Canadian Finance Blog

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The Five Big Benefits of Valuation-Informed Indexing Posted: 31 Jan 2011 02:00 AM PST I've been arguing for nine years now that the Buy-and-Hold investing strategy needs to be updated. Buy-and-Hold was developed to reflect lessons learned from the academic research of the 1960s and 1970s. A key premise of this model, that investors do not need to change their stock allocations in response to big price swings, is rooted in the research of University of Chicago Economics Professor Eugene Fama. But Fama's research was discredited 30 years ago. Yale Economics Professor Robert Shiller showed in 1981 that valuations affect long-term returns. If valuations affect long-term returns (there is now a mountain of follow-up research backing up Shiller's 1981 finding), the value proposition of stocks is a variable and not a constant thing. Thus, investors should not be staying at the same stock allocation at all times but changing their stock allocations in response to big price swings. Those who fail to do so are permitting their risk profiles to swing wildly. It is only by changing our stock allocations in response to big price shifts that we can keep our risk levels roughly constant. Valuation-Informed Indexing I call this new approach Valuation-Informed Indexing. Wade Pfau, Associate Professor of Economics at the National Graduate Institute for Policy Studies in Tokyo, Japan, recently posted at his blog preliminary research showing that it works well. Pfau found that: "Valuation-Informed Indexing provides more wealth for 102 of the 110 rolling 30-year periods" in the historical record. Combined with the message delivered by Brett Arends in a recent Wall Street Journal column that the only reason why experts have been so slow to pick up on the implications of Shiller's research is that "for years the investment industry has tried to scare clients into staying fully invested in the stock market at all times no matter how high stocks go" and that "they are leaving out more than half the story" and that Buy-and-Hold has been revealed as "hooey," I believe that the time has come for the launching of a national debate on the true realities of long-term stock investing. Set forth below are five reasons why I view Valuation-Informed Indexing as the investing strategy of the future. 1) Higher Returns Having less money in stocks when they are priced to crash (a regression analysis of the historical stock-return data showed that stocks were in 2000 priced to provide a likely annualized 10-year return of a negative 1 percent real) leaves you with more money to invest in stocks when prices are moderate or low. You lose less at times of high prices (the only bad time to own stocks) and you gain more at times of low prices (both because you have more money to invest after suffering smaller losses and because Valuation-Informed Indexers go with higher stock allocations at times when stocks are offering mouth-wateringly high long-term returns [in 1982, stocks were priced to provide a likely annualized 10-year return of 15 percent real!)]; 2) Less Risk The most important implication of Shiller's research is that the inherent riskiness of stocks is greatly overstated. To say that valuation levels affect long-term returns is to say that valuation levels predict long-term returns (not precisely, but to a significant extent). Risk is uncertainty. To the extent that long-term returns can be predicted, stocks are not risky. A statistical analysis shows that 78 percent of the 20-year return of an index fund is determined by the valuation level that applies at the beginning of the 20-year period. Only 22 percent is due to factors that cannot be known by the investor at the time the investment is made. 3) Better Emotional Balance Valuation-Informed Indexers do not become elated by price jumps or depressed by price drops. Why? Because every upward price movement has its downside (it lowers the most likely long-term return from that point forward) and every downward price movement has its upside (it increases the most likely long-term return from that point forward). The stock portfolio of a Valuation-Informed Indexer is adjusted for the effect of overvaluation or undervaluation and thus increases at a steady pace over time rather than jumping wildly up and down in tune with the manic-depressive mood swings of Mr. Market. 4) True Long-Term Focus Buy-and-Hold purports to be a strategy for long-term investors. The reality, however, is that most Buy-and-Holders pay almost as much attention to the short-term ups and downs as stock investors have since the beginning of time. The reason is that Buy-and-Hold posits that price changes are the result of economic developments. Investors who believe that short-term economic developments are affecting their retirement hopes can hardly expect to honour vows not to pay attention to what is going on in the economy. Shiller's research suggests that the primary driver of short-term price changes is investor emotion. Thus, short-term economic developments are of little consequence to the Valuation-Informed Indexer. By encouraging a thought process in which the short term truly doesn't matter, the new strategy helps investors tune out the short-term noise not just in theory but in reality. 5) Enhanced Money Management Abilities Stocks were priced at three times fair value in January 2000. That means that an investor with a stock portfolio nominally worth $300,000 possessed lasting wealth of only $100,000. Millions spent more on houses, cars and vacations than they would have if they had known their true financial status. Valuation-Informed Indexers discount the nominal value of their portfolios for the extent of overvaluation present in the market and thus are better able to manage their non-investing financial affairs. Author Bio: Rob Bennett created the first retirement calculator that contains an adjustment for the valuation level that applies on the day the retirement begins. His full bio is here. Related Posts: Investment Risks What Is A Price To Earnings Ratio (P/E Ratio)? The Psychological Effects Of Risk The Five Big Benefits of Valuation-Informed Indexing originally appeared on Canadian Finance Blog on January 31, 2011.

