If I can do my taxes, any Millennial can

For the first time this year, I did my own taxes. Actually, I did them twice.

I've only been filing a tax return for the past two years, but I have been around long enough to pick up on the dread and anxiety that surrounds tax season. TAXES. It's like a four-letter word. It might as well be spelled T@%$!.

As a young person though, the prospect of April 15 looming has meant a pretty hefty deposit into my bank account the past two years, the welcome tax refund. Time to go shopping and buy myself an iPad! OK, maybe a little shopping, but I've never actually splurged on an iPad and the first year I used half my refund toward my student loans.

My first year out of college, I passed along my W-2 to my parents' "tax man." I got my refund about a month later and remained none the wiser about what had happened behind the scenes. Last year, after seeing how much "tax man" had charged for his services, I decided to spare my parents the expense and turned to my boyfriend's dad for help — because what better person to help you file your taxes than an IRS auditor?

He assured me at the time that filing your taxes really wasn't that hard and that I could probably do it myself. This year, in the name of journalism and my own education, I took his advice. I decided I'd take on my taxes with a plan to write about my experience and, I hope, convince my fellow Millennials that it wasn't that horrible. So, here I am, after a week of doing my taxes a couple of times, telling you that it actually wasn't that horrible. In fact, it was easy and even a little gratifying.

Just for good measure, I went through the process of filling out my information twice (I filed only once), with both TaxSlayer and H&R Block's online programs. Then I met with an H&R Block tax adviser to double-check my work. The online programs make the whole process so easy I thought I had done something wrong. You'll basically be asked a series of questions about your life (did you move? change jobs? have a baby?) and be ! prompted to enter certain information based on how you answer.

Tax season may be the one time a year Millennials catch a break for falling so far behind on the adulthood spectrum; those milestones we're not achieving — marriage, buying a house, having a kid — make filing your taxes more complicated and prone to errors. Some of those situations also often mean tax benefits, but hey, we can't have it both ways.

The H&R Block adviser I met with in Vienna, Va., Jeffrey Momoi, told me the most common mistake he sees on tax returns is missing out on credits like the child credit and dependent care credit, which both reduce the amount of taxes you owe just for having a child and paying for child care.

Good to know, but I don't plan to be able to claim those credits anytime soon. I have a job and I'm paying off my student loans, which are essentially the only two circumstances that figure into my taxes. Break No. 2 for Millennials doing taxes: If you've paid interest on a student loan in the past year, that's tax deductible up to $2,500 and depending on your income. If you've paid $600 or more, your lender should provide you with a form called the 1098-E that will tell you how much interest you paid.

And while I seriously considered leaving it off because, well, who would ever really know? I also included more than $500 I made babysitting in the fall in the "other income" category. Because if I'm going to write publicly about doing my taxes, I probably shouldn't lie about them, right? Plus, disclosing this only reduced my refund slightly, and I figure I get "being a good person" points. Another FYI: If you work in a restaurant and receive cash tips, you have to report those as well.

After entering my W-2 and student loan interest information, that was it. The information was transferred to my state return. I answered "no" to the rest of the questions I was asked by the programs and was sent straight to the e-file part of the process. The programs automatically calculate yo! ur deduct! ions and credits and tell you how much money you owe or can expect to get back.

Unless you have an incredibly complicated tax situation, I'd say at least try to do your taxes yourself first. Online programs will walk you through the whole thing step by step and tell you what forms you should have on hand to be able to provide the right information. Doing mine with H&R Block in person was going to cost me almost $200 in expertise and labor! The expense takes into account personalized advice and the risk factor associated with your return, Momoi says. Doing them online would cost $28 through H&R Block and about $24 through TaxSlayer.

Most tax-filing programs let you do a federal return for free but charge for state returns because they're more complicated to process. I ultimately filed through TaxSlayer for the cheaper state return. H&R Block does offer a free "second look" where a tax pro will go over your return once you've already filed. Though if you have to amend and refile, there's a charge.

In a few weeks, I'll be a couple thousand dollars richer, all for about 45 minutes' worth of work (at least, if I had stuck with just doing my taxes once!). Thanks, government — even though most of it will go back to you anyway in the form of my federal student loan payments. T@$#!

Safeway Could Be On Kroger's Grocery List

NEW YORK (The Deal) -- Safeway (SWY) could be the latest player to join the wave of consolidating grocery chains after confirming it is considering possible transactions, and sources said they believe it could draw interest from rival Kroger (KR) in addition to various private equity firms.

Pleasanton, Calif.-based Safeway on Wednesday confirmed that it is engaged in discussions regarding a potential sale of the company.

In addition, Safeway revealed plans to pursue strategic options for its 49% stake in Mexican grocery store chain Casa Ley SA and its intentions to distribute its remaining 27.8 billion shares in the Blackhawk Network Holdings Inc. gift card business to shareholders.

The announcement by Safeway, which has been facing shareholder pressure to improve financial results, comes amid increasing deal activity in the grocery and supermarket space over the past couple of years. Among recent deals on the larger side have been Kroger's $3.54 billion acquisition of Harris Teeter Supermarkets Inc. on July 9, representing an enterprise value-to-Ebitda multiple of about 7.33. SuperValu Inc., on Jan. 10, 2013, sold its five retail chains - Albertson's LLC, Acme, Jewel-Osco, Shaw's and Star Market - to an investor group led by Cerberus Capital Management LP for $3.3 billion in cash and assumed debt. More recently, on Sept. 10, Albertson's agreed to buy family-owned Texas grocery chain United Supermarkets LLC. Financial terms weren't disclosed, but one source said at the time that Albertson's likely paid between 6.2 times to 7 times United Supermarket's trailing 12-month adjusted Ebitda. Based on that range and Safeway's $1.58 billion in Ebitda during fiscal 2013, a deal for the chain would be valued between approximately $9.27 billion and $11.06 billion. While Safeway didn't disclose the parties it has already held talks with, Cerberus' name has surfaced in reports that claim it would be interested. Cerberus officials couldn't be reached Thursday. Sources said the pairing between the private equity firm and Safeway would make sense, given Cerberus' success in the space and the opportunity for significant synergies. "Somehow Cerberus has made private equity ownership of supermarkets work pretty well," said John Loeb, a principal at food industry-focused investment bank J.H. Chapman Group LLC, in a phone interview. "They've clearly done a good job with Jewel. They were falling behind in the market, as well." Antony Karabus, president of SD Retail Consulting LLC, said that, in addition to Cerberus and other PE firms, a deal with Kroger could also make sense. "Kroger is fantastic at absorbing companies and they're an unbelievably well-run company," he noted. The announcement is the latest in a string of moves by new CEO Robert Edwards, Safeway's former CFO who replaced Steve Burd in the top spot upon his retirement in May. Only a couple of months ago, Edwards discontinued all operations in the Chicago market and he recently sold the company's Canadian operations, Canada Safeway Ltd., to Sobeys Inc. for C$5.8 billion ($5.22 billion). Though Karabus thinks a sale of the company as a whole is the most likely route, the second-most probable action would be "selling off the pieces that aren't core and focusing all capital investments in the markets that are strongest - in California - so they can get the most upside." Still, given how well the company's stock has done over the past several months, it could be an ideal time to sell, he added. Shares of Safeway, which trade on the New York Stock Exchange as SWY, have surged nearly 70% over the past 12 months. The stock added another 2.05% to finish at $35.30 on Thursday. Despite gains over the past 12 months, the company's value in terms of market capitalization has deteriorated quite a bit in recent years as it has failed to keep up with other grocers in the space. Safeway had $8.5 billion market capitalization as of Feb. 19, but its five-year high of $10.5 billion occurred on April 22, 2010. "Safeway was a national chain that had a cookie-cutter store, but they weren't really ahead of the industry on anything," Loeb said. "They cannot compete with Whole Foods (Market Inc.) and all the aggressive high-quality food stores." Safeway officials didn't return any calls. Kroger officials couldn't be reached.

Stock quotes in this article: SWY, KR 

Inside Ukraine's Economy

As unrest spreads across Ukraine, and dozens of people die or are injured in protests around its capital Kiev, the nation’s economy, not particularly strong, may rapidly crumble. The country is a large part of the region’s economy, so this deterioration will not be limited to inside its borders.

The International Monetary Fund (IMF) ranks Ukraine as the world’s 54th largest economy by gross domestic product (GDP) at $176 billion. The World Bank ranks it 51st, with GDP pegged at the same level. Its GDP is about the same size as that of Qatar and Peru.

Based on one measure, the nation is not very productive, and its population is not well paid in proportion to GDP. The IMF ranks Ukraine 109th in GDP per capita at $3,867. The World Bank ranks it in 111th. Albania and Fiji each rank slightly higher. Economists consider it a “lower middle class” nation.

