Three Secrets Wall Street Is Terrified You’ll Discover

It was Sir Francis Bacon who gave us the truism that "knowledge is power."

And the 17th century English philosopher and statesman did so centuries before Wall Street was even conceived.

But the brokers, fund managers, and other pros who dreamed up the investment markets knew a good thing when they saw it. They embraced Bacon's maxim, launched the first U.S. stock exchange in 1790, and spent the next two centuries transforming this country's individual investors into scared vassals of the Wall Street elite.

And the big banks, brokerages, and other investment pros did this by never forgetting the simple precept that "knowledge is power."

I see this play out on an almost-daily basis thanks to the endless streams of impenetrable reports that come from the bankers in New York or our elected leaders in Washington.

Most Main Street investors lack the knowledge to "decode" these reports, so they also lack the power to respond in a constructive manner.

Instead most of us just react - panic really. An upbeat economic report prompts investors to shoot stocks higher one day. But on the next, a seemingly conflicting report causes share prices to plummet.

Wall Street isn't fazed by this whipsaw trading, of course: As individual investors, we must travel the road that's owned by the pros. And that means we must pay a "toll" - in the form of a commission or transaction fee - with every move we make.

In fact, there's even an incentive to make us take more trips - heading north (bullish) one day and south (bearish) the next: The more trips we take, the more of those "tolls" that we have to pay - and the larger the pile of profits that Wall Street reaps.

Knowledge isn't just power: It also represents profits... even wealth.

I'm putting such a fine point on this - and telling you about Francis Bacon - for a very specific reason: Thanks to the 30 years I've spent watching and working with Silicon Valley companies, I long ago "cracked the code" that gives Wall Street so much power over America's Main Street investors.

I've identified the three specific economic reports that matter - and have deciphered what they mean. And I know which ones are just claptrap - mind-numbing clutter - designed to maintain the very one-sided status quo.

And today I'm going to give you a backstage pass... so you'll have direct access to that "knowledge" - and the "power" profits that accompany it.

A Backstage Pass

I'm sure that almost all of you - at one time or another - have heard someone talk about a "velvet rope." If so, have you stopped to think about what the term means?

Think about some of the finer places you've visited - a Broadway play, a hot new restaurant, or that just-opened nightclub: As you wait your turn, the "gatekeeper" - a maître d', hostess, or bouncer - keeps you on that "other" side of a literal "velvet rope."

That wait can be long... and frustrating - especially when the "connected" patrons get in before you.

Wall Street plays the same game. The bankers, fund managers, and other pros want to keep you at bay - while giving their best clients first access to the "best-in-show" investments. But in this case, the velvet rope is knowledge - about the relative health of the U.S. and global economies.

And the Wall Street crowd will hate me for telling you this, but the game is nowhere near as complicated as the pros would have you believe. In fact, in assessing the strength of the U.S. economy as I analyze tech plays, I've really found that these three economic "data points" are the most important to follow:

jobs (hiring), autos, and housing.

At its most basic level, this makes complete sense. The jobs situation is the key to U.S. economic health. As much as two-thirds of America's market-based economy is driven by consumer spending. Business spending is also crucial - particularly when it comes to the "stuff" that the tech sector makes.

Consumers and businesses spend the most when they are confident about the future.

And confidence has a lot to do with predictability - like the wage predictability that comes with job stability... or better, still, when there's outright hiring taking place.

When consumers start feeling a bit more secure about the future, they'll ramp up their spending a bit on bigger-ticket items like new vehicles. And when they're really confident, they'll get into even-bigger-ticket purchases - like new houses.

To give you more knowledge - and more power (enough to make you smarter and richer, in fact) - I've used these insights to create three smart-investor indicators.

If enough Main Street investors learn to spot and use these three investing "secrets," Wall Street will find itself at our mercy. And what a day that will be.

Let's peruse each of the three. And we'll start with the basic building block - jobs.

Investing Secret No. 1: Hiring = Confidence

This number, which measures how tech leaders feel about hiring, comes from the Silicon Valley Leadership Group's regular poll of sector chief executive officers (CEOs). According to the organization's most recent poll, more than half the members of the corner-office crowd say they plan to hire more workers this year.

Just think about how you feel when you know that your employer is thinking about expansion - which necessitates hiring: It's definitely a confidence booster.

So if the Silicon Valley cognoscenti expect to hire, it clearly means they are expecting continued strong demand for the products and services their companies offer.

And right now, tech CEOs are bullish. Of the 222 surveyed, 59% plan to hire this year - up from 46% a year ago. In fact, in the most recent survey that appeared in March, most CEOs were worried about not being able to hire enough workers.

Clearly, we don't want to rely on a single survey, no matter how good, to tell us what's happening with employment.

That's why I also keep abreast of the official jobs numbers coming out of Washington.

The U.S. economy added 288,000 jobs in April. That's the fourth-best monthly gain in the recovery's five-year history.

The timing also was great. It came right after Washington told us the economy grew at a dismal 0.1% for the first quarter.

I grant you, that gross domestic product report paints a less-than-upbeat portrait of how healthy America really was during the first three months of the year. But I'm actually not that concerned: I believe that number will be revised upward because of another important set of stats I track regularly ...

Investing Secret No. 2: When Vehicle Sales Zoom, Growth Follows

I've been following the U.S. automobile industry for decades now. As a young analyst, I spent my formative years in Detroit, where I met with CEOs of all the car companies and many of the parts producers.

I've visited assembly plants here in the United States and overseas. I was in Detroit in the very early days of robotics manufacturing. I also witnessed the rollout of computer technology that improved the performance, reliability, and fuel economy of new cars and trucks.

As heady as those days were, they've been dramatically eclipsed by today's vehicles, each of which is a high-tech "ecosystem" unto itself. They're brimming with sensors, semiconductors, LEDs, GPS, wireless web communications systems, and much more.

In fact, the Institute of Physics says that NASA sent the Apollo astronauts to the moon back in 1969 using less computing power than you'll find in the typical family car. Today's typical luxury car has more than 100 million lines of computer code, while software and electronics account for 40% of the car's cost and half of warranty claims.

So it's no surprise that auto sales are a strong indicator of the health of Silicon Valley.

And I'm very happy to report to you that the U.S. auto industry has snapped back after a tough winter and is racing ahead.

In April, the industry sold 1.39 million new vehicles, an 8% increase from the year-ago period. On an adjusted basis, the surge pushed the annualized run rate to 16.1 million, a yearly gain of 6%.

10 Best Internet Stocks To Own Right Now

I also like to get the pulse of the industry by looking at what the automakers are projecting for total industry sales.

And every single major automaker polled so far expects total cars and trucks sold this year to hit at least 16 million units, compared with 2013's final tally of 15.3 million.

Clearly, job growth and auto sales are crucial barometers of the health of the American economy.

But there's one other metric that is critical for us to understand if we're to start making smarter investments...