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DailyMarkets.com - Forex – EUR/USD Up During The Asian Session

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• Forex – EUR/USD Up During The Asian Session
• Forex – EUR/JPY Up During The Asian Session
• Stock Market Summary For Monday, January 31, 2011
• Forex – GBP/JPY Up During The Asian Session
• Central Bank Of Colombia Holds Rate At 3%
• February In The History Books
• This Week In Wall Street History
• Earnings Preview: Lincoln National
• IRF Surpasses Estimates
• Rudolph Beats Estimates
• Forex – NZD/USD Up During The Asian Session
• USD/CHF Developing Bullish Divergences; 0.9480 Is Key Resistance
• The Day Ahead: Earnings, RBA Rate Decision, ISM Manufacturing
• ETF News Update: Oil Goes Parabolic Over Egypt (USO)
• ResMed EPS In Tune With Zacks Ests
• GBP/AUD Is In Wave B; Bearish In The Short-term; Bullish In The Intermediate
• Earnings Preview: NASDAQ
• Earnings Preview: NASDAQ
• Ratings Action On CIGNA
• Chesapeake, CNOOC Sign 2nd Deal
• ABB Completes Baldor Acquisition
• Hot Stocks To Watch On Tuesday, 01 February
• Tenet Signs With Keystone MHP
• Cohu Surpasses Estimates
• Yum! Repurchases Shares
• Suntech Wins Siemens Contract
• The Rapid Recovery (in Profits)
• Closing Bell Market Monitor: AMD, MEE, CHK
• Forex – EUR/USD Up At The End Of U.S. Session
• Forex – USD/JPY Down Toward The End Of U.S. Session
• How To Use ETFs To Invest In North Africa’s Unrest (EGPT, EFZ, USO)
• Dollar Financial Outshines YoY
• Merger Beckons Massey And Alpha
• Limited Brands Enhances Returns
• Forex – EUR/USD Up Toward The End Of U.S. Session
• Hot Option Plays: Put Action Has Picked Up
• U.S. Markets Close Higher; Dow Jones Up 0.58%
• Earnings Preview: Boston Scientific
• U.S. Bancorp On Acquisition Spree
• Sanofi’s Iniparib Disappoints
• Forex – GBP/USD Up During The U.S. Session
• Auto Sales Pull Down Honda Profit
• Roper Beats With Strong Top Line
• Cosan Announces Prelim Results
• Forex – USD/CAD Up During The U.S. Session
• Dec. Restaurant Performance Index Back To Pre- Recession Level: Recovery Is Gaining Firm Foothold
• Forex Trading: EURJPY Consolidating Between The “Goal Posts”
• Subway Escalators: Moscow Vs. Washington D.C.
• Markets In Everything: ER Reservations?
• Forex – EUR/USD Up During The U.S. Session
• “All Eyes On Energy…related To Egypt, Middle East”
• Stockopedia Becomes The First Social Investing Platform To Launch Real-time Analytics For Contributors

Forex – EUR/USD Up During The Asian Session Posted: 31 Jan 2011 06:08 PM PST Forex Pros – The Euro was higher against the U.S. Dollar on Tuesday. EUR/USD was trading at 1.3720, up 0.20% at time of writing. The pair was likely to find support at 1.3570, Monday's low, and resistance at 1.3758, Thursday's high. Meanwhile, the Euro was down against the British Pound and up against the Japanese Yen, with EUR/GBP shedding 0.03% to hit 0.8548 and EUR/JPY rising 0.23% to hit … [visit site to read more] or compare Best Credit Cards and Best CD Rates

Forex – EUR/JPY Up During The Asian Session Posted: 31 Jan 2011 05:38 PM PST Forex Pros – The Euro was higher against the Japanese Yen on Tuesday. EUR/JPY was trading at 112.55, up 0.19% at time of writing. The pair was likely to find support at 111.41, Monday's low, and resistance at 114.01, Thursday's high. Meanwhile, the Euro was up against the U.S. Dollar and down against the British Pound, with EUR/USD gaining 0.18% to hit 1.3717 and EUR/GBP falling 0.06% to hit … [visit site to read more] or compare Best Credit Cards and Best CD Rates

Stock Market Summary For Monday, January 31, 2011 Posted: 31 Jan 2011 04:59 PM PST Today the DJIA gained 0.6% versus its 1.4% loss on Friday, the S&P 500 gained 0.8% versus its 1.8% loss on Friday, and the Nasdaq Composite gained only 0.5% versus its 2.5% loss on Friday.  The gains today did not recoup half of the losses on Friday and the buying pressure today was less than the selling pressure on Friday.  The majority of today’s rally was tied to the energy sector.  Staying with the trend we raising the support levels on the DJIA and S&P … [visit site to read more] or compare Best Credit Cards and Best CD Rates