The World Bank reports that Ukraine’s economy has stalled. Its GDP did not grow in 2012 and 2013. Its GDP problems are related to those of most of the European region, where the recession has lingered longer than in the balance of the world. Political problems in Ukraine make it a poor place to invest capital, according to World Bank analysis. The strength of Ukraine’s agriculture exports, mostly grain, has been the backbone of its economy. And the fundamentals of the sector are weakening. The World Bank reports:

Ukraine has tremendous agricultural potential and could play a critical role in contributing to global food security. This potential has not been fully exploited due to depressed farm incomes and a lack of modernization within the sector. The establishment of a legal framework for secure land ownership, development of an efficient registration system, and ensuring free and transparent land markets are important elements of a policy framework that could facilitate agricultural development in Ukraine.

Much of this grain goes to Russia and other large countries in the region, which makes it important to the finances and trade inside the region. The irony of Ukraine’s economic situation is that Russia is Ukraine’s primary source of energy assets, and the relationship between the two countries over energy has been poor, and even contentious. According to the CIA Factbook:

Ukraine’s dependence on Russia for energy supplies and the lack of significant structural reform have made the Ukrainian economy vulnerable to external shocks. Ukraine depends on imports to meet about three-fourths of its annual oil and natural gas requirements and 100% of its nuclear fuel needs.

Almost all experts on Ukraine’s economy point to the same threat to economic growth. With a government under siege and the possibility of prolonged political battles, Ukraine could quickly slip back into recession. Its prowess as an exporter of grain may not be enough to offset that.

Insights from the #1 China Fund

The Oberweis China Opportunities Fund is the top-ranked China-region fund for the past one- and three-year periods. Here, fund manager Jim Oberweis walks us through his investment process and highlights some current favorite stock ideas.

Steve Halpern: Joining us today is Jim Oberweis, who many of our listeners know from the Oberweis Report, a top financial advisory service focused on small-cap stocks. How are you doing, Jim?

Jim Oberweis: Great. Pleasure to be here. Thanks so much.

Steve Halpern: Now, in addition to your well-known newsletter, you're also the portfolio manager for the Oberweis China Opportunities Fund, which, not only earned Morningstar's highest five-star buy rating, but is the number one ranked China-region fund for both the past one- and three-year periods. Could you walk us through the stock selection process that led to such strong ratings?

Jim Oberweis: Sure; so, our stock selection process is quite similar to the same process we've applied in the US for the last 25 years. Effectively, we try to find smaller, high growth companies that are really on the cusp of change, typically driven by new products.

We look for companies that have a barrier to entry and a strong market position, often times within niche markets, so, what does that mean? It means our success or failure is much more predicated on our ability to pick stocks than an overall GDP. We're kind of looking for hidden gems in barrels where there are just not a lot of people looking.

We tend to focus on very, very high growth companies where plus or minus 100 basis points in GDP isn't going to drive the business one way or another, but market penetration is really the name of the game, so it's much more a, kind of, on-the-ground, bootstrap approach toward looking at individual companies rather than trying to make large macroeconomic calls.

Steve Halpern: Now, are you also focused on the valuations of those companies?

Jim Oberweis: Yeah, absolutely, so we call our process aggressive growth at a reasonable price, meaning we look at very high growth companies, but only when the valuations make sense. Now, don't get me wrong, we're willing to pay premium valuations in absolute terms, as long as the growth prospects of the company justify paying a higher price.

Steve Halpern: Now, instead of relying just on paperwork or information that's sent from China, you actually have team members on the ground who visit with companies and you, on occasion, visit directly with companies in China. How important is that direct approach to your stock selection process?

Jim Oberweis: Yeah, it's important. I mean, our approach was always we know how to pick stocks in areas where there's rapid change and high market inefficiencies. Where we have really, I think, done a great job is building out a team of folks with local culture and language experience; although, most of our team was educated at top ten MBA schools in the US.

My co-manager and my partner John Wong, MBA from Stanford, he's a Singaporean—first language is Mandarin. Two analysts with MBAs from Wharton and Columbia that are there all the time; it's a full-time job and they're based in China and really kicking the tires.

As you can appreciate, financials are a little different in China. Having a relationship, and having on-the-ground presence, and ability to go and physically look at companies and do your own due diligence, it's really a must in China.

Steve Halpern: Now, the media appears obsessed over concerns that China's growth could be slowing. Do you share that concern or do you think this overall negative sentiment is creating a longer term opportunity?

Jim Oberweis: Honestly, I think it is creating an opportunity. We have been doing this for eight years and, if you look back, there's been, really, the full gambit and spectrum, in terms of enthusiasm towards China, from anywhere from disdain when we first started, to over exuberance a few years ago, and now we're back to almost hatred of Chinese equities.

I'd much rather own Chinese equities when they're unpopular rather than when everybody loves them, because the valuations tend to much better. Remember, based on what I told you before, we're not buying the banks and the state-owned enterprises and the telecom companies that are really tied at the hip to GDP.

Page 1 | Page 2 | Next Page The expert featured in this column, James Oberweis, may or may not own positions in any investment vehicle mentioned here. The views and opinions expressed are his or her own.

Your Money: Look into tax time strategies now

The idea of myRA, a proposed starter account for retirement savings, received plenty of buzz when it was introduced by President Obama in his State of the Union address.

But the myRA won't be in place until much later this year. And some little-used retirement savings options are good to use now during tax season. Ever think of dedicating part of your tax refund to buy Series I savings bonds? Or taking a look at a saver's credit for IRA contributions?

"People should actually use the IRA," said Alicia H. Munnell, director of the Center for Retirement Research at Boston College. If someone doesn't have a 401(k) at their workplace, setting up an IRA is a good option.

MORE: Obama unveils new retirement savings plan

Munnell, who sees the myRA as a good idea, said using a tax refund to buy I Bonds is another way to easily set aside money.

Many people, she said, need to save money for retirement before they see that cash in their checking accounts, especially if they're on a tight budget. "If the money gets into their hands, there are real needs they have to spend it on," she said.

Some options for saving for retirement at tax time:

The Retirement Savings Contribution Credit or the Saver's Credit

Some low- to moderate-income taxpayers who file jointly could obtain an average tax credit of $215 on their federal income tax returns, if they qualify, and set aside money for retirement in IRAs or 401(k)s.

The maximum credit is up to $1,000 or up to $2,000 if filing jointly. Oddly, many taxpayers who could qualify do not even know about this credit, said Catherine Collinson, president for the Transamerica Center for Retirement Studies.

Fewer than one in four American workers with annual household incomes of less than $50,000 are aware of the credit, according to a survey from the nonprofit Transamerica Center.

You could take the credit if your adjusted gross income is $29,500 in 2013 or less if single, or $44,250 or less if you are head of a household! .

MORE: No need to be a hater over MyRA savings plans

The adjusted gross income can be as high as $59,000 to qualify for the credit in 2013, if married filing jointly. Income limits rise slightly for 2014.

To get the saver's credit on the 2013 return, eligible workers could still make qualifying retirement contributions until April 15 to set up a new individual retirement account or add money to an existing IRA for 2013.

If you might qualify, you need to realize that you cannot take the credit if you file a Form 1040EZ. So you'd want to file a Form 1040 or 1040A or 1040NR.

The credit is based on filing status, adjusted gross income, tax liability, and the amount contributed to qualifying retirement programs.

Single filers averaged about $128 for the credit in 2011, the most recent figures available, according to the Internal Revenue Service. Saver's credits totaling more than $1.1 billion were claimed on 6.4 million returns in tax-year 2011.

Marshall Hunt, certified public accountant and director of tax services for the Accounting Aid Society in metro Detroit, said some restrictions apply. The retirement savings credit, for example, is not available for taxpayers of any age who are full-time students or married taxpayers filing separately.

MORE: IRS has issued $64.5 billion in refunds so far

Taxpayers also must be 18 years old or older to qualify for the credit and not be claimed as a dependent on another person's return.

The credit is not refundable if you do not have a tax liability. The credit could increase your refund for taxes already paid or reduce the amount you would owe.

Dedicating part of a tax refund to buy Series I Savings Bonds

It is possible to buy Series I U.S. Savings Bonds with a portion or all of your federal tax refund for you — and for someone else, too, such as a child or grandchild.

The rest of your tax refund money could be deposited into another account — or mailed by paper check to you.

Th! e composi! te rate for Series I bonds issued Nov. 1, 2013, through April 30 is 1.38%. The fixed rate is 0.2% and an inflation adjustment is added on top of that. The fixed rate does not change for the life of the bond, but the inflation rate can and usually does change every six months.

You may use all or part of a tax refund to buy up to $5,000 in U.S. Series I Savings Bonds.

Paper savings bonds can be bought through the tax refund process in denominations of $50, $100, $200, $500, $1,000, and $5,000.

Or the taxpayer can set up an electronic TreasuryDirect account where I Bonds can be bought to the penny anywhere from $25 to $5,000 using tax refund money.

