Thursday, February 28, 2013

Chart Industries Beats on Both Top and Bottom Lines

Chart Industries (Nasdaq: GTLS  ) reported earnings on Feb. 28. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Chart Industries beat expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue grew significantly. Non-GAAP earnings per share grew significantly. GAAP earnings per share grew significantly.

Gross margins dropped, operating margins contracted, net margins grew.

Revenue details
Chart Industries reported revenue of $303.9 million. The 12 analysts polled by S&P Capital IQ wanted to see a top line of $277.6 million on the same basis. GAAP reported sales were 38% higher than the prior-year quarter's $219.6 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.80. The 13 earnings estimates compiled by S&P Capital IQ averaged $0.75 per share. Non-GAAP EPS of $0.80 for Q4 were 57% higher than the prior-year quarter's $0.51 per share. GAAP EPS of $0.69 for Q4 were 146% higher than the prior-year quarter's $0.28 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 28.1%, 120 basis points worse than the prior-year quarter. Operating margin was 10.8%, 110 basis points worse than the prior-year quarter. Net margin was 6.8%, 300 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $275.4 million. On the bottom line, the average EPS estimate is $0.74.

Next year's average estimate for revenue is $1.19 billion. The average EPS estimate is $3.52.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 381 members out of 394 rating the stock outperform, and 13 members rating it underperform. Among 80 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 77 give Chart Industries a green thumbs-up, and three give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Chart Industries is outperform, with an average price target of $79.08.

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  • Add Chart Industries to My Watchlist.

Important Franchisee Legalese

So-called “boilerplate” contract language that is agreed to by franchisees (or their attorneys) should not be taken likely. Sometimes this language can make the difference between, say, being insured for a natural disaster, or literally losing all of an investment. Force majeure and notice provisions are two areas that should garner special attention. Franchisees want to be sure they’re covered for their inability to perform services in the aftermath of a natural disaster, and they also want to make sure they clearly understand and agree to how important communications are delivered and received. For more on this continue reading the following article from Blue MauMau.

When attorneys negotiate commercial leases, often times they breeze through (or overlook entirely) the “boiler-plate” clauses. Think boilerplate provisions are unimportant? Ask if a franchise owner was affected by Hurricane Katrina, Superstorm Sandy, or the tornadoes that hit Bronson, Missouri.  Also, ask the attorney who did not catch a poorly drafted notice provision and it cost his client from being able to exercise a critical remedy under the lease. Last, ask a franchisee who is deemed to have “waived” a right in his lease. 

Force Majeure

When negotiating force majeure clauses, make sure the clause applies equally to all parties. Be sure to include specific examples of events that will excuse performance under the clause. The following are three basic categories of these kinds of events:

  • Natural disasters, such as earthquakes, hurricanes, floods, tornadoes and fires
  • Human events, such as wars, riots, terrorism, or other major upheavals
  • Performance failures outside the control of the contracting party, such as labor disputes and governmental restrictions
  • Here are two drafting considerations for force majeure provisions: 

  • Don’t obsess over what the force majeure clause should cover. Fire, flood, storm, earthquake, lighting, insurrection, terrorism, fear of terrorism, acts of God, meteor strike — the list of hypothetical “bad” events covered under force majeure could go on and on. The attorney should strongly consider adding a “catch all” phrase such as “or other similar catastrophic events unforeseen by the parties” or “…or other situations beyond the control of the parties.” That way the franchisee has a plausible argument that it may be covered for other situations that hamper performance even if they are not specifically listed. 

  • Attempt to broaden the definition. If the force majeure clause refers to situations beyond the control of the parties that make performance “illegal or impossible,” consider modifying that standard by adding “commercially impracticable.”

  • Notice

    It is imperative that the attorney reviewing the lease review the notice provision carefully to make sure it is both sufficient and practical for the deal at hand. Five key issues to consider are:

  • The form of the notice 
  • The method or methods by which notices must be sent
  • The time at which notices are deemed to be effectively given
  • Who should get the notice
  • How changes of address are to be effectively communicated
  • Many notice provisions will permit notices by first class mail, facsimile, and more often than not email as well. One should consider whether a notice that can have a dramatic impact (such as a notice of default, request for cure, etc.) should be specifically required to be sent via overnight courier or registered or certified mail. It is my experience that people pay more attention when they receive a FedEx package. Also, do you really want to leave it up to your client’s spam filter whether he or she gets notice of default?

    Regarding the time at which notices are deemed to be effectively given, there are two main considerations: 

  • Should notices be deemed to be given only if actually received, or upon some stated number of days after sending?
  • Is the number of days provided for realistic?
  • The answers to both are deal specific. For example, a common provision is “Five days after notice.” If a party has “five days after notice” to take action, and the notice provision says that notices are deemed to be given upon deposit in the U.S. mail, it is quite possible that two or three days of the five-day period will elapse before the party actually receives the notice (thereby reducing the actual response period to only two or three days). There is also the chance the mail parcel is lost, so this provision also deals with which party bears the risk of loss.

    With respect to who gets the notice, it is best practice to have the notice sent to the proper person at the company with a copy to counsel. Last,  a notice provision is not valid if served at the wrong address, so one should really think hard about making that a “special notice” that requires special delivery, such as certified mail or FedEx. The longer the length of the lease, the more important it is.

    Waiver provisions address acts or omissions that have the potential to function as a renouncement of rights and remedies otherwise available under the lease. In other words, it is the voluntary abandonment or relinquishment of a known right. By including waiver provisions in a lease, the parties expressly agree that specific acts and omissions that could constitute a waiver will not be deemed a waiver. Another basic function of waiver provisions is to give a franchisee some assurance that its failure to require the landlord’s strict adherence to a contract term will not result in a complete and unintended loss of the franchisee’s contract rights if it later decides that strict performance is desirable. For example, if a franchisee was entitled to any number of successive five-year renewal terms under a lease, and the lease contained a properly drafted waiver provision, the landlord could not prevent the franchisee from exercising its second five-year renewal term based on the franchisee’s default(s) during the original term.

    Nordstrom Increases Buyback Program, Ups Dividend

    Department store retailer Nordstrom (NYSE: JWN  ) is initiating a share repurchase program of up to $800 million that will run through March 2015 and is increasing its quarterly dividend to $0.30 per share.

    The buyback plan adds to an existing program that still has $344 million outstanding on it, giving the board the authority to buy back more than $1.1 billion in stock. The existing plan runs through Feb. 1, 2014, while the new plan runs through March 1, 2015.

    The dividend, which will rise from its current $0.27 per share, clocks an 11% increase and will be�payable on March 22 to shareholders of record on March 15.�This will be the fourth consecutive year Nordstrom has increased its payout.

    JWN Stock Buybacks data by YCharts.

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    3 FTSE 100 Shares Hitting New Highs

    LONDON -- The FTSE 100 (FTSEINDICES: ^FTSE  ) is perking up a bit today, rising 0.32% to 6,346 by 8:20 a.m. EST as fears raised by the Italian election stalemate seem to be fading. After Tuesday's 85-point slump, the index of top U.K. shares has recovered almost all of that loss after a strong closing session on Wednesday resulted in a gain of 56 points.

    If the FTSE 100 is still off from its recent high of 6,412 points, the same can't be said of some of its major constituents. Here are three setting new records today.

    HSBC (LSE: HSBA  ) (NYSE: HBC  )
    Shares in high-street bank HSBC Holdings hit a new 52-week high of 739.9 pence today ahead of full-year results due to be released on Monday. HSBC has come out of the crisis pretty well, and though there's a 5% to 10% fall in earnings per share expected, we should still see a dividend yield in excess of 3.5%.

    Forecasts put the shares on a price-to-earnings ratio of 13, and with future earnings growth very likely, that looks set to fall to around 10 by 2014 -- and the dividend yield is forecast to rise to nearly 5% over the same period.

    ARM (LSE: ARM  )
    Yet another new high for ARM Holdings shares? Yes indeed, as the price broke its previous 52-week closing high to reach 959.5 pence this morning.

    That takes the chip designer's shares up more than 60% over the past few years, putting them on a forward P/E of 50 based on forecast 2013 earnings. That looks pretty high on the face of it, but who can tell where the demand for ARM chip designs will end?

    IMI (LSE: IMI  )
    Industrial engineer IMI saw its share price set a new record today, too, reaching 1,223 pence in early trading before dropping back a bit to 1,215 pence. We've had steadily rising dividends from IMI for a few years, and that looks set to continue for the next couple of years, with a 2.7% yield expected for December 2012.

    The firm's last interim update, in November, told us that things were in line with expectations, with revenue 4% ahead for the 10 months to date. Full-year results are due on March 7.

    Dividends can add nicely to your investment returns -- they can be spent or reinvested, according to your needs. Whether you're investing for income or growth, good old cash is always welcome. And that's why I recommend the brand-new Fool report "The Motley Fool's Top Income Share For 2013," in which our top analysts identify a share that they believe will provide handsome dividend income for years to come. But it will only be available for a limited period, so click here to get your copy today.

    Is Now the Time to Buy GlaxoSmithKline?

    LONDON -- I'm always searching for shares that can help ordinary investors like you make money from the stock market.

    So right now I am trawling through the FTSE 100 and giving my verdict on every member of the blue-chip index. Simply put, I'm hoping to pinpoint the very best buying opportunities in today's uncertain market.

    Today I am looking at�GlaxoSmithKline� (LSE: GSK  ) (NYSE: GSK  ) to determine whether you should consider buying the shares at 1,445 pence.

    I am assessing each company on several ratios:

    • Price/Earnings (P/E):�Does the share look good value when compared against its competitors?
    • Price Earnings Growth (PEG):�Does the share look good value factoring in predicted growth?
    • Yield:�Does the share provide a solid income for investors?
    • Dividend Cover:�Is the dividend sustainable?

    So let's look at the numbers:

    Stock Price 3-yr EPS growth Projected P/E PEG Yield 3-yr dividend growth Dividend cover
    GlaxoSmithKline1,445 pence110%12.445.1%14%1.5

    The consensus analyst estimate for next year's earnings per share is 116p (3% growth) and dividend per share is 77p (5% growth).

