Non-Stop: S&P 500 Finishes February at Record High

In Non-Stop, Liam Neeson plays an air marshal who must stop a string of murders on a plane–when everyone thinks he’s the one doing the killing. Reviews have been mixed–the thriller has a 57% rating on Rotten Tomatoes–but the film is set to earn some $25 million in its first weekend of release in the U.S. and continue Neeson’s string of successes–some big, some small. Taken 2, for instance, raked in $376 million at the global box office, while the Grey pulled in just $77.3 million but cost only $25 million to make.

Myles Aronowitz

The stock market has that non-stop feeling going for it as well. Sure 2013 was a blockbuster by any standards, but even 2014 is looking OK following some early volatility. The S&P 500 gained 4.3% to 1,859.45 in February, closing the month at a record high. That 4.3% gain was the best February performance since 1998. The Dow Jones Industrial Average gained rose 4% to 16,321.71 in February, but still finds itself down 1.5% on the year.

The Dow got a boost from Walt Disney (DIS), which rode the success of Frozen to an 11% February gain, while E. I. du Pont de Nemours (DD), rose 9.2%, while Merck (MRK) advanced 7.6%, Nike (NKE) gained 7.5% and American Express advanced (AXP) 7.4%, as investors bet on its ability to tap small-businesses.

What explains the stellar February run? How about the weather? It’s allowed investors to look past bad economic news, and even give a pass to some companies. It also helps that Janet Yellen has left enough wiggle room in her commentary to let investors imagine that continued tapering is not a given.

Deutsche Bank’s David Bianco and team consider just how expensive the S&P 500 has become:

At 1850, the S&P 500 is trading at 16.9x trailing and 15.6x forward EPS; the trailing PE is 1 point higher than its average since 1960 and the forward PE is 1.5 points higher. Current PEs are full but fair. Further PE expansion requires that long-term real interest rates climb but plateau below history's average (still uncertain).

JPMorgan’s Thomas Lee suggests that the individual investor have returned to the market–and could give it a boost. He explains:

Skeptics have argued to us that individual investors, who have pulled more than $345b from equities since 2007, are not likely to return to markets for years, maybe decades. We disagree—investors are likely to move into assets that generate strong returns…E*TRADE (ETFC) provided some evidence that this is already under way…DARTs (daily average revenue trades) rose in 2013 to 151k, after declining steadily since 2009. In fact, the company noted that in January DARTs rose to 196k, the highest since well prior to 2009. This reengagement by individual investors, we believe, is a positive and is naturally supportive of improving valuations and liquidity for stocks.

Non-stop, indeed.

Credit Suisse to junior bankers: Lighten up (a little)

Credit Suisse wants junior bankers in the Americas to cut down on weekend working hours.

LONDON (CNNMoney) Credit Suisse has joined the ranks of investment banks attempting to lighten the load for junior staff as the industry faces scrutiny over grueling working conditions.

The internal memo sent Monday and obtained by CNNMoney said analysts and associate level staff should not be in the office from 6 p.m. Friday to 10 a.m. Sunday unless they are working on a live deal.

A live deal is one "that is actively being put together," according to the bank. The number of such deals underway at any time fluctuates.

The guidance, which applies to staff in the Americas, was issued by the global head of investment banking Jim Amine.

Amine said junior bankers should not be called in for weekend work on non-live deals without management approval.

The working policy also said that junior staff are "expected to reply to e-mails in a timely manner throughout the weekend."

Several investment banks have moved to relax working conditions for junior staff following the death of a former Bank of America intern in London last year.

An inquest into the death of the 21-year old German, Moritz Erhardt, revealed a culture of heavy workloads for junior investment bankers.

The inquest found that Erhardt, who suffered from epilepsy, died of natural causes, though fatigue could have been a factor.

  Why big banks are too big to jail

This week, Bank of America (BAC, Fortune 500) recommended that its junior staff take at leas! t 4 weekend days off a month. In October, Goldman Sachs (GSPRC) also encouraged its junior bankers to take weekends off.

Goldman's Zurich office was investigated in 2013 by Swiss labor authorities after a complaint lodged by an employee group suggested the firm had run afoul of strict local labor laws related to tracking workers' hours.

BBRY: Daniel Loeb Isn’t Your Beacon of Hope

Popular Posts: 3 Stocks That Could Break Your Heart in 2014Bitcoin: It’s a Trade, Not an InvestmentNetflix Is a Great Company, But NFLX Stock Is a Terrible Investment Recent Posts: BBRY: Daniel Loeb Isn’t Your Beacon of Hope Bitcoin: It’s a Trade, Not an Investment Health Care REIT: HCN Combines Megatrends and Dividends View All Posts

BlackBerry (BBRY) has been a value trap that has ensnared more than its share of value hunting investors in recent years — yours truly included. Buying BlackBerry stock will also likely go down in history as the single-worst investing mistake in the otherwise illustrious career of Prem Watsa — the chairman of Fairfax Financial (FRFHF) and the man commonly known as the "Warren Buffett of Canada."

Attempting to call the bottom in BlackBerry stock — and ultimately getting burned — appears to be something of a rite of passage.

Now, it's Daniel Loeb's turn.

Loeb's Third Point Capital bought 10 million shares of BBRY stock last quarter, making him BlackBerry's fourth-largest institutional holder.

I should start by saying that Daniel Loeb is no dummy. Although Carl Icahn was more vocal about it, Loeb was the first big-name hedge fund manager to take the opposite side of Bill Ackman's poorly conceived short sale of Herbalife (HLF). Over the past 15 years, he has crushed the S&P 500 by more than 12 percentage points annually.

He's also in good company. Although Watsa is the highest-profile BlackBerry bull, last quarter saw funds managed by Joel Greenblatt, Jim Simons, and Mario Gabelli all initiate new positions in BBRY stock.

So, what's the story here? Did BlackBerry finally get so cheap that it was worth the risk?

Maybe. Even after the surge it has had thus far in 2014, BBRY stock still trades hands for just 0.57 times sales. And according to CEO John Chen, BBRY should be cash-flow positive by the end of this year and officially profitable by the end of the first quarter of 2016.

