Friday, December 31, 2010

Top New Years Resolutions Stocks


Consumers are planning their New Year's resolutions now, including weight loss, exercising, and getting a job. Investors are also planning their resolutions by looking at New Year's resolutions companies. WallStreetNewsNetwork.com has just updated the list of top New Years resolution stocks, which could make your portfolio healthier. Check out the following.

Weight Watcher's International Inc. (WTW), founded in 1963, is one of the oldest weight loss companies in the world. The stock has a forward PE of 13.6, and pays a fairly generous yield, at least compared to other New Years stocks, of 1.9%.

Herbalife Ltd. (HLF) has done quite well this year, rising from 39.87 at the end of December last year to over 68 today, an increase of an amazing 70%. The company, a provider of nutritional supplement and personal care products, has a forward PE of 13, with a yield of 1.4%.

Lululemon Athletica Inc. (LULU) is another resolution stock that has performed extremely well, going from around 31 per share at the beginning of the year, doubling to above 68. It is a Vancouver, Canada based company that produces and markets fitness related apparel for yoga, running, dancing, and other exercise related activities. The stock has a forward PE of 39, and doesn't pay a dividend.

To see the entire list of New Years Resolution stocks, which can be downloaded, sorted, and updated, go to WallStreetNewsNetwork.com.

HAVE A HAPPY NEW YEAR EVERYONE!!!


Disclosure: Author did not own any of the above at the time the article was written.

By Stockerblog.com

Thursday, December 30, 2010

The Company that Benefits the Most from Higher Interest Rates

Investors are afraid of higher rates. They are concerned that rising interest rates will make it harder to buy real estate, make it more expensive for companies to get and repay short-term loans, and make it difficult for consumers to make their credit card payments. So higher rates will adversely affect banks, REITs and utilities, and of course any companies that incur a lot of debt.

Most analysts say that pharmaceutical stocks and consumer staples are the best places to put your money during rising rates. But there is one stock that will benefit big time from higher interest that doesn't fall into either of these sectors. The stock is Apple Inc. (AAPL).

Why Apple? First of all, it has no long-term debt. Second, the company has a huge amount of cash. No wonder why I referred to Apple as a money market fund a few months ago. Although many articles report that it has about $51 billion in cash, that number includes $25.391 billion in what Apple's accountants consider long-term marketable securities. But Apple does have $11.261 billion in cash and cash equivalent securities plus $14.359 billion in short term marketable securities, for a total of $25.56 billion.

Apple's weighted average interest rate has been dropping for the last three years, as have rates in general, from 3.44% in 2008, to 1.43% in 2009, to 0.75% for the current year. Of the $25.56 billion in what is essentially cash, total income based on the 0.75% weighted rate is about $191.7 million.

If the rate increased to 3% and assuming the balance remains the same (but it should certainly increase), interest income on effective cash would rise to $766.8 million, and at 5%, the income would be $1.278 billion, or $1.18 in additional earnings per share, currently at $15.15 per share. This additional interest is a pre-tax number, but based on the company’s effective tax rate, additional earnings would still be close to a dollar a share.

Plus there are no other expenses incurred in generating this income. No salaries, no capital expenditures of manufacturing equipment, no purchase of raw materials, no office space rental, no nothing; just some electrons on a computer screen. Talk about easy money.

If you want to check out the lists of stocks which have a lot of cash, which can be downloaded, sorted, and updated, go to WallStreetNewsNetwork.com.

Disclosure: Author owns AAPL.


By Stockerblog.com

Wednesday, December 29, 2010

Warren Buffetts Next Door

The book The Warren Buffetts Next Door: The World's Greatest Investors You've Never Heard Of and What You Can Learn From Them by Matthew Schifrin is an interesting compilation of true stories about 'average Joes' who have made huge amounts of money in the stock market. Some use technical analysis, some use fundamental analysis, and some use gut feelings.

This book gives hope to every investor and trader. Each chapter covers a different person, describing what their occupation is, how old they are, their investment strategy, what broker they use, and what their favorite web sites and chat rooms are. Also, their best and worst picks, along with the long term track record. My favorite one is the Stock Angler in Chapter 9. The guy has a full time job, trades during the hour or two before he leaves for work, and has been able to achieve a 33% average annualized return since January 2003.

Every trader that is profiled provides an example of on of their successful trades, and shows how the decision was made to make the trade. I really like the last chapter which lists all the major investment websites which he calls Investor Incubators. You should read The Warren Buffetts Next Door for proof that you don't have to be Warren Buffett, George Soros, T. Boone Pickens, or Carl Icahn to be a successful stock trader.

The Problems with Our Educational System

Check out the real life exams and homework that was turned in, and note the teacher's comments. Some of these are funny, some of these are sad, some are both funny and sad.

Secret Year-End Tax Tips

I am not a CPA nor am I a tax attorney, and any of the following suggestions are just ideas that should be reviewed with your own CPA and/or tax attorney. Second, some of these suggestions may trigger or adversely affect the Alternative Minimum Tax, so talk to your tax advisor about this. I tried to come up with some uncommon tips that you normally wouldn't see written about elsewhere.

1. $20 Gold Pieces for Your Heirs
This is one I heard from a coin dealer, so be very skeptical about this and definitely run it by your accountant. The technique is to buy a bunch of rare $20 Gold Pieces which you will eventually leave to your heirs. When I say rare, I mean $100,000 or $200,000 for a coin. When you pass away, because the coins are still considered currency, they will only be valued at $20 each for estate tax purposes (according to this coin dealer). The coin dealer has other suggestions with these coins (i.e. being paid with them to reduce capital gains, etc.), but I'm even more skeptical about that. (Do you think the coin dealer has a hidden motive by saying this?) Like I said, ask your CPA or tax attorney.

2. Anonymous Donations to Charity
If you have ever wanted to make a totally anonymous donation to a charity (and there are several reasons you may want to) but still want to be able to take a tax deduction, here is what you can do. Go to your local post office and buy some Postal Money Orders. You are allowed up to $1000 per money order. Don't request more than three at once, otherwise the Post Office will request identification from you. On the money orders, write the name of the charity where it says "Pay to" along with the charity's address, but leave the part where it says "From" blank. However, on the receipt, which you will keep with your tax records, you can fill in your name as the sender. As for the original, send it in to the charitable organization in a plain envelope and no one will be able to trace it back to you.

3. Worthless Stocks
According to the IRS, "a taxpayer who owns stock that was acquired on the open market for investment and that has declined in value is allowed a deduction for a capital loss in the taxable year in which the stock is sold or exchanged or becomes wholly worthless." But the big question is "When do they become worthless?" Worthless is kind of a nebulous word. Just because a company declares bankruptcy, doesn't necessarily mean that the stock stops trading. And I've seen several stocks stop trading for a year or two then start up again. If you have the stock in the form of a certificate, there are companies that will buy your old certificates as collectibles. It may not be much, maybe only a dollar, unless the company is in an unusual industry or has an interesting picture on it. The sale might be considered a transaction for capital loss purposes, but you need to ask your advisor.

Please note, if a public company committed accounting fraud (e.g Enron), you cannot deduct the loss as a theft loss. The IRS states that they will disallow such deductions and may impose penalties.

4. Short Selling
If you are a short seller, and you short a lot of stocks that pay dividends, remember that technically you owe and pay the dividends to the owner of the shares that you shorted. Since this is an investment expense, make sure your accountant takes this into consideration.

5. Municipal Bonds from US Territories
For the owners of a diverse portfolio of municipal bonds who live in states with income taxes, remember that if you have any munis from Puerto Rico, the Virgin Islands, or Guam, the income is exempt from state income taxes. On the Tax Statement Form from brokerage firms, generally all income from municipal bonds are lumped together in the same section. If you live in California, and you own munis from New York, California, Puerto Rico, and Texas, the interest on the California and Puerto Rico bonds are exempt. Occasionally, staff workers at accounting firms may carve out (in this case) just the California interest, and lump all the other interest together, including the Puerto Rico interest, as taxable California income. Of course, it's always a good idea to check your entire return before you sign it.

