Shares in American Eagle Outfitters (AEO) were selling for 4.56% more on Tuesday than they did on Monday after Jay L. Schottenstein, AEO's executive chairman and interim CEO, purchased nearly 150,000 shares in the company on Monday. It is Schottenstein's second investment in AEO this year. In Monday's transaction, Schottenstein acquired 148,942 shares for $14.13 a share; ultimately the purchase was worth $2,104,550. His earlier purchase was for $6.42 million when shares sold at a price of $12.84 each. The stock was selling for $14.84 per share at the end of trading Tuesday. Last week, GuruFocus reported that AEO had been struggling to find its market niche in a highly competitive field against the likes of Urban Outfitters (URBN) and G-III Apparel (GIII). G-III, GuruFocus wrote last month, is in position to deliver long-term results for investors. With no debt to speak of, AEO's low debt-to-equity ratio could be very appealing to investors. GuruFocus rates the company's financial strength an impressive 8/10. 
However, return on equity has gone down dramatically since the same time period in 2013, which could make investors pause before acquiring AEO stock. 
At the end of June, gurus Ray Dalio (Trades, Portfolio) and Richard Snow (Trades, Portfolio) added to their positions in AEO while Chuck Royce (Trades, Portfolio), John Hussman (Trades, Portfolio) and Jim Simons (Trades, Portfolio) reduced theirs and Kyle Bass (Trades, Portfolio) sold out of his holdings. Based in Pittsburgh, Pennsylvania, AEO designs and sells its own line of casual clothing for young adults, primarily in the 15-25 age range. It was founded as a subsidiary of Retail Ventures in 1977. Also check out: Chuck Royce Undervalued Stocks Chuck Royce Top Growth Companies Chuck Royce High Yield stocks, and Stocks that Chuck Royce keeps buying Jim Simons Undervalued Stocks Jim Simons Top Growth Companies Jim Simons High Yield stocks, and Stocks that Jim Simons keeps buyingAbout the author:David GoodloeI'm a journalist by training. I grew up in Arkansas and earned my B.A. at the University of Arkansas. I earned my master's degree at the University of North Texas. My background includes stints at newspapers in Arkansas and Texas and teaching news writing and news editing to students at the University of Oklahoma and Richland College here in Dallas. I'm the editorial manager at GuruFocus. Currently 0.00/51234
 How GM will pay its victims NEW YORK (CNNMoney) Ken Feinberg, the attorney overseeing a compensation fund for victims of GM cars, has so far linked 19 deaths to a serious flaw with the automaker's ignition switches. That's more than the 13 deaths General Motors (GM) has said were tied to the problem, which went unreported for a decade, years after company engineers discovered it. Overall, Feinberg has received 125 claims for deaths and 320 for injuries in the five weeks he has been up and running. Of those, he has found 31 eligible for compensation. Most of the remainder are still under review. Feinberg said he has denied fewer than a dozen claims. "Already there are more deaths than GM said from day one," Feinberg told CNNMoney. "Of course there will be additional eligible deaths; how many is pure speculation, but there will be eligible death claims." The families of victims who died can collect $1 million, plus an estimate of the victim's future earning potential and $300,000 each for a surviving spouse and dependents. In addition to the 19 deaths, Feinberg has identified four people who suffered severe injury such as quadriplegia, paraplegia, double amputation, brain damage or serious burns. He has identified another eight with less serious injuries. Compensation for those who were injured varies from $20,000 for the least serious injuries to $500,000 for victims who spent more than a month in the hospital. Most of the claims involve young drivers -- in their teens and early 20s -- driving their first car, Feinberg said. Why the discrepancy between GM's numbers and Feinberg's findings? "GM had its engineers determine, with certainty, that there were 13 ! deaths caused by the ignition switch defect," Feinberg said. "The program we are administering is much easier to satisfy." Under the terms of the fund, claimants need to prove the ignition switch was a "proximate cause" of the accident. "We're applying a legal standard," he said. "The 13 was an engineering conclusion." GM's initial death count included only head-on crashes where the front airbag did not properly deploy and victims were in the vehicles' front seats. "We have previously said that Ken Feinberg and his team will independently determine the final number of eligible individuals, so we accept their determinations for the compensation program," GM spokesman Dave Roman said Monday. "What is most important is that we are doing the right thing for those who lost loved ones and for those who suffered physical injury." It is too early to say how much the fund would pay out, Feinberg said, in part because the determination of eligibility does not mean a victim or family has accepted his offer. There is no cap on how much GM may have to pay victims through the fund. Feinberg said he is "confident the great majority of claimants will accept the compensation that is offered by this program." Feinberg's office is receiving roughly 100 claims per week. He says he has seen a fair number of claims "where the family doesn't agree on who should get the money." The process continues: Feinberg will continue accepting claims until the end of the year. He requires extensive documentation, including a police report, vehicle computer data, financial records (to calculate earning potential) and health care records or a death certificate. The review process will likely take until the middle of 2015. Those who accept compensation must agree to not sue GM, and some families have said they will forgo the Feinberg process and seek their day in court.  Feinberg defends GM victim pay plan Some owners of vehicles that are not eligible for the program have said they want to be included. Feinberg said it is up to GM, not him, to decide what models and problems can be considered by the compensation program. The company's 2009 bankruptcy provides a liability shield from many lawsuits. A federal judge is deciding how the shield will apply to ignition switch claims. Feinberg was hired by GM to oversee the fund but has said that his eligibility decisions are not influenced by GM management. He has previously overseen funds for victims of 9/11, the Gulf oil spill and the Boston Marathon bombing. GM knew of flaw for years: GM engineers first knew of the ignition switch flaw a decade ago, but the company publicly acknowledged it for the first time in February. It has now recalled 2.6 million cars related to the problem. Drivers of certain small Chevrolet, Pontiac and Saturn cars can inadvertently bump the ignition switch out of run, disabling the power steering, anti-lock braking, and airbags. Greater scrutiny to GM's handling of vehicle issues led to a stream of recalls; the company has issued 65 this year for a total of nearly 30 million vehicles.
