Cash-strapped SEC to streamline exams for some RIAs

The Securities and Exchange Commission is streamlining its examination process for a group of about 1,000 advisers that have been registered for three years or more but never audited before.

The initiative, which comes against the backdrop of a budget crunch for the SEC, is the same type of narrowly focused exams the regulator starting using in 2012 when it began overseeing private funds, according to Jane Jarcho, the commission's national associate for investment adviser and investment company examinations.

The onsite exams home in on specific high-risk areas — such as marketing, portfolio management, conflicts of interest, safety of client assets and valuation — rather than a comprehensive review of the firm.

The SEC has been able to reduce the examination period to about 75 days, from 150.

The SEC will implement the streamlined exams for traditional advisers to try and conserve exam resources and whittle down its exam backlog: approximately 40% of the nearly 11,000 registered investment advisers it regulates have never been examined, according to Ms. Jarcho.

“We brought some efficiencies into the examination process that would allow us to take a bite out of that population,” she said.

The SEC highlighted never-before-examined advisers on its 2014 priorities list, which was released last week. The agency hopes to examine about half of the 1,000 targeted advisers over the next two years.

The effort comes as Congress is about to

approve a budget for fiscal 2014 that gives the SEC only $29 million of the $353 million funding increase that it sought, bringing the commission's total budget to $1.35 billion.

SEC Chairman Mary Jo White has made a priority of hiring 250 more investment-adviser examiners to augment the approximately 400 now working in the Office of Compliance Inspections and Examinations.

In a statement on Tuesday, the SEC said that its funding level for fiscal 2014 would “limit our ability to bolster our enforcement and examinations programs.”

While the SEC tries to get more money out of Congress, it is trying to put examiners in front of more advisers, even if they can't do full audits.

“We believe there's value in that exchange. It promotes compliance,” Ms. Jarcho said. "[It is] an attempt to reach out to more registrants even though we know our focus isn't as comprehensive as it would be if we had more resources,” she said.

The Investment Adviser Association has been encouraging the SEC to use the streamlined exams for registered investment adviser reviews.

“Given that OCIE is unlikely to get new resources, it is essential that they focus on increasing their productivity,” said Neil Simon, IAA vice president for g! overnment relations. “This initiative suggests that they will be able to increase their incidence of adviser examinations.”

One observer said that the SEC is listening to signals from Capitol Hill, where some Republicans have questioned whether it is paying too much attention to private-fund advisers who have registered as a result of a directive in the financial reform law.

“They are responding to political pressure from the Hill to look at the larger population of advisers who have never been examined,” said Duane Thompson, senior policy analyst at Fi360 Inc., a fiduciary-duty consulting firm.

But no matter how efficiently the SEC uses its resources, it can't overcome its budget shortfall, according to Marilyn Mohrman-Gillis, managing director of public policy and communications at the Certified Financial Planner Board of Standards Inc.

“Any effort the SEC can make to target its limited resources is important, but it's not going to fill the funding gap to increase the examinations of investment advisers to an appropriate level to protect investors,” she said.

The CFP Board, IAA and other groups are advocating for legislation introduced in the House that would allow the SEC to charge advisers user fees to fund examinations.

Top 10 Information Technology Stocks To Watch For 2015

With shares of Oracle (NASDAQ:ORCL) trading around $33, is ORCL an OUTPERFORM, WAIT AND SEE, or STAY AWAY? Let�� analyze the stock with the relevant sections of our CHEAT SHEET investing framework:

T = Trends for a Stock’s Movement

Oracle is a provider of enterprise software and computer hardware products and services. The company�� software, hardware systems, and services businesses develop, manufacture, markets, host, and support database and middleware software, applications software, and hardware systems, with the latter consisting primarily of computer server and storage products. It is organized into three businesses: software, hardware systems, and services. Information technology products and services are seeing increasing demand due to the surge of companies in developing economies.

Oracle reported its fiscal first quarter earnings Wednesday evening, beating expectations for earnings but falling short on revenue. Oracle is battling reduced global demand for IT and smaller companies that provide software online. Software licenses and cloud subscriptions rose 5 percent, which was better than last quarter�� disappointing 1 percent, although Oracle�� hardware sales fell 13 percent year-over-year.

Top 10 Information Technology Stocks To Watch For 2015: Cousins Properties Inc (CUZ)

Cousins Properties Incorporated (Cousins) is a real estate investment trust (REIT). Cousins Real Estate Corporation and its subsidiaries (CERC) is wholly owned by the Company. CERC owns, develops, and manages its own real estate portfolio and performs certain real estate related services for other parties. The Company operates in five segments: Office, Retail, Land, CPS Third-Party Management and Leasing and Other. The Office and Retail segments show the results for that product type. The Land segment includes results of operations for certain land holdings and single-family residential communities that are sold as developed lots to homebuilders. Fee income and related expenses for the third party-owned properties which are managed or leased by the Company�� CPS subsidiary are included in the CPS Third Party Management and Leasing segment. The Company also owns interests in residential development projects, undeveloped land tracts held for investment, and manages properties for third party owners. In August 2012, the Company acquired 2100 Ross Avenue, an 844,000-square-foot, Class-A office building located in the Arts District submarket of Dallas, Texas. In April 2013, Cousins Properties Inc (Cousins) acquired 816 Congress.

Office

As of December 31, 2011, the Company owned directly or through joint ventures 21 operating office properties totaling 7.8 million square feet. The Company developed most of the office properties it owns. During the year ended December 31, 2011, the Company�� activity in its office property portfolio was Execution of new or renewed existing leases consisting of approximately 1.0 million square feet, acquition of Promenade, a 775,000-square-foot office building in the midtown submarket of Atlanta, Georgia, and sale of one Georgia Center, a 376,000-square-foot office building in Atlanta, Georgia.

Retail

As of December 31, 2011, the Company owned directly or through joint ventures 17 operating retail centers totaling 4.8 million s! quare feet.

The Company developed most of the retail properties it owns. During 2011, the Company�� activities in its retail property portfolio included execution of new or renewed leases covering approximately 856,000 square feet; construction of Mahan Village, a 147,000 square foot shopping center, anchored by Publix and Academy Sports, in Tallahassee, Florida; construction of the first phase of Emory Point, a mixed-use project in Atlanta, Georgia, expected to consist of 443 apartment units and 80,000 square foot of retail space, in a joint venture with Gables Residential.

