Raj Rajaratnam loses bail bid - prison beckons

NEW YORK (CNNMoney) -- Raj Rajaratnam is headed for the Big House.

The former hedge fund manager, convicted in May of insider trading, lost his bid Thursday to remain free pending his appeal.

As a result of the federal appeals court ruling, Rajaratnam is required to report on Monday to begin serving his 11-year prison term, the longest ever in an insider trading case.

It's expected that Rajaratnam will serve his sentence at the Federal Medical Center Devens in Massachusetts. Rajaratnam is a diabetic with "imminent kidney failure" and will need a transplant during his prison stay, according to the federal judge who sentenced him.

Rajaratnam's defense lawyer, Terence Lynam, declined to comment.

Rajaratnam managed $7 billion at his Galleon Group hedge fund before it shut down following his indictment in 2009. He has also been fined $93 million by the Securities and Exchange Commission in connection with the case, the largest fine against an individual in SEC history.

In June, a federal jury convicted three others in the Galleon insider trading case, including former trader Zvi Goffer and co-defendants Emanuel Goffer and Michael Kimelman. 

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Intel: Bull, Bear Continue Tussle on Q4 Cut

Shares of Intel (INTC) are down 37 cents, or 1.5%, at $23.63 as analysts continue to debate the implications of the company’s cut in its Q4 outlook yesterday morning, which Intel attributed to disruptions of the disk drive supply chain as a result of floods in Thailand.

There was already a healthy debate on the matter yesterday, as I related, with one downgrade of the stock, from Needham & Co.’s Quinn Bolton.

This morning, Canaccord Genuity’s Bobby Burleson, who has a Hold rating on the shares and a $24 price target, writes this morning that there are other issues beyond simply hard drives crimping PC shipments.

“While we acknowledge supply disruption to be severe and likely to worsen in Q1,” he writes, “we see additional negative issues with demand softening for motherboard makers and ODMs while component inventories build downstream.”

On the other hand, Kaufman Brothers’s Mike Burton reiterates a Buy rating this morning, in light of “the stock’s reasonable valuation and high dividend yield.”

“In addition, it is our belief that the HDD situation is short term in nature, and already well understood, hence we recommend that investors with a long-term investment horizon should buy INTC shares on any incremental weakness.”

Craig Ellis with Caris & Co., who also has a Buy rating on the shares, writes today that there’s still lots that’s positive to look forward to for Intel, with 22-nanometer chips coming in 2012 and the “Ultrabook” laptop/tablet product cycle getting underway, as well as “Romley” server chips.

And Ellis believes that supply of PCs, not demand, really is the issue here:

Notably: a) INTC sees 4Q sell-through leading to qq PC unit growth, b) o! ur pre-h oliday store checks point to solid PC traffic and demand especially w/Corei3 product, and c) Taiwan sls data QTD through November is supportive of prior INTC guidance. By 3Q12 we think PC Client recovers return near prior levels with Europe the greatest risk. Overall, our PC Client C12 Y/Y growth falls to +4.0% from +7.6%.

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Melco Crown Entertainment Ltd (ADR) achieved New Top Price of 12 months - NASDAQ:MPEL

Melco Crown Entertainment Ltd (ADR) (NASDAQ:MPEL) achieved its new 52 week high price of $12.91 where it was opened at $12.71 UP 0.10 points or +0.79% by closing at $12.77. MPEL transacted shares during the day were over 7.25 million shares however it has an average volume of 10.10 million shares.

MPEL has a market capitalization $6.80 billion and an enterprise value at $8.00 billion. Trailing twelve months price to sales ratio of the stock was 2.34 while price to book ratio in most recent quarter was 2.66. In profitability ratios, net profit margin in past twelve months appeared at 0.32% whereas operating profit margin for the same period at 4.26%.

The company made a return on asset of 1.58% in past twelve months and return on equity of 0.36% for similar period. In the period of trailing 12 months it generated revenue amounted to $2.88 billion gaining $5.41 revenue per share. Its year over year, quarterly growth of revenue was 42.10%.

According to preceding quarter balance sheet results, the company had $558.84 million cash in hand making cash per share at 1.05. The total of $1.80 billion debt was there putting a total debt to equity ratio 71.11. Moreover its current ratio according to same quarter results was 1.32 and book value per share was 4.76.

Looking at the trading information, the stock price history displayed that its S&P500 52 Week Change illustrated 28.55% where the stock current price exhibited up beat from its 50 day moving average price of $10.93 and remained above from its 200 Day Moving Average price of $8.54.

MPEL holds 532.81 million outstanding shares with 169.84 million floating shares where insider possessed 32.01% and institutions kept 21.50%.

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Is Sears' Stock Cheap or Expensive by the Numbers?

Numbers can lie -- but they're the best first step in determining whether a stock is a buy. In this series, we use some carefully chosen metrics to size up a stock's true value based on the following clues:

  • The current price multiples.
  • The consistency of past earnings and cash flow.
  • How much growth we can expect.

Let's see what those numbers can tell us about how expensive or cheap Sears Holdings (Nasdaq: SHLD  ) might be.

The current price multiples
First, we'll look at most investors' favorite metric: the P/E ratio. It divides the company's share price by its earnings per share -- the lower, the better.

Then, we'll take things up a notch with a more advanced metric: enterprise value to unlevered free cash flow. This divides the company's enterprise value (basically, its market cap plus its debt, minus its cash) by its unlevered free cash flow (its free cash flow, adding back the interest payments on its debt). Like the P/E, the lower this number is, the better.

Analysts argue about which is more important -- earnings or cash flow. Who cares? A good buy ideally has low multiples on both.

Sears has negative P/E and EV/FCF ratios over the trailing 12 months. If we stretch and compare current valuations to the five-year averages for earnings and free cash flow, Sears has a P/E ratio of 22.7 and a five-year EV/FCF ratio of 14.9.

A positive one-year ratio under 10 for both metrics is ideal (at least in my opinion). For a five-year metric, under 20 is ideal.

Sears has a mixed performance in hitting the ideal targets, but let's see how it compares against some competitors and industry mates.?

Company

1-Year P/E

1-Year EV/FCF

5-Year P/E

5-Year EV/FCF

Sears NM NM 22.7 14.9
J.C. Penney (NYSE: JCP  ) 34.4 17.3 13.0 19.9
Target (NYSE: TGT  ) 12.0 33.8 13.3 22.9
Wal-Mart (NYSE: WMT  ) 12.0 19.9 13.9 22.0

Source: S&P Capital IQ; NM = not meaningful due to losses.

Numerically, we've seen how Sears's valuation rates on both an absolute and relative basis. Next, let's examine...

The consistency of past earnings and cash flow
An ideal company will be consistently strong in its earnings and cash flow generation.

In the past five years, Sears's net income margin has ranged from -0.8% to 2.4%. In that same time frame, unlevered free cash flow margin has ranged from -0.6% to 3.8%.

How do those figures compare with those of the company's peers? See for yourself:

anImage

Source: S&P Capital IQ; margin ranges are combined.

Additionally, over the last five years, Sears has tallied up three years of positive earnings and four years of positive free cash flow.

Next, let's figure out...

How much growth we can expect
Analysts tend to comically overstate their five-year growth estimates. If you accept th! em at fa ce value, you will overpay for stocks. But while you should definitely take the analysts' prognostications with a grain of salt, they can still provide a useful starting point when compared to similar numbers from a company's closest rivals.

Let's start by seeing what this company's done over the past five years. Due to losses, the trailing growth rate for Sears isn't meaningful. Here's how its peers performed:

anImage

Source: S&P Capital IQ; EPS growth shown.

And here's how it measures up with regard to the growth analysts expect over the next five years: 75% for Sears, 15% for JC Penney, 11% for Target, and 10% for Wal-Mart. If you're excited about Sears' crazy-high growth estimate, remember that Sears is currently unprofitable, so the estimate is most likely off a very low adjusted base.

The bottom line
The pile of numbers we've plowed through has shown us the price multiples shares of Sears?are trading at, the volatility of its operational performance, and what kind of growth profile it has -- both on an absolute and a relative basis.

