Retirement Q&A: 'To' or 'through'?

Q: My target-date fund gained about 1% last year, even though the Standard and Poor's 500-stock index rose nearly 30%. What happened?

A: You now understand the difference between "to" and "through."

Target-date funds gear their investments toward your retirement date. As you get closer to retirement, the fund becomes more conservative, decreasing its investments in stocks and increasing its holdings in bonds and money market securities, or cash. After all, when you don't have employment income, you can't make up your losses by adding more money from your income.

The average target-date fund geared toward 2015 gained 9.3% in 2013, according to Lipper, which tracks the funds. The top-performing fund, the American Funds 2015 Target Date Retirement fund, gained 15.3% last year. The worst fund, Pimco RealRetirement 2015, eked out a 0.09% gain.

The difference? Traditionally, retirees moved much of their assets to bonds and money market securities when they stopped working. When you retire, you want your investments to throw off as much income as possible to augment your Social Security and other sources of retirement income. These funds manage your assets to retirement.

Pimco's fund, alas, seems to have simply missed much of the U.S. stock market rally. But John Hancock Retirement Choices at 2015 (ticker: JRFOX), represents the "to" camp. It aims to have about 18% of its portfolio in stocks, with the rest in bonds and money market funds, at its target date. Not surprisingly, the fund gained just 2.2% last year.

But when you retire, you can expect to live another 30 years or so, which argues that a target-date fund should manage your money through retirement. The American Funds 2015 offering that approach has 45% in growth and growth-and-income funds, 20% in equity-income and balanced funds, and 35% in bond funds.

Which is better? If you want an income fund the moment you retire, then put yourself in the "to" camp. But if you want your fund to manage your assets thro! ughout two or three decades of retirement, the "through" camp is the way to go.

Industry CEOs Speak Up on Comcast-Time Warner Deal

NEW YORK (TheStreet) -- A week since the announcement, Comcast's (CMCSA) $45.2 billion bid for Time Warner Cable  (TWC) has already been debated every which way. Yet, until now, the broadcast industry's biggest players have remained quiet. Finally, in a series of post-earnings calls, (DTV), Dish Network  (DISH) and Charter Communications  (CHTR) have spoken up on what would be an unprecedented consolidation of the sector.

Looking at the deal, it should be enough to cause even an industry giant concern. If the deal passes as proposed, a combined Comcast-Time Warner would create a broadcasting powerhouse in a business already replete with low competition and high barriers to entry. In its broadband division alone, Comcast-Time Warner would have dominance in two-thirds of the U.S. marketplace.

And yet, the industry's response is far from panicked.

In a call Thursday, Mike White, CEO of the largest satellite provider DirecTV, urged federal regulators to ensure the deal is "appropriately scrutinized." "It certainly creates some significant changes in the competitive landscape that we need to think about," said White. Charlie Ergen, CEO of fellow satellite-TV operator Dish Networks (DISH), took a more aggressive note on a call Friday, arguing the merger would consolidate broadband, video and content segments to create a "nationwide player." "That's going to send a seismic shift across our industry in ways that maybe we can't predict today," he said. A silver lining, Ergen noted it would clear the way for a potential Dish-DirecTV merger in the future, an idea previously suggested but not attempted since U.S. regulators rejected a similar proposal in 2002. He noted the deal "certainly doesn't hurt the case for consolidation within the satellite industry." Meanwhile, one-time suitor of Time Warner Cable, Charter Communications, shied from taking a position on the merger. Charter had vied for Time Warner earlier this year only to have its $37.3 billion offer rejected. Charter CEO Tim Rutledge parried questions by noting the company would continue to pursue alternative deals to gain greater market share. "Notwithstanding everything that has happened, we are still interested in wisely acquiring subscribers through M&A when that opportunity arises," said Rutledge in a call with analysts. Comcast's offer to purchase Time Warner has yet to pass antitrust scrutiny from federal regulators. --Written by Keris Alison Lahiff. 

Stock quotes in this article: CMCSA, TWC, DISH, DTV, CHTR 

Favorite Pharmas for Value Investors

Among our favorite investing ideas for the year, we recommend two leading pharmaceutical stocks that are trading at attractive levels for long-term value investors, notes John Buckingham, editor of The Prudent Speculator.

Johnson & Johnson (JNJ), a global healthcare company, develops, manufactures, and markets a diversified portfolio of pharmaceutical, medical device, diagnostic, and consumer health products.

We like that JNJ maintains a diverse revenue stream and a robust research pipeline. Additionally, JNJ, seemingly, faces relatively few major patent losses over the next few years, and the majority of its pharmaceutical offerings are specialty drugs, which frequently carry stronger pricing power.

Top Quality Stocks To Invest In 2015

Furthermore, we see long-term attractive potential for the company's orthopedics business, as positive market demographics continue to build, as well as opportunistic expansion in emerging market regions.

Management recently announced earnings projections for 2014 in the range of $5.75 to $5.85 per share.

JNJ shares are currently offered at less than 15 times consensus forward earnings estimates, while the yield for the higher-quality, lower-volatility name is 3.0%.

Eli Lilly & Co. (LLY) is a global pharmaceutical company focused on discovering, developing, and marketing drugs for neuroscience, endocrinology, oncology, cardiovascular, anti-infective, and other indications.

The firm is further diversified with an animal health business segment. Lilly recently reported Q4 earnings ($0.74 per share) and revenue ($5.8 billion) that beat analyst expectations.

While LLY will have to continue to endure some patent losses within its human drug business, including the drug Evista in March of this year, we see those situations being potentially mitigated by the firm's attractive potential in its product pipeline, as well as its strong growth prospects within the animal health business.

The stock price having gone nowhere over the last year, we think that Lilly shares offer an attractive valuation along with a generous 3.6% dividend yield.

Subscribe to The Prudent Speculator here…

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The Liquidmetal Technologies Pendulum is Swinging the Other Way Now (LQMT)

While it may be melodramatic to say my following of Liquidmetal Technologies Inc. (OTCBB:LQMT) has been something of a 'saga', it wouldn't be unfair to say it's one of those small cap stocks that's had its fair share of twists and turns. Yours truly turned explicitly bullish on LQMT back on November 22nd, after the stock broke above a key falling resistance lines. Then, on January 14th, I made a point of saying the rally had run its course, and it was time to lock in your 47% gain on Liquidmetal Technologies and walk away... at least for a while.

So why look at it again now? Well, in simplest terms, that 'while' is up. It's time to wade back in, as this is once again one of the market's better-looking small cap stocks.

In retrospect, the decision to shed LQMT in mid-January was premature. The stock closed at 23 cents that day, but ended up hitting a high of 40 cents a week and a half later. Ouch. On the other hand, it would have taken unlikely precision to get out of Liquidmetal Technologies at that maximum profit, because it didn't last more than a few minutes. In fact, the bulls ended up turning tail and running the next day, kick-starting a move all the way back to a low of 18 cents in the middle of last week.... which is why it's worth revisiting now.

In the same sense that the January 27th peak was a one-day wonder, the February 12th plunge may have exhausted all the potential selling, setting up a trade-worthy bullish swing. And sure enough, the bullish floodgates were opened two trading days later, confirming the tide had turned. Specifically, on Friday of last week, LQMT popped in a big way, and did so on the highest volume we've seen in months. That's a huge and not-often seen clue within the world of small cap stocks.

It's also constructive that Liquidmetal made the reversal effort right at the key 100-day moving average line (gray), and very near the 20 cent-mark, which was a key ceiling back in November; ceilings have a way of becoming floors later on, and vice versa.

 

Bottom line? The bulls ARE interested again. Of this there can be no doubt. Given the chart's history, now that the bulls are interested again - perhaps more so than they've been in years - this new rally should get lots of traction.

Yes, Liquidmetal Technologies shares have peeled back from their high today, but that could have been expected after the bullish opening gap. In fact, it may be a good thing, in that the quick pullback burned off any overbought pressure before it had time to build up... one of the key headaches small cap stocks are known for.

For more trading ideas and insights like these, be sure to sign up for the free SmallCap Network newsletter. You'll get stock picks, market calls, and more, every day. Here's what you've missed recently.

Profiting from Health Care Tourism

In most countries of the world, health care costs have been rising rapidly and are no longer just the developed world’s problem. According to the Organization for Economic Cooperation and Development (OECD), while health care spending as a percentage of gross domestic product (GDP) will rise from about 7.1 percent to 13.2 percent over the next few decades, spending will rise even faster in developing countries.

For instance, in China health care spending is forecast to rise from only 1.9 percent of GDP currently to more than 8 percent by 2060, while in Brazil it is forecast to shoot up from just over 3 percent to nearly 11 percent over the same period.

Health care costs are skyrocketing not only because growing incomes are increasing access, but aging populations and rapid technological advances are also helping to drive health care cost inflation.

Rapidly increasing costs are driving many patients to seek medical care outside of their home countries, creating a global medical tourism business valued somewhere between $24 billion and $40 billion, as patients from affluent countries travel to less developed ones in search of lower cost health care.

Patients Beyond Borders, an organization that provides information about medical tourism, estimates that patients from most developed countries can save between 25 percent and 40 percent by seeking care in Brazil, 40 percent and 65 percent in Mexico and as much as 70 percent by traveling to Thailand.

Government and private sector investment have created robust health care infrastructures in those countries, nearly indistinguishable from what most patients would find at home. But thanks to higher incomes and stronger currencies, patients can receive a number of procedures, most commonly cosmetic and dental surgeries but also cardiovascular, reproductive and ontological services, for just a fraction of what they would pay at home.

Thai! land-based Bumrungrad International Hospital (OTC: BUGDF) operates a private hospital in Bangkok with 538 beds that caters primarily to medical tourists travelling to the country. Capable of treating about 4,500 outpatients per day, the hospital provides treatment for digestive diseases and cancers, in-vitro fertilization services and a host of other services.

Over the past three years the hospital’s revenue has grown by an average 11.3 percent while earnings per share (EPS) have averaged 28.7 percent growth over the same period.

