Saturday, November 30, 2013

Franco-Nevada: Safe Way to Play Gold

The bottom for gold appears to be in place. Now the question is how to play it. I suggest looking at a gold streaming and royalty company, suggests Tyler Laundon in Daily Profit.

This royalty business model of Franco-Nevada Gold (FNV) is a winner, especially in this environment, since Franco-Nevada avoids various risks associated with developing and operating gold mines.

Yet investors still get exposure to the upside of commodity price, reserve, and production increases.

In exchange for an initial investment, which helps a miner fund exploration or mine development, Franco-Nevada receives the rights to a portion of future gold production. This royalty is usually around 2% of the extracted gold.

Royalty companies like Franco-Nevada are not subject to cash calls to fund exploration, development, or mine closures.

And they do provide operational or mine development management, so a large and diversified portfolio can be assembled without the need for significant corporate overhead. For example, Franco-Nevada owns a royalty interest in more than 300 different projects.

The hard work is deciding which projects to buy into, negotiating the terms, and figuring out how much to pay. Franco-Nevada has a proven history of doing this well, and I believe the current environment offers up several new opportunities.

Hundreds of junior gold miners are sitting on too few dollars to stay in business. With their share prices obliterated, they can't even tap the equity markets to raise cash. Franco-Nevada can sweep in and buy up assets at fire-sale prices.

As a final point, I should mention that over the past two years, shares of Franco-Nevada are actually up, by 15%. That's incredible performance in the face of an imploding industry.

And I believe it highlights the fact that the gold royalty and streaming business offers investors exposure to gold's strength, without the associated downside risk that an individual miner might face.

Given the low-risk business model, I think Franco is a good way for gold investors to get some exposure to the precious metal today.

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More from MoneyShow.com:

Mexico, Mines, and Moxie

Goldcorp: Fast Growth, Low Costs

US Global: Contrarian Call on Gold and Energy

Friday, November 29, 2013

Strategies: Perfection not always Job One for s…

If you're an entrepreneur who wants to start a new business, should you spend a lot of time and money perfecting your product or service before you try to get customers?

Should you spend months or years doing product or market research, finalizing your design and eliminating every glitch?

COLUMN: Target your market to gain customers
COLUMN: 'Lean startup' is cutting-edge buzzword

No, not if you follow the lean start-up method Eric Ries advocates in his best-selling book, The Lean Startup: How Today's Entrepreneurs Use Continuous Innovation to Create Radically Successful Businesses. (Crown Business, 2011, $26).

The lean start-up has been a hot trend in entrepreneurial circles for a few years. But is it right for most small businesses?

In a nutshell, the lean start-up approach advocates launching a product or service as quickly as possible, seeing how real customers use the product then continually revising.

Ries calls it "build-measure-learn." Or as Marissa Mayer, when she was head of product development at Google (she's now Yahoo! chief executive), explained to me as Google's mantra: "experiment, expedite, iterate."

The key tenets of a lean start-up include these:

• Create a minimally viable product. You don't need to go to market with a fully developed product or service.

Indeed, it's not even advisable. Build only to a level that enables you to go out and get your first customers.

• Test and measure. Continually learn from customers.

Analyze exactly how they are dealing with your product or service.

• Pivot. Be able to swivel away from your original vision to adapt to new realities but stay grounded in what you've learned.

The lean start-up approach has been particularly popular in the technology world, especially for mobile apps and cloud-based software.

It is well suited to an industry with lots of competition and quickly changing technology. Users also have a relatively high tolerance for glitches.

But! is a Version 1.0 approach appropriate for most small businesses, especially when you're not in the technology sector?

Small businesses often have fewer monetary and human resources than tech start-ups, which might have investors. So they have a greater need to start making sales, satisfying and retaining customers.

Yet small businesses rarely enjoy the luxury of having customers patient enough with minimally viable products to stick around.

Ries uses the example of Craigslist as a company that put out a "low-quality" product yet still succeeded. However, Ries overlooks that Craigslist offers users an unbeatable proposition: They can run classified ads for free instead of having to pay for ads in their local newspaper.

On the other hand, your small business needs to make money.

If you're launching a new day-care center, your customers, who are parents, won't stick around until you figure out how to take care of their children adequately. If you run a restaurant, customers won't return if they have had a bad meal.

Your minimally viable product still has to be fairly maximum. That means you must plan and attend to details.

But Ries has a point. Many small businesses just need to get moving.

You don't have to do everything perfectly right out of the gate. And you definitely need to learn from your customers and improving continually.

Here's the lean-start-up advice I've been giving to entrepreneurs for years:

• Go out and make a sale. Even before you have your product or service — and certainly before its perfected — test the waters.

How do real customers respond? What do they care about?

• Do something, which often is better than nothing. Some small businesses wait years before undertaking a critical business task — launching a website, exhibiting at a trade show, developing another channel — until they can do it perfectly or find the perfect time.

Just do it.

• Know that money is time. Spend slowly and only ! on items ! that bring you income.

That buys you more time to get it right.

• Keep adapting. Once launched, you need to take care of business to keep the money coming in.

Nevertheless, your other job is to be improving continually and listening to customers. Otherwise, you'll die.

• Have more than one great idea. If the market tells you your first idea isn't working, change it.

In my own business, we, too, suffer from feeling that we must be perfect.

So we're trying to take more of a lean start-up approach to new product development and get used to living in a Version 1.0 world.

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Rhonda Abrams is president of The Planning Shop and publisher of books for entrepreneurs. Her most recent book is Entrepreneurship: A Real-World Approach. Register for Rhonda's free newsletter at PlanningShop.com. Twitter: @RhondaAbrams. Facebook: facebook.com/RhondaAbramsSmallBusiness.Copyright Rhonda Abrams 2013.

Thursday, November 28, 2013

Halloween freebies is growing restaurant trend

Halloween, the night when kids rake-in gobs of free candy, is evolving into an occasion when parents also can walk-off with something equally enticing: free meals for the kids.

A growing parade of restaurant chains – from Olive Garden to IHop to Krispy Kreme – will offer free eats around Halloween in order to lure traffic during a seriously slow time.

Halloween evening is a time when most families eat at home. While Halloween is one of the pizza delivery industry's biggest days of the year, it's an evening when many casual dining restaurants are scraping for business.

"Restaurants are like ghost towns on Halloween," says Derek Farley, a restaurant industry PR guru. Much like Labor Day and July 4th, Halloween is a holiday that's not very restaurant-friendly, he says.

So, what's a savvy restaurant to do? Entice families by giving away the kids grub, of course. Although the specific dates, times and rules vary -- so it's best to check restaurant websites for details -- here's some of 2013's Halloween lures:

- Free kids meal with coupon. Three of Darden's most familiar chains, Olive Garden, Red Lobster and LongHorn Steakhouse, all offer free kids meals for much of Halloween week. All require the purchase of an adult entree for each free kids meal. And all require sign-up -- and a coupon -- from the chain's website or Facebook page.

"Halloween isn't a day you're going to see a lot of kids in restaurants—they're trick or treating," notes Jay Spenchian, executive vice president of marketing at Olive Garden. "We see this as an opportunity to help drive additional traffic into the restaurant on an historically slow day."

Last year, 6,000 families came to Olive Garden with kids in costume. While still encouraging costumes, the chain dropped that requirement for the freebie this year.

- Free kids pancake. On Halloween, kids age 12 and under get a free Halloween "Scary Face" Pancake at IHOP. The pancake, with a whipped-cream smile dotted with candy corn, ! is one of IHOP's "most requested holiday promotions," says Natalia Franco, vice president of marketing.

- Cheaper meal with costume. On Halloween, from 4 PM to closing, Chipotle will offer its annual "Boorito" promo. All customers dressed in costumes get a $3 burrito, bowl, salad, or order of tacos. Proceeds of up to $1 million will go to charity. Over the past three years, the program has raised more than $3 million for The Chipotle Cultivate Foundation, says Mark Crumpacker, chief marketing officer.

- Free snack with costume. Krispy Kreme may have the fewest strings of all. Just show up in the store -- adult or kid -- in any costume at participating locations on Halloween day, and walk off with a free doughnut. Ah, you might want to remove your mask before eating it.

Tuesday, November 26, 2013

Birinyi Diverges From Einhorn Short Forecasting S&P 500 at 1,820

Two of America's best known investors are moving in opposite directions in the stock market, with Laszlo Birinyi predicting more gains as David Einhorn takes a more cautious approach.

Holdings that profit if stocks gain at Einhorn's Greenlight Capital Re Ltd.'s exceeded short bets by 35 percentage points as of Sept. 30, compared with about 42 percentage points three months earlier, he said today on a conference call.Birinyi, president of Birinyi Associates Inc., said the Standard & Poor's 500 Index will reach 1,820 by February and bought calls that profit from a rally in equity benchmark.

The divide is widening between Birinyi, whose bullish forecasts have proved prescient during a 4 1/2-year bull market, and Einhorn, who gained fame betting against Lehman Brothers Holdings Inc. Stocks in the U.S are in the midst of their broadest advance on record, a rally that has burned short sellers and pushed valuations to the highest levels since 2010 as the S&P 500 (SPX) reaches all-time highs.

"As the market continued its relentless climb, we've become more conservatively positioned," said Einhorn, a hedge-fund manager and chairman of Greenlight Re, a Cayman Islands-based reinsurer.

Stocks climbed this year as earnings exceeded analyst forecasts, unemployment declined and the Federal Reserve continued its economic stimulus program. The S&P 500 has gained 4.9 percent in October, bringing the advance for the year to 24 percent, the most since 2003. The advance has pushed the price-earnings ratio up almost 20 percent to 16.7, according to data compiled by Bloomberg.

