Thursday, February 28, 2013

WPX Energy Misses on Both Revenue and Earnings

WPX Energy (NYSE: WPX  ) reported earnings on Feb. 28. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), WPX Energy missed estimates on revenues and missed expectations on earnings per share.

Compared to the prior-year quarter, revenue dropped significantly. Non-GAAP earnings per share dropped to a loss. GAAP loss per share dropped.

Gross margins grew, operating margins dropped, net margins increased.

Revenue details
WPX Energy recorded revenue of $572.0 million. The three analysts polled by S&P Capital IQ anticipated revenue of $634.7 million on the same basis. GAAP reported sales were 5.7% lower than the prior-year quarter's $877.0 million.

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

EPS details
EPS came in at -$0.20. The nine earnings estimates compiled by S&P Capital IQ predicted -$0.09 per share. Non-GAAP EPS were -$0.20 for Q4 compared to $0.14 per share for the prior-year quarter. GAAP EPS were -$0.53 for Q4 compared to -$1.71 per share for the prior-year quarter.

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

Margin details
For the quarter, gross margin was 45.0%, 290 basis points better than the prior-year quarter. Operating margin was -15.0%, much worse than the prior-year quarter. Net margin was -12.8%, much better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $768.9 million. On the bottom line, the average EPS estimate is -$0.15.

Next year's average estimate for revenue is $2.77 billion. The average EPS estimate is -$0.43.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 37 members out of 41 rating the stock outperform, and four members rating it underperform. Among 16 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 15 give WPX Energy a green thumbs-up, and one give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on WPX Energy is hold, with an average price target of $21.35.

Is WPX Energy the right energy stock for you? Read about a handful of timely, profit-producing plays on expensive crude in "3 Stocks for $100 Oil." Click here for instant access to this free report.

  • Add WPX Energy to My Watchlist.

3-D Printing Is Only in the Early Innings

The U.S. Patent and Trademark Office in Alexandria Virginia recently hosted a fascinating display of technology. 3D Systems (NYSE: DDD  ) , Stratasys (NASDAQ: SSYS  ) , and other top companies involved in additive manufacturing, or 3-D printing, displayed their wares in the same room.

Fool analyst Rex Moore was at the conference, and chatted with Stratasys engineer Jim Comb. In this installment of our multi-part series, Jim says that despite being around for many years, this technology is still in its infancy.

3D Systems is at the leading edge of a disruptive technological revolution, with the broadest portfolio of 3-D printers in the industry. However, despite years of earnings growth, 3D Systems' share price has risen even faster, and today the company sports a dizzying valuation. To help investors decide whether the future of additive manufacturing is bright enough to justify the lofty price tag on the company's shares, The Motley Fool has compiled a premium research report on whether 3D Systems is a buy right now. In our report, we take a close look at 3D Systems' opportunities, risks, and critical factors for growth. You'll also find reasons to buy or sell, and receive a full year of analyst updates with the report. To start reading, simply click here now for instant access.

Taking it to the home turf: YouTube adds AirPlay competitor to its iOS app - 01:44 PM

(gigaom.com) -- YouTube just released an update to its iOS app that adds the ability to send videos directly from an iPad or iPhone to Google TV devices. The AirPlay-like feature was first rolled out as part of YouTube’s Android app in November, but YouTube has long said that it wants to bring the technology to additional platforms to allow frictionless sharing of content in the living room.

An announcement on Google+ states in part:

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“Anyone on the same WiFi can join in to control the video or add videos to a playlist (Harlem Shake marathon anyone?). This feature is also available on the YouTube app for Android, and it’s coming to more TVs this year from LG, Sony, Panasonic and others.”

The updated YouTube app allows users to browse for videos and then initiate playback on the TV screen. A key part of this is discovery: The app automatically finds compatible devices within the same network — something that’s similar to the ease-of-use of Apple’s AirPlay. Of course, the big difference is that AirPlay limits video playback to the Apple TV, whereas YouTube wants to bring remote playback to as many devices as possible.

YouTube’s remote playback technology is in part based on DIAL, an open framework for second screen functionalities that YouTube has been developing in cooperation with Netflix. Google Product Manager Timbo Drayson told me in November that YouTube’s ultimate goal was “to move the whole industry forward” with this kind of technology.

Who Owns JPMorgan Chase?

When it comes to investing, going with the crowd will rarely if ever make you rich. If your objective is to buy low and sell high, then, in the words of Warren Buffett, you must be "greedy when others are fearful and fearful when others are greedy." This is the foundation of contrarian investing.

But there's a twist. To be a contrarian investor, you must first know what to be contrary to. And this is where the SEC's invaluable EDGAR database comes in. Every quarter companies and large institutional investors are required to disclose their equity holdings. By patching these together, we can get a fuller picture of a particular stock's popularity.

What follows, in turn, is a look at the principal owners of JPMorgan Chase's (NYSE: JPM  ) outstanding common stock.

A broad overview
As you can see in the following chart, the majority of JPMorgan's nearly four billion shares are held by institutional investors. Company insiders, including board members and corporate executives, own a further 0.58% of the outstanding common stock. And the public at large owns the remaining 24%.

Source: S&P's Capital IQ.

Institutional investors
Digging in a big further, the largest institutional stake holders in JPMorgan are asset managers. Bond giant BlackRock� (NYSE: BLK  ) tops the list at 6.3% ownership, followed by The Vanguard Group, the asset management arm of State Street (NYSE: STT  ) , Wellington Management, and Fidelity Investments.

Source: S&P's Capital IQ.

The largest buyers have been Citigroup (NYSE: C  ) and BlackRock, which have recently acquired 12.9 million and 11.9 million shares of common stock, respectively. Meanwhile, the two largest sellers of late have been Putnam LLC and Mason Capital Management, which have disposed of 11.8 million and 8.1 million shares, respectively.

Biggest insiders
Turning to inside investors, far and away the largest inside owner is James Crown, the president of Henry Crown and Company and a JPMorgan director. The second largest holder is CEO Jamie Dimon, who has amassed nearly six million shares in the bank. And the third largest holder is Ina Drew, the former chief investment officer who lost her job as a result of the London Whale scandal.

Source: S&P's Capital IQ.

The Foolish bottom line
While insider and institutional ownership together represent only one metric, it's nevertheless an important one. Beyond hinting at the overall market's sentiment toward a stock, it also gives investors insight into the confidence of the people best positioned to predict a company's current state and future success.

Want to learn more about JPMorgan Chase?
With big finance firms still trading at deep discounts to their historic norms, investors everywhere are wondering if this is the new normal, or if finance stocks are a screaming buy today. The answer depends on the company, so to help figure out whether JPMorgan is a buy today, I invite you to read our premium research report on the company. Click here now for instant access!

Energy Stocks: Energy stocks fall; refiners hold recent gains

SAN FRANCISCO (MarketWatch) � Energy stocks fell on Monday, tracking the broader U.S. equity market and as refiner Phillips 66 announces an increase in dividends.

Phillips 66 PSX �shares gained 0.1%, one of a handful of companies posting small gains. The refiner�s board of directors declared Monday dividends of 31.25 cents per share, a 25% over the previous quarter.

Tesoro Corp. TSO �was among the top gainers of the day, with shares up 1.5%. Bank of America-Merrill Lynch raised Tesoro stock to buy from neutral, saying the strong run the stock has enjoyed is set to continue.

Shares of Tesoro have gained 45% in the past three months, and 96% in the past 12 months.

PBF Energy Inc. PBF �shares rose 1.9%. PBF, which debuted on the New York Stock Exchange in December, has said it expects more crude to be delivered by rail this year.

PBF�s two East Coast refineries -- 190,000-barrel-a-day Delaware City, Del., and 180,000-barrel-a-day Paulsboro, New Jersey, refineries -- have historically paid Brent oil prices for their crude, but the rail deliveries will allow the company to pay less for its crude relative to Brent, analysts as Simmons & Co. said in a note.

�We expect increased crude-by-rail expectation to put an upward bias on earnings estimates for PBF,� they said.

Shares of refiner Valero Energy Corp. VLO �gained 0.8%.

Exxon Mobil Corp. XOM �shares declined 0.4%. Chevron Corp. shares CVX �were down 0.4% as well, and ConocoPhillips COP �retreated 0.5%.

Chevron and Apache Corp. APA �said Monday their Canadian subsidiaries have completed their previously announced transaction to build and operate the Kitimat liquefied natural gas project in British Columbia.

The companies will each own 50% of the project, which includes an LNG plant, a pipeline, and 664,000 acres of shale plays. Chevron is to become operator of the pipeline and LNG plant later on.

Apache shares were down 0.6%.

Oilfield services company Baker Hughes Inc. BHI �shares were down 0.4%.

Dahlman Rose & Co. on Monday downgraded to hold nine oil field service companies with strong North American exposure, including Baker Hughes.

It cited the sector�s sluggish outlook for the region�s exploration and production spending and the recent outperformance of the North American-oriented stocks.

Of the group, Baker Hughes has the most exposure to North America, Dahlman Rose added.

1 Oil Stock We Like Right Now

The following video is from Friday's Investor Beat, in which host Chris Hill and analysts Ron Gross and James Early look at the hardest-hitting investing stories of the day.

