Jim Cramer's 'Mad Money' Recap: Out With a Bang

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NEW YORK (TheStreet) -- The first quarter went out with a bang, Jim Cramer said on Mad Money Monday. But even as many investors said "good riddance" to a topsy-turvy quarter, the buzz on Wall Street on Monday was Michael Lewis' new book Flash Boys: A Wall Street Revolt.

Cramer said the only thing shocking about Lewis' new book is that people find it shocking at all. Cramer has been a long-time opponent of high-frequency trading, warning investors of how this type of trading hurts not only investors but the markets themselves.

Yet, while the practice of front-running is illegal, high-frequency trading has been overlooked and even embraced by the SEC and the major exchanges. "It's not stealing if it's not illegal," Cramer said as he wished Lewis more luck than he in raising awareness of the issue. High-frequency trading may only shave a penny or two from your trades, Cramer continued, but given the average market volume, that adds up to $21 million a day skimmed from the pockets of regular investors. That's why Cramer said he advocates investing for the long term. In the short term, you're sure to lose, he continued, but sticking with solid, multi-year trends will be a winner every time. Sour on Kandi No matter how great an opportunity may seem, there's only so much risk investors should be willing to take, Cramer told viewers, as he followed up on Kandi Technologies (KNDI), a stock he panned last week. Cramer explained that Kandi is a Chinese company that primarily manufactures motorcycles and go-carts, but has also introduced the Coco, a small, all-electric vehicle. The Coco news was enough to propel Kandi shares up 300% over the past 12 months as investors fashioned the company to be the Tesla Motors (TSLA) of China. But Cramer warned that, for the moment, Kandi is simply a go-cart company, one with no analyst coverage and little oversight by the Chinese government. That fact was driven home when the company received a formal investigation letter from the SEC back in November, yet chose not to disclose it in the company's quarterly earnings. Kandi buried the investigation in the 16-page "risk factors" section of its annual report. Maybe someday Kandi will be the way to play electric cars in China, Cramer concluded, but for now this stock is just far too risky. To watch replays of Cramer's video segments, visit the Mad Money page on CNBC. To sign up for Jim Cramer's free Booyah! newsletter with all of his latest articles and videos please click here. -- Written by Scott Rutt in Washington, D.C. To email Scott about this article, click here: Scott Rutt Follow Scott on Twitter @ScottRutt or get updates on Facebook, ScottRuttDC

Stock quotes in this article: KNDI, TSLA 

The PC Crushes Microsoft, Hewlett-Packard, and Intel

Shares of software giant Microsoft (NASDAQ: MSFT  ) are getting hammered today, down by 5% at the low. PC partner Hewlett-Packard (NYSE: HPQ  ) is seeing its shares crushed even more, with losses having flirted with 8%. Chipzilla Intel (NASDAQ: INTC  ) didn't escape the beating, with its shares having lost more than 3% before recovering moderately.

The big news today is that the PC market just posted the biggest drop in nearly two decades, according to IDC's latest estimates. Worldwide PC units fell by 14% in the first quarter, much worse than the 7.7% decline IDC had previously braced itself for. Further, IDC's 7.7% prediction had already been reduced, so no one was prepared for the enormous dropoff.

Windows 8 has done the PC market no favors. In fact, IDC says Microsoft's new operating system platform slowed the market, as consumers aren't too impressed by the radical interface changes that Microsoft is pursuing. Windows 8 is a bold new vision, but it would seem that it's too bold for the average user.

For better or for worse, Microsoft, HP, and Intel all continue to rely heavily on the PC market, even as each company has tried diversifying away from it. Here are the respective operating segments that are still tied directly to PC sales.

Company

Segment

Revenue (MRQ)

% of Total Revenue (MRQ)

Microsoft	Windows Division	$5.9 billion	27%
HP	Personal Systems Group	$8.2 billion	29%
Intel	PC Client Group	$8.5 billion	63%

Source: SEC filings. MRQ = most recent quarter.

Of course, both Microsoft's business segment, which includes Office, and HP's printer business are also tied to the PC market, though to a lesser extent. Those two companies have additional collateral damage to cope with.

Dell (NASDAQ: DELL  ) has been able to mostly avoid the bloodshed, with shares hardly flinching. However, that owes primarily to the numerous buyout offers on the table. Even though Dell is keenly aware of how bad the PC market is, there are now three offers to consider, and investors are just waiting for an exit.

There's no sugarcoating it: The PC is dead, and its demise just accelerated.

When it comes to dominating markets, it doesn't get much better than Intel's position in the PC microprocessor arena. However, that market is maturing, and Intel must find new avenues for growth. In this premium research report on Intel, our analyst runs through all of the key topics investors should understand about the chip giant. Click here now to learn more.

Lifeway's Growth Story Lives!

Shares of Lifeway Foods (NASDAQ: LWAY  ) are on a tear, up nearly a full $1 (or 8.3%) since reporting earnings last week. But is the price spike justified? Let's find out.

Reporting on Friday, Lifeway gave investors updated information on both its fiscal fourth-quarter 2012 performance, and on full-year 2012 as well.  Let's focus on that latter report giving a broader picture of how the company's doing. In fiscal 2012, Lifeway:

Grew its sales 16% to $81.4 million Expanded its gross profit margin earned on these sales to 34% Grew operating profits 74% On the bottom line, scored $0.34 per share for full-year earnings, a "record" total -- and twice what the company earned in 2011.

Going forward, CEO Julie Smolyansky promised shareholders even stronger results in the fiscal first quarter (and the quarter having just ended, she should be pretty confident of hitting those targets). According to Smolyanksy, first-quarter 2013 sales will be up 30% over first quarter 2012, an acceleration from the 24% sales growth experienced in fourth quarter 2012.

Probably the best news Lifeway had to report, though -- at least, to this Fool's mind -- was that the company has remained true to its word about focusing on "managing expenses" and "generating cash" from its business.

No longer just rushing full-tilt after higher and higher sales numbers (but not avoiding them, either), the company has doubled down on efforts to make these sales pay. Free cash flow at Lifeway approached $5.2 million in 2012, or literally twice the $2.6 million the company threw off in 2011.

Valuation
Of course, this does still leave the company trading for a valuation of 39 times that free cash flow (or 36.5 times GAAP profit, if you prefer that flavor of "earnings"). Most analysts doubt Lifeway's ability to keep on doubling its profits year after year, and posit a 25% long-term growth rate instead. That being the case, while I applaud the company's performance, I still can't countenance the valuation on Lifeway stock today.

Long story short, the company's going great guns -- but the stock is overpriced.

The retail space is in the midst of the biggest paradigm shift since mail order took off at the turn of last century. Only those most forward-looking and capable companies will survive, and they'll handsomely reward those investors who understand the landscape. You can read about the 3 Companies Ready to Rule Retail in The Motley Fool's special report. Uncovering these top picks is free today; just click here to read more.

Top Medical Companies To Invest In 2014

Getty Images In your 50s and beyond, health care costs loom more ominously than ever before -- and with good reason: According to the folks at Fidelity, a 65-year-old couple retiring now faces average health care costs in retirement of about $220,000. Fortunately, there are steps you can take to minimize the bite of health care expenses. Here are some tips to consider: 1. Don't take your health coverage for granted. While you might hope or expect that your employer will give you some health care coverage in retirement, that's increasingly hard to come by, and many folks who've been promised coverage have had it reduced or just canceled. Be sure to factor health care expenses into your retirement savings plan. If your financial future seems bleak, remember that you may be able to vastly improve it by working a few more years. During that time, you can save more money and keep any employer-based health insurance. Being active, whether through work or volunteering or hobbies, can help older people stay mentally and physically healthy, too. 2. Work longer. If necessary, consider working at least until Medicare kicks in, at age 65. Those who retire early can sometimes face steep health care costs until they qualify for Medicare. 3. Shop around for your prescriptions. There may be less expensive alternatives to the medications you're prescribed, and you might find much lower costs simply by calling a few local pharmacies to see what they charge for your prescription. You can also often find lower prices by ordering your medications online or through the mail. Your doctor can help lower your costs, too. If you're taking 10-mg pills, for example, you might be able to get a similar-priced prescription for 20-mg ones, and then use a pill-splitter to cut them in half. In a similar vein, if you're taking two 10-mg pills per day, you might ask if you can take a single 20-mg dose instead, if that will cut your costs and still be medically safe.

Top Medical Companies To Invest In 2014: Curis Inc.(CRIS)

Curis, Inc., a drug discovery and development company, focuses on the research and development of cancer therapeutics. The company, under collaboration with Genentech, Inc., is conducting a pivotal Phase II clinical trial on its lead molecule, GDC-0449 in advanced basal cell carcinoma patients, as well as various Phase II clinical trials in first-line metastatic colorectal cancer and advanced ovarian cancer patients. It is also evaluating CUDC-101, a small molecule that is in a Phase I clinical testing and is designed to target histone deacetylase, epidermal growth factor receptor, and epidermal growth factor receptor 2. In addition, Curis has a development candidate, Debio 0932, which is a Heat Shock Protein 90 or Hsp90 inhibitor. The company holds a license agreement with Debiopharm related to its Hsp90 technologies. Further, it involves in preclinical testing for the development of candidates from its targeted cancer programs. The company was founded in 2000 and is base d in Lexington, Massachusetts.

Advisors' Opinion:

• [By Monica Gerson]

  Curis (NASDAQ: CRIS) dipped 18.97% to $3.16 in the pre-market session after the company reported Q3 financial results and provided CUDC-427 development update.

Top Medical Companies To Invest In 2014: Imprimis Pharmaceuticals Inc (IMMY)

Imprimis Pharmaceuticals Inc. is a specialty pharmaceutical company developing non-invasive, topically delivered products. The Company�� Transdel cream formulation technology is designed to facilitate the effective penetration of a variety of products through the tough skin barrier. Ketotransdel, the Company�� lead pain product, utilizes the Transdel platform technology to deliver the active drug, ketoprofen, a non-steroidal anti-inflammatory drug (NSAID), through the skin directly into the underlying tissues where the drug exerts its anti-inflammatory and analgesic effects. Ketotransdel consists of a transdermal formulation of ketoprofen, a non-steroidal anti-inflammatory drug (NSAID), and its Transdel drug delivery system and is being developed for the treatment of acute pain. In July 2013, it acquired intellectual property for IPI-120 from Buderer Drug Company.

