Will Nokia's Earnings Bounce Back This Week?

On Thursday, Nokia (NYSE: NOK  ) will release its latest quarterly results. The key to making smart investment decisions on stocks reporting earnings is to anticipate how they'll do before they announce results, leaving you fully prepared to respond quickly to whatever inevitable surprises arise.

Nokia was once the dominant mobile phone producer in the world, but lately, the rise of smartphones has left the company struggling to keep up in a rapidly changing industry. Let's take an early look at what's been happening with Nokia over the past quarter and what we're likely to see in its quarterly report.

Stats on Nokia

Analyst EPS Estimate	($0.05)
Year-Ago EPS	($0.10)
Revenue Estimate	$8.65 billion
Change From Year-Ago Revenue	(10.3%)
Earnings Beats in Past 4 Quarters	3

Source: Yahoo! Finance.

Will Nokia stay connected this quarter?
Analysts have actually gotten quite a bit more optimistic about Nokia in recent months. They've boosted their earnings calls for the just-ended quarter by $0.03 per share, and they've reversed initial calls for a full-year 2013 loss, instead projecting a $0.06-per-share profit. Yet the stock hasn't seen any benefit from that optimism, as shares have dropped 18% since early January.

Nokia has hitched its future success to the fate of Microsoft's (NASDAQ: MSFT  ) Windows 8 mobile operating system. Earlier this month, an AdDuplex report gave Nokia a dominant 80% market share of the global Windows 8 smartphone market. With its Lumia 920 model having become the most popular Windows 8 phone, Nokia has found a way to join the high end of the mobile market.

One thing that U.S. investors need to remember is that the competitive picture abroad is very different from what it is domestically. Apple (NASDAQ: AAPL  ) may dominate the U.S. market, but in India, South Africa, Argentina, and several eastern European markets, Windows Phone shipments are actually higher than iPhone volumes, thanks in large part to Nokia's strong brand loyalty both close to its Finnish roots and in other key areas.

Admittedly, Apple has largely ceded the Indian market to its rivals, with CEO Tim Cook arguing that the company has greater potential in China and other key countries. But on that score, Nokia and Microsoft successfully made a deal with China Mobile to get itself into the Chinese market, and Nokia has built even cheaper smartphones aimed at Africa and other emerging markets where income levels prevent more expensive models from being practical.

In Nokia's earnings report, watch for news about whether rumors of a solar-powered Lumia model are in fact true. If so, it could give Nokia a key advantage that could help re-energize the company's efforts and give consumers a new reason to buy into the Nokia turnaround story.

Nokia's been struggling in a world of Apple and Android smartphone dominance. However, the company has banked its future on its next generation of Windows smartphones. Motley Fool analyst Charly Travers has created a new premium report that digs into both the opportunities and risks facing Nokia to help investors decide if the company is a buy or sell. To get started, simply click here now.

Click here to add Nokia to My Watchlist, which can find all of our Foolish analysis on it and all your other stocks.

3 Dividend Stocks for Next Quarter

Rocky markets can take a toll on even the most stalwart investor, but selling dividend-paying companies into weakness isn't your best bet. In the past, dividend investors have been much better served by taking a long view that allows dividends to offset Wall Street's whims and whispers.

That could be particularly true for these three dividend-paying health-care companies: GlaxoSmithKline (NYSE: GSK  ) , Merck (NYSE: MRK  ) , and Quest Diagnostics (NYSE: DGX  ) . They not only pay healthy dividend yields that can blunt the pain of a sell-off, but they're also strong performers during the coming quarter. That suggests investors may not want to sell them, and investors who have been considering them may want to step in and buy them.

Source: YCharts.

The strongest dividend
GlaxoSmithKline's product lineup includes the most successful asthma medication on the market. Advair is not only among the mostly widely used drugs for treating asthma, but it's also a major moneymaker. The drug posted global sales of more than $8 billion last year, but it's not the only asthma drug in GlaxoSmithKline's catalog. GlaxoSmithKline also markets blockbusters Flovent and Ventolin. Those three drugs notched nearly $12 billion in sales from respiratory therapies last year. That market-leading position should be stronger this year given the FDA approved two more potential respiratory blockbusters last year. Those two drugs, Breo Ellipta and Anoro Ellipta, are used to treat chronic obstructive pulmonary disease and analysts project the two could eventually generate a combined $2.7 billion in peak annual sales.

Although important, asthma and COPD drugs aren't the only products propping up the company's sales. Glaxo delivered more than $42 billion in revenue last year and nearly $9 billion in profit after taxes, thanks to drugs designed to treat a variety of diseases including cancer and cardiovascular disease. The company also has an $8 billion consumer health-care business. Those are all good reasons to take a chance on its shares, but for those requiring another reason to step in during a rough-and-tumble tape, GlaxoSmithKline's shares have managed to climb in eight of the past 10 second quarters, producing an average 4.8% return. Importantly, GlaxoSmithKline's forward dividend yield is 5.7%, which means that even if shares do fall next quarter, its dividend will help ease any pain.

Quickly recovering
The patent cliff took a toll on Merck's top line when its top-selling asthma drug Singulair lost patent exclusivity in 2012. Merck also lost protection on Temodar and Maxalt last year, threatening another $1.5 billion in sales. However, it's not all bleak for Merck given the company still expects sales of $42 billion to $43 billion and earnings of $3.35 to $3.53 this year. While that's down from the $44 billion and $3.49 per share recorded last year, Merck's future may brighten thanks to promising cancer drug MK-3475. Strong performance in trials as a melanoma treatment and FDA breakthrough status has investors hoping for a quick and easy path to approval. The drug may also offer opportunity as a therapy for non-small cell lung cancer. In addition to MK-3475, Merck also has late-stage studies under way in ovarian cancer, diabetes, psoriasis, and Alzheimer's disease.

Those opportunities could put Merck back on a path to sales and profit growth, but for investors needing an extra push toward owning shares, it's worth noting that Merck has also gained in eight of the past 10 second quarters, posting a nearly identical 4.8% average return to GlaxoSmithKline. It's even less correlated to the S&P 500 than GlaxoSmithKline at 0.48 for the period, which means that even if markets fall, its shares may not. If Merck's shares do drop, the company pays a 3.2% forward dividend yield that may help offset any weakness.

Best Sliver Companies To Buy For 2014

Greater volatility, but strong cash flow
Quest Diagnostics is a Goliath in lab testing, operating 2,100 testing centers nationwide. The company, which generated $1.7 billion in fourth-quarter sales, hopes to expand its diagnostics business into personalized medicine. Last year, Quest launched a BRCA gene test for breast cancer patients in a bid to win business from Myriad Genetics.

Additionally, Quest is in the midst of a restructuring that it hopes will save it $500 million in annual costs. If so, the company's solid cash stream, which helped Quest repurchase $1 billion in shares last year, should continue to reward investors. It is guiding investors to expect $900 million in cash from operations and $3.90 to $4.10 in earnings per share this year. That cash flow and solid earnings outlook should provide investors with a healthy dose of stability, but for those wondering if headwinds will be too strong this spring, shares have also been solid performers in the second quarter. Over the last 10 years, shares are up eight times, producing an average 4.6% return. Investors should also know that Quest does have the highest standard deviation of these three companies for the period, which means it may be more volatile, and the highest correlation to the market of the three, which means it's most likely to follow the market's path. Regardless, its 2.4% forward dividend yield appears rock-solid given its cash flow.

Fool-worthy final thoughts
Investors shouldn't be jumping in an out of stocks based on emotion. Instead, taking a calculated approach can produce impressive returns over time, especially for dividend-paying companies. GlaxoSmithKline and Merck aren't free of business challenges, but they're both large drug developers with a proven history of creating innovative and dividend-friendly therapies. If big pharma isn't on your dividend wishlist, lab testing giant Quest may fit the bill given a larger, longer living population is likely to increase rather than decrease testing demand over the coming decade.

Here are nine more dividend companies you ought to know about
One of the dirty secrets that few finance professionals will openly admit is the fact that dividend stocks as a group handily outperform their non-dividend-paying brethren. The reasons for this are too numerous to list here, but you can rest assured that it's true. However, knowing this is only half the battle. The other half is identifying which dividend stocks in particular are the best. With this in mind, our top analysts put together a free list of nine high-yielding stocks that should be in every income investor's portfolio. To learn the identity of these stocks instantly and for free, all you have to do is click here now.

BBRY: BlackBerry Stock Shows Faint Signs of Life, But Don’t Bite

Popular Posts: The Top 10 S&P 500 Dividend Stocks for MarchMarijuana Stocks: A Case of Too Far, Too FastIs JCPenney This Year’s Best Buy? Recent Posts: BBRY: BlackBerry Stock Shows Faint Signs of Life, But Don’t Bite Dividend Stocks – Bank Dividends Set to Rise After Stress Test CAG Stock — ConAgra Earnings Rise, but Margin Weakness Haunts Shares View All Posts

BlackBerry (BBRY) is rapidly evaporating as a company, but apparently that doesn’t mean BBRY stock can’t whip up a rally or two.

Indeed, BBRY stock jumped today after BlackBerry swung to a loss that was much narrower than Wall Street was expecting.

This is what it has come to with the has-been smartphone maker. BBRY is deep in the red and quarterly revenue dropped below $1 billion for the first time since 2007.

Geez … was it really just four years ago that BlackBerry  recorded record-high quarterly revenue of $5.56 billion?

Sadly, yes. But hey, BBRY is still alive, independent and not bleeding out … at least not at quite the rate the market and analysts were projecting. That counts as a reason to celebrate when it comes to BBRY stock, even if it’s just for a day.

Make no mistake, though: BlackBerry stock is a trade. It’s not a trend. It’s not an investment. It’s a trade.