Third Party Management and Other Fee Income

As of December 31, 2011, the Company managed and/or leased 12.7 million square feet of office and retail properties for third party owners. In addition, the Company has contracts to provide development and construction management services for third party owners.

Other Investments

As of December 31, 2011, the Company owned directly or through joint ventures, 22 residential development projects and residential and commercial undeveloped land, the Company�� share of which was approximately 5,000 acres. During 2011, the Company sold the remaining five multi-family units available for sale at the 10 Terminus Place condominium project; sold the Jefferson Mill Business Park Building A industrial building in suburban Atlanta, Georgia; sold the King Mill Distribution Park Building 3 industrial building in suburban Atlanta, Georgia; sold the Lakeside Ranch Business Park Building 20 industrial building and related undeveloped land in Dallas, Texas; sold approximately 43 acres of land and sold 482 residential lots.

Advisors' Opinion:

• [By Dividends4Life]

  This week a few companies answered the call and rewarded their shareholders with higher cash dividends:
  
  Consolidated Edison Inc. (ED) engages in regulated electric, gas, and steam delivery businesses. January 16th the company increased its quarterly dividend 2.4% to $0.63 per share. The dividend is payable March 15, 2014, to stockholders of record on February 12, 2014. The yield based on the new payout is 4.7%.
  
  Cousins Properties Incorporated (CUZ), a real estate investment trust (REIT), owns, develops, and manages real estate portfolio, as well as performs certain real estate-related services. January 16th the company increased its quarterly dividend 66.7% to $0.075 per share. The dividend is payable February 24, 2014, to stockholders of record on February 10, 2014. The yield based on the new payout is 2.8%.
  
  Wisconsin Energy Corporation (WEC) generates and distributes electric energy, as well as distributes natural gas. The company operates in two segments, Utility Energy and Non-Utility Energy. January 16th the company increased its quarterly dividend 2% to $0.3900 per share. The dividend is payable March 1, 2014, to stockholders of record on February 14, 2014. The yield based on the new payout is 3.8%.
  
  BlackRock Inc. (BLK) is a publicly owned investment manager. The firm primarily provides its services to institutional, intermediary, and individual investors. January 16th the company increased its quarterly dividend 14.9% to $1.93 per share. The dividend is payable March 24, 2014, to stockholders of record on March 7, 2014. The yield based on the new payout is 2.4%.
  
  ONEOK Inc. (OKE) operates as a diversified energy company in the United States. January 15th the company increased its quarterly dividend 5.3% to $0.40 per share. The dividend is payable February 18, 2014, to stockholders of record on February 10, 2014. The yield based on the new payout is 2.5%.
  
  Omega Healthcare Investors Inc. (OHI) is a real es

Top 10 Information Technology Stocks To Watch For 2015: Banco De Chile(BCH)

Banco de Chile, together with its subsidiaries, provides personal and business baking products and services in Chile and the United States. Its personal banking product line comprises checking accounts, time deposits, money market accounts, demand deposits, now accounts, and prime now accounts. The company also offers lines of credit; credit card products, such as Travel Club, Global Pass, net.card, and PaySafe credit cards; and Internet banking services. Its business banking products and services include financial management products, such as checking accounts, foreign currency accounts, money market accounts, and prime now accounts, as well as a line of credit. In addition, the company provides business Visa, MasterCard, and Travel Club credit cards; and foreign trade services, as well as treasury banking services. Further, it offers various services, including securities brokerage, mutual fund management, factoring, insurance brokerage, financial advisory, and securitiz ation. As of December 31, 2009, the company operated a network of 246 retail branches and 154 Banco CrediChile branches, as well as a network of 1,588 automated teller machines and 415 self-consultation terminals. The company was founded in 1893 and is headquartered in Santiago, Chile.

Best Heal Care Stocks To Buy Right Now: Lafe Corporation Limited (L05.SI)

Lafe Corporation Limited, an investment holding company, primarily engages in property development, property investment, and property related service businesses. The company is involved in the development, investment, sale, and leasing of real estate properties. It also provides property appraisal, property management, architectural consultancy, building consultancy, corporate administration, real estate agency, security guard, and property consultancy services. In addition, the company holds trademarks It has operations in Singapore, Hong Kong, and the People�s Republic of China. The company was incorporated in 1999 and is based in Singapore. Lafe Corporation Limited is a subsidiary of Clarendon Investments Capital Limited.

Top 10 Information Technology Stocks To Watch For 2015: PIMCO New York Municipal Income Fund(PNF)

PIMCO New York Municipal Income Fund is a mutual fund launched and managed by Allianz Global Investors Fund Management LLC. The fund is co-managed by Pacific Investment Management Company LLC. It operates as a nondiversified, closed-end management investment company. The fund invests primarily in municipal securities. The fund?s investment portfolio includes investments in hospital, water and sewer, tobacco, state and local general obligations, education, lease, tax, and power sectors. PIMCO New York Municipal Income Fund was formed in 2001 and is domiciled in United States.

Top 10 Information Technology Stocks To Watch For 2015: WESCO International Inc. (WCC)

WESCO International, Inc. engages in the distribution of electrical, industrial, and communications maintenance, repair, and operating (MRO) products; and original equipment manufacturers products and construction materials. It also provides supply chain management and logistics services. The company offers general and industrial supplies, such as wiring devices, fuses, terminals, connectors, boxes, enclosures, fittings, lugs, terminations, tapes, splicing and marking equipment, tools and testers, safety and security, personal protection, abrasives, cutting tools, consumables, fasteners, janitorial, and other MRO supplies. It also provides wires, cables, raceway, and metallic and non-metallic conduits; and communications products, such as structured cabling systems, broadband products, low voltage specialty systems, specialty wire and cable products, equipment racks and cabinets, access controls, alarms, cameras, and paging and voice solutions. In addition, the company off ers power distribution equipment, such as circuit breakers, transformers, switchboards, panel boards, metering products, and busway products; lighting and controls, including lamps, fixtures, ballasts, and lighting control products; and motor control devices, drives, surge and power protection, relays, timers, pushbuttons, operator interfaces, switches, sensors, and interconnects. Further, it provides value added services in the areas of construction, e-business, energy, engineering services, green and sustainability, production support, safety and security, supply chain optimization, training, and working capital. The company serves industrial and commercial businesses, contractors, governmental agencies, institutions, telecommunications providers, and utilities. It operates in North America and internationally. WESCO International, Inc. was founded in 1922 and is headquartered in Pittsburgh, Pennsylvania.

