2011 U.S. Filing Activity Matches 2010 Levels, Setting Stage For Active 2012

Despite the drop-off in new issues this year, filing activity has proved surprisingly resilient in the U.S., with 259 initial submissions to the SEC, matching the number seen in 2010. With one week left in 2011, the final total for IPO filings this year could well exceed last year's. 2011 could become the third most active year for U.S. IPO filings over the last decade, trailing only 2004 (315 filings) and 2007 (299 filings).

US IPO Filings
2002	2003	2004	2005	2006	2007	2008	2009	2010	2011
128	106	315	255	262	299	107	119	259	259

December 2011 also represented the third consecutive month of increased IPO filings and the first month IPO filings have increased year over year since July 2011. More than half of the filings in December came from the consumer and technology sectors.

Notable December 2011 US IPO filings:

Annie's (BNNY), a leading organic food company; Avast (AVST), which provides the world's most widely-used consumer security software; Gogo (GOGO), which provides WiFi service on commercial planes; Proofpoint (PFPT), an on-demand data protection solutions provider; Roundy's (RNDY.RC), a Midwest supermarket chain; and Tumi (TUMI), a luxury luggage retailer.

U.S. IPO Pipeline

The U.S. IPO pipeline now stands at 202 companies, the highest level since 2000. Half of the backlog consists of technology (51 companies), cleantech/energy (31) and consumer (17) sectors. The pipeline includes a number of large companies, including global asset manager The Carlyle Group (CARL), leading toy retailer Toys R Us (TOYS) and auto finance company Ally Financial (ALLY). Others looking to go public in 2012 include technology companies such as online reviews site Yelp (YELP), travel search engine Kayak (KYAK) and email marketing software provider ExactTarget (EXTG), and consumer names such as home furnishings retailer Restoration Hardware (RH.RC), restaurant chain Dave & Buster's (PLAY) and party supplies retailer Party City (PRTY).

Read our 2011 Global IPO Review.

Baird Draws Four Advisors From Morgan Stanley, Opens Wealth Management Office

Baird said that it just added four financial advisors and opened the firm's first wealth management office in Charlotte, N.C.

The Parrott, Forbes & Floyd Group, formerly with Morgan Stanley Smith Barney, "brings 100 years of combined industry experience to Baird and collectively oversees more than $350 million in client assets," the company said in a statement.

The team joining Baird includes Michael Parrott, CIMA; Charles Forbes, CIMA, CRPS; Trea Floyd, CFP; and James Bunting.

The office also includes branch manager Landrum Henderson, who joined the company in October 2009 from Bank of America.

"I couldn't be more pleased to welcome Mike, Chuck, Trea, Jim, Linda and Kristy to Baird," Henderson said in a statement. "Widely recognized as a well established and highly respected team, they will be instrumental in establishing a wealth management presence for Baird in Charlotte."

Baird's Charlotte office is currently located at 5605 Carnegie Blvd., but will relocate permanently to the Piedmont Row complex later this year.

The firm's private wealth management business continues to grow, having added more than 100 FAs in 2009 and 30 advisors and branch managers since the beginning of 2010 - the vast majority from the four wirehouses.

Baird now includes more than 650 financial advisors, who oversaw more than $58 billion in client assets as of March 31, 2010.

3 Beaten-Down Brazilian Buys

As the U.S. indices mounted one of their strongest Octobers ever, the S&P 500�s 11.5% return paled in comparison to the 21% surge in the iShares MSCI Brazil Index (NYSE:EWZ). Impressive to be sure, but that�s only part of the picture. If you go back through all of 2011, the S&P 500 is slightly in positive territory through the first 10 months while the EWZ was down almost 19%.

It�s been a tough year for Brazilian stocks thanks to concerns about the global economy. Brazil is rich in natural resources, so commodity exports are a big driver of growth there. Fears over slower growth around the world — and some think a recession is looming — have hit commodity- and natural resource-related stocks especially hard.

By many measures, Latin American stocks haven�t been this cheap since the U.S. financial crisis three years ago. And while red-hot growth in emerging markets might have cooled for the time being, it isn�t going away. The good news is that the dip this year minimizes further downside risk, and many of these stocks are poised for a nice move when there are signs the global economy is strengthening.

Here are three beaten-down Brazil buys that could be viewed as value plays, growth plays — or both. Heck, they could even be considered income plays, because all three have very nice dividend yields.

Vale

Vale (NYSE:VALE) is the second-largest mining company in the world and the largest producer of iron ore, which is the most produced and consumed mineral in the world. And prices have held up much better than other commodities like copper and nickel in recent weakness. This relative strength should continue going forward when you factor in supply and demand, especially in emerging markets.

In the third quarter, Vale�s profits fell 18% from 2010, but most of that was because of weakness in Brazilian currency. Revenues actually increased 16%, and the company produced a record amount of iron ore in the quarter. Iron ore sales volumes did fall slightly, but prices were 18% higher than the third quarter of 2010 and near record levels.

The stock is down 25% in 2011, and management said in its third-quarter earnings statement that a deep global recession already is priced into VALE shares. I would largely agree with that. I like VALE as a long-term play on emerging-markets growth, which we know will continue to be strong. A temporary slowdown or even recession would delay an upside move, but it wouldn�t derail it. Plus, you collect a nice 7% dividend yield.

Itau Unibanco

Itau Unibanco (NYSE:ITUB) is the largest private-sector bank in Brazil. (Banco do Brasil has the most assets, but it is controlled by the government.) As with many other financials this year, the stock has struggled, losing 20%.

For the rest of this year and into 2012, a weak global economy could keep a lid on growth as interest rates are lower than they used to be and fewer loans are being made. Longer term, however, banks in Brazil will benefit from the acceleration of growth and additional wealth created in a rising middle class.

ITUB is strengthening itself in a weak environment by cutting costs and increasing efficiency, which increases the upside potential as the economy strengthens. The stock is a value at just 8.1 times expected 2012 earnings and kicks out a 3.4% yield.

Embraer

Not surprisingly, orders for jet airplanes have not exactly been robust in the slow economy. And while a surge in orders isn�t imminent, the longer the drought continues, the more pent-up the demand for when orders do start to flow again.

Brazil�s Embraer (NYSE:ERJ) is an exciting growth story in both regional jets used by airlines as well as private business jets. The regional jet is a growing area of commercial aviation because these smaller, fast and sleek single-aisle planes are used for shorter distances and often are waiting in hubs to be the first or last leg of a journey for anyone traveling to and from places such as Daytona, Santa Fe, Cedar Rapids, White Sulphur Springs and Vail. The reason: It is more economical to run these smaller planes than fly large aircraft at low passenger capacity. This technique is being used in Asia and Latin America, too. Airports are springing up, and regional jets are a great way to service them.

In business jets, the company is ready to unveil new models (the Legacy 450 and 500), which are expected to be very successful. China also is an important market for Embraer in the executive jet area. It can�t sell regional jets there for competitive reasons, but air travel is growing fast in China, and Embraer has made that country enough of a priority that it now does final assembly of planes in China.

Through the first three quarters of 2011, Embraer delivered 122 planes. What�s interesting, however, is that the company is sticking by its target of 220 plans for the year. That will mean a busy fourth quarter of 100 deliveries if it is to meet that goal. Part of the reason for the year-end frenzy is the June earthquake in Japan slowed down production of some engines, pushing delivery back. I think 2012 should see at least that many planes delivered and possibly more if the global economy gains traction.

ERJ is down about 3.5% for the year, which is better than many of its Brazilian counterparts, and it yields a nice 5.6%. It�s still pretty cheap at 11 times next year�s earnings, and I expect the stock to move in anticipation of a stronger economy.

As of this writing, Hilary Kramer did not own a position in any of the aforementioned stocks.

Swap Your EMC Shares For NetApp, Says J.P. Morgan Analyst

J.P. Morgan analyst Mark Moskowitz this morning is advising investors in IT infrastructure stocks to swap out of EMC (EMC) and into NetApp (NTAP).

• EMC: He downgrades the stock to Neutral from Overweight, trimming his price target to $21, from $22. “EMC has been our supertanker stock since October 2008, and we continue to think the stock is a core holding for long-term investors,” he writes. “We do not see, however, a lot of upside potential to top- and bottom-line growth this year and next. Secular shifts to the midrange and increasing competition in virtualized environments could limit EMC�s upside potential. We think these factors, along with the increasingly discounted VMware stub, stand to keep shares of EMC trading more in line with the peer group, which is why we are moving to Neutral.”
• NTAP: Moskowitz upgradesto Overweight, from Neutral, with a new target of $41, up from $36.50. “Near-term business fundamentals continue to improve, and we believe that secular shifts should favor NetApp the rest of this year and next,” he writes. “In networked storage, we now prefer shares of NetApp to EMC. In our view, NetApp’s revenue growth potential of 20%-plus will have few rivals and is built on the company’s improving attach rates to virtualization environments, the secular shift to the midrange, and increasing traction in NetApp�s direct/indirect sales channels.”

This morning:

• EMC is down 61 cents, or 3.4%, to $17.45.
• NTAP is down 40 cents, or 1.2% to $32.

17.45 -0.61 (-3.38%)

Top Stocks For 3/24/2012-4

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Tuesday October 27, 2009

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TAXS, SCHW, PSFT, DISH, PWRM, MMM, CSRH, WFC, CVAT, JPM, AQNM

TAXS, TaxMasters Inc., TAXS.OB

TAXS‘ commitment to helping taxpayers in the United States regain compliance with The Internal Revenue Service IRS.

TAXS finalized plans this week to take advantage of the expected surge in sales that begins for the IRS tax relief industry in October and builds through April of the following year. TAXS reported sales for the first six months in 2009 of $18,758,000, an increase of $12,348,000 or 193 percent, over 2008 sales for the same period of $6,410,000. TAXS used this growth data along with historical data to plan for the expected 4Q increase in sales.