The more consistent a company's performance has been and the more growth we can expect, the more we should be willing to pay. We've gone well beyond looking at a negative P/E ratio, and we see that Sears' five-year price multiples are better than its one-year multiples. However, it's not encouraging that Sears has slipped into unprofitability both on an earnings and free cash flow basis. My fellow Fool Sean Williams isn't excited about its prospects, and it's only rated one star (out of five) by our CAPS community.

However, if you find Sears' numbers or story compelling, don't stop. Continue your due diligence process until you're confident one way or the other. As a start, add it to My Watchlist to find all of our Foolish analysis.

To see the stocks! that I' ve researched beyond the initial numbers and bought in my public real-money portfolio, click here.

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Petrobras to Get Chinese Dollars (PBR, SNP, XOM, CVX)

The China Development Bank appears to be following the maxim of uber-capitalist Warren Buffet: Be fearful when others are greedy, and be greedy when others are fearful. This week the Chinese announced an agreement to lend $25 billion to Russia for the construction of a crude oil pipeline that would provide them 300,000 barrels/day of crude for 20 years.? Now, the bank has announced an agreement to lend $10 billion to Petroleo Brasiliero, aka Petrobras, (NYSE:PBR) to develop the massive Santos basin discovery offshore Brazil.

In exchange for the loan, China Petroleum & Chemical Corporation, aka Sinopec (NYSE:SNP), will receive up to 100,000 b/d of crude from Petrobas? for 10 years.? China’s state-owned energy company, China National Petroleum Corporation (CNPC), may also be included, for another 60,000 b/d.

China’s quest for secure energy supplies has been going on for at least four years, pretty much ever since the country’s foreign exchange surplus started to explode. The country has already invested in Venezuela, Bolivia, and several African and Mideast projects. The deals share a common theme: Chinese cash in exchange for guaranteed supplies of oil and natural gas.

Every time China makes one of these deals, a hint of doom hits the US media. Is China going to buy up all the world’s oil and leave the US and the rest of the world without enough to meet their needs? Well, no, that’s not going to happen.

In the agreement with Petrobras, China will pay market prices for the oil it gets. As the price for crude rises (and it surely will), Petrobras makes more profit and, ultimately, could fund further development of Santos out of its own pocket. Or, more likely, it will find other partners, say, Exxon Mobil Corporation (NYSE:XOM) or Chevron Corporation (NYSE:CVX) that would like to toss a few billion in the pot in exchange for some barrels. As a result, China’s access to Brazil’s crude is only as strong as th! e curren t balance in the country’s checkbook.

At present, China has a large balance in its checking account, but with its exports falling and domestic demand drying up, it faces some serious economic problems of its own. The country’s ability to invest huge sums in energy developments going forward depends on a global economic recovery and an increase in domestic consumer spending.

Brazil has big plans for developing the Santos basin, and it is pushing Petrobras to make deals like this one with China. The estimated resource is 80 billion barrels, and Petrobras expects to spend nearly $175 billion in the next five years to explore and develop the field. Chinese dollars will prime the pump, but its not likely that they will buy the pump.

Paul Ausick
February 20, 2009

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MassMutual Introduces Pension Scorecard to Compare LDI, Traditional Portfolios

MassMutual announced Tuesday that it has launched a pension funding scorecard that allows its defined-benefit plan sponsors and advisors to compare the quarter-by-quarter performance of a liability-driven investing portfolio with a traditional 60% equity/40% fixed income portfolio. Both portfolios are compared with the MassMutual Pension Liability Index, which is based on aggregating data from defined-benefit plans on MassMutual's Retirement Services platform.

"We are seeing a clear trend among pension plan decision-makers to take a closer look at pension funding volatility. LDI can provide a more predictable approach to managing pension plan assets and liabilities," Marc Condon, assistant vice president and actuary for MassMutual's Retirement Services Division, said in a statement. "The Pension Funding Scorecard provides a detailed picture of how well LDI portfolios have tracked pension liabilities compared to traditional 60/40 portfolios."

In addition to historical returns, the scorecard will also provide definitions of common terms and answers to frequently asked questions about liability-driven investing.

On Wednesday, MassMutual announced that it has launched a new multi-asset fund that combines investment types from across the risk/return spectrum. The MassMutual Barings Dynamic Allocation Fund includes stocks and bonds from developed and emerging economies, real estate and commodities.

The fund is managed by Baring International Investment Limited, a London-based affiliate of MassMutual with over $12 billion in assets under management.

"Markets may deliver returns unevenly through the business cycle, so a multi-asset approach can be effective in helping balance risk and return for investors, with reduced volatility, through a combination of strategic and tactical asset allocation," Mike Eldredge, vice president of investment management for MassMutual's Retirement Services Division, said in a statement. "The flexibility of this approach may make this Fund suitable for those seeking active management of their asset allocation holding with the goal of real returns.”

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(MJGCF, GTS, GBLHF, PGR) Stock in Focus by DrStockPick.com

MAJESTIC GOLD CORP (MJGCF.PK)

MAJESTIC GOLD CORP (MJGCF.PK) engages in the exploration and development of mineral properties in China. The company focuses on its gold project located in the prolific gold region of Song Jiagou in eastern Shandong Province. Majestic Gold Corp. is headquartered in Vancouver, Canada.

MAJESTIC GOLD CORP (MJGCF.PK) has arranged a $10,000,000 loan to advance its Song Jiagou project in China. Nine million dollars ($9,000,000) from the proceeds from the loan will be used by the Company to in connection with its Song Jiagou project and the balance of one million dollars ($1,000,000) for general working capital purposes.

The loan will have a one year term and loan principal will be convertible at the option of the lender in whole or in part into common shares (”Shares”) of the Company until twelve months from the date of the loan advance at the price of $0.205 per Share. The loan will bear interest at the rate of 7.5% per annum, payable on maturity, and accrued and unpaid interest will be convertible at the option of the lender in whole or in part into shares of the Company until twelve months from the date of the loan advance at Market Price at the time of conversion.

The lender is at arm’s length from the Company and will not become an insider as a result of any conversion of principal and interest. All shares issued on any conversion of loan principal or interest will be subject to a four month hold period from the date of advance of loan proceeds. The loan is subject to acceptance by the TSX Venture Exchange.

As additional consideration for the loan, the Company has agreed to forward at least $9 million to Majestic Yantai Gold Ltd., a British Virgin Islands company owned 94% by the Company to be used to further advance its Song Jiagou project. The Borrower has also agreed to a 90 day period for reciprocal due diligence reviews and discussions for the possible further involveme! nt of th e Lender in the Song Jiagou project.

In the event that no further agreement is reached between the Lender and the Company during the 90 day period, then the loan and a minimum of seven (7) months interest will automatically convert to shares in the Company at a price of $0.205 per share and the interest at Market Price respectively. In addition the Company is pleased to announce that it has arranged a non-brokered private placement of up to 15,000,000 shares to be issued at the price of $0.20 per share for gross proceeds of $3,000,000.

The most important industrial use of gold is in the manufacture of electronics. Did you know a standard touchtone telephone typically contains 33 gold-plated contacts? Contacts are electroplated with a very thin film of gold. It ensures rapid dispersion of heat while protecting it against detrimental tarnishing that typically occurs over the life of the device. Gold is the highly efficient conductor that can carry tiny currents and remain free of corrosion ensuring a high level of reliability. A small amount of gold is used in almost every sophisticated electronic device. This includes: cell phones, calculators, personal digital assistants, global positioning system units and other small electronic devices. Most large electronic appliances such as television sets also contain gold.

For more information about MAJESTIC GOLD CORP. visit its website: http://www.majesticgold.net

Triple-S Management Corporation (NYSE:GTS) announced that Ramon M. Ruiz-Comas, President and Chief Executive Officer, will present to investors and financial analysts at the Credit Suisse 2011 Healthcare Conference in Phoenix, AZ on November 10, 2011. The presentation will be broadcast live through the Internet at 2:00 p.m. Eastern Time.

Triple-S Management Corporation, through its subsidiaries, operates as a managed care company in Puerto Rico. It provides health benefits services to subscribers through contracts with hospitals, physicians, dentists,! laborat ories, and other organizations.

