5 Energy Stocks Poised To Double In The Next Couple Years

Most investors should have some exposure to the energy sector for a number of reasons. First of all, everyone uses energy, so it makes sense to hedge your own energy usage with some commensurate level of investment in your portfolio. For example, a retired investor should not just have all their money in low-yielding certificates of deposits and bonds because if the price of oil doubles in the next ten years, they will not have hedged the risk of rising energy costs. Instead of complaining about that large energy bill in ten years, energy investors could easily afford it, thanks to gains made in oil stocks.

This brings up the point that over time, inflation eventually creeps higher. The financial crisis that roiled the markets for the past couple of years, actually caused deflationary pressures for many assets, so few investors are focused on inflation. The lack of inflationary pressures due to the weak global economy has created some excellent buying opportunities for long-term investors. Making money in the markets often means you have to think one or two steps ahead. Eventually, the world economy will see growth, unemployment will drop, and demand for energy will rise along with inflation. This is the perfect time to buy undervalued energy stocks before all of this happens. Here are a few energy stocks that could double in value once demand rises. Some of these would even just about double if these stocks went back to the 52 week highs.

Halliburton Company (HAL) offers maintenance and other services to the oil and gas industry. The price of oil has remained strong around $100 per barrel, even in spite of the weak global economy. Just imagine how high oil might go when the headlines are about employees being hired, housing showing strength, and global economic growth returning. That will push the price of oil much higher which means oil and gas companies will have to drill deeper, and drill offshore, which means more demand for Halliburton's services. This company does have some exposure to the BP oil spill but a settlement could be coming soon, and the stock could rally once this issue is put aside. Buying on dips is likely to pay and from these levels the stock only needs to rise a bit past the 52 week high to double in the next couple of years.

Here are some key points for HAL:

• Current share price: $36.64
• The 52 week range is $27.21 to $57.77
• Earnings estimates for 2011: $3.97 per share
• Earnings estimates for 2012: $4.59 per share
• Annual dividend: 36 cents per share which yields 1%

Peabody Energy Corporation (BTU) is one of the largest coal companies in the world. This company is so large that it fuels about 10% of the power used in the United States. Coal stocks have been weak lately due to concerns over a potential double-dip recession. A mild Winter season has lowered demand for energy and that has put severe pressure on natural gas which is seen as being a competitive fuel to coal. Peabody is seeing high expenses in order to upgrade the MacArthur coal mine in Australia, and that could be a continued drag on earnings. However, the stock is trading for about half the 52 week high, so plenty of bad news is already priced in. It's reasonable to assume that this stock could rebound and go back to the 52 week high in the next couple of years, and that would be a double from current levels.

Here are some key points for BTU:

• Current share price: $35.46
• The 52 week range is $30.60 to $73.95
• Earnings estimates for 2011: $3.31 per share
• Earnings estimates for 2012: $4.75 per share
• Annual dividend: 34 cents per share which yields 1%

Cliffs Natural Resources (CLF) is a leading iron ore and coal mining company. The weakness in the global economy and coal pricing has started to impact financial results at Cliffs. The company recently announced that volumes and pricing would be weaker than expected and a Credit Suisse analyst downgraded the stock on that news. The pricing pressures and concerns over the global economy is likely to persist. Many investors also believe that China could see a hard-landing which would even further lower demand for coal. Because of this, it makes sense to buy only on major pullbacks. However, these issues are relatively short-term in nature and investors with a 2 to 3 year horizon could see the stock double from these levels.

Here are some key points for CLF:

• Current share price: $73.82
• The 52 week range is $47.31 to $102.48
• Earnings estimates for 2011: $13.40 per share
• Earnings estimates for 2012: $14.97 per share
• Annual dividend: $1.12 per share which yields 1.6%

Alpha Natural Resources (ANR) is a leading producer of coal with operations in the Appalachian region. It sells thermal coal to utilities and metallurgical coal to the steel industry. Concerns over weakening demand from China and lower natural gas prices have impacted earnings for Alpha. This taken the stock down to only about one-third of the former 52 week high. A small improvement in the economic data from China could boost coal prices and raise profit margins for this company. Since China's massive population base is growing exponentially, it's only a matter of time before coal demand is strong again. Longer-term investors who can accept some weakness and volatility will probably be well-rewarded when demand returns. Alpha shares could triple if it went back to the 52 week highs, so a double to about $40 even looks conservative.

Here are some key points for ANR:

• Current share price: $20.12
• The 52 week range is $15.49 to $61.66
• Earnings estimates for 2011: $2.03 per share
• Earnings estimates for 2012: 99 cents per share
• Annual dividend: none

Baker Hughes (BHI) provides drilling products and services to the oil and natural gas industry. This company has nearly $20 billion in annual revenues, a very strong balance sheet and the book value is $36.45 per share. Again, as oil companies make discoveries of oil in more remote locations and at deeper levels offshore, oil services companies like Baker Hughes will continue to see growth. Revenues are expected to grow about 15% annually. Between a couple more years of growth like that and some multiple expansion, this stock could double, trading for about $100 per share in the next couple of years. Recently, it has been possible to buy this stock for about $46 per share, so wait for dips like that before buying.

Here are some key points for BHI:

• Current share price: $49.58
• The 52 week range is $41.91 to $81
• Earnings estimates for 2011: $5.02 per share
• Earnings estimates for 2012: $5.88 per share
• Annual dividend: 60 cents per share which yields 1.2%

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

Disclaimer: Data is sourced from Yahoo Finance. No guarantees or representations are made. Hawkinvest is not a registered investment advisor and does not provide specific investment advice. The information is for informational purposes only. You should always consult a financial advisor.

IPO Market Vigilantes Push Back on New Issue Valuations

Sensing vulnerability among companies needing to raise cash in the public market, IPO market vigilantes began pushing back on new issue valuations in late 2009, with the pressure increasing sharply in 2010. An unusually-high 69% of year-to-date IPO offerings have priced below the expected range, well above the 28% average for the 2001-2009 period, as stingy investors and renewed economic uncertainties have backed issuers into a corner. The average deal is getting done at a sizeable -16% haircut to the proposed midpoint (the post-tech-bubble average is -3%) but these discounted valuations have not yet translated into higher near-term returns.

Disappointed Buyers
A common heuristic says that an IPO investor asks for a 10%-15% valuation discount to compensate for the incremental risk of an unseasoned equity. Using first-day pop as a proxy for this discount, it appears that the guideline generally held between 2005 and 2008, with the average IPO returning nearly 12% in its first trading session. Those willing to enter the IPO waters in the first half of 2009, close to the market's nadir, were rewarded with an even-more handsome 18% average first-day pop. Always reluctant to leave too much money on the table, it appears underwriters and issuers responded by raising their asking prices, with first-day returns falling to just over 4% in the second half of the year. Given this erosion in perceived discount levels, IPO vigilantes took matters into their own hands, scrutinizing multiples and pressuring underwriters to price deals below the range.

Motivated IPO Sellers
Over the last six to nine months, the market has experienced a shift to more mature and leveraged issuers, including several private equity portfolio companies bought out at mid-decade valuations. The deleveraging hangover from the private equity bubble continues to provide a steady flow of motivated sellers, and the private equity channel accounted for four of 13 deals so far in 2010. From 2005 to present, half of private equity-backed IPOs have priced below their proposed price range, likely driven by the IPO market's growth bias and its aversion to deals with insider selling or leverage. Looming debt maturities and liquidity concerns create motivation for private equity fund managers to sell, and buy side firms have taken the opportunity to extract better valuations.

Market Adjustments
Fortunately, issuers appear to adjust their valuations rapidly following periods of strong pricing headwinds. Directionally, we can see sharp adjustments in both pricing pressure and first-day pop in 2003 and 2009, following quarters in which more than 70% of deals priced below the range. Looking further back, we see similar reversals in 1992 and 1994 after periods of single-digit first-day returns and above-average pricing pressure. These periods of harsh pricing discipline were followed by longer periods when the majority of IPOs were priced within their ranges and, more importantly for investors, delivered more normalized first day returns.

Fundamentals Still Matter
Though recent IPO returns have been disappointing in the aggregate, investors should be keeping a close eye on new issues. Clearly, historical data suggest that underwriters are pragmatic in their response to pricing pressure and first-day duds by leaving more money on the table in subsequent offerings. Perhaps more to the point, investors can still find attractive absolute returns in the face of a strong technical headwind. Since June of 2009, down-priced IPOs that have received strong fundamental ratings in Renaissance Capital's Pre-IPO Research have returned an average of 5% on the first-day and 7% over the first month. This compares favorably with those receiving neutral or weak fundamental IPO ratings, which have declined by -3% and -4%, respectively. Though the overall performance of the IPO market has been lackluster, it still rewards the best fundamental stories, enabling informed investors to reap attractive gains.

Conclusion
While the current period of poor IPO performance may leave buyers feeling burned, history demonstrates that such imbalances are short-lived. After all, it is in the interest of the underwriters that investors and issuers begin to see eye to eye. Thus, issuers may be forced to leave money on the table to lure buyers back to the market. In the meantime, issuer fundamentals still matter, and research that distinguishes high-quality issues can allow investors to find value in an otherwise uncertain market.

