How to get the most from long-term care policies

No one wants to spend time reading an insurance policy. But if you're concerned about your long-term care, you'll read it carefully.

As with all insurance policies, you should check the company's ratings through an independent rater, such as A.M. Best. You want your insurance company to be around in 20 years when you need it. What else to look for, according to attorney Frank Darras of Ontario, Calif.

LONG-TERM INSURANCE: Peace of mind at a price

• A record of low premium increases. In September, John Hancock raised some of its long-term care premiums 40%, Darras says. "Look for the companies with the lowest premium increases the past 10 years." Two suggestions: Northwest Mutual and New York Life.

• Flexibility on at-home care providers. Some companies won't pay spouses or relatives for providing care, Darras says. You'd probably prefer a resident relative to provide some care. "You have people who didn't read the terms of the policy, didn't have anyone explain it to them," Darras says. "They get services, the carrier denies it, and it's a legitimate denial."

Having a policy that allows resident relatives to provide care eliminates 90% of claims disputes, he says. And it allows a greater degree of comfort. "If I have the money to stay at home, I don't want a stranger changing my diaper," Darras says.

You should choose a policy with a minimum three-year payout. People who need full-scale nursing home care will need it for about that long, Darras says.

Once you start collecting, make sure you have someone to help you with the process. Some companies make the process cumbersome, Darras says, knowing that old, sick people often can't keep up with the claims process. And some companies will want a plan of care, signed by a doctor, before they'll pay out. Avoid companies with offshore claims centers.

Small denials can add up for insurance companies, Darras says. "If you trim a few days here and there, times a million policyholders, it adds up to real money.! "

Follow John Waggoner on Twitter: @johnwaggoner.

ON THE MARKET - Alert > The VIX ticked 11.99 on Friday - watch it

Pre-market – Monday 11-18-2013

"The most important single central fact about a free market is that no exchange takes place unless both parties benefit."

~ Milton Friedman ~

Dr. John L. Faessel

ON THE MARKET

Commentary and Insights

Quotes of the day

"I know more about policies on any particular issue than my policy directors."

&

"I am absolutely certain that generations from now we will be able to look back and tell our children that this was the moment when we began to provide care for the sick and good jobs to the jobless; this was the moment when the rise of the oceans began to slow and our planet began to heal."