Call Options

Birinyi predicts a 3.2 percent advance to 1,820 in the next three months, according to a report today. His firm purchased calls on the SPDR S&P 500 ETF Trust (SPY) with a strike price at $182 that expire in January 2014. The exchange-traded fund closed at $176.29 yesterday. The S&P 500 was little changed at 1,764.73 at 1:47 p.m. in New York.

Einhorn said most of the portfolio gain in the third quarter was from long holdings in companies including Apple Inc. (AAPL) He said he was sticking with his short positions, or wagers that a stock will decline, including one on Green Mountain Coffee Roasters Inc.

"The losses in the short book were broad-based, and we continue to be short most of the companies that contributed to the loss," he said. "These include a variety of companies which tend to have conventional valuations, rather than speculative story stocks that have caused excessive pain for other short sellers."

Investment Returns

Greenlight Re's investment portfolio returned 4 percent in the third quarter and 12 percent in the first nine months of the year, the company said yesterday in a filing. That compares with 5.2 percent and 20 percent for the S&P 500, including dividends. The reinsurer's portfolio was valued at $1.15 billion as of Sept. 30.

Einhorn, 44, has sounded alarms about the climb in asset prices for months. Last year he compared excessive stimulus by central bankers with eating too many jelly donuts, a habit that can be a threat to long-term health, according to an article that quoted him in Grant's Interest Rate Observer.

Birinyi's 1,820 forecast comes after he said in August the S&P 500 would reach 1,740 by the end of the year. He projected in January that the index had more than a 50 percent chance of reaching 1,600 in 2013. The gauge surpassed 1,600 in May and 1,740 this month.

Unexpected Obstacles

"We took it on a step-by-step basis expecting some detours and unexpected obstacles, which did occur," Birinyi wrote.

The S&P 500 has a 51 percent chance of reaching the new forecast by Jan. 31 and a 75 percent chance of doing so by March 31, according to today's note.

Birinyi has stuck to his bullish projections since the rally began. He said the bull market was intact in August 2011 when S&P's downgrade of the U.S.'s AAA credit rating helped send the index down almost 20 percent.

He cautioned investors not to "get shaken out" in May 2012, as stocks lost 9.9 percent. This year represents the fourth and final phase of the rally, during which gains accelerate as investors pile in, Birinyi said.

The index will drop to 1,718 by year's end, according to the average of 19 Wall Street strategist projections compiled by Bloomberg, whose estimates range from 1,440 to 1,800.

Sunday, November 24, 2013

H-P’s sales are lackluster; its stock swings ar…

SAN FRANCISCO — Hewlett-Packard shareholders may be in for a wild ride after the company reports fiscal fourth-quarter results Tuesday.

The hardware giant's last three earnings reports have triggered sustained double-digit-percentage price swings in H-P's stock.

In February and May, that was good news, as investors bid up the company's shares amid signs CEO Meg Whitman's turnaround plan was reviving the company's fortunes.

But H-P's August report was a disappointment: The company missed Wall Street estimates after sales fell in all but one of its six business units.

That prompted a one-day stock drop of more than 12% and triggered a two-month share price slide that wiped out one-fifth of the company's market value by early October.

Yet the shares have bounced back. After closing trading last week at just over $25, they've gained almost 70% this year and are now priced almost exactly where they were before that nasty August surprise.

For a venerable technology icon with a market cap of $49 billion, that's some crazy trading action.

The share volatility reflects uncertainty among investors over whether Whitman, who oversaw dramatic growth during her decade-long tenure as eBay CEO, can get the lumbering, 74-year-old H-P growing again.

During her two years and two months in H-P's top job, Whitman has steadied a firm that looked ready to implode after its board ousted her predecessor, Leo Apotheker, after he was widely seen to have overpaid for software maker Autonomy — $10.3 billion in 2011.

H-P is once again operating in the black, earning net income of $3.7 billion for the first nine months of this fiscal year, reversing a massive $5.8 billion loss for the same period a year earlier.

During the same time, the company's operations have generated almost $8.8 billion in cash flow, 35% more than a year ago.

That's allowed H-P to keep paying handsome stock dividends that keep income investors happy.

Whitman has done it by improving the ! company's efficiency and slashing costs, with operating expenses dropping 18% for the first nine months of the fiscal year. For the quarter ended in July, those expenses were 34% lower.

Yet Whitman has been unable to re-ignite growth, as falling sales of PCs have now spread to related H-P businesses such as printers, services and other hardware.

The Palo Alto, Calif., company has been hurt by a lack of smartphones and tablets as consumers embrace those handheld devices, and by increased competition from Cisco Systems and other hardware makers.

Even H-P's software business, which was posting double-digit annual sales growth when Whitman became CEO, has stalled, with sales rising a mere 1% for the July quarter.

The software meltdown is due in large part to the disastrous Autonomy deal. In November, H-P took an $8.8 billion write-down on the transaction, generating a massive net loss, while accusing the British-based maker of data analytics software of "serious accounting improprieties."

John Shinal, technology columnist for USA TODAY.(Photo: USA TODAY)

That accounting charge may have been necessary, but the accusation likely didn't help promote confidence among H-P's potential software customers.

Amid a drop in sales of hardware and services to corporate customers — both segments posted year-over-year revenue declines of 9% in the July quarter — Whitman has been promoting H-P's business of hosting other company's data on its servers, a service known as cloud computing.

Last week, she appeared onstage with Marc Benioff, CEO of fast-growing cloud-computing giant Salesforce.com, at the latter company's user conference to announce a new partnership involving H-P servers.

Also last ! week, a r! eport surfaced that H-P was in talks with Sharp about a partnership that could see the Asian electronics giant producing H-P-branded photocopiers.

Still, it will take time for any new partnerships to help boost H-P's flagging top line.

Analysts expect H-P's fourth-quarter sales fell almost 7% to $28 billion, while sales for the fiscal year dropped nearly 8% to $111 billion.

Wall Street is also pessimistic about Whitman's ability to generate growth in the upcoming fiscal year, with analysts expecting another 3% revenue decline.

Next-year's expectations may well be revised after analysts hear what Whitman and other H-P executives have to say on a conference call Tuesday.

If recent history is any guide, H-P shareholders may want to buckle up before Wednesday's trading begins.

John Shinal has covered tech and financial markets for 15 years at Bloomberg, BusinessWeek, the San Francisco Chronicle, Dow Jones MarketWatch, Wall Street Journal Digital Network and others.

Saturday, November 23, 2013

Men’s Wearhouse fires back at George Zimmer

A day after George Zimmer quit the board of Men's Wearhouse, the company released an unusually detailed statement of why the well-known pitchman and company founder was fired last week.

UPDATE: Men's Wearhouse nixes Jos. A. Bank offer

Zimmer "refused to support" a management team that replaced him unless they "acquiesced to his demands," the board statement released Tuesday said. He "expected veto power over significant corporate decisions (including executive compensation), and reversed his longstanding position against taking the company private," it said.

COMPANY: June 25 statement from Men's Wearhouse board of directors

Shares of Men's Wearhouse jumped 5.7% Tuesday to close at $37.13. The 52-week trading range of the stock is $25.97 to a peak of $38.59.

Zimmer, 64, was abruptly fired as the company's executive chairman a week ago in a terse statement with no details. On Monday, he submitted a letter resigning from the board. The Associated Press reported he was not immediately available for comment Tuesday.

Zimmer, who owns about 3.5% of the company's shares, is one of TV's most recognizable pitchmen in company ads that almost always appeared during televised NFL games and featured the slogan: "You're going to like the way you look. I guarantee it."

Zimmer's resignation letter says it's clear from his firing that the board is determined to avoid addressing his growing concerns with recent board decisions and the company's direction.

ZIMMER: Story on June 19 firing of company founder

In the lengthy response, the board charged that not only had Zimmer refused to work with the new management team and argued for sale to an investment firm, he had tried to undermine company efforts to have an outside firm review strategic options.

Doug Ewert replaced Zimmer as CEO more than two years ago. Zimmer seemed to have difficulty "accepting the fact that Men's Wearhouse is a public company with an independent board of directors," the statement said. "T! he board is unanimously of the view that now is not the time to sell the company. ... Our actions were not taken to hurt George Zimmer."

"Reminds me of when the Gap fired Mickey Drexler," says Eric Gustavsen, a principal at Graj & Gustavsen brand imaging firm. "They brought in a leader who was not a merchant and it took them over 10 years to right the ship. ... Mickey went on to build J. Crew and Madewell."

Some financial analysts have speculated that the company split with Zimmer in an attempt to appeal to a younger demographic. According to online daily branding research firm YouGov, Men's Warehouse had an edge in purchase consideration with Millennials, ages 19-34, that began to erode in December.

According to YouGov's brand index, Men's Warehouse continues to outperform competitors with shoppers 35 and older. However, so far in 2013, menswear brands sold at Joseph A. Bank, Nordstrom, Macy's and Lord & Taylor have pulled ahead in wooing Millennials.

Financials don't yet reflect that. Same-store sales were up 7.1% year-over-year in the fiscal first quarter reported June 12 and profits increased 23%, the company said. Revenue and profit gain have been on the upswing the past two years after recovering from the hammering the company and its rivals got during the Great Recession.

"They can certainly be successful with or without George Zimmer if they do a great job: stay true to their brand, continue to deliver value and style, and forge great relationships with their customers," Gustavsen says.

Zimmer built Men's Wearhouse from one small Texas store using a cigar box as a cash register to one of North America's largest men's clothing sellers, with 1,143 locations.

Beyond creating a successful men's retail chain, Zimmer is known as something of a cowboy in the business world. He added spiritual leader Deepak Chopra as a board member in 2004 and spent millions of his own money in 2010 supporting California's failed Proposition 19 to legalize marijuana. Men! 's Wearho! use also didn't conduct criminal background checks on hires because Zimmer believes everyone deserves a second chance.

