Economic Confidence Barely Improves in 2013: Gallup

Americans’ confidence in the nation’s economy stood at -21 at the beginning of 2013 and has managed to show a modest improvement to -17, according to the latest survey by Gallup. The confidence survey reached its highest level in June when it came in a -3 before dropping to a -39 reading in October during the federal government shutdown.

With the unemployment rate at a five-year low, the market for equities at an all-time high and an improving housing market, the signals have all been positive over the past two months. Add in the beginning of the Federal Reserve’s tapering of its asset purchases and a higher-than-expected rise in gross domestic product (GDP), and it is not difficult to see how the economic news has translated into more confidence in the U.S. economy.

The question, of course, is will it last. Gallup’s survey respondents are skeptical:

Americans are more pessimistic than optimistic about the economy’s outlook, with consumers much more likely to say it is getting worse than getting better (56% vs. 38%, respectively). The resulting net economic outlook score of -18 is significantly improved from the -46 recorded during the shutdown, but substantially below the +4 measured in late May and early June.

On average, though, Americans were more confident in the U.S. economy than they have been in the past five years. The average reading for 2013 was -16, up from -21 in 2012. Not an overwhelming vote of confidence.

While Gallup suggests that further improvement in the unemployment rate and continued GDP growth may be needed to push the index into positive territory in 2014, a more likely requisite could be a rise in wages. GDP and rising stock prices and home values make a lot of headlines, but until consumers see a bump in their paychecks they are unlikely to believe they are getting a lot of benefit from the slowing improving economy. Whether or not 2014 delivers more income to Americans may be the key to economic confidence in the year ahead.

Source: Gallup

Stupid things finance people say

My job requires reading a lot of financial news. It's one of my favorite parts. But it gives me a front-row seat to the downside of financial journalism: gibberish, nonsense, garbage, and drivel. And let me tell you, there's a lot of it.

Here are a few stupid things I hear a lot.

"They don't have any debt except for a mortgage and student loans."

OK. And I'm vegan except for bacon-wrapped steak.

"Earnings were positive before one-time charges."

This is Wall Street's equivalent of, "Other than that Mrs. Lincoln, how was the play?"

"Earnings missed estimates."

No. Earnings don't miss estimates; estimates miss earnings. No one ever says "the weather missed estimates." They blame the weatherman for getting it wrong. Finance is the only industry where people blame their poor forecasting skills on reality.

"Earnings met expectations, but analysts were looking for a beat."

If you're expecting earnings to beat expectations, you don't know what the word "expectations" means.

"It's a Ponzi scheme."

The number of things called Ponzi schemes that are actually Ponzi schemes rounds to zero. It's become a synonym for "thing I disagree with."

"The [thing not going perfectly] crisis."

Boy who cried wolf, meet analyst who called crisis.

"He predicted the market crash in 2008."

He also predicted a crash in 2006, 2004, 2003, 2001, 1998, 1997, 1995, 1992, 1989, 1984, 1971...

"More buyers than sellers."

This is the equivalent of saying someone has more mothers than fathers. There's one buyer and one seller for every trade. Every single one.

"Stocks suffer their biggest drop since September."

You know September was only six weeks ago, right?

"We're cautiously optimistic."

You're also an oxymoron.

[Guy on TV]: "It's time to [buy/sell] stocks."

Who is this advice for? A 20-year-old with 60 years of investing in front of him, or a 82-year-old widow who needs money for a nursing home? Doesn't th! at make a difference?

"We're neutral on this stock."

Stop it. You don't deserve a paycheck for that.

"There's minimal downside on this stock."

Some lessons have to be learned the hard way.

"We're trying to maximize returns and minimize risks."

Unlike everyone else, who are just dying to set their money ablaze.

"Shares fell after the company lowered guidance."

Guys, they just proved their guidance can be wrong. Why are you taking this new one seriously?

"Our bullish case is conservative."

Then it's not a bullish case. It's a conservative case. Those words mean opposite things.

"We look where others don't."

This is said by so many investors that it has to be untrue most of the time.

"Is [X] the next black swan?"

Nassim Taleb's blood pressure rises every time someone says this. You can't predict black swans. That's what makes them dangerous.

"We're waiting for more certainty."

Good call. Like in 1929, 1999 and 2007, when everyone knew exactly what the future looked like. Can't wait!

"The Dow is down 50 points as investors react to news of [X]."

Stop it, you're just making stuff up. "Stocks are down and no one knows why" is the only honest headline in this category.

"Investment guru [insert name] says stocks are [insert forecast]."

Go to Morningstar.com. Look up that guru's track record against their benchmark. More often than not, their career performance lags an index fund. Stop calling them gurus.

"We're constructive on the market."

I have no idea what that means. I don't think you do, either.

"[Noun] [verb] bubble."

(That's a sarcastic observation from investor Eddy Elfenbein.)

"Investors are fleeing the market."

Every stock is owned by someone all the time.

"We expect more volatility."

There has never been a time when this was not the case. Let me guess, you also expect more winters?

"This is a strong buy."

What do I do with ! this? Cli! ck the mouse harder when placing the order in my brokerage account?

"He was tired of throwing his money away renting, so he bought a house."

He knows a mortgage is renting money from a bank, right?

"This is a cyclical bull market in a secular bear."

Vapid nonsense.

"Will Obamacare ruin the economy?"

No. And get a grip.

The Motley Fool is a USA TODAY content partner offering financial news, analysis and commentary designed to help people take control of their financial lives. Its content is produced independently of USA TODAY.

<SCRIPT language='JavaScript1.1'SRC="http://ad.doubleclick.net/adj/N4538.USAToday/B2304017.8;abr=!ie;sz=550x300;ord=[timestamp]?"></SCRIPT><NOSCRIPT><AHREF="http://ad.doubleclick.net/jump/N4538.USAToday/B2304017.8;abr=!ie4;abr=!ie5;sz=550x300;ord=[timestamp]?"><IMGSRC="http://ad.doubleclick.net/ad/N4538.USAToday/B2304017.8;abr=!ie4;abr=!ie5;sz=550x300;ord=[timestamp]?" BORDER=0 WIDTH=550 HEIGHT=300ALT="Advertisement"></A></NOSCRIPT>

Corporate profit powers ahead again in Q3

Investors wondering if there's anything other than hot air behind the rally in stocks got their answer: Strong corporate profit.

Now that exactly half the companies in the Standard & Poor's 500 index have reported, investors see that corporate profit rose another 4.5% during the quarter, says S&P Capital IQ.

While not the strongest earnings growth in recent years, a 4.5% increase in profit is definitely a continuation of a robust string of increases in companies' bottom lines. Profit grew by a slightly better 4.9% in the second quarter of 2013, but by just 2.4% in the third quarter of 2012. The third-quarter gains this year pushes the corporate profit to another record.

Best Growth Companies To Invest In 2014

Earnings season may be at the halfway mark, but the most valuable company, Apple, is expected to report after the close on Monday. What Apple says may reveal more clues about the technology sector. But in the meantime, investors parsing through corporate profit reports find:

• Broad industry participation. All but one of the 10 sectors in the S&P 500, energy, are posting earnings growth during the quarter. Energy companies' profits are expected to fall 7.5% during the quarter. But weakness on the oil patch is more than outstripped by the 27.5% earnings growth in telecom and 12.3% growth in consumer discretionary.

• No big surprises from earnings surprises. So far, 68% of the companies to have reported beat earnings expectations, while 19% missed and 13% matched. These numbers are roughly in line with long-term averages.

• Healthy revenue growth. Investors have long worried easy profit gains from cost cutting could be running out of steam. At some point, companies need to put up revenue growth by selling goods and services. That seems to be happening in the third quarter, with revenue up 3.9%, a big improvement from the 0.7% decline in the second quarter.

But while the quarter was strong in most respects, the future, at least in the eyes of CEOs now, isn't quite as bright. So far, 57 companies have issues guidance for the fourth quarter, and of those, 45 are negative. The ratio of negative guidance to positive is 5.6, which is higher than usual.

Starting a business requires smart risk-taking

Q: "Did you see that that fancy new organic grocer is closed? How long were they open, 4 months? I can't believe it – they must have sunk a million bucks into that place." — Jay

A: More like $2 million.

For the past few months, in the downtown neighborhood where my office is, folks were all atwitter about the new startup market that was moving into the old warehouse on the corner. Apparently, they were going to challenge the Whole Foods market that sits a few blocks away.

The new grocer seemed to spare no expense. Even before opening the doors, they rented several offices in my building for back-end support, the warehouse was gutted and completely remodeled, the logo and branding were top-notch.

SMALL BUSINESS: Complete coverage of entrepreneurs and small business issues

After the hoopla around the grand opening died down, my youngest daughter, who was working as my assistant this summer, and I went over the place for lunch a few times. It was unbelievable:

• The prices were unbelievable — unbelievably expensive. If you think it's pricey to shop at Whole Foods, your toes would curl at the prices this place tried to charge.