In this segment, ExxonMobil (NYSE: XOM  ) and Chevron (NYSE: CVX  ) reported higher quarterly profits thanks to success in their refinery operations. ExxonMobil is once again the world's biggest public company. Which oil giant is the better bet for investors going forward? In this installment of Investor Beat, our analysts discuss the future of the two companies.

ExxonMobil is one of the most beloved dividend stocks on the market. If you're interested in some of these dividends on your quest for high-yielding stocks, The Motley Fool has compiled a special free report outlining our nine top dependable dividend-paying stocks. It's called "Secure Your Future With 9 Rock-Solid Dividend Stocks." You can access your copy today at no cost! Just click here to discover the winners we've picked.

The relevant video segment can be found between 3:28 and 4:49.

Wednesday, February 27, 2013

Esure Follows Direct Line to the Market

LONDON --�Esure looks set to join the London Stock Exchange after it confirmed plans to�float its shares�and announced a doubling of profits. The mooted valuation is 1 billion pounds, and comes on the back of Direct Line's (LSE: DLG  ) �successful flotation last year.

Esure's profits rose to 115 million pounds in 2012, up from just 55 million pounds the year before. The company has around 1.75m policies in total, consisting of 1.25m for car insurance and 0.5m for home insurance.

It was launched in 2000 by Peter Wood, who had previously set up Direct Line. The Halifax was an initial partner in the business, but its 70% stake was purchased in a management buyout in 2010 for around 200 million pounds.

Esure grew rapidly on the back of a successful advertising campaign featuring Michael Winner, and then followed this with the launch of Sheila's Wheels in 2005. It also own 50% of the comparison website Go Compare.

Esure vs Direct Line
Esure will be hoping it can match the success of Direct Line's flotation. Priced at 175 pence, Direct Line shares hit 226.5 pence last month and are currently priced at 211 pence.

Direct Line is a much larger business, however. With over 8m policies in force, it made pre-tax profits of around 330 million pounds in the first nine months of 2012. Its full-year results are due out tomorrow, as it happens.

Considering that Direct Line is currently valued at 3.4 billion pounds, 1 billion pounds for Esure looks to be slightly toppy. But, as a younger business, no doubt Esure would argue it has better growth prospects.

On the dividend front, Direct Line has promised to pay to a chunky dividend of between 50% and 60% of its profits, and is on a prospective yield of 6% for 2013.

Esure says it hopes to pay out 50% of its profits as dividends, with further special dividends on top. Based on results for 2011 and 2012, a further 20% would have been paid out in this way, according to Esure.

Calm down dear, it's just a flotation
Like Direct Line, Esure's flotation will also be available to private investors thorough a number of major share dealing operators. Some 25,000 took part in Direct Line's flotation, and Esure will be hoping its well-known brands can generate similar interest.

One red flag, though, is that little new money is being raised in this flotation. In fact, new funds will only be 50 million pounds, with the remainder of the shares being sold by existing holders, such as Peter Wood and Tosca Penta Investments.

Nevertheless, this could be another interesting income opportunity. For our top idea on the income front right now, though, make sure you get your copy of this�free special report. In it we reveal a share that we believe can�power up your portfolio�for years to come.

Endowed Chair Recognizes Women’s Major Role in U.S. Philanthropy

Women are increasingly important players in American philanthropy—as leaders of charities and decision makers in their families’ giving strategies.

Now, a newly endowed chair at the Indiana University School of Philanthropy will focus research on women’s role in giving, volunteering and leadership of philanthropic organizations.

The university announced last week that the school had received an endowment gift from Houston philanthropists Maureen and Jim Hackett to establish the Eileen Lamb O’Gara Chair in Women’s Philanthropy.

Maureen Hackett currently leads the school’s board of visitors. The endowed chair is named after her mother, described in a statement as an entrepreneurial businesswoman who helped and cared for others.

The endowed chair is the first of its kind in the country, according to the statement. Its holder will conduct research on women’s philanthropy and on gender differences in philanthropy, translate research into improvements in philanthropic practices and develop academic courses in the School of Philanthropy.

The Hacketts’ charitable giving focuses on mental health care advocacy, children’s health and Catholic education, among other causes, the statement said.

Maureen Hackett is an active board member or advisory board member for several charities around the country. Jim Hackett also serves as a volunteer leader of several nonprofit boards. He is executive chairman of Anadarko Petroleum Corp.’s board and former board chairman of the Federal Reserve Bank of Dallas.

The Hacketts’ gift is the first chair to be endowed at the School of Philanthropy during the recently announced public phase of its Moving Philanthropy Forward $100 million special endowment initiative.

The initiative seeks support for endowed faculty chairs, student scholarships, research and training programs for philanthropy and nonprofit professionals. To date, the school has received some $71 million in gifts and pledges, including the Hacketts’ gift, the statement said.

News or Noise: Chinese Milk, Mead Johnson, and Abbott Labs

Selling powdered milk might not sound like an exciting business, but don't say that around executives at Mead Johnson (NYSE: MJN  ) and Abbott Labs (NYSE: ABT  ) . Both companies sport sizable consumer nutrition businesses, and some recent regulation changes in Hong Kong made headlines given their potential impact on powdered milk (e.g., infant formula) sales in the region. Follow along in the video below as Brenton Flynn and Max Macaluso discuss whether this is news that long-term investors should be concerned about, or noise they can ignore.

For some Abbott Labs shareholders, the new year brought with it a new company called AbbVie. Formerly Abbott's branded pharmaceuticals business, shares of the new stock were distributed to investors on Jan. 2. To help investors better understand the situation, The Fool has created a�brand new premium report�on both stocks. Inside, we outline all of the must-know opportunities and risks facing both companies, so make sure to claim this report by�clicking here now.

Should You Buy Next?

LONDON -- I am backing�Next� (LSE: NXT  ) to continue printing steady earnings growth in the coming years.

True, the retail environment is likely to remain sticky for some time, as enduring weakness in the British economy combined with rising inflation continue to cut into consumer spending power.

But Next has a knack for driving profits higher regardless of the economic backdrop, as illustrated over the past few years, and I see no reason for the company not to maintain this trend moving forward.

Sales growth remains in fashion
The clothing chain announced in January's trading update that Next Brand sales rose 3.9% from the beginning of November to Christmas Eve last year.

The firm also reported excellent trade at its splendid "Next Directory"�online and catalogue division, where revenues rose 11.2% from the same period in 2011.

The retailer is taking active steps to expand and enhance this area, both at home and abroad, and will roll out a raft of measures intended to improve service -- this includes implementing more delivery slots and express delivery options.

Attractive shareholder returns
Next also confirmed in its update that last year's share buyback program came in at 241 million pounds, above its target 200 million pounds.

The company's enviable ability to generate oodles of cash should see it boost purchases in 2013, and the firm plans to return up to 250 million pounds to investors through further buybacks.

City analysts expect earnings per share (EPS) growth to remain in double-digit territory over the medium term, following the 17% increase to 254 pence forecast for last year. Results for 2012 are due on March 21.

EPS is forecast to rise 12% to 283 pence in 2013 and a further 10% next year to 312 pence.

In addition, the retailer offers an attractive, if not mind-blowing, dividend policy to sweeten the investment case. The group's policy of steadily increasing its payout is expected to result in yields of 2.4% and 2.6% for 2013 and 2014, respectively, brokers estimate.

Next's shares do not come cheap, however, with a P/E ratio of 14.7 and 13.4 anticipated for this year and next. But I think that its reputation as a solid earnings generator, in both the good and bad times, makes it an attractive pick.

Home in on other sterling stocks
If you already hold shares in Next and are looking for excellent earnings prospects elsewhere,�this special report�highlights the possible FTSE winners identified by�ace fund manager Neil Woodford.�Woodford, the head of U.K. Equities at Invesco Perpetual, has more than 30 years' experience in the industry and boasts an exceptional track record when it comes to selecting stock market stars.

The latest report, compiled by The Motley Fool's crack team of analysts, is totally free and comes with no further obligation.�Click here�now to download your free copy.

link

Buy This Coal Stock if...

Few Americans want anything to do with coal, even outside of Christmas time. It's not the most environmentally friendly fuel, it isn't a thrilling gift to find in your stocking, and it is quickly being replaced by cheaper and cleaner burning natural gas. Overseas, though, it's a completely different story. Take a look at this chart:

SOURCE: Peabody Energy Investor Presentation

As it would appear from that chart, coal's not going to become a fossil anytime soon. In fact, it might be time to add bit of it to your portfolio to profit from this future growth. To help you better determine which coal stock you'll want to buy, I've compiled the top reason why you'd want each company in your portfolio.

...you want easy access to the growth in Asia
Few companies have better access to the growth in demand for coal in Asia than Peabody Energy (NYSE: BTU  ) . Not only does Peabody have coal operations in Australia, which it acquired in 2011, but its U.S.-based operations in the Illinois and Southern Powder River basins are strategically positioned for exporting to these Asian growth markets. Its deal with Kinder Morgan Energy Partners (NYSE: KMP  ) to export coal out of its Houston, Texas and Myrtle Grove, La., terminals is just one more option for this company to access the international marketplace. In my opinion, an investment in Peabody is an investment in the growth of coal usage in Asia.�

...you want to add some natural gas
Knowing that natural gas is taking a bite out of coal's share of the energy pie, CONSOL Energy (NYSE: CNX  ) has decided that if you can't beat them then you join them. The company is investing two dollars to grow its natural gas business for every dollar it spends to grow its coal production. Taking that one step further given its current plan, the company is not planning on spending any money to grow its coal production after 2014.�

Even with the all the money CONSOL is investing in its gas business, the company is still a coal company at heart. It also has a very good export business with excellent rail transportation to send its Pittsburgh seam coal to its 100% owned Baltimore terminal for export. That terminal gives the company access to the world's markets, and it currently exports to four continents including Asia.

