Stocks with Strong Financial Metrics (NASDAQ: GMCR) - Stocks with Strong Financial Metrics (NASDAQ: GMCR) -

Monday, June 11, 2012

Stocks with Strong Financial Metrics (NASDAQ: GMCR) -

Stocks with Strong Financial Metrics (NASDAQ: GMCR) -
Shares of GMCR fell by 7.22% or $-1.67/share to $21.46. NASDAQ is trading at a price to book ratio of 1.67. The PEG is 0.3 suggesting that the shares are trading at an excellent value relative to firm's growth rate. The price to sales ratio came in at 1.03. Thus, the company is not very expensive in terms of its sales. On average, 7770660 shares of GMCR exchange hands on a given day and today's volume is recorded at 3137898. These factors combined may make this company a potential takeover candidate. Value investors may have an eye on this one, especially if the stock gets cheaper.

Green Mountain Coffee Roasters, Inc. (GMCR) is engaged in the specialty coffee and coffee maker businesses.

Money, Sex and Power - Huffington Post

While the 'Spear' debate raged last week a group of activists and academics convened in Cape Town to discuss the very issues that the controversial art sought to raise. The Forum titled provocatively title "Money, Sex and Power: The Paradox of Unequal Growth" brought back a flood of memories. As much as it spoke to an open-ended conversation amongst African intelligentsia, it held the opportunity to start a conversation that would take us back to the Pan African dream of our founding fathers of 'freedom, social justice and bread.'

I found the art distasteful but that's also my opinion of the public political discourse in our country. It fails to address issues of structural causes of our poverty and social inequality. It ignores the sexual assault on our children daily in our schools across the country by predators that masquerade as teachers and rob so many children of their innocence forever.

I also reflect on what the Minister of Safety and Security Siyabonga Cwele, speaking in the National Assembly on Nov. 16, 2011 said when he labelled people and groups opposing provisions of the Secrecy Bill as "local proxies to foreign spies". He ranted on that "foreign spies" were paying civil society groups to oppose the Secrecy Bill.

Predictably the conference was not funded by the South African government or some aid agency. It was convened by the Open Society Foundation -- funded by financier George Soros. Does he have an agenda? Yes, I am absolutely sure of it. Did he have an agenda when he funded one of our first interactions with the representatives of the apartheid establishment?

Yes, I am absolutely sure of that also.

Who in the world does not have some agenda? A mother has a resolute agenda to protect and feed her children. The Chinese have an agenda in Africa. So does India, the U.S., France and every other country.

I also have an agenda. It is to defend our Constitution and ensure that our communities are mobilised to demand their human rights enshrined in it and our contract in 1994 to deliver a better life to our people.

Conferences such as these bring together new voices from around the world into frank African conversations. Its mix of global policy actors with extensive experience gives us insight into how other countries especially in Africa but also in Asia and Latin America are wrestling with similar problems. It connects us to other networks and gives us a sense of the ferment in the world against the putrefying stench of corruption and human greed of the economic and political elites in the world.

It helps me put our domestic situation into real global perspective.

I also took some of these international activists to the launch of the book on the life of Emma Mashinini amongst them Hadeel Ibrahim from the Mo Ibrahim Foundation and Bibi Bakare-Yusuf a young publisher from Nigeria. They made an impassioned plea for us to think more globally and about the continent. In essence that we need citizen to citizen dialogues that transcend the egos of our leaders and the elites of our countries. That our youth of our continent are the motive force for change given they will make up three quarters of Africa's population by 2050. That South Africa was he model of development that placed human rights and social solidarity at the centre of our vision. Yet what we see is a decline in rights, an increasing intolerance that breaks out into ferocious xenophobic violence against foreigners.

So why do we have an American citizen funding our discussion on our African problems? While we have our fair share of hugely wealthy citizens, they are not yet engaging in this kind of challenging philanthropy.

Which of our African philanthropists will finance the public debates about social justice, lesbian and gay rights' governance and transparency of leadership? They put their money into safe bets that will not lead to any conflict with the prevailing elites who control power and run the patronage networks that have made them wealthy; more often it about laundering reputations, money and positioning for publicity and brand recognition.

I think back to our battles of social activism around the right to treatment led by the TAC, or battles to ensure that textbooks are delivered or mass opposition is mobilised against the 'Secrecy Bills.' Not many if any corporate or wealthy individual will support this most basic assertion of our constitutional rights.