BBRY is still in big trouble, and the endgame is anything but clear.

BlackBerry Earnings

BlackBerry reported a fourth-quarter net loss of $423 million, or 80 cents per share of BBRY stock. In the year-ago period, BlackBerry still was profitable, generating income of $98 million, or 19 cents a share.

Here’s the good news, at least as BBRY stock is concerned: After excluding restructuring charges and other items (as analysts do), BBRY posted a net loss of just 8 cents a share when the Street was modeling a loss of 55 cents.

That’s a big beat.

The better-than-expected bottom line took the market’s mind off the fact that revenue missed estimates by a significant margin. Sales fell to $976 million from $2.68 billion a year ago. Analysts on average had project revenue of $1.11 billion, according to Thomson Reuters.

This is a terrible quarter by any measure, but expectations are everything on Wall Street, and an earnings beat usually helps a stock jump.

Too bad it will take more than a surprise quarter or two to deliver sustained upside in BBRY stock.

BBRY Can’t Cut Its Way to Growth

It’s one thing to spruce up the bottom line by cutting costs. It’s quite another to grow the company by creating demand for BlackBerry smartphones — perhaps an impossible task now that Samsung (SSNLF) and Apple (AAPL) dominate the market.

A few years ago, BlackBerry had 20% of the global smartphone market.

Today, it holds less than 1%.

An adjusted net loss of 8 cents isn’t that far from breakeven, and some analysts think expense reduction can lead BBRY to reach that line by the end of next year — but if BBRY is to deliver top-line growth, it’s probably not going to come from sales of smartphones.

Large screens are in, which means keyboards are out, especially now that apps like Swype and SwiftKey make typing on a touchscreen fast and accurate.

Sure, it’s possible BBRY could have a hit with one of its new keyboard smartphone designs over the next 18 months or so. It’s just unlikely. Heck, HTC boasts what is widely considered to be the best Android smartphone, but it can’t get any traction in a market flooded by Samsung. The BlackBerry 10 launched last year and it was a dud.

So what hope does BBRY have?

BlackBerry is wisely focusing on its services business, which makes mobile devices secure from hackers for governments and corporate clients. Security has been the closest thing to a moat for BBRY throughout its existence. Selling software and services (like BlackBerry Messenger) is a stretch to get BBRY back on its feet, but it has no other choice.

Bottom Line

The latest quarterly results show BBRY to be in better financial shape than a it was a few months ago, but profitability and growth are still notional at best.

Yes, BlackBerry stock is up more than 30% for the year-to-date, but it has done so with tremendous volatility. That adds another layer of risk for anyone initiating a position in BBRY stock on the latest news.

I’ve said it before, and I’ll say it again: Most turnarounds don’t turn. If BlackBerry does return to growth and profitability, you can always start a position then. Yes, shares will be much more expensive at that point — but not when adjusted for risk.

For now, BBRY stock is best left to the fast money.

As of this writing, Dan Burrows did not hold a position in any of the aforementioned securities.

Gurus Dropped This Stock, Should You Pick It Up?

To explore and produce, a great investment is required in tools, and one of the leading equipment suppliers is Schlumberger (SLB). A key to remaining on top of the industry is innovation, and of that the company has a whole load. Throughout 2014 alone, the firm has introduced a microseismic surface acquisition system, a new fracturing technique for unconventional reserves, launched a degradable alloy technology to improve well productivity, a multilayer bed boundary detection service for clastic and carbonate fields, and a rotary steerable system that increases directional control and drilling efficiency. These product introductions have been done during the first quarter of 2014, making a strong statement about the company's research and development pipeline. Gurus, however, mostly dropped the stock during the end of 2013. Let us see whether you can take advantage of the dumping and take a large position with long-term prospects.

Unequal growth

Schlumberger reported for 2013 an increase of over $4 billion in revenue year-over-over, with diluted earnings-per-share of $4.75 versus $4.01 in 2012. The growth has been pushed by onshore production in the Middle East and Asia, Europe and Asia, and Latin America area. The North America area, however, saw small decline in onshore production offset by a greater increase in offshore activities.

Management explained that land businesses in North America continued to experience pricing weakness in drilling, stimulation and wireline services, although the effect of this was partially offset by increased service intensity, improved efficiency, market share gains and new technology penetration.

Another important note concerning Schlumberger's overall performance is the write-offs issued related to activities in Brazil. These have generated an unequal opportunity to secure profits in the short-term. In short, the company has understated its profits. The upside to this is the fast increase of earnings per share the firm is experiencing. However, given the 13.25% annual returns since 2004 shareholders received, the question that remains is whether such figures will last long enough to take a strong position.

Long-Term Growth

The advantage gurus hold over regular investors is cash leverage. That alone allows gurus to make a profit in the short-term, even if the change in stock price is minimum. Hence, a regular investor has to think more when looking for an appropriate investment. And if dedication is part-time, then a long-term investment is all the more intelligent as it will allow her to be comfortable. A tip is given by the increasing positions during all of 2013 by the two largest gurus holding a position in Schlumberger.

The company is expected to benefit from current trends in oilfield services in North America, as drilling moves from onshore to offshore. Also, the outlook for 2014 remains largely bullish on an improved global economic scenario. Hence, higher demand for its products is expected to come primarily from the Mexican Gulf. An additional and greater push is expected by the remaining geographies as demand for oil continues to rise worldwide.

The greatest downside to Schlumberger is its exposure to the North America region. Here, activities have lagged while the production at other geographies continue to rise. So, the steady purchases by gurus are looking again for short-term profits. The reasoning behind the statement is that as long as the company does not reduce exposure to North America, profits in the long run will be scarce to none.

Moreover, Schlumberger cannot expect to reverse the trend through the introduction of new products that improve current techniques. Those products must revolutionize the industry if the trend wants to be reversed. Hence, the risk associated with the stock is evidenced on the carried 18% discount to the industry average, while trading at 18.7 times its trailing earnings.

Disclosure: Vanina Egea holds no position in any of the mentioned stocks.

About the author:Vanina EgeaA fundamental analyst at Lone Tree Analytics

Visit Vanina Egea's Website

Currently 5.00/512345 Rating: 5.0/5 (1 vote)

Voters:

Subscribe via Email Subscribe RSS Comments Please leave your comment:
More GuruFocus Links

Latest Guru Picks	Value Strategies
Warren Buffett Portfolio	Ben Graham Net-Net
Real Time Picks	Buffett-Munger Screener
Aggregated Portfolio	Undervalued Predictable
ETFs, Options	Low P/S Companies
Insider Trends	10-Year Financials
52-Week Lows	Interactive Charts
Model Portfolios	DCF Calculator
RSS Feed	Monthly Newsletters
The All-In-One Screener	Portfolio Tracking Tool

MORE GURUFOCUS LINKS

Latest Guru Picks	Value Strategies
Warren Buffett Portfolio	Ben Graham Net-Net
Real Time Picks	Buffett-Munger Screener
Aggregated Portfolio	Undervalued Predictable
ETFs, Options	Low P/S Companies
Insider Trends	10-Year Financials
52-Week Lows	Interactive Charts
Model Portfolios	DCF Calculator
RSS Feed	Monthly Newsletters
The All-In-One Screener	Portfolio Tracking Tool