Ketotransdel penetrates the skin barrier to reach the targeted underlying tissues where it exerts its localized anti-inflammatory and analgesic effect. Transdel is the Company�� transdermal cream drug delivery platform. It consists of a cream that enables transdermal penetration of drugs avoiding first pass metabolism by the liver and minimizing systemic exposure. The Transdel drug delivery system facilitates the effective dissolution and delivery of a drug across the skin barrier to reach targeted underlying tissues.

Advisors' Opinion:

• [By John Udovich]

  The start of 2014 shows that biotech is still a hot area with the sector along with small cap biotech stocks like AMAG Pharmaceuticals, Inc (NASDAQ: AMAG), Mast Therapeutics Inc (NYSEMKT: MSTX), Cell Therapeutics Inc (NASDAQ: CTIC), Imprimis Pharmaceuticals Inc (NASDAQ: IMMY) and TNI BioTech (OTCMKTS: TNIB) producing news or returns�plus Auspex Pharmaceuticals (NASDAQ: ASPX), Cara Therapeutics (NASDAQ: CARA), Egalet (NASDAQ: EGLT), Flexion Therapeutics (NASDAQ: FLXN) and Ultragenyx Pharmaceutical (NASDAQ: RARE) are among the (many�� planned biotech IPOs that have recently been announced publicly:

• [By John Udovich]

  So far this year, Rexahn Pharmaceuticals, Inc (NYSEMKT: RNN), Imprimis Pharmaceuticals Inc (NASDAQ: IMMY) and Arrowhead Research Corp (NASDAQ: ARWR) are up 186.3%, 157.2% and 142.5%, respectively, since the start of the year���making them the best performing small cap biotech stocks for 2014. But given their lackluster performance over the past few years, what is the secret behind their phenomenal 2014 rise and will they keep rising? For starters, none of these small caps have really produced anything in the way of blockbuster news:

Top Cheapest Stocks To Buy Right Now: Mast Therapeutics Inc (MSTX)

Mast Therapeutics, Inc., formerly ADVENTRX Pharmaceuticals, Inc., incorporated in December 1995, is a development-stage company biopharmaceutical company focused on developing product candidates. The Company's product candidate is ANX-188, a rheologic, antithrombotic and cytoprotective agent that improves microvascular blood flow and has application in treating a range of diseases and conditions, such as complications arising from sickle cell disease. As of December 31, 2011, the Company also is developing ANX-514, a detergent-free formulation of the chemotherapy drug docetaxel. The Company offers ANX-188 (purified poloxamer 188), ANX-514 (docetaxel for injectable emulsion) and Exelbine (vinorelbine injectable emulsion). In April 2011, the Company acquired SynthRx, Inc. In February 2014, Mast Therapeutics Inc completed its acquisition of Aires Pharmaceuticals, Inc. Aires became a wholly-owned subsidiary of Mast Therapeutics.

ANX-188 (purified poloxamer 188)

ANX-188 is an aqueous solution of a purified form of poloxamer 188. Poloxamer 188 (P1880, is a nonionic, block copolymer that has been found to improve microvascular blood flow by reducing viscosity, particularly under low shear conditions, and by reducing adhesive frictional forces. The Company�� purified form of P188 (purified P188), which is the active ingredient in ANX-188, was designed to eliminate certain low molecular weight substances present in P188 (non-purified), which is primarily responsible for the moderate to moderately severe elevations in serum creatinine levels (acute renal dysfunction) observed in prior clinical studies of P188 (non-purified). Purified P188 has been evaluated in multiple clinical studies by a prior sponsor, including a 255-patient, phase III study.

ANX-514 (docetaxel for injectable emulsion)

ANX-514 is a detergent-free emulsion formulation of docetaxel, an intravenously-injected chemotherapy drug commonly used to treat solid tumors. Taxotere, a branded form! ulation of docetaxel, is approved to treat breast, non-small cell lung, prostate, gastric, and head and neck cancers. ANX-514 was designed to have clinically comparable release of docetaxel relative to Taxotere while eliminating the presence of polysorbate 80 and ethanol, both of which are used to solubilize docetaxel in the Taxotere formulation. The ANX-514 formulation solubilizes docetaxel using oil droplets consists of a combination of non-toxic excipients. Docetaxel is contained within these oil droplets and can be administered intravenously without using detergents as pharmaceutical vehicles. Once in central circulation, the emulsion is metabolized rapidly, leaving chemically-identical active ingredient to exert its cytotoxic effect. ANX-514 may reduce the incidence and severity of hypersensitivity reactions and delay the onset of fluid retention.

Exelbine (vinorelbine injectable emulsion)

Exelbine is an emulsion formulation of the chemotherapy drug vinorelbine. Navelbine, a branded formulation of vinorelbine, is approved in the United States to treat advanced non-small cell lung cancer as a single agent or in combination with cisplatin, and approved in the European Union to treat non-small cell lung cancer and advanced or metastatic breast cancer.

In August 2011, the Company received a complete response letter from the Food and Drug Administration (FDA) stating that it could not approve the Exelbine Non Disclosure Agreement (NDA) in its present form and that the bioequivalence study would need to be repeated because the authenticity of the drug products used in the bioequivalence trial could not be verified in accordance with FDA standards. However, the Company elected to discontinue independent development of Exelbine and as of December 31, 2011, the Company was seeking a partner or outside investor for the program to complete the necessary bioequivalence study.

The Company competes with GlaxoSmithKline, Provenge and Pfizer.

Advisors' Opinion:

• [By John Udovich]

  The start of 2014 shows that biotech is still a hot area with the sector along with small cap biotech stocks like AMAG Pharmaceuticals, Inc (NASDAQ: AMAG), Mast Therapeutics Inc (NYSEMKT: MSTX), Cell Therapeutics Inc (NASDAQ: CTIC), Imprimis Pharmaceuticals Inc (NASDAQ: IMMY) and TNI BioTech (OTCMKTS: TNIB) producing news or returns�plus Auspex Pharmaceuticals (NASDAQ: ASPX), Cara Therapeutics (NASDAQ: CARA), Egalet (NASDAQ: EGLT), Flexion Therapeutics (NASDAQ: FLXN) and Ultragenyx Pharmaceutical (NASDAQ: RARE) are among the (many�� planned biotech IPOs that have recently been announced publicly:

Top Medical Companies To Invest In 2014: NeoStem Inc (NBS)

NeoStem, Inc., incorporated on September 18, 1980, operates in cellular therapy industry. Cellular therapy addresses the process by which new cells are introduced into a tissue to prevent or treat disease, or regenerate damaged or aged tissue, and consists of a separate therapeutic technology platform in addition to pharmaceuticals, biologics and medical devices. The Company�� business model includes the development of novel cell therapy products, as well as operating a contract development and manufacturing organization (CDMO) providing services to others in the regenerative medicine industry. Progenitor Cell Therapy, LLC, the Company�� wholly owned subsidiary (PCT), is a CDMO in the cellular therapy industry. PCT has provided pre-clinical and clinical current Good Manufacturing Practice (cGMP) development and manufacturing services to over 100 clients advancing regenerative medicine product candidates through rigorous quality standards all the way through to human testing.

PCT has two cGMP, cell therapy research, development, and manufacturing facilities in New Jersey and California, serving the cell therapy community with integrated and regulatory compliant distribution capabilities. Its core competencies in the cellular therapy industry include manufacturing of cell therapy-based products, product and process development, cell and tissue processing, regulatory support, storage, distribution and delivery and consulting services. The Company�� wholly-owned subsidiary, Amorcyte, LLC (Amorcyte) is developing its own cell therapy, AMR-001, for the treatment of cardiovascular disease. AMR-001 represents its clinically advanced therapeutic product candidate and enrollment for its Phase II PreSERVE clinical trial to investigate AMR-001's safety and efficacy in preserving heart function after a heart attack in a particular type of post Acute Myocardial Infarction (AMI) patients.

Through the Company�� subsidiary, Athelos Corporation (Athelos), the Company is collaborating w! ith Becton-Dickinson in early stage clinical development of a therapy utilizing T-cells, collaborating for autoimmune and inflammatory conditions, including but not limited to, graft vs. host disease, type 1 diabetes, steroid resistant asthma, lupus, multiple sclerosis and solid organ transplant rejection. The Company�� pre-clinical assets include its Very Small Embryonic Like (VSEL) Technology platform. The Company has basic research and development capabilities, manufacturing facilities on both the east and west coast of the United States.

Advisors' Opinion:

• [By Roberto Pedone]

  Another under-$10 biopharmaceutical player that's starting to trend within range of triggering a big breakout trade is Neostem (NBS), engages in the development of proprietary cell therapy products. This stock has been hit hard by the sellers during the last three months, with shares off by 22%.

  If you take a look at the chart for Neostem, you'll notice that this stock has recently spiked higher back above both its 50-day moving average at $6.41 and its 200-day moving average of $6.60 a share. This move has also pushed shares of NBS back above some near-term overhead resistance levels at $6.57 to $6.98 a share. That move is quickly pushing NBS within range of triggering another breakout trade above some key near-term overhead resistance.

  Market players should now look for long-biased trades in NBS if it manages to break out above some near-term overhead resistance at $7.22 a share with high volume. Look for a sustained move or close above that level with volume that hits near or above its three-month average action 327,514 shares. If that breakout triggers soon, then NBS will set up to re-fill some of its previous gap down zone from October that started just above $8 a share. If that that gap gets filled with volume, then NBS could easily tag its next major overhead resistance levels at $9 to $9.50 a share, or even its 52-week high at $9.89 a share.