More often, of course, big tax refunds are used to buy big TVs or pay off big bills, not save big for retirement.

In 2012, as of mid-December, 36,244 taxpayers requested 174,809 savings bonds from their federal income tax refunds. The total purchase price came to $21.3 million, according to David Starck, a spokesman for the Department of the Treasury, Bureau of the Fiscal Service.

Yet buying even one savings bond, instead of just spending that refund, can build some savings. If we're going to hear more talk about saving for retirement, why not start a little extra savings now?

Contact Tompor at stompor@freepress.com

5 Best Growth Stocks To Own Right Now

McDonald's (NYSE: MCD  ) is already a household name in about 118 countries around the world. However, the stock has been under pressure lately because of dismal sales projections for the restaurant industry at large. In fact, sales at fast-food restaurants such as McDonald's are estimated to grow less than 4% over the next 10 years, according to The New York Times. Yet, despite this tough environment, McDonald's stock could prove the bears wrong, thanks to rising comps and fresh menu innovations.

Investors are "lovin it"
The stock climbed more than 1% on Monday to $99.67, after McDonald's global same-store sales for the month of May came in ahead of expectations. The fast-food giant said comps, or comparable same-store sales, grew 2.6% globally last month. Analysts expected a 1.9% gain. Additionally, both McDonald's domestic and same-store sales in Europe exceeded expectations, with an increase of 2% in Europe and 2.4% in the U.S.

Same-store sales are important because they measure sales growth at stores that have been open for more than a year.

5 Best Growth Stocks To Own Right Now: MEDIFAST INC(MED)

Medifast, Inc., through its subsidiaries, engages in the production, distribution, and sale of weight management and disease management products, and other consumable health and diet products in the United States. The company?s product lines include weight and disease management, meal replacement, and vitamins. It also operates weight control centers that offer Medifast programs for weight loss and maintenance, customized patient counseling, and inbody composition analysis. The company markets its products under the Medifast and Essential brand names, including shakes, appetite suppression shakes, women?s health shakes, diabetics shakes, joint health shakes, coronary health shakes, calorie burn drinks, calorie burn flavor infusers, antioxidant shakes, antioxidant flavor infusers, bars, crunch bars, soups, chili, oatmeal, pudding, scrambled eggs, hot cocoa, cappuccino, chai latte, iced teas, fruit drinks, pretzels, puffs, brownie, pancakes, soy crisps, crackers, and omega 3 and digestive health products. Medifast Inc. sells its products through various channels of distribution comprising Web, call center, independent health advisors, medical professionals, weight loss clinics, and direct consumer marketing supported via the phone and the Web; Take Shape for Life, a physician led network of independent health coaches; and weight control centers. The company was founded in 1980 and is headquartered in Owings Mills, Maryland.

Advisors' Opinion:

• [By Ben Levisohn]

  Shares of Nutrisystem have gained 20% to $18.05 at 1:34 p.m., while Weight Watchers (WTW) has risen 3.6% to $39.42. Medifast (MED), however, has dropped 1.9% to $24.94.

• [By Holly LaFon] ast produces, distributes and sells weight and health management products with the brand names Medifast, Take Shape for Life, Hi-Energy Weight Control Centers and Woman�� Wellbeing.

  Its return on assets in the third quarter of 2011 was 19.6%, which has been increasing in the past several years. The average return on assets for the specialty retail industry is 10.48% for the trailing 12 months.

  The company�� total assets amounted to $94 million in 2010, which increased from $62.8 million in 2009. Net income also increased to $19.6 million in 2010 from $12 million in 2009.

  Boston Beer Inc. (SAM)

  Boston Beer Inc. is the largest brewer of handcrafted beers in America. Boston Beer is a growing company that recently saw a large increase in its return on assets. It increased from 19.3% in 2010 to 29.7% in 2011, and was negative as recently as 2008. The average return on assets for the beverages industry in the trailing 12 months is 9.47%.

  In 2011, the company�� total assets increased to $272.5 million from $258.5 million in 2010. Net income increased to $66 million from $50 million.

  Alliances Resources Partners (ARLP)

  Alliance Resources Partners is a coal producer and marketer primarily in the eastern U.S. Its ROA has been increasing since 2008 and increased to 22.5% in 2011 from 21.4% in 2010. The average return on assets for the oil, gas & consumable fuels industry in the trailing 12 months is 24.47%.

  In 2011, its total assets increased to $1.7 billion from $1.1 billion in 2010. Its net income increased to $389 million from $321 million.

  Factset Research Systems Inc. (FDS)

  Factset researches global market trends and develops analytical tools for investors. Of all of GuruFocus��5-star predictable companies, it has the highest return on assets at 27%. ROA has been increasing over the past several years. The average return on assets for the software industry for the trailing 12 m

• [By Jon C. Ogg]

  Medifast Inc. (NYSE: MED) saw its stock down 5% in evening trading on Tuesday after the weight loss player had soft sales and guided expectations lower. Shares were still indicated down about 5%, but volume has not yet started.

5 Best Growth Stocks To Own Right Now: Buffalo Wild Wings Inc.(BWLD)

Buffalo Wild Wings, Inc. engages in the ownership, operation, and franchise of restaurants in the United States. The company provides quick casual and casual dining services, as well as serves bottled beers, wines, and liquor. As of July 26, 2011, it had 773 Buffalo Wild Wings locations in 45 states in the United States, as well as in Canada. The company was founded in 1982 and is headquartered in Minneapolis, Minnesota.

Advisors' Opinion:

• [By Traders Reserve]

  While the usual suspects like Chipotle (CMG) and Buffalo Wild Wings (BWLD) soared after solid earnings reports, the rest of the industry may not be so fortunate.

• [By Nickey Friedman]

  Buffalo Wild Wings (NASDAQ: BWLD  ) has an even better margin to shoot for, with its 18% restaurant margin. Though both Buffalo Wild Wings and Famous Dave's specialize in sauce-covered meat, Buffalo Wild Wings sells much more high-margin booze. It may be too tall of an order for Famous Dave's to match that margin.

Best Financial Stocks For 2014: Nordstrom Inc.(JWN)

Nordstrom, Inc., a fashion specialty retailer, offers apparel, shoes, cosmetics, and accessories for women, men, and children in the United States. It offers a selection of brand name and private label merchandise. The company sells its products through various channels, including Nordstrom full-line stores, off-price Nordstrom Rack stores, Jeffrey? boutiques, treasure & bond, and Last Chance clearance stores; and its online store, nordstrom.com, as well as through catalog. Nordstrom also provides a private label card, two Nordstrom VISA credit cards, and a debit card for Nordstrom purchases. The company?s credit and debit cards feature a shopping-based loyalty program. As of September 30, 2011, it operated 222 stores, including 117 full-line stores, 101 Nordstrom Racks, 2 Jeffrey boutiques, 1 treasure & bond store, and 1 clearance store in 30 states. The company was founded in 1901 and is based in Seattle, Washington.

Advisors' Opinion:

• [By Andrew Marder]

  The 1% has seen phenomenal income growth recently, and that's spurred growth at companies like Saks (NYSE: SKS  ) and Nordstom (NYSE: JWN  ) , both of which managed 5% increases in revenue in the last quarter.

• [By Caroline Bennett]

  Brad Smith, president and CEO of Intuit, is joining the board of directors for fashion specialty retailer Nordstrom (NYSE: JWN  ) .

  Smith brings the total number of Nordstrom directors up to 12, and has served in previous leadership positions for a number of technology-based companies. He will serve for one year, and will be subject to an annual election following his first term.

• [By Nathalie Tadena]

  Nordstrom Inc.'s(JWN) fiscal third-quarter profit slid 6.2% as the high-end retailer’s sales growth was tempered by the absence of a key sale event that was held earlier in the year, while overhead expenses jumped.

• [By Jake L'Ecuyer]

  Top Headline
  Nordstrom (NYSE: JWN) reported upbeat third-quarter net income.

  Nordstrom's quarterly net income declined to $137 million, or $0.69 per share, from $146 million, or $0.71 per share, in the year-earlier period.

5 Best Growth Stocks To Own Right Now: Intuitive Surgical Inc.(ISRG)

Intuitive Surgical, Inc. designs, manufactures, and markets da Vinci surgical systems for various surgical procedures, including urologic, gynecologic, cardiothoracic, general, and head and neck surgeries. Its da Vinci surgical system consists of a surgeon?s console or consoles, a patient-side cart, a 3-D vision system, and proprietary ?wristed? instruments. The company?s da Vinci surgical system translates the surgeon?s natural hand movements on instrument controls at the console into corresponding micro-movements of instruments positioned inside the patient through small puncture incisions, or ports. It also manufactures a range of EndoWrist instruments, which incorporate wrist joints for natural dexterity for various surgical procedures. Its EndoWrist instruments consist of forceps, scissors, electrocautery, scalpels, and other surgical tools. In addition, it sells various vision and accessory products for use in conjunction with the da Vinci Surgical System as surgical procedures are performed. The company?s accessory products include sterile drapes used to ensure a sterile field during surgery; vision products, such as replacement 3-D stereo endoscopes, camera heads, light guides, and other items. It markets its products through sales representatives in the United States, and through sales representatives and distributors in international markets. The company was founded in 1995 and is headquartered in Sunnyvale, California.

