Walmart enters the auto insurance business

Walmart is entering the auto insurance business in its latest move to offer affordable financial services to customers, the company announced Wednesday.

The world's largest retailer is partnering with AutoInsurance.com, a price-comparison and shopping website. The website was created after Walmart approached parent company Tranzutary Insurance Solutions with the idea to create an integrated auto insurance service that lets consumers shop for and purchase policies on one site, instead of directing them to the individual sites of specific insurance providers when they're ready to buy.

After piloting the service last year in Pennsylvania, it's now available in eight states, with plans to roll out nationwide in the coming months. The site pulls in your existing insurance policy and lets you compare rates across companies including Progressive, Travelers, Esurance and Safeco. It allows shoppers to buy policies directly from AutoInsurance.com.

"This is something Walmart had been studying and hearing a lot from their customers on," says Daniel Eckert, senior vice president of services at Walmart. "As we started to investigate what was out there in the marketplace, there was no simple, accessible, transparent way to do auto insurance."

Walmart does not operate the service but will serve as the sole marketing partner to promote the website. Walmart will have displays in store entrances and in store aisles, as well as promote the service on its own website. It will receive monthly payments for each store where the service is promoted, Eckert says.

In a survey of customers who participated in the pilot last year, Walmart found the average savings of those who bought policies through AutoInsurance.com was more than $1,100 a year.

The insurance service is the most recent of Walmart's continually expanding financial services offerings. Earlier this month, Walmart announced a new money-transfer service that allows customers to transfer and pick up money between Walmart stores across ! the country. The service comes with two pricing tiers and charges less than $10 for up to $900 in transfers. Competitors can charge up to $75 to transfer the same amount, Walmart says. Walmart already offers money transfers through MoneyGram.

On a call with media on Tuesday, Eckert said the retailer is also testing a life insurance service with Tranzutary Insurance Solutions in South Carolina and Georgia.

Still, financial services are just a small part of the company's overall revenue, says Ken Perkins, an equity analyst with Morningstar. Walmart's strategy in the financial services sector is likely more about contributing to consistent messaging.

"It's not really a driver of the business," Perkins says. "But if the company is trying to communicate (that) it's a low-cost provider and looking out for its customer first ... these are easy ways to hit that home."

A Walmart bank may not be out of the question — it's not unheard of in retail, Perkins says. Canada's largest retail company, Loblaw Companies Limited, operates its own bank — but positioning itself to continue to compete on price and product offerings with the likes of Amazon and dollar stores is probably a more immediate priority.

The financial services "are kind of add-ons," Perkins says.

A Relative Strength Play With Big Insider Buying

DELAFIELD, Wis. (Stockpickr) -- The market continues to struggle today, and that weakness is most notable with technology stocks, or stocks that trade on the Nasdaq exchange.

>>5 Stocks Ready to Pop on Bullish Earnings

The Nasdaq Composite is trending lower right now by around 25 points, or by 0.5%, to just under 4,060. Traders continue to puke up technology stocks despite the recent strong earnings reports from iPhone maker Apple (AAPL) and social media giant Facebook (FB).

If you take a look at the chart for the PowerShares QQQ Trust (QQQ), an ETF that tracks the Nasdaq 100 Index, you'll see that it has been downtrending over the last two months, with shares moving lower from its high of $91.15 to its recent low of $83.28 a share. The QQQ recently bounced sharply off that $83.28 low right up to its 50-day moving average, but this technology ETF has started to fail at it 50-day and once again is heading lower. A test of the 200-day moving average on the QQQ at just below $83 seems likely now.

>>5 Stocks Poised for Breakouts

Since the Nasdaq is weak and clearing in a medium-term downtrend, I am doing my scans and looking for names that trade on that exchange that are showing relative strength and not going down today. These names could be the next stocks to make sharp moves higher since the bears are gaining little traction in taking them down in a weak environment. Relative strength is a momentum investing strategy that compares the performance of a stock with the overall market or the index it trades on.

One Nasdaq-based name that's showing relative strength today in the face of the index's weakness is Sears Holdings (SHLD), a retailer with 2,172 full-line and 1,338 specialty retail stores in the U.S. operating through Kmart Holding Corporation and Sears, and 500 full-line and specialty retail stores in Canada operating through Sears Canada, a 95%-owned subsidiary. Over the last three months, shares of SHLD have trended higher by 12% vs. the Nasdaq composite, which has dropped by 1.4%.

Shares of SHLD are trading higher today by 3.8% to just over $43 with decent upside volume. The volume so far has eclipsed 1.11 million shares, which is getting very close to its three-month average volume of 1.56 million shares. The relative strength performance is worth following here for shares of SHLD, but another thing that should make traders perk up is the recent large insider buy. Company director Thomas Tisch recently bought 475,000 shares, or about $15.9 million worth of stock, at $33.40 to $33.60 per share. Tisch holds about 3.7 million shares of SHLD, which makes him one of its largest shareholders.

>>5 Stocks Under $10 Set to Soar

Another reason that traders should put this relative strength name on their trading radar is due to the large short interest in the stock. The current short interest as a percentage of the float for SHLD is very high at 36.8%. That means that out of the 43.35 million shares in the tradable float, 15.59 million shares are sold short by the bears. That is a monster short interest on a stock with a relatively low tradable float. The shorts who're heavily involved in this stock have failed to take it lower during the recent weakness in the Nasdaq. That could be a signal that shares of SHLD are slipping out of the control of the bears and the stock is setting up to trend much higher.

Sears Holdings is not performing very well from a fundamental perspective. This company has reported 28 consecutive quarters of sales declines, with a loss of close to $1.4 billion last year. There doesn't look to a turnaround for Sears Holdings anywhere on the horizon, but the company and the stock might be attractive here for other reasons. Some speculation has entered the market that Amazon.com (AMZN) would be wise to buy Sears Holdings for its vast real estate assets and other retail synergies. I doubt that happens, but what's more likely to occur is that Sears Holdings continues to spin off and sell assets and real estate like it recently did with its Lands End (LE) unit.

>>5 Rocket Stocks to Buy for May Gains

From a technical perspective, shares of Sears Holdings have been uptrending strong over the last few weeks, with shares moving higher from its low of $31.26 to its recent high of $44.67 a share.

During that uptrend, shares of SHLD have been consistently making higher lows and higher highs, which is bullish technical price action. The recent run for SHLD has now pushed the stock back above both its 50-day and 200-day moving averages, which is bullish. This move is quickly pushing shares of SHLD within range of triggering a near-term breakout trade.

Traders should look for long-biased trades in SHLD if it manages to break out above some near-term overhead resistance at $44.67 a share with high volume. Look for volume on that move that registers near or above its three-month average action of 1.56 million shares. If that breakout materializes soon, then SHLD will set up to re-test or possibly take out its next major overhead resistance levels at $52.50 to $56 a share. Any high-volume move above those levels will then give SHLD a chance to make a run at its next major overhead resistance levels at $62.57 to its 52-week high at $67.50 a share.

Market players can look for long-biased trades in SHLD off weakness as long as it's trending above its 200-day at $39.22 or its 50-day at $37.05 a share. One could also look to buy SHLD off strength once it takes out $44.67 a share with volume and then simply use a stop that's a comfortable percentage point from your entry.

-- Written by Roberto Pedone in Delafield, Wis.

RELATED LINKS:

>>3 Stocks Breaking Out on Unusual Volume

>>4 Hot Tech Stocks to Trade (or Not)

>>5 Mega-Cap Stocks to Trade for Gains

Follow Stockpickr on Twitter and become a fan on Facebook.

At the time of publication, author had no positions in stocks mentioned.

Roberto Pedone, based out of Delafield, Wis., is an independent trader who focuses on technical analysis for small- and large-cap stocks, options, futures, commodities and currencies. Roberto studied international business at the Milwaukee School of Engineering, and he spent a year overseas studying business in Lubeck, Germany. His work has appeared on financial outlets including

CNBC.com and Forbes.com. You can follow Pedone on Twitter at www.twitter.com/zerosum24 or @zerosum24.

ELS Stock: Live Large With This REIT

Popular Posts: 3 High-Yield Stocks on the Road Less TraveledAMZN Stock: What Do Amazon Earnings Have in Store?Why Retirement Investors Should Always Hold Energy Stocks Recent Posts: Rent-to-Own Stocks Look Compelling ELS Stock: Live Large With This REIT Why Retirement Investors Should Always Hold Energy Stocks View All Posts

Just imagine nice houses with resort-style amenities, situated in a nice community, probably with a pool — and maybe even a golf course nearby.

I'm talking about manufactured home communities. In the case of Equity LifeStyle Properties (ELS), 70% are communities for those 55 years of age or older. It's a great niche, and this REIT has grown into 370 communities and resorts in 32 states and British Columbia, which contain 140,000 actual sites. The properties certainly look nice on the company's home page, and community living for seniors has taken on increased popularity over the past twenty years.

This is the kind of operation that I like, because once someone moves into a community like this, they are very likely to remain for quite some time. Not that someone who chooses to move out won't get replaced by another buyer (the average home cost is only $75,000), but the company reduces its market price risk by effectively capturing long-term homeowners.

And because ELS stock must pay out 90% of income as a dividend anyway, it's particularly reassuring to know that such income should be relatively consistent.

ELS stock just reported results for Q1. Funds from operations increased $6.4 million to $71.4 million (78 cents per share), compared to $65.0 million, year-over-year. Net income increased $3.1 million to $38.1 million, or 46 cents per share. That's a solid gain of 10% across the board.

These increases came on rather modest revenue gains in the 6% range. ELS stock reports "property operating revenues," which increased $10.5 million to $186.4 million. Income from property operations increased $6.7 million to $111.0 million.

A big concern for most REITs is mortgage debt. Equity LifeStyle's debt structure is prudent, and the company is always trying to pay off more expensive debt and/or replace it with lower-cost debt. In fact, ELS stock paid off $20.7 million in mortgages in Q1, which carried a 5.63% weighted average interest rate. That was done in conjunction with a year-long refinance, which netted the company $430 million in proceeds at a mere 4.54% weighted average.

