ING to Launch New Advisor Platform in Q4

ING U.S., through its broker-dealer, ING Financial Partners, says it will roll out a new wealth-management platform for its roughly 1,500 affiliated independent financial advisors and their clients in the fourth quarter of 2013.

“The new platform consolidates a household’s financial information into one place, making it easier for both the client and his or her financial advisor to see the complete picture, as well as analyze budgets, investments and retirement projections,” said Christina Hurley (left), head of products for ING U.S. Retirement Solutions Individual Markets, in a press release on Wednesday.

“We’ve been listening to our financial advisors and are responding with the tools and support they need for their advisory business. We know that their clients need holistic financial planning, and this platform can help align their financial plans to their goals,” explained Hurley.

ING U.S. says that the new platform is based on two key parts: one that offers new online capabilities for both advisors and clients to use independently or at the same time, and another that brings advisors enhanced capabilities to help them manage their business, including the ability to make financial transactions in a single, integrated environment.

Other key benefits and features of the platform are:

“As the need for financial advice continues to grow, tools that help to deepen relationships and accentuate a financial advisor’s value will be increasingly important,” said Andre Robinson, head of advisory business development at ING Financial Partners, in a statement.

“Our new platform will help to increase real-time collaboration with clients. Clients want a complete view of their financial picture at their fingertips, while advisors want tools that help them assess their clients’ financial situation and take action,” Robinson noted.

ING U.S. (VOYA),the American insurance entity of ING Group NV, is in the process of changing its name to Voya Financial in the near future. It completed its IPO in April and expects the name change to be complete by April 2016. The U.S. unit is led by former American International Group executive Rodney Martin.

Fred's' Sales Improve in June - Analyst Blog

Recently, Fred's Inc. (FRED) reported decent total sales and comparable sales for Jun 2013, against the year-ago period. Comparable store sales for the month climbed 4.5% compared with a fall of 4.0% in the year-ago month.

Customer traffic increased in June on the back of the reconfiguration of general merchandise and improved weather conditions.

Growth in script counts led to positive comparable store sales in the pharmacy department for the first time in 10 months.

Decent sales in the Lawn & Garden, Summer Toys and Seasonal departments boosted total sales for the month by 3.0% year over year to $187.7 million.

For the first five months of fiscal 2013, comparable store sales were flat compared to the same period a year ago. Fred's' total sales inched up 1.0% to $841.6 million compared with $835.1 million for the same period last year.

After closing 20 stores and opening a net of two new stores and one new pharmacy locationduring Jun 2013 Fred's now operates 697 discount general merchandise stores, including 21 franchised Fred's stores.

Guidance

Second quarter of fiscal 2013

Fred's reiterated its second-quarter guidance keeping in view the results of the first two months of the quarter. For the second quarter of fiscal 2013, Fred's forecasts its total sales to increase in the range of 2% to 4%, while it expects comparable store sales to be flat in the second quarter. The company expects earnings to remain within a range of 6 cents – 9 cents per share in the quarter.

Management is well on track to improve its pharmacy department growth, expand its specialty drug program, and roll out its expanded auto and hardware programs. However, the company continues to expect tough retail conditions to continue across the markets in fiscal 2013. In addition, declining comparable store sales over the past several months remains a concern.

Currently, Fred's carries a Zacks Rank #2 (Buy).

Other diversified retailers! worth considering include Restoration Hardware (RH), Dollar Tree, Inc. (DLTR) and Ross Stores (ROST). While Restoration carries a Zacks Rank #1 (Strong Buy), Dollar Tree and Ross Stores hold a Zacks Rank #2.

Did Verizon Make A Smart Move?

The recent purchase of Vodafone's remaining interest in Verizon Communications creates an interesting opportunity says Jim Jubak, but it probably is not the one you think.

I normally don't like to buy stocks that are predicated on a company not executing its strategy, but I think if you're looking at the recent deal between Vodafone and Verizon—over the Verizon wireless partnership, that's exactly what you see when you look at Vodafone. So Verizon and Vodafone had a partnership that controlled Verizon wireless. Verizon has spent $172 billion, some ungodly amount of money, to go out and buy the stake in Verizon wireless that it didn't have, so it gets the whole thing.

What Vodafone gets is a lot of cash, and what Vodafone has said looking around is, "Uh-oh, if we have a lot of cash and if we don't put it to work, we become an acquisition candidate ourselves." Because we've got a lot of cash, we've got some decent assets, and, in fact, right now, it looks like we're a pretty good pure play on Europe for a company like AT&T, that wants to build up its market share in the Euro zone.

So, the strategy that Vodafone is going to pursue to try to avoid becoming an acquisition candidate itself is to go out and make small acquisitions. There aren't a whole lot of acquisitions, you can buy a few players in Europe, you can buy some players in the emerging markets. The idea is that they'll be able to spend down their cash, at least the cash that remains after they have paid their dividend, and Verizon is also going to pay part of those prices in stock, so they won't have all cash, but basically, the idea is that you spend enough money so that you don't have a lot of cash sitting there, so that an acquirer can't use your cash to basically acquire you, and that's the strategy.

Now, I'm hoping that once the dust is cleared, that Vodafone is reasonably priced enough, so that I might actually be able to put some money on the hope that this strategy doesn't succeed, because I think Vodafone, as an acquirer of other small wireless companies is a whole lot less interesting as an investment, than Vodafone as a company that's going to be acquired. The likely acquirer, looking at markets, you know, looking at the size of the companies and various sundry pieces of who owns pieces of what, is AT&T. So, what I'm looking for is Vodafone being able to spend $5 billion, $6, $7, $8 billion, but still having a lot of cash, being a very attractive candidate, and there being some bid from AT&T for those assets in Europe. That, I think, would be the best thing that would happen if you're an investor in Vodafone is for Vodafone's strategy not to work.

This is Jim Jubak for the MoneyShow.com video network.

Is BlackBerry Back?

This Friday will be a big day for BlackBerry (NASDAQ: BBRY  ) . The troubled smartphone maker is hoping for a renaissance, powered by a variety of new phones running the company's QNX-based BB10 OS. The company's upcoming earnings report will be the second since BlackBerry 10 smartphones started to roll out worldwide. It's also the first report since the launch of the Q10: the first BB10 phone with BlackBerry's signature QWERTY keyboard. The report will therefore provide some insight into the demand for these new models.

The BlackBerry Q10.

The new BlackBerry platform is nowhere near challenging market leaders Apple and Google, but investors hope it will be able to carve out its own niche in the rapidly growing smartphone market. However, observers are sharply divided in their beliefs about just how much traction BlackBerry 10 is gaining. Next week's earnings report and the associated conference call should help a lot in terms of understanding whether BlackBerry can mount a real comeback.

Analysts divided
As my Foolish colleague Tim Brugger recently highlighted, BlackBerry analysts just don't know what to expect from the company. Last Friday, an analyst at Societe Generale upgraded the company, writing that demand for the new BB10 phones has been stronger than expected, and the company could have sold more than 5 million units last quarter. Analysts at RBC and Jefferies are also expecting strong results for the recently ended quarter.

However, there is an even larger pool of analysts who are convinced that BlackBerry is on the brink of collapse. This Wednesday, an analyst at Bernstein Research cut his rating on the stock, arguing that consumer demand for the new BB10 phones has fallen off rapidly. Similarly, longtime BlackBerry bear James Faucette of Pacific Crest opined that the vast majority of BB10 phones being produced are going into inventory, and that global BB10 phone demand is less than 500,000 units per month.

Let's see some numbers
Opinion on Wall Street is thus hopelessly divided. Over the past six months or so, a few analysts have crossed over from the bear camp to the bull camp or vice-versa, but for the most part they have become ever more convinced that their initial beliefs were true. Furthermore, the market is flooded with a variety of rumors about BlackBerry supply and demand. We need more hard data to get a decent sense of the company's chances.

BlackBerry investors should be looking for two things on Friday: a sales number for BlackBerry 10 phones (anything above 4 million is good, while anything under 3 million is bad), and some commentary on sell-through. Sell-through refers to the number of units actually in the hands of users, and thus excludes phones sold to wholesalers and retailers that are still sitting in inventory. Last quarter, CEO Thorsten Heins said that at least two-thirds to three-quarters of the units shipped by BlackBerry had already sold through to end users. That's a very strong figure, and investors need to see whether the company can repeat that performance.

What does it all mean?
Nobody thinks BlackBerry is going to rival Apple or Samsung in terms of shipment volume in the foreseeable future. However, BlackBerry has traded below book value for a long time, which implies that many people still expect the company to go out of business relatively soon. In other words, it's not really fair to compare BlackBerry with Apple, Samsung, and Google for investment purposes. If BlackBerry can carve out a small niche in the smartphone market -- perhaps 5% of the high-end and midrange segments -- investors will be thrilled. Anything beyond that is just icing on the cake.

Realistically, to accomplish this, BlackBerry needs to start by converting most of its existing subscribers to BlackBerry 10 devices. Considering how outdated the legacy BlackBerry OS is, these users ought to be very excited about the opportunity to upgrade to a much snappier BlackBerry phone. If this is true, there should be enough pent-up demand to soak up at least 4 million to 5 million Z10 and Q10 phones for the first several quarters of production.

