Coca-Cola in Hot Water Over Offensive Phrase on Bottle Cap

Blake Loates/Facebook Sting may have sung about a "Message in a Bottle," but he likely never expected the phrase that Blake Loates found on a bottle of Vitamin Water -- "You Retard." The words were printed on the inside of the cap on a bottle of Vitamin Water, which Loates bought while dining out in Edmonton, Canada, where she lives. Loates found the phrase particularly offensive because her younger sister, Fiona, has cerebral palsy and autism. "We immediately thought 'You have got to be kidding me,' " she told Huffington Post Alberta. The message was part of a promotion by Coca-Cola (KO) in Canada that randomly paired English and French words that together were supposed to make up funny gibberish phrases. But the words were only vetted in French, not English, reports Milwaukee's Journal Sentinel newspaper. "Retard" in French means late or delayed. Loates sent a photo of the bottle cap to her father, Doug Loates, who wrote a letter to Coca-Cola to complain about including "retard" as part of the promotion. (See the complete letter below.) "Not everyone in Canada speaks French -- like my daughter, Blake," Loates wrote to Coca-Cola officials. "The 'R' word is considered a swear word in our family. We don't use it. We don't tolerate others using it around us. We are over-sensitive, but you would be too if you had Fiona for a daughter! Can you imagine if she had opened this bottle???" Loates said that he had been drinking Coke since he was 9 and got his first newspaper route, but now calls himself an "ex-Coke drinker." The soft drink company said it never intended to offend anyone.

444% Increases - Billionaires on Gold Mines

Here's a look at three gold mining companies on a 52-week low. The companies selected are more than 65% off a 52-week high.

Billionaires can afford to hold these mining companies for five years of losses without a sting to the wallet and the sheer number of billionaires holding these gold companies is a compelling-enough statement. But in second quarter trading, two Guru investors upped their stakes in two of today's featured companies more than 444%, making us wonder: Is it hope, is it seasoned neutrality, or is there reason to believe these companies could be on the verge of a big pay day?

Industry Sector: Metals and Mining

The metals & mining sector currently has 30 companies out of 174 on a 52-week low. The low ratio is 0.17.

Anglogold Ashanti Limited (AU)

Down 65% over 12 months, Anglogold Ashanti Limited has a market cap of $4.85 billion, and trades with a P/E of 8.10.

The current share price is around $12.70, or 65.6% off the 52-week high of $36.93. The yield is 2.10%.

Anglogold Ashanti Limited is a gold exploration, mining and marketing company with a portfolio of operations and projects on four continents. The company is headquartered in Johannesburg, South Africa, and has 21 operations in 10 countries. Major development projects include: Tropicana located in Australia; Kibali in the Democratic Republic of the Congo (DRC) and La Colosa in Colombia. The company's exploration programs extend to 12 countries, in both established and new gold-producing regions.

The company reported financial results for the three months ended June 30, 2013 with production of 935,000 oz., as a 4% increase over production in the first quarter of 2013. The company's adjusted gross profit for the quarter was $231 million compared to $$658 million year-over-year.

Guru Action: As of June 30, 2013, there are eleven guru stakeholders and insider buying.

The top Guru stakeholder is John Paulson who reduced his position by 1.13%, selling 319,450 shares ! at an average price of $18.03 per share, for a loss of 29.6%. He currently holds 27,935,500 shares or 7.25% of shares outstanding. The holding is 2.8% of his total assets managed.

The biggest AU news of second quarter is that Jean-Marie Eveillard's First Eagle Investment Management increased its position by 444.51%, buying 21,981,524 shares at an average price of $18.03 per share for a loss of 29.6%.

Track share pricing, revenue and net income:

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Richmont Mines Inc. (RIC)

Down 70% over 12 months, Richmont Mines Inc. has a market cap of $56.23 billion, and trades with a P/B of 0.60.

The current share price is around $1.42, or 74.2% off the 52-week high of $5.50. The yield is 0.00%.

First incorporated in Quebec in 1981 under the name Resources Minieres Rouyn Inc., Richmont Mines Inc. is engaged in the acquisition, exploration, operation, financing, and development of mineral properties. The company began its exploration activities in northwestern Quebec in the spring of 1984.

The company reported financial results (reported in Canadian currency, unless otherwise noted) for the three months ended June 30, 2013 with: Revenues for the second quarter of 2013 at $17.8 million, down 25% from revenues of $23.7 million in the second quarter of 2012, reflecting a 12% decrease in the number of gold ounces sold, and a 14% decrease in the average gold price obtained in Canadian dollars. A total of 12,826 ounces of gold were sold at an average price of $1,389 ($1,367 USD) per ounce in the current quarter, versus gold sales of 14,611 ounces and an average realized sales price of $1,617 ($1,618USD) per ounce in the comparable period last year. The reported a net loss of $1.1 million, or $0.03 per share, in the second quarter of 2013, versus a net loss from continuing operations of $2.9 million, or $0.09 per share in the second quarter of 2012, according to a company press relea! se.

Guru Action: As of June 30, 2013, there are three guru stakeholders and active insider trading.

The top Guru stakeholder is Jim Simons who increased his position by 6.81%, buying 136,100 shares at an average price of $1.93 per share, making a loss of 26.4%. He currently holds 2,135,100 shares or 5.39% of shares outstanding.

In five years of holding there is not one gaining quarter. Simons has averaged a loss of 77% on 2,769,700 shares bought at an average price of $6.17 per share. He also averaged a loss of 63% on 634,600 shares sold at an average price of $3.79 per share.

Charles Brandes made a new buy as of June 30, 2013. He bought 13,696 shares at an average price of $1.93 for a loss of 26.4%.

Track share pricing, revenue and net income:

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Buenaventura Mining Company Inc. (BVN)

Down 70% over 12 months, Buenaventura Mining Company Inc. has a market cap of $2.95 billion, and trades with a P/E of 6.70.

The current share price is around $11.65, or 70.9% off the 52-week high of $40.09. The yield is 4.13%.

Located in Peru, Buenaventura Mining Company Inc. is a publicly-traded precious metals company, mainly producing refined gold and silver, either as dore bars or concentrates. The company is engaged in the exploration, mining and processing of gold, silver and, to a lesser extent, other metals such as lead, zinc and copper as concentrates.

The company reported financial results (in U.S. currency) for the three months ended June 30, 2013 with a net income of $19 million, 88% lower than $153.2 million for the same quarter in the previous year. EBITDA was reported as $40.3 million, 65% lower than $114.6 million in the same quarter a year ago, according to a company press release.

Guru Action: As of June 30, 2013, there are four guru stakeholders and no insiders trading.

The top Guru stakeholder Jeremy Grantham increased his position by 4! 0.36%, bu! ying 1,689,982 shares at an average price of $19.50 per share, for a loss of 40.3%. He currently holds 5,877,252 shares or 2.31% of shares outstanding. In five years of holding, his trading history shows every quarter with a double-digit loss.

Guru Jim Simons increased his position by 444.21% in the second quarter, buying 1,323,300 shares at an average price of $19.5 for a 40.3% loss.

Over five years, he has averaged a loss of 60% on 3,320,900 shares bought at an average price of $29.09 per share. He has averaged a loss of 55% on 5,687,500 shares sold at an average price of $26.05 per share.

Track share pricing, revenue and net income:

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Government Shutdown Threatens Growing U.S. Wealth

U.S. households are getting wealthier and earning more, but the threatened government shutdown puts that good news in jeopardy.

