3/31/2013

Herbalife, Nu Skin Jump Based on What Einhorn Didn’t Say

It’s been proven time and time again that what top investors say at conferences tends to move the markets. But at Wednesday’s Ira Sohn investment conference in New York, Greenlight Capital’s David Einhorn may have done something unprecedented: he helped send shares of multi-level marketing networks Herbalife (HLF) and Nu Skin (NUS) higher by not mentioning them.

Avi SalzmanDavid Einhorn (left) prepares to go onstage at the Ira Sohn investment conference in New York on Wednesday.

Einhorn had caused a stir a few weeks ago by jumping on Herbalife’s quarterly earnings call to ask questions about its business model. Traders took this as a sign that Einhorn was shorting the stock and expected him to mention the two companies when he spoke at the Ira Sohn Conference on Wednesday. Barron’s Senior Editor Bill Alpert also wrote about some challenges facing the companies in this week’s magazine.

But Einhorn took a different tack, running through a list of his most and least favorite stocks, but not once mentioning either company. His wrath instead fell on sand and gravel company Martin Marietta Materials (MLM), Dick’s Sporting Goods (DKS) and on the entire nation of China.

With the multi-level-marketers seemingly all in the clear, their shares soared in late trading. Herbalife rose 17% and Nu Skin was up 16% by the end of the day, with the stocks spiking after Einhorn began speaking. Herbalife is up another 5.3% in pre-market trading on Thursday.

Of course, just because Einhorn didn’t mention the stocks doesn’t mean he’s not shorting them.

Apple Sets March 7th Date for Special Event

Apple (AAPL) has sent out an invitation to media to attend a “special event” on March 7th at 10 am at the Yerba Buena Center for the Arts in San Francisco.�

With a picture of a finger touching the familiar calendar icon of iOS on a surface that looks like an iPad, one would assume this is for the purpose of introducing the next iPad, as has been widely rumored for the last month or so.�

The invitation carries the tag line “We have something you really have to see. And Touch.”�

Apple shares are up $6.03, or 1%, at $531.79.

Update: Piper Jaffray’s Gene Munster, who has an Overweight rating on Apple shares and a $670 price target, thinks a revamped AppleTV may also be in the mix:

We expect the new iPad (possibly called�iPad HD) to have a high-resolution “retina” display, faster graphics�and processing, and 4G LTE wireless connectivity. Recent chatter in�the media also suggests Apple may use the event to announce an updated�Apple TV (set-top-box) to stream higher resolution video from the new�iPad. A March iPad launch would likely drive upside to our March�quarter iPad estimate of 9.0m units (-42% q/q).

Fin

Sony Reportedly To Launch 2 Movie Channels Later This Year

Sony (SNE) plans to launch two new movie channels later this year, according to the Los Angeles Times, which cites “people familiar with the plans.”

One of the channels, tentatively called Sony Pictures Movies HD, would be the company’s first wholly owned cable channel in the U.S. devoted to movies. The channel is expected to debut October 1; it would be a basic cable service, and not compete int he pay TV market with HBO and Showtime.

Also reportedly in the works in a joint venture between Sony, Comcast (CMCSA) and Lionsgate called FearNet, a service now offered as a video-on-demand service by some cable operators. Focused on horror films, that channel also is expected to launch October 1.

4 Warren Buffett Myths Debunked

Thanks to the 14% rally in shares of Berkshire Hathaway (NYSE: BRK-B  ) (NYSE: BRK-A  ) so far this year, CEO Warren Buffett has once again overtaken Spanish retail titan Amancio Ortega as the world's third-richest person. All told, the Oracle of Omaha now has an eye-popping net worth of approximately $54.6 billion.

It's only natural, then, for people to explore exactly how Buffett amassed his fortune in their efforts to even partially replicate his success. This widespread speculation, however, has resulted in oft-repeated bits of misinformation. As a result, many retail investors fall victim to persistent myths regarding Buffett's investing style.

Here are five such misconceptions, and why they're wrong.

Myth No. 1: Buffett hates share buybacks
In reality, Buffett only loathes poorly executed buybacks, and made as much clear in 2011 when Berkshire announced it would be willing to repurchase its shares at a price of up to 110% of book value. Of course, Buffett fans were understandably confused when that happened, considering it was the first time Buffett had declared his willingness to repurchase Berkshire's shares since he took the helm in 1965.

Later in 2012, folks were even more confused when Buffett repurchased $1.2 billion of Berkhire's Class A shares at around 116% of book value, simultaneously raising his limit to 1.2 times. So did this move signal a deterioration of Buffett's long-standing strict criteria for identifying superior investments? Hardly.

In fact, Buffett circumvented the move when he devoted an entire page of Berkshire's 2011 shareholder letter to explaining his stance on stock repurchases, with the following paragraph summing things up nicely:

Charlie and I favor repurchases when two conditions are met: first, a company has ample funds to take�care of the operational and liquidity needs of its business; second, its stock is selling at a material discount to the�company's intrinsic business value, conservatively calculated.

Myth No. 2: Buffett only buys cheap stocks�
I find this widespread assumption especially puzzling knowing Buffett himself is often quoted as saying, "It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price."

This is exactly how Buffett built his empire and, incidentally, it also helps to reaffirm the notion held by Fool.com co-founder David Gardner that�winning businesses tend to keep on winning.�That's not to say Buffett is willing to pay any�price for great businesses, but if there's anyone who knows how to weigh risk versus reward, rest assured it's him. In the end, the overall quality of the business consistently trumps its price -- and rightfully so.�

What's more, this misconception becomes even more apparent each time Buffett uses Berkshire to acquire new businesses. Sure enough, financial pundits around the world wondered whether Buffett had lost his marbles in 2009 when Berkshire spent $26.3 billion to buy the remaining shares of Burlington Northern at a 30% premium to their value at the time.

More recently, the world thought Uncle Warren went crazy again when Berkshire and 3G Capital acquired Heinz (NYSE: HNZ  ) in a $23 billion dollar deal last month -- and at a 20% premium to it's all-time high and nearly 21 times the company's estimated 2013 earnings.

As I noted last week, however, we need to give Buffett some credit considering he has repeatedly shown he knows a thing or two about getting the most bang for his buck over the long haul.

Myth No. 3: Buffett never invests in technology�
Call the man old-fashioned, but it's been reported that Buffett refuses to carry a cell phone and doesn't keep a computer at his desk. Instead, he subscribes to his own now-famous advice on how to become rich: "Close the doors. Be fearful when others are greedy. Be greedy when others are fearful."

While most of us would be unwilling or unable to follow suit, what better way is there to "close the doors" and form your own opinions than to shun the noise from these popular communicative technologies? Still, that doesn't mean Buffett is entirely unwilling to invest in technology. Instead, he simply refuses to invest in businesses he doesn't fully understand -- a stance any investor would be wise to follow.

Take enterprise technology stalwart�IBM (NYSE: IBM  ) , for instance, in which Berkshire currently holds a $15 billion stake. As fellow fool Andrew Tonner recently pointed out, this shouldn't come as a surprise considering IBM trades at under 15 times trailing earnings and less than 12 times forward estimates, has taken advantage of it's reasonable share price with $12 billion in share repurchases over the past year, and has increased its dividend by around 17% each year since 2008.

That brings me to the next myth...

Myth No. 4: Since Berkshire doesn't have a dividend, it must mean Buffett hates dividends�
Once again, it's understandable why investors mistakenly think Buffett hates dividends. After all, under his watch, Berkshire has only paid one dividend at $0.10 per share in 1967, and Buffett himself once joked he "must have been in the bathroom when the decision was made."

Sure enough, in his 2012 shareholder letter, Buffett also commented on this confusion:

A number of Berkshire shareholders -- including some of my good friends -- would like Berkshire to pay a�cash dividend. It puzzles them that we relish the dividends we receive from most of the stocks that Berkshire owns,�but pay out nothing ourselves.

That doesn't mean, however, Buffett despises dividends. In fact, the opposite couldn't be more true: Buffett has long said dividends represent one of four great ways to reward patient long-term investors. However, in Berkshire's case, Buffett just so happens to wield an unrivaled ability to create even greater value for his shareholders by using a combination of the remaining three ways in acquisitions, reinvesting capital in his business, and share repurchases.

That said, Buffett has stated they would be willing to "reexamine [their] actions"�if the day ever comes that Berkshire's dividend-free approach consistently fails to provide adequate long-term returns for shareholders.

In the meantime, I suggest you sit back and enjoy the ride.�

Thanks to the savvy of investing legend Warren Buffett, Berkshire Hathaway's book value per share has grown a mind-blowing 586,817% over the past 48 years. But with Buffett aging and Berkshire rapidly evolving, is this insurance conglomerate still a buy today? In The Motley Fool's premium report on the company, Berkshire expert Joe Magyer provides investors with key reasons to buy as well as important risks to watch out for. Click here now for instant access to Joe's take on Berkshire!

These 10 Stocks Pay Better Than Bonds

Investors have traditionally bought stocks for their growth potential and bonds to get income. These days, though, that strategy has been somewhat turned on its head, as both fear and Federal Reserve intervention have driven bond yields down to incredibly low levels.

With even the 30-Year Treasury bonds recently offering pitifully low 3.1% yields, you can even find a handful of stocks these days that offer a spectacular combination of:

  • Paying larger dividend yields than the interest rates on Treasury bonds.
  • Having a history of raising those dividends.
  • Showing the potential of continuing to raise those payments over time.

When compared to the lower yielding, static payment amounts of those 30-Year Treasury bonds, these particular stocks can offer tremendous benefits for income-oriented investors.

Who has the right stuff?
Despite higher yields, there really aren't many companies that are worth buying for income in lieu of bonds. After all, the lower yields on the Treasuries reflect the fact that those bonds carry a guarantee of repayment that no stock could ever match.