More about TAXS at www.txmstr.com

SCHW, Charles Schwab Corp.

SCHW is a leading provider of financial services, with more than 300 offices and 7.6 million client brokerage accounts, 1.5 million corporate retirement plan participants, 667,000 banking accounts, and $1.36 trillion in client assets.

SCHW has relocated its flagship San Francisco branch office to 100 Post St. from 101 Montgomery St. and hosted a ceremonial opening of the new branch today. Charles R. Schwab, founder and chairman, Gavin Newsom, Mayor of San Francisco, and Carrie Schwab-Pomerantz, president of the Schwab Foundation, spoke at the event.

PSFT, Powersafe Technology Corp., PSFT.PK

PSFT subsidiary Amplification Technologies Inc. (www.amplificationtechnologies.com) (ATI), is offering higher performance thermoelectrically cooled discrete amplification single photon counting solid state photodetectors. These photodetectors are mounted on a two stage thermoelectric cooler inside a hermetically sealed TO8 package and can be operated down to a temperature of -30oC.

The devices are available in both Si and InGaAs/InP technologies. As compared to TO5 devices, these TO8 packaged detectors have 10-30X lower dark current depending on operating temperature. The Si devices offer flat and wide spectral response in the visible light spectrum from 300 to 800 nm and significantly improved photon detection efficiency (PDE) of 30-40%. The InGaAs/InP devices offer spectral response in the near infrared spectrum from 1000 to 1700 nm, and modestly improved PDE in the range of 10-20%.

Jack Mayer, president of PSFT stated �we are very pleased with these improved parameters. Their achievement is a significant step in our goal of penetrating scientific instrumentation and range finding and tracking photodetection markets.�

These devices also offer very high gain >100,000, excess noise factor <1.1, response time <500ps,and photon counting capability. Unlike conventional Geiger-mode APDs, these detectors do not need an external quenching circuit and operate in a non-gated continuous mode. The technology is expected to allow the creation of linear and 2D arrays that combine: high gain, low noise factor and high speed operation using conventional semiconductor fabrication techniques. These products are targeted at a broad range of applications including medical imaging, night vision, scientific and industrial instrumentation, flow cytometry, range finding, tracking, free space communication, spectroscopy, quantum key distribution (QKD), low light level imaging and high energy physics.

DISH, Dish Network Corp.

DISH provides approximately 13.610 million satellite TV customers as of June 30, 2009 with the highest quality programming and technology at the best value, including the lowest all-digital price nationwide.

DISH Network L.L.C., a subsidiary of DISH, today announced a weeklong free preview of NBA LEAGUE PASS, the NBA’s pay-per-view package of out-of-market games. The free preview on DISH Network begins today, the opening day of the 2009-10 NBA season, and runs through Tuesday, Nov. 3, 2009.

PWRM, Power 3 Medical Products Inc, PWRM.OB

Power3 Medical Products, Inc. is a leading bio-medical company engaged in the commercialization of neurodegenerative disease and cancer biomarkers, pathways, and mechanisms of diseases through the development of diagnostic tests and drug targets. Power3�s patent-pending technologies are being used to develop screening and diagnostic tests for the early detection and prognosis of disease, identify protein biomarkers, and drug targets. Diagnostic tests are targeted toward markets with critical unmet needs in areas including neurodegenerative disease (NuroPro) and breast cancer (BC-SeraPro). Power3 expects to complete phase II clinical validation trials of its blood serum diagnostics for Alzheimer�s disease (NuroPro-AD), and Parkinson�s disease (NuroPro-PD) in 2009 and for breast cancer in 2010, followed by filings with the FDA. Power3 operates a state-of-the-art CLIA certified laboratory in The Woodlands (Houston), Texas. Power3 continues to evolve and enhance its IP portfolio, employing sensitive and specific combinations of biomarkers it has discovered from a broad range of diseases as the basis of highly selective blood-based tests for ALS, Alzheimer�s, and Parkinson�s diseases, and breast cancer.

PWRM Announced that its Chief Scientific Officer is Chair and Keynote Speaker of Session at the BTI Life Sciences 2nd Annual Congress and Expo of Molecular Diagnostics in Beijing, China in November 2009

Further international recognition of validity as the company�s President and CSO, Dr. Ira Goldknopf will deliver an invited Keynote address and chair a session on �Biomarkers and Diagnostics in Personalized Medicine (Track 6-4),� at the BIT Life Sciences 2nd International Congress and Expo of Molecular Diagnostics in Beijing, China, November 19-21, 2009. The Theme of the meeting is �New Leadership of Personalized Medicine.�

More about PWRM at www.power3medical.com

MMM, 3M Co.

MMM, together with its subsidiaries, operates as a diversified technology company worldwide. It operates in six segments: Industrial and Transportation; Health Care; Safety, Security and Protection Services; Consumer and Office; Display and Graphics; and Electro and Communications.

Expanding its platform of rapid diagnostic testing, MMM today announced the introduction of the 3M� Rapid Detection RSV Test. RSV, or respiratory syncytial virus, is a respiratory virus that infects the lungs and breathing passages and is a common cause of bronchitis and pneumonia in children under one year.

CSRH, Consorteum Holdings Inc, CSRH.OB

CSRH has signed a Letter of Intent with Tactical Connections Inc. to provide various financial services to major tier one US, Canadian and European manufacturing and retail industries.

Quent Rickerby, President & COO of Consorteum Holdings Inc., said, �Consorteum and Tactical Connections have been working together to create a program that will drive consumer loyalty through manufacturer and retailer specific programs designed to increase consumer spending.�

Consorteum will work with Tactical Connections to provide its clients with new and enhanced solutions to drive consumer spending and customer loyalty. Through the partnership, the Company will provide manufacturer�s mail-in rebate gift cards with association branding, loyalty and rewards programs, stored value cards and other value-added services.

Brad Kerr, President of Tactical Connections Inc., commented, �Tactical Connections is focused on providing new and innovative products and services that help increase the revenues of our manufacturing and retail clients while driving brand loyalty. With this new relationship, we can offer our North American and European clients better ways to reduce costs and interact with customers on a long-term basis.�

More about CSRH at www.consorteum.com

WFC, Wells Fargo & Company

WFC is a diversified financial services company with $1.2 trillion in assets, providing banking, insurance, investments, mortgage and consumer finance through more than 10,000 stores and 12,000 ATMs and the internet (wellsfargo.com) across North America and internationally.

WFC announced a quarterly common stock dividend of $0.05 per share. The dividend is payable December 1, 2009, to stockholders of record on November 6, 2009. WFC has approximately 4.7 billion shares outstanding.

CVAT, Cavitation Technologies Inc, CVAT.OB

CVAT is a “Green-Tech” company, established in 2006 to become a world leader in the development of new cutting edge technologies for the vegetable oil refining, renewable fuel, petroleum, water treatment, wastewater sanitation, food and beverage, and chemical industries.

CVAT has signed Miura Engineering Co., Ltd. Tokyo, Japan (”MEC”) (www.miura21.co.jp) as its new agent to serve markets in Japan for CTI’s Nano-Cavitation Process Systems. Miura is a leading Engineering Company specialized in Edible Oil Processing Plants in the Far East.

According to Kirk Wiggins, CTI’s Director of Sales and Business Development, “We are very pleased to be working with Miura Engineering Co., Ltd. and Mr. Shigeru Miura, President of the company. Mr. Kazushi Miyauchi, General Manager for MEC visited us recently at our headquarters in Chatsworth, California and the discussions were very productive.” Mr. Miyauchi has stated, “We agree that our two companies will find many areas where we can work together for our mutual success.” Mr. Koichi Takahagi, General Manager, Engineering Department, has also stated “Miura Engineering Co. is very pleased to work with CTI and to offer their technology to our customers in Japan and Korea.”

Mr. Wiggins further stated, “The exciting thing about CTI is the diverse applications of our technologies. All of our applications are in industries where there are significant environmental problems and/or a need to reduce costs and improving profitability. We are working on projects and technologies for vegetable oil refining, renewable fuels, petroleum, water desalination, wastewater treatment, food and beverage, chemical industries.” Miura Engineering has experience in many of these areas and we expect that we will be very successful working with them.

Roman Gordon, CTI CEO, stated, “We have many companies wanting to represent us but we are very selective. After discussions with Mr. Kazushi Miyauchi we are now very confident in them and that we will do many good things together. We are pleased to have them on our team.”

More about CVAT at www.cavitationtechnologies.com

JPM, JPMorgan Chase & Co.

JPM, with assets under supervision of $1.5 trillion, is a global leader in investment and wealth management. JPM Asset Management�s clients include institutions, retail investors and high-net worth individuals in every major market throughout the world.

JPM Funds has launched an online version of its target date evaluation program, the Target Date Compass. The program provides a framework advisors can use to evaluate design factors such as time horizon, participant behavior, risk management and asset class diversification, and identify those target date strategies that are most closely aligned with the goals of the plan sponsor and its participants.

AQNM, Aquentium, Inc., AQNM.OB

Aquentium (OTCBB: AQNM) is a diversified company with an emphasis on green technologies. The company currently has interests in non-chemical sanitation equipment, alternative energy, waste-to-energy, water treatment, food safety, mining, building materials, affordable housing, re-deployable emergency housing, and recycling.

Aquentium announced their high speed ozone hand dryer as a solution for increased bathroom sanitation and bacteria and virus protection for restaurants. The hand dryer combines high speed drying with ozone in order to sanitize the air and keep the blowers inside the dryer free from bacteria. Most hand dryers have filters that build up with mold and bacteria, especially in high-humidity restrooms. However, the Aquentium hand dryer can effectively sanitize itself. You no longer have to worry about re-infecting people’s hands with a non-maintenanced, old-style hand dryer.