• I couldn't believe how little food and produce the place actually stocked. Have you ever walked into a convenience store, only to be surprised at how few shelves it has, how empty and cavernous the place feels, and how little inventory is there? Well, that was this place, times ten. And overpriced to boot.

• They had unbelievably bad service. Not enough help and employees not trained well.

If you think about it, this was really a bad idea for a business. In theory, going up against a market leader like Whole Foods might be a good idea, but only if you can do it right and offer something the leader does not offer – better prices, better selection, better location.

Our new market was worse at all three of these things: More expensive, worse selection, mediocre location. And clearly they tried to take on the lead! er without the capital needed to do so. One time I went in there and the deli counter was closed. I asked an employee, "What's up with that?" and he said they couldn't afford to buy meat that week.

It's bad enough to start a business with a bad plan and lacking even the money necessary to implement that bad plan, but in this case, what really galls me is that the business geniuses behind this startup dropped $2 million (per the local papers) on this ill-conceived behemoth.

Look, we all know that entrepreneurship requires risk-taking. And that's a good thing, because risk is where the juice is. Risk makes the small business game more fun. Big risks can lead to big rewards.

But not all risks are created equal.

One thing I have learned about great entrepreneurs over the 15 years I have been writing this column is that they are smart risk takers. Sure, they know there are times for big, bold risks, heck they would not be where they are if they didn't take a huge risk or two at some point or another.

But usually, the big bet is preceded by a series of smaller, far more prudent risks. The small risks set up the big risks. Small risks are used most often to test the waters, to see if the idea works in the marketplace as well as it does in the entrepreneur's head. A smaller risk can be used to refine an idea, to get it ready for it's close up, to hone it until it is time to roll it out big. And by then, it won't seem like such a big risk anyway after all, because the entrepreneur has tested the idea, knows what to expect, and is prepared for any eventuality.

But dropping a ton of dough (or time or reputation) on a new idea that hasn't been fully vetted? Count me out, and I hope we count you out too.

Today's tip: The Hartford recently launched its Small Business Success Study, and it offered up some pretty interesting results:

• Not surprisingly, 63% of small business owners would not take a job working for someone else – even if they knew they could be just as! successf! ul.

• And when the owners says that their business is going well, that number jumps to 82%

• Of those small business owners who are well-informed about the Affordable Care Act, 38% say they plan to stop future hiring.

Steve Strauss is a lawyer specializing in small business and entrepreneurship. His column appears Mondays. E-mail Steve at: sstrauss@mrallbiz.com. An archive of his columns is here. His website isTheSelfEmployed.

Goldman Sachs Upgrades Royal Dutch Shell to “Buy” (RDS-A)

Goldman Sachs reported on Monday that it has raised its rating on Royal Dutch Shell plc (RDS-A).

The firm has upgraded Shell from “Sell” to “Buy,” and has raised the company’s price target from $69 to $71. This new price target suggests a 7% upside from the stock’s current price of $65.88.

An analyst from the firm noted: “We believe that the underlying business is sound and highly cash generative, with higher exposure than peers to long-lived assets and slightly better production/cash flow growth in the coming years. TOTAL's 15% outperformance since indicating a capex reduction and upside to disposals shows in our view how eager the market is for improvements in capital efficiency, and we believe that Shell's new management is most likely to steer the market in that direction from very low expectations.”

Top 5 Blue Chip Stocks To Watch For 2014

Royal Dutch Shell shares were mostly flat during pre-market trading Monday. The stock is down 4% YTD.

Best Oil Companies To Watch For 2014

NEW ORLEANS (AP) -- Transocean Deepwater Drilling Corp. has lost a round in its fight to avoid handing over documents to a government board investigating the 2010 Deepwater Horizon oil rig explosion.

Transocean is appealing a federal court order enforcing a subpoena of the documents by the U.S. Chemical Safety and Hazard Investigation Board.

The 5th Circuit Court of Appeals on Tuesday refused to stay the document handover while the appeal is pending.

"We are extremely pleased with the court's decision," said Dr. Daniel Horowitz, CSB's managing director. "After years of litigation, it paves the way for the CSB to finally conclude its Deepwater investigation, which we believe holds lessons for all the energy industry."

The documents were collected by a Transocean internal investigation team.

The 5th Circuit said Transocean failed to justify action that would delay the safety board's report on the explosion, which killed 11 and spawned the nation's worst offshore oil spill.

Best Oil Companies To Watch For 2014: Caiterra International Energy Corp (CTI.V)

CaiTerra International Energy Corporation (Caiterra), formerly Cyterra Capital Corp., is a Canada-based company is engaged in the exploration and development of oil and gas properties. The Company�� project includes Faust, Amadou and Lac La Biche. On March 9, 2012, the Company completed its qualifying transaction with West Pacific Petroleum Inc. (WPP), pursuant to which the Company acquired all of WPP�� working interests in certain petroleum and natural gas leases and an oil sand lease in the Lac La Biche and Amadou Projects located in Alberta, Canada and certain other assets (the QT Oil and Gas Properties) from West Pacific Petroleum Inc. (WPP). On December 17, 2012 the Company acquired the Faust Property located just north of the Swan Hills oil field and south of the Town of Slave Lake.

Best Oil Companies To Watch For 2014: Sunoco Inc.(SUN)

Sunoco, Inc., through its subsidiaries, refines and markets petroleum products in the United States. Its Logistics segment operates refined product and crude oil pipelines and terminals; and acquires and markets crude oil and refined products. As of December 31, 2011, this segment owned and operated approximately 5,400 miles of crude oil pipelines and approximately 2,500 miles of refined product pipelines. It also operates 42 active terminals that receive refined products from pipelines and distribute them to third parties. The company?s Retail Marketing segment engages in the retail sale of gasoline and middle distillates; and operation of convenience stores. This segment operates outlets primarily in Connecticut, Florida, Maryland, Massachusetts, Michigan, New Jersey, New York, Ohio, Pennsylvania, and Virginia. Its Refining and Supply segment offers petroleum products, including gasoline and residual fuel oil, as well as middle distillates, such as jet fuel, heating oil , and diesel fuel; and commodity petrochemicals comprising propylene-propane, benzene, and cumene. This segment offers its products to wholesale and industrial customers. The company was founded in 1886 and is based in Philadelphia, Pennsylvania.

Top 5 Dividend Stocks To Own For 2014: Precision Drilling Corp (PDS)

Precision Drilling Corporation (Precision) is a provider of contract drilling and completion and production services primarily to oil and natural gas exploration and production companies in Canada and the United States. The Company operates in two segments: Contract Drilling Services, and Completion and Production Services. In Canada, the Contract Drilling Services segment includes land drilling services, directional drilling services, procurement and distribution of oilfield supplies and the manufacture and refurbishment of drilling and service rig equipment, and the Completion and Production Services segment includes service rigs for well completion and workover services, snubbing services, camp and catering services, wastewater treatment services and the rental of oilfield surface equipment, tubulars, well control equipment and wellsite accommodations.

Best Oil Companies To Watch For 2014: Shell Refining Company (FED OF MALAYA)

Shell Refining Company (Federation of Malaya) Berhad is principally engaged in refining and manufacturing of petroleum products. The Company operates primarily in Malaysia. Its operations also include the gas to liquids (GTL) plant of its kind in Bintulu, Sarawak, and a refinery in Port Dickson, Negeri Sembilan. Its upstream operations focus on the development and extraction of crude oil and natural gas offshore Sarawak and Sabah. In downstream its main activity is in refining, supply, trading and shipping of crude oil and petroleum products through the sales and marketing of transportation fuels, lubricants, specialty products and technical services. The Company is also a partner in two joint ventures that convert natural gas to liquefied natural gas. Royal Dutch Shell plc is its holding company.

Best Oil Companies To Watch For 2014: CVR Refining LP (CVRR)

CVR Refining, LP, incorporated on September 17, 2012, is an energy limited partnership with refining and related logistics assets that operates in the mid-continent region. As of January 8, 2013, the Company owned two of only seven refineries in the underserved Group 3 of the PADD II region of the United States. It owns and operates a 115,000 barrels per day (bpd) coking medium-sour crude oil refinery in Coffeyville, Kansas and a 70,000 bpd medium complexity crude oil refinery in Wynnewood, Oklahoma capable of processing 20,000 bpd of light sour crude oils (within its 70,000 bpd capacity). In addition, it also controls and operates supporting logistics assets, including approximately 350 miles of owned pipelines, over 125 owned crude oil transports, a network of strategically located crude oil gathering tank farms, and over six million barrels of owned and leased crude oil storage capacity. On December 15, 2011, the Company�� subsidiary Coffeyville Resources, LLC (Coffeyville Resources) acquired Wynnewood Energy Company, LLC, formerly Gary-Williams Energy Corporation.