Those that may be worth owning, however, share the following additional characteristics, above and beyond their current yields:

  • A payout ratio below two-thirds of earnings, which indicates that the company has legitimate earnings power behind those payments.
  • A decent historic dividend growth rate, which shows that the business has a decent track record of directly rewarding its shareholders as its operations improve over time.
  • A reasonable estimated future growth rate, which provides a reason to believe that those dividends can both continue and increase into the future.

That's a fairly high hurdle to clear, and I didn't find many companies that were able to do so. But the 10 companies in the table below did, while still having larger current yields than the 30-Year Treasury bond:

Company

Current Yield

Payout Ratio

5-Year Dividend Compound Growth Rate

Estimated Future Growth Rate

Greif (NYSE: GEF  )

3.4%

42.2%

25.5%

9.0%

Lockheed Martin (NYSE: LMT  )

5.2%

34.9%

20.1%

8.8%

Williams Cos. (NYSE: WMB  )

3.2%

38.5%

14.5%

12.2%

Intel (Nasdaq: INTC  )

3.4%

30.8%

13.9%

10.6%

ConocoPhillips (NYSE: COP  )

3.7%

32.1%

12.7%

6.2%

Maxim Integrated Products

3.3%

49.8%

10.1%

11.4%

Campbell Soup

3.4%

47.0%

9.7%

5.2%

Waste Management (NYSE: WM  )

4.3%

64.7%

9.2%

10%

Sempra Energy

3.6%

31.2%

9.0%

7.7%

Sysco (NYSE: SYY  )

3.8%

52.3%

8.9%

7.6%

Source: S&P Capital IQ, as of Nov. 13.

So what?
Nowadays, Treasury bond yields are so abysmally low that you're actually taking on substantial long-term inflation risk by buying them. Over the past year, the official inflation level ran 3.9%, well above what 30-year Treasuries currently yield. In essence, if inflation remains at that level, you're guaranteed to lose purchasing power by buying those 30-year Treasuries -- even if you reinvest every dime you receive as interest.

With those particular stocks, however, not only are you getting current yields above U.S. government debt, but you're also getting a decent potential growth to that income, as well. Take Waste Management, for instance -- the company has grown its dividend at a better than 9% annualized rate over the past five years and looks capable of keeping that trend going. After all, who doesn't use trash and/or recycling services?

Sure, any one of these companies is at a larger risk of reducing its payment than the government is of stopping payment on its Treasury bonds. But with a long-term perspective and a diversified portfolio among the stocks with similar characteristics, are the risks really any worse than owning Treasuries and their virtual guarantee to lose ground to inflation? With the stocks, you at least have the chance to keep your purchasing power over time, through the potential growth in the dividend and share price.

Pick your risks
It's unfortunate, but also the current reality, that investors are paying a very dear price for the perceived safety of bond income. As with most things in the market, that dear price is itself creating long-run risks. These risks can only be mitigated for income-seeking investors by thinking -- and investing -- outside the bond box.

If you want to find other strong companies whose shares look capable of meeting your income investing needs, click here to get a free Motley Fool report with more rock-solid dividend stock ideas in it. You just might find those dividends to be your best shot of getting cold, hard cash from your portfolio in today's market.

Futures Rise After CPI, Strength in Europe

Stock futures rose early Friday as the consumer price index was flat in November, with the core rate rising 0.2%. European stocks were trading higher, and U.S. banks rode that momentum despite an announcement by Fitch Ratings late on Thursday of downgrades to major banks including Morgan Stanley (MS), Bank of America (BAC) and Goldman Sachs (GS).

Dow futures rose 69 points to 11,891; S&P 500 futures rose 8.7 points to 1,220.4.

Tech stocks are in the spotlight this morning, with Research in Motion (RIMM) falling 10% on a weak forecast, and social-game company Zynga (ZNGA) set to start trading today.

Cablevision (CVC) fell 9% after its COO suddenly resigned.

3/30/2013

The One Dividend-Payer I Want to Hold in Any Market

  I think it's the most boring business I've ever researched. That's what you want if you're looking for a stock to hold no matter what.

It pays dividends like clockwork. They've increased for 39 years straight -- that goes back to when Nixon was in office. That even includes increases during the Great Recession. In the past 10 years the quarterly dividend has risen 154%.

Earnings growth isn't going to blow you away. This company isn't going to invent the next iPod. The CEO isn't going to be a rock star in the business world. In other words, don't expect a lot of flash from this company founded in 1872.

But expect plenty of substance.

Paper company Kimberly-Clark (NYSE: KMB) was the first company to put toilet tissue on a roll. It invented the "disposable handkerchief" -- or what we know as the iconic Kleenex. And it was the first paper company to advertise its brands on national television. Today it's the company behind Huggies, Kotex and Depends.

Like I said, boring stuff. But that's the sort of company that does well over time, especially if things get rocky.

Right now we're seeing $100-plus oil, worries about the Middle East, concerns about an overheated market, and the continuous angst about government deficits. That's a lot of worry. You might sleep better owning KMB.

You see, not only is it one of the most steady dividend payers around, but the shares hold up well in down markets. Take a look at the stock versus the S&P 500 in the recent bear market...

Right now the shares are yielding about 4.5%. Normally I don't get too excited over that sort of yield. But this isn't an ordinary investment.

> You don't buy this stock with the plan to sell it after a month, six months, or even a year. It's the sort of holding you want to buy and forget about, no matter the market. Just let it pay you quarter after quarter.

And while nothing in investing is ever guaranteed, over time those dividends are likely increase, just like they have for the past four decades. At the very least, they'll add up handsomely.

Fairfax Financial: Predicting Another Major Drop In Stock Prices

For those who aren't familiar with Fairfax (FRFHF.PK), it is a Canadian company run by Prem Watsa, a man who is frequently referred to as the "Canadian Warren Buffett". Although both Watsa and Buffett practice value investing as taught by Graham and Dodd, they sometimes have very different strategies.

One major difference is the way that they protect their companies from risk. Buffett, through his company Berkshire (BRK.A) has always had a solid balance sheet and has always had cash available for a rainy day, but does not appear to be concerned about a drop in stock prices. In fact, he appears to welcome a drop although continuing to buy common stocks such as IBM (which by the way would benefit if stock prices dropped through buybacks). However, Watsa appears to be more concerned than Buffett about a drop in stock prices and has hedged Fairfax's portfolio from a significant drop. Watsa has correctly predicted several crashes including the '87 crash, the Japanese collapse of 1990, the technology stock bubble and the meltdown in 2008 while remaining unnoticed and conservative.

During Fairfax's annual meeting on April 26, 2012, Watsa discussed his reasons for being very concerned about a major drop in stock prices. The major reasons relate to problems in China, Europe, and the US. He mentioned that austerity is all over the place and that when you have deleveraging taking over, you need some other part of the economy to make up for it. In China, he mentioned overbuilding and the bubble in the Chinese real estate market being pricked in October/November 2011 (Real Estate Prices Fall in China). China is a $6-7 trillion economy, so if anything happens to it, it affects commodity demand worldwide. Watsa mentioned that Canada will not be spared if China has a problem and that it will affect the world, which is a reasonable assumption. On a side note, he mentioned that in Toronto and Vancouver, Canada's largest cities, there are also major concerns about the real estate markets and bubbles bursting.

Fairfax's worries about Europe should be well-known by now as Europe has been in the headlines constantly for many months. As for concerns about the US, Watsa spoke about corporate profit margins being high and that many market participants may be extrapolating this into the future, but he cautions that they are a mean-reverting series and believes corporate profit margins are likely to come down significantly, taking stock prices down with them. Many of Fairfax's concerns are outlined in its 2012 Annual Letter to Shareholders.

Deflation, not inflation, is a major concern for Fairfax and appears to be a likely possibility in the near future. Watsa mentioned that despite QE1, QE2, and any other stimulus, the velocity of money is coming down. He related this to Japan in the 90's which had cumulative deflation of about 14%. Japan has had no growth for 20 years in terms of the Nikkei 225 since 1990, but in 1989 nobody would've thought that would happen. Watsa also mentioned the relation to the US in the 1930's and mentioned that unemployment is still high, wage increases are almost non-existent, and global deficits are very high, making deflation, not inflation, more likely. Fairfax is concerned about a significant drop, not 10%, but more like 50%+, in common stock prices and they have positioned their portfolio for the possibility of these risks occurring between the next 1-3 years.

So what can individual investors do to protect themselves from a significant drop in stock prices? One thing is to hold more cash. Another option, and the one that I believe may be a better option, is to hold shares of FRFHF.PK. As Watsa mentioned during the annual meeting in late April 2012, Fairfax is positioning its portfolio to hold about 40% cash, up from 27%. Furthermore, and more importantly, Fairfax has been increasing its holdings of CPI-linked derivatives that benefit if there is cumulative deflation over the next 9 years. He said Fairfax will earn about $2.5 billion if there is deflation or if the market thinks there will be 5% deflation over the next 9 years. I believe that Fairfax will remove these hedges after a 50% drop in common stocks, similar to their CDS that they accumulated from 2003 to 2007 and which they sold in 2008-2009 in order to pick up common stocks after they had dropped. So if and when there is a 50%+ correction in the stock market, it's likely that shares of FRFHF.PK will rise due to their CPI-linked derivatives. This would also provide the individual investor with an opportunity to sell the shares at a profit in order to pick up something else that is then much more undervalued. Alternatively, one could continue to hold the FRFHF.PK shares and watch as their book value continues to grow at their historical long-term growth rate of about 20% per year. There was a great article written last year by a fellow SA author that discusses the CPI-linked derivatives held by Fairfax which can be found here. Although individual investors probably can't buy these derivatives, they can buy shares of FRFHF.PK in order to hedge their portfolios.

