Why Daylight Saving Time is Pointless

From Julie Borowski:

If you woke up today feeling miserable, you’re not alone. As someone who is sensitive to jet lag and time changes, I’ve always dreaded Daylight Saving Time. Enough to write a blog post ranting about it. I woke up this morning cursing the government for making me feel terrible. Someone commented that I blame the government too much. No, no, no. Other people don’t blame the government enough.

Government needs to stop screwing around with time. It is bad for your health, doesn’t save energy, cost a lot of money and is totally unnecessary.

 Daylight Saving Time is bad for your health:

Monday morning risks can be more serious than needing to nap at your desk :researchers at Loyola University School of Medicine report that there are more workplace injuries and traffic accidents the day after we turn our clocks ahead. Heart attack rates increase by as much as 10%. The time change is hardest on those who are chronically sleep deprived: the National Sleep Foundation estimates that more than one-third of Americans are dangerously sleepy.

(h/t United Liberty)

It doesn’t save energy:

In recent years several studies have suggested that daylight saving time doesn’t actually save energy—and might even result in a net loss.

Environmental economist Hendrik Wolff, of the University of Washington, co-authored a paper that studied Australian power-use data when parts of the country extended daylight saving time for the 2000 Sydney Olympics and others did not. The researchers found that the practice reduced lighting and electricity consumption in the evening but increased energy use in the now dark mornings—wiping out the evening gains.

It may actually waste more energy. Indiana started observing Daylight Saving Time in 2005. Hoosiers now pay more on their electric bills than they did before the switch. Why?

That’s because the extra hour that daylight saving time adds in the evening is a hotter hour. “So if people get home an hour earlier in a warmer house, they turn on their air conditioning,” the University of Washington’s Wolff said.

Oh, and it cost a lot of money: 

One economist has estimated the cost of shifting that hour forward due to daylight saving time is $1.7 billion dollars a year. That represents just under $3 per American in lost productivity due to clock resetting.

It’s confusing. People miss appointments. Plus it’s bad for business.

Critics, including those behind the online petition at End Daylight Saving Time, say the time shifting causes more problems than it’s worth by making it exceedingly difficult for businesses to coordinate timetables with markets in Asia and Africa and Europe.

Robert Murphy, adjunct scholar of the Mises Institute, helps prove my point. His Facebook status: “had totally forgotten about Daylight Savings until I noticed my microwave, cell phone, and laptop having a dispute.”

It’s unnecessary. What’s the point anyway?

The name is dumb too. The government cannot “save” any daylight. We have exactly the same amount of daylight as we did before.

Arizona doesn’t observe Daylight Saving Time. There’s a Navajo saying about it.

The government is responsible for my sleep deprivation and any typos in this post.

H/T Economic Policy Journal.

 

TIBCO Software Earnings Preview

Investors are on the edge of their collective seats, hoping that TIBCO Software (Nasdaq: TIBX  ) will top analyst expectations for the third consecutive quarter. The company will unveil its latest earnings on Wednesday. TIBCO Software is a provider of infrastructure software. It offers a range of standards-based infrastructure software solutions that help organizations achieve the benefits of real-time business.

What analysts say:

• Buy, sell, or hold?: The majority of analysts back TIBCO Software as a buy. But with 53.8% of analysts rating it a buy, TIBCO Software is still below the mean analyst rating of its nearest 10 competitors, which average 58.5% buys. Analysts like TIBCO Software better than competitor Progress Software overall. Two out of four analysts rate Progress Software a buy compared to seven of 13 for TIBCO Software. Analysts still rate the stock a moderate buy, but they are a bit more wary about it compared to three months ago.
• Revenue forecasts: On average, analysts predict $281.3 million in revenue this quarter. That would represent a rise of 16.6% from the year-ago quarter.
• Wall Street earnings expectations: The average analyst estimate is earnings of $0.30 per share. Estimates range from $0.29 to $0.31.

What our community says:
CAPS All-Stars are solidly behind the stock with 93.2% assigning it an outperform rating. The community at large backs the All-Stars with 93% granting it a rating of outperform. Fools are bullish on TIBCO Software and haven't been shy with their opinions lately, logging 114 posts in the past 30 days. Even with a robust four out of five stars, TIBCO Software's CAPS rating falls a little short of the community's upbeat outlook.

Management:
TIBCO Software's profit has risen year over year by an average of 42.7% over the past five quarters.

Now let's look at how efficient management is at running the business. Traditionally, margins represent the efficiency with which companies capture portions of sales dollars. The following table shows gross, operating, and net margins over the past four quarters.

Quarter	Q3	Q2	Q1	Q4
Gross Margin	72.3%	71.5%	71.4%	76.0%
Operating Margin	16.0%	13.3%	10.2%	23.5%
Net Margin	10.3%	9.7%	8.6%	15.5%

One final thing: If you want to keep tabs on TIBCO Software movements, and for more analysis on the company, make sure you add it to your watchlist.

Motley Fool newsletter services have recommended buying shares of TIBCO Software. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Earnings estimates provided by Zacks

Top Stocks For 2012-2-24-18

 

Non-GAAP total revenue of $55.4 million increases 49% year-over-year
Non-GAAP operating income of $11.7 million increases 43% year-over-year
Non-GAAP EPS of $0.21 increases 40% year-over-year

BRIDGEWATER, N.J.–(CRWENEWSWIRE)– Synchronoss Technologies, Inc. (NASDAQ:SNCR), the world�s leading provider of transaction management, cloud enablement and connectivity services for connected devices, today announced financial results for the second quarter of 2011.

�We are very pleased with the company�s performance in the second quarter, which led to revenue and profitability that were above the high-end of our guidance,� said Stephen G. Waldis, President and Chief Executive Officer of Synchronoss. �We are making excellent progress with the expansion of our relationships with tier one service providers. We have expanded our AT&T relationship with the addition of a meaningful new channel. We also moved to the second phase of our platform deployment with Vodafone and advanced our work on the deployment of additional ConvergenceNow� Plus+ capabilities with Verizon that are scheduled for the second half of 2011.�

Waldis added, �Synchronoss is benefitting from the investments made in our highly differentiated ConvergenceNow Plus platform. We believe our growing ability to deeply embed Synchronoss directly on devices that take advantage of the new cloud-based capabilities will add significant value to our customers and provide our company with a growing number of significant long-term growth opportunities.�

For the second quarter of 2011, Synchronoss reported generally accepted accounting principles (”GAAP”) net revenues of $54.8 million, an increase of 47% compared to the second quarter of 2010. Gross profit was $28.9 million in the second quarter of 2011. Income from operations, determined in accordance with GAAP, was $4.6 million. GAAP net income applicable to common stockholders was $3.2 million and GAAP diluted earnings per share were $0.06, compared to $0.09 for the second quarter of 2010.

Synchronoss reported non-GAAP net revenues, which adds back the purchase accounting adjustment related to FusionOne�s revenues, of $55.4 million, an increase of 49% compared to the second quarter of 2010. Non-GAAP gross profit for the second quarter of 2011 was $30.8 million, representing a non-GAAP gross margin of 56%. Non-GAAP income from operations was $11.7 million in the second quarter of 2011, representing a year-over-year increase of 43% and a non-GAAP operating margin of 21%. Non-GAAP net income, which takes into account adjustments to non-GAAP income from operations, was $8.0 million in the second quarter of 2011, leading to non-GAAP diluted earnings per share of $0.21, an increase of 40% compared with $0.15 for the second quarter of 2010.

A reconciliation of GAAP to non-GAAP results has been provided in the financial statement tables included in this press release. An explanation of these measures is also included below under the heading “Non-GAAP Financial Measures.”

�Synchronoss� ability to balance investing for growth with driving efficiencies is evidenced by our strong non-GAAP operating income margin and growth for both the second quarter and first half of 2011,� said Lawrence R. Irving, Chief Financial Officer and Treasurer. �As we look to the second half of 2011, we will continue to invest in areas that support the strong growth of our business and new customer initiatives such as the AT&T channel which is expected to launch late in the third quarter. We will continue to target strong profitability margins, and we expect to gain leverage from our investments as volumes scale and automation rates improve as new ConvergenceNow� deployments ramp.�

Other Second Quarter and Recent Business Highlights:

Business related to AT&T accounted for approximately $27.6 million of non-GAAP revenue, representing 50% of total non-GAAP revenue. Business outside of the AT&T relationship accounted for approximately $27.8 million of non-GAAP revenue or a record level of 50% of total non-GAAP revenue for the quarter. Verizon was the largest contributor to Synchronoss� business outside of AT&T, representing over 10% of the Company�s revenue for the quarter.

Conference Call Details

In conjunction with this announcement, Synchronoss will host a conference call on Monday, August 1, 2011, at 4:30 p.m. (ET) to discuss the company’s financial results. To access this call, dial 866-314-4865 (domestic) or 617-213-8050 (international). The pass code for the call is 33953317. Additionally, a live web cast of the conference call will be available on the �Investor Relations� page on the company�s web site, www.synchronoss.com.

Following the conference call, a replay will be available at 888-286-8010 (domestic) or 617-801-6888 (international). The replay pass code is 32736547. An archived web cast of this conference call will also be available on the �Investor Relations� page of the company�s web site, www.synchronoss.com.

