Friday, November 30, 2012

The Options Play on SUPERVALU

In today's edition, Motley Fool analyst Austin Smith and "Options Whiz" Nick Crow discuss how to make 2012 the year YOU master the market. In this edition, Austin and Nick talk SUPERVALU. Austin likes the company's long-term potential and wants to invest in its turnaround potential without putting too much capital at risk. To counter this, Nick offers an options strategy to allow investors to capture big potential returns without plopping down too much cash.

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For more details on how to trade SUPERVALU using similar options strategies with as much potential or more, just click here. You'll be directed to the Motley Fool Options Whiz -- our interactive "Options U" designed to teach you to trade options sensibly, with a minimum of risk, and all the resources of The Motley Fool behind you -- all 100% FREE!

Double Your Profits in the New Age of Natural Gas

I recently got an e-mail from one of my Oil & Energy Investor subscribers, who posed a very interesting question. Take a look:

I bought a nice position in Cheniere Energy Partners LP (AMEX: CQP). It is not clear to me if they are in a position to benefit earnings-wise from future expansions of the business. Is a future dividend increase in the cards?
- Harry M.

The broadening initiative to export liquefied natural gas (LNG) from the U.S. to Europe and Asia has put a few companies in the spotlight.

Cheniere is certainly one of them.

Actually, we are dealing here with two tradable securities - Cheniere Energy Inc. (AMEX: LNG) and Cheniere Energy Partners LP (AMEX: CQP).

With Cheniere, we have both the company pioneering the LNG exports (Cheniere Energy), and the partnership controlling the company's Sabine Pass terminal on the Gulf of Mexico at the border between Louisiana and Texas (Cheniere Partners).

As my Energy Advantage advisory service subscribers will tell you, we're always discussing the new age of natural gas. This includes the impact LNG trade will have on profitability, and the position of Cheniere in this process. And Cheniere Partners is just one of the high dividend/high return stocks I have identified for them.

Lucrative LNGAs you probably already know, LNG is a major remedy for the accelerating glut of American and Canadian unconventional natural gas production, which runs the risk of oversaturating the market and depressing prices.

Exporting the gas, on the other hand, taps into widening international demand and carries the prospect of actually improving profitability for gas producers in North America, even while the domestic need for the energy does not keep pace with rising supply.

In so doing, U.S. and Canadian producers are simply paralleling developments already in place in Australia, New Guinea, Russia, and above all Qatar - the first dominant gas producer in the world to commit all of its exports to LNG shipping.

This worldwide trend has transformed the LNG trade from import to export.

As recently as five years ago, we were still talking about importing more LNG into the United States, as conventional production declined.

Now with shale gas (along with coal bed methane and tight gas), the unconventional sources provide more available gas than we ever imagined.

The issue now is how to export the surplus gas.

Enter Cheniere's Sabine Pass terminal.

Getting the Gas Around the GlobeThis terminal is a modular facility that increases its footprint as major long-term contracts are signed.

Cheniere has also received the first blanket permission from the U.S. Department of Energy to export LNG to any country in the world not on a sanctions list. It has responded by lining up big deals with some of the world's largest LNG importers - either for straight sales or contract swaps.

Now the downside to this has been Cheniere's heavy debt load, currently at $3 billion, combined with a price tag more than twice the actual building of the terminal.

Both refinancing the debt and building the facility will require new finance. And that is likely only if contracts are secured.

Of course, several of these have emerged this year. Just last month we got word of a very significant agreement with London-based BG Group Plc, worth $8 billion over 20 years.

Either way, the export of LNG from North America is no longer up for debate.

Canada has already revised the LNG terminal under construction at Kitimat on the British Columbian coast from an import to an export location (siphoning off some of the rising volume from the major Horn River and Montney shale gas plays in northern BC and Alberta).

In the United States, Dominion Resources Inc. (NYSE: D) runs the Cove Point, Md., LNG receiving terminal - the largest on the East Coast. Recently, the company applied to retrofit half of the facility for the export of LNG. Once the upgrades are complete, Cove Point will be the exit point to Europe for rising volume from the Marcellus Shale play.

Elsewhere, Royal Dutch Shell Plc (NYSE ADR: RDS.A) and Apache Corp. (NYSE: APA) have also moved to transform terminals for export.

Here is where the combination of capital appreciation in share value and dividends are likely to make a nice return. It also gets me back (finally) to Harry's question.

A Double Return for Investors Cheniere Energy Inc. (AMEX: LNG) is a straight share price play. It pays no dividend. However, its value will increase with each major contract Cheniere signs.

And the BG Group contract certainly did that. Cheniere Energy's stock has climbed 85% since the deal was announced Oct. 26 - and has soared 184% in the past month.

Cheniere Partners (AMEX: CQP) has also increased in value, up 27.43% in the last month. But unlike Cheniere Energy, Cheniere Partners also carries a hefty dividend - currently 10.2% annualized.

The high dividend is the result of how the partnership is structured. Under law, Cheniere Partners must pass all profits - without any corporate tax imposed - directly on to the partners.

When the partnership has also spun off an equity issue, the portion of profits represented by the stock comes to shareholders directly as a high dividend.

Take my word for it: The liquefied natural gas export market will only be increasing.

That means playing both ends of the Cheniere picture can provide a nice pop in share value, and a nice dividend.

So yes, Harry, the Cheniere Partners dividend will stay high.

And so long as the partners choose not to issue any additional shares, that dividend should be going up, too.

ATTN Lease Option Investors Check Out The Mortgage Assignment Program

Out from the ashes from the financial collapse and real estate bubble is definitely an all new real estate investment method that has been modifying exactly how investors invest in lease option investing to make sales.

The particular system that changes lease option investing is definitely the Mortgage Assignment Program, the fact that in its most basic form is just delivering household title, complete together with the existing mortgage, to a new new buyer.

The father of it is, real estate investing Guru Phill Grove, creator of the “Mortgage Assignment Profit System”.

This specific application is actually a principal reaction to the distinctive financial environments many of us consider ourselves in, with exceptional levels of determined home sellers that really need to sell, together with the modifying characteristics of new home purchasers entertaining the idea of inventive funding.

Here are a few reasons to contemplate making use of the mortgage assignment program rather of that aged lease option investing method.

During the previous couple of years the main lease option/owner financing buying pool has transformed. Simple fact is loads of men and women who were deemed very good credit risks just before 2008 are now not capable to obtain a home loan irregardless of what they make. Included within this group will be the self-employed, ITIN buyers, in addition to conventional potential customers with perfect credit who just won’t fulfill some nitpicky mortgage lender prerequisites just like length of time of employment.

In spite of the possibility that these guys won’t be able to get traditional bank funds, these purchasers really do not yearn to rent or even lease option/rent to own. They desire to purchase and guess what? Countless of them are superb savers. They already have as much as 10% to 20% down payments to pay out for a household, which you the actual real estate investor should certainly grab with only one catch: They desire the actual deed to the property or home.

The mortgage assignment program is really significantly a lot more desirable to these consumers than the usual lease option since it protects ones own interests. Not to mention, since the household comes together with the present homeowner loan, these people typically get a considerably far better rate which specifically tends to make it a much far more wise choice from this kind of real estate prospective buyers prospective.

There are some households you don’t desire to acquire

Let’s face it, there are a few houses on the market that due to the region, or quality, or that the form of financial loan in place you just do not want any piece of. Using the mortgage assignment program, you merely gather the purchaser and seller together. Contrary to a lease option, you’ll be by no means accountable and if some thing go bad, your hands are totally clean.

Less Hassle

Lease Option households can be a legitimate pain in the “you know what”, endlessly fussing with renters as well as their lame excuses, evictions, as well as property maintenance. Not just is it possible try to make considerably more on the down payment together with the mortgage assignment program, but it is just a “one night stand,” you should hardly ever hear from it once again.

They say you aren’t able to teach an old dog new tricks, but you can actually teach a real estate investor how to create even more stress free moolah. The mortgage assignment program is regarded as a promising new method regarding investors that use the lease option investing method mainly because regardless of exactly where you are living, it has plenty of synergy with what you’re at this time working on and this is a fantastic system to add to one’s war chest.

For further information regarding the mortgage assignment program, visit Mortgage Assignment Profits System.

Real Estate Investor – San Jose, CA

Gore’s Investment Firm Reportedly Will Start Asian Fund

Former Vice President Al Gore’s investment firm Generation Investment Management, LLP, which he co-founded in 2004 with David Blood, former head of asset management at Goldman Sachs Group Inc., may be readying itself to launch a $500 million fund that will seek out stocks from socially responsible companies in Asia. Generation is based in London.

According to Bloomberg, the news broke Sunday about plans to begin the fund that will focus on sustainability. The company only looks for stocks that will rise, not fall, so investments will be long-only purchases that focus on long-term results rather than short-term gains.

The new fund will look for investments within the region, including China and India, as those countries’ demand for natural resources exerts an ever-increasing pressure on the global economy. According to unnamed sources, it is possible that the new fund may launch by July.

Generation primarily seeks wealthy and pension fund clients, and stopped accepting new money for its main global equity fund after it reached approximately $5 billion in assets. The firm’s earnings nearly quadrupled in 2009, and according to the U.K. Environment Agency’s pension fund, which invests in the company, it beat its benchmark, the MSCI World Index, by 10 points for the 12 months ended in March of 2010. Bloomberg said that MSCI World Index had risen 47% in the same time period.