Global Hunter (GBLHF.PK)

Copper was known to ancient civilizations, and is said to have been mined for more than 5000 years. Copper is a reddish color and takes on a bright sheen. It is malleable and ductile. The greatest percentage of copper used is in electrical equipment such as wiring and motors. Brass and bronze are both copper alloys and are extensively used. All American coins are now copper alloys, and gun metals also contain copper. Copper is a good conductor of heat and electricity - hence its use in the electrical industry. It is resistant to air and water.

Global Hunter’s focus is on strategic and base metals, with an advanced stage copper oxide project in Chile and a highly prospective molybdenum property in British Columbia, Canada. GBLHF teams are working on developing the Corona de Cobre property in Chile and the Rabbit south property in British Columbia.

Global Hunter Corp. (GBLHF.PK) is pleased to announce initial assay results from its previously announced surface sampling program. The results are encouraging with new gold showings as well as very positive copper oxide assays over wide-spread areas.

Highlights of the entire program
9 mineralized shear and/or alteration zones sampled total of 13.5 kilometers of strike length along know copper bearing shear and alteration zones tested with 205 rock chip samples
Good grades of soluble copper (oxide) over a significantly large area have been identified, however they represent only about 50% of the total copper grade indicating a mixed oxide-sulphide zone. Numerous iron oxide structures have also been mapped but no iron assays have been received to date.

The Company is planning to re-assay samples for iron to determine if iron is present in significant quantities to represent another target.

For more information http://www.globalhunter.ca

Progressive Corp. (NYSE:PGR) will host a ! one-hour conference call on Tuesday, November 8, 2011, beginning at 9:00 a.m. eastern time. On November 7, 2011, Progressive expects to file its Quarterly Report on Form 10-Q with the Securities and Exchange Commission and post its Shareholders’ Report.

The Progressive Corporation, through its subsidiaries, provides personal and commercial automobile insurance, and other specialty property-casualty insurance products and related services primarily in the United States.

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Something to Watch With Broadcom

Broadcom (Nasdaq: BRCM  ) carries $2.2 billion of goodwill and other intangibles on its balance sheet. Sometimes goodwill, especially when it's excessive, can foreshadow problems down the road. Could this be the case with Broadcom?

Before we answer that, let's look at what could go wrong.

AOL blows up
In early 2002, AOL Time Warner was trading for $66.27 per share.

It had $209 billion of assets on its balance sheet, and $128 billion of that was in the form of goodwill and other intangible assets. Goodwill is simply the difference between the price paid for a company during an acquisition and the net assets of the acquired company. The $128 billion of goodwill in this case was created when AOL and Time Warner merged in 2000.

The problem with inflating your net assets with goodwill is that it can -- being intangible, after all -- go away if the acquisition or merger doesn't create the amount of value that was expected. That's what happened in AOL Time Warner's case. It had to write off most of the goodwill over the next few months, and one year later that line item had shrunk to $37 billion. Investors punished the stock along the way, sending it down to $27.04 -- or nearly a 60% loss.

In his fine book It's Earnings That Count, Hewitt Heiserman explains the AOL situation and how two simple metrics can help minimize your risk of owning a company that may blow up like this. Let's see how Broadcom holds up using his two metrics.

Intangible assets ratio
This ratio shows us the percentage of total assets made up by goodwill and other intangibles. Heiserman says he views anything over 20% as worrisome, "because management might be overpaying for the acquisition or acquisitions that gave rise to the goodwill."

Broadcom has an intangible assets ratio of 27%.

This is not so far over Heiserman's threshold as to cause panic, but y! ou'll wa nt to keep an eye on this number over the next few quarters. It's also useful to compare it to tangible book value, which I explain below.

Tangible book value
Tangible book value is simply what remains after subtracting goodwill and other intangibles from shareholders' equity (also known as book value). If this is not a positive value, Heiserman advises you to avoid the company because it may "lack the balance sheet muscle to protect [itself] in a recession or from better-financed competitors."

Broadcom's tangible book value is $3.9 billion, so no yellow flag here.

Foolish bottom line
To recap, here are Broadcom's numbers, as well as a bonus look at a few other companies in its industry:

Company

Intangible Assets Ratio

Tangible Book Value (in millions)

Broadcom 27% $3,942
EZchip Semiconductor (Nasdaq: EZCH  ) 39% $139
Qualcomm (Nasdaq: QCOM  ) 18% $20,420
Marvell Technology Group (Nasdaq: MRVL  ) 37% $2,873

Source: S&P Capital IQ.

If you own Broadcom, or any other company that fails one of these checks, make sure you understand the business model and management's objectives. You can never base an entire investment thesis on one or two metrics, but there is a yellow flag here. I'll help you keep a close eye on these ratios ! over the next few quarters by updating them soon after each earnings report.

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Michigan unemployment rate falls below 10%

NEW YORK (CNNMoney) -- In another sign of the turnaround of the U.S. auto industry, the unemployment rate in Michigan has dropped below 10% November, the first time it's been that low in three years.

Figures released by the state Monday put unemployment at 9.8%, down from 10.6% in October and 11.4% a year ago. The last time unemployment was below 10% in the state was November 2008, when federal bailouts and bankruptcies loomed for General Motors (GM, Fortune 500) and Chrysler Group. Unemployment in the state peaked at 14.1% in August and September of 2009.

Earlier this year GM, Ford (F, Fortune 500) and Chrysler were all profitable -- the first time that's happened since 2004.

As auto sales have rebounded along with profitability, the auto sector has added 6,200 jobs over the 12 months ending in October. Overall manufacturing jobs in Michigan reached 500,000 in November, adding 21,000 from the previous year.

Still, while the unemployment rate fell sharply in November there was relatively little gain in actual employment compared to October. Only 1,000 jobs were added and those were spread across different sectors.

The big one-month drop in the unemployment rate was due more to unemployed workers moving out of the state, retiring, or not actively searching for a job during the month.

The Michigan results mirrored the drop in national unemployment, reported earlier this month, that was helped by modest gains in payrolls coupled with a drop in those people actively looking for work.

Still with a gain of 59,000 jobs over the last 12 months, 2011 is poised to be the first year that Michigan has added jobs since 2000. 

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Here's the Options Play on BMC Software

The following video is part of a special series in which Motley Fool analyst Eric Bleeker and "Options Whiz"?Jeff Fischer discuss how to make 2012 the year YOU master the market.

In this edition, Eric and Jeff analyze BMC Software. The company has a strong underlying business but is a bit of a turnaround story as it reorganizes its sales division. In the video below, Jeff describes how investors can protect downside while waiting for BMC to complete its sales overhaul.

For more details on how to trade BMC using similar options strategies with as much potential or more, just click here.

You'll be directed to the Motley Fool Options Whiz -- our interactive "Options U" designed to teach you to trade options sensibly, with a minimum of risk, and all the resources of The Motley Fool behind you -- all 100% FREE!

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WEF Report: Wake Up Call For Developed Nations On Financial Development

The World Economic Forum (WEF) report on financial development index provided a wake up call to the reality as the United States and United Kingdom failed to retain their position in world ranking. The recent report on financial development index indicated that Hong Kong toppled U.S. to reach the pinnacle in the index.

The latest news comes amidst fear of the developed nations struggling to hold their nerves in world economic scenario even as the developing or emerging markets are slowly raising their heads and their importance will be felt very much in the years to come. The report also strengthens the views of a possible shift in power in a changing scenario.

Normally, the U.S. and the U.K. occupies the top two slots in the financial development index and it is for the first time that Hong Kong dethroned the two developed nations to come top with a score of 5.16. WEF's fourth annual Financial Development Report released on December 13 revealed this.

Though the U.S. slipped in the ranking, its overall score remained almost in tact for 2011 compared to previous year. A significant point made by the report is that the U.S. was able to offset the global financial stability weakness with strong financial intermediation results. Major strengths attributed to this was highly developed foreign exchange and derivatives markets besides the strong M&A and securitization activities.

But in the case of U.K., the country suffered a jolt in both the counts, i.e. ranking as well as scoring due to weaker score on securitization and IPO activity. The U.K. slipped in ranking to third, while the score for 2011 is 5.00.

