New State Laws OK Wine Shipments, Ban Tiger Selfies

Jae C. Hong/APCalifornia -- which suffered a shooting in Santa Barbara in May, where seven died -- will now search gun purchases as part of routine welfare checks. New state laws taking effect Thursday give livestock in California more living room, approve direct-to-consumer wine shipments in Massachusetts and levy the ultimate punishment on wannabe teen drivers in Nevada by denying them licenses if they skip too much school. Other laws will allow Louisiana teens as young as 16 to register to vote, crack down on meth dealers in Michigan, end tax breaks for filmmakers in North Carolina and raise the minimum wage in Ohio, New York, Rhode Island and elsewhere. Although it doesn't take effect until early February, a New York law captures this year's "Who knew?" prize by banning tiger selfies, which have been used by young men as profile photos on social media sites. A look at some of the new laws taking effect Jan. 1, in alphabetical order by topic: Alcohol Wine connoisseurs will be popping the cork over a new law taking effect Thursday that allows out-of-state wineries to ship bottles directly to consumers in Massachusetts. The drive for direct wine shipments had been stalled for years before getting a big boost from former New England Patriots quarterback Drew Bledsoe. Now a winemaker in Washington state, Bledsoe complained to lawmakers he could not send his products to Massachusetts residents, including fans and former teammates like current Patriots quarterback Tom Brady. Animals In California, a ballot initiative approved by voters in 2008 takes effect restricting the confinement of egg-laying hens, breeding sows and veal calves. The Humane Society of the United States says the law goes further than any in the country when coupled with a law signed by former Gov. Arnold Schwarzenegger that extends the space requirements for egg-laying hens to out-of-state suppliers. In Utah, cities and towns can no longer ban specific dog breeds within their limits. At least 10 cities now have restrictions that ban ownership of breeds such as pit bulls. Crime In California, a "yes means yes" standard for sex between college students takes effect, requiring "an affirmative, conscious and voluntary agreement to engage in sexual activity," meaning silence or a lack of resistance can no longer be deemed consent. In Michigan, rape evidence may be better organized and tracked under laws designed to help ensure kits aren't caught in the sort of backlog found when more than 11,000 untested boxes were discovered in a Detroit Police storage facility in 2009. In Louisiana, law enforcement agencies must provide a tally of the number of untested rape kits on their shelves by Thursday, part of a law that took effect in August. Drug Abuse In Michigan, buying cough and cold medicines for the purpose of making methamphetamine will be illegal under another series of measures intended to crack down on meth makers. The laws also prohibit asking someone to buy the ingredients and require state police to add meth offenders to a national database. Elections In Louisiana, 16- and 17-year-olds will be able to register to vote when obtaining a driver's license, though they still won't be able to vote until they turn 18. In North Carolina, individuals filing as a candidate in a party primary must have had an affiliation with that party for at least 90 days before filing a candidacy notice. A Delaware law establishes new rules for allocating campaign contributions among joint account holders, such as when spouses submit a political contribution using a single check. Environment In North Carolina, home sellers will have to disclose whether they know if underground oil and gas rights have been sold. In New York State, consumers must begin recycling old computers, televisions and video game consoles instead of throwing them in the trash. In the face of a three-year drought, new California laws require water districts and other local entities to develop plans to manage their groundwater and allow the state to intervene if necessary. Health In Louisiana, smoking will be banned within 25 feet of public entrances to state office buildings, as a way to lessen exposure to secondhand smoke. Hunting In North Carolina, the state Wildlife Resources Commission faces new restrictions on how high it can raise fees on hunting, fishing and trapping licenses. Starting with the new year, the fees can't be raised beyond a widely used measure of inflation averaged over the previous five years. Motor Vehicles In California, drivers' licenses will be available for people in the country illegally. In Nevada, students who are declared habitually truant could be delayed from obtaining a driver's license, or could have their license suspended. In Florida, all children aged 4 and 5 will be required to sit in a child safety seat or booster seat instead of using just a car seat belt. In Indiana, license plates will be required on motor scooters for the first time following complaints about unsafe driving by those who've lost their licenses because of drunken driving arrests or other offenses. In Michigan, lawmakers closed a loophole so motorcyclists can no longer buy a temporary permit every riding season without taking a safety or skills test needed for a full endorsement. Massachusetts will finally allow "hold open" clips on pumps at self-service gasoline stations, ending motorists' complaints - particularly in winter -- about being in one of the few states where the clips weren't allowed. In Utah, police will be required to impound the vehicles of uninsured drivers instead of just having the option to do so. Social Media In New York in February, it becomes illegal to pose for a photo with a lion, tiger or other big cat. The measure, which specifically prohibits contact between members of the public and big cats at animal shows, passed after self-portraits with the animals started becoming more popular online, particularly with some young men on dating sites. Taxes In North Carolina, Republican lawmakers who approved an income tax cut also took away breaks to filmmakers. Expiring is a 25 percent tax credit for TV and film productions that in 2013 allowed producers to forego paying $61 million in state taxes. It's being replaced in 2015 by a grant program for video productions capped at $10 million. In Virginia, drivers can expect to see a 5 cents-per-gallon increase in the cost of gas, while Maryland's gas tax is set to rise about 3.5 cents. In Mississippi, totally disabled veterans and their surviving spouses who have not remarried would not have to pay property taxes on their primary residence. Wages The minimum wage goes up Thursday in several states, including Arkansas, Connecticut, Florida, Ohio, Maryland, Massachusetts and Rhode Island. A wage increase in New York takes effect Wednesday. In addition, troopers in Oklahoma get their first pay raise in seven years. Weapons In Pennsylvania on Jan. 5, a law takes effect that's designed to give the National Rifle Association, or any gun owner, a better chance at successfully challenging local firearms ordinances in court. In general, Pennsylvania bars its municipalities from enforcing firearms ordinances that are stronger than state law. But the NRA has complained that dozens of local ordinances go unchallenged in Pennsylvania courts by residents who can prove it harmed them. In California, law enforcement agencies are required to develop policies that encourage officers to search the state's database of gun purchases as part of routine welfare checks. The bill was prompted by sheriff's deputies' failure to detect the danger posed by a man who weeks later embarked on a deadly rampage in May near the University of California, Santa Barbara. Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed. More from The Associated Press
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Owners of recalled GM cars face repair waits

Nine million parts.

That's what General Motors needs to repair millions of cars it has recalled since Feb. 7. With ignition switches, power steering motors and other parts slowly arriving at dealers, frustrated drivers face waits of weeks or months, some while driving cars they fear are unsafe.

Any recall can present challenges for automakers and customers. Still, most recalls include less than 50,000 vehicles and are typically completed in two or three months.

But experts say eight simultaneous recalls covering 7 million vehicles is too much for any organization to handle quickly, even one as big as GM. Suppliers have to make the parts — millions aren't sitting in stock. GM has to notify customers, ship the parts to dealers worldwide and train mechanics how to do repairs.

GM says it will take six months to make and distribute all the parts for the largest recall: 2.6 million small cars with faulty ignition switches that the company links to 13 deaths. The switches, mainly in older Chevrolet Cobalts and Saturn Ions, can slip out of the "run" position into "accessory," shutting off engines and disabling power-assisted steering and air bags. GM has told dealers to offer concerned owners a loaner car while they wait for parts. Those cars also need to have a second part replaced.