Ozone, long known as a protective shield between humans and the sun�s rays, has a very beneficial use in the food industry. Ozone is approved by the FDA and USDA for direct food contact as well as for sanitation purposes. Research has found that ozone enhances the freshness of fruits, vegetables, seafood and other food products. As an oxidizer, ozone is 51 times more powerful than chlorine and 3,000 times faster at killing bacteria and other microbes. Ozone is effective as a disinfectant at relatively low concentrations and does not leave toxic by-products similar to those related to chlorination.

AQNM�s ozone technology is designed for use with fruits and vegetables to not only extend shelf life but also improve food safety. The Aquentium ozone system requires no chemicals or hot water when the equipment is being used.

AQNM�s ozone equipment installed at any food processor, restaurant, or grocery store, would allow for all fresh fruits and vegetables to be washed thoroughly with ozone water and also help increase the grocery store, restaurant, or food processor�s profits

More about AQNM at www.aquentium.com

Keep a close eye on TAXS, SCHW, PSFT, DISH, PWRM, MMM, CSRH, WFC, CVAT, JPM and AQNM, do your homework, and like always BE READY for the ACTION!

Long-Term Trend for Gold and Silver Is Intact

It's very difficult for a trader to stick to a plan and not let news events dictate decisions. But every once in awhile there are news items that come along and attempt to trip investors up, forcing some to take their eye off the big picture. Many of us understand the long-term potential of precious metals and commodities, but the emotions -- either unbridled enthusiasm or gloom and doom -- of the herd often affect our decisions negatively at short-term turning points. This past week the news out of Japan (iShares MSCI Japan Index (EWJ) affected the majority of investors, who liquidated their positions and ran to the US dollar (UUP) and to long-term Treasuries (TLT) as safe havens, which I believe was a mistake as the G-7 came to the support of Japan.

Margin calls were issued and the fire sale intensified due to the hysteria produced by the doom-and-gloom media. It is important not to become influenced and to not allow news-related items to shake one off a long-term trend. Staying the course during times of great fear or news-related reactions is very difficult, but is necessary if one wants to ride a secular bull trend. You must not allow the news background to take your eye off the ball. Already, I heard from some that they want to give up and throw in the towel, and this is normal during sell-offs. When the times are easy and stocks are breaking new highs everyone wants to buy and it is great to be in the stock market, but when there is a sell-off and when companies pull back to key support, many want to throw in the towel and never want to trade again. Be careful of following this behavior as these sell-offs often turn out to be buying opportunities.

I believe the positions that we are in with precious metals and commodities will continue to maintain a two-year trend. The situation in Japan will force the printing of yen (FXY), putting more pressure on fiat currencies as deficits soar. I believe the geopolitical issues in the Middle East, combined with the Japanese earthquake relief has pushed off any tightening measures from US Central Banks and may even push Bernanke into expanding QE2 into QE3. The rebuilding efforts and monetary stimulus should be beneficial for gold (UGL), silver (AGQ), base metals (DBB), and commodities (DBC).

The US equity market (SPY) is reaching oversold levels not seen since my buy signal in August of 2010. The Japanese earthquake correction may be reaching a climax and a point of capitulation. The S&P has reached oversold levels on the RSI and stochastics. Each time it has reached this level a reversal has occurred. This should benefit mining stocks that have seen forced liquidation due to margin calls. As the 200-day moving average is moving higher, one needs to stay the course and trust the trend.

SPDR Gold Shares (GLD) has paused for two weeks as investors cover margin calls. Selling has occurred across the board and this may signal forced liquidation. As the equity markets stabilize so too should gold and a breakout into new highs may occur shortly as it appears to be setting up for a cup-and-handle breakout, which is indicative of a major move.

Beware of trading on fear rather than facts. It is easy to become distracted by news stories around us. A cold day in July does not mean that autumn is here. A 9.0 earthquake doesn’t mean that Japan is over as many are predicting or that secular trends have reversed. Japan will begin rebuilding as it has done repetitively in the past following natural disasters. Do not be incorrectly drawn to the conclusion that the trends in precious metals or commodities are reversing. We must step back and separate the wood from the forest. Pullbacks in precious metals should be times to add to positions.

Disclosure: I am long GLD.

iShares Rolls Out Nine Ex-U.S. Sector ETFs

iShares, the largest provider of ETFs in the world, announced Friday the latest enhancement to the international component of its ETF platform, rolling out nine new ex-U.S. sector ETFs. The funds will offer investors exposure to both developed and emerging markets, and all nine will feature an expense ratio of 0.48%. The additions give the company 205 ETFs in total, more than the next two largest competitors combined.

“We are expanding our international sector offering with the iShares MSCI ACWI ex US sector funds because as financial advisors increasingly fine tune their clients’ international exposure and institutional investors become more tactical internationally, we can make it easier for them to access the markets more efficiently,” said Noel Archard, Head of iShares Product Research and Development at BlackRock. “The new iShares funds are also a great complement to iShares MSCI-based international product set. The consistency of the indices and the iShares funds facilitates the effective building and managing of international portfolios.”

The funds represent a new twist on sector-specific investing strategies. There are already a number of funds offering exposure to various corners of the U.S. economy, most notably State Street’s SPDRs. And while there are also a number of global sector-specific ETFs on the market, most of these products maintain a heavy tilt towards U.S. equities as well.

The new iShares ETFs will be filling a void in the ETF coverage map, and will also create the potential for investors to make some interesting pairs trades with ETFs by going long a U.S. sector fund and short the related ex-U.S. sector fund (or vice versa).

The new funds are:

• MSCI ACWI ex US Consumer Discretionary Sector Index Fund (AXDI)
• MSCI ACWI ex US Consumer Staples Sector Index Fund (AXSL)
• MSCI ACWI ex US Energy Sector Index Fund (AXEN)
• MSCI ACWI ex US Health Care Sector Index Fund (AXHE)
• MSCI ACWI ex US Industrials Sector Index Fund (AXID)
• MSCI ACWI ex US Information Technology Sector Index Fund (AXIT)
• MSCI ACWI ex US Materials Sector Index Fund (AXMT)
• MSCI ACWI ex US Telecommunication Services Sector Index Fund (AXTE)
• MSCI ACWI ex US Utilities Sector Index Fund (AXUT)

Disclosure: No positions at time of writing.

Disclaimer: ETF Database is not an investment advisor, and any content published by ETF Database does not constitute individual investment advice. The opinions offered herein are not personalized recommendations to buy, sell or hold securities. From time to time, issuers of exchange-traded products mentioned herein may place paid advertisements with ETF Database. All content on ETF Database is produced independently of any advertising relationships. Read the full disclaimer here.

Original post

• More on choosing the right ETF

Better Buy Now: Qualcomm vs. 3M

The following video is part of our "Motley Fool Conversations" series, in which technology editor/analyst Andrew Tonner and industrials editor/analyst Brendan Byrnes discuss topics across the investing world.

Today, our Better Buys series turns its lens on two massive companies that dominate very different businesses -- semiconductors and industrial conglomerates. Andrew pitches smartphone chip maker Qualcomm. Brendan weighs in on 3M's prospects going forward. Listen in to see which stock appears more attractive for investors today.

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Every now and again, we come across a stock that has us so excited we can hardly contain our investing enthusiasm. We've uncovered one such pick with so much promise that we've dubbed it: "The Motley Fool's Top Stock for 2012." We've created a special free report for investors to uncover this soon-to-be rock star. The report highlights a company that is revolutionizing commerce in Latin America, and you can get instant access to the name of this company by clicking here to download it now.

U.S. Futures Rise After Italian Bond Auction

U.S. stocks were higher Tuesday following a relatively smooth Italian bond auction and as eurozone ministers worked to move forward with plans to bolster the region's bailout fund.

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Futures for the Dow Jones Industrial Average were rising 45 points, or 41.9 points above fair value, at 11,543. Futures for the S&P 500 were up 5.8 points, or 5.8 points above fair value, at 1196. Futures for the tech-heavy Nasdaq were rising 4.2 points, or 1 point above fair value, at 2225.