While this week’s economic data sheds new light on the growing net worth of U.S. families along with a rise in personal income, analysts fear that brinkmanship in Washington over the debt ceiling and “Obamacare” threatens that growth.

“A shutdown would slow the expansion because output lost when workers are furloughed subtracts from gross domestic product,” wrote Jeanna Smialek and Ian Katz in a Bloomberg analysis on Friday. “The combined prospect of a budget standoff between the White House and Congress and haggling over the debt ceiling could have a bigger impact on the economy as businesses hold off on investment and households delay spending.”

Frank Fantozzi, CEO of Planned Financial Services, a Cleveland, Ohio-based firm affiliated with LPL, agreed that U.S. GDP could take a hit if the government shuts down.

“If the government stops spending money, it will bring down GDP, and this is a concern that the Federal Reserve has raised,” Fantozzi said in a phone interview on Friday. “One of the reasons the Fed has cited is that because GDP is 2% or a little less, we’re approaching a stall rate. If the government shuts down and they can’t put money into the system, the fear is that paltry GDP rate will go to nothing and the economy will stall.” “Theoretically that can happen, though I have my reservations that we’ll see a government shutdown that puts us over the cliff.”

Shutdown Casts Gloom on Sunny Income and Net Worth Data

The U.S. Bureau of Economic Analysis reported Friday that personal income in August increased $57.2 billion, or 0.4%, as personal consumption expenditures increased $34.5 billion, or 0.3%. Private wages and salaries, meanwhile, increased $28.5 billion in August.

Further, on Wednesday, the Federal Reserve reported that household net worth was $74.8 trillion at the end of the second quarter, about $1.3 trillion more than at the end of the first quarter — putting it at the highest level since the Fed began keeping records in 1945.

But now, brinkmanship is back, and with the defunding of President Barack Obama’s Affordable Care Act brought into the budget debate, Bank of America Merrill Lynch global economist Ethan Harris believes that a government shutdown is more likely now than during the 2011 debt ceiling debate.

Until recently, the economists at BofA-Merrill had been cautiously optimistic about a replay of the spring, but last week, they raised the probability of a shutdown in the next several months to 30% from 15%.

“After a welcome hiatus, brinkmanship battles have returned to Washington,” Harris wrote in a comment published Friday. “Now two new battles loom: there needs to be a continuing resolution by the end of this month and the debt ceiling needs to be raised sometime in mid-to-late October.”

‘We Can’t Entirely Rule Out a Shutdown Next Week’

Harris predicts that the latest drama in Washington could come to a climax over the weekend, when he expects the Senate to pass a “clean” continuing resolution that doesn’t include the defunding of Obamacare. That would put the ball back in the House’s court, and the House might decide to pass the Senate bill and postpone the fight for later when the debt ceiling approaches, Harris wrote. Or, he surmised, the House may propose a different, less aggressive limit on the health care law such as postponing the individual mandate a year and send that back to the Senate.

Here’s the bad news, according to Harris: “The Senate would then almost certainly reject that bill. This back and forth will likely continue until time runs out. Our base case is that the House decides to delay the real fight for the debt ceiling, but we can’t entirely rule out a brief shutdown next week.”

Morgan Stanley analysts Vincent Reinhart and Ellen Zentner add to the gloom with their prediction of a one-in-four chance of a shutdown — just as U.S. consumers are finally getting on their feet.

“Only in the past three months has consumer confidence in the U.S. finally reached a level considered historically 'normal' in recovery,” Zentner wrote in a note to clients titled “Households Finally ‘Feel’ the Economy.” Yet in her report with Reinhart, Zentner said there would be a direct arithmetic impact on GDP from a shutdown.

“Compensation of nondefense employees and civilian defense employees makes up about one-fifth of real federal spending and about 1.5% of GDP. Eliminate a third of that in a shutdown as nonexempt workers stay home, and GDP is haircut 0.5%,” Zentner and Reinhart wrote. “Annualized, this reduces quarterly GDP growth by around 0.15 percentage points per week of shutdown. Even if ex post legislation makes up the missed pay and therefore avoids a hit to personal income, the real numbers will be gone for good because the hours worked will not be made up.”

A shutdown would mean more than just a furlough of all but essential government employees, OppenheimerFunds Chief Economist Jerry Webman wrote in a Sept. 3 comment, “When Doves Cry.” It would mean a billion-dollar hit to the U.S. economy, Webman warned.

“Shutdowns can affect hundreds of thousands of workers and contractors, not to mention civilians awaiting approval of various government applications (including small business loans), businesses that rely on tourism, and so on,” Webman wrote. “The costs of past government shutdowns to taxpayers and private businesses have extended into the billions of dollars. So, although the conventional wisdom may be that a shutdown is no big deal, it is something that the economy just doesn’t need right now.”

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Check out Head Start, Meals on Wheels Among Programs Bruised by Budget Impasse on ThinkAdvisor.

RIAs the busy beavers in M&A

Registered investment advisory firms continue to be the most active players in the mergers-and-acquisitions game, according to Pershing Advisor Solutions LLC’s latest analysis of M&A trends in the financial services industry.

RIAs’ buying other RIAs accounted for 58% of deals so far in 2013, up from 37% last year, while aggregator firms were involved in just 25% of deals during the first half, down from 32% in the second half of 2012 and 28.9% for all of last year, according to the report.

The adviser unit of Pershing LLC tracks retail-focused RIA firms with $50 million or more in assets or $500,000 or more in annual revenues.

Driving RIA-RIA transactions is the desire to access to new markets, the Pershing research found, in addition to acquiring new capabilities and facilitating a succession in ownership.

RIA firms continue to be dominant buyers because they’re “doing transactions to penetrate new markets, solve for succession and add talent capabilities,” agrees David DeVoe, managing partner at DeVoe & Co. LLC, a consultant.

“RIA-to-RIA deals generally tell the 1+1 = 3 story,” he said.

“RIAs are getting better at it, and more sophisticated about it,” added John Furey, founder of Advisor Growth Strategies LLC, a consulting firm.

And “there are just more RIA buyers than consolidators,” he said.

In addition, aggregators face some disadvantages in attracting acquisition candidates, said Mark Tibergien, chief executive officer of Pershing Advisor Solutions.

“This is a business that lends itself to active owners rather than passive owners,” Mr. Tibergien said. “While there will always be consolidators and aggregators that do well, a lot of [RIA] sellers are reluctant to go that route” and give up income and possibly some control.

An earlier M&A analysis from Schwab Advisor Services found a similar trend toward all-RIA deals.

RIAs remained the dominant buyer category for the second straight quarter, according to Schwab, accounting for half of the deals this year through June. Aggregator firms, or strategic acquirers as Schwab calls them, accounted for 39% of transactions.

Since 2006, RIA firms and aggregators have each accounted for 30% to 40% of transactions, according to Schwab.

One reason for more RIA-to-RIA transactions might be that the RIA affiliates of the strategic acquirers are making acquisitions, which Schwab counts as separate RIA deals, Jonathan Beatty, senior vice president of sales and relationship management at Schwab Advisor Services, said through a spokeswoman.

In terms of numbers of transactions, activity is ! sluggish so far this year.

Pershing counted 12 transactions in the first half, down from the 16 in the comparable period last year.

The most recent six-month total was three fewer than occurred in the fourth quarter of 2012, when deals were rushed to completion in anticipation of more favorable tax treatment prior to potential rule changes, Pershing said.