Disclosure: I am long FRFHF.PK, BRK.B.

Can This Retailer Correct Its Wardrobe Malfunction?

It's great for a company to be transparent, but lululemon athletica (NASDAQ: LULU  ) has taken it to a whole new level. Last week, the yogawear retailer recalled more than $60 million worth of pants that were deemed too see-through to be sold in stores. The reason for the problem was a super-sheer fabric called luon, which is found in 17% of the retailer's yoga pants.

CEO Christine Day bluntly addressed the situation by saying "the truth of the matter is that the only way that you can actually test for the issue is to put the pants on and bend over." It might sound funny, but this joke might majorly dent the company's income. Can Lulu redeem itself, or is it stuck in "downward facing dog" for good?

Namaste will never be the same
Day's comment was a quotable sound-bite for the news media to gobble up, but it also proved that Lululemon has glaring issues in its quality-control practices. If the company's chief seller is yoga apparel, then why�shouldn't�it be putting the pants on and bending over? This kind of inspection -- testing the product for errors before putting it up for sale -- is vital for a quality brand, whether it's a computer, a hamburger, or a pair of stretchy pants.

According to Lululemon's recent 10-K, the apparel business partners with a leading independent product testing company that checks for "pilling, shrinkage, abrasion resistance, and colorfastness." After what could be a $60 million error, Lulu might add "sheerness" to that list.

The damage is so clear, it's see-through
When news broke of the recall, Lululemon's stock took a 5% nosedive from just over $65 to just under $62. Before that, the company's finances had performed pretty well -- in 2012, its annual revenue jumped 37%, passing the $1.3 billion�mark.

Retailers generally struggle to keep up margins, but Lulu still managed a net profit margin of 19.7% last year, and an operating margin of 28%. On top of larger revenue, the company was able to boost the efficiency of its production.

As for PE, Lulu rings in at 33.5, which is close to the industry average of 33.7 and squarely in between the ratios of its peers. The much larger Nike (NYSE: NKE  ) clocks in at a much smaller 23.1, while the smaller Under Armour (NYSE: UA  ) has the largest at 41.5.

Less-than-flattering results
Now for the cold light of day: In 2012, Lululemon brought in a net income of $271 million. If the sheerness glitch had happened that year, it would have eaten away 22%�of its total net profit.�This is a mistake that simply can't happen again for Lulu, and investors can only hope that the expense and negative publicity will make the company tighten up its inspection guidelines.�

Can Lululemon fight off larger retailers such as Gap and Nordstrom, and ultimately deliver huge profits? The Motley Fool answers these questions and more in our most in-depth Lululemon research available for smart investors like you. Thousands have already claimed their own premium ticker coverage, and you can gain instant access to your own by clicking here now.


The new analytic stack is all about management, transparency and users - 03:00 PM

(gigaom.com) -- As 2013 gains steam, the big data and analytics world is radically changing. Just these past few weeks, I’ve spent time with industry thought leaders including Mayank Bawa, Mike Olsonand Scott Yara, talking about the emergence of a new analytics stack that displaces the current BI-ETL-EDW paradigm. This new stack fundamentally rethinks the data management, analytic transparency and user consumption elements into a more-cohesive platform that removes the enormous latencies and waste in how analytic software is designed and deployed today.

Here’s how.

More from gigaom.com
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  • Google loved Orkut more than Reader and other myths debunked
  • Subscribe to gigaom.com

Hadoop has become the foundational underpinning of managing big data for organizations large and small. The amazing pace of innovation has only been accelerated with recent announcements concerning Greenplum Pivotal HD, Hortonworks Stinger and Cloudera Impala. The trajectory of these projects is crystal clear: the major Hadoop distribution providers are introducing real-time, interactive queries on top of Hadoop HDFS. This brings the best of both worlds together — well-known SQL-based query processing with the exponential scale-out ability of HDFS’s storage architecture.

Predictive analytics are essential for data-driven leaders to craft their next best decision. There are a variety of techniques across the predictive and statistical spectrums that help businesses better understand the not too distant future. Today’s biggest challenge for predictive analytics is that it is delivered in a very black-box fashion. As business leaders rely more on predictive techniques to make great data-driven decisions, there needs to be much more of a clear-box approach.

Analytics need to be packaged with self-description of data lineage, derivation of how calculations were made and an explanation of the underlying math behind any embedded algorithms. This is where I think analytics need to shift in the coming years; quickly moving away from black-box capabilities, while deliberately putting decision makers back in the driver’s seat. That’s not just about analytic output, but how it was designed, its underlying fidelity and its inherent lineage — so that trusting in analytics isn’t an act of faith.

Even after achieving analytics transparency, challenges remain in a number of places: rolling out repeatable applications, creating best-practices, collaborating across organizations, evolving what was built, seamlessly recombining models, and eventually either sharing the strongest content back to the broader community or securely maintaining higher analytic intellectual property. This iterative, responsive approach to user consumption is key to modern analytical success. This is where something like an app store for analytics can really drive user adoption.

This brings me to the new analytic stack. The need for a modern, purpose-built analytic stack is critical. This is a stack that doesn’t worry about the source or shape of the data that is coming into it, but one that is able to ingest structured, unstructured and semi-structured sources seamlessly. One that can create meaningful output, can deliver clear-box predictive analytics and can quickly deploy analytic applications for broader user consumption.

Recently, Gartner released the 2013 BI and Analytics Magic Quadrant, while Wikibon released its 2013 Big Data Market Forecast. Both reports point to a clear signal that even as analytics is taking center stage, yesterday’s BI-ETL-EDW stack is wrong-sided for tomorrow’s needs, and quickly becoming irrelevant.

GigaOM’s Structure: Data conference in New York last week was an even clearer sign that this shift to a new analytic stack is happening. We saw an incredible, yet humbling validation that this future is already here:

  • Hadoop (and NoSQL) are significantly disrupting in how we manage data, especially at petabyte scale.
  • The rise of R and Stata over black-box analytics in academic circles is a strong leading indicator of where the commercial world is headed.
  • Analytic consumption is beginning to move away from just data scientists to analysts and end-users via pre-packaged content and applications.

As this new analytic stack emerges, the big data community will continue be an exciting place for the decade to come.

George Mathew is president and COO of Alteryx. You can follow him on Twitter at @gkm1.

Feature image courtesy of Shutterstock user ramcreations.

The Dogs of the Dow Are Outperforming Their Index

The "Dogs of the Dow" dividend strategy is one of the simplest for beating the market. Over the coming year, I'll track the Dogs' performance and keep you abreast of news affecting these companies.

The strategy
The Dogs is an investing strategy that buys and holds equal dollar amounts of the 10 best-yielding dividend stocks of the Dow Jones Industrial Average (DJINDICES: ^DJI  ) . The strategy banks on the idea that blue-chip stocks with high yields are near the bottom of their business cycle and should do much better going forward. Investors in the strategy then would not only get large dividends but also gains in the stocks underlying those dividends.

High-yield dividends
High-yield portfolios are often dismissed as inferior to their growth counterparts for various reasons:

  • Many people fear that increasing dividend yields mean lower portfolio returns.
  • Others believe that dividend payments mean that management believes the business is done growing.

Evidence compiled by Tweedy Browne refutes these falsehoods. Research shows that portfolios of high-yield dividend stocks outperform lower-yielding portfolios and the market in general. In fact, a study by noted finance professor Jeremy Siegel found that over 45 years, the highest-yielding 20% of S&P 500 stocks outperformed the S&P 500 by three times! The highest-yielding stocks turned a $1,000 investment in 1957 into $462,750 by 2002, compared with $130,768 if the same money was invested in the index.

Performance
After beating the Dow by 6.8% in 2011, the Dogs of the Dow underperformed the Dow by 0.2% in 2012.

Check out the Dogs' performance in 2013 so far:

Company

Initial Yield

Initial Price

YTD Performance

AT&T� (NYSE: T  )

5.34%

$33.71

10.25%

Verizon� (NYSE: VZ  )

4.76%

$43.27

14.92%

Intel (NASDAQ: INTC  )

4.36%

$20.62

7.06%

Merck� (NYSE: MRK  )

4.20%

$40.94

9.00%

Pfizer� (NYSE: PFE  )

3.83%

$25.08

16.09%

DuPont� (NYSE: DD  )

3.82%

$44.98

10.27%

Hewlett-Packard (NYSE: HPQ  )

3.72%

$14.25

68.36%

General Electric (NYSE: GE  )

3.62%

$20.99

11.05%

McDonald's (NYSE: MCD  )

3.49%

$88.21

13.93%

Johnson & Johnson� (NYSE: JNJ  )

3.48%

$70.10

17.24%

Dow Jones Industrial Average

13,104

11.25%

Dogs of the Dow

17.82%

Dogs Return vs. Dow (Percentage Points)

+6.57%

Source: S&P Capital IQ as of March 30.

This week, the Dow Jones Industrial Average was up 0.40%. The Dogs rose more than the Dow, moving up 2.12%. That brings the Dogs' outperformance up to 6.57 percentage points better than the Dow itself!

Movers and shakers
The biggest mover this past week among the Dogs of the Dow was again Hewlett-Packard, which rose 3.47%. The second biggest mover was Intel, up 2.39%. On Tuesday, the government reported that PC sales rose 2.5% in February. Investors' concerns over declining sales have weighed on PC manufacturers, so the report was welcome news.

Upcoming
This week, ADP and the government release their reports on job growth. ADP is expected to report private-sector payrolls growth of 210,000, an increase from last month's 198,000. The government is expected to report nonfarm payrolls growth of 193,000, down from last month's 236,000 as the sequester kicks in and slows jobs growth.

