Will Macy’s Continue to Make New All-Time Highs?

With shares of Macy's (NYSE:M) trading at around $48.00, is M an OUTPERFORM, WAIT AND SEE or STAY AWAY? Let's analyze the stock with the relevant sections of our CHEAT SHEET investing framework:

C = Catalyst for the Stock's Movement

For those who missed the latest earnings report, EPS came in at 55 cents per diluted share on $6.39 billion in revenue. Earnings increased 28 percent year-over-year, which was impressive. Revenue was in line with expectations. And comp sales growth of 3.8 percent, which was slightly below expectations. All that said, the whole expectations game is a little tiresome. It has become a game of cat and mouse. Looking strictly at the numbers, it was a good quarter on a year-over-year basis. Macy's full-year guidance was reiterated at $3.90-$3.95.

Macy's has continued to increase market share, which has had a lot to do with the failures of J.C. Penney Company (NYSE:JCP). The only department store giving Macy's competition is Nordstrom Inc. (NYSE:JWN). Kohl's Corp. (NYSE:KSS) has been doing okay — it hasn’t been a serious threat.

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While J.C. Penney's failures have been a big reason for Macy's gains, online growth has also helped. When many traditional retailers opted to scoff at online retailing, Macy's embraced it. According to Alexa.com, Macy's ranks #625 globally and #135 in the United States. In other words, only 134 sites in the United States are visited more than Macys.com. On the other hand, online stats for the past three months haven't been great, and this could offer a hint at future results. Over the past three months, pageviews-per-user has declined 9.63 percent, time-on-site has declined 7 percent, and the bounce rate (one page per view) has increased 9 percent.

Other headwinds for Macy's include a slowdown from budget-conscious consumers, especially in women's clothing and apparel aimed at teens and young adults. However, handbags and menswear have performed well. It should be noted that there has also been a slowdown from higher-end consumers at Bloomingdale's.

Macy's recently increased its quarterly dividend to 25 cents per share from 20 cents per share, marking the third dividend increase over the past two years. The share repurchase program has also increased by $1.5 billion.

A company's culture can offer valuable information. In at least 80 percent of cases, you will find a strong company culture at a company that’s achieving good results. Macy's company culture is average. Employees have rated their employer a 2.9 of 5, and 47 percent of employees would recommend the company to a friend. A slightly above average 63 percent of employees approve of CEO Terry J. Lundgren.

Let's take a look at some numbers before forming an opinion on the stock. The chart below compares fundamentals for Macy's, J.C. Penney, and Kohl's.

	M	JCP	KSS
Trailing P/E	14.81	N/A	12.46
Forward P/E	10.83	N/A	10.91
Profit Margin	4.82%	-7.59%	5.11%
ROE	22.28%	-27.43%	15.71%
Operating Cash Flow	2.26B	-10.00M	1.26B
Dividend Yield	1.70%	N/A	2.90%
Short Position	2.60%	33.10%	8.00%

Let's take a look at some more important numbers prior to forming an opinion on this stock.

T = Technicals Are Strong

Macy’s has outperformed its peers for every time frame listed below excluding the past month.

	1 Month	Year-To-Date	1 Year	3 Year
M	10.53%	23.58%	32.35%	122.7%
JCP	31.06%	-4.31%	-43.40%	-27.81%
KSS	9.53%	21.81%	13.93%	2.68%

At $48.00, Macy’s is trading above its averages.

50-Day SMA	44.47
200-Day SMA	40.82

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E = Equity to Debt Ratio Is Normal

The debt-to-equity ration for Macy’s is weaker than the industry average of 0.70, but it still qualifies as normal. That said, Macy’s is on the fringe and should improve its debt management.

	Debt-To-Equity	Cash	Long-Term Debt
M	1.15	1.84B	6.93B
JCP	0.94	930.00M	2.98B
KSS	0.75	537.00M	4.55B

E = Earnings Have Been Strong

What an improvement in regards to earnings. However, notice the awful performance in 2009. This is important because it shows a lack of resiliency. As far as revenue goes, it has consistently increased for three consecutive years.

Fiscal Year	2009	2010	2011	2012	2013
Revenue ($) in billions	24.89	23.49	25.00	26.40	27.69
Diluted EPS ($)	-11.40	0.78	1.98	2.92	3.24

The last quarter (Q1) isn’t included in the chart below. As stated earlier, diluted EPS came in at 55 cents per share, and revenue came in at $6.39 billion. These are both year-over-year improvements.

Quarter	Jan. 31, 2012	Apr. 30, 2012	Jul. 31, 2012	Oct. 31, 2012	Jan. 31, 2013
Revenue ($) in billions	8.72	6.14	6.12	6.08	9.35
Diluted EPS ($)	1.753	0.43	0.67	0.36	1.828

Now let's take a look at the next page for the Trends and Conclusion. Is this stock an OUTPERFORM, a WAIT AND SEE, or a STAY AWAY?

T = Trends Might Support the Industry

The consumer is somewhat healthy at the moment, and that's likely to continue as long as the real estate and stock market continue to perform well. However, the endgame isn't a pleasant one.

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Conclusion

Macy's has increased cash flow, annual revenue and earnings have consistently increased, valuation is fair, and it offers a 1.70 percent yield. On the other hand, Macy's is extremely sensitive to market corrections.

Top 5 Biotech Companies To Watch For 2014

I went out on a limb last week, and now it's time to see how that decision played out.

I predicted that Noodles & Co. (NASDAQ: NDLS  ) would close lower on the week. After seeing the fresh IPO more than double and command a $1.3 billion market cap far sooner than its fundamentals should allow, I figured it would be in for reality check. A negative Barron's piece kicked off the week in the seemingly appropriate bearish tone, but the shares did start to claw their way back later in the week. It wasn't enough. The shares fell 3% on the week. I was right. I predicted that the tech-heavy Nasdaq would outperform the Dow Jones Industrial Average. (DJINDICES: ^DJI  ) . This has been a tricky call lately, so how did it play out this time? Well, the market closed nicely higher this week. The Nasdaq moved 3.5% higher, and the Dow managed to close just 2.2% higher. I was right. My final call was for Peregrine Pharmaceuticals (NASDAQ: PPHM  ) to beat Wall Street's income estimates in its latest quarter. The upstart biotech tackling cancer through monoclonal antibodies has been posting blowout quarterly results over the past year, and I was banking on seeing the trend continue. Analysts were looking for a loss of $0.06 a share during the quarter, and it came through with exactly that. It wasn't a beat, though, so I was wrong.

Two out of three? I can do better than that.

Top 5 Biotech Companies To Watch For 2014: Galena Biopharma Inc (GALE)

Galena Biopharma, Inc. (Galena), formerly RXi Pharmaceuticals Corporation, incorporated on April 3, 2006, is a biotechnology company focused on discovering, developing and commercializing therapies addressing unmet medical needs using targeted biotherapeutics. The Company is pursuing the development of cancer therapeutics using peptide-based immunotherapy products, including its main product candidate, NeuVaxTM (E75), for the treatment of breast cancer and other tumors. NeuVax is a peptide-based immunotherapy intended to reduce the recurrence of breast cancer in low-to-intermediate HER2-positive breast cancer patients not eligible for trastuzumab (Herceptin; Genentech/Roche). On January 19, 2012, the Company initiated enrollment in its Phase 3 PRESENT clinical trial for NeuVax (E75 peptide plus GM-CSF) vaccine in low-to-intermediate HER2 1+ and 2+ breast cancer patients in the adjuvant setting to prevent recurrence (Clinicaltrials.gov identifier NCT01479244). The Prevention of Recurrence in Early-Stage, Node-Positive Breast Cancer with Low to Intermediate HER2 Expression with NeuVax Treatment study is a randomized, multicenter, multinational clinical trial that will enroll approximately 700 breast cancer patients. The Company�� Phase 2 trial of NeuVax achieved its primary endpoint of disease-free survival (DFS). On April 13, 2011, the Company completed its acquisition of Apthera, Inc.,(Apthera).

The Company focuses to start a Phase 2 trial comparing NeuVax in combination with trastuzumab (Herceptin) versus trastuzumab, alone, in a 300-patient, randomized study in the adjuvant breast cancer setting. The Company's second product candidate, Folate Binding Protein-E39 (FBP), is a vaccine, consisting of the peptides E39 and J65, aimed at preventing the recurrence of ovarian, endometrial, and breast cancers. On February 14, 2012, the Company announced the initiation of a Phase 1/2 clinical trial in two gynecological cancers: ovarian and endometrial adenocarcinomas. Folate binding protein has ! very limited tissue distribution and expression in non-malignant tissue and is over-expressed in more than 90% of ovarian and endometrial cancers, as well as in 20% to 50% of breast, lung, colorectal and renal cell carcinomas.

In April 2011, the Company acquired Apthera Inc and its NeuVax product candidate. The Company focuses on developing a pipeline of immunotherapy product candidates for the treatment of various cancers based on the E75 peptide, the advanced of which is NeuVax, which is targeted at preventing the recurrence of breast cancer. NeuVax has had positive Phase 1/2 clinical trial results for the prevention of breast cancer recurrence in patients who have had breast cancer and received the standard of care treatment (surgery, chemotherapy, radiotherapy and hormonal therapy as indicated). The Company had also initiated its Phase 3 PRESENT clinical trial of NeuVax for the prevention of breast cancer recurrence in early-stage low-to-intermediate HER2 breast cancer patients. NeuVax directs killer T-cells to target and destroy cancer cells that express HER2/neu, a protein associated with epithelial tumors in breast, ovarian, pancreatic, colon, bladder and prostate cancers. NeuVax is comprised of a HER2/neu-derived peptide called E75. E75 is a nine-amino acid sequence that is immunogenic (produces an immune response) and GM-CSF is a commercially available protein that acts to stimulate and activate components of the immune system such as macrophages and dendritic cells.