Find out what stocks Link and Cramer are trading before they trade them

Confidence in the ability of European leaders to resolve the region's debt crisis appeared to be improving, with Italy selling €7.5 billion ($10 billion) of debt Tuesday. The country sold three-year bonds at a 7.89% yield and 10-year bonds at a 7.56% yield.The euro was rallying to its highest level against the dollar in a week following the Italian bond sale, up 0.5% against the dollar. European Union finance ministers are expected to agree Tuesday on the specifics on the plan to expand their bailout fund to rein in debt contagion risks. This, after President Barack Obama on Monday pressured EU officials for more aggressive actions on resolving the debt crisis. Moody's said it could downgrade the subordinated debt of 87 banks across 15 countries on worries that governments wouldn't have the capacity to rescue them. Meanwhile, Standard & Poor's warned of a possible downgrade on the outlook on France's triple-A credit rating.London's FTSE 100 was up 0.15% and Germany's DAX was higher by 0.6%. In Asia, Japan's Nikkei Average finished up 2.3% and Hong Kong's Hang Seng index closed up 1.21% . At 9 a.m., the S&P/Case-Shiller home price index for September is expected to fall 3% year over year but inch up 0.1% month over month, according to estimates from Thomson One. The index rose 0.2% between July and August, with half of the 20 cities covered by the survey reporting an increase in home prices.At 10 a.m., the Conference Board's monthly consumer confidence index will be another closely watched metric. Consumer confidence is expected to improve to a reading of 44 after sinking to 39.8 in October. That decline put the index back at lows last seen during the recession of 2008-2009.American Airlines and its parent AMR(AMR) have filed for Chapter 11 bankruptcy protection and CEO Gerard Arpey has retired. The filing comes after the world's third-largest carrier reached a point when it seems unable, after five years of talks, to reach a contract deal with its pilots union. AMR shares fell 63% in premarket trading Tuesday to 60 cents.Thomas H. Lee Partners is interested in buying the U.S. operations of Yahoo(YHOO), sources familiar with the matter told Reuters. THL is hoping to do a leveraged buyout of Yahoo!'s U.S. business, which could be worth $5 billion to $6 billion, and draw on its experience running other media assets such as Nielsen, Clear Channel and Univision to turn around the ailing company, the sources said. Yahoo! shares rose 3.8% to $15.94 in premarket trading Tuesday.AT&T(T) has been working secretly on an 11th-hour deal to salvage its $39 billion merger with T-Mobile USA, The New York Times reported. AT&T is in talks with Leap Wireless(LEAP) to sell it a big piece of T-Mobile's customer accounts and some of its wireless spectrum, the Times reported, citing people involved in the negotiations. AT&T shares rose 2 cents to $27.57.Netflix's(NFLX) credit rating was lowered by Standard & Poor's on expectations the company will report a loss in 2012. S&P cut its assessment of Netflix's credit to 'BB-' from 'BB' and kept its outlook at stable. "Our expectation [is] that escalating content commitments will lower profitability over the intermediate term, international expansion will have a greater impact on overall profitability, and a return of domestic subscriber growth could occur slightly later than we initially expected," S&P credit analyst Andy Liu said in a statement. The stock was down 22 cents to $69.73.A federal judge rejected a proposed $285 million settlement between Citigroup(C) and the Securities and Exchange Commission over a $1 billion mortgage-bond deal and ordered a fresh trial. In his order, Judge Jed Rakoff said the pact was "neither reasonable, nor fair, nor adequate, nor in the public interest." Citigroup shares rose 16 cents to $25.21 in premarket trading Tuesday.January oil futures were rising 50 cents to $98.71 a barrel and February gold futures were up $3.40 to $1,717.90.The benchmark 10-year Treasury was falling 7/32, lifting the yield to 2%, while the U.S. dollar was falling against a basket of currencies, with the U.S. dollar index down 0.5%. Stocks soared Monday on robust Black Friday sales and signs that Europe is making progress toward resolving its sovereign debt crisis.>To contact the writer of this article, click here: Andrea Tse.

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Microsoft Results: Another False Positive for Enterprise Software Market Growth

Right after I tell you not to get too excited about SAP's fiscal-quarter-four and full year 2009 results relative to the outlook for the overall enterprise software market, Microsoft (MSFT) blows the lid off its guidance.

So are all bets off now? Is it time to go full bore back into these enterprise software market providers plus other enterprise-software market leaders Oracle (ORCL) and IBM?

I think not, at least not because of the enterprise software market angle. As described at the link above, SAP's results were consistent with its historical seasonality. Similarly, Microsoft's higher than guidance results appear to be almost all Windows 7 announcement timing and Windows 7 Technology Guarantee Program/deferred-revenue driven. To be specific, Microsoft says in its 10-Q:

"The OEM revenue increase was primarily driven by PC market growth, higher Windows attach rates across all regions, channels, and types of PCs and the restoration of normal OEM inventory levels, offset in part by PC market changes, including stronger growth of consumer PCs versus business PCs and of emerging markets versus developed markets." [emphasis added]

Windows 7 retail sales did well. Some of that may have been driven by enterprises but I would not bet on it.

Microsoft often gets lumped in with SAP and Oracle by critics of the enteprise-software busiess model that depends on maintenance and other services revenue streams. The Server and Tools Division results illustrate that Microsoft should not be looked at in that way. The Microsoft Business Division revenue was down 7% (representing both consumer and business customers) and even some of this division's growth revenue substreams were based on deferred accounting.

As with the SAP announcement, beating expectations is still better than missing targets. But there are extenuating circumstances in both cases that still argue that IT budgets haven't yet freed up.

Advanced Energy Gains Inverter Market Share by Acquiring PV Powered

by Eric Wesoff

The global solar inverter market is roughly $2 billion and growing healthily, along with the PV market. But market dynamics in the inverter field are very different than in the solar module field. While the biggest PV module vendors, First Solar (FSLR) or SunTech (STP) have market shares in the 15 percent range -- the PV inverter market is dominated by a five hundred pound gorilla -- SMA with a market share greater than 38 percent. The other hundred inverter companies have to content themselves with dividing up the remaining 60 percent of the market, although there are certainly different inverter sectors -- residential, commercial and utility.

An obvious strategy to gain market share quickly is acquisition. That's just what Advanced Energy Industries (Nasdaq:AEIS) has done in announcing the acquisition of PV Powered. PV Powered, a privately-held Bend, Oregon-based inverter company will soon be a wholly owned subsidiary of Advanced Energy.

While SMA is a leader in European residential applications, companies like Advanced Energy, PV Powered, Xantrex (XARXF.PK), Satcon (SATC), and Solectria are dominant in the U.S. market. PV Powered is profitable, according to the firm, and has shipped over 16,000 units since 2003.

I spoke with Gregg Patterson, CEO and Erick Petersen, the Vice President of Sales and Marketing at PV Powered. The acquisiiton is not just about added market share. For PV Powered, Advanced Energy [AE] gives it international reach and the project "bankability" that is necessary in the maturing solar industry. AE had full year 2009 sales of $186.4 million, 43.3% below sales of $328.9 million in 2008 which reflects a drop in its semiconductor business.

PV Powered boasts a 97 percent CEC efficiency for its inverter products. In Patterson's view -- PV Powered and AE are the innovation leaders in this market and the leading U.S. inverter suppliers. AE's 97.5 percent efficient bipolar, transformerless design makes it a leader in utility-scale applications. PV Powered transformer-based products focus on residential and commercial applications although its 260 kilowatt unit is used as a building block in 2- or 3-megawatt projects. AE's high-voltage DC and transformerless solution allows direct connection to medium voltage for utility-scale usage. PV Powered’s commercial inverters offer the industry’s first comprehensive 20 year extended warranty.

When queried about microinverters and DC-to-DC boost products, the PV Powered CEO had a clear leaning towards the DC-to-DC boost products which work in tandem with a centralized inverter. Patterson said that microinverters are more of a niche product and that the DC-to-DC products address a far different problem. He feels that the DC-DC solution is a technically more comprehensive approach to a bigger set of challenges than microinverters are addressing, and the microinverter's role in the market is in residential applications. Enphase might differ with that view.

Patterson said, "We don't see microinverters being competitive on cost in the long-term with centralized inverters." PV powered has a collaborative effort with DC-boost firms eIQ Energy, Tigo Energy, Phobos Energy and others, to evaluate and advance DC-to-DC technology to see "if the promise delivers in the real world" and to "demonstrate the reality under sun."

The CEO says that he's heard from customers and they say that there are two inverter companies doing things differently on efficiency and reliability: PV Powered and Advanced Energy.

Hugh Kuhn, the COO and SVP of Solar Power Partners, positioning himself for price negotiations, had this to say:

"Solar Power Partners was thrilled to hear the news of the acquisition of PV Powered by AE, for we are customers of both companies and understand the great synergies that the combination will bring to the market. We expect to see considerable change in the power conditioning end of the business in the next few years, and PV Powered and AE are emerging as new leaders in terms of innovation, quality, reliability, functionality and price. The combined firm should be a highly competitive force in the industry."

Disclosure: No positions

Youth Joblessness Plays Role in Protests

What does the Occupy Wall Street movement have in common with the protests that spread throughout the Middle East and Europe this year? They all may owe some of their popularity to the greater-than-average number of unemployed young people in these regions.

The unemployment rate for 15- to 24-year-olds worldwide is expected to decline by an ever-so-slight 0.1% this year, to 12.6%, but only after having shot up to 12.7% in 2009 and remaining stuck at that rate last year, according to a report from the International Labour Organization. As daunting as the global unemployment rate may be, it's much worse in many of the countries that have experienced protests and civil unrest this year, which may not be a coincidence.The unemployment rate for young people in the U.S. stood at 18.4% last year, well above the global average and an increase of nearly 8% from the rate in 2007 before the recession shook the labor market, the data in the report show. Likewise, countries including Italy and Greece, which have experienced widespread protests, have seen their youth unemployment rates skyrocket to 27.8% and 32.9%, respectively. In the Middle East, which was swept by uprisings, the unemployment rate for young people was 25.5%, though this is relatively unchanged from before the global financial crisis took hold.According to the report, rampant unemployment among youth has contributed to a "collective frustration [that] has been a contributing factor to protest movements around the world this year, as it becomes increasingly difficult for young people to find anything other than part-time and temporary work."While the report does not specifically mention the U.S., it does run through the various ways disenfranchised youths may react to a lousy labor market in various countries, whether it's emigrating to a better labor market or resorting to drugs -- both of which have happened in Ireland -- or opting to protest the current state of affairs with varying degrees of violence, as took place in Greece, Italy, the United Kingdom and, of course, parts of the Middle East.

That said, the ILO's report offers a reminder that unemployment rates don't tell the full story of the realities on the ground in each region. There are many countries in South Asia, for example, that have comparatively low youth unemployment rates in part because these areas are poorer and most young people must work jobs that are often low-paying with long hours to support their families. Then there are the unique political and social frustrations in certain countries -- as seen in the Middle East -- that come from having young people struggle with underemployment while the government fosters the prosperity of a strikingly wealthier class of society.