The new fund is to be kept separate from the company’s venture capital business. In order for an investment to be considered for the new fund, companies must meet Generation’s investment guidelines regarding the way they manage their financial development; this means they must “strategically manag[e] their economic, social and environmental performance, ” which includes sustainability and stewardship.

Stocks to rise ahead of Draghi comments

NEW YORK (CNNMoney) -- U.S. stocks pointed to a higher open as investors await comments from the European Central Bank, and weigh a new proposal for European-wide bank rescues and bailouts.

The Dow Jones industrial average (INDU), S&P 500 (SPX) and Nasdaq (COMP) futures were higher early Wednesday morning, boosted by upbeat economic figures out of Europe. Stock futures indicate the possible direction of the markets when they open at 9:30 a.m. ET.

The ECB left interest rates steady at 1%. The central bank's president, Mario Draghi, will hold a press conference at 8:30 a.m. ET. Global investors will be listening for comments from the ECB on what additional actions -- if any -- the institution will take to address the continent's debt crisis. The hope is that Draghi will signal that some sort of rescue effort is in the works.

The EU also unveiled a plan early Wednesday that would call for a Europe-wide banking union, which would deal with future banking crisis on the continent, rather than leaving them in the hands of their already struggling national governments. A specific size of the rescue fund to be created was not disclosed though.

Gross domestic product figures for the eurozone and the broader 27-nation European Union were unchanged compared to the end of last year, confirming initial readings.

European markets posted strong gains in afternoon trading. Britain's FTSE 100 (UKX) rose 1.1%, the DAX (DAX) in Germany gained 1.2% and France's CAC 40 (CAC40) jumped more than 1.7%.

Also lifting investors' global economic outlook, GDP rose 1.3% in Australia, about twice as fast as expected for the country, which depends on commodity exports for much of its economic activities.

The ECB meeting and EU bank union plan comes amid a deepening banking crisis in Spain, and ahead of a pivotal June 17 Greek election that could determine whether the nation remains in the eurozone.

Fear & Greed Index

On the domestic front, investors will be watching for the latest outlook on the U.S. economy. The Federal Reserve will release its "Beige Book," a report covering economic activity in its 12 regional districts, at 2 p.m. ET. The report will be the Fed's first statement on the strength of the U.S. recovery since Friday's disappointing May jobs report.

U.S. stocks finished higher Tuesday, but gains were limited as investors weighed an upbeat U.S. economic report against Europe's ongoing debt problems.

World markets: Asian markets ended mixed. The Shanghai Composite (SHCOMP) slid 0.1%, while the Hang Seng (HSI) in Hong Kong added 1.4% and Japan's Nikkei (N225) gained 1.8%.

Economy: First-quarter productivity was revised to -0.9%, from a previous estimate of -0.5%. Analysts were expecting a reading of -0.8%.

Companies: There are reports that Nasdaq OMX Group (NDAQ) will supposedly tell brokers Wednesday how it will compensate investors for problems with trading, during the Facebook IPO fiasco last month

Facebook (FB) shares edged up 1% in premarket trading Wednesday, after hitting a new low of $25.75 on Tuesday. Shares are still more than 30% below the IPO price of $38, even with the early rise.

Bloomberg reported that Chesapeake Energy (CHK, Fortune 500) is in advanced talks to sell almost all of its pipeline assets for more than $4 billion to Global Infrastructure Partners, which lifted Chesapeake shares 4.7% in premarket trading.

U.S. financial stocks were widely higher on hopes for more help for the European banking sector. Shares of Bank of America (BAC, Fortune 500), Citigroup (C, Fortune 500) and Morgan Stanley (MS, Fortune 500) were all up a bit more than 2% in premarket trading. Bucking the trend was JPMorgan Chase (JPM, Fortune 500), whose recent share problems continued as it was slightly lower in premarket.

Currencies and commodities: The dollar slid against the euro and the British pound, but gained strength against the Japanese yen.

Oil for July delivery rose $1.27 to $85.56 a barrel.

Gold futures for June delivery climbed $20.30 to $1637.20 an ounce.

Bonds: The price on the benchmark 10-year U.S. Treasury fell, pushing the yield up to 1.60% from 1.56% late Tuesday.  

7 Stocks That Did the Right Thing in 2011

In a flat market, dividends meant the difference between losing money and making money for many stocks this year. But even as investors remain fearful about the economy and the prospects for the markets in 2012, it's reassuring to see that a number of companies believe strongly enough in their future ability to generate consistent profits that they've decided to start paying dividends -- either after a long break or for the first time ever.

Below, I'll share the names of seven promising stocks that treated their shareholders better this year by starting to return some of their capital in the form of dividends. But first, let's take a broader view of what 2011 was like for dividend-paying stocks.

A good year for dividends
Although the final figures aren't yet out, 2011 is shaping up to be an excellent year for dividend investors. Among S&P 500 stocks, dividends in the third quarter of 2011 rose by 15% to $59.2 billion, the highest level since 2008. Combine this with strong buyback activity as well, and it seems companies have gotten a lot better about returning capital to shareholders in the past three years.

But it's even more impressive to see companies taking the plunge to restore past payout practices or initiate a new dividend. While it may be easy for a stock that already pays dividends to add a penny or two to its payout, starting a new dividend from scratch involves a true commitment that will last for years to come.

Who pulled the trigger?
A quick screen for stocks that didn't pay dividends in 2010 but did in 2011 came up with several dozen results. But after weeding out some companies that made only token dividend payouts in order to focus more on higher-paying stocks, these were the stocks that wound up at the top of my list:

Stock

Current Dividend Yield

Ford (NYSE: F  ) 1.9%*
Hecla Mining (NYSE: HL  ) 1.6%
Titanium Metals (NYSE: TIE  ) 2.0%
Cisco Systems (Nasdaq: CSCO  ) 1.3%
Royal Caribbean (NYSE: RCL  ) 1.6%
Cypress Semiconductor (Nasdaq: CY  ) 2.2%
Amgen (Nasdaq: AMGN  ) 2.3%*

Source: Yahoo! Finance. *Ford and Amgen have announced new dividend policies but haven't yet paid them.

Stocks from across all industries were among those initiating or reinitiating dividend payments this year. But the stocks above reveal some broader themes:

  • Many investors have long seen technology stocks as somehow being exempt from the general rule that large companies should return money to shareholders via dividends. Even huge companies like Apple still insist on retaining all their spare cash, even when it adds up to huge unused hoards. Cisco and Cypress joined those bucking that trend this year, and some think Apple could be next.
  • Another area where dividends were largely unseen was in mining. Miners often needed as much capital as possible to start their operations, and with high debt levels, dividends were typically unavailable. But with metals prices remaining above long-term average levels even after recent pullbacks, Hecla and Titanium were just a couple of the mining companies that started or boosted dividend payouts this year.

But perhaps the most interesting of the stocks above is Ford, which is in a different class from the rest. Most of the stocks on the list have accumulated cash for quite a while before their dividends. Ford, on the other hand, has been chafing at the bit to get a dividend started after a five-year hiatus. Given that the company hasn't yet regained its investment-grade bond rating, some saw the move as premature. Ford's determination to make payouts anyway shows just how important dividends are in today's investing world.

Get your dividends
With so many companies getting on the dividend bandwagon in a dicey economy, any true recovery could start an even bigger stampede. That's good news for those who need more income from their portfolios and opens a world of opportunities for smart dividend investors.

If you just can't get enough dividends, we've got some stock ideas you'll want to take a look at. Read The Motley Fool's latest special free report on dividends and learn about 11 stocks that will give you exactly what you're looking for. But don't wait -- get your free copy while you still can.

Thursday, November 29, 2012

SAIC Trims Rev, Margin Guidance For January 2011 Fiscal Year

SAIC (SAI), the government technology contractor, this afternoon posted revenue for its fiscal fourth quarter ended January 31 of $2.68 billion, with diluted EPS from continuing operations of 31 cents. The Street consensus was for $2.69 billion and 32 cents.

For the January 2011 fiscal year, the company previously had been forecasting growth at the low end of its long-term guidance range of 5%-9%; the new target is for growth of 3%-6%. SAIC now sees operating margin up 10-20 basis points, down a previous forecast of up 20-30 basis points.

SAIC noted that it is seeing slower-than-anticipated new contract awards, and also noted that there is now a “tougher government contracting environment.”

SAIC in late trading is down $1.08, or 5.7%, to $17.89.

A $1.5 Trillion Tidal Wave is About to Flood this Tiny Sector in the Next Decade

During the past year, exchange-traded fund (ETF) investors have welcomed a plethora of new funds to the marketplace. These new funds cover everything from municipal bonds to emerging market financials. But one of the most intriguing of this latest batch is a fund that covers a hitherto unexplored niche.

What's so exciting about this new fund is that it invests in companies that develop and implement one of the most important technologies to come about in a long time. It holds the key to securing an independent, "green" energy future for the United States right in the palm of its hand.