The Company�� Coffeyville and Wynnewood refineries are located approximately 100 miles and 130 miles from the crude oil hub at Cushing, Oklahoma. As of January 8, 2013, the Company gathered approximately 50,000 bpd of price-advantaged crudes from its gathering area, which includes Kansas, Nebraska, Oklahoma, Missouri and Texas. The Company also has 35,000 bpd of contracted capacity on the Keystone and Spearhead pipelines that allows it to supply price-advantaged Canadian and Bakken crudes to its refineries. As of January 8, 2013, the Company had 145,000 bpd pipeline system that transports crude oil from its Broome Station tank farm to its Coffeyville refinery, as well as a total of 6 million barrels of owned and leased crude oil storage capacity, including approximately 6% of the total crude oil storage capacity at Cushing.

Advisors' Opinion:

• [By Robert Rapier] In last week’s issue I discussed the basics of the refining sector. Today I will provide an overview of four MLPs that hold refining assets.
  
  To review, the refining sector was very profitable in 2012 thanks to unusually high crack spreads, which for many US refiners are approximated by the price differential between Brent and West Texas Intermediate (WTI) crude oils. For a more thorough explanation of this phenomenon, please refer to last week’s issue.
  
  After years of trading at a $1 to $3 per barrel discount to WTI, Brent began fetching a premium a few years ago as a glut of crude developed in the mid-continent area of the US. In 2011 the Brent-WTI price differential increased to more than $25/bbl, and it remained historically high in 2012.
  
  But pipeline capacity started to catch up this year, and the share prices of refiners retreated as the glut began to dissipate and the Brent-WTI differential shrank. In Q3 2012, the Brent-WTI differential averaged $17.43/bbl, but by Q3 of this year, the differential had fallen to $4.43/bbl. This promises bad news for refiners about to report Q3 earnings.
  
  Many analysts downgraded the refining sector in Q3, but as the differential fell below $5/bbl it was hard to imagine that the news could get much worse. With poor Q3 results largely priced in, the differential subsequently rose back above $10/bbl, signaling better refining margins moving into Q4.
  
  Refiners began to post earnings this past week, and as expected they were weak. Valero (NYSE: VLO) reported slightly higher revenues year-over-year, but net earnings fell more than 50 percent from a year ago. Nevertheless, they beat the extremely pessimistic expectations of analysts, and Valero shares rose on the news.
  
  Phillips 66’s (NYSE: PSX) refining unit actually posted a loss, but its chemical business turned in a solid quarter which more than compensated for the disappointing refining results.
  
  The rest of the refine

Best Oil Companies To Watch For 2014: Whiting Petroleum Corporation(WLL)

Whiting Petroleum Corporation engages in the acquisition, development, exploitation, exploration, and production of oil and gas primarily in the Permian Basin, Rocky Mountains, Mid-Continent, Gulf Coast, and Michigan regions of the United States. As of December 31, 2010, its estimated proved reserves were 304.9 million barrels equivalent of oil; and had interests in 9,698 gross productive wells covering approximately 1,115,000 gross developed acres. The company sells its oil and gas to end users, marketers, and other purchasers. Whiting Petroleum Corporation was founded in 1983 and is Denver, Colorado.

Advisors' Opinion:

• [By Travis Hoium]

  Today, Continental Resources� (NYSE: CLR  ) , Whiting Petroleum (NYSE: WLL  ) , Statoil (NYSE: STO  ) , and Kodiak Oil & Gas (NYSE: KOG  ) have access to nearly 2 million combined acres ,equivalent to 1,280 square miles. They're dotting the plains of western North Dakota with drilling rigs and production wells. All of this drilling has led to massive growth in oil production, which brings economic development and jobs to this once forgotten state. For a visual showing how fast oil production grew, click here to see a 25-year EIA time lapse of energy production in the Bakken.�

• [By Aaron Levitt]

  With hydraulic fracturing taking over, energy production in North America is booming to say the least. From the Bakken to the Marcellus, energy stocks like Range Resources (RRC) to Whiting Petroleum (WLL) have realized plenty of profits as they have begun to tap our abundant shale resources.

Best Oil Companies To Watch For 2014: Range Resources Corporation(RRC)

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

Advisors' Opinion:

• [By Aaron Levitt]

  When it comes to the Marcellus shale in Pennsylvania and West Virginia, no one plays it better than natural gas producer Range Resources (RRC).

  That�� surely evident from its latest earnings report. Overall, RRC managed to pump out record production for the third quarter at some pretty high prices. All told, total production increased by 21% vs. a year ago.

Best Oil Companies To Watch For 2014: Tesoro Petroleum Corporation(TSO)

Tesoro Corporation, together with its subsidiaries, engages in refining and marketing petroleum products in the United States. It operates in two segments, Refining and Retail. The Refining segment refines crude oil and other feed stocks into transportation fuels, such as gasoline, gasoline blendstocks, jet fuel, and diesel fuel, as well as other products, including heavy fuel oils, liquefied petroleum gas, petroleum coke, and asphalt. This segment also sells refined products in the wholesale market primarily through independent unbranded distributors; and in the bulk market primarily to independent unbranded distributors, other refining and marketing companies, utilities, railroads, airlines and marine, and industrial end-users. It owns and operates 7 refineries with a combined crude oil capacity of 665 thousand barrels per day. The Retail segment sells gasoline, diesel fuel, and convenience store items through company-operated retail stations, and third-party branded dea lers and distributors in the western United States. As of December 31, 2011, this segment had 1,175 branded retail stations under the Tesoro, Shell, and USA Gasoline brands. The company was formerly known as Tesoro Petroleum Corporation and changed its name to Tesoro Corporation in November 2004. Tesoro Corporation was founded in 1939 and is headquartered in San Antonio, Texas.

Advisors' Opinion:

• [By Claudia Assis]

  Among the few energy firms in the red Tuesday, refiners Tesoro Corp. (TSO) �and Marathon Petroleum Corp. (MPC) �declined 1.6% and 0.6%, respectively.

• [By Taylor Muckerman]

  Is there any help on the horizon?
  Those who call California home are certainly hoping so. Increased infrastructure to get cheaper Bakken formation and other mid-continent oil to the West Coast is likely to begin appearing in 2014. One of the state's biggest refiners, Tesoro (NYSE: TSO  ) , plans on increasing rail capacity to ports on the coast where it can then ship the cheaper, lighter oil to its refineries throughout the state. Couple this with pipeline expansions in Canada, and some, not total, relief could be in sight.�

• [By Ben Levisohn]

  That might explain why refiners are holding up better than expected today. Valero (VLO) has gained 3% to $35, while Tesoro (TSO) has risen 1.6% to $41.19.

Court Upholds CFTC Commodity Pool Rule; Rejects ICI Appeal

The U.S. Court of Appeals for the D.C. Circuit on Tuesday rejected an appeal brought by the Investment Company Institute, upholding new rules issued by the Commodity Futures Trading Commission that will require many investment companies to register as commodity pools.

ICI came out against the ruling, stating that the CFTC’s Rule 4.5 will result in redundant regulation of registered investment companies, such as mutual funds and exchange-traded funds.

Karrie McMillan, ICI’s general counsel, said in a statement after the ruling that the court’s decision “appears to reflect its judgment that the costs and benefits of the CFTC’s expanded regulation of investment companies cannot be fully assessed until the agency completes its rulemaking to ‘harmonize’ its rules with those of the Securities and Exchange Commission.”

The court “made clear,” McMillan continued, “that it expects the costs and benefits of the harmonization rule to be carefully considered.” She said ICI continues to believe the amendments made to CFTC Rule 4.5 “were improperly adopted,” and that ICI “intends to focus on ensuring that the CFTC’s regulatory regime as it evolves does not adversely affect fund investors.”

David Hirschmann, president and CEO of the Chamber of Commerce's Center for Capital Markets Competitiveness, agreed in the same statement issued by ICI that the CFTC’s rule “was improperly adopted and imposes duplicative compliance costs on American companies and investors.”

The ICI’s lawsuit challenged the CFTC’s recent changes to its Rule 4.5, which excludes certain entities from regulation as commodity pool operators. The ICI argued that the changes CFTC made to Rule 4.5 require “many advisors to registered investment companies—which are already regulated by the SEC—to be dually regulated by the CFTC” as commodity pool operators. The amendments to Rule 4.5 "result in unnecessary and burdensome regulations on advisors and their funds and, ultimately, their shareholders."

The U.S. District Court held that the CFTC met its regulatory obligations when promulgating the rule by analyzing the costs and benefits and providing sufficient notice and opportunity to comment. The Court also said that the CFTC did address the costs and benefits of the proposed rule changes. The Court stated that it would “be quite literally impossible to calculate the costs of an unknown regulation” and that the “law does not require agencies to measure the immeasurable.”

Cipperman Compliance Services warned investment companies the same day that the “new rules subjecting many registered funds to CPO registration are effective,” and that firms should not “ignore compliance on the hope that the ICI will try to appeal to the Supreme Court, the Supreme Court will even hear the case, and then the Court will reverse two concurring lower court opinions.”

---

Check out Supreme Court Upholds Mandatory Arbitration; NASAA Calls for Action on AdvisorOne.

The 10 Best Financial Tweets For Thursday, July 25

There are millions of tweets written every day. Benzinga sifts through the maelstrom of information to find the ten best tweets of the day that are either informative, insightful, or just down right comical.

