Wednesday, December 31, 2014

3 Reasons Gallup's Assault on Social Media Advertising is Terribly Misleading

Are social media ads on sites like Facebook and Twitter effective? Gallup doesn't think so. 

For businesses that want to expand their reach in the modern world, social media seems a logical place to start. But a new poll by research firm Gallup says these businesses are wasting their time.

In a new research report titled "The Myth of Social Media," Gallup begins by describing the perceived opportunity, noting that Facebook (NASDAQ: FB  ) users post 4.75 billion items of content each day. Meanwhile, Twitter (NYSE: TWTR  ) users on a daily basis send 400 million tweets, Instagram users "like" 1.2 billion photos, and YouTube viewers watch an incredible 4 billion videos. As a result, Gallup said U.S. companies just last year collectively spent $5.1 billion on social media advertising.

Gallup's argument sounds reasonable
However, Gallup said a whopping 62% of the 18,525 U.S. consumers it polled insisted social media has "no influence at all" on their purchasing decisions. By comparison, just 5% stated it has "a great deal of influence," 30% cited "some influence," and the remaining 3% weren't sure what to think.

The problem, Gallup said, is that "most consumers aren't visiting social media sites to engage with brands -- they are there to interact with people they know." Specifically, when asked their reasons for social media use, 94% answered "To connect with friends and family." By comparison, only 29% cited following trends or finding product reviews and information, and just 20% wanted to "comment on what's hot or new" or to write reviews of products.

That sounds fair enough. It is called "social" media, after all, and Facebook CEO Mark Zuckerberg has repeatedly outlined his ambitions of "connecting the world" through his platform. And, to our fickle market's dismay, those ambitions often come at the expense of near-term profitability.

Here's why it doesn't add up
However, a Facebook representative wasted little time chiming in with this: "The only thing this poll shows is that self reported behavioral data is unreliable. For decades, studies that look at people's actual, real-world behavior have shown that ads on all mediums, including social media, effect the things people buy."

I'm with Facebook on this one, and here are three reasons why:

1. Consumer, meet restraint bias
First, have you ever heard of restraint bias? It's the tendency to overestimate our ability to control impulsive behavior. Fellow Fool Morgan Housel touches on how restraint bias affects investors here. But whether consumers admit it or not, restraint bias also plays a huge role in advertising. And, as a collective group, we consumers tend to think we're much better at resisting the allure of advertisements than we really are.

2. Gallup's own generational data
Even so, have a look at this table, taken directly from Gallup's own report and titled "Influence of Social Media on Purchasing Decisions, by Generation."

  % No influence at all  % Some influence  % Great deal of influence 
Millennials 

48

43  7
Generation X  57  34 
Baby Boomers  68  26 
Traditionalists  75 16 

You might be tempted to respond to the data with a "Duh." But keeping in mind Gallup's 62% "no influence" stat, consider its broader implications. Gallup's poll only took into account consumers aged 18 and over, and there's a clear trend of younger consumers being more amiable to the effectiveness of social media ads.

This makes perfect sense considering these younger consumers are, by and large, much more comfortable than other groups with social media platforms. Compared to older generations, it's also no mystery that they comprise a larger percentage of the overall user base for burgeoning sites Facebook and Twitter. As today's youth age, it seems reasonable to assume their comfort in accepting social media as a viable ad medium will carry forward.

3. Improving ad platforms
Finally, consider that Gallup's poll was conducted from Dec. 12, 2012, to Jan. 22, 2013. Why does this matter? Because social media sites have gone to great lengths since then to continuously improve the effectiveness of their respective advertising platforms.

Twitter's "Tailored Audiences" product, for one, was only introduced in December 2013, and aims to drive better performance for advertisers by letting them target specific groups of existing and potential customers with more relevant ads.

To Gallup's credit, Facebook formally launched its own equivalent solution -- dubbed "Custom Audience" -- in September 2012, just a few months before Gallup's data collection efforts began. However, Facebook has revamped and expanded its Custom Audience tools several times since then, causing many big-name advertisers that had previously abandoned social media ads to dive back in.

Foolish takeaway
At first glance, Gallup's poll seems to frame a solid case against the effectiveness of social media advertising. But when you dig deeper into the holes created by consumers' own biases, Gallup's generational data, and the fact that social media platforms are continuously improving their advertising skills, the pollster's stated conclusion just doesn't hold water.

Warren Buffett: This new technology is a "real threat"
Social media isn't the only disruptive tech growing its influence. At the recent Berkshire Hathaway annual meeting, Warren Buffett admitted this emerging technology is threatening his biggest cash-cow. While Buffett shakes in his billionaire-boots, only a few investors are embracing this new market which experts say will be worth over $2 trillion. Find out how you can cash in on this technology before the crowd catches on, by jumping onto one company that could get you the biggest piece of the action. Click here to access a FREE investor alert on the company we're calling the "brains behind" the technology.

Tuesday, December 30, 2014

Video David Winters - 'Coke-Gate Keeps Getting Worse'

The Wintergreen Fund (Trades, Portfolio) owns more than 2 million shares of Coca-Cola (KO).

His questioning of the Coca-Cola compensation plan has gained a very high profile with Warren Buffett (Trades, Portfolio) abstaining on the vote on the plan despite agreeing with Winters.

Here is Winters in an interview referring to Buffett as the "abstainer from Omaha."

View the video here.

Also check out: David Winters Undervalued Stocks David Winters Top Growth Companies David Winters High Yield stocks, and Stocks that David Winters keeps buyingAbout the author:Canadian Valuehttp://valueinvestorcanada.blogspot.com/
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Monday, December 29, 2014

Mid-Afternoon Market Update: Crude Oil Slides 3%; Gilead Sciences Shares Spike Higher

Mid-Afternoon Market Update: Crude Oil Slides 3%; Gilead Sciences Shares Spike Higher Related BZSUM Mid-Day Market Update: Ambarella Slips On Analyst Downgrade; Juno Therapeutics Shares Surge Mid-Morning Market Update: Markets Edge Higher; Carl Icahn Discloses Stake In Manitowoc

Toward the end of trading Monday, the Dow traded up 0.01 percent to 18,054.77 while the NASDAQ climbed 0.06 percent to 4,809.67. The S&P also rose, gaining 0.16 percent to 2,092.14.

Leading and Lagging Sectors

On Monday, the utilities sector proved to be a source of strength for the market. Leading the sector was strength from Aqua America Inc. (NYSE: WTR) and MDU Resources Group Inc. (NYSE: MDU).