After the closing bell on Tuesday, La-Z-Boy Incorporated (LZB ) reported its fourth quarter earnings, posting slightly higher revenues and EPS than last year’s Q4 figures.
LZB’s Earnings in Brief La-Z-Boy reported fourth quarter revenues of $353.3 million, up from last year’s Q4 revenues of $345.8 million. Net income for the quarter was down to $12.24 million compared to last year’s Q4 figure of $18.31 million. The company's adjusted EPS came in at 33 cents, which is up from last year’s Q4 EPS of 30 cents. LZB met analysts’ EPS expectations of 33 cents, but revenue missed the expected $369.2 million. Same-store sales for the quarter were down 0.9% for quarter, compared to 11.2% growth in last year’s Q4. CEO Commentary LZB chairman, president and CEO Kurt L. Darrow had the following comments: “Overall, we are pleased with our results for fiscal 2014 full year. With respect to our performance, we increased sales, operating profit, cash flow and the dividend while strengthening our balance sheet. Additionally, we recorded a 6% increase in written same-store sales for the La-Z-Boy Furniture Galleries® network of stores, while solidifying one of the largest growth initiatives in the company’s history with our 4-4-5 store strategy. We improved the performance of both our wholesale upholstery and retail segments, demonstrating our integrated retail model is delivering results. Moving forward, we believe the initiatives we have established throughout our wholesale and retail operations, coupled with the financial strength and flexibility to invest in our business, will position us for continuing, long-term profitable growth.” LZB’s Dividend La-Z-Boy paid its last dividend on June 10, and we expect the company to declare its next quarterly dividend of 6 cents in the coming months. Stock Performance LZB stock was down $2.34, or 9.42%, in after hours trading. YTD, the stock is down 21.7% LZB Dividend Snapshot As of Market Close on June 17, 2014  Click here to see the complete history of LZB dividends.
NEW YORK (TheStreet) -- At least the bulls salvaged a win on Friday after three days of market selloff. The DJIA gained 44.50 points to close at 16491.31 while the S&P 500 gained 7 to close at 1877.86. Even the Nasdaq rose 21.29 at the close to finish at 4090.59. The Russell 2000, the big loser this year so far, finished up 6.92 at 1102.91. So, are the indexes back and ready for more upside gains next week? Not so fast. Friday saw nothing more than a short-term oversold bounce. The trading volume on Friday was not bad but substantially less than Thursday's down volume. Most of the Friday's gains were most noticeable in the momentum technology stocks. That is the sector where the short hedge funds have been hiding out and covering their short positions. Keep in mind that the majority of those momentum stocks are in Trend Bearish territory. Apple (AAPL), Netflix (NFLX), Zillow (Z) and Amazon (AMZN) all closed to the upside. The volume was on the light side for those stocks. Trading next week should be interesting. Of the four major indexes, not one has an oversold condition. If the momentum chasers had not turned this market green on Friday, Monday could have shown an oversold signal with a lower open. However, that is not the case so I am cautious and looking for more downside early next week to give that oversold signal that I am looking for. Another sector that has entered into Trend Bearish territory is the SPDRs Select Sector Financial ETF (XLF). This is not surprising because of my "Growth Slowing" view of the economy. As a matter of fact, with the 10-year bond yield bearish (and now being confirmed by the XLF) along with inflation accelerating, it is easy to see why we are in a Growth Slowing economy. So, stay cautious and focus on these macro indicators to understand where this market is and where it may be headed. The Russell 2000 is down almost 10% from its March highs. The Nasdaq is down 6% from its March high. Pay attention and forget about the old Wall Street pundits. The game has changed. The old indicators are not as useful any longer. On Friday I covered my Yandex (YNDX) short on red in early trading for a nice gain and also sold my Exco Resources (XCO) long position for a nice gain. I started a new long position in a small-cap stock Female Health Company (FHCO). This was flagged with an extraordinarily oversold signal. All of my stock trades are timestamped at www.strategicstocktrades.com. A 93.71% success rate. At the time of publication, the author was long FHCO. This article represents the opinion of a contributor and not necessarily that of TheStreet or its editorial staff. >>Read more: Marijuana Stock Warning From the SEC >>Read more: Yum! Brands Is Cheap and Delicious Stock quotes in this article: AAPL, NFLX, Z, AMZN, XLF, YNDX, XCO, FHCO
 Demand for inflation linked bond securities and various types of inflation protection are on the increase, as investor expectations of US inflation hit all-time highs.
Since the beginning of the year, a steady stream of economic news has sharpened investor concerns about the threat of inflation. This data includes increased wage growth, a rebound in the labor market and higher energy prices. These economic metrics indicate growth; they also mean that as the economy improves companies will more easily pass on increased costs.
