Top Stocks For 2/24/2013-13

HIRU CORPORATION (Other OTC: HIRU.PK) subsidiary Shuangshi AHP Co. dispatched company representatives to evaluate the agricultural developments and increase company sales in the regions of Ganzhou, Yichun and Jian.

Shuangshi’s assistant general manager and sales manager met with several potential customers in the aforementioned regions to discuss the potential of Shuangshi products on the local markets, as the company works on gaining more exposure with Chinese farmers for their vaccination needs.

The representatives also negotiated with two new agricultural clients, each client reporting annual sales of approximately $30 million USD. Following these negotiations, Shuangshi AHP representatives supplied the customers with new HIRU products for testing and evaluation by the clients. Shuangshi AHP anticipates to gain more new clients as the company’s top quality animal vaccination products gain exposure in the market.

In additional news, HIRU is considering a merger with a Canada-based health products company. This company operates a full-service natural health clinic and distributes its signature brand of health products.

The company’s various products promote brain health, pain management and hormone balance, and help combat high blood pressure and high cholesterol. These products come highly regarded by the Chinese market, and have already received positive online testimonials from consumers who say using the products improved their health.

MusclePharm Corporation (OTCBB:MSLP) one of the fastest growing nutritional supplement companies in the United States, is pleased to announced that it has become an official nutritional supplement supplier for Major League�s baseball team; the Cincinnati Reds.

The partnership begins in 2011 and MusclePharm will work closely with the Cincinnati Reds and its Head Strength Coach, Matt Krause.

Matt Krause, Head Strength Coach of the Cincinnati Reds said, �We are proud to team with MusclePharm because its products are convenient, safe, effective and contain no banned substances. As a strength coach, I am always working to ensure our players reach their full potential and proper diet and supplements are an important part of that goal of reaching full potential. Musclepharm provides the proper supplements that are approved by NSF and Major League Baseball testing guidelines which provides me with the confidence I must have in the supplements our players are using.�

Before any Musclepharm products are available for professional sports teams they must be approved by the NSF Certified for Sport� Program. To meet the growing demands of athletes, coaches and all those concerned about banned substances in sports supplements, NSF International developed the NSF Certified for Sport� Program. This testing program minimizes the risk that a dietary supplement or sports nutrition product will contain any substance that is on one of the major sports organizations banned list. It also ensures that certified products contain the identity and quantity of dietary ingredients declared on the product label, but do not contain unacceptable quantities of unwanted contaminants for the recommended serving size.

MusclePharm�s President, Cory Gregory, commented, “We are very excited to become the nutritional supplement supplier for the Cincinnati Reds. We believe this relationship will expand our brand by introducing our nutritional supplements, which are 100% free of any banned substances, to a new consumer group.�

�We started Musclepharm to provide all athletes with the proper supplements that will enable them to reach their full potential with safe and effective supplements. We believe this partnership is only the beginning of opportunities for us to expand our brand into sports outside of our core MMA market.”

Pearson plc (NYSE:PSO) announced that Guests from Que Publishing and Diskeeper Corporation will appear on radio talk show Let�s Talk Computers�. Que Publishing is a company of Pearson Education, the world�s largest education publisher. Diskeeper Corporation is the undisputed leader in performance and reliability technologies. Joe Habraken, author of �Microsoft Office 2010 in Depth,� in the first of a series of interviews on �Getting the Most Out of Microsoft Office 2010,� explores the tips & tricks that give us mastery over this vast suite of programs.

Pearson plc, a media company, engages in education, business information, and consumer publishing businesses worldwide. The company operates in three groups: Pearson Education, Financial Times, and Penguin.

Dana Holding Corporation (NYSE:DAN) announced that Executive Vice President and Chief Financial Officer Jim Yost will participate in the Goldman Sachs Second Annual Global Automotive Conference in London on Thursday, Dec. 9, 2010. Mr. Yost will present for approximately 45 minutes, beginning at 11 a.m. GMT (6 a.m. EST), and discuss Dana�s recent financial performance, as well as current and future plans. Information on accessing a live webcast will be posted to Dana�s Investor website prior to the event. In addition, the audio replay of Mr. Yost�s remarks will be available the next business day via the Dana Investor website.

Dana Holding Corporation engages in the design, manufacture, and supply of products for vehicle manufacturers worldwide. It offers light axles, drive shafts, structural products, sealing products, thermal products, and related service parts for light trucks, sport utility vehicles, crossover utility vehicles, vans, and passenger cars.

Jones Apparel Group, Inc. (NYSE:JNY) recently presented at the J. P. Morgan SMid Cap Conference: �Think Big, Buy Small� on December 3, 2010. The presentation wasl webcast and made available through the Company�s website. The Jones Group Inc. is a leading global designer, marketer and wholesaler of over 35 lifestyle brands with best-in-class product expertise across five divisions: apparel, footwear, jeans wear, jewelry and handbags.

The Jones Group Inc. engages in the design, marketing, and wholesale of apparel, footwear, and accessories in the United States and Canada. Its products include skirts, blouses, pants, jackets, sweaters, jeanswear, suits, dresses, casual tops, outerwear.

PIMCO’s Gross, Roubini Slam Fed Over Possible Bubble

Cover your ears; the ‘pop’ could be loud.

News broke on Thursday that Fed officials downplayed asset bubble concerns in their last meeting, but high-profile watchers aren’t buying it.

In his characteristically blunt (and pessimistic) assessment of the situation, famed NYU economist Nouriel Roubini (right) told The Daily Ticker that “the mother of all bubbles has begun.”

The website noted others, including PIMCO CEO Mohammed El-Erian, “Gloom, Boom and Doom” author Marc Faber and hedge fund manager Doug Kass, have made similar comments in recent days.

In fact, El-Erian’s colleague Bill Gross told CNBC that "I don't think the Fed is vigilant in terms of the negative aspects of zero-bound rates. I don't think they're vigilant in terms of other central banks and their quantitative easing policies. I don't think they're vigilant in terms of asset prices."

"One of the problems that the Fed has had over the past 10 years is that they have not focused on asset prices," Gross (right) emphasized.

The network notes that he argued the Fed’s focus on unemployment and inflation—which he acknowledged has been vigilant—was "almost to the asset price exclusion," causing it to miss the 2008 housing bubble and "the destruction that asset prices can wreak upon an economy, in addition to higher inflation."

St. Louis Fed President James Bullard, who appeared with Gross, naturally took issue with his comments, according to CNBC.

"I think we are [vigilant]," he said. "We take all those aspects into account."

The Fed has better systems in place to track financial markets, Bullard said, adding, "We certainly talk to the other central banks. We are well aware of what they're doing."

Bullard continued, "[The] systems in place on tracking what's going on, making sure that we're at least aware of different aspects of financial markets ... those systems are a lot better than they were five years ago. And we are trying to have better market intelligence."

Gross later told Bloomberg Television that quantitative easing would continue to "at least the end of the year."

Gross said that the Federal Reserve knew that its policy had negatives: "The chairman recognizes that," he said.

He also spoke about returning to the gold standard, which would be "very difficult."

3-D Printers, or: How I Learned to Stop Worrying and Love Volatility

Seems like hardly a week goes by without another dramatic and seemingly random price swing for 3-D printers. The 3-D printing industry has fascinated investors with its ability to instantly manufacture custom-designed objects and has been name-checked frequently by major media outlets, popular television personalities, and the president of the United States. Industry giants 3D Systems (NYSE: DDD  ) and Stratasys (NASDAQ: SSYS  ) have both shot up more than 100% over the past 12 months, as new interest surges in an industry that's actually decades old. What's an investor to make of all this movement?

Author Douglas Adams gave the best advice possible in this situation (and many others): Don't Panic. Short-term thinking is no good for long-term investors like us, so when 3-D printers have wild price swings on no relevant news, we shouldn't assume there's a bursting bubble we need to get away from or a big rally we need to get onboard for. Instead, think about why you're invested in the company in the first place, and whether anything has happened to change that thesis.

Today, the idea that 3-D printing will continue to grow in popularity isn't being challenged, but rather investors are worrying whether the price of 3-D printing stocks has simply risen too high, reflecting irrational exuberance that far outpaces realistic outcomes. With the major 3-D printers trading for dizzying prices around 80 times earnings, it's only realistic to ask if it's even possible for 3-D printers to deliver on expectations. In this case, it's useful to look at how big 3-D printing might actually get, by thinking about the addressable market.