In trading on Monday, telecommunications services shares were relative laggards, down on the day by about 0.35 percent. Meanwhile, top decliners in the sector included Cellcom Israel Ltd. (NYSE: CEL), down 5 percent, and Partner Communications Company Ltd. (NASDAQ: PTNR), off 3.9 percent.

Top Headline

Activist investor Carl Icahn disclosed a 7.7 percent stake in Manitowoc Company Inc (NYSE: MTW) on Monday, according to a 13D filing.

Based on the 13D filing, Icahn intends to hold discussions with the company's management and Board of Directors relating to the separating of the company's Crane and Food service segments into two separate companies.

Equities Trading UP

The Manitowoc Company, Inc. (NYSE: MTW) shares shot up 7.89 percent to $22.57 on report of Icahn stake. Carl Icahn reported a 7.77% stake in Manitowoc, according to a 13D filing. Based on the 13D filing, Icahn intends to hold discussions with the company's management and Board of Directors relating to the separating of the company's Crane and Food service segments into two separate companies.

Shares of Revolution Lighting Technologies, Inc. (NASDAQ: RVLT) got a boost, shooting up 30.86 percent to $1.68 after the company announced a strategic distribution partnership with Fastenal.

Gilead Sciences Inc. (NASDAQ: GILD) shares were also up, gaining 3.02 percent to $96.62. Gilead reported amended deals with J&J's Janssen to develop PREZISTA-based single-tablet regimen for the treatment of people living with HIV. Morgan Stanley upgraded Gilead Sciences to Overweight.

Equities Trading DOWN

China Xiniya Fashion Limited (NYSE: XNY) shares tumbled 2.49 percent to $2.35 after the company reported a Q3 loss per ADS of $0.59, versus earnings per ADS of $0.02 in the year-ago quarter.

Shares of Ambarella, Inc. (NASDAQ: AMBA) were down 4.55 percent to $53.39 after Needham downgraded the stock from Hold to Underperform.

Skyworks Solutions Inc. (NASDAQ: SWKS) was down, falling 3.13 percent to $72.16 after Needham downgraded the stock from Buy to Hold.

Commodities

In commodity news, oil traded down 3.03 percent to $53.07, while gold traded down 1.05 percent to $1,182.80.

Silver traded down 2.18 percent Monday to $15.80, while copper rose 0.27 percent to $2.82.

Eurozone

European shares closed mixed today. The eurozone’s STOXX 600 rose 0.11 percent, the Spanish Ibex Index tumbled 0.84 percent, while Italy’s FTSE MIB Index tumbled 1.15 percent. Meanwhile, the German DAX rose 0.05 percent and the French CAC 40 climbed 0.51 percent while UK shares gained 0.36 percent.

Economics

The Dallas Fed manufacturing business index fell to 4.10 in December, versus a prior reading of 10.50. However, economists were expecting a reading of 9.00.

Posted-In: Earnings News Guidance Eurozone Futures Commodities Management M&A

© 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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Sunday, December 28, 2014

Postal Service, union wrangle over Staples

WASHINGTON (AP) — The opening of Postal Service retail centers in dozens of Staples stores around the country is being met with threats of protests and boycotts by the agency's unions.

The new outlets are staffed by Staples employees, not postal workers, and labor officials say that move replaces good-paying union jobs with low-wage, nonunion workers.

"It's a direct assault on our jobs and on public postal services," said Mark Dimondstein, president of the 200,000-member American Postal Workers Union.

The dispute comes as the financially struggling Postal Service continues to form partnerships with private companies, and looks to cut costs and boost revenues. The deal with Staples began as a pilot program in November at 84 stores in California, Georgia, Massachusetts and Pennsylvania as a way make it easier for customers to buy stamps, send packages or use Priority and certified mail.

Postmaster General Patrick Donahoe said the program has nothing to do with privatization and everything to do with customer service and driving up demand for the agency's products.

"The privatization discussion is a ruse," Donahoe said in an interview. "We have no interest in privatizing the Postal Service. We are looking to grow our business to provide customer convenience to postal products."

Staples spokeswoman Carrie McElwee referred questions about union concerns to the Postal Service. She said the company "continually tests new products and services to better meet the needs of our customers."

Union leaders fear that if the Staples program is successful, the Postal Service will want to expand it to more than 1,500 of the company's other stores. That could siphon work and customers away from nearby brick-and-mortar post offices, taking jobs from postal workers and even leading traditional post offices to close.

Union leaders have been visiting Staples stores to meet with managers, asking them to share the union's displeasure with upper management.

Dimondstein asked! to meet with the Staples CEO Ronald Sargent, who has declined.

The union plans to hold "sustained" protests this month at Staples stores in the San Francisco and San Jose, Calif., area that would be expanded elsewhere. Union officials also are considering how they can exert pressure on Staples shareholders.

"If Staples insists on continuing to refuse to staff those stores with postal workers, we're going to urge people to take their business elsewhere," Dimondstein said.

The union says it's not asking to shut down the program. It wants the counters to be run by postal employees, not workers hired by Staples. The average postal clerk earns about $25 an hour, according to the union, plus a generous package of health and retirement benefits. The Staples post office counters are run by nonunion workers often making little more than the minimum wage.

The Postal Service increasingly has looked to work with the private sector to help increase business. In November, it announced a lucrative deal with Amazon to begin package delivery on Sunday.

The agency has struggled for years with declining mail volume, but the lion's share of its financial plight stems from a 2006 congressional requirement that it make annual $5.6 billion payments to cover expected health care costs for future retirees. It has defaulted on three of those payments. The Postal Service lost $5 billion over the past year, though operating revenue rose 1.2%.

So far, the Postal Service has rebuffed the union's demands.

As far as who will staff the counters, "that's Staples' business. They make their own business decisions and it has nothing to do with us," Donahoe said.

Donahoe said he'd like to see post office counters in every Staples store "as soon as possible." But he doesn't see them as replacing any of the 33,000 traditional post offices. He said he sees the program as an opportunity "to grow the business."

James O'Rourke, a professor of management at the University of Notre Dame, said t! he Postal! Service is simply following the trend of other businesses such as banks and medical clinics opening in grocery and drug stores to get more customers and save overhead costs.

"You can't blame the union for looking suspiciously at this move, but from the perspective of postal management and postal customers, this is all good," O'Rourke said.

Donahoe acknowledged that it could save money in employee costs, but insisted that is not the agency's motivating force. Since 2008, the Postal Service has reduced its employees by more than 200,000, mainly through attrition.