If BlackBerry was able to ship 5 million BB10 phones last quarter, and three-quarters of them sold through to consumers during the quarter, it would strongly suggest that this "turnaround scenario" is materializing. If shipments or sell-through are notably weaker, it will confirm the bears' fears about BlackBerry getting squeezed out of the smartphone market. For now, investors need to wait and see. Hopefully, BlackBerry's future will become a lot clearer on Friday.

Tech stocks can bring in massive returns for your portfolio, very quickly. Choosing a dominant technology, product, or company to invest in can be extremely difficult. Find out "Who Will Win the War Between the 5 Biggest Tech Stocks" in The Motley Fool's latest free report -- just click here.

3 Reasons to Sell Berkshire Hathaway Stock

I'm going to attempt something a little odd today, Fools. Even though Berkshire Hathaway (NYSE: BRK-B  ) stock makes up 3.7% of my real-life holdings, I'm going to be giving you three reasons to consider selling the stock today.

Why am I doing this?

Recently, Nobel Prize winner Daniel Kahneman visited Fool headquarters in Virginia. While visiting, he talked about how a number of different biases can lead us to believe we can predict the future with relative certainty. In reality, he argued, we are just deluding ourselves.

It got me to thinking about how I don't write enough about the risks of owning the stocks I own. So, though I don't plan on selling my Berkshire Hathaway stock anytime soon, I think it's healthy for me to practice and model this behavior.

1. Buffett and Munger aren't getting any younger

Source: ChinaFotoPress/Getty Images. 

Berkshire Hathaway's amazing appreciation over the last half-century has been accomplished through the shrewd decision-making of CEO and Chairman Warren Buffett, and later, Vice Chairman Charles Munger. Buffett is 82 years old, and Munger is 89.

Judging by their performance and generally upbeat mood at this year's stockholder meeting, neither man is showing signs of slowing down. But that doesn't mean the sad day when they leave the company won't soon come.

The company's 2013 annual report states that: "Berkshire's Board of Directors has identified three current Berkshire subsidiary managers who, in their judgment, are capable of succeeding Mr. Buffett." One contender that is generally considered the front runner is insurance guru Ajit Jain. Buffett, in fact, has so much faith in Jain that he once quipped: "If Charlie, I and Ajit are ever in a sinking boat -- and you can only save one of us -- swim to Ajit." 

While its comforting to know Warren has that level of confidence, investors should remember that Buffett and Munger have been the primary drivers of Berkshire's success over the decades.

2. It's too complicated
I like to keep my investing simple. Normally, I refuse to invest in a company if I can't explain to a kindergartener how it makes money. For Berkshire, I've broken that rule, and I'm not sure that's such a great thing.

For starters, the insurance underwriting industry can be extremely complex. It is here that Ajit has excelled, but the fact that it takes such a brilliant mind to adequately handicap risk shows that very few people can actually wrap their heads around the business.

Furthermore, this list of Berkshire subsidiaries -- taken from the company's website -- demonstrates the dizzying reach of the company -- from railroads like Burlington Northern Santa Fe, to See's Candy, and just about everything in between.

Source: Berkshire Hathaway.

Because of this, for many people, an investment in Berkshire Hathaway is more about investing alongside Buffett than it is investing in the underlying businesses (which brings us right back to my first point).

3. Berkshire Hathaway stock: low growth and no dividend
The final ding to an investment in Berkshire Hathaway is the fact that the company's prospects for significant growth are hampered by its sheer size. Currently, Berkshire has a market cap of $190 billion, with $162 billion in revenue just last year, and $44 billion in cash and cash equivalents sitting in the bank. When you accomplish that kind of size, it is very difficult to invest in anything that could possibly yield market-beating returns.

Usually, when companies get to this size, they reward shareholders in the form of dividends. Not so for Berkshire Hathaway, however. The company has only paid one dividend in its history, and that was a $0.10 payout all the way back in 1967!

What's a Fool to do?
These are all legitimate reasons to be concerned about owning Berkshire Hathaway stock. I have certainly committed the error of investing because of Buffett, rather than because I can understand all of the moving parts that are Berkshire. Although I'll keep this in mind when reconsidering my holdings at year's end, I am comforted by the fact that Jain is on board. And the slim chance for appreciation isn't a big concern, as I've included Berkshire in my portfolio for its stability, rather than growth.

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Here's Why JPMorgan Is Flying High Today

JPMorgan Chase  (NYSE: JPM  ) is on a tear this morning, as shares opened higher and continued gaining ground early in trading. Just after 10 a.m. EDT, the bank is up 3%. Following yesterday's shareholder meeting and an added bonus from management, investors may be eager to get their hands on the shares.

A quick look around
With the Congressional testimony of Ben Bernanke just underway, the banks will likely get a boost from his comments that the Fed will not end or cut back its current stimulus plan. So far, the other Big Four banks are in positive territory, but trailing JPMorgan:

The overall KBW Bank Index (DJINDICES: ^BKX  ) is up 1.3%. Citigroup is up 1.93%. Bank of America is enjoying a gain of 1.86%. Wells Fargo is a little behind, with a gain of 0.71%.

The recent rally for JPMorgan adds to the impressive gains the bank has made in the past few months. With a 13.7% rise in the past 30 days and a 31.1% gain over the past six months, the bank is on a roll -- leading many to reaffirm their confidence in management, Jamie Dimon's leadership in particular.

Meeting of the minds
Yesterday's shareholder meeting was highly anticipated and closely watched, as Wall Street waited to see if investors would vote to split up Jamie Dimon's dual CEO/Chairman roles within the bank. As many expected, the proposal to split the roles was defeated for the third year in a row. With shareholders in favor of the split only accounting for 32% of the total vote, Dimon's victory was by a larger margin than the prior year's -- which was a 60-40 split.

Either the analysts that predicted a Dimon defeat were way off base, or the threat of his leaving the bank entirely was sufficient enough to swing votes in his favor -- whatever the case, Jamie Dimon is here to stay. Whether or not you like his leadership at JPMorgan, there are plenty of examples of stellar operations and record earnings under his guidance.

Bonus time!
For all those shareholders that voted to keep Dimon in the big seat(s), management took note and announced a newly increased dividend. Upping the ante by 26%, the new dividend will pay out $0.38 per share in July. With the bank's record earnings in the first quarter, there's no real surprise that it would raise the dividend. But some continued pressure from low interest rates, slowing in the mortgage market, and some pressures in emerging markets may have caused some to believe that the increase would not be as substantial.

All in a day's work
Dimon gets to keep both of his banker hats, and shareholders get a little capital disbursement for their trouble. While that may not sit well with the 32% of investors that wanted the split, long-term shareholders should be happy with the outcome. The bank doesn't have to go through a big shuffle on the board or more headlines about Dimon's future -- it can get back to business. And while today's gains are great, they may not last as we move through the week or month. Keep an eye on the long-term prospects of the bank, and you'll be golden.

With big finance firms still trading at deep discounts to their historic norms, investors everywhere are wondering if this is the new normal, or if finance stocks are a screaming buy today. The answer depends on the company, so to help figure out whether JPMorgan is a buy today, check out The Motley Fool's premium research report on the company. Click here now for instant access!

Last Week's Big Dow Losers

Now that we're getting deeper into earnings season, investors have begun to focus more of their attention on what really matters: earnings. Other than Monday's drop, which was caused by the poor gross domestic product numbers from China, all week we saw stocks trading on earnings news more so than on economic data. And in that kind of environment, when earnings disappoint, stocks fall. That's what we saw happening all around the market this week, and it's why the major indexes moved lower over the past five trading sessions.

The Dow Jones Industrial Average (DJINDICES: ^DJI  ) lost 317 points, or 2.16%, and now sits at 14,547 after 19 of its 30 components ended the week lower. The S&P 500 didn't perform much better, losing 2.11%, while the Nasdaq ended the week as the biggest loser, after dropping 2.69%.

Before we hit the Dow losers, let's look at the index's big winner. Coca-Cola (NYSE: KO  ) ended the week higher by 3.84%, even after it fell 2.41% on Monday alone. Monday's decline was probably due to an overreaction from shareholders relating to China's slowing GDP. The stock quickly turned things around and rose 5.69% on Tuesday, after the company reported better-than-expected revenue and earnings for the first quarter. Earnings per share beat analysts' estimates by $0.01 after coming in at $0.46 per share, even though revenue fell 1% to $11.04 billion, which was higher than the $11.02 billion Wall Street had expected.  

The big losers
The release of China's GDP numbers hit nearly the whole market on Monday, but most stocks rebounded. A few, however, continued to fall as the week progressed, and one of them was Caterpillar (NYSE: CAT  ) . Shares of the construction heavy-equipment manufacturer fell 5.43% this past week. After losing just less than $2 per share on Monday, it dropped another dollar on both Tuesday and Thursday.

Caterpillar releases earnings on Monday, and it will probably be another volatile day for shares. If the company misses, expect another big decline, but if Cat beats Wall Street's expectations, shares are likely to climb rapidly higher. For more about what to expect from Monday's earnings report, click here. 

Shares of UnitedHealth Group (NYSE: UNH  ) lost 4.74% this past week. The stock tumbled 3.7% on Thursday alone, after the company announced an earnings report in which it beat on the bottom line and missed on the top. But what hit the stock perhaps even harder was the announcement that a major public-sector employer had reduced its coverage from a full-risk plan to cheaper fee-based coverage. This may be a new trend the health-insurance companies will begin seeing, and if that's the case, it will most definitely hurt revenue and profits.  