The best part is that the debt doesn't mature until 2034 at the earliest. That's the beauty of mortgage debt: It costs very little, so if a company can generate more than enough revenue to pay that debt and make money to boot, it's a real business.

And the company is indeed able to cover those interest payments — almost four times over. ELS also has a cash backstop of $56 million and continues to expand via acquisition. It completed two purchases in the quarter for $61 million. The advantage of this niche market is that an entire community can be scooped up for eight figures, from which multiples can be earned over the life of the property.

With a 3.2% dividend yield and a solid business model, ELS stock is a good choice for core and retirement portfolios alike.

Lawrence Meyers does not own any security mentioned.

Hot Specialty Retail Companies To Own For 2015

The specialty retailer announced solid second quarter results August 21. PetSmart's (Nasdaq:PETM) future seems exceptionally bright. Its stock, however, is another story up just 1% over the past 52 weeks. Is now the time to buy? I'll have a look.

Past Performance
Although the past year hasn't been particularly kind to PetSmart's stock; the same can't be said for the past decade. It's achieved an annualized total return over the past 10 years of 13.2%, 600 basis points higher than the S&P 500 and 325 basis points higher than its specialty retail peers. It's currently trading within 5% of its all-time high of $75.15. In every way it's done what you'd want a stock to do over the long haul.

So why has its stock stalled?

I suspect Barron's May 21 article that brought up investor concerns about online competition was enough to spook anyone considering taking a position. It certainly can't be its financial results. In the first and second quarters it beat earnings per share by two and three cents respectively. In terms of revenues, it missed the Q2 consensus estimate of $1.712 billion by $6 million and the Q1 consensus estimate of $1.72 billion by $10 million. Investors chose to ignore the fact PetSmart increased revenue by 5.3% in Q2 year-over-year and by 5% in Q1. Instead they've hung their hat on a combined revenue miss of $16 million in the first two quarters of the fiscal year��ess than 1% of $3.43 billion in revenue. That's just silly.

Hot Specialty Retail Companies To Own For 2015: West Marine Inc (WMAR)

West Marine, Inc., incorporated in September 1993, is a specialty retailer of boating supplies and accessories. The Company offers an assortment of merchandise for the boat and for the boater. It operates in three segments: Stores, Port Supply and Direct-to-Customer. The Company sells to both retail and wholesale customers in its Stores segment. In addition, the Company has three franchised stores in Turkey. The Company�� Port Supply segment is its wholesale segment. The Company�� Direct-to-Customer, which includes e-commerce, catalog and call center transactions. During the year ended December 31, 2011, Stores segment generated approximately 90% of its net revenues. During 2011, products shipped to Port Supply customers directly from its warehouses represented approximately 4% of its net revenues.

During 2011, its Direct Sales segment offered customers around the world more than 75,000 products and accounted for the remaining 6% of its net revenues. Private label products, which the Company sells under the West Marine, Black Tip, Third Reef, Pure Oceans, Lifesling, SeaVolt and Seafit brand names, usually are manufactured in Asia, the United States and Europe.

Stores Segment

During 2011, the Company opened six stores while closing 14 stores. In December 2011, it opened its Fort Lauderdale Boating Superstore, a 50,000 square foot flagship. Its flagship stores ranging in size from 21,000 to 50,000 square feet, offering an array of merchandise typically about 16,000 items, as well as displays designed to help customers make informed product selections. It also operates large format stores, standard-sized stores and smaller Express stores. Its large format stores range from 13,000 to 19,000 square feet and carry about 11,000 items. The standard-sized stores typically range from 6,000 to 12,000 square feet and carry over 6,000 items. Express stores typically range from 2,500 to 3,000 square feet and carry over 4,000 items, mainly hardware and other supplies needed! for day-to-day boat maintenance and repairs.

Port Supply Segment

Port Supply customers include businesses involved in boat sales, boat building, boat commissioning and repair, yacht chartering, marina operations and other boating-related activities. In addition, Port Supply sells to government and industrial customers who use its products for boating and non-boating purposes. Port Supply, the Company�� wholesale segment, serves wholesale customers seeking convenience and a larger assortment of products than those carried by typical distributors.

Direct-to-Customer Segment

The Company�� e-commerce Website provides its customers with access to a selection of approximately 75,000 products, product advisor tips and technical information, over 450 product videos and customer-submitted product reviews. This segment also provides customers with access to knowledgeable technical advisors who can assist its customers in understanding the various uses and applications of the products it sell. It operates a virtual call center from which its associates assist its customers by taking calls from their homes or from its support center in Watsonville, California. Its virtual call center supports sales generated through its e-commerce Website, catalogs and stores and provides customer service offerings.

Advisors' Opinion:

• [By Interactive Buyside]

  West Marine (Nasdaq: WMAR) is an undervalued retailer.  The company is going through a change in focus from a bricks and mortar boat product retailer to a fully integrated retail and wholesale business through bricks and clicks, targeting the boating and water enthusiast customer.   Recent results have been affected by a severe rainy and cool spring which hurt boat usage and delayed the start of the season.  The company has accelerated cash investments to build larger more productive stores and expand its ecommerce abilities, consequently affecting free cash flow short term.  The stock lacks sponsorship as there is only one research report written on the company by a small boutique firm.  The stock trades at only book value despite the company being the leading industry player with a solid balance sheet and significant net cash position. 

Hot Specialty Retail Companies To Own For 2015: Firstin Wireless Technology Inc (FINW)

Firstin Wireless Technology, Inc., formerly Passionate Pet, Inc., incorporated on September 30, 2010, is a mobile service provider. The Company is a software-based mobile service provider that enables enterprises and business users to make affordable and business-quality international long distance and roaming calls over its hybrid mobile VoIP (HY-mVoIPTM) technology. Its service does not replace a user�� existing wireless service, it augments it with global communication capabilities. The Company's application is free to download, and is available on Apple iPhone, Blackberry and Android smartphones.

The Company provides international long distance and roaming services to enterprises and business travelers over smartphones. Business users need to download the Firstin application onto their smartphones to allow them to place and receive international long distance and roaming calls from anywhere in the world for a fixed monthly fee and unlimited usage. The Company intends to revolutionize business mobile communications by spearheading the enterprise mobile VoIP revolution allowing for anywhere, anytime, business-quality and low-cost voice and data communications over smartphones.

Advisors' Opinion:

• [By Peter Graham]

  A look at SofTech, Inc�� financials reveals revenues of $1,375k (most recent reported quarter), $1,558k, $1,458k and $1,772k for the past four quarters along with net losses of $266k (most recent reported quarter), $51k and $14k and net income of $252k. At the end of August, SofTech, Inc had $828k in cash to cover $2,717k in current liabilities and $5,445k in total liabilities. Given the recent Asset Purchase Agreement and the deal with lenders, it would be good to wait for some more financials to see how SofTech, Inc�� balance sheet has improved.

  Firstin Wireless Technology Inc (OTCMKTS: FINW) Has Been Quiet Since February

  Small cap Firstin Wireless Technology is a mobile communications company that is leading the shift to the enterprise mobile VoIP revolution through its mobile telephony platform and apps, including a flagship Firstin solution that allows for anywhere, anytime mobile communications at significant cost reductions. On Friday, Firstin Wireless Technology closed at $0.255 for a market cap of $8.57 million plus FINW is down 3,087.5% over the past year and down 78.7% since August 2011 according to Google Finance.

Top International Companies To Buy Right Now: FTD Companies Inc (FTD)

FTD Companies, Inc. (FTD), incorporated on April 25, 2008, is a floral and gifting company. The Company provides floral, gift and related products and services to consumers and retail florists, as well as to other retail locations offering floral and gift products primarily in the United States, Canada, the United Kingdom, and the Republic of Ireland. The Company operates in one segment, which includes floral and related products and services. Its business uses the FTD and Interflora brands, both supported by the Mercury Man logo. The Company�� portfolio of brands also includes Flying Flowers, Flowers Direct, and Drake Algar in the United Kingdom. On November 1, 2013, United Online, Inc. (United Online) completed the separation of United Online into two independent, publicly traded companies: FTD Companies, Inc. and United Online, Inc.

The Company�� products revenues are derived primarily from selling floral, gift and related products to consumers and the related shipping and service fees. Products revenues also include revenues generated from sales of hard goods, software and hardware systems, cut flowers, packaging and promotional products, and a range of other floral-related supplies to floral network members. Its services revenues related to orders sent through the floral network are variable based on either the number of orders or on the value of orders and are recognized in the period in which the orders.

Advisors' Opinion:

• [By John Udovich]

  As we head towards Black Friday, small cap specialty retail stocks United Online, Inc (NASDAQ: UNTD), TravelCenters of America LLC (NYSE: TA) and MarineMax, Inc (NYSE: HZO) have the distinction of being the best performing small cap�specialty retail stocks for this year (according to Finviz.com) with gains of 181.2%, 123.8% and 71.8%, respectively. With those returns in mind, what are these small cap specialty retail stocks doing right and will the performance last through the all important holiday season? Here is what new and existing investors and traders alike need to know or consider:

  United Online, Inc.�A provider of consumer products and services over the Internet, United Online�� Content & Media segment services are online nostalgia (Memory Lane) and online loyalty marketing (MyPoints) while its�primary Communications segment services are Internet access and email (NetZero and Juno). The reason United Online is among the�best performing specialty retail stocks for this year in various stock screening tools like Finviz.com�is actually misleading as the company has just completed the spin off�of subsidiary FTD Companies, a floral and gifts products company acquired in August 2008 for $441 million, as�FTD Companies Inc (NASDAQ: FTD) where United Online shareholders received one share of FTD common stock for every five shares of United Online common stock they hold. In addition, United Online completed�a�one-for-seven reverse stock split of United Online shares.�On Tuesday, small cap United Online, Inc fell 1.01% to $15.72 (UNTD has a 52 week trading range of $11.65 to $62.30 a share) for a market cap of $207.79 million plus the stock is up 181.2% since the start of the year and up 182.2% over the past five years. Meanwhile, the FTD Companies Inc�now has a�market cap of $611.60 and the stock is up almost 6% since October.

