Can Pfizer Continue to Outperform?

With shares of Pfizer (NYSE:PFE) trading around $32, is PFE an OUTPERFORM, WAIT AND SEE, or STAY AWAY? Let's analyze the stock with the relevant sections of our CHEAT SHEET investing framework:

T = Trends for a Stock’s Movement

Pfizer's rival Novartis is racing the former to develop a promising new type of breast cancer drug, which analysts believe could bring billions of dollars in yearly sales. The Swiss drug maker, which has prior to this kept its research program undercover, revealed Friday that its experimental pill LEE011 is primed to enter final-stage Phase III clinical trials in December. Pfizer's rival drug palbociclib is already in Phase III testing, but Novartis' rapid progress means the group could face competition rather sooner than anticipated. Both drugs are pills, and work by blocking two enzymes called cyclin dependent kinases 4 and 6.

Pfizer's rival Novartis is racing the former to develop a promising new type of breast cancer drug, which analysts believe could bring billions of dollars in yearly sales. The Swiss drug maker, which has prior to this kept its research program undercover, revealed Friday that its experimental pill LEE011 is primed to enter final-stage Phase III clinical trials in December. Pfizer's rival drug palbociclib is already in Phase III testing, but Novartis' rapid progress means the group could face competition rather sooner than anticipated. Both drugs are pills, and work by blocking two enzymes called cyclin dependent kinases 4 and 6.

T = Technicals on the Stock Chart Are Strong

Pfizer stock has been moving higher in the last couple of years. The stock is currently rising and looks set to continue this path. Analyzing the price trend and its strength can be done using key simple moving averages. What are the key moving averages? The 50-day (pink), 100-day (blue), and 200-day (yellow) simple moving averages. As seen in the daily price chart below, Pfizer is trading above its rising key averages, which signal neutral to bullish price action in the near-term.

(Source: Thinkorswim)

Taking a look at the implied volatility (red) and implied volatility skew levels of Pfizer options may help determine if investors are bullish, neutral, or bearish.

	Implied Volatility (IV)	30-Day IV Percentile	90-Day IV Percentile
Pfizer Options	15.59%	36%	34%

What does this mean? This means that investors or traders are buying a minimal amount of call and put options contracts as compared to the last 30 and 90 trading days.

	Put IV Skew	Call IV Skew
December Options	Flat	Average
January Options	Flat	Average

As of today, there is an average demand from call buyers or sellers and low demand by put buyers or high demand by put sellers, all neutral to bullish over the next two months. To summarize, investors are buying a minimal amount of call and put option contracts and are leaning neutral to bullish over the next two months.

On the next page, let’s take a look at the earnings and revenue growth rates and the conclusion.

E = Earnings Are Mixed Quarter-Over-Quarter

Rising stock prices are often strongly correlated with rising earnings and revenue growth rates. Also, the last four quarterly earnings announcement reactions help gauge investor sentiment on Pfizer’s stock. What do the last four quarterly earnings and revenue growth (Y-O-Y) figures for Pfizer look like and more importantly, how did the markets like these numbers?

	2013 Q3	2013 Q2	2013 Q1	2012 Q4
Earnings Growth (Y-O-Y)	-9.30%	360.50%	58.33%	358.00%
Revenue Growth (Y-O-Y)	-2.39%	-7.12%	-9.30%	-6.65%
Earnings Reaction	1.67%	0.44%	-4.46%	3.20%

Pfizer has seen increasing earnings and decreasing revenue figures over the last four quarters. From these numbers, the markets have had conflicting feelings about Pfizer’s recent earnings announcements.

P = Excellent Relative Performance Versus Peers and Sector

How has Pfizer stock done relative to its peers, Merck (NYSE:MRK), Novartis (NYSE:NVS), Sanofi (NYSE:SNY), and sector?

	Pfizer	Merck	Novartis	Sanofi	Sector
Year-to-Date Return	29.23%	20.64%	25.64%	11.46%	22.74%

Pfizer has been a relative performance leader, year-to-date.

Conclusion

Pfizer discovers and develops medicines for people and animals around the world. The company’s rival Novartis is racing the former to develop a promising new type of breast cancer drug. The stock has been trending higher in recent years and is currently rising looking set to continue. Over the last four quarters, earnings have been increasing while revenues have been decreasing, which has produced conflicting feelings among investors about recent earnings announcements. Relative to its peers and sector, Pfizer has been an excellent performance leader year-to-date. Look  for Pfizer to OUTPERFORM.

This Company Will Get Rich from UHDTV

After perusing all the displays at the massive Consumer Electronics Show in Las Vegas earlier this month, tech-sector pundits began touting ultra-high-definition television (UHDTV) as one of the next big "breakout" technologies for 2014.

This wasn't a surprise to you.

Back in August, we said that specialty microchip maker Ambarella Inc. (Nasdaq: AMBA) would be a major beneficiary of the UHDTV surge and predicted the stock could double in just over two years.

It actually took only five months, and we now believe it will double again.

But we also know this isn't the only company benefitting from the powerful shift toward the new UHDTV standard - and so we set out to find the "next Ambarella."

Last week, we found it.

The stock we discovered is about to be ignited by two powerful catalysts - the multi-billion-dollar shift to UHDTV and a shrewd strategic shift that's going to twist open the profit spigot.

It's a stock we believe could easily double from here, making it one of the best tech stocks to buy in 2014.

And today we're going to show you all that you need to know to pocket every penny of those gains...

Tech Stocks to Buy: A Highly Defined Profit Opportunity

The shift from the current HDTV standard to the new UHDTV opportunity is one of the most exciting things to hit television in years.

This technology also is known as "4K" because these new, sharper-definition TV sets display 4,000 horizontal lines of video, making them roughly four times sharper than the images displayed on current HDTVs.

The Consumer Electronics Association - the trade group that runs CES - predicted that just 23,000 UHDTVs would be sold in the U.S. market in 2013. But that figure will soar to 1.43 million sets, or roughly 5% of TVs sold nationally, by the end of 2016 - a 60-fold increase.

NPD DisplaySearch has an even more aggressive outlook and sees nearly a sevenfold increase next year alone. NPD estimates that sales came in at 1.9 million for 2013 and predicts that sales will rise to 12.7 million in 2014.

And by 2017, UHDTVs will account for nearly one-fourth of all televisions of greater than 50 inches sold in the U.S. market, NPD projects.

But there's a problem.

You see, the UHDTV revolution presents us with a classic "chicken-or-the-egg" quandary. Before consumers will buy these new TVs - which are still pretty expensive - there has to be content to display on them.

But before the "content creators" - the studios, the sports broadcasters, and even cool new ventures like online video giant Netflix Inc. (Nasdaq: NFLX) - will create the needed new programming, they'll want to know there's an audience to view it.

This latter obstacle isn't a small one. Filming content in 4K will require broadcasters to make a massive investment in new cameras, recording equipment, displays, and all the support gear and software needed to run it.

Consider the case of Discovery Communications Inc. (Nasdaq: DISCA), the world's leading creator of documentary-style content. The company recently said it wants to upgrade to 4K for shows it runs on such networks as the Discovery Channel, TLC, Animal Planet, and Science.

The Discovery Channel was an early backer of the current HD format, and the company believes its visually rich shows are perfectly suited for the new 4K standard.

However, Discovery officials don't want to take the large and bulky ultra-HD cameras out to remote locales like the Amazon or Alaska's Bering Sea, the setting for its hit commercial-fishing drama Deadliest Catch.

What Discovery and broadcasters really need is some sort of temporary solution that will serve as a "bridge" between their current HD cameras and all that costly new gear they'll have to have to film and broadcast in the 4K format that will come to life on the new UHDTVs.

Given the outlays involved, we knew someone would solve that interim problem.

And Ericsson (Nasdaq ADR: ERIC), the Swedish telecom giant that's engineering a corporate turnaround of its own, was the one to pull it off.

Ericsson's Magic Box

Long known as a maker of networking gear for the mobile-telecommunications industry, Ericsson also focuses on the broadcast and media sectors with an array of video-processing equipment and related products.

And to capitalize on the 4K market, Ericsson recently developed a specialized audio/video platform. It's built on an advanced processing chip that Ericsson designed specially to serve the TV broadcast industry.

The rack-mounted "black-box" device allows production firms to use either standard-definition or HD TV cameras and supercharges those signals into the ultra-sharp UHDTV video format.

Ericsson says it's already proved that this "converter box" is ready for primetime. All last year, in fact, the Stockholm-based company participated in numerous live trials held throughout the world.

These tests included multi-camera productions, proving that its 4K consoles can support the simultaneous audio-and-video streams that are standard fare in the professional broadcast market.

And make no mistake: There's a big, big opportunity here. In the U.S. market alone, TV production equipment is a $35 billion business, says market researcher IBIS World. Any company that can help a broadcaster stretch a dollar by extending the useful life of already purchased cameras, recording gear, and the supporting equipment and software is going to find an enthusiastic customer base.

And this 4K TV opportunity can act as an additional boost for Ericsson's network-infrastructure equipment. Right now, 40% of the world's mobile traffic runs through networks that use Ericsson gear. When you add up all the wired broadband networks in which it's involved, Ericsson says it supports 2.5 billion web users around the world.

If you think about it, there are some very intriguing synergies between these two Ericsson businesses. Because 4K images are so much richer, UHDTV will pressure broadband providers to upgrade their network to handle all that super-sharp-resolution video. So that means the company should see a ramp-up in orders for its networking gear.

Just to be clear here, 4K isn't some Silicon Valley "vaporware" that will never make a market splash.

Indeed, the afore-mentioned Netflix already sees the profit potential behind UHDTV.

Beginning next month, Netflix will broadcast the second season of its award-winning House of Cards original TV series in the new format. In fact, Netflix has already formed an alliance of TV set manufacturers to support its broadcasts. Firms like Korea's LG or Japan's Sony Corp. (NYSE ADR: SNE) are going to install special digital "decoders" that will enable their monitors to display 4K-quality video.

