WMT – Watch Out For a Falling Stock Price at Wal-Mart

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Welcome to the Stock of the Day!

Everyone knows Wal-Mart (WMT) for its “Every Day Low Prices,” but shareholders didn’t bargain for a Q3 earnings report that would also send share prices tumbling. But with Black Friday just around the corner and the stock going ex-dividend next month, could this pullback be a buying opportunity?

Let’s talk about it right now.

Company Overview

Even though it started as a mom-and-pop operation in 1962, Wal-Mart has since grown into the largest public corporation by revenue. Although it is best known for its Walmart brand name, Wal-Mart is actually responsible for 55 brands of discount department stores across 27 countries. Wal-Mart has the largest private workforce in the world; it employs over 2.2 million individuals across more than 10,800 locations worldwide.

Earnings Buzz

Wal-Mart reported mixed results for the third quarter. On the one hand, net sales climbed 1.7% year-over-year to $115.69 billion. However, analysts had forecast sales of $116.84 billion, so Wal-Mart posted a minor sales miss. A competitive retail environment and unfavorable currency exchange rates weighed on sales both home and abroad.

Meanwhile, net income inched up 3% to $3.74 billion, or $1.14 per share. This topped the $1.13 consensus earnings estimate. However, Walmart management slashed its full-year earnings guidance to a range of $5.01 to $5.11 per share. This is well below the Street view of $5.20 per share.

Industry Breakdown

Of the 24 companies in the Discount Variety Stores industry, Wal-Mart is the largest in terms of market cap. The company also stands out in terms of its 2.4% dividend yield, which is third highest in the industry. In terms of earnings growth and return on equity, Wal-Mart ranks in the top 10. But when it comes to sales growth and long-term growth rate, Wal-Mart falls in the middle of the pack.

Wal-Mart’s main competitors are Costco (COST) and Target (TGT); currently, COST pulls of the highest rating as a C-rated hold. Meanwhile, TGT and WMT are both downright sells. I’ll discuss what is up with Wal-Mart shortly, but Target has a mixed earnings surprises track record (it has missed the bulls eye for two of the past three quarters) and is suffering from anemic sales and earnings growth. Institutional investors have caught onto this, so buying pressure could hardly be weaker for TGT (or for WMT, for that matter).

Current Ratings

Before you buy any stock, you should always run it through my free Portfolio Grader ratings system. Institutional buying pressure for WMT has eroded lately–as shown by its F-rated Quantitative Grade. This is very important because it suggests that WMT has a poor risk-to-return ratio. And on the fundamentals side, there is ample room for improvement.

Currently, Wal-Mart receives C- and D-ratings for six of the eight metrics I graded it on, including sales growth and earnings growth. The exceptions are its A-rated return on equity and its B-rated cash flow. So WMT receives a C for its Fundamental Grade.

Bottom Line

As of this posting, November 15, I consider WMT a D-rated Sell.

Would you like to check the fundamentals backing up one of your stocks? For more stock grades, please visit my Portfolio Grader website!

 

 

Hot Penny Companies For 2015

Pharma giant Pfizer, Inc. (NYSE: PFE) is expected to release its third-quarter financial results on�Oct.29�and will host a conference call on the same day at at 10 a.m. EDT to discuss the operating performance and outlook.

New York-based Pfizer is expected to earn 56 cents a share, according to analysts polled by Thomson Reuters. In the same period last year, it earned 53 cents a share.

Earnings of Pfizer, one of the biggest pharmaceutical companies in the world, have beat thee street's view twice in the past four quarters. The consensus estimate has increased by a penny in the past 90 days with three analysts raising their earnings estimate in the last month.

Sales for the July to September period are estimated to fall 9,1 percent to $12.70 billion from $13.98 billion in the year-ago quarter. The sales could be weighed due to the loss of patent exclusivity of certain key drugs and forex headwinds.

Hot Penny Companies For 2015: China Sky One Medical Inc.(CSKI)

China Sky One Medical, Inc., through its subsidiaries, engages in the development, manufacture, marketing, and sale of over-the-counter, branded nutritional supplements, and over-the-counter plant and herb-based pharmaceutical and medicinal products primarily in the People?s Republic of China. The company?s product line includes ointments, sprays, medicated skin patches, injections, capsules, suppositories, tablets, and granules. It offers compound camphor cream that is used for the treatment of various pathogens on the skin surface, such as mycete, trichopytic, staphylococcal bacteria aureus, bacillus coli, and candida albicans; Hemorrhoids ointment, which is made in soft ointment form and is effective in sterilizing and relieving hemorrhoid symptoms, including itching, distending pain, burning, and bleeding; Sumei slim patch, a natural treatment for weight loss; and pain relief patch used for various ailments, including fever, headache, heart dysentery, diarrhea, and sti ffness and pain caused by hypertension. China Sky One also provides anti-hypertension patch that stimulates blood capillaries, improves circulation, and reduces blood pressure; QiXue asthma patch, which is designed for the treatment of chronic inflammation of the airways and lungs; Stomatitis spray used for the treatment of dental ulcers, pharyngitis, and faucitis; Naphazoline Hydrochloride eye drops for the temporary relief of eye redness associated with minor irritations; cardiac arrest early examination kit used for early stage diagnosis of myocardial infarction; and Naftopidil dispersible tablet designed to treat benign enlargement of the prostate among middle age males, as well as various wash fluids, tablets, liniments, syrups, capsules, granules, injections, aerosols, and oral liquids. The company sells its products through Chinese domestic pharmaceutical chains. China Sky One Medical, Inc. is headquartered in Harbin, the People?s Republic of China.

Hot Penny Companies For 2015: China Metro-Rural Holdings Limited(CNR)

China Metro-Rural Holdings Limited, through its subsidiaries, primarily engages in the development and operation of agricultural logistics and trade centers in northeast China. It also involves in purchasing, processing, assembling, merchandising, and distributing pearls and jewelry products. The company markets its pearls and jewelry products to wholesale distributors and mass merchandisers in Europe, the United States, Hong Kong, and other parts of Asia. In addition, it develops, sells, and leases residential and commercial properties in Hong Kong and the People?s Republic of China. The company is based in Tsimshatsui, Hong Kong.

Advisors' Opinion:

• [By Katie Brennan]

  Canadian National Railway Co. (CNR) added 0.9 percent to C$104.93 and Canadian Pacific Railway Ltd. rose 1.7 percent to C$131.73.

  Niko Resources surged 3.4 percent to $8.64 after the company entered an agreement for a $60 million loan that will be funded by a group of institutional investors. Net proceeds from the loan will be used to fund working capital requirements.

5 Best Performing Stocks To Invest In Right Now: Security National Financial Corporation(SNFCA)

Security National Financial Corporation, together wit its subsidiaries, provides various insurance and annuity products in the United States. It operates in three segments: Life Insurance, Cemetery and Mortuary, and Mortgage Loans. The Life Insurance segment engages in selling and servicing certain lines of life insurance, annuity products, and accident and health insurance products. This segment also involves in funeral plans and interest-sensitive life insurance, as well as other traditional life and accident, and health insurance products. It sells its products through direct agents, brokers, and independent licensed agents. The Cemetery and Mortuary segment offers various products that include grave spaces, interment vaults, mausoleum crypts and niches, markers, caskets, flowers, and other related products. This segment also provides services, such as professional services of funeral directors, opening and closing of graves, use of chapels and viewing rooms, and use of automobiles and clothing. It sells its products and services through sales representatives. As of December 31, 2009, the segment owned 6 cemeteries and 10 mortuaries. The Mortgage Loans segment originates and underwrites residential and commercial loans for new construction, existing homes, and real estate projects primarily in Arizona, California, Florida, Hawaii, Indiana, Kansas, Oklahoma, Oregon, Texas, Utah, and Washington. The company was founded in 1965 and is headquartered in Salt Lake City, Utah.

Hot Penny Companies For 2015: Dehaier Medical Systems Limited(DHRM)

Dehaier Medical Systems Limited, through its subsidiaries, designs, develops, and markets respiratory and oxygen homecare products, and other medical devices in the People?s Republic of China. The company also distributes products designed and manufactured by other companies. It offers various medical devices, including C-arm X-ray systems, anesthesia machines, patient monitors, and general hospital products; and respiratory and oxygen homecare products, such as oxygen concentrators, CPAP devices, portable sleep diagnostics, and Rhinitis hyperthermia devices; and air compressors and ventilator trolleys. The company sells its products primarily to distributors, as well as to hospitals, clinics, and government health bureaus directly. Dehaier Medical has a tripartite strategic cooperation agreement with Taiyo Nippon Sanso Shenwei (Shanghai) Medical Gas Co. Ltd. and Beijing Orient Medical Gas Co. Ltd. to develop and distribute oxygen therapy services for the home use market i n Beijing. The company was formerly known as De-Haier Medical Systems Limited and changed its name to Dehaier Medical Systems Limited in June 2005. Dehaier Medical Systems Limited was incorporated in 2003 and is based in Beijing, the People?s Republic of China.

