Saturday, February 28, 2015

Homemade Thanksgiving gives way to eating out

Shannon Lynch's favorite Thanksgiving dish isn't her mom's mashed potatoes or a family pie recipe passed down through generations. It's the stuffing from Harris Teeter.

"The celery's crunchy. It has a spice or some type of added mixture. It makes your nose happy," the 27 year-old says. "I eat it with mashed potatoes, I eat it with my turkey, we put it on sandwiches. It's just fabulous."

Nine years ago, Lynch's family stopped attempting to pull off a homemade Thanksgiving that usually meant her mother spending the day in the kitchen and missing out on family time.

Instead, Leni Lynch, 64, started pre-ordering everything from the turkey to the gravy to the pumpkin pie from Harris Teeter, a chain of grocery stores throughout the southeast, where a standard turkey dinner with cornbread stuffing, green bean casserole, mashed potatoes, gravy, and cranberry sauce costs $49.99. The pie costs an extra $8.99.

"It's the best decision I ever made," says Leni who lives at Wintergreen ski resort in Wintergreen, Va. "We usually go to the movies and then come home and eat. We never got to do that before. It's just a delightful experience."

On a holiday traditionally recognized as the ultimate celebration of the home and its bounty, Americans are ditching the kitchen and seeking out restaurants and prepared options in order to carve out more family time, reduce stress, or find a better space to host a crowd.

But historically, Thanksgiving is meant to be held at home, with homemade dishes.

"Thanksgiving is an archetypal home festival," says Merry White, author of a cookbook called Cooking for Crowds and a professor of food anthropology at Boston University.

The day was a tradition founded by Abraham Lincoln to unite the country after the Civil War, laying the "basic foundation as the home as where America is," she says. "It's also supposed to represent love and service, service being the arduous activity of serving the meal."

Letting the hospitality industry do the ser! ving "undercuts the nature of this domestic holiday," White says.

Blame it on the 21st century busyness complex. Whether it's an unyielding work schedule, expensive travel, or keeping up with kids' activities, we're finding find it harder to carve out time to prepare an entire Thanksgiving dinner, or just don't want to.

"People are busy with their lives, and people are looking for ways to simplify their lives," says George Michel, CEO of the Boston Market restaurant chain, where Thanksgiving is the busiest day of the year.

The company serves more than 1 million people across all 460 locations on Thanksgiving. More than half of that business is for pick-up orders. Many of the restaurants set up tents and refrigerators outside, where a line of customers starts forming around 9:30 a.m., Michel says.

A turkey dinner for 12, which includes two pies, dinner rolls, and spinach artichoke dip along with the classic turkey and sides, is $94.99. But Boston Market also offers variations including a ham dinner, combo meals, and meals with fewer sides. Diners who eat in the restaurant shell out $10.99 for an individual meal.

The company's Thanksgiving business has increased between 13% and 14% every year since 2010. Throughout the holiday season last year, but primarily on Thanksgiving, that amounted to more than 36,000 turkeys, 10,000 hams and three million pounds of mashed potatoes. And as Black Friday sales have ballooned in recent years, requiring retail workers to cut family time short to be at work, Boston Market has also started catering Thanksgiving dinner for retailers including Best Buy, Walmart, and Target.

"People are stressed for time," Michel says. "The solutions provided by us have become a necessity and I guess a welcome proposition."

In a survey given exclusively to USA TODAY, Boston Market found that more than half of respondents plan to use prepared foods as part of their Thanksgiving meal. Respondents said relying on prepared options makes them feel "effic! ient," "r! elieved," "confident," and "relaxed."

Those interviewed by USA TODAY say the same. Katy Ellis will go the semi-homemade route this year to host her husband's parents and sister. The 24 year-old from Houston is buying most of her dishes, including a pre-brined turkey, from a local grocery store. But she plans to make mashed potatoes and bread herself.

"I love cooking, I just think it's so stressful on Thanksgiving," Ellis says. "It sounds like a lot of fun and then when you actually get down to it, it takes a lot longer than you think and you never have enough space for anything."

Ellis is used to an unconventional Thanksgiving. Her husband Mat, 26, is an oil and gas engineer whose job has kept him away from home on the holiday for the past four years. So she's usually traveled to him. One year that meant dinner at a diner in Anchorage, Alaska. Last year it was steaks at Morton's The Steakhouse in Dallas.

Morton's opened several restaurants for the first time on Thanksgiving last year after observing that competitors like Capital Grille were having success on the holiday. This year about 50 of its 70 U.S.-based restaurants will be open on Thursday.

"We're expecting a really big day," says Scott Crain, vice president of operations, adding that some restaurants are expecting double the number of people as last year.

But steak instead of a Thanksgiving turkey? Morton's doesn't change the menu to accommodate the classic American fare. Even on Thanksgiving, filet mignon is the top seller, Crain says.

Deviating from tradition on a day when the menu seems sacrosanct began long before families started heading to Morton's and Boston Market for dinner. It was in the 1980s, when Americans started installing state-of-the-art appliances, liking ethnic foods and experimenting in the kitchen, White says.

She recalls one year when a friend served lamb shish kabobs for Thanksgiving. "There was such a feeling of transgression," she says. "Everyone felt slightly uncomfortable! . It was ! delicious, but it wasn't Thanksgiving."

Others say unconventional gatherings allow for more family time and new traditions. When Sara Pimental's parents moved from the Minnesota suburb where she grew up to Minneapolis, they didn't have enough room in their condo to host Thanksgiving anymore.

So two years ago, they turned one holiday into a long weekend and rented rooms at the downtown Hilton. They eat Thanksgiving dinner in the hotel restaurant and head to Macy's for Black Friday shopping. This year the group will include Pimental's parents, her husband, and her sister and her sister's boyfriend visiting from New Orleans.

"We just get to spend so much more time with each other and not have to worry about taking care of anything at home," says Pimental, 25.

While eating out on Thanksgiving isn't gaining as much popularity as relying on prepared dishes, it has grown slightly. In a survey by food research and consulting firm Technomic about Thanksgiving dinner plans this year, 7% will eat at a restaurant, up from 6% the past two years.

Even White admits she'll be eating out on Thursday to make things easier on her boyfriend's elderly father, who can't manage stairs. But she won't do away with tradition altogether. She'll host a second Thanksgiving at her house on Friday.

"I have to have it," she says. "I can't bear the idea of no leftovers."

Thursday, February 26, 2015

Mid-Morning Market Update: Markets Slip; Kohl's Q3 Profit Misses Estimates

Following the market opening Thursday, the Dow traded down 0.09 percent to 15,808.02 while the NASDAQ declined 0.22 percent to 3,956.84. The S&P also fell, dropping 0.04 percent to 1,781.27.

Top Headline
Kohl's (NYSE: KSS) reported an 18 percent drop in its third-quarter profit.

Kohl's quarterly profit declined to $177 million, or $0.81 per share, from a year-ago profit of $215 million, or $$0.91 per share.

Its revenue dropped to $4.44 billion from $4.49 billion. However, analysts were estimating earnings of $0.86 per share on revenue of $4.55 billion. Kohl's also lowered its full-year profit forecast to a range of $4.08 to $4.23 per share, versus its earlier forecast of $4.15 to $4.35 per share. It projects Q4 earnings of $1.59 to $1.74 per share.

Equities Trading UP
SolarCity (NASDAQ: SCTY) shot up 10.25 percent to $59.45 after the company priced $54.425 million of Solar Asset Backed Notes. Baird upgraded the stock from Neutral to Outperform.

Shares of E-Commerce China Dangdang (NYSE: DANG) got a boost, shooting up 6.55 percent to $9.60 after the company reported upbeat Q3 earnings.

CGI Group (NYSE: GIB) was also up, gaining 7.28 percent to $38.59 after the company swung to a profit in the fourth quarter.

Equities Trading DOWN
Shares of Cisco Systems (NASDAQ: CSCO) were down 13.36 percent to $20.79 after the company posted weaker-than-expected fiscal first-quarter revenue and issued a weak outlook. Cisco also increased its share buyback program by $15 billion. Deutsche Bank downgraded the stock from Buy to Hold.