The hospital has been investing heavily in expanding its facilities, adding 5 floors to its outpatient clinic building this past May and adding 18 intensive care beds and 58 ward beds to its inpatient hospital facility. It also acquired a new building in Bangkok to house its back office activities and provide employee housing as it aggressively recruits doctors in new subspecialties. In all, the company made capital investments of about THB2.1 billion last year and plans to spend an average THB1.5 billion over the next five years.

On an average day Bumrungrad logs about 3,000 patient visits and admits about 90 patients with an average daily census of about 375 patients.

Over the past two years, the company’s revenue per visit has grown by an average 10.2 percent and, in its fiscal third quarter of 2013 it was up by 14.1 percent year-over-year. Revenue per admission has been posting growth in the mid-single digits over the past two years and shot up by 10.6 percent in the third quarter, largely thanks to price increases and improved operational efficiency.

In the third quarter, revenue from Thai patients was up by 12.6 percent while international revenue grew by 11.2 percent year-over-year. Thai patients contributed about 60 percent of revenue and international patients accounted for 40 percent. Patients from the United Arab Emirates accounted for 8 percent of international patients, followed by those from Myanmar (7 percent), Oman ! and the U! S at 5 percent each.

While insurance payments accounted for 12 percent of revenue, nearly three-quarters of patients are self-payers, so the hospital faces limited reimbursement pressure. The remainder of revenues were generated through corporate contracts with inpatients and outpatients each accounting for about half of revenues.

On an adjusted basis, net profit was up from THB515 million in the third quarter of last year to THB703 million in the most recent quarter. EPS was up from THB0.59 to THB0.81 year-over-year in the third quarter and up from THB1.85 to THB2.18 on a year-to-date basis, with net profit margin up from 16.2 percent to 17.3 percent over the same period.

As the global population continues to age rapidly and becomes more affluent even as out-of-pocket health care costs are rising, the worldwide medical tourism market is forecast to grow by an average 20 percent per year over at least the next decade, with the highest growth rates in Southeast and South Asia largely due to growing Asian incomes.

Geographically, Bumrungrad International Hospital is well positioned to capture much of that growth. With strong growth prospects ahead, Bumrungrad International Hospital rates a buy up to USD4.50.

 

House Republicans to Advance 'Clean' Debt Limit Hike

Pete Marovich/Bloomberg via Getty ImagesHouse Speaker John Boehner of Ohio. WASHINGTON -- In a concession to President Barack Obama and Democratic lawmakers, House Speaker John Boehner said Tuesday the House will vote to increase the government's borrowing cap without trying to attach conditions sought by some Republicans. "We'll let his party give him the debt ceiling increase that he wants," Boehner said, hours before the expected evening vote. Boehner announced the plan after a poll of Republican members found insufficient support for a strategy that would have made passage of the debt limit increase conditional on a plan to reverse a recently passed cut to military pensions. Obama and congressional Democrats argued the GOP should not try to use a vote on the debt limit to extract concessions from the administration. "We'll let the Democrats put the votes up," the speaker said. "We'll put a minimum number of [GOP] votes up to get it passed." He said he expected almost all of Obama's Democratic allies to vote for the so-called clean debt cap increase but he would be one of the few Republicans to back it as well. Boehner's announcement came after a plan hatched on Monday to reverse the cut in military pensions as the price for increasing the government's borrowing cap got a rocky reception from skeptical conservatives. "Right now we've got a debt ceiling bill that increases spending, which is diametrically 180 degrees opposite of what we were battling over just two years ago -- where the question was how much in spending cuts we were going to get," said Rep. Mo Brooks, R-Ala. Now, rather than trying to win over unhappy Republicans for the debt ceiling vote, Boehner will rely on Democrats to pass a "clean" increase in the borrowing cap through March of next year. GOP leaders had earlier attempted to build support for plans to tie a debt cap increase to approval of the Keystone XL pipeline or repeal of part of the new health care law; both those efforts fell flat as well. He said his inability to assemble 218 GOP votes -- enough to win a floor vote -- for any debt limit plan left him no alternative but to turn to Democrats. "When you don't have 218 votes, you have nothing. We've seen that before and we see it again," Boehner said, adding that House Minority Leader Nancy Pelosi, D-Calif., promised him sweeping Democratic support in Wednesday's vote. The White House applauded the move. Gene Sperling, director of the White House's National Economic Council, said the administration hopes Tuesday's development means "that the tactic of threatening default or threatening the full faith and credit of the United States for budget debates is over, off the table and never is going to happen again. And if so that would, I think, be a boost for confidence and investment in the U.S." The announcement amounted to a bitter defeat for a party that has sought to use must-pass debt ceiling measures as leverage to force spending cuts on Democrats. Republicans won more than $2 trillion in spending cuts in a 2011 showdown, but gave Obama two debt limit increases last year with only modest add-ons. The House now plans a separate vote on the military pensions. The cuts, just passed in December, would reduce by one percentage point the cost-of-living pension increases for military retirees under the age of 62. They were backed by House Budget Committee Chairman Paul Ryan, R-Wis. Repealing them would cost $7 billion over the coming decade, the Congressional Budget Office said Monday. The reduction has sparked an uproar among advocates for veterans, and lawmakers in both parties want to repeal it. In fact, the Senate voted 94-0 on Monday to advance a repeal of the military cost-of-living cuts, though Democrats and Republicans still disagree over whether to replace the pension curbs with cuts elsewhere in the government's $3.5 trillion budget. Time is running out for lawmakers to act to lift the debt limit. Treasury Secretary Jacob Lew told lawmakers last week that Treasury will exhaust by Feb. 27 its ability to employ accounting maneuvers to borrow to pay its bills. Lew told congressional leaders Monday that he had begun tapping two large government worker retirement funds to clear room under the debt limit. The action involving the Civil Service Retirement and Disability Fund will provide $50 billion to $75 billion in additional borrowing room, while tapping the Government Securities Investment Fund will provide about $175 billion in borrowing room, Lew estimated. Lew announced he would suspend payments to these two pension funds and would also draw down investments made in the funds. Previous Treasury secretaries have also employed this bookkeeping maneuver. Once Congress approves a new debt ceiling, the Treasury makes the funds whole by replacing the withdrawn funds and lost interest earnings.

4 Stocks Spiking on Big Volume

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

>>5 Stocks Ready to Explode Higher

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

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

>>5 Stocks Hedge Funds Love

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

Marin Software

Marin Software (MRIN) operates a cloud-based digital advertising management platform. This stock closed up 14.1% to $11.25 in Wednesday's trading session.

Wednesday's Volume: 1.23 million

Three-Month Average Volume: 167,810

Volume % Change: 693%

From a technical perspective, MRIN skyrocketed higher here right above its 50-day moving average of $9.91 and above some near-term overhead resistance levels at $10.44 to $11.13 with heavy upside volume. This move also briefly pushed shares of MRIN back above its 200-day moving average of $11.33, before the stock closed just below that level at $11.25. Market players should now look for a continuation move higher in the short-term if MRIN manages to take out Wednesday's high of $11.49 with strong volume.

Traders should now look for long-biased trades in MRIN as long as it's trending above $10.40 or above Wednesday's low of $10.13 and then once it sustains a move or close above $11.49 with volume that hits near or above 167,810 shares. If we get that move soon, then MRIN will set up to re-test or possibly take out its next major overhead resistance levels $12.84 to $13.50.

Constellium

Constellium (CSTM) engages in the design, manufacture, and sale of specialty rolled and extruded aluminum products. This stock closed up 3.5% at $26.14 in Wednesday's trading session.

Wednesday's Volume: 1.99 million

Three-Month Average Volume: 587,402

Volume % Change: 342%

From a technical perspective, CSTM jumped higher here right above some near-term support at $25 to $24.30 with strong upside volume. This stock has been uptrending strong over the last three months and change, with shares moving higher from its low of $16.60 to its recent high of $26.79. During that uptrend, shares of CSTM have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of CSTM within range of triggering a near-term breakout trade. That trade will hit if CSTM manages to take out Wednesday's high of $26.23 to its all-time high at $26.79 with high volume.

Traders should now look for long-biased trades in CSTM as long as it's trending above near-term support at $24.30 or above its 50-day at $23.37 and then once it sustains a move or close above those breakout levels with volume that this near or above 587,402 shares. If that breakout hits soon, then CSTM will set up to enter new all-time-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $35 to $37.

Swift Transportation

Swift Transportation (SWFT) operates as a multi-faceted transportation services company and truckload carrier in North America. This stock closed up 3.2% at $23.41 in Wednesday's trading session.

Wednesday's Volume: 5.21 million

Three-Month Average Volume: 1.88 million

Volume % Change: 148%

From a technical perspective, SWFT ripped higher here right off its 50-day moving average of $21.85 with heavy upside volume. This move is quickly pushing shares of SWFT within range of triggering a big breakout trade. That trade will hit if SWFT manages to take out Wednesday's high of $23.48 to its 52-week high at $23.74 with high volume.

Traders should now look for long-biased trades in SWFT as long as it's trending above its 50-day at $21.85 or above $21.50 and then once it sustains a move or close above those breakout levels with volume that hits near or above 1.88 million shares. If that breakout hits soon, then SWFT will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $30 to $33.

Top 5 Canadian Stocks To Invest In 2015

China Mobile Games and Entertainment Group

China Mobile Games and Entertainment (CMGE), through its subsidiaries, engages in the development, operation, and sale of feature phone and smartphone games primarily in the People's Republic of China. This stock closed up 19.2% at $39.33 in Wednesday's trading session.

Wednesday's Volume: 814,000

Three-Month Average Volume: 150,416

Volume % Change: 450%

From a technical perspective, CMGE exploded higher here right above some near-term support at $31.37 with monster upside volume. This move pushed shares of CMGE into breakout and new all-time-high territory, since the stock cleared some near-term overhead resistance at $36.49. Market players should now look for a continuation move higher in the short-term if CMGE manages to take out Wednesday's high of $40.31 with high volume.