Hot Penny Companies For 2015: RAIT Financial Trust(RAS)

RAIT Financial Trust operates as a self-managed and self-advised real estate investment trust (REIT). The company, through its subsidiaries, invests in, manages, and services real estate-related assets with a focus on commercial real estate. It also offers a set of debt financing options to the commercial real estate industry along with fixed income trading and advisory services. In addition, RAIT Financial Trust owns and manages a portfolio of commercial real estate properties, and manages real estate-related assets for third parties. The company qualifies as a REIT for federal income tax purposes. As a REIT, it would not be subject to federal income tax to the extent that it distributes at least 90% of its taxable income to its shareholders. RAIT Investment Trust was founded in 1997 and is based in Philadelphia, Pennsylvania.

Advisors' Opinion:

• [By Marc Bastow]

  Commercial real estate holding real estate investment trust (REIT) RAIT Financial (RAS) raised its quarterly dividend 7% to 16 cents per share, payable on Jan. 31 to share holders of record as of Jan. 7.
  RAS Dividend Yield: 7.48%

• [By Thomas Sobon]

  Instead of expressing my thoughts in vague generalities, let me be specific and tell you what I am actually doing on a real time basis to cope with the market dynamics occurring right now: I have a core position in one stock, which is the RAIT Financial Trust (RAS). Its size is about 60% of what I would consider to be a "full" position. I also have a lot of cash that I intend to use for trading purposes. Last Friday I sold shares of RAS at $7.55 which I bought on Monday with a low-ball bid of $7.11, so my gain on the trade was 6.2%. In early trading yesterday (Monday July 1) RAS is priced at $7.67, up from where I sold on Friday. That's great news because I accomplished what I wanted to do with the trade and now paper profit on the core shares in my portfolio is increasing.

• [By Eric Volkman]

  RAIT Financial Trust (NYSE: RAS  ) investors will be getting slightly more than they did last quarter, as a reward for putting their faith in the company (NYSE: RAS  ) . The real estate investment trust has declared a common stock dividend of $0.13 per share, to be handed out on July 31 to shareholders of record as of July 12.�That amount is $0.01, or 8%, higher than RAIT's previous distribution of $0.12, which was paid in April. Prior to that, the firm dispensed $0.10 per share.

Hot Penny Companies For 2015: QC Holdings Inc.(QCCO)

QC Holdings, Inc. provides various retail consumer financial products and services in the United States. The company offers payday loans that provide cash to the customers in exchange for a promissory note with a maturity of two to three weeks. It also provides financial products and services, such as installment loans, credit services, check cashing services, title loans, money transfers, and money orders. In addition, QC Holdings operates as a credit services organization that arranges a third-party lender to make a loan to the consumer and for providing related services to the consumer, including a guarantee of the consumer?s obligation to the third-party lender. Further, the company sells used vehicles and earns finance charges from the related vehicle financing contracts; and provides reconditioning services on its inventory of vehicles, and repair services for its customers. As of As of December 31, 2010, the company operated 523 short-term lending branches in 24 sta tes; and 5 buy here, pay here lots located in Missouri and Kansas. QC Holdings, Inc. was founded in 1984 and is headquartered in Overland Park, Kansas.

Advisors' Opinion:

• [By Monica Gerson]

  QC Holdings (NASDAQ: QCCO) shares tumbled 2.58% to reach a new 52-week low of $2.27. QC Holdings' trailing-twelve-month profit margin is 0.60%.

  NewLead Holdings (NASDAQ: NEWL) shares dipped 6.56% to touch a new 52-week low of $0.08 after the company completed the acquisition of titles in the Viking Mine located in Kentucky, USA.

• [By Lisa Levin]

  QC Holdings (NASDAQ: QCCO) shares tumbled 3.68% to reach a new 52-week low of $1.83. QC Holdings shares have dropped 42.60% over the past 52 weeks, while the S&P 500 index has gained 31.67% in the same period.

Hot Penny Companies For 2015: Telestone Technologies Corp.(TSTC)

Telestone Technologies Corporation offers wireless local-access network technologies and solutions primarily in the People?s Republic of China. Its access-network solutions include the research and development, and application of access network technology. The company designs and sells electronic equipments, such as wireless fiber-optic distribution system products, RFPA products, passive components, repeaters, radio frequency peripherals, and base station antennas used to provide access network solutions for 2G, 3G, broadband access, and CATV networks. It also offers project design, project management, installation, maintenance, and other after-sales services. In addition, Telestone provides various solutions to the telecommunications industry, which cover indoor and outdoor environments comprising hotels, residential estates, office buildings, airports, exhibition centers, underground stations, and highways and tunnels. Further, the company engages in the design, develop ment, production and installation, and trading of wireless telecommunication coverage system equipment. It also markets its products to 29 countries, including Argentina, Bangladesh, Brazil, Canada, Colombia, Costa Rica, Ecuador, Hong Kong, Iceland, India, Indonesia, Ireland, Kazakhstan, Malaysia, Mexico, Mongolia, New Zealand, the Philippines, Russia, Saudi Arabia, Singapore, South Africa, South Korea, Thailand, Turkey, the United States, the United Arab Emirates, Ukraine, and Vietnam. The company was founded in 1987 and is headquartered in Beijing, China.

Advisors' Opinion:

• [By insider]

  The valuation box will also clearly indicate it if a company is traded at below its net current asset value (NCAV). Please see the valuation box for Telestone (TSTC) below.

Hot Penny Companies For 2015: Span-America Medical Systems Inc.(SPAN)

Span-America Medical Systems, Inc. engages in the manufacture and distribution of various therapeutic support surfaces and related products utilizing polyurethane and other foam products for the medical, consumer, and industrial markets in the United States and Canada. Its medical products consist of polyurethane foam mattress overlays; therapeutic support surfaces, which include non-powered and powered therapeutic support surfaces; patient positioners; seating products; and Selan skin care creams and lotions for health care facilities, including acute care hospitals, long-term care facilities, and home health care providers. The company offers pressure management products, including Geo-Matt, PressureGuard, Geo-Mattress, Span-Aids, Isch-Dish, and Selan products. Its consumer product line consists primarily of convoluted and contour-cut mattress overlays, and pillows for the consumer bedding market; and industrial product line includes foam products used in various industr ies, such as water sports equipment, automotive, photographic film, durable goods, and electronics industries. The company was founded in 1970 and is based in Greenville, South Carolina.

How Five 'Sin Stocks' Are Conquering the World

Johnnie Walker scotch has one of the best advertisements I've seen in years.

Maybe you've caught it. It shows hundreds of Mexican men and women unshackling themselves from a massive boulder and climbing up a mountain unchained.

Playing on their popular tagline "Keep Walking," Johnnie Walker's parent company Diageo plc (NYSE: DEO) encourages Mexican consumers to "Keep Mexico Walking."

The ad aims to tell the story of Mexico's long journey from poverty to prosperity.

And it's working. The scotch brand has created a booming market in Mexico - which is why Foreign Policy magazine wrote this month that Johnnie Walker scotch is conquering the world.

This is great news for investors - even if you aren't a fan of scotch...

Diageo is part of a global club known as "sin stocks." These are companies that manufacture products that are considered "bad for you." These companies tend to be recession-proof - meaning their stocks can outperform markets when the economy is shaky.

Sin stocks are a favorite among portfolio owners not just because consumers buy these brands in good times and bad, but also because they tend to provide steady income streams in the form of strong dividends.

Now international sin stocks like Diageo have developed strategies to capture growth from emerging markets, like Mexico. Even though emerging markets have struggled since earlier this year when Ben Bernanke first hinted at a QE taper, their consumers continue to spend money on alcohol, tobacco products, gambling, and fast food.

These stocks are a great way to profit from regions with increasing consumer spending - as U.S. consumers struggle with declining incomes and rising prices.

Here are five sin stocks to buy now.

Sin Stocks to Buy: Diageo (NYSE: DEO)

Diageo manufactures, distributes, and markets global brands of spirits, beer, and wine products. The company's premium spirits brands like Johnnie Walker and Smirnoff are extremely popular with U.S. consumers. But it's the international market that offers the real boost.

With a yield of 2.37%, Diageo is a giant in the emerging markets. The company earns 33% of its profits from emerging markets and has gained double-digit growth abroad. Investors will expect this dividend to increase in the future as well, as the firm has raised distributions each year for more than a decade.

And, as I noted above, they're very good at marketing toward emerging markets.

Sin Stocks to Buy: Philip Morris International (NYSE: PM)

As the world's second-largest tobacco company, Philip Morris International (NYSE: PM) is an ideal sin stock.