Contributing: USA TODAY's Ben Mitchell, Jayne O'Donnell, The Associated Press

Thursday, November 21, 2013

Insiders Are Buying EnerCare

One consumer goods company has seen intensive insider buying during the last 30 days. Intensive insider buying can be defined by the following three criteria:

The stock is purchased by three or more insiders within one month.

The stock is sold by no insiders in the month of intensive purchasing.

At least two purchasers increase their holdings by more than 10%.

EnerCare (TSX:ECI) engages in water heater rental and sub-metering businesses. EnerCare owns a portfolio of approximately 1.2 million installed water heaters and other assets, rented primarily to residential customers in Ontario. EnerCare also owns EnerCare Connections Inc., a sub-metering company, with metering contracts for condominium and apartment suites in Ontario, Alberta and elsewhere in Canada.

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Insider Buying During the Last 30 Days
John MacDonald purchased 2,500 shares on Sept. 17 to 30 and currently holds 35,175 shares or less than 0.1% of the company. John MacDonald was appointed president and chief executive officer of EnerCare in November 2006. John MacDonald increased his holdings by 7.7% in September.Michael Rousseau purchased 10,000 shares on Sept. 24 to 25 and currently holds 10,000 shares or less than 0.1% of the company. Michael Rousseau serves as a director of the company. Michael Rousseau increased his holdings from zero shares to 10,000 shares in September.John Toffoletto purchased 2,000 shares on Sept. 30 and currently holds 4,400 shares or less than 0.1% of the company. John Toffoletto is senior vice president, general counsel and corporate secretary. John Toffoletto increased his holdings by 90.9% in September.Insider Buying by Calendar Month

Here is a table of EnerCare's insider-trading activity by calendar month.

MonthInsider buying / sharesInsider selling / shares
Sep! tember 201314,5000
August 20134000
July 201300
June 20134,0000
May 201312,1000
April 201300

There have been 31,000 shares purchased and there have been zero shares sold by insiders since April 2013.

Financials

EnerCare reported the second-quarter financial results on Aug. 12 with the following highlights:

Revenue$71.6 million
Net income$7.5 million
Cash$11.5 million
Debt$531.9 million

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Outlook

EnerCare believes that it has sufficient cash flow, cash on hand and credit available to meet its 2013 obligations, including capital expenditures, financing activities and working capital requirements for its businesses.

EnerCare intends to increase its monthly dividend to $0.058 per share, an increase of 1.8%, effective in respect of the dividend payable to shareholders of record on the applicable date in September 2013, which will be paid in October 2013. The dividend increase reflects EnerCare's strong performance in the first half of 2013, its long-term stable financial structure, recent reductions in attrition and the confidence the board has in the company moving forward.

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Competition

EnerCare's competitors include Reliance Home Comfort, Newton Home Comfort and National Home Services. National Home Services is a subsidiary of Just Energy Group (TSX:JE). Just Energy Group has seen one insider buy transaction during the past six months. Jus! t Energy ! Group is trading at a P/E ratio of 4.1 and the stock has a dividend yield of 12.8%.

Conclusion

There have been three different insiders buying EnerCare and there have not been any insiders selling EnerCare during the past 30 days. Two of these three insiders increased their holdings by more than 10%.

EnerCare has a dividend yield of 7.2%. I have a cautiously bullish bias for the stock currently based on the intensive insider buying.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Wednesday, November 20, 2013

Best China Stocks To Buy For 2014

It's been a long road for GT Advanced Technologies (NASDAQ: GTAT  ) and there are a lot of questions the company faces going forward. When will its technology take off? When will revenue pick up? And when can investors expect to see a profit.

GTAT Revenue Quarterly data by YCharts

The past year has been particularly bad for the company, but there are a few things that investors can look forward to in a company that's quietly providing technology that could affect many growing industries.

Technology potential
GT Advanced Technologies has long been reliant on the solar industry for demand, and when China was handing out easy money for expansion times were good. But, in the last year, the expansion boom stopped in China and revenue has suffered.

The next step in the industry is to build even more efficient modules using an N-type cell. GTAT is making the HiCz product to fill that need with targeted cell efficiency of 22%-24%, which is planned to be launched in 2014. The technology is better than what exists now and has similar costs, so if the capital exists to expand, then the product should be a success. �

Best China Stocks To Buy For 2014: ChinaEdu Corporation(CEDU)

ChinaEdu Corporation, together with its subsidiaries, provides educational services to the online degree programs of universities in the People?s Republic of China. It also offers online tutoring services to primary and secondary school students; operates primary and secondary schools; and markets international English language curriculum programs to established learning institutions, as well as international polytechnic programs to vocational schools in China. The company?s online degree programs offer associate and bachelor?s degree programs, including accounting, marketing, finance, business administration, international business, law, civil engineering, education, computer science, literature, project management, marketing, and administrative management. These online degree programs primarily target working adults. Its services also include academic program development, technology services, enrollment marketing, recruiting, student support services, and finance operati ons. The company provides technical, recruiting, and other services for the online degree programs of 27 universities; and technology support services to 7 additional universities that are awaiting regulatory approval to launch their online degree programs. As of December 31, 2010, it served approximately 311,000 online degree programs students, as well as approximately 51,450 students in other businesses. ChinaEdu Corporation was founded in 1999 and is based in Beijing, the People?s Republic of China.

Best China Stocks To Buy For 2014: Changyou.com Limited(CYOU)

Changyou.com Limited develops and operates online games in the People?s Republic of China. It involves in the development, operation, and licensing of massively multi-player online role-playing games (MMORPGs), which are interactive online games that might be played simultaneously by various game players. The company operates seven MMORPGs that include its in house developed Tian Long Ba Bu; and licensed Blade Online, Blade Hero 2, Da Hua Shui Hu, Zhong Hua Ying Xiong, Immortal Faith, and San Jie Qi Yuan. As of December 31, 2010, Changyou?s games in China had approximately 111.4 million aggregate registered accounts; 1.0 million aggregate peak concurrent users; and 2.7 million aggregate active paying accounts. The company was founded in 2003 and is based in Beijing, the People?s Republic of China. Changyou.com Limited is a subsidiary of Sohu.com Inc.

Advisors' Opinion:
  • [By Kevin Chen]

    To be fair, these revenues come from their stake in game company Changyou (NASDAQ: CYOU  ) . Because Sohu owns a majority stake in Changyou, Sohu must consolidate all financials into its statements -- even as Changyou is independently listed on stock exchanges. Whatever the case, Sohu actually created Changyou -- it started as a business unit in 2003, then was spun out in 2007. In any case, Sohu should do some serious soul-searching.

Top 10 High Tech Stocks To Watch For 2014: China Kanghui Holdings(KH)

China Kanghui Holdings develops, manufactures, and markets orthopedic implants and associated instruments. It offers approximately 30 product series of orthopedic implants and associated instruments for trauma, spine, cranial maxillofacial, and craniocerebral indications. The company?s trauma products include a range of nails, plates and screws, and cranial maxillofacial plate and screw systems used in the surgical treatment of bone fractures. Its spine products comprise screws, meshes, interbody cages, and fixation systems used in the surgical treatment of spine disorders. China Kanghui Holdings also manufactures products, including implants, implant components, and instruments for original equipment manufacturers. The company markets its products under Kanghui and Libeier brand names through third-party distributors to hospitals and surgeons. It sells its products in Asia, Europe, South America, and Africa. The company was founded in 1996 and is headquartered in Changzho u, the People?s Republic of China.

Best China Stocks To Buy For 2014: General Steel Holdings Inc. (GSI)

General Steel Holdings, Inc., through its subsidiaries, engages in the manufacture and sale of steel products in the People's Republic of China. It offers hot-rolled carbon and silicon steel sheets primarily for use in the production of small agricultural vehicles and other specialty markets; spiral-weld pipes for the energy sector primarily to transport oil and steam; and high-speed wire and reinforced bar products for the construction industry. The company sells its products primarily to distributors. General Steel Holdings, Inc. was founded in 1988 and is headquartered in Beijing, the People?s Republic of China.

Best China Stocks To Buy For 2014: CNOOC Limited(CEO)

CNOOC Limited, through its subsidiaries, engages in the exploration, development, production, and sale of crude oil, natural gas, and other petroleum products. The company?s oil and natural gas properties are located in offshore China, which include Bohai Bay, western south China Sea, eastern south China Sea, and east China Sea, as well as in Indonesia, Iraq, and other regions in Asia; and Oceania, Africa, North America, and South America. As of December 31, 2010, the company had net proved reserves of approximately 2.99 billion barrels-of-oil equivalent, including approximately 1.92 billion barrels of crude oil and 6,458.3 billion cubic feet of natural gas. It also provides bond issuance services; and has a joint venture with Bridas Energy Holdings. CNOOC Limited was founded in 1982. The company is headquartered in Central, Hong Kong, and is considered a Red Chip company due to its listing on the Hong Kong Stock Exchange. CNOOC Limited is a subsidiary of China National Of fshore Oil Corporation.

Advisors' Opinion:
  • [By Arjun Sreekumar]

    For instance, Chesapeake's 2010 agreement with China's largest energy company, CNOOC (NYSE: CEO  ) , allowed CNOOC to purchase one-third undivided interest in a portion of Chesapeake's Eagle Ford assets in exchange for financing 75% of Chesapeake's drilling and completion expenses.

  • [By Arjun Sreekumar]

    Initially, exploration activity in the Arctic was confined primarily to Western oil majors. But recently, the China National Offshore Oil Corporation, better known as CNOOC (NYSE: CEO  ) , became the first Chinese oil company to make a play for Arctic oil. Let's take a closer look at why China has become increasingly interested in the Arctic frontier's vast resource potential.

