Monday, September 30, 2013

5 Reasons This Is the Year to Watch the NHL

PORTLAND, Ore. (TheStreet) -- The most difficult part about being a fan of the National Hockey League is explaining to people who aren't into hockey just what the appeal is.

From a hockey fan's formative years, he or she has learned how to follow the puck, why the intricacies of the rulebook matter, what team to swear allegiance to and how to be a fan of the overall game despite said allegiance. Fans learn the value of a late West Coast game and a playoff game in its third overtime. They learn how to cope with loving a sport that fills the same buildings as National Basketball Association teams, but gets a fraction of the coverage or recognition.

NHL fans also know disappointment, frustration and outright rage. Until last year, the league was riding a seven-year streak of increasing revenue that had grown to $3.3 billion. In major league sports -- where the Major League Baseball brings in $8 billion in revenue and the National Football League generates $9.5 billion, including more cash from TV than the NHL creates from its entire operation -- that's not a whole lot.

Yet the NHL brings that pittance upon itself. Gary Bettman was named the league's first commissioner in 1993 and, by 1994, it would have its first player lockout. That cost the league 104 days of its season, shrank the schedule to 48 games from 84 and canceled the first of the 2,100 games that would be lost during Bettman's time at the help. The league lost television contracts with Fox (FOXA) and ESPN and moved franchises from Winnipeg, Quebec City and Minneapolis/St. Paul while planting teams in Phoenix, Ariz., Atlanta and an ambiguous portion of Florida. It lost an entire season thanks to a lockout in 2004 and 2005 -- the first time the league didn't award a team the Stanley Cup -- and, learning nothing, threw away half of this past season and a highly anticipated New Year's outdoor game between the Detroit Red Wings and Toronto Maple Leafs at Michigan Stadium because of another labor dispute. Revenue dipped to $2.4 billion last year and Russia's Kontinental Hockey League, smelling blood in the water, poached New Jersey Devils star Ilya Kovalchuck a year after he helped that team to the Stanley Cup Final. The KHL is now trying to convince Washington Capitals superstar Alexander Ovechikin to return to Dynamo Moscow, where he played during the last lockout. Also, as Forbes noted before the most recent labor dispute, the NHL has only a handful of teams that make money. The Toronto Maple Leafs, New York Rangers, Montreal Canadiens, Vancouver Canucks and Edmonton Oilers combined to make $212 million during the 2010-11 season; the other 25 teams lost $86 million. So why should anyone who's not already a hockey fan get invested in the shambolic mess that is the NHL? Perhaps more importantly, why should a league that's had teams in the United States for nearly a century continue to woo non-fans who continually treat the sport as if it's some strange alien disc game played only by Krakens? Because this is the year. We're not kidding. This is the first time in about 20 years that NHL hockey has a legitimate chance of crossing over into the mainstream sports consciousness, and we have five reasons why you should stop scoffing, put on a sweater and start believing:

The TV deal

When was the last time the NHL had anything resembling visibility? Try 2004.

Just before the lockout cost it a full season, the NHL and Disney (DIS) had a deal that allowed ESPN to show games during the week and to give folks such as Barry Melrose and John Buccigross actual jobs instead of just trucking them out for the occasional SportsCenter segment. Disney broadcast playoff games and the Stanley Cup Finals on ABC and all was right with the world. Also see: Is The NHL Really Still the No. 4 Sport?>> Until it wasn't. After the lockout, the folks at ESPN began forming their position that hockey wasn't a "real" sport that merited coverage. The Worldwide Sports Leader was getting money and interest from more lucrative sports and couldn't be bothered to expend airtime on a league that just scotched its whole season and failed to award a Stanley Cup for the first time since 1919. With few other options, the league jumped to the Outdoor Life Network in a move roundly criticized as a trip to sports purgatory. For a league with a knack for bumbling itself into terrible positions more often than not, the NHL accidentally made the best decision of its post-lockout life. Outdoor Life became Comcast-owned Versus. After Comcast> (CMCSA) merged with NBC, Versus was rebranded as the NBC Sports Network and folded into the network's expanding sports coverage. Last year, NBC paid $2 billion for 10 years of NHL coverage. That's couch change compared with the $1.9 billion ESPN is paying per year to broadcast Monday Night Football alone, but it's triple what the league was getting in rights fees before. Fans, meanwhile, can catch games on an easy-to-find network and have access to every game of the NHL playoffs through NBC, NBC Sports Network and CNBC. While ratings are still a fraction of those posted by other sports, the 392,000 viewers per game that the NHL averaged last season was its highest viewership since the 1993-94 season, when the New York Rangers were on their way to the franchise's first Stanley Cup in 54 years and games were broadcast on ESPN and ESPN 2. The NHL hasn't done a whole lot right in the past 20 years, but that one post-lockout move to an unpopular network may have saved the league from being flung to some far corner of the ESPN spectrum.