Non-GAAP Financial Measures

Synchronoss has provided in this release selected financial information that has not been prepared in accordance with GAAP. This information includes historical non-GAAP revenues, operating income, net income, effective tax rate, and earnings per share. Synchronoss uses these non-GAAP financial measures internally in analyzing its financial results and believes they are useful to investors, as a supplement to GAAP measures, in evaluating Synchronoss� ongoing operational performance. Synchronoss believes that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends, and in comparing its financial results with other companies in Synchronoss� industry, many of which present similar non-GAAP financial measures to investors. As noted, the non-GAAP financial results discussed above add back the deferred revenue write-down associated with FusionOne acquisition, fair value stock-based compensation expense, acquisition-related costs, changes in the contingent consideration obligation, deferred compensation expense related to earn outs and amortization of intangibles associated with acquisitions.

Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. Investors are encouraged to review the reconciliation of these non-GAAP measures to their most directly comparable GAAP financial measures as detailed above. As previously mentioned, a reconciliation of GAAP to non-GAAP results has been provided in the financial statement tables included in this press release.

About Synchronoss Technologies, Inc.

Synchronoss Technologies is the world�s leading provider of transaction management, cloud enablement and connectivity services for connected devices. The company�s technology platforms ensure a simple and seamless on-demand channel for service providers and their customers. For more information visit us at:

Web: www.synchronoss.com

Blog: http://blog.synchronoss.com

Twitter: http://twitter.com/synchronoss

Forward-looking Statements

This document may include certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, plans, objectives, expectations and intentions and other statements contained in this press release that are not historical facts and statements identified by words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “estimates,” �outlook� or words of similar meanings. These statements are based on our current beliefs or expectations and are inherently subject to various risks and uncertainties, including those set forth under the caption “Risk Factors” in Synchronoss� Annual Report on Form 10-K for the year ended December 31, 2010 and other documents filed with the U.S. Securities and Exchange Commission. Actual results may differ materially from these expectations due to changes in global political, economic, business, competitive, market and regulatory factors. Synchronoss does not undertake any obligation to update any forward-looking statements contained in this document as a result of new information, future events or otherwise.

The Synchronoss logo, Synchronoss, ConvergenceNow, InterconnectNow, ConvergenceNow Plus+ and SmartMobility are trademarks of Synchronoss Technologies, Inc. All other trademarks are property of their respective owners.

Source: Synchronoss Technologies, Inc.

Contact:

Investor:
Tim Dolan, 617-956-6727
investor@synchronoss.com
or
Media:
Stacie Hiras, 908-547-1260
Stacie.hiras@synchronoss.com

 

 

 

THIS IS NOT A RECOMMENDATION TO BUY OR SELL ANY SECURITY!

Buffett Finds Another Company Whose Shares Look Cheap: His Own

For the first time in its history, Berkshire Hathaway (BRKB) will buy back its own shares, the company announced this morning. The company says the shares are trading at a significant discount to the firm’s intrinsic value, a metric value investors use to describe the supposed real worth of a company. The move sent shares 5.5% higher early.

“In the opinion of our Board and management, the underlying businesses of Berkshire are worth considerably more than this amount, though any such estimate is necessarily imprecise. If we are correct in our opinion, repurchases will enhance the per-share intrinsic value of Berkshire shares, benefiting shareholders who retain their interest.”

Berkshire said it will buy the shares “at prices no higher than a 10% premium over the then-current book value of the shares.” The company did not say how many shares it expects to buy, just that it won’t allow its cash equivalent balance to fall below $20 billion.

“The repurchase program is expected to continue indefinitely and the amount of purchases will depend entirely upon the levels of cash available, the attractiveness of investment and business opportunities either at hand or on the horizon, and the degree of discount from management�s estimate of intrinsic value. The repurchase program does not obligate Berkshire to repurchase any dollar amount or number of Class A or Class B shares.”

The move could also signal that Berkshire, which has been on the hunt for acquisitions, has not found any other companies worth buying.

Top Stocks For 4/14/2012-2

XplosiveStocks

NavStar Technologies Inc.(www.navstarinc.com) is focused on the creation of products and services that provide tracking and monitoring of vehicles and high value cargo, equipment, and other valuable and personal assets.

NavStar Technologies, Inc.Rumor ReportThe rumor came to our ears two days ago and we have been actively researching this story. After much investigating and questioning we have it from the source.THE RUMOR IS TRUE!We have landed an exclusive interview with Doug Pritt, CEO of NavStar Technologies, Inc. at 9 am Thursday, November 12, 2009. Stay tuned tomorrow for an update from this interview.We feel quite strongly that NavStar Technologies, Inc. has the potential to attain a high of $0.75 if not higher. NVSR.PK is currently at $0.0139.NavStar Technologies, Inc. Chart LinkIn This IssueNavStar Technologies, Inc.Quick Linkswww.navstarinc.comNavStar Press Releasewww.xplosivestocks.comXplosive Stocks PICKS CORNERWe always do our best to stay on top of stories and the latest action, and as we actively searched for our latest and newest picks we uncovered a rumor in the works. We just had to get to the bottom of it and we did. The rumor about NVSR.PK is true!

Biotech Stocks: Drug analysts still cautious about Hospira

BOSTON (MarketWatch) � Despite a recent bump in the stock, drug industry analysts are still largely cautious about buying Hospira Inc. shares as the specialty pharmaceuticals maker struggles to bring its manufacturing operations back into regulatory compliance.

Hospira�s HSP � woes began in 2010, when the U.S. Food and Drug Administration issued the company a warning letter about its quality-control practices, particularly those at its Rocky Mount, N.C. manufacturing plant. The facility reportedly contributed almost a quarter of the company�s revenue at the time.

/quotes/zigman/346012/quotes/nls/hsp HSP 34.09, +0.05, +0.15%

As a result, Hospira has been forced to temporarily shut down or limit production of certain products as it brings its operations back into compliance. Hospira�s problems have been further compounded by the recall of some of its drug-delivery pumps.

Investors first took the company�s regulatory issues in stride, and despite the warning letter, pushed the stock to a 52-week peak of $59.20 last April.

But the party came to an end in October, when a far weaker-than-expected earnings report spooked investors and tanked the stock. Hospira shares hit a 52-week low of $26.92 in early December, but managed to climb into the mid-$30s over the past month. And the stock got a needed boost on Tuesday, when a better-than-expected earnings report sent shares up nearly 10%. The stock closed at $37.92 on Thursday.

Most analysts, however, still remain guarded about the stock�s near-term prospects. As of Feb. 15, the average rating was hold, with a price target of $35.40, according to FactSet.

Leerink Swann analysts, for example, maintained their market perform, or hold, rating after Tuesday�s earnings report. They did, however, raise their valuation to $36 a share from $30, and noted the company appeared to be working hard to resolve its regulatory issues.

�In 2012 and 2013, Hospira will likely be a �show-me� story as management works to resolve ongoing quality control, manufacturing, and customer service-related issues,� wrote Leerink Swann analyst Rick Wise, in his note issued Tuesday.

�With the overhang of timing uncertainty likely to be in place for at least the next few quarters, we�re inclined to move to the sidelines until we gain greater clarity,� he continued.

�We�re also inclined to think Hospira shares could remain range-bound in the near term given what seems likely to be a protracted period of uncertainty that could stretch into mid-to-late 2012,� Wise added.

Collins Stewart analysts were more optimistic, raising their price target Tuesday to $43 from $35. The firm has a buy rating on the stock.

�We believe that Hospira�s earnings potential is still under-appreciated by the Street,� wrote Collins Stewart analyst Louise Chen in her note.

�We expect Hospira to update its long term financial guidance for 2012 to 2016 as it progresses through 2012. Once the company reaches an inflection point in supply, sales should improve,� said Chen, adding that Hospira�s product supply should �stabilize� by 2013.

Chen also said that if Hospira were able to resume marketing of its recalled drug pump Symbiq, noticeably improve production at its Rocky Mount plant, and launch several new products, the stock could go up to $60 a share within the next 12 months.

However, if the company faces further FDA action, drug supplies do not improve, its sedation drug Precedex ends up facing early generic competition, and few new drugs are launched, the stock could sink to $33 a share. One of Precedex�s key patents expires in July 2013.

RBC Capital was more pessimistic and maintained its sell rating.

�Given our fundamental thesis that getting manufacturing back to �normalized levels� will take longer than investors expect and that competition to key products, such as docetaxel and vancomycin, could significantly pressure the top line, we maintain our underperform rating on the stock,� wrote RBC analyst Shibani Malhotra, in his note on Tuesday.

Retirement Portfolio Fundamentals (Part 3)

As promised, part 3 of this "newbie" series (and anyone else that would like to review from square one) will be on writing covered calls on our portfolio to make some extra income.

Our "Initial Core Portfolio" consists of Exxon Mobil (XOM), Johnson and Johnson (JNJ), General Electric (GE), Annaly Capital (NLY), and AT&T (T).

Part 2 of our series was about allocation of available funds, and what stocks would be a great starting point for new dividend/growth investors heading towards retirement, or those just retired and seeking more income as well as a lower risk portfolio.

Let's take a look at our portfolio;

Stock	Shares	Value	Yield %
XOM	100	8,600	2.20%
JNJ	200	13,000	3.50%
GE	700	13,300	3.60%
NLY	200	3,400	13.60%
T	700	21,000	6.00%
TOTALS	X	59,300	4.75%

As you can see we have a specific number of shares purchased for each stock based on dividend yield, recent share prices (as of 1/30/2011) and percentage of our available funds. We do not want to be too heavy in any one stock, nor do we want to reach our intended total percentage in any stock all at one time.

We began our journey with $100,000 in available funds to invest and we currently have roughly $40,000 in cash reserves to deploy in future chapters. ( For the advanced strategy readers, we have determined that the market could be ready for a correction, so having cash on hand right now is VERY prudent)

Let's Sell Some Calls

First, let me give a brief overview of what selling (or writing) calls are; the share holder sells options (calls) to give someone the rights to the shares at a defined price, by a particular date. The buyer of the calls pays a premium to the shareholder, which is the added income derived from actually owning the stock and implementing the strategy.