Kohl's (NYSE: KSS) shares tumbled 7.35 percent to $53.98 after the company reported an 18 percent drop in its third-quarter profit and lowered its outlook.

NetEase (NASDAQ: NTES) was down, falling 4.55 percent to $66.25 after the company posted its Q3 unaudited financial results. Deutsche Bank downgraded the stock from Buy to Hold.

Commodities
In commodity news, oil traded down 0.75 percent to $93.18, while gold traded up 1.06 percent to $1,281.90.

Silver traded up 1.14 percent Thursday to $20.68, while copper fell 0.35 percent to $3.15.

Eurozone
European shares were mostly higher today. The Spanish Ibex Index tumbled 0.37 percent, while Italy's FTSE MIB Index fell 0.79 percent. Meanwhile, the German DAX gained 0.67 percent and the French CAC 40 climbed 0.59 percent while U.K. shares rose 0.30 percent.

Economics
US jobless claims fell by 2,000 to 339,000 in the week ended November 9. However, economists were projecting claims to drop to 335,000.

US productivity rose by an annual rate of 1.9 percent in the third quarter, versus economists' expectations for a 2.4 percent increase. Unit-labor costs declined by 0.6 percent.

The US trade deficit increased to $41.8 billion in September, versus a revised $38.7 billion in the prior month. However, economists were expecting the deficit to rise to $39.7 billion. The country's exports fell 0.2 percent to $188.9 billion, while imports climbed 1.2 percent to $230.7 billion.

The Treasury is set to auction 3-and 6-month bills.

Data on money supply will be released at 4:30 p.m. ET.

Posted-In: Earnings News Guidance Eurozone Futures Forex Global Econ #s Economics Hot Intraday Update Markets Movers Tech

(c) 2013 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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Wednesday, February 25, 2015

Stock Market Bulls Getting Too Bullish

 


By John Whitefoot


Whether you’re in Pamplona, Spain or on Wall Street, when it comes to running with the bulls, the object is to stay ahead of the pack. This means not getting gouged physically or financially. However, there are an increasingly large number of investors out there right now who think they’ve got a handle on the bull market.


Why? The Federal Reserve says it won’t taper its generous $85.0-billion-per-month quantitative easing policy until the U.S. economy improves. And by that, it means—for now at least—an unemployment rate of 6.5% and an inflation rate of 2.5%.


As a result, the Federal Reserve’s easy money and artificially deflated near-record low interest rates have put the stock market front and center for income-starved investors looking for capital appreciation. As long as the Fed keeps its printing presses in overdrive, there’s no reason to think that the bull market will take a breather.


Case in point: in spite of a year marred with revised lower earnings in the first, second, and third quarters and a record 83.5% of companies issuing negative guidance for the fourth quarter, investors have been flocking with reckless abandon to the S&P 500, which continues to trade near record levels. (Source: “Earnings Insight,” FactSet web site, October 6, 2013.)


For the last week of October, 45% of investors were bullish on the market, down from 49.2% for the week ended October 24—the highest level since February 2011. Month-over-month, the number of market bulls climbed 25%. Over the same period of time, the S&P 500 climbed 4.8%. In the last week of June, just 30.28% of Americans were bullish, representing a four-month increase of 50%; the S&P 500, on the other hand, increased 9.7%. (Source: “Sentiment Survey,” American Association of Individual Investors web site, last accessed November 7, 2013.)


What about the bears? At the end of October, 24.5% of Americans were bears versus 30.6% at the end of September and 35.2% at the end of June.


The increasing spread between the number of investors who are bulls and bears is significant because, according to the late Sir John Templeton, bull markets are born on pessimism, grow on skepticism, mature on optimism, and die on euphoria.


But few seem to agree. The CEO and president of one investment firm said the bull market will rage on for another five years because he can feel the exuberance and strong positives in the U.S economy—meaning the stock market will continue to be the best game in town. (Source: Navarro, B.J., “Bull market has 5 years ahead: Pro,” CNBC web site, November 6, 2013.)


It could be argued that as long as the Federal Reserve’s money tree keeps blooming, the bull market will continue to rage on. But history shows that too much optimism is actually a bearish signal rooted in unrealistic expectations.


In fact, the divergence between the number of sky-high bull market investors and basement-dwelling bears, coupled with the stark economic disconnect between the bull market and the weak economic environment (high unemployment, stagnant wages), points to a correction.


What does this mean for investors? For starters, don’t get hypnotized by the bull market’s blind optimism; revisit your retirement portfolio and find out where your strengths and weaknesses lie and rebalance if needed. Eventually, the markets will catch up (or clue in) to what’s actually going on in the U.S.


On the other hand, if you don’t like sitting on the sidelines and want to take advantage of the bull market, you could always consider an exchange-traded fund that tracks the S&P 500 in step or inversely.


This article Stock Market Bulls Getting Too Bullish was originally published at Daily Gains Letter

The following article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.

Posted-In: Markets

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Friday, February 13, 2015

The Worst Is Not Yet Over For Corporate India

The Indian rupee fell 28% from 30-Apr to 28-Aug. Its worst fall since 1991 and the second worst in 40 years, says Credit-Suisse in a research note. What makes this worse is the fact that while previous declines of this scale were deliberate (in the 1960s) and discrete (1991), this latest crash wasn't. It was all driven by a crisis of confidence rather than anything else, says Credit Suisse.

Some $13 billion exited in the months of July and August as corporates panicked and tried to hedge themselves.

And as the rupee continues to remain unpredictable–currency volatility already is at the highest seen–it will likely claim more victims in the coming weeks, says Credit Suisse.

The thing to watch will be the next earnings reports as there may be surprises–or shocks–in there.

"Prior periods of INR volatility have been followed by confessions by corporates of violation of internal hedging norms," Credit Suisse says. "Mis-priced import and export hedges or complex currency derivatives are likely to get exposed."

Given the fear trade that drove the massive decline of the rupee, it can't be over so quickly, after all.

Microsoft Deal for Nokia Cannot Hurt Apple

The primary speculation about Microsoft Corp.’s (NASDAQ: MSFT) deal to buy Nokia Corp.’s (NYSE: NOK) handset business is that it gives the huge software company a building block to catch, or at least replicate, the success of Apple Inc. (NASDAQ: AAPL). Apple’s rise has been led by the launch and upgrades of its spectacularly successful iPhone and iPad. Apple churns out new versions of these products at least once a year. The latest will be released in just a few days. The Apple iOS has been successful as well, heralded as easy to use and nearly bug-free. Microsoft faces the problem that, even if it can build attractive smartphones with wonderful features and functions, it has to enter a market that Apple and Samsung have dominated for years.

Microsoft and Nokia are up against the same barriers that have halted the advance of HTC, Motorola, Sony Corp. (NYSE: SNE) and LG, the largest competitors to Samsung and Apple. Each loses large sums of money attacking the market. Another group of companies that include PC giant Lenovo also try to grab share. Apple and Samsung have portions of many markets that are well above two-thirds. In the United States, according to research firm comScore, Apple and Samsung had nearly 64% of the market in June. Those figures for both firms are rising. Additionally, Samsung products run Google Inc.’s (NASDAQ: GOOG) Android OS, which comScore shows with a 52% market share among operating systems used in smartphones sold in America.

Apple and Samsung are among the best examples of what business school professors call the “first mover” advantage. However, not only were they early to market. Their products remain the best in the market, as far as consumers are concerned.

The success of Apple and Samsung help them in several areas. First, the sales of each support huge marketing budgets, as if they needed that to afford advertising campaigns, given the strength of their balance sheets. Each also dominates shelf space in telecom wireless stores and consumer electronic retail outlets. There is no reason for AT&T Inc. (NYSE: T) or Best Buy Co. Inc. (NYSE: BBY) to move other brands into their places. Apple and Samsung drive sales. The promotion of new products is risky.

Apple pressed into the smartphone and tablet markets when there were no competitors. In essence, they created a market that did not exist when the first iPhone was released in mid-2007. Six years later, Microsoft has no chance of pushing into a sector that already is crowded with competition.

Wednesday, February 11, 2015

8 Big Estate Battles of the Rich and Famous

Nothing sets friends and family at each others’ throats more than an old-fashioned fight over money. Make it a dispute over a will and the fun really begins.

