Morning Movers: Energizer Surges on Planned Split; Panera Slides on Sales Disappointment

Stocks have dipped slightly this morning after U.S. gross-domestic product barely rose during the first quarter. The market, however, is also waiting to hear from the Federal Reserve this afternoon.

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S&P 500 futures have dipped 0.1%, while Dow Jones Industrial Average futures are off just 2 points.Nasdaq Composite futures have fallen 0.3%.

U.S. GDP rose just 0.1%, well below forecasts for 1.1%. Blame the weather.

Energizer Holdings (ENR) has jumped 18% to $115 after it said it planned to split itself in two.

Pepco (POM) has surged 18% to $26.87 after it agreed to be purchased by Exelon (EXC) for $27.25 a share in an all-cash deal. Exelon has dropped 2.4% to $35.31.

Panera Bread (PNRA) has dropped 5.5% to $154.23 after beating earnings forecasts, but reporting tepid same-store-sales growth and offering disappointing guidance.

GlaxoSmithKline (GSK) has fallen 1.8% to $55.38 after reporting sluggish sales.

 

Top 10 Logistics Companies To Invest In Right Now

German workers are not happy with Amazon.com Inc. (NASDAQ: AMZN) — again. In May 500 warehouse workers affiliated with the Ver.di union walked off the job at two Amazon warehouses in Germany. Workers walked off the job again Monday, repeating their demand that they be paid wages according to the national standard for the mail order and retail sectors. Amazon classifies the employees as logistics workers and the company said its employees are paid above average wages for that classification.

In the U.S. Amazon pays its warehouse associates an average of $11.71 according to website Glassdoor.com. For a full-time employee that amounts to a little less than $24,500 annually. The total number of reports from Amazon warehouse workers is just 57, so the sample is pretty small. Thirteen employees also reported received cash bonuses averaging $1,027. Not a king�� ransom by any means, but it is higher than the wages paid by some other large U.S. employers.

Wal-Mart Stores Inc. (NYSE: WMT), which will be the target of strikes and protests on Black Friday, pays an average of $8.86 an hour according to figures at Glassdoor, or a full-time annual salary of about $18,500. Glassdoor reports that 53 employees reported receiving cash bonuses averaging $629 and 30 employees reported profit-sharing payments averaging $598. The workers who are striking against Walmart have demanded that the company raise full-time annual salaries to a minimum of $25,000, roughly what Amazon pays.

Top 10 Logistics Companies To Invest In Right Now: Laclede Group Inc (LG)

The Laclede Group, Inc. (Laclede Group), incorporated on October 18, 2000, is a utility holding company. The Company operates in two segments: Regulated Gas Utility and Gas Marketing. The Gas Utility segment includes the regulated operations of Laclede Gas Company (Laclede Gas or the Utility), Laclede Group's subsidiary and core business unit. Laclede Gas is a public utility engaged in the retail distribution and sale of natural gas. Laclede Gas is the natural gas distribution utility in Missouri, serving more than 1.13 million residential, commercial, and industrial customers. The Gas Marketing segment includes Laclede Energy Resources, Inc. (LER), a wholly owned subsidiary is engaged in the marketing of natural gas and related activities on a non-regulated basis. Effective September1, 2013, Laclede Group Inc through its newly formed subsidiary acquired Missouri Gas Energy, a provider of natural gas distribution services.

Gas Utility

The Utility focuses its gas supply portfolio around a number of natural gas suppliers with equity ownership or control of assets strategically situated to complement its regionally diverse firm transportation arrangements. During fiscal year ended September 30, 2013 (fiscal 2013), the Utility purchased natural gas from 35 different suppliers to meet current gas sales and storage injection requirements. Natural gas purchased by the Laclede Gas for delivery to its service area through the Enable Mississippi River Transmission LLC (MRT) system totaled 55.0 billion cubic feet (Bcf). Laclede Gase also holds firm transportation on several other interstate pipeline systems that provide access to gas supplies upstream of MRT. In addition to deliveries from MRT, 8.6 Bcf of gas was purchased on MO Gas, 13.4 Bcf on the Southern Star Central Gas Pipeline, Inc. (Southern Star Central), 0.03 Bcf on the Panhandle Eastern Pipe Line Company system, and 0.1 BCF on the Postrock system. Some of the Utility�� commercial and industrial customers purchased their own! gas with the Utility transporting 17.0 Bcf to them through the Utility�� distribution system.

The Utility has a contractual right to store 23.1 Bcf of gas in MRT�� storage facility located in Unionville, Louisiana, 16.3 Bcf of gas storage in Southern Star Central system storage facilities located in Kansas and Oklahoma, and 1.4 Bcf of firm storage on Panhandle Eastern Pipe Line Company�� system storage. In addition, the Utility supplements flowing pipeline gas with natural gas withdrawn from its own underground storage field located in St. Louis and St. Charles Counties in Missouri.

Gas Marketing

LER is engaged in the marketing of natural gas and providing energy services to both on-system utility transportation customers and customers outside of the Utility�� traditional service area. During fiscal year 2013, LER utilized 12 interstate pipelines and 93 suppliers to market natural gas to its customers primarily in the Midwest. LER served more than 205 retail customers and 100 wholesale customers. Through its retail operations, LER offers natural gas marketing services to large industrial customers, while its wholesale business consists of buying and selling natural gas to other marketers, producers, utilities, power generators, pipelines, and municipalities. LER also serves power plants that use natural gas to generate electricity.

OTHER

Laclede Pipeline Company, a wholly owned subsidiary, operates a propane pipeline under Federal Energy Regulatory Commission (FERC) jurisdiction. This pipeline connects the propane storage and vaporization facilities of the Utility to third-party propane supply terminal facilities located in Illinois, which allows the Utility to receive propane that is vaporized to supplement its natural gas supply and meet peak demands on its distribution system. Laclede Pipeline Company also provides transportation services to third parties. Other also includes Laclede Group�� subsidiaries that are engaged in,! among ot! her activities, oil production, real estate development, compression of natural gas, and financial investments in other enterprises. These operations are conducted through seven subsidiaries.

The Other category also includes the Utility�� non-regulated propane services business which involves providing propane-related services and storage to third parties and its affiliate, Laclede Pipeline Company. Beginning July 1, 2013, propane-related services are included within Gas Utility operations pursuant to the Utility's new rate case.

Advisors' Opinion:

• [By Ahmed A. Namatalla]

  Egypt�� biggest publicly traded company agreed to pay about 7 billion Egyptian pounds ($1 billion) over five years to settle the tax dispute on the sale of its cement unit to Lafarge SA (LG) in 2007, Amsterdam-based parent OCI NV said yesterday. The payments will start in May and end in 2017. OCI NV shares had the biggest increase since the company�� Dutch public offering in January.

• [By Laura Brodbeck]

  Earnings Releases Expected:�Nuance Communications, New Jersey Resources Corporation (NYSE: NJR), Laclede Group, Inc. (NYSE: LG)

  Economic Releases Expected:�U.S. pending home sales, Italian trade balance, Swiss employment level

Top 10 Logistics Companies To Invest In Right Now: Conatus Pharmaceuticals Inc (CNAT)

Conatus Pharmaceuticals Inc., incorporated on July 13, 2005, is a biotechnology company focused on the development and commercialization of medicines to treat liver disease. The Company is developing its lead compound, emricasan, for the treatment of patients in orphan populations with chronic liver disease and acute exacerbations of chronic liver disease. The Company has designed a clinical program to demonstrate the therapeutic benefit of emricasan across the spectrum of fibrotic liver disease. The Company�� initial development strategy targets indications for emricasan with high unmet clinical need in orphan patient populations, such as patients with acute-on-chronic liver failure (ACLF), chronic liver failure (CLF), and patients who have developed liver fibrosis post-orthotopic liver transplant due to Hepatitis C virus infection (HCV-POLT).

The Company has completed two placebo-controlled Phase II trials in patients with liver disease showing reductions in ALT levels that occur rapidly, within as little as one day after initiation of therapy, and are maintained throughout the treatment period. In the Company�� 204-patient Phase 2b trial, it also measured cCK18, an important biomarker of apoptosis and disease severity. Emricasan has been generally well-tolerated in all of the clinical studies. As of July 23, 2013, the Company had not generated any revenue.

Advisors' Opinion:

• [By Lauren Pollock]

  Conatus Pharmaceuticals Inc.'s(CNAT) shares jumped 26% to $7.75 premarket after the biotechnology firm said its treatment for chronic liver disease has been granted a status that could mean quicker approval.

Top 5 International Companies To Buy For 2015: Furniture Brands International Inc. (FBN)

Furniture Brands International, Inc. engages in designing, manufacturing, sourcing, and retailing home furnishings in the United States and internationally. The company offers case goods, such as bedroom, dining room, and living room wood furniture; stationary upholstery products comprising sofas, loveseats, sectionals, and chairs; and motion upholstered furniture, including recliners and sleep sofas. It also provides occasional furniture, such as accent pieces, home entertainment centers, and home office furniture, as well as wood, metal, and glass tables; and decorative accessories and accent pieces. The company�s brand portfolio includes Thomasville, Broyhill, Lane, Drexel Heritage, Henredon, Pearson, Hickory Chair, Lane Venture, Maitland-Smith, La Barge, and Creative Interiors. It markets its products through its Thomasville retail stores, interior designers, multi-line/independent retailers, and mass merchant stores to retailers, including independently owned furnitu re stores, department stores, and chains. The company was formerly known as Interco Inc. and changed its name to Furniture Brands International, Inc. in 1996. Furniture Brands International, Inc. was founded in 1921 and is headquartered in St. Louis, Missouri.