On paper, BlackBerry stock trades for 1.2 times its accounting book value. But bulls have long argued that BlackBerry's real estate and patent portfolio are vastly understated and that the company could be profitably stripped down and sold for spare parts. I conceded as much in an article last month in which I discussed BBRY stock as a potential asset play.

Still, I'm not buying.

Loeb has a well-deserved reputation as an activist investor that wrings unrealized value out of underperforming companies. But I see BBRY as being too broken for even Daniel Loeb to fix. BlackBerry's handset business is long past the point of no return. Shipments fell 41% last year — a year in which their competitors collectively saw sales rise by 39% — and BlackBerry's global market share is now barely one half of 1%.

The most damning indictment of all? BlackBerry's new high-end phones are even losing market share to in-house rivals; sales of older BlackBerry 7 phones grew to overtake those of BlackBerry 10 phones toward the end of last year.

I know, I know. BBRY is looking past handsets to focus on its future as a software and enterprise services company. I get that. And it sounds good.

There is just one massive problem with it: Virtually all of BlackBerry’s current revenue stream comes from handsets. About 40% of revenues comes from handset sales and 53% comes from services — but most of that are fees that users and carriers pay to access BlackBerry's network … with BlackBerry handsets. If handsets disappear, so do most of BlackBerry's revenues.

In other words, BlackBerry can't afford to continue selling handsets, but it also can't not afford to continue selling handsets.

It's a terrible position to be in, and while I believe that CEO John Chen is making a herculean effort, I don't see a clean way out of this.

So, what is Loeb's game plan? Does he — like Watsa — believe that the company will turn a corner?

I don't think so. My bet is that Loeb is positioning himself to either agitate for BBRY's sale or dismemberment.

Can you profit by riding Loeb's coattails? Maybe. But expect it to be a long, drawn-out affair, and understand that it might backfire spectacularly.

The more prudent move here is to simply walk away.

Charles Lewis Sizemore, CFA, is the editor of Macro Trend Investor and chief investment officer of the investment firm Sizemore Capital Management. Click here to receive his FREE weekly e-letter covering top market insights, trends, and the best stocks and ETFs to profit from today's best global value plays.

Top 10 Railroad Stocks To Own For 2014

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, railcar manufacturer Trinity Industries (NYSE: TRN  ) has earned a coveted five-star ranking.

With that in mind, let's take a closer look at Trinity and see what CAPS investors are saying about the stock right now.

Trinity facts

Headquarters (founded)

Dallas (1933)

Market Cap

$3.2 billion

Industry

Railroads

Trailing-12-Month Revenue

$3.8 billion

Management

Top 10 Railroad Stocks To Own For 2014: Panthera Exploration Inc. (PNX.V)

Iron South Mining Corp., a natural resource company, engages in the acquisition and exploration of resource properties in the Americas. It primarily explores for iron ore, gold, silver, and copper deposits. The company holds interests in the Roy property covering 478 hectares located in the Walker Lane District of west central Nevada, the United States. It also has an option to earn a 100% interest in the Fierro iron ore project covering 74,796 hectares located in Rio Negro Province, Argentina. The company was formerly known as Panthera Exploration Inc. and changed its name to Iron South Mining Corp. in February 2012. Iron South Mining Corp. was incorporated in 2000 and is headquartered in Vancouver, Canada.

Top 10 Railroad Stocks To Own For 2014: Bayswater Uranium Corp (BYU.V)

Bayswater Uranium Corporation, a natural resource company, engages in the acquisition, exploration, and development of uranium properties in Canada and the United States. Its primary project includes the Reno Creek property, which encompasses approximately 17,500 acres of claims and leases in Powder River Basin in northeastern Wyoming. The company also owns various base metal and diamond interests. Bayswater Uranium Corporation is based in Vancouver, Canada.

Top 5 High Dividend Stocks To Buy For 2015: Black Box Corporation(BBOX)

Black Box Corporation provides network infrastructure services for communications systems worldwide. Its services include design, installation, integration, monitoring, and maintenance of voice, data, and integrated communications systems. The company also offers voice communications solutions, technology product solutions, premises cabling, and other data-related services, as well as provides technical support services for its solutions, which include hotline services, consultation, site surveys, design and engineering, project management, single-site and multi-site installations, remote monitoring, and certification and maintenance of voice, data, and integrated communication solutions. It sells its products and services to small organizations, corporations, and institutions through its catalogs, on-site services offices, and Internet Web site. The company was founded in 1973 and is headquartered in Lawrence, Pennsylvania.

Advisors' Opinion:

• [By Evan Niu, CFA]

  What: Shares of Black Box (NASDAQ: BBOX  ) have popped today by more than 19% after the company reported earnings and boosted its dividend.

• [By Rich Duprey]

  Communications specialist�Black Box (NASDAQ: BBOX  ) announced today its third-quarter dividend of $0.09 per share, the same rate it paid last month after raising the quarterly payout 12.5% from $0.08 per share.

Top 10 Railroad Stocks To Own For 2014: Amerco (UHAL)

AMERCO, through its subsidiary U-Haul International, Inc., a do-it-yourself moving and storage operator that supplies products and services to help people move and store their household and commercial goods in the United States and Canada. The company engages in the rental of trucks, trailers, specialty rental items, and self-storage spaces primarily to the household mover as well as sales of moving supplies, towing accessories and propane. It also offers eMove, an online marketplace, which connects consumers to independent moving help service providers and independent self-storage affiliates, as well as manages self-storage properties. In addition, the company provides loss adjusting and claims handling services, as well as underwrites moving and storage protection packages, including Safemove and Safetow that provide moving and towing customers with a damage waiver, cargo protection, and medical and life insurance coverage; Safestor, which protects storage customers from loss on their goods in storage; and Super Safemove that offer rental customer with a layer of primary liability protection. Further, it provides life and health insurance products primarily to the senior market through the direct writing or reinsuring of life insurance, medicare supplement, and annuity policies. The company rents its orange and white U-Haul trucks and trailers, as well as offers self-storage rooms through a network of approximately 1,400 company operated retail moving centers and approximately 15,000 independent U-Haul dealers. Its rental fleet consists of approximately 101,000 trucks, 82,000 trailers, and 33,000 towing devices, as well as operates approximately 1,115 self-storage locations in North America, with approximately 411,000 rentable rooms. The company was founded in 1945 and is based in Reno, Nevada.