And with numbers like these, it's also an ideal way to play global growth...

The U.S. cigarette market is shrinking. The best growth opportunities are found in countries like India, China, and Indonesia. One out of every three cigarettes in the world is smoked in China, and while Americans might be kicking the habit, new international cigarette smokers are joining the ranks every day.

Philip Morris owns nearly 30% of the global tobacco market and has grown substantially since its split with Altria Group. The company owns the world's most iconic brand in Marlboro and has a very loyal client base.

It also offers investors a strong yield of 4.40%.

Sin Stocks to Buy: McDonald's Corp. (NYSE: MCD)

McDonald's Corp. (NYSE: MCD), home of the Big Mac, remains one of the most reliable streams of income for international investors.

Domestically, the company is transitioning to a different menu, and its income streams have steadied. That's why most of its growth is now found in Africa and East Asia, where the company is thriving.

It's also a Dividend Aristocrat and has raised its dividend for 34 consecutive years.

The company offers a strong 3.42% yield, and it has increased its annual distributions by 26.5% each year over the last ten years.

Sin Stocks to Buy: Altria Group Inc. (NYSE: MO)

Altria Group Inc. (NYSE: MO) is the crown-jewel of sin stocks.

Through its many subsidiaries, Altria manufactures and sells cigarettes, wine, and other tobacco products in the United States and abroad. It dominated the U.S. cigarette market with 50% of the domestic share. But for investors, the reputation as a dividend champion has made it one of the best companies to own.

The country has increased its dividend for 43 years in a row. Its current yield sits at 5.40%.

For more on why Altria's yield makes it one of the best sin stocks to buy, check out This Time-Tested Strategy Could Be Your Winning Lottery Ticket.

Sin Stocks to Buy: Wynn Resorts (Nasdaq: WYNN)

Wynn Resorts Ltd (Nasdaq: WYNN) currently pays out a $1 per share dividend each quarter, which provides a 2.4% dividend yield at its current stock price. And it's thriving because of the international markets.

You see, Las Vegas is old news for casino giants. All the action is now in China, and companies like Wynn Resorts are raking in the profits from gamblers abroad. Today, approximately 70% of Wynn's gambling revenues come from Macau, the thriving Chinese gambling district.

Wynn currently owns two properties in Macau and has begun to construct its third. Best of all, they're thriving because they are one of the few companies to earn a gaming license from the Chinese government.

That makes Wynn a stock poised for even more growth abroad.

Now for today's top story: I Just Got Another "Strong Buy" Signal...

Barrick May Raise $3.45 Billion in Share Sale to Cut Debt

Barrick Gold Corp. (ABX), the world's largest producer of the metal, plans to sell shares to raise as much as $3.45 billion to help reduce its debt, which has increased this year as the price of the commodity declined.

It agreed to sell 163.5 million shares for $18.35 apiece in a so-called bought deal that's being underwritten by a group led by RBC Capital Markets, Barclays Plc and GMP Securities LP, Toronto-based Barrick said today in a statement. There's an over-allotment option for the sale of an additional 24.5 million shares, the company said.

Barrick has come under pressure this year after the price of gold fell 21 percent. Chief Executive Officer Jamie Sokalsky has explored cash-raising options including a strategic equity investment, a sale of a stake in its copper business and selling a stale in its $8.5 billion Pascua-Lama project to a state-backed Chinese investor, people with knowledge of the matter said yesterday. Barrick said earlier today it will suspend construction work at Pascua-Lama to help conserve cash.

Top Energy Stocks For 2015

The announcement of the share sale was made after the close of regular trading in New York, where Barrick fell 5.4 percent to $18.34 at 6 p.m.

Barrick plans to use $2.6 billion from the stock sale to buy back bonds. It will use $1.1 billion to repurchase $700 million of 1.75 percent notes due 2014 and $350 million of 4.875 percent notes, also due in 2014.

Asset Sales

A further $1.5 billion will be used to buy back bonds from 10 issues due between 2015 and 2023, with priority given to notes with shorter maturities, the company said in a separate statement.

Even before today's announcement, Sokalsky had chosen a series of measures to counter the gold decline and rising mining costs, including the sale of some mining and energy assets. Barrick took $8.7 billion of writedowns in the second quarter and cut its dividend.

Long-term debt was $14.6 billion at the end of the third quarter, up from $12.1 billion at the end of 2012. Barrick said in a separate statement today before announcing the stock sale that options to improve liquidity included drawing down $4 billion available on a credit facility, further asset sales, and selling debt or equity either in the public markets or to private investors, a course of action that may include the creation of a strategic partnership.

Barrick said today it's targeting $500 million of additional annual savings from measures including an organizational restructuring, which involves cutting 1,850 jobs.

Project Suspension

Today It reported third-quarter earnings excluding tax adjustments and foreign-exchange losses of 58 cents a share, topping the 50-cent average of 20 estimates compiled by Bloomberg. Sales declined 12 percent to $2.99 billion, beating the $2.91 billion average estimate.

The suspension of work at Pascua-Lama will cut capital spending in 2014 by as much as $1 billion and improve near-term cash flows.

The project is located more than 12,000 feet (3,657 meters) up in the Andes mountains on the Argentina-Chile border and was already partially halted amid concerns from local groups about potential water contamination. Barrick said all activity except that needed for environmental protection and regulatory compliance will cease, with a restart depending on future costs, gold prices and the regulatory and legal outlook.

Barrick has struggled with the project, its sole mine-construction project, amid ballooning costs, delays and environmental challenges. Pascua-Lama was originally expected to cost no more than $3 billion when construction was approved in 2009.

Microsoft Unveils New Tablet Lineup (MSFT)

Microsoft (MSFT) announced that it will be adding two new tablets to its popular “Surface” line.

The Surface 2 and Surface Pro 2 will be the latest additions to Microsoft’s product line as the firm looks to strengthen its footprint in the tablet world that has long been dominated by Apple (AAPL). The new tablets will feature a number of hefty upgrades like improved performance, increased battery life, better camera and screen resolution and a dual kickstand that allows for two unique positions.

Pre-orders for the two new devices will go live tomorrow morning and the tablet will be available in 22 countries.

Microsoft shares were down 5 cents, or 0.15%, at Monday’s close. The stock is up over 22% this year.

Netflix, Inc. (NFLX) Q4 Earnings Preview: What To Watch?

Netflix, Inc. (NASDAQ: NFLX) will post its fourth-quarter 2013 financial results and business outlook on its investor relations website on Jan.22, 2014, at approximately 1:05 p.m. Pacific Time. The company will host a live video discussion about its financial results and business outlook at 2:00 p.m. Pacific Time.

Netflix is the world's leading Internet television network with more than 40 million members in 40 countries enjoying more than one billion hours of TV shows and movies per month, including original series.

Wall Street expects Netflix to earn 66 cents a share, according to analysts polled by Thomson Reuters. The consensus estimate implies more than five fold increase from 13 cents it earned last year. The company expects fourth quarter earnings of 47 to 73 cents a share.

[Related -Netflix, Inc. (NASDAQ:NFLX): Can Netflix Trump Amazon.com, Inc. With New Plans?]

Netflix's earnings have managed to top Street view thrice in the past four quarters, with upside surprises in the range 6.10 percent to 200 percent.

Over the past three months, the consensus estimate increased significantly, 20 cents, indicating bullish expectations from the Street. One analyst has raised profit view of the company in the last 30 days.

Quarterly revenue is expected to rise 23.3 percent to $1.17 billion from $945.24 million in the same quarter last year.

Subscriber additions remain the key metric for Netflix, especially in domestic region. Investors would be focusing on the growth in its U.S. streaming subscriber base. It appears to be on the path to adding approximately 5 million subscribers per year for the foreseeable future. Netflix added 1.3 million U.S. subscribers in the third quarter and ended September period with 31.1 million.

[Related -Why I'm Eyeing Airline Stocks]

Netflix expects fourth quarter domestic streaming members of 32.7 to 33.5 million and paid members between 31.1 and 31.8 million. The company expects fourth quarter net additions to be flat with last year, and to expand its contribution margin about 400 basis points year-over-year (YoY) to about 23 percent. The unit is set to generate revenue of $731 million to $741 million and profit of $165 million to $177 million.

Moreover, the Street will look at how the company's international business is faring. The company recently launched in Netherlands after UK/Ireland and Latin America.

For the third quarter, international net additions were way up from the prior year at 1.4 million new members. Netflix sees continued momentum and about 1.3 million net additions for the fourth quarter, ending 2013 with 10.5 million international members.

Netflix predicts international membership of 10.1 to 10.9 million in the fourth quarter, with paid members between 9.1 and 9.7 million. The division is projected to generate revenue of $210 million to $224 million. However, given increased investments, the segment would post a loss.

