The Week Ahead: Where in the World to Invest?

It was another week where the stock market surprised the majority by continuing higher despite the already lofty levels of the major averages. The S&P 500 broke through short-term resistance on Wednesday and closed the week just below the 1800 level.

Oftentimes, there is selling when a market average reaches a round number like 1800 but it is also possible this time that a strong close above this level will move more money off the sidelines. Mutual fund managers have a relatively high level of cash on hand and many are not keeping pace with their benchmarks. A failure to match or exceed the benchmarks could jeopardize their year-end bonuses.

Many continue to voice concern over the high level of bullish sentiment, which implies that the smaller investors have joined the party. But Charles Schwab CEO Walter Bettinger commented on CNBC that only about half of their clients think it is a good time to be investing in equities. Furthermore he said "Our clients are engaged, but they're very cautious about the markets overall."

In last week's column, I shared the reasons why I did not think a bubble was forming even though the market is overextended. This is especially true when you look at the investing public as most are now scared to death of the stock market, unlike 2000.

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Just a year ago the stock market was bottoming after the post election correction as the S&P hit a low of 1343.65 on November 16. This date it labeled on the chart and shows that one of the star performers since that low has been Japan's NK225, which is up over 63%.

The chart of the NK225 shows that resistance at line a has just been overcome even though some are having doubts about their economic plan. From a technical standpoint, it was clear in early 2013 that both the NK225 and Japanese yen had undergone long-term trend changes that should last many years. This is still my view.

The Spyder Trust (SPY) and German DAX show very similar patters as both are up over 31%, just half of Japan's gain. The emerging markets as measured by Vanguard FTSE Emerging Market (VWO) is now up 2.3% since the November 2012 lows. Since I do feel a more meaningful correction is likely in the next few months (see What to Watch), it should present a buying opportunity.

But should you just concentrate on stocks in the US or should you also look elsewhere?

The Vanguard FTSE Emerging Market (VWO) was discussed in more detail in last August's A Contrary Bet for 2014? as I though it might be a star performer in 2014 and advised a dollar cost averaging strategy to get invested. As it turned out, VWO bottomed the following week and had a nice rally into the late October high, but then dropped as many turned became skeptical of the group.

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The weekly chart of VWO shows that it may finally be ready to move significantly higher as last week it dropped below its quarterly pivot at $40.32 before closing higher. The OBV had broken its major downtrend in early October and has turned up this week.

Part of my rationale for looking at the emerging markets was that I thought that the US and Eurozone economies were actually doing much better This growth, I felt, should spread to the emerging market economies in the coming year.

Argentina and Dubai have been the two top performers in 2013, up 86.4% and 72.6% respectively, with the US just below Greece on the list. This would have been tough to predict at the start of the year as the wide range of data gives you the ability to predict the US market's direction. Though a sharp correction is possible before the end of the year, we should finish the year with the double-digit gains I was looking for last December.

Though there has been some softness in the recent economic data for the Eurozone lately, which their rate cut may offset, their economies seem to be in an improving trend. The JP Morgan Global Manufacturing PMIT rose to 52.1 in October, which was a 2?-year high.

 

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In an early November press release they stated "The data signaled expansions  in the US, the euro area, China , Japan, the UK, South Korea, Taiwan, Canada, Russia, and Brazil." Of course Russia and Brazil have two of the worst-performing stock markets this year, down 5.8% and 15% respectively.

The Global PMI Output Index from Markit points to 1.9% global year-to-year GDP in the 3rd quarter, up from 1.1%. Their chart shows the sharp upturn in their Global PMI Index, which is now very close to its downtrend, line a. It does show a pattern of higher highs but the global GDP does not.

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The data on the US economy last week was generally weak as the Empire State Manufacturing Survey dropped into negative territory. Imports also were down sharply due in part to a contraction in petroleum-based products. The Industrial Production also slipped to -0.1% but the manufacturing sector component did show nice growth.

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On Monday, we get the monthly Housing Market Index, followed by more housing data on Wednesday with Existing Home Sales. The homebuilders bounced late last week and finally show some signs of bottoming.

The Employment Cost Index is out on Tuesday with the Consumer Price Index, Retail Sales, and FOMC minutes on Wednesday. In addition to the jobless claims on Thursday, we get the Producer Price Index, the PMI Manufacturing Survey, and the Philadelphia Fed Survey.

It may take some disappointing numbers to start a market correction as the public again question the economy's health. Monthly readings are usually not important to the big picture as it is the trends that are important.

U.S. stock futures tick higher Thursday

U.S. stock futures were ticking higher on Thursday after Wall Street took a tumble in the prior session as the Federal Reserve trimmed its bond purchases.

Dow Jones industrial average index futures were up 0.2%, Standard & Poor's 500 index futures added 0.1% and Nasdaq index futures added 0.1%.

Stocks got a temporary boost Wednesday from aggressive interest rate hikes by the Turkish central bank aimed at stabilizing the lira and keeping inflation in check. But the Federal Reserve's decision to further "taper," or reduce, its mortgage and long-term bond purchases, even though expected, was a major factor in roiling markets.

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On Wednesday, the S&P fell 18.30 points, or 1%, to 1,774.20. The Dow fell 189.77 points, or 1.2%, to 15,738.79. The Nasdaq composite dropped 46.53 points, or 1.1%, to 4,051.43.

WEDNESDAY: Stocks close at new 2014 lows as Fed tapers again

In Asia Thursday, responding to the Fed news and some weak economic data out if China, Japan's Nikkei 225 index was down 2.5% at 15,007.06 after the government reported that retail sales fell 1.1% in December from the month before. Hong Kong's Hang Seng index declined 0.5% to 22,035.42.

European stocks were staging a retreat, with all the major regional indexes down. Spain's IBEX 35 led decliners, off 0.7%.

Benchmark oil for March delivery was up 13 cents to $97.49 a barrel in electronic trading on the New York Mercantile Exchange. The contract slipped 5 cents to close at $97.36 on Wednesday.

The U.S. government's first estimate of fourth-quarter economic growth is due Thursday.

DATA: Economists see bright GDP report

Contributing: Associated Press

Stock futures slightly higher ahead of Fed move

U.S. stock futures were mixed Wednesday, as investors weighed Turkey's move to hike interest rates in an effort to stem emerging market turmoil and eagerly awaited the Federal Reserve's policy decision later in the session.

Wall Street expects the Fed to continue to to further reduce its stimulus for the U.S. economy when it wraps up its two-day meeting, despite a hiccup in job growth in December and recent market turbulence in developing markets.

The Fed meeting that concludes today will be the last to be presided over by Ben Bernanke, who is stepping down after eight years as chairman and will be succeeded next week by Vice Chair Janet Yellen. She is expected to stick closely with Bernanke's policies.

Dow Jones industrial average index futures were flat. Standard & Poor's 500 index futures fell 0,1%. Nasdaq index futures were up 0.1%. Investors are still grappling with the potential fallout in developed markets like the U.S. from the recent crisis in emerging markets.

