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Archive for February, 2015

Ask Matt: Can Monster keep its bite?

February 28th, 2015 No comments
Getty

Getty

Q: Can Monster keep the bite?

A: When everybody was shopping Internet bonds in 2000 – the genuine income was to be done in appetite drinks. But if you didn’t own the batch already, it competence be time to get amped up elsewhere.

There’s no subject – Monster is a beast stock. Shares have been up 52,800% given the Nasdaq combination appearance on Mar 10, 2000. That creates Monster the many appropriate behaving batch in the Nasdaq 100 given the dot-com bubble. The Nasdaq 100 is a pick up of the 100 many profitable non-financial bonds that traffic on the Nasdaq. The association keeps giving investors reasons to wish to buy the stock. Monster reported practiced fourth-quarter distinction of 72 cents a share, floating divided estimates by 24%. Revenue surfaced expectations, too, by 3.5%. But the batch has been such a outrageous winner, it’s removing some-more formidable to clear shopping it, even with the stellar distinction growth. Monster is right away trade for scarcely 50 times the trailing widely separated earnings. Compare that with the gratefulness of opposition libation builder and investor, Coca-Cola at twenty-seven times ancestral earnings. And gratefulness is a big reason because analysts, whilst bullish, have been carrying difficulty saying most some-more upside to the stock. Analysts’ 18-month cost aim on the batch is $132.06, that is 6% reduce than Friday’s price.

USA TODAY markets contributor Matt Krantz answers a opposite reader subject each weekday. To contention a question, e-mail Matt at mkrantz@usatoday.com or on Twitter @mattkrantz.

Categories: Financial, General Tags: , ,

Retirees are heavily invested in their homes

February 27th, 2015 No comments
Retirees vital in the most appropriate home of their lives

Retirees vital in the most appropriate home of their lives. (Thinkstock)

For most retirees, their home is where their heart is.

About two-thirds (65%) of retirees says they’re vital in the most appropriate home of their lives, according to a inhabitant consult of some-more than 3,600 respondents. Most respondents were comparison than 50; 1,668 were already retired. It was sponsored by Merrill Lynch in partnership with Age Wave.

Many retirees have a lot of “emotional worth in their home,” says Andy Sieg, conduct of Global Wealth and Retirement Solutions for Bank of America Merrill Lynch.

Government interpretation show which 81% of all U.S. adults 65 and comparison have been homeowners, and 72% of them have paid off their mortgages, he says. “Homeowners who have been 65 and comparison have $4 trillion in home equity.”

Read some-more here.

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The EYES have it; focus on prospects lifts Second Sight

February 27th, 2015 No comments
Second Sight Medical CEO Robert Greenberg.

Second Sight Medical CEO Robert Greenberg.

What kind of week did you have?

Probably nowhere nearby which of little Second Sight Medical Products EYES, which sealed up 37% to $16.17 Friday, capping 4 trade sessions which increased the prosthetics eye maker’s shares a whopping 90%.

Shares began mountainous Tuesday, after California-based Second Sight perceived cost payment capitulation standing from the French supervision for the Argus II implants and estimate systems, used to yield steer to those pang from retinal pigmentosa, a patrimonial degenerative disease.

At $110,000, the implants – which embrace signals from a camera mounted on sunglasses and concede users to see light patterns, have been prohibitively costly.  Second Sight says 3 dozen French patients mount to good from the reimbursements. Germany’s healthcare complement renewed  reimbursement standing on Feb. 3.

The Argus II perceived Federal Drug Administration capitulation in 2013. But so far, usually about 100 patients world-wide have perceived the company’s bionic eyes. The intensity market? Retinal pigmentosa affects an estimated 375,000 people.

Second Sight is additionally focused on building the Orion visible prosthesis, which restores prejudiced prophesy to those pang from alternative vision-related impairments, together with age-related macular degeneration, which goods 2 million people, and an additional 5.8 million people blind due alternative causes which can’t be treated.