Bottom line is that once you sell the calls at a strike price over the current share price, you get the premium from the sale immediately and you can do whatever you want with the money.

For our purposes, we will put the premiums received into our cash reserves to build that up for future stock purchases.

The next step will be to review each stocks "option chain" and select the ones we are most comfortable with.

We have selected the following calls to sell:

XOM: 3/16 expiration: $90.00 strike price: $30.00/premium received
1 contract sold equals 100 shares at $.30/share premium

JNJ: 3/16 expiration: $67.50 strike price: $20.00/premium received
2 contracts sold equals 200 shares at $.10/share premium

GE: 4/20 expiration: $21.00 strike price: $90.00/premium received
7 contracts sold equals 700 shares at $.13/share premium

NLY: Skip this cycle. The premiums are too small

T: 4/20 expiration: $32.00 strike price: $85.00/premium received
7 contracts sold equals 700 shares at $.12/share premium

By selling the calls as we listed we would immediately add $225.00 to our cash reserves which would now stand at $40,925 for use to deploy at some point. We can add shares of what we own, or add new stocks to our portfolio.

In Part 4 of this series we will explore our choices and decide what looks best.

What Happens Now?

Let's look at the downside first:

1) The stocks take a huge hit, and you cannot sell them because you have promised them to the "call" buyer; unless you buy the calls back, and take action on the stocks themselves. (Remember we still own the stock so nothing is actually lost)

2) The stocks sky rocket and you missed the boat because they were 'called' away by the owner of the calls you sold. Which can be mitigated by rolling over the calls to a further out date as you get closer to expiration date. (We made a profit anyway!)

Those are the two worst case scenarios that I can think of, and that I have personally faced as well.

Let's look at the upside:

1) The price of the stock stays under the price we agreed to sell it at, and does not drop that much. We keep the premium and do the strategy over again.

2) The stock prices rise and the shares are called (or taken) away. We sold the stocks at a higher price and made a profit, collected the dividend, collected the premium from the sold calls, and now we can use the cash to buy the shares back immediately or wait for an even better purchase price.

That's it. Nothing magical, just a simple strategy that gives us some extra profits simply because we own the stocks. As you can see, the upside far outweighs the downside risk and is a strategy that we use ourselves all of the time and we would urge everyone to see if the strategy is for them.

My Opinion

Now that our newcomers have a basic understanding of our option strategy, we can move ahead to expanding our core portfolio.

Part 4 will explore our choices and which ones will serve our purposes best. Reduced risk, solid companies, good dividend yields paid on a regular basis.

Stay tuned, it gets more interesting all the time!

Disclaimer: Please remember to do your own research prior to making any investment decisions. This article is not a recommendation to buy or sell any securities or stocks and is the opinion of the author.

Disclosure: I am long XOM, JNJ, GE, NLY, T.

Don’t Put Bill Gross Out to Pasture Yet

Worth over $2 billion, Pimco’s Bill Gross should be enjoying his retirement now (he’s 67 years old). But instead, it seems that managing the world’s largest bond fund — the Total Return Fund (MUTF:PTTRX) — is much more fun. Gross has been at its helm since 1971.

Unfortunately, last year was horrible for him. His fund returned only 4.2%, which was at the bottom third of its peers.

Gross made one of his worst calls — that is, that U.S. Treasuries would get whacked because of the Federal Reserve’s termination of the second phase of its quantitative easing program (QE2). But instead, he missed out on one of the year’s best investments (the return was nearly 10%).

While Gross was correct that the world economy would be shaky, he didn’t realize that U.S. debt would become a magnet for jittery investors. As a result, the Total Return Fund suffered $5 billion in redemptions. It was the first outflow since the late 1980s.

Now, Gross was certainly not the only one who blundered in 2011. Other top investors also got crushed, such as John Paulson. Keep in mind that Paulson’s Advantage Plus Fund was off by a grueling 47%.

But more important, Gross still has one of the best long-term track records in the bond business. Just look at these stats from Morningstar:

Time Frame	Average Annual Return
3 Years	8.44%
5 Years	7.44%
10 Years	6.33%
15 Years	6.77%

And the Total Return Fund is more than just the handiwork of Gross. He has built a sophisticated infrastructure and employs some of the best analysts and money managers.

So what is Gross�s strategy now? He’s actually getting aggressive with Treasuries, which is probably a good move. Gross has also gotten even more gloomy on the macro economy. While he once called the slow-growth scenario the “new normal,” it has now become the “paranormal”!

His thesis is that there’s still too much debt across the world — and it will need to be dealt with. If policymakers don’t do anything about it, then the markets will. And this will likely be a brutal process.

OK, perhaps some of this heavy analysis is just Gross being mad about his performance. But that seems unlikely for someone who has such a strong long-term track record. Like any top investor, he tries to find the right data and find the right trends.

Now, if Gross is correct in his assessment, it actually means bonds will be a good investment in 2012. But investors still need to be selective. As he notes: �You usually get what you pay for in this world and nothing comes for free.�

As a result, Gross believes it�s smart to hedge things — such as by focusing on quality. This is for both fixed income as well as stocks, including those that provide hefty dividends.

This is a trade that worked quite well last year. And if 2011′s volatility continues, it stands a good chance of working in 2012 as well.

Tom Taulli runs the InvestorPlace blog �IPOPlaybook,� a site dedicated to the hottest news and rumors about initial public offerings. He is also the author of �All About Short Selling� and �All About Commodities.� Follow him on Twitter at @ttaulli. As of this writing, he did not own a position in any of the aforementioned stocks.

IRS extends tax filing deadline to April 17

NEW YORK (CNNMoney) -- The IRS is giving taxpayers two extra days to get their taxes turned in this year.

While Tax Day typically falls on April 15, the IRS announced Wednesday that it is pushing back this year's filing deadline to Tuesday, April 17.

The extension was granted because April 15 falls on a Sunday this year, and Monday is Emancipation Day, a holiday in Washington D.C. that celebrates the freeing of slaves in the district. Last year, Tax Day was extended until April 18, also thanks to Emancipation Day.

The IRS will also begin accepting returns submitted online through the agency's e-filing system -- which the IRS says is the fastest, most accurate filing option for taxpayers -- on January 17.

Same-sex spouses lose big on taxes

If you are requesting an extension, you have until Oct. 15 to file your 2011 tax return, the agency said.

The IRS said it expects to receive more than 144 million individual tax returns this year, with the majority projected to be submitted by the new April 17 deadline.  

Apple: Hedge to Rising Interest Rates

Although rising interest rates are largely seen as negative for stocks, some companies may actually have a net-gain from an interest rate bump. Today’s low interest rate environment has led to some pretty attractive debt offerings (for the companies at least). When interest rates eventually start rising however, many companies will run into trouble looking for ways to finance their new debt loads. One company however will not only experience a financial gain in this environment, but will also be able to capitalize on their competitors problems by deploying their ample cash hoard.

Apple (AAPL) currently holds $23.46 billion in cash and short-term investments. Besides providing a rock solid balance sheet, Apple’s cash provides an edge to differentiate itself in a possibly tough environment.

For every 2 percentage points in rate hikes, Apple will experience almost $500 million added to their bottom line.

All that is needed is for the Fed to move rates up to 2%, hardly unquestionable when compared to historic levels. At 4%, nearly $1 billion is added to Apple's profits.

During the last 12 months Apple has posted a profit of $5.7 billion. With 4% interest rates, Apple would experience earnings growth of nearly 20%, and that’s not even adding in organic growth. The only question left is, when will the Fed move?

Disclosure: No Positions

Sprint: Credit Suisse, BTIG Size up Clearwire Potential

Shares of Sprint-Nextel (S) are down 5 cents, or 0.8%, at $5.68 after the company this morning said Japan‘s Softbank, owner of that country’s third-largest cellular operator, would purchase 70% of Sprint for $12.1 billion, $8 billion of which would be in cash to Sprint shareholders.

The Street is looking favorably upon the deal, as far as the sell-side community is concerned, although an open question is whether Clearwire, Sprint’s broadband wireless partner, 49% owned by Sprint, is going to become part of the deal. As of this morning, Sprint and Softbank executives said the deal makes no obligations around Clearwire and declined to speculate whether anything would be done about Clearwire as a consequence.

Clearwire shares are up 37 cents, or 16%, at $2.68, and rose as high as $2.96, clearly anticipating some benefit, if not now then down the road. Given the emphasis placed by both Sprint and Softbank on rolling out faster 4G wireless service, of the “long term evolution,” or LTE, variety, it would seem Clearwire’s network and spectrum might be important to the two. Sprint has already committed to paying Clearwire hundreds of millions of dollars for future LTE services, as noted in Clearwire’s most recent 10-K.

In a note to clients this morning before the official Sprint announcement, Credit Suisse‘s Jonathan Chaplin, who rates Sprint shares Outperform, and doesn’t formally cover Clearwire, writes that “the roll-up has begun” in wireless, predicting, “Softbank’s investment will spark further consolidation, likely starting with Sprint’s acquisition of Clearwire.”

Further, Softbank will then “go after other independent carriers in a bid to create a wireless company that will rival AT&T and Verizon in scale,” which is good for Sprint, but also good for wireless in general.