~ Barack Obama ~

~~~~~~

"I would simply ask—do you really want the same people who implemented Healthcare.gov (the Obamacare website) to run medicine in this country?" Mark Ling, M.D. Ph.D.

"If you like your plan" video montage

ALERT > The VIX ticked 11.99 on Friday - WATCH IT…

MARKET

The Dow Jones Industrials and S&P 500 (SPX) had their sixth straight week of price gains however it was another mostly dull week despite new highs for all three major indexes. Last week's volume was below average in the NYSE and slightly above average in the Nasdaq tho it was options expiration. "Price" in the S&P 500 (SPX) remains well above the resistance (now questionable support) of the top trendline of the channel that goes back to 2009. Overboughtness (McClellan) is in Neutral.

My Take

Major stock indexes remain extended and remain in strong uptrends and they keep adding points with hardly a hiccup albeit the gains have been relatively modest week over week. Bullish sentiment has eased over the last week although some indicators are flashing euphoric alerts. I continue to believe that discretion suggests that some $$ should be taken off the table as the market is priced to perfection. The debt ceiling is closing in and the Iran nuclear situation is smoldering on the front burner as they are very close to having nukes and I continue to believe that Israel, in concert with possibly the Saudi's, will act while the USA continues to have its head in the sand. The global debt behemoth, manipulation of interest rates, printing money and debasement of our currency continues unabated. EuroLand is slows with new rate cuts. Oh and the VIX premier gauge of fear ticked 11.99 on Friday. It's a la la land situation where major players seem to believe that we are in a new paradigm and debt means nothing – in effect saying; "let the good times roll – thank you – I'm fine and I'll have another bottle, err - make it two, of tequila." I'm dizzy just watching them getting bombed a la 1999.

Remember the prescient Volker quote;

In my ON THE MARKET report on 7-8-1999 I gave you the 'IT' quote:

"The fate of the world economy is now totally dependent on the growth of the US economy, which is dependant on the stock market, whose growth is dependent on about 50 stocks, half of which have NEVER REPORTED ANY EARNINGS." Said Paul Volker, former Chairman of the US Federal Reserve, who made that statement in the summer of 1999 when the Nasdaq was at 2500.Recall that in October 1998 the Nasdaq traded at 1357. In March 2000 it topped and traded at 5132.

Of Note re IRAN

Israeli Prime Minister Benjamin Netanyahu has called last week's offer to Iran, which incredibly had the support of USA's Secretary of State John Kerry, a "very, very bad deal."

S&P 500

The S&P 500 (SPX) closed Friday at 1798.18 - the prior Friday it was 1770.61

The 50-day moving average support is 1724

Short term 'Price' support is at 1791 / 1773 /

The a bit further out 1762 / 1746 / 1740 / 1716 / 1646 and 1627

The 200-day moving average support is at 1637

The top trend line of the channel that goes back 2009 to at (SPX) 1756 is now support ('that' previous resistance was breached on October 22nd.)

Channel and trend line support of (November 2012) is at 1702

Then deep channel and trend line support of (October 2011) is at 1595

Then the deepest channel and trend line support of (March 2009) is at 1389

* This Week's Investor Sentiment

The Bullishness / Bearishness complex overview has eased from recent post high Bullish readings.

(High BULLISH readings in the Investor Sentiment Readings usually are signs of Market tops; low ones, market bottoms.)

The Citigroup "Panic / Euphoria" Model remained in 'very high' neutral at a plus 0.42 registering a duplicate of last week's 0.42. These numbers are very near the Euphoria zone. In February 2013 it ticked into Euphoria at plus 0.49 and that posting was the highest since May 2008. At the end of June, 2011 it ticked cycle lows of minus0.31 in the Panic mode.

The American Association of Individual Investors [AAII]Investor Sentiment Survey of BULLISHNESS slid to 39.2% from 45.5% the prior week.

The "Bullish" survey posted recent highs of 52.3% 8-months ago. It posted cycle lows of 22.2% on 7/23/2012 the lowest percentile since August 2010. Long-Term Average: Bullish: 39.0%

The American Association of Individual Investors [AAII] Investor Survey of BEARISHNESS added a few percentile to 27.5% from last week's 21.8 -- 5- weeks ago it registered the lowest read since 1/12/2012 at 17.6%. Cycle highs of Bearishness of 54.5% were posted 14 weeks ago. Long-Term Average: Bearish: 30.5%

Consensus Index BULLISH was up to 72% from 68% last week's posting. New Cycle highs in Bullishness of 77% were posted 6-months ago matching the top tick of 77% on 10/11/2007.

The Market Vane (Market Letter Survey) posted a duplicate of last week's 65%. In October 2007 it topped at 70% bullish.

The BARRON's Confidence Index is 72.6 upa tick from 72.5 the prior week, one-year ago it was 66.6.

The Confidence Index is the premier measure of how the bond markets trillions (total global is around $93 trillion and USA is about 39% of that) are allocated: (The bond market is twice the size of the stock market.) The Index is the High-grade bond index divided by intermediate-grade index. A decline in latter vs. former - generally indicates rising confidence, pointing to higher stocks.

Friday's key indicators and metrics:

Cycle highs or lows are in red

·McClellan Oscillator is in Neutral at plus 39.7%

·3-month $ LIBOR hangs at new lows of 0.23810%

·CBOE Put / Call Volume Ratio – 0.75

·VIX – 12.19 - interday it ticked 11.99

·Swiss Franc – 1.0929

·US Dollar Index – 80.90

·Euro – 1.3490

·Japanese Yen – 0.9979

·Canadian Dollar – 0.9564

·Aussie Dollar –0.9343

·Crude oil (NYMEX) 93.84

·Brent crude 107.89

·Copper – 3.1710

·Gold (COMEX) – 1287.4

·Natural Gas (Globex) – 3.660

·The Treasury 5-year yield – 1.34%

·The Treasury 10-year yield – 2.70% - cycle high was on 9/10/2013 at 2.98%

·The 30-year Treasury – 3.80% - cycle high was on August 22nd at 3.93%

·Silver (COMEX) – 20.727

·Platinum 1438.9

·Palladium 732.65

·Lumber (CME) – 363.50

.

UBS Execs: Less Advisor Turnover, Lower Comp Costs Ahead

UBS Group (UBS) CEO Sergio Ermotti agrees with Morgan Stanley (MS) CEO James Gorman, at least on one point: The proposed disclosure of upfront payments paid to advisors who switch broker-dealers should reduce turnover.

The transparency, he said on a call with equity analysts Tuesday, “is going to clearly prevent or slow down the amount of people, the turnover of financial advisors, in the industry.”

Over time, this means that firms like UBS and Morgan Stanley will see “a beneficial effect on compensation,” Ermotti added. “But this is not something that you will see on a quarter-by-quarter basis. It's going to take time … it's clearly a good news in respect of improving the economics of the difference.”

According to CFO Thomas Naratil, UBS is not the biggest spender on advisor recruiting on Wall Street.

“We are not the high payer for recruiting bonuses at this point in time. We have a very disciplined process on that,” Naratil said during the conference call.

“We think that we've got a very attractive model as a firm that's focused on wealth management. As a result, we don't have to pay the highest price to get the best-quality advisors. And I do think that, that's an important aspect in the model for competition. It's not about buying, it's just about compensating people for making the move.”

Today’s upfront payments “are a function of record-low levels of industry attrition. The industry … pays those amounts because people don't want to move,” Naratil added.

Earlier in the call, Ermotti and Naratil discussed UBS’ latest earnings. The firm said Tuesday that it had a third-quarter profit of 577 million Swiss francs ($644 million) vs. a $2.1 billion-franc loss in the year-ago period.

The results included charges of 586 million francs for litigation, regulatory and related matters, issues that — along with larger capital requirements — are likely to limit the bank's ability to meet its profit targets in 2015, the bank says.

“As we anticipated, the third quarter saw a number of headwinds. Client activity decreased significantly and risk aversion increased as clients intensified their focus on capital preservation,” said Naratil during the call. “Nevertheless, performance was resilient, as we delivered [an adjusted] pretax profit of CHF 484 million in a challenging quarter.”

In the latest period, the bank trimmed operating expenses and staff. Its total headcount fell to 60,635 from 62,628 last year. Also, UBS says it has set aside some $803 million to settle claims in the United States tied to mortgage-backed securities.

Wealth Results-Americas

The unit recorded a pretax profit of $218 million, up 32% from $165 million in the year-ago quarter but down 11% from the second quarter, which had a record profit of $245 million.

Invested assets were $919 billion, an increase of 3% from $892 billion in the second quarter and up 10% from $832 billion in the year-ago period. Revenues were $1.748 billion, an improvement of 12% from $1.565 billion a year ago but down 2% compared with $1.780 billion last quarter.

“Additionally, at $1.3 billion, recurring income increased to record levels,” Naratil said. “This was offset by a decline in transaction-based fees on seasonally slower client activity, as well as higher loan loss allowances and a $20 million trading loss related to pressure on Puerto Rico municipal securities.”

The number of advisors rose to 7,137 from 7,099 in the second quarter and 7,032 a year ago.

“FA attrition remained at historical lows, and the business continues to enjoy strong momentum,” Naratil noted.

Net new money was $2.1 billion, giving the unit 13 straight quarters of positive inflows.

Average invested assets per financial advisor increased to $129 million, up 2% from Q2 and up 9% from $118 million a year ago.

Average fees and commissions per financial advisor were $994,000, down 1% from $1,005,000 in Q2 and up 12% from $890,000 in a year ago.

---

Check out ThinkAdvisor’s 2013 Q3 Earnings Calendar for the Finance Sector.

 

Apple's Long Road to Break Even

It has been quite a year for Apple Inc.(AAPL) shareholders.

After Monday’s 3% rally ahead of Tuesday’s expected iPad event, the stock is closer to breaking even for 2013, a mark that seemed out of reach just a few months ago.

A combination of slowing growth and rising competition has taken a toll on the stock price since it hits peak in September 2012.  Shares have recently built some positive momentum and optimism is building ahead of Tuesday’s iPad event.

The iPad Mini is the world’s best-selling tablet computer, and is estimated to account for nearly two of every three iPads sold, as WSJ’s Daisuke Wakabayashi and Ian Sherr reported. It plays a central role in the company’s strategy for the post-PC era. Its latest batch of iPads will square off against a number of rivals from the likes of Samsung Electronics, Amazon.com Inc.(AMZN) and Microsoft Corp. that are chipping away at Apple’s lead.