Traders should now look for long-biased trades in CMGE as long as it's trending above $36 or $35 and then once it sustains a move or close above $40.31 with volume that's near or above 150,416 shares. If we get that move soon, then CMGE will set up to enter new all-time-high territory, which is bullish technical price action. Some possible upside targets off that move are $45 to $50.

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

-- Written by Roberto Pedone in Delafield, Wis.

RELATED LINKS:

>>3 Big Stocks on Traders' Radars

>>5 Oversold Stocks Ready to Rebound

>>3 Stocks Under $10 Making Big Moves

Follow Stockpickr on Twitter and become a fan on Facebook.

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

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

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

The 4 Stocks That Dominated the Market on Monday

February 10, 2014: Markets opened slightly lower on Monday, and trading was mixed most of the day with Nasdaq posting a small gain and the other two major indexes posting a small loss. New Fed Chair Janet Yellen is scheduled to present the Fed's required monetary policy report to the Congress tomorrow and traders may be waiting to hear what she has to say. The DJIA closed up 0.05%, the S&P 500 closed up 0.16%, and the Nasdaq Composite closed up 0.54%.

Today's big loser among the Dow 30 stocks was UnitedHealth Group Inc. (NYSE: UNH). Shares closed down 2.27% at $69.74 in a 52-week range of $52.51 to $77.33. The federal government is set to announce next week preliminary reimbursement rates for 2015 Medicare Advantage participants, of which UnitedHealth is the largest. The rates are expected to be lowered. UnitedHealth's volume today was about 25% higher than the daily average of around 4.5 million shares.

Another Dow stock that weighed on the index today was McDonald's Corp. (NYSE: MCD) which posted a loss of 1.2% to close at $94.85. The fast food giant posted lower U.S. same-store sales in January. The company posted a same-store sales gain on better sales in Europe and the rest of the world. Trading volume was roughly 10% above the daily average of around 5.5 million shares traded.

General Motors Co. (NYSE: GM) fell 3.38% for the day to close at $34.89, in a 52-week week range of $26.19 to $41.85. Reports of discounts up to $7,000 on some pickup trucks during the coming President's Day weekend sales have worried analysts and investors. Share volume was more than about a 50% higher than the daily average of around 25.7 million shares traded.

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Apple Inc. (NASDAQ: AAPL) got some support from Institutional Investor Services today in its dispute with activist investor Carl Icahn regarding an additional $50 billion share buyback. Icahn later said he was withdrawing his proposal. Apple shares closed up 1.78% at $528.92 in a 52-week range of $385.10 to $575.14. Apple's volume was about 15% below the daily average of around 12.4 million shares.

Of the Dow 30 stocks 16 closed higher today while 14 closed lower.

10 Best Paper Stocks To Buy For 2015

Dividend stocks are everywhere, but many just downright stink. In some cases, the business model is in serious jeopardy, or the dividend itself isn't sustainable. In others, the dividend is so low, it's not even worth the paper your dividend check is printed on. A�solid dividend�strikes the right balance of growth, value, and sustainability.

Today, and one day each week for the rest of the year, we're going to look at one dividend-paying company that you can put in your portfolio for the long term without too much concern. This isn't to say that these stocks don't share the same macro risks that other companies have, but they are a step above your common grade of dividend stock. Check out�last week's selection.

This week, I'll highlight the nation's second largest integrated oil and gas company, Chevron (NYSE: CVX  ) .

Every Chevron shareholders' biggest nightmare
The biggest concern for Chevron and its largest rival, ExxonMobil (NYSE: XOM  ) , is declining energy prices. Weakening global economies could send oil and natural gas prices significantly lower, which would dramatically affect both companies' bottom lines. Lower prices became a reality for both Chevron and ExxonMobil in their most recent quarters. Chevron's average realized price for a barrel of oil and natural gas liquids fell to $94 from $102 in the year prior. For ExxonMobil, lower oil price realizations coupled with higher natural gas price realization lowered year-over-year earnings by $230 million.�

10 Best Paper Stocks To Buy For 2015: Castle (A.M.)

A. M. Castle & Co., together with its subsidiaries, distributes specialty metals and plastics worldwide. The company operates in two segments, Metals and Plastics. The Metals segment distributes engineered specialty grades and alloys of metals, as well as provides specialized processing services. It offers alloy, aluminum, nickel, stainless steel, carbon, and titanium in various forms, such as plate, sheet, extrusions, round bar, hexagon bar, square and flat bar, tubing, and coil. This segment also performs various specialized fabrications for its customers through pre-qualified subcontractors that thermally process, turn, polish, and straighten alloy and carbon bars. The Plastics segment distributes various plastics in forms that include plate, rod, tube, clear sheet, tape, gaskets, and fittings. The company serves Fortune 500 companies, as well as medium and smaller sized firms in the retail, automotive, marine, office furniture and fixtures, safety products, life scienc es applications, general manufacturing, producer durable equipment, oil and gas, aerospace and defense, heavy industrial equipment, industrial goods, and construction equipment industries. It has operations in the United States, Canada, Mexico, France, the United Kingdom, China, and Singapore. The company was founded in 1890 and is headquartered in Oak Brook, Illinois.

10 Best Paper Stocks To Buy For 2015: Vidrala SA (VID.MC)

Vidrala SA is a Spain-based company principally, which is engaged in the glass industry. The Company�� activities include the production, distribution and sale of glass bottles and containers used in the food and beverages industries. The Company conducts its own research and development (R&D) operations. It operates six production plants and 12 melting furnaces located in such countries, as Portugal, France, Belgium and Italy. As of December 31, 2011, the Company owned such subsidiaries as Crisnova Vidrio SA, Inverbeira Sociedad de Promocion de Empresas SA, Gallo Vidro SA, Castellar Vidrio SA, Corsico Vetro SRL, MD Verre SA, Omega Immobiliere et Financiere SA, Investverre SA and CD Verre SA.

Hot Performing Companies To Watch In Right Now: Berry Plastics Group Inc (BERY)

Berry Plastics Group, Inc. (Berry), incorporated on November 18, 2005, is a provider of plastic consumer packaging and engineered materials. Berry owns 100% interest of Berry Plastics Corporation. Berry sells its solutions predominantly into end markets, such as food and beverage, healthcare and personal care. The Company operates in three segments: Rigid Packaging, Engineered Materials and Flexible Packaging. As of September 19, 2012, the Company supplied its customers through 82 manufacturing facilities throughout the United States (68 locations) and select international locations (14 locations). In June 2012, the Company acquired 100% interest of Frans Nooren Beheer B.V. and its operating companies (Stopaq). In September 2011, the Company acquired 100% interests of Rexam Closures Kentucky Inc., Rexam Delta Inc., Rexam Closures LLC, Rexam Closure Systems LLC, Rexam de Mexico S. de R.L. de C.V., Rexam Singapore PTE Ltd., Rexam Participacoes Ltda. and Rexam Plasticos do Brasil Ltda. (collectively, Rexam SBC). In August 2011, Berry acquired 100% interest of LINPAC Packaging Filmco, Inc.

Rigid Packaging

The Company�� Rigid Packaging business consists of containers, foodservice items, house wares, closures, over caps, bottles, prescription vials, and tubes. The end uses for these products are consumer-oriented end markets, such as food and beverage, retail mass marketers, healthcare, personal care and household chemical. The Company manufactures a collection of container products. The Company produces 32 ounce or thermoformed polypropylene (PP) drink cups and offers a product line with sizes ranging from 12 to 52 ounces. The Company�� products of house wares market is focused on producing semi-disposable plastic home and party and plastic garden products. The Company produces closures and over caps across several of its product lines, including continuous-thread and child-resistant closures, as well as aerosol over caps. The Company also provides a range of custom closure ! solutions including fitments and plugs for medical applications, cups and spouts for liquid laundry detergent, and dropper bulb assemblies for medical and personal care applications.

The Company competes with Airlite, Letica, Polytainers, Silgan, Aptar Group and Reynolds.

Engineered Materials

Berry�� Engineered Materials business primarily consists of pipeline corrosion protection solutions, specialty tapes and adhesives, polyethylene-based film products, and can liners served to a variety of end markets including oil, water and gas infrastructure, industrial and consumer-oriented end markets. The Company produces anti-corrosion products to infrastructure, rehabilitation and pipeline projects throughout the world. Products include heat-shrinkable coatings, single- and multi-layer sleeves, pipeline coating tapes, anode systems for cathodic protection and epoxy coatings. These products are used in oil, gas and water supply and construction applications.

Berry is the manufacturer of cloth and foil tape products. Other tape products include range of splicing and laminating tapes, flame-retardant tapes, vinyl-coated and carton sealing tapes, electrical, double-faced cloth, masking, mounting, original equipment manufacturer (OEM) medical and specialty tapes. These products are sold under the National, Nashua and Polyken brands in the United States. The Company manufactures and sells a portfolio of PE-based film products to end users in the retail markets. These products are sold under brands, such as Ruffies and Film-Gard. Its products include drop cloths and retail trash bags. The Company manufactures customized PP-based, woven and sewn containers for the transportation and storage of raw materials, such as seeds, titanium dioxide, clay and resin pellets.

The Company offers range of polyvinyl chloride (PVC) meat film and agricultural film. Berry�� products are used primarily to wrap fresh meats, poultry and produce for supermarket applic! ations. I! n addition, the Company offers a line of boxed products for food service and retail sales. Berry sells trash-can liners and food bags for offices, restaurants, schools, hospitals, hotels, municipalities and manufacturing facilities. The Company also sells products under the Big City, Hospi-Tuff, Plas-Tuff, Rhino-X and Steel-Flex brands. The Company produces both hand and machine-wrap stretch films, which are used by end users to wrap products and packages for storage and shipping. It sells stretch film products to distributors and retail and industrial end users under the MaxTech and PalleTech brands.

The Company competes with AEP, Sigma and 3M.

Flexible Packaging

The Company�� Flexible Packaging business consists of barrier, multilayer film products, as well as finished flexible packages, such as printed bags and pouches. Berry manufactures and sells a range of film products ranging from mono layer to coextruded films having up to nine layers, lamination films sold primarily to flexible packaging converters and used for peelable lid stock, stand-up pouches, pillow pouches and other flexible packaging formats. The Company also manufactures barrier films used for cereal, cookie, cracker and dry mix packages that are sold directly to food manufacturers like Kraft and Pepsico. It also manufactures films for industrial applications ranging from lamination film for carpet padding to films used in solar panel construction.