Hot Specialty Retail Companies To Own For 2015: Puget Technologies Inc (PUGE)

PUGET TECHNOLOGIES, INC., incorporated on March 17, 2010, is a development-stage company. The Company is engaged in the distribution of luxury wool bedding sets produced in Germany. The Company�� product includes Lama Wool, Camel Wool, Cashmere Wool and Merino Wool.

The Company�� Lama Wool is consists of 50% Lama Wool hair, and 50% Merino wool hair. The Camel wool is consists of 50% Camel wool hair, and 50% Merino wool hair. The Cashmere wool is blended with Merino wool.

Advisors' Opinion:

• [By Peter Graham]

  Small cap stocks Inscor, Inc (OTCMKTS: IOGA), Puget Technologies Inc (OTCBB: PUGE) and PTA Holdings Inc (OTCMKTS: PTAH) have all been getting some attention lately in various investment newsletters or investor alerts. However, two of these small caps have been the subject of paid promotions while the third is getting attention largely because its in the growing marijuana or cannabis business. With that in mind, are these stocks really all that hot or not? Here is a quick reality check:

Hot Specialty Retail Companies To Own For 2015: Natural Grocers By Vitamin Cottage Inc (NGVC)

Natural Grocers by Vitamin Cottage, Inc., incorporated on April 9, 2012, is a specialty retailer of natural and organic groceries and dietary supplements. The Company operates within the natural products retail industry. The Company offers products and brands, including a selection of natural and organic food, dietary supplements, body care products, pet care products and books.

The Company offers its customers an average of approximately 18,000 store-keeping units (SKUs) of natural and organic products per store, including an average of approximately 7,000 SKU of dietary supplements. As of June 30, 2012, the Company operated 55 stores in 11 states, including Colorado, Idaho, Kansas, Missouri, Montana, Nebraska, New Mexico, Oklahoma, Texas, Utah and Wyoming, as well as a bulk food repackaging facility and distribution center in Colorado. The size of its stores varies from 5,000 selling square feet to 14,500 selling square feet, and a new store averages 9,500 selling square feet.

Advisors' Opinion:

• [By David Mamos]

  The Fresh Market Inc. (Nasdaq: TFM), Natural Grocers by Vitamin Cottage Inc. (NYSE: NGVC), and privately held Trader Joe's are others crowding into the field.

• [By John Udovich]

  Small cap Natural Grocers by Vitamin Cottage (NYSE: NGVC) and mid cap Sprouts Farmers Market Inc (NASDAQ: SFM) are taking aim at natural and organic foods supermarket giant Whole Foods Market (NASDAQ: WFM), but do either of these stocks have what it takes to take on the the king of organic retailing? Whole Foods Market was founded in Austin way back in 1978 by a�twenty-five year old college dropout and a twenty-one year old�at a time when there were only a handful of natural or organic�supermarkets in the country. Today, Whole Foods Market�has 364 stores in the United States, Canada and the United Kingdom���which are sometimes referred to as ��hole Wallet��r ��hole Paycheck��given how much it costs to shop there.

Hot Specialty Retail Companies To Own For 2015: Ulta Salon Cosmetics and Fragrance Inc (ULTA)

Ulta Salon, Cosmetics & Fragrance, Inc. (Ulta), incorporated on January 9, 1990, is a beauty retailer, which provides one-stop shopping for prestige, mass and salon products and salon services in the United States. During the year ended January 28, 2012 (fiscal 2011), the Company opened 61 new stores. It operates full-service salons in all of its stores. Its Ulta store format includes an open and modern salon area with approximately eight to 10 stations. The entire salon area is approximately 950 square feet with a concierge desk, skin treatment room, semi-private shampoo and hair color processing areas. Each salon is a full-service salon offering hair cuts, hair coloring and permanent texture, with salons also providing facials and waxing.

The Company offers products in the categories, such as cosmetics, which includes products for the face, eyes, cheeks, lips and nails; haircare, which includes shampoos, conditioners, styling products, and hair accessories; salon styling tools, which includes hair dryers, curling irons and flat irons; skincare and bath and body, which includes products for the face, hands and body; fragrance for both men and women; private label, consisting of Ulta branded cosmetics, skincare, bath and body products and haircare, and other, including candles, home fragrance products and other miscellaneous health and beauty products. The Company has combined its three operating segments: retail stores, salon services and e-commerce, into one reportable segment.

The Company competes with Macy��, Nordstrom, Sephora, Bath & Body Works, CVS/pharmacy, Walgreens, Target, Wal-Mart, Regis Corp., Sally Beauty and JCPenney salons.

Advisors' Opinion:

• [By Rick Munarriz]

  Ulta Beauty (NASDAQ: ULTA  ) is a fast-growing chain of 550 stores that sell beauty products and offer salon services. Net sales soared 25% last year, fueled by a healthy expansion activity and an 8.8% spike in comps.

• [By Chris Hill]

  lululemon athletica (NASDAQ: LULU  ) fell again as the fallout continues from Christine Day's decision to resign as CEO. Boston Beer's (NYSE: SAM  ) hard cider brand earned the brewer an upgrade from Goldman Sachs (NYSE: GS  ) . Ulta Salon's (NASDAQ: ULTA  ) first-quarter profits rose 20% as same-store sales improved. And Herbalife (NYSE: HLF  ) says it has nearly 8 million customers in the United States. In this installment of Investor Beat, Jeff and Bryan discuss four stocks making big moves.

• [By Caroline Bennett]

  Want to make a pretty stock selection? Makeup company Ulta (NASDAQ: ULTA  ) may be just the company to help beautify your portfolio. During its latest earnings call, it revealed that several key financial metrics have jumped impressively.

• [By Sue Chang]

  Ulta Salon Cosmetics & Fragrance Inc. (ULTA) �is projected to post fourth-quarter earnings of $1.07 a share.

Hot Specialty Retail Companies To Own For 2015: Vitamin Shoppe Inc (VSI)

Vitamin Shoppe, Inc., incorporated on September 27, 2002, is a specialty retailer and direct marketer of vitamins, minerals, herbs, specialty supplements, sports nutrition and other health and wellness products. During the fiscal year ended December 29, 2012 (fiscal 2012), the Company marketed over 400 different brands, as well as its own brands, which include Vitamin Shoppe, BodyTech and True Athlete. The Company sells its products through two segments: retail and direct. In the Company's retail segment, the Company had a total of 286 new stores during the fiscal 2012. As of January 26, 2013, the Company operated 579 stores in 42 states, the District of Columbia, Puerto Rico and Ontario, Canada, primarily located in high-traffic regional retail centers. In the Company's direct segment, the Company sells its products directly to consumers through the Internet, primarily at www.vitaminshoppe.com. On February 14, 2013, Vitamin Shoppe Mariner, Inc. acquired Super Supplements, Inc.

Retail

The Company's retail segment includes its retail store format. Its retail stores are is located in diverse geographic and demographic markets, ranging from urban locations in New York City, to suburban locations in Plantation, Florida and Manhattan Beach, California. As of January 26, 2013, the Company leased the property for all of its 579 stores. The Company's primary warehouse and distribution center and corporate headquarters are consolidated into a leased, 230,000 square-foot facility.

Products

The Company offers a selection of vitamins, minerals, herbs, homeopathic remedies, specialty supplements, such as fish oil, probiotics, glucosamine and Co Q10, sports nutrition, weight management, as well as natural bath and beauty, pet supplements and options for a healthy home. The Company's offers includes approximately 17,500 stock keeping units (SKUs) from over 400 brands. The Company offers products to its assortment in its Vitamin Shoppe, BodyTech, True Athlete and O! ptimal Pet brands, which include products, such as Ultimate Man, Ultimate Women, Whey Tech Pro 24 and Natural Whey Protein. The Company also offers an assortment from national brands, such as Optimum Nutrition, USP Labs, Garden of Life, Cytosport, Nature's Way, Solaray and Solgar. This assortment is designed to provide the Company's customers with a selection of available product in order to help them achieve their health and wellness goals.

The vitamin and mineral product category includes multi-vitamins, which many consider to be a foundation of a healthy regimen, lettered vitamins, such as Vitamin A, C, D, E, and B-complex, along with trace minerals, such as calcium, magnesium, chromium and zinc. Certain herbs can be taken to help support specific body systems, including ginkgo to support brain activity and milk thistle to help support liver function, as well as other less common herbs, such as holy basil for stress support and blood sugar control and black cohosh for menopause support. Herbal products include whole herbs, standardized extracts, herb combination formulas and teas.

Categories of specialty supplements include omega fatty acids, probiotics and condition specific formulas. Certain specialty supplements, such as organic greens, psyllium fiber and soy proteins, are taken for added support during various life stages. Folic acid is specifically useful during pregnancy. Super antioxidants, such as coenzyme Q-10, grapeseed extract and pycnogenol, are taken to address specific conditions. High ORAC (oxygen radical absorptive capacity) fruit concentrates like gogi, mangosteen, pomegranate and blueberry are taken to prevent oxygen radical damage. Other specialty supplement formulas are focused to support specific organs, biosystems and body functions. The Company offers approximately 3,000 SKUs in sports nutrition.

The Company's other category include natural beauty and personal care, diet and weight management supplements, natural pet food, and low carb foo! ds. Natur! al beauty and personal care products offer an alternative to traditional products that often contain synthetic and/or other ingredients that the Company's customers find objectionable. The Company offers approximately 3,000 SKUs for its other category. The Company's natural pet products include nutritionally balanced foods and snacks along with condition specific supplements such as glucosamine for joint health. Its variety of diet and weight management products range from low calorie bars, drinks and meal replacements to energy tablets, capsules and liquids.

The Company competes with Vitamin World, GNC, Whole Foods, Costco, Wal-Mart, Rite-Aid, Walgreens, Amazon.com, Puritan's Pride, Vitacost.com, Bodybuilding.com, Doctors Trust, Swanson and iHerb.