You will of course see a lot of other tax saving tip articles this week. A couple things to keep in mind. Many income and deduction adjustments can trigger the AMT. Also, if you expect your income to be much higher next year, take a longer term approach to planning your deductions. As previously mentioned, check any tax techniques, the ones above and any others that you read about, with your tax advisor.

By Stockerblog.com

How to Get Unlimited FDIC Coverage on One Bank Account

All funds in a 'noninterest-bearing transaction account' are insured in full by the Federal Deposit Insurance Corporation from December 31, 2010 through December 31, 2012. This temporary unlimited coverage is in addition to, and separate from, the coverage of at least $250,000 available to depositors under the FDIC's general deposit insurance rules.

The term 'noninterest-bearing transaction account' includes a traditional checking account or demand deposit account on which the insured depository institution pays no interest. It does not include other accounts, such as traditional checking or demand deposit accounts that may earn interest, NOW accounts, money-market deposit accounts, and Interest on Lawyers Trust Accounts.

For more information about temporary FDIC insurance coverage of transaction accounts, visit http://www.fdic.gov.

Bond Trading Versus Stock Trading

Bond Trading Versus Stock Trading

Guest Article

Overview of bond trading


In the financial and investment market, bonds refer to a type of debt security whereby the issuer of the bond owes the purchaser a debt. Depending on the specific terms of the bond, the issuer is obligated to paying the purchaser interest and/or repays the total principle to the purchaser at a later date. This date is referred to as the maturity day. It is a formal financial contract the borrowed money is repaid with interest included and paid at fixed intervals throughout the life of that contract.

There are numerous types of bonds such as bearer bonds, fixed-rate, and many others. However one of the most common and popular are the municipal bonds which are typically issued by different government agencies such as a city or local governments, state governments, or US territories. The interest that the purchaser of the bond receives is normally exempt from federal and state income taxes.

Overview of stock trading


Even though stock trading is a common terminology, it is actually a misnomer because you really don’t trade shares of stock. You purchase them for the purposes of selling them at a profit. In the language of the financial and investment markets, you purchase and sell shares of stock either on the floor of one of the different stock exchanges or online. Additionally, the individual who purchases and sells shares of stocks is referred to as a stock trader.

Advantages and disadvantages bond trading


As with any type of financial and investment instrument, there are certain advantages and disadvantages to trading bonds. Although they tend to be much less aggressive than shares of stocks typically are, they usually provide the investor with a steady income stream. Over the long-term, this means that their performance might be poorer than what you would experience with stocks. Additionally, and like other investments, there are certain risks involved with bond investing.

The two primary advantages are those involving income and ratings. The income advantage is the fact that they are a safer investment than stocks while the rating advantage is a system that enables the investor to gauge a bond’s reliability. The key disadvantages involve risk and security. The former is associated with the fact that you can’t always trust those systems that rate bonds. The security disadvantage refers to the fact that the bond is only as good as what the borrower’s ability to repay the loan is.

Advantages and disadvantages of stock trading


As with trading in the bond market there are certain advantages and disadvantages where stock trading is concerned that you need to be aware of:

The key advantages are:

o better returns on one’s investment
o familiarity with the larger companies
o wide range of investment choices

The key disadvantages include:

o cost of shares
o leverage is typically lower than other forms of investments such as the FOREX market
o uptick rules regarding short selling meaning that you have to wait for the price of the stock to increase before you can short sell it

Tuesday, December 28, 2010

Book Review: The Disneyland Encyclopedia

I have been a fan of Walt Disney, Disneyland, and The Walt Disney Company (DIS) for many, many years, maybe since I was born. As a devotee (and fortunately a California resident), I have been to Disneyland numerous times, for birthdays, dates, high school graduation celebration, family vacations, etc. So I was very pleasantly surprised to receive as a gift the book The Disneyland Encyclopedia: The Unofficial, Unauthorized, and Unprecedented History of Every Land, Attraction, Restaurant, Shop, and Event in the Original Magic Kingdom by Chris Strodder.

This book is by far the most complete reference on Disneyland ever, covering every attraction that ever existed, every store and shop that was ever set up in the Magic Kingdom, even every restroom right down to the bathroom signs. The book also includes write-ups on the people involved in the design and building of Disneyland. It also covers interesting trivia about some of the Disneyland secrets such as Club 33 and what the names on many of the Main Street windows represent. (Here's a trivia question: where does the 33 come from for Club 33?)

I especially enjoyed reading the sections on the Haunted Mansion and Pirates of the Caribbean. If you like Disneyland and you like trivia, you will love The Disneyland Encyclopedia.

The Network is Your Customer

The quality of books I have been asked to review during the last month or so has gone way up; not sure why, but the last couple have been excellent. The one I'm reviewing now, The Network Is Your Customer: Five Strategies to Thrive in a Digital Age by David L. Rogers, is great. The books covers how to be successful in business through networking, using five strategies, access, engage, customize, connect, and collaborate.

I love the real life examples that he gives throughout the book, and includes both small (as small as one person) and large organizations. Chapter 8 is probably the most important one, describing how to implement his advice. Each step is broken down into easily understandable and implementable sub-steps. At the end of the book is a helpful self-assessment which allows you to determine how networked your organization is.

If you are involved with a business or even a non-profit organization, and your organizational networking could use come improvement, then I highly recommend The Network Is Your Customer.

Here's an Investment: Purse Weapon $13,100

A purse from the Almond Collection which originally sold for $345, was recently sold for $13,100 on eBay (EBAY). This was the purse that was used to hit a gunman at a Florida school board meeting. The proceeds will go to charity and will be matched by the purse manufacturer.

Founder of Vanguaard Group Speaking at Museum of American Finance

Speaking of Wall Street, John C. Bogle, Founder of Vanguard Group, will be speaking at the Museum of American Finance, located at 48 Wall Street, Manhattan, New York on January 19, 2011, 5:30pm to 7:00 pm. Free to members, $15 for non-members.

Sweater for Bull Statue on Wall Street

The 'Charging Bull' on Wall Street, a popular 7,000 pound bronze attraction for tourists, received a gift of a bright purple sweater. The sweater was removed a few hours after it was discovered on this Wall Street icon.

Monday, December 27, 2010

Chocolate Cough Medicine


What is it about chocolate and medical cures? Chocolate benefits keep appearing regularly. It supposedly reduces wrinkles and aging according to Barry Callebaut AG (BYCBF.PK) the large chocolate maker, and it is even good for your liver. Chocolate has even helped Warren Buffett's Berkshire Hathaway (BRK-A) (BRK-B) stock portfolio.

Now British scientists are working on developing a persistent cough remedy made out of chocolate. A company called SEEK, which is not publicly traded, is working on creating a drug called BC1036 which utilizes theobromine, a major ingredient in chocolate and cocoa.

Fortunately, there are several stocks with a significant exposure to chocolate, a few with dividends. Here are a couple that may be worth sinking your teeth into.

Hershey (HSY), founded in 1894 is the largest manufacturer of chocolate in North America and one of the largest candy companies in the world. Hershey's Kisses were invented in 1901 and their chocolate chips were released in 1928. The stock has a price to earnings ratio of 22, a forward PE of 17, with a delicious yield of 2.7%. It sports a price earnings growth ratio of 2.14.

Rocky Mountain Chocolate Factory Inc. (RMCF) based in Durango, Colorado, which makes and markets caramels, creams, mints, and truffles. The company, which was founded in 1981, has over 300 franchise locations in 40 states, along with Canada and the United Arab Emirates. The P/E is 15.4, and the company pays a very tasty yield of 4.2%.

If you want to see a free Excel list of all the publicly traded chocolate stocks, which can be downloaded, sorted, and updated, go to WallStreetNewsNetwork.com.

Disclosure: Author did not own any of the above at the time the article was written.