In fact, investor expectations for inflation over the next five years, as measured by comparing yields on Treasury Inflation-Protected Securities (TIPS) and nominal Treasury bonds, known as the break-even, have hit a new high in their long-term average, at 1.97, and a daily market high on March 13 of 1.86 (See Chart A), levels not seen in a year. Chart A: US Inflation Expectations are on the Rise 
Created with Y Charts
Furthermore, the intraday price on five-year inflation expectations rose briefly above 2 percent in early March for the first time in seven months, after a report showed the economy added more jobs than forecast in February, according to Bloomberg data.
Break-even inflation is the difference between the nominal yield on a fixed-rate investment and the real yield (fixed spread) on an inflation-linked investment of similar maturity and credit quality. If inflation averages more than the break-even, the inflation-linked investment will outperform the fixed-rate. Conversely, if inflation averages below the break-even, the fixed-rate will outperform the inflation-linked.
Meanwhile, the high demand for TIPS indicates investors believe the market is underpricing future inflation. In early March, funds ! that invest in TIPS took in a net of $359 million, the largest weekly inflow since May 2012, according to EPFR Global. This is the first gain since last April, when Federal Reserve Chair Ben Bernanke's stimulus tapering caused an initial sell-off as investors repositioned their portfolios out of a fear that the economy was weak.
The Data Driving Expectations
Since the beginning of the year, several positive economic reports have bolstered the Federal Reserve's contention that the economy has been improving and no longer needs stimulus. However, the improvement in economic growth also suggests the central bank's efforts have been successful in spurring inflation to achieve its stated goal of reduced unemployment.
Below, we take a look at the numbers behind energy prices, unemployment, wage gains, and consumer confidence to more closely discern the underlying fundamentals that are driving investors’ new inflation expectations.
Energy Prices on the Rise
The single biggest new development that has prompted investors to seek inflation protection this year has been the steady increase in energy prices.
This is a state of affairs that will likely continue, according to Robert Rapier, chief investment strategist at Investing Daily’s The Energy Strategist, our sister publication. Rapier argues that natural gas prices will remain at elevated levels after demand increased for natural gas as a result of the arctic weather that blasted the Northeast and Mid-Atlantic states.
Rapier makes the case for why oil has been stubbornly high and will continue:
“In a nutshell, it's the demand side of the equation keeping pace with the growing supply. Over the past decade, demand in the US and the EU fell, but this was more than compensated for by growing demand in developing countries. This kept the price of oil high, despite supply/demand fundamentals that in isolated countries would have encouraged lower prices.”
But the world's ! oil marke! ts aren't local. And now demand in the US is starting to regain strength, recently rising to the highest level since 2008, he argues.
The International Energy Agency has estimated that global demand for oil will increase this year by 1.2 million barrels a day. For perspective, over the past five years the world has increased oil production by nearly 3.9 million barrels (2 million of which was from the US) — an average increase each year of 770,000 barrels per year. “I believe the long-term direction for both commodities [natural gas and oil] is inevitably higher prices,” Rapier concludes.
Unemployment and Wage Gains
As my Inflation Survival Letter colleague Benjamin Shepherd identified last week in his analysis entitled, “The Mixed Picture on Jobs,” the economy added 175,000 new jobs last month and a more-than-expected 129,000 in December, but the unemployment rate actually ticked up from 6.6 percent in January to 6.7 percent in February.
To explain this ostensible discrepancy, Shepherd points to analysis by HSBC as to how inflation becomes increasingly unpredictable after the official unemployment rate falls below 6.5 percent, with inflation about as likely to go up as to go down.
We have long contended (and Federal Reserve Chair Janet Yellen has acknowledged) that one of the challenges of the central bank is identifying the number of unemployed to gauge its monetary policy. The headline number, many have argued, does not seem to be representative of what is going on in the real economy, given the high numbers of long-term unemployed that are failing to be counted. This oversight increases the chances that the Federal Reserve will fail to time its stimulus and contain inflation.
Responding to the higher rate of unemployment that was reported, Vice Chair Stanley Fischer, the nominee to be Federal Reserve Chair Janet Yellen's top lieutenant, asserted on March 13 that the US economy still needs unprecedented accommodation amid high jo! blessness! .
"At 6.7 percent, the unemployment rate remains too high," Fischer said in remarks prepared for his confirmation hearing before the Senate Banking Committee.
The number of people who applied for US unemployment benefits fell by 9,000 to 315,000 in the week ended March 8, marking the lowest level since the end of November, the US Labor Department reported. Economists surveyed by the Wall Street Journal’s MarketWatch expected claims to total 330,000 on a seasonally adjusted basis. The average of new claims over the past month, a more reliable gauge than the volatile weekly number, declined by 6,250 to 330,500. That’s the lowest level since early December and a reminder that, though sluggish, the economy is improving.
Meanwhile, between discussions of raising the minimum wage and new indications of wage growth, many investors are watching these developments closely and forming new inflation expectations.
The US Bureau of Labor Statistics reported average weekly earnings rose 0.3 percent in March from a year ago, using the data from the consumer prices report to adjust for inflation. That's a static growth rate but wages overall are up since the recession’s start. They’re down from the end of 2008, broadly flat over the past decade, and on an inflation-adjusted basis, wages peaked in 1973, fully 40 years ago. Regardless of these fluctuations, the wage trend points to continued economic recovery.