"Keeping our expenses down is no different than what any other business would do," he said.

Back in 1988, the Postal Service tried a similar plan to put retail units in Sears stores in Chicago and Madison, Wis. APWU members picketed Sears headquarters in Chicago, mailed thousands of letters of protest to then Sears Chairman Ed Brennan and even cut up their Sears credit cards.

The pressure worked and a year later the program ended, with Sears saying it did not want to be at the center of a dispute between the Postal Service and the union. But the APWU's membership now is almost half of what it was 25 years ago, and unions don't carry the same clout they once did.

Dimondstein, who took the helm of his union in November and pledges a more activist approach, insists his members will bring considerable pressure on Staples.

"I think we have a lot of clout," he said. "We're in every hamlet, town, city and state in the country."

Follow Hananel on Twitter at SamHananelAP

China Auto Death Match: Volkswagen Tops General Motors, Ford Bests Toyota

China expects its economy to grow by 7.6% in 2013–and the world’s automakers–Ford Motor (F), General Motors (GM) and Volkswagen (VLKAY) among them–are betting big that they will benefit.

ZUMAPRESS.com

Bloomberg explains the state of the battle royale among the world’s car makers:

Volkswagen AG is poised to sell more vehicles in China than General Motors Co. for the first time in nine years, regaining its place as the biggest foreign carmaker in the world's largest auto market.

Both companies have surpassed their targets to deliver more than 3 million vehicles in China this year, with Volkswagen crossing the mark on Dec. 5 and GM a week later. The German automaker held a lead of about 70,000 vehicles through the first 11 months, according to data from the automakers.

Competition is set to intensify between the top European and American automakers, which have announced a combined $36 billion in investment for China even as more of the nation's cities consider vehicle restrictions to cut pollution. Toyota Motor Corp. (TM), still recovering from a consumer backlash, was outsold by Ford Motor Co. in the country this year.

In a report on Monday, Sterne Agee’s Michael Ward assessed the state of auto sales in South America. He writes:

The South American industry remains volatile and second half sales have been weaker than expected but the region continues to hold promise for future growth…

General Motors is the market leader in the region but has dropped more than two points in share over the last few years. Ford's product lineup has been revamped and has gained share in eight of the last nine months. For the full year, South American operations for both companies are expected to be about breakeven and below the 2012 comparison.

General Motor’s South American market share dropped to 16.4% in November, down from 17.6% a year earlier, while Ford’s share remained at 8.8% of the market. Volkswagen saw its market share drop to 15.4% from 16.6%, while Toyota Motor’s rose to 5.5% from 4.9%.

Shares of General Motors have gained 2.2% to $41.79 today at 10:56 a.m., while Ford has risen 0.9% to $15.32, Toyota has advanced 2.6% to $121.74 and Volkswagen is up 0.4% to $53.02.

Saturday, December 27, 2014

Cheniere Energy, Nat Gas Futures Spike Higher

Posted-In: News Futures Commodities Markets Movers

(c) 2013 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

  Around the Web, We're Loving... Learn to Use Trading Platforms Like Hedge Fund Traders do Rumsfeld: Denial of Benefits to Fallen Soldiers' Families 'Inexcusable' Come See How the Pro's Trade in this Exclusive Webinar Facebook, Baidu Lead Big Caps Beating Shutdown What Should You Know About AMZN? Most Popular Hewlett-Packard's Chromebook 11 Disappears From Best Buy, Amazon iPhone 5S Sales To Rise, iPhone 5C Sales To Plummet Will Xbox One's Non-Interactive Entertainment Features Trump PlayStation 4? Samsung in Apple Court: "We're Guilty And Owe A Lot Of Money" Elon Musk Wants Tesla Electric Truck to Compete with Ford F150 Cisco Q1 Earnings Preview Related Articles (LNG + UNG) Cheniere Energy, Nat Gas Futures Spike Higher The Natural Gas Outlook, Both Long- and Short-Term, is Bullish ETF Outlook for Tuesday, November 5, 2013 A Warning For Natural Gas Longs Will Demand From China Continue Moving Gold and Energy Assets? Natural Gas Futures Rally View the discussion thread. Partner Network #marketfy-ae-block { display: none; border: 2px solid #0a3f75; overflow: hidden; width: 300px; height: 125px; text-align: center; background-color: #45719E; position: relative; z-index: 1; } #marketfy-ae-block a { display: block; width: 300px; height: 125px; position: relative; z-index: 2; color: #ffffff; text-decoration: none; } #marketfy-ae-block-countdown-text { color: #f9fc99; padding: 0px 0 0 0; font-size: 19px; font-weight: bold; line-height: 19px; } #marketfy-ae-block-countdown-text-start { font-size: 12px; } #marketfy-ae-block-countdown { padding: 5px 0 5px 0; font-size: 26px; } #marketfy-ae-block-signup { padding: 5px 47px; } #marketfy-ae-block-signup:hover { background-color: #457a1a; } #marketfy-ae-block #marketfy-ae-block-logo { display: block; padding: 3px 0 0 0; margin: 0; } #marketfy-ae-block-logo { text-indent: -9999px; } #marketfy-ae-block-free { display: block; position: absolute; top: 7px; right: -23px; width: 80px; height: 16px; line-height: 16px; text-align: center; opacity: 1; -webkit-transform: rotate(45deg); -moz-transform: rotate(45deg); -ms-transform: rotate(45deg); transform: rotate(45deg); font-size: 13px; font-weight: normal; color: #333333; background-color: yellow; z-index: 500; text-shadow: 1px 1px #999999; } #marketfy-ae-block-arrow { position: relative; width: 60px; height: 60px; z-index: 10; margin: -80px 0 13px -21px; } #marketfy-ae-block-arrow img { height: 60px; width: auto; } Marketfy's International
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This Is the Perfect Trade for a 14-Day Market

This is a great way to make some extra money right now.

Over the next 14 days, I expect stocks to remain mired in a relatively tight trading range, as nobody wants to place any really big bets on what's going to happen before the Federal Reserve makes its Sept. 18th announcement on if and/or how it will "taper" its QE bond-buying program.

And you can make money from this range-bound activity with one simple trade.

It takes about 10 minutes to place. It'll last just 10 days. And it'll give you the perfect blend of low risk and high probability.

So here's what to do...