Generally, there were not major changes among the rest of the top 10 in the latest year's ranking. Singapore slipped to fourth spot on account of securitiztion markets drying up besides a weakening banking system. However, Australia, Canada and the Netherlands retained their positions at 5th, 6th and 7th place respectively, while Japan an! d Switze rland swapped their positions in 8th and 9th place. Norway jumped into the top 10 due to a favorable change in strong IPO activity among other factors.

The WEF's Financial Development Reports concentrates on a set of long-term actions that will help the overall development of financial systems. The forum also analyzed 60 financial systems and capital markets worldwide to arrive at this ranking.

The forum's chief operating officer for USA Kevin Steinberg, commented, "While Western financial centers are understandably focused on short-term challenges, this Report should serve as a wake-up call that their long-term leadership may be in jeopardy."

Interestingly, 90 percent of the countries surveyed by WEF have not come back from pre-crisis levels in terms of access to capital. There was no respite from the challenges to finance economic growth especially on the back of weak access to credit and financing from local equity markets. This indicates that the financial turmoil inflicted a couple of years ago on the back of sub prime crisis, which percolated to a bigger crisis, is refusing to die down despite best efforts by global leaders. Unless the financial crisis is completely resolved, the economic development around the world will continue to have its effect either directly or indirectly.

The WEF summed up its fourth annual report by indicating that overall economic scenario has unfavorably affected the access to capital by firms, while not ruling out the corporate governance factor influencing the scenario. Also, the report found that corporate governance witnessed a downside during the last four years, whether it is developed or emerging economies. This indicates that corporate governance issues are worldwide and not restricted to advanced economies. But it will prove to be a major concern for the emerging markets as the region is expected to play a crucial role in future growth of economic development.

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BASF, Deutsche Bank, Mediaset, UniCredit: Europe Equity Preview

The following companies�� shares mayhave unusual moves in European trading. Stock symbols are inparentheses.

The Stoxx Europe 600 Index rose 0.5 percent to 237.30. TheStoxx 50 Index gained 0.7 percent to 2,303.06. The Euro Stoxx 50Index (SX5E), a benchmark measure for nations using the euro, slumped0.4 percent to 2,260.98.

BASF SE (BAS GY), Electricite de France SA (EDF) , OAOGazprom (GAZP) and Eni SpA (ENI) have applied to Germanauthorities to start a joint venture for their planned SouthStream pipeline to transport gas to Europe from Russia,Financial Times Deutschland reported, without saying where itobtained the information. BASF shares declined 1 percent to51.10 euros. EDF lost 2.3 percent to 18.23 euros, while Enigained 0.6 percent to 15.79 euros.

Deutsche Bank AG (DBK GY) and UniCredit SpA (UCG) :Deutsche Bank and Italian lender UniCredit��s German division arecanceling securities deposit accounts with U.S. customers afternew regulations in the country led to higher costs, FinancialTimes Deutschland reported, without saying where it got theinformation. Deutsche Bank fell 0.8 percent to 27.76 euros,while UniCredit dropped 3.8 percent to 73 euro cents.

Mediaset SpA (MS) : Italy��s competition watchdog may givepreliminary approval to the broadcaster��s purchase of DigitalMultimedia Technologies SpA (DMT) on certain conditions, newsagency Radiocor reported, citing a document issued by theregulator. Mediaset gained 1.8 percent to 2.09 euros. DigitalMultimedia jumped 2.2 percent to 16.30 euros.

Standard Chartered Plc (STAN) : The U.K.��s second-biggestlender by market value plans to increase takeover financing forIndian companies, as it seeks to gain market share in mergeradvisory business in emerging markets at the expense of rivalsweakened by Europe��s credit crisis. The shares fell 1 percent to1,406 pence.

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Will iGo Power Your Portfolio?

The shares of iGo (NASDAQ: IGOI), a provider of accessories and power management solutions for the electronics industry, have been hot this week after last Friday's SEC filing, in which the company's CEO, Michael Heil, announced a purchase of 100,000 shares.

The stock jumped sharply higher on Monday from $0.87 to as high as $1.25 per share and is still trading above $1 per share despite giving up most of the gains on Tuesday. iGo has had a significant downtrend this year, as the stock is down about 80 percent from its highs of $5 per share in January. However, the insider share purchase indicates that iGo's future might hold something that is going to reverse the bearish trend.

Most notably, iGo is jointly developing a new chip, the iGo Green, with Texas Instruments (NYSE: TXN).

��What we're doing is developing a chip that manufacturers of laptop computers and home gaming systems, for example, could embed into the power adaptors that ship with their products,�� iGo spokesperson Tony Rossi told Benzinga this morning. ��By using our chip they'll be able to reduce the amount of standby power that their products consume.��

According to Rossi, the iGo Green may be in a class all its own. ��Nobody does this right now,�� he said. ��There are a number of other chip companies that have what are called power management products �C chips that help control the amount of energy utilized by devices. But nobody has anything that's directly comparable. But companies like Power Integrations (NASDAQ: POWI) are certainly players in this field.��

While laptops and game consoles could soon take advantage of this technology, don't expect to see it in tablets or other small, portable devices anytime soon.

��We're not aiming for tablets because they're not huge consumers of standby power,�� Rossi explained. ��Standby power, if you don't really know, is energy that is drawn from the outlet even when a device doesn't need it. So when you think about a laptop computer or a home gaming console! like a Wii, they have those big brick power adaptors. That's typically the sign of a device that consumes a lot of standby power. Your smaller electronic devices don't typically have those types of power adaptors and they don't consume as much standby power, so it's not really a significant issue for [tablets].��

New Products: Alkaline Rechargeable Batteries

In addition to the iGo Green chip, which is due in the first quarter of 2012, iGo has also developed a slate of rechargeable alkaline batteries.

��Most rechargeable batteries on the market are nickel metal hydride,�� said Rossi. ��We're the only ones with a rechargeable alkaline battery. The difference is, one, our alkaline batteries don't have any toxicity in them. Nickel rechargeable batteries have a toxic metal in them. And ours are much lower cost.��

Rossi said that you can buy a four-pack of iGo's rechargeable alkaline batteries for about $8, while the average price of a four-pack of regular (disposable) alkaline batteries is about $4.99, ��depending on where you get them.��

��After about two charging cycles [with iGo batteries], you've already made your money back,�� he said. ��You can get up to as many as 20 recharges off of our batteries, so over the life of them you can save around $90 by using rechargeable batteries.��

That, of course, assumes you can actually find the batteries in store. ��There's quite a bit of obstacles to building that business because there's essentially a duopoly in the disposable battery market between Duracell and Energizer (NYSE: ENR),�� said Rossi. ��They would prefer that consumers don't use rechargeable batteries because it cuts into their businesses, and they have relationships with retailers and apply pressure to them to not carry rechargeable batteries.

��We think we have a good product and we're steadily building out the distribution for it, but there are certainly some impediments to getting broad distribution, but we're slowly grinding away at it.��

ACTION ITEMS:

Bullish:

The traders who believe that iGo Green will be a game changer might want to go long iGo. Additionally, Texas Instruments might benefit from the success of iGo Green.

Bearish:

The traders who think that iGo Green and rechargeable batteries will not be as great of a success story as the company expects may want to either short iGo or go long one the battery makers, such as Energizer.

Story and interview co-authored by Louis Bedigian and Tuomo Kallio.

You can follow us on Twitter: @LouisBedigian and @TuomoKallio

Neither Benzinga nor its staff recommend that you buy, sell, or hold any security. We do not offer investment advice, personalized or otherwise. Benzinga recommends that you conduct your own due diligence and consult a certified financial professional for personalized advice about your financial situation.

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Funds See Strong Third Quarter '09 Results, Lipper Says

Equity funds had three consecutive months of positive returns, their strongest third quarter (+16.79 percent) in over 30 years, according to Tom Roseen, Lipper's research manager for the United States and Latin America.

"Since the market bottom around March 9, 2009, equity funds rose an almost-unprecedented 65.20 percent, significantly chipping away at the devastating losses witnessed during the recent market carnage," explains the Denver-based analyst.

