Top GM execs paid $1 million in last year of bailout

The U.S. Treasury let GM execs get salaries that were too big, according to a watchdog report. NEW YORK (CNNMoney) Top executives at GM and Ally Financial enjoyed big pay days while their bankrupt companies struggled to repay the government in full for the bailout, a watchdog report said Wednesday.

The report blamed the Treasury Department for loosening the limits on executive pay that came as conditions to the bailout.

President Obama asked in 2009 that cash salaries be capped at $500,000, but the Treasury Department approved salaries that topped that amount for 16 employees at GM and its former financing arm, Ally, in 2013. In fact, the top 25 employees each received total compensation, including salary and stock, of at least $1 million that year, according to the report.

Treasury was too concerned with keeping companies competitive, disregarding the fact that the reason to keep them competitive was so that they could repay taxpayers in full, the report said.

In a response, Treasury's Acting Special Master Patricia Geoghegan said the report contains many inaccuracies and omissions. She points out that Congress never established a cap on compensation. Instead the Treasury is supposed to determine that pay packages are "not inconsistent" with the public interest.

At the time, GM (GM) and Ally were the only companies left (out of seven) in the government's Troubled Asset Relief Program. The government sold its final stake of GM in December of 2013, but taxpayers came up about $10 billion short on the bailout.

In total, taxpayers invested $352 billion in the seven companies and recouped all of that, plus an additional $25.6 billion.

Finish Line Inc Misses Q2 Estimates; Shares Sink (FINL)

Before the opening bell on Friday morning, Finish Line Inc. (FINL) reported its second quarter earnings, posting higher revenues and flat earnings compared to last year’s Q2 results.

FINL’s Earnings in Brief

Finish Line reported second quarter revenues of $466.88 million, up from last year’s Q2 revenues of $436.03 million. Net income for the quarter came in at $26.16 million, or 54 cents per diluted share, which is essentially flat with last year’s Q2 figures of $26.5 million, or 54 cents per share. FINL’s Q2 results missed analysts’ estimates of 60 cents EPS on revenues of $477.61 million. For FY2015, Finish Line expects comparable store sales to be up mid single digits and earnings per share to increase in the high single to low double digit range.

CEO Commentary

FINL chairman and CEO Glenn Lyon had the following comments: "Our second quarter results fell short of our expectations due to softness within elements of our basketball offering while our running business was up mid single digits driven by casual and performance styles. We are confident that we can reaccelerate sales trends in basketball by working closely with our brand partners to improve our assortments. In combination with our market leadership position in running, advanced omnichannel capabilities and growing business relationship with Macy's, this will fuel sustainable sales and earnings growth over the long-term."

FINL’s Dividend

Finish Line most recently paid a dividend on September 15. We expect the company to declare its next quarterly dividend of 8 cents in the coming month.

Stock Performance

FINL stock was down $2.41, or 8.19%, in pre-market trading. YTD, the stock is up 4.48%.

FINL Dividend Snapshot

As of Market Close on September 25, 2014

Click here to see the complete history of FINL dividends.

Best Money-Saving Tips From Top Personal Finance Bloggers

Each week I round up advice from some of my favorite personal finance bloggers to share with Kip Tips readers. This past weekend I had the chance to meet many of these bloggers in New Orleans during a financial media conference. So I used the opportunity to ask them in-person what is their single best tip for saving money. Here is the advice they offered:

SEE ALSO: 30 Ways to Waste Your Money

Downgrade your technology, says Sandy Smith of Yes, I Am Cheap. She says that we get so hooked on technology that we fail to ask ourselves whether we really need to buy the latest and greatest gadgets. We often don't bother to add up how much we're spending on technology. Rather than buy a new iPhone 6, she's sticking with the $50 phone she has with a pay-as-you-go plan.

Get a home energy audit, says Joe Saul-Sehy of Stacking Benjamins. Yes, you'll have to pay for a technician to inspect your home ($200 or more), but Saul-Sehy says that you'll save much more as a result of learning what can be done to make your house more energy efficient. The U.S. Department of Energy has more information about home energy audits.