SLB STOCK PRICE CHART 96.49 (1y: +29%) $(function(){var seriesOptions=[],yAxisOptions=[],name='SLB',display='';Highcharts.setOptions({global:{useUTC:true}});var d=new Date();$current_day=d.getDay();if($current_day==5||$current_day==0||$current_day==6){day=4;}else{day=7;} seriesOptions[0]={id:name,animation:false,color:'#4572A7',lineWidth:1,name:name.toUpperCase()+' stock price',threshold:null,data:[[1364446800000,74.89],[1364792400000,74.02],[1364878800000,74.81],[1364965200000,74.01],[1365051600000,73.94],[1365138000000,74.35],[1365397200000,74.96],[1365483600000,75.43],[1365570000000,76.99],[1365656400000,77.14],[1365742800000,75.66],[1366002000000,71.89],[1366088400000,73.29],[1366174800000,70.97],[1366261200000,71],[1366347600000,69.95],[1366606800000,71.23],[1366693200000,71.94],[1366779600000,73.17],[1366866000000,73.44],[1366952400000,73.34],[1367211600000,74.03],[1367298000000,74.43],[1367384400000,73.79],[1367470800000,74.25],[1367557200000,75.72],[1367816400000,76.16],[1367902800000,76.89],[1367989200000,77.59],[1368075600000,77.25],[1368162000000,76.82],[1368421200000,77.04],[1368507600000,76.86],[1368594000000,75.68],[1368680400000,75.27],[1368766800000,75.74],[1369026000000,77.42],[1369112400000,77.08],[1369198800000,75.58],[1369285200000,75.38],[1369371600000,74.66],[1369717200000,75.4],[1369803600000,74.98],[1369890000000,74.81],[1369976400000,73.03],[1370235600000,73.25],[1370322000000,72.85],[1370408400000,72.18],[1370494800000,73.3],[1370581200000,73.93],[1370840400000,73.3],[1370926800000,71.44],[1371013200000,70.95],[1371099600000,72.46],[1371186000000,71.6],[1371445200000,73.1],[1371531600000,74.16],[1371618000000,73.4],[1371704400000,72.14],[1371790800000,72.83],[1372050000000,71.24],[1372136400000,72.09],[1372222800000,71.81],[1372309200000,71.93],[1372395600000,71.66],[1372654800000,72.78],[1372741200000,72.61],[1372827600000,73.01],[1373000400000,74.09],[1373259600000,74.79],[1373346000000,76.54],[1373432400000,76.18],[1373518800000,76.63],[1373605200000,76.84],[1373864400000,77.02],[1373950800000,76.52],[1374037200000,77.61],[1374123600000,78.48],[1374210000000,82.74],[1374469200000,83.81],[1374555600000,83.57],[1374642000000,82.85],[1374728400000,82.57],[1374814800000,81.91],[1375074000000,81.15],[1375160400000,81.43],[1375246800000,81.33],[137! 5333200000,83.55],[1375419600000,82.89],[1375678800000,82.89],[1375765200000,82.22],[1375851600000,81.05],[1375938000000,81.23],[1376024400000,80.49],[1376283600000,80.25],[1376370000000,82.22],[1376456400000,82.16],[1376542800000,81.99],[1376629200000,81.92],[1376888400000,80.41],[1376974800000,80.62],[1377061200000,80.05],[1377147600000,82.21],[1377234000000,81.67],[1377493200000,81.9],[1377579600000,81.17],[1377666000000,82.68],[1377752400000,81.6],[1377838800000,80.94],[1378184400000,82.42],[1378270800000,82.86],[1378357200000,84.22],[1378443600000,85.14],[1378702800000,86.45],[1378789200000,86.9],[1378875600000,87.05],[1378962000000,86.58],[1379048400000,86.72],[1379307600000,87],[1379394000000,87.74],[1379480400000,88.95],[1379566800000,88.79],[1379653200000,87.44],[1379912400000,87.04],[1379998800000,87.91],[1380085200000,88.57],[1380171600000,88.83],[1380258000000,88.82],[1380517200000,88.36],[1380603600000,89.05],[1380690000000,89.85],[1380776400000,89.44],[1380862800000,90.01],[1381122000000,89.29],[1381208400000,87.95],[1381294800000,87.04],[1381381200000,89.42],[1381467600000,90.02],[1381726800000,91.17],[1381813200000,90.54],[1381899600000,92.18],[1381986000000,91.43],[1382072400000,93.99],[1382331600000,93.48],[1382418000000,94.46],[1382504400000,92.84],[1382590800000,92.85],[1382677200000,92.9],[1382936400000,92.85],[1383022800000,94],[1383109200000,93.88],[1383195600000,93.72],[1383282000000,93],[1383544800000,93.51],[1383631200000,92.39],[1383717600000,93.23],[1383804000000,92.05],[1383890400000,93.79],[1384149600000,93.87],[1384236000000,91.99],[1384322400000,93.08],[1384408800000,93.31],[1384495200000,92.98],[1384754400000,92.02],[1384840800000,91.28],[1384927200000,90.45],[1385013600000,91.01],[1385100000000,92.73],[1385359200000,89.81],[1385445600000,89.46],[1385532000000,87.95],[1385704800000,88.42],[1385964000000,87.6],[1386050400000,87.64],[1386136800000,87.28],[1386223200000,86.87],[1386309600000,88.15],[1386568800000,88.03],[1386655200000,87.01],[1386741600000,86.14],[138682800! 0000,86.9! 6],[1386914400000,86.37],[1387173600000,87],[1387260000000,85.54],[1387346400000,87.26],[1387432800000,86.47],[1387519200000,87.27],[1387778400000,87.32],[1387864800000,88.31],[1388037600000,89.39],[1388124000000,89.9],[1388383200000,89.17],[1388469600000,90.11],[1388642400000,88.82],[1388728800000,88.35],[1388988000000,88.02],[1389074400000,87.51],[1389160800000,86.98],[1389247200000,86.48],[1389333600000,88.17],[1389592800000,87.46],[1389679200000,88.87],[1389765600000,88.89],[1389852000000,88.61],[1389938400000,90.21],[1390284000000,91.09],[1390370400000,91.21],[1390456800000,90.26],[1390543200000,88.15],[1390802400000,87.91],[1390888800000,87.76],[1390975200000,87.3],[1391061600000,88.81],[1391148000000,87.57],[1391407200000,86.23],[1391493600000,87.19],[1391580000000,86.16],[1391666400000,88.51],[1391752800000,89.5],[1392012000000,89.04],[1392098400000,90.37],[1392184800000,90.03],[1392271200000,90.26],[1392357600000,90.45],[1392703200000,90.63],[1392789600000,90.48],[1392876000000,91.03],[1392962400000,90.07],[1393221600000,92.72],

Have You Overlooked This Mid Cap Medical Technology and Systems Stock? CFN, IHI & XHE

Overlooked mid cap medical technology and systems stock CareFusion Corporation (NYSE: CFN) could offer nice growth in the healthcare space, meaning its worth taking a closer look at the stock along with the performance of potential benchmarks like the iShares Dow Jones US Medical Device ETF (NYSEARCA: IHI) and SPDR S&P Health Care Equipment ETF (NYSEARCA: XHE). I should mention that we have recently added CareFusion Corporation to our SmallCap Network Elite Opportunity (SCN EO) portfolio because the stock continues to be in a long-term thrusting patter and we believe its also undervalued based on current valuation.

What is CareFusion Corporation?

Mid cap CareFusion Corporation is a global corporation serving the health care industry with products and services that help hospitals measurably improve the safety and quality of care. The company's product families include Pyxis® for medication and supply dispensing, Alaris® for infusion, AVEA® ventilators, Jaeger® for respiratory diagnostic instruments, AVAmax® and PleurX® for interventional procedures, V. Mueller® and Snowden-Pencer® surgical instruments, and ChloraPrep® skin antiseptic.

As for potential performance benchmarks or medical device ETF peers, the iShares Dow Jones US Medical Device ETF tracks the Dow Jones U.S. Select Medical Equipment Index through investments in 50 medical devices stocks while the SPDR S&P Health Care Equipment ETF tracks the S&P Health Care Equipment Select Industry Index through 69 holdings.

What You Need to Know or Be Warned About CareFusion Corporation

In early February, CareFusion Corporation reported a 1% second quarter fiscal 2014 revenue increase to$922 million while adjusted income from continuing operations fell 4% to $116 million and remained even with the prior year at $0.54 per diluted share. The Chairman/CEO commented:

"Our team executed well during the quarter, with continued strength across the board in Procedural Solutions and in the Infusion Systems business line. During the quarter, we also secured a record number of committed contracts in the Dispensing Technologies business line, giving us the necessary momentum to drive strong second-half results. In addition, we made progress against our long-term strategy, gaining scale globally through the acquisitions of Sendal and Vital Signs and building a healthy innovation pipeline in Procedural Solutions."

During the last quarter, CareFusion Corporation invested $186 million to repurchase 4.8 million shares under a two-year $750 million share repurchase program and to date in fiscal 2014, the company has invested $375 million to repurchase 9.8 million shares. In addition, CareFusion Corporation has recently completed the acquisition of the Vital Signs division of GE Healthcare in the United States, China and certain other geographies plus the company has agreed to invest approximately $100 million for a 40% minority stake in Caesarea Medical Electronics (CME), an Israeli manufacturer of compact and highly portable infusion and syringe pumps for homecare and hospital settings.

Investors should also be aware that in early January, CareFusion Corporation announced a final settlement agreement with the government to pay $40.1 million to settle allegations it paid kickbacks and promoted its medical technology products for uses not approved by the FDA. The deal also resolves claims that CareFusion paid more than $11.6 million in kickbacks to a physician who co-chaired the Safe Practices Committee at the National Quality Forum while Cynthia Kirk, a former CFN vice president who initially filed a whistleblower lawsuit under provisions of the False Claims Act, will receive $3.26 million. In the announcement, the Chairman/CEO commented:

"We are pleased to resolve this matter and are confident we have strong practices, processes and controls in place. We have made significant investments during the past several years to improve our quality and compliance systems, including our sales and marketing practices, and will continue to do so as part of our commitment to adhering to the highest standards and aligning with best global practices."

Otherwise, it should be mentioned that CareFusion Corporation has a trailing P/E of 23.47 and a forward P/E of 14.69 along with no dividend.

Share Performance: CareFusion Corporation vs IHI & XHE

On Wednesday, mid cap CareFusion Corporation fell 1.28% to $39.36 (CFN has a 52 week trading range of $32.48 to $41.98 a share) for a market cap of $8.20 billion plus the stock is down 1.5% since the start of the year, up 13.5% over the past year and up 112.8% over the past five years. Here is a look at the performance of mid cap CareFusion Corporation verses medical device ETFs iShares Dow Jones US Medical Device ETF and SPDR S&P Health Care Equipment ETF:

As you can see from the above performance chart, the performance of mid cap CareFusion Corporation has largely mirrored that of benchmarks iShares Dow Jones US Medical Device ETF and SPDR S&P Health Care Equipment ETF.

Finally, here is a look at the latest technical charts for all three investments:

The Bottom Line. At the very least, mid cap CareFusion Corporation is worth a closer look at by any investor looking for exposure to the medical technology and systems space. 

SmallCap Network Elite Opportunity (SCN EO) has an open position in CFN. To find out what other open positions SCN EO currently has, and to learn why so many traders and investors are relying on this premium subscription service, click here to find out more.

Why Darden Restaurants Is a Sell in the Near-Term

Darden Restaurants Inc. (DRI) is the world's largest publicly held casual dining restaurant company. It owns and operates the Olive Garden®, Red Lobster®, LongHorn Steakhouse®, The Capital Grille®, Yard House®, Bahama Breeze®, Seasons 52®, Eddie V's Prime Seafood® and Wildfish Seafood Grille® restaurant brands.