It's difficult to predict what sort of applications 3-D printing will find in a decade or more, so let's look at what 3-D printers are useful for now. Most obviously, 3-D printers are great at turning out little plastic toys and trinkets. I believe there's no long-term business opportunity here. The ability to churn out the low-quality machines that make low-quality plastic novelties has become too commoditized to support solid earnings, especially since nonprofits and academic organizations have taken an interest in promoting the technology.

Where commercial 3-D printers such as 3D Systems, Stratasys, and newly public ExOne (NASDAQ: XONE  ) really shine is in the market for high-value, low-volume items that require exacting manufacture and sophisticated print materials. There are two important markets here: prototypes manufactured for the research and development of new products, and health products created to perfectly fit a given human body, including items such as replacement hips, dental fillings, and hearing aids. So just looking at the applications we know 3-D printing can compete in today, what's the market opportunity look like?

On the life science side, just the market for 3-D-printing-friendly health applications is estimated to be around $40 billion. That dwarfs the current size of the 3-D printing industry, but it looks like chump change compared with 3-D printing's other major opportunity.

In 2013, the world will spend $1.5 trillion on research and development. This matters, because when you're designing products for the real world (that includes everything from airfoils to running-shoe soles), it improves the design process to be able to get a physical version of a design to test out, sort of like an industrial first draft. Designers have three choices when making these prototypes: make them by hand, fire up a full-scale factory to produce only a few items, or 3-D print them. Increasingly, industrial designers are finding that 3-D printing isn't just faster; it's cheaper. As such, I expect 3-D printing to win in the rapid prototyping space.

However, only a portion of this $1.5 trillion expenditure is relevant to rapid prototyping, as many industries have no need for physical models. Excluding industries that don't depend on prototyping, such as information technology, communications, and pharmaceuticals, the "physical things" R&D spend still comes to about $1 trillion.

So how much of these two markets could 3-D printing capture? Nobody can say for sure, but since customized prosthetics are vastly superior to mass-produced prosthetics, I wouldn't think it a stretch to say that, eventually, half of the prosthetic market could go 3-D printing, for $20 billion. For the "physical things" R&D spend, let's be conservative and say that over the next couple of decades, only 1% goes toward 3-D printing of rapid prototypes and customized designs, for another $10 billion. If you think these estimates are wildly optimistic, investing in 3-D printers might not be for you. This isn't a science; it's a way to back into a more specific idea of how large these companies can get.

Going with assumptions, and without expecting any growth in either market and without finding any new uses for 3-D printing, we have a $30 billion-per-year market today. In 2011, 3-D printers brought in only about $1.7 billion. 3D Systems controls about 13.5% of this market and Stratasys controls 16%, with the remainder split between many small providers. If these companies keep their market share as the industry matures over many years, and their valuations eventually fall back to earth and settle at two times sales, combined they could still nearly quadruple from a $5.5 billion market cap to a $20 billion market cap. If you add in the fact that both health care and R&D are growing markets, and the idea that brand-new commercial uses will be found for 3-D printing, there's a lot of unquantifiable potential.

Ultimately, it takes time for good companies to grow into their valuations, and nobody knows how much time. Apple (NASDAQ: AAPL  ) was considered a high-flying expensive growth stock for two decades, but today nobody can argue with the company's cash-generating power, and it looks cheap on its earnings. Investors should accept that 3D Systems and Stratasys will not make enough money to grow into their valuations this year, maybe not even in 10 or 20 years. That doesn't make them a "bubble" any more than Apple was.

Until these companies actually make the money investors feverishly expect, however, their stock prices will be based primarily on emotion. That can be scary, but it can also offer a lot of opportunity. When you have a company with excellent long-term prospects that frequently drops 10% or more for no business reason, prudent investors can buy. You can also sell a portion of your investment every time the stock seems to irrationally pop, locking in some gains. I typically follow this strategy, seeking to rebalance my investments by buying on weakness and selling on strength. On the other hand, some Fools prefer to keep buying their winners, reasoning that a rising stock price is evidence of great execution and a well-managed company will put the new capital to good use.

Whatever your strategy, if you're investing Foolishly, you know that you're focused on long-term results, not daily price fluctuations. Whenever your investment -- whether 3-D printers or anything else -- seems to be acting strangely, just take a minute and think about your investing thesis. If your thesis hasn't changed, your investments shouldn't change. Instead, look at wild random price movements as a chance to benefit from the emotional reactions of others. With a long-term focus, you can learn to love volatility.

To help you 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.

Top Stocks To Buy For 2/19/2013-2

Fair Isaac Corporation (NYSE:FICO) shares were transacted unexpectedly with a volume of 2.33 million shares as compared to its average volume of 0.317 million shares. FICO opened at $26.46 scored +10.93% closed $28.12. Its 52 week price range is $20.16 - $28.58.

FICO has earnings of $62.78 million and made $610.08 million sales for the last 12 months. Its quarter to quarter sales remained 2.93%. The company has 40.06 million of outstanding shares and 39.84 million shares were floated in the market.

FICO has an insider ownership at 0.46% and institutional ownership remained 98.29%. Its return on investment (ROI) for the last 12 month was 5.73% as compare to its return on equity (ROE) of 11.65% for the last 12 months.

The price moved ahead +12.00% from the mean of 20 days, +16.23% from 50 and went up 18.68% from 200 days average price. Company�s performance for the week was 11.81%, +19.61% for month and yearly performance remained 24.15%.

Its price volatility for a month remained 2.79% whereas volatility for a week noted as 3.12% having beta of 1.43. Company�s price to sales ratio for last 12 months was 1.85 while its price to book ratio for the most recent quarter was 2.29 and its earnings before interest, tax, depreciation and amortization (EBITDA) remained 143.12 million for the past twelve months.

1 Way Abbott Labs Can Fix Health Care

The personal and emotional elements of health care have long separated the industry from many of the forces that drive other forms of business. Unfortunately, those same elements have contributed, in part, to the unsustainable path our nation's health-care spending is on. However, in the following video, Brenton Flynn outlines one technology that, if used appropriately, could help patients immensely, while also making our health-care system more cost-efficient.

Want to know more about Abbott Labs?
For some Abbott Labs shareholders, the new year brought with it a new company called AbbVie. Formerly Abbott's branded pharmaceuticals business, shares of the new stock were distributed to investors on Jan. 2. To help investors better understand the situation, the Fool has created a�brand new premium report�on both stocks. Inside, we outline all of the must-know opportunities and risks facing both companies, so make sure to claim this report by�clicking here now.

Solazyme Misses on the Top and Bottom Lines

Solazyme (Nasdaq: SZYM  ) reported earnings on Feb. 20. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Solazyme missed estimates on revenues and missed expectations on earnings per share.

Compared to the prior-year quarter, revenue shrank significantly. Non-GAAP loss per share grew. GAAP loss per share increased.

Margins contracted across the board.

Revenue details
Solazyme tallied revenue of $8.4 million. The 10 analysts polled by S&P Capital IQ foresaw revenue of $8.9 million on the same basis. GAAP reported sales were 43% lower than the prior-year quarter's $14.9 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 -$0.35. The four earnings estimates compiled by S&P Capital IQ predicted -$0.31 per share. Non-GAAP EPS were -$0.35 for Q4 versus -$0.26 per share for the prior-year quarter. GAAP EPS were -$0.40 for Q4 against -$0.26 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 83.3%, 1,110 basis points worse than the prior-year quarter. Operating margin was -296.5%, 19,110 basis points worse than the prior-year quarter. Net margin was -292.1%, 18,750 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $13.1 million. On the bottom line, the average EPS estimate is -$0.30.

Next year's average estimate for revenue is $79.8 million. The average EPS estimate is -$1.15.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 368 members out of 386 rating the stock outperform, and 18 members rating it underperform. Among 85 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 78 give Solazyme 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 Solazyme is outperform, with an average price target of $17.08.

Is Solazyme the right energy stock for you? Read about a handful of timely, profit-producing plays on expensive crude in "3 Stocks for $100 Oil." Click here for instant access to this free report.

• Add Solazyme to My Watchlist.

Will Franklin Covey Blow It Next Quarter?

There's no foolproof way to know the future for Franklin Covey (NYSE: FC  ) or any other company. However, certain clues may help you see potential stumbles before they happen -- and before your stock craters as a result.

A cloudy crystal ball
In this series, we use accounts receivable and days sales outstanding to judge a company's current health and future prospects. It's an important step in separating the pretenders from the market's best stocks. Alone, AR -- the amount of money owed the company -- and DSO -- the number of days' worth of sales owed to the company -- don't tell you much. However, by considering the trends in AR and DSO, you can sometimes get a window onto the future.