Advisors' Opinion:

• [By John Udovich]

  Vitamin Shoppe Inc (NYSE: VSI), Books-A-Million, Inc (NASDAQ: BAMM) and Perfumania Holdings, Inc (NASDAQ: PERF) have the dubious distinction of being�the worst performing small cap�specialty retail stocks for this year (according to Finviz.com) with losses of 4.85% and�3% and a gain of 0.61%, respectively, since the start of the year (See my previous article: This Year�� Best Performing Small Cap Specialty Retail Stocks? UNTD, TA & HZO). I should mention that the definition of specialty retail stocks might vary from one stock screener to another, but what�� clear is that these three small cap retail stocks have been heading in the wrong direction for investors for much of this year. �With that in mind, what sort of performance should investors expect from these small cap specialty retail stocks on Black Friday and for the all important holiday season? Here is what you need to be aware of:

• [By Brian Pacampara]

  Sales growth this last quarter was up only about 6%, but net income per share was up 21%. They pay a $0.60 dividend which gives them a dividend yield of 1.4%. Their cash flow yield is 4.6%, so they could easily raise their dividend. They are by far the leader in a very fragmented industry. I believe both [Vitamin Shoppe (NYSE: VSI  ) ] and GNC will do well and I think they may make a fair pairing in a portfolio. Stability versus growth.
  
  They do have $1.1 billion in debt. But they generate about $200 million in cash flow a year and they have $174 million in cash, so that shouldn't be a problem. Their cash flow is very high, so in my opinion, is reason enough to believe they will beat the S&P 500 over the next ten years.

• [By Jeremy Bowman]

  What: Shares of the Vitamin Shoppe (NYSE: VSI  ) were looking under the weather today, falling as much as 10% after a disappointing earnings report.

Hot Specialty Retail Companies To Own For 2015: Barnes & Noble Inc (BKS)

Barnes & Noble, Inc. (Barnes & Noble), incorporated on November 19, 1986, is a bookseller. The Company is a content, commerce and technology company that provides customers access to books, magazines, newspapers and other content across its multi-channel distribution platform. As of April 27, 2013, it operated 1,361 bookstores in 50 states, 686 bookstores on college campuses, and operates one of the Web eCommerce sites, and develops digital content products and software. Barnes & Noble operates in three segments: B&N Retail, B&N College and NOOK. The Company�� principal business is the sale of trade books (generally hardcover and paperback consumer titles), mass market paperbacks (such as mystery, romance, science fiction and other popular fiction), children�� books, eBooks and other digital content, NOOK and related accessories, bargain books, magazines, gifts, cafe products and services, educational toys & games, music and movies direct to customers through its bookstores or on barnesandnoble.com.

Of the Company�� 1,361 bookstores, 675 operate primarily under the Barnes & Noble Booksellers trade name. Barnes & Noble College Booksellers, LLC (B&N College), a wholly owned subsidiary of Barnes & Noble, operates 686 college bookstores at colleges and universities across the United States. Barnes & Noble Retail (B&N Retail) operates the 675 retail bookstores. Retail also includes the Company�� eCommerce site and Sterling Publishing Co., Inc. (Sterling or Sterling Publishing), a leader in general trade book publishing.

B&N Retail

This segment includes 675 bookstores as of April 27, 2013, primarily under the Barnes & Noble Booksellers trade name. These stores generally offer a dedicated NOOK area, a comprehensive trade book title base, a cafe, and departments dedicated to Juvenile, Toys & Games, DVDs, Music, Gift, Magazine and Bargain products. The stores also offer a calendar of ongoing events, including author appearances and children�� activities. The B&! N Retail segment also includes the Company�� eCommerce website, barnesandnoble.com, and its publishing operation, Sterling Publishing. Barnes & Noble stores range in size from 3,000 to 60,000 square feet depending upon market size, with an overall average store size of 26,000 square feet. During the fiscal year ended April 27, 2013 (fiscal), the Company reduced the Barnes & Noble store base by 0.3 million square feet, bringing the total square footage to 17.7 million square feet. The Company�� B&N Retail segment purchases physical books on a regular basis from over 800 publishers and over 50 wholesalers or distributors. As of April 27, 2013, Barnes & Noble had stores in 162 of the total 210 Designated Market Area markets.

Sterling Publishing is a publisher of non-fiction trade titles. It is a range of non-fiction and illustrated books and kits across a range of imprints, in categories, such as health and wellness, music and culture, food and wine, crafts and photography, puzzles and games, history and current affairs, as well as a children�� books.

B&N College

B&N College sells new and used textbooks in campus bookstores and online. As of April 27, 2013, B&N College operated 686 stores nationwide. The Company�� customer base, which is mainly consisted of students and faculty, can purchase various items from their campus stores, including textbooks and course-related materials, emblematic apparel and gifts, trade books, computer products, NOOK products and related accessories, school and dorm supplies, convenience and cafe items.

As of April 27, 2013, B&N College operates 651 traditional college bookstores and 35 academic superstores, which are generally larger in size, offer cafes and provide a sense of community that engages the surrounding campus and local communities in college activities and culture. The traditional bookstores range in size from 500 to 48,000 square feet. The academic superstores range in size from 8,000 to 75,000 square feet. B&! N College! �� three customer constituencies are students, faculty members and campus administrators.

NOOK

This segment includes the Company�� digital business, which includes the Company�� eBookstore, digital newsstand and sales of NOOK devices and accessories to third party distribution partners, as well as to B&N Retail and B&N College. Barnes & Noble�� NOOK digital bookstore and Reading Apps provide customers the ability to purchase and read their digital content and access to their Lifetime Library on a range of digital platforms, including Windows 8 PCs and tablets, iPad, iPhone , Android smartphones and tablets, PC and Mac. Barnes & Noble has implemented features on its digital platform to ensure that customers can access their NOOK content from almost all of today�� most popular devices.

The Company competes with Target, Books-A-Million, Waldenbooks, Amazon.com, Apple, Wal-Mart and Costco.

Advisors' Opinion:

• [By Doug Ehrman]

  Recent stories have suggested that Microsoft (NASDAQ: MSFT  ) plans to buy the Nook Media division of Barnes & Noble (NYSE: BKS  ) , of which it already owns 17%. The story comes just days after the bookseller announced that Nook devices would include the full suite of Google (NASDAQ: GOOG  ) applications; the device runs on the Android operating system, but has never had full functionality.

• [By Ben Levisohn]

  Barnes & Noble (BKS) has gained 3.8% to $18.39 after beating earnings by 26 cents despite sales sliding 10.3%.

  Taser International (TASR) has risen 6.1% to $20.26 after the maker of non-lethal weapons reported earnings of 13 cents a share, more than double analyst forecasts.

• [By Geoff Gannon]

  I lost money when I was long Barnes & Noble (BKS). But if you shorted the stock when I bought it ��you would��e lost more than 25% by now, and a lot of time (when the market was rising), and shorting isn�� free. So, it would��e gone very, very badly for you unless you really had the timing right.

Amid Biotech Selloff, Celgene Gets an Upgrade, Gilead’s Nine-Day Win Streak Ends

Celgene (CELG) was on the receiving end of an upgrade today, but the upside has been limited as the biotech sector continues to sell off.

Shares of Celgene gained 0.6% to $142.06 today, even as Amgen (AMGN) dropped 2% to 111.41, Biogen (BIIB) fell 3.1% to $285.81 and the SPDR S&P Biotech ETF (XBI) declined 3.9% to $124.37, extending its losing streak to three days. Gilead Sciences (GILD) dipped 0.2% to $73.90, ending a nine-day winning streak

In a report titled “It’s Time…We Think,” Piper Jaffray’s Joshua Schimmer and team explain why they raised their rating on Celgene:

The biotech sector has cooled off significantly over the past couple of months. Even a crushing EPS beat by [Gilead] barely moved that stock. Growth in general has come under pressure, and we are cognizant that high-multiple stocks may struggle to perform. While [Celgene] can’t yet be considered a “value” stock trading at a 2014 P/E multiple of 20x, it’s 20%+ sustainable EPS CAGR means it will eventually either become a value stock or see multiple stabilization with share performance driven by organic EPS growth…

We believe the valuation now reflects a conservative 2024 Revlimid patent expiry and excludes meaningful contribution from the advancing pipeline. As such, we are less concerned with Revlimid’s May 15 Markman hearing outcome for the Revlimid polymorph patents since we believe a settlement somewhere between the method of use (2024) and polymorph (2027) dates is the most likely outcome regardless. Such a settlement could come this year and act as a potent catalyst to lift shares out of their doldrums.  [Celgene] is attuned to delivering shareholder value and we believe will fight aggressively to lift the Revlimid polymorph patent overhang and deliver sustainable EPS growth. We are upgrading from Neutral to OW…

At least the market noticed, even if the gain wasn’t much.

This post has been updated.

Security-minded investors scoop up Barracuda’s…

Firewall and data storage company Barracuda Networks made its public debut this morning on the New York Stock Exchange, raising $74 million, at an opening price of $18 per share.

Investors immediately pushed CUDA to over $23 per share, though the price settled to about $22 just before the market closed.

The 10-year-old company's IPO follows network security company FireEye's sizzling IPO in late September. It's the latest affirmation of Wall Street's continuing love affair with technologies designed to help the good guys slow down data thieves, cyberspies and hacktivists.

"It was very exciting to get to ring the opening bell and see our stock trade for the first time," Barracuda CEO William "BJ" Jenkins told CyberTruth. "A lot of partners and customers want to deal with companies they view as likely to be around for a long time. We've reached a maturity level to where we felt it was a good time to make the private to public leap."

Barracuda provides firewalls, data storage and security systems, much of it through the Internet cloud, to more than 150,000 small and mid-sized businesses in over 100 countries.

For its fiscal year ended Feb. 28, Barracuda reported a loss of $9.2 million on revenue of $198.9 million; that followed a year in which it reported a profit of $466,000 on revenue of $160.9 million.

Barracuda has adopted Nordstrom's customer-service approach, while catering to companies of 100 to 5,000 employees. Tech buyers get pampered the way Nordstrom treats shoe shoppers. In the tech space, that's a disruptive way to do business, says Jenkins, a former EMC senior exec.

Barracuda charges a flat, not per user, fee; supports a 30-day full refund policy; and staffs customer service phone lines with live experts. "We take risks away and then we support our customers like no other company out there," Jenkins says. "Our renewal rate for subscription was 96%, on a dollars basis, in first half of this year."