More outdoor games

In 2003, the NHL took a chance and hosted a game between the Montreal Canadiens and Edmonton Oilers in Edmonton's Commonwealth Stadium. The result was a 4-3 win for the Canadiens in front of a crowd of 57,167, but the grand conclusion of the experiment was that an outdoor game not only worked, but brought a whole bunch of people out to watch.

It took the league a painful five years to try it again, but on Jan. 1, 2008, at Ralph Wilson Stadium in Buffalo, N.Y., the snow fell, the goalies wore knit hats, the rink crew came prepared with shovels, and Sidney Crosby gave the Pittsburgh Penguins the win over the Buffalo Sabres in front of 71,217. Afterward, every NHL town wanted an outdoor game and even casual hockey fans made time on New Year's Day to watch the games. The last Winter Classic matchup between the New York Rangers and Philadelphia Flyers at Philadelphia's Citizens Bank Ballpark in 2011 drew 3.74 million viewers. That was the fifth most-watched NHL game since 1975. A year earlier, when weather at Heinz Field in Pittsburgh forced the league to move the Winter Classic to prime time, 4.57 million people tuned in. During last year's lockout, fans didn't bemoan the loss of early regular season games nearly as much as they mourned the loss of the Winter Classic matchup between the Toronto Maple Leafs and Detroit Red Wings at Michigan Stadium in Ann Arbor, Mich. It was too much collateral damage and, ultimately, helped the league and its players salvage a shortened season. This year, Ann Arbor gets its long-awaited Winter Classic as NHL fans get a total of six outdoor games. The 2014 Coors Light NHL Stadium series starts Jan. 24 at Dodgers Stadium in Los Angeles with a matchup between the Los Angeles Kings and Anaheim Ducks before moving to New York to Jan. 26 and 29 as the Rangers host the New Jersey Devils and New York Islanders, respectively, at Yankee Stadium. On March 1 in Chicago, the site of the 2009 Winter Classic, the reigning NHL Champion Blackhawks host the Pittsburgh Penguins at Soldier Field. That's followed March 2, when the Vancouver Canucks and Ottawa Senators take the outdoor ice at Vancouver's BC Place for the Heritage Classic. Also see: 7 Towns That Really Want Your Sports Team>> Will all those games dilute the Winter Classic's appeal? Doubtful. Of the six most-watched NHL games of the past 27 year, five are Winter Classics. The game's New Year's Day date gives it some extra help, while the Stadium Series matchups only fuel large markets' appetite for outdoor matchups. Given the host cities' responses to outdoor games, it's a tough opportunity for the NHL to pass up.

Realignment

Four divisions, two conferences. It'll mean more rivalry games, every team playing in every arena every season and, aside from the Florida teams, geographically contiguous divisions.

This is where the die-hards scowl and start longing for the days of the old Patrick and Norris divisions, but where just about every hockey fan not in the Chicagoland or Detroit areas breathes a sigh of relief. Here's the short version: The NHL had six divisions and two conferences, it's now down to four divisions and two conferences. Why? Mostly because you had a handful of teams doing a disproportionate amount of traveling between time zones. The Detroit Red Wings and Columbus Blue Jackets were the only two teams in the Eastern time zone playing in the league's Western Conference. This meant fans were routinely subject to obnoxiously late start times for away games as their teams logged a whole lot of travel miles. The Winnipeg Jets, meanwhile, were still stuck playing teams based predominantly in the East after the franchise moved from Atlanta in 2011. The Dallas Stars didn't have it much easier, as their division foes were well to the West. That's all changed under the current alignment shifting the Blue Jackets into the Metropolitan Division with the nearby Pittsburgh Penguins and the Red Wings into the Atlantic with its old rivals the Toronto Maple Leafs and closer competitors in Ottawa and Buffalo. Dallas and Winnipeg now share space in the Central with Chicago, St. Louis, Minnesota, Nashville and Colorado. Meanwhile, shifting the Vancouver Canucks and San Jose Sharks into the same division in the Pacific should create some friction between the playoff rivals. Some facets of this change still don't smell quite right. Blackhawks and Red Wings fans aren't thrilled about their rivalry being minimized, while the Tampa Bay Lightning and Florida Panthers are still wondering why they have to leapfrog the entire Metropolitan Division to get to their rivals in the Atlantic. With Quebec City already starting work on an NHL arena, it would be hard to blame cynical fans for wondering whether the league foresees one of the Florida clubs heading north in the near future. Also, with each division in the Western Conference one team lighter than their counterparts in the East, there are still unanswered questions about possible expansion into NHL-ready towns including Kansas City, Portland, Ore., and Seattle. What we do know, however, is that this whole alignment is going to make the playoffs a lot more interesting. The top three teams from each division make it in, the last four teams consist of the two teams with the most points in each conference. Basically, a weak division can send just three teams while its stronger counterpart sends five. The league's adding a wildcard system that should benefit division champs a bit, but all of it could be moot in two years when the NHL re-evaluates the whole thing.