By Stockerblog.com

Stocks Going Ex Dividend the First Week of January


Here is our latest update on the stock trading technique called 'Buying Dividends'. This is the process of buying stocks before the ex dividend date and selling the stock shortly after the ex date at about the same price, yet still being entitled to the dividend. This technique generally works only in bull markets. In flat or choppy markets, you have to be extremely careful.

In order to be entitled to the dividend, you have to buy the stock before the ex-dividend date, and you can't sell the stock until after the ex date. The actual dividend may not be paid for another few weeks. WallStreetNewsNetwork.com has compiled a downloadable and sortable Excel list of the stocks going ex dividend during the next week or two. The list contains many dividend paying companies, all with market caps over $500 million, and yields over 2%. Here are a few examples showing the stock symbol, the market capitalization, the ex-dividend date and the yield.

Erie Indemnity Company (ERIE) market cap: $3.2B ex div date: 1/3/2011 yield: 3.2%

Raytheon Company (RTN) market cap: $16.6B ex div date: 1/3/2011 yield: 3.3%

Brandywine Realty Trust (BDN) market cap: $1.5B ex div date: 1/4/2011 yield: 5.3%

Toronto-Dominion Bank (TD) market cap: $64.5B ex div date: 1/4/2011 yield: 3.3%

Bristol Myers Squibb Co. (BMY) market cap: $45.4B 1/5/2011 yield: 5.0%

SYSCO Corporation (SYY) market cap: $17.0B ex div date: 1/5/2011 yield: 3.6%

General Mills, Inc. (GIS) market cap: $22.7B ex div date: 1/6/2011 yield: 3.1%

Progress Energy, Inc. (PGN) market cap: $12.7B ex div date: 1/6/2011 yield: 5.7%

The additional ex-dividend stocks can be found at wsnn.com. (If you have been to the website before, and the latest link doesn't show up, you may have to empty your cache.) If you like dividend stocks, you should check out the high yield utility stocks and the Monthly Dividend Stocks at WallStreetNewsNetwork.com or WSNN.com.

Dividend definitions:

Declaration date: the day that the company declares that there is going to be an upcoming dividend.

Ex-dividend date: the day on which if you buy the stock, you would not be entitled to that particular dividend; or the first day on which a shareholder can sell the shares and still be entitled to the dividend.

Record date: the day when you must be on the company's books as a shareholder to receive the dividend. The ex-dividend date is normally set for stocks two business days before the record date.

Payment date: the day on which the dividend payment is actually made, which can be as long at two months after the ex date.

Don't forget to reconfirm the ex-dividend date with the company before implementing this technique.

Disclosure: Author did not own any of the above at the time article was written.

By Stockerblog.com

Sunday, December 26, 2010

Get a Charge Out of High Yield Electric Utilities


There are many factors affecting the revenues and earnings of electric utilities. The sway of the Public Utilities Commissions, the source of fuel to run the generators along with the cost of the fuel, the efficiency of the organization, growth in the area served from both commercial and residential (don't see much of that lately), and many other factors. But if investors want a simple way of finding which electric utility stocks are successful with many of these issues, one way is to check and see if the companies have increased their dividend.

One example is OGE Energy Corp. (OGE), which pays one of the lowest yields of the top 30 electric utilities at 3.3% but has been increasing its dividend over time, providing annual increases since 2006. The company announced this month that it is increasing its annual dividend to $1.50 per share from $1.45 per share, effective the first quarter of 2011. OGE, which provides electricity in Oklahoma and western Arkansas, trades at 15 times forward earnings.

DPL Inc. (DPL) is another utility with a rising track record, increasing the quarterly dividend from $0.3025 to $0.3325 per common share this month, giving the stock a great CD beating yield of 4.6%. Dividends has risen every year since 2003. The stock has a forward price to earnings ratio of 10.8.

Edison International (EIX) also announced an increase in the annual dividend, from $1.26 per share to $1.28 per share. Dividends have been boosted since 2004. The stock trades at 12.8 times forward earnings and pays a yield of 3.3%.

To see a free Excel list of all the top yield electric utility stocks which can be downloaded, sorted, and updated, go to WallStreetNewsNetwork.com.

Disclosure: Author did not own any of the above at the time the article was written.

By Stockerblog.com

Wednesday, December 22, 2010

Christmas Carols Played on Apple iPads

Check it out. Christmas carols plyed entirely on Apple (AAPL) iPads. Merry Christmas!

Tuesday, December 21, 2010

Warren Buffett Trivia Part 2


Do you know everything there is about Warren Buffett, the billionaire head of Berkshire Hathaway?

1. Buffett attended Columbia Business School because Benjamin Graham and David Dodd taught there.

2. In 1951, he received a M.S. in Economics from Columbia Business School.

3. He made almost $10,000 by the age of 20 in 1950.

4. Buffett's father and Benjamin Graham told him not to work on Wall Street.

5. He taught a night class at the University of Nebraska-Omaha called Investment Principals.

6. He owned a Sinclair Texaco gas station in his early 20's.

7. His starting salary at Benjamin Graham's company was $12,000 a year.

8. When he was 26 years old, he had $174,000 in savings.

9. He became a millionaire in 1962.

10. Buffett first bought Berkshire Hathaway stock at $7.60 per share.

The Warren Buffett Trivia Part 1 can be found HERE.

If you want to see a list of all the high yield stocks that Warren Buffett has invested in through Berkshire Hathaway, go to WallStreetNewsNetwork.com.

Stay tuned for more Buffett trivia.

Almost Every Trader Should Read This Book

If you are a stock trader who makes money consistently, every day, every week, then you probably don't need to read this. However, if you are thinking of getting into day trading or short term trading, or have just started day trading or short term trading, or maybe you currently day trade or short term trade but you have big swings up and down in your account, then you need to read Trade the Trader: Know Your Competition and Find Your Edge for Profitable Trading by Quint Tatro.

Tatro has the experience and the track record to write this book and has become extremely successful as a trader. The book features many real life trading examples along with all the related charts. He talks about the three different methodologies for trading: anticipatory, reactionary, and delayed reactionary, and how to determine which is the best strategy for you (you can make money with any of the three strategies). Included is a chapter on how and where to set stop orders, and most important, another chapter on when to take profits. Lots of information is provided on technical trading and trend lines. Of course, to complete the book, a couple of chapters on the psychology of trading.

I have already put a couple of his trading techniques to work, very successfully I might add. I very highly recommend Trade the Trader.

Carl Icahn Pumps Gas

On Monday, it was announced that billionaire trader and investor Carl Icahn increased his stake in Chesapeake Energy (CHK) from from 16.6 million shares to 38.6 million shares, an increase of over 132%. This announcement set off a buying frenzy, causing the stock to jump almost 9% during the day. Of course, Chesapeake trades at 9.8 times forward earnings and is one of the natural gas utilities that pays a yield, giving its investors a payout of 1.3%.

According to WallStreetNewsNetwork.com, there are over 25 natural gas stock paying yields as high as 7%. For example, Atmos Energy Corporation (ATO) is a Dallas, Texas based distributor of natural gas that yields 4.3%. As a matter of fact, the company just increased its payout from $0.335 per quarter to $0.34, and has increased its dividend every year since 1989. The stock has a forward price to earnings ratio of 13 and recently reported a 20.9% increase in revenues.

TransCanada Corp. (TRP) is a Calgary, Alberta based natural gas distributor which has a dividend payout of 4.2%. It is also involved in electrical generation. The stock trades at 16 times forward earnings, with earnings rising for the latest quarter 13.3% on a 3.9% rise in revenues.

Northwest Natural Gas Company (NWN), which distributes gas in Washington, Oregon, and California, yields 3.7%. The stock has a forward PE of 16.7. However, revenues were down 18.6% for the latest quarter.

To see the entire list of natural gas stocks that pay dividends, which can be downloaded, sorted, and updated, go to WallStreetNewsNetwork.com.

Disclosure: Author didn't own any of the above at the time the article was written.


By Stockerblog.com

Sunday, December 19, 2010

What's Healthier: Vitamins or Stocks

Too bad there is no futures market for vitamins. When I tracked the prices of vitamins and nutrients, based on the Bureau of Labor Statistics information, versus the Standard and Poor's 500, I discovered that the vitamin prices greatly outperformed the S&P since June of 2001.