Pershing found that RIA mergers tend to be driven by profitability — as financials improve, more deals get done. Transactions dipped in 2011 (32 deals) as RIA profit margins fell to 14.2%, but bounced back last year (38) as margins grew to 20.5%.

Schwab counted just 18 transactions in the first half, the lowest levels the firm has seen since the first half of 2008.

In an earlier interview, Mr. Beatty chalked up the slow deal pace to strong markets that have kept advisers busy focusing on organic growth over deal-making.

Smaller firms, the ones most likely to sell out, were especially hard hit by the financial crisis, Mr. Tibergien said, and see the current market cycle as “a great opportunity to recoup what lost … and show [a better] earnings history” for a potential buyer.

Twitter Files Confidential IPO with SEC, Publicizes on Twitter

This story has been updated with additional information on Twitter's business.

NEW YORK (TheStreet) -- Twitter, the popular micro-blogging site, is filing for an initial public offering of its stock on Thursday. The company took to its own network to make the announcement, after months of speculation by media, Wall Street and investors.

"We've confidentially submitted an S-1 to the SEC for a planned IPO. This Tweet does not constitute an offer of any securities for sale," Twitter said at about 5 p.m. EST on Thursday.

In a follow-up tweet, Twitter then said, "Now, back to work," and linked to a photo of the company's offices. Unlike a traditional filing disclosed to public investors, companies like Twitter with revenue less than $1 billion in their most recent fiscal year can submit S-1 IPO filings confidentially with the Securities and Exchange Commission under the Jumpstart Our Business Startups, or JOBS Act. Twitter may have filed confidentially with the SEC as a means to gain feedback on its financial reporting without having to make a series of public amendments, Beth Saunders, Americas chairman of FTI Consulting's Strategic Communications practice, said in a telephone interview. The confidential filing and subsequent announcement on Twitter also proved to be a good marketing opportunity. "I think there is a good marketing pop and they got it," Saunders said. While details remain unclear, Twitter's pending IPO will likely be the most watched listing since Facebook's (FB) blockbuster May 2012 share sale. eMarketer projected in March that Twitter will earn $582.8 million in global ad revenue in 2013 before nearing $1 billion next year, with the majority of the company's growth coming from mobile users. TheDeal's Jon Marino reported in August that a shareholder pegged Twitter's market capitalization at about $12 billion. That source suggested Twitter's valuation would rise, but not past $15 billion, by the time it listed on public markets. "Twitter's not going to try and take every last dime off the table in [IPO] pricing," a source said. Twitter has ramped up its revenue and is expected to exceed $1 billion in advertising revenue, a source also told Marino. Twitter's true potential may lie in yet-undeveloped verticals, that source said. In September, Twitter said it would buy online mobile-ad exchange MoPub for $350 million, according to media reports. CNBC reported on Thursday that Goldman Sachs (GS) will lead the offering. Other investment banks are likely to be added to Twitter's IPO book as the company moves towards a listing. Earlier in 2013, Twitter hired Morgan Stanley's (MS) Cynthia Gaylor to head up its corporate development. Stock sales in Twitter by early stage VC's Spark Capital and Union Square Ventures have sold at a substantial discount to a $12 billion valuation used in some recent private transactions. Other private stock sales have been in the $10.5 billion to $11.5 billion range. Shares in GSV Capital (GSVC), an investment fund listed on Nasdaq that owns a stake in Twitter worth $36.7 million, as of June 30, jumped over 15% in after-hours trading on the company's IPO announcement. Firsthand Technology Value Fund (SVVC), a closed-end fund with about 10% of its assets in Twitter stock also rose sharply. Both companies could prove to be an interesting proxy on investor interest in Twitter's IPO. Twitter calls itself a "real-time information network" that connects to stories, ideas, opinions and news about what users find interesting. Each Tweet is 140 characters long, but allows users to include photos, videos and hyperlinks. The company also recently developed Vine, a micro video blogging service. The company is increasingly becoming a power player in the media, advertising and political arenas. Communication on Twitter has been at the heart of social protest such as the Occupy Wall Street movement in the U.S. and uprisings in countries such as Egypt, Libya and Turkey. The social network has become entrenched in the U.S. electoral process and it has even been at the center of political blow-ups such as the downfall of former New York Congressman Anthony Weiner. For many, Twitter has turned into an essential piece of the news gathering networks, akin to an interactive newswire. When tragedy strikes, such as at the most recent Boston Marathon, Twitter has even been used by emergency professionals and local authorities as a means of ensuring public safety. The company has also increased its focus on advertising in recent launches such as so-called 'promoted' tweets. As the company moves towards an IPO, there's great anticipation about Twitter's value as an advertising platform, especially as media consumers increasingly receive content on mobile devices. Jim Prosser, a Twitter spokesperson, declined to provide comment for this article. The Deal: Twitter Sets Up Revenue Streams Prior to IPO #ftw -- Written by Antoine Gara and Jon Marino in New York. Follow @antoinegara

Wells Fargo Downgrades Travelers Co. to “Market Perform” (TRV)

Travelers Companies Inc (TRV) was downgraded by analysts at Wells Fargo on Thursday, as they believe shares of the insurance provider will lose some steam going forward.

The analysts downgraded TRV from “Outperform” to “Market Perform” and see shares reaching a valuation range of $89-$92, down from the previous target range of $94-$98. This new price target range suggests a 6% to 10% upside to the stock’s Wednesday closing price of $83.73.

Furthermore, the analysts note that TRV is up 41% since they started recommending the stock in January 2012, versus a 32% gain for the S&P 500. “Travelers has been a leader in gaining commercial lines renewal rate increases utilizing a disciplined, segmented approach. Yet as TRV reaches rate adequacy across more of its segmentation bands, we think there is less profit leverage, which could slow multiple expansion going forward.”

Travelers shares were inactive during pre-market trading on Thursday. The stock is up 16.58% year-to-date.

Freddie Mac: Mortgage Loan Rates Pulling Back

In its weekly Primary Mortgage Market Survey, home lending giant Freddie Mac reported that mortgage rates for fixed-rate loans have pulled back a little following five weeks of increases.

The interest rate on a 30-year fixed-rate mortgage fell from a prior week average of 4.58% to 4.51%, still well above the rate of 3.59% in the same week a year ago.

One year ago the 15-year fixed-rate mortgage rate stood at 2.86%. That rate also fell this week, from 3.5% last week to 3.39%.

The interest rate on a 5-year Treasury hybrid adjustable-rate mortgage loan rose from 3.21% a week ago to 3.24%, and is up from 2.78% in the same week a year ago. The 1-year Treasury-indexed adjustable-rate mortgage loan interest rate also slid, from 2.67% in the prior week to 2.64%. The 1-year rate averaged 2.63% a year ago.

According to Wednesday's data from the Mortgage Bankers Association, new loan applications slipped 2.5% last week, as refinancings fell to 60% of all applications. Rising housing prices, low inventory, and rising mortgage loan rates are conspiring to keep the housing market recovery at a slow, but steady pace.

Will RadioShack Stock Benefit from This Move?