  Traders can look to buy NBS off weakness to anticipate that breakout and simply use a stop that sits right below its 50-day moving average of $6.41 a share, or near more support at $6 a share. One can also buy NBS off strength once it takes out $7.22 a share with volume and then simply use a stop that sits a comfortable percentage from your entry point.

• [By Monica Gerson]

  NeoStem (NYSE: NBS) priced an underwritten public offering of 5,000,000 shares of common stock at an offering price of $7.00 per share. NeoStem shares dipped 9.44% to $7.10 in after-hours trading.

• [By John Udovich]

  From stem cell burgers to earnings reports, the stem cell industry and small cap players in it like NeoStem Inc (NASDAQ: NBS), International Stem Cell Corp (OTCMKTS: ISCO) and BioRestorative Therapies (OTCBB: BRTX) have been producing some news lately that has probably been overlooked by investors and traders alike given its August. Nevertheless, you might want to pay attention to the following stem cell news:

• [By Stock Investor]

  Back in April in my article titled, "Regenerative Medicine's Time Has Come", I covered two very interesting companies focused on this field: NeoStem Inc. (NBS) and Neuralstem Inc. (CUR).

Top Medical Companies To Invest In 2014: InVivo Therapeutics Holdings Corp (NVIV)

InVivo Therapeutics Holdings Corp., formerly Design Source, Inc., incorporated on April 2, 2003, is a development-stage company. The Company is developing and commercializing technologies for the treatment of spinal cord injuries. The Company develops biopolymer scaffolding devices for the treatment of spinal cord injuries. The biopolymer devices are designed to protect the damaged spinal cord from further secondary injury and promote neuroplasticity, a process where functional recovery can occur through the rerouting of signalling pathways to the spared healthy tissue.

The Company�� biopolymer-based devices are surgically implanted or injected into the lesion created during traumatic injury, or the primary injury. Additional applications of its platform technologies include the treatment for, spinal cord injury following tumor removal, peripheral nerve damage, and postsurgical treatment of any transected nerve. Its biocompatible scaffolding device for the treatment of acute spinal cord injury, is regulated as a Class III medical device by the Food and Drug Administration (FDA). The Company's biocompatible hydrogel is used for the local release of methylprednisolone to treat acute spinal cord injuries and the biocompatible polymer scaffolding device seeded with autologous human neural stem cells.

The Company�� porous biopolymer scaffold consists of polylactic-co-glycolic acid (PLGA) and-polylysine. PLGA is a biodegradable and biocompatible polymer, which is used for applications, such as surgical sutures (Dolphin sutures and Ethicon sutures), drug delivery (Lupron Depot and Sandostatin LAR Depot), and tissue engineering (Dermagraft). The PLGA-polylysine biopolymer scaffolding device is biocompatible and biodegradable and degrades naturally inside the body without requiring subsequent removal.

The Company focuses to develop an injectable hydrogel designed to counteract the inflammatory environment that results during a secondary injury from a closed-wound spi! nal cord injury where further cell death occurs. It focuses to counteract the pathophysiology of spinal cord injury by replacing lost cells of the spinal cord and activating endogenous regenerative processes, such as the formation of new synapses and axonal sprouting based on molecules the stem cells produce.

Advisors' Opinion:

• [By Bryan Murphy]

  I came close to pointing this out yesterday, but didn't pull the trigger. Though delaying didn't cost you or me more than a few cents, I don't want to tarry any longer... Invivo Therapeutics Holdings Corp. (OTCBB:NVIV) is a buy.

Top Medical Companies To Invest In 2014: Prima BioMed Ltd (PBMD)

Prima BioMed Ltd is a biotechnology company is engaged in the development and commercialization of medical therapies with a focus on oncology. Its product candidates in development include Cvac, an autologous dendritic cell vaccine for ovarian cancer, monoclonal antibodies for multiple tumour types, and an oral formulation for the human papilloma virus (HPV), vaccine. Its product candidate Cvac is a dendritic cell therapy, for which it is conducting a Phase IIb trial for the treatment of ovarian cancer. Cvac is designed to target the tumour antigen mucin-1, which is expressed at high levels on different tumour types. It also has two preclinical product development programs. In May 2011, Prima BioMed GmbH, a 100 % owned subsidiary of Prima BioMed Ltd, was incorporated in Germany. In May 2011, Prima BioMed Middle East FZLLC, a 100 % owned subsidiary of Prima BioMed Ltd, was incorporated in the United Arab Emirates. Advisors' Opinion:

• [By Monica Gerson]

  Prima Biomed (NASDAQ: PBMD) dropped 38.17% to $1.45 after the company reported top-line analysis of CVac Phase 2 trial.

  Tower Group International (NASDAQ: TWGP) plummeted 24.31% to $10.49. Tower Group announced its plans to release its Q2 results during the week of October 7, 2013. FBR Capital downgraded the stock from Outperform to Market Perform.

• [By Bryan Murphy]

  Were it the first time, or even the second time, it happened, it might be dismissible. A third time though? As they say, the third time is the charm. If the old saying applies in the worlds of small cap stocks (and it usually does), then Prima Biomed Ltd. (NASDAQ:PBMD) just kick-started what could be a trade-worthy rally.

Top Medical Companies To Invest In 2014: Boston Scientific Corp (BSX)

Boston Scientific Corporation is a developer, manufacturer and marketer of medical devices that are used in a range of interventional medical specialties. During the year ended December 31, 2011, its products were offered for sale by seven core businesses: Interventional Cardiology, CRM, Endoscopy, Peripheral Interventions, Urology/Women�� Health, Neuromodulation, and Electrophysiology. In January 2011, it completed the acquisition of Intelect Medical, Inc. In January 2011, it completed the acquisition of Sadra Medical, Inc. In March 2011, the Company completed the acquisition of Atritech, Inc. In February 2011, it announced the acquisitions of S.I. Therapies and ReVascular Therapeutics, Inc. In January 2011, the Company sold its Neurovascular business to Stryker Corporation. In June 2012, the Company acquired Cameron Health, Inc. of San Clemente, California and, as a result, added to its product portfolio subcutaneous implantable cardioverter defibrillator, called the S-ICD System.

Interventional Cardiology

The Company offers coronary stent product. Coronary stents are tiny, mesh tubes used in the treatment of coronary artery disease, which are implanted in patients to prop open arteries and facilitate blood flow to and from the heart. The Company offers a two-drug platform strategy with its paclitaxel-eluting and everolimus-eluting stent system offerings, and it offers a range of stent sizes. The Company markets its next-generation internally-developed and self-manufactured PROMUS Element stent system in the United States, its Europe/Middle East/Africa (EMEA) region and certain Inter-Continental countries, including China and India. It markets the PROMUS everolimus-eluting stent system, supplied to the Company by Abbott Laboratories, in Japan. It also markets its TAXUS paclitaxel-eluting stent line, including its third-generation TAXUS Element paclitaxel-eluting stent system in the U.nited States, Japan, EMEA and certain Inter-Continental countries.

The Compa! ny markets a line of products used to treat patients with atherosclerosis, a principal cause of coronary artery obstructive disease. Its product offerings include balloon catheters, rotational atherectomy systems, guide wires, guide catheters, embolic protection devices, and diagnostic catheters used in percutaneous transluminal coronary angioplasty (PTCA). The Company markets a family of intraluminal catheter-directed ultrasound imaging catheters and systems for use in coronary arteries and heart chambers, as well as certain peripheral vessels. The iLab Ultrasound Imaging System continues as its flagship console and is compatible with its line of imaging catheters. The system is designed to enhance the diagnosis and treatment of blocked vessels and heart disorders. Sadra is developing a repositionable and retrievable device for transcatheter aortic valve replacement (TAVR) to treat patients with severe aortic stenosis. The Lotus Valve System consists of a stent-mounted tissue valve prosthesis and catheter delivery system for guidance and placement of the valve. Atritech has developed a device designed to close the left atrial appendage in patients with atrial fibrillation who are at risk for ischemic stroke. The WATCHMAN Left Atrial Appendage Closure Technology, developed by Atritech, is the first device proven in a randomized clinical trial to offer an alternative to anticoagulant drugs, and is approved for use in CE Mark countries.

Cardiac Rhythm Management

The Company develops, manufactures and markets a variety of implantable devices that monitor the heart and deliver electricity to treat cardiac abnormalities, including Implantable cardioverter defibrillator (ICD) systems used to detect and treat abnormally fast heart rhythms (tachycardia) that could result in sudden cardiac death, including implantable cardiac resynchronization therapy defibrillator (CRT-D) systems used to treat heart failure, and implantable pacemaker systems used to manage slow or irregular heart rhyth! ms (brady! cardia), including implantable cardiac resynchronization therapy pacemaker (CRT-P) systems used to treat heart failure. Its product offerings include its COGNIS cardiac resynchronization therapy defibrillator (CRT-D), its TELIGEN ICD systems and its ALTRUA family of pacemaker systems. During 2011, it began the United States launch of its next-generation line of defibrillators, INCEPTA, ENERGEN and PUNCTUA.

Endoscopy

The Company markets a range of products to diagnose, treat and ease a variety of digestive diseases, including those affecting the esophagus, stomach, liver, pancreas, duodenum, and colon. Common disease states include esophagitis, portal hypertension, peptic ulcers as well as esophageal, biliary, pancreatic and colonic cancer. The Company offers the Radial Jaw 4 Single-Use Biopsy Forceps, which are designed to enable collection of large high-quality tissue specimens without the need to use large channel therapeutic endoscopes. Its exclusive line of RX Biliary System devices are designed to provide greater access and control for physicians to diagnose and treat challenging conditions of the bile ducts, such as removing gallstones, opening obstructed bile ducts and obtaining biopsies in suspected tumors. The Company also markets the Spyglass Direct Visualization System for direct imaging of the pancreatico-biliary system. The Spyglass System is a single-operator cholangioscopy device that offers clinicians a direct visualization of the pancreatico-biliary system and includes supporting devices for tissue acquisition, stone management and lithotripsy. Its products also include the WallFlex family of stents, in particular, the WallFlex Biliary line and WallFlex Esophageal line; and in 2011, the Company launched its Advanix Biliary Plastic Stent System and the Expect Endoscopic Ultrasound Aspiration Needle in the United States and certain international markets. Its Resolution Clip Device is an endoscopic mechanical clip designed to treat gastrointestinal bleeding.