Investing Secret No. 3: Housing Heals the Bulls

There's a good reason why Uncle Sam lets you deduct mortgage interest payments from your taxes: A healthy housing industry is a major catalyst for economic growth.

And it's not just the millions of construction and home-contractor jobs that are involved. A healthy housing market also means more sales of appliances, furniture, home furnishings, paint, and lumber - as well as the equipment for home-entertainment systems and in-house Wi-Fi networks.

Right now, a lot of analysts see trouble brewing. Sales of new homes fell 13% in March from a year ago. Plus, sales of existing homes have fallen for several months.

But I'm not worried about these numbers - and for two very strong reasons.

First, severe winter weather in much of the country shut down construction. And it kept many prospective homebuyers indoors. It also prevented many home-improvement projects from being completed, a fact the mainstream media seems to be ignoring.

Second, sales of existing homes have declined because the supply of distressed housing continues to fall. In other words, we don't have an oversupply of homes; there aren't enough homes to satisfy demand.

Put more simply: You can't sell what you don't have.

I came to this conclusion courtesy of another housing stat. Data provider CoreLogic Inc. (NYSE: CLGX) says average housing prices rose 11% in March compared with the same month in 2013.

CoreLogic didn't provide median price estimates. But the company did say that we've seen higher annualized housing prices for 25 straight months.

Putting It All Together

As most of you folks know, one of my investing mantras tells us to "separate the signal from the noise." As I see it, these three signals are telling us that America's economy is healthy and growing. Tech CEOs are still hiring, new cars and trucks are moving off lots at near-record levels, and the demand for homes still exceeds supply.

I know some investors keep an eye on a longer list of economic indicators. And in their own attempts at subterfuge, the Wall Street pros try to bury us with an avalanche of often contradictory indicators... the goal being to keep the knowledge and the power on their side of the investment velvet rope.

But the goal here is to cut through the clutter and get a quick snapshot of what's reallyhappening with the economy.

By focusing on the three investing "secrets" listed above - those key signals of hiring, auto sales, and housing-market health - you'll cut through most of the noise. You'll have the knowledge... and the power.

And that will make you a smarter, more profitable investor - and will put you on the path to meaningful wealth.

Stop back later this week.

Editor's Note: For the last 12 months, Michael has been hot on the trail of something called Operation BlueStar. It surrounds a mysterious facility - about the size of 174 football fields - being built here in the United States... a facility that could single-handedly disrupt $737 billion of America's economy. Michael's investigation has led him to one of the most exciting investment opportunities we've ever come across. Click here so Michael can walk you through everything he dug up.

Rogue trader's long walk to prison

Former Societe Generale trader Jérôme Kerviel gained a following of fans as he trekked from Rome back to France to serve a three-year prison sentence.

LONDON (CNNMoney) A rogue trader who racked up one of the biggest losses in history has begun serving a three-year prison sentence after walking hundreds of miles to surrender to French police.

Jérôme Kerviel, whose actions nearly destroyed Societe Generale (SCGLF) in 2008, was arrested after walking from Rome in a bid to publicize his case.

Kerviel was found guilty in 2010 of betting 50 billion euros of the French bank's money without its knowledge, leading to losses of nearly 5 billion euros. That was worth about $7.2 billion at the time.

He was sentenced to prison and ordered to pay 4.9 billion euros in damages. France's highest court struck down the damages award in March, and a new trial will be held to determine how much Kerviel owes.

After appealing unsuccessfully against his conviction and jail term, Kerviel was given until midnight Sunday to give himself up.

Kerviel claims he is the victim of a dysfunctional banking system, where his superiors knew about his trading and covered for him. He also argues that there were "major malfunctions" in the way his case was handled by the judicial system.

After meeting the Pope in Rome in February, he resolved to serve his sentence but not before trekking more than 400 miles on foot back to France. His odyssey drew a big following of supporters on social media, and crowds of reporters gathered as he prepared to cross the border.

At the 11th hour, his resolve appeared to waver and he threatened to stay in Italy. Kerviel called on French President Francois Hollande to protect witnesses who could speak on his behalf. But, without an answer from Hollande, he turned himself in.

Kerviel's trading losses dwarfed those made by many other famous rogue traders, including Nick Leeson. The trader's losses of over a billion dollars in 1995 brought down Barings Bank, one of Britain's oldest private banks which counted the Queen among its clients.

Top Undervalued Stocks For 2015

A more recent rogue trading incident at JP Morgan (JPM, Fortune 500) -- dubbed the "London Whale" -- led to a loss of roughly $6 billion at the bank. During 2013, the bank agreed to pay $1 billion in fines to U.S. and U.K. regulators for lack of proper oversight of its traders related to that loss.

-- CNN's Sandrine Amiel and Paris bureau contributed reporting.

Up 31%: Why Pernix Therapeutics Surprised Investors

Shares of Pernix Therapeutics  (NASDAQ: PTX  ) soared 31% yesterday after the company revealed that it had bought the U.S. rights to GlaxoSmithKline's (NYSE: GSK  ) Treximet (which helps treat migraines in adults) for $250 million upfront (and some potential additional payments later). The importance of this purchase cannot easily be overstate for Pernix -- the company had $85 million in revenue last year, while Treximet on its own brought in $79 million -- and Pernix clearly sees some additional upside potential for the drug, whether it's through a potential indication expansion (to pediatric patients) or through synergies with Pernix's current salesforce.

Where could Pernix unlock additional value for the drug? In the video below, Motley Fool health care analysts Michael Douglass and David Williamson discuss Pernix's plans for the drug and how this deal jives with the company's current offerings.

Even with today's pop, can Pernix keep up with this top stock?
Great stocks don't just have a great day -- we're looking for a great long-term investment. And every year, The Motley Fool's chief investment officer hand-picks 1 stock with outstanding potential. But it's not just any run-of-the-mill company. It's a stock perfectly positioned to cash in on one of the upcoming year's most lucrative trends. Last year his pick skyrocketed 134%. And previous top picks have gained upwards of 908%, 1,252% and 1,303% over the subsequent years! Believe me, you don't want to miss what could be his biggest winner yet! Just click here to download your free copy of "The Motley Fool's Top Stock for 2014" today.

Top 10 Up And Coming Companies To Own In Right Now

What does Paris Hilton have in common with Andrew Carnegie, J.P. Morgan, Carl Icahn, T. Boone Pickens and Henry Kravis, along with a host of other ultra-wealthy people? 

I am not talking about anything as obvious as having lots of money. The core concept here is a never-changing rule of wealth in a capitalistic society: Nearly every vast fortune was built upon investing in businesses. 

Businesses are the cornerstone of capitalism, and private equity and debt is the fuel that transforms them into society-sustaining enterprises. Since the Industrial Revolution, wealthy investors have been directly involved in providing equity, leadership and knowledge to growing companies. These growing entities, in turn, enrich their risk-taking, life providers, beyond belief in many cases.