The Company also develops novel applications for NeuVax based on preclinical studies and phases 2 clinical trials which suggest that combining NeuVax and trastuzumab (Herceptin; Genentech/Roche) can increase antigen presentation by tumor cells by promoting receptor internalization and subsequent proteosomal degradation of the HER2 protein. The Company also is pursuing additional therapeutic indications for NeuVax that are in Phase 1/2 clinical trials. RXI-109, is a dermal anti-scarring therapy that targets! connecti! ve tissue growth factor (CTGF) and that may inhibit connective tissue formation in human fibrotic disease.

The Company competes with Roche Laboratories, Inc., Pfizer Inc., Bayer HealthCare AG, Sanofi-Aventis, US, LLC, Amgen, Inc., GlaxoSmithKline plc, Renovo Group plc, CoDa Therapeutics, Inc., Sirnaomics, Inc., FirstString Research, Inc., Merz Pharmaceuticals, LLC, Capstone Therapeutics, Halscion, Inc., Garnet Bio Therapeutics, Inc., AkPharma Inc., Promedior, Inc., Kissei Pharmaceutical Co., Ltd., Eyegene, Derma Sciences, Inc., Healthpoint Biotherapeutics, Pharmaxon, Excaliard Pharmaceuticals, Inc., Alnylam Pharmaceuticals, Inc., Marina Biotech, Inc., Tacere Therapeutics, Inc., Benitec Limited, OPKO Health, Inc., Silence Therapeutics plc, Quark Pharmaceuticals, Inc., Rosetta Genomics Ltd., Lorus Therapeutics, Inc., Tekmira Pharmaceuticals Corporation, Arrowhead Research Corporation, Regulus Therapeutics Inc. and Santaris.

Advisors' Opinion:

• [By Paul Ausick]

  Stocks on the move: Galena Biopharma Inc. (NASDAQ: GALE) is down 15.4% at $1.93 after pricing a secondary offering of 17.5 million units at $2.00. Safeway Inc. (NYSE: SWY) is up 6.1% at $28.21, after an analyst�� upgrade which sent shares to a new 52-week high of $28.88 earlier. Avanir Pharmaceuticals Inc. (NASDAQ: AVNR) is down 18.2% at $4.08.

• [By Sean Williams]

  The waiting game
  The tables are clearly stacked against small biotech companies developing cancer drugs. History has shown that few (if any) have successfully had the Food and Drug Administration approve a late-stage cancer drug. While mid-stage trials of Galena Biopharma's (NASDAQ: GALE  ) HER2-targeting breast cancer vaccine have been promising thus far, the chances of an approval seem a long way off.

Top 5 Biotech Companies To Watch For 2014: Fuse Science Inc (DROP.PK)

Fuse Science, Inc. ( Fuse Science), incorporated on September 21, 1988, is a consumer products holding company. The Company maintains the rights to sublingual and transdermal delivery systems for bioactive agents that can effectively encapsulate and charge many varying molecules in order to produce complete product formulations which can be consumed orally, applied topically or delivered otherwise sublingually or transdermally, thereby bypassing the gastrointestinal tract and entering the blood stream directly. The Fuse Science technology is designed to accelerate conveyance of medicines or nutrients relative to traditional pills and liquids and can enhance how consumers receive these products. In December 2012, the Company launched its initial DROP products, PowerFuse, an energy formulation in a concentrated drop and ElectroFuse, an electrolyte formula in a concentrated drop, online, with the expansion into targeted retail distribution channels.

The Compan y is developing formulations and devices, which are compatible with alternative delivery systems for energy, medicines, vitamins and minerals, among other bioactives. These alternative systems include, but are not limited to, sublingual, transdermal and buccal drug delivery methods. use Science has developed and continues to advance, in conjunction with its scientific team, sublingual and transdermal delivery systems for bioactives that can effectively encapsulate and charge varying molecules in order to produce product formulations which can be consumed orally, applied topically or otherwise delivered sublingually or transdermally, thereby bypassing the gastrointestinal tract and entering the blood stream directly. The delivery technology is consists of encapsulation vesicles and ion exchange permeation enhancers. This technology utilizes a gradient across the mucosa membrane to help deliver the bioactive more efficiently through the mucosa.

The Company

Hot Safest Stocks To Watch For 2014: Dendreon Corporation(DNDN)

Dendreon Corporation, a biotechnology company, engages in the discovery, development, and commercialization of therapeutics to enhance cancer treatment options for patients. The company offers active cellular immunotherapy and small molecule product candidates to treat various cancers. Its product candidates comprise Provenge (sipuleucel-T), an active cellular immunotherapy for the treatment of metastatic, castrate-resistant prostate cancer; DN24-02, an investigational active immunotherapy for the treatment of patients with bladder, breast, ovarian, and other solid tumors expressing HER2/neu; and TRPM8, a small molecule agonist to transient receptor potential ion channel, for multiple cancers. The company also has a range of products in preclinical studies, which include Carcinoembryonic antigen for the treatment of lung, colon, and breast cancer; and Carbonic AnhydraseIX for the treatment of kidney cancer. Dendreon Corporation was founded in 1992 and is headquartered in S eattle, Washington.

Advisors' Opinion:

• [By Brian Orelli]

  The most famous example of these reversals comes from Provenge, the first time that�Dendreon (NASDAQ: DNDN  ) applied for approval. The FDA went against the positive committee recommendation and sent Dendreon back to the drawing board. Investors who read the briefing documents weren't all that surprised.

Top 5 Biotech Companies To Watch For 2014: Osiris Therapeutics Inc.(OSIR)

Osiris Therapeutics, Inc., a stem cell company, focuses on the development and marketing of therapeutic products to treat various medical conditions in the inflammatory, autoimmune, orthopedic, and cardiovascular areas. It operates in two business segments, Therapeutics and Biosurgery. The Therapeutics segment focuses on developing biologic stem cell drug candidates from a readily available and non-controversial source, adult bone marrow. The Biosurgery segment works to harness the ability of cells and novel constructs to promote the body's natural healing. This segment focuses on developing biologic products for use in surgical procedures. The company?s lead biologic drug candidate is Prochymal, which is in phase 2 and 3 clinical trails for various indications, including acute graft versus host disease (GvHD), Crohn's disease, acute myocardial infarction, type 1 diabetes, pulmonary disease, and gastrointestinal injury resulting from radiation exposure. Its biologic drug candidates also include Chondrogen, a preparation of adult mesenchymal stem cells that is in phase 2 clinical trials for osteoarthritis and cartilage protection. The company has collaboration agreements with Genzyme Corporation for the development and commercialization of Prochymal and Chondrogen in various countries except in the United States and Canada. It also has a partnership with Juvenile Diabetes Research Foundation for the development of Prochymal as a treatment for the preservation of insulin production in patients with newly diagnosed type 1 diabetes mellitus. Osiris Therapeutics, Inc. was founded in 1992 and is headquartered in Columbia, Maryland.

Advisors' Opinion:

• [By Maxx Chatsko]

  Additionally, stem cell therapies have remained elusive as the industry's ultimate Holy Grail. Osiris (NASDAQ: OSIR  ) received Canadian approval for the world's first stem cell drug, Prochymal, for children battling acute graft-versus-host disease, or GvHD, last year. The approval meant more symbolically than to the bottom line, but it definitely put the potential of stem cells front and center for investors.

• [By Alexander Maxwell]

  One of the companies attempting to develop a better treatment for chronic diabetic foot ulcers is Osiris Therapeutics� (NASDAQ: OSIR  ) . Earlier this month, Osiris shares more than doubled as the company announced positive data for its CDFU drug Grafix. The study results were very impressive to say the least; the study was stopped early due to the overwhelming efficacy exhibited by the treatment. A main highlight is the fact that 62% of Grafix patients had their wound closed at 12 weeks, compared to only 21% of patients using conventional methods. Clearly, the efficacy in this endpoint was overwhelming. Grafix also achieved all of the secondary endpoints for the trial, and more importantly demonstrated a relatively benign safety record.�

Top 5 Biotech Companies To Watch For 2014: Sanofi(SNY)

sanofi-aventis engages in the discovery, development, and distribution of therapeutic solutions to improve the lives of everyone. The company offers a range of healthcare assets, including a broad-based product portfolio in prescription drugs, OTC/OTX, generics, vaccines, and animal health. It has a strategic alliance with Regulus Therapeutics Inc. to discover, develop, and commercialize micro-RNA therapeutics, initially in fibrosis. The company was founded in 1970 and is headquartered in Paris, France.

Advisors' Opinion:

• [By Max Macaluso and David Williamson]

  At the end of last week, a Bloomberg article revealed that Shire (NASDAQ: SHPG  ) and pharmaceutical giant Sanofi� (NYSE: SNY  ) may be circling ViroPharma� (NASDAQ: VPHM  ) . The the following video, from The Motley Fool's health care show Market Checkup, analysts David Williamson and Max Macaluso take a close look at ViroPharma and discuss the recent interest in this small biotech company.

• [By Keith Speights]

  Eylea isn't the only feather in Regeneron's cap, though. The company partnered with Sanofi (NYSE: SNY  ) on colorectal cancer drug Zaltrap, which gained FDA approval last August. While sales were sluggish initially, a steep price cut for the drug to make it more competitive should help.

• [By Sean Williams]

  On the other end of the spectrum is Sanofi's (NYSE: SNY  ) Lantus, which is a once-daily injection that can work in the body for up to 20-24 hours, but can also be combined with a short-acting insulin if needed. Lantus has been an absolute blockbuster diabetes drug up until now, garnering worldwide sales of more than $6 billion in 2012.

First Take: Apple shares slide on profit concerns

SAN FRANCISCO -- Apple on Monday reported shrinking quarterly and yearly profits, raising concerns over its recent down market debut into colorful iPhones.

Wall Street has been debating Apple's move into lower-cost smartphones because iPhones make up more than half of the company's profits. Apple's reported its gross margin was 37%, compared with 40% a year ago.

Apple reported sales of 33.8 million iPhones in its fourth quarter. Analysts were expecting Apple to report iPhone sales ranging 33 million to 36 million units in the quarter, ended Sept. 28. Apple was reported to have cut back on manufacturing of its colorful 5C because of lagging demand in the quarter.

Shares of Apple fell 2%, to $518.50, in after-hours trading.