The Company supplies component and packaging films used for personal care applications. Berry is a converter of printed bags, pouches and roll stock. Its manufacturing base includes integrated extrusion that combines with printing, laminating, bagmaking, Innolok and laser-score converting processes. The Company is a supplier of printed film products for the fresh bakery, tortilla and frozen vegetable markets with brands, such as SteamQuick Film, Freshview bags and Billboard. The Company manufactures specialty coated and laminated produ! cts for a! range of packaging applications. Its products are sold under the MarvelGuard and MarvelSeal brands and are sold to converters who transform them into finished goods.

The Company competes with Printpak, Tredegar and Bemis.

Advisors' Opinion:

• [By John Udovich]

  One of the most famous scenes in the cult classic, the Graduate, was when Mr. McGuire�took Dustin Hoffman�� character aside and said�"Ben, I want to say one word to you, just one word: Plastics"; but what about the Berry Plastics Group Inc (NYSE: BERY) and its performance verses that of the�iShares S&P 500 Index ETF (NYSEARCA: IVV), iShares Russell Midcap Index Fund ETF (NYSEARCA: IWR) and iShares S&P SmallCap 600 Index ETF (NYSEARCA: IJR)? I should mention that plastics and the Berry Plastics Group was not the place to be yesterday as the stock took a tumble on reduced guidance.

10 Best Paper Stocks To Buy For 2015: Weatherford International Ltd(WFT)

Weatherford International Ltd. provides equipment and services used in the drilling, evaluation, completion, production, and intervention of oil and natural gas wells worldwide. It offers artificial lift systems, which include reciprocating rod lift systems, progressing cavity pumps, gas lift systems, hydraulic lift systems, plunger lift systems, hybrid lift systems, wellhead systems, and multiphase metering systems. The company also provides drilling services, including directional drilling, ?Secure Drilling? services, well testing, drilling-with-casing and drilling-with-liner systems, and surface logging systems; and well construction services, such as tubular running services, cementing products, liner systems, swellable products, solid tubular expandable technologies, and inflatable products and accessories. In addition, it designs and manufactures drilling jars, underreamers, rotating control devices, and other pressure-control equipment used in drilling oil and nat ural gas wells; and offers a selection of in-house or third-party manufactured equipment for the drilling, completion, and work over of oil and natural gas wells for operators and drilling contractors, as well as a line of completion tools and sand screens. Further, the company provides wireline and evaluation services; and re-entry, fishing, and thru-tubing services, as well as well abandonment and wellbore cleaning services; stimulation and chemicals, including fracturing and coiled tubing technologies, cement services, chemical systems, and drilling fluids; integrated drilling services; and pipeline and specialty services. It serves independent oil and natural gas producing companies. The company was founded in 1972 and is headquartered in Geneva, Switzerland.

Advisors' Opinion:

• [By Taylor Muckerman]

  Improperly hunting for tax havens
  While in the midst of reconciling tax-accounting issues, Weatherford International� (NYSE: WFT  ) came under SEC investigation for potentially selling goods to sanctioned Iran and Syria back in March 2012. The stock has yet to recover and has traded down 20.6% since March 16, 2012, while the S&P 500 is up 15% and rival Halliburton is up 23.9% over the same time frame.

• [By Ben Levisohn]

  Weatherford International (WFT) has dropped 6.3% to $14.75 before the open of trading after it announced the departure of its CFO in an 8-K filing. Wells Fargo and Raymond James both cut Weatherford’s shares as a result of the change.

• [By Rich Bieglmeier]

  And that belongs to William Macaulay who is a director at Weatherford International, Ltd. (WFT). The director bought 78,000 shares of WFT on September 27, 2013 for a total of $1.19 million. Mr. Macaulay's recent purchase is particularly peculiar.

10 Best Paper Stocks To Buy For 2015: Weyerhaeuser Company(WY)

Weyerhaeuser Company, a forest products company, grows and harvests trees, builds homes, and manufactures forest products worldwide. It grows and harvests trees for use as lumber, other wood and building products, and pulp and paper. The company manages 6.4 million acres of private commercial forestland; and has long-term licenses on 13.9 million acres of forestland. It also offers timber; minerals, such as rock, sand, and gravel, as well as oil and gas to construction and energy markets; logs; timberland tracts; and seed and seedlings, poles, plywood, and hardwood lumber products. In addition, the company provides structural lumber products for structural framing; engineered lumber products for floor and roof joists, and headers and beams; structural panels for structural sheathing, subflooring, and stair treading for wood products dealers, do-it-yourself retailers, builders, and industrial users. Further, it offers building products comprising cedar, decking, siding, ins ulation, rebar, and engineered lumber connectors. Additionally, the company offers fluff pulp for use in sanitary disposable products; papergrade pulp for printing and writing papers, and tissues; specialty chemical cellulose pulp for use in textiles, absorbent products, specialty packaging, and high-bulking fibers; liquid packaging board converted into containers; and slush and wet lap pulp for manufacturing paper products. It also constructs single-family houses, as well as develops residential lots and land for construction and sale; and master-planned communities with mixed-use property. The company sells its cellulose fibers products through direct sales network, and liquid packaging products directly to carton and food product packaging converters; and wood products through sales organizations and distribution facilities. Weyerhaeuser Company has been elected to be taxed as a real estate investment trust. The company was founded in 1900 and is headquartered in Federal Way, Washington.

Advisors' Opinion:

• [By Charley Blaine]

  Results from truck-maker Paccar (NASDAQ: PCAR), toymaker Mattel (NASDAQ: MAT) and lumber-and-paper maker Weyerhaeuser (NYSE: WY) on Friday may offer a glimpse of what's ahead.

10 Best Paper Stocks To Buy For 2015: Vidrala SA (VID)

Vidrala SA is a Spain-based company principally, which is engaged in the glass industry. The Company�� activities include the production, distribution and sale of glass bottles and containers used in the food and beverages industries. The Company conducts its own research and development (R&D) operations. It operates six production plants and 12 melting furnaces located in such countries, as Portugal, France, Belgium and Italy. As of December 31, 2011, the Company owned such subsidiaries as Crisnova Vidrio SA, Inverbeira Sociedad de Promocion de Empresas SA, Gallo Vidro SA, Castellar Vidrio SA, Corsico Vetro SRL, MD Verre SA, Omega Immobiliere et Financiere SA, Investverre SA and CD Verre SA.

10 Best Paper Stocks To Buy For 2015: Boise Inc (BZ)

Boise Inc., incorporated on February 1, 2007, is a manufacturer of packaging and paper products, including corrugated containers and sheets, containerboard, protective packaging products, imaging papers for the office and home, printing and converting papers, label and release papers, newsprint and market pulp. The Company operates in the United States, Europe, Mexico, and Canada. The Company operates in three segments: Packaging, Paper, and Corporate and Other. The Company�� newsprint is sold primarily to newspaper publishers in the southern and southwestern the United States. During the year ended December 31, 2012, approximately 38% of the Company�� uncoated freesheet paper was sold to OfficeMax Incorporated, its customer.

Packaging

In the Packaging segment, the Company manufactures and sells linerboard, containerboard, corrugated containers and sheets, protective packaging products, and newsprint. Linerboard is a paperboard, which when combined with corrugating medium is used in the manufacture of corrugated sheets and containers. Corrugated sheets are containerboard sheets that are sold primarily to converters that produce a variety of corrugated products. Corrugated containers are corrugated sheets that have been fed through converting machines to create containers, which are used in the packaging of fresh fruit and vegetables, processed food, beverages, and other industrial and consumer products. Stock boxes are corrugated containers manufactured to pre-set dimensions.

Protective packaging products include multi-material customized packaging solutions, which may utilize kraft paper-based honeycomb corrugated packaging, foamed plastics, and air pocket packing materials Newsprint is a paper commonly used for printing newspapers, other publications, and advertising material. During the year ended December 31, 2012, its Packaging segment produced approximately 613,000 short tons of linerboard, and its Paper segment produced approximately 135,000 short tons! of corrugating medium. It manufactures linerboard and newsprint on two machines at its mill in DeRidder, Louisiana. It also manufactures corrugated containers and sheets and protective packaging products at 26 plants located in North America and Europe.

Paper

In its Paper segment, the Company manufactures and sells three general categories of products: communication-based papers; packaging-based papers, and market pulp. Its communication-based papers include cut-size office papers, and printing and converting papers. Its Packaging-Demand-Driven Papers include Label and release papers, Flexible packaging papers, and Corrugating medium. Printing and converting papers are used by commercial printers or converters to manufacture envelopes, forms, and other commercial paper products.

Its packaging-based papers include label and release papers and corrugating medium. The Label and release papers include label facestocks, as well as release liners. The coated and uncoated papers sold to customers create packaging products for food and nonfood applications. Market pulp is sold to customers in the open market for use in the manufacture of paper products. The Company manufactures its Paper segment products at three mills, all located in the United States.

Corporate and Other

The Company�� Corporate and Other segment includes transportation assets, such as rail cars and trucks, which it uses to transport its products from its manufacturing sites. The Company provides transportation services not only to its own facilities but also, on a limited basis, to third parties. Rail cars and trucks are typically leased.

The Company competes with International Paper Company, Rock-Tenn Company, Georgia-Pacific LLC, Packaging Corporation of America, Longview Fibre Paper, Packaging, Inc, Green Bay Packaging Inc., KapStone Paper, TexCorr, L.P., Resolute Forest Product, SP Newsprint Co. and Domtar Corporation.

Advisors' Opinion:

• [By Ben Levisohn]

  Packaging Corp. of America�(PKG) has jumped 6.3% to $57.99 after it said it would buy Boise (BZ) for $1.28 billion. Boise has gained 26% to $12.55.