There's no estimate yet on when the other recalls will be finished.

Owners of all car brands might watch the mail for more notices. GM rival Toyota, which itself recently ordered recalls of millions of vehicles, expects automakers to be more proactive in bringing cars in for repairs.

At least initially, the GM ignition switch recall didn't go smoothly.

"This is a big ol' hot mess," said Blair Parker, a Houston-area attorney who owns a 2005 Chevrolet Cobalt included in the switch recall. Her dealer can't tell her exactly when parts will arrive.

A few months ago, Parker's car engine shut off unexpectedly when she hit the keys with her hand, an incident she had chalked up to user ! error. Now she worries the Cobalt's switch is defective, and is driving a loaner car.

"We just decided it wasn't worth the risk," she said.

After the switch recall, GM conducted a review that turned up 4 million more vehicles with problems, including faulty power steering motors, transmission oil leaks, defective drive shafts and air bag troubles. About 500,000 of them only need a fitting to be tightened and don't need parts.

All told, the recalls present a Herculean task for GM. Multiple suppliers are involved, and parts need to go to more than 4,300 dealers.

Dave Closs, chairman of the Supply Chain Management Department at Michigan State University, says GM dealers will have frustrated customers on their hands for a while.

Parts makers have to find factory space and workers to ramp up assembly lines. GM said Delphi Automotive PLC has one line working seven days per week to make ignition switches and it's setting up two more.

Finished parts must then be inspected for quality. After that comes shipping, a costly and slow process, Closs says.

"You're shipping relatively small shipments all over the world," he says.

Toyota is in a similar situation. Last month it announced recalls totaling 6.4 million vehicles to fix defective seats and bad air bag wiring.

Bob Carter, Toyota's U.S. automotive operations chief, says car owners can expect more frequent recalls because the regulatory and competitive environments have changed. Instead of recalling cars for known defects, companies are now "recalling vehicles to change problems that we anticipate might happen," Carter says.

GM is under fire because it knew about the problem with the ignition switches for 10 years before conducting the recall. Two congressional committees, the Justice Department and federal safety regulators are investigating GM's slow response, and criminal charges are possible. GM has hired lawyer Kenneth Feinberg to negotiate settlements with surviving families and some injured driv! ers.

So far, the company says it isn't going to use its 2009 bankruptcy as a shield from wrongful death and injury claims. However, it is seeking bankruptcy court protection from claims that its small cars lost value.

Wendi Kunkel's 2010 Chevy Cobalt is part of the switch recall. Her dealer told her to pull everything off her keychain, which GM contends will stop the switches from turning off unexpectedly. But she's nervous about her 30-minute one-way commute near Dallas.

"I'm on a highway where I'm going 65 mph," the public relations representative says. "If my car were to switch into accessory or off, the likelihood of me crashing and not having air bags deployed — it's pretty terrifying to think about."

Kunkel says her dealer, Lakeside Chevrolet in Rockwall, Texas, didn't initially offer her a loaner, although she plans to ask for one.

Frank Pecora, Lakeside's service manager, said the dealership doesn't offer loaners unless customers express concern for their safety, per instructions from GM.

So far, GM has put 45,000 customers in loaners, equal to 1.7% of the cars recalled for the ignition switches.

GM isn't offering loaners to car owners affected by the other recalls. Duane Paddock, owner of a Chevrolet dealer near Buffalo, New York, says he's offering loaners on his own dime to keep customers happy.

Recalls are often profitable for dealers such as Paddock because GM provides the parts and pays for installation. Also, owners of older cars travel to dealerships for repairs and see the company's new vehicles while they wait.

Dealers say small numbers of parts began arriving late in the week of April 7, and the pace has picked up. GM says it has shipped thousands of ignition switches and notified 1.4 million owners to set up repair appointments.

Jerry Seiner, chairman of a Salt Lake City-area dealership group, says his technicians have replaced 23 ignition switches and lock mechanisms for owners who contacted them before April 1. After more publici! ty about ! the problem in April, more than 150 people now are waiting for parts. Seiner says parts are arriving three to four weeks after they're ordered.

Indexes Break Winning Streak; Anadarko Soars, Barnes & Noble Tumbles

Stocks took a breather Thursday after three consecutive all-time highs for the S&P 500.

The Dow Jones Industrial Average ended essentially flat, losing less than half a point to close at 16,572.55. Nonetheless, this was still its third-highest close in history.

The S&P 500 lost 2.13, or 1.1% to finish at 1,888.77, backing off Wednesday's record high.

Big winners today included Anadarko Petroleum (APC), which rose 14.5% on news it had a $5.15 billion settlement related to its purchase of Kerr-McGee and the Tronox bankruptcy.

Walgreen (WAG) and Rite Aid (RAD) ended the day up more than 1% and 2%, respectively, as investors were happy to see March same-store sales rise, even if they didn't meet expectations.

Losers included Citigroup (C), which slipped 1.2% on news of a fraud investigation and analyst downgrade.

Barnes & Noble (BKS) tumbled 13.5% on news that Liberty Media (LMCA) is selling most of its 17% stake in the bookseller.

5 Stocks Under $10 Set to Soar

Delafield, Wis. (Stockpickr) -- There isn't a day that goes by on Wall Street when certain stocks trading for $10 a share or less don't experience massive spikes higher. Traders savvy enough to follow the low-priced names and trade them with discipline and sound risk management are banking ridiculous coin on a regular basis.

>>5 Active Trades for a Quiet Month

Just take a look at some of the hot movers in the under-$10 complex from Thursday, including Zoom Technologies (ZOOM), which is skyrocketing higher by 23%; Mandalay Digital Group (MNDL), which is soaring higher by 13%; Codexis (CDXS), which is ripping higher by 9%; and Lucas Energy (LEI), which is spiking higher by 8.5%. You don't even have to catch the entire move in lower-priced stocks such as these to make outsized returns when trading.

One low-priced stock that recently skyrocketed higher after I featured it was pharmaceutical retailer and distributor China Jo Jo Drugstores (CJJD), which I highlighted in Jan. 10's "5 Stocks Under $10 Set to Soar" at $1.13 per share. I mentioned in that piece that shares of China Jo Jo Drugstores had been uptrending over the last month and change, with the stock moving higher from its low of 65 cents per share to its recent high of $1.18 a share. That uptrend was quickly pushing shares of CJJD within range of triggering a big breakout trade above some near-term overhead resistance levels at $1.18 a share to some past overhead resistance levels at $1.21 to $1.32 a share.

>>5 Stocks With Big Insider Buying

Guess what happened? Shares of China Jo Jo Drugstores didn't wait long to trigger that breakout, since the stock exploded higher on the same day my article hit the wires. This stock tagged an intraday high on January 10 of $1.90 a share and the volume during that trading session was 2.25 million shares versus its three-month average volume of 147,687 shares. That represents a monster gain of close to 70% in just one trading session for anyone who bought the stock has volume started to pour in and anticipated the breakout. Shares of CJJD might be ready to breakout again if the stock can take out some near-term overhead resistance at $1.50 with strong upside volume.

