Calvert CEO Barbara Krumsiek to Step Down

Calvert Investments Inc., a socially responsible investing mutual fund firm, announced that its president and CEO, Barbara Krumsiek, will vacate those positions by year end, though she will remain chairwoman of the Calvert board. In addition, she will become the first chairwoman of the newly created Calvert Institute, which is designed to “promote the growth of sustainable and responsible investing (SRI) through research, advocacy and fostering innovation in the field of sustainable investing,” according to a company statement. The institute will begin operations on Jan. 1.

The search for Krumsiek’s replacement as CEO will be led by Executive Vice President Bill Lester of Ameritas Holding Co., parent company of Calvert Investments. In the same statement, Lester noted that under Krumsiek’s tenure Calvert’s AUM tripled, to more than $13 billion as of April 30, while helping to bring “sustainable and responsible investment strategies” to both individual and institutional investors, particularly in 401(k)s.

Krumsiek, 61, said that leading the new institute will allow her “to pursue what I am personally passionate about — promoting corporate social responsibility throughout the world to secure a better future for generations to come.”

Krumsiek joined Calvert in 1997 as president and CEO and has long been a leader in the SRI space. She spent three years as co-chair of the U.N. Environment Programme-Finance Initiative and also developed the Calvert Women’s Principles, a global code of corporate conduct focused on women.

Speaking of the Principles in 2010, Krumsiek said “In order for companies to reach their full potential, they must create an environment in which women are treated equally, where they hold key leadership positions, and are full participants in decision making.”

(Calvert Investments puts its human capital money where its mouth is: "We have a policy of actively hiring and promoting women and minorities and our workforce reflects a 33% minority representation," it reports on its website.) 

She has received numerous honors over the year for her pioneering work, including being named twice to ThinkAdvisor’s Top Women in Wealth list (in 2009 and again in 2010).

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Check out The Right Mix: SRI Investing, Sustainability on ThinkAdvisor.

Report: FBI, SEC probe Icahn, Mickelson and…

Federal investigators have launched what the Wall Street Journal is calling "a major insider-trading probe involving finance, gambling and sports" that involves the trading of activist investor Carl Icahn, pro golfer Phil Mickelson and Las Vegas bettor William "Billy" Walters.

According to a story published on the Journal website late Friday, the Federal Bureau of Investigation and the Securities and Exchange Commission are probing whether Mickelson and Walters illegally traded on nonpublic information they allegedly obtained from Icahn about his investments in public companies. The Journal story attributed the information to "people briefed on the probe."

The feds are said to be investigating whether the past three years Icahn illegally provided Walters — well known in Vegas for his sports-betting abilities — about potentially market-moving investments by Icahn's company, Icahn Enterprises, the Journal story said.

Icahn, Mickelson and Walters are quoted in the article as denying any knowledge of a probe or declining comment.

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"We do not know of any investigation," Mr. Icahn told the Journal Friday. "We are always very careful to observe all legal requirements in all of our activities." The suggestion that he was involved in improper trading, he said, was "inflammatory and speculative."

Mickelson is in Dublin, Ohio, playing The Memorial presented by Nationwide Insurance. He shot 70 on Friday to make the cut and is scheduled to tee off Saturday at 10:27 am ET.

Citing anonymous sources, the Journal story said the government probe started three years ago after Icahn accumulated a 9.1% stake in Clorox in February 2011. On July 15, 2011, he made a $10.2 billion offer for Clorox that caused the stock to jump.

"Well-timed trading around the time of his bid caught the attention of investigators, who began digging into the s! uspicious trading in Clorox stock, the people familiar with the probe said," according to the Journal article.

Clorox ultimately rejected Icahn's bid. He later launched a proxy battle, proposing a slate to replace the company's board with 11 of his nominees. In September 2011, he ended the proxy fight and by year-end had sold his Clorox stake.

According to the Journal, "the investigators later expanded their probe to look at trading patterns by Walters and Mickelson relating to Dean Foods, said the people briefed on the probe.

Stocks: 4 things to know before the open

Click on chart to track premarkets

LONDON (CNNMoney) It looks like Wall Street will finish the month of May in positive territory, even though futures were showing a bit of weakness Friday.

Here are four things you need to know before the opening bell:

1. Stock markets have a spring in their step: So far this month, the S&P 500 has surged by nearly 2% to hit new record highs. The Dow Jones industrial average has gained 0.7% and the Nasdaq has posted a dramatic rebound after two months in the red, adding more than 3%.

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But will the gains continue on the final day of trading in May?

U.S. stock futures were lower, indicating stocks could retreat from recent record-setting levels. The CNNMoney Fear & Greed index is in neutral territory.

On Thursday, the S&P 500 closed at 1,920, surpassing its previous record high from earlier this week. The Dow Jones industrial average closed 0.4% higher and the Nasdaq ended up 0.5%.

2. Market movers -- BNP Paribas, Salesforce, Ford: Shares in BNP Paribas (BNPQF) declined by roughly 5% in Europe after the Wall Street Journal reported that U.S. authorities were pushing the bank to pay more than $10 billion to settle a criminal probe of alleged sanctions violations.

Salesforce (CRM) shares were up in extended trading after the company announced a partnership with Microsoft (MSFT, Fortune 500).

Ford (F, Fortune 500) stock was under a bit of pressure after the automaker announced four recalls affecting at least 1.4 million vehicles.

3. Data, data, data!: The U.S. government will release personal income and spending numbers for April at 8:30 a.m. ET. The University! of Michigan will publish a final reading of its May consumer sentiment index at 9:55 a.m.

4. International action: European markets were lower in morning trading, led by declines in the mining sector.

"A fresh record high for the S&P 500 has failed to enthuse London markets, as some worrying news from China sent miners lower," wrote IG analyst Chris Beauchamp in a market report, where he also mentioned concerns about weak manufacturing. "Warnings seem to be coming through with disturbing regularity, and the sharp drops in share prices that follow suggest that investor sentiment is far from being rock solid."

Asian markets ended with mixed results.

Investors in India are waiting for the latest report on quarterly GDP, which will be released at 8 a.m. ET. The Mumbai Sensex was little changed.

Top Energy Stocks To Own For 2015

Top Energy Stocks To Own For 2015: National Fuel Gas Company(NFG)

National Fuel Gas Company, through its subsidiaries, operates as a diversified energy company primarily in the United States. The company operates through four segments: Utility, Pipeline and Storage, Exploration and Production, and Energy Marketing. The Utility segment sells natural gas or provides natural gas transportation services to approximately 727,000 customers in Buffalo, Niagara Falls, and Jamestown, New York; and Erie and Sharon, Pennsylvania. The Pipeline and Storage segment provides interstate natural gas transportation and storage services for affiliated and nonaffiliated companies through an integrated gas pipeline system; and 27 underground natural gas storage fields, as well as 4 other underground natural gas storage fields owned and operated jointly with other interstate gas pipeline companies. This segment also transports natural gas for industrial customers and power producers in New York State. It owns the Empire Pipeline, a 157-mile pipeline; and the Empire Connector, which is a 76-mile pipeline extension. The Exploration and Production segment engages in the exploration for, and the development and purchase of natural gas and oil reserves in California, in the Appalachian region of the United States, and in the Gulf Coast region of Texas and Louisiana. As of September 30, 2009, this segment had proved developed and undeveloped reserves of 46,587 thousand barrels of oil and 248,954 million cubic feet equivalent of natural gas. The Energy Marketing segment markets natural gas to industrial, wholesale, commercial, public authority, and residential customers primarily in western and central New York and northwestern Pennsylvania. The company also develops and operates mid-range independent power production and landfill gas electric generation facilities. National Fuel Gas Company was founded in 1902 and is based in Williamsville, New York.

Advisors' Opinion:

• [By David Dittman]

  Question: I note that National Fuel Gas Co (NYSE: NFG) is usually only rated a “hold.” Yet its been very consistent with paying dividends–including during the 29 crash and depression that followed.

source from Top Penny Stocks For 2015:http://www.topstocksforum.com/top-energy-stocks-to-own-for-2015.html

10 Best Electric Utility Stocks To Own For 2015

10 Best Electric Utility Stocks To Own For 2015: Mechel Steel Group OAO (MTL)

Mechel OAO, together with its subsidiaries, engages in mining and steel businesses in the Russian Federation, other CIS countries, Europe, Asia, the Middle East, the United States, and internationally. The company operates through four segments: Mining, Steel, Ferroalloys, and Power. The Mining segment engages in the production and sale of metallurgical and steam coal, coke, iron ore, and limestone, as well as chemical products, such as coal tar, naphthalene, and other compounds. The Steel segment produces and sells semi-finished steel products, carbon and special long products, and carbon and stainless flat products, as well as metal products, including wire products, forgings, and stampings. The Ferroalloys segment is involved in the production and sale of nickel ore, low-ferrous ferronickel, ferrochrome, and ferrosilicon. The Power segment engages in the generation and sale of electricity and heat energy from steam coal; and power distribution activities. The company, f ormerly known as Mechel Steel Group OAO, was founded in 2003 and is based in Moscow, the Russian Federation.