...you want a side of metallurgical coal
Like its peers, Alpha Natural Resources (NYSE: ANR  ) gives investors access to the global growth in coal. The difference here is that Alpha is a leading exporter of metallurgical coal, which is used in the production of steel rather than energy generation, like thermal coal. The company is No. 3 globally in terms of export volume, which drove 42% of its revenue. Alpha also has more export capacity than any other producer in the U.S. Even with all those metallurgical coal shipments, Alpha still sells good ole thermal coal, which accounted for 56% of its revenue last year.�

My Foolish take
Of the three, Peabody interests me the most. I love its strategically positioned Australian assets and think that acquisition was a brilliant move. The more I dig into that company the more I like its prospects.

With exports becoming a much bigger part of the domestic coal landscape, I like the fact that Peabody Energy has deals in place to get its cheaper coal from the Powder River and Illinois basins to India, China, and the EU. For investors looking to capitalize on a rebound in the U.S. coal market, The Motley Fool has authored a special new premium report detailing exactly why Peabody Energy is perhaps most worthy of your consideration. Don't miss out on this invaluable resource -- simply click here now to claim your copy today.

Why Silver is "The Best Asset in the World"


We just attended a webinar organized by Eric Sprott and his respected partners John Embry and Rick Rule. These are well-known names within the precious metals community, partly because of their huge success but also because of their physical trusts (ETF’s) which guarantee full backing of the precious metals.

In the introduction, Eric Sprott made the point that the crisis is not over, although media and officials pretend so. There are many events that point to the fact the crisis is not solved. Think about the large Italian bank Monte Paschi which was bailed out because of their derivatives bets, the Dutch SNS Bank which was bailed out a weekend ago, the currency devaluations in Venezuela and Japan, etc. Linking this to gold, Eric Sprott said: “The people in Venezuela that held gold instead of cash or money in the bank did not suffer the devaluation, neither did the people in Japan.”

Think about it, in the case of Venezuela, the people holding gold had an appreciation of more than 40% of their asset just overnight. The currency war has only just begun and there are already so many cases in which gold and silver have served as a true preservation of wealth.

Additionally, Eric Sprott made the point that there is no recovery based on several figures. At the beginning of 2012, the estimated growth was 3.5%. But apart from what was realized in the stock market and some investment products that were issued by the government, what happened to people and the economy shows a totally different picture. In the US, there is a negative real GDP, a 2% tax increase, the highest gasoline prices ever for the time of the year, etc. The treasury department reports on a yearly basis their debt situation (US). “The 2012 figures showed that the present value of known liability went up 4.7 trillion dollar plus a cash deficit of 1.5 trillion dollar results in some 6.9 trillion dollar deficit given a GDP of 16 trillion dollar. There are too much commitments from the US which cannot continue, entitlements will have to be cut in the US.” Those figures do not show any economic recovery.

The Case for Gold

Current economic conditions are fundamentally bullish for gold, as summarized in this quote (Source: Markets at a glance, November 2011):

Gold and silver are not traditional commodities, they are money. Their value lies in their ability to retain wealth in environments marked by negative real interest rates, government intervention, severe economic uncertainty and vulnerable banking institutions.

The physical imports to China in the past two years have been astonishing. It contributes to gold’s bright outlook. Gold follows goes where wealth is created

An interesting slide with the title “Gold’s changing fundamentals” was presented during the seminar. It shows the evolution of physical gold purchases since the beginning of this bull market.

The Case for Silver

Eric Sprott and his partners are convinced that the case for gold is good, but the case for silver is excellent. They consider it “the investment of this decade”, as shown in the next two slides.

Personally, we find the following table really insightful. It compares today’s gold to silver price ratio of around 53 with the geological and historical gold to silver ratio, but also the GLD to SLV dollar based trading. Those ratios really put silver into perspective. The figures tell an interesting story on their own.

Eric Sprott adds to this slide: “Most bullion dealers tell me that half of their business is in gold and half in silver. It means around 50 times more silver is being bought than gold. That cannot go on forever.”

The Case for Platinum & Palladium

It is no secret that Sprott has become a big fan of platinum and palladium. In a very recent infographic they explained the demand / supply fundamentals and the metals’ strong outlook. The next chart show the structural deficit in both platinum and palladium, which is a unique event since this precious metals bull market.

Sources: Johnson Matthey Platinum 2012 Interim Review, CIBC World Markets Equity Research 2012

7 reasons why Sprott funds outshine competition

In closing, one of the last slides listed the benefits of owning the trusts from Sprott:

  • secure storage
  • bullion assets not held with a bank-owned custodian
  • potential tax advantage for certain US investors
  • ability to redeem units for physical bullion
  • investment in physical bullion only
  • fully allocated physical bullion
  • potential to trade at a premium to the net asset value

*Post courtesy of Gold and Silver World.

     

    Bina launches box to analyze genomes; cloud on the way - 12:01 AM

    (gigaom.com) -- Bina Technologies is launching its Bina Box for on-premise genome processing, enabling researchers to quickly and cheaply analyze genomes and give doctors data-driven suggestions for custom treatments.

    Use a genome sequencer to see one person’s DNA profile, and you’ll get 6 billion unique characters, or half a terabyte of data, said Bina co-founder and CEO Narges Bani Asadi. Start processing it to find mutations and variations, and you’ll find yourself with more than one terabyte. It’s not small data. As the price of sequencing a genome keeps dropping, scientists will want to do this more and more. It’s a big data problem, Bani Asadi said. The company wants to solve the problem on premises, with hardware and software.

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    The Bina Box will run on “high-end Intel processors and very high-bandwidth memory,” Bani Asadi said, and can scale out with additional Bina Boxes as customers processing needs change. Price depends on how much processing customers have in mind. If a customer wants to process 100 samples a month, for instance, it would cost $12,500 per month, or $125 per sample, said Mark Sutherland, Bina’s senior vice president of business development.

    A Bina Cloud to tie in with the Bina Box will come later this year. The Bina Cloud will host just the needle of genomic data isolated from among the haystack of the entire genome, and it will enable scientists to aggregate many genomes, run data visualizations and collaborate to derive big-picture insights. Early customers are already using a pilot version of the cloud.

    The box offering contributes more proof of the notion that, for certain uses, public clouds might not make sense, not yet anyway. (It remains a largely popular perspective in financial services, as my colleague Barb Darrow reported a couple of months ago.) The Bina Box, for its part, “provides security that on-premise solutions have, versus cloud solutions, (which) sometimes people in this industry are not completely ready to move into,” Bani Asadi said. Big pharmaceutical companies are a perfect example, as a breach could hamper product development using genomes. Aside from security, there’s the matter of performance. “It’s impossible to send (half a terabyte of raw data from a sequencer) to the cloud easily,” Bani Asadi said.

    Meanwhile, other genomics-focused startups, including DNAnexus and Appistry, are eschewing hardware and relying exclusively on cloud resources.

    Whether hardware is involved or not, as my colleague Derrick Harris mentioned when he wrote about Bina last year, it’s clear that the rise of big genomics inherently equates to a rise in data.

    The practice of merging life sciences and other industries with big data will come up in conversation when Ayasdi CEO Gurjeet Singh hits the stage at GigaOM’s Structure:Data conference on March 20 in New York.

    Related research and analysis from GigaOM Pro:
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    • Health care and big data in 2012
    • The importance of putting the U and I in visualization
    • AWS Storage Gateway jolts cloud-storage ecosystem

    Top Stocks To Buy For 2/27/2013-4

    iShares Gold Trust(ETF) NYSE:IAU decreased 0.20% closed at $13.52 and its overall trading volume was 2.39 million shares during the last session. The trailing twelve month return on investment remained 3.36% while its earning per share reached $0.29.


    Franklin Resources, Inc. NYSE:BEN declined 1.72% closed at $109.97 and its overall trading volume was 2.10 million shares during the last session. The trailing twelve month return on investment remained 15.82% while its earning per share reached $6.33.

    Legg Mason, Inc. NYSE:LM plunged 1.06% closed at $37.18 and its overall trading volume was 1.33 million shares during the last session. The trailing twelve month return on investment remained 2.97% while its earning per share reached $1.46.

    Federated Investors, Inc. NYSE:FII plunged 0.07% closed at $26.81 and its overall trading volume was 1.21 million shares during the last session. The trailing twelve month return on investment remained 25.00% while its earning per share reached $1.77.

    SPDR S&P Metals and Mining (ETF) NYSE:XME decreased 0.57% closed at $67.86 and its overall trading volume was 1.15 million shares during the last session. The trailing twelve month return on investment remained 18.59% while its earning per share reached $5.45.

     

    So long, Morgan Keegan

    Raymond James Financial Inc. has completed the integration of Morgan Keegan advisers and their clients to the company's technology platform ten months after closing on the acquisition of the brokerage. It simultaneously announced the retirement of the Morgan Keegan & Co. Inc. brand a year ahead of expectations.