And given Netflix's growing stature, other content creators are going to have to follow suit to keep from being left behind.

All of this adds up into a hefty growth opportunity for Ericsson.

But as we told you at the start, there's a second catalyst for the stock - which we believe can provide some additional oomph.

We're referring to the corporate restructuring the company is already working through.

Ericsson (Nasdaq ADR: ERIC): A Real Rebound

Ericsson's entry into 4K comes after the company has exited two mobile-sector joint ventures (JVs) that went off the tracks.

In the first one, which dates back to 2001, Ericsson joined forces with consumer-electronics powerhouse Sony. With high hopes, each company invested the equivalent of $370 million at today's exchange rates.

Unfortunately, Sony Ericsson was never more than an also-ran. By the time Sony bought the full business in 2011 for roughly $1.5 billion, the duo's phones accounted for just 1.7% of the global handset market - only half the market share the JV had boasted the year before.

In 2009, Ericsson hooked up with STMicroelectronics NV (NYSE ADR: STM) - Europe's No. 1 chipmaker - to produce semiconductors for the wireless market. Launched in 2009, this also was ill-fated.

The two firms focused on low-cost feature phones but the market quickly moved toward the smartphones that can surf the wireless web, capture photos and video, and run hundreds of apps.

Smartphone sales subsequently zoomed: According to market-researcher IDC, smartphones will grow from about 40% of the wireless market at the end of 2012 to more than 60% by the end of next year.

Faced with that dooming market shift, STMicro and Ericsson unwound the joint venture.

The good news is that Ericsson can now focus on the growth markets for 4K video, and those for wireless and wired networks.

Although the company has a current market cap of $38 billion, its stock sells for just $12 a share. That's not just a low price; it's also a cheap price: Ericsson trades at just 14 times forward earnings, even though the firm grew profits in last year's third quarter by 36%.

And it has the fuel to maintain that growth: Ericsson has a portfolio containing an estimated 33,000 high-tech patents and also has $5.2 billion of cash on hand.

Now that Ericsson has cleaned up its balance sheet and dumped its money-losing joint ventures, I think the stock could double from here - and go even higher from there.

Don't forget, this is a stock that was trading at $42 a share as recently as January 2007. And today it's a much-healthier and better-focused company - with UHDTV, the "mobile revolution," and a shrewd corporate overhaul providing a brisk tailwind.

We'll get an even better sense of how well Ericsson is doing when it reports its fourth-quarter and full-year results on Jan. 30.

You can rest assured that I have plugged Ericsson into my own "black box" and will be tracking its progress from here.

And if the company continues to improve as I expect, you will be able to boast about having doubled your money in two "4K" stocks - long before most retail investors even see what's happening here.

But keeping you ahead of the high-tech curve and finding the best tech stocks to buy is Job One at Strategic Tech Investor. It's a job that I enjoy... and also take a lot of pride in.

[Editor's Note: In Tuesday's Strategic Tech Investor, we told you we had a great new profit play for you. And today we believe we kept our promise. But it doesn't stop here. And if you want to see what else I'm working on, check this out.]

Japan stocks ease from three-week high

LOS ANGELES (MarketWatch) -- Japanese equities slipped in early trade Tuesday after the benchmark in the previous session closed at its best level in more than three weeks. The Nikkei Stock Average (JP:NIK) shed 0.1% to 14,672.76, but the broader Topix index tacked on nearly 0.1%. Transportion shares were among the decliners, and stock in 7-Eleven chain operator Seven & I Holdings Co. (JP:3382) fell 0.9% after a trade group said September same-store sales at convenience stores fell 1.6% on a year-over-year basis. Automotive shares were mostly lower ahead of the release of U.S. labor data for September, due later Tuesday. In the group, stock in Mazda Motor Corp. (JP:7261) (MZDAF) shed 0.2%, but Toyota Motor Corp. (JP:7203) (TM) outperformed by climbing 1.1%.

Debt drama weighs on stock market

Click chart for more markets data.

NEW YORK (CNNMoney) The debt deadlock is finally starting to rattle investors.

During the first six days of the government shutdown, investors had a relatively blase attitude toward the drama in Washington.

Now, as Congress is pushing the United States closer and closer to breaching its debt ceiling and possibly forcing the government into its first default, investors are getting scared.

Top 5 Companies To Buy Right Now

The Dow Jones Industrial Average, the S&P 500, and the Nasdaq fell nearly 1% at Monday's open.

By midmorning, all three indexes regained some ground, but were still down between 0.3% and 0.5%.

Click here for more on stocks, bonds, currencies and commodities

Investors around the world are also becoming increasingly concerned. European markets fell in afternoon trading, and most Asian markets ended with losses.

The dollar strengthened against the euro but remained weak against the yen and British pound.

Warning bells are ringing: The government shutdown is in day 7, and lawmakers appear no closer to resolving the impasse.

On Sunday, Treasury Secretary Jack Lew said that Congress was "playing with fire," and warned the U.S. could default in just over a week.

Analysts are starting to sound alarm bells.

Last week, Bank of America analysts said that the government shutdown wouldn't impact fourth-quarter GDP growth. But over the weekend, they changed their tune and lowered growth estimates for the fourth quarter to 2% from 2.5%.

ETX Capital market strategist Ishaq Siddiqi said the debt ceiling debacle could lead to a "subsequent meltdown of global asset prices."

Earnings kick off thi! s week: The first corporate results for the third quarter come out Tuesday, when aluminum maker Alcoa (AA, Fortune 500) reports after the market close. Two of the biggest banks -- Dow component JPMorgan Chase (JPM, Fortune 500)and Wells Fargo (WFC, Fortune 500) report Friday morning.

Analysts fear that weak third quarter earnings could also weigh on stock prices.

What's moving: Shares of Apple (AAPL, Fortune 500) rose, after the iPhone maker was upgraded by Jefferies.

Shares of BlackBerry (BBRY)gained 4% on rumors that new buyers are emerging for the troubled smartphone maker.

Bank stocks, including JPMorgan, Bank of America (BAC, Fortune 500), Citigroup (C, Fortune 500), and Goldman Sachs (GZPHF), dropped roughly 1%.

IAC/InterActiveCorp (IACI): How Attractive Is Match Business?

IAC InterActive Corp. (NASDAQ:IACI) should see improved margins and revenue from its Match business as subscriber growth could be boosted by favorable secular trends and new monetizing opportunities.

Founded in 1993 and launched in 1995, Match.com is now one of the most recognized online properties in the world. Since its acquisition in June 1999 by IAC, Match has expanded its business portfolio to include PeopleMedia (2009), Singlesnet (2010), OkCupid (2011), Meetic (2011), Twoo (2013) and more. Based on comScore worldwide desktop Internet traffic data, these sites collectively comprise the most visited online dating platform in the world

Investors have been intrigued by this business given favorable secular trends, which many expect will support future subscriber growth. These include continued growth in the population of single adults, changing social perceptions related to online dating and greater Internet penetration globally particularly mobile, which enables more targeted, location-based functionality.

"We are bullish on Match and derive a $3.5b enterprise value for the Match segment. Given this valuation, the remainder of the business appears to be significantly undervalued," UBS analyst Eric Sheridan wrote in a note to clients.

Match is the second-largest segment at IAC by revenue (behind Search & Applications), comprising 26 percent of IAC's total sales in 2012. The segment's revenues have grown 78 percent over the past two years (29 percent in 2011 and 38 percent in 2012), largely driven by acquisitions.

In total, as of the second quarter 2013, Match featured 3.2 million subscribers, up 15 percent from last year. The business has three divisions – Core, Meetic, and Developing.

Out of the total subscribers, Core subscribers comprised 61 percent, Meetic accounted for 25 percent, and Developing subscribers represented 14 percent.

"We believe organic growth can continue at a low double-digit rate driven by the aforementioned secular growth driver! s (which we expect will translate to mid-single digit subscriber growth), as well as monetization initiatives to improve revenue per subscriber within specific Match brands," Sheridan noted.

Year-over-year Core subscriber growth has been relatively consistent in the high single-digit range over the past four quarters, and it is expected to moderate gradually into the mid-to-low single digit range over time.

In addition, Match Stir Events and Offline Game Nights provide additional revenue opportunities on top of recurring subscription fees.

Originally founded in 2001, Meetic is Europe's largest dating site, operating in 15 countries with approximately 25,000 new members joining every day. The company has been listed on the EURONEXT PARIS since 2005.

Meetic has now produced three consecutive quarters of subscriber growth. Adjusting for write-offs, the company has experienced two consecutive quarters of revenue growth, as well.

Management has since shifted its priorities for Meetic from "stabilize" to "grow" (in terms of subscribers, revenues and profits). Like Core Match, Meetic has introduced additional revenue streams to help achieve this goal. More specifically, in December 2012, Meetic introduced Meetic Soirees – group gatherings designed for singles similar to Match Stir Events.

"We expect that revenue per subscriber will begin to improve in 2014; however, over the next two years, we expect the majority of revenue growth will be driven by subscriber additions," Sheridan said.

IAC's Developing revenues are comprised of primarily ad-driven websites, including OkCupid, DateHookup, Kiss.com (formerly Singlesnet), and Twoo. Also in this bucket are Match's non-European international operations and Tinder.

While IAC plans to grow revenue from these sites, it views many of these properties as acquisition tools for its paid subscription offerings.

In the first two quarters of 2013, Developing revenues benefited from the addition of Twoo, though at a lo! wer reven! ue per user. Looking forward, organic revenue growth expected in the high-to-mid teens primarily driven by subscriber growth, but with improving revenue per subscriber trends along the way.

Moreover, Tinder, which has ranked among the top 25 iOS Social Networking apps in the U.S. since January, has yet to be monetized, and could offer meaningful upside in the future.

In addition to its secular revenue growth prospects, investors have also been attracted to Match's margin profile. Specifically, Match features higher operating income margins margins than the rest of IAC – 32 percent versus 16 percent for overall IAC in 2012.