1. Carl Icahn

Carl Icahn (@Carl_C_Icahn) took to Twitter to tweet his displeasure with the Dell (NASDAQ: for control of the company.



All would be swell at Dell if Michael and the board bid farewell.

— Carl Icahn (@Carl_C_Icahn) July 24, 2013

2. Phil LeBeau

CNBC's Phil LeBeau (@Lebeaucarners) took to Twitter following General Motors' (NYSE: GM) earnings release Thursday morning. He noted that for both GM and Ford (NYSE: F), European losses narrowed significantly last quarter, a key sign that the weakest of the big three's regional markets showed signs of improvement last quarter.

BREAKING: Key # in @GM Q2 Earnings: Losses in Europe ar $100 Million, big improvement vs. last year losses of $400 million.

— Phil LeBeau (@Lebeaucarnews) July 25, 2013

Related: Facebook Soars on Q2 Financial Results.

3. Downtown Josh Brown

Downtown Josh Brown (@ReformedBroker) took to Twitter to share an article from Fortune magazine about the lack of information that investors have access to relating to the bond market. The article is a must read for fixed income investors.

You know a lot less about the bond market than you think http://t.co/P4xl6Q6vH1

— Downtown Josh Brown (@ReformedBroker) July 25, 2013

4. Barron's Online

Barron's Online (@barronsonline) tweeted an article from the Wall Street Journal. The article highlights that investors who are selling bonds and bond funds are reticent to invest into stocks and are piling more money into low-yield money market funds.

"The day is approaching when no market will be safe for investors"-- from Comments on story http://t.co/axflkOqyLn via @WSJ

— Barron's Online (@barronsonline) July 25, 2013

5. Holger Zschaep! itz

Senior editor of the financial and economic desk at Die Welt Holger Zschaepitz (@Schuldensuehner) tweeted a Bloomberg article that highlighted an interesting investment that was recently made by Blackstone (NYSE: BX).

"We believe strongly in a recovery of the Spanish economy." Blackstone to Buy Madrid Apartments in First for #Spain. http://t.co/hVQ5diDGrP

— Holger Zschaepitz (@Schuldensuehner) July 25, 2013

6. Kathimerini English

The English-language site of Greek news outlet Khathimerini (@ekathimerini) tweeted one of its articles that highlights an interesting and somewhat depressing fact of the latest bailout talks in Greece. They note that nearly half of Greece's next bailout payment will go directly back to its lenders that have forced the bailout on the country.

More than half of Ä4bln Greece is to receive next week will go straight back to lenders http://t.co/oxcTcBb6on

— Kathimerini English (@ekathimerini) July 25, 2013

7. Lawrence McDonald

Lawrence McDonald (@Convertbond) of LGM Group tweeted an interesting fact about corporate profits. Specifically, he highlights an interesting effect of lower interest rates and Federal Reserve easing on profits of S&P 500 companies.

Corporate savings on interest expense after #QE 's historic rate lows has accounted for about 47% of S&P 500 earnings growth since 2009

— Lawrence McDonald (@Convertbond) July 25, 2013

8. Charles Rotblut, CFA

Charles Rotblut (@charlesrotblut), Vice President at the American Association of Individual Investors, tweeted the latest AAII Sentiment Survey. He notes that the survey shows that investors are bullish but not unusually so.

AAII Sentiment Survey: Bullish sentiment above 40% for 4th week, but not unusually high http://t.co/XMpXl1YmBW

— Charles Rotblut, CFA (@charlesrotblut) July 25, 2013

9. Platts Oil

Platts Oil (@PlattsOil) tweeted a recent data point released by! the IEA.! The IEA expects the world energy market to grow strongly over the next three decades.

World energy demand to grow 56% by 2040, according to #EIA's 2013 International Energy Outlook -- #oil

— Platts Oil (@PlattsOil) July 25, 2013

10. IMF

The International Monetary Fund (@IMFNews) tweeted a press release that the economic think tank issued this morning. They made several recommendations for the eurozone policy makers in order for the region to revive growth and boost jobs.

#IMF: More policy efforts needed to revive growth and create #jobs in #eurozone http://t.co/G0wVIqUQCk

— IMF (@IMFNews) July 25, 2013

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

Is Brady's Cash Machine Shutting Down?

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

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

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

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

Over the past 12 months, Brady generated $98.0 million cash while it booked net income of $34.4 million. That means it turned 7.2% of its revenue into FCF. That sounds OK.

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

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

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

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

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

With 43.7% of operating cash flow coming from questionable sources, Brady investors should take a closer look at the underlying numbers. Within the questionable cash flow figure plotted in the TTM period above, other operating activities (which can include deferred income taxes, pension charges, and other one-off items) provided the biggest boost, at 20.4% of cash flow from operations. Overall, the biggest drag on FCF came from capital expenditures, which consumed 26.7% of cash from operations.

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

Can your retirement portfolio provide you with enough income to last? You'll need more than Brady. Learn about crafting a smarter retirement plan in "The Shocking Can't-Miss Truth About Your Retirement." Click here for instant access to this free report.

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

Add Brady to My Watchlist.

We'll Have Flying Cars in 3 Years, but Not Like 'The Jetsons'

TerrafugiaTerrafugia's first flying car model, the Transition. The term "flying car" brings to mind images from "The Jetsons" and "Blade Runner," where the skies are crowded with vehicles and the average driver spends more time aloft than on the ground. That reality remains in the distant future, but it's hardly unimaginable. Real flying cars should be on the market in the next few years, but the first wave will be designed for pilots who sometimes want to drive -- not ordinary drivers who want to fly above traffic. The Driving Plane

Top Performing Companies To Own In Right Now

Leading the way is Terrafugia, founded in 2006 by five MIT-trained engineers, all of them pilots. In an interview, co-founder and CEO Carl Dietrich said they started off by identifying the biggest problems with flying as a hobby. They came up with four, he said:

Small aircraft can't fly in bad weather. For multi-day trips, that means taking the risk that you may not be able to get home if a storm crops up. It takes a lot of money to own a plane. Beyond the purchase price, there's jet fuel and the cost of safely storing the plane at an airport. It can take awhile to travel from one's home to the airport. That's time when you can't be in the air. Options for ground transportation tend to be limited or non-existent at the small airports used by private aircraft, so once you land somewhere, it's hard to keep going on the ground.

These are all serious limits to the practicality and enjoyment of flying as a hobby. And they're solved by Terrafugia's first model, the Transition. The Transition is a small aircraft whose wings can fold up so it can drive on the road. Its price is comparable to that of other small planes, but Dietrich says the cost of ownership will be significantly reduced. It uses automotive gasoline, so more expensive aviation fuel isn't necessary. It's efficient: Flying at 100 mph, it gets an outstanding 20 miles per gallon. Plenty of cars get the same rate at significantly lower speeds. Terrafugia says that on the ground, the Transition gets 35 mpg, also impressive. With the wings folded, it can fit in the average garage, so there's no more need to pay to keep it at an airport. The ground transportation problem is solved, since you just drive it home after landing. If the weather's bad, you don't have to fly. Just drive instead. Terrafugia isn't the only company in this market, and there's more than one way to get a car in the air. The Flying Motorcycle

PAL-VThe PAL-V ONE in driving mode.

Dutch company PAL-V was founded in 2001. Unlike the Transition, the three-wheeled PAL-V ONE is more motorcycle than car, and more helicopter than plane. But it still drives and flies. It's actually a gyrocopter (also called an autogyro), which uses an engine-powered propeller to create thrust and an unpowered rotor to create lift. Slower than a helicopter, it's also simpler to fly. PAL-V CEO Robert Dingemanse said it's easy to learn to use, and there's no real risk of stalling. Unlike the Transition, the PAL-V ONE can avoid airports altogether, thanks to short takeoff and landing capability. It flies at a max speed of 112 mph and stays below 4,000 feet, out of commercial airspace. Common Ground Despite their different designs, the Transition and the PAL-V ONE have a lot in common in how they will be used. The PAL-V One started "more as a driving airplane than flying car," Dingemanse said, and the key customer is the person who already knows how to fly. The vehicle will remain a "very small part of the car market for a long time," Dingemanse said. Terrafugia's Dietrich agreed that the Transition will be used more as a driving plane than a flying car, but said he sees a market beyond existing pilots. It is "mostly for pilots today," he said, but it's an obvious way to bring more people into aviation. The company has taken over 100 deposits for the Transition, each for $10,000. Of those customers, a quarter are not pilots. Serious Hurdles

TerrafugiaWith its wings folded, the Transition can fit in the average garage.

Both Terrafugia and PAL-V ONE have solved the basic technological challenges of building a vehicle that drives and flies capably, as their testing proves. But there's a large gap between developing that technology and bringing it to market, especially in the U.S. and Europe, where the auto and aviation industries are carefully and heavily regulated.

Although both vehicles can fly, each has several more years of testing and development before any customers can take them for a spin.