Forex – GBP/JPY Up During The Asian Session Posted: 31 Jan 2011 04:48 PM PST Forex Pros – The British Pound was higher against the Japanese Yen on Tuesday. GBP/JPY was trading at 131.85, up 0.35% at time of writing. The pair was likely to find support at 129.82, Friday's low, and resistance at 132.67, Thursday's high. Meanwhile, the British Pound was up against the U.S. Dollar and the Euro, with GBP/USD gaining 0.28% to hit 1.6058 and EUR/GBP falling 0.08% to hit … [visit site to read more] or compare Best Credit Cards and Best CD Rates

Central Bank Of Colombia Holds Rate At 3% Posted: 31 Jan 2011 04:44 PM PST The Central Bank of Colombia held its benchmark interest rate unchanged at 3% but noted that it may begin to “gradually withdraw the monetary stimulus” if inflation rises beyond its target range. Colombia recorded inflation of 3.17% in 2010, which was inside the Bank’s target band of 2% to 4% inflation. Food prices increased late last year as torrential rains had an adverse impact on supply, and caused billions of dollars worth of … [visit site to read more] or compare Best Credit Cards and Best CD Rates

February In The History Books Posted: 31 Jan 2011 04:24 PM PST It’s been a while I know so it’s time to get back to the discipline of writing this blog …. I know all of you out there have been patiently looking for some current insights as to where this market might be going. To all of you thanks for coming back. I know I could try to come up with some excuses like the fact that I’ve been focusing on my subscribers and the subscription service. The truth is that after more than 600 posts, I just got burned out and needed to take a break to recharge. … [visit site to read more] or compare Best Credit Cards and Best CD Rates

This Week In Wall Street History Posted: 31 Jan 2011 04:15 PM PST Episode 2: In the latest installment of “This Week in Wall Street History”, Senior Lecturer for the Museum of American Finance, Richard Anderson, offers us a brief history of fast-food powerhouse Chipotle Mexican Grill and its road to its … [visit site to read more] or compare Best Credit Cards and Best CD Rates

Earnings Preview: Lincoln National Posted: 31 Jan 2011 04:05 PM PST The U.S. life insurer Lincoln National Corp. (NYSE:LNC) is scheduled to release its fourth quarter earnings results after the market opens on February 2, 2011. The Zacks Consensus Estimate for the fourth quarter is 88 cents per share, representing a loss of about 2.2% over the year-ago quarter. Following the third quarter trends, improvement in deposits, net flows and ending account balances could continue to accelerate the book value growth. This fundamental strength will also help drive the top … [visit site to read more] or compare Best Credit Cards and Best CD Rates

IRF Surpasses Estimates Posted: 31 Jan 2011 04:05 PM PST International Rectifier Corporation (NYSE:IRF) reported second quarter 2011 diluted earnings per share of 62 cents moving way ahead of the Zacks Consensus Estimate of 49 cents per share. This also compares favorably with a sequential increase of 47.6% and an increase of 1650% from net loss of 4 cents from year ago quarter. Management reasoned executing on the strategy to have delivered one of the most profitable quarters for the company in years. Strong demand in the appliance, industrial and … [visit site to read more] or compare Best Credit Cards and Best CD Rates

Rudolph Beats Estimates Posted: 31 Jan 2011 04:05 PM PST Rudolph Technologies, Inc (NASDAQ:RTEC) reported non-GAAP diluted earnings per share of 36 cents for the fourth quarter 2010, beating the Zacks Consensus Estimate of 31 cents. The result compares favorably with last year’s 2 cents. The GAAP earnings provided by the company was 30 cents per share, which increased significantly from a loss of 20 cents in the prior year quarter. Quarter in Detail Revenue for the quarter increased 86.9% from the prior year to $54.0 million, which failed to beat the … [visit site to read more] or compare Best Credit Cards and Best CD Rates

Forex – NZD/USD Up During The Asian Session Posted: 31 Jan 2011 03:53 PM PST Forex Pros – The New Zealand Dollar was higher against the U.S. Dollar on Monday. NZD/USD was trading at 0.7726, up 0.02% at time of writing. The pair was likely to find support at 0.7644, Wednesday's low, and resistance at 0.7793, Friday's high. Meanwhile, the New Zealand Dollar was up against the Australian Dollar and down against the Euro, with AUD/NZD shedding 0.06% to hit 1.2903 and EUR/NZD rising 0.08% to hit … [visit site to read more] or compare Best Credit Cards and Best CD Rates