"Looking forward, we believe margins for Match will continue to drift higher towards the 35% mark," Sheridan said.

The company should see a decline in marketing and acquisition costs over Match business. The heavy marketing spend till date to drive subscriber growth and to promote its new monetization initiatives could provide a source of leverage going forward as this spending rolls off.

Furthermore, if management's strategy around free-to-join sites is successful (i.e., using OkCupid and Tinder to funnel users towards paid sites), customer acquisition costs could be lower going forward.

"As IAC further integrates the businesses acquired within the Match portfolio, we believe there are opportunities to leverage R&D and G&A expenses across the platform globally," Sheridan added.

New monetization initiatives, a reduction in marketing spend & acquisition costs, and opportunities to leverage Match's global scale should lead to margin improvement over time.

Top 10 Services Stocks To Own For 2014

The biggest financial threat that most investors face is the effect of inflation on purchasing power. Yet lately, most signs of inflation have just about disappeared. Is the threat of inflation finally behind us, or are investors ignoring inflation to their peril at the worst possible moment?

Why inflation matters
Millions of conservative investors happily put their money in low-yielding bank accounts and fixed-income securities, secure in the belief that they're investing safely. Yet the apparent stability in the nominal value of their investments hides the fact that their money won't be able to buy nearly as much in goods and services in the future as it did in the past.

In recent years, though, investors have discounted the potential impact of inflation on their portfolios. Consider these facts:

Gold is the traditional safe-haven investment for those who believe that inflation will take away the purchasing power of paper currency. Yet the plunge in gold prices has led to a mass exodus of investor interest in gold, with the popular SPDR Gold Trust (NYSEMKT: GLD  ) losing billions of dollars not just due to price declines but also as investors have taken money out of the ETF entirely. Inflation-indexed bonds like the Treasury's TIPS have climbed so far in price that their real inflation-adjusted yields are negative, even for bonds that don't mature for another 20 years. That's been excellent news for existing investors in iShares Barclays TIPS Bond (NYSEMKT: TIP  ) and similar inflation-indexed bond investments, but it presents no inflation protection for those considering purchases now. The sole fly in the inflation ointment has come from energy prices, with gasoline and heating-oil prices having remained stubbornly high despite plentiful domestic production from unconventional plays as refiners Phillips 66 (NYSE: PSX  ) , Valero (NYSE: VLO  ) , and others have greatly boosted their exports of refined products rather than letting Americans reap the benefits of high supply. Yet even the oil market has seen international spreads narrow, and gasoline prices have finally started to come down modestly, providing further downward pressure on inflation.

Based on the conventional understanding of inflation, you'd think that all these signs of its demise were a good thing. The truth is far less clear.

Top 10 Services Stocks To Own For 2014: Tech Data Corporation(TECD)

Tech Data Corporation engages in the wholesale distribution of technology products in North America, South America, Europe, the Middle East, and Africa. It distributes and markets approximately 150,000 products, including computer peripherals, physical security, consumer electronics, digital signage, and mobility hardware, as well as provides logistics management services. The company also provides a range of services, such as training and technical support, customized shipping documents, product configuration/integration, and access to flexible financing programs, as well as a suite of electronic commerce tools comprising Internet order entry and electric data interchange services. It serves approximately 125,000 value-added resellers, direct marketers, retailers, and corporate resellers. The company was founded in 1974 and is based in Clearwater, Florida.

Top 10 Services Stocks To Own For 2014: Solar Power Inc (SOPW.PK)

Solar Power, Inc., incorporated on May 22, 2006, is a global solar energy facility (SEF) developer offering SEF development services. The Company offers an approach to design, engineer and construct photovoltaic (PV) solar systems for commercial and utility applications. In addition to developing SEFs using products manufactured by LDK Solar Co., Ltd. (LDK), its parent company, the Company also sells solar modules and balance of system components manufactured by third party vendors to other integrators in the United States, Asian, and European markets. In June 2012, the Company acquired 100% interest in Italy-based Solar Green Technologies (SGT) from LDK Solar Europe Holdings S.A., a wholly owned subsidiary of LDK Solar Co., Ltd.

In addition to designing, engineering and constructing SEFs, the Company also provides long-term operations and maintenance (O&M) services through its O&M program SPIGuardianTM. This service program provides a suite of services tha t commence upon a facility�� commissioning to provide performance monitoring, system reporting, preventative maintenance and full warranty support over the anticipated life of the SEF.

The Company competes with Sun Power Corporation, First Solar, SPG Solar, Sun Edison, Kyocera Corporation, Mitsubishi, Solar World AG, Sharp Corporation, Yiugli, Solar Fun and Suntech and Canadian Solar.

5 Best Performing Stocks To Invest In Right Now: North American Oil & Gas Corp (NAMG.OB)

Calendar Dragon Inc., incorporated on April 7, 2010, is a development-stage company. The Company was formed to create a new calendaring tool that incorporates a range of features not offered by other providers, all in one lean online package. Its Website www.calendardragon.com was formed to bridge the gap between current social networking, e-mail and calendaring / scheduling activities for the individual, with applications to business, government, law enforcement, and medical.

The calendardragon.com Website focuses on having each of the various windows within the interface: Contacts like an email app, traditional left location; Events & to do lists along with ability to hide / show events and to do lists with others; Calendar customizable view; Message text (thread), along with list of participants in a separate pane, and Options. During the fiscal year ended November 30, 2010, the Company did not generate any revenue.

Top 10 Services Stocks To Own For 2014: Herbalife Ltd (HLF)

Herbalife Ltd., incorporated on April 4, 2002, is a global network marketing company that sells weight management, nutritional supplements, energy, sports and fitness products and personal care products through a network of approximately 2.7 million independent distributors, except in China, where the Company sells its products through retail stores. The Company is a network marketing company that sells a range of weight management products, nutritional supplements and personal care products. As of December 31, 2011, the Company sold products in 79 countries throughout the world. Herbalife�� products are grouped in four principal categories: weight management, targeted nutrition, energy, sports and fitness and Outer Nutrition, along with literature and promotional items. The Company�� generates revenue from its six regions: North America, Mexico, South and Central America; EMEA, which consists of Europe, the Middle East and Africa, Asia Pacific (excluding China), and China. On December 31, 2012, the Company acquired a manufacturing facility in Winston-Salem, North Carolina.

The Company�� products are manufactured by third party providers and by the Company in its Suzhou, China facility and in its manufacturing facility located in Lake Forest, California, and then are sold to independent distributors who sell Herbalife products to retail consumers or other distributors. As of December 31, 2011, Herbalife marketed and sold 138 products encompassing over 4,400 stock keeping units (SKUs) through its distributors.

Weight Management

Weight Management is the Company�� largest product category representing 62.5% of its net sales during the year ended December 31, 2011. Formula 1, its product, is a healthy meal with soy protein, essential vitamins, minerals, herbs and nutrients that is available in seven flavors and can help support weight management. Personalized Protein Powder is a soy and whey protein product designed as a boost to Formula 1 to personalize a pe! rson�� daily protein intake to help achieve their desired weight and shape. Weight-loss enhancers, including Herbal Tea Concentrate, Total Control and Prolessa Duo address specific challenges associated with dieting, such as lack of energy, hunger and food craving, fluid retention, decreased metabolism and digestive challenges, by building energy, boosting metabolism, curbing appetite and helping to promote weight loss. Healthy snacks are formulated to provide between-meal nutrition and appetite satisfaction.

Targeted Nutrition

Herbalife markets numerous dietary and nutritional supplements designed to meet its customers��specific nutritional needs. Each of these supplements contains botanicals, vitamins, minerals and other natural ingredients and focuses on specific life stages of its customers, including women, men, children and those with health concerns, including heart health, healthy aging, digestive health, or immune solutions. Niteworks is a product that supports energy, circulatory and vascular health and enhances blood flow to the heart, brain and other vital organs. Garden 7 is designed to provide the phytonutrient benefits of seven servings of fruits and vegetables and has anti-oxidant and health-boosting properties. Best Defense is an effervescent drink that helps boost immunity. In 2011, the Company expanded distribution of its Active Fiber line by introducing its Apple flavored Active Fiber Complex in the South and Central America region.

Energy, Sports and Fitness

Herbalife entered into the energy drink with the introduction of Liftoff, an energy drink containing a blend of B-vitamins, guarana, ginseng, ginkgo and caffeine to increase energy and improve mental clarity for better performance throughout the day. It launched H3Otm Fitness Drink to provide hydration, sustained muscle energy plus antioxidant protection for people living a healthy, active lifestyle. It also introduced H30 Pro in EMEA to provide an isotonic drink to indivi! duals par! ticipating in high activity sports.

Outer Nutrition

The Company�� Outer Nutrition products complement its weight management and targeted nutrition products and aim to improve the appearance of the body, skin and hair. These products include skin cleansers, toners, moisturizers and facial masks, shampoos and conditioners, body-wash items and a selection of fragrances for men and women. Its Herbal Aloe line is its introductory line providing distributors with cleansers, lotions and soaps that help sooth the skin. NouriFusion Multivitamin skin care products are formulated with antioxidant Vitamins A, C and E. It launched a line of anti-aging products as an extension of its Skin Activator product, an advanced face cream that contains a collagen-building Glucosamine Complex to reduce the appearance of fine lines and wrinkles. It also launched a number of regional products including a Soft Green Body Care line in Brazil, the Whitening Serum under the NouriFusion brand in the Asia Pacific region, and the Lively Fragrances perfume line.

Literature, Promotional and Other Products

Herbalife also sells literature and promotional materials, including sales aids, informational audiotapes, videotapes, compact discs (CDs) and digital versatile discs (DVDs) designed to support its distributors��marketing efforts, as well as start-up kits called International Business Packs for new distributors. It introduced BizWorks, a customizable retail Website for its distributors to enhance the on-line experience.

The Company competes with NuSkin Enterprises, Nature�� Sunshine, Alticor/Amway, Melaleuca, Avon Products, Oriflame, Tupperware and Mary Kay, Weight Watchers, Jenny Craig, General Nutrition Centers and Wal-Mart.