According to corporate filings, Second Sight skeleton to progress stream prosthetic prolongation from a stream 120 implants a year to 1,200. It needs to sell about 350 annually to be profitable. The association is scheduled to inform fourth-quarter and 2014 formula Mar 11.

Shares rocketed to $24 following Second Sight’s primary open charity in Nov prior to falling next the $9 charity cost in early February.

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AIG former CEO Benmosche dies

February 27th, 2015 No comments

XXX BENMOSCHE-AIG-070.JPG A FIN USA NY

Former American International Group (AIG) CEO Robert Benmosche, who ordered the insurer by the liberation from the monetary crisis, has died.

Benmosche, 70, was battling with lung cancer given 2010. He died at 8:15 a.m. at NYU Langone Medical Center, according to the company.

“We make known this headlines with surpassing sadness, and the thoughts and prayers have been with Bob’s family at this formidable time,” says Robert S. Miller, Chairman of the AIG Board of Directors in a statement. “Bob was one of the most inspirational and successful leaders in corporate America by any measure. We will never dont think about which underneath Bob’s unusual leadership, the people of AIG repaid America in full and a distinction of scarcely $23 billion. Everyone in the AIG family has been severely sanctified by Bob’s vision, his loyalty, and his loyalty during his 5 years with the company. Bob was a shining male who brought extensive leadership, energy, passion, and persistence to his job. At AIG, we will respect his bequest by stability to concentration on firmness and performance. He will be deeply missed.”

Benmosche is at large credited with autocratic the turnaround of the insurer which was at the epicenter of the monetary predicament by backstopping unsure monetary bets which went sour. Under Benmosche’s leadership, the association increased distinction and repaid loans from the U.S. government.

Starting Sep 1, 2014, Benmosche served as an confidant to the brand new CEO Peter Hancock.

AIG turn one of the companies which personified the “Too big to fail” genius which took over in the arise of the monetary crisis. AIG was the insurer at the iota of most of the formidable monetary collection which continuous the housing marketplace in to a fraudulent Web of tellurian interdependence. Once the U.S. housing marketplace proposed to decline, these monetary instruments called credit default swaps mislaid worth and left AIG with liabilities it couldn’t compensate out.

Seeing how a fall of AIG could sputter by the monetary complement the U.S. Federal Reserve initial combined a $85 billion credit line for the association to tap. Just before long after, in Mar 2009, the association pronounced it was profitable scarcely $170 million in bonuses to the executives. Further supervision involvement was compulsory to keep AIG afloat, together with Treasury shopping batch in the company. Treasury sole the positions in late 2012.

Public perspective opposite the government’s bailouts of the association drew the madness of the public. The association was even mocked on Saturday Night Life for land intemperate retreats for employees at posh locations, notwithstanding reception sovereign bailout funds.

Benmosche had been CEO and boss of AIG given Aug. 10, 2009. Prior to fasten AIG, Benmosche was CEO of Metropolitan Life Insurance. He is credited for circuitous down most of the formidable monetary structures which got AIG in to difficulty and streamlining the company.

Several spots of AIG’s “Thank You America” promotion debate featured Benmosche thanking the U.S. open for the supervision benefit the association received. Shares of AIG have risen 92% underneath Benmosche’s leadership, rounded off in line with the 94% benefit of the Standard & Poor’s 500 during the same period.

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Herbalife delivers itself a death blow

February 27th, 2015 No comments

AP HERBALIFE-FTC F FILE A USA CA

Herbalife’s (HLF) open rivalry No.1 competence be sidestep account physical education instructor Bill Ackman, who has betrothed to strike the association with a genocide blow. But Friday, the association did a great pursuit hammering itself.

The association that uses multilevel selling to sell illness products, reported 11% reduce income of $1.1 billion during the quarter. Net income during the duration forsaken 16% to $103.3 million.