 

Uncle Sam has recognized this technology's potential and, through generous grants and matching investments from utilities, has unleashed an $8 billion tidal wave that is washing over the sector.

I'm talking about "smart grid" technology. And if you haven't heard about this game-changing technology yet, you will.

But first, some background.

The electricity grid refers to the transmission systems that deliver electricity from power plants to regional substations, and the distribution equipment that routes the power from substations to homes and businesses. This outdated infrastructure has been woefully underfunded during the past half-century -- paltry investments for maintenance and upgrades haven't kept pace with steadily rising generating capacity.

In short, we've spent plenty to produce more power to meet the nation's growing needs, but very little to actually get it from point 'A' to point 'B'. As a result, the grid has become overburdened and in desperate need of a major overhaul. Estimates made by the American Society of Civil Engineers put the price tag well into the trillions.

For his part, President Obama has made it clear that transitioning to a smarter, 21st century grid is a top priority. Last October, the administration pledged $3.4 billion in stimulus grants to help speed up that modernization. In addition, long overdue expenditures made by the nation's 3,000 utilities will bring that total closer to $8 billion.

The goal isn't simply to alleviate congestion and reduce the threat of blackouts and other power disruptions. A smarter grid will be well-insulated from potential cyber attacks. It will also be optimized to make sure power is delivered as efficiently as possible. In part, that means equipping the system with automated two-way communication and installing smart home appliances that can lower energy use during times of peak demand.

The U.S. Department of Energy summarizes these enhancements as making the power grid more reliable, efficient and secure. Getting there won't be easy. Yesterday's infrastructure wasn't designed to carry power from remote wind farms in South Dakota to homes in Chicago. But ultimately we'll have a responsive, adaptable system that can adjust the flow of electricity to reduce power consumption and lower utility bills.

Obviously, this spells tremendous opportunity for the dozens of companies involved in this nascent field. For many, $8 million would be a huge influx of cash, let alone $8 billion -- and that's just a down-payment for the $1.5 trillion that will be needed during the next decade.

Companies that make intelligent power distribution equipment and other electrical hardware and devices will be obvious beneficiaries. But there will also be a need for software, energy storage, monitoring equipment and other related products.

Take digital smart meters, for example, which will be installed in more than 40 million homes within the next few years. That rush will lead to plenty of orders for manufacturers like Itron (Nasdaq: ITRI), which my colleague Andy Obermueller reportsjust landed a major dealwith CenterPoint Energy (NYSE: CNP).

At $200 per meter, this contract alone could add $44 million to the firm's bottom line, triple what it earned last quarter. Add it all up, and it's easy to understand why General Electric (NYSE: GE) believes this one market could generate $12 billion in annual sales within the next five years.

Virtually every major player with an interest in this high-stakes game can be found in the new fund's portfolio I mentioned earlier. It's the FT Nasdaq Clean Edge Smart Grid (Nasdaq: GRID) ETF. Some of the holdings are conglomerates like GE and Siemens (NYSE: SI) with other lines of business, but I like the fact that 80% of the fund's assets have been reserved for pure-play specialists like iTron.

> GRID is uniquely positioned to cash in on the wave of funding that will soon inundate the relatively small smart-grid sector. But there is enough diversity among the fund's holdings to ensure that shareholders also have exposure to other sub-sectors of the green energy movement.

Stocks inch higher as Greece remains in focus

NEW YORK (CNNMoney) -- U.S. stocks edged higher Wednesday as investors remained focused on Greece, where the government is scrambling to secure more bailout funds and avoid a default.

The Dow Jones industrial average (INDU) rose 6 points, or less than 0.1%, to end at 12,884. The S&P 500 (SPX) added 3 points, or 0.2%, to 1,350. The Nasdaq (COMP) rose 12 points, or 0.4%, 2,916.

Given the lack of U.S. economic data Wednesday, investors continued to monitor developments in Greece, where talks on austerity reforms have been delayed several times this week.

Greek Prime Minister Lucas Papademos is meeting with the leaders of the three political parties that make up his interim government. The officials are discussing a draft of proposed spending cuts, including layoffs and pension reforms, that are a precondition for Greece to receive more bailout money.

Greece needs to finalize the program soon to pave the way for a second bailout of €130 billion from the European Union, International Monetary Fund and European Central Bank. Without these funds, Greece could miss a €14.5 billion bond redemption in March.

Finance ministers from the 17 nations that use the euro currency will meet Thursday to discuss the situation in Greece, according to a spokesman for Eurogroup president Jean-Claude Juncker.

Meanwhile, Greece is also negotiating with its creditors in the private sector over a writedown and debt exchange. There were conflicting reports on the ECB's willingness to participate in a restructuring of the Greek bonds it holds.

"Everyone is waiting for Greece to accept the austerity program and move ahead," said Peter Cardillo, market strategist at Rockwell Global Capital. "It's just a question of time."

All hail Caesars! - StockTwits

Cardillo said stocks could pull back once an official agreement is reached. But eliminating the threat of a "disorderly default" will ultimately help the market move higher, he added.

"The market has discounted the fact that Greece is headed for an orderly default, which takes the pressure off the euro and diminishes the fear factor," said Cardillo.

U.S. stocks moved higher Tuesday on optimism about a Greek debt deal.

Companies: Investors continued to tune in to quarterly corporate results on Wednesday.

Following the market's close, Visa (V, Fortune 500) reported better-than-expected earnings of $1.45 per share for the first quarter. The company said revenue rose 14% to $2.5 billion on strong sales in its services, data processing and overseas operations.

Dow stock Cisco (CSCO, Fortune 500) also reported quarterly earnings after the close. The company earned 47 cents per share, topping analysts' expectations, on sales of $11.5 billion.

Groupon (GRPN) shares fell in extended trading after the daily deals site reported quarterly results that missed expectations.

Sprint Nextel (S, Fortune 500) reported a steep loss for the fourth quarter, shedding $1.3 billion, or 43 cents per share, which was even worse than its year-earlier loss of $929 million, or 31 cents per share. The company blamed the sales expense from its launch of the iPhone.

CNNMoney parent company Time Warner (TWX, Fortune 500) beat expectations on earnings and revenue. The media company reported fourth-quarter adjusted net income of $946 million, or 94 cents per share, an increase from the prior-year figure of $754 million, of 65 cents per share.

Time Warner also raised its dividend by 11% and announced a 4 billion share buyback.

CVS Caremark (CVS, Fortune 500) said that its revenue jumped 11% to a record $107 billion and its adjusted earnings rose 6% to $2.80 per share.

Which brokerage will be the next to fall?

Buffalo Wild Wings (BWLD) said its same-store sales jumped 9% in the fourth quarter, contributing to a 35% revenue boost, to $220 million, and a 34% surge in net earnings, to $13.6 million.

Western Union (WU, Fortune 500) reported an increase in fourth-quarter revenue of 5% to $1.4 billion. The 160-year-old money-sending company said that earnings rose 40 cents excluding a tax benefit, compared to 37 cents in the year-earlier quarter.

Polo Ralph Lauren (RL, Fortune 500) reported its most recent quarterly earnings, showing a 12% surge in same-store sales and a 17% jump in revenue to $1.8 billion compared to the year-earlier quarter.

Late Tuesday, Yahoo (YHOO, Fortune 500) announced that four longtime board members, including the chairman, are leaving the company. The departures stemmed from board discussions about "why Yahoo! was not meeting either our own expectations or those of our shareholders," wrote Chairman Roy Bostock in a letter announcing the shakeup -- including his own departure.

Also, Caesars Entertainment (CZR), a casino entertainment provider, rose 71% in its first day of Nasdaq trading after raising $16 million through an initial public offering.

World markets: European stocks closed modestly higher. The DAX (DAX) in Germany added 0.2% and France's CAC 40 (CAC40) gained 0.4%. Britain's FTSE 100 (UKX) ended little changed.

Asian markets ended with solid gains. The Shanghai Composite (SHCOMP) spiked 2.4%, the Hang Seng (HSI) in Hong Kong increased 1.5% and Japan's Nikkei (N225) rose 1.1%.

Currencies and commodities: The dollar was slightly higher against the euro, the Japanese yen and the British pound.

Oil for March delivery rose 30 cents to end at $98.71 a barrel.

Gold futures for April delivery fell $17.10 to $1,731.30 an ounce.

Bonds: The price on the benchmark 10-year U.S. Treasury fell, pushing the yield up to 1.98% from 1.97% late Tuesday.  

3 Stocks Near 52-Week Lows Worth Buying

Just as we examine companies each week that may be rising past their fair value, we can also find companies potentially trading at bargain prices. While many investors would rather have nothing to do with companies tipping the scales at 52-week lows, I think it makes a lot of sense to determine whether the market has overreacted to the downside, just as we often do when the market reacts to the upside.

Here's a look at three fallen angels trading near their 52-week lows that could be worth buying.

The last optimists have left the building
When there are literally no reasons left to own a stock, that's generally when I'm digging deep, looking for a reason to buy. With regard to biotech redheaded stepchild Dendreon (Nasdaq: DNDN  ) , I finally see reasons to be bullish.