Advisors' Opinion:

• [By Rich Smith]

  Given my druthers, were I asked to recommend a truck rental shop today, I think I'd have to go with U-Haul owner AMERCO (NASDAQ: UHAL  ) instead. It's got the free cash flow that Ryder lacks, plus a cheaper P/E, a slightly faster growth rate, and a smaller debt load. Honestly, I don't "love" AMERCO either -- but it's a heck of a better value than Ryder.

Top 10 Railroad Stocks To Own For 2014: (RDI.TO)

Rockwell Diamonds Inc. engages in developing and operating alluvial diamond mines in the Republic of South Africa. Its flagship mine, Saxendrift, is located on the south bank of the Orange River in the Herbert district of the Northern Cape Province. The company was formerly known as Rockwell Ventures Inc. and changed its name to Rockwell Diamonds Inc. in May 2007. Rockwell Diamonds Inc. was incorporated in 1988 and is headquartered in Johannesburg, South Africa.

Top 10 Railroad Stocks To Own For 2014: Txt E-solutions(TXTS.MI)

TXT e-solutions S.p.A. provides various software products and solutions to the industrial sector in Italy and internationally. It offers TXT PERFORM, a suite of demand and supply chain management solutions, which comprises TXT CDMi, a collaborative demand management and intelligence tool; TXTPLAN that provides optimization algorithms, what-if capabilities, and performance management capabilities within an integrated environment for production, inventory, distribution, and replenishment planning; PDMi, a product data management and intelligence tool, which provides product data management and collection design and development capabilities; TXTCHAIN, a Web-based supplier relationship management tool for communication and process management with partners; and TXTMAKE, that supports planning and managing production operations? workflows and reporting. The company also provides TXT NEXT, that offers a portfolio of system integration and information technology services, primari ly for aerospace and defense, and high tech manufacturing, and banking and finance sectors. In addition, TXT e-solutions offers TXT Polymedia Video, that captures, manages, handles, and distributes videos on different media and channels; and Polymedia advertising, which provides interactive advertising solutions to various channels and media. The company has strategic partnerships with Microsoft, IBM, Accenture, and HP. The company was formerly known as TXT Ingegneria Informatica S.p.A and changed its name to TXT e-solutions S.p.A. in March 2000. TXT e-solutions S.p.A. was founded in 1989 and is headquartered in Milan, Italy.

Top 10 Railroad Stocks To Own For 2014: Nemaska Exploration Inc (NMX.V)

Nemaska Lithium Inc. engages in the exploration and development of lithium mining properties in Canada. The company is also involved in processing spodumene into lithium compounds. It holds 100% interests in the Whabouchi property consisting of 33 claims covering an area of approximately 1,716 hectares located in the James Bay area of Quebec province; and the Sirmac property comprising 15 mining claims covering an area of approximately 645 hectares located in the Quebec province. The company was formerly known as Nemaska Exploration Inc. and changed its name to Nemaska Lithium Inc. in December 2011. Nemaska Lithium Inc. is headquartered in Quebec, Canada.

Top 10 Railroad Stocks To Own For 2014: Raffaele Caruso SpA (YRC)

Raffaele Caruso SpA is an Italy-based company, operating in the apparel sector. It produces tailor-made suits, coats and jackets, for men only. The Company owns three industrial facilities in Soragna and in Ponte dell��glio, Italy. The Company distributes its products worldwide through its own brands Raffaele Caruso and Fluo. The Company also acts as wholesaler for brands of other companies.

Top 10 Railroad Stocks To Own For 2014: Pacific Ore Ltd (PSF.AX)

Pacific Ore Limited engages in the identification, acquisition, exploration, and development of resource projects. The company is based in Perth, Australia.

An Enticing Discount on MLPs

Investors seeking exposure to master limited partnerships (MLPs) have many options. There are of course conventional energy MLPs, ranging from upstream (oil and gas producers) to midstream (logistics) and downstream (refiners). MLPs also offer niche opportunities in sectors as diverse as marine shipping and propane distribution. Further afield, the MLP structure is popular with private equity shops and also used to invest in forestry, amusement parks and fertilizer production.

There are MLPs that are structured as partnerships, but have chosen to be taxed as corporations. This class will be covered in an upcoming issue. The main advantage for investors is that this structure somewhat simplifies tax reporting, while offering the attractive yields of an MLP.

Mutual funds are another way to play the MLP space in a way that simplifies tax reporting. But because these mutual funds must pay corporate income tax on their earnings, most of the tax advantage of directly investing in MLPs is lost. Many of the funds use leverage to help overcome some of this disadvantage, but this can be a risky strategy and one that adds to costs.

Nevertheless, at times the MLP-focused mutual funds may be attractive. Consider a closed-end fund (CEF). These funds trade on an exchange just like a stock or MLP unit, which means that the underlying value of the securities held by the fund can become disconnected from the price of the fund share. Some days the market capitalization of the fund is valued at more than the underlying securities (i.e., it trades at a premium) and other times the fund is valued at less than the securities it holds (i.e., it trades at a discount).

A good source of information on MLP closed-end funds is MLPData.com. The following table shows the premium/discount for the MLP CEFs.


Closed-end MLP funds. Data Source: MLPData.com

As I write this, Tortoise Pipeline and Energy (NYSE: TTP) trades at a discount of 15.1 percent to its underlying assets, while at the other end of the spectrum Cushing MLP Total Return Fund (NYSE: SRV) trades at a 17.4 percent premium. The average MLP closed-end fund listed trades at a 4.9 percent discount, which is perhaps reasonable given the loss of certain tax advantages and the fact that management fees will eat into returns.

Of course most of us like the idea of buying things for less than their inherent value. This is why Black Friday is such a popular event every year. But closed-end funds sometimes trade at a premium or discount for a good reason.

Perhaps management doesn’t have a consistent track record. Or maybe market sentiment has turned against a particular group of MLPs (say, upstream ones) within a fund’s portfolio. In that case, though, investors exiting a fund could discount it excessively relative to its losses on unpopular holdings.

This volatility can create opportunities for patient investors. Over time, a well-managed closed-end fund with reasonable management fees shouldn’t sustain a large discount. So investors interested in this space should watch the premium/discount of CEFs. A fund may be of interest if its discount widens well beyond historical norms.