Nonetheless, in reading the report's diagnosis of protests in each country, it's difficult not to see strong parallels to what's happening here, particularly in this passage referring to the previous year's report from the ILO:"[We] warned of the possibility of 'scarring', whereby the bad luck of the generation entering the labor market in the years of the Great Recession brings not only current discomfort (from unemployment, underemployment and the stress and social hazards associated with joblessness and prolonged inactivity), but also possible longer-term consequences in terms of lower future wages and distrust of the political and economic system. It is exactly the latter consequence that has come to play as one aspect of the Arab Spring."One could easily substitute the phrase "Occupy Wall Street" in place of "Arab Spring" without skipping a beat.Though the Occupy Wall Street protests in New York and other cities may not explicitly focus on youth unemployment -- or really any one issue in particular -- many of those marching are in their 20s and calling attention to the plight of students who entered college with promises of a job on the other side, only to graduate with whopping student loan debt and rampant unemployment, and who are now calling for the political and economic system to tilt more in their favor.As much as anything else, then, the Occupy Wall Street protest may serve as a way for disenfranchised young people to make sure they are heard as opposed to forgotten.Follow TheStreet.com on Twitter and become a fan on Facebook.>To order reprints of this article, click here: Reprints

Buying Ford For The Dividend? Consider This Instead

Ford (F) recently announced that it would be paying a quarterly divided of 5 cents a share. This news helped boost shares of Ford, but in reality, the dividend is very small. The dividend will amount to 20 cents a share per year, or 1.8%. While better than nothing, this dividend is not big enough to entice dividend investors.

If you are interested in dividends, then the better buy is the Ford preferred (F.PA). F.PA is currently yielding just over 7%. If the company can afford to start paying a dividend on the common stock, then preferred shareholders are in a very good place. The company is in a strong financial position and will be able to make payments on the preferred shares. Evidence for Ford's strong financial position lies is its nine consecutive profitable quarters. Also, Ford has over 4 dollars a share in cash on hand. While Ford does have a significant amount of debt, the large cash position means the company is not at risk for a funding crisis.

An investment in Ford common stock represents a bet on a stronger global economy. Ford does a lot of business in Europe, so an investment in Ford common stock is a major bet on Europe. If Europe falls apart, then earnings will go down significantly, driving the stock down too. The preferred shares are a more of a bet on the health of Ford the company, not the global economy. If the global economy gets bad enough, then Ford preferred shares are at risk, but a slowdown in growth will not hurt the preferred stock. The chart below shows Ford common stock (orange) vs. Ford preferred stock (blue) over the past year.

Click to enlarge

(Source: cnbc)

While shares of Ford common stock have gone down significantly due to weakness in the global economy, Ford preferred shares have done well because Ford the company is very healthy.

The bottom line is that if you are buying Ford for the dividend, you should be buying Ford preferred (F.PA) instead. If you want to bet on a stronger global economy including Europe, then Ford's common stock is the better buy.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Gold, Silver Tanking Amid Positive U.S. Jobs Report, Euro Zone Measures

Gold and silver were selling off sharply Thursday morning, even as the U.S. weekly jobs report came in better than expected and European Central Bank chief Mario Draghi announced measures that will add liquidity to the euro zone banking system and possibly stimulate greater bank lending.

Spot gold was down around 1.5%, with a bid price of $1,716.80 per ounce and an ask price of 1,717.80 at 10:15 a.m. Gold had traded as high as $1,757.80 and as low as $1,707.10. The London afternoon reference price fix came in at $1,715, according to Kitco market data.

Spot silver was down nearly 1.7%, bid at $31.96 with an ask price of $32.06. The morning high as of time of writing was $33.35 and the low was $31.64. Monday’s reference price was set at $32.64 in the London a.m.

One Hong Kong market dealer said volume is falling in the precious metals market before EU leaders sit down to negotiate fundamental changes to the EU charter that would forestall any worsening of the current euro zone sovereign debt crisis and avoid future crisis.

In addition to cutting its benchmark bank lending rate from 1.25% to 1%, matching a record low, Mario Draghi announced the ECB will make “unlimited cash” available to euro zone banks in the form of three-year loans. The ECB also is loosening its collateral criteria, which will further ease banks’ ability to borrow funds from the EU central bank, as well as reducing the ratings criteria for asset-backed securities it will accept as collateral.

Here on the domestic front, the Labor Department reported that weekly jobless claims fell 23,000 to a seasonally adjusted 381,000 last week, a nine-month low. The less volatile four-week moving average dropped 3,000 to 393,250, its lowest level since early April. The results come on the heels of last week’s report that November’s headline unemployment rate fell to 8.6%.

Turning to stock market trading, gold and silver trusts were heading south along with bullion.

• The SPDR Gold Trust (NYSE:GLD) was showing losses of nearly 1.5%.
• The iShares Gold Trust (NYSE:IAU) was down around 1.5%.
• The iShares Silver Trust (NYSE:SLV) was moving lower, down some 2.3%.

The SPDR Gold Trust’s physical gold holdings dropped 3 metric tons to a 10-day low of 1,295 metric tons, the trust announced yesterday. The iShares Silver Trust added 30 metric tons to its physical holdings, bringing its total silver holdings to 9,726 metric tons, the highest level in more than three weeks. Technically, silver remains within a three-month support zone that ranges from $30 to $35.71 per ounce, Commerzbank analyst Axel Rudolph wrote in his latest client report.

Gold and silver mining ETFs also were showing steep losses.

• The Market Vectors Gold Miners ETF (NYSE:GDX) was around 2.6% lower.
• The Market Vectors Junior Gold Miners ETF (NYSE:GDXJ) was down some 3.5%.
• The Global X Silver Miners ETF (NYSE:SIL) was down around 2.1%.

Gold mining shares were sharply lower as well.

• Agnico-Eagle Mines (NYSE:AEM) was showing losses of more than 2.6%.
• Barrick Gold Corp. (NYSE:ABX) was down around 2.6%.
• Goldcorp (NYSE:GG) was showing losses of about 2.6% as well.
• Newmont Mining Corp. (NYSE:NEM) was around 2.5% lower.
• NovaGold Resources (AMEX:NG) was down more than 2.7%.

Silver mining shares also were sliding lower.

• Coeur d’Alene Mines Corp. (NYSE:CDE) was moving lower, down nearly 1.3%.
• Hecla Mining (NYSE:HL) was lower, down nearly 2.6%.
• Pan American Silver Corp. (NASDAQ:PAAS) was down about 1%.
• Silver Wheaton Corp. (NYSE:SLW) was showing losses of more than 2.1%.
• Silver Standard Resources Inc. (NASDAQ:SSRI) was between 2.1% and 2.4% lower.

As of this writing, Andrew Burger did not own a share in any of the aforementioned stocks. Adrian Ash of BullionVault contributed to this report.

Dow Ready to Open Higher

The market looks set to extend yesterday's gains, while European trading sees Shell and Nokia slide lower.

Following Wednesday's 89-point rise, the Dow Jones Industrial Average (INDEX: ^DJI  ) seems ready to recover further ground lost earlier in the week. In early pre-market trade, the futures market was pricing a 61-point advance and implied an opening beyond 12,800.

Economic data may influence today's trading, with trade-deficit figures, weekly jobless numbers, and producer prices all to be announced before the open. Certainly there was little guidance from Asia, where markets recorded modest gains overnight, or from early trading in Europe, where indexes were mostly mixed. Ongoing doubts about Spanish and Italian bonds, however, did knock a further 1%-plus from Madrid- and Milan-traded stocks.

The ADRs of Royal Dutch Shell (NYSE: RDS-A  ) and Nokia (NYSE: NOK  ) may be active at the opening bell.

Shell, Europe's largest oil producer, saw its shares slide 4% in London after acknowledging a "light sheen" of oil had been discovered between two of the group's platforms in the Gulf of Mexico. The sheen is said to be 10 miles long and one mile wide.

Meanwhile, Nokia fell a further 5% in European trading as doubts were raised about the mobile phone group's credit status. News yesterday of an operating loss within the firm's handset division wiped 15% off the stock, and some analysts now reckon a junk rating is on the horizon.

Back home, earnings season continues tonight, with Google (Nasdaq: GOOG  ) being a particular highlight. The search engine reports its first-quarter figures after-hours and, following an earnings miss three months ago, some observers expect no such problems this time around. Quarterly earnings are predicted to rally 19% to almost $10 a share.

And just so you know, our all-star team of analysts has included five of their favorite companies in our brand-new free report titled "5 Stocks Investors Need to Watch This Earnings Season." Included in the report are the names of a natural gas company, a technology company and a rapidly growing retailer that could be poised to pop after they report earnings. Full access to the report is free!

Netgear Meets on Revenues, Misses on EPS

Netgear (Nasdaq: NTGR  ) reported earnings on July 26. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended July 1 (Q2), Netgear met expectations on revenues and missed estimates on earnings per share.

Compared to the prior-year quarter, revenue increased and GAAP earnings per share improved.

Margins shrank across the board.

Revenue details
Netgear booked revenue of $320.7 million. The eight analysts polled by S&P Capital IQ predicted a top line of $324.3 million on the same basis. GAAP reported sales were 10% higher than the prior-year quarter's $291.2 million.

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

EPS details
EPS came in at $0.64. The seven earnings estimates compiled by S&P Capital IQ forecast $0.68 per share. GAAP EPS of $0.56 for Q2 were 3.7% higher than the prior-year quarter's $0.54 per share.

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

Margin details
For the quarter, gross margin was 29.5%, 170 basis points worse than the prior-year quarter. Operating margin was 9.7%, 60 basis points worse than the prior-year quarter. Net margin was 6.7%, 40 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $344.5 million. On the bottom line, the average EPS estimate is $0.73.

Next year's average estimate for revenue is $1.36 billion. The average EPS estimate is $2.86.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 2,284 members out of 2,356 rating the stock outperform, and 72 members rating it underperform. Among 634 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 625 give Netgear a green thumbs-up, and nine give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Netgear is outperform, with an average price target of $42.63.