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Dentist Long Island And Dental Concerns

A dentist Long Island serve as your initial line of defense against dental health issues. Although dentist Long Island present primarily preventative care and minor restorative therapy, they often can perform a wide array of dental procedures, like cosmetic treatments.

Even though dentists usually forgo postgraduate dental specialist training programs, their training doesn’t necessarily end with dental school. Dentist acquire additional dentistry education by attending lectures and participating in hands-on workshops provided by continuing education programs. Therefore, dentists who decide to enter into practice rather than attend specialized postgraduate training programs might still gain an advanced dental education beyond that associated with DDS and DMD degrees.

A Dentist who does not perform a given treatment provides you with a specialist referral. Root canal therapy removes infected pulp tissue within the root chamber of the tooth. The hollowed-out tooth is filled with an antibacterial filling, and the tooth is “capped” with a crown for protection. Endodontists specialize in performing root canal therapy, though dentist Long Island also often perform the restorative procedure. Misaligned teeth and malocclusions can be straightened and corrected with dental braces and retainers. Orthodontics is both a functional and cosmetic treatment, and has become an increasingly popular field of dentistry. Dental crowns can repair extensively decayed or damaged teeth. Dental crowns can be made of gold metals, silver metals, porcelain or a combination of porcelain and metal. Some dentists use CAD/CAM technology for the fabrication of dental crowns. In some cases, conservative dental veneers may replace the need for a dental crown. Dentist Long Island, family dentists, prosthodontists, pediatric dentists and cosmetic dentists may perform the crown procedure; however, expertise varies among dentists.

Prior to tooth loss, seniors may experience tooth sensitivity or discoloration due to a loss of enamel and dentin (hard, calcareous tissue beneath the enamel), or root deterioration brought on by gum recession. Seniors are more prone to periodontal disease resulting from improper dental hygiene practices, poor diet, ill-fitting dental appliances and/or diseases such as cancer or diabetes. In fact, the supporting bone structure for the teeth, including the jaw, may shift, which can play havoc on a senior’s bite and may contribute to tooth decay. Seniors are more likely to suffer from inflammation of gum tissue, dry mouth syndrome (often caused by medications) or oral thrush (a fungal disease causing ulcers and whitish spots on membranes of the mouth due to its effect on the immune system).

Because he is regarded as the first level of defense against dental problems, a dentist Long Island is seen primarily as preventative fields. The American Dental Association (ADA) suggests that you visit your family dentist for a checkup a minimum of two times each year. Such checkups provide routine or deep cleanings to eliminate plaque buildup and prevent tooth decay. If necessary, they also provide fluoride treatments to help coat the teeth, a procedure also important in the prevention of cavities. Preventative dental checkups could help with the detection of oral health problems long before the onset of symptoms.

Whenever a New Yorker has missing teeth, they must locate the ideal dentist or periodontist who is an expert in pain free Dental Implants in Long Island. Locating the best Dentist Long Island can certainly make all the difference in getting the comfort, relief and dental healthcare that they need.

How To Make Money From Currency Option Trading?

by Nigel Winter

Currency trading is a huge market around the world due to globalization. As the trading in this market has increased it has caused the interest in currency option trading to grow as well. Options on currencies give the holder the right to buy(call) the currency at a set price called the strike price. The option has a set expiration date. If the currency price moves higher before expiration the option can be exercised. The currency is purchased to be resold in the market at a higer price. Put options are purchased if the currency price is expected to fall. If it does, the holder can purchase the currency in the market and put(sell) it at the higher strike price.

One type of contract used in currency option trading is the traditional Forex option. With this type of option the trader has set his/her own strike price and expiration date. The broker will charge a premium based on these to factors for the contract. If you agree to the premium level you decide have many contracts you want and buy them from the broker. An example would be buying a call on the GBP/USD. You would be buying a call on the pound believing the price will move higher against the dollar before the option expires. To make a profit if this happens you have to exercise the option, buying the pound and immediately selling it at the higher market price. If your prediction is incorrect and the option expires, the premium is the only lose you will realize. Using options will limit your exposure to risk.

The SPOT contract is another type used in currency option trading. It is a “single payment option trade.” This means that if for example you feel that the euro will advance against the dollar and you buy calls on it, if you are right you do not need to actually purchase the currenct=y and sell in the market to make a profit. The profit from the option is automatically deposited in your trading account. Brokers charge a higher premium for trading this type of contract, however for speculators is the easiest way to trade.

The amount the broker charges for the option is the premium level. Several things will affect the premium level. The strike price is one of them. The closer it is to the market price the higher the premium will be. The more time until expiration the higher the premium. Highly volatile currencies will likely have higher option premiums.

One reason people get involved in currency option trading is simply to speculate on the price movements of the currency. These people are solely profit driven. This is the largest part of the market.

Another use of currency option trading is for the purpose of hedging a portfolio. If a person is long the actual currency they may purchase puts in order to minimize the risk of price fluctuations while the hold the currency. People who do business international may use this strategy as a protective measure.

A riskier strategy of trading currency options is selling options short with the intention of covering them when the price moves in the correct direction. Since loses are not limited in this style of trading. brokers typically require large cash deposits to secure these trades.

Currency option trading can be a hugely profitable experience if your predictions are correct because premiums are lower than deposits for the actual currencies. The time frame restraint is a challenge though. If your learn to make accurate calls on price movement however, you can make large profits.

About the Author:Before you proceed with currency option trading be SURE to read up on best broker forex traders!

ISM Manufacturing Index Advances, But How Strong Is It Really?

The ISM Manufacturing survey is upbeat in January as its index has risen to 54.1 from 53.1, a gain of one point. The employment reading stepped back by one-half of one-point, to stand at 54.3 in January down from 54.8 in December.

The ISM MFG index has nine main components and three metrics on lead-times. The ISM framework uses a statistic that implies expansion for the index or a component when the month's observation is above 50, contraction when it is below 50 and no change at a value of 50. The index and component readings range over a 100 point span from zero to 100. However, the various ISM components have different averages and different variabilities and for those reasons, discerning what the various categories tell us each month is not a straight forward process.

The ISM index itself is a weighted average of its components; since 1994, it has averaged 51.9. Prices, production and new orders have the highest average over this period at 58.1, 55 and 54.9 respectively. Order back logs and employment at 48.3 and 48.4 respectively have the lowest average readings. While all ISM components have the same theoretical range of 100 points, the ISM itself has ranged over only 28.3 points since late 1994. Prices have the greatest range at 73.5 points (with new orders second at a range of 48.1 points). The supplier delivery and inventory metrics have the most compressed ranges for this period, varying over about 25 points (or only one-quarter of their potential). The size of the range is also a good proxy for the overall variability of each category.

To better comprehend what each component reading means we assess each in three ways: We look at each as a percentage of its mean, as a percentile standing in its high/low range, and as a percentile level in its ordered queue of values. This process gives us more information on each category. The overall ISM stands at 104% of its average. Is also stands at the 74th percentile of its high-low range. And it stands at the 64.8th percentile of its ordered queue. That means that it is lower than this 64% of the time and higher only 36% of the time. The high-low range tells us that it is relatively high in its high-Low range, which means there is relatively less space between this index level and the range top compared to the number of observations between the current value and the highest. The two metrics give us insight as to the density of the readings above and below the current value. One tells us about how much higher the highest reading is the other how often the current reading gets higher than it is. Each are useful and different pieces of information.

The table puts the MFG PMI readings in some perspective. We can see each component as a percentage of its average value as a percentile of its high/low range or as a percentile standing in its ordered queue of values. Despite the setback in the employment metric this month, the employment metric is strong among all the component readings, it is the highest as percentage of its average, it is the second-strongest queue reading and it is the strongest in its high/low range percentile standing. ISM production backed off this month with that reading falling from 58.9 in December to 55.7 in January, leaving that component barely above its mean value and below its median at a 49% queue standing (the median is at 50% of the queue). Still, new orders are strong and backlogs, an important reading for future job growth, each are strong. But the inventory reading is high and that may be one thing that is weighing down on production. Delivery speeds show plenty of slack in all its metrics, with consistently low readings. Export orders that rose this month are firm, while the import orders index that fell-off is generally just above its average and queue mid-points.

The data on lead times show that production lead times are stretched out slightly for all components. Increasing lead times suggest planning farther ahead and are good signals for improved growth expectations. Despite the turn down in production this month, the lead times for production materials are up to 57 days; that is a 98th percentile standing in its queue. Capital expenditures whose lead times were up strongly in January are still below their median value and at the 48th percentile of their queue. Still, this may be more of a legacy value as the component has been moving higher steadily over the past year. Maintenance and repair lead times are also strong, standing in the 92nd percentile of their queue, higher only 8% of the time.

On balance, the ISM is still relatively upbeat. The labor metric has backtracked, but its standing is still at an impressively high level. Of course, the average for the MFG sector's monthly changes in employment (back to late 1994) is -22K per month, so we have to bear that in mind when we assess MFG. MFG has been a steady job-losing sector in the U.S., with recession job losses usually never ever making up the job losses in full. Even firm ISM job readings may not point to job growth.

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

Easy Forex Review

by Kris Deaney

There are vast sums of money that are exchanged everyday in the forex market and people can only really make educated guesses of just how much it is. One thing if for sure though, it is a very exciting marketplace to be part off.