Advisors' Opinion:

• [By Brian Stoffel]

  I'm going to attempt something a little odd today, Fools. Even though Intuitive Surgical (NASDAQ: ISRG  ) makes up 6% of my real-life holdings, and I wrote just last week about why I'm holding my shares, I'm going to be giving you three reasons to consider selling the stock today.

• [By Dan Caplinger]

  Arguably, though, the worst news for MAKO came from competitor Intuitive Surgical (NASDAQ: ISRG  ) , which faces controversy over its da Vinci surgical system. The FDA recently announced it would investigate Intuitive's device in light of lawsuits filed by patients alleging injuries and deaths as well as comments from medical experts that the devices add expense without corresponding medical benefits. Although the two companies don't overlap as much as you might think in terms of medical procedures, MAKO is likely to suffer from any fallout from Intuitive's problems.

• [By Ben Levisohn]

  Yesterday, I wrote up an analyst report about Intuitive Surgical (ISRG) touting the company’s da Vinci surgical system–a report that appeared to have helped pushed the stock up 4.7%.

  One of my readers left a comment that I’ll cite here in full:

  Davinci surgeons do not scrub up for the console, so the picture choice is curious. They watched presentations and then made investment pronouncements. Yikes. The presentations likely emphasize safety to try to counter all the recent publicity. This gave these casual analysts the impression that davinci is safe. lol.

  Well, wouldn’t you know it–Bloomberg ran a story this morning with the headline, “Robot Surgery Damaging Patients Rises With Marketing.” The nearly three-thousand word article describes in detail what my reader was hinting at: Robotic surgery hasn’t been all that safe. From the Bloomberg article:

  Porter Adventist Hospital in Denver announced last year that Warren Kortz, a general surgeon on the medical staff, was the first in the Rocky Mountain region to use a technique known as robotic surgery to remove gall bladders through one incision in the belly button…

  What the hospital and�Kortz�didn�� reveal was the risk. Even as Kortz promoted robotic surgery, 10 patients he treated suffered injuries or complications between 2008 and 2011, according to an April complaint by the Colorado Medical Board. Five had arteries punctured or torn. Objects were temporarily left inside two, and others had nerve damage. One died and another needed cardiopulmonary resuscitation. The complaint charges Kortz with 14 counts of unprofessional conduct, including sometimes not advising patients on alternatives to the robot.

  Robotic surgeries are on the rise, fueled by aggressive marketing by doctors, hospitals and�Intuitive Surgical Inc., which manufactures the $1.5 million robot. Advertising on hospital and doctor websites, YouTube vide

• [By Monica Gerson]

  Luna Innovations (NASDAQ: LUNA) jumped 95.45% to $2.58 as the company announced its plans to sell its shape-sensing technology to Intuitive Surgical (NASDAQ: ISRG).

5 Best Growth Stocks To Own Right Now: TrueBlue Inc.(TBI)

TrueBlue, Inc. provides temporary blue-collar staffing services in the United States. It supplies on demand general labor to various industries under the Labor Ready brand; skilled labor to manufacturing and logistics industries under the Spartan Staffing brand; and trades people for commercial, industrial, and residential construction, and building and plant maintenance industries under the CLP Resources brand. The company also provides mechanics and technicians to the aviation maintenance, repair and overhaul, aerospace manufacturing, and assembly industries, as well as to other transportation industries under the Plane Techs brand; and temporary drivers to the transportation and distribution industries under the Centerline brand. It primarily serves small and medium-size businesses. The company was formerly known as Labor Ready, Inc. and changed its name to TrueBlue, Inc. in December 2007. TrueBlue, Inc. was founded in 1985 and is headquartered in Tacoma, Washington.

Advisors' Opinion:

• [By Jonathan Yates]

  For those looking to invest in real estate stocks, highly recommended is the Dr. Housing Bubble blog. In a recent posting, the "Dr." pointed out that there was a "Lost Generation" when it came to household income. That has not happened for those investing in staffing industry stocks such as Paychex (NASDAQ: PAYX), Robert Half International (NYSE: RHI), TrueBlue, Inc. (NYSE: TBI), and Labor SMART (OTCBB: LTNC).

• [By idahansen]

  The entire demand labor industry should do well as the US Department of Labor just reported that 169,000 more jobs were added to the American economy. The more work there is, the more demand there is for the services of staffing solutions firms such as Labor SMART, Paychex (NASDAQ: PAYX), TrueBlue (NYSE: TBI), and Robert Half International (NYSE: RHI).

• [By Jonathan Yates]

  Even though the stock market rallied on Federal Reserve Chairman Ben Bernanke's remarks with the Dow Jones Industrial Average (NYSE: DIA) and Standard & Poor's 500 Index (NYSE: SPY) surging, the long term winners will be stocks in the staffing industry such as Paychex(NASDAQ: PAYX), TrueBlue (NYSE: TBI), Robert Half (NYSE: RHI), and Labor SMART (OTCBB: LTNC).

• [By Travis Hoium]

  What: Shares of staffing agency TrueBlue (NYSE: TBI  ) jumped 10% today after the company reported earnings.

  So what: Revenue jumped 19%, to $422.3 million, and beat estimates of $420.2 million from Wall Street. Adjusted earnings per share were also up 19%, to $0.31, outpacing estimates by $0.05.�

5 Best Growth Stocks To Own Right Now: Crocs Inc.(CROX)

Crocs, Inc. and its subsidiaries engage in the design, development, manufacture, marketing, and distribution of footwear, apparel, and accessories for men, women, and children. The company primarily offers casual and athletic shoes, and shoe charms. It also designs and sells a range of footwear and accessories that utilize its proprietary closed cell-resin, called Croslite. The company?s footwear products include boots, sandals, sneakers, mules, and flats. In addition, it provides footwear products for the hospital, restaurant, hotel, and hospitality markets, as well as general foot care and diabetic-needs markets. Further, the company offers leather and ethylene vinyl acetate based footwear, sandals, and printed apparels principally for the beach, adventure, and action sports markets; and accessories comprising snap-on charms. The company sells its products through the United States and international retailers and distributors, as well as directly to end-user consumers th rough its company-operated retail stores, outlets, kiosks, and Web stores primarily under the Crocs Work, Crocs Rx, Jibbitz, Ocean Minded, and YOU by Crocs brand names. As of December 31, 2010, it operated 164 retail kiosks located in malls and other high foot traffic areas; 138 retail stores; 76 outlet stores; and 46 Web stores. Crocs, Inc. operates in the Americas, Europe, and Asia. The company was formerly known as Western Brands, LLC and changed its name to Crocs, Inc. in January 2005. Crocs, Inc. was founded in 1999 and is headquartered in Niwot, Colorado.

Advisors' Opinion:

• [By William L. Watts]

  Shares of Crocs Inc. (CROX) �rose nearly 17% after Chief Financial Officer Jeff Lasher said in an interview that Blackstone Group LP (BX) �will invest $200 million in the shoe company and that Chief Executive John McCarvel will retire by late April.

• [By Ben Levisohn]

  Crocs (CROX) has dropped 5.5% to $12.93 after it was cut to Neutral from Overweight at Piper Jaffray.

  CF Industries�(CF) has gained 3.6% to $$217.51 after it sold its phosphate business to�Mosaic�(MOS) for $1.4 billion. Mosaic edged up 0.1% to $45.98.

• [By Ben Eisen and Saumya Vaishampayan]

  Crocs Inc. (CROX) �rose 2.2%. The shoe company was said to be in discussions with buyout firms, including Blackstone Group LP, according to Bloomberg, which cited anonymous sources. The talks appeared to be focused on the firm taking a minority stake in Crocs via which Blackstone could help map out a turnaround strategy.

5 Best Growth Stocks To Own Right Now: Eastern Insurance Holdings Inc.(EIHI)

Eastern Insurance Holdings, Inc., through its subsidiaries, provides workers compensation insurance and reinsurance products in the United States. The company?s Workers Compensation Insurance segment provides traditional workers compensation insurance coverage products, including guaranteed cost policies, policyholder dividend policies, retrospectively-rated policies, deductible policies, and alternative market products to employers. This segment distributes its workers? compensation products and services through its independent insurance agents primarily in Pennsylvania, Delaware, North Carolina, Maryland, Indiana, and Virginia. Its Segregated Portfolio Cell Reinsurance segment offers alternative market workers compensation solutions comprising program design, fronting, claims administration, risk management, segregated portfolio cell rental, asset management, and segregated portfolio management services to individual companies, groups, and associations. Eastern Insurance Holdings, Inc. is headquartered in Lancaster, Pennsylvania.