• [By Christopher Freeburn]

  Under the deal, which is expected to close during the fourth quarter, Packaging Corp. will pay $12.55 a share, or $1.27 billion, for Boise (BZ). That represents a 26% premium over the target’s last closing price, the Associated Press noted.

• [By Paul Ausick]

  Stocks on the move: Boise Inc. (NYSE: BZ) is up 26% at $12.55 following the company�� acquisition by Packaging Corporation of America Inc. (NYSE: PKG) for $12.55 a share ($1.28 billion). Omeros Corp. (NASDAQ: OMER) is up 68.2% at $8.56 following an analyst upgrade. Northern Dynasty Minerals Ltd. (NYSEArca: NAK) is down 33.3% at $1.48 following an announcement from Anglo American plc that it was withdrawing from a massive copper mining project in Alaska.

10 Best Paper Stocks To Buy For 2015: Berry Plastics Group Inc (BERY.N)

Berry Plastics Group, Inc. (Berry), incorporated on November 18, 2005, is a provider of plastic consumer packaging and engineered materials. Berry owns 100% interest of Berry Plastics Corporation. Berry sells its solutions predominantly into end markets, such as food and beverage, healthcare and personal care. The Company operates in three segments: Rigid Packaging, Engineered Materials and Flexible Packaging. As of September 19, 2012, the Company supplied its customers through 82 manufacturing facilities throughout the United States (68 locations) and select international locations (14 locations). In June 2012, the Company acquired 100% interest of Frans Nooren Beheer B.V. and its operating companies (Stopaq). In September 2011, the Company acquired 100% interests of Rexam Closures Kentucky Inc., Rexam Delta Inc., Rexam Closures LLC, Rexam Closure Systems LLC, Rexam de Mexico S. de R.L. de C.V., Rexam Singapore PTE Ltd., Rexam Participacoes Ltda. and Rexam Plasticos do Brasil Ltda. (collectively, Rexam SBC). In August 2011, Berry acquired 100% interest of LINPAC Packaging Filmco, Inc.

Rigid Packaging

The Company�� Rigid Packaging business consists of containers, foodservice items, house wares, closures, over caps, bottles, prescription vials, and tubes. The end uses for these products are consumer-oriented end markets, such as food and beverage, retail mass marketers, healthcare, personal care and household chemical. The Company manufactures a collection of container products. The Company produces 32 ounce or thermoformed polypropylene (PP) drink cups and offers a product line with sizes ranging from 12 to 52 ounces. The Company�� products of house wares market is focused on producing semi-disposable plastic home and party and plastic garden products. The Company produces closures and over caps across several of its product lines, including continuous-thread and child-resistant closures, as well as aerosol over caps. The Company also provides a range of custom closu! ! re solutions including fitments and plugs for medical applications, cups and spouts for liquid laundry detergent, and dropper bulb assemblies for medical and personal care applications.

The Company competes with Airlite, Letica, Polytainers, Silgan, Aptar Group and Reynolds.

Engineered Materials

Berry�� Engineered Materials business primarily consists of pipeline corrosion protection solutions, specialty tapes and adhesives, polyethylene-based film products, and can liners served to a variety of end markets including oil, water and gas infrastructure, industrial and consumer-oriented end markets. The Company produces anti-corrosion products to infrastructure, rehabilitation and pipeline projects throughout the world. Products include heat-shrinkable coatings, single- and multi-layer sleeves, pipeline coating tapes, anode systems for cathodic protection and epoxy coatings. These products are used in oil, gas and water supply and const ruction applications.

Berry is the manufacturer of cloth and foil tape products. Other tape products include range of splicing and laminating tapes, flame-retardant tapes, vinyl-coated and carton sealing tapes, electrical, double-faced cloth, masking, mounting, original equipment manufacturer (OEM) medical and specialty tapes. These products are sold under the National, Nashua and Polyken brands in the United States. The Company manufactures and sells a portfolio of PE-based film products to end users in the retail markets. These products are sold under brands, such as Ruffies and Film-Gard. Its products include drop cloths and retail trash bags. The Company manufactures customized PP-based, woven and sewn containers for the transportation and storage of raw materials, such as seeds, titanium dioxide, clay and resin pellets.

The Company offers range of polyvinyl chloride (PVC) meat film and agricultural film. Berry�� products are used primarily to wrap fresh meats, poultry and produce for supermarket ! app! lica! tions! . In addition, the Company offers a line of boxed products for food service and retail sales. Berry sells trash-can liners and food bags for offices, restaurants, schools, hospitals, hotels, municipalities and manufacturing facilities. The Company also sells products under the Big City, Hospi-Tuff, Plas-Tuff, Rhino-X and Steel-Flex brands. The Company produces both hand and machine-wrap stretch films, which are used by end users to wrap products and packages for storage and shipping. It sells stretch film products to distributors and retail and industrial end users under the MaxTech and PalleTech brands.

The Company competes with AEP, Sigma and 3M.

Flexible Packaging

The Company�� Flexible Packaging business consists of barrier, multilayer film products, as well as finished flexible packages, such as printed bags and pouches. Berry manufactures and sells a range of film products ranging from mono layer to coextruded films having up to nine layers, lamination films sold primarily to flexible packaging converters and used for peelable lid stock, stand-up pouches, pillow pouches and other flexible packaging formats. The Company also manufactures barrier films used for cereal, cookie, cracker and dry mix packages that are sold directly to food manufacturers like Kraft and Pepsico. It also manufactures films for industrial applications ranging from lamination film for carpet padding to films used in solar panel construction.

The Company supplies component and packaging films used for personal care applications. Berry is a converter of printed bags, pouches and roll stock. Its manufacturing base includes integrated extrusion that combines with printing, laminating, bagmaking, Innolok and laser-score converting processes. The Company is a supplier of printed film products for the fresh bakery, tortilla and frozen vegetable markets with brands, such as SteamQuick Film, Freshview bags and Billboard . The Company manufactures specialty coated and lami! nated pr!! oducts fo! r a range of packaging applications. Its products are sold under the MarvelGuard and MarvelSeal brands and are sold to converters who transform them into finished goods.

The Company competes with Printpak, Tredegar and Bemis.

10 Best Paper Stocks To Buy For 2015: Meadwestvaco Corporation (MWV)

MeadWestvaco Corporation (MWV) provides packaging solutions to the healthcare, personal care and beauty, food, beverage, home and garden, tobacco, and commercial print industries worldwide. The company?s Packaging Resources segment produces bleached paperboard, Coated Natural Kraft paperboard, and linerboard. Its Consumer Solutions segment designs and produces multi-pack cartons and packaging systems primarily for the beverage take-home and tobacco market. In addition, it offers a range of converting and consumer packaging solutions, including printed plastic packaging and injection-molded products used for personal care, beauty, and pharmaceutical products; and dispensing and sprayer systems for personal care, beauty, healthcare, fragrance, and home and garden markets. In addition, this segment has a pharmaceutical packaging contract with a mass-merchant, and manufactures equipment that is leased or sold to its beverage and dairy customers to package their products. The c ompany?s Consumer & Office Products segment manufactures, sources, markets, and distributes school and office products, time-management products, and envelopes in North America and Brazil through both retail and commercial channels. Its Specialty Chemicals segment manufactures, markets, and distributes specialty chemicals derived from sawdust and other byproducts of the papermaking process in North America, South America, and Asia. Its products include activated carbon used in emission control systems for automobiles and trucks, as well as for water and food purification applications, and performance chemicals used in printing inks, asphalt paving, adhesives, and lubricants for the agricultural, paper, and petroleum industries. MWV?s Community Development and Land Management segment involves in real estate development, forestry operations, and leasing activities. MeadWestvaco Corporation was founded in 1888 and is based in Glen Allen, Virginia.

Advisors' Opinion:

• [By Lauren Pollock]

  MeadWestvaco Corp.(MWV) expanded its cost-cutting efforts and said it plans to simplify the structure of its packaging businesses, as it strives to improve its performance.

• [By Ray Merola]

  International Paper Co Share Price versus Competitors RockTenn (RKT), MeadWestvaco Corp (MWV), Packaging Corporation of America (PKG), and S&P 500 (March 2009-to-date)

• [By Eric Volkman]

  MeadWestvaco (NYSE: MWV  ) is continuing to deliver payouts for its shareholders. The company has declared a fresh quarterly dividend of $0.25 per share, to be handed out on September 3 to shareholders of record as of August 31.�That amount matches each of the company's regular quarterly payouts stretching back to late 2010. Prior to that, it paid $0.23 per share.

• [By Ben Levisohn]

  When you’re stock has been lagging the S&P 500, sometimes drastic action must be followed by even more drastic action. Case in point: MeadWestvaco (MWV), which announced a program of cost cutting on the heels of one announced last year.

10 Best Paper Stocks To Buy For 2015: Fibria Celulose SA (FBR)

Fibria Celulose S.A. (Fibria), formerly Votorantim Celulose e Papel S.A., incorporated on July 25, 1941, is a producer of market pulp. During the year ended December 31, 2010, Fibria produced 5,054 kilotons of eucalyptus pulp (including 50.0% of the pulp production of Veracel). The Company also produces coated and uncoated paper, carbonless paper and thermal paper at its Piracicaba paper mill, located in the State of Sao Paulo with an annual production capacity of 190 kilotons. During 2010, it produced 115 kilotons of paper products and recorded consolidated net revenues. Fibria produces bleached eucalyptus kraft pulp at three pulp mills, the Aracruz pulp mill located in the State of Espirito Santo, which has an annual production capacity of 2.3 million tons; the Tres Lagoas pulp mill located in the State of Mato Grosso do Sul, which has an annual production capacity of 1.3 million tons, and the Jacarei pulp mill located in the State of Sao Paulo, which has an annual production capacity of 1.1 million tons. The Company has a 50% interest in Veracel, which owns and operates a pulp mill in the municipality of Eunapolis, State of Bahia, with an annual production capacity of 1.1 million tons.