More dividends
If you're looking for some long-term investing ideas, you're invited to check out The Motley Fool's brand-new special report, "The 3 Dow Stocks Dividend Investors Need." It's absolutely free, so simply click here now and get your copy today.

Natural Gas Will Never Knock Out Coal

Fans of Muhammad Ali should have an appreciation for the coal story. Much like the Rumble in the Jungle, where an older Ali faced a younger opponent in George Foreman, the coal industry has found itself up against a younger, cleaner opponent in natural gas. And despite the overwhelming odds in favor of the young upstart, coal, like Ali, is poised to come out of this fight as the reigning champion.

Let's look at the scorecards and see why coal will take this fight in the long run.

The greatest in the world ...
To look only at the U.S. and determine the prospects of coal would be very misleading. While low domestic gas prices have dragged the price of coal down with them, the same can't be said overseas, for two distinct reasons:

  • Natural gas requires a much more robust infrastructure to be competitive, normally consisting of large pipeline networks and�sophisticated liquefaction and regasification terminals, where coal can much more easily use existing roads, rail lines, and ports.
  • In several countries outside North America, natural gas prices are indexed to oil on a BTU equivalency. That has given North America a distinct advantage in selling natural gas, but it also enables coal to compete on the�international�stage much better than here.

Looking at the global market for coal, it appears there are no signs that natural gas will be able to take the title from coal. An International Energy Agency report back in January estimates that coal will pass oil as the most used energy source by 2017. In fact, the report projects that the U.S. will be the only country that will see its coal use decline between now and 2017. Just like almost every story in the energy space, the major drivers of demand will be China and India. Analysts project that the two countries' total coal consumption for electricity generation will be almost double that of all member nations of the Organization for Economic Cooperation and Development, combined. Furthermore, coking coal for steel production should see a substantial gain as well. Total steel demand between now and 2020 is expected to double in India and continue to grow steadily in China.

With so much demand headed overseas, several coal companies in the U.S. will need to boost their export capacity. Peabody Energy (NYSE: BTU  ) has a deal in place with Kinder Morgan Energy Partners (NYSE: KMP  ) to use its export terminal in the Gulf of Mexico and on the East Coast. This agreement will increase Peabody's export capacity in the Gulf region to a range of 5 million to 7 million tons per year. Also, as one of the leading exporters of U.S. coal, Alpha Natural Resources (NYSE: ANR  ) has the export capacity for about 25 million tons per year, which provides it plenty of room to run, considering the company exported only 14 million tons in 2011.

... just not in the United States
Despite the exploding global demand, the IEA does recognize that the U.S. may just represent a round that coal can't win. Based on its projections, total coal consumption in the U.S. will decline by 14% by 2017. So despite the massive growth worldwide, shrinking domestic demand will force American coal companies to compete with overseas players and could potentially squeeze out some of the higher-cost regions such as the Appalachian Basin. Another reason this region will be on notice is that the sulfur content in Appalachain coal is 50% to 275% greater than coal from the Western Basins. As environmental regulations tighten on sulfur dioxide emissions, these types of coal will fall out of favor for domestic electricity generation. This should be a word of warning for Appalachian strong companies such as Arch Coal (NYSE: ACI  ) , which has about one-third of its total reserves in the�Appalachian�region.

We're starting to see this trend play out already, the US Energy Information Agency recently reported that natural gas has been rapidly closing the gap with coal for the top fuel source for electricity in the United States.

Source: US Energy Information Agency

According to Exelon (NYSE: EXC  ) CEO�Christopher�Crane, this trend will probably�continue.�In a recent interview with The New York Times, he expects that 19,000 megawatts of power from coal-fired plants will be shut down because of tightening environmental regulations on�emissions. This will not only help his company, which is struggling because of low natural gas prices as well, but it will also further chip away at coal's slim lead over natural gas in the United States.

What a Fool believes
There's plenty of room to grow in the coal industry, but just like Ali's Thrilla in Manila, U.S. coal companies will fight their biggest fights overseas. Peabody Energy will have an easier time than most because it has already established a strong global presence. Peabody already has mining operations in Australia and has a joint venture with a Mongolian mining company to supply China in one of the most cost-effective ways possible. While these may be only smaller parts of the company's overall holdings, they will help to drive better relations in the Asia-Pacific market for years to come. Our new premium report on Peabody Energy looks at how this company will�capitalize on U.S. coal supplying the world.�Don't miss out on this invaluable resource -- simply�click here now�to claim your copy today.

U.S. stocks decline as dollar rises

MARKETWATCH FRONT PAGE

U.S. stocks declined Tuesday, with the Dow industrials ending near a four-month-low, as economic reports failed to deflect the latest breakdown in Greece�s attempts to form a coalition. See full story.

J.C. Penney swings to loss, suspends dividend

The retailer, which is making major pricing and merchandising changes, says it swung to a first-quarter loss and no longer expects to meet its previous profit forecast for the year, in anticipation of more restructuring charges. See full story.

Avon stiffs Coty, shareholders

Ignoring Coty�s takeover offer ends up costing Avon $2.7 billion in market cap. See full story.

What�s next for Avon after Coty withdraws bid

Avon shares slump after Coty withdraws its $10.7 billion bid. See full story.

Home Depot profit up 28%, but sales disappoint

The home-improvement retailer�s first-quarter profit rises, but shares are down as sales disappoint. See full story.

MARKETWATCH COMMENTARY

Jamie Dimon is right: Regulations will never prevent stupidity. It�s time to bring back Glass-Steagall and separate traditional Main Street banking from the casinos of Wall Street, writes David Weidner.. See full story.

MARKETWATCH PERSONAL FINANCE

Home prices in a majority of the markets covered in Zillow�s Home Value Forecast are set to bottom this year � if they haven�t already, according to a Zillow report released on Wednesday. See full story.

The Experts’ Take on Facebook’s Valuation

Finally! After making a couple weeks’ worth of free fall feel like an eternity, shares of Facebook (NASDAQ:FB) have stabilized.

So, what are financial analysts thinking? Will the stock make a run from here? Well, Facebook�s underwriters are not allowed to post any research until 40 days after the IPO. This is known as the quiet period. However, several independent analysts have been offering their own research. Let�s take a look:

Is Facebook a Bargain at $26?

Brian Wieser, Pivotal Research Group: Wieser put a sell rating on Facebook on the day of the IPO, with a price target of $30. Wieser�s main concern is that Facebook is undergoing major transitions. One is a move toward getting business from large brands, and (of course) the other is the rapid move of traffic from the desktop to mobile platforms. As a result, Wieser believes there will be lots of volatility in the short- run.

Michael Pachter, Wedbush Securities: During the Facebook roadshow, Pachter criticized CEO Mark Zuckerberg for wearing a hoodie, calling it a sign of �immaturity.� However, Pachter still likes the stock and thinks it’s worth $44.

Carlos Kirjner, Sanford C. Bernstein & Co.: Kirjner’s price target is $25, so there’s still more bottom to go. Yet, this projection seems high, considering Kirjner thinks Facebook will earn 65 cents in 2013. This translates into a forward price-to-earnings ratio of 40.

Mark Harding, JMP Securities: Harding put a price target of $37 on Facebook. Essentially, he is hopeful the company will find ways to substantially monetize its huge user base.

Eric Jackson, Ironfire Capital: On CNBC, Jackson says Facebook could �disappear� in five to eight years. He says history shows that major tech companies often fail to make major transitions. And Jackson thinks this will be the case with mobile.

Tom Taulli runs the InvestorPlace blog IPO Playbook, a site dedicated to the hottest news and rumors about initial public offerings. He also is the author of �The Complete M&A Handbook”, �All About Short Selling� and �All�About Commodities.� Follow him on Twitter at @ttaulli or reach him via email. As of this writing, he did not own a position in any of the aforementioned securities.

GRPN Tumbles 8%: Revises Q4 Lower; Financial Reporting Controls Lacking

Online coupons purveyor Groupon (GRPN) this afternoon revised its Q4 results for the three months ended in December 31st, first reported February 8th, to reflect “higher price point offers” it sent to subscribers, which “have higher refund rates.”

Groupon said the revision reduces previously reported revenue of $506 million by $14.3 million, and reduces reported EPS of 2 cents a share downward by 4 cents.

The revisions are primarily related to an increase to the Company’s refund reserve accrual to reflect a shift in the Company’s fourth quarter deal mix and higher price point offers, which have higher refund rates. The revisions have an impact on both revenue and cost of revenue.

Groupon defines its revenue as “the purchase price paid by the customer for the Groupon less an agreed upon percentage of the purchase price paid to the featured merchant partner, excluding any applicable taxes and net of estimated refunds.”

In its 10-K filing with the SEC dated today, Groupon said that it determined it has not had proper controls in place for financial reporting. The company said it was taking steps to remedy the situation:

Our management, with the participation of our Chief Executive Officer and our Chief Financial Officer, evaluated the effectiveness of our disclosure controls and procedures as of December 31, 2011 [...] In connection with the preparation of our financial statements for the year ended December 31, 2011, we concluded there is a material weakness in the design and operating effectiveness of our internal control over financial reporting [...] We did not have adequate policies and procedures in place to ensure the timely, effective review of estimates, assumptions and related reconciliations and analyses, including those related to customer refund reserves.�As noted previously, our original estimate disclosed on February 8 of the reserve for customer refunds proved to be inadequate after we performed additional analysis.

(The relevant passage is Item 9A: Controls and Procedures.)

The errors in financial controls are not a good thing for a company that spent some chunk of 2011 prior to its IPO tussling with the Securities & Exchange Commission over issues of accounting and non-GAAP measures.