Advisors' Opinion:

• [By Lauren Pollock]

  ProAssurance Corp.(PRA) agreed to acquire Eastern Insurance Holdings Inc.(EIHI) for about $205 million, expanding the insurance company’s casualty insurance offerings. Eastern Insurance is a domestic casualty insurance group specializing in workers’ compensation products and services, among other things. ProAssurance plans to pay $24.50 in cash for each outstanding Eastern share, a 16% premium over Monday’s closing price.

5 Best Growth Stocks To Own Right Now: Thoratec Corporation(THOR)

Thoratec Corporation engages in the development, manufacture, and marketing of proprietary medical devices used for circulatory support. The company?s primary product lines include ventricular assist devices, such as HeartMate II, an implantable left ventricular assist device consisting of a rotary blood pump to provide intermediate and long-term mechanical circulatory support (MCS); and HeartMate XVE, an implantable and pulsatile left ventricular assist device for intermediate and longer-term MCS. Its ventricular assist devices also comprise Paracorporeal Ventricular Assist Device, an external pulsatile ventricular assist device, which provides left, right, and biventricular MCS approved for bridge-to-transplantation (BTT), including home discharge, and post-cardiotomy myocardial recovery; and Implantable Ventricular Assist Device, an implantable and pulsatile ventricular assist device designed to provide left, right, and biventricular MCS approved for BTT comprising hom e discharge, and post-cardiotomy myocardial recovery. The company also provides CentriMag, an extracorporeal full-flow acute surgical support platform that offers support up to 30 days for cardiac and respiratory failure. In addition, it offers PediMag and PediVAS extracorporeal full-flow acute surgical support platforms designed to provide acute surgical support to pediatric patients. The company sells its products through direct sales force in the United States, as well as through a network of distributors internationally. Thoratec Corporation was founded in 1976 and is headquartered in Pleasanton, California.

Advisors' Opinion:

• [By Todd Campbell]

  Competing for heart pump market share
  Abiomed's products provide circulatory support for up to six hours and are designed for use in cardiac cath labs or during heart surgery, but competitors Thoratec (NASDAQ: THOR  ) and Heartware (NASDAQ: HTWR  ) target the intermediate- and long-term-use market instead.

• [By Brian Pacampara]

  What: Shares of medical device company Thoratec (NASDAQ: THOR  ) sank 12% today after its quarterly results missed Wall Street expectations. �

5 Best Growth Stocks To Own Right Now: Waste Management Inc.(WM)

Waste Management, Inc., through its subsidiaries, provides waste management services to residential, commercial, industrial, and municipal customers in North America. It offers collection, transfer, recycling, and disposal services. The company also owns, develops, and operates waste-to-energy and landfill gas-to-energy facilities in the United States. Its collection services involves in picking up and transporting waste and recyclable materials from where it was generated to a transfer station, material recovery facility, or disposal site; and recycling operations include collection and materials processing, plastics materials recycling, and commodities recycling. In addition, it provides recycling brokerage, which includes managing the marketing of recyclable materials for third parties; and electronic recycling services, such as collection, sorting, and disassembling of discarded computers, communications equipment, and other electronic equipment. Further, the company e ngages in renting and servicing portable restroom facilities to municipalities and commercial customers under the Port-o-Let name; and involves in landfill gas-to-energy operations comprising recovering and processing the methane gas produced naturally by landfills into a renewable energy source, as well as provides street and parking lot sweeping services. Additionally, it offers portable self-storage, fluorescent lamp recycling, and medical waste services for healthcare facilities, pharmacies, and individuals, as well as provides services on behalf of third parties to construct waste facilities. The company was formerly known as USA Waste Services, Inc. and changed its name to Waste Management, Inc. in 1998. Waste Management, Inc. was incorporated in 1987 and is based in Houston, Texas.

Advisors' Opinion:

• [By Selena Maranjian]

  It can be good, though, with kids, to add a few individual company stocks to the mix, to keep things more interesting. A solid, dividend-paying blue chip such as Waste Management (NYSE: WM  ) can be a smart choice, in part because it's relatively easy to understand. It's reliable because garbage collection is likely to be in great demand for a long time, and the company has become a major recycler, too, even generating energy from some waste.

3 Dividend Stocks to Sell Before It’s Too Late

Popular Posts: 4 Monthly Dividend Stocks for a Steady Diet of Income3 Super-Safe Preferred Stocks Providing Plentiful PayoutsNaked Puts: Make a Grand This Month With Options Recent Posts: 3 Dividend Stocks to Sell Before It's Too Late Naked Puts: Make a Grand This Month With Options Stick With Used Dealers When Shopping for Car Stocks View All Posts

Bond yields have been under pressure for quite some time, which has put pressure on the many investors who rely on that regular fixed income to keep them afloat.

These investors had relied for a long time on the safety of bonds — little price volatility, the ability to choose from all types of bond investments according to one's risk tolerance within a universe of low-risk choices, and regular interest payments. Being pushed out onto the risk curve means these investors have moved into dividends stocks.

That's just fine, presuming the dividend stocks pay out reliably. However, even the most reliable dividend stocks still expose that investor to capital gain risk, something income investors usually didn't fret much about. Here are three dividend stocks who I believe are at serious risk, which would vastly offset any kind of benefit from their dividends.

Dividend Stocks to Sell: WAG Stock

Walgreen Co. (WAG) is not in danger of going bankrupt. WAG stock has plenty of cash, it turns a sizable profit, and it generates plenty of free cash flow. So what's the big deal? Why am I suggesting you sell this stalwart among dividend stocks? Because drugstores like WAG stock are what I call a "sunset industry".

This isn't some growing new industry set to take the world further into the 21st century. It's an old concept that hasn't innovated, won't innovate, and will slowly but surely die out over this century. When I walk into a Walgreens, I see a miniature Target (TGT), a more expensive Dollar Tree (DLTR), and a provider of prescriptions in a world where everything is becoming mail order.

Even if you say I'm crazy and that people will always use drug stores, I'll say you are crazy for paying 18.5 times estimates on a company growing FY14 EPS by only 11%. If you need a 2.1% yield that badly, I refer you to AT&T (T), where you can buy an overvalued stock with better FCF and a dividend with a much higher 5.7% yield.

Dividend Stocks to Sell: PG Stock

Procter & Gamble (PG) is perhaps the king of defensive stocks. But if that's what you consider "defensive," I'd like to gift you this hand-grenade with its missing pin. P&G stock is old news. It is as stagnant a company as you are likely to find in the large-cap arena.

Things are so bad that P&G stock has introduced a lower-end version of Tide detergent. How can you provide a lower end version of laundry detergent? Tide sales fell 9% last year, and yet how can P&G expect that customers won't trade down to whatever this low-rent version is, and cut revenue even more?

Moreover, the company is exposed to currency problems beyond its stagnating core business, and it just cut earnings guidance from a 5-7% EPS gain to 3-5%. P&G is a company in paralysis. Once again, we have P&G stock selling for 18.5 times estimates, but this is on only 5% growth. You can find better dividend stocks with that 3.1% yield.

Dividend Stocks to Sell: MMM Stock

As for 3M (MMM), I actually love this company. It's a great conglomerate that operates in many sectors, performs well, has been around forever, and is seeing gains in good places. While it struggles in emerging markets, it came in with a 4.5% organic growth in the EMEA region.

Operating income recently came in with a 9.4% increase. However, MMM stock's Latin American market is expected to see an 8% decline in revenue. I'm objecting to 2.6% yield strictly on the basis of valuation. It trades on 17 times earnings when EPS is slated to grow 11.5%.

So, whether you’re looking for yield or protection, avoid these stocks. They may be dividend stocks, but you can easily find better picks for your portfolio.

As of this writing, Lawrence Meyers did not hold a position in any of the aforementioned securities. He is president of PDL Broker, Inc., which brokers financing, strategic investments and distressed asset purchases between private equity firms and businesses. He also has written two books and blogs about public policy, journalistic integrity, popular culture, and world affairs. Contact him at pdlcapital66@gmail.com and follow his tweets @ichabodscranium.

Twitter Inc (TWTR) Earnings CSI – Shortsighted Wall Street Reaction?

So, Twitter Inc (NYSE:TWTR) got walloped because Wall Street is concerned with user growth. How fleeting beauty can be for the share-beholder. Now the 140 character, social site's nose is broken and bloody. Is it time for investors to consider buying the battered stock or run the other way.

Let's examine the financial statements and charts to mark out the pros and cons.