    “Morgan Keegan [employees] were rightfully proud of their heritage and brand, but they have approached the opportunity to be Raymond James —one firm, with excitement,” said Tash Elwyn, president of the private- client group at Raymond James & Associates.

    In contrast to troublesome tech integrations seen in large brokerage mergers — notably Morgan Stanley's acquisition of Smith Barney — the conversion of roughly 900 Morgan Keegan advisers to the Raymond James platform appears to have gone smoothly.

    “Having been through a number of large and complex integrations, I can honestly say this was a far superior experience,” Bella Allaire, executive vice president for technology and operations at Raymond James, said in a statement.

    The brokerage's management said the company had retained about 95% of the revenue associated with Morgan Keegan advisers who were offered retention packages after the acquisition. Raymond James acquired Morgan Keegan from Regions Financial Corp. last year. More than a dozen senior executives at Morgan Keegan, including former chief executive John Carson, also joined the company.

    Mr. Elwyn credits a technology staff of 100 specialists for the training and smooth transition of Morgan Keegan advisers. Along the way, the company managed to incorporate some parts of Morgan Keegan's systems, add new capabilities and implement enhancements to both adviser and investor access to the system, he said.

    “We had a phenomenal year converting Morgan Keegan advisers to a new platform and deploying new technology for existing advisers,” Mr. Elwyn said.

    With the transfer to the Raymond James platform, legacy Morgan Keegan advisers have dropped the name of their old firm. Raymond James initially expected to keep the Morgan Keegan name on the fixed-income side of its business for another year. The brokerage brought a substantial municipal bond underwriting and trading business to Raymond James. According to the company, however, Morgan Keegan executives asked for the brand to be retired sooner.

    RadioShack Goes Negative

    RadioShack (NYSE: RSH  ) reported earnings on Feb. 26. Here are the numbers you need to know.

    The 10-second takeaway
    For the quarter ended Dec. 31 (Q4), RadioShack missed estimates on revenues and missed expectations on earnings per share.

    Compared to the prior-year quarter, revenue shrank. Non-GAAP earnings per share dropped to a loss. GAAP earnings per share contracted to a loss.

    Margins dropped across the board.

    Revenue details
    RadioShack recorded revenue of $1.30 billion. The 19 analysts polled by S&P Capital IQ predicted sales of $1.36 billion on the same basis. GAAP reported sales were 6.5% lower than the prior-year quarter's $1.39 billion.

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

    EPS details
    EPS came in at -$0.60. The 19 earnings estimates compiled by S&P Capital IQ predicted -$0.05 per share. Non-GAAP EPS were -$0.60 for Q4 against $0.12 per share for the prior-year quarter. GAAP EPS were -$0.63 for Q4 against $0.12 per share for the prior-year quarter.

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

    Margin details
    For the quarter, gross margin was 34.5%, 30 basis points worse than the prior-year quarter. Operating margin was 1.6%, 70 basis points worse than the prior-year quarter. Net margin was -4.9%, 580 basis points worse than the prior-year quarter.

    Looking ahead
    Next quarter's average estimate for revenue is $1.01 billion. On the bottom line, the average EPS estimate is -$0.06.

    Next year's average estimate for revenue is $4.22 billion. The average EPS estimate is -$0.39.

    Investor sentiment
    The stock has a one-star rating (out of five) at Motley Fool CAPS, with 443 members out of 891 rating the stock outperform, and 448 members rating it underperform. Among 236 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 103 give RadioShack a green thumbs-up, and 133 give it a red thumbs-down.

    Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on RadioShack is hold, with an average price target of $2.26.

    Is RadioShack the best tech stock for you? You may be missing something obvious. Check out the semiconductor company that Motley Fool analysts expect to lead "The Next Trillion-dollar Revolution." Click here for instant access to this free report.

    • Add RadioShack to My Watchlist.

    Tuesday, February 26, 2013

    Why A.M. Castle’s Shares Dropped

    Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

    What: Shares of A.M. Castle & Co. (NYSE: CAS  ) fell as much as 21.5% briefly this morning after recovering to a slight decline for the day.

    So what: The company came out with earnings this morning, which is why there was a big fuss. Revenues fell 2.9% to $274 million and loss per share was $0.24, both well below estimates. This created the conditions for a strange open where 700 shares�traded hands at $13.38 in the first minute the stock traded before shares popped back to normal. �

    Now what: Once you look past the strange trading it's surprising the stock hasn't fallen further today. Analysts had expected a $0.10 per share so the quarterly performance was far worse than expected. I don't see any reason to buy today considering the deterioration in results.

    Interested in more info on A.M. Castle? Add it to your watchlist by clicking here.

    Expeditors International of Washington Increases Sales but Misses Estimates on Earnings

    Expeditors International of Washington (Nasdaq: EXPD  ) reported earnings on Feb. 26. Here are the numbers you need to know.

    The 10-second takeaway
    For the quarter ended Dec. 31 (Q4), Expeditors International of Washington beat slightly on revenues and missed estimates on earnings per share.

    Compared to the prior-year quarter, revenue increased slightly. GAAP earnings per share shrank.

    Gross margins grew, operating margins contracted, net margins dropped.

    Revenue details
    Expeditors International of Washington logged revenue of $1.53 billion. The 15 analysts polled by S&P Capital IQ wanted to see net sales of $1.51 billion on the same basis. GAAP reported sales were the same as the prior-year quarter's.

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

    EPS details
    EPS came in at $0.40. The 19 earnings estimates compiled by S&P Capital IQ forecast $0.43 per share. GAAP EPS of $0.40 for Q4 were 7.0% lower than the prior-year quarter's $0.43 per share.

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

    Margin details
    For the quarter, gross margin was 28.3%, much better than the prior-year quarter. Operating margin was 8.4%, 190 basis points worse than the prior-year quarter. Net margin was 5.5%, 70 basis points worse than the prior-year quarter.

    Looking ahead
    Next quarter's average estimate for revenue is $1.45 billion. On the bottom line, the average EPS estimate is $0.42.

    Next year's average estimate for revenue is $6.36 billion. The average EPS estimate is $1.85.

    Investor sentiment
    The stock has a five-star rating (out of five) at Motley Fool CAPS, with 511 members out of 533 rating the stock outperform, and 22 members rating it underperform. Among 173 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 170 give Expeditors International of Washington a green thumbs-up, and three give it a red thumbs-down.

    Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Expeditors International of Washington is outperform, with an average price target of $43.46.

    Looking for alternatives to Expeditors International of Washington? It takes more than great companies to build a fortune for the future. Learn the basic financial habits of millionaires next door and get focused stock ideas in our free report, "3 Stocks That Will Help You Retire Rich." Click here for instant access to this free report.

    • Add Expeditors International of Washington to My Watchlist.

    Kadant Beats Expectations But Takes A Step Back Anyway

    Kadant (NYSE: KAI  ) reported earnings on Feb. 26. Here are the numbers you need to know.

    The 10-second takeaway
    For the quarter ended Dec. 29 (Q4), Kadant missed estimates on revenues and beat expectations on earnings per share.

    Compared to the prior-year quarter, revenue dropped significantly. Non-GAAP earnings per share dropped significantly. GAAP earnings per share dropped significantly.

    Gross margins grew, operating margins contracted, net margins expanded.

    Revenue details
    Kadant logged revenue of $78.1 million. The two analysts polled by S&P Capital IQ predicted sales of $85.8 million on the same basis. GAAP reported sales were 20% lower than the prior-year quarter's $97.0 million.

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

    EPS details
    EPS came in at $0.44. The three earnings estimates compiled by S&P Capital IQ predicted $0.40 per share. Non-GAAP EPS of $0.44 for Q4 were 25% lower than the prior-year quarter's $0.59 per share. (The prior-year quarter included $0.10 per share in earnings from discontinued operations.) GAAP EPS of $0.84 for Q4 were 16% lower than the prior-year quarter's $1.00 per share. (The prior-year quarter included $0.10 per share in earnings from discontinued operations.)

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

    Margin details
    For the quarter, gross margin was 43.0%, 440 basis points better than the prior-year quarter. Operating margin was 8.6%, 120 basis points worse than the prior-year quarter. Net margin was 12.3%, 10 basis points better than the prior-year quarter.

    Looking ahead
    Next quarter's average estimate for revenue is $81.3 million. On the bottom line, the average EPS estimate is $0.56.

    Next year's average estimate for revenue is $349.3 million. The average EPS estimate is $2.40.

    Investor sentiment
    The stock has a three-star rating (out of five) at Motley Fool CAPS, with 167 members out of 180 rating the stock outperform, and 13 members rating it underperform. Among 57 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 55 give Kadant a green thumbs-up, and two give it a red thumbs-down.

    Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Kadant is outperform, with an average price target of $30.67.

    Looking for alternatives to Kadant? It takes more than great companies to build a fortune for the future. Learn the basic financial habits of millionaires next door and get focused stock ideas in our free report, "3 Stocks That Will Help You Retire Rich." Click here for instant access to this free report.

    • Add Kadant to My Watchlist.

    What to Expect from Cymer

    Cymer (Nasdaq: CYMI  ) is expected to report Q4 earnings around Feb. 2. Here's what Wall Street wants to see:

    The 10-second takeaway
    Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Cymer's revenues will wither -10.0% and EPS will wane -92.5%.