 

Top 10 Up And Coming Companies To Own In Right Now: Matrix Metals Ltd (MXB)

Matrix Metals Limited is a mineral exploration company. The Company�� Wee MacGregor Project is located approximately 30 kilometers southeast of Mt Isa in Queensland. The Project consists of five granted Exploration Permits for Minerals (EPMs) covering an area of 209 kilometers square and one EPM application covering an area of approximately 19.2 kilometers square. The Inkerman prospect is located on EPM17907 and flanks the old Inkerman workings located on a small Mining Claim in the north (not held by the Company). The Rosebud prospect is located on EPM17449 and surrounds historic Rosebud workings located on a small Mining Lease in the north (not held by the Company). The Copper Cone prospect is located on EPM17449 and is hosted in a tightly folded sequence of the Ballara quartzite. In February 2014, the Company announced that it has completed the acquisition of Caeneus Minerals Pty Ltd. Advisors' Opinion:

• [By Bill Smith]

  FDS operates in a highly competitive industry, some with more resources. Their competitors include:
  Thomson Reuters Corp. (TRI)BloombergInteractive (IDC)MSCI Inc. (MXB)Morningstar Inc. (MORN)Track Data Corp. (TRAC)Edgar Online (EDGR)McGraw-Hill (MHP )

Top 10 Up And Coming Companies To Own In Right Now: Amazonica Corp (AMZZ)

Amazonica, Corp., incorporated on February 6, 2010, is a development-stage company. The Company is engaged in the field of marketing and distributing hardwood flooring and other construction materials.

The Company is a distributor of Brazilian hardwood flooring. Brazilian hardwood is manufactured from rare types of wood, such as Rose Wood, Snake Wood, Brazilian Teak, Santos Mahogany, Tigerwood, Brazilian Walnut and others. As of August 13, 2013, the Company had no revenues.

Advisors' Opinion:

• [By Peter Graham]

  Small cap stocks Banjo & Matilda, Inc (OTCMKTS: BANJ), Amazonica Corp (OTCBB: AMZZ) and Guardian 8 Holdings (OTCMKTS: GRDH) have been getting some extra attention in various investment newsletters or email alerts. Of course, there is nothing wrong with properly disclosed promotion or investor relations type of activities but they can cause problems for unwary investors and traders alike. So how hot are these three small cap stocks? Here is a closer look and a reality check:

Hot Defense Stocks To Own For 2015: PDL BioPharma Inc.(PDLI)

PDL BioPharma, Inc. engages in intellectual property asset management and royalty bearing assets investment activities. The company is involved in the humanization of monoclonal antibodies and the discovery of a new generation of targeted treatments for cancer and immunologic diseases. It offers Queen et al. patents that cover humanized antibodies, methods for humanizing antibodies, polynucleotide encoding in humanized antibodies, and methods of producing humanized antibodies. The company was formerly known as Protein Design Labs, Inc. and changed its name to PDL BioPharma, Inc. in 2006. PDL BioPharma, Inc. was founded in 1986 and is headquartered in Incline Village, Nevada.

Advisors' Opinion:

• [By John Udovich]

  Small cap patent stocks Spherix Inc (NASDAQ: SPEX), PDL BioPharma Inc (NASDAQ: PDLI) and Endeavor IP Inc (OTCBB: ENIP) are among the�growing number of publicly traded�US entities focused on collecting and making money from various types of patents. After all, monetizing patents can lead to incredible returns. For example: Nomura analyst Rick Sherlund wrote in a research note back in November that Microsoft Corporation (NASDAQ: MSFT) is generating $2 billion per year in revenue from Android patent royalties and he�estimates that this revenue has a 95% margin. However, there are risks associated with investing in stocks that invest in patents because a bi-partisan bill called the Innovation Act (H.R. 3309) is�working its way through Congress to try and reign in the activities of so-called�"patent trolls" or rather companies that buy or license patents from others.

Top 10 Up And Coming Companies To Own In Right Now: Armco Metals Holdings Inc (AMCO)

Armco Metals Holdings, Inc., formerly China Armco Metals, Inc., incorporated on April 25, 2007, is engaged in metal ore trading and distribution and scrap metal recycling. The Company�� s operations are conducted primarily in the People's Republic of China (PRC). In the Company's metal ore trading and distribution business, the Company imports, sells and distributes to the metal refinery industry in the PRC a range of metal ore which includes iron, chrome, nickel, copper and manganese ore, as well as non-ferrous metals, and coal. The Company obtains these raw materials from global suppliers primarily in Brazil, India, Indonesia, Ukraine and the United States and distributes them in the PRC. In addition, it provides sourcing and pricing services for various metals to its network of customers.

The Company�� scrap metal recycling business, it recycles scrap metal at its recycling facility and sell the recycled product to steel mills in China for use in the production of recycled steel. The Company sells processed and non-ferrous ore to end-users, such as specialty steelmakers, foundries, aluminum sheets and ingot manufacturers, copper refineries and smelters, brass and bronze ingot manufacturers, wire and cable producers, utilities and telephone networks. The Company recycles scrap metals at the Facility using both heavy equipment and manual labors. Recycling scrap metal consists of a variety of steps, including collecting, inspecting, sorting, stripping, shearing, cutting, shredding and bailing.

Advisors' Opinion:

• [By James E. Brumley]

  It's still too soon to put it in your portfolio, but Armco Metals Holdings Inc. (NYSE:AMCO) most definitely deserves a place on your watchlist. This Chinese metal stock is poised for a breakout move. It just needs the right nudge, and a little help on a certain front to let AMCO take flight.

Top 10 Up And Coming Companies To Own In Right Now: Scorpio Tankers Inc.(STNG)

Scorpio Tankers Inc. provides marine transportation of crude oil and refined petroleum products worldwide. As of April 26, 2011, it owned one LR2 tanker, four LR1 tankers, four Handymax tankers, and one post-Panamax tanker, as well as chartered one LR1 and four Handymax product tankers. The company was founded in 2009 and is based in Monaco, Monaco.

Advisors' Opinion:

• [By Seth Jayson]

  Scorpio Tankers (NYSE: STNG  ) reported earnings on April 29. Here are the numbers you need to know.

  The 10-second takeaway
  For the quarter ended March 31 (Q1), Scorpio Tankers missed estimates on revenues and beat expectations on earnings per share.

• [By Seth Jayson]

  Scorpio Tankers (NYSE: STNG  ) reported earnings on July 29. Here are the numbers you need to know.

  The 10-second takeaway
  For the quarter ended June 30 (Q2), Scorpio Tankers missed estimates on revenues and missed estimates on earnings per share.