As for Tortoise Pipeline and Energy, it’s a two-year-old fund offered by a respected MLP asset manager, with the bulk of its portfolio in midstream energy infrastructure, mostly such corporate MLP sponsors as Spectra Energy (NYSE: SE) and Williams (NYSE: WMB). Traditional MLPs make up the 25 percent maximum of the portfolio permitted by law, and oil and gas producing corporations account for another 15 percent.

Net asset value increased 33.3 percent last year, while the unit price rose just 23.7 percent, helping to boost the NAV discount to its current levels. The current yield is 5.8 percent, but another useful site for closed-end funds, Nuveen’s CEFConnect.com, puts the total annual expense ratio at a hefty 3.4 percent. (Tortoise’s own site lists the management fee at 0.95 percent, excluding other expenses.) And unlike much of the traditional MLP distribution, TTP’s quarterly payouts are mostly not tax deferred, unless held in a tax-deferred IRA account.    

(Follow Robert Rapier on Twitter, LinkedIn, or Facebook.)

Portfolio Update

Boardwalk Craters

This is, fortunately, an update not on a current portfolio holding but rather one on Boardwalk Pipeline Partners (NYSE: BWP), the MLP we recommended selling in November at near $28 and ahead of a continuing decline that cost investors another 13 percent as of Friday.

By last fall, it was already clear that the development of the Marcellus shale had undermined the long-term profitability of Boardwalk’s Texas-to-Northeast pipelines, and that the balance sheet was too stretched to absorb a protracted business downturn.

But no one could have anticipated today’s announcement that the distribution would be slashed by 80 percent in response to an anticipated 30 percent decline in distributable cash flow. Not only are expiring gas shipping contracts not getting renewed at anything like the former rates, but the narrowing of regional differentials on natural gas has undermined the fundamentals of Boardwalk’s gas storage business. On top of that, last year’s cash flow was boosted by gas sales that won’t repeat.

Boardwalk’s unit price plunged 46 percent in a single day on the news, all the way to $13.01. It’s only the latest reminder of the folly of comparing MLP distributions with bond yields, which cannot be unilaterally lowered by a board. MLPs are dynamic, often volatile businesses, and the cost of changing market conditions and excessive leverage can be drastic. There is no free lunch and no extra yield without extra risk. Our goal is to protect your portfolio from the next Boardwalk.

– Igor Greenwald

Stock Talk

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

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

Top Things to Do When You're the Only One in the Office

NEW YORK (TheStreet) -- Just because the office is empty doesn't mean you can't stay busy. In fact, the slow holiday season may be the perfect time to catch up on your to-do list and make your 2014 work life a little easier. Before you opt for long lunches or spend hours on Facebook, check out these three productive things you can do when the office is slow.

1. Reflect on your accomplishments and set new goals.

This is a great time to take a step back and reflect on what you've accomplished in the past year. If you haven't already, update your brag sheet to include all your most recent professional achievements and contributions, suggests Amanda Augustine, job search expert for TheLadders.

"This process will help you prepare for your upcoming annual review and any conversations you plan to have with your manager about your compensation," Augustine says. Also, take a look at your calendar and set personal goals. "Reflecting on the past year and assessing what you would like to improve or work towards in 2014 can be a great thing to do during the slower holiday weeks at work," says Piera Palazzolo, senior vice president of marketing at Dale Carnegie Training. Even if it's difficult to think of being a career-focused dynamo when work is slow, it's important to use the end of the year to consider where you want to be in five or more years from now, Augustine says. "Set a few goals for the New Year that will get you one step closer to your long-term professional aspirations. Create an action plan to help you meet these goals. This could include signing up for a professional development course, seeking out a mentor or updating your resume," she says.
Also see: 5 Ways the Holidays Can Help You Get a Job>> 2. Reach out to colleagues, current and former. Reach out to your professional mentor as well as others who have helped you in your career development this year, such as former bosses and colleagues, alumni connections and others, suggests Paul McDonald, senior executive director at professional staffing firm Robert Half. "Extend an invitation for coffee or lunch," McDonald says. "Never assume people know how grateful you are for what they've done for you -- take the time to show it with words and deeds. December is a great time to do this -- if people are in, their schedules may be more flexible than usual." Also, consider reaching out to someone who might appreciate your support, McDonald says. Perhaps you know someone who is struggling to find a job, a student looking for tips on how to land his first role or a former colleague looking to resume her career after a break. "The holidays can be an especially difficult time for people facing transition. A phone call and offer to meet for coffee could make a world of difference to them, and make you feel good as well," he says. Also, don't forget about the people you work most closely with, Palazzolo says. "Plan a team lunch or gathering with the people who are in the office," she suggests. "Getting to know your colleagues in a social setting can impact your engagement at work. It is important to make use of the slower time to internally reconnect with your colleagues, as it can improve how you feel at work." Even if you reach out via snail mail, it's still networking, Palazzolo explains. "Take the time to touch base with your professional contacts with a holiday card," she says.
Also see: 3 Ways to Stay Motivated at Work This Winter>> 3. Neaten up -- Your books and your desk. "You might have an end-of-year performance review coming up, or a quarterly check-in with your boss. The final weeks of the year may give you some quiet time to prepare for the meeting," McDonald says. "Think about ways you can streamline processes, cut waste and improve efficiencies -- in your own role or companywide." While you're cleaning up the business side of things, think about cleaning up some of the more physical elements of the office -- take the time to get organized and clean out your desk, McDonald suggests. "Clearing out your workspace can help clear your mind as well -- you'll be more productive with less clutter. Many people might list 'getting more organized' as one of their New Year's Resolutions -- you can get a head start on this before 2014 is underway and feel great about getting something crossed off your list," he says. If cleaning doesn't sound like something you need to do, ask yourself: "When was the last time the office was organized and cleaned? Is it time to replenish office supplies?" asks Jennifer Friedman, CMO of small business at CT Corp. and its subsidiary BizFilings. "Ensuring the success of your business, as well as the happiness of your customers and employees, requires effort and dedication -- no better time than the holiday lull!" Friedman says.

Retailers With Stingy Return Policies

It's bound to happen. As you unwrap your gifts there probably will be at least one you don't like. Maybe it will be a sweater three sizes too big, the same "World's Greatest Dad" tie you got last year, or a "Gone Fishin'" plaque (even though you don't fish). Whatever it may be, you better hope that it came from a store with a good return policy.