USD/CHF Developing Bullish Divergences; 0.9480 Is Key Resistance Posted: 31 Jan 2011 03:52 PM PST USD/CHF - The USD/CHF is either in a wave B, or wave 2, as shown in the daily chart. - In both cases a rally for wave C, or 3 is approaching. Wave B can extend lower to the 0.93 low to end 2010. Wave 2 should have been complete here around 0.94 area. - A rally should at least test 0.9750, and can break above that towards parity. Note the extended bullish divergence in the daily chart. - The 4H chart also shows a bullish divergence as the market continues to hammer at the 0.94 level, cracking … [visit site to read more] or compare Best Credit Cards and Best CD Rates

The Day Ahead: Earnings, RBA Rate Decision, ISM Manufacturing Posted: 31 Jan 2011 10:50 AM PST 02/01/11 The stories, data, and stocks that may have the greatest impact during the next trading … [visit site to read more] or compare Best Credit Cards and Best CD Rates

ETF News Update: Oil Goes Parabolic Over Egypt (USO) Posted: 31 Jan 2011 03:42 PM PST The big news today was that domestic markets shrugged off the crisis in Egypt while oil prices didn't and hit two year highs.  West Texas Intermediate rose +2.69% to $91.90 while Brent Crude passed $100 for the first time since 2008.   To put this in perspective, Brent Crude was $70 as recently as five months ago, a gain of approximately 40%.  At home, Exxon blew away earnings estimates while the Chicago PMI came in at 68.8, a 20 year high and exceeding … [visit site to read more] or compare Best Credit Cards and Best CD Rates

ResMed EPS In Tune With Zacks Ests Posted: 31 Jan 2011 03:35 PM PST ResMed Inc. (RMD) reported second quarter 2011 EPS of 37 cents keeping in line with the Zacks Consensus Estimate but surpassing the year-ago result by a penny. The company reported revenue of $306 million, up 11% (14% at constant exchange rates, CER) compared with the year-ago quarter. However, revenues missed the Zacks Consensus Estimate by $4 million. Based on a favorable product mix and vastly under-penetrated and growing sleep-disorder breathing market, ResMed recorded a robust 10% growth … [visit site to read more] or compare Best Credit Cards and Best CD Rates

GBP/AUD Is In Wave B; Bearish In The Short-term; Bullish In The Intermediate Posted: 31 Jan 2011 03:31 PM PST GBP/USD - The GBP/AUD has been in a sharp rally since the beginning of the year, but found resistance at 1.61, giving way to a corrective swing down to the 1.5920 area. - The price action represents flattening in the 4H chart, and possible zig zag type correction down to 1.57, or 1.5740 (61.8% retracement). - In the 1H chart, price action shows a "w" pattern with topping near 1.6080 area. There might still be one more push towards 1.6110. If the market is contained below it, there is … [visit site to read more] or compare Best Credit Cards and Best CD Rates

Earnings Preview: NASDAQ Posted: 31 Jan 2011 03:05 PM PST Leading exchange operator NASDAQ OMX Group Inc. (NASDAQ:NDAQ) is scheduled to release its fourth quarter earnings results before the market opens on February 2, 2011. The Zacks Consensus Estimate for the fourth quarter is 51 cents per share, representing growth of about 10.6% over the year-ago quarter. Following the third quarter trends, the positive impact of exchange rates and substantially improved revenues from market and transaction services and market technology, cash equity and derivative … [visit site to read more] or compare Best Credit Cards and Best CD Rates

Earnings Preview: NASDAQ Posted: 31 Jan 2011 03:05 PM PST Leading exchange operator NASDAQ OMX Group Inc. (NASDAQ:NDAQ) is scheduled to release its fourth quarter earnings results before the market opens on February 2, 2011. The Zacks Consensus Estimate for the fourth quarter is 51 cents per share, representing growth of about 10.6% over the year-ago quarter. Following the third quarter trends, the positive impact of exchange rates and substantially improved revenues from market and transaction services and market technology, cash equity and derivative … [visit site to read more] or compare Best Credit Cards and Best CD Rates

Ratings Action On CIGNA Posted: 31 Jan 2011 03:05 PM PST Late last week, health insurance company CIGNA Corp. (NYSE:CI) received rating action from A.M. Best Co. wherein it affirmed the company's issuer credit rating (ICR) of "bbb." It also affirmed the strength rating (FSR) of "A" and ICRs of "a" for some subsidiaries of CIGNA including: Connecticut General Life Insurance Company Life Insurance Company of North America, CIGNA Life Insurance Company of New York and CIGNA Health and Life Insurance Company. The outlook on all the ratings has … [visit site to read more] or compare Best Credit Cards and Best CD Rates

