Best Stocks for 2012: Top 5

The stock market is all about risk and returns, you have to be open to lose or gain from your investment.  Since this year has started the stock market has be up and down with the Dow Jones going up one day and then hitting its lowest point the next day.  However, despite the up and down movements from a financial aspect the Dow Jones has been doing pretty well in contrast to 2010 and 2011.  Therefore, when looking to invest in the first time or putting your money in a new investment, try to study the best stocks for the year look at the buying and closing price and most important the current return.  Here are the top 5 stocks for this year to invest in:

• MAKO Surgical (MAKO) - Current Return: 58%; Buy Price: $25.21; Current Price: $39.93; Industry: Medical Equipment

• Capital One (COF) - Current Return: 27%; Buy Price: $42.29; Current Price: $53.90; Industry: Credit Service

• Microsoft (MSFT) - Current Return: 24%; Buy Price: $25.96; Current Price: $32.19; Industry: Software

• Caterpillar (CAT) - Current Return: 18%; Buy Price: $90.60; Current Price: $106.61; Industry: Farm & Construction Machinery 

• Alcoa (AA) - Current Return: 11%; Buy Price: $8.65; Current Price: $9.58; Industry: Aluminum 

This week in Finance as of 4/23/12

Half of new graduates are jobless or underemployed

Courtesy of Half of new graduates are jobless or underemployed (Courtesy of USA TODAY)

Financial Term for the Week:

The Basics of Mergers and Acquisitions

Mergers and acquisitions (M&A) and corporate restructuring are a big part of the corporate finance world. Every day, Wall Street investment bankers arrange M&A transactions, which bring separate companies together to form larger ones. When they're not creating big companies from smaller ones, corporate finance deals do the reverse and break up companies through spin offs, carve-outs or tracking stocks. 

Not surprisingly, these actions often make the news. Deals can be worth hundreds of millions, or even billions, of dollars. They can dictate the fortunes of the companies involved for years to come. For a CEO, leading an M&A can represent the highlight of a whole career. And it is no wonder we hear about so many of these transactions; they happen all the time. Next time you flip open the newspaper’s business section, odds are good that at least one headline will announce some kind of M&A transaction. 

The Main Idea One plus one makes three: this equation is the special alchemy of a merger or an acquisition. The key principle behind buying a company is to create shareholder value over and above that of the sum of the two companies. Two companies together are more valuable than two separate companies - at least, that's the reasoning behind M&A. 

This rationale is particularly alluring to companies when times are tough. Strong companies will act to buy other companies to create a more competitive, cost-efficient company. The companies will come together hoping to gain a greater market share or to achieve greater efficiency. Because of these potential benefits, target companies will often agree to be purchased when they know they cannot survive alone. 

Distinction between Mergers and Acquisitions 
Although they are often uttered in the same breath and used as though they were synonymous, the terms merger and acquisition mean slightly different things. 

When the CEO and top managers of a company decide that they want to do a merger or acquisition, they start with a tender offer. The process typically begins with the acquiring company carefully and discreetly buying up shares in the target company, or building a position. Once the acquiring company starts to purchase shares in the open market, it is restricted to buying 5% of the total outstanding shares before it must file with the SEC. In the filing, the company must formally declare how many shares it owns and whether it intends to buy the company or keep the shares purely as an investment. 

Working with financial advisors and investment bankers, the acquiring company will arrive at an overall price that it's willing to pay for its target in cash, shares or both. The tender offer is then frequently advertised in the business press, stating the offer price and the deadline by which the shareholders in the target company must accept (or reject) it. 


Information provided by: Investopedia.com

Today's Financial News as of 04/11/2012

Asia Stocks Drop on Europe; S&P 500 Futures, Copper Gain.

Courtesy of Bloomberg News (Lynn Thomasson & Yoshiaki Nohara)

Asian stocks fell for a sixth day, the longest run of declines since August, and European equity futures slid after Sony (6758) Corp. posted a loss and concern grew that Europe’s debt crisis is worsening. U.S. equity futures and aluminum rose as Alcoa Inc. reported an unexpected profit.