Advisors' Opinion:

• [By Matt DiLallo]

  Another even more recent example is the high-profile short-sale argument against Herbalife (NYSE: HLF  ) �This case also drew in the SEC as another famed short-seller had called the company "the best-managed pyramid scheme in the history of the world." Because many investors have rules to sell when the SEC is involved, it creates a lot of selling pressure as investors bail, which can make a lot of money for a short-seller.

• [By Jayson Derrick]

  Shares of Herbalife (NYSE: HLF) are also underselling pressure, even though the company is in no way connected to Nu Skin's developing story. In the third quarter of 2013, Herbalife's sales in China grew by 77 percent and make up around 11 percent of its overall sales.

Top 10 Services Stocks To Own For 2014: Primco Management Inc (PMCM.OB)

Primco Management Inc., incorporated on October 14, 2010, is a development-stage company. The Company focuses on offering estate management services for its clients and retention on a range of properties including class A office space, industrial, manufacturing, and warehousing facilities as well as data centers and retail outlets for real estate users. In addition, it also focuses on offering consulting services, including site selection, feasibility studies, exit strategies, market forecasts, strategic planning, and research services. In February 2013, the Company announced that ESMG, Inc. took controlling interest in the Company through the acquisition of more than 80% interest of the Company. In February 2013, it purchased the music catalog of D&B Music. In May 2013, the Company acquired Top Sail Productions.

As of December 31, 2010, the Company did not have any operations. During the year ended December 31, 2010, it did not generate any revenues.

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Top 10 Services Stocks To Own For 2014: Starwood Hotels & Resorts Worldwide Inc.(HOT)

Starwood Hotels & Resorts Worldwide Inc. operates as a hotel and leisure company worldwide. The company operates luxury and upscale full service hotels, select-service hotels, extended stay hotels, resorts, retreats, and residences under St. Regis, The Luxury Collection, W, Westin, Le M�idien, Sheraton, Four Points, Aloft, and Element brand names. It also engages in the development and operation of vacation ownership resorts; marketing and selling vacation ownership interests in the resorts; and provision of financing to customers who purchase such interests. In addition, the company develops, markets, and sells residential units at mixed use hotel projects. As of December 31, 2011, its hotel portfolio included 1,076 owned, managed, or franchised hotels with approximately 315,300 rooms; and 13 stand-alone vacation ownership resorts and residential properties. The company was founded in 1969 and is headquartered in Stamford, Connecticut. Starwood Hotels & Resorts Worldwid e Inc. operates independently of ITT Corporation as of December 19, 1995.

Advisors' Opinion:

• [By Matt Thalman]

  In the following video, Fool contributor Matt Thalman discusses a few metrics and areas investors should focus their attention on when looking at Starwood's (NYSE: HOT  ) upcoming earnings report.

• [By Jon C. Ogg]

  Starwood�Hotels & Resorts Worldwide Inc. (NYSE: HOT) is a winner if the higher end rooms are working better than the lower-end room rates. Its hotels and destinations include sucn brands as St. Regis, The Luxury Collection, W, Westin, Le M茅ridien, Sheraton, Four Points and Element. After a drop of almost 4% on Tuesday, this stock is down 10% from its highs as well, and analysts have upside of about 15% expected for its investors.

• [By CRWE]

  Starwood Hotels & Resorts Worldwide, Inc. (NYSE:HOT) will be presenting during the Goldman Sachs Lodging, Gaming, Restaurant and Leisure Conference in New York City on Monday, June 4th at 2:15 p.m. EDT. Vasant Prabhu, Vice Chairman and Chief Financial Officer, will be speaking at the conference.

• [By gurujx]

  Starwood Hotels & Resorts Worldwide Inc (HOT): Vice Chairman & CFO Vasant Prabhu Sold 104,573 Shares

  Vice Chairman & CFO Vasant Prabhu sold 104,573 shares of HOT stock on Oct. 25 at the average price of $72.87. Vasant Prabhu owns at least 156,033 shares after this. The price of the stock has increased by 2.42% since.

Top 10 Services Stocks To Own For 2014: Penske Automotive Group Inc.(PAG)

Penske Automotive Group, Inc. operates as an automotive retailer. It sells new and used vehicles of approximately 40 vehicle brands; offers vehicle maintenance and repair services; and engages in the sale and placement of third-party finance and insurance products, third-party extended service contracts, and replacement and aftermarket automotive products. As of December 31, 2011, the company operated 320 retail automotive franchises, of which 166 franchises were located in the United States and 154 franchises are located outside of the United States primarily in the United Kingdom. It also has operations in Puerto Rico and Germany. Penske Automotive Group, Inc. was founded in 1990 and is headquartered in Bloomfield Hills, Michigan.

Advisors' Opinion:

• [By Richard Moroney]

  Penske Automotive (PAG) announced a 6.3% increase in its quarterly dividend on October 23, saying the move reflected its confidence in the ��trength of the auto retail marketplace.��

• [By Seth Jayson]

  Penske Automotive Group (NYSE: PAG  ) reported earnings on April 29. Here are the numbers you need to know.

  The 10-second takeaway
  For the quarter ended March 31 (Q1), Penske Automotive Group missed estimates on revenues and beat slightly on earnings per share.

Top 10 Services Stocks To Own For 2014: Gen-Probe Incorporated(GPRO)

Gen-Probe Incorporated engages in the development, manufacture, and marketing of molecular diagnostic products and services that are used primarily to diagnose human diseases and screen donated human blood. Its women?s health product line includes APTIMA Combo 2 assay, APTIMA CT, APTIMA GC assays, and PACE family of assays to detect chlamydia and gonorrhea; APTIMA Trichomonas ASRs to detect trichomonas; APTIMA HPV assay to detect 14 sub-types of high-risk HPV associated with cervical cancer; and AccuProbe Group B Streptococcus (GBS) assay to detect GBS from culture. The company?s infectious diseases product line comprises ProFlu+ to detect influenza A, B, and Respiratory syncytial virus; ProFAST+ to detect and differentiate seasonal H1, seasonal H3, and H1N1pdm09; ProGastro Cd to detect toxigenic strains of clostridium difficile; AMPLIFIED MTD to detect mycobacterium tuberculosis; GAS Direct to detect gas directly from a throat swab; APTIMA HIV-1 and APTIMA HCV assays to detect RNA from HIV-1 and hepatitis C virus; and ASRs for quantitative HCV testing. Its blood screening products include Procleix HIV-1/HCV, Procleix Ultrio, Procleix Ultrio Plus, and Procleix WNV assays to detect HIV-1, HCV, HBV, and west nile virus in donated blood, plasma, organs, and tissues. The company?s transplant diagnostics products comprise LIFECODES HLA DNA typing kits; LIFECODES HLA antibody kits; LIFECODES PF4 assay to detect PF4 heparin-dependent antibodies; and LIFECODES PAK products for platelet antibody screening and detection. It also provides instrumentation and software for performing NAT assays; and genetic testing products, such as PROGENSA PCA3 and PCA3 ASRs to detect the PCA3 genes. The company serves reference laboratories, public health institutions, and hospitals through its direct sales force in United States, Canada, and Europe, as well as through distributors internationally. Gen-Probe Incorporated was founded in 1983 and is headquartered in S an Diego, California.

Top 10 Services Stocks To Own For 2014: IAC/InterActiveCorp (IACI)

IAC/InterActiveCorp engages in the Internet business in the United States and internationally. The company�s Search segment develops, markets, and distributes various downloadable toolbars; provides search, reference, and content services through its destination search and other Websites, including Ask.com and Dictionary.com; and aggregates and integrates local advertising and content for distribution to publishers on Web and mobile platforms, as well as markets and distributes mobile applications through which it provides search and additional services. Its Match segment offers subscription-based and advertiser-supported online personals services through its Websites comprising Match.com, Chemistry.com, OurTime.com, BlackPeopleMeet.com, and OkCupid.com, as well as through mobile applications and Meetic-branded Websites. The company�s ServiceMagic segment offers Market Match service that matches consumers with service professionals; Exact Match service, which enables con sumers to review service professional profiles and select the service professional that meets their specific needs; and 1800Contractor.com, an online directory of service professionals. This segment also offers Website design and hosting services. Its Media and Other segment operates CollegeHumor.com, an online entertainment Website that targets young males; Vimeo, a Website on which users can upload, share, and view video; and Pronto.com, a comparison search engine. This segment also engages in the creation of video content for various distribution platforms; and operates as an Internet retailer of footwear and related apparel and accessories, as well as focuses on multimedia business. The company was formerly known as InterActiveCorp and changed its name to IAC/InterActiveCorp in July 2004. IAC/InterActiveCorp was founded in 1986 and is headquartered in New York, New York.

Advisors' Opinion:

• [By Jayson Derrick]

  InterActiveCorp (NASDAQ: IACI) announced that its CEO is stepping down from his current position to become chairman of a new operating unit. Investors cheered the management shakeup which is potentially hinting at a spinoff. Shares hit new 52 week highs of $70.44 before closing at $68.49, up 13.98 percent.

• [By Jake L'Ecuyer]

  Equities Trading UP
  IAC/InterActiveCorp (NASDAQ: IACI) shot up 15.54 percent to $69.43 after the company reported that that it is reorganizing and that Greg Blatt, its CEO, will become the Chairman of the newly created Match Group.

Top 10 Services Stocks To Own For 2014: Cracker Barrel Old Country Store Inc.(CBRL)

Cracker Barrel Old Country Store, Inc., through its subsidiaries, engages in the development and operation of the Cracker Barrel Old Country Store restaurant and retail concept in the United States. Its restaurants provide breakfast, lunch, and dinner. The company?s gift shops offer various decorative and functional items, such as rocking chairs, holiday and seasonal gifts, apparel, toys, music CD?s, cookware, old-fashioned-looking ceramics, figurines, a book-on-audio sale-and-exchange program, and various other gift items, as well as candies, preserves, pies, cornbread mixes, coffee, syrups, pancake mixes, and other food items. As of November 22, 2011, it operated 608 company-owned locations in 42 states. The company was formerly known as CBRL Group, Inc. and changed its name to Cracker Barrel Old Country Store, Inc. in December 2008. Cracker Barrel Old Country Store, Inc. was founded in 1969 and is headquartered in Lebanon, Tennessee.

