GM expects to recall 33,000 Chevrolet Cruzes

GM is preparing to recall some newer Chevrolet Cruze cars for an airbag issue. NEW YORK (CNNMoney) General Motors is expected to recall about 33,000 Chevrolet Cruze sedans for an airbag-related issue.

The affected vehicles may have been equipped with an incorrect part.

The automaker is preparing for the recall after it told dealerships to stop selling all Cruzes from model years 2013 and 2014 on Tuesday. It lifted that stop-sale order late Wednesday, after identifying all the affected vehicles.

The part in question was manufactured by Japanese company Takata, a supplier tied to airbag problems in millions of cars that other automakers recalled earlier this week. The Cruze problem is different than the one in those recalled vehicles, said GM spokesman Jim Cain.

The Cruze is GM's best-selling car model in the United States. It sold 248,000 last year.

  Barra on GM's bankruptcy protection

The news comes as the automaker is already in damage control mode for delaying the recall of 2.6 million vehicles for an ignition switch defect that's been tied to at least 13 deaths. Some GM employees knew the part was causing trouble more than a decade before the recall was issued in February.

Now, GM (GM) is facing dozens of lawsuits and a number of investigations concerning how it handled that recall.

The company has also issued a number of additional recalls this year for problems unrelated to the faulty ignition switch. It has recalled more than 20 million vehicles worldwide since January.

Fed board member Stein to resign

Jeremy Stein, a member of the Federal Reserve's board of governors, resigned Thursday, saying he plans to return to his economics teaching position at Harvard.

President Obama appointed Stein, 53, to the board in May 2012 to fill an unexpired term that ends Jan. 31, 2018.

His resignation is effective May 28.

"During my time here, the economy has moved steadily back in the direction of full employment, and a number of important steps have been taken to make the financial system stronger and more resilient," Stein said in his resignation letter to Obama. "There is undoubtedly more work to be done on both dimensions."

As one of the Fed's seven governors, Stein is a voting member of the Federal Open Market Committee, the Fed's policymaking panel that decides whether to raise or lower interest rates, among other decisions.

The committee is at a critical juncture since it began to wind down a bond-buying program aimed at holding down long-term interest rates, and must determine when to start raising short-term rates. The Fed has said that's likely to occur in mid-2015.

"Jeremy has made important contributions and served as an intellectual leader during his time at the board," said Fed Chair Janet Yellen. "His understanding of monetary policy and markets as well as his expertise in banking and financial regulation has proven invaluable in his service to the Federal Reserve and the country."

The Fed's board already had two open seats after Elizabeth Duke resigned last summer and former Fed Chairman Ben Bernanke stepped down when his second term ended in January. Yellen replaced him as chairman but her previous vice chair slot is still unfilled.

President Obama has nominated Stanley Fischer, former chief of Israel's central bank, to be vice chair and Lael Brainard, former Treasury under secretary, as a board member. Both are awaiting Senate confirmation.

Stingy Viper Soars, Foresight Found Lacking

Two master limited partnerships began trading publicly this month following initial public offerings. The crude royalties harvester with a modest yield proved much more popular than the coal miner with a decent one.  

Foresight Energy Partners (NYSE: FELP) is a coal producer operating four underground mining complexes in the Illinois Basin. The partnership was formed in 2006 to develop and operate the Illinois mining assets of the Cline Group, a prominent mine developer. The $350 million IPO represented a 13.5 percent limited partner interest, putting the total market capitalization at $2.6 billion. The partnership has $1.3 billion of debt, giving it an enterprise value (EV) of $3.9 billion. The Cline Group owns 70 percent of the general partner, while private equity group Riverstone owns the other 30 percent.

Foresight Energy Partners is one of the largest owners of coal reserves in the US, and claims to be the lowest cost and highest margin domestic thermal coal producer. At 2014 production levels, the partnership's more than 3 billion tons of coal reserves are equivalent to 125 years of production. FELP produced 18 million tons of coal in 2013, and expects to produce 24.1 million tons in the 12 months ending June 30, 2015.

FELP's reserves and mines are located near multiple rail and river transportation access points, and it owns a 25 million ton per year barge loading river terminal on the Ohio River. It also has access to Gulf of Mexico terminal capacity of 12 million tons per year via contracts.

The IPO filings projected $412.9 million in EBITDA over next 12 months, giving the partnership an EV/EBITDA multiple of 8.5x. The partnership projects a minimum quarterly distribution of $0.3375, putting the annual yield at 6.75 percent based on the $20 targeted IPO price.

Foresight Energy Partners debuted on the New York Stock Exchange on June 18, and units traded down 4 percent followin! g the IPO. While some may question the wisdom of a new coal MLP given the general outlook for coal in the US, the coverage ratio is projected to be a conservative 1.3x for the next 12 months. The projected yield has risen to 6.9 percent based on Friday's close of $19.57.

Viper Energy Partners (NASDAQ: VNOM) also debuted on June 18, but saw much stronger demand. VNOM is a spinoff from one of the hottest independent oil and gas producers in the Permian Basin, Diamondback Energy (NASDAQ: FANG). Since its own IPO in October 2012, Diamondback Energy has rallied more than 400 percent, and its market capitalization has grown to $4.6 billion.

Viper Energy Partners owns mineral rights on 14,804 acres in the Permian Basin in West Texas, with an average 21 percent royalty interest on the oil and gas production. These mineral rights are leased to working interest owners who bear the costs of operation and development. Viper Energy Partners becomes the first US-listed partnership to rely on royalty payments, and it plans to grow distributions by acquiring additional mineral rights in the future.

Viper Energy Partners had scheduled the $100 million IPO at a price range midpoint of $20. The IPO represented 7 percent of the limited partner interest, with Diamondback Energy owning the other 93 percent, and the $20 share price would have valued the entire partnership at $1.5 billion. But demand proved extremely strong, and units priced at $26, then jumped to $34 during the first morning of trading.

The IPO filings projected $83.8 million in EBITDA over next 12 months, giving the partnership an EV/EBITDA multiple of 18.2x. The partnership expects to distribute $1.0994/unit over the next 12 months, putting the coverage ratio at 1.0x with an annual yield at 5.50 percent based on the $20 target price. However, with the unit price closing Friday at $33.99, the projected yield has dropped to 3.2 percent.

Given the commodity risk associated with Viper Energy Partners' business model and the ! now paltr! y 3.2 percent yield, this security could prove quite poisonous should commodity prices fall or interest rates rise.

(Follow Robert Rapier on Twitter, LinkedIn, or Facebook.)

Benzinga Weekly Preview: Busy Week For Economic Data

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Next week will be a busy one on the Economic calendar as several central banks will hold their April policy meetings and the US is expected to release the much anticipated non-farm payrolls data. In the US, most are expecting to see that the jobless rate fell as employers likely added more than 175,000 workers in March.

In Asia the focus will be on Japan where the nation will carry out its planned sales tax increase which will take sales taxes from 5 percent to 8 percent. The tax hike has been designed to help reduce the nation's debt, however many worry that a tax increase of this magnitude could have negative effects on the Japanese economy.

Investors will also have their eyes on General Motors as Chief Executive Officer Mary Barra is scheduled to testify before US policymakers on Tuesday. Barra will be tasked with explaining why it took the company so long to recall its 1.6 million defective vehicles which have been linked to 12 deaths.

Key Earnings Reports

Next week investors will be waiting for several key earnings reports including Synnex (NYSE: SNX), Micron Technology (NYSE: MU), and UTi Worldwide (NASDAQ: UTIW).

Synnex 

Synnex is expected to report first quarter EPS of $0.94 on revenue of $2.75 billion, compared to last year's EPS of $0.88 on revenue of $2.46 billion.

The analysts at S&P Capital IQ gave Synnex a hold rating with a $65.00 price target on March 22. S&P took into account the company's plans to acquire the customer care department at IBM.

"Our hold recommendation is based on valuation. We have a positive view of the pending deal to acquire IBM's customer care business, which would be combined with SNX's Concentrix subsidiary. The acquisition would cost $430 million in cash and $75 million in SNX stock, but would bring IBM's $1.2 billion business, with 170 clients, into the fold. Also, SNX would become a strategic partner with IBM. The close is expected, subject to customary approvals, in the first quarter of calendar 2014. More generally, we remain cautious about the economic backdrop, particularly given persistently high, albeit improving, unemployment in the U.S. Still, we are seeing some strength in select areas of the distribution business."

Micron Technology

Micron Technology is expected to report second quarter EPS of $0.74 on revenue of $3.97 billion, compared to last year's loss of $0.28 on revenue of $2.08 billion.

Merrill Lynch gave Micron an Underperform rating with a $19.50 price objective on March 19th, citing the company's potential for long term growth as it gains momentum.

#PreMarket Prep Guest List For The Week of March 31, 2014

"Management has addressed how Micron can be less vulnerable to recent weakness in spot given its high exposure to OEM sales and cost competitiveness. In fact, NAND price collapse (c.50% down YoY or high teens QoQ in the spot) should not be a management concern; still profitable DRAM (60%+ of total capacity), better than seasonal according to management, can remain a catalyst for the firm's overall earnings growth engine. Long-term growth momentum has also been well presented given promising demand areas: SSD, server/networking, China OEMs, etc"

On February 10, JMP Securities gave Micron a market outperform rating with a $33.00 target price, noting the benefits of the company's efforts to maintain supply growth.