The Best Way to Boost Your Total Return

Based on my latest technical research, I'm expecting the S&P 500 to trade between 1,625 and 1,700 over the next three weeks. The S&P closed just slightly above 1,638 on Thursday, Aug. 29, and that means we are currently near the bottom of that range. It also means this market is statistically oversold.

Yet despite the market's oversold status, I am not expecting a big move higher, given the uncertainty in front of the FOMC meeting. This kind of range-bound market isn't good for investors looking to buy stocks, nor is it good for those looking to short the market.

It is, however, perfect for those who sell covered calls.

Selling covered calls is one of the best ways to generate income and to supersize your portfolio's total return. The strategy is both low risk and high probability, especially in a flat market environment that's currently at the low end of a trading range.

Here's how it works for the current trade...

The "Fast Money" Timing Is Perfect

When you sell covered calls, you collect a time premium, which decays rapidly in the final weeks before option expiration.

Recently, premiums have been elevated on the heavily traded S&P 500 Index options. The added volatility of the August decline, along with the recent risk premium due to uncertainty from the hostilities in Syria, have kicked up the value of call options.

Selling call options now, given these elevated premiums, means you are even more likely to come out on top once the volatility settles and once the index settles in at the trading range I'm expecting over the next two weeks ahead of the FOMC announcement.

Here's how I see a winning covered call trade setup for the next several weeks:

First, you buy the S&P 500 Index via the SPDR S&P 500 ETF (SPY) somewhere below $165 (the closing price on Aug. 29 was $164.17). Second, you sell the SPY 2013 Sept. 165 calls expiring on Sept. 13 for above $1.30. Here you would sell 1 call option for every 100 shares of SPY you buy.

If SPY is above $165 on the close of Sept. 13, the stock will be called away and sold at $165. That means you collect your $1.30 premium plus whatever capital gain you get based on your buy price.

If SPY is below $165 on the close of Sept. 13, the option will expire worthless and you can just keep the premium you collected and then either hold on to SPY shares or sell them, depending on your market outlook.

For example...

If this trade had been placed at the close of business on Aug. 29 (at this writing), you would have purchased SPY at $164.22. The premium you received for the SPY Sept. 165 calls would have been $1.50.

In this scenario, as long as SPY closes above $162.72 on Sept. 13th, you would make a profit minus transaction cost.

The maximum profit would look like this:

Max. profit = $1.50 (the options premium you collected) + $0.78 (the $165 strike price minus the buy price of $164.22).

That's $2.28 per share in fast money.

The next two weeks are, I suspect, going to see stocks meandering in a tight trading range up until the Fed lets us know what, exactly, its plans are for tapering of QE.

Yet by using this covered call strategy, you don't have to sit around waiting on the outcome. Take the initiative, be proactive, and start supersizing your own total return.

Thursday, December 25, 2014

GM's Latest Overhaul Moves Forward

General Motors (NYSE: GM  ) unveiled a brand-new $130 million "enterprise data center" in Michigan this week. That may not sound like a big deal, but it's one key part of a massive change in the way GM does business -- one that could result in better cars and bigger profits.

In this video, Fool contributor John Rosevear explains the big story behind this new data center -- and why it's a huge step into the future for GM.

Few companies lead to such strong feelings as General Motors. But while many have shunned GM out of anger over its bailout, new management is quietly turning the battered old General into a gleaming global powerhouse. The Fool's premium GM research service has all the details of GM's post-bankruptcy transformation -- and advice on how best to profit from the General's ongoing overhaul. Just click here to get started now.

Wednesday, December 24, 2014

Consumer Spending Gains Steam, Boosted by Lower Gas Prices

Holiday Shopping Black Friday Damian Dovarganes/AP WASHINGTON -- U.S. consumer spending advanced at a brisk clip in November as lower gasoline prices gave the holiday shopping season a boost, offering the latest sign of underlying momentum in the economy. The Commerce Department said Thursday retail sales excluding automobiles, gasoline, building materials and food services, increased 0.6 percent last month after rising 0.5 percent in October. The so-called core retail sales correspond most closely with the consumer spending component of gross domestic product. "It provides a bit of a boost to fourth-quarter growth estimates," said Dan Greenhaus, chief strategist at BTIG in New York. "We expect the lower gasoline price boost to continue into next year's first half and with an improving jobs market, GDP should be well-supported in coming quarters." November's increase in core retail sales exceeded Wall Street's expectations for a 0.4 percent gain. It also suggested that consumer spending, which accounts for more than two-thirds of U.S. economic activity, was accelerating in the fourth quarter after slowing in the July-September period. Forecasting firm Macroeconomic Advisers raised its fourth-quarter growth estimate by three-tenths of a percentage point to a 2.4 percent annual rate. U.S. stocks rose on the data, bouncing sharply from a three-day drop. Lululemon Athletica (LULU) shares surged after the yoga apparel maker posted quarterly results. U.S. Treasury debt yields edged up, while the dollar rose against a basket of currencies. The solid retail sales data added to November's bullish employment report in painting a fairly upbeat picture of the economy, despite a recession in Japan and faltering growth in the eurozone, China and major emerging markets. In a separate report, the Labor Department said new claims for state unemployment benefits fell last week, pushing them firmly beneath the key 300,000 level, in a sign of continued improvement in the jobs market. Tightening labor market conditions are starting to spur faster wage growth, which together with lower gasoline prices is helping to stimulate consumer spending. Broad-Based Gains U.S. gas prices have dropped by about 64 cents to $2.767 a gallon since the beginning of the year. Economists at Moody's Analytics estimate that consumers save about $1 billion over a year with each 1-cent drop in the price of gasoline.

Consumers are putting the money they save at the pump to work.

"Consumers are putting the money they save at the pump to work," said Gennadiy Goldberg, a strategist at TD Securities in New York. Lower energy prices are also keeping imported inflation pressures subdued. A second report from the Labor Department showed import prices recorded their biggest drop in nearly 2½ years in November. Last month, core retail sales were lifted by a 1.2 percent jump in receipts at clothing stores, an indication that the holiday shopping season got off to a solid start, with retailers offering discounts to attract shoppers. Aside from clothing, there were increases in most of the retail sales categories. While declining gasoline prices are supporting consumer spending, they weighed on service station sales, with receipts falling 0.8 percent. That decline was, however, offset by a 1.7 percent surge in automobile sales, which helped lift overall retail sales by 0.7 percent in November. It was the largest gain since March and followed a 0.5 percent increase in October. More from Reuters
•Amazon Job Ads Hint at Global Ambitions for Same-Day Delivery •Market Wrap: Indexes Tumble as Oil Prices Fall Further •Market Wrap: Global Worries Keep Market Flat

Tuesday, December 23, 2014

Bill Simmons goes off on Twitter about ESPN's "Mike and Mike"

bill simmons Bill Simmons calls out ESPN's "Mike and Mike" on Thursday saying, "Have the b***s to call me to discuss it on the show." NEW YORK (CNNMoney) Bill Simmons' silence on ESPN didn't last very long.