SEE ALSO: 5 Reasons Your Gift Will Be Returned

Some retailers really do make it easy for consumers by giving them a year or more to return purchases they're not satisfied with (see Retailers With Generous Return Policies). However, most retailers offer a 30-day window for refunds or exchanges. There are a few, though, that give consumers even less time to bring back items or have strict requirements for issuing refunds.

Some merchants have adopted strict policies in an effort to curb return fraud, which costs retailers billions of dollars a year, according to the National Retail Federation. In particular, retailers are trying to head off "wardrobing" -- the practice of buying, using and then returning a product (usually clothing or electronics) for a refund.

These five retailers have particularly stingy return policies, based on our research and a comparison of retailers' policies by Cheapism.com. The descriptions below highlight the key points of retailers' policies. For more detailed information, visit their Web sites.

Barnes & Noble gives customers just 14 days to return items with a receipt for a refund. However, the bookstore extended its policy for the holidays to allow returns until January 31, 2014, for purchases made between November 11 and December 31. It will not accept returns for Nook books and magazines. And returns with a gift receipt will be refunded in the form of a gift card.

Best Buy won't let you return or exchange products after 15 days, unless you're a Best Buy Elite member (which gives you 30 days) or Elite Plus member (which gives you 45 days). However, gift purchases made between November 3 and December 31 can be returned through January 15, 2014. The original receipt, gift receipt or packing slip is required for all refunds and exchanges. And you'll have to show a photo ID to return an item in-store. Best Buy requires identification because it tracks returns and exchanges to identify customers who frequently bring back purchases.

GameStop limits returns to seven to 30 days, depending on the item, and requires a receipt for all exchanges and returns. Unopened new merchandise can be returned for a refund or exchange within 30 days. Opened items can only be exchanged for identical items within 30 days. And pre-owned products must be returned within seven days for a refund or 30 days for an exchange for the identical item. Customers with a gift receipt can exchange an item or receive a gift card of equal value.

Gilt has a relatively short return window and a complicated policy. For starters, this members-only shopping site allows only sized items -- clothing, footwear and belts -- to be returned for a refund. Handbags, toys, ties and other non-sized items aren't eligible for return. Customers have 21 days to return eligible items, which must be unused and in their original packaging. Items priced at $199.99 or less can be returned for Gilt credits. Items priced at $200 or more can be returned for Gilt credits or a refund minus $7.95 for return shipping. On its Web site, Gilt justifies its return policy as a trade-off for "instant insider access to top designer labels and coveted products at a significant discount."

Overstock.com will give customers a full refund if they return new, unopened items within 30 days of delivery. However, the online retailer will issue only a partial refund if an item has been opened or shows signs of wear. According to Cheapism.com, this policy seems punitive compared with other retailers that impose similar restrictions on only a select few product categories. Overstock also will issue a reduced refund when returns are initiated after 30 days or are received at its processing facility 45 days after delivery. On its Web site, the company defends its 30-day return window because "products devalue over time." Overstock has, however, extended its policy to give customers more time to return holiday purchases. Returns for purchases made November 1 through December 31 must be initiated by January 31.

What to Watch on Wall Street This Week: Skiing, Suits, Homes and Hobbits

Craig Warga/Bloomberg via Getty Images You can never know in advance all the news that will move the market in a given week, but some things you can see coming. From earnings reports to a new "Hobbit" film, let's take a look at the business news that will break in the week ahead. Monday -- Let it Snow, Let it Snow, Let it Snow: Ski resorts are open for the season, and we'll get a great early read on how the business is holding up when Vail Resorts (MTN) reports fresh financials after Monday's market close. True to its name, Vail Resorts operates a ski property in Vail as well as nearby slopes in Beaver Creek, Breckenridge and Keystone in Colorado. It also owns resorts in six different snowy states. Don't expect a quarterly profit out of Vail Resorts. The months of August, September, and October are naturally forgettable for ski resorts. Vail expects to generate four times as much revenue during the next three months as it did during the period that ended in October. However, Vail Resorts should be able to offer a glimpse about how the new ski season is starting to shape up. It has enough advance booking information to know what folks are willing to pay this year for a trek out to the slopes. Tuesday -- For Whom the Bell Tolls: It's once again great time to be a real estate developer. Home prices are moving higher, and those increases are moving at a headier clip than the costs to build new digs. We'll get a good snapshot of the housing industry when Toll Brothers (TOL) reports on Tuesday. The builder of upscale properties is typically blunt about its assessment, and naturally the news has been good in recent quarters as home buyers aren't walking away from their contracts, and asking prices keep inching up. Hovnanian (HOV) -- another developer that offers more accessibly priced properties -- reports two days later. Analysts see revenue surging 56 percent at Toll and 19 percent at Hovnanian. It's good to be a builder right now, but that won't remain that way if mortgage rates keep moving higher or if home prices start to pull back. Wednesday -- Suits Me Just Fine: Men's Wearhouse (MW) didn't like being on the receiving end of an unsolicited buyout offer from Jos. A. Bank (JOSB) a few weeks ago, so it turned around and made its own buyout offer to acquire the smaller retailer of fine suits. Men's Wearhouse should be used to the drama. It had investors shaking their heads when it let go of the chain's founder last year. Yes, the guy who used to guarantee that you would like the way you look after shopping at Men's Wearhouse. As for the high-end retailer, it reports quarterly results on Wednesday. It's always enlightening to hear a company offer up new performance metrics, but the market will also be tuning in to see if Men's Wearhouse has anything to say about the potential purchase of its smaller rival. Thursday -- Photoshop This Report: Adobe Systems (ADBE) is the leader in desktop publishing software, but there's only so much money to be made selling photo-altering Photoshop and PDF-authoring Acrobat sthese days. When Adobe reports on Thursday analysts see an 11 percent decline in revenue with profitability nearly shaved in half. Online publishing is as important as ever, but there are too many free or nearly free cloud-based offerings for casual users. Adobe is still popular with pros, but growing at this point may prove challenging. Oh, if only Adobe could Photoshop its way into merrier days. Friday -- Lord of the Box Office Rings: Time Warner (TWX) hits the silver screen with the latest installment in J.R.R. Tolkien's epic fantasy saga. "The Hobbit: The Desolation of Smaug" follows Thorin Oakenshield, his crew of stalwart Dwarves, and of course, the titular Bilbo Baggins, as they try to reclaim Lonely Mountain from the dragon. A night at the movies is still alive and well. Backed by a strong slate of November releases, exhibitors topped $1 billion in ticket sales last month. December should be even stronger, and the latest Hobbit movie should be one of this month's biggest winners.