Consumer Spending on the Rise
Consumer confidence rose last week to the second-highest level since August, as Americans grew more upbeat about the economy. The Bloomberg Consumer Comfort Index climbed to minus 27.6 in the period that ended March 9 from minus 28.5 the prior week. The advance was the fifth straight and the reading was second only to the minus 27.4 in the week ended Dec. 22, which was the strongest since mid-August.
Consumers surveyed were more optimistic about the economy than at any time in the last seven months, reflect! ing stock! s near record highs and a labor market that's showing signs of improving, according to Bloomberg. At the same time, “discussions about raising the minimum wage are probably helping lift spirits at the bottom of the income scale,” the Bloomberg report surmised. This improvement in consumer confidence was also confirmed by the widely watched University of Michigan consumer sentiment survey.
The Thomson Reuters/University of Michigan final index of sentiment rose to 81.6 last month from 81.2 in January. The median estimate in a Bloomberg survey of economists called for the measure to hold at its preliminary reading of 81.2. Sustained sentiment indicates spending may pick up after bad winter weather across much of the US caused some Americans to stay close to home rather than shop at the mall.
Furthermore, the Michigan sentiment survey's index of expectations six months from now increased to a six-month high of 72.7 from 71.2 last month. The preliminary reading was 73. The gauge of current conditions, which measures Americans' view of their personal finances, dropped to 95.4 in February from 96.8 a month earlier. The initial reading for February was 94.
Another report from the US Commerce Department in late February showed the economy expanded in the fourth quarter at a 2.4 percent annual rate, slower than initially estimated.
The upshot: The seeds have been planted for higher inflation and you should get ready now.
After the global market's overall downtrend last week, MoneyShow's Jim Jubak questions whether the response will be a sell off or a panic, and warns of several ramifications for you to watch out for. What's ahead, sell off or panic? After Friday's action, I think we can take "buy on the dip" off the list of alternatives. Everything was down Friday—with the surprising exception of the Shanghai Composite index (IND:SHCOMP), which closed up 0.6% overnight. At the close, the Standard & Poor's 500 index (SPX) was down 2.09% and the Dow Jones Industrial Average (INDU) was off 1.94%. Mexico was 1.33% lower and Brazilian stocks were down 1.1% in Sao Paulo. In Europe, the German DAX (DAX) had tumbled 2.48% by the close of that market; in Milan, Italian stocks were down 2.30%; and in Spain, the IBEX 35 index (IBEX) was lower by 3.64%. In Asia, Hong Kong's Hang Seng (HSI) closed down 1.35% and Japan's Nikkei 225 (NKY) was off by 1.94%. Among other emerging markets, Turkey's BIST 30 index (IND:XU030) was lower by 1.74% and South Africa had dropped by 1.36%. What's going on? I think we're seeing a renewal of the emerging market currency sell off that we saw repeatedly in 2013, on rumors—and then on the actual decision—that the US Federal Reserve would begin to taper off its $85 billion a month in purchases of US Treasuries and mortgage-backed securities. That taper, it was widely concluded, would strengthen the dollar and increase the attractiveness of dollar-denominated assets as US interest rates rose. That hit hard at emerging market currencies, especially those of countries such as Brazil, Turkey, and India that rely on overseas cash inflows to balance persistent current account deficits. Add in recent data that argues that China's economic growth is slowing from 7.8% in the third quarter and 7.7% in the fourth quarter, to something below 7% by the end of 2014, according to pessimistic forecasts. Slower growth in China means slower growth for economies—such as Brazil and Australia—that depend on exports to China. Slower growth in those economies will turn into slower growth for the global economy as a whole, it is feared. And finally, in the last few days, we've ratcheted up both those currency and China growth fears on news that 1) Argentina would allow the peso to plunge without central bank intervention, 2) Turkey's central bank had intervened in the markets but had not been able to stem the fall of the Turkish lira, 3) Brazil's government budget was deteriorating so quickly that the country might face a credit rating downgrade this year, and 4) at least some of the trust investments in China's shadow banking system looked unlikely to recoup the money they had lent to companies and local governments. I take all these fears seriously and the fundamentals, in some cases, look rather dire. Page 1 | Page 2 | Page 3 | Next Page
Today's (Wednesday) release of the December FOMC meeting minutes makes clear one thing: the U.S. Federal Reserve does not have a plan for the course of the stimulus reduction it announced last month. On Dec. 18, the date of the last FOMC meeting, Fed officials announced a winding down of its $85 billion in monthly bond purchases per the quantitative easing (QE) stimulus program. Beginning in January, the Fed was to taper its bond-buying program by $10 billion per month. The Fed was to reduce its purchases of long-term Treasury bonds from $45 billion a month to $40 billion, and mortgage-backed securities from $40 billion a month to $35 billion. But investors looking for a predictable plan for the pace of asset-purchase reductions will have to keep guessing - the FOMC meeting minutes reveal the Fed itself doesn't have a clue. "I like that the market has gone up during the stimulus, like anyone else, but let's not confuse that with economic health," Money Morning Chief Financial Strategist Keith Fitz-Gerald weighed in. "Fundamentally, there are significant cracks in the system, and I haven't heard one word of how the Fed will get itself out of this. There is no 'Plan B', and they're making it up as they go along." What Today's FOMC Meeting Minutes Tell Us Indeed, the December FOMC meeting minutes