“We believe this will be the most important refresh of the iPad franchise” since the product debuted about three-and-a-half years ago, says Brian White, an analyst at Cantor Fitzgerald. He estimates a new iPad will be about 15% thinner, anywhere in the range of 7% to 10% narrower and at least 20% to 30% lighter. It could also come in new colors, similar to the iPhone 5S released last month.

Apple shares hit $524.19, the highest level since January. The stock price started the year at $532.17, meaning it is coming close toward breaking even for 2013.

In addition, billionaire investor Carl Icahn disclosed in August that he had built a significant stake in the iPhone and iPad maker when the stock was trading at about $465. Shares have since risen 13%.

To be sure, it isn’t time to start cheering Apple’s feat just yet. The company still significantly lags both the S&P 500, up 22% this year, and the tech-heavy Nasdaq Comp, up 30%.

And Apple has a long way to go in its comeback effort. Shares remain down 25% from the record high above $700 reached in September 2012.

Consider the recent move a baby step in the right direction. Shares traded south of $400 as recently as the end of June before mounting the latest rally.

Best Heal Care Stocks To Watch For 2014

The full implementation of the Patient Protection and Affordable Care Act, also known as Obamacare, is less than seven months away now. For many people, the confusion around what this bill will do, what it won't do, why it was implemented, and what the potential benefits and risks are remains as elusive as ever. With each passing poll from Gallup and various other sources, the only prevailing theme I can come up with is uncertainty.

So today, I thought it would make sense to take a closer look at the state health exchanges that are being created under the PPACA and see how they could positively and negatively affect you and the insurance sector in the coming months. If you have a question, we may certainly have the answer below...

Source: White House on Flickr.�

Why create a health exchange?
To fully understand the benefits and risks of state health exchanges, we first need to understand why they were created in the first place.

Best Heal Care Stocks To Watch For 2014: Pci Ltd (P19.SI)

PCI Limited, an investment holding company, provides electronics manufacturing services in the United States, the People�s Republic of China, British Virgin Islands, Singapore, ASEAN, Britain, and Australia. It offers a suite of design services, such as schematic design, board layout, component selection, firmware design, and mechanical design. The company offers various manufacturing supply chain services, including design, manufacturing engineering, material sourcing and procurement, assembly, test, and logistics services. Its manufacturing services include printed circuit board assembly; customer user interface design and manufacture; and turnkey electronics manufacturing services. The company�s project portfolio comprises networking and wireless communications products, mobile digital appliances, liquid crystal modules for mobile communications products, and control panels for computer peripherals, as well as a range of medical, industrial, and automotive products. I t is also involved in the rental of properties; and provision of estate management, and research and development services. The company was founded in 1972 and is headquartered in Singapore. PCI Limited is a subsidiary of Chuan Hup Holdings Limited.

Best Heal Care Stocks To Watch For 2014: MutualFirst Financial Inc.(MFSF)

MutualFirst Financial, Inc. operates as a holding company for MutualBank that provides financial products services to individuals and businesses. It accepts various savings deposit accounts, NOW and demand accounts, and certificates of deposit. The company also provides one- to four-family residential mortgage loans, multi-family and commercial real estate loans, construction and development loans, commercial business loans, and consumer loans, including home equity and lines of credit, home improvement, auto, boat, and recreational vehicle loans, as well as loans secured by savings deposits, and credit card and unsecured loans. In addition, it operates as an insurance agent and sells life insurance, and credit-life and health insurance products. Further, the company provides investment money management and trust services. It operates 33 full service financial centers located in Delaware, Elkhart, Grant, Kosciusko, Randolph, St. Joseph, and Wabash counties, Indiana. The co mpany was founded in 1889 and is headquartered in Muncie, Indiana.

Advisors' Opinion:

• [By Tim Melvin]

  MutualFirst Financial (MFSF) makes the list, trading at 80% of book value and yielding 1.61%. The bank has total assets of about $1.4 billion and is located in Muncie, Ind. Like a lot of small banks today, the story here is one of steady credit improvement and compressed net interest margins. It is one of many smaller institutions that I think will eventually be taken over; the current regulatory climate simply does not favor little banks. Insiders own about 10% of the stock, so they are invested in the idea of a much higher stock price.

Best Small Cap Stocks To Watch For 2014: DENTSPLY International Inc.(XRAY)

DENTSPLY International Inc. designs, develops, manufactures, and markets dental consumable products, dental laboratory products, and dental specialty products worldwide. The company?s dental consumable products include dental sundries, such as dental anesthetics, prophylaxis pastes, dental sealants, impression materials, restorative materials, tooth whiteners, and topical fluoride; and small equipment, including high and low speed handpieces, intraoral curing light systems, dental diagnostic systems, and ultrasonic scalers and polishers used in dental offices for the treatment of patients. Its dental laboratory products comprise dental prosthetics, including artificial teeth, precious metal dental alloys, dental ceramics, and crown and bridge materials, as well as equipment, such as computer aided machining ceramic systems and porcelain furnaces used in the preparation of dental appliances by dental laboratories. The company?s dental specialty products consist of endodonti c instruments and materials, implants and related products, bone grafting materials, 3D digital implantology, and orthodontic appliances and accessories. Its customers include dentists, dental hygienists, dental assistants, dental laboratories, and dental schools. The company distributes its dental products directly to dental laboratories and dental professionals, as well as through distributors, dealers, and importers. DENTSPLY International Inc. was founded in 1983 and is headquartered in York, Pennsylvania.

Advisors' Opinion:

• [By Sue Chang and William L. Watts]

  Dentsply International Inc. (XRAY) �shares rose 3%. The stock was raised to buy from underperform at Bank of America, according to Benzinga.

Best Heal Care Stocks To Watch For 2014: Computer Programs and Systems Inc.(CPSI)

Computer Programs and Systems, Inc., a healthcare information technology company, designs, develops, markets, installs, and supports computerized information technology systems to small and midsize hospitals in the United States. Its enterprise-wide system automates the management of clinical and financial data across the primary functional areas of a hospital. The company offers services that enable customers to outsource certain data-related business processes in the areas of clinical care, revenue cycle management, cost control, and regulatory compliance. Its software products include Patient Management, which enables a hospital to identify a patient at any point in the healthcare delivery system, and to collect and maintain patient information through the process of patient care; Financial Accounting that provides various business office applications to track and coordinate information needed for managerial decision-making; and Clinical, which automates record keeping and reporting for a range of clinical functions, such as laboratory, radiology, physical therapy, respiratory care, and pharmacy. The company?s software products also comprise Patient Care that allows hospitals to create computerized patient files; and Enterprise Applications, which provide software applications that support its products for use in various areas of the hospital. In addition, it offers support and maintenance services; business management services, including electronic billing, statement processing, accounts receivable management, payroll processing, contract management, and insurance services; and system implementation and training services, such as conversion and training. Further, the company sells computer hardware, peripherals, forms, and office supplies. It serves acute care community hospitals; and small specialty hospitals that focus on medical areas, such as surgery, rehabilitation, and psychiatry. The company was founded in 1979 and is headquartere d in Mobile, Alabama.

Advisors' Opinion:

• [By Sally Jones]

  Both CSP Inc. (CPSI) and ITT Educational Services Inc. (ESI) have struggled in the last year. Their revenues are way down as of the second quarter, year over year. Richard Blum�� Blum Capital Partners LP continues to trim sinking education companies where the company is 10% owner, and John Rogers of Ariel Capital Management cuts a long-held defense company that delivered high gains over five years.

Best Heal Care Stocks To Watch For 2014: Metminco Ltd(MNC.AX)

Metminco Limited, through its subsidiaries, engages in the exploration and development of mineral prospects primarily located in Chile and Peru, South America. It primarily focuses on exploring copper, as well as on gold, molybdenum, and zinc. The company principally holds interests in the Los Calatos copper and molybdenum porphyry deposit located in southern Peru. Metminco Limited was incorporated in 2006 and is based in North Sydney, Australia.

Best Heal Care Stocks To Watch For 2014: Itv Ord 10p(ITV.L)

ITV plc operates television channels in the United Kingdom and internationally. The company?s Broadcasting and Online segment operates a family of television channels. Its channels include ITV1, a commercial television channel; ITV2, a digital channel for younger audience of 16-34 year old with a female bias; ITV3, a films and drama channel; ITV4, a sports channel; and CITV that provides children?s programming. This segment, through SDN, a digital terrestrial television multiplex operator, leases out digital terrestrial capacity to channel operators on the United Kingdom?s broadcast platform, Freeview. It also operates itv.com, which delivers ITV programming and clips to Internet users through ITV player, as well as provides video on demand services on cable television and other closed platforms. The company?s ITV Studios segment produces programming for ITV channels and for other UK and international broadcasters. This segment also distributes programming, formats, an d merchandising in the UK and worldwide on various platforms; and involves in home entertainment, publishing, and licensing activities. The company is based in London, the United Kingdom.