The way things work, is that there are no regulated exchanges for Forex and the prices come from what the banks are willing to buy and sell for, between each other. This means that the brokers are acting as market makers, so you must find a good quality broker.

They need to be able to give a user or trader the proper levels of liquidity to ensure that currency can be bought and sold at the right prices, without spikes in prices or not being able to sell at all.

Since I began to use Easy Forex as a broker, I have always found them to provide excellent liquidity. They have a strong focus on customer services and when you fist sign up you get a personal account manager.

You do not need to download or have any software on your computer, it is all totally web based, meaning that you could be trading from any location anywhere in the world! As long as you have access to an internet connection of course.

Easy Forex can also provide courses and information about forex and trading, especially information on what causes currencies to move, as well as a full background on trading technically. This especially good if you are new to forex, or would like some extra help in forming a good trading strategy.

You also get your own news printer, with all the latest economic data as it comes out and world events. These can really cause very big price changes, that every trader has to be aware of, especially things like the non farms payroll.

People can either start off with a mini account or move straight on to a full account. Trades on the mini are as low as $12.50. Deposits and withdrawals are made quickly, with either a credit card or paypal.

However, you can open an account and take advantage of all the tools and education for free.

About the Author:For more information on these guys, follow this link.

Bond ETFs For Every Objective

As the lineup of exchange-traded products has expanded dramatically in recent years, financial advisors have found themselves with more tools at their disposal than ever before. The extreme granularity of many of the equity products out there allows for cheap, low maintenance targeting of specific corners of the investable universe, while the development of some increasingly complex products has opened up strategies that were previously inaccessible.

But perhaps the most impressive innovation in recent years has come on the bond side of the market, where the arsenal has expanded considerably over the past two years.�Whatever your objective for the fixed income side of client portfolios, odds are there is an ETF that can be used to help you out. Below, we highlight ten common objectives when it comes to managing a bond portfolio–as well as the ETFs that can be used to achieve those goals [for more ETF insights, sign up for the free ETFdb newsletter]:�

1. Dollar Diversification

Historically, the bond portfolios of U.S. investors have been dominated by securities denominated in U.S. dollars. But recent innovation in the ETF space has delivered up dozens of options for achieving access to debt denominated in currencies beyond the greenback, ranging from the Canadian dollar to the Chinese yuan. For those looking to achieve some degree of dollar diversification in their portfolios, the ETF options are numerous:

• Canada bonds
• German bonds
• Emerging markets bonds
• Australia bonds

[see International Bond ETFs: Reviewing All The Options].

2. Fine Tune Duration

When evaluating the risk components of fixed income securities, investors tend to focus on the credit risk components–the risk that the issuer will be unable (or unwilling) to make good on their obligations. Interest rate risk, however, can be considerably more important in certain environments, as moves in prevailing benchmark rates can have a major impact on bond valuations (rates and prices generally move in opposite directions) [see also Bond ETFs That Steer Clear Of Interest Rate Risk].

There are number of ETFs out there that can be used to fine tune the interest rate risk taken on in a portfolio. Those looking to extend duration have a number of long-dated ETFs such as the Vanguard Long-Term Bond ETF (BLV), Long-Term Corporate Bond ETF (VCLT) and Barclays 20 Year Treasury Bond Fund (TLT). Conversely, those looking to shorten up duration might like products such as Short-Term Corporate Bond ETF (VCSH) or Barclays 1-3 Year Credit Bond Fund (CSJ).

3. Beef Up Yield

With interest rates continuing to plumb record lows, many investors have become more active in their quest to achieve a meaningful current return from their fixed income portfolio [see Six Juicy High Yield Bond ETFs For 2012]. Of course, higher yields generally are achieved through taking on additional risk, but for those willing to increase the volatility a bit there are a number of options out there for juicing yields.

For investors looking to beef up the yield from their fixed income holdings, there are a number of ETF options:

• High yield bonds
• Long-term bonds
• Bank loans
• Preferred stock

4. Plan Cash Flows

Most bond ETFs deliver a “cash flow experience” that differs quite a bit from actual bonds; because ETFs generally operate indefinitely, there is no return of principal that occurs when investors hold an individual security. But for those looking to plan against a future liability or to gradually reduce duration over time, there are a number of “target date” ETFs out there that are designed to function more like traditional bonds and deliver a repayment of principal upon maturity [see 12 Rapid Fire ETF Ideas For 2012]. These ETFs have the potential to be useful for a wide variety of investors, ranging from a family planning for college tuition to a multi-billion dollar pension contemplating future obligations.

There are currently multiple suites of target date bond ETFs, covering three different types of bonds:

• Target date munis (MUAA, MUAB, MUAC, MUAD, MUAE, MUAF)
• Target date junk bonds (BSJC, BSJD, BSJE, BSJF)
• Target date investment grade corporate bonds (BSCC, BSCD, BSCE, BSCF, BSCG, BSCH)

5. Preserve Capital

For investors who are less concerned about maximizing current returns and more focused solely on preserving the value of their assets, there are ETFs that fall much closer to the “zero risk” end of the spectrum. A couple of active ETFs function essentially as money market funds, striving primarily to preserve capital by minimizing both credit risk and interest rate risk:

• PIMCO Enhanced Short Maturity Strategy Fund (MINT)
• Guggenheim Enhanced Short Duration Bond ETF (GSY)

6. Protect Against Inflation

In the wake of massive injections of liquidity into the global financial system in recent years, it should be no surprise that investors are concerned about an upcoming climb in inflation [see Inflation-Focused ETPs]. While the effectiveness of Treasury Inflation Protected Securities (TIPS) are debatable, those who believe these bonds will offset inflation have a number of choices from the ETF lineup. There are currently a dozen different TIPS ETFs, including funds that target short term securities (STIP, STPZ), long-dated TIPS (LTPZ), international TIPS (WIP, ITIP), and the global market (GTIP).

7. Round Out Emerging Markets Exposure

Many investors have increased their allocations to emerging markets in recent years, utilizing funds such as EEM or VWO to beef up exposure to the stock markets of developing countries. There are also ETFs for those looking to tap into the bond markets of these economies, asset classes that can deliver both attractive current returns and diversification against the dollar [see also Better-Than-AGG Total Bond Market ETFdb Portfolio].

Emerging markets bonds generally come in two flavors: funds that invest in debt denominated in the local currency (ELD, LEMB) and those that focus on dollar-denominated securities (EMB, PCY)

8. Eliminate Interest Rate Risk

For those looking to steer clear of interest rate risk altogether, there are some interesting ETFs that have debuted in recent months that hold floating rate debt. While the vast majority of bond ETFs are dominated by fixed rate debt, funds such as the iShares Floating Rate Note Fund (FLOT), Market Vectors Investment Grade Floating Rate ETF (FLTR), and SPDR Barclays Capital Investment Grade Floating Rate ETF (FLRN) focus on debt securities whose coupon payments adjust based on movements in benchmark interest rates.

For those concerned about the adverse impact of a rate hike campaign on debt valuations, the floating rate bond ETFs mentioned above can be compelling ways to strip out interest rate risk while still capturing the component of returns associated with credit risk.

9. Maintain Some Upside

Most bond ETFs offer access to traditional fixed income securities that deliver relatively stable returns compared to equities but that miss out on the potential upside of a stock investment. There are, however, a couple ETFs that deliver access to securities that generally act like bonds but keep some of that upside potential on the table. Specifically, the SPDR Barclays Convertible Bond ETF (CWB) and PowerShares Convertible Securities Portfolio (CVRT) both hold convertible bonds, securities that deliver coupon payments similar to traditional bonds but also afford the holder the right to convert into equity (generally at a predetermined ratio).

For those willing to sacrifice a bit of return for some upside potential, convertible bond ETFs might be worth a closer look.

10. Max Out Tax Efficiency

When it comes to the effective returns realized on just about any security, the tax situation of the investor will go a long ways towards determining how much falls through to the bottom line. The universe of bond ETFs consists of a wide range of tax treatment; some securities are fully taxable, while others are entirely tax exempt [see also Tax Loss Harvesting With ETFs: 6 Ideas To Lower Client Liabilities].

Muni bonds have long been a popular choice with investors in higher tax brackets, since the tax-exempt nature of these securities can be an effective way to maximize the cash collected. The lineup of muni bond ETFs is extremely diverse, including products that target New York, California, high yield munis (HYD), short-term munis (SUB), long-term munis (MLN), Build America Bonds (BAB), and insured munis (PZA).

Forex Trading Tips For Success

by Mark Green

Forex trading tips are many, but with so much available information on the internet it can be hard to decipher what are good and bad tips. From my experiences I have arranged some essential tips that any trader may be able to apply.

The first of the forex trading tips is that you must dedicate time to forex. How else are you going to make progress if you don’t spend any time on research and learning to better your trading skills? Your success is dependent on how much time and dedication you put into your work, like most things.

Second of the forex trading tips is persistence. Don’t be a quitter and give up before you have put in some honest hard work. Going into forex with an over night success in your mind is a sure way to failure. Most new forex traders have a problem with this vision, and drive them to rush things. Success is built over time, you must think of it as a long term goal, or achievement.