Advisors' Opinion:

• [By Sally Jones]

  Here�� a look at what goes inside those new homes: new furniture. As furniture makers increase outsourcing and the U.S. manufacturing sector declines, investors must be wondering about the future of American furniture companies. Trading histories show Guru billionaires have taken years of losses, especially in the case of Furniture Brand International Inc. (FBN), but the recent insider trades at Furniture Brand may be some indication of what we can expect from Guru shareholders when their second quarter trading activity in this sector is revealed.

• [By FoxBusiness]

  In an interview to appear on FOX Business Network�� (FBN) Countdown to the Closing Bell (3PM/ET), Citigroup CEO Michael Corbat speaks with anchor Liz Claman about the company�� recovery. Corbat says, �� think when we look back, we've done a pretty monumental transformation of the company��and that ��e feel like we've got the right business model and the right mix of businesses.��Corbat also comments on cyber security saying, �� think the threat of cyber security is absolutely real��and that this is ��n area where we dedicate a lot of resources, people, hours, money, to making sure that we've got the best technology.��/p>

Top 10 Logistics Companies To Invest In Right Now: Avon Products Inc. (AVP)

Avon Products Inc. manufactures and markets beauty and related products worldwide. Its product categories include color cosmetics, fragrances, skin care, and personal care; fashion jewelry, watches, apparel, footwear, and accessories; and gift and decorative products, housewares, entertainment and leisure, and children?s and nutritional products. Avon Products Inc. markets its products through direct selling and independent representatives, as well as through distributorships. The company was founded in 1886 and is based in New York, New York.

Advisors' Opinion:

• [By Ben Levisohn]

  The Dow Jones Industrial Average dropped 0.5% to 15,545.75, led by big drops in Visa –down 3.5% after releasing disappointing earnings–JPMorgan Chase–off 2% after it and other large banks were sued by Fannie Mae–and American Express (AXP), which fell 1.6% to $81.80. The S&P 500 fell 0.4% to 1,756.54, as Avon (AVP)� plunged 22% on bad earnings and the likelihood of a larger-than-expected settlement with the SEC, and MetLife (MET) dipped 3.5% on disappointing earns and said it would no longer offering future guidance.

Top 10 Logistics Companies To Invest In Right Now: Cutwater Select Income Fund (CSI)

Rivus Bond Fund (the Fund), formerly known as 1838 Bond-Debenture Trading Fund, is a diversified closed-end management investment company. The primary objective of the Fund is to maintain high level of income. Its portfolio includes long-term debt securities, including mortgage-backed securities and asset-backed securities. Effective July 7, 2006, the 1838 Bond-Debenture Trading Fund merged with and into the Rivus Bond Fund.

The Fund invests in various sectors, including automotive, chemicals, diversified financial services, energy, insurance, media, mining, real estate investment trusts, telecommunications, utilities and transportation. MBIA Capital Management Corp. serves as the investment advisor of the Fund.

Advisors' Opinion:

• [By Sold At The Top]

  Today's release of the S&P/Case-Shiller (CSI) home price indices for August reported that the non-seasonally adjusted Composite-10 price index rose a notable 1.33% since July while the Composite-20 index also increased 1.32% over the same period.

Top 10 Logistics Companies To Invest In Right Now: Unifirst Corporation(UNF)

UniFirst Corporation, together with its subsidiaries, provides workplace uniforms and protective work wear clothing in the United States, Canada, and Europe. The company designs, manufactures, personalizes, rents, cleans, delivers, and sells a range of uniforms and protective clothing, including shirts, pants, jackets, coveralls, lab coats, smocks, and aprons; and specialized protective wear, such as flame resistant and high visibility garments. It also rents industrial wiping products, floor mats, facility service products, and restroom supplies comprising air fresheners, paper products, and hand soaps, as well as other non-garment items. In addition, the company provides first aid cabinet services and other safety supplies; decontaminates and cleans work clothes that may have been exposed to radioactive materials; and services special clean room protective wear. Further, it offers a range of garment service options, including full-service rental programs in which garment s are cleaned and serviced; lease programs in which garments are cleaned and maintained by individual employees; and purchase programs to buy garments and related items directly. The company serves automobile service centers and dealers, delivery services, food and general merchandise retailers, food processors and service operations, light manufacturers, maintenance facilities, restaurants, service companies, soft and durable goods wholesalers, transportation companies, and others who require employee clothing for image, identification, protection, or utility purposes, as well as government agencies, research and development laboratories, high technology companies, and utilities operating nuclear reactors. The UniFirst Corporation was founded in 1936 and is based in Wilmington, Massachusetts.

Advisors' Opinion:

• [By Eric Volkman]

  UniFirst (NYSE: UNF  ) is getting ready to issue a pair of dividend payouts. The company has declared quarterly common stock distributions for both its regular and its Class B shares. For the former, the firm will hand out $0.0375 per share, while for the latter $0.03 will be disbursed. Both will be paid on October 1 to holders of record as of September 10.

• [By Seth Jayson]

  Calling all cash flows
  When you are trying to buy the market's best stocks, it's worth checking up on your companies' free cash flow once a quarter or so, to see whether it bears any relationship to the net income in the headlines. That's what we do with this series. Today, we're checking in on UniFirst (NYSE: UNF  ) , whose recent revenue and earnings are plotted below.

Top 10 Logistics Companies To Invest In Right Now: Mackinac Financial Corporation(MFNC)

Mackinac Financial Corporation operates as the holding company for mBank that engages in commercial banking business. It offers interest bearing and non-interest bearing deposit products, including commercial and retail checking accounts, negotiable order of withdrawal accounts, money market accounts, individual retirement accounts, regular interest-bearing statement savings accounts, and certificates of deposit. The company?s loan portfolio comprises commercial real estate loans; commercial, financial, and agricultural loans; one-to-four family residential real estate loans; construction loans; and consumer loans. It operates 6 branch offices in the Upper Peninsula of Michigan, and 4 branch offices in Michigan?s Lower Peninsula; and also operates 10 automated teller machines. The company was founded in 1974 and is headquartered in Manistique, Michigan.

Advisors' Opinion:

• [By Marc Bastow]

  Michigan-based bank holding company Mackinac Financial (MFNC) raised its quarterly dividend 25% to 5 cents per share, payable on Jan. 8 to shareholders of record as of Dec. 30.
  MFNC Dividend Yield: 2.1%

Top 10 Logistics Companies To Invest In Right Now: Biosev SA (BSEV3)

Biosev SA, formerly LDC Bioenergia SA, is a Brazil-based company active in the sugar and energy business. It is primarily engaged in the sugarcane processing. The Company produces sugar and ethanol, and supplies its products to domestic and international markets. Its refined sugar is sold under the Estrela brand name on the Brazilian retail market. The ethanol products comprise: hydrous ethanol, anhydrous ethanol and neutral ethanol. Other products from its plants include animal feed, dry yeast, molasses powder and bioelectricity from sugarcane bagasse. The Company�� customers include Nestle, Coca-Cola, AmBev, Kraft, Dori and Unilever, among others. The Company's production units are present in five Brazilian states: Mato Grosso do Sul, Sao Paulo, Minas Gerais, Paraiba and Rio Grande do Norte. Advisors' Opinion:

• [By Lucia Kassai]

  Biosev SA (BSEV3), Louis Dreyfus Holding BV�� Brazil unit, tumbled in its debut after giving investors in its initial public offering a money-back guarantee.

Top 10 Logistics Companies To Invest In Right Now: Chiquita Brands International Inc. (CQB)

Chiquita Brands International, Inc., together with its subsidiaries, engages in the distribution and marketing of bananas and fresh produce under the Chiquita and other brand names worldwide. The company operates in three segments: Bananas, Salads and Healthy Snacks, and Other Produce. The Banana segment sources, transports, markets, and distributes bananas to retailers and wholesalers, and chain stores. It also engages in the cultivation and production of bananas. The Salads and Healthy Snacks segment offers value-added salads under the Fresh Express and other labels; and fresh vegetable and fruit ingredients used in foodservice, healthy snacks, and processed fruit ingredient products. This segment also provides fresh-cut products, such as lettuce, tomatoes, spinach, cabbage, and onions to foodservice distributors who resell these products to foodservice operators. It distributes Fresh Express branded products to food retailers, foodservice distributors, and quick-service restaurants; and fresh produce foodservice offerings primarily to third-party distributors for resale principally to quick-service restaurants in the United States. The Other Produce segment engages in sourcing, marketing, and distributing fresh fruits and vegetables other than bananas in Europe and North America. It offers grapes, pineapples, melons, kiwis, tomatoes, and avocados. The company was founded in 1899 and is headquartered in Cincinnati, Ohio.