"We reiterate our Market Outperform rating and raise our estimates and price target on Micron Technology from $31 to $33 due to persistent strength in DRAM pricing and favorable indications out of its 2014 Winter Analyst event. Even with the fire-damaged Hynix fab back on line, DRAM pricing continues to trend well above seasonal norms and we believe it is on track to achieve mid-single digits or better ASP improvement on the quarter vs. the expectation for flat that Micron set at earnings back in January. We estimate this DRAM strength is only partially offset by ongoing weakness in NAND, as Micron is moving the mix toward higher value SSD and mobile applications that are less subject to the mid-teens or worse pricing decline trending for NAND due to increasing TLC (Triple Level Cell) effects. Bigger picture, what jumped out at us this analyst day is that Micron is keeping strict ranks with other memory players in maintaining a commitment to disciplined supply growth that will not undermine the favorable status quo in pricing dynamics for the industry. With all other key memory industry players apparently on the same page, we raise our adjusted CY14 EPS estimate from $3.10 to $3.25 (Street $2.50) and our price target from $31 to $33 based on an unchanged ~10x PE/CY14 multiple that represents ~50% discount to our coverage mean in the high teens."

On February 10, Morgan Stanley gave Micron an equal-weight rating. The firm had an optimistic outlook, but said stability was still a big concern as equipment orders increase.

"We still feel like this is a strong cyclical environment, but are concerned about potential

supply growth. Key will be ongoing equipment orders from memory, and Micron's reaction to modest NAND weakness. On the positive side, the company remains committed to declines in DRAM wafer starts, expressed willingness to let inventory build up during periods of supply demand shift (predicated on long term stable pricing), said they will consider to reducing fab utilization during periods of modest weakness, and indicated they will continue to improve net debt."

S&P Capital IQ gave Micron a hold rating with a $28.00 price target on March 22nd. The analysts at S&P said they were optimistic about the company's future with its upcoming acquisition, however worried about growth prospects within the DRAM market.

"We forecast that revenues will rise 80% in FY 14 (Aug.), as MU benefits from the inclusion of the Elpida acquisition, and 4.6% in FY 15, following a 10% increase in FY 13.We remain cautious about growth prospects within the Dynamic Random Access Memory (DRAM) space given end-demand softness and increasing competitive threats to personal computers. Despite this, we think growth in mobile DRAM and a more rational supply environment will support average selling prices (ASPs).We like MU's increasing focus on the higher-growth-potential flash memory business, which should be supported by end-market growth for mobile devices such as tablets and smartphones. New product cycles such as Ultrabooks and Solid State Drives should also benefit MU over time, in our view."

UTi Worldwide

UTI Worldwide is expected to report a fourth quarter loss of $0.06 per share on revenue of $1.08 billion, compared to last year's EPS of $0.13 on revenue of $1.10 billion.

The analysts at Stifel gave UTi a Buy rating and lowered their price target to $14.00 on March 11. The team at Stifel said that although they were lowering their estimates, the still saw a positive future for the company's share and chose to maintain a Buy rating.

"UTi Worldwide recently tested investor patience with its negative preannouncement and disclosure of a "going concern" opinion by its auditors, which is highly unusual for a non-asset-based company that traditionally made money and was net-debt-free just a couple years ago. In the midst of its massive IT transformation initiative, numbers again are trending worse than we expected, as the company's EBITDA continues to slide. However, unlike its other competitors plagued by the lackluster forwarding market, UTi has a cost-cut story that should unfold later this year, assuming its timeline for completion of its 1View system rollout by August 31 is accurate. We are reducing our estimates significantly but believe the stock has sufficient upside potential from current levels to maintain our Buy rating."

S&P Capital IQ gave UTi a hold rating with a $17.00 price target on March 22nd, saying that the company's stock prices are fairly valued due to a recent share price decrease.

"Given a recent price drop, we find the shares fairly valued at recent levels. While UTIW is likely to be hurt by falling air freight volumes, we expect some improvement in demand as we move through calendar 2014.We also believe results will be hurt by rising purchased transportation costs for air and ocean freight volumes, but see additional capacity coming on line over time, which should help with this issue. UTIW should also get better traction from recent restructuring actions in FY 15. UTIW has had an erratic operating performance, with several recent EPS misses versus consensus expectations, but we see improved financial performance in FY 15."

Market Wrap For March 28: Markets Still Positive Despite Giving Up Early Gains

Morgan Stanley gave UTi an equal weight rating with a $23.00 price target on March 27, noting that the transportation sector is likely to rebound following the severe winter.

"After weeks of severe weather headwinds, Class I rail traffic grew ~5% & 6% YoY in weeks 11 & 12, respectively, and was stronger vs. normal seasonality. Though two weeks do not make a trend, if sustained, rebounding rail traffic could drive pos. mgmt. commentary on 2Q earnings calls."

Economic Releases

Central banks' April policy meetings will be in focus this week with several central banks including the Reserve Bank of Australia and the European Central Bank set to meet. The ECB will be the main event as investors scour next week's inflation data for clues about the bank's next move. This week has brought about quite a bit of speculation that the ECB will ease further in April either through a negative deposit rate or some kind of asset purchase program.

Daily Schedule

Monday

Earnings Releases Expected: UTi Worldwide (NASDAQ: UTIW) Economic Releases Expected: Chinese manufacturing PMI, Canadian GDP, French GDP, German retail sales, Japanese housing starts

Tuesday

Earnings Expected: Apollo Group, Inc. (NASDAQ: APOL) Economic Releases Expected: US manufacturing PMI, US redbook, eurozone unemployment rate, British manufacturing PMI, eurozone manufacturing PMI, RBA interest rate decision

Wednesday

Earnings Expected: Unifirst Corporation (NYSE: UNF), Monsanto Company (NYSE: MON), Acuity Brands Inc (NYSE: AYI) Economic Releases Expected:  Chinese services PMI, Australian trade balance, US crude inventory data, eurozone PPI

Thursday

Earnings Expected From: Global Payents Inc. (NYSE: GPN), Micron Technology, Inc. (NASDAQ: MU), Synnex Corporation (NYSE: SNX) Economic Releases Expected:  US services PMI, Canadian imports and exports, US trade balance, eurozone services PMI, ECB interest rate decision, British services PMI

Friday

Earnings Expected From:  CarMax (NYSE: KMX) Economic Releases Expected: US nonfarm payrolls, German factory orders

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© 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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Unemployment Among Gulf War-Era II Veterans Drops to 9%

In a headline that hardly sounds like good news, the Bureau of Labor Statistics announced today that the unemployment rate for veterans who served on active duty in the U.S. Armed Forces at any time since September 2001 — a group referred to as Gulf War-era II veterans — edged down to 9.0% in 2013. A number that still seems enormous considering the current unemployment rate in the United States is hovering in the 6.7% area.

Among Gulf War-era II veterans, the unemployment rates in 2013 for men (8.8 percent) and women (9.6 percent) were not statistically different from the prior year (9.5 percent and 12.5 percent, respectively). Among women, the unemployment rate for Gulf War-era II veterans (9.6 percent) was higher in 2013 than the rate for non veterans. Despite the best efforts of many of the nations largest corporations, jobs for returning veterans have been difficult to secure. This despite the fact that many of the men and women that serve in the military return with job skills that are superior to a large part of the domestic workforce. They also return with discipline that often also trumps the domestic workforce as well.

The Bureau of Labor Statistics highlighted some of the 2013 data:

Among all veterans, the unemployment rate for women declined to 6.9 percent in 2013. The rate for male veterans edged down to 6.5 percent.

Among the 722,000 unemployed veterans in 2013, 60 percent were age 45 and over. Thirty-five percent were age 25 to 44, and 5 percent were age 18 to 24.

Veterans with a service-connected disability had an unemployment rate of 6.2 percent in August 2013, little different than the rate for veterans with no disability (6.6 percent).

One in 3 employed veterans with a service-connected disability worked in the public sector in August 2013, compared with 1 in 5 veterans with no disability.

In 2013, the unemployment rate of veterans varied by state, ranging from over 10 percent in Michigan and New Jersey to under 4 percent in Delaware, Iowa, North Dakota, Vermont, and Virginia.

It is also important to remember that many of our veterans, both men and women, are in the Reserves or the National Guard. They often have ended up having to leave their families and their jobs for extended deployments. Fortunately, many of the businesses that these dedicated and patriotic citizens work for have kept their jobs open and secure until their return. A noble gesture for which they should be commended.

Hopefully the high number of unemployed veterans that served this nation will continue to fall. The 9% number hardly looks good in comparison to the general population numbers. However, the large number of people leaving the workforce is the highest since the 1970s, and it is skewing the current number lower than it actually may be.

GM issues 3 new recalls unrelated to switch

General Motors announced three new recalls -- not related to last month's ignition switch recall -- involving nearly 1.5 million vehicles.

The big automaker also said it will take a $300 million charge against first-quarter earnings to pay for the four recalls.

GM said the trio of new recalls is "a result of (CEO) Mary Barra's request for a comprehensive internal safety review following the ignition switch recall."

VIDEO: GM CEO Mary Barra offers video update on switch recall, company improvement efforts

Last month's switch recall involves 1.37 million vehicles in the U.S. and has triggered lawsuits and federal investigations into why GM knew of a switch problem as early as 2001 but only recalled the cars last month GM says it knows of 31 crashes and 12 deaths linked to the switch recall and new probe in Canada could add a recent death there.

The new recalls not connected to the earlier action:

• Seat-mounted side airbags could fail due to a fault in the wiring in 1.18 million full-size crossover SUVs, widely used as family vehicles: 2009-2013 Chevrolet Traverse, 2008-2013 Buick Enclave, 2008-2013 GMC Acadia and 2008-2010 Saturn Outlook

GM says the danger happens if the airbag warning light on the instrument panel illuminates, but the owner doesn't take the vehicle to a dealership to check the bags. Eventually, the wiring can fail and the bags won't work.

Dealers will remove a connector and solder and splice wires in the air bag harness. GM says it has no record of injuries or accidents as a result of the problem.

•A plug in the brake system of 63,900 2013 and 2014 Cadillac XTS full-size sedans can come loose, allowing corrosion in the system and causing overheating that could lead to an engine-compartment fire.

GM says it has reports to two fires at dealerships in dealer-owned cars, and two reports of warranty claims, but not fires, in customers' cars. No injuries have been reported.