Christmas Rally Starts Monday! – My ETF Trading Strategies

Tis the Season for the most powerful seasonality trade of the year!

With the stock market up big in 2013 and most participants are speculating on a pullback in the next week or two, I have to say I am on the other side of that bet. Being a technical trader I focus on patterns, statistics and probabilities to power my ETF trading strategies. So with 37 years of stats the seasonality chart of the S&P 500 index paints a clear picture of what is likely to happen in December.

If you do not know how to read a seasonality chart, I will explain as its very simple. The simply shows what the index has done on average through each month over the past 37 years. December typically has the strongest up trend and probability of happening any other time of the year.

The Big Board – NYSE

The NYSE also referred to as the Big Board, is an index with the largest brand name companies. Most individuals do not follow this, but to me its as close to the holy grail of trading than anything else I know. I use many different data points from this index (momentum, order flow, trend) for my ETF trading strategies.

You must follow the trend of this index if you want to be on the right side of the market. While I follow and track the New York Stock Exchange closely and it has its own fund NYC but it's an ETF trade I do not use. These big stocks are what really move the market (S&P 500) I think so I always trade with this index trend in mind.

S&P 500 Weekly ETF Trading Strategy – Bullish

The chart below is self-explanatory I think… But let me recap.

The overall trend is up, so your ETF trades should be to the long side buying on the dips. The chart below goes back three years so the candles are a little condensed and small, but what you need to know are these two points:

1. After a correction within a trend, probability says that price is more likely to continue rising than it is to reverse. Notice the market just had a running correction through the summer months.

2. A reversal candle on the weekly chart (bullish reversal candle) generally indicates a 2-3 week rally is likely to happen.

Conclusion: Seasonality says higher prices, weekly chart below shows bullish reversal candle… Oya!

The Bigger Picture: 3 -6 Months Out…

This is a quarterly chart and BIG picture outlook. Over the next 3-6 months we could see the stock market start to become choppy and rollover into a minor bear market for a couple years. That is the best case scenario I think… The other scenario is a major crash back down to the 700-1000 level on the SP500 which would cripple the baby boomer's from retiring and getting a job would be impossible for almost everyone – full blown recession way worse that what everyone is saying we are in now.

Things are going to be really interesting over the next few years and things for south you better be prepared to make a killing during the next bear market or life will not be fun. The nice thing is that you can take advantage of these moves without ever having to lift a finger with my automated trading system.

ETF Trading Strategies Holiday Conclusion:

In short, I think we have a couple good weeks ahead of us. Holiday season, quality family time and a rising stock market paints a nice picture in my mind.

Anyway, I hope this report was helpful and somewhat educational. I always appreciate feedback and things you would like me to write about how I interpret, trade or analyze things. I am here to help and new topics to write about are always welcome!

JOIN MY FREE ETF TRADING NEWSLETTER!

Book Value Buys in Energy

Two energy issues have passed our screen for low-price to book value stocks; both stocks have price to book ratios of less than two, Value Line Financial Strength rating of B++ or better, and forecasted EPS growth during the next 12 months of 15% or higher, notes J. Royden Ward, editor of Cabot Benjamin Graham Value Letter.

Apache (APA), founded in 1954 and based in Houston, is one of the largest independent exploration and production companies in the US, with operations in Canada, Egypt, the UK, Australia, Argentina, and Chile.

During the past three years, Apache has made four major purchases totaling $12 billion. The company's aggressive buying spree has added substantial crude oil and natural gas assets with great potential.

Exceptional production growth could push sales and earnings considerably higher than expected. Apache sold 33% of its troubled assets in Egypt to Sinopec for $3.1 billion, which will help to pay down its debt.

After a sharp drop in EPS in 2012, caused by slower production, and low oil and natural gas prices, Apache is poised to bring newly acquired production online and increase sales by 9%, and boost EPS by 32% to $8.85 during the 12 months ending September 30, 2014.

With a P/E ratio of 13.6 times my EPS estimate and a low P/BV ratio of 1.12, APA is undervalued. I expect APA to reach my minimum sell price target of $127.60 within one to two years.

Noble (NE), founded in 1921 and based in Switzerland since July 2009, is one of the world's leading offshore drilling contractors. The company now operates a fleet of 68 offshore drilling rigs.

Eleven new drilling rigs will be added to the fleet during the next 15 months, which will make Noble the second largest in the world. In recent months, the permitting process in the US Gulf of Mexico has improved, allowing more drilling deepwater units to operate in the Gulf.

Noble took delivery of two new rigs in the third quarter and will take delivery of three more in the fourth quarter. The added capacity will help boost sales by 16% and EPS by 29% during the next 12 months ending September 30, 2014.

At 15.3 times current EPS, and with a price to book value ratio of 1.17, NE is undervalued. The dividend yield of 2.5% is attractive, and EPS will likely increase a hefty 19% per year during the next five years. The stock will likely rise to my minimum sell price target of $60.07 within two years.

Subscribe to Cabot Benjamin Graham Value Letter here…

More from MoneyShow.com:

Energy Transportation: Growth, Yield, and Value

Navigating the MLP Sector

LinnCo Drills for Dividends

Four Stocks Which Refuse To Sell Off With The Stock Market

If the January Barometer is any guide, stocks could be in for a rough 2014. The 2013 gain of over 29% in the S&P 500 and the gain of over 26% in the Dow Jones Industrial Average may have simply pulled forward most of the expected gains that could be had in 2014. The Dow is now close to being 1,000 points off its high and the S&P 500 lost 3.5% in January.

If the market is now looking bearish again, then shouldn’t most stocks head south with it? The obvious answer is yes. Still, some stocks just refuse to go down with the market.

24/7 Wall St. wanted to identify four very well-known companies which are refusing to participate in the stock market carnage. Two are high-beta stocks and two are companies which would seemingly follow the market trends.