Internet software and services are being consumed in radically different ways, on increasingly mobile devices. Does Netgear fit in anymore? Check out the company that Motley Fool analysts expect to lead the pack in "The Next Trillion-dollar Revolution." Get instant access to this free report.

• Add Netgear to My Watchlist.

Why Invest in Tax Certificates and Tax Deeds When the World Economy Is In Such A Terrible Condition?

No one will give you any argument that the world economic situation is in terrible shape and the unemployment rate is the highest it has been in decades. Everyone is wondering what can he/she do to improve his/her current economic situation when the economy looks so bleak. The stock market and mutual funds perform so badly that many people have fled from them trying to save as much of their asset value as they possibly can. They seek other places to invest their money and oftentimes park it in money market accounts and/or savings accounts, each paying paltry yields of 2% or less (usually less) return on their money.

Tax Certificates and Tax Deeds are another matter, with proven double digit and considerably much higher returns on initial investments. The best part about owning Tax Certificates and ultimately Tax Deeds is you are in full control or as much control of your money as you desire. There are many avenues to purchase Tax Certificates and Tax Deeds. Many states have legislation set in place allowing their respective counties to sell them.

Tax Certificates are liens placed on properties by the county the properties are located in for non payment of property taxes. As such the lien(s) are in first position ahead of bank loans and other liens placed on the property. This affords the buyer/investor (anyone with a Social Security number or a Tax ID number) a very sizable return on their investment and giving them a great deal of protection as the value of Tax Certificate(s) are approximately 1% +/- of the value of the property.

Tax Deed applications are the next step in acquiring property for non payment of property taxes. After a certain period of time an investor can (and should) apply for the Tax Deed(s) on the Tax Certificate(s) he/she owns. Oftentimes this can be done from the comfort of your home online computer. If the property owner or any other interested party does not pay the past due property taxes (your Tax Certificate plus all the stated interest due you plus other costs you incur), then you (the investor) would very likely own the property for a very small price in relation to the property value. Selling the Tax Deed is a very easy process as there are a large number of investors desiring to acquire the properties at a fraction of the true value.

For free information to learn more about Florida Tax Certificates and Tax Deeds please contact me at: http://www.taxcertificates4sale.com or email: taxman813777@yahoo.com

4 Ways Home Depot Can Dominate for Years

A couple of years ago, I used to joke about trips to Home Depot (NYSE: HD  ) : "Hopefully there will be a contractor shopping there who can answer my questions." But if you've visited Home Depot lately, you've probably noticed changes, such as more helpful sales associates, a wider selection of products, and streamlined check-out. Do these changes and more make Home Depot an investment you should consider?

A solid foundation
I think so. Home Depot, the industry leader in home improvement, is growing at a time when both the economy and the housing market are in a slump. In January 2009, during the depths of the crisis, Home Depot's revenue growth was negative 17.28%, but it has since steadily risen (to 4.39%). As an investment, Home Depot has outperformed the S&P 500 over the past two years, and from Q2 to Q3 2011, it increased its quarterly dividend by 16%.

Over the past 30 years, Home Depot has been building the following strengths, and these strengths have it well-positioned for the future:

It is the most-recognized brand when it comes to home improvement.

It has more than 2,200 locations worldwide, including in all 50 states, Canada, Mexico, and China.

It has a renewed focus on its core value of providing an exceptional customer experience.

It has made logistical improvements that deliver the right products to the right stores at the right time.

Opportunities for dominance
I've owned a home for about seven years and am usually working on some sort of home improvement project a couple of weekends a month. Home Depot has definitely seen its fair share of business from me, but so have its competitors. The following are some opportunities that would help Home Depot dominate for years (and convert me to an exclusive customer):

Expand hiring knowledgeable sales associates. I should be able to walk into any Home Depot and be confident that I'll walk out with a solution.

Improve the quality of certain products. I buy cabinetry from Lowe's, paint from Sherwin-Williams, and hand tools and appliances from Sears simply because they have better products.

Provide cutting-edge online solutions. Less than 1% of Home Depot's revenues come from online, and I'd love to see something creative to boost them. Imagine turning on your mobile device camera and having an online Home Depot associate provide recommendations for your project.

Continue international growth. With 274 international locations, Home Depot definitely has the experience of setting up shop abroad. Home Depot should target more countries and definitely expand its presence in China beyond seven stores.

Take action
You don't want to miss out on Home Depot when home improvement makes its triumphant return. To keep tabs on the stock, simply add Home Depot to your watchlist.

For another fast-growing big-box retailer with massive potential, click here to get the details on The Motley Fool's Top Stock for 2012, called "the Costco of Latin America."

How Forex Spread Betting Works – Forex News Now

How Forex Spread Betting Works Forex News Now NEW YORK (ForexNewsNow) � When you think of trading Forex, and the possibilities that it has for profit, does spread betting come to mind? Most of us think of the much publicized standard Forex online markets, which include pre-specified �lot� sizes … USD/JPY Technical Analysis for the Week of September 12, 2011ForexTV.com NZD/USD Outlook � September 12-16Business Insider Forex – USD/JPY weekly outlook: September 12-16Forex Pros Daily Markets all 8 news articles »

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Why Joining the Dow Is the Kiss of Death

You might think companies would fall over themselves to join the Dow Jones, and shareholders would find stability in the index’s ranks. But the truth is that joining the list of 30 components is a stomp on the neck rather than a stamp of approval.

The reason appears to be that Wall Street “experts” in charge of the index focus on the latest fad investments; stocks that are peaking rather than corporations that are truly representative of the U.S. economy.

Take a look at this list of the last 12 additions to the Dow and how they have performed since joining the index:

Company	Ticker	Date Added	Gain/Loss	Dow’s Gain/Loss
Home Depot	HD	11/1/1999	-38%	1%
Intel	INTC	11/1/1999	-50%	1%
Microsoft	MSFT	11/1/1999	-47%	1%
AT&T	T	11/1/1999	-45%	1%
AIG	AIG	4/8/2004	-97%	3%
Pfizer	PFE	4/8/2004	-51	3%
Verizon	VZ	4/8/2004	-14%	3%
Bank of America	BAC	2/19/2008	-67	-15%
Chevron	CVX	2/19/2008	-8%	-15%
Kraft Foods	KFT	11/22/2008	-12	-8
Cisco Systems	CSCO	6/8/2009	6	20%
Travelers	TRV	6/8/2009	15	20%

That’s pretty disturbing if those in the ivory towers of investing make the rookie mistake of believing that today’s dominant companies will be relevant�– or even exist� — a few years down the road.

Obviously, performance alone shouldn’t be cause for inclusion in the list of 30 Dow components. And one could argue that the inclusion of fashionable stocks at their peak is a necessary evil, since the broader economy and stock market suffer in kind as these sectors decline. The failure of AIG, for instance, should have brutalized the Dow in the same way it wreaked havoc in all corners of the investment world. It�s only fair that the boom and bust nature of our economy is represented in the Dow components.

But the fact that the most recent additions are consistently the worst performers is telling.

There’s a laundry list of objections that investors have against the Dow. Some feel the list of only 30 components allows the index to swing too much based on a few outliers. Others believe the makeup of the list itself is the biggest problem, notably leaving out tech giants Apple Inc. (NASDAQ: AAPL) and Google Inc. (NASDAQ: GOOG), while including Alcoa (NYSE: AA), which has a market cap of a mere $11 billion.

Critics should add the fair-weather changes to the index to their list of complaints. After all, an index that is widely quoted by the mainstream media as a synonym for “the stock market” shouldn’t be skewed towards the flavor of the month.

As of this writing, Jeff Reeves did not own a position in any of the stocks named here.

The Best & Worst Cheap Stocks to Own Now – Includes the 3 small caps under $10 a share that could double your money by year’s end and the 26 time bombs to avoid like the plague. Plus, the five red flags for buying cheap stocks. Get your FREE report here.

SAP to Acquire Sybase in All-Cash Deal Worth $5.8 Billion

�Takes on Oracle for Market Share in Corporate Database Space

By Michael Bogan
Beacon Contributing Writer

SAP AG (NYSE: SAP) announced after the market close Wednesday in New York it will by Dublin, Calif.-based Sybase Incorporated (NYSE: SY) in an all-cash deal of $65 per share of Sybase common stock.

Shares of Sybase rocketed $14.57 on the news to close at $56.14, a 35 per cent gain on heavy volume of 28.9 million shares.

The acquisition follows the abrupt resignation of SAP CEO Leo Apotheker in February, and is the first major decision of new co-CEOs Bill McDermott and Jim Hegemann in the company’s battle with database sector leader Oracle Corporation. Analysts cite mounting concerns over SAP’s earnings and lagging competitive position in the database market led to the Apotheker resignation.

With the acquisition of Sybase, SAP’s war for share in the corporate database software market is expected to intensify as the business Sybase brings to SAP adds more direct product line competition with Oracle.

Til now, Walldorf, Germany-based SAP has developed applications in-house on its road to becoming the world’s leader business-software maker. It’s rarely had to pay a premium to enter a market.
SAP’s previous significant acquisition was the purchase of business-intelligence software maker Business Objects of France in 2008 for $6.8 billion.

Oracle, on the other hand, has gained meaningful share in SAP’s primary market along with other markets through acquisitions beginning in 2004, totaling more than $40 billion.

Database applications store information for companies to retrieve later, a primary business Oracle leads with more than 40 per cent market share worldwide. Sybase holds only 3 per cent of the market for database application, a market SAP can begin to compete directly with powerhouse Oracle if SAP’s acquisition of Sybase finalizes.

In addition, the acquisition of Sybase gives SAP valuable technology in the rapidly growing mobile device business-software market. SAP said corporate database applications that run on smartphones is technically difficult and will be more easily developed with the acquisition of Sybase.

Moreover, Sybase’s network of more than 4 billion mobile interconnected subscribers come with the acquisition of Sybase.