reveal Fed officials are uncertain about the future of the stimulus and how it should be structured, nor do they have any contingency plan should it falter. All we know is that the Fed will likely cut the purchases "in further measured steps at future meetings," assuming the economy continues to advance. The markets reflected the feeling of uncertainty today, both before and after the minutes' release. Stocks were mixed this morning amid swirling fears that the Fed might choose to rein in its stimulus more aggressively than it did in December. Just an hour before the 2 p.m. FOMC minutes' release, the Dow Jones Industrial Average was down 0.47% to 16,452.56, while the Nasdaq Composite Index rose 0.28% to 4,164.73. Standard & Poor's 500 Index remained flat at 1,836.88 (a 0.05% decline). The markets had a muted reaction after the minutes' release, holding on to earlier losses with little change. In light of today's FOMC info, investors should employ this course of action to play the Fed... The Fed and Investing in 2014 The Fed doesn't have a plan of action, nor does it have a backup plan of action. And the government is out of control. That means two things for investors. First, whether you like the Fed's actions or not, you should be along for the ride. "I said this in 2009, and it's just as true today: if the markets are going to be manipulated, you want to be with the guy who is doing the manipulating," Fitz-Gerald said. The secret is finding companies that have expanding earnings growth and strong balance sheets and are leveraged against interest rate risk. Second, you have to have a ready-for-anything plan at all times. "We talk extensively about the need for trailing stops, use of specialized inverse funds," Fitz-Gerald said of his subscriber-based investing service The Money Map Report. "We act when the market gives us important buying opportunities." As long as the Fed is pumping up market gains, investors should be there to take advantage. "You've got to grab the bull by the horns - you can't afford not to play," Fitz-Gerald said. The next FOMC meeting takes place Jan. 28-29. Before then, investors can look to Friday's U.S. Labor Department December jobs report for some economic clues. And keep in mind that starting out 2014 focusing on these three key numbers is the best way to compound your 2013 gains ...
Crude futures are having the best day in almost two months, rallying $1.50 per barrel to $95.40. After building a base in lower 93s, the contract cleared the major resistance at 95.20 and reached 95.63. Since making the high, the contract has pulled back to 95.16 before resuming is rally. Posted-In: Commodities Technicals Markets Trading Ideas (c) 2013 Benzinga.com. Benzinga does not provide investment advice. All rights reserved. Around the Web, We're Loving... Come Learn 6 Proven Trading Strategies at Our Holliday Trading Summit Lightspeed Trading Presents: Intra-day and Swing Trading the First Two Hours of the Market Rumsfeld: Denial of Benefits to Fallen Soldiers' Families 'Inexcusable' Come See How the Pro's Trade in this Exclusive Webinar Facebook, Baidu Lead Big Caps Beating Shutdown What Should You Know About AMZN? Most Popular Home Depot Versus Lowe's: What Three Analysts Are Saying New Battery Technologies Could Dramatically Change Electronics Market Five Star Stock Watch: Tesla Motors, Inc. Voxeljet Shares Respond After Sour Citron Research Report Sony's $399 PlayStation 4 Costs $381 To Produce Apple Trapped in Narrow Range Related Articles (USO) Crude Futures Post Strong Gains Crude Tests Major Support Again Crude Declines Crude Finding Support Under 94 Support in Crude Gives Way Top Performing Energy ETFs (XES, IEZ, GEOS, SLB, HAL) View the discussion thread. Partner Network
After a report that Dick's Sporting Goods (DKS) is considering going private sent the stock higher Thursday, the sporting goods retailer got nailed today by a pair of downgrades. The problem? Valuation Baird cut the stock to neutral from outperform, arguing that its move into the mid $50s “has created a more balanced risk/reward profile.” Susquehanna, meanwhile, cut the stock to neutral from positive. As analyst Christopher Svezia wrote, "We continue to see some upside given manageable near-term (4Q) expectations and potential for healthy earnings recovery in FY15, but ultimately not enough to meet our +15% threshold.” The stock fell 1.7% to $53.75 in recent trading. CNBC on Thursday reported unusual options trading in Dick’s stock before a Reuters report surfaced that the retailer is holding early-stage conversations with a handful of buyout firms about going private. Baird analysts addressed the issue in today's note: With prospects of a go-private transaction now officially part of the story, downside risk appears somewhat limited in the near term. That said, the stock's current valuation (>9x FY14 EBITDA) is already entering levels consistent with recent takeout activity, and an improvement in fundamentals across early-FY15 appears somewhat discounted. While our model can get an LBO value north of $60, it’s not certain any transaction will occur. As a result, the stock’s risk/reward profile seems more balanced versus what we envisioned last summer. Not everyone shares those concerns. Jim Chartier, an analyst at Monness Crespi Hardt, maintained a buy rating and raised his price target to $60 from $56. As he explains: The stock underperformed in 2014 as weakness in the golf and hunting categories resulted in lower than anticipated sales and earnings. In addition, investors have been concerned about the company's difficult same-store sales comparison in 4QFY14. We believe the potential for a private equity sale raises the floor in the stock in the near term. And, we expect easy sales and margin comparisons in 1HFY15 will attract investors if the company reports in line or better 4QFY14 results. Accordingly, we believe a higher valuation multiple is appropriate. The stock is trading at 17.6x our ntm EPS estimate of $3.11, in line with its three year average valuation of 17.7x. We are raising our price target to $60 (from $56) based on 18.5x our FY15 EPS estimate of $3.25.