•Unbelted front passengers in Chevrolet Express ! and GMC Savana full-size vans can suffer serious head injuries because the material covering the passenger-side air bag doesn't meet federal standards.

Passengers who wear safety belts are not at risk, GM says.

Involved are 303,000 2009-2014 vans with gross vehicle weight ratings of less than 10,000 lbs. -- standard- and medium-duty models. Such vans primarily are in commercial use by tradesmen and delivery services. Some are used as passenger shuttles by hotels, airports and churches.

GM issued a "stop delivery" order for models still at dealerships, until a fix can be developed. The car company says it is "working diligently" to come up with materials that will meet the head-injury standard for non-belted riders, but can't say how long that will take.

Cadillac XTS is being recalled for possible engine compartment fires related to brake system fault.(Photo: Cadillac)

Hot Diversified Bank Companies To Invest In 2015

The federal government shutdown cost taxpayers billions of dollars but at least a tiny fraction will be recouped: Federal employees will get paid just once��ot twice-- for not working.

All federal employees who collected unemployment insurance during the 16-day shutdown will have to return the payments because the workers are also receiving back pay, the Labor Department said late last week.

The agency earlier this month said it expected to issue guidance that likely would result in some states allowing federal employees to keep both the jobless benefits and the retroactive pay, depending on individual state laws.

In Oregon, for instance, a law permits employees to keep the benefits even if they receive back pay, as long as they did not perform any services during their furloughs. About 730 federal workers in Oregon made an initial claim for unemployment insurance during the shutdown and received about $390,000 in benefits, the state Employment Department says. The state paid the benefits but said it expected to be reimbursed by the federal government.

Hot Diversified Bank Companies To Invest In 2015: Location Based Technologies Inc (LBAS)

Location Based Technologies, Inc. (LBT), incorporated on April 20, 2006, designs, develops, and sells personal, pet, and vehicle locator devices and services including PocketFinder People, PocketFinder Pets and PocketFinder Vehicles. The Company markets and sells consumer and commercial location devices and services. Its devices utilize Assisted Global Positioning System (A-GPS) and General Packet Radio Service (GPRS) technologies in conjunction with its technologies designed to enhance the families to interact and stay connected around the world. The Company is a developer of the PocketFinder family of products and the PocketFinder Network. The PocketFinder family of products includes the PocketFinder People, PocketFinder Vehicle, PocketFinder Pets, PocketFinder Luggage, PocketFinder Mobile and PocketFinder Fleet. The PocketFinder is a small location device that enables a user to locate a device, person, or pet, at anytime from almost anywhere. PocketFinder personal locator devices are wireless.

The Company generate revenue by selling its products and charging customers an ongoing service fee, for which it offers monthly and annual subscription plans. The Company�� product, PocketFinder, is a small, waterproof and wireless location device that enables users to locate anyone or anything they care about, from a computer or Web-enabled device. Its products deliver critical information to users, such as: device location, longitude, latitude, heading speed and 60 days of location history. This information can be viewed passively through a user�� account or can be sent to a user via email or push notification if the user sets an alert. The target markets for the PocketFinder include: young children, seniors, people with special needs and people who need to track valuable assets such as luggage or sporting equipment. In addition to the PocketFinder, it also sell the PocketFinder Pet and the PocketFinder Vehicle products. The PocketFinder Pet is designed for pets weighing 15 pounds or more,! and it markets the PocketFinder Vehicle to families with new drivers, car enthusiasts, motorcycle owners, watercraft owners and business fleets. The PocketFinder Vehicle attaches directly to a battery or fuse box, so it has a constant supply of power. All PocketFinder products operate on the same user interface, which enables its customers receive the same features, functionality and user-experience, regardless of which product they own. To access their account or locate their devices, users can logon to the Company�� Website at www.pocketfinder.com or use its native iPhone, iPad or Android Apps.

The Company�� products are sold through various brick-and-mortar and online retailers and through its Website. It provides customer service and support in the United States through existing call centers owned by Affinitas. It provides wireless location based solutions for global positioning products along with its friendly user interface software system. PocketFinder and PocketFinder Vehicle devices are being sold in the United States and in Canada through the Apple Online Store and Apple Retail Stores. PocketFinder devices for Pets are available for purchase on its Website.

The Company competes with Geospatial Platform Providers, Application Developers, Garmin�� GTU-10, Qualcomm�� Tagg, Lo-Jack, SpotLight, Fleetmatics, NetworkFleet, and Qualcomm.

Advisors' Opinion:

• [By CRWE]

  Today, LBAS�remains (0.00%) +0.000 at $.132 with 9,470 shares in movement thus far (ref. google finance Delayed: 9:47AM EDT June 20, 2013).

  Location Based Technologies, Inc. previously received FCC and IC certification for its versatile LBT-886 device. These certifications are necessary before devices can be sold to consumers throughout the US and Canada.

  The LBT-886 device is available for manufacture in a 2G or 3G variant. The 3G penta-band variant will enable the device to function in countries which only operate on the 3G spectrum, such as Australia, South Korea, Japan and some areas of Canada. This global tracking solution also delivers additional features such as various environmental sensors or comes with an attachment with special capability designed to meet lone-worker or personnel security requirements

• [By CRWE]

  Today, LBAS has shed (-7.69%) -0.010 at $.120 with 95,100 shares in play thus far (ref. google finance Delayed: 12:21PM EDT August 15, 2013).

  Location Based Technologies, Inc. previously reported it has signed a distribution agreement with Beijing Lava Technology Co. Ltd., an Apple approved distributor for its online, brick and mortar stores, and authorized distributors in Asia. The agreement is one of the final steps preceding the launch of LBT�� GPS products into the Asian markets. Beijing Lava Technology Co. Ltd. serves China, Singapore, Japan, Korea, Taiwan, Malaysia, and Indonesia.

  LBT estimates that it will begin selling its PocketFinder devices in Singapore through Apple�� online store and authorized distributors in the near future with other Asian countries to follow thereafter.

Hot Diversified Bank Companies To Invest In 2015: SunPower Corp (SPWR)

SunPower Corporation, incorporated in April 1985, is a vertically integrated solar products and services company that designs, manufactures and delivers solar electric systems worldwide for residential, commercial, and utility-scale power plant customers. The Company operates in two business segments: the Utility and Power Plants (UPP) Segment and the Residential and Commercial (R&C) Segment. The UPP Segment refers to its solar products and systems business, which includes power plant project development and project sales, turn-key engineering, procurement and construction (EPC) services for power plant construction, and power plant operations and maintenance (O&M) services. UPP Segment also sells components, including huge volume of sales of solar panels and mounting systems to third parties, sometimes on a multi-year, firm commitment basis. The R&C Segment focuses on solar equipment sales into the residential and small commercial market through its third-party global dealer network, as well as direct sales and EPC and O&M services in the United States and Europe for rooftop and ground-mounted solar power systems for the new homes, commercial and public sectors. In May 2012, K Road Power Holdings, LLC (K Road) and SunPower Corp announced that K Road acquired the 25-megawatt (AC) McHenry Solar Project, which the Company designed. In January 2013, the Company MidAmerican Solar acquired the 579-megawatt Antelope Valley Solar Projects (AVSP), two co-located projects in Kern and Los Angeles Counties in Calif from SunPower.

In January 2012, the Company completed its acquisition of the wholly owned Total SA subsidiary Tenesol SA, a global solar provider. In September 2011, NRG Energy Inc. acquired 250 megawatt California Valley Solar Ranch (CVSR) project from SunPower. In June 2011, the Company introduced SunPower E20 Series Solar Panel (E20) series. The Company�� customers in its UPP Segment include investors, financial institutions, project developers, electric utilities, and independent po! wer producers in the United States, Europe, and Asia. In its R&C Segment, the Company primarily sells its products to commercial and governmental entities, production home builders, and its third-party global dealer network serving residential owners and small commercial building owners.

Solar Cells

The A-300 solar cell is a silicon solar cell with a specified power value of 3.1 watts and a conversion efficiency averaging between 20.0% and 21.5%. The Company�� A-330 solar cell delivers 3.3 watts with a conversion efficiency of up to 22.7%.

Solar Panels

The Company�� SunPower solar panel series include solutions, such as SunPower E18 Series Solar Panel (E18), SunPower E19 Series Solar Panel (E19), and SunPower E20 Series Solar Panel (E20). Available in a 72-cell configuration, the E18 series panel uses its A300 all back-contact solar cells and delivers a total panel conversion of 18.1% to 18.5%. Available in a 72, 96, and 128-cell configuration, the E19 series panel uses its A300 all back-contact solar cells and delivers total panel conversion of 19.3% to 19.7%. Available in a 96-cell configuration, the E20 series panel uses its A-330 all back-contact solar cells and delivers total panel conversion of up to 20.1%.

Inverters

The Company sells a line of SunPower branded inverters. The inverters are manufactured by third parties.

Roof Mounted Products

The roof mounted products include SunPower T-5 Solar Roof Tile System (T-5), SunPower T-10 Commercial Solar Roof Tiles (T-10), PowerGuard Roof System (PowerGuard) and SunTile Roof Integrated System (SunTile). Tilted at a 5-degree angle, the T-5 roof tile is a non-penetrating photovoltaic rooftop product that combines solar panel, frame, and mounting system. The T-5 solar roof tile systems are primarily sold through its R&C Segment.

Tilted at a 10-degree angle, the T-10 commercial solar roof tiles is a non-penetrating panel interlock system! . Dependi! ng on geographical location and local climate conditions, this can allow for the generation of up to 10% more annual energy output than traditional flat roof-mounted systems. The T-10 commercial solar roof tile is primarily sold through its R&C Segment.