Advisors' Opinion:

• [By Rick Munarriz]

  Finally, we have Cracker Barrel (NASDAQ: CBRL  ) serving up a heaping hike. The chain of rustic restaurants serving up Southern vittles in eateries with adjacent gift shops may be a throwback, but it's also throwing back more money at its stakeholders. The restaurateur followed blowout quarterly results with a healthy 50% increase to its quarterly distributions. Investors will now be receiving $0.75 a share every three months.

Top 10 Services Stocks To Own For 2014: China Southern Airlines Company Limited(ZNH)

China Southern Airlines Company Limited provides commercial airline services in the People's Republic of China, Hong Kong, Macau, Taiwan, and internationally. It principally engages in the provision of passenger, air cargo, and mail airline services. The company also offers logistics services; air catering services; property management services; aircraft and engine repair and maintenance services; pilot training services; flight simulation services; and airport ground services. As of December 31, 2010, it had a fleet of 422 aircraft, as well as a network reaching 898 destinations connecting 169 countries and regions, and cities worldwide. The company was founded in 1995 and is headquartered in Guangzhou, the People?s Republic of China. China Southern Airlines Company Limited operates as a subsidiary of China Southern Air Holding Company.

Advisors' Opinion:

• [By Belinda Cao]

  The Bloomberg China-US Equity Index (CH55BN) of the most-traded Chinese companies in the U.S. slumped 3.4 percent last week to a seven-month low of 89.04. The gauge traded at 13.5 times estimated earnings, 3.6 percent below the S&P�� valuation, data compiled by Bloomberg show. China Southern Airlines Co. (ZNH) and China Eastern Airlines Corp. (CEA) lost more than 6 percent April 5, while Home Inns & Hotels Management Inc. (HMIN) tumbled 16 percent in the week.

• [By WWW.MARKETWATCH.COM]

  LOS ANGELES (MarketWatch) -- Hong Kong stocks started modestly lower Thursday, tracking broad weakness in Asia, with mainland Chinese banks mixed after the release of November lending data. The Hang Seng Index (HK:HSI) lost 0.2% to 23,288.02, while the Hang Seng China Enterprises Index fell 0.4%. However, the Shanghai Composite (CN:SHCOMP) added 0.1% to 2,205.39 in choppy trade that saw it swing between positive and negative territory. Mainland Chinese banks saw mixed reaction after data showed new yuan-denominated loans rose to 624.6 billion yuan ($102 billion) in November, more than 100 billion yuan above the year-earlier figure and beating market forecasts of between 560 billion yuan and 580 billion yuan, according to the XInhua news agency. Among the top banks, Bank of China Ltd. (HK:3988) (BACHY) was up 0.3%, Bank of Communications Co. (HK:3328) (BKFCF) rose 0.2%, Agricultural Bank of China Ltd. (HK:1288) (ACGBF) traded flat, and Industrial & Commercial Bank of China Ltd. (HK:1398) (IDCBF) fell 0.6%. Shares of Aluminum Corp. of China Ltd. (HK:2600) (ACH) lost 0.7% after saying it could see a drop of up to 37% in output from a key Peruvian copper mine. Angang Steel Co. (HK:347) (ANGGF)

Top 10 Services Stocks To Own For 2014: Greengro Technologies Inc (GRNH)

GreenGro Technologies Inc., formerly Authoriszor Inc., provides management services for the planning, construction, staffing and operation of medical marijuana dispensaries, and nurseries on behalf of non-profit patient co-operatives. Through long term contracts, the Company operates non-profit centers, returning all unused patient contributions, on a pro-rata basis to each co-op member in the form of additional product. In February 2010, Authoriszor Inc. completed the acquisition of GreenGro Technologies, Inc., and CannovaHealth, a clinic management company. In September 2011, the Company acquired Vertical Hydrogarden, Inc.

Medical marijuana (medical cannabis) is an alternative method to other forms of medication used to manage or alleviate pain without the undo side-effects caused by the prescription medication being used to treat an illness. The Company stands ready to assist in patient care co-operatives throughout the United States.

Advisors' Opinion:

• [By James E. Brumley]

  If it seems like the buzz surrounding marijuana stocks like Medical Marijuana Inc. (OTCMKTS:MJNA), Hemp, Inc. (OTCMKTS:HEMP), and GreenGro Technologies, Inc. (OTCMKTS:GRNH) has been a little louder than usual the last few days, you're not crazy - it has been louder, and particularly bullish. GRNH shares advanced 37% in December. HEMP is up 166% for the past two weeks. MJNA has jumped 47% in just the past couple of days. Well, as it turns out, it's not just mere coincidence that GreenGro Technologies, Hemp, Medical Marijuana, and a bunch of other cannabis-related names have perked up of late. And, odds are pretty good they'll all continue to do well (even of the pace slows a bit) in 2014.

• [By Ben Levisohn]

  But, as the Huffington Post points out, most of the companies that stand to benefit are very small–they make micro caps look big–trade over the counter–good bye liquidity. That includes transaction-processing company MediSwipe (MWIPD), GreenGro Technologies (GRNH) Medbox (MDBX), which makes dispenser for high-risk drugs, and GW Pharmaceuticals (GWPRF).

Top 10 Services Stocks To Own For 2014: Scientific Learning Corporation(SCIL)

Scientific Learning Corporation develops, distributes, and licenses technology worldwide that accelerates learning by enhancing the processing efficiency of the brain. It offers the Fast ForWord language products for elementary learners; the literacy products for adolescent learners; the Fast ForWord reading products, which focus on phonemic awareness, phonics and decoding, spelling, vocabulary, fluency, and comprehension; and Reading Assistant, a software that combines advanced speech verification technology with scientifically-based interventions to help elementary and secondary students strengthen their reading fluency, vocabulary, and comprehension. It also provides Progress Tracker, an Internet-based data analysis and reporting tool, which analyzes student learning results to provide diagnostic and prescriptive intervention information and allows educators to track and report their students? learning progress; Reading Progress Indicator that assesses student?s readi ng skills; BrainSpark products that target learners of age 5 to 13 who are at or above grade level and want to enhance their overall learning potential; and BrainPro targeted at learners who are below grade level. In addition, the company offers KinderSpark series that collects iPad games for children aged 3 to 6 for building readiness skills and excel in learning. Scientific Learning Corporation offers its products to educational institutions, speech and language clinics, learning centers, and parents. The company was founded in 1995 and is headquartered in Oakland, California.

Top 10 Services Stocks To Own For 2014: Seneca Foods Corp (SENEB)

Seneca Foods Corporation is a producer and distributor of processed fruits and vegetables. The Company's product offerings include canned, frozen and bottled produce and snack chips. The Company has two segments: processing and sale of fruits and vegetables and processing and sale of chip products. These two segments constitute the food operation. As of March 31, 2012, the food operation constituted 98% of total sales, of which approximately 69% was canned vegetable processing, 18% was canned fruit processing, 12% was frozen fruit and vegetable processing and 1% was fruit chip processing. The Company packs Green Giant, Le Sueur and other brands of canned vegetables, as well as select Green Giant frozen vegetables for General Mills Operations, LLC (GMOL). In January 2013, the Company acquired Independent Foods, LLC.

As of March 31, 2012, the Company's facilities consisted of 21 processing plants located throughout the United States, two can manufacturing plants, two seed processing operations, a small farming operation and a limited logistical support network. The Company also maintains warehouses, which are located adjacent to its processing plants. The products are sold nationwide by grocery outlets, including supermarkets, merchandisers, limited assortment stores, club stores and dollar stores.

Products are sold to food service distributors, industrial markets, other food processors, export customers in 80 countries and federal, state and local governments for school and other feeding programs. Food processing operations are primarily supported by plant locations in New York, California, Wisconsin, Washington, Idaho, Illinois, and Minnesota. The Company�� products are sold under private label, as well as national and regional brands that the Company owns or licenses, including Seneca, Libby's, Aunt Nellie's Farm Kitchen, Stokely's, Read, Taste of the West, Cimarron, and Tendersweet.

Top 10 Services Stocks To Own For 2014: Team Inc.(TISI)

Team, Inc. provides specialty maintenance and construction services for maintaining high temperature and high pressure piping systems and vessels that are utilized in heavy industries. It offers inspection and assessment services, such as inspection and evaluation of piping, piping components, and equipment; field heat treating services, including electric resistance and gas-fired combustion; leak repair services comprising on-stream repairs of leaks in pipes, valves, flanges, and other parts of piping systems and related equipment; and fugitive volatile organic chemical emission leak detection services consisting of identification, monitoring, data management, and reporting. The company also provides hot tapping services, such as hot tapping, Line-stop, and Freeze-stop services; field machining services, including the use of portable machining equipment to repair or modify machinery, equipment, vessels, and piping systems, as well as flange facing, pipe cutting, line bori ng, journal turning, drilling, and milling services; and technical bolting services comprising the use of hydraulic or pneumatic equipment with bolt tightening techniques for leak-free connections, plant maintenance, and expansion projects, as well as bolt disassembly and hot bolting services. In addition, it offers field valve repair services consisting of on-site repairs to manual and control valves, and pressure and safety relief valves, as well as specialty valve actuator diagnostics and repair. The company markets its services to companies in a various heavy industries, which include the petrochemical, refining, power, pipeline, steel, pulp and paper, and shipbuilding industries, as well as to municipalities, original equipment manufacturers, distributors, and engineering and construction firms. It operates in the United States, Canada, Europe, and internationally. The company was founded in 1973 and is headquartered in Alvin, Texas.