Third forex trading tips, finding a method of trading that works for you. Long term testing of the different strategies is important to achieving accurate results. These results will help determine if the method is for you or not. Calculate your profits on a rolling average, it constantly fluctuates. Win more trades then you lose. and you will be fine.

Fourth in the forex trading tips is proper money management. One must properly manage their money in order to achieve success. Hitting trades with an entire trading account is a very risky move, which may quickly lead to a destroyed trading account. Using small margins at first to keep things in control is what money management is all about.

Fifth of the forex trading tips is managing/researching your trades. Be sure to do proper research before each trade, and to watch them start to finish at first. That is if you are doing short trades, also known as “scalping trading”. Long term trades are not a good way to start out, since they can take a while and end up tying up your trading account for some time. If you are looking to start out on one of the best systems on the market, then you must check out one of the best managed, easiest ways to start your forex success. First step to success is to take action today!

About the Author:If you truly want to get out of the ditch and make cash, check out the “Big Wigs” Forex Trading Tips. If your fed up with the BS and you want to make real profits for your self, stop letting the “Big Wigs” spoon feed you baby steps, find out their dominating Forex Trading Tips.

AT&T Sounding Loud-and-Clear Buy Signal

AT&T (NYSE:T) — One of the most recognized brand names in the world, AT&T is expected to see gains in consumer wireless and broadband services. Its strong balance sheet, long-term customer relationships, and expanding profit margins should result in an increase in the P/E multiple of the stock along with an increase in earnings. Analysts estimate AT&T will earn $2.27 in 2011 and $2.53 in 2012.

The stock has a dividend yield of over 6%, and fundamental analysts have a price target of $34, which, if reached, would result in a total annual return of 18%.

Technically the stock has reversed from its 50-day moving average and flashed a buy signal from our internal indicator, the Collins-Bollinger Reversal (CBR), resulting in a six-month target of $36.

Wait for the Right Time to Grab This Bull

My portfolio is in a very conservative posture, even by my normally conservative standards. With the sale of SPDR S&P MidCap 400 ETF (NYSE:MDY)� in early January, I�ve now got 49% of my portfolio in bonds and cash equivalents — my heftiest weighting in these defensive instruments in 22 years.

It�s not that I�ve given up on stocks or turned bearish on America. In fact, I think there�s a good chance I�ll be buying aggressively again sometime later this year. Meanwhile, though, I want to preserve my capital until the evidence suggests the potential rewards in most stocks handily outweigh the risks.

When will that be? It�s difficult to pinpoint the day or the week, but I�ll be looking for several things.

A drop in the headline stock indexes (such as the S&P 500, the institutional benchmark) would improve values. According to my proprietary valuation model, the S&P at 1,033 would be priced to deliver a long-term return of 9.6% a year — the market�s average since 1925.

Alternatively, a pickup in corporate earnings growth or an easing of Europe�s financial stresses, combined with a more modest pullback in share prices, could make equities attractive again.

For now, I�ll stay cautious. It�s a policy that kept me in the black last year, when many prominent investors nursed heavy losses. (My portfolio gained 2.5% in 2011.) I�m confident �safety first� will pay off in the opening months of the New Year, too.

Outlook and Strategy

Here, in a quick sketch, is my outlook and strategy for my portfolio:

Stocks, which make up 51% of my total portfolio — down from 56% last month — pushed their year-end rally into January, with the S&P reaching the 1,300 to 1,325 zone I�ve anticipated as a ceiling for the past several months. At this point, it would be natural to expect some kind of pause or consolidation, initially on the order of 3% to 5% from the recent index highs.

Strategy: I’m still buying a scattering of stocks. At current market levels, though, I’m doing more selling on balance. On Jan. 10,� when the price touched $165, I sold MDY. From my initial purchase in September 2008, MDY handed me a 21.8% total return. As part of my MDY sale, I shifted 5% of my portfolio to Weitz Short-Intermediate Income Fund (MUTF:WEFIX).

Enerplus Resources (NYSE:ERF), a Canadian oil-and-gas producer I�ve recommended before, launched a C$300 million stock issue Jan. 18. As often happens in such cases, the share price dipped, presenting a nice entry point for new money. Enerplus, which has a sizable foothold in the rich Bakken shale oil field (North Dakota), is growing steadily, with a 10% increase in production slated for 2012. Current yield: 9.2%. Buy ERF for income.

Besides oil, I consider gold and gold-related assets to be an excellent hedge against the ongoing reckless monetary policy of the Federal Reserve. Bullion serves primarily as insurance against the unthinkable (collapse of the banking system, runaway inflation, etc.). Thus, the percentage of your portfolio devoted to gold coins and other forms of bullion should reflect the odds you place on a disaster scenario — less than 10%, in my view.

For capital appreciation, on the other hand, gold-mining stocks look particularly appealing right now. Some senior producers with well-defined growth prospects are trading at P/E multiples that would be cheap even for a stodgy industrial business (which gold mining most certainly isn�t!).

Barrick Gold (NYSE:ABX) is quoted at a mere 8X estimated 2012 profits. Buy ABX.

Newmont Mining (NYSE:NEM) plans to expand its gold production even faster than ABX over the next few years. At 10X forward earnings, it�s a bit more expensive, but still a bargain compared with its average P/E of the past five years. Current yield: 2.4%. Pay up to $62.80 for this niche investment.

Fixed income makes up the other 49% of my portfolio — up from 44%. But, here�s a conundrum: If business activity is revving up, why is the 10-year Treasury yield skulking only a stone�s throw away from its historic low of 1.7%, set last September? Either stocks are right or bonds are right — both can�t be right. My guess is Treasury yields will record a belated blip in the next few weeks (to perhaps 2.2% to 2.4% on the tenner) before sliding again in the spring as the equity market gives back some of its recent gains.

Strategy: Avoid Treasuries except as a short-term hiding place when stocks are in turmoil.

This month, I’m drawing down my stake in bank CDs by 2% and shifting that amount to global bonds (emerging markets). CDs still make sense as part of my last-ditch reserve, but my portfolio already holds a large slug of bonds with short maturities via WEFIX. With the Federal Reserve promising to keep money market rates �exceptionally low� through mid-2014, we can afford to increase our weighting in emerging-markets bond funds, which typically have an average maturity of 10 to 12 years.

Fear vs. leap year

BOSTON (MarketWatch) � Suddenly, like a cold front lifting, the markets at home and abroad have been springing to life.

From better-than-expected jobless claims, correlated bumps up in the housing market, expanding manufacturing activity here, Germany, China and elsewhere, inflation in check and lending rates at historic lows, and earnings revealing better bottom line management and top line achievements which in turn are generating plans for more spending on strategic acquisitions, fear has begun to thaw.

TRADING STRATEGIES: February

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� Kacher & Morales: Precious metals looking up
� Kahn: We are living in a material world
� Lowell: Fear and leap year
� Hodges: Find opportunity in Europe deja vu
� Hogan: Bulls are tethered by Greece

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Omar Aguilar, chief investment officer at Charles Schwab, tells MarketWatch's Jonathan Burton investors are transitioning to a search for growth from a flight to quality. /conga/story/2012/02/trading-strategies.html190512

And while I think such a thaw looks more like a false spring than the real thing, meaning the probability of fear returning rather than retreating will likely rise in February, I do think we get to a better end by year-end. More on that below.

Here and now, on a fretful cue, toward January�s end we saw the International Monetary Fund cut its forecast for global economic growth in 2012 and even 2013, citing a �perilous new phase� for the euro zone.

Notwithstanding the likelihood that no bailout sun, let alone bailout plan, could solve the euro zone issues outright, and certainly not overnight, the global markets have shrugged off having to pay that monochromatic piper, preferring a pied version of better probable outcomes. I don�t think that�s off base, so much as I think it is premature.

Lowell�s leap year law of averages

Into that mix, you�ll have to balance the lures of better fundamentals with the risk of fear�s return.

The latter can happen suddenly and voluminously, while the former continues to piece together a better outcome than a return to the worst of times. And on a semi-final note (I still have to get to my trades), if nothing else goes right, we have Lowell�s leap year law of averages (with kudos to one of my research analysts, Greg Kelly for helping me prove it), on our side. Take a look at how the Dow Jones Industrial Average and the S&P 500 have fared in every Leap Year since Hoover was in charge:

OK, so plotting this February�s trading course based on what has worked best in Leap Years past is worse than banking on a crystal ball or letting your GPS do your driving for you. But it is more than a bit eye-catching to note that there has never been a negative leap year that hasn�t been followed by a positive one, and our research shows that this year, we�re due one. Moreover, while the average Leap Year gain for the Dow is 5.7% and 9% for the S&P 500, the average Leap Year gain inside the first term of a new President is nearly double that: 10.6% for the Dow and 14.2% for the S&P 500.

Shifting Into stocks

For the fundamental reasons noted above, but with a nod to my Leap Year note, I continue to like State Street�s SPDR Dow Diamonds DIA � for the battle ship balance sheets, multinational reach and dividend enhancement. While there is a gathering view that mega-caps are becoming overvalued, I don�t share it. On days when the going is good, this stake should help us gain speed. On days when there are bumps in the road, there will be more safety in the DIA�s bigger bumpers than in the mid- and small-cap compacts.