Advisors' Opinion:

• [By Rich Smith]

  Instead, the winners who will compete among themselves to fulfill the $45 million firm-fixed-price, multiple-award, indefinite-delivery/indefinite-quantity contract include privately held Bluewater Communications Group LLC, small-cap Globecomm Systems (NASDAQ: GCOM  ) , and TVC Communications LLC, of Annville, Penn., a small subsidiary of larger electronics distributor WESCO International (NYSE: WCC  ) . All three will now be competing against each other to win the Pentagon's business on individual task orders for the Cisco and other HD equipment on order.

• [By Ben Levisohn]

  Citigroup’s Deane Dray and team took a long hard look at the U.S. economy and the their ratings on diversified industrial like United Technologies (UTX), Honeywell (HON), Tyco (TYC) and Wesco International (WCC) and decided it was time to makes some changes.

• [By Seth Jayson]

  WESCO International (NYSE: WCC  ) reported earnings on April 18. Here are the numbers you need to know.

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

Top 10 Information Technology Stocks To Watch For 2015: Waste Management Inc.(WM)

Waste Management, Inc., through its subsidiaries, provides waste management services to residential, commercial, industrial, and municipal customers in North America. It offers collection, transfer, recycling, and disposal services. The company also owns, develops, and operates waste-to-energy and landfill gas-to-energy facilities in the United States. Its collection services involves in picking up and transporting waste and recyclable materials from where it was generated to a transfer station, material recovery facility, or disposal site; and recycling operations include collection and materials processing, plastics materials recycling, and commodities recycling. In addition, it provides recycling brokerage, which includes managing the marketing of recyclable materials for third parties; and electronic recycling services, such as collection, sorting, and disassembling of discarded computers, communications equipment, and other electronic equipment. Further, the company e ngages in renting and servicing portable restroom facilities to municipalities and commercial customers under the Port-o-Let name; and involves in landfill gas-to-energy operations comprising recovering and processing the methane gas produced naturally by landfills into a renewable energy source, as well as provides street and parking lot sweeping services. Additionally, it offers portable self-storage, fluorescent lamp recycling, and medical waste services for healthcare facilities, pharmacies, and individuals, as well as provides services on behalf of third parties to construct waste facilities. The company was formerly known as USA Waste Services, Inc. and changed its name to Waste Management, Inc. in 1998. Waste Management, Inc. was incorporated in 1987 and is based in Houston, Texas.

Advisors' Opinion:

• [By Sean Williams]

  Today, I plan to introduce the first of 10 selections to the Basic Needs Portfolio: Waste Management (NYSE: WM  ) .

  How it fits in with our theme
  Waste Management fits the theme of the portfolio in actually more ways than one. Obviously, trash collection is a basic necessity that's needed regardless of whether the economy is booming or in a recession. The amount of trash we generate may fluctuate slightly based on the health of the economy, but hauling it away remains a basic need that creates consistent cash flow for Waste Management.

Top 10 Information Technology Stocks To Watch For 2015: Transmetro Corporation Ltd (TCO.AX)

Transmetro Corporation Limited, through its subsidiaries, engages in the operation of hotels, inns, serviced apartments, and theme pubs in Australia. Its fully-serviced hotels include restaurants, meeting rooms, business facilities, and conference and functions rooms. The company�s apartments provide longer-term stays for corporate travelers, and leisure guests; and inns offer accommodation with facilities, such as on-site parking, swimming pools, and restaurants. Its theme pubs provide beverages, food, and entertainment services. The company offers a national accommodation on network of 14 properties with approximately 1,000 rooms. Transmetro Corporation Limited operates under the brand names of Metro Hotels, Metro Apartments, Metro Inns, Paddy Maguires, and Aspire Hotels. Its clients comprise middle management business travelers, sporting groups and budget travelers, and leisure guests from Australian and international markets. The company was founded in 1976 and is hea dquartered in Sydney, Australia.

Top 10 Information Technology Stocks To Watch For 2015: Electronics for Imaging Inc.(EFII)

Electronics For Imaging, Inc. provides color digital print controllers, digital inkjet printers, and business process automation solutions. The company?s Fiery products consist of stand-alone print controllers and servers connected to digital copiers and other peripheral devices; embedded and design-licensed solutions used in digital copiers and multi-functional devices; optional software integrated into controller solutions that include Fiery Central and MicroPress; Entrac, a self-service and payment solution; PrintMe, a mobile printing application; and stand-alone software-based solutions, such as proofing and scanning solutions, including ColorProof XF, Fiery XF, ColorProof eXpress, and Xflow. It also offers industrial inkjet products, including VUTEk super-wide format digital industrial inkjet printers and inks used by billboard graphics printers, commercial photo labs, sign shops, graphic screen printers, specialty commercial printers, and digital graphics providers; Rastek hybrid and flatbed entry level production UV wide format inkjet printers; and Jetrion label and packaging digital inkjet printers, integration solutions, and specialty digital UV inks for primary and secondary label applications, and industrial label or flexible packaging markets. In addition, the company provides advanced professional print software products consisting of print production workflow and management information software, including Monarch, PSI, Logic, PrintSmith, and PrintFlow; Pace, a cloud-based business process automation software; and cloud-based order entry and order management systems, which comprise Digital StoreFront, PrinterSite, and PrintSmith Site. Electronics For Imaging, Inc. offers its products through sales force and distribution arrangements primarily in the Americas, Europe, the Middle East, Africa, and Japan. The company was founded in 1988 and is headquartered in Foster City, California.

Advisors' Opinion:

• [By Seth Jayson]

  Electronics for Imaging (Nasdaq: EFII  ) reported earnings on April 18. Here are the numbers you need to know.

  The 10-second takeaway
  For the quarter ended March 31 (Q1), Electronics for Imaging beat expectations on revenues and beat expectations on earnings per share.