Seth Jones

We've made a bunch of allusions to the NHL's relative Gilded Age in the '90s, but there's one big part of that equation that we haven't mentioned: U.S. players.

With no offense meant to folks such as Zach Parise and Tim Thomas, the number of U.S. superstars in the league is nowhere near the level it was 20 years ago. At that time, players including Jeremy Roenick, Tony Amonte, Brett Hull (we know where he was born, but his Olympics and World Cup of Hockey sweaters read "USA"), Mike Modano, Brian Leetch, Keith Tkachuck, Kevin Stevens, John LeClair, Chris Chelios and Mike Richter made the sport accessible to U.S. fans and drew a direct lineage from the 1980 "Miracle On Ice" Olympic team that got many hockey-loving kids south of Canada hooked in the first place. Despite the proliferation of rinks, leagues and other infrastructure that made hockey more accessible in the U.S. as the sport expanded south, U.S. players faded from superstardom and gave way to Crosby, Ovechkin, Malkin, Datsyuk and other great but decidedly foreign players. Last year in Portland, Ore., fans in the know got a sense that all that was changing. Seth Jones, son of former NBA player Popeye Jones and born at the peak of the last hockey boom in 1994, picked up hockey in Denver while his dad was playing for the Nuggets. Words of advice from future Hockey Hall of Famer Joe Sakic led to his first skating lessons, while a seat at Game 7 of the Colorado Avalanche's 2001 Stanley Cup win gave him a taste for the sport. Earlier this year, the now highly coveted Jones helped push the U.S. to gold in the World Junior Championships. Later, he guided junior hockey's Portland Winterhawks to the Western Hockey League championship and took the league's Rookie of the Year honors with 14 goals and 42 assists. For his efforts, the Nashville Predators made him the No. 1 overall pick in this year's draft. That makes him just the second defenseman since 1996 to earn that honor and only the seventh U.S. player to claim the No. 1 pick. That drew the attention of Jay-Z, who told the New York Post that he'd like to add Jones to the stable of his new Roc Nation sports agency and "be involved in the star's marketing and branding." Having seen what Jones can do firsthand here in Portland, we're convinced he has the ability to be a scoring defenseman the likes of which the U.S. hasn't seen since Leetch. Unlike the soft-spoken, reserved Ranger, however, Jones has the opportunity to draw star power: greater players including the Bruins' Zdeno Chara, the Blackhawks' Duncan Keith and Montreal's P.K. Subban -- all of whom rank among the best defenders in the game. At a time U.S. hockey could use its Sidney Crosby, Alex Ovechkin or even its own version of the NBA's LeBron James, Jones represents its best home in a good, long time.

NHL '94 returns in NHL '14

Perhaps just as important as what was happening on the ice 20 years ago was the NHL experience that Electronic Arts (ERTS) was creating off it.

EA's NHL '94 was not only a video game milestone, but a cultural touchstone for a whole generation of gamers and sports fans. Its blue ice, organ music, stiff-armed goal celebrations and pixelated graphics are seared into the memory of just about any member of Generation X who ever owned a Sega Genesis or Super Nintendo game console. If you loved to cut and deke through defenses as Jeremy Roenick, crank long-range goals as the New Jersey Devils' Darren Richer or pick the Toronto Maple Leafs' Tie Domi just to make Wayne Gretzky's head bleed Swingers style, there's a strong chance you still don't think a better hockey video game has ever been created. In some ways, EA agrees. With recent incarnations of its NHL series derided as bland and overly technical, EA decided to include an NHL '94 mode in its latest game and bring the experience into the Sony PlayStation 3/Xbox 360 era just as it ends. The gameplay is just as fast, the physics make the checks and dekes a bit more believable, but the important stuff such ass the star-shaped indicators and retro players including Roenick, Gretzky and Mario Lemieux are all still there. Unlike the original, however, you're actually allowed to drop the gloves and fight in this one. Times may have changed a bit, but the formula for bringing Gen X back to hockey still involves NHL '94. -- Written by Jason Notte in Portland, Ore. >To contact the writer of this article, click here: Jason Notte. >To follow the writer on Twitter, go to http://twitter.com/notteham. >To submit a news tip, send an email to: tips@thestreet.com. RELATED STORIES: >>7 NFL Football Apps You're Going to Need This Season >>5 Pro Sports Towns Doing Just Fine Without the NFL >>5 NFL Teams Most Likely To Be Blacked Out In 2013

Jason Notte is a reporter for TheStreet. His writing has appeared in The New York Times, The Huffington Post, Esquire.com, Time Out New York, the Boston Herald, the Boston Phoenix, the Metro newspaper and the Colorado Springs Independent. He previously served as the political and global affairs editor for Metro U.S., layout editor for Boston Now, assistant news editor for the Herald News of West Paterson, N.J., editor of Go Out! Magazine in Hoboken, N.J., and copy editor and lifestyle editor at the Jersey Journal in Jersey City, N.J.