Given that Groupon’s report last month beat the $473 million projection of analysts, but fell short of 3-cent estimate of analysts, the revision would still put revenue ahead of consensus, if less so, while making the bottom-line miss worse.

Groupon said there is no change to its outlook for this year.

Groupon shares are down $1.53, or more than 8%, in late trading at $16.85 in late trading.

Fin.

Attracting Women: Pershing, Fidelity Help Advisors Give Female Clients What They Want

When advisors make a genuine effort to connect with women, the rewards can be astonishing.

So says Sacha Millstone, a principal with the Millstone Evans Group of Raymond James, an investment advisory practice with $300 million under management and clients in 42 states, in Pax World’s Women & Wealth newsletter for winter 2013.

Asked whether she had found a difference in referral rates between men and women, Millstone said women were “far and away more proactive” in making referrals for potential clients.

“Some of my female clients have truly been advocates, talking extensively within their networks about the services that we provide and how valuable they have found these services,” Millstone, a member of the Raymond James Women's Advisory Council, told Pax World, a sustainable investment management firm. “Within women’s networks we are always looking for quality providers, and when we find them we tend to tell everyone we know. I deeply appreciate the support that I have received from my clients in this regard.”

‘The Hard-Sell, Cold-Calling Brokerage Business Is Changing’

Pax World recently launched its “Women & Wealth” initiative to provide women and their advisors with the knowledge and tools needed to face financial challenges unique to them. These include overcoming the wage gap, suddenly becoming single or widowed, serving in the dual roles of earner and caregiver and planning for retirement. The program includes workshops, written materials and other planning tools.

“The hard-sell, cold-calling brokerage business is changing. For advisors that have moved more toward the fee-based business model, buying and selling stocks has moved to a more holistic wealth management process,” said Women & Wealth’s manager Kathleen McQuiggan, Pax World’s Senior Adviser of Gender Diversity Initiatives, in a phone interview this week. “And research since the 2008 crisis shows women are now more involved in their own finances and never want to be uninformed again. For advisors, a lot of it comes down to listening and asking questions.”

Pax World isn’t alone in its efforts to connect women with advisors. Indeed, to judge from the wealth of recently launched programs and workshops such as Pax World’s, Millstone is on the cutting edge of a new trend that focuses on helping advisors connect to women and bringing more women into the advisor fold as professionals. In just the last month, Pershing LLC, a BNY Mellon company, and Fidelity Investments have joined the trend.

Pershing Calls for More Female Advisors

On March 8, Pershing released the results of a new study, “The 30% Solution: Growing Your Business by Winning and Keeping Women Advisors,” that says female advisors are woefully underrepresented across the industry and urges firms to make greater efforts to attract women employees. The study lists reasons for the low numbers—including the large number of aging males in the industry, the pay gap and cultural barriers at the executive level—before noting that advisors as a whole are in demand, particularly with female clients.

“Women investors are significantly more likely to engage advisors than men (46% vs. 34%),” according to a Pershing release. “Additionally, nearly two-thirds of female millionaire investors and 82% of female ultrahigh-net-worth investors prefer working with an advisor. Yet, women investors are not a one-size-fits-all category—and female advisors seem to be ahead of the curve in understanding and seizing these differences.”

Fidelity Looks to Help Advisors Engage With Female Clients

On Wednesday, Fidelity unveiled new tools in its “Engaging Female Clients” program designed to help advisors “more effectively attract, engage and retain female investors.” The tools include a guidebook, white papers and workshops, all launched to address the fact that women control 51% of wealth in the U.S. today, and are projected to control two-thirds by 2020.

“There’s a wealth shift occurring in the U.S., which will change the client bases of advisors and challenge the conventional methods of client engagement,” said Jylanne Dunne, senior vice president, practice management and consulting, of Fidelity Institutional Wealth Services, in a statement. “We know advisors want to create greater balance among their male and female clients but for many, the question is ‘how do I get started?’ Our comprehensive program gives advisors tools to help create and commit to their own individual action plans.”

Give Women What They Want

While the materials sometimes read like the advice offered in the book “Men Are From Mars, Women Are From Venus,” they nevertheless serve as a reminder to advisors, the majority of whom are male, that women communicate differently from men.

For example, the Fidelity materials suggest that advisors should implement four strategies to enhance their prospect and client meetings by giving women what they want:

1) Time, especially during the first meeting. Women tend to outlive men, and it is estimated that 70% of women change their financial advisor within a year of their spouse’s death.

2) Multiple perspectives. Offering ongoing education can help empower female clients. So, for example, give your women clients a recommended reading list.

3) Proper attention. Women typically want an advisor who is a good listener, who understands her unique financial concerns.

4) The opportunity to talk. Listening and evaluating their relationships with their female clients can help advisors ensure that they fully involve women in the client relationship.

The payoff, according to Fidelity’s research, is that women are more willing to receive financial advice than men and are more interested in holistic financial guidance and planning to meet a specific lifestyle or goal. And more good news for men is that women are apparently just as happy to work with them as they are with their own gender.

“While most women do not have a gender preference in working with a financial advisor, research shows that many women have a strong preference in the way they receive financial advice,” said Alexandra Taussig, senior vice president, National Financial, a Fidelity Investments company, in a statement. “Advisors who recognize this and hone their engagement strategies with both their male and female clients may have a significant opportunity to grow their businesses.”

------

Read What Do Wealthy Women Want? at AdvisorOne.

These Blockbusters Have Different Futures for Merck

The patent cliff has been dealing a slow but painful blow to big pharma over the last several years. It will hit especially hard for Merck (NYSE: MRK  ) this year as it loses major protection for its former mega-blockbuster Singulair in markets across the globe. That raises the stakes for the company's current product lineup and pending pipeline.

The type 2 diabetes franchise Januvia/Janumet will take over the top spot for Merck in 2013, but growth from those therapies alone won't be enough to make up for Singulair's fall. What other top drugs do investors need to watch? Isentress, a first-in-class HIV drug, and Gardasil, the leading HPV vaccine on the market, are two good places to start. However, they may be headed in opposite directions.

Does Isentress have a shot in HIV?
Let's be honest here. Gilead Sciences (NASDAQ: GILD  ) is the unquestioned leader in HIV and AIDS therapies, which is backed up by its $8 billion in segment sales last year. The company's Atripla and Truvada brought in $3.5 billion and $3.2 billion, respectively, in 2012 and are the top two drugs on the market.

The news gets worse for competitors such as Merck. Gilead had Stribild, a four-in-one pill, approved in late August. Sales for the new drug tallied $57.5 million in its first four months on the market, and some analysts think that figure will eventually reach $4.7 billion annually. While sales from Stribild will offset generic competition for its top therapies beginning in 2018, it also offers one huge advantage: convenience. That's a big, big deal for patients. �

Whereas Merck's Isentress requires two pills daily, Stribild requires patients to take only one, albeit twice the size. A study evaluating once-daily use of Isentress failed to prove the regimen as effective as the standard twice-daily dosage, effectively dousing hopes for expanded use. Failure aside, the drug is the third best-selling HIV drug behind Gilead's relentless attack. �

The verdict: Since 2010, Isentress has grown sales nearly 50% to $1.5 billion, which represents the peak sales originally expected when the drug launched. The drug hit the mark earlier than expected, so there may be more room to run, but it will never reach the swagger of Gilead's top products. Unfortunately for investors, the drug's best years are likely behind it.

Does anyone know how to gauge this market?
The market for HPV consists of just two therapies: Gardasil from Merck and Cervarix from GlaxoSmithKline (NYSE: GSK  ) . Although it was once hailed as a major competitor to Gardasil, Cervarix netted just $350.54 million in sales in 2012. That is well below Gardasil's $1.63 billion last year and down markedly from $657 million in 2011. How were early expectations for a neck-and-neck race so off?

Several reasons. First, Gardasil has been shown to protect (primarily) against HPV types 6, 11, 16, and 18 whereas its competitor protects against only the latter two. The difference is in disease progression. For instance, HPV types 6 and 11 lead to 90% of genital warts cases, and types 16 and 18 lead to 70% of cervical cancers. The broader ring of protection has made Merck's therapy an easy choice for doctors. ��

Second, few industry analysts gave either vaccine much of chance in the wake of a growing consumer disdain for vaccines. Despite an avalanche of data showing absolutely no connection between common vaccines and autism or mental retardation, more and more parents are choosing to forgo inoculating their children. Presidential hopeful Michele Bachmann fueled the dangerous misconceptions further in 2011 as she attacked Rick Perry for mandating HPV vaccinations in Texas. Somehow, Gardasil escaped election season unscathed on route to its best year ever.

Gardasil was feared to have peaked at $1.5 billion in sales in 2007 after tumbling down to just over $1 billion in 2010. Merck surprised nearly everyone last year by announcing 2012 sales of $1.63 billion worth of its life-saving vaccine. The reawakening demonstrates that fear and politics can be tough variables to account for in the complex pharmaceutical industry.

The verdict: I would be wary of following analyst forecasts for either Gardasil or Cervarix in the future, although the former does appear to be back on track for tremendous growth. The therapy's broad coverage is a significant advantage to its only competitor. In fact, the United Kingdom announced that it was switching from Cervarix to Gardasil at the end of 2011 for just that reason. ��

Can Merck beat the patent cliff?
So, it looks as if Isentress is flat-lining while Gardasil still has plenty of room to run. Investors will need to continue to keep an eye on new developments in the market and in Merck's pipeline, as the company has�stumbled into 2013 and continues to battle patent expirations and pipeline problems. Is Merck still a solid dividend play, or should investors be looking elsewhere? In a new premium research report on Merck, The Fool tackles all of the company's moving parts, its major market opportunities, and reasons to both buy and sell. To find out more click here to claim your copy today.