Top 10 Up And Coming Companies To Own In Right Now: Exide Technologies (XIDEQ)

Exide Technologies, incorporated on November 23, 1966, is engaged in stored electrical energy solutions, and is a manufacturer and supplier of lead-acid batteries for transportation and industrial applications in the worldwide. Exide operates in four business segments: Transportation Americas, Transportation Europe and ROW, Industrial Energy Americas, and Industrial Energy Europe and ROW. The Company�� operations in the Americas as well as Europe and Rest of World (ROW) represented approximately 42% and 58%, respectively, during the fiscal year ended March 31, 2013 (fiscal 2013), net sales.

Transportation

The Company�� transportation batteries include starting lighting and ignition (SLI) batteries for cars, trucks, off-road vehicles, agricultural and construction vehicles, motorcycles, recreational vehicles, marine, and other applications including Micro-hybrids. The Company�� principal batteries sold in the transportation markets are represented by brands: Exide, Exide Extreme, Exide NASCAR Select, Centra, DETA, Orbital, Fulmen, and Tudor, as well as other brands under various private labels. The market for transportation batteries is divided between sales to aftermarket customers and original equipment manufacturers (OEMs). Transportation segments represented approximately 61% of the Company�� net sales in fiscal 2013. Within the transportation segments, aftermarket and OEM net sales, including original equipment service (OES) represented approximately 72.1% and 27.9% of fiscal 2013 net sales, respectively.

Some of the Company�� aftermarket customers include Pep Boys, Bosch, Tractor Supply, Canadian Tire, ADI, ATR International, and GroupAuto International. In addition, the Company is also a supplier of authorized replacement batteries for OEMs including the BMW Group, Fiat Group, Honda, Iveco, John Deere, PSA Group, Scania, Volvo Trucks, Toyota, Volkswagen Group, Renault-Nissan, PACCAR, and many others. Some of the Company�� OEM customers include t! he BMW Group, Fiat Group, International Truck & Engine, the PSA group (Peugeot S.A./Citroen), Case/New Holland, John Deere, Renault, Nissan, Scania, Volvo Trucks, Volkswagen Group, Chrysler, Toyota, Jaguar, Land Rover, among others.

In the Americas, the Company sells aftermarket transportation products through various distribution channels, including mass merchandisers, auto parts outlets, wholesale distributors, and battery specialists. The Company sells its OEM transportation replacement products principally through dealer networks. The Company�� Americas operations include a network of 74 branches which sell and distribute batteries and other products to the Company�� distributor channel customers, battery specialists, national account customers, retail stores, and OEM dealers. In addition, these branches collect spent batteries for the Company�� recycling facilities. These operations supply recycled lead for approximately 75 to 80% of Exide�� Transportation and Industrial Energy products manufactured in North America. The recycling facilities also recover and recycle battery acid as well as plastic materials that are used to produce new battery covers and cases.

In Europe and ROW, the Company sells OEM batteries to the light vehicle, light commercial vehicle and commercial vehicle industries. The commercial vehicle industry includes truck manufacturers as well as construction and agriculture vehicle manufacturers. Exide supplies its OEM batteries directly to the assembly plants of its customers. The Company also delivers service and replacement batteries into this segment. Those are either distributed by the OEM customers themselves or delivered directly to the service points through the Exide logistics network. The Company also supplies advanced lead-acid batteries for microhybrid vehicles equipped with carbon dioxide reducing technologies such as Start & Stop with and without regenerative braking systems. It sells Europe and ROW aftermarket batteries primarily th! rough aut! omotive parts and battery wholesalers, mass-merchandisers, auto centers, service installers, and oil companies. Battery specialists sell and distribute batteries to a network of automotive parts retailers, service stations, independent retailers, and garages throughout Europe.

The Company competes with Johnson Controls, Inc. and East Penn Manufacturing.

Industrial Energy

The Company�� Industrial Energy segments supply both motive power and network power applications. Motive power batteries are used in the material handling industry for electric forklift trucks, and in other industries, including floor cleaning machinery, powered wheelchairs, railroad locomotives, mining, and the electric road vehicles market. The battery technologies for the motive power markets include flooded flat plate products, tubular plate products, absorbed glass mat (AGM) products, and gel electrolyte products. The Company also offers a complete range of battery chargers and related equipment for the operation and maintenance of battery-powered vehicles. Network power batteries are used to provide back-up power for use with telecommunications systems, computer installations or data centers, hospitals, air traffic control systems, security systems, utilities, railway and military applications. Telecommunications applications include central and local switching systems, satellite stations, wireless base stations and mobile switches, optical fiber repeating boxes, cable television transmission boxes, and radio transmission stations. The Company�� strongest network power battery brands, Absolyte and Sonnenschein, offer customers the choice of AGM or gel electrolyte valve regulated battery technologies and deliver among the highest energy and power densities in their class.

In the Americas, the Company distributes motive power products and services through multiple channels. These include sales and service locations owned by the Company that are augmented by a network of indep! endent ma! nufacturers��representatives. The Company serves a wide range of customers including OEM suppliers of lift trucks, industrial companies, retail distributors, warehousing companies, and manufacturers. Motive power customers in the Americas include Toyota, MCFA, NACCO, Sears, Toyota, Walmart, and Target. The Company distributes network power products and services through sales and service locations owned by the Company augmented by a network of independent manufacturers��representatives. The Company�� primary network power customers in the Americas include AT&T, APC, Emerson Electric, and Verizon Wireless.

The Company distributes motive power products and services in Europe through in-house sales and service organizations and utilizes distributors and agents for the export of products from Europe to ROW countries. Motive power products in Europe are also sold to a wide range of customers in the aftermarket, ranging from industrial companies and retail distributors to small warehousing and manufacturing operations. Motive power batteries are also sold in complete packages, including batteries, chargers, and increasingly through on-site service. The Company�� OEM motive power customers include Toyota Material Handling, the KION Group, and Jungheinrich. The Company distributes network power products and services in Europe and batteries and chargers in Australia and New Zealand through in-house sales and service organizations. In Asia, products are distributed through independent distributors. The Company utilizes distributors, agents, and direct sales to export products from Europe and North America to ROW. The Company�� primary Network Power customers in Europe and ROW include Deutsche Telecom, Alcatel, Emerson Electric, Ericsson and Siemens Nokia Networks.

The Company competes with EnerSys Inc., East Penn Manufacturing, Hoppecke, MIDAC, GS/Yuasa, Shinkobe and C&D Technologies.

Advisors' Opinion:

• [By Rich Duprey]

  A real car wreck on the horizon
  Already crashing and burning was lead-acid battery maker Exide Technologies (NASDAQOTH: XIDEQ  ) , which confirmed it had hired a restructuring specialist to help it cope with is financial situation ahead of some of its debt maturing this fall. It's shares fell almost 48% on the news.