We avoided companies which were booming on volatile drug data, and we also avoided the companies which were running up only because of end-of-week earnings reactions. This end of week earnings criteria kept Chipotle, Facebook, Google and other companies from being included in this screen as well. We will have to see in a couple of weeks if they are able to hold their gains.

Netflix Inc. (NASDAQ: NFLX) is still feeling investor support more than a week after earnings. Netflix is a high beta stock that should at least theoretically be at risk in a market correction over it valuations. After all, isn’t 221-times trailing earnings and 100-times expected 2014 earnings a bit steep if the market is dropping? Netflix also discounted the concerns of net neutrality, but not everyone is convinced. There is love in the air seemingly because the 44 million members will likely be 50 million soon, and then maybe 60 million in the not too distant future. Netflix rose 1.1% to $409.33 on Friday and hit a new high of $412.40 on the day; and shares are up 11% so far in 2014, and they are up well over 300% from the end of 2012.

LifeLock Inc. (NYSE: LOCK) has only been public for about 15 months. It is a high beta stock, trading at 55-times expected trailing earnings and almost 48-times expected 2014 earnings. The driving force here is that identity theft and organized global fraud against consumers is forcing everyone to buy identity protection services. Target was the worst recent news on this front, but there are literally dozens of other companies who have had data breaches on their millions of customers. LifeLock shares hit a new high of $20.83 on Friday and closed up 1.6% at $20.41 on the day. This one is up about 150% from its IPO in late 2012.

Burger King Worldwide, Inc. (NYSE: BKW) is in the boring fast food business. With all of the targeted wage pressures around fast food workers, with all the health pushback, and with fierce competition, you might just assume that Burger King would be selling off with the broad market. Still, shares hit a new all-time post-IPO high of $24.57 and closed up 1.5% at $24.34 on Friday. The stock price is even more than $1 over the consensus analyst price target. Burger King shares are up 6.5% so far in 2014, and the stock is up 50% from the end of 2012. And the stock keeps rising.

Comcast Corp. (NASDAQ: CMCSA) did report its earnings last Tuesday. Despite the gains, you would think that maybe market pressure would act as a drag on its stock. The addition of 43,000 video subscribers in the last quarter is very small, but still bucked declining trends elsewhere. With telecom providers, satellite TV, cord-cutters, and general internet TV options all around, Comcast should theoretically be under subscriber pressure. And another big cable merger is just that much more competition. Still, Comcast is adding bundles to its customers and the revenue per customer is rising and is now approaching $160 per month. Comcast hit a new high of $54.70 on Friday and closed up 0.4% at $54.45 on the day. Shares are up almost 5% so far in 2014, and the stock is up 48% since the end of 2012.

 

5 Stocks Ready to Break Out

DELAFIELD, Wis. (Stockpickr) -- Trading stocks that trigger major breakouts can lead to massive profits. Once a stock trends to a new high or takes out a prior overhead resistance point, then it's free to find new buyers and momentum players who can ultimately push the stock significantly higher.

>>5 Toxic Stocks to Sell Before February

One example of a successful breakout trade I flagged recently was specialty retailer Coldwater Creek (CWTR), which I featured in Jan. 24's "5 Stocks Ready to Break Out" 74 cents per share. I mentioned in that piece that shares of CWTR recently formed a double-bottom chart pattern at 66 cents to 67 cents per share. The stock was starting to bounce off those support levels and it was showing relative strength on a big down day. That bounce was starting to push shares of CWTR within range of triggering a big breakout trade above some near-term overhead resistance levels at 82 to 84 cents per share.

Guess what happened? Shares of CWTR didn't wait long to trigger that breakout, since the stock took out those key overhead resistance levels on Jan. 27 with strong upside volume flows. This stock broke out and continued to soar higher with shares of CWTR tagging an intraday high on Jan. 29 of 97 cents per share. That represents a gain of right around 30% from the 74-cent level for anyone who bought the stock in anticipation of that breakout. CWTR has now pulled back to right above its 50-day moving average of 82 cents per share, which could offer another good entry point if that level holds.

>>5 Stocks Under $10 Set to Soar

Breakout candidates are something that I tweet about on a daily basis. I frequently tweet out high-probability setups, breakout plays and stocks that are acting technically bullish. These are the stocks that often go on to make monster moves to the upside. What's great about breakout trading is that you focus on trend, price and volume. You don't have to concern yourself with anything else. The charts do all the talking.

Trading breakouts is not a new game on Wall Street. This strategy has been mastered by legendary traders such as William O'Neal, Stan Weinstein and Nicolas Darvas. These pros know that once a stock starts to break out above past resistance levels and hold above those breakout prices, then it can easily trend significantly higher.

>>5 Big Trades to Profit During the Fed's QE Pay Cut

With that in mind, here's a look at five stocks that are setting up to break out and trade higher from current levels.

Biostar Pharmaceuticals

One stock that's starting to trend within range of triggering a big breakout trade is Biostar Pharmaceuticals (BSPM), which engages in the development, manufacture, and marketing of over-the-counter and prescription pharmaceutical products for various diseases and conditions in the People's Republic of China. This stock has been on fire over the last three months, with shares soaring by a whopping 85%.

If you take a look at the chart for Biostar Pharmaceuticals, you'll notice that this has been trending sideways and consolidating over the last two months, with shares moving between $1.75 on the downside and $2.66 on the upside. Shares of BSPM have just started to bounce off the lower end its range the last few trading sessions, with the stock spiking from $1.77 to its high of $2.25 a share. That bounce is starting to push shares of BSPM within range of triggering a big breakout trade.

>>5 Short-Squeeze Stocks That Could Pop in February

Traders should now look for long-biased trades in BSPM if it manages to break out above some near-term overhead resistance levels at its 50-day moving average of $2.13 a share to some more near-term overhead resistance at $2.25 a share with high volume. Look for a sustained move or close above those levels with volume that hits near or above its three-month average volume of 458,935 shares. If that breakout hits soon, then BSPM will set up to re-test or possibly take out its next major overhead resistance levels at $2.66 to $3 a share. Any high-volume move above those levels will then give BSPM a chance to re-test or possibly take out its 52-week high at $3.44 a share.