Apple's once-dominant iPhones and iPads face fierce competition. Samsung and other manufacturers, whose smartphones and tablets run Google's Android, put pricing pressures on Apple's premium-priced wares in competition for consumers.

The gadget giant sold more than 9 million iPhones in the debut weekend of its 5S an 5C models, which went on sale Sept. 20.

Apple reported net income of $7.5 billion on $37.5 billion in revenue in the quarter, beating analyst expectations. Analysts on average were expecting Apple to report fourth-quarter net income of $7.2 billion on $36.9 billion in revenue, according to the survey of estimates from Thomson Reuters. Apple reported net income of $8.2 billion in the same period a year ago.

Top 5 Growth Companies To Watch For 2014

Forecasts were for Apple to report declining full-year net income of $36.8 billion compared with $41.7 billion a year ago.

Analysts will be watching Apple's growth potential in the current quarter as it heads into the all-important holiday shopping season. The company last week unveiled two new iPads, both going on sale in November.

Console Gaming Is Safe -- for Now

Not long ago, Ouya represented a potentially disruptive threat to console gaming. The affordable $99 gaming console that was looking to borrow from mobile platforms in more ways than one had serious potential to hurt Microsoft (NASDAQ: MSFT  ) and Sony (NYSE: SNE  ) just as they prepare to release their respective next-generation consoles.

Instead of using bleeding-edge hardware coupled with a licensing model, Ouya opted for modest mobile ingredients typically found in smartphones and embraced Google (NASDAQ: GOOG  ) Android for its extensive library of existing games. Ouya is also betting big on the freemium model, requiring developers to offer a free version of all games with the hopes that gamers will pay up for additional content of virtual goods.

Sadly, Ouya isn't living up to those lofty expectations. For most of the early developers that made the plunge to port their games to Ouya, it hasn't moved the needle in any meaningful way, according to a new report from IGN. Some developers are enjoying success, and fortunately Android games are extremely easy to port since Ouya runs on Google's platform.

There haven't been any blockbusters, though, and there aren't any exclusive titles that can convince customers to buy Ouya. The small company has recently launched a Free The Games Fund, putting up $1 million to match Kickstarter pledges, with the hopes of getting some exclusive content. Ouya had plenty left over after it was Kickstarted, since it overshot its goal by $7.6 million, so it's giving some back to the Kickstarter community.

Ouya's biggest weakness is the overall quality of titles available, with some already straining the NVIDIA Tegra 3 processor inside. The Motley Fool's senior tech analyst, Fool Eric Bleeker, also wasn't overly impressed with the console's execution, since the hardware isn't top-notch and the available titles are similarly mediocre.

Microsoft has already sold out of Xbox One preorders, after it reversed course on its initial strategy. Following Microsoft's early backlash, Sony had increased its internal forecast for the PlayStation 4, and there's no word to whether or not the Japanese company subsequently reduced its estimates after Microsoft's reversal.

As the Xbox One and PlayStation 4 prepare to hit the market later this year, Microsoft and Sony can rest assured that the Ouya won't be stealing sales.

It's incredible to think just how much of our digital and technological lives are almost entirely shaped by just a handful of companies like Microsoft and Google. Find out "Who Will Win the War Between the 5 Biggest Tech Stocks?" in The Motley Fool's latest free report, which details the knock-down, drag-out battle being waged by the five kings of tech. Click here to keep reading.

HP's Board of Directors Gets Some New Blood

Hewlett-Packard (NYSE: HPQ  ) took one much-needed step in the right direction today. HP's boardroom just gained three new regulars, and it's a high-quality infusion of new blood.

HP's board of directors is often held up as an example of terrible corporate governance. In 2011, ethics and governance expert Nell Minow wondered, "Could there be a worse board?" The company added one director the next month: activist fund manager Ralph Whitworth. Four directors left the board in 2012, including the entire nominating committee that made Leo Apotheker CEO. Otherwise, this group of error-prone directors has remained static since Ms. Minow hung them out to dry.

But today, HP finally added some fresh talent to the boardroom. They're not just some no-name fund-managers and also-rans, either; these are three proven winners who may in fact shake up HP's rudderless operations.

Meet the new faces
These names should be familiar to many investors, but let's do a quick rundown of their qualifications anyhow.

Former Microsoft software architect Ray Ozzie. Image source: Ray Ozzie's official Twitter feed.

Ray Ozzie is a legend of software development. He launched Lotus Notes long before IBM acquired that productivity toolkit and made it central to Big Blue's software strategy. At Microsoft (NASDAQ: MSFT  ) , he championed cloud computing and social media before it was cool. Ozzie took over the role of chief software architect when Bill Gates retired, leaving day-to-day CEO-type operations to Steve Ballmer.

With Ozzie in the boardroom, I wouldn't be surprised to see him nudging the company deeper into software and services, much like Apotheker once did. The big difference this time is that Ozzie comes with much stronger credentials: Apotheker ran a not-particularly-strong operation at SAP; Ozzie, the world's largest software machine. HP CEO Meg Whitman could use someone with a clear vision who isn't afraid to correct the boss when necessary.

Dob Bennett, former CEO of Liberty Interactive. Image source: Liberty spin-off Discovery Communications.

Robert "Dob" Bennett was CEO of Liberty Interactive (NASDAQ: LINTA  ) from 1997 to 2005. He steered the Internet-leaning company through the dot-com bust and came out stronger. Under Bennett's leadership, Liberty Interactive grew annual sales from $1.2 billion to $7.6 billion. He's been known to stand up to Liberty chairman John Malone on occasion, and he still serves as a board member or executive in several of Liberty's offshoots.

So here's another software and services expert with some experience in pushing back against corporate bigwigs. Put this character together with Ray Ozzie, and I smell sparks flying in the boardroom.

Former McDonald's CEO and current Walgreen chairman Jim Skinner. Image source: Marketwire.

Jim Skinner is the least controversial, but perhaps the most impressive, of HP's new board members.

Skinner spent 41 years at McDonald's, including eight years as CEO. Average shareholder returns under his guidance were an eye-popping 21%, thanks to his focus on "being better, not just bigger." HP could sure use a generous dose of that mind-set.

After retiring from Mickey D's, Skinner took the chairman's throne for convenience-store giant Walgreens. Almost exactly one year later, Walgreen shares have soared 60% higher, absolutely crushing the Dow Jones' (DJINDICES: ^DJI  ) historic 20% run. It's hard to pin that rush directly on Skinner's appointment, but his presence clearly doesn't hurt.

The impact on HP
Between these three names, HP gains the following:

Two former CEOs of S&P 500 companies, including one Dow leader. Ozzie is the holdout here with "only" a senior leadership role at Dow component Microsoft (but that always seemed like half of Bill Gates' old baton, the other half having been passed to Steve Ballmer).

Three proven winners with strong opinions on how to run a large-scale business. None of these three will back down from a challenge if he sees things going wrong at HP.

Something like 80 years' worth of top-level management experience.

Is this an instant revolution in the making? Maybe not, but Whitman and interim chairman Ray Lane have taken a big step away from the pushover boardroom politics of years past. They can expect to have their ideas challenged on a regular basis, and that can't be bad for HP -- or its sharehodlers.

Top 5 Growth Stocks To Buy Right Now

HP has become an also-ran in the tech industry without falling out of the Dow. It's incredible how our digital and technological lives are almost entirely shaped by just a handful of companies. Find out "Who Will Win the War Between the 5 Biggest Tech Stocks?" in The Motley Fool's latest free report, which details the knock-down, drag-out battle being waged by the five kings of tech. Click here to keep reading.

Top Energy Stocks To Own For 2014

The great debate over natural gas exports has taken a very interesting turn. President Obama, in a speech last weekend, hinted that the U.S. could be a net exporter of gas by the end of the decade. This move, it would appear, puts him on the same side as none other than ExxonMobil (NYSE: XOM  ) .

Exxon and companies such as Dow Chemical (NYSE: DOW  ) and Alcoa (NYSE: AA  ) have been sparring back and forth recently�over exports. The two manufacturing giants are vocally opposing unchecked LNG exportation because of the energy-intensive nature of their businesses. These heavy users of gas believe that unabated natural gas exports will cause the price of natural gas to rise dramatically.

ExxonMobil and other export advocates believe that exporting natural gas would actually be healthy for our economy. Higher gas prices would entice producers to invest in drilling projects, which would create jobs and generate more tax revenue. It's a case that was recently boosted by a study from the U.S. Energy Information Administration, which concluded that there would be a "net benefit" to furthering natural gas exports. The report concluded that any increase in the price of natural gas, which it deemed to be minor, would be more than offset by an increase in economic output.

Top Energy Stocks To Own For 2014: Samson Oil and Gas Ltd (SSN)

Samson Oil & Gas Limited (Samson), incorporated on April 6, 1979, is engaged in exploration and development of oil and natural gas properties in the United States. Samson owns a working interest in each of its three material producing properties, through which it has entered into operating agreements with third parties under which the oil and gas are produced and sold. The Company also has 100% working interest in one exploration property and 50% to 100% in a second property. As of June 30, 2012, the Company�� properties included North Stockyard Project; State GC Oil and Gas Field, New Mexico; Davis Bintliff (Sabretooth Prospect), Brazoria County, Texas; Hawk Springs Project, Goshen County, Wyoming, and Roosevelt Project, Roosevelt County, Montana. As of June 30, 2012, the Company along with its subsidiaries produced approximately 87,956 barrels of oil and 214,463 thousand cubic feet of gas.