Netflix has been adding original and exclusive content to its streaming library, which seems to be paying off. TV series such as House of Cards, Lilyhammer, and Arrested Development are drawing a lot of audiences, resulting in higher sign ups.

The fourth quarter saw the premiere of its inaugural second season of Lilyhammer. It also launched its first animated original series with Dreamworks Animation, Turbo F.A.S.T.

During the quarter, Netflix and CBS announced a content licensing agreement in which all eight seasons of the SHOWTIME drama "Dexter" will become available for Netflix members in the United States.

The company plans to double its content investments in 2014. Coming to Netflix in 2014 will be second seasons of House of Cards, Orange is the New Black, Derek and Hemlock Grove.

Further, the company is improving streaming experience. It recently rolled out profiles features, allowing households distinct "profiles" for different members or viewing tastes within their home. This enables Netflix to provide a much more personalized experience for its members.

The key focus on the conference call would be the Net Neutrality rules and its impact on the company. Shares of Netflix have fallen as much as 5 percent after a federal appeals court's decision to strike down the FCC's net neutrality rule, which prohibits wireline service providers from discriminating against certain types of data traffic.

If this portion of FCC rule is gone, then streaming services such as Netflix and Amazon may need to pay higher fees to ISPs such as Verizon (NYSE:VZ) as their services consume heavy bandwidth. Moreover, Netflix and Amazon.com, Inc. (NASDAQ: AMZN) may need to change their pricing structure; otherwise, they need to incur heavy losses, lose customers or hurt margins. Investors may look at Netflix's strategy to counter this development.

The company may also be questioned over its new plans, which is supposed to rival Amazon Prime. Netflix is experimenting a $6.99 a month plan that allows only one video stream to be watched at once, and a $9.99-a-month plan that allows three streams at one time.

Netflix' moves surprised Wall Street, which was expecting the company to increase the price. This is a significant aspect of the long-term bull thesis on the stock and is needed to offset rising content costs. The Street may eager to know the traction of new plans with customers.

In addition, the Netflix may be surrounded with questions over competitive trends and its plans to partner with U.S. pay-TV operators to expand its domestic streaming business. The fourth quarter outlook would also be a focus point.

For the third quarter, Los Gatos, California-based Netflix's profit soared to $31.8 million or 52 cents a share from $7.7 million or 13 cents a share last year. Revenues for the quarter grew to $1.11 billion from $905.1 million last year.

NFLX stock, which traded in the 52-week range of $96.59 to $389.16, trades 83 times its forward earnings. They have dropped 6.5 percent since the last quarterly report but surged 240 percent in the last year.

Small Cap Acceleron Pharma (XLRN): Betting on the Celgene Connection (BIND, OPHT & FMI)

Yesterday, small cap biotech Acceleron Pharma Inc (NASDAQ: XLRN) rose 9.76% plus shares are up 183.6% for retail investors since its September IPO, meaning its worth taking a closer look at the stock along with the performance of other biotech IPOs like BIND Therapeutics Inc (NASDAQ: BIND), Ophthotech Corp (NASDAQ: OPHT) and Foundation Medicine Inc (NASDAQ: FMI) which also debuted at the same time.

What is Acceleron Pharma?

Small cap Acceleron Pharma's scientists have world-leading expertise in developing medicines that regulate the transforming growth factor beta (TGF-β) superfamily of proteins, which play fundamental roles in the growth and repair of cells and tissues such as red blood cells, bone and blood vessels. Based on this expertise, Acceleron Pharma has built a pipeline of protein therapeutics targeted to key mechanisms underlying blood diseases and cancer:

The company is developing sotatercept in collaboration with Celgene Corporation (NASDAQ: CELG) for the treatment of anemia in rare blood diseases plus both are developing ACE-536 to treat anemia in patients with rare blood disorders. Acceleron Pharma is also developing dalantercept for the treatment of patients with advanced cancer who have failed prior therapy.

As for the other biotech IPOs around the same time, BIND Therapeutics is a clinical-stage nanomedicine platform company developing Accurins™, its novel targeted and programmable therapeutics; Ophthotech Corp specializes in innovative treatment strategies for wet age-related macular degeneration (AMD), the leading cause of vision loss in people over the age of 55 in the US and EU; and Foundation Medicine is a molecular information company focused on fundamentally changing the way patients with cancer are treated.

What You Need to Know or Be Warned About Acceleron Pharma

Last Tuesday, Acceleron Pharma announced it had commenced an underwritten public offering of $100 million of its common stock with a further announcement coming yesterday about the 2,400,000 shares of common stock being offered at a price of $50.00 per share (before underwriting discounts) plus the underwriters having a 30-day option to purchase up to an additional 360,000 shares of common stock at the public offering price. The offering is expected to close on or about January 28, 2014 but what's odd is that the stock closed at $56.70 yesterday and is still rising in premarket trading.

Top 5 Blue Chip Stocks To Own Right Now

With that in mind moving forward, it should be mentioned that December was an interesting month for Acceleron Pharma when it was selected for addition to the Russell 2000®, Russell 3000® and Russell Global® Indexes as part of Russell Investments' quarterly addition of stocks that had recent IPOs. In addition, Celgene Corporation initiated a phase 2 clinical trial of sotatercept in patients with end stage renal disease on hemodialysis – triggering a $7 million milestone payment to Acceleron Pharma which is also eligible to receive future development, regulatory and commercial milestones of up to $360 million for the sotatercept program.

A look at Google Finance for Acceleron Pharma's financials reveals revenues of $15.25M (2012) and $80.91 (2011) plus a net loss of $32.58M (2012) and net income $36.27M (2011) while last year the company reported revenues of $4.27M (3 months ending 2013-09-30), $26.43M (3 months ending 2013-06-30) and $15.01M (3 months ending 2013-03-31) along with a net loss  of $18.51M (3 months ending 2013-09-30) and net income of $13.08M (3 months ending 2013-06-30) and $1.65M (3 months ending 2013-03-31). Acceleron Pharma also had $116.48M in cash at the end of last September to cover $16.52M in current liabilities and $10.98M in long term debt – meaning the company is not going to run our of funds anytime soon when you consider the just announced follow on offering.

Share Performance: Acceleron Pharma vs. BIND, OPHT & FMI

On Wednesday, small cap Acceleron Pharma rose 9.76% to $56.70 (XLRN has a 52 week trading range of $16.78 to $57.89 a share) for a market cap of $1.59 billion plus the stock is up 183.6% for retail investors since its September IPO. Here is a look at the performance of Acceleron Pharma verses that of other September 2013 biotech IPOs BIND Therapeutics, Ophthotech Corp and Foundation Medicine:

As you can see from the above performance chart, Acceleron Pharma is the best performing biotech IPO of the batch while the performance of BIND Therapeutics, Ophthotech Corp and Foundation Medicine has been more mixed, but none have exactly been duds either.

Finally, here is a look at the latest technical charts for Acceleron Pharma verses

The Bottom Line. Small cap Acceleron Pharma has certainly been a winner for investors thanks in part to the credibility it gets from the Celgene Corporation connection, but new investors might want to be more cautious before jumping in given that run-up. 

3 Secret Dividend Stocks That Have Paid for 30+ Years

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It can be difficult to sleep at night when you hold dividend stocks during difficult times. The unspoken worry all dividend investors have is whether those dividends will be lowered or — in a worst-case scenario — stopped entirely. And if you live on a fixed income, these worries are likely magnified.

A lot of dividend stocks, particularly in the leisure segment, suspended dividends during the financial crisis. So when choosing a dividend stock, it's always wise to look at the company's dividend payment track record.

Today, we've got three lesser-known dividend stocks that have all been paying dividends for more than thirty years.

WGL Holdings (WGL)

The first of the secret dividend stocks is WGL Holdings (WGL), a rather unique stock in that it's a diversified energy play. The company is split into four segments, of which two are regulated natural gas utilities, representing about 82% of the company's total assets. The utility portions sell and deliver natural gas to some two million customers in the Washington D.C. and Virginia areas.

The company then does something rather clever. Another segment of its business involves retail energy marketing, which means it competes with regulated utilities and other third party marketers to sell and deliver natural gas and electricity in Maryland, Virginia, Delaware, Pennsylvania and DC.

The part I like the most is that WGL sells energy credits and carbon offsets to retail customers. The company makes good money on these elements, selling to customers who just like to feel good about how they are "helping the environment". WGL has a long history as an energy company and has paid a dividend for 37 years. It currently pays 4.3% annually.

Old Republic International (ORI)

The next of our dividend stocks is one you may have heard of: Old Republic International (ORI). Old Republic started back in 1887 and is an insurance company that offers a huge array of products. A lot of insurance products are very high margin, and Old Republic has mastered the art of selling these. Extended Automobile Warranty, Home Warranty an Travel Accident Insurance are great segments to be playing in.