>>XXX

Low-priced stocks are something that I tweet about on a regular basis. I frequently flag high-probability setups, breakout candidates and low-priced stocks that are acting technically bullish. I like to hunt for low-priced stocks that are showing bullish price and volume trends, since that increases the probability of those stocks heading higher. These setups often produce monster moves higher in very short time frames.

I'm not as eager to recommend investing long-term in stocks that trade less than $10 a share because these names can be very speculative, and the odds for picking the long-term winners aren't great. But I definitely love to trade stocks that are priced below $10. I like to view them as a trading vehicle with lots of volatility and lots of upside when the trade is timed right.

>>Should You Invest in the Government's 5 Favorite Stocks?

When I trade under-$10 names, I do it almost entirely based off of the charts and technical analysis. I also like to find under-$10 names with a catalyst, but that's secondary to the chart and volume patterns.

With that in mind, here's a look at several under-$10 stocks that look poised to potentially trade higher from current levels.

Altair Nanotechnologies

One under-$10 technology player that's starting to move within range of triggering a major breakout trade is Altair Nanotechnologies (ALTI), which develops, manufactures and sells nano lithium titanate batteries and energy storage systems primarily in the U.S. and China. This stock has been on fire over the last six months, with shares up a whopping 128%.

>>4 Tech Stocks Rising on Unusual Volume

If you take a look at the chart for Altair Nanotechnologies, you'll notice that this stock has started to flirt with a near-term breakout trade today, after shares briefly traded above some resistance at $5.20 a share. That spike is starting to push shares of ALTI within range of triggering an even bigger breakout trade above some key near-term and past overhead resistance levels.

Traders should now look for long-biased trades in ALTI if it manages to break out above some near-term overhead resistance at $5.60 a share and then once it clears some past overhead resistance at $6.19 a share with high volume. Look for a sustained move or close above those levels with volume that hits near or above its three-month average volume of 66,298 shares. If that breakout triggers soon, then ALTI will set up to re-test or possibly take out its next major overhead resistance levels at $7.50 to its 52-week high at $8 a share.

Traders can look to buy ALTI off any weakness to anticipate that breakout and simply use a stop that sits right below some key near-term support levels at $4.73 a share or just below its 50-day moving average of $4.53 a share. One can also buy ALTI off strength once it starts to take out those breakout levels with volume and then simply use a stop that sits a comfortable percentage from your entry point.

JA Solar

Another under-$10 solar player that's starting to move within range of triggering a near-term breakout trade is JA Solar (JASO), which through its subsidiaries, engages in the design, development, production, marketing and sale of solar power products based on crystalline silicon technologies. This stock has trended modestly higher over the last six months, with shares moving up by 11%.

>>5 Big Tech Stocks to Sell Now

If you take a look at the chart for JA Solar, you'll notice that this stock has started to spike higher here back above its 50-day moving average of $9.85 share with solid upside volume. Volume so far in Thursday's trading session has hit 2.12 million shares, which is just below its three-month average action of 2.57 million shares. This spike is starting to move shares of JASO within range of triggering a near-term breakout trade.

Market players should now look for long-biased trades in JASO if it manages to break out above some near-term overhead resistance at $10.66 a share with high volume. Look for a sustained move or close above that level with volume that hits near or above its three-month average action of 2.57 million shares. If that breakout hits soon, then JASO will set up to re-test or possibly take out its next major overhead resistance levels at $12 to its 52-week high at $12.80 a share. Any high-volume move above $12.80 to $12.85 will then give JASO a chance to tag $15 a share.

Traders can look to buy JASO off any weakness to anticipate that breakout and simply use a stop that sits around some key near-term support at $8.94 a share. One can also buy JASO off strength once it starts to clear $10.66 a share with volume and then simply use a stop that sits a comfortable percentage from your entry point.

Dehaier Medical Systems

One under-$10 health care player that's quickly moving within range of triggering a major breakout trade is Dehaier Medical Systems (DHRM), which, through its subsidiaries, develops and distributes medical devices and sleep respiratory and oxygen therapy products in the People's Republic of China. This stock has been red hot over the last six months, with shares up a whopping 141%.

>>5 Hated Earnings Stocks You Should Love

If you take a look at the chart for Dehaier Medical Systems, you'll notice that this stock has been uptrending strong over the last three months and change, with shares moving higher from its low of $2 a share to its recent high of $4.80 a share. During that uptrend, shares of DHRM have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of DHRM within range of triggering a major breakout trade.

Traders should now look for long-biased trades in DHRM if it manages to break out above some near-term overhead resistance at $4.80 a share to its 52-week high a $4.85 a share with high volume. Look for a sustained move or close above that level with volume that hits near or above its three-month average volume of 104,479 shares. If that breakout triggers soon, then DHRM will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $6.50 to $7 a share.

Traders can look to buy DHRM off weakness to anticipate that breakout and simply use a stop that sits just below some key near-term support levels at $4.25 a share or around its 50-day moving average at $3.95 a share. One can also buy DHRM off strength once it starts to take out those breakout levels with volume and then simply use a stop that sits a comfortable percentage from your entry point.

Oxygen Biotherapeutics

Another under-$10 stock that's starting to trend within range of triggering a big breakout trade is Oxygen Biotherapeutics (OXBT), a development-stage company, engages in developing biotechnology products that deliver oxygen to target tissues in the body primarily in the U.S. This stock has been in play with the bulls over the last six months, with shares up huge by 127%.

>>2 Biotech Stocks Spiking on Unusual Volume

If you take a look at the chart for Oxygen Biotherapeutics you'll notice that this stock has been uptrending strong over the last month, with shares moving higher from its low of $4.20 to its recent high of $8.58 a share. During that uptrend, shares OXBT have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of OXBT within range of triggering a big breakout trade above some key near-term overhead resistance levels.

Market players should now look for long-biased trades in OXBT if it manages to break out above some near-term overhead resistance levels at $7.25 to $8.58 a share with high volume. Look for a sustained move or close above those levels with volume that hits near or above its three-month average action of 147,898 shares. If that breakout hits soon, then OXBT will set up to re-test or possibly take out its next major overhead resistance levels at $11.40 to $13 a share.

Traders can look to buy OXBT off weakness to anticipate that breakout and simply use a stop that sits just below its 50-day moving average of $5.79 a share. One can also buy OXBT off strength once it starts to clear those breakout levels with volume and then simply use a stop that sits a comfortable percentage from your entry point.

Unilife

One final under-$10 healthcare player that's quickly moving within range of triggering a major breakout trade is Unilife (UNIS), which designs, develops, manufactures, and commercializes injectable drug delivery systems in the U.S. and internationally. This stock has been trending strong over the last six months, with shares up sharply by 49%.

If you take a look at the chart for Unilife, you'll notice that this stock has broken out here and taken out some near-term overhead resistance at $4.71 a share with decent upside volume. This move is quickly pushing shares of UNIS within range of triggering an even bigger breakout trade above some key near-term overhead resistance.

Traders should now look for long-biased trades in UNIS if it manages to break out above its 52-week high at $5.10 a share with high volume. Look for a sustained move or close above that level with volume that hits near or above its three-month average action of 1.87 million shares. If that breakout hits soon, then UNIS will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $6 to $7 a share.