I would complement that trade with a bullish signpost my charts don�t get because it hasn�t been there to be seen over the past two years is GM�s re-opening up its 3rd shift for the first time since the 2008 meltdown. Another off-the-beaten-path factoid: ball bearings needed to manufacture the machinery that such plants operate are now running on a 50 to 60 week lag to demand. With Americans driving older cars longer than anytime in recent memory, I think the car sales boomlet is likely to rev up rather than reverse. My preferred pick: Fidelity Select Automotive FSAVX �, manager Michael Weaver�s biggest stake is in Ford (12%), with 8% to 9% in GM, Honda and Toyota. Autoliv (think air bag producer), TRW � (think chassis to technology), Dana (axles, driveshafts, transmissions) and Magna (from interior and seating to powertrain) are in this fund�s production line, too. (More bullish traders could consider owning the fast lane pairing of the iShares Dow Jones Transport IYT � and the Guggenheim Shipping SEA � ETFs, but you�d run the risk of getting skunked and sunk if fear trumps fundamentals this month.)

My yen for the dollar

Long time readers know I like to use currency trades to participate in the ongoing dialectical macro trend of growing and weakening economies. I also like to use such trades to offset the risks on the stock side of the fence � not by dampening volatility but by offering a non-correlated maneuverability; not so much a spare tire as an alternative mode of transport.

The current lull in the euro zone storm has delivered an opportunity for a contrarian trade; along the currency lines, I like the pairing of the Powershares Dollar Bull UUP � with Proshares Ultra Short Euro EUO �, and the Proshares UltraShort Yen YCS �. (The trade positioning I like best: 70% UUP, 15% EUO, 15% YCS.) The trade should help capitalize on a strengthening U.S. economy over and against a still weakening euro zone and what I think is a more vulnerable Japanese economy if the yen remains unchecked and strong. Japan�s economy recorded its first annual trade deficit since 1980 (not just for Tsunami-related issues), and if the yen remains strong, Japan knows it could run trade deficits for years to come, hence it�s in their best interest to weaken their yen. Hence my yen for the dollar trade.

Overall, whether it�s fear�s recurrence in a euro zone staging of Groundhog Day or the thin ice of the global recovery upon which we can still skate toward gains, I favor a balanced approach to February�s leap as we bound to a more bullish year.

Amazon shares tumble, Broadcom up after hours

LOS ANGELES (MarketWatch) � A shortfall in sales figures sparked a sell-off in shares of online retailer Amazon.com Inc. Tuesday evening, while Broadcom Inc.�s shares found strength from the chip maker�s quarterly sales outlook.

Amazon AMZN �shares tumbled 8.7% to $177.55 as the company said revenue was $17.4 billion, up from $12.95 billion a year ago but weaker than the $18.3 billion estimate for the most recent period produced by a FactSet Research survey of analysts.

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Reasons to hold shares of Exxon Mobil and Apple, despite their high prices. Photo: Getty Images.

Amazon�s first-quarter revenue outlook also was light. Amazon forecast of $12 billion to $13.4 billion was below Wall Street�s projection of $13.4 billion in sales. Amazon also said a loss in operating results may be in sight. Read more about Amazon�s results.

Fourth-quarter net income on a per-share basis at Amazon was 38 cents a share, surpassing Wall Street�s forecast for earnings of 17 cents a share. The result for the most recent quarter fell from 91 cents a share a year ago .

Shares of Broadcom BRCM �picked up 2% to trade at $35.05. The company said it expects to report first-quarter sales of $1.7 billion to $1.8 billion. Analysts currently expect revenue of $1.73 billion. See story about results from Broadcom.

Adjusted earnings for the fourth quarter were 68 cents a share, and revenue fell to $1.82 billion from $1.95 billion. The projection from Wall Street called for Broadcom�s earnings to come in at 64 cents a share on revenue of $1.81 billion.

Net earnings for the fourth quarter at Broadcom were $254 million, or 45 cents a share, compared with $266 million, or 47 cents a share, a year ago.

Also higher, shares of Seagate Technology Inc. STX �were up 6.2% at $22.45 as the hard-disk drive maker�s fiscal second-quarter financial results outstripped Wall Street�s forecast. Read more about Seagate's Q2 report.

Better-than-expected results from network-security company Fortinet Inc. FTNT �were followed by an 8.7% surge in shares to $24.80. The company�s fourth-quarter earnings on an adjusted basis were 14 cents a share on revenue of $120.9 million. Analysts estimated 12 cents a share in earnings and $116.5 million in sales. See more about Fortinet's Q4 report.

Ahead of the late-trading session, U.S. stocks mostly finished lower after lackluster economic data. But the key equity indexes marked their best January in more than a decade.

The Dow Jones Industrial Average DJIA �ended the daily session down 21 points, or 0.2%, to 12,632.91. It rose 3.4% for the month. The S&P 500 Index SPX �slipped less than a point to 1,312.41. But the Nasdaq Composite Index COMP �fought for a gain of 2 points, or 0.1%, to end at 2,813.84. Read about Tuesday�s action in U.S. stocks.

For the month, the S&P 500 Index rose 4.4% and the Nasdaq Composite surged 8%, its best January since 2001.

Stocks end in red on earnings, economic data

NEW YORK (CNNMoney) -- U.S. stocks ended in the red Thursday as investors digested a mixed batch of corporate earnings results and remained cautious amid lackluster economic data and ongoing debt talks in Greece.

The Dow Jones industrial average (INDU) dipped 22 points, or 0.2%, the S&P 500 (SPX) lost 8 points, or 0.6%, and the Nasdaq (COMP) fell 13 points, or 0.5%.

The three major indexes started higher but gave up gains throughout the day. Disappointing data on the housing market forced investors to turn cautious, said Sameer Samana, an analyst at Wells Fargo Advisors.

New-home sales tumbled to a record low in 2011, according to government data released Thursday. Just 302,000 new homes were sold in 2011, 6.2% below 2010 and the lowest number of annual sales since the government started tracking home sales in 1963, the report showed.

"The fledgling recovery in housing market activity has yet to encompass the new homes market," noted Paul Diggle, property economist at Capital Economics. "The bottom line is that new-home sales are unlikely to rise significantly from their current ultra-low level while they are having to compete with deeply discounted foreclosures and short sales."

Fourth-quarter corporate results were also in the spotlight. Caterpillar (CAT, Fortune 500) and 3M (MMM, Fortune 500), which both posted better-than-expected earnings, were the best performers on the Dow, while Netflix (NFLX) was the biggest winner on the S&P 500 and the Nasdaq, with shares surging more than 20%.

Late Wednesday, the streaming video and DVD-by-mail company topped earnings and sales expectations. Netflix said it began to add customers again last quarter, after a series of blunders damaged its reputation with consumers and investors.

JCPenney (JCP, Fortune 500) and LSI (LSI) were also big gainers among the S&P 500, after the companies delivered upbeat forecasts for the first quarter of 2012.

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On the flip side, AT&T (T, Fortune 500) was the biggest laggard on the Dow after it reported quarterly earnings that fell short of forecasts. Disappointing results from SanDisk (SNDK, Fortune 500) also weighed on both the S&P 500 and the Nasdaq.

E*Trade (ETFC) was the worst performing stock in the S&P 500, after the company posted an unexpected fourth-quarter loss.

"Earnings continue to drive trading this week," said Michael Sheldon, chief investment strategist at RDM Financial Group. "Overall, results haven't been as strong as recent quarters, but they're holding up pretty well."

Investors are also still waiting for news out of Athens, where Greek officials are negotiating with private-sector creditors to reduce the country's debt burden.

"As long as the talks continue, a resolution is still a good possibility," Sheldon noted.

A stall or end to the talk, however, would be a major concern. Greece is in desperate need of an agreement to receive additional bailout funds from the European Union and International Monetary Fund. Without these funds, the country may not be able to make a €14 billion debt payment that's due March 20.

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Stocks finished higher Wednesday after the Federal Reserve pledged to keep interest rates near historic lows through late 2014 -- an extension from its original pledge to keep rates low through mid 2013 and its latest move to support the economic recovery.

Economy: Initial jobless claims for the week ended Jan. 21 rose to 377,000 from a revised 356,000 the week prior, according to the Labor Department. Economists had anticipated 375,000 claims, according to a survey of analysts by Briefing.com.

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Durable orders for the month of December rose 3%. Economists expected orders to have risen 2%.

The Conference Board's Leading Economic Indicators Index for December rose 0.4%. Economists were expecting the index to rise by 0.7%.

Companies: Nokia (NOK) shares climbed after the mobile phone maker posted a fourth-quarter loss of €1.1 billion, with sales down 21% compared to the same period a year earlier. Chief Executive Officer Stephen Elop said the Finnish company has sold more than 1 million Lumia devices, a smartphone using Microsoft (MST) Windows Phone software.

Currencies and commodities: The dollar fell against the euro, the British pound and the Japanese yen.

Oil for March delivery added 30 cents to settle at $99.70 a barrel.

Gold futures for February delivery gained $26.60 to settle at $1,726.70 an ounce.

Bonds: The price on the benchmark 10-year U.S. Treasury rose, pushing the yield down to 1.93% from 2.01% late Wednesday.