Advisors' Opinion:

• [By Eric Volkman]

  The coffers of Mechel (NYSE: MTL  ) are now much fuller. The company has signed an agreement for a 40 billion ruble ($1.3 billion) loan from VTB Bank, a lender based in Mechel's home base of Russia. Of the total, roughly 25 billion ($802 million) will go toward the servicing of short-term facilities coming due in 2013. It also aims to refinance other debt obligations with the monies.

• [By MONEYMORNING.COM]

  As a result, Russian stocks have generally been getting hammered. To keep the data clean and discrete, I ran the charts over the last three months. In that period, energy giants Gazprom OAO (OTC: OGZPY) and CNOOC Ltd. (ADR) (NYSE: CEO) are both off more than 18%. The steel company Mechel OAO (ADR) (NYSE: MTL) is off 24%.

• [By Travis Hoium]

  What: Shares of Russian coal miner Mechel (NYSE: MTL  ) fell as much as 10% today after the company announced fiscal-fourth-quarter earnings.

source from Top Penny Stocks For 2015:http://www.seekpennystocks.com/10-best-electric-utility-stocks-to-own-for-2015.html

Best Construction Material Companies To Own For 2015

Best Construction Material Companies To Own For 2015: CEMEX SAB de CV (CX)

CEMEX, S.A.B. de C.V. (CEMEX), incorporated on January 20, 1931, is a global cement manufacturer with operations in North America, Europe, South America, Central America, the Caribbean, Africa, the Middle East and Asia. The Company is a holding company engaged through the operating subsidiaries in the production, distribution, marketing and sale of cement, ready-mix concrete, aggregates and clinker. As of December 31, 2009, the Companys cement production facilities were located in Mexico, the United States, Spain, the United Kingdom, Germany, Poland, Croatia, Latvia, Colombia, Costa Rica, the Dominican Republic, Panama, Nicaragua, Puerto Rico, Egypt, the Philippines and Thailand.

The Company manufactures cement through a closely controlled chemical process, which begins with the mining and crushing of limestone and clay, and, in some instances, other raw materials. The clay and limestone are then pre-homogenized, a process which consists of combining diffe rent types of clay and limestone. The mix is typically dried, then fed into a grinder, which grinds the various materials in preparation for the kiln. The raw materials are calcined, or processed, at a very high temperature in a kiln, to produce clinker. Clinker is the intermediate product used in the manufacture of cement.

Ready-mix concrete is a combination of cement, fine and coarse aggregates, admixtures (which control properties of the concrete including plasticity, pumpability, freeze-thaw resistance, strength and setting time), and water. The Company is a supplier of aggregates primarily the crushed stone, sand and gravel, used in virtually all forms of construction.

Mexican Operations

During the year ended December 31, 2009, the Mexican operations represented approximately 21% of the Companys net sales. CEMEX Mexico is a direct subsidiary of CEMEX and is both a holding company for some of the operating ! companies in Mexico a nd an operating company involved in the manufacturing and ma! rketing of cement, plaster, gypsum, groundstone and other construction materials and cement by-products in Mexico. CEMEX Mexico, indirectly, is also the holding company for the international operations. The Company owns Tolteca, Monterrey, Maya, Anahuac, Campana, Gallo, and Centenario brands in Mexico. As of December 31, 2009, the Company owned 100% of CEMEX Mexico.

The Company competes with Holcim Ltd., Sociedad Cooperativa Cruz Azul, Cementos Moctezuma, Grupo Cementos Chihuahua and Lafarge Cementos in Mexico.

U.S. Operations

As of December 31, 2009, the Companys operations in the United States represented approximately 19% of the Companys net sales. As of December 31, 2009, the Company held 100% of CEMEX, Inc. As of December 31, 2009, CEMEX had a cement manufacturing capacity of approximately 17.9 million tons per year in the United States operations. As of December 31, 2009, the Company operated 14 cement plants located in Al abama, California, Colorado, Florida, Georgia, Kentucky, Ohio, Pennsylvania, Tennessee and Texas. As of December 31, 2009, it also had 48 rails or water served active cement distribution terminals in the United States. As of December 31, 2009, the Company had 336 ready-mix concrete plants located in the Carolinas, Florida, Georgia, Texas, New Mexico, Nevada, Arizona, California, Oregon and Washington and aggregates facilities in North Carolina, South Carolina, Arizona, California, Florida, Georgia, Kentucky, New Mexico, Nevada, Oregon, Texas, and Washington.

Spanish Operations

As of December 31, 2009, the operations in Spain represented approximately 5% of the Companys net sales. As of December 31, 2009, the Company held approximately 99.8% of CEMEX Espana, the main operating subsidiary in Spain. The cement activities in Spain are conducted by CEMEX Espana. The ready-mix concrete activities in Spain are conducted by Hormicemex! , S.A., a! subsidiar y of CEMEX Espana, and the aggregates activities in Spain ar! e conduct! ed by Aricemex S.A., also a subsidiary of CEMEX Espana.

U.K. Operations

As of December 31, 2009, the Companys operations in the United Kingdom represented approximately 8% of the Companys net sales. As of December 31, 2009, it held 100% of CEMEX Investments Limited, the holding subsidiary in the United Kingdom. The Company is a provider of building materials in the United Kingdom with vertically integrated cement, ready-mix concrete, aggregates and asphalt operations. It is also a provider of concrete and precast materials solutions, such as concrete blocks, concrete block paving, roof tiles, flooring systems and sleepers for rail infrastructure.

The Company competes with Lafarge, Heidelberg, Tarmac, and Aggregate Industries in the United Kingdom.

German Operations

As of December 31, 2009, the operations in the Rest of Europe consisted of the operations in Germany, France, Ireland, Poland, Croatia, the Czech Republic, Latvia, Austria and Hungary, as well as the other European assets. The Company is a provider of building materials in Germany, with vertically integrated cement, ready-mix concrete, aggregates and concrete products operations (consisting mainly of prefabricated concrete ceilings and walls). It maintains a network for ready-mix concrete and aggregates in Germany. As of December 31, 2009, the Company held 100% of CEMEX Deutschland AG, the holding subsidiary in Germany.

The Company competes with Heidelberg, Dyckerhoff, Lafarge, Holcim and Schwenk in Germany.

French Operations

As of December 31, 2009, the Company held 100% of CEMEX France Gestion (S.A.S.), the holding subsidiary in France. It is a ready-mix concrete producer and aggregate producer in France. As of December 31, 2009, the Company operated 239 ready-mix concrete plants in France, one maritime cement terminal located in LeHavre, on the ! northern ! coast of Franc e, 20 land distribution centers and 42 aggregates quarries.

The Company competes with Lafarge, Holcim, Italcementi, Vicat, Lafarge, Italcementi, Colas (Bouygues) and Eurovia (Vinci) in France.

Irish Operations

As of December 31, 2009, the Company held approximately 61.2% of Readymix Plc, the operating subsidiary in the Republic of Ireland. The operations in Ireland produce and supply sand, stone and gravel, as well as ready-mix concrete, mortar and concrete blocks. As of December 31, 2009, we operated 43 ready-mix concrete plants, 27 aggregates quarries and 15 block plants located in the Republic of Ireland, Northern Ireland and the Isle of Man. The Company imports and distributes cement in the Isle of Man.

The Company competes with CRH, the Lagan Group and Kilsaran in the Republic of Ireland.

Polish Operations

As of December 31, 2009, the Company held 100% of CEMEX Polska Sp. z.o.o. (CEMEX Polska), the holding subsidiary in Poland. It is a provider of building mat erials in Poland serving the cement, ready-mix concrete and aggregates markets. As of December 31, 2009, CEMEX operated two cement plants and one grinding mill in Poland, with a total installed cement capacity of three million tons per year. As of December 31, 2009, the Company also operated 39 ready-mix concrete plants and nine aggregates quarries in Poland. As of December 31, 2009, the Company also operated 10 land distribution centers and two maritime terminals in Poland.

The Company competes with Heidelberg, Lafarge, CRH and Dyckerhoff in Poland.

Southeast European Operations

As of December 31, 2009, the Company held 100% of CEMEX Hrvatska d.d. (Hrvatska), the operating subsidiary in Croatia. As of December 31, 2009, it operated three cement plants in Croatia, with an installed capacity of 2.4 million tons per year. As of December 31, 2009, the Company also operated ten land distribution centers, th! ree marit! ime cement terminals, e ight ready-mix concrete facilities and one aggregates quarry! in Croat! ia, Bosnia and Herzegovina, Slovenia, Serbia and Montenegro.

Advisors' Opinion:

• [By Monica Wolfe]

  Cemex SAB de CV (CX)

  As of the close of the third quarter there were nine guru owners of Cemex. These gurus held a combined weighting of 5.30%. During the third quarter, there were three gurus making buys and nine making sells of their stake in CX.