And the biggest Dow loser this week was IBM (NYSE: IBM  ) , as shares dropped 10.11% over the past five trading days. The biggest decline came on Friday, when the stock fell 8.28% after the company announced earnings for the first quarter and announced that it missed on both the top and bottom lines. Analysts wanted to see revenue of $24.62 billion and earnings per share of $3.05, but IBM managed to bring in only $23.41 billion in revenue, resulting in bottom-line EPS of only $2.70. Investors clearly were disappointed with the results, but the bigger question is whether this is just a one-time fluke for IBM. Is the company is losing its luster? Investors will have to follow IBM over the next few quarters to find out, but be prepared for some volatile days ahead.

Other Dow losers this week:

Hewlett-Packard, down 6.41% Wal-Mart, down 0.34% 3M, down 1.82% AT&T, down 0.8% Cisco, down 5.01% Du Pont, down 1.26% JPMorgan Chase, down 3.63% Travelers, down 1.68% United Technologies, down 2.58% General Electric, down 7.28% Chevron, down 3.36% Boeing, down 1.04% Alcoa, down 1.7% Bank of America, down 4.19% ExxonMobil, down 1.73% McDonald's, down 3.54%

More Foolish insight
The massive wave of mobile computing has done much to unseat the major players in the PC market, including venerable technology names like Hewlett-Packard. However, HP's rapidly shifting its strategy under the new leadership of CEO Meg Whitman. But does this make HP one of the least-appreciated turnaround stories on the market, or is this a minor blip on its road to irrelevance? The Motley Fool's technology analyst details exactly what investors need to know about HP in our new premium research report. Just click here now to get your copy today.

Envestnet to Acquire UMA Firm Placemark for $66 Million

Envestnet Inc. announced Tuesday that it has agreed to acquire Placemark Holdings Inc. for $66 million in cash, giving the Chicago-based firm a stronger presence in the regional broker-dealer market, balancing Envestnet’s already strong presence in the SMA and UMA space among independent BDs and RIAs.  

“Placemark has been very successful in helping firms that have successful SMA programs,” like regional BDs that “didn’t have the capital to build their own UMA solutions, which are now more of a core offering in fee-based programs,” said Envestnet (ENV) President Bill Crager in an interview.

Stressing that unified managed accounts, or UMAs, are “not a product, but an infrastructure,” Crager said Placemark has succeeded in “helping those full-service broker-dealer firms to transition” from traditional SMA offerings to UMAs.

Placemark Chairman and CEO Lee Chertavian will join Envestnet as Group President of Envestnet|Placemark. The “most senior members” of Placemark’s management team—including Chertavian, Ron Pruitt and Richard Dion—“will remain in impactful roles” at Envestnet, Crager said. 

The integration of Placemark, including its portfolio overlay and tax ptimization offerings, onto the Envestnet platform will be done slowly and deliberately, said Crager, saying final integration could happen by late 2015 or early 2016. “We won’t rush the integration,” Crager said, since a “slower process” with plenty of time for planning will be “very helpful” to Placemark’s clients. He said by that time it will be “clearly an accretive acquisition.”

Envestnet has had much experience over the past few years in integrating firms onto its platform, from which it learned that such integration “is an extended process; we want to make sure the client has plenty of time to transition.”

As for the SMA and UMA strategies, Crager said “we have 1,500 strategies; they have 2,000,” so “there’s massive overlap,” and that even with duplicate strategies removed, “the superset together will be the largest in the industry,” which will make it easier as well for employee brokers to maintain access to their preferred managers should they go the independent advisor route.

Crager said that in acquiring Placemark — the deal is expected to close by early in the fourth quarter — it did so because it expects “down the road [that] firms will look beyond the UMA” offering alone to integrated features like performance reporting, rebalancing and due diligence on a wealth platform like Envestnet’s.

For some BDs, he said, “it will make sense” to adopt “a cloud-based, highly flexible, nuanced” integrated platform like Envestnet’s that delivers the flexibility needed in fee-based programs. Total UMA assets at the combined firm will be about $25 billion; Envestnet alone had $572 billion in assets as of the end of Q1 2014.

Are there more acquisitions in the offing? “We continue to look for opportunities," Crager said. "We evaluate a lot more opportunities than we follow through on.

"This one ticked all the boxes,” he said, referring to Placemark and its culture, people and offerings.

“We’ll be focused on how advisors’ practices are evolving, and what they expect in the next generation. Some of that we’ll build ourselves,” he concluded, while some will be provided by “strategic” moves.

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Related on ThinkAdvisor:

 

Financially Savvy Gifts For New Graduates

GWImages/Shutterstock LOS ANGELES -- Americans typically spend nearly $5 billion on gifts for graduates, with a little over half giving cash and a third offering gift cards, according to last year's National Retail Federation survey. Those surveyed spent an average of $49, which won't buy a laptop, a retirement fund or many of the other gifts often touted as "financially savvy." If you actually want to do some future good with your gift, here are some money-smart suggestions for grads from personal finance experts, college consultants and recent graduates: Living Life Experiences give us more happiness than stuff, according to various researchers. You can put those findings to practical use in a variety of ways. "I'm a sucker for experiences over products, so I might give a gift certificate or Groupon (GRPN) to a nice restaurant or a Paint Nite with a few friends," said personal finance columnist Kathy Kristof, Los Angeles-based author of "Taming the Tuition Tiger" and mother of a recent college graduate. (For her own daughter, Kristof bought the airline tickets for four months spent "kicking around the world.") College consultant Shirley Bloomquist of Great Falls, Virginia, sometimes buys gift certificates for lunch, dinner or a theater outing for the graduate and a friend. Cooking Essentials Learning to fix meals from scratch at home will save your graduate a fortune. A good basic cookbook, such as Mark Bittman's "How to Cook Everything," is one option. Kitchen starter sets are another. Ikea has 7-piece cookware sets for $25 to $50, while Caphalon and Oxo have kitchen gadget sets for $40 to $50. College consultant Bloomquist recently gave a gift certificate for a cooking class to a law school graduate that she could share with some buddies. Help Being Grown Up Transitioning to the work world often isn't easy. Grads may benefit from the services of a resume doctor, a career counselor, a wardrobe stylist, a fee-only financial planner -- or other professionals. "I know someone who had an interior designer just spend a day rearranging things in their apartment," said Zac Bisonnette, author of "Debt-Free U" and "Good Advice from Bad People." Such help, he said, "can turn an ad hoc sort of deal into something more adult." Professional help isn't cheap, however. The cost for any of these services can be $150 an hour, or more. Some may offer discounted initial sessions, but givers on a budget may have to resort to self-help books instead. For career advice, Lynn O'Shaughnessy, author of "The College Solution," recommends "Getting from College to Career: Your Essential Guide to Succeeding in the Real World," by Lindsey Pollak and "Graduate to a Great Job: Make Your College Degree Pay Off in Today's Market," by David DeLong. Some other titles to consider: "Get a Financial Life: Personal Finance in Your Twenties and Thirties," by Beth Kobliner. "Style Bible: What to Wear to Work," by Lauren A. Rothman. "Apartment Therapy: The Eight-Step Home Cure," by Maxwell Ryan. Prepaid Cards If you're still leaning toward a cash gift, you might consider a reloadable prepaid card that allows users to track their spending and offers some protection against loss, theft or fraud. "The main advantage over cash is that cash tends to disappear quickly," said Curtis Arnold, founder of CardRatings.com and BestPrepaidDebitCards.com. "I have a son that graduated a year ago, and I would never give him a cash gift ... even though I required him to take a personal finance class during college." A prepaid card that charges fat fees is, however, the exact opposite of a financially savvy gift. Arnold recommends two lower-cost options: Serve from American Express (AXP) and Chase Liquid (JPM). Serve has a $1 monthly maintenance fee, free point-of-sale transactions and none of the typical hidden third-party costs such as ATM and cash load fees, he said. Users can also send money by email, text and Facebook (FB) and set up subaccounts to easily share money among family members, Arnold said. Chase Liquid offers unlimited free withdrawals at Chase ATMs. Point-of-sale transactions are free and there are no cash load fees. The card can be used for paying bills and its "sophisticated mobile apps" are well worth the $4.95 monthly maintenance fee, Arnold said. The card you choose could well become the gift that keeps on giving. "Once they spend your gift, they will hopefully consider reloading the card later rather than using a credit card and running the risk of increasing their debt load," Arnold said. (.)

'CHiPs' Erik Estrada on motorcycles: Don't look…

The next time you see see actor Ed Harris cruising down the highway on a motorcycle, know that he learned the art of looking good on a motorcycle from the best.

CHiPs star Erik Estrada gave Harris a personal training lesson on the motorcycle in the late 70s when a struggling actor Harris made a guest appearance on the show.

The unlikely screen duo now voice helicopters in the Disney animated film Planes, which dropped a new trailer on Tuesday.

But it's not the first time they have worked toget

her. Estrada couldn't help but to talk about schooling the now four-time Oscar nominee when Harris was on the CHiPs set. Harris was playing a one-off bad guy on the supremely popular California cop show.

Estrada, of course, was at the height of his Hollywood power playing highway patrol man Ponch on the series.

"I remember he didn't know how to ride a bike at the time," says Estrada. "(Harris) asked me, 'How do I ride this?' I told him it was easy, that I had never ridden a bike before until I came onto CHiPs."

His advice to Harris: "Don't look down and stay in first gear or second gear. Just go slow," Estrada recalls. "He did really well. He rode that bike. And he's gone onto a great career."