The first thing we notice is the enormous jump in costs on the income statement, most of which could payoff in the long run. Revenue grew by 116%; meanwhile, the "bad" costs such as cost of revenue increased by 205.14% and general and administrative expenses skyrocketed 350.88%. Overall, the two accounted for 74.25% of revenue for 2013 versus 46.24% in 2012.

[Related -Twitter Inc (TWTR): Should You Buy It?]

Despite cost of revenue and general and administrative expenses outrunning sales, had management been able to keep the pair in-line with revenue growth, it would have only added $0.13 to the bottom-line; although, a $0.16 bullish surprise would have looked better than $0.03 surprise reported.

Now on to the "good" costs: research & development (R&D) and sales & marketing. Unless management misfires on both, investors should eventually reap rewards from these line items. We noticed a similar pattern in Facebook Inc's (NASDAQ:FB) initial earnings report. At the time, iStock forecasted better days ahead of the king of social sites while the rest of the world was dumping on FB. Facebook was trading around $23 when we wrote Facebook (FB) Earnings - What The Market Is Ignoring About It.

[Related -Twitter Inc (TWTR) Q4 Earnings Preview: What To Watch?]

Similar to FB, Twitter's sales and marketing went into orbit, vertically climbing 515.98% year-over-year (YoY). While that's staggering, R&D went all moon shot, up 878.8% YoY.

Once again, had management left the debit card home once in a while and increased R&D and sales and marketing at the same pace as revenue, it would have added $0.78 to earnings. In total, less aggressive spending on the good and bad costs add up to $0.91 per share. Imagine Wall Street's reaction had Twitter posted a bullish surprise of $0.94 – do you think the stock would have tanked nearly 25%? We don't - no matter if nobody new signed up.

As for where the slide might come to an end, $45 is a firm level of support as the stock finished its first day of trading at $44.90. If $45ish has holes in the safety net, then $39-$40 could come into play. From our experience, the initial waterfall usually accounts for 90% of earnings driven selloffs, which means TWTR probably drifts lower for a little while, catches a bottom (most likely intra-day), and then reverses higher.

If the stock continues to backpedal, you'll know that bulls are ready to take charge again when the stock closes above $51ish. On the other hand, our experience says not to trust an immediate U-turn.

Overall: Twitter Inc's (TWTR) announcement shows management is committed growing in the future, which should ease the worries of user growth. Additionally, the income statement reveals plenty of wiggle room for the executive team to produce explosive earnings surprises in upcoming quarterly checkups, provided they can temper the urge to splurge. 

Health law mandate for some employers delayed

WASHINGTON — Businesses with more than 50 employees but fewer than 100 will have an extra year to phase in coverage of employees who work more than 30 hours a week, Treasury Department officials announced Monday.

Businesses with more than 100 employers will be subject to employee-coverage rules under the Affordable Care Act beginning in January 2015. The mandate to provide insurance had already been delayed one year.

Volunteer firefighters, part-time teachers and adjunct professors who teach less than 15 hours a week will not be counted as full-time employees, according to a rule released Monday.

STORY: Obama administration to delay part of Affordable Care Act

"While about 96% of employers are not subject to the employer responsibility provision, for those employers that are, we will continue to make the compliance process simpler and easier to navigate," said Assistant Secretary for Tax Policy Mark J. Mazur. "Today's final regulations phase in the standards to ensure that larger employers either offer quality, affordable coverage or make an employer responsibility payment starting in 2015 to help offset the cost to taxpayers of coverage or subsidies to their employees."

The delay announced last July fueled calls from the law's Republican opponents that the entire law needed to be delayed or repealed, which President Obama and congressional Democrats refused to do. The federal and state exchanges where people can buy health insurance opened on time Oct. 1 but were immediately plagued by outages and glitches that slowed enrollment to a crawl until the site was fixed Nov. 30. Since then, more than 3 million have bought insurance through the exchanges.

The new rule gives employers more time to expand coverage or to provide health insurance if they have never done so before. Those who do not have insurance through their employers may sign up for health insurance at www.HealthCare.gov. Most Americans who make less than 400% of the federal poverty level, or $94,200 for ! a family of four, are eligible for subsidies to help pay for insurance.

STORY: Another HealthCare.gov delay announced

Businesses with more than 100 employees must offer coverage to 70% of their full-time employees in 2015 and 95% of their employees in 2016.

Employers will need to certify on a form that they did not drop employees to avoid providing coverage.

The change came after input from employers and members of Congress. The new rule determines that adjunct professors should be based on an hour and 15 minutes of preparation outside the classroom for every hour spent teaching in the classroom and that teachers working full-time during the school year do not count as part-time employees if they have the summer off.

Businesses with more than 50 employees would have paid a fee of $2,000 per uninsured employee after the first 30 employees, as well as a fee for employees who receive a subsidy through the exchanges. This comes at a cost to the government: The Congressional Budget Office expected such penalties to bring in $4 billion in 2014, and the new delay causes two years' worth of lost funds.

Companies with fewer than 50 full-time workers are already exempt from the rule.

Follow @kellyskennedy on Twitter.

Three Taiwanese Bubble Tea Chains Racing For California

Bubble tea may be commonplace in Asia, but the success of various independent shops and chains in California could one day be defined by service and variety. While chains such as Lollicup Coffee & Tea and Tapioca Express Inc. were founded in southern California and are working on expanding globally, the state has seen a dozen others come and go. Here are three Taiwanese chains that have already established themselves in Asia but are worth watching in the states:

Gongcha

Gongcha was founded in Kaohsiung, Taiwan in 2006 and has more than 300 stores across Asia (Taiwan, Singapore, Kong, Singapore, China, Malaysia, Indonesia, Korea, Philippines, Macau and Thailand), Australia and Canada. It opened its first location in Fremont in August.

ShareTea

ShareTea was founded in 1992 by Cheng Kai-Lung. ShareTea is considerably smaller than its components with just over 180 locations.

CoCo Fresh Tea & Juice

CoCo Fresh Tea & Juice was founded by Hung Chao-shui in 1997. The leading Taiwanese tea brand has over 1,000 branches in China, Taiwan, Hong Kong, Malaysia, and opened its first U.S. location in 2011.

Of the three chains, Gongcha particularly provided a test report on its Facebook page that showed its tapioca balls were safe, alluding to a 2011 scandal that broke out in Taiwan when many drinks were found to contain DEHP, a chemical additive used to change the appearance of food and drinks.

Twitter Analyst Downgrade Tries Calling Another Top

Twitter Inc. (NYSE: TWTR) keeps turning its doubters into mourners as the stock continues rising and rising. The social media and microblogging site managed a gain of almost 5% on Thursday to close at $73.31. This was the highest close ever, and the new high on an intraday basis is $74.73. One analyst is now saying that enough is enough.

The firm Macquarie downgraded Twitter’s stock to Underperform from an already cautious Neutral rating. The reason: no justification for the recent price surge. Twitter shares are up about 30% over the past week or so, and shares are up about 60% since its initial public offering (IPO).

What was amazing about Twitter’s trading on Thursday was that trading volume hit a whopping 82 million shares. The prior record stands at 117 million shares, but that was the day of the IPO. Maybe Santa Claus sent Twitter shares to all the really good kids or something.

Twitter’s stock valuation has been difficult or impossible for Wall Street analysts to deal with. Anyone with a CFA designation who thought that 50 times revenue after the IPO was too much now gets to consider how to evaluate the stock with a market cap of almost $40 billion and valuation of almost 100 times trailing revenue. Twitter now trades at roughly 62 times expected 2013 revenues and about 35 times expected 2014 revenues. Another negative is that the company is expected to lose money in 2013 and in 2014.

On another note, the December 13 short interest was 23.67 million shares. That short interest may go higher, provided two issues: 1) the cost of borrowing has not risen too high and 2) the short squeeze pain has not wiped out those betting against it.

Buyback Bets Span the Globe

David Fried, whose Buyback Premium Portfolio is beating the S&P 500 by more than 92% since its inception in 2000, has added two global plays to his buy list. Here's the latest from The Buyback Letter.

Brookfield Infrastructure Partners (BIP) owns and operates a cornucopia of infrastructure—premier utilities, transport, and energy in North and South America, Australia, and Europe.

Brookfield has one of the world's largest export terminals, more than 6,150 miles of transmission lines in North and South America and more than 2.5 million electricity and natural gas connections.

Analysts say Brookfield is investing in assets that offer large levels of downside protection and very little risk of competitive challenge, while also having minimal expense to maintain or support over time. They also applaud it for solid management and an unassailable market position.

BIP has returned more than 287% over the past five years. Even if you're not interested in investing directly in renewable energy, Brookfield offers a way to hook into the expansion.

The company has reduced shares outstanding by 18.90% over the past 12 months.

Meanwnhile, Rio Tinto PLC (RIO), the world's second largest miner by market capitalization, is a global mining and metals company, focusing on iron ore, aluminum, and copper mining, with operations in more than 40 countries.