Dendreon itself has seen failures on multiple fronts. The product launch of Provenge, its infusion targeted at treating late-stage prostate cancer, went miserably, with physicians shying away from prescribing the treatment due to its costly $93,000 price tag. Even worse, two drugs currently in development could further disrupt Dendreon's already shaky sales growth. Johnson & Johnson's (NYSE: JNJ  ) Zytiga was shown in studies to be more effective at extending patients' life and quality of life as compared to Provenge (although further data is pending), while Medivation's (Nasdaq: MDVN  ) enzalutamide has shown statistically strong life-extending results with minimal side effects in trials.

With so much negativity piled up on Dendreon, it's my contention that it will be forced to do two things: marginally drop the price of its treatment in order to compete with Zytiga's $5,500 monthly cost and consider allying itself for further clinical studies to be used in combination with these experimental therapies. Rather than positioning itself as a stand-alone therapy, Dendreon could find a huge market in combination therapies. Dendreon has ample cash to conduct further studies and appears to have a good risk-reward balance at this level.

IP-Oh, no!
If you thought Facebook shareholders were having a hard go of things since its public debut, then be glad you're not a shareholder of travel and business accessories maker Tumi Holdings (NYSE: TUMI  ) , whose shares have spiraled steadily since its IPO. Brand-name accessory stocks have generally been strong performers until recently, so it's a bit confusing that Tumi shares have taken such a rapid dive. Fundamentally, I will admit, it isn't the cheapest company at 42 times trailing-12-month earnings, but it has a lot going for it.

Tumi's first-quarter report detailed a 16.9% increase in direct-to-consumer North American comparable-store sales. Weakness abroad caused its international comparable-store sales to fall by 1.6%, including e-commerce sales. Despite the mixed results -- which aren't that shocking, given the weakness we've witnessed in European spending -- the company reversed a marginal year-ago loss into a $2.9 million quarterly profit. Overall, net sales increased 21.4% as Tumi added 13 stores over the past year.

What I really like about Tumi is the room it has to grow internationally and the strength behind its easily recognizable product label. Tumi slides perfectly into most consumers' comfort zones for spending (not too cheap, not too expensive) and sells products that professionals constantly are demanding. It's an intriguing long-term play.

Good golly, Miss Molycorp!
After more than a year of being pessimistic on rare-earth metals, I'm ready to change my tune as pessimism in the sector begins to build. Molycorp (NYSE: MCP  ) , a rare-earth minerals miner that I've maintained a CAPScall of underperform on for months (a call I'm currently up 53 points on), looks like it has paid its dues. I'm now ready to close that underperform pick and break out my bullish pom-poms on Molycorp. (Trust me -- it's not as pretty of a sight as you might think.)

There are viable reasons to be concerned about Molycorp's growth over the next few quarters, as the Fool's Travis Hoium has pointed out. Although revenue and profits are rising dramatically, the price of the rare-earth metals that Molycorp mines are well off their highs. For now, the year-over-year comparisons are showing huge growth, but a year from now these comparisons will be much tougher to beat.

Still, Molycorp remains one of only two publicly traded and fully operational rare-earth miners (Lynas being the other), and it will hold on to that unique advantage for many years to come, considering that Avalon Rare Metals and Rare Element Resources are still years from having their mines up and running. The profits being produced here aren't small, either, even if rare-earth prices are falling. With a stranglehold on the U.S. market and a value of just seven times forward earnings, Molycorp shares are worth a shot here.

Foolish roundup
This week, it's all about being greedy when others are fearful. Shareholders of Dendreon, Tumi, and Molycorp are running for the hills and looking for a reason to sell their stock. As for me, that's the perfect recipe to be on the prowl for great values. I'm so confident that these three names will bounce off their lows that I'm going to make a CAPScall of outperform on each one.

In the meantime, consider adding these potential winners to your free and personalized watchlist -- and get your own personal copy of our special report, "The Motley Fool's Top Stock for 2012," to see which company our chief investment officer has dubbed the "Costco of Latin America." Best of all, this report is completely free, so don't miss out!

  • Add Dendreon to My Watchlist.
  • Add Tumi Holdings to My Watchlist.
  • Add Molycorp to My Watchlist.

Why Harsco May Be About to Take Off

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

Basic guidelines
In this series, I examine inventory using a simple rule of thumb: Inventory increases ought to roughly parallel revenue increases. If inventory bloats more quickly than sales grow, this might be a sign that expected sales haven't materialized. Is the current inventory situation at Harsco (NYSE: HSC  ) out of line? To figure that out, start by comparing the company's inventory growth to sales growth. How is Harsco doing by this quick checkup? At first glance, pretty well. Trailing-12-month revenue increased 8.7%, and inventory decreased 10.9%. Comparing the latest quarter to the prior-year quarter, the story looks decent. Revenue increased 4.7%, and inventory contracted 10.9%. Over the sequential quarterly period, the trend looks healthy. Revenue dropped 7.4%, and inventory dropped 12.5%.

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

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

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

What's going on with the inventory at Harsco? I chart the details below for both quarterly and 12-month periods.

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

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

Let's dig into the inventory specifics. On a trailing-12-month basis, work-in-progress inventory was the fastest-growing segment, up 20.4%. On a sequential-quarter basis, work-in-progress inventory was also the fastest-growing segment, up 0.5%. Harsco seems to be handling inventory well enough, but the individual segments don't provide a clear signal. Harsco may display positive inventory divergence, suggesting that management sees increased demand on the horizon.

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

I run these quick inventory checks every quarter. To stay on top of inventory and other tell-tale metrics at your favorite companies, add them to your free watchlist, and we'll deliver our latest coverage right to your inbox.

  • Add Harsco �to My Watchlist.

HP Plays WebOS Waiting Game

HP(HPQ) yet to decide what to do with its webOS software, despite rumors that an announcement on operating system's future was imminent.

The no. 1 PC maker reportedly held a meeting with employees late on Tuesday to discuss webOS, amidst media chatter that the company may look to sell off the software.

See if (HPQ) is traded within the Action Alerts PLUS portfolio by Cramer and Link

The Verge Web site says, however, that HP CEO Meg Whitman told the employees that there's still no decision on webOS."It's really important to me to make the right decision, not the fast decision," she said, according to the report, adding that a decision would come in the next three to four weeks.HP described the software as "strategically important" earlier this year, hinting that it may license the technology to other companies. Experts say that webOS has plenty to offer within HP's own technology portfolio. Famed for its strength in multitasking and video playback, webOS could also be used to drive printer connections to a range of devices, such as digital cameras. The tech bellwether has apparently not ruled out keeping the mobile operating system. "If HP decides [to keep webOS], we're going to do it in a very significant way over a multi-year period," Whitman reportedly told the meeting, adding that "it's a very expensive proposition, but HP can make that bet."The CEO also said that the webOS decision had been delayed while the company worked out what to do with its vast PC division. HP investigated a controversial PC spinoff as part of a major restructuring effort announced by former CEO Leo Apotheker, although Whitman, his successor, ultimately decided to keep the Personal Systems Group (PSG).Whitman acknowledged the "unsatisfying" webOS delay, according to The Verge, but noted that "the economics of this business are tough." The HP supremo said that she needs more time to decide whether HP should invest in webOS at great expense, or if "there's another way to create that ecosystem." An HP spokesman told TheStreet that the tech giant does not comment on internal company meetings. The Palo Alto, Calif.-based firm has not issued any definitive statements on the future of webOS.HP pulled the plug on its webOS-based hardware during the summer, fueling speculation about the future of the underlying mobile operating system.Shares of HP fell $1.21, or 4.4%, to $26.63 on Wednesday.--. >To submit a news tip, send an email to: tips@thestreet.com.

>To order reprints of this article, click here: Reprints

Rockin’ N’ Rollin’ With Stock Investment Clubs

One of the most enjoyable ways to make money is to join an investment club. Stock investment clubs are everywhere, and they are really “rockin’ n’ rollin’” with opportunities to learn and make money for their members. Online investment clubs are extremely standard now. Wіth thousands of new investors wanting to get in on the fun, this new take on an old thουɡht is a good fit. Benefits of membership in an investment club аrе:

1. Yου have a Ɩаrɡеr chunk of money to invest. Members pool their money by contributing to a club investing fund. Thіѕ contribution can be anywhere from $20 a month on up. Mοѕt clubs are set up so that each member contributes the same quantity, and that quantity is agreed upon by аƖƖ in the assemble.


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3. Opportunity to socialize and interact with Ɩіkе-minded people. It doesn’t really matter where they live. Members can be anywhere in the world and still be аbƖе to meet new people in different countries, all of which have the same passion for investing and learning.

It is vital to make sure a club is legitimate and not trying to scam anyone out of their hard earned money. Common sense ѕауѕ to do research into any investment club. Check the internet for scams and thoroughly review any available information on a club. Bе sure to stay away from any club that promises qυісk, simple, returns of large sums of money. Thе point of a club is to learn together how to make money. WhіƖе it would be nice to always have money come qυісk and simple, the reality is that it will take some time to see fаntаѕtіс income.

Wednesday Interest Rate Brief

More fears gripped investors on Wednesday as a second-look at the tone of the message from the FOMC the day before raised doubts over the economic recovery. Some suggest that the next stop will be a recession that central bankers appear powerless to prevent. A slide in French banking stocks amid wild rumors over the possible insolvency of a big name also boosted the appeal of government debt around the world, dragging financial shares lower on the way. Investors can’t be blamed in this environment for thinking that they were given some kind of wonder-drug when the authorities embarked on asset purchase plans. Only now, as the effects wear thin, the worrisome financial pain appears to have never gone away.