  • [By Stephan Dube]

    Athabasca's most notable producers:

    Suncor Energy (SU) (Part 1), see article here.Suncor Energy (Part 2), see article here.Athabasca Oil (ATHOF.PK), see article here.Canadian Natural Resources, see article here.Imperial Oil, see article here.Cenovus Energy (CVE), see article here.MEG Energy (MEGEF.PK), see article here.Devon Energy, see article here.Royal Dutch Shell, see article here.Ivanhoe Energy (IVAN), see article here.Nexen (CNOOC) (CEO), see article here.

    An analysis of the current operations of the company will be examined with the objective to provide the most complete information available to potential investors before deciding to seize the opportunity that the 54,132 square miles of the Carbonate Triangle has to offer. Let's start by introducing Athabasca, a famous and most prolific region in the Canadian oil sands as well as one of the largest reserve in the world.

  • [By WWW.MARKETWATCH.COM]

    LOS ANGELES (MarketWatch) -- Hong Kong stocks inched lower early Friday, with mainland Chinese banks and energy shares among the weak spots. The Hang Seng Index (HK:HSI) lost 0.1% to 22,824.44, with the Hang Seng China Enterprises Index down 0.4%, even as the Shanghai Composite (CN:SHCOMP) rose 0.1%. Concerns about the fiscal health of the top mainland lenders loomed again over the shares, with Bank of China Ltd. (HK:3988) (BACHY) down 0.9%, Bank of Communications Co. (HK:3328) (BKFCF) 1.3% lower, and China Construction Bank Corp. (HK:939) (CICHF) off 0.7%. In the energy sector, Cnooc Ltd. (HK:883) (CEO) gave up 0.9% after posting a 17% gain in third-quarter revenue but not reporting its profit for the period. Its peers also lost ground, as China Petroleum & Chemical Corp. (HK:386) (SNP) and PetroChina Co. (HK:857) (PTR) fell 1% apiece. On the upside, China Unicom Hong Kong Ltd. (HK:762) (CHU) added 1.6% after announcing a gain of more than 50% for its quarterly profit compared to a year earlier. Rival China Mobile Ltd. (HK:941

Best China Stocks To Buy For 2014: Arotech Corporation(ARTX)

Arotech Corporation, together with its subsidiaries, provides defense and security products. It operates in three divisions: Training and Simulation, Battery and Power Systems, and Armor. The Training and Simulation division develops, manufactures, and markets multimedia and interactive digital solutions for use-of-force training and driving training of military, law enforcement, security, and other personnel; provides simulators, systems engineering, and software products to the United States military, government, and private industry; and offers specialized use of force training for police, security personnel, and the military. The Battery and Power Systems division manufactures and sells lithium and zinc-air batteries for defense and security products and other military applications; and develops and sells rechargeable and primary lithium batteries and smart chargers to the military and to private defense industry. This division also develops, manufactures, and markets primary zinc-air batteries, rechargeable batteries, and battery chargers for the military; and produces water-activated lifejacket lights for commercial aviation and marine applications. The Armor Division manufactures military and paramilitary armored vehicles, and employs sophisticated lightweight materials to produce aviation armor; and uses engineering concepts to produce combat armored military vehicles and up-armor civilian commercial vehicles. This division also uses lightweight armoring materials and advanced engineering processes to provide ballistic armor kits for rotary and fixed wing aircraft. Arotech sells its products primarily in the United States, Israel, Taiwan, Canada, England, Germany, Australia, China, Hong Kong, Mexico, India, Spain, Singapore, and Japan. The company was formerly known as Electric Fuel Corporation and changed its name to Arotech Corporation in September 2003. Arotech Corporation was founded in 1990 and is based in Ann Arbor, Michigan.

Advisors' Opinion:
  • [By Ant贸nio Costa]

    Arotech Corporation (NASDAQ: ARTX) is looking to get back over $2 based on the chart above. After days of trading sideways in a relatively narrow range, this stock is finally on the move again. The volume is starting to pick up and there could be a decent short squeeze (short float 15%) if the stock breaks above this range. Resistance levels to watch will be 1.98, 2.24 and 2.71 with support levels at 1.83 and 1.66. The technical indicators paint a BULLISH picture. The stock is rising above all major EMAs. The MACD has just entered the positive zone and above the signal line. The Slow stochastic and the RSI are both above their 50% levels. Next week will be for sure a key week for ARTX technically !!! Be prepared for a Big run !!! Stay invested w/ a stop-loss at 1.66 ( click to enlarge )

  • [By Bryan Murphy]

    For those traders who were lucky and smart enough to be in an Arotech Corporation (NASDAQ:ARTX) before today, then congratulations - you're up at least 38% on your position. Now it's time to get out. Conversely, if you're looking for a new name to get into (or perhaps looking for a place to park your ARTX proceeds), then you may want to consider Pazoo Inc. (OTCBB:PZOO)... a tiny online retailer of health and fitness goods. PZOO has dropped several tell-tale hints that more upside is on the way.

  • [By Roberto Pedone]

    One stock that's quickly moving within range of triggering a big breakout trade is Arotech (ARTX), which is a defense and security products and services company. This stock is off to a booming start in 2013, with shares up big by 82%.

    If you take a look at the chart for Arotech, you'll notice that this stock has just started to trend back above its 50-day moving average of $1.86 a share with strong upside volume. Volume so far today has already registered over 600,000 shares, which is well above its three-month average action of 226,678 shares. This spike back above the 50-day is starting to push shares of ARTX within range of triggering a big breakout trade.

    Traders should now look for long-biased trades in ARTX if it manages to break out above some near-term overhead resistance levels at $1.97 to $2.24 a share with high volume. Look for a sustained move or close above those levels with volume that hits near or above its three-month average action of 226,678 shares. If that breakout hits soon, then ARTX will set up to re-test or possibly take out its 52-week high at $2.71 a share. Any high-volume move above $2.71 will then give ARTX a chance to trend north of $3 a share.

    Traders can look to buy ARTX off any weakness to anticipate that breakout and simply use a stop that sits right below some key near-term support at $1.74 a share. One can also buy ARTX off strength once it takes out those breakout levels with volume and then simply use a stop that sits a comfortable percentage from your entry point.

Best China Stocks To Buy For 2014: Clean Diesel Technologies Inc.(CDTI)

Clean Diesel Technologies, Inc. engages in the manufacture and distribution of emissions control systems and products for heavy duty diesel and light duty vehicle markets. The company operates in two divisions, Heavy Duty Diesel Systems and Catalyst. The Heavy Duty Diesel Systems division designs and manufactures verified exhaust emissions control solutions that are used to reduce exhaust emissions created by on-road, off-road, and stationary diesel and alternative fuel engines, including propane and natural gas. Its products include closed crankcase ventilation systems, diesel oxidation catalysts, diesel particulate filters, Platinum Plus fuel-borne catalysts, ARIS selective catalytic reduction reagents, catalyzed wire mesh diesel particulate filters, alternative fuel products, and exhaust accessories. This division offers its products for original equipment manufacturers of heavy duty diesel equipment, such as mining equipment, vehicles, generator sets, and construction equipment, as well as retrofit customers consisting of school districts, municipalities, and other fleet operators. The Catalyst division produces catalyst formulations using its proprietary MPC technology for gasoline, diesel, and natural gas induced emissions. Its products comprise catalysts for gasoline engines, diesel engines, and energy applications. This division supplies its catalysts to automotive manufacturers and large heavy duty diesel engine manufacturers. The company sells its products through a network of distributors and dealers, and its direct sales force worldwide. Clean Diesel Technologies, Inc. is based in Ventura, California.

Advisors' Opinion:
  • [By CRWE]

    Clean Diesel Technologies, Inc. (Nasdaq:CDTI), a cleantech emissions control company, will be a presenter at the 3rd Annual Craig-Hallum Capital Group Alpha Select Conference. The presentation is scheduled for 2:10 p.m. ET on Thursday, September 27, 2012 at the Sentry Centers in New York.

Best China Stocks To Buy For 2014: Euro/Yen(EJ)

E-House (China) Holdings Limited, through its subsidiaries, operates as a real estate services company in China. It provides primary real estate agency services, secondary real estate brokerage services, real estate information and consulting services, real estate advertising services, real estate promotional event services, real estate online services, and real estate investment fund management services. The company offers primary real estate agency services to real estate developers. Its secondary real estate brokerage services include offering advisory services on choices of properties; accompanying potential buyers on house viewing trips; drafting purchase contracts; negotiating price and other terms; and providing preliminary proof of title, as well as coordinating with the notary, the bank, and the title transfer agency. The company also provides real estate information services comprising data subscription services and data integration services; and real estate cons ulting services, including land acquisition consulting, development consulting, marketing consulting, and comprehensive solution consulting. In addition, it offers real estate advertising services consisting of advertising design and sales in print and other media; and real estate promotional event services, including securing venues, hiring caters and other various service providers, formulating event themes, and inviting speakers and guests for real estate promotional events. Further, the company provides real estate online services, including real estate news, information, property data, and access to online communities to real estate consumers and participants through local Web sites; and involves in real estate investment fund management activities that consist of investments in China?s real estate sector. E-House (China) Holdings Limited was founded in 2000 and is headquartered in Shanghai, the People?s Republic of China.

Advisors' Opinion:
  • [By Jake L'Ecuyer]

    Shares of E-House (China) Holdings (NYSE: EJ) got a boost, shooting up 7.63 percent to $10.78 after the company reported Q3 results.

    SINA (NASDAQ: SINA) was also up, gaining 12.98 percent to $85.76 after the company reported a strong rise in its Q3 profit.

Tuesday, November 19, 2013

Where's the Yelp for financial advisers?

ask the expert 092513

Before you start your search, you should figure out why you want to hire an adviser in the first place.

NEW YORK (CNNMoney) How do I find and research a financial adviser? --Liz, Philadelphia, Pa.

Finding a financial adviser who you feel comfortable sharing your financial secrets and investments with can be a daunting task. And unlike finding a good restaurant or even a new car, there isn't really one central website where you can go for information and reviews.

