AirAsia X Likely to Delay IPO

KUALA LUMPUR�AirAsia X Bhd ., the long-haul arm of Southeast Asia's largest budget carrier by fleet size, is likely to delay a planned $250 million initial public offering in Malaysia until after general elections there are held, two people familiar with the process said Friday.

AirAsia X, a unit of AirAsia Bhd., had planned to list by March, one of the people said. "The elections will likely cause a slight delay," the person said.

Malaysia's general elections are required by law to be held by June 27, but are widely expected to take place earlier.

State-run news agency Bernama on Thursday quoted Prime Minister Najib Razak as saying Parliament could be dissolved "very, very soon."

Investors in Malaysia's equity markets often turn jittery before and immediately after general elections. In 2008, the 30-share benchmark Kuala Lumpur Composite Index tumbled nearly 10% on the first day of trading after the National Front coalition, which has ruled Malaysia since independence in 1957, lost its two-thirds majority in Parliament for the first time.

"It is smart to let the election risk pass, so that investors can take better-informed decisions," the second person said.

Last year was a banner year for IPOs in Malaysia, which vaulted to fifth place globally by deal value. It is expected to struggle to retain that ranking this year, but a number of big-ticket deals, such as power producer Malakoff Corp Bhd.'s planned $1 billion IPO, will help keep the country in the deals headlines.

In any case, it looks to be a busy market year for AirAsia. Chief Executive Tony Fernandes told The Wall Street Journal last month that the group hopes to list Indonesia AirAsia, in which it holds 49%, on the Jakarta stock exchange in the third quarter.

AirAsia X still plans to sell up to 790 million shares�equivalent to a one-third stake�in its IPO, one of the people said.

According to the draft prospectus, 685.6 million shares were to be allotted to institutional investors and 104.4 million shares to retail investors. The company hasn't disclosed the pricing.

More than half of IPO proceeds will be used to repay bank loans, while around a fifth will fund capital expenditure, including the purchase of equipment and spare parts for aircraft, the prospectus said.

AirAsia X owns a fleet of nine Airbus A330-300s for scheduled services and has two A340-300s for wet-lease and charter operations flying to 12 destinations across Asia and the Middle East.

The company has appointed CIMB Investment Bank as its principal adviser to the IPO. Maybank Investment Bank, CIMB and Credit Suisse are the joint global coordinators.

Write to Abhrajit Gangopadhyay at Abhrajit.gangopadhyay@dowjones.com

Top Stocks To Buy For 2/15/2013-5

Tortoise North American Energy Corp (NYSE:TYN) witnessed volume of 96,312.00 shares during last trade however it holds an average trading capacity of 18,418.00 shares. TYN last trade opened at $22.20 reached intraday low of $20.77 and went +0.22% up to close at $22.30.

TYN has a market capitalization $140.38 million and an enterprise value at $164.61 million. Trailing twelve months price to sales ratio of the stock was 68.71 while price to book ratio in most recent quarter was 0.88. In profitability ratios, whereas operating profit margin for the same period at -13.15%.

The company made a return on asset of -0.09% in past twelve months and return on equity of 23.63% for similar period. In the period of trailing 12 months it generated revenue amounted to $2.04 million gaining $0.32 revenue per share. Its year over year, quarterly growth of revenue was -94.20%.

According to preceding quarter balance sheet results, the company had $2.28 million cash in hand making cash per share at 0.36. The total of $26.50 million debt was there putting a total debt to equity ratio 16.66. Moreover its current ratio according to same quarter results was 0.08 and book value per share was 25.27.

Looking at the trading information, the stock price history displayed that its S&P500 52 Week Change illustrated 6.99% where the stock current price exhibited down beat from its 50 day moving average price of $23.84 and remained below from its 200 Day Moving Average price of $24.70.

TYN holds 6.30 million outstanding shares where insider possessed 14.41% and institutions kept 13.30%.

Battle Royale: Athena Health vs. Titanium Metals.

Listen to the Battle Royale, a regular feature in our�Supernova�premium service where Fool co-founder David Gardner pits two stocks against each other. Which one will emerge victorious?We're giving you a free sneak peek into this segment that was taped in April 2012.

For more stock ideas, check out our free report "3 Stocks That Will Help You Retire Rich," in which we name stocks that could help you build long-term wealth and retire well, along with some winning wealth-building strategies that every investor should be aware of.

* Titanium Metals (NYSE: TIE) was acquired by� Precision Castparts Corp. (NYSE: PCP  )
Listen to the previous battle.Listen to the final battle.

Transcript:

Max Keeler: So let's get to our other pairing. We have Athena Health (NASDAQ: ATHN  ) vs. Titanium Metals (NYSE: TIE) .

David Gardner: Right, and for this one I'm going to stick with the surer bet, so I'm going to go with Titanium Metals. Athena Health is a really interesting emerging company; I encourage our members to take a look and join us on the Rule Breaker discussion board for Athena Health.

I mean as a 10-year play, Athena might well outperform Titanium Metals, but just for the year ahead, maybe I'm feeling a little bit more cautious after a great first quarter for the stock market, although by no means am I a market timer and I'm definitely not making any kind of cold feet call about the market in the year ahead.

Max: This is fun, we're having fun here.

David Gardner: Yeah, we're having fun, so Titanium Metals advances.

Can HP Hold On to Its Dow Seat?

The Dow Jones Industrial Average (DJINDICES: ^DJI  ) is a pretty stable group. Only three of the 30 current members have joined in the last four years. The entire index was unchanged for 27 years, between 1959 and 1976. All in all, the roster has changed just 49 times since its inception in 1884 for an average of 2.6 years between every iteration.

But there might be change afoot again less than a year after UnitedHealth Group (NYSE: UNH  ) snagged a seat. Kraft Foods (NASDAQ: KRFT  ) split into two companies that didn't have enough individual heft to stay on the Dow, leaving a spot open for the health insurance giant. UnitedHealth has outperformed both the Dow and the core Kraft ticker by a hair since that index change.

I can smell another breakup like Kraft's coming. This time, analysts and activist investors agree that Hewlett-Packard (NYSE: HPQ  ) would be better off if the company were split up and sold for parts.

Investors might benefit from HP separating into a consumer business and an enterprise vendor, because this would give the company a chance to allocate the right resources where they are needed -- without trampling on the concerns of the other half. CEO Meg Whitman doesn't like the idea at all, noting that turnarounds of this magnitude take lots of time. In this case, HP's recovery could be five years away.

Moreover, HP's sector is going through some major changes right now. On the consumer side, PC systems are losing mind share and market share to tablets and smartphones. Meanwhile, cloud-based services have overthrown the traditional server market. Even if HP does the sensible thing and splits up, each segment would still have a hard time turning its fortunes around.

For what it's worth, a split would almost certainly remove HP from the Dow for much the same reasons Kraft had to go. Two tickers can't inhabit one Dow slot, and the united company is already the third-smallest of all 30 Dow members. The stock has lost 65% of its value over the last three years, and cutting it in half again would kill its standing as a credible blue-chip investment.

HPQ data by YCharts.

Keep an eye out for news on HP's future, because there might be some Dow drama written between the lines.

Following the massive wave of mobile computing, HP is rapidly shifting its strategy under the leadership of CEO Meg Whitman. But does this make HP one of the least appreciated turnaround stories on the market, or is this a minor detour on its road to irrelevance? The Motley Fool's technology analyst details exactly what investors need to know about HP in our new premium research report. Just click here now to get your copy today.

Can Allscripts Healthcare Solutions Beat These Numbers?

Allscripts Healthcare Solutions (Nasdaq: MDRX  ) is expected to report Q4 earnings on Feb. 19. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Allscripts Healthcare Solutions's revenues will wither -5.4% and EPS will wither -16.0%.

The average estimate for revenue is $367.1 million. On the bottom line, the average EPS estimate is $0.21.

Revenue details
Last quarter, Allscripts Healthcare Solutions logged revenue of $360.7 million. GAAP reported sales were 0.8% lower than the prior-year quarter's $363.7 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, non-GAAP EPS came in at $0.23. GAAP EPS of $0.05 for Q3 were 50% lower than the prior-year quarter's $0.10 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 43.5%, 100 basis points worse than the prior-year quarter. Operating margin was 5.6%, 380 basis points worse than the prior-year quarter. Net margin was 2.6%, 270 basis points worse than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $1.46 billion. The average EPS estimate is $0.71.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 435 members out of 464 rating the stock outperform, and 29 members rating it underperform. Among 116 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 109 give Allscripts Healthcare Solutions a green thumbs-up, and seven give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Allscripts Healthcare Solutions is outperform, with an average price target of $11.68.

Is Allscripts Healthcare Solutions the best health care stock for you? Learn how to maximize your investment income and "Secure Your Future With 9 Rock-Solid Dividend Stocks," including one above-average health care logistics company. Click here for instant access to this free report.

• Add Allscripts Healthcare Solutions to My Watchlist.

Top Stocks For 2/15/2013-17

EQ Labs, Inc. (Pink Sheets:EQLB), inventor and marketer of the EQ Energy Drink, reports that its sales for the six months ended June 30, 2010 increased 40% compared to the same period in the previous year. Earlier this year, the company had reported a sales increase of 300% percent in the Las Vegas Region.

“We expect to perform very well this year for our shareholders,” Chief Executive Officer, Maurice Owens, said in a statement. “Our innovative and great tasting products are being well received by consumers in some key markets throughout the United States.

EQ Energy Drink is currently sold in 800 stores in 48 states. The EQ Energy drink is the only effervescent-based tablet on the market today that is specially formulated with a combination of essential herbs and nutrients to easily dissolve in any beverage resulting in sustainable energy and a heightened sense of focus. The company is engaged in the process of recruiting additional international “sports” celebrities to endorse the EQ Energy Drink.