North Stockyard Project -Williston Basin, North Dakota

Samson has 34.5% working interest in 3,303 acres adjacent to the North Stockyard Oil Field, which is located in the Williston Basin in North Dakota and is operated by Zavanna LLC. Together with the Company�� working interest owners, it has drilled seven wells in this field, six in the Bakken formation and one in the Mission Canyon formation. During July 2012, the Harstad #1-15H well averaged 15 barrels of oil per day (BOPD). The Leonard-23H (10% working interest, 37.5% after non-consent penalty) is a Mississippian Middle Bakken Formation. In July 2011, this well averaged 46 barrels of oil per day. The Company drilled its third Bakken well in the North Stockyard Field, the Gary-24H (37% working interest). During July 2012, this well averaged 75 BOPD. It drilled its fourth Bakken well in the North Stockyard Field, the Rodney-14H (27% working interest). In July 2011, this well averaged 92 BOPD. It drilled its fifth Bakken well in the North Stockyard Field in Williams County, North Dakota, the Earl 1-13H (32% working interest). In Jul! y 2011, the well averaged 193 BOPD. In June 2011, it drilled its sixth Mississippian Bakken well in the North Stockyard field in Williams County, North Dakota, the Everett 1-15H (26% working interest). As of June 30, 2012, the North Stockyard project had net proved reserves of 598,500 barrels of oil and 757,800 thousand cubic feet (of natural gas).

State GC Oil and Gas Field, New Mexico

The State GC oil and gas field is located in Lea County, New Mexico, and covers approximately 600 acres. As of June 30, 2012, the field had two wells, the State GC#1 and State GC#2. Average daily production during the year ended June 30, 2012 from the State GC oil and gas field was approximately 43 BOPD and 37 million standard cubic feet per day. As of June 30, 2012, the State GC oil and gas field had net proved reserves of 65,500 barrels of oil and 87,300 thousand cubic feet (of natural gas).

Davis Bintliff #1 Well (Sabretooth Prospect), Brazoria County, Texas

The Davis Bintliff #1 well is operated by Davis Holdings. During the year ended June 30, 2012, this well averaged 29 BOPD and 2.61million cubic feet per day. As of June 30, 2012, the Davis Bintliff well had net proved reserves of 700 barrels of oil and 66,400 Thousand cubic feet (of natural gas).

Hawk Springs Project, Goshen County, Wyoming

The Company has 37.5%-100% working interest in Hawk Springs Project. The Spirit of America 1 replacement well, Spirit of America 2, was successfully drilled to a total depth of 10,634 feet during the fiscal year ended June 30, 2012 (fiscal 2012).

Roosevelt Project, Roosevelt County, Montana

The well was drilled to a total measured depth of 14,972 feet with the horizontal lateral remaining within the target zone for the entire lateral length. approximately 3,425 barrels of oil have been produced.

Advisors' Opinion:

• [By James E. Brumley]

  Had Samson Oil & Gas Limited (NYSEMKT:SSN) made the late-July surge and subsequent early-August pullback and then gotten stuck in the mud again, I might not even bother taking a look at it. That's not how it happened though. Since the pullback, SSN has perked up again, perhaps not as hot as it was with the initial rally at the end of last month, but more than hot enough to get my attention. I suspect another surge - perhaps a longer-lasting surge - is in the cards.

Top Energy Stocks To Own For 2014: Energy XXI(Bermuda)

Energy XXI (Bermuda) Limited, together with its subsidiaries, engages in the acquisition, exploration, development, production, and operation of oil and natural gas properties onshore in Louisiana and Texas, and offshore in the Gulf of Mexico. The company operates or has interest in 419 gross producing wells in 41 producing fields on 254,891 net developed acres. As of June 30, 2011, its net proved reserves were 116.6 million barrels of oil equivalent. The company was founded in 2005 and is based in Hamilton, Bermuda.

Hot Bank Companies To Invest In 2014: Magellan Midstream Partners L.P.(MMP)

Magellan Midstream Partners, L.P., together with its subsidiaries, engages in the transportation, storage, and distribution of refined petroleum products and crude oil in the United States. Its pipeline system transports petroleum products and liquefied petroleum gases from the Gulf Coast refining region of Texas through the Midwest to Colorado, North Dakota, Minnesota, Wisconsin, and Illinois. The company owns and operates marine terminals, which store and distribute refined petroleum products, blendstocks, crude oils, heavy oils, and feedstocks, as well as inland terminals that consist of storage tanks connected to third-party interstate pipeline systems to deliver refined petroleum products. Its ammonia pipeline system transports ammonia from production facilities in Texas and Oklahoma to terminals in the Midwest. The company also stores, blends, and distributes biofuels, such as ethanol and biodiesel. As of March 31, 2011, it operated approximately 9, 600 miles of petr oleum products pipeline system and 51 terminals; 6 marine petroleum terminals located along the United States Gulf and East Coasts; a crude oil storage in Cushing, Oklahoma; 27 petroleum products inland terminals located principally in the southeastern United States; and a 1,100-mile ammonia pipeline system and 6 associated terminals. The company also provides ancillary services, such as heating, blending, and mixing of stored petroleum products and additive injection services. Its customers comprise independent and integrated oil companies, wholesalers, retailers, railroads, airlines, and regional farm co-operatives. The company serves various markets, including retail gasoline stations, truck stops, farm co-operatives, railroad fueling depots, and military and commercial jet fuel users. Magellan GP, LLC serves as the general partner of the company. The company was founded in 2000 and is based in Tulsa, Oklahoma.

Advisors' Opinion:

• [By WilliamBriat]

  
  On September 17, Magellan Midstream Partners L.P. (NYSE: MMP) and El Paso Pipeline Partners, L.P. (NYSE: EPB) touched three-month lows while oil was still spiking near a two-year high.

Top Energy Stocks To Own For 2014: Freedom Energy Holdings Inc (FDMF)

Freedom Energy Holdings, Inc. (FDMF), incorporated in June 2005, is a holding company with a focus on the identification of opportunities within the oil and energy sectors. KC-9000 is the Company�� heavy oil technology, to assist in the recovery of heavy oil. As of December 31, 2011, the Company research had developed and shown a new product SR-139 at breaking down asphalt shingles allowing the extraction and recovery of hydrocarbons.

KC-9000 is a micro-emulsion technology. KC 9000 is a micro-emulsion developed to assist in the recovery and extraction of heavy based hydrocarbons that are saturated with high metals and paraffin content. KC 9000 is used for tank cleaning processes. By injecting KC 9000 directly into the tank port holes, at the tank bottom, with the emulsifies turning into an easily extractable slurry.

Top Energy Stocks To Own For 2014: Range Resources Corporation(RRC)

Range Resources Corporation, an independent natural gas company, engages in the acquisition, exploration, and development of natural gas properties primarily in the Appalachian and southwestern regions of the United States. The company?s Appalachian region drilling and producing activities include tight-gas, shale, coal bed methane, and conventional natural gas and oil production in Pennsylvania, Virginia, Ohio, and West Virginia. It owns 4,969 net producing wells, approximately 2,750 miles of gas gathering lines, and approximately 1.8 million gross acres under lease. The company?s Southwestern drilling and producing activities cover the Barnett Shale of North Texas, the Permian Basin of West Texas and eastern New Mexico, the East Texas Basin, the Texas Panhandle, and the Anadarko Basin of Western Oklahoma. It owns 1,954 net producing wells, as well as approximately 886,000 gross acres under lease. As of December 31, 2010, Range Resources Corporation had had 4.4 Tcfe of pr oved reserves. It sells gas to utilities, marketing companies, and industrial users. The company was formerly known as Lomak Petroleum, Inc. and changed its name to Range Resources Corporation in 1998. Range Resources Corporation was founded in 1975 and is headquartered in Fort Worth, Texas.

Advisors' Opinion:

• [By Matt DiLallo]

  Looking ahead
  Vanguard recently completed its $268.8 million acquisition of assets in the Permian Basin from Range Resources (NYSE: RRC  ) . These were liquids-weighted assets, with only 43% of the reserves weighted toward natural gas. It was a good deal for both sides, as Range is focusing its resources and personnel on the highest return projects in its portfolio, making these cash flow assets a much better strategic fit for Vanguard as they enable the company to grow its liquids production and related cash flow.

• [By Doug Ehrman]

  The report
  The group bases its report on how much natural gas it believes is recoverable in the U.S. using only currently available technologies, but ignoring any cost constraints that might act as a disincentive to the actual recovery of the supply. The boom in hydraulic fracturing ��more commonly referred to as fracking ��is primarily responsible to the increase. Geographically, the Marcellus Shale, stretching from New York across Pennsylvania to Ohio, has been at the center of the supply glut. Both Chesapeake and Range Resources (NYSE: RRC  ) have large holdings in the area. Range Resources has faced far fewer non-natural-gas setbacks than Chesapeake ��specifically, Range did not suffer from the misbehavior of its CEO ��and its stock is up nearly 50% over the last two years. The fates of different natural gas stocks have been very company-specific of late.

• [By CRWE]

  RANGE RESOURCES CORPORATION (NYSE:RRC) reported that its Board of Directors declared a quarterly cash dividend on its common stock. A dividend of $0.04 per common share is payable on June 29, 2012 to stockholders of record at the close of business on June 15, 2012.

Top Energy Stocks To Own For 2014: DayStar Technologies Inc.(DSTI)

DayStar Technologies, Inc., a development stage company, engages in the development, manufacture, and marketing of solar photovoltaic products to the grid-tied and ground-based photovoltaic markets. The company offers solar photovoltaic modules to convert sunlight into electricity. It provides monolithically integrated copper indium gallium selenide modules on glass laminate substrates for centralized utility power plants, commercial building roof tops, and smaller residential roof tops. DayStar Technologies, Inc. was founded in 1997 and is headquartered in Milpitas, California.

Top Energy Stocks To Own For 2014: Solazyme Inc (SZYM.O)

Solazyme, Inc. (Solazyme), incorporated on March 31, 2003, makes oil. The Company�� technology transforms a range of plant-based sugars into oils. Its renewable products can replace or enhance oils derived from the world�� three existing sources-petroleum, plants and animal fats. The Company is focused on commercializing its products into three target markets: fuels and chemicals, nutrition, and skin and personal care. In 2010, the Company launched its products, the Golden Chlorella line of dietary supplements. In March 2011, the Company launched its Algenist brand for the luxury skin care market through marketing and distribution arrangements with Sephora S.A. (Sephora International), Sephora USA, Inc. (Sephora USA), and QVC, Inc. (QVC).