The MSCI Asia Pacific Index lost 0.8 percent as of 3:01 p.m. in Tokyo. Euro Stoxx 50 Index futures dropped 0.6 percent. Standard & Poor’s 500 Index futures added 0.4 percent following a 1.7 percent slump in the equity gauge yesterday. Ten-year Treasury yields rose two basis points to 2 percent. The Australian dollar rose against all 16 major counterparts. Copper and aluminum gained at least 0.5 percent. Sony and Sharp Corp., Japan’s biggest makers of liquid- crystal-display televisions, posted losses totaling 900 billion yen ($11 billion) as global demand weakened for the first time in six years. The U.S. Federal Reserve is scheduled to release its Beige Book business survey later today and Italy will sell 11 billion euros ($14.4 billion) of bills. Spanish Prime Minister Mariano Rajoy said yesterday that the nation’s future is at stake in its battle to tame surging bond yields.

Instagram’s Systrom Builds $1 Billion Application in Two Years.

Courtesy of Bloomberg News (Ari Levy)

Silicon Valley is one of the few places where a 27-year-old Web entrepreneur can parlay a photo- sharing application with no known source of revenue into $1 billion -- in two years.

Evidence of that came yesterday, when Facebook Inc. (FB) announced plans to buy Instagram, a startup co-founded in 2010 by Kevin Systrom, a Stanford University graduate and former Google Inc. employee. The Instagram app, owned by Burbn Inc., fetched $1 billion in cash and stock after building an audience of more than 30 million people, mostly users of Apple Inc. (AAPL)’s iPhone. That kind of growth was enabled by the spread of social networking and smartphones, and the plummeting costs required to build an Internet company. Instagram has just 13 employees, up from four a year ago, when the app was used by 4 million consumers.

“It’s a massive accomplishment,” said Shervin Pishevar, a managing director at Menlo Ventures in Menlo Park, California. Pishevar backs social-media companies, though he didn’t invest in Instagram. “This is an indicator of what great teams and great products with amazing execution can accomplish in historic amounts of time,” he said.

While the deal may raise concerns about another technology bubble, the price tag is only about 1 percent of Facebook’s projected valuation when the world’s largest social-networking site sells shares to the public. And Chief Executive Officer Mark Zuckerberg, who founded the company in a Harvard University dormitory, understands the model of establishing an audience before generating sales. That’s how he built Facebook.

After a week in the Android store, Instagram is the top- ranked free app not made by Google and No. 3 overall, behind Google voice search and maps. Facebook is eighth.

The app’s success stems in part from how many users give feedback on Instagram photos, Sacca said. A large percentage of pictures get “liked” by other users, he said.

“That engagement creates the dopamine effect that leaves users feeling fantastic and coming back for more,” Sacca said.

Investors, meanwhile, have been lining up to get in the door. That culminated last week in a $60 million financing round, led by Sequoia Capital, which valued the company at $500 million, according to people with knowledge of the funding.

That means Systrom built Instagram’s valuation from zero to $500 million in two years, then doubled it to $1 billion in a week. Despite the odds, Systrom and Krieger always knew they would reach this point, Sacca said.

“They never once doubted that they were building a billion-dollar company,” he said

Popular Companies Stock Portfolio as of 04/09/2012

Popular Companies Stock Portfolio as of April 9, 2012:

Companies Stock Portfolios and Prices can be retrieve by a number of financial websites two popular websites I use are Google Finance and Bloomberg. Therefore, you will enter the companies ticker which is a three letter symbol (i.e WLT), there the companies stock prices will show up such as the closing market price for the company's stock, range, dividend/yield and the company description. Furthermore, these financial websites can provide you with the Dow Jones, S&P 500 and DIS performance.