Chaplin lays out the shape of a Clearwire acquisition, as he sees it:

We believe Clearwire�s spectrum is a tremendously valuable strategic asset with an intrinsic value of at least $4.50 / share. The market has clearly taken a dimmer view of this spectrum. As such, we are not sure how the market will respond to Sprint consolidating Clearwire. In the analysis below, we assume Sprint acquires the Clearwire equity it doesn�t own in an all-stock transaction at a price of $4.50 / Clearwire share. We then assume that they call the $2.9BN in 12% 1st Lien debt that is due in 2015, resulting in pro forma equity value of $31.7BN and EV of $42.9BN. This assumes that the market gives Sprint $6.2BN in equity value credit for Clearwire. Clearwire would likely have an EBITDA loss of ~$629MM in 2012 (-158MM CS12 EBITDA � 471MM wholesale revenue) once you eliminate the revenue that Clearwire receives from Sprint; however, we think Sprint would be able to rationalize Clearwire�s costs relatively quickly, reducing the EBITDA losses in half to ~$314MM. Sprint would trade at 5.6x our pro forma 2014 EBITDA estimate, assuming Sprint gets full value for Clearwire at $4.50 a share.

In a research note this morning, BTIG‘s Walter Piecyk,also writing before this morning’s press release, maintains that Clearwire could be critical to a deal, not least because of the sharks circling Clearwire if Sprint doesn’t pick them up:

To restate, there is no confirmation that gaining control over Clearwire is a condition of SoftBank�s deal to buy Sprint but if it is, Sprint�s competitors AT&T, Verizon and Deutsche Telekom or perhaps even future potential partners Dish Networks (DISH) or DirecTV (DTV) might consider launching their own tender for Clearwire�s stock. Sprint�s 48% equity stake could be a significant hurdle in completing a competing transaction. �It has been�previously reported, but not confirmed, that Dish may had already started building a position in Clearwire�s debt. �DirecTV�had urged the FCC to require the sale�of Clearwire�s stock by cable operators as a condition for approval of Verizon�s purchase of SpectrumCo. �We believe that many in the communications are thinking about their 5 year game plan based on the�maturation of the wireless industry, the over the top risk to linear programmers �and the proliferation of smartphones which has accelerated the �move to mobile�.

Greek Bond Restructure Deal Debated

A plan to restructure Greek sovereign debt could see banks gain equal footing with the European Financial Stability Facility and sovereign creditors, although the measure is still being debated.

Reuters reported that that is the key issue being discussed in meetings around a debt swap. Though no decision was reached on Tuesday, talks are expected to continue in Paris on Thursday or Friday.

Charles Dallara, head of the Institute of International Finance, said in the report, "We've made progress, but there are a number of remaining unresolved issues that will require much further effort by all parties if we're to find common ground."

The plan under discussion could permit private sector creditors to rank "pari passu" with the claims of the EFSF and with sovereign creditors; coupons on the new bonds would be paid to banks and other investors at the same time as loan interest payments. Bankers familiar with the talks said that both sides are still bargaining over the coupon rate and "sweeteners" to close the agreement.

The bond swap, which is known as private sector involvement (PSI+), is a major element of Greece's 130 billion euro ($170 billion) bailout. The country is eager to secure an agreement by the end of January to ensure it receives essential budget relief prior to elections scheduled for Feb. 19.

The co-financing structure considered for the deal is supposed to improve the quality of new Greek bonds to be issued to banks, and bankers have said they found some common ground in the arrangement. One banker involved in the talks who was not identified said in the report, "Banks moved towards the sovereigns' proposal on the condition that the new bonds have about the same credit status as official sector loans."

Bank Stress Tests Reveal Citi, MetLife, SunTrust Failed

Federal Reserve number crunchers revealed late Tuesday that two big U.S. banks, Citigroup and SunTrust Banks, are among those that would still be quite strained in a dire test of their financial strength.

Shares of Citigroup (C), up 6.3% Tuesday, were down nearly 4% after hours. SunTrust Banks (STI) stock lost the day’s 3.2% gain after hours. The Fed also said insurer MetLife (MET), and auto and mortgage lender Ally Financial, didn’t pass muster. Shares of MetLife, which rallied 4.7% Tuesday, were off after hours by nearly 4%, or $1.60, to $37.86.

In a surprise announcement that followed the steep market rally, the Federal Reserve revealed that many other big American financial institutions are quite sound. So much so that some of them have the cash to boost dividends. The info was supposed to come late Thursday.

In a bold move that one might expect of CEO Jamie Dimon, JPMorgan Chase (JPM) was first out of the gate Tuesday afternoon with an announcement that it would raise its dividend by 5 cents to 30 cents, and would buy back stock. Shares of JPMorgan rose 7% Tuesday, and after hours shares sank nearly 1%, or about 39 cents, to $43.

The Federal Reserve’s lengthy report is here.

As we said in an earlier post, many of the stress-tested banks are expected to raise dividends, including Bank of America (BAC). But it is leaving its penny-per-quarter dividend where it is.

Some analysts are still forecasting a dividend increase for Citigroup, which said in this release late Tuesday that it

“will� submit a revised capital plan to the Federal Reserve later this year” and that the Fed “has no objection to our continuing the existing dividend levels on our preferred stock and our common stock” … and ” has no objection to Citi redeeming certain series of outstanding trust preferred securities, as Citi proposed in its Capital Plan.”

BAC was shown to have a 5.7% Tier 1 capital ratio, on the low side compared to the 6.3% aggregate of the 19 bank holding companies subject to the tests — though not as low as Ally’s 2.5% Tier 1 ratio. Regions Financial (RF) had a Tier 1 ratio of 5.7% and SunTrust came in at 5.5%. Morgan Stanley (MS) and MetLife each had a ratio of 5.4%, according to the Wall Street Journal story on the stress tests.

Most companies have issued press releases in response to the Fed test. Ally’s is here, and it says the Fed’s analysis

“dramatically overstates potential contingent mortgage risk, especially with respect to newer vintages of loans … [and] does not adequately contemplate contingent capital that already exists within Ally�s capital structure that could be available at the Federal Reserve�s discretion.”

Is KAR Auction Services Going to Burn You?

There's no foolproof way to know the future for KAR Auction Services (NYSE: KAR  ) or any other company. However, certain clues may help you see potential stumbles before they happen -- and before your stock craters as a result.

A cloudy crystal ball
In this series, we use accounts receivable and days sales outstanding to judge a company's current health and future prospects. It's an important step in separating the pretenders from the market's best stocks. Alone, AR -- the amount of money owed the company -- and DSO -- the number of days' worth of sales owed to the company -- don't tell you much. However, by considering the trends in AR and DSO, you can sometimes get a window onto the future.

Sometimes, problems with AR or DSO simply indicate a change in the business (like an acquisition), or lax collections. However, AR that grows more quickly than revenue, or ballooning DSO, can also suggest a desperate company that's trying to boost sales by giving its customers overly generous payment terms. Alternately, it can indicate that the company sprinted to book a load of sales at the end of the quarter, like used-car dealers on the 29th of the month. (Sometimes, companies do both.)

Why might an upstanding firm like KAR Auction Services do this? For the same reason any other company might: to make the numbers. Investors don't like revenue shortfalls, and employees don't like reporting them to their superiors.

Is KAR Auction Services sending any potential warning signs? Take a look at the chart below, which plots revenue growth against AR growth, and DSO:

Source: S&P Capital IQ. Data is current as of last fully reported fiscal quarter. FQ = fiscal quarter.

The standard way to calculate DSO uses average accounts receivable. I prefer to look at end-of-quarter receivables, but I've plotted both above.

Watching the trends
When that red line (AR growth) crosses above the green line (revenue growth), I know I need to consult the filings. Similarly, a spike in the blue bars indicates a trend worth worrying about. KAR Auction Services' latest average DSO stands at 240.6 days, and the end-of-quarter figure is 221.8 days. Differences in business models can generate variations in DSO, and business needs can require occasional fluctuations, but all things being equal, I like to see this figure stay steady. So, let's get back to our original question: Based on DSO and sales, does KAR Auction Services look like it might miss its numbers in the next quarter or two?

The numbers don't paint a clear picture. For the last fully reported fiscal quarter, KAR Auction Services' year-over-year revenue grew 8.3%, and its AR grew 13.3%. That looks OK. End-of-quarter DSO increased 4.7% over the prior-year quarter. It was down 3.1% versus the prior quarter. Still, I'm no fortuneteller, and these are just numbers. Investors putting their money on the line always need to dig into the filings for the root causes and draw their own conclusions.

What now?
I use this kind of analysis to figure out which investments I need to watch more closely as I hunt the market's best returns. However, some investors actively seek out companies on the wrong side of AR trends in order to sell them short, profiting when they eventually fall. Which way would you play this one? Let us know in the comments below, or keep up with the stocks mentioned in this article by tracking them in our free watchlist service, My Watchlist.

• Add KAR Auction Services to My Watchlist.

Acuity Brands Passes This Key Test

There's no foolproof way to know the future for Acuity Brands (NYSE: AYI  ) or any other company. However, certain clues may help you see potential stumbles before they happen -- and before your stock craters as a result.

A cloudy crystal ball
In this series, we use accounts receivable and days sales outstanding to judge a company's current health and future prospects. It's an important step in separating the pretenders from the market's best stocks. Alone, AR -- the amount of money owed the company -- and DSO -- the number of days' worth of sales owed to the company -- don't tell you much. However, by considering the trends in AR and DSO, you can sometimes get a window onto the future.

Sometimes, problems with AR or DSO simply indicate a change in the business (like an acquisition), or lax collections. However, AR that grows more quickly than revenue, or ballooning DSO, can also suggest a desperate company that's trying to boost sales by giving its customers overly generous payment terms. Alternately, it can indicate that the company sprinted to book a load of sales at the end of the quarter, like used-car dealers on the 29th of the month. (Sometimes, companies do both.)