Traders can look to buy BSPM off any weakness to anticipate that breakout and simply use a stop that sits right below some key near-term support levels at $1.77 to $1.75 a share. One can also buy BSPM off strength once it starts to take out those breakout levels with volume and then simply use a stop that sits a comfortable percentage from your entry point.

MEI Pharma

A development-stage oncology player that's quickly moving within range of triggering a major breakout trade is MEI Pharma (MEIP), which focuses on the clinical development of therapeutics for the treatment of cancer. This stock has trended modestly higher over the last three months, with shares up around 4%.

>>4 Big Stocks on Traders' Radars

If you take a look at the chart for MEI Pharma, you'll notice that this stock has been trending sideways and consolidating for the last three months, with shares moving between $7.30 on the downside and $8.94 on the upside. This stock is just starting to spike modestly higher right off both its 200-day moving average of $8.22 and its 50-day moving average of $8.25 a share. That spike is starting to push shares of MEIP within range of triggering a major breakout trade above the upper-end of its recent sideways trading chart pattern.

Traders should now look for long-biased trades in MEIP if it manages to break out above some key near-term overhead resistance levels at $8.68 to $8.94 a share with high volume. Look for a sustained move or close above those levels with volume that hits near or above its three-month average action of 130,103 shares. If that breakout triggers soon, then MEIP will set up to re-test or possibly take out its next major overhead resistance levels at $10 to $10.95 a share. Any high-volume move above $10.95 will then give MEIP a chance to tag $11.50 a share.

Traders can look to buy MEIP off any weakness to anticipate that breakout and simply use a stop that sits right below some key near-term support levels at $8 or $7.50 a share. One could also buy MEIP off strength once it starts to take out those breakout levels with volume and then simply use a stop that sits a comfortable percentage from your entry point.

NQ Mobile

Another technology player that's starting to trend within range of triggering a big breakout trade is NQ Mobile (NQ), which  provides mobile Internet services in the areas of mobile security, privacy, productivity, personalized cloud and family protection. This stock is off to a decent start in 2014, with shares up notably by 12.7%.

>>5 Stocks With Big Insider Buying

If you take a look at the chart for NQ Mobile, you'll notice that this stock has been uptrending strong for the last two months, with shares moving higher from its low of $10.53 to its recent high of $18.50 a share with strong upside volume flows. During that uptrend, shares of NQ have been making mostly higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of NQ within range of triggering a big breakout trade above some near-term overhead resistance levels.

Traders should now look for long-biased trades in NQ if it manages to break out above some near-term overhead resistance levels at $18 to $18.50 a share with high volume. Look for a sustained move or close above those levels with volume that hits near or above its three-month average action of 5.15 million shares. If that breakout triggers soon, then NQ will set up to re-test or possibly take out its next major overhead resistance levels at $22 to $24 a share.

Traders can look to buy NQ off any weakness to anticipate that breakout and simply use a stop that sits just below some key near-term support at $14.28 a share, or around its 200-day moving average of $13.74 a share. One can also buy NQ off strength once it starts to take out those breakout levels with volume and then simply use a stop that sits a comfortable percentage from your entry point.

Kingold Jewelry

Another stock that's uptrending and starting to move within range of triggering a major breakout trade is Kingold Jewelry (KGJI), which engages in the design, manufacture and sale of gold jewelry, ornaments and investment-oriented products in the People's Republic of China This stock is off to a strong start in 2014, with shares up around 12.5%.

>>4 Stocks Breaking Out on Big Volume

If you look at the chart for Kingold Jewelry, you'll notice that this stock has been uptrending strong over the last month, with shares moving higher from its low of $1.52 to its recent high of $1.98 a share. During that uptrend, shares of KGJI have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of KGJI within range of triggering a major breakout trade.

Traders should now look for long-biased trades in KGJI if it manages to break out above some near-term overhead resistance at $1.98 a share and then once it clears some past overhead resistance levels at $2.05 to $2.20 a share with high volume. Look for a sustained move or close above those levels with volume that hits near or above its three-month average action of 215,384 shares. If that breakout hits soon, then KGJI will set up to re-test or possibly take out its 52-week high at $2.45 a share. Any high-volume move above that level will then give KGJI a chance to tag $3 to $3.50 a share.

Traders can look to buy KGJI off any weakness to anticipate that breakout and simply use a stop that sits right below some key near-term support levels at $1.73 to $1.63 a share. One can also buy KGJI off strength once it starts to clear those breakout levels with volume and then simply use a stop that sits a comfortable percentage from your entry point.

Dex Media

My final breakout trading prospect is marketing services player Dex Media (DXM), which provides local, social, and mobile marketing solutions to businesses in communities across the U.S. under the Dex One and SuperMedia brands. This stock has been hammered by the bears over the last six months, with shares down by a whopping 59%.

If you look at the chart for Dex Media, you'll notice that this stock has recently formed a double bottom chart pattern at $5.71 to $5.66 a share right below its 50-day moving average of $6.25 a share. Shares of DXM are now starting to spike higher off those double bottom support zones and that spike is quickly pushing shares of DXM within range of triggering a major breakout trade.

Traders should now look for long-biased trades in DXM if it manages to break out above some near-term overhead resistance levels at $6.13 to $6.66 a share and then above more resistance at $7.06 a share with high volume. Look for a sustained move or close above those levels with volume that hits near or above its three-month average action of 401,668 shares. If that breakout triggers soon, then DXM will set up to re-test or possibly take out its next major overhead resistance levels at $8 to $9.31 a share. Any high-volume move above those levels will then give DXM a chance to tag its next major overhead resistance levels at $10 to its 200-day moving average at $10.77 a share.

Traders can look to buy DXM off any weakness to anticipate that breakout and simply use a stop that sits right below some key near-term support levels at $5.66 or at $5.27 a share. One can also buy DXM off strength once it starts to clear those breakout levels with volume and then simply use a stop that sits a conformable percentage from your entry point.

To see more breakout candidates, check out the Breakout Stocks of the Week portfolio on Stockpickr.

-- Written by Roberto Pedone in Delafield, Wis.

RELATED LINKS:

>>Wall Street Got Apple Wrong -- Again

>>4 Health Care Stocks Under $10 to Watch

>>3 Huge Stocks to Trade (or Not)

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.