Advisors' Opinion:

• [By Rich Smith]

  Charlotte, N.C.-based Chiquita Brands (NYSE: CQB  ) will soon have a new chief financial officer -- and a new chief operating officer, too. Sort of.

• [By Michael Lewis]

  In the ever-difficult, commoditized business of produce, Chiquita Brands International (NYSE: CQB  ) has been a constant player, if troubled in recent years. Margin pressure and a shift in industry trends left the company with weak financials and angry shareholders, but in the past 12 months much of that has turned around. In the midst of a restructuring and armed with a (relatively) new CEO, this company is pushing its 52-week highs but may be headed higher. Does the banana brand belong in your portfolio?

• [By Sara Murphy]

  Furthermore, the court's finding does not undermine the use of the ATS in cases of human rights abuses. It just requires a stronger connection to the United States. That means that other ATS cases currently working their way through the legal system, such as Earth Rights International's case against Chiquita (NYSE: CQB  ) for allegedly funding and arming Colombian terrorists, are still on track. That also means that the link from human rights violations to corporate liability remains.

Top 10 Logistics Companies To Invest In Right Now: PLX Technology Inc.(PLXT)

PLX Technology, Inc. designs, develops, manufactures, and sells semiconductor devices worldwide. It offers semiconductor devices, such as PCI express switches that allow aggregation of multi-channel Ethernet, fiber channel, graphics, and SAS cards to the host; PCI express bridges, which allow devices with other standards to be used in systems that need to interoperate with PCI express; and 10G Ethernet over copper PHY devices that provide a seamless migration from the slower connections to the faster ones. The company?s products also include direct attached storage products, which allow external storage to connect to a PC through USB connection; network attached storage products that provide storage to a local area network; PCI bridges consisting of general purpose bridges that translate and extend the PCI bus; and universal serial bus (USB) interface chips, which are used by computer peripherals and consumer products to interoperate through an external cabled connection. Its semiconductor devices accelerate and manage the transfer of data in microprocessor-based systems, including networking and telecommunications, enterprise storage, servers, personal computers (PCs), PC peripherals, consumer electronics, imaging, and industrial products. The company markets its products through direct and indirect sales force, manufacturers, and distributors to electronics manufacturers. PLX Technology, Inc. was founded in 1986 and is headquartered in Sunnyvale, California.

Advisors' Opinion:

• [By Seth Jayson]

  PLX Technology (Nasdaq: PLXT  ) reported earnings on April 22. Here are the numbers you need to know.

  The 10-second takeaway
  For the quarter ended March 31 (Q1), PLX Technology met expectations on revenues and beat expectations on earnings per share.

Is Sirius XM Radio Ready for a Breakout 2013?

Sirius XM (NASDAQ:SIRI), the biggest satellite-radio provider in the U.S., has been on a tear since the end of the financial crisis. After trading at as low as 6 cents in February 2009, the stock now trades 57 times higher at a price of $3.48. Can Sirius sustain its dominance in the satellite radio space in the long term? Let's use our CHEAT SHEET investing framework to decide whether Sirius is an OUTPERFORM, WAIT AND SEE, or STAY AWAY.

C = Catalysts for the Stock's Movement

Sirius's subscriber base grew a record 9 percent in 2012. The radio service has added around 5 million subscribers since 2008, mostly coming from new vehicle sales. Revenues increased 12 percent in the first quarter to $897.4 million. It is no surprise that Sirius profits from increased auto sales — about two-thirds of new cars come with a trial of Sirius, of which an estimated 45 percent of drivers choose to subscribe full-time. Last month, Ford (NYSE:F) announced a 13 percent gain in revenue, and analysts estimate that new auto sales will hit 15.5 million this year; but if vehicle sales slow this year, so too will Sirius's subscriber growth. Investors interested in Sirius should pay special attention to monthly auto sales data.

E = Earnings Growth is Mixed, but Revenue Growth is Increasing

Sirius has experienced sporadic revenue growth in the past several quarters, but it is important to note that it continues to beat analysts' estimates. Revenues have been more stable as Sirius has experienced sustainable quarter-over-quarter revenue growth. The renewed growth rate in auto sales should help Sirius continue its trend of increasing revenues. Additionally, it has maintained a steady operating margin of around 25 percent the past several quarters.

	2013 Q1	2012 Q4	2012 Q3	2012 Q2	2012 Q1
Qtrly. EPS	$0.02	$0.0225	$0.01	$0.48	$0.02
EPS Growth QoQ	-11.1%	125%	-97.9%	2300%	81.8%
Qtrly. Revenue	$897.4M	$892.42M	$867.36M	$837.54M	$804.72M
Rev. Growth QoQ	0.6%	2.9%	3.6%	4.1%	2.7%

T = Technicals Are Strong

Sirius is currently trading at around $3.50, above both its 200-day moving average of $3.20 and its 50-day moving average of $3.40. The company has experienced a strong uptrend over the past year and is just 4 percent from resetting its 52-week high of $3.63. Sirius, however, has attracted a relatively large amount of bears — around 10 percent of its shares outstanding are held by short sellers. Recently, the 50-day moving average line (in red) has been a reliable support level for the stock (i.e. the stock bounces back up after hitting this price). If the price moves too far below this level, the uptrend could be flattening or reversing.

Conclusion

Sirius will benefit in the near term from increased auto sales, a strong product line, and high barriers to entry in the satellite radio industry. Long term, Sirius could face competition from Pandora (NASDAQ:P) and Apple (NASDAQ:AAPL), as they will be able to offer in-car radio services at a cheaper price than Sirius. Additional downside risk to Sirius comes from Liberty Media, which holds a 51 percent stake in the company. Liberty plans on increasing Sirius's debt level, which will increase risk to shareholders. However, this is not likely to impact Sirius' core business. While Sirius has generated stable revenue growth, there are some potential risks to its future profitability. Auto sales are likely to slow by next year and competition in the satellite radio industry will only intensify. For now, Sirius is a WAIT AND SEE.

Should You Get a Credit Card After Bankruptcy?

If you've recently had a bankruptcy discharged, your mailbox may be filling with new credit card offers.

Although it seems counterintuitive, some companies actually seek out and market their cards to recently bankrupt individuals. That may be due in part to the fact that once you've declared bankruptcy, the law limits how quickly you can do it again, up to eight years in some cases.

However, just because you can get a credit card after bankruptcy, should you?

Using credit cards to rebuild a credit score
One of the best reasons to get a credit card after bankruptcy is to improve your credit score.

Your credit score is based upon several factors, including your payment history as well as how long your accounts have been open. Therefore, it can make sense to apply for a credit card immediately after bankruptcy to begin reestablishing your creditworthiness. However, be sure you wait until after your discharge is complete before submitting any applications.

Once you get a credit card, go ahead and use it to charge a reasonable amount of purchases each month. Since post-bankruptcy cards can carry hefty interest rates, you won't want to carry a balance. Instead, only charge what you can pay off each month.

It's important to keep an eye out for and stay away from subprime cards targeted at individuals with bad or limited credit. The hefty fees and high interest rates of some of these cards will eat away at the already small credit limit these cards offer.

What you should know about secured credit cards
Credit cards for bad credit and credit cards for limited credit are typically secured. That means you pay a deposit to the company before the card is issued, and that deposit is your line of credit. In addition, they may have an annual fee and higher interest rates than those offered on other cards.

While the terms may not be as appealing as those offered on unsecured cards, don't discount them completely. Issuers of secured credit cards will report your payments to credit bureaus and help boost your credit score the same as other cards. However, as with other credit cards, compare several options to be sure you are getting the lowest fees and interest possible.

And although they may appear similar, don't confuse secured credit cards with prepaid cards. Except in rare instances, prepaid cards don't report to the credit bureaus and won't help your score.

Why you might think twice about credit cards after bankruptcy
Individuals file bankruptcy for a variety of reasons, from unemployment to medical emergencies to overspending. If overspending is what led you to bankruptcy court, you may want to carefully consider whether to apply for a new card.

Credit cards can be powerful tools to rebuild your finances, but they need to be used responsibly. Be honest about your ability to limit your spending and pay off your balance each month.

If you aren't sure, try to secure a card by self-funding a low credit limit. A low-limit card may help you test the waters without letting you get in over your head. If you reach a month where you can't pay off the balance, put the card away until you can.

Bankruptcy can be a stressful experience and most certainly will impact your credit score. However, it isn't permanent, and your credit can be salvaged.

The original article Should You Get a Credit Card After Bankruptcy? appeared on CardRatings.com

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Buffalo Wild Wings Leading on Tech Innovation

Buffalo Wild Wings Inc. (BWLD) owns, operates and franchises a chain of more than 900 casual dining restaurants across the United States and Canada. Buffalo Wild Wings has a strong brand prospect and is considered one of the most popular casual dining restaurant chains – with a dine and watch concept and 40 television sets per outlet. The company offers its chicken wings, hamburgers, sandwiches, salads and beers until 2am. Not only sports fan love Buffalo but also families which enjoy taking their children to restaurants where their children can watch TV and play videogames.