Small States Stress Distance from Cyprus

BRUSSELS�The risks posed by hosting a large financial industry became a flash point on Wednesday as the Cyprus bailout trained the spotlight on other small euro nations that depend on the sector for jobs and economic growth.

The issue has become a sore spot mainly for Luxembourg and Malta after the debate over Cyprus prompted European ministers and politicians to question the viability of housing a large financial center in a small country. Cyprus's bailout requires the country to shrink its large financial-services industry to the euro-zone average, setting an unwelcome precedent for nations whose economic models are based on financial services.

The decision to impose losses on Cypriot bank deposits as part of the bailout has also raised fears in some countries that the euro zone is turning itself into a less attractive environment for global finance.

Luxembourg, which is one of the euro zone's biggest financial centers despite its tiny size, fired back on Wednesday, saying it was concerned about recent "comparisons between the business model of international financial sectors in the euro area."

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Luxembourg Finance Minister Luc Frieden said there was nothing wrong with having a larger-than-average financial-services industry. "We want to expand it further, not to downsize it," Mr. Frieden said in an interview in an interview on Wednesday.

Mr. Frieden also rebuffed suggestions that the Cypriot bailout, which imposes steep losses on many uninsured bank deposits, should guide how the euro zone treats failing banks in the future. All deposits, regardless of size, should be protected in euro-zone bank overhauls, he said.

"The risks are too high with the Cypriot model," he said, adding that depositors must be able to have absolute trust in their banks.

More Coverage
  • Slovenia 'Doesn't Need Aid'
  • Cyprus Sets Bank Revamp
  • Euro Bears on the Prowl
  • Europe's Recession Fatigue
  • Cypriots Dig Deep

Luxembourg, a nation of 525,000 people sandwiched between Germany, France and Belgium, is a world financial center, packed with banks, investment funds and wealth-management firms catering to the very rich. The assets of its banking system are worth 22 times its annual economic output, by far the largest proportion in Europe and far higher than Cyprus, where bank assets are about seven times annual output.

The country, one of the euro zone's founding members, became a financial center thanks to low taxation and comparatively light regulation dating back decades. Luxembourg has weathered the financial crisis relatively well so far, but officials fear the country has much to lose if investors begin to see the currency area as a risky place to keep money. "Depositors and investors will go to Asia or elsewhere," Mr. Frieden said.

In an interview published on Wednesday, the central-bank governor of Malta, a small country with big ambitions to build a financial sector, also dismissed as "misleading" any comparison with Cyprus. The assets of Malta's major banks amount to "just below 300%" of gross domestic product, which by international standards was "within normal limits," Josef Bonnici told the Times of Malta. Overall bank assets are around eight times GDP, according to European Central Bank data.

Mr. Bonnici also highlighted the exceptional nature of Cypriot banks' losses on Greek government debt. "Maltese domestic banks have limited exposure to securities issued by the program countries," Mr. Bonnici said.

Meanwhile, Slovenia also defended its ability to fix the problem of nonperforming loans in its banking sector when its prime minister, Alenka Bratusek, told parliament on Wednesday that it won't need international aid. "We will continue restructuring and stabilizing the banking system," she said.

Luxembourg also took issue with comments by some officials that boiled down Cyprus's problems into a simple question of the size of its banking system, relative to its overall economy. What matters, rather, is the "quality and solidity" of the financial sector and its size in relation to the euro area as a whole, the government argued in a statement.

Still, some financial experts argue that governments need to pay close attention to the size of their financial sectors, because they could be dragged down by the inability to support failing banks.

"The lesson from Cyprus is that you have a very strong fragility of the sovereign when the banking system is very large," said Nicolas Veron, a senior fellow at Brussels-based think tank Bruegel.

Cyprus's bailout has sparked fresh warnings from policy makers about overreliance on financial sector revenues. In a speech in Moscow last week, European Commission President Jos� Manuel Barroso said the crisis in Cyprus was "the result of an unsustainable financial system" that was a multiple of the country's GDP and "certainly has to adapt."

"Markets are now focusing on potential weaknesses in euro-zone states whose banking sectors are very large relative to their economies," said Christian Schulz, an economist at Berenberg Bank in London.

Mr. Schulz said the political signals from the Cyprus bailout are a clear threat to Luxembourg's interests.

"Luxembourg will now have to explain why its financial system is so big," he said. "That in itself will raise concern with people who have large deposits there."

Still, Luxembourg's banking sector consists largely of subsidiaries and branches of foreign banks, so that significant support might be expected from mother banks and, ultimately, the governments of those mother banks, in the event of a crisis. Just 8% of Luxembourg's banking assets are held by domestic banks, compared with 71% for Cyprus, according to ECB data.

All three big international credit ratings firms still rate Luxembourg's government debt triple-A.

—Todd Buell and Leos Rousek contributed to this article

Write to Matthew Dalton at Matthew.Dalton@dowjones.com and Tom Fairless at tom.fairless@dowjones.com

The Fool Looks Ahead

There's never a dull week on Wall Street. Let's go over some of the news that will shape the week to come.

Monday
The market kicks off with MFC Industrial (NYSE: MIL  ) and Cal-Maine (NASDAQ: CALM  ) reporting their latest quarterly results on Monday.

MFC is a global commodity supply chain company that used to be known as Terra Nova Royalty. It boosted its dividend rate earlier this year.

Cal-Maine's specialty is shelled eggs. Analysts see the Mississippi-based company generating a profit of $1.55 a share, well ahead of the $0.96 it laid a year earlier.

Tuesday
Tesla Motors (NASDAQ: TSLA  ) will be in the spotlight on Tuesday. CEO Elon Musk sent out an interesting tweet a few days ago, pumping up an upcoming announcement that will have him putting his money where his mouth is. The announcement will probably be about investing more in the company or paying down Tesla's debt.

We'll see what Musk is excited about on Tuesday.

Wednesday
Mitcham Industries (NASDAQ: MIND  ) checks in on Wednesday. The supplier of geophysical equipment is probably in for a rough quarter. Analysts see profitability being cut nearly in half on a 20% drop in revenue.

Thursday
Franklin Covey (NYSE: FC  ) checks in on Thursday. The provider of training and consulting services is expected to see its quarterly profit nearly double to $0.11 a share. Earlier this month, Franklin Covey was celebrating making the cut for the sixth year in a row on TrainingIndustry.com's list of Top Sales Training Companies.

Friday
The market is quiet on the first Friday of the new quarter, but things should pick up in a few weeks once earnings season starts again.

Beyond next week
The best investing approach is to choose great companies and stick with them for the long term. The Motley Fool's free report "3 Stocks That Will Help You Retire Rich" names stocks that could help you build long-term wealth and retire well, along with some winning wealth-building strategies that every investor should be aware of.�Click here now�to keep reading.

Mattress Stocks Bounce Higher

Shares of mattress companies are doing very well today, with Mattress Firm Holding (MFRM), Tempur-Pedic International (TPX) and Select Comfort (SCSS) up 12%, 7.7% and 6.4%, respectively.

It seems the sector has been boosted by Mattress Firm’s 2013 outlook, which it delivered late yesterday after reporting a drop in fourth-quarter profit.

Mattress Firm President and CEO Steve Stagner said fiscal 2012 was a record year for the company and with the integration of the acquired stores substantially complete, it expects to make gains in the current year…

Raymond James analyst Budd Bugatch said the outlook was better than he expected it would be and boosted his rating for Mattress Firm stock to “Outperform” from “Market Perform.” He added that he’s also happy that the company plans to focus on integrating the acquisitions it’s already made, rather than making additional ones, at least for a while.

KeyBanc analyst Bradley Thomas backed his “Buy” rating for Mattress Firm and boosted his price target by $3 to $37, saying that he’s optimistic that the company’s guidance will turn out to be conservative. He added that he expects the company’s sales figures to pick up as the year progresses and comparisons get easier.

In the absence of other news, it seems the positivity around Mattress Firm is helping its peers.

What You Were Selling Last Week: Marks & Spencer Group

LONDON -- One of Warren Buffett's famous investing sayings is "be fearful when others are greedy and greedy when others are fearful" --�or, in other words, sell when others are buying and buy when they're selling.

But we might expect Foolish investors to know that, and looking at what Fools have been selling recently might well provide us with some ideas for investments that are past their prime.

So, in this series of articles, we're going to look at what customers of The Motley Fool ShareDealing Service have been selling in the past week or so, and what might have made them decide to do so.

Share-price spike
The share price of�Marks & Spencer� (LSE: MKS  ) shot up 11% in the course of just a few days in the past fortnight, driven upwards by speculation of an 8 billion pound takeover bid lead by the state-owned Qatari Investment Authority. And a spot of quick profit-taking may have put the company in the No. 2 spot in the latest "Top 10 Sells" list.*

The former mainstay of the British high-street has been struggling in recent years, and its performance in the run-up to Christmas, over the final three months of 2012, was very disappointing. In a trading statement in early January it revealed that its like-for-like sales of clothing and general merchandise had dropped almost 4% and like-for-like food sales were flat (up just 0.3%), resulting in an overall fall in like-for-like sales of 1.8%.

On the brighter side, its multichannel sales -- that's online sales (including via mobile devices), home delivery, and collect-in-store -- grew by almost 11%, and international sales increased by just over 4%. With its Chinese website having been launched this year, the company is obviously hoping for even greater growth in the months and years to come.

Even after the recent spike in share price, Marks & Spencer's forward P/E of 12.2 remains well below the general retail sector average of almost 19. And its forecast yields of 4.3% for 2013 and 4.5% for 2014 should make it an attractive proposition for investors who like to get an above-average income from their shares.