For the one-year period ending September 30, though, equity funds remained in the red, down 3.10 percent. Some of the steam was let out of the market during late-September after mixed economic data was released, Roseen says.

On the heels of the big run-up in equities, investors took some money off the table with news about worse-than-expected existing home sales, durable goods orders and new home sales. Then, investors anxiously awaited the third-quarter reporting season, discounting the decline in jobless claims and improving consumer confidence levels.

The CBOE Volatility Index (VIX) fell a bit from the previous quarter-end (26.35) and ended the third quarter at 25.61. In July, investors cheered better-than-expected second quarter earnings, with the vast majority of the companies topping expectations, and the market remained buoyed by encouraging reports on both new and existing home sales for June and a rise in durable goods orders.

During the dog days of summer, investors cautiously bid up equity issues as economic data showed continued signs of improvement: durable goods orders, new home sales, housing prices, and consumer confidence beat consensus estimates in August.

For the quarter the Dow and the Nasdaq posted handsome returns, rising 14.98 percent and 15.66 percent, respectively, and tacking on 2.27 percent and 5.64 percent for the month of September.

Likewise, some 98 percent of all equity and mixed-equity funds posted plus-side returns and all but one of Lipper's 78 equity classifications posted positive returns. For the month of September, 98 percent of all equity and mixed-equity funds posted returns in the black, with the average equity fund gaining 4.94 percent.

For the quarter, the dollar lost ground against the euro (-3.48%) and the yen (-6.64%) but gained against the pound (+3.00 percent). Commodity prices gained some ground: near-crude oil prices rose a mere 1.02 percent to close the quarter at $70.61 per barrel, and gold added on 8.73 percent to end the quarter at $1,008.00 an ounce.

The equity funds tally for the third quarter looked similar to last quarter's, with two exceptions: real-estate funds -- up 32.53 percent -- posted their strongest quarterly return in over 30 years, and diversified-leveraged funds added 32.44 percent to last quarter's value, taking the number two spot.

For the month of September, Latin American funds (+13.96 percent), gold-oriented funds (+12.25 percent) and emerging-markets funds (+9.12 percent) classifications jumped to the head of the class, and Japanese funds (-2.29 percent) and dedicated short-bias funds (-7.90 percent) declined.

World equity funds (+18.76 percent) took top honors within the four broad fund breakouts for the quarter, followed by sector equity funds (+18.32 percent), U.S. diversified equity funds (+15.76 percent) and mixed-equity funds (+12.68 percent).



For the second quarter in a row and for the fifth quarter in seven, value-oriented funds (+18.64 percent) topped the other style categories, with growth-oriented funds (+15.59 percent) lagging. For the second quarter in three, mid-cap funds (+18.79 percent) outpaced the other capitalization groups, with large-cap funds (+15.00 percent) lagging.

Small-cap value funds posted the strongest return of Lipper's style-based funds, gaining 21.39 percent for the quarter, and mid-cap value funds (+21.04 percent) posted their strongest quarterly return in over 30 years. For September, small-cap growth funds (+6.86 percent) led the way, while large-cap value funds (+3.5 percent) lagged. Since March 9 Lipper's U.S. diversified equity macro-group has climbed 61.03 percent, but its one-year return is still down 5.39 percent.

Investors looking for yield and bargains bid up securities in the sector-equity funds (+18.32 percent) macro-classification, which posted the second-best quarterly return of Lipper's four macro-classification breakouts.

Real-estate funds (+32.53 percent, their best quarterly return in over 30 years), global real-estate funds (+25.17 percent), and global financial-services funds (+23.25 percent) stayed on top. With weakness in the dollar, a rise in oil prices, and general market skittishness toward September's end, both gold-oriented funds (+12.25 percent) and natural-resource funds (+8.77 percent) jumped to the head of the class, while financial-services funds (+2.26 percent) and commodities funds (+2.34 percent) were at the bottom of the heap.

Since the market bottom, global financial-services funds and U.S. financial-services funds have rallied 117.16 percent and 113.90 percent, respectively.

World Equity

For the second consecutive quarter, the world equity funds (+18.76 percent) macro-classification had the strongest return of Lipper's four macro-classification breakouts. Since March 9, the macro-group has rallied 74.76 percent, with Latin American funds gaining 114.83 percent during the period. Aided by a weakening dollar and an improving economic picture, these funds also had the strongest return (+28.11 percent) in the macro group for the third quarter, while Japanese funds (+6.79 percent) lagged.

Ten Largest Funds

American Funds Growth rose 13.38 percent in the third quarter and 27.05 percent in the first nine months of the year, while the American Funds Capital World Growth and Income ticked up 18.76 percent in the third quarter and 27.08 percent in the first nine months of 2009.

The Vanguard Total Stock Index moved up 16.46 and 21.58 respectively, and the Fidelity Contrafund 13.91 and 20.37.

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McDonald’s Corporation achieved New Top Price of 12 months - NYSE:MCD

McDonald’s Corporation (NYSE:MCD) achieved its new 52 week high price of $96.47 where it was opened at $96.37 UP 0.20 points or +0.21% by closing at $95.70. MCD transacted shares during the day were over 4.02 million shares however it has an average volume of 5.58 million shares.

MCD has a market capitalization $97.92 billion and an enterprise value at $108.06 billion. Trailing twelve months price to sales ratio of the stock was 3.71 while price to book ratio in most recent quarter was 7.34. In profitability ratios, net profit margin in past twelve months appeared at 20.34% whereas operating profit margin for the same period at 30.49%.

The company made a return on asset of 15.86% in past twelve months and return on equity of 39.80% for similar period. In the period of trailing 12 months it generated revenue amounted to $26.40 billion gaining $25.37 revenue per share. Its year over year, quarterly growth of revenue was 13.70% holding 8.60% quarterly earnings growth.

According to preceding quarter balance sheet results, the company had $2.40 billion cash in hand making cash per share at 2.35. The total of $12.54 billion debt was there putting a total debt to equity ratio 94.02. Moreover its current ratio according to same quarter results was 0.87 and book value per share was 13.04.

Looking at the trading information, the stock price history displayed that its S&P500 52 Week Change illustrated 1.73% where the stock current price exhibited up beat from its 50 day moving average price $92.72 and remained above from its 200 Day Moving Average price $87.38.

MCD holds 1.02 million outstanding shares with 1.02 million floating shares where insider possessed 0.07% and institutions kept 71.20%.

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Read the Fed statement

NEW YORK (CNNMoney) -- This is the statement of the minutes of the Federal Open Market Committee meeting released Dec. 13, 2011.

Information received since the Federal Open Market Committee met in November suggests that the economy has been expanding moderately, notwithstanding some apparent slowing in global growth.

While indicators point to some improvement in overall labor market conditions, the unemployment rate remains elevated. Household spending has continued to advance, but business fixed investment appears to be increasing less rapidly and the housing sector remains depressed. Inflation has moderated since earlier in the year, and longer-term inflation expectations have remained stable.

Consistent with its statutory mandate, the Committee seeks to foster maximum employment and price stability. The Committee continues to expect a moderate pace of economic growth over coming quarters and consequently anticipates that the unemployment rate will decline only gradually toward levels that the Committee judges to be consistent with its dual mandate.

Strains in global financial markets continue to pose significant downside risks to the economic outlook. The Committee also anticipates that inflation will settle, over coming quarters, at levels at or below those consistent with the Committee's dual mandate. However, the Committee will continue to pay close attention to the evolution of inflation and inflation expectations.

To support a stronger economic recovery and to help ensure that inflation, over time, is at levels consistent with the dual mandate, the Committee decided today to continue its program to extend the average maturity of its holdings of securities as announced in September.

Fed prepares for QY: Quantitative yakking

The Committee is maintaining its existing policies of reinvesting principal payments from its holdings of agency debt and agency mortgage-backed securities in agency mortgage-backed securities and of rolling over maturing! Treasur y securities at auction. The Committee will regularly review the size and composition of its securities holdings and is prepared to adjust those holdings as appropriate.

The Committee also decided to keep the target range for the federal funds rate at 0 to 1/4 percent and currently anticipates that economic conditions--including low rates of resource utilization and a subdued outlook for inflation over the medium run--are likely to warrant exceptionally low levels for the federal funds rate at least through mid-2013.