SAP co-CEO McDermott called the acquisition a “game-changing transaction� which synergizes �the world’s best business software with the world’s most powerful mobile infrastructure platform.�

SAP said it expects the acquisition to complete during the third quarter contingent upon approval from the regulators in Europe and the US. SAP also said Sybase earnings will be fully accretive immediately following final execution of the deal.

Was That the Top for Silver?

I know the article headline above is likely to generate quite a bit of emotion from both bulls and bears (mostly bulls since I never hear a bearish argument for Silver), but I wanted to at least entertain the idea that the extreme in Silver is here. There have been a number of comparisons equating Silver's price rise to that of the NASDAQ in the 6 years leading up to 1999, whereby the price gains and rate of ascent have been strikingly similar. The volume of Silver ETFs have exploded in recent weeks, with what used to be full trading day volume now occuring within the first two hours of the trading day. In addition, a popular closed-end fund that tracks the price of Silver is reportedly trading at a 20% premium to NAV, which is of course like saying one is willing to pay $1.20 for $1.00 (a not so good trade in my honest opinion).

No one of course knows if prices are too high except with the benefit of hindsight (which is one reason I prefer looking at investments relative to another, instead of in absolute terms). However, I wonder if we are at the edge of some kind of a mean-reversion moment for all commodities, and more specifically Silver. I ran a screen of over 800 ETFs/ETNs to identify those which are furthest away from their respective 20 day moving averages. I've included leveraged funds in the screen to provide some context.

The above are the 10 most extreme ETFs/ETNs relative to their respective 20 day moving averages. What is most incredible about this list is that Silver on an unleveraged basis (SLV) ranks 2, and is further away from its 20 day moving average than many 3x leveraged funds! The extreme nature of the price rise is worth considering as a contrarian trade, especially in light of recent performance when compared to other investments. So once again, while no one can predict tops and bottoms except with perfect hindsight, it is worth considering that the recent price action may warrant skepticism that we are actually much closer to a near-term top than a longer-term bottom.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. Pension Partners, LLC, and/or its clients may hold positions in securities mentioned in this article at time of writing.

7 High-Growth Small-Cap Stocks With Strong Buy Ratings

Some small-cap companies may appear to be underdogs, but with the right analysis, these companies may be on the fast track to becoming winners. All of the businesses in our list today have been rated as "Strong Buy" by industry analysts. We ran an additional screen to find small caps that have great projected earnings. Take a look at the quick summary below to get an idea of where to start your research.

EPS growth (earnings per share growth) illustrates the growth of earnings per share over time. The 5-Year Expected EPS Growth Rate is a long term annual growth estimate, where the growth projections are made by analysts, the company or other credible sources.

We first looked for small-cap stocks. We then looked for companies that analysts rate as "Strong Buy" (mean recommendation <2). We then screened for businesses with estimated high-growth, with 5-year projected EPS growth above 25%. We did not screen out any sectors.

Do you think these small-cap stocks are in strong positions for future growth? Use our screened list as a starting point for your own analysis.

1) OSI Systems, Inc. (OSIS)

Sector:	Technology
Industry:	Semiconductor Equipment & Materials
Market Cap:	$1.26B
Beta:	0.97

OSI Systems, Inc. has Analysts' Rating of 1.50 and a 5-Year Projected Earnings Per Share Growth Rate of 37.00%. The short interest was 3.67% as of 07/27/2012. OSI Systems, Inc., together with its subsidiaries, designs and manufactures electronic systems and components for homeland security, healthcare, defense, and aerospace markets worldwide. The company operates in three divisions: Security, Healthcare, and Optoelectronics and Manufacturing. The Security division provides security and inspection systems under the Rapiscan Systems name.

2) Liquidity Services, Inc. (LQDT)

Sector:	Services
Industry:	Catalog & Mail Order Houses
Market Cap:	$1.28B
Beta:	0.86

Liquidity Services, Inc. has Analysts' Rating of 1.40 and a 5-Year Projected Earnings Per Share Growth Rate of 30.33%. The short interest was 14.19% as of 07/27/2012. Liquidity Services, Inc. operates various online auction marketplaces for surplus and salvage assets in the United States. Its auction marketplaces include liquidation.com, which enables corporations and selected government agencies located in the United States to sell surplus and salvage consumer goods and capital assets.

3) NPS Pharmaceuticals, Inc. (NPSP)

Sector:	Healthcare
Industry:	Biotechnology
Market Cap:	$681.45M
Beta:	0.60

NPS Pharmaceuticals, Inc. has Analysts' Rating of 1.30 and a 5-Year Projected Earnings Per Share Growth Rate of 80.00%. The short interest was 7.12% as of 07/27/2012. NPS Pharmaceuticals, Inc., a clinical-stage biopharmaceutical company, focuses on the development of therapeutic products for gastrointestinal and endocrine disorders, and various medical needs. The company's primary clinical programs include two therapeutic peptides to restore or replace biological functions comprising GATTEX, a Phase 3 clinical trial product for short bowel syndrome; and Natpara, a recombinant human parathyroid hormone 1-84, which is in Phase 3 clinical development trials. It also develops NPSP790 and NPSP795 calcilytic compounds that are in Phase I trials for the treatment of rare endocrine disorders.

4) The Active Network, Inc. (ACTV)

Sector:	Technology
Industry:	Application Software
Market Cap:	$834.21M
Beta:	-

The Active Network, Inc. has Analysts' Rating of 1.30 and a 5-Year Projected Earnings Per Share Growth Rate of 32.50%. The short interest was 6.39% as of 07/27/2012. The Active Network, Inc. provides organization-based cloud computing applications services to business customers in North America, Europe, and internationally. The company offers ActiveWorks, an organization-based cloud computing platform, which transforms the way organizers record, track, manage, and share information regarding activities and events. Its ActiveWorks back-office system pulls customers' participant management, operational reporting, volunteer management, and service and payment processing functions into one hosted system.

5) Team Inc. (TISI)

Sector:	Services
Industry:	Business Services
Market Cap:	$599.09M
Beta:	1.34

Team Inc. has Analysts' Rating of 1.50 and a 5-Year Projected Earnings Per Share Growth Rate of 27.53%. The short interest was 3.75% as of 07/27/2012. Team, Inc. provides specialty maintenance and construction services for maintaining high temperature and high pressure piping systems and vessels that are utilized in heavy industries. It offers inspection and assessment services, such as inspection and evaluation of piping, piping components, and equipment; field heat treating services, including electric resistance and gas-fired combustion; leak repair services comprising on-stream repairs of leaks in pipes, valves, flanges, and other parts of piping systems and related equipment; and fugitive volatile organic chemical emission leak detection services consisting of identification, monitoring, data management, and reporting. The company also provides hot tapping services, such as hot tapping, Line-stop, and Freeze-stop services; field machining services, including the use of portable machining equipment to repair or modify machinery, equipment, vessels, and piping systems, as well as flange facing, pipe cutting, line boring, journal turning, drilling, and milling services; and technical bolting services comprising the use of hydraulic or pneumatic equipment with bolt tightening techniques for leak-free connections, plant maintenance, and expansion projects, as well as bolt disassembly and hot bolting services.

6) Bona Film Group Limited (BONA)

Sector:	Services
Industry:	Entertainment - Diversified
Market Cap:	$356.29M
Beta:	-

Bona Film Group Limited has Analysts' Rating of 1.40 and a 5-Year Projected Earnings Per Share Growth Rate of 45.47%. The short interest was 0.13% as of 07/27/2012. Bona Film Group Limited engages in the distribution of films in the People's Republic of China and internationally. Its film distribution activities include film sourcing, which comprises identifying film projects with commercial potential and securing film distribution rights; print and marketing that includes coordinating the distribution of film prints to theater circuits, as well as conducting marketing and publicity campaigns to promote the films to their target audiences; exhibition, which comprises negotiating the terms of exhibitions of films in domestic and international movie theaters, as well as through non-theatrical distribution channels; and film advertising that includes the sale of advertising time immediately prior to the start of the theatrical screening of a film, in-film product placements, and cross-promotion campaigns. The company is also involved in the film investment and production, television production, and movie theater operation activities; and provision of talent agency services to artists.

7) MAP Pharmaceuticals, Inc. (MAPP)

Sector:	Healthcare
Industry:	Drug Manufacturers - Other
Market Cap:	$437.21M
Beta:	2.70

MAP Pharmaceuticals, Inc. has Analysts' Rating of 1.40 and a 5-Year Projected Earnings Per Share Growth Rate of 49.00%. The short interest was 17.58% as of 07/27/2012. MAP Pharmaceuticals, Inc., a development stage company, focuses on the enhancement of the therapeutic benefits and commercial attractiveness of proven drugs in the field of neurology through its formulation and inhalation technologies. The company's lead product candidate includes LEVADEX, an orally inhaled version of dihydroergotamine mesylate (DHE) that has completed Phase III clinical trials for the acute treatment of migraine in adults. Its proprietary technologies consist of particle creation and formulation technologies, which can be applied to small or large molecules, including peptides and proteins; and aerosol delivery platforms, such as TEMPO inhaler, a pressurized metered dose inhaler (MDI) that dispenses drug automatically when the patient inhales.

*Company profiles were sourced from Finviz. Financial data was sourced from Finviz and Yahoo Finance.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Stocks finish higher on hopes for central bank action

NEW YORK(AP)�New optimism that leaders in Europe will take decisive action to address their debt crisis and the Fed will act to help the faltering U.S. economy pushed stocks higher for a second day Friday.

The Dow Jones industrial average topped 13,000, ending the day 187.73 points higher, and finishing with a gain for the week. Major indexes were strongly higher.