    Firstly, I must say that although GlaxoSmithKline's three-year earnings-per-share growth is 110%, the company had an extremely bad year in 2010, and this has skewed my figures. I believe over a four-year period, GlaxoSmithKline's EPS has fallen 7%.

    Anyway, trading on a projected P/E of 12.4, GlaxoSmithKline appears cheaper than its peers in the pharmaceutical sector, which are currently trading on an average P/E of around 13.6.

    Unfortunately, GlaxoSmithKline's P/E and low single-digit growth rate give a PEG ratio of around 4, which implies the share price is expensive for the near-term earnings growth the firm is expected to produce.

    Offering a 5.1% yield, GlaxoSmithKline's dividend yield is above the pharmaceutical sector average of 4.8%. Furthermore, GlaxoSmithKline has a three-year compounded dividend growth rate of 14%, implying the yield could continue to outpace that of its peers.

    However, the dividend is only one-and-a-half times covered, which does not give GSK much room for further payout growth.

    Lastly, GlaxoSmithKline has a strong history of returning cash to shareholders. During 2012 alone, GlaxoSmithKline returned 8.8 billion pounds to shareholders through share buybacks and dividends.

    Growth is slow, but should you buy GlaxoSmithKline for its dividend?
    Like its close competitor�AstraZeneca, GlaxoSmithKline's earnings are currently coming under pressure due to the loss of patents covering various over-the-counter treatments and falling sales in Europe.

    That said, GlaxoSmithKline is still reporting sales growth in emerging markets. In particular, during the last year alone, sales grew 17% in China and emerging market sales now account for 26% of the group's total sales.

    Furthermore, GlaxoSmithKline is taking action to cut costs and is targeting yearly cost savings of 1 billion pounds by 2016. In addition, GlaxoSmithKline has a strong product pipeline, and 14 new treatments are expected to be on sale within the next two years.

    The company is also seeking acquisitions to bolster organic growth and recently acquired U.S.-based Human Genome Sciences, which I believe should further boost the company's pipeline and longer-term prospects.

    Overall, despite the current challenges, I believe GlaxoSmithKline's future is looking up, and the company has a solid history of returning cash to shareholders. So all in all, I feel now looks to be a good time to buy GlaxoSmithKline at 1,455 pence.

    More FTSE opportunities
    As well as GlaxoSmithKline, I am also positive on the FTSE shares highlighted in "8 Dividend Plays Held by Britain's Super Investor." This exclusive report reveals the�favorite�income stocks owned by�Neil Woodford�-- the City legend whose portfolios have thrashed the FTSE All-Share by 200% during the 15 years to October 2012.

    The report, which explains the full investing logic behind Woodford's dividend strategy and his preferred blue chips, is free to all private investors.�Just click here for your copy. But do hurry, as the report is available for a limited time only.

    In the meantime, please stay tuned for my next verdict on a FTSE 100 share.

    Best Stocks To Invest In 2/5/2013-1

    ORIT, Oritani Financial Corp.

    For the three months ended September 30, 2012, ORIT posted net income of $9.2 million, or $0.22 per basic and fully diluted share, ompared to net income of $7.3 million, or $0.15 per basic and fully diluted share, in the same period the prior year.

    ORIT is the holding company for Oritani Bank, a New Jersey state chartered bank offering a full range of retail and commercial loan and deposit products.

    More about ORIT at www.oritani.com.

    STEL, StellarOne Corporation

    For the third quarter 2012, STEL posted net income available to common shareholders of $5.6 million, or $0.24 net income per diluted common share, a 41.7% increase over net income available to common shareholders of $3.9 million or $0.17 per diluted common share recognized during the same period the prior year.

    STEL is a traditional community bank, offering a full range of business and consumer banking services, including trust and wealth management services.

    More about STEL at www.StellarOne.com

    The advantages that are derived through Internet advertising far exceed that of traditional print publication. Right from costs, availability, wider consumer markets, and the potential for increased profit margins, internet advertising has the upper hand.

    Crown Equity Holdings Inc., (CRWE) offers advertising branding and marketing services as a worldwide online multi-media publisher with its digital network of websites and focuses on the distribution of information for the purpose of bringing together a targeted audience and the advertisers that want to reach them.

    CRWE�s advertising services cover and connect a range of marketing specialties, as well as provide search engine optimization for clients interested in online media awareness.

    CRWE�s division CRWE AD-Services (www.crwe-adservices.com), is a full service multimedia advertising company specializing in internet marketing. It provides modern and unique advertising campaigns, dedicated to offering the most cost effective advertising solutions.

    More about CRWE at www.crownequityholdings.com.

    THIS IS NOT A RECOMMENDATION TO BUY OR SELL ANY SECURITY!

    Alaska Air: Good Value and Buyout Potential

    Alaska Air Group (NYSE: ALK  ) has been a bright spot in the U.S. airline industry for the past several years. The company has used its strong franchise in the Pacific Northwest to grow revenue and profit for several consecutive years, as noted in a recent shareholder presentation. Alaska also has one of the best capital structures among U.S. airlines; only Allegiant Travel (NASDAQ: ALGT  ) , which has a "capital-light" strategy, has a clear advantage over Alaska on that score. What's more, Alaska ranks in the top three for return on invested capital, and pre-tax margin. Again, only Allegiant is better on both counts.

    Yet, despite Alaska's strong fundamentals, the company trades at a much lower valuation than Allegiant:

    Alaska Air and Allegiant Travel Relative Valuation, data by YCharts

    Even though Alaska shares trade near all-time highs, the company is still valued at only eight times forward (2014) earnings. Given Alaska's modest debt levels and strong pre-tax margin, the company is a relatively safe investment when compared to other airline stocks. Furthermore, Alaska has continued growth opportunities, and is returning cash to shareholders. Lastly, Alaska's strong position in Seattle could make it an attractive takeover target, particularly for Delta Air Lines (NYSE: DAL  ) .

    Alaska's growth strategy
    During the past decade, Alaska has transformed itself from a glorified regional carrier serving the Pacific Northwest into a key player in numerous West Coast markets�. As recently as 2007, more than half of Alaska's capacity was deployed on routes between West Coast cities. The company has since diversified its network by adding a variety of transcontinental routes (estimated at 22% of 2013 capacity, up from 14% in 2007), as well as numerous flights to Hawaii (20% of capacity today, compared to ~1% in 2007�).

    Alaska's acquisition of new longer-range Boeing (NYSE: BA  ) 737-800 and 737-900ER aircraft has enabled the company to expand in the transcontinental and Hawaii markets�. These planes have longer ranges than previous versions of the Boeing 737, allowing them to fly nonstop from Seattle (or other West Coast destinations) to the East Coast. Moreover, they are eligible for ETOPS certification, a process that allows them to be flown on overwater routes (e.g. to Hawaii).

    This expansion of Alaska's route network has allowed the company to grow revenue by approximately 35% since 2009�. Going forward, Alaska will continue to add Boeing 737s; the carrier has approximately 75 aircraft on order, including 37 orders for Boeing's re-engined and more fuel-efficient 737 MAX�. This will provide a platform for further growth, while reducing costs.

    The recipe for a high pre-tax margin
    How has Alaska managed to consistently produce a pre-tax margin near the top of the airline industry? Competitors such as Allegiant and Spirit (NASDAQ: SAVE  ) have achieved high profit margins by paying workers less than the industry average, charging fees for just about everything (including carry-on baggage), and utilizing high-density aircraft configurations at the expense of passenger comfort. Alaska, by contrast, is a legacy carrier with relatively high labor costs and expensive aircraft.

    The "secret sauce" for Alaska's profitability is its mix of business and leisure travel. Much of Alaska's recent expansion has been focused on warm-weather leisure markets such as Hawaii and Mexico�. Those destinations do not have the same seasonality as mainland and Alaska routes; they perform relatively well in the fall and winter. Alaska can therefore reduce frequencies on mainland and Alaska routes during off-peak periods without leaving capacity idle; instead, the carrier offers additional seasonal service to Mexico and Hawaii.

    The next airline M&A target?
    Alaska was one of five carriers highlighted last year by American Airlines as a potential merger partner�. With American now apparently set to merge with US Airways (NYSE: LCC  ) as early as this week, some industry observers think that the recent period of airline consolidation is over. However, Alaska is a small enough carrier that it could probably merge with any of the three major carriers without causing major antitrust problems.

    Moreover, the company's strong position in Seattle makes it a very attractive acquisition target, particularly for Delta. Alaska currently carries approximately 52% of passenger traffic at Sea-Tac Airport�. Delta is a distant second, with 11% of the market. Alaska and Delta already have a codeshare partnership, which allows passengers to connect in Seattle between Alaska and Delta flights with a single ticket. Delta is using this partnership to build Seattle into a major international gateway�. Delta already flies nonstop from Seattle to Paris, Amsterdam, Tokyo-Narita, Osaka, and Beijing, and the airline plans to begin service to Tokyo-Haneda and Shanghai later this year.

    Acquiring Alaska would allow Delta to take even better advantage of Alaska's Seattle-based route network. Seattle is ideally located for flights to Asia, as it sits in the northwest corner of the continental U.S. Building a hub in Seattle could help Delta increase its market share in Asia, a market that is likely to experience higher growth than North America or Europe.

    Conclusion
    Alaska's mix of business and leisure travel, and its strong position on the West Coast, have allowed the company to deliver results that are among the best in the airline industry. Nevertheless, the company trades for a very reasonable valuation of eight times expected 2014 earnings. Lastly, Alaska could be a potential buyout target, as control of the Seattle market would allow Delta (or another major carrier) to build a successful Asian gateway there. For all of these reasons, Alaska Air is a strong investment candidate, at present.

    Are you looking for other good investment candidates for this year? The Motley Fool's chief investment officer has selected his No. 1 stock for 2013. Find out which stock it is in our brand-new free report, "The Motley Fool's Top Stock for 2013." I invite you to take a copy, free for a limited time. Just click here to access the report and find out the name of this under-the-radar company.

    Top Stocks For 2/28/2013-15

    ac

    EQ Labs, Inc. (Pink Sheets:EQLB) will launch a nationwide promotion at the Las Vegas Boulevard location of Walgreens on Labor Day weekend. The promotion will allow one lucky purchaser of the EQ Smart Energy Drink to receive a free personal poker seminar from poker celebrity Vanessa Rousso. Ms. Rousso has an international reputation as one of the best poker players in the world.