• [By Dan Caplinger]

  Even now, though, it's far from clear whether the recent rebound has staying power. Earlier this month, peer Vulcan Materials (NYSE: VMC  ) reported 5% lower shipments of aggregates, although rising prices helped offset the impact, and the company noted double-digit-percentage increases in shipments to hot housing areas including Arizona, California, and Florida. Similarly, Cemex (NYSE: CX  ) posted a substantial loss for its March quarter on with 5% lower revenue, but the Mexican company pointed to strength in the U.S. and Asian markets as offsetting weakness in Mexico, Europe, and Latin America.

source from Top Penny Stocks For 2015:http://www.seekpennystocks.com/best-construction-material-companies-to-own-for-2015.html

Without These Companies, There'd Be No Oil Boom

Don't look now, but the rig market for oil and gas projects is heating up again.

After suffering through a period when rigs were being "retired" from the field, the pendulum is swinging back again. Rigs are suddenly in high demand -- and hold the secret to how to invest in the growing U.S. shale oil boom.

This is hardly surprising. Without a rig, a well is nothing more than a place marked on a map.

That's why the oil field service (OFS) business always improves before the fortunes of field production companies.

But did you know there's an even earlier link in this profit chain?

Without it, the OFS business wouldn't exist and neither would the all of those oil wells. Yet what goes on in this portion of the business rarely gets reported on.

Nonetheless, it's the home of one of my favorite oil and gas plays...

The Equipment That Keeps it All Running

Of course, I'm talking about the companies that manufacture and distribute all of the massive equipment each well requires.

From pressure pumps to drill bits, down-hole motors and more, these are the companies that keep the OFS business humming.

That's why some of the biggest OFS providers - like Schlumberger (NYSE: SLB), Halliburton (NYSE: HAL) and Weatherford International (NYSE: WFT) - have been buying up oil and gas equipment companies.

It's part of an ongoing move by the big OFS outfits to consolidate access and increase profitability.

But the market for equipment in general and rigs in particular is a very fluid one.

There is also another factor to consider: when there's an upsurge in equipment demand like the one developing right now, there is also an inflationary factor.

Put simply, as demand heats up, so does the pricing spiral. But that's good news for the individual investor in the equipment sector.

In this case, the returns on the equipment slice of the business are registered up front, while the downward drag takes place further down the chain.

When considering how to invest, it is also important to remember that the oil-and-gas-equipment market is global. While rig demand is growing in North America, the need to develop fields is even more pressing in other parts of the world.

That's adding even more overall demand to a business with already limited availability. And unconventional production (shale gas, tight gas, shale oil, tight oil) has only made this situation worse.

Since the pay zones in these fields are horizontal rather than vertical, drilling equipment is more expensive and subject to more frequent delays in availability.

And then there is the peripheral footprint on the surface.

Fracking work at unconventional sites requires water pushed downhole under heavy pressure. That, in turn, requires a large array of pumping trucks and ancillary equipment surrounding the well head, along with compressor stations (to maintain pipeline pressure levels), retention basins (for flowback water) and a range of site-specific processing and separation units.

A working well is a massive array of parts and machinery.

In fact, here's a photo that shows just a portion of what the pumping footprint at a small frack operation looks like:

And this picture does not include everything else that is needed on the surface.

All of these things have major implications for the use and rates of a broad range of equipment. Add to this the repair/maintenance component, and there are solid prospects for a retail investment return.

The only question is how to invest in this trend...

How to Invest in Oil and Gas Field Equipment

With all the M&A going on in the OFS sector, and its reach further "upstream" into the manufacturing and distribution segment, figuring out how to invest in these opportunities could be a full-time job.

But it doesn't have to be with the two suggestions I'm about to give you.

The first is to use exchange traded funds (ETFs) that focus on the equipment and its utilization.

The second identifies a company likely to be in the center of this move up.

Remember, however, that this trend is cyclical. Once costs reach a certain level, the profitability of equipment application declines. At that point, inflationary pressures have moved into supplies, labor, transport, and other elements, and the field applications begin to taper off.

But in the interim, here's how to invest in the equipment side of the oil businsess.

First, let's talk about the ETFs.

I have periodically recommended to Energy Advantageand Energy Inner Circlemembers two standouts in this sector - the SPDR S&P Oil & Gas Equipment and Services ETF (NYSEArca: XES) and the Market Vectors Oil Service Holders ETF (NYSE MKT: OIH).

Both of these funds encompass the equipment and OFS sides of the business, although XES may be the more focused play if you're looking to primarily target the equipment prospects. But XES has been performing better than OIH of late, making it the better move.

It is important to keep in mind that ETFs also charge fees. While those fees are merely deducted from the share level realized, they nonetheless also reduce your returns.

But there is one company that stands to benefit most directly from what is happening in the equipment sector.

It's National Oilwell Varco (NYSE: NOV). This is one of the primary stand-alone (i.e., has not been acquired by an OFS big boy) providers of oilfield equipment and service.

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The company had been sluggish until recently. Over the last two weeks, NOV is up 6.17%--but given the business that it's in, this one is likely to head much higher.

Just be sure to use a trailing stop. I typically recommend my readers use a 30% trailing stop for most investments.

Trailing stops dictate when to sell based on a percentage from its highest level since acquisition. That protects your profits while limiting your risk.

And be sure to keep an eye on the equipment side of the business. It's not exactly sexy, but that's not always the best way to make money in the markets.

Editor's Note: The shale oil boom may have started in the U.S. and Canada, but now has begun to spread to many other parts of the world. Here Dr. Moors explains how to invest in this golden opportunity for those oil and gas companies that possess the expertise needed to exploit these vast new resources.

Five top stressors in retirement and how to cope

Oh, the retirement years — hours of relaxation, visiting family and doing many of the activities you've always wanted to do. Stress-free at last. Or maybe not.

Although some research suggests that retirees experience less stress than when they were working, a lot depends on the person, experts say.

Stress in retirement is linked to two key factors: health and financial status, says geriatric expert Richard Schulz, director of the University of Pittsburgh Center for Social and Urban Research. "People who have health problems continue to experience the stresses associated with these problems; financial difficulties also contribute to a stressed retirement experience.

"Involuntary retirement — due to health problems, downsizing, being fired — is associated with a more negative retirement experience," he says.

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Amit Sood, author of The Mayo Clinic Guide to Stress-Free Living, says the keys to lowering your stress include creatively tackling your stressors, having an attitude of gratitude, accepting people, especially your spouse, for who they are, and being kind to others and yourself.

Socialization is also a great way to ward off stress, says Steve Brody, a psychologist in Cambria, Calif., who works with retirees. He's the co-author of Renew Your Marriage at Midlife written with his wife, Cathy Brody. "We are social creatures, so we need to stay connected with others."

It's important to deal with stressors because your chances of a heart attack, stroke, cancer or early death are lower if you have less stress, says Sood, a professor of medicine at the Mayo Clinic in Rochester, Minn.

Five common stressors in retirement and ways to cope with them:

1. Financial concerns. Many retirees experience stress from living on a fixed income, Brody says. They worry that they won't be able to take care of themselves or t! heir family.

Stress-reduction strategy: Beware of "awfulizing and catastrophizing your situation," Brody says. Change your way of thinking. Instead of telling yourself, you won't be able to make ends meet, think, "I don't have as much money as I'd like, but I have $2,500 a month, and I can live on that."

Adds Sood: Be grateful for what you have, and if necessary, simplify your life. You might consider getting a smaller home — it's less expensive and easier to maintain. Consider getting a part-time job.

2. Health worries. Health problems and changes in insurance coverage can create enormous stress, Sood says.

Stress-reduction strategy: Take care of your body by eating a healthful diet, exercising regularly, getting enough sleep and getting preventive care, Sood says. Don't become overly focused on your health and spend all your time obsessing about it, he says. Play the hand you have. Embrace life's uncertainties by letting go of the uncontrollable, he says. "We have to accept the changes happening in the body and be grateful for the good health we have and the medical care we have received."

3. Caregiving. You may have to deal with the ill health of your spouse, a parent or other relative, Schulz says. Being a caregiver, particularly for illnesses such as Alzheimer's disease that involve cognitive impairment, has been shown to be extremely stressful. The stress tends to accumulate for long periods of time, years typically, and affects the health and functioning of the retired individual.

Stress-reduction strategy: The No. 1 strategy is getting help from others, including relatives, friends and professionals, Schulz says. You should become informed about the condition and how to deal with it. On the positive side, you know you are easing the suffering of someone close to you.

4. Relationship issues. Some people have not reconciled their differences with their spouse or learned to accept the other person for who they are, Sood says. Some retirees feel lonely and! isolated! after leaving colleagues, and others don't get to spend as much time with their kids and grandkids as they'd like, Brody adds.

Stress-reduction strategy: Learn to accept your spouse and others for who they are, Sood says. Work on forgiveness. You don't want to close your life with lots of hurts, he says. "The magic of retirement is having the time to nurture relationships."

One of the keys to interacting with kids and grandkids is give them space, and when you are with them try to help and support them with their daily chores, he says.

Adds Brody: Adult children have a lot going on in their lives. Being aware of that can be help you adjust your expectations so you don't end up nagging them or getting depressed over not seeing them enough.

5. Super-charged changes. This is a time of enormous change. You are leaving your job and friendships with colleagues and finding new things to do, Sood says.