The Dow closed up 1.5% on the day to 13,075.66; the broader Standard and Poor's 500 stock index ended up 25.95 points or 1.9% to 1,385.97; the Nasdaq composite index finished up 64.84 points, or 2.2%, at 2,958.09.

The tech-heavy Nasdaq finally rebounded after a terrible week in which even the impervious Apple seemed to disappoint. Though the Nasdaq rose Friday, many analysts said the downward trend has not changed.

Shares of Facebook plunged even though the social network giant posted an increase in revenue growth late Thursday. Shares earlier had touched lows not seen since the company's debut on the Nasdaq in May that many considered a disaster launch. Shares ended the day down 11.7% to $23.70 after being down as much as 14% in the morning. The previous low, reached last month, was $25.52.

Markets began to rally Thursday after European Central Bank President Mario Draghi said fiscal policy leaders would do "whatever it takes" within the organization's mandate to preserve the euro.

Stock trend
Dow Jones industrial average, five trading days

That appeared to carry more weight than the latest numbers on U.S. gross domestic product, released Friday by the Commerce Department.

The U.S. economy grew at an annual rate of 1.5% from April through June as Americans, uneasy about jobs, cut back sharply on spending. The slowest growth in a year will do little to alleviate fears that the economy, now three years removed from recession, is stalling.

However, first-quarter growth was not as bad as previously thought. The Commerce Department raised its estimate to a 2% rate, up from 1.9%, for the January-March quarter.

Top Stocks For 5/21/2012-1

Dr Stock Pick HOT News & Alerts!

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Monday Dec. 21, 2009

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MPPC, MyPhotopipe.com, MPPC.PK

myPhotopipe.com, Inc. (Pink Sheets: MPPC) is a web-based online provider of digital photo processing, photo finishing, photo sharing, and related services. The Company’s unique blend of 1000 print options, combined with manual print inspections and professional color management, have positioned myPhotopipe.com as one of the fastest-growing providers of digital photography services for professionals and serious amateurs.

MPPC reported record sales for November 2009, when compared with the prior-year period, reflecting explosive growth in digital camera sales and the increasing popularity of processing photos online rather than at retail kiosks.

November sales reached a record $152,391, which represented an increase of approximately 3% versus prior-year sales of $148,500. This was the third consecutive month of record sales for the online digital photo processor. The Company also generated a positive EBITDA of $28,798, or 18.9% of sales, for the month of November.

To get the news out, MPPC has also increased its own shareholder and market awareness efforts.

Being at the right place at the right time has also been a driver at myPhotopipe.com. MPPC transitioned from film to digital just as digital cameras began to hit the mainstream, then launched a series of sweeping changes earlier this summer that made it dramatically easier to place orders through new web portals and from partner sites. MPPC’s Sports and Celebrity customer base includes some of the best known professional sports franchises in the nation, and The Company recently announced a new effort, www.mymodelcomps.com, that allows MPPC to enter the multi-billion dollar fashion photography industry.

More about MPPC at www.myPhotopipe.com.

JC Penney Jumps; Was a Single Tweet Responsible?

JC Penney (JCP) shares jumped around 2 p.m. today on no� apparent news.

Unless you count a positive tweet from a fashion maven as “news”.

Nina Garcia, a judge on the television show Project Runway and the fashion director at Marie Claire, made a positive comment about JC Penney’s new fashion line this afternoon, and the stock rose at approximately the same time (or a minute or 2 beforehand). Garcia was apparently hired as a merchandising consultant for the company last week.

Below is the tweet in question:

I’m @jcpenney‘s HQ. Thank you Ron Johson for the walk through of JCP’s prototype. Get ready to shop! Its going to be a game changer!

— Nina Garcia (@ninagarcia) July 25, 2012

Shares were recently up 4.5%. The short-sellers don’t know what just hit them.

A Contrarian Take on Future for Netflix and Google TV

I am a big fan of Mark Cuban. He is a media visionary and unbelievably accomplished entrepreneur, and I almost always find myself agreeing with what he writes, which is why I was so surprised by his recent Google (GOOG) TV / Netflix (NFLX) article.

Cuban wrote:

If Google sticks to their guns of not paying up front for content like Netflix does, they will have handed Netflix the entire streaming universe on a platter.

I disagree. Paying up front or licensing is not the only way to monetize content. Google/You tube offers content owners the opportunity to experiment with release windows, and thus offers the potential to optimize revenue. The content creators can extract more value out of higher quality content and reduce costs on lower quality content.

To argue that they are handing netflix streaming is to assume that there is not a zero sum game being played here. The value of retransmission rights through old mediums falls once the content owners give nflx a release window too close to the current traditional mediums, which I would argue some have already done.

This erodes the value of live/ early release window content which of course kills advertising dollars. It probably will also impact box office revenue down the road as nflx has in effect opened the door to monetize all kinds of second rate content as well as delayed(last seasons Dexter for example)) top tier stuff. Jumping too quick on the nflx bandwagon to cash in fast is a very dangerous move for the industry.

He continued:

So riddle me this batman. Netflix is on Google TV, correct ? Given that Netflix pays and Google TV doesn’t, why wouldn’t/shouldn’t the broadcast networks offer all of their shows to Netflix as a way to reach Google TV users, knowing that they will get paid for their content. Paid HUNDREDS OF MILLIONS OR MORE for their content.

Google TV is to my understanding a TV OS. It does not insert ads into the network site. It doesn’t customize the viewing unless you have signed on as a partner like a HBO or TNT. It’s just providing you with a more integrated way to search the network content as you would be able to do on your pc, iPad (AAPL), Macbook etc.

So, Marc is making a very different argument here. He is basically arguing that search through TV OS is tantamount to retransmission rights. Interesting argument, but this goes beyond Netflix/Google TV. Google TV is providing you an interface. It still requires that you have cable/satellite TV connection as well as an internet connection.

If that is the case isn’t it up to the isp provider to pay retransmission rights to the network for web content? My understanding is this spat is over the fact the Google is not doing enough to block the pirated content, meaning you can use your Google TV to watch live TV you just can’t watch whatever NBC or ABC (DIS) has put on its web site that is free and full length. I think Marc has misinterpreted this spat.

He opined:

All you internet pundits want the broadcast networks to give the content away for free. THAT IS STUPID. Get Netflix to pay you on a per subscriber basis on par with what your other TV providers pay you. Netflix becomes a competitive TV provider. BRILLIANT. You get paid. You reach Google TV users and non Google TV users.

Again we run into the same issues here. If it’s free on-line already why would you pull it and then give it exclusively to NFLX? This kind of defeats what the networks are trying to do with Hulu. You are almost arguing for turning nflx into a sole TV portal. But like I pointed out earlier what does that do to cable/satellite/affiliates companies paying for retransmission rights who will see their cord cut or ad dollar fall as even basic TV becomes available through an online distributor.

Furthermore, if the networks are all willing to agree on something like this(they never will), why not give it to Google or Amazon (AMZN) (they will pay if it not fragmented) who have the scale and infrastructure or a collectively owned(assuming they all got on board) entity like a Hulu which they could control.

Mark wrote:

Of course once they get the broadcast nets, how long until they add the cable nets like ESPN, Disney (DIS) ... etc. ?

I am guessing this statement is hinting something along the lines of what HDNET is thinking of doing with NFLX. Problem is if I am HBO I do not go down this route. My content is viewed by most as the most high quality out there. It is worthy of a significant premium. If I extract a significant amount of money upfront from NFLX to license it, it comes at the cost of potentially losing control down the road and eroding the value I extract from my subs. Maybe this ends up being a losing proposition. So, why let you in the door in when I can find ways to monetize that are more optimal and more profitable if I remain long term focused?

Further:

Their competitors have to figure not only how to overcome the technical hurdles of reduced available bandwidth, but also a business model since no one will want to give content away for free when Netflix can pay them. Netflix is very smart.

Now, I agree with the bandwidth argument being made from a short-term perspective, but I don’t get the business model argument. Cuban is arguing that Netflix eventually becomes just like an online TV channel. If that is the case, its competitors are not potential subscription streamers, but rather broadband providers, cable companies, and satellite companies.

The nature of the space ensures it remains fragmented enough that this never happens. Companies like Comcast (CMCSA) and Verizon (VZ) our counting on bundling to increase profitability. A $9 a month Netflix is a threat to all of them, and they have invested heavily in infrastructure.

For NFLX to make any money the cost of the online subscription, that is assuming it provides on par content to offline, will rise while that of the offline falls. Where they converge is your equilibrium. He is also ignoring the overlap between distributors and content owners in cable. Netflix boosting short-term profits at the cost of eroding the value of their own subscription services doesn’t seem to factor into his analysis.

Netflix should end up as the only “TV” provider that truly works on the internet, Which means that content providers like the broadcast and cable networks can be paid by Netflix on a per sub basis for their subs who want to subscribe via the net, and from traditional TV providers for those who want buffer free, (relatively) full quality TV the old fashioned way.

Couldn’t agree more. But that means the Netflix subscription needs to go up rather significantly to offset the cannibalization this will bring to broadcast and cables current revenue streams. At which point the value proposition of the Netflix subscription which currently is benefiting from FAT cable fees starts to decline.

Netflix becomes no more than an internet access point to the same TV/cable content. In which case, why not just watch TV? I mean you said it yourself internet bills are going to go way way up as isp’s start investing in infrastructure to duplicate what can already be piped in via cable or satellite.

If you ask me, Netflix has come in at low price point with respect to streaming. It is a smart move for them to the extent that they were able to get a few big content providers in longer term deals. With that accomplished they can let the disruptive engine go to work.

But it seems we are already seeing some players wise up to this. I see the content providers eventually waking up and realizing that nflx window should be significantly postponed if they don’t want a mess on their hands. This means down the road, if Netflix is going to become what you think they should be, they will need to significantly raise the cost of their streaming service ... that won’t be good news.

Disclosure: No positions