On Thursday he took to Twitter to rant about comments a fellow radio host made about him on ESPN's "Mike and Mike" show.

Simmons is the infamous radio jock who was suspended a few weeks ago for making comments about NFL commissioner Roger Goodell. On Wednesday he was on the air complaining about Lebron James' early season struggles.

Mike Golic called Simmons' take, "one of the most ridiculous statements I've heard four games into a season in my life in any sport." Golic also said, "That's what I'll say about Bill Simmons. So, you know, he grabbed a headline, which is something I know he loves."

Simmons was not having it and sent off a string of angry tweets.

"What Mike and Mike did today was absolute garbage," Simmons tweeted. "I would say I lost respect for that show, but I never had it."

He then challenged Golic personally.

"Have the b***s to call me to discuss it on the show," Simmons tweeted. "Don't pull it out of context just because you need fodder for a segment. Pathetic."

Simmons ended the rant saying, "But hey -- I'm just a guy who can't evolve, right?" which included a link to a blog post by ESPN's Ombudsman which mentioned Simmons' prior suspension.

Simmons comments about Lebron were made on "The Herd with Colin Cowherd," yet another ESPN show.

NBA extends TV deals through 2025   NBA extends TV deals through 2025

The bilious tweets come weeks after reports have circulated that Simmons may be thinking of striking out on his own. He's in the last year of his contract at the network.

His shell shocked fans also took to Twitter to encourage Simmons to cool off and to avoid another suspension, or worse.

"Don't get suspended/fired, Bill!" and "here comes the month long suspension."

Late Thursday afternoon, Golic took to Twitter to clear the air tweeting, "Spoke to Bill, all is good. I'll discuss on show."

ESPN declined to comment on this story.

!

Check out the tweets below:

bill simmons tweet

bill simmons tweet2

Monday, December 22, 2014

Why Family Dollar Is an Activist Investor Target

When Carl Icahn tweeted that he had bought a 9% interest in Family Dollar (NYSE: FDO  ) , investors knew something big was brewing.

This dollar store chain is worth considerably more than that after the arrival of activist investors. Photo: Flickr user Mike Mozart.

While other marquee activist investors had taken large stakes in the lagging dollar store chain -- Nelson Peltz even tried to buy the company for $7 billion in 2011 -- Icahn's arrival carried an air of expectancy. For good or ill, he's not typically someone who sits on his hands, and it's not long before the pot is stirred.

But what about Family Dollar attracted Icahn and his peers?

Suburban sprawl
With more than 8,200 locations stretched across 46 states, Family Dollar is the second-largest dollar store chain, behind industry leader Dollar General (NYSE: DG  ) , which boasts more than 11,300 stores, and firmly ahead of No. 3 player Dollar Tree's (NASDAQ: DLTR  )  5,100 stores.

Yet despite its reach, Family Dollar has straggled behind its rivals. As Icahn himself was soon to make clear, the chain has underperformed the competition on virtually every measure and its stock has lagged the broader market over the past one- and three-year periods.

In an economic environment that ought to be favorable to dollar stores -- and for both Dollar General and Dollar Tree it has been -- Family Dollar has been unable to cash in. It was imperative, Icahn said, that the company "be put up for sale immediately" as a result.

Price is what you pay
At one end, Dollar Tree has marked out its territory as the go-to deep discounter. Almost everything it sells costs exactly $1, which helps a penny-pinching consumer keep a firm grasp on his or her budget when entering the store. By expanding the amount of consumables it offered, particularly in the frozen food section, along with adding brand names to its shelves, Dollar Tree has made itself indispensible to the tight-money customer.

Growth is slowing everywhere, but Family Dollar still lags. Data: Company SEC filings.

Dollar General, on the other hand, has succeeded by offering a range of values to customers, while also keeping a handle on costs. It's revenue might not grow as fast as that of Dollar Tree, and it might earn a little bit less on operating margins, but its national sprawl has kept it in front of consumers who are looking to save when shopping.

Meanwhile, Family Dollar went from being the premier dollar store chain to falling by the wayside. More closely following the Dollar General script, it too offered a range of price points, but until recently it was tending toward the higher end. That seemed to confuse shoppers who entered looking for extreme bargains but came away with the feeling that this was a "dollar store" in name only.

Value is what you get
Belying the economic recovery, consumers who went down market during the recession largely haven't upgraded again. The well-off might be doing better, but the middle class continues to be ground down.

According to the analysts at Sentier Research, inflation-adjusted median household annual income as of June was down 3.1% since the economic recovery supposedly began in June 2009, and off nearly 5% below where the recession started in December 2007. It's just starting to improve, but these numbers explain why dollar stores are still a popular destination with shoppers.

Dollar Store Operating Margins | Create Infographics

Family Dollar's management belatedly realized that its pricing policies were putting it more in competition with mass retailers like Wal-Mart (NYSE: WMT  ) than with other dollar stores, not an easy game to win, and earlier this year it cut prices on some 1,000 items.

it might be too little, too late for Family Dollar to recover and why Icahn said it was time for management -- and the company -- to go.

He who hesitates is lost
While the billionaire's favored acquirer, Dollar General, dithered on making an offer, despite supposedly being in favor of a union, Dollar Tree stepped up with an $8.6 billion bid that management accepted. Too late, Dollar General countered with a higher offer and then raised it to $9.1 billion and a pledge to shed hundreds of stores to get over Family Dollar's worry over antitrust regulations.

A Dollar General-Family Dollar tie-up makes sense as they have similar retail strategies, but a 19,600-store-strong chain, even if a bunch were sold, might be too high a hurdle to overcome. But the fact that Dollar Tree is willing to keep on Family Dollar's CEO after completion of the deal and Dollar General has not made that commitment probably sweetens the pot in favor of the former.

So long, goodbye, see you later
Shares of Family Dollar have soared almost 30% since the drama began; Icahn has since sold out of his position in the dollar store chain, indicating even he felt the bidding war wouldn't go much higher.