Traders can look to buy UNIS off weakness to anticipate that breakout and simply use a stop that sits right below some near-term support at $4.25 a share or around its 50-day moving average of $4.01 a share. One can also buy UNIS off strength once it starts to take out $5.10 a share with volume and then simply use a stop that sits a comfortable percentage from your entry point.

To see more hot under-$10 equities, check out the Stocks Under $10 Setting Up to Explode portfolio on Stockpickr.

-- Written by Roberto Pedone in Delafield, Wis.

RELATED LINKS:

>>5 Rocket Stocks to Stomp the S&P in 2014

>>4 Stocks Under $10 Making Big Moves

>>The Case for a Correction in Stocks

Follow Stockpickr on Twitter and become a fan on Facebook.

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

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

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

Theme Parks: The Next Generation (DIS, IFLM, FUN, SIX)

When investors and/or consumers think of a theme park company, a name like Six Flags Entertainment Corp. (NYSE:SIX) or the quintessential The Walt Disney Company (NYSE:DIS) comes to mind. And well they should. Disney is easily the world's most popular amusement park purveyor, while many thrill-seekers say a Six Flags park is the place to go for the most intense thrill ride experience. Rarely - as in never - does a little independent film company sneak into the conversation regarding the world's top amusement parks. That may be about to change, however, if Independent Film Development Corporation (OTCMKTS:IFLM).

Odds are you've never heard of Independent Film Development Corporation, aka IndyFilmCorp. It's a relatively small distributor of (no surprise here) independent films, though it's got its hand in the television business too. Some of its films and programs you may even be familiar with. For instance, it owns the rights to the Three Stooges franchise, and it was the company behind the celebrity profile show 'Autograph".

It's not its television and film work that's apt to put it on the map and on par with The Walt Disney Company, however. It's the theme park - and eventually, theme parks - that Independent Film Development Corporation is planning that will not only make Six Flags Entertainment or Cedar Fair, L.P. (NYSE:FUN) take notice, but could force even the venerable Disney to turn its head.

How's that? After all, The Walt Disney Company is second to none when it comes to delighting guests by immersing them in a story (often a Disney-movie themed one) via one of its parks' rides. The answer is, as immersing and experiential as most Disney theme park attractions are, IndyFilmCorp's planned attractions are going to deliver the intensity and maturity that modern thrill-seekers demand... the kinds of scares and shivers that Disney has almost made a point of avoiding, not wanting to alienate children and families.

Newsflash: Even young children, perhaps desensitized by modern video games and a plethora of fear-driven television and movies, want and even crave more serious and more immersive amusement park experiences. IndyFilmCorp is simply aiming to deliver those experiences.

See, the theme park business model is an ever-changing one. What's hot or not is often a reflection of the culture and social norms at any given time. When Disneyland opened in 1955, westerns (TV as well as movies) were all the rage, and the FrontierLand area of the Disney Park was a favorite of all the themed areas. As time went on though, FrontierLand (at both parks) has become less of a destination and more of a route to get to other areas of the park. Roller Coasters were the hot button in the 80's and 90's, as amusement parks like Cedar Point (Cedar Fair), Kings Island, and the Six Flags franchise all battled for bragging rights by owning the biggest, baddest, tallest, and wildest coaster on the planet. Once computers and video-technologies saw huge leaps on the late 90's and early 2000's, it become clear to consumers as well as park owners that, visually speaking, there didn't have to be any kind of visual limitations to a ride experience. That's when 3D experiences like the Transformers ride at Universal Studios on Orlando, Florida started to become more common... and incredible.

The latest cultural/social trend is evident on the small screen as well as the big screen.... ghosts and goblins, and all things if the ilk. The Twilight movies series as well as the Harry Potter franchise were huge hits that may or may not have "gone over" a couple of decades ago. Television shows like "Ancient Aliens", "The Walking Dead", or "Ghost Hunters" wouldn't have been able to garner they same following they have now had they been aired in the 70's. People love these programs and movies now, however. It's one of the few genres that actually inspires people to disconnect from their smartphones for a while, and that's where Independent Film Development Corporation is going to stake its claim.

Though still in the planning stages, IndyFilmCorp has drawn the basic idea for its first theme park, in New York state. The attractions on the table are a log-flue ride that takes riders through the River Styx, an Area 51 UFO crash site, and a zombie-shooter ride, just to name a few.

Intense? Yes, but that's the point. It's what theme park-goers want.

And better still, who better to put together a visually-stimulating ride than a film company? IFLM has already been in discussions with Hollywood's top set-designers and special effects people to hash out how the park's rides and attractions could be the most convincing and immersive they could be.

It would be years before the first IndyFilmCorp amusement park would be complete. Veteran investors know how this works though. The market rewards the company by budding IFLM up in stages, as certain milestones are met. The concept itself is more than compelling enough to build a story around the stock. Traders for something fun to do may want to take a closer look at how IndyFilmCorp is capitalizing on the latest evolution of consumer demands.

For more on Independent Film Development Corporation, visit the corporate website here.

Feds expand hunt for offshore tax evaders

U.S. authorities have widened their hunt for Americans suspected of evading taxes by hiding assets and income in offshore bank accounts.

Federal judges approved special summonses aimed at getting account data and identifying information of American banking clients of Switzerland's Zurcher Kantonalbank and Bermuda-based N.T. Butterfield & Son, prosecutors said Tuesday.

The two banks, which could not immediately be reached for comment, don't have U.S. operations. So investigators got authorization to serve the summonses on four U.S. banks and one London-based bank where Zurcher Kantonalbank and N.T. Butterfield maintained correspondent accounts to service U.S. clients.

The five include Bank of New York Mellon, Citibank, JPMorgan Chase Bank, HSBC Bank and Bank of America.

The court approvals authorize so-called John Doe summonses that the IRS has used to obtain information about possible tax fraud by individuals whose identities are unknown. The tax agency and Department of Justice has relied on the legal tactic during their continuing crackdown on offshore tax evasion.

"These John Doe summonses will provide information about individuals using financial institutions from Switzerland to the Cayman Islands to Hong Kong to avoid their U.S. tax obligations," said Assistant U.S. Attorney General Kathryn Keneally.

Authorities previously used similar summonses in 2011 to seek information about American clients of London-based HSBC's India division.

They also won court approval in 2009 to serve John Doe summonses on Swiss banking giant UBS. That ultimately led to UBS turning over information on an estimated 4,450 American clients. The bank, Switzerland's largest, also paid a $780 million fine under a deferred prosecution agreement after acknowledging it had held clients duck U.S. taxes.

Western Digital to Acquire Virident Systems (WDC)

On Monday, storage solution company Western Digital Corp (WDC) announced that it has agreed to acquire Virident Systems, Inc. for $685 million.

The flash storage solutions company will be purchased by HGST, which is a subsidiary of WDC, for a total of $685 million in cash. This amount represents approximately $645 million in enterprise value.

This deal will allow WDC to expand its presence in the solid state drives market. This market is expected to grow from $2.5 billion in revenue in 2012 to $7 billion in revenue by 2017.