Advisors' Opinion:

• [By Seth Jayson]

  When judging a company's prospects, how quickly it turns cash outflows into cash inflows can be just as important as how much profit it's booking in the accounting fantasy world we call "earnings." This is one of the first metrics I check when I'm hunting for the market's best stocks. Today, we'll see how it applies to Team (NYSE: TISI  ) .

• [By Monica Gerson]

  Team (NYSE: TISI) lowered its annual earnings outlook. Team shares tumbled 10.63% to $35.75 in the after-hours trading session.

  Synergetics USA (NASDAQ: SURG) reported its FQ4 earnings of $0.06 per share on revenue of $17.9 million. However, analysts were projecting earnings of $0.05 per share on revenue of $17 million. Synergetics USA shares dipped 11.82% to $4.40 in the after-hours trading session.

• [By Seth Jayson]

  Calling all cash flows
  When you are trying to buy the market's best stocks, it's worth checking up on your companies' free cash flow once a quarter or so, to see whether it bears any relationship to the net income in the headlines. That's what we do with this series. Today, we're checking in on Team (NYSE: TISI  ) , whose recent revenue and earnings are plotted below.

• [By Monica Gerson]

  Team (NYSE: TISI) is expected to post its Q1 earnings at $0.36 per share on revenue of $176.70 million.

  Resources Connection (NASDAQ: RECN) is estimated to post its Q1 earnings at $0.12 per share on revenue of $133.43 million.

Top 10 Services Stocks To Own For 2014: Sport Chalet Inc.(SPCHB)

Sport Chalet, Inc. operates specialty sporting goods stores in California, Nevada, Arizona, and Utah. Its stores offer traditional sporting goods merchandise, including footwear, apparel, and other general athletic products; and core specialty merchandise, such as snowboarding, skateboarding, mountaineering, and scuba. The company?s stores also offer various services for the sports enthusiast, including backpacking, canyoneering and kayaking instruction, custom golf club fitting, snowboard and ski rental and repair, scuba training and certification, scuba boat charters, team sales, racquet stringing, and bicycle tune-up and repair. As of July 3, 2011, it operated 54 store locations; and an online store at sportchalet.com. The company was founded in 1959 and is based in La Ca�da, California.

Microsoft, Starbucks report earnings after bell

Bloomberg

SAN FRANCISCO (MarketWatch) — Microsoft Corp. and Starbucks Corp. shares will be in focus in the extended session late Thursday as the respective companies report quarterly earnings.

Microsoft is expected to report fiscal second-quarter earnings of 69 cents a share on revenue of $23.66 billion, according to analysts surveyed by FactSet. That's compared to earnings of 76 cents a share on revenue of $21.47 billion in the year-ago period.

Earnings Wall

Discuss key earnings announcements before and after results come in. Learn more

Key reports we're tracking right now:
ABC | MCD | LUV | UNP | UAL | MSFT | SBUX | ETFC

/conga/story/misc/earnings_wall_threewide.html 294332

Overshadowing the earnings report, investors will be looking for any sign that Microsoft has made progress in naming a successor to Chief Executive Steve Ballmer, who in August said he would retire within a year.

Declining PC sales, challenges to Microsoft's Office suite of software, and weak device sales are seen as likely headwinds in the company's earnings report. Shares of Microsoft were down 1% in recent activity.

Starbucks (SBUX)  is forecast to report fiscal first-quarter earnings of 69 cents a share on revenue of $4.3 billion. That's compared to 57 cents a share on revenue of $3.8 billion in the year-ago period.

Sales growth at Starbucks's brick-and-mortar stores will be a major focus of the earnings report given shifts to online shopping. Shares of Starbucks were down 0.8% in recent activity.

Also on deck for earnings, Discover Financial Services (DFS)  is seen posting fourth-quarter earnings of $1.17 a share on revenue of $2.1 billion.

E-Trade Financial Corp. (ETFC)  is likely to report fourth-quarter earnings of 19 cents a share on revenue of $425.8 million.

Intuitive Surgical Inc. (ISRG)  is expected to report adjusted fourth-quarter earnings of $3.82 a share on revenue of $558 million.

Juniper Networks Inc. (JNPR)  is forecast to post adjusted fourth-quarter earnings of 37 cents on revenue of $1.22 billion.

More from MarketWatch:

Apple's Mac team to reunite for the big 3-0

Why IBM selling server unit to Lenovo is bad news for H-P

Netflix soars; Herbalife skids on calls for probe

Hot Casino Stocks To Watch For 2014

Las Vegas Sands (NYSE:LVS) will report its 1Q 2013 earnings on May 1. Despite a slowdown in the Chinese economy last year, the company continued to do well in Macau, the world's biggest casino market. Given the success of Las Vegas Sands' integrated resorts in Macau and increased gaming revenues in China, we expect good results in the first quarter. However, growth in the company's Singapore operations is likely to be slow due to relatively strict government regulations and a decline in the number of foreign visitors

Riding High On Macau

For the first three months of 2013, Macau's gaming revenues surged 15% to $10 billion compared to the same period last year. In March alone, revenues were up 25% amounting to $4 billion (source). While Macau's strong growth will help the casino operators in the region, Las Vegas Sands in particular will be a key beneficiary as it has established a critical mass in the market with its diverse properties and resorts. This gives the company a competitive edge over the other players such as Wynn Resorts (NASDAQ:WYNN) and MGM Resorts International (NYSE:MGM).

Hot Casino Stocks To Watch For 2014: Caesars Entertainment Corp (CZR)

Caesars Entertainment Corporation, incorporated on November 2, 1989, is a diversified casino-entertainment provider. The Company�� business is primarily conducted through a wholly owned subsidiary, Caesars Entertainment Operating Company, Inc. (CEOC), although certain material properties are not owned by CEOC. As of December 31, 2012, it owned, operated, or managed, through various subsidiaries, 52 casinos in 13 United States states and seven countries. The majority of these casinos operate in the United States, primarily under the Caesars, Harrah��, and Horseshoe brand names, and in England. In November 2012, the Company sold its Harrah's St. Louis casino to Penn National Gaming, Inc. In December 2012, the Company purchased all of the net assets of Buffalo Studios, LLC, a social and mobile games developer and owner of Bingo Blitz.

The Company�� casino entertainment facilities include 33 land-based casinos, 11 riverboat or dockside casinos, three managed casinos on Indian lands in the United States, one managed casino in Cleveland, Ohio, one managed casino in Canada, one casino combined with a greyhound racetrack, one casino combined with a thoroughbred racetrack, and one casino combined with a harness racetrack. The Company�� land-based casinos include nine in England, two in Egypt, one in Scotland, one in South Africa and one in Uruguay. As of December 31, 2012, its facilities had an aggregate of approximately three million square feet of gaming space and approximately 43,000 hotel rooms. In southern Nevada, Caesars Palace, Harrah�� Las Vegas, Rio All-Suite Hotel & Casino, Bally�� Las Vegas, Flamingo Las Vegas, Paris Las Vegas, Planet Hollywood Resort and Casino, The Quad Resort & Casino (formerly the Imperial Palace Hotel and Casino), Bill�� Gamblin��Hall & Saloon, and Hot Spot Oasis are located in Las Vegas and draw customers from throughout the United States. Harrah�� Laughlin is located near both the Arizona and California borders and draws customers primarily from! the southern California and Phoenix metropolitan areas and, to a lesser extent, from throughout the United States through charter aircraft. In northern Nevada, Harrah�� Lake Tahoe and Harveys Resort & Casino are located near Lake Tahoe and Harrah�� Reno is located in downtown Reno. These facilities draw customers primarily from northern California, the Pacific Northwest, and Canada.

The Company�� Atlantic City casinos, Harrah�� Resort Atlantic City, Showboat Atlantic City, Caesars Atlantic City, and Bally�� Atlantic City, draw customers primarily from the Philadelphia metropolitan area, New York, and New Jersey. Harrah�� Philadelphia (formerly Harrah's Chester) is a combination harness racetrack and casino located approximately six miles south of Philadelphia International Airport and draws customers primarily from the Philadelphia metropolitan area and Delaware. The Company�� Chicagoland dockside casinos, Harrah�� Joliet in Joliet, Illinois, and Horseshoe Hammond in Hammond, Indiana, draw customers primarily from the greater Chicago metropolitan area. In southern Indiana, it owns Horseshoe Southern Indiana, a dockside casino complex located in Elizabeth, Indiana, which draws customers primarily from northern Kentucky, including the Louisville metropolitan area, and southern Indiana, including Indianapolis. In Louisiana, the Company owns Harrah�� New Orleans, a land-based casino located in downtown New Orleans, which attracts customers primarily from the New Orleans metropolitan area. In northwest Louisiana, Horseshoe Bossier City, a dockside casino, and Harrah�� Louisiana Downs, a thoroughbred racetrack with slot machines, both located in Bossier City, cater to customers in northwestern Louisiana.

The Company owns the Grand Casino Biloxi, located in Biloxi, Mississippi, which caters to customers in southern Mississippi, southern Alabama, and northern Florida. Harrah�� North Kansas City dockside casino draws customers from the Kansas City metropolitan ar! ea. Harra! h�� Metropolis is a dockside casino located in Metropolis, Illinois, on the Ohio River, drawing customers from southern Illinois, western Kentucky, and central Tennessee. Horseshoe Tunica, Harrah�� Tunica, and Tunica Roadhouse Hotel & Casino, dockside casino complexes located in Tunica, Mississippi, are approximately 30 miles from Memphis, Tennessee and draw customers primarily from the Memphis area and, to a lesser extent, from throughout the United States through charter aircraft. Horseshoe Casino and Bluffs Run Greyhound Park, a land-based casino and pari-mutuel facility, and Harrah�� Council Bluffs Casino & Hotel, a dockside casino facility, are located in Council Bluffs, Iowa, across the Missouri River from Omaha, Nebraska. At Horseshoe Casino and Bluffs Run Greyhound Park, the Company owns the assets other than gaming equipment, and leases these assets to the Iowa West Racing Association (IWRA), a nonprofit corporation, and it manages the facility for the IWRA under a management agreement expiring in October 2024. The license to operate Harrah�� Council Bluffs Casino & Hotel is held jointly with IWRA, the qualified sponsoring organization.