PowerGuard is a non-penetrating roof-mounted solar panel that delivers electricity while insulating and protecting the roof membrane from ultraviolet rays and thermal degradation. The PowerGuard roof system is primarily sold through its R&C Segment. SunTile solar shingles are designed to replace multiple types of roof panels, including the common concrete flat, low and high profile S tile and composition shingles. The SunTile roof system is also sold through its R&C Segment.

Ground Mounted Products

The ground mounted products include SunPower T-0 Tracker (T-0) & SunPower T-20 Tracker (T-20), SunPower Oasis Power Plant (SunPower Oasis), SunPower C-7 Tracker (C-7), and Fixed Tilt and SunPower Tracker Systems for Parking Structures. The T-0 and T-20 trackers are single-axis tracking systems that automatically pivot solar panels to track the sun's movement throughout the day. This tracking feature increases the amount of sunlight that is captured and converted into energy by up to 30% over flat or fixed-tilt systems, depending on geographic location and local climate conditions. A single motor and drive mechanism can control 10 to 20 rows, or more than 200 kilo watts of solar panels. The T-0 and T-20 trackers have been installed in a range of geographical markets principally in the United States, Germany, Italy, Portugal, South Korea, and Spain. The T-0 and T-20 trackers are sold through both its UPP and R&C Segments.

The Oasis is a solar power block that scales from 1 mega watts distributed installations to central station power plants. Oasis provides a way to deploy utility-scale solar power systems, streaming the development and construction process while optimizing the use of available land. The SunPow! er Oasis ! is sold through its UPP Segment. The C-7 combines a horizontal single-axis tracker with rows of parabolic mirrors, reflecting light onto linear arrays of its solar cells. The C-7 tracker is sold through its UPP Segment. SunPower has developed designs for solar power systems for parking structures in multiple configurations. These dual-use systems typically incorporate solar panels into the roof of a carport or similar structure to deliver onsite solar power while providing shade and protection. They are suited for parking lots adjacent to facilities. Fixed Tilt and SunPower Tracker Systems for parking structures are sold through both its UPP and R&C Segments.

Other System Offerings

SunPower�� metal roof system is designed for sloped-metal roof buildings, which are used in some winery and warehouse applications. This solar power system is designed for rapid installation. It also offers other architectural products, such as day lighting with translucent solar panels.

Balance of System Components

Balance of system components are components of a solar power system other than the solar panels. It includes SunPower branded inverters, mounting structures, charge controllers, grid interconnection equipment, and other devices depending on the specific requirements of a particular system and project.

The Company competes with Canadian Solar Inc., JA Solar Holdings Co., Kyocera Corporation, Mitsubishi Corporation, Q-Cells AG, Sanyo Corporation, Sharp Corporation, SolarCity Corporation, SolarWorld AG, Sungevity, Inc., SunRun, Inc., Suntech Power Holdings Co. Ltd., Trina Solar Ltd., Yingli Green Energy Holding Co. Ltd., Abengoa Solar S.A., Acconia Energia S.A., AES Solar Energy Ltd., Chevron Energy Solutions, EDF Energy plc, First Solar Inc., NextEra Energy, Inc., OPDE Group, NRG Energy, Inc., Recurrent Energy, Sempra Energy, Skyline Solar, Inc., Solargen Energy, Inc., Solaria Corporation, SolFocus, Inc., SunEdison and Tenaska, Inc.

Advisors' Opinion:

• [By Travis Hoium]

  Ten years ago, it seemed impossible that solar power on rooftops would become a widespread reality. Today, the question is why it's not growing faster. Companies such as Sunrun, Clean Power Finance, SolarCity (NASDAQ: SCTY  ) , and SunPower (NASDAQ: SPWR  ) are all leading the charge in growing solar leasing for rooftops, blowing to top off the traditional energy model. The biggest hindrance is consumer awareness at this point.�

• [By Paul Ausick]

  But what does this resurrection mean for investors? With a couple of exceptions, solar stocks hit a peak in 2008. First Solar Inc. (NASDAQ: FSLR) topped $300 a share briefly, SunPower Corp. (NASDAQ: SPWR) topped $125 a share, JA Solar hit $120, Canadian Solar Inc. (NASDAQ: CSIQ) topped $40 and Trina Solar Ltd. (NYSE: TSL) reached its peak of more than $35 in mid-2007. At today’s prices one almost has to wonder if we are talking about the same companies. The only stock trading anywhere near its peak price of six years ago is Canadian Solar. JinkoSolar is near its all-time high again, but it was not publicly traded until mid-2010.

• [By Travis Hoium]

  SunPower (NASDAQ: SPWR  ) and SolarCity (NASDAQ: SCTY  ) have been on fire in 2013 and one of the big drivers is the solar leasing market. Both companies will generate revenue for 20 years or more from each lease signed, which should add big value for shareholders. But what are the most important qualities in a leasing company? Fool.com contributor Travis Hoium relays the takeaways from talks he had with two industry executives to discuss what will drive the future of this growing market.�

Hot Construction Companies To Buy Right Now: Triangle Energy(global)

Triangle Energy (Global) Limited engages in the exploration and production of gas primarily in Indonesia. The company holds a 100% working interest in the production sharing contract of the Pase Block consisting of 3 production wells covering an area of approximately 922 square kilometers located in Aceh province, north Sumatra, Indonesia. It also holds a 20% interest in Reid?s Dome gas field, which covers an area of 181 square kilometers located in the Bowen Basin, Queensland. The company is based in Cottesloe, Australia.

Advisors' Opinion:

• [By Fiona MacDonald]

  ��eople are optimistic and believe the government will do something with the development plan,��Fouad Darwish, head of brokerage at Kuwait-based Global Investment House KSCC (GLOBAL), said by phone. ��he optimism is so strong that people even ignored the fact that many companies didn�� announce their results on time, which usually led to selling off.��

Hot Diversified Bank Companies To Invest In 2015: Bovis Homes Group PLC (BVS)

Bovis Homes Group PLC is a builder of traditional homes in England and Wales. The Company�� business involves the designing, building and selling of new homes for both private and public sector customers. The Company delivers projects such as Land acquisition, Planning, Legal, Design, Surveying, Engineering, Purchasing, Construction, Sales and marketing, Public relations and Customer service. Advisors' Opinion:

• [By Inyoung Hwang]

  Bovis Homes Group Plc (BVS) climbed 4 percent to 790 pence. Liberum Capital Ltd. raised its rating on the housebuilder to buy from hold. Persimmon Plc (PSN), the U.K.�� largest residential property developer, gained 2.5 percent to 1,255 pence.

Hot Diversified Bank Companies To Invest In 2015: Teck Resources Ltd(TCK)

Teck Resources Limited operates as a diversified mining, mineral processing, and metallurgical company. It is involved in exploring, developing, smelting, refining, safety, environmental protecting, product stewardship, recycling, and researching activities. The company offers zinc and lead concentrates, and copper and molybdenum concentrates; zinc and lead, and alloys in a range of compositions and shapes; specialty metals, such as germanium, indium, and cadmium; and precious metals, including refined silver and gold dore. It also provides materials comprising low alpha lead materials, as well as delivers low alpha tin and copper electroplating anodes for semiconductors and integrated circuits; indium-based paste for thermal interfaces; and metal salt solutions used in the production of solar panels and other plating applications. In addition, Teck Resources Limited offers non-ferrous metal refining, metal alloying and casting, electro-winning and electro-refining, metal distilling, metal atomizing, metal salt producing, and metal recycling services for product development. Further, it provides industrial chemicals comprising copper arsenate, copper sulphate pentahydrate, ferrous granules, molten sulphur, sodium antimonate, sulphur dioxide, and sulphuric acid; ammonium sulphate solution and zinc sulphate solution; steelmaking coal; and fertilizers. The company has exploration operations in various countries of the Americas, the Asia Pacific, Europe, and Africa. Teck Resources Limited holds interest in oil sands development assets; wind power project; and a portfolio of copper, zinc, and gold exploration properties. It also owns interests in approximately 13 mines in Canada, the United States, Chile, and Peru, as well as 1 metallurgical complex in Canada. The company was formerly known as Teck Cominco Limited and changed its name to Teck Resources Limited in April 2009. Teck Resources Limited was founded in 1906 and is headquartered in Vancou ver, Canada.

Advisors' Opinion:

• [By Joshua Bondy]

  Teck Resources (NYSE: TCK  ) is a large diversified miner with significant interests in copper, energy, and metallurgical coal. Its 2012 copper cash costs after by-products were an economical at $1.56 per pound. In light of recent price declines in copper and other commodities it has put off $650 million in capex for its Quintette�mine.�As of the second quarter of 2013 it hopes to cut $250 million more in annual costs.�

• [By Dan Caplinger]

  The biggest challenge for NovaGold has been convincing its development partners to take action on its primary mining properties. The Donlin Gold project in Alaska is one of the largest known undeveloped gold deposits in the world, according to the company, but joint-venture partner Barrick Gold (NYSE: ABX  ) said last year that the economics of the mine didn't justify further action on its part, and as the deep pocket in the venture, Barrick is in a far better position to invest capital on Donlin than NovaGold. Similarly, high production costs at NovaGold's Galore Creek joint venture with Teck Resources (NYSE: TCK  ) has led NovaGold to consider a sale of its 50% interest in the venture in order to raise capital and focus on Donlin.

• [By Ben Levisohn]

  Against that backdrop, Cowen’s Daniel Scott and Bryan Bergin have decided to cut their ratings on met coal producers Alpha Natural Resources, Walter Energy and Teck Resources (TCK) to Market Perform from Outperform. Scott and Bergin explain why:

Men's Wearhouse Finally Snags Rival, But Jos. A. Bank Is The Real Winner

The next time you're looking to negotiate a deal, give the folks at Jos. A. Bank a call.

After five months of back and forth, Jos. A. Bank agreed to be acquired by Men's Wearhouse Men's Wearhouse in a deal worth $1.8 billion. Men's Wearhouse will pay $65 per share in cash to purchase its smaller rival.