Stocks have ticked lower this morning following last week’s Fed-induced turbulence.  EPA/JUSTIN LANE Dow Jones Industrials Average futures have dropped 22 points, while S&P 500 futures have fallen 3.9 points. Nasdaq 100 futures have declined 4.25 points. The New York Post reported that Carl Icahn can’t sell his stake Herbalife (HLF) until Feb 28 unless the stock trades above $73 for five consecutive days. Last week, it traded that high for three straight days before dropping 5.1% on Friday. Sealed Air (SEE) has fallen 0.7% to $28.35 after the food-safety company was downgraded to Equal Weight from Overweight at Barclays. Towers Watson (TW) has dropped 0.5% to $102.49 after it was cut to Neutral from Overweight at JPMorgan. It was also upgraded to Buy from Hold at Deutsche Bank. Michael Kors Holdings (KORS) has fallen 1.3% to $75.01 after it was downgraded to Hold from Buy at Jefferies. Walgreen (WAG) has gained 1.2% to $56.20 after the drug store was upgraded to Overweight from Equal Weight at Morgan Stanley.
The issue, which was launched on January 9, closed on February 7. The issue size was Rs 750 crore with an option to retain over-subscription up to Rs 5,000 crore. "We have done well. The issue was oversubscribed by about three times. The maximum amount was raised from retail investors," HUDCO Chairman and Managing Director V. P. Baligar told PTI. The company has raised Rs 1,402 crore from retail investors, of which Rs 801 crore came from retail investors investing up to Rs 10 lakh and the remaining Rs 601 crore from high-net worth individuals (HNIs), he added. "We have raised more funds from retail investors than other tax-free bonds public issues launched recently," Baligar said. Of the total 20,881 investors that participated in this issue, he said 20,481 were retail investors and 241 HNIs. For retail investors, HUDCO offered a higher coupon rate of 8.01 per cent per annum for 15 years maturity period and 7.84 per cent for 10 years. An investment up to Rs 10 lakh qualifies under the retail category. Asked about further fund raising plans, Baligar said: "We have been allowed to raise up to Rs 5,000 crore by the Finance Ministry. We have already garnered Rs 2,216 crore and we are considering raising the balance before this fiscal". HUDCO, a mini-ratna firm, is a financial institution that provides long-term finance for housing and urban infrastructure projects. The company posted a net profit of Rs 630.33 crore over a gross income of Rs 2,778.63 crore in 2011-12 fiscal. Baligar said the company would achieve the sanctioning and disbursal targets for this fiscal at Rs 22,000 crore and over Rs 6,000 crore, respectively. Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
LONDON -- J. Sainsbury (LSE: SBRY ) , the U.K.'s third-largest grocer, has confirmed rumors that it is looking to buy out Lloyds Banking Group's (LSE: LLOY ) 50% stake in Sainsbury's Bank and take full control of the operations. Although Sainsbury's beat larger rival Tesco (LSE: TSCO ) in starting up its banking operations, Tesco took full ownership of Tesco Bank nearly five years ago when it paid 950 million pounds to buy out RBS' 50% stake. The right time for a move
This is good news for Lloyds shareholders, as it should provide a couple hundred million pounds of fresh capital as the bank attempts to clean up its balance sheet and focus on its core operations. The move also makes sense from Sainsbury's standpoint because the grocery and retail market in the U.K. is rather mature and, although the grocer has been making headway in winning market share recently, growth is slow in coming. If the company plans to grow much more, it will need to expand its sources of revenue. Sainsbury's Bank offers this opportunity and, with an estate of 576 supermarkets and 487 convenience stores, there are plenty of ready-to-serve distribution points -- banks call them branches -- already in existence. Additionally, and like Tesco's Clubcard, Sainsbury's Nectar card provides it with a shedload of information on its customers shopping habits and therefore insight into their economic well-being and ability to repay loans. These are nice advantages over a bank starting from scratch. The move into banking also comes as the government is pushing for more competition in the industry and consumers have lost faith in their existing banking options. No express lane for success
Of course, it isn't a no-brainer -- it took until the middle of last year before Tesco was able to get its banking platform fully up and running, which delayed Tesco Bank's ability to offer basic banking services like mortgages. We will have to see how the hand-off from Lloyd's to Sainsbury's goes. In addition, outside of their self-generated problems, it isn't a great time for the banking sector as the health of banks is tied closely to the health of the economy. Traditional banks like Lloyds have been suffering from low interest rates and competition for deposits, which has limited the profitability of even their supposedly healthier core operations. Throwing more competition into the market may provide consumers with better access to financing and customer service, but isn't going to ease these pricing pressures for the banks. Sainsbury's history in retail makes it quite familiar with trying to differentiate itself in an industry of heavy pricing competition, so perhaps it will be able to teach the incumbents a thing or two about luring away customers. Shareholders definitely hope so as a successful venture into banking could provide a nice growth avenue for the company, but a botched run could be a costly distraction to a management team currently fighting furiously to sustain its recent wins in the grocery market. Is taking full control of Sainsbury's Bank an attractive enough move for you to buy shares in J. Sainsbury? If not, you might be interested in these other buying opportunities: This exclusive wealth report reviews five particularly attractive possibilities. Just click here for the report -- it's free. link