Mr. Owens concluded, “We are extremely pleased regarding the market acceptance of our product this year. We expect these positive trends to continue and we anticipate the ability to deliver continued good news to our loyal shareholders.”

Attitude Drinks (ATTD.OB) is proud to report the launch of Phase III �Recovery�, a revolutionary, innovative sport and fitness recovery drink melding the unparalleled benefits of milk, nature�s most perfect food, with the very latest scientific research. Using patented technology, this cutting edge recovery drink is the only to offer 100% USDA Grade ‘A’ Real Milk, the most recognizable source of protein to the tired body. Additionally, formulated with an optimal scientific balance of carbohydrates to protein essential to physical recovery, Phase III �Recovery� is truly cutting edge and in a league of its own.

Phase III is reduced sugar, low fat, grade A flavored milk that features 29% less sugar and more than 2 times the protein of regular chocolate milk. In creating this revolutionary drink, Attitude Drinks filtered out lactose and much of the sugar naturally found in low fat milk. While Phase III has no protein added, the concentrated mineral and nutrient rich milk provides 35 grams of protein and the taste and mouth feel of low fat chocolate milk. This process enables strategically balanced protein and carbohydrate levels and fortification with a robust list of nutrients and electrolytes. Phase III is packaged in 14.5 ounce re-sealable, environmentally �green� bottles.

PepsiCo’s (NYSE:PEP) Gatorade line of performance drinks adds over 40 years of rehydration and sports nutrition research.

In 2010, Gatorade introduced the G Series; a new line of products from Gatorade that go beyond hydration to provide fuel, fluid and nutrients before, during and after the game.

Gatorade Prime 01: Pre-game fuel in a convenient 4-oz. pouch, designed to be used in the 15 minutes before the game to provide energy by maximizing the availability of carbohydrate energy to muscles.

Gatorade Perform 02: The proven Gatorade Thirst Quencher that offers a scientifically-formulated blend of carbohydrates and key electrolytes, and is designed for use during the game to help athletes rehydrate, replenish electrolytes and refuel with carbohydrate to push through all four quarters.

G2 Perform 02: A low-calorie sports drink that delivers functional hydration to athletes during the game, but with less than half the calories of Gatorade Thirst Quencher.

Gatorade Recover 03: The first protein recovery beverage with the consistency of a thirst quencher. Recover 03 is formulated for use immediately after the game (within 30-60 minutes) for rehydration and to promote muscle recovery.

Should I Invest in Marks & Spencer?

LONDON -- To me, capital growth and dividend income are equally important. Together, they provide the total return from any share investment, and, as you might expect, my aim is to invest in companies that can beat the total return delivered by the wider market.

To put that aim into perspective, the FTSE 100 has provided investors with a total return of about 3% per annum since January 2008.

Quality and value
If my investments are to outperform, I need to back companies that score well on several quality indicators and buy at prices that offer decent value. So this series aims to identify appealing FTSE 100 investment opportunities, and today I'm looking at Marks & Spencer Group (LSE: MKS  ) , which has a chain of high-street clothing and food retail stores in Britain and overseas.

With the shares at 387 pence, Marks and Spencer's market cap. is 6.2 billion pounds.

This table summarizes the firm's recent financial record:

�	2008	2009	2010	2011	2012
Revenue (millions of pounds)	9,022	9,062	9,537	9,740	9,934
Net Cash From Operations (millions of pounds)	1,070	1,291	1,229	1,200	1,203
Adjusted Earnings Per Share (pence)	43.6	28	33	34.8	34.9
Dividend per Share (pence)	22.5	17.8	15	17	17

The table shows a flat financial performance over the period and tells the story of the challenges facing traditional retailers these days. Against a background of structural change in the industry, with consumers shifting to non-high-street shopping, Marks & Spencer has also had to cope with the recent economic slowdown, which has customers often trapped between falling incomes and a rising cost of living. Under such pressures, it's natural for people to axe luxuries such as posh food and new undies from domestic budgets.

The firm is fighting back, though, and it plans to "transform Marks & Spencer from a traditional U.K. retailer to an international multi-channel retailer." That's a laudable goal, but a lot of work remains. Last year, although growing at an 18% clip, multichannel revenue accounted for about 6% of overall sales.

There are about 700 U.K. stores and what the company describes as an expanding international business, all of which employs some 78,000 people. The U.K. accounts for about 84% of operating profit, with the remaining 16% coming from international sales. The sales mix is something like 47% food and 53% general merchandise.

I think Marks and Spencer's total-return potential is uncertain. If it can expand its multichannel operation, it could offset what seems like the effects of an otherwise weakening business model. However, I can't help thinking that overall, the table for the next five years' finances might end up looking similar to the one shown here -- if we are lucky!

Marks & Spencer's total-return potential
Let's examine five indicators to help judge the quality of the company's total-return potential:

1. Dividend cover: Adjusted earnings covered last year's earnings just more than twice. Score: 4/5

2. Borrowings: Net gearing of 115% with net borrowings almost four times earnings. Score: 2/5

3. Growth: All of revenue, earnings, and cash flow have been flat. Score: 3/5

4. Price to earnings: A forward 11 looks fair compared to growth and yield forecasts. Score: 3/5

5. Outlook: Recent trading is mixed, and the outlook is cautious. Score: 2/5

Overall, I score Marks & Spencer 14�out of 25, which makes me cautious about the firm's potential to outpace the wider market's total return going forward.

Foolish summary
Although dividend cover is satisfactory, the firm has a lot of debt, which could cause difficulties if the decline in high-street sales accelerates. Financial performance has been flat, and the outlook is cautious. I think Marks & Spencer's valuation reflects its prospects.

Forecasters expect the company to yield about 4.7% next year, which seems attractive. But how fast can that dividend payment grow? As an alternative, I'm with The Motley Fool's top value investor, who has discovered what he believes is the best income-generating share for 2013. He sets out his three-point investing thesis in a report called "The Motley Fool's Top Income Share For 2013," which I recommend you download now. For a limited time, the report is free so, to download it immediately and discover the identity of this dividend-generating star, click here.

DaVita HealthCare Partners Beats on Both Top and Bottom Lines

DaVita HealthCare Partners (NYSE: DVA  ) reported earnings on Feb. 14. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), DaVita HealthCare Partners beat expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue increased significantly and GAAP earnings per share shrank slightly.

Margins dropped across the board.

Revenue details
DaVita HealthCare Partners notched revenue of $2.55 billion. The eight analysts polled by S&P Capital IQ expected to see a top line of $2.43 billion on the same basis. GAAP reported sales were 33% higher than the prior-year quarter's $1.86 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $1.68. The 14 earnings estimates compiled by S&P Capital IQ anticipated $1.59 per share. GAAP EPS of $1.51 for Q4 were 2.6% lower than the prior-year quarter's $1.55 per share. (The prior-year quarter included -$0.01 per share in earnings from discontinued operations.)

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 31.3%, 350 basis points worse than the prior-year quarter. Operating margin was 15.6%, 320 basis points worse than the prior-year quarter. Net margin was 6.3%, 170 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $2.76 billion. On the bottom line, the average EPS estimate is $1.79.

Next year's average estimate for revenue is $11.15 billion. The average EPS estimate is $7.41.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 303 members out of 315 rating the stock outperform, and 12 members rating it underperform. Among 95 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 94 give DaVita HealthCare Partners a green thumbs-up, and one give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on DaVita HealthCare Partners is outperform, with an average price target of $123.13.

Is DaVita HealthCare Partners the best health care stock for you? Learn how to maximize your investment income and "Secure Your Future With 9 Rock-Solid Dividend Stocks," including one above-average health care logistics company. Click here for instant access to this free report.

• Add DaVita HealthCare Partners to My Watchlist.

New Zealand Property Market Starts 2013 Strong

Statistics provided by the Real Estate Institute of New Zealand indicate that the country’s residential real estate market saw its highest monthly rate of transactional volume in January than it’s seen in the past five years. Sales were up 21% for January compared to the same period last year and increased 4.2% for the year-on-year average. Agents are reporting shortages in inventory and nearly every region of the country has seen improvement in sales volume and the number of days to sale. Even so, the REINZ Stratified Housing Price Index still dropped 1% for the month. For more on this continue reading the following article from Property Wire.

The residential real estate market in New Zealand has seen a solid start to the year with sales up 21% last month compared with the previous year and median prices up 4.2% year on year.

There was a new record median house price for Taranaki last month and sales by auction in January 2013 almost double those of January 2012, the figures from the Real Estate Institute of New Zealand show.

The organisation says that robust demand drove sales volume growth in the residential property market during January to the highest level for the month in five years.

‘The residential real estate market has begun 2013 in good shape with a more than 20% increase in sales volume on this time last year,’ said Helen O’Sullivan, chief executive of REINZ.

Although the national median price eased from its December level it remained 4.2% above the level reported at the  same time last year and O’Sullivan said that given the highly seasonal nature of the housing market, prices and volumes tend to ease from their year end levels in January as marketing campaigns for many properties in the upper price bracket don’t begin until the latter half of the month.

‘Agents across the country are reporting continuing shortages of listings and positive buyer enquiry, even after taking into account the normal slowdown in activity over the Christmas and New Year break,’ she explained.

There has also been a six day improvement in the number of days  to sell between January 2013 and January 2012 and this is indicative of high levels of buyer activity in markets across the country.

All but one region recorded increases in sales volume compared to January last year, with Southland recording an increase of 40.4%, followed by Northland with 38.5% and Auckland with 26.7%. Only Southland recorded an increase in sales volume in January compared to December, with a 2.5% increase, while Taranaki recorded the same number of sales as December.
 