Jitters about emerging economies were soothed by the Turkish central bank's aggressive interest rate hike to stabilize its currency and China's infusion on funds into its banking system. Turkey's central bank hiked overnight lending rate to 12% from 7.75% — a move more aggressive than what most analysts expected.

Turkey's rate hike is viewed as a test case for other emerging market countries. The move is intended to stem capital flight from these countries and combat inflation. The downside is that rising rates can hobble domestic economies as borrowing rates rise.

Wall Street will also be eyeing earnings reports from U.S. companies. Before the opening bell, Dow Chemical topped earnings forecasts by a wide margin and also topped revenue projections. Aircraft maker Boeing also topped both earnings per share and revenue projections.

On Tuesday, U.S. stocks broke a losing streak carried over from last week.

The S&P 500 rose 10.94 points, or 0.6%, to 1,792.50. The Dow gained 90.68 poin! ts, or 0.6%, to 15,928.56. The Nasdaq climbed 14.35 points, or 0.4%, to 4,097.96.

TUESDAY: Stocks rise as Dow breaks losing streak

Key benchmarks in Asia advanced on Wednesday. Japan's Nikkei 225 jumped 2.7% to 15,383.91 and Hong Kong's Hang Seng rose 0.9% to 22,154.40. China's Shanghai composite was up 0.6% at 2,049.91.

The main regional benchmarks in Europe were firmly higher following the action from Turkey's central bank. Britain's FTSE 100 index rose 0.7% and Spain's IBEX 35 index added 1.2%. The DAX index in Germany climbed 1%.

Benchmark oil for March delivery was down 48 cents to $96.93 per barrel in electronic trading on the New York Mercantile Exchange. The contract gained $1.69 to settle at $97.41 a barrel on Tuesday.

Contributing: Associated Press

Winter's Stock Knockdown May Give Way To A Spring Thaw

The questions raised by last week's stock market sell-off are simple: How long and how deep?

The short answers are: The sell-off may get deeper, but it won't last forever. Stocks opened higher on Monday, creating hope of a short end to the selling. But the early gains were gone by noon. Maybe the sell-off will be short-lived. "Maybe" is the key word.  

Spring, however, may make investors happier.

The sell-off was nasty, especially on Friday when the Dow Jones industrials fell 318 points, or two percent, to 15,879, the biggest one-day loss for the blue chips since June 20. Its two-day loss of 494 points was its biggest since October 2011 during the federal budget crisis.

The Standard & Poor's 500 Index and the Nasdaq Composite Index dropped 2.1 percent and 2.2 percent, respectively. For the month, the Dow is down 4.2 percent, with the S&P 500 down 2.1 percent and the Nasdaq down 1.2 percent.

If you are fan of the Stock Trader's Almanac and its January Barometer, you know these are not good numbers, suggesting a flat year for the U.S. stock market at the very least.

The catalysts -- and you always need one for a sell-off -- were:

Worries about emerging markets -- because of tumbling currencies in Asia, Turkey and Latin America. Worries that China's growth is slowing dramatically; which would wound emerging economies like Brazil, India and South Africa. Worries the Federal Reserve's tapering would raise interest rates too far and too fast. Fact is, however, interest rates have been falling this month. Fears of disappointing U.S. corporate earnings and an economy that hasn't looked especially vibrant of late.

In and of themselves, the losses themselves aren't huge, but the market looks now to have put in a near-term peak on Dec. 31, when the Dow and S&P closed at new records. The Nasdaq hit a 14-year high on Jan. 22 and is still 18 percent its March 2000 peak.

Related: What Will January Tell Us About Stocks This Year?

So far, 28 of the 30 Dow stocks are lower in January; Boeing Co. (NYSE: BA) and Merck & Co. (NYSE: MRK) are the only winners. Twelve of the 30 Dow stocks are off by more than 5 percent; the biggest loser is General Electric Co. (NYSE: GE), down about 11 percent as of Friday.

In addition, more than 370 stocks in the stocks in the S&P 500 are lower this month. Best Buy Co. (NYSE: BBY) is the biggest loser, down 37.3%. Sixty-four stocks in the Nasdaq-100 Index are down for the month, with Bed Bath & Beyond (NASDAQ: BBBY) the laggard, down 19.6 percent. Mighty Apple (NASDAQ: AAPL), which reports its big fiscal-first-quarter results after the close, is down 2.7 percent.

There were technical breakdowns in the sell-off. The Dow and S&P 500 dropped under 16,000 and 1,800, respectively, for the first time since Dec. 17. The Nasdaq's Friday close of 4,128 was its worst since Dec. 20. The Dow and S&P 500 are now trading under their simple 50-day moving averages. The 50-day average is a key barometer of investor confidence.

So, things look really lousy, right? Well, Yes and no.

The 14-day relative strength indexes for the Dow, S&P and Nasdaq are all under 40, which suggests two things: market weakness (of course) but also a market that's getting close to being oversold.

Top 10 Cheap Stocks For 2014

Still, last week's sell-off was a shock. It will take a little time for traders, corporate executives and consumers around the world to understand what really is going on.

That's why Monday's decent open has the potential to be disappoint, with a deeper pullback. For more than a year, pundits have been saying an 8 percent to 10 percent pullback is in the cards. There are, of course, the permabulls, who see a 50 percent collapse.

The S&P 500's biggest pullback in 2013 was only 5.76 percent, between May 21 and June 24 -- when Federal Reserve Chairman Ben Bernanke first started to talk about the central bank's reducing its bond buying from $85 billion a month. Interest rates pushed higher, with the 10-year Treasury yield piercing 3 percent. Bond and stock prices fell.  That is, until the Fed managed to convince markets that tapering its bond purchases did not immediately translate into higher interest rates.

An 8-percent-to-10 percent pullback is fairly normal. In 2012, the S&P 500 fell 10 percent in the spring. The index declined 8 percent after President Barack Obama was reelected. And, despite all that, the S&P finished the year up 13.4 percent.

The market pullback in the summer and early fall of 2011 was deeper, nearly 19 percent. And it took the Fed to bring some order to the mess in Washington, vowing to make sure the financial system had plenty of liquidity.

The week's earnings and economic events may not provide the fuel for a big rebound. Caterpillar (NYSE: CAT) reported better-than-expected earnings for the fourth quarter, even if sales were sluggish. There's Apple's earnings ahead and the Fed meeting, starting Tuesday. Most analysts see the Fed continuing to reduce its bond buying.

Results from truck-maker Paccar (NASDAQ: PCAR), toymaker Mattel (NASDAQ: MAT) and lumber-and-paper maker Weyerhaeuser (NYSE: WY) on Friday may offer a glimpse of what's ahead.

A real rebound will start perhaps in late February and early March, when it becomes clear that the Fed is serious about raising interest rates slowly. The currency problems will ease as well. China's economic condition will be clearer.

Most importantly, what's been a brutal winter will start to give way to spring. Economic activity has been slammed this month by blizzards, sub-zero temperatures, traffic disruptions and the like. The economic data for January won't be very good, adding to the disappointments with holiday spending.

But the crummy January data (and maybe February, weather depending) will be a temporary condition. It's likely there's a lot of pent-up demand, and when the weather improves, that demand will have to be satisfied. 