    Another lucky winner will receive a personal thrill ride from champion Baja racer, T.J. Flores, later this year. T.J. and the LVDC Race Team, based out of Las Vegas, NV, are the 2008 Over all Off-road Champs and the winner of the 2008 and 2009 Mint 400. The company intends to add at least one additional celebrity to the promotion on Labor Day weekend.

    The Company will use this promotion to begin a national rollout of its energy drink in additional Walgreens stores. In addition to Walgreens, EQ Energy drink is sold at Best Buy, 7-Eleven, and other leading retailers.

    Maurice Owens, Chief Executive Officer of EQ Labs, commented, “We intend to use our celebrity relationships to build the EQ brand not only in North America but also in Europe. We believe we’ll attract a major crowd at this event. Ms. Rousso and Mr. Flores will both appear personally to sign autographs so we invite all fans of EQ Energy drink to stop by on September 4th to meet Ms. Rousso and Mr. Flores and the EQ management team.”

    Leading Brands (Nasdaq:LBIX) is the only fully integrated beverage company in North America, allowing the Company a unique opportunity to capitalize on its resources, maintain its competitive advantages and benefit from consumer trends. Leading Brands’ expertise in all stages of the product lifecycle, from building brands to bringing them to market, and from beverage bottling to beverage distribution makes them a leader in the industry.

    The Company has developed a coast-to-coast distribution network, as well as an established portfolio of proprietary brands and a wide range of licensed products. The company is also a significant producer of private label products and a beverage distributor and co-packer for major international beverage companies.

    The company offers its products under the TrueBlue, TrueBlue Lite, PureBlue, Infinite Health Water, Stoked Energy Drink, Die Hard Sports Energy Drink, and Caesars Caesar Cocktail brands. It also licenses various brands, which include BooKoo Energy Drinks, Icelandic Glacial Water, and Stewarts Fountain Classics.

    Hansen’s Natural Corporation (Nasdaq:HANS) is a leading marketer of all natural alternative as well as functional beverages. The Brand is recognized nationally.

    Products marketed by the Corporation include: Hansen’s Natural Sodas, Signature Sodas, fruit juice Smoothies, Energy drinks, Energade energy sports drinks, E�0 Energy Water, functional drinks, Sparkling Lemonades and Orangeades, multi-vitamin juice drinks in aseptic packaging, Junior Juice juice, iced teas, lemonades and juice cocktails, apple juice, cider and juice blends, Blue Sky brand carbonated beverages, Monster Energy brand energy drinks, Lost Energy brand energy drinks and Rumba brand energy drinks, and Joker Energy brand energy drinks.

    Hansen’s Natural Soda is a “better-for-you”, great-tasting and affordable premium soda. You can feel good about serving these all-natural sodas to your family and friends because Hansen’s Natural Sodas contain no artificial colors or flavors, no sodium, no caffeine, and no preservatives. All Hansen’s Natural Sodas are gluten and dairy free. Hansen’s Natural Sodas are available in a variety of great-tasting natural flavors derived from extracts of exotic fruits and spices from around the world.

    Hansen’s hopes every beverage you drink with the Hansen’s name on it puts a smile on your face. That’s our measure of success. Naturally.

    The mission of Hansen Beverage Company is to satisfy consumer�s needs for superior quality and great tasting, healthy, natural and functional beverages. Hansen’s beverages will be positioned as an upscale brand and will often be marketed at a premium to competitive mainstream products.

    SodaStream Partners With Ocean Spray

    On Wednesday, home carbonization system manufacturer and supplier SodaStream International (NASDAQ: SODA  ) announced it has signed a "strategic agreement" with privately held Ocean Spray Cranberries.

    The import of the agreement, of course, is to allow SodaStream to license the Ocean Spray brand to develop to "a portfolio of juice blend concentrates co-developed exclusively for the SodaStream home beverage carbonation system." In other words: SodaStream is going to start selling carbonated cranberry juice soda.

    Beginning sometime in the second half of this year, SodaStream machine owners should be able to create their own blends of regular and diet Cranberry, Cranberry-Grape, and Cranberry-Raspberry sodas at home. These are described as the "initial flavors," so it's likely that if this first batch is successful, other flavors will be forthcoming in future years.

    Financial terms of the licensing agreement were not disclosed. Regardless, SodaStream shares reacted positively to the news, rising 4.6% in Wednesday trading to close at $48.50.

    More Expert Advice from The Motley Fool

    SodaStream's carbonation technology sounds simple, right? Well, this razor-and-blade company offers an intriguing opportunity for growth that may be harder to duplicate than you might think. Our premium report on SodaStream explains the opportunities as well as the risks in the company. The report comes with a years worth of updates, so just click here to get started.

    Willing suspension of benefits can boost Social Security payoff

    I had a great question from an adviser in Hawaii the other day about one of his clients who had collected her Social Security benefits early at 62 and now regrets her decision.

    J.R. wants to know if his client Carmen, who turned 66 last September, can voluntarily suspend her Social Security benefits. Carmen collects her benefits based on her own earnings record and even though they were reduced by 25% because she collected them four years early, they are still worth more than half of her husband's amount. That means she does not currently collecting a spousal benefit. Carmen's husband is 69.

    “I seem to remember an article you wrote not too long ago suggesting that Carmen might be able to partially make up for her reduced benefit amount by suspending her current benefits and allowing them to grow at 8% per year until age 70,” J.R. wrote in an e-mail. “I suggested to Carmen that if she does this, her Social Security benefit at age 70 might be fairly close to the amount she would have received if she had elected to wait until FRA to file for benefits.”

    That's right, J.R. The Social Security Administration notes on its website: If you are already entitled to benefits, you may voluntarily suspend current or future retirement benefit payments up to age 70.

    But the next part of J.R's e-mail amounted to wishful thinking.

    “In the meantime, she would be entitled to receive half of her husband's benefit,” he wrote. “Is my understanding of the Social Security rules with respect to Carmen's situation correct?” he added.

    Unfortunately, the second assumption is not correct. Because Carmen started collecting her own retirement benefits at 62, she forfeited the right to restrict her claim to spousal benefits only, which she could have done if she had waited until her normal retirement age of 66 to claim benefits.

    Now that she is 66, she can voluntarily suspend her Social Security benefit and they will continue to accrue delayed retirement credits up until age 70 when she can resume collecting them. But she will not be able to claim spousal benefits in the interim.

    The math works like this: For every month you delay collecting benefits between your normal retirement age—66 in Carmen's case— up until 70, you earn a delayed retirement credit worth 2/3 of 1% increasing you basic benefit as much as 32% (48 months x .66% = 32%) .

    Because Carmen turned 66 five months ago, if she suspended her benefits today, she could delay collecting benefits for 43 months until she turns 70. That would boost her retirement benefit by about 28% (43 x .66).

    But there's another wrinkle Carmen has to worry about: Medicare.

    Medicare Part B premiums are normally deducted from Social Security retirement benefits. If Carmen suspends her Social Security benefits, she will have to pay for her Medicare Part B premiums directly to the Centers for Medicare & Medicaid. However, she can arrange for CMS to debt her bank account each month.

    The final part of J.R.'s e-mail was a bit disturbing. Carmen called the Social Security help line twice to ask about her options. She received a different answer each time. And that's not unusual.

    “In a couple of other recent cases, other clients have received conflicting answers from Social Security representatives, too,” J.R. wrote. “What is an adviser to do?”

    I'm afraid I don't have a good answer of how to deal with conflicting information. But I'm happy to serve as a tie-breaker and will try to uncover the right answer from the experts I deal with at Social Security headquarters.

    Wednesday, February 27, 2013

    Dow Rises 175 Points; Wipes Out Monday’s Losses

    ReutersKeep talking

    The Dow Jones Industrial Average rose 175.24 points on Wednesday, a 1.26% gain that puts the index up 0.5% for the week; the Dow is up 291 points in the past two days. Monday’s 216-point loss seems a long time ago.

    Today’s performance was the second-best session of the year, behind Jan. 2, and propelled the Dow to close at 14,075.37, its highest level since Oct. 12 2007. It’s now just 0.63% of its nominal record closing high of 14,164.53, from Oct. 9, 2007. We’ve now seen four straight sessions of triple-digit moves.

    WSJ MarketBeat’s Paul Vigna attributed the climb to the dovish Congressional testimony by Fed Chairman Ben Bernanke over the past two days, as it allayed fears the Fed may stop its market-friendly quantitative easing program any time soon. The fact that, despite a confused election outcome, Italy hasn’t collapsed into a chaos unseen since the Visigoths came calling also probably helps.

    The Standard & Poor’s 500 index also saw a nice gain, rising 1.27%; the index has gained 1.89% in the past two days and is now up a slight fraction this week. The Russell 2000 rose 1.1% today to close at 909.92.

    Raytheon to Equip UAVs with MALD Missiles

    Earlier this week, defense contractor Raytheon (NYSE: RTN  ) announced that it is working in cooperation with unmanned aerial vehicle manufacturer General Atomics Aeronautical Systems to equip the latter's B/MQ-9 Reaper UAV, the armed variant of the Predator, with Raytheon's own Miniature Air Launched Decoy, or MALD, missile.

    In a statement, Raytheon noted that the companies have already completed the ground verification test phase of the project and estimate that before the year is out, Reapers will be cleared to fly, armed with MALD payloads.

    Measuring 9.5 feet long, weighing only 285 pounds, and possessing a 500-mile range, MALD is a sort of hybrid drone/missile. Like a drone, it can be operated remotely after launch and told where to fly to. Like a missile, it is low-cost and consumable -- once launched, it fulfills its function and then crashes. It cannot be recovered and relaunched.

    As for what its "function" is, MALD is basically a decoy missile, emitting electronic signals that make it appear to be a full-sized fighter jet on enemy radars, thus diverting anti-aircraft fire from more valuable targets. A more advanced version of the missile, dubbed MALD-J, adds a jamming function so that the device not only mimics a U.S. aircraft but also jams enemy radar to further disrupt enemy air defenses.