Search for coupon codes before making any purchase online, says Patrice Washington of Real Money Answers. She says she never buys anything without first looking for a way to get a discount. (See my tips on how to find online coupon codes.)

Use the question strategy, says Shannon McNay of ReadyForZero. Before she makes a big purchase, McNay asks herself whether spending on that item will get her off track toward reaching her savings goals. Taking the time to question whether she should buy something helps her keep spending under control.

Automate your savings, says Rob Berger of Dough Roller. We spend what we have, Berger says. Have retirement account and other savings contributions automatically withdrawn from your paycheck or checking account so the money comes out before you can spend it, he says.

Earn rewards points on everyday spending, says Philip Taylor of PT Money. He racks up points through his supermarket's loyalty program to save money on gas. As a Kroger Plus Card holder, he gets one fuel point for every $1 spent on groceries and two points for gift card purchases. Points can be redeemed for discounts at Kroger fuel centers ranging from 10 cents a gallon to $1 a gallon. So he buys Kroger gift cards to get double the points and uses the cards to purchase his groceries.

Buy quality, says Ryan Guina of Cash Money Life and The Military Wallet. Don't settle for an inferior product just because it's cheaper, he says. Buy something that's going to last so you don't have to keep shelling out money to replace cheap products.

Don't be afraid to spend on maintenance, says Jim Wang of Microblogger. Paying to maintain expensive items, such as your car, can help you avoid costly repairs down the road. The most important thing you should maintain is yourself, he says, because nothing is more financially catastrophic than a major health problem.

Actually save the money, says J. Money of Budgets Are Sexy. It's one thing to say you saved money by cutting back or shopping smarter, but it's another thing to actually do it, he says. So when you eliminate an expense or buy something at a discount, put the money you saved into a savings account.

Focus on the big wins instead of the small ones, says J.D. Roth of More Than Money. When you're trying to save money, you'll get results faster by cutting back on the things that cost you the most. For example, he says, downsizing your home so you'll have a smaller mortgage payment will make a bigger difference than clipping coupons.

The UPS Store will 3-D print stuff for you

  Watch this 3D printer print makeup NEW YORK (CNNMoney) Can't afford your own 3-D printer? Just head to the UPS Store.

UPS (UPS) announced plans Monday to bring in-store 3-D-printing services to nearly 100 stores across the country, billing itself as the first national retailer to do so.

With the UPS system, customers can submit their own designs for objects like product prototypes, engineering parts and architectural models that are then printed on a professional-quality 3-D printer made by Stratasys.

Prices vary depending on the complexity of the object; an iPhone case would be about $60, while a replica femur bone would be around $325. UPS can also connect customers with outside professionals who charge an hourly rate to help produce a design file for the printer.

It generally takes about four or five hours to print a simple object, with more complex items taking a day or more.

The program started as a pilot at six locations last year, and UPS says those stores "saw demand for 3-D print continuing to increase across a broad spectrum of customers."

What Would a $2 Billion Acquisition of Games Maker Mojang Mean for Microsoft Corporation?

"Minecraft" on Xbox 360; Source: Xbox.com.

Microsoft (NASDAQ: MSFT  ) might be on the verge of an acquisition that could significantly affect its position in the gaming industry. The Wall Street Journal reported Tuesday that Redmond will soon complete a purchase of Mojang AB at a price exceeding $2 billion.

Mojang is an independent developer based in Sweden, and the creator of Minecraft, an incredibly popular game that has had a major impact on the industry landscape. How would this acquisition benefit Microsoft? Would it be a smart purchase for the company at the reported price?

Setting the stage
When CEO Satya Nadella reaffirmed his company's commitment to the Xbox brand, there were strong reasons to believe Microsoft might soon purchase gaming assets and developers. Problems related to the initial introduction and marketing of its Xbox One video console erased much of the goodwill the company had built up in the previous hardware generation. Bulking up its gaming holdings looked like it might be a necessary step to better compete with Sony's (NYSE: SNE  ) explosive PlayStation 4.