• [By Brian Pacampara]

  What: Shares of digital printing technologist Electronics for Imaging (NASDAQ: EFII  ) popped 12% today after its quarterly results topped�Wall Street expectations.

Top 10 Information Technology Stocks To Watch For 2015: Otoc Ltd (OTC.AX)

OTOC Limited through its wholly owned subsidiaries OTOC Group Pty Ltd and Whelans (WA) Pty Ltd (Whelans) provides construction and turnkey camp/ village installations, environmental, surveying, mapping, town planning, engineering, project delivery and specialist consulting services across the infrastructure, resources and energy sectors. The Company operates in two segments: OTOC Operations and Whelans Consulting Operations. OTOC Operations (OTOC) provides camp/village installations to the Western Australian resources and infrastructure sector. Whelans Consulting Operations (Whelans) provides surveying, mapping and town planning services throughout Western Australian. In July 2013, the Company announced that its wholly owned subsidiary OTOC Australia has expanded its Facilities Division through the acquisition of full ownership of a 700 person commercial kitchen/diner facility.

Top 10 Information Technology Stocks To Watch For 2015: SVB Financial Group(SIVB)

SVB Financial Group, a diversified financial services company, provides various banking and financial products and services. The company offers deposit products, such as traditional deposit and checking accounts, certificates of deposit, money market accounts, and sweep accounts, as well as lockbox and merchant services; and lending products and services, including traditional term loans, equipment loans, asset-based loans, revolving lines of credit, accounts-receivable-based lines of credits, capital call lines of credits, and credit cards. It also provides cash management products and services comprising wire transfer and automated clearing house payment services, collection services, disbursement services, electronic funds transfers, and online banking services. In addition, the company offers foreign exchange services; letters of credit, including export, import, and standby letters of credit; investment services and solutions; brokerage; asset management; investment a dvisory services, such as outsourced treasury services; and non-banking products and services, such as funds management, venture capital/private equity investment, and equity valuation services. Further, it provides private banking services comprising mortgages, home equity lines of credit, restricted stock purchase loans, and other secured and unsecured lending services. As of March 09, 2012, the company operated 26 offices in the United States and 7 offices internationally. It serves customers in the technology, venture capital/private equity, life science, wine, and clean tech industries. The company was founded in 1982 and is headquartered in Santa Clara, California.

Advisors' Opinion:

• [By John Maxfield]

  Given that you clicked on this article, it seems safe to assume you either own stock in SVB Financial (NASDAQ: SIVB  ) or are considering buying shares in the near future. If so, then you've come to the right place. The table below reveals the nine most critical numbers that investors need to know about SVB Financial stock before deciding whether to buy, sell, or hold it.

Top 10 Information Technology Stocks To Watch For 2015: Concord Medical Services Holdings Limited (CCM)

Concord Medical Services Holdings Limited, together with its subsidiaries, operates a network of radiotherapy and diagnostic imaging centers in the People�s Republic of China. The company�s services comprise linear accelerators external beam radiotherapy, gamma knife radiosurgery, head gamma knife systems, body gamma knife systems, proton beam therapy, diagnostic imaging, and other treatment and diagnostic modalities. It offers clinical support services; develops treatment protocols for doctors; and organizes joint diagnosis between doctors in its network and clinical research. The company also operates a specialty cancer hospital, as well as leases medical and diagnostic equipment. As of March 31, 2011, it operated a network of 121 centers with 68 hospital partners that cover 46 cities and 24 provinces, and administrative regions in China. The company was founded in 1996 and is headquartered in Beijing, the People�s Republic of China.

Advisors' Opinion:

• [By John Udovich]

  China is set to ease the one child policy, something that could benefit Chinese stocks in general but be especially beneficial to insurance stocks like China Life Insurance Company Ltd (NYSE: LFC) and CNinsure Inc (NASDAQ: CISG) plus health care stocks like Mindray Medical International Ltd�(NYSE: MR) and Concord Medical Services Hldg Ltd (NYSE: CCM). First, let�� be clear that China is NOT abolishing the one child policy as the changes will merely�allow married couples to have two children if one spouse is an only child plus it will be up to China�� 34 province-level administrations to revise�their laws and put the new policy into effect. Moreover, China�� family-planning bureaucracy employs more than 500,000 full-time workers and six million part-time workers all the way down to the village level to�collect billions of dollars in fines and these bureaucrats have fought for years against policy changes���meaning they could throw up roadblocks if not placated. With that said, the insurance and health care sectors are two sectors with publicly Chinese stocks that look set to�take advantage of the coming changes.

Top 10 Information Technology Stocks To Watch For 2015: Eaglewood Energy Inc(EWD.V)

Eaglewood Energy Inc. operates as a junior oil and gas company. The company engages in the exploration and development of its three petroleum prospecting licenses located in Papua New Guinea. It focuses on hydrocarbon exploration. The company was formerly known as Surge Resources Inc. and changed its name to Eaglewood Energy Inc. in October 2007. Eaglewood Energy Inc. is headquartered in Calgary, Canada.

John Mauldin's Outside the Box - World Money Analyst Update on Emerging Markets

Top Consumer Stocks For 2015

World Money Analyst Update on Emerging Markets

John Mauldin

February 13, 2014

You know that I roam the world (mostly by letting my fingers do the walking) in search of great pieces for Outside the Box. But for the next few weeks, on Thursdays, I'll be sending you special editions of Outside the Box that highlight the excellent research that is produced by our own Mauldin Economics writers and analysts.

World Money Analyst is a perfect example. Led by Managing Editor Kevin Brekke, WMA features research from analysts and money managers from around the globe. Today, Kevin interviews Ankur Shah, one of our key WMA contributors, who is based in Dubai.

Their conversation focuses on the very hot topic of the prospects for emerging markets, now that the Federal Reserve is tapering. They examine the currency issues and inflation implications, which are certainly drastic; but Ankur makes a very interesting case for taking a patient, longer-term view of the growth potential of emerging markets.

I spent most of a day with Ankur last month in Dubai, where he was kind enough to show me the city and a few favorite spots. Dubai is a great base for him to travel all over Asia and the Middle East searching out ideas and companies. He has roots in both the trading and research aspects of the business and specializes in Southeast Asia. He is the right mix of skeptical and enthusiastic, and I am pleased that we have him on the team.

Continue reading here.