T! he Company markets devices to diagnose, treat and ease pulmonary disease systems within the airway and lungs. Its products are designed to help perform biopsies, retrieve foreign bodies from the airway, open narrowings of an airway, stop internal bleeding, and ease symptoms of some types of airway cancers. Its product line includes pulmonary biopsy forceps, transbronchial aspiration needles, cytology brushes and tracheobronchial stents used to dilate narrowed airway passages or for tumor management. Asthmatx, Inc. designs, manufactures and markets a less-invasive, catheter-based bronchial thermoplasty procedure for the treatment of severe persistent asthma. The Alair Bronchial Thermoplasty System, developed by Asthmatx, has both CE Mark and Food and Drug Administration (FDA) approval and is the first device-based asthma treatment approved by the FDA.

Peripheral Interventions

The Company sells various products designed to treat patients with peripheral disease, including a line of medical devices used in percutaneous transluminal angioplasty and peripheral vascular stenting. Its peripheral product offerings include stents, balloon catheters, wires, peripheral embolization devices and vena cava filters. In 2010 and 2011, it launched several of its products internationally, including the EPIC self-expanding nitinol stent system in certain international markets, and the Carotid WALLSTENT stent system in Japan. The Company launched three new peripheral angioplasty balloons in 2011, including its next-generation Mustang percutaneous transluminal angioplasty (PTA) balloon, its Coyote balloon catheter, a highly deliverable and ultra-low profile balloon dilatation catheter designed for a range of peripheral angioplasty procedures and its Charger PTA Balloon Catheter, a 0.035 inch percutaneous transluminal angioplasty balloon catheter designed for post-stent dilatation, as well as conventional balloon angioplasty to open blocked peripheral arteries. The Company has commenced a limited ma! rket rele! ase of its OFFROAD re-entry catheter system in certain international markets, and in February 2012, it launched its TRUEPATH intraluminal CTO device in the United States.

The Company sells products designed to treat patients with non-vascular disease. Its non-vascular suite of products include biliary stents, drainage catheters and micro-puncture sets designed to treat, diagnose and ease various forms of benign and malignant tumors. The Company continues to market its extensive line of Interventional Oncology product solutions, including the Renegade HI-FLO Fathom microcatheter and guidewire system and Interlock - 35 Fibered IDC Occlusion System for peripheral embolization. The Company�� FilterWire EZ Embolic Protection System is a filter designed to capture embolic material that may become dislodged during a procedure, which could otherwise travel into the microvasculature where it could cause a heart attack or stroke. It is commercially available in the United States, its EMEA region and certain Inter-Continental countries for multiple indications, including the treatment of disease in peripheral, coronary and carotid vessels. It is also available in the United States for the treatment of saphenous vein grafts and carotid artery stenting procedures.

Urology/Women�� Health

The Company�� Urology/Women�� Health division develops, manufactures and sells devices to treat various urological and gynecological disorders. The Company sells a variety of products designed to treat patients with urinary stone disease, stress urinary incontinence, pelvic organ prolapse and excessive uterine bleeding. The Company offers a line of stone management products, including ureteral stents, wires, lithotripsy devices, stone retrieval devices, sheaths, balloons and catheters.

The Company markets a range of devices for the treatment of conditions, such as female urinary incontinence, pelvic floor reconstruction (rebuilding of the anatomy to its original state), and ! menorrhag! ia (excessive menstrual bleeding). It offers a breadth of mid-urethral sling products, sling materials, graft materials, pelvic floor reconstruction kits, and suturing devices. The Company markets its Genesys Hydro ThermAblator (HTA) system, a next-generation endometrial ablation system designed to ablate the endometrial lining of the uterus in premenopausal women with menorrhagia. The Genesys HTA System features a smaller and lighter console, simplified set-up requirements, and an enhanced graphic user interface and is designed to improve operating performance.

Neuromodulation

The Company within its Neuromodulation business markets the Precision Spinal Cord Stimulation (SCS) system, used for the management of chronic pain. In 2011, the Company launched its Clik Anchor for its Precision Plus SCS System, a rechargeable SCS device for chronic pain management. During 2011, it received FDA approval for and launched the Infinion 16 Percutaneous Lead, a 16-contact percutaneous lead. The Company also markets the Linear 3-4 and Linear 3-6 Percutaneous Leads for use with its SCS systems, which are designed to provide physicians more treatment options for their chronic pain patients. Intelect Medical, Inc. is a development-stage company developing advanced visualization and programming for the Vercise system.

Electrophysiology

The Company within its Electrophysiology business develops less-invasive medical technologies used in the diagnosis and treatment of rate and rhythm disorders of the heart. Included in its product offerings are radio frequency (RF) generators, steerable RF ablation catheters, intracardiac ultrasound catheters, diagnostic catheters, delivery sheaths, and other accessories. Its products include the Blazer and Blazer Prime line of temperature ablation catheters, designed to deliver enhanced performance, responsiveness, and durability. Its cooled ablation portfolio includes the closed-loop irrigated catheter on the market, the Chilli II cooled! ablation! catheter, and the newly launched Blazer Open-Irrigated ablation catheter with a Total Tip Cooling Design.

The Company competes with Abbott Laboratories, Medtronic, Inc., St. Jude Medical, Inc. and Johnson & Johnson.

Advisors' Opinion:

• [By Dimitra DeFotis]

  Colleague Dave Englander recommended taking profits in another medical device maker, Boston Scientific (BSX) in mid-August. At the time, he noted that stock was up 107% since his favorable recommendation had appeared, outpacing the Standard & Poor’s 500 Index by 80 points. He noted Boston Scientific faces competition from St. Jude and Medtronic (MDC), and he said that the market for stents and defibrillators has stabilized but is “not likely to grow meaningfully.” �(See “Time to Sell These Winners,” Aug. 14, subscription required.)

• [By Dan Caplinger]

  Right out of the gate, Abbott found some success, getting FDA approval for its XIENCE Xpedition drug-eluting stent. The stent market could prove increasingly important for Abbott going forward, as its Absorb line of products moves through clinical trials. Boston Scientific (NYSE: BSX  ) has a competing product, its Synergy line, which looks like the only potential roadblock for Abbott to capture first-mover status in bioresorbable stents.

• [By Dan Carroll]

  Investors have gotten their money's worth out of Boston Scientific's (NYSE: BSX  ) stock lately. Shares of the medical device maker have surged by more than 30% in the past six months alone, rising higher despite the company's troubles. Sales have fallen into a slump at Boston Scientific, led lower by the company's cardiac rhythm management, or CRM, business, which produces everything from pacemakers to implantable defibrillators. This is an industry on the decline�--�Medtronic (NYSE: MDT  ) , a leader in the medical device field, has seen its own CRM sales slump in recent quarters, while Boston Sci rival St. Jude Medical (NYSE: STJ  ) has similarly had its top line hammered by its CRM division's falling revenue.

• [By Keith Speights]

  Another avenue for employers -- large or small -- to minimize added costs from Obamacare is to ship the jobs abroad. The health reform legislation doesn't require companies to provide health coverage for employees outside the U.S. Boston Scientific (NYSE: BSX  ) is one employer that, in addition to cutting jobs because of the new medical device tax, is also moving some operations to China.

Show us your car: GM's Chevrolet Corvair

CATHEDRAL CITY, Calif. -- As General Motors soldiers through recalls involving deadly ignition switches, it's worthwhile to look back at one of the cars that gave America's largest automaker a bad reputation in its heyday.

It's the Chevrolet Corvair of the early 1960s, and now with decades having passed and many chances for reassessment, the car has a slew of defenders who think that it got a bad rap. One is Patrick Croan of Temecula, Calif., who we came across last month at the Desert Classic Concours d'Elegance.

at a golf course here.

MORE:Chevrolet adds 970,700 cars to ignition switch recall

MYSTERY:Chevrolet orders halt to Cruze deliveries, won't say why

The Corvair was the compact that propelled Ralph Nader to fame. The attorney wrote a scathing book, Unsafe At Any Speed, in 1965 in which he went through a litany of ways that cars are unsafe -- from lack of restraint systems to unpadded dashboards. A starring example was the hapless Corvair, a car with a rear-engine design and swing-arm suspension that he alleged was prone to spinning out of control. The Corvair had been around for about five or six years when the book came out, and although it would stay in production for another four, the sullied image of the formerly carefree car never recovered.

None of that bothers Croan. His family owned a Corvair, and he says he made a coast-to-coast trip in the car as a boy . Five people crammed in the small car made the trip, including spending nights sleeping in it along the way. For Croan, it was bliss. "It was really a great experience," he says.

About 11 years ago, Croan yearned for a Corvair. So he bought the 1962 model from an owner that never quite got around to restoring it. It came in boxes. About five years later, Croan had put the car back into basic shape. But he didn't stop there. Almost as if to underscore his confidence in its safety, he souped it up.

"I have a need for speed," he explains.

Today, it's a dream car. And despite all of GM's! sea of troubles, Corvair nostalgia lives on.