Eurodollar futures – Traders fell over themselves in a rush to flatten the yield curve after the Fed warned on the “considerably slower” pace of recovery saying it was “prepared to employ” additional tools to bolster the recovery. At the heart of the flattening was the change in its statement wording in which it dropped its “extended period” language adopting instead a defined period of “at least two-years.” Implied yields on Eurodollar futures contracts dropped like a stone with maturities through March 2013 (19 months forward) are now beneath 0.5% compared to a current reading of three-month Libor of 0.25%. The two-10-year spread also flattened hugely with the gradient of the curve falling below 200 basis points (2%) for the first time since October and ahead of the expected second round of quantitative easing. At the end of trading in July, less than two weeks ago, the curve was trading with a gradient of 250 basis points. Immediately after the Fed’s statement on Tuesday buyers locking into surging 10-year note prices drove the yield down to 2.04% matching its low point in December 2008 and shortly after the failure of Lehman Brothers just months before. That event was widely blamed as the straw that broke the camel’s back tipping a shocked global economy into outright recession.

European bond markets – Weakness in a French summertime reading of industrial output helped light the fire beneath a rally for government bonds before rumors of a major financial insolvency among the top-ranking French names created mayhem. Banking shares across Europe tumbled and the German bund emerged as the savior of the day. The September contract advanced by almost two full points easily clearing Friday’s panic-high. The surge in prices drove down the yield on the 10-year benchmark by 15 basis points and through resistance to stand at 2.21%. Such is the ongoing state of nervousness in the Eurozone that interest rate traders have started to think that at least some of the ECB’s two recent monetary adjustments to its short rate will come undone. At the start of August swaps rates implied a 25 basis point rise in short rates. Just over a week later, that view has changed markedly with the market currently implying a 31 basis point reduction in short-rates over the coming 12 months. Euribor futures are surging in London again with implied yields shedding a full quarter point as any and all of the fears associated with the financial crisis from yesteryear re-emerge.

British gilts – A downside revision to British growth for 2012 at 2% still looks mightily optimistic, which possibly explains a strong performance for the September gilt contract. The Bank of England in its quarterly report shaved 0.5% off next year’s growth rate and warned that inflation in the near-term might yet reach 5% further squeezing household finances. It also predicted that in the medium-term inflation would fall below target, justifying its maintenance of its 0.5% short-rate. Monetary policy can’t deliver all the goods necessary to restore growth claimed Governor King. Short sterling prices jumped by 20 basis points at deferred maturities, while nearby contracts saw implied yields dip by half as much.

Japanese bonds – Upside pressure on the yen maintained downside pressure on Japanese yields as traders wondered whether the Bank of Japan might follow the Fed’s lead in announcing a point in time through at least which it would maintain a zero interest rate. There are growing expectations that the Bank might also intervene for the second time in a week as the yen squeezes the recovery. September JGB futures added 11 ticks to trade at 142.24 sending the yield back down to 1%. An index of activity within the services industry rose 1.9% in June and twice as fast as the prior month.

Australian bills –Bond buyers showed signs of fatigue at an auction of 10-year government bonds midweek with the bid-to-cover ratio drying up to just 1.7-times. The June 21 auction drew bids worth 3.25-times the bonds on issue that day, admittedly at far higher yields. Cash bonds rose by the end of the day with the yield slipping by four basis points to 4.48%. An index of consumer confidence reinforced a worrying domestic situation falling to a two-year low. The Westpac confidence reading slid to 89.6 as global panic warms up. Bill prices added a further 10 basis points with the March 2012 maturity depicting the trough for rates at 3.61% depicting monetary relaxation of more than 1% before then.

Canadian bills – Canadian fixed-income traders trying to keep a finger on the pulse of the American economy had a hard time locating the pulse after the FOMC statement. As the nation’s largest export market, what happens in the world’s largest economy is critical to Canadian manufacturers. The slide in treasury yields was mimicked by the move in Canadian government bonds, but managed a yield decline of just 11 basis points Wednesday. The two-day outperformance of treasuries has cracked open the gap between the 10-year yields forcing those south of the border 15 basis points lower than on those of Canada. The September government bond future added 62 ticks by lunchtime sending the yield down to 2.34% compared to a 2.15% reading on the U.S. issue.

Wednesday, November 28, 2012

EMC’s Data Domain Profit Margins Expected to Remain Strong

Trefis members have created forecasts for one key driver of EMC (NYSE:EMC) over the last week: (1) Data Domain Gross Margin. The member forecasts suggest that Data Domain Gross Margin will trend in line with the Trefis forecast.

EMC added the data de-duplication business to its portfolio by acquiring Data Domain in July 2009. Data de-duplication is a storage technology that eliminates duplicate files so that data storage takes up less space. EMC competes with NetApp(NASDAQ:NTAP) and Oracle (NASDAQ:ORCL) in this space. We currently have a Trefis price estimate of $26 for EMC’s stock, about 31% above the current market price of around $19.

We estimate that the Data Domain division accounts for around 8% of the $26 Trefis price estimate for EMC’s stock. Hence the stock is not very sensitive to Data Domain Gross Margin. Below is a chart showing recent estimates created by Trefis members for the one driver in detail.

1. Data Domain Gross Margin

The average of Trefis member forecasts for Data Domain Gross Margin indicate an increase from around 74% in 2010 to 79% by the end of the Trefis forecast period, in line with the baseline Trefis estimates. In the past, Data Domain Gross Margin increased from around 69% in 2006 to around 73% in 2009. The member estimates imply a small downside to the Trefis price estimate for EMC’s stock.

Disagree? You can drag the forecast trend-line above to express your own view, and see the sensitivity of EMC’s stock to Data Domain Gross Margin.

Our complete analysis for EMC’s stock is here.

Disclosure: No positions

Where Did Ron Paul Go?

Ron Paul is out of the picture.

At least, that is exactly what entrenched politicians on both sides of the aisle — the neocon military/industrial complex intelligentsia, the media, the Greenwich Village pseudo-intellectual liberals and the Hollywood buffoons — would have you believe. It is hard to read a good word about Ron Paul, is it not? The silence on the media front when it comes to Dr. Paul makes you wonder if you hadn�t missed his obituary. Well, not quite. Out of eyesight, it looks as if Ron Paul�s Iowa ground army is overrunning opposition forces and propelling him to the front ranks of America�s first nominating battle in Iowa.

Ron Paul may well win Iowa and also New Hampshire. Victories in both states would dump the fat in the fire and panic would set in fast for the entire crowd outlined above. Can Ron actually get the nomination and win the White House? The Wall Street Journal wrote of Dr. Paul: �His radical views about the size of government probably doom him to defeat in the Republican primaries … As a candidate, Mr. Paul is likely finished.�

These pronouncements were clearly premature and misguided. The WSJ is an establishment outlet with a serious axe to grind against any candidate who would take the military/industrial complex to task. Americans historically have been hoodwinked on the subject of national defense, which as often as not has been more like national offense. Speak out against the fruitless and harmful nation-building supported by George Bush and Barack Obama, and you�ll quickly earn the tag of “unpatriotic.”

And lurking just over the horizon is the Project for a New American Century crowd who gave us the Iraq debacle. Just for starters, Google the reasons we are in Afghanistan, the end game that our leaders envision and the current status of the affair. Ron Paul appears to be the only candidate for the presidency who is against the folly that is Afghanistan. He also is the only candidate running for president who understands the conspiracy against the public regularly carried out by the Fed and politicians.

Read Dr. Paul�s End the Fed. You�ll be in for a surprise. Hans Sennholz (in Money and Freedom) called the creation of the Fed �the most tragic blunder ever committed by Congress� — a view I know is not shared by Mitt Romney, for one. Before the creation of the Fed in 1913, Ludwig von Mises, in The Theory of Money and Credit, warned that the creation of central banks would worsen and spread business cycles rather than eliminate them.

Today�s Fed travesty is a perfect example. The Fed lends to Wall Street for basically nothing, while it allows America�s retired savers to earn nothing on their life�s savings. Among Dr. Paul�s conclusions: �Nothing good can come from the Federal Reserve. It is the biggest taxer of them all. Diluting the value of the dollar by increasing its supply is a vicious, sinister tax on the poor and middle class.�

See why Obama wants to raise taxes on the wealthy here.

Semis: RBC More Cautious; Finds New Negative Data Points

RBC Capital chip analyst Mahesh Sanganeria this morning turned “incrementally cautious” on the semiconductor sector, “based on incremental negative data points from channel checks.”

“Driven by end demand weakness in several segments including networking, white-box handset and TVs in Europe as well as China, semiconductor inventories in Asia [distributors] have ticked up to [an] undesirable level, according to our checks,” he writes in a research note.

So far, he adds, semi companies may not have seen push-outs or cancellations as the inventory can be worked through during seasonal build season in the third quarter. “If the demand in Europe and China remains at depressed levels, we expect push-outs or cancellation in Mid-July time frame,” he adds. “We believe comm segment remains robust and the brightest spot in the channel is for Apple products, which has seen a strong uptick in forecast compared to just two weeks back.”