Nadella's reiteration of support for the Xbox also came with the suggestion that the company would seek to better integrate its gaming assets with its mobile platform. Acquiring relevant companies and properties was likely a means of improving Microsoft's ability to achieve this goal, and the Mojang purchase could be the first in a series of related buys.

Why Mojang and Minecraft matter
Minecraft is one of the most successful games in the history of the medium. As of June 25, the title had sold approximately 54 million copies across a wide array of platforms. To give an idea of the game's trajectory, it debuted on personal computers in 2009, but combined sales across Sony's PlayStation 3 and Microsoft's Xbox 360 were still strong enough to make Minecraft the second-best selling game in July 2014. The title also recently launched on PlayStation 4 and Xbox One, and is virtually guaranteed to be a big hit on these platforms.

Minecraft is an industry anomaly of the best kind, and one of the few titles that has found great success across PC, console, and mobile platforms. While the game's social focus fits with current industry trends, its aesthetics and gameplay mechanics set it apart from other modern games of comparable success. Perhaps because of these factors, the game has transcended traditional demographic appeal, achieving significant cache with both older and younger audiences.

Sources suggest Microsoft will not remove versions of the game from Sony's online store if the purchase goes through; but a hypothetical, exclusive sequel to the megahit could be a big draw for Microsoft's ecosystem. On the other hand, Minecraft might also serve as Microsoft's testing grounds for platform agnosticism.

Is Mojang a good deal at a price in excess of $2 billion?
It's important to point out that Mojang is essentially the Minecraft company, in much the same way that King Digital Entertainment (NYSE: KING  ) can be described as the Candy Crush Saga company. While there are significant differences between the two games makers, their points of similarity might offer a window into the value of the proposed deal.

Prior to its IPO earlier this year, King reported profit of $568 million on sales of $1.9 billion, and the company valued itself at $7.6 billion; its worth, therefore, was estimated at approximately 13.3 times annual earnings. Relative to its current market cap, the company is valued at approximately 7.37 times earnings. Last year, Mojang generated $128 million of profit on $289 million in revenue, meaning Microsoft would pay approximately 19.5 times the company's last annual earnings if it spends $2.5 billion on the acquisition.

Given the histories of, and problems associated with, companies that are so dependent on one game, the price Microsoft will reportedly pay for Mojang can start to look unreasonable. That said, the small company and its Minecraft game offer Microsoft significant resource and positional benefits. Mojang is one of very few companies to bridge the divide between console and mobile markets with a single title, and Nadella's comments on the future of Xbox and mobile suggest the developer is a strong fit with Microsoft's goals.

Foolish thoughts
The notion of paying more than $2 billion to acquire a company that is primarily known for one game is sure to raise some eyebrows; but Mojang and Minecraft may be a special case. Very few titles in the history of gaming have shown evidence of comparable staying power, and few have a similar potential to aid Microsoft's aim of bringing its existing gaming resources together with its mobile and cloud focus. If Mojang can engineer successful follow-ups to its megahit, inside the series and beyond it, the company would justify its asking price and be a significant asset for Microsoft.

The real winner is behind the Apple Watch (warning, it may shock you)
Apple recently revealed the product of its secret-development "dream team" -- Apple Watch. The secret is out, and some early viewers are claiming its everyday impact could trump the iPod, iPhone, and the iPad. In fact, ABI Research predicts 485 million of this type of device will be sold per year. But one small company makes Apple's gadget possible. And its stock price has nearly unlimited room to run for early-in-the-know investors. To be one of them, and see where the real money is to be made, just click here!