Its franchising system allows the company to safeward earnings. With more than 50% of its business franchised, the company reduces capital requirements and facilitates EPS growth and ROE expansion. Moreover, it also allows increasing free cash flow, which permits Buffalo to reinvest in brand recognition, and shareholder return.

Despite the unstable economic scenario, the company has managed to keep posting positive results, being well position within the market as to sustain its same-stores sales growth. Fourth quarter 2013 earnings of $1.10 were above estimations, increasing 23.6% versus 2012, driven by an increase in the top line and lower costs of sales. The new menu launches and marketing strategies are likely to continue boosting the company's sales, and the recent association with NCAA will further increases visibility.

Innovations

Buffalo Wild Wings has been investing in new product development. New menu items such as rib slammers, flat breads and Sam Adams Rebel IPA, the company's new beer, Buffalo, has been able to enhance its menu and attract more customers. It has also successfully changed its traditional way of menu serving chicken wings, with new weight based portions. These efforts have resulted on improved margins and more stable earnings.

Another initiative introduced in the guest experience business model is the installment of tablets in all of its restaurants to provide exclusive social gaming opportunities. Teaming up with NTN Buzztime Inc. (NTN) Buffalo uses Beond tablets to allow guests order food and drinks, play games, and pay their bill. Also, the three-year collaboration with National Collegiate Athletic Association (NCAA) has enabled the company to be an authorized hangout for the NCAA March Madness sports series, increasing visibility as a brand and attracting more customers to their outlets. These efforts, along with more intense advertising initiatives, new point-of-sales programs, improved supply chain and remodeling of its restaurants are expected to boost sales, and strengthen the business in the long run. Buffalo Wild Wings has selected the NCR Corp. (NCR) Aloha Online Ordering solution for its locations to help drive its takeout ordering business. The NCR technology will enable Buffalo to handle both on and off-premise transactions within one system.

Expansion

The company has also been focusing on store opening. Despite the macroeconomic uncertainty, Buffalo has kept with this initiative, and has witnessed unit growth of nearly 11.6% in 2011, 9.1% in 2012 and 10.9% in 2013. Moreover, associations are on track, and the company has acquired a minority stake in PizzaRev, launching in 2012 PizzaRev fast-casual pizza restaurant, with a Craft Your Own initiative. The company plans to open two more PizzaRev units in Minneapolis in 2014 and a few more outlets by the end of 2014. Another partnership on track is with Pepsico Inc. (PEP) and Dr. Pepper Snapple Group, Inc. (DPS) to serve drinks across all its locations. Through these partnerships, Buffalo Wild Wings is developing new sauces and salad dressings for the restaurant chain, like the Mountain Dew-flavored salad dressing and Doritos-flavored wing sauce. These partnerships are expected to increase visibility and improve guest traffic as well.

Economic setbacks

Macroeconomic uncertainties are always threatening restaurant industry companies, as the budget cuts, the high tax rates and tightened credit availability hurt consumer discretionary spending. In addition, the strong competition amid this industry intensifies margin pressures. Still, Buffalo Wild Wings margins are improving given their new initiatives. But the increased expenses and investments to fuel long-term growth might hurt profits in the near term.

The company's revenue missed analysts' estimates last quarter, but its traffic remained very strong. Top line increased year over year, and total revenue increased 12.4%, despite missing estimations of $345.0. Still, the growth of Buffalo Wild Wings has been outstanding: from 553 locations to more than 1,000 restaurants today, for a 12% compounded annual growth rate in locations.

Bottom line

The company has recently been developing numerous initiatives to attract more customers and enhance its brand furthermore. Improving its facilities, introducing technology and with different marketing campaigns, Buffalo is likely to keep in a highly competitive position and boost its sales. Buffalo Wild Wings' comparable-store sales increased 5% and its profit grew an astonishing 25%.

Disclosure: Damian Illia holds no position in any of the stocks mentioned

About the author:Damian IlliaA fundamental analyst at Lonetreeanalytics.com constantly looking for value and income investments.

Visit Damian Illia's Website

Currently 5.00/512345 Rating: 5.0/5 (1 vote)

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U.S. factories more competitive, study says

WASHINGTON — U.S. manufacturers have grown more competitive over the past decade compared with factories in China, Brazil and most of the world's other major economies.

So says a new private study, which found that rising wages and higher energy costs have diminished China's long-standing edge over the United States. So has a boom in U.S. shale gas production. It's reduced U.S. natural gas prices and slowed the cost of electricity.

NEW: USA TODAY's live markets blog

STOCKS FRIDAY: How markets are doing

The Boston Consulting Group is issuing a report Friday on its study of manufacturing costs in the 25 biggest exporting countries. Only seven of those countries had lower manufacturing costs than the United States did this year. And since 2004, U.S. manufacturers have improved their competitiveness compared with every major exporter except India, Mexico and the Netherlands.

In 2004, for example, manufacturing in China cost 14% less than manufacturing in the United States. By this year, the China advantage had narrowed to 5%. If the trends continue, Boston Consulting found, U.S. manufacturing will be less expensive than China's by 2018.

Over the past decade, labor costs, adjusted to reflect productivity gains, shot up 187% at factories in China, compared with 27% in the United States. The value of China's currency has risen more than 30% against the U.S. dollar over the past decade.

The higher Chinese currency made goods produced in China and sold abroad comparatively more expensive. And foreign goods became comparatively more affordable in China.

Chinese electricity costs rose 66%, more than double the United States' 30% increase. The start of large-scale U.S. shale gas production in 2005 has helped contain electricity bills in the United States and neighboring Canada and Mexico.

China, too, has reserves for shale gas. But it will need years to develop them.

"This is not something you can turn on overnight," said Justin Rose, a partner at Bosto! n Consulting and co-author of the study.

Brazil has lost even more ground than China. In 2004, manufacturing was 3% cheaper in Brazil than in the United States. By 2014, Brazil was 23% more expensive. Brazilian factories didn't improve efficiency enough to offset rising energy and labor costs.

The countries where manufacturing was cheaper than in the United States are Indonesia, India, Mexico, Thailand, China, Taiwan and Russia.

Australia was the most expensive country for manufacturing. Its costs were 30% higher than those in the United States.

The survey doesn't include transportation costs, which vary depending on where goods are shipped. Several countries also face obstacles not captured by Boston Consulting's manufacturing cost index — from corruption to inefficient government bureaucracies.

Richest Colleges: What Makes an Endowment Outperform?

Endowments with active management receive higher returns net of fees from U.S. equity allocations, according to a new white paper released by Commonfund Institute.

Commonfund conducted a longitudinal analysis of the NACUBO-Commonfund Study of Endowments results from 2006 to 2013 to evaluate whether active management was related to higher endowment returns in U.S. equities over time.

Researchers also analyzed the data to evaluate which endowment characteristics were related to higher levels of performance over time.

ThinkAdvisor presented the 20 richest colleges in the 2013 NACUBO-Commonfund Study last week.

The white paper said active management for endowments was significantly positively related to higher returns net of fees from U.S. equity allocations over the evaluation period.

Moreover, endowments with chief investment officers or offices of CIOs were better able to earn incremental positive returns from active management than those without them.

In addition, larger endowments were better able to earn incremental positive returns from active management than the smallest endowments. However, the effect appeared to diminish as endowments increased in size.

Researchers determined that the effectiveness of an actively managed investment portfolio depended not only on the skill of the investment managers, but also on how truly active they were.

The paper said many mutual funds purport to be actively managed, but stay fully invested regardless of market conditions, with only minor allocation adjustments over time.

This is because they are “closet indexers” — funds whose portfolios look like indexes and whose performance is very closely correlated to an index.

Active Investors and Managers

The white paper noted that active investors need the ability to evaluate managers’ opportunity sets in different economic environments and to allocate dynamically to managers whose style is suited to the expected market environment.

As well, active investors need to perform ongoing analysis of active manager fund holdings in order to detect style drift or closet indexing.

Endowments, the paper said, are a specific type of long-term, sophisticated institutional investor whose distinct objectives and risk tolerances make them uniquely capable of capturing the long-term benefits of active management.

For their part, active managers have risk characteristics that match well with endowment risk appetite, according to the study. These risks are typically slightly higher volatility, somewhat lower liquidity and higher portfolio concentration than passive managers.

 

 

Apple Jumps on Earnings Beat, Stock Split

Updated from 4:08 p.m. to include comments from the conference call and updated share price.

NEW YORK (TheStreet) -- Apple (AAPL) shares jumped after the tech giant posted fiscal second-quarter earnings that beat Wall Street estimates, and announced a 7 for 1 stock split.

Apple reported second-quarter earnings of $11.62 a share, generating $45.6 billion in revenue. The company shipped 43.7 million iPhones, 16.4 million iPads, and shipped 4.1 million Macs during the quarter. Gross margin, a highly watched level for Apple, came in at 39.3%. On the conference call, Apple noted there are more than 800 million iTunes accounts, up from a previous number of around 600 million.