Shares of the batch suffered even yet the company’s quarterly distinction weren’t worse than expected. Shares have been down $3.34, or 9.6%, to $31.41 after the association delivered the formula late Thursday. Herbalife’s practiced distinction of $1.41 a share kick views by 16%, but income longed for by 2.5%.

The big complaint – the outlook. Isn’t it always. The association pronounced it approaching to consequence an practiced distinction this year of in between $4.10 and $4.50 a share. That’s good next the $5.16 a share investors suspicion the association would consequence in 2015 a month ago, says S&P Capital IQ.

It’s the ultimate square of bad headlines for Herbalife and the investors. Shares of the association have mislaid half their worth over the past twelve months. The batch was beaten final year on word it was being investigated by the Federal Trade Commission.

Capture

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Autobytel shares up 22% on rising earnings, sales lead volume

February 27th, 2015 No comments

Autobytel shares have been up as the fourth entertain benefit show some-more car sales leads generated.

Autobytel shares have been up as the fourth entertain benefit show some-more car sales leads generated.

Shares of Autobytel (ABTL) have been up 22% Friday after the car sales site reported that the fourth entertain income rose 26% from a year ago.

Shares were up 22%, or $2.30, to $12.68 in early afternoon trade Friday.

Its fourth entertain net income totaled $1.1 million, up from $662,000 in the year-ago period, incompatible a one-time tax-related gain. Earnings per share of eleven cents kick analysts’ guess of 3 cents.

Autobytel, whose first commercial operation line is to beget sales leads for car dealers, has done vital investments in identical competitors in new months to grow the web presence, together with an merger of AutoUSA final year for $10 million.

In Sep 2013, Autobytel invested $2.5 million to assistance set up AutoWeb, a site that helps consumers find internal dealers’ pricing.

“2014 was a main year for Autobytel as we generated increases in scarcely each metric of the business,” pronounced Autobytel CEO Jeff Coats, in a matter expelled with the benefit inform Thursday. “We have been additionally commencement to knowledge suggestive contributions from the investment in AutoWeb.”

Much of the expansion in fourth entertain revenues — that totaled $26 million vs. $20.7 million a year ago — came from car sales leads delivered to dealers and manufacturers, the association said.

Advertising revenues some-more than doubled to $1.6 million from $722,000, partly due to the climb in page views stemming from the partnership with car-research site Jumpstart.

Autobytel expects mercantile year 2015 income to operation in between $114 million and $120 million, that would be an enlarge of about 7% to 13% from 2014.

Net neutrality adrenaline rush fades for Netflix

February 27th, 2015 No comments

XXX HOC_PS3_019_H.JPG A ENTLess than one day after supervision regulators dealt Netflix a outrageous win with brand brand brand new Internet rules, investors have been already on the lookout for the subsequent phase in what is sure to be a prolonged and drawn out battle.

Shares of Netflix stumbled on Friday, whilst shares of wire companies — which mount to be the greatest losers of the Federal Communications Commission’s due brand brand brand new manners — ticked higher.

Netflix batch traded down 0.5% on Friday to $480.50 a share. Shares of broadband provider Comcast, by contrast, rose 0.14% to $59.23. And Time Warner Cable, which together with Comcast controls 40% of connected broadband connections, changed up 0.5% to $153.17.

That’s a annulment of how bonds traded Thursday afternoon after federal regulators OK’d the FCC’s skeleton to prohibit wire companies from charging some-more for Internet quick lanes.

The annulment demonstrates how small faith investors have that the FCC proposal will become the law of the land.

Indeed, Internet make use of providers (ISPs) have already done it transparent they will challenge the FCC’s offer in court.

And they have a story of winning those battles.

In 2010, Comcast kick behind the FCC’s efforts to stop the wire association from blocking or exceedingly loitering BitTorrent uploads when a U.S. Court of Appeals with the District of Columbia ruled which the FCC did not have office over Comcast’s Internet service.

This resulted in the FCC which same year flitting brand brand brand new manners to forestall ISPs from restraint calm or giving favoured diagnosis to one calm provider over another. Under the rules, Comcast, which owns NBC, would not be authorised to pull the calm forward of, say, Netflix’s strike array House of Cards. 