The Company is engaged in development activities with multiple partners, including Chevron U.S.A. Inc., through its division Chevron Technology Ventures (Chevron), The Dow Chemical Company (Dow), Ecopetrol S.A. (Ecope trol), Qantas Airways Limited (Qantas) and Conopoco, Inc., doing business as Unilever (Unilever).

In 2010, the Company entered into a 50/50 joint venture with Roquette Freres, S.A. (Roquette). In November 2010, the Company entered into a joint venture and operating agreement for Solazyme Roquette Nutritionals with Roquette. In December 2010, the Company entered into an exclusive distribution relationship with Sephora International, and in January 2011, the Company entered into a distribution relationship with Sephora USA. Under the arrangements, each of Sephora International and Sephora USA will distribute the Algenist product line in their respective territories.

In Fuels and Chemicals market its renewable oils can be refined and sold as drop-in replacements for marine, motor vehicle and jet fuels, as well as replacements for chemicals that are traditionally derived from petroleum or other conventional oils. The Company work with its refining par tner Honeywell UOP to produce Soladiesel (renewable diesel! ),! Soladiesel renewable diesel for United States Naval vessels, and Solajet renewable jet fuel for both military and commercial application testing. In nutrition market the Company has developed microalgae-based food ingredients, including oils and powders that enhance the nutritional profile and functionality of food products while reducing costs for consumer packaged goods (CPG) companies. In Skin and Personal Care market the Company hs developed a portfolio of branded microalgae-based products. Its ingredient is Alguronic Acid, which the Company has formulated into a range of skin care products with anti-aging benefits. The Company is also developing algal oils as replacements for the oils used in skin and personal care products.

The Company competes with BP p.l.c., Royal Dutch Shell plc, and Exxon Mobil Corporation, jatropha, camelina, SALOV North America Corporation, Archer Daniels Midland Company, Cargill, Incorporated, DSM Food Specialties and Danisco A/S< /p>

Top Energy Stocks To Own For 2014: EXCO Resources NL(XCO)

EXCO Resources, Inc., an independent oil and natural gas company, engages in the exploration, exploitation, development, and production of onshore North American oil and natural gas properties with a focus on shale resource plays. The company holds interests in various projects located in East Texas, North Louisiana, Appalachia, and the Permian Basin in west Texas. As of December 31, 2010, it had proved reserves of approximately 1.5 trillion cubic feet equivalent; and operated 7,276 wells. The company was founded in 1955 and is based in Dallas, Texas.

Advisors' Opinion:

• [By Arjun Sreekumar]

  EXCO Resources (NYSE: XCO  ) has also seen meaningful improvements�in drilling days, reporting that it drilled its most recent wells in about 34 days, down from 45-60 days a few years ago. These and other efficiency gains helped the Dallas-based company reduce its well costs by about 20% from the end of 2011, with current costs in its core DeSoto area down to about $7.8 million-$8 million.

• [By Tyler Crowe]

  Using this simple thesis not only makes the whole idea of LNG exports rather simple, it doesn't need to drastically change the way you think about the energy space already. For those who are a little more tolerant of risk, natural gas producers should look a bit more attractive. Low-cost producers like Ultra Petroleum (NYSE: UPL  ) and Exco Resources (NYSE: XCO  ) beat analyst expectations this past quarter because the small uptick in gas prices gave them enough room to profit. If we were to see an uptick in demand thanks to natural gas, then these companies could stand to profit greatly.�

• [By Tyler Crowe]

  Right now, natural gas spot prices are in the $4.00 range. For low-cost natural gas producers like Ultra Petroleum (NYSE: UPL  ) and Exco Resources (NYSE: XCO  ) , a $4 price for gas will be a welcome sight. Exco had written down so many assets because of low gas prices, the company expects profits as long as gas remains above $2.15. Once LNG exports do come on line, an uptick in natural gas prices is expected, but not one that is so severe. More importantly, companies like Ultra and Exco that deal exclusively with natural gas will not have to worry as much about wild price swings.�

High-tech blunders: HealthCare.gov isn’t alone

Three weeks after it opened, HealthCare.gov — where millions of people are supposed to get insurance under the Affordable Care Act — remains plagued by problems. President Obama has said his administration is doing "everything we can possibly do" to get things fixed. The debacle is just one of many high-tech blunders over the years. Here are just a few:

Y2K

Dec. 31, 1999

Despite cries of a digital apocalypse, no such thing happened as the computer world entered the year 2000. Billions upon billions of dollars were spent, and retired programmers were hauled in to address the Millennium bug, but few things were awry, resulting in a Chicken Little-like scene.

Microsoft Vista

January 2007

Shortly before iPhone debuted in 2007, Microsoft introduced Vista, an operating system packed with security and other bells and whistles. But the timing coincided with a rise in the smartphone, and Vista was dinged for being slow because of bloated features. Plus, Microsoft users were fine with XP, a predecessor of Vista.

Yahoo rejects Microsoft bid

February 2008

In 2008, Yahoo said Microsoft's $44.6 billion takeover offer "substantially undervalues" the Internet icon, and decided to go it alone. While it didn't involve technology, the decision is considered among the worst in Silicon Valley history, accelerating a downturn in Yahoo's fortunes and leading to a dizzying six company CEOs over the past several years.

United, Continental merge computer systems

March and August 2012

United Airlines had problems with its reservations system in early March after it switched to Continental's computer system as the two airlines merged operations. Passengers complained as United struggled for several days to fix problems. In late August, the airline's computer system and website went down causing problems with reservations, ticketing and check-ins.

Apple Maps

September 2012

Some consider the wrong-way directions from Apple Maps last year as ! the biggest failure in the company's storied history. The problems led to executive firings and helped solidify Google Maps as the go-to app for navigating.

HP write-downs

November 2012

Hewlett-Packard's whopping $8.8 billion write-off in its fourth quarter of enterprise information-technology company Autonomy, amid accusations of accounting regularities, was both a financial and public-relations black eye. It came on the heels of an $8 billion charge in August for another HP acquisition, Electronic Data Systems, complicating the turnaround plans of HP CEO Meg Whitman.

American flights held for 2 hours

April 2013

A computer glitch led American Airlines to hold all flights on the ground due to occasional outages in its computer system. American and regional carrier American Eagle canceled 670 flights. The number of cancellations, while significant, was a fraction of the airline's 3,400 flights.

Nasdaq goes dark

August 2013

A major trading glitch knocked out the Nasdaq Stock Market for about three hours Aug. 22. Despite that, all three major U.S. stock indexes finished up that day. The fact that the Dow didn't plunge 1,000 points as it did during the "Flash Crash" in May 2010, coupled with the fact that the glitch appeared to be technical in nature and not cyberwarfare, produced a ho-hum reaction.

Popular infomercial pitchman Kevin Trudeau jailed

Kevin Trudeau, the popular infomercial pitchman who sold you things you didn't think you needed before selling you books about things the government supposedly didn't want you to know, has been jailed for repeatedly failing to pay $37 million in civil fines.

Trudeau was jailed for contempt of court Tuesday by U.S. District Judge Robert Gettleman in Chicago for failing to pay a Federal Trade Commission fine. Trudeau spent a night in jail last month after arguing that he had no money.

Trudeau, 50, became a best-selling author using TV to promote books such as Natural Cures "They" Don't Want You to Know About, which suggested the government and pharmaceutical companies had conspired to hide or devalue cures to medical problems ranging from constipation to cancer. That book and several followups, including More Natural "Cures" Revealed; Previously Censored Brand Name Products That Cure Disease, drew criticism from scientists and medical experts.

Ironically, Trudeau's writing career evolved after a settlement with FTC, which banned him from selling products other than books. The $37 million fine was levied against Trudeau for violating the FTC settlement.

Gettleman, who in 2007 ordered Trudeau from appearing in any infomercials for three years, said the fine amounted to what consumers had paid for Trudeau's books.

It's unclear how long Trudeau will remain in jail. Last week, Gettleman had postponed Tuesday's jailing so Trudeau could attend a legal defense fund-raiser in Washington, D.C.

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Gettleman told Trudeau he would stay incarcerated until he reveals the offshore bank accounts where he's believed to have stashed money and gold. The FTC alleged that Trudeau recently spent $12,000 on watches and jewelry.

"I don't have another alternative but to incarcerate you," Gettleman said. "It really saddens me, Mr. Trudeau. You're a sm! art guy. Maybe too smart. Perhaps you've outsmarted yourself."

For most of the 1990s, Trudeau was ubiquitous on late-night TV, featured in infomercial products promoting health products ranging from baldness remedies to dietary supplements.

Trudeau was convicted in 1991 of fraud for charging over $122,000 on stolen credit card numbers and spent two years in federal prison.

Follow Strauss on twitter @gbstrauss

Jim Cramer's 6 Stocks in 60 Seconds: GT FHN XEC DF SLB AGN (Update1)

5 Best Value Stocks To Invest In Right Now

Check out Jim Cramer's latest trading recommendations on "Action Alerts Plus". (Updates from 10:36 a.m. ET with closing information.)

NEW YORK (TheStreet) -- Here's what Jim Cramer had to say on CNBC's "Squawk on the Street" Monday.

Although Deutsche Bank downgraded Goodyear Tire & Rubber (GT) to hold from buy, Cramer wasn't so sure about it. He said the stock has been red-hot this year. GT plummeted 6.7% to $21.12.

First Horizon National (FHN) missed on earnings estimates. Cramer said he can't figure out what's wrong with the company but he does like the stock. FHN fell 1.2% to $10.88. Cramer said he's surprised by Cimarex Energy's (XEC) current stock price, saying the company is "worth a lot more than it's selling for." XEC dropped 1.3% to $108.99. Cramer suggested commodity food companies are doing better now in the market, and reminded investors Dean Foods (DF) is big in milk. DF rose 1% to $18.42. Schlumberger's (SLB) orders in the Middle East and Pacific continue to drive the stock higher, Cramer said. SLB was 1% lower to $93.48. Investors are still worried about Allergan (AGN) and its patents, but Cramer said he likes the stock and CEO Dave Pyott is "money in the bank." AGN was flat at $90.47. To sign up for Jim Cramer's free Booyah! newsletter, with all of his latest articles and videos, please click here. -- Written by Bret Kenwell in Petoskey, Mich. Follow @BretKenwell

Show Me the Money, A. Schulman

Although business headlines still tout earnings numbers, many investors have moved past net earnings as a measure of a company's economic output. That's because earnings are very often less trustworthy than cash flow, since earnings are more open to manipulation based on dubious judgment calls.