The Committee will continue to assess the economic outlook in light of incoming information and is prepared to employ its tools to promote a stronger economic recovery in a context of price stability.

Voting for the FOMC monetary policy action were: Ben S. Bernanke, Chairman; William C. Dudley, Vice Chairman; Elizabeth A. Duke; Richard W. Fisher; Narayana Kocherlakota; Charles I. Plosser; Sarah Bloom Raskin; Daniel K. Tarullo; and Janet L. Yellen. Voting against the action was Charles L. Evans, who supported additional policy accommodation at this time. 

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U.S. Delay on Climate-Change Deal Prompts Backlash From Europe to Barbados

President Barack Obama��s positionthat dangerous global warming can be avoided without deeper cutsin fossil-fuel emissions before 2020 has prompted a backlash incountries from Norway to Barbados.

There are ��multiple pathways�� to prevent temperaturesfrom rising 2 degrees Celsius (3.6 degrees Fahrenheit) withoutcountries strengthening pledges to reduce greenhouse gases by2020, U.S. climate envoy Jonathan Pershing said at UnitedNations climate talks last week.

��It��s a very risky assumption, too risky,�� Norway��s topclimate change envoy, Henrik Harboe, said in an interview. ��Weknow we are far below the recommendations of science.��

The question of when the world acts to contain globalwarming is at the heart of the talks in Durban, South Africa,where delegates from more than 190 nations are working on how totake the next steps in curbing emissions after the limitsoutlined in the Kyoto Protocol expire next year.

The UN says pledges to cut greenhouse gases need to doubleby 2020 to contain warming to 2 degrees above preindustriallevels. While scientists say a rise of 1.5 degrees may lead to��dangerous�� climate shifts, countries have agreed to takesteps to ensure warming doesn��t exceed the 2-degree mark.

��There are no credible scientific scenarios that willallow temperatures to be held under 2 degrees if action is takenafter 2020,�� Selwin Hart, an envoy from Barbados, said in aninterview in Durban.

Ice Ages

Over the past million years, warming of 4 degrees has beenenough to pull the world out of ice ages, according to theNational Aeronautics and Space Administration in Washington.Scientists say an average temperature rise of 1.5 degrees to 2.5degrees will trigger droughts and extreme weather, putting asmany as 30 percent of plant and animal species at risk ofextinction.

��Even with 2 degrees Celsius it��s not going to be a visionof paradise,�� Rajendra Pachauri, chairman of the UN��sIntergovernmental Panel on Climate Change, said in an intervi! ew.If em issions continue on a rising trajectory, the gain thiscentury could be as much as 6.4 degrees, he said.

U.S. envoy Todd Stern says it sees the goal as an��important and serious goal�� that should guide efforts tocontrol climate change.

��Look at Science��

��That is different from looking at it as an operationalcap that you must meet,�� Stern said at a briefing yesterday.��I think you have as you look at science and you see thetrajectory it ought to inform our sense of what needs to bedone. We don��t see it as akin to a national target.��

The U.S.��s position means ��much, much steeper reductions��will be needed by countries after 2020, Keya Chatterjee,director of climate negotiations for WWF, said in an interview.��It would really strain the edges of what would be doable.��

The biggest polluters are debating this week how and whento cut fossil fuel emissions.

The European Union said it won��t agree to continue underthe 1997 Kyoto Protocol, whose first phase of emissions cutsexpire next year, unless all countries agree to forge a newlegally binding agreement in 2015.

The U.S. says it won��t agree because China, the world��sbiggest emitter, and other fast-growing economies aren��t willingto do their equal share under such a pact. Instead, the U.S.suggests countries should focus on a voluntary measures reachedlast year.

��Dangerous for Humanity��

��A legally binding agreement after 2020 would bedisastrous for humanity, global temperature will rise at least 4degrees-plus,�� Bangladesh Environment Minister Hasan Mahmudsaid in an interview.

The Paris-based International Energy Agency said last monththat delaying a global deal to protect climate is a ��falseeconomy�� because costs to deal with increasing greenhouse gasesin the atmosphere will surge.

��You can postpone action, but the costs will be muchhigher, and the impacts would be far more serious. The costskeep going up for every year of delay,�� Pachauri said.

For every! $1 of i nvestment avoided before 2020, anadditional $4.30 would need to be spent after 2020 to compensatefor the increased emissions, the IEA said in its World EnergyOutlook on Nov. 9.

If current pledged energy policies around the world areimplemented, the planet is on a trajectory for warming of 3.5degrees Celsius, it said.

��If you look at the science and you look at economicanalysis, what it tells you if you delay action by a couple ofyears, then it makes it much more expensive,�� Artur Runge- Metzger, the lead European Union envoy at the talks, said in aninterview.

Alden Meyer of the Union of Concerned Scientists say theU.S.��s position in effect means the world is ��taking a pass forthe next decade.��

��If we do that we��ve blown any chance of staying below 2degrees, maybe 3 degrees,�� he said.

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BioLineRx (BLRX) to Develop Drug Candidates Discovered by Compugen

BioLineRx Ltd. (Nasdaq: BLRX)?is a clinical stage biopharmaceutical development company focused on identifying, licensing and developing promising therapeutic drugs. The company's current pipeline consists of drugs that help patients with central nervous system diseases, cancer, cardiovascular and autoimmune diseases.

The company announced today that it has entered into a collaboration agreement for the purpose of developing and commercializing mutually selected, Compugen-discovered drug candidates for the treatment of various diseases. According to the agreement, Compugen will provide drug candidates, primarily peptides, which were identified as promising using its predictive drug discovery platforms.

BioLineRx will develop these drug candidates through Phase II clinical trials, with the goal of ultimately licensing them to pharmaceutical companies for advanced clinical development and commercialization.

The joint venture has been initialized with the selection of three Compugen-discovered peptides. Two of the peptides named CGEN-855 and CGEN-856 have already undergone animal studies and will enter BioLine's main product pipeline as VL-7070. These peptides focus on preventing and treating cardiovascular disease by controlling inflammation and reducing hypertension.

The third peptide, CGEN-25017, has also undergone animal studies and will enter BioLine's pipeline as BL-8010, and is intended for the treatment of diseases characterized by excessive growth of new blood vessels, such as cancer.

For additional information about BioLineRx and its exciting drug pipeline, please visit the company's website at www.biolinerx.com

Article written by QualityStocks �� Visit www.QualityStocks.net for more emerging growth companies to discover and evaluate.

For Quality Stocks full disclaimer, visit the company's Web site

Is Skyworks' Stock a Bargain by the Numbers?

Numbers can lie -- but they're the best first step in determining whether a stock is a buy. In this series, we use some carefully chosen metrics to size up a stock's true value based on the following clues:

  • The current price multiples.
  • The consistency of past earnings and cash flow.
  • How much growth we can expect.

Let's see what those numbers can tell us about how expensive or cheap Skyworks Solutions (Nasdaq: SWKS  ) might be.

The current price multiples
First, we'll look at most investors' favorite metric: the P/E ratio. It divides the company's share price by its earnings per share -- the lower, the better.

Then, we'll take things up a notch with a more advanced metric: enterprise value to unlevered free cash flow. This divides the company's enterprise value (basically, its market cap plus its debt, minus its cash) by its unlevered free cash flow (its free cash flow, adding back the interest payments on its debt). Like the P/E, the lower this number is, the better.

Analysts argue about which is more important -- earnings or cash flow. Who cares? A good buy ideally has low multiples on both.

Skyworks has a P/E ratio of 13.1 and an EV/FCF ratio of 9.7 over the trailing 12 months. If we stretch and compare current valuations to the five-year averages for earnings and free cash flow, Skyworks has a P/E ratio of 23.7 and a five-year EV/FCF ratio of 16.9.

A positive one-year ratio under 10 for both metrics is ideal (at least in my opinion). For a five-year metric, under 20 is ideal.

Skyworks has a mixed performance in hitting the ideal targets, but let's see how it compares against some competitors and industry mates.?

Company

1-Year P/E

!