The emotions that bubble up in estate disputes are understandably raw. Make it about the property of a famous person and it can get really crazy. A minor celebrity (see Gary Coleman) with pennies to his name can generate a court battle worthy of a billionaire (see Howard Hughes).

And some estate battles are so classically obvious—old rich man, vivacious model, jilted family—they end up as textbook cases, literally. Playboy Playmate Anna Nicole Smith’s battle to keep the fortune of her late husband, Texas oil tycoon J. Howard Marshall II, ended up gracing the pages of the widely used textbook “Wills, Trusts and Estates.”

And that wasn’t the end of Smith’s unlikely influence on law students. After she died in 2007, her poorly drafted will and the court dispute over her body served as teachable moments for law professors as well.

Here are 8 Big Estate Battles of the Rich and Famous:

Gary Coleman and his wife Shannon Price in 2008. (Photo: AP)8. Gary Coleman

Worth: Modest home (with mortgage) and royalties

Winners: Anna Gray

Losers: Shannon Price, ex-wife

Sometimes it doesn’t take a large estate to spur a battle. Such was the case of Gary Coleman, the diminutive actor best known for his star turn on the ‘70s sitcom “Diffr’nt Strokes.” After years of being in the news mostly for health and legal problems, Coleman died in 2010. He was just 42. Then the battle began.

According to an account on Forbes.com, Coleman had left three wills, the last of which was a handwritten codicil bequeathing everything to his wife, Shannon Price. “Everything” was a home that still carried a mortgage, occasional royalties from his acting career and his ashes. The problem was, Coleman and Price had divorced, even appearing on “Divorce Court.” Still, Price claimed they had a common-law marriage. A judge disagreed, saying the marriage had ended. One of the stranger estate battles in Hollywood history ended with Coleman’s former business partner, Gray, taking the spoils.

James Brown and his wife Tomi Rae Hynie in 2005. (Photo: AP)7. James Brown

Worth: $50 million

Winners: To Be Determined

Losers: To Be Determined

When the Godfather of Soul died of a heart attack at 73 in 2006, he left his estate to charities that seek to educate disadvantaged youths. The directive seemed pretty clear, but it didn’t sit well with his widow, Tomi Rae Hynie, or his adult children. According to Forbes.com, the widow may not have been technically married to Brown (she was married to another when they got hitched) and there were questions about whether he was really the father of at least one of his nine children.

In 2009, the South Carolina attorney general announced that a settlement had been reached: the widow and the children would split half the money with the rest going to charity. Alas, the deal did not pass court muster this February when a court ruled it violated Brown’s will. For now, the estate sits in limbo.

Thomas Kinkade unveils his painting "Prayer For Peace" in 2005. (Photo: AP)6. Thomas Kinkade

Worth: $66 million

Winners: Amy Pinto, girlfriend

Losers: Nanette Kinkade, estranged wife

Artist Thomas Kinkade built his fortune by making people smile and feel good when they gazed upon his soothing country scenes. The “Painter of Light” left a more complicated situation behind when he died in April 2012 at 54. Pinto, who became involved with Kinkade after his marriage broke up, claimed she had two notes written by Kinkade directing that she receive his mansion as well as $10 million designated for a museum of his artwork. Kinkade’s wife disputed the claim. Somehow, the women managed to avoid a long, drawn-out drama and reached a settlement before the end of 2012. The details are secret.

Janie Hendrix, half-sister to Jimi Hendrix, and her father, James Al Hendrix, pose with a poster of Hendrix in 1997. (Photo: AP)5. Jimi Hendrix

Worth: $80 million

Winners: Janie, Jimi Hendrix’s stepsister

Losers: Leon, Jimi’s brother, and his children

Jim Hendrix ruled the rock world when he died in 1970 at age 27, but multiple battles over his estate have left it in a haze to this day. His father, Al, who had served as Jimi’s manager, battled record companies and other music industry entities for the rights to his songs and merchandising. He won out and everything was settled until Al died in 2002. Then the rancor began. The estate by then was worth $80 million.

The bulk of it was left to Al’s adopted daughter Janie. Al’s other son by Jimi’s mother, Leon, and Leon’s children sued, saying Janie had influenced Al to leave them out of his last will. After a three-month trial, a judge ruled Janie had not unduly influenced Al and that Leon’s history of drug use was reason enough for Al not to have trusted him with the estate.

Barbara Piasecka Johnson leaving court after winning estate case in 1986. (Photo: AP)4. John Seward Johnson I

Worth: $400 million

Winners: Barbara Piasecka, third wife

Losers: Depends on how you look at it.

When one of the sons of Johnson & Johnson founder Robert Wood Johnson died in 1983, his children were more than a little miffed at the terms of his will. You see, J. Seward Johnson I left nearly all of his money to his third wife, a Polish farmer’s daughter who was 42 years younger and had once been his maid. Johnson’s six children contested the will, claiming their father was incompetent and pressured into making the bequest.

In the end, the children were awarded $6 million each. John Seward Johnson Jr. was granted an extra $7 million as head of the oceanographic institute founded by senior. The kids were already millionaires through trust funds, but Junior told The New York Times that the will was a family embarrassment. In the end, Barbara, who died last April at 76, kept most of the money and the kids were left with a $25 million legal bill.

Anna Nicole Smith testifying during the estate trial in 2001. (Photo: AP)3. J. Howard Marshall II

Worth: $1.6 billion

Winners: E. Pierce Marshall (so far)

Losers: Anna Nicole Smith, J. Howard Marshall III

J. Howard Marshall II wasn’t a household name in life (he made most of his fortune in oil and by investing in Koch Industries), but thanks to a wild, drawn-out (is there any other kind?) lawsuit over his will involving former Playboy Playmate Anna Nicole Smith (his wife and 62 years his junior) and his namesake son versus his stepson, he became well-known after his death in 1995.

The battle over the estate boiled down to this: Smith and the namesake son were left out of the will, while the stepson was left everything. After years of battles in the court, an aspect of the case reached the U.S. Supreme Court. Alas, Smith’s efforts were rebuffed. Smith and J. Howard Marshall III have since died, but the U.S. Circuit Court still has not made a final ruling in the case.

Howard Hughes2. Howard Hughes

Worth: $2.5 billion

Winners: 22 cousins

Losers: Two ex-wives, a gas station owner, executives who worked for Hughes, among others

Howard Hughes was famous for many things. He was a pioneer in aviation. He made movies, perhaps most famously with Jane Russell. He piloted TWA. He had run-ins with U.S. senators. And at the end he was an eccentric recluse and the butt of late-night jokes on TV.

When he died in 1976 and no verified will was found, the headlines grew bigger. There was the handwritten document found on the desk of a Mormon Church official. That “will” left, among other bequests, $156 million to Melvin Dummars, a gas station owner whose account of giving Hughes a ride when he was stranded in the desert was used as the basis for the 1980 movie “Melvin and Howard.” It was another three years before the estate was settled by the courts, dividing the fortune among 22 cousins. In 1984, actress Terry Moore settled with the estate over her purported 1949 marriage to Hughes. She said the couple had never divorced. The sum she received was undisclosed.

Leona Helmsley leaving court in 2003. (Photo: AP)1. Leona Helmsley

Worth: $4 billion ($12 million contested)

Winners: Two grandchildren, charities

Losers: Trouble, her pet Maltese

When she died in 2007, Leona Helmsley left most of her fortune to charity, but it was a relatively small bequest that had everyone talking. Trouble, Helmsely’s apparently aptly named Maltese, received $12 million. She specifically left two of her grandchildren out of her will saying they knew the reasons, while two others only received money from a trust only if they visited their grandfather's grave each calendar year.

The public outcry was enormous, even bringing death threats against poor Trouble, whose annual security bill was said to reach $100,000. In the end, Trouble’s inheritance was reduced to $2 million and a judge ruled the left-out grandkids would each receive $6 million.

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Check out these related stories on AdvisorOne:

Tuesday, February 10, 2015

3 Health Care Stocks Under $10 Moving Higher

DELAFIELD, Wis. (Stockpickr) -- At Stockpickr, we track daily portfolios of stocks that are the biggest percentage gainers and the biggest percentage losers.