The current transition is a second generation prototype, and is being used for flight testing. The third generation will be used for crash testing, and misuse testing (like driving on cobblestones). The Terrafugia will make tweaks based on the results, build a conforming prototype, and repeat the initial flight testing. That should all be done in two and a half to three years, Dietrich said. All told, the process will have taken a decade. PAL-V is on a similar schedule. The company has a proof of concept, and now there's a "lot of engineering work" to do, Dingemanse said. He expects deliveries to begin in late 2015 or early 2016. Both are serious projects that have already well on their way to certification. Terrafugia has received a key weight exemption from the FAA, and the National Highway Traffic Safety Administration allowed it to bypass a few regulations that would delay development but not impact safety. The PAL-V, which is backed partly by the Dutch government, is classified as a motorbike, not a car. That gives the company "much more freedom in design," Dingemanse said, partly because European auto safety standards are especially strict. Filling The Skies

PAL-V The PAL-V ONE in flight.

If these vehicles are really designed to make pilots' lives easier, when will we get to a point where the average driver gets to fly? We're nowhere near life in "The Jetsons" or "Blade Runner," but we're headed in the right direction. Terrafugia and PAL-V ONE are serious companies with products we expect to see make it to market, if in limited numbers. From there, it's a question of improving the technology (largely to make flying easier than it is now), ramping up production, getting people interested, updating regulations, and building infrastructure. That's a lot of work, but it's been done before. The auto and aviation industries were both in their infancy a century ago. Now we have millions of cars on the road and 30,000 daily flights in the U.S. Terrafugia is already working on a second model, the TF-X, which will take off and land vertically, and fly at 200 mph. Dietrich says customers could learn to operate it in just five hours, though regulatory changes will be needed to make it available. Some technologies and capabilities that autonomous flying cars will depend on are included in the Next Generation Air Transportation System, which is being slowly implemented by the FAA, Dingemanse explained.

Oppenheimer’s Path to Prosperity in 2014

Investors are generally positive for stocks in 2014. They’re not excessively worried about the beginning of the end for the Federal Reserve’s quantitative easing program and they seem to expect continued economic recovery for the rest of the world.

However, investors pulled billions of dollars out of several large asset managers in the third quarter, reflecting increasing caution among institutional clients regarding these companies. Customers withdrew more money than they added for a variety of reasons among the firms, which include T. Rowe Price Group, Franklin Resources, Janus Capital Group, and Federated Investors.

But one firm actually had its assets under management (AUM) increase 12.8 percent during this period: Oppenheimer Holdings (NYSE: OPY).

Oppenheimer is growing its AUM at the expense of its competition and the firm is delivering for investors with an increase of 125 percent in its recent earnings. The stock has the potential to double from its current price; management projects that the company will grow earnings by 72 percent in the coming year.

The company’s assets under management increased 12.8 percent to $23.8 billion at September 30, 2013, a record for the company, compared to $21.1 billion at September 30, 2012, which is the basis for advisory fee billings for the fourth quarter of 2013. The increase in AUM was comprised of asset appreciation of $1.6 billion and net new assets of $1.1 billion.

Oppenheimer reported net income of $5.2 million or earnings per share (EPS) of $0.38 for the third quarter of 2013, compared with net income of $2.3 million or EPS of $0.17 for the third quarter of 2012, an increase of 125.5 percent. Revenue for the third quarter was $243.4 million, compared with $231.8 million in the third quarter of 2012, an increase of 5 percent.

The Private Client segment reported revenue of $144.3 million for the third quarter, 7.9 p! ercent higher than the same quarter a year ago. Income before income taxes was $15.1 million, an increase of 27.6 percent compared with the same quarter a year ago, driven by increases in both transactional and fee-based business during the third quarter of 2013 compared with the same period of 2012.

Asset Management reported revenue of $21.5 million for the third quarter, 8.5 percent higher than the same quarter a year ago. Income before income taxes was $6.4 million, an increase of 54.7 percent compared with the same year-ago quarter, as a result of increased fees earned on managed products as well as lower legal costs.

Year to date as of November 29, the S&P Investment Banking & Brokerage Index was up 47.3 percent, versus a 27.1 percent increase for the S&P 1500 Index. In 2012, the sub-industry index was up 32.9 percent compared to a 13.7 percent advance for the broader index. Oppenheimer Holdings is up 49 percent in the past year.

Oppenheimer is projected to post EPS of $1.36 in 2013. The company is projected to grow EPS by 72 percent to $2.34 in 2014 and to increase EPS by another 25 percent to $2.94 in 2015.

Thomson Reuters consensus has a strong buy rating of 1.0 on the stock. Based on a modest price-to-earnings (P/E) ratio of 20, Oppenheimer Holdings has a 12-month price target of $46, for an increase of nearly 100 percent.

Greg Pugh, an income-investing expert, publishes a newsletter called Investing for Monthly Income.

ATK Wins $3.2 Million Rocket Contract

Munitions manufacturer ATK (NYSE: ATK  ) has been awarded a $3.2 million contract to provide a low-cost, light-weight, precision-guided missile that incorporates lock-on capabilities before and after launch. 

The munitions maker is confident its guided advanced tactical rocket and precision-guided rocket launcher will meet the contract's requirements. The contract comes through the Defense Acquisition Challenge (DAC) program, which aims to incorporate innovative and cost-saving technology or products into existing Department of Defense acquisition programs. The missile will be evaluated by U.S. Special Operations Command.

ATK's VP and general manager for armament systems, Dan Olson, was quoted as saying, "Our on-going investment and expertise in precision strike weapons, including the GATR system, provide a mature capability that fulfils the requirements of our military customers using innovative approaches that minimize integration costs."

Launched from ATK's precision-guided rocket launcher, ATK says the guided advanced tactical rocket missile incorporates the same technology used in other combat-proven munition weapons, and offers the option of quick point detonation to "defeat soft targets" or delayed detonation to penetrate hardened targets.

The company says the rocket launcher can be seamlessly integrated onto air platforms using currently existing digital and analog fire control systems and can provide digital stores management for all loaded weapons.

ATK is an aerospace, defense, and commercial products company with operations in 21 states, Puerto Rico, and internationally.

link

Costco Hammers Home Its Strength

March was a solid month for Costco (NASDAQ: COST  ) , and the company posted a 4% increase in comparable sales. The stock was stagnant, though, as analysts had been expecting a 5% increase. But investors shouldn't be alarmed, as the shortfall was due mainly to exchange rates and lower fuel sales. In its press release, the company said that stripping out exchange rates and fuel changes, comparable sales rose 6%.

Costco has already posted a solid beginning to 2013, with its second-quarter comparable sales -- through the middle of February -- up 5%. The company has continued to find success through its disruptive membership model, and investors have rewarded it with a 20% increase in the stock price over the last 12 months. But even at its current price, Costco still looks like a good buy.

Solid management leads the way
Costco's leadership has been focused on meeting its customers' needs since the company's founding. But as evidence of its strategic abilities, the company hasn't been happy just to let its past customers make up the whole of its future customer base. Instead, the company has branched out into business products and homegoods to bring in a new audience.

Top 10 Insurance Companies To Buy Right Now

It has also partnered with local auto dealerships to offer discounts on cars to members. While at the outset this might seem like a gimmick, the theory behind it is brilliant. Costco customers are car owners. In order to get the most out of a membership, you have to be able to transport a huge amount of dog food -- or whatever. Costco members are also deal seekers. You don't just happen into a Costco with a coupon from the paper -- you have to really want to save.

Management recognized that it could provide a new service and attract new customers by partnering with local dealerships, who themselves may become members. That kind of cycle is what makes Costco such a solid business. In short, it's founded on relationships.

Growth for investors
But buying at Costco isn't the only good deal the company offers. Over the last three years, an investment in Costco has proven to be a world beater. The chart below shows the total return from 2010 to today for Costco and its competitors.

COST Total Return Price data by YCharts.

Costco has been the clear winner, beating out both Target (NYSE: TGT  ) and Wal-Mart (NYSE: WMT  ) . Wal-Mart, in particular, has struggled recently. Reports have come out that indicate the company is having trouble keeping its stores stocked, due to the sheer physical effort required. Target, meanwhile, has had limited success in the last year with its new product lines. The company's tie-in with Neiman Marcus last holiday season was a flop.

The bottom line
With its strong customer base and relationship-focused business plan, Costco represents the better side of American retail. Workers at the company have generally positive reviews of Costco, and the brand has never been stronger. The company isn't cheap, but now looks like a great time to get in, nonetheless.

Costco's low prices haven't just benefited customers -- shareholders have walloped the market, returning 11,000% over the past two decades. However, with prices near all-time highs, is the ride over for Costco investors? To answer that and more, The Motley Fool's compiled a premium research report with in-depth analysis on Costco. Simply click here now to gain instant access to this valuable investor's resource.

Tax-Smart Ways to Give

I'd like to give money to charity before the end of the year. Can you suggest some ways I can still do that and get the best tax break?