Posted-In: Ben Bernanke President Barack Obama Sell-off stocksNews Economics Federal Reserve Pre-Market Outlook Intraday Update After-Hours Center Markets Best of Benzinga

(c) 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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Apple Unveils Two New iPhones (AAPL)

After much anticipation surrounding its latest devices, on Tuesday Apple (AAPL) finally detailed the next products in its iPhone pipeline.

As many had expected, the company announced not one, but two new models. The iPhone 5S is the newest device with a number of upgrades over the older device. One of its most unique new features is a fingerprint scanner built into the home button that gives the user added security and ease of use.

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The second model that was shown was the iPhone 5C. This product will feature a price point of just $99 and will be marketed mainly towards overseas markets that wish to utilize the iPhone technology but not at the hefty price tag that comes with the device in the U.S. This move looks to directly chip away at Android devices, which have been dominating emerging markets for some time now.

Investors were apparently unimpressed with the new devices, as Apple’s stock was down $11.53, or 2.33%, at Tuesday’s close.

Why Coach (COH) Is Down Today

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NEW YORK (TheStreet) -- Coach (COH) was falling 6.98% to $48.83 at midday on Wednesday after the company reported second-quarter earnings that fell short of analysts' expectations.

The luxury brand reported a 9% drop in North American sales, which fell short of analysts' estimates on profit and revenue and brought down the company's second-quarter results. Coach reported second-quarter revenue of $1.42 billion, which marked a 6% decrease from the same period in the fiscal year 2013 and missed the analyst consensus of $1.5 billion.

Profit also fell from the same period last year to $297 million, or $1.06 a share, from $353 million, or $1.23 a share. This fell short of analysts' expectations of $1.11 a share.

"We continued to be disappointed by our performance in North America, which was impacted by substantially lower traffic in our stores and by our decision to limit access to our e-factory flash sales site," said new CEO Victor Luis in a company statement. Sales in China, on the other hand, rose approximately 25% and Coach is on schedule to meet its annual guidance of $530 million in the region, according to the report. TheStreet Ratings team rates Coach a "buy" with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation: "We rate COACH INC (COH) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, expanding profit margins and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income." Highlights from the analysis by TheStreet Ratings Team goes as follows: COH's debt-to-equity ratio is very low at 0.00 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.46, which illustrates the ability to avoid short-term cash problems. The gross profit margin for COACH INC is currently very high, coming in at 75.74%. Regardless of COH's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, COH's net profit margin of 18.93% compares favorably to the industry average. COACH INC reported flat earnings per share in the most recent quarter. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, COACH INC increased its bottom line by earning $3.62 versus $3.54 in the prior year. For the next year, the market is expecting a contraction of 4.7% in earnings ($3.45 versus $3.62). COH, with its decline in revenue, underperformed when compared the industry average of 18.4%. Since the same quarter one year prior, revenues slightly dropped by 0.9%. Weakness in the company's revenue seems to not be hurting the bottom line, shown by stable earnings per share. Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. Compared to other companies in the Textiles, Apparel & Luxury Goods industry and the overall market, COACH INC's return on equity significantly exceeds that of both the industry average and the S&P 500. You can view the full analysis from the report here: COH Ratings Report

Stock quotes in this article: COH 

Hot Heal Care Stocks To Watch For 2014

This year has been quite challenging for copper miners with declining demand for the metal and rising inventories. Disappointing results have in turn led to sharp downward estimates revisions, sending Taseko Mines to a Zacks Rank # 5 (Strong Sell).

About the Company

Headquartered in Vancouver, Canada, Taseko Mines Limited (TGB) owns and operates mining properties in Canada. The company currently produces copper and molybdenum.

Disappointing Results and Guidance

On May 2, 2013, Taseko reported it first quarter 2013 results. The quarter resulted in an adjusted loss of $2.9 million, down from net earnings of $3.1 million for the first quarter of 2013. On a per-share basis, the loss was $0.01 per share, below consensus.

Downwards Revisions

Due to disappointing results, quarterly and annual estimates have been revised sharply downwards in the past few weeks by analysts.

Zacks consensus estimate for the current quarter now stands at a negative $0.01 per share versus $0.04 per share, 60 days ago, while the full-year consensus estimate is $0.11 per share now, down from $0.21 per share.

Hot Heal Care Stocks To Watch For 2014: Sierra Wireless Inc(SW.TO)

Sierra Wireless, Inc., together with its subsidiaries, provides wireless solutions for the machine-to-machine (M2M) and mobile computing markets. It develops and markets various wireless products, including mobile broadband devices that comprise USB modems and mobile Wi-Fi hotspots that provide a way to connect notebooks, tablets, and other electronic devices to the Internet, over 3G and 4G mobile broadband networks; and wireless embedded modules to provide embedded 3G connectivity in the latest generation of the Lenovo ThinkPad professional-grade laptop computers. The company also offers intelligent gateways and routers for public safety, transportation, field service, energy, industrial, and financial organizations; and a cloud-based services platform, which delivers Web-based solutions and services that enable application providers, original equipment manufacturers (OEMs), and mobile network operators to develop, deploy, and operate complete M2M solutions for managing r emote equipment and assets. In addition, it provides professional services to OEM customers during their product development and launch process in built-in wireless connectivity for mobile computing devices and M2M solutions. The company offers its products to automotive, networking equipment, energy, security, sales and payment, industrial control and monitoring, fleet management, field service, healthcare, and consumer electronics industries, as well as businesses and consumers. It sells its products and solutions primarily through various indirect channels, such as wireless operators, distributors, and value-added resellers, as well as directly to OEMs and enterprises. Sierra Wireless, Inc. was founded in 1993 and is headquartered in Richmond, Canada.

Hot Heal Care Stocks To Watch For 2014: HARGREAVES LANSDOWN PLC ORD GBP0.004 WI(HL.L)

Hargreaves Lansdown plc provides independent financial and asset management services to private investors in the United Kingdom. The company?s services include stocks and shares ISA; self invested personal pension; fund and share accounts; multi manager funds; personal equity plans; Vantage, an investment service that gives the tools, information, and help to hold and manage investments comprising unit trusts, OEICs, equities, ETFs, bonds, investment trusts, and cash; anuuities; income drawdown; portfolio management services; currency services; spread betting and CFDs; enterprise investment schemes; and venture capital trusts. It also offers corporate wrap solutions; retirement services; unit trust equity and stock broking; investment fund and unit trust management; life and pensions consultancy; nominee services; and financial planning and advisory services. The company was founded in 1981 and is based in Bristol, the United Kingdom.

Best Canadian Companies To Watch For 2014: Flaherty & Crumrine Preferred Income Opportunity Fund Inc(PFO)

Flaherty & Crumrine Preferred Income Opportunity Fund Incorporated is a close-ended equity mutual fund launched and managed by Flaherty & Crumrine Incorporated. The fund invests in the public equity markets of the United States. It invests in stocks of companies operating in the finance and utility sector. The fund primarily invests in preferred stocks. It typically invests in securities with an average credit rating of BBB- by Standard & Poor's Corporation and Baa3 by Moody's Investors Services, Inc. The fund benchmarks the performance of its portfolio against S&P 500 Index and Barclays Capital U.S. Aggregate Index. Flaherty & Crumrine Preferred Income Opportunity Fund Incorporated was formed on December 10, 1991 and is domiciled in the United States.