Below Analysts' Expectations

Darden Restaurants is the largest full-service restaurant company in the world. As of May 26 2013, the company operated 2,138 restaurants in the U.S. and Canada, all of which are owned by the company, except three restaurants located in Florida and three restaurants located in California that are owned by joint ventures managed by the company. As of the same date, the company had 37 franchised restaurants in Japan, the Middle East, Puerto Rico and Mexico pursuant to area development and franchise agreements. But unfortunately, sales declined at its best known brands. Darden´s performance was hurt by a sales drop at its Red Lobster chain, which it plans to separate the segment either through a spin-off or sale. This transaction could take place in 2015. Olive Garden also underperformed analysts' expectations for the major part of fiscal 2013.

Inflation Risk

Outlook for food inflation at Darden is higher than in the past, so food and beverage expenses ratio will be higher year over year. Commodity inflation will be between 2.5% to 3.0% in fiscal 2014 and most of the food inflation will come from proteins, particularly beef and seafood. Furthermore, energy costs are also likely to be up year over year. As a matter of fact, earnings for fiscal 2014 are probably declining in the range of 15% to 20%.

Long-Term Drivers

The Specialty Restaurant Group (SRG), which includes Bahama Breeze and The Capital Grille, has grown over the last couple of quarters. Eddie V's Restaurants and Yard House might be meaningful long-term drivers, as we think most of the growth in the next years will come from the acquisition of those restaur! ants.

Analyst Recommendation

The firm is currently Zacks Rank # 3 - Hold, and it also has a longer-term recommendation of "Underperfom." For investors looking for a Zacks Rank # 1 – Strong Buy, Ignite Restaurant Group Inc. (IRG) and The Wendy's Company (WEN) could be the options.

P/E, Earnings and ROE

In terms of valuation, the stock sells at a trailing P/E of 18.5x, trading at a premium compared to the industry. Earnings per share (EPS) decreased by 42.3% in the most recent quarter compared to the same quarter a year ago. The company missed the Zacks Consensus Estimate for both earnings and revenues in fiscal second quarter 2014.

Finally, I always like to see one of the most important financial ratios applying to stockholders, the best measure of performance for a firm's management: the return on equity. The ratio has decreased when compared to the same quarter one year prior. Let´s compare the current ratio with the peer group in the next table:

Ticker	Company Name	ROE (%)
DRI	Darden Restaurants	20
WEN	Wendy´s	2.36
EAT	Brinker International, Inc.	109.37
BWLD	Buffalo Wild Wings, Inc.	15.36
DNKN	Dunkin Brands Group Inc	36.06

As we can see, the firm has a higher ROE than Wendy´s and Buffalo Wild Wings, Inc. (BWLD), but far less than the ones from Dunkin Brands Group Inc (DNKN) and Brinker International, Inc. (EAT).

Final Comment

As outlined in this article, the company underperformance in its core brands, Red Lobster and Olive Garden resulted in lower sales in the last quarter. Darden was not the only one facing trou! ble, othe! r restaurants such as Dine Equity (DIN) and Yum! Brands (YUM) have also fallen short. On the other hand, we see we think Darden can continue to get benefitted from the acquisitions.

With a closed price level that was not very different from its closing price of one year earlier, in this opportunity I would recommend investors to stay away from this stock. Hedge fund gurus have also been active in the company in fourth quarter 2013. Gurus like Jim Simons (Trades, Portfolio), David Dreman (Trades, Portfolio) and Westport Asset Management (Trades, Portfolio) have sold or reduced positions in it.

Disclosure: Victor Selva holds no position in any stocks mentioned.

Also check out: David Dreman Undervalued Stocks David Dreman Top Growth Companies David Dreman High Yield stocks, and Stocks that David Dreman keeps buying Jim Simons Undervalued Stocks Jim Simons Top Growth Companies Jim Simons High Yield stocks, and Stocks that Jim Simons keeps buying

Currently 5.00/512345 Rating: 5.0/5 (1 vote)

Voters:

Subscribe via Email Subscribe RSS Comments Please leave your comment:
More GuruFocus Links

Latest Guru Picks	Value Strategies
Warren Buffett Portfolio	Ben Graham Net-Net
Real Time Picks	Buffett-Munger Screener
Aggregated Portfolio	Undervalued Predictable
ETFs, Options	Low P/S Companies
Insider Trends	10-Year Financials
52-Week Lows	Interactive Charts
Model Portfolios	DCF Calculator
RSS Feed	Monthly Newsletters
The All-In-One Screener	Portfolio Tracking Tool

MORE GURUFOCUS LINKS

Latest Guru Picks	Value Strategies
Warren Buffett Portfolio	Ben Graham Net-Net
Real Time Picks	Buffett-Munger Screener
Aggregated Portfolio	Undervalued Predictable
ETFs, Options	Low P/S Companies
Insider Trends	10-Year Financials
52-Week Lows	Interactive Charts
Model Portfolios	DCF Calculator
RSS Feed	Monthly Newsletters
The All-In-One Screener	Portfolio Tracking Tool

DRI STOCK PRICE CHART 50.71 (1y: +0%) $(function(){var seriesOptions=[],yAxisOptions=[],name='DRI',display='';Highcharts.setOptions({global:{useUTC:true}});var d=new Date();$current_day=d.getDay();if($current_day==5||$current_day==0||$current_day==6){day=4;}else{day=7;} seriesOptions[0]={id:name,animation:false,color:'#4572A7',lineWidth:1,name:name.toUpperCase()+' stock price',threshold:null,data:[[1364360400000,50.66],[1364446800000,51.68],[1364792400000,50.9],[1364878800000,51.33],[1364965200000,50.61],[1365051600000,51.08],[1365138000000,50.54],[1365397200000,49.9],[1365483600000,49.1],[1365570000000,50.17],[1365656400000,49.83],[1365742800000,50.26],[1366002000000,48.81],[1366088400000,49.44],[1366174800000,48.77],[1366261200000,48.83],[1366347600000,48.89],[1366606800000,49.06],[1366693200000,49.88],[1366779600000,50.35],[1366866000000,50.97],[1366952400000,50.99],[1367211600000,50.88],[1367298000000,51.63],[1367384400000,51.69],[1367470800000,52.33],[1367557200000,52.82],[1367816400000,52.91],[1367902800000,53.16],[1367989200000,53.31],[1368075600000,52.99],[1368162000000,53.56],[1368421200000,53.16],[1368507600000,53.76],[1368594000000,53.91],[1368680400000,52.78],[1368766800000,53.43],[1369026000000,53.45],[1369112400000,53.65],[1369198800000,52.62],[1369285200000,53.22],[1369371600000,52.83],[1369717200000,53.33],[1369803600000,52.91],[1369890000000,52.48],[1369976400000,51.8],[1370235600000,52.56],[1370322000000,53.28],[1370408400000,52.74],[1370494800000,53.31],[1370581200000,54.23],[1370840400000,54.66],[1370926800000,54.23],[1371013200000,52.67],[1371099600000,53.28],[1371186000000,52.54],[1371445200000,52.77],[1371531600000,53.13],[1371618000000,52.62],[1371704400000,51.23],[1371790800000,50.12],[1372050000000,49.03],[1372136400000,49.07],[1372222800000,49.55],[1372309200000,49.41],[1372395600000,50.48],[1372654800000,50.64],[1372741200000,50.91],[1372827600000,50.96],[1373000400000,51.33],[1373259600000,51.72],[1373346000000,51.89],[1373432400000,50.95],[1373518800000,50.55],[1373605200000,50.43],[1373864400000,51.15],[1373950800000,50.34],[1374037200000,49.56],[1374123600000,50.07],[1374210000000,49.49],[1374469200000,49.22],[1374555600000,49.21],[1374642000000,48.38],[1374728400000,48.39],[1374814800000,48.93],[1375074000000,49.02],[1375160400000,49.02]! ,[1375246800000,49.05],[1375333200000,49.56],[1375419600000,49.88],[1375678800000,49.62],[1375765200000,49.25],[1375851600000,49.68],[1375938000000,49.54],[1376024400000,49.56],[1376283600000,49.26],[1376370000000,49.14],[1376456400000,48.76],[1376542800000,47.84],[1376629200000,47.91],[1376888400000,47.65],[1376974800000,47.84],[1377061200000,46.93],[1377147600000,47.27],[1377234000000,47.01],[1377493200000,46.93],[1377579600000,46.46],[1377666000000,46.36],[1377752400000,46.55],[1377838800000,46.21],[1378184400000,46.21],[1378270800000,46.77],[1378357200000,46.86],[1378443600000,47.45],[1378702800000,47.65],[1378789200000,47.86],[1378875600000,48.43],[1378962000000,48.21],[1379048400000,48.37],[1379307600000,48.85],[1379394000000,49.58],[1379480400000,49.81],[1379566800000,49.3],[1379653200000,45.78],[1379912400000,46.26],[1379998800000,46.42],[1380085200000,46],[1380171600000,46.44],[1380258000000,46.7],[1380517200000,46.29],[1380603600000,46.86],[1380690000000,46.57],[1380776400000,45.95],[1380862800000,46.72],[1381122000000,45.89],[1381208400000,46.28],[1381294800000,49.57],[1381381200000,49.78],[1381467600000,50.5],[1381726800000,50.96],[1381813200000,51.01],[1381899600000,50.66],[1381986000000,51.8],[1382072400000,52.07],[1382331600000,52.07],[1382418000000,51.95],[1382504400000,51.04],[1382590800000,51.49],[1382677200000,51.7],[1382936400000,51.53],[1383022800000,52.6],[1383109200000,52.23],[1383195600000,51.53],[1383282000000,51.48],[1383544800000,51.99],[1383631200000,52.96],[1383717600000,53.06],[1383804000000,52.14],[1383890400000,52.16],[1384149600000,52.15],[1384236000000,51.92],[1384322400000,52.21],[1384408800000,52.66],[1384495200000,53.5],[1384754400000,53.15],[1384840800000,52.76],[1384927200000,52.96],[1385013600000,53.57],[1385100000000,53.87],[1385359200000,53.52],[1385445600000,53.23],[1385532000000,53.49],[1385704800000,53.33],[1385964000000,52.91],[1386050400000,52.2],[1386136800000,52.22],[1386223200000,52.06],[1386309600000,52.48],[1386568800000,52.28],[1386655200000,51.83],[1! 386741600! 000,51.47],[1386828000000,51.38],[1386914400000,51.63],[1387173600000,52.29],[1387260000000,52.33],[1387346400000,52.92],[1387432800000,51.02],[1387519200000,51.09],[1387778400000,54.35],[1387864800000,54.01],[1388037600000,54.32],[1388124000000,54.33],[1388383200000,54.47],[1388469600000,54.37],[1388642400000,53.32],[13

Time to Bet Against the Majority With IsoRay (ISR)

Ugh. It's fun to be right about a stock, but it's exhausting to be too right, too fast. Case in Point? IsoRay, Inc. (NYSE: ISR). Yours truly posted some bullish comments on ISR just a couple of days ago, explaining how that day's move above a key ceiling meant a new bull trend was underway, and more gains from that price would be far easier to muster. Well, good news for those who heeded the advice - IsoRay shares are up 44% today.