Still, Old Republic handles all the more traditional products like general liability, commercial auto, commercial multi-peril, aviation, inland marine, worker's comp, and a suite of commercial financial products (surety, fidelity, asset protection).

I like the diversification, and the fact that the company has offered many of these products for anywhere from 30 years to 100 years may explain why it's paid a dividend for the last 32 years. That dividend is presently at 4.3%.

Vectren Corporation (VVC)

Top Penny Stocks To Own Right Now

The final stock on our list of secret dividend stocks is Vectren Corporation (VVC). VVC is another an energy play that's diversified into four segments. The company provides 566,000 customers with natural gas delivery in Indiana.

The company owns coal mines and sells the coal it unearths, and also operates an infrastructure segment that will construct and repair underground pipelines. In addition, it has a few legacy businesses invested in various energy opportunities.

It's a wee bit riskier in that it pays out almost all its FCF as a dividend, but it's also been paying a dividend for 54 years. Somehow I think management has figured out how to juggle the cash just fine. That payout is presently at 3.9%.

Lawrence Meyers does not own shares in any company mentioned.

BlackBerry Gets MLK Day Gift in Toronto Trading

It is always interesting to see what happens on ADR trading in the home markets when U.S. stock markets are closed. Martin Luther King Day brings a closure of the U.S. markets, but all other major global markets and exchanges are open for normal trading. At least it is considered normal, but without the liquidity of U.S. market participants in their local exchanges.

BlackBerry Ltd. (NASDAQ: BBRY) already had a great Friday in New York trading. Its shares gained just over 6% to $9.08, based on Citron Research putting out a change of sentiment report. Usually that report is negative and better known for short selling candidates, but the publication called out that things have reversed and that the company formerly known as Research In Motion could see its shares rise to at least $15.

Many U.S. investors forget that BlackBerry is Canadian, and its home market is the Toronto Stock Exchange. Its shares rose 6.5% to C$9.98 in Toronto on Friday (versus $9.08 close in New York). Shares were up 15% in Toronto trading on Monday’s mid-morning session to C$11.50. On a static basis, this would equate to a BlackBerry price of close to $10.46 in New York for Tuesday. Again, static means assuming no further changes — and markets do tend to change.

A driver for the gains on Monday in Toronto is a Seeking Alpha article calling for now at least $17 for BlackBerry. We will leave the judgment of that article up to you. After all, the author’s “disclosure” in the article says “I am long BlackBerry” right up front.

Regardless of what is happening, Fairfax now has a far better buy on its hands for the value of the stake it owns. The group’s $9.00 buyout offer that went into fumes is now far under the current share price.

BlackBerry also still has more than 107 million shares in the short interest, according to the Nasdaq short interest report from December 31. That is down from a peak of more than 167 million shares short in mid-November, but it is still a massive number of shares that have to be covered if this stock rally really starts to get out of hand.

U.S. markets being closed does not mean that the community of Waterloo in Canada did not get to breathe a bit easier on Monday.

Top Undervalued Stocks To Watch For 2014

Over the years, studies have consistently shown that investing in both domestic equities and foreign stocks reduces portfolio risk while enhancing returns. In addition, the primacy of the US equity markets has greatly diminished with its share of global stock market capitalization declining steadily. This is why investors can no longer limit themselves to domestic investments. By holding widely diversified portfolios selected after careful research, global mutual funds offer a secure an attractive opportunity for investors looking at this category.

Below we will share with you 5 top rated global mutual funds. Each has earned a Zacks #1 Rank (Strong Buy) as we expect these mutual funds to outperform their peers in the future. To view the Zacks Rank and past performance of all global funds, investors can click here to see the complete list of funds.

Oppenheimer Global Value A (GLVAX) invests in undervalued securities issued by domestic and foreign companies. The fund does not impose any limit on investment in foreign securities of any country. Funds are invested irrespective of the company�� market cap. This global fund returned 44.66% over the last one year period

Top Undervalued Stocks To Watch For 2014: Tupperware Corporation(TUP)

Tupperware Brands Corporation operates as a direct seller of various products across a range of brands and categories through an independent sales force. The company engages in the manufacture and sale of kitchen and home products, and beauty and personal care products. It offers preparation, storage, and serving solutions for the kitchen and home, as well as kitchen cookware and tools, children?s educational toys, microwave products, and gifts under the Tupperware brand name primarily in Europe, Africa, the Middle East, the Asia Pacific, and North America. The company provides beauty and personal care products, which include skin care products, cosmetics, bath and body care, toiletries, fragrances, nutritional products, apparel, and related products principally in Mexico, South Africa, the Philippines, Australia, and Uruguay. It offers beauty and personal care products under the Armand Dupree, Avroy Shlain, BeautiControl, Fuller, NaturCare, Nutrimetics, Nuvo, and Swissgar de brand names. The company sells its Tupperware products directly to distributors, directors, managers, and dealers; and beauty products primarily through consultants and directors. As of December 26, 2009, the Tupperware distribution system had approximately 1,800 distributors, 61,300 managers, and 1.3 million dealers; and the sales force representing the Beauty businesses approximately 1.1 million. The company was formerly known as Tupperware Corporation and changed its name to Tupperware Brands Corporation in December 2005. The company was founded in 1996 and is headquartered in Orlando, Florida.

Advisors' Opinion:

• [By Monica Gerson]

  Tupperware Brands (NYSE: TUP) is expected to report its Q3 earnings at $1.03 per share on revenue of $623.34 million.

  Varian Medical Systems (NYSE: VAR) is projected to post its Q4 earnings at $1.12 per share on revenue of $779.02 million.

Top Undervalued Stocks To Watch For 2014: Caterpillar Inc.(CAT)

Caterpillar Inc. manufactures and sells construction and mining equipment, diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives worldwide. It operates through three lines of businesses: Machinery, Engines, and Financial Products. The Machinery business offers construction, mining, and forestry machinery, including track and wheel tractors, track and wheel loaders, pipelayers, motor graders, wheel tractor-scrapers, track and wheel excavators, backhoe loaders, log skidders, log loaders, off-highway trucks, articulated trucks, paving products, skid steer loaders, underground mining equipment, tunnel boring equipment, and related parts. It also manufactures diesel-electric locomotives; and manufactures and services rail-related products and logistics services for other companies. The Engines business provides diesel, heavy fuel, and natural gas reciprocating engines for Caterpillar machinery, electric power generation systems, marine, petrol eum, construction, industrial, agricultural, and other applications. It offers industrial turbines and turbine-related services for oil and gas, and power generation applications. This business also remanufactures Caterpillar engines, machines, and engine components; and offers remanufacturing services for other companies. The Financial Products business provides retail and wholesale financing alternatives for Caterpillar machinery and engines, solar gas turbines, and other equipment and marine vessels, as well as offers loans and various forms of insurance to customers and dealers. It also offers financing for vehicles, power generation facilities, and marine vessels. The company markets its products directly, as well as through its distribution centers, dealers, and distributors. It was formerly known as Caterpillar Tractor Co. and changed its name to Caterpillar Inc. in 1986. Caterpillar Inc. was founded in 1925 and is headquartered in Peoria, Illinois.

Advisors' Opinion:

• [By John Divine]

  Lastly, Caterpillar (NYSE: CAT  ) stock was one of just seven decliners in the index, losing 1.5% today. Nearly 5% of Caterpillar's float is being sold short, making it the second most loathed stock in the Dow. Talks between Caterpillar and the United Steelworkers Union broke off late yesterday, showing the extent of the differences between the two sides as the 800 workers try to negotiate new contracts.

• [By Dan Carroll]

  While the U.S. economy is sitting pretty as China slows, things aren't so black-and-white for American companies. Leading manufacturers such as Caterpillar (NYSE: CAT  ) have seen China as a major opportunity for growth in future years on the back of the country's previous growth. While the U.S. rebound and housing recovery should help Caterpillar, a major Chinese infrastructure investment would have propelled this company -- and the industrial sector as a whole -- back up the charts. That obviously won't happen if China's economy keeps falling and its manufacturing sector continues to be mired in contraction territory.