Hot Heal Care Stocks To Watch For 2014: Goldcliff Resource Corporation(GCN.V)

Goldcliff Resource Corporation, a junior exploration company, engages in the acquisition and exploration of mineral properties in Canada. It holds 100% interests in the Panorama Ridge gold project covering an area of 8,980 hectares, located in the Nickel Plate mining district, Osoyoos Mining Division, British Columbia; and the Ainsworth silver project that covers an area of 10,280 hectares, located in the Kootenay mining district, Slocan Mining Division, British Columbia. The company also holds 100% interests in the Tulameen copper project comprising 26,333 hectares, located in the Princeton mining district, Similkameen Mining Division, British Columbia. Goldcliff Resource Corporation was founded in 1986 and is based in Vancouver, Canada.

Hot Heal Care Stocks To Watch For 2014: FutureFuel Corp. (FF)

FutureFuel Corp., through its subsidiary, FutureFuel Chemical Company, engages in the manufacture and sale of specialty chemicals and bio-based products primarily in the United States. The company operates in two segments, Chemicals and Biofuels. The Chemicals segment provides custom chemical manufacturing services for specific customers, such as bleach activators for detergent and consumer products manufacturers; proprietary herbicide and intermediates for life sciences companies; agrochemicals; and industrial and consumer products, such as cosmetics and personal care products, ink colorants, adhesion promoters, polymer additives, polymer and specialty dyes, specialty polymers, photographic and imaging chemicals, and food additives. This segment also manufactures and sells a range of performance chemicals, including a family of polymer (nylon) modifiers and small-volume specialty chemicals for various applications; a family of acetal-based solvents, consisting of diethoxy methane, dimethoxymethane, dibutoxymethane, and glycerol formal; and phenol sulfonic acid that build on sulfonations technology. Its chemical products are used in various markets and end uses, including detergents, agrochemicals, automotive, photographic imaging, coatings, nutrition, and polymer additives. The Biofuels segment produces and sells biodiesel, as well as petrodiesel in blends with or without biodiesel. This segment also operates a granary in central Arkansas that involves in the purchase and sale of agricultural commodities, primarily soybeans, rice, and corn. This segment markets its biodiesel products by truck and rail directly to customers. FutureFuel Corp. was formerly known as Viceroy Acquisition Corporation and changed its name to FutureFuel Corp. in 2006. FutureFuel Corp. was incorporated in 2005 and is based in St. Louis, Missouri.

Advisors' Opinion:

• [By Maxx Chatsko]

  3. Focus on efficiency
  A combination of factors plays a role in efficiently producing biodiesel. FutureFuel (NYSE: FF  ) , which owns an annual capacity of 59 million gallons to complement its niche chemical business, relies heavily on location. The company's two biorefineries don't have a nationwide infrastructure to aid in getting product to the market and are dependent on rail and barge access. Despite the FutureFuel's amazing progress is improving its process -- annual capacity jumped from just 35 million gallons in 2011 to 59 million gallons today -- the company admits that its relatively small operations may cease to exist given changes in feedstock prices, government mandates, and tax credits. �

The Benefits Of An Accelerated Bachelor's/Master's Degree

A master's degree is becoming increasingly valuable when it comes to working your way into a high-paying career, but there's a downside: two more years in school means more lost income and probably more student debt, as well. Accelerated master's degrees save majoring students the cost and study time of graduate admission tests, application fees and extra courses. By applying for an accelerated master's program, you can start taking courses toward your master's in your junior or senior year and get dual course credit for both your undergraduate and master's degree.

Accelerated Master's Program Admission Requirements
Accelerated master's degrees will often have tough admission standards and you generally have to wait until at least your undergraduate sophomore year to apply. Generally, a grade point average (GPA) above 3.5 is necessary for consideration, and preference is given for students already enrolled in that university, says Counsel of Graduate Schools Dean in Residence, Dr. Bill Weiner. The reason is that schools want to retain their upper echelon of students for their master's programs; students who experience academic success at their university in their undergraduate courses will likely do well in their graduate school.

Commitment
Before you enroll in an accelerated master's program, you will want to research your field thoroughly. You don't want to get all the way through a master's degree and then find out through work experience that you'd rather pursue a different career path. Thus, career planning begins today. Complete a summer internship, talk to your career counselors and academic advisors and arrange shadow days.

Academically, take at least one course in your major each semester. Join professional organizations with on-campus student chapters such as the American Marketing Association or Society of Professional Journalists. These organizations offer fantastic opportunities to network with professionals working in your potential career field.

Course Credit
Some courses may count toward both degrees in your senior year. Colleges have varying ranges for the time needed to complete your degree and the number of courses that will earn you dual credit, but the dual credit can help you complete a bachelor's degree in May and your master's as early as December of the same year.

For example, if you finish your undergraduate degree with 12 graduate credits and your master's degree requires 36 credits for completion, you could complete your graduate degree after your undergraduate graduation by taking 12 credits over the summer and 12 in the fall. If your university allows six dual-credit courses to count toward your degree with a 36-credit degree, you may not complete a master's in seven months, but at least you'll still have a six-credit head start.

You have to be extra diligent to earn at least a "B" in dual-credit courses. While a "C" in a course can earn you credit in a bachelor's program, many accelerated master's programs require "Bs" or above to earn credit and sometimes to avoid program expulsion.

Career Advancement
The difference between a bachelor's and a master's degree in job opportunities after graduation is tremendous. Dr. Weiner says that someone enrolled in an accelerated master's program in human resources could graduate as a hospital administrator instead of a human resources manager. Similarly, accounting majors need a master's degree to become CPAs. Plus, studies suggest that workers with master's degrees earn considerable more over the course of their careers.

Cost Savings
While annual costs vary by university, you can save a lot of money by reducing your school course requirements. The average cost of attendance in 2012-2013 (based on data from the National Center for Education Statistics), including tuition, fees, books and materials, and living expenses for first-year, full-time, undergraduate students at public schools is $20,700.

If you save six months by completing a semester's worth of credits during your undergraduate degree, you could save yourself more than $15,000. The actual amount you save will vary based on the cost of tuition at your school, scholarships and grants awarded, and the number of credits required for your master's degree.

Scholarships
Undergraduate scholarships are likely to cover graduate level courses that dually count towards your undergraduate degree. However, you will need to apply for new financial aid for when you officially graduate from the undergraduate portion of your program. As soon as you decide you want to pursue an accelerated master's degree program, meet with a financial aid counselor to discuss graduate school grants, Stafford Loans, scholarship programs and PLUS Loans. The earlier you begin your research, the better off you'll be.