Pulp

Fibria produces bleached eucalyptus kraft pulp from planted eucalyptus trees. Bleached eucalyptus kraft pulp is a range of hardwood pulp. Eucalyptus is a hardwood tree, and its pulp has short fibers and is generally suited to manufacturing tissue, coated and uncoated printing and writing paper and coated packaging boards. Short fibers are optimal for manufacturing wood-free paper with good printability, smoothness, brightness and uniformity. Market pulp is the pulp sold to producers of paper products. Kraft pulp is pulp produced in a chemical process using sulphate. During 2010, it produced 5,054 kilotons of pulp (including 50.0% of the pulp production of Veracel).

Paper

During 2010, Fibria produced 115 kilotons of paper. The Company produced coated printing an! d writing paper, which is a coated woodfree paper used for promotional materials, folders, internal sheets and cover of magazines, books, tabloids, inserts and mailing; uncoated printing and writing paper, which is a uncoated woodfree paper in reels and sheets; carbonless paper, which is used to produce multi-copy forms, POS, invoices and other applications in place of traditional carbon paper, and thermal paper, which is traditionally used in fax machines; POS, bar code labels, toll tickets, water and gas bills and receipts for automated teller machines (ATMs) and credit card machines. It manufactures thermal paper products with technology licensed byOji Paper Co., Ltd (Oji Paper).

The Company competes with APRIL, Arauco, APP, Georgia Pacific, CMPC, Sodra, Stora Enso, Weyerhaeuser and Suzano.

Advisors' Opinion:

• [By Seth Jayson]

  Fibria Celulose (NYSE: FBR  ) reported earnings on July 24. Here are the numbers you need to know.

  The 10-second takeaway
  For the quarter ended June 30 (Q2), Fibria Celulose met expectations on revenues and missed expectations on earnings per share.

Bernanke and predecessors salute Fed’s 100th

At a historic gathering Monday, the three men who have led the Federal Reserve the past 34 years heralded the central bank's forceful responses to the economy's wild swings during the period — from double-digit inflation to near-Depression.

Commemorating the Fed's centennial, former chairmen Paul Volcker, Alan Greenspan and soon-to-be former Chairman Ben Bernanke highlighted a remarkable melding of the Fed's past and present in an ornate central bank board room filled with current Fed governors and bank presidents.

The law establishing the Federal Reserve was signed by President Woodrow Wilson on Dec. 23, 1913.

ECONOMISTS: No Fed taper this week, but soon

Volcker, chairman during the double-digit inflation and recessions of the early 1980s, kicked off the ceremony by citing the starkly different economies each of the three faced.

"In my time, interest rates were at 20% and we were preoccupied with inflation," said the stooping 6-foot-7-inch Volcker, 86. "Chairman Bernanke is ready to leave office with interest rates at zero" and concerns about deflation swirling following the 2008-09 Great Recession.

Greenspan "got it just right with the grand moderation," Volcker said, referring to Greenspan's successful efforts to control inflation during the robust economic growth and sustained bull market of the 1990s.

Yet Greenspan, 87, reflected on his most tumultuous episode — the stock market's 23% drop on Oct. 19, 1987, known as Black Monday.

"The days that followed the crash were truly frightening, certainly for me, and I suspect for much of the Fed board, presidents and staff," he said.

As the Chicago options market nearly collapsed and other markets fell sharply, the Fed pumped money into the financial system to lower short-term interest rates, and regional banks announced they were prepared to backstop certain loans.

"The crisis of 1987 was, in my judgment, the (Fed) operating at its best," Greenspan said.

Top 5 Chemical Stocks To Invest In 2015

The 2008 financial crisis and recession presented Bernanke with the Fed's greatest challenge in decades. As lending froze, Bernanke, 60, spearheaded a series of extraordinary steps to rescue the financial system, providing non-traditional loans to banks and purchasing bonds to push down long-term interest rates, among other steps.

The measures, he said, were "unprecedented, in both scale and scope." Noting the Fed was founded to stabilize the financial system following the Panic of 1907 before it expanded its purview to the setting of interest rates, Bernanke said the Fed "has returned to its roots."

Icahn Eyes eBay

One of our favorite stocks has caught the attention of activist investor Carl Icahn, explains Geoffrey Seiler, editor of BullMarket.com.

eBay (EBAY) disclosed that Carl Icahn had accumulated a 0.82% stake in eBay and proposed a non-binding shareholder proposal to split-off PayPal as a separate unit.

The board rejected the split-off proposal, saying it has examined that idea in detail in the past, and believes keeping PayPal together with eBay's Marketplace unit is in the best interests of shareholders.

It believes PayPal is better able to leverage the company's technology capabilities, commerce platforms, and relationships with retailers, brands, and large merchants worldwide, as part of eBay.

As to its results, the company earned $850 million, or 65 cents per share, up 13% from $751 million, or 57 cents per share, a year earlier. Adjusted earnings rose 15% to $1.07 billion, or 81 cents a share.

The result was in line with the analyst consensus. Revenue jumped 13% to $4.53 billion, just below the $4.54 billion consensus.

eBay generated $1.43 billion in free cash flow during the quarter. It ended the quarter with cash, equivalents, and investments of $12.8 billion, and $4.12 billion in debt. Net cash was approximately $6.62 per share. During the quarter, the company repurchased $254 million of its stock. The company's board also authorized another $5 billion for share repurchases.

Looking first at the operating results, eBay delivered an OK quarter, given challenges, such as the shortened holiday season for the Marketplace unit. PayPal once again delivered solid growth.

In both cases, we think the growth in active users, up 14% year over year at Marketplace and 16% for PayPal, points to continued momentum for the businesses.

Icahn is not the first investor to suggest PayPal should be spun-off. One of the arguments is that PayPal would likely command a higher multiple on its own; it would also open PayPal up to be a takeover target.

Top 5 Penny Stocks For 2015

Our view of Icahn's investment is that it is, mostly, a positive for shareholders, but a distraction for management. Icahn doesn't always get everything he wants, but he's been pretty successful at bidding up the price of companies he has a stake in.

His investment in eBay, at the least, should help raise the floor price a bit and it certainly will lead to a vigorous debate over the merit of his proposal. Meanwhile, eBay remains one of our favorite stocks for the long-term and we continue to rate it a Buy. Our target is $64.

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Verizon Communications Inc. (VZ): How Verizon Addresses Competition From T-Mobile US Inc

Verizon Communications, Inc. (NYSE:VZ) is facing severe wireless competition, especially from T-Mobile US Inc (NYSE:TMUS). But, the wireless carrier's strategy of keeping its cool and focusing on network quality has shielded it from competitors.

The US wireless market has always been competitive, and what Verizon is seeing now isn't new. While they acknowledge that T-Mobile has gained traction, management reminded investors that this is not the first time that Verizon has faced a new and emerging competitive threat.

[Related -T-Mobile US Inc (NYSE:TMUS): AT&T Inc.(NYSE:T) Could Suffer In Wireless War]

For example, in the 1990s the PCS (1900 MHz) spectrum auctions created a large number of new entrants (including T-Mobile and Sprint) that were viewed as material threats to incumbent 'cellular' operators such as Verizon.

Later, the industry saw the emergence of prepaid carriers like MetroPCS and Leap Wireless. This isn't even the first time that Verizon has seen competitors offer to buy-out customers' early termination fees (ETFs).

Deutsche Bank analyst Brett Feldman said Verizon retained a leadership position by being rational and measured in how it reacted, and management does not view the current environment as warranting a different approach. So far, management believes its 'keep calm and carry on' strategy is working.

[Related -Apple Inc. (NASDAQ:AAPL): China Mobile On Board, But Challenges Remain]

Despite three strong quarters of post-paid subscriber growth at T-Mobile, Verizon has put up good results itself including a modest improvement in post-paid churn in the fourth quarter. Verizon also added 1.6 million subscribers in the quarter.

Meanwhile, the key reason that most customers choose and stay with Verizon is network quality. While Verizon had some bad press in the fourth quarter related to network issues in a few large markets, such as New York, the company believes that these isolated hot spots have been fixed and that the carrier retains a meaningful network advantage.

To drive this point home with consumers it has resumed an ad strategy that focuses on its network coverage and speeds. A key example is its recent LTE map ads which compare Verizon's LTE coverage with its competitors.

Feldman noted that the goal is to cut through the various claims about who has the best coverage by simply showing consumers a map highlighting that Verizon has nearly 3 times the LTE coverage of its closest competitor AT&T.

To date, T-Mobile's Un-carrier offers have only appealed to a small portion of Verizon's post-paid base (mostly young, price sensitive individuals). So, the best way for Verizon to address isolated pressures is with targeted promos.

A key example is the recent launch of a $60/month plan that includes unlimited voice and messaging plus 250 MB of data. Management views this plan as both a lure that can attract new customers (who are likely to buy-up to larger data buckets down the road) and a retention tool for existing customers with limited data needs that may consider switching.

Feldman said another weapon is Edge, which is Verizon's version of a handset installation plan. Initial traction here has been strong with 20% of eligible gross adds selecting an Edge plan in the fourth quarter. However, the financial impact to date remains modest with Edge driving only 1 percent of Verizon's wireless EBITDA last quarter.

The analyst adds that it is too early to know whether T-Mobile's ETF buy-out offer will have a material impact on Verizon. Management's initial view is that the offer is not as attractive as it initially looks, with most customers receiving far less value than the headline claim of $650 per line.

Verizon believes that the T-Mobile offer has some logistical hurdles such as the need for families to replace all of their devices, and long delays in receiving a check for the value of the ETF. But, the company is watching to see what happens and will make adjustments if necessary.

Verizon is investing in converged services in order to remain differentiated over the longer term. The carrier is not quite at the point where converged services are at the core of its wireless product offering. But, it is increasingly in a position to leverage investments it has made in its other segments to add differentiated twists to its current plans.

Content will be a key part of Verizon's converged services strategy. Verizon says that it has agreed to purchase intellectual property rights and other assets that enable Intel's OnCue Cloud TV platform. These assets primarily provide the user interface for IP video services that Verizon can offer across both its wireless and wireline networks.

Feldman said several of Verizon's recent acquisitions and investments support a strategy of building-out new content capabilities and services. A potential example is integrating some the security capabilities housed in its enterprise segment into its wireless services.