>>5 Stocks Set to Soar on Bullish Earnings

Stocks that are making large moves like these are favorites among short-term traders because they can jump into these names and try to capture some of that massive volatility. Stocks that are making big-percentage moves either up or down are usually in play because their sector is becoming attractive or they have a major fundamental catalyst such as a recent earnings release. Sometimes stocks making big moves have been hit with an analyst upgrade or an analyst downgrade.

Regardless of the reason behind it, when a stock makes a large-percentage move, it is often just the start of a new major trend -- a trend that can lead to huge profits. If you time your trade correctly, combining technical indicators with fundamental trends, discipline and sound money management, you will be well on your way to investment success.

>>5 Stocks Ready to Break Out This Month

With that in mind, let's take a closer look at a several stocks under $10 that are making large moves to the upside today.

BioScrip

BioScrip (BIOS) is a provider of pharmacy and home health services that partners with patients, physicians, hospitals, health care payors and pharmaceutical manufacturers. This stock closed up 3.3% to $7.07 in Tuesday's trading session.

Tuesday's Range: $6.81-$7.26

52-Week Range: $6.61-$17.62

Tuesday's Volume: 2.35 million

Three-Month Average Volume: 1.48 million

From a technical perspective, BIOS spiked higher here right above its 52-week low of $6.61 with strong upside volume. This stock has been downtrending badly for the last four months, with shares plunging lower from its high of $17.62 to its recent low of $6.61. During that downtrend, shares of BIOS have been consistently making lower highs and lower lows, which is bearish technical price action. That said, shares of BIOS have now entered oversold territory, since its current relative strength index reading is 26.63. Oversold can always get more oversold, but it's also an area where a stock can make a powerful bounce higher from.

Traders should now look for long-biased trades in BIOS as long as it's trending above its 52-week low of $6.61 and then once it sustains a move or close above Tuesday's high of $7.26 with volume that hits near or above 1.48 million shares. If we get that move soon, then BIOS will set up to re-test or possibly take out its next major overhead resistance levels $8 to $8.53. Any high-volume move above those levels will then give BIOS a chance to tag its 50-day moving average at $9.41.

NanoViricides

NanoViricides (NNVC), a nano-biopharmaceutical company, discovers, develops, and commercializes therapeutics for the treatment of viral infections. This stock closed up 4.1% to $5.31 in Tuesday's trading session.

Tuesday's Range: $5.01-$5.33

52-Week Range: $1.12-$7.59

Tuesday's Volume: 170,000

Three-Month Average Volume: 224,697

From a technical perspective, NNVC spiked sharply higher here right off its 50-day moving average of $5.01 with lighter-than-average volume. This stock has been trending sideways for the last month, with shares moving between $4.55 on the downside and $5.74 on the upside. This spike on Tuesday is now starting to push shares of NNVC within range of triggering a near-term breakout trade above the upper-end of its recent range. That trade will hit if NNVC manages to take out Tuesday's high of $5.34 to some more key overhead resistance levels at $5.70 to $5.74 with high volume.

Traders should now look for long-biased trades in NNVC as long as it's trending above its 50-day at $5.01 or above more support at $4.85 and then once it sustains a move or close above those breakout levels with volume that hits near or above 224,697 shares. If that breakout hits soon, then NNVC will set up to re-test or possibly take out its next major overhead resistance levels at $6.50 to its 52-week high at $7.59.

Opexa Therapeutics

Opexa Therapeutics (OPXA) is engaged in developing personalized cellular therapies with the potential to treat major illnesses, including multiple sclerosis. This stock closed up 9.5% to $2.06 in Tuesday's trading session.

Tuesday's Range: $1.85-$2.08

52-Week Range: $1.07-$5.19

Tuesday's Volume: 961,000

Three-Month Average Volume: 1.72 million

From a technical perspective, OPXA skyrocketed higher here right off its 50-day moving average of $1.84 and right above its 200-day moving average at $1.79 with lighter-than-average volume. This move is quickly pushing shares of OPXA within range of triggering a major breakout trade. That trade will hit if OPXA manages to take out Tuesday's high of $2.08 to some more near-term overhead resistance levels at $2.23 to $2.44 with high volume.

Traders should now look for long-biased trades in OPXA as long as it's trending above its 50-day at $1.84 or above its 200-day at $1.79 and then once it sustains a move or close above those breakout levels with volume that's near or above 1.72 million shares. If that breakout hits soon, then OPXA will set up to re-test or possibly take out its next major overhead resistance level at $3.70.

To see more stocks that are making notable moves higher today, check out the Stocks Under $10 Moving Higher portfolio on Stockpickr.

-- Written by Roberto Pedone in Delafield, Wis.


RELATED LINKS:



>>4 Stocks Spiking on Unusual Volume



>>5 Dividend Boosters That Could Really Pay Off



>>5 Stocks Under $10 Set to Soar

Follow Stockpickr on Twitter and become a fan on Facebook.

At the time of publication, author had no positions in stocks mentioned.

Roberto Pedone, based out of Delafield, Wis., is an independent trader who focuses on technical analysis for small- and large-cap stocks, options, futures, commodities and currencies. Roberto studied international business at the Milwaukee School of Engineering, and he spent a year overseas studying business in Lubeck, Germany. His work has appeared on financial outlets including

CNBC.com and Forbes.com. You can follow Pedone on Twitter at www.twitter.com/zerosum24 or @zerosum24.


Monday, February 9, 2015

3 Under-the-Radar Vacation Stocks That Could Soar

The official start of summer is now less than a week away, which can mean only one thing for a majority of American families: It's vacation time!

If we've learned anything about the American consumer, even when times were tough and consumer budgets were more constrained than they are now, many consider taking a vacation a necessity. A USA Today/Gallup poll conducted in late December noted that nearly three-quarters of the 1,038 people responded that they were going to take a vacation at least 100 miles from their home in 2013. With tourism spending in the fourth quarter alone totaling $1.5 trillion, it tells me there are clearly plenty of dollars out there to be made.

Source: David Quitoriano, Flickr

On many investors' watchlists as we head into the busy travel season are a few well-known companies. Disney (NYSE: DIS  ) is one such name that benefits from the summer vacation season as its theme parks see more visitors and its cruise ships stay busy. Disney also recently raised the price of admission into its U.S. theme parks, which should ultimately add some punch to its bottom line.

Another big beneficiary would be hotels such as Marriott International (NYSE: MAR  ) . Hotels that cater to a middle-class and upper-income individual are less likely to see a big fluctuation in hotel demand during the summer months. Some of the budget hotel chains could struggle a bit this summer as payroll taxes eat into consumers' disposable income, but Marriott looks poised to do just fine.

But, these names are on everyone's list. This doesn't make them bad companies by any means, but I love uncovering a good set of sleeper stocks. Today I intend to point out three beneficiaries of the summer travel season that few investors, if any, currently have on their watchlist.

Polaris Industries (NYSE: PII  )

Source: ATVist, commons.wikimedia.org

Nothing says a great time like getting on the back of an all-terrain vehicle and tearing up the countryside. Although ATVs can still be strong sellers in the winter months -- and it should be stated that the company also sells snowmobiles -- Polaris is the type of company that will see the bulk of its business come during the warm summer months. Polaris has stayed ahead of its peers by constantly innovating its product line and introducing a wide range of price points to cater to higher- and lower-income buyers. In Polaris' first quarter, it reported sales growth of 11% and actually upped its sales forecast for the remainder of the year to a range of 12% to 15%. It's a company that's firing on all cylinders, and I think it could make for a very sneaky vacation beneficiary.

Zumiez (NASDAQ: ZUMZ  )
Summer is all about being outside and taking up various sports and activities with friends and family. A little-known beneficiary could be action-sports apparel and accessories retailer Zumiez. It's pretty easy to be distrusting of the action-sports sector as a whole, because Pacific Sunwear and Quiksilver's inability to get the right product in its stores over the past couple of years doesn't inspire a lot of confidence in youth-oriented action-sports retailers. However, Zumiez has maintained strong pricing power through careful inventory management and has resisted the urge to expand into new locations beyond its ability to control that inventory. If consumers need surf, beach, or biking gear heading into summer, there's a possibility that Zumiez could be their destination.