Friday, September 27, 2013

Who’s Left in the Small Cap Medical Robotics Space? (ISRG, ARAY, HNSN, MAKO & SYK)

Yesterday, small cap medical robotics stock MAKO Surgical Corp (NASDAQ: MAKO) soared 82.19% after it was announced that Stryker Corporation (NYSE: SYK) would acquire it – meaning it might be time to take a closer look at large cap medical robotics leader Intuitive Surgical, Inc (NASDAQ: ISRG) along with small caps Accuray Incorporated (NASDAQ: ARAY) and Hansen Medical, Inc (NASDAQ: HNSN). MAKO Surgical Corp markets both its RIO Robotic Arm Interactive Orthopedic System and proprietary RESTORIS family of implants to surgeons for a procedure called MAKOplastythat provides a less invasive method for knee resurfacing and a new procedure for Total Hip Arthroplasty. Stryker Corporation, whose medical technologies include reconstructive, medical and surgical, and neurotechnology and spine products, agreed to pay $1.65 billion or $30 a share for a massive 86% premium for MAKO Surgical Corp. That's sounds great for investors unless you are an investor who go in the stock back in 2011 and early 2012 when shares hit as high as the $43 level.

With that deal in mind, here is a look at the remaining medical robotics stocks:

Intuitive Surgical. Since its first da Vinci System shipment, large cap Intuitive Surgical has expanded its installed base to more than 2,025 academic and community hospital sites. According to the company's website, approximately 450,000 da Vinci procedures were performed in 2012, up 25% from 2011 and its the #1 option for minimally invasive hysterectomy in the US for benign reasons, the #1 treatment for women facing gynecologic cancer and its used in four out of five radical prostatectomies. Near the end of July, Intuitive Surgical announced it would repurchase an additional $779 million in outstanding common stock which brings total amount available for share repurchases to approximately $1.5 billion plus $500 million would be spent on an accelerated basis. Several analysts were skeptical about the buyback effort with S&P Capital analyst Phillip Seligman saying to the effect that the announcement was in response to the company's less-than-favorable [2013 second-half] guidance. Intuitive Surgical had his the $580 level earlier this year before sliding after reports that regulators were looking into increased complaints about the company's da Vinci surgical system with ISRG maintaining that new reporting requirements resulted in an unsurprising increase in complaints. More bad news during the summer about a sales decrease and a warning letter from regulators has not helped the stock. On Wednesday, Intuitive Surgical rose 0.94% to $367.31 (ISRG has a 52 week trading range of $357.02 to $585.67 a share) for a market cap of $14.59 billion plus the stock is down 23.4% since the start of the year, down 29.1% over the past year and up 26.3% over the past five years.

Accuray Incorporated. A radiation oncology company that develops, manufactures and sells personalized innovative treatment solutions, small cap Accuray Incorporated's technologies include the CyberKnife and TomoTherapy Systems which are designed to deliver radiosurgery, stereotactic body radiation therapy, intensity modulated radiation therapy, image-guided radiation therapy and adaptive radiation therapy. In late August, Accuray Incorporated's shares were rising after reporting earnings. Jefferies & Co. analyst Raj Denhoy also noted that Accuray Incorporated is moving in the right direction because orders are increasing and the company is getting better at keeping its costs under control. Nevertheless, Accuray Incorporated still has a long history of losses as its reported net losses of $103.22M (fiscal 2013), $72.04M (fiscal 2012), $26.68M (fiscal 2011) and net income of $2.84M (fiscal 2010) for the past few fiscal years. The company also announced that it's seeking a new manufacturing strategy for the InCise multileaf collimator option on the CyberKnife M6 System – meaning possible product delays over the near term. On Wednesday, small cap Accuray Incorporated rose 1.86% to $7.12 (ARAY has a 52 week trading range of $3.76 to $7.38 a share) for a market cap of $531.90 million plus the stock is up 12.8% since the start of the year, down 2.2% over the past year and down 18.2% over the past five years.

Hansen Medical. A global leader in intravascular robotics and the developer of robotic technology for accurate 3D control of catheter movement, Hansen Medical's Magellan Robotic System and Magellan Robotic Catheter represent a new peripheral vascular robotic catheter system designed to enable physicians to remotely and precisely manipulate robotically steerable catheters and standard guidewires using advanced controls and visualization.