1-Year EV/FCF

5-Year P/E

5-Year EV/FCF

Skyworks 13.1 9.7 23.7 16.9
Analog Devices (NYSE: ADI  ) 12.3 10.1 17.1 12.3
Hittite Microwave (Nasdaq: HITT  ) 19.2 15.6 26.7 21.2
Linear Technology (Nasdaq: LLTC  ) 12.8 12.1 17.5 13.9

Source: S&P Capital IQ.

Numerically, we've seen how Skyworks' valuation rates on both an absolute and relative basis. Next, let's examine...

The consistency of past earnings and cash flow
An ideal company will be consistently strong in its earnings and cash flow generation.

In the past five years, Skyworks' net income margin has ranged from 7.8% to 16%. In that same time frame, unlevered free cash flow margin has ranged from 6.7% to 23%.

How do those figures compare with those of the company's peers? See for yourself:

anImage

Source: S&P Capital IQ; margin ranges are combined.

Additionally, over the last five years, Skyworks has tallied up five years of positive earnings and five years of positive free cash flow.

Next, let's figure out...

How much growth we can expect
Analysts tend to comically overstate their ! five-yea r growth estimates. If you accept them at face value, you will overpay for stocks. But while you should definitely take the analysts' prognostications with a grain of salt, they can still provide a useful starting point when compared to similar numbers from a company's closest rivals.

Let's start by seeing what this company's done over the past five years. Because of losses, Skyworks' trailing EPS growth rate isn't meaningful. Here's how its peers have done for trailing five-year growth:

anImage

Source: S&P Capital IQ; EPS growth shown.

And here's how it measures up with regard to the growth analysts expect over the next five years:

anImage

Source: S&P Capital IQ; estimates for EPS growth.

The bottom line
The pile of numbers we've plowed through has shown us the price multiples shares of Skyworks?are trading at, the volatility of its operational performance, and what kind of growth profile it has -- both on an absolute and a relative basis.

The more consistent a company's performance has been and the more growth we can expect, the more we should be willing to pay. We've gone well beyond looking at a 13.1 P/E ratio, and we see that Skyworks has maintained profitability while it's ridden on the coattails of Apple. The initial numbers look pretty enticing, but this is just a start. Remember that when you live by the Apple, you can also die by the Apple.

But this is just a start. If you find Skyworks' numbers or story compelling, don't stop. Continue your due diligence process until you're confident one way or the other. For an update on its pending merger with Advanced Analogic Technologies, clic! k here. Then, add Skyworks to My Watchlist to find all of our Foolish analysis.

To see the stocks that I've researched beyond the initial numbers and bought in my public real-money portfolio, click here.

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7 Perks Students Can Get for Good Grades

As finals approach and the first half of the 2011-12 school year draws to a close, we round up a variety of incentives that businesses are offering students who earn good grades. Here are some freebies a good report card can net you.

Pizza and soft drink
Pizza Hut(YUM) will give elementary and middle school students that earn three As (or an equivalent mark) a free personal pizza and small soft drink when they present their report cards to a manager. The offer is valid at participating locations for dine-in only.

Video game tokens
Students can exchange good grades for up to 15 game tokens at their local Chuck E. Cheese, as long as they also make a food purchase.

Movie rentals
Blockbuster will give out one free non-new release movie to students in grades K-12 who present a report card with a collective B average grade (Satisfactory, 2.7 GPA or 80% grade) or better to a manager on duty. Family Video also lets students from kindergarten through college earn one free overnight rental of a movie or video game for each A (or equivalent mark) they get in any core subject. Cookies
Ohio-based bakery chain Cheryl's gives students who present their report cards at retail locations a cookie for each A earned.

Doughnuts
Krispy Kreme(KKD) is known to give out free sweets to students of all ages who get good grades. The number of treats you are eligible to get varies by location.

Kids' meal
Teachers should consider participating in Applebee's A is for Apple program, which provides educators with gift certificates for free kids' meals that the educators can then give to students as an incentive for students to achieve a specific goal.

What other freebies can students score that aren't necessarily contingent on good grades? Find out! in this MainStreet roundup!

>To submit a news tip, email: tips@thestreet.com.

Follow TheStreet on Twitter and become a fan on Facebook.

>To order reprints of this article, click here: Reprints

Analysts Upgrade Shares of these Basic Materials Companies This Month

Wall St. Watchdog reveals information about companies for which stock analysts upgraded shares in the Basic Materials sector for the week ending December 9th, 2011.

  • Polypore Intl (NYSE:PPO): BB&T Capital Mkts upgraded its rating on this company from Hold to Buy and changed its price target to $70 on Dec 5th. The shares recently traded at $47.59, down $3.1, or 6.12% since the analyst��s rating. About the company: Polypore International, Inc. develops, manufactures, and markets specialized polymer-based membranes used in separation and filtration processes. The Company serves customers globally with manufacturing facilities in North America, Europe, and Asia. Get the most recent company news and stock data here >>
  • Boardwalk Pipeline (NYSE:BWP): Morgan Keegan upgraded its rating on this company from Mkt Perform to Outperform on Dec 5th. The shares recently traded at $27.71, up $0.5, or 1.84% since the analyst��s rating. About the company: Boardwalk Pipeline Partners, LP transports, gathers, and stores natural gas. The Company owns and operates interstate pipeline systems that either serve customers directly or indirectly throughout the northeastern and southeastern United States. Get the most recent company news and stock data here >>
  • Atwood Oceanics (NYSE:ATW): Morgan Keegan upgraded its rating on this company from Mkt Perform to Outperform on Dec 7th. The shares recently traded at $40.19, down $1.06, or 2.57% since the analyst��s rating. About the company: Atwood Oceanics, Inc. performs contract drilling of exploratory and development oil and gas wells in offshore areas, and provides related support, management, and consulting services. The Company also provides labor, supervisory, and consulting services to operator-owned platform rigs in Australia. Get the m! ost rece nt company news and stock data here >>
  • Comstock (NYSE:CRK): Oppenheimer upgraded its rating on this company from Perform to Outperform and changed its price target to $30 on Dec 7th. The shares recently traded at $17.87, down $2.16, or 10.78% since the analyst��s rating. About the company: Comstock Resources, Inc., an independent exploration and production company, acquires, develops, produces, and explores oil and natural gas properties. The Company��s oil and natural gas reserves are located in the Gulf of Mexico, Texas, and Louisiana. Get the most recent company news and stock data here >>
  • Western Refining (NYSE:WNR): RBC Capital Mkts upgraded its rating on this company from Outperform to Top Pick and changed its price target from $22 to $20 on Dec 8th. The shares recently traded at $12.40, down $0.03, or 0.24% since the analyst��s rating. About the company: Western Refining, Inc., through a subsidiary, refines crude oil and markets petroleum products. The subsidiary primarily produces gasoline, diesel, and jet fuel. The products are marketed in Arizona, New Mexico and Texas in the United States, and Juarez, Mexico. Get the most recent company news and stock data here >>

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LSI, Marvell: Craig-Halllum Cuts Ratings; Waiting For PC Cycle

Craig-Hallum analyst Christian Schwab this morning downgrad both LSI (LSI) and Marvell (MRVL) to Accumulate from Buy. He trims his price targets to $6.75 from $8.50 for LSI, and to $22, from $24, for MRVL.

“We believe additional stock price appreciation from current levels will be drive more by positive earnings revisions rather than P/E multiple expansion,” he writes in a research note, adding that “it will be difficult for Marvell and LSI to meaningfully exceed Street expectations in the near term.” He notes that both companies have improved gross margins materially over the last year; and he notes that they are heading into the seasonally slowest part of the year.

Schwab points out that both companies have heavy exposure to the disk-drive industry, accounting for about half of Marvell’s revenues, and about quarter of revenues for LSI. “Until we have further evidence on the strength of a PC replacement cycle as well as continued improvement in enterprise spending, we do not see meaningful upside potential to the stocks,” he writes.

In today’s trading:

  • LSI is down 8 cents, to $6.25.
  • MRVL is down 22 cents, to $20.55.