    The average estimate for revenue is $137.6 million. On the bottom line, the average EPS estimate is $0.03.

    Revenue details
    Last quarter, Cymer logged revenue of $131.5 million. GAAP reported sales were 2.2% higher than the prior-year quarter's $128.7 million.

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

    EPS details
    Last quarter, EPS came in at $0.31. GAAP EPS of $0.31 for Q3 were 14% lower than the prior-year quarter's $0.36 per share.

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

    Recent performance
    For the preceding quarter, gross margin was 54.6%, 400 basis points better than the prior-year quarter. Operating margin was 6.9%, 350 basis points worse than the prior-year quarter. Net margin was 7.5%, 120 basis points worse than the prior-year quarter.

    Looking ahead

    The full year's average estimate for revenue is $573.3 million. The average EPS estimate is $1.20.

    Investor sentiment
    The stock has a two-star rating (out of five) at Motley Fool CAPS, with 99 members out of 122 rating the stock outperform, and 23 members rating it underperform. Among 38 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 36 give Cymer a green thumbs-up, and two give it a red thumbs-down.

    Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Cymer is hold, with an average price target of $54.00.

    Is Cymer the best semiconductor stock for you? You may be missing something obvious. Check out the semiconductor company that Motley Fool analysts expect to lead "The Next Trillion-dollar Revolution." Click here for instant access to this free report.

    • Add Cymer to My Watchlist.

    Can Google Trump iWatch With Glass?

    Wearable technology is emerging as the next frontier in advanced consumer electronics. For the past several weeks, speculation has swirled around the potential of an Apple (NASDAQ: AAPL  ) iWatch to be the next big thing from Cupertino. Not to be outdone, Google (NASDAQ: GOOG  ) recently began taking applications�to create a select group of testers that will be allowed to experience Glass, the new wearable glasses-like interface that is expected to be rolled out in 2013. While both of these products are still "developmental," Glass appears to be further along in the process. Ultimately, there is likely enough differentiation between these products that both companies can capitalize, but you will benefit from watching to see if either is adopted more quickly.

    The Apple iWatch
    While precise specifications (or even the confirmed existence) of an iWatch remain somewhat elusive, recent patent filings by Apple suggest that the product has been given some thought. The application likens the potential new device to the form factor of a "slap bracelet" from the '80s or '90s. Others have not embraced this guess, preferring to focus on the spiral design -- one that Steve Jobs had embraced near the end of his life. The reality is that there is no reasonable way to predict what the device will look like as, to the best of everyone's knowledge, it has yet to be invented.

    Equally elusive is the functionality that may or may not be included. Perhaps the iWatch will serve as a second screen for one's iPhone; perhaps it will carry its own cellular receiver and be able to operate independently of any other device; or perhaps the new devices will blend functionality and form in some way yet to be conceived. In any event, there is an appetite for this type of wearable tech. Fitness watches, including Google's Motorola MOTOACTV, are projected to breach $1 billion in sales this year. An offering from Apple with enhanced functionality and web browsing capability could catapult this market into the stratosphere.

    One question that seems to continue to go unasked is what is Google working on in this segment. The MOTOACTV is arguably the most advanced device of its kind on the market. It can deliver text messages, social media posts, and even route calls from your Android smartphone right to your wrist. Is there some reason to believe that Google will simply concede this segment to Apple, even given its apparent head start? Apple shareholders should be excited about what is coming from the company in this form factor, but should not assume the iWatch will be the only game in town.

    Google Glass
    Google has already rolled out videos and advertisements for Glass on its site. As far as functionality, the device appears to be capable of taking pictures and videos; displaying maps, webpages, and other media on the translucent display; connecting calls; and displaying messages. All this can be accomplished with minimal tactile interaction, instead relying on voice commands.

    Initial indications suggest that the device will come in five colors, be lightweight and very durable, and even available for sale this year -- pending the results of the upcoming beta testing. Critics are already voicing concerns over such items as privacy and surveillance capabilities. If you can now take a picture or video with no visible signs of what you are doing, does that make privacy harder to protect? Likewise, if Glass allows the user to stream what he or she is seeing through the device to the Internet, how can you ensure that a third party or government is not accessing or monitoring the same information? The ability for distraction is another major hurdle the company will need to address.

    From a shareholder's perspective, the search and ad options are endless. Imagine not only the ability to pop up ads right in front of potential consumers' faces, but also if Google could passively collect data on what consumers look at in a store. The ability of the company to target ads based on what you have actually looked at in the past would be a pretty powerful tool. Those pesky privacy issues, of course, resurface, but attitudes about what privacy means seem to be changing.

    Is it a contest?
    There are two ways to look at the pending release of these two types of wearable tech. On the one hand, they are so fundamentally different that both companies are likely to see significant benefits. The iWatch will likely have a much lower price point, becoming a mainstream option very quickly. Glass, while arguably a far bigger advance, will likely remain an option for only the select few in the initial few releases. In a strange role reversal, Google is offering the pricey premium gadget while Apple is showing up with the advance for everyone. In both cases, the stocks should benefit from these advances as they come closer to wide release.

    It's more important than ever to understand each piece of Google's sprawling empire. In The Motley Fool's new premium research report on Google, we break down the risks and potential rewards for Google investors. Simply click here now to unlock your copy of this invaluable resource, and you'll receive a bonus year's worth of key updates and expert guidance as news continues to develop.

    Chicago Bridge & Iron Earnings Up Next

    Chicago Bridge & Iron (NYSE: CBI  ) is expected to report Q4 earnings on Feb. 28. Here's what Wall Street wants to see:

    The 10-second takeaway
    Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Chicago Bridge & Iron's revenues will expand 18.2% and EPS will expand 18.6%.

    The average estimate for revenue is $1.48 billion. On the bottom line, the average EPS estimate is $0.83.

    Revenue details
    Last quarter, Chicago Bridge & Iron chalked up revenue of $1.45 billion. GAAP reported sales were 15% higher than the prior-year quarter's $1.26 billion.

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

    EPS details
    Last quarter, EPS came in at $0.82. GAAP EPS of $0.82 for Q3 were 14% higher than the prior-year quarter's $0.72 per share.

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

    Recent performance
    For the preceding quarter, gross margin was 13.1%, 140 basis points better than the prior-year quarter. Operating margin was 9.1%, 190 basis points better than the prior-year quarter. Net margin was 5.5%, 20 basis points worse than the prior-year quarter.

    Looking ahead

    The full year's average estimate for revenue is $5.44 billion. The average EPS estimate is $3.00.

    Investor sentiment
    The stock has a five-star rating (out of five) at Motley Fool CAPS, with 1,335 members out of 1,365 rating the stock outperform, and 30 members rating it underperform. Among 363 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 355 give Chicago Bridge & Iron a green thumbs-up, and eight give it a red thumbs-down.

    Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Chicago Bridge & Iron is outperform, with an average price target of $48.50.

    If you're interested in companies like Chicago Bridge & Iron, you might want to check out the jaw-dropping technology that's about to put 100 million Chinese factory workers out on the street � and the 3 companies that control it. We'll tell you all about them in "The Future is Made in America." Click here for instant access to this free report.

    • Add Chicago Bridge & Iron to My Watchlist.

    The Postwar Bull Market Boom

    What drives a bull market? How does it get started, and how does it end? What happens to stock fundamentals during these bullish times? There are no ironclad rules that can tell you when a bull market begins and ends, but there are some similarities that all bull markets share. Understanding the way bull markets work can help you become a better and more informed investor -- and if you're the inquisitive sort, you're also bound to find some interesting parallels between otherwise unrelated market cycles. History may not repeat, but it often rhymes.

    Here, in the second of a three-part series, you'll find an overview of some of the most notable Depression-era and postwar bull markets in the history of the Dow Jones Industrial Average (DJINDICES: ^DJI  ) . Each bull market overview includes some basic background data, some of the market's major fundamental changes during those periods, and a brief description of the economic, social, technological, financial, and political forces at work. When you've finished reading, don't forget to check out the other parts of this series, as well as the companion series to this one that highlights the Dow's many bear markets.

    1932-1937: Roosevelt's rebound

    • Began (starting price): July 8, 1932 (41.22)
    • Ended (final price): March 10, 1937 (194.4)
    • Number of trading days: 1,161
    • Total percentage gain and average gain per trading day: 372%, 0.32% per day
    • Volatility (i.e., average daily price change): 1.27%
    • CAPE, initial and final: 5.8 to 22 (278% increase)

    This rebound began less than a week after future President Franklin D. Roosevelt's acceptance speech at the Democratic nominating convention in 1932. It was both incredibly powerful and incredibly volatile, driven in part by the Roosevelt administration's "bold, persistent experimentation" with both regulation and economic stimulus. It was also marred by two corrections strong enough to be termed bear markets in their own right: a 37% decline from September 1932 to February 1933 as investors awaited the Roosevelt presidency and a 22% decline from February through July of 1934.

    1938-1939: Roosevelt's second rebound

    • Began (starting price): March 31, 1938 (98.95)
    • Ended (final price): Nov. 9, 1938 (158.08)
    • Number of trading days: 154
    • Total percentage gain and average gain per trading day: 60%, 0.39% per day
    • Volatility: 1.32%
    • CAPE, initial and final: 11.8 to 16.1 (37% increase)

    The Dow shrugged off war worries and made a modest recovery from a 1937 recession within the Great Depression period. Industrial output and factory employment both increased as the government resumed its deficit spending, which it had temporarily interrupted during the bear market preceding this rebound.