Ultimate Guide to Retirement Getting started401(k)s & company plansInvestingAnnuitiesIRAsSelf-employment plansPensions and benefit plansSocial SecurityInsuranceEstate planningLiving in retirementGetting help

But that doesn't mean you're out of luck. There are a variety of ways to find and research the best financial adviser for you.

Before you start searching, determine why you want an adviser in the first place, said Geoffrey Brown, CEO of the National Association of Personal Financial Advisors, a professional group for fee-only advisers.

Are you just getting married? Trying to tackle student loan or credit card debt? Planning for retirement? Saving for your kids' college? While many financial advisers can help with all of these issues, you will likely want to find a specialist in the area most important to you.

Once you have your priorities ironed out, start putting together a list of potential advisers. NAPFA has a database where you can search for advisers by area and specialty. So does the CFP Board, a nonprofit organization that sets standards for certified financial planners.

And don't be afraid to ask friends or family. Word-of-mouth recommendations can be a great way to find an adviser, just be sure to do your own due diligence.

For example, you'll want to look for the CFP distinction, which means that the adviser has undergone training and testing and agreed to follow a set of ethical standards, Brown said.

What are your financial goals in 2013?   What are your financial goals in 2013?

"It is sort of the industry standard for financial planners," he said.

Also research advisers' backgrounds, including any disciplinary actions against them, at the CFB Board's website and the Securities and Exchange Commission's investment adviser database.

There are also sites like WalletHub.com, a new tool that aims to host consumer reviews of financial advisers, though it's been slow to catch on. And even Yelp has reviews on some financial advis! ers, especially in large cities.

Ultimately, you should still interview a handful of advisers over the phone and at least two in person to help you make a final decision.

Ask about their compensation structure (some advisers are paid purely in client fees, while others may earn commissions based on products they sell you) as well as things like what they specialize in and where and how often you would meet.

"When you think of the amount of work we do to buy a car or plan a vacation," said Eleanor Blayney, consumer advocate at the CFP Board, "it's really worth making sure you have the chemistry and that you totally understand the terms of the relationship." To top of page

Monday, November 18, 2013

11 Dividend Stocks Growing Their Dividend

Dividend sustainability is paramount for the high-yield investor. Having a stock cut its dividend could potentially crush its income. A high-yield investor is less concerned about dividend growth than maintaining the current high yield. Most traditional dividend growth stocks pay a moderate to low yield, thus sustainability is not enough. The dividend growth investor also expects substantial and consistent growth.

Below are several companies not only sustaining their dividends, but growing them:

YUM! Brands Inc. (YUM) operates quick service restaurants in the United States and internationally. September 19th the company increased its quarterly dividend 10% to $0.37 per share. The dividend is payable November 1, 2013 to shareholders of record at the close of business on October 11, 2013. The yield based on the new payout is 2.1%.

Texas Instruments Inc. (TXN) engages in the design, manufacture, sale of semiconductors to electronics designers and manufacturers worldwide. September 19th the company increased its quarterly dividend 7% to $0.30 per share. The dividend is payable November 18, 2013, to stockholders of record on October 31, 2013. The yield based on the new payout is 3.9%.

W. P. Carey Inc. (WPC) is an independent equity real estate investment trust. The firm also provides long-term sale-leaseback and build-to-suit financing for companies. September 19th the company increased its quarterly dividend 2.4% to $0.86 per share. The dividend is payable October 15, 2013 to stockholders of record as of September 30, 2013. The yield based on the new payout is 5.2%.

IDACORP Inc. (IDA) Idaho Power Company, engages in the generation, transmission, distribution, sale, and purchase of electric energy in the United States. Sept. 19, the company increased its quarterly dividend 13.2% to $0.43 per share. The dividend is payable Dec. 2, 2013 to IDACORP shareholders of record on Nov. 6, 2013. The yield based on the new payout is 3.6%.

The First of Long Island Corporation (FLIC)! operates as a bank holding company for The First National Bank of Long Island that provides financial services. Sept. 19, the company increased its quarterly dividend 4% to $0.26 per share. The dividend is payable Oct. 11, 2013 to shareholders of record on October 3, 2013. The yield based on the new payout is 2.7%.

McDonald's Corporation (MCD) franchises and operates McDonald's restaurants in the United States, Europe, the Asia/Pacific, the Middle East, Africa, Canada and Latin America. Sept. 18, the company increased its quarterly dividend 5% to $0.81 per share. The dividend is payable Dec. 16, 2013, to shareholders of record at the close of business on Dec. 2, 2013. The yield based on the new payout is 3.3%.

Scholastic Corporation (SCHL) operates as a children's publishing, education, and media company in the United States and internationally. Sept. 18, the company increased its dividend 20% to $0.15 per share. The dividend is payable Dec. 16, 2013 to all shareholders of record as of the close of business on Oct. 31, 2013. The yield based on the new payout is 2.0%.

Microsoft Corporation (MSFT) develops, licenses, and supports software, services, and hardware devices worldwide. September 17th the company increased its quarterly dividend 22.7% to $0.28 per share. The dividend is payable Dec. 12, 2013, to shareholders of record on Nov. 21, 2013. The ex-dividend date will be Nov. 19, 2013. The yield based on the new payout is 3.4%.

Air Industries Group Inc. (AIRI), an aerospace and defense company, designs and manufactures structural parts and assemblies that focus on flight safety. Sept. 17, the company increased its quarterly dividend 100% to $0.125 per share. The dividend is is payable Oct. 15, 2013 to shareholders of record as of the close of business on Sept. 30, 2013. The yield based on the new payout is 6.9%.

Artesian Resources Corporation (ARTNA) provides water, wastewater, and other services on the Delmarva Peninsula. Sept. 17, the company increased its quarterl! y dividen! d 1.5% to $0.2088. The dividend is payable Nov. 22, 2013 to shareholders of record at the close of business on Nov. 8, 2013. The yield based on the new payout is 3.8%.

Host Hotels & Resorts Inc. (HST) is a publicly owned real estate investment trust (REIT). The firm primarily engages in the ownership and operation of hotel properties. Sept. 16, the company increased its quarterly dividend 9.1% to $0.12 per share. The dividend is payable on Oct. 15, 2013, to stockholders of record on Sept. 30, 2013. The yield based on the new payout is 2.6%.

Selecting stocks with increasing dividends is critical for an income growth strategy. The above list contains stocks that recently raised their dividends; it is not a list of recommend buys. As always, due diligence should be performed before buying or selling any stock. For a list of stocks with a long string of consecutive cash dividend increases, see this list.

Full Disclosure: Long MCD, MSFT in my Dividend Growth Stock portfolio. See a list of all my dividend growth holdings here.

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Saturday, November 16, 2013

Jim Cramer's 'Mad Money' Recap: Retail Earnings Ahead

Search Jim Cramer's "Mad Money" trading recommendations using our exclusive "Mad Money" Stock Screener.

NEW YORK (TheStreet) -- With the markets completing their sixth week in rally mode, Jim Cramer told his "Mad Money" TV show viewers Friday that next week's earnings will set the tone for the rest of the year as many retailers will provide their last update before the holiday shopping season begins.

But before retail kicks into high gear, Cramer said he'll be watching the Salesforce.com (CRM) DreamForce conference for all the latest from the tech sector and all the best the cloud has to offer.

Tuesday brings earnings from Best Buy (BBY), Home Depot (HD) and Dick's Sporting Goods (DKS). Cramer said that he still likes both Best Buy and Home Depot but that Dick's has been a bit of a downer recently. Next on Wednesday, it's JCPenney (JCP), Staples (SPLS) and Williams-Sonoma (WSM) in the spotlight, along with John Deere (DE) and ADT (ADT). Cramer said that both Deere and ADT have been disappointing, and he's still not a fan of JCPenney. He was more upbeat on Staples however, and said Williams-Sonoma will likely fall on its earnings, only to bounce right back as it often does. Then on Thursday, it's more retailers with Abercrombie & Fitch (ANF), Dollar Tree (DLTR), GameStop (GME) and Target (TGT). Cramer was bullish on Dollar Tree and GameStop, but did not expect any good news from either Abercrombie or Target. Finally on Friday, Cramer said he'll be watching Foot Locker (FL), which will tell him whether to buy Nike (NKE), and Ann Taylor (ANN), a stock that reminds him that women's apparel is too hard a segment to judge. Last but not least is Petsmart (PETM), a stock that's up only 8% on the year, but should be picking up steam. Executive Decision: George John In the "Executive Decision" segment, Cramer spoke with George John, CEO of Rocket Fuel (FUEL), the programmatic advertising platform that allows companies to place ads in real time. Rocket Fuel had a stellar IPO this past September, rising 93% on its first day of trading. But shares fell to a low of $37 a share in early November before rebounding sharply on its 132% increase in revenues this quarter.

John said that programmatic ad buying allows for a better experience for everyone. He said advertisers get to pick the exact time and placements for all their ads, while users get more relevant ads and developers can more easily monetize their apps. John also noted that brand advertising also works well with programmatic buying, as companies can drive results to the goals they're trying to achieve.

When asked about the competition from behemoth Google (GOOG), John said that Rocket Fuel has been competing against Google since day one and has seen incredible growth even with Google continuing to dominate the market for online ads. John noted that mobile, social and video now account for a quarter of Rocket Fuel's revenues.