SEE ALSO: 12 Smart Tax Moves to Make Now

People who itemize their deductions generally scramble to write checks before New Year's Eve so they can deduct the contributions on their tax return for the year. But there may be more effective ways to give.

Donate appreciated stock. It's been a good year for the markets, and some of your investments may have big gains. If you are planning a significant cash gift before year-end, consider donating appreciated stock or mutual fund shares instead. As long as you have owned the asset for more than a year, you can deduct the fair market value – not just the lower amount you paid for the asset. And you get that beefed-up deduction even though you don't have to pay tax on the appreciation. Another advantage: You don't have to establish your tax basis for the stock or shares, which may be hard to do if you've lost the purchase records or if the company has been involved in spinoffs and mergers. You deduct the value on the date of the gift. Contact the charity as soon as possible to ask what you need to do to transfer ownership of the shares. (Never donate assets which have declined in value. Sell first, so you can deduct the capital loss, and then give the proceeds to the charity.) See Charities: Give Stocks Instead for more information.

Hot Growth Stocks To Own Right Now

Donate your IRA required minimum distribution. If you're over 70½, you may make a tax-free transfer of up to $100,000 from your traditional IRA to a charity before December 31, 2013. The money counts as your required minimum distribution but isn't added to your adjusted gross income. This has two potential advantages over withdrawing the money (which would then count as taxable income) and donating the cash so you can offset the income with an itemized deduction. First, you score a tax break even if you don't itemize. Second, by keeping the money out of your AGI in the first place, it can't trigger tax consequences such as making more of your Social Security benefits subject to taxes or imposing the new surtax on investment income. The money must be transferred directly from your IRA to the charity to stay out of your adjusted gross income. See Who Can Transfer IRA Funds to Charity for more information about the rules, and Don't Forget to Take Your IRA Required Distribution for tips on the timing of the year-end transfer.

Contribute to a donor-advised fund. These funds, run by brokerage firms, banks, mutual fund companies and community foundations, are a great way to fulfill your charitable impulses. And they're particularly attractive at this time of year, if you're racing to meet the deadline for 2013 contributions but haven't chosen the charities you wish to support. Contribute cash, stock and funds (tax-free transfers from IRAs are not permitted) by December 31 and you can decide later which charities will benefit. Until you give the order, your money is invested. When you're ready, you can usually direct the money to any qualified, 501(c)3 charity. Many families use these funds to allow multiple generations to get involved without setting up an expensive family foundation. "The grandparents may set up the fund around the holidays and tell each family that they have x dollars to give," says Sara Montgomery, philanthropic services specialist with Wells Fargo Private Bank. "Then they all come to the dinner table a few months later and explain which charity they gave to and why it was meaningful to them." Investment minimums vary by administrator. The minimum at Fidelity and Schwab is $5,000; at Vanguard, $25,000; and at Wells Fargo, $50,000. See Donor-Advised Funds: Contribute Now, Donate Later for more information.

Set up a scholarship fund.Although a lot of people would like to set up a scholarship fund to honor a deceased friend or relative, or to help a student pay for college, it can be a very complicated endeavor. But many colleges and community foundations make the process easy. You'll generally need to invest at least $20,000 to $25,000 to endow a scholarship that will pay out $1,000 every year, although individual institutions set their own rules. For example, San Diego State University currently requires $50,000 to endow a $2,000 annual scholarship, or you can commit to giving $5,000 a year over three years to finance three $5,000 annual scholarships. The University of California, Los Angeles, requires $100,000 to endow a $5,000 annual scholarship, but you can create a scholarship for one year with just $1,000. The college or community foundation will manage the money and look for applicants, and it may even match your contribution. See Help Students by Funding a Scholarship for more information.

Consider noncash donations.You don't have to give money to get the tax break. You can also donate clothes and household goods. If you itemize, you may deduct the fair market value of the item (which is based on its current condition and is usually a lot lower than the purchase price); for help determining the value, go to TurboTax's ItsDeductible or the Salvation Army's guide. You may also deduct, say, the cost of ingredients for a dinner you make for a soup kitchen or stamps for a charity's mailing, and up to 14 cents a mile if you drive your car for charitable activities in 2013. Hold on to records and receipts in case the IRS asks. See How to Properly Claim Deductions for Noncash Donations and IRS Publication 526 Charitable Contributions for more information about what qualifies and when you need a receipt from the charity or an appraisal.

And as you scramble to make contributions before year-end, think about how much easier it would be if you had planned your charitable giving earlier in the year. "Make it a line item in your budget, just like you would for a mortgage or car payment," says Montgomery. "Saving $5, or $50, a week is a lot easier than coming up with a lump sum all at once." You could stash the money in a savings account or another separate account so it is ready whenever you choose to give. Setting aside money throughout the year also makes it easier to give after a disaster -- such as to support the victims of an earthquake -- which could occur at any time. See 6 Things You Need to Know About Giving to Charity for more information about checking out a charity.

Got a question? Ask Kim at askkim@kiplinger.com.

Hilton Up 7.7% in Trading Debut

Hilton Worldwide Holdings Inc.’s shares rose in their trading debut, after the hotelier and some insiders sold more stock than initially planned in a $2.35 billion initial public offering.

The shares were up 7.7% at $21.54 in midmorning trading Thursday, after opening at $21.30. Late Wednesday, Hilton and some existing holders agreed to sell 117.6 million shares for $20 each. Underwriters may sell more stock, increasing the deal size.

The deal marks the world’s largest hotel IPO by proceeds, topping Hyatt Hotels Corp.'s(H) $1.1 billion debut in November 2009, according to Dealogic.

Hilton’s debut caps a multi-year turnaround and marks a big paper profit for the company’s majority owner, private-equity firm Blackstone Group LP(BX). Blackstone acquired the company for about $25 billion in debt and equity in 2007, the height of the last decade’s real-estate and buyout boom. The buyout firm isn’t selling any stock in the offering.

Recently, the hotel operator has benefited from rebounding room rates in its industry and a strategy of growing revenue and expanding its brand through franchising agreements, a less-costly approach than owning property outright.

Hilton enjoyed healthy demand for its IPO during a marketing road show, pricing the deal a day ahead of schedule as bankers’ order books filled up quickly. As the deal was being priced Wednesday, Hilton opted to sell about 4%
more stock than initially planned.

The shares are listed on the New York Stock Exchange under the symbol “HLT.” Deutsche Bank AG(DBK.XE) led the offering with Goldman Sachs Group Inc., Bank of American Merrill Lynch and Morgan Stanley.

Elsewhere in the IPO market, food services company Aramark Holdings Corp. opened at $20.25 Thursday, up 1.3% from its $20 offer price. That was the low end of the range the company had expected, according to a regulatory filing. In midmorning trading, the shares were up 7.1%.

The company and existing holders agreed to sell 36.3 million shares, raising $725 million.

The Philadelphia company’s IPO is its third, following a series of buyouts in the last four decades, the latest by a group of private-equity firms including Warburg Pincus LLC and Thomas H. Lee Partners in 2007.

Rising stock-market valuations have fueled a spate of IPOs this year, many of them by private equity-backed companies looking to harvest past years’ investments.

Three other companies were set to begin trading Thursday morning following IPOs: TetraLogic Pharmaceuticals Corp., CatchMark Timber Trust Inc. and Kindred Biosciences Inc.

Scorpio Bulkers Inc., a Monaco-based shipping company with shares listed on a Norwegian over-the-counter market, agreed to sell U.S. stock alongside an exchange offer for the existing shares-a transaction akin to an IPO.

E*TRADE Financial Corporation (NASDAQ:ETFC): Insider Buying: This Director Throws Darts.

Last week was another solid week of insider buying. Hopefully, the continued pace of insider buying is foretelling the future of the US/Global economy; many could use the holiday/2014 cheer. iStock's fingers are crossed for all of our readers looking for real work – good luck.

Luck doesn't seem to be necessary for this week's purchase. E*TRADE Financial Corporation (NASDAQ:ETFC) director Rodger Lawson has an enviable track record.

In case you don't know, E*TRADE is the one with the talking baby commercials. They are a financial services company that provides online brokerage, related products, and services primarily to individual retail investors under the E*TRADE Financial brand in the United States.

[Related -How To Profit From The Shutdown Aftermath]

The director has purchased shares of the financial services company three previous times during the past two-years, and each time, the price went up immediately afterwards. He's also had success buying UnitedHealth Group Inc. (NYSE:UNH) as an insider. As readers of our weekly insider article know, we love us some past performance.

A quick review of Lawson's purchase might help illustrate his successful investing past.

February 27, 2012 – Bought 1,313 Shares of ETFC at $9.51 (up 12.72% one year later)August 13, 2012 - Bought 7,528 Shares of ETFC at $8.45 (up 73% one year later)May 13, 2013 - Bought 4,479 Shares of ETFC at $11.16 (up 62.72% since)January 13, 2013 - Bought 2,000 Shares of UNH at $54.42 (up 35.89% since)August 19, 2013 - Bought 1,000 Shares of UNH at $71.64 (up 3.2% since)

[Related -E TRADE Financial Corporation (ETFC): E*TRADE Put Options In Play As Shares Slide]

A ton of money managers that would love to have that sort of performance. Last week, the E*TRADE director bought 2,754 shares at $18.15 for a total investment of $49,994.70. The trade is so fresh that it hasn't made most newswire accounts, yet.