Stress-reduction strategy: Realize that your brain's reward center likes variety, so give yourself a variety of experiences, Sood says. "Let your best friends not be the TV, refrigerator or couch. Let your best friends be real people, books and sports shoes."

Treat your first year in retirement as if you are "interning" to give yourself time to readjust and set new expectations, he says. Find meaning in new passions, including possibly using your work skills in a new job or volunteer work.

Brody says three keys to a successful retirement are finding a sense of purpose for yourself, structuring your day and replacing the social connections you lost when you retired. Also, if you can retire gradually, going to a half-time job for a year before fully retiring, it's easier to acclimate, he says.

Top 5 Construction Material Stocks To Watch For 2015

Nurture your spiritual values, which may mean developing a deeper connection with your faith, Sood says. "Live you! r life fu! lly, and say your 'I love yous' every day." Most importantly, do not postpone joy and do not bypass kindness."

Has Apple Taken a Vacation from Innovation?

Apple has always been about innovation and creation, but for the first time, Jon Markman of Markman Capital Insight, feels Apple's competitors may have taken the lead.

SPEAKER 1: Hello. My guest today is Jon Markman. Hi Jon, nice to see you again.

JON: Hi Nancy, great to be back.

SPEAKER 1: Yeah, well listen. I was reading one of your articles about Apple recently and obviously Carl Icahn just came out and tweeted several times about his new stake in Apple, but you didn’t seem to be such a fan of that. Can you elaborate on that?

JON: Well Icahn is trying to get Apple to go up. He’s got a very large stake for him. I think it’s a $1,000,000,000 stake and he wants them to improve their standing by issuing debt to buy back stock. You know that’s okay. I mean that’s shareholder friendly but it’s kind of a gimmick and I think that it distracts from what Apple should be doing, which is innovating and creating new products.

SPEAKER 1: What do you think? Are they actually innovating? There are rumors around that maybe a new iPhone is coming out. Maybe something a little more expensive and maybe something not so expensive.

JON: Well you know Apple really created the Smart Phone category with its iPhone. There were already good phones out like the Trio at that time from Palm, but they innovated and created that iPhone. They really created the musical device category with the iPod before that. They innovated and created the Tablet market, which is huge with the iPad, and then they spun off a smaller version of the iPad, the iPad Mini, all of which were great innovations and drove Apple Stock higher. Because they were scarce products they also had fantastic margins. In the past few years, Apple seems to have taken a vacation from innovation. The last two phones have been a disaster, both the hardware and on the software side. You can’t really take two years off in this market. In the meantime, their competitors have not stood still; particularly the Android operating system has gotten better and better. It’s taking more and more market share away from Apple. When you lose market share you also lose the opportunity to drive margins higher. Apple’s really finding itself in a very difficult spot right now. They need to catch up to the Android devices and then it needs to surpass them. It’s very hard to do that when you’re losing market share, so I think it’s got a really hard road ahead of it. I think people will be disappointed with it, the next iPhone. There won’t be anything that’s new enough to capture their interest. The next thing that people have on their minds for Apple is something called Apple TV. Nobody knows what this is. It’s like a snipe hunt.

SPEAKER 1: You never found a snipe?

JON: No one’s ever found a snipe and I don’t think anyone’s ever really going to find an Apple TV. The reason that Apple TV is so difficult, whatever it might be, is that they’re trying to find a new way of trying to help people have a new experience in watching television, but in the five years that we’ve been talking about Apple TV, TV has changed dramatically already without Apple. You know it’s already a lot easier to unbundle your cable by watching various shows online through Netflix. HBO and Showtime have also been great innovators, and so although Apple can come out with a new device, those incoming cable companies and the carriers are going to make it very difficult for them to capture any margin in doing so. I think people will be disappointed with that product.

SPEAKER 1: Do you think that they could possibly go the way of BlackBerry or RIM?

JON: You know nobody thought BlackBerry could go the way of BlackBerry. Nobody thought Palm could go the way of Palm. So could Apple implode? Of course it could. I don’t expect it but it certainly could.

SPEAKER 1: Thanks for joining me Jon.

JON: Thank you.

SPEAKER 1: Thanks for being with us on the Moneyshow.com Video Network.

Jon Markman on InvestorPlace More from InvestorPlace Media, LLC Has Apple Taken a Vacation from Innovation?   12 Breakthrough Tech Trends   The Fed Is the Dow's Master  

Keep more of your money: Mutual fund fees fall

NEW YORK (AP) — Good news for investors: We're keeping more of what's ours.

Mutual funds charged less to cover operational expenses last year, as a percentage of their total assets. It was the fourth straight year that the average expense ratio fell for stock mutual funds, according to separate reports from the Investment Company Institute and Morningstar. And it's not just stocks that have become cheaper for investors to own. Expense ratios have also dropped for bond and money-market mutual funds in recent years.

It's a win for investors because they get to keep more of their returns, and funds with low expenses have historically performed better than higher-cost rivals, says Russel Kinnel, director of manager research at Morningstar. That's because low-cost funds essentially have a head start in the race for returns: High-cost funds need to make more just to match the performance of their competitors once expenses are taken into account.

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It may seem like no fun to parse expense-ratio data when the difference from one fund to the next may be less than a quarter of a percentage point. "But it's something, and that advantage compounds over time and adds up to something meaningful," Kinnel says. Low costs are such a good predictor of success that Kinnel suggests investors look at a fund's expense ratio first when considering whether to purchase it.

Stock mutual funds had an average expense ratio of 0.74% last year, according to the Investment Company Institute. That means for every $10,000 in assets, a stock fund took $74 to cover expenses. That's down from $77 in 2012 and $100 a decade earlier. The expense ratio covers everything from analysts' salaries to the cost of mailing shareholder reports.

The expense ratio does not include every type of fee that an investor may pay. Some mutu! al funds charge a fee to investors when they purchase or sell shares, for example. It's called a "load" payment. These have also dropped in recent years: Average load fees paid by investors are down nearly 75% since 1990, according to the Investment Company Institute.

A big reason for last year's drop in expense ratios was how well the stock market performed. The Standard & Poor's 500 index returned 32.4%, including dividends, for its best year since 1997. The surging prices meant mutual funds suddenly had more assets. That gave funds a larger base over which to spread their expenses, many of which are fixed. Funds typically have policies that dictate they'll charge a lower fee rate once their total assets top a certain threshold.

Of course, the opposite can also happen. When stock prices fall, mutual funds find themselves with reduced assets, meaning their expense ratios will rise. That's what happened in 2009, when the stock market bottomed after the financial crisis, and the average expense ratio for stock funds rose to 0.87% from 0.83%.

All of this has helped build a greater appreciation among investors for keeping costs low. Of every $1 in net investment that flowed into mutual funds last year, 95 cents went into funds that were ranked in the bottom fifth of their category by cost. Compare that to 2001, when only 11 cents went to the cheapest funds, according to Morningstar.

Much of the drive toward low-cost funds is due to the growing popularity of index mutual funds. Instead of trying to beat the S&P 500 or another index, these funds try to merely match it. And they charge lower fees accordingly. The Vanguard Total International Stock Index fund (VGTSX) attracted $17.9 billion in net investment last year, for example, more than any other stock fund. It has an expense ratio of 0.22%, which Vanguard says is 82% lower than similar funds.

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For bond funds, the average expense ratio was 0.61% last year. Tha! t's flat ! from a year ago but down from 0.75% a decade earlier. Money-market funds saw their average expense ratio fall to 0.17% last year from 0.18% in 2012 and 0.42% in 2003.

Low expenses are particularly advantageous for bond funds given how low yields have dropped. Bond investors are getting relatively little interest income, but lower fees mean they can keep a larger portion of that. The 10-year Treasury note has a yield of 2.55%, for example. That's down from 3.36% five years ago and 4.76% a decade ago.

Bond funds with higher expense ratios could buy bonds with bigger yields, such as junk bonds, to compensate. But those carry a higher risk of default.

To be sure, not every corner of the market is seeing a similar trend. Specialized mutual funds tend to carry higher expense ratios. In the search for steadier or better returns, some funds "short" stocks, for example. That lets them profit when a stock's price falls. Other alternative mutual funds invest in futures or commodities, which can be expensive to do.

The Investment Company Institute includes such alternative funds in its "hybrid" category. It's the only group that saw its average expense ratio rise last year -- up to 0.80% from 0.79% a year earlier.

The Home Sellers Guide To Understanding Comparable Sales

One of the trickiest parts of the home selling process is selecting a list price that's just right. Not just any number will do: if you overprice your home, it will sit idle on the market, and if you underprice it, you miss out on cash and equity that could've been earned in the sale. This is when you need to think like a buyer, scoping out other homes that are for sale or have recently sold in your neighborhood. Hop on Trulia and enter your zip code to get familiar with what's out there – and maybe even swing by a few nearby open houses. Most importantly, work with your realtor to understand and analyze "the comps." They're the only way to truly determine an accurate list price for your home. Remember, this is one case where true value doesn't come from within, it's actually based on those around us.