Earnings' unreliability is one of the reasons Foolish investors often flip straight past the income statement to check the cash flow statement. In general, by taking a close look at the cash moving in and out of the business, you can better understand whether the last batch of earnings brought money into the company, or merely disguised a cash gusher with a pretty headline.

Calling all cash flows
When you are trying to buy the market's best stocks, it's worth checking up on your companies' free cash flow once a quarter or so, to see whether it bears any relationship to the net income in the headlines. That's what we do with this series. Today, we're checking in on A. Schulman (Nasdaq: SHLM  ) , whose recent revenue and earnings are plotted below.

Source: S&P Capital IQ. Data is current as of last fully reported fiscal quarter. Dollar values in millions. FCF = free cash flow. FY = fiscal year. TTM = trailing 12 months.

Over the past 12 months, A. Schulman generated $51.0 million cash while it booked net income of $51.8 million. That means it turned 2.4% of its revenue into FCF. That doesn't sound so great. FCF is less than net income. Ideally, we'd like to see the opposite.

All cash is not equal
Unfortunately, the cash flow statement isn't immune from nonsense, either. That's why it pays to take a close look at the components of cash flow from operations, to make sure that the cash flows are of high quality. What does that mean? To me, it means they need to be real and replicable in the upcoming quarters, rather than being offset by continual cash outflows that don't appear on the income statement (such as major capital expenditures).

For instance, cash flow based on cash net income and adjustments for non-cash income-statement expenses (like depreciation) is generally favorable. An increase in cash flow based on stiffing your suppliers (by increasing accounts payable for the short term) or shortchanging Uncle Sam on taxes will come back to bite investors later. The same goes for decreasing accounts receivable; this is good to see, but it's ordinary in recessionary times, and you can only increase collections so much. Finally, adding stock-based compensation expense back to cash flows is questionable when a company hands out a lot of equity to employees and uses cash in later periods to buy back those shares.

So how does the cash flow at A. Schulman look? Take a peek at the chart below, which flags questionable cash flow sources with a red bar.

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

When I say "questionable cash flow sources," I mean items such as changes in taxes payable, tax benefits from stock options, and asset sales, among others. That's not to say that companies booking these as sources of cash flow are weak, or are engaging in any sort of wrongdoing, or that everything that comes up questionable in my graph is automatically bad news. But whenever a company is getting more than, say, 10% of its cash from operations from these dubious sources, investors ought to make sure to refer to the filings and dig in.

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With questionable cash flows amounting to only -1.9% of operating cash flow, A. Schulman's cash flows look clean. Overall, the biggest drag on FCF came from capital expenditures, which consumed 35.2% of cash from operations.

A Foolish final thought
Most investors don't keep tabs on their companies' cash flow. I think that's a mistake. If you take the time to read past the headlines and crack a filing now and then, you're in a much better position to spot potential trouble early. Better yet, you'll improve your odds of finding the underappreciated home-run stocks that provide the market's best returns.

Can your portfolio provide you with enough income to last through retirement? You'll need more than A. Schulman. Learn how to maximize your investment income and get "The 3 DOW Stocks Dividend Investors Need." Click here for instant access to this free report.

We can help you keep tabs on your companies with My Watchlist, our free, personalized stock tracking service.

Add A. Schulman to My Watchlist.

Mexican Govt. Looks to Pull the Nation's Sweet Tooth with a Junk-Food Tax

Americans may get bad press for being fatties, but our southern neighbors are giving us a run (or maybe a slow walk?) for the money.

Statistics from the Organization for Economic Co-operation and Development (OECD) say close to 70 percent of Mexicans ages 15 and older are overweight while nearly one-third of the population is obese – which is creating a slew of long-term health issues, like adult-onset diabetes. And Mexico's government is saying ¡Ya basta!, enough is enough.

Late Thursday, the nation's lower house of Congress passed a controversial measure to charge a five percent tax on some high-calorie snack foods. The Mexican Senate is expected to approve the bill, which has set off a loud debate between food companies and health activists.

Mexico's plan to wean its citizens off junk foods "appears to be the most aggressive strategy anywhere in the world in recent years to improve diets via tax disincentives," Michael Jacobson, executive director of the Center for Science in the Public Interest in Washington, told The Wall Street Journal.

But the bill's opponents say the tax would endanger millions of jobs in Mexico, all along the food and sugar production chain. In an interview with The New York Times, the director of Anprac, Mexico's $15 billion soft drink industry, said the government had not properly "evaluated the collateral damage of this inefficient tax" – which if enacted, he said, would simply drive Mexicans to make sweet drinks at home.

Mexicans have a well-established love of candies, pastries, fried foods and sugary soft drinks. And that love, notes the WSJ, has boosted revenues for beverage and snack food producers like Coca-Cola (NYSE: KO) and PepsiCo (NYSE: PEP). It's also helped Grupo Bimbo (OTC: GRBMF) , the Mexico City-based owner of America's Sara Lee brand, become one of the giants in the multinational packaged foods industry.

But even if the junk food tax is enacted in Mexico, many doubt it will seriously curb the country's sweet tooth."People will continue to sell and buy Coca-Cola for the rest of our lives," Rafael Venegas, who has a corner store in Mexico City, told the Times. "We have it in our DNA."

Posted-In: Center for Science in the Public Interest diet food and beverage Health junk food Mexico MIchael Jacobson Rafael Venegas snack food sugarNews Emerging Markets Guidance Commodities Politics Restaurants Economics Markets Trading Ideas General Best of Benzinga

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

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All across America, millions of artisans, craftsmen, small business entrepreneurs, and innovators are fueling a "third-wave industrial revolution."

I am thrilled by the success of this "Maker Movement," which celebrates the values of self-reliance, skilled labor, and creative expression that l learned as a child growing up in Nutley, N.J.

Lessons from my childhood inspired me to become the maker that I am. My mother taught me the pleasures of keeping a clean and tidy home and sewing clothes for myself, and my father showed me how to grow vegetables in our garden. One time we laid a cobblestone path, carefully lining up the stones with a string so they would be perfectly even. I took great pride in our accomplishment.

Today in the U.S., approximately 135 million adults are makers ��people who employ their creative skills in craft activities, such as making clothing, jewelry, baked goods or works of craft or art. That's 57% of the American population age 18 and up. It's a segment that is expanding rapidly in size and economic heft. Makers pump some $29 billion into the economy each year, and these figures will surely grow.

Top Value Companies To Invest In Right Now: Dollar Tree Inc.(DLTR)

Dollar Tree, Inc. operates discount variety stores in the United States and Canada. Its stores offer merchandise primarily at the fixed price of $1.00. The company operates its stores under the names of Dollar Tree, Deal$, Dollar Tree Deal$, Dollar Giant, and Dollar Bills. Its stores offer consumable merchandise, including candy and food, and health and beauty care, as well as household consumables, such as paper, plastics, household chemicals, in select stores, and frozen and refrigerated food; variety merchandise, which includes toys, durable housewares, gifts, party goods, greeting cards, softlines, and other items; and seasonal goods, such as Easter, Halloween, and Christmas merchandise. As of April 30, 2011, it operated 4,089 stores in 48 states and the District of Columbia, as well as 88 stores in Canada. The company was founded in 1986 and is based in Chesapeake, Virginia.

Advisors' Opinion:

• [By Lawrence Meyers]

  The finance sector, as mentioned, can make money in many ways. The second-highest growth sector is expected to be consumer discretionary, with a 6.2% increase. When you look at earnings from luxury brands like Tiffany & Co. (TIF), and that the hotel sector continues to do very well, it suggests that those people who are in good financial shape are spending their money. Meanwhile, dollar players like Dollar Tree (DLTR) continue to perform very well, suggesting that folks with less money are spending it on cheaper items.

Top Value Companies To Invest In Right Now: Schlumberger N.V.(SLB)

Schlumberger Limited, together with its subsidiaries, supplies technology, integrated project management, and information solutions to the oil and gas exploration and production industries worldwide. The company?s Oilfield Services segment provides exploration and production services; wireline technology that offers open-hole and cased-hole services; supplies engineering support, directional-drilling, measurement-while-drilling, and logging-while-drilling services; and testing services. This segment also offers well services; supplies well completion services and equipment; artificial lift; data and consulting services; geo services; and information solutions, such as consulting, software, information management system, and IT infrastructure services that support oil and gas industry. Its WesternGeco segment provides reservoir imaging, monitoring, and development services; and operates data processing centers and multiclient seismic library. This segment also offers variou s services include 3D and time-lapse (4D) seismic surveys to multi-component surveys for delineating prospects and reservoir management. The company?s M-I SWACO segment supplies drilling fluid systems to improve drilling performance; fluid systems and specialty tools to optimize wellbore productivity; production technology solutions to maximize production rates; and environmental solutions that manages waste volumes generated in drilling and production operations. Its Smith Oilfield segment designs, manufactures, and markets drill bits and borehole enlargement tools; and supplies drilling tools and services, tubular, completion services, and other related downhole solutions. The company?s Distribution segment markets pipes, valves, and fittings, as well as mill, safety, and other maintenance products. This segment also provides warehouse management, vendor integration, and inventory management services. Schlumberger Limited was founded in 1927 and is based in Houston, Texas.

Advisors' Opinion:

• [By Arjun Sreekumar]

  Opportunities for oilfield services firms
  Not surprisingly, Halliburton and other major energy companies view Chinese shale gas development as a significant opportunity for future growth. Many of them, including Baker Hughes (NYSE: BHI  ) , ConocoPhillips (NYSE: COP  ) , and Schlumberger (NYSE: SLB  ) , have already developed strategic relationships with Chinese firms to better evaluate the nation's shale gas potential.