That's not necessarily a good thing though... or not necessarily something we were prepared to contend with so soon anyway. Now that ISR is trading around $1.60, many investors are being forced to make a decision - sell it here and lock in a nice gain, or hold onto it and hope IsoRay, Inc. can find a floor around here (and not pull back) in anticipation of another round of bullishness soon.

My opinion? Take the money and run.

While the news that came out this morning - the news that drove the stock to where it is now - was deemed as a surprise, it shouldn't have been surprising to anybody who was watching the stock as of Monday. The apparent strength then was quite likely the response to knowledge (from someone, somewhere) that something big was going to be unveiled soon. See, there are never any actual surprises with stocks ... someone always knows something. It just didn't become official until today, and when it did, the rest of investors who didn't sense something was coming then piled in today. Problem: That bid-up most likely pushed IsoRay shares up to their best value they're going to see for a while.

How's that? The weekly chart of ISR below tells the tale. With today's high of $1.74, ISR has matched its third-best high since 2009. Worse, the stock peeled back immediately after hitting that peak, and at $1.54 is struggling to even hold at the lower end of the range of all its major peaks hit since 2009. And that point can't be made enough - the last eight times IsoRay managed to hurl itself above the $1.47 level, all eight times it's bee! n unable to stave off a significant pullback. It's unlikely this ninth time is going to be any different.

The moral of the story? While it's certainly going to be an unpopular premise, while everyone else is buying today, the smart-money move for any who took the advice two days ago is to use this buying spree as an opportunity to lock in profits while the 27% profit (since the 17th) can be locked in.

For more trading ideas and insights like these, be sure to sign up for the free SmallCap Network newsletter. You'll get stock picks, market calls, and more, every day. Here's what you've missed recently.

CFP Board moves to strengthen academic underpinning of planning profession

The Certified Financial Planning Board of Standards Inc. will establish a new doctoral program, launch an academic journal and explore the feasibility of an academic center, the organization said Thursday.

The moves are part of the CFP Board’s continuing effort to strengthen the educational foundation of the profession.

Beginning this fall, Louisiana State University will offer a Ph.D. in financial planning through its E.J. Ourso College of Business. It will be the first financial planning doctoral program housed in a business school accredited by the Association to Advance Collegiate Schools of Business.

“This is a big deal,” CFP Board chief executive Kevin Keller said during a webcast.

Financial planning Ph.D. degrees are offered independently of business schools at Kansas State, Texas Tech, the University of Georgia and the University of Missouri.

The CFP Board also is launching a peer-reviewed academic journal in collaboration with the publisher John Wiley & Sons. Its content will focus on the theoretical principles of financial planning and their application in practice.

“With this journal, we will be creating an academic home for those faculty who are teaching and conducting research on financial planning,” CFP Board Chairman Ray Ferrara said during the webcast.

The publication will provide an avenue for academicians to gain tenure.

That will help supply teachers for the more than 225 colleges and universities that offer CFP-registered programs and the more than 120 that grant baccalaureate degrees in financial planning, Mr. Keller said.

The journal could become a focal point for a research facility that the CFP Board is prospectively calling the Center for Financial Planning. The CFP Board is conducting a feasibility of the initiative.

The center would be an academic hub for the profession, Mr. Ferrara said.

“We believe the CFP Board is ideally positioned to take a leadership role in creating a place that fosters that research in financial planning,” he said.

The CFP Board grants the CFP designation and administers related academic and ethical requirements and enforcement for the 69,440 CFP professionals in the United States.

U.S. stocks sell off on Yellen’s comments

Getty Images Federal Reserve Board Chairwoman Janet Yellen.

NEW YORK (MarketWatch) — U.S. stocks dropped and bond yields surged Wednesday after Federal Reserve chairwoman Janet Yellen said that rate hikes could happen about six months after the Fed wraps up bond purchases.

Top 10 Dividend Companies To Invest In 2014

The S&P 500 (SPX)  fell 11.48 points, or 0.6%, to 1,860.77, most of the losses coming after the comment from Yellen during the press conference. The Dow Jones Industrial Average (DJIA)  dropped 114.02 points, or 0.7%, to 16,222.17.

/quotes/zigman/3870025/realtime SPX 1,860.77, -11.48, -0.61% Stocks dive on Yellen's remarks

The Nasdaq Composite (COMP)  shed 25.71 points, or 0.68%, to 4,307.60.

The FOMC decided to trim the bond purchases by another $10 billion this month and changed the way it targets unemployment and inflation in deciding short-term interest rates.

Yellen fielded questions from the press following the widely expected Fed policy announcement in her first news conference as the Fed chairwoman, succeeding Ben Bernanke.

Stocks, which were flat before the Fed statement, retreated afterwards. But the hard drop, which took the Dow down more than 200 points, came when a reporter asked Yellen how long the Fed would wait to start raising rates after it stops buying bonds in what's known as quantitative easing.

Yellen said the Fed's language "probably means something on the order of around six months, that type of thing." The taper of the Fed's bond purchases is expected to end in October or November, putting the potential first rate hike on course for April or May of 2015.

Read the recap of our live stock-market coverage.

See also: Recap of live coverage of the Fed decision and the Janet Yellen news conference.

Yields on 10-year Treasurys surged, gold prices fell further and the dollar spiked against the Japanese yen after the Fed announcement and Yellen comments. Traders in fed funds futures moved up their bets on rate hikes by two meetings, to April 2015.

"It was a harsh reminder that QE wouldn't be here forever and it would be done by the fall. Then when she noted that 'considerable time' for keeping the fed funds rate in the current range would be six months after QE ends, this opened the door to higher rates by April. July was the consensus for the first rate hike," said Ryan Detrick, senior technical strategist at Schaeffer's Investment Research.

Earlier, a batch of mixed earnings did little to influence otherwise cautious sentiment.

Among individual stocks, shares of First Solar Inc. (FSLR)  jumped 21% to top the S&P 500 index after the company forecast strong earnings and said it is collaborating with GE to develop a more cost-effective photovoltaics power plant design. See also: Movers and shakers .

Shares in KB Home (KBH)  jumped 5.9% after the home maker swung to profit in its fiscal first quarter, beating analysts estimates.

Nu Skin Enterprises (NUS)  shed 5.8% after it said in a 10-K filing on Tuesday that it expects to be fined and potentially face other sanctions in China following an investigation into its business practices.

Shares of Hewlett-Packard Co. (HPQ)  rose 3.5% as the tech giant is scheduled to host a shareholders meeting later Wednesday following the release of interim financial statements.

Cigna Corp. (CI)  shares gained 3.3% after steep losses recently. The stock is down over 8% year to date.

Pacific Sunwear of California Inc. (PSUN)   shares rose 3.7% after the retailer posted better-than-expected results for the fourth quarter on Tuesday after the bell.

In overseas markets, Asia had a mixed day, with the Nikkei 225 (JP:NIK) (JP:NIK) giving up a more than 1.2% gain at one point to close up just 0.4%, while Chinese stocks went nowhere. European markets slipped, while the FTSE 100 index (UK:UKX)  rose after the release of minutes from the latest Bank of England Monetary Policy meeting and the latest jobs data. (GBPUSD)

More must-reads from MarketWatch:

Why stocks rallied in face of new Cold War

Fed transparency boils down to 16 dots on a page

A smartwatch for timing the market

Top 5 Dividend Companies To Buy Right Now

Top 5 Dividend Companies To Buy Right Now: New York Mortgage Trust Inc.(NYMT)

New York Mortgage Trust, Inc., together with its subsidiaries, operates as a real estate investment trust (REIT) in the United States. The company engages in acquiring, investing, financing, and managing mortgage-related assets. It primarily invests in agency residential adjustable-rate, hybrid adjustable-rate, and fixed-rate mortgage-backed securities (RMBS); non-Agency RMBS; prime adjustable-rate residential mortgage loans held in securitization trusts; commercial mortgage-backed securities; commercial mortgage loans; and other commercial real estate-related debt investments. The company has elected to be taxed as a REIT and will not be subject to federal income tax if it distributes at least 90% of its REIT taxable income to its stockholders. New York Mortgage Trust, Inc. was founded in 1989 and is headquartered in New York, New York.

Advisors' Opinion:

• [By Eric Volkman]

  Investors are being rewarded for putting their trust in New York Mortgage Trust (NASDAQ: NYMT  ) . The REIT has declared a common stock dividend for its current quarter of $0.27 per share, to be paid on July 25 to shareholders of record as of June 28. That amount matches each of the company's preceding four distributions, the most recent of which was doled out at the end of April. Before that, it paid $0.25 per share.