All told his entrance on the scene heralded big changes, underscoring the dysfunction at Family Dollar. It took a deep-pocketed investor to step forward and make the change happen. Regardless of which company ultimately wins the merger battle, Family Dollar will be a different experience afterward for consumers.

Here's another big-name investor looking to cash in
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Sunday, December 21, 2014

A Few Reasons to Invest In This Consumer Goods Stock for the Long Run

Keurig Green Mountain (GMCR) announced 14% increase in fourth quarter of fiscal 2014 net sales to $1,195.6 million compared to fourth quarter of fiscal 2013 net sales of $1,047.2 million and exceeding the analyst's estimates of $1.16 billion, according to Zacks.

Keurig reported 9% increase in fourth quarter of fiscal 2014 non-GAAP net income of $148.8 million compared to $136.0 million of net income during the same quarter of last year. Non-GAAP diluted income per share increased 1% to $0.90 in fourth quarter of 2014 over $0.89 reported in the same period last year.

Strong financials and strategies

Keurig delivered solid free cash flow of $382 million during the quarter of fiscal year 2014 and returned approximately $1.2 billion of cash to shareholders by offering key dividends and through share repurchases.

Keurig successfully executed on all of its 2014 key strategic priorities and delivered robustly across its three main efforts. First, it launched Keurig 2.0 on time with significant partner and retailer support.

Second, Keurig successfully incorporated many new and formerly unlicensed brands into the Keurig brand and has currently signed several earlier unlicensed volumes. And finally, it remains well on track with several other launch plans and its Keurig Cold platform.

The long-term growth opportunity for Keurig Cold both globally and in North America is huge. The size of the cold beverages portfolio is believed to be over four times the size of the hot beverage portfolio driven by significant consumer interest. And, the timing for the launch of Keurig Cold beverages aligns well with the ongoing consumer preference trend for exclusive at-home experiences.

Goldman Sachs analyst Judy Hong refers the Keurig Cold to be a potentially "disruptive innovation" that has potential to accelerate considerable sales and enable profitable growth for Keurig in the years to come.

Moving ahead into 2015, Keurig system is forecasted to further make hot and cold beverages premium throughout North America, and across the world in a longer-term.

Keurig witnessed excellent growth in its company-owned brands; in entrenched partner brands, like Caribou, Lavazza, Eight O'Clock, Folgers and Starbucks; saw solid growth in non-coffee brands, like Swiss Miss, Bigelow, Tetley, Twinings, Snapple and Lipton; and several other fresh entrants such as Cafe Bustelo, Tea Leaf, Coffee Bean, Honest Tea and Peets all witnessed solid growth acceleration during the year.

According to the Thomson Reuters analyst, David Aurelio, Keurig has also partnered with Dunkin' Donuts (DNKN) and Starbucks (SBUX) which has enabled the former to dominate the single-serve coffee market.

Keurig's strategy to get aligned with some key beverage brands gives customers an added advantage and generates excellent growth for its shareholders, its partners and its customers.

Expansion plans

The introduction of Keurig 2.0 with significant retailer support is believed to be a major product launch in the company's history. Moreover, Keurig accelerated the innovation and launch of a range of three new Keurig 2.0 brewers in just one year. These results suggest the company's accelerated efforts towards robust brand image creation.

Keurig 2.0 system currently forms a key part of the offerings for 100% of its retailers including 100% of partner brands. Further, its Keurig system provides greater variety compared to any other in-home beverage system across the world.

Till March 2015, Keurig plans to offer over 70 brands and approximately 500 of the finest cocoas, teas, coffees and fruit beverages. Keurig's success is primarily based on its unique choice and variety offerings which are expected to continue to define the company's growth story.

Executing well upon the consumers key demands, Keurig introduced its 2.0 platform with numerous cup sizes and a carafe, having enhanced choices never introduced before. The company plans to add extra options in the coming months to please the consumers.

Moreover, Keurig declared new relationships with SUPERVALU, W.B. Mason, Meijer and Kraft during the quarter and started supplying Keurig-manufactured store brands to many new customers that include Sam's Club and Walmart.

KeyBanc's Akshay S. Jagdale reiterated a Buy rating for the Keurig stock and illustrated that the guidance was below the expectations primarily due to conservatism.

Further, Keurig's plan to introduce a home-use, carbonated beverage dispenser to successfully compete with its key rival Sodastream is estimated to be on track for 2015.

Conclusion

So, Keurig is engaged in smart strategies to grow the business, making it a good investment for the long run.


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Fine-Tune Your Finances Before You Travel Overseas

Couple in Paris taking pictures in front of Eiffel Tower Goodluz/Shutterstock When heading overseas, travelers often forget about the financial planning. Besides basic preparations, like making copies of your bank account and credit card information, there are some subtler financial measures that can potentially save you from myriad problems while abroad. 1. Notify Your Financial Institutions The money in your bank account has no significance if your account is frozen. Even the slightest deviation from your normal spending pattern can raise a red flag for a fraud department, which may result in your account becoming frozen or your credit card denied. Prevent this from happening by informing your bank and credit card companies about the location of your travels and the duration of your stay in the foreign country. 2. Set up Online Accounts An online bank account will give you added convenience and security over your funds while traveling overseas. With an online account, you can easily check your balances, transfer and deposit funds and stay on top of recent transactions. Setting up automatic payments can also help you pay bills on time and meet your financial duties while thousands of miles from home. 3. Have Multiple Forms of Payment Although the ideal form of payment depends on your travel destination and spending habits, it's a good idea to carry a variety of payment methods such as cash, debit cards and credit cards. It's also wise to have multiple bank accounts and credit cards – especially ones that are accepted internationally, such as Visa (V) and MasterCard (MA) for credit cards, and Chase (JPM) and HSBC (HSBC) for banks. Even if you're set on using one spending method for the majority of the trip, you should still carry the extra card with you. Also, it is crucial that you have the card you used to book the trip with you at all times, even if you don't intend on using it for foreign transactions. 4. Check Exchange Rates When traveling abroad, you should familiarize yourself with foreign currency and exchange rates to understand the value of a dollar. You can use an app, like Currency, to find out the latest exchange rates. Note that in addition to exchange rate conversion fees, you may encounter foreign exchange fees when converting money abroad. 5. Get a Travel Rewards Card With No Foreign Transaction Fees To find the right travel rewards card for you, first analyze your spending habits and travel pattern. Signing up for the right travel rewards credit card will get you a wide range of benefits and perks while traveling –- including no foreign transaction fees, which can help travelers who use credit cards as their main form of payment overseas. You can also rack up rewards points and miles for travel rewards or cash back. 6. Get an ATM Card from an Online Bank Signing up for a no-fee ATM card will give you the freedom to withdraw money without having to worry about racking up fees. Keep in mind that you don't necessarily have to change banks to avoid ATM fees overseas, as many banks will waive them for certain checking account holders. 7. Carry Cash, Too For Americans, U.S. dollars can be the most cost-effective form of payment, as you automatically save on any fees you would have to pay at a financial institution. Most vendors will also give you a fair exchange rate on the conversion from dollars to their local currency. Exchanging money at the airport may be convenient, but you'll pay for it with fees and expensive exchange rates. A better idea would be to withdraw the foreign currency through your bank or at an ATM machine upon arrival. And remember: No one turns down cash. Traveling with a couple hundred dollars worth of emergency cash is a smart decision in the event you can't access money. Just make sure to carry cash in small denominations, as it can be dangerous to flash large amounts of money in public.