Sometimes, problems with AR or DSO simply indicate a change in the business (like an acquisition), or lax collections. However, AR that grows more quickly than revenue, or ballooning DSO, can, at times, suggest a desperate company that's trying to boost sales by giving its customers overly generous payment terms. Alternately, it can indicate that the company sprinted to book a load of sales at the end of the quarter, like used-car dealers on the 29th of the month. (Sometimes, companies do both.)

Why might an upstanding firm like Franklin Covey do this? For the same reason any other company might: to make the numbers. Investors don't like revenue shortfalls, and employees don't like reporting them to their superiors.

Is Franklin Covey sending any potential warning signs? Take a look at the chart below, which plots revenue growth against AR growth, and DSO:

Source: S&P Capital IQ. Data is current as of last fully reported fiscal quarter. FQ = fiscal quarter.

The standard way to calculate DSO uses average accounts receivable. I prefer to look at end-of-quarter receivables, but I've plotted both above.

Watching the trends
When that red line (AR growth) crosses above the green line (revenue growth), I know I need to consult the filings. Similarly, a spike in the blue bars indicates a trend worth worrying about. Franklin Covey's latest average DSO stands at 76.8 days, and the end-of-quarter figure is 74.1 days. Differences in business models can generate variations in DSO, and business needs can require occasional fluctuations, but all things being equal, I like to see this figure stay steady. So, let's get back to our original question: Based on DSO and sales, does Franklin Covey look like it might miss its numbers in the next quarter or two?

The numbers don't paint a clear picture. For the last fully reported fiscal quarter, Franklin Covey's year-over-year revenue grew 11.4%, and its AR grew 19.3%. That looks ok, but end-of-quarter DSO increased 13.2% over the prior-year quarter. It was up 2.3% versus the prior quarter. That demands a good explanation. Still, I'm no fortuneteller, and these are just numbers. Investors putting their money on the line always need to dig into the filings for the root causes and draw their own conclusions.

Looking for alternatives to Franklin Covey? 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 Franklin Covey to My Watchlist.

3 Earnings Reports That Caught My Attention Last Week

As first-quarter earnings hit a midpoint, I can't help but point out that the majority of earnings reports we've covered over the past year have been better than expected. With so many companies reporting during the weeks that comprise earnings season, it's easy for some earnings reports to fall through the cracks.

Each week for the past year, I've taken a look at three companies that could be worth further research after either beating or missing their profit expectations. Today, we'll take a gander at three more companies that reported earnings last week. They may have slid under your radar, but they deserve a look.

Company	Consensus EPS	Reported EPS	Surprise
Alpha Natural Resources (NYSE: ANR  )	($0.55)	($0.19)	65%
Avon Products (NYSE: AVP  )	$0.27	$0.37	37%
Rackspace Hosting (NYSE: RAX  )	$0.22	$0.21	(5%)

Source: Yahoo! Finance.

Alpha Natural Resources
Don't call it a comeback just yet, but coal companies don't appear to be in as bad a shape as was previously thought. Alpha Natural Resources, the largest U.S. producer of metallurgical coal used to strengthen steel, is the perfect example of this trend.

For the quarter, Alpha Natural reported a much smaller adjusted loss of $0.19 due to massive cost-cutting (including job losses totaling 9% of its workforce) as revenue fell by a not-so-pretty 25%. However, between the two forms of coal -- thermal, used by utilities, and metallurgical, used to strengthen steel -- metallurgical seems more likely to rebound the quickest given China's huge infrastructure development plan announced in September and the rapid rebound in the domestic housing market.

One area where Alpha Natural Resources and rival Peabody Energy (NYSE: BTU  ) , which also handily crushed Wall Street's estimates in the fourth quarter, are excelling in is the met-coal export department. According to Peabody, seaborne spot metallurgical prices are up 15%-20% from their lows of third-quarter 2012 and Chinese steel demand rose 9% in the fourth quarter. Both figures signify a strengthening export market to Asia and should be supportive of stable or rising met-coal prices, as well as increasing demand.

Domestically, a ramp-up in homebuilding, evidenced by reduced inventories in the housing market, should be good news for Alpha Natural Resources. Understandably, this won't be a quick turnaround, but it appears to be on the right track.

Avon Products
There's not nearly enough foundation in Avon's product bag that it could use to cover up its lack of actual growth!

On the surface, yes, Avon absolutely crushed Wall Street's expectations by $0.10. It also instilled confidence in investors that it'll focus on its core beauty products business by looking at strategic alternatives for its Silpada jewelry business and removing itself from the South Korean and Vietnam markets by 2015 in order to save $400 million annually.

Besides these key points, it was really more of the same for Avon. Revenue dropped 1% to $2.96 billion as beauty product sales dropped 2% and non-GAAP margins decreased 130 basis points. What I found more disturbing was that the number of active representatives actually rose by 1%, yet, accounting for negative currency translations, sales fell by an aforementioned 1%. Even if you exclude the currency translations, why should I, in my right mind, be excited about 1% growth? Avon turned down a buyout offer from Coty at an extremely hefty premium last year and still boasts $2 billion in net debt, down just $77 million over the previous 12-month period. If you remove the pounds of makeup, this is actually a very ugly investment.

Rackspace
Just last month I warned investors that the valuation on open-cloud specialist Rackspace might be a little aggressive -- it didn't take but six weeks to prove my point.

For the recently ended quarter, Rackspace reported a 25% increase in year-over-year revenue to $353 million as profit grew 19% to $30 million. Unfortunately, the market wasn't in a forgiving mood and the Street had expected Rackspace to report $355.4 million in revenue. Although the miss may seem as trivial as VMware's (NYSE: VMW  ) , which I highlighted two weeks ago, it nonetheless pointed to a fifth straight quarter of declining sales growth.

VMware, which runs private cloud-based enterprise software, and Rackspace, which deploys its own open-cloud software that doesn't tie its enterprise customers to one specific vendor, both noted that their results struggled as they transition to their next-generation software. What this means for investors of both VMware and Rackspace is that they can expect slower growth in the interim as these transitions are made.

For VMware, I saw this as an opportune time to cash in on a company still growing healthfully in the double digits and valued at just 21 times forward earnings and 16 times cash flow. For Rackspace, it looks like another reason to run for the exits. Even after its huge drop, Rackspace is valued at 49 times forward earnings and 22 times cash flow. This also doesn't factor in the potential psychological concerns enterprises may have about an open-cloud platform across multiple vendors. Keep in mind I'm not implying that Rackspace in any way has a security problem, but the perception that one could arise in an open-cloud space is another reason that I'd keep my distance for the time being.

Foolish roundup
Sometimes an earnings beat or miss isn't as cut-and-dried as it appears. I've given my two cents on what's next for each of these companies -- now it's your turn to sound off. Share your thoughts in the comments section below and consider adding these stocks to your free and personalized Watchlist.

• Add Alpha Natural Resources to My Watchlist.
• Add Avon Products to My Watchlist.
• Add Rackspace Hosting to My Watchlist.

Is this the go-to stock in the coal sector?
The coal industry in the United States has been in a state of flux since the arrival of a cheaper alternative for energy production: natural gas. Exports are becoming a much bigger part of the domestic coal landscape, and Peabody Energy has deals in place to get its cheaper coal from the Powder River and Illinois basins to India, China, and the EU. For investors looking to capitalize on a rebound in the U.S. coal market, The Motley Fool has authored a special new premium report detailing exactly why Peabody Energy is perhaps most worthy of your consideration. Don't miss out on this invaluable resource -- simply click here now to claim your copy today.

Apple: Hudson Square Boosts Price Target To Street High $500

You have to hand it to Hudson Square Research analyst Daniel Ernst. He thinks big.

This morning, Ernst raised his price target for Apple (AAPL) to $500, from $300, while repeating his Buy rating. That’s the highest target for the stock among Street analysts tracked by Thomson First Call.

“With the launch of the iPhone, the App Store, the iPad, and the relaunch of Apple TV, we estimate Apple�s total addressable market for hardware, content, and services expanded from roughly $400 billion to $1.5 trillion,” he writes in a research note this morning. “Apple�s Mac share has doubled over the last five years and we believe could double again. In a little over 3 years Apple has captured less than 3% of the mobile phone market by units, but by revenue Apple holds a ~14% share. The iPad is off to a strong start, and the product greatly expands Apple�s addressable market for content distribution. While the new Apple TV and iAd are still in the very early stages, we believe the opportunity is very strong.”

He raised his FY 2011 EPS forecast to $17.67, from $16.67.

At $500, the company would have a market cap of more than $450 billion.