It is headquartered in the UK. More than 71,000 people work in more than 40 countries across six continents, heavily in Australia and North America, and also significantly in Asia, Europe, Africa, and South America.

Rio Tinto has some of the most accessible and politically subdued mines in the world, with many of its operations being based in relatively stable countries, such as Australia. This stability is prized by analysts.

RIO has also gained notoriety by replacing iron ore train drivers with computers, to further the company's efforts to trim staff.

Over the past year or so, the company has eliminated more than 2,000 positions—a big savings, particularly since the mining industry's upswing led to salary inflation.

Management has reduced shares outstanding by a whopping 25.26% in the last 12 months.

Subscribe to The Buyback Letter here…

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Costco Wholesale Corporation (NASDAQ:COST) Q1 Earnings Preview: Membership Fees Or Bust

Costco Wholesale Corporation (NASDAQ:COST) plans to release its operating results for the first quarter (12 weeks) of fiscal 2014 ended November 24, 2013, on December 11, 2013. A conference call to discuss these results is scheduled for 8:00 a.m. (PT) that day and will be available via webcast on www.costco.com.

Wall Street anticipates that the discount wholesaler will earn $1.02 per share for the quarter. iStock expects COST to miss Wall Street's consensus number. The iEstimate is $1.01.

Costco currently operates 648 warehouses, including 461 in the United States and Puerto Rico, 87 in Canada, 33 in Mexico, 25 in the United Kingdom, 18 in Japan, 10 in Taiwan, nine in Korea and five in Australia. Costco also operates electronic commerce web sites in the U.S., Canada, the United Kingdom and Mexico.

[Related -Amazon.com, Inc. (AMZN): Forget Drones: Here's Why Amazon's A 'Sell']

Since Costco pre-releases sales figures, we'll work backwards to see where revenue and EPS are likely to come in on Wednesday Morning.

On December 5, 2013, management announced, "For the twelve-week first quarter ended November 24, 2013, the Company reported net sales of $24.47 billion, an increase of five percent compared to $23.20 billion in the twelve-week first quarter of fiscal year 2013 ended November 25, 2012."

The announcement leaves out membership fees. The warehouse club business model is based on ultra-low mark-up on products, with the majority of profits generated from membership fees charged to customers. Costco derives more than 70 percent of operating income from membership fees received from its 37 million plus paid-up members.

[Related -Record Sales For Wal-Mart Stores, Inc. (NYSE:WMT) And Three Stocks That Could Benefit]

Investors will focus on new membership signups, membership renewal rates and rise in number of executive members. Membership metrics are critical because as long as people keep paying for annual membership, they're going to shop at Costco.

The membership factor gives Costco an edge over Target (NYSE:TGT) and Wal-Mart (NYSE:WMT). For the fourth quarter ended Sept.1, Costco's membership fees rose to $716 million from $$694 million a year-ago.

We project membership fees to be in the neighborhood of $720 million, which puts total revenue at $25.19 billion.  The Street's consensus revenue estimate is $25.34 billion with a range of $25 billion to $26.66.

If net margin remains the same and our revenue estimate are close to correct, then EPS could come in at $0.99, which would mean a miss of $0.03.

It would not be too surprising if the NASDAQ 100 member falls short of the top and bottom lines consensus estimates as it's been a tough quarter for retailers. Plus, cost missed the mark last quarter; however, the stock price was essentially unchanged during the three-days surrounding the quarterly checkup.

Bearish EPS surprises have been a rarity for the wholesale-giant. Management has produced only four less than expected results in the last 16 quarters but never in the December announcement. So, a miss tomorrow would be a first.

Despite a potential miss, Costco continues to provide one of the most consistent traffic in the retail space and its top-line performance was one of the best in retail during a challenging period with strength domestically and internationally.

The company's solid traffic and membership renewal rates are unique within a space wrought with uncertainty of late. The uniqueness could help Costco post a solid quarterly print. However, investors could focus on forex fluctuations, volatile gas prices, gross profit and SG&A margins.

The Street will look for company's international expansion plans. It expects to open 36 new warehouse locations during the current fiscal year, and half of them would be in international markets.

In addition, the retailer's online business would be a key focus. Costco's online sales represent only 2 percent of its overall revenues, suggesting that the! re is a e! normous room for improvement given the optimistic outlook for the U.S. online retail industry. During the last two quarters of fiscal 2013, the company's e-commerce revenues rose by 20 percent and 15 percent, respectively.

Overall: Earnings announcements have been tough on many retailers this quarter. Not because EPS have fallen short of Wall Street's expectations, but because forward guidance has been soft and lower than expected.

If Costco Wholesale Corporation (NASDAQ:COST) misses, but provides in-line guidance, it could be enough to ward of sellers. 

3 Super-Safe Preferred Stocks Providing Plentiful Payouts

Popular Posts: 4 Stocks to Buy on a Crash Sale4 Monthly Dividend Stocks for a Steady Diet of Income3 Strategies for Hedging Against a Market Crash Recent Posts: 3 Super-Safe Preferred Stocks Providing Plentiful Payouts 2 Big-Time Naked Puts: AAPL, PCLN 4 Monthly Dividend Stocks for a Steady Diet of Income View All Posts

Preferred stocks are the unsung heroes of dividend yield.

Preferreds only really started to get attention when bond yields cratered, sending dividend investors on the hunt for other sources of fixed income. And I have to admit, when I found preferred stocks, I fell in love.

After all, preferred stocks have many of the advantages of bonds in that they trade in very tight range, they pay a regular dividend, and they are higher up in the capital stack than equity. In addition, if a company is forced to reduce dividends, it must first kill the dividend to the common stock before the preferred stock.

Before the picks, a few educational notes: Preferred stocks you’ll want to avoid are those whose companies have already cut common dividends, indicating the company is struggling with its cash position and income generation. You’ll also want to avoid preferred stocks trading substantially above par, or the price they were originally offered at. Most preferred stocks are "callable,” which means the company can pay the issuing price for shares after a certain date. You don't want to buy a preferred stock at $28 and have it called at $25. It's OK to pay a slight premium, but not too much.

Now, onto those preferred stocks to buy:

Preferred Stocks to Buy: Ashford Hospitality Trust (AHT) Series D 8.45% Cumulative

Dividend Yield: 8.45%

Of all the preferred stocks out there, I've written most frequently about Ashford Hospitality Trust (AHT) Series D 8.45% preferred stock.

I love this hotel REIT and its stock for many reasons. Ashford Hospitality Trust is extremely well-managed, boasting management that has been in the hotel business for 24 years. Leadership has shown deftness and creativity with the company's financing over the years.

During the financial crisis, when virtually every other hotel REIT cut both common and preferred dividends, Ashford never cut its preferred stock. It negotiated loan maturities out several years. It purchased interest rate derivatives called "flooridors" that generated additional income while the hotel business was in the toilet.

I've owned these shares for quite some time, and I suggest owning them for the long term. Ashford’s D shares trade just slightly over their $25 issuing price and yield a very attractive 8.45%.

(Note: Tickers for many preferred stocks vary based on the research or trading platform you are using.)

Preferred Stocks to Buy: Public Storage Series T

Dividend Yield: 6.58%

I also like both Public Storage (PSA) and its Series T preferred stock.

As a result of the financial crisis, many people lost their homes. What happens when people get evicted from a house? They downsize. That's one reason we've seen apartment REIT stock prices appreciate, but that's also why Public Storage has done so well. You can't fit a household's worth of stuff into an apartment, so you rent storage for all those extra-large sofas. Housing remains troubled, and with people increasingly being moved into part-time jobs or leaving the workforce, this overall secular trend is continuing.

Public Storage has 10 different series of preferred stock, but I like the Series T because it trades at $21.83, which is more than 12% below par. I don't see any reason for this discount, and it also boosts the 5.75% dividend (at par) to 6.58% at the current price.

Preferred Stocks to Buy: PowerShares Preferred Portfolio (PGX)

Dividend Yield: 6.6%

Of course, if you're worried about picking the right preferred stock, you can always go with an ETF, which offers diversification.

There are a few preferred ETFs floating around, but one I favor is the  PowerShares Preferred Portfolio (PGX). Most preferred ETFs are heavily weighted toward financials, and this is no exception. However, I'm not as concerned as I used to be about financials, and this ETF is globally diversified, which puts me a little more at ease. PGX currently yields 6.6%.

As of this writing, Lawrence Meyers held AHT Preferred D series shares. He is president of PDL Broker, Inc., which brokers financing, strategic investments and distressed asset purchases between private equity firms and businesses. He also has written two books and blogs about public policy, journalistic integrity, popular culture, and world affairs. Contact him at pdlcapital66@gmail.com and follow his tweets @ichabodscranium.