About the author:Grass Hopper

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Are Wireless Companies Profiting From Sexting?

The images generated from the overall sexting trend tend to make most parents cringe. However, as we all know, teenagers are not the only people sexting with one another. Former U.S. Representative and recent New York City mayoral candidate Anthony Weiner was forced to resign from office over a sexting scandal. Numerous Hollywood stars and Rap music artists have been known to resort to sexting. Moral considerations put aside, at 24/7 Wall Street, we want to know if the top wireless companies are making money off this trend?

We consulted data from Pew Research, and the findings were somewhat surprising. Especially when the data was directly related to adults who are sexting.

1) 9% of adult cell phone owners have sent a sext of themselves to someone else. That's up from 6% of cell owners in 2012. A 50% increase in this kind of traffic.

2) 20% of cell phone owners say they have received a sext of someone else they know on their phone. That's up from 15% in 2012, a 33% increase.

Given this increase in sexting, surely the wireless carriers are making a profit on this trend? While text messaging is still on the rise in the U.S, the growth has been steadily slowing. However it is estimated that texting, which is known in the wireless business as short message service or SMS, may provide as much as 12% of service revenues for the major U.S. operators.

For its wireless business in the fourth quarter of 2013, AT&T Inc. (NYSE:T) saw operating revenues increase by 4.5 percent year-over-year to $18.44 billion, with a 16 percent bump in data revenues making up a large portion of that growth. Texting and sexting costs fall into the data revenue category. Verizon Communications Inc. (NYSE:VZ) showed an 8.0% year-over-year increase in service revenues in the fourth quarter of 2013. That was a 7.5% year-over-year increase in retail service revenues.

While sexting may or may not remain a hip trend, and texting is actually on the decline, one thing is for sure. The large wireless carriers are making big money off this kind of activity. Granted, it's not the kind of data they want to break out in great detail, especially the sexting part, but the numbers don't lie. Even with texting on the decline, the sexting numbers are increasing. Now if we can just get a big carrier Investors relations representative to break out those darn sexting numbers.

Hot International Stocks To Own Right Now

Source: Thinkstock

Mattel: Bad News Buy?

Despite bad news for Barbie sales, Jack Adamo continues to see long-term value at this leading toy maker. Here's the latest from his Insiders Plus newsletter.

Mattel Inc. (MAT) reported Q4 net income of $1.07 per share, compared to last year's $0.87, but there were one-time items that made the comparisons seem better than they were.

Net sales decreased 6%. North American sales plummeted 10%, while international sales were flat.

For the year, the company reported net income of $2.58 per share, compared to last year's $2.22 per share, but, again, there were a lot of items. Net sales increased 1%. Full year gross sales were down 2% in North America and up 5% internationally.

Top Cheap Companies For 2015

Cash flow was also disappointing, primarily driven by higher working capital usage, partially offset by higher net income. For the year, net cash flows, from operating activities, were approximately $698 million, down from $1.28 billion in 2012.

On the face of it, I'm not too put off by these numbers. The toy business is inherently lumpy, due to the timing of new products, especially film-related toys.

Moreover, the economy is weak and retail, as a whole, had a disappointing Christmas season, except for the luxury retailers.

Mattel is one of the best companies in its industry and it's an industry that is, somewhat, more recession-resistant than the rest of the economy, so I don't expect results to stay down for too long.

That's not to say the stock won't suffer periodically; the public doesn't think-through the lumpiness issue. But I would expect Mattel to significantly outperform the market in the decade ahead, as it has in the past.

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Five-Year lows: Frank’s International NV, Eldorado Gold Corp, TransAlta Corporation, CVR Refining LP

According to GuruFocus list of five-year lows, these Guru stocks have reached their five-year lows: Frank's International NV, Eldorado Gold Corp., TransAlta Corporation and CVR Refining LP.

Frank's International NV (FI) Reached the Five-Year Low of $26.39

The prices of Frank's International NV (FI) shares have declined to close to the five-year low of $26.39, which is 29.4% off the five-year high of $32.70. Frank's International NV is owned by eight Gurus we are tracking. Among them, eight have added to their positions during the past quarter. One one reduced their positions. Frank's International NV provides tubular services to both offshore and onshore exploration and production companies. Frank's International NV has a market cap of $4.06 billion; its shares were traded at around $26.39 with a P/E ratio of 17.80 and P/S ratio of 3.79. The dividend yield of Frank's International NV stocks is 0.28%.

Frank's International NV reported net sales of $270.1 million and net income from continuing operations of $59.5 million for their 2013 third financial quarter.

Five GuruFocus Gurus, John Burbank, John Keeley, Ron Baron, George Soros and PRIMECAP Management, all initiated their position in Frank's International NV.

See Remarks Mark Gerard Margavio, See Remarks, 10% Owner Donald K. Mosing¸ Brian D. Baird, Vice President of Engineering Charles Michael Webre and Director Sheldon R. Erikson bought 83,000 shares of FI stock in August and November.

Eldorado Gold Corp. (EGO) Reached the Five-Year Low of $5.66

The prices of Eldorado Gold Corp. (EGO) shares have declined to close to the five-year low of $5.66, which is 75.4% off the five-year high of $22.12. Eldorado Gold Corp. is owned by six Gurus we are tracking. Among them, five have added to their positions during the past quarter. Two reduced their positions. Eldorado Gold Corp. is a gold exploration, development, mining and production company. Eldorado Gold Corp. has a market cap of $4.04 billion; its sh! ares were traded at around $5.66 with a P/E ratio of 42.60 and P/S ratio of 6.65. The dividend yield of Eldorado Gold Corp. stocks is 2.09%. Eldorado Gold Corp. had an annual average earnings growth of 15.50% over the past five years.

Eldorado Gold Corp. announced their 2013 third quarter financial results. The company reported revenues of $287.3 million and net earnings per diluted share of $0.05.

Third Avenue Management, who owns 301,600 shares, and Jean-Marie Eveillard, who owns 6,443,257 shares, both increased their positions in EGO. Mario Gabelli and Ray Dalio kept their positions unchanged.