Last Week's Top Stock Movers: Scanning for Profits; ITT Fails

Alamy There are plenty of stocks going up -- and down -- in any given week. The gainers inspire us to keep investing. The decliners keep greed in check while reminding us about the risks of the equity markets. Let's go over some of last week's best and worst performers. Pike (PIKE) -- Up 49 percent last week The market's biggest winner of last week was Pike, a specialty construction and engineering firm that received a bid to be taken private. J. Eric Pike -- the firm's chairman and CEO -- is teaming up with private equity firm Court Square Capital Partners to buy out shareholders at $12 a share. It's a fair premium, pricing the buyout at a better than 50 percent premium to where the stock was trading when it was announced. A few attorneys are trying to smoke out investors who feel that the CEO-led privatization push isn't fair, but it's likely to stick at that kind of healthy markup. Pike shares may have traded in the low teens last summer, but that was before revenue and earnings began heading the wrong way. Most shareholders should be more than happy to take the money and run. RadNet (RDNT) -- Up 34 percent last week Operating a network of 251 facilities that perform outpatient diagnostic imaging services is looking good for RadNet. The stock moved sharply higher after a strong quarterly report. Revenue inched slighting higher as MRI and CT scan volume increased modestly during the period. However, the real star in the report was RadNet's bottom line. Its cost-cutting and debt-slashing efforts paid off with net income soaring to $0.12 a share after clocking in at a $0.07 a share a year earlier. Analysts were only holding out for $0.05 a share. RadNet also helped improve its standing by boosting its guidance for all of 2014. You don't need any of RadNet's fancy imaging equipment to see that that's a healthy sign. Trex (TREX) -- Up 25 percent last week It was a good week for a pair of home improvement specialists. Shares of CaesarStone (CSTE) moved 20 percent higher after the maker of quartz slabs used in kitchen countertops experienced a 55 percent spike in sales. However, the bigger mover was Trex, the country's leading maker of wood-alternative decking materials. Trex impressed by posting revenue and adjusted earnings growth of 23 percent and 62 percent, respectively. The company behind the long-lasting weather-resistant outdoor decks also issued revenue guidance for the new quarter that was just ahead of what analysts were forecasting. ITT Educational Services (ESI) -- Down 40 percent last week The market's biggest decliner was ITT Educational Services. The for-profit educator plunged after an asset sale came undone. A deal was in place three months ago for ITT to sell as many as two dozen of its sites and then lease them back. The move would've helped fortify ITT's liquidity. Unfortunately the deal fell apart, and ITT's CEO stepped down in the aftermath. RetailMeNot (SALE) -- Down 32 percent last week It was a rough week for RetailMeNot, whose stock markdown became a deal worthy of the site itself. RetailMeNot operates a popular website where website coupon codes are published. It posted another quarter of analyst-besting results on the bottom line, but revenue fell short of expectations. It also warned of a sequential slide in the new quarter when the pros were holding out for a gain. RetailMeNot relies on organic traffic generation, and an algorithm change at Google (GOOG) earlier this year appears to be reducing traffic to the site. Hanger (HGR) -- Down 28 percent last week It was easy to foresee that it would be a down week for Hanger when it announced on Tuesday afternoon that it would be delaying its quarterly results announcement until Thursday. The maker of orthotic and prosthetic devices needed some more time to complete the accounting for its cost of materials estimate. The eventual report was a disappointment. Revenue and earnings fell short of Wall Street targets, and Hanger went on to lower its outlook for the entire year. More from Rick Aristotle Munarriz
•Why Your Local Redbox Kiosk Just Disappeared •Zynga and Groupon Are the Duds of the IPO Class of 2011 •Wall Street This Week: Are SeaWorld, King Recovering?

GoPro Investors Can’t Ignore These 3 Key Problems

GoPro (NASDAQ: GPRO  ) has loomed large in headlines recently -- the company recently introduced a $60 dog harness to let canines capture video, and fans are buzzing about its upcoming HERO4 camera.

Source: GoPro

GoPro's stock, however, has been a divisive topic among investors. Although the stock has more than doubled from its IPO price of $24, the company's lack of competitive barriers, widening losses, and high valuations have raised concerns. Let's dig deeper into GoPro's three main weaknesses to see if those concerns are justified.

Enemies at the gates
GoPro's biggest weakness is its lack of competitive barriers. Research firm IDC estimates that GoPro has a 47.5% market share in the action camera market, but the market is still young and fragmented. This means that smaller players will constantly try to launch cheaper devices to chip away at GoPro's market.