Buffalo Wild Wings (NASDAQ: BWLD  )
Just because consumers refuse to give up their ability to take a vacation doesn't mean they aren't looking for other creative ways to save a dollar. Unless you're staying with family, you don't have much choice when it comes to food -- you have to eat out. I'm going out on a limb and projecting that Buffalo Wild Wings will be one of the biggest beneficiaries of consumers who dine out this summer. If you've kept up with the company's rapid expansion, you'd notice that it's moving into warmer, hot-spot vacation destinations within the United States. In addition, it's been adding new menu items that are reasonably priced and won't break a family of four's bank. With BWW's big sports-bar appeal and NCAA sponsorship, getting traffic into its restaurants this summer shouldn't be difficult. As long as chicken prices cooperate, I expect a sizable upside surprise from BWW in the coming quarters.

Do you have a vacation-oriented stock on your radar? Share it with the community in the comments section below.

Does Disney have the right tools to succeed? Find out now!
It's easy to forget that Walt Disney is more than just the House of Mouse. True, Disney amusement parks around the world hosted more than 121 million guests in 2011. But from its vast catalog of characters to its monster collection of media networks, much of Disney's allure for investors lies in its diversity, and The Motley Fool's premium research report lays out the case for investing in Disney today. This report includes the key items investors must watch as well as the opportunities and threats the company faces going forward. So don't miss out -- simply click here now to claim your copy today.

 

Sunday, February 8, 2015

Was "Arrested Development" Worth the Investment?

Netflix (NASDAQ: NFLX  ) shares fell more than 6% on Tuesday, which was the first trading day after the extended Memorial Day weekend -- and after Netflix's debut of Arrested Development, Season 4.

Investors are reacting to a mixed bag of Arrested reviews. The cult hit came into the weekend on a full head of buzz, but not everyone loved the return of the Bluth family. This was supposed to be universally loved, top-shelf material. Anything less feels like missing an earnings estimate. That's why Netflix shares are back to prices not seen since, oh, about three weeks ago.

NFLX Chart

NFLX data by YCharts.

But that didn't stop Arrested fans from enjoying the new content in droves.

The launch had "a noticeable effect on network traffic" across networks with Netflix customers, according to network analytics specialist Procera. The show accounted for 2% to 7% of all Netflix traffic this weekend, depending on which network you're looking at. In one extreme case, 36% of the unnamed DSL network's broadband customers came looking for frozen bananas at some point during the weekend.

To put that last number into context, the most active network around the House of Cards launch saw just 11% of its subscribers catching some of that show in the first weekend, again according to Procera. And HoC was declared a universal success.

So is there any money for Netflix in this famous banana stand? It's too early to tell. I suspect we'll get some clues on Thursday, when Chief Content Officer Ted Sarandos is scheduled to speak at analyst firm Nomura's telecom and media conference. He'll have to dodge questions like a Olympic-grade dodgeball pro in order not to spill any beans on Arrested Development's success (or lack thereof).

In the meantime, let's consider what metrics Netflix is likely to care about.

Content by the numbers
A traffic spike in the first week doesn't mean much. This could be an influx of Bluth fans with one-month free trials in tow, primed for conversion into loyal Netflix customers. Or they could be existing Netflix customers shifting their eyeballs from some other piece of content to Arrested Development for a while. So pure traffic figures aren't all that important.

Netflix is built on word-of-mouth marketing and voluntary customer loyalty. CEO Reed Hastings is proud of how easy it is to leave the service, for example -- no two-year contracts here, you're supposed to stick around (or come back after canceling) if you like the service. So content quality matters a lot. Critics and consumers don't always see eye to eye, and even Twitter recaps don't count as a statistical sample of real-world opinions. Procera might be able to follow up with viewership numbers a few weeks or months down the road, and strong figures there would definitely mean something. Otherwise, we'll just have to wait for some bread crumbs from Netflix's management, or significant changes to its subscriber numbers in coming quarters.

And Netflix does aim high with all of its in-house productions. House of Cards and Hemlock Grove are high-quality productions with big names both behind and in front of the camera. Arrested came with a built-in fan base and correspondingly high expectations. The company is likely to bet big on each of its hand-picked projects, which Sarandos recently said might double in 2014 from this year's four original shows -- and perhaps with direct ownership to replace the current licensing model.

That's an important distinction, like the shift from partnerships to full project ownership that made Marvel a powerhouse, and worthy of Walt Disney 's (NYSE: DIS  ) attention. The House of Mouse is now reaping the benefits of Marvel's big content bet, as the entire profit streams from megahits like The Avengers and Iron Man 3 now flow into Disney's coffers rather than being shared with distribution partners. Marvel proved that the model works; Netflix is dipping its toes into the production waters to see if the all-in model is right for its online distribution model. This could be yet another game-changer for the red-envelope-slinger.

Sniper vs. shotgun-slinger
Compare and contrast Netflix's big-budget bets with the shotgun approach at Amazon.com (NASDAQ: AMZN  ) . The e-tailer giant wants to get into the original content game as well, but it doesn't have the viewer data and the industry contacts that Netflix is basing its choices on, so Amazon launched a plethora of series pilots instead. Only the winners from that batch will see entire seasons produced. Remember that Netflix produces and publishes everything at once, skipping the whole pilot-production game.

Sometimes you get exactly what you pay for. Netflix is arming itself with a plethora of high-quality shows, while Amazon already gave up on some seemingly surefire hit concepts whose pilots didn't get the budgets and attention they deserved.

Did Netflix miss the mark with Arrested Development? Only time will tell. I haven't seen the new content yet, and was never a Bluth fan to begin with, so I'm not exactly the target audience here. Let the binge viewers get their fill, followed by a lemming trail of less fanatical fans. It's the much larger second group that matters, and what they tell their friends about this new Netflix thing.

Can Netflix fend off its burgeoning competition, and will its international growth aspirations really pay off? These are must-know issues for investors, which is why The Motley Fool has released a premium report on Netflix. Inside, you'll learn about the key opportunities and risks facing the company, as well as reasons to buy or sell the stock. The report includes a full year of updates to cover critical new developments, so make sure to click here and claim a copy today.

Saturday, February 7, 2015

How Will Chesapeake Handle the Post-McClendon Era?

On Wednesday, Chesapeake Energy (NYSE: CHK  ) will release its latest quarterly results. The key to making smart investment decisions on stocks reporting earnings is to anticipate how they'll do before they announce results, leaving you fully prepared to respond quickly to whatever inevitable surprises arise. That way, you'll be less likely to make an uninformed knee-jerk reaction to news that turns out to be exactly the wrong move.

Chesapeake has been a major natural gas and oil producer for years, but it has faced several controversial episodes with its founder and former CEO Aubrey McClendon along the way. Now that McClendon has stepped down, investors are wondering which direction the company will move. Let's take an early look at what's been happening with Chesapeake Energy over the past quarter and what we're likely to see in its quarterly report.

Stats on Chesapeake Energy

Analyst EPS Estimate

$0.25

Change From Year-Ago EPS

39%

Revenue Estimate

$2.80 billion

Change From Year-Ago Revenue

15.6%

Earnings Beats in Past 4 Quarters

1

Source: Yahoo! Finance

Can Chesapeake Energy keep growing under new leadership?
Analysts have gotten a lot more optimistic over the past few months about Chesapeake's earnings prospects. They've raised their estimates for the just-ended quarter by $0.03 per share as part of a larger $0.08 upgrade on their 2013 EPS consensus. The stock's response has been muted, however, with gains of less than 5% since late January.

As much attention as Chesapeake's executive office has gotten recently, investors have been just as worried about the company's financial situation. Low natural-gas prices have made it a lot more challenging for Chesapeake to maintain its substantial debt, and the company has had to sell off assets as a result. The company has also had to cut back on its capital expenditures, seeking to keep its spending this year under $6 billion.

Chesapeake is still seeking to raise more cash through further asset sales this year. In February, Chesapeake sold a 50% interest in some of its Mississippi Lime acreage to China's Sinopec (NYSE: SHI  ) . Then, earlier this month, Chesapeake said it's looking to sell further acreage in the Utica Shale play in the U.S. Midwest. Motley Fool contributor Tyler Crowe believes that Chevron (NYSE: CVX  ) might be a natural buyer for Chesapeake's Utica property, given its recent commitment to focusing on unconventional domestic energy plays for further growth.