With shares of RadioShack (NYSE:RSH) trading near $3, is RSH an OUTPERFORM, WAIT AND SEE or STAY AWAY? Let's analyze the stock with the relevant sections of our CHEAT SHEET investing framework:

T = Trends for a Stock’s Movement

RadioShack is engaged in the retail sale of consumer electronics goods and services through its RadioShack store chain. The company operates in two segments, U.S. RadioShack company-operated stores and Target Mobile centers. The U.S. RadioShack company-operated stores segment offers a number of wireless communications, computers, tablets, e-readers, home electronics, and other related products. The Target Mobile centers segment offers wireless handsets with activation of third-party postpaid wireless services. RadioShack operates stores throughout the United States, Puerto Rico, and the U.S. Virgin Islands.

On Thursday, RadioShack shares were down severely after a report that the company is thinking about hiring a financial adviser to aid in repairing its balance sheet. Sources told trade publication Debtwire that RadioShack plans to accept offers for a financial adviser in the coming weeks to examine a possible a balance sheet fix while it faces a series of debt maturities, escalating cash burn, and swollen inventory levels. Consumer electronics will always have their place in American homes, and if RadioShack can repair its business, it stands to see consistent profits.

T = Technicals on the Stock Chart are Weak

RadioShack stock has been on a severe decline over the past several years. The stock is currently experiencing a fair amount of volatility on recent news. Analyzing the price trend and its strength can be done using key simple moving averages. What are the key moving averages? The 50-day (pink), 100-day (blue), and 200-day (yellow) simple moving averages. As seen in the daily price chart below, RadioShack is trading slightly below its key averages, which signals neutral to bearish price action in the near term.

(Source: Thinkorswim)

Taking a look at the implied volatility and implied volatility skew levels of RadioShack options may help determine if investors are bullish, neutral, or bearish.

	Implied Volatility (IV)	30-Day IV Percentile	90-Day IV Percentile
RadioShack Options	207.72%	90%	93%

What does this mean? This means that investors or traders are buying a significant amount of call and put options contracts, as compared to the last 30 and 90 trading days.

	Put IV Skew	Call IV Skew
August Options	Steep	Average
September Options	Steep	Average

As of Friday, there is an average demand from call buyers or sellers and low demand by put buyers or high demand by put sellers, all neutral to bearish over the next two months. To summarize, investors are buying a significant amount of call and put option contracts and are leaning neutral to bearish over the next two months.

On the next page, let’s take a look at the earnings and revenue growth rates and the conclusion.

E = Earnings Are Decreasing Quarter-Over-Quarter

Rising stock prices are often strongly correlated with rising earnings and revenue growth rates. Also, the last four quarterly earnings announcement reactions help gauge investor sentiment on RadioShack’s stock. What do the last four quarterly earnings and year-over-year revenue growth figures for RadioShack look like and, more importantly, how did the markets like these numbers?

	2013 Q1	2012 Q4	2012 Q3	2012 Q2
Earnings Growth (Y-O-Y)	-437.50%	-634.57%	-470.00%	-187.50%
Revenue Growth (Y-O-Y)	-7.04%	-6.55%	-3.06%	1.20%
Earnings Reaction	0.95%	0.32%	7.53%	-28.76%

RadioShack has seen decreasing earnings and revenue figures over the past four quarters. From these numbers, the markets have been a bit optimistic about RadioShack’s recent earnings announcements.

P = Excellent Relative Performance Versus Peers and Sector

How has RadioShack stock done relative to its peers Best Buy (NYSE:BBY), Aaron’s (NYSE:AAN), Wal-Mart (NYSE:WMT), and sector?

	RadioShack	Best Buy	Aaron’s	Wal-Mart	Sector
Year-to-Date Return	31.60%	146.58%	6.08%	13.69%	18.62%

RadioShack has been a relative performance leader, year-to-date.

Conclusion

RadioShack is a consumer electronics retailer that operates in the United States and its regions. The company is said to be looking to hire a financial adviser that will help straighten out its balance sheet. The stock has not done well over the past couple of years and is now experiencing some volatility. Over the last four quarters, earnings and revenue figures have been decreasing, although the markets have been optimistic about recent earnings announcements. Relative to its peers and sector, RadioShack has been a year-to-date performance leader. WAIT AND SEE what RadioShack does in coming quarters.

Top Dividend Stocks To Watch For 2014

LONDON: The�FTSE 100� (FTSEINDICES: ^FTSE  ) dipped early this morning, despite the news that the U.K. economy has so far avoided a triple-dip recession by growing 0.3% in the first quarter of the year. But sentiment seems to have settled after the index was shaken by a couple of disappointing results, and the FTSE is now 11 points up on the day, to 6,442.

So which big companies have held the FTSE back today? We take a look:

Unilever
Unilever� (LSE: ULVR  ) shares fell 55p (1.9%), to 2,790p, after a first-quarter update told us of�lower-than-anticipated sales in Europe. Double-digit growth in emerging markets did, however, help drive underlying sales up 4.9%. And the firm was happy enough with these figures to lift its quarterly dividend by 10.7% to 26.9 euro cents per share.

Top Dividend Stocks To Watch For 2014: Integrys Energy Group(TEG)

Integrys Energy Group, Inc., through its subsidiaries, operates as a regulated electric and natural gas utility company in the United States and Canada. It provides natural gas utility services in Chicago, Wisconsin, Michigan, and Minnesota. As of December 31, 2009, the company served approximately 1,669,000 residential, commercial and industrial, transportation, and other customers. It had approximately 22,000 miles of natural gas distribution mains; and approximately 1,010 miles of natural gas transmission mains. The company also generates and distributes electric energy form coal, natural gas, fuel oil, hydroelectric, and wind resources in Wisconsin and Michigan. It served approximately 489,000 residential, commercial and industrial, wholesale, and other customers. In addition, Integrys Energy offers nonregulated energy supply and services; and electric transmission services. The company was formerly known as WPS Resources Corporation and changed its name to Integrys En ergy Group, Inc. in February 2007. Integrys Energy Group, Inc. was founded in 1883 and is based in Chicago, Illinois.

Top Dividend Stocks To Watch For 2014: Cross(A.T.)

A.T. Cross Company engages in the design and marketing of personal and business accessories. It operates in two segments, Cross Accessory Division (CAD) and Cross Optical Group (COG). The CAD segment manufactures and markets writing instruments under the Cross brand, including ball-point pens, fountain pens, selectip rolling ball pens, mechanical pencils, and writing instrument accessories, such as refills and desk sets. It also provides various personal and business accessories, including leather goods, reading glasses, watches, desk sets, cufflinks, and stationery. This segment sells its products through direct sales force and manufacturers' agents or representatives to approximately 2,400 retail and wholesale accounts; and directly to consumers through its Web site, cross.com, and the Cross retail stores in the United States, as well as through distributors and retailers worldwide. The COG segment designs, manufactures, and markets polarized sunglasses and goggles under the Costa and Native brnads in the United States. This segment sells its products through employee representatives and manufacturers? agents to optical and sunglass specialty shops, department stores, and sporting goods retailers in the United States. A.T. Cross Company was founded in 1846 and is headquartered in Lincoln, Rhode Island.