Mike Cordano, president of Western Digital unit HGST commented: “Virident’s server-side flash storage helps datacenter customers solve their most significant data infrastructure challenges, including application performance across diverse workloads, power efficiency, and total cost of ownership.”

Western Digital shares were up 37 cents, or 0.57%, during pre-market trading Monday. The stock is up 53% YTD.

Why GameStop Is Poised to Plunge

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, video game retailer GameStop (NYSE: GME  ) has received an alarming one-star ranking.

With that in mind, let's take a closer look at GameStop and see what CAPS investors are saying about the stock right now.

GameStop facts

Headquarters (founded)	Grapevine, Texas (1994)
Market Cap	$4.6 billion
Industry	Computer and electronics retail
Trailing-12-Month Revenue	$8.9 billion
Management	CEO J. Paul Raines (since 2010) CFO Robert Lloyd (since 2010)
Return on Equity (average, past 3 years)	5.3%
Cash/Debt	$635.8 million / $0
Dividend Yield	2.8%
Competitors	Amazon.com  Best Buy  Wal-Mart Stores

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 11% of the 3,174 members who have rated GameStop believe the stock will underperform the S&P 500 going forward.

Just last week, one of those Fools, Yakoloi, succinctly summed up the GameStop bear case for our community:

No matter how well run, or how solid this company is there is one thing that will KILL [GameStop]. Direct digital game sales. ... Remember what happened to Blockbuster video? When is the last time you saw Wherehouse CD store? The same thing that happened to music and movies is happening to the Video Games. Gamestop has its foot in the door of the direct digital download service but it is far too little far too late with Microsoft, Sony and other major publishers far ahead in the game. Their entire business model is backed into a shrinking corner, abandon ship!

To learn about two retailers with especially good prospects, take a look at The Motley Fool's special free report: "The Death of Wal-Mart: The Real Cash Kings Changing the Face of Retail." In it, you'll see how these two cash kings are able to consistently outperform and how they're planning to ride the waves of retail's changing tide. You can access it by clicking here.

Is PAREXEL International a Cash Machine?

Although business headlines still tout earnings numbers, many investors have moved past net earnings as a measure of a company's economic output. That's because earnings are very often less trustworthy than cash flow, since earnings are more open to manipulation based on dubious judgment calls.

Earnings' unreliability is one of the reasons Foolish investors often flip straight past the income statement to check the cash flow statement. In general, by taking a close look at the cash moving in and out of the business, you can better understand whether the last batch of earnings brought money into the company, or merely disguised a cash gusher with a pretty headline.

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

Source: S&P Capital IQ. Data is current as of last fully reported fiscal quarter. Dollar values in millions. FCF = free cash flow. FY = fiscal year. TTM = trailing 12 months.

Over the past 12 months, PAREXEL International generated $143.9 million cash while it booked net income of $83.7 million. That means it turned 8.6% of its revenue into FCF. That sounds OK.

All cash is not equal
Unfortunately, the cash flow statement isn't immune from nonsense, either. That's why it pays to take a close look at the components of cash flow from operations, to make sure that the cash flows are of high quality. What does that mean? To me, it means they need to be real and replicable in the upcoming quarters, rather than being offset by continual cash outflows that don't appear on the income statement (such as major capital expenditures).

For instance, cash flow based on cash net income and adjustments for non-cash income-statement expenses (like depreciation) is generally favorable. An increase in cash flow based on stiffing your suppliers (by increasing accounts payable for the short term) or shortchanging Uncle Sam on taxes will come back to bite investors later. The same goes for decreasing accounts receivable; this is good to see, but it's ordinary in recessionary times, and you can only increase collections so much. Finally, adding stock-based compensation expense back to cash flows is questionable when a company hands out a lot of equity to employees and uses cash in later periods to buy back those shares.

So how does the cash flow at PAREXEL International look? Take a peek at the chart below, which flags questionable cash flow sources with a red bar.

Source: S&P Capital IQ. Data is current as of last fully reported fiscal quarter. Dollar values in millions. TTM = trailing 12 months.

When I say "questionable cash flow sources," I mean items such as changes in taxes payable, tax benefits from stock options, and asset sales, among others. That's not to say that companies booking these as sources of cash flow are weak, or are engaging in any sort of wrongdoing, or that everything that comes up questionable in my graph is automatically bad news. But whenever a company is getting more than, say, 10% of its cash from operations from these dubious sources, investors ought to make sure to refer to the filings and dig in.

With questionable cash flows amounting to only 7.1% of operating cash flow, PAREXEL International's cash flows look clean. Within the questionable cash flow figure plotted in the TTM period above, stock-based compensation and related tax benefits provided the biggest boost, at 3.1% of cash flow from operations. Overall, the biggest drag on FCF came from capital expenditures, which consumed 37.5% of cash from operations.

A Foolish final thought
Most investors don't keep tabs on their companies' cash flow. I think that's a mistake. If you take the time to read past the headlines and crack a filing now and then, you're in a much better position to spot potential trouble early. Better yet, you'll improve your odds of finding the underappreciated home-run stocks that provide the market's best returns.

If you're interested in companies like PAREXEL International, you might want to check out the jaw-dropping technology that's about to put 100 million Chinese factory workers out on the street – and the 3 companies that control it. We'll tell you all about them in "The Future is Made in America." Click here for instant access to this free report.

We can help you keep tabs on your companies with My Watchlist, our free, personalized stock tracking service.

Add PAREXEL International to My Watchlist.

12 Days Of Charitable Giving 2014: The American Foundation For Suicide Prevention

Years ago, I found myself sitting in law school in Moot Court wearing an oversized itchy blue suit. It was a horrible experience. In a desperate attempt to avoid anything like that in the future I enrolled in a tax course. I loved it. I signed up for another. Before I knew it, in addition to my JD, I had a LL.M Taxation. I needed only to don my cape…. taxgirl® was born. Today, I live and work in Philadelphia, PA, one of the best cities in the world (I can't even complain about the sports teams these days). I landed in the City of Brotherly Love by way of Temple University School of Law. While at law school, I interned at the estates attorney division of the IRS. At IRS, I participated in the review and audit of federal estate tax returns. I even took the lead on a successful audit. At audit, opposing counsel read my report, looked at his file and said, "Gentlemen, she's exactly right." I nearly fainted. It was a short jump from there to practicing, teaching, writing and breathing tax.

Contact Kelly Phillips Erb

The author is a Forbes contributor. The opinions expressed are those of the writer.

Hedge Funds Hate These 5 Stocks -- Should You?

BALTIMORE (Stockpickr) -- When the "smart money" piles behind a stock, you know that things are going to get interesting. And when the opposite happens -- when they hate a stock -- it's bound to get even more interesting.

After all, it's the sell list -- the names that institutional investors hate the most -- that represents some of the biggest conviction moves. Scouring fund managers' hate list is valuable for two important reasons: it includes names you should sell too, and it includes names that they're wrong about selling.

You see, hedge funds have a problem on their hands -- they're underperforming the rest of the market in 2014. Year-to-date, the average hedge fund is up just 3.34% according to performance data from BarclayHedge. That's well shy of the S&P 500's 8.7% return so far this year. And that underperformance means that hedge funds are panicking when positions aren't working out quickly.