• [By Amanda Alix]

  More mREITs stay the course, but two trim payouts
  Despite suffering many tumbles and bruises, several mREITs have announced that their dividends will be unchanged from the previous quarter. Several did so last week, and yesterday saw Hatteras Financial (NYSE: HTS  ) , an agency-only trust, keeping its own $0.70 per share payout the same. Hybrid New York Mortgage Trust (NASDAQ: NYMT  ) also kept its dividend stable, at $0.27 per s! hare, in line with its four most recent distributions.

source from Top Stocks Blog:http://www.topstocksblog.com/top-5-dividend-companies-to-buy-right-now.html

Get a Grip: 10 Steps To Controlling Your 401k Investments

At Investing Daily, we have grown increasingly concerned with the national trend toward underfunded retirement plans. As a service to our readers, for the next few weeks we'll send you a complimentary series of focused briefs to get you thinking about new ways to maximize performance both inside and outside of a structured 401k or similar plan. 

This is the third installment in a five-part series.

"Ask People's Advice, but Decide For Yourself." – Old Ukrainian Proverb

I heard the refrain all the time in my trading days on Wall Street.

The client, a little nervous and apprehensive, would say, "I don't trust my instincts with my portfolio – you guys do everything for me."

My job was to trade, but I had enough contact with clients to know they really didn't trust their instincts, and were only too happy to turn 100 percent control of their financial fortunes to fund managers, stockbrokers, and investment bankers.

Yes, you want to go with a professional, but it's never a good idea to relinquish 100 percent control of your investment portfolio, and that goes double for your 401k plan.

The sad fact is, some people just don't want to take control over their investment portfolio.

That's a big mistake.

Nobody is impacted by investment decisions as much as the person whose name is on the portfolio. And nobody is going to step in for you and make good on a lousy asset allocation strategy or a misguided risk assessment that leads to massive portfolio losses.

No, taking control of your investment portfolio is all on you – as it should be.

Fortunately, getting a grip on your 401k investments is easier than you think. In fact, you can get the job done in these 10 easy steps:

Step #1: Know your net worth

In a global economy where information is as much a commodity as widgets or weed whackers, it pays to know what you�! �re worth.

That's where knowing your net worth comes in handy.

Your net worth, also known as a personal balance sheet, gives you a blueprint for your financial life, one that you can work from again and again as you make lifetime financial decisions. It's a fluid document that you'll need to revisit every six months or (at the outer limits) every year, but you'll be glad you have it.

Quantifying your financial goals is critical in the investment process and your personal balance forms the yardstick by which you can measure the success of your financial plan. As time marches on, you can tweak the strategy for your financial plan along the way to achieve your defined goals.

Step #2: Know your objectives

Any good marksman will tell you the key to hitting a target is having a target. Having something to aim at, to work towards, gives you the framework for a successful personal portfolio plan.

Step #3: Know your risk factor

Risk assessment is easy, although investment advisors try their hardest to make it complicated. Always know going in what you can afford to lose and, going forward, manage your portfolio correspondingly.

Knowing your risk tolerance will help you decide which investment strategy is right for you. For example, if you have a low risk tolerance, you may want to invest in a more conservative portfolio even though your time horizon indicates you could be more aggressive. Evaluating your timeframe can be critical, particularly when building a portfolio based upon a projected retirement date.

Step #4: Diversify your assets

The best way to have avoided being caught up in market volatility is to have your money spread around among different investments.

When your investments are diversified, or spread across different asset classes or types of securities, they work together to help reduce risk. So go ahead and enjoy the benefits of slow and steady blue chip stocks along with potentially higher-flying growth stocks.! Mix in s! ome US Treasury Notes with those international bonds. Spread the wealth and secure portfolio performance in the process.

Step #5: Allocate your assets

In Wall Street terms, asset allocation is more like investment diversification on steroids.

One Wall Street trader compares asset allocation to earning two quarters and then putting the coins not only in different pockets, but in different pants. That's as good a definition as any.

In more formal terms, asset allocation means investing across a variety of asset classes, with the objective of determining the optimal mix of assets for your portfolio to properly withstand – and adjust to – changing market conditions. Usually that means branching out among the four main asset classes – stocks, bonds, cash and metals. The difference between diversification and asset allocation is that the former is the "macro" big picture theme and the latter is the "micro" nuts-and-bolts theme to building your mutual fund.

So yes, you should diversify your portfolio. But how you do that is what's known as asset allocation.

Step #6: Find a "comfort zone" with a financial advisor

Having a professional shoulder to lean on once in a while can be a source of comfort to an independent-minded investor, especially one without significant portfolio management experience. Hire a good advisor but continue to do your own homework and pick your own stocks. Run those picks by your advisor to see if they pass the smell test.

Always feel free to drop me a line here at the 401k Millionaire – I'm happy to take a look at your portfolio and offer any help and guidance on getting you where you need to be, investment-wise.

Step #7: Properly research investments

This one's a no-brainer – you've got to do your homework.

Read prospectuses, check company financial statements, watch CNBC, and check out the 401k Millionaire on a regular basis. In short, do anything you can to bone up on the fin! ancial ma! rkets and the companies that trade on them.

Also, take advantage of on-demand investment tutorial web casts and webinars and use any real-time information offered by your investment firm. Join and participate in online trading communities and swap investment strategies with like-minded investors. In the investment world, understand that knowledge really is power.

Step #8:  Be the boss

Never give a financial advisor the right to buy or sell without your prior approval. That way you won't have any surprises and you'll have control over what enters and leaves your personal portfolio. Remember that you're the one who has to live with the decisions made on your personal portfolio – it's your investment "brand" and nobody else's.

Step #9: Check your ego/emotions at the door

One of the biggest errors average investors make is investing with their emotions.

When stocks rise, they buy; when they fall, they sell. That's exactly the opposite of what a successful investor should do. If you can't trust your emotions then by all means run your portfolio selections by a professional advisor – or even trusted family member, friend, or spouse.

Step #10: Lastly, have fun

You're your own boss now and the 401k investment brand you create will have your personal stamp on it. So enjoy all the benefits and all the power that genuine financial independence provides.

As you do so, consider how far you've come in taking control of your financial life. After all, nobody has as much invested in your financial future as you do.

Brian O'Connell is an investment analyst at Investing Daily, and the chief investment strategist of the 401K Millionaire. An ex-Wall Street bond trader, he has appeared as an expert financial commentator on CNN, NPR, Fox News, Bloomberg, CNBC, C-Span, CBS Radio, and many other media broadcast outlets, and is the author of two best-selling books on retirement investing.

Stock Talk

We encourage you ! to engage! with our analysts and your fellow subscribers on our website. To ask a question or post a comment related to a particular article, please do so in the Stock Talk field at the bottom of that article.

Or to ask a general question, please go to the main Stock Talk page found under the Resources menu for each publication.

10 Best Biotech Stocks To Buy For 2014

10 Best Biotech Stocks To Buy For 2014: Alnylam Pharmaceuticals Inc.(ALNY)

Alnylam Pharmaceuticals, Inc., a biopharmaceutical company, engages in discovering, developing, and commercializing novel therapeutics based on RNA interference (RNAi). Its core product programs under clinical or pre-clinical development include ALN-TTR, a Phase I clinical trial program for the treatment of transthyretin-mediated amyloidosis; ALN-APC, a Phase I clinical trial program for the treatment of hemophilia; ALN-PCS for the treatment of severe hypercholesterolemia; ALN-HPN, a pre-clinical development for the treatment of refractory anemia; and ALN-TMP, a pre-clinical development for the treatment of hemoglobinopathies, including beta-thalassemia and sickle cell anemia. The company?s partner-based programs comprise ALN-RSV01, a Phase II clinical trial program for the treatment of respiratory syncytial virus infection; ALN-VSP, a Phase I clinical trial completed program for the treatment of liver cancers; and ALN-HTT, a pre-clinical development for the treatment of H untington?s disease. It has strategic alliances with Novartis Pharma AG; F. Hoffmann-La Roche Ltd; Takeda Pharmaceutical Company Limited; Isis Pharmaceuticals, Inc.; Medtronic Inc.; Kyowa Hakko Kirin Co., Ltd.; and Cubist Pharmaceuticals, Inc. The company was founded in 2002 and is headquartered in Cambridge, Massachusetts.

Advisors' Opinion:

• [By Jake L'Ecuyer]

  Equities Trading UP
  Shares of Alnylam Pharmaceuticals (NASDAQ: ALNY) got a boost, shooting up early in the day, but settling on a gain of 40.40 percent to $92.96 after the company reported that it has acquired investigational RNAi Therapeutic assets from Merck (NYSE: MRK). Genzyme and Alnylam expanded their collaboration on rare genetic diseases.

• [By Jake L'Ecuyer]

  Equities Trading UP
  Shares of Alnylam Pharmaceuticals (NASDAQ: ALNY! ) got a boost, shooting up 53.25 percent to $101.47 after the company reported that it has acquired investigational RNAi Therapeutic assets from Merck (NYSE: MRK). Genzyme and Alnylam expanded their collaboration on rare genetic diseases.

• [By Markus Aarnio]

  2. Alnylam Pharmaceuticals (ALNY), a biopharmaceutical company, engages in discovering, developing, and commercializing novel therapeutics based on RNA interference [RNAi].

source from Top Stocks Blog:http://www.topstocksblog.com/10-best-biotech-stocks-to-buy-for-2014.html

Best Japanese Stocks To Buy For 2014

Best Japanese Stocks To Buy For 2014: ITonis Inc (ITNS)

ITonis Inc., incorporated on July 5, 2005, operates as a holding company. The Company focuses to purchase entrepreneurial companies that have established themselves, or are expected to establish themselves in various markets.