Best Heal Care Stocks To Watch For 2014: E-Commerce China Dangdang Inc.(DANG)

E-Commerce China Dangdang Inc. operates as a business-to-consumer e-commerce company in the People?s Republic of China. It engages in the sales of Chinese and foreign language books, and music CDs, VCDs, and DVDs through its Website dangdang.com. The company also offers general merchandise products, such as beauty and personal care products; home and lifestyle products; consumer electronics; baby, children, and maternity products; apparel and accessories; and footwear, handbags, and luggage. In addition, it operates the dangdang.com marketplace program, which enables third-party merchants to sell their products alongside products sourced by the company. The company is headquartered in Beijing, the People?s Republic of China.

Advisors' Opinion:

• [By Rick Munarriz]

  It was an isolated event. E-Commerce China Dangdang (NYSE: DANG  ) -- the publicly traded company that most stateside investors associate with e-tail in China -- actually moved higher on Tuesday.

• [By Jeremy Bowman]

  What: Shares of Chinese stocks were getting dumped today following the Shanghai Composite's 5.3% plunge last night. Among those feeling the pain were YY (NASDAQ: YY  ) , Dangdang (NYSE: DANG  ) , Trina Solar (NYSE: TSL  ) , Giant Interactive (NYSE: GA  ) , and LDK Solar (NYSE: LDK  ) , all of which were down by 10% or more at one point today.

Best Heal Care Stocks To Watch For 2014: Columbia Yukon Explorations Inc (CYU.V)

Columbia Yukon Explorations Inc., an exploration stage company, engages in the exploration and development of mineral properties in Canada. It principally holds interest in the Storie molybdenum property located near the mining camp of Cassiar, British Columbia. The company was founded in 1984 and is based in West Vancouver, Canada.

5 Tips to Help 20-Somethings Pay Off Their Student Loan Debt

Alamy If you're in your 20s, you're probably going through one of the toughest financial periods of your life -- especially if you went to college. Increasingly, recent grads have had to prioritize paying off student loan debt over other important milestones, according to a recent survey from the American Institute of CPAs. Among those responding, 40 percent have put off a car purchase, 29 percent have delayed buying a home, and 15 percent say that they've even pushed back marriage plans because of their debt. It's a tough balancing act -- starting a life, and perhaps a family, while at the same time paying back heavy student loans in one of the most challenging job environments in decades. Yet many young adults are finishing their undergraduate studies only to go on to pursue graduate and professional degrees, generally adding to debt levels. Let's take a look at five things you can do to balance all the competing demands on your money and still find a solution for your educational debt. 1. Know What You Owe -- and How You Owe It There are many kinds of student loans, and you may have taken out more than one. You need to know the terms under which you'll have to pay your loans back. Some loans offer payment deferment options or interest subsidies, while others start the finance-charge clock running as soon as you graduate or require immediate monthly payments. Ideally, you want to prioritize high-interest-rate loans first, which typically means focusing on private loans ahead of government loans. But you should also take grace periods into account, as they aren't all the same length of time. Contact your lenders to find out all the important facts as well as to confirm your mailing address so that you won't be out of touch and end up late on payments. 2. Find Out About Forgiveness One great way of handling student loan debt is to have it written off once and for all. Thanks to the Public Service Loan Forgiveness program and similar options, many borrowers can have student loan debt forgiven if they qualify by working in certain professions, including teaching, public-interest law or medicine, or the military. Volunteers for AmeriCorps or the Peace Corps also can receive funds earmarked to pay off student debt, or have loans partially cancelled. Check out this list of resources for more information. 3. Get Your Money's Worth From Graduate School If you're considering a graduate degree, be sure to closely consider the extra costs of years of additional education and compare them against the potential benefits. In many cases, graduate degrees can be far more expensive than undergraduate tuition, yet the job prospects for graduates are still far from certain. For instance, the legal profession is expected to see a drop of 7.3 percent in employment this year, according to hiring solutions and research group Bright.com. Meanwhile, according to one survey, almost 90 percent of law students borrow an average $80,000 to pay for their law degrees, before joining a glutted job market with an average starting salary of just $62,000 a year. So be smart about whether to go to grad school and which school you choose. 4. Be Careful With Consolidation Consolidating your loans can reduce your monthly payment, which is attractive to cash-strapped 20-somethings. But it also extends the period over which you're repaying those loans, potentially leaving you saddled with debt for decades. That might sound like a reasonable trade-off now, but one reason that so many borrowers have put off car and home purchases is that their credit isn't strong enough to handle car loans or mortgage debt. Also, watch carefully to make sure you preserve options like deferment or forbearance on loans after you consolidate in order to avoid losing some repayment flexibility. 5. Help Your Own Kids Out Early If you've started a family, get an early start on helping your children avoid the troubles you might have suffered by saving for their college education while they are young. With tax-advantaged 529 plans and Coverdell Education Savings Accounts, you can put money aside and have it grow tax-free for use on educational expenses. The earlier you start, the more time you'll have to watch that money grow, allowing even modest savings to turn into meaningful resources that will help them avoid taking out so much student loan debt of their own.

Why IPG Photonics Is Poised to Keep Poppin'

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, fiber-based laser and amplifier maker IPG Photonics (NASDAQ: IPGP  ) has earned a coveted five-star ranking.

With that in mind, let's take a closer look at IPG and see what CAPS investors are saying about the stock right now.

IPG facts

Headquarters (founded)	Oxford, Mass. (1990)
Market Cap	$3.0 billion
Industry	Electronic manufacturing services
Trailing-12-Month Revenue	$581.2 million
Management	Founder/Chairman/CEO Dr. Valentin Gapontsev CFO Timothy Mammen
Return on Equity (average, past 3 years)	22.5%
Cash/Debt	$355.7 million / $24.6 million
Competitors	Coherent Rofin-Sinar Technologies

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 98% of the 1,513 members who have rated IPG believe the stock will outperform the S&P 500 going forward.   

A couple of months ago, one of those bulls, fellow Fool Billy Kipersztok (TMFTailwind), tapped IPG as a particularly sharp bargain opportunity:

Classic niche dominator. High returns on invested capital, solid growth prospects, and management is continuing to invest in the business. Stock price has taken a bit of a hit since mid-February due to an earnings miss, but I think this is an attractive entry point for a long-term investment.

10 Best Low Price Stocks To Invest In 2014

If you want market-thumping returns, you need to put together the best portfolio you can. Of course, despite a strong five-star rating, IPG may not be your top choice.

In fact, it's incredible to think just how much of our digital and technological lives are almost entirely shaped and molded by just a handful of companies. Find out "Who Will Win the War Between the 5 Biggest Tech Stocks?" in The Motley Fool's latest free report, which details the knock-down, drag-out battle being waged by the five kings of tech. Click here to keep reading.

Why SDL, Chemring, and Galliford Try Should Lag the FTSE 100 Today

LONDON -- The FTSE 100 (FTSEINDICES: ^FTSE  ) is tentatively creeping back up a little today after managing a rise of just 22 points yesterday. By 7:45 a.m. EDT today it has put on a further 48 points, or 0.76%, to reach 6,378. Movements are pretty erratic across the index, with no notable sector-led changes so far today, and the markets still seem to be uncertain ahead of firmer pronouncements from the U.S. Federal Reserve.

The FTSE itself might not be too exciting today, but there is plenty of drama affecting individual companies. Here are three constituents of the indexes that are falling behind.

SDL
The big fall this morning is a 32% drop in the price of SDL after the customer-management software firm issued a profit warning. We were told that "performance for the first half of 2013 has remained below management expectations, and as a result, the Board has lowered its outlook for the current financial year."

City analysts were forecasting pre-tax profit of about £30 million for the year to December, but SDL now says profit before tax and amortization is likely to be in the £15 million to £20 million range -- from a figure of £35.5 million for last year. Poor investment in sales and marketing in previous years is being blamed for the shortfall, and the firm is actively rectifying that.

Chemring (LSE: CHG  )
Chemring Group shares have dipped 4.2% on the occasion of the firm's interim results. For the six months to April 30, revenue at the defense technologist fell 11% to £297.4 million, with a statutory pre-tax loss of £8.8 million reported -- though there was an underlying pre-tax profit of £25.6 million, down 35%.

The bottom line showed a statutory loss of 1.6 pence per share, with underlying earnings per share down from 16 pence to 10.3 pence, and the first-half dividend was slashed by 35% to 3.4 pence per share.

Chief executive Mark Papworth said, "While there is still much to do, we are confident that the Group's performance is heading in the right direction."

Galliford Try (LSE: GFRD  )
Shares in homebuilder and construction services firm Galliford Try have slipped 0.5%, even though the firm has today announced a new contract as part of Manchester Airports Group's Capital Delivery Program framework.

The project, which is expected to run for an initial three years, with extensions for a possible further two years, is likely to include two other contractors and is said to be "potentially worth £500 million in value over the next five years." And the shares fell. Strange things, markets.

Finally, reliable dividends can more than compensate for the day-to-day ups and downs of share prices. So how about a company that's offering a 5% yield and could be set for some nice-share price appreciation, too? It's the subject of our brand-new report "The Motley Fool's Top Income Share For 2013," which you can get completely free of charge -- but it will only be available for a limited period, so click here to get your copy today.