    Both missiles are already in U.S. arsenals, with the more recent MALD-J having begun shipment last fall.

    Verisk Analytics Beats on Both Top and Bottom Lines

    Verisk Analytics (Nasdaq: VRSK  ) reported earnings on Feb. 26. Here are the numbers you need to know.

    The 10-second takeaway
    For the quarter ended Dec. 31 (Q4), Verisk Analytics beat slightly on revenues and beat expectations on earnings per share.

    Compared to the prior-year quarter, revenue expanded significantly. Non-GAAP earnings per share grew significantly. GAAP earnings per share grew significantly.

    Gross margins dropped, operating margins dropped, net margins grew.

    Revenue details
    Verisk Analytics tallied revenue of $415.7 million. The 12 analysts polled by S&P Capital IQ expected to see sales of $409.6 million on the same basis. GAAP reported sales were 18% higher than the prior-year quarter's $351.6 million.

    Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

    EPS details
    EPS came in at $0.63. The 13 earnings estimates compiled by S&P Capital IQ anticipated $0.54 per share. Non-GAAP EPS of $0.63 for Q4 were 34% higher than the prior-year quarter's $0.47 per share. GAAP EPS of $0.57 for Q4 were 21% higher than the prior-year quarter's $0.47 per share.

    Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

    Margin details
    For the quarter, gross margin was 59.1%, 100 basis points worse than the prior-year quarter. Operating margin was 38.2%, 160 basis points worse than the prior-year quarter. Net margin was 23.6%, 80 basis points better than the prior-year quarter.

    Looking ahead
    Next quarter's average estimate for revenue is $403.5 million. On the bottom line, the average EPS estimate is $0.53.

    Next year's average estimate for revenue is $1.71 billion. The average EPS estimate is $2.29.

    Investor sentiment
    The stock has a three-star rating (out of five) at Motley Fool CAPS, with 81 members out of 92 rating the stock outperform, and 11 members rating it underperform. Among 29 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 27 give Verisk Analytics a green thumbs-up, and two give it a red thumbs-down.

    Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Verisk Analytics is outperform, with an average price target of $53.55.

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    • Add Verisk Analytics to My Watchlist.

    TiVo Goes Negative

    TiVo (Nasdaq: TIVO  ) reported earnings on Feb. 26. Here are the numbers you need to know.

    The 10-second takeaway
    For the quarter ended Jan. 31 (Q4), TiVo missed estimates on revenues and exceeded expectations on earnings per share.

    Compared to the prior-year quarter, revenue increased significantly. Non-GAAP loss per share contracted. GAAP earnings per share dropped to a loss.

    Gross margins grew, operating margins increased, net margins dropped.

    Revenue details
    TiVo reported revenue of $65.7 million. The eight analysts polled by S&P Capital IQ predicted a top line of $67.5 million on the same basis. GAAP reported sales were 34% higher than the prior-year quarter's $66.5 million.

    Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

    EPS details
    EPS came in at -$0.04. The nine earnings estimates compiled by S&P Capital IQ predicted -$0.15 per share. Non-GAAP EPS were -$0.04 for Q4 against -$0.36 per share for the prior-year quarter. GAAP EPS were -$0.13 for Q4 against $0.06 per share for the prior-year quarter.

    Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

    Margin details
    For the quarter, gross margin was 54.1%, 460 basis points better than the prior-year quarter. Operating margin was -16.5%, much better than the prior-year quarter. Net margin was -17.8%, much worse than the prior-year quarter.

    Looking ahead
    Next quarter's average estimate for revenue is $72.1 million. On the bottom line, the average EPS estimate is -$0.11.

    Next year's average estimate for revenue is $286.3 million. The average EPS estimate is -$0.29.

    Investor sentiment
    The stock has a one-star rating (out of five) at Motley Fool CAPS, with 823 members out of 1,085 rating the stock outperform, and 262 members rating it underperform. Among 263 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 194 give TiVo a green thumbs-up, and 69 give it a red thumbs-down.

    Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on TiVo is outperform, with an average price target of $15.19.

    Software and computerized services are being consumed in radically different ways, on new and increasingly mobile devices. Many old leaders will be left behind. Whether or not TiVo makes the coming cut, you should check out the company that Motley Fool analysts expect to lead the pack in "The Next Trillion-dollar Revolution." Click here for instant access to this free report.

    • Add TiVo to My Watchlist.

    NuVasive Beats on Both Top and Bottom Lines

    NuVasive (Nasdaq: NUVA  ) reported earnings on Feb. 26. Here are the numbers you need to know.

    The 10-second takeaway
    For the quarter ended Dec. 31 (Q4), NuVasive beat expectations on revenues and beat expectations on earnings per share.

    Compared to the prior-year quarter, revenue grew. Non-GAAP earnings per share expanded significantly. GAAP loss per share shrank.

    Gross margins contracted, operating margins grew, net margins expanded.

    Revenue details
    NuVasive logged revenue of $165.8 million. The 23 analysts polled by S&P Capital IQ foresaw revenue of $156.2 million on the same basis. GAAP reported sales were 10% higher than the prior-year quarter's $150.2 million.

    Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

    EPS details
    EPS came in at $0.34. The 22 earnings estimates compiled by S&P Capital IQ forecast $0.21 per share. Non-GAAP EPS of $0.34 for Q4 were 26% higher than the prior-year quarter's $0.27 per share. GAAP EPS were -$0.06 for Q4 against -$0.24 per share for the prior-year quarter.

    Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

    Margin details
    For the quarter, gross margin was 74.5%, 80 basis points worse than the prior-year quarter. Operating margin was 8.4%, 210 basis points better than the prior-year quarter. Net margin was -1.7%, 500 basis points better than the prior-year quarter.

    Looking ahead
    Next quarter's average estimate for revenue is $156.0 million. On the bottom line, the average EPS estimate is $0.18.

    Next year's average estimate for revenue is $653.2 million. The average EPS estimate is $0.90.

    Investor sentiment
    The stock has a five-star rating (out of five) at Motley Fool CAPS, with 171 members out of 190 rating the stock outperform, and 19 members rating it underperform. Among 43 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 39 give NuVasive a green thumbs-up, and four give it a red thumbs-down.

    Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on NuVasive is outperform, with an average price target of $19.56.

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    Why Vitamin Shoppe Shares Got Slammed

    Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

    What: Shares of nutritional products retailer Vitamin Shoppe (NYSE: VSI  ) crashed 20% today after its quarterly results disappointed Wall Street.

    So what: The stock has soared over the past year on strong sales momentum, but a clear fourth-quarter revenue miss -- $218.9 million versus the consensus of $223.2 million -- is triggering concerns over slowing growth going forward. While management blamed the miss on Hurricane Sandy, analysts are being forced to recalibrate their valuation estimates in case there are more serious competitive and consumer demand issues at play.

    Now what: For 2013, management said it plans to open about 50 new stores and maintained its same-store sales outlook of mid-single-digit growth. "Initiatives undertaken in the past year, including accelerating new product development, improving our customers' online shopping experience, testing small market stores, and opening our first stores in Canada, have positioned us well for long-term sustainable growth," said CEO Tony Truesdale. With the stock still up more than 20% from its 52-week lows and trading at a 20-plus forward P/E, however, I'd wait for even more of a pullback before buying into that bull talk.

    Quest Diagnostics Declares Dividend

    Quest Diagnostics (NYSE: DGX  ) has declared its latest quarterly dividend, keeping it steady with its previous payout. The company is to pay $0.30 per share of its common stock on April 16 to shareholders of record as of April 2. In doing so, the company is matching its previous disbursement in January.

    In each quarter of 2012, the company paid $0.17 per share. Before that, it distributed $0.10 in every quarter from April 2006 to October 2011.

    The new dividend annualizes to $1.20 per share. That yields 2.2% at the company's closing stock price of $55.80 on the day the declaration was made.

    Asia stocks mostly advance on U.S. cues

    HONG KONG (MarketWatch) � Stocks in Asia mostly rose Wednesday as U.S. economic data and comments from Federal Reserve chief Ben Bernanke helped lift the mood in global markets.

    Hong Kong�s Hang Seng Index HK:HSI �advanced 0.3% and China�s Shanghai Composite CN:000001 �rose 0.9%.

    South Korea�s Kospi KR:SEU �climbed 0.2%, Australia�s S&P/ASX 200 AU:XJO �advanced 0.7% and Taiwan�s Taiex XX:Y9999 �added 0.2%, while Japan�s Nikkei Stock Average JP:100000018 �defied to broad trend to decline 1.3%.

    Reuters

    Setting the stage for gains in Asia, shares climbed in the U.S. Tuesday, after housing data was well received. Additionally, Federal Reserve chairman Ben Bernanke defended the U.S. central bank�s monetary policy, sending a strong signal on ongoing asset purchases. Read: U.S. stocks build gains on housing data.

    �In the current economic environment, the benefits of asset purchases [�] are clear,� Bernanke said in remarks to the Senate Banking Committee. Read: Bernanke: QE benefits clear, risks manageable.

    �Markets welcomed Bernanke�s Congressional testimony, in which he put himself firmly on the dovish side. ... His comments reduced concerns over early withdrawal of monetary stimulus in the U.S. and provided hope that easy financing available for emerging market assets will remain in place,� said Dariusz.Kowalczyk, strategist at Credit Agricole.

    Most regional stocks had suffered on Tuesday after Italy�s general election ended in stalemate, triggering concerns about another flare-up of euro-zone debt woes.

    �As the political problems in Europe are likely to be prolonged, the U.S. sequester discussions are set to heat up and markets have had a very good run, volatility may persist for several weeks,� said Matthew Sherwood, Perpetual Investment�s investment market research head.

    Japanese stocks continued to struggle as the dollar USDJPY reached 91.72 yen, down from �91.88 in late North American trading on Tuesday, and well off a level of more than �94 reached intraday on Monday. Read: Dollar gains after upbeat data, Bernanke.

    Click to Play Bernanke, Senate tussle on inflation

    Simon Constable and Jon Hilsenrath wrap up Fed Chairman Ben Bernanke's Senate testimony.