I have had people in the corporate sector who shared the trenches with me for decades saying "Jay, we made our contribution already. We have to do business with public sector institutions. I can't be seen to be criticizing government."

So while I may disagree with certain assumptions that Global Foundations make I am grateful that they have in many instances given organisations involved in the social justice sector unqualified support. How else would we have seen the successful mobilisations that changed an arrogant Government that was prepared to let our people who had HIV/AIDS to die because of its Denialism?

But that does not presuppose that I have no criticism of how global philanthropy or present day civil society organisations operate.

I think back to our struggle against apartheid in the 1970s. When we were smashed in 1976 we turned to the painstaking work of organising our people at a community level far from the radar screens of the apartheid regime. It was around the bread and butter issues of our people that we created the tsunami that would one day topple Africa's most powerful regime.

We co-created a vision and strategy that ensured local ownership and grassroots leadership that would withstand the most ferocious attacks of our enemy. We never drew up a business plan or sought out some generous donor. We never entered the struggle for development as a career. We were volunteers driven by the passion. We were outraged by social injustice. It made us fearless in challenging poverty and oppression.

So what has changed nearly 40 years later? Today I am confronted by activists who want to discuss a budget before they have a meeting or launch a campaign. A whole development industry has spawned a merchant class of poverty consultants. Development assistance has been packaged into projects. A new obsession with evidence-based funding has razed the 'green shoots' -- projects with promise -- to conform to a narrow basket of indicators used to assess 'best practice' for bean counters in distant western capitals.

Are we right in demanding the same accountability of philanthropists who are spending their own money as we do of our political leaders spending our taxpayers' money? We need a public debate on this issue.

Many new Foundations view themselves as 'avant garde,' believing that they understand the notion of risk and delivery as they cut a swathe through the underbrush in search of big breakthroughs. Typically, the search is for a new technology or a market-based device that could change lives dramatically.

Ten years of chairing GAIN -- a global foundation fighting malnutrition has shown me the flaws in the modern system of traditional development assistance. The rush to seek single issue-solutions to complex problems fails to recognise or respond to the overarching cultural and political factors that connect them. Worse still, they may recognise these factors and presume a solution. Recipients desperate for financial support take donor aid with the full knowledge that the chances of programme success are minimal. They spend countless hours collecting useless information that does not improve their work at the coal face but satisfy some bean counter in a foreign capital.

The conference focus also on the roles of India, Brazil and China as drivers of growth on the continent and as important political and social actors on the African Development Agenda was critical. Our challenge is that India and China have a single African strategy. Africa has failed to build a coherent development strategy and consequently we have a weakened bargaining power in our negotiations with these powerful economies.

My day in Cape Town proved fruitful. I learnt and more importantly had the opportunity to meet and interact with a passionate, articulate and determined set of activists who hold the hopes to unlock the potential of our beautiful continent and deliver a vision of freedom from corruption, poverty and inequality that our people have a right to.

World stocks, euro up as Spain banks get lifeline - Journal-News

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BANGKOK — World stocks markets rose sharply Monday and the euro got a boost after Spain sought a lifeline for its ailing banks, easing fears that Europe's debt crisis was about to spin out of control. Spain on Saturday asked finance ministers from the 17 ...

CANADA STOCKS-TSX slides on euro zone doubts - Reuters

Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on, video, mobile, and interactive television platforms. Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests.

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Attorney says sex-abuse accusers have 'financial stake' in case against Sandusky -

NBC News' John Yang and legal analyst B.J. Bernstein discuss opening statements in Jerry Sandusky's trial with MSNBC's Thomas Roberts.

Updated at 2:57 p.m. ET: A 28-year-old man testified Monday that former Penn State University assistant football coach Jerry Sandusky treated him "like his girlfriend" for more than two years, showering him with gifts he was afraid he would lose if he told anyone about Sandusky's increasingly sexual behavior.

Sandusky, 68, denies all 52 counts alleging he abused 10 boys over 15 years. Two grand jury reports accused him of having used his connection to the one of the nation's premier college football programs to "groom" the boys, whom he met through his Second Mile charity for troubled children, for sexual relationships.

Earlier, on the opening day of his trial, Sandusky's attorney appeared to surprise prosecutors by listing Sandusky as a possible witness in his own defense.

A jury of seven women and five men heard opening statements in Centre County Court in Bellefonte, Pa., ending months of pretrial wrangling in the high-profile case that led to the firing of head coach Joe Paterno, who won more games than any other major college football coach in history, many of them with Sandusky at his side.