But doing business on the high street has been tougher than ever in recent years, with no real end to the adverse U.K. market conditions in sight. Only recently the Centre for Retail Research forecast a "flat" 2013, and growth of less than 1.5% in 2014, with physical sales suffering as online business continues to expand. The difficult U.K. retail environment may well be why Marks & Spencer's chief executive Marc Bolland expressed the intent to "transform Marks & Spencer from a traditional U.K. retailer to an international multi-channel retailer" in the January trading statement.

How long that transformation will take -- indeed, whether it can be achieved at all -- only time will tell. So perhaps some shareholders felt that they should realize a quick return on the back of the takeover speculation, putting Marks & Spencer near the top of the "Sells" table.

A top-quality income share for 2013
If you're not sold on Marks & Spencer as an investment, you'll definitely want to know that the Fool's expert analysts have been focused on finding�The Motley Fool's Top Income Share For 2013�for our readers -- and they've found a top-quality company that's paying�a�5.6%�dividend, which is named in our latest report.

The report is completely�free of charge, but, like all special reports from The Fool, it will only be available for a limited period, so�get your copy�now!

*Based on aggregate data from The Motley Fool ShareDealing Service.

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3/29/2013

U.S. Flies B-2 Bombers Over South Korea

Yonhap/Associated Press

A U.S. Air Force B-2 stealth bomber flew near Osan U.S. Air Base, south of Seoul, on Thursday in a display of force aimed at deterring North Korean threats of attacks on the U.S. and South Korea.

Two B-2 stealth bombers flew from a base in the American heartland, dropped test charges on targets near North Korea and returned to the U.S. on Thursday, as Washington mounted its most overt display of military force amid months of escalating tensions with North Korea.

The B-2s, the most advanced heavy bombers in the U.S. arsenal, flew low over the South Korean city of Osan before dropping eight dummy munitions on a South Korean bombing range as part of annual joint exercises with South Korea's military. The dummies were inert versions of 2,000-pound bombs, one of the bigger conventional weapons in the U.S. arsenal. The B-2 can also carry nuclear payloads.

The maneuvers illustrated the growing concern inside the Obama administration that North Korea and its 30-year-old leader, Kim Jong Eun, may move beyond threats that have been commonplace against the U.S., South Korea and other allies in Asia. The fear is that Mr. Kim will continue with a string of military provocations that run the risk of sparking a major security crisis in Northeast Asia.

Tensions Escalate

North Korea Cuts Hotline North Korea said it was severing a military hot line with South Korea and showered invective on Seoul's new leader, even as Seoul pursued plans to improve relations with the North.

Signal Amid the Noise The hotine is used to coordinate traffic heading from the South into the Kaesong Industrial Complex, a few miles inside the North. So far, traffic heading from the South into the industrial zone has been unaffected.

Earlier

Top Stocks For 3/28/2013-13

PROTEONOMIX, INC. (OTC.BB:PROT), a biotechnology company focused on developing therapeutics based upon human cells and their derivatives, reports further developments with its Joint Venture Company, XGEN Medical LLC (�XGen�) towards implementing operations in the United Arab Emirates (U.A.E.).

Proteonomix is the majority shareholder in XGen with the balance held by an anonymous investor group. Proteonomix personnel were on the ground in the U.A.E. over the past weeks to work together with the Investor Group through the start up phase. To date, XGen has established an office in the Monarch Office Tower on the prestigious Sheikh Zayed Road, and a residence for visiting Proteonomix personnel on Jumeira 2.

During initial meetings, it was mutually decided to open a local subsidiary corporation in the Dubai free zone. This wholly owned subsidiary will be the vehicle to conduct business in the GCC countries. XGen has filed the corporate papers and has established banking relations with a local bank both for receipt of the initial investment of $5 million and towards further financing expanded services in the region. The Ramadan holiday has slowed progress slightly on these corporate formalities, but full operation of the subsidiary and bank accounts are expected to complete within 30 days.

Proteonomix is a biotechnology company focused on developing therapeutics based upon the use of human cells and their derivatives. Proteoderm, Inc. is a wholly owned subsidiary of Proteonomix that has recently opened its retail web site, Proteoderm.com, and begun accepting pre-orders for its anti-aging line of skin care products. StromaCel, Inc.’s goal is the development therapeutic modalities for the treatment of Cardiovascular Disease (CVD). StromaCel, Inc. is pursuing the licensing of other technologies for therapeutic use. National Stem Cell, Inc. is Proteonomix’s operating subsidiary. The Sperm Bank of New York, Inc. is a fully operational tissue bank. Proteonomix Regenerative Translational Medicine Institute, Inc. (“PRTMI”) intends to focus on the translation of promising research in stem cell biology and cellular therapy to clinical applications of regenerative medicine. Proteonomix intends to create and dedicate a subsidiary to each of its technologies.

Mercury Computer Systems, Inc. (NASDAQ: MRCY) a trusted ISR subsystems provider, announced that it will present at the William Blair Emerging Growth Stock Conference to be held on October 5, 2010, at the InterContinental Barclay New York Hotel in New York City. On Tuesday, October 5, at 4:15 pm EDT, management will present an overview of the Company�s business.

Mercury Computer Systems is a best of breed provider of open, application-ready, multi-INT subsystems for the ISR market. With 25+ years� experience in embedded computing, superior domain expertise in radar, EW, EO/IR, C4I, and sonar applications, and more than 300 successful program deployments including Aegis, Global Hawk, and Predator, Mercury�s Services and Systems Integration team leads the industry in partnering with customers to design and integrate system-level solutions that minimize program risk, maximize application portability, and accelerate customers� time to market.

Meredith Corporation(NYSE: MDP), the leading media and marketing company serving American women, will publish its Diabetic Living and Parentsbrands in India and Azerbaijan, respectively, under license with leading media partners in those markets. These agreements increase Meredith’s total international reach to approximately 60 countries.

In India, MaXposure Media Group (India) Pvt Ltd. will publish a quarterly localized edition of Diabetic Living. It is expected to be available in India via both subscription and on the newsstand in 2011. In Azerbaijan, Caucasus Print Media will publish a localized monthly edition of Parents. It is expected to be available in Azerbaijan via subscription and on the newsstand in 2011.

“These new partnerships highlight the very wide appeal of Meredith’s brands, and our deep knowledge of the parenthood and health categories in particular,” said John Zieser, Meredith’s Chief Development Officer.

Diabetic Living features cutting-edge research along with diet, exercise, food, nutrition and health information. It is dedicated to providing action-oriented information to help consumers improve their quality of life.

Parents is the No. 1 parenthood brand In the United States.

Merge Healthcare Incorporated (NASDAQ: MRGE), a leading health IT solutions provider, has added two new customers to its user group of perioperative solutions. Exempla Saint Joseph Hospital, one of the largest non-profit hospitals in the Denver metropolitan area, and Kalispell Regional Medical Center and The Surgery Center of Northwest Healthcare in Kalispell, MT, have selected Merge�s Anesthesia Information Management System (AIMS).

Merge Healthcare develops software solutions that automate healthcare data and diagnostic workflow to create a more comprehensive electronic record of the patient experience. Merge products, ranging from standards-based development toolkits to fully integrated clinical applications, have been used by healthcare providers worldwide for over 20 years.

RIM Swings to Black, Sells a Million Z10s

TORONTO�Research In Motion Ltd. reported its second consecutive quarterly profit and decent sales for its new flagship phone Thursday, but perhaps the biggest revelation from its chief executive was a risky strategy to revive the company.

The plan: Roll out a portfolio of mixed-price phones to help shore up the company's dwindling smartphone-market share and the expected declines in service-fee revenue.

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At a mall in Jakarta, customers purchase the new BlackBerry Z10 on March 15, the first day it was available.

More
  • Digits: Recap of the Earnings Call
  • Canada Real Time: The Last of RIM's Co-Founders Departs
  • Canada Real Time: RIM's War Chest Stays Steady at $2.9 Billion
  • Canada Real Time: One Million Z10s Sold
  • Video: Research in Motion Scores Profit, Loses Subscribers

With cost cutting and layoffs mostly done, RIM CEO Thorsten Heins said he has been encouraged so far with the rollout of the BlackBerry Z10, the first phone running off RIM's new operating system.

With only a month of sales from a limited number of markets, it is still far from clear that launch is a success.

Compare Smartphones

See a side-by-side comparison of the specifications of recent phones, including the BlackBerry Z10.

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But Mr. Heins said he is already turning his attention to a series of new, as-yet-unseen products due out later in RIM's fiscal year�signaling he is eager to go after several different markets with low- and midprice versions of the new phones.

The shift, which Mr. Heins has alluded to in the past, appears to be an acknowledgment that no matter how big a hit the Z10 may prove, the BlackBerry isn't likely to compete in the same league any time soon with market leaders Apple Inc. and Samsung Electronics Co.

Top Stocks For 3/29/2013-3

Bodybuilding.com has chosen MusclePharm Corporation (OTCBB:MSLP), as this month’s featured supplement company! We are very pleased and honored to be recognized by the good people at BodyBuilding.com. Read the entire article: Check it out!

An excerpt from the BodyBuilding.com article: “You see their ads in all the magazines with some of the biggest names not only in bodybuilding, but the entire sports world. You see their logo on every MMA event there is. Their products are amongst the most popular in the industry today and their booths at the expos are always busy. MusclePharm has come a long way in a relatively short time. Bodybuilding.com is recognizing them for their accomplishments and their loyal customer base by featuring them as the Supplement Company of the Month.”

“CEO Bradley J. Pyatt was mentored by one of the nation’s premiere herbalists known for nutritional techniques and advanced herbal formulas. As one of the brightest young minds in sports nutrition, Pyatt set out to develop a superior line of products with the backing of some of the most influential people in the fitness and sports nutrition world. One of the hardest-working executives in the industry, Pyatt has made MusclePharm the fastest-growing brand in the industry and is well qualified to make it a leading company in the sports nutrition world.”