Men's Wearhouse and Jos have been playing hard to get with one another since October. That was when Jos made the first move and bid for its larger rival. Men's Wearhouse rejected the offer, but it then chased Hampstead, MD-based Jos. A. Bank for months, making three bids for the company. It was rejected by Jos each time before finally scoring the deal today.

"This was an exciting cat and mouse game in a relatively boring, low-growth industry," says Brian Sozzi, CEO & chief equities strategist at Belus Capital Advisors.

While Men's Wearhouse is finally getting what it wants by picking up its smaller suit-selling competitor, Jos A. Bank is the real winner of this M&A saga.

Though Men's Wearhouse was making the most of the bids (it even took a hostile approach in January), Jos. A. Bank was the true aggressor throughout the process. Jos made the first move when it made a bold $2.3 billion bid, and when Men's Wearhouse reciprocated with bids of its own, Jos pushed back hard saying it wasn't interested.

Robert N. Wildrick, chairman of Jos. A. Bank, said back in January, "Our Board of Directors firmly believes that the Men's Wearhouse offer is inadequate and significantly undervalues Jos. A. Bank and its near- and long-term potential."

But even as it continued to reject the bids, Jos was likely interested in a deal with Men's Wearhouse all along. Why? It wanted the best possible offer. "Jos played Men's Wearhouse like a fiddle," Sozzi says.

Jos. A. Bank even went as far as to make an offer for Eddie Bauer in February for $825 million. "They had no intention of buying Eddie Bauer. It was an effort to get the last dime out of Men's Wearhouse," Sozzi addds.

It worked.

Less than two weeks later, Men's Wearhouse increased its offer to $63.50 per share from its previous $57.50 offer. Days later, Jos was ready to talk and agreed to exchange confidential financials with Men's Wearhouse. Today's deal has Men's Wearhouse paying $65.00, or total consideration of $1.8 billion. That's up from the first offer from Men's Wearhouse at $55 per share, which represented an implied enterprise value of approximately $1.2 billion.

"This was Jos. A. Bank's show and Men's Wearhouse was living in it,"  says Sozzi, who predicted in October the two retailers would eventually agree to a deal.

The agreement is giving shareholders of both companies something to cheer about. Jos shares are up 3.9% while Men's Wearhouse shares are up 5.2% this afternoon.

James Gellert, CEO of Rapid Ratings, whose company rates public companies on their financial health, scores them from 0 to 100. Jos. A. Bank and Men's Wearhouse score a 69 and 62, respectively. Gellert says both companies have something to gain in the deal.

"Neither is generating impressive revenue but both have good margins meaning they are good at cost efficiencies," he says. The two companies will have a chance to cut costs further after they merge, specifically in their supply chain, Gellert adds.

There are still more crucial details that will need to be hammered out. Among them: What will the future management team look like? Leadership was reportedly a point of contention during the five-month back and forth.

Top Airline Companies For 2015

It's that time of the month again; time to review the major airlines' unit revenue results. Several major airlines complained about deteriorating booking trends during March, particularly for pricier last-minute ticket purchases. Here are the results for the five top U.S. carriers:

Airline

Unit Revenue Gain

AMR (NASDAQOTH: AAMRQ  )

0.3%

Delta Air LInes (NYSE: DAL  )

2.0%

Southwest Airlines (NYSE: LUV  )

Flat

United Continental (NYSE: UAL  )

6.5%-7.5%

Top Airline Companies For 2015: ANA Holdings Inc (ALNPF)

ANA HOLDINGS INC., formerly All Nippon Airways Co., Ltd., is a Japan-based airline holding company. Its Air Transportation segment is engaged in the air transportation business, the provision of various services at airports, the provision of reservation services via telephone, the freight express business, and the maintenance of aircrafts in domestic and overseas markets. The Traveling segment plans and sells tour packages under the brand names ANA Hello Tour and ANA Sky Holiday, it also offers services to travelers at arrival areas and sells travel products and air tickets. The Others segment involves in the information communication, trading and merchandise business, building management, logistics and airplane fixture repair business, and hotel operation. On March 4 and March 5, 2013, it fully acquired all shares of one and two consolidated subsidiaries through stock swap, respectively, made them become wholly-owned subsidiaries. Advisors' Opinion:

• [By Daniel Inman]

  In Tokyo, ANA Holdings (JP:9202) � (ALNPF) �declined 4.7% after the airline lowered its 2013 fiscal-year net profit forecast by 65% on higher fuel costs and slow service expansion because of delays in Boeing (BA) �787 Dreamliner deliveries.

Top Airline Companies For 2015: Gogo Inc (GOGO)

Gogo Inc incorporated on December 14, 2009, is a holding company. The Company operates through its two operating subsidiaries, Gogo LLC and Aircell Business Aviation Services LLC. The Company provides in-flight connectivity and wireless in-cabin digital entertainment solutions. It provide turnkey solutions for passengers to extend their connected lifestyles to the aircraft cabin. It operates in two segments: commercial aviation (CA) and business aviation (BA). Its CA business provides in-flight connectivity and digital entertainment solutions to commercial airline passengers through their personal Wi-Fi enabled devices.

The Company provides Gogo Connectivity to passengers to nine North American airlines that provide Internet connectivity to their passengers. It provide Gogo Connectivity to passengers on Delta Air Lines, American Airlines, Virgin America, Alaska Airlines, US Airways, Frontier Airlines and Air Tran Airways. It also provide Gogo Connectivity to passengers on a small number of aircraft operated by United Airlines and Air Canada. As of September 30, 2011, the Company had equipped 1,177 commercial aircraft, representing approximately 85% of Internet-enabled North American commercial aircraft, which were operated on more than 4,200 daily flights.

The Company�� BA segment sells equipment and provides services for in-flight Internet connectivity and other voice and data communications under its Gogo Biz and Aircell branded products and services. BA�� customers include original equipment manufacturers of private jet aircraft such as Gulfstream, Cessna, Hawker Beechcraft, Bombardier, Dassault, Embraer, NetJets, Flexjets, Flight Options and CitationAir. It sells equipment for three of the primary connectivity network options in the business aviation market: Gogo Biz, through which it delivers broadband Internet connectivity over its (air-to-ground )ATG network, and the Iridium and Inmarsat SwiftBroadband satellite networks. As of September 30, 2011, the Company had m! ore than 700 Gogo Biz systems in operation and more than 4,600 aircraft with Iridium satellite communications systems in operation, and it has sold more than 100 Inmarsat SwiftBroadband systems. It provides in-flight broadband connectivity across the contiguous United States and portions of Alaska through 3 MHz of FCC-licensed ATG spectrum and its network of cell sites.

Through its Gogo platform, the Company provides passengers with a convenient and easy way to access the Internet, view video content, send and receive email and instant messages, and access corporate VPNs on Gogo-equipped commercial aircraft. It provides Internet access through Gogo Connectivity, on-demand streaming video offerings through Gogo Vision and access to a variety of free entertainment and service offerings, customized for each airline, through Gogo Signature Services.

The Company competes with Panasonic Avionics, Row 44, OnAir, LiveTV and Thales.

Advisors' Opinion:

• [By Jake L'Ecuyer]

  Equities Trading DOWN
  Shares of Gogo (NASDAQ: GOGO) were 28.56 percent to $13.12 following news that AT&T (NYSE: T) intended to launch high-speed 4G in-flight connectivity service.

• [By Jake L'Ecuyer]

  Gogo (NASDAQ: GOGO) shares were also up, gaining 8.89 percent to $12.99 after the company reported upbeat Q1 results. Gogo posted a quarterly loss of $16.9 million, or $0.20 per share, versus a year-ago loss of $32.5 million, or $4.77 per share.

• [By John Udovich]

  The Iridium Communications, Inc. (NASDAQ: IRDM) fiasco about a decade ago might offer investors a cautionary tale about getting into small cap in-flight wifi stock Gogo, Inc. (NASDAQ: GOGO) too soon. Moreover, Gogo, Inc. just had an IPO, but Mad Money’s Cramer recently described that IPO as “horrible” and that "it's still bad” plus there are some issues with the company's in-flight wifi service itself.

• [By Jonas Elmerraji]

   

  Nearest Resistance: $16��br>Nearest Support: $14��br>Catalyst: Analyst Upgrade

  Inflight internet provider Gogo (GOGO) is up more than 9% this afternoon, following an analyst upgrade from UBS. The bank pegged a $23 price target on the stock, upping its rating from neutral to buy. After selling off hard earlier this month on competition fears, the upgrade is proving to be enough of a catalyst to break shares out above $14.

  After trading lower for all of 2014, GOGO was starting to look "bottomy" at the start of May thanks to a short-term inverse head and shoulders pattern -- that pattern is getting triggered by today's upgrade news. While the downtrend is still very much intact for GOGO, the near-term trajectory for shares is pointing higher from here.

Top Dividend Stocks To Invest In 2015: Delta Air Lines Inc (DAL)

Delta Air Lines, Inc. (Delta) provides scheduled air transportation for passengers and cargo throughout the United States and around the world. The Company�� route network gives it a presence in every domestic and international market. Delta�� route network is centered around the hub system it operate at airports in Amsterdam, Atlanta, Cincinnati, Detroit, Memphis, Minneapolis-St. Paul, New York-JFK, Paris-Charles de Gaulle, Salt Lake City and Tokyo-Narita. Each of these hub operations includes flights that gather and distribute traffic from markets in the geographic region surrounding the hub to domestic and international cities and to other hubs. The Company�� network is supported by a fleet of aircraft that is varied in terms of size and capabilities.