Paterno died in January, a few weeks after he was dismissed for having failed to report Sandusky's alleged abuse.

The first of what could be eight alleged victims took the stand Monday afternoon, testifiying that Sandusky treated him "like his girlfriend" for more than two years, showering him with gifts that he was afraid he would lose if he told anyone about Sandusky's behavior.

(Although the men are being identified by name in court, NBC News and do not identify the victims of alleged sexual assaults.)

Full coverage of the Jerry Sandusky trial

The 28-year-old man, identified as alleged victim No. 4 in Sandusky's child sexual abuse trial, said he endured more than 40 "very uncomfortable" incidents involving Sandusky during the two years, when he was 12 and 13 years old.

The behavior progressed from mutual showers in the Penn State coaches' locker room to hugging and caressing to rolling around together on the floor.

Eventually, the shower incidents progressed to Sandusky's placing the man's hand on his genitalia, said the man, who went on to describe more graphic behavior, including attempted sexual penetration.

In rides in his car, Sandusky would put the man's hand on his knee, "basically like I was his girlfriend," which he said "freaked me out."

"I could not stand it, and it happened almost every time I was in the car" with Sandusky, he said.

Among the gifts he said Sandusky gave him were hockey sticks, golf clubs, a snowboard, Penn State football jerseys and a cherished spot on the sideline during football games, things he said he desperately wanted but was afraid he would lose if he blew the whistle.

"This was something good happening. I never had a father figure, and I'm liking everything I'm getting," he said, adding that he also feared being teased by classmates if they learned that he was "being molested by Jerry."

The man described similar behavior that he said he witnessed with other children.

At a summer camp at the beach, Sandusky would throw children up in the air in the water, "just like you do with a little kid, but he was grabbing them more about the buttocks area," the man said. "It was like brushing over your genitals."

The man confirmed that Sandusky later sent him a letter, which was shown to the jury, in which he wrote:

"I know that I have made my share of mistakes. However, I hope that I will be able to say that I cared. There has been love in my heart. My wish is that you care and have love in your heart. Love never ends."

Sandusky attorney targets accusers
In opening statements, Amendola painted the man and the seven others who are expected to testify as troubled youths out for a big payday in court.

"Jerry Sandusky has always said that he is innocent," Amendola said, noting that as long ago as 1998, local prosecutors had declined to bring charges against him.

The eight alleged victims were already troubled as youths, he said, saying they knew Sandusky in the first place only because teachers and government agencies had referred them to Second Mile because "they had issues."

Alleged victim No. 4 acknowledged that he was referred to Second Mile by a school guidance counselor at his school because "I got in trouble a lot" outside of class.

"You saw those eight photos," Amendola said, referring to photographs of the eight accusers as young boys that the prosecution had presented in its opening statement

"Cute kids — why would they lie?" Amendola asked. "Folks, I don't know, when it comes to money ... the evidence is going to show that six of these eight young men who are going to testify have sued.

"The evidence will show these young men have a financial interest in this," he said. "The testimony is going to be awful, but that doesn't make it true, and that's the bottom line."

Judge refuses to dismiss Sandusky charges

But in his opening statement, Joseph McGettigan, the deputy state attorney general who is leading the prosecution, said the case was about "systematic behavior by a predator."

All of the witnesses are now adults, but McGettigan asked the jurors to "bring your insight (and) understanding of the way children experience things and react to things."

"They were boys. They didn't understand why this happened to them," he said.

McGettigan also indicated that prosecutors would call Michael McQueary to testify, answering one of the key pretrial riddles.

McQueary, a former Penn State assistant coach, told a grand jury that he witnessed Sandusky assaulting a boy in a shower in a Penn State locker room and that he told Paterno about the incident.

But McQueary's accounts of the incident have varied. For example, he testified that he was certain that the incident took place in March 2002 and that he immediately reported it to university officials. But the prosecution says it occurred in February 2001 — more than a year earlier — a discrepancy the defense is sure to highlight.

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Stocks waver on Spain bank rescue plan - USA Today

Stocks fell on Wall Street, an early rally faded on European stock exchanges, and borrowing costs for Spain crept higher on the bond market Monday — all expressions of doubt about the latest fix for a debt crisis in Europe.

"This deal is not the be-all and end-all that will solve Spain's or Europe's other problems," said Ryan Larsen, head of equity trading at RBC Global Asset Management.