Is This How Desperate Network TV Has Become?

Hollywood is taking out the trash and cooking up new shows. Yet in this instance, "new" is a relative term. Comcast's (NASDAQ: CMCSA  ) NBCUniversal is rebooting the 1960s detective series Ironside, with Blair Underwood replacing the late Raymond Burr in the wheelchair.

The news comes as cable and online alternatives offer more original programming. AMC Networks (NASDAQ: AMCX  ) has television's top-rated show in The Walking Dead. Netflix (NASDAQ: NFLX  ) has received excellent reviews for new series House of Cards and Hemlock Grove. Time Warner's (NYSE: TWX  ) HBO unit just reupped medieval drama Game of Thrones for a fourth season following strong ratings.

Add it all up, and you have what appears to be a permanent shift away from the studios and toward the upstarts, says Tim Beyers of Motley Fool Rule Breakers and Motley Fool Supernova in the following interview with the Fool's Erin Miller. Old Hollywood isn't about to die off anytime soon. But don't get too caught up in stocks such as Comcast, Tim advises. Instead, take small bets on TV Anywhere plays that also have interests in original programming.

Please watch the video to get Tim's specific picks, and then let us know which Hollywood stocks you like most right now.

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Safety First? Apparently Not at U.S. Automakers

The Insurance Institute for Highway Safety (IIHS) released its best-rated safety picks for 2014 model year cars on Thursday and the big news is that the Camry from Toyota Motor Corp. (NYSE: TM) is back on the list after getting dropped earlier this year. The IIHS added a "small overlap front crash test" to its testing regimen last year and that has been a stumbling block for a lot of previously highly rated vehicles. The test simulates a left-front collision with a stationary object like a tree or telephone pole.

The 2014 list is divided into two categories: Top Safety Pick+ and Top Safety Pick. Here are the IIHS criteria:

TOP SAFETY PICK requires good performance in the Institute’s moderate overlap front, side, roof strength and head restraint tests and, for the first time, good or acceptable performance in the small overlap front test introduced in 2012. The same level of performance in those tests, along with at least a basic rating for front crash prevention, is required for the higher accolade, TOP SAFETY PICK+.

Most cars that achieved the Top Safety Pick+ rating incorporate front-crash prevention systems that incorporate including both warning systems and automatic braking.

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The Top Safety Pick+ list includes 22 vehicles and the Top Safety Pick list includes an additional 17 vehicles. Last year, before the small overlap front crash test was adopted, 130 vehicles made the IIHS lists.

Honda Motor Co. Ltd. (NYSE: HMC) placed seven models on the Top Pick+ list and two more on the Top Pick list, including two Acura models.

Toyota Motor Corp. (NYSE: TM) placed four vehicles on the two lists, including its Camry on the Top Pick list. The Camry had failed the new crash test earlier this year, along with the company's RAV4 and the Prius V models leading to the car's being dropped from the lists. Getting the Camry back on the list was a big deal for Toyota. None of Toyota's Lexus cars made either IIHS list. The Scion tC made the Top Pick list

Ford Motor Co. (NYSE: F) placed just two vehicles on the list, the Ford Fusion and the Lincoln MKZ, but that weak performance bested General Motors Co. (NYSE: GM) which managed to place just one car, the all-electric Chevy Spark, on the Top Pick list. Chrysler placed two cars on the Top Pick list, the Dodge Dart and the Chrysler 200 4-door.

The Chevy Spark is the only mini-car to make the list and GM deserves plaudits for taking care to provide a tiny car that is very safe. But just one car on the list for the top-selling U.S. carmaker? And that one will probably sell a veritable handful of units next year. GM should really be able to do better than that.

Both Ford and Chrysler could kick up their safety efforts a notch or two as well. Toyota made the effort for its top-selling Camry; why don't U.S. carmakers put more emphasis on making safer cars? We leave answering that question as an exercise for the reader.

Hershey’s Shanghai Golden Monkey Acquisition Expands Its Footprint in China

In an effort to expand its footprint in China, Hershey Co. (NYSE: HSY) said in a statement Thursday that it will acquire Chinese candy maker Shanghai Golden Monkey Food Joint Stock Co. The People’s Republic is one of the world’s fastest-growing markets for sweets, and Hershey has increased its investment in the country over the past several years.

Financial details of the deal were not disclosed, but the Pennsylvania-based company said its wholly owned subsidiary, Hershey Netherlands, will acquire 80% of privately held Shanghai Golden Monkey (SGM), which is based in Shanghai and sells such goods as honey-peach hard candies and Xylitol-branded chewing gum. The deal is expected to close in the second quarter of 2014 and is subject to Chinese regulatory and SGM shareholder approval.

Hershey has become one of the fastest growing confection companies in the Asian nation. Hershey officials said the company hopes to expand international sales to 25% of global sales by 2017. It is currently 10% of global sales. Revenue for SGM has been growing by double-digit percentages and is expected to reach $225 million for 2013. About 75% of SGM net sales come from its candy segments, with the rest concentrated in the fast growing protein-based bean products and other snack categories. Overall sales of chocolate, candies and gum in China was estimated at near $13 billion in 2012.

Humberto P. Alfonso, president of Hershey International, said:

Shanghai Golden Monkey is the type of business we’ve been focused on for potential M&A. It fits Hershey’s acquisition criteria: it is located in our primary international market, China; it is a pure play confectionery and snacks company; and it has distribution into channels where Hershey products have yet to penetrate. Additionally, the company has a strong history of innovation and product quality as evidenced by the outstanding reputation of its core brand, Golden Monkey, which has been nationally recognized as one of China’s most iconic brands.

Where Will Ford Motor Go Next?

With shares of Ford Motor (NYSE:F) trading around $15, is F an OUTPERFORM, WAIT AND SEE, or STAY AWAY? Let's analyze the stock with the relevant sections of our CHEAT SHEET investing framework:

T = Trends for a Stock’s Movement

Ford is a producer of cars and trucks. The company also engages in other businesses, such as financing vehicles. Ford operates in two sectors, automotive, and financial services. Through its sectors, Ford provides a wide range of vehicles, vehicle parts, and services to a multitude of consumers and companies worldwide. The company's products saw declining demand in the past several years as gasoline prices took a major toll on pockets. Ford is now revolutionizing its vehicles in order to compete on the world stage. Look for Ford to fuel a recovery in the American automobile industry and provide highly demanded vehicles, parts, and services.

It's no secret that Ford CEO Alan Mulally is a leading candidate for the chief executive slot over at Microsoft (NASDAQ:MSFT), and Ford is well aware. Whether Mulally is awarded the position or not, it's reportedly unlikely that he will remain in Ford's top slot past next year, which means the automaker will have to find someone to fill his shoes — a daunting task, given how well the company has done under Mulally's command. However, a group of longtime employees at Ford — dubbed "lifers" — are hoping that Mulally's inevitable exit will provide them with another chance, and that the management team that Mulally put together feels that his time to go is nearing. Ford's chief operating officer, Mark Fields, is widely regarded as the most probable replacement, Reuters reports.

T = Technicals on the Stock Chart are Mixed

Ford Motor stock has been coasting higher over the past several months. The stock is currently pulling back as it digests gains. Analyzing the price trend and its strength can be done using key simple moving averages. What are the key moving averages? The 50-day (pink), 100-day (blue), and 200-day (yellow) simple moving averages. As seen in the daily price chart below, Ford Motor is trading between its rising key averages, which signal neutral price action in the near-term.

(Source: Thinkorswim)

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

	Implied Volatility (IV)	30-Day IV Percentile	90-Day IV Percentile
Ford Motor options	33.49%	96%	93%

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

	Put IV Skew	Call IV Skew
January Options	Average	Average
February Options	Average	Average

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

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

E = Earnings Are Mixed Quarter-Over-Quarter

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

	2013 Q3	2013 Q2	2013 Q1	2012 Q4
Earnings Growth (Y-O-Y)	-69.00%	15.38%	14.29%	-88.17%
Revenue Growth (Y-O-Y)	11.84%	14.71%	10.37%	5.34%
Earnings Reaction	1.37%	2.53%	-0.22%	-4.64%

Ford Motor has seen mixed earnings and increasing revenue figures over the last four quarters. From these numbers, the markets have had conflicting feelings abour Ford Motor’s recent earnings announcements.

P = Weak Relative Performance Versus Peers and Sector

How has Ford Motor stock done relative to its peers, General Motors (NYSE:GM), Toyota Motor (NYSE:TM), Tesla Motors (NASDAQ:TSLA), and sector?

	Ford Motor	General Motors	Toyota Motor	Tesla Motors	Sector
Year-to-Date Return	20.27%	39.59%	28.21%	335.30%	30.35%

Ford Motor has been a poor relative performer, year-to-date.

Conclusion

Ford is a well-established vehicle products and services producer distributed in a multitude of countries across the globe. The company will have to find someone to fill Alan Mulally shoes. The stock has been rising higher in recent years, but is now pulling back. Over the past four quarters, earnings have been mixed while revenues are increasing which has left investors with mixed feelings. Relative to its peers and sector, Ford has been a poor year-to-date performer. WAIT AND SEE what Ford Motor does this quarter.

The Balance Sheet Walk Through - The Second Step During My Investment Process

The Balance Sheet Walk Through: The Second Step During My Investment Process

"Volatility is a symptom that people have no idea of the underlying value" - Jeremy Grantham