Delta has bilateral and multilateral marketing alliances with foreign airlines to improve its access to international markets. These arrangements can include code-sharing, reciprocal frequent flyer program benefits, shared or reciprocal access to passenger lounges, joint promotions, common use of airport gates and ticket counters, ticket office co-location, and other marketing agreements. Its international code-sharing agreements enable it to market and sell seats to an expanded number of international destinations. The Company has international codeshare arrangements with Aeromexico, Air France, Air Nigeria, Alitalia, Aeroflot, China Airlines, China Eastern, China Southern, CSA Czech Airlines, KLM Royal Dutch Airlines, Korean Air, Olympic Air, Royal Air Maroc, VRG Linhas Aereas (operating as GOL), Vietnam Airlines, Virgin Australia and WestJet Airlines.

In addition to the Company�� marketing alliance agreements with individual foreign airlines, it is a member of the SkyTeam airline alliance. Delta also has frequent flyer and reciprocal lounge agreements with Hawaiian Airlines, and codesharing agreements with American Eagle Airlines (American Eagle) and Hawaiian Airlines. It has air service agreements with multiple do! mestic regional air carriers that feed traffic to its route system by serving passengers primarily in small-and medium-sized cities.

Through the Company�� regional carrier program, it has contractual arrangements with 10 regional carriers to operate regional jet and, in certain cases, turbo-prop aircraft using its DL designator code. In addition to Delta�� wholly owned subsidiary, Comair, it has contractual arrangements with ExpressJet Airlines, Inc. and SkyWest Airlines, Inc., both subsidiaries of SkyWest, Inc.; Chautauqua Airlines, Inc. and Shuttle America Corporation, both subsidiaries of Republic Airways Holdings, Inc.; Pinnacle Airlines, Inc. and Mesaba Aviation, Inc. (Mesaba), both subsidiaries of Pinnacle Airlines Corp. (Pinnacle); Compass Airlines, Inc. (Compass) and GoJet Airlines, LLC, both subsidiaries of Trans States Holdings, Inc. (Trans States), and American Eagle.

The Company�� SkyMiles program allows program members to earn mileage for travel awards by flying on Delta, Delta�� regional carriers and other participating airlines. Mileage credit may also be earned by using certain services offered by program participants, such as credit card companies, hotels and car rental agencies. In addition, individuals and companies may purchase mileage credits. The Company reserves the right to terminate the program with six months advance notice, and to change the program�� terms and conditions at any time without notice.

SkyMiles program mileage credits can be redeemed for air travel on Delta and participating airlines, for membership in the Company�� Delta Sky Clubs and for other program participant awards. Mileage credits are subject to certain transfer restrictions and travel awards are subject to capacity controlled seating. During the year ended December 31, 2011, program members redeemed more than 275 billion miles in the SkyMiles program for more than 12 million award redemptions. During 2011, 8.2% of revenue miles flown on Delta were from a! ward trav! el.

The Company generates cargo revenues in domestic and international markets through the use of cargo space on regularly scheduled passenger aircraft. Delta is a member of SkyTeam Cargo, an airline cargo alliance. SkyTeam Cargo offers a network spanning six continents and provides customers an international product line.

The Company has several other businesses arising from its airline operations, including aircraft maintenance, repair and overhaul (MRO); staffing services for third parties; vacation wholesale operations, and its private jet operations. Delta�� MRO operation, known as Delta TechOps, is an airline MRO in North America. In addition to providing maintenance and engineering support for its fleet of approximately 775 aircraft, Delta TechOps serves more than 150 aviation and airline customers. Its staffing services business, Delta Global Services, provides staffing services, professional security, training services and aviation solutions to approximately 150 customers. The Company�� vacation wholesale business, MLT Vacations, is the provider of vacation packages in the United States. Its private jet operations, Delta Private Jets, provides aircraft charters, aircraft management and programs allowing members to purchase flight time by the hour.

The Company competes with SkyTeam, United Air Lines, Continental Airlines, Lufthansa German Airlines, Air Canada, American Airlines, British Airways and Qantas.

Advisors' Opinion:

• [By WWW.DAILYFINANCE.COM]

  Justin Sullivan/Getty Images United Airlines is the one U.S. carrier that can't seem to get its act together. While all the other major airlines made money in the first quarter, United lost $609 million during the first three months of this year. United attributed $200 million of its loss to the "historic severe" winter weather that impacted much of the U.S. this past winter. But by comparison, Delta Air Lines (DAL) made $213 million in the same quarter while dealing with the same ice and snow storms. Chicago-based United (UAL) is still struggling to combine systems and see financial benefits following its 2010 merger with Continental Airlines. In the first quarter, its cost for each mile passengers flew rose 1 percent but its related revenue fell 2 percent. It simply isn't able to charge high enough airfares. United lost $1.66 a share, worse than the $1.26 a share it lost during the same period last year. Excluding special items, the loss was $1.33 a share, barely beating the $1.35 loss expected by Wall Street analysts surveyed by FactSet. United's revenue slipped 0.3 percent to $8.7 billion, just short of the $8.71 billion Wall Street analysts had expected. The one bright spot for United was that it paid less for fuel: $3.18 a gallon, down from $3.28 during last year's first quarter. Considering that the airline used 916 million gallons during the period, that added up to $133 million in savings. "While we are not pleased with our first-quarter financial results, we are building a strong foundation that will result in improved financial performance," John Rainey, chief financial officer for United Continental Holdings, Inc., said in a statement. United also lost $21 million during the quarter due to an exchange rate loss in Venezuela. Approximately $100 million of the company's unrestricted cash balance was held as Venezuelan bolivars as of March 31, 2014. All international airlines flying there have struggled with a quickly devaluing currency an

• [By Ben Levisohn]

  Based on our revised forecasts, and on a fully taxed basis, shares in UAL are trading at 13x 2014E earnings, vs. 10x for [Delta Air Lines (DAL)] and 6x for [US Airways (LCC). Meanwhile, our expectations ask little of Delta�� or US Airways��management aside from staying the course and maintaining momentum. Meanwhile, even our reduced expectations for United require relatively heavy lifting by management. We simply are more comfortable recommending cheaper stocks where little incremental is required from management than recommending more expensive names where the execution bar is set high…

• [By Ben Levisohn]

  Delta Air Lines (DAL) has gained 1.2% to $24.48 after it said that revenue growth grew by 5.5% in September.

  Baxter International (BAX) has dropped 1.5% to 64.11 after it was cut to Neutral from Outperform at Credit Suisse.

• [By Ben Levisohn]

  Delta Air Lines (DAL) has gained 133% so far this year, but that hasn’t stopped the folks at Barclays from putting it “at the top of [its] airlines list for 2014.”

  Bloomberg News

  Sure that gain is huge, both on its own terms and relative to its competitors. Delta has outgained nearly all its peers, as Southwest Airlines (LUV) has gained 82% in 2013, Alaska Air (ALK) has risen 68% and United Continental (UAL) is up 61%. Spirit Airlines (SAVE), with a 144% rise, was one of the few airlines to trump Delta.

  So why is Barclays still bullish? David Fintzen and team explain why they left Delta’s investor meeting yesterday feeling optimistic:

  The focus was rightfully on the ��ustainability��question that we think remains central to the long-term upside in DAL shares. Specifically, a long-term operating margin target of 10-12% was encouraging, but also strikes us as realistic given the initiatives (re-fleeting, etc) underway. Secondly, we were encouraged by comments that margin improvement can still come from the ��ore��of the network, not just the outliers. It�� hard for us to quantify, but setting a high threshold (i.e. not simply accepting an 8% margin) in a route/city/hub strikes us as a seemingly simple mindset change that matters (and needs to become engrained in the industry). On the cost side, similarly, multiple comments around ��estoring balance to the supply chain��strike us as similarly hard to quantify, but indicative of an expectation to push margins higher.

  Delta has gained 1.9% to $28.19 today at 1:48 p.m., while United Continental has risen 3.4% to $37.83,�Spirit Airlines has advanced 2.2% to $43.32, and Southwest, which was upgraded by Merrill Lynch today, has jumped 3.6% to $18.62. Alaska Air has dropped 1.3% to $72.49.

Top Airline Companies For 2015: Grupo Aeromexico SAB de CV (AEROMEX*)

Grupo Aeromexico SAB de CV is a Mexican holding company primarily engaged in the provision of passenger and cargo air transport services. It offers destinations in Mexico, the United States, Europe, Central and South America, Asia and Canada. It operates a fleet of over 110 aircrafts. The Company is primarily engaged in the passenger transportation segment, comprising regional, domestic and international routes, and package holidays; as well as in cargo transportation segment, handled mainly by its subsidiary Aeromexico Cargo. By its subsidiaries the Company is also engaged in real estate sector and in providing services to the aviation companies, including personnel training, management, and aircraft maintenance and modification. Its subsidiaries include Aerovias de Mexico SA de CV, Premier Loyalty & Marketing SAPI de CV, and Inmobiliaria Avenida Fuerza Aerea Mexicana 416 SA de CV, among others. In addition, it is a member of the SkyTeam airline alliance. Advisors' Opinion:

• [By Jonathan Levin]

  Volaris became Mexico�� second publicly traded carrier, after larger competitor Grupo Aeromexico SAB (AEROMEX*) sold stock in 2011. Airlines in Mexico have expanded into a void left when Cia. Mexicana de Aviacion, then largest based on passenger traffic, sought protection from creditors and ceased operations in 2010.

Top Airline Companies For 2015: Alaska Air Group Inc. (ALK)

Alaska Air Group, Inc., through its subsidiaries, Alaska Airlines, Inc. and Horizon Air Industries, Inc., operates as an airline company serving destinations in the western United States, Canada, and Mexico. The company provides passenger air services; and freight and mail services primarily to and within the state of Alaska and on the West Coast. As of December 31, 2009, it operated a fleet of 110 jet aircraft; and Horizon Air Industries operated a fleet of 18 jets and 40 turboprop aircraft. The company was founded in 1932 and is based in Seattle, Washington.