6 Ways to Freshen Up Your Finances

Alamy Spring has arrived, and so has the inevitable seasonal cleaning duties. In addition to packing away the winter clothes, washing windows and cleaning out the fridge, spring is the perfect time to evaluate your financial situation and tidy up your budget, bank accounts, debts and investments. Here are six ways to spruce up your finances: 1. Refresh your budget. If you've been promoted, transitioned from two incomes to one or are starting a family, this is the perfect time to revisit your household budget. Consider using online personal finance tools to help you set a budget and keep track of your accounts. You'll see where your money is going and can adjust spending where needed to help you attain your financial goals. 2. Pay off holiday debt once and for all. Clear up your credit lines, and pay off the purchases you made over the holiday season. Put yourself on a stricter debt payoff plan specifically to pay off the debt you accumulated over the holidays. Cleaning up this debt quickly will put you in a much better financial position for the rest of the year. It's easy to fall back in to debt, so put a plan in place while you're at it to maintain a zero balance. 3. De-clutter your countertops and go paperless. A good way to cut down on clutter is to opt for electronic bill payments. It decreases the amount of print mail and can even help prevent identity theft. Secure your online bill payment with strong passwords that you change on a regular basis. Signing up for a vendor's online automatic pay system (helpful for fixed-payment bills such as cable and Internet) allows you to set up payments as "recurring" so the bills are automatically paid. This can help you avoid forgetting to pay a bill, and it keeps countertops paper-free. 4. Clean up your credit score. Boosting your credit score is always important, but before you do, it's imperative to learn about your credit history and the various accounts that affect it. To make sure your credit report is free of errors, get a free credit report (you're entitled to one free copy from the three credit bureaus every year). Check for any errors or accounts listed that aren't yours. Companies do make mistakes, and it's your responsibility to make corrections when you catch them, so your credit score isn't accidentally lowered. 5. Set up an emergency fund. Life is full of unexpected surprises. A car repair, illness or unemployment can catch you and your family off guard and leave you financially stranded. When the unexpected happens, it's important to have a stash of cash set aside in an emergency fund. At a minimum, it should hold three months worth of your living expenses. If you pay $2,000 a month to cover the basics such as housing, utilities and food, then put aside $6,000 in your emergency fund. If you have dependents, your emergency fund should consist of six months of your living expenses. 6. Dust off your financial statements. Review your bank and credit card statements as well as bills to make sure you're not being charged fees you don't recognize or paying for subscriptions or services you never use. This is also a great time to look at your insurance policies. Some personal finance tools expose fees that are often hidden on statements or buried in the fine print to help you eliminate unnecessary fees and save more money. Whether it's putting money aside to pay down debt, planning for the future or just getting organized, the changing season is a great time to change up your financial habits.

Despite Their Financial Power, Women Save Less Than Men: Merrill

Women tend to save less for retirement than men, despite the fact that women now enjoy more financial power than ever.  Thirty-six percent of all U.S. businesses are owned or led by women, according to newly released findings by Merrill Lynch.

Merrill cites a number of sources — including the National Women’s Business Council for the aforementioned statistic — to conclude that women should start saving more. Merrill also cites stats by The World Bank, which predicts that women’s earnings globally will reach $18 trillion by 2014.

According to the U.S. Census Bureau, the current life expectancy for a woman is 80.5 years, while it’s 75.5 years for a man, Merrill states. “While longevity continues to increase for both sexes, the U.S. government projects that the longevity gap between men and women will exist for the foreseeable future,” Merrill notes.

That longer life expectancy means that women may need more income than men do to last through their retirement years.

“Despite their growing economic might, women still have a more difficult road to a secure retirement than men,” notes Debra Greenberg, director of IRA product management at Bank of America Merrill Lynch.

Hurdles, she says, are that women still make 80 cents for every dollar earned by men and that they are much more likely to interrupt their careers to care for a child or a parent, which can result in a reduction in both wages and Social Security benefits.

Other retirement hurdles include divorce, which tends to have a bigger financial impact on women than on men.

Merrill cites a study by Duke University and Indiana University titled “Losers and Winners: The Financial Consequences of Separation and Divorce for Men,” which showed that in the wake of a divorce, women’s household income fell 26%, compared with 15% for men.

The good news: armed with an understanding of both your retirement needs and present opportunities to invest and save, there are a number of steps women can take to overcome these retirement challenges.

Living longer often means more medical bills: Merrill cites findings by The Employee Benefit Research Institute, which found that a female retiree of 65 may need an average of $242,000 in savings for health care, insurance and other health expenses (if she has no company, military or union plan).

“Many people assume that health insurance and Medicare will pay for assisted living or a nursing home, but that’s usually not the case,” states Merrill. “For that reason, it’s usually smart to consider purchasing long-term care insurance.”

Merrill notes that if women think there’s a possibility that they may temporarily downscale or step away from the work force at some point, it may make sense to prepare for that well in advance. “If possible, make the maximum contribution to your workplace retirement plan. If you are eligible, funnel additional funds into a traditional or Roth IRA.”

Greenberg suggests that if a woman can’t contribute to a deductible IRA because of her income level or coverage by an employer-provided retirement plan, consider a nondeductible IRA. “You’ll have to fund it with after-tax dollars and potentially pay taxes on withdrawals in retirement,” she says. “Thanks to compounded growth, spending a little less while you’re younger can help to significantly boost your retirement stash. Go through your monthly bills and identify places where you can cut back. Almost everybody can find that extra $50 a month somewhere.”

Rep. Upton: Why didn't rules catch GM problem?

WASHINGTON — U.S. House Energy and Commerce Committee Chairman Fred Upton has a pretty straightforward goal heading into Tuesday's hearing on General Motors' recall of 1.6 million cars.

He wants to know why the regulations in place didn't catch the problems earlier.

Upton, after all, was the prime sponsor of the legislation that back in 2000 required the U.S. Department of Transportation to write regulations standardizing reporting of fatal crashes and other information to the National Highway Traffic Safety Administration.

Those regulations are in place: The question now is whether they are strong enough -- or being applied effectively enough -- to catch potentially deadly defects as early as they should.

"We were very surprised with the revelations that came forward the last couple of weeks," Upton, R-Mich, said Thursday. "We'll see where it takes us. ... We're going to see what the time line really was. Who tried to connect the dots and why they weren't connected."

In a way, Tuesday's hearing by the House Oversight and Investigation Subcommittee marks a return full circle for the genial, unaffected Upton, who was that subcommitee's chairman in 2000 when it investigated the failure of Firestone tires that were linked to some 270 deaths and 700 injuries, mostly in Ford vehicles.

Out of those investigations came the Transportation Recall Enhancement, Accountability and Documentation (TREAD) Act. It was supposed to ensure that automakers gave regulators the safety information they needed in a timely manner and that the regulators put it to good use.

But in the GM recall case, there are indications that the company knew about potential ignition problems all the way back to 2001. And federal regulators had conducted several investigations but never pushed the company to recall the vehicles, in which GM now says the ignition switch potentially can be jostled out of the "run" position, shutting off the engine and disabling the airbags.

There also had been hund! reds of complaints about the switches over the years. GM has linked the defect to 12 deaths and 31 crashes.

Upton, now the full committee chairman, was on his way home to the southwestern Michigan district he's represented since 1987 on Thursday and said he'd spend the weekend going over with staff what more than 5,000 pages of documents supplied by GM on the recall condition tells investigators.

Even more was expected from NHTSA in advance of Tuesday's hearing, where GM CEO Mary Barra and NHTSA's Acting Administration, David Friedman, are scheduled to testify. Upton couldn't say whether there would be more hearings or not -- or whether other GM officials or regulators could be called to testify -- but he wasn't ruling it out either.

"I don't know what the response is going to be. Those questions are going to get asked on Tuesday," he said. "We don't have any predisposed conclusions on where this is going."

"Everything," he said, "is on the table. We're going to find out the answers as we should."

Rep. Upton: Why didn't rules catch GM problem?

WASHINGTON — U.S. House Energy and Commerce Committee Chairman Fred Upton has a pretty straightforward goal heading into Tuesday's hearing on General Motors' recall of 1.6 million cars.

He wants to know why the regulations in place didn't catch the problems earlier.

Upton, after all, was the prime sponsor of the legislation that back in 2000 required the U.S. Department of Transportation to write regulations standardizing reporting of fatal crashes and other information to the National Highway Traffic Safety Administration.

Those regulations are in place: The question now is whether they are strong enough -- or being applied effectively enough -- to catch potentially deadly defects as early as they should.

"We were very surprised with the revelations that came forward the last couple of weeks," Upton, R-Mich, said Thursday. "We'll see where it takes us. ... We're going to see what the time line really was. Who tried to connect the dots and why they weren't connected."

In a way, Tuesday's hearing by the House Oversight and Investigation Subcommittee marks a return full circle for the genial, unaffected Upton, who was that subcommitee's chairman in 2000 when it investigated the failure of Firestone tires that were linked to some 270 deaths and 700 injuries, mostly in Ford vehicles.

Out of those investigations came the Transportation Recall Enhancement, Accountability and Documentation (TREAD) Act. It was supposed to ensure that automakers gave regulators the safety information they needed in a timely manner and that the regulators put it to good use.

But in the GM recall case, there are indications that the company knew about potential ignition problems all the way back to 2001. And federal regulators had conducted several investigations but never pushed the company to recall the vehicles, in which GM now says the ignition switch potentially can be jostled out of the "run" position, shutting off the engine and disabling the airbags.

There also had been hund! reds of complaints about the switches over the years. GM has linked the defect to 12 deaths and 31 crashes.

Upton, now the full committee chairman, was on his way home to the southwestern Michigan district he's represented since 1987 on Thursday and said he'd spend the weekend going over with staff what more than 5,000 pages of documents supplied by GM on the recall condition tells investigators.

Even more was expected from NHTSA in advance of Tuesday's hearing, where GM CEO Mary Barra and NHTSA's Acting Administration, David Friedman, are scheduled to testify. Upton couldn't say whether there would be more hearings or not -- or whether other GM officials or regulators could be called to testify -- but he wasn't ruling it out either.

"I don't know what the response is going to be. Those questions are going to get asked on Tuesday," he said. "We don't have any predisposed conclusions on where this is going."

"Everything," he said, "is on the table. We're going to find out the answers as we should."