Estrada's other rules of the road: "Sit up straight, don't slouch and smile." These are words we can work into all aspects of our life really.

Naturally, Estrada also recommends keeping the best equipment such as gloves, boots and and a helmet.

"There's only two kinds of motorcycle riders," Estrada says. "Those who have been down and those who are going down."

Estrada still rides his Harley-Davidson Road King with the Blue Knights International Law Enforcement Motorcycle Club. He no longer cruises on his CHiPs mobile. But he does have one of the originals from the show, a gift from the Teamsters as a parting show of thanks. The bike sits in a place of honor in Estrada's guest house, right next to the pool table.

Estrada himself is looking good in uniform ! as the 1980s RadioShack commercial proved during the Super Bowl. He keeps in shape with 45 minutes of treadmill work daily. But he admits it's not the same motorcycle cop uniform.

"I had to let it out a bit," says Estrada, who just turned 65.

Even his aging secrets speak like a man who still knows how to ride on the road. Take note Ed Harris: "I'm Latin, I'm well-lubed," says Estrada. "And I color my hair."

Italy December orders fall on weak domestic demand

ROME--Italian industrial orders fell sharply in December, mainly due to a decline in orders from domestic firms, casting a shadow over hopes of an economic recovery after the worst postwar recession.

Orders declined 4.9% from November in seasonally adjusted terms, national statistics institute Istat said Thursday.

Domestic orders dropped 6.4%, while foreign orders fell 2.6% from November, according to Istat.

"There's no doubt that the overall drop is due to the internal market," said an Istat official.

Italian industrial sales shed 0.3% in December from November, with foreign sales decreasing 1.4% and domestic sales adding 0.3%, Istat added, using seasonally adjusted figures.

Italian industrial orders, however, rose 1.9% in December from the same month a year earlier, Istat said, citing unadjusted figures. Foreign orders drove the gain, rising 3.2%, while domestic orders climbed 1.1%.

Sales fell 0.6% from December 2012, with a 2.1% drop in domestic sales and a 2.8% gain in foreign sales, Istat said, using workday-adjusted figures.

Write to Liam Moloney at liam.moloney@wsj.com

Pfizer: Palbociclib Launch, Restructuring to Boost Shares, Jefferies Says

Pfizer’s (PFE) days as a market laggard might be over.

Getty Images

In 2013, Pfizer returned 26%, lagging the S&P 500′s 32% total return and the 31% rise in major pharmaceutical companies like Merck (MRK) and Novartis (NVS).

This year, Pfizer is looking like a keeper. It’s gained 2.5% this year–good news on the pipeline front has helped–while Novartis, for instance, has fallen 2.9%.

Now, Jefferies analyst Jeffrey Holford and team say it’s time to buy Pfizer’s shares, upgrading it to Buy from Hold. They write:

Oncology and restructuring are key themes for the Pharma sector. Pfizer has both with palbociclib looking like it could launch before year end, whilst management look to give increased visibility on a new organizational structure from Q1’14…

We think that many commentators are overly obsessed with a potential need for Overall Survival data from [Pfizer's] PALOMA-1 study to gain accelerated approval for palbociclib in breast cancer. We believe that the strength and magnitude of the PFS data from this study will be sufficient for filing and potential approval by year-end 2014, especially when considering that it already has Breakthrough Therapy designation from the FDA…

The strategic options being potentially pursued could result in a number of different future structures and timelines attached to them. We expect that the increased visibility, operational efficiency and improved taxation structure that may come with a reorganization will result in increased shareholder value.

Shares of Pfizer have gained 2.5% to $31.37 at 3:26 p.m., while Merck has risen 2.4% to $53.32 and Novartis has fallen 0.8% to $78.02.

CES 2014: Fuhu introduces Dream Tab for kids

EL SEGUNDO, Calif. — The Fuhu concept was to create an inexpensive tablet parents would be happy to pass to their kids and keep them happy — so that their beloved iPad would remain in their own hands.

There are many cheap Android tablets. But in 2013, Fuhi's $199 Nabi took off, striking such a chord with parents that sales more than doubled, to more than 2 million units, from 750,000 in 2012.

So what does Fuhu do for an encore? Team up with the DreamWorks Animation studio (Shrek, Madagascar) for a new Nabi, the "Dream Tab," with special cartoons, songs and apps from the DreamWorks library, along with apps like Angry Birds and Cartoon Network games.

Fuhu comes to CES with the new Android powered tablet, its third in the Nabi line (the $99 Nabi and $199 Nabi 2) along with several more adult type products aimed at kids.

All are brightly colored — a hallmark of the Nabi products, which distinguish it from the more understated adult tech colors of white, black and silver.

A new bright red wireless printer — like the Nabi — connects to the tablet. "Kids want their own printer," Fuhu CEO Jim Mitchell says. "They want to have the same thing their parents have, but in their own colors."

There is also a Nabi Karaoke machine. Kids stick their tablet atop the unit, pick up the big red microphone, and start singing along to the lyrics that are shown on the Nabi screen. The unit comes with speakers.

Nabi Karaoke(Photo: Sean Fujiwara)

No pricing has been announced, but all three products will be released in the first quarter.

The Dream Tab will feature a program to teach kids how to animate, and use the 100 DreamWorks characters to wake themselves up or exercise with the donkey from Shrek.

Mitchell says CES will be a g! reat "unveiling," for the new partnership with Dreamworks and the new Dream Tab. "CES is a big show for us," he says. "It's a chance for us to get all the retailers in and showcase what our focus is for 2014."

The challenge for Fuhu and other companies selling cheaper iPad alternative tablets is the widespread acceptance of the world's most popular tablet. "Kids start saying iPad when they're three or four years old," says Richard Doherty, an independent analyst with the Envisioneering Group.

Fuhu needs more apps created specifically for the Nabi, and more widespread acceptance of the Nabi as the kid iPad alternative.

"CES will be a big testing ground for them," Doherty says. "They could make connections there that would greatly expand their market."

Nabi tablets(Photo: Sean Fujiwara)

Readers: Did you buy a Nabi tablet for your kids? How do they like it? Tell me about it on Twitter, where I'm @jeffersongraham.

'No-interest-now' deals can be risky

During the rush to buy last-minute, big-ticket gifts, some shoppers could save a bundle in the long run by just walking away from tempting 0%, "no-interest-now" deals.

Yep, walk away. Sure, you think you'll pay off the purchase in full before getting hit by double-digit rates. But will you really? Will you be late with a monthly payment and lose that 0%?

"Deferred-interest-rate deals are a hot offering right now, as this is the busiest and most profitable time of the year for retailers," said Odysseas Papadimitriou, founder and CEO of the personal finance websites CardHub and WalletHub.

But consumer watchdogs warn that there are plenty of ways for shoppers to get caught paying far higher rates than they'd expect from what's marketed as a "no-interest-if-paid-in-full" deal. It's something to keep in mind if you're heading out for Super Saturday — the last Saturday for shopping before Christmas.

HOLIDAY SHOPPING: Get the latest news, tips for this year's shopping season

About 43% of borrowers with not-so-great credit — consumers with credit scores below 660 and known as subprime borrowers — did not pay off all their balance before interest kicked in when they participated in a deferred-interest program, according to an October report by the Consumer Financial Protection Bureau.

"Deferred-interest products can be risky for consumers in the best of circumstances," Richard Cordray, director of the CFPB, said in a statement.

This type of deal can work for people who carefully watch due dates and who could pay cash on the spot anyway.

But many still could start out with good intentions to pay off the bill in 12 months or 18 months. But say a monthly payment is mailed late during that time. Or the furnace breaks down, the tax refund doesn't arrive on time, someone gets sick or loses a job.

About 12% of consumers with the best credit did not pay off the bill in full and triggered interest charges with those deferred-interest programs, the CFPB said.

!

"Lenders count on the fact that some percentage are going to trip up," said Chi Chi Wu, staff attorney for the National Consumer Law Center in Boston.

Consumer advocates would like to see deferred-interest plans banned, and some say the programs are one of the "nastiest tricks and traps" that remain after the Credit Card Accountability Responsibility and Disclosure Act of 2009 eliminated many abusive practices with credit cards.

Regulators charge that some deceptive enrollment practices can take place with "no interest if paid in full" products.

I've written about some of the troubles faced by consumers who take out such loans for medical procedures. In 2011, I wrote about a Pinckney woman who financed $5,500 for dentures using a 0% introductory rate. But she was hit later with a 22% rate and her bottom dentures weren't finished correctly. The dental chain — Allcare Dental — went out of business, and she was struggling to pay off more than $2,000 on that high-rate card.

Early in December, the CFPB announced an enforcement action against GE Capital Retail Bank and its subsidiary CareCredit. GE Capital didn't acknowledge any wrongdoing in consenting to the order.

"At doctors' and dentists' offices around the country, consumers were signed up for CareCredit credit cards they thought were interest-free, but were actually accruing interest that kicked in if the full balance was not paid at the end of a promotional period," the CFPB noted.

The promotional periods ranged from six months to 24 months, and the cards could accrue interest at 26.99%. If the patient did not pay the full balance by the end of the promotional period, the consumer became liable for all of the accrued interest.

More than 1.2 million consumers could be eligible for refunds totaling $34.1 million. Cardholders who meet the criteria for filing a claim will be sent a form from CareCredit within the next 120 days.

"Medical debt is already a big problem for many Americans. Poor credit car! d transpa! rency should not be making the problem even worse," the CFPB's Cordray said.