In the meantime, take a look at Trulia Trulia's quick guide to comparable homes:

1.  Apples to Apples: Analyzing the comps entails some detective work. Obviously, your house isn't exactly like every other on the block. It can be far better – or far worse. You have to wade through and pick out comps that truly come closest to yours. Then make note of what similar homes have that your doesn't and what your house has that the comps lack? Consider these comparisons:

3 Stocks Spiking on Big Volume

DELAFIELD, Wis. (Stockpickr) -- Professional traders running mutual funds and hedge funds don't just look at a stock's price moves; they also track big changes in volume activity. Often when above-average volume moves into an equity, it precedes a large spike in volatility.

>>5 Hated Earnings Stocks You Should Love

Major moves in volume can signal unusual activity, such as insider buying or selling -- or buying or selling by "superinvestors."

Unusual volume can also be a major signal that hedge funds and momentum traders are piling into a stock ahead of a catalyst. These types of traders like to get in well before a large spike, so it's always a smart move to monitor unusual volume. That said, remember to combine trend and price action with unusual volume. Put them all together to help you decipher the next big trend for any stock.

>>5 Rocket Stocks Ready for Blastoff

With that in mind, let's take a look at several stocks rising on unusual volume recently.

On Assignment

On Assignment (ASGN) provides short- and long-term placement of contract, contract-to-hire and direct hire professionals in the U.S., Europe, Canada, China, Australia and New Zealand. This stock closed up 1.4% at $35.31 in Wednesday's trading session.

Wednesday's Volume: 1.15 million

Three-Month Average Volume: 386,568

Volume % Change: 188%

From a technical perspective, ASGN trended modestly higher here right above some near-term support levels at $34.27 to its 200-day moving average of $33.53 with above-average volume. This spike higher on Wednesday is starting to push shares of ASGN within range of triggering a near-term breakout trade. That trade will hit if ASGN manages to take out its 50-day moving average of $36.04 to some more near-term overhead resistance at $36.95 with high volume.

Traders should now look for long-biased trades in ASGN as long as it's trending above some key near-term support levels at $34.27 or above its 200-day a $33.53 and then once it sustains a move or close above those breakout levels with volume that's near or above 386,568 shares. If that breakout hits soon, then ASGN will set up to re-test or possibly take out its next major overhead resistance levels at $38.05 to $38.18. Any high-volume move above those levels will then give ASGN a chance to re-test or possibly take out its 52-week high at $39.86.

ARM Holdings

ARM Holdings (ARMH), together with its subsidiaries, designs microprocessors, physical intellectual property and related technology and software. This stock closed up 3.5% at $44.35 in Wednesday's trading session.

Wednesday's Volume: 5.62 million

Three-Month Average Volume: 1.54 million

Volume % Change: 250%

From a technical perspective, ARMH ripped higher here right above its recent low of $42.27 with strong upside volume flows. This stock has been downtrending badly for the last month and change, with shares moving lower from its high of $52.71 to its low of $42.27. During that downtrend, shares of ARMH have been making mostly lower highs and lower lows, which is bearish technical price action. That said, shares of ARMH have now started to bounce off that $42.27 low and it looks ready to reverse its recent downtrend and enter a new uptrend. Market players should now look for a continuation move higher in the short-term if ARMH manages to take out Wednesday's high of $44.40 with strong upside volume flows.

Traders should now look for long-biased trades in ARMH as long as it's trending above Wednesday's low of $43.38 or above its recent low of $42.27 and then once it sustains a move or close above $44.40 with volume that's near or above 1.54 million shares. If we get that move soon, then ARMH will set up to re-test or possibly take out its next major overhead resistance levels at $46.54 to its 50-day moving average of $47.49. Any high-volume move above those levels will then give ARMH a chance to tag its next major overhead resistance levels at $49 to $50.27.

TJX Companies

TJX Companies (TJX) operates as an off-price apparel and home fashions retailer in the U.S. and internationally. This stock closed up 4.9% at $56.60 in Wednesday's trading session.

Wednesday's Volume: 11.88 million

Three-Month Average Volume: 3.62 million

Volume % Change: 199%

From a technical perspective, TJX bounced sharply higher here right above its recent low of $53.87 with heavy upside volume. This move is quickly pushing shares of TJX within range of triggering a big breakout trade. That trade will hit if TJX manages to take out its recent gap-down-day high of $56.90 with high volume.

Traders should now look for long-biased trades in TJX as long as it's trending above Wednesday's low of $54.31 and then once it sustains a move or close above $56.90 with volume that's near or above 3.62 million shares. If that breakout hits soon, then TJX will set up to re-fill some of its recent gap-down-day zone that started just above $58.

To see more stocks rising on unusual volume, check out the Stocks Rising on Unusual Volume portfolio on Stockpickr.

-- Written by Roberto Pedone in Delafield, Wis.

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Follow Stockpickr on Twitter and become a fan on Facebook.

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

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

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

Should You Jump on the AT&T-DirecTV Merger?

Popular Posts: 2 Downtrodden Stocks to Buy Today3 High-Yielders That Make MLPs a SnapShould You Jump on the AT&T-DirecTV Merger? Recent Posts: Should You Jump on the AT&T-DirecTV Merger? 2 Downtrodden Stocks to Buy Today 3 High-Yielders That Make MLPs a Snap View All Posts

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Sometimes the most profitable trend changes in the investment world take place while almost everybody is looking the other way. I’m beginning to think that’s what may be happening right now with the merger of AT&T (T) and DirecTV (DTV).

For more than a decade (really, all the way back to the collapse of the technology-media-telecom bubble in 2000), telecoms  like T and DTV have been market wallflowers. Most have paid decent dividends, but price gains have been singularly lacking, including for T stock and DTV stock.

For good reasons, too. The old-fashioned wireline business has been shrinking inexorably. While broadband Internet and TV have provided new sources of revenue, the cable companies are fighting the telcos for every scrap of this business. Price cutting is pinching the telcos’ last fat profit center — wireless.

And yet, we’ve had two pieces of news in the past week suggesting that their fortunes may be turning for the better.

First, and most dramatic, AT&T has launched a $48.5 billion takeover bid for satellite TV provider DirecTV. Most of the Wall Street commentary around this deal has centered on the benefits to AT&T of having a nationwide video footprint to go with T’s well-established position in cellular (essentially, the company enjoys a duopoly with Verizon (VZ)).

I agree that the merger will strengthen AT&T’s hand from a marketing standpoint. However, I’m even more impressed with the financial engineering that went into the transaction.

In essence, AT&T is taking advantage of today’s low borrowing costs to buy a block of assets that will generate cash flow far in excess of 1.) future capital spending at DirecTV and 2.) the interest expense of the deal. Result: AT&T will have more cash left over for dividends and buybacks of T stock.

Readers who have been with me awhile know that I’ve expressed concern that T’s dividend isn’t as well covered out of free cash flow as Verizon’s is. This transaction takes a large step toward fixing that problem. By 2016, AT&T’s free cash flow should outweigh the dividend by a comfortable 1.8X.

Not Picking Up the Call for T Stock

Even though I applaud the DirecTV deal (and yes, I do own AT&T in personal accounts), I must admit that Verizon remains my favorite domestic telco. I’ve explained the reasons before: dominant market share in wireless; enormous free cash flow covering the dividend an estimated 2.7 times this year.

But I’ve got another reason now, which you may find more persuasive than all my previous arguments. Last Friday, Warren Buffett’s Berkshire Hathaway (NYSE: BRK.A) disclosed that it had built an 11-million-share stake in VZ as of March 31. The shares are currently valued at around $535 million.

Most likely, it was one of Buffett’s lieutenants, Todd Combs or Ted Weschler, rather than the master himself, who decided to purchase the stock. Nonetheless, we know that both of these guys are excellent stock pickers — good enough to get hired by Buffett to run multi-billion-dollar chunks of Berkshire’s portfolio.

To me, that’s all the stamp of approval I need to take a long look at Verizon stock.

Richard Band's Profitable Investing advisory service helps retirement savers outperform the market without losing a minute of sleep along the way. His straightforward style and low-risk value approach has won nine Best Financial Advisory awards from the Specialized Information Publishers Foundation.

3 Stocks Breaking Out on Big Volume

DELAFIELD, Wis. (Stockpickr) -- Professional traders running mutual funds and hedge funds don't just look at a stock's price moves; they also track big changes in volume activity. Often when above-average volume moves into an equity, it precedes a large spike in volatility.

>>4 Huge Stocks on Traders' Radars

Major moves in volume can signal unusual activity, such as insider buying or selling -- or buying or selling by "superinvestors."

Unusual volume can also be a major signal that hedge funds and momentum traders are piling into a stock ahead of a catalyst. These types of traders like to get in well before a large spike, so it's always a smart move to monitor unusual volume. That said, remember to combine trend and price action with unusual volume. Put them all together to help you decipher the next big trend for any stock.

>>Sell These 5 Toxic Stocks Before It's Too Late

With that in mind, let's take a look at several stocks rising on unusual volume recently.