    Exporters came under selling pressure in Tokyo. Panasonic Corp. JP:6752 PC �declined 1.8%, while in the auto sector, Nissan Motor Co. JP:7201 NSANY �lost 1.5% and Honda Motor Co. JP:7267 HMC fell 2.5%.

    The rest of the region advanced, however, with AIA Group Ltd. HK:1299 �AAGIY �jumping 4.1% in Hong Kong after the insurer posted solid results for 2012. Read: AIA's 2012 profit rises 89%, beats estimates.

    China Construction Bank Corp. HK:939 CICHY rose 0.2% among banks, while in the property sector, Hang Lung Properties Ltd. HK:101 �HLPPY �climbed 0.5% and New World Development Co. HK:17 �NDVLY �added 3.8% to retrace some recent losses.

    Hong Kong�s financial secretary John Tsang said Wednesday that the city�s gross domestic product was expected to grow by between 1.5% and 3.5% in 2013 as the global economy gathers strength, Dow Jones Newswires reported. GDP grew 1.4% in 2012, just exceeding government forecasts for 1.2% growth.

    In stock action on the mainland, Agricultural Bank of China Ltd. CN:601288 �ACGBY rose 2.1% and Poly Real Estate Group Co. CN:600048 �higher by 3.9% in Shanghai.

    Aiding the South Korean stock market, Kia Motors Corp. KR:000270 KIMTF advanced 1.7% and Hyundai Motor Co. KR:005380 �HYMTF �added 0.7%.

    In Australia, building materials group Boral Ltd. AU:BLD � BOALF �climbed 4.2% after Tuesday�s U.S. housing data.

    Rival James Hardie Industries PLC AU:JHX �JHX reversed early losses to trade up 1.6%. The firm reported a 7% drop in nine-month net profit to $115 million.

    Utility AGL Energy Ltd. AU:AGK jumped 4.5% after reporting that its first-half net profit more than tripled to $373 million.

    Priceline Rises 4% on FYQ1 EPS Beat, Higher Q2 Rev View

    Shares of travel booker Priceline.com (PCLN) are up $27.52, or 4%, at $706.01 in late trading after the company this afternoon reported Q4 revenue that was in line with what analysts were expecting and profit that beat, and projected revenue this quarter ahead of expectations but profit below consensus.

    Revenue in the three months ended in December rose 20%, year over year, to $1.19 billion, yielding EPS of $6.77, excluding some costs.

    The Street had been modeling $1.19 billion and $6.53.

    The “gross travel bookings” of all the firm's properties rose 33%, year over year, said Priceline, to $6.6 billion.

    CEO Jeffery Boyd called the results “strong,” and said international bookings growth of 43% “evidenced the resilience of the business in 2012 despite economic uncertainty in our core European market.”

    For the current quarter, Priceline projected year-over-year bookings growth of 30% to 37%, and revenue growth of 17% to 24%, equaling a range of $1.21 billion to $1.25 billion, with EPS in a range of $4.90 to $5.30.

    Analysts have been modeling$1.24 billion and $5.17.

     

    Tuesday, February 26, 2013

    Sears Holdings Earnings: An Early Look

    Earnings season is now starting to wind down, with most companies already having reported their quarterly results. But there are still some companies left to report, and Sears Holdings (NASDAQ: SHLD  ) is about to release its quarterly earnings report. The key to making smart investment decisions with stocks releasing their quarter reports is to anticipate how they'll do before they announce results, leaving you fully prepared to respond quickly to whatever inevitable surprises arise. That way, you'll be less likely to make an uninformed, knee-jerk reaction to news that turns out to be exactly the wrong move.

    Sears Holdings has been under siege for years, as its retail business has proven unable to keep up with changing conditions in the industry. Yet the question still up for debate is whether the company's real estate holdings make the stock a smart value. Let's take an early look at what's been happening with Sears Holdings over the past quarter and what we're likely to see in its quarterly report on Thursday.

    Stats on Sears Holdings

    Analyst EPS Estimate

    $0.98

    Change From Year-Ago EPS

    81%

    Revenue Estimate

    $11.77 billion

    Change From Year-Ago Revenue

    (5.8%)

    Earnings Beats in Past 4 Quarters

    2

    Source: Yahoo! Finance.

    Will Sears Holdings go on sale this quarter?
    Analysts have given a mixed picture of Sears in recent months, raising their earnings-per-share call on the company's most recent quarter by $0.12, but slightly widening their loss expectations for the full 2014 fiscal year. The stock hasn't gone anywhere, though, falling about 3% since late November.

    During the past quarter, Sears has continued following the game plan it set in motion more than a year ago. With its spinoff of Sears Hometown and Outlet Stores (NASDAQ: SHOS  ) in October, Sears has repeated the tack it took with Orchard Supply Hardware Stores (NASDAQ: OSH  ) by cutting out part of its business to trade as a separate company. Yet with Orchard having seen its shares drop 80% from its January 2012 first-day close, it's hard to feel optimistic about the new spinoff.

    Despite the pessimism surrounding the stock, longtime chairman and new CEO Eddie Lampert remains sold on its long-term promise. In January, he invested $13.5 million in outright stock purchases as the company tried to turn around for the holidays after a poor third-quarter showing. With the departure of former CEO Louis D'Ambrosio, it's clear that Sears will continue moving forward with Lampert's overall strategy intact.

    In its quarterly report, look for Sears to give more detailed results from its holiday quarter. Far more important than the retail operation, however, will be further attempts from Lampert to get more value out of the company's assets. Success or failure on that front will define whether Sears makes a good investment for Lampert and Sears shareholders.

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    Q4 Earnings: Ameriprise Misses Estimates, but Boosts Head count

    Ameriprise Financial (AMP) reported its fourth-quarter earnings late Wednesday, with net income falling for the second quarter in a row and missing expectations. The total number of advisors with the company, though, rose by 74 to 9,730, and net asset inflows for the advisors were $1.35 billion.

    “Our advisory business generated excellent results for the year, highlighted by record advisor productivity and accelerating success in our experienced advisor recruiting program,” said Jim Cracchiolo (left), chairman and CEO.

    The company said its fourth-quarter operating earnings were $312 million, or $1.33 per share, compared to $340 million, or $1.31 per share, a year ago. Net income from continuing operations was $240 million, or $1.02 per share, vs. $306 million, or $1.18 a share, a year ago.

    Ameriprise said that its lackluster results mainly reflected lower revenues, which dropped 2% to $2.5 billion on “lower hedge fund performance fees, the continued low interest rate environment, and the impact of market volatility, partially offset by growth in asset-based fees from retail client net inflows.”

    Wealth Management

    Ameriprise said it now has 9,730 financial advisors, about 7,500 of which are in its franchise, independent channel. That represents an increase of 74 reps from last year’s fourth quarter and a boost of 16 from the third quarter of 2011.

    Assets in the wealth-management unit are $310 billion, up from $304 billion last year and $293 billion in the previous quarter.

    Net inflows of client assets were $1.35 billion in the fourth quarter, down from $1.74 billion in the year-ago period but up from $820 million in the earlier quarter.

    Assets in wrap accounts are roughly $103.4 billion, a slight improvement both year over year and consecutively.

    The unit’s overall revenue was $905 million in the quarter, up from $894 million last year and down from $938 million in the third quarter. Net income hit $79 million, however, a drop from both last year ($97 million) and last quarter ($114 million).  

    What Does This Airline Merger Mean for Competitors?

    While understanding that the recently announced merger between US Airways (NYSE: LCC  ) and American Airlines (NASDAQOTH: AAMRQ  ) is obviously very important for shareholders of those two companies, it will also have a significant impact on competitors. On one hand, consolidation is expected to improve pricing power for the airline industry, which should benefit competitors. On the other hand, combining the American Airlines and US Airways networks will create a stronger carrier that could potentially take market share away from competitors. So who stands to gain or lose the most? Let's take a look.

    1. United Continental (NYSE: UAL  )
    United Continental is likely to be the biggest loser. In a message to employees, CEO Jeff Smisek tried to put a positive spin on matters by focusing on the benefits of consolidation. However, as part of the merger, US Airways is moving from United's Star Alliance to American's Oneworld global alliance. The merger presentation on Thursday pointed out that whereas Star Alliance has a 45% share of U.S. international capacity today (versus 30% for SkyTeam and 26% for Oneworld), Star's share will drop to 36% while Oneworld improves to 34% after the merger.

    United still has the broadest international network of any U.S. carrier. But it has benefited in recent years from the additional scale provided by being part of the dominant global alliance. United's current code-share arrangement with US Airways gives travelers additional itinerary options and opens up a few destinations served by US Airways but not United Continental. Today, American Airlines has one offsetting advantage, which is its trans-Atlantic joint venture with British Airways. This partnership gives American a strong position at London's Heathrow Airport, which is the top market for international business travel from the United States. After the merger, Oneworld will maintain its advantage in London while overcoming its previous size disadvantage.

    United will also see a particularly large impact from the merger because it has significant route overlap with American. The two have competing hubs in the New York, Chicago, and Los Angeles markets. Because of the strategic value of those cities, the three largest in the U.S., the post-merger American Airlines is likely to fight hard to maintain or improve its position in those markets. Thus, the effects of stronger competition from American are likely to outweigh any benefits from consolidation for United.

    2. Delta Air Lines (NYSE: DAL  )
    Delta is likely to see a more limited impact from the merger. Delta also competes in the New York and Los Angeles markets and has been working particularly hard to gain share in New York. American's East Coast strategy will have a major impact on whether Delta benefits from the merger. US Airways has a major hub and European gateway in Philadelphia, less than 100 miles from American's European gateway at JFK. If the combined carrier focuses on growing the larger Philadelphia hub, then Delta will be able to bolster its position in New York.

    However, the strategic importance of New York makes it more likely that American will keep trying to expand its presence at JFK, even though capacity is constrained by the lack of available slots there. While a resurgent American Airlines could crimp Delta's plans to gain market share in New York, Delta will be improving its own position at the same time, through a recently announced joint venture with Virgin Atlantic. That airline is the second largest carrier at Heathrow (albeit a distant second), and this partnership will vastly expand Delta's access to that critical market. Benefits from this new joint venture should more than offset any uptick in competition from American.