CareCredit said the lender has high customer satisfaction ratings and cooperated with the CFPB. CareCredit said it looks forward to providing consumers access to non-emergency health care and veterinary services from 175,000 providers. As part of the agreement, CareCredit representatives, not the doctors' office employees, would work with enrolling consumers for certain transactions that exceed $1,000 now.

For holiday shoppers, consumers need to realize that some deferred-interest offers are easier to understand than others. CardHub did a 2103 deferred-interest survey of some offers and noted not all companies are clear about their policies.

Pay attention to what kind of plastic you sign up for during the holidays. You'd still need to make monthly payments even during a deferred-interest promotional period.

"It's very hard to explain how deferred-interest works to some consumers," Wu said.

That 0% can hook you to buy more and, if you're not lucky, leave you on the hook for paying much more in interest than you expected.

Contact Susan Tompo at stompor@freepress.com

Tesla and Europe: A Match Made in Heaven?

The Fool's own senior auto analyst, John Rosevear, sits down with Richard Engdahl for an in-depth look at Tesla (NASDAQ: TSLA) and the electric vehicle market, as well as Chrysler's unique situation with Fiat (NASDAQOTH: FIATY).

The economic crisis in Europe has slammed the auto industry as a whole, but luxury vehicles aren't doing so badly. Coupled with governments that tend to smile on green technologies, Tesla has enjoyed a warm reception Europe.

A full transcript follows the video.

Richard Engdahl: You mentioned briefly overseas sales for Tesla. It strikes me that Europe is perhaps a better place to sell electric vehicles. On the other hand, maybe the U.S. is a better place to sell premium vehicles. How does the overseas market look for Tesla?

John Rosevear: Well, on the one hand we look at Europe -- and particularly Western Europe -- there's a recession going on. New car sales in general are at terrible lows right now and the mainstream automakers in Europe are having a lot of trouble.

Enter Tesla that walks in. They're competing with a novel product in the luxury space. Luxury cars haven't actually done that badly. Go to a place like Germany, they're still selling plenty of BMWs and Mercedes and Audis in Germany. Britain is doing well. France is doing reasonably well, and the Scandinavian countries are doing fairly well.

I understand Tesla's had a really wonderful recession in, I think Norway. They sold a whole bunch as soon as it opened in Norway. It was like, "Whoa, Norway. OK."

With some of these European governments there's more support for electrification. There's more support for infrastructure. There are tax credits and tax breaks and so forth, because they want to move the country more in that direction.

We have some of that here, of course. We have the tax breaks, but we don't have quite the national support for electrification that you could do in a place like Denmark or something like that, because it's a smaller country and it can be done a little more easily, to set up that kind of infrastructure.

Engdahl: Is there any infrastructure -- speaking of -- is there any more government response to electric vehicles in Europe, as far as setting up charging stations and the like?

Rosevear: I'm not current on all of it. Some of the European governments -- the Western European governments -- I know Germany has done some stuff. I know that a couple of the Scandinavian countries have tried to move it forward.

The EU in general, of course, wants to push toward greener outcomes for motor vehicles in general, so there's some support there. The nature and specifics of it, I don't have that in hand.

Stocks weak as U.S. shutdown looms

Click on chart to track premarkets

NEW YORK (CNNMoney) Stock markets are set for a sell-off Monday as political squabbling in Washington threatens to lead to a government shutdown at midnight.

U.S. stock futures were all down by roughly 0.8% as investors lose faith in their political leaders and worry about the effect that a shutdown could have on the U.S. economy.

"If nothing is agreed by tonight, which seems likely, there will be an economic hit as some [government] employees are put on unpaid leave and non-essential government services close," explained economist Robert Wood from Berenberg Bank.

Monday is the last day of the month and the third quarter. Both the Dow Jones industrial average and the S&P 500 index have risen by well over 3% so far in September, hitting record highs as investors cheered continued stimulus by the U.S. Federal Reserve. All three indexes are up for the quarter, led by the Nasdaq, which has risen 11%.

But markets have pulled back as the shutdown looms and the U.S. nears its debt ceiling, a limit on the amount it can borrow. If the government hits its debt ceiling in mid-October, it will not be able to pay its bills and will default, though many people believe a last-minute solution will be found.

U.S. stocks fell Friday. The Dow and S&P finished the week with a 1% loss, though the Nasdaq eked out a gain.

European markets were all falling in midday trading, with renewed political turmoil in Italy further undermining sentiment. Of the major indexes, the CAC 40 in Paris was deepest in the red, declining by 1.3%.

Italian markets took a hit after Silvio Berlusconi pulled his support for the country's coalition government over the weekend, threatening early elections. The main Italian stock index fell by over 1.5% and yields on ! 10-year government bonds edged higher.

"Berlusconi has thrown Italian politics into potential chaos again after ordering his five ministers to resign from the coalition," wrote Deutsche Bank analyst Jim Reid, in a market report. "It's an impressive feat to knock off a potential U.S. government shutdown from top billing but Berlusconi might have achieved it."

Asian markets closed with losses, though the Shanghai Composite index bucked the trend and moved higher. China launched a free trade zone in the city on Sunday, an experiment in promoting trade, expanding foreign investment access and liberalizing the financial sector.

Next Banking Crisis an 'Easy Call': Mayo

NEW YORK (TheStreet) -- A sudden, sharp rise in interest rates will drive the next banking crisis, according to CLSA analyst Mike Mayo, who says the issue is an "easy call."

During a panel discussion after receiving the Daniel J. Forrestal III Leadership Award for Professional Ethics and Standards of Investment Practice from the CFA Institute, Mayo dismissed a question about efforts by regulators to improve mortgage underwriting standards.

"That's not the next problem. Let me interrupt. Mortgages are going to be fine," he said. "Number one on my list is going to be interest rate risk at these large institutions. We haven't had a big interest rate shock since 1994. So if I pick one risk in the next five to 10 years I have to come back to this room it's going to be interest rate risk. We should reallocate a lot of examiners from the mortgage area to the interest rate risk area. It's an easy call."

Mayo cited JPMorgan Chase's (JPM) more than $6 billion in trading losses on credit derivatives during 2012 -- many of them tied to a former trader named Bruno Iksil who became known as the "London Whale" -- as an early harbinger of the potential problems that may arise from a sharp rise in interest rates.

"I do think it was simply a canary in the coalmine: JPMorgan's whale. The way it came about is unique to JPMorgan but as far as having excess deposits which are invested and having a mismatch -- that's the canary in the coalmine. It's not even a tough call. You know we're going to have an interest rate spike at some point -- we don't know when -- and when that happens, that's when we're going to see damage," Mayo said.

Another problem area Mayo foresees is commercial lending.

"Some of your traditional banks... are making overly aggressive commercial loans right now," he says, adding the problem is something "we're hearing from all the banks."

-- Written by Dan Freed in New York.

Follow @dan_freed

Workers Think They’re Maxing Out 401(k)s at $8,000

The IRS announced Thursday that the annual contribution limit for 401(k)s will remain unchanged at $17,500 for 2014, but it’s not likely to affect participants’ contributing behavior. The son-to-be-released Mercer Workplace Survey found that the average participant believes the deferral limit is $8,532, almost half the actual limit. That gives them the dangerous perception that they’re close to the maximum contribution when they’re actually far from it.

Mercer found that respondents expect to contribute just under $7,500 to their 401(k) plan in 2014.

“Plan sponsors need to do a better job of communicating the total opportunity employees have when contributing to their 401(k) plan,” Dave Tolve, U.S. leader of Mercer’s defined contribution administration business, told ThinkAdvisor on Monday. “When you start to dig into it further and start to think about the different demographics, it’s important for plan sponsors to communicate specific to their different employee demographics.”

Tolve blamed automatic features for at least some of the problem. “Automatic enrollment is pretty pervasive in 401(k) plans today. It’s great for getting employees to start contributing, but it often leads to inertia where many employees say, ‘This is great. I’m enrolled in my 401(k) and I don’t need to do any more.’”

Tolve referred to past Mercer research that shows people who contribute at the default level tend to contribute less than people who actively make a decision to contribute.

“Automatic enrollment has its place,” he said, “but it’s important to communicate to employees that there’s a lot more room to contribute beyond the default.”

Automatic escalation isn’t a perfect solution, either. “It’s a great feature, but it alone is not enough," he said. "A lot of plans will start someone at 3% and increase by 1% per year. That’s better than that employee not enrolling at all, but there’s an additional step that a lot of plan sponsors ignore, and that’s letting them know that there’s a much greater opportunity in 401(k) plans and they should be saving more.”

Another contributing factor is sponsors overemphasizing the company match as a target deferral rate rather than encouraging them to contribute as much as they can, regardless of the level their employer will match, Tolve said.

Tolve acknowledged that for some participants, saving the maximum allowable contribution just isn’t realistic. “Someone who makes $30,000 a year, it might not be feasible to contribute $17,500, but it would benefit higher-paid employees for plan sponsors to communicate to them the much greater opportunity to contribute to their plans.” There was little difference in expected contributions by age group. The 18 to 34 age group anticipate contributing $7,535; 35- to 49-year-olds said they would contribute $7,667, and 50- to 64-year-olds expect to contribute just $6,673.

“It’s surprising to see among older employees, especially among those over 50 who can add in the catch-up contributions as well,” Tolve said.