The Bottom Line
If you know you want to pursue a master's degree, especially within your major, accelerated master's programs can save you time and money. However, finishing faster should never mean giving up career exploration opportunities. Be sure to solidify your career path with field study as soon as possible and do as many shadow days and work internships as you can manage. Balance your work experience by focusing on your GPA. With top-notch grades, education and internships, you'll sail into your first post-graduate position.

Mondelez International

Among more speculative ideas, our top pick for 2014 is a consumer staples company, making and marketing some of the world's best known sweets and treats; brands such as Oreo, Cadbury, Nabisco, Milka, Tang, and Trident are all category leaders, explains Eric Vermulm of InvesTech Market Analyst.

Thanks to these, and many other products, Mondelez International (MDLZ) holds the Number One global market share in biscuits (crackers and cookies), chocolate, candy, and powdered beverages, as well as the Number Two position in gum and coffee.

Mondelez's products are well-positioned in the snack food aisle, which is a leading growth area in the grocery store. Biscuits and snacks are seeing more rapid worldwide adoption, compared to other treat categories, such as ice cream, carbonated drinks, or baked goods.

With an estimated 40% of sales coming from emerging markets, MDLZ is benefitting from an emerging worldwide middle class with a taste for treats. Management currently expects rising demand to drive double-digit revenue growth in these markets, which should put total sales gains in the mid-single digits—near the top-end among its peers.

10 Best Financial Stocks To Watch For 2014

What truly sets MDLZ apart from other Consumer Staples companies is its potential to expand margins. MDLZ's operating margin of 12.2% in 2012 was well behind the 18.3% average of peers.

With management now completely focused on snack foods, after the October 2012 spin-off of Kraft Foods, efficiency initiatives and better distribution opportunities should compound single-digit revenue growth into double-digit earnings growth.

Looked at as a whole, Mondelez's world-class brands, expanding emerging market presence, and margin potential, provides a unique growth opportunity in the traditionally defensive Staples sector.

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Top 15 Best Foreign Countries for Retirement: 2014

For those with retirement around the corner or who are already retired, picking a place to retire could be a key element into how fulfilling, meaning financially comfortable, retirement will be. With many early boomers' retirement portfolios punished by the financial crisis and low interest rates, the choice of where to live is even more critical.

International Living magazine released the results of its most recent Global Retirement Index last week, with some familiar countries on the list and some new ones. The magazine bases it index on data gathered from editors, correspondents and experts living in the countries that it ranks.

International Living scored 24 countries in eight categories: real estate, special benefits, cost of living, ease of integration for foreigners, entertainment and amenities, health care, retirement infrastructure and climate.

The “special benefits” International Living considered include government provisions that make it easy for Americans to move to and live in each country. Things like discounts on health care, airfares, utilities, duty fees on imported goods, and property rights and taxes were considered. For the “ease of integration” category, International Living considered how widely English is spoken in the country, the friendliness of locals to foreign residents and the size of the current expat community.

Due to its proximity and similar time zones to the United States, Central and South America are obvious choices for retiree destinations, and several of the countries in the top 15 are from those regions.

(Check out Top 10 Best Foreign Countries for Retirement: 2013 on ThinkAdvisor.)

Of the 24 countries in the index, Cambodia was rated the lowest, with a score of 73.2. Although the country earned a score of 100 in cost of living, it rated a 57 and 58 in special benefits and retirement infrastructure, respectively.

15. Portugal: 82.4

14. Italy: 82.5

13. Nicaragua: 82.6

12. (tie) New Zealand: 83

12. (tie) Ireland: 83

10. Thailand: 83.5

International Living notes that retirees have several choices when it comes to where they want to live in Thailand, depending on what kind of lifestyle they want. The capital, Bangkok, is a major city, while the northern part of the country tends to be more peaceful and less expensive, with proximity to the country’s beaches a highlight of the south.

Wherever they decide to settle down, rent can be as low as $500 a month, and a doctor’s exam in a modern hospital will cost less than $40.

9. Uruguay: 83.7

Uruguay is the second smallest country in South America, and boasts extensive infrastructure and ease of access, according to International Living. It also has an established expat community.

8. Malta: 84.1

Malta, a tiny archipelago about 60 miles south of Sicily, is just over 120 square miles. Despite this, it has a modern airport on the main island of Malta that connects the country with Rome, about an hour away by plane. It has been a member of the European Union since 2004 and has been using the euro since 2008.

English is one of the official languages of Malta, and according to International Living, there are many hints to its 150-year history as a British colony, from red phone booths to driving on the left side of the road.

7. Mexico: 84.2

One of Mexico’s biggest attractions to retirees is the wide variety of lifestyles they can adopt there. Whether they’re looking to retire on a beach or in the city, expats will have as much to do as they want. The cost of living is low, and the ease of integration among the highest on the list.

6. Columbia: 84.2

Although technically tied with Mexico on its total score, Columbia earned the higher spot with a much higher rating in special benefits and retirement infrastructure, and slightly smaller gains in other categories.

International Living noted that Columbia is more developed than some other countries in Latin America, and cost of living and real estate are low.

5. Spain: 85.8

International Living called Spain the “best bargain in Europe.” That’s partly due to the recession, which has driven real estate prices down, but the magazine noted Spain has long been one of the least expensive countries in Europe. In some areas, utilities can be as little as $150, and while meat tends to be more expensive than in the United States, other items like produce, olive oil or wine can be very cheap.

Spain also has excellent private and public health care systems, with access to good hospitals even in rural parts of the country.

4. Costa Rica: 86.8

Costa Rica has long been a favorite destination for expat retirees. One reason is simply that it’s easy for retirees to move there. A couple needs just $1,000 per month in retirement income to qualify for residency.

Another major benefit is the affordability of health care. expats pay a monthly fee based on their income for care that’s free at the time of service.

3. Malaysia: 88.5

The highest-rated Asian country on the list, International Living found a couple can live well in a luxury condo on the coast for about $1,700 per month, including rent. It pointed to Penang Island and the capital, Kuala Lumpur, as centers of excellence in the health care industry.

In addition to having first-world infrastructure, retirees can move their household and car to Malaysia duty-free.

As for visas, retirees can stay in the country on a “social visit pass” that lasts 10 years and automatically renews for an additional 10 years when it expires. Foreign residents just need a fixed deposit of $46,707 and a monthly income from a government pension of at least $3,114.

2. Ecuador: 91.1

Less than one point behind the top spot, Ecuador was knocked out of the No. 1 position, but just barely. The excellent climate and low cost of living that made it the top place holder last year are still there, and International Living noted the country is working to improve its infrastructure. A $680 million airport opened outside Quito in February.

1. Panama: 91.2

International Living noted that Panama won the top spot “by a hair.” In addition to a range of retiree benefits, it has introduced new visas that make it easier to gain residence, and has made great steps to improve its infrastructure. It’s worth mentioning, too, that Panama is largely hurricane free (the last hurricane was Martha in 1969).

Panama uses the dollar, English is widely understood and expats don’t even need to bring electronic converters to use their gadgets.