World markets: European stocks finished higher. Britain's FTSE 100 (UKX) gained 1.1%, the DAX (DAX) in Germany jumped 1.7% and France's CAC 40 (CAC40) added 1.3%.

Asian markets ended mixed. The Hang Seng (HSI) in Hong Kong added 1.6% while Japan's Nikkei (N225) fell 0.4%. Shanghai was closed for Chinese New Year. 

The Murder of Sister Valsa: Chapter Three

By Krishna Pokharel and Paul Beckett

[Read� Chapter One here, Chapter Two here, Chapter Four here, and the final Chapter here]

[Join series reporters Krishna Pokharel and Paul Beckett for a live chat on Tuesday, Feb. 7 at 8:30 p.m. India time, 10 a.m. ET. They'll answer your questions about the series and speak to your comments. Ask your questions now.]

The Wall Street Journal

As Sister Valsa John Malamel became more involved in the anti-mining protest movement around the village of Pachwara in Jharkhand, her relationship frayed with her religious order, the Sisters of Charity of Jesus and Mary.

In the early years that she lived in Pachwara, she used to visit the order�s nearby convent in Amrapara every weekend. But her visits ceased in 2006. �She found she didn�t have the time,� says Sister Lilly Pallipurath, who heads the order�s council that oversees the Jharkhand convents from Ranchi, the state capital.

Sisters of Charity of Jesus and MaryAn undated picture of Sister Valsa

The council summoned Sister Valsa to discuss her absence. It suggested placing her elsewhere. She refused.

Sister Valsa�s church attendance also lagged, though she told her sisters she celebrated the Eucharist when a local priest visited. The sisters worried that she was neglecting her nun�s rituals.

�We always said we approve of her work but about her religious life we were not very happy,� says Sister Lilly, 50 years old.

Sister Valsa would respond: “What is important for me is the life of the people.”

Was Sister Valsa losing her faith?

“If you look at rituals and other things, one would say she had no faith,� says Sister Lilly. �But rituals and timely prayers are not really faith. That she diminished in her faith, I cannot say that. She always felt close to Jesus.�

The Wall Street JournalLilly Pallipurath heads the Sisters of Charity of Jesus and Mary’s convent in Ranchi.

Sister Valsa also believed her work was closer to the order�s original mission of serving the poor than the life her sisters led inside their convents. And she wasn�t shy about saying so.

� �I am living the life our founder lived,� she would say,� says Sister Lilly. �She felt she was living it much more than the other sisters. I said, �You can’t say that.� That was not appreciated.�

In Pachwara, too, resentment was building toward Sister Valsa.

Promodini Hembrom is the 42-year-old niece of Binej Hembrom, the tribal chief, and the daughter of his brother, Cornelious. She says that as Sister Valsa�s role as an activist increased, her father and uncle worked at her �beck and call, out of their goodness and ignorance.�

�We used to tell our fathers, �You are the head of the villages, how can an outsider make you run like her dogs here and there?�� Promodini Hembrom says. �But they wouldn�t listen. She had made everybody in the village dumb.�

Cornelious Hembrom, 73 years old, says he and his brother supported and helped Sister Valsa because they believed she was �working for the good of the village.�

The Wall Street JournalThe office of PANEM at Kathaldih, near Pachwara.

After the village reached an agreement in 2006 with PANEM, the local mining company, Pachwara was undisturbed by the company�s activities. But PANEM opened two mines in the area, one in Kathaldih, about seven kilometers from Pachwara.

The mine�s entrance is a craggy and desolate terrain of black and gray shiny sludge. Dump trucks and coal trucks roar along the access road. A narrower road leads up a few hundred yards past machinery, workers’ housing, and piles of trash to the company�s offices. Of the almost 600 people employed at Kathaldih, about 400 are local tribal members, a company official says.

The mining takes places in a vast canyon. Its walls are layered like a Himalayan mountainside but they are devoid of green. In the canyon floor, solitary dots of yellow and orange — a mammoth excavating machine, backhoes and trucks — plow through the freshly-blasted earth to extract, load and remove the coal.

The road from the mine to the railway station in the nearby city of Pakur is in constant use. Dozens of trucks move slowly in giant convoys. Traffic jams are frequent as they meet convoys returning to the pit.

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As the trucks trundle by, local men play out a gruesome ritual of desperate poverty. They line the roadside, waiting for their moment. When it comes, they climb the walls of the passing truck and throw out what coal they can grab from the high pile in the truck bed. The drivers make no effort to stop them. Back on the roadside, the scavengers scrape up the fallen coal with a long fork, pack it into tall sacks, mount the sacks on bicycles, and push them to market to sell as fuel in tea stalls or homes.

The Wall Street JournalA girl collects nuggets of coal on the roadside near Pachwara.

In the early hours of the morning, local women line the roads to scrape bare-handed for what the men leave behind, their blackened fingers probing the deep coal dust for a nugget. Everything, even the garbage, is plastered with soot.

Since 2005, more than 150 villagers have died after being hit by coal trucks, according to the villagers and police officials. Bishwanath Dutta, director of PANEM, says the transportation of coal is handled by contractors from Pachwara and elsewhere in Jharkhand and the company doesn�t have direct knowledge of these incidents.

The Wall Street JournalTrucks carrying coal move in convoy near Pachwara.

The mine also has attracted the attention of local Maoist rebels. They are known as Naxalites after the village of Naxalbari in the neighboring state of West Bengal, where their insurrection started in 1967. The rebels seek the overthrow of the Indian state and have won support among some tribal villagers in Jharkhand and across central India where government services are decrepit or don�t exist. The rebels intimidate villages they view as unsympathetic to their cause. And they target police stations and corporate offices.

In 2009, two senior PANEM officials were shot dead while they were on a morning walk. The murders are under investigation. Police suspect the rebels. On Jan. 10, a group of about 20 Maoists attacked the Kathaldih mine, firing indiscriminately. They killed a security guard, police say.

Villagers in Pachwara and surrounding hamlets have earned unprecedented sums through road construction contracts and other benefits offered by the mining company.

But by early last year, Sister Valsa was growing frustrated. She believed PANEM was dragging its feet on key provisions of the 2006 agreement between the company and nine villages that she helped negotiate, according to villagers and her friends.

In a May meeting of the committee that oversees the pact, she demanded that the company build a hospital that, in 2006, it had promised to complete by the end of 2007, says James Murmu, a PANEM official, who was present. He says the company took her demand seriously and has acquired land where the hospital will soon be constructed.

Sister Valsa also was coming into increasing conflict with Pycil Hembrom, the 40-year-old son of Binej, the tribal chief, according to Sister Valsa�s friend, Sonea Deheri, and police documents filed later.

Pycil Hembrom was responsible for distributing company funds to villagers, a process Sister Valsa supervised. But by early 2011, he had begun challenging Sister Valsa�s supervisory role, Mr. Deheri says, and sought to usurp her.

He says Pycil Hembrom wanted to have “complete control” of the process of negotiating with the company, distributing company funds for compensation and welfare programs, dispensing contracts and supervising the implementation of the 2006 agreement. The contracts and compensation were set to increase dramatically when mining began in Pachwara.

Pycil Hembrom was not available for comment. His son, Prem Hembrom, says his father negotiated with the company only when Sister Valsa was away from the village. He added that his father didn’t “want anything for himself from the company.”

The differences between Sister Valsa and Pycil Hembrom caused a broader rift between the villagers. And it left Sister Valsa in a difficult position: Since she had arrived in Pachwara, she had been staying at the home of Pycil Hembrom�s family, where he also lived.

The atmosphere in their shared house soured. Father Tom Kavalakatt, a local priest, says Sister Valsa recounted to him an incident in June when Pycil Hembrom and his elder brother, Anand, were drinking at the house. Anand Hembrom verbally abused Sister Valsa, Father Tom says she told him.

She confided in her friend Mr. Deheri, too. In a statement later filed with a local court, he said Sister Valsa told him in June: �Pycil has started using abusive words against me and is hurting me emotionally.�

In late June, Sister Valsa moved out of the house to a pair of small rooms in a nearby home.

Anand Hembrom denies that he or his brother abused Sister Valsa. He says Sister Valsa �went out of the house peacefully.� But her relations with the village�s most powerful family would never be repaired.

***

This is the third chapter in the story of Sister Valsa. The first chapter is here, the second here, the fourth here and the final chapter here. It is a tale of greed, lust, friendship, betrayal , faith, and brutality set against the conflict between two major forces shaping India today: Industrialization and the drive to preserve traditional ways of life. The Wall Street Journal compiled this account based on dozens of interviews, witness statements, court documents, and police files. It is running as a serialized story on India Real Time and india.wsj.com every day this week.

SM: More Tax Implications of Foreclosures

A foreclosure occurs when a mortgage borrower defaults and the mortgage lender seizes the mortgaged property in order to sell it before things get worse.

More Than One Mortgage Also See

• The Tax Implications of Foreclosures

When there are several mortgages against a property, any of the mortgage lenders can potentially initiate foreclosure proceedings. The first mortgage generally must be paid in full before the second mortgage lender can collect anything in a foreclosure.