    1939: Prewar bounce

    • Began (starting price): April 11, 1939 (123.75)
    • Ended (final price): Sept. 12, 1939 (155.92)
    • Number of trading days: 108
    • Total percentage gain and average gain per trading day: 26%, 0.24% per day
    • Volatility: 1.01%
    • CAPE, initial and final: 13.9 to 16.5 (18% increase)

    Most of the gains in this baby bull took place during its final week as the Dow rose from a 9% gain to its final 26% gain in the span of six trading days. This came in response to the German blitz of Poland, which triggered war-bride optimism toward industrial stocks similar to what had been seen during World War I.

    1942-1946: World War II boom

    • Began (starting price): April 28, 1942 (92.92)
    • Ended (final price): May 29, 1946 (212.5)
    • Number of trading days: 1,022
    • Total percentage gain and average gain per trading day: 129%, 0.13% per day
    • Volatility (average daily price change): 0.49%
    • CAPE, initial and final: 8.5 to 15.8 (85% increase)

    America's entry into World War II produced the most comprehensive industrial shift in history. American automakers were conscripted to build a staggering amount of war machines and materiel. Steelmakers and shipbuilders were kept going at maximum capacity. The singular focus on war production (and the conscription of millions of America's young men) brought unemployment down to negligible levels. U.S. debt to GDP reached its highest point in history as the government engaged in the largest stimulus program ever seen. There weren't a lot of investors, but those who remained were far more interested in buying, despite a 27% reduction in real corporate earnings as a consequence of widespread federal contracts, mandates, and business restrictions.

    1949-1956: Postwar boom

    • Began (starting price): June 13, 1949 (161.6)
    • Ended (final price): April 6, 1956 (521.05)
    • Number of trading days: 1,708
    • Total percentage gain and average gain per trading day: 222%, 0.13% per day
    • Volatility: 0.48%
    • CAPE, initial and final: 9.1 to 19.4 (114% increase)

    A generation's distrust of the stock market finally melted away during this period of dramatic economic expansion. The devastated European continent provided little competition, but it offered great export potential for American industrial concerns. The baby boom was kicking into full gear as the Greatest Generation formed families and entered their prime earning years. The consumer economy that took root in the Roaring '20s reached new heights as a recalibrated manufacturing sector cranked out cars and gizmos, rather than tanks and aircraft.

    1957-1961: Return of the retail investor

    • Began (and starting price): Oct. 22, 1957 (419.79)
    • Ended (and final price): Nov. 15, 1961 (734.34)
    • Number of trading days: 1,025
    • Total percentage gain and average gain per trading day: 75%, 0.07% per day
    • Volatility: 0.51%
    • CAPE, initial and final: 13.7 to 21.9 (59% increase)

    A severely weakened investment industry began its earnest recovery in the latter half of the 1950s. Over the course of this decade, employment in the securities industry doubled, investing was again heavily touted in public advertisements, and an estimated 10 million new investors rushed into the market. By the end of this bull market, $1,000 invested in U.S. Steel (NYSE: X  ) in 1949 had grown to $7,000, and the same amount invested at the same time in IBM (NYSE: IBM  ) had grown to $26,300. The massive National Interstate and Defense Highways Act became law in 1956, initiating the radical restructure of middle-class American life around the suburbs. In many ways, this was a continuation of the previous bull market, with many of the same economic forces at work.

    1962-1966: A New Frontier for mutual funds

    • Began (starting price): June 26, 1962 (535.76)
    • Ended (final price): Feb. 9, 1966 (995.15)
    • Number of trading days: 914
    • Total percentage gain and average gain per trading day: 86%, 0.09% per day
    • Volatility: 0.41%
    • CAPE, initial and final: 17.1 to 23.7 (38% increase)

    Like the Eisenhower bull market, this bull market continued the postwar strength. Begun during President John F. Kennedy's term, it continued growing after his assassination on the back of tax cuts and the rapid expansion of the mutual-fund industry, which grew to $35 billion during this period from just $1 billion after the war. Mainframe computing companies gained prominence during this period, planting the seeds for the first computing bubble. Warren Buffett gained control of Berkshire Hathaway (NYSE: BRK-B  ) during this period and achieved spectacular growth at its helm during the secular bear market that began after the bull run ended.

    Putting it all together
    Investors entered this period with fear and ended it in a state of rapturous bullishness. The most destructive war in world history reshaped the global map of power. America's manufacturing infrastructure reached its peak during this period, but few could have expected such an outcome in 1932. The public's attitude toward the stock market made a complete turnaround, which helped to create the modern securities and investing industries.

    Want to learn more? Read about the chaotic bear markets that shook the Great Depression era and the mild corrections of the postwar period. Or continue to the final part of the bull market series to read about the growth that has brought us to the present day. You'll find the links below.

    Want to learn more about market cycles? You can find the rest of the series here:

    • An Illustrated Guide to Bull and Bear Markets
    • What Is a Bull Market?
    • Bull Markets in Modern Times
    • What Is a Bear Market?
    • Recession, War, and Bear Markets
    • Bear Markets in Modern Times
    • The Complete Illustrated Guide to Secular Market Cycles

    AUTHOR'S NOTE: the cyclically adjusted P/E referenced throughout is compiled by Yale economist Robert Shiller from a historical S&P 500 composite. The Dow is used in place of this composite because it offers precise daily closing dates and prices, rather than the monthly results used in Shiller's calculations. The difference between these two indexes from the Dow's creation in 1896, on an inflation-adjusted basis, is less than 3%. CAPE numbers are from the nearest month to a given bull market's beginning and end.

    Whether you're anticipating a bear market or expecting a long bull run ahead, you can find some of the market's best stocks in our Foolish list of "Nine Rock-Solid Dividend Stocks." Like the Nifty 50 of the '60s and '70s, these Nifty Nine are stable and well-run, with a long history of growing dividend payments. No matter where the market goes, you'll be well-prepared for the future if you invest in these stocks. Click here for the information you need -- it's completely free.

    Monday, February 25, 2013

    How to Turn the Publishing Industry Upside Down

    The video below is taken from an interview that Motley Fool analyst Brendan Byrnes recently had with Seth Godin, author of The Icarus Deception. Godin is also a talented public speaker, marketing guru, blogger, entrepreneur, and respected thought leader.

    Seth's forward-thinking and contrarian views are critical considerations for finding success in life, business, and investing.

    It's the same approach our own chief investment officer, Andy Cross, took when selecting The Motley Fool's Top Stock for 2013. I invite you to uncover his market-beating thinking in this new free report. Just click here now for instant access.�

    Brendan Byrnes: Hey folks, I'm Brendan Byrnes and I'm joined today by Seth Godin, the author of The Icarus Deception. First of all, thank you so much for your time.

    Seth Godin: Pleasure.

    Brendan: Before we get to the book, I wanted to ask you about an interesting way that you raised money for this book, or what you called "organizing your readers" for the book. How did you do that?

    Godin: A lot of people have heard about this new service called Kickstarter. The idea, apparently, is that you can go to folks and say, "I'm an artist. I want to make something. Put up some money so I can get it made."

    What really happens is, most of the public is willing to do it if they get a prize in exchange, so you can say, "You'll get a copy of my vinyl LP," "I'll come to your house and put on a concert." Different amounts of money get you different prizes.

    I saw it growing and resonating with people, but what I realized was it's very difficult to get a stranger to show up and say, "Yeah, I'm going to fund your work." I also knew that the hardest part of book publishing is the first 10,000 copies. Getting the first 10,000 people to touch the book is really hard, but then if the book is good, it will spread.

    I went to my readers and I said, "I'm doing this Kickstarter. There's all these different prizes. The cheapest price is $4. You can get a preview of the book when it's done, digitally, and the most expensive prize is hundreds of dollars and you'll get eight copies of this and a big copy of that, and this..."

    In four hours, I hit my goal and in three days we sold out of everything. People say, "Wow, that's an overnight success." Well, no. It took seven years of building an audience that wanted to participate.

    I then spent every penny I got, plus a little extra, to make the stuff. I came out with four books at the same time, which was thrilling to do, but from a business point of view what's interesting is I was making books for my readers, as opposed to trying to find readers for my books. That turns the entire industry upside down.

    link

    Herbalife tangle shows how twisted the stock game is

    What are we to make of the ability of hedge-fund managers and other influential investors to manipulate the market with impunity and make millions of dollars doing it?

    The question was raised anew on Feb. 16 after news broke that Daniel Loeb of Third Point LLC had sold a portion of his 8.9 million shares in Herbalife Ltd. (HLF) Loeb's action, while perfectly legal under current law, deserves a thorough review by the Securities and Exchange Commission -- which is supposed to protect small investors in the capital markets -- and its next likely chairman, Mary Jo White.

    Loeb, of course, is one of the brilliant young (and not-so- young) investors who have squared off against one another in the battle over Herbalife, the purveyor of weight-loss and other nutritional products through a network of independent distributors. Loeb came in on the long side of the fight, along with billionaire Carl Icahn, who announced on Valentine's Day that he owns almost 13 percent of Herbalife's existing shares. They are squared off against Bill Ackman, whose Pershing Square Capital Management LP announced on Dec. 20 that it had amassed a $1 billion short position in Herbalife, which Ackman called an illegal pyramid scheme.