Back in August, Hansen Medical announced that it has closed the private placement through which approximately 28.5 million shares of common stock were purchased by Oracle Investment Management, leading medical device executive Jack W. Schuler, certain members of the Company's Board of Directors, and other existing and new shareholders, including several former healthcare executives. Gross proceeds of the private placement totaled approximately $35 million. Hansen Medical also closed a $33 million, long-term debt agreement with White Oak Global Advisors, LLC where the new facility will require quarterly interest-only payments through December 30, 2017, at which time the Company will also pay the principal balance. Otherwise, investors should be aware that Hansen Medical has reported revenues of $17.64M (2012), $22.13M (2011), $16.63M (2010) and $22.20M (2009) along with net losses of $22.14M (2012), $16.71M (2011), $37.90M (2010) and $52.45M (2009). On Wednesday, small cap Hansen Medical surged 14.91% to $1.85 (HNSN has a 52 week trading range of $1.14 to $2.75 a share) for a market cap of $125.34 million – no doubt on speculation given the MAKO acquisition plus the stock is down 9.8% since the start of the year, down 11.5% over the past year and down 87.5% over the past five years.

Finally, here is a look at the stock performance of all four medical robotics stocks:

As you can see from the long-term chart, the MAKO Surgical Corp followed by large cap Intuitive Surgical have been the best performing medical robotics stocks while Accuray Incorporated and Hansen Medical have been underperformers.

Thursday, September 26, 2013

Adviser head count expected to drop amid lack of new recruits

adviser, headcount, wirehouse, independent broker-dealer, broker-dealer, cerulli

The advice industry is still struggling to attract new talent while facing a potentially huge number of retirements by aging advisers.

By 2017, the industry will shed more than 25,000 advisers, down from just over 280,000, due largely to retirements, according to a new report Monday from Cerulli Associates Inc.

After peaking in 2005, the overall industry head count has fallen by more than 32,000 advisers, according to Cerulli. The firm is predicting that the losses will come mostly from the wirehouse, independent broker-dealer, bank and regional channels.

The latest predictions point to a continued trend toward fewer advisers, a worrisome development as the ranks of retired baby boomers swell.

“A good number of advisers are coming up on retirement,” said Sean Daly, a Cerulli analyst. About 10% of advisers were over age 65 as of yearend, so “the potential is there for rapid retirements.”

Whether a significant number of advisers continue to work past normal retirement age remains to be seen, he said.

Regardless, financial firms must work on ways to bring in a new generation of advisers, Mr. Daly said.

He noted that some firms have been improving and lengthening training programs, offering scholarships to CFP candidates, and giving incentives for teams to bring on junior partners.

The traditional recruitment channel is to go to a wirehouse, but new advisers get burned out in that channel, said David Grant, founder of Finance for Teachers, Inc.

“Even if they know about the independent channel, [young advisers] say it's hard to get hired,” he said.

Spots at promising independent firms are few, and competition is robust, said Mr. Grant, who has led a National Association of Personal Financial Advisors' networking program for young advisers.

At the same time, advisory firms have complained about not being able to find good entry-level candidates.

Some independent firms prefer people with some business experience who may relate better to wealthier clients than a fresh-scrubbed graduate, Mr. Daly said. And they may have a limited pool of candidates in their geographic area.

Some college students are turned off by financial planning because the perception is that “they have to go out and sell stuff,! 221; said Michael Kitces is a partner and the director of research for Pinnacle Advisory Group Inc.

And other financial careers have better defined career paths, Mr. Kitces added.

Meanwhile, financial firms will have to figure out how to manage more assets per adviser, Mr. Daly added.

In fact, that's already happening. The average adviser last year managed about $35 million, but today that's closer to $41 million, Mr. Daly said.

Are you a young adviser looking to become a financial adviser? Join us for our virtual career fair on Nov. 8. Register now Like what you've read?

Wednesday, September 25, 2013

Vietnam ETF Could Offer a Year-End Surprise

Southeast Asia has not been immune from economic controversy this year.

ETFs tracking Indonesia, the region's largest economy, have plummeted due to the country's widening account deficit and sagging rupiah. The iShares MSCI Malaysia ETF (NYSE: EWM) look good for a minute after national elections there earlier this year, but the fund wilted in the face of Federal Reserve tapering chatter. And the list goes on.

Related: Asia's Former Darling ETFs Hemorrhage Cash.

The Market Vectors Vietnam (NYSE: VNM) has not been immune from the tumbles experienced by other Southeast Asia ETFs. As was the case last year, VNM has gone through another summertime swoon in 2013. When things get tough for VNM, the problems are usually attributable to Vietnam's banking sector. The financial services sector accounts for nearly a third of VNM's weight.

In 2012, VNM sank following the arrests of some Vietnamese banking scions that exposed corruption in some of the country's largest financial institutions. This year, VNM's summer swoon was not only the result of the tapering debacle, but Vietnam's struggle's to efficiently implement a plan to absolve banks of toxic assets and sour loans.