Top 10 Oil Stocks To Buy Right Now: Schlumberger N.V.(SLB)

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

Advisors' Opinion:

• [By Matt DiLallo]

  For example, Halliburton (NYSE: HAL  ) saw record first-quarter revenue of $7 billion. Declining rig counts and pricing pressures in North America were still more than offset by the company's international operations. Meanwhile,�Schlumberger's (NYSE: SLB  ) results seemed to mirror National Oilwell Varco's in that its revenue was up over the year-ago quarter but slipped sequentially. Again, though, the story here was strength internationally with weakness in North America. Further, both companies are very optimistic about the future and neither see any signs of a business slowdown.�

• [By Dan Caplinger]

  Halliburton's share-price gains began early in the quarter after the company reported its first-quarter results. Although the company took a massive $637 million charge related to the 2010 Gulf disaster, Halliburton managed to hold its own on the domestic front in a weak environment. Internationally, the company cleaned up, with sales rising 21% and at more than twice that rate in the Eastern Hemisphere. But, perhaps most importantly, Halliburton looked favorably on the near-future for domestic drilling, noting gains in margins, and some pricing power expected to enhance profitability from rising well production. That's consistent with the results we saw from Schlumberger (NYSE: SLB  ) this morning, as the industry leader beat earnings expectations with a nearly 50% jump in its net profits, coming largely from overseas activity, but also posting a 2% revenue increase in North America.

Top Undervalued Stocks To Watch For 2014: Dollar Tree Inc.(DLTR)

Dollar Tree, Inc. operates discount variety stores in the United States and Canada. Its stores offer merchandise primarily at the fixed price of $1.00. The company operates its stores under the names of Dollar Tree, Deal$, Dollar Tree Deal$, Dollar Giant, and Dollar Bills. Its stores offer consumable merchandise, including candy and food, and health and beauty care, as well as household consumables, such as paper, plastics, household chemicals, in select stores, and frozen and refrigerated food; variety merchandise, which includes toys, durable housewares, gifts, party goods, greeting cards, softlines, and other items; and seasonal goods, such as Easter, Halloween, and Christmas merchandise. As of April 30, 2011, it operated 4,089 stores in 48 states and the District of Columbia, as well as 88 stores in Canada. The company was founded in 1986 and is based in Chesapeake, Virginia.

Advisors' Opinion:

• [By John Maxfield]

  If you're anything like me, two things went through your head when you saw this. First, you regret that you missed out on the investment opportunity. Since the end of 2009, shares in all three of these companies, led by Dollar Tree (NASDAQ: DLTR  ) , have simply trounced the broader market. Even the worst performer of the bunch, Family Dollar (NYSE: FDO  ) , beat it by nearly a factor of two.

• [By Jon C. Ogg]

  Dollar Tree Inc. (NASDAQ: DLTR) was maintained as a Buy but was removed from the prized Conviction Buy list at Goldman Sachs.

  Duke Energy Corp. (NYSE: DUK) was raised to Buy from Hold with a $79 price target at Argus.

Want to build up your wealth? Be your own CEO

Let�s clear up any potential doubts immediately. This article is not telling you to quit your job and start up your own business. This article is telling you to manage your own personal finances as if they were a company and you were the CEO.

It�s not about learning a new set of skills. Everything that you need to know, you already know. The same principles and rules that we follow in being successful professionals and running successful companies, apply to managing our own personal finances successfully.

Companies all over the globe run pretty much identically.

They start out, learn to manage their expenses, and over time � hopefully sooner rather than later � become profitable. As human beings, we are the same. We want to manage our expenses, and hopefully immediately, become profitable.

So what steps do we need to take? Let�s see.

1. Have a Business Plan

The first step to getting anywhere is knowing where you want to go. This applies to a company by way of a business plan and to you by way of your own financial plan. Once you know what your goal is, or multiple goals are, you�ll be able to prioritize your tasks, assign your efforts, and restrain your costs on non-essential expenditure.

In personal finance, this means know your cash flows � both in and out.
For your inflows, this will primarily refer to your salary and/or business income. The best way to take care of this income stream is to be dedicated, and skilful. Be a team player, enhance your skills, take on the opportunities that come your way, and you will take good care of your career. If your current place of employment isn�t offering you any further growth or learning opportunities, just like if a current market isn�t offering you any further revenue growth, it might be time for a change.

Outflows are assessed in the next step � knowing your burn rate.

2. Know Your Burn Rate

One of the best efficiency indicators, or lack thereof, is the burn rate. To put it very simply, this is the rate at which a company loses, or burns, capital. According to Wikipedia, �the term burn rate can also refer to how quickly individuals spend their money, particularly their discretionary income�.
It helps to classify you as a saver or a spender. For example, Indians 3 generations ago were savers. Indian youth today tend to be spenders.

By tracking how fast funds are being spent, it�s easy to tell how soon a company will be broke. It�s the same for personal finance. Very often, financial planners are hired to help successful, smart people who somehow are spending more than they are earning. No matter how important that big ticket item is, if you don�t spend less than you are earning, sooner or later your personal finances are going to �go out of business�. It is absolutely vital to save.

You might think you are not in this category, of people who spend more than they earn, but look back at your investment redemption habits as well. You might find that you have dipped into your savings and into your liquid funds more than you think. Also, keep your credit cards in mind. Basically, know your burn rate. Having a budget helps here.

3. How Much Are You Paying The Taxman? & What�s Your Net Profit?

For a company, there are two types of profits. The first is a bigger, nicer looking number. It's your gross profit. The second, real number is your profit post taxes. Your net profit. The same thing applies to you.

If there�s one thing a company absolutely has to be good at to make the most of its profits, it�s saving taxes. Luckily for us, our Income Tax Act has very clear deductions and exemptions such as the ever popular Section 80C, infrastructure bonds under Section 80CCF, your HRA if you are living on rent, Section 24 if you have a home loan, Section 80D for your mediclaim premium, and many more.

If you save an additional Rs. 20,000 taxes every year by making the most of your deductions & exemptions, and invest this money, then in 20 years you will have a corpus of Rs. 14.41 lakhs (assuming a 12% per annum growth rate) � generated purely out of your tax savings being invested.

Never lose sight of the fact that it�s not just about leftover cash in the bank, it�s about how you use (read invest) that cash to achieve your life goals.
Being financially free of all obligations, worries or concerns is an excellent feeling. We should try to get there as safely and quickly as we can.

4. Have an MIS

This is crucial. Management Information Systems are key to overseeing the workings of a company. MIS will help you see what you�re doing and see where you need to make changes.

Personal finance MIS (a budget and an investment report) will show you what you�re saving, where you�re investing and how the investments are doing. A Master MIS � i.e. your financial plan � will first and foremost assess your risk appetite and tolerance, and proceed from there.

It will show you exactly how much you�re earning and spending each year, how and where you�re investing, towards which goals, and how the investments are growing towards achieving your specific goal corpuses. You should review your Plan once a year to ensure you account for external changes (market fluctuations) and internal changes (changes in your personal situation).

Conclusion

Some of the smartest investors we know treat their own finances like they run their own companies. So remember to follow these 4 simple rules and become the CEO of your own successful personal finances.

PersonalFN is focused on providing well researched, unbiased and expert advice.

The Winds of Patent Enforcement Are Changing, & That's Good for This Company (GOOG, AAPL, AKAM, LLNW, ENIP)

The winds of change are blowing within the patent-enforcement world. If you don't believe it, just ask Google Inc. (NASDAQ:GOOG), Akamai Technologies, Inc. (NASDAQ:AKAM), and Soverain Software LLC. All three companies recently found themselves on the losing end of a court decision - the appeals court, to be specific - that likely could have come out very differently were we in the patent-enforcement environment from just a couple of years ago. Things are a bit tougher for patent owners now. That change, however, may be a very good thing for patent-protection company Endeavor IP Inc. (OTCBB:ENIP) and ENIP shareholders.

For Google, the shift in the way the justice system looks at and handles patent infringement claims meant its subsidiary, Motorola Mobility, unsuccessfully bid to convince U.S. courts that Apple Inc. (NASDAQ:AAPL) was illegally using Google's/Motorola's approach for sending data to a mobile device. For Akamai Technologies, it means that the technology company will need to re-explain - and ultimately re-prove - to an appellate court that Limelight Networks, Inc. (NASDAQ:LLNW) infringed on an Akamai patent even though a lower court had already ruled in favor of AKAM. And for Soverain Software, the legal system's new attitude meant it wouldn't even bother hearing its appeal for a case it lost against Newegg last year... a case it's tried against several companies, losing every time.

It's interesting, and telling, because Google, Akamai Technologies, and Soverain Software may have all found different outcomes were their issued raised a couple of years earlier. A justice system that's tired of fielding confusing (and sometimes downright silly) intellectual property cases, however - and a justice system that's unable to deny that the practice of IP protection has become a joke - is now finally willing and able to take an intelligent and reasonable approach to patent infringement claims. Translation: The nonsense that held water in 2011 and 2012 isn't going to stand up in courtrooms anymore.

So how, pray tell, is any of this good news for patent protection company Endeavor IP Inc.? It's a politically and socially unpopular term, but the truth is still the truth - the justice system is growing weary of patent trolls who own thousands and thousands of patents, most just to see how much money they can milk from other companies; sometimes an IP company doesn't even know the nature of each patent it owns. The court system is also growing weary of companies that use patent law to harass other entities into submission, as many of these patents used as a basis for a court claim are ambiguous, at best. From this point forward, the patent protection framework is one that will reward legitimate claims, and one that isn't going to look favorably on entities that are proverbially throwing spaghetti on a wall... just to see what sticks.