Saturday, December 20, 2014

3 Healthcare Technologies That Are Set to Transform Our Lives Over the Next 10-20 Years

Source: Touch Bionics.

Cutting-edge technology could reshape healthcare over the coming 10-20 years, in the process curbing runaway spending and improving the lives of millions of patients. Which technologies might move the needle most? Three Motley Fool analysts offer insight into what they believe could have a transformative effect on the sector.

Leo Sun: One fascinating healthcare field to watch over the next few decades is prosthetic limb technology. Touch Bionics and Ottobock are among the companies that manufacture and install cutting-edge robotic hands and legs that can greatly improve quality of life for amputees.

Touch Bionics' i-limb hand reads electrical signals from a patient's remaining limb to control the hand's movements. Whereas these readings once could produce only a single grip pattern, the i-limb lets an amputee move all five fingers, allowing him or her to dial the phone or even type. Ottobock's C-Leg, which uses sensors to make real-time adjustments in the prosthetic knee and leg, lets amputees run and ride bicycles.

Meanwhile, a stretchable synthetic skin from a team of South Korean researchers could one day help amputees regain their sense of touch via ultra-thin "nano-wires." The skin, which must be connected to a patient's central nervous system, is still undergoing animal testing.

Looking even further ahead, scientists could eventually print out fully organic limbs. Last July, scientists at the University of Nottingham in England printed out "bones" by feeding the polymer polylactic acid and gel-like alginate through a 3D printer. The printer then coated the "bone" with adult stem cells, which could grow into tissue and muscle.

Combining all of these technologies could produce a huge leap forward in prosthetics, and allow doctors to seamlessly rebuild amputees' missing limbs.

Source: Dexcom.

Todd Campbell: Tackling the global spread of diabetes won't be easy, but technological advances such as next-generation glucose monitors could be a good place to start.

The number of people diagnosed with diabetes is set to soar from 365 million today to 552 million worldwide by 2030, and that will put significant pressure on the global healthcare system. According to a 2010 study from the International Diabetes Federation, global spending on diabetes will reach $490 billion per year in 2030. More important, the rising prevalence of diabetes means millions more people are likely to die from the disease. According to the American Diabetes Association, diabetes was the cause or a contributing cause in more than 234,000 deaths in the United States in 2010.

If we hope to halt or reverse those numbers, we'll need to approach patient care more holistically, and that could mean looking beyond drug therapies toward Dexcom's  (NASDAQ: DXCM  ) continuous glucose monitoring sensors. Those sensors track and trend glucose levels, and alert patients when levels reach certain levels. By more accurately monitoring and treating these levels, patients might delay disease progression. That, in fact, could already be happening. Dexcom's sales jumped 60% in the past year to $68 million in the third quarter. But there's much work still to be done. Industry watchers estimate less than half of type 1 diabetics and an even smaller percentage of type 2 patients use monitors or insulin pumps to manage their disease. 

Dan Dzombak: One healthcare technology that is set to transform our lives over the next 10-20 years is vastly cheaper blood testing.

Currently, traditional lab tests are handled by laboratory diagnostic companies such as Laboratory Corp. of America  (NYSE: LH  ) and Quest Diagnostics  (NYSE: DGX  ) . These companies use expensive, older technology to turn around blood samples in a few days -- at relatively high cost, as vials need to be transported to central testing centers.

Theranos, a private company, has developed a far less expensive lab test and charges at least 50% less than regular Medicare and Medicaid reimbursement rates. Theranos' test results are also turned around in hours rather than days and are less invasive, requiring just a prick of blood rather than a whole vial.

As the company's mission states, "Theranos is on a mission to make actionable health information accessible to people everywhere in the world at the time it matters, enabling early detection and intervention of disease, and empowering individuals with information to live the lives they want to live"

With significantly cheaper costs and easier access, blood tests could be conducted far more often to check for warning signs of diseases that currently are only screened for once every year or two. Catching diseases early generally lowers the cost of care and eases the difficulty of treatment.

While it will be a few years before the technology rolls out across the country, Theranos has teamed up with Walgreen  (NYSE: WAG  ) to launch testing centers, starting in California and Arizona and hopefully expanding to all of Walgreen's 8,100 drug stores.

1 great healthcare stock to buy for 2015 and beyond
Healthcare stocks soared in 2014, and 2015 is shaping up to be another great year for stocks. But if you want to make sure you're buying one of the best healthcare stocks, you need to know where to start. That's why The Motley Fool's chief investment officer just published a brand-new research report that reveals his top stock for the year ahead. To get the full story on this year's stock -- completely free -- simply click here.

Friday, December 19, 2014

The Debt Secrets Every Kid Should Know

Debt is a four-letter word, and your kids need to know it. The current public mood on debt ranges between loathing and fear. Nearly 20% of American adults expect to die with debts unpaid and a third of teens -- perhaps because they've seen their elders saddled with lifelong debts -- say taking on debt for college is "not worth it."

Too much debt is a disaster, no doubt. But a carefully handled loan can help a young person get a degree, and a healthy credit score is crucial to finding a place to live and even getting a job. Steer your kids in the right direction by teaching them these debt "secrets" and backing them up with practical experience.

Credit costs money
You and I know that credit isn't free, but kids need to understand that borrowing money is not like borrowing a classmate's pen -- unless that classmate charges a fee for lending out pens.

For younger kids and tweens, Northwestern Mutual's financial literacy site, TheMint, has a simple debt calculator to make this point. Kids can purchase fictional concert tickets, a vacation, a car, or textbooks on credit and see how much they'll really pay compared to the cash price.