Top 5 Small Cap Companies To Invest In Right Now

The Vietnam Asset Management Company, or VAMC, is Vietnam's TARP equivalent and it has, to this point, been slow-moving and unimpressive.

"Fitch expects any recovery in the banking system to be gradual, depending on the pace and effectiveness of reforms, and regulatory discipline. The Vietnam Asset Management Company (VAMC) may not tackle many of the asset-quality issues in the near term because some aspects of its operations are still unclear and regulatory rules to improve asset-quality data transparency have been delayed until June 2014. Banking consolidation and reform of state-owned enterprises are likely to progress slowly over the medium-term," according to Fitch Ratings.

That does not mean VNM does not offer potential for year-end gains. In each of the previous three years, the ETF has performed well in the fourth quarter, but beyond seasonal trends, there is a decent fundamental backdrop for Vietnamese equities.

While VNM has posted a gain of just 1.1 percent this year, local stocks have surged 16 percent, good for one of the region's best performances. Even VNM's meager gain is better than what investors would have been treated to with the iShares MSCI Thailand Investable Market ETF (NYSE: THD) or the iShares MSCI Indonesia ETF (NYSE: EIDO).

Additionally, Vietnamese policymakers seem intent on, for once, tackling inflation rather than driving growth. Few ETFs, save for India funds, have been as vulnerable to inflation over the years as VNM. Inflation is expected to be about eight percent this year, but the government thinks it can get that number down to seven percent next year.

Previously mentioned as a potential upside catalyst for Vietnamese equities is a plan to increase foreign ownership limits. One fund manager quoted by the Wall Street Journal recently said Vietnamese stocks could jump 10 percent if that plan is approved, adding that foreign fund managers could be compelled to reconsider Vietnam if equity markets there become more liberalized.

VNM does offer investors another ace up its sleeve. The country has a current account surplus. Investors do not have to overpay for that surplus, either. VNM has a price-to-book ratio of 1.22, well below those of the comparable China and South Korea ETFs, two markets which have recently been lauded for their discounts relative to the broader emerging markets universe.

For more on ETFs, click here.

Disclosure: Author does not own any of the securities mentioned here.

Monday, September 23, 2013

Week Ahead: Stocks Navigate Threat Of Government Shutdown & Default

The Standard & Poor's 500 shares index is up more than 20% this year, but over the next week stock markets will have to navigate the twin threats of a possible U.S. government shutdown and debt default and digest a slew of economic indicators and big company news.

Another surreal week in Washington will see the clock ticking to reach budget and debt deals and avoid shutdown and default

Most analysts consider the threats of a government shutdown and debt default to be remote, but the fact they are once again a technical possibility could be viewed as potentially troublesome for stocks, at least in the short term.

However remote, the prospect of a government shutdown or a default on the federal debt is reminiscent of 2011 when a similar stand-off in Washington led eventually to the United States losing its AAA credit rating and helped prompt a stock market correction.

Both the S&P 500 and the Dow Jones Industrial Average touched all-time highs on September 18, and U.S. stocks have recovered the trillions of dollars in market value they lost in the financial crisis of 2008, so many investors will watch the posturing over potential shutdown and default in Washington with concern.

Having eventually regained their stock market wealth and put retirement plans back on track, Americans do not like to see both threatened by juvenile political show boating.

Investors hope the U.S. Senate will vote this coming week on a temporary budget to keep the federal government operating from October 1 through December 15.

If the politicians don't agree on a budget deal in the next few days, there is a risk, however small, of a federal government shutdown starting October 1. The politicians must also vote by the middle of October to raise the federal debt ceiling in order to prevent a default.

Analysts expect ugly compromises as usual and last-minute deals to avoid a shutdown and default, but the dangerous brinkmanship reflects poorly on the politicians involved and makes markets nervous.

Companies reporting earnings will include home builders Lenar and KB Homes on Tuesday, Bed Bath & Beyond on Wednesday and Nike on Thursday.

On Monday, Goldman Sachs, Visa and Nike are due to replace Bank of America, Hewlett-Packard and Alcoa in the Dow Jones index of 30 major stocks.

Also on Monday, Microsoft is expected to reveal its two new Surface tablet products.

There will be U.S. data for consumer confidence and home prices on Tuesday, updates on durable goods orders and new home sales on Wednesday, news on Gross Domestic Product, initial jobless claims and U.S. pending home sales on Thursday, and personal spending and more consumer confidence data on Friday.

In Europe and Asia, a mountain of economic indicators will be published throughout the week.

Bed Bath & Beyond is among the companies reporting earnings this coming week

A number of U.S. Federal Reserve regional presidents will make speeches in the coming week, amid conflicting and confusing signals from Fed sources on when it might start to reduce its $85 billion a month bond-buying stimulus measures.