 Lester Lefkowitz Whether you realize it or not, solar energy is becoming a more and more important part of our energy future. In 2013, 29 percent of new electricity-generating capacity in the U.S. was solar energy, and so far in 2014, 36 percent of new capacity is solar. Falling costs and improving technology will drive wider adoption, and 2015 could be a tipping point, bringing the solar industry to new parts of the country. The Year Solar Caught On in the U.S. 2014 has been the start of consumers and utilities alike understanding the positive impact solar can make. GTM Research expects about 6.5 GW of solar energy to be installed in the U.S. in 2014, enough to power nearly 1.1 million homes. But over half of those installations fall in a relatively small area in California and Arizona, so this isn't a nationwide trend -- yet. You can see below that 10 states (not including Hawaii, where solar has long been cost-competitive) are now seeing residential solar systems cost-competitive with the grid, and by 2017 the estimated number jumps to 28 states. In 2015, a growing infrastructure from solar installers will bring solar to new states, expanding the industry's reach.  Union of Concerned Scientists Expansion Plans Kicking into High Gear The solar industry knows that more states are seeing competitive prices and is expanding quickly to fill the need, especially in the residential market. SolarCity (SCTY) and Vivint Solar (VSLR) install more than half of the residential solar systems installed in the U.S. today, and they both have big expansion plans in 2015. SolarCity expects to grow from 168,000 customers in September 2014 to over 1 million customers by mid-2018. As the company showed in a recent presentation, its addressable market grows exponentially as it cuts costs. SolarCity's costs today, including sales and general costs, are $2.90 per watt, down 26 percent from just two years ago. If costs continue to fall at anywhere near that rate, the company should be able to keep growing.  SolarCity Vivint Solar was founded just three years ago, but it's already grown into the second-largest solar installer in the country, with operations in seven states. Next year, it plans to open another 20 new sales and operations offices, growing beyond a high concentration in Massachusetts, New Jersey, and New York. States to watch in the residential solar market next year include Nevada, Texas, and Florida, which have only been small players in residential and commercial solar until now but have high solar insolation and relatively high energy costs. Rooftops Aren't the Only Place Solar Is Popping Up Residential solar is getting most of the attention in the media, but it's actually large utility-scale projects where the biggest impact is coming. These projects account for over half of all solar installed, and states you'd never imagine are starting to see solar growth. Minnesota, Colorado, North Carolina, and Oregon have made solar more cost-effective through policy that gives incentives for utilities to adopt solar and policies that make solar energy cost-effective and easy to connect to the grid. Growth in these states won't likely come on rooftops; it'll be ground-mounted small utility-scale projects that gain adoption, because they're lower-cost than residential solar. And 2015 Is a Tipping Point It's possible that 2015 will be the first year in which over half of new electricity generation capacity in the U.S. will come from solar. It's also likely that the industry will start to solve its intermittency issue, installing energy storage in a growing percentage of homes that decide to go solar. Both would be big milestones for the industry. The potential growth for the solar industry isn't measured in billions of dollars, it's measured in trillions, and in 2015 we'll begin to see the industry's leaders take a larger role in our overall energy future and spread their wings across the country. Like it or not, solar energy is coming to a town near you. More from Travis Hoium
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It's a good time to invest in technology stocks. With the U.S. economy picking up steam and other developed countries holding their ground, tech companies should be able to deliver solid growth in the coming years. As a result, "the returns to investors could be quite, quite high," says Walter Price, a co-manager of Wells Fargo Advantage Specialized Tech Fund. See Also: A Technology ETF With Balanced Holdings Moreover, we're still not halfway through a four-month stretch that historically has been a good period for owning tech stocks. In six of the past seven years, the Nasdaq 100 Technology index has outpaced Standard & Poor's 500-stock index from November through February. Dan Wiener recently wrote about this—he calls it the "Tech Winter"—in his newsletter, The Independent Adviser for Vanguard Investors. During this period, Wiener says, "well-chosen tech stocks traditionally post some of their best market-beating numbers." Much of that is driven by a year-end "use-it-or-lose-it" mindset at big technology buyers. And ahead of new-product launches, tech companies typically offer discounts on older products at this time of year, and that spurs more buying. The operative words, though, are "well-chosen tech stocks." That's where smart, experienced mutual fund managers come into play. Below, we name our five favorite no-load tech funds. (Returns are through December 18.) .kip-article-advertisement h5 {display:none} Though they come from the same fund company, Fidelity Select Electronics Portfolio (FSELX) and Fidelity Select IT Services Portfolio (FBSOX) differ dramatically. Select Electronics, which Steve Barwikowski has run since 2009, focuses on the semiconductor industry and the end markets it serves, including computer companies and cell-phone makers. The fund holds many of the industry's major players, including Korea's Samsung Electronics (the world's second-largest semiconductor company) and Intel (the computer-chip juggernaut). The subsector's boom-and-bust cycles are shorter and less severe than they once were, says Barwikowski. But he still spends a lot of time figuring out where we are in that cycle and then picking stocks for the portfolio accordingly. Barwikowski is at heart a value investor, so if the semiconductor cycle is hitting bottom (an abundant supply of chips and low demand for such products), then he'll likely buy stock in small companies on the cheap. At the peak of the cycle, when chip demand is high, he's more likely to buy shares in large, dividend-paying companies with steady profits. Currently, Barwikowski says, it's "Goldilocks time: It's not too hot and it's not too cold." Demand is good, and inventories are lean but not too lean. At last word, the fund had about 80% of its assets in semiconductor makers, distributors and chip-equipment makers. About 10% was in electronic equipment makers, such as Audience Inc., which makes products that improve voice quality in mobile devices. The rest of the assets are split among Internet firms, including Amazon.com and Google, as well as software and computer hardware businesses. The fund holds 68 stocks. This fund has been a touch more volatile than the typical tech fund over the past five years. But since Barwikowski stepped in as manager, it returned 25.4% annualized, outpacing the typical tech fund by an average of 4.6 percentage points per year.  