Advisors' Opinion:

• [By Ben Levisohn]

  Spirit Airlines (SAVE), Delta Air Lines (DAL),�Alaska Air (ALK) and American Airlines (AAL) ranked behind Allegiant and all had ROIC ��WACC spreads that were 4 ��5 points. We are of the view that an airline with ROIC – WACC spread of at least 3 points (based on the industry�� historical WACC) has sufficient flexibility to pay down debt, re-invest in the business, and pursue pro-shareholder initiatives. If current trends hold, we believe United Continental (UAL) with a 2.3 point spread (produced in 2013) will be well-positioned to return capital to shareholders by 2015.

• [By Adam Levine-Weinberg]

  US Airways (NYSE: LCC  ) has also favored the A321 recently, and has the largest A321 fleet in the world. All of its 16 narrowbody deliveries this year will be A321s, which have 30% more seats than the Boeing 737-400s that are being retired. Meanwhile, Alaska Air (NYSE: ALK  ) is following Southwest by moving to new "slimline" seats that will allow it to add six seats to each of its 737-800 aircraft and nine seats to each 737-900 aircraft. Moreover, while Alaska currently operates a variety of Boeing 737 models, the vast majority of its future orders are for the largest variant. These new aircraft, which seat 181 passengers, are replacing older planes with as few as 124 seats each.

• [By Stephen Quickel]

  Seattle-based Alaska Air Group (ALK), under attack by Delta Air Lines on its home turf, has been expanding southward into Salt Lake City, New Orleans, and Tampa.

• [By Dan Radovsky]

  Most passengers buying tickets on Alaska Airlines (NYSE: ALK  ) on or after Oct. 30 will be paying higher fees for checked baggage and for changing or cancelling their tickets, the airline announced today.

Top Airline Companies For 2015: Southwest Airlines Co (LUV)

Southwest Airlines Co., incorporated on March 9, 1967, operates Southwest Airlines, a passenger airline, which provides scheduled air transportation in the United States. As of December 31, 2011, the Company was serving 72 cities in 37 states throughout the United States. During the year ended December 31, 2011, the Company added addition services in two new states and three new cities: Charleston, South Carolina; Greenville-Spartanburg, South Carolina; and Newark, New Jersey. Southwest provides point-to-point. On May 2, 2011, the Company acquired AirTran Holdings, Inc. (AirTran).

AirTran�� route system provides hub-and-spoke, rather than point-to-point, service, with approximately half of AirTran�� flights originating or terminating at its hub in Atlanta, Georgia. AirTran also serves a range of markets with non-stop service from bases of operation in Baltimore, Maryland; Milwaukee, Wisconsin; and Orlando, Florida. As of December 31, 2011, AirTran was serving 68 United States and near-international destinations, including San Juan, Puerto Rico; Cancun, Mexico; Montego Bay, Jamaica; Nassau, The Bahamas; Oranjestad, Aruba; Punta Cana, Dominican Republic, and Bermuda. As of January 31, 2012, AirTran served 65 destinations. During 2011, approximately 71% of Southwest�� customers flew non-stop, and Southwest�� average aircraft trip stage length was 664 miles with an average duration of approximately 1.8 hours.

As of December 31, 2011, Southwest offered 25 weekday roundtrips from Dallas Love Field to Houston Hobby, 13 weekday roundtrips from Phoenix to Las Vegas, 13 weekday roundtrips from Burbank to Oakland, and 12 weekday roundtrips from Los Angeles International to Oakland. Southwest offers connecting service opportunities from over 60 Southwest cities to different Volaris airports in Mexico including Aguascalientes, Guadalajara, Mexico City (MEX), Mexico City-Toluca (TLC), Morelia, and Zacatecas. The Company�� International Connect portal conducts two separate transac! tions: one with Southwest�� reservation system and one with Volaris�� reservation system.

Southwest bundles fares into three categories: Wanna Get Away, Anytime, and Business Select. Wanna Get Away fares are lowest fares. Business Select fares are refundable and changeable, and funds may be applied toward future travel on Southwest. Business Select fares also include additional perks, such as priority boarding, a frequent flyer point multiplier, priority security and ticket counter access in select airports, and one complimentary adult beverage coupon for the day of travel. The Company�� Internet Website, southwest.com, is the avenue for Southwest Customers to purchase tickets online. During 2011, southwest.com accounted for approximately 78% of all Southwest bookings. During 2011, approximately 84% of Southwest�� Passenger revenues came through its Website, including revenues from SWABIZ, the Company�� business travel reservation Web page.

Advisors' Opinion:

• [By Dan Caplinger]

  Southwest Airlines (NYSE: LUV  ) will release its quarterly report tomorrow, and investors expect the quirky airline to continue its tradition of strong financials. The question, though, is whether Southwest earnings will grow as quickly as some of its peers, which have been faster to climb onto money-making strategies like baggage fees and other ancillary charges to enhance their revenue.

• [By Ben Levisohn]

  Airline stocks–from American Airlines (AAL) and United Continental (UAL) to Southewest Airlines (LUV) and Delta Air Lines (DAL)–have shown little of the weakness that has dragged down the stock market this year. Can they keep heading higher?

• [By Paul Ausick]

  The two airlines on the list are JetBlue Airways Corp. (NASDAQ: JBLU) and Southwest Airlines Co. (NYSE: LUV). That any airlines at all make such a list is something of a miracle.

Top Airline Companies For 2015: Singapore Airlines Ltd (SINGY)

Singapore Airlines Limited is a passenger air transportation company. The Company, together with its subsidiaries, is engaged in passenger and cargo air transportation, engineering services, training of pilots, air charters and tour wholesaling and related activities. The Company consists of 101 aircrafts. The Company operates in four segments: airline operations, cargo operations, engineering services and others. The Company's subsidiaries are SIA Engineering Company Limited (SIAEC), SIA Cargo and SilkAir (Singapore) Private Limited (SilkAir). Effective December 24, 2013, Singapore Airlines Ltd, a unit of Temasek Holdings (Pte) Ltd, raised its interest to 40.004% from 32.67% by acquiring a 7.334% interest in Tiger Airways Holdings Ltd from Dahlia Investments Ptye Ltd and Aranda Investments Pte Ltd. Advisors' Opinion:

• [By Bruce Kennedy]

  Business travel columnist Joe Brancatelli reports the world's longest non-stop commercial route, the Singapore Airlines (OTC: SINGY) 18-hour, business class-only flight between Newark, N.J. and Singapore, will end on Saturday. The airline also retired the world's second-longest non-stop flight, Los Angeles-to-Singapore, last month.

Top Airline Companies For 2015: Virgin Australia Holdings Ltd (VBHLF)

Virgin Australia Holdings Limited (VAH) is an Australia-based company engaged in the development and operation of domestic and international airlines. VAH�� fleet includes ATR-72, Embraer 190, Boeing 737-700, Boeing 737-800, AIRBUS A330 and Boeing 777-300ER. It product includes Airbus A330 Business Class. During the fiscal year ended June 30, 2012, the Company carried 19,468,929 guests on 216 city pairs to 52 destinations, and operated 162,817 flights. On February 22, 2012, under the proposal, all of the shares in the international airline business of Virgin Australia were transferred to a new holding company, Virgin Australia International Holdings Pty Ltd. In April 2013, it acquired 100% of the issued share capital in Skywest Airlines Ltd. In July 2013, Virgin Australia Holdings Limited announced that it has acquired 60% interest of Tiger Airways Australia Pty Limited from Tiger Airways Holdings Limited. Advisors' Opinion:

• [By MARKETWATCH]

  LOS ANGELES (MarketWatch) -- Australian stocks gave ground in early Friday trading, with banks broadly lower after overnight losses in the U.S., where investors worried that better-than-expected data would prompt the Federal Reserve to roll back stimulus soon. The S&P/ASX 200 (AU:XJO) lost 0.4% to 5,178.30, as National Australia Bank Ltd. (AU:NAB) (NAUBF) fell 1.8%, Australia & New Zealand Banking Group (AU:ANZ) (ANEWF) lost 0.8%, and Macquarie Group Ltd. (AU:MQG) (MCQEF) retreated 1.3%. Among the resource shares, losses for gold both in New York and in early Asian electronic trade helped send Evolution Mining Ltd. (AU:EVN) (CAHPF) down 1.9% and Kingsgate Consolidated Ltd. (AU:KCN) (KSKGF) off 4.5%, though Newcrest Mining Ltd. (AU:NCM) (NCMGF) held the drop to 0.4%. Oil prices managed a modest gain, however, resulting in a 0.2% rise for Oil Search Ltd. (AU:OSH) (OISHF) and Karoon Gas Australia Ltd. (AU:KAR) (KRNGF) , while Woodside Petroleum Ltd. (AU:WPL)

Top Airline Companies For 2015: Indonesia Transport & Infrastructure Tbk PT (IATA)

PT Indonesia Transport & Infrastructure Tbk, formerly PT Indonesia Air Transport Tbk, is an Indonesia-based air transport service provider. The Company provides air transportation, hiring and/or leasing aircrafts, repairs and maintenance of aircrafts and trading of aviation technical equipment and related spare parts. It also provides medical evacuation services, tourism and scheduled flight services to several routes in central and eastern Indonesia. The Company operates various types of fixed wing aircrafts and helicopters, such as EC 155 B1, AS 365 Dauphin N2 twin turbine helicopter, Beechcraft 1900D, ATR 42-300, ATR 42-500 and Fokker 50. Advisors' Opinion:

• [By Shereen El Gazzar]

  The forecast, from the International Air Transport Association (IATA), sees the Middle East and the Asia-Pacific region with the strongest international passenger growth, with a compound average growth rate of 6.3% and 5.7% respectively.

Will 1,100 Stores Closures Save RadioShack? Probably Not

It's been a tough few years for RadioShack, topped off with an ugly 2013.

The retailer announced fourth quarter and full year 2013 earnings today. The Fort Worth, TX-based company posted a $344 million operating loss for the year, and a same-store-sales drop of 19% for the fourth quarter. Not only that, RadioShack will be closing up to 1,100 stores across the country, and that may not be the end of store closings.