The national median house price fell by $19,000, from $389,000 in December, to $370,000 in January, a drop of 4.9%. Taranaki recorded a new record high median of $310,500 in January with a 10.5% increase compared to December. Hawkes Bay was the only other region to record an increase in the median price in January.

The national median house price is up 4.2% compared to January 2012, while the Auckland median price is up 8.1% compared to January 2012.  The Canterbury/ Westland median rose 5.8% and Nelson/Marlborough 4.6%.
 
The REINZ Stratified Housing Price Index, which adjusts for some of the variations in mix that can impact on the median price, is 7.2% higher than January 2012 and eased 1% compared to December. The Auckland Stratified Housing Price Index is up almost 12% compared to January 2012.
 
All regions, with the exception of Hawkes Bay and Taranaki, saw an improvement in the number of days to sell between January 2012 and January 2013. In January Canterbury/Westland recorded the shortest days to sell at 31 days, followed by Auckland with 33 days and Nelson/Marlborough with 40 days. Waikato/Bay of Plenty and Hawkes Bay both recorded the longest number of days to sell at 60 days, followed by Northland with 59 days and Taranaki with 55 days.  Over the past 10 years the median days to sell for the month of January has averaged 44 days across New Zealand.

 

Nationally there were 449 dwellings sold by auction in January representing 9.1% of all sales, almost double the number of sales by auction compared to January 2012. For the 12 months to January the total number of auctions reached 12,168 or 16.3% of all sales, compared to 7,195 or 11.6% of all sales for the 12 months to January 2012.

Transactions in Auckland again dominated the auction market in January, representing 73.5% of the national total of auction sales. Some 18.3% of all dwelling sales in Auckland were by this method in January, up from the 11.2% of sales by auction in January 2012. Sales by auction in Waikato/Bay Of Plenty accounted for 10.9% of the national total, Canterbury/Westland accounted for 6.7% of the national total, and all other regions combined accounted for the remaining 8.9% of auction sales in January 2013.

Across New Zealand the total value of residential sales, including sections was $2.24 billion in January, compared to $2.73 billion in December, and $1.72 billion in January 2012. For the 12 months ending in January 2013 the total value of residential sales was $34.47 billion.

The REINZ Housing Price Index eased 1% in January compared with December to sit at 3,488.1. Wellington rose 1.1% in January, while Auckland fell 2.1% and Christchurch 4.4%.  For the 12 months to January, the Auckland Index rose 11.8% and the Christchurch Index rose 9.9% compared to the National Index increase of 7.2%.

Outside of the main centres, the Other South Island Index was the next strongest with an increase of 3.9% for the 12 months to January 2013.

Opinion: Pravda on the Hudson360 comments

The New York Times's Jackie Calmes bravely speaks truth to power:

Inside the White House and out, advisers and associates have noted subtle but palpable changes in [President] Obama since his re-election. "He even carries himself a little bit differently," said one confidant who, like others, asked not to be identified discussing the president. He is relaxed, more voluble and even more confident than usual, these people say, freer to drop profanities or dismiss others' ideas--enough that even some supporters fear the potential for hubris.�.�.�.As the president prepares to outline his second-term agenda, it is clear from these personal accounts as well as his public acts, like his bold Inaugural Address, that he has shown an assertiveness, self-possession, even cockiness that contrasts with the caution, compromise and reserve that he showed for much of his first term.

As a formal matter, this article is "balanced": Calmes allows that, however awesomely impressive the president may be, future political successes are not assured (although "so far Mr. Obama has carried the day"). If you read far enough into the piece--though why you'd want to is anyone's guess--you'll even get to the obligatory quotes from Republicans.

Still the overall tone, exemplified by the quoted passage, which consists of the second and fourth paragraphs, is of a paean to the great leader. It's almost like reading official "news" from the (North) Korean Central News Agency or (for you old-timers) the old Soviet-era Pravda.

Pope Benedict XVI announced yesterday that he'll resign the papacy at the end of the month, and the Times's story looking ahead to the choice of a successor is weird in a different way. Reporters Rachel Donadio and Elisabetta Povoledo make the following assertion:

The resignation sets up a struggle between the staunchest conservatives, in Benedict's mold, who advocate a smaller church of more fervent believers, and those who believe that the church can broaden its appeal in small but significant ways, like allowing divorced Catholics who remarry without an annulment to receive communion or loosening restrictions on condom use in an effort to prevent AIDS. There are no plausible candidates who would move on issues like ending celibacy for priests, or the ordination of women.

There's no reporting to back up the prediction of a "struggle" (or a "battle," as the story's lead paragraph has it) between "conservatives" and--well, actually, the reporters don't give us a noun to describe the conservatives' putative opponents, so let's just call them people whose views are more in line with those of the Times's editorial page.

The closest we get to an elaboration on the claim is a reference to one possible contender, Canadian Cardinal Marc Ouelett, whom the reporters describe as "a dogmatic theologian." Imagine that! According to Donadio and Povoledo, "critics in his native Quebec said that he was out of step with the province's more progressive bishops, but that is not necessarily a drawback in today's church."

Enlarge Image

Close Associated Press

Obama and Benedict in 2009

Left out are who these critics are, why the other bishops are "more progressive," and how he's "out of step." About the only thing we know about his critics is where they are, although given that he's from Quebec and was archbishop of Quebec for several years, it's not surprising that his critics would be in Quebec.

Despite being based in Rome, the reporters don't seem to have a deep familiarity with the Catholic Church. They even quote a fellow journalist, from the Kansas City-based National Catholic Reporter, as an expert. What's really striking about the Times story, though, is its ideological perspective--one that views the Catholic Church through the distorting lens of contemporary American liberalism as that weird religion that discriminates against women and has some sort of hang-up about condoms. Again, it reminds us of the way totalitarian propaganda outfits "report" on enemy states.

If you think "enemy states" is overwrought, check out the Times op-ed page. In a piece titled "Farewell to an Uninspiring Pope," playwright John Patrick Shanley rants against the church:

Priests cannot marry. Why? I will tell you why. Priests cannot marry because they would have to marry women. Women cannot be priests.Why? Women cannot become priests because of a bunch of old men. These old men justify their beliefs with a brace of ridiculous arguments that Jesus would have overturned in a minute. .�.�. I have little reason to hope that the Church of Rome will suddenly realize that without women, the Catholic Church is doomed, and should be doomed.

Wait, hasn't he heard of nuns? Why yes he has. He continues: "I think of those good nuns who educated me, of their lifelong devotion and sacrifice. They have been treated like cattle by a crowd of domineering fools."

To be sure, this is an opinion piece, not a news story. Even the Times editorialists, although they may share Shanley's views, would never express them anywhere near as vividly. Still, it's hard to imagine the Times op-ed page publishing such a rant about, say, Islam--or, for that matter, about President Obama's leadership. And while the Shanley piece may strike some readers as edgy and adventuresome, our impression of the Times is colored more by Calmes's feather-soft coverage of the most powerful man in the world.

My Pet Conservative The University of Colorado's Boulder campus is trying a bold experiment, the local paper, the Daily Camera, reports. It's going to hire a conservative:

CU originally unveiled grand plans in 2007 to establish a visiting chair in conservative thought and policy, which would have required $7 million to $9 million to fund. But school officials have said the sluggish economy caused them to scale back plans and instead run a pilot program to bring visiting scholars to Boulder.CU has raised $1 million in donations for its visiting scholar in conservative thought and policy, a position that is funded for at least three years.As part of the selection process, each finalist will visit the campus for a day and meet privately with the search committee, chancellor, provost and dean of the College of Arts and Sciences. Each will also teach a class.Since last summer, an advisory committee made up of faculty and community members has been searching for candidates. The committee has sought a "highly visible" scholar who is "deeply engaged in either the analytical scholarship or practice of conservative thinking and policymaking or both."

The three finalists, Steven Hayward, Ron Haskins and Linda Chavez, all sound worthy, but the whole enterprise is an excellent example of the exception proving the rule. Such brazen tokenism wouldn't be necessary if CU--and higher education in general--weren't such a leftist monoculture.

Meanwhile, here's the latest whopper from former Enron adviser Paul Krugman:

Many conservatives, including old-line relatively moderate conservatives, were outraged by the political thesis of my book The Conscience of a Liberal (first published before the 2008 election)--which was that extreme movement conservatives took over the GOP a long time ago, were able to win elections by exploiting white resentment, but were on the verge of losing their grip thanks to demographic change.But that's pretty much exactly what Sam Tanenhaus, the Times book review editor and a long-time conservative, is now saying.

We know Tanenhaus, and he's no conservative. Much of his criticism of conservatism, including his New Republic piece to which Krugman alludes, is wrongheaded in our view. So why would Krugman mistake him for a conservative? Because he is sometimes respectful of conservative thought. He published a well-regarded biography of Whittaker Chambers and is supposedly writing an authorized biography of William F. Buckley. In contrast, for Krugman conservatives are a hate object and nothing more.

Gays Without Irony London's Guardian reports on the latest kerfuffle over same-sex marriage:

Comic giant DC has commissioned Orson Scott Card, author of the award-winning and best-selling Ender's Game sci-fi series, to write for DC's Adventures of Superman series. The digital comic is set to be published in April.The news has sparked a furious backlash from Card's critics. Card is a long-time critic of homosexuality and has called gay marriage "the end of democracy in America." In 2009 he became a board member of the National Organization for Marriage, a group that campaigns against same-sex marriage."Superman stands for truth, justice and the American way. Orson Scott Card does not stand for any idea of truth, justice or the American way that I can subscribe to," said Jono Jarrett of Geeks Out, a gay fan group. "It's a deeply disappointing and frankly weird choice."

Same-sex-marriage advocates would have more credibility in objecting to Card's warning about "the end of democracy in America" if they weren't trying to get him fired simply for expressing his opinion.