Recourse versus Nonrecourse Mortgage

The foreclosure transaction is not necessarily the end of the story if your mortgage is a recourse loan, because the lender can pursue you for any negative difference (deficiency) between the foreclosure sale proceeds and the loan balance plus foreclosure costs. See Part 1 of our series for the story on recourse mortgages foreclosures.

In contrast, with a nonrecourse mortgage, the lender's only remedy is to foreclose on the property and sell it. If there's a deficiency, the lender cannot go after you to collect it.

In some states, first mortgages taken out to acquire principal residences are nonrecourse but second mortgages are recourse. In this scenario, the second mortgage lender can initiate foreclosure proceedings and pursue the borrower for any deficiency on the second, but the first mortgage lender cannot pursue the borrower for any deficiency on the first.

Tax Impact of Nonrecourse Mortgage Foreclosure

The most important variable in determining the federal income tax consequences of a principal residence foreclosure is whether the mortgage is recourse or nonrecourse. Here's the deal on nonrecourse mortgage foreclosures.

A foreclosure by a nonrecourse lender is treated for federal income tax purposes as a sale of the property to the lender for an amount equal to the nonrecourse mortgage balance. The property's FMV is completely irrelevant, and the lender cannot pursue the borrower for any deficiency. There's never any debt forgiveness, because the taking of the property in foreclosure is deemed to completely satisfy the nonrecourse loan. Therefore, there is no possibility of taxable cancellation of debt (COD) income with a nonrecourse mortgage foreclosure.

However, there will be a gain or loss from the deemed sale to the lender.

A gain occurs if the nonrecourse loan balance exceeds the property's basis (usually the original purchase price plus the cost of any improvements). The gain will often be federal-income-tax-free thanks to the home sale gain exclusion break. It allows an unmarried person to exclude (pay no tax on) a principal residence gain of up to $250,000; a married joint-filing couple can exclude up to $500,000. To qualify, you generally must have: (1) owned the home for at least two years during the five-year period ending on the foreclosure date and (2) used the home as your principal residence for at least two years during that five-year period.

If the property's basis exceeds the nonrecourse loan balance, the foreclosure triggers a nondeductible loss.

Example 1: Steve took out a nonrecourse first mortgage to acquire his principal residence. When local real estate prices were rising rapidly, he thought he made a real killing when he found a lender willing to give him a big nonrecourse HELOC. When Steve stopped paying on the HELOC, the lender foreclosed. At that time, the first mortgage balance was $175,000, and the HELOC balance was $100,000. The property's basis was only $180,000.

Under the aforementioned deemed sale treatment, the foreclosure triggers a $95,000 gain ($275,000 total nonrecourse debt balance - $180,000 basis = $95,000). Assume Steve qualifies to exclude the entire gain under the home sale gain exclusion break. That is the end of the story, because the mortgage lenders cannot come after him for any deficiency.

Example 2: Same basic facts, except now assume Steve's property is a vacation home. The $95,000 gain is a capital gain that cannot be excluded because the home sale gain exclusion break is only available for principal residences. Therefore, Steve will pay tax on the whole gain unless he has some offsetting capital losses. The good news is the mortgage lenders cannot come after him for any deficiency.

The Bottom Line

With a nonrecourse mortgage, the single most important thing to understand is that the lender cannot come after you for any deficiency after the foreclosure sale.

Tax-wise, the most important thing to understand is that a principal residence nonrecourse mortgage foreclosure can result in a gain. Thankfully, the gain will often be federal-income-tax-free thanks to the home sale gain exclusion break (state income tax results may vary).

Rallying On Decent News, Flat On Bad: Pending Bull Market?

The market had a great day yesterday on the back of strong data out of Europe, China, and some in America. The ISM Index here at home improved MoM, but it did miss expectations as it moved to 54.1. ADP Employment was also released but came in under expectations at 170K. Construction spending was better than expected at 1.5%. Overall, the data was decently positive. Europe and China showed some good manufacturing data, and there was good news out of Greece that they were nearing a debt-swap deal. The market liked this good news and powered higher.

Moving into today, we are getting into a situation now where we are rallying on decent news and flat on bad news. That is a great sign of a bull market. When will it stop? Good question.

Two stocks on our radar are Weight Watchers (WTW) and Monster Beverage (MNST). We like WTW right now as a company that should continue to stay solid into earnings on Feb. 14th and has upside from those earnings as the company is expecting large growth. The options market is pricing in a lot of volatility, and you can still get around 10% in premium selling options as low as 65/62.50 bull put spread, which is over 13% below current price. Additionally, we are watching MNST. The stock has weakened as of late. Earnings are coming in late February, and on any further drops, we would be a buyer. MNST is a strong stock that should be bought on weakness as funds want to own it. It should run up into earnings.

Today we will get some more information about employment with jobless claims and Challenger Job Cuts. Both reports will be more scrutinized moving into non-farm payrolls on Friday. Earnings are also going to be crucial from Chiptole (CMG), Dow Chemical (DOW), Green Mountain Coffee Roasters (GMCR), Kellogg (K), Las Vegas Sands (LVS), Qualcomm (QCOM), and more.

We had a good day yesterday as we got a 2% gain in Ultrashort ProShares DJ-UBS Crude Oil (SCO) that we entered intraday. We got out of a long Cummins (CMI) position we had for a 1% gain. We hit our 0.05 target on sold Blackstone (BX) $14 puts for 26% gain. We also got gains in our Extended Value Portfolio (long-term) in Microsoft (MSFT) as it hit 30.00 for 9.7% gain as well as Vanguard Emerging Markets ETF (VWO) for 10% gain as it hit 43.00.

We have the following positions. In our Short-Term Equity Portfolio we are long Polo Ralph Lauren (RL) and SCO. In our Options Portfolio, we are long Apple (AAPL), Priceline (PCLN), Dollar Tree (DLTR). We are short Deckers Outdoor (DECK) and SPDR S&P500 ETF (SPY). In our Earnings Portfolio, we are long VF Corp. (VFC), CarMax (KMX), Avis Budget (CAR), Vertex Pharma (VRTX), EOG Resources (EOG) and Ashland (ASH). We are short AOL (AOL). We have an iron condor in Amazon (AMZN) as well.

Chart courtesy of finviz.com.

Disclosure: I am long SCO.

Are You A Unhealthy Boss? Could You Be Higher?

convert VOB to AVI

This statistic should ship a chill via your coronary heart: in line with a latest survey by The Gallup Group, when staff were asked in a scientific means what made them happiest in the course of the day, spending time with their boss ranked lifeless last–after doing household chores! Analysis additionally revealed that the Number One cause individuals give up their jobs is a poor relationship with their supervisor. You’re not The Enemy–at the very least I hope you do not have an adversarial relationship along with your staff–so what’s causing all this unhappiness?

As a enterprise owner I can multi-activity with the perfect of them, but I know the overwhelm we face, and I admit one of many first things to undergo might be our daily interactions with our team. Especially when you have got good staff you realize you possibly can rely on, it’s easy to slip into taking them with no consideration, but in this competitive market, that is a foul concept–a really dangerous idea. I know of a boss in Florida who would fortunately pay a $50,000 charge to fill each of several long-standing administrative openings. That’s how desperate he’s, and it’s solely going to get worse.

While predicting numbers of recent jobs and whether the workers can be there to fill them is an inexact science, most specialists interpret information from the U.S. Bureau of Labor Statistics to mean there can be a major shortage of expert staff in the near future–which can solely escalate as Child Boomers start turning sixty two in 2008. Some labor analysts predict the U.S. economy will face a shortfall of 10 million staff by 2012. Even if there are sufficient individuals in search of jobs to match the variety of openings, not sufficient of them will have the coaching and experience needed for the obtainable positions, causing better competition for the most certified workers. Already, skilled, succesful staff can demand jobs that go well with their wants–it’s a vendor’s market.

Here’s what analysis reveals staff need from their bosses:

� to have clarity about their duties

� to have the necessary tools to carry out their job

� to be acknowledged for meeting goals and doing good work

� to have their enter sought and valued

� to be inspired to grow

� to be trusted and respected

� to be included in making plans that have an effect on them

� to be cared about as a person

How do you suppose you’d fee based on that checklist? When you’d actually prefer to know, download my free survey and hand it out to your staff.

Another hallmark of excellent bosses is that they concentrate on their group members’ strengths and positive characteristics, quite than berating and hounding them for their mistakes. Gallup statistics point out that seventy seven% of staff who are engaged in their jobs really feel that means, while solely 23% of the less-engaged and four% of non-engaged staff really feel supported in that way. There’s undoubtedly reciprocal motion taking place: the extra engagement a group member expresses, the extra positive suggestions she receives; but you can additionally say that the extra a employee is encouraged, the extra engaged in your online business she becomes.

What about flexibility? When group members bring new ideas to you, what’s your response? In my book, Discovering Pleasure In Your Job, I coach staff easy methods to find extra achievement in the jobs they already have. In one section, I describe the highest Six Nixers, bosses who throw buckets of water on each sizzling new concept they hear. To stay–or change into–engaged along with your mission, your staff must really feel like they can broach new ideas, suggest enhancements and improve systems. When’s the last time you applied an employee innovation? If you can’t bear in mind when, then you might need to start in search of group input.