    Every time one of these respected hedge-fund managers or takeover kings goes on cable TV and explains his latest thinking or actions -- a growing addiction, it seems -- Herbalife's stock jumps or dives like a trained seal.

    Stock's Rise

    That was especially true on Feb. 15, the day after Icahn announced in a filing with the SEC that he had amassed more than 14 million Herbalife shares and intended to meet with the company's management to discuss “business and strategic alternatives to enhance shareholder value, such as a recapitalization or a going-private transaction.” The stock soared 20 percent on the news in after-hours trading on Feb. 14, according to CNBC.

    The other shoe dropped Feb. 16, when “sources” confirmed to CNBC and the New York Post that Loeb had sold a portion of the Herbalife stock he owned into the Icahn-ignited rally. (Third Point eventually confirmed the sale.)

    The problem with that, in my mind, arises from Loeb's own much-heralded Jan. 9 announcement -- in a filing with the SEC and in a letter to his investors -- that he had acquired 8.9 million Herbalife shares, or 8.24 percent of the market. It was a response, he said, to the “panicked selling” that followed Ackman's Dec. 20 announcement of his short position, which drove Herbalife stock into the mid-$20 per share.

    In his letter to his Third Point investors, Loeb described the company's robust financial performance, including earnings per share that had increased “approximately 20-50 percent each year since 2004,” noting that “this type of steady non- cyclical growth is hard to find.” He rejected Ackman's claim that Herbalife “exploited and harmed” its “loyal customer and distributor base” and its products were “commodities sold at inflated prices” and not supported by sufficient advertising or research and development.

    Rather, Loeb wrote, the stock could easily return to its April 2012 price of about $70 per share (it was then at about $39). At a minimum, he wrote, the stock should be valued at $55 to $68 per share, offering Third Point “40-70% upside from here and making the company a compelling long investment.” Over the next few days, the Herbalife stock rose 10 percent.

    Taking Advantage

    What I question is whether, after making a huge public commotion about buying the Herbalife stock as a “compelling long investment,” it is then ethical to sell a big chunk of that stock at a price far below what you told investors it was really worth. Should it even be legal? Isn't this just taking unfair advantage of your ability to move markets?

    Securities laws exist to prevent “market manipulation” of the “pump and dump” variety, whereby an investor publicly announces a large stake in a company, the market moves up on the announcement, and then the investor sells the position, or a portion of it after the market moves.

    “These activist investors must be careful NOT to cross the line of creating a pump and dump, which is illegal,” Ken Luskin, the president of Intrinsic Value Asset Management Inc. in Santa Monica, California, wrote in an e-mail to me after my recent column about hedge-fund investor David Einhorn's public comments on Apple Inc. “So, if these activists do quickly sell/close out their position after talking up the merits, they could be accused of 'market manipulation.'”

    No doubt Third Point would hotly dispute that it manipulated the market, especially because Loeb still owns some Herbalife stock -- although he won't say how much -- and is free to increase or decrease his stake in the future. I can easily imagine him saying that his decision to sell some of his Herbalife stock is evidence that he's not locked into a zealous viewpoint and is simply trying to make money for his investors, and that there is no worry on his end that the SEC might consider his behavior a violation of pump and dump laws.

    And that, to me, is a problem. Because the only people who end up losing in situations like this are the very ones the SEC is supposed to be protecting -- the little guys.

    --Bloomberg News--

    (William D. Cohan, the author of “Money and Power: How Goldman Sachs Came to Rule the World,” is a Bloomberg View columnist. He was formerly an investment banker at Lazard Freres, Merrill Lynch and JPMorgan Chase. The opinions expressed are his own.)

    Will the snake-bite effect hurt housing?

    Since the Fall Melt-Up of 2011 began, homebuilders have been on absolute fire. After being a drag on the economy and deflationary headwind for many years following 2006, a recovery seemingly out of nowhere began to take hold.

    Efforts by the Federal Reserve to lower longer-duration rates through a combination of Operation Twist and quantitative easing sent mortgage rates to record lows with the goal of pushing demand and prices up. By targeting the wealth effect, the hope all along has been that rising asset values would cause a pickup in consumer spending, helping to shift the economy into accelerated growth.

    "I like to keep a bottle of stimulant handy in case I see a snake, which I also keep handy."

    �W. C. Fields

    In theory, there is some logic to this. With housing inventory at its lowest since 1999, it appears to no longer be a buyer's market. Many have argued that another major trend higher in housing is now likely. While this certainly is possible, I question whether the Fed's efforts can counter the memory of the housing bust in terms of making a prolonged period of strength in housing likely.

    Oftentimes, when an asset class goes through a bubble, it tends to exhibit lackluster performance afterward. Much of this can be attributed to something in behavioral finance known as the "snake-bite effect." Once bitten, twice shy means that money rarely chases that which caused major losses as the memory of that loss remains too fresh. Bubbles in one asset class don't tend to reoccur because of this, at least not until a new generation of money with no memory of the past calls the shots.

    So while housing does appear to be recovering, the pace of strength might not continue to be as strong as many in the financial media seem to think.

    Take a look below at the price ratio of the SPDR S&P Homebuilders Index ETF XHB �relative to the S&P 500 SPY . As a reminder, a rising price ratio means the numerator/XHB is outperforming (up more/down less) the denominator/SPY. For a larger chart, visit https://twitter.com/pensionpartners/status/305862599910764545/photo/1.

    It has been an incredible run of leadership since late 2011, and outperformance in homebuilder stocks was clearly an indicator of U.S. strength, with the benefit of hindsight in the face of a global growth slowdown.

    Notice the far right of the chart, where a breakdown appears to have occurred. A lot of good news may be discounted now in homebuilder stocks, even though inventory is so low. With nearly everyone apparently now of the belief that interest rates will only go higher, there might be a cap on strength in the near-term.

    I do wonder if this becomes a trend, however. If homebuilders are on the verge of weakening in a meaningful way, it would seem to be curious timing given the various other inter-market trends I have been highlighting since Jan. 25 signaling that a deflation pulse is beating with the idea that a potential correction is coming for risk assets.

    On CNBC Friday, I re-iterated the idea that behaviorally it does look like some kind of a correction is happening. With the sudden weakness in homebuilders, it would make sense that any kind of market volatility results in money selling off the winners aggressively to book profits.

    Our ATAC models used for managing our mutual fund and separate accounts have continued to be defensive, with no changes in terms of staying in bonds. Weakness in homebuilders may be warning that rates have gone up a bit too far too fast in the near-term, which could then in turn actually mean rates fall from these levels.

    This could end up being a very telling time for the industry. Was the move simply a well-deserved major bounce following years of weakness due to central bank action, or is this the start of a prolonged period of leadership where underperformance does not last long? I suspect the snake-bite effect will be much harder to counter than most realize.

    This writing is for informational purposes only and does not constitute an offer to sell, a solicitation to buy, or a recommendation regarding any securities transaction, or as an offer to provide advisory or other services by Pension Partners, LLC in any jurisdiction in which such offer, solicitation, purchase or sale would be unlawful under the securities laws of such jurisdiction. The information contained in this writing should not be construed as financial or investment advice on any subject matter. Pension Partners, LLC expressly disclaims all liability in respect to actions taken based on any or all of the information on this writing.

    FARO Technologies Earnings Up Next

    FARO Technologies (Nasdaq: FARO  ) is expected to report Q4 earnings on Feb. 27. Here's what Wall Street wants to see:

    The 10-second takeaway
    Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict FARO Technologies's revenues will wither -11.8% and EPS will decrease -44.6%.

    The average estimate for revenue is $68.0 million. On the bottom line, the average EPS estimate is $0.31.

    Revenue details
    Last quarter, FARO Technologies booked revenue of $60.7 million. GAAP reported sales were 6.3% lower than the prior-year quarter's $64.8 million.

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

    EPS details
    Last quarter, EPS came in at $0.21. GAAP EPS of $0.21 for Q3 were 45% lower than the prior-year quarter's $0.38 per share.

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

    Recent performance
    For the preceding quarter, gross margin was 53.2%, 290 basis points worse than the prior-year quarter. Operating margin was 8.3%, 710 basis points worse than the prior-year quarter. Net margin was 6.0%, 390 basis points worse than the prior-year quarter.

    Looking ahead

    The full year's average estimate for revenue is $260.7 million. The average EPS estimate is $1.20.

    Investor sentiment
    The stock has a four-star rating (out of five) at Motley Fool CAPS, with 368 members out of 392 rating the stock outperform, and 24 members rating it underperform. Among 128 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 121 give FARO Technologies a green thumbs-up, and seven give it a red thumbs-down.

    Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on FARO Technologies is hold, with an average price target of $44.67.

    Looking for alternatives to FARO Technologies? It takes more than great companies to build a fortune for the future. Learn the basic financial habits of millionaires next door and get focused stock ideas in our free report, "3 Stocks That Will Help You Retire Rich." Click here for instant access to this free report.

    • Add FARO Technologies to My Watchlist.

    Robert Gates’ Warning for the World: TD Ameritrade Conference

    Robert Gates speaking at TD's Orlando conference on Thursday.