Over this period of time, vitamins were up 17.5% and the S&P 500 was down 3.6%. Check out the chart below. Vitamins are the blue line and the S&P is the red line.

If yu like these weird and interesting comparisons, check out Chocolate Chip Cookies versus the Stock Market, Stocks versus Steak, and Farms versus S&P 500.


By Stockerblog.com

Saturday, December 18, 2010

Update on STAR Ratings for Cramer, Buffett, Soros, and Pickens

IMDB.com, also known as Internet Movie Database, publishes STARmeter ratings of anyone who has ever had anything to do with show business. The STARmeter shows what people are interested in, based on the actual behavior of millions of IMDb users, showing if there is a high level of public awareness and/or interest in the person. Here is a list of several noted traders, investors, and other well-known individuals in the financial field, along with their STARrating change from last week.

Most of these people are down this week; not sure why.

George Soros -17%
Warren Buffett -13%
Jim Cramer -19%
Suze Orman +8%
Al Gore -2%
Robert Kiyosaki -31%
Bill Gates +1%
Maria Bartiromo -2%
Erin Burnett +6%
T. Boone Pickens +14%
Carl Icahn 0%
Stockerblog -49%

$7.2 Billion Recovered for Madoff Victims

PREET BHARARA, the United States Attorney for the Southern District of New York, ORLAN JOHNSON, the Chairman of the Securities Investor Protection Corporation ("SIPC"), IRVING PICARD, the Securities Investor Protection Act ("SIPA") Trustee, JANICE K. FEDARCYK, the Assistant Director-in-Charge of the New York Field Division of the Federal Bureau of Investigation ("FBI"), and CHARLES R. PINE, the Special Agent-in-Charge of the New York Field Office of the Internal Revenue Service ("IRS"), Criminal Investigation Division, announced today that the estate of JEFFRY M. PICOWER has agreed to forfeit $7,206,157,717 to the United States, representing all the profits that PICOWER withdrew over the years from Bernard L. Madoff Investment Securities LLC ("BLMIS"), the fraudulent investment advisory business owned and operated by BERNARD L. MADOFF. The distribution of funds to victims will be administered by IRVING H. PICARD in his dual capacities as the newly-appointed Department of Justice Special Master to assist the Department of Justice in connection with the victim remission proceedings and as the court-appointed trustee overseeing the liquidation of BLMIS under SIPA. The more than $7.2 billion forfeiture announced today constitutes the largest single forfeiture in U.S. history, and will be used to compensate victims of MADOFF’s fraud.

Mr. BHARARA said: "Today’s truly historic settlement with the estate of Jeffry Picower is a game-changer for Madoff’s victims. By returning every penny of the $7.2 billion her late husband received from BLMIS to help those who have suffered most, Barbara Picower has done the right thing. We will continue to work tirelessly with our partners from SIPC, the SIPA Trustee, the FBI, the IRS, and the U.S. Marshals Service to track down any and all proceeds of Madoff’s Ponzi scheme and return them to victims."

SIPC Chairman ORLAN JOHNSON said: "Since the discovery of the Madoff fraud, the United States Attorney, as well as the Trustee, Mr. Picard, his counsel, represented here by Mr. Sheehan, and SIPC personnel have worked relentlessly on the Madoff case. They have committed constant time, energy, and resources to benefit the victims of that fraud. The settlement announced today is an extraordinary achievement by all concerned. More than $7 billion dollars will be distributed to the victims. We will seek to distribute these proceeds as quickly as possible. This is by far the largest asset settlement in the 40 year history of SIPC. The result we see today shows that SIPC and the Securities Investor Protection Act can meet the challenges they face. Prior to today, SIPC had already advanced over $760 million to the Madoff victims. SIPC has also provided the financial wherewithal to conduct the research, investigation, and legal proceedings that led to this recovery, and, I am sure,
will lead to other recoveries in the future."

SIPA Trustee IRVING PICARD said: "The importance of this settlement cannot be overstated, as it shows significant progress in our efforts to assemble the largest Customer Fund possible. Every penny of this $7.2 billion settlement will be distributed to BLMIS customers with valid claims."

FBI Assistant Director-in-Charge JANICE K. FEDARCYK said: "Among the thousands of investors in the Bernard Madoff scheme were individuals so taken in by his confidence game that they invested the bulk of their net worth with him. The unprecedented settlement announced today means people who two years ago faced the devastating prospect of losing everything now stand to recover a significant portion of their investment."

IRS Special Agent-in-Charge CHARLES R. PINE said: "IRS Criminal Investigation has a unique role in Ponzi scheme related investigations. Our Special Agents come to the table with specialized talent and the ability to pour through transactional records, such as bank and brokerage account statements, and trace illegally earned income to other assets, such as cars, real estate, jewelry, and other highly valued items. IRS Criminal Investigators and its law enforcement partners will continue to work diligently in recovering assets to their rightful owners in illegal financial schemes."

According to the Stipulation and Order of Settlement, and accompanying civil forfeiture Complaint, filed in Manhattan federal court today:

The investment advisory business of BLMIS was operated as a massive Ponzi scheme from at least as early as the 1980s, defrauding investors of billions of dollars. Rather than use client funds to invest in securities, as promised, BLMIS diverted those funds to (a) pay other clients’ redemption requests; (b) fund transactions to disguise BLMIS’s fraud; and (c) enrich Madoff, his family, and his associates. In order to support the lie that BLMIS was operating a legitimate investment advisory business, BLMIS created and disseminated fictitious account statements that, among other things, showed trades that never actually took place. During the course of the fraud, MADOFF’s clients lost approximately $20 billion in funds they invested with BLMIS.

Since at least the late 1970s, JEFFRY M. PICOWER was an investor in BLMIS, holding an account in his own name and controlling accounts held by various individuals and entities. Over the course of his 30-plus year relationship with BLMIS, PICOWER withdrew a net total of $7,206,157,717 in profits from BLMIS. When MADOFF was arrested in December 2008 and his fraud was revealed, it became clear that PICOWER - like all of BLMIS’s investors who withdrew more money than they invested - had profited at the expense of more recent BLMIS investors.

PICOWER died in October 2009. In his will, PICOWER sought to establish a charitable foundation, which was to receive the overwhelming majority of his fortune, and continue his lifelong dedication to philanthropy and to funding medical research. In order to resolve potential civil claims by the Government against PICOWER’s estate, and to enable the creation of the foundation called for in PICOWER’s will, the estate, through PICOWER’s widow BARBARA PICOWER, has agreed to give up the entire net total of any and all funds that PICOWER or any related entity received from BLMIS. The Settlement contains no finding or admission of fault against PICOWER, and his estate has claimed that neither PICOWER nor any of the related entities participating in the settlement had any involvement in, or knowledge of, MADOFF’s fraud.

The United States Attorney’s Office will use funds forfeited in the settlement announced today to compensate victims of MADOFF’s fraud. Last week, in connection with a $625 million settlement involving the Office, the SIPA Trustee, and CARL SHAPIRO and his family, MR. BHARARA announced that the Department of Justice had appointed IRVING H. PICARD as Special Master to oversee the process of remission or mitigation under the forfeiture laws. PICARD is already serving as the court-appointed trustee for BLMIS under SIPA. Under the terms of today’s settlement, and a related settlement submitted to the United States Bankruptcy Court for the Southern District of New York, PICARD will administer $5.0 billion of the funds being returned to Madoff’s victims by the PICOWER estate through the SIPA liquidation proceedings. He also will administer the remaining approximately $2,206,157,717 through the Department of Justice’s remission or mitigation process.

Mr. BHARARA praised the work of SIPC and the SIPA Trustee. He also thanked the Federal Bureau of Investigation, the Internal Revenue Service, Criminal Investigation Division, the Securities and Exchange Commission, and the United States Marshals Service. Mr. BHARARA also thanked the U.S. Department of Labor’s Employee Benefits Security Administration and Office of the Inspector General for their work in this matter. Finally, he thanked the Department of Justice’s Asset Forfeiture and Money Laundering Section for their assistance.