Chesapeake, CNOOC Sign 2nd Deal Posted: 31 Jan 2011 03:05 PM PST Oklahoma-based independent oil and natural gas company Chesapeake Energy Corporation (NYSE:CHK) has inked its second deal with China’s top offshore oil producer CNOOC Limited (NYSE:CEO) for the sale of stakes in its U.S. Niobrara shale project. The deal is expected to close in the first quarter of 2011. Per the terms of the deal, CNOOC International, a unit of the parent company CNOOC Limited, will pay $570 million in cash for the undivided interest of 33.3% for Chesapeake’s 800,000 net oil and … [visit site to read more] or compare Best Credit Cards and Best CD Rates

ABB Completes Baldor Acquisition Posted: 31 Jan 2011 03:05 PM PST ABB Ltd. (NYSE:ABB) recently completed its previously announced acquisition of a leading industrial motors company of North America, Baldor Electric Company, for $4.2 billion, including net debt of $1.1 billion. The transaction was initially announced on November 30, 2010. The acquisition helps in achieving ABB's goal of becoming a leader in the North American Industrial motors business and a leader in movement and control in industrial applications in global markets. The inclusion of Baldor's … [visit site to read more] or compare Best Credit Cards and Best CD Rates

Hot Stocks To Watch On Tuesday, 01 February Posted: 31 Jan 2011 02:58 PM PST     ( click to enlarge ) Electronic Arts Inc. (NASDAQ:ERTS) made a strong upside reversal today. The technical chart above suggests that stock might find now resistance at $15.70, its 50-day MA. Only a close above this level would suggest further upside. I think the stock is due for recovery as %K line has crossed on top over %D line. The stock needs to close above this level in order to alleviate the negative near term view. Remain invested with a stop loss at $14.63. ( click to … [visit site to read more] or compare Best Credit Cards and Best CD Rates

Tenet Signs With Keystone MHP Posted: 31 Jan 2011 02:35 PM PST To provide coverage to two Philadelphia hospitals, Tenet Healthcare Corporation (NYSE:THC) has agreed to sign with Keystone Mercy Health Plan (MHP), which is a Medicaid managed care program in Philadelphia. However, the financial terms of the deal were not disclosed. Keystone MHP serves more than 300,000 members, and covers Hahnemann University Hospital and St. Christopher's Hospital for Children in Philadelphia, which offer patients access to a number of nationally recognized … [visit site to read more] or compare Best Credit Cards and Best CD Rates

Cohu Surpasses Estimates Posted: 31 Jan 2011 02:25 PM PST Cohu Inc. (NASDAQ:COHU) reported fiscal fourth quarter 2010 diluted earnings of 48 cents per share (according to Non-GAAP figure provided by the company) beating Zacks Consensus Estimate of 40 cents per share and also increased 336.4% from year ago quarter of 11 cents per share. This also compares favorably with the prior quarter earnings of 41 cents per share. On GAAP basis the diluted earnings came at 39 cents per share that bettered the previous quarter earnings of 32 cents. Quarter in … [visit site to read more] or compare Best Credit Cards and Best CD Rates

Yum! Repurchases Shares Posted: 31 Jan 2011 02:05 PM PST Yum! Brands Inc. (YUM) recently announced that its board has approved the share repurchase of an additional $750 million, as the company has been consistently enhancing shareholders' returns. The world's largest restaurant company will buy back shares over the next 18 months. The owner of KFC, Pizza Hut and Taco Bell chains currently has $130 million of share buyback remaining under the $300 million share repurchases authorized by the board in March 2010. Year to date, ended September 4, … [visit site to read more] or compare Best Credit Cards and Best CD Rates

Suntech Wins Siemens Contract Posted: 31 Jan 2011 02:05 PM PST Solar panel producer, Suntech Power Holdings Company Ltd. (NYSE:STP) signed an agreement with German engineering conglomerate, Siemens AG (NYSE:SI). Per the agreement Suntech will supply photovoltaic modules for Siemens planned European solar projects. Based in Wuxi, China, Suntech Power Holdings Company Ltd. is a solar energy company that designs, develops, manufactures and markets a variety of photovoltaic (PV) cells and modules, including a broad range of value-added building-integrated … [visit site to read more] or compare Best Credit Cards and Best CD Rates

The Rapid Recovery (in Profits) Posted: 31 Jan 2011 02:05 PM PST Corporate earnings are clearly recovering. They tend to do that after a recession. The graph below uses the "official" data on S&P 500 earnings from Standard and Poor's. The Zacks history is a bit different, since we look at the current composition of the S&P 500, while S&P uses the composition of the index at the time. When looking at relatively short-term changes — say quarter to quarter, or even year over year — the Zacks way of looking at things makes more sense, but … [visit site to read more] or compare Best Credit Cards and Best CD Rates

Closing Bell Market Monitor: AMD, MEE, CHK Posted: 31 Jan 2011 02:00 PM PST … [visit site to read more] or compare Best Credit Cards and Best CD Rates