Sangameria says supply chain checks find Apple has increased its build forecast compared to a few weeks ago. He contends iPad forecasts have been increased by about 25%, while forecast for other Apple products have been increased by about 10%.

The SOX today is down 1.72, or 0.5%, to 359.67.

2 Super-Secure Dividend Stocks

The following video is part of our "Motley Fool Conversations" series, in which Andrew Tonner and Austin Smith discuss topics across the investing world.

In today's edition, Andrew & Austin discuss Coca-Cola and McDonald's: two dividend stocks that aren't going anywhere.

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If you're interested in Coca-Cola on your quest for great dividend-paying stocks, The Motley Fool has compiled a special FREE report outlining our 11 favorite dependable dividend-paying stocks. It's called "Secure Your Future With 11 Rock-Solid Dividend Stocks." You can access your complimentary copy today at no cost! Just click here to discover the winners we've picked.

Starbucks to sell single-cup home-brew machine

NEW YORK (CNNMoney) -- Starbucks unveiled its own single-cup home-brewing machine Thursday, sending shares of competitor Green Mountain Coffee Roasters reeling in after-hours trading.

Starbucks will begin selling its "Verismo" machine this fall, the company said in a statement, which did not offer pricing information.

Green Mountain currently dominates the single-serve market with its popular Keurig, or K-Cup, machines.

Last year, the two companies announced a deal allowing Green Mountain to produce K-Cup versions of Starbucks coffees and Tazo teas. With the Verismo, however, Starbucks is moving into single-cup brewing for itself, partnering with Germany-based Krueger GmbH & Co. KG to produce the machine.

"The premium single-cup segment is the fastest-growing business within the global coffee industry," Starbucks CEO Howard Schultz said in a statement.

"We have long believed that the biggest prize within the segment is a high-pressure system that would give us the opportunity to deliver Starbucks-quality espresso beverages at home and at work for customers who desire the Starbucks espresso experience outside of our stores."

Shares of Green Mountain (GMCR) were down more than 20% late Thursday, dipping below $49 after closing at $62.40. Starbucks (SBUX, Fortune 500) was up more than 3% after-hours, after closing at an all-time high of $50.37.

Starbucks gave no indication that it would dissolve the existing agreement with Green Mountain. Starbucks said that it shipped over 100 million K-Cup packs in the eight weeks following last year's launch, and that the Starbucks K-Cup business "continues to accelerate."

"This is complementary to our partnership with Green Mountain, and they can and they will co-exist," Schultz said in a call with analysts.

Schultz noted that the K-Cup brews coffee in a low-pressure machine, while the Verismo will also offer espresso-based drinks.

Representatives of Green Mountain did not immediately respond to a request for comment Thursday.  

Initial Jobless Claims Jump, Disappoint Forecasts

By Rom Badilla

The Department of Labor released data suggesting that people filing for first time unemployment benefits spiked, providing further evidence that the economy is stalling due to anemic job growth. Initial Jobless Claims increased to 484k people for the week ending August 7. In addition, Initial Jobless Claims for the prior week was revised slightly upward by three thousand to 482k. This week’s jump disappointed the market since it came in four percent above forecasts as economists expected a claims number of 465k. This drives the four-week moving average, which is universally used to “smooth out” the weekly volatility and to provide a discernable trend, to a higher level of 473.5k.

click to enlarge

Two Commodities to Buy in 2011

Investment guru Jim Rogers may like gold - but he LOVES silver.

“I would rather own silver than gold," Rogers tells India's "ET Now."

“Silver is still 40 percent below its all-time high. So silver has not been any sort of great bubble compared to perhaps some other assets we know." (Source: Moneynews.com)

And Jim, an agricultural bull since he opened his commodity fund in 1998, picks rice as his favorite grain:

“Likewise for the rice, if rice goes down, I will buy more rice. So both the silver and rice have a great future for the next few years,” Rogers says.

Incidentally there was an article in today's Wall Street Journal that reported farmers are reducing acreage for rice by as much as 30%, in favor of higher priced cotton and soybeans:

A shift in planting likely will come in the spring when farmers sow their fields in Arkansas and Louisiana, analysts said. They are projecting as much as a 30% cut in acreage devoted to long-grain rice. Growers will turn to soybeans, cotton or other crops after becoming frustrated with rice prices, which have lagged behind other agricultural commodities.

In 2010, U.S. rice futures fell nearly 4%, in contrast to soybean futures that climbed 34% and cotton futures that rose 91%. Driving the price gains were concerns that production wouldn't keep pace with demand, particularly as China's appetite for imports surged.

With corn, soybeans, cotton, and rice often competing for the same land, the sharp speculator can often do quite well buying the laggard(s) - which, in this case, is rice.

Precisely because farmers usually neglect the crop with the lagging price, and instead plant the crops that have already rallied. Which reduces the supply of said grain.

(Click to enlarge)

Rough rice is still well off its 2008 highs - with potential acreage reductions on tap, we could see a breakout soon. (Source: Barchart.com)

This is exactly the reason we we'd been salivating over the potential for cotton for so long - it was a matter of when prices would rocket, not if. And rocket they did!

(Click to enlarge)

When cotton broke out - largely thanks to supply constraints - it really did a moonshot!

The playbook was analogous with King Cotton - soybeans and corn had been rallying for years, while cotton's price languished. So farmers who had traditionally planted cotton increasingly got eyes for the sexier returns its ag cousins could bring instead. Supply fell - and soon after, prices rocketed.

So if you're looking to invest like Jim Rogers - and get some exposure to the grains - it looks like rice is the most reasonably priced starch for your plate today.

Hat tip Daily Crux for the original link.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Energy mostly gains; ConocoPhillips in focus

NEW YORK (MarketWatch) � ConocoPhillips said Thursday first-quarter production will slightly exceed its average target for the year as the energy supplier tapped the well-known Phillips 66 gas station brand as the name for its new refining spin-off.

Meanwhile, energy stocks move lower, falling back from earlier gains, to end the week in the red.

The sector took its cue from the broad equities market, which moved lowerr, as well as fresh data on ample supplies of natural gas.

The U.S. Energy Information Administration said natural gas stockpiles rose by 42 billion cubic feet in the week ended March 30. Inventories now sit about 934 billion cubic feet above the five-year average and 887 billion cubic feet higher than the year-ago level.

Click to Play Stocks Edge Lower

U.S. stocks edge lower as rising borrowing costs in Spain and concerns over slowing growth elsewhere in Europe weigh on sentiment, Chris Dieterich reports on Markets Hub. Photo: AP Photo/Seth Wenig.

In the broad sector, energy stocks in the S&P 500 index SPX �dropped 0.7%.

The NYSE Arca Oil Index XX:XOI �declined 0.6% and the NYSE Arca Natural Gas Index XX:XNG �dipped 0.7%, while the Philadelphia Oil Service Index OSX �moved down by 0.4%.

Shares of ConocoPhillips COP �fell 1.1%. The company expects to report first-quarter production of about 1.62 million barrels of oil equivalent a day, slightly ahead of its average daily forecast of 1.55 million to 1.6 million barrels projected for 2012.

However, first-quarter refining margins are expected to be �negatively impacted by significantly weaker crude differentials and secondary product margins,� the company said, citing higher prices for crude oil.

The Houston-based energy company also said it plans to sell about $10 billion in assets in 2012.

Separately, ConocoPhililps said when-issued trading in shares of Phillips 66 will begin on or about April 12 as part of a spinoff of the refining and marketing unit.

After the markets close on April 30, ConocoPhillips shareholders will get one share of Phillips 66 common stock, which will trade on the New York Stock Exchange under the ticker PSX, for every two shares of ConocoPhillips stock held at the close of business April 16, the company said.

After the spinoff, Ryan Lance will become chairman and chief executive of ConocoPhillips and Greg Garland will become chairman and CEO of Phillips 66.

The new Phillips 66 may already have a refinery sale in the works. According to a CNBC report, Delta Air Lines DAL �may be looking to purchase a ConocoPhillips refinery as a way to hold down rising fuel costs.

Among stocks on the move, Cabot Oil & Gas COG �gained 2.2% after the company said Thursday it resumed full production from the Marcellus Shale of Susquehanna County, Pa., after the Lathrop Compressor Station was restarted. The station was damaged by a fire on March 29.

Cabot estimated it�ll lose about 1 billion cubic feet of natural-gas production in 2012 as a result of the accident. The company characterized the lost output as minor.

Also on the move Ultra Petroleum UPL �fell 2.3%, Marathon Oil MRO �dipped 1.3% and Weatherford International WFT �slipped 3%.

On the up side, National Oilwell Varco NOV �rose 0.8% and Tidewater Inc. TDW �moved up by 1.4%.

Energy stocks lose ground for the week

/quotes/zigman/6015539 XOI 1,180.48, +8.46, +0.72% /quotes/zigman/6015474 XNG 625.47, +2.30, +0.37%

Despite posting solid gains to kick off the new month, energy stocks quickly cooled off to end the first week of April. On Good Friday tomorrow, the stock market is closed.