Teenagers need a different spin on this lesson. They may know intellectually that credit costs money, but the allure of a shiny card is strong. I've found a quick way to cool off a credit-dazzled teen: Have him or her read a card application's fine print out loud to you -- especially the sections about interest rates, late fees, and rate hikes. Now it's not just you saying that credit costs money. They're getting it straight from the credit card issuer and hearing it in their own voice.

Debt can hang on after the thrill is gone
Brooklyn-based educational hip-hop video producer Flocabulary shares the sad tale of Melvin, who racks up credit card debt and wrecks his credit rating over Super Bowl tickets. Lana, meanwhile, does her credit card homework and spends carefully to avoid regret.

Image courtesy of Flocabulary

The clip shows kids they could be paying for a game, concert, or toy on credit long after they're over it. For teens, the takeaway is that badly managed credit card debt can hinder their independence by keeping them from getting their own place or car.

Borrow what you need, not what you can get
Make sure your kids understand that if they have good credit, lenders may be willing to offer them a bigger loan than they need, because the more they borrow, the more the lender makes on interest. For young kids, a good analogy is birthday cake. One slice is great, but eating the whole thing will make them sick. As Warren Buffett tells the readers of the Secret Millionaires Club, "Credit cards can seem like an easy way to buy things, but it's not a good idea to make a habit of using them. The chains of habit are too light to be felt until they're too heavy to be broken."

Teenagers can usually grasp the idea of keeping something back. For example, maybe you could get a loan to buy a high-end sports car. But if you take out a smaller loan for a compact car, you've got borrowing power in reserve for college loans or unforeseen emergencies down the road.

Real-life practice: Give your kid a loan
Whenever you hear, "Please! I swear I'll pay you back!" you have an opening for a learning experience. It's one thing to talk about debt. It's another to experience the feelings that come with paying month after month on a purchase. If you feel your kids are ready and their request is worthwhile, offer to spot them a loan -- with an interest rate, payment terms, and a penalty clause if they miss a payment.

Show them how much the loan will cost compared to the cash price. Put the payment schedule on your calendar so you don't accidentally teach your kids that repayment is optional. And lend only as much as they need.

Lending your kids money is not without risks. They may decide to go on a chore strike or be stricken with borrower's remorse. You may even have to temporarily repossess a computer, video game, or other item. But they'll be smarter consumers and better money managers because of the experience, and they'll see debt as a tool to be used carefully and not just as a four-letter word.

The smart way to get more income in retirement
Getting a part-time job is one way to increase your income in retirement, but it isn't the smart way. In a brand-new free report, our retirement experts explain a straightforward strategy that people are already using to secure an even more comfortable retirement. The method is so simple you'll be shocked you didn't think of it yourself. To access this free report instantly, simply click here now.

Thursday, December 18, 2014

3 Big Stocks to Trade (or Not)

BALTIMORE (Stockpickr) -- Put down the 10-K filings and the stock screeners. It's time to take a break from the traditional methods of generating investment ideas. Instead, let the crowd do it for you.

>>Buy These 5 Rocket Stocks to Beat the Market

From hedge funds to individual investors, scores of market participants are turning to social media to figure out which stocks are worth watching. It's a concept that's known as "crowdsourcing," and it uses the masses to identify emerging trends in the market.

Crowdsourcing has long been a popular tool for the advertising industry, but it also makes a lot of sense as an investment tool. After all, the market is completely driven by the supply and demand, so it can be valuable to see what names are trending among the crowd.

While some fund managers are already trying to leverage social media resources like Twitter to find algorithmic trading opportunities, for most investors, crowdsourcing works best as a starting point for investors who want a starting point in their analysis. Today, we'll leverage the power of the crowd to take a look at some of the most active stocks on the market today.

>>5 Blue-Chip Stocks to Trade for Gains

These "most active" names are the most heavily-traded names on the market -- and often, uber-active names have some sort of a technical or fundamental catalyst driving investors' attention on shares. And when there's a big catalyst, there's often a trading opportunity.

Without further ado, here's a look at today's stocks.

Micros Systems


Nearest Resistance: $68

Nearest Support: $67.80

Catalyst: Acquisition News

Shares of Micros Systems (MCRS) are up 3.4% this afternoon, following news that Oracle (ORCL) was planning on buying the mid-cap tech name for $68 per share. The news doesn't come as a total shock for shareholders of MCRS -- the rumor mill got this acquisition deal right earlier in the month, though the final numbers didn't hit until today.

Ultimately, the money has already been made on this name; shares of MCRS are sitting right below their $68 offer price this afternoon, a level that's acting like a fundamental resistance price for shares. If you didn't own MCRS before today, don't bother being a buyer here.

Oracle


Nearest Resistance: $42

Nearest Support: $40

Catalyst: MCRS Acquisition

The other side of the Micros Systems acquisition is Oracle, the enterprise software giant that's buying the smaller firm. Oracle's meaningful price action came at the end of last week with a conspicuous earnings miss. The miss was bad enough to shove shares down below the bottom of the uptrend that's been in play in shares since back in December.

Micros buy or not, Oracle's chart is broken right now.

Advanced Micro Devices


Nearest Resistance: $4

Nearest Support: $3.70

Catalyst: Analyst Downgrade

Chip company Advanced Micro Devices (AMD) is down for a second straight day today, off just over 3% this afternoon following an analyst downgrade. AMD got sold off on Friday following news that high graphics card inventories could hamper sales in the quarter ahead, but today's downgrade by Pacific Crest is adding insult to injury for this mid-cap processor maker. Pacific Crest lowered AMD to "underperform".

Technically speaking, AMD is in "make or break mode" right now. Shares have been bouncing their way higher in a well-defined uptrend, but today's drop is threatening a breakdown below trendline support. If shares close below that lower trendline, it makes sense to join the sellers.

To see these stocks in action, check out the at Most-Active Stocks portfolio on Stockpickr.



-- Written by Jonas Elmerraji in Baltimore.


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At the time of publication, author had no positions in the names mentioned.

Jonas Elmerraji, CMT, is a senior market analyst at Agora Financial in Baltimore and a contributor to

TheStreet. Before that, he managed a portfolio of stocks for an investment advisory returned 15% in 2008. He has been featured in Forbes , Investor's Business Daily, and on CNBC.com. Jonas holds a degree in financial economics from UMBC and the Chartered Market Technician designation.

Follow Jonas on Twitter @JonasElmerraji