Those are the kinds of metrics that entice gro! wth-oriented investors, who have no trouble looking past red ink. Wall Street has shown an eagerness to pump up the market value of companies like Barracuda and FireEye with strong growth prospects and loyal customers, says Venky Ganesan, a managing director at Menlo Ventures.

"What Barracuda does really well is package a bunch of features and deliver it in a digestible format for small and medium-sized companies," Venky says. "They're less about being at the cutting edge, and more about packaging all of this technology in a nice easy way, and they've built a really interesting business."

Barracuda ended its first day as a public company, priced at about $22 a share, up from $18. FireEye, which went public at $20 a share six weeks ago, closed Wednesday at nearly $40.

"The market currently is interested in getting what's called pure play security exposure," says Ganesan. "The number of pure play security options are limited and all of them are trading well."

Apple Q2 Earnings Live Blog Recap

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This story has been updated from 4:08 p.m. EST.

NEW YORK (TheStreet) -- Apple's  (AAPL) fiscal second-quarter earnings blew past Wall Street's estimates sending shares roughly 8% higher in after-hours trading.

Apple reported second-quarter earnings of $11.62 a share, generating $45.6 billion in revenue. The company shipped 43.7 million iPhones, 16.4 million iPads, and shipped 4.1 million Macs during the quarter. Gross margin, a highly watched level for Apple, came in at 39.3%.

Shares were up 7.7% to $565.15 in post markets. "We're very proud of our quarterly results, especially our strong iPhone sales and record revenue from services," said Tim Cook, Apple's CEO. "We're eagerly looking forward to introducing more new products and services that only Apple could bring to market." "We generated $13.5 billion in cash flow from operations and returned almost $21 billion in cash to shareholders through dividends and share repurchases during the March quarter," said Peter Oppenheimer, Apple's CFO. "That brings cumulative payments under our capital return program to $66 billion." Analysts surveyed by Thomson Reuters were expecting the Cupertino, Calif.-based Apple to report earnings of $10.18 a share on $43.53 billion in revenue, which would be a slight decline in revenue year over year, as Apple continues to promise new products and new categories. Apple also announced that it was upping its capital allocation program to over $130 billion by the end of calendar year 2015. As part of the program, the Board increased its share repurchase authorization to $90 billion from $60 billion, and boosted its quarterly dividend by 8%, to $3.29 a share. "The Company also plans to increase its dividend on an annual basis. With annual payments of $11 billion, Apple is among the largest dividend payers in the world," the company said in the release. From August 2012 through March 2014, Apple has spent $66 billion in cash on its capital return program. Apple will access the public debt markets this year to help paying for the program, and raise an "amount of term debt similar to what the Company raised during 2013." "We are announcing a significant increase to our capital return program," Cook said, when discussing the allocation program. "We're confident in Apple's future and see tremendous value in Apple's stock, so we're continuing to allocate the majority of our program to share repurchases. We're also happy to be increasing our dividend for the second time in less than two years." The Board of Directors also announced a seven-for-one stock split, effective June 2, 2014. Shares will will begin trading on a split-adjusted basis on June 9, 2014.

For the fiscal third quarter, Apple expects revenue between $36 billion and $38 billion. Gross margin is expected to be between 37% and 38%, while operating expenses are expected between $4.4 billion and $4.5 billion.

Apple said on the call that $46 billion of the current $60 billion buyback has already been used and that $66 billion of the total $100 billion in buybacks and dividends has been used already. Cook added that Apple wants to make its stock more accessible to a larger number of investors and a reason for the split.

Apple executives did not mention any details in regards to the next iPhone on the call, but Cook said the key thing for Apple is to "stay focused on things we can do best, and do things at a really high level of quality that our customers have come to expect." Cook added that the company cares about "every detail." "Apple delivered a strong sales and EPS print in 2Q:FY14, while the company's 3Q:FY14 sales outlook is inline with our projections but below the Street; however, this is good enough to satisfy investors, in our view," writes Cantor Fitzgerald analyst Brian White in a research note. Shares of Apple closed the regular session lower, falling 1.3% to close at $524.75. --Written by Chris Ciaccia and Laurie Kulikowski in New York >Contact by Email. Follow @Chris_Ciaccia

Stock quotes in this article: AAPL 

Best Biotech Stocks To Invest In 2014

Best Biotech Stocks To Invest In 2014: Prothena Corporation PLC (PRTA)

Prothena Corporation PLC, incorporated on September 26, 2012, is an Ireland-based, clinical-stage biotechnology company. The Company is engaged in discovering and developing monoclonal antibodies that are directed towards misfolded proteins or improper cell adhesion. Its pipeline includes NEOD001, PRX002 and PRX003. The Company's work in protein misfolding could result in therapies to treat several neurodegenerative diseases, including AL (primary) and AA (secondary) forms of amyloidosis (NEOD001), Parkinson's disease and related synucleinopathies (PRX002). Its cell adhesion development activities could generate new therapies to treat inflammatory diseases and metastatic cancers (PRX003). The Company's program, NEOD001, is in Phase 1. In addition to antibodies directed to neo-epitope targets, it is developing antibodies directed to other targets. The Company has generated antibodies against cell adhesion targets expressed on certain pathogenic Th17 immune cells and tum or cells.

The Company's pipeline also includes several late discovery stage programs for which it is testing antibodies in preclinical models of disease. It is also generating additional antibodies against other targets involved in protein misfolding and cell adhesion for characterization in vivo and in vitro.

NEOD001 for Amyloidosis

NEOD001 is a monoclonal antibody that targets the amyloid that accumulates in both AL and AA forms of amyloidosis. The antibody was designed to not react with normal serum amyloid A and only with the aberrant cleaved form of the protein (amyloid A).

PRX002 for Parkinson's Disease

The Company has generated antibodies targeting alpha-synuclein that may slow or reduce the neurodegeneration associated with synuclein misfolding and/or transmission. It has tested these antibod! ies in various cellular and animal models of synuclein-related disease. In a transgenic mouse model of Parkin son's disease, passive immunization with 9E4, a murine ver! sion of PRX002, reduced the appearance of synuclein pathology, protected synapses and improved performance by the mice in behavioral testing. The humanized antibody product candidate PRX002 has advanced into manufacturing and preclinical testing.

PRX003 for Inflammatory Diseases and Cancers

The Company is developing PRX003, a monoclonal antibody targeting MCAM for the potential treatment of inflammatory diseases and cancers. It has generated monoclonal antibodies that block MCAM-mediated cell adhesion and have been shown to delay relapse and severity of relapse in a mouse model of multiple sclerosis known as experimental autoimmune encephalomyelitis. The Company's antibodies are being tested in animal models of inflammatory diseases and cancers. Based on early results from these studies, it has identified a clinical candidate, PRX003. It has advanced this antibody into manufacturing and intends to advance this antibody into preclinical testing.

Advisors' Opinion:

• [By Jake L'Ecuyer]

  Equities Trading UP
  Prothena Corporation plc (NASDAQ: PRTA) shares shot up 21.60 percent to $45.19 after the company reported clinical data to be presented at International Symposium on Amyloidosis. Morgan Stanley raised the price target on the stock from $35.00 to $53.00.

• [By Lisa Levin]

  Prothena Corporation plc (NASDAQ: PRTA) shares surged 23.52% to touch a new 52-week high of $45.90 after the company reported clinical data to be presented at International Symposium on Amyloidosis. Morgan Stanley raised the price target on the stock from $35.00 to $53.00.

• [By Lisa Levin]

  Prothena Corporation plc (NASDAQ: PRTA) rose 24.40% to $46.23 after the company reported clinical data to be presented at International Symposium on Amyloidosis. Morgan S! tanley ra! ised the price target on the stock from $35.00 to $53.00.

• [By Michael Robinson]

  CSD is also tapping into the biotech boom. Another firm that it holds, and we like, is Prothena Corporation PLC (PRTA), a clinical-stage biotechnology firm focused on Parkinson's disease and other neurodegenerative disorders.

source from Top Stocks Blog:http://www.topstocksblog.com/best-biotech-stocks-to-invest-in-2014-2.html

Can Dell Beat Apple to the Punch?

Dell (NASDAQ: DELL  ) may hate itself right now, as the PC giant keeps trying to convince investors that it's not worth very much. But that's not stopping the company from wanting to ride the next possible wave of computing.

Dell exec Sam Burd recently told The Guardian that Dell may get into the wearable computing game soon. That's a market that Apple (NASDAQ: AAPL  ) is widely expected to jump into soon with an iWatch, although Google (NASDAQ: GOOG  ) is set to be the first mover with Google Glass. Dell continues to explore "ideas in that space," and Burd made comments that suggest Dell's strategy may compete more directly with Apple's rumored smartwatch:

There are challenges in cost, and how to make it a really good experience. But the piece that's interesting is that computers are getting smaller. Having a watch on your wrist -- that's pretty interesting, pretty appealing.

Dell's core business still relies on the PC market, which isn't doing very well right now. For the end-user computing segment that includes PC sales, sale revenue fall 9% last quarter to $8.9 billion, while generating just a 2.5% operating margin. A year ago, the business had a 6.5% operating margin.

The company has made several attempts to crack the mobile market but never found success in smartphones or tablets. Dell has made it quite clear that it has no intentions of getting back into the smartphone market, although tablets are a different story. The success or failure of Microsoft Windows 8 and Windows RT will determine the fate of Dell's tablet business.

Smartwatches could be the next evolutionary step in mobile computing, and Dell clearly wants in. The Pebble smartwatch is off to a strong start. Samsung has announced its intentions with its Altius. Google is reportedly making a smartwatch and gaming console to compete. Dell might beat Apple to market, but the company probably can't beat Apple in the market.

Wearable computing may easily become the next major battleground among the five biggest tech giants. That will add to an already extensive list of competitive areas where war is already being waged. The war is just beginning, but who will win? Get briefed on the current state of combat by clicking here.