Top 10 Up And Coming Companies To Own In Right Now: SearchCore Inc (SRER)

SearchCore, Inc., formerly General Cannabis, Inc., incorporated in 2003, is a technology service provider. As of December 31, 2011, the Company was engaged in the medicinal cannabis industry. The Company assists the physicians, dispensaries, and end-users within the medicinal cannabis industry in finding each other and in advertising their businesses. All of its operations are conducted through its wholly owned subsidiaries. On January 5, 2012, WeedMaps, LLC (WeedMaps) acquired substantially all the assets of MMJMenu, LLC. On October 31, 2011, General Merchant Solutions, Inc. discontinued all retail credit card processing operations. On January 11, 2011, the Company acquired all the assets of Revyv, LLC. On December 31, 2012, the Company acquired Sports Asylum, Inc. In February 2013, it acquired ModularHomes.com.

WeedMaps Media, Inc. is its wholly owned subsidiary, and its primary operation is the Internet Website, www.weedmaps.com. WeedMaps.com is an online finder site service that allows patients to find local medical cannabis dispensaries, which are also referred to as collectives. Dispensaries are locations where patients who have received letters of recommendation from a healthcare provider can purchase medicinal cannabis, as well as a variety of other non-cannabis related items including, but not limited to, apparel accessories, posters, bumper stickers, concert tickets, books and musical compact disc�� (CD��).

General Marketing Solutions, Inc. is its wholly owned subsidiary, and its primary operation is the Internet Website, www.cannabiscenters.com. General Management Solutions, Inc. is its wholly owned subsidiary that oversees and provides all of the human resources issues for employees, including hiring, terminating and employee benefits. The Company has two additional wholly owned subsidiaries; General Processing Corporation, CannaCenters Corporation (CannaCenters), and two subsidiaries, namely LV Luxuries Incorporated (which operated as makeup.com) and General ! Health Solutions, Inc. (CannaCenters.com).

Advisors' Opinion:

• [By Peter Graham]

  Small cap communications or Internet stocks American Community Development Group Inc (OTCMKTS: ACYD), Globalstar, Inc (OTCMKTS: GSAT) and SearchCore Inc (OTCMKTS: SRER) have been rather quiet lately for investors after making some noise back in September. Nevertheless, all three are still getting some mentions in various investment newsletters or alerts and not because they are the subject of paid promotions. So are these small cap stocks about to make some noise? Here is a closer look:

Top 10 Up And Coming Companies To Own In Right Now: Genesco Inc. (GCO)

Genesco Inc. engages in the retail and wholesale of footwear, apparel, and accessories. The company operates in five segments: Journeys Group, Schuh Group, Lids Sports Group, Johnston & Murphy Group, and Licensed Brands. The Journeys Group segment operates the Journeys, Journeys Kidz, Shi by Journeys, and Underground by Journeys retail stores that provide footwear and accessories for men, women, and younger children. It also sells footwear and accessories through direct-to-consumer catalog and e-commerce operations. The Schuh Group segment operates Schuh retail footwear stores, which offer casual and athletic footwear for 15 to 30 year old men and women, as well as engages in the e-commerce operations. The Lids Sports Group segment operates headwear and accessory stores under the Lids, Hat World, and Hat Shack banners; sports-oriented fan shops that offer licensed merchandise, such as apparel, hats and accessories, sports decor, and novelty products under the Lids Locker R oom, Sports Fan-Attic, and Sports Avenue banners; and as a Lids Team Sports athletic team dealer, as well as in e-commerce operations. The Johnston & Murphy Group segment is involved in Johnston and Murphy retail, catalog and e-commerce, and wholesale distribution operations. Its stores provide footwear, luggage, and accessories for business and professional customers. The Licensed Brands segment markets casual and dress footwear under the Dockers brand for men aged 30 to 55. As of May 31, 2013, the company operated 2,455 retail stores in the United States, Canada, the United Kingdom, and the Republic of Ireland. The company also sells its products through journeys.com, journeyskidz.com, shibyjourneys.com, undergroundbyjourneys.com, schuh.co.uk, and johnstonmurphy.com. Genesco Inc. was founded in 1924 and is headquartered in Nashville, Tennessee.

Advisors' Opinion:

• [By Eric Volkman]

  Genesco (NYSE: GCO  ) results for the company's fiscal Q1 2014 have been released. For the quarter, net sales came in at $591 million, a drop of 1.5% from the $600 million in the same period the previous year. Net profit also saw a slip, to $18.4 million ($0.77 per diluted share) from Q1 2013's figure of $20.6 million ($0.85). On an adjusted basis, those numbers were $22.2 million ($0.94 per diluted share) and $23.8 ($0.98), respectively.

• [By Reuters]

  Steven Senne/AP BOSTON -- Companies that help Target process payments could face millions of dollars in fines and costs resulting from the unprecedented data breach that struck the retailer during the holiday shopping season. Investigators are still sorting through just how thieves compromised about 40 million payment cards and the information of about 70 million Target (TGT) customers. But people who have reviewed past data breaches believe Target's partners could face consumer lawsuits and fines that payment networks such as Visa (V) and MasterCard (MA) often levy after cybersecurity incidents. Target's partners "have deep pockets and are intimately involved in certain aspects of how Target gets paid," said Jamie Pole, a cybersecurity consultant in Asheboro, N.C., who works for government agencies and the financial industry. Fines and settlement costs could reach into the millions of dollars for individual companies, he said, though much will depend on how the ultimate liability for the breach is determined. Boston attorney Cynthia Larose of Mintz Levin said Target would likely seek to add its partners as defendants to lawsuits already filed over the breach. "These class-action lawsuits start to bring everyone in at some point," she said. After its systems were penetrated by hackers in the mid-2000s, retailer TJX Cos. (TJX) agreed to pay up to $40.9 million to cover fraud costs in a settlement with Visa. Visa also issued penalties of $880,000 against Fifth Third Bancorp (FITB) of Ohio, which processed transactions for TJX. Asked about the business relationships and possible costs, Target spokeswoman Molly Snyder declined to comment, citing the ongoing investigation and pending suits. A Visa spokeswoman declined to comment. A MasterCard spokesman said the company couldn't discuss an ongoing investigation. Handling Target Transactions Several companies are involved in any purchase from a store such as Target. A bank issues the consumer's payment card

• [By Seth Jayson]

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

Top 10 Up And Coming Companies To Own In Right Now: Rallye SA (RAL)

Rallye SA is a France-based holding company organized around two sectors of activity: large scale distribution to the food stores and supermarkets and distribution of sports items. The Company is present in France, Latin America, Poland, and Asia through its interests in brands, such as Geant, Monoprix, Leader Price, and United Grocers Cash & Carry, among others. It also has its interst in the Groupe Go Sport. Rallye SA is notably present in France, the United States, Luxembourg, Poland and Colombia, among others. The Company operates through its subsidiaries and affliated companies, such as Cobivia SAS, L��abitation Moderne de Boulogne, Magasins Jean SAS, Matignon Sablons SAS, MFD SA, Parande SAS, Casino Guichaqrd Perrachon DA, Groupe Go Sport, Sivigral SCI and French Develompent Venture SA. Advisors' Opinion:

• [By Holly LaFon]

  A risk involved with the company is that its Republic Bank & Trust business derives 78% of its net income from TRS, which offers bank products that help get customers who electronically file their tax returns their payments. RB&T is only of the few financial institutions in the U.S. that provide the service. Under the program, the taxpayer may receive a Refund Anticipation Loan (RAL), which has been questioned by various governmental and consumer groups. In May 2011, RB&T received an order to cease and desist which could result in an order by the FDIC to terminate its RAL program. It has a hearing on Feb. 12, 2012 in Kentucky regarding the matter.