Top Growth Companies To Watch In Right Now: Illinois Tool Works Inc.(ITW)

Illinois Tool Works Inc. manufactures a range of industrial products and equipment worldwide. The company?s Transportation segment offers metal and plastic components, fasteners, and assemblies; fluids and polymers; fillers and putties; polyester coatings, and patch and repair products; and truck remanufacturing and related parts and service. Its Industrial Packaging segment offers steel and plastic strapping and related tools and equipment; plastic stretch film and related equipment; paper and plastic products that protect goods in transit; and metal jacketing products. The company?s Food Equipment segment provides warewashing, cooking, refrigeration, and food processing equipment; and kitchen exhaust, ventilation, and pollution control systems. Its Power Systems & Electronics segment provides arc welding equipment; metal arc welding consumables; metal solder materials for PC board fabrication; equipment and services for microelectronics assembly; electronic components an d component packaging; and airport ground support equipment. The company?s Construction Products segment offers anchors, fasteners, and related fastening tools for wood, metal, and concrete applications; metal plate truss components, and related equipment and software; and packaged hardware and other products for retail. Its Polymers & Fluids segment provides adhesives, chemical fluids, epoxy and resin-based coating products, hand wipes and cleaners, and pressure-sensitive adhesives and components. The company?s Decorative Surfaces segment offers laminate for furniture, office and retail space, and countertops; and laminate flooring and worktops. In addition, the company offers plastic reclosable packages and bags, and consumables; plastic and metal fasteners, and components; foil and film products; product coding and marking, paint spray, and static and contamination control equipment; and swabs and mats. The company was founded in 1912 and is based in Glenview, Illinois. Advisors' Opinion:

• [By Dave Friedman]

  The shares closed at $45.29, up $0.2, or 0.44%, on the day. They have traded in a 52-week range of $40.33 to $59.27. Volume today was 5,269,092 shares, against a 3-month average volume of 4,022,400 shares. Its market capitalization is $22.26billion, its trailing P/E is 11.96, its trailing earnings are $3.79 per share, and it pays a dividend of $1.44 per share, for a dividend yield of 3.20%. About the company: Illinois Tool Works Inc. designs and manufactures fasteners and components, equipment and consumable systems, and a variety of specialty products and equipment. The Company’s products include industrial fluids and adhesives, tooling for specialty applications, welding products, and quality measurement equipment and systems. Illinois Tool Works operates worldwide.

Top Dividend Stocks To Watch For 2014: Capital Bank Corporation(CBKN)

Capital Bank Corporation operates as the holding company for Capital Bank that provides general commercial banking products and services in North Carolina. Its deposit products include checking, savings, negotiable order of withdrawal, money market, and individual retirement accounts, as well as certificates of deposit. The company?s loan products portfolio comprises loans for real estate, construction, businesses, agriculture, personal use, home improvement, and automobiles, as well as equity lines of credit, mortgage loans, credit loans, consumer loans, and credit cards. It also offers safe deposit boxes, bank money orders, Internet banking services, traveler?s checks, and notary services, as well as electronic funds transfer services, including wire transfers and remote deposit capture. In addition, the company provides automated teller machine access to its customers; and a line of uninsured investment products and services. It operates 32 branch offices in North Carol ina, including 5 in Raleigh, 4 in Asheville, 4 in Fayetteville, 3 in Burlington, 3 in Sanford, 2 in Cary, and 1 each in Clayton, Graham, Hickory, Holly Springs, Mebane, Morrisville, Oxford, Pittsboro, Siler City, Wake Forest, and Zebulon. The company was founded in 1997 and is headquartered in Raleigh, North Carolina. Capital Bank Corporation is a subsidiary of North American Financial Holdings, Inc.

Top Dividend Stocks To Watch For 2014: 3M Company(MMM)

3M Company, together with subsidiaries, operates as a diversified technology company worldwide. The company?s Industrial and Transportation segment offers tapes, coated and non-woven abrasives, adhesives, specialty materials, filtration products, energy control products, closure systems for personal hygiene products, acoustic systems products, and components and products that are used in the manufacture, repair, and maintenance of automotive, marine, aircraft, and specialty vehicles. Its Health Care segment provides medical and surgical supplies, skin health and infection prevention products, inhalation and transdermal drug delivery systems, dental and orthodontic products, health information systems, and food safety products. The company?s Display and Graphics offers optical film solutions for LCD electronic displays; computer screen filters; reflective sheeting for transportation safety; commercial graphics sheeting and systems; and mobile interactive solutions, includin g mobile display technology, visual systems products, and computer privacy filters. The company?s Consumer and Office segment provides office supply products, stationery products, construction and home improvement products, home care products, protective material products, certain consumer retail personal safety products, and consumer health care products. Its Safety, Security and Protection Services segment offers personal protection products, safety and security products, cleaning and protection products for commercial establishments, track and trace solutions, and roofing granules for asphalt shingles. The company?s Electro and Communications segment provides packaging and interconnection devices; fluids that are used in the manufacture of computer chips, and for cooling electronics and lubricating computer hard disk drives; high-temperature and display tapes; insulating materials, including tapes and resins; and related items. The company was founded in 1902 and is based in St. Paul, Minnesota.

Advisors' Opinion:

• [By Elmerraji]

  3M Company (MMM), together with subsidiaries, operates as a diversified technology company worldwide. The company has raised distributions for 53 years in a row. The 10 year annual dividend growth rate is 6.10%/year. The last dividend increase was 4.80% to 55 cents/share. Analysts are expecting that 3M will earn $6.33/share in 2012. I expect that the quarterly dividend will be raised to 57.50 cents/share sometime in 2012. Yield: 2.60%

• [By Victor Mora]

  3M provides technology solutions and services to companies participating in a multitude of industries worldwide. The stock is seeing an explosive move higher which has taken it to all-time high prices. Earnings and revenue figures have been increasing over most of the last four quarters, producing mixed feelings among investors. Relative to its peers and sector, 3M has been a year-to-date performance leader. Look for 3M to OUTPERFORM.

Twelve Bull Market Stocks That Need Stock Splits: Google, Apple, Amazon and More

Stock splits have long been cheered by the investing community. After all, this gives retail investors the chance to get back in a stock at a more reasonable share price. You may recall the endless stock splits that were seen in the late 1990s and just after 2000, when so many technology and growth stocks were doubling, then tripling and more in share prices.

Some investors and some corporate managers consider a stock split a mere share price gimmick. The problem is that the public only has so much money. If a stock trades at $400 per share, an order of a traditional 100 shares from a retail investor generates a purchase price of $40,000 to buy the stock. An overwhelming percentage of the U.S. population cannot even come up with $10,000 as an emergency expense, let alone to buy shares as an investment.

It is undeniably a bull market. We have even seen a technical analyst prediction calling for the new all-time highs to continue, taking the S&P 500 up from 1,700 to 2,000, and then a secular bull market rally to over 2,500. If we really are entering the next secular bull market after more than a decade of a bear market, then it only seems logical that companies will want to start splitting their stocks again.

24/7 Wall St. has compiled a list of stocks that really should consider making stock split announcements. Maybe it is a bull market gimmick, but a wave of stock splits from key stocks could reinvigorate the mood and outlook of investors who have grown to have disdain and serious trust issues regarding the stock market.

Our screen deals with companies that have a very high stock price, all well over $100 and $200. All of them should be household names, and they are just about all members of the S&P 500 Index. We also selected stocks that are actively traded and liquid. These companies are all still growing, and some have issued stock splits in the past.

We have included how much it would cost an investor to buy 100 shares. Also included is a backgrounder for each company, and we have added color on each. Each company’s stock split history has been included, if applicable.