This case was brought in coordination with President BARACK OBAMA’s Financial Fraud Enforcement Task Force, on which Mr. BHARARA serves as a Co-Chair of the Securities and Commodities Fraud Working Group. President OBAMA established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for
victims of financial crimes.

Assistant United States Attorneys LISA A. BARONI, JULIAN J. MOORE, BARBARA A. WARD, and MATTHEW L. SCHWARTZ are in charge of the case.

Thunder Cloud Stocks


Yesterday, Rackspace Hosting (RAX) just announced the purchase of Cloudkick, a private company involved in the creation of web applications for efficient cloud-server management. This will certainly expand the presence of Rackspace in the cloud industry. Last month, Isilon (ISLN) shares jumped over 28% in one day, after EMC (EMC) announced it would take over the company. Expect to see a lot more of these cloud takeovers, including the publicly traded companies.

One way to define cloud computing is having your programs and data stored remotely on a server far away, instead of on individual computers. As long as you have an Internet connection, you can have a fairly dumb computer ans still utilize cloud computing. The clouds are simply the servers of companies that provide this service, and those servers can be located anywhere in the world. If you have Yahoo (YHOO) mail, Google (GOOG) gmail, or hotmail, then you are using cloud computing in a small way. You don't have the email servers in your office or home, you use the Yahoo or Google servers. Many colleges and universities are turning over their student email services to Google, which saves them money on servers and saves on staffing for support.

These same benefits apply to the private sector, especially when you extend it to data storage and computer software. You don't need a technician to come out and install new software to each employees' station. You don't need a bunch of network administrators monitoring the company's servers. You don't need to periodically upgrade computers. You don't need to own a bunch of servers. You cut down on the costs and issues relating to the disposal of old computers and servers. You don't need to deal with data security, as that is the job of the cloud computing company. The benefits of clouds are extensive, and there are over 25 stocks in the cloud industry to choose from, according to the Cloud Computer Stock list at WallStreetNewsNetwork.com, including companies involved in server farms and outsourced storage systems.

Cloud computing as a growing industry now appears almost every day in the financial press. And the interest from investors has been significant. Take for example Salesforce.com (CRM), which is up over 600% since it started trading in 2004.

Salesforce.com is a provider of customer-relationship management services that has promoted 'the end of software'. Salesforce has customers of all sizes, including Corporate Express division of Staples (SPLS), Daiwa Securities (DSECY.PK), Expedia (EXPE), Dow Jones Newswires subsidiary of News Corp. (NWS-A), SunTrust Banks (STI), and Kaiser Permanente. Salesforce trades at a lofty 89 times forward earnings, debt in the amount of $495 million, with over $769 million in cash. The company just reported a quarterly sales increase of 29.8% year over year, with a 1.8% increase in earnings.

VMware (VMW) is another major cloud and virtualization player. Its product VMware vSphere is a cloud computing data center platform. It sports a forward PE ratio of 49.6. The company has $450 million in debt with $2.9 billion in cash. The company reported that latest earnings increased an incredible 121.4% in earnings on a 45.8% increase in revenues.

Citrix Systems, Inc. (CTXS) provides on demand applications and online services, including GoToMeeting, GoToWebinar, GoToTraining, GoToAssist, and GoToMyPC. This debt free company has $902 million in cash and carries a forward PE of 30. The latest quarterly earnings were up 64.3% on a revenue increase of 17.8%.

To access a free Excel spreadsheet database of numerous companies involved in cloud computing in some way, that can be downloaded, sorted, and updated, go to wsnn.com. You can also get info on the green aspects of cloud computing from my book The Green Light on Green Stocks: A Quick Guide to Green Investing and Making Money in Alternative Energy Stocks, in which I described cloud computing as a green industry and a way of providing money saving services to many corporations.

Disclosure: Author owns YHOO.


By Stockerblog.com

Stocks Going Ex Dividend the Fifth Week of December


Here is our latest update on the stock trading technique called 'Buying Dividends'. This is the process of buying stocks before the ex dividend date and selling the stock shortly after the ex date at about the same price, yet still being entitled to the dividend. This technique generally works only in bull markets. In flat or choppy markets, you have to be extremely careful.

In order to be entitled to the dividend, you have to buy the stock before the ex-dividend date, and you can't sell the stock until after the ex date. The actual dividend may not be paid for another few weeks. WallStreetNewsNetwork.com has compiled a downloadable and sortable Excel list of the stocks going ex dividend during the next week or two. The list contains many dividend paying companies, all with market caps over $500 million, and yields over 2%. Here are a few examples showing the stock symbol, the ex-dividend date and the yield.

Boardwalk REIT (BOWFF) market cap: $2.0B ex div date: 12/29/2010 yield: 4.3%

Nicor Inc. (GAS) market cap: $2.0B ex div date: 12/29/2010 yield: 4.2%

Molex Incorporated (MOLX) market cap: $3.6B ex div date: 12/29/2010 yield: 3.4%

National Health Investors Inc (NHI) market cap: $1.2B ex div date: 12/29/2010 yield: 5.4%

TransCanada Corporation (TRP) market cap: $24.4B ex div date: 12/29/2010 yield: 4.4%

Kimco Realty Corporation (KIM) market cap: $6.7B ex div date: 12/30/2010 yield: 4.4%

Superior Industries International Inc. (SUP) market cap: $511.6M ex div date: 12/30/2010 yield: 3.3%

The additional ex-dividend stocks can be found at wsnn.com. (If you have been to the website before, and the latest link doesn't show up, you may have to empty your cache.) If you like dividend stocks, you should check out the high yield utility stocks and the Monthly Dividend Stocks at WallStreetNewsNetwork.com or WSNN.com.

Dividend definitions:

Declaration date: the day that the company declares that there is going to be an upcoming dividend.

Ex-dividend date: the day on which if you buy the stock, you would not be entitled to that particular dividend; or the first day on which a shareholder can sell the shares and still be entitled to the dividend.

Record date: the day when you must be on the company's books as a shareholder to receive the dividend. The ex-dividend date is normally set for stocks two business days before the record date.

Payment date: the day on which the dividend payment is actually made, which can be as long at two months after the ex date.

Don't forget to reconfirm the ex-dividend date with the company before implementing this technique.

Disclosure: Author did not own any of the above at the time article was written.

By Stockerblog.com

Friday, December 17, 2010

Irish Wanking Bankers

Another great video referral from Casey Research. An Irishman's opinion of the Irish financial crisis. PLEASE NOTE: This video includes inappropriate four letter words. If you are offended, don't watch.

Why the World Economy Sucks

Thanks to Casey Research for pointing out this video on Europe's economic woes.

Last Minute Gift Ideas: Get a Gold Bar from a Vending Machine


Have you run out of ideas for gifts? You still have a week left, and there are plenty of items that can still be ordered on time and arrive by Christmas.

Do you live near Boca Raton, Florida? If so, you can go to the Town Center Mall and see the new Gold Vending Machine, which dispenses many different types and weights of gold bars and gold coins, including Krugerrands, Kangaroos, and Maple Leafs. All the items come in gift boxes, ready to present to the special people in your life.

Can you guess what Amazon's (AMZN) number one item is? If you said the Kindle, you are correct. You have a choice of the Graphite Kindle or the White Kindle.

If you can't think of any specific gift, you can always get an Amazon.com Gift Card.

Of cours, if you are looking for the high end items, you can still purchase some of the gifts on the BillionairesLife.com Christmas List, which includes a diamond encrusted chess set.

Happy shopping!

Thursday, December 16, 2010

Green Christmas Stocks: High Yield Retailer Companies


If the economy really is starting to turn around and consumers are buying again, then this could end up being a green, as in money, Christmas. Amazon (AMZN) should be one of the biggest beneficiaries of the holiday buying season, but it doesn't pay a dividend. Obviously, there are plenty of retail stocks, sometimes referred to as consumer cyclical stocks, to choose from, but not that many that pay high dividends. WallStreetNewsNetwork.com has developed a list of over 35 retailers that pay yields ranging from 2% to greater than 6%.