The Company invests in small growth entrepreneurial companies. In May 2011, the Company acquired Performance Mortgage Group, Inc., as a wholly owned subsidiary.

Advisors' Opinion:

• [By Peter Graham]

  What's the Catch With MyEcheck Inc? According to various disclosures, transactions of $500 and $2k have or will occur to mention MyEcheck Inc in various investment newsletters. The most recent news for MyEcheck Inc is not so recent as it dates from last April and was an announcement that the company would license its proprietary system to other operators for a share of their transaction revenue on the system with the CEO pointing out: "In addition to our processing revenue, we will have licensing revenue that will exceed our processing revenue in a relatively short period of time." However, a quick look at MyEcheck Inc's financials reveals revenues of $3k (most recent reported quarter), zero, zero and zero for the past four quarters along with net income of $387k (most recent reported quarter) and net losses of $8k, $35k and $14k. At the end of last June, MyEcheck Inc had no cash to cover $804k in current liabilities. So maybe investor will want to wait for evidence of licensing and processing revenue to materialize.

  ITonis Inc (OTCMKTS: ITNS) Recently Announced Its First Order

  Small cap ITonis Inc is an Orange County, California based holding company established in 2005 that's is currently undergoing a company-wide transformation to embark upon an aggressive acquisition plan to purchase high growth entrepreneurial companies that have established themselves! , or are expected to establish themselves as leaders in various market niches. On Friday, ITonis Inc fell 9.09% to $0.003 for a market cap of $2.56 million plus ITNS is down 80.3% over the past year and down 50% over the past five years according to Google Finance.

source from Top Stocks Blog:http://www.topstocksblog.com/best-japanese-stocks-to-buy-for-2014.html

Top India Companies To Buy For 2014

Top India Companies To Buy For 2014: Infosys Technologies Limited(INFY)

Infosys Ltd. provides information technology (IT) and consulting services worldwide. It offers IT services, such as application, architecture, independent validation and testing, information management, infrastructure, packaged application, SOA, systems integration, and knowledge services; product engineering services, manufacturing process and plant solutions, and product lifecycle management services; and consulting services in the areas of information and technology strategies, product innovation, next generation commerce, process excellence, and learning and complex change. The company also provides business process outsourcing solutions in the areas of business platforms, customer service outsourcing, finance and accounting, human resources outsourcing, legal services, sales and fulfillment, and sourcing and procurement outsourcing. In addition, it offers collaborative analytics solutions; digital consumer platform; Finacle universal banking solution; iProwe, a Web ac cessibility assessment product; mConnect, a real-time enterprise middleware; and research and analytical support services. Further, the company offers unified communications and collaboration solution that streamlines business processes between employees, customers, and suppliers; iTransform that helps healthcare organizations accelerate transition to new platforms; and supply chain visibility and collaboration product suite. It serves aerospace and defense, airlines, automotive, banking, capital markets, communication services, consumer packaged goods, manufacturing, education, energy, healthcare, high technology, hospitality and leisure, insurance, life sciences, logistics and distribution, publishing, resources, utilities, and retail industries. Infosys Ltd. has a strategic partnership with Alstom SA. The company was formerly known as Infosys Technologies Limited an! d changed its name to Infosys Ltd. on June 16, 2011. Infosys Ltd. was founded in 1981 and is headquartered i n Bengaluru, India.

Advisors' Opinion:

• [By Robert Martin]

  Infosys (INFY), Housing Development Finance and Reliance Industries LTD are the top three holdings, with weightings between 8% and 10.5%. Of course, just about any India ETF will have a heavy  allocation to Infosys and Reliance. However, INDA dedicates a lower percentage to energy than some of the alternatives, and instead leans more on IT and consumer spending.

• [By Aaron Smith]

  The government accused software developer Infosys (INFY) of using workers with B-1 visas, which only allow temporary entry into the U.S. for business purposes, to perform skilled labor jobs.

source from Top Stocks Blog:http://www.topstocksblog.com/top-india-companies-to-buy-for-2014.html

Top Cheapest Stocks To Buy For 2014

Top Cheapest Stocks To Buy For 2014: Unum Group(UNM)

Unum Group, together with its subsidiaries, provides group and individual disability insurance products primarily in the United States and the United Kingdom. It also provides a portfolio of other insurance products, including employer-and employee-paid group benefits, life insurance, long-term care insurance, and related services. Its products include group long-term and short-term disability; group life and accidental death, and dismemberment; individual disability; group long-term care; voluntary benefits; group life; accident, sickness, and disability; and cancer and critical illness insurance products. The company also provides individual life and corporate-owned life insurance, reinsurance pools and management operations, group pension, health insurance, and individual annuities. Unum Group markets its products primarily to employers interested in providing benefits to their employees. The company sells its products through field sales personnel, independent brokers, consultants, and agency sales force. Unum Group was founded in 1848 and is based in Chattanooga, Tennessee.

Advisors' Opinion:

• [By Rich Duprey]

  Specialty insurance provider Unum (NYSE: UNM  ) announced yesterday its third-quarter dividend of $0.145 per share, an 11% increase to the payout made last quarter of $0.13 per share.

• [By Ben Levisohn]

  Among the biggest losers in the S&P 500: Air Products and Chemicals (APD), which dropped 3.3% to $103.20 as its Bill Ackman bounce fades, Charles Schwab (SCHW), which fell 2.4% to $21.76 as it became the 165th most popular short in the S&P 500, and Unum Group (UNM), which finished off 2.3% at $29.63 after Barron’s Sandra Ward recommended investors take profits on the insurance company.

source from Top Stocks! Blog:http://www.topstocksblog.com/top-cheapest-stocks-to-buy-for-2014.html

Top Casino Stocks For 2014

Top Casino Stocks For 2014: Caribbean International Holdings Inc (CIHN)

Caribbean International Holdings Inc., formerly Caribbean Casino and Gaming Corporation, incorporated on February 12, 2009, is focused in the gaming and entertainment company. The Company has a gaming casino, located in the city of Sousa, in the Dominican Republic. In April 2012, it acquired exclusive rights to distribute Bionic Products' Energy Drinks throughout the Caribbean, South and Central America.

The Sosua Bay Grand Casino provides the gaming and entertainment experience to the Domincan Republic. It is equipped with a state of the art lighting and sound system.

Advisors' Opinion:

• [By Peter Graham]

  Small cap stocks Caribbean International Holdings (OTCMKTS: CIHN), Blue Water Global Group Inc (OTCBB: BLUU) and Metrospaces Inc (OTCMKTS: MSPC) have been getting some attention lately in various investment newsletters and all three have focused their activities in the Caribbean or South America. However, all three have been the subject of paid promotions which have helped to get them mentions in various investment newsletters. With that in mind, will bets on the Caribbean or South America pay off big for these three small cap stocks and their investors? Here is a quick reality check:

  Caribbean International Holdings (OTCMKTS: CIHN) is All About Wings, Mechanical Bulls and Stem Cells

  Formerly known as Caribbean Casino & Gaming Corp, small cap Caribbean International Holdings operates as a holding company. On Friday, Caribbean International Holdings rose 8.39% to $0.0369 for a market cap of $315,400 plus CIHN is up 985.3% over the past year and up 7,280% over the past five years according to Google Finance.

source from Top Stocks Blog:http://www.topstocksblog.com/top-casino-stocks-for-2014-2.html

Take J.C. Penney’s “Turnaround” With a Large Grain of Salt

Source:  glassdoor.com

When I first saw the headline announcing that J.C. Penney (NYSE: JCP  ) had turned a profit for the fourth quarter, I was very happy to hear the news. Who doesn't love to root for the underdog, especially a corporate icon such as J.C. Penney that many of us grew up with and adored? Unfortunately, not only did that "profit" come from a one-time tax benefit, but there are a number of other factors suggesting that the turnaround is questionable.

The rebound
On Feb. 26, J.C. Penney reported its fourth-quarter results. Net sales slipped 2.6% to approximately $3.8 billion. jcp.com sales leapt 26.3% to $381 million. Same-store sales inched up 2%. Holiday sales bumped up 3.1%. It was quite an improvement on the face of it.

The most exciting parts of the report were the optimistic commentary and outlook. For the current quarter, same-store sales are expected to be up between 3% and 5%. For the full year, J.C. Penney expects even better results, with mid-single digits in same-store sales growth.

Even better and most vital to J.C. Penney's survival was the $2 billion in liquidity it ended the year with. This was far greater than the $1.3 billion to $1.5 billion it had been predicting back in August and September.

Where it starts getting salty
This is a retail chain with daily customers and not a construction company with an order backlog. It's hard to imagine that J.C. Penney has much visibility beyond the current quarter at any given moment. Heck, it's often difficult enough for retail chains that lack severely volatile results to predict the future one quarter out.

JC Penney Corporate Office. Source: JC Penney

Now consider the fourth quarter again. Let's ignore the fact that the company is celebrating a turnaround completion with an adjusted $0.68 per-share net loss. The 3.1% growth in sales during the November-December holiday period sounds great, but we already knew same-store sales for November alone were up 10.1%. This means December was a bust.

Making matters worse, part of the reason for November's sales spike may have simply been due to the severe discounting of leftover inventory that began in October. In some cases J.C. Penney slashed prices so severely that it was selling merchandise for less than wholesale cost. That would certainly explain why November showed more growth.

It's easy to go up from the bottom
No doubt that gains are better than losses. But J.C. Penney's sales situation was already so severely beaten down that it was almost as if sales had no other place to go but up. In the year-ago period, same-store sales plunged by a shocking 31.7%. A 2% improvement, and including severe discounting, suggests little recovery from the year-ago carnage.