Pro investors aren't immune from letting their emotions get the better of their trading. And when investors get emotionally involved with the names in their portfolios, they often do the wrong thing.

As a result, in many cases, portfolio managers are leaving money on the table. So today, we're taking a closer look at the stocks they hate the most to figure out where the opportunities lie this fall.

Luckily for us, we can get a glimpse at exactly which stocks top hedge funds' hate lists by looking at 13F statements. Institutional investors with more than $100 million in assets are required to file a 13F, a form that breaks down their stock positions for public consumption. From hedge funds to mutual funds to insurance companies, any professional investors who manage more than that $100 million watermark are required to file a 13F.

So, without further ado, here's a look at five stocks fund managers hate...

Schlumberger

Most of the selling last quarter took place in the energy sector -- and within it, no single stock got sold off as hard by funds as Schlumberger (SLB). All told, funds unloaded more than 4.57 million shares of the oil field servicer, a stake that's worth close to $430 million at current price levels. So, should you sell too? Not so fast.

Schlumberger is the biggest oil service company on the planet. The firm's revenues come from a menu of specialized field services such as seismic surveys and well drilling and positioning. In a nutshell, SLB's job is to pull oil out of the ground as efficiently as possible -- and with oil prices in freefall, SLB's value proposition matters more now than it did when crude was trading in the triple-digits. Oil firms turn to Schlumberger because the tasks they need to accomplish are too nuanced or proprietary to pull off in-house. And that gives the firm a deep economic moat.

Another part of SLB's deep moat comes from boots on the ground. Because Schlumberger is on-site at its clients' well locations, the firm is able to sell more complementary services at one time. The energy sector has gotten shellacked in the last few months, and frankly, that downward pressure isn't showing any signs of letting up. That said, SLB's revenues don't ebb and flow exactly in step with crude prices (unlike its clients), and shares look oversold here.

Chevron Corp.

One of Schlumberger's biggest partners is oil and gas supermajor Chevron Corp. (CVX). No, Chevron isn't the biggest of the oil companies, but it might just be the most attractive from a financial standpoint. Not that that helped the firm avoid fund managers' wrath last quarter -- funds unloaded more than 3.17 million shares of Chevron during the third quarter of 2014, a stake worth more than $365 million today.

Chevron's scale is huge. The firm produces 2.6 million barrels of oil equivalent a day, and sports proven reserves of 11.3 billion barrels. Chevron's outsized exposure to oil (versus the natural gas that peers have been buying up) has hurt it lately, as crude prices fell faster than natgas, no question about it. And because oil companies are basically leveraged bets on commodity prices, as crude gets closer to Chevron's cost of production, there are some real risks to long-term profitability that investors need to be thinking of.

I said earlier that CVX is the best-positioned supermajor financially. That's because the firm currently carries $16.6 billion in net cash and investments, the least-leveraged balance sheet in big energy right now. At current price levels, that net cash level is enough to cover close to 8% of Chevron's market capitalization. Even if Chevron is best-in-breed, it's best in a sketchy breed right now -- oil prices could realistically move lower, and Chevron's technical trajectory is down.

If you're yearning for energy sector exposure, Schlumberger has a more attractive risk/reward tradeoff right now.

McDonald's

Switching gears outside of the energy sector brings us to fast food chain McDonald's (MCD), another name on hedge funds' hate list. McDonald's has had a pretty tepid year in 2014, down 2.6% over a stretch when the S&P is within grabbing distance of double-digit upside. So it's not hugely surprising that fund managers don't have the patience to stick it out with MCD this fall. Funds sold 2.29 million shares of McDonald's over the course of the third quarter...

McDonald's is the biggest fast food restaurant chain in the world, with approximately 35,900 restaurant locations in 125 countries. Of those, nearly 7,000 are company-owned units. The other 80% of stores are franchised. That model has been a cash cow for MCD shareholders in the past, giving the firm claim to sticky recurring revenues supplying franchise stores with food ingredients, marketing, and employee training. Importantly, McDonald's owns the land beneath the majority of its franchisee restaurants; that huge land portfolio gives McDonald's more in common with a REIT than with the diner down the street.

The competitive nature of the fast food business means that MCD has gotten the squeeze in recent quarters as it tries to play catch up with a consumer that's moving up the "food chain" (so to speak) -- an ongoing initiative to improve food quality and make MCD more nimble should pay dividends down the road. In the meantime, McDonald's continues to execute well, especially given the discount currently on shares versus six months ago. The firm's 3.6% dividend yield should add some extra attractiveness given the prolonged low-interest rate environment that's expected to stretch well into 2015.

It looks like funds are making a mistake by selling MCD early here...

Qualcomm

Qualcomm (QCOM) is another name that's "bored" performance-focused hedge funds into selling: Qualcomm has been a laggard this year, only earning total returns of 5.5% so far in 2014. Funds sold 2.88 million shares of the wireless technology stock in the most recent quarter, a quarter-billion dollar stake at current price levels.

Qualcomm is a chipmaker that produces everything from processors to wireless communications cards. The firm's flagship Snapdragon processors provide OEMs with a completely integrated solution that can handle processing tasks, but also includes baseband features that connect to cellular networks. As handset makers continue to try to pack more features into the same device footprint, QCOM's expertise is increasingly valuable. That's why its products are found in nearly every middle to high-end smartphone on the market today.

The firm also a major a major tech IP licensor. The Qualcomm's patents effectively mean that every handset maker in the world has to pay royalties if they want their phones to operate on 3G and 4G networks. That makes QCOM a great pure play on the smartphone market as a whole. Likewise, Qualcomm is in stellar financial shape, with close to $33 billion in cash and investments on its balance sheet, and no debt. That's works out to almost $20 per share in cash and investments, enough to cover a quarter of QCOM's market capitalization today.

Ex-cash, shares trade for 13.9 -- a pretty cheap multiple given the handset growth expected in emerging markets over the next few years. Don't follow funds' sale of this stock.

American Express

Last up on pro investors' hate list is American Express (AXP).

American Express is the No. 3 payment network in the world, behind Visa (V) and MasterCard (MA), positioning that gives it a front-row seat to the fast adoption of electronic payments. Because AXP's network is closed-loop (it's the issuer on the majority of its cards), it enjoys some hard-to-replicate advantages over those peers. By focusing on attracting high-spending affluent consumers and businesses with its rewards programs and benefits (instead of focusing on issuing credit in volume), the firm owns a profitable niche in its flagship charge card products. And it collects bigger fees for its trouble.

Charge card products limit AXP's exposure to credit risk, while expanding programs with third-party lenders have been growing the firm's transaction volume. While mobile payments were seen as a risk to American Express' business, the fact that the recently-launched Apple Pay platform integrates the existing networks means that mobile payments could actually help entrench AXP's share of the market.

Last quarter, funds sold off 192,000 shares of American Express, making it the single most-hated name in the financial sector. AmEx looks like another one where the funds got it wrong...

-- Written by Jonas Elmerraji in Baltimore.