America's 10 Most Popular Cars

There is more than one way to look at how popular car models are. The most traditional is monthly and annual sales. This list has been dominated by full-sized pickups, such as the Ford Motor Co. (NYSE: F) F-150, and fuel-efficient, inexpensive cars like the Toyota Motor Corp. (NYSE: TM) Camry. Another measure of vehicle popularity is which vehicles people search for online. Since at least some portion of people who go to cars sites plan to buy, search volume and intent likely lead to real sales sometimes.

One notable thing about actual unit sales and number of online searches for vehicles is that sales and searches do not always match. Some of the most searched vehicles were not among the top 20 selling vehicles in February at all.

Edmunds, the car research site, keeps records of search volume by vehicle. The most recent figures, which cover the top 50 most recent cars, SUVs and light trucks, cover the month of February.

Here is a look at the Edmunds top 10 and its comments on each.

1. Honda Motor Co. Ltd. (NYSE: HMC) Accord. “The 2014 Honda Accord earns top honors in the midsize sedan class with its mix of excellent packaging, superb fuel economy and rewarding performance.” The Accord was the eighth best-selling vehicle in the United States in February at 23,712. But its sales dropped 16% from February 2013.

2. Honda CR-V. “Roomy, fuel-efficient and loaded with family-friendly features, the 2014 Honda CR-V is our top choice among compact crossover SUVs.” The 13th best-selling car in February at 20,759, roughly flat from the same month last year.

3. Toyota Highlander. “With more room for people and their things, the 2014 Toyota Highlander remains an excellent choice for a do-all family vehicle.” Not among the top 20 cars based on sales in February.

4. Jeep Grand Cherokee. “If you want a midsize SUV that does a little of everything, the 2014 Jeep Grand Cherokee is tough to beat. Its well-trimmed cabin is comfy for five, and it can handle a daily commute as easily as it does an off-road trail.” Also not among the top 20 best-selling cars.

5. Mazda CX-5.”In many ways, the 2014 Mazda CX-5 is quite a conventional compact crossover. However, its sharp styling and engaging driving experience set it apart from the pack.” Another not among the top 20 best-selling cars in February.

6. Subaru Forester. “A full redesign brings better fuel efficiency as well as greater interior room and refinement for the 2014 Subaru Forester. It’s a top pick for a small to midsize crossover SUV.” Yet another car not among the 20 best sellers last month.

7. Mazda MAZDA3. “Purposeful styling, fuel-efficient engines and an ideal ride and handling balance keep the 2014 Mazda 3 among the favorites in the compact car class.” One more not among the top 20.

8. Honda Civic. “Honda has made another major round of improvements to the Civic for 2014. As a result, the 2014 Honda Civic is one of the best compact cars you can buy.” The 12th best-selling vehicle in February, with sales of 21,575, down 5% from the same month in 2013.

9. Ford Escape. “The 2014 Ford Escape is one of our favorite small crossover utility vehicles, thanks to athletic driving dynamics, an inviting cabin and useful high-tech features.” The ninth best-selling car last month, with 23,145 in sales, down 4%.

10. Ford F-150. “America’s top-selling pickup is offered in a substantial array of trims and powertrains to accommodate all manner of towing, hauling or off-road needs.” The longtime sales champion among American vehicles, with February units of 55,882, up 3% from the same month a year earlier

To show sales and searches are not completely disconnected: popular cars on the 11th through 20th spots on the Edmunds search list do include vehicles that were in the top 20 in actual sales in February. Among these were the Toyota RAV4, Toyota Camry and Ford Fusion.

GM dealers scramble to provide recall loaners

All Steve Isola wanted was to take up General Motors on its offer of a free rental car until the automaker could make recall repairs on his 2007 Chevrolet Cobalt. But neither his local dealer nor GM has been able to give him one.

GM says it's had 9,000 requests such as Isola's, and it intends that they all be honored. But sometimes the best intentions don't mesh with practical reality.

Dwayne Haapanen, general manager at Kolar Chevrolet in Hermantown, Minn., near Duluth, says customers have parked nine of the recalled models at the dealership, refusing to drive them until they are fixed.

But it's taken awhile to get rental cars for Isola and three other customers; Haapanen believes he'll have them all "squared away" by Thursday. "There's been a bit of a struggle finding the cars. I burned up all my loaner fleet, and we've been renting from Enterprise — and now they are out of cars."

Such are the rough edges of General Motors' recall of 1.62 million cars worldwide that need new ignition switches installed to prevent the kinds of accidents blamed for 12 deaths. The switches can jostle out of the "run" position into "accessory," shutting off the engine and killing power to the air bags and other safety systems.

GM CEO Mary Barra told a group of reporters in Detroit on March 18 that GM has told dealers to give any owner of a recalled model a free loaner vehicle if requested. Owners don't have to prove their switches are faulty or that they've been in accidents to qualify, GM says.

"Yes. Yes!" GM global product development chief Mark Reuss said, pounding the table for emphasis during the session, when asked if GM is paying all the costs of loaner or rental cars for dealers to furnish.

In a rare move, GM even told dealers they can break the rule of using only GM rental cars, if need be, to supply all owners. It also said it is making special arrangements for college-age customers who might otherwise have trouble renting, and has enlisted multiple rental car agencies! for the loaners.

Isola was in a jam. His daughters won't let their kids ride in his Cobalt. And when he called the GM recall hotline, no one would help. He says he got really "ticked off" when the representative denied him a rental car, saying GM "can't provide that to everyone."

He says he replied: "I'm not everybody. I'm a Cobalt owner with a safety concern. I am not some crackpot."

Despite the loaner scramble, Haapanen says he's impressed by the steps GM has taken. "I am encouraged GM is stepping up right from Day One."

Still, it has taken more than saying it should be so.

GM has created a dedicated hotline for recall questions and has added staffing and is providing training, hoping to prevent long waits for callers — and wrong answers, such as Isola initially got.

GM says dealers should have the first batch of new switches April 7 to begin recall repairs — but that will be just 60,000 of them. Barra told reporters that the company has an October goal for completing the job.

"It's a mixed bag," says Aaron Jacoby, who specializes in dealer issues as head of the automotive practice of Arent Fox, a law firm. "It's not that dealers are entirely unhappy there is a GM recall," he says, because it's a chance to woo new patrons when they bring in their cars for recall repairs, and they will make money doing the recall work. But they also don't want disappointed customers whose expectations exceed the reality of the recall pace.

Some dealers aren't having problems. At Len Lyall Chevrolet in Aurora, Colo., for instance, General Manager Dan Johnson says he's had only one request for a rental car. But he's had to put two of the used cars in his inventory — a Chevrolet Cobalt and HHR, both on the recall list — "out back" until recall repairs are complete.

GM spokesman Greg Martin says, "Dealers should ensure all recall repairs are performed on a vehicle before it is loaned, rented or sold," as Lyall Chevrolet is doing, to be sure the temporary vehic! les aren'! t themselves under recall.

"We will work overtime," Johnson pledges. "We will do what we need to do" — and if he can throw in a free oil change to keep owners of recalled models coming back, or "trade for a few cars," so much the better.

GM and federal safety officials both emphasize that owners should detach the ignition key from their key rings and use the key by itself. Heavy key rings make it easier for the ignition switch to malfunction.

Most of the recalled vehicles — 1.37 million — are in the U.S. They are:

2005-07 Chevrolet Cobalt2007 Pontiac G52003-07 Saturn Ion2006-07 Chevrolet HHR2006-07 Pontiac Solstice2007 Saturn Sky.

Hotline numbers for owners to call for recall information:

Chevrolet: 800-222-1020Pontiac: 800-762-2737Saturn: 800-553-6000

Contributing: James R. Healey

A Taxing Proposition

A friend of mine recently had $5,000 he wanted to invest, and asked what I thought about Emerge Energy Services (NYSE: EMES). He wasn't familiar with how master limited partnerships are structured, or with the tax implications of investing in an MLP. With the tax season upon us, many of you are dealing with these issues right now. Some of you may be considering your first MLP. But you need to be sure you understand the trade-offs associated with MLP investing.

The first MLP was formed by Apache Oil Company in 1981. In 1987 Congress legislated the rules for publicly traded partnerships in Internal Revenue Code Section 7704. The rules state that at least 90 percent of an MLP's income must come from qualified sources, such as real estate or natural resources. Section 613 of the tax code requires qualifying energy sources to be depletable resources or their derivatives such as crude oil, petroleum products, natural gas and coal.

Recent case-by-case Internal Revenue Service rulings have expanded the range of activities qualifying for MLP treatment. The MLP Parity Act — which I discussed in Is MLP Parity Act a Game Changer? — would further expand the definition of "qualified" sources to projects involving wind and solar power, as well as closed and open loop biomass, geothermal, municipal solid waste, hydropower, marine, fuel cells, and combined heat and power.

MLPs and Taxes

An MLP issues units rather than shares, and MLPs aren't taxed at the corporate level. MLPs pass profits directly to unitholders in the form of quarterly distributions. This arrangement avoids the double taxation of corporate income and dividends affecting traditional corporations and their shareholders and, all things being equal, should deliver more money to unitholders.

But the distributions aren't fully taxed either. Because of the depreciation allowance, 80 to 90 percent of the distribution is cons! idered a "return of capital" and thus not taxable when received. Instead, returns of capital reduce the cost basis of an investment in the MLP.

The rest of the distribution — typically 10 to 20 percent — is taxed at the recipient's income tax rate. But being able to defer the rest of the tax until the investment is sold is an advantage, since the income can be reinvested to generate compound returns that could more than pay for the eventual tax bill.

When you ultimately sell the units or the cost basis drops to zero, a portion of the capital gain is taxed at the special long-term capital gains tax rate, and the remainder at your normal income tax rate.

MLPs issue Schedule K-1 forms instead of the 1099 forms you may receive from a corporation, and the K-1 will reflect your share of the taxable income. Partnerships are not required to report their results until the April 15 following the calendar year-end. Most K-1′s are issued between late February and early April, which could certainly delay a tax return. You may not have to file for an extension, but you also may not be able to file before March.