Verizon would launch differentiated services like this in the near-term. So, Verizon can sustain solid growth in 2014 even as the competitive landscape shifts.

What Matters in the Week Ahead for Global Markets

By Michael J. Casey, Alen Mattich and Michael Arnold

Here are the most important macroeconomic data and policy news events expected in the forthcoming week:

MONDAY

CHINA: Markets, government offices closed for the Lunar New Year celebrations.

BRAZIL: 7 a.m. EST. (10 a.m., Sao Paulo) Markit Economics January manufacturing PMI. [Prev. 50.5.]

This not a closely watched indicator, but like anywhere else in the world the Markit PMI for Brazil has the potential to evolve into a useful measure of business activity. And with so much focus on the market turmoil suffered by the "Fragile Five" emerging markets, of which Brazil is an unwitting member, any fresh insight into the state of this giant South American nation's economy is welcome. The last result showed a very meager rate of expansion (above 50). Did it improve in January? (MC)

U.S.: 9 a.m. EST. Treasury Sec Lew speaks on the debt ceiling at Bipartisan Policy Center, a U.S. think tank.

If this was October 2013, a month of government shutdown and extreme partisanship, this would be a hotly awaited event. But although the reprieve that Congress gave the U.S. government over its debt limit is due to expire on Friday, this time the tension isn't there. Why? Because it seems clear the political costs of going to the mat with the government aren't worth it. Why else would the House have passed a budget deal earlier this year? The consensus is the debt ceiling will rapidly, if quietly increased. But, of course, anything can happen? (MC)

U.S.: 9 a.m. EST. Janet Yellen sworn in as new Federal Reserve Chair.

The end of an era for outgoing Chairman Ben Bernanke, who had one of the most challenging tenures for any Fed chief ever. But it’s also an historic new era, with the first female leader of the Fed to take the helm. Will policy change? Who knows? Most Fed officials say Ms. Yellen is very much cut from the same cloth as Mr. Bernanke. What's clear that she has an enormous job to do: most likely, Ms. Yellen will be responsible for eventually unwinding the massive accommodative monetary position that the Bernanke Fed built up. (MC)

U.S.: 9 a.m. EST. Markit Economics final January U.S. Manufacturing PMI. [Preliminary index was at 56.6 vs. 55.7 in

The preliminary result for this up and coming indicator suggested that the first month of the year enjoyed a further acceleration in business activity. The final number – as well as the Institute of Supply Management's competing number, out an hour later – will affirm whether this is an entrenched trend or not. (MC)

U.S.: 10 a.m. Institute for Supply Management January ISM manufacturing report on business. [Manufacturing PMI expected 56 vs. revised 56.5 in December.]

Economists keep expecting the ISM's measure of manufacturing activity to moderate, but it continues to maintain solid growth. (MC)

U.S.: 10 a.m. December construction spending [Expected+0.2% vs. +1% in November.]

The idea is that the holiday season, mixed with an especially cold snap of ugly weather forced construction activity to slow in December from the rapid pace it saw in November. (MC)

BRAZIL: 12 p.m. EST (3 p.m. in Sao Paulo). January trade balance. [Previous deficit $2.65 billion.]

It's important that Brazil's trade balance starts to turn more favorable. That would signal that the weakness in the Brazilian real has reached a point that it is restoring Brazilian competitiveness and helping it transition into recovery. (MC)

U.S.: 4 p.m. EST. January industry auto sales. [Expected annualized sales 15.7 million vs. 15.4 million in December.]

Car sales ended 2013 on a very strong note, and that's good news for the broader U.S. economy. Did the consumer enthusiasm for new cars continue into the New Year. (MC)

SOUTH KOREA: 6 p.m. EST (8 a.m. Tuesday, Seoul). January consumer price index. [Previous CPI +1.1% on-year; core CPI previously +1.9% on-year].

South Korea’s benign inflation has allowed the Bank of Korea to stay on hold for an extended period while the economic recovery gains some traction. CPI for all of 2013 rose just 1.3%, far below the Bank of Korea’s target range of 2.5%-3.5%. Nothing suggests the BOK will exhibit any greater urgency to raise rates in coming months with price pressures essentially absent. (MA)

AUSTRALIA: 10:30 p.m. EST (2:30 p.m. Tuesday, Sydney). Reserve Bank of Australia cash rate decision [Previously held at 2.5%]

With the non-mining parts of Australia’s economy showing little life, speculation had been growing that the Reserve Bank of Australia would have to cut interest rates again from their current low of 2.5% — something the bank was reluctant to do with the housing market showing signs of an emerging bubble. However, recent strong data suggest that the RBA’s previous eight cuts since November 2011 are beginning to revive the broader economy, meaning the bank is likely to stay on hold now. (MA)

PHILIPPINES: 8 p.m. EST (9 a.m. Tuesday, Manila). January CPI [Previous +4.1% on-year] and core CPI [Previous +3.2% on-year]

The Philippines is one country in emerging Asia where inflation is beginning to become an issue after the consumer price index rose to a two-year high in December. Still, it remains squarely within the central bank's target range and December's rise was largely due to disruptions caused by Typhoon Haiyan, which means the central bank will incline toward patience unless the January print is off the charts. Fourth-quarter GDP data, out last week, suggested that growth has come off a bit from the torrid pace earlier in the year but remains among the fastest in Asia, and will likely be boosted by reconstruction efforts this year. January's CPI print is worth watching closely, but likely won't be enough to force the Bangko Sentral ng Pilipinas into a rate increase. (MA)

TUESDAY

EURO ZONE: 5 a.m. EST (11 a.m. Brussels). December producer price index. [Forecast up 0.2% on the month and down 0.9% on the year vs. -0.1% and -1.2%, respectively, in November]

Input inflation is still worryingly low, but at least the December numbers should show that the downward pressure it’s exerting on consumer prices is startling to relent. Overall, though, the euro zone continues to face deflationary risks. (AM)

U.K.: 4:30 a.m. EST (9:30 a.m. London). January construction purchasing managers’ index [Expected 61.8 vs. 62.1 in December]

Construction is likely to be growing at great guns as the U.K.’s property boom gathers pace. (AM)

U.S.: 8:30 a.m. Federal Reserve Bank of Richmond President Jeffrey Lacker speech at Shenandoah University

Mr. Lacker is considered a hawk. Not a voter on the Fed's Open Market Committee this year. (MC)

U.S.: 9:45 a.m. ISM-New York January ISM-NY Report on Business. [Previously 63.8.]

A very strong result for this third-tier indicator last month. It would not be a surprise if there is a correction lower this time. (MC)

U.S.: 12:30 p.m. Federal Reserve Bank of Chicago President Charles Evans speech at the Detroit Economic Club

Mr. Evans is not a voting member, but as a kind of de facto mouthpiece for the dominant dovish wing of the Fed, his views provide a useful gauge for the Fed's thinking. Are the FOMC members really as sanguine about the emerging market crisis as is suggested in the last statement, with its glaring omission of any reference to the problems in Turkey, Russia, and other developing countries. (MC)

INDONESIA: 11 p.m. EST (11 a.m. Wednesday, Jakarta). Fourth-quarter GDP [Previous +5.6% on-year]

Growth had been slowing in Indonesia from the torrid pace of the past few years even before the central bank raised interest rates by a cumulative 175 basis points following last summer’s taper-related selloff in the rupiah, when it sought to compress imports and choke off inflation. That tightening will likely show up in the form of a further slowdown in the fourth quarter numbers. (MA)

WEDNESDAY

EUROPE: 3:45 a.m. EST -5 a.m EST (9:45 a.m.-11 am, Brussels). Manufacturing purchasing manager indexes for January.

–ITALY [Forecast 48.5 vs. 47.9 in December]
–FRANCE [Forecast 48.5 unchanged on preliminary estimate vs. 47.8 in December]
–GERMANY [Forecast 53.6 unchanged on preliminary estimate vs. 53.5 in December]
–EURO ZONE [Forecast 51.9 unchanged on preliminary estimate vs. 51.0 in December]
–U.K. [Forecast 59.0 vs. 58.8 in December]

The final services PMIs are unlikely to surprise, merely confirming that domestic demand is growing but remains subdued in the single-currency region. The U.K., on the other hand, remains a bastion of consumption. (AM)

EURO ZONE: 5 a.m. EST (11 a.m. Brussels). December retail sales [Expected down 0.5% on the month vs. up 1.4% in November]

A surprisingly weak retail sales number from Germany last week suggests downside risks for the overall euro zone data release. This will be something for the European Central Bank to chew over at its meeting on Thursday. (AM)

POLAND: N/A Polish central bank meeting [Expected benchmark interest rate to be unchanged at 2.5%]

The Polish central bank is expected to stick with its all-time low interest rate of 2.5% even though the zloty has come under market pressure alongside a general emerging markets rout. But with the economy remaining strong and the zloty’s declines likely to put upward pressure on inflation, hikes are likely to be on the cards in coming months. (AM)

U.S.: 8:15 a.m. Automatic Data Processing January national employment report. [Private payrolls forecast +193,000 vs. +238,000 in December.]

Last month's ADP number threw economists for a loop. It was so strong that it led some to predict a strong result in the official estimate of U.S. payrolls from the Bureau of Labor Statistics. In the end, it seemed like a head fake. Did the ADP numbers or those of the BLS better capture the underlying state of the labor market? Another month of data will help gauge that. (MC)

U.S.: 10 a.m. Institute for Supply Management January non-manufacturing report on business. [Composite index expected 53.5 vs. 53.]

The services sector appears to be in decent shape, although the ISM figures don't capture quite the same breadth of expansion as its manufacturing index. (MC)

U.S.: 12:30 p.m. EST. Federal Reserve Bank of Philadelphia President Charles Plosser speech at annual economic seminar in Rochester, NY.

Mr. Plosser is back on the voting roster. He is a noted inflation hawk. He will almost surely talk of the need to push through the tapering process in a speedy fashion. (MC)

U.S.: 12:40 p.m. EST. Atlanta Fed President Dennis Lockhart speaks in Birmingham, Ala.