Many investors and business owners on the most basic level overlook the balance sheet analysis routinely. It is not apparent how important the balance sheet truly is to business operations until liquidity concerns are front and center, threatening to terminate daily operations, followed by creditors pillaging assets. Intelligent investors from the school of Graham&Doddsville understand the importance of the financial statements, more specifically the balance sheet, and the story that is being told. Balance sheet analysis comes second only after the idea generation process and is viewed before both the income statement and cash flow statement during my process.

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Solvency

The solvency and liquidity ratios of a firm are of integral importance for both the survival of the firm and creditworthiness of future financing (favorable financing terms may lead to a competitive advantage). The solvency ratios that an intelligent investor should focus on are the current ratio, quick ratio, cash ratio, days of working capital, and interval measure. These ratios show the firms ability to pay the bills in the short-term or how long the firm could last with no future cash-inflows.

The current ratio being the most well known of the bunch, is a measure of the difference between assets that can be converted into cash (in one year or under) and bills or liabilities that are due within the next 365 days. The quick ratio is a form of the current ratio with inventories excluded as inventories can be manipulated (bloated), obsolete, damaged, or lost/stolen and inventories are often the most illiquid current asset. The cash ratio or NWC (net working capital) may be of interest to short! -term creditors or in times of stress. A low level (ratio or %) of either would show that the company operates on low levels of liquidity. Days of working capital or the interval measure may be of interest, revealing the length a business could operate on a short-term basis due to a potential strike or other disruption of cash inflows.

· Current Ratio = Current Assets / Current Liabilities

· Quick Ratio = (Current Assets – Inventory) / Current Liabilities

· Cash Ratio = (Cash + Cash Equivalents) / Current Liabilities

· Days of Working Capital = (Current Assets – Current Liabilities) / (Annual Expenses / 365)

· Interval Measure = Current Assets / Average Daily Operating Costs (excluding interest and depreciation)

"At Berkshire the need for ample liquidity occupies center stage and will never be slighted, however inadequate rates may be. Accommodating this need, we primarily hold U.S. Treasury bills, the only investment that can be counted on for liquidity under the most chaotic of economic conditions. Our working level for liquidity is $20 billion; $10 billion is our absolute minimum." – Warren Buffett

The solvency metrics of a business are of importance but it is generally a good idea to dig deeper into the quality and reliability of cash flows in the income and cash flow statements. An example is a company like P&G operating with negative working capital with 24 billion current assets and 30 billion current liabilities or 0.8 current ratio, but due to the reliability of the conversion of inventory to cash and additional sales (from continuing operations) that may be generated in any given quarter, P&G is able to service this debt with ease. (Some companies may need short-term financing due to seasonality of their business model)

Sources and Uses of Cash

During each quarter or year (actually everyday) a company generates cash as well as uses cash, loosel! y speakin! g, an increase in assets or decrease in liabilities/equity is a use of cash while a decrease in assets or an increase in liabilities/equity is a source of cash (the difference being net addition or subtraction to cash). The story is not finished there and balance sheet changes must be viewed in combination with the income statement and cash flow statement over multiple time intervals, if one wishes to reveal what is happening in the company. I personally elect to view a mandatory minimum of three years while ideally viewing 7-10+ years.

Asset Management & Turnover (Efficiency Ratios)

Assuming the company that one is analyzing is not forgoing any additional sales, the higher the inventory turnover ratio the more efficient the company is managing its inventory. The longer the days' sales in inventory or lower the inventory turnover ratio the more the company must pay in storage, insurance etc., ultimately lowering the companies gross margins. The average or what is considered normal is roughly 90 days for days' sales in inventory and if the ratio is higher one should investigate for a number of reasons.

Management could have poor financial management skills by over investing in inventory, some of the inventory could be obsolete or facing markdowns, inventory shrink may be a problem, or hopefully the company is just selling a different product mix. Selling is usually characterized when the product is shipped or the service is performed but that does not tell us the terms of the sale or ability to collect on those terms. Receivables turnover and days' sales in receivables reveal the ability to collect while payables turnover shows the length it takes to pay. Longer payable periods result in a cash inflow while longer receivable periods result in a cash outflow.

A great business advantage is one where a company uses negative working capital (due to financing abilities) like Cineplex here in Canada. Cineplex has a near monopoly in the movie theatre business (in Canada) with h! igh margi! ns on concession items and a built in competitive advantage based on how the movies are financed. When someone pays to view a movie at Cineplex, they pay for the show immediately before viewing, while Cineplex has an additional 8-12 weeks to pay the production companies, essentially providing a very short-term float and the ability to operate on negative working capital.

The total asset turnover ratio reveals how efficiently the company assets produce cash and should be viewed relative to the fixed asset turnover ratio, enabling an investor to gauge the leverage employed by the company. An investor may also use this information during a scenario analysis/sensitivity analysis; acknowledging fixed costs cannot be forgone, easily.

· Inventory turnover = COGS / Inventory

· Days' sales in inventory = 365 Days / Inventory Turnover

· Receivables turnover = Sales / Accounts Receivable

· Days' sales in receivables = 365 Days / Receivables Turnover

· Net working capital turnover = Sales / NWC

· Total asset turnover = Sales / Total Assets

· Fixed asset turnover = Sales / Fixed Assets

It takes much longer for surplus capacity or inventory to be absorbed than the time it takes demand to exceed supply, leading to longer trough periods and shorter periods of prosperity, due to the fixed nature of production assets and the competitive nature of capitalism (When profit margins are high competition is enticed to enter).

Inventory should also be further viewed with a keen eye, taking notice of raw material, WIP, and finished good trends. Excessive finished goods in relation to raw material or WIP may be a sign of surplus inventory, the opposite being true if raw material and WIP levels are increasing relative to finished goods. One should also be aware of seasonal trends that may lead to additional finished goods being produced (mainly in the third quarter).

F! inancial ! Leverage

Financial leverage ratios show how indebted the company is as well as the ability to service the longer-term debt commitments. Total debt should include all outstanding lease agreements and other contractual obligations that will eventually be paid. The cash coverage ratio may be used questionably on a long-term basis if maintenance Capex is not subtracted from EBITDA. Buffett used maintenance Capex metaphorically, and in his example he used the food/nutrition of a human as a parable for maintenance Capex. Buffett explained that it is ok to miss a meal or two or even an entire week but if you miss to many meals in a row, you will starve to death. Personally I prefer simply looking at the interest that will be owed both currently and over the life of the business, in relation to operating income.

· Debt to equity = Total Debt / Total Equity

· Equity multiplier = Total Assets / Total Equity

· Times interest earned = EBIT / Interest Expense

· Cash coverage = EBITDA / Interest

"When you combine ignorance and leverage, you get some pretty interesting results." – Warren Buffett

Market Value Ratios

The book value reveals the "net worth" of a company and the theoretical value that an investor would receive upon liquidation. The ratio can be very miss-leading, but also very helpful, depending on the nature of the business as well as past events that are concealed within the accounting entries. Book value is subject to an entirely other post, specifically the fallibility of book value and owners equity. Enterprise value is characterized as Market Value of equity + market value of interest bearing debt + minority interest – cash and equivalents. A low EV/EBITDA ratio may show that the company (depending on reliability of cash flows) is able to support additional debt (private equity buy-out/LBO) and is used as a proxy for a firm's cash flows and the market value multiple of those cash flows. It is subject to less accounting ma! nipulatio! n thus is more widely used than the P/E ratio by investment bankers and private equity firms.

· B/V = Market Capitalization / Equity

· EV/EBITDA = Market Value of equity + market value of interest bearing debt + minority interest – cash and equivalents / Earnings before income tax, depreciation and amortization.

Questions to Ask (From My Checklist)

Looking out 5 to 10 years, how does the company plan to invest cash that is retained in the business? Can receivables be collected more aggressively, payables more lenient? Is some debt uncollectable? Is exhausted equipment being regularly replaced? Are the debts of the company trending up or down?

What is the expected return on equity, on incremental investment? What are the company's plans concerning its capital structure over the next five years: Debt/equity, leasing assets, spinning off capital-intensive assets, off-balance sheet financing? Operating leverage: If sales increase by $1 how much will drop to pre-tax income? Is the receivables cycle lengthening? Are the inventory components forecasting a shortage or surplus?

"It's simply to say that managers and investors alike must understand that accounting numbers are the beginning, not the end, of business valuation." – Warren Buffett

About the author:I am working towards the CPA & CFA designations, and would love to manage an investment partnership in the future. I am a self taught investor through Warren Buffett, Charlie Munger, Ben Graham, Peter Lynch, Joel Greenblatt, David Einhorn, Seth Klarman, Howard Marks, Phillip Fisher and Thornton O'Glove. My focus is a bottoms up Value-GARP strategy with a mix of top down contrarianism.

"When you find yourself on the side of the majority, it is time to pause and reflect." - Mark Twain

Visit Tannor Pilatzke's Website

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How Companies Get Their Products to Stand out