Forex – EUR/USD Up At The End Of U.S. Session Posted: 31 Jan 2011 01:58 PM PST Forex Pros – The Euro was higher against the U.S. Dollar on Monday. EUR/USD was trading at 1.3693, up 0.60% at time of writing. The pair was likely to find support at 1.3570, today's low, and resistance at 1.3758, Thursday's high. Meanwhile, the Euro was down against the British Pound and up against the Japanese Yen, with EUR/GBP shedding 0.36% to hit 0.8551 and EUR/JPY rising 0.50% to hit … [visit site to read more] or compare Best Credit Cards and Best CD Rates

Forex – USD/JPY Down Toward The End Of U.S. Session Posted: 31 Jan 2011 01:43 PM PST Forex Pros – The U.S. Dollar was lower against the Japanese Yen on Monday. USD/JPY was trading at 82.08, down 0.07% at time of writing. The pair was likely to find support at 81.91, today's low, and resistance at 83.20, Thursday's high. Meanwhile, the U.S. Dollar was down against the Euro and the British Pound, with EUR/USD gaining 0.58% to hit 1.3690 and GBP/USD rising 1.00% to hit … [visit site to read more] or compare Best Credit Cards and Best CD Rates

How To Use ETFs To Invest In North Africa’s Unrest (EGPT, EFZ, USO) Posted: 31 Jan 2011 01:40 PM PST No doubt we live in fascinating times, both economically and politically, and this week the world's focus turned to the rolling political revolution and unrest in North Africa. The outbursts started in Tunisia with the ouster of a long standing authoritarian leader and have now spread across the north coast of the continent to Yemen and Egypt, both homes to long standing rulers in countries suffering from authoritarian rule, depressed living standards and high costs for food. The political … [visit site to read more] or compare Best Credit Cards and Best CD Rates

Dollar Financial Outshines YoY Posted: 31 Jan 2011 01:36 PM PST Dollar Financial Corp.'s (NASDAQ:DLLR) second-quarter operating earnings (excluding one-time gains) came in at 53 cents per share, a cent ahead of the Zacks Consensus Estimate of 52 cents but dramatically higher than the year-ago quarter's estimate of 19 cents per share. Results do not take into consideration the three-for-two stock split that is effective from February 4, 2011. The operating results exclude non-recurring gains, the non-cash interest expense resulting from the adoption of ASC … [visit site to read more] or compare Best Credit Cards and Best CD Rates

Merger Beckons Massey And Alpha Posted: 31 Jan 2011 01:36 PM PST Appalachian coal miner Massey Energy Company (NYSE:MEE) has agreed to merge its resources with Alpha Natural Resources Inc. (NYSE:ANR) to make good its losses since the deadly coal mining accident that occurred in April 2010. Massey Energy's quarterly results have been on the negative side following the deadliest U.S. coal mining disaster in 40 years, at the Upper Big Branch mine in West Virginia, which killed 29 workers. The company has been under scrutiny since the accident, which has impacted … [visit site to read more] or compare Best Credit Cards and Best CD Rates

Limited Brands Enhances Returns Posted: 31 Jan 2011 01:35 PM PST After Family Dollar Stores Inc. (NYSE:FDO) recently raised its quarterly dividend by 16.1% to 18 cents from 15.5 cents, and Tiffany & Company (NYSE:TIF) announced a new share repurchase program of $400 million, it is now Limited Brands Inc.’s (NYSE:LTD) turn to employ its free cash to enhance shareholders' returns, thus boosting investor confidence on the stock. Limited Brands, a specialty retailer of women's intimate and other apparel, raised its quarterly dividend by approximately 33.0% to 20 … [visit site to read more] or compare Best Credit Cards and Best CD Rates

Forex – EUR/USD Up Toward The End Of U.S. Session Posted: 31 Jan 2011 01:28 PM PST Forex Pros – The Euro was higher against the U.S. Dollar on Monday. EUR/USD was trading at 1.3690, up 0.58% at time of writing. The pair was likely to find support at 1.3570, today's low, and resistance at 1.3758, Thursday's high. Meanwhile, the Euro was down against the British Pound and up against the Japanese Yen, with EUR/GBP shedding 0.41% to hit 0.8546 and EUR/JPY rising 0.53% to hit … [visit site to read more] or compare Best Credit Cards and Best CD Rates

Hot Option Plays: Put Action Has Picked Up Posted: 31 Jan 2011 01:19 PM PST Cusick's Corner Egypt should not to be viewed as the main cause of the market's volatility, this event is happening during a time of already increasing volatility. Wheat markets will be the most effected and any potential slowdown happening in this exporting nation will add some short-term bearishness. After any regime shift this market could resume its continued bearishness. Oil will see some potential volatility but the real pressure to the upside in the black gold would only occur if … [visit site to read more] or compare Best Credit Cards and Best CD Rates