Amazon.com Inc. (NASDAQ: AMZN)
> Cost for 100 shares: $30,000

Amazon.com trades roughly at $300 now, and its 52-week range is $218.18 to $313.62. Its market cap is close to $137 billion, and Jeff Bezos has taken Amazon into almost every single facet of retail consumer products. The company has been a disrupting force for all retail segments as well. Amazon split its stock three different times in the most recent great technology boom and bull market: two for one in 1998, and three for one later in 1998 and lastly two for one in 1999. Its last stock split took shares to the equivalent of about $60 on par with today’s price of $300.

Apple Inc. (NASDAQ: AAPL)
> Cost for 100 shares: $46,500

Apple was the bull market king until the stock peaked at $705 in 2012. Now the company’s lead against technology peers has narrowed, it is dependent on new product excitement, which has been elusive, and the leadership today just does not have the same clout as the great Steve Jobs. With shares trading around $465, Apple’s 52-week range is $385.10 to $705.07, and its market cap of $422 billion makes it the largest single public company. Apple is now paying a dividend and is approved for share buybacks, so a dividend split would not be out of line. Apple has even had three different two-for-one stock splits: in 2005, 2000 and 1987. Apple’s most recent stock split took its shares to roughly $44 in today’s price terms, so it has risen tenfold despite it latest stock price woes. Here is some food for thought: Apple consumers still pay almost the same for one share as they do for many of the company’s retail products.

AutoZone Inc. (NYSE: AZO)
> Cost for 100 shares: $44,000

Does the great auto parts seller named AutoZone remind you of a stock that would trade above $400 per share? With its shares around $440, it has a 52-week trading range of $341.98 to $452.19. This industry leader has a $15.6 billion market capitalization as well. AutoZone has split its stock on a two-for-one basis twice, but back in 1994 and 1992. In today’s share price terms, that most recent split was around $27 back then, and that means its stock has risen sixteenfold since then. How many customers going into an AutoZone would think that a stock price of $440 or so seems right? We do not even see a dividend from AutoZone as it reinvests earnings into growth.

Hot High Tech Stocks To Watch For 2014

The Department of Defense awarded Honeywell (NYSE: HON  ) a sizable supply contract Tuesday.

The Defense Logistics Agency, Aviation, extended the term of Honeywell's three-year base contract for the supply of consumable and depot-level reparable spare parts for multiple weapons systems by an additional 18 months. The contract also has three, three-year option periods. One effect of this extension is to add $165.1 million to the�indefinite-delivery requirements contract. Another is to extend the completion date for Honeywell's performance to Nov. 6, 2014.

Weapons systems such as the ones covered in this contract generally accrue to Honeywell's Aerospace division, which at $12 billion in annual business, accounts for roughly $0.32 out of every $1 Honeywell brings in as revenue. As such, Tuesday's contract win could make up close to 1.4% of the Aerospace division's revenues over the next year -- and about 0.4% of Honeywell's overall sales for the year.

Hot High Tech Stocks To Watch For 2014: Barrick Gold Corp Com Npv(ABX.TO)

Barrick Gold Corporation engages in the production and sale of gold and copper. The company has a portfolio of 26 operating mines, and exploration and development projects located in North America, South America, the Australia Pacific region, and Africa. It also holds interests in oil and gas properties located in Canada. Barrick Gold Corporation was founded in 1983 and is headquartered in Toronto, Canada.

Hot High Tech Stocks To Watch For 2014: Goldsearch Ltd (GSE.AX)

Goldsearch Limited engages in the identification, discovery, and development of mineral properties in Australia and southern Sweden. It primarily explores for gold, silver, nickel, lead, zinc, copper, and uranium deposits, as well as other base metals. The company�s principal properties include the Mount Wellington project in Victoria, Australia. Goldsearch Limited is based in Sydney, Australia.

Best Gold Stocks To Watch Right Now: Fairwest Energy Corporation (FEC.V)

FairWest Energy Corporation, a junior oil and gas company, engages in the acquisition, exploration, development, and production of crude oil, natural gas, and natural gas liquids in the provinces of Alberta and Saskatchewan. The company is based in Calgary, Canada.

Hot High Tech Stocks To Watch For 2014: AAR Corp.(AIR)

AAR CORP. provides products and services to aviation, government, and defense markets worldwide. The company?s Aviation Supply Chain segment purchases and sells new, overhauled, and repaired engine and airframe parts and components. It also repairs, overhauls, and sells avionics, electrical, electronic, fuel, hydraulic, and pneumatic components and instruments, as well as internal airframe components; and provides customized inventory supply and management programs for engine and airframe parts and components. In addition, this segment sells and leases commercial jet engines and used commercial aircraft; and provides advisory services, including assistance in remarketing aircraft, records management, and storage maintenance. Its Government and Defense Services segment involves in fixed- and rotary-wing flight operations; and performs engineering and design modifications on rotary-wing aircraft for government customers. This segment also provides customized performance-base d logistics programs in support of the U.S. Department of Defense and foreign governments; and engineering, design, manufacturing, and system integration services. The company?s Maintenance, Repair, and Overhaul segment provides airframe maintenance inspection and overhaul, painting, line maintenance, airframe modifications, structural repairs, avionic service and installation, exterior and interior refurbishment, and engineering services, as well as support for commercial and military aircraft; and repairs and overhauls landing gears, wheels, and brakes. Its Structures and Systems segment designs, manufactures, and repairs airdrop and other transportation pallets, and containers and shelters used in support of military and humanitarian tactical deployment activities. This segment also designs, manufactures, and installs in-plane cargo loading and handling systems for commercial and military aircraft and helicopters. AAR CORP. was founded in 1951 and is headquartered in Wood Dale, Illinois.

Advisors' Opinion:

• [By Fernandez]

  AAR Corp. (NYSE: AIR): AAR Corp. is a diversified company that provides products and services to the aviation, aerospace, and defense industries worldwide. It operates in four segments: Aviation Supply Chain; Maintenance, Repair, and Overhaul (MRO); Structures and Systems; and Aircraft Sales and Leasing.

  I just put out an exclusive post on AAR Corp. comparing its valuation to that of the overall aerospace and defense industry, as well as how AAR stacks up to its peers.

  Needless to say, AAR is a deeply undervalued stock, even accounting for a slowdown in its business.

  I re-recommended purchase of AAR’s shares last week at $11.75 each, and while the stock has shot up to $16.00, I still feel that it is undervalued, but not by quite as much as I did before.

  Don’t take my word for it, do your own due diligence and pay special attention to how low AAR is trading compared to its book value, tangible book value, and the recent insider buying.

  If you’ve got new money to invest, AAR is my #1-B choice for new money right now.

Hot High Tech Stocks To Watch For 2014: Transamerica Income Shares Inc.(TAI)

Transamerica Income Shares Inc. is a close ended fixed income mutual fund launched and managed by Transamerica Asset Management, Inc. It is co-managed by AEGON USA Investment Management, LLC. The fund invests in fixed income markets. Transamerica Income Shares Inc. is domiciled in United States.

Top 5 Financial Stocks To Buy Right Now

Blue-chip stocks are marginally lower this afternoon after a series of economic reports released today painted a conflicting picture of the financial health of the American consumer. With roughly an hour left in the trading session, the Dow Jones Industrial Average (DJINDICES: ^DJI  ) is off by 71 points, or 0.46%.

To start with the bad news: the Department of Commerce released data today suggesting that the economic recovery is still proceeding in fits and starts. According to its report, consumer spending fell by 0.2% in April -- the weakest reading since last May. Economists had forecast a decline of only 0.1%.