    Former Defense Secretary Robert Gates opened his keynote speech at the TD Ameritrade annual conference Thursday in Orlando with a series of rapid-fire one-liners worthy of Henny Youngman. The target? Inside-the-Beltway Washington politics.

    “It’s a pleasure to be here in Orlando,” Gates, whose long D.C. tenure includes a stint as CIA director from which he retired in 1993, said. “Actually it’s a pleasure to be anywhere but Washington, D.C.”

    He then quoted President John F. Kennedy by saying, “It’s a city of southern efficiency and northern charm."

    "Politicians have biblical levels of self-regard," he continued. "People there are always lost in thought because it’s such unfamiliar territory. They walk down Lovers’ Lane holding their own hand. They say they’ll double cross that bridge when they come to it.'”

    His obvious disdain for the powerbroker political elite then took a serious turn. Calling himself the “Eeyore of the national security community,” he identified a number of foreign-policy hotspots that clearly have him worried.

    “Our focus is usually on the daily headlines in the U.S.,” he said. “But as we do that, the world marches on.”

    When Gates retired in 1993, the United States had just won the Cold War and was the only remaining super power. Regulators had just cleaned up the savings and loan crisis and the country was on a sustained path of economic growth that culminated in a budget surplus by the end of the decade.

    But there were foreign policy warnings of bigger challenges to come, Gates said. Resentment and chaos in Russia led future Prime Minister Vladimir Putin to remark that the fall of the Soviet Union was the worst event of the 20th century. China saw the Soviet Union’s collapse as an opportunity to uncover and exploit our military weaknesses. And there were the first attacks by al-Qaida on the World Trade Center, as well as American embassies in Africa.

    “The death of Osama bin Laden was obviously a great victory in the war on terror,” Gates said. “Al-Qaida is now on its heels. But what we’re seeing now are more attacks by disaffected young men both here and abroad, as the Ft. Hood shooter illustrates.”

    We’ve been lucky, Gates added, because a number of attacks have failed recently, that, had they been successful, could have done great damage.

    “We can no more eliminate the risk of terror that we can eliminate crime,” he said. “We can reduce the risk, but not completely eliminate, especially in a free and open society of 300 million people. What we must do is fight the battle on their 10-yard line, not our 10-yard line, or worse, our end zone.”

    The war in Afghanistan was critical to reducing the threat of terrorism, but Gates lamented the “divergence of resources to Iraq in 2003” which he said “clearly hurt” the effort.

    “Despite the frustration over Afghanistan, that cannot lead to a premature exit,” he said.

    He then took on the issue of America’s relationship with Pakistan, which he also called frustrating, especially in light of the fact that after the death of bin Laden, the investigations were not into who might have assisted bin Laden in “hiding in plain sight,” but rather on who might have helped the Navy Seals with intelligence gathering.

    “There is a deficit of trust in that relationship, but we should not abandon it,” he said.

    He called Iraq “the most costly and controversial campaign of the post-9/11 theater,” and added that in his opinion, the United States should have kept a small force in behind to help keep the country stable.

    “As a sovereign country, they chose not to renegotiate the terms agreed to under the Bush Administration,” he explained. “[The Iraq War] will always be tainted by how and why it was launched, but we don’t get any do-overs. We have to protect what we accomplished and America’s interests in the region.”

    The strong showing of the Muslim Brotherhood in recent elections in Egypt are not encouraging, he said, noting that non-governmental organizations sent to monitor the voting are routinely harassed and representatives of one NGO that includes the son of the transportation secretary are now being detained.

    “One free election will not do,” Gates said. “You have to have a build-up of democratic institutions, the rule of law and civil liberties. No Arab state currently possesses the building blocks.”

    The unpopularity of the United States and the general loathing of Israel by the Arab public must be reckoned with. Unfortunately, this creates more problems than opportunities, he  added.

    “The tectonic plates in the Middle East have shattered,” he warned. “Remember that only one revolution turned out relatively well in its first decade, and that is our own.”

    Turning to Iran, he noted their pursuit of nuclear weapons, recent action in the Strait of Hormuz and the “amateurish” attempt to assassinate a Saudi ambassador in a Washington restaurant.

    “We must continue to ratchet up the diplomatic and economic isolation; it is the best hope and appears to be working,” he said. “We should not attack them militarily. They have a population that is increasingly disaffected. Attacking them would only rally the public behind the government.”

    Concluding with China, the former defense secretary said, ”We must deal with the national security implications of China’s growing wealth.”

    He noted the $3 trillion recently spent on updating the military, which could alter the balance of power in the Pacific. They also have an insatiable appetite for oil and energy, and are scouring the globe in its search.

    “They’re a growing power, so why are they so paranoid?” Gates asked. “Because the government’s only legitimacy is in a steadily growing economy. As that begins to wane, they are increasingly turning to nationalism to protect their exaggerated territorial claims, like in the South China Sea for instance.”

    However, we must not treat them as an enemy, Gates advised.

    “If we treat them as an enemy, they will surely become one.”

    Read full coverage of TD Ameritrade's conference at AdvisorOne.

    Should I Buy Man Group?

    LONDON --�It's time to go shopping for shares again, but where to start? There are loads of great stocks to choose from, and I've got my wallet out. Should I buy�Man Group� (LSE: EMG  ) ?

    Oh, Man...
    It's been a turbulent few years for hedge fund manager Man Group. Its share price is down 80% over the last five years, 60% over two years and 20% over the last 12 months. But it has picked up lately, rewarding contrarians by rising 40% over the last six months to 107 pence. Is now the time for me to "Man up"?

    Computer says no
    As the above numbers show, Man Group isn't for widows and orphans. But the most eye-catching number is its dividend, which is a heart-stopping 13%. You won't need me to tell you that signals trouble below stairs. Its flagship AHL fund, a computer-traded fund, has suffered a flood of exits after two years of miserable performance. Even Man Group's fat dividend was cause for concern, as investors questioned how long it would remain affordable. It ended in a shareholder revolt last May, including a protest vote over executive pay. Chief executive Peter Clarke was given nine months to turn things round and was gone by December. Since he presided over an 85% drop in the group's share price since taking charge in 2007, many investors have seen this as good news. He is to be replaced by Manny Roman, founder of hedge fund GLG, which Man bought in 2010 for 1 billion pounds.

    Man Group's share price may be heading in the right direction at last, but its troubles continue. It has just called in KPMG as an internal auditor, which it claims is standard practice, although most view it as an attempt to mend reputational damage. Despite the recent share price recovery, this clearly isn't a company for faint hearts. So what do the other numbers say? Its earnings-per-share growth has been terrifyingly volatile, with falls of -48% in each of the last two calendar years. At least it looks fairly cheap, trading at a price-to-earnings ratio of 11.3 times earnings -- and then, of course, there is that dividend, but watch out; it is only covered 0.7 times.

    Wham bam, no thank you, Man
    I've never been a big fan of hedge funds, or hedge fund stocks. Too many managers fail to live up to their mystique, or justify their fees. Broker views on Man Group are mixed. Bank of America rates it a buy, although it recently lowered its target price to 168 pence, from 200 pence. Credit Suisse has just reaffirmed its neutral rating, while lifting its target price from 94 pence to 104 pence. This stock looks too much of a speculative gamble to me, especially since there are more solid growth opportunities out there right now, including this current Motley Fool favorite. Our share analysts believe they have found�the single best U.K. growth stock of this year. They are so impressed, they have named it "Motley Fool's Top Growth Share for 2013." If you want to know its name, simply download our�free report. It won't cost you a penny, so�click here now.

    Top Stocks For 2/19/2013-2

    FedEx Corporation (NYSE:FDX) decreased 0.68% to close at $92.66. FDX traded 3.03 million shares for the day and its earning per share remained $4.39. FedEx Corporation (FedEx) is a holding company. It provides a portfolio of transportation, e-commerce and business services under, the FedEx brand. It operates in four segments: FedEx Express, FedEx Ground, FedEx Ground and FedEx Services. Federal Express Corporation (FedEx Express) is an express transportation company, offering time-certain delivery within one to three business days and serving markets. FedEx Ground Package System, Inc. (FedEx Ground) is a provider of small-package ground delivery service.

    CSX Corp. (NYSE:CSX) increased 0.17% to close at $64.11. CSX traded 2.91 million shares for the day and its earning per share remained $3.71. CSX Corporation (CSX) is a transportation company. The Company�s rail and intermodal businesses provide rail-based transportation services including traditional rail service and the transport of intermodal containers and trailers. CSX�s principal operating company, CSX Transportation, Inc. (CSXT), provides an important link to the transportation supply chain through its approximately 21,000 route mile rail network, which serves major population centers in 23 states east of the Mississippi River, the District of Columbia, and the Canadian provinces of Ontario and Quebec.

    AirTran Holdings Inc. (NYSE:AAI) no change for the day at $7.45. AAI traded 2.76 million shares for the day and its earning per share remained $0.35. AirTran Holdings, Inc. (AirTran) conducts all of its flight operations through its wholly owned subsidiary, AirTran Airways, Inc. (AirTran Airways). The Company operates scheduled airline service throughout the United States and to selected international locations. Approximately half of its flights originate or terminate at its hub in Atlanta, Georgia and it serves a number of markets with non-stop service from its focus cities of Baltimore, Maryland, Milwaukee, Wisconsin and Orlando, Florida.