Polaroid recently launched the Cube, a $100 block-like video camera with a magnet with attaches to any metal surface. It can record 90 minutes of wide-angle 1080p video on a single charge, uses a 6-megapixel camera, and can be mounted almost anywhere. The cheap price of the Cube is troubling for GoPro, since its features are comparable or superior to the HERO3, which costs between $200 to $400. The $200 White Edition HERO3 can record 1.5 to 3 hours of video on a single charge, depending on usage, and uses a 5-megapixel camera.

Polaroid also recently launched the higher-end XS100i, which beats the HERO3 in both price and performance. The $180 XS100i sports a 16-megapixel camera, compared to the 12-megapixel camera on the $400 HERO3+ Black Edition. Both devices are waterproof, and can record continuously for 1.5 to 2.5 hours.

Polaroid's Cube (L) and XS100i (R). Source: Polaroid

If competitors like Polaroid are already delivering better performance for half the price, other competitors won't be far behind.

GoPro needs to cut costs to remain competitive
When that attack happens, GoPro's margins could crumble as it tries to fend off the competition. To preserve its margins, it needs huge manufacturing operations to produce more cameras quickly and cheaply.

GoPro's best potential partner is Foxconn, which acquired an 8.88% stake in the company in December 2012. Although many assumed that investment meant Foxconn would manufacture GoPro's cameras, the two companies still haven't signed a deal yet. For now, GoPro CEO Nick Woodman has signed with other smaller contract manufacturers like Taiwan's Chicony Electronics. Speaking to Bloomberg, Woodman also noted that GoPro could also afford to develop its own technology with its staff of 300, compared to a staff of only three prior to 2011.

GoPro CEO Nick Woodman. Source: Wikimedia Commons

But considering that GoPro's net loss of $19.8 million last quarter was nearly four times its loss of $5.1 million a year earlier, it's clearly having issues balancing its revenue with expenses. Research and development costs soared 108% year over year to $34.7 million, sales and marketing costs climbed 12% to $43.7 million, and general and administrative expenses jumped 484% to $41.2 million.

This means that when competitors start undercutting GoPro's cameras, the company's bottom line can't hold up unless it cuts costs through major alliances with giants like Foxconn.

Media is not the answer
Although GoPro's competitive and manufacturing issues remain unresolved, the company stubbornly believes that evolving into a media company will help it grow beyond action cameras.

That fledgling effort, the GoPro Network, is a video channel of user-submitted content that is hosted on Facebook, Instagram, Pinterest, Virgin America, Xbox 360, and Google's (NASDAQ: GOOG  ) (NASDAQ: GOOGL  ) YouTube. During its IPO filing, the company disclosed that the network won't generate any material revenue in 2014, despite having 2.2 million subscribers on YouTube. The network is still growing -- last quarter, the number of GoPro videos published on YouTube rose 160% year over year, views rose 200%, and total minutes watched climbed 270%. 

While the GoPro Network is a great way to build brand awareness, it doesn't make sense as a full business expansion. Since GoPro is relying heavily on other social networks and platforms to grow the network, it has to split ad revenue with those partners. YouTube, for example, takes an average cut of 45% from its partners.

The only way for the GoPro Network to become a stable pillar of growth is for the company to launch its own dedicated video site. But the high costs of hosting millions of videos could easily offset any revenue gained from ads.

The Foolish takeaway
When we look at GoPro's cheaper competition, its lack of larger contract manufacturing partnerships, and its misguided belief that online video channels will become a meaningful source of revenue, we can see how hard it can be to justify the stock's forward P/E of 50 and price-to-book ratio of 83.

That's not to say that GoPro won't ever become a great growth stock, but investors should have realistic expectations about the challenges that it could soon face before diving in.

Leaked: Apple's next smart device (warning, it may shock you)
Apple recently recruited a secret-development "dream team" to guarantee its newest smart device was kept hidden from the public for as long as possible. But the secret is out, and some early viewers are claiming its everyday impact could trump the iPod, iPhone, and the iPad. In fact, ABI Research predicts 485 million of this type of device will be sold per year. But one small company makes Apple's gadget possible. And its stock price has nearly unlimited room to run for early in-the-know investors. To be one of them, and see Apple's newest smart gizmo, just click here!