Why might an upstanding firm like Acuity Brands do this? For the same reason any other company might: to make the numbers. Investors don't like revenue shortfalls, and employees don't like reporting them to their superiors.

Is Acuity Brands sending any potential warning signs? Take a look at the chart below, which plots revenue growth against AR growth, and DSO:

Source: S&P Capital IQ. Data is current as of last fully reported fiscal quarter. FQ = fiscal quarter.

The standard way to calculate DSO uses average accounts receivable. I prefer to look at end-of-quarter receivables, but I've plotted both above.

Watching the trends
When that red line (AR growth) crosses above the green line (revenue growth), I know I need to consult the filings. Similarly, a spike in the blue bars indicates a trend worth worrying about. Acuity Brands' latest average DSO stands at 50.4 days, and the end-of-quarter figure is 50.4 days. Differences in business models can generate variations in DSO, and business needs can require occasional fluctuations, but all things being equal, I like to see this figure stay steady. So, let's get back to our original question: Based on DSO and sales, does Acuity Brands look like it might miss it numbers in the next quarter or two?

I don't think so. AR and DSO look healthy. For the last fully reported fiscal quarter, Acuity Brands' year-over-year revenue grew 11.6%, and its AR grew 5.3%. That looks OK. End-of-quarter DSO decreased 5.7% from the prior-year quarter. It was up 3.5% versus the prior quarter. Still, I'm no fortuneteller, and these are just numbers. Investors putting their money on the line always need to dig into the filings for the root causes and draw their own conclusions.

What now?
I use this kind of analysis to figure out which investments I need to watch more closely as I hunt the market's best returns. However, some investors actively seek out companies on the wrong side of AR trends in order to sell them short, profiting when they eventually fall. Which way would you play this one? Let us know in the comments below, or keep up with the stocks mentioned in this article by tracking them in our free watchlist service, My Watchlist.

• Add Acuity Brands to My Watchlist.

Sam’s Club’s Recipe for Using Pinterest

Pinterest, the fastest-growing social media site, is the latest recipe-exchange hub on the Internet. Foodies and home cooks alike are using recipe “pins” to dish up dinner. Sam’s Club (NYSE:WMT) is a recent benefactor of this trend, said Supermarket News.

During a recent panel presentation at the American Bakers Association Convention, Shawn Baldwin,�Sam’s Club senior vice president of Fresh Freezer Cooler, shared that a recipe featured on its website that went viral on Pinterest. The simple appetizer — asparagus and a few cheeses wrapped in Pillsbury (NYSE:GIS) crescent rolls — was pinned by numerous people who use the popular social media platform.

�If you really want to make an impact, get a recipe on Pinterest that uses one of your products,� Baldwin said. �It�s amazing how quick you can do it. You would see a bump in your sales. It�s a spot everyone�s looking to for entertaining.�

The membership warehouse club isn’t the only company getting a boost from the online picture post-board site that encourages users to share anything and everything they love. Those looking for cooking advice on Pinterest can find hundreds of recipes from food manufacturers like Kraft (NYSE:KFT) and Hershey (NYSE:HSY).

Some companies, like Whole Foods Market (NASDAQ:WFM), have created their own place on Pinterest. The natural-foods supermarket chain manages 39 boards showcasing its myriad recipes, products and tips.

Things To Consider Before Seeking Crowdfunding For Your Small Business

“Crowdfunding” is the relatively new concept of pitching an idea in a large forum – typically over the Internet – in an effort to find large numbers of individual investors who are willing to contribute nominal sums for start-up capital rather than seeking venture capitalists for whole amounts. Once limited to the arts and charities, a new law is opening up crowdfunding to small businesses, but there are risks. Entrepreneurs will have to disclose financials to the investor pool regardless of their contributions as well as file precise paperwork with the Securities and Exchange Commission. Also, companies must remember that all of this additional effort may result in nothing, because it may not attract any interest. For more on this continue reading the following article from TheStreet.

Small companies will soon have a new option to obtain financing through crowdfunding, but there are some cautions to consider.

The so-called crowdfunding term essentially means pooling resources or money together from a group. Under the Jumpstart Our Business Startups Act, or JOBS Act, small companies will have the ability to raise up to $1 million in equity on an annual basis through crowdfunding, without having to go through the rigorous disclosure process by the Securities and Exchange Commission.

To be sure there are a host of unknown answers regarding crowdfunding, but as more companies take to social media to tell their story and gain a following, the strategy could become a major player in the alternative financing sector.

Right now, crowdfunding is a popular tool for charities, artists, theaters and other organizations that essentially want donations. Through crowdfunding followers can show support, contribute and get behind an idea, but it's not actually an investment.

"To put that platform in the hand of business owners and allow them to be creative and allow them to tap local friends and family is just incredible news," says Lendio CEO Brock Blake.

Two often-cited crowdfunding sites are Kickstarterand Indiegogo. But the new law should open the marketplace for many more crowdfunding sites to be launched. It will also open the door to potential risks.

Already early crowdfunding backers are launching a self-regulatory organization to essentially act as a gatekeeper to accredited crowdfunding sites.

The Crowdfunded Intermediary Regulatory Association seeks to provide "investor protection and market integrity through effective and efficient regulation of those within the crowdfunding industry," it said in a press release last week.

"This is a great opportunity for many businesses that are ready to 'take that step,' such as those companies that are geographically at a disadvantage or not in proximity to venture capital firms," says Karen Kerrigan, president and CEO of the Small Business & Entrepreneurship Council. However, "businesses might be reading about this and hearing about this and saying 'Oh wow this is a ticket to the funding I have been looking for,' but there is a reality check here on these crowdfunding platforms you're going to have very tough audiences, in terms of investors."

On a positive note, companies and their owners will likely learn "what they need to do in order to raise capital," Kerrigan says.

"You have to be ready to go on these platforms in terms of disclosing financials. You [also] have got to have your act together in business plan viability in the marketplace. There are a lot of things that you're going to have to disclose and share to these investors. You can't expect to just throw something out there and say ... fund me," Kerrigan says.

As part of the last-minute investor protections added to the JOBS Act in the Senate, companies using crowdfunding methods "must still file some basic information with the [SEC], including the names of directors, officers and holders of more than 20% of the company's shares, plus a description of the business and its financial condition," according to The New York Times.

Companies will also need to be aware of the applicable disclosure requirements, which will depend on how much money they are seeking.

For an issuer seeking to raise up to $100,000, they will have to provide tax returns and financial statements certified by the company's principal. For those seeking up to $500,000, they will have to file financial statements approved by an independent CPA. For issuers seeking to raise more than $500,000, they will need fully-audited financial statements, says Barry Sloane, chairman and CEO of Newtek Business Services (NEWT).

"The companies that are seeking to raise money, they better be sure that this information is accurate," Sloane says.

Companies will also have to consider how much control do they ultimately want to give up? Investor accountability will be of the utmost importance. At minimum, the process will be rigorous and time consuming.

"Entrepreneurs and small business owners will quickly find out if they are crowdfunding-ready when they enter these platforms," the SBE Council's Kerrigan says. "Having investors carries added responsibilities -- it's not just your business anymore."

A third issue to consider: Crowdfunding is a not a panacea to small-business financing. Just because you put your business on a crowdfunding site, doesn't mean that investors will want to back it. The business needs to be sound, experts say.

Another issue is the investors themselves. There is the now the potential for unsophisticated investors to get in on something they may think is an opportunity.

"If you get a bunch of people who don't really understand your business that could be a huge problem," Lendio's Blake says.

Earnings Preview: Celgene Corp.

Celgene Corp. (CELG) is expected to report Q4 earnings before the market open on Thursday, January 28, with a conference call scheduled for 9 am ET.

Guidance

The consensus estimate is 62c for EPS and $743.32M for revenue, according to First Call. On January 11, Celgene pre-announced its Q4 results with an EPS view of 62c. Positive drivers for the company include expanding usage and international growth of Revlimid and the company's healthy pipeline. Possible negative drivers for Celgene include an overestimation of Revlimid sales and the increasingly competitive blood cancer market.

Analyst Views

On January 13, Celgene's target was raised to $68 from $60 at RBC Capital, reflecting what the firm sees as new positive data on Revlimid and bullish 2010 revenue guidance, as well as better than expected Q4 results. The firm maintains an Outperform rating on the stock.

6 Stocks to Sell in December

Sell Into the Santa Rally

U.S. stocks moved up late last month on expectations of a solid European plan that would provide for both stability and growth. But the blast-off could fizzle out since there is considerable political and technical resistance to overcome. The U.S. economy is making slow progress, and recent unemployment numbers are misleading because so many workers have fallen from the workforce.

As for the major stock indices, all show that stocks are entering an area of heavy resistance. Will a Santa Rally occur? Perhaps, but we may have already seen it since stocks have rallied more than 9% since Nov. 25. Sellers should use the rally as an opportunity to raise cash and dispose of non-performers.

Here is our list of stocks to sell in December:

    Stock to Sell #1 – Chemed Corp. (CHE)

Chemed Corp. (NYSE:CHE) is a diversified health care facilities company that operates through two subsidiaries, VITAS Healthcare and Roto-Rooter Group. Although it beat Q3 estimates by 9.09%, the stock has not been able to break from its long-term bear market. And last week, two law firms announced that an investigation into alleged Medicare and Medicaid fraud amounting to millions of dollars was filed against the company.

Technically the stock broke down from a consolidation at $52, and a rebound failed to close above its 50-day moving average — a negative sign. Note that the stochastic�s fast line (red) is turning lower — another negative. Sell CHE at market.