Cramer said that Rocket Fuel's revenue growth has been astounding, and the company's conference call and investor materials are very informative for any investor who wants to learn why programmatic ad buying online is the future. Executive Decision: Jack Hartung

For his second "Executive Decision" segment, Cramer spoke with Jack Hartung, CFO of Chipotle Mexican Grill (CMG), a stock that's up 84% for the year and 45% since Cramer last checked in with Hartung in July. Hartung started off by commenting on food prices. He said that Chipotle has always had high food costs given the ingredients they use, but has also always been slow to raise its prices. With prices now at the high end of the range, Hartung said the company will likely consider a price increase in the middle of next year, but will first wait to see how the economy and consumer confidence are doing. Hartung also reiterated what makes Chipotle different from other restaurant chains that have been struggling. He said that customers increasingly want to know where their food comes from, which is why Chipotle takes the time to source the best ingredients and teach the staff how to cook it properly. Chipotle never competes on price, Hartung said, only on quality, where it is second to none. Chipotle is also about great service, which is why Hartung noted that the chain keeps its best people online during the lunch and dinner rush and would never interrupt the throughput by trying to train new employees during those hectic times. He said that complexity, whether via staffing or a bloated menu, only slows things down and creates bad economics.

Finally, Hartung provided an update on European sales, which are following the same sales trends as the U.S. in its early days, and also on Shophouse, the company's Asian kitchen concept, which has five locations and is doing well.

Cramer said that while he's not sure where Chipotle will be trading in the short term, over the next few years, the stock's direction is crystal clear. Lightning Round

In the Lightning Round, Cramer was bullish on Radian Group (RDN), Genworth Financial (GNW), Quiksilver (ZQK), G-III Apparel Group (GIII), Sony (SNE), Dominion Resources (D) and Foundation Medicine (FMI).

Cramer was bearish on Maxim Integrated Products (MXIM), National Bank of Greece (NBG) and NV Energy (NVE). Homework In his "Homework" segment, Cramer followed up on a handful of stocks that stumped him during earlier shows. He said that Abaxis (ABAX) is far from a great stock and he'd stay away from that one, but he was more bullish on Pitney Bowes (PBI), after the company announced a new partnership with eBay (EBAY). Cramer said he wasn't a fan of BJ's Restaurants (BJRI), as the company has hit several speed bumps in its regional-to-national rollout, but he did like NCR (NCR), the old-school tech giant that's moving away from hardware, like ATM machines, and into more lucrative software products. Cramer also responded to questions sent via Twitter to @JimCramer. He said to steer clear of Alcoa (AA), as there's still a huge glut of aluminum in the world, but he remained a big fan of CVS Caremark (CVS), which continues to have great earnings. No Huddle Offense In his "No Huddle Offense" segment, Cramer opined on the news that Facebook (FB) offered $3 billion to buy the social photo app SnapChat. Would Facebook have been dramatically overpaying for another fad like OMGpop? Cramer said that depends. In the race to win the mobile, social and cloud space, Cramer said it's worth paying $3 billion just to keep a service like SnapChat out of the hands of the other guy. Just imagine if Apple (AAPL) had made a preemptive bid for Twitter (TWTR), Cramer pondered. Yes, the thought of 20-something founders spurning a $3 billion offer reminds us all of the dot-com bubble, but in today's Internet race, companies can't afford to ignore the next hot thing, which SnapChat represents.

To watch replays of Cramer's video segments, visit the Mad Money page on CNBC.

To sign up for Jim Cramer's free Booyah! newsletter with all of his latest articles and videos please click here.

-- Written by Scott Rutt in Washington, D.C.

To email Scott about this article, click here: Scott Rutt Follow Scott on Twitter @ScottRutt or get updates on Facebook, ScottRuttDC

At the time of publication, Cramer's Action Alerts PLUS was long AAPL and FB. Jim Cramer, host of the CNBC television program "Mad Money," is a Markets Commentator for TheStreet.com, Inc., and CNBC, and a director and co-founder of TheStreet.com. All opinions expressed by Mr. Cramer on "Mad Money" are his own and do not reflect the opinions of TheStreet.com or its affiliates, or CNBC, NBC Universal or their parent company or affiliates. Mr. Cramer's opinions are based upon information he considers to be reliable, but neither TheStreet.com, nor CNBC, nor either of their affiliates and/or subsidiaries warrant its completeness or accuracy, and it should not be relied upon as such. Mr. Cramer's statements are based on his opinions at the time statements are made, and are subject to change without notice. No part of Mr. Cramer's compensation from CNBC or TheStreet.com is related to the specific opinions expressed by him on "Mad Money." None of the information contained in "Mad Money" constitutes a recommendation by Mr. Cramer, TheStreet.com or CNBC that any particular security, portfolio of securities, transaction, or investment strategy is suitable for any specific person. You must make your own independent decisions regarding any security, portfolio of securities, transaction, or investment strategy mentioned on the program. Mr. Cramer's past results are not necessarily indicative of future performance. Neither Mr. Cramer, nor TheStreet.com, nor CNBC guarantees any specific outcome or profit, and you should be aware of the real risk of loss in following any strategy or investments discussed on the program. The strategy or investments discussed may fluctuate in price or value and you may get back less than you invested. Before acting on any information contained in the program, you should consider whether it is suitable for your particular circumstances and strongly consider seeking advice from your own financial or investment adviser. Some of the stocks mentioned by Mr. Cramer on "Mad Money" are held in Mr. Cramer's Action Alerts PLUS Portfolio. When that is the case, appropriate disclosure is made on the program and in the "Mad Money" recap available on TheStreet.com. The Action Alerts PLUS Portfolio contains all of Mr. Cramer's personal investments in publicly-traded equity securities only, and does not include any mutual fund holdings or other institutionally managed assets, private equity investments, or his holdings in TheStreet.com, Inc. Since March 2005, the Action Alerts PLUS Portfolio has been held by a Trust, the realized profits from which have been pledged to charity. Mr. Cramer retains full investment discretion with respect to all securities contained in the Trust. Mr. Cramer is subject to certain trading restrictions, and must hold all securities in the Action Alerts PLUS Portfolio for at least one month, and is not permitted to buy or sell any security he has spoken about on television or on his radio program for five days following the broadcast.

Wednesday, November 13, 2013

CNBC: Whistleblowers cite hazards at VA centers

At the height of the American people's discontent and frustration with what seemed to be endless wars in Iraq and Afghanistan, another bombshell dropped.

The very people who were making the ultimate sacrifice to fight for our freedoms were being neglected when they needed us most.

A 2007 Washington Post investigation into the lack of care at Walter Reed Army Medical Center caused outrage.

The expose began like this:

"Behind the door of Army Spec. Jeremy Duncan's room, part of the wall is torn and hangs in the air, weighted down with black mold."

More recently, CNBC obtained images of another pocket of black mold invading another VA medical center. A Pittsburgh Veterans Administration employee and whistleblower says the black mold is in an air handler located in a nuclear medicine area where cancer patients get therapy.

DEATH & DISHONOR: Crisis at the VA -- a CNBC investigation

Black mold, though, is not the worst of it.

Our investigation began at that Pittsburgh VA hospital where at least five veterans died following a Legionnaire's outbreak in 2011 due to, according to the Office of the Inspector General, systemic failures at the Veterans Administration.

Legionella is a bacteria found in water that could result in Legionnaire's disease which is curable through antibiotics. It could prove fatal, though, if untreated. And it did for at least half a dozen veterans.

We visited that VA two years after the outbreak and found open sewer pits from which cockroaches and other bugs crawl out of -- adjacent to the radiation therapy room where patients with compromised immune systems get treatment.

A Pittsburgh VA employee also confirmed that construction projects are still going on above, below, and adjacent to operating rooms where kidney, liver, and heart transplants, among other procedures, are being performed.

Our whistleblower told us that the facility was plagued with problems, like crumbling infrastructure, leaking pipes, and mold ! — all of which we witnessed ourselves.

The VA told us that it is committed to providing Veterans the best care anywhere and our goal is to provide that care in a safe environment. VA Pittsburgh takes this issue very seriously, and continues to take steps to improve the care provided here.

The VA Hospital in Jackson, Miss., also has its share of whistleblowers -- the most of any facility to date.

One of them is Dr. Phyllis Hollenbeck, who still works there. At a Congressional hearing in September she said:

"Essentially everything that happens in primary care at the Jackson VA can be included under the umbrella of being unethical, illegal, heartbreaking and life threatening for the veterans, and everything in the care of the veterans starts in primary care."

Hollenbeck's claims are substantiated by an independent federal watchdog called the Office of Special Counsel -- or OSC -- which has raised concerns about unsanitary conditions, understaffing and the illegal prescribing of narcotics by nurse practitioners, among other things, at the Jackson VA.

We spoke with several former surgeons at that VA who told us that finding other patients' bones, blood and tissue in surgical instruments was a common occurrence.

The VA told us that it has invested more than a million dollars into state-of-the-art reprocessing equipment at the Jackson hospital to ensure proper cleaning and sterilization, and has transitioned to the use of more disposable devices when those are available. After receiving the March 18 letter, VA initiated a quality of care review of the sterile processing services at the facility. The review found that the VA now utilizes effective systemic processes to safely perform the re-processing of all critical and semi-critical reusable medical equipment in the facility.

C.J. Stewart, a Purple Heart recipient who was critically injured in Afghanistan, has had 40 surgeries at Walter Reed Army Medical Center, which he said, provided great care.

But! now that! he is medically retired, meaning he seeks treatment outside of the military hospital system, he told us he had to wait over a year to even see a doctor in Jackson.

Vietnam War Veteran Bob Slater says the Jackson VA kept him in the dark for four years about having kidney disease -- which he only found out when he was able to access his medical records online.

Last year, officials at this VA also received tens of thousands of dollars in bonuses.

In Atlanta, an OIG investigation published this year concluded that staff failed to monitor patients at the Atlanta VA facility. Three veterans had committed suicide there, and another suffocated himself in a bathroom at the VA during the Inspector General's investigation.

In Gainesville, Fla., we accompanied a current employee, who is a veteran himself, to a doctor's appointment with hidden cameras. We witnessed extremely long wait times for appointments, especially for those in the emergency room.