    3. Low-cost carriers
    Companies such as Southwest Airlines (NYSE: LUV  ) and JetBlue Airways (NASDAQ: JBLU  ) are likely to see the biggest benefit from the merger. As the three network carriers (American, United, and Delta) focus on gaining high-value international business travelers, Southwest and JetBlue will probably have opportunities to grow domestically. Southwest is best positioned to take advantage of any capacity rationalization that eventually takes place following the merger, because of its larger size and nationwide footprint.

    For example, the US Airways hub in Phoenix lies between American's hubs in Dallas/Fort Worth and Los Angeles. With the latter two being larger and more important business markets, Phoenix could eventually see some service cuts. Phoenix is already the fourth largest focus city in Southwest's network, with 173 daily departures to 47 cities. If American downsizes there, Southwest would gladly take up the slack.

    For JetBlue, the biggest upside comes from the strategic value of its hub at JFK Airport in New York. JetBlue has had an interline agreement with American Airlines since 2010, which allows customers to connect between American and JetBlue at JFK (and also in Boston). If American chooses to grow its European gateway at JFK, slot constraints will force it to rely even more heavily on JetBlue to generate connecting traffic. In other words, as American shifts JFK capacity toward international flights, JetBlue could see a corresponding increase in traffic on its domestic flights at JFK.

    Conclusion
    Thus, low-cost carriers such as Southwest and JetBlue are likely to be the biggest beneficiaries of the most recent round of airline consolidation. For Delta, and particularly for United, having two weaker competitors combine into one strong one is more likely to hurt than to help.

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    Dollar gains after upbeat data, Bernanke

    LOS ANGELES (MarketWatch) � The dollar rose against most major rivals Tuesday, holding to higher ground following a round of upbeat U.S. economic data and as Federal Reserve Chairman Ben Bernanke backed the central bank�s stimulus efforts.

    The ICE dollar index DXY , which measures the greenback against six major global currencies, traded at its highest level of the year as it reached 81.948, according to FactSet data. It settled around 81.852 versus 81.766 late Monday.

    The WSJ dollar index XX:BUXX �, which captures the currency�s moves versus a slightly wider basket of rival units, advanced to 72.70 from late Monday�s close at 72.62.

    The greenback found support after separate reports showed sales of new U.S. homes jumped to their highest pace since mid-2008, home prices in 2012 posted their best gain in seven years, and consumer confidence climbed in February, reaching its highest level in three months.

    Consumer confidence sank in January because of concerns over higher payroll taxes and fiscal uncertainty. See: Consumer confidence jumps in February.

    Click to Play Bernanke backs stimulus

    Market experts were hoping for a dovish message from Fed Chairman Ben Bernanke ... and they got exactly what they wanted.

    The reports arrived on the same day that Fed Chairman Bernanke in congressional testimony said he favored continuing the $85 billion-per-month bond-buying program, and that the benefits of the asset purchases are �clear.�

    The dollar on Tuesday was also aided by its safe-haven status with the resumption of political risk in Italy, said Richard Franulovich, chief currency strategist for Westpac Institutional Bank.

    Italy�s parliamentary election produced no clear overall winner, raising the prospect of a weak, broad coalition or fresh elections. Both scenarios leave investors fearing gridlock that could paralyze policy makers, underlining worries about the ability of Europe�s third-largest economy to get its debt burden under control. See: 'Ungovernable' Italy: Debt crisis back on table.

    �The fact that the dollar hasn�t necessarily made new highs against the euro...you could argue that Bernanke�s dovish commentary limited the upside scope of the dollar,� Franulovich said. �But I think it�s a matter of time that the dollar hits new highs against many currencies, including the yen,� with near-term risks including Italy�s bond auction on Wednesday and automatic U.S. spending cuts set to go into effect on Friday.

    The likelihood that European Central Bank President Mario Draghi will underscore conditions for access to its bond-buying program by countries under financial stress, �is not good news for the euro,� as well, said Franulovich. The ECB�s meeting next week will come as investors consider the impact of political instability in Italy on the country�s austerity program. See: ECB bond-buying program may not be there to save Italy.

    �The problem for Italy is that political inertia risks stalling the reform process,� said Jeremy Stretch, currency strategist at CIBC in London.

    Rising Italian bond yields � and a widening spread between peripheral euro-zone bond yields and German bunds � correlate to a weaker euro, he said. Continued political fears will limit the scope for a euro rebound. Read The Tell: ECB bond-buying program may not be there to save Italy.

    The yield on the 10-year Italian government bond IT:10YR_ITA �rose 47 basis points to 4.83%. Italian stocks plunged, dragging Europe lower. See: Europe stocks sink on election gridlock.

    Among major currency pairs, U.S. dollar USDJPY �traded at 91.88 yen versus �91.83 on Monday, but sharply lower than �93.43 on Friday. Bernanke during his testimony also said he supported the new stimulus programs of Japan�s Prime Minister Shinzo Abe, signaling the Fed chief isn�t worried about any so-called currency war.

    The British pound GBPUSD changed hands at $1.5128, compared with $1.5160, while the Australian dollar AUDUSD traded at $1.0233 compared with $1.0327.

    Top Stocks For 2/18/2013-2

    Reported by: Eric CRWE Newswire Middle East correspondent

    Intel Corp (NASDAQ: INTC) has revised its forecasts for the third quarter of 2010. The top microprocessor manufacturer expects revenue of $11 billion; this has been revised from earlier projection of revenue between $11.2 billion to $12 billion.

    The company lowered its expectations as it anticipates lower demand for consumer PC’s in developed markets. As per IDC data lower consumer spending will result in a drop in PC shipments for the second half, eventually affecting business of Intel Corp’s and other related companies.
    IDC spokesperson stated, “We expect consumer activity to remain healthy, but gradually slow through the end of the year, while commercial market growth will be more stable, reflecting a planned replacement cycle over the next several years.”

    PC shipments gained in the first half 2010 as compared to last year as the economy began a recovery from the recession but now PC manufactures like Dell Inc expects a sluggish demand for the second half of 2010.

    On the other hand chief financial officer of Dell Inc Brian Gladden also projects a surge in demand for consumer PCs by the end of the year due to the holiday season.

    According to one estimate almost 80 percent of computers globally opt for Intel micro processors. Intel Corporation (Public, NASDAQ:INTC) gained 1.05 percent to $18.37 with total traded volume of 135.20 million shares for the day.

     

    The Views and Opinions Expressed by the author are his or her opinions only and do not necessarily reflect those of this Web-Site or its agents, affiliates, officers, directors, staff, or contractors. The author at the time of this article did not own any shares or receive any consideration financial or otherwise from any company or person mentioned or referred to in the article.

    THIS IS NOT A RECOMMENDATION TO BUY OR SELL ANY SECURITY!

    Yahoo! Eliminates Work-From-Home for Its Employees

    Yahoo! (NASDAQ: YHOO  ) has instituted a policy in which it is to eliminate the option of working from home for its employees, according to an internal memo from�Executive Vice President of People and Development Jackie Reses obtained and published by AllThingsD. The policy is to take effect starting in June.

    In the memo, Yahoo! stressed the value of on-site collaboration. "To become the absolute best place to work, communication and collaboration will be important, so we need to be working side-by-side... Some of the best decisions and insights come from hallway and cafeteria discussions, meeting new people, and impromptu team meetings. Speed and quality are often sacrificed when we work from home," it reads.

    link

    General Cable Goes Negative

    General Cable (NYSE: BGC  ) reported earnings on Feb. 25. Here are the numbers you need to know.

    The 10-second takeaway
    For the quarter ended Dec. 31 (Q4), General Cable met expectations on revenues and met expectations on earnings per share.

    Compared to the prior-year quarter, revenue increased significantly. Non-GAAP earnings per share dropped. GAAP earnings per share contracted to a loss.

    Margins dropped across the board.

    Revenue details
    General Cable chalked up revenue of $1.60 billion. The six analysts polled by S&P Capital IQ anticipated revenue of $1.62 billion on the same basis. GAAP reported sales were 17% higher than the prior-year quarter's $1.37 billion.

    Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

    EPS details
    EPS came in at $0.28. The six earnings estimates compiled by S&P Capital IQ forecast $0.28 per share. Non-GAAP EPS of $0.28 for Q4 were 6.7% lower than the prior-year quarter's $0.30 per share. GAAP EPS were -$0.35 for Q4 compared to $0.09 per share for the prior-year quarter.

    Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

    Margin details
    For the quarter, gross margin was 8.3%, 100 basis points worse than the prior-year quarter. Operating margin was 0.3%, 200 basis points worse than the prior-year quarter. Net margin was -1.1%, 140 basis points worse than the prior-year quarter.

    Looking ahead
    Next quarter's average estimate for revenue is $1.66 billion. On the bottom line, the average EPS estimate is $0.48.

    Next year's average estimate for revenue is $6.92 billion. The average EPS estimate is $2.75.

    Investor sentiment
    The stock has a three-star rating (out of five) at Motley Fool CAPS, with 609 members out of 636 rating the stock outperform, and 27 members rating it underperform. Among 159 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 153 give General Cable a green thumbs-up, and six give it a red thumbs-down.

    Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on General Cable is outperform, with an average price target of $36.20.

    If you're interested in companies like General Cable, you might want to check out the jaw-dropping technology that's about to put 100 million Chinese factory workers out on the street � and the 3 companies that control it. We'll tell you all about them in "The Future is Made in America." Click here for instant access to this free report.

    • Add General Cable to My Watchlist.

    Did You Overlook This Top-Performing Sector?

    Quick question: What was the top-performing asset class of 2012? If you're thinking emerging markets or domestic micro-cap stocks, you'd be wrong. In fact, the best-performing asset class in 2012, by a wide margin, was an area of the market that many investors don't even have exposure to -- global real estate. The Dow Jones Global ex-U.S. REIT index was up a whopping 34.3% last year. And while you shouldn't expect a repeat performance in 2013, you may want to consider adding exposure here if you don't already have it.

    A global focus
    While institutional investors have been investing in alternative asset classes for quite some time now, Main Street investors have begun jumping on the alternative bandwagon only recently. Commodities, real estate, and other "real return" assets have gradually found their way into more and more retail portfolios. And while real estate investment trusts, or REITs, are a popular choice for folks seeking commercial real estate exposure, most investors tend to focus on domestic investments.