9 Steps To Thrive In A Slowing Economy

Increasingly, it looks like the U.S. economy is intrinsically strong but not the economies of our trading partners and international customers. In addition to economic weakness in the Euro zone, there's the Arab Spring and its likely impact on oil prices, as I mentioned in my earlier commentary on the possibility of a sharp spike in oil prices. We now also have more evidence that the so called growth economies of China and Asia are feeling the strain of rampant inflation in basic commodities such as food and sky high real estate prices that are putting a damper on housing construction. As a result, the U.S. economy will likely grow more modestly and job creation and salaries and benefits in the U.S. will continue to be constrained. So, it appears more and more that we will see slow but sustainable growth in the years ahead�� some say possibly for another decade.

How then should you position yourself to get ahead despite slow economic growth scenario? Here are a few steps to help you combat economic sluggishness and still come out ahead.

  1. Pay down your debts. Basically, your money in the bank isn't doing much to add to your wealth. With interest rates near zero, your savings are not even keeping up with inflation. So why have that money lose value? Instead, use your spare cash to pay down debt.? And let me emphasize, it's your spare cash I am talking about, not all your savings �C because you must stash away for a rainy day, should you get laid off or otherwise suffer a loss of income.
  1. Think Like a CEO. You really are CEO of your own family. And like all good CEOs, you cannot afford to be blind-sided by unexpected events. In fact, more than a corporate CEO, the head of a household with children and dependents has a lot more to lose if things go awry unexpectedly. So always keep your ears open, understand early warni! ngs such as pay freezes that may signal layoffs or trouble ahead, and plan your finances for all eventualities. And like all smart CEOs, anticipate and address problems before they take you by surprise and threaten your financial well being.
You can do this very simply by cutting down on lattes by brewing coffee at home (a $5.99 pound of home-brewed coffee can save you hundreds of dollars when done consistently), stretching out the life of your car, or say, buying a second-hand car with low miles instead of getting a new one, packing a healthy snack and carrying your own soda as opposed to eating out at work, fewer trips to the mall, and so on.{$end}

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Urban Outfitters Shares Popped: What You Need to Know

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of specialty retailer Urban Outfitters (Nasdaq: URBN  ) climbed 12% Tuesday after the company posted a better-than-expected sales update.

So what: Shrinking margins have weighed on the stock over the past year, but Urban Outfitters' update for the current quarter -- retail same-store sales are tracking up in the mid-single-digits -- offers a glimmer of turnaround hope. Just last month, in fact, management said its third-quarter profit fell about 31% on aggressive promotions and weak sales, so the positive news couldn't have come at a better time.

Now what: I'd continue to be cautious on the shares. While the rally is nice, several Wall Street analysts warn that the lift in comparable sales still comes as a result of continued markdowns and at the expense of gross margins. Of course, with Urban Outfitters trading at a P/E discount to rival Abercrombie & Fitch (NYSE: ANF  ) , much of those risks might already be baked into the price.

U.S. Market Points To A Flat Opening; Fed¡¯s Monetary Policy In Focus

The U.S. stock futures traded in a flat note amidst encouraging economic-sentiment data from Germany and ahead of the U.S. Federal Reserve's announcement on monetary policy. The U.S. market is expected to trade in a volatile note today.

In the U.S. economic calendar today, data on November retail sales is due at 8:30 a.m. Eastern time. Data on October business inventories as well as job opening and labor turnover will be released at 10 a.m. EDT.

Ahead of the opening bell, the Dow Jones industrial average futures were trading higher by 0.59 percent, or 71 points to 12,082. The Nasdaq Futures were trading higher by 0.63 percent, or 14.50 points to 2,308.50. Standard and Poor's 500 futures were trading lower by 0.67 percent, or 8.30 points to 1,235.50, today.

Hot Stocks of the Day: MDT, FST, FDS, PTRY, BBY

Medtronic Inc. (NYSE: MDT) agreed to pay $23.5 million to settle a Justice Department investigation of four post-market studies. The federal agency had alleged that the company violated the False Claim Act by using payments related to the post-market studies and device registries as kickbacks to induce physicians to implant its pacemakers and defibrillators.

Forest Oil Corp. (NYSE: FST) said it's budgeted $550 million to $600 million for capital projects next year, including $480 million to $520 million for exploration and development, primarily in the Texas Panhandle as well as in the eastern part of the state and northern Louisiana. The company also projected annual organic growth of 5 percent to 6 percent for net sales volumes next year as well as a 10 percent increase in net liquids sales volumes from estimated 2011 levels.

FactSet Research Systems Inc. (NYSE: FDS) reported net income of 45.5 million in its fiscal 2012 first quarter, as compared to $41.6 million a year ago. Diluted earnings per share increased to $0.99, up from $0.88 in the same period of fiscal 2011. Analysts had estimated a net profit o! f $0.99 per share for the company. Its total revenues increased to $196.4 million, up 13 percent compared to the prior year.

Pantry Inc. (Nasdaq: PTRY) announced that its net income was $3.3 million or $0.15 per share in its FY2011 Q4. This compares to net income of $8.5 million or $0.38 per share in last year's fourth quarter. Analysts had estimated a net profit of $0.59 per share for the company.

Best Buy Co. Inc.

(NYSE: BBY) reported net earnings of $154 million, or $0.42 per diluted share in its FY2011 Q3 compared with $217 million, or $0.54 per diluted share, for the prior-year period. Analysts had estimated a net profit of $0.51 per share for the company. Total company revenue was $12.1 billion during the fiscal third quarter, an increase of 1.7 percent compared to the prior-year period and included a comparable store sales gain of 0.3 percent.

Global Markets:

The global markets shifted slightly higher on Tuesday after the ZEW economic sentiment indicator for Germany improved in December, halting a nine-month downtrend. In Europe, Germany's DAX was up by 0.75 percent or 43.77 points to trade at 5,829.17. France's CAC40 added 0.19 percent or 5.92 points to 3,094.52. Great Britain's FTSE 100 was up 0.66 percent or 35.54 points to 5,462.52.

In the Asian market, China's Shanghai Composite closed lower by 1.87 percent, or 42.95 points to 2,248.59. Hong Kong's Hang Seng fell 0.69 percent or 128.49 points to 18,447.17. Japan's Nikkei 225 was down 1.17 percent or 101.01 points to close trading at 8,552.81. However, India's BSE 30 Sensex added 0.83 percent, or 132.16 points to close at 16,002.51.

Market Scan:

Ahead of the opening bell, crude oil was trading higher by 0.57 percent at $98.33 per barrel. Gold was down 0.07 percent at $1,663 per ounce.

In the currency market, the euro was trading higher by 0.18 percent against the U.S. dollar, and the Bri! tish pou nd was up 0.09 percent against the dollar. The dollar was down 0.19 percent against the Japanese yen.

On Monday, Wall Street closed on a negative note. The Dow Jones industrial average fell 1.28 percent or 162.72 points to close at 12,021.54. The Standard & Poor's 500 index was down 1.49 percent or 18.70 points to close at 1,236.48. The Nasdaq Stock Market Inc. composite index lost 1.31 percent or 34.59 points to close at 2,612.26.

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Women More Strategic in Charitable Giving

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While we have done plenty of legwork to help you choose a charity that needs some holiday help or that uses donations to feed the hungry, a study from Bank of America(BAC) suggests the research may be lost on men.

The study found that women are much more strategic when it comes to charitable giving, taking the time to research organizations and budget for donations before they write checks. Ultimately, however, women are more apt to give when they feel personally connected to a charity.

Among the report's top-ranked reasons for donating to a particular nonprofit, women cited personal experience with a nonprofit (82% of women versus 73% of men) and the organization's ability to communicate its impact (46% of women versus 32% of men) as top factors that motivate them to give.

Men, on the other hand, are much more likely to simply give to the same charity year after year, the study found. They're also less inclined to donate as a way to set an example for young people (43.6% of women versus 25.1% of men).

The study, meant to establish charitable giving patterns among affluent women, is based on interviews with 911 people (628 men and 283 women) who give more than $10,000 a year to charity.

The results indicate that nonprofit organizations interested i! n retain ing their affluent male and female donors should refrain from being overly pushy, as too-frequent solicitations and inappropriate monetary requests were cited by both genders as a primary reason for cutting a charity off. Follow TheStreet.com on Twitter and become a fan on Facebook.

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