Apple CEO Timothy D. Cook noted on the call that Apple has sold more than 20 million Apple TV set-top boxes since the product was introduced. For the fiscal third quarter, Apple said it expects revenue between $36 billion and $38 billion, with gross margins between 37% and 38%. Operating expenses will be between $4.4 billion and $4.5 billion, and it will have a tax rate of 26.1%. Shares were soaring in after-hours trading, gaining 7.7% to $564.99.
WATCH: More market update videos on TheStreet TV | More videos from Kori Hale "We're very proud of our quarterly results, especially our strong iPhone sales and record revenue from services," said Cook in the earnings press release. "We're eagerly looking forward to introducing more new products and services that only Apple could bring to market." "We generated $13.5 billion in cash flow from operations and returned almost $21 billion in cash to shareholders through dividends and share repurchases during the March quarter," said Peter Oppenheimer, Apple's CFO, in the release. "That brings cumulative payments under our capital return program to $66 billion." Analysts surveyed by Thomson Reuters were expecting the Cupertino, Calif.-based Apple to report earnings of $10.18 a share on $43.53 billion in revenue, as Apple continues to promise new products and new categories. Apple also announced that it was upping its capital allocation program to over $130 billion by the end of calendar year 2015. As part of the program, the Board increased its share repurchase authorization to $90 billion from $60 billion, and boosted its quarterly dividend by 8% to $3.29 a share. "The Company also plans to increase its dividend on an annual basis. With annual payments of $11 billion, Apple is among the largest dividend payers in the world," the company said in the release. From August 2012 through March 2014, Apple has spent $66 billion in cash on its capital return program. Apple will access the public debt markets this year to help paying for the program, and raise an "amount of term debt similar to what the Company raised during 2013." "We are announcing a significant increase to our capital return program," Cook said, when discussing the allocation program. "We're confident in Apple's future and see tremendous value in Apple's stock, so we're continuing to allocate the majority of our program to share repurchases. We're also happy to be increasing our dividend for the second time in less than two years." "We believe our current stock price does not reflect the true value of the company," both Cook and new CFO Luca Maestri said on the call. The Board of Directors also announced a seven-for-one stock split, effective June 2, 2014. Shares will will begin trading on a split-adjusted basis on June 9, 2014. On the conference call, Cook noted Angela Ahrendts, the former CEO of Burberry, would be joining Apple's executive team next week, as she helps to lead Apple's retail stores.

Shares of Apple closed the regular session lower, falling 1.3% to close at $524.75. --Written by Chris Ciaccia in New York >Contact by Email. Follow @Chris_Ciaccia

Stock quotes in this article: AAPL 

The iPhone Can't Fix T-Mobile's Identity Crisis

Getting the right to offer the iPhone no longer has the power to lift a mobile carrier above the rest of the field. Despite making their pacts with Apple (NASDAQ: AAPL  ) , Nos. 3 and 4 U.S. mobile carriers Sprint Nextel (NYSE: S  ) and T-Mobile US (NYSE: TMUS  ) , respectively, are still being surprassed by the top two, AT&T (NYSE: T  ) and Verizon (NYSE: VZ  ) .

And nowhere is the lost luster of the iPhone missed more than it is with T-Mobile.

As usual, the real beneficiary of iPhone sales is not the carrier, but Apple. The irony in the T-Mobile/iPhone relationship -- as shown by the latest figures from market research company Kantar Worldpanel -- is that while the iPhone on the T-Mobile network has helped boost the iPhone's share of smartphone sales, T-Mobile has actually seen its smartphone share of sales fall.

For the three-month period ending in May, in the U.S. market, Apple saw its share of smartphones sales rise from 38.4% to 41.9% over the same period last year. T-Mobile's smartphone sales share fell from 13.5% to 10.1%.

Of course, T-Mobile didn't get the iPhone until halfway through the period looked at, and we won't get a more accurate picture until we can look at their sales figures for a full three months.

But even with a shortened selling period, the iPhone 5 was the top-selling T-Mobile smartphone. Those iPhone sales were mostly to first-time smartphone buyers, 53% coming from feature phone owners. For the iPhone market as a whole, 45% of iOS buyers came from a feature phone.

T-Mobile realizes that having the 4G LTE-capable iPhone 5 alone isn't going to attract customers away from AT&T and Verizon, especially with those carriers' considerable edge in number of 4G LTE markets. T-Mobile has only just started powering up its 4G wireless networks in a handful of cities. AT&T is already in 300 or so markets, and Verizon is serving about 500 markets .

Instead, T-Mobile is attempting to differentiate itself by posing as the "uncarrier." Where the Nos. 1, 2, and 3 carriers push for their customers to sign two-year contracts in return for a subsidized phone, T-Mobile touts its no-contract plans.

An iPhone 5 on AT&T and Verizon costs a two-year plans subscriber a subsidized $200. On Sprint it costs $100. On T-Mobile, a subscriber would pay the full retail price of $650 ... or have the option of putting $146 down and financing the rest at $21 a month for 24 months.

But wait. Isn't that second option the same as a two-year contract on the other carriers? Even the "uncarrier" has a carrier-like pricing plan.

Also, will the iPhone continue to keep its allure in the U.S.? In Western Europe, it is continuing to lose out to Android phones. According to market researcher IDC, Apple's market share in the first quarter of the year fell from 25% to 20% over the same period last year. Google's Android OS-driven smartphones took a 69% market share, up from 55% in Q1 2012.

And in India, Apple is really taking it on the chin. Android phones have a 90% share there, according to IDC. Lower cost smartphones are the big sellers in India, a segment that Apple hasn't yet addressed.

Bottom line: iPhones still have a large, if not a majority, share of the U.S. smartphone market. But it is obvious, as shown around the world, that Apple doesn't have the same grip. It is also clear that if the iPhone is not the magic bullet for T-Mobile, the company can't rely on its "uncarrier" disguise for more market traction.

As far as Apple not yet taking advantage of the tremendous potential for sales in emerging markets, such as India, which has the need for lower priced products, Apple has shown a readiness to not only crank out revolutionary products, but also to creatively destroy them with something better ... and often cheaper. Read about the future of Apple in the free report "Apple Will Destroy Its Greatest Product." Can Apple really disrupt its own iPhones and iPads? Find out by clicking here.

24 Commercial Banking Stocks to Buy Now

Popular Posts: 7 “Triple A” Stocks to Buy5 Pharmaceutical Stocks to Buy Now16 Oil and Gas Stocks to Sell Now Recent Posts: 24 Commercial Banking Stocks to Buy Now 3 Auto Parts Stocks to Sell Now 10 Best “Strong Buy” Stocks — TYL DXPE PCYC and more View All Posts

The grades of 24 Commercial Banking stocks are better this week, according to the Portfolio Grader database. Every one of these stocks has an “A” (“strong buy”) or “B” overall (“buy”) rating.

This week, Yadkin Financial Corporation (NASDAQ:) is showing good progress as the company’s rating jumps from a B (“buy”) last week to an A (“strong buy”). Yadkin Financial operates as a bank holding company for Yadkin Bank that provides consumer and commercial banking services in North Carolina and South Carolina. In Portfolio Grader’s specific subcategories of Earnings Momentum and Earnings Revisions, YDKN also gets A’s. .

Pinnacle Financial Partners, Inc. (NASDAQ:) is bettering its rating of C (“hold”) from last week to a B (“buy”) this week. Pinnacle Financial Partners is a holding company for Pinnacle National Bank. Shares of PNFP have increased 5.1% over the past month, better than the 1.3% decrease the Nasdaq has seen over the same period of time. .

Taylor Capital Group, Inc. (NASDAQ:) improves from a B to an A rating this week. Taylor Capital Group is a bank holding company for Cole Taylor Bank. .

This week, BSB Bancorp, Inc. (NASDAQ:) pushes up from a C to a B rating. BSB Bancorp operates as a bank holding company. .

This is a strong week for First Business Financial Services, Inc. (NASDAQ:). The company’s rating climbs to A from the previous week’s B. First Business Financial Services is a bank holding company involved in the commercial banking business through offices located in Wisconsin. .

BNC Bancorp (NASDAQ:) gets a higher grade this week, advancing from a C last week to a B. BNC Bancorp offers products and services to individuals and small- to medium-sized local businesses. .

This is a strong week for Wells Fargo & Company (NYSE:). The company’s rating climbs to B from the previous week’s C. Wells Fargo provides financial services in mainly wholesale banking, mortgage banking, consumer finance, equipment leasing, agricultural finance and commercial finance. .

This week, PacWest Bancorp’s (NASDAQ:) ratings are up from a C last week to a B. PacWest Bancorp is the holding company for Pacific Western Bank. .

U.S. Bancorp (NYSE:) boosts its rating from a C to a B this week. U.S. Bancorp provides banking and financial services. .

The rating of Huntington Bancshares Incorporated (NASDAQ:) moves up this week, rising from a C to a B. Huntington Bancshares is a multi-state bank holding company. .

Independent Bank Corp. (NASDAQ:) improves from a C to a B rating this week. Independent Bank is the holding company for Rockland Trust. .

First Financial Bankshares, Inc. (NASDAQ:) is seeing ratings go up from a C last week to a B this week. First Financial Bankshares is a multi-bank holding company. .

Pacific Continental Corporation (NASDAQ:) shows solid improvement this week. The company’s rating rises from a B to an A. Pacific Continental Bank is a bank holding company that provides commercial banking, financing, and mortgage lending in parts of Washington state and Oregon. .