The dismal news is killing the company's stock. RadioShack shares are plunging more than 16% to about $2.26 this afternoon.

What's going on with RadioShack lately? The electronics retailer has long been challenged by e-commerce businesses like Amazon, but things have been particularly tough for RadioShack of late.

It may be that time is running out for the company. Last year it named Joseph C. Magnacca as its fourth CEO in three years. Magnacca was formerly a Walgreen Walgreen Co executive before joining RadioShack.

On the call with investors today, Magnacca said disappointing earnings were the result of poor foot traffic, fewer shopping days between Thanksgiving and Christmas and bad weather. Surely, those are reasons just about any retailer could cite, but RadioShack's quarter was particularly bad.

Magnacca was quick to point out that his turnaround plan for RadioShack, which he announced in July, will take time and that results will vary.

Here's a quick breakdown of his plan:

Will ‘The Sims 4’ Tip Over EA’s Cash Cow Franchise?

Electronic Arts (NASDAQ: EA  ) recently revealed a demo for The Sims 4, the latest chapter of the 14-year-old life simulation franchise, at E3. The eagerly anticipated title will be released for Microsoft (NASDAQ: MSFT  ) Windows on Sept. 2.

The Sims 4. Source: EA.

EA's demo revealed a greater degree of customization for characters, deeper personality traits, and a wider variety of interactions between characters than its predecessors. But on the other hand, The Sims 4 didn't look all that different from The Sims 3, which was released in 2009. The Sims 3 wasn't even a big step up from The Sims 2, which arrived nearly a decade ago.

In fact, the biggest evolution of the franchise occurred between the original game and its 2004 sequel, which made the transition from an isometric view to full 3D.

Yet despite the arguably incremental improvements between its main installments, The Sims remains one of the most popular video game franchises in the world, with global sales totaling over 175 million. Let's take a closer look at why The Sims has remained so popular over the years, and if EA can keep itself from tipping over this cash cow.

How The Sims redefined PC gaming
Back in 2000, Valve's shooter Half-Life, Activision Blizzard's (NASDAQ: ATVI  ) dungeon crawler Diablo II, and real-time strategy hit Starcraft defined PC gaming.

That's why The Sims was such a surprise hit when it arrived that year. It was an oddball life simulator, in which players customized avatars ("Sims") to live daily lives in fully customizable houses. Instead of killing things, players had to tend to their Sims' mundane needs, such as going to the bathroom, taking a shower, eating, and sleeping. Sims also needed to get jobs, exercise, and socialize to stay happy.

Unpredictable things could happen -- a Sim could abruptly die in a fire while cooking breakfast or be abducted by an alien while stargazing. It was an endless, kooky, virtual dollhouse game that played out differently every time.

The Sims (2000). Source: Maxis.

More importantly, it was a game that appealed to both genders. The Sims consistently ranks as one of the most popular games among women, who now account for nearly half of all gamers, according to the Entertainment Software Association.

The biz of The Sims
The business of The Sims consists of launching a base game followed by a parade of expansion and "stuff" packs. The base game gives gamers the foundation of the game -- the characters, the houses, the items, and the jobs. Expansion packs add new areas to visit, new characters, new jobs, and new abilities. "Stuff" packs add new in-game items for character and home customization.

As seen in the following chart, however, unlocking the "full" Sims experience of each title was actually a very costly affair:

Title (Year)	Number of expansion packs	Number of stuff packs
The Sims (2000)	7	0
The Sims 2 (2004)	8	10
The Sims 3 (2009)	11	9

Source: Sims.wikia.com.

For The Sims 3, expansion packs cost $20 to $30, and stuff packs cost around $20. Therefore, the grand total of the whole Sims 3 experience (excluding bundles) could easily top $500.

The Sims 3. Source: EA.

Recent surveys indicate that gamers expect between 12 to 16 new expansion packs for The Sims 4, and likely even more stuff packs -- which could make The Sims 4 one of the priciest single player games in history.

What's troubling about EA's strategy is that the it intentionally leaves content out of the base game to be added later. For example, The Sims 2 received a University expansion pack that allowed children to go to college. Instead of including that new feature in the base version of The Sims 3, EA released the feature again as an expansion pack. For The Sims 4, a handful of expansion packs have already been confirmed, once again including University.

It's the exact same story for other features like vacations, pets, and magic powers, which were all originally added as expansion packs for the first game.

In other words, EA sells a new base game as the foundation for its real money maker -- expansions and stuff packs -- for fans to rebuild their full Sims experience repeatedly for a hefty price.

How it could all go wrong
To address this negative perception, EA is rumored to be considering an annual subscription fee of $100 for access to all expansion packs.

But considering that the average Sims title lasts for four to five years between installments, it would be nearly identical to the $500 price tag for The Sims 3. In fact, EA would profit more from a $100 subscription, since only hardcore Sims fans purchased every single expansion pack in the past.

Although EA has not formally announced subscription plans yet, it would be terrible move to turn a single player game into a subscription-based one. Giving gamers the choice of either playing a base game online or paying a subscription fee to "enhance" the experience with downloadable content simply feels like a way to cripple the customer's ability to pick the packs that they like.

There's also evidence that the whopping cost of The Sims has caused the game to be pirated in record numbers. According to Torrentfreak, The Sims 2 was the second most pirated game of 2008. The Sims 3 is the sixth most pirated game of all time.

The Foolish takeaway
Will Wright, the legendary creator of The Sims, SimCity, and Spore, left EA in 2009. With The Sims, Wright left behind more than a blockbuster franchise for EA -- he carved out a new genre of "life simulators" that The Sims now comfortably monopolizes.

However, EA needs to find a way to make The Sims business model work beyond merely selling a new base game and piling on pricey expansions. It needs to convince gamers that The Sims 4 is really a major step up from The Sims 3 -- otherwise, the entire foundation will crumble and kill off its cash cow.

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Why Acacia Research (ACTG) Is Down Today

NEW YORK (TheStreet) -- Acacia Research  (ACTG) fell 6.31% on the session Friday to $13.96, down 94 cents from its previous close of $14.90, after the company, which purchases patents and licenses, reported fourth-quarter earnings that came up short of analysts' expectations.

The company reported a loss of 22 cents a share, which was 37 cents off of the income of 15 cents a share expected by analysts polled by Thomson Reuters. Acacia also reported revenue of $15.07 million, which was well short of the consensus estimate of $25.29 million.

The stock had a volume of 4,597,081, nearly seven times its average of 668,923. It hit a high of $14.51 and a low of $13.25 for the day. The stock holds a one-year high of $32.59 and a one-year low of $12.23.

Must Read: Acacia Research Reports Fourth Quarter And Year End Financial Results And Announces Payment Of Quarterly Dividend TheStreet Ratings team rates ACACIA RESEARCH CORP as a "sell" with a ratings score of D+. TheStreet Ratings Team has this to say about their recommendation: "We rate ACACIA RESEARCH CORP (ACTG) a SELL. This is driven by several weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, weak operating cash flow, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share." Highlights from the analysis by TheStreet Ratings Team goes as follows: The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Professional Services industry. The net income has significantly decreased by 137.4% when compared to the same quarter one year ago, falling from -$6.62 million to -$15.71 million. Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. Compared to other companies in the Professional Services industry and the overall market, ACACIA RESEARCH CORP's return on equity significantly trails that of both the industry average and the S&P 500. Net operating cash flow has significantly decreased to -$22.92 million or 435.86% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower. Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 50.08%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 135.71% compared to the year-earlier quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now. ACACIA RESEARCH CORP has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, ACACIA RESEARCH CORP increased its bottom line by earning $1.28 versus $0.54 in the prior year. For the next year, the market is expecting a contraction of 33.6% in earnings ($0.85 versus $1.28). You can view the full analysis from the report here: ACTG Ratings Report

Stock quotes in this article: ACTG 

Scarred Reputations Costing Financial Firms Billions

Six years after the financial crisis, financial services firms are still burdened by reputational and customer service issues, according to a survey released Tuesday by the communications firm Makovsky.

Eighty-one percent of communications, investor relations and marketing executives surveyed said the financial crisis continued to strongly affect stakeholder perceptions of their firms.

The study showed that this negative perception was taking an even bigger toll on sales, as the firms interviewed reported an average business loss of 27% — equaling billions of dollars — in the last two years as reputational and customer service issues persisted.

This average loss was significantly higher in the past 12 months than reported in the 2013 study, according to Makovsky.

“The financial crisis has left scars and those scars may be permanent,” Makovsky executive vice president Scott Tangney said in a statement.

Firms in the survey complained of constant reputation and customer satisfaction issues related to trust, regulation, products, liquidity and capital, financial performance and compensation, Tangney said.

“The standing of many has been diminished, with nearly half of executives telling us that the crisis fallout made their firm competitively vulnerable, allowing their closest or direct competitors to gain an advantage.”

For the study, Ebiquity, a research firm, in May interviewed 225 executives and managers responsible for the management and supervision of communications, investor relations or marketing at banks, brokerages, asset management firms, insurance companies, real estate companies, credit card companies, mortgage lenders, venture capital firms, credit unions and financial technology firms.

The study found that improving reputation had become a chief priority at financial services firms, especially as negative perception was having a greater effect on revenue loss.

Tangney said it would take up to five more years to restore firms’ reputations to pre-crisis levels.

Researchers asked executives at financial firms to rank the issues that had negatively affected their organizations over the last 12 months:

The importance of each of these issues had increased compared with last year’s results, Makovsky said.

In addition, 52% of the firms surveyed said financial performance and excessive bonuses had dragged on their reputation in the past 12 months.  And 50% reported that customer dissatisfaction and corporate governance were negatively charged issues for their firm.

Respondents said their greatest reputational challenges in the next 12 months would be:

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