Other Than That, the Story Was Accurate

• "CORRECTION: An earlier version of this post incorrectly reported that Sarah Palin had signed on as a contributor to the Al Jazeera America news network. The blogger cited a report on the Daily Currant Web site as the basis for that information without realizing that the piece was satirical."--Washington Post website, Feb.�12
• "This article has been retracted at the request of the Editor-in-Chief. It is with great regret that readers are notified of the retraction of 3 Experimental and Clinical Transplantation papers from the laboratory of Dr. Maroun M. Abou-Jaoude, of the Department of Surgery, Sacr�-Coeur Hospital, Baabda-Hazmieh, Lebanon. The same retraction notice is being applied to 3 papers. The journal of Experimental and Clinical Transplantation was notified of several cases of ethical misconduct by Dr. Abou-Jaoude with regard to the use of unrelated living donors in his clinical practice, who constitute a large proportion of the patient population examined in the 3 articles mentioned. This is in direct violation of the Declaration of Istanbul on Organ Trafficking and Transplant Tourism endorsed by this Journal and the Middle East Society for Organ Transplantation."--Experimental and Clinical Transplantation, via RetractionWatch.com, Feb.�12

Out on a Limb

• "Krauthammer: 'State of the Union Will Be Extremely Aggressive and Partisan'"--headline, National Review Online, Feb.�12
• "Trump May Have Trouble Collecting on $5 Million Orangutan Bet"--headline, Reuters, Feb.�11

We Blame George W. Bush "Who's to Blame for the New Watered-Down Maker's Mark? Japan, Beam Inc., and Yourself"--headline, TheAtlantic.com, Feb.�11

Mission Accomplished "Obama: Job of Debt Reduction Nearly Done"--headline, Washington Post, Feb.�12

Longest Books Ever Written

• "How Obama Wins the Day and America Gets the Shaft"--headline, NationalJournal.com, Feb.�11
• "The Unscientific Hypocrisy of Paul Krugman"--headline, RealClearScience.com, Feb. 12

Southern Ireland's No Picnic Either

• "Crisis Awaits Kerry in Northern Ireland"--headline, Times Union (Albany, N.Y.), Jan.�30
• "Dublin Rule Like Kings Over Paltry Kerry"--headline, Irish Times, Feb.�11

Check Your Rack, Secretary Kerry "Harry Reid: I Still Have My 'Tree Farm' Hat"--headline, TheWeeklyStandard.com, Feb.�12

'The World According to TARP' "Geithner Plans Book on Battling Financial Crisis"--headline, Denver Post, Feb.�10

With DNC in Mind, City Bans Carrying Urine, Feces "Waste Is Seen in Program to Give Internet Access to Rural U.S."--headline, New York Times, Feb.�12

Quango Unchained "Independent Scotland Would Need to Quadruple Quangos"--headline, Scotsman, Feb.�11

Life Imitates the Onion

• "Beloved Minister Dies Just as He Lived--of a Heart Attack"--headline, Onion, Feb.�5, 1997
• "Heart Attack Grill Spokesman Dies of Apparent Heart Attack"--headline, Yahoo! News, Feb.�12, 2013

So Much for the War on Drugs "Crack and Joint Maintenance to Begin Today"--headline, Salina (Kan.) Journal, Feb.�12

The Place to Go for a Fake ID "University of Colorado-Denver Celebrates 40 Years of Forging Identity"--headline, Denver Post, Feb.�12

He Never Got to Phoenix "Coroner: Neither Fight nor Hypothermia Killed Frozen Glen Campbell Man"--headline, Pittsburgh Post-Gazette, Feb.�12

To Serve Mensch "Recession Bites as Jewish Educators Downsized"--headline, Forward.com, Feb.�11

Questions Nobody Is Asking "Is the NBA Becoming Gay Friendly?"--headline, Salon.com, Feb.�12

Answers to Questions Nobody Is Asking

• "Why Obama Should Ignore the Deficit in his SOTU"--headline, Washington Post website, Feb.�11
• "Why Microscope Slides Should Hang in the Louvre"--headline, Gizmodo.com, Feb.�11

Look Out Below!

• "Teen Births Plummet to Record Low"--headline, Today.com, Feb.�10
• "Wrestling Dropped From Olympics"--headline, WSJ.com, Feb.�12

It's Always in the Last Place You Look "Why Even Radiologists Can Miss a Gorilla Hiding In Plain Sight"--headline, NPR.org, Feb.�11

News of the Tautological

• "Rising Premiums to Blame for Insurance Cost Jumps"--headline, BenefitsPro.com, Feb.�8
• "Mice are poor stand-ins for people in experiments on some types of inflammation, a new study concludes. But some scientists say that critique discounts the value of mouse studies, many of which simply couldn't be done without the animals."--ScienceNews.com, Feb.�11

News You Can Use "Editorial: A Sensible Approach to Driving While Stoned"--headline, Seattle Times, Feb.�9

Bottom Story of the Day "Alec Baldwin, Morgan Freeman press Obama to fight climate change"--headline, TheHill.com, Feb.�11

Potshots From Boston The Boston Globe's James Carroll, one of America's most insufferably pompous columnists, decides to speak ill of the dead:

As Chris Kyle, author of the book "American Sniper," was laid to rest last week, the sad glow of a lost hero's aura surrounded his passing. In light of his generous effort to help a deranged fellow veteran who is now accused of murdering him, the burial honors seemed especially fitting. And yet the obituaries and remembrances were universally striking for the way they avoided what had made him famous. As a Navy SEAL, Kyle had been a professional killer, described in the subtitle of his autobiography as the "most lethal sniper in U.S. military history."In four combat deployments to Iraq, Kyle killed a confirmed 160 people; by his reckoning, there were nearly 100 more. In sniper fashion, he shot them from secure positions across various distances; he killed one of his victims, he said, from more than a mile away.

Kyle's position probably wasn't as secure as Carroll's, on a chair somewhere in Boston.

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(Carol Muller helps compile Best of the Web Today. Thanks to Eric Jensen, Irene DeBlasio, Chris Papouras, Grant Slade, Aaron Davidson, Greg Masone, Brian Warner, Michele Schiesser, Aaron Thompson, Tom Dziubek, Miguel Rakiewicz, Bruce Goldman, Ethel Fenig, John Williamson, Mark Gray, John Sanders, Jeryl Bier, James Schnabel, Fred Thorne, Kevin Stover, Tom Knight, Eugene Zora, Ray Hendel, Edward Himmelfarb, Gregg Geil, Zack Russ, Keith Kemper, William Thode, Hillel Markowitz, Charles Gregory, Bernard Levine and Bill Kelly. If you have a tip, write us at opinionjournal@wsj.com, and please include the URL.)

Top Stocks To Buy For 2/14/2013-4

The Coca-Cola Company NYSE:KO increased 1.31%, closed at $64.74 and its overall trading volume was 13.06 million shares during the last session. The trailing twelve month return on investment remained 21.94% while its earning per share reached $3.25.

The Procter & Gamble Company NYSE:PG gained 0.14%, closed at $63.64 and its overall trading volume was 11.07 million shares during the last session. The trailing twelve month return on investment remained 10.23% while its earning per share reached $3.57.

Philip Morris International Inc. NYSE:PM advanced 0.03%, closed at $59.41 and its overall trading volume was 6.65 million shares during the last session. The trailing twelve month return on investment remained 32.27% while its earning per share reached $3.76.

Kellogg Company NYSE:K surged 0.08%, closed at $51.06 and its overall trading volume was 2.75 million shares during the last session. The trailing twelve month return on investment remained 14.72% while its earning per share reached $3.23.

Colgate-Palmolive Company NYSE:CL increased 0.26%, closed at $80.99 and its overall trading volume was 2.71 million shares during the last session. The trailing twelve month return on investment remained 30.19% while its earning per share reached $4.28.

Top Stocks For 2/14/2013-1

Reported by: Eric CRWE Newswire Middle East correspondent

The Dow Jones Industrial Average dropped 74.25 points or 0.7 percent to close at 9,985.81 for the day. The Dow closed below its psychological barrier of 10,000 for the first time since July 6th, 2010.

Standard & Poor also declined 0.8 percent to 1,047.22 and NASDAQ also fell of 1.1 percent to close at 2,115.69.

Total traded volume stood at 1 billion shares and bearish sentiments were seen in the New York Stock Exchange as every two stocks against one witnessed correction in today’s trading session.

Though there was positive news of a fall in jobless benefit claims last week, however the indicator for jobless claims consistently had risen for three weeks prior and the market could not perform as traders remained uncertain about the US economic recovery.

HEICO Corporation (NYSE:HEI) was the highest gainer in the market reporting an increase of 15.26 percent to close at $41.76 with traded volume of 418,700 shares.

Guess Inc. (NYSE:GES)was among the major losers dropping 10.7 percent to close at $34.14 with traded volume of 11.42 million shares.

Citigroup Inc. (NYSE:C) remained the most active stock on NYSE as usual followed by SPDR S&P 500 ETF (NYSE:SPY) as both reported a fall of 0.54 percent and 0.67 percent with traded volumes of 333.45 million and 222.63 million shares respectively.

 

The Views and Opinions Expressed by the author are his or her opinions only and do not necessarily reflect those of this Web-Site or its agents, affiliates, officers, directors, staff, or contractors. The author at the time of this article did not own any shares or receive any consideration financial or otherwise from any company or person mentioned or referred to in the article.

THIS IS NOT A RECOMMENDATION TO BUY OR SELL ANY SECURITY!