Meanwhile, a number of other analysts weighed in on the stock this morning, with earnings due after the close on Monday.

• Piper Jaffray analyst Gene Munster this morning writes that September quarter results are likely to be in with the Street, but were constrained by iPhone and iPad supply shortages worldwide. “We believe the printed numbers for iPhone and iPad are less relevant than usual given the lack of supply and we expect the company to address these supply shortages on the earnings conference call,” he writes. “Bottom line: we believe over the next three months, investors will become increasingly more optimistic that the Street revenue growth in FY11 of 26% y/y is conservative given the size of Apple’s addressable markets combined with the company’s relatively small market share.”
• RBC analyst Mike Abramsky, on the other hand, thinks Apple will post a “big” Q4 beat; he’s now looking for revenue of $20.3 billion and profits of $4.48 a share, up from $19.7 billion and $4.15. HE sees the company selling 13.5 million iPhones in the quarter, with 5 million iPads, 3.7 million Macs and 9.4 million iPods. His FY 2011 forecast is now $19.27, up from $19.
• UBS analyst Maynard Um expects a solid Q4, and adds that the company could surprise with stronger guidance than the Street is expecting.

AAPL this morning is up $4.04, or 1.3%, to $306.35.

This Just In: Upgrades and Downgrades

At The Motley Fool, we poke plenty of fun at Wall Street analysts and their endless cycle of upgrades, downgrades, and "initiating coverage at neutral." Today, we'll show you whether those bigwigs actually know what they're talking about. To help, we've enlisted Motley Fool CAPS to track the long-term performance of Wall Street's best and worst.

All fertilizer, all the time�
Friday is looking to be a miserable day to own a fertilizer stock -- any fertilizer stock -- as ace agriculture stock analyst Dahlman Rose issues its latest round of prognostications on the sector. Across the length and breadth of the industry, Dahlman rained down pessimistic ratings this morning:

• Agrium (NYSE: AGU  ) -- Sell
• CF Industries (NYSE: CF  ) -- Sell
• Potash (NYSE: POT  ) -- Sell
• And, of course,�Rentech Nitrogen (NYSE: RNF  ) �-- Sell!

Fact is, the only fertilizer stock that escaped the analyst's ire even just a little bit was Mosaic (NYSE: MOS  ) , which somehow got off with only a downgrade to hold.

Why all the pessimism? StreetInsider.com, which reported the ratings this morning, quoted Dahlman to explain its moves thusly: "We believe that the best market conditions for [Nitrogen, Phosphorus, and Potassium fertilizers] are behind them as new capacity moves forcefully ahead." With India having just placed a couple big potash orders at prices ($427 a ton) a bit higher than expected ($416 a ton), prospects look "good" for the first half of this year, but "the industry maybe just one crop away from a significant earnings�downdraft driven by crop and capacity issues."�

After all, even $427 is a steep discount from the $530 a ton that Canpotex (which represents Potash, Agrium, and Mosaic on potash deals) was able to negotiate with India a couple years ago. Plus, with corn prices on the decline, and record acreage being planted this year in the U.S., it's possible farmers will have less cash to spend on fertilizer this year, than investors might like.

Should we be worried?
How worried should you be about all of the above? In a word: very.�First, the analyst making these predictions for potash, nitrogen, and potassium fertilizers is no babe in the woods, or even in the cornfields. While overall, Dahlman Rose is a pretty useless investment banker, sporting a long-term average record for accuracy of less than 40%, and ranking in the bottom 20% of investors we track on CAPS, there is one area in which Dahlman positively shines: fertilizer stocks.

Within this small niche of the market, classified as "chemicals" on CAPS, Dahlman boasts a sterling record of 75% accuracy on its picks and a combined record of 232 percentage points worth of outperformance of the S&P 500 over the past four years.

Quite simply, Dahlman's performance in this field has earned it some respect, and the right to be listened to when it warns investors not to buy shares of Potash and Agrium, Rentech, and CF -- and to be careful about Mosaic as well.

Valuation matters
Dahlman's opinion is also (largely) supported by the numbers. Across the industry, most fertilizer stocks sell for valuations ranging from 16.5 (Potash) to 12.1 (Agrium). Mosaic, the only stock Dahlman is even remotely optimistic about, sits in the middle of the pack at 13.2.

By themselves, these valuations don't look too awfully bad. But remember that projected growth rates for the fertilizer producers are anything but robust. Agrium and Mosaic "boast" projected growth rates of just 7% and 8%, respectively. Potash, only 5%. (Rentech breaks the curve with a 12% profit growth rate, but seeing as it currently has no free cash flow, it's hard to say what that "growth" is really worth.)

Remember, too, that most of these stocks fall far short of the goal of generating free cash flow in line with their reported GAAP income. Rentech is worst in this regard -- actually burning cash even as it claims to be earning $110 million a year on its income statement -- but Potash, Mosaic, and Agrium all generate a whole lot less profit than they let on.

Foolish takeaway
Honestly, I agree with most of what Dahlman is saying about these stocks today. For the most part, they're not as good as they look. If I've got one quibble, though, it's that the analyst is too easy on Mosaic (whose numbers are just as bad as most of the rest) and too hard on the only stock on the list that presents a bargain: CF Industries.

Priced at a P/E ratio of just 7.2, CF is easily the cheapest stock on the list. Meanwhile, with a projected long-term growth rate of 12%, it's tied with Rentech as the group's speediest grower. Best of all, with $1.85 billion in trailing free cash flow, CF Industries is the only fertilizer company out there -- literally, the only one -- currently making more cash profit�than it's claiming to have earned under GAAP.

To my Foolish eye, it's the only one of the five you should even consider buying.

��

With less and less arable land available around the world, increasing yields from existing plots will become increasingly important to keep up with expected population growth. Cheap and effective fertilizers could be the key to achieving this goal. As the global leader in potash production, PotashCorp has several barriers to entry established that make it nearly impossible for competition to break through. Click here now to access The Motley Fool's new premium research report on PotashCorp, in which we cover precisely what these barriers to entry are and detail several other key reasons why this company presents such a compelling investment opportunity today.

Dow Jumps to 14,000 to Close the Week

After a two-day slump, the Dow Jones Industrial Average (DJINDICES: ^DJI  ) battled back today to finish the week at 14,000 even, propelled by a report showing that German business confidence improved sharply this month. On the day, the Dow climbed 120 points, or 0.9%. The market may also believe that stocks were oversold after the two-day drop following the Fed's musings that its bond-buying program may end. Yesterday's reports showing initial unemployment claims are still high, and inflation essentially flat in the consumer price index, may dissuade the Fed from pulling back from its quantitative easing policy.

Hewlett-Packard (NYSE: HPQ  ) was another reason the Dow soared, as shares jumped 12%. The haggard PC-maker delivered profits below Wall Street expectations, but beat estimates on the top line, even as sales fell nearly 6%. Management also guided the current quarter above estimates, saying it expected EPS of $0.80-$0.82, better than analyst projections of $0.77. CEO Meg Whitman was optimistic about HP's future, saying the turnaround is taking hold, and the company will begin allocating more resources toward mobile technology and away from PCs. With a 2013 P/E of six, shares were bound to bounce on any positive news.

Coca-Cola (NYSE: KO  ) shares also finished stronger today, gaining 2.2%, after announcing it would raise its dividend 10% yesterday. The payout hike brings the annual dividend to $1.12, or a yield of 3%.

Meanwhile, UnitedHealth (NYSE: UNH  ) was the only Dow stock to finish down more than 1%, falling 1.4%, amid increasing concerns that the Affordable Care Act could put a dent in profits. No specific news came out today, but investors seemed concerned that new policies will restrict premium increases as well as payouts from Medicaid and Medicare.

Finally, Boeing (NYSE: BA  ) shares rose with the Dow, up 0.9%, on the day it met with Federal Aviation Administration officials to discuss the battery fires in its Dreamliner jet. Boeing called the meeting productive, while the FAA said the 787 would not be allowed to fly until the battery problems were resolved. Boeing is still working to determine the cause of the fires, which have caused all 50 Dreamliner 787s to be grounded.

With great opportunity comes great responsibility. For�Boeing, which operates as a major player in a multi-trillion dollar market, the opportunity is absolutely massive. However, the company's execution problems and emerging competitors have investors wondering whether Boeing will live up to its shareholder responsibilities. In this�premium research report, two of the Fool's best industrial industry minds have collaborated to provide investors with the key, must know issues around Boeing. They'll be updating the report as key news hits, so make sure to claim a copy today by�clicking here now.