The other thing to understand about MLPs and taxes is that the K-1 package will include a state schedule. This schedule details the MLP's share of income or loss attributed to each state in which it operates. For example, a pipeline may cut across 5 states and have reportable income in each state. You may be required to file state tax returns for each of these states, which means your tax reporting may be more complex and costlier, though most individual investors fall well under the threshold for having to do so .

Cost-Benefit Analysis

What all of this means is that you have to weigh the additional complications against the income you can expect to receive. Let's consider the example of my friend's $5,000. Emerge Energy Services is probably not a good MLP to use for this example, because its distribution and appreciation were highly atypical ov! er the pa! st year. Instead we will consider Enterprise Products Partners (NYSE: EPD), the largest publicly traded MLP and one more representative of the "typical" partnership.

Assume that my friend made this investment one year ago. Over the past year, EPD has yielded about 4 percent. So for an investment of $5,000, my friend would have received a total distribution of $200. As much as 90 percent of this could have been treated as a return of capital, leaving him with $20 of taxable income on his $5,000 investment. EPD also appreciated by 17 percent over the past year, which would have increased the size of his investment to $5,850. His cost basis would have been reduced to $4,820 (the initial $5,000 investment minus $180 of the distribution treated as a return of capital).

So my friend in this case would have been about $1,000 better off, but he now has to weigh that against tax complications. Further, that 17 percent appreciation is certainly not a sure thing, so he could end up with tax hassles over a mere $200 of income.

Alternatives Abound

Every person's threshold is different, but $5,000 is definitely on the low side to invest in an MLP given the tax complications. If you are an investor seeking capital appreciation, I would instead invest in a corporation. If you have $5,000 and want exposure to an MLP structure, you can either invest in a mutual fund or an exchange traded fund (ETF) that invests in MLPs. See my recent article An Enticing Discount on MLPs for more information on these investments.

Or you could invest in an MLP that has chosen to be taxed like a corporation. I detail some of these options in Marshalling the Marines. In both cases you will receive a 1099 instead of a K-1, but you give up some of the tax advantages from the MLP structure. However you retain the potential to still benefit if you believe the MLP sector will strongly advance this year. These sorts of investments are also more suitable if you want MLP exposure within an Individual Retirement Ac! count (IR! A) or a 401(k) plan.

Conclusions

The MLP sector has grown dramatically over the past decade, and now garners attention from less-experienced investors. It is very important that those who are unfamiliar with the basics of MLPs take time to understand their tax implications. It is also important to understand that the value of an MLP — just like that of shares in a corporation — can fluctuate.

MLPs are most advantageous when held for long periods, because you get more time to compound the tax-deferred income. But make sure the income you do expect to receive is worth the trouble when it is time to pay your taxes.

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

 

EU-US Summit: Transatlantic Trade, Russia Sanctions Top Agenda

NEW YORK (TheStreet) -- Reducing Europe's dependence on Russian gas is one of the aims of a free-trade accord discussed at today's EU-US summit in Brussels, President Barack Obama's first visit to the EU capital.

He met with European Commission President Jose Manuel Barroso and EU President Herman Van Rompuy to discuss ways to strengthen transatlantic ties - economically, politically, and even militarily - as tensions remain high over Russia's annexation of Crimea.

"Events in Ukraine and elsewhere go to show that there are many unsettling uncertainties, and that's why the solid certainty of the transatlantic relationship is so crucial," Van Rompuy told journalists after the summit, which lasted just over an hour. "It is the bedrock to face these challenges, a bond of friendship tested by history, and that bond is shock-proof. Cooperation among our countries is unrivaled."

President Obama, who attended the summit after paying tribute to American World War I veterans in Flanders, north of Brussels, underscored that Europe and the 28-nation EU is the "cornerstone of America's engagement around the globe." "We are more secure and we are more prosperous, the world is safer, and more just," he said, "when Europe and America stand as one." The two sides recently launched talks on a free-trade treaty the EU says can boost its economy by 119 billion Euros ($164.2 billion) a year and that of the United States by 95 billion Euros a year. Besides slashing tariffs for all sectors, the aim is to tackle barriers at the customs border -- like differences in technical regulations, standards and approval procedures - to make it easier for companies big and small to export in either direction. Currently, when a car is approved as safe in the EU, it still has to go through a new approval procedure in the U.S. under similar safety standards. A free trade pact is expected to boost EU car exports to Europe by as much as 149%, boosted by the already strong two-way trade in parts and components. That could give an added boost to Germany's Volkswagen, Mercedes-Benz and BMW, already among the top-selling foreign brands in the U.S. As for other industrial sectors, the EU predicts a 12% rise in metal exports to the U.S. post-treaty, 9% in processed foods and in chemicals, 6% in other manufactured goods and 6% in transportation equipment unrelated to cars. On Wednesday, both sides gave reassurances that they won't push for a pact at the price of sacrificing environmental standards or consumer protections. "I have fought my entire political career and as president to strengthen consumer protections," Obama said. "I have no intention of signing legislation that would weaken those protections." Nor does the Commission's negotiating mandate on behalf of the EU's 28 member states allow for any kind of weakening of standards, said Commission President Barroso. Freer trade is also seen as a way to reduce Europe's dependence on natural gas from Russia, all the more urgent in the wake of the Ukraine crisis. Obama said freer trade should make it easier for the U.S. to export liquefied natural gas to Europe, "something that's obviously relevant in today's geopolitical climate." Already, the U.S. has authorized the export of as much natural gas as Europe uses every day, he said. He also urged Europe to look for other sources of energy, cautioning that, "just as there's no easy, free simple way to defend ourselves, there's no perfect, free, ideal, cheap energy sources." At the same time, the EU and the US to stand shoulder to shoulder against Russia's actions in Ukraine, and waved the threat of additional sanctions if the situation escalates. "If Russia continues on its current course," Obama said, "the isolation will deepen. Sanctions will increase and there will be growing consequences for the Russian economy.....This reflects the enduring commitment to the goal that has brought Europe and the United States together for decades - a Europe that is whole and free and at peace." EU President Van Rompuy emphasized that sanctions should not be an end in itself, underscoring the need to stabilize the situation politically, economically and financially, "because that is the best answer." President Obama had a packed 24 hours in Brussels, meeting briefly with NATO Secretary-General Anders Fogh Rasmussen and ending the day with an evening speech to students in central Brussels before jetting to Rome to meet with Pope Francis.

-- Written by Renee Cordes in Brussels.

Top JPMorgan banker to resign amid hiring probe

JPMorgan's office in the heart of Hong Kong's central business district.

HONG KONG (CNNMoney) A senior JPMorgan executive in Hong Kong is leaving the bank amid an ongoing investigation into the company's hiring practices in China.

Fang Fang, a 12-year employee, was one of JPMorgan's top China dealmakers and most recently served as vice chairman of the firm's Asia investment banking group.

Therese Esperdy, JPMorgan's co-head of banking for Asia-Pacific, wrote in an internal company memo circulated Monday that Fang had informed the bank of his "desire to retire."

Fang had come under scrutiny for his reported ties to a program at JPMorgan that is now the subject of a U.S. investigation.

The program, called "Sons and Daughters" and run out of JPMorgan's Hong Kong office, is thought to have tracked the children of top Communist Party officials hired by the bank.

Documents obtained by investigators list the hires and their ability to win new business for the bank in China, according to The New York Times.

If there is an explicit link between the hiring decisions, new deals and increased revenue for the bank, investigators could make the case that JPMorgan was in violation of the Foreign Corrupt Practices Act. The FCPA makes it illegal for American companies to pay bribes as a part of doing business.

Investigators have not accused any JPMorgan employees of wrongdoing.

Marie Cheung, a spokeswoman for the bank, said that Fang's decision to retire was a personal one, and she added that JPMorgan is cooperating with regulators.

  Baidu, Alibaba challenge Chinese banks !

Investigators have secured emails in which senior employees discuss the program. Fang, a Chinese citizen, sent some of the messages.

"You all know I have always been a big believer of the Sons and Daughters program -- it almost has a linear relationship" with winning assignments to advise Chinese companies, Fang wrote in an email published by The Times.

In another email, Fang suggested that JPMorgan should extend the contract of Tang Xiaoning, a bank employee whose father is the chairman of China Everbright, a state-backed financial services company.

"Given where we are on China Everbright, I think we may need another contract for Xiaoning," Fang said. JPMorgan had been hired to work on a share offering for a subsidiary of China Everbright.

Stocks Rise, Gold Falls On Upbeat Data; New Highs Likely

The S&P rallied in the face of potential higher interest rates on Thursday. After the big selloff in the S&P futures during Wednesday afternoon's Fed announcement and the subsequent bounce, the S&P came in lower during yesterday's open and rallied most of the day. At the end of the day the Dow Jones Industrial Average gained 108.88 points, or 0.7%, to 16331.05. The S&P 500 [CME:SPM14] advanced 11.24 points, or 0.6%, taking back Wednesday's -0.60% loss, the Nasdaq Composite Index gained 11.68 points, or 0.3%, to 4319.29.

The news was centered around worries that the Federal Reserve may increase interest rates sooner than expected, a boost in factory activity after the weather related weakness, the Fed's bank stress test results showing 29 of 30 big banks could weather a big shock and President Obama enacting fresh penalties on Russia for annexing Crimea. Lastly the S&P's resilience itself was news, as it showed little to no weakness in the face of uncertainty.

Back to UNCHED

As the stock market enters the sixth year of the bull market there has been a tug of war going on. Despite the popular idea that the fed tapers would have a negative effect, as of yesterday's close the S&P is up 178% from its 12-year low. The next upside levels we are looking at are the 1886 level and the the 1904 level.

It has become a popular sport to try and pin this bull market on some specific macroeconomic factor or factors. Is it the rise of China, India, and the emerging markets? Is it the renewed strength of the US auto industry? Is it the tech sector? Is it because of or in spite of Barack Obama being president?