Another drawback to small contributions, Mercer noted, was that participants aren’t taking advantage of the tax efficiency 401(k) plans provide. More than a third of respondents said they would increase the contributions they made in the last year if they could, even though most respondents are saving in other plans as well as their 401(k).

“Our historical survey shows us that people who work with financial advisors have much higher levels of confidence in their ability to retire when they want to, their ability to maintain their lifestyle in retirement and their ability to leave money for their heirs,” Mercer said.

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Check out 4 Things for Fiduciaries to Consider With IRA Rollovers on ThinkAdvisor.

Best performing asset classes of 2012: Equity or currency?

Here is a quick look:

Equities: The kind of fund flows amounting to USD 23.5 billion makes the Nifty as an outperformer. In absolute terms of rupee Nifty has moved 27-28 percent (in 2012) and 22 percent in dollar terms. That is seconded by MSCI Asia Ex-Japan which has gained about 21 percent. This is not a year of divergence where emerging markets have outperformed and developed markets have been behind. As you can see the Nikkei has been on the radar for the last few sessions because of the Bank of Japan (BOJ) easing prospects, but on 2012 basis in terms of dollars Nikkei is up only 7 percent.

Currencies: The USD-JPY has given a return of 10 percent. So that is something you need to factor in. In terms of the Euro-Dollar we have seen a marginal gain, it is just about 1.5 percent. The Dollar Index has actually slipped about 0.5 percent or largely in flat territory, but USDINR after a huge move last year seen another weakening of about 4 percent this time around.

Lucky 13! Stocks that can cheer your portfolio next year

Bond Markets: Aside of equities if there was potential in something giving you very good returns; it was those high risk bond markets which actually gave you a lot of rally. ML High Yield Bonds are giving 19 percent, that gives even developing market (DM) equities a run for money. Next up is German 10 year bond that is 8.5 percent and the Spanish 10 year bonds despite all the concerns are giving an 8 percent returns. In comparison the US bond market gave a 4 percent return whereas the Japanese 10 year bond for obvious reasons is giving a negative return of about 5.5 percent.

Commodities: Commodities have been in focus but it has been a slightly range bound year. The CRB Index itself is down 4 percent because of soft commodities this time around. This time gold is still up 6 percent despite all the fall in terms of dollars, although it has broken down on the range. Copper is up 3 percent while Brent Crude very flat, up just 1 percent at this point.

Assurant Shares Hit 52-Week High - Analyst Blog

On Jul 8, 2013, the shares of Assurant Inc. (AIZ) hit a 52-week high of $51.97. The momentum was driven by strong execution in its various segments as well as a favorable operating performance from the past several quarters. Assurant delivered earnings surprise in 3 of last 4 quarter with an average beat of 36.8%. Assurant has a diverse product base and distribution platform with established presence in various niche markets, enabling it to generate sustained solid operating earnings. The company maintained an adequate risk-adjusted capitalization, low debt-to-capital ratio and adequate interest coverage ratio. Going forward, we expect Assurant's Specialty line of business to benefit from growth in multi-housing loans and higher volume in lender-placed loan portfolios in the later half of 2013. Also, the Solutions line business will see higher top-line growth from increases in domestic as well as international businesses. Moreover, the company has geared itself with product mix changes in the health line of business to position itself for the changed market as a result of Healthcare reform. We expect these initiatives will bring long-term earnings growth from this segment. Assurant also boosts a strong balance sheet with efficient capital management. It supports the company to increase dividend payout and well as ensure steady buybacks which in turn drives bottom-line earnings growth. Valuation looks attractive for Assurant. The shares are currently trading at a discount to the peer group average on a forward price-to-earnings basis and a slight discount on a price-to-book basis. The return on equity of is much higher than the peer group average. Also, the year-to-date return from the stock is 49.2%, above S&P's return of 15.0%. Assurant carries a Zacks Rank #3 (Hold). Multi-line insurers Cigna Corp. (CI), Enstar Group Limited. (ESGR), CNO Financial Group Inc. (CNO), among others, are worth taking a look. All these stocks carry Zacks Rank #1 (Strong Buy).

Summer Money-Making Opportunities For Finance Students

While student debt has always represented a controversial and prominent issue, its recent ascent has triggered even greater consternation. Not only are the current generation of students borrowing more to fund their education, but they are also are entering an employment market that is volatile and populated with low-paying job opportunities. As a result of this, the value of overdue student loans has reached an all-time high in the United States, while nearly a third of of 20 to 24-year-old graduates are currently unemployed.

The cumulative amount of student debt in America has now reached a staggering $1 trillion; this represents the single-largest category of consumer liability outside of mortgages. The consequences of this are far reaching for graduates in the current economy, as they are unable to establish savings or fund the purchase of a house until they have found viable work and begun to repay their debt. Given that the rate of self-employment also fell by 19% among individuals aged 25 and under between 2005 and 2010, it is clear that soaring debt levels are also preventing students from becoming entrepreneurs and using their skills to create opportunities for others.

With this in mind, it is increasingly important that students seek out relevant and gainful methods of employment while in college. Whether they use their skills to secure temporary employment or establish an entrepreneurial venture, this willingness to work will enable them to create new income streams and acquire practical experience within a chosen market or industry. The latter can prove to be particularly valuable, especially when you consider rising graduate unemployment and the competition that exists for lucrative, industry specific jobs.

So, which summer jobs and work opportunities should students pursue in 2013? Consider the following options:

Become a Tutor or Mentor
With technology giant Intuit predicting that freelancers will make up 40% of the U.S. workforce by 2020, it is clear that the ability to effectively market your skills will be crucial in future employment markets. This particular talent is also becoming increasingly important for those who seek more traditional roles of employment, especially when you consider that modern recruiters are far more interested in how your skills may be deployed rather than their individual nature. By first understanding your core skills and learning how them to apply them in variable circumstances, it is possible to maximize your earning potential.

As a student, your most marketable skills will relate to your knowledge base and specific area of academic expertise. You may also have particularly strong social skills, and these attributes can be used to successfully mentor or tutor younger students. Just as individuals in employment may seek out guidance and actionable advice from more senior colleagues, so too are young students keen to benefit from those who have experience in following a similar academic course. So long as you focus on your areas of strength and can help others to recognize their innate abilities, you can generate significant income while sharing the benefit of your practical experience.

Embrace the World of Blogging
The term "accidental entrepreneur" originated from the Great Recession, as the onset of economic crisis ravaged American behavioral patterns and forced individuals to work independently out of necessity rather than desire. It is also to important to recognize the role of technology in this drive, however, as independent earning techniques such as blogging have been made increasingly accessible by innovation and advancement.

Blogging itself has encountered rapid growth during the last decade, with Technorati reporting that the number of registered Internet blogs rose from 4 million to 70 million between 2004 and 2007. As one of the world's most prominent growth industries, blogging represents a genuine money-making opportunity for students. Boasting low-cost start-up fees and access to easily manageable software, blogging can generate significant profits and help to raise awareness concerning a specific brand, cause or project.

Once again, the key is to focus on your core knowledge base and use this to create educational and engaging content. You can even market your written communication skills to firms that are hoping to promote themselves through guest blogging services. When you consider that the highest-earning blog of 2012 turned over an estimated $30,000 per day, there is ample opportunity for you to earn and gain experience is a thriving market.

Profit from Your Carefully Created Essays and Revision Materials
There have been additional innovations that have created earning opportunities for students. Consider the development of website building packages or resources that enable individuals to build their own mobile applications. Take the experience of student Nick D'Aloisio, for example, who designed an app that aggregates international news stories and condenses them for mobile devices. After further development, the young entrepreneur subsequently sold the application to Yahoo for a grand total of $30 million in March of this year.

Such an endeavor may compromise your studies, however, especially when you consider the effort that needs to be invested into the design process and subsequent negotiations. Fortunately, there are far simpler ways of earning money through technological platforms, with Gradesaver.com providing a relevant example. Using this resource, you can sell your completed academic works, essays and study notes for research purposes, earning up to $25 for every published piece of content. These items have practical value, as they can be used as reference points by fellow students, while the site itself retains the copyright so that they cannot be plagiarized or used inappropriately.

The Bottom Line
While there are many more options available to students who are looking to make money and develop practical work experience, these earning methods offer particular value. More specifically, they enable students to generate additional income without compromising their studies, while tutoring and blogging in particular provide actionable experience that can be taken forward into the current employment market. In the quest to reduce student debt and create a brighter professional future, enjoying a profitable summer may provide the ideal starting point.

This Metric Suggests You're Right to Own CARBO Ceramics.

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

Basic guidelines
In this series, I examine inventory using a simple rule of thumb: Inventory increases ought to roughly parallel revenue increases. If inventory bloats more quickly than sales grow, this might be a sign that expected sales haven't materialized. Is the current inventory situation at CARBO Ceramics (NYSE: CRR  ) out of line? To figure that out, start by comparing the company's inventory growth to sales growth. How is CARBO Ceramics doing by this quick checkup? At first glance, not so great. Trailing-12-month revenue decreased 1.3%, and inventory increased 7.5%. Comparing the latest quarter to the prior-year quarter, the story looks potentially problematic. Revenue shrank 9.5%, and inventory increased 7.5%. Over the sequential quarterly period, the trend looks worrisome. Revenue dropped 3.9%, and inventory grew 4.8%.

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

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

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

What's going on with the inventory at CARBO Ceramics? I chart the details below for both quarterly and 12-month periods. (CARBO Ceramics reports raw materials and work-in-progress inventory combined.)