• The Walt Disney Company (DIS): Range: 41.96 - 42.27; Open: 42.13

The Walt Disney Company, together with its subsidiaries, is a diversified worldwide entertainment company. The Company operates in five segments: Media Networks, Parks and Resorts, Studio Entertainment, Consumer Products and Interactive Media. The Company has a 51% effective ownership interest in Disneyland Paris, a 5,510-acre development located in Marne-la-Vallee, approximately 20 miles east of Paris, France. The Company manages and has a 40% equity interest in Euro Disney S.C.A. The Company holds an 18% equity interest in The Active Network, Inc. The Company owns a 47% interest in Hong Kong Disneyland Resort through Hong Kong International Theme Parks Limited. On December 31, 2009, the Company completed an acquisition of Marvel Entertainment, Inc. (Marvel). On March 31, 2010, the Company acquired Retail Networks Company Limited. On August 27, 2010, the Company completed the acquisition of Playdom, Inc.

• Wal-Mart Stores, Inc (WMT): Range: 60.08 - 60.34; Open: 60.22

Wal-Mart Stores, Inc. (Walmart) operates retail stores. The Company operates in three business segments: Walmart U.S., Walmart International and Sam’s Club. During the fiscal year ended January 31, 2011 (fiscal 2011), the Walmart U.S. segment accounted for 62.1% of its net sales, and operated retail stores in different formats in the United States and Puerto Rico, as well as Walmart’s online retail operations, walmart.com. The International segment consists of retail operations in 14 countries. During fiscal 2011, the segment generated 26.1% of the Company’s net sales. The International segment includes different formats of retail stores and restaurants, including discount stores, supercenters and Sam’s Clubs that operate outside the United States. The Sam’s Club segment consists of membership warehouse clubs in the United States and Puerto Rico, and the segment’s online retail operations, samsclub.com. During fiscal 2011, Sam’s Club accounted for 11.8% of its net sales.

• Bank of America Corp (BAC): Range: 8.83 - 9.04; Open: 9.04

Bank of America Corporation (Bank of America) is a bank and financial holding company. Bank of America serves individual consumers, small and middle market businesses, corporations and Governments. The Company provides a range of banking and nonbanking financial services. It operates in six segments: Deposits, Card Services, Consumer Real Estate Services, Global Commercial Banking, Global Banking & Markets and Global Wealth & Investment Management, with remaining operations recorded in All Other. In December 2011, the Company’s Bank of America Merrill Lynch closed its private banking unit in Brazil. In March 2012, Beach Energy Limited announced that Bank Of America ceased to be a substantial holder in the Company. As of March 21, 2012, Bank of America and its related bodies corporate ceased to be a substantial holder in Platinum Australia Limited. As of March 27, 2012, Bank Of America and its related bodies corporate ceased to be a substantial holder in Beach Energy Limited.

• McDonald's Corporation (MCD): Range: 97.64 - 99.50; Open: 97.74

McDonald’s Corporation franchises and operates McDonald’s restaurants in the global restaurant industry. These restaurants serve a menu at various price points providing value in 119 countries globally. As of December 31, 2011, of the 33,510 restaurants in 119 countries 27,075 were franchised or licensed (including 19,527 franchised to conventional franchisees, 3,929 licensed to developmental licensees and 3,619 licensed to foreign affiliates (affiliates)-primarily Japan) and 6,435 were operated by the Company. McDonald’s menu includes hamburgers and cheeseburgers, Big Mac, Quarter Pounder with Cheese, Filet-O-Fish, several chicken sandwiches, Chicken McNuggets, Snack Wraps, French fries, salads, oatmeal, shakes, McFlurry desserts, sundaes, soft serve cones, pies, soft drinks, coffee, McCafe beverages and other beverages.

Key Financial Terms....

Key Financial Terms

The following are a few financial terms to educate you on what are mostly used within the stock market, banks and investment companies. You will also see these terms through out the blog when financial reports and news are posted.