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Related stories on ThinkAdvisor:

Microsoft Can't Quit Now

In nearly every metric, Microsoft's (NASDAQ: MSFT  ) Windows RT has failed to make a meaningful impact on the market. Even beyond Microsoft's struggles selling Surface RT, the Windows RT platform only grabbed an estimated 200,000 in worldwide shipments in the first quarter. That only registered a 0.4% unit market share. In terms of usage share, NetMarketShare estimates Windows RT at less than 0.00% share, which is not a typo.

Additionally, Intel's (NASDAQ: INTC  ) newest Haswell chips eliminate one of Windows RT's main advantages: battery life. Since Windows RT uses ARM-based chips, the devices initially enjoyed an advantage in power consumption. This year, Intel's latest and greatest put up incredible improvements in this department, giving consumers one less reason to consider Windows RT.

Investors might think it's time for Microsoft to reconsider Windows RT, but in reality the software giant can't give up on the platform now.

In some ways, Windows RT is a way for Microsoft to diversify in the age of low-cost mobile computing. With today's mobile devices continuing to see downward pricing pressure, there's simply not much room for Microsoft and Intel to play together like they used to. For instance, Moor Insights & Strategy analyst Patrick Moorhead considers Windows RT as a "hedge against Intel," which can be used to target lower price points.

You simply can't reach $200 to $300 price points if Windows 8 and Intel chips are involved. The 8-inch Acer Iconia W3 is the first device in the important small-sized category, which runs Windows 8 and is powered by an Intel Atom processor. It retails for $379, but despite the high price, it's poorly built. Acer had to cut corners elsewhere, like with the display.

Due to more competition within the ARM ecosystem, there is more price competition. Those lower prices inevitably translate into lower retail prices for tablets, which Microsoft will need to exploit to compete with Google Android tablets and Apple's iPad.

As Microsoft's big bet on ARM is a way to wean its reliance on Intel, the software giant has little choice but to keep trying with Windows RT.

It's incredible to think just how much of our digital and technological lives are almost entirely shaped and molded by just a handful of companies. Find out "Who Will Win the War Between the 5 Biggest Tech Stocks?" in The Motley Fool's latest free report, which details the knock-down, drag-out battle being waged by the five kings of tech. Click here to keep reading.

Dow Dips After Discouraging Housing Data

It's been a rocky start today for the Dow Jones Industrial Average (DJINDICES: ^DJI  ) , as the index has tumbled after a four-day rally. Investors may be shaken following the release of this morning's latest housing data, and with Fed Chairman Ben Bernanke set to speak later this afternoon, there's no way to know yet if their concerns will be pacified. Though the index has taken a bumpy yet precipitous dive, the losses are still manageable, with it sitting on a 29-point loss as of 11:30 a.m. EDT.

Housing in trouble? 
This morning's weekly report on new home-loan application activity was not what Wall Street wanted to hear. The housing rebound has been one of the slow but steady guiding lights to the overall economic recovery. Construction on new homes is up, and so are prices -- bringing hopeful buyers and sellers back to the market. As a driver for both personal and economic wealth, the continued improvements in the housing market have consistently kept investors' chins up when other data was discouraging.

So when this morning's report showed that higher interest rates had driven down new mortgage activity by 3% last week, it fueled the flames of investors' fears surrounding the eventual end to the current Fed stimulus policy. Though the rising rates had previously stalled new refinancing application activity, the new purchase applications had been faring better. The rates remain near all-time lows, and are still attractive based on historical trends -- but if the recent rise is deterring buyers now, what's to be expected as rates normalize following the Fed's stimulus tapering? Based on their reaction this morning, investors believe the result will be further losses on new buyers, which will stall the recovery in the housing market and overall economy.

The latest minutes from the Federal Open Market Committee meeting will be released at 2 p.m. EDT, followed by an unrelated speech from Bernanke shortly before the markets close. Though Bernanke is not speaking directly on the subject of the Fed's tapering plan, Wall Street will surely be looking for signs on next steps from both afternoon events and will trade accordingly.

Banks are taking it on the chin
With fears that new mortgage business will be stalled, the big banks are really taking a hit this morning. Dow components Bank of America (NYSE: BAC  ) and JPMorgan (NYSE: JPM  ) are down 1.41% and 0.53%, respectively. Though both are vying for a bigger slice of the new mortgage business, investors may be happy that their shares are small compared to that of the mortgage king, Wells Fargo  (NYSE: WFC  ) . The San Francisco-based bank controlled a whopping 29% of new mortgage originations in 2012, leaving investors concerned about the impact of a decline in new buyers to the market -- the bank's shares are down 1.91% so far in trading.

Though this news is a troubling sign, perhaps pointing to the "scary" volatility JPMorgan CEO Jamie Dimon alluded to last month when he discussed the changing rate environment, long-term investors should remember a few things. First, the 3% decline in new mortgage applications only represents the activity from one week, which included a federal holiday that closed financial institutions. Second, these big banks are fully aware of how the changes in interest rates will affect their businesses, and they still welcome the change. And finally, the current environment is favoring a short-term perspective with a heavy focus on the Fed. All three of these facts should tell you that a confident focus on the long-term viability of your investments is the best way to weather the current storm of uncertainty.

Regardless of the current market woes, many investors are still terrified about investing in big banking stocks after the crash. With constant rhetoric about Too Big to Fail and new regulations, it's hard to focus on the positive traits of banks as a viable investment option. But the sector has one notable standout whose consistency and strength have the ability to incite investor confidence. In a sea of mismanaged and dangerous peers, it rises above the rest as "The Only Big Bank Built to Last." You can uncover the top pick that Warren Buffett loves in The Motley Fool's new report. It's free, so click here to access it now.

Did BlackBerry Just Surrender to Apple and Android?

BlackBerry (NASDAQ: BBRY  ) had a busy Tuesday, as it made a plethora of major announcements at its BlackBerry Live conference. Perhaps most interestingly, the company announced that it's bringing two of its signature features -- BlackBerry Messenger and secure device management -- to devices running Apple's (NASDAQ: AAPL  ) iOS and Google's (NASDAQ: GOOG  ) Android.

From one perspective, these announcements seem like an admission of defeat from BlackBerry. By offering BBM and secure device management services on iOS and Android devices, BlackBerry is giving up some of its key differentiating factors vis-a-vis those platforms. However, it's also possible to see these announcements in a more positive light. By expanding its services beyond the BlackBerry platform, BlackBerry can engage new potential customers and better monetize the value of its intellectual property.

Opening up BBM
The BBM instant messaging service has long been one of BlackBerry's signature features, but its utility has been declining as BlackBerry's market share has dropped. BlackBerry wants to bolster BBM's value by making it available to iPhone and Android users; moreover, BBM will be a free app. While other cross-platform messaging systems like WhatsApp already exist, BBM has a strong base with 60 million users who send and receive 10 billion messages a day. This should help the BBM app become relatively popular.

Obviously, this move creates the risk that some BlackBerry subscribers will defect to one of the rival platforms, because they can now keep using BBM. However, the upside is much bigger, as making BBM available for free on rival platforms can expose iOS and Android users to BBM and (hopefully) rehabilitate the BlackBerry brand. If BlackBerry can persuade some iPhone users to adopt BBM rather than iMessage, it will also offset some of the platform stickiness that is BlackBerry's biggest long-term obstacle.