TransAlta Corporation (TAC) Reached the Five-Year Low of $12.78

The prices of TransAlta Corporation (TAC) shares have declined to close to the five-year low of $12.78, which is 47.9% off the five-year high of $23.30. TransAlta Corp. is owned by one Guru we are tracking. Among them, zero have added to their positions during the past quarter. One reduced their position. TransAlta Corp. was incorporated under the Canada Business Corporations Act in March 1985. TransAlta Corp. has a market cap of $3.43 billion; its shares were traded at around $12.78 with a P/E ratio of 96.80 and P/S ratio of 1.46. The dividend yield of TransAlta Corp. stocks is 8.71%. TransAlta Corp. had an annual average earnings growth of 0.20% over the past 10 years.

TransAlta Corporation reported their 2013 third quarter financial results with revenues of $623 million and net loss of $9 million.

CVR Refining LP (CVRR) Reached the Five-Year Low of $22.11

The prices of CVR Refining LP (CVRR) shares have declined to close to the five-year low of $22.11, which is 42.2% off the five-year high of $35.98. CVR Refining LP is owned by two Gurus we are tracking. Among them, zero have added to their positions during the past quarter. Zero reduced their positions. CVR Refining LP is an independent downstream energy limited partnership with refining and related logistics assets that operates in the mid-continent r! egion. CV! R Refining LP has a market cap of $3.25 billion; its shares were traded at around $22.11 with a P/E ratio of 5.20 and P/S ratio of 0.52. The dividend yield of CVR Refining LP stocks is 14.65%.

CVR Refining LP announced revenues of $1.9 billion and net income of $86.0 million for their 2013 third quarter financial results.

Carl Icahn, who owns 6 million shares as of Sept. 30, 2013, kept his position in CVR Refining LP unchanged.

SVP, General Counsel and Secretary Edmund S, Gross bought 8,000 shares of CVRR stock on 08/06/2013 at the average price of $26.41. Director Keith Cozza sold 10,000 shares of CVRR stock on 09/13/2013 at the average price of $26.34.

Also check out: Carl Icahn Undervalued Stocks Carl Icahn Top Growth Companies Carl Icahn High Yield stocks, and Stocks that Carl Icahn keeps buying John Burbank Undervalued Stocks John Burbank Top Growth Companies John Burbank High Yield stocks, and Stocks that John Burbank keeps buying

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FI STOCK PRICE CHART

NSA spying hurts business of large U.S. hardwar…

SAN FRANCISCO — With evidence mounting that NSA spying has damaged the business of some of the largest U.S. technology companies, the question now is how long it will take them to win back the trust of overseas customers.

Without any changes in U.S. law that restrict the agency's ability to use tech for surveillance, the answer may be "never."

That may be the case in China, where IBM, Microsoft, Hewlett-Packard and, most notably, Cisco Systems have reported substantial drops in sales since the NSA surveillance program came to light.

Yet sales are falling for several of these giants not only in China but in other parts of Asia and in other developing economies, too, and the trend may have as much to do with privacy concerns as with the pace of global economic growth.

Cisco, whose switches and routers lie at the core of Internet traffic around the globe, saw its top five emerging markets post year-over-year order declines between 18% and 30% in its most recent quarter.

"It was pretty brutal," Cisco CEO John Chambers said on a conference call last month.

Chambers was hesitant to blame security concerns for the company's performance worldwide.

John Shinal, technology columnist for USA TODAY.(Photo: USA TODAY)

He called the impact on the company's total emerging markets business "fairly nominal," and pointed to macroeconomic uncertainty and the introduction of new products that overseas customers are cautious about investing in.

"I do think we're seeing a slowdown in their decision-making, and in their economies," Chamber said on the call. "I do not think (privacy) is the major factor across all emerging markets. I do think it is a factor, however, in China."

It's true Cisco th! is year has been rolling out new, expensive switching and routing platforms, trying to sell expensive gear to foreign phone companies, large businesses and governments just as the NSA revelations were disclosed.

The technology transition is proving to be a tough sell for the company, because it's hard to alleviate customers' security concerns if they believe Cisco's gear has a back door that enables NSA snooping — especially when one of Cisco's selling points has been that its equipment is secure.

While Chambers was careful to parse his words regarding the impact of those concerns, another Cisco executive on the conference call last month went a bit further.

"The issue has caused a number of customers to pause and re-evaluate," said Robert Lloyd, the company's president and head of sales, adding "it's not having a material impact, but it's certainly affecting decision-making" in emerging markets, which comprise a fifth of the company's sales.

Given Cisco's emerging market order growth went from 13% for the quarter ended in April to 12% in the most recent period — post NSA-flap — it appears privacy concerns are having a material impact.

But it's not just Cisco that's having trouble in emerging markets like China.

IBM last month reported a 22% decline in revenue from China, which contributed to a 4% drop in the company's quarterly profit.

HP said all of its businesses in China had year-over-year sales drops last quarter — except in networking gear, in which it competes against Cisco. HP posted a 3% rise in sales.

All this happened as China's economy grew almost 8% in the third quarter.

China may prove to be an exceptional case, as the country views the U.S. as a strategic rival and has punished American companies before for various reasons.

Earlier this year, for example, Apple's iPhone sales growth there did a reversal after the company was publicly chastised in China for its warranty practices.

Cisco has a long and complicated his! tory with! the country, which it has accused of allowing a rival, Huawei Technologies, to steal Cisco's intellectual property.

Still, if China's new rulers believe U.S. hardware and software makers are helping a strategic rival to spy on it, U.S. companies will likely see sales there continue to fall.

And if the same concerns grip other overseas customers and governments, American tech executives may have a tough time convincing them otherwise.

John Shinal has covered tech and financial markets for 15 years at Bloomberg, BusinessWeek, the San Francisco Chronicle, Dow Jones MarketWatch, Wall Street Journal Digital Network and others

Stocks Triumph for a Third Month While Bullion Tumbles

Global stocks beat all assets for a third month in November, the longest winning streak since 2009, on signs that economic growth is accelerating. Commodities extended declines as gold fell the most since June.

The MSCI All-Country World Index of equities in 45 markets rose 1.5 percent including dividends and the Standard & Poor's 500 Index reached a record as China pledged to expand economic freedoms, the European Central Bank cut interest rates and speculation increased the Federal Reserve will delay reducing stimulus. The U.S. Dollar Index advanced 0.6 percent and the S&P GSCI Total Return Index of 24 commodities fell 0.8 percent. Bonds of all types lost 0.16 percent on average, according to Bank of America Merrill Lynch's Global Broad Market Index.