Mattel Inc. (MAT) is the largest toy company in the United States, known for its Barbie Dolls, Hot Wheels, Matchbox toys, View-Masters, and numerous other toy products. The stock yields 3.3% and trades at 13 times forward earnings. Quarterly earnings were up 23% on a 2.3% rise in quarterly revenues. Total dividend payouts of $297 million are easily covered by operating cash flow of $846 million.

Cherokee Inc. (CHKE) markets apparel and footwear under the brand names of Cherokee, Sideout, Carole Little, Saint Tropez-West, Chorus Line, and All That Jazz. the company gives out a substantial dividend yield of 7.9%, which is paid out on a quarterly basis. The stock has a price to earnings ratio of 15. The company just reported a 16% drop in earnings per share, but on the positive side, its balance sheet remains debt free.

Philips Electronics NV (PHG) makes everything from MP3 players to digital picture frames to flat panel TVs to electric toothbrushes. The stock pay a dividend of 2.6% and trades at 14 times forward earnings. Earnings for the latest quarter were up an incredible 201% on a 9.6% rise in revenues. The stock has 6.32 in cash per share.

To see a free downloadable Excel list of high yield retailer stocks, which can be sorted and updated, go to WallStreetNewsNetwork.com.

Disclosure: Author owns AMZN and MAT.


By Stockerblog.com

Tuesday, December 14, 2010

Stocks with Lots of Cash and No Debt

Cash is king. If you don't believe it, look at Apple (AAPL), with more than $25 billion in cash. On top of that, the company is debt free. Maybe that is why the stock is up over 345% over the last five years.

Many investors look for debt free stocks selling at or near cash per share. These are stocks which have virtually no debt and are trading close to the amount of cash the company has on a per share basis. Without any debt and a lot of cash, it would be hard for a company to go out of business, unless it is a biotech company with a high burn rate. In addition, the cash might make the company a possible takeover candidate.

WallStreetNewsNetwork.com just updated its list of Low Price to Cash per Share Ratio Stocks with No Debt, which shows the recent price, cash per share, forward PE, and price per cash ratio. Almost all the stocks have price to cash ratios less than 4.

On example is Electronic Arts Inc. (ERTS), the video game manufacturer, has $4.99 in cash per share, with the stock selling at less than 15.80, giving it a 3.16 price to cash ratio. The company, with no debt, has a forward PE of 18.8.

FormFactor Inc. (FORM) is another stock with lots of cash. This debt-free manufacturer of semiconductor wafer probe card products, which sells for less than 9.50 per share, has a significant $7.35 per share in cash. Recent earnings were negative, however, revenues for the latest quarter were up 8.2%.

If you want a free downloadable Excel list of ten stocks that have a Low Price to Cash Ratio with No Debt, go to wsnn.com.

Disclosure: Author did not own any of the above stocks at the time the article was written.

By Stockerblog.com

Sunday, December 12, 2010

Tax Selling Bargain Stocks

One popular stock trading technique that has proven successful with many short term investors is buying stocks that are beaten down during the month of December. These are the stocks which have dropped due to people dumping their shares which were purchased at much higher prices, in order to take a tax loss establishing the loss in the 2010 calendar year. Many shareholders own stocks that they have held for three or four years, or even longer that are currently trading at a loss. The investors may need to take a loss to offset a capital gain that was generated this year. The sellers usually wait to the end of the year to dispose of their shareholdings, driving down the prices in December.

There are over 35 companies that have dropped more than 70% during the last 52 weeks, according to WallStreetNewsNetwork.com, which could include many tax selling bargain opportunities. Just remember, you want to be in and out of these stocks quickly, as the drop in stock price could be due to more than just tax selling.

Flagstar Bancorp Inc. (FBC), a Troy, Michigan based banking company, had had a huge drop. The stock traded above $5 a share back in May and even higher earlier in the year on a pre-split basis; it now trades at less than $1.50 per share. Although the company's latest earnings were negative, quarterly revenues were up 218%. The stock trades at way below its book value of $5.30, and trades at 47 times forward earnings. Earlier this year, FBR Capital upgraded its rating of the stock from Market Perform to Outperform.

Broadwind Energy, Inc. (BWEN) is another company that has taken a big dump, dropping from over $9.80 per share last December to less than $2 now. This wind tower manufacturing company has a forward price to earnings ratio of 197, with current earnings being negative. The book value is $1.64.

The bio-pharmaceutical company Affymax, Inc. (AFFY) traded for about $25 per share during the last year, but now trades at slightly above $6 a share. Recent quarterly earnings were negative but the company is debt free and has $4.14 in cash per share. Last month, WBB Securities initiated coverage on the stock giving it a Buy rating. At the same time, WBB Securities upgraded the stock from a Hold to a Buy.

To see a free list of the rest of the stocks that have dropped more than 70% during the last year and trade for at least a dollar a share, go to WallStreetNewsNetwork.com. The Excel list can be downloaded, sorted, and updated.

Disclosure: Author didn't own any of the above at the time the article was written.


By Stockerblog.com

Exclusive Interview with Ken Fisher Part 7 - Can Traders Make Money

Ken Fisher is a money manager, and on the list of the Forbes 400 Richest Americans. He is also a Forbes columnist, where he recently recommended several income stocks, such as Sims Metal Management (SMS), Net Servicos de Comunicacao (NETC), and PetroChina (PTR). His latest book, Debunkery: Learn It, Do It, and Profit from It-Seeing Through Wall Street's Money-Killing Myths was just published. He is also author of several other books, including The Ten Roads to Riches: The Ways the Wealthy Got There (And How You Can Too!) and How to Smell a Rat: The Five Signs of Financial Fraud

Ken Fisher Interview Part 7
Please note: The complete interview took place on Wednesday, October 27, 2010


Stockerblog:
There was an article recently about how some investors got early retirement, they had nothing better to do, did a lot of research on their stocks, and were very successful. The article talked about one guy who built his portfolio from $30,000 to $3,000,000. Do you think that article was about an aberration or just looking at one end of the bell curve?


Fisher:
That's looking at the very few people who are definitely one tip of the bell curve.

And it's not the average investor that could possibly consider it unless they had an extreme amount of luck to achieve anywhere near that.

The average investor by definition cannot do that. The average investor cannot possibly beat the market. The average investor, at most, can equal the market.


Stockerblog:
Speaking of playing the market, the Bunk chapter on swine flu and some of the other things. It seems like someone who trades or does short term investing could actually play the opposite of some of these bunks. The swine flu could be an example or some other major catastrophe where the market has a temporary sell-off, and if you are mentally set to go into the market to do the opposite, a trader could actually do fairly well playing to opposite of the common bunks. Would you agree with that?


Fisher:
I think that's possible but for the average person that thinks it’s a trade, that he or she is a trader, is exceptionally unlikely. In fact, when we look at the history of traders, most of them don't do very well.

Said another way, if you say who are the traders we can think of that have become legendary investors, are really, really rich and successful as traders, there aren't very many of them; although we have a lot of traders in total, which tells you that it's another one of those things where it’s a tip of the bell curve where people have a knack to do that but they're very unusual and they are probably least like our primitive stone age ancestors. They probably have the leave behavioral finance issues embedded into their brains for some reason.

But there aren't very many of those people and the odds of anyone being one of those people is small.

If the person that can trade these things, which I do believe there are people who can do it but its not me that's for sure, if there are people good enough to trade these, they are good enough to trade all kinds of other things.

So another one of the bunks that you will remember reading about is my comments about gold, and gold is basically a thing where if you're a very good trader, gold might be a good thing for you but gold has had an OK return but a huge volatility over time, and 85% of history on a monthly basis has lost money, and made all its total return out of 15% of the months. If you're a good enough trader, you should be able to trade gold successfully and you should be able to trade all kins of other things too. And you don't need an trading advice from me, that's for darn sure.