But the 2010 FCC rules were also tossed following a plea from Verizon. Once again, the U.S. Court of Appeals with the District of Columbia raised concerns which the FCC did not have the management to umpire ISPs’ pricing since they have been not, technically, open application companies.

Thursday’s FCC manners were intended to scold the latest legal hiccup by defining ISPs as open application companies.

FCC Chairman Tom Wheeler pronounced his idea is to extent quick lanes — not to umpire their fees. But the ISPs fright slip of their fees will be next, and they have been certain to have the box for supervision strech beyond in court.

The ultimate quarrel centers on quick lanes since since Verizon, in fighting the box opposite the FCC, said it wanted to pursue a “two-sided” marketplace, or one which will concede it to assign both the consumers AND the companies which wish to strech them, similar to Netflix, for make use of of their broadband pipes.

This has placed calm providers on the defensive, quite streaming video providers, which have been healthy targets for quick lanes. Indeed, ISPs have argued which streaming video providers similar to Netflix and Amazon should compensate some-more because their files have been so most incomparable than, say, an email.

This has made Netflix CEO Reed Hastings the face of tougher law and flourishing open await for supposed net neutrality — or an Internet but quick lanes or blocking.

It was arguably a distortion on the partial of the wire companies because the genuine face people see when they listen to a wonky tenure similar to “net neutrality” is of the assorted expel members of House of Cards, together with Frank Underwood, a political energy attorney played Kevin Spacey.

As the conflict over net neutrality moves to the subsequent phase, Hastings just has to hope which House of Cards continues to be a success. Season 3 of the blockbuster series hits Friday. 

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How big is Apple-stock mania!

February 27th, 2015 No comments
Getty

Getty

Apple (AAPL) is a one-stock insanity that’s reaching proportions coming the complete dot-com burble – at the peak.

At the stream marketplace worth of $756.5 billion – an all-time jot down for any U.S. batch – Apple alone is worth half of the total marketplace worth of the Internet burble at the Mar 2000 peak, according to interpretation from S&P Capital IQ.

The actuality Apple’s marketplace worth is half of the Internet burble quantifies what most of people think – Apple is a one-stock mania. Back in the dot-com boom, investors were feeling with scores of comparatively small companies which in total amounted to a large retard of the market. Today, which same unrestrained is strong in usually a singular stock. Apple continues to be the one and usually batch most investors caring about – formulating a single-minded ardour which rivals ancestral crazes in the past.

Just demeanour at the numbers. At the really tip tip of the Internet disturb in Mar 2000, the companies in the USA TODAY Internet 100 index were valued at $1.4 trillion, formed on the chronological marketplace values which have been accessible for 86 of the 100. Data on fourteen of the companies in the index, meant to benchmark the worth of Internet bonds when it was combined in 1999, is not available.

Interestingly, Apple alone is about next to to the worth of the Internet bonds if the dual giants – Cisco Systems and AOL – have been removed. Leaving this giants out gives the Internet burble companies a common worth of $772 billion.

During the Internet bubble, dot-coms were all which mattered. Many investors don’t recollect this anymore, but AOL was such a big thing there was essentially a movie in 1998 starring Tom Hanks about the receptive to advice the online use would have when a brand new email arrived.

What was on this week? An complete show dedicated to all things Apple.

Does this meant Apple is indispensably a burble similar to the dot-com? No. Apple essentially generates distinction – essentially jot down distinction – distinct the dot-coms which mostly mislaid money. And Apple trades at rounded off eighteen times the trailing widely separated gain – nowhere nearby the valuations of dot-coms. And there’s the make a difference of inflation.

But a little of the parallels in conditions of seductiveness turn have been noteworthy. Investors might shift – but tellurian inlet never does.