U.S. Markets Close Higher; Dow Jones Up 0.58% Posted: 31 Jan 2011 01:13 PM PST Forex Pros – U.S. stocks were up after the closing bell on Monday. At the close of U.S. trade, the Dow Jones Industrial Average rose 0.58%, the S&P 500 index gained 0.77%, while the Nasdaq 100 index climbed 0.50%. Meanwhile, across the Atlantic, European stock markets were mixed at close. France's CAC 40 was up 0.08%; Germany's DAX shed 0.36%; Britain's FTSE 100 declined 0.31%; and the EURO STOXX 50 fell … [visit site to read more] or compare Best Credit Cards and Best CD Rates

Earnings Preview: Boston Scientific Posted: 31 Jan 2011 12:55 PM PST BostonScientific (NYSE:BSX) is scheduled to release its fourth quarter and fiscal 2010 earnings on February 1, 2011 after the market close. The company is expected to report EPS of 10 cents on revenue of $1.989 billion for the quarter, and EPS of 38 cents on revenue of $7.794 million for the fiscal year, according to the Zacks Consensus Estimate. Previous Quarter Highlights Boston Scientific reported an adjusted EPS of 12 cents, surpassing the Zacks Consensus Estimate of 6 cents. However, … [visit site to read more] or compare Best Credit Cards and Best CD Rates

U.S. Bancorp On Acquisition Spree Posted: 31 Jan 2011 12:55 PM PST U.S. Bancorp (NYSE:USB) is on an acquisition spree. Its lead bank, U.S. Bank National Association has acquired the banking operations of New Mexico based First Community Bank, a subsidiary of First State Bancorporation in a Federal Deposit Insurance Corporation (FDIC) assisted deal. What's the Deal? As part of the transaction, approximately $2.1 billion of assets and $2.1 billion of liabilities, including $1.8 billion of insured and uninsured deposits, of First Community Bank would be acquired … [visit site to read more] or compare Best Credit Cards and Best CD Rates

Sanofi’s Iniparib Disappoints Posted: 31 Jan 2011 12:55 PM PST Sanofi-Aventis (NYSE:SNY) and its subsidiary, BiPar Sciences, recently announced disappointing results from a phase III study that was being conducted with the company's oncology candidate, iniparib (BSI-201). The randomized phase III study was conducted with 519 women suffering from metastatic triple-negative breast cancer (mTNBC). Patients were randomized to undergo treatment with Eli Lilly's (NYSE:LLY) Gemzar (gemcitabine) plus carboplatin with or without iniparib. Results showed that iniparib … [visit site to read more] or compare Best Credit Cards and Best CD Rates

Forex – GBP/USD Up During The U.S. Session Posted: 31 Jan 2011 12:48 PM PST Forex Pros – The British Pound was higher against the U.S. Dollar on Monday. GBP/USD was trading at 1.6015, up 0.98% at time of writing. The pair was likely to find support at 1.5770, Wednesday's low, and resistance at 1.6049, today's high. Meanwhile, the British Pound was up against the Euro and the Japanese Yen, with EUR/GBP shedding 0.37% to hit 0.8550 and GBP/JPY rising 0.89% to hit … [visit site to read more] or compare Best Credit Cards and Best CD Rates

Auto Sales Pull Down Honda Profit Posted: 31 Jan 2011 12:35 PM PST Honda Motor Co. (NYSE:HMC) posted a 40% decline in profit, reaching ¥81.12 billion ($995 million) or ¥45.01 (55 cents) per share in the third quarter of its fiscal 2011 from ¥134.63 billion or ¥74.19 per share in the same quarter of prior fiscal year. The fall in profit was attributable to decrease in automobile unit sales in all the regions, except North America. Consolidated net sales and other operating revenues in the quarter slipped 6% to ¥2.11 trillion ($25.90 billion) on the back of … [visit site to read more] or compare Best Credit Cards and Best CD Rates

Roper Beats With Strong Top Line Posted: 31 Jan 2011 12:10 PM PST Roper Industries Inc. (NYSE:ROP) reported strong fourth quarter 2010 results of $1.10 per share, surpassing the Zacks Consensus Estimate of 99 cents. The strong results were primarily driven by solid revenue growth and operating margin expansion in the quarter.  Operating Performance Roper reported earnings up 42.8% year over year and 26.4% sequentially. In fiscal 2010, earnings per share were $3.34, well above the Zacks Consensus Estimate of $3.25 and also the company guidance of $3.22 to … [visit site to read more] or compare Best Credit Cards and Best CD Rates

Cosan Announces Prelim Results Posted: 31 Jan 2011 12:10 PM PST Brazil-based Cosan Ltd. (NYSE:CZZ) announced its preliminary results for the third quarter of fiscal year 2011. Net revenue in the quarter totaled R$4,738.4 million (US$2,787.3 million), up 24.7% year over year. In the third quarter, CAA (Cosan Açúcar e Álcool) accounted for approximately 35.5% of the net sales with revenue totaling R$1,683.0 million (US$990 million), an increase of 46.8% year over year. Sugar revenue surged 26.7% to R$931.9 million (US$548.2 million), primarily due to a 7.4% … [visit site to read more] or compare Best Credit Cards and Best CD Rates