Why Aruba Networks Shares Soared

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 wireless network gear maker Aruba Networks (NASDAQ: ARUN  ) surged 20% today after its quarterly results and guidance topped Wall Street expectations.

So what: Aruba's second-quarter beat -- EPS of $0.22 on revenue of $155.4 million versus the consensus of $0.19 and $152 million -- and upbeat guidance for the current quarter reinforce recent excitement over the wireless trends working in its favor. Additionally, strong gross margins and leverage led to record operating margins during the quarter, giving investors plenty of good vibes over profitable growth going forward.

Now what: Management now sees third-quarter EPS of $0.20 and revenue of $159 million-$161 million, versus Wall Street's view of $0.20 and $158.3 million. "Our differentiated approach and value proposition continue to resonate with customers," said CEO Dominic Orr. "A number of our new products contributed to our growth as our industry leading product portfolio is helping organizations around the globe securely manage the proliferation of mobile devices and applications accessing their networks." Of course, with the stock busting through its 52-week high today and trading at a forward P/E of 25, much of that growth might already be baked into the price.

Interested in more info Aruba? Add it to your watchlist.

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 the brand-new free report: "The Motley Fool's Top Stock for 2013." Just click here to access the report and find out the name of this under-the-radar company.

Which Should Be Bigger: Banks, or the Economy?

All the gyrations going on over at Citigroup (NYSE: C  ) has everybody thinking about the size of the biggest banks, once again. While the clamor to "break up the banks," has died down since it was given full throat last summer, the news that the chair of Citi's board of directors no longer believes that a breakup is plausible for the bank has brought the issue to the fore once again.

But, wait. Another tidbit from Bloomberg paints a picture of Citi, JPMorgan Chase (NYSE: JPM  ) , Bank of America (NYSE: BAC  ) , and Wells Fargo (NYSE: WFC  ) being much bigger than they are now, if new accounting rules being floated by the vice chair of the Federal Deposit Insurance Corp. go into effect.

TBTF, redux
According to a recent article by the The Wall Street Journal, Michael E. O'Neill was once of the opinion that Citi should be whittled down to a manageable size. Such a strong believer in that concept was he that he suggested the same course of action for Bank of America when he was being considered for the job of outgoing CEO Kenneth Lewis.

This man is a conservative banker on par with none, as evidenced by his time at the helm of the safe, sound, and profitable Bank of Hawaii (NYSE: BOH  ) . O'Neill nipped and tucked at the bloated bank -- many times smaller than Citi -- and turned it around in just four years. He is obviously not afraid to make changes; just ask Vikram Pandit.

So, for O'Neill to now say that seriously chopping away at Citi is an idea that has come and gone, well, that really means something.

But then, he may have missed the Bloomberg article.

Gargantuan banks that would dwarf the U.S. economy?
Apparently, Thomas Hoenig, the FDIC vice chair in question, feels that U.S. banks should be using accounting methods�more often seen in Europe. The rules would effectively move off-balance sheet items like derivatives and mortgage-backed securities right back onto the books, making the country's biggest banks absolutely gigantic. The article mentions that Citi would grow by 60%, while JPMorgan, B of A, and Wells would double in size.

According to Bloomberg's estimates, the assets of these four banks would be about 93% of the country's GDP for last year. The article notes that these very items, moved off to the side, caused much of the mayhem associated with the financial meltdown. Of course, it was likely more their dodgy qualities that made them so dangerous, rather than their off-sheet location.

At any rate, we needn't fear the advent of bigger-than-life banks. It seems that ideas like this have been floated before, only to be withdrawn�under intense lobbying pressure by banks. As much fun as the subject of adjusting the size of TBTF banks is to bandy about, it seems like that is as far as it will ever go.�

Citigroup's stock looks tantalizingly cheap. Yet the bank's balance sheet is still in need of more repair, and there's a considerable amount of uncertainty after a shocking management shakeup. Should investors be treading carefully, or jumping on an opportunity to buy? To help figure out whether Citigroup deserves a spot on your watchlist, I invite you to read our premium research report on the bank today.�We'll fill you in on both reasons to buy and reasons to sell Citigroup, and what areas that Citigroup�investors need to watch going forward.�Click here now�for instant access to our best expert's take on Citigroup.

Disney Rises as Citi Raises to Hold, $37 Target

Shares of Walt Disney (DIS) are up 17 cents, or half a percent, at $35.93 after Citigroup analyst Jason Bazinet upgraded the stock to “Hold” from “Sell” and raised his target price to $37 from $31, following last night’s better-than-expected fiscal Q2 results.

The shares had sold off after the results on some perceived weakness in cable networks.

Bazinet raised his estimate for this year’s profit to $2.05 from $1.98, based on the strength of studio revenue and the operating margin, which improved with lower distribution costs.

The cable networks business is a mixed bag: Bazinet raised his revenue estimate thanks to a brightened outlook at ESPN and with TV ad sales rising, though he notes higher costs for distributing ESPN.

Bazinet raised his pre-tax operating profit margin on the studio business to 11.4% this year from a prior expectation of 6%, which he now says was “too cautious.” For next year, he sees that rising to 13.8%.

Bazinet’s price target of $37 represents a 14.5 multiple of next year’s projected $2.53 per share in earnings, which he notes is below the stock’s 5-year average of 16 times.

To get to “Buy,” Bazinet needs to see a stronger line-up, some sense that studio profit margin will persist, or lower costs for ESPN, he writes.

Allscripts Healthcare Solutions Goes Negative

Allscripts Healthcare Solutions (Nasdaq: MDRX  ) reported earnings on Feb. 19. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Allscripts Healthcare Solutions missed estimates on revenues and missed estimates on earnings per share.

Compared to the prior-year quarter, revenue dropped. Non-GAAP earnings per share dropped significantly. GAAP earnings per share dropped to a loss.

Margins dropped across the board.

Revenue details
Allscripts Healthcare Solutions reported revenue of $350.9 million. The 17 analysts polled by S&P Capital IQ predicted sales of $367.1 million on the same basis. GAAP reported sales were 8.4% lower than the prior-year quarter's $383.2 million.

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

EPS details
EPS came in at $0.16. The 19 earnings estimates compiled by S&P Capital IQ forecast $0.20 per share. Non-GAAP EPS of $0.16 for Q4 were 36% lower than the prior-year quarter's $0.25 per share. GAAP EPS were -$0.14 for Q4 versus $0.13 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 38.8%, 580 basis points worse than the prior-year quarter. Operating margin was -7.6%, 1,980 basis points worse than the prior-year quarter. Net margin was -6.9%, 1,320 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $365.9 million. On the bottom line, the average EPS estimate is $0.18.

Next year's average estimate for revenue is $1.52 billion. The average EPS estimate is $0.80.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 434 members out of 463 rating the stock outperform, and 29 members rating it underperform. Among 118 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 111 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 $10.90.

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.

Zix Beats on Both Top and Bottom Lines

Zix (Nasdaq: ZIXI  ) reported earnings on Feb. 19. Here are the numbers you need to know.

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

Compared to the prior-year quarter, revenue grew significantly. Non-GAAP earnings per share contracted significantly. GAAP earnings per share dropped significantly.

Gross margins grew, operating margins contracted, net margins dropped.

Revenue details
Zix reported revenue of $11.7 million. The three analysts polled by S&P Capital IQ anticipated a top line of $11.3 million on the same basis. GAAP reported sales were 18% higher than the prior-year quarter's $9.9 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 $0.05. The two earnings estimates compiled by S&P Capital IQ anticipated $0.04 per share. Non-GAAP EPS of $0.05 for Q4 were 78% lower than the prior-year quarter's $0.23 per share. GAAP EPS of $0.06 for Q4 were 74% lower than the prior-year quarter's $0.23 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 82.4%, 110 basis points better than the prior-year quarter. Operating margin was 13.2%, 1,650 basis points worse than the prior-year quarter. Net margin was 34.1%, 11,730 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $11.9 million. On the bottom line, the average EPS estimate is $0.05.

Next year's average estimate for revenue is $50.1 million. The average EPS estimate is $0.20.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 543 members out of 779 rating the stock outperform, and 236 members rating it underperform. Among 69 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 69 give Zix a green thumbs-up, and give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Zix is buy, with an average price target of $4.58.

Internet software and services are being consumed in radically different ways, on new and increasingly mobile devices. Is Zix on the right side of the revolution? Check out the changing landscape and meet the company that Motley Fool analysts expect to lead "The Next Trillion-dollar Revolution." Click here for instant access to this free report.

• Add Zix to My Watchlist.