Maxim Integrated Products

Maxim Integrated Products (MXIM) designs, develops, manufactures, and markets various linear and mixed-signal integrated circuits worldwide. This stock closed up 4% to $33.53 in Monday's trading session.

Monday's Volume: 5.42 million

Three-Month Average Volume: 2.55 million

Volume % Change: 125%

From a technical perspective, MXIM soared higher here right off its 50-day moving average of $32.34 with strong upside volume. This move is quickly pushing shares of MXIM within range of triggering a major breakout trade. That trade will hit if MXIM manages to take out some near-term overhead resistance levels at $33.70 to its 52-week high at $33.78 with high volume.

Traders should now look for long-biased trades in MXIM as long as it's trending above its 50-day at $32.34 or above more near-term support at $31.30 and then once it sustains a move or close above those breakout levels with volume that hits near or above 2.55 million shares. If that breakout triggers soon, then MXIM will set up to enter new 52-week-high territory above $33.78, which is bullish technical price action. Some possible upside targets off that breakout are $40 to $45.

Bluebird Bio

Bluebird Bio (BLUE), a clinical-stage biotechnology company, focuses on developing gene therapies for severe genetic and orphan diseases. This stock closed up 6.1% to $26.73 in Monday's trading session.

Monday's Volume: 485,000

Three-Month Average Volume: 228,857

Volume % Change: 119%

From a technical perspective, BLUE ripped sharply higher here with above-average volume. This stock has been uptrending strong for the last few weeks, with shares moving higher from its low of $17.40 to its intraday high of $27.18. During that uptrend, shares of BLUE have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of BLUE within range of triggering a major breakout trade. That trade will hit if BLUE manages to take out some key overhead resistance levels at $28.08 to $28.98 with high volume.

Traders should now look for long-biased trades in BLUE as long as it's trending above Monday's low of $24.79 and then once it sustains a move or close above those breakout levels with volume that hits near or above 228,857 shares. If that breakout gets underway soon, then BLUE will set up to re-test or possibly take out its next major overhead resistance levels at $32 to $34.

Grifols

Grifols (GRFS), a specialty biopharmaceutical company, develops, manufactures, and distributes a range of plasma derivative products primarily in the European Union, Spain, the U.S., Canada, and internationally. This stock closed up 3.2% at $42.12 in Monday's trading session.

Monday's Volume: 1.10 million

Three-Month Average Volume: 622,295

Volume % Change: 89%

From a technical perspective, GRFS spiked notably higher here right off its 50-day moving average of $40.71 with above-average volume. This spike higher on Monday is quickly pushing shares of GRFS within range of triggering a major breakout trade. That trade will hit if GRFS manages to take out some key overhead resistance levels at $42.28 to $42.87 and then once it clears its 52-week high at $43.45 with high volume.

Traders should now look for long-biased trades in GRFS as long as it's trending above its 50-day at $40.71 or above more near-term support at $39.35 and then once it sustains a move or close above those breakout levels with volume that hits near or above 622,295 shares. If that breakout materializes soon, then GRFS will set up to enter new 52-week-high territory above $43.45, which is bullish technical price action. Some possible upside targets off that move are $48 to $50.

To see more stocks rising on unusual volume, check out the Stocks Rising on Unusual Volume portfolio on Stockpickr.

-- Written by Roberto Pedone in Delafield, Wis.

RELATED LINKS:

>>5 Stocks Set to Soar on Bullish Earnings

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Follow Stockpickr on Twitter and become a fan on Facebook.

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

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

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

Chattanooga's super-fast publicly owned Internet

Chattanooga's Electric Power Board has automatically upgraded connection speeds for customers at no charge each of the past four years.

NEW YORK (CNNMoney) Chattanooga, Tenn., may not be the first place that springs to mind when it comes to cutting-edge technology. But thanks to its ultra-high-speed Internet, the city has established itself as a center for innovation -- and an encouraging example for those frustrated with slow speeds and high costs from private broadband providers.

Chattanooga rolled out a fiber-optic network a few years ago that now offers speeds of up to 1000 Megabits per second, or 1 gigabit, for just $70 a month. A cheaper 100 Megabit plan costs $58 per month. Even the slower plan is still light-years ahead of the average U.S. connection speed, which stood at 9.8 megabits per second as of late last year, according to Akamai Technologies.

"It's really altered how we think of ourselves as a city," said Chattanooga Mayor Andy Berke. "We're a midsized, southern city -- for us to be at the front of the technological curve rather than at the tail end is a real achievement."

As federal officials find themselves at the center of controversy over net neutrality and the regulation of private Internet service providers like Comcast (CMCSA, Fortune 500) and Time Warner Cable (TWC, Fortune 500), Chattanooga offers an alternative model for keeping people connected. A city-owned agency, the Electric Power Board, runs its own network, offering higher-speed service than any of its private-sector competitors can manage.

The problem with fiber networks is that they're hugely expensive to install and maintain, requiring operators to lay new wiring underground and link it to individual homes. Since 1996, cable operators have invested $210 billion in broadband networks and other infrast! ructure, according to the National Cable and Telecommunications Association.

Since there's little competition in the broadband industry, some industry experts believe that there's little incentive for broadband providers to dramatically beef up their bandwidth and drastically improve their infrastructure.

Chattanooga's project started in 2008 with the goal of building a "smart" power grid for the city, capable of rerouting electricity on the fly to prevent outages in addition to carrying Internet traffic.

"It just didn't look like the private sector was going to bring true, high-speed connectivity to this market," EPB spokeswoman Danna Bailey said.

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The city had to contend with lawsuits from Comcast and local cable operators as it worked to get the network up and running. But aided by an $111 million stimulus grant from the Department of Energy, the service was up and running by September 2009. The EPB currently has around 5,000 business customers along with 57,540 households, which have access to "triple play" bundles of video, phone and Internet service just like they would from a private provider.

"Deploying a network for telecommunications is not fundamentally different from deploying a network for power," said Benoit Felten, a broadband expert with Diffraction Analysis. "Chattanooga is the prime example of that, and it's absolutely worked."

The Federal Communications Commission recognizes the potential of muncipality-run broadband, saying earlier this year that it will push for the repeal of state and local laws supported by the cable industry that make it harder for cities to set up their own networks.

Chattanooga officials say the network has helped spark a burgeoning local tech scene and the relocation of a number of businesses, drawn by both the fast Internet and the reli! ability o! ffered by the smart grid.

Hunter Lindsay, CEO of IT services firm Claris Networks, said he moved his 85-person company from Knoxville to Chattanooga "just because of the network."

"It's logical for every city to do it, but that doesn't mean it's going to happen," Lindsay said.

Berke said Chattanooga regularly receives inquiries from other cities both in the U.S. and internationally that are interested in setting up their own networks. The city recently set up a task force to figure out how to bring the network to poorer families and make sure the community gains the maximum benefit.

"People understand that high-speed Internet access is quickly becoming a national infrastructure issue just like the highways were in the 1950s," Berke said. "If the private sector is unable to provide that kind of bandwidth because of the steep infrastructure investment, then just like highways in the 1950s, the government has to consider providing that support."

Here’s More on Apple’s Long-Awaited Gadget

Hot Telecom Stocks To Invest In Right Now

The global tech giant Apple (AAPL) is about to launch the most awaited smartphone of the season, the iPhone 6, and the long wait of the gizmo geeks shall end by this September. The upcoming iPhone is expected to have much more new and interesting features, thus attracting the attention of gadget addicts.

Reality or Rumor?

The new iPhone is predicted to have a larger display, in the range of 4.8 inches to 5.5 inches, with 1136x640 pixel resolution. In fact, there is lot of buzz that this year too Apple might launch more than one iPhone just like it did last year in the case of iPhone 5S and iPhone 5C.

The price range of the device is not yet confirmed but it is guessed that the contract-free version might cost around $549 for the 16GB, and $649 for 32GB. Rumors have it that the iPhone will have iOS8 which the Cupertino company is expected to release at the Worldwide Developer Conference scheduled in June. The latest feature in iPhone 6 will be the NFC chip which is a big attraction point for several buyers that will help make things such as mobile payments or making phone calls much easier.

Apple has always provided good storage internal capacity in the iPhones which till now has had a maximum limit of up to 64GB. But this time it has broken all records and set the limit up to 128GB expandable memory, just like that for iPad Air. This new limit for the storage is a boon for music and video addicts who may download and capture more than before.

What's New?

The introduction of sapphire screen in the new iPhone 6 is till now the best feature used. The screen is manufactured by melting aluminum oxide in specialized furnaces. When liquid aluminum oxide is allowed to cool slowly, it forms a large crystal. The sapphire crystal is cut out to form screens. Apple has signed a contract of $578 million with GT Advanced, the sapphire screen company. Rumor goes around that solar charging screens might be used in iPhone 6, but this looks far-fetched as the technology is yet to be released.

Apple is integrating heart rate and blood pressure monitors in the earpods of the headphone. Biggest rival Samsung (SSNLF) had released heart beat monitors at the back of their new smartphone Galaxy S5. It might also provide a slot for expandable storage. Flexible screen and wireless charging are the new features which the rival companies have already adopted but we are not sure yet that these feature will be found in the iPhone 6 or not.