    There are a number of solid domestically focused real estate ETFs. The Vanguard REIT Index ETF (NYSEMKT: VNQ  ) , for instance, comes with a super-low 0.10% price tag. Investors who prefer active management or who want to supplement their existing passively invested real estate allocation would do well with a stable, low-risk fund like T. Rowe Price Real Estate (TRREX). But if you want to expand your reach overseas, there are also some great options that focus on that space.

    Exchange-traded funds
    Exchange-traded funds remain one of the cheapest and easiest ways to get broad exposure to practically any segment of the market, including global real estate. Some of the most inexpensive options in this sector include Vanguard Global ex-U.S. Real Estate ETF (NASDAQ: VNQI  ) if you want true international coverage and SPDR Dow Jones Global Real Estate ETF (NYSEMKT: RWO  ) for global exposure that includes a 54% allocation to the U.S. The Vanguard fund will cost you just 0.35% while the SPDR comes with a 0.50% annual expense ratio. Either is a great choice for low-cost foreign real estate exposure.

    Actively managed funds
    Investors who want a bit more active guidance when roaming the world for real estate opportunities should consider putting their trust in a money manager with considerable experience in this sector. One great choice is T. Rowe Price Global Real Estate (TRGRX). Although the fund has only been around since 2008, it is headed up by manager David Lee, who has managed the domestically focused T. Rowe Price Real Estate fund since its inception in 1997. Lee follows the same sensible, risk-managed approach in both funds, looking for well-managed real estate companies that are selling at reasonable valuations. U.S. names are featured in the fund, including top holding Simon Property Group (NYSE: SPG  ) , which Lee favors for its portfolio of high-productivity malls and its strong negotiating power with tenants. T. Rowe Price Global Real Estate has a lower risk profile than many similar funds, so this is a good place to start if you're new to the global real estate scene.

    If you're looking for a fund that gives its managers a little more leeway and you can live with a few more bumps in the road, Third Avenue Real Estate Value (TVRVX) may be right up your alley. This fund tends to eschew real estate investment trusts�in favor of real estate operating companies. The management duo in charge here follows a strict pricing discipline, only buying stocks when they are trading at steep discounts to their estimated value. Both domestic and foreign names live side by side in the portfolio, with U.S. assets accounting for roughly one-quarter of total assets. Outside of the U.S., companies headquartered in Hong Kong, the U.K., Australia, and Canada make up the largest regional allocations.

    Management has quite a bit of flexibility built into its mandate, so there's a fair amount of wiggle room within the portfolio. For example, the fund owns home improvement retailer Lowe's (NYSE: LOW  ) , purchased for its strong financial position, durable competitive position, and healthy cash flow. Because of its unique approach, Third Avenue Real Estate Value can move out of step with its peers at times, but over the long run the fund is a fine option for worldwide exposure to the real estate sector.

    Don't invest in global real estate funds expecting them to top the charts again in 2013, because they probably won't. But adding a small international real estate allocation to your portfolio should help boost returns over the long run while providing an additional layer of diversification for your existing assets.

    To learn more about a few ETFs that have great promise for delivering profits to shareholders in a recovering global economy, check out The Motley Fool's special free report "3 ETFs Set to Soar During the Recovery." Just click here to access it now.

    Opinion: Charlie Cook Has a Problem198 comments

    "Why Obama Should Sit Down and Keep Quiet" is the headline on Charlie Cook's latest National Journal column. Normally we'd file that under "Longest Books Ever Written" and leave it at that, but Cook, whose carefully hedged bits of conventional wisdom often end up in this column's "Out on a Limb" heading, offers this beaut of an observation:

    In 2010, the GOP lost five of the seven Senate contests The Cook Political Report rated as toss-ups going into Election Day; in 2012, it lost eight of 10. When a party loses 13 of 17 toss-ups over two elections, it has a problem.

    Let's pause to stipulate that up to this point, we do not disagree with Cook's conclusion, although it is something of a tautology to observe that a political party has a problem if it loses elections. Actually, we'd say the GOP has multiple problems. But we shall demonstrate that the premise and logic he employs to reach this conclusion are laughably flawed--and self-serving to boot.

    Before we get to that, here's Cook's diagnosis of the problem:

    In many cases, Republicans nominated horrifically flawed candidates who didn't quite self-destruct but were too weak to win. In other cases, they nominated candidates who did self-destruct. And when these problematic candidates pulled the pin on the grenade, other GOP office-seekers in their states became collateral damage.

    This is at best simplistic, as Slate's Dave Weigel notes:

    On to that "eight of 10" number from 2012, from the final pre-election Cook report. [Todd] Akin's race wasn't on that list--by election time, Cook rated the race as a "likely" Democratic win. [Richard] Mourdock's race was on the list. But look at the other close races lost by Republicans: Montana, North Dakota, Virginia, Massachussetts [sic], Wisconsin, Connecticut, Maine. In the first four, they nominated current or former Republican legislators, not Tea Party candidates. In Wisconsin, they nominated a former governor who defeated Tea Party candidates in the primary. In Connecticut, they nominated a multi-millionaire who ran to the left. And in Maine, they nominated a fairly centrist Republican who tried, and failed, to win a three-way race against a Democrat and an Independent supported by Democrats. As Ramesh Ponnuru keeps writing, most GOP Senate candidates, even in places like Texas and Montana, ran behind Mitt Romney.

    "The gaffe/Tea Party theory of Republican defeat is just too pat, too easy," Weigel writes, an observation that seems indisputable. He argues that blaming the Tea Party distracts the GOP from the need to address "real questions about internal reform." We're not sure exactly what he has in mind, but we'd add that some of the Republicans' problems, such as media bias and the Democrats' edge in get-out-the-vote technology, are exogenous.

    MSNBC/NewsBusters.org

    It's Cook. Book!

    But what's really funny about Cook's argument is the data on which he bases it. One could measure a party's performance in Senate races by any number of objective measures. One would be the overall number of seats won in a given year. On that score Republicans did quite well in 2010 (24 wins, 13 losses) and very poorly in 2012 (8 wins, 25 losses).

    That measure is a bit misleading, since it doesn't take into account the differences in the composition of Senate classes by state. As Larry Sabato noted in 2010, last year's class of senators were the "blue class"--the one with the greatest number of states Barack Obama carried in 2008, so one would expect the GOP to have done worse by this measure than in 2010, when the "purple class" was up. (A bright spot for the GOP: The 2014 class is the "red class," yet the Republicans, having done very poorly in 2008, are defending fewer seats than the Democrats.)

    Ponnuru's method of comparing a party's performance in Senate races with that of its presidential candidate is one way of dealing with this complication, at least in presidential years. That could cut both ways, however. In several states with competitive 2012 Senate races--Connecticut, Massachusetts, Nevada, New Mexico and Wisconsin--the Democrat's share of the Senate vote was smaller than Obama's. Obama also outpolled successful Democratic Senate candidates in Hawaii and Maryland.

    Cook avoids these complications by basing his conclusions on "Senate contests The Cook Political Report rated as toss-ups going into Election Day." That seems to focus on the contests that mattered most, but in reality it turns the exercise into a test of Cook's ability as a political prognosticator. And it turns out he doesn't do very well.

    Nate Silver, who runs the FiveThirtyEight blog for the New York Times, also issued rankings in Senate races last year. But his method is a lot more precise than Cook's. He used a mathematical model that crunched poll data and produced a probability of each candidate's victory. Importantly, he eschewed the "toss-up" hedge and assigned each candidate a probability to a percentage point.

    Of the eight Cook "toss-ups" that Republicans lost, Silver called six correctly on election eve. He rated Connecticut, Maine and Massachusetts "safe" and Indiana, Virginia and Wisconsin "likely Democratic." Montana was "lean Republican," and North Dakota, Silver's one big miss, "safe Republican."

    Whatever method Cook uses to designate races "toss-ups" overestimated the GOP's Senate prospects and underestimated the Democrats' in both 2010 and 2012. The same was true of Silver, but to a lesser extent notwithstanding the greater precision of his predictions. To be sure, the Republican Party has many problems. But in blaming the GOP for his undistinguished record as a prognosticator, Cook is trying to obscure the fact that Charlie Cook has a problem.

    Orwell, Meet Ed Markey This is a bit of a man-bites-dog story: A politician is taking heat for an unfortunate allusion to slavery--and the pol in question is a Democrat. NPR's Frank James has the story:

    He caused a kerfuffle by citing, in the same breath, the Supreme Court's 2010 Citizens United campaign-finance decision and the opinion of a much earlier court, the infamous 1857 Dred Scott decision. In that case, the court told a black man seeking to be freed from slavery that he had no constitutional right to sue for his freedom.Markey's remarks at a Tuesday campaign stop were first reported on BuzzFeed and captured on video and uploaded, of course, to YouTube:"I want to go to the United States Senate in order to fight for a constitutional amendment to repeal Citizens United. The whole idea that the Koch brothers, that Karl Rove can sa [sic], 'We're coming to Massachusetts, we're coming to any state of the union with undisclosed amounts of money,' is a pollution that must be changed. And the Constitution must be amended. The Dred Scott decision had to be repealed--we have to repeal Citizens United."

    James offers a weak defense of Markey: "Of course, Markey never said that Citizens United equaled Dred Scott in infamy or in the harm they [sic] caused the nation." Then he adds this:

    Markey could have made an additional point. There aren't many examples to choose from of a well-known Supreme Court case that was later universally held to have been wrongly decided and that took constitutional amendments to erase. The Dred Scott decision is really it.

    There's a problem in the logic here. It can't be truth both that the decision is universally understood to be wrongly decided and that a constitutional amendment was necessary to reverse it. Since members of the Supreme Court are part of the universe, they would share the universal understanding and either reverse the decision outright or ignore it, effectively rendering it a dead letter. A constitutional amendment was sufficient to render Dred Scott a nullity, but it could not have been necessary absent a serious argument that the case was correctly decided under the unamended Constitution (which did, of course, countenance slavery).

    Markey's comparison is especially inappropriate for another reason: Citizens United was a case expanding a fundamental constitutional right, freedom of speech. He really seems to believe, � la "1984," that freedom is slavery.