The Dow Jones industrial average fell 142 points to 12,411. The broader Standard & Poor's 500 index fell 16 points to 1,308, and the Nasdaq composite index fell 48 points to 2,809.

Market relief that Spain had secured European Union help to save its banking sector quickly turned to concern Monday, as investors began to question the mechanics of the €100 billion ($124.68 billion) loan package and whether the country could manage the extra debt or be forced ask for more help.

The financial respite for Spanish banks sent European most stocks higher: the DAX in Germany surged 1.7%; Spain's Ibex rose 2%; but France's CAC-40 dipped 0.29%.

The markets are also looking ahead to an election this weekend in Greece that will help determine whether that countries stays in the euro currency union.

Monday had started well with markets in Asia and Europe rising on the news on Saturday that Spain had become the fourth — and largest — European country to seek a bailout.

Finance ministers from the 17 countries that use the euro said they were willing to lend Spain up to €100 billion ($125 billion) after Madrid said it would need help to shore up banks felled by bad real estate loans. Spain has not said exactly how much of that it will tap, but markets were cheered by the fact that the nation's government was finally owning up to needing help.

The move was portrayed by Spanish and European officials as a bid to contain Europe's widening recession and financial crisis that have hurt companies and investors around the world. Providing a financial lifeline to Spanish banks was designed to relieve anxiety on the Spanish economy — the fourth-largest in the 17-country eurozone.

Spain's Ibex-35 index shot up 5% on opening, with banks in particular doing very well. But any enthusiasm fizzled. Bank stocks also started the day strongly. Shares in Bankia, which had requested €19 billion in aid to cover its bad loans and assets, rose about 15%, but later fell to 7%.

The interest rates Spain has to pay on its debt also started the day well. The rate on Spanish 10-year bonds — a direct measure of how much investors trust a country to pay its debt obligations— started with a 17 basis point drop. But this soon turned into a rise and by early afternoon it was up 9 points at 6.27% edging closer to the 7% level where the three other European bailout countries — Greece, Portugal and Ireland — sought international assistance.

Investors appear to be growing increasingly concerned that by taking on so much new debt via the rescue package Spain's ability to make interest payments on its debt could be strained dangerously.

"As much as the perception of the situation in Europe may have changed, plenty of risk still remains in place, with question marks over the ability of Spain to repay the debt, especially, if the country fails to get back on the growth path, the outcome of the upcoming Greek elections and the perception of situation in Italy," Anita Paluch of Gekko Global Markets wrote.

Eurozone finance ministers said Saturday they would make the loan of up to €100 billion available to the Spanish government to prop up banks laden with non-performing loans and other toxic assets after the collapse of a real estate bubble. Recession-hit Spain has yet to say how much of this money it will tap while it waits for the results of two independent audits of the country's banking industry. The bailout loans will be paid into the Spanish government's Fund for Orderly Bank Restructuring (FROB), which would then use the money to strengthen the country's teetering banks.

In a report it released late last week, the International Monetary Fund estimated Spain needs at least around €40 billion.

Investors now are very eager to know how much Spain asks for to strengthen its banks and how large a safety margin of extra money it allows itself to cushion itself against further shocks.

"People in the financial markets will be very keen to know what that cushion is, particularly in an environment where the real economy is in poor condition," said Mark Miller of Capital Economics in London.

Spain's economy is in recession, the second in three years while its jobless rate is nearly 25%.

"Markets will certainly ask the question about whether a second bailout might be required and the margin for error between the sort of €40 billion the IMF is saying and the €100 billion ceiling in terms of what we heard," Miller said.

Miller added that with the bailout, Spain's debt-to-gross domestic product ratio — which was a relatively low 68.5% at the end of last year — could shoot up to the 90s next year. And bond yields will remain high.

If the ratio gets up to Greek levels of 120 % or so, and 10-year yields back to the near-7% levels of a few weeks ago, "then people will ask that question about a second bailout," Miller said.

Another issue is whether the European money comes with strings attached for the government, and not just an obligation for banks to restructure. When the bailout was announced on Saturday, Spanish Economy Minister Luis de Guindos said the rescue would not force any new austerity measures on the government.

And speaking to reporters Sunday, Prime Minister Mariano Rajoy avoided using the term 'bailout' to describe the aid, calling it instead a credit line without the strict austerity conditions that have accompanied bailouts for Greece, Portugal and Ireland.

However, on Monday the European Union made clear the money is more than just a loan. Besides being paid back with interest, there will be strings attached for the Spanish government.