MOST VALUABLE STOCKS IN USA TODAY INTERNET 100 AS OF MARCH 2000

Company Symbol (at the time) Market worth ($ bils.)
Cisco Systems CSCO $474.3
America Online AOL $153.9
Yahoo YHOO $93.7
Broadcom BRCM $50.6
Juniper Networks JNPR $44.2

Sources: S&P Capital IQ, USA TODAY research

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Biggest Loser? Weight Watchers’ shares

February 27th, 2015 No comments
The late John Candy  receiving a examination breather in  1984 movie Splash.

The late John Candy receiving a examination breather in 1984 movie Splash.

Diet devise purveyor Weight Watchers International WTW shed over 35% of the marketplace worth Friday, slumping $6.23  to $11.33 a day after the association reported the a 15% detriment in subscribers during the fourth-quarter and pronounced persisting struggles would stroke 2015 results.

The batch dump is  Weight Watcher’s greatest every day decrease given it began trade in 2001 and the ultimate in a array of troubles to strike the company, whose restructuring and turnaround efforts aren’t approaching to retreat shifting fortunes until 2016.

Hampered by foe from on-line diet plans, smartphone apps and wearable aptness band,  Weight Watcher’s income has depressed 8 uninterrupted quarters. During the last, income slipped 10.4% to $327.8 million, whilst net income wilted 52.4% to $97.4 million from $204.7 million in the year-ago quarter.  For the full mercantile year, income forsaken 14% to about $1.48 billion.

If investors were seeking for a taste of hope, they didn’t get it from CEO Jim Chambers, who has overseen cost-cutting, a code brand brand new code strategy, code brand brand new product offerings and an fondness with healthcare provider Humana HUM.   The association expects 2015 income to dump scarcely 30% this year.

Chambers told batch analysts in a post-earnings discussion call which 2015 hasn’t gotten off to a plain start. New subscriber expansion – traditionally clever at the begin of  a code brand brand new year – down almost from 2014, notwithstanding a TV legal holiday selling campaign, Weight Watchers’ first-ever Super Bowl Ad  and a YouTube video (My Butt) that’s gotten some-more than 2 million hits.

“While we resolutely hold in the underlying strategies, the execution at the begin of the year was not what we hoped for, and I’m unhappy to contend which we have been not nonetheless where we approaching to be, and which the turnaround will take longer than we had anticipated,” Chambers said.

Traders sole with gusto, with volume attack eighteen million shares, some-more than twenty times normal trade volume. One thing’s for sure, Weightwatchers’ share cost has positively embellished down. Since peaking  near $87 in Apr 2011, Weightwatchers has shrunk 87%.

Follow bonds on Twitter @gstrauss_

 

 

Nasdaq 5000 ‘fun facts’ tick by tick

February 27th, 2015 No comments
AP WALL STREET INOVALON IPO F USA NY

A dilettante at the Nasdaq MarketSite monitors the pricing of Inovalon during the IPO, Thursday, Feb. 12, 2015, in New York. (Mark Lennihan, AP)

True or False: The Nasdaq combination sealed on top of 5000 on twenty-two trade days behind in the 2000 burble days.

Answer: False (Correct answer: dual closes on top of 5000)

The Nasdaq composite, of course, is behind in the headlines as it enters Friday’s trade event reduction than thirteen points off the all-time shutting tall — that was a long, prolonged time ago (15 years, to be exact).

Fun Nasdaq 5000 “factoids”:  

* The series of days the Nasdaq sealed on top of 5000: 2

* The series of days the Nasdaq traded on top of 2000: 7

* The initial day the Nasdaq surfaced 5000: March 7, 2000  (5006.78)

* The final day the Nasdaq surfaced 5000: March 27, 2000 (5022.23)

* The Nasdaq’s first-ever tighten on top of 5000: March 9, 2000 (5046.86) 

* The Nasdaq’s all-time jot down close: March 10, 2000 (5048.62) 

* The Nasdaq’s all-time “intraday” high:  March 10, 2000 (5132.52)

Source: USA TODAY research/Yahoo Finance

 

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