Threats to Company Earnings Cause the Dow to Drop

While it may still be too early to tell, predictions that the markets would collapse after last night's State of the Union address seem to be dead wrong. For the most part, investors are taking those comments made by the President that would directly affect the markets in stride. As of 12:50 p.m. EST. the Dow Jones Industrial Average (DJINDICES: ^DJI  ) is down 40 points, or 0.37%. The other major indexes are relatively flat, with the S&P 500 (SNPINDEX: ^GSPC  ) up less than a point and the NASDAQ up 0.2%.

So who's down and why?
Last night, in his State of the Union address,�President Obama called for the minimum wage throughout the U.S. to be increased. If this were to happen, the fast-food industry, which employs masses of minimum-wage workers, would take a big. The industry is already dealing with higher food costs, so an increase in labor could really hurt margins and overall profits. Shares of McDonald's (NYSE: MCD  ) are down 1.3% on the news.

This morning the Center for Science in the Public Interest filed a 54-page petition with the Food and Drug Administration as part of a campaign to lower the obesity rate in America. The group is asking the government to regulate the amount of sugar in different foods and drinks -- particularly soft drinks. The group claims that if the amount of sugar in these beverages were reduced, it would be a great step forward in fighting the nation's weight problem and other costly illnesses such as diabetes and heart disease. Shares of Coca-Cola (NYSE: KO  ) are down 1% today.

The earnings estimate cut came from Merck (NYSE: MRK  ) . The company announced this morning that it is reducing its earning per share estimate for the first quarter by $0.05 because of a devaluation of Venezuela's currency. The company has now forecast an earnings range of $0.76 to $0.78 per share, while analysts had previously expected $0.86 per share. Companies often take hits on profits because of currency exchange rates, so while this seems like a large projected loss, investors should not panic at this time.�

More Foolish insight
Are you at ease...or nervous? It's been a great five-year run for investors, with the Dow and S&P at or near all-time highs. Yet fears abound. When will the next downturn hit? Will political gridlock lead to portfolio-killing inflation? To learn how to protect your portfolio, click here for free guidance from the Motley Fool Pro Academy!

Why PROS Holdings Shares Popped

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 PROS Holdings (NYSE: PRO  ) have popped today by as much as 24% after the company reported better-than-expected earnings.

So what: Revenue in the fourth quarter added up to $32.7 million, which topped the high end of guidance along with the consensus estimate of $31.7 million. The same can be said about the bottom-line result, with non-GAAP earnings per share of $0.11 beating the $0.10 per share forecast.

Now what: CEO Andres Reiner said the company exceeded its internal expectations and hit record revenues thanks to a surge in new customer signings in its business-to-business industries. The company grew its employee base by 31% to roughly 700 people during the year to accommodate future growth. First quarter guidance calls for revenue of $32.7 million to $33.3 million. On top of that, Craig-Hallum upgraded its rating on the stock from hold to buy and increased its price target from $17.50 to $27 following the solid quarter.

Interested in more info on PROS Holdings? Add it to your watchlist by clicking here.

2013 and beyond
The Motley Fool's chief investment officer has selected his No. 1 stock for the next year. Find out which stock it is in our brand-new free report: "The Motley Fool's Top Stock for 2013." I invite you to take a copy, free for a limited time. Just click here to access the report and find out the name of this under-the-radar company.

�

�

Better Buy in 2013: 3D Systems or Stratasys?

The declining cost of 3-D printers has led to enthusiastic and widespread adoption among the medical, aerospace, automotive parts, jewelry, and even apparel industries, to name just a few. The two largest players manufacturing made-to-order objects are 3D Systems (NYSE: DDD  ) and Stratasys� (NASDAQ: SSYS  ) .

The recent surge of enthusiasm for accretive printing from the fast-rising proactive consumer, or "prosumer," market segment has resulted in impressive gains for both companies. Stratasys increased shareholder value by 131.6% last year, while 3D Systems has seen its market cap grow by a staggering 700% over the past three years.

While 3-D printing is one of the most exciting disruptive technologies to arrive on the scene in the past decade, it's important for investors to separate the fate of Stratasys or 3D Systems as individual companies from the 3-D industry itself. For starters, the companies are taking two very different approaches to top-line growth.

The market has a very low barrier to entry. Made-to-order mail-order communities such as Shapeways have thrived, locking in an impressive 66.6% increase in consumer orders from December 2011 to January 2012. Crowdsourcing websites such as Kickstarter have also accelerated the commercial development of 3-D start-ups. Even Staples now offers its customers 3-D printing services on Mcor's IRIS 3-D printer.�

So even if 3-D printing is the future, it remains to be seen if Stratasys or 3D Systems will be the companies to shape that future. A single technological breakthrough may translate into an enduring competitive advantage and market dominance.�

Stratasys
Stratasys engages in the manufacture, development, marketing and servicing of rapid prototypin devices, including 3-D printers. Stratasys' emphasis in the 3-D market is primarily on its industrial customers. On April 16, 2012, Stratasys announced that it intended to merge with Objet, a leading manufacturer of 3-D printers based in Rehovot, Israel, in a merger that has made Stratasys the single-largest player in the 3-D industry. Below is a table summarizing both the operating and tax synergies resulting from the merger.�

Company	2011 Revenue (Millions)	CAGR (2009-2011)	2011 Net Income (Millions)	Ownership	Operating and Tax Synergies	Long-Term Operating Model (Stratasys + Objet)
Stratasys	$156	98%	$22	55%	$7 million-$8 million of annual net cost synergies $3 million-$4 million of annual tax savings	Revenue growth: 20%+
						Operating margin: 20%-25% of sales
						Effective tax rate: 15%-20%
Objet	$121.1	34%	$14.7	45%		Net income margin: 16%-21% of sales

Source: Stratasys IR.

Stratasys relies on its numerous value-added resellers, distributors, and a large commercial and industrial client base to drive profits. The company's range of 120 3-D printing materials is the widest in the industry and includes more than 100 proprietary inkjet-based photopolymer materials and 10 proprietary FDM-based thermoplastic materials. Stratasys' cheapest model is the $9,900 Mojo 3-D Printer, developed for the rapid industrial prototyping market.

3D Systems
On the other end of the spectrum is 3D Systems. The company's top-line growth relies on a mix of mid- to high-end corporate customers in the medical and aerospace industry, and a corresponding expansion of the consumer print-on-demand space.�The Cubify 3-D printing system is aimed directly at the mainstream DIY market, with an introductory price of only $1,299. 3D Systems offsets this lower entry price by raising the price of its proprietary ABS cartridges. 3D's proprietary ABS CubeX cartridges are priced at $100 each, roughly twice the price of MakerBot's spools. The sale of these materials currently accounts for 40% of 3D Systems' revenue and is currently one of 3D Systems' fastest-growing segments.

Source: 3D Systems Investor Relations.

However, this vertical integration strategy is already beginning to experience some pushback from price-conscious DIY home hobbyists. The premium for 3D Systems' ABS cartridges essentially subsidizes MakerBot, while encouraging the use of pirated materials and hardware hacks. If the goal is to expand consumer adoption, 3D Systems might be better served by upping its price on its printers and lowering the price on its feedstock.

3D Systems also has drawn analysts' fire for pursuing a growth-through-acquisition strategy. In the opinion of this Fool, top-line growth through mergers and acquisitions is what you'd expect from a market leader struggling to erect a moat in a new industry. Microsoft made 30 acquisitions between 1994 and 1998. Since 1998, eBay had acquired 38 different companies in 1999 alone.

If real estate is about location, location, location, then technology is about patents, patents, patents. Cheap competition means cheap patents, many of which will form the basis for later derivative technologies and, hence, lucrative royalty payments down the line. The company is already making its application programming interface, or API, available to developers to create a consumer app ecosystem grounded in its technology.�

Conclusion
The question of which 3-D printing company is right for you depends on how much risk that you, as an investor, are comfortable with. Sticking strictly to the commercial and industrial engineering and design market makes Stratasys the more conservative play. Should the prices of 3-D printers continue to fall, 3D Systems is ideally placed to exploit the DIY consumer market. As always, investors are advised to do their own due�diligence before making a decision.

3D Systems is at the leading edge of a disruptive technological revolution, with the broadest portfolio of 3-D printers in the industry. However, despite years of earnings growth, 3D Systems' share price has risen even faster, and today the company sports a dizzying valuation. To help investors decide whether the future of additive manufacturing is bright enough to justify the lofty price tag on the company's shares, The Motley Fool has compiled a premium research report on whether 3D Systems is a buy right now. In our report, we take a close look at 3D Systems' opportunities, risks, and critical factors for growth. You'll also find reasons to buy or sell, and receive a full year of analyst updates with the report. To start reading, simply click here now for instant access.

Reynolds American Beats on EPS But GAAP Results Lag

Reynolds American (NYSE: RAI  ) reported earnings on Feb. 12. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Reynolds American met expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue was unchanged and GAAP earnings per share dropped significantly.

Margins shrank across the board.

Revenue details
Reynolds American reported revenue of $2.08 billion. The seven analysts polled by S&P Capital IQ expected revenue of $2.06 billion on the same basis. GAAP reported sales were the same as the prior-year quarter's.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.76. The 12 earnings estimates compiled by S&P Capital IQ predicted $0.73 per share. GAAP EPS of $0.25 for Q4 were 62% lower than the prior-year quarter's $0.65 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 45.5%, 460 basis points worse than the prior-year quarter. Operating margin was 13.9%, 2,100 basis points worse than the prior-year quarter. Net margin was 6.7%, 1,160 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $1.96 billion. On the bottom line, the average EPS estimate is $0.67.

Next year's average estimate for revenue is $8.41 billion. The average EPS estimate is $3.12.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 595 members out of 644 rating the stock outperform, and 49 members rating it underperform. Among 210 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 200 give Reynolds American a green thumbs-up, and 10 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Reynolds American is hold, with an average price target of $44.55.