At the time of publication, author had no positions in the stocks mentioned.
Jonas Elmerraji, CMT, is a senior market analyst at Agora Financial in Baltimore and a contributor to TheStreet. Before that, he managed a portfolio of stocks for an investment advisory returned 15% in 2008. He has been featured in Forbes , Investor's Business Daily, and on CNBC.com. Jonas holds a degree in financial economics from UMBC and the Chartered Market Technician designation.

Follow Jonas on Twitter @JonasElmerraji

 

The Adrenaline-Pumping Ride of GoPro's IPO

gopro.com If a thrill-seeking mountain biker wants to take on some choppy terrain, it might not be a bad idea to ride GoPro's (GPRO) stock chart. One of the market's most volatile stocks is the maker of wearable cameras that extreme sporting enthusiasts -- like our mountain biker here -- don to record their feats of fancy. It's been a tale of two quarters for GoPro in its first six months as a public company. GoPro went public at $24 in late June, soaring in subsequent weeks. It peaked in early October, more than quadrupling to hit $98.47. It has gone on to shed more than 40 percent of its value. The wild swings aren't a surprise. GoPro went public with plenty of hype this summer, and valuation concerns were bound to come up after it roared out of the gate. Why was GoPro so hot six months ago? Why has it been so cold this quarter? Let's take a look at the two sides of the GoPro mania. Meet the Hot IPO of 2014 It's easy to see why investors gravitated toward GoPro. We've all seen those breathtaking helmet-mounted high-def videos of skateboarders, skiers and hang gliders, and GoPro is the wearable camera of choice for adrenaline junkies like these. GoPro came to market with the speed of some of its action videos. Revenue more than doubled in 2012, and nearly did so again in 2013 when its top line soared 87 percent to hit $985.7 million. Earnings and operating profits were also on a tear. Another thing that helped GoPro was that it more than lived up to the hype. It posted better-than-expected earnings in its first two quarterly reports as a public company, and first impressions for Wall Street debutantes linger. Investors sometimes stay away from hardware plays, especially in a cutthroat market like video cameras. However, GoPro made it clear at the time of its IPO that its grander goal was to become a media company. It wanted to tap into the growing content created by GoPro users to create a social video platform of its own. It went on to hire Guggenheim Digital Media executive Zander Lurie in November to lead its media division. GoPro was rolling along nicely, but then Mr. Market realized that the stock was growing faster than its decelerating top-line growth. The Wipeout Will Be Televised Valuations matter. At its peak during the first week of October, the stock was trading at nearly 100 times this year's earnings and nearly 80 times next year's profit target. That wouldn't be so rich if the stock was still huffing and puffing at last year's pace, but GoPro's starting to prove mortal. Analysts see GoPro's revenue climbing 36 percent this year, followed by a 24 percent top-line spurt next year. That's the kind of growth that most companies would love to brandish, but it's a more sobering proposition when you're trading at GoPro's multiples. 10 Million Shorted Shares Then there are also folks who are skeptical about its media strategy. Will GoPro's push to become a content hub succeed when GoPro users are perfectly fine uploading their clips on Vimeo or Google's (GOOG) (GOOGL) YouTube? As strong as the GoPro brand may be, is it enough to offset the success of established video-sharing sites and the monetization options for original content on YouTube? There's no shortage of skeptics, and that includes speculators who have shorted more than 10 million shares of GoPro. That's not necessarily a bad thing, especially if a positive development forces them to cover their positions. GoPro investors who got in at the June IPO price aren't complaining. The stock has gone on to more than double despite the swings. Unlike at many companies, where only well-heeled investors get in on a stock's debut, GoPro was considerate enough to its fans to allocate a block of the IPO for individual investors. A strong holiday season could make GoPro a winner in its third quarter as a public company, but the valuation concerns may also end up having the last laugh. Just hit the record button and play along. More from Rick Aristotle Munarriz
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Work Begins on Massive Solar Power Plant in Nevada

AP/John Locher LAS VEGAS -- Construction has begun on a $1 billion solar power generating station in the Mohave Desert that officials say will produce enough electricity to power about 80,000 California homes when it is completed in 2016. The 250-megawatt project, dubbed Silver State South, will capture solar energy with panels spread across almost 4 square miles of federal land south of Las Vegas, according to a fact sheet obtained Friday from a First Solar (FSLR) representative. Executives with Arizona-based First Solar and Florida-based NextEra Energy Resources (NEE) put the cost of the project at $1 billion during a Wednesday ceremony with federal Bureau of Land Management chief Neil Kornze at the site off Interstate 15 near the Nevada-California state line. Kornze said in a statement Friday that since 2009, the BLM has approved more than 50 renewable energy projects around the country. "The Silver State South Solar Project is another step forward in using clean and abundant energy resources to make energy and create good-paying jobs," he said. When completed, it would be the same size as the largest solar project in the state, a 250-megawatt plant that First Solar is building on Moapa Paiute tribal land along I-15 north of Las Vegas. That project broke ground in March. First Solar is building the Silver State South array adjacent to a 25-megawatt Silver State North project the company completed in 2012 on almost 1 square mile of federal land near Primm. A subsidiary of NextEra will own both plants. Silver State North was the nation's first large-scale solar power plant built on public land. It sells power to NV Energy for use in the Las Vegas area. Silver State South will provide power to Southern California Edison under a long-term contract. "Renewable energy sources such as solar power play an important role in the future energy mix in this country," Armando Pimentel, NextEra president and CEO, said in a statement. "We look forward to working with First Solar and Southern California Edison to make this project a reality." Several more solar power projects have been proposed in southern Nevada, where arrays are also under construction in the Eldorado Valley south of Boulder City and outside the Nye County seat of Tonopah. Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed. More from The Associated Press
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Is America’s Richest Family’s Wealth at Risk?

The heirs of Wal-Mart's (NYSE: WMT  ) founder Sam Walton are an American dynasty. The closest thing we have in the United States to an aristocracy, they are the richest family in America, edging out the second-wealthiest family, the Koch Brothers, by a reported $63 billion.

For perspective, if the Walton family wealth were held by one person, that would be the richest person in the world by nearly two-fold; the family's wealth is an estimated $152 billion versus Carlos Slim's reported $80 billion .

And on the surface things look good: the economic engine of that wealth -- Wal-Mart stock -- is sitting near five-year highs. Beneath that, you find the biggest threat to the Walton Family's wealth: complacency.

A logistical powerhouse
Complacency wasn't something that described the Wal-Mart of the past. After a successful retail career, patriarch Sam Walton opened the first Wal-Mart store in 1962. Within 10 years the scrappy retailer added 50 more stores, recorded sales of $78 million, and had its stock added to the New York Stock Exchange.

The victorious cycle continued by a relentless focus on two things: logistical and distribution chain excellence and a ruthless focus on containing costs and passing them on to the customer. The tight and focused supply chain was the disruptor, giving Wal-Mart a competitive advantage. In turn the company would return a portion of those savings to the customer under the "Every Day Low Prices" banner.

Walton's vision culminated in leading the Fortune 500 in 2002. In the decade-plus that's followed, Wal-Mart has fallen no lower than second place.