"When people lend money, they never do it for free. They want to know what is done with the money," said Joaquin Almunia, the European Competition Commissioner.

"I am not talking about the just the obligation to pay back the money, but also some other kind of terms," he told Cadena Ser radio, adding that these remain to be determined.

But the economy ministry later released a statement saying the package entails "the necessary conditionality for the financial sector" but no new fiscal consolidation or structural reforms beyond those the government has already embarked on.

The loan will be supervised by the European Commission, the European Central Bank and the IMF, Almunia said.

A European Commission spokesman, Amadeu Altafaj, told Spanish state television that this troika will have people on the ground overseeing the restructuring of the Spanish financial sector.

He noted that last month the European Commission recommended Spain undertake further reforms such as speeding up the phasing of a higher retirement age — it is to go from 65 to 67 — and raise VAT sales tax. The newspaper El Pais quoted EU officials Monday as saying these changes and others are part of the conditions that come with the bank rescue package.

Money Pros: Pay off credit cards first, before tackling a home equity loan  - New York Daily News

The Money Pros are standing by to take your questions.

Q. I recently came into some extra money ($5,000) and want to use it to pay off some debts.

I have numerous credit cards, most of them with balances below $500, but they have high APRs.

I also have a home equity loan of just below $12,000 with an APR of 4.75%. It has three and a half years left on it. My payment for that loan is $300 a month.

What do you suggest I use my money for? Do I pay down, or off, the credit cards, or keep paying down the home equity loan?

A. While your home equity loan may be tax deductible, your credit cards are not.

By holding on to them, you are accumulating higher costs for the items you bought. I suspect that your credit cards have a higher rate than the 4.75% you are paying on your home loan. Therefore it is wise to repay the credit cards first.

Within this group, I suggest you retire the debt on some of the cards. Pick the highest rates, pay them off first, and cut the cards up.

No need to close the cards since the rating agency looks at the value of your outstanding debt and your available credit.

If you have money left at the end, begin an emergency fund with the balance.

In the future, try to spend money you have available. By not using credit cards or by paying them off immediately, you will avoid racking up high interest rate charge and gain better control of your finances.

Since you came into an unexpected $5,000, pat yourself on the back and take your loved ones out to dinner to celebrate. Spend no more than $100, while you still have that debt.

Karen Altfest

Karen Altfest is a certified financial planner and a principal advisor at Altfest Personal Wealth Management.

Do you have a question for the Money Pros? Send it to Phyllis Furman at

China financial sector surges through resistance - NASDAQ

At Emerging Money we've addressed the idea of playing rate cuts through the China financial sector, which has been in a strong period of outperformance.

[caption id="attachment_58980" align="alignright" width="300" caption="Bank of China headquarters"] Image courtesy Yoshi Canopus: [/caption]

On May 14th, in " How to Play China's Rate Cuts ", I noted that an important technical resistance level was being reaching in the relative price ratio of China's financial sector to China itself. I specifically stated that "if investors believe more is to come, I suspect we could see a breakthrough and continuation of outperformance by China's banks."

Below is an updated version of that chart, which shows the price ratio of the Global X China Financials ETF ( CHIX , quote ) relative to the iShares FTSE China 25 Index Fund ( FXI , quote ). As a reminder, a rising price ratio means the numerator/CHIX is outperforming (up more/down less) the denominator/FXI.

I've annotated the chart to show that a significant break through the horizontal ratio resistance line has indeed happened, as markets cheered last week's rate cut by the People's Bank of China.

Further stimulus and monetary easing seems ever more likely, which could result in a continuation of strength in the China financial sector. This in turn would be bullish for China overall given that much of the concern over the world's second large economy centers around slowing lending and credit growth.

With proactive measures being taken, it appears the China financial sector is anticipating broader strength, and recovery to come. Welcome back to the global reflationary environment.

This writing is for informational purposes only and does not constitute an offer to sell, a solicitation to buy, or a recommendation regarding any securities transaction, or as an offer to provide advisory or other services by Pension Partners, LLC in any jurisdiction in which such offer, solicitation, purchase or sale would be unlawful under the securities laws of such jurisdiction. The information contained in this writing should not be construed as financial or investment advice on any subject matter. Pension Partners, LLC expressly disclaims all liability in respect to actions taken based on any or all of the information on this writing.

US STOCKS-Spain bailout rally brief as Wall St slides - Reuters UK

Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on, video, mobile, and interactive television platforms. Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests.

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