Conclusion

The new iPhone will definitely have new and exciting features that will surely grab the attention of people worldwide and Apple loyalists are eagerly waiting for the launch of this new phone. With distinctive features such as the sapphire screen and the 128 GB memory it is sure to beat the records of all the other smartphones. Analysts are even predicting that the launch of the device will have a positive effect on the share price.

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Latest Guru Picks	Value Strategies
Warren Buffett Portfolio	Ben Graham Net-Net
Real Time Picks	Buffett-Munger Screener
Aggregated Portfolio	Undervalued Predictable
ETFs, Options	Low P/S Companies
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52-Week Lows	Interactive Charts
Model Portfolios	DCF Calculator
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Short Sellers Squeezed Out of Keurig Green Mountain

What’s the best way to fend off heavy short interest in a company’s stock? Get Coca-Cola Co.(KO) on your side.

That’s essentially what happened to Keurig Green Mountain Inc.(GMCR) The one-time target of short sellers has seen many of its skeptics abandon their bets against the stock, which has surged 58% this year.

Keurig shares rallied another 7.6% to $119.07 Tuesday after Coke, the world’s largest beverage company, said it would increase its stake in the coffee company to 16% from 10%. The increased Coke stake has given bullish Green Mountain investors confidence in the company’s long-term trajectory, while the investors betting against, or shorting, the stock continue to get squeezed out of their positions.

Among the most prominent investors betting against Keurig has been Greenlight Capital’s David Einhorn, who raised accounting questions about the company in a high-profile attack in 2011. In a quarterly letter to investors last month, Mr. Einhorn confirmed he was still short Keurig, noting it was the firm’s “only significant loser.”

A representative from Greenlight wasn’t immediately available for comment.

As of Monday, the percentage of Keurig shares on loan—a proxy for short-selling activity—dropped to about 3.9% of shares outstanding, according to securities-financing tracker Markit. That's down from as much as 22% in November. By comparison, the average stock in the S&P 500 has about 2.1% of its shares on loan.

Markit

Andrew Laird, an analyst at Markit, says Green Mountain’s trading is now more in-line with the average short interest of a stock in the small-cap Russell 2000, which is about 4.3% of shares outstanding.

Short sellers borrow shares to sell them in hopes of buying them back cheaper at a later date, aiming to profit from a price decline.

Coke said Tuesday that it would increase its stake in Keurig as it deepens its exposure to coffee and countertop carbonation. The move comes after it signed an agreement in February to sell its cold drinks through an at-home beverage system being developed by the fast-growing maker of the Keurig single-serve coffee maker.

Under February’s partnership, Coke acquired a 10% stake in Keurig for $1.25 billion and the option to increase its stake to as much as 16% through open-market purchases of Keurig’s common stock within 36 months. In a statement Tuesday, Coke said it had entered an accelerated purchase agreement with Credit Suisse(CSGN.VX) to acquire shares to reach that level.

Based on Keurig’s closing share price Monday of $110.71, Coke’s additional 6% stake purchase would cost roughly $1.07 billion.

–Mike Esterl contributed to this report.

Fossil, Take-Two shares fall on weak outlooks

Bloomberg

SAN FRANCISCO (MarketWatch) — Fossil Group Inc. shares declined in the extended session Tuesday after the fashion-accessories company followed up a quarterly earnings beat with a poor outlook for the current quarter.

/quotes/zigman/17693969/delayed/quotes/nls/fosl FOSL 111.45, -0.63, -0.56% Fossil 12-month share price

Shares of Fossil (FOSL)  fell 5.3% to $105.50 on moderate volume after the company forecast second-quarter earnings of 90 cents to 97 cents a share, while analysts surveyed by FactSet expect $1.16 a share.

Fossil reported first-quarter earnings of $1.22 a share on revenue of $776.5 million. Analysts had forecast a consensus of $1.18 a share on revenue of $771.6 million.

Stock in Take-Two Interactive Software Inc. (TTWO)  declined 4.4% to $19.72 on moderate volume as investors also weighed a quarterly earnings beat with a poor outlook.

The videogame publisher, best known for the "Grand Theft Auto" franchise from Rockstar Games, forecast an adjusted loss of 35 cents to 25 cents on revenue of $120 million to $125 million for the fiscal first quarter, and adjusted earnings of 80 cents to $1.05 a share on revenue of $1.35 billion to $1.45 billion for fiscal 2015.

/quotes/zigman/62747/delayed/quotes/nls/ttwo TTWO 20.63, -0.04, -0.19% Take-Two 12-month share price

Analysts estimate a first-quarter loss of 12 cents a share on revenue of $209.6 million, and adjusted earnings of $1.06 a share on revenue of $1.36 billion for the year.

Meanwhile, Take-Two reported adjusted fiscal fourth-quarter earnings of 21 cents a share on revenue of $233.2 million, while analysts had forecast 11 cents a share on revenue of $202.6 million.

Shares of AOL Inc. (AOL)  were unchanged after-hours, following a decline of 3.1% to close at $36.81 in the regular session. After the close Tuesday, the New York Stock Exchange said that trades during a two-minute window before the close, when AOL stock had dropped sharply, would be cancelled.

Shares of YuMe Inc. (YUME) fell 6.2% to $6.06 on moderate volume after the video-ad company announced that Chief Financial Officer Timothy Laehy will step down May 23 and be succeeded by vice president of finance Tony Carvalho on an interim basis. YuMe also reported a first-quarter loss of 16 cents a share on revenue of $37.3 million, while analysts were looking for a 16-cent loss on revenue of $35.4 million.

Arotech Corp. (ARTX)  shares rose 10% to $3.70 on moderate volume after the defense and security-products company reported a first-quarter profit of 5 cents a share on revenue of $22.4 million. The one analyst who covers Arotech was forecasting 2 cents a share on revenue of $21.3 million, according to FactSet.

Shares of LoJack Corp. (LOJN)  surged 20% to $5.30 on moderate volume after the car-security-system company said an arbitration panel dismissed claims by a Brazilian licensee over a contract dispute.

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Why FireEye, Inc. Shares Skyrocketed Today

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of FireEye (NASDAQ: FEYE  ) jumped nearly 11% Monday, then settled to close up around 8% leading into the cyber-security specialist's on-campus analyst open house this afternoon.

So what: Disappointing guidance has caused FireEye shares to plummet following each of its past two quarterly reports -- including an 11% drop in February, and a 22% plunge last Wednesday -- and both results were largely influenced by significantly increased chunks of cash dedicated to R&D and sales and marketing. Even after today's jump, the stock still sits more than 70% below its March highs.

But FireEye's open house today could be a solid first step to providing more clarity to analysts on why it's missing their proposed marks. To be sure, FireEye stated the afternoon's events would include product demonstrations, Q&A with senior management, and updates on their "vision, strategy and operations."

Now what: Of course, that doesn't change the fact FireEye has made a habit of falling significantly short of Wall Street's expectations. But if their efforts today can at least help analysts understand why that's the case and successfully help them pitch a longer-term outlook, perhaps the broader investing public will be more forgiving of the company -- especially considering its underlying stock trades at a lofty 17 times trailing 12-month sales. For now, though, and despite the big pullback since the last time I opted to stay on the sidelines, I'm just fine keeping FireEye on my watch list.

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In the meantime, there are plenty of other promising stocks out there. To be sure, if you thought the iPod, the iPhone, and the iPad were amazing, just wait until you see this. One hundred of Apple's top engineers are busy building one in a secret lab. And an ABI Research report predicts 485 million of them could be sold over the next decade. But you can invest in it right now, for just a fraction of the price of Apple stock. Click here to get the full story in this eye-opening new report.

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Get a Tax Break on Child-Care Costs

Can I take the child-care tax credit for the cost of summer camp?

If it is a day camp, not an overnight camp, then the cost of camp can count toward the child-care credit. The camp can be both over school vacations and during the summer. To qualify, your child must be younger than 13 and must attend camp while you and your spouse work or look for work (one spouse can be a full-time student while the other works). For parents who are divorced or separated, the custodial parent is usually the one who can claim the credit.

SEE ALSO: Tax Breaks for Child-Care Expenses

The cost of a nanny, babysitter, day care or preschool also counts if you use them so you can work. School tuition drops off the list of qualifying expenses once your child reaches kindergarten, but before-care and after-care costs do qualify.

There is no maximum income cut-off to qualify, but the smaller your income, the larger the credit. You can count up to $3,000 in child-care expenses for one child or up to $6,000 for two or more children. Families earning less than $15,000 can claim a credit for up to 35% of those expenses. The size of the credit gradually decreases as income rises. For instance, families earning more than $43,000 can claim a credit for up to 20% of eligible costs. To translate those percentages into dollars, families with one qualifying child can get a credit of $600 to $1,050, depending on their income; families with two or more children can get a credit of $1,200 to $2,100. This is a credit, not a deduction, so it lowers your tax liability dollar for dollar.

To claim the credit, file Form 2441 with your tax return and include the employer-identification number of the camp or the Social Security number of the care provider. Keep copies of the bills you pay to the camp and the employer ID number in your tax files so you have them when you're ready to file. For more information, see IRS Publication 503, Child and Dependent Care Expenses.