Why Vulcan Materials May Be About to Take Off

Here at The Motley Fool, I've long cautioned investors to keep a close eye on inventory levels. It's a part of my standard diligence when searching for the market's best stocks. I think a quarterly checkup can help you spot potential problems. For many companies, products that sit on the shelves too long can become big trouble. Stale inventory may be sold for lower prices, hurting profitability. In extreme cases, it may be written off completely and sent to the shredder.

Basic guidelines
In this series, I examine inventory using a simple rule of thumb: Inventory increases ought to roughly parallel revenue increases. If inventory bloats more quickly than sales grow, this might be a sign that expected sales haven't materialized. Is the current inventory situation at Vulcan Materials (NYSE: VMC  ) out of line? To figure that out, start by comparing the company's inventory growth to sales growth. How is Vulcan Materials doing by this quick checkup? At first glance, OK, it seems. Trailing-12-month revenue increased 0.1%, and inventory increased 2.2%. Comparing the latest quarter to the prior-year quarter, the story looks decent. Revenue dropped 1.0%, and inventory increased 2.2%. Over the sequential quarterly period, the trend looks worrisome. Revenue dropped 16.5%, and inventory dropped 0.6%.

Advanced inventory
I don't stop my checkup there, because the type of inventory can matter even more than the overall quantity. There's even one type of inventory bulge we sometimes like to see. You can check for it by examining the quarterly filings to evaluate the different kinds of inventory: raw materials, work-in-progress inventory, and finished goods. (Some companies report the first two types as a single category.)

A company ramping up for increased demand may increase raw materials and work-in-progress inventory at a faster rate when it expects robust future growth. As such, we might consider oversized growth in those categories to offer a clue to a brighter future, and a clue that most other investors will miss. We call it "positive inventory divergence."

On the other hand, if we see a big increase in finished goods, that often means product isn't moving as well as expected, and it's time to hunker down with the filings and conference calls to find out why.

What's going on with the inventory at Vulcan Materials? I chart the details below for both quarterly and 12-month periods.

Source: S&P Capital IQ. Data is current as of latest fully reported quarter. Dollar amounts in millions. FY = fiscal year. TTM = trailing 12 months.

Source: S&P Capital IQ. Data is current as of latest fully reported quarter. Dollar amounts in millions. FQ = fiscal quarter.

Let's dig into the inventory specifics. On a trailing-12-month basis, work-in-progress inventory was the fastest-growing segment, up 42.0%. On a sequential-quarter basis, each segment of inventory decreased. Although Vulcan Materials shows inventory growth that outpaces revenue growth, the company may also display positive inventory divergence, suggesting that management sees increased demand on the horizon.

Foolish bottom line
When you're doing your research, remember that aggregate numbers such as inventory balances often mask situations that are more complex than they appear. Even the detailed numbers don't give us the final word. When in doubt, listen to the conference call, or contact investor relations. What at first looks like a problem may actually signal a stock that will provide great returns. And what might look hunky-dory at first glance could actually be warning you to cut your losses before the rest of the Street wises up.

Looking for alternatives to Vulcan Materials? 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 Vulcan Materials �to My Watchlist.

Top Stocks To Buy For 2/15/2013-4

Corn Products International, Inc. (NYSE:CPO) shares were transacted unexpectedly with a volume of 1.78 million shares as compared to its average volume of 0.580 million shares. CPO opened at $50.11 scored +3.81% closed $50.45. Its 52 week price range is $28.70 - $50.83.

CPO has earnings of $173.70 million and made $3.92 billion sales for the last 12 months. Its quarter to quarter sales remained 5.04%. The company has 75.62 million of outstanding shares and 75.08 million shares were floated in the market.

CPO has an insider ownership at 0.43% and institutional ownership remained 86.31%. Its return on investment (ROI) for the last 12 month was 5.84% as compare to its return on equity (ROE) of 10.13% for the last 12 months.

The price moved ahead +5.45% from the mean of 20 days, +6.99% from 50 and went up 29.79% from 200 days average price. Company�s performance for the week was 5.70%, +3.00% for month and yearly performance remained 52.69%.

Its price volatility for a month remained 2.30% whereas volatility for a week noted as 2.71% having beta of 1.18. Company�s price to sales ratio for last 12 months was 0.97 while its price to book ratio for the most recent quarter was 2.05 and its earnings before interest, tax, depreciation and amortization (EBITDA) remained 515.60 million for the past twelve months.

Movers & Shakers: Tuesday movers: Herbalife jumps ahead of earnings

SAN FRANCISCO (MarketWatch) � Office-supply retailers Office Depot Inc. and OfficeMax Inc. advanced Tuesday on expectations of a merger while Herbalife Ltd. extended gains ahead of its quarterly earnings report after the closing bell.

Gainers INVESTING
� Bear correction or bull capitulation?
�'Death cross' isn't gold's only problem
� Icahn's stock picks for 2013
� How Berlusconi could crash the markets
� More markets commentary in Trading Deck �
/conga/story/misc/investing.html250568

First Solar Inc. FSLR �shares added 5.5% as solar-energy stocks found favor with investors again on an improved outlook for the sector. See Trading Deck: Give solar stocks, but not ETFs, some love.

Shares of Office Depot Inc. ODP �gained 10%, coming off of earlier highs, while OfficeMax OMX �shares rose 21% after The Wall Street Journal reported on Monday that the two office-supply retailers are in advanced merger talks. LinkTextChunk((LinkChunk)chunk)

Staples SPLS �shares also rallied 12% on the Journal�s report. See: Staples wins if Office Depot and OfficeMax merge.

Click to Play How to be a disruptive innovator

What does it take to be a disruptive innovator in today's world? The founder of Priceline and curator of TEDMED, Jay Walker, has some tips for innovation.

Sealed Air Corp. SEE � shares jumped 12%. The food-packaging company on Tuesday reported fourth-quarter adjusted earnings of 34 cents a share, better than the 29 cents forecast by analysts in a FactSet survey.

Decliners

Humana HUM �shares fell 6.3% as the Centers for Medicare and Medicaid Services proposed a decline in 2014 rates for Medicare Advantage that was lower than the health insurer had expected. See: Humana falls on proposed Medicare cuts.

Top tickers trending

$HLF: Herbalife HLF �shares are strong ahead of the company�s fourth-quarter results due after the closing bell. The nutritional-supplement company has been at the center of a public dispute between activist investor Carl Icahn, who disclosed late Thursday a 12.98% stake in the company, and hedge-fund manager Bill Ackman, who accused the company of being a pyramid scheme and shorted its stock. LinkTextChunk((LinkChunk)chunk)

Meanwhile, high-profile investor Daniel Loeb, who runs Third Point, has unwound some of his long position in Herbalife, according to news reports over the weekend. LinkTextChunk((LinkChunk)chunk)

Getty Images Enlarge Image Carl Icahn

In January, Herbalife said it expects to report fourth-quarter earnings of $1.02 a share to $1.05 a share. Analysts surveyed by FactSet forecast the company to earn $1.03 a share.

$GOOG: Google Inc. GOOG �shares rose to trade above $800 for the first time in the company�s history. See: Google sets new high above $800.

The gains were, in part, fueled by reports that the Internet company was looking into launching retail stores to sell Google-branded products. LinkTextChunk((LinkChunk)chunk)

@Mix_311: $GOOG the new $AAPL

@credittrader: Cue topeka with a $1111 target for $GOOG

$MSFT: Microsoft Corp. MSFT �was trending on Twitter as the software company officially launched its email service Outlook.com on Tuesday. The company said it would �upgrade� Hotmail users to Outlook.com. �The upgrade is seamless and instant for Hotmail customers; everything from their @hotmail.com email address, password, contacts, etc. will stay the same,� said the company in a statement.

@Ktr8der: HotMail? Last time I heard that term, ppl were putting out $1000 price targets on $QCOM. @CNBC #justsaying $MSFT

Diageo Launches Pioneering eCommerce Site

LONDON -- Alexander & James is�Diageo's (LSE: DGE  ) (NYSE: DEO  ) first foray into e-commerce that directly targets customers seeking the multinational alcoholic beverages company's premium labels,�Blue Label�and�Gold Label Reserve Johnnie Walkers,�Tanqueray No. 10,�Ciroc,�Ketel One�and selected single malts such as�Cragganmore,�Singleton, and�Caol�Ila.

By launching the�website, Diageo aims to capitalize on the ever-increasing trend to buy online and will sell directly to "discerning shoppers" in the U.K.