"The story is still around the combination of easy monetary policies and expectations of growth into 2014," said Bill O'Neill, the London-based head of U.K. Chief Investment Office Research at UBS Wealth Management, which oversees $1.9 trillion of assets. "There is this belief that growth is coming towards us. Even if it's not imminent, it's on the horizon."

With the combined market value of global equities up by about $5.9 trillion in the past three months, individual investors are just now coming back to stock markets. They have sent about $30 billion to managers in 2013, which would make this year the first since 2006 that equity funds have seen net inflows, after almost $400 billion was withdrawn in the previous four years, according to data compiled by the Washington-based Investment Companies Institute.

Second Best

While the average of 19 forecasts compiled by Bloomberg showing the S&P 500 will fall 4 percent to 1,733, December has been the second-best month for U.S. equity returns, according to data compiled by Bloomberg that starts in 1928.

The average return for the month is 1.5 percent, more than twice the overall monthly mean of 0.6 percent. That would put the S&P 500 index at 1,832.9 by the end of the year, giving 2013 the best annual return since 1997.

The MSCI All-Country World Index (SPX) reached its highest since January 2008 on Nov. 29. The gauge rose 18 percent this year, heading for its best annual return since 2009. The Nasdaq Composite Index closed at the highest level in 13 years on Nov. 29 and Japan's Nikkei 225 Stock Average (NKY) advanced to the most since 2007 the previous day. The rally pushed U.S. equity valuations close to their richest since the end of 2009, with the S&P 500 trading for 16.3 times its companies' projected earnings, data compiled by Bloomberg show.

'More Healthy'

"The economy looks much, much more healthy," said Michael O'Sullivan, the chief investment officer for the U.K. and Eastern Europe, Middle East and Africa at Credit Suisse Private Banking & Wealth Management, which oversees about 1.27 trillion Swiss francs ($1.4 trillion). "The Fed is moving towards taking some liquidity out of the market and the ECB is trying to be as accommodative as it possibly can."

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Minutes of the Fed's last meeting showed policy makers expected ongoing improvement in the labor market to "warrant trimming the pace of purchases in coming months." Vice Chairman Janet Yellen, nominated as Chairman Ben S. Bernanke's successor, signaled last month the economy is not yet strong enough to warrant cuts in the $85 billion monthly bond purchases, which enhance the central bank's policy of easy credit.

As of Nov. 19, four of five investors, traders and analysts who are Bloomberg subscribers expected the Fed to start buying fewer bonds in March or later, with just 5 percent looking for a move this month, the Bloomberg Global Poll found.

Interest Rates

The European Central Bank cut its benchmark interest rate by a quarter point to 0.25 percent on Nov. 7. Governing Council member Ardo Hansson said Nov. 25 the bank stands ready to reduce borrowing costs further and is technically prepared to make its deposit rate negative.

Silver was the biggest loser in commodities, dropping 8.4 percent to $20.033 an ounce in New York. It's dropped 35 percent this year. Gold retreated 5.5 percent to $1,250.40 an ounce. The metal slumped 26 percent since the start of January, on track for its first annual loss since 2000, as some investors lost faith in bullion as a store of value. Goldman Sachs Group Inc. expects gold to trade at $1,110 in 12 months, compared with $1,237.40 at 8:06 a.m. in New York.

Industrial metals also were among the biggest losers, with copper declining 2.7 percent to $7,055 a metric ton and nickel plunging 7.5 percent to $13,515 a ton in London. There will be gluts in aluminum, copper, nickel and zinc this year or next, according to Barclays Plc. The LMEX Index of six metals fell 12 percent since the start of January. Barclays says copper will average $6,500 in the fourth quarter next year.

Energy Needs

West Texas Intermediate, the benchmark U.S. crude grade, dropped 3.8 percent to $92.72 a barrel in New York trading. The U.S. is meeting 86 percent of its own energy needs, the most since 1986, Energy Department data show. It will overtake Russia and Saudi Arabia as the world's largest oil producer by 2015, the Paris-based International Energy Agency estimates.

Brent crude, the European benchmark, advanced 0.8 percent to $109.69 a barrel in London. Prices are little changed since Iran and world powers agreed to loosen economic sanctions in return for limits on the nation's atomic activities on Nov. 27, a sign traders are skeptical it will lead to more supply from what was once OPEC's second-biggest producer. Goldman is predicting a price of $105 in 12 months.

Annual Retreat

Wheat rose 0.2 percent to $6.6875 a bushel in Chicago, leaving this year's decline at 14 percent. Corn dropped 0.9 percent to $4.245 a bushel, for an annual retreat of 39 percent. Farmers around the world will reap the biggest-ever harvests for both crops, the U.S. Department of Agriculture estimates.

Bank of America Merrill Lynch's Global Broad Market Index, tracking debt securities valued at about $45 trillion, rose 0.3 percent this year.

U.S. Treasuries depreciated 0.4 percent in November, after rallying the previous two months. Yields on 10-year U.S. government debt may climb to 3.1 percent by the middle of next year, from 2.7 percent, according to the median estimate of 64 economists surveyed by Bloomberg News.

"We're going to see a lot of months where the Fed is the dominant story," said John Rutledge, chief investment strategist at Safanad, the New York-based investment firm. "The tapering story worries people from the point of view of whether the Fed is there to sop up Treasury issues."

High Yield

High-yield (BHYC) bonds rose 0.4 percent last month after gaining 2.2 percent in October, according to the Bloomberg Global High Yield Corporate Bond Index. Speculative-grade debt is rated below Baa3 by Moody's Investors Service and BBB- by S&P.

Portugal's bonds were the best performers in November among the 26 sovereign markets tracked by Bloomberg and the European Federation of Financial Analysts Societies, rising 1.9 percent. Italy's were second with a 0.9 percent gain. Greece's debt lost the most with a 1.8 percent decline.

The 17-nation euro rose 0.1 percent versus the greenback and Japan's yen fell 4 percent. Europe's currency is forecast to weaken to $1.30 against the dollar by the middle of next year, from $1.3591, according to the median estimate of economists surveyed by Bloomberg. Japan's is estimated to weaken to 104 from 102.44.