The NYSE Arca Oil Index closed Thursday at 1,244, about 1.8% below its ending point last Friday of 1,267,

The NYSE Arca Natural Gas Index ended at 642 on Thursday, 1.2% down from its closing level of 650 last Friday.

The Philadelphia Oil Service Index closed Thursday at 235, three points, or 1.3% below its closing level of 238 last Friday.

Tuesday, November 27, 2012

Are You Watching This Trend at ConAgra Foods?

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

Here's the current margin snapshot for ConAgra Foods over the trailing 12 months: Gross margin is 22.5%, while operating margin is 10.1% and net margin is 5.7%.

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

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

Here's the margin picture for ConAgra Foods over the past few years.

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

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

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

Here's how the stats break down:

  • Over the past five years, gross margin peaked at 25.6% and averaged 24.2%. Operating margin peaked at 11.0% and averaged 9.6%. Net margin peaked at 8.3% and averaged 7.2%.
  • TTM gross margin is 22.5%, 170 basis points worse than the five-year average. TTM operating margin is 10.1%, 50 basis points better than the five-year average. TTM net margin is 5.7%, 150 basis points worse than the five-year average.

With recent TTM operating margins exceeding historical averages, ConAgra Foods looks like it is doing fine.

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Top Stocks For 3/24/2012-12

Flotek Industries Inc. (NYSE:FTK) will host a conference call on Thursday, May 12, 2011 at 7:30 a.m. Central Time to discuss its operating results for the quarter ended March 31, 2011. Flotek intends to provide dial-in information through a press release on May 11, 2011. Flotek plans to file its 10-Q after the market close on May 11, 2011. In addition, the Company will provide additional details regarding operating results in a press release after the market close on May 11, 2011.

Flotek Industries, Inc. supplies drilling and production related products and services to the energy and mining industries in the United States and internationally. It operates in three segments: Chemicals and Logistics, Drilling Products, and Artificial Lift.

Crown Equity Holdings, Inc. (CRWE)

Internet Marketing is such a complex and rapidly evolving field that Internet marketers are forever playing catch-up in an effort to adopt the latest strategy in boosting online visibility, traffic and market share.

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

Internet Marketing is the planned, strategic use of the Internet in its various permutations to advertise a company, its products and services. Its execution requires knowledge of online competition, market and audience behaviour, an understanding of the communicative uses and technical structures of the Internet, and strong business and marketing objectives.

A successful business campaign takes careful planning, expert professional advice, and a range of resources. Crown Equity Holdings Inc’s online marketing expertise offers a complete line of services to help your company achieve its goals.

At Crown Equity Holdings Inc. you’ll find creative advertising service at competitive rates.

Crown Equity Holdings, Inc. announced that it has extended its CRWENEWSWIRE global platform web presence and is now publishing online news and information to the following countries: Argentina, Australia, Brazil, Canada, China, France, Germany, India, Ireland, Italy, Japan, Malaysia, Mexico, New Zealand, Russia, Singapore, South Africa, South Korea, Spain, Taiwan, United Arab Emirates and the United Kingdom, using their specific country code domain and native language.

For more information, visit http://www.crownequityholdings.com

National Health Partners, Inc. (NHPR)

National Health Partners, Inc. is a national healthcare savings organization that provides discount healthcare membership programs to uninsured and underinsured people through a national healthcare savings network called “CARExpress.” CARExpress is one of the largest networks of hospitals, doctors, dentists, pharmacists and other healthcare providers in the country and is comprised of over 1,000,000 medical professionals that belong to such PPOs as CareMark and Aetna.

The problems with America’s patchwork health care system are fast reaching a critical mass. Soaring costs, rising faster than inflation, are eroding workers’ coverage and paychecks. Sixteen percent of Americans have no coverage at all a problem that has become worse in the last five years. And medical studies reveal an alarming extent of poor-quality care that affects everyone.

National Health Partners Inc recently announced that it has signed a new agreement with a major marketing company that will significantly enhance the growth of its CARExpress membership base.

According to the Company, this deal, in combination with the previous partnership with Xpress Healthcare, will enable the company to build its membership base exponentially, initially generating in excess of an additional 2,000 new members per month. The new campaign is set to launch within the next few weeks and will provide a material positive impact on the company’s 2nd quarter sales.

National Health Partners anticipate that this new marketing agreement will provide a major impact on their overall sales not only for the 2nd quarter, but more importantly for the year. They look forward to building on the profits that they anticipate generating in 2011 that will be driven by substantial growth in sales of their CARExpress health discount programs. The combination of their substantial growth with their low price-to-equity ratio should reflect itself in the price of their stock over the coming months.

For more information about National Health Partners, Inc visit its website www.nationalhealthpartners.com

Salesforce.com (NYSE:CRM) announced that Graham Smith, Chief Financial Officer, will present at the Pacific Crest hosted Bus Tour on Thursday, April 14, 2011 at 9:00am (PT) / 12:00pm (ET) in San Francisco, CA.

Salesforce.com provides customer and collaboration relationship management (CRM) services to businesses and industries worldwide. The company also offers a technology platform for customers and developers to build and run business applications.

Vishay Intertechnology Inc. (NYSE:VSH) announced that its Annual Meeting of Stockholders will be held on June 1, 2011 at 10:30 a.m., Eastern Time at the Rittenhouse Hotel, 210 West Rittenhouse Square, Philadelphia, Pennsylvania 19103.

Vishay Intertechnology, Inc. manufactures and supplies semiconductors and passive electronic components in the United States, Europe, and Asia.

5 Tips From The Legendary Peter Lynch

Along with Warren Buffett and Seth Klarman, I consider Peter Lynch to be one of my favorite investors who I could stand to learn quite a bit from. From 1977 to 1990, Lynch ran Fidelity’s flagship Magellan fund, which grew at a rate of 29.2% annually over the thirteen year stretch that he was in charge. Famous for preferring businesses that had ‘business models he could draw with a crayon,’ Lynch was able to target companies with durable economic advantages and patiently wait for the right price.

If you had invested $10,000 with Lynch during the first year that the fund opened, your initial investment would have compounded into over $250,000 after-tax when Lynch’s thirteen year reign came to a close. Lynch encouraged investors to focus on five factors in particular when evaluating a potential investment, and they form an incredibly helpful checklist to keep in mind when scoping out companies for investment.

(1) The company operates in a boring, or preferably, disagreeable sector. One of Warren Buffett’s most profitable investments of the past twenty five years has been Gillette, now part of Proctor & Gamble (PG). For most people, razor blades aren’t an exciting investment, but Buffett considered the value of Gillette’s brand name and the repetitive nature of the product that is relatively immune from technological obsolescence and recessions—people are going to keep shaving no matter what. In Lynch’s case, he believed that companies like Waste Management (WM) would tend to trade at a discount because of the disagreeable nature of the business—you rarely hear about people investing chunks of their life savings in a toxic waste hauling company, and Lynch believed this created an undervalued opportunity for investors to exploit.

(2) The company benefits from technological advances. For most of the 20th century, newspapers were considered blue-chip stocks. Heck, if the internet never came along, the New York Times (NYT) could be considered a core holding, a company with an indefatigable moat. But we all know what the rise of the internet did to the newspaper business model. Lynch encouraged investors to look at companies that can reduce costs with successive advances in technology. Coca-Cola (KO) is now able to offer a machine that can create 100 different flavor combinations with its new mixer machine that automatically transmits the sale order back to HQ in Atlanta, for cataloguing, and this allows the American stalwart to improve cost efficiencies.

(3) The company operates in a niche that would be difficult for other companies to penetrate. When Buffett explained his recent investment in IBM during his CNBC interview last week, he told an anecdote about when tried to start his own tech servicing firm in the 1960s. Buffett was willing to operate at cost in an effort to try to establish market share, but one of his hopeful clients told him, “No one gets fired for going with IBM.” At that moment, Buffett realized that not only could he not compete with IBM in the niche economically (because they were making a profit when he would have to operate at cost), but the company had established such a reputable advantage in the niche of tech servicing that it seemed highly unlikely that anyone would be able to disrupt IBM’s market share.

(4) Whether the economy is undergoing expansion or contraction, customers will buy the product. In 2007, when the Dow Jones (DIA) was trading at an all-time high, people were drinking Pep (PEP) products and eating Lay’s potato chips. In 2008 and 2009, when the Dow Jones cut in half, people were still drinking Pepsi products and eating Lay’s potato chips. With this in mind, Peter Lynch focuses on companies that can grow earnings in weak environments, because that is where blue-chip companies usually earn their keep. When I read the WSJ in the morning, it seems that for every article lamenting unemployment in the US and economic collapse in Europe, there is an article talking about some company’s record profits. Well, companies with record profits in bad economic environments ought to be a good place to start some investment research—if Proctor & Gamble (PG) is selling more Tide and Gillette razor blades than ever, than who cares if the stock price has been stagnating if earnings are continuing to improve, year-in and year-out, along with the dividend?