As always, there are some—probably not most, but some—who freely admit they don't know and in fact, don't care to know. Some of us keep an eye on the news just to know what the herd might be reacting to, so we don't get surprised or trampled by sudden moves. We trade crude oil based on the trend, not on what Vladimir Putin may or may not do and how that may or may not cause others to do things that may or may not…it's exhausting.

Speculation doesn't necessarily mean idle speculation. The difference between traders and analysts is where their money is. For analysts, the money comes from the paycheck you get. Some of the most highly-paid analysts on TV and elsewhere are wrong most of the time. Frankly, they couldn't trade if their lives depended on it.

Traders…well, our livelihoods do depend on it. As citizens, we are concerned about the economy, about unrest in Crimea, about 1 in 6 Americans facing hunger at some point this year, about jobs. But as traders, our bottom line is the bottom line.

So when we here at MrTopStep talk about the news, it isn't to get you to trade the news, but to know how those who do trade the news (both the humans and the news algos) may behave, so you can make wise decisions. And make money.

Russian Bond Dump

Here's one last bit of news to think about (or not) this morning. Russia is claiming to have dumped US bondsin retalation for US sanctions and says they were doing it long before President Obama's sanction address. Their calls for the world to follow their lead and dump US Treasuries may be financial saber-rattling. But the main issue is whether Russia can afford to support Crimea, which is poor in resources and manufacturing and will likely drain the Russian treasury, not add to it.

The Asian majors closed mostly higher and in Europe 7 of 11 markets are trading modestly higher. Today's economic calendar starts with the Atlanta Fed Business Inflation Expectations, St Louis Federal Reserve Bank President James Bullard speech on nominal GDP, in Washington, Minneapolis Federal Reserve Bank President Narayana Kocherlakota and Bank of England Exec. Director Spencer Dale on panel in Washington, Federal Reserve Gov. Jeremy Stein's speech to International Research Forum on Monetary Policy, in Washington. It's been a long week and despite all the ups and downs the S&P is only about 10 handles off its all-time contract high.

Our View

The MiM has been hot lately. While the S&P was selling off the MiM was going up. After selling off down to 1861 late in the day the S&P went ripping back up in the final minutes of the day. As of yesterday's high the S&P has rallied over 45 handles from its 1823 Globex low last Sunday night. Lets face the facts: the S&P has been taking bad news and making good of it again.

Based on yesterday's overall prices action and late pop we think there is a very good possibility the ESM14 makes new highs today. Yesterday the positive S&P cash stats were right on: up 22 down 7 of the last 29 and today has been up 16 / down 13 of the last 29 occasions. The Stock Traders Almanac says the March Triple Witching day is "mixed" the last 12 years but down 4 out of the last 5 and the week after has the Dow down 17 of the last 26 occasions, up 4.9$ in 2002, up 3.1% in 2007, up 6.8% in 2009, up 3.1% in 2011 or up 6 out of the last 10.

Our view is we think the S&P is going up. There is a big line of buy stops that start above 1869 all the way up to 1876. Will the S&P dipsy doodle ? Sure it will. After the first two hours it should slow until the afternoon and with the roll out of the way we will get a real look at what the volumes are, it's my guess they are going to be low.

As always, keep an eye on the 10 handle rule and please use stops when trading futures and options.

March expiration study: http://mrtopstep.com/march-expiration-study/

In Asia, 9 of 12 markets closed higher: Shanghai Comp. +2.72%, Hang Seng +1.20%, Nikkei -1.65% In Europe 7 of 11 markets are trading trading : DAX +0.43%, FTSE +0.55% Morning headline: "Stocks rise, gold falls, on upbeat data to end week" S&P Fair Value:1864.21 (futures 6.29 higher at 1870.5 as of 6:04AM CT) Total volume: 1.67mil ESM and 14.8K SPH and SPM (7.9K) traded Economic calendar: Atlanta Fed Business Inflation Expectations, James Bullard speaks

 

E-mini S&P 5001881.75+8.00 - +0.43% Crude98.55-0.22 - -0.22% Shanghai Composite0.00N/A - N/A Hang Seng21436.699+254.539 - +1.20% Nikkei 22514224.23-238.289 - -1.65% DAX9315.07+18.95 - +0.20% FTSE 1006546.52+4.08 - +0.06% Euro1.38    

The following article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.

Posted-In: Commodities Markets

© 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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Devon Energy Turnaround Spared by Activists

Updated from 3:40 p.m. ET to include Third Avenue Management comments and closing share prices.

NEW YORK (TheStreet) -- It took Devon Energy (DVN) about a decade to grow from a bit player into the biggest independent energy producer in the United States. Now, it may take nearly as long for the driller to prove it can dismantle that sprawling empire.

Devon's woes are similar to those of Chesapeake Energy (CHK), Occidental Petroleum (OXY), and Hess (HES) who over-expanded during the 2000's and found themselves short on cash in the years after the financial crisis. Unlike its competitors, Devon hasn't faced the pressure of an activist investor as it restructures. That speaks to the change underway at Devon and, possibly, the scale of the company's issues.

Devon sold its Gulf of Mexico assets to BP (BP) and Apache (APA) for a total of $8.3 billion in 2010, exceeding the company's initial guidance to shareholders. Devon also impressed in February when it sold some of its businesses in Canada for about $2.8 billion, consolidating the company's international footprint to the Alberta oil sands and the Horn River.

This March, Devon completed a merger of its midstream business with Crosstex Energy. The combined company was then spun into general partner and master limited partnership securities, respectively - EnLink Midstream LLC (ENLC) and EnLink Midstream LP (ENLK) -- that will be controlled by Devon. Generally, Devon has exceeded expectations on its sale and spinoff of non-core business lines. "We believe this will help unlock value for the company and highlight the value of these assets," Third Avenue Management, a Devon shareholder wrote in October of the spinoff. Devon contributed its midstream assets to the spinoff entities at a valuation of eleven times earnings before interest, taxes, depreciation and amortization (EBITDA), nearly double the company's value of six times EBITDA at the time, Third Avenue added. Third Avenue Management is among Devon's top-20 shareholders, according to Bloomberg data as of Dec. 31, 2013, and stands out as one of just a few hedge fund investors in the company.

A Push Onshore To replace those divested businesses, Devon has redoubled its commitment to onshore projects in North America. After acquiring GeoSouthern Energy's assets in the Eagle Ford shale for $6 billion last year, Devon's core assets will consist of the Permian Basin, the Eagle Ford, Alberta oil sands and other onshore assets such as the Mississippi Lime. Perhaps the restructuring is complete. Devon may now be in a position to grow its oil production significantly and plug cash flow deficits that have stretched into the billions since 2010, according to Goldman Sachs. In that time span, Devon shares have underperformed the SIG Oil Exploration & Production Index by about 25% when factoring in dividends.

Devon shares have gained 3.3% year-to-date, closing Monday trading at $63.91. Goldman now forecasts Devon to grow its oil production by 50% to 330,000 barrels per day by 2016. That rising oil production could help Devon mitigate its exposure to oversupplied natural gas markets and finance any continued cost overruns.

Weak drilling results in the Utica Shale, the Tuscaloosa Marine Shale and the Cline Shale, however, raise concern about Devon's execution. Goldman analyst Brian Singer initiated Devon with a 'neutral' rating on March 18. The analyst said Devon is valued at a lower-multiple than restructuring industry peers; however, there is greater investor unease about the company's ability to meet capex guidance and execute on its drilling program. If Devon succeeds in unwinding a mistimed expansion completed by former chief executive and current chairman Larry Nichols, it will be a rare energy industry turnaround orchestrated without the hand of an activist investor.

Three years of restructuring may also be the foundation from which an activist may emerge. -- Written by Antoine Gara in New York

Stock quotes in this article: DVN, CHK 

FedEx Chops Forecast as Earnings Struggle With Weather, Fuel Costs

FedEx Corp. (NYSE: FDX) reported fiscal third-quarter 2014 results before markets opened Wednesday. The package delivery services provider reported diluted earnings per share (EPS) of $1.23 on revenues of $11.3 billion. In the same period a year ago, FedEx reported adjusted EPS of $1.23 on revenue of $11.0 billion. Third-quarter results also compare to the Thomson Reuters consensus estimates for EPS of $1.46 and $11.43 billion in revenue.

The company forecast fourth-quarter EPS of $2.25 to $2.50 and lowered its EPS forecast for the full year to a range of $6.55 to $6.80. At the end of the company’s second quarter FedEx forecast earnings growth of 8% to 14% for the full year, which worked out to a range of about $6.73 to $7.10. The consensus estimates call for fourth-quarter EPS of $2.33 and full-year EPS of $6.90.

The company’s CFO said:

While severe winter weather often affects our third-quarter results, the impact from multiple severe storms and frigid temperatures was significantly more pronounced this year and we are reducing our full-year earnings per share guidance as a result of the weather impact. The $1.6 billion profit improvement plan at FedEx Express remains on track despite the near-term impact of weather. Our accelerated stock repurchase program initiated in January reflects our confidence in achieving our financial goals.

In January, FedEx announced an accelerated share buyback program to repurchase $2 billion of its common stock. Repurchases had a “minimal positive impact” on quarterly earnings.

The nasty winter weather cost FedEx’s express segment an estimated $70 million in operating income. Rising fuel costs also weighed on the company’s third-quarter results. For some reason FedEx did not raise its fuel surcharges in any of its segments to offset those rising costs.

Competitor United Parcel Service Inc. (NYSE: UPS) is not scheduled to release first-quarter earnings until the end of April. The consensus estimates call for EPS of $1.12 on revenues of $13.92 billion. UPS currently has forward multiple of 16.4, compared with FedEx’s multiple of 15.55. At Tuesday night’s closing prices, the implied gain for FedEx stock based on a consensus price target of around $154.00 is 11.1%. The potential upside for UPS stock based on its price target of around $108.70 and Tuesday’s closing price of $97.41 is 11.6%. Not much difference here.

Shares of FedEx were down about 1.1% in premarket trading, at $137.00 in a 52-week range of $90.61 to $144.39.