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• Add Reynolds American to My Watchlist.

Hercules Offshore Beats on Both Top and Bottom Lines

Hercules Offshore (Nasdaq: HERO  ) reported earnings on Feb. 12. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Hercules Offshore beat expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share grew. The profit was a surprise, as analysts had predicted a loss.

Margins grew across the board.

Revenue details
Hercules Offshore notched revenue of $202.6 million. The 12 analysts polled by S&P Capital IQ looked for revenue of $189.5 million on the same basis. GAAP reported sales were 24% higher than the prior-year quarter's $162.8 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.03. The 20 earnings estimates compiled by S&P Capital IQ predicted -$0.06 per share. GAAP EPS were $0.03 for Q4 versus -$0.16 per share for the prior-year quarter.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 40.7%, 970 basis points better than the prior-year quarter. Operating margin was 10.6%, 1,680 basis points better than the prior-year quarter. Net margin was 2.1%, 1,530 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $210.0 million. On the bottom line, the average EPS estimate is $0.03.

Next year's average estimate for revenue is $911.9 million. The average EPS estimate is $0.31.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 1,550 members out of 1,614 rating the stock outperform, and 64 members rating it underperform. Among 392 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 381 give Hercules Offshore a green thumbs-up, and 11 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Hercules Offshore is outperform, with an average price target of $6.53.

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Cha-Ching! Restaurants Cash In on the Calorie-Conscious

Bigger isn't better when talking about our waistlines. But it is when examining restaurant's same-store sales figures. A recent study prescribes a simple plan for eateries' survival in this cutthroat industry: Restaurants must pay attention to the pulse of their consumers.

Study findings
A recent Hudson Institute study�(link opens PDF file)�found that restaurants offering more low-calorie menu options enjoyed higher foot traffic and sales. The study -- which analyzed 21�restaurant chains including McDonald's (NYSE: MCD  ) , Panera Bread (NASDAQ: PNRA  ) , and Denny's (NASDAQ: DENN  ) -- measured the amount of "low-cal" offerings against the restaurants' foot traffic and same-store sales from 2006 to 2011. Low-calorie offerings were cited as entrees containing 500 or fewer calories and beverages with fewer than 50 calories per eight-ounce serving.

Remarkably, restaurants that increased their lower-calorie offerings enjoyed a nearly 11% increase in foot traffic and a 5.5% surge in same-store sales between 2006 and 2011. Meanwhile, venues that did not increase their low-cal options -- or even decreased them -- saw traffic drop nearly 15% and same-store sales decline 5.5% during the same time period.

Greatest gainers
Chain restaurants with 20 or more locations must list calorie information for standard menu items. Both McDonald's and Panera Bread started posting this information on menu boards across the U.S. ahead of the deadline for doing so. According to The Wall Street Journal, after Panera started displaying the calorie information a few years ago, it noted that 20% of its consumers started ordering lower-calorie menu items. Panera's same-store sales soared more than 5% in fourth-quarter 2012.

A fast-casual restaurant known for its focus on food quality, Chipotle Mexican Grill (NYSE: CMG  ) also recently announced a surge in same-store sales. Even though Chipotle's sales have declined while its costs have increased in 2012, the Mexican restaurant reported 3.8% sales growth during the same period.

Seemingly seeing the writing on the wall, some not-traditionally-thought-of-as-healthy restaurants are carving out special sections of their menus to highlight healthier, lower-calorie options. Denny's "Fit Fare" designation displays number of calories and grams of protein, fat, and fiber for some of its entrees. Not surprisingly, the number of healthy options at Denny's still has a long way to go. Only a slice of its entrees boast the "Fit Fare" label. But the home of the Grand Slam recently posted its second consecutive year of positive same-store sales. Perhaps its efforts are starting to pay off.

Several years ago, McDonald's shifted its focus from growing its number of restaurants to driving sales at existing stores. It did so by launching premium products and offering healthier options like its "Favorites Under 400 Calories" menu. Up until very recently, this strategy has paid off. Sales and earnings accelerated from 2005 to 2011. However, just last week, the Golden Arches posted a 1.9% decline in same-store sales worldwide.

Biggest loser
Unquestionably, food quality greatly impacts sales. Look no further than Yum! Brands' (NYSE: YUM  ) recent chicken snafu in China for an example of this. The company's�"adverse publicity from the poultry supply situation" �made for a difficult quarter. Same-store sales declined 6% in China. Lower sales in the Asian nation hurt Yum!'s overall fourth-quarter earnings, and the company lowered guidance for 2013.

After Yum! had grown impressively in the years preceding the chicken crisis, maybe this will serve as a wake-up call and the company will make a change for the better. One positive note for Yum! Brands is that a board member scooped up 35,000 shares of the company after it announced its disappointing report.

Foolish bottom line
Clearly, the writing is on the wall. Lower-calorie menu items are driving restaurant growth. And restaurants that cut corners and don't offer high-quality, nutritious options will be punished. More and more, consumers are voting with their wallets. Eateries that offer a greater number of these options are not only doing what's right for consumers' bottoms, but also enjoying top-line growth as a result.

I like McDonald's for its dividend, but if I had to pick one of these stocks right now, I'd go with Chipotle. The company has made its name (and a 206% return for shareholders in three years!) by focusing on the quality of its food. This focus on quality coupled with the company's long-term international growth prospects appears extremely enticing.

Learn more about Chipotle
Chipotle's stock has been on an absolute tear since the company went public in 2006. Unfortunately, 2012 hasn�t been kind to its stock, as investors question whether its growth has come to an end. Fool analyst Jason Moser�s new premium research report analyzes the burrito maker�s situation and answers the question investors are asking: Can Chipotle still grow? If you own or are considering owning shares in Chipotle, you�ll want to click here now and get started!�

Australia’s Housing Recovery Stalled

End-of-year tallies from the Australian Bureau of Statistics shows that 2012 ended with a whimper instead of a bang as new-home lending fell 0.5% for the quarter despite state-specific gains. Housing Industry Association specialists are calling it a slight improvement over 2011 and data for 2013 show signs of a strong start. Home values are up across the country and in every capital city save for Melbourne from lows seen in May 2012, but still remain than the short-lived peak witnessed in 2010. It has been a buyer’s market for some time in Australia, but experts believe more balance may return this year. For more on this continue reading the following article from Property Wire.

New home lending remained subdued at the end of 2012 with loans for the construction and purchase of new properties increasing by 1.4% but down 0.5% on a quarterly basis.

The figures from the Australian Bureau of Statistics show that for the December quarter of 2012 the total number of seasonally adjusted loans varied considerably from state to state.

Loans increased by 12% in New South Wales, by 6.4% in Western Australia and by 2.1% in Queensland. They fell by 13% in Victoria, by 8.8% in Tasmania and by 1% in South Australia.

The figures also show that the number of loans was up for new dwellings, down for construction, and basically flat for existing dwellings.
 
‘Overall, 2012 can be characterised as year where new home lending just managed to climb out of the lows reached in 2011, with lending for construction and purchase of new homes rising by 8% said Housing Industry Association economist Diwa Hopkins.

She said it was encouraging that the New South Wales, Queensland and Western Australia finished off 2012 with positive results as these states will be crucial to an aggregate recovery in new home building.

‘It remains the case that new home lending is among a suite of leading indicators which have yet to clearly signal a broad and sustainable new home building recovery of the scale commensurate with what Australia’s economy and population requires,’ she added.

Meanwhile, the latest index from RP Data shows that home values across Australia’s capital cities were up 1.2% in January, taking the annual movement in dwelling values back into the black with a 1.8% increase over the past 12 months and negating the 1.2% drop in values recorded over the final quarter of 2012.

Since bottoming out in May 2012, dwelling values across the combined capital cities have recovered 3.1% every capital city, apart from Melbourne which is down 0.4%, has recorded an increase in dwelling values over the past year.

The gains in January were mostly focussed within the Brisbane, Sydney and Perth markets where values were up 2%, 1.8% and 1.7% respectively. The Melbourne and Adelaide housing markets remained relatively subdued with dwelling values rising by 0.2% and 0.4% respectively.

According to RP Data’s research director, Tim Lawless, housing market conditions have started the year on a strong footing. ‘These strong January results are likely to have seen some upwards seasonal bias, however the housing market has been on a clear recovery trend since June last year. Capital gains aren't likely to remain this high over the coming months, however we are likely to see the recovery trend continue through 2013,’ he explained.

 

But he pointed out that despite the improving market conditions in January, dwelling values across the combined capital cities remain 4.6% below their 2010 peak.

‘The latest housing market data adds weight to the argument that interest rates may be at the bottom of the cycle. The Reserve Bank will be watching the performance of the housing market closely, and the positive trend in housing values will dampen calls for further interest rate cuts,’ Lawless added.

Additional data is also pointing towards an improvement in the Australia housing market. The average number of days it takes to sell a property was steadily decreasing prior to the seasonal slowdown in December/January, and the rate of vendor discounting was also on a clear trend of improvement.

According to Mr Lawless, these metrics are a sign that vendors are gradually regaining some leverage in the market. ‘The typical capital city house took 55 days to sell in December last year, a vast improvement from the recent high of 76 days recorded in February last year. Additionally, vendors are now discounting their initial asking prices by an average of 6.6% compared with 7.3% a year ago,’ he pointed out.

‘With stock levels remaining high, it is likely to remain a buyers’ market for some time, however I think we are now seeing some balance return to the negotiation table. Buyers are losing some of their negotiation power and homes are selling faster,’ he added.