And, Endeavor IP is the embodiment of "quality over quantity" when it comes to patent portfolios. The proof: Whereas other technology companies and IP companies may own thousands and thousands of patents, ENIP owns three. Not three thousand, but three, as in "you can count 'em on one hand" three.

No, it's not a lot, but that's the point - Endeavor IP is sticking with patents it knows are the real deal, and can be successfully monetized before a court case is necessary, or successfully argued should a trial be required.

It's not just a pipedream either. Endeavor's flagship patent, the '981 patent (covering "Wireless Communication Enabled Meter and Network" technology) has already led to four licensing agreements, with four more companies opting to contest the claim in court. Considering that four organizations didn't even put up a fight when ENIP made the claim though, the four litigants are apt to be facing an uphill battle in their respective courtrooms.

It was only recently that Endeavor IP Inc. sought to enforce another of its patents - patent no. 7,366,201 (the '201 patent), covering a "Remote Access Energy Meter System and Method." It's filing suit against a utility company, though there is certainly more than one organization out there using the smartmeter technology covered in '201. Regardless, ENIP is well-positioned heading into the litigation effort, as it's made a point of scrutinizing the enforceability of its IP before ever even acquiring those patents.

Top 10 Warren Buffett Stocks To Own Right Now

Bottom line? While the IP landscape is changing for the worse for most patent owners like Google, Akamai Technologies, or Soverain Software, the court system's evolving attitudes about patent law are playing right into Endeavor IP's hand. Investors who like the prospects of licensing and patent enforcement as a business model may want to refocus their attention to a quality patent play like ENIP. 

For more on Endeavor IP, visit the SCN research page here.

Retail sales edge higher in December

NEW YORK (CNNMoney) This holiday season wasn't the Christmas miracle that retailers were hoping for, but sales were slightly higher in December.

Retail sales ticked up 0.2% in December, according to a report from the Census Bureau. Economists were expecting sales to be flat from November.

November sales, however, were revised lower. The government said sales grew by 0.4% in November from October, down from the 0.7% it had originally reported last month.

The number was lifted by strong sales in food, clothing and accessories and gasoline -- necessities or gifts on the lower end of the price spectrum. Sales at nonstore retailers, which includes online shopping, increased by 1.4%.

But big-ticket items that are generally considered staples of the holiday season weighed on the number. Sales at electronic and appliance stores fell by 2.5%, and auto dealers saw a 1.9% drop.

Experts say that weather could have played a part in what sold, and what didn't sell, last month.

"If you look at what lifted spending -- food, gasoline, clothing, online shopping -- are all things you can expect to increase when the weather is bad," said Joseph LaVorgna, chief U.S. economist at Deutsche Bank. "Harsh weather could have hurt some of the bigger discretionary items."

LaVorgna also said that these better-than-expected numbers should calm investors who were anxious after last week's lackluster jobs report. The government reported that hiring slumped sharply in December, making it the weakest month for job growth since January 2011, the Labor Department said last week.

There were signs of weakness for retailers beginning Thanksgiving weekend, the start of the of holiday shopping season. The National Retail Federation reported that shoppers spent an average of 4% less over that holiday weekend, the first time spending declined since 2009, when the recession cut deeply into spending.

Industry analyst ShopperTrak reported a modest 2.3% increase in spending on Thanksgiving day and Black Friday.

Analysts had long expected holiday sales to be sluggish this year. In November, Morgan Stanley predicted that sales growth during the fourth quarter would be the weakest since 2008.

The calendar was also expected to hurt sa! les, since there were six fewer shopping days between Thanksgiving and Christmas this past holiday season compared to a year earlier. This means that there were not only fewer opportunities for shoppers to get to stores, but also that stores would likely cut prices earlier and in a bigger way to try to lure customers in to make up for it.

Is Sirius XM Radio Ready for a Breakout 2013?

Sirius XM (NASDAQ:SIRI), the biggest satellite-radio provider in the U.S., has been on a tear since the end of the financial crisis. After trading at as low as 6 cents in February 2009, the stock now trades 57 times higher at a price of $3.48. Can Sirius sustain its dominance in the satellite radio space in the long term? Let's use our CHEAT SHEET investing framework to decide whether Sirius is an OUTPERFORM, WAIT AND SEE, or STAY AWAY.

C = Catalysts for the Stock's Movement

Sirius's subscriber base grew a record 9 percent in 2012. The radio service has added around 5 million subscribers since 2008, mostly coming from new vehicle sales. Revenues increased 12 percent in the first quarter to $897.4 million. It is no surprise that Sirius profits from increased auto sales — about two-thirds of new cars come with a trial of Sirius, of which an estimated 45 percent of drivers choose to subscribe full-time. Last month, Ford (NYSE:F) announced a 13 percent gain in revenue, and analysts estimate that new auto sales will hit 15.5 million this year; but if vehicle sales slow this year, so too will Sirius's subscriber growth. Investors interested in Sirius should pay special attention to monthly auto sales data.

E = Earnings Growth is Mixed, but Revenue Growth is Increasing

Sirius has experienced sporadic revenue growth in the past several quarters, but it is important to note that it continues to beat analysts' estimates. Revenues have been more stable as Sirius has experienced sustainable quarter-over-quarter revenue growth. The renewed growth rate in auto sales should help Sirius continue its trend of increasing revenues. Additionally, it has maintained a steady operating margin of around 25 percent the past several quarters.

	2013 Q1	2012 Q4	2012 Q3	2012 Q2	2012 Q1
Qtrly. EPS	$0.02	$0.0225	$0.01	$0.48	$0.02
EPS Growth QoQ	-11.1%	125%	-97.9%	2300%	81.8%
Qtrly. Revenue	$897.4M	$892.42M	$867.36M	$837.54M	$804.72M
Rev. Growth QoQ	0.6%	2.9%	3.6%	4.1%	2.7%

T = Technicals Are Strong

Sirius is currently trading at around $3.50, above both its 200-day moving average of $3.20 and its 50-day moving average of $3.40. The company has experienced a strong uptrend over the past year and is just 4 percent from resetting its 52-week high of $3.63. Sirius, however, has attracted a relatively large amount of bears — around 10 percent of its shares outstanding are held by short sellers. Recently, the 50-day moving average line (in red) has been a reliable support level for the stock (i.e. the stock bounces back up after hitting this price). If the price moves too far below this level, the uptrend could be flattening or reversing.

Conclusion

Sirius will benefit in the near term from increased auto sales, a strong product line, and high barriers to entry in the satellite radio industry. Long term, Sirius could face competition from Pandora (NASDAQ:P) and Apple (NASDAQ:AAPL), as they will be able to offer in-car radio services at a cheaper price than Sirius. Additional downside risk to Sirius comes from Liberty Media, which holds a 51 percent stake in the company. Liberty plans on increasing Sirius's debt level, which will increase risk to shareholders. However, this is not likely to impact Sirius' core business. While Sirius has generated stable revenue growth, there are some potential risks to its future profitability. Auto sales are likely to slow by next year and competition in the satellite radio industry will only intensify. For now, Sirius is a WAIT AND SEE.

Where High Tech Meets High Fashion

One up-and-coming trend investors should be aware of is wearable technology. It's best-known these days in the form of activity-monitoring wristbands from Nike and Fitbit, Google Glass, and of course Apple's long-rumored iWatch.

At the recent CE Week in New York City, however, Motley Fool analyst Rex Moore found evidence that serious fashion designers are joining the trend and are already putting out some interesting merchandise -- from temperature-regulating jackets to shoes made from a 3-D printer. Apple- and Android-device users can also celebrate the wide variety of fashion products for their toys, including an ingenious wearable iPad case.

The highlight of the week was the Fashion Ware runway show, produced by Living in Digital Times. Rex spoke with founder Robin Raskin about the show -- and the convergence of fashion and technology.

Who wins?
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Why Derma Sciences's Earnings May Not Be So Hot

Although business headlines still tout earnings numbers, many investors have moved past net earnings as a measure of a company's economic output. That's because earnings are very often less trustworthy than cash flow, since earnings are more open to manipulation based on dubious judgment calls.

Earnings' unreliability is one of the reasons Foolish investors often flip straight past the income statement to check the cash flow statement. In general, by taking a close look at the cash moving in and out of the business, you can better understand whether the last batch of earnings brought money into the company, or merely disguised a cash gusher with a pretty headline.

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 Derma Sciences (Nasdaq: DSCI  ) , whose recent revenue and earnings are plotted below.