First Community Bancshares, Inc. (NASDAQ:) earns a B this week, jumping up from last week’s grade of C. First Community Bancshares is the holding company for First Community Bank. .

Bryn Mawr Bank Corporation’s (NASDAQ:) ratings are looking better this week, moving up to a B from last week’s C. Bryn Mawr Bank offers a full range of personal and business banking services. .

This week, Banco de Chile Sponsored ADR (NYSE:) pushes up from a C to a B rating. NonactiveBanco de Chile provides a wide customer base of individuals and corporations with general banking services. At present, the stock has a dividend yield of 3.3%. .

This week, BOK Financial Corporation’s (NASDAQ:) ratings are up from a C last week to a B. BOK Financial provides a range of financial services to commercial and industrial customers, other financial institutions, and consumers in the United States. .

The rating of Glacier Bancorp, Inc. (NASDAQ:) moves up this week, rising from a C to a B. Glacier Bancorp is a regional multi-bank holding company providing commercial financial services to individuals and corporations. .

Washington Trust Bancorp, Inc.’s (NASDAQ:) ratings are looking better this week, moving up to a B from last week’s C. Washington Trust offers a range of financial services to individuals and businesses, including wealth management. .

First Connecticut Bancorp, Inc. (NASDAQ:) is seeing ratings go up from a C last week to a B this week. First Connecticut Bancorp operates as the holding company for Farmington Bank that provides consumer and commercial banking services to businesses, individuals, and governments in central Connecticut. .

First Financial Holdings, Inc. (NASDAQ:) boosts its rating from a B to an A this week. South Carolina Bank and Trust is a bank holding company that provides retail and commercial banking, mortgage lending, consumer finance loans, and trust and investment services. .

Canadian Imperial Bank of Commerce (NYSE:) earns a B this week, jumping up from last week’s grade of C. Canadian Imperial Bank of Commerce is a global financial institution that serves clients through CIBC retail markets and wholesale banking. The current dividend yield is 3.6%. .

This week, The Bank of Nova Scotia (NYSE:) pushes up from a C to a B rating. Bank of Nova Scotia offers various personal, commercial, corporate, and investment banking services in Canada and internationally. The stock’s dividend yield is 2.4%. .

This is a strong week for MutualFirst Financial, Inc. (NASDAQ:). The company’s rating climbs to A from the previous week’s B. MutualFirst Financial is the holding company for Mutual Federal Savings Bank. .

Louis Navellier’s proprietary Portfolio Grader stock ranking system assesses roughly 5,000 companies every week based on a number of fundamental and quantitative measures. Stocks are given a letter grade based on their results — with A being “strong buy,” and F being “strong sell.” Explore the tool here.

Sorry, Noodles, but You're No Chipotle

Noodles & Co. (NASDAQ: NDLS  ) more than doubled after going public on Friday, and the shares rose another 5% on Monday.

As a fast-growing casual dining concept, investors are naturally going to compare the new carb-laden kid on the block to Chipotle Mexican Grill (NYSE: CMG  ) , but the comparisons may be premature.

Yes, both companies specialize in the fast-casual niche that's growing at the expense of traditional casual dining. Customers crave quality eats that are prepared quickly. Prepaying at the counter comes in handy, since there isn't a need to flag down a server for a check at the end of a meal.

There are other similarities between Chipotle and Noodles, and it's not just that both stocks doubled the day they began trading.

Chipotle's claim to cult status popularity is that its comps remained positive even during the darkest recessionary stretches. Noodles is there, too, having posted positive same-store sales in 28 of the past 29 quarters.

However, let's talk about valuations.

Chipotle was a lot larger than Noodles when McDonald's chose to spin off the fast-growing burrito roller.

Chipotle had 489 restaurants by the end of 2005. Revenue had climbed 33% to $627.7 million that year, and comps had posted eight consecutive years of double-digit comps.

Noodles is doing well, but not that well.

Revenue climbed 17% to $300.4 million last year, and Noodles closed out the year with 276 locations. Systemwide comps have grown 3.7%, 4.8%, and 5.4% in its three most recent fiscal years.

In short, Noodles is half the size -- and growing at half the rate -- of Chipotle at the time of its IPO. The average Chipotle restaurant was making more than the average Noodles unit is making now.

Chipotle's IPO pop boosted its market cap to $1.4 billion. Noodles -- with the inevitable over-allotment of shares pushing its total share count to 29.4 million -- is now worth more than $1.1 billion.

To be fair, Chipotle went public at a time when casual dining was still unproven. Even if it takes another three to four years for Noodles to get to where Chipotle was at the time of its IPO, it will probably command a market cap greater than $1.4 billion at the time if the fundamentals continue to hold up.

Noodles has a surprisingly unique concept, specializing in all types of noodles -- from Asian noodle bowls to Italian pasta dishes to Americana mac and cheese staples -- that help limit the veto vote that may shoot down family or group outings to fast-casual establishments with narrower menus. However, with the easy money already made and the concept still lacking the cult status distinction that Chipotle has achieved, Noodles is clearly no Chipotle.

Buy retail concepts while they're still early in their growth cycles
The retail space is in the midst of the biggest paradigm shift since mail order took off at the turn of the last century. Only those most forward-looking and capable companies will survive, and they'll handsomely reward those investors who understand the landscape. You can read about the 3 Companies Ready to Rule Retail in The Motley Fool's special report. Uncovering these top picks is free today -- just click here to read more.

Dow May Rise Following Inflation Report

LONDON -- Stock index futures as of 6:20 a.m. EDT indicate that both the Dow Jones Industrial Average (DJINDICES: ^DJI  ) and the S&P 500 (SNPINDEX: ^GSPC  ) may open 0.14% higher this morning.

European markets moved cautiously higher this morning. In the U.K., consumer price inflation rose to 2.7% in May from 2.4% in April, meaning that inflation remains above the Bank of England's 2% target. In Germany, cable TV operator Kabel Deutschland hit a record €85 per share following news that Liberty Global had submitted a bid for the firm, which recently received an informal offer from Vodafone. As of 7:15 a.m. EDT, the FTSE 100 is up 0.76%, the German DAX is flat, and Spain's IBEX 35 is up 0.64% despite news that bad debt levels in Spanish banks rose to 10.9% in April from 10.5% in March.

In the U.S., investors are likely to be cautious ahead of tomorrow's Fed meeting. At 8:30 a.m. EDT, May's Consumer Price Index report will be published. Consensus forecasts suggest that inflation rose by 0.2% in May after falling 0.4% in April. Low inflation is seen to be supportive of further Fed easing, so markets may react positively if inflation is at or below expectations. Also due at 8:30 a.m. EDT are May's housing-starts and building-permits reports. Expectations call for a rise in housing starts to 953,000 last month from 853,000 in April. The number of new building permits issued in May is expected to be 973,000, down 2.7% from April.

In corporate news, few companies are scheduled to report earnings today. FactSet Research Systems is expected to report third-quarter earnings of $1.15 per share before this morning's opening bell. After the close tonight, Adobe Systems is expected to report second-quarter earnings of $0.34 per share, while La-Z-Boy is expected to report fourth-quarter earnings of $0.27 per share. Other stocks that could be actively traded this morning include Sony, which is 2.8% higher in premarket trading following reports that Daniel Loeb's hedge fund, Third Point, has increased its stake in the firm. Netflix may also be actively traded after closing up 7% yesterday following news of its new deal with DreamWorks Animation.

Finally, let's not forget that the Dow's daily movements can add up to serious long-term gains. Indeed, Warren Buffett recently wrote, "The Dow advanced from 66 to 11,497 in the 20th Century, a staggering 17,320% increase that materialized despite four costly wars, a Great Depression and many recessions." If you, like Buffett, are convinced of the long-term power of the Dow, you should read "5 Stocks To Retire On." Your long-term wealth could be transformed, even in this uncertain economy. Simply click here now to download this free, no-obligation report.

Tesla's Spilled Secret May Be Its Smartest Move Yet

It's no news that Tesla Motors (NASDAQ: TSLA  ) has major expansion plans. But with its car cards on the table, investors are wondering why CEO Elon Musk spilled the beans on new developments before maximizing sales for current car models. This physics major knows there are reactions to every action, and his move may be more calculating than we think. Here's what you need to know.

Spoiled surprise
Shares of Tesla are up 180% this year, but the automaker isn't worried about making market moving announcements. After Q1 deliveries of its Model S clocked in at 4,750 units, 5.5% above expectations, Elon Musk is already moving on to next-generation models.

The CEO recently revealed plans for a new sedan and compact SUV with $35,000 price tags and 200-mile ranges. That cuts consumer costs in half, scoring major points for Musk's mass-market musings. As fellow Fool John Rosevear recently noted, Tesla's vision is to become "the electric version of a car company like BMW."

But bears are worried that Musk may be mouthing off a bit too soon. If car shoppers are tempted by Tesla's future offerings, this newest announcement might put off their purchases until newer, cheaper models hit the lot. Is this possible? Absolutely? Is it what Musk wants? Absolutely.