    First They Came for the Millionaires and Billionaires Give the New York Times credit for honesty. (Wait, did we just write that?) In an editorial today, the paper describes, as the headline has it, "Why Taxes Have to Go Up." And it isn't only the rich they want to soak:

    To reduce the deficit in a weak economy, new taxes on high-income Americans are a matter of necessity and fairness; they are also a necessary precondition to what in time will have to be tax increases on the middle class.�.�.�. There will never be a consensus for more taxes from the middle class without imposing higher taxes on wealthy Americans, who have enjoyed low taxes for a long time.

    Call it the gorge-the-beast theory: Higher taxes on the wealthy make it easier to avoid spending cuts now, creating more dependence on the government and making it necessary to sock it to the middle class, and hard, in the long run. If you join Barack Obama's class war on the theory that you aren't part of the enemy class, it's likely you'll eventually become a casualty anyway.

    Illinois Guns: A Clarification The Seventh U.S. Circuit Court of Appeals has denied a petition for an en banc rehearing of Moore v. Madigan, the December ruling holding that Illinois's blanket ban on carrying firearms in public violates the Second Amendment, the Associated Press reports. That likely means that lawmakers in Springfield will enact a more permissive gun-control law between now and June, when a stay on the ruling expires.

    A clarification: In yesterday's column, and also in our column of Dec.�12, we suggested that the court ruling would require Illinois to permit the carrying of concealed firearms. A closer reading of the decision makes clear this isn't necessarily the case. The court held only that a complete ban on carrying weapons in public was unconstitutional. Its decision leaves open the possibility that permitting open carry would be sufficient to remedy the constitutional infirmity.

    Whitewash! Time.com's Sam Gustin makes an oddly gratuitous racial reference in the course of reporting on possible successors to Julius Genachowski, chairman of the Federal Communications Commission:

    A [sic] FCC commissioner since 2009, Mignon Clyburn is the daughter of Rep. James Clyburn (D-SC). Clyburn served for 11 years as the representative of South Carolina's sixth district on the Public Service Commission of South Carolina. Prior to that, she spent 14 years as publisher of The Coastal Times, a Charleston-based weekly newspaper focused primarily on issues affecting the African-American community.If Genachowski does step down, Clyburn would become the most senior Democrat on the commission. And as an African-American woman, she would be a ground-breaking choice to lead an agency that has only been led by men over the course of its 80-year history.

    We get that she's the first woman, but why is it relevant that she's "African-American"? If you remember yesterday's column, you know why: because Gustin originally stated that the agency "has only been led by white men," forgetting about Michael Powell (and also Powell's immediate predecessor, Bill Kennard, whom we overlooked as well). After we noted Gustin's error, he seems to have corrected it, but without acknowledgment.

    Two Lefty Hacks in One!

    • "Make no mistake: The Bush Administration and its ideological allies are employing every means available to undermine journalists' ability to exercise their First Amendment function to hold power accountable. In fact, the Administration recognizes no such constitutional role for the press. White House Chief of Staff Andrew Card has insisted that the media 'don't represent the public any more than other people do. .�.�. I don't believe you have a check-and-balance function.' Bush himself, on more than one occasion, has told reporters he does not read their work and prefers to live inside the information bubble blown by his loyal minions. Vice President Cheney feels free to kick the New York Times off his press plane, and John Ashcroft can refuse to speak with any print reporters during his Patriot-Act-a-palooza publicity tour, just to compliant local TV."--Eric Alterman, The Nation, May�9, 2005 issue
    • "According to a much-discussed recent report in Politico, members of the press are frustrated by their lack of face time with President Barack Obama. .�.�. It would be hard to find an administration that did not inspire unhappiness among those who have the misfortune of drawing the assignment of covering it for their media outlet. What a remarkably ahistorical bunch these reporters are--and they're apparently dealing with a collective case of short-term memory loss, too. 'He gives interviews not for our benefit, but to achieve his objective,' complained Mark Knoller, a veteran CBS News reporter�as if this were not true of every single politician who has ever given a press interview anywhere, anytime. It may or may not be true that President Obama is less available to the press corps than previous presidents�though in many respects, that means he is probably telling fewer lies to the media and the people than his predecessors did."--Eric Alterman, Center for American Progress website, Feb.�21, 2013

    Fox Butterfield, Is That You? "A National Journal study released Thursday found that Republican Rep. Michael Grimm of Staten Island is at the ideological center of the House of Representatives: 217 members are more liberal and 217 members are more conservative. In a remarkable coincidence, the lawmaker he replaced, Democrat Michael McMahon, was found to be at the ideological center in the same study of House members released three years ago. .�.�. Each took the center spot on the conservative-liberal spectrum, even though the composition of Congress changed: McMahon served when Democrats were in the majority, and Grimm has served when Republicans were in control."--Dan Friedman, Daily News (New York), Feb.�22

    Out on a Limb "Prosecutor: Man Who Killed His Wife Wanted Out of Marriage"--headline, KCCI-TV website (Des Moines, Iowa), Feb.�21

    Whatever You Do, Don't Tell Anyone! "President Obama Holds Off-Record Meeting With Top White House Reporters"--headline, Politico.com, Feb.�21

    Longest Books Ever Written "On the Dangers of Listening to Joe Biden"--headline, Commentary website, Feb.�21

    'You Can't Fire Me, I Quit!' "1 Person Injured in Benedict Fire"--headline, Associated Press, Feb.�22

    Same-Sex Marriage Really Is Becoming More Popular "South Carolina: Duncan, Mulvaney Endorse Grooms in 1st District"--headline, RollCall.com, Feb.�21

    Like Joseph Stalin and Gandhi�/ It's the Cult of Personality "Adolf Hitler Running for Election in India"--headline, Associated Press, Feb.�22

    Helen Thomas, Please Pick Up a White Paging Phone "Waiting for bags. Hagel is a done deal now that Shelby flipped. Inhoff needs to give it up or will die on this unwinnable hill #whcdblktie?"--tweet, @JoseCanseco, Feb.�21

    If-- "China Set to Keep Central-Bank Head in Place"--headline, WSJ.com, Feb.�22

    So Much for the War on Drugs "White Snow May Herald Green Grass in Dry Nebraska"--headline, Associated Press, Feb.�21

    To Serve Man "Tesla Needs a Tim Cook"--headline, TechnologyReview.com, Feb.�21

    The Lonely Lives of Researchers "Alligators Sport Always-Erect, Hidden Penises, Researcher Finds"--headline, NBCNews.com, Feb.�21

    'As God Is My Witness, I Thought Rodents Could Fly!' "US Gov't to Air-Drop Toxic Mice on Guam Snakes"--headline, Associated Press, Feb.�22

    Questions Nobody Is Asking

    • "Betty Friedan and Black Women: Is It Time for a Second Look?"--headline, Washington Post webite, Feb.�21
    • "What if All the NFL Logos Were British?"--headline, DaveArtLocker.blogspot.com, Feb.�19
    • "Blueberry Coffee and Bourbon Ham: Hot or Not?"--headline, AdAge.com, Feb.�21

    Answers to Questions Nobody Is Asking

    • "Why Your Boss Is Dumping Your Wife"--headline, MarketWatch.com, Feb.�22
    • "Sandra Fluke: Military Should Accept Transexual Recruits"--healdine, DailyCaller.com, Feb.�22

    Question and Answer

    • "How Do I Maximize My Burrito-Eating Skills?"--headline, Westword.com (Denver), Feb.�20
    • "�Ask A Mexican!"--headline, Inland Empire Weekly (Corona, Calif.), Feb.�21

    It's Always in the Last Place You Look

    • "Al-Qaeda Tipsheet on Avoiding Drones Found in Timbuktu"--headline, Denver Post, Feb.�22
    • "Has Anyone Seen My Google Glasses?"--headline, Los Angeles Times website, Feb.�21

    News You Can Use "How to Post to Facebook, Twitter After You Die"--headline, CNN.com, Feb.�22

    Bottom Stories of the Day

    • "No Animals Hurt in Barn Fire"--headline, Democrat and Chronicle (Rochester, N.Y.), Feb.�21
    • "Detroit Tops 2013 List of America's Most Miserable Cities"--headline, Forbes.com, Feb.�21
    • "�'Zero Dark Thirty' Unofficially Banned in Pakistan"--headline, NBCNews.com, Feb.�21

    A China Man's Chance Despite high sex ratios owing to the notorious one-child policy, Chinese women are increasingly likely to end up as shengnu--literally, "leftover women"--unmarried as they approach and surpass the age of 30, the BBC reports:

    Census figures for China show that around one in five women aged 25-29 is unmarried.The proportion of unmarried men that age is higher - over a third. But that doesn't mean they will easily match up, since Chinese men tend to "marry down", both in terms of age and educational attainment.

    That formulation reflects the common misconception that mating markets are driven entirely by men's choices. In fact, while it's true that men generally prefer younger women, the tendency to "marry down" is a result of the female preference for dominant or high-status men.

    The elevation of female status causes an imbalance in the sexual marketplace, as an unmarried 29-year-old Chinese woman explains:

    "There is an opinion that A-quality guys will find B-quality women, B-quality guys will find C-quality women, and C-quality men will find D-quality women," says Huang Yuanyuan. "The people left are A-quality women and D-quality men. So if you are a leftover woman, you are A-quality."

    As we've noted, the same trend is evident, and likely to accelerate, in America as our society produces more and lonelier "A-quality" women. Such are the fruits of E-quality.

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    (Carol Muller helps compile Best of the Web Today. Thanks to Irene DeBlasio, David Hallstrom, Ray Hull, Eric Jensen, Chris Papouras, Steve Bartin, Michele Schiesser, Irwin Chusid, Scott Patrick, John Henke, Scott McIntyre, Jeryl Bier, Dave Mason, Miguel Rakiewicz, Mark Nicholas, John Sanders, John Bobek, John Williamson, Walter Thornton, William Thode, Bruce Goldman, Zack Russ, Eric Tull, Mark Zoeller, Bob Sauerteig and Marc Lanman. If you have a tip, write us at opinionjournal@wsj.com, and please include the URL.)