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

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

Let's dig into the inventory specifics. On a trailing-12-month basis, raw materials inventory was the fastest-growing segment, up 49.8%. On a sequential-quarter basis, raw materials inventory was also the fastest-growing segment, up 9.9%. Although CARBO Ceramics shows inventory growth that outpaces revenue growth, the company may also display positive inventory divergence, suggesting that management sees increased demand on the horizon.

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

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Add CARBO Ceramics  to My Watchlist.

Pentagon Awards $2.5 Billion in New Contracts Friday

The Department of Defense ended the week with a bang (if you'll pardon the expression) Friday. Across a field of 26 contracts awarded, the Pentagon laid out plans to spend nearly $2.5 billion in total. A few of the publicly traded companies winning awards included:

Safran (NASDAQOTH: SAFRY  ) subsidiary Messier-Bugatti-Dowty. The French defense contractor won an $80.6 million firm-fixed-priced requirements contract to manufacture replacement parts for the carbon brake system on the Boeing KC-135 Stratotanker aerial refueling aircraft. Messier will perform work, as and when requested by the Air Force, out of its U.S. facility in Walton, Ky., and aims to complete work on the contract by Dec. 31, 2018. Sysco (NYSE: SYY  ) landed a $67.5 million fixed-price with economic-price-adjustment bridge contract to supply food and beverages to Department of Defense and non-Department of Defense customers in Virginia, Honduras, and at Guantanamo Bay, Cuba through June 29, 2014. Exelis (NYSE: XLS  ) received a $20.3 million contract modification to fund the purchase of AN/SPS-48G(V) radar modification kits to be used in a U.S. Navy program dubbed the "Recovery Obsolescence Availability Radar" (ROAR ). ROAR aims to extend the service lift of old radar systems used by the Navy. Exelis is due to deliver the kits by October 2015. Engility (NYSE: EGL  ) received a $12.5 million contract modification of its own, when the Navy exercised an "option" to have Engility provide additional engineering services in support of the Joint Precision Approach and Landing Systems (JPALS) and the Navy Unmanned Combat Aerial Systems (UCAS) programs through January 2014. JPALS is actually a Raytheon program in its origin, and aims to improve landing patterns by military aircraft with use of GPS signals. UCAS, as the name implies, is an experimental program to develop pilotless fighter jets for the U.S. Navy. Last and least (at least in dollar value), Harris Corp (NYSE: HRS  ) won a $9.4 million contract modification to supply the Navy with AN/WSC-6 E(V)9 satellite communication (SATCOM) systems. Work on this contract should wrap up by June 25, 2014. Options attached to this modification, however, could ultimately increase its value to Harris to as much as $40.5 million, and extend its duration through March 2016.

Costly Risk In New Oil Exploration

Over the past few years, the large Western oil majors have been plagued by projects running substantially over budget, and taking much longer to complete than initially estimated. These hurdles are part of the broader challenge facing oil companies -- how to cope with the end of the era of "easy oil." Let's take a closer look at one project -- the Kashagan oil field -- that epitomizes these challenges.

A primer on Kashagan
Kashagan is a vast untapped oil field in Kazakhstan with massive hydrocarbon potential. Yet, despite its operators -- a consortium of companies including ExxonMobil (NYSE: XOM  ) , Eni, and Royal Dutch Shell -- having plowed more than $30 billion into the project over the past decade, the field has yet to produce a single drop of oil. 

Exploration in the region first began in the early 1990s after the dissolution of the Soviet Union, and was led by companies including Eni, Exxon, Shell, Total SA, Statoil, BP (NYSE: BP  ) , and BG Group. While initial prospecting pointed to a potential 10-billion barrels of recoverable oil, it also made clear some of the most daunting challenges that drillers would have to overcome in order to exploit Kashagan's resources.

Technical and other challenges
For starters, the reservoir lies about 12,000 feet below the northeast Caspian Sea, which freezes for several months during the year. Since this tends to damage or destroy typical offshore drilling equipment, operators are forced to construct concrete drilling blocks, which don't come cheap. In addition to these weather-related challenges, Kashagan's development has been beset by difficult supply routes and clashes with local government officials.

Delays and other issues
As a result, its operators have repeatedly failed to meet deadlines and start-up dates. Last year, Eni said Kashagan would start up in March this year -- a deadline it later pushed back to June. But that target won't be panning out, either. Earlier this month, Eni pushed the deadline even further out to October this year.

According to a spokesman for the North Caspian Operating Company, the reason for Kashagan's numerous delays has to do with the overwhelming technical complexity of the project, as well as its operators' vigilant approach to development, which they've adopted to minimize problems like oil and gas leaks. 

Due to the delays, cost overruns, and uncertainties, one initial partner in the project, ConocoPhillips (NYSE: COP  ) , even decided to back out. The company recently announced that it is looking to sell its 8.4% stake in the venture, which Kazakhstan has the right to buy. The Kazakh government will decide by July 2 how it wishes to proceed. 

Kashagan's implications for oil companies
Kashagan highlights the grave difficulties facing the large Western oil companies in an era where fields of "easy oil" have already been tapped, or are zealously guarded by national oil companies.

As Steve Coll highlights in his excellent recent book, Private Empire: ExxonMobil and American Power, the resource nationalism that emerged among the large oil-producing states in the world over the past few decades has forced the Western oil majors to embark on challenging journeys to all corners of the globe in search of oil.

But, like Kashagan, most of these projects require massive amounts of upfront investment, yet provide no guarantee about future returns. The bottom line is that, despite the fact that ExxonMobil and some other integrated oil majors are exceptionally well managed, they're still operating in an environment fraught with risk. Clearly, BP -- still recovering from the Deepwater Horizon incident's fallout -- is a poster child for this harsh reality.

This inherent friction of balancing risk minimization with the need to explore for oil in some of the riskiest locales around the globe is one major reason why investors should be wary of the numerous countries these companies operate in, and the level of risk -- weather-related, cost-related, political, social, and otherwise -- that their operations pose.

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Nordic American Tankers Pumps Out New Dividend

Nordic American Tankers (NYSE: NAT  ) is presenting a calm sea to its stockholders by keeping its upcoming dividend level with the previous payout. The company has declared a distribution of $0.16 per share of its common stock for its Q1, which its expects to hand out "on or about" May 14. It expects that the record date will be April 30.

That preceding dividend was paid in late January. Before that, the company had disbursed $0.30 per share every quarter dating back to May 2011.

In the press release announcing the Q1 payout, the company seemed to address potential disappointment at the lack of an increase by writing: "the level of the declared dividend should be seen in the context of planned fleet expansion. Expansion is essentially the same as investing in the future."

It added that the upcoming distribution is to be its 63rd consecutive quarterly dividend payment, dating to the fall of 1997.

The dividend annualizes to $0.64 per share. That yields 6.9% at Nordic American's current stock price of $9.24.

iGATE Beats Up on Analysts Yet Again

iGATE (Nasdaq: IGTE  ) reported earnings on April 11. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), iGATE beat slightly on revenues and crushed expectations on earnings per share.

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

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

Revenue details
iGATE logged revenue of $274.9 million. The eight analysts polled by S&P Capital IQ predicted sales of $272.0 million on the same basis. GAAP reported sales were the same as the prior-year quarter's.

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

EPS details
EPS came in at $0.51. The eight earnings estimates compiled by S&P Capital IQ forecast $0.42 per share. Non-GAAP EPS of $0.51 for Q1 were 34% higher than the prior-year quarter's $0.38 per share. GAAP EPS of $0.34 for Q1 were 55% higher than the prior-year quarter's $0.22 per share.

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

Margin details
For the quarter, gross margin was 38.1%, 210 basis points worse than the prior-year quarter. Operating margin was 19.1%, 80 basis points better than the prior-year quarter. Net margin was 12.6%, 350 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $280.3 million. On the bottom line, the average EPS estimate is $0.36.

Next year's average estimate for revenue is $1.14 billion. The average EPS estimate is $1.65.

Investor sentiment

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on iGATE is outperform, with an average price target of $21.57.

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Weekly 52-Week Highs Highlight

According to GuruFocus list of 52-week highs; Genuine Parts Co, Morgan Stanley Capital Trust IV, Brookfield Office Properties Inc, UnitedHealth Group Inc, and Crown Castle International Corp have all reached their 52-week highs.

Genuine Parts Co (GPC) Reached the 52-Week High of $88.55

Genuine Parts Company is a Georgia corporation incorporated on May 7, 1928. Genuine Parts Co has a market cap of $13.56 billion; its shares were traded at around $88.55 with a P/E ratio of 20.20 and P/S ratio of 0.93. The dividend yield of Genuine Parts Co stocks is 2.56%. Genuine Parts Co had an annual average earnings growth of 6.60% over the past 10 years. GuruFocus rated Genuine Parts Co the business predictability rank of 5-star.

Genuine Parts has released its second quarter results ended June 30, 2014. Sales during the quarter totaled $7.5 billion, which was 10% higher than in the prior year quarter. Net income for the quarter was $355.2 million compared to $360.7 million last year. Second quarter 2013 net income included a beneficial adjustment of $36 million. Without this adjustment, net income for the second quarter of 2014 was 9% higher than last year.

CEO Thomas Gallagher bought 5,000 shares of GPC stock on 08/13/2014 at the average price of $84.