1 Sign Duke Energy Stock Is Headed Higher

Duke Energy (NYSE: DUK  ) is in the midst of major leadership changes. With a new CEO announced last week and a new chair elected this week, there's one underlying signal that management moves will push Duke Energy stock even higher in the coming years. Here's why.

Good for the goose
It's no news by now that Duke Energy stock is in new hands. The utility's announcement last week put a face to Duke's new leadership as Chairman and CEO Jim Rogers transitions out of his current positions. Ideally, Rogers' exit will put an end to bad blood between regulators and utility. Sour relationships went bitterly bad when, during a massive 2012 merger, Rogers ended up continuing to lead Duke after Progress' CEO was poised to take over.

Now, with current CFO Lynn Good behind the corporate steering wheel, shareholders can hope that regulators will play nice on future rate requests, unlike this month's 50% haircut.

The real celebration
Utilities like Duke Energy rely heavily on good relationships with regulators to ensure sustainable profits, and Good's election will hopefully bring in a new era of positivity. But there's a new reason to celebrate Duke Energy's recent leadership transition.

The utility announced this week that it has elected lead director Ann Gray to serve as its new chair when Rogers steps down in December. Gray has a nearly 20-year history with Duke Energy, and her institutional knowledge will undoubtedly help during Rogers' transition out and Good's transition up.

But more important than any qualifications or past experience, this latest announcement brings something else, something absolutely essential, to Duke's board: leadership diversity. While Jim Rogers held the positions of CEO, president, and chair, this latest announcement officially splits those three positions among two separate individuals. For strategic-level thinking, a diversity of opinion is absolutely essential to creating a progressive company, and Duke Energy stock is gearing up to do just that.

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Join the crowd
Duke's latest move might seem innovative, but it's really behind the times. Exelon's (NYSE: EXC  ) board includes Chair Mayo Shattuck and President and CEO Chris Cane. Exelon also underwent a major merger in 2012, and Mayo was added to Exelon's board from his previous position as chair, president, and CEO of Constellation Energy. Similar to Duke's Lynn Good, Cane made his way up from COO, and has worked in the nuclear industry for 30 years.

Atlantic Power's (NYSE: AT  ) chair, Irving Gerstein, comes as an outsider to the utilities industry. But what he lacks in energy history, he makes up in corporate and political wherewithal. With a medical background, Gerstein has served on more than half a dozen other boards -- and has been a Canadian senator since 2008.

Barry Welch has served as Atlantic's president and CEO for almost 10 years and comes from a financial background. With Atlantic's "growth by acquisition" strategy, his longer history and investing knowledge make him a seemingly sensible choice.

Don't be bored with boards
While it's easy for investors to look beyond boards at on-the-ground operations, these corporate bodies are essential to a company's long-term success. Duke's newly diversified board paves the way for new ideas, different opinions, and creative conflict, in general. With Rogers out of the hot seats, Duke Energy stock is another step closer to sustainable profits.

With Duke's new leadership transitioning in, the utility just upped its dividend for the sixth straight year. Dividend stocks are worth owning only if you can rely on them to keep paying their dividends well into the future. We've gone through hundreds of prospects to find the best from the best, and now, we're sharing our findings in our latest in-depth research report, in which you'll find nine stocks with rock-solid dividends. Your free copy is waiting for you right now, so don't wait: Click here and get yours today!

U.S. Stock-Index Futures Gain Before Housing Data, Fed

U.S. stock futures rose, indicating the Standard & Poor's 500 Index will gain for a second day, as investors awaited data that may show housing starts climbed and the start of a Federal Reserve policy meeting.

Walter Energy Corp. advanced 4.3 percent in New York pre-market trading York as Morgan Stanley said the coal miner's shares may triple.

Futures on the S&P 500 (SPX) expiring in September increased 0.2 percent to 1,637.5 at 6:30 a.m. in New York. The index climbed 0.8 percent yesterday as data showed manufacturers in the New York area felt more optimistic in June and as confidence among U.S. homebuilders rose. Contracts on the Dow Jones Industrial Average gained 32 points, or 0.2 percent, to 15,153 today.

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"U.S. companies are doing really quite well," James McCaughan, chief executive officer of Principal Global Investors LLC, told Mark Barton on Bloomberg Television. "There's low energy costs, high productivity, an improving housing market. All that means that U.S. companies, particularly domestics, are doing pretty well. It's easy to see a situation for the rest of the year where U.S. equities continue to rise."

The Federal Open Market Committee begins a two-day policy meeting today, with Fed Chairman Ben S. Bernanke holding a press conference tomorrow. Bernanke suggested last month that the central bank could start to taper bond purchases if the economy improves in a "real and sustainable way."

'Quite Clear'

Bernanke has "actually been really quite clear the last two or three meetings," McCaughan said. "He's talked about tapering coming in on some modest employment improvement. He's talked about a 6.5 percent unemployment rate as being the time to normalize and stop the asset purchases."

A Commerce Department report at 8:30 a.m. in Washington may show housing starts rose in May. Builders broke ground on 950,000 houses at an annualized rate, up from April's 853,000 pace, according to the median estimate of economists surveyed by Bloomberg.

Walter Energy, a U.S. miner of coal used in steelmaking, gained 4.3 percent to $12.20. Morgan Stanley said the stock may climb to around $35 even if the company increases its share count by a third. The company plunged 20 percent in the past two days as it canceled a plan to refinance $1.55 billion of loans.

Europe's Downturn Drags Down German Manufacturers

It's another down week across the Atlantic for investors, and Germany's DAX (DAXINDICES: ^DAX  ) followed the herd by losing 0.6% over the past five days. The index managed to recover well on Friday after an upbeat U.S. payroll report, but weakness lingers in Europe. Germany's tenuous position as a leader in the continent's recovery continues to chafe against the goals of peripheral European nations, which haven't reacted well to German austerity ambitions. Germany got some good economic news this week, but will its future be bright enough to turn around Europe's slumping fortunes and reward European investors?

Exports up, outlook down
This week the Deutsche Bundesbank, Germany's central bank, slashed its economic growth forecasts for the country by 0.1% down to 0.3%. The Bundesbank also cut its 2014 growth prediction to 1.5% from an earlier estimation of 1.9%, although that figure would prove to be leaps and bounds better than Europe's current recession-plagued environment. Still, bright spots have emerged in Germany as Europe's largest economy tries to stave off the contraction of its neighbors. In April, the country's exports rose by nearly 2% over March and by a whopping 8.5% year over year -- great news for the nation's manufacturers.

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Still, Germany will have a hard time getting the eurozone to play ball with its hopes of digging the region out of recession. Debt-plagued nations such as Italy, Spain, and Greece have battled against Germany's conservative fiscal policy and austerity measures. Former Italian leader Silvio Berlusconi claimed that Italy needed to "seek a test of strength" against German leader Angela Merkel.

With Italy's youth unemployment rate hovering near 40% and the country's economy going anywhere but up, it will be hard for Merkel's talks of patience and fiscal conservatism to alleviate Italy's frustration. If Italy, Europe's third-largest economy, continues to be stuck in a recession, it will be that much more difficult for the eurozone at large to dig itself out of its hole -- and for Germany to avoid the pitfalls of its neighbors.

The export boost will help out some of Germany's biggest corporations and stocks, however. German automakers have taken a beating in the recession, and May didn't help: New-car sales in the country fell by nearly 10% for the month after notching a rare gain in April. Both BMW (NASDAQOTH: BAMXY  ) and Daimler (NASDAQOTH: DDAIF  ) have performed better than many carmakers in Germany this year, but both saw sales flatten over the early part of the year. Daimler's stock has performed well in the year so far, but to avoid any fall, the company -- along with BMW -- announced that it will not participate in the traditional summer break during which German automakers close their factories for a few weeks. Right now, neither company can afford that.

Siemens's (NYSE: SI  ) stock hasn't fared so well recently: Its shares have shed 4.8% year to date. Incrased exports should help if that trend keeps up, as Siemens conducts a significant amount of international business as Germany's pre-eminent engineering firm. Company leadership still projects a double-digit profit margin for 2014 despite the weak business climate in Europe, although Siemens has already lowered its outlook for the current year as solar-related losses and other charges weigh on its bottom line. Siemens will need to charge up its energy business to succeed, as the company expects profit from the unit to come in on the low side of earlier full-year projections.

Can you succeed in investing overseas?
Germany is only one of many economies struggling these days, but that doesn't mean investors can't thrive. Profiting from our increasingly global economy can be as easy as investing in the U.S. The Motley Fool's free report "3 American Companies Set to Dominate the World" shows you how. Click here to get your free copy before it's gone.

Why $1M may not be fill your retirement nest egg

You've been saving like a miser to get ready for retirement. You've pinched pennies, kept that last car for what seems like an eternity. You've banked a cool $1 million for your retirement.

Think you're set?

Well, you very well might be. Then again, you still might be short.

"The good news is there are more millionaires," says Richard Dragotta, at LPL Financial in Paramus, N.J. "Over nine million people in the U.S. have $1 million or more. The bad news is you are not necessarily wealthy if you have $1 million. The new $2 million may be the old $1 million."

"Thirty years ago, $1 million was a huge amount of money," says Haitham "Hutch" Ashoo, CEO of Pillar Wealth Management, in Walnut Creek, Calif. "Today, given today's lifestyles and costs, it isn't so much money."

"People think o​f $1 million is a lot of money," says Joe Heider, regional managing principal for Rehmann Financial Group in Westlake, Ohio. "But it's not in today's environment. It translate into $40,000 to $50,000 (annually) in sustainable revenue. That is not that much money on an annual basis."

Let's be perfectly clear. Not everyone will need that much cash in their retirement kitty. A survey of investment advisers makes it apparent: It all depends on how much money you need to live and what kind of lifestyle you plan to have.

"Everything is relative," says Clarence Kehoe, executive partner in the accounting firm Anchin, Block & Anchin in New York. "For some people, I would think $1 million would be more than enough. For other people, I can tell you some of these clients spend more than $1 million in a year. It depends on the person, their lifestyle and what they are used to."

"I think it depends on how much money you're going to spend," says Tim Courtney, chief investment officer at Exencial Wealth Advisors in Oklahoma City. "A million is not like $1 million 20 years ago or 30 years ago. If you're wanting to spend $50,000 a year or less from your investment portfolio, $1 million will! probably get it done for you."