For jcp.com, the bright spot of the current report, revenue was up nicely on a percentage basis but still only $381 million. Not only is this a fraction of overall revenue, but it's still 21% lower than the $480 million jcp.com achieved just two years ago. Many retailers, even struggling ones, are experiencing vast increases in online sales.

The first-quarter guidance was the most encouraging. But once again it's a 3% to 5% expected gain compared to a year-ago quarter that saw a 16.4% drop in same-store sales. It's a start, sure, but it may be a bit too early to pop the champagne. Take this turnaround with a grain of salt for now until more positive evidence surfaces in the months and quarters ahead.

10 Best Gas Utility Stocks For 2015

Forget J.C. Penney's guidance and look for the next monster idea.
Opportunities to get wealthy from a single investment won't come from J.C. Penney's guidance.  In fact, they don't come around often at all, but they do exist, and our chief technology officer believes he's found one. In this free report, Jeremy Phillips shares the single company that he believes could transform not only your portfolio, but your entire life. To learn the identity of this stock for free and see why Jeremy is putting more than $100,000 of his own money into it, all you have to do is click here now.

Top Performing Companies To Buy For 2015

Top Performing Companies To Buy For 2015: Templeton Russia Fund Inc.(TRF)

Templeton Russia and East European Fund Inc. is a closed-ended mutual fund launched by Franklin Templeton Investments. It is managed by Templeton Asset Management Ltd. The fund invests in public equity markets in Russia and Eastern Europe. It focuses on investments across diversified sectors. The fund employs a value-oriented approach to invest in companies. It focuses on market price of a company's securities relative to the evaluation of the company's long-term earnings, asset value, and cash flow potential for selecting individual securities. The fund also considers positioning of security in the sector, the economic framework, and political environment to create its portfolio. Templeton Russia and East European Fund Inc was formed in June 15, 1995 and is domiciled in the United States.

Advisors' Opinion:

• [By STANSBERRYRESEARCH]

  The Templeton Russia Fund (TRF) is about to get crushed again. Stuffed with Russian oil and bank stocks, this ETF is one of the few direct Russia plays in the market... This spring, the premium on TRF hit a whopping 35%. You had to pay $1.35 for every $1 of real value. This huge overvaluation was corrected when emerging markets got obliterated in May. The Russia Fund fared the worst, falling 47% from its peak.

source from Top Stocks Blog:http://www.topstocksblog.com/top-performing-companies-to-buy-for-2015.html

Target breach ushers in new era of data security

When Target announced in December that its credit and customer records had been hacked, and news of similar breaches at other retailers followed, it was a pivotal moment for data security.

Merchants jumped to upgrade and protect their systems. Along with data security companies, payment processors and lawmakers on Capitol Hill they joined a growing chorus calling for better standards and technology to safeguard data.

Target, after acknowledging that as many as 110 million customers had personal information and card data stolen, said it would speed up its adoption of more secure payment technology. Suddenly, banks were being pressured to issue customers new cards with microchips, which have been used in Europe for more than 20 years. Congressional committees asked, with urgency, what more could be done.

TIPS: How to protect yourself from credit card fraud

John Mulligan, executive vice president and CIO of Target Corporation, arrives for testimony before the Senate Judiciary Committee Feb. 4, 2014 in Washington.(Photo: Win McNamee, Getty Images)

Though Target's hack may have been the impetus for the uproar, underlying the conversation is a threat that's been growing for years: Data hackers increasingly operating like businesses, with sophisticated networks of criminals hawking a lucrative product — our identities.

"What we've seen in the last 10 years is a professionalism increase in the hacker community," said Hugh Thompson, senior vice president and chief security strategist at Blue Coat, a security company whose technology is used by 86% of Fortune 500 companies.

Criminals, he said, are looking at return on investment, asking, "Where do I break into to get the maximum yield of monetizeable data?"

The answer h! as led hackers to the retail industry, which rings up billions of transactions a year, and collects shoppers' information and preferences to target them with specific offers that spur more purchases.

Since last July, retailers including Walmart, Walgreens, Nordstrom, Target, Neiman Marcus and Michaels have been hacked, according to a list provided to USA TODAY by Eric Chiu, president and co-founder of security company HyTrust. Chiu compiled his list from public reports of these intrusions.

Customers leave a Walgreens pharmacy in Jackson, Miss., in June 2013.(Photo: Rogelio V. Solis, AP)

HACKERS FOCUS ON RETAIL

Crooks, experts say, focus on retailers over banks and other financial institutions with their own treasure troves of consumer info because traditionally the latter more aggressively protect that data.

"The common mentality [has been] do as little around security as they can in order to just get by," Chiu said of retailers. Why? "Profit," he said. "Every company is trying to do more with less."

But retailers are beginning to realize that they can no longer accept fraud as a cost of doing business. Chiu said his company has fielded four times as many inquiries since late December as it had in the prior two months.

Banks and retailers are already in the expensive process of switching to a more secure payment method relying on credit and debit cards that work with a microchip. Payment data is stored in the chip instead of on the magnetic stripe used on current cards. The chip generates a single-use code to process only that one transaction through a merchant's server. That makes a card nearly impossible to counterfeit because even if the data is hacked, it can't be used again.

Visa and MasterCard have given banks! and reta! ilers an ultimatum of sorts, pushing them to adopt the terminals and cards necessary for chip technology by October 2015. After that, as a condition of using the payment systems run by the big credit card companies, whoever hasn't adopted the new technology will be responsible for the costs of fraud if a breach occurs on their system.

A MasterCard sign on a revolving door in New York.(Photo: Mark Lennihan, AP)

Some retailers are also pushing for the adoption of personal identification numbers to authenticate transactions instead of relying on signatures, as many credit card payments do now.

"The signature is essentially worthless, because anybody can write (your name) on the back of a card or slip," said Mallory Duncan, chief legal counsel for the National Retail Federation.

Today, the issuing bank decides whether to give a customer a PIN with their card or allow them to sign for purchases.

The transition to "chip and pin" cards has gotten the most attention, but security experts say that move alone won't be enough to keep company networks secure and personal data out of the hands of cyber criminals.

"People are treating chip and pin as an ambrosia, and that's completely ridiculous," said Daimon Geopfert, national leader for security and privacy consulting at consulting firm McGladrey. "Everybody moves to new technology, and what do you think the attackers do? They just move to the new technology."

MITIGATING THE DAMAGE

Chiu and Blue Coat's Thompson say there is too much emphasis on trying to keep hackers out of systems when companies need to assume hackers have already gotten in, and work on mitigating the damage.

"It's always been an escalation of arms," Thompson said. "Attackers advance, defenders advance.! I think ! what we're moving to in the security industry is this idea that, yes, we're going to continue to advance around prevention, but we're also going to build a strong competency in being able to recover quickly if an attack does occur."

Companies also need to closely monitor and limit employee access to company networks and make sure any sensitive data — from patient records to credit card numbers — is encrypted to make it unreadable, which most companies don't do, Chiu said.

A more immediate step might also be to encrypt credit card data as soon as a card is swiped through a store's card reader, a process known as point-to-point encryption. It's an upgrade that wouldn't cost as much or take as long to start using as chip and pin technology, Geopfert said. Today encryption typically occurs further down the line of payment processing, leaving the data unencrypted for a "nanosecond" and making it easier to steal, he said.

ASLEEP AT THE WHEEL

Some security leaders argue that businesses need to do a better job meeting the security standards they're already required to follow — and staying on top of them. In order to accept credit and debit cards, businesses have to comply with 12 security standards set by the Payment Card Industry Security Standards Council, an organization founded in 2006 by the major card processors. The standards include changing the default passwords that initially come with security systems, encrypting data that travels across public networks and keeping anti-virus software up to date.

But companies have to report their compliance with PCI standards only once a year, and they may not necessarily remain compliant the rest of the time. In most cases, hackers steal information from companies that haven't kept up with PCI standards year-round, said Bob Russo, general manager of the standards council.

"Ninety-nine percent of what we're seeing is attacks with known fixes," Russo said. "For whatever reason, the ball got dropped."

A report out this m! onth fro! m Verizon finds that many businesses fail to stay compliant 100% of the time.

"Criminals only need one chink in your company's armor to get in," the Verizon report says. "Some companies still treat compliance as a one-off annual scramble. ... But if you don't work at compliance, just one new uncontrolled Wi-Fi access point, unprotected admin account or unencrypted drive could take you out of compliance."

THE END OF CREDIT CARDS?

The retail federation's Duncan even suggests that cards as a payment option could become useless if banks and retailers can't agree on the best way to adopt the chip-based cards and readers.

A group of merchants including Walmart, Target, Gap and Sears are collaborating on a mobile payments network called MCX, for Merchant Customer Exchange, that would rely on mobile phones instead of plastic cards to complete transactions.

"No one is going to spend money on systems that don't protect their customers," Duncan said. "Realistically, they're going to look for other alternatives, like mobile, that will protect their customers and reduce fraud, and the card systems will make themselves irrelevant."

Some shoppers have cut back on their card use already, opting to pay with cash for smaller purchases, while others have become more diligent in monitoring financial accounts.

Levi Zimmer, 27, wasn't directly affected by the Target data breach, but had family members who were. Since then, he's started using cash for groceries, restaurants, bars and drugstore purchases — generally for anything that costs less than $200.

Levi Zimmer(Photo: handout)

"I know it only takes one breach at one store, but if I can limit the times I use plastic, maybe I can be spared," said Zimmer, who lives in North Ma! nkato, Mi! nn. "I will probably continue carrying cash until that time I get punched and robbed with $200 in my pocket. One way or another, thieves are going to steal."