Disruptor, meet disruption
Being atop the Fortune 500 list is an impressive accomplishment, but let's be fair – it only measures gross revenues, not revenue growth. And in the relative shark tank that is retail, if you aren't moving forward you are slowly dying. Compared to the decade prior, 1992-2002, revenue growth per year from 2002-2014 dropped substantially: 7.3% versus 16.6% -- eventually culminating in a disappointing year-over-year growth of 1.6%. As far as valuations go, the company is still looking to eclipse the market cap established in the early '00s.

There are many reasons for this -- online retailer Amazon and club-giant Costco among others are disrupting Wal-Mart's model. For example, Amazon grew revenue an astonishing 30.7% per year from 2002-2013 whereas Costco grew it 9.5% per year.

To be fair, outside of Amazon and Costco, there's been scant successful innovation in retail since Wal-Mart logistical management. That's especially true when it comes to showrooming. Most innovations focus on product delivery (Amazon's e-retailer model) or revenue capture (Costco's annual-membership warehouse club model). While it is prudent to note that Wal-Mart has its own discount club, Sam's Club, it hasn't been nearly as successful as Costco; Costco's perfected this business model.

There's limits to Wal-Mart's current model
There are limits to Wal-Mart's low-cost business model. Where many articles have been written about Wal-Mart's low wages, it is more prudent to evaluate Wal-Mart's employees from a productivity standpoint. While the acrimonious debate swirls about wages, focusing on what Wal-Mart is getting out of its employees is just as important to the long-term health and vitality of the company. And to be honest, Wal-Mart hasn't been good here.

Wal-Mart 2003 2013

Total Revenue (millions)	$231,577	$476,294
Total Employees (millions)	1	2.2
Revenue per employee	$231,577	$216,497

Source: Revenue:10Ks: Total Employees 2003, 2013

As you can see, Wal-Mart is actually getting less out of each employee than it was in 2003. In the last decade plus, hallmarked by huge productivity gains, Wal-Mart employees are actually less productive than they were in 2003 when measured on a revenue-per-employee standpoint.

Although there are outside factors that could weigh on these results -- like part-time versus full-time mix and international employees versus U.S. -- those don't appear to explain the lack of revenue growth per employee on an inflation-adjusted basis. At the long-run rate of inflation (3%), Wal-Mart employees would need to provide revenue per employee of $311,200 in today's dollars to be as productive -- a figure nearly $100,000 more than today's figures.

That's not to say these individuals aren't hard working, but it does point toward an organization that's complacent in challenging its employees.

Final thoughts
Wal-Mart's built an empire on the back of disruption. The problem with logistical management as a disruptive force is it's eventually replicable. The greatest threat to the Walton Family wealth –much of it in Wal-Mart stock – is a slow slide toward irrelevance.

And while that's hard to imagine right now, there are signs the Waltons -- among other levels of Wal-Mart leadership -- are looking to head in a new direction. Recently, U.S. CEO Bill Simon unexpectedly left the company amid disappointing U.S. store sales for the last five quarters. CEO Doug McMillon is also new, taking the reins on Feb. 1.

Of course, Wal-Mart has 2.2 million ways to change its narrative. Each employee has the potential to add value to the customer's experience. As the largest private employer in the U.S., Wal-Mart has a built-in advantage to grow a sluggish top line. Let's hope these recently appointed executives get the memo … the Waltons have billions on the line.

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Did Apple and IBM just kill BlackBerry?

  BlackBerry crumbled by Apple and IBM NEW YORK (CNNMoney) BlackBerry has had a heck of a year.

The stock is up nearly 40% in 2014 as investors embrace the turnaround strategy from new CEO John Chen.

Now Chen may face his biggest challenge yet: A direct assault from two tech titans.

Apple (AAPL, Tech30) and IBM (IBM, Tech30) announced a partnership that will let Big Blue offer souped-up iPhones and IPads to corporate customers.

Shares of BlackBerry (BBRY, Tech30) plunged nearly 10% Wednesday on the news.

Although BlackBerry is losing the consumer smarpthone battle to Apple, companies like Samsung that sell phones running on Google's (GOOG) Android and even Microsoft, it has remained popular in the IT departments of many corporations and government agencies.

The BlackBerry is still the mobile device of choice for many big businesses, partly due to security reasons. But that too is changing as more companies allow their workers to connect personal devices to corporate networks.

If BlackBerry loses even more share of the small device business, then the company's turnaround may come to a screeching halt.

To Chen's credit, he still has time to get BlackBerry back on track. The company reported an increase in its cash position in its most recent quarter.

Chen is also steering BlackBerry into the connected home and auto markets with its QNX software. And then there's the recent deal that will let BlackBerry 10.3 customers access Android apps on Amazon's (AMZN, Tech30) app store later this fall.

But the big dive in BlackBerry's stock price Wednesday shows just how tenuous the company's situation is. Investors are still nervous ... and with good reason.

IBM and Apple are significant competitors individually. As a team, they are an even more formidable threat. And Wall Street clearly approves of the pairing. Shares of Apple rose more than 1% to a new 52-week high while IBM popped more than 2%.

Perhaps it's time nickname for the two like "Wintel" is for! Microsoft's Windows and Intel. AppBlue? Or maybe iBM?

Whatever you want to call it, it's hefty competition.

Why Immersion (IMMR) Stock Is Up Today

NEW YORK (TheStreet) -- Shares of Immersion Corp. (IMMR) are jumping 7.32% to $13.49 after it announced entering into a multi-year license agreement with Huawei Device Co. Ltd to use Immersion's haptic software, called TouchSense 3000, on Huawei branded mobile devices.

Financial terms of the agreement were not disclosed.

Must Read: Warren Buffett's 25 Favorite Stocks

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

TheStreet Ratings team rates IMMERSION CORP as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation: "We rate IMMERSION CORP (IMMR) a HOLD. The primary factors that have impacted our rating are mixed, some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and notable return on equity. However, as a counter to these strengths, we also find weaknesses including weak operating cash flow and a generally disappointing performance in the stock itself." Highlights from the analysis by TheStreet Ratings Team goes as follows: IMMR's revenue growth has slightly outpaced the industry average of 2.2%. Since the same quarter one year prior, revenues rose by 11.4%. This growth in revenue does not appear to have trickled down to the company's bottom line, displaying stagnant earnings per share. IMMR has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with this, the company maintains a quick ratio of 2.74, which clearly demonstrates the ability to cover short-term cash needs. The net income growth from the same quarter one year ago has exceeded that of the Computers & Peripherals industry average, but is less than that of the S&P 500. The net income increased by 10.5% when compared to the same quarter one year prior, going from $1.69 million to $1.86 million. IMMR has underperformed the S&P 500 Index, declining 6.51% from its price level of one year ago. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time. Net operating cash flow has decreased to $16.44 million or 16.36% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower. You can view the full analysis from the report here: IMMR Ratings Report STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

Stocks Going Ex-Dividend on Wednesday, June 25 (DHR, WDC, More)

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 six big-name stocks going ex-dividend on Wednesday, June 25.

1. Danaher Corp

Danaher Corp (DHR) offers a dividend yield of 0.5% based on Monday’s closing price of $80.33 and the company's quarterly dividend payout of 10 cents. The stock is up 5.08% year-to-date. Dividend.com currently rates DHR as “Neutral” with a DARS™ rating of 3.4 stars out of 5 stars.

2. Western Digital

Western Digital (WDC