The Conrad Resort & Casino located in Punta Del Este, Uruguay (the Conrad), draws customers primarily from Argentina and Uruguay. In November 2012, the Company announced that it had entered into a definitive agreement with Enjoy S.A. (Enjoy) to form a strategic relationship in Latin America. Under the terms of the agreement, Enjoy will acquire 45% of Baluma S.A., its subsidiary, which owns and operates the Conrad, and the Company will become a 10% shareholder in Enjoy upon consummation of the agreement. Upon the closing of the transaction, which is subject to certain conditions, including the receipt of all regulatory and governmental approvals, Enjoy will assume primary responsibility for management of the Conrad. Enjoy will have the option to acquire the remaining stake in Baluma S.A. between years three and five following closing. The cl! osing of ! the transaction remains subject to a number of conditions, including regulatory and governmental approvals in both Uruguay and Chile.

The Company owns four casinos in London: the Sportsman, the Golden Nugget, The Playboy Club London, and The Casino at the Empire. Its casinos in London draw customers primarily from the London metropolitan area, as well as international visitors. The Company also owns Alea Nottingham, Alea Glasgow, Alea Leeds, Manchester 235, Rendezvous Brighton, and Rendezvous Southend-on-Sea in the provinces of the United Kingdom, which primarily draw customers from their local areas. Pursuant to a concession agreement, it also operates two casinos in Cairo, Egypt, The London Club Cairo (which is located at the Ramses Hilton) and Caesars Cairo (which is located at the Four Seasons Cairo), which draw customers primarily from other countries in the Middle East. Emerald Safari, located in the province of Gauteng in South Africa, draws customers primarily from South Africa. It owsn and operates Bluegrass Downs, a harness racetrack located in Paducah, Kentucky.

The Company owns three casinos for Indian tribes: Harrah�� Phoenix Ak-Chin, located near Phoenix, Arizona, Harrah�� Cherokee Casino and Hotel, and Harrah�� Rincon Casino and Resort, located near San Diego, California. The Company manages Caesars Windsor, located in Windsor, Ontario, which draws customers primarily from the Detroit metropolitan area, Horseshoe Cleveland casino in Ohio, which it manages for Rock Ohio Caesars LLC (ROC), a venture with Rock Ohio Ventures, LLC (Rock Gaming), in which it has a 20% equity interest, and the Horseshoe Cincinnati casino in Ohio for ROC for a fee under a management agreement that will expire in March 2033. It also has a minority interest in Sterling Suffolk Racecourse, LLC (Suffolk Downs), which owns a horse-racing track in Boston, Massachusetts, and the right to manage a future gaming facility. The Company also owns ans operates a golf course on 175 acres of prime real! estate t! hrough a land concession on the Cotai strip in Macau.

Advisors' Opinion:

• [By Travis Hoium]

  What: Shares of Caesars Entertainment (NASDAQ: CZR  ) jumped 15% today after saying it was continuing a plan to offer shares in a spinoff.

• [By AlphaStreetResearch]

  Caesars Entertainment Corporation (CZR) is a highly overvalued gaming, hotel, and entertainment company with deteriorating fundamentals on all levels in a highly competitive environment. The company's stock has seen a massive run to the upside on the coattails of other casino and entertainment companies in the space. A considerable catalyst for the push higher in these stocks is the good news coming out of Macau, but this is an area where Caesars has absolutely no exposure and will be locked out of for the foreseeable future after failing to take appropriate licensing measures. Below is our introduction into the business model, its weaknesses, and the new selling or shorting opportunity that exists for CZR after the recent appreciation in share price. Investors will soon realize that there is little upside value in this company and that there are much better opportunities in this space. The company is now amidst a major struggle from a debt standpoint with major deadlines approaching over the next year and a half. The company is in no position to thrive going forward unless major steps are taken to overhaul the company's capital structure. Caesars Entertainment has a market cap of $3.19 Billion after the stock has moved up over 225% year to date and reports its next quarter on October 31, 2013. With this in mind, we value CZR at $21.00 by year-end of 2013 and $14.00 by August 1, 2014, a decrease of 40% from current levels. We will later highlight:

Hot Casino Stocks To Watch For 2014: NanoTech Entertainment Inc (NTEK)

NanoTech Entertainment, Inc. (NanoTech), formerly Aldar Group, Inc., is a provider of gaming technology for the coin-op arcade, casino gaming and consumer gaming markets. The Company operates as a manufacturer, developing technology and games, and then licensing them to third parties for manufacturing and distribution. As of June 30, 2009, the Company�� products included MultiPin, Xtreme Rally Racing, NanoNET Online System, Pinball Wizard, Mot-Ion Adapter, Opti-Gun Adapter and Retr-IO Adapter. In April 2009, the Company acquired NanoTech Entertainment, Inc. In July 2013, NanoTech Entertainment Inc completed the acquisition of Clear Memories, Inc. of Napa California. Effective August 9, 2013, NanoTech Entertainment Inc acquired Worldwide Global Entertainment, a developer of prepackaged software.

The Company�� physics engine and motion sensors allow MultiPin to accurately recreate the experience of a mechanical pinball machine, while providing players with a variety of classic and modern pinball games to choose from. Xtreme Rally Racing is a driving machine that features three modes of game play: Xtreme Off-Road-Race Head to Head against other players and the computer to checkpoints while driving anywhere on the map with no preset course; Timed Rally Stages-Classic Rally Racing on real world courses. Players will be able to race in five different countries on real world rally courses, and Xtreme Stadium Racing-Custom Stadiums designed for Xtreme racing, including a figure eight multi-lap course with huge jumps. NanoNET Online System is remote operator control of machines, including diagnostics, accounting reports, and automatic software updates and enhancements downloaded over the net.

The Company has created the input device designed to give the pinball players a way to experience real pinball controls on their personal computer. Based on the technology developed for the MultiPin product it has built a controller that lets people play pinball using traditional controls and! the ability to shake and nudge the table. The Mot-Ion adapter is a universal serial bus (USB) adapter that allows do it yourself Pinball enthusiasts to build their own cabinet using real pinball controls providing analog inputs for nudging and bumping. The OptiGun adapter is a USB adapter that allows players to connect Arcade Light Guns to any USB based system. The Retr-IO adapters provide a standard JAMMA interface for USB based systems.

Advisors' Opinion:

• [By Bryan Murphy]

  Call them hunches (because that's all they are), but now would be a great time to get out of a NanoTech Entertainment, Inc. (OTCMKTS:NTEK) position and/or get into an ACADIA Pharmaceuticals Inc. (NASDAQ:ACAD). NTEK looks like its reached its maximum potential - for the time being - while ACAD looks like it's ready to start rolling higher again.

Top 10 Medical Companies For 2014: MGM Resorts International(MGM)

MGM Resorts International, through its subsidiaries, primarily owns and operates casino resorts in the United States. The company?s resorts offer gaming, hotel, dining, entertainment, retail, and other resort amenities. It also owns and operates golf courses and a golf club. As of December 31, 2010, the company owned and operated 15 properties located in Nevada, Mississippi, and Michigan; and has 50% investments in 4 other casino resorts in Nevada, Illinois, and Macau. In addition, MGM Resorts International has an agreement with the Mashantucket Pequot Tribal Nation, which owns and operates a casino resort in Connecticut, to carry the ?MGM Grand? brand name. The company was formerly known as MGM MIRAGE and changed its name to MGM Resorts International in June 2010. MGM Resorts International was founded in 1986 and is based in Las Vegas, Nevada.

Advisors' Opinion:

• [By Travis Hoium]

  But there's still evidence that it exists, even if authorities don't push hard for information. MGM Resorts (NYSE: MGM  ) was forced to divest its New Jersey properties because of the company's relationship with Pansy Ho, whose father had ties to triads in Macau. Las Vegas Sands is under investigation by the U.S. attorney's office for possibly violating money laundering laws in Macau last year.

• [By Travis Hoium]

  What we can take from this is that, most likely, Las Vegas Sands and Melco Crown (NASDAQ: MPEL  ) will see a large increase in revenue when they report earnings. We can also assume that MGM Resorts (NYSE: MGM  ) will show similar trends in Macau because its location is next to Wynn's. There's far more growth to be had than what Wynn is showing and Las Vegas Sands and Melco Crown likely took significant share during the first quarter.

• [By M. Joy, Hayes]

  Industry trends
  Other businesses in the industry also have copious related-party transactions. In particular, founder-led businesses Wynn Resorts (NASDAQ: WYNN  ) and Boyd Gaming (NYSE: BYD  ) �reported a large number of such transactions in their 2013 proxies, including employment of relatives, employee use of company services, and employee use of company-owned property. MGM Resorts International (NYSE: MGM  ) , on the other hand, didn't have to report any related-party transactions in its 2013 proxy.

Hot Casino Stocks To Watch For 2014: Wynn Resorts Limited(WYNN)

Wynn Resorts, Limited, together with its subsidiaries, engages in the development, ownership, and operation of destination casino resorts. The company owns and operates Wynn Las Vegas casino resort in Las Vegas, which includes approximately 22 food and beverage outlets comprising 5 dining restaurants; 2 nightclubs; 1 spa and salon; 1 Ferrari and Maserati automobile dealership; wedding chapels; an 18-hole golf course; meeting space; and foot retail promenade featuring boutiques. Wynn Las Vegas casino resort also features approximately 147 table games, 1 baccarat salon, private VIP gaming rooms, 1 poker room, 1,842 slot machines, and 1 race and sports book. It also owns and operates an Encore at Wynn Las Vegas resort, a destination casino resort located adjacent to Wynn Las Vegas that features a 2,034 all-suite hotel, as well as a casino with 95 table games, 1 sky casino, 1 baccarat salon, private VIP gaming rooms, and 778 slot machines. In addition, the company operates Wyn n Macau casino resort located in the Macau Special Administrative Region of the People?s Republic of China. Wynn Macau casino resort features approximately 595 hotel rooms and suites, 410 table games, 935 slot machines, 1 poker room, 1 sky casino, 6 restaurants, 1 spa and salon, lounges, meeting facilities, and retail space featuring boutiques. Further, it operates Encore at Wynn Macau resort located adjacent to Wynn Macau. Encore at Wynn Macau resort features approximately 410 luxury suites and 4 villas, as well as casino gaming space, including a sky casino consisting of 60 table games and 80 slot machines, 2 restaurants, 1 luxury spa, and retail space. The company was founded in 2002 and is based in Las Vegas, Nevada.