But they also agree that $1 million is not what it used to be.

Heider says 10 to 12 years ago, when people earned a lot more on their investments, $1 million could generate $70,000 to $80,000 a year in retirement income. But with interest rates as low as they are, that's not really feasible.

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"When is $1 million enough?" asks Ashoo. "The truth is, it's about the lifestyle. It's about the retirement you are looking to achieve, and that lifestyle you are looking to enjoy for the golden years. That's what dictates if you need $1 million or $10 million or $50 million. It's not a race between you and the next guy."

FINRA to Mull Beefing Up Broker Background Checks

After recent reports claimed that the Financial Industry Regulatory Authority’s BrokerCheck is full of holes and deletes crucial information about brokers’ backgrounds, FINRA’s board plans to consider on April 24 an amendment to its supervision rule, including background investigations of new brokers as well as requiring firms to beef up their verification of reps’ U4s.

FINRA announced Wednesday its rulemaking items for discussion at the April 24 board meeting, which includes a proposed amendment to FINRA Rule 3110, the supervision rule, regarding background investigations of applicants for registration, including requiring firms to adopt written procedures to verify Form U4.

Brokers use Form U4 to begin and end their registered relationship with FINRA; it asks questions about employment and criminal history. The self-regulator says that the forms are essential to its ability to perform its regulatory oversight responsibilities.

In March, The Wall Street Journal wrote that its own survey had revealed that more than 1,600 brokers had bankruptcy filings or criminal charges that weren’t publicly reported, which violated FINRA regulations.

The Journal says that it uncovered the reporting failures by comparing the records of more than 500,000 stockbrokers, obtained from states, with criminal and bankruptcy-court filings.

The Journal reported Tuesday that FINRA also intends “to vet the information publicly reported for each of the approximately 630,000 stockbrokers it oversees against public court records.”

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The Public Investors Arbitration Bar Association (PIABA) released its own report in early March stating that BrokerCheck deletes crucial information about brokers’ backgrounds — including criminal records — despite the fact that such information is available from many state securities agencies operating under robust public records laws.

PIABA, a group of attorneys who represent investors in claims against brokers, stated in its report that the extent of omitted “red flag” background information in BrokerCheck is “so serious that unwitting investors relying on the online database may very well select brokers with whom they would not do business if they had access to the more complete picture available to FINRA but now being hidden.”

FINRA responded to the PIABA study by saying in a statement, “While the [BrokerCheck] system may not be perfect, we do have to make determinations on what information about registered representatives is appropriate to release, while at the same time balancing fairness rather than ignoring it.”

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Check out FINRA's BrokerCheck 'Hides' Criminal Records on ThinkAdvisor.

Delamaide: SEC catching minnows, not sharks

WASHINGTON — Few fishermen would take as much pride displaying the catch of a minnow as the Securities and Exchange Commission did last month when a federal judge imposed an $825,000 fine on a Goldman Sachs junior executive for misleading customers about a dubious investment.

A good six years after wildly speculative trading by Wall Street banks delivered hundreds of millions in bonuses to top executives while bringing the global financial system to its knees and billions in losses to investors, the best the SEC can manage against these big banks and their executives is this single judgment of a bit player who was only 28 at the time.

Fabrice Tourre, who styled himself "Fabulous Fab" in an e-mail, may well have misled investors, but he has long been seen as a fall guy for widespread abuse by executives at Goldman and other Wall Street firms who are much more highly placed.

And yet Andrew Ceresney, chief of enforcement at the SEC, congratulated himself and his agency for this court victory. "The ruling reflects the SEC's intent of pursuing meaningful sanctions to punish individuals responsible for misconduct and deter others from violating the federal securities laws," he said in a statement last month.

Another SEC lawyer was much less congratulatory in remarks he made at his retirement party later in the month.

The SEC has become "an agency that polices the broken windows on the street level and rarely goes to the penthouse floors," James Kidney said at his goodbye party, according to a report by Bloomberg News, drawing applause from the 70-some people in attendance. "On the rare occasions when enforcement does go to the penthouse, good manners are paramount. Tough enforcement, risky enforcement, is subject to extensive negotiation and weakening."

The union representing SEC employees has since posted Kidney's retirement speech online. The trial lawyer said his bosses at the agency were "tentative and fearful" and were more concerned about getting high-paying jobs af! ter they left the SEC than tackling tough cases against top executives.

Goldman Sachs did pay a settlement of $550 million last year for misinforming investors on that same synthetic security that Tourre was brought to trial for. But no other executives, including Tourre's supervisors, were charged or fined. SEC enforcers, Kidney said at his retirement party, are "at most a tollbooth on the bankster turnpike."

A separate report in American Lawyer last week provided more details about the internal struggle at the SEC to hold higher-ups at Goldman personally accountable.

The publication sued under the Freedom of Information Act for transcripts of an investigation by former SEC inspector general David Kotz into the agency's handling of the Goldman Sachs case.

Lawyer Kidney was speaking out then, too, according to the American Lawyer report by Susan Beck.

"My experience in this case still bothers me a lot," Kidney said during 80 minutes of sworn testimony in the summer of 2010. "We take extraordinary inferences and apply them to common little people," he said. "It still bothers me that we had a lot more than inference here, and we didn't do anything with it."

Kidney felt there was enough indication of involvement by Tourre's supervisor, Goldman managing director Jonathan Egol, to warrant interrogation, though other SEC lawyers working on the case felt it was not sufficient. When, at Kidney's insistence, Egol was questioned, there was no follow up.

For the record, both Bloomberg reporter Robert Schmidt and American Lawyer's Beck harvested the usual "no comment" from spokesmen for the SEC and Goldman regarding Kidney's remarks.

The American Lawyer report notes that nearly a dozen other collateralized debt obligations similar to the one Tourre was found guilty of civil fraud for were never subject to SEC allegations or settlement.

At issue with all the CDOs was the fact that the hedge fund Paulson & Co. helped Goldman construct these synthetic securit! ies and t! hen sold them short in the confidence they would implode — which they did, reaping the hedge fund a handsome profit at the expense of the investors Goldman sold the securities to.

It's easy to understand why Kidney might be upset by all this.

The SEC chief enforcement officer at the time, Robert Khuzami, who was general counsel at Deutsche Bank before taking the SEC post, is now a partner at the corporate law giant Kirkland & Ellis.

Khuzami, like his successor Ceresney, would regularly trot out a blizzard of statistics about enforcement actions undertaken and disgorgements of profits and penalties levied, all to preserve the appearance that the SEC is a tough cop on the job.

In his retirement speech, Kidney criticized the use of misleading statistics to tout its enforcement efforts. "It is a cancer," he said of the practice. "It should be changed."

The SEC is spending too much time "picking on the little guys," he said. For the big fish on Wall Street, however, "we are a cost, not a serious expense." His conclusion: "The system is broken."

Darrell Delamaide has reported on business and economics from New York, Paris, Berlin and Washington for Dow Jones news service, Barron's, Institutional Investor and Bloomberg News service, among others. He is the author of four books, including the financial thriller Gold.

This Great Profit Play Has Another Catalyst Coming

Over the summer, I told my Strategic Tech Investor readers a great way to get two stocks for the price of one through corporate spin-offs.

You may recall that this is a process by which a parent company separates a business unit into a stand-alone outfit and then issues shares in the new operation to the public.

The great thing for investors is that by owning stock in the parent company, they generally get shares in the spin-off automatically as special dividends, often tax-free.

At the time, I mentioned that a spin-off from computer storage leader EMC Corp. (NYSE: EMC) should do particularly well.

The spin-off company, Pivotal, marks its one-year anniversary this month as it continues to gain traction in the Internet realm.

And that means EMC is getting traction, too. Lots of traction, in fact.

And that makes EMC a stock that we want to own. Let me show you why...

This Company Was Always a Leader

You'd be hard-pressed to find a savvier company than the Hopkinton, Mass.-based EMC. And let me tell you right now: There's more to this story than just the Pivotal spin-off.

Much more.

Over the past decade or so, EMC has gobbled up more than 70 high-tech companies in a mergers-and-acquisition spree that saw the firm spend about $17 billion.

That's more than the company spent on research and development during that same period.

EMC ranks as a global leader in data storage products that are integral to Cloud-Computing technology, also known as "The Cloud." EMC also makes money by selling services, including storage and data backup.

Truth be told, EMC makes some of the very best hardware for mass-data storage. And it's actually gaining market share, a tough feat for a sector leader that's usually the target of all the other sector upstarts.

EMC, it seems, likes to push back.

A new report by stock-researcher Trefis.com says EMC has managed to hold its lead for at least a decade, an amazing feat when you consider the avalanche of hungry young firms that have launched in the period.

According to IDC estimates, EMC's share of the storage hardware segment is more than 30%. That's about two-and-a-half times that of its nearest competitor, NetApp Inc. (Nasdaq: NTAP).

And EMC has excellent financials. Trading at $27 a share, it has a market cap of nearly $55 billion and sells for less than 13 times forward earnings. It has operating margins of 19%, and a 13% return on stockholders' equity.

EMC recently increased its quarterly earnings by more than 17% and last year brought in more than $4.6 billion in free cash flow (FCF).

Thus, as I see it, EMC ranks as a great foundational play. It has the power to remain a market leader - and high earner - for years to come.

EMC also has deep expertise in high-margin M&As, which will help it further increase its market reach.

But unlike the rest of its high-tech brethren, EMC has an additional potential catalyst that we believe will ignite the company's shares.

We're talking about the Pivotal spin-off.

When Breaking Up Is Good to Do

Spin-offs are a field that I've been following for the last few years. In fact, if you choose the right ones, you're looking at some easy-money profits.

Research backs me up. Several institutional investors and major universities have found that shareholders often score big gains. For instance, a study by Lehman Bros. found that spin-offs typically outperform the market in their first two years by as much as 40%.

Then there's a report from two professors at Penn State University. They looked at 30 years of market data covering 174 spin-offs.