Developing-country bonds lost 1.2 percent in November after gaining in the previous two months, according to the Bloomberg USD Emerging Market Composite Bond Index. (BEM) The MSCI Emerging Markets Index fell 1.6 percent, the first decline since August and taking this year's drop to 3.5 percent.

Coastal Towns

The Philippine Stock Exchange PSEi Index posted the biggest loss among emerging nations in Asia, Europe and Africa monitored by Bloomberg, dropping 5.7 percent after Typhoon Haiyan swept away coastal towns on Nov. 8, killing more than 5,000 and displacing 3.4 million others.

"I have not seen any appetite to invest into EM," Benoit Anne, the head of emerging-markets strategy at Societe Generale SA in London, wrote in an e-mail. "Fear of the Fed is still prevailing, and seasonality turning negative, with investors reluctant to take on risk as year-end looms."

The rupiah led losses in developing nations, sliding 5.8 percent against the dollar, amid concern Indonesia's current-account gap will leave the nation vulnerable to fund outflows. The Czech koruna slumped 5.8 percent versus the euro after the country's central bank bought foreign currency valued at about 200 billion koruna ($9.9 billion), about 5 percent of economic output, in a bid to ward off the threat of deflation. South Africa's rand lost 1.3 percent to 10.1742 per dollar, the largest retreat since August.

Slowest Pace

Foreign investors sold 31.6 billion rand ($3.1 billion) of South African bonds and equities last month through Nov. 28, the biggest capital outflow since Sept. 2011, according to JSE Ltd. data. The economy expanded at the slowest pace since the recession in 2009 in the third quarter. The rand weakened 17 percent this year.

"The economic momentum and the monetary policy momentum are better in the developed economies," said Jim McDonald, chief investment strategist at Northern Trust Corp. in Chicago, which manages about $846 billion of assets. "There is still too much uncertainty in the emerging world and that's what their stocks are reflecting."

Can Bank of America Continue to Outperform?

With shares of Bank of America (NYSE:BAC) trading around $16, is BAC an OUTPERFORM, WAIT AND SEE, or STAY AWAY? Let's analyze the stock with the relevant sections of our CHEAT SHEET investing framework:

T = Trends for a Stock’s Movement

Bank of America is a financial institution serving individual consumers, small- and middle-market businesses, corporations, and governments with a range of banking, investing, asset management, and other financial and risk management products and services. With its banking and various non-banking subsidiaries throughout the United States and international markets, the company provides a range of banking and non-banking financial services and products through several business segments: consumer and business banking, consumer real estate services, global banking, global markets, global wealth, investment management, and other.

The U.S. government has raised the amount it is seeking in penalties from Bank of America Corp. to $2.1 billion after a jury found the bank was liable for fraud over defective mortgages sold by its Countrywide unit. The request in a court filing late on Wednesday for $2.1 billion was based on gross revenue generated by the fraud, the government said. The Justice Department had previously asked for $863.6 million. The initial request was based on gross losses it said government-sponsored mortgage finance companies Fannie Mae and Freddie Mac incurred on loans purchased from Countrywide Financial Corp in 2007 and 2008.

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T = Technicals on the Stock Chart Are Strong

Bank of America stock has been flying higher in recent quarters. The stock is currently trading near highs for the year and looks set to continue this path. Analyzing the price trend and its strength can be done using key simple moving averages. What are the key moving averages? The 50-day (pink), 100-day (blue), and 200-day (yellow) simple moving averages. As seen in the daily price chart below, Bank of America is trading above its rising key averages, which signal neutral to bullish price action in the near-term.

(Source: Thinkorswim)

Taking a look at the implied volatility (red) and implied volatility skew levels of Bank of America options may help determine if investors are bullish, neutral, or bearish.

	Implied Volatility (IV)	30-Day IV Percentile	90-Day IV Percentile
Bank of America options	25.77%	43%	41%

What does this mean? This means that investors or traders are buying a significant amount of call and put options contracts, as compared to the last 30 and 90 trading days.

	Put IV Skew	Call IV Skew
February Options	Flat	Average
March Options	Flat	Average

As of today, there is an average demand from call buyers or sellers and low demand by put buyers or high demand by put sellers, all neutral to bullish over the next two months. To summarize, investors are buying a significant amount of call and put option contracts and are leaning neutral to bullish over the next two months.

On the next page, let’s take a look at the earnings and revenue growth rates and the conclusion.

E = Earnings Are Increasing Quarter-Over-Quarter

Rising stock prices are often strongly correlated with rising earnings and revenue growth rates. Also, the last four quarterly earnings announcement reactions help gauge investor sentiment on Bank of America’s stock. What do the last four quarterly earnings and revenue growth (Y-O-Y) figures for Bank of America look like and more importantly, how did the markets like these numbers?

	2013 Q4	2013 Q3	2013 Q2	2013 Q1
Earnings Growth (Y-O-Y)	866.67%	20.00%	68.42%	233.30%
Revenue Growth (Y-O-Y)	364.48%	-1.52%	3.46%	4.13%
Earnings Reaction	2.26%	2.24%	2.80%	-4.72%

Bank of America has seen increasing earnings and revenue figures over the last four quarters. From these numbers, the markets have had conflicting feelings about Bank of America’s recent earnings announcements.

P = Excellent Relative Performance Versus Peers and Sector

How has Bank of America stock done relative to its peers, JPMorgan Chase (NYSE:JPM), Wells Fargo (NYSE:WFC), Citigroup (NYSE:C), and sector?

	Bank of America	JPMorgan Chase	Wells Fargo	Citigroup	Sector
Year-to-Date Return	8.32%	-4.04%	1.34%	-8.03%	-1.60%

Bank of America has been a relative performance leader, year-to-date.

Conclusion

Bank of America is a bank and financial services giant that operates in a recovering financial industry, the backbone of the United States economy. The U.S. government has raised the amount it is seeking in penalties from Bank of America to $2.1 billion. The stock has been exploding to the upside in recent quarters and is currently trading near highs for the year. Over the last four quarters, earnings and revenue figures have been have been increasing. However, investors have had conflicting feelings about recent earnings announcements. Relative to its peers and sector, Bank of America has been a year-to-date performance leader. Look for Bank of America to OUTPERFORM.