Eventually, BlackBerry may find a way to monetize BBM on non-BlackBerry devices. Even if it doesn't, the app will essentially provide free marketing for BlackBerry on rival platforms while also increasing the value of the BBM service for BB10 users.

Mobile device management
BlackBerry also announced on Tuesday that version 10.1 of its BlackBerry Enterprise Service was available for download. Whereas previous versions of BBES have just provided security and mobile device management for BlackBerry devices, the new version will also support iOS and Android devices.

In many ways, this is an even more important product for BlackBerry. The company has long been the leader in mobile device security, but the popularity of the iPhone and Android devices has forced governments and enterprises to find third-party solutions to secure employees' phones. The new BBES will allow companies with "bring your own device" policies to use a BlackBerry security solution running on a single server for all BlackBerry, iOS, and Android devices.

BBES 10.1 will let corporate IT departments to choose what applications are accessible to employees and will separate work and personal data on their devices. This essentially ports the "BlackBerry Balance" feature of the BB10 OS to iOS and Android.

From a business perspective, BBES could be quite lucrative as a mobile device management system. It's being positioned as a software-as-a-service offering, at $59 annually per device. Since most governments and enterprises have worked with BlackBerry (even if they now have BYOD policies), the company has an opportunity to take a leadership position in this market, which is expected to surpass $1 billion annually in the near future.

Foolish conclusion
By opening up its BlackBerry Messenger service and mobile security features to the iOS and Android platforms, BlackBerry is admitting that it's no longer a dominant player in the mobile market. However, that was already obvious from the company's shrinking market share. Supporting iOS and Android devices will allow BlackBerry to diversify away from its hardware business into new software and service opportunities. It could also help expose a new generation of consumers to the BlackBerry brand. Both of these initiatives seem like positive steps for BlackBerry's turnaround.

It's incredible to think just how much of our digital and technological lives are almost entirely shaped and molded by just a handful of companies. Find out "Who Will Win the War Between the 5 Biggest Tech Stocks" in The Motley Fool's latest free report, which details the knock-down, drag-out battle being waged among the five kings of tech. Click here to keep reading.

Iron Man's Hidden Power

The following video is from Monday's Investor Beat, in which host Chris Hill and analysts Jason Moser and Bill Barker dissect the hardest-hitting investing stories of the day.

Iron Man 3 flexes its muscle overseas and shares of Disney (NYSE: DIS  ) hit an all-time high. What does Disney's newest blockbuster mean for investors going forward? Should investors take stock in the entertainment giant? In this installment of Investor Beat, our analysts discuss Iron Man 3 and the future of Disney.

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.

Top 5 Energy Companies To Invest In Right Now

The relevant video segment can be found between 0:17 and 3:16.

Finra keeping pressure on complex products in 2014

Bloomberg News

Finra's opening salvo of 2014, its annual list of examination priorities, sent a clear message to broker-dealers, especially those dealing in complex products: Don't expect any relief in the new year.

The document, which Finra's approximately 4,200 member firms will review carefully to shape their compliance efforts in the coming year, re-emphasized common trouble spots for broker-dealers, while also ratcheting up enforcement in key areas, including interest-rate-sensitive products and rogue brokers.

“It's kind of like, 'We're going to look at everything like we always do every time,'” said Daniel Wildermuth, chief executive of Kalos Financial.

PRODUCT CONCERNS

Nontraded real estate investment trusts, complex structured products, emerging-markets investment funds, mortgage-backed securities, long-duration bond funds and municipal securities are among Finra's priorities in its monitoring program, according to the letter, which was posted on its website last Thursday.

Complex structured products have made the list every year since Finra began sending the letter out in 2006 under the National Association of Securities Dealers, so their inclusion came as little surprise, according to Joe Halpern, who runs Exceed Investments, a product development company focused on structured investments.

“Structured products will be on this list forever,” he said. “This whole list is a fair list of the complex products out there.”

The new twist this year was Finra's focus on fixed-income products and hedging products that could be susceptible to interest rate volatility. The regulator included investments such as long-duration bond funds and emerging-markets debt on its list of concerns.

“Finra remains concerned about the suitability of recommendations to retail investors for complex products whose risk-return profiles, including their sensitivity to interest rate changes, underlying product or index volatility, fee structures or complexity may be challenging for investors to understand,” Finra's letter stated.

Mr. Wildermuth, whose firm focuses on alternative investments and structured products, said he agrees with Finra's concerns that investors might not understand the impact of rising rates on these products, but he also said that Finra's regular inclusion of these products on its watch list continues to make it tough on firms that seek to employ these strategies legitimately.

“I don't disagree with interest rate sensitivity, but I do disagree with the assumption that they're boxing you into a corner that anything you do is suspect or suspicious,” he said.

Executives at Mr. Wildermuth'! s firm have found themselves trying to keep ahead of regulator demands. The firm hosts weekly two-hour due-diligence meetings and he said that one of the most helpful practices has been increasing its record keeping.

In the end, brokers have to take Finra's focus in stride, said the head of an industry trade group for the nontraded real estate investment trusts.

“There's not anything out of the ordinary there that has us concerned,” said Kevin Hogan, president and chief executive of the Investment Program Association. “I don't think there's undue scrutiny. It's their recognition that this product is not a mainstream stock or bond. There's some complexity.”

Mr. Hogan agrees with Finra that selling complex products requires enhanced training for sales representatives.

“Education and training is important to this industry in particular,” Mr. Hogan said.

Steven Thomas, director of compliance at Lexington Compliance, a division of RIA in a Box, said that financial advisers need to be even more careful with hedging products, what he calls “land mines” in a volatile interest-rate environment.

“If you haven't been vigilant in documenting why you've been recommending these products and strategies, you better reassess your process and procedures. Otherwise, you're going to get tagged [by Finra] for putting your clients in unsuitable investments,” said Mr. Thomas, former chief compliance officer for South Dakota. “If you've planted the land mines, you better not step backward.”

ROGUE BROKERS

Finra also said that it will expand a program implemented last year to target rogue brokers who land at new firms after being disciplined or fired.

“When Finra examines a firm that hires these high-risk brokers, examiners will review the firm's due diligence conducted in the hiring process, review for the adequacy of supervision of higher-risk brokers — including whether the brokers have been placed under heightened supervi! sion &mda! sh; based on the pattern of past conduct, and examiners will place particular focus on these brokers' clients' accounts in conducting reviews of sale practices,” the Finra letter states.

Mr. Thomas supports Finra's crackdown on brokers who have a history of disciplinary problems.

“There's not enough legitimate and accurate reporting about why someone has left a firm,” Mr. Thomas said. “Firms are afraid of defamation of character lawsuits.”

But he cautioned that the pipeline between the insurance and securities industries is not being monitored well enough, allowing problem insurance brokers to restart their careers at securities firms.

“There is not a national reporting system for insurance bad apples,” Mr. Thomas said. Like what you've read?