Morgan Stanley Capital Trust IV (MWG) Reached the 52-Week High of $25.30

Morgan Stanley Capital Trust IV was originally incorporated under the laws of the State of Delaware in 1981, and its predecessor companies date back to 1924. Morgan Stanley Capital Trust Iv has a market cap of $13.33 billion; its shares were traded at around $25.30 with and P/S ratio of 35445.50. The dividend yield of Morgan Stanley Capital Trust Iv stocks is 1.54%.

Brookfield Office Properties Inc (BPO) Reached the 52-Week High of $20.52

Brookfield Office Properties Inc. was formed under the Canada Business Corporations Act on September 5, 1978 to continue the business of Canadian Arena Corporation which was incorporated in 1923 under the Quebec Companies Act, 1920. Brookfield Office Properties Inc has a market cap of $10.41 billion; its shares were traded at around $20.52 with a P/E ratio of 19.50 and P/S ratio of 4.56. The dividend yield of Brookfield Office Properties Inc stocks is 2.73%. Brookfield Office Properties Inc had an annual average earnings growth of 16.70% over the past 10 years.

Brookfield Office Properties Inc. has released its second quarter 2014 results. Net income attributable to shareholders was $768 million for the quarter compared to $441 million in the same quarter of 2013. Commercial property revenue was $597 million versus $569 million last year.

UnitedHealth Group Inc (UNH) Reached the 52-Week High of $88.18

UnitedHealth Group Incorporated is a Minnesota corporation incorporated in January 1977. Unitedhealth Group Inc has a market cap of $85.68 billion; its shares were traded at around $88.18 with a P/E ratio of 16.20 and P/S ratio of 0.70. The dividend yield of Unitedhealth Group Inc stocks is 1.49%. Unitedhealth Group Inc had an annual average earnings growth of 13.70% over the past 10 years. GuruFocus rated Unitedhealth Group Inc the business predictability rank of 4.5-star.

For its third quarter of 2014, the company reported revenues of $32.8 billion, up 7% year-over-year. Operating earnings were up 5% to $2 billion. Third quarter net earnings grew 7% to $1.63 per share. The company also reported cash flows from operations of $3.2 billion, which was double the level of net income for the quarter.

Director Richard T Burke sold 100,000 shares of UNH stock on 09/17/2014 at the average price of $87.03. Director Douglas W Leatherdale sold 15,800 shares of UNH stock on 09/16/2014 at the average price of $87.21.

Crown Castle International Corp (CCI) Reached the 52-Week High of $80.84

Crown Castle International Corp is incorporated in the State of Delaware. Crown Castle International Corp has a market cap of $26.99 billion; its shares were traded at around $80.84 with a P/E ratio of 206.80 and P/S ratio of 7.74. The dividend yield of Crown Castle International Corp stocks is 1.30%. Crown Castle International Corp had an annual average earnings growth of 24.10% over the past 10 years. GuruFocus rated Crown Castle International Corp the business predictability rank of 3.5-star.

The company reported second quarter net income of $23 million, including $45 million loss on redemption of debt, compared to income of $52 million for the same quarter last year.

Check out the complete list of 52-Week Highs.

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IRA Rollovers Face Scrutiny by ERISA Panel

The volume of retirement assets rolling out of defined contribution plans has gotten the Department of Labor’s ERISA Advisory Committee’s attention. 

IRAs, along with other investment vehicles that fall outside the jurisdiction of ERISA’s oversight, are growing more popular as boomers retire and move their retirement savings out of employer-sponsored plans. 

In response, the ERISA Advisory Council this week said it plans to examine some of “the factors leading participants to leave their assets in or move them out of a plan.” 

Its inquiry also will look into the habits of retirees moving out of defined benefit plans. IRAs often impose fees that are higher than those seen in 401(k) plans. 

The council’s notice suggests that the Department of Labor wants to know whether the existing regulatory structure governing employer-sponsored plans is affecting how retirement assets are rolled over. 

As part of its work, fees on assets, the range of investment options offered to enrollees, the ultimate extent of investors’ personal control, and the consequences of sponsors’ fiduciary obligations on investment decisions will all be explored, according to a statement from the Advisory Council. 

The council also wants to better understand how existing regulations affect asset movements when workers change jobs, and, ultimately, how the choice to liquidate employer-sponsored retirement plans is weighed by individuals.

Understanding when asset rollovers are in the best interest of individuals — and when they are not — will shed light on whether there are “positive steps that can be taken to further encourage individuals to stay in the system if it makes sense for them to do so,” the council said in its statement. 

The council said it will examine what employer are communicating to workers when they leave their jobs and “whether the quality of the participant’s decision-making can and should be enhanced by communication or other plan design features from the plan sponsor.”

“While the plan sponsors may (or may not) have an interest in keeping participants’ assets in the plan ...  they may be reluctant to provide meaningful communication to the departing participant out of concern for potential fiduciary liability,” it said.

According to Boston-based research firm Cerulli Associates, $324 billion was rolled into IRAs last year, an increase of 17 percent over the previous year and up about 60 percent over the past decade.

IRAs today hold $6.5 trillion, more than the $5.9 trillion in 401(k)-style accounts.

A recent Bloomberg investigation found that former employees at major companies such as Palo Alto, California-based Hewlett-Packard Co. and United Parcel Service Inc., as well as AT&T, have complained that sales representatives lured them into rolling over their 401(k) nest eggs into unsuitable IRA investments. The investigation was based on interviews with retirees and brokers, confidential arbitration records and other documents, Bloomberg said.

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Don't Look Now, but BlackBerry Might Not Be Dead After All

Whenever the conversation in the financial media turns to BlackBerry Limited (NASDAQ: BBRY  ) an abundance of opinion inevitably follows. Depending on who you ask, BlackBerry is either a zombie company experiencing the death rattle of its final days, or a wondrous turnaround story on the brink of a magnificent comeback.

Critics contend that the company's hardware business is nonexistent, noting its dwindling market share. Indeed, it's true that the hardware side of the business is essentially a duopoly, controlled almost entirely by giants Apple (NASDAQ: AAPL  ) and Samsung (NASDAQOTH: SSNLF  ) .

But BlackBerry's loyal enthusiasts claim the company is making great strides in hardware internationally. And, the company is developing its services business, where it still has a competitive edge. Plus, a few billion in cash on the books doesn't hurt.

While those on each side of the BlackBerry debate are likely entrenched in their opinion, at least for one quarter, the bulls appear to be on top.

BlackBerry's less-than-awful quarter
When a company collapses as far and as quickly as BlackBerry did, it doesn't take much to inspire a short-covering rally. Putting up a quarterly performance that simply proves you haven't gone out of business is usually enough to see a knee-jerk rally.

To be sure, BlackBerry still posted a year-over-year decline in revenue, and lost money after excluding a debenture fair value adjustment and a sizable restructuring charge. Loss in terms of diluted earnings clocked in at $0.37 per share in the first quarter, which is more than double the loss from the same quarter one year ago.

But sequentially, BlackBerry improved. The company's net loss shrank versus the prior quarter. And, separately, BlackBerry is showing several signs of a turnaround.

Its cash position grew to $3.1 billion, up from $2.7 billion one quarter prior. Gross margin expanded five percentage points from the previous quarter, thanks to BlackBerry's massive cost cuts. The company has virtually cut costs to the bone, which is what's really driving the profit improvement. Management slashed operating expenses to $421 million last quarter, down 60% from over $1 billion in the fourth quarter.

Product mix and new markets to fuel BlackBerry's turnaround
BlackBerry's turnaround hopes are highly dependent on its product shift, and its growth in the emerging markets.

BlackBerry's hardware presence is shrinking rapidly, particularly at the consumer level. Technology tracking firm IDC expects that the Android and iOS operating systems will collectively control 95% of operating system market share this year. Clearly, Samsung and Apple are the major vendors contributing to this. By contrast, IDC projects BlackBerry's market share to be below 1%, at just 0.8%. And, by 2018, IDC estimates BlackBerry's share will dwindle further, to just 0.3%.

Fortunately, BlackBerry is building a strong presence in services, which actually comprises the majority of its revenue now. BlackBerry derived 54% of its revenue from services last quarter, compared to just 39% from hardware.

And, BlackBerry has ambitious plans to grow in new geographies. BlackBerry recently launched the new Z3 device in Indonesia, with eight additional countries to come. This fuels management's forecast to break-even on cash flow by the end of the fiscal year.

BlackBerry's turnaround is off the ground, but far from complete
BlackBerry has plenty of fans and critics alike. Those who contend the company is dead have plenty of ammunition for their argument. BlackBerry is still declining, as Samsung and Apple have basically devoured the smartphone industry.

But the past quarter did show signs of progress that need to be acknowledged. BlackBerry's results came in much better than expected. The company is doing well in services and is set to embark on an ambitious growth strategy in new markets.

Whether BlackBerry's comeback is for real remains to be seen. Its performance in the past quarter may turn out to be a flash in the pan, but for now, BlackBerry still has a pulse.

Leaked: Apple's next smart device (warning, it may shock you)
Apple recently recruited a secret-development "dream team" to guarantee its newest smart device was kept hidden from the public for as long as possible. But the secret is out, and some early viewers are claiming its everyday impact could trump the iPod, iPhone, and the iPad. In fact, ABI Research predicts 485 million of this type of device will be sold per year. But one small company makes Apple's gadget possible. And its stock price has nearly unlimited room to run for early in-the-know investors. To be one of them, and see Apple's newest smart gizmo, just click here!