Sunday, September 22, 2013

Morning Briefing: 10 Things You Should Know

NEW YORK (TheStreet) -- Here are 10 things you should know for Wednesday, Sept. 18:

1. -- U.S. stock futures were rising following modest gains across the globe as investors await an announcement from the Federal Reserve on its plans to taper economic stimulus.

European stocks were higher. Asian shares finished the session mixed. Japan's Nikkei 225 index rose 1.4%.

2. -- The economic calendar in the U.S. Wednesday includes housing starts and building permits for August at 8:30 a.m. EDT, and the rates decision from the Federal Open Market Committee in the afternoon. 3. -- U.S. stocks on Tuesday rose as investors await guidance from the Fed about the future of its sweeping economic stimulus program. The S&P 500 rose 0.42% to close at 1,704.76 while the Dow Jones Industrial Average added 0.29% to finish at 15,539.63. The Nasdaq gained 0.75% to 3,745.70. 4. -- Walgreen (WAG) is set to become one of the largest employers to make sweeping changes to company-backed health programs. The drugstore giant is expected to disclose on Wednesday a plan to provide payments to eligible employees for the subsidized purchase of insurance starting in 2014, according to The Wall Street Journal. The plan would affect roughly 160,000 employees, and will require them to shop for coverage on a private health-insurance marketplace. Walgreen joins a list of companies making changes to their benefits. IBM and Time Warner said recently they will move thousands of retirees from their own company-administered plans to private exchanges. 5. -- Starbucks (SBUX) said guns are no longer welcome in its cafes, though the coffee chain stopped short of an outright ban on firearms. The request is being made in part because more people have been bringing guns into Starbucks over the last six months, prompting confusion and dismay among some patrons and employees, CEO Howard Schultz told Reuters in an interview. In an open letter to customers issued late Tuesday, Schultz said: "Our stores exist to give every customer a safe and comfortable respite from the concerns of daily life." Starbucks' long-standing policy had been to default to local gun laws, including "open carry" regulations that allow people to bring guns into stores, Reuters noted. Schultz said he hopes people will honor the request not to bring in guns but said the company will nevertheless serve those who do. "We will not ask you to leave," he said. Starbucks has almost 7,000 company-operated U.S. stores. 6. -- Adobe Systems (ADBE), the maker of creative-suite products like Photoshop and InDesign, said fiscal third-quarter earnings on an adjusted basis fell to 32 cents a share from 58 cents a share a year earlier. Revenue fell 8% in the quarter to $995.1 million. Wall Street expected Adobe to report earnings of 34 cents a share on revenue of $1.01 billion. Adobe has been shifting its business to a subscription-based model. The company said subscription revenue rose 73% to $299.4 million. The company said its Creative Cloud service gained 331,000 paying subscribers during the quarter, surpassing 1 million. 7. -- FedEx (FDX) is expected by Wall Street on Wednesday to report fiscal first-quarter earnings of $1.50 a share on revenue of $10.97 billion.

8. -- Software maker Oracle (ORCL) is expected by analysts to post fiscal first-quarter earnings of 56 cents a share on revenue of $8.48 billion.

9. -- A report by the 9to5Mac blog said Apple's (AAPL) iPhone 5s could be in short supply. Customers in China and Hong Kong could reserve the iPhone 5s starting Tuesday. But just minutes after the phone became available, most models and colors sold out across the country, the blog reported. The rate at which the 5s sold out in China doesn't bode well for the rest of the world, as it suggests that overall supply in general of the 5s is low, according to 9to5Mac. Apple begins selling the iPhone 5s in retail stores on Friday. 10. -- Employees from US Airways (LCC) and American Airlines (AAMRQ) are in Washington, lobbying members of Congress to support a planned merger of the two carriers, despite opposition from the Justice Department. The employees, including leaders of unions at the two carriers, will hold individual meetings with members of Congress on Wednesday, and they will gather for a noon rally near the Capitol building, The Dallas Morning News reported. -- Written by Joseph Woelfel >To contact the writer of this article, click here: Joseph Woelfel >To submit a news tip, send an email to: tips@thestreet.com.

Copyright 2013 TheStreet.com Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed. AP contributed to this report.

Saturday, September 21, 2013

Hiring a Financial Advisor: Making Sense of Certifications

By Hal M. Bundrick

NEW YORK (MainStreet) -- Investors seeking financial guidance are bombarded by advisor certifications. And there are many. The Financial Industry Regulatory Authority, Inc., an independent regulator of U.S. securities firms, lists pages and pages of designations on its website. It is easy to assume that a certification requires an advisor to meet certain ethical standards, gain advanced knowledge and pass stringent tests. Not always. Some of these alphabet badges are simply bought and paid for.