The problem that Chesapeake faces is that other companies are following the same strategy to try to get through the tough times for natural gas. In particular, SandRidge Energy (NYSE: SD  ) has followed Chesapeake's road map toward greater production of oil and natural gas liquids, and with so little interest in dry-gas assets, no company selling them off will get full value from a buyer. If the recent recovery in natural-gas prices can take root, then and only then will interest in those assets start to build up again.

The key to Chesapeake's quarterly report will be for the company's new leadership team to present a viable strategy for the company going forward. With the potential for a leadership vacuum to reduce investors' confidence in the energy company, Chesapeake needs to quash those concerns and move forward aggressively with its plans.

Energy investors would be hard-pressed to find another company trading at a deeper discount than Chesapeake Energy. To learn more about Chesapeake and its enormous potential, you're invited to check out The Motley Fool's brand-new premium report on the company. Simply click here now to access your copy.

Click here to add Chesapeake Energy to My Watchlist, which can find all of our Foolish analysis on it and all your other stocks.

Friday, February 6, 2015

Google - The Dark Knight In The Smartphone War

The smartphone war is not over yet. The world already knows the saga of the rivalry between the two smartphone bigwigs Apple (AAPL) and Samsung (SSNLF). From board rooms, to courtrooms, to retail stores, the fight between Samsung and Apple have visited all places and the war between the two is no less than the U.S.-Iraq or the India-Pakistan war. Twenty years from now, their war will get a place in the school textbooks as well. Their stance has become so predictable to the world that now everyone knows that if there is a fresh launch happening from one company, the other will soon follow suit with a better alternative, and the battle goes on.

But the war is not limited to the two smartphone giants because news is that another tech honcho is setting up its arsenal to enter the smartphone war. 

The new debutant in the smartphone war

Google (GOOG) is coming out with bigger, more expensive version of its Nexus phone and tablet to attract more of the affluent consumers who faithfully buy each new generation of Apple's iPhone and iPad. So now it's Apple vs. Google in the smartphone ring.

Just when the world was busy exalting the launch of iPhone 6 and 6 Plus, Samsung launched a scathing attack by unveiling the Note 4, a strong response to Apple's launch. Now, Google is coming up with a new streaming video and music device, the Nexus Player, to compete with Apple TV and Roku, among others.

The latest popups from the Google house is all aimed to stand glaring into the eyes of the Apple lineage. From this we can make out rivalry brewing up between Google and Apple in the increasingly important mobile device market. Google's Android software and Apple's iOS software power most of the world's smartphones and tablets. So now we can see the war triangle developing between Apple, Samsung and Google. So is this a war of the companies of Android vs. iOS.

The Google dressing room

The new Nexus product line will hit the shelves in November, in time for peak holiday shopping, and will also compete against a variety of other phones and tablets that run on the free Android software, including popular devices made by Samsung. So we are about to see a new storm in the smartphone world.

Going by the street reports, Google is also about to follow the Apple suit and launch the twin Nexus devices. Both the Nexus devices will run on the latest version of Google's Android operating system. The latest android OS is called "Lollipop," thus following the Google tradition of naming its launch after a sweet treat, but will this really sweeten the consumers cart this festive season.

Interestingly, Google has lined up its launch to coincide with the much awaited launch of the new iPad from Apple. The iPad, which had introduced us to the tablet world way back in 2010, is supposed to reappear in an all new way today. Is the new Google product poignant enough to draw crowds from the iPad unveiling event and cut out a slice from the Apple frenzy?

How poised is the new Nexus range to give the rest a run for their money?

The latest Nexus 9 tablet, made by HTC (HTCXF), as we had predicted rightly in our last article titled: Will Google and HTC Combine To Bring Out The Next Nexus? will give a fresh lease of life to laggard HTC. The Nexus 9 offers a 9-inch screen, a couple of inches larger than its predecessor, and an inch smaller than its target competitor, iPad Air which sports a 10-inch screen. The Nexus 9 sports a considerably high price tag of $399, about 74% higher than its predecessor, but $100 less than the iPad Air. This premium pricing is another technique deployed by Google think tank to appeal to the Apple patrons, and yet keep the price more affordable.

The new Google smartphone, the Nexus 6, named quite close to the iPhone 6, boasts a nearly 6-inch screen, eclipsing the 5.5-inch display on the iPhone 6 Plus, the much hyped launch of the year.

Google has set the price of the Nexus 6 at $649 without a carrier contract, compared to t

Thursday, February 5, 2015

Camtek LTD Clears the Hurdles, But... (CAMT)

It's fun to be right, but it's also important to be right in a sustainable way. Otherwise, what's the point? While it remains to be seen if yours truly was right regarding his call last week on Camtek LTD. (NASDAQ:CAMT) [it's not looking ideal], it's worth another look at CAMT, if only to see how much progress has been made and what needs to happen now.

Just as a refresher, on July 1st, CAMT was dropping some key bullish hints. Specifically, the 3D printing stock was putting substantial pressure on a technical ceiling at $13.45. At the same time, however, Camtek LTD. had also just crossed above several key moving average lines, and better still, we had just seen bullish crosses - of one another - from those key moving average lines. Even better, we were starting to see some of those key moving average lines act as technical floors. Although a move above $13.45 was setting up to be the proverbial icing on the cake, all these clues together after a two-month consolidation phase made a very compelling case in favor of CAMT.

Well, the good news is, after a handful of attempts, Camtek LTD. shares have cleared the hurdle at $13.45. The bad news is, the big gap that the stock left behind this morning to do so is likely to be a drag on the stock from this point forward. It could even require CAMT shares slide back and fill it in. The problem is, should this stock make such a pullback, it could deflate the still-fragile euphoria typically needed to keep an uptrend in motion. Even if an all-out return to Thursday's closing price of $3.20 isn't in the cards, though, the sheer size of today's gain - bullish as it may be - is a tough act to immediately follow.

That said, CAMT is still worth adding to watchlists if not yet to portfolios. The break above the resistance level at $13.45 is still a biggie, and the fact that we're seeing the stock break out on such high volume is a huge clue that the needed participants for this rally are waiting in the wings.

Bottom line? It's still a tough buy at this point, but only because of the gap at the open this morning. If we see a small retreat and then a solid bullish pushback though - whether or not the gap gets filled - Camtek LTD. will be fully buy-worthy. CAMT shares were priced above $5.00 just a few months ago, with a lot less going for them then.

For more trading ideas and insights like these, be sure to sign up for the free SmallCap Network newsletter. You'll get stock picks, market calls, and more, every day. Here's what you've missed recently.

Wednesday, February 4, 2015

IPO Docket Heats Up

The initial public offering calendar is shifting back into high gear, with 18 U.S. companies expected to debut the next two weeks.

Barring any major hitches for those deals, that would mark the most U.S.-listed IPOs in any two-week period since mid-April.

The increase in activity shows that companies from financial data and services provider Markit Ltd. to renewable-energy business Abengoa Yield PLC remain confident in investor demand for new companies in which to invest. Meanwhile, the next few weeks are short on earnings reports and holidays that can draw investor attention away from IPOs.

"It's a really favorable combination of positive market conditions, a healthy appetite for new issues after a quieter spring and an open four-week period between the Memorial Day and July 4 holidays without the distraction of earnings," said Cully Davis, a managing director in equity capital markets at Credit Suisse Group AG.

Markit expects its June 18 debut will raise up to $1.1 billion on June 18, according to marketing materials for the deal. Abengoa Yield expects its debut will raise up to $624 million after Thursday's close.

Other companies on the docket include MobileIron Inc., which makes tools to help corporate tech departments manage employees' mobile devices, and biopharmaceutical firm ZS Pharma Inc.

It's unlikely every single one of these deals will be a home run for investors, but they'll have the tailwind of broad demand for U.S. stocks that has driven indexes such as the S&P 500 to record highs.

So far in June, the S&P 500 is up about 1.3% while the Russell 2000 index of small companies' shares has rallied 3.2%. Big stock-market swings, which can stymie bankers' and investors' ability to agree on the right price for an IPO, have been notably absent.