In the following video segment, author Debra Kaye discusses her new book, Red Thread Thinking. She explains how companies such as Whole Foods Market and Patagonia are able to make their products stand out from the crowd and communicate their differences effectively. The full version of the interview can be found here.

A transcript follows the video.

If you're looking for a great stock idea, The Motley Fool's chief investment officer has selected his No. 1 stock for the next year. Find out which stock it is in the brand-new free report: "The Motley Fool's Top Stock for 2013." Just click here to access the report and find out the name of this under-the-radar company.

Brendan Byrnes: One of the things you talk about in the book also is getting your products to stand out. How can companies best do that, and maybe some examples of companies that are doing a great job?

Debra Kaye: The way you get your product to stand out is, first of all, innovation. Your product has to have a point of difference. It can't just be marketing.

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Companies that are doing that are companies like Whole Foods. They really created products with a point of difference. They really are the originators of organic foods, and then they really do what they say. They talk about it on the Web and things like that.

Patagonia is another company that really does what it says, because not only are they really trying to do things that are ecologically more sound, but you can go look at their Footprint Chronicles and you can really see how much they're doing in terms of ecologically sound behavior, and what that means in the cost of each product that they're making.

Companies that really do as they say and say as they do, are companies that are making it more obvious.

10 Shopping Days Until Christmas–Retailers Sprint

The spread of estimates of how holiday sales did over the period from Black Friday through Cyber Monday is wide.  NRF reported that Thanksgiving Holiday spending reached $57.4 billion, which was a slight disappointment. Comscore reported that online spending from the start of November through December 11 was higher by 9% to $31.5 billion. (The research firm added that the number of weekends in 2013 was  different from last year, so perhaps online spending was really up 25%). Individual retailers have reported numbers which range from fantastic to horrible. Whatever the correct data are, the holiday retail sales season has gone from a marathon which started on November 1 to a sprint with only 10 days to go.

If the level of discounts offered by Walmart (NYSE: WMT) is any indication, the largest retailer in the world has decided to continue to use free shipping, which can be costly for the retailer, as a means to gain customers. Its most attractive offer, at least for people who do not want to wait until the very last moment, is free shipping on any order of $35 or more. The catch, and there are several, is that it will take 6 to 9 business days for those orders to arrive–which means they may barely make it before sundown on the 24th. Walmart does not say what it costs to get orders as fast as it can deliver them–1 to 2 business days, Customers have to check directly with the retailer. The cost may be too shockingly high for most Walmart shoppers. So, does Walmart really take much of a financial risk on shipping? Maybe not, when the fees are broken down by category.

Best Buy (NYSE: BBY), which unexpectedly resurrected its fortunes, has finally found a way to hold off another holiday beating from Amazon (NASDAQ: AMZN). Or, at least based on what Best Buy management claims, this year its fortunes have turned. The New York Times summed up the improvement. New CEO Hubert Joly told the paper, "We believe that price-competitiveness is table stakes. The way we want to win is around the advice, convenience, service.". Stock analysts have taken Joly’s side, and Best Buy is one of the best performing stocks in the S&P 500 so far this year. In theory, Joly’s approach should work online, where Best Buy has found it impossible to compete with Amazon, and in its stores as well.

But, by the measure of Amazon’s claims, it is hard to see how it cannot take more market share from its bricks-and-mortar competition. Amazon has forecast revenue for the current quarter will be as high as $26.5 billion–as much as 25% above the same quarter last year. It has set a series of tactics to bolster holiday sales. Among the most clever is 1 cent shipping. However, that deal is only good for Amazon Wine orders. It is a clever headline, which is likely to draw some measure of attention for people shopping for other items.

Beyond Amazon’s daily deals, the foundation of its success continues to be that it is the most visited e-commerce site in America. And, just as important, it uses it wildly popularly Kindle, and has for years, as the front door to sales of multimedia products like streaming media and MP3s. The Kindle is leverage which no other retailer can touch. Amazon is set to post another quarter of spectacular results, so long as the direction it has taken in the past is the right one again this year

10 shopping days until Christmas and the labyrinth of deals and offers seems to get more complex by the hour.

Strategies: Entrepreneurs reveal gifts they rea…

We're getting down to the last minute for holiday shopping, and I know at least one entrepreneur or small-business owner must be on your gift list.

This year, instead of compiling my own list of gift ideas, I thought I would ask a number of entrepreneurs what's on their own wish lists.

COLUMN: Gifts suitable for entrepreneurs
GREAT GIFT IDEAS FROM YEARS PAST: 2009 | 2008 | 2007 | 2006 | 2005

Dave Burgess, chief technology officer of a San Francisco start-up called Social in SoMa (it's still in 'stealth' mode, so I can't tell you what it does), says tech entrepreneurs need a full collection of mobile devices — iPad, Android tablet, iPhone and Android phone — so they can test their new products. Since every business owner needs to think of mobile first, that certainly would help make sure the company's digital presence looks good on a variety of mobile devices.

Not in your price range? OK, how about this?

Burgess recommends sending start-up entrepreneurs holiday gift baskets filled with food "to feed us while we work through the holidays."

And everyone, even geeks, likes to have a good time. So Burgess suggests seeing if you can wrangle your favorite small-business owner an invitation to a holiday party thrown by a big corporation.

"They're usually lots of fun with great bands, dancing, and free alcohol," Burgess says.

For Burgess, the best present he personally could get, given the shortage of talent in Silicon Valley? "Refer great software engineers to me."

Sometimes the best holiday gifts for a small-business owner involve getting away. But you don't have to spring for a beach vacation; other kinds of respite work.(Photo: Getty Images)

President and Founder John Barrow of! Coolibar of Minneapolis, which makes UV sun-protection clothing, suggests giving the special entrepreneur in your life a vacation.

"Many entrepreneurs work really long hours and don't take much time off," he says. "So a vacation that's a complete break allows them to go away, have a great time, then return refreshed."

Barrow has less-expensive options for holiday gifts for small-business owners and entrepreneurs, too, such as a gym membership or at least a regular time to play a sport, such as tennis.

"Getting exercise is also very important for entrepreneurs." Or give tickets to a comedy club. "If you can take a break and laugh, then that's a great way to refresh and recharge."

And, once again, reflecting small-business owners' need to find great employees: "A professional membership to LinkedIn to use to help recruit people."

Anne Marie Bonneau, owner of the editing service 2020Revisions in Mountain View, Calif., wants a really, really good fountain pen. Why would such an old-fashioned tool be a good choice for an entrepreneur in the 21st century?

"There's no waste; I hate throwing away plastic pens," she says. "And it looks good if you're in meetings, pulling out a nice pen instead of a 29-cent plastic pen."

A weekly tennis date can help keep an entrepreneur in shape.(Photo: George Doyle, Getty Images)

Katie Dolan Dix, owner of Campannari Ice Cream in Mount Prospect, Ill., wants something far more precious but impossible to buy at any store: "Time. As a business owner, oftentimes we need more hours in a day or more days in the week. If you can send that, I'll be set for the holidays."

An off-the-wall gift with a sense of humor can be a big hit with the right person.

"It's always a d! elight as! an entrepreneur to receive a gift that re-frames what you do in a unique and unexpected way," says Kari Warberg Block, founder and chief executive of Earth-Kind in Bismarck, N.D. "One gift that I love to both give — and get — are handmade chocolate mice from Burdick. As the inventor of the first humane EPA-registered rodent-control product, handmade chocolate gourmet mice take it 'over the top' for me!"

Just remember to gauge your recipient's sense of humor.

Like many entrepreneurs, for Jen Hoey Padgett, chief executive of the Community Technology Alliance in San Jose, Calif., the best gift would be money for her start-up. Padgett's start-up, Beacon Pack, has a noble mission: to bring the Internet and online learning to undeveloped, remote areas by turning solar-powered backpacks into mobile hotspots.

As an entrepreneur myself, I know what Santa could bring that would thrill me: a Tesla Model S.

Since it's an electric car, I could use the money I save on gas for all the office supplies I need. It's innovative, the perfect image for an entrepreneur. And it's gorgeous!

If you plan to get me one — the cars start at $63,670 with a $7,500 federal tax credit — just let me know, and I'll happily send you my address.

Happy holidays!

OK, a Tesla Model S, which starts at $63,670, isn't exactly affordable for most gift givers, but think of the good you would do for the environment.(Photo: Dan MacMedan, USA TODAY)

Rhonda Abrams is president of The Planning Shop and publisher of books for entrepreneurs. Her most recent book is Entrepreneurship: A Real-World Approach. Register for Rhonda's free newsletter at PlanningShop.com. Twitter: @RhondaAbrams. Facebook: facebook.com/RhondaAbramsSmallBusiness.Copyrigh! t Rhonda ! Abrams 2013.

Small Cap CytRx Corporation (CYTR) Surges: Now What? IBB & XBI

On Wednesday, small cap biopharmaceutical stock CytRx Corporation (NASDAQ: CYTR) soared 68.2% after reporting positive results from a Phase 2B cancer drug trial, meaning its probably time to figure out what investors should do next plus take a look at the performance of biotech ETF benchmarks like the iShares NASDAQ Biotechnology Index ETF (NASDAQ: IBB) and SPDR S&P Biotech ETF (NYSEARCA: XBI).

What is CytRx Corporation?