Forex – USD/CAD Up During The U.S. Session Posted: 31 Jan 2011 12:08 PM PST Forex Pros – The U.S. Dollar was higher against the Canadian Dollar on Monday. USD/CAD was trading at 1.0015, up 0.04% at time of writing. The pair was likely to find support at 0.9927, Thursday's low, and resistance at 1.0058, today's high. Meanwhile, the U.S. Dollar was down against the Euro and the British Pound, with EUR/USD gaining 0.57% to hit 1.3689 and GBP/USD rising 1.00% to hit … [visit site to read more] or compare Best Credit Cards and Best CD Rates

Dec. Restaurant Performance Index Back To Pre- Recession Level: Recovery Is Gaining Firm Foothold Posted: 31 Jan 2011 11:58 AM PST “Driven by expanding same-store sales and customer traffic levels as well as growing optimism among restaurant operators, the outlook for the restaurant industry improved in December. The National Restaurant Association's Restaurant Performance Index (RPI) – a monthly composite index that tracks the health of and outlook for the U.S. restaurant industry – stood at 101.0 in December, up a strong 1.1 percent from its November level (see chart). In addition, December marked the third time … [visit site to read more] or compare Best Credit Cards and Best CD Rates

Forex Trading: EURJPY Consolidating Between The “Goal Posts” Posted: 31 Jan 2011 11:45 AM PST I define the "Goal Posts" as the space between the 100 and 200 bar MA. In the chart above the 100 (blue line in the chart above) and 200 bar MA (green line) are 40 or so pips away from each other. Over the last 10 hours, the price has been ranging between the two MA levels. In other words,  it has traded between the Goal Posts.  With the price currencly below the 100 hour MA, the bias is to the downside, but until the 200 hour MA is broken, traders will use the MA level as a … [visit site to read more] or compare Best Credit Cards and Best CD Rates

Subway Escalators: Moscow Vs. Washington D.C. Posted: 31 Jan 2011 11:39 AM PST Anybody who uses the DC Metro system on a regular basis, like I have on almost a daily basis for the last 16 months, will appreciate this story from the Washington Post. The dependability and reliability of the Moscow escalators (Soviet efficiency?) seem almost too good to be true after experiencing the frequent (almost daily) breakdowns of the DC Metro system (capitalist inefficiency?): “The trains get to stop every few minutes. Not the escalators. In a city tied together by its phenomenally … [visit site to read more] or compare Best Credit Cards and Best CD Rates

Markets In Everything: ER Reservations? Posted: 31 Jan 2011 11:23 AM PST KTLA News — “Instead of showing up at the emergency room and risking a wait, why not make a reservation? Lakewood Regional Medical Center announced on Thursday that you can do just that. Patients with non-emergency conditions can make an appointment for 90 minutes to 2 hours in advance using InQuickER at www.LakewoodER.com. Non-emergency patients can wait up to 2 hours if they just showed up at an emergency room, according to hospital officials. Those who use the online service will pay a … [visit site to read more] or compare Best Credit Cards and Best CD Rates

Forex – EUR/USD Up During The U.S. Session Posted: 31 Jan 2011 11:18 AM PST Forex Pros – The Euro was higher against the U.S. Dollar on Monday. EUR/USD was trading at 1.3680, up 0.51% at time of writing. The pair was likely to find support at 1.3570, today's low, and resistance at 1.3758, Thursday's high. Meanwhile, the Euro was down against the British Pound and up against the Japanese Yen, with EUR/GBP shedding 0.47% to hit 0.8542 and EUR/JPY rising 0.44% to hit … [visit site to read more] or compare Best Credit Cards and Best CD Rates

“All Eyes On Energy…related To Egypt, Middle East” Posted: 31 Jan 2011 10:10 AM PST 01/31/11 Meridian Equity Partners’ Joseph Greco discusses the latest geopolitical risks, amidst political unrest in … [visit site to read more] or compare Best Credit Cards and Best CD Rates

Stockopedia Becomes The First Social Investing Platform To Launch Real-time Analytics For Contributors Posted: 31 Jan 2011 04:19 AM PST 01/02/2011 London, UK: , the premier social media site for UK stock market investors, today announces the launch of its Publisher Analytics platform that allows third party publishers and bloggers on the site to more accurately measure readership and engagement for their content on a real-time basis, making Stockopedia the first social media investing site to offer such a service. Stockopedia CEO Edward Croft said: "Although Google Analytics has understandably been the mainstay analytics tool … [visit site to read more] or compare Best Credit Cards and Best CD Rates

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