Opinion: Best of the Web Today: Pravda on the Hudson

The New York Times's Jackie Calmes bravely speaks truth to power:

Inside the White House and out, advisers and associates have noted subtle but palpable changes in [President] Obama since his re-election. "He even carries himself a little bit differently," said one confidant who, like others, asked not to be identified discussing the president. He is relaxed, more voluble and even more confident than usual, these people say, freer to drop profanities or dismiss others' ideas--enough that even some supporters fear the potential for hubris.�.�.�.As the president prepares to outline his second-term agenda, it is clear from these personal accounts as well as his public acts, like his bold Inaugural Address, that he has shown an assertiveness, self-possession, even cockiness that contrasts with the caution, compromise and reserve that he showed for much of his first term.

As a formal matter, this article is "balanced": Calmes allows that, however awesomely impressive the president may be, future political successes are not assured (although "so far Mr. Obama has carried the day"). If you read far enough into the piece--though why you'd want to is anyone's guess--you'll even get to the obligatory quotes from Republicans.

Still the overall tone, exemplified by the quoted passage, which consists of the second and fourth paragraphs, is of a paean to the great leader. It's almost like reading official "news" from the (North) Korean Central News Agency or (for you old-timers) the old Soviet-era Pravda.

Pope Benedict XVI announced yesterday that he'll resign the papacy at the end of the month, and the Times's story looking ahead to the choice of a successor is weird in a different way. Reporters Rachel Donadio and Elisabetta Povoledo make the following assertion:

The resignation sets up a struggle between the staunchest conservatives, in Benedict's mold, who advocate a smaller church of more fervent believers, and those who believe that the church can broaden its appeal in small but significant ways, like allowing divorced Catholics who remarry without an annulment to receive communion or loosening restrictions on condom use in an effort to prevent AIDS. There are no plausible candidates who would move on issues like ending celibacy for priests, or the ordination of women.

There's no reporting to back up the prediction of a "struggle" (or a "battle," as the story's lead paragraph has it) between "conservatives" and--well, actually, the reporters don't give us a noun to describe the conservatives' putative opponents, so let's just call them people whose views are more in line with those of the Times's editorial page.

The closest we get to an elaboration on the claim is a reference to one possible contender, Canadian Cardinal Marc Ouelett, whom the reporters describe as "a dogmatic theologian." Imagine that! According to Donadio and Povoledo, "critics in his native Quebec said that he was out of step with the province's more progressive bishops, but that is not necessarily a drawback in today's church."

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Obama and Benedict in 2009

Left out are who these critics are, why the other bishops are "more progressive," and how he's "out of step." About the only thing we know about his critics is where they are, although given that he's from Quebec and was archbishop of Quebec for several years, it's not surprising that his critics would be in Quebec.

Despite being based in Rome, the reporters don't seem to have a deep familiarity with the Catholic Church. They even quote a fellow journalist, from the Kansas City-based National Catholic Reporter, as an expert. What's really striking about the Times story, though, is its ideological perspective--one that views the Catholic Church through the distorting lens of contemporary American liberalism as that weird religion that discriminates against women and has some sort of hang-up about condoms. Again, it reminds us of the way totalitarian propaganda outfits "report" on enemy states.

If you think "enemy states" is overwrought, check out the Times op-ed page. In a piece titled "Farewell to an Uninspiring Pope," playwright John Patrick Shanley rants against the church:

Priests cannot marry. Why? I will tell you why. Priests cannot marry because they would have to marry women. Women cannot be priests.Why? Women cannot become priests because of a bunch of old men. These old men justify their beliefs with a brace of ridiculous arguments that Jesus would have overturned in a minute. .�.�. I have little reason to hope that the Church of Rome will suddenly realize that without women, the Catholic Church is doomed, and should be doomed.

Wait, hasn't he heard of nuns? Why yes he has. He continues: "I think of those good nuns who educated me, of their lifelong devotion and sacrifice. They have been treated like cattle by a crowd of domineering fools."

To be sure, this is an opinion piece, not a news story. Even the Times editorialists, although they may share Shanley's views, would never express them anywhere near as vividly. Still, it's hard to imagine the Times op-ed page publishing such a rant about, say, Islam--or, for that matter, about President Obama's leadership. And while the Shanley piece may strike some readers as edgy and adventuresome, our impression of the Times is colored more by Calmes's feather-soft coverage of the most powerful man in the world.

My Pet Conservative The University of Colorado's Boulder campus is trying a bold experiment, the local paper, the Daily Camera, reports. It's going to hire a conservative:

CU originally unveiled grand plans in 2007 to establish a visiting chair in conservative thought and policy, which would have required $7 million to $9 million to fund. But school officials have said the sluggish economy caused them to scale back plans and instead run a pilot program to bring visiting scholars to Boulder.CU has raised $1 million in donations for its visiting scholar in conservative thought and policy, a position that is funded for at least three years.As part of the selection process, each finalist will visit the campus for a day and meet privately with the search committee, chancellor, provost and dean of the College of Arts and Sciences. Each will also teach a class.Since last summer, an advisory committee made up of faculty and community members has been searching for candidates. The committee has sought a "highly visible" scholar who is "deeply engaged in either the analytical scholarship or practice of conservative thinking and policymaking or both."

The three finalists, Steven Hayward, Ron Haskins and Linda Chavez, all sound worthy, but the whole enterprise is an excellent example of the exception proving the rule. Such brazen tokenism wouldn't be necessary if CU--and higher education in general--weren't such a leftist monoculture.

Meanwhile, here's the latest whopper from former Enron adviser Paul Krugman:

Many conservatives, including old-line relatively moderate conservatives, were outraged by the political thesis of my book The Conscience of a Liberal (first published before the 2008 election)--which was that extreme movement conservatives took over the GOP a long time ago, were able to win elections by exploiting white resentment, but were on the verge of losing their grip thanks to demographic change.But that's pretty much exactly what Sam Tanenhaus, the Times book review editor and a long-time conservative, is now saying.

We know Tanenhaus, and he's no conservative. Much of his criticism of conservatism, including his New Republic piece to which Krugman alludes, is wrongheaded in our view. So why would Krugman mistake him for a conservative? Because he is sometimes respectful of conservative thought. He published a well-regarded biography of Whittaker Chambers and is supposedly writing an authorized biography of William F. Buckley. In contrast, for Krugman conservatives are a hate object and nothing more.

Gays Without Irony London's Guardian reports on the latest kerfuffle over same-sex marriage:

Comic giant DC has commissioned Orson Scott Card, author of the award-winning and best-selling Ender's Game sci-fi series, to write for DC's Adventures of Superman series. The digital comic is set to be published in April.The news has sparked a furious backlash from Card's critics. Card is a long-time critic of homosexuality and has called gay marriage "the end of democracy in America." In 2009 he became a board member of the National Organization for Marriage, a group that campaigns against same-sex marriage."Superman stands for truth, justice and the American way. Orson Scott Card does not stand for any idea of truth, justice or the American way that I can subscribe to," said Jono Jarrett of Geeks Out, a gay fan group. "It's a deeply disappointing and frankly weird choice."

Same-sex-marriage advocates would have more credibility in objecting to Card's warning about "the end of democracy in America" if they weren't trying to get him fired simply for expressing his opinion.

Other Than That, the Story Was Accurate

• "CORRECTION: An earlier version of this post incorrectly reported that Sarah Palin had signed on as a contributor to the Al Jazeera America news network. The blogger cited a report on the Daily Currant Web site as the basis for that information without realizing that the piece was satirical."--Washington Post website, Feb.�12
• "This article has been retracted at the request of the Editor-in-Chief. It is with great regret that readers are notified of the retraction of 3 Experimental and Clinical Transplantation papers from the laboratory of Dr. Maroun M. Abou-Jaoude, of the Department of Surgery, Sacr�-Coeur Hospital, Baabda-Hazmieh, Lebanon. The same retraction notice is being applied to 3 papers. The journal of Experimental and Clinical Transplantation was notified of several cases of ethical misconduct by Dr. Abou-Jaoude with regard to the use of unrelated living donors in his clinical practice, who constitute a large proportion of the patient population examined in the 3 articles mentioned. This is in direct violation of the Declaration of Istanbul on Organ Trafficking and Transplant Tourism endorsed by this Journal and the Middle East Society for Organ Transplantation."--Experimental and Clinical Transplantation, via RetractionWatch.com, Feb.�12

Out on a Limb

• "Krauthammer: 'State of the Union Will Be Extremely Aggressive and Partisan'"--headline, National Review Online, Feb.�12
• "Trump May Have Trouble Collecting on $5 Million Orangutan Bet"--headline, Reuters, Feb.�11

We Blame George W. Bush "Who's to Blame for the New Watered-Down Maker's Mark? Japan, Beam Inc., and Yourself"--headline, TheAtlantic.com, Feb.�11

Mission Accomplished "Obama: Job of Debt Reduction Nearly Done"--headline, Washington Post, Feb.�12

Longest Books Ever Written

• "How Obama Wins the Day and America Gets the Shaft"--headline, NationalJournal.com, Feb.�11
• "The Unscientific Hypocrisy of Paul Krugman"--headline, RealClearScience.com, Feb. 12

Southern Ireland's No Picnic Either

• "Crisis Awaits Kerry in Northern Ireland"--headline, Times Union (Albany, N.Y.), Jan.�30
• "Dublin Rule Like Kings Over Paltry Kerry"--headline, Irish Times, Feb.�11

Check Your Rack, Secretary Kerry "Harry Reid: I Still Have My 'Tree Farm' Hat"--headline, TheWeeklyStandard.com, Feb.�12

'The World According to TARP' "Geithner Plans Book on Battling Financial Crisis"--headline, Denver Post, Feb.�10

With DNC in Mind, City Bans Carrying Urine, Feces "Waste Is Seen in Program to Give Internet Access to Rural U.S."--headline, New York Times, Feb.�12

Quango Unchained "Independent Scotland Would Need to Quadruple Quangos"--headline, Scotsman, Feb.�11

Life Imitates the Onion

• "Beloved Minister Dies Just as He Lived--of a Heart Attack"--headline, Onion, Feb.�5, 1997
• "Heart Attack Grill Spokesman Dies of Apparent Heart Attack"--headline, Yahoo! News, Feb.�12, 2013

So Much for the War on Drugs "Crack and Joint Maintenance to Begin Today"--headline, Salina (Kan.) Journal, Feb.�12

The Place to Go for a Fake ID "University of Colorado-Denver Celebrates 40 Years of Forging Identity"--headline, Denver Post, Feb.�12

He Never Got to Phoenix "Coroner: Neither Fight nor Hypothermia Killed Frozen Glen Campbell Man"--headline, Pittsburgh Post-Gazette, Feb.�12

To Serve Mensch "Recession Bites as Jewish Educators Downsized"--headline, Forward.com, Feb.�11

Questions Nobody Is Asking "Is the NBA Becoming Gay Friendly?"--headline, Salon.com, Feb.�12

Answers to Questions Nobody Is Asking

• "Why Obama Should Ignore the Deficit in his SOTU"--headline, Washington Post website, Feb.�11
• "Why Microscope Slides Should Hang in the Louvre"--headline, Gizmodo.com, Feb.�11

Look Out Below!