If you have a dependent-care flexible-spending account at work, you could be better off using money from that account rather than taking the child-care credit, especially if you're in a higher tax bracket, because the money in the FSA bypasses federal taxes as well as Social Security taxes. The rules for qualifying are the same as they are for the child-care credit -- the child must be younger than 13 and must attend the camp or receive care while you work.

You can't use money from the dependent-care FSA and take the child-care credit for the same expenses, but if you have two or more children and you've used $5,000 from your FSA, you can take the tax credit for an extra $1,000 in child-care expenses, which can cut your taxes by an extra $200 if you qualify for the 20% credit.

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

The Heavy Price of Stockpicking

The tab for speculating in the stock market is about 4% a year, according to the calculation of one influential wealth manager. That’s a harsh penalty to pay when the S&P 500’s average annual result over the past 15 years is barely above that amount, at 4.28%.

Eric Nelson of Servo Wealth Management goes through the grim numbers in his July newsletter to clients.

The Oklahoma City-based registered investment advisor and Dimensional Fund Advisors loyalist starts his analysis at the professional money manager level, arguing that their performance as measured against indexes shows they lack market-beating skill.

Unlike top athletes or surgeons who demonstrate superior abilities, Nelson’s scorecard reveals that just 20% of fund managers beat their index from 2008 to 2012 and that the number who did so in most categories closely matched the number of mutual funds that were outright closed “due to horrendous underperformance.”

For example, 24.6% of active large-cap funds beat their index during that period, while 27.7% of active large-cap funds were shut down. The category that exhibited the least correspondence was not to the credit of professional managers: Just 9.6% of active short-term bond funds beat their index—far less than the 21.7% of such funds that closed during that period.

Nelson attributes manager selection to a Lake Wobegon mentality that assumes their manager is better than average. Yet he argues that people select their better-than-average managers based on past performance that doesn't persist.

Nelson cites data from Standard & Poor's showing the performance of the top managers from 2003 to 2007 in the subsequent five-year period from 2008 to 2012. Just 24.1% of top quartile managers remained in the top quartile, whereas 19.3% fell to the second quartile, 20.3% to the third quartile and 23.1 dropped to the last quartile; the missing 13.3% lost their jobs as their funds were shut down.

The wealth manager concludes: “So even when narrowing the search for a professional active manager to only those who have previously produced the best results, we still find the chance of future index-beating returns is no better than choosing at random (by chance, we’d expect to have 1/4 odds of landing in each of the four quartiles, and a bit less when we consider the odds of disappearing completely).”

Nelson notes there are actually greater odds (nearly 37%) of a top fund falling to the bottom quartile or disappearing than remaining in the top quartile (24%).

The professional advisor emphasizes that this poor performance emanates from people with chartered financial analyst (CFA) designation and Ivy League MBAs.

“If they can’t get it right," he asks, "what is the chance that a do-it-yourself investor running a Charles Schwab or Morningstar stock screener for a few hours in the evening or on the weekends will perform better?”

Drilling down further, Nelson next takes a page out of John Bogle’s book, literally, and considers both the underperformance of active managers and bad investor behavior.

Bogle’s The Clash of the Cultures shows that large-cap funds returned 4.1% to investors from 1997 to 2011, compared with 5.4% for their S&P 500 benchmark. While the numbers are both small, Nelson points out that that means 37% less wealth over 15 years for active fund investors, and 72% less wealth over the same time period compared to the wealth managers’ clients invested in his favorite DFA US Large Value Fund (DFLVX).

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“But even this dismal result is too generous,” Nelson says, since naughty investors typically dump poor-performing funds for those with recent good performance, which subsequently perform poorly, which “amplifies the return deficit.”

Citing Bogle again, Nelson shows that investor returns trail fund returns by nearly 2% on average.

“So between poor professional management and bad investor behavior, the total cost speculators pay is almost 4% per year!” Nelson says in summary, calling on investors to save their wealth through the discipline of a fee-only investment advisor.

---

Check out Your Move, Bogleheads: Advisor Finds DFA’s Returns Trump Vanguard’s.

Buyers turn up noses at big hybrid cars, SUVs

One of the auto industry's more interesting experiments is getting a thumbs down from buyers of big, costly cars and SUVs.

Automakers are mostly pulling back from offering gas-saving hybrids in their otherwise most gas-thirsty vehicles. So few were being purchased that automakers are rethinking whether it's worth engineering and offering them.

The latest pullback comes from General Motors, which has dropped the hybrid versions for the new generation of its Cadillac Escalade, Chevrolet Tahoe and GMC Yukon SUVs.

Too few customers were interested in the Escalade version, even though the hybrid delivered 21 miles per gallon in a mix of city and highway driving, says David Schiavone, Escalade's marketing manager. That was up from a 16 combined rating for the non-hybrid, a 31% boost.

"No one bought them — and they were great," he says.

Likewise, Mercedes-Benz has pulled the plug on a hybrid version of its full-size S Class sedan because there were too few buyers. But spokesman Christian Bokich says the brand isn't giving up. A plug-in hybrid version of the redesigned S Class sedans will be offered next year. "The plug-in makes it a spicier product to consider," he says.

Lexus sold only nine hybrid models of its big LS sedan last month, only about 1% of the 706 LS sedans sold overall. The big issue is cost. The hybrid version can add $6,000 or more to the price of the LS, says Bill Kwong, a Lexus spokesman. By contrast, other Lexus models, where the added expense isn't as great, such as the ES midsize sedan, sell about one of four as hybrids.

Hybrids in luxury vehicles make "a very expensive car even more expensive," says John O'Dell, a senior editor for fuel efficiency and green car for Edmunds.com. "We're not at the point where people are lining up to say, 'I'll spend more money to save the environment or to cut oil use.' "

Some brands, however, are plowing forward. Infiniti is offering a hybrid version of its 2014 QX60, a full-size, three-row luxury SUV. Abou! t 10% of buyers are choosing the $3,000 option, says spokesman Kyle Bazemore. He says that's not just because of fuel economy, but because the hybrid feels just as powerful. "It's extremely similar in power to our V-6, but it gets four-cylinder fuel economy."

Putting hybrids in large vehicles was considered a great idea a few years ago because on a percentage basis, the fuel economy and oil savings were higher. Also, the vehicles are larger, so it's easier to accommodate the battery pack without losing a lot of people and cargo space. The hybrid Chevy Tahoe won the Green Car of the Year Award in 2008.

Ron Cogan, publisher of the Green Car Journal, which hands out the award, says he's "sad" to see the big hybrids going away, but he thinks automakers will have other gas-saving strategies for large vehicles that will make up the difference. "I'm less sad if they have a better approach," he says

What Stock Picker’s Market!

The term “stock picker’s market” really gets some investors going. It gives them the false hope that they can beat the broader stock market by carefully buying the right stocks. The end result is often misery.

Decades ago, William Sharpe warned, “Properly measured, the average actively managed dollar must underperform the average passively managed dollar.” Was he right?

Charlie Billelo at Pension Partners put it this way: “In a relentless up-trending market, investors become highly confident in their ability to pick stocks, naturally calling it a ‘stock picker’s market.’ After all, any stock they pick is going up and to the right. 

“We saw the most extreme example of this in 2013, which set a record in terms of breadth with 93% of stocks in the S&P 500 finishing positive on the year. Never mind the fact that a blindfolded monkey throwing darts was likely to pick a winning stock last year; most investors came out of 2013 believing they were the next Warren Buffett,” Billelo explained.

What about just buying and holding a portfolio of individual blue chip stocks? Surely, this is the easiest and smartest way to outperform, isn’t it?

Putting this theory to test, I examined the five-year track record of all 30 stocks within the Dow Jones Industrial Average and here’s what I found: A pathetic 67% of Dow stocks (20 of them) have failed to beat their peer industry sector and the corresponding passive sector ETF (from 4/28/09 to 4/28/14)

The results were particularly heinous for stock pickers in the technology sector.  Every single Dow component in the tech arena, from Intel to Microsoft, lagged the Technology Sector SPDR ETF (XLK). Rather than trying to pick themselves to glory and riches, technology investors would’ve been better off with a passively managed tech fund.  

With the S&P 500 SPDR ETF (SPY) up over 100% in the same five-year span as my mini-study, most stock pickers, as my sample shows still lagged.

It’s one thing to underperform during a bad market, but significant underperformance when stocks are riding high is a mortal sin. Unfortunately, the investing public is good at it.

The average investor is a notoriously poor market timer and an equally bad stock picker. Most of them would be better off having just invested in diversified basket of stocks via an index fund or ETF.

For investors and the advisors who serve them, there are plenty of great ETFs to choose from when it comes to buying blue chips in a low-cost, tax-friendly way. Look no further than the Vanguard Mega Cap ETF (MGC), as one example.  

Even during a bull market, it’s never really a “stock picker’s market,” because the typical stock picker loses money versus the market.

In the end, most investors should avoid the temptation to hand pick stocks with anything other than play money.