The Securities and Exchange Commission and the North American Securities Administrators Association are advising consumers to do a little homework before trusting an advisor with a string of letters following their name on a business card.

"Do not rely solely on a title to determine whether a financial professional has the expertise that you need -- find out what the title means and what the financial professional did to obtain it," says the SEC in an investor bulletin. "Some titles are granted by private organizations, such as a trade group. Still other titles may be simply purchased, or even made up by financial professionals hoping to imply that they have certain expertise or qualifications; such titles are generally marketing tools and are not granted by a regulator. As with any title, you should verify a financial professional is really qualified to advise you." The SEC and NASAA note that some groups that grant titles do not even take complaints or discipline their members. The agencies suggest asking these questions of any advisor touting a title: � What is the name of the organization that awards the financial professional title? What are the training, ethical, and other requirements to receive the title? Did you have to take a course and pass a test? Does the financial professional title require a certain level of work or educational experience? To maintain the financial professional title, are you required to attend periodic continuing education courses? Consumers can usually confirm any information a financial professional provides regarding a certification by checking the website of the organization that awards the title. By contacting the issuer, investors can also learn if the advisor is currently authorized to use the title and determine if they have any disciplinary history. Investment advisers are required to provide to their customers a brochure about their employees. If an advisor lists a professional title, the brochure supplement must include an explanation of the minimum qualifications to gain and maintain the designation. FINRA offers a website to help consumers understand investment professional designations. It includes descriptions of the education and experience requirements for certain titles, as well as information about the organizations granting them.

--Written by Hal M. Bundrick for MainStreet

Thursday, September 19, 2013

10 Big Name Stocks Going Ex-Dividend Next Week (Sept. 16-20)

Ex-dividend dates are very important to dividend investors, since you must purchase a stock prior to its ex-dividend date in order to receive its upcoming dividend payout. For more information, check out Everything Investors Need to Know About Ex-Dividend Dates

Below we highlight 10 big-name stocks going ex-dividend for the week of September 16-20, 2013:

1. TupperwareTupperware

Tupperware (TUP) is set to trade ex-dividend on Monday, September 16. The kitchen products manufacturer offers a dividend yield of 2.94% based on Wednesday's closing price of $84.45 and the company's quarterly dividend payout of 62 cents per share. The stock is up 31.54% year-to-date. Dividend.com currently rates TUP as “Neutral” with a DARS™ rating of 3.4 stars out of 5 stars.

2. Xcel Energyxcel energy

Xcel Energy (XEL) is set to trade ex-dividend on Tuesday, September 17. The utility company offers a dividend yield of 4.05% based on Wednesday's closing price of $27.64 and the company's quarterly dividend payout of 28 cents per share. The stock is up 3.56% year-to-date. Dividend.com currently rates XEL as “Neutral” with a DARS™ rating of 3.4 stars out of 5 stars.

3. International Game TechnologyIGT

International Game Technology (IGT) is set to trade ex-dividend on Tuesday, September 17. The casino gaming equipment manufacturer offers a dividend yield of 2.00% based on Wednesday's closing price of $19.99 and the company's quarterly dividend payout of 10 cents per share. The stock is up 40.37% year-to-date. Dividend.com currently rates IGT as “Neutral” with a DARS™ rating of 3.3 stars out of 5 stars.

4. GoldcorpGOLDCORP

Goldcorp (GG) is set to trade ex-dividend on Tuesday, September 17. The gold mining company offers a dividend yield of 2.16% based on Wednesday's closing price of $27.77 and the company's monthly dividend payout of 5 cents per share. The stock is down 28.64% year-to-date. Dividend.com currently rates GG as “Neutral” with a DARS™ rating of 2.9 stars out of 5 stars.

5. Safewaysafeway

Safeway (SWY) is set to trade ex-dividend on Tuesday, September 17. The supermarket chain offers a dividend yield of 3.01% based on Wednesday's closing price of $26.60 and the company's quarterly dividend payout of 20 cents per share. The stock is up 47.43% year-to-date. Dividend.com currently rates SWY as “Neutral” with a DARS™ rating of 3.3 stars out of 5 stars.

6. Tiffany & Co.Tiffany's

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Tiffany & Co. (TIF) is set to trade ex-dividend on Wednesday, September 18. The fine jewelry maker offers a dividend yield of 1.72% based on Wednesday's closing price of $78.87 and the company's quarterly dividend payout of 34 cents per share. The stock is up 37.77% year-to-date. Dividend.com currently rates TIF as “Neutral” with a DARS™ rating of 3.4 stars out of 5 stars.

7. Advance Auto PartsAdvance Auto Parts

Advance Auto Parts (AAP) is set to trade ex-dividend on Wednesday, September 18. The specialty retailer of automotive parts offers a dividend yield of 0.29% based on Wednesday's closing price of $81.44 and the company's