Alaska Supreme Court Denies Permanent Fund Dividend To Soldier Deployed To Iraq

The 172nd Infantry Brigade, the Arctic Wolves, had an extra long deployment in support of Operation Iraqui Freedom.  They were supposed to go for a year, but the year turned into 16 months, with some of the brigade's soldiers unexpectedly going back to Iraq after arriving home in Alaska.  The deployment went from August 2005 to November 2006.  The brigade received the Valorous Unit Award for its time in Iraq.  There were soldiers killed and wounded and the separation, unexpectedly extended, was surely hard on families.

Perhaps the extra penalty suffered by Richard Heller is not that large a matter.  Still it bugged him and it bugs me.

If Richard Heller had spent those 16 months at Fort Wainwright, then the home of the 178th Infantry Brigade, the Alaska Department of Revenue would have sent him a check for $1,106.96.  That would be the Permanent Fund Dividend paid in 2007 to eligible Alaska residents.  (As far as I know Alaska is the only state with a division of its Revenue Department dedicated to sending money to all its residents). Richard Heller arrived in Alaska on June 17, 2005, assigned to the Headquarters Company of the 172nd Stryker Brigade.  He promptly registered to vote, obtained an Alaska driver's license and changed his military records to indicate Alaska residency.

On August 14, 2005 Heller deployed to Iraq.  He did not return to Alaska until December 11, 2006.  In 2007, he applied for his permanent fund dividend.  He was turned down because he hadn't been in Alaska for much of 2006.  Generally, absence for military service does not affect permanent fund eligibility.  You only qualify for "excused absences", so to speak, after you have been in Alaska for 180 days.  So Heller was turned down.  Think about it.  If the Brigade had deployed in late December of 2005, he would have qualified.  So by spending a longer time in harm's way, he lost out. Before I discuss the decision I'll give you what Richard Heller wrote in his informal refund claim, which I find much more eloquent than the legalese of the decision.

I feel I am eligible, because it was not my choice to leave Alaska when I did.  I got here in June 05 and was deployed Aug o5 until Dec 06.  I would have much rather been in Alaska than in Iraq getting shot at and blown up on a monthly basis.  I understand what the regulations say, but the lady, I spoke to in the office in Fairbanks compared a college student coming and leaving as the same as me.  I don't see snipers and people blowing themselves up on the streets of Alaska.  Is this how all the vets that are in the same situation treated?

The Supreme Court decision was pretty much an "is what it is" reading of the statute, that brushed aside any constitutional issues.  There was a dissent that argued that the statute was an unconstitutional "durational residency requirement", since it treats new residents differently than established residents.  I don't know.  I was persuaded by Richard Heller's statement of the case.  What do you think?

You can follow me on twitter @peterreillycpa.

 

Where Will Starbucks Go Next?

With shares of Starbucks (NASDAQ:SBUX) trading around $76, is SBUX an OUTPERFORM, WAIT AND SEE, or STAY AWAY? Let's analyze the stock with the relevant sections of our CHEAT SHEET investing framework:

T = Trends for a Stock’s Movement

Starbucks is a roaster, marketer, and retailer of coffee operating worldwide. The company purchases and roasts the coffees it sells along with handcrafted tea and other beverages, as well as a variety of fresh food items through its stores. Starbucks sells a variety of coffee and tea products and licenses its trademarks through other channels such as stores and national food service accounts. In addition to its flagship Starbucks brand, the company's portfolio features Tazo Tea, Seattle's Best Coffee, Starbucks VIA Ready Brew, Starbucks Refreshers beverages, and the Verismo System by Starbucks. Starbucks has developed a solid reputation over the past several years, which has generated a lot of buzz for its products.

It's understood that when customers go to Starbucks in the morning they want to get caffeinated, but did you know that some go to get carbonated, too? A recent report from Quartz reveals that the coffee giant has been secretly testing out a new market since last spring, one for "handcrafted sodas." According to Quartz, Starbucks baristas in certain locations have been letting customers choose to carbonate juices, sodas, and a selection of coffee and tea beverages, and the company has been happy with the consumer feedback.

T = Technicals on the Stock Chart Are Mixed

Starbucks stock has been exploding to the upside in recent years. The stock is currently pulling back and may need time to consolidate before heading higher. Analyzing the price trend and its strength can be done using key simple moving averages. What are the key moving averages? The 50-day (pink), 100-day (blue), and 200-day (yellow) simple moving averages. As seen in the daily price chart below, Starbucks is trading between its rising key averages, which signals neutral price action in the near term.

Source: Thinkorswim

Taking a look at the implied volatility (red) and implied volatility skew levels of Starbucks options may help determine if investors are bullish, neutral, or bearish.

	Implied Volatility (IV)	30-Day IV Percentile	90-Day IV Percentile
Starbucks options	25.99%	96%	93%

What does this mean? This means that investors or traders are buying a very significant amount of call and put options contracts as compared to the last 30 and 90 trading days.

	Put IV Skew	Call IV Skew
January Options	Average	Average
February Options	Average	Average

As of Tuesday, there is average demand from call and put buyers or sellers, all neutral over the next two months. To summarize, investors are buying a very significant amount of call and put option contracts and are leaning neutral over the next two months.

On the next page, let’s take a look at the earnings and revenue growth rates and the conclusion.

E = Earnings Are Increasing Quarter-Over-Quarter

Rising stock prices are often strongly correlated with rising earnings and revenue growth rates. Also, the last four quarterly earnings announcement reactions help gauge investor sentiment on Starbucks’ stock. What do the last four quarterly earnings and revenue growth (Y-O-Y) figures for Starbucks look like and more importantly, how did the markets like these numbers?

	2013 Q3	2013 Q2	2013 Q1	2012 Q4
Earnings Growth (Y-O-Y)	36.96%	27.91%	27.5%	14%
Revenue Growth (Y-O-Y)	12.81%	13.26%	11.26%	10.59%
Earnings Reaction	0.27%	7.61%	-0.82%	4.1%

Starbucks has seen increasing earnings and revenue figures over the last four quarters. From these numbers, the markets have been pleased with Starbucks’s recent earnings announcements.

P = Average Relative Performance Versus Peers and Sector

How has Starbucks stock done relative to its peers – Dunkin’ Brands (NASDAQ:DNKN), McDonald’s (NYSE:MCD), and Green Mountain Coffee Roasters (NASDAQ:GMCR) — and sector?

	Starbucks	Dunkin’ Brands	McDonald’s	Green Mountain Coffee Roasters	Sector
Year-to-Date Return	42.47%	47.54%	6.3%	85.53%	46.46%

Starbucks has been an average relative performance leader, year-to-date.

Conclusion

Top Canadian Companies To Own For 2014

Starbucks provides in-demand coffee and tea products and services to consumers around the world. The company has been secretly testing out a new market since last spring, one for "handcrafted sodas." The stock has been exploding to the upside in recent years but is currently pulling back. Over the last four quarters, earnings and revenues have been increasing, which has pleased investors in the company. Relative to its peers and sector, Starbucks has been an average year-to-date performer. Look for Starbucks to continue to OUTPERFORM.