Chart Key

    Stock to Sell #2 – Hecla Mining Co. (HL)

Hecla Mining Co. (NYSE:HL) engages in the discovery, acquisition, development, production and marketing of lead, zinc, silver and gold. Despite higher prices in most of its products, the company�s earnings have been inconsistent and operations have been recently marred by the fatal mine accident inIdaho in April.

Hecla reported Q3 earnings of 11 cents, missing the analysts� consensus by over 15%. The stock is in a pronounced bear market with resistance at $6.50. Sell HL at market.

Chart Key

    Stock to Sell #3 – Medtronic (MDT)

Medtronic (NYSE:MDT), a leading maker of pacemakers, defibrillators and other medical devices, is under pressure because of a loss of market share in theUnited States. Gross margins are expected to narrow, and analysts have cut their annual target to $39. Last week, Wells Fargo analysts said Medicare audits for heart and orthopedic procedures are �onerous for hospitals and will likely reduce procedure volume.� This could have a direct impact on companies like Medtronic.

Technically the stock broke from an ascending triangle but reversed back into it on very heavy volume causing the stochastic to flash a sell signal. Even if the stock stabilizes, the 12-month future is bleak because of the heavy overhead of potential sellers starting at $37. Sell MDT at market.

Chart Key

    Stock to Sell #4 – Patterson Companies (PDCO)

Patterson Companies (NASDAQ:PDCO), distributor of dental supplies inNorth America, is expected to have a decline in gross margins in FY 2012 following tepid Q2 results. And last week, a Barclays Capital analyst noted that its �near-total exposure to theU.S. [is] a detriment, withU.S. growth under some pricing pressure.�

The stock has been struggling since falling through its 200-day moving average in July. A rally in October failed to hold above the 200-day, and a rally last week ended with a sell signal from our internal Collins-Bollinger Reversal (CBR) indicator.

The 12-month consensus price target for PDCO is $31. Sell PDCO at market.

Chart Key

    Stock to Sell #5 – Sasol Ltd. (SSL)

Sasol Ltd. (NYSE:SSL), a chemical and integrated energy company, mines coal in South Africa and natural gas in other African nations and Canada. The company also has assets inIran, and there is a possible risk that sanctions may be imposed on the company by theUnited States and the U.N.

Earnings have improved, but the stock is in a pronounced bear market with sellers on balance for over six months. Technically it is approaching a huge zone of potential overhead sellers. It is unlikely in the foreseeable future that SSL will break above its 200-day moving average at $50 and move significantly higher. Sell SSL at market.

Chart Key

Stock to Sell #6 – Teradyne (TER)

The semiconductor group has been a leader this year, but Teradyne (NYSE:TER) has not participated and should be sold. One reason for its failure is that in September earnings were adjusted lower to $1.38 this year versus $1.73 last year. And on Oct. 31, Teradyne�s revenues disappointed analysts, and S&P dropped their 2011 estimate to $1.32 and predicts a decline to $1.26 in 2012.

Technically the stock reversed from its 200-day moving average and has made a series of lows. A failure to hold at the 50-day moving average would signal a test of the lows at $11. Sell TER at market.

Chart Key

Learn How to Get rid of Typical Surface area Difficulties Coming from Timber Home furniture

By : Teak1232607/Teak123

Cleansing the complete in household furniture could include not only clearing off occasionally which has a moist material or perhaps household furniture enhance. International issue could become caught on the floor and also demand a more complex cleaning procedure. Here are several widespread cases and the ways to cope with each and every.

Peel off stickers and also Mp3

Many retailers and also transferring businesses set labeling 3d stickers along with costs as well as other information about household furniture teak furniture indonesia. When these 3d stickers are not taken out inside a month or two they’re able to turn out to be consequently caught on the floor that you are unable to peel these away. Because the glues which are used on these 3d stickers change, it’s not possible to recognize one synthetic cleaning agent which will dissolve every one. On many occasions the actual synthetic cleaning agent that actually works best, in fact, in addition melts the final.

Normally, the actual best approach to take away these 3d stickers would be to ease the actual cardstock along with normal water (while you do today to take away cardstock labels coming from containers), then peel from the lime the actual cardstock and only chafe the actual epoxy together with your hand or perhaps ease it which has a petroleum-distillate synthetic cleaning agent and then caress rid of it teak furniture indonesia.

Petroleum-distillate solvents consist of vitamin tones (fresh paint leaner), the lowest, naphtha, xylene (xylol) and also toluene (toluol), the best synthetic cleaning agent. Each one is offered at fresh paint stores and also home centres, as is turpentine, any pine-sap distillate, which has a synthetic cleaning agent strength much like naphtha.

It’s unlikely that any of those solvents leads to problems for any kind of complete besides become and also normal water base unless they continue in get in touch with for the a lot of time. Each will take away become; and also xylene and also toluene will certainly injury any water-based complete.

Hiding and also Whisky mp3 tend to be more challenging to take away as you are unable to use normal water to separate the actual mp3 from your epoxy. You will have to perform any synthetic cleaning agent beneath the mp3. Toluene and also xylene would be better (besides in water-based finishes) for their strength. Various other solvents including booze and also lacquer leaner might injury the final teak furniture indonesia.

In extreme cases, you might have to scrape or perhaps abrade off of the mp3 and then restore the injury on the complete. At times you will find there’s color distinction inside wooden or perhaps complete beneath the sticker or perhaps mp3 because this area has been shielded coming from lighting.

Candlestick Wax

You can take away candlestick become coming from a complete a little at any given time simply by rubbing which has a petroleum-distillate wet material. Yet it’s considerably quicker to work with glaciers for you to decide upon the actual become and then select rid of it the surface.

Maintain an ice cube from the become regarding 5 or perhaps 10 seconds for you to deep freeze it. After that select the become off of the floor together with your finger nail and take away any kind of that continues to be which has a petroleum-distillate synthetic cleaning agent.

Without having any kind of glaciers useful, you’ll be able to lower or perhaps remove the majority of the become which has a chisel, blade or perhaps plastic-type bank card. After that remove the sleep which has a oil distillate.

Crayon Marks

Because crayons are usually become, you need to be able to take away crayon represents simply by clearing off along with any kind of petroleum-distillate synthetic cleaning agent, turpentine as well as household furniture enhance. But if the complete can be so slender how the crayon has gotten into the wooden, maybe you have issues getting rid of each of the color. Attempt washing the floor several times while using oil distillate. It might help to scrub the actual affected region softly which has a brush.

Fresh paint Spatter

When you rotate latex fresh paint onto wall space and also roofs, the actual roller kicks away tiny minute droplets associated with fresh paint in which territory you and also any devices in the room. Should you not include your household furniture properly, you will probably find these minute droplets caught on the complete.

For a few days you could be able to remove the minute droplets simply by rubbing which has a material wet along with normal water, or perhaps soapy water. But when the actual minute droplets have got tough, you will need to caress them with any synthetic cleaning agent.

Your synthetic cleaning agent to work with can be toluene or perhaps xylene, the productive synthetic cleaning agent throughout industrial goods including Mistake Away from and also Oops!. Take care utilizing one of these solvents in water-based complete or perhaps latex fresh paint.

In contrast to latex fresh paint, oil fresh paint cannot be taken out effortlessly coming from an additional fresh paint or perhaps complete without in addition damaging it. Only a very strong synthetic cleaning agent including lacquer leaner or perhaps fresh paint pole dancer will certainly ease oil fresh paint, which solvents will certainly dissolve or perhaps ease every other fresh paint or perhaps complete around the piece, too. To take out oil fresh paint while using the very least problems for the main fresh paint or perhaps complete, you typically need to scrape or perhaps abrade the actual fresh paint off of the floor.

Felt-tip Dog pen Marks

Your binder found in felt-tip pencils and also Miraculous Indicators is just like shellac because it is almost always disolveable throughout booze, and so the evident cleaner can be booze. Naturally, you won’t have the ability to stay away from damaging any shellac floor, and you may should be mindful in lacquer and also water-based complete.

Mildew and mold

Mold and mildew are usually bacteria in which blossom throughout moist problems widespread throughout cellars. It doesn’t carry out significantly good to eliminate the actual mold or mildew from your floor unless you get rid of the spores. To achieve this, combine equal areas of family bleach and also normal water, and also clean the surface employing a natural cotton sponge or cloth. Your bleach will not likely injury any kind of complete, but the normal water will certainly whether it will get beneath the complete and also into the wooden. Consequently will not bathe the actual material.

To aid in the actual cleaning you can include any pH-neutral cleaning soap including dishwashing liquefied. After that clean the surface which has a clean up, moist material to eliminate any kind of remains that could be remaining from your bleach or perhaps cleaning soap. Meticulously dry off the surface which has a dry material. To help keep the actual mold spores coming from returning, squeeze household furniture throughout less wet problems.

Old and wrinkly Surface finishes

A filthy, wrinkly and frequently sweaty complete in easy chair hands and also backside, ends associated with dining tables, and also close to knobs and also pulls is truly the consequence of the final being previously divided simply by duplicated contact with gentle chemicals or perhaps alkalis. The commonest reason can be citrus system oil or perhaps sweating coming from customers’ palms, hands and also backside. Duplicated washings with the alkali cleaning soap could also cause this concern.

You can try washing the complete which has a gentle soap including dishwashing liquefied. If this doesn’t right the situation, you can try rubbing along with metallic wool for you to abrade off of the surface of the complete and also uncover good complete below. Usually complete can be damaged right through, nonetheless, so that it must be taken out and also changed to fix the situation.

The greatest Repair

Using the possible exclusion in the wrinkly complete, all of these difficulties may be corrected simply by abrading — in essence, rubbing out the complete, or at best part of it. Nevertheless this may cause shine distinctions, consequently try out the ways I propose previously mentioned first.