Top 10 Up And Coming Companies To Own In Right Now: Adcorp Holdings Ltd (ADR)

Adcorp Holdings Limited (Adcorp) is an investment holding company. The Company, through its subsidiaries and associates, is engaged in providing, recruitment, human capital management and training services and business process outsourcing. It is organized into three operating divisions: group central costs, traditional resourcing business and new generation business. The group central costs division includes the items of income and expenditure related to Adcorp Holdings Limited, Group marketing, corporate social investment, shared services and the central head office. The traditional resourcing business includes blue-collar flexible resourcing services (including nursing), white-collar flexible-resourcing services, independent contracting and permanent recruitment services. In October 2013, Adcorp Holdings Ltd acquired Labour Solutions Australia. Advisors' Opinion:

• [By Yiannis Mostrous]

  Keppel has already secured about 20% of its annual sales target, suggesting that 2014 could be another strong year for the company. Trading at 10.2 times earnings and 1.9 times book value, Keppel�� American depositary receipt (ADR) rates a buy up to US$18.00.

• [By Yiannis Mostrous]

  Credit quality remains a concern, but as long as unemployment remains in check, ING Groep should be able to keep its nonperforming loans to manageable levels. Buy ING Groeop's American depositary receipt (ADR) up to US$15.

• [By GuruFocus]

  Symbol Company Price Market Cap($Mil) Yield SNP China Petroleum & Chemical Corp. (ADR) $94.64 $88,459 4.5% YZC Yanzhou Coal Mining Co. (ADR) $14.28 $7,258 5.5% ZNH China Southern Airlines Limited (ADR) $21.34 $4,512 6.2% SFUN SouFun Holdings Limited (ADR) $13.96 $1,083 7.1% GA Giant Interactive Group Inc (ADR) $4.76 $1,167 5.9% CYOU Changyou.com Limited(ADR) $22.49 $1,213 32.6%
  Try the All-in-One Screener to find the companies that may meet your criteria. Define your customized screen and bring it up with just one click next time. This is the link.

Alibaba Target ChinaVision's Shares Fall 6.5% After Asset Deal Denied

Shares in ChinaVision Media, a media and program content production company that Chinese e-commerce giant Alibaba Group tentatively agreed to buy 60% of in March for HK$6.2 billion, or $800 million, fell by 6.5% in Hong Kong on Tuesday in a second day of volatile trading.

Shares soared by 17% on Monday amid apparent speculation that Alibaba may transfer sell some of its assets to the company.

ChinaVision said in a statement at the Hong Kong Stock Exchange on Monday after the close of trade that "whilst there have been preliminary discussions between the Company and Alibaba in relation to the future development of the Group, so far there was no discussion in relation to any assets injection by Alibaba" into ChinaVision Media.

ChinaVision Media's shares have nearly tripled since the company announced on March 11 that Alibaba had agreed to purchase a controlling stake.   The purchase, which is subject to shareholder approval, would potentially expand Alibaba's user base. 

Alibaba last week filed for an IPO in the U.S. that may be the world's largest ever.

– Follow me on Twitter Twitter @rflannerychina

 

 

T-Mobile and Déjà Vu

Top 10 Electric Utility Companies To Watch In Right Now

The fourth largest telecom "Uncarrier" in United States, T-Mobile (TMUS) is looking to recreate some fond memories. Two years ago AT&T had tried to acquire T-Mobile, but failed and ended up paying a fortune as breakup fee.Now, Sprint too could be following its footsteps.

Sweet Breakup

Two years back, AT&T's (T) $39 Billion bid to acquire T-Mobile fizzled out as it did not get regulatory approvals. While it was a setback for AT&T, T-Mobile walked out with $3 Billion in cash, in conjunction with the mutually agreed sum as a Breakup fee.

That helped T-Mobile expand its spectrum, and enabled it to take the fight to AT&T and Verizon, (VZ) shattering to a large extent the high margins that bigger players enjoyed thus far in the telecom space.

This time around, that experience seems to have helped T-Mobile, who is now looking to secure their position no matter what the outcome of the current state of affairs turns out to be.

Deal or No Deal

Whether the merger between T-Mobile and Sprint (S) goes through or falls flat is a billion dollar question. Well it indeed is a billion dollar question because T-Mobile might be demanding exactly a Billion dollar as Break-up fee if the deal does not go through.

While that is indeed a good sign for investors, there is absolutely no need to speculate over what will happen if the merger does take place.

It might be a given, that if a smaller company merges with a larger company, the CEO of the larger company becomes the CEO of the combined entity. But that's not how it's likely to turn out in this case. The Charismatic CEO of T-Mobile John Legere is expected to be at the helm if the merger takes place. Not only that, Sprint Chief Executive Dan Hesse said last week it wouldn't bother him if he doesn't lead the combined company. Additionally, Brand T-Mobile, and most of its management team would also be kept intact post the merger. So, like I said, Deal or no Deal, T-Mobile surely stands to gain.

Worry For Sprint

It's a tricky situation for Sprint as its management now needs to decide whether to push for the merger now, or wait till the 2015 Spectrum Auctions. There are multiple factors at play like opposition by the government and changes to rules governing companies' spectrum holdings. While Sprint is battling fiercely with US regulators who are opposing this deal stating it would inhibit competition, It may have to end up sacrificing some of its spectrum holdings to silence the anti-trust authorities. Again, the management has to bear in mind, that waiting until the auctions, could take away its competitive position against AT&T and Verizon who together enjoy 2/3 rd of the Market share.

Conclusion

Sprint needs to revamp its offering to be more relevant in the first place. Its services are clearly perceived as more expensive than T-Mobile. In spite of that, It has not made profit in the last seven years and has lost over 0.3 million customers this year. T-Mobile during the same period have added 1.3 million customers and have already made some refreshing moves aimed at providing relief to the US customers from expensive contracts by other carriers. Amidst all the disagreement and opposition from others, both Sprint and T-Mobile seem to agree that a merger would suit both. And with Legere at the helm, it will surely be a driving force. However, the timing is the biggest factor now and with T-Mobile having secured both ends, it can continue focussing on how to delight its customers!