MusclePharm products are currently available in 1,200 of the top General Nutrition Centers (GNC) in the United States, as well as Vitamin Shop. MusclePharm�s award-winning products � Assault, Battle Fuel, Bullet Proof, Combat Powder, Recon and Shred Matrix�are also available online at gnc.com, bodybuilding.com, amazon.com and many other locations.

MusclePharm�s top management has extensive experience in the sports world and has harnessed this drive and focus into building a business to benefit its customers and help Fuel The Athlete Inside. Headquartered in Aurora, Colorado, the company is a fast-growing developer and manufacturer of safe, scientifically approved, nutritional supplements that are free of banned substances and tested by athletes. They are designed to help athletes, bodybuilders, weightlifters and fitness enthusiasts improve their performance. Each and every MusclePharm product is the end result of an advanced six-stage research and testing protocol involving the expertise of top nutrition scientists. In addition, the products have been field-tested by more than 100 elite professional athletes from the NFL, MMA, MLB and elsewhere. To date, the company has developed six products: ASSAULT, BATTLE FUEL, BULLET PROOF, COMBAT POWDER, RECON and SHRED MATRIX. Two additional products are due in stores in 2010. MusclePharm products offer up to twice as much of the active ingredients per serving as competing products and incorporate a proprietary mix of ingredients not available elsewhere, such as Suma root� the �Russian Secret.� Suma is a natural, performance-boosting, strength-and muscle-building herbal derivative that has been used for years by top Russian athletes

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Multimedia Games, Inc. (Nasdaq: MGAM) (�Multimedia Games� or the �Company�), reported recently that pursuant to its previously announced review of strategic alternatives, Patrick Ramsey, 36, who has served as Interim Chief Executive Officer since March 2010 and as Chief Operating Officer since September 2008, has been appointed President and Chief Executive Officer. Mr. Ramsey has also been appointed to the Company�s Board of Directors, which has been increased to 8 members.

In addition, the Company announced that it plans to apply a portion of its cash balances – which rose to approximately $34.6 million at August 31, 2010 – to reduce outstanding borrowings by $15.0 million, or approximately 25%, in the quarter ending September 30, 2010, and that the strategic review process announced in March 2010 has now concluded.

Patrick Ramsey was recently named Chief Executive Officer of Multimedia Games. Since joining the Company, Mr. Ramsey has overseen all aspects of the Company�s day-to-day operations including working closely with customers to maximize profitability from Multimedia Games� revenue-sharing agreements which cover approximately 14,000 gaming units while simultaneously re-aligning the Company�s new product development efforts and expanding into new markets, both of which have resulted in an expanded range of entertaining new products and significant growth in the sale of the Company�s proprietary games.

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BlackRock Enhanced Government Fund, Inc. (NYSE:EGF) (�EGF�) has adopted a level distribution plan (the �Plan�) and employs either a managed distribution or an option over-write policy to support a level distribution of income, capital gains and/or return of capital. The fixed amounts distributed per share are subject to change at the discretion of EGF�s Board.

Under its Plan, EGF will distribute all available investment income to its shareholders, consistent with its primary investment objectives and as required by the Internal Revenue Code of 1986, as amended (the �Code�). If sufficient investment income is not available on a quarterly/monthly basis, EGF will distribute long-term capital gains and or return capital to their shareholders in order to maintain a level distribution.

BlackRock is a leader in investment management, risk management and advisory services for institutional and retail clients worldwide. At June 30, 2010, BlackRock�s AUM was $3.151 trillion. BlackRock offers products that span the risk spectrum to meet clients� needs, including active, enhanced and index strategies across markets and asset classes. Products are offered in a variety of structures including separate accounts, mutual funds, iShares� (exchange traded funds), and other pooled investment vehicles.

BlackRock also offers risk management, advisory and enterprise investment system services to a broad base of institutional investors through BlackRock Solutions�. Headquartered in New York City, as of June 30, 2010, the firm has approximately 8,500 employees in 24 countries and a major presence in key global markets, including North and South America, Europe, Asia, Australia and the Middle East and Africa. For additional information, please visit the firm’s website at www.blackrock.com.

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Murphy Oil Corporation (NYSE: MUR) announced recently that net income in the second quarter of 2010 was $272.3 million ($1.41 per diluted share) compared to net income of $158.8 million ($0.83 per diluted share) in the second quarter of 2009. Income improved in 2010 in both the upstream and downstream businesses of the Company.

Upstream earnings improved in the 2010 quarter due to higher oil and natural gas sales volumes and sales prices, while downstream earnings in 2010 improved due to stronger U.S. retail marketing margins. Net income in the 2009 quarter included a $24.7 million after-tax charge ($0.13 per diluted share) associated with an anticipated reduction of the Company�s working interest in the Terra Nova field, offshore Eastern Canada, $13.4 million of after-tax gains ($0.07 per diluted share) from insurance settlements for fire and hurricane damages in prior years at the Meraux, Louisiana, refinery, and a $2.1 million after-tax loss ($0.01 per diluted share in discontinued operations) for post-closing settlements and other adjustments on the sale of Ecuador properties that occurred in the first quarter 2009.

For the first six months of 2010, net income totaled $421.2 million ($2.18 per diluted share) compared to net income of $329.9 million ($1.72 per diluted share) for the same period in 2009. The six-month 2009 period included income from discontinued operations of $97.8 million ($0.51 per diluted share), primarily related to an after-tax gain of $103.6 million from the sale of Ecuador properties.

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Leaders and Laggards: New Survey Polarizes Vacation Rental Owners

The vacation rental industry is characterized by two types of owners according to a new survey, Leaders & Laggards In The Vacation Rental Marketplace, commissioned by the Vacation Rental Marketing Blog.

Contrary to popular belief, generating a strong vacation rental marketing portfolio is less related to the characteristics of a property, the conditions of the marketplace, or even the skill-level of an owner.

Results of the survey conclude that vacation rental Leaders (defined as those who feel their current marketing portfolio is stronger than the year’s past) exhibit very different personality traits when compared to Laggards (defined as those who feel their marketing portfolio is equal or less strong than the year’s past).

The new survey (released on March 26, 2013) focuses on the relationship between an owner’s performance and his/her overall attitude about marketing. From it, owners glean that success is oft-accompanied by the following nine personality traits:

1) Leaders are optimists: When polled, 5 out of every 6 Leaders (or 81%) approach each guest inquiry with the attitude that it could lead to an actual booking. The minority 19% of vacation rental Leaders stated that they treat some inquiries differently because they seem less serious.

2) Leaders constantly look for ways to improve: When asked about their proactivity, the vast majority of Leaders (95%) said they were always trying to learn as much as possible about ways to increase bookings, which suggests that the quest to improve is directly proportional to success in the vacation rental marketplace. Laggards, conversely, expressed that they had a fixed system in place that sufficiently worked "just fine," seeking little inspiration or advice from others.

3) Leaders set high goals: When asked to choose between the target of (a) 100% occupancy with the ultimate goal of acquiring another property and (b) a plan to merely “generate enough income to cover existing costs,” a decisive 83% of Leaders chose option “A.”

4) Leaders speak well of their competitors: When in private, 71% of Leaders said they speak highly of their competitors compared to only 29% of whom said they honestly exposed their competitors’ flaws and shortcomings. For Leaders, speaking positively about competitors appears to open a wide range of social, business, and pleasurable opportunities.

5) Leaders see problems as challenges: When asked how they view vacancies on their vacation rental calendar, 94% of Leaders identified them as “challenges” whereas 68% of Laggards chose the word “problems.”

A vacancy problem is viewed as a drawback, a struggle, or an unstable situation whereas a vacancy challenge is viewed as something positive like an opportunity, a task, or a dare. Leaders seem to use vacancies as lessons and they move on from slow periods optimistically, whereas the vast majority of Laggards tend to harp on shortcomings.

6) Leaders rarely make excuses: As found in the survey, successful owners are overwhelmingly characterized by taking responsibility for their own actions. Nearly 97% of Leaders said they rarely (or never) made excuses for vacancies, whereas Laggards tend to blame outside factors for their under-performance in order to avoid taking responsibility themselves.

7) Leaders are methodical: When polled, 68% of Leaders said they dedicated a fixed time every month to their vacation rental marketing, instead of working haphazardly whenever time happens to permit. When done on the fly, vacation rental marketing tends to be unfocused and less effective. It is recommended that owners take dedicated approaches to their marketing: to set aside specific time periods each month and to not rush through their activities.

8) Leaders are competitive and aware of their surroundings: Competition is becoming an increasingly relevant topic in local vacation rental markets, and so it’s no surprise that an owner's attitude about his or her competitors tends to directly influence their real-time performance.

When asked, an amazing 91% of Leader owners said they frequently weigh their performance against their nearest competitors while a surprising 41% of Laggards choose to outright ignore the competition. Leaders are constantly feeling out what’s around them and they characteristically benefit from this exposure.

9) Leaders exhibit control: Nearly twice as many leaders (65%) than not said that they felt “in total control of their bookings,” admitting that “if their rental was not fully booked, it was because they let themselves down.”

Oppositely, more than half of Laggards (52%) said they were "mostly at the mercy of listing sites.” As a result, that “feeling” of being in control of one’s own marketing can be directly correlated with vacation rental success.

About The Survey: Data for the survey was collected over the weeks of March 1 – March 20, 2013. It canvassed 992 independent vacation rental owners and managers across the globe that volunteered, without compensation, to partake in the anonymous survey. The results were filtered according to the self-perceived strength or weakness of an owner’s marketing portfolio.