Copyright �� 2009 F+W Press Inc. Just about all Privileges Set-aside.

Incoming search terms for the article:

• how to get rid of petroluem distillate

China ETFs and the Regulatory Hammer

China has become a major area of focus as we embark upon the final months of 2011. With macroeconomic concerns weighing heavily across the globe, fears of a "hard landing" for this global economic growth engine are once again making the rounds.

Slowdown fears will likely present a challenge for ETFs designed to target the Chinese equity markets. For some funds, however, this may not be the only hurdle standing in the way.

See if (FXI) is in our portfolio

In addition to hard landing fears, investors learned late last week that the U.S. Department of Justice had opened up an investigation into accounting irregularities found at Chinese companies listed on U.S. stock exchanges. This is not the first time that U.S.-listed Chinese firms have faced scrutiny from regulators. In 2010 an investigation led by the Securities and Exchange Commission looked into Chinese reverse-mergers. Much is still unknown as to where the current probe will lead and it will be interesting to watch how the case progresses. A Reuters report suggests that "criminal charges may be brought in addition to civil proceedings." From an investment perspective, news of the investigation has weighed heavily on a handful of firms. During the final week of September, Chinese companies trading on U.S. exchanges like Baidu(BIDU) and Sohu.com(SOHU) fell 13% and 18% respectively. Despite these regulatory hurdles, for ETF investors, China is not entirely off limits. Gaining exposure safe from the ongoing investigation, however, will require a keen eye. The U.S. ETF universe boasts a wide collection of funds designed to provide investors with exposure to the Chinese companies. Not all are created equally, however. Rather, although they are both headlined by primarily large-cap companies, given their respective indexing strategies, a fund like the iShares FTSE China 25 Index Fund(FXI) will likely be affected differently than the PowerShares Golden Dragon Halter USX China Portfolio(PGJ). Of these two funds, FXI is the best suited to handle the current scenario. The fund takes aim at the Chinese marketplace, targeting companies like China Mobile(CHL), China Construction Bank, and CNOOC(CEO) using securities that trade on the Hong Kong Stock Exchange.

While FXI's dedication to Hong Kong-listed securities will protect it from being directly impacted by the regulatory probe, PGJ is not as lucky. According to its Website, the fund's index is, "comprised of the U.S.-listed securities of companies that derive a majority of their revenue from the People's Republic of China." While this strategy was initially utilized in order to inject the fund with transparency, it now appears to make the PGJ vulnerable to any resulting repercussions with regulators breathing down the necks of these companies.

Over the past week, the impact of the probe has been felt. PGJ has managed to underperform FXI by a noticeable margin. It will be interesting to see if these two funds continue to diverge in the weeks ahead.

Given the looming regulatory hurdles facing U.S.-listed Chinese companies, I prefer FXI over PGJ when it comes to gaining broad exposure to China's equity markets. However, any China-focused ETF should be approached with caution. Doubts swirling around this emerging nation will likely make it a risky bet in the near term. Exposure to China and other developing countries should be kept small and focused. Readers Also Like: >>Kass: 10 Questions for the Bulls>>Cramer: This Isn't 2008, and We're Not Europe

>To order reprints of this article, click here: Reprints

To Buy Tax Liens Or Not to Buy Tax Liens – That is the Question

Ok, so Shakespeare has no place in tax lien investing. Do you?

If you’re considering making the move from mortgage foreclosure investing to tax lien investing, or if you’re a new investor just wondering how you can make money from tax foreclosure property, you’ll need to answer a few questions to determine if it’s right for you to buy tax liens.

1. Do you have a lot of cash to invest? If the answer is yes, then tax lien investing may be a nice way for you to make a killer interest rate on your investment– but you’ll need to come up with all the cash up front for your winning bid at tax sale. If the answer for you is no, don’t worry; there are other ways for you to invest in tax sale property.

2. Are you a risk taker by nature? Ostensibly, you’re looking to invest in tax liens for the purpose of making a great interest rate on your investment, not with the objective of owning the property. You’re banking on the former owners paying off their liens, which they usually do. If you’re not a risk taker, you may not want to buy tax liens. When the owners don’t pay off, you’re stuck with a property that may have some real problems.

3. Are you interested in owning tax foreclosure property (as opposed to just a lien on it)? If so, then you’ll want to explore other avenues that are more appropriate for that endeavor. As stated in #2, usually tax lien investors are looking for a great interest rate, not a property to own. You’ll rarely end up with a property if you buy tax liens– and if you do, it will be one you won’t have been able to inspect beforehand. There are better ways of getting tax foreclosure property than tax lien investing.

4. Are you a patient person? Tax lien investing can be a very long-term proposition. In some states, owners have five years to come forward and pay off their liens. That’s a long time to wait, for just about anyone.

If your answers to the above four questions were less than favorable, you may want to explore a different method of acquiring tax property. It’s really quite simple: purchase tax foreclosure property directly from the delinquent owners! If you catch them at the right time in the foreclosure process, you are virtually guaranteed to be able to strike up a deal with them to purchase their property, since if they don’t sell at some point, they will lose everything to the government.

Frequently, these tax delinquent owners have already resigned themselves walking away from their tax burden. This is a unique subset of sellers that are ready to practically (and sometimes, actually) give away their deeds, just to see them go to someone other than the government. If you strike while the iron is hot, you’ll be amazed at the deals you can get from tax delinquent owners.

This little-known method of investing in tax foreclosure properties is known as “deed grabbing” amongst the small number of real estate investors that practice it. It’s not difficult to do, and best of all, there’s very little competition in this field. Due to the current economic climate, there are more tax foreclosures than ever before, and this will likely continue for some time.

Click through to http://deed-grabber.com.

Top Stocks For 2012-1-15-19

Enzo Biochem Inc. (ENZ)

The scientific knowledge which is applied to practical ways in industry for the benefit of human beings is called technology. The biological sciences have recently passed through more advanced technologies in different spheres of life and activities. One of those advanced technologies is biotechnology. The applications of advances made in the techniques and instrumentations in research in biological sciences are called Bio- technology. Some define bio- technology as the manipulation of organisms to make products that benefit human beings.

Enzo Biochem, Inc., is a growth-oriented integrated life sciences and biotechnology company focused on harnessing biological process to develop research tools, diagnostics and therapeutics, and serves as a provider of test services, including exotic tests, to the medical community. Since ENZ was founded in 1976, their strategic focus has been on the development of enabling technologies in the life sciences field.

Enzo Biochem Inc. recently announced that it has added four highly experienced executives at its Enzo Life Sciences subsidiary to focus on rapidly evolving new pharmaceutical and clinical applications.

The officers, all filling newly created positions, are Bruce Taillon, PhD, as head of global technology business development, John D’Errico, PhD, to lead the commercial merchandising operations, Kara Cannon, as head of global marketing and Paul Munger, PhD, to lead Global Manufacturing.

Over the past two years, Enzo has been engaged in enhancing the Life Sciences subsidiary’s operating performance through added capabilities, greater integration and a more focused product mix. These efforts are all aimed at significantly expanding Enzo’s presence and marketing beyond the traditional academic and research laboratory core to greater penetrate the pharmaceutical and clinical customer base with new and cutting edge platform technologies.

For more information about Enzo Biochem Inc. visit its website: http://www.enzo.com

Oritani Financial Corp. (Nasdaq:ORIT) announced that its Board of Directors has authorized the repurchase of up to 10% of its outstanding shares of common stock, or 5,062,056 shares.

Oritani Financial Corp. is the holding company for Oritani Bank, a New Jersey state chartered bank offering a full range of retail and commercial loan and deposit products.

Cleantech Transit, Inc. (CLNO)

People are looking for a cheaper alternative to fossil fuels in order to reduce their dependency on oil and its environmental and economic costs. Biofuels are considered in this regard as the next energy source.
Some advantages of Biofuel are;

1.Biofuel is the green friendly fuel which can help you to reduce the rising levels of green house gases caused by oil.
2.Biofuels can be made from different sources like plants, algae and fungi. All these sources are available in abundance therefore biofuel can be produced on a massive scale.
3.Biofuels can help to reduce global warming and it can also contribute in the global economy. Biofuels are much safer to handle as compared to gasoline. The health effects are also much less as compared to fossil fuels.

Cleantech Transit Inc. was founded to capitalize on technology advances and manufacturing opportunities in the growing clean energy public transportation sector. The Company has expanded its focus to invest directly in specific green projects. Recognizing the many economic and operational advances of converting wood waste into renewable sources of energy, Cleantech has selected to invest in Phoenix Energy (www.phoenixenergy.net). This project could benefit the Company’s manufacturing clients worldwide.

Cleantech Transit, Inc. (CLNO) is pleased to announce it has met its funding requirement to secure the Company’s ability to earn in 25% of the 500KW Merced Project.

The Company is in the final stages of closing its initial interest in the Merced Project and is currently working on completing the necessary documentation and expects closing the transaction soon. As previously announced Cleantech has the option to earn up to 40% of the Merced Project and the Company plans to continue to work towards increasing its interest in the Merced Project as they move ahead.

For more information about Cleantech Transit, Inc. visit its website www.cleantechtransitinc.com

China Fire & Security Group, Inc. (Nasdaq:CFSG) announced that, at the special meeting of shareholders, the Company’s shareholders voted in favor of the proposal to adopt the previously announced Agreement and Plan of Merger, dated May 20, 2011 (the “Merger Agreement”), by and among the Company, Amber Parent Limited, an exempted company incorporated in the Cayman Islands (”Parent”), and Amber Mergerco, Inc., a Florida corporation and a wholly-owned subsidiary of Parent (”Merger Sub”), providing for the merger of Merger Sub with and into the Company (the “Merger”), with the Company surviving the merger as a wholly-owned subsidiary of Parent.