Ironically, my own analysis in giving workshops across the nation reveals that bosses and staff truly need the identical primary things. Staff need to do good work and be valued for it, and you need to reward wonderful work. They need to be able to talk candidly with you, and you need to have productive communication with them.

I contend that any boss could change into higher, and that the payoffs far outweigh the costs. You probably have valued staff you need to retain or in the event you’re actively searching for new group members, I urge you to start by looking in the mirror, encouraging group suggestions and changing into the type of boss your group members need to companion with. Spending time with you certainly must rank increased than mopping floors!

About The Creator

Nathaniel has been writing articles on-line for practically 7 years now. Not solely does this author focus on project management, you too can take a look at his newest web site on easy methods to convert VOB to AVI with VOB to AVI converter which also helps people find the best VOB to AVI converter on the market.

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Double Top in Cyclicals?

The stock market is getting knocked again today, but the pain isn’t evenly spread out. Who’s up for another look at the relative strength of cyclicals? Great, me too!

As long-term readers know, one of my favorite metrics to follow is the Morgan Stanley Cylical Index (^CYC) divided by the S&P 500 (^SPX). This is far from a comprehensive analysis, but it is a quick-and-dirty look at the “mind of the market.”

Since late August, the market’s rally has been disproportionally powered by cyclical stocks. In fact, the ratio of the CYC to the S&P 500 reached an all-time high on February 11 (my data goes back to 1978).

The ratio hit a previous peak on January 10 and, soon after, cyclicals dropped off sharply. I quickly jumped on this and thought it was the end of the cycle. Wrong! The ratio soon rallied and peaked on February 11, just a hair above the level for January 10 (0.8442 to 0.8441).

The CYC is down again today (although many energy names are up). If today’s numbers hold up, the ratio will close below the low made on January 21.

The reason these cycles are so important is that once they get going, they often last for a few years. Put it this way, if the Dow had kept pace with the CYC since the low from two years ago, the Dow would be over 24,000 today.

[Click to enlarge]

What is Stock Investment?

Knowledge of what is a stock market and whу you should invest in it is essential for every budding entrepreneur in this area. Bυt before thаt, one mυѕt know the meaning of investment and іtѕ importance in the context of stock market.

Whаt is investment?

Investment, simply рƖасе, is a process of purchasing assets in order to make profits. A profit is usually a reasonable and predictable quantity of income over investment. It is unlike gambling, where you can make or lose hυɡе amounts in matter of moments. Thе income from legitimate investment mау come in forms of dividends, interest or rentals and appreciations over the long term.

Whу should you invest?

Money ԁοеѕ not grow by itself unless it is invested. Money should not just grow but it should also grow sufficiently to annul the effects of rising inflation. Thе rate of returns on your investments should be greater than the rate of rise in inflation so that you are left with sufficient quantity to meet your needs over a period of time.

Whеn you invest your money in stocks, your objective should be to mаkе wealth not only for your daily needs, but also for retirement, marriage, culture, vacations, entertainment, medical expenses, and purchasing real estate etc.

Yου mау also aim at humanizing your standard of living or leave your money to your next generation. Yου mау also want a little superfluous money to have some fun in your life that you have been рƖοttіnɡ.

Above аƖƖ, building money by itself is an exciting morale booster. It increases self-confidence, self esteem and puts springs in your feet. Money is considered next to God, if there is one.

Whаt is the optimum time to invest in stock market?

It is always better to try mаkіnɡ manifold streams of income including from stock markets. If you are already employed, ѕtаrt investing in stocks as a part time job.

Sіnсе it takes sufficient time and experience to master the intricacies of every trade, it is advisable to ѕtаrt investing in stocks as early as you become legal and get your social security and IRS identification facts. An early bird is always a winner.

Stаrt small and be cautious. Take your time to learn the fundamentals of stock investing. Another vital reason whу you should invest early is that your money will have sufficient time to grow.

Thеrе are several stock investment plans which are comparatively risk free and generate geometrical returns on your investment without mаkіnɡ needless tensions that are invariably associated with most businesses.

Money grows qυісk with compounding effect. Compounding, according to Einstein, is the eighth wonder of the world, but it requires time to ѕhοw іtѕ effects. Thе more time it is given, the more money it returns on investment. Sο if you ѕtаrt investing in stock market as soon as you become a major, you give your investment the maximum possible time to grow.

Invest regularly

One reason whу you should ѕtаrt investing early in stocks is that you can invest regularly over a long span of time. Thе concept of regularity is inherently related to a longer span of time. Yου саnnοt be a regular investor for just six months and expect any appreciable returns. Regularity can fructify only if it is practiced over a sufficiently long span of time-fοr decades. It is like corporal exercise. Yου саnnοt build (financial) muscle just in a few days.

Consult your stock broker about which stock investment рƖοt suits your individual circumstances. Set apart some quantity-even a small quantity– from your monthly income and authorize your broker to automatically draw that quantity from your bank account for investment in your decided рƖοt. Jυѕt don’t forget to check the results of your investment at nominal amount for an appreciable time. Thе returns mау appear measly at the earlier stage, but you will be blown off if you check them after some time.

Thе golden rule, therefore, is that you should invest regularly over a long period of time. Thеrе are several stock investment plans such as Individual Retirement Account-IRA– Roth IRA, Culture Saving Account-ESA, 401(K), 403(b) etc.

Knowledge is power

Study the various stock investment options in deep detail. Consult your broker. Read books and magazines, both online and offline, so that you can take fool proof and self-informed decisions. Aѕ you study and act more, you will evolve an impeccable intuition about the areas and suitable time for investment.

7 Fossil Fuel Stocks Stuck In The Mud

People say money makes the world go round. But, those in the know realize this isn’t true. What makes the world go round is the same thing that allows you to sleep comfortably at night. It is the same thing that powers your car on the way to work. It is also the same thing that can arguably cause more harm to the environment than it can benefit the people who use it. The fuel that makes the world go round is, in fact, fuel itself.

Unfortunately, as fruitful of a resource oil, gas and other consumable fuels are to the people of this wide world, there are companies that are struggling to create positive returns from it. I watch more than 5,000 publicly traded companies with my Portfolio Grader tool, ranking companies by a number of fundamental and quantitative measures. This week, I’ll tell you about seven oil, gas and consumable fuels stocks that have been having a tough time over the past 12 months.

Here they are, in alphabetical order. Each one of these stocks gets a �D� or �F� according to my research.

Arch Coal (NYSE:ACI) is a coal producing company. ACI has posted a significant loss of 58% in the last year. ACI stock a �D� for operating margin growth, an �F� for earnings growth, an �F� for earnings momentum, an �F� for its ability to exceed the consensus earnings estimates on Wall Street and an �F� for the magnitude in which earnings projections have increased over the past month in my Portfolio Grader tool. For more information, view my complete analysis of ACI stock.

Encana (NYSE:ECA) is a producer of natural gas that has watched its stock value dip 40% in the last 12 months. ECA stock gets a �D� for sales growth, an �F� for operating margin growth, an �F� for earnings growth, an �F� for cash flow and a �D� for return on equity in my Portfolio Grader tool. For more information, view my complete analysis of ECA stock.

Hess (NYSE:HES) is an explorer and producer, as well as a marketer and refiner for integrated oil products. In the past year, HES stock is down 33%. HES stock gets a �D� for operating margin growth, an �F� for earnings growth, an �F� for earnings momentum, an �F� for its ability to exceed the consensus earnings estimates on Wall Street, a �D� for the magnitude in which earnings projections have increased over the past month and an �F� for cash flow in my Portfolio Grader tool.For more information, view my complete analysis of HES stock.

Petrobras Petroleo Brasileiro (NYSE:PBR) is a Brazilian integrated oil and gas company and has posted a loss of 13% in the last year. PBR stock gets a �D� for earnings growth, a �D� for the magnitude in which earnings projections have increased over the past month and a �D� for cash flow in my Portfolio Grader tool. For more information, view my complete analysis of PBR stock.

Southwestern Energy (NYSE:SWN) is involved with the exploration, development and production of oil and natural gas. In the past year, SWN stock has dropped 21%. SWN stock gets a �D� for operating margin growth, a �D� for its ability to exceed the consensus earnings estimates on Wall Street and a �D� for cash flow in my Portfolio Grader tool. For more information, view my complete analysis of SWN stock.

Talisman Energy (NYSE:TLM) is a global, diversified, upstream oil and gas company. TLM is down 48% in the past 12 months. TLM stock gets a �D� for operating margin growth, an �F� for its ability to exceed the consensus earnings estimates on Wall Street and an �F� for cash flow in my Portfolio Grader tool. For more information, view my complete analysis of TLM stock.

Total S.A. (NYSE:TOT) is an oil and gas company based in France. TOT rounds out the list with a loss of 10% in the last 52 weeks. TOT stock gets an �F� for sales growth, a �D� for earnings growth, a �D� for its ability to exceed the consensus earnings estimates on Wall Street, a �D� for the magnitude in which earnings projections have increased over the past month and a �D� for cash flow in my Portfolio Grader tool. For more information, view my complete analysis of TOT stock.

Get more analysis of these picks and other publicly traded stocks with Louis Navellier�s Portfolio Grader tool, a 100% free stock rating tool that measures both quantitative buying pressure and eight fundamental factors.