The Gainesville VA Medical Center for its part, has moved to improve wait time. It recently concluded a Systems Redesign team to improve flow from the emergency department through the inpatient units. The VA says the outcome was that the team was able to reduce the wait time in the emergency department for psychiatry and medicine admissions.

On one patient care floor, where veterans receive wound care after orthopedic surgery, there was no flooring at all. The floors were stripped leaving them sticky and dirty. The VA Employee who took us around said it had been like that for at least two years.

The Gainesville VA also happens to have the biggest budget and largest patient population of any VA in the country.

By June of this year, they had already spent about 850 million dollars.

Thomas Wisnieski, who became the Network Director of the North Florida/South Georgia Veterans Health System in April 2012, got almost $35,000 in bonuses over the past three years.

Our Gainesville whistleblower also told us that disa! bled vete! rans, including those who are blind, amputees, and patients on dialysis are constantly being denied special mode of transportation---which means no way of even getting to the VA for treatment.

"You could have a veteran that is an amputee, both legs . . . if he or she is not in a wheelchair and the doctor says they're not permanently in a wheelchair, they will not transport that patient," he said.

In August of 2012, the office of the inspector general released a report about the Villages Outpatient Clinic, which is part of the Gainesville VA. The report said primary care, mental health and specialty care were not provided as planned. They also found a lack of oversight and millions in funds spent inefficiently; on things like staff salaries and benefits.

The OIG also released a report this year about the VA in Memphis, Tennessee. The inspection took place after an allegation of inadequate patient care which resulted in patients dying.

The VA said it has addressed the recommendations made by the Inspector General and that the physician involved in the care of two of the patients referenced in the report no longer works there. It also stated that it continues to work in good faith to further improve the quality of care and operational efficiency within our Emergency Department.

The inspector general substantiated that one patient was administered a medication despite a documented drug allergy and had a fatal reaction. Another patient was found unresponsive after being administered multiple sedating drugs, and a third patient had critically high blood pressure but was not monitored---and experienced bleeding in the brain.

Chairman Miller says there are VAs where things seem to work just fine, with great employees who truly care for the veterans.

But he also insists that there are far too many facilities where veterans and their families are neglected:

"Atlanta, Pittsburgh, Buffalo, now Columbia South Carolina, Augusta Georgia, and unfortunately these are not ! just mino! r errors and issues. These are issues that have caused serious harm to patients including death"

CNBC's Dina Gusovsky visited an amputee unit at Walter Reed in 2008. There seemed to have been major changes after the media shed light on issues there, she found. Many people lost their jobs as a result.

In fact, Afghanistan War veteran C.J. Stewart says of the difference between Walter Reed and the Jackson VA:

"I guess the most frustrating part for me is I was at a military hospital where these hiccups did not happen … Here, no one is held accountable . . . there's no consequences for the ones that do mess up."

Contact the authors on Twitter: @CNBCInvestigate and @DinaGusovsky.

© CNBC is a USA TODAY content partner offering financial news and commentary. Its content is produced independently of USA TODAY.

Tuesday, November 12, 2013

Seriously, Should HP Try to Buy Dell?

Hewlett-Packard Co. (NYSE: HPQ) is still in the beginnings of its long-term turnaround under CEO Meg Whitman. Earnings were not so bad, but there is this continued erosion in the core PC and peripherals market and that is acting as a drag. The same is true for Dell Inc. (NASDAQ: DELL), but the difference is that Michael Dell is trying to complete his acquisition of that PC giant. This would be very complicated and almost certainly would garner intense regulatory hurdles and scrutiny, but we think it is becoming a fair question to ask whether Hewlett-Packard should try to merge with arch-rival Dell.

The first thing that you have to consider is that the Department of Justice and many international and foreign regulators would try to fight or outright block this from the start. What is changing now compared to a decade ago is that PC sales trends are starting to look like cigarette sales trends in the 1990s, decline followed by more decline.

The real issue is twofold. Apple Inc. (NASDAQ: AAPL) had been competing for PC sales, but now its iPad tablets have put a major dent into those sales. Ask yourself what Dell and Hewlett-Packard are garnering in the tablet market sales. Ask the same thing about smartphones. Dell and HP are basically at zero on that front.

What happens if two industry giants come together to say that the only way they can survive is to merge? It is a serious issue happening around PC sales, and competitors like Gateway/Acer, Lenovo, Asus and others are adding incresing competition as this becomes a commoditized cycle. HP critics might have to actually say that the Carly Fiorina acquisition of Compaq was not as bad as they always maintained. And you also cannot forget that International Business Machines Corp. (NYSE: IBM) was so tired of competing in PCs that it actually jettisoned its PC business to Lenovo in China.

Another huge hurdle is the environments, which ultimately will consolidate thousands of jobs. The reality is that Dell and HP have been rivals for so long that it is hard to imagine that the cultures could coexist. Management teams might poison the well. That being said, imagine all of the global supply chains that could be consolidated if the two U.S.-based PC giants were suddenly just one. They might even be able to maintain the two different brands for some time.

Lastly, this might leave Microsoft Corp. (NASDAQ: MSFT) and Intel Corp. (NASDAQ: INTC) in a winner-take-all or in a serious lurch. Microsoft is currently a part of the Dell deal in financing, and there has been some speculation that ultimately Microsoft may have a full interest in buying Dell. This is problematic as well, but it has been discussed by financial media.

We are not trying to suggest that Meg Whitman would really try to do this deal. We are not even suggesting that Michael Dell would eat the crow here and admit for a second that it would be the right merger at all. In fact, we think the regulatory bodies would fight the merger so hard that the companies likely would never even get close to a closing date. The problem is that HP and Dell are both facing pressures that may be permanent and that were not present in the 1990s and 2000s.

There is a reason these two companies have valuations that are so paltry. Dell is going to be acquired for about 12 times next year’s earnings estimates while HP’s 13% stock drop after earnings has it valued at a mere six times next year’s expected earnings.

No one believes in these companies having a great future. Maybe something radical like this will make more sense if we are still talking about the same erosions and pressures in 2016 or beyond.

Monday, November 11, 2013

"Insidious Chapter 2" Had Better Thank Netflix

Some sequels are better off left unmade. 

Yes, I'm talking to you, Grown Ups 2. Don't think you're getting a free pass, Speed 2: Cruise Control. If the original entry was critically panned -- cough, cough, Grown Ups -- there's no reason to keep going. If a movie works under the outrageous premise that a bus will blow up if it slows down, there's no need to whisk Sandra Bullock onto a cruise ship for a sequel to Speed.

This brings us to Insidious Chapter 2. The followup to 2011's Insidious hits a multiplex near you next weekend, and it certainly wasn't the kind of box-office smash that would send studios scrambling for a sequel. The supernatural horror flick about a family coping with a demon-possessed son took in just a little more than $54 million in its domestic theatrical run. 

However, the movie has been well reviewed. Netflix (NASDAQ: NFLX  ) users have bestowed it a rating of 3.7 stars out of five, and that's a pretty good rating on the leading video service. The movie was available for streaming on Netflix until this past May, when a licensing deal ran out, and its success there probably played a major part in the decision to for FilmDistrict to go ahead with a sequel. 

Nearly 1.8 million Netflix subscribers have rated the movie. That's huge for a movie that was seen by fewer than 7 million moviegoers when it was playing on the big screen (dividing $54 million in box office receipts by the average ticket price in 2011 of $7.93). We've seen Netflix build an audience for TV shows including Mad Men and, more recently, Breaking Bad. But now we have a good example of Netflix streaming as an asset to a theatrical franchise if the sequel manages to beat out the original. 

Source: FilmDistrict.

It also helps that supernatural movies have been storming back to life this year. Time Warner's (NYSE: TWX  ) The Conjuring has raked in more than $134 million in ticket sales this summer. That's not too shabby for a movie with a $20 million production budget. Mama's $71 million take earlier this year wasn't as impressive, but it still fared better than Insidious.

Let's hope that the producers of Insidious Chapter 2 keep this all in mind as the next few weeks play out. Thanking Netflix -- and The Conjuring -- won't happen. The Netflix licensing deal went away four months ago. Time Warner's creepy movie is the competition. However, it would be the right thing to do.

"It will take what you love most," is the film's tag line, but it's those two factors that helped bring it back.

If you want to see something really scary, check out the price of oil these days
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Sunday, November 10, 2013

Verizon-Vodafone $130B Deal Signals Mounting Consolidation And Competition

Vodafone Vodafone has sealed a $130 billion deal with Verizon Communications Verizon Communications that will see the British telecom sell its stake in the wireless business jointly owned by the two companies, the culmination of talks stretching back years and the latest shift this year within the rapidly changing and consolidating telecom industry.

Assuming full ownership will give Verizon complete access to the wireless unit's profits, a windfall that'll allow it to build new mobile networks and contend with an increasingly competitive landscape. For sure, connecting smartphones and tablets to the Web is immensely profitable. Verizon Wireless, the largest U.S. cell phone service provider with 98.9 million subscribers, compared with No. 2 AT&T AT&T's 77.9 million, made $21.8 billon on $75.9 billion in revenue last year. More to the point, it is a growing opportunity for Verizon, while its older landline business continues to decline.

For Vodafone, the sale is a way to reward long-suffering shareholders who watched the company's market capitalization shrink in the 14 years since Vodafone and Verizon hooked up to create the wireless unit. Vodafone investors will get 71% of the proceeds, some $84 billion, of the sale's profit in cash and stock.

While the marriage between Vodafone and Verizon appeared bright at first, relations dimmed quickly. Disputes occurred over who would eventually take full control and the rich dividends payed out by the wireless unit. The two parties had come to the negotiating table before today, but couldn't settle on terms. Another complicating matter was the potential tax hit that Vodafone would take on the sale.