• Capital Gains: The profit resulting from the difference between the sale price of a share and its purchase or subscription price. If this difference is negative, the loss is called a "capital loss."
• Bond: A negotiable debt security listed on a stock exchange that is redeemable upon maturity and earns interest over a specific period. The price of the bond varies with changes in interest rates.
• Dividend: Portion of the company’s net earnings distributed to shareholders. The amount is voted on by shareholders at the Shareholders’ Meeting after the annual accounts are approved and the allocation of earnings is proposed by the Board of Directors.
• Company Net Income: Net income earned by all Veolia’s companies after deducting minority interests’ profit or loss.
• Earnings per share: Net EPS is the company’s net profit divided by the number of outstanding shares.
• Face Value (Par Value): The face value of a share, also referred to as the par value or nominal value, is the portion of share capital represented by the share. The company’s capital shown on the balance sheet is the face value of the share multiplied by the total number of shares issued.
• Share: A certificate representing ownership of a percentage of a company’s capital. A share may earn a dividend and gives its owner voting rights. Shares may be listed on a stock exchange, but this is not a requirement. Veolia Environnement’s shares are listed on the Euronext Paris and New York stock exchanges
• Growth Stock: The stock of a company whose earnings are growing rapidly and steadily and which therefore has strong potential to increase in value.
• Investment Club: A group of people who collectively manage a securities portfolio into which regular payments are made. Income and capital gains are shared among the members.
• Payout Ratio: The percentage of net income distributed to shareholders in the form of dividends. Veolia calculates this ratio on the basis of the Company’s recurring net income.
• Quorum: Minimum percentage of shares with voting rights that must be present or represented for the Shareholders’ Meeting to take decisions validly.
• Subscription Warrant: A subscription warrant, also simply called a warrant, entitles its holder to purchase a share at a pre-determined price and up to a given date.
• Dow Jones: an indicator of stock market prices; based on the share values of 30 blue-chip stocks listed on the New York Stock Exchange; "the Dow Jones Industrial Average is the most widely cited indicator of how the stock market is doing."
• S&P 500: is a free-float capitalization-weighted index published since 1957 of the prices of 500 large-cap common stocks actively traded in the United States. The stocks included in the S&P 500 are those of large publicly held companies that trade on either of the two largest American stock market exchanges: the New York Stock Exchange and the NASDAQ.

Welcome to Everyday In Finance

To My Visitors, I Welcome You to My Everyday In Finance Blog!

Creator's Biography:

I'm Jillien Mortimer, a undergraduate and international student majoring in Finance at the University of South Alabama. I am currently entering my senior year at the university and look forward to also obtaining my masters in finance and becoming a Certified Financial Analyst. Before entering the University of South Alabama in the Fall 2008, I was employed for 3.5 years at Butterfield Bank (Bahamas) Ltd where I entered the Investment/Mutual Funds department as a filing clerk at the age of 17. While being apart of the company, I was promoted within 1 year and 6 months to a Trainee Jr. Fund Accountant. My responsibilities included assisting the Senior Fund Accountants with monthly, quarterly and weekly NAVs, retrieving stock prices/quotes and company portfolios from Bloomberg and IDC, inputting trades in the Mutual Fund Software (MFACT), preparing timely and accurate responses for all audit queries and ensuring the update of the company'as investment website with NAV information for all respective funds. Furthermore, during the semester of Fall 2011 I took a leave of absent from college due to financial/tuition problems I obtained employment for 4 months at Colina Financial Advisors Ltd and was able to gain knowledge in Pension Administration as a Assistant Pension Administrator (Intern) where I performed duties such as the input of pension contributions, new participants/beneficiaries or update to existing pension participants, assist with the preparation of correspondence letters to plan sponsors and participants, completion of contribution and withdrawal vouchers, and preparation of checks and deposit books.

The Purpose of Everyday In Finance:

The purpose of the Everyday In Finance blog, is to educate and update all young adults in college and high school about the Financial Market. Every year the aspect of technology is growing and as young individuals we should be able to stay on top of what is going on in the financial world locally, nationally and even internationally. I strongly believe that many persons have a right to be educated on the stock market, mutual funds, the preparation of saving for pension and the value of budgeting and saving money. Therefore, the key element of my blog is to target and educate young individuals NOW, about everything Financial in the world such as daily and weekly financial news, tracking top companies stock, and information on well known financial persons. My goal is to keep young people and everyone on top of the business market.

So thus being stated, I hope that my blog become a financial education tool for you and prepare you in for your future.

Kind regards,

Jillien Mortimer