Out with the old
Tesla built its business on the back of its Tesla Roadster, Model X, and Model S, but less efficient technology and a prohibitive price put these models out of want and out of reach for most consumers. Musk knows that these most recent announcements might minimize sales for current models, but that means maximized sales for its upcoming additions. With mass appeal comes increased brand power, economies of scale, and a market presence on par with other luxury competitors.

Scale is especially important as Tesla hopes to make the most of luxurious margins. To do that, the automaker needs to fill out the capacity of its room-to-grow factory. Tesla's HQ is the old haunt of a Toyota Motors (NYSE: TM  ) and General Motors (NYSE: GM  ) joint venture, rated at 500,000 vehicles. The factory dates back to the early 1980s, and fell into Tesla's open hands after Toyota tossed it off for $42 million in May 2010.

Tesla's good fortune mirrors that of Tata Motors (NYSE: TTM  ) in 2008, when the Indian automaker bought Ford's (NYSE: F  ) floundering Jaguar Land Rover company for a paltry $2.3 billion. And just like Tata, Tesla is hoping to maximize sales in the luxury vehicle department. In April alone, Jaguar sales clocked in at 4,710 units while Land Rover roared ahead with 23,790 units sold. Sales are up 12.2% year over year, and the company enjoyed more than 30% growth in the UK and Asia Pacific.

Is Tesla worth it?
With Tesla's recent price spike, any attempts at valuation are virtually impossible. The company is in growth mode, and Musk's recent announcements prove once again that this company isn't playing by the rules. I've seen my own shares soar 175%, and I'm excited to buckle in for Tesla's mass market ride.

Although Tesla's plan to disrupt the global auto business has yielded spectacular results, there's more you need to know. Giant competitors are already moving to disrupt Tesla and investors can't decide whether the company can fend them off. The Motley Fool answers this question and more in our most in-depth Tesla research available. Get instant access by clicking here now.

Here's Why Investing in Seagate Is a Bad Idea

Data storage player Seagate Technology (NASDAQ: STX  ) has had a rough go this year. The company is losing market share to rival Western Digital (NASDAQ: WDC  ) , and its financial performance is also on the decline. Seagate's revenue and profit were down in the second quarter on a year-over-year basis, so it's not astonishing to see that the company's shares have taken a beating in 2014.

Seagate's prospects don't look appealing right now as it's seeing weak sales of higher-margin disk drives to enterprise customers and is incurring higher operating expenses. Further, the weakness in the PC market is another concern for the company's hard-drive business.

Exploring other options
Seagate is looking to explore other areas to make up for a weak PC market. The company is focusing on products for mobile devices and servers. In addition, Seagate is focusing on strategic acquisitions. Hence, it acquired Xyratex, which is a leading provider of storage data technology. With this acquisition, Seagate has enhanced its vertically integrated supply and manufacturing chain for disk drives. Also, the acquisition enables Seagate to expand its portfolio through Xyratex's industry-leading enterprise data storage systems and high-performance computing businesses.

Seagate is also focusing on restructuring its product portfolio in order to align its offerings with the emerging trends in mobility, cloud, and open-source computing. The company has launched its Kinetic platform, and is expanding its portfolio of high capacity drives with a six-disk, six-terabyte drive. Looking ahead, because Seagate expects its addressable market to grow, these moves will help it in strengthening its position.

It looks like Seagate's moves are already becoming effective. The company is seeing good response in mobile as its five-millimeter drives are being sold by multiple tablet manufacturers. In addition, Seagate is also focusing on product innovation. The company expects its latest shingled magnetic recording, or SMR, technology to break density barriers in hard drives and add 25% more capacity to traditional drives. The introduction of higher-capacity hard drives can help Seagate win over more customers in the server and enterprise market due to the low cost of storage.

Seagate is also looking to deepen customer engagement going forward by providing them with more services. Also, due to the increasing demand for large-capacity drives, Seagate is working on adding more value to its product portfolio and winning more customers in enterprise information technology functions.

Difficult to get ahead of Western Digital
However, Seagate's rival Western Digital is already on the forefront in the enterprise-storage department. Western Digital has bolstered its enterprise segment through acquisitions such as Virident and sTec. The company spent close to $1 billion on these acquisitions last year, and they have started yielding solid results.

Western Digital's revenue was up almost 4% in the last quarter, and its earnings increased 29%. More importantly, Western Digital's enterprise revenue outpaced the industry's average in the last quarter, according to management. The company's acquisitions have given it a stronger base than Seagate to tap this market. For example, the sTec acquisition brought over 100 SSD-related patents into Western Digital's fold. On the other hand, Seagate struggled due to lower sales to enterprise customers.

Bottom line
Seagate has been struggling, while rival HDD maker Western Digital has been gaining market share. Both companies used to command an identical share of the market, but Western Digital has inched ahead with a 45% share as compared to Seagate's 40%. Moreover, Western Digital has a stronger cash position when compared to Seagate, which should allow it more freedom to make more acquisitions and ramp up product development.

Seagate may continue losing share in the storage market. This is the reason why investors should stay away from it.

Bigger than storage, here's the biggest thing to come out of Silicon Valley in years
If you thought the iPod, the iPhone, and the iPad were amazing, just wait until you see this. One hundred of Apple's top engineers are busy building one in a secret lab. And an ABI Research report predicts 485 million of them could be sold over the next decade. But you can invest in it right now... for just a fraction of the price of AAPL stock. Click here to get the full story in this eye-opening new report.

BofA Posts Loss; Wealth Group Profit Slows: Q1 Earnings

Bank of America (BAC) said Wednesday that it lost $276 million in the first quarter of 2014, compared with net income of $1.5 billion a year ago. Revenue (net of interest expense) declined 3% year over year to $22.8 billion.

The company notes that these results include $6.0 billion in litigation expense related to a settlement with the Federal Housing Finance Agency (FHFA) and additional reserves tied to legacy mortgage-related matters.

"The cost of resolving more of our mortgage issues hurt our earnings this quarter,” said CEO Brian Moynihan, in a press release. “But the earnings power of our business and customer strategy generated solid results, and we continued to return excess capital to our shareholders."

Wealth Results

BofA’s Global Wealth and Investment Management unit, which includes Merrill Lynch and U.S. Trust advisors, had revenues of $4.55 billion, up about 3% from the year-ago quarter and a 1.6% improvement from the fourth quarter.

Net income was $729 million, up 1% from a year earlier and down 6% from the earlier quarter. The unit’s return on average allocated capital in the period was 24.74, down from 29.41 a year ago and 30.99 in Q4’13. Its pretax profit margin was 25.6%, down from the prior quarter’s 26.6%.

BofA says asset management fees rose 18% year over year to $1.9 billion. Client balances grew about 1% from the prior quarter and 7% from last year — by about $29 billion — to $2.4 trillion, reflecting about $12 billion in flows and $16 billion in market improvements.

Long-term asset flows for Q1 totaled $17.4 billion versus $9.4 billion a year ago and $20.4 billion in Q4. The level of loan balances, including margin loans, grew 10% year over year to $120 billion, excluding migration.

Mother Merrill

The total level of client assets in Merrill Lynch accounts stood at $1.95 trillion versus $1.92 trillion in the prior quarter and $1.81 trillion a year ago, and the group’s revenue for Q1 was $3.76 billion — compared with $3.70 billion in Q4 ’13 and $3.68 billion in Q1 ’13.

The company says asset management fees totaled about $1.5 billion in the period, up 21% from the year-ago quarter.

The number of financial advisors, though, dropped by 47 to 13,725 for the quarter, primarily driven by continued attrition of  underperforming advisor trainees in its Practice Management Development program.

Advisor productivity, or yearly fees and commissions, were $1.3 million per experienced advisor; total advisor productivity is roughly $1.06 million as of Q1 ’14, up from $1.04 in Q4 ’13 and $971,000 in Q1 ’13.

“As of March, 45% of our advisors had 50% or more of their client assets under a fee-based relationship,” the bank said in a statement.

The company notes that one-third of Merrill revenue comes from brokerage operations, one-third from fee-based business and one-third from net interest income from deposits and credits.

The Merrill Lynch One platform now includes some 98,000 accounts with $32 billion in assets. Some 5,000-plus advisors in five areas of the country have access to it.

“Feedback on the platform is positive with trends in the adoption of investment discipline through the leverage of firm traded models and an increase in [net new assets] in transitioning relationships,” BofA said in a statement. It adds that it is “on track to complete deployment of the new platform by Q3’14 across Merrill Lynch Wealth Management.”