Select IT Services holds what manager Kyle Weaver calls "stodgy and unsexy" companies. That's because, he says, he focuses on "businesses that help other businesses use technology to solve their problems." It's a wide net, as it turns out. But these firms – Visa and MasterCard are among the fund's top holdings – can prosper in almost any kind of economy and can survive almost any technological advances that may be affecting their industries. Apple Pay, Square and PayPal may be revolutionizing how people pay for goods and services, but Visa and MasterCard, says Weaver, are "still the rails on which all of those transactions will take place." Moreover, he says, "it's nice to invest in a subsector that is a little bit immune to innovation." Weaver ran an IT services fund for another firm, RiverSource Investments, before joining Fidelity in 2008. From the time he stepped in as manager of Select IT Services in February 2009 (a month before the start of the great bull market), the fund earned a 25.2% annualized return, an average of 4.4 percentage points per year better than the typical tech fund. Red Oak Technology Select (ROGSX) is the smallest fund among our favorites, with just $148 million in assets. Its parent firm, Oak Associates Funds, is based in Akron, far from major tech or finance centers. But Red Oak is still a winner. From the time Mark Oelschlager took over as manager in April 2006, Red Oak returned 10.7% annualized, an average of 2.8 percentage points per year ahead of the typical tech fund. Some tech investors try to identify the next hot story or the fastest-growing companies. Not Oelschlager. "High-growth companies and companies with exciting stories do well for a couple of years, and then they flame out," he says. So he focuses on tech companies with sustainable profits and good competitive positions within their industry that trade at bargain prices. "We're trying to identify companies that will be around for a long time and make a lot of money for a long time." To build his portfolio, Oelschlager hews closely to three core principles: First, he takes a long-term view. Second, he keeps the portfolio to 25 to 40 stocks at any given time (the fund held 38 stocks at last report). Finally, he stays fully invested. If he finds a new company he wants to invest in, he has to sell a current holding to make room for it. That said, when he buys, he tends to hold. The fund's turnover rate is 15%, which implies that holdings stay in the fund for nearly seven years, on average. By contrast, the typical tech fund turns over its portfolio at least once a year. The fund's top holdings at last report were Cisco Systems, Northrop Grumman and Oracle. You won't see many of the grande dames of tech among the 69 stocks in T. Rowe Price Global Technology (PRGTX). "I don't own IBM, Hewlett-Packard, Samsung Electronics and SAP," says manager Joshua Spencer. That's because he approaches this sector with the view that technology is about change and innovation. "It's a winner-take-all kind of market," he says. "It pays to invest with the winners, and we try to bet on the right side of change." Some of the winners he has bet on are well-known, and others are not. Amazon and Google, for instance, are among his top holdings. So are Tencent Holdings, a Chinese company that owns Internet and mobile businesses, electric carmaker Tesla, and Zillow, the real-estate data firm. What ties them together: They each play a unique role in revolutionizing their industry. "They each do something no one else can do as well as they do, and they're gaining share, and they have a strong competitive position," says Spencer. Spencer says he and his team of 20 analysts do "deep field research" on companies in the U.S., Asia and Europe to find good ideas. The process has won results: Over the past 10 years, the fund tops the charts of all tech funds, with an annualized return of 13.4%. That's an average of 4.6 percentage points better per year than the typical tech fund. And considering how volatile tech stocks can be, the fund has been remarkably consistent. Except for one instance, in each of the past 11 calendar years (including so far in 2014), the fund ranked among the top 37% of its peers or higher. (The exception was in 2007, when the fund's 13.4% return lagged the typical tech fund by 2.7 percentage points.) Though Spencer's tenure as manager goes back only 2.5 years, he has been a key analyst with the fund since 2005. Since he became manager in June 2012, his fund returned 28.0% annualized, beating the typical tech fund by an average of 5.7 percentage points per year. Walter Price and Huahua Chen, the managers of Wells Fargo Advantage Specialized Technology (WFTZX), break the portfolio into three groups. The first group consists of companies that have prospective near-term annual earnings or revenue growth of at least 50% and that could be "the next breakthrough company," says Price. Facebook, Tesla and Palo Alto Networks, a network-security firm, fit in this category. The second consists of growing companies trading at reasonable prices. Among them are Google and SunPower, a maker of solar panels. The third category includes undervalued companies with a catalyst to spur growth, such as Microsoft and Alcatel, a maker of telecommunications equipment. The managers also have a rigorous process for selling. They assign one-year and two-year price targets for each stock in the portfolio (the fund at last word held 65 stocks). If a stock hits its shorter-term target, the managers start to trim their shares. Once it hits its longer-term target, they unload the position outright. In 2013, they sold their holdings in high-flying stocks, such as Pandora and Yelp, both of which registered triple-digit gains that year. Those moves, says Price, helped lift the fund to a 42.9% return in 2013, a whopping 7 percentage points better than the typical tech fund. The fund's long-term record is strong, too: Over the past 10 years, it earned 10.4% annualized, an average of 1.7 percentage points better than the typical tech fund.
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