In iStock's view, the most important metric for discount brokerage firm is Daily av! erage revenue trades; otherwise known as DARTs. According to ETFC's most recent 10-Q, "DART volume increased 13% to 145,150 and 5% to 147,777 for the three and nine months ended September 30, 2013, respectively, compared to the same periods in 2012."

As you can see, the metric accelerated in the last three-months. As a result, "Trading and investing commissions increased 14% to $102.8 million and 6% to $309.8 million for the three and nine months ended September 30, 2013, respectively, compared to the same periods in 2012."

Not surprisingly, the company announced the following since it' last EPS report, "Daily Average Revenue Trades ("DARTs") for October were 159,703, a nine percent increase from September and a 29 percent increase from the year-ago period. The Company added 30,276 gross new brokerage accounts in October, ending the month with approximately 3.0 million brokerage accounts — an increase of 3,193 from September."

Our guess, educated, is that E*TRADE will release similar, maybe better numbers for November in the next few days. It's also likely the trend has continued through the early part of December, at least that's our connected dot theory.

Overall: Director, Rodger Lawson's history of getting it right with E*TRADE Financial Corporation (NASDAQ:ETFC), combined with accelerating DARTs makes ETFC a reasonable discount trade candidate.

Bitcoin worth almost as much as gold

Bitcoin prices continued their record run. The new all-time high is close to what it costs to buy an ounce of gold.

NEW YORK (CNNMoney) Bitcoins are now worth nearly as much as an ounce of gold.

The price of one bitcoin rose as high as $1,242 early Friday, just two days after crossing $1,000 for the first time. Prices subsequently fell back to about $1,155. Meanwhile, gold prices were trading around $1,250 an ounce, down about 25% for the year.

Bitcoin has surged this year on hopes the experiment in digital money will eventually become a legitimate global currency. One bitcoin was worth about $13 in January.

Bitcoin, which trades non-stop on the Mt. Gox exchange and other online markets, has been extremely volatile. It rose to what was then an all-time high of $900 earlier this month, only to fall back to $500 in the span of 28 hours.

Demand for bitcoin has been particularly strong in China, where the leading search engine, Baidu (BIDU), now accepts the currency for certain services.

In the United States, lawmakers have been examining potential regulations for bitcoin, which is the currency of choice on certain online markets for drugs and other illicit goods.

Federal authorities shut down the online drug bazaar Silk Road last month, though a new version of the market has resurfaced a few weeks later.

Bitcoin has received a measure of support from officials at the Federal Reserve, including chairman Ben Bernanke, who said the currency "may hold long-term promise" as part of the international payment system.

Some proponents say government regulation would be a positive for bitcoin, since it could lead to wider adoption of the currency. But others argue that bitcoin is decentralized by design and the government should leave well enough alone.

Investors say bitcoin is highly speculative, and should not exceed 1% of a portfolio. Many have compared bitcoin to a lottery ticket, saying it could be worth a lot, or nothing at all.

Bitcoin prices surged in April following an unprecedented bailout of the banking system in Cyprus, a move that led to concerns about the stability of European banks and the euro currency. But prices plunged in May in what many saw as the bursting of a bubble. Bitcoin traded in a range around $100 for most of the summer before the current rally kicked off in October.

Meanwhile, a growing number of businesses now accept bitcoins, ran! ging from some Subway sandwich shops to Richard Branson's commercial space travel venture, Virgin Galactic.

  How I make money mining bitcoins

The program behind Bitcoin was created anonymously and introduced on the internet in 2010. Unlike traditional paper currencies, bitcoins are not managed by a central authority and exist only in cyberspace.

Bitcoins are "mined" by powerful computers that complete complex math problems. The total quantity of bitcoins is capped at 21 million, and about 12 million are currently in circulation, according to blockchain.info.

The Bank of Nova Scotia Meets EPS Estimates; Declares Dividend (BNS)

Before the opening bell today, The Bank of Nova Scotia (BNS) announced its fourth quarter earnings, posting higher net income than last year’s same quarter. 

BNS Earnings in Brief

-BNS reported Q4 net income of $1.7 billion, up 12% from last year’s Q4 net income of $1.52 billion.
-Adjusted diluted EPS came in at $1.31, up from last year’s Q4 EPS of $1.20.
-The company’s EPS matched analysts’ EPS estimates.
-For the full year, BNS reported net income of $6.7 billion, and EPS per diluted share of $5.15.

CEO Commentary

Brian Porter, Scotiabank President and CEO, had the following to say about the company’s fiscal year: “Scotiabank experienced another year of solid performance with underlying earnings growing 15%. The Bank’s enterprise strategy and diversified business model continue to differentiate us from our competitors in Canada and internationally and once again have enabled us to deliver strong results.”

Dividend Declared

BNS declared a quarterly dividend of 62 cents, which will be paid on January 29, 2014 to all shareholders of record on January 7, 2014. The stock goes ex-dividend on January 3. BNS most recently its dividend in October this year, where the dividend increased from 60 to 62 cents.

Stock Performance

BNS stock was inactive in pre-market trading. YTD, the stock is up just 2.06%, lagging the broader market.

Best Undervalued Stocks To Invest In 2014

From an individual investor’s perspective, it is truly amazing to think of how the world of finance has changed in the last 20 years. Moore’s Law and the resulting explosion of computational power, the speed and accessibility of the Internet, and access to far off markets through financial instruments like ETFs have made investing much more accessible to the retail crowd. These forces have contributed to an erosion of the information advantage between Main Street and Wall Street, as discussed a few weeks ago here.

It�� fun to read about the days of yesteryear when investing stalwarts like Warren Buffett drove from town to town buying paper stock certificates from individuals in businesses he thought were undervalued. It�� also fun to recall the days of Wall St. when ��rick��cellphones were exclusive to high-powered executives and Wall St. traders. Think about the phone popularized by iconic movie star Michael Douglas in the 1987 Hollywood classic, ��all Street.��[Given it�� the Weekend Edition, we��e throwing in the timeless ��reed is good��speech delivered in ��all Street��via Michael Douglas�� character Gordon Gekko, if you��e so inclined.] Calls between brokers while on their ��rick��phones was one of the only ways to buy or sell stock while on the move.

Best Undervalued Stocks To Invest In 2014: Schlumberger N.V.(SLB)

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

Advisors' Opinion:

• [By Tyler Crowe]

  Even though the country has so much oil, it has struggled to keep up production growth and has asked for outside help. This week, Venezuela has signed financing deals with Chevron (NYSE: CVX  ) , Schlumberger (NYSE: SLB  ) , and Russia's Rosneft that will total $5.6 to expand production. The country hopes to increase production from 3 to 5 million barrels per day by 2015.

Best Undervalued Stocks To Invest In 2014: Caterpillar Inc.(CAT)

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

Advisors' Opinion:

• [By Jeremy Bowman]

  The Dow Jones Industrial Average (DJINDICES: ^DJI  ) �traded mostly mixed today as investors reacted to an ambiguous earnings season thus far, finishing the day up 0.1%. Even then, it was the worst performer among the three major indexes. Stock downgrades weighed on the blue chips, while Caterpillar (NYSE: CAT  ) shares jumped despite missing earnings estimates.

• [By Laura Brodbeck]

  Notable earnings released on Wednesday included:

  Caterpillar, Inc. (NYSE: CAT) reported third quarter EPS of $1.45 on revenue of $13.40 billion, compared to last year�� EPS 0f $2.54 on revenue of $16.44 billion. Boeing Company (NYSE: BA) reported EPS of $1.80 on revenue of $22.10 billion, compared to last year�� EPS 0f $1.35 on revenue of $20.01 billion. Bristol-Myers Squibb Company (NYSE: BMY) reported third quarter EPS of $0.46 on revenue of $4.07 billion, compared to last year�� EPS 0f $0.41 on revenue of $3.74 billion. Motorola, Inc (NYSE: MSI) reported third quarter EPS of $1.32 on revenue of $2.11 billion, compared to last year�� EPS 0f $0.84 on revenue of $2.15 billion. AT&T Inc. (NYSE: T) reported third quarter EPS of $0.66 on revenue of $32.20 billion, compared to last year�� EPS of $0.63 on revenue of $31.46 billion.

  Pre-Market Movers

Top 5 Blue Chip Companies For 2014: Dollar Tree Inc.(DLTR)

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

Advisors' Opinion:

• [By Victor Reklaitis]

  Today�� movers & shakers: Retailers have dropped in the wake of disappointing quarterly results or outlooks. Target Corp. (TGT) �was down 4% after posting weaker margins and earnings at its U.S. business, while Dollar Tree Inc. (DLTR) �dropped 4% after its earnings fell in the third quarter. Read more in the Movers & Shakers column.