(5) The company does not expand into unrelated industries that generate lower profits. To me, this is probably the most discretionary of Lynch’s investment tropes. The best thing that management has ever done for PepsiCo has been purchasing Frito-Lay, and I hated it when Altria (MO) broke up with Kraft (KFT) because the grocery and snacks earnings provided a reliable stream of income that served as protection against the theoretical decline of the tobacco industry. But still, Lynch makes a good point—investors should watch out for companies that ‘diworsify’ by entering businesses that have low returns where present management has no comparative advantage. In the 1980s, Coca-Cola began farming shrimp and buying a movie studio—both of these ventures were not successful, and cost shareholders real money. Fortunately for shareholders, Coke is one of the strongest brands in the world—so shareholders still did quite fine—but still, you want to watch out for companies that expand into new industries that have little correlation with the core business.

When his kids would come home from school, Peter Lynch would often grill them about the types of products they prefer. Why did they want Nike (NKE) shoes when they went to the shoe store? Why did they prefer Kraft macaroni and cheese to the store brand? Why would they rather drink Coca-Cola? Lynch looked around him at the products those close to him actually preferred, and that provided an initial basis for him to conduct his research—when those companies reached the right price, Lynch was able to bet big and never look back.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Republicans And Democrats Dicker While The Deficit Yawns And Rome Burns

 

As a CPA, I am disgusted by the financial games being played in Washington by our elected officials, and their habitual lying to the American people.

Republicans lie about temporary Bush tax cuts

Republicans and their tax-pledge protector Grover Norquist are incorrect in saying ending the Bush tax cuts is a tax hike in the middle of a recession. Or maybe upon their 2001 enactment, Republicans were lying about the cuts being �temporary.�

The truth is, these tax cuts are a temporary 12-year tax stimulus program expiring in the middle of a slow recovery.
Since the 2008 presidential election, Republicans have been campaigning and negotiating hard to make the Bush tax cuts permanent for all tax brackets, in spite of the deficit climbing out of control.

Is it part of Norquist�s tax-protection pledge to trick Congress, the president and taxpayers into temporary tax cuts and later insist they be made permanent, otherwise Congress will break their tax pledge? If that�s the case, Congress can never again pass a temporary tax cut as part of stimulus or otherwise.

Perhaps that�s why the Republicans appear to be blocking President Obama�s efforts to extend temporary payroll tax cuts set to expire soon. Republicans have said temporary tax cuts don�t work and are a waste of money. Blocking the president on all fronts may be part of their campaign playbook, too.

Somehow, the Bush tax cuts feel like more like a political hot potato and campaign issue than tax policy.

Democrats lie about temporary stimulus spending, and real cuts to spending

On the spending side of the ledger, the debt talks are a charade. Both parties are not even talking about real cuts to spending, but rather reductions in the growth rates of spending. That�s not a spending cut but a smaller spending increase. Why the deception?

This reminds me of Democrats using the verbiage �cutting tax expenditures� to mask what they really mean: raising taxes by eliminating tax deductions and credits. When they target a tax break for closure, they call it a �tax loophole,� giving the impression it was always inappropriate.

Morgan Stanley Misses Q2 Estimates, Shares Drop

Morgan Stanley (NYSE:MS) said today that it earned $591 million during its second quarter, down 50% from $1.19 billion during the same time last year. EPS came in at 29 cents. Revenue for the quarter dropped 24% to $6.95 billion.

The results disappointed analysts who had predicted revenue of $7.7 billion and EPS of 43 cents, The Wall Street Journal noted.

Don’t Buy Into Big Banks’ Hooey

Investors weren’t happy either. Morgan Stanley shares fell about 5% in Thursday morning trading.

The company was hit with a two-notch credit downgrade — from A2 to Baa1 — by Moodys last month, forcing it to post $2.9 billion in collateral to its creditors, partners and exchanges. Total increases in collateral resulting from the credit downgrade could hit $6.3 billion, the bank said.

Morgan Stanley reported that during the quarter, it saw a 37% drop in revenue from its institutional securities business, which generated $3.23 billion. Its fixed-income trading business saw an even worse decline, falling from 2011 revenue of $1.9 billion to just $770 million in the second quarter.

The bank’s equities trading business also contracted from revenue of $1.8 billion last year to $1.1 billion during the past quarter.

Earlier this week, Goldman Sachs (NYSE:GS) topped Wall Street forecasts even though its�second-quarter net income fell 11% to $962 million, compared to the same time last year.

Top Stocks For 2012-1-4-11

DrStockPick.com Stock Report!

Thursday August 13, 2009


Stocks Upgraded Today

CompanyTickerBrokerage FirmRatings ChangePrice Target
Home DepotHDFBR CapitalMkt Perform � Outperform$25 � $30.50
HarrisHRSMorgan JosephHold � Buy$40
Coca-Cola EntCCEUBSNeutral � Buy$19 � $23
SRA IntlSRXJesup & LamontHold � Buy
ReneSolaSOLCredit SuisseNeutral � Outperform
InterpublicIPGDeutsche SecuritiesHold � Buy$5.50 � $7
Assured GuarantyAGOJP MorganNeutral � Overweight
Popular IncBPOPB. Riley & CoNeutral � Buy
PerkinElmerPKIThomas WeiselMarket Weight � Overweight$18 � $20
Pan Am SilverPAASUBSNeutral � Buy$23
J. CrewJCGFBR CapitalMkt Perform � Outperform$25 � $36
HearUSAEARRoth CapitalHold � Buy$1 � $2
Power IntegrationsPOWIRoth CapitalHold � Buy$30 � $35
TellabsTLABMorgan KeeganMkt Perform � Outperform
WuXi PharmaTechWXJefferies & CoUnderperform � Hold$5 � $12


Stocks Downgraded Today

CompanyTickerBrokerage FirmRatings ChangePrice Target
Arthur J. GallagherAJGStifel NicolausHold � Sell
Rockwell CollinsCOLArgusBuy � Hold
PalmPALMMorgan JosephHold � Sell$7.50
ReneSolaSOLPiper JaffrayNeutral � Underweight
JA SolarJASOBarclays CapitalOverweight � Equal Weight$5 � $4
DR HortonDHICitigroupHold � Sell
Hutchison TelcomHTXCredit SuisseOutperform � Neutral
Hutchison TelcomHTXHSBC SecuritiesOverweight � Underweight


Monday, November 26, 2012

Belgium Rental-car Obstacles as well as Difficulties

By : Kuantum11220608/SewaMobilJakarta

The earth Conflict I’d it is terrible consequences upon Germany especially the bad Holocaust years, though most of these consequences carried on intended for alongside occasion, and Germany encountered negatively in the consequences of that upon it is standing, relationships, economy, travel and leisure and many various other job areas – though the In german individuals does yet still do their very best to get all the probable symptoms that may result in the entire world ignore their own depressing beyond for good.

Even though, Germany is usually a region that is certainly totally prosperous with tradition and historical past, has become one of the most intensifying international locations on this planet and possesses considerably had the oppertunity to decide on themselves upward in the ashes of the company’s darker and bad beyond to indicate everyone around you that they are not any conceited and conceited nation in the end Sewa Mobil Jakarta.

It’s so amazing to possess a trip around Germany, where you will find the actual well-balanced combination of modernity and lush region factors, but it is only amazing for those who have a motor vehicle throughout you trip, so if you strive to be protected and obtain all the enjoyable and luxury that you would like, make an effort to get a car for the very start of the trip with Germany, and it’s also a breeze to acquire a car hire with Germany currently.

Due to the fact that will Germany is undoubtedly an industrial region, you will find that it is challenging get in touch with these on a conversational level with English, therefore it is important that you search for a fantastic, dependable and reasonably priced car hire intended for Germany, before you begin your excursion Sewa Mobil Jakarta.

It is additionally attractive you should try to use a roadmap as a way to specify the actual locations you want to check out within your excursion, although doing this you could make some form of assessment which supports you understand if it’s far better to you to use a motor vehicle hire within your excursion with Germany or even it will be more cost-effective the use of the actual bulk transport automobiles.

It is additionally crucial that you evaluate the personal talents and also to discover how long you’ll stay presently there and the way you can pay for the actual expanses of the stay.

Opt for the policies involving generating with Germany along with various other The european countries, that need you to definitely drive within the proper facet of the route, do you want to manage that easily or even as a lot of individuals you may confront some issues with this. So that you might make an effort to find some notes this before actually making your reservation for for your self a motor vehicle hire intended for Germany, or you can certainly consult one particular which made that will before, when they learned that it is secure they are driving within the proper facet of the route or not or simply many times an individual that may become your designated car owner which will remedy your problem very easily Sewa Mobil Jakarta.

In case you can not manage these remedies, you’ll need to ready your self applied intended for making your reservation for by yourself an established car owner; it can be done through the help of the auto hire Germany company to set up a person which talks good English or otherwise the one that can certainly get in touch with you very easily. Don’t allow these limitations for you to indulge your holiday, merely prepare and you’re simply guaranteed to be capable of appreciate your vacation with Germany fully without the need of issues furthermore you will end up a little bit of a pro in relation to car hire Germany.

There’s nothing even worse as compared to becoming caught up in a international region with a used car owner individual preference can not get in touch with, aside from to be a overall waste materials of capital, you will be guaranteed to keep Germany with a major head ache. Do not be put off at this “little obstacles”, merely prepare and you’re simply guaranteed to be capable of appreciate your vacation with Germany fully without the need of issues furthermore you will end up a little bit of a pro in relation to car hire Germany.

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