About the author:RavagadusBanker-Dreamer-Freelance writer

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Real Time Picks	Buffett-Munger Screener
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2014 Started Off Great for House Flippers, but It Won't End Well

Top Income Stocks To Buy Right Now

Olivier Le Queinec/Shutterstock It's starting to happen again. A buoyant real estate market is starting to birth many of the sights that we saw before the last bubble popped. Late night-infomercials pitching real estate as an investment -- "with little or no money down" -- are hitting the air. Flipping properties is hot again -- and some budding opportunists could get badly burned. What Goes Around ... More and more people are buying houses with the intention of sprucing them up and reselling them at sizable markups a few months later. Why not? Residential real estate prices have been consistently moving higher, especially in the markets that tumbled the most during the financial collapse. Mortgage rates remain reasonable. The economy's improving. What could go wrong? Housing data analytics specialist RealtyTrac reported on Thursday that home flippers made a 30 percent gross return on their short-term purchases through the first three months of this year. That's impressive, and it's going to tempt more casual market observers into the fold. However, the easy money has already been made, and it's going to be a lot more difficult to turn a quick profit on properties in the future. Let's go over five things to watch out for in this now-flawed pursuit for easy cash. 5 Reasons You Might Want to Skip the Flip 1. A 30 percent gross return is not a net return. RealtyTrac's data shows that flippers paid an average of $183,276 on a property investment, selling the house for an average of $238,850 a few months later. That sounds neat, but keep in mind that this doesn't mean pocketing a profit of $55,574. Flippers spend an average of nearly $5,000 to improve the properties they buy to make them more marketable -- about 3.34 percent of the purchase. But the bigger bargains are usually in sorry shape, making them more costly to spruce up. And in depending on where you live, the average price tag gets much higher: As RealtyTrac reports, in Atlanta the median amount spent on improving a flip was $18,250; in San Francisco, it was $13,900. Let's also not forget real estate brokerage commissions that can eat as much as 6 percent of a sale. 2. Carrying costs can be a killer. Anyone who has owned a home can tell you that it's not always a bargain. Utilities may not be as expensive for a vacant home, but taxes and insurance costs accrue between the purchase and the eventual sale. 3. Homebuilders are developing again. One factor helping the housing market's recovery is that real estate developers were forced to the sidelines during the early stages. Folks weren't buying houses, so they had no reason to build more. That has changed lately. Higher prices and rising demand have breathed new life into the construction business. That spike in new supply means flippers aren't just competing against existing properties. Deals may still be there for buyers of distressed properties, but the increased supply will make it harder to sell later. 4. Mortgage rates won't stay low forever. The Federal Reserve kept interest rates low during the long recessionary stretch and its aftermath, but now that the economy's showing genuine signs of life, we're seeing rates inch higher. Mortgage rates have actually been sliding a bit in recent weeks, but they're still almost a full percentage point above where they were during last year's record lows. Higher mortgage rates means fewer people who qualify to borrow the money to buy the homes that flippers are selling. As for investors, higher interest rates give more of an advantage to folks paying all cash for properties to flip. It's not easy to have all that money tied up in a property that may or may not sell a couple of months later. 5. Prices won't keep rising. The combination of the last two points -- more new homes going up and higher mortgage rates -- make it highly unlikely that prices will continue to increase at a rate that makes flipping as profitable as it has been recently. It was fun while it lasted, but it's time for home flippers to find a new way to get rich. More from Rick Aristotle Munarriz
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The Ultimate Alternative Investment

Advisors looking for exotic alternative asset classes to diversify their portfolios have an option right under their noses that may be more accessible and profitable than lumber or vintage wine: small-caps.

Yes, you read that right. While advisors immediately grasp the ease involved in small-cap investing, Eric Nelson of Servo Wealth Management makes the underappreciated case that small-caps function as a separate and countercyclical asset class.

In his latest blog post, the analytically inclined advisor seeks to demonstrate just how different small-cap stocks are from their large-cap brethren.

Investors, he says, tend to view small-caps as mere extensions of the large-cap market — “a riskier subset of a total stock index that will do relatively worse when stocks are declining and relatively better when stocks are appreciating.”

Nelson calls this notion “completely wrong,” a point he emphasizes through a comparison of large-cap and small-cap returns during four market cycles over the past three decades.

From 1982 to 1990, large-caps generated 16.3% annualized returns compared with 8.9% for small-caps — and this wide variance occurred despite the fact that the beta (a measure of sensitivity to market movements) for the Dimensional Fund Advisors US Micro Cap fund (DFSCX) was nearly perfectly correlated with the S&P 500.

Again we see a huge performance gap—this time in the opposite direction—from 1991 to 1994, where DFSCX earned 22.1% compared with just 11.9% per year for the S&P 500. This despite the fact that their betas were nearly the same (and indeed micro-caps’ beta was less than that of large-caps).

In the next period, from 1995 to 1999, small-caps generated annualized returns of 18.5%, but large-cap returns were in another league at 28.6% per year.

“A more volatile subset of the market would have been expected to earn 5% to 10% more than the market, but instead did -10% less,” writes Nelson, whose broader point is that the two market segments simply do not move in lockstep.

That is seen again in the fourth time period, from 2000 to 2013, when U.S. stocks returned a paltry 3.6% per year compared with 10.4% for DFSCX.

(While Nelson uses a microcap index as his benchmark, he tells ThinkAdvisor that “what I say about microcaps holds equally true for small-cap stocks,” noting the performance of DFA’s small-cap and micro-cap funds were just 0.6% apart from 2000 through 2013. Microcaps represent the smallest 5% and small-caps the smallest 10% of the market.) So not only do small and large stocks zig and zag quite differently, but their expected returns vary markedly as well.

Over the entire 1982 through 2013 period, the small stocks returned 12.6% per year—a result identical, Nelson writes, to the segment’s returns between 1926 and 1981. The S&P 500 came close to that over the past three decades (11.5%), but Nelson says that’s an anomaly, since large-caps returned just 9.1% between 1982 and 2013, fully 3.5% less than the long-term results that small stocks generated.

From 1926 to the present, small-caps trump large-caps by about 2% a year (and by 3% to 4% for small-value, Nelson tells ThinkAdvisor).

But advisors looking to capture of some this excess return need not consider either active funds or index funds, the DFA enthusiast says:

“While small cap stocks — and small value in particular — are very beneficial portfolio additions, you have to be careful how you invest: diversification, costs, and careful implementation are paramount.  First, there is no evidence that active managers add any value, so you could wind up taking ‘small-cap’ risk with an active manager…but only getting large-cap returns due to poor selections or unnecessarily high fees — this despite the belief that small caps are a less-efficient asset class,” Nelson says.

“But plain vanilla index funds are no panacea, either,” he continues. “Since 1982, the Russell 2000 Index — the only ‘retail index’ with a track record that old — with no fees deducted…trailed the DFA US Micro Cap fund by 1.8% per year!  And despite the fact that small stocks did beat large ones over this period …the Russell 2000 actually underperformed the S&P 500!”