The fundamental nature of those rare George Soros like traders or Paul Tudor Jones type people, the people at have made money off of trading that have gotten good returns and have had some consistency, because you can trade gold, you can trade oil, you can probably trade swine flu, but most people aren't very good traders.

End of Part 7

The Debunkery book is available at Amazon.

Ken Fisher obviously doesn't give individual stock recommendations in his interviews, but some stocks he likes that were mentioned in his recent Forbes columns, including high dividend stocks, are available in the form of a free Excel list at WallStreetNewsNetwork.com.

Part 1 of this interview is available HERE.

Part 2 of this interview is available HERE.

Part 3 of this interview is available HERE.

Part 4 of this interview is available HERE.

Part 5 of this interview is available HERE.

Part 6 of this interview is available HERE.

By Fred Fuld at Stockerblog.com

Disclosure: Interviewer doesn't own any of the stocks mentioned in this interview series at the time the articles were written.


Copyright 2010. All rights reserved. Reproduction of this interview prohibited without permission. All opinions are those of Ken Fisher, and do not represent the opinions of Stockerblog.com or the interviewer. Neither Stockerblog nor the interviewer nor the interviewee are rendering tax, legal, or investment advice in this interview. If you want tax, legal, or investment advice, contact the appropriate professional.

Saturday, December 11, 2010

Top Yielding Stocks Selling Below Book Value

Imagine that you own shares of a company that has a million shares that are trading for $10 per share. This would give the company a market capitalization of $10 million. Now further imagine that if you add up all the assets of the company, such as bank accounts, inventory, equipment, and real estate, it comes to $15 million, then adding all the liabilities such as debt and short term loans amounts to $3 million. When you subtract the liabilities from the assets, it gives the company a net worth of $12 million. Divide that number by the million shares and you end up with a $12 per share book value, in very simple terms. What that means is, also in very simple terms, if you buy the stock today and the company goes out of business today, you would end up with a $2 or 20% increase in your investment.

Many stocks sell below book value for numerous reasons. The industry or sector could fall out of favor, tax selling, and a bearish stock market are just a few examples. WallStreetNewsNetwork.com has turned up a list of over 25 stocks selling at or below book value, most of which have yields above 3.5%. One example is Telecom Italia S.p.A. (TI), the large Italian telecom company which provides fixed-line and mobile telecommunications, Internet, and media services throughout the country. The Italian government may be suffering but Italians are still making phone calls. The stock is trading at two thirds of book value and pays a yield of 3.5%. Earnings for the latest quarter were up over 207% on flat revenues. The stock trades at 15 times forward earnings.

Great Plains Energy Incorporated (GXP) is another discounted stock. This electric utility, which serves Missouri and Kansas, is selling at 87% of book value and sports a yield of 4.3%. Earnings for the latest quarter were up 67% on a 24% revenue increase. It sports a forward price to earnings ratio of 12.

The shares of Brandywine Realty Trust (BDN) are trading at 77% of book and yield 5.5%. This REIT owns office and industrial properties. The stock trades at 8.5 times forward earnings.

To see the complete list of the major high yield stocks trading below book value, which can be downloaded, sorted, and updated, go to WallStreetNewsNetwork.com. Fourteen of the stocks have yields above 5% and four provide yields over 7%.

Disclosure: Author did not own any of the above at the time the article was written.


By Stockerblog.com

Stocks Going Ex Dividend the Fourth Week of December


Here is our latest update on the stock trading technique called 'Buying Dividends'. This is the process of buying stocks before the ex dividend date and selling the stock shortly after the ex date at about the same price, yet still being entitled to the dividend. This technique generally works only in bull markets. In flat or choppy markets, you have to be extremely careful.

In order to be entitled to the dividend, you have to buy the stock before the ex-dividend date, and you can't sell the stock until after the ex date. The actual dividend may not be paid for another few weeks. WallStreetNewsNetwork.com has compiled a downloadable and sortable Excel list of the stocks going ex dividend during the next week or two. The list contains many dividend paying companies, all with market caps over $500 million, and yields over 2%. Here are a few examples showing the stock symbol, the ex-dividend date and the yield.

H.J. Heinz Company (HNZ) market cap: $15.5B ex div date: 12/20/2010 yield: 3.8%

Campbell Soup Company (CPB) market cap: $11.7B ex div date: 12/22/2010 yield: 3.4%

Portland General Electric Company (POR) market cap: $1.6B ex div date: 12/22/2010 yield: 5.0%

The additional ex-dividend stocks can be found at wsnn.com. (If you have been to the website before, and the latest link doesn't show up, you may have to empty your cache.) If you like dividend stocks, you should check out the high yield utility stocks and the Monthly Dividend Stocks at WallStreetNewsNetwork.com or WSNN.com.

Dividend definitions:

Declaration date: the day that the company declares that there is going to be an upcoming dividend.

Ex-dividend date: the day on which if you buy the stock, you would not be entitled to that particular dividend; or the first day on which a shareholder can sell the shares and still be entitled to the dividend.

Record date: the day when you must be on the company's books as a shareholder to receive the dividend. The ex-dividend date is normally set for stocks two business days before the record date.

Payment date: the day on which the dividend payment is actually made, which can be as long at two months after the ex date.

Don't forget to reconfirm the ex-dividend date with the company before implementing this technique.

Disclosure: Author does not own any of the above at the time article was written.

By Stockerblog.com

How to Get Free Holiday Music Downloads - from Amazon - Legally

This month, Amazon.com (AMZN) is giving away free holiday music downloads which you can transfer to your Apple (AAPL) iPod or iPhone or other mp3 player. Each day, Amazon announces a new piece of music, and so far they have given away eleven, all of which can still be downloaded for free. This free offer will only last a couple more weeks, and each day you will need to check with Amazon to see what the latest song is. You may need to download the Amazon downloader, but that only takes about 20 seconds.

Here are six of the free songs:

White Winter Hymnal

Your Holiday Song

Winter Games

O Come, All Ye Faithful

Angels We Have Heard On High

Auld Lang Syne

Disclosure: Author owns both AMZN and AAPL.

By Stockerblog.com

Bernie Madoff's Son is Dead

Mark Madoff, the oldest son of swindler Bernard Madoff, has reportedly used a dog leash to hang himself in his Manhattan SoHo apartment. His two year old son was in the next room. His wife and daughter were not home at the time. He was discovered by his father-in-law. Mark Madoff wasn't charged in his father's investment swindle, but was the one who turned his father in to authorities.

His wife changed her last name and the last names of their two children due to the stress of the scandal. The death was reportedly due to suicide.

Book Review: The Roth Revolution

Don't waste time. The end of the calendar year is almost here. If you have money in a regular Individual Retirement Account, get The Roth Revolution: Pay Taxes Once and Never Again and read it. This is the most complete and easy to understand book on Roth IRA conversions that I have ever read.

The author, James Lang, was the first person to ever write a peer reviewed article on Roth conversions. He provides plenty of tables, charts, and graphs to make this topic easy to comprehend. He also includes several real life stories involving Roth IRAs. He covers how to measure the benefits of a conversion, why you may not want to convert your entire IRA, how much you should convert, and the risks and pitfalls of a Roth IRA conversion. Probably one of the most important sections in the book is 'What if you Don't have the Money to Pay the Tax on the Conversion Outside the IRA'. He even gives specifics on what you should do depending on what tax bracket you are in.

Anyone who has an IRA and not a Roth IRA should read The Roth Revolution now.

Friday, December 10, 2010

A Great Combo: Debt Free, High Cash, High Yield

When investors look for stocks, they often run screeners, which extract stocks that meet certain criteria. Conservative investors always look for high yields; but beyond that, there are screens that narrow the list to more quality companies. This additional criteria can include low or no debt and a high cash position. WallStreetNewsNetwork.com just updated its free list of High Cash No Debt High Yield Stocks, and includes over 20 companies, showing the stock symbol, market cap, forward price-to-earnings ratio, cash per share, yield, and cash per share as a percentage of price.