• [By Terri Stridsberg]

  Dollar Tree (DLTR), has had a banner 2013, gaining 45.3% year-to-date, and tagging a new record high of $59.68. Nevertheless, short interest skyrocketed by close to 398% over the most recent reporting period, and now accounts for a healthy 6.7% of the equity's available float.

• [By Paul Ausick]

  The other stock the firm likes is Dollar Tree Inc. (NASDAQ: DLTR). The company�� shares have lost about 4.6% since reporting an earnings per share (EPS) miss for the third quarter and the Sterne Agee analysts see the lower price as a ��reat entry point��for buying the stock. Dollar Tree raised fiscal year 2013 EPS guidance from a range of $2.66 to $2.77 to a new range of $2.72 to $2.78, effectively raising the mid-point by $0.04. Sterne Agee reiterated its Buy rating on the stock with a price target of $63. Dollar Tree�� shares are trading down nearly 0.4% at $55.99 in a 52-week range of $37.47 to $60.19.

Best Undervalued Stocks To Invest In 2014: Tupperware Corporation(TUP)

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

Advisors' Opinion:

• [By John Udovich]

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

• [By Oliver Pursche]

  European large-cap pharmaceuticals like Novartis (NVS) �and Bristol Meyers Squibb (BMY) �count amongst some of our favorite stocks right now, as do U.S. multinationals that are growing revenue and margins in Asia ��Tupperware (TUP) �is a shining example. Stay away from utilities and energy stocks, as they are likely to be the laggards over the next year.

• [By Eric Volkman]

  Tupperware Brands (NYSE: TUP  ) is reaching into its corporate bowl for a fresh payout to shareholders. The company has declared a quarterly dividend of $0.62 per share. This will be paid on July 8 to stockholders of record as of June 19. That amount matches the firm's previous distribution, which was paid in early April. Prior to that, Tupperware Brands was rather less generous, handing out $0.36 per share.

• [By Brian Pacampara]

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

Gov’t loses $139M on loan to hybrid car maker

WASHINGTON (AP) — The Obama administration said Friday it will lose $139 million on a loan to struggling electric car maker Fisker Automotive after selling part of the loan to a private investor that immediately took the company into bankruptcy.

Hybrid Technology, the California car marker's new owner, said it plans to keep Fisker operating after it emerges from bankruptcy.

The $139 million loss is the largest in the Obama administration's green-energy loan program since the 2011 failure of solar panel maker Solyndra. The government lost $528 million in the Solyndra collapse, triggering sharp Republican criticism of the loan program and President Obama's investments in green energy.

The Energy Department awarded Fisker a half-billion loan guarantee in 2009, but suspended it in 2011, after Fisker failed to meet a series of benchmarks. Fisker had received $192 million before the loan was frozen.

The Energy Department said it had recovered about $28 million before selling the remainder of the loan to Hybrid on Friday for $25 million. Hybrid is owned by Hong Kong billionaire Richard Li.

The department's actions, along with the sale, mean the Energy Department has protected nearly three-quarters of its original commitment to Fisker, Energy spokesman Bill Gibbons said Friday.

"While this result is not what anyone hoped, the ($139 million loss) represents less than 2% of our advanced vehicle loans, and less than one-half of 1% of our overall loan program portfolio" of more than $30 billion, Gibbons said.

Rep. Marsha Blackburn, R-Tenn., vice chair of the House Energy and Commerce Committee, called that small solace.

"Once again, American taxpayers are losing out to foreign investors due to the Obama administration's failed green energy policies," Blackburn said. "Time after time, this administration has fumbled the ball with their attempts to pick winners and losers when it comes to American energy."

In September, the Energy Department lost about $42 millio! n on a loan to a shuttered Michigan company that made vans for the disabled. Vehicle Production Group, or VPG, suspended operations in February and laid off 100 workers. The company has said it plans to continue production of the wheelchair-accessible vans, which are powered by natural gas, at its Indiana plant.

A spokeswoman for Hybrid Technology said Fisker's new owners are committed to ensuring that the car company, which makes the $100,000 Karma plug-in sedan, continues to design and manufacture electric cars.

"We will work to realize the full potential these fantastic cars offer in helping to remake the auto industry for the 21st century," Caroline Langdale, a spokeswoman for Hybrid, said in a statement.

Langdale declined to say where the company will make its cars, but the Energy Department said Hybrid has committed to moving manufacturing of the Karma from Finland to the U.S., with engineering and design remaining in California.

Blackburn said Fisker is an example of what she called the Obama administration's misguided policies. The loan guarantee program "is quickly becoming a highly utilized stimulus program for foreign investors," she said.

Big Stock Buyback Trumps Convertible Debt Offering by Yahoo!

Yahoo! Inc. (NASDAQ: YHOO) has made two announcements hidden in one announcement after the close on Tuesday. The first announcement is a $1.0 billion convertible senior notes offering which will mature in 2018. The more important announcement is that Yahoo! has increased its common share buyback authorization by $5.0 billion.

Today’s note offering is a private placement as a Rule 144A under the Securities Act of 1933, meaning that they will not be registered securities and will never see the light of day for retail investors. The notes will be convertible into cash, shares of Yahoo's common stock or a combination of cash and shares of common stock, at Yahoo's election. Yahoo! said that it may use up to $200 million of the net proceeds to repurchase shares of its common stock from purchasers of notes in the offering in privately negotiated transactions.

Back on July 22, Yahoo! announced that it had entered into an agreement to repurchase 40 million shares of its common stock owned by Third Point LLC at a purchase price of $29.11 per share. Shares closed down almost 1% at $34.63 on Tuesday, but the shares are back up almost 2% more at $35.40 in the after-hours after this report. Yahoo!’s stock has traded in a 52-week range of $18.19 to $36.19.

As far as what another $5 billion translates to in real world terms, the stock’s market cap according to Yahoo! Finance is just over $36 billion.

U.K. Stocks Erase Advance in Final Half Hour of Trading

U.K. stocks erased gains in the final half an hour of trading, with the benchmark FTSE 100 (UKX) Index posting its first monthly loss since August, as the pound strengthened to a two-year high.

Experian (EXPN) lost 2.8 percent for the biggest decline on the FTSE 100 Index after Goldman Sachs Group Inc. recommended selling the credit-reference company's shares. Speedy Hire Plc (SDY) tumbled the most since January 2009 after the construction-equipment leasing company reported accounting irregularities and its chief executive officer resigned. Barclays Plc (BARC) advanced 2.3 percent, pushing a gauge of banks higher.

The FTSE 100 dropped 3.9 points, less than 0.1 percent, to 6,650.57 at the close in London, erasing an earlier advance of as much as 0.4 percent. The equity benchmark slid 1.2 percent in November. It has still rallied 13 percent this year as central banks around the world pledged to keep interest rates low for a prolonged period to support the economic recovery. The FTSE All-Share Index fell less than 0.1 percent today, while Ireland's ISEQ Index gained 0.2 percent.

"Trading volumes are very light today, with the U.S. markets partially closed," James Buckley, who helps oversee about $50 billion as a portfolio manager at Baring Asset Management Ltd. in London, said by phone.

The number of shares changing hands in companies listed on the FTSE 100 was 14 percent lower than the average of the past 30 days, data compiled by Bloomberg showed. The U.S. stock market closes at 1 p.m. New York time today following yesterday's Thanksgiving holiday.

Pound Strengthens

The pound rose as much as 0.3 percent to $1.6384, its highest level since August 2011, as reports showed U.K. mortgage approvals and house prices increased.

Lenders granted 67,701 mortgages in October, the most since February 2008, the Bank of England said. A separate release by the Nationwide Building Society showed British house prices climbed at an annual pace of 6.5 percent in November compared with 5.8 percent in October.

A Eurostat report showed unemployment in the euro area fell to 12.1 percent in October from 12.2 percent in September. Economists in a Bloomberg survey had predicted the figure would remain at a record.

Experian Downgrade

Experian dropped 2.8 percent to 1,127 pence after Goldman Sachs lowered its recommendation on the shares to sell from neutral. The brokerage cited the stock's high valuation and its slowing growth. Experian trades at 20.1 times estimated earnings, compared with a five-year average of 16.4 times, according to data compiled by Bloomberg.

Speedy Hire plunged 22 percent to 50.5 pence after the company said it uncovered false accounting at its business in the Middle East. The company predicted that the irregularities will cost it as much as 5 million pounds ($8.2 million), reducing pretax profit in the year ending March 31 by 3 million pounds, according to a statement. Chief Executive Officer Steve Corcoran resigned.

Barclays climbed 2.3 percent to 271.7 pence and Lloyds Banking Group Plc advanced 0.7 percent to 77.4 pence. A gauge of lenders on the FTSE 350 Index climbed 0.5 percent today.

Talvivaara Mining Co. jumped 40 percent to 4.6 pence, the largest rally since it listed in London in May 2007. A district court in Espoo, Finland, where the nickel miner is based, decided to begin the restructuring of the company. Talvivaara filed for a corporate reorganization on Nov. 15 to raise funds and avoid bankruptcy.