Advisors' Opinion:

• [By Chris Hill and Bill Barker]

  Shares of the casino and resort company have had a very good run lately, rising 12% in the last three months alone. While most people automatically picture the iconic Las Vegas strip when they think of casinos, Wynn Resorts (NASDAQ: WYNN  ) actually makes the majority of its profits from its operations in Macau. With China's economy slowing down, how much will Wynn's bottom line be hurt? Motley Fool Asset Management analyst Bill Barker shares why investors focused on the long term have nothing to fear.

Hot Casino Stocks To Watch For 2014: Pinnacle Entertainment Inc.(PNK)

Pinnacle Entertainment, Inc. owns, develops, and operates casinos, and related hospitality and entertainment facilities in the United States. It operates casinos, such as L'Auberge du Lac in Lake Charles, Louisiana; River City Casino and Lumiere Place in St. Louis, Missouri; Boomtown New Orleans in New Orleans, Louisiana; Belterra Casino Resort in Vevay, Indiana; Boomtown Bossier City in Bossier City, Louisiana; and Boomtown Reno in Reno, Nevada. The company also operates River Downs racetrack in southeast Cincinnati, Ohio. As of May 26, 2011, it operated seven casinos and one racetrack. The company was formerly known as Hollywood Park, Inc. and changed its name to Pinnacle Entertainment, Inc. in February 2000. Pinnacle Entertainment, Inc. was founded in 1935 and is based in Las Vegas, Nevada.

Advisors' Opinion:

• [By Ben Levisohn]

  Pinnacle Entertainment (PNK) has gained 56% this year; Las Vegas Sands (LVS) has climbed 38%. And Deutsche Bank has nice things to say about both today.

  Bloomberg

  First Pinnacle. Deutsche Bank’s Carlo Santarelli ponders the stock’s big move and comes away still seeing value in its shares. He writes:

  When we upgraded PNK in April, our thesis centered on the FCF strength of the combined entities [Pinnacle completed its acquisition of Ameristar Casinos on Aug. 14], a handful of favorable catalysts, easing regional gaming comps, & an inexpensive relative valuation. Given the shares’ sizeable move since then, we believe it is worth revisiting the investment case. Post the announcement of several asset sales and the closing of the transaction, we are adjusting our estimates, raising our PT to $30 from $24, and maintaining our bullish view at current levels given what we still believe to be an attractive free cash flow valuation, meaningful potential synergy realization beyond the $40 mm of announced benefits, and a free option on a lagging regional recovery.

  Santarelli also revisited Las Vegas Sands and there too, he likes what he sees. He writes:

  With…LVS at [a share price level] that have been challenging to break from over the last year plus, we believe this time is different and hence we see continued upward momentum…In the case of LVS, we see; 1) meaningful mass market strength continuing through year end, setting the stage for upward company and market estimate revisions for 2014, 2) continued cash flow appreciation and capital returns serving as downside protection and positive catalysts, and 3) continued shared gains, largely driven by table optimization and mass market strength, driving both estimates and sentiment.

  He also likes Wynn Resorts (WYNN), despite its 34% gain.�Santarelli writes:

  As for WYNN, we believe near-term estimates continue to take a back seat to capital return

• [By Travis Hoium]

  What: Shares of Ameristar Casinos (NASDAQ: ASCA  ) and Pinnacle Entertainment (NYSE: PNK  ) fell as much as 11% today after the government brought into question the merger of the two companies.

• [By Sean Williams]

  Time to make the switch
  If I could name a sector that I'd certainly tread lightly around considering that consumers are tightening their wallets, it would be the casino sector. Casino companies rely on loose wallets and vacations to drive profits. This is why I feel it could be the time to say goodbye to casino and race track operator Pinnacle Entertainment (NYSE: PNK  ) near its 52-week high.

The Opposite Of Spoiled: The Right Way To Teach Kids About Money

What's the best way to teach kids about money? That question has haunted folks for decades — maybe centuries. There are dozens of financial literacy programs in the United States right now, but none of them seems to be effective. Why is that?

I've written before about why I think financial literacy education fails. Here's the short version: Most financial literacy fails because it focuses too much on mechanics — how bonds work, the magic of compound interest — and not enough on behavior. While mechanics are key (they're the foundation, after all), they're not the most important aspect of financial success.

Here's an analogy: My brothers know how to read and write. They're smart guys, and they're both literate. But just because they know how to read and write doesn't mean they practice those skills. One of my brothers used to proudly declare, "I haven't read a book since high school." (Oh, how that hurt my book-loving heart!) Knowing how to read doesn't make you a reader. And knowing how to save doesn't make you a saver.

Financial literacy is not the answer. We've got to do something more if we want to teach our kids about money.

John Hancock
Recently, I've had two great conversations about this topic. The first was with John Hancock, the president of the Portland chapter of Junior Achievement, a non-profit group focused on helping kids learn about money and entrepreneurship. He and I met for coffee last week, and we chatted about his own efforts to improve financial literacy.

Tip: Teach children the importance of creating an emergency fund. You can even go so far as helping them open their own online savings account, or one with a local bank to get started.
Like me, Hancock thinks it's important to focus less on the "how to" and more on the "why" when it comes to money. He wants to change behavior. His goal isn't to just educate young people about money, but (as he puts it), "to change habits of the hands and habits of the heart".

Hancock thinks it's important to put people into active simulations, such as role-playing. To that end, his group puts on an annual event for kids called Biztown, which lets them experience a simulated city environment. The children take on the roles of various business and professional leaders in an interconnected community, and they learn how to manage their own personal finances. I know several kids who've done this program, and they love it. So do their parents. The experience seems to have a positive effect on their attitudes toward money.

The local chapter of Junior Achievement also produces The Money Jar, a weekly podcast about kids and money. (Last autumn, I appeared on an episode of this program to talk about how to build savings.)

I applaud Hancock's efforts, and hope to work with him in the future to improve financial education in our area.

Ron Lieber
Earlier this week, I had a long phone call with Ron Lieber, who writes the "Your Money" column for the New York Times. He's currently on sabbatical to write a book called The Opposite of Spoiled, in which he hopes to teach parents how to raise children with financial maturity. Note: This was the first time Lieber and I have ever connected, though we've been aware of each other for years. After all, I write the "Your Money" column for Entrepreneur magazine, and my first book was called Your Money: The Missing Manual.
Lieber has some great insights about financial education. "Financial literacy works best when it's delivered in the moment on an as-needed basis," he told me.

As an example, he talked about how sixteen- and seventeen-year-old kids make six-figure decisions about education with very little guidance. "The fact that these kids are making major financial decisions in complete ignorance is a crisis," Lieber said. "We need a financial Americorps to go into high schools and help kids address important questions. Why go to college? Why do different schools cost different amounts? How does financial aid work? What about delaying school for a year or two?"

Lieber agrees that financial literacy efforts have largely been ineffective. He says they should focus on "feelings, behavior, and emotion — all of the things we've realized over the past decade that are at the crux of getting money right." We talked about his book, and about raising children to be financially mature.

Note: Lieber is midway through writing The Opposite of Spoiled, and he's looking for more people to interview. If you have a great story about kids and money, he'd like to talk to you. Drop me a line, and I'll connect you.
"How do children become spoiled?" I asked.

"They're not born that way," he said. "We do it to them. Nobody wants to raise a spoiled child, yet it happens all the time."

One issue is what Lieber calls the "first-generation affluent". When you were raised poor (or lower middle-class), there's a real temptation to give your kids the things you never had. You remember what it was like to feel deprived, and you don't want your children to experience that — even if a little deprivation might be good for them, might build character. (After all, it helped make you who you are, right?) "Kids should, at the very least, have to earn things," Lieber says. In writing about spoiled children, Lieber tried to think of what it meant to be the opposite of spoiled. Because the word "spoiled" was originally used to describe food, the opposite is "fresh", which isn't a good choice in this case. "When we talk about spoiled children," Lieber told me, "the opposite qualities are modesty, patience, thrift, generosity, perspective, perseverance, courage, grit, bravery, prudence, and so on."

"That sounds like the boy scout law," I said. Lieber laughed. "Scouting imparts a core set of important values, it's true."

"The thing is," he continued, "you can use money as a central tool to teach kids about every single one of these. Instead of shying away from the topic, what if we put money at the center of family conversations? What if we assumed not that money subverts values but contributes to them? Because it does. This is the path to financial literacy and financial education."

Note: Lieber also loves the idea of opening a money store — some sort of business where folks can come in and get cheap, objective information about how to better manage their finances. He's done more research into the practicalities than I have. Neither one of us is actually ready to move forward with such a business, but we like the idea of it...

The Bottom Line As always happens with these discussion about financial literacy, I don't have any answers — only complaints. Over the past few months, I've chatted with Flexo from Consumerism Commentary. He want to start a financial literacy non-profit, and I want to help him make that a reality. But neither one of us really knows what that organization will look like and how it will accomplish its objectives.

I'm not sure we need to have the answers right now, though. Maybe it's enough to simply be asking the questions. I think that's the first step in finding a way to help children become masters of their financial futures.

Note: This article is from J.D. Roth, who founded Get Rich Slowly in 2006. After a year off, J.D. is once again writing at GRS. His non-financial writing can still be found at More Than Money.