• [By Lee Jackson]

  Schlumberger Ltd. (NYSE: SLB) revenue grew 8% year-over-year to $11.18 billion in the second quarter of 2013, fueled by high growth in its international segment. While the company does generate 11% of revenue in the Middle East and Asia, only a prolonged Syrian conflict is expected to dent their strong results. UBS has a $98 price target and the consensus figure is at $96. Stockholders are paid a 1.5% dividend.

Top Biotech Companies To Buy For 2014: Tupperware Corporation(TUP)

Tupperware Brands Corporation operates as a direct seller of various products across a range of brands and categories through an independent sales force. The company engages in the manufacture and sale of kitchen and home products, and beauty and personal care products. It offers preparation, storage, and serving solutions for the kitchen and home, as well as kitchen cookware and tools, children?s educational toys, microwave products, and gifts under the Tupperware brand name primarily in Europe, Africa, the Middle East, the Asia Pacific, and North America. The company provides beauty and personal care products, which include skin care products, cosmetics, bath and body care, toiletries, fragrances, nutritional products, apparel, and related products principally in Mexico, South Africa, the Philippines, Australia, and Uruguay. It offers beauty and personal care products under the Armand Dupree, Avroy Shlain, BeautiControl, Fuller, NaturCare, Nutrimetics, Nuvo, and Swissgar de brand names. The company sells its Tupperware products directly to distributors, directors, managers, and dealers; and beauty products primarily through consultants and directors. As of December 26, 2009, the Tupperware distribution system had approximately 1,800 distributors, 61,300 managers, and 1.3 million dealers; and the sales force representing the Beauty businesses approximately 1.1 million. The company was formerly known as Tupperware Corporation and changed its name to Tupperware Brands Corporation in December 2005. The company was founded in 1996 and is headquartered in Orlando, Florida.

Advisors' Opinion:

• [By Dan Caplinger]

  Where growth will come from
  One area that Newell Rubbermaid still has to tap fully is emerging markets. The company has done a good job of expanding overseas, with 17% annual growth in Latin America. But with barely a quarter of its sales coming from outside the U.S. and Canada, the company has a lot further to go. Storage rival Tupperware (NYSE: TUP  ) gets fully 60% of its total revenue from emerging markets, and it too has seen impressive gains in South America as well as the Asia-Pacific region.

• [By Arie Goren]

  After running this screen on May 21, 2013, before the markets' open, I discovered the following eight stocks: Sunoco Logistics Partners LP (SXL), Leggett & Platt Inc (LEG), Copa Holdings SA (CPA), RPC Inc. (RES), Tupperware Brands Corp. (TUP), Herbalife Ltd. (HLF), John Wiley & Sons Inc. (JW.A) and C.H. Robinson Worldwide Inc. (CHRW).

• [By Brian Pacampara]

  Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, household products company Tupperware Brands (NYSE: TUP  ) has earned a coveted five-star ranking.

• [By John Udovich]

  Everyone is familiar with�the Tupperware brand from�consumer products stock Tupperware Brands Corporation (NYSE: TUP) and you are probably familiar with the brands�of mid cap stock Jarden Corp (NYSE: JAH) along with small cap stocks Libbey Inc (NYSEMKT: LBY) and Lifetime Brands Inc (NASDAQ: LCUT); but what about the stocks themselves? Chances are, their brands or products are right under your nose at home and you probably don�� know anything about the mid cap or small cap stock behind them.

Top Value Companies To Invest In Right Now: Caterpillar Inc.(CAT)

Caterpillar Inc. manufactures and sells construction and mining equipment, diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives worldwide. It operates through three lines of businesses: Machinery, Engines, and Financial Products. The Machinery business offers construction, mining, and forestry machinery, including track and wheel tractors, track and wheel loaders, pipelayers, motor graders, wheel tractor-scrapers, track and wheel excavators, backhoe loaders, log skidders, log loaders, off-highway trucks, articulated trucks, paving products, skid steer loaders, underground mining equipment, tunnel boring equipment, and related parts. It also manufactures diesel-electric locomotives; and manufactures and services rail-related products and logistics services for other companies. The Engines business provides diesel, heavy fuel, and natural gas reciprocating engines for Caterpillar machinery, electric power generation systems, marine, petrol eum, construction, industrial, agricultural, and other applications. It offers industrial turbines and turbine-related services for oil and gas, and power generation applications. This business also remanufactures Caterpillar engines, machines, and engine components; and offers remanufacturing services for other companies. The Financial Products business provides retail and wholesale financing alternatives for Caterpillar machinery and engines, solar gas turbines, and other equipment and marine vessels, as well as offers loans and various forms of insurance to customers and dealers. It also offers financing for vehicles, power generation facilities, and marine vessels. The company markets its products directly, as well as through its distribution centers, dealers, and distributors. It was formerly known as Caterpillar Tractor Co. and changed its name to Caterpillar Inc. in 1986. Caterpillar Inc. was founded in 1925 and is headquartered in Peoria, Illinois.

Advisors' Opinion:

• [By WALLSTCHEATSHEET.COM]

  Caterpillar provides essential industrial products that fuel infrastructure construction and mining projects in growing countries around the world. The stock has not made much progress in recent years and is now trading near the low end of a range that extends back a few years. Earnings and revenue figures have sent mixed signals to investors who have been pleased with recent earnings reports, regardless. Relative to its peers and sector, Caterpillar has trailed in year-to-date performance by a significant margin. WAIT AND SEE what Caterpillar does this coming quarter.

• [By Dan Caplinger]

  6. Caterpillar (NYSE: CAT  ) posted much uglier numbers yesterday, with a 16% drop in revenue driving a much larger 43% decline in earnings per share. Cutting its full-year earnings guidance by $0.50 to $6.50 took its toll on the stock, and further weakness today brought Caterpillar's post-earnings share-price drop to 4%. As long as commodity prices remain subdued and China doesn't heat up with greater levels of construction activity, Caterpillar will likely remain down.

Earnings roundup: Coke fizzy, Schwab soars

Charles Schwab stock soared in Tuesday afternoon trading after announcing that its third-quarter net income climbed 19%.

Trading and interest revenue also rose, beating analysts' forecasts.

Schwab's active broker accounts grew 3% from a year ago, to nine million. Revenue rose 14% to $1.37 billion from $1.2 billion. Wall Street was looking for $1.34 billion in revenue.

Shares climbed 5% on the news, with the stock at its highest level in more than five years.

TUESDAY STOCKS: How markets performed

Also up, by lesser amounts, were Dow Jones industrial average members Coca Cola and Johnson & Johnson.

Banking giant Citigroup missed analysts estimates, notching earnings of $1.02 a share, under the $1.04 estimate, on revenue of $17.9 billion.

Profit was up at Coke as the world's biggest beverage maker managed to sell more of its drinks despite choppy economic conditions.

The maker of Sprite, Powerade and Vitaminwater in addition to its namesake brand, said global sales volume edged up 2%, helped by its performance in countries such as China, India and Russia.

Still, the Atlanta company conceded that it was facing an economic slowdown in many parts of the world including Mexico, where the government is also considering a tax on sugary soft drinks.

In a conference call with analysts, CEO Muhtar Kent pushed back at the suggestion that the company's days of growth were coming to an end. He noted that the company is emphasizing affordability and smaller packages to "keep the drinkers base growing" in developing markets.

The company said its namesake brand saw volume growth of 22% in India. In China, soft drink volume rose 8%.

Johnson & Johnson benefited from a big jump in prescription drug sales and continued recovery of its consumer health business. Those successes helped the health care giant overcome a new problem, slumping sales of its medical devices.

That was mainly due to pricing pressure in the U.S. that forced J&J to ! cut prices for devices including diabetes testing products and spine and hip replacement parts, and trouble integrating part of the product line and sales force of orthopedic products maker Synthes, bought last year for $20 billion in J&J's biggest acquisition ever.

Stock of the New Brunswick, N.J.-based company is near its 52-week high of $94.42.

J&J said Tuesday that net income was $2.98 billion. Excluding one-time charges, it earned $1.36 per share, 4 cents better than analysts expected.

"We are still seeing (health care) utilization rates that are essentially flat year over year," Chief Financial Officer Dominic Caruso told analysts on a conference call.

Contributing: The Associated Press

Can The Bank Of America Corp. Keep The Bullish Trend?

Last year, the Bank of America Corporation (BAC) was proclaimed the best performing stock as it rose to 109.5% in the Dow Jones Industrial Average. It is only fair that critics and analysts say that Bank of America will continue this trend and is therefore one of the must own stock for this year. It is most likely about momentum, which has a high probability of keeping its pace.

Third quarter earnings will soon be out and this will give investors a helpful insight on whether the Bank of America Corporation as well as the other businesses are financially healthy or not. Bank of America has a market cap of a little over $150 billion and the financial institution is expected to report at least $611 million in revenue with 71 cents of earnings per share compared to 61 cents EPS on $624 million in revenue last year. This indicates that the Bank of America is still in an upward trend, specifically since it has gained almost 40% since last year.

Right now, the company is valued at over $149 billion with shares trading almost $14.00 for every share. Shares currently cost around 15.38x, which makes them a little but expensive compared to the industry standard of 13.09x forecasted price per earnings ratio. Income investors will receive pay $0.04 for every share each year in dividends. This gives a yield of about 0.30%.

Even though the forecasts about Bank of America's third quarter earnings seem to look pretty good for the company, they still intend to cut costs as they will reduce their workers particularly in the mortgage area. Despite the fact that there will soon be job cuts in Bank of America, the market is still in favor with them. Both JPMorgan Chase (JPM) and Well Fargo (WFC) have publicized their earnings, and the bottom lines do not appear positive for future bank investors. The lack of mortgage activity has affected the two banks. It is anticipated that Bank of America will also experience the decrease in this banking section, but they may just surprise the investors - in a good way! . This is because they have been working hard to boost their market share, which they have announced at a press conference. According to BAC, their presence has increased 5.2% (4.1% last year).