Now to the good news: A separate report showed that consumer confidence is at the highest level since 2007. The University of Michigan/Thomson Reuters Consumer Sentiment Index advanced to 84.5 this month from 76.4 in April. The consensus estimate called for a reading of 83.8.

Top 5 Financial Stocks To Buy Right Now: Banco Santander S.A.(STD)

Banco Santander, S.A. provides a range of banking and financial products. It accepts customer demand, time, and notice deposits, and international and domestic interbank deposits, as well as offers auto financing, personal loans, and credit cards; and automated cash dispensers, savings books updaters, telephone banking services, and electronic and Internet banking services. The company also engages corporate banking, treasury, and investment banking activities. It provides transaction banking services in cash management, trade finance, and basic financing; and corporate finance services for mergers and acquisitions, and asset and capital structuring, as well as involves in the origination activities and risk management, and distribution of structured products and debt in the credit markets; structuring and trading activities in financial markets of interest rate and exchange rate instruments; and activities relating to the equity markets. In addition, it engages in the des ign and management of mutual and pension funds, and life and general insurance products. The company operates primarily in Spain, the United Kingdom, other European countries, Brazil and other Latin American countries, and the United States. As of December 31, 2010, it had 6,063 branch offices in continental Europe; 1,416 branches in the United Kingdom; 5,882 branches in Latin America; and 721 branches in the United States. The company was formerly known as Banco Santander Central Hispano S.A. and changed its name to Banco Santander, S.A. in June 2007. Banco Santander, S.A. was founded in 1857 and is based in Madrid, Spain.

Top 5 Financial Stocks To Buy Right Now: Independent Bank Corp.(INDB)

Independent Bank Corp. operates as the bank holding company for Rockland Trust Company that provides various banking services in Massachusetts. It offers various deposit products, including demand deposits, interest checking accounts, savings accounts, time deposits, and money market accounts. The company?s loan portfolio comprises commercial and industrial loans to business and corporate enterprises for working capital and other business-related purposes, and floor plan financing; commercial real estate loans that include commercial mortgages that are secured by non-residential properties, as well as mortgages for construction loans on non-residential properties; and small business loans to businesses with commercial credit needs. It also provides consumer real estate loans, which consist of residential mortgages, and home equity loans and lines that are secured primarily by owner-occupied residences; mortgages for the construction of residential properties; and consumer loans that comprise personal loans, automobile loans, installment loans, and overdraft protection. In addition, the company offers investment management and trust services to individuals, institutions, small businesses, and charitable institutions. Independent Bank Corp. operates 67 full service and 3 limited service retail branches, 8 commercial banking centers, 4 investment management offices, and 4 mortgage lending centers. The company was founded in 1907 and is headquartered in Rockland, Massachusetts.

Top 10 Cheap Companies To Watch For 2014: Prudential Bancorp Inc. of Pennsylvania(PBIP)

Prudential Bancorp, Inc. of Pennsylvania operates as the holding company for Prudential Savings Bank that provides various financial products and services in Pennsylvania. Its deposit products include interest-bearing and non-interest-bearing checking, money market, savings, and certificate of deposit accounts. The company?s loan portfolio comprises single-family residential mortgage loans, construction and land development loans, non-residential or commercial real estate mortgage loans, home equity loans and lines of credit, commercial business loans, and consumer loans. The company also provides securities and insurance products, as well as automated teller machine and online banking services. As of September 30, 2010, it operated a main office and six branch offices located in Philadelphia and Delaware Counties. The company was founded in 1886 and is headquartered in Philadelphia, Pennsylvania. Prudential Bancorp, Inc. of Pennsylvania is a subsidiary of Prudential Mutu al Holding Company.

Top 5 Financial Stocks To Buy Right Now: Delaware Investments Dividend & Income Fund Inc. (DDF)

Delaware Investments Dividend and Income Fund, Inc. is a close-ended balanced mutual fund launched by Delaware Management Holdings, Inc. It is managed by Delaware Management Business Trust. The fund invests in the public equity and fixed income markets of the United States. It seeks to invest 65 percent of its corpus in stocks and 35% in fixed income securities. The fund primarily invests in value stocks of large cap companies. It also invests in convertible securities, preferred stocks, other equity-related securities, and real estate investment trusts. For the fixed income component of the fund�s portfolio the fund invests in high yield corporate bonds rated BB or lower in terms of quality. It benchmarks the performance of its portfolio against the S&P 500 Index. Delaware Investments Dividend and Income Fund, Inc. was formed on March 25, 1993 and is domiciled in the United States.

Top 5 Financial Stocks To Buy Right Now: Brown & Brown Inc. (BRO)

Brown & Brown, Inc., a diversified insurance agency, engages in the marketing and sale of insurance products and services in the United States. Its Retail division provides insurance products and services to commercial, public and quasi-public entity, professional, and individual customers. This division offers property insurance relating to physical damage to property, and resultant interruption of business or extra expense caused by fire, windstorm, or other perils; casualty insurance relating to legal liabilities, workers� compensation, and commercial and private passenger automobile coverage; fidelity and surety bonds; group and individual life, accident, disability, health, hospitalization, medical, and dental insurance, as well as provides risk management and loss control surveys and analysis, and consultation services. The company�s National Programs division offers professional liability and related package insurance products for dentists, lawyers, accountants, o ptometrists, opticians, insurance agents, financial service representatives, benefit administrators, real estate brokers, real estate title agents, and escrow agents. This division also markets its products and services to specific industries, trade groups, public and quasi-public entities, and market niches through independent agents. The company�s Wholesale Brokerage division markets and sells excess and surplus commercial insurance products and services to retail insurance agencies; and reinsurance products and services to insurance companies. Its Services division offers insurance-related services, including third-party claims administration and comprehensive medical utilization management services for the workers� compensation and various liability arenas; medicare set-aside services; and social security disability and medicare benefits advocacy services. Brown & Brown, Inc. was founded in 1939 and is headquartered in Daytona Beach, Florida.

2 Big Reasons for Ultrashort Bond Funds

With ultrashort bond funds, it all depends on the definition of modest.

We don’t cover many of these funds anymore,” said Sarah Bush, senior mutual fund analyst with Morningstar, told ThinkAdvisor recently. "Ultrashorts were yielding too little and got really small, and we just felt we needed to deploy our resources elsewhere.”

But when Bush took a second look, she found a surprise.

“The category has experienced modest inflows really since the beginning of the recovery in 2009,” she explained, adding that this includes the massive bond fund outflows seen in June.

A closer look at Morningstar data reveals modest net flows of $4.4 billion and $2.3 billion in 2010 and 2011, respectively, for corresponding total assets of $35.4 billion and $37.8 billion.

But in 2012 the asset class took off, comparatively, racking up $9.5 billion in net flows and $48.4 billion in total assets. So far, this year looks even better, with $5.4 billion in net flows and $54 billion in assets through July.

So why ultrashorts, and why now? The answer is yield, of course, and interest rates.

In an investing environment where the dual problems of low yield and increasing interest rate risk dominate headlines daily, ultrashort bond funds might be the trick.

“If [investors] have a 10% or 20% allocation to cash because they’re defensive or they’re looking for better entry points into the equity or fixed income markets and they don’t want to earn zero in a money-market fund, then an ultrashort fund makes sense,” says Charles Melchreit, manager of Pioneer Investments Multi-Asset Ultrashort Income Fund (MCFRX).

Another appeal, in particular, is their flexibility.