Alexander & James managing director Philippa Dickson commented:

We created Alexander & James in response to the way people are seeking to purchase luxury items online. We identified an opportunity to create a luxury e-commerce platform that would be engaging and inspiring, bringing the brand product credentials to life -- craftsmanship, heritage, provenance.

Alexander & James is more than an online shop, it provides ideas that will appeal to the lifestyle of the discerning person alongside new and beautifully packaged gift ideas. It is a white glove, end to end luxury brand experience where people will be able to learn about our spirits and receive expert advice on food pairing and mixology ideas for every occasion. We provide the ease of making a well-informed purchase online.

On a day that saw the Office for National Statistics reveal that�U.K. retail sales fell in January, despite analysts having predicted a rise, the move could prove to be a canny one for Diageo. Volumes were down 0.6% year on year, although heavy snowfall in the month was blamed for the decrease in footfall. It ought to be pointed out, too, that larger retailers fared better than their smaller counterparts, while the amount spent online accounted for 10.1% of all retail spending (excluding fuel).

With innovative strategies like the launch of Alexander &�James and�increasing its spend on key markets, I believe Diageo can continue to grow over the next few years, having already seen earnings increase at a rate of 14% per year over the last five.

Diageo is currently on a prospective yield of around 2.4%. If your strategy focuses on income from shares, however, then you may wish to read�this exclusive in-depth report�about another high-income opportunity within the FTSE 100.

The blue chip in question offers a 5.7% yield,�might be worth 850 pence�versus around 690 pence now, and has just been declared the "Motley Fool's Top Income Stock for 2013"! Just�click here�to download the report -- it's absolutely free.

link

Opinion: John Boehner: The President Is Raging Against a Budget Crisis He Created

A week from now, a dramatic new federal policy is set to go into effect that threatens U.S. national security, thousands of jobs and more. In a bit of irony, President Obama stood Tuesday with first responders who could lose their jobs if the policy goes into effect. Most Americans are just hearing about this Washington creation for the first time: the sequester. What they might not realize from Mr. Obama's statements is that it is a product of the president's own failed leadership.

The sequester is a wave of deep spending cuts scheduled to hit on March 1. Unless Congress acts, $85 billion in across-the-board cuts will occur this year, with another $1.1 trillion coming over the next decade. There is nothing wrong with cutting spending that much�we should be cutting even more�but the sequester is an ugly and dangerous way to do it.

Related Video

Wynn Resorts Board Member Moves On

This afternoon,�Wynn Resorts (NASDAQ: WYNN  ) announced that Kazou Okada, one of its nine board members, has tendered his resignation. Just weeks ago, the company announced that allegations which Okada brought against the company, pertaining to what he called "improper donations" to the University of Macau, were found to be "unfounded" by the Nevada Gaming Control Board. At that time, the U.S. District court of Nevada granted Wynn a motion to dismiss a lawsuit pending against the company, which also stemmed from the donation. In conjunction to these issues, Wynn had decided to hold a special meeting of shareholders on February 22�to vote on removing Kazuo Okada from the company's board of directors�.

Since then, Okada has attempted to block the vote, but the U.S. District Court for the District of Nevada dismissed the motion, laying the way for the vote scheduled for tomorrow�. Wynn Resorts will still hold the meeting, but after today's announcement, the meeting will likely be just for the formalities.

Okada's decision to resign prior to the meeting was presumably due to the fact that preliminary results showed 99.7% of the shares which had been voted desired Okada's removal. The overwhelming support against Okada was surely due to the fact that other board members had deemed him unsuitable, after a former FBI Director found evidence of improper conduct under the Foreign Corrupt Practices Act by Kazuo and his affiliates. Additionally, the Institutional Shareholder Services, a proxy advisory firm, recommended shareholders vote to remove Okada. �

In the announcement, Steve Wynn, the company's Chairman and CEO, thanked shareholders for their support in removing Okada, and expressed his confidence in the company's pursuit of its growth strategy and future prospects. �

More Foolish insight

Macau has grown to five-and-a-half times the size of the Las Vegas Strip, with $33.6 billion of gaming revenue in 2011, and Wynn Resorts is perfectly positioned to capture the opportunity in the region. Is that reason enough for investors like yourself to consider investing in Wynn right now? The Motley Fool answers this question and more in our most in-depth Wynn Resorts research available for smart investors like you. Thousands have already claimed their own premium ticker coverage, and you can gain instant access to your own by clicking here now.

Nonprofits Under Pressure to Generate Revenue, Improve Programming

Leaders of U.S. nonprofits are rethinking revenue, improving program results and expanding development initiatives this year, according to a new survey.

Forty-six percent of respondents were reconsidering their revenue model and income generation, and 44% were expanding development initiatives. Forty-six percent said they were focused on improving program results and metrics.

Veris Consulting, a specialist in outsourced financial management and survey research for nonprofits, and Brittenford Systems, a technology systems provider for nonprofits, surveyed senior officials at charities, national membership and trade associations and policy organizations around the turn of the year.

The report found that nonprofits are under pressure to pursue comprehensive strategic planning, sophisticated development strategies and sharp execution in 2013.

The findings showed that organizations needed to implement a more disciplined approach when building out revenue streams, for example by tailoring approaches to deepen relationships and connect strategically with current and prospective donors.

Only 53% of respondents said they distributed their management and board reports on a monthly basis, with 40% reporting on key operational metrics.

The report said that although real-time dashboard reporting among larger nonprofits had increased, the majority still needed to progress toward more timely, detailed reporting to allow leaders to improve forecasting and strategic decision-making.

The hiring outlook at nonprofits was stable, according to the report, with 27% planning to add one or two staffers and 13% looking at three or more new hires. Fewer nonprofits planned to reduce their staffs than in 2011.

Nearly three-quarters of respondents forecasted growth in 2013, up slightly from 2011; but more predicted slow or no growth compared with the earlier period.

“Interestingly, 72% of nonprofits are planning for growth, but only 40% plan to hire,” John Gillespie, managing director for CFO practice at Veris Consulting, said in a statement.

“This indicates that nonprofits are still under-resourced and struggling to master revenue generation. There is a real need for nonprofit CEOs and boards to embrace a more disciplined approach to strategic planning, laser-focused fundraising and allocating resources to ensure success.”

Top Stocks For 2/21/2013-8

Lime Energy (Nasdaq:LIME) reported that it has received a contract with an ESCO partner for 50 schools in Prince George County, MD.

The project consists of water retrofit upgrades and building envelope improvements for energy efficiency. The company has been working for several months at each location to develop and present the final scope and total savings. Under the contract, Lime’s Public Sector division (formerly known as Applied Energy Management) will provide the installation of water saving technologies including new low flow water closets, the retrofit of urinals, new showerheads, and faucet aerators. Total water savings is estimated to be over 18.7 million gallons per year.

LNB Bancorp, Inc. (Nasdaq:LNBB) declared recently a fourth quarter 2010 cash dividend of $.01 a share, payable on January 1, 2011 to shareholders of record on December 4, 2010.

LNB Bancorp, Inc. operates as the holding company for The Lorain National Bank, which provides personal, mortgage, and commercial banking products; and investment management and trust services to individuals and businesses in Ohio. It accepts savings, money market, demand, interest checking, and time deposits, as well as certificates of deposit.

DryShips Inc. (Nasdaq:DRYS) reported on December 02, 2010 that its subsidiary, Drillships Hydra Owners (the owning company of the Ocean Rig Corcovado), has signed a commitment letter with an international lender for a $325 million Senior Secured Bridge Loan Facility.Under the terms of this facility which is expected to be executed no later than December 31, 2010, the loan is to be utilized in one single drawdown to fund the delivery installment of the Ocean Rig Corcovado (Hull 1837) scheduled for delivery from Samsung Heavy Industries in January 2011.

The bridge loan has a maturity of six months after the drawdown date.

NGL Energy Partners Beats Analyst Estimates on EPS

NGL Energy Partners (NYSE: NGL  ) reported earnings on Feb. 14. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q3), NGL Energy Partners missed estimates on revenues and beat expectations on earnings per share.

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

Margins grew across the board.

Revenue details
NGL Energy Partners reported revenue of $1.34 billion. The two analysts polled by S&P Capital IQ looked for revenue of $1.45 billion on the same basis. GAAP reported sales were much higher than the prior-year quarter's $470.6 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 $0.75. The two earnings estimates compiled by S&P Capital IQ averaged $0.64 per share. GAAP EPS of $0.75 for Q3 were 200% higher than the prior-year quarter's $0.25 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 10.0%, 340 basis points better than the prior-year quarter. Operating margin was 3.8%, 200 basis points better than the prior-year quarter. Net margin was 3.0%, 170 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $1.66 billion. On the bottom line, the average EPS estimate is $0.92.