Things are indeed looking good for Bank of America. After they have announced earlier this year that they had obtained the permission to buy back stock - something that they had not done since the financial crisis in 2008 - they redeemed the stock just two months later. The buyback was intended to be a part of their much broader corporate strategy that gives focus on net interest margin management. The plan was to refinance their expensive liabilities and pay the non-cumulative dividend yield. Stock buybacks are anticipated to go on a fast track by next year and CEO Brian Moynihan believes that stock buybacks help them drive value for the shareholders of Bank.

Investors who intend to trade with the Bank of America stock must be able to accept that there is high volatility in the market for this specific stock. Such acceptance is key to achieve greater returns. Even though the market remains to be volatile, the sales of US structured notes connected to Bank of America have increased. This happened as the issuance of securities tied to a single stock soars.

For the investors who are still in doubt about Bank of America, here is one reason to buy Bank of America stock right now: its deposit base. BAC has more than one trillion of deposits, including deposits from consumers and businesses.

Despite many talks about how most of banks, including Bank of America, have become complex over the past few years, much of their core function still relies on deposits. Breaking down Bank of America's deposits, there is about $720 billion of deposits, which are interest-bearing, meaning that Bank pays customers as they keep the amount that they have deposited in their account. Currently, Bank of America pays 0.2% on the mentioned amount of deposits. On top of that, there are almost $360 billion of non-inter! est-beari! ng deposits. Total the numbers up and it is easy to see that BAC has a huge advantage in terms of their earnings profits.

One thing is for sure right now: the sentiment of the investors as well as the financial analysts toward Bank of America is still bullish. Based on tweets and news, Bank of America will still see great returns in the stock market.

Source: Can The Bank Of America Corp. Keep The Bullish Trend?

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. (More...)

On the Job: Maternity leave can be good for mom…

Having a baby is always an adjustment for new parents, but one strategic communications company found it was going to go through some adjustments of its own when three key employees on its 16-member staff turned up pregnant at nearly the same time.

After seven months of "adjusting, juggling and stretching" to accommodate three maternity leaves, "the truth is it wasn't bad after all," writes Jon Newman, co-founder of The Hodges Partnership, in a blog post titled OOOhhh Baby…(Our three-peat feat).

STORY: Yahoo CEO ignites maternity debate
COLUMN: Moms fret about work, pregnancy

"In fact, it was an extremely good thing, not only for the moms, but for all of us at Hodges," he wrote.

The change in routine was good for the company because everyone pitched in, learned to stretch their capabilities and skills and be more flexible with their work, Newman says in the post.

One of the moms who was pregnant and now has a 7-month-old baby is Stacey Brucia, an account manager. She says she was telecommuting from home when she heard about the second employee announcing her pregnancy.

"I'm glad no one could see my face because I knew then I was also pregnant," she says. "I knew then it was going to be a stretch (for the company) because it was going to be a revolving door of maternity leaves."

However, Brucia says she wasn't overly concerned because Hodges already had been supportive when she was the first woman in the company to take maternity leave four years previously when her first child was born.

Still, companies don't always have supportive atmospheres. Women often debate about when they should reveal their pregnancies and what will happen to their jobs while they are on maternity leave.

Cheree Aspelin, who writes the Maternity Leave Coach blog, says many women try to hide their pregnancies. She saw one woman wearing a heavy overcoat to work in July in Houston.

Baby booties in your future can be a blessing for both you and your company.(Photo: Getty Images)

"Sweat was just pouring off her," Aspelin says. "She's trying to hide her pregnancy, but now people just think she's a weirdo."

Aspelin, who works for a large United Kingdom-based oil and gas company, says she has taken to advising women about maternity leaves because she believes many are not thinking clearly about how they'll handle their jobs before and after their babies arrive.

"My U.K. colleagues talk more freely about their pregnancies, and women here seem to agonize over it," she says. "I don't agree with the advice that women should keep it a secret. It can all backfire."

Women can give managers and colleagues plenty of time to plan for a maternity leave if they reveal pregnancies early, Aspelin says. One benefit is that they also can provide support if the pregnancy is difficult.

Women often struggle with other issues such as how much time to take off and whether they need to keep in contact with colleagues the workplace while they're gone.

Bracia says she took four months off for each pregnancy, using vacation time, paid leave and unpaid leave. She thinks things ran pretty smoothly, and she didn't have much contact with her office during that time.

“I don't agree with the advice that women should keep it a secret. It can all backfire.”

— Cheree Aspelin, Maternity Leave Coach blog

When Aspelin went on maternity leave, she says she went through a roller coaster of emotions, wanting to return to a career that she loves but also wanting "to be seen as a good mom and stay home."

That's why Aspelin advises other pregnant working women to share their thoughts and fears with other women who have taken leave, to find a strategy that will work for them.

Wh! en the ti! me comes to negotiate your maternity leave, experts often advise you to be familiar with company policy but also check in with others who have taken parental leave to find out their arrangements.

If you're asking for more time off than others, want to arrange a flexible schedule or hope to work from home more often, don't frame it as special accommodation just for you, but rather pitch it as a chance to experiment and try something new.

As Hodges found out, maternity leaves often can lead to rewarding outcomes for the companies for which the moms work.

"We are a better place because of these new members of the THP family, better because there are three new members of our extended family," Newman wrote, "but also better because of what we've learned and accomplished as a result of them coming into our world."

Anita Bruzzese is author of 45 Things You Do That Drive Your Boss Crazy ... and How to Avoid Them, www.45things.com. Twitter: @AnitaBruzzese.

China’s Stocks Rise, Completing Biggest Weekly Gain in Month

China's stocks rose, sending the benchmark index to the steepest weekly gain in a month, after the Shanghai Securities News reported the city may reform state-owned enterprises and auto sales exceeded estimates last month.

Shanghai No. 1 Pharmacy Co. (600833) rallied 10 percent on speculation SOE reform would improve profitability. SAIC Motor Corp., China's largest carmaker, climbed to a four-month high. Xinjiang Goldwind Science & Technology Co., the biggest wind-turbine maker, also jumped by the daily limit to lead gains for industrial stocks on prospects for higher shipments.

The Shanghai Composite Index (SHCOMP) rose 1.7 percent to 2,228.15 at the close, capping a 2.5 percent gain this week. The Chinese government is under pressure to reform state firms, which the World Bank has said might be a long-term drag on economic growth. Stocks in China, the largest foreign owner of U.S. Treasuries, also joined a rally for global markets on optimism U.S. lawmakers will lift the debt limit and avoid a default.

"SOE reform is another major investment theme for the market now as it will improve their profitability by giving employees stock incentives and introducing outside investors," said Wang Zheng, the Shanghai-based chief investment officer at Jingxi Investment Management Co., which oversees $120 million. "The temporary resolution to the U.S. debt ceiling issue has boosted the risk appetite for equities globally."

The CSI 300 Index gained 1.6 percent to 2,468.51. The Hang Seng China Enterprises Index (HSCEI) advanced 1.3 percent. The Shanghai Composite has climbed 14 percent since June 27 as companies based in the city rose on speculation they will benefit from deregulation in the Shanghai free-trade zone.

SOE Reform

Trading volumes on the Shanghai index were 6.8 percent higher than the 30-day average today, according to data compiled Bloomberg. It trades at 8.8 times projected earnings for the next 12 months, compared with the five-year average of 12.6 times, Bloomberg data showed.

Shanghai No. 1 Pharmacy surged by the daily limit to 9.31 yuan. Shanghai Maling Aquarius Co., a food manufacturer, also jumped 10 percent to 11.51 yuan. Shanghai Shenda Co. (600626), a maker of textile products, climbed 10 percent to 6.12 yuan.

The Shanghai government's reform plans will focus on decentralizing power, offering stock option incentives and improving performance evaluation, the Shanghai Securities News reported today, without saying where it got the information.

More than 25 percent of government-run enterprises are unprofitable and productivity growth has trailed non-state firms by about 66 percent the past three decades, the World Bank said in a February report. State businesses may become a long-term drag on economic growth, the Washington-based lender said.

Debt Talks

SAIC rose 3.9 percent to 14.31 yuan. The automaker said sales increased 16 percent last month. Chongqing Changan Automobile Co. (000625), the Chinese partner of Ford Motor Co. and Mazda Motor Corp., surged 10 percent to 11.79 yuan.

China's passenger-vehicle sales increased 21 percent to 1.59 million units in September, the China Association of Automobile Manufacturers said. That compared with the 1.5 million-unit median estimate of five analysts surveyed by Bloomberg.

The Bloomberg China-US Equity Index, the measure of the most-traded U.S.-listed Chinese companies, added 2 percent in New York yesterday.

Discussions between Republican lawmakers and President Barack Obama will continue as they try to seek a "path forward" on the debt ceiling, according to Republican House Majority Leader Eric Cantor. Stocks and Treasury bills jumped in the U.S. trading day after the White House endorsed raising the limit until Nov. 22 without policy conditions attached.

"The market doesn't like uncertainties," Yi Gang, deputy governor of China's central bank, said in Washington yesterday. "They watch this drama very closely."

Trade Data

Xinjiang Goldwind Science led a rally for industrial shares, surging 10 percent to 8.57 yuan.

"The market is speculating the company will have higher shipments in the second half," Demi Zhu, an analyst at Bloomberg New Energy Finance, said by phone yesterday.

Bank of Ningbo Co. paced gains for lenders, rising 2.6 percent to 9.14 yuan. The lender won approval from the China Securities Regulatory Commission to set up a fund management firm, according to a statement to the stock exchange.

The customs office is due to release September data on foreign trade tomorrow. Exports probably increased 5.5 percent from a year earlier, according to the median estimate of 43 economists in a Bloomberg survey, compared with 7.2 percent growth in August. The statistics bureau will release data on inflation on Oct. 14 and third-quarter economic growth Oct. 18.

China's economy may grow about 7 percent for the "foreseeable future," as policy makers rein in the housing "bubble" and local government debt, Yi said in Washington.

The world's second-largest economy has picked up in the third quarter and may expand about 7.5 percent or 7.6 percent this year, he said during a panel discussion yesterday in Washington. The economy grew 7.7 percent last year, the slowest since 1999, and compared with an average growth rate of 10.3 percent over the last decade.