• "Teen Births Plummet to Record Low"--headline, Today.com, Feb.�10
• "Wrestling Dropped From Olympics"--headline, WSJ.com, Feb.�12

It's Always in the Last Place You Look "Why Even Radiologists Can Miss a Gorilla Hiding In Plain Sight"--headline, NPR.org, Feb.�11

News of the Tautological

• "Rising Premiums to Blame for Insurance Cost Jumps"--headline, BenefitsPro.com, Feb.�8
• "Mice are poor stand-ins for people in experiments on some types of inflammation, a new study concludes. But some scientists say that critique discounts the value of mouse studies, many of which simply couldn't be done without the animals."--ScienceNews.com, Feb.�11

News You Can Use "Editorial: A Sensible Approach to Driving While Stoned"--headline, Seattle Times, Feb.�9

Bottom Story of the Day "Alec Baldwin, Morgan Freeman press Obama to fight climate change"--headline, TheHill.com, Feb.�11

Potshots From Boston The Boston Globe's James Carroll, one of America's most insufferably pompous columnists, decides to speak ill of the dead:

As Chris Kyle, author of the book "American Sniper," was laid to rest last week, the sad glow of a lost hero's aura surrounded his passing. In light of his generous effort to help a deranged fellow veteran who is now accused of murdering him, the burial honors seemed especially fitting. And yet the obituaries and remembrances were universally striking for the way they avoided what had made him famous. As a Navy SEAL, Kyle had been a professional killer, described in the subtitle of his autobiography as the "most lethal sniper in U.S. military history."In four combat deployments to Iraq, Kyle killed a confirmed 160 people; by his reckoning, there were nearly 100 more. In sniper fashion, he shot them from secure positions across various distances; he killed one of his victims, he said, from more than a mile away.

Kyle's position probably wasn't as secure as Carroll's, on a chair somewhere in Boston.

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(Carol Muller helps compile Best of the Web Today. Thanks to Eric Jensen, Irene DeBlasio, Chris Papouras, Grant Slade, Aaron Davidson, Greg Masone, Brian Warner, Michele Schiesser, Aaron Thompson, Tom Dziubek, Miguel Rakiewicz, Bruce Goldman, Ethel Fenig, John Williamson, Mark Gray, John Sanders, Jeryl Bier, James Schnabel, Fred Thorne, Kevin Stover, Tom Knight, Eugene Zora, Ray Hendel, Edward Himmelfarb, Gregg Geil, Zack Russ, Keith Kemper, William Thode, Hillel Markowitz, Charles Gregory, Bernard Levine and Bill Kelly. If you have a tip, write us at opinionjournal@wsj.com, and please include the URL.)

Can Life Technologies Meet These Numbers?

Life Technologies (Nasdaq: LIFE  ) is expected to report Q4 earnings on Feb. 4. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Life Technologies's revenues will grow 1.8% and EPS will grow 4.7%.

The average estimate for revenue is $987.9 million. On the bottom line, the average EPS estimate is $1.11.

Revenue details
Last quarter, Life Technologies reported revenue of $911.2 million. GAAP reported sales were 1.8% lower than the prior-year quarter's $928.2 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, non-GAAP EPS came in at $0.92. GAAP EPS of $0.37 for Q3 were 29% lower than the prior-year quarter's $0.52 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 65.6%, 40 basis points worse than the prior-year quarter. Operating margin was 20.1%, 110 basis points worse than the prior-year quarter. Net margin was 7.2%, 320 basis points worse than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $3.79 billion. The average EPS estimate is $3.98.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 221 members out of 237 rating the stock outperform, and 16 members rating it underperform. Among 79 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 74 give Life Technologies a green thumbs-up, and five give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Life Technologies is outperform, with an average price target of $52.00.

Looking for alternatives to Life Technologies? It takes more than great companies to build a fortune for the future. Learn the basic financial habits of millionaires next door and get focused stock ideas in our free report, "3 Stocks That Will Help You Retire Rich." Click here for instant access to this free report.

• Add Life Technologies to My Watchlist.

Can These 3 Stocks Be Resurrected?

Lackluster trading was being blamed for the Dow Jones Industrial Average ticking down 21 points yesterday, gripped by ennui over both domestic and international financial woes. Will Europe implode? Will Congress actually perform its duties and come to grips with a budget plan that prevents across-the-board budget cuts?

Weighty questions indeed, but the three companies below had more to worry about than macroeconomic concerns as they confronted defining moments that caused them to lead the way lower. With more than half of all stocks listed on major U.S. exchanges falling yesterday, these three were among the more notable ones leading the charge down.

Company	% Change
Novo Nordisk (NYSE: NVO  )	(14%)
Heckmann (NYSE: HEK  )	(10.3%)
The Active Networks (NYSE: ACTV  )	(7%)

Now don't go running over the cliff with them like a bunch of lemmings: It could just be a temporary situation. Let's first see whether they had good reason to fall as panic-fueled routs can sometimes lead to excellent buying opportunities.

Diabetic shock
That saying "don't count your chickens before they're hatched" applied in spades to Danish drug giant Novo Nordisk yesterday, which was smacked down by the Food and Drug Administration rejecting its new diabetes therapy despite it having gained European approval for the drug and the regulatory agency's own advisory panel recommending it be given the green light.

Particularly since the Fool's Keith Speights warned last year that just such an outcome was possible, investors should have been aware rejection was a distinct possibility. But considering Wall Street analysts were anticipating Tresiba and its related Ryzodeg would bloom into multibillion blockbusters challenging Sanofi's (NYSE: SNY  ) Lantus -- still the top-selling long-lasting insulin -- they could be forgiven for thinking the risk was remote.

Yet the FDA concern regarded potential heart risks associated with taking the drugs as a fatal flaw, though most watchers assumed the agency would approve the treatment but order that concurrent new trials be conducted. The harshness of the FDA's decision, though, is reflected in its unwillingness to even consider Tresiba or Ryzodeg until the drug maker completes those tests, which Novo Nordisk admits will take several years.

That's big news for Sanofi since Lantus sales continue to grow, hitting $6.8 billion in sales in 2012 and jumping 7.8% in the fourth quarter. Sanofi sold almost 6.4 million units, and it owns about 80% of the insulin market, so it's unsurprising that its own shares jumped 3% yesterday. Tresiba was the biggest threat to its dominance because Eli Lilly's new long-acting insulin LY2605541 is still years away from market, but with the huge hurdle the FDA just threw in front of its rival, Sanofi will be able to widen the gap further.

What the heck?!
Wastewater management specialist Heckmann tumbled after getting downgraded by an analyst at Wedbush who believes it won't be able to meet Wall Street's profit projections. The secular decline in natural gas prices has drillers cutting back production, and since Heckmann provides them with water to conduct hydraulic fracturing (as well as treats the wastewater the process produces), the analyst sees its upcoming performance as weak.

While low prices have been the bane of the gas industry for sometime, it has spurred a lot more industries such as utilities to switch over to gas from coal. Last year Heckmann doubled down on the industry's drilling prospects by acquiring Power Fuels, a fluid services specialist focused solely on the Bakken shale, which broadens its presence in the fracking field.

Undoubtedly the pricing situation has an impact on results today, but the long-term outlook for gas remains as robust as ever, and that's the bet Heckmann is making. Downgrades like those yesterday can hurt, but investors may want to thank the analyst later on for giving them a better entry point in what I'm betting will be a big winner down the road.

Declined due to inactivity
There was no company-specific news to account for The Active Network's drop yesterday, but it will be reporting earnings this week -- Valentine's Day, as a matter of fact -- and so far it's not showing investors any love. The stock has lost almost two-thirds of its value over the past year and is down more than 70% from its highs.

Following yesterday's freefall, The Active Network resumed its decline today, down another 3%, perhaps due in part to a Seeking Alpha article that excoriates the business as one facing "structural insolvency" and not worth more than $2 a share. If the analysis is correct, investors may soon find The Active Network to be an inactive stock, but let me know in the comments section below whether you agree with that analysis or why you think it can restore its growth prospects.

Ready for a resurrection?
Over the next two years, Eli Lilly will see nearly $0.40 of every $1.00 in sales exposed to generic competition. How does the company plan to respond to this huge patent cliff? Better yet, what does this mean for investors? In a brand new premium report on Eli Lilly, The Motley Fool's top pharmaceuticals analyst delves into everything investors need to know about the stock today. Simply click here now to claim your copy.