-- Related story: John Bogle, Index Icon, Accused of Timing Market

How Summer Businesses Survive

Top International Stocks To Invest In 2015

Seasonal businesses are tasked with an unusual feat: make one season's revenues enough to sustain the business for an entire year. Some businesses have the advantage of being able to close in the off-season, while others remain open all year. Some businesses have cycles which coincide with actual seasons while others are heavily dependent on particular seasonal occasions such as tax deadlines, weddings or graduation. Let's examine some popular businesses that thrive during the summer and the challenges they face when the seasons change.

IN PICTURES: 6 Ways To Save Money This Summer

Ice Cream and Summer Treats
During the summer, people are always looking for ways to beat the heat. As a result, ice cream shops see a nice bump in business. Rita's Italian Ice is an ice cream franchise which ranked #121 on Entrepreneur.com's 2013 Franchise 500 Rankings. Ice cream businesses are often risky because winter months tend to be slower; therefore, warm locations or seasonal hours are an integral part of the business model to find the recipe for success.

Generally, most locations in colder climates are only open the months of March through September, but there are also several locations and businesses like Rita's, which are open year-round. However, most of them are located in states where the weather is warm all year. According to the company website, Rita's is the top Italian Ice franchise in the United States.

Theme Parks
Once school lets out, the rush is on for families to take vacations and for parents to find ways to occupy their kids. Most theme parks are open between late spring and early fall to accommodate the rush. Six Flags is the world's largest theme park company, with 21 parks across North America and one destination in Dubai.

Some locations are able to stay open year-round because of their moderate to warm weather locations, but others such as The Great Escape & Splashwater Kingdom in New York are only open in the summer months. (We break down some of the U.S.'s most popular amusement parks to find out which one provides the best value.)

In recent years, Six Flags hit hard times, but the company reemerged from Chapter 11 restructuring in May 2010. As an example of the seasonal nature of the business, in the last 3-month period of October 2009 through January of 2010, revenue amounted to $102 million while in July through September of the same year it was $457 million.

Tour Guides
Aside from the major holidays, summer marks the peak season for travel, and hence tourism. Destination-based tour guides stay in one location and let the tourists come to them. Many offer tours on foot or by way of bus and even boat.

One such boat line, the Maid of the Mist, has been granting tourists an up-close and personal view of Niagara Falls since 1846. For less than $15 per person, passengers can depart from either side (American or Canadian) of Niagara Falls and ride into the water at the base of the falls. Depending upon the weather, the fleet operates from April to October.

As with the aforementioned businesses, tour guide companies must generate enough cash flows during their time of operation to justify their operations. (If flying to an exotic locale isn't in the cards this year, check out these cheaper vacation alternatives.)

Landscaping
Depending on what region the business is located in, the revenues for landscaping firms may dry up with the shrubbery.

Lawn Doctor, the largest "automated lawn care franchise" in the United States, boasts an average annual gross profit margin of 68% for locations that have been open for at least two years. Even though summer is the season most often associated with yard maintenance, the company provides services year round. Their website provides "Lawn Care Tips By Season" and their services include assessments and periodic visits to maintain each customer's yard, thus providing potential for a revenue stream beyond summer's end.

Seasonal Business Challenges
The bills don't stop - while it is true that many costs will decrease when the business is not operating, some large obligations will remain constant. For example, any business with leased space will be responsible for paying the bank every month regardless of the season. Other constant bills which may apply include insurance, utilities and security costs.

For businesses with weather sensitive equipment, arrangements must be made to protect valuables. Finding storage or weatherizing equipment and locations for the off-season can also produce new costs.

Each year the business is responsible for reaching out to old employees and/or recruiting new ones. Hiring takes time, money and other resources since prospective employees have to be interviewed, screened and trained before the business opens.

Unlike business that remain open all year long, seasonal businesses must survive each year on the cash flow generated over the course of a few months. While the business is open, it is important to maximize profits as they will be needed to cover any costs that linger year round.

The Bottom Line
Even though summer sales may cease after a certain date, the responsibilities of a seasonal business owner will continue throughout the year. Maintaining a watchful eye over cash management, equipment and personnel all year long can improve the chances of a seasonal business making it successfully from one season to the next.

Spring stunner: Jobs report blows past forecasts

The labor market roared ahead in April as milder weather helped employers add 288,000 jobs — the most in more than two years.

The unemployment rate fell to 6.3% from 6.7% — the lowest since September 2008, the Labor Department said Friday. The decline, however, came because the labor force--which includes those working and looking for jobs--shrank by 806,000.

Economists surveyed by Action Economics estimated that 210,000 jobs were added last month.

FIRST TAKE: At last, some good news on jobs

AMERICA'S MARKETS: Stock futures unmoved by strong report

Businesses added 273,000 jobs, led by strong gains in professional and business services, retail and restaurants, and construction. Federal, state and local governments added 15,000.

Job gains for February and March were revised up by a total 36,000. February's increase was revised to 222,000 from 197,000 and March's to 203,000 from 192,000.

Some analysts expected breakout employment gains after payroll processor ADP's survey this week showed businesses added 220,000 jobs in April. Other economic indicators also have picked up lately, including factory output, retail sales and consumer confidence.

Some economists also expected a healthy bounce-back effect after the government said this week that the economy grew just 0.1% in the first quarter.

Scott Brown, chief economist of Raymond James, says many small businesses have been hesitant to add employees, in part because of concerns about the new health coverage mandate. But rising demand is increasingly forcing their hand.

"You're at the point where hiring is really going to start to pick up," he says.

Some other labor market indicators in Friday's report were also strong. The number of temporary employees increased by 24,000, possibly heralding further solid gains in permanent workers.

A broader measure of job-market distress — that includes part-time employees who prefer full-time jobs and those who've given up looking for work, a! s well as the unemployed — fell to 12.3% from 12.7%.

And the number of Americans out of work at least six months dropped by 287,000 to 3.5 million. That group still represents 35.5% of all those unemployed.

Other developments were less encouraging. The average work week was unchanged at 34.5 hours after posting a healthy gain in March. Average hourly earnings were also unchanged at $24.31 and are up just 1.9% for the year, in line with sluggish wage growth so far in the five-year-old recovery.

"Typical workers are running as fast as they can to stay in the same spot," Brown says. Many economists say wage growth will accelerate when the jobless rate falls below 6% as demand for workers starts to outstrip the supply.

Last month, professional and business services led the broad-based job gains, adding 75,000. Education and health services added 40,000 jobs; retailers, 34,000; construction, which is benefiting from the housing recovery, 32,000; and leisure and hospitality, 28,000.

Manufacturers added 12,000. Although the federal government cut 3,000 jobs, local governments added 17,000 and states added 1,000.

Many economists expect the economy and job market to accelerate this year because of higher household wealth and reduced debt, a continuing housing recovery and more modest federal government spending cuts.