Mr. Lockhart is not a voting member. But he is a respected moderate. His analysis is always of the economic situation and of the Fed's monetary policy options is usually insightful. (MC)

AUSTRALIA: 7:30 p.m. EST (11:30 a.m. Thursday, Sydney). December retail sales [Previous +0.7% on-month]

Policy makers have been desperately hoping for signs of life in non-mining sectors of the economy, and strong November retail sales gave hope that the economy is finally exiting its doldrums. Another month of strong sales would help solidify the idea that the recovery is broadening and that the Reserve Bank of Australia can avoid cutting interest rates any further from the current lows. (MA)

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THURSDAY

PHILIPPINES: 3 a.m. EST (4 p.m., Manila). Bangko Sentral ng Pilipinas rates decision [Previously held at 3.5%]

The Philippine economy has been the strongest in Asia behind China’s, yet inflation has remained well within the central bank’s comfort zone — even with the recent spike post-Typhoon Haiyan. That means the central bank will likely keep rates on hold for another month while reconstruction efforts get underway in earnest. (MA)

GERMANY: 6 a.m. EST (12 p.m. Berlin). December industrial orders [Expected up 0.3% on the month vs. up 2.1% in November]

German industry is likely to have taken a breather after a blowout November, but the overall trend remains positive coming into the new year. (AM)

U.K.: 7 a.m. EST (12 p.m. London). Bank of England policy meeting [Expected unchanged base rate at 0.5%, unchanged stock of bond purchases at £375 billion]

That the BOE won’t touch rates or its stock of bond purchases is a foregone conclusion. The message from its policy makers has been loud and clear that rates don’t need to rise as long as there remains a large output gap and inflation is under control. But investors will be looking for clues about a shift in guidance on when policy might start to shift given that the unemployment rate is nearly at the BOE’s 7% threshold at which it starts to consider tightening. (AM)

CZECH REPUBLIC: 6 a.m. EST (12 p.m. Prague). Czech central bank policy meeting [Expected key interest rate unchanged at 0.05%]

The Czech central bank is expected to stick to its near-zero interest rate and its targeted currency rate against the euro at CZK27 as it tries to boost its flagging economy. But emerging markets currency weakness could yet cause it to rethink its policy if the crown comes under further pressure. (AM)

EURO ZONE: 7:45 a.m. EST (1:45 p.m. Frankfurt). European Central Bank policy meeting [Expected main refinancing rate unchanged at 0.25%]

Inflation at less than half of its 2% target and unemployment at 12% suggest the ECB needs to do more. Some economists suggest it will look at trimming its policy rate, though there’s not much further it can go toward zero. Others suggest it will launch a program like the Bank of England’s Funding for Lending Scheme to get credit flowing back into struggling economies. The emerging markets currency crisis is also bound to be a topic of discussion for the policymakers as it spreads to Eastern Europe. (AM)

CANADA: 8:30 a.m. December. International merchandise trade. [In November, exports unchanged, imports +0.1%, trade deficit C$940 million.]

Now that its resources sector is no longer creaming the windfall from high commodity prices, Canada's non-commodity exporters are struggling to fill the void. Even with a weaker Canadian dollar and strengthening demand in the country's most important market to the south have not done much good. The widening trade deficit captures that. (MC)

U.S.: 8:30 a.m
–December U.S. Trade balance. [Expected deficit $35.3 billion vs. deficit $34.25 billion.]

In recent months, the U.S. trade deficit has defied expectations and continued to shrink – partly because of the shale energy revolution, which is reducing U.S. reliance on overseas oil, but also because of the "re-shoring" trend where manufacturers have shifted back to the U.S. and are now exporting from there. Higher heating oil demand as the cold winter set may push those numbers back higher again for this and subsequent months. But the overall trend is one of the U.S. lower its dependence on foreign production. (MC)

– Unemployment insurance weekly claims report. [Initial weekly jobless claims expected 338,000 vs. 348,000 week earlier.]

Unseasonably cold weather across large parts of the country may have led to a downturn in construction work and an increase in applications for unemployment benefits last week. But the general trend remains one of a relatively jobless claim picture. (MC)

– 4Q productivity and cost. [Non-farm productivity expected +3%, same increase as in 3Q; unit Labor costs +0.8% vs. +1.4%.

U.S. productivity growth appears to have accelerated along with growth itself in the second half of the year, but it is still well short of the gains it typically showed before the crisis. (MC)

WORLD: 9:30 a.m. EST. International Monetary Fund regular press briefing

The only time people pay attention to this weekly press briefing is when there's a crisis underway. With emerging markets in the midst of some serious selling, maybe it's worth listening to what the IMF technocrats have to say this time. (MC)

U.S.: 10 a.m. EST. Federal Reserve Governor Daniel Tarullo testifies to U.S. Senate committee hearing

Mr. Tarullo tends to focus on regulatory issues and his take on matters such as the Volcker Rule, systemic risks in the shadow banking sector and other problems relating to the too-big-to-fail banks is always valuable. But he doesn't hold that much sway in monetary policy per se. (MC)

AUSTRALIA: 7:30 p.m. EST (11:30 a.m. Friday, Sydney). Reserve Bank of Australia quarterly statement on monetary policy.

The RBA offers its analysis of the economy in the wake of the interest-rate decision earlier in the week. Look for details of how quickly the central bank sees non-mining sectors of the economy picking up the slack as the long resources boom wanes, which will give clues to whether the RBA is able to remain on hold indefinitely. (MA)

FRIDAY

BRAZIL: 6 a.m. EST. (9 a.m., Sao Paulo). Brazilian Institute of Geography and Statistic January consumer price index. [Previously +0.92% on month, +5.91% on-year.]

Although inflation is within the central bank's target band – through which it targets a 4.5% rate with a 2-percentage-point buffer on either side – it continues to hold near the top end of that. That tendency has kept the central bank in a vigilant state, hiking rates repeatedly, despite a sluggish local economy. If Brazil is to prevent the real from getting further sucked into the swirling crisis around the "Fragile Five" emerging markets (of which it is an unwitting member), it must make sure that inflation is totally contained. (MC)

U.S.: 8:30 a.m. EST. January labor report. [Non-farm payrolls expected +183,000 vs. +74,000 in December; Unemployment rate expected 6.6% vs. 6.7% in December.]

Was last month's deeply disappointing drop an anomaly? If so, there should be a big correction in the January numbers. There would also perhaps be a revision to the December figures. (MC)

CANADA: 8:30 a.m. January labor force survey. [Previous net jobs -45,900; jobless rate 7.2%.]

Canada's labor data are especially volatile. But in general they've been painting a somewhat gloomy picture, that's consistent with other economic indicators there. (MC)

U.S.: Time N/A. Suspension of U.S. federal debt limit expires.

It's remarkable how little attention this looming deadline has received so far – certainly compared with all the angst that arose in the leadup to the last deadline in October, when markets had to contend with the actual possibility that the U.S. government might have to default on its debt. The lack of attention this time stems from the fact that Republicans in the House have already crossed the aisle to support a budget for the next fiscal year. To vote not to increase the debt limit would be to deny funding to a budget they supported. There's a sense that the Obama Administration's Republican opponents mostly believe they have more to lose politically than to gain in launching another round of brinkmanship. (MC)

Muthooth Finance NCD: Should you invest?

Muthooth Finance Non-Convertible Debentures, both secured and unsecured, are open for subscription. With Interest rates still remaining high, companies are finding it good time to raise money from the public by offering higher rates. This company also has been raising money quite frequently primarily due to the nature of its business.

Let review about this NCD to understand the risk associated and the considerable investment options-

The Company
Muthooth Finance is majorly into Gold Loans which is almost 98% of the total business. The business of the company is very much concentrated in southern part of Indian but in recent times it has focused on spreading it other parts of the country. The company revenues (which comes from the interest income) has almost doubled in last two years. Thriving on this increase in income, the company has been expanding rapidly by opening branches across the country.

About NCD
The total size of the issue is Rs 300 crore which is closing on December 2, 2013. The offer is on first come first serve basis and may be extended or pre-closed based on the fulfillment of requirement. The primary objective of this money is to either repay existing liabilities or utilize it for the operational expenses which company has to bear due to heavy expansion.

The company is offering two types of bonds within this NCD-
1 Secured Redeemable- These bonds will be backed by security and investors holding these bonds will be preferred as and when claim by investors arises.
2. Unsecured Redeemable bonds- This bonds will not be backed by any security and so the claim in of these investors will be settled only after other investors have been paid.

The minimum application is of Rs 10000 and then in multiple of Rs 1000.  The issue will get listed on BSE where it will be available for trading.

Interest Rates
The company is offering 12 options to the investors where the maximum rate is of 12.25% for 36 months payable monthly and 12.25% cumulative for 60 months. So effectively the money gets doubled when you invest it for 5 years. The unsecured NCD is of 72 months with a cumulative option.

Risk Factors
Following are the risk factors associated with the issue:
1. Interest Rate Risk- The business of the company is heavily dependent on the interest rates movement. On One side it borrows heavily to stay in the business and second it lends heavily to earn from the business. Both these can be affected for any adverse movement in the interest rates.

2. Default Risk- Although the credit rating of the company is on higher side, there is no denying that every private company has this risk associated with it. Since NBFCs do not have any regulatory restrictions for keeping any liquidity or cash reserves, for companies like Muthooth Finance which is heavily dependent on gold loan, the risk is higher.  The adverse situation of gold prices can also lead to investors default forcing company to recover from the collateral, which may not meet the company funds requirement.

3. Government Control- Gold consumption has been illustrated as a big concern for our country and so there have been measures by the government. RBI has also specifically restricted NBFCs to provide loans only up to 60% of the value. Even bank have been advised to cut down exposure in Loans to such NBFCs. All these measures will impact the business of the company.
Thus, there are risk within this business which are present with the company and which investors will have to take into consideration.

Should you invest?
The rating of the company is good and the yields are quite attractive. But it's wiser to avoid taking a long term bet and a high exposure. If keen to invest for the yield, consider the short term Secured option.

The author is a Investment Adviser & CFP at JS Financial Advisors.