A number of recent IPOs have enjoyed healthy demand, such as networking equipment maker Arista Networks Inc., which rose 28% from its June 5 debut through Monday's close. Oil driller Parsley Energy Inc.(PE) has advanced 34% since it went public on May 22.

Tuesday, February 3, 2015

Chance Rides' Success Built on Dedication to Family Values

#fivemin-widget-blogsmith-image-617692{display:none}.cke_show_borders #fivemin-widget-blogsmith-image-617692,#postcontentcontainer #fivemin-widget-blogsmith-image-617692{width:570px;height:411px;display:block} Chance Rides: Kansas Company Stays in the Family Against All Odds

Ten years ago, Dick Chance and his son, Mike, started meeting every day at 9 a.m. in Dick's office -- a modest windowless room, made cozy by an abundance of family photos. Their company, Chance Rides -- which makes everything from roller coasters to carousels for amusement parks -- was on the verge of bankruptcy. Part pep rally and part crisis control, the meetings helped keep the business from going under. A decade later, the company is in far better shape. But the daily ritual has stuck, keeping the two men in close contact as they run America's largest amusement ride maker just outside Wichita, Kansas. Fly into the city's airport and you can easily spot the Chance manufacturing building from the sky. Situated in the center of a 40-acre facility, the massive white structure is as tall as the Ferris wheels the company makes and large enough to house 50-foot pieces of roller coaster track. Despite how visible it is, few people -- including many locals -- know what Chance is making inside those white walls. But since 1961, when Harold Chance, Dick's locomotive-loving father, started producing the now-iconic C.P. Huntington miniature trains, the company has built the rides that are part of our childhoods: like the Zipper, the Trabant, and the Toboggan. But making huge rides that cost millions of dollars isn't as carefree as it looks. How this company has survived -- and remained in the family -- is a story as complicated as the rides Chance makes. Chapter 1: Never Give Up "Treat people right, be honest, work hard. Things will take care of themselves." Harold Chance lived by those words and his son Dick took to them heart when he bought the business, then called Chance Manufacturing, from his father in 1985. Dick worked hard to grow the company. He renamed it Chance Industries and branched out into a motor coach division and developed new carnival rides, like the 90-foot-tall Giant Wheel and the pendular Pharaoh's Fury. "It was exciting," Dick remembers. "When I bought it we were doing $14 million a year in business, and that grew to $50 million at one time." By the mid-'90s, Chance employed nearly 400 people. Now 149 people work there full time. When he was a teenager, Mike worked summers in the family shop -- until he and his dad had what they jokingly call "the falling out." "My friends had different jobs. They would work in restaurants at night, and I would be like, 'Man, this stinks,'" Mike laughs, retelling the story. "So I went to work at Pizza Hut ... and I was good at it!" Mike moved away to work in Arizona after graduating from Kansas State University. But he had always stayed connected with Chance Industries -- attending trade shows with his father, so in 1997 he came back to Wichita to work with his dad. Traveling carnivals, which had been Chance's main customers for decades, were slowly dying out as more people went to big amusement parks seeking even bigger thrills. "We needed a 'Wow!' product," Mike says. "And in this business, that means roller coasters." Chance built coasters like the Toboggan and the Big Dipper, but those were small in comparison to the gigantic rides at parks like Six Flags and Disney World. But just as Mike was putting his plans into place to get into bigger rides, Chance's business model -- helping carnival owners buy its rides by co-signing their loans -- proved to be problematic. Chance had been growing between 10 to 15 percent a year in the 1990s, helped by the fact that Chance's lender, CIT Corporation, was comfortable with the company backing loans by its customers. "It worked for years and years," Dicks says. "Carnivals were notoriously a little late in paying ... but they always paid. CIT always went along with it, and they always got paid." But in 2001, a much bigger insurance company, Tyco (TYC), bought CIT and that all changed. "Tyco came in and looked at our portfolio of business -- around a $30 million portfolio -- there was about $7 million that was 90 days past due," Dick says. Tyco wasn't willing to wait for that money. So to protect the company, Chance filed for Chapter 11 bankruptcy protection. Chance wasn't alone in its struggles. Even as he was trying to keep his company afloat, Dick got a call from a longtime competitor, Dana Morgan. He wanted to know if Chance was interested in buying his roller coaster company. Mike had wanted to build coasters before Chance's troubles began. But could they find customers for multimillion dollar roller coasters when Morgan seemingly couldn't? The father and son drove to Oklahoma City to meet with Gary Story, the president of Six Flags amusement parks. Story told them that he needed to buy two new coasters. "So we asked, would you buy them from us if we could make a deal with Dana," Mike remembers. "And Gary said, 'Well, yeah.'" But with Chance in bankruptcy, it was tough getting the deal done with Morgan, a public company. Ironically, the problem that got them into financial trouble ended up helping with the acquisition. Chance had helped Morgan when it was small, financing rides for the company. "So it was our relationship that made it happen," Mike says. "If we hadn't gotten that Six Flags order, or done that deal with Dana ... I don't think we would have made it," Mike says. But there was never a time when the Chances thought about walking away from the family business. "My grandfather always told me, 'You only lose if you give up,'" Mike says. "That actually got us through the bankruptcy," Dick adds. "You never lose unless you quit ... and we're not quitting." Chapter 2: The Weight of a Whistle A few miles southeast of the Chance plant is O.J. Watson Park, a gem of public space, with miniature golf and pony rides. It also has one of Chance's iconic trains, the C.P. Huntington. Terry Giddeon, Chance's service product manager responsible for the train brand, grew up just two miles from the park. He can still remember hearing the whistle blow from his bedroom window. In a strange twist of fate, the first C.P. Huntington that Giddeon ever built for Chance -- almost 30 years ago -- was the replacement locomotive for that childhood train. "Never in my wildest dreams did I imagine I'd build the train that Watson Park has now," Giddeon says. "Installing it was the best feeling in the world." The trains needs constant maintenance like any machine, and Giddeon says there were long periods of time when the Watson Park train just wasn't getting it. Last year, the train was shut down more than it was running. But this year, Giddeon is making sure that doesn't happen again. He has made the Watson Park train a personal priority of his, working with the park's manager to keep the train running. Giddeon believes that dedication sets Chance apart from its competitors. "The support is always there," he says. Even if a ride is decades old, Giddeon can get parts for it and even provide a service manual. "The Santa Barbara Zoo just bought another locomotive from us. When they get that level of support, they don't shop around." Giddeon doesn't always see the smiles his work inspires, but just knowing that he's brought joy to children young and old is what keeps him going. "When you see the kids grinning ear to ear, I call it my natural high," he says. "It gives you goose bumps -- makes you feel proud to work for the company." Chapter 3: An Artist in Kansas When Julie Boman was a little girl, she decided to express herself artistically -- by drawing a horse on her parents' marriage certificate. She was in a heap of trouble from the act of childhood mischief, but it proved to be prophetic. Today, Boman is one of three full-time artists in Chance's carousel studio. She paints horses, tigers and dolphins -- even mythical creatures like jackalopes -- for the ride that has been the center of carnivals for more than a century. Boman, who is self-taught, paints gorgeous animals every vibrant hue of the rainbow, then embellishes them with final touches like jewels and lace. Carousels take an average of three months to assemble, with a single animal taking between 80 and 110 hours to build and decorate. She also painstakingly adds detail to the center panels of a carousel, inspired by everything from famous works of art to travel photos she spots in magazines. It's that imagination that landed her a job at Chance 15 years ago. After seeing a mural Boman painted in her church's basement, a fellow parishioner told her boss at a local McDonald's about Boman's artistic skills. He hired Boman to paint murals at a few of his Wichita franchises. "It was my first paying job as an artist," Boman says. A family friend, who worked at Chance, saw her work at McDonalds's and came to pay Boman a visit one Sunday afternoon. He asked her a question that ended up changing her life: "How would you like to paint carousel animals?" Boman knows she's lucky to work as an artist in Kansas. "Everyone told me, you better get a backup, you can't do art for a living," she says. "I never thought this would be reality." But Boman says that Chance being family owned makes all the difference in her work. Both Mike and Dick stop by the studio on a regular basis and Mike often brings his 6-year-old son Carter by on Saturdays to visit the animals. "Oh, he loves carousels," Boman says. "If you had a corporate board running the company, they'd be focused on the profit and having all of this made in Mexico or China," she says. "And they could have all of this done for less [money]. It's nice to have bosses who let you focus on quality." In that tall white building in the heart of Kansas, the Chance family has built a company that manufactures magic for the masses. But perhaps even more importantly, they've led a company that, through every twist and turn, has been a place where employees and quality always come first.