Small cap CytRx Corporation is a biopharmaceutical research and development company specializing in oncology whose pipeline is focused on the clinical development of aldoxorubicin (formerly known as INNO-206), its improved version of the widely used chemotherapeutic agent doxorubicin. The company is expanding its pipeline of oncology candidates:

In addition, CytRx Corporation also has rights to two additional drug candidates, tamibarotene and bafetinib with the company having completed its evaluation of bafetinib in the ENABLE Phase 2 clinical trial in high-risk B-cell chronic lymphocytic leukemia (B-CLL). There are plans to seek a partner for further development of bafetinib plus the company is evaluating further development of tamibarotene. 

As for possible benchmark peers, the iShares NASDAQ Biotechnology Index ETF tracks the Nasdaq Biotechnology Index through 119 stocks and has a 77.18% weight in "biotechnology" and a 22.78% weight in Pharma while the SPDR S&P Biotech ETF tracks the S&P Biotechnology Select Industry Index with a 100% allocation in 57 biotechnology stocks.

What You Need to Know or Be Warned About CytRx Corporation?

On Wednesday, CytRx Corporation announced that its potential treatment aldoxorubicin had fared much better than an established chemotherapy in mid-stage testing on patients with soft-tissue sarcoma (a cancer that occurs in muscle, fat, blood vessels, tendons and other tissue) with the median progression-free survival being 8.4 months verses 4.7 months for patients who just took the chemotherapy doxorubicin (which has been on the market for decades). Investigators also found that the disease had not progressed after six months for 67% of aldoxorubicin patients verses 36% for patients in the other group.

According to the American Cancer Society, about 11,410 new soft tissue sarcomas would have been diagnosed (6,290 cases in males and 5,120 cases in females) in the USA this year and 4,390 Americans (2,500 males and 1,890 females) are expected to have died from the disease at the end of this year. Those are not particularly big numbers, but that may not matter if the company can charge a premium for aldoxorubicin – should it gain FDA approval.

With that in mind, a look at CytRx Corporation's financials reveals revenues of $100k (2012), $250k (2011), $100k (2010) and $9.5M (2009) for the past four year plus net losses of $17.96M (2012) and $14.42M (2011), net income of $41k (2010) and a net loss of $4.80M (2009). For this year, CytRx Corporation has reported revenues of zero (3 months ending 2013-09-30), $200k (3 months ending 2013-06-30) and zero (3 months ending 2013-03-31) plus net losses of $9.98M (3 months ending 2013-09-30), $3.42M (3 months ending 2013-06-30) and $6.86M (3 months ending 2013-03-31). At the end of September, CytRx Corporation had $23.04 million in Cash and Short Term Investments covering $13.33M in current liabilities. So the company has enough cash for at least a few more quarters.    

Share Performance: CytRx Corporation vs. IBB & XBI

On Wednesday, small cap CytRx Corporation surged 68.2% to $4.02 (CYTR has a 52 week trading range of $1.80 to $4.38 a share) for a market cap of $168.74 million plus the stock is up 115% since the start of the year and up 55.2% over the past five years. Here is a look at the long term performance of CytRx Corporation verses potential benchmarks like the iShares NASDAQ Biotechnology Index ETF and the SPDR S&P Biotech ETF:

As you can see from the above chart, CytRx Corporation has been a very inconsistent performer verses the iShares NASDAQ Biotechnology Index ETF and the SPDR S&P Biotech ETF. It should also be mentioned that according to Market Watch, shares of CytRx Corporation hit a closing high of nearly $260 at one point in early 1992 – meaning the stock has been around a long time but it has also been all over the place:

Hot Canadian Stocks For 2014

Finally, here is a look at the latest technical charts for all three investments:

The Bottom Line. If you made some money on yesterday's surge by small cap biopharmaceutical stock CytRx Corporation, then congratulations. However and if you are not already an investor, I would not exactly be rushing out to get in right now.

Fed's Stimulus Rollback Just Not a Big Deal Anymore

10 Best Medical Stocks To Buy Right Now

Andrew Harrer/Bloomberg via Getty ImagesFederal Reserve Chairman Ben S. Bernanke and vice chair Janet Yellen. Morgan Stanley interest rate strategist Matthew Hornbach is tired of the incessant chattering about "the taper" (the moment when the Fed starts to reduce the pace of monthly asset purchases). Whether it happens in December, January, or March is not that big of a deal anymore. Everyone knows it's coming and the ultimate impact of the timing at this point isn't a big deal. So what should you be talking about: Everything else the Fed does while it tapers. What other language tools will it use in conjunction with a slowing rate of asset purchases?

3 Stocks Building on Strong Fundamentals Into 2014

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This is the time of year when everyone is going to start looking for tax loss candidates to buy hoping for a quick recovery in the early weeks of 2014.

While the idea has some merit, a better approach might be to look for those stocks that have done very well and have the type of solid fundamentals that attract institutional buying pressure. In a year when the markets have rallied sharply, stocks that are down big like JC Penney (JCP) and Blackberry (BBRY) have performed poorly for a reason. They have poor fundamentals and a very uncertain outlook that is unlikely to attract buyers as the market advance continues to thin out.

Instead, you should look for the stocks that continue to build on solid fundamentals, with help from Portfolio Grader.

Shares of Boston Beer (SAM) have had a very good 2013 and have doubled in price so far. Conventional wisdom might tell you to take gains in the stock, but the truth is that fundamentals of SAM are still excellent. Analysts are still raising their estimates for both 2013 and 2014, and the company is showing excellent sales and earnings growth. The brewer is still seeing excellent consumer preference for its Sam Adams beer and Twisted Tea malt beverages. SAM stock was upgraded back in August and remains a “strong buy” as we head into the end of the year.

Sports bar chain Buffalo Wild Wings (BWLD) has had a stellar year, and BWLD stock price has gained more than 100%. It looks like the company will roll right into 2014 on a tear that should continue as people head out to watch all the Bowl games and NFL playoffs. Sales and earnings momentum are excellent, and the analysts are racing to catch up as a result of the chain’s success. BWLD has posted two consecutive earnings surprises, and estimates have been raised for the final three months of this year as well as all of 2014. The stock was upgraded to an “A” in November and remains a “strong buy” at the current price.

Another stock that has had a great year in 2013 is Taser (TASR). The company has seen strong order flow from military and police customers this year, and sales and earnings have just exploded along with TASR stock price. TASR stock price has doubled, but the earnings have more than tripled so far in 2013. Business has improved so rapidly that analysts have been caught flatfooted, and the company has posted three consecutive positive earnings surprises. The company is also seeing strong orders from police departments around the country for the new wearable cameras that have helped curb complaints and resolve accusations of bad behavior by officers. The stock is rated “B” by Portfolio Grader and remains a “buy.”

Buying stocks that are down in hopes of a bounce can lead to a portfolio full of companies whose fundamentals not justify investment right now. Rather than guess on a rebound, try to load your portfolio with shares of companies with strong fundamentals that are likely to attract buying pressure and continue moving higher in the new year.

Louis Navellier is the editor of Blue Chip Growth.

Consider This Small Cap Stock for December Uncertainty

10 Best Warren Buffett Stocks To Invest In Right Now

As we close out the final month of the year, Federal Reserve statements,  window dressing, tax selling and volatile commodities will boost cause uncertainty in the markets.

The Federal Reserve transition and decline in precious metals make this December especially hot.

GFI Group (NYSE: GFIG)  is a wholesale broker for institutions trading fixed income, rates, forex, equity and commodities. Because an uncertain market typically means high volatility, and high volatility typically means high volume, GFI Group is an investment vehicle to consider for the mentioned December trends.

The company's core business is based on over-the-counter trades, following a hybrid model which combines electronic trading platforms with voice brokers. New segments include GFI Swaps Exchange – GFI's SEF.

Federal Reserve

The FOMC minutes surprised investors last month, with the announcement that tapering is set to take place within the next several months. Perhaps more surprising was the muted market response. As Janet Yellen is set to take over for Bernanke, statements on her philosophies or economic expectations will almost certainly cause a spike in volume.

Window Dressing

Window dressing is an attempt by funds to appear to be better stock pickers to their investors. To do this, funds sell their losing positions and buy securities that outperformed the market before quarterly and annual reports.

Although this quarter has seen exceptional gains, many analysts and fund managers are calling the current market a bubble. One can speculate many of these managers will add positions into the end of year so their shareholders do not think they missed the bull run.

Related: Luxury Real Estate Foreclosures Up 61 Percent

Tax Selling

Because capital gains tax is based on realized returns, it is commonplace for investors to sell losing positions at the end of the year to receive the tax benefit.

In a year with few losers, this behavior will likely be reduced, taking away from trade volume. However, there may be a surge in selling winners when markets reopen in January as the tax deadline passes.

Precious Metals

GFI Group offers brokerage services for a wide range of commodities. With precious metals sliding down over the past month (gold spot down roughly 11 percent), fear and speculation are high. This kind of behaviour benefits GFI Group as trading spikes higher.

Precious metals reflect characteristics of all three situations discussed above. Funds holding gold are likely to reduce their positions to look better to shareholders. Entities with gold positions are likely to sell their stakes for the tax benefit, and the Federal Reserve has a huge impact on gold and silver via inflation.

Posted-In: Ben Bernanke Janet Yellen metals and mining precious metalsLong Ideas News Short Ideas Commodities Small Cap Economics Federal Reserve Markets Trading Ideas

(c) 2013 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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