5 Ambitious Plans From AMZN: Which Will Work?

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Whether you love Amazon (AMZN) or hate it, you at least have to admire its willingness to try new things. See, even if only half of its proverbial spaghetti sticks to the wall, that’s enough success to make all the company’s crazy ideas — taken as a whole — rewarding for AMZN stock owners. Case in point: Despite poor reviews immediately following its debut in 2011, the Kindle Fire has been a big success for Amazon … not necessarily as a competitor to the iPad, but in its own right as a platform from which Amazon can sell digital content. With that being said, each of the most recent initiatives from Amazon is en route to a pretty predictable outcome. Here’s a quick look at those ideas — and my take on what investors should expect.

Amazon Gaming Console

It’s not actually been confirmed by Amazon yet, but it’s noticeably not been denied either — the digital content giant is rumored to be developing an Android-based video-gaming console that’ll sit right next to people’s television sets. It’s unlikely that Amazon will dethrone industry leaders Microsoft (MSFT) or Sony (SNE) on this front, makers of the Xbox and Playstation gaming consoles, respectively. For that reason, the premise has been met with some criticism. One of the biggest criticisms validly points out that most tablet-based games are touch-screen games, and won’t function as needed on a television. On the other hand, the point isn’t to dominate the gaming landscape. This is about Amazon taking some technologies that already exist (and some technologies it already owns) and repackaging them in a box that permanently sits in consumers’ living rooms. See, the gaming system will also play on-demand videos available via Amazon Instant Video, and will almost certainly include a shopping app that browses the Amazon.com site. Even if Amazon only sells a few million of these machines, the cost will be minimal, yet the positive impact for AMZN stock owners will be noticeable.

Amazon Payments

Move over PayPal: There’s a new e-commerce middleman coming to town. In October, Amazon unveiled “Login and Pay With Amazon,” which allows shoppers to use their Amazon account to facilitate a payment to an online retailer … even for transactions not being made at Amazon.com. Like PayPal, the vendor must also have an established “Login and Pay” payment-receipt account in order to receive that payment. With an established name like Amazon, however, it’s not like those e-tailers are going balk at the new payment venue. But what about PayPal’s dominance in this space? The eBay (EBAY) subsidiary owns about half of the online-payment industry’s market share, and it doesn’t plan on rolling over. Amazon doesn’t have to take this market by storm right away. The cost is relatively minimal, and incremental, and third-party sellers are going to do the marketing work. In other words, the company has nothing to lose here, and everything to gain. And even a small slice of the market would be a big victory for the value of AMZN stock. The online payment industry is on pace to transact $2.7 trillion worth of commerce next year.

Amazon Kindle Checkout

Anything that makes the Kindle more useful to consumers makes it more marketable. Likewise, anything that puts the Amazon tablet in a user’s hand makes the Kindle’s owner more likely to buy digital content at Amazon.com. From that perspective, the recent announcement of an Amazon-supported point-of-sale/checkout system that allows a retailer to scan a Kindle device seems like a brilliant idea. There’s just one problem. If Google (GOOG) Wallet, Apple (AAPL) Passbook, Isis, Square, PayPal, Clinkle, and a whole slew of other similar options aren’t getting any significant traction, the odds of Amazon making a meaningful dent are slim. And, even a small dent in the POS market wouldn’t give AMZN stock a measurable boost.

Amazon Delivery Drones

Let’s get this straight. Amazon wants to build a fleet of unmanned mini-delivery helicopters toting goods from warehouses, dropping those goods at shoppers’ front doors, whizzing back to Amazon’s fulfillment center, navigating around buildings and dodging power lines and trees the whole time, spooking the neighbor’s dog, with the company praying the whole time that none of the airborne shuttles malfunctions in mid-flight and crashes into a busy freeway? Yeah, bad idea. It’s not going to happen, and that’s a good thing. But, if for some reason the idea wasn’t just some publicity stunt staged to spark some sales in early December, then anyone who owns AMZN stock needs to consider selling their position once that first drone takes off. One bad landing in the wrong place — on someone’s head, perhaps? – poses a huge financial liability for the company … and it would only be a matter of time before such an accident happened.

Amazon Smartphones

While the foray into tablets and the pending foray into gaming consoles are savvy, fruitful ideas, it’s not like every consumer technology Amazon is working on is a surefire winner. Smartphones, for instance, may be an ill-advised business venture. Odds are good that any smartphone Amazon manufactures will be a quality phone, capable of competing with the iPhone from Apple and Samsung’s Android-based Galaxy line. But the phone business isn’t just about building a quality device. The bulk of new smartphone sales are performed by wireless carriers like Verizon (VZ) or AT&T (T) … partners that Amazon doesn’t have, and partners that may not be looking to further complicate their more-than-adequate phone selection with yet another manufacturer (an unproven one at that). If the carriers aren’t going to get excited about it, then AMZN stockholders probably shouldn’t get excited about it either. As of this writing, James Brumley did not hold a position in any of the aforementioned securities.

If companies shared their cash with employees

Excluding banks, the Standard and Poor's 500 stock index has 216 companies that are sitting on $1 billion or more in cash or short-term equivalents. If each of those took just 5% of its cash hoard and gave it to employees, each employee would get more than $3,000 -- but don't hold your breath.

It's no secret that many companies are sitting on enormous amount of cash – a total of $1.25 trillion in companies in the S&P 500, according to Standard and Poor's Capital IQ. That number, incidentally, eliminates banks and other financial services companies, which are highly cash-intensive.

The five companies with the largest cash holdings – Microsoft, Cisco, Apple, Google and Pfizer – have a combined $247 billion in cash. Microsoft's stash alone is $76.2 billion, and Cisco has $50.6 billion in cash in the coffers.

The non-financial companies in the S&P 500 have 20,254,000 employees in the USA and abroad, according to Howard Silverblatt, S&P Dow Jones Indices Senior Index Analyst. Splitting the S&P 500's cash hoard among them would give each employee $61,000.

No company would give away all its cash. Companies need cash for unexpected events, acquisitions, building new plants and buying new equipment. By and large, companies have favored using excess cash to buy back shares or pay out special one-time dividends to shareholders.

What they haven't been doing is giving extra cash to employees, despite a year of solid – and often record – profits and huge cash hoards. A survey by Aon Hewitt on compensation trends for 2014 shows that companies plan to raise salaries by just 3% this year – the highest since 2008, when the average raise was 3.7%. Economist Ed Yardeni notes that employee compensation and capital spending as a percentage of GDP has been the lowest since the mid-1950s.

But suppose each company with $1 billion in cash took 5% of that stash and give it to employees as a bonus. Unlike a raise, which is an ongoing cost, a bonus is simply a one-time! payout – a way of thanking workers for a good year. What would each employee get?

Employees would get an average $3,086 apiece if all the S&P 500 companies gave a bonus equal to 5% of their cash holdings. For someone earning $51,017 a year, the median household income, that's the equivalent of 6% of salary. But the amount would vary widely according to company, because it's a function of the size of the company's cash stash and the number of its employees.

For Microsoft, 5% of cash and short-term equivalents would be $3.8 billion. Spread among its 99,000 employees, the software company could pay a bonus of $38,492 a worker. For Apple, 5% of its cash would be about $2 billion, spread among $80,300 workers. Bonus: $25,274.

Some companies with many workers would be able to distribute a relatively modest amount. Five percent of McDonalds' $2.3 billion in cash would be $117 million. Spread among Mickey D's 440,000 workers, that's just $266 apiece. Still, an average McDonald's crew member gets $7.72 an hour, according to glassdoor.com. A five-day, eight-hour salary would be $309.60, so a $266 bonus would be 6/7ths of a week's pay.

Walmart workers wouldn't get much, either: 5% of the company's $7.8 billion in cash would be $390.5 million. But it would be spread among the retail giant's 2.2 million employees. Bonus: $178. On the other hand, Delta Airlines, which has gotten concessions on pensions and salaries from its workers, could distribute $2,167 to each of its 78,000 workers.

Nevertheless, companies like McDonald's could give their employees the equivalent of a few tanks of gas.

Companies say that slack demand and economic and political uncertainty have made them reluctant to hire or expand. Nevertheless, non-financial S&P 500 companies scored $698 billion in profits last year, says Howard Silverblatt, S&P Dow Jones Indices Senior Index Analyst. They paid investors $270 billion in dividends last year. If companies gave a bonus to employees equal to the ! amount of! dividends paid out to shareholder, each employee would get about $13,331.

Will it happen? Don't hold your breath. One-time bonuses to all employees are unusual, and because unemployment levels are high, few companies feel the need to pay up to retain employees. Nevertheless, a one-time bonus of equal to 5% of the cash from companies that have $1 billion or more could be an immediate benefit to the economy and the employees that get the bonus. A McDonald's worker could get a few tanks of gas and a Happy Meal. An Apple worker could get a new car -- and maybe an iPad or two.