For instance, Melchreit’s fund, co-managed with Seth Roman and Jonathan Sharkey, is “massively diversified” in that it hits a lot of different levers across a lot of different sectors.

 “I don’t think that’s as unusual now as it once was within this space," he said. "We’re looking to invest in sectors that are not terribly correlated. Most sectors have some correlation, but we’re really trying to take advantage of any imperfect correlations that we can in the short-duration space.”

The fund has a heavy focus on risk management and trying to manage net asset value volatility so it doesn’t experience massive swings.

“The ultrashort world is now using a lot of different sectors in corporates and mortgages and even bank loans, money-market instruments and cat bonds," Melchreit said, "all of which appeal to different investors and present for us as an investment manager different pools of liquidity.”

Meaning if faced with a period of high redemptions, he has a choice of which securities to sell.

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Check out an Ultra-Strong Case for Ultra-Short Funds on ThinkAdvisor.

Atlas of Giving Raises Donation Forecast for Rest of Year

Nonprofit organizations can expect donors to be more generous this year—good news for the many groups that have been just holding on.

The latest Atlas of Giving forecast indicates that charitable giving in the U.S. will amount to $401 billion in 2013, compared with $369 billion at the end of 2012, an increase of 8.6%.

This year-end estimate is higher than one issued in April. The report attributed the more optimistic outlook to strong economic performance.

Year-to-date charitable giving nationwide totaled $231 billion at the end of July, an increase of 8.5% from 2012, according to the new monthly report.

Donors gave $34 billion in July, up 1.9% from June, and were expected to contribute about the same amount in August.

The new report said religion would remain the largest giving sector this year, despite a one percentage point drop to 35% overall from 2012.

Education is the next biggest sector at 16%.

Nature/environment, the smallest sector at 2%, will enjoy the sharpest increase in donations in 2013, up 12.7%.  

Rockwell Collins: Sterne Agee Upgrades Stock After Acquisition, Fitch Warns on Debt

Shares of Rockwell Collins (COL) have rebounded today after selling off yesterday on news that it would make a billion dollar acquisition.

AFP

Yesterday, Rockwell Collins said it would purchase Arinc from the Carlyle Group for $1.4 billion, as the U.S. defense company seeks to bolster its air communications business. Rockwell’s stock fell 1.5% yesterday on the news.

Sterne Agee, however, came out in support of the deal today. Analysts Peter Arment and Josh Sullivan note that the deal, while expensive, will go a long way towards boosting the company’s aerospace business in the years to come. They write:

The purchase price of $1.4 billion results in an estimated transaction multiple of ~12x-13x 2013 EBITDA, which is at the very high end of the range of transaction multiples for aerospace M&A deals. However, the scarcity value of the type of business of ARINC coupled with the growing theme of connectivity in aviation warrants a more strategic valuation…

With an improving outlook with aerospace profits becoming 60% of the mix by FY15 vs. 50% today, COL can return to supporting a higher valuation.

The analysts are such big fans of the deal, that they raised Rockwell Collins to a Buy from Neutral.

The credit rating firms are not so thrilled by the deal, which will be financed entirely with debt. Yesterday, Moody’s and Standard & Poor’s both said they would reevaluate their debt ratings for Rockwell Collins, and this morning  Fitch followed suit by placing it on watch for a downgrade. Fitch said:

Fitch’s primary credit concern is the timing of COL’s return to stronger metrics, including the risk of sequestration and of a weaker economy that could constrain the company’s earnings and cash flow and slow a reduction in leverage. This concern is mitigated by COL’s solid margins and strong cash flow generation which were typically deployed towards share repurchases and dividends. Fitch expects share repurchase activities to moderate in the near future, and COL will deploy its cash towards repayment of its commercial paper expected to be incurred in connection with the Arinc acquisition. Fitch is also concerned with the integration risk of the acquisition as COL is not experienced in integrating large scale operations due to the bolt-on acquisition strategy followed by the company in the recent past.

Shares of Rockwell Collins have gained 0.8% to $73.89 today, while Lockheed Martin (LMT) has gained 0.7% to $123.90, and Northrop Grumman (NOC) has ticked up 0.2% to $95.10. The SPDR S&P 500 ETF (SPY) has gained 0.3% to $169.62.

Why Active ETFs Are Doing So Well: AdvisorShares CEO

Noah Hamman isn’t about to weigh in on the always-controversial active versus passive debate.

The founder and CEO of Active ETF provider AdvisorShares Investments thinks it’s rather moot, and sets his sights on a bigger target.

“I’m not trying to convince anyone that an active ETF is better than a passive ETF,” he says, when asked to pretend the interviewer is legendary passive investment advocate John Bogle, the Vanguard founder. “I’m instead looking at the $13 trillion in mutual funds, 80% of which are actively managed, and telling them there is a better way.”

He notes that when passive ETFs were introduced, passive strategies could be gotten from many different sources. It was the transparency, liquidity and accessibility that gave them their unique value proposition.

“It’s the same now with active ETFs. You can get active management anywhere, but active ETFs are more liquid, transparent and have a lower cost than comparable products.”

And of course, there’s the product’s tax efficiency, especially when compared with its mutual fund counterpart.

“For these reasons, active ETFs are attracting more assets at this stage of their development than passive ETFs did at the same point in theirs,” he adds.

Hamman points to the number of new products coming available as proof of their popularity, despite recent regulatory hurdles like a moratorium on derivatives.

Hamman knows a little something about the active ETF and alternative investment space. In 2006, he was an equity founding partner of Arrow Investment Advisors, advisor to the Arrow Funds. In the first 24 months of operation, Arrow had $350 million in assets under management and distribution relationships with firms including Merrill Lynch. Before that, Noah was vice president of business development for Rydex Investments.

Giving credence to his active/passive peace plan, Hamman notes that at Rydex, he led the launch of the firm's index-based ETF, commencing with the launch of RSP (Rydex S&P Equal Weight ETF). In addition, he diversified the firm's business and product lines by developing the firm's first buy-and-hold mutual funds.

As for the near-future for active products, Hamman sees a particular type of advisor as the key.

“It will be the fee-based advisors that will drive their growth in large part,” he concludes. “The commission-based people will still go for more of A-share and C-share mutual funds, but for the former, it fits.”

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For direct insights on the role of ETFs in client portfolios from multiple experts—including Rick Ferri, Ron Delegge, Skip Schweiss and more—we invite you to register for AdvisorOne’s premiere advisorcentric Virtual ETF Summit, which starts July 23 (and get multiple hours of CFP Board CE).

Zynga Closes Up OMGPOP

Struggling social gamer Zynga  (NASDAQ: ZNGA  ) recently shuttered its OMGPOP site along with most of its titles. The company is still hanging on to Draw Something, which was the driving force behind the acquisition. Oddly, former OMGPOP employees had reportedly offered to buy some of these assets and intellectual property from Zynga, but to no avail.

In the following video, Fool contributor Evan Niu, CFA, and Eric Bleeker, CFA, discuss Zynga's controversial acquisition and some of the challenges that Zynga continues to face going forward.

The tech world has been thrown into chaos as the biggest titans invade one another's turf. At stake is the future of a trillion-dollar revolution: mobile. To find out which of these giants is set to dominate the next decade, we've created a free report called "Who Will Win the War Between the 5 Biggest Tech Stocks?" Inside, you'll find out which companies are set to dominate and give in-the-know investors an edge. To grab a copy of this report, simply click here -- it's free!