Dow at record: Sell in May and go away?

May is best known as the month when flowers start to bloom, but on Wall Street it has a connotation of gloom as the month that kicks off what historically has been the stock market's worst six-month stretch.

There is an old Wall Street adage that gets plenty of press this time of year: "Sell in May and go away."

It has a catchy ring to it. It gets investors wondering about the safety of their stock portfolios. And it is backed up by reams of historical statistics that tell a simple story: Market returns May though October tend to be less robust than the November-April span.

STOCKS: Dow closes at new record high as Fed pares stimulus

RECORD DOW: The 17 stocks making it happen

Since 1928, the 1.9% average gain for the Standard & Poor's 500-stock index in the six-month span starting in May is the weakest of them all, and feeble compared with the 5.1% return in the No. 1-ranked six-month stretch ending in April, data from Bank of America Merrill Lynch show.

(It doesn't always pan out. Last year, the S&P 500 rallied 10% in the typically weak six-month period.)

BofA's statistics highlight the fact that the May-October time frame poses the highest risk of a market decline of 20% or more than any other six-month time period.

S&P Capital IQ data show that a broad basket of bonds has handily outperformed the S&P 500 by more than 4 percentage points, on average, in the lousy May-through-October period since 1977.

And eight of the 10 worst months in market history, money management firm Gerstein Fisher notes, occurred in either May, June, July, August, September or October. The major cause of such declines, the firm says, was war or a major financial crisis.

In essence, the statistically driven angst creates a seasonally manufactured decision for investors each year: stay put or flee the market in hopes of getting in at lower prices in November?

This year the market seems especially vulnerable. Russia is replaying the Cold War card in ! Ukraine. Some tech stocks are reliving 2000-style pullbacks. The midterm election year often sees a market low in the second or third quarter.

The S&P 500 has also gone 31 months without an official 10% correction, compared with a correction every 18 months on average.

REJECTION: Owning S&P 500 dropouts is costly

As a result, there's even more concern that the market could run into trouble beginning in May, says Sam Stovall, managing director of U.S. equity strategy at S&P Capital IQ.

So what's an investor to do?

Drew Nordlicht, managing director and partner at HighTower San Diego, says he's not yanking his clients' money out of the market. But he is dialing back risk by moving into less-pricey corners of the market.

"We are not reducing equity exposure," says Nordlicht. "We are taking money out of stocks with outsized returns and (moving) into better-valued parts of the market."

Stovall's analytical work points him to two stock sectors that have done well in the past in the weak six-month period: consumer staples and health care. These sectors posted average gains of 4.6% and 4.7%, respectively, vs. a gain of just 1.3% for the entire S&P 500, in the May-through-October period.

Sunday, February 1, 2015

ObamaĆ¢€™s 2015 Budget Riles Up Retirement Industry

President Barack Obama’s $3.9 trillion budget for fiscal 2015 includes new taxes on wealthy Americans and businesses, as well as places curbs on retirement savings contributions while also providing some proposals for helping students and parents pay for college.

While Obama’s plan would include automatic enrollment in IRAs for workers as well as several provisions to help students and families pay for college tuition, industry officials are bristling over the proposals to limit the up-front tax benefits for many 401(k) and IRA savers, as well as placing a cap on the amount Americans can accumulate through the combination of defined benefit and defined contribution plans as well as IRAs.

In a speech from Powell Elementary School in Washington, Obama said that his budget is a “roadmap for creating jobs with good wages and expanding opportunity for all Americans,” while also investing in the nation’s “economic priorities in a smart way that is fully paid for by making smart spending cuts and closing tax loopholes that right now only benefit the well-off and the well-connected.”

Right now, Obama said, “our tax system provides benefits to wealthy individuals who save, even after they’ve amassed multimillion-dollar retirement accounts. By closing that loophole, we can help create jobs and grow our economy, and expand opportunity without adding a dime to the deficit.”

Obama’s budget again proposes a limit on the value of all tax deductions, defined contribution exclusions and IRA deductions to 28% of income, and also proposes to cap the overall amount that could be held in tax-deferred accounts at $3.4 million.

Mike McNamee of the Investment Company Institute notes in a Tuesday blog that limiting tax deferrals to 28% “for the highest three income brackets (33%, 35%, and 39.6%) would substantially change the tax treatment of retirement contributions and undermine retirement security by reducing incentives for businesses to provide retirement plans.”

Brian Graff, executive director of the American Society of Pension Professionals and Actuaries, says Obama's proposal includes "the same wrong-headed attacks on employer-sponsored retirement plans as last year."

Said Graff: "The double tax on contributions to 401(k) plans and the misguided $3 million cap on the value of retirement benefits do not close any loopholes or curb any abuse. They punish small-business owners who sponsor retirement plans for themselves and their employees. It is disappointing that an administration that claims to be concerned about giving more American workers access to retirement savings would discourage small-business owners from maintaining the 401(k) plans they have now."

Under the budget proposal, workers earning more than $250,000 would have to pay tax on contributions in the year the contributions are made, and then pay tax at the full rate when contributions are distributed at retirement, Graff said. "This amounts to a penalty for saving through a 401(k) plan. Who could blame a small-business owner for thinking that if the government is going to penalize them for saving in a retirement plan, maybe they should not have that plan?"

Obama also said that his budget “gives millions more workers the opportunity to take advantage of the tax credit,” paying for this “by closing loopholes like the ones that let wealthy individuals classify themselves as a small business to avoid paying their fair share of taxes.”

The budget would also eliminate a provision used by hedge funds and private-equity firms to treat income from managed investments, known as carried interest, as capital gains, as opposed to ordinary income.

Obama said during his Tuesday comments that at a time when the nation’s “deficits have been cut in half,” his budget plan “allows us to meet our obligations to future generations without leaving them a mountain of debt,” and “adheres to the spending levels that both parties in both houses of Congress already agreed to.” /* .premium-promo { border: 1px solid #ddd; padding: 10px; margin: 0 10px 10px 0; width: 200px; float: left; } .premium-promo li, .premium-promo ul { list-style-type: none; margin: 0; padding: 0; } .premium-promo li { margin: 0 0 10px; padding: 0 0 10px; border-bottom: 1px dotted #ddd; } .premium-promo h3 { text-transform: uppercase; font-size: 11px; } .premium-promo h4 { font-size: 16px; } .premium-promo a { text-decoration: none !important; } .premium-promo .btn { background: #0069a1; border-radius: 4px; display: inline-block; padding: 5px 10px; clear: both; color: #fff; font-weight: bold; } .premium-promo .btn:hover { background: #034c92; } */ But Sen. Orrin Hatch, R-Utah, ranking member on the Senate Finance Committee, chided Obama’s plan for being “a full month late,” and a recycled version of “the same old spending surges, tax hikes and budgetary smoke and mirrors that have repeatedly failed to right the nation’s economic ship.”

Said Hatch: “Instead of embracing fiscal responsibility, this budget increases government spending by $791 billion over the next 10 years. Instead of tackling the nation’s sky-high debt, which has already exploded by a whopping $6.8 trillion under this White House, this budget slaps on an additional $8.3 trillion over the next decade and fails to include any substantial reforms to the greatest drivers of our debt — Medicare, Medicaid and Social Security.”

Indeed, political strategist Greg Valliere of Potomac Research opined Tuesday that because "the White House needs to keep Democrats motivated for the fall election,” the budget will not mention entitlement reform.

Obama’s budget did, however, abandon the idea of a “chained” consumer price index that would slightly reduce Social Security cost of living adjustments (COLAs). As Valliere notes, “Congress earlier this year caved in on a modest COLA reduction for military retirees — confirming that no one in this city dares to touch the issue, even though it will demand attention later this decade.”