Garmin Ltd. (GRMN) is a company that fits this criteria. This is the $5.85 billion market cap debt free company that makes global positioning system, or GPS products. The stock sports a 4.9% yield and forward PE ratio of 11.8. It has a nice cushion of $6.50 in cash per share.

Superior Industries International, Inc. (SUP), a manufacturer of aluminum road wheels, pays a yield of 3.1% and carries a forward PE of 13. The stock has an amazing $5.09 in cash per share and has no debt.

Weis Markets (WMK), a retail supermarket chain, which is a $1.06 billion market cap company, has $5.03 in cash per share, a PE of 15, and a yield of 3.0%.

To see the entire list of High Cash No Debt High Yield Stocks, which you can sort, change, and update, go to WallStreetNewsNetwork.com.

Disclosure: Author does not own any of the above.

By Stockerblog.com

The Day the Dollar Died

If you are into gloom and doom, or you just want to know what the gloom and doomers are predicting, you should check out this video.

Thursday, December 09, 2010

Warren Buffett Trivia

Do you know everything to know about Warren Buffett, the billionaire head of Berkshire Hathaway?

1. Warren Buffett's father was a republican congressman.

2. Warren Buffett is of Huguenot ancestry.

3. His first stock purchase was three shares of Cities Service Preferred purchased when he was eleven years old.

4. When he was fourteen years old, he filed his first tax return, which listed his watch and bicycle as a tax deduction of $35 for his paper route.

5. He was a capitalist at a very young age, not only delivering newspapers, but selling magazine subscriptions door-to-door, selling golf balls, and selling Coca-Cola (KO).

6. He owned a chain of pinball machines in various barber shops when he was fifteen years old.

7. In his high school yearbook, under his picture, it says 'likes math; a future stock broker.'

8. He received his B.S. in Economics from the University of Nebraska–Lincoln when he was only 19 years old.

9. He paid $31,500 for the Omaha house he lives in today (although he bought it 52 years ago).

10. He owns a house in Laguna Beach, California

If you want to see a list of all the high yield stocks that Warren Buffett has invested in through Berkshire Hathaway, go to WallStreetNewsNetwork.com.

Stay tuned for more Buffett trivia.

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When you place the order through the above links, you just need to enter the code HOLIDAY305. The deadline is December 14 for the ground shipping offer.

Tuesday, December 07, 2010

Update on High Yield China Stocks


China is planning interest rate hikes later this week, causing many Chinese stocks to drop in price. The country is making this move in order to keep inflation under control. Now that the news is out, it may be a buying opportunity. Investors who are willing to take the risk of investing in China stocks are choosing ones that pay dividends, in order to reduce risk by returning capital faster and possibly reducing volatility.

WallStreetNewsNetwork.com has just updated its list of over a dozen China stocks that pay dividends with yields ranging from one percent to as much as 7.5%.

The wireless telecom company, China Mobile Limited (CHL) trades at 11.6 times forward earnings and yields 3.3%. Dividends are paid twice a year.

PetroChina Co. Ltd. (PTR) has been paying dividends since 2000, and pays twice a year also, most recently in May and September. This producer of oil and natural gas has a forward PE of 9.9 and pays a yield of 3.3%.

Another China company with a long term track record of paying dividends is China Petroleum & Chemical Corp. (SNP), which has been paying semi-annually since 2001. This oil, gas, and chemical company has a forward PE of 6.6 and yields 2.3%.

For a free Excel database of over a dozen high yielding China stocks, which can be sorted and updated, go to wsnn.com. Eight of the stocks have yields in excess of 2%.

Author does not own any of the above.

By Stockerblog.com

Monday, December 06, 2010

Stocks Going Ex Dividend the Third Week of December


Here is our latest update on the stock trading technique called 'Buying Dividends'. This is the process of buying stocks before the ex dividend date and selling the stock shortly after the ex date at about the same price, yet still being entitled to the dividend. This technique generally works only in bull markets. In flat or choppy markets, you have to be extremely careful.

In order to be entitled to the dividend, you have to buy the stock before the ex-dividend date, and you can't sell the stock until after the ex date. The actual dividend may not be paid for another few weeks. WallStreetNewsNetwork.com has compiled a downloadable and sortable Excel list of the stocks going ex dividend during the next week or two. The list contains many dividend paying companies, all with market caps over $500 million, and yields over 2%. Here are a few examples showing the stock symbol, the ex-dividend date and the yield.

Ares Capital Corporation (ARCC) market cap: $3.2B ex div date: 12/13/2010 yield: 8.6%

BancorpSouth, Inc. (BXS) market cap: $1.1B ex div date: 12/13/2010 yield: 6.8%

Corus Entertainment Inc. (CJREF) market cap: $1.7B ex div date: 12/13/2010 yield: 3.6%

Chesapeake Utilities Corporation (CPK) market cap: $361.1M ex div date: 12/13/2010 yield: 3.5%

Cellcom Israel Ltd. (CEL) market cap: $3.4B ex div date: 12/13/2010 yield: 10.5%

Navios Maritime Holdings Inc. (NM) market cap: $559.6M ex div date: 12/14/2010 yield: 4.3%

OneBeacon Insurance Group, Ltd. (OB) market cap: $1.4B ex div date: 12/15/2010 yield: 5.7%

Solar Capital Ltd. (SLRC) market cap: $778.5M ex div date: 12/15/2010 yield: 10.2%

The additional ex-dividend stocks can be found at wsnn.com. (If you have been to the website before, and the latest link doesn't show up, you may have to empty your cache.) If you like dividend stocks, you should check out the high yield utility stocks and the Monthly Dividend Stocks at WallStreetNewsNetwork.com or WSNN.com.

Dividend definitions:

Declaration date: the day that the company declares that there is going to be an upcoming dividend.

Ex-dividend date: the day on which if you buy the stock, you would not be entitled to that particular dividend; or the first day on which a shareholder can sell the shares and still be entitled to the dividend.

Record date: the day when you must be on the company's books as a shareholder to receive the dividend. The ex-dividend date is normally set for stocks two business days before the record date.

Payment date: the day on which the dividend payment is actually made, which can be as long at two months after the ex date.

Don't forget to reconfirm the ex-dividend date with the company before implementing this technique.

Disclosure: Author does not own any of the above at the time article was written.

By Stockerblog.com

Sunday, December 05, 2010

Seven Buffett Stocks Yielding Over 3%

Warren Buffett doesn't believe in the proliferation of weapons of mass destruction, and is willing to put his mouth where his money is. He has put up $50 million in support of a proposal to set up an atomic fuel bank authorized by the United Nations nuclear agency. These funds are just a small portion of the fortune he created as chairman and chief executive of Berkshire Hathaway (BRK-A) (BRK-B).

Many investors feel that following in Buffett's footsteps will lead to riches. Income investors think that the top yielding Buffett stocks may be the best way to provide income and give some growth potential. WallStreetNewsNetwork.com has just updated its list of stocks owned by Warren Buffett's Berkshire Hathaway and turned up seven of them with yields greater than 3%.

ConocoPhillips (COP), the multi-national oil company, is one of Buffett's favorites which yields 3.5%. The stock trades at 10.2 times forward earnings, The company reported that earnings for the latest quarter more than doubled on an 18.8% revenue increase.

Johnson & Johnson (JNJ), the company that makes everything from Bandaids to Neutrogena to Listerine to Tylenol, also has a dividend payout rate of 3.5%. The stock has a forward price to earnings ratio of 12.5, with an earnings report showing a 2.2% earnings increase on a slight drop in revenues.

M&T Bank Corp. (MTB), based in Buffalo, New York, is another high yielder owned by Buffett, paying 3.6%. The stock sports a forward PE of 13.5. Recent quarterly earnings were up 50% on a revenue boost of 19%.

To see the rest of the high yield Warren Buffett stocks, check out the free downloadable Excel list which can be sorted and updated at WallStreetNewsNetwork.com.

Disclosure: Author does not own any of the above.


By Stockerblog.com

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