Their finding: In the first three years of operations, these new independent companies showed price appreciations of 76%, beating the Standard & Poor's 500 Index by 31%. Bear in mind: Three decades covers a lot of data - traversing both bull and bear markets.

And that means these spin-offs are great long-term plays.

But with the EMC-Pivotal spin-off, we have a lot more going on than just the market for these kinds of arrangements.

Pivotal is already a fast-mover in Cloud Computing, one of the biggest global tech trends out there today. The Cloud is benefitting from the fact that companies want to keep a lid on their computing costs by outsourcing data centers to third-party vendors.

With these factors in mind, Forrester Research predicts the market for Cloud Computing will grow to $241 billion by the end of this decade. That's roughly a 487% increase from the base year of 2011, when the Cloud had total sales of about $41 billion.

Moreover, Pivotal is also deeply rooted in another major tech trend: Big Data. This is a field where computers crunch through massive amounts of unstructured data to look for things like online fraud or to make strategic predictions about market growth.

Big Data is the "answer" to the question: How do we make sense out of the overwhelming amount of data we're generating in the Information Age?

Analysts note that 90% of the data we work with was just created in the last two years alone. Forecasts call for this sector to grow tenfold over a five-year period, growing to roughly $50 billion by 2016.

Pivotal recently received extensive media attention as the new player to watch. Just last week, The New York Times profiled the company's "Big Data Suite," a bundle of new big-data products with simplified pricing that fits Pivotal's Cloud-style approach.

For its part, Pivotal has one main advantage I always look for in a tech investment - great leadership.

An Inside View

Consider that Pivotal CEO Paul Maritz formerly held several key positions at global software giant Microsoft Corp. (Nasdaq: MSFT). In his 14 years at Microsoft, Maritz helped develop Windows 95 and Windows NT, a product often found in data centers.

In some ways, you could say Maritz was involved in the precursor to today's web-based Cloud: He helped make Internet Explorer the world's dominant browser.

Not only that, but Maritz logged four years as CEO of VMware Inc. (NYSE: VMW). That's a computer virtualization firm partnering with EMC on the Pivotal deal.

At a Southern California investment conference last month, Maritz described the thrust of Pivotal's approach with two words: open standards.

In other words, Pivotal's Cloud platform and Big Data analytics engine are designed to run on any server in any environment.

That means clients don't have to invest in, say, a Microsoft approach, and then find it hard to add applications developed by competitors. It's all part of a strategy to create newer, faster ways for large companies to manage and analyze massive amounts of data.

Pivotal must really be onto something with its approach: Industrial giant General Electric Company (NYSE: GE) invested $105 million in the company last year.

Then, again, if IBM execs saw the same business model we did, it's no wonder they're so bullish on Pivotal. Using the 2012 financials that were available as part of EMC's statements, we can see that Pivotal had sales of $300 million.

But EMC execs say that they believe the new standalone unit can more than triple revenue to $1 billion in five years.

EMC has said it could take up to three years to take Pivotal public. But many analysts say it actually could happen by the end of this year while the market for IPOs remains strong.

The company said it will use a blueprint similar to VMware's. That company was itself an earlier spin-off from EMC. VMware is publicly traded but EMC still owns nearly 80% of VMware.

The Pivotal spin-off gives investors a firm grip on two of the hottest trends in tech today - Big Data and the Cloud - all in one fell swoop.

And if the company were already public, the Big Money crowd up on Wall Street would be bidding Pivotal's shares to the sky.

Instead, the pros seem to be willing to bide their time until the Pivotal IPO plays out.

We're not so patient.

In fact, we want to give you a head start.

And you can get that head start by investing in EMC.

Think of it as a "secret" path to the hottest tech play in Silicon Valley.

1 Key Area Where Delta Air Lines, Inc. Trounces the Competition

There are a lot of reasons why Delta Air Lines (NYSE: DAL  ) has been earning more money than any other airline in the world. For example, recent cost containment initiatives have helped Delta turn its revenue gains directly into profit growth.

Delta Air Lines has become incredibly reliable -- and profitable -- in the last few years. Source: The Motley Fool

However, for any global network carrier today, keeping business travelers coming back is critical to long-term success. One way to ensure that happens is to reliably deliver good service. Delta does just that -- and trounces other major carriers like American Airlines (NASDAQ: AAL  ) , United Continental (NYSE: UAL  ) , and even Southwest Airlines (NYSE: LUV  ) in terms of service quality.

Consistently good operations
Earlier this week, researchers at Wichita State University and Embry-Riddle Aeronautical University published the annual Airline Quality Rating report. The study measures airline quality through four measures that every airline must report to the Department of Transportation: on-time performance, mishandled baggage, involuntary denied boardings, and official customer complaints.

For the most part, smaller airlines dominate the top of the rankings. Smaller carriers tend to be less operationally complex, making it easier for them to deliver reliable, high-quality service. However, Delta Air Lines manages to stick right with these smaller carriers. For the last two years, Delta has landed in fourth place in the rankings. (This year, it nearly tied for third place.)

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This performance put Delta way ahead of American (and its merger partner US Airways, which is still reported separately), United, and Southwest (and its merger partner AirTran). Those five airlines were scattered between seventh place and 12th place in the rankings.

Southwest Airlines has fallen behind Delta in terms of operational performance in the last few years. Source: The Motley Fool

Among this peer group of major mainline carriers, Delta's superiority was fairly consistent across the four performance categories in the most recent study. Delta's 84.5% on-time arrival rate gave it an easy victory -- US Airways came in second in this peer group with an 81.1% on-time rate. Delta also mishandled bags less frequently than these competitors, with US Airways again taking second place.

In terms of involuntary denied boardings, only American Airlines "bumped" passengers less often than Delta. Delta also took second place in terms of official customer complaints, beating American Airlines and United Continental by a wide margin, but still losing to Southwest.

Solid operational performance is worth a lot
Delta's higher reliability should have a big long-term reward, as profitable high-fare business travelers expect good service. If Delta can maintain its sizable advantage, it should gradually gain market share among business travelers. (Of course, business travelers also consider things like flight schedules in choosing between airlines.)

However, solid operational performance can also lead to big short-term rewards. Delta Air Lines handled last quarter's winter storms very well, which will allow it to post a 6.5%-7.5% operating margin -- in line with its original guidance.

United Airlines' weaker operational performance hurt its Q1 earnings. Source: The Motley Fool

Its less-reliable competitors weren't so lucky. American Airlines had to revise its Q1 operating margin guidance down by 1 percentage point, to a new range of 5%-7%. United Continental is in even worse shape for Q1 -- after initially projecting a 0%-2% increase in unit revenue, the company now expects a 1.5%-2.5% decline. That will lead to an even bigger Q1 loss than last year.

Foolish bottom line
It pays to deliver good service in the airline industry -- particularly if your key target market is high-paying business travelers. In the past few years, Delta Air Lines has consistently beaten the competition in most of the key service-related metrics. This should make Delta's recent success sustainable in the long run.

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Advanced Micro Devices (AMD) Bucks Market Headwinds and Launches a New Chip Plus Other News (INTC & NVDA)

Despite some pull back in the market recently, chip stock Advanced Micro Devices, Inc (NYSE: AMD) has largely held up as have Intel Corporation (NASDAQ: INTC) and NVIDIA Corporation (NASDAQ: NVDA). I should mention that we recently had an open position in Advanced Micro Devices in our SmallCap Network Elite Opportunity (SCN EO) portfolio from last summer up until late January when we locked in a small loss. We decided to get out in part because it's a trading portfolio and also because AMD's shares sank once more after the company had issued an earnings report – a repeat of what happened after three previous earnings reports. Nevertheless and if you are an investor with a long term time horizon, you might want to consider the following news:

What Tech Sell Off? In a recent CNBC segment, it was noted that despite the recent selloff in the broader tech space, semiconductor companies specializing in chips that power devices like smartphones and tablets have held up well. Some of the big winners since early March include Intel, Advanced Micro Devices, Taiwan Semiconductor and Freescale Semiconductors, which are up better than 7% as these companies are benefiting from a shift in the tech sector and the stabilization of the PC market (according to Chad Morganlander with Stifel Nicolaus). World's Fastest Graphics Card Launched. On Tuesday, Advanced Micro Devices announced the launch of the world's fastest and most powerful graphics card - the AMD Radeon™ R9 295X2. Forbes already has a detailed review, which concluded by saying:

What I know for certain is that AMD's Radeon 295X2 is a compelling product, and that it justifies its asking price in performance, thermals, and aesthetics. And I hope it signals a bold new direction for AMD in terms of design language and branding. Quite simply, if you're not married to Nvidia's robust ecosystem and want a 4K-capable card that stays cool and quiet, you can't go wrong with the Radeon R9 295X2.

There are also good reviews from AnandTech, PCWorld, Kotaku , among other sites, that are worth looking at. The card will be available later this month at a starting price of $1499 USD and EUR 1099 (excluding VAT).

AMD Inks a $1.2 Billion Deal With GlobalFoundries. At the beginning of the month, Advanced Micro Devices announced announced that it had amended its Wafer Supply Agreement (WSA) with GlobalFoundries. Under the amendment, AMD expects to pay GlobalFoundries approximately $1.2 billion in 2014. This expectation is based on AMD's current PC market expectations and the manufacturing of certain Graphics Processor Units (GPUs) and semi-custom game console products at GlobalFoundries in 2014. Barron's noted that AMD had paid GlobalFoundries $960 million for chips to be made last year but bought no gaming chips, graphics processing units or GPUs. Annual Meeting of Stockholders. AMD is scheduled to hold its Annual Meeting of Stockholders on Thursday, May 8, at 9:00 am. A real-time video webcast of the meeting will be available at www.virtualshareholdermeeting.com/AMD14 plus a replay of the video webcast can be accessed at ir.amd.com for approximately four hours after the conclusion of the live event. Share Performance. Advanced Micro Devices is up 3.4% since the start of the year, up 73.8% over the past year and up 16% over the past five years; but as you can see from the following performance chart, AMD has both over and underperformed chip stocks Intel Corporation and NVIDIA Corporation:

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

SmallCap Network Elite Opportunity (SCN EO) had an open position in AMD. 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.