Looking ahead, Vodafone may look around to see where it can expand–and what it needs to shore up. Vodafone's European business faces a tough environment amid recession and increased regulation. It does plan to use some of its newly full warchest to launch what it's calling Project Spring, a campaign to improve networks in Europe and in emerging markets.

At the same time, the deal comes at a crucial moment for Verizon. Interest rates are rising, and Verizon's stock in the past 12 months hasn't kept pace with the broader market. It might've seemed now or never to ink the deal. In addition, competition is likely to reach new highs: Japanese SoftBank a few months ago beat Dish Network in the takeover battle for the third largest U.S. carrier Sprint, and T-Mobile and Metro PCS have merged. Getting together or selling out represents the best chance for many of the smaller carriers to compete with their bigger rivals.

Completing the deal with Verizon will again Vodafone a place in history books. Vodafone has now orchestrated two of the largest M&A deals ever: its takeover of German Mannesmann in 2000 was the largest ever at $202.8 billion, which edges ahead of what's known as the worst deal in history, the $181.6 billion merger of AOL AOL and Time Warner. The sale of Verizon Wireless ranks as the third.

Reach Abram Brown at abrown@forbes.com.

Saturday, November 9, 2013

AstraZeneca Goes Back To The M&A Well Yet Again

AstraZeneca (NYSE:AZN) CEO Pascal Soriot is pulling out all the stops, and repeatedly pulling out the checkbook, to rebuild the future prospects of this lagging Big Pharma company. Having spent nearly $1 billion on Omthera and Pearl Therapeutics earlier this year, AstraZeneca has announced yet another deal – this time a potentially $500 million deal for an early-stage company in the hot oncology immunotherapy space.

SEE: Will Immunotherapy Disrupt The Oncology Market?

The Deal
AstraZeneca announced Monday morning that it had reached an agreement to acquire privately-held Amplimmune for up to $500 million in cash. AstraZeneca will be paying $225 million upfront, with another $275 million tied to predetermined (but undisclosed) milestones. While AstraZeneca is in a net debt position (as of the last quarter), the company had over $8 billion in cash on the balance sheet, and this deal will not represent any meaningful change in the company's liquidity.

What AstraZeneca Is Buying
AstraZeneca already had some underappreciated assets in the oncology immunotherapy space, with a collection of checkpoint agents including an anti-OX40 monoclonal antibody. That said, this deal certainly adds to the company's early-stage portfolio of assets.

Amplimmune is readying an IND filing for AMP-514, a pre-clinical PD-1 antibody that could target the same multi-billion dollar markets as more advanced PD-1 therapies from Bristol-Myers Squibb (NYSE:BMY), Merck (NYSE:MRK), and Roche (Nasdaq:RHHBY). In addition, the company has numerous pre-clinical molecules targeting the B7 family of proteins – a group that interacts significantly with PD-1 in immune responses to cancer.

It's also noteworthy that this is hardly the first outside affirmation of Amplimmune's approach. Amplimmune and Glaxo (NYSE:GSK) signed a partnership agreement almost three years ago for PD-1 fusion proteins, including AMP-224. While this agreement included an upfront payment of $23 million, the total potential value of the deal was announced at $508 million (assuming all milestones were hit) and still granted double-digit royalties to Amplimmune.

Amplimmune also has an agreement with Daiichi Sankyo for an autoimmune application (AMP-110) of the company's technology, in a $50 million deal announced earlier this year.

SEE: What Makes An M&A Deal Work?

Grabbing Acreage In An Increasingly Attractive Landscape
Given where Amplimmune's technology is in the clinic, it's going to be several years before AstraZeneca has any real indication as to whether this deal was a good use of cash. As it stands today, though, it's a worthwhile deal for a company that needs to improve its pipeline and prospects at nearly every stage of development and in every disease state.

Although skeptics may well wonder just how many multi-billion dollar drugs targeting PD-1 (or PD-L1) there can be, I believe it would be a mistake to look at this deal just in terms of its standalone potential. AstraZeneca will almost certainly look to combine Amplimmune's technology and products with existing immunotherapy approaches in its own pipeline with an eye towards even more effective combination therapies.

The Bottom Line
I am a little curious as to why Amplimmune didn't consider going the IPO route, as the biotech market has been red-hot recently. Perhaps the company was worried that the window of opportunity would close too quickly and/or that the AstraZeneca deal offered a certain payout. In any case, I think AstraZeneca has acquired some very interesting early-stage compounds and a platform technology approach that could ultimately produce some billion-dollar oncology drugs. While this doesn't help AstraZeneca's near-term growth deficit even slightly, it does improve the odds that AstraZeneca will be a much more interesting company around 2020.

Disclosure – At the time of writing, the author owned shares of Roche.



Friday, November 8, 2013

Ask an Expert: Empower your employees

Q: I was wondering if you had any tips on how our business could be more entrepreneurial? We have been around for a long time, have about 25 employees, and so we are well past that creative, startup phase. -- Trisha

A: When you empower employees to think and act entrepreneurially, it is called "intrapreneurship." It might be an employee who comes up with a great idea or a staffer who heads a project that he or she came up with. Either way, it's internal entrepreneurship, or intrapreneurship. Intrapreneurship is win-win: It gets staff motivated and involved, and does so for the benefit of your business.

According to Gifford Pinchot, who first made the term intrapreneurship popular in his 1985 book, Intrapreneuring, "Look back at any great business or invention at just about any big company and you can find that intrapreneurs created it."

EDMUNDS: Try placing trust in your staff

When businesses set up an intrapreneurial environment, an environment that encourages risk-taking and innovation, the business benefits in very tangible ways. For starters, they will likely see a rise in the reliability, happiness, diligence, and productivity of their employees. Businesses have also found that encouraging intrapreneurship helps to attract and retain top talent. Also, when employees can act creatively and explore their best ideas, they experience higher levels of job satisfaction. Ultimately then, intrapreneurship increases employee retention rates, boosts productivity, and fosters an exceptional culture.

Richard Branson says that when Virgin began its mobile phone division, they were new to the niche, and so to get up to speed quickly, they hired top managers from rival companies and gave them the freedom to set up internal ventures of their own. This intrapreneurial process resulted in innovative thinking and a very profitable new business. In Entrepreneur Magazine, Branson writes, "What if CEO stood for 'chief enabling officer'? What if that CEO's primary role were to nurture a bree! d of intrapreneurs who would grow into tomorrow's entrepreneurs?"

Steve Jobs once said this: "Innovation has nothing to do with how many R&D dollars you have. When Apple came up with the Mac, IBM was spending at least 100 times more on R&D. It's not about money. It's about the people you have, how you're led, and how much you get it."

So it would behoove the small business owner to take a page out of the book of these pros, "get it," and become more intrapreneurial. Here are a few ways to do so:

1. Give them resources and encourage them: Employees need to know that you value this idea of intrapreneurship enough to support it with more than just talk. Give folks the time and resources necessary to flush out and launch their best ideas.

2. Make failure an option. If you want employees to take risks, you have to encourage risk taking, and that means making it OK for them to make mistakes and fail. Because it is only when failure is an option that employees will be willing to risk their reputation on an idea.

3. Have fun. Anything that can be done in the spirit of fun can reap big rewards. Creative thinking workshops or classes can get employees' juices flowing.

4. Recognize them: Even if it is something as simple as giving a prize for the best idea in a suggestion box, employees should see that their ideas are valued and being acted upon.

5. Reward them financially: Nothing talks like money. Employees who have a financial stake in the business are more conscientious, harder working, and happier. They will also be even more passionate about the project that they have launched and more motivated to ensure it is successful.

If you want your people to act entrepreneurially, then reward them accordingly.

Today's tip: Google gives not only engineers, but also all employees, 20 percent free time to work on projects of their own choosing that can benefit the company.

Here is how the process works: Intrapreneurs at Google are encouraged to discuss ! their ide! as and get creative input from coworkers. Then, after refinement by the crowd, there is a formal review process. A project proposal and timeline is submitted and the intrapreneur must describe how he or she plans to go about evaluating the success of the project. Once an outstanding project has been selected, the project is monitored, analyzed, implemented.

Gmail, AdSense, and Orkut were all started by Intraprenurial Google employees.

Steve Strauss is a lawyer specializing in small business and entrepreneurship. His column appears Mondays. E-mail Steve at: sstrauss@mrallbiz.com. An archive of his columns is here. His website is TheSelfEmployed.

Thursday, November 7, 2013

Disney Drops Ahead of Earnings as Netflix Deal Disappoints

Shares of Disney (DIS) have dropped ahead of the company’s announcement of earnings results after the close.

AP

Disney is expected to announce a profit of 76 cents a share, according to FactSet, but today’s drop doesn’t mean investors are betting that Disney will miss earnings. Instead, it could be as a result of a deal it announced with Netflix (NFLX), which appears to have underwhelmed investors.

The Wall Street Journal has the details on the Disney/Netflix partnership:

Walt Disney Co. and Netflix Inc.  unveiled a deal for multiple original live-action series based on four of Marvel’s most popular characters to be shown exclusively on Netflix’s streaming-video service.

Under the agreement, Marvel will develop four serialized programs—”Daredevil,” “Jessica Jones,” “Iron Fist” and “Luke Cage”—leading to a miniseries programming event for Netflix. Netflix has committed to a minimum of four, 13-episode series and a culminating Marvel’s “The Defenders” miniseries.

Albert Fried & Co’s Richard Tullo says investors were looking for more. He writes:

We think the market expected more from the NFLX Disney announcement, we won’t comment about the deal economics yet, but we think Wall Street expected a big streaming exclusive deal on the Marvel Movies and perhaps a direct to Streaming Deal.

Again something like that could happen at the end of the rainbow but it took Dorothy a long time to know how to use her Ruby slippers and the media sector is full of witches and flying monkeys.

Shares of Disney have fallen 2% to $67.63 at 1:52 p.m., while Netflix is down 2% at $328.94.