Next year's average estimate for revenue is $4.57 billion. The average EPS estimate is $1.39.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 20 members out of 20 rating the stock outperform, and members rating it underperform. Among seven CAPS All-Star picks (recommendations by the highest-ranked CAPS members), seven give NGL Energy Partners a green thumbs-up, and give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on NGL Energy Partners is buy, with an average price target of $29.67.

Is NGL Energy Partners the right energy stock for you? Read about a handful of timely, profit-producing plays on expensive crude in "3 Stocks for $100 Oil." Click here for instant access to this free report.

• Add NGL Energy Partners to My Watchlist.

Fairchild Semi Rallies; Q3 Revs Miss, But EPS Top Estimates

Fairchild Semicondcutor (FCS) this morning posted Q3 revenue of $414.4 million, a bit shy of the Street consensus at $417.2 million, with adjusted EPS of 42 cents a share, ahead of the Street at 39 cents. Gross margin was 36.5%, up 130 basis points from Q2.

The chip maker expects Q4 revenue of $390 million to $410 million; the Street has been forecasting $404.1 million. The company expects another 50-100 point increase in gross margin.

“We generated solid gross margin and earnings growth in the third quarter due to continued improvements in product mix,” CEO Mark Thompson said in a statement. “Our mix benefited from stronger sales of our mobile power and switch products as well as many of our high voltage products and we expect these trends to continue in the fourth quarter.”

FCS is up 76 cents, or 8%, to $10.21.

Kingfisher Slips on Poor B&Q Sales

LONDON --�Kingfisher� (LSE: KGF  ) �this morning released a trading update for the fourth quarter, which saw the company suffer after a tough period.

Although total sales for the 14 weeks to 2 February 2013 against the 13-week period last year were up 1.5%, on a like-for-like (LFL) basis, total group sales dropped 3.4%, and were down 1% in constant currencies.

The owner of the B&Q and Screwfix brands saw sales at home in the U.K. suffer in particular, with a LFL decline of 5.8% overall. Operations in France didn't fare much better, either, showing a 2.4% drop in LFL sales, although "Other International" -- including Poland, Spain, Russia and China -- did at least see a 0.3% increase in sales against the comparative period the previous year.

Back to the United Kingdom, B&Q reported total sales of 842 million pounds, down 6.4% on both LFL and the comparable 13-week basis at constant currency. Management put this down to "the generally weak consumer backdrop in the U.K. and a particularly challenging environment in Ireland where our nine stores are now subject to an Examinership process."

Screwfix performed better, though, with total sales for the 14 weeks coming in at 155 million pounds, a 10.3% increase on the comparable 13-week basis. Kingfisher credited this to the company "benefiting from the continued roll out of new outlets and the success of 'click, pay & collect.'"

Group chief executive Ian Cheshire commented:

We have had a tough fourth quarter, ending what has been a tough year affected by unfavourable foreign exchange, particularly poor weather in the U.K. and weaker consumer confidence in our major markets. Thanks to the hard work of our teams and our established programme of self-help initiatives, we end the year in good shape with a strong balance sheet and higher market share. We also made good progress with our new 'Creating the Leader' programme which aims to help our customers have better and more sustainable homes.

Looking ahead we will continue to actively manage the business in these challenging markets with particular focus on improving our customer offer, optimising our cash generation and delivering shareholder value.

Shares in Kingfisher fell marginally on the news, down 0.4% to 277 pence. The company is something of a "slow burner," showing steady if not spectacular growth across the last five years, but enthusiasm surrounding the shares has dampened in the last 12 months, sending them down from a five-year high of 314 pence early last year to their current price today. Whether that's a buying opportunity is, of course, up to you, but remember to do plenty of research into the company before taking the plunge.

A forecast yield of 3.4% isn't too shabby for a FTSE 100 company. However, our top analysts have compiled an�exclusive in-depth report�about another high-income opportunity in a different sector. The blue chip in question offers a 5.7% income,�might be worth 850 pence�versus around 690 pence now, and has just been declared the "Motley Fool's Top Income Stock for 2013!" Just�click here�to download the report -- it's absolutely free.

Airgas to Build New Carbon Dioxide Plant

Specialty gas distributor Airgas (NYSE: ARG  ) announced it will�build a new 450 ton-per-day liquid carbon dioxide plant to replace its plant at the Shell Deer Park Refinery complex that is expected to close later this year. Construction is expected to begin soon, and will be completed by the fall, as�many of the existing assets from the current facility -- such as storage tanks, truck loading equipment, scales, and analytical equipment -- will be repurposed at the new plant.

Feedstock of raw�carbon dioxide for the new facility will be provided through long-term supply agreements that Airgas signed with affiliates of Denbury Resources. The two companies have a decade-long relationship going back to�2001, when Airgas sold its Jackson Dome reserves, and the associated 183-mile pipeline in Mississippi, to Denbury.�

The new facility will supply carbon dioxide to existing and new customers in the petrochemical industry, as well as traditional food chilling and beverage carbonation industries.�Airgas currently operates 11 liquid carbon dioxide plants, and 52 dry ice facilities, supplying customers in industries ranging from chemicals, pharmaceuticals, and biotech, to food processing, food service, and beverages.

Eurosystem balance sheet shrinks further

FRANKFURT--Banks in the euro zone have prepaid another EUR5 billion of the three-year loans issued by the European Central Bank in late 2011, reducing the volume of the Eurosystem's balance sheet, a broad measure of risk in the single currency zone.

In the week ending Feb. 15, the volume fell 11.85 billion euros ($15.81 billion), or about 0.4% compared with the previous week, to its the lowest level in nearly a year, ECB data showed Tuesday.

The ECB issued three-year loans in December 2011 to mitigate the effects of the euro-zone debt crisis.

Banks can now repay their loans early on a weekly basis. On Jan. 30, the first day that they were allowed to do so, banks repaid EUR137 billion, in a show of confidence that financial markets are returning to health.

The Eurosystem comprises the ECB and the 17 euro-zone national central banks.

The balance sheet settled at EUR2.76 trillion last week, its lowest since early March last year. The balance sheet remains 3.5% larger than it was one year ago.

Write to Christopher Lawton at christopher.lawton@wsj.com

Dow Jones Newswires

Are You Expecting This from NRG Energy?

NRG Energy (NYSE: NRG  ) is expected to report Q4 earnings around Feb. 22. 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 NRG Energy's revenues will grow 29.1% and EPS will remain in the red.

The average estimate for revenue is $2.75 billion. On the bottom line, the average EPS estimate is -$0.08.

Revenue details
Last quarter, NRG Energy booked revenue of $2.33 billion. GAAP reported sales were 13% lower than the prior-year quarter's $2.67 billion.

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 $0.25. GAAP EPS were -$0.01 for Q3 versus -$0.24 per share for the prior-year quarter.

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 26.0%, 280 basis points better than the prior-year quarter. Operating margin was 4.5%, 310 basis points worse than the prior-year quarter. Net margin was 0.0%, 210 basis points better than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $8.93 billion. The average EPS estimate is $1.35.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 701 members out of 718 rating the stock outperform, and 17 members rating it underperform. Among 212 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 208 give NRG Energy a green thumbs-up, and four give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on NRG Energy is outperform, with an average price target of $25.08.

Is NRG Energy the right energy stock for you? Read about a handful of timely, profit-producing plays on expensive crude in "3 Stocks for $100 Oil." Click here for instant access to this free report.

• Add NRG Energy to My Watchlist.

Why SINA Shares Jumped

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 SINA (NASDAQ: SINA  ) have jumped today by as much as 11% after the company reported earnings.

So what: Revenue in the fourth quarter added up to $139.1 million, which was notably higher than the $133.9 million that investors were expecting. Non-GAAP net income was $9 million, or $0.13 per share, easily topping the consensus estimate of $0.05 per share. The company's Weibo micro-blogging service continues to gain traction.

Now what: Investors are optimistic that the company is making progress with monetizing Weibo, which now has over 500 million users. Weibo ad sales are on the rise and the service is easily the dominant micro-blogging service in China. First-quarter guidance calls for non-GAAP net revenue in the range of $115 million to $119 million, of which $94 million to $96 million should be ad sales.

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

With the U.S. relying on the rest of the world for such a large percentage of our goods, many investors are ready for the end of the "made in China" era. Well, it may be here. Read all about�the biggest industry disrupters since the personal computer�in our free report: "3 Stocks to Own for the New Industrial Revolution."�Just�click here to learn more.