BofA Posts Loss as Litigation Charges Weigh

Mark Lennihan/AP Bank of America (BAC) posted a first-quarter loss as the No. 2 U.S. bank recorded $6 billion in litigation expenses related to a settlement with the Federal Housing Finance Agency and other mortgage-related matters. The bank reported a net loss attributable to shareholders of$514 million, or 5 cents a share, in the three months to March 31 compared with a profit of $1.11 billion, or 10 cents a share, a year earlier. The previous quarter's results were hit by $1.6 billion in charges related to disputes with bond insurers. Analysts on average had expected earnings of 5 cents a share, according to Thomson Reuters I/B/E/S. BofA shares, which have risen 5.3 percent so far this year, were down nearly 2 percent at $16.10 in premarket trading. Revenue fell 3.8 percent to $22.66 billion, excluding accounting adjustments, but beat the average analyst estimate of $22.33 billion. Bank of America is coming off its best year since before the financial crisis, with 2013 net income of $11.4 billion the highest since 2007. But large legal bills continue to overshadow the performance of many of its main businesses. BofA agreed in March to pay $9.5 billion to settle claims that it sold Fannie Mae and Freddie Mac faulty mortgage bonds, helping it to end one of the largest legal headaches it still faced from the financial crisis. BofA made progress resolving many of its legal issues in the first quarter, although some proved to be costly. The bank said on March 26 that first-quarter pre-tax profit would be reduced by about $3.7 billion as a result of a settlement with the Federal Housing Finance Agency, the overseer of government-backed mortgage giants Fannie Mae and Freddie Mac. "The cost of resolving more of our mortgage issues hurt our earnings this quarter," Chief Executive Officer Brian Moynihan said in a statement. Litigation expenses rose to $6 billion from $2.2 billion in the first quarter of 2013. Noninterest expenses increased to $22.2 billion from $19.5 billion. Costs in the bank's Legacy Assets and Servicing division, excluding litigation expenses, fell to $1.6 billion from $2.6 billion a year earlier and $1.8 billion in the third quarter. The Charlotte, North Carolina-based bank has said that costs in the unit, which handles delinquent mortgage loans, would fall below $1.1 billion a quarter by the end of 2014 and will be about $500 million a quarter by the end of 2015. Bank of America released $379 million from its allowances for bad loans, compared with $804 million in the same period a year earlier and $1.2 billion in the fourth quarter.

Janney Ups Visa, MasterCard To Buy After Selloff

It's been a good week for Visa (V) and MasterCard (MA)—two days in and they've enjoyed two rounds of upgrades.

Today, the bullishness comes from Janney Montgomery Scott's Thomas McCrohan and Leonard DeProspo, who boosted their ratings on both names to Buy.

For Visa, the upgrade came with a target price increase from $210 to $240 and they write that the recent selloff in the name provides an attractive entry point "to own one of the better business models in payments." They count the company's powerful network, worldwide brand, and its role in influencing payment standards among its core strengths, and note that the increase of mobile payments has also served to increase the number of places where Visa is accepted.

They write that strong margin expansion in the past year and a half means that mid-to-high teens earnings per share growth is possible even if margins contract this quarter and next, as the company's guidance suggests.

More thoughts below:

Changes to FANF fees beginning April 1, 2015. Last week, Visa modified its FANF pricing (Fixed Acquirer Network Fee) to include a 15 bps volume-based charge for sub-merchants of payment aggregators. Previously, payment aggregators only paid one lump sum payment of $40,000 per month, which created a cost advantage for aggregators versus traditional acquirers and ISOs that were required to pay a separate FANF fee per merchant location. The new FANF pricing is 15 bps of monthly volume, which translates into $30 million of incremental high-margin fee income for Visa based on $20 billion of aggregator volume.

Fiscal 2014 EPS guidance achievable. First quarter margins of 65.8% were a record, and were 230 bps above the previous record (FQ1-2012). FY 2014 EPS guidance calls for mid-to-high teen growth but assumes higher operating expense in 2Q and 3Q and ongoing F/X headwinds from current turmoil in emerging markets. Mid-to-high teen EPS growth appears reasonable given the 3-year average growth of 25.5%. Our FY 2014 margin estimate is 63%, resulting in 16% EPS growth.

Litigation risks moderating. The recent appeal court hearing greatly reduces the risk of further changes to debit card network routing, and Walmart's (WMT) recent appeal to the anti-trust settlement was moved from Arkansas to Brooklyn. Based on prior rulings, the courts in Brooklyn will likely be more sympathetic to Visa than to Walmart.

Lack of any credible disruptive threats. Disruption remains a consistent theme, but the majority of advances we have witnessed so far are occurring on the edges of the network as opposed to the payment network itself.

As for MasterCard, McCrohan and DeProspo have an $81 price target on the stock, up $3. Again, their reasoning is the same, as they see the pullback in the stock as a good entry point, and believe it shares the same core strengths as Visa.

More details:

Recent deal with Sam's Club continues co-brand momentum. MasterCard recently won the Sam's Club co-branded credit card portfolio in a competitive take-away from Discover (DFS). When we met with management of MasterCard in December 2013, the CEO indicated that MA was winning 60% of the co-brand deals out for bid (e.g. Bass Pro Shops, Hawaiian Airlines, Virgin America). Sam's Club is one of the three leading membership-based warehouse clubs in the United States. Recent regulatory filings disclosed that Sam's Club accounts for 12% of total Wal-Mart revenue, which equates to $57 billion in total revenue.

Co-brand momentum gives us confidence fiscal 2014 revenue guidance achievable. The company provides 3-year financial targets as opposed to annual guidance, but for 2014, management has indicated they expect net revenue growth at the low-end of its 3-year target range of 11%-14%. Our 2014 revenue growth estimate of 12.9% is above street expectations of 11.5%.

Litigation risks moderating. The recent appeal court hearing greatly reduces the risk of further changes to debit card network routing, and Walmart's appeal to the recent anti-trust settlement was moved from Arkansas to Brooklyn. Based on prior rulings, the courts in Brooklyn will likely be more sympathetic to Visa than Walmart.

Lack of any credible disruptive threats. Disruption remains a consistent theme, but the majority of advances we have witnessed so far are occurring on the edges of the network as opposed to the payment network itself.

 

5 Ways to Maximize 401(k) Tax Benefits

It is tax time again, and many Americans are struggling to wade through the piles of W-2s and 1099s to beat the April deadline. Charles Schwab Retirement Plan Services believes now is a good time for employees to know what they can do to maximize the tax benefits they receive from participating in their employer-sponsored 401(k) plan. It recommends these top five tips (presented here from 5 to 1) for better utilizing workplace retirement plans:

5. Avoid 401(k) loans, even when money is tight. 

Borrowing from your 401(k) should be an absolute last resort. Loans from a 401(k) plan must be repaid with after-tax dollars, negating many of the tax benefits of a 401(k). And, if you leave your job and are unable to repay the loan in-full, the outstanding balance is treated like a withdrawal, triggering a tax bill and potentially a 10 percent penalty on top of the tax.

4. Don’t burden yourself with withdrawals.

Any withdrawal from a 401(k) plan can carry significant tax consequences. If you withdraw money from your employer-sponsored retirement plan before the age of 59½, you'll likely face a 10 percent federal penalty. What's more, the government will take 20 percent of your withdrawal as an advance on your tax bill. Plus, some plans may bar employees who have taken a withdrawal from contributing for the next six months, causing another blow to your savings that can impact your long-term financial goals.

3. Get to know the Roth. 

A Roth 401(k) can offer a different kind of strategic tax planning opportunity. In a traditional 401(k) plan, contributions are made on a pre-tax basis, and taxes are paid when you take distributions from the plan. In a Roth 401(k), contributions are made on an after-tax basis, and distributions of any investment earnings are tax-free after you meet certain requirements.

2. Get credit where credit’s due.

Depending on your income and filing status, contributions to a qualified 401(k) plan may further lower your tax bill through the Saver's Credit (formerly known as the Retirement Savings Contributions Credit). The credit was established in 2002 and directly reduces your taxable income by a percentage of the amount you put into your 401(k) plan. According to the IRS, those who meet eligibility requirements can take a credit of up to $2,000 if filing jointly.

1. Bump up or max out your contributions.

Traditional 401(k) plans are funded with pre-tax dollars, which lowers a person’s taxable income. Making a significant contribution could put you into a lower tax bracket entirely, allowing you to keep even more of your paycheck. Studies have shown that a mere 10 percent of participants max out their contributions, so there is definitely room for most Americans to get more aggressive with their savings rate.

Also read on ThinkAdvisor:

Pentagon Awards Contracts for Electronic Warfare, GPS Landing Systems

The Department of Defense awarded a bit more than $235 million worth of contracts Wednesday, with three big publicly traded companies accounting for more than a quarter of the total contract value awarded.

Lockheed Martin (NYSE: LMT  ) won a $39 million contract exercising a firm-fixed-price option to produce Block 2 Surface Electronic Warfare Improvement Program (SEWIP) systems at low-rate initial production rates. The SEWIP program aims to upgrade the U.S. Navy's current AN/SLQ-32(V) Electronic Warfare System to improve the performance of antennae and receivers. Work on this contract should be complete by September 2014. Raytheon (NYSE: RTN  ) was awarded a $14.6 million modification to a previously awarded contract to do phase II design work on the Joint Precision Approach and Landing System (JPALS), assessing, documenting, and implementing design modifications to make the JPALS Increment 1A Ship system easier to maintain. JPALS is a project to make aircraft landing systems that run on GPS more robust, and harder for opposing forces to jam. This contract runs through December 2013. Honeywell (NYSE: HON  ) won a $9 million contract to supply 121 advanced multipurpose displays for installation aboard Navy F/A-18E/F fighter jets and EA-18G electronic warfare aircraft. Delivery and installation should be complete by January 2015.

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