China Fire & Security Group, Inc., through its subsidiaries, engages in the design, development, manufacture, and sale of various fire safety products for the industrial and special purpose infrastructure industries, as well as the design and installation of industrial fire safety systems in the People’s Republic of China and India.

Frontiers of Investing Webinar Series, Part II: Finding Alpha in 2011

 

On Wednesday, Feb. 2, AdvisorOne’s editors will host the second in a four-part free Webinar series on where, and how, advisors should be investing now to enhance return while managing risk. Programmed by the editors of Investment Advisor and Research magazines and AdvisorOne.com, the second Webinar in the series—each of which are pre-approved for one hour of continuing education (CE) credit from the CFP Board of Standards—will focus on where to find alpha in 2011’s markets.

Featuring Ben Warwick (left) of Aspen Partners and QES Investments, and the long-time writer of AdvisorOne’s Searching for Alpha newsletter, the second Webinar in the series will be held on Wednesday, Feb. 2 from 3:00-4:00 PM EST. Moderated by AdvisorOne Editor Jamie Green, Warwick will follow up on his January cover story for Investment Advisor on where to find returns in 2011 with an exploration of what metrics to consider when investing in the post-credit crunch New World. He will also suggest specific investments that are likely to deliver alpha in 2011.

In addition to the monthly Searching for Alpha newsletter, Warwick is also a regular blogger on AdvisorOne.com. His postings within the past week include Waiting for a Buying Opportunity in the Muni Market and A Portfolio Position Upgrade: FSC.

To register for the Feb. 2 event and for more information, please visit our registration page at AdvisorOne.com.

You may access here the archived first Webinar in the series—Using Volatility as an Asset Class—that was held Jan. 26, featuring Prima Capital CIO Cliff Stanton and volatility investor Bill Luby discussing Prima’s new research on volatility as a non-correlative asset class.

The third Webinar in the series will be held Wednesday, Feb. 9, also from 3:00 to 4:00 EST, focusing on the latest trends in ETFs--the vehicles themselves and their use  in client portfolios. This free Webinar, good for one hour of continuing education credit from the CFP Board, features ETF experts Thomas Graves and Vaughan Scully of Standard & Poor's and Ron DeLegge of ETFGuide.com.

Crude Futures Jump to $81.38 on U.S, China, India Manufacturing

Crude oil futures are climbing this morning on robust manufacturing data from the U.S., India, and China, with the contracts for delivery in February up $2.02, at $81.38 per barrel.

The Institute for Supply Chain Management (ISM) reports this morning that December U.S manufacturing activity rose for the fifth consecutive month, with the PMI, formerly the purchasing manager’s index, rising to 55.9% from November’s 53.6%, and above the 54.8% analysts were expecting. It was the highest level since April of 2006, the ISM said.

Marketwatch’s Chris Oliver notes two studies out this weekend, one from HSBC and one from China’s official Federation of Logistics and Purchasing, show China’s economy in December rose at its fastest pace since the second quarter of 2004. Oliver quotes an HSBC analyst who cites China’s second-round of stimulus funds as being the cause for the jump.

The Financial Times’s Kevin Brown notes the data also show prices of Chinese goods rising the fastest since July of 2008 because of rising raw materials prices. At the same time, official data for India just released show the country’s purchasing manager’s index rose in December to its highest level since May.

10 Things to Consider When Looking at Investments

After such a tumultuous year for investors it can be helpful to come back to some basic principles.

Here are five do’s along with five don’ts that we believe are good advice at any time, but especially in the aftermath of the global financial crisis.

Let’s start with the Do’s.

1. Be cautious. Having a conservative bias makes mathematical sense. If you lose 50 percent of your capital you need to earn 100% to get back to square one. This most basic mathematical fact is justification enough for a cautious bias when investing. It is better to miss out on some upside in order to protect your capital against downside.

2. Have realistic return expectations. Over the long haul fixed income investments like deposits and bonds will return between 4% and 7%, while property and shares have averaged returns of 7% to 10% a year.

A balanced portfolio, depending on the mix of assets, might therefore be expected to deliver a return of 6% to 8% a year. After tax and inflation are deducted this return may translate into a real net return of 2% to 3% a year. Not only do returns tend to be lower than people expect, they also often end up being more volatile. Expect returns to be up and down, sometimes dramatically so. Market volatility is an unavoidable part of investing.

3. Diversify. The best way to avoid financial disaster is diversification. A wide spread of high quality investments across sectors, markets and assets is the most effective way of reducing risk. Diversify across time as well. Investing in instalments is a great way of protecting against mis-timing and buying just before a market fall.

4. Invest for income. Owning investments that pay you to own them makes sense. Bond, property and shares all produce income. Capital growth is important, but it usually follows income growth. Buy for income and growth should follow.

5. Take a disciplined approach. Setting some rules around how you will invest your portfolio, such as how much you will invest in riskier options like shares and property and how many you will look to own, is worth the effort. It gives you a roadmap on how to invest your portfolio.

And five don’ts.

1. Don’t ignore inflation. Even if inflation stays at around 2%, it still takes 10% off the spending power of your capital every 5 years. Inflation is every investor’s enemy number one. Over the long term real assets such as property and shares have proven the best protection against inflation.

2. Don’t rely on market forecasts. Humans cannot predict markets with any consistent degree of accuracy. Don’t put too much faith in them. We should spend more time ensuring our portfolios are well diversified than on trying to predict market movements.

3. Don’t buy and hold. Invest for the long term and with the intention of holding your investments for many years but, if things change, be prepared to review and alter your portfolio accordingly.

4. Don’t fall for options that appear too good to be true. At present, the return on a New Zealand government bond, the safest investment of them all, is around 5%. If you want no risk, this is the return you have to accept. Achieving any return above this level will involve taking a degree of risk. And the higher the return you aim for, the more risk you have to take. No exceptions.

5. Don’t invest in anything you don’t understand. If you find yourself struggling to understand an investment it can pay to give it a wide berth. Or at least, invest only a small amount until you learn more and get more comfortable with it.

Craigs Investment Partners Limited (formerly ABN Amro Craigs.) is an NZX Firm that was established in 1984. It is one of New Zealand’s largest and most established investment advisory firms.

Craigs Investment Partners is 100% owned by certain staff and close business associates. Services offered include: Sharebroking, Portfolio Strategy and Management, Retirement Planning and Superannuation, Investment Advisory, Custodial Services, Foreign Exchange, Asset Allocation, Cash Management, Portfolio Lending, Research and such other services as introduced from time to time by Craigs. http://www.craigsip.com/

Builders Drop Even as Sentiment Hits 6-Year High

Homebuilder sentiment hit a new six-year high in October, according to the National Association of Home Builders/Wells Fargo housing market index. The index rose by 1 point to 41, but was slightly below economists’ expectations for a reading of 42.

Builders slipped immediately after the news, even as the overall market continued its strong rise; the Dow was recently up more than 100 points.

Lennar (LEN) fell 0.7%; KB Home (KBH) was trading flat after rising earlier in the morning; DR Horton (DHI) was down 0.8%; and Toll Brothers (TOL) was off 0.7%.

The NAHB chairman expressed some concern about tight credit conditions, a constant recent complaint by builders and their representatives.

�Many builders are reporting increases in the number of serious buyers visiting their sales offices, and the overall confidence measure is much higher than it was at this time last year,� noted NAHB Chairman Barry Rutenberg, a home builder from Gainesville, Fla. �The concern is that, even though demand for new homes is rising, overly tight credit conditions are still constraining new building and new purchases at a time when that kind of economic activity and the job growth it generates are greatly needed.�

Why Is Buffett Buying Shares of Iron Mountain, Fiserv?

Warren Buffett used to say that he never invested in technology companies because he doesn’t understand them. That doesn’t mean that his holding company, Berskhire Hathaway (BRK.A), doesn’t invest in information technology companies. Recently, Buffett’s company has had an appetite for information services companies. These investments were probably made by Charlie Munger or Lou Simpson.

He now owns 8 million shares of Iron Mountain Inc. (IRM) which provides information management services to IT companies. The company offers document management, data protection, destruction services, and records management services. Iron Mountain is one of the companies on the cutting edge of cloud computing. Buffett also owns 4.4 million shares of Fiserv (FISV). Fiserv offers information management services and electronic payment processing solutions to its clients.

So, why is Buffett buying shares of both of these companies?

It’s simple really. Both companies are classic Buffett investments. Fiserv and Iron Mountain both generate large amounts of free cash flow. Fiserv generates $970 million dollars in free cash flow and Iron Mountain has $630 million dollars in free cash. Both companies have similar balance sheets with $300 million in cash and $3 billion dollars in long term debt.

Both companies had straight years of sequential revenue growth until last year. The economic crash of 2009 hit the service revenues for both companies as clients ratcheted down capital spending. Iron Mountain had nine straight years of revenue growth before last year. Fiserv had a streak of consecutive earnings growth until the company had its first revenue drop in 2009.

Fiserv trades at 12.5 times earnings which is right in line with the historical growth rate. Iron Mountain trades at 17.5 times earnings which is slightly higher than the 13.6% historical growth rate. Neither company could be classified as a steal or as expensive. Both companies appear reasonably valued. They trade at PEG ratios close to 1.

E-commerce is the present and future of business. The market is still in its infancy and has great growth potential. E-commerce sales are currently 7% of all United States retail sales and are expected to hit $170 billion dollars this year. Berkshire Hathaway’s investments in both firms are clearly designed to benefit from this emerging trend.