Source: S&P Capital IQ. Data is current as of last fully reported fiscal quarter. Dollar values in millions. FCF = free cash flow. FY = fiscal year. TTM = trailing 12 months.

Over the past 12 months, Derma Sciences burned $14.4 million cash while it booked a net loss of $15.8 million. That means it burned through all its revenue and more. That doesn't sound so great.

All cash is not equal
Unfortunately, the cash flow statement isn't immune from nonsense, either. That's why it pays to take a close look at the components of cash flow from operations, to make sure that the cash flows are of high quality. What does that mean? To me, it means they need to be real and replicable in the upcoming quarters, rather than being offset by continual cash outflows that don't appear on the income statement (such as major capital expenditures).

For instance, cash flow based on cash net income and adjustments for non-cash income-statement expenses (like depreciation) is generally favorable. An increase in cash flow based on stiffing your suppliers (by increasing accounts payable for the short term) or shortchanging Uncle Sam on taxes will come back to bite investors later. The same goes for decreasing accounts receivable; this is good to see, but it's ordinary in recessionary times, and you can only increase collections so much. Finally, adding stock-based compensation expense back to cash flows is questionable when a company hands out a lot of equity to employees and uses cash in later periods to buy back those shares.

So how does the cash flow at Derma Sciences look? Take a peek at the chart below, which flags questionable cash flow sources with a red bar.

Source: S&P Capital IQ. Data is current as of last fully reported fiscal quarter. Dollar values in millions. TTM = trailing 12 months.

When I say "questionable cash flow sources," I mean items such as changes in taxes payable, tax benefits from stock options, and asset sales, among others. That's not to say that companies booking these as sources of cash flow are weak, or are engaging in any sort of wrongdoing, or that everything that comes up questionable in my graph is automatically bad news. But whenever a company is getting more than, say, 10% of its cash from operations from these dubious sources, investors ought to make sure to refer to the filings and dig in.

With questionable cash flows amounting to only 9.7% of operating cash flow, Derma Sciences's cash flows look clean. Within the questionable cash flow figure plotted in the TTM period above, stock-based compensation and related tax benefits provided the biggest boost. Overall, the biggest drag on FCF also came from other operating activities (which can include deferred income taxes, pension charges, and other one-off items) which represented 14.8% of cash from operations.

A Foolish final thought
Most investors don't keep tabs on their companies' cash flow. I think that's a mistake. If you take the time to read past the headlines and crack a filing now and then, you're in a much better position to spot potential trouble early. Better yet, you'll improve your odds of finding the underappreciated home-run stocks that provide the market's best returns.

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We can help you keep tabs on your companies with My Watchlist, our free, personalized stock tracking service.

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Hot Warren Buffett Stocks To Buy For 2014

I��e seen Carl Icahn�� name in print nearly daily so I�� highly confident I can spell his surname with ease. The ��ighly confident��phraseology was Drexel Burnham speak, denoting its capacity to raise billions in capital for assorted greenmailers, LBO practitioners and takeover honchos who operated in the mid-seventies and eighties.

Carl graduated from this class of operators with distinction. It included Messrs. Riklis, Perelman, Ted Turner, Rupert Murdoch, Nelson Peltz, Leon Black and at least a dozen more anointed by Mike Milken who came through with deal financing.

I respect Icahn�� achievement. Over the years, Carl�� made more right decisions than clunkers. His net worth is unlikely to sink below $10 billion even in a bear market because he knows how to press sell buttons on major positions rather than marry them for life, Warren Buffett�� modus operandi.

Unlike Icahn, I never cottoned to Netflix, and actually sold Apple around $450. He owns Transocean and successfully browbeat management to increase its payout to shareholders. I�� in Halliburton, but just a silent investor.

Hot Warren Buffett Stocks To Buy For 2014: Baidu Inc.(BIDU)

Baidu, Inc. provides Chinese and Japanese language Internet search services. Its search services enable users to find relevant information online, including Web pages, news, images, multimedia files, and blogs through the links provided on its Websites. The company also offers online community-based products and entertainment platforms; an instant messaging service; and a consumer-oriented e-commerce platform. In addition, it designs and delivers online marketing services and auction-based P4P services that enable its customers to reach users who search for information related to their products or services. The company serves online marketing customers consisting of small and medium sized enterprises, large domestic corporations, and Chinese divisions or subsidiaries of multinational corporations primarily operating in the medical, machinery, education, franchising, electronic products, e-commerce, ticketing, tourism, information technology, consumer products, real estate, entertainment, and financial services industries. It sells its online marketing services directly, as well as through its distribution network. The company was formerly known as Baidu.com, Inc. and changed its name to Baidu, Inc. in December 2008. Baidu, Inc. was founded in 2000 and is headquartered in Beijing, the People?s Republic of China.

Advisors' Opinion:

• [By Vincent Ho]

  Baidu (BIDU) has made impressive gains in the last 3 months. There are some very insightful articles on SA that argue for a bullish stance based on valuations. There are other articles on SA which cover the recent acquisition of 91 Wireless. This article is different in that it offers an overview of Baidu's business model in relation to its dependence on online advertising. Understanding the direction of the internet is important to predict future revenue growth. Significantly new competition from Qihoo (QIHU) is also something Baidu has never experienced before. There are doubts if Baidu has enough tools to clean up its act and regain market share.

Hot Warren Buffett Stocks To Buy For 2014: Creso Exploration Inc. (CXT.V)

Creso Exploration Inc., an exploration stage company, engages in the exploration and development of mineral properties in Canada and Guatemala. It primarily explores for gold and silver, as well as for copper and zinc. The company�s principal mining exploration holdings include the Tyranite, Minto, and Duggan properties located in the Shining Tree mining camp of northern Ontario. Creso Exploration Inc. is headquartered in Montreal, Canada.

Top Penny Stocks To Own Right Now: Putnam Premier Income Trust(PPT)

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1 Reason SurModics May Be Headed for a Slowdown

Here at The Motley Fool, I've long cautioned investors to keep a close eye on inventory levels. It's a part of my standard diligence when searching for the market's best stocks. I think a quarterly checkup can help you spot potential problems. For many companies, products that sit on the shelves too long can become big trouble. Stale inventory may be sold for lower prices, hurting profitability. In extreme cases, it may be written off completely and sent to the shredder.

Basic guidelines
In this series, I examine inventory using a simple rule of thumb: Inventory increases ought to roughly parallel revenue increases. If inventory bloats more quickly than sales grow, this might be a sign that expected sales haven't materialized. Is the current inventory situation at SurModics (Nasdaq: SRDX  ) out of line? To figure that out, start by comparing the company's inventory growth to sales growth. How is SurModics doing by this quick checkup? At first glance, pretty well. Trailing-12-month revenue increased 8.5%, and inventory decreased 8.2%. Comparing the latest quarter to the prior-year quarter, the story looks decent. Revenue increased 12.2%, and inventory shrank 8.2%. Over the sequential quarterly period, the trend looks OK but not great. Revenue dropped 1.1%, and inventory grew 4.4%.

Advanced inventory
I don't stop my checkup there, because the type of inventory can matter even more than the overall quantity. There's even one type of inventory bulge we sometimes like to see. You can check for it by examining the quarterly filings to evaluate the different kinds of inventory: raw materials, work-in-progress inventory, and finished goods. (Some companies report the first two types as a single category.)

A company ramping up for increased demand may increase raw materials and work-in-progress inventory at a faster rate when it expects robust future growth. As such, we might consider oversized growth in those categories to offer a clue to a brighter future, and a clue that most other investors will miss. We call it "positive inventory divergence."

On the other hand, if we see a big increase in finished goods, that often means product isn't moving as well as expected, and it's time to hunker down with the filings and conference calls to find out why.

What's going on with the inventory at SurModics? I chart the details below for both quarterly and 12-month periods. (SurModics reports raw materials and work-in-progress inventory combined.)

Source: S&P Capital IQ. Data is current as of latest fully reported quarter. Dollar amounts in millions. FY = fiscal year. TTM = trailing 12 months.

Source: S&P Capital IQ. Data is current as of latest fully reported quarter. Dollar amounts in millions. FQ = fiscal quarter.

Let's dig into the inventory specifics. On a trailing-12-month basis, each segment of inventory decreased. On a sequential-quarter basis, finished goods inventory was the fastest-growing segment, up 11.2%. That can be a warning sign, so investors should check in with SurModics's filings to make sure there's a good reason for packing the storeroom for this period.

Foolish bottom line
When you're doing your research, remember that aggregate numbers such as inventory balances often mask situations that are more complex than they appear. Even the detailed numbers don't give us the final word. When in doubt, listen to the conference call, or contact investor relations. What at first looks like a problem may actually signal a stock that will provide great returns. And what might look hunky-dory at first glance could actually be warning you to cut your losses before the rest of the Street wises up.

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Add SurModics  to My Watchlist.