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Maverick new book details complexities of finance

Professor Anthony M. Criniti IV offers a fresh look at the science of wealth management in “The Necessity of Finance”

PHILADELPHIA – In “The Necessity of Finance” (ISBN 0988459507), Dr. Anthony M. Criniti IV breaks down the complex details of the financial world into easy-to-digest terms any layman can understand and even master. Finance is a completely separate field from economics and as such, Dr. Criniti sets out to explain real-world topics that investors and “financialists” need to inculcate into their ideological portfolio.

Global wealth accumulation is at its highest levels ever. There are more billionaires and oligarchs living today than at any other time in human history. Yet as the American and global financial system has come under critical scrutiny in recent years, consumers and ordinary citizens are seeking answers about the world of finance. Why is money important? Is it merely ink and paper or digits on a computer screen. Why does finance matter? How might we come to understand its many intricacies which act as a multi-dimensional jigsaw puzzle? The answers will both interest and surprise readers.

“Most of the major theories developed in finance were created by economists, physicists, mathematicians, etc. Finance, although highly interrelated with many other subjects, is a separate field of study that is often confused with others,” says Dr. Criniti. “With world wealth accumulating to its highest point in history, the necessity to understand this subject is more crucial than ever.”

Readers will learn what the difference between money and wealth is and will find answers to many of life’s financial questions. What is risk and return? What kinds of investments exist? What are the different techniques for selecting investments? And what role does ethics play in finance? The author has created a true page-turner able to clarify the definition, purpose and goals of both finance and economics while exploring financial concepts in a straightforward manner.

The Necessity of Finance” is available for sale online at Amazon.com.

About the Author:

Dr. Anthony M. Criniti IV is a former financial consultant and a current professor of finance at several universities.  He earned a PhD in applied management and decision sciences, with a concentration in finance. A native of Philadelphia, he has also received many financially related designations, including CHFC, CLU, REBC, and RHU. Dr. Criniti is an active investor and has traveled the world studying various aspects of finance. He is also the author of the acclaimed finance book, The Necessity of Finance and the newly released The Most Important Lessons in Economics and Finance.

MEDIA CONTACT:

Dr. Anthony M. Criniti IV

E-mail:                                 info@learn-about-finance.com

Web:                                    https://learn-about-finance.com/

REVIEW COPIES AND INTERVIEWS ARE AVAILABLE UPON REQUEST

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Nearly 2 Million American Homeowners Freed From Negative Equity In 2012

Phoenix, Los Angeles and Miami Metros Had Most Homeowners Freed Last Year, According to Zillow; At Least 1 Million Additional Homeowners Nationwide Expected To Be Freed In 2013

SEATTLE, Feb. 21, 2013, Negative equity continued to fall in the fourth quarter of 2012, dropping to 27.5 percent of all homeowners with a mortgage, compared with 31.1 percent one year ago, according to the fourth quarter Zillow® Negative Equity Reporti. Almost 2 million American homeowners were freed from negative equity over the course of the year.

Approximately 13.8 million homeowners with a mortgage were in negative equity, or “underwater,” at the end of the fourth quarter, owing more on their mortgages than their homes are worth. That was down from 15.7 million in the fourth quarter of 2011. American homeowners with a mortgage were collectively underwater by more than $1 trillion at the end of 2012.

In 2012, national home values rose 5.9 percent year-over-year, according to the Zillow Home Value Index (ZHVI)ii, to a median value of $157,400. This jump in home values, coupled with sustained high foreclosure rates, were the main drivers for receding negative equity. Among the nation’s 30 largest metro areas, those with the highest number of homeowners freed from negative equity last year were Phoenix (135,099 homeowners freed in 2012); Los Angeles (72,936 homeowners freed in 2012); Miami-Fort Lauderdale (70,484 homeowners freed in 2012); Dallas-Fort Worth (59,461 homeowners freed in 2012); and Riverside, Calif. (58,417 homeowners freed in 2012).

New this quarter, the Zillow Negative Equity Forecastiii predicts the negative equity rate among all homeowners with a mortgage will fall to at least 25.5 percent by the fourth quarter of 2013, freeing more than 999,000 additional homeowners nationwide. Of the 30 largest metro areas, the majority of these newly freed homeowners are anticipated to come from: Los Angeles (72,696 homeowners freed in 2013); Riverside (62,407 homeowners freed in 2013); Phoenix (43,044 homeowners freed in 2013); Sacramento (33,356 homeowners freed in 2013); and Dallas-Fort Worth (31,434 homeowners freed in 2013).

Zillow forecasts negative equity by applying anticipated appreciation or depreciation rates to a home, according to the most current metro and national Zillow Home Value Forecasts, and by assuming all other factors remain constant.

“As home values continue to rise and more homeowners are pulled out of negative equity in 2013, the positive effects on the housing market will be numerous. Freed from negative equity, homeowners will have more flexibility, and some will likely choose to list their home for sale, helping to ease inventory constraints and moderating sometimes dramatic, demand-driven price increases in some markets,” said Zillow Chief Economist Dr. Stan Humphries . “But negative equity is still very high, and millions of homeowners have a very long way to go to get back above water, even with current robust levels of home value appreciation in most areas. As a result, negative equity will remain a major factor in the market for the foreseeable future.”

These results are from the fourth quarter edition of the Zillow Negative Equity Report, which looks at current outstanding loan amounts for individual owner-occupied homes and compares them to those homes’ current estimated values. Loan data is provided by TransUnion®, a global leader in credit and information management. This is the only report that uses current outstanding loan balances on all mortgages when calculating negative equity. Other reports estimate current outstanding loan balance based on the most recent loan on a property (i.e., the original loan amount at time of purchase or refinance).

Metropolitan Area

Q4 2012: % of Homeowners w/ Mortgages in Negative Equity

# of Homeowners Freed From Negative Equity in 2012

Q4 2013: Forecasted Negative Equity Rate

Minimum # of Homeowners Expected to be Freed From Negative   Equity in 2013iv

UNITED STATES

27.5%

1,908,732

25.5%

999,601

New York

19.4%

17,394

19.1%

6,513

Los Angeles

24.3%

72,936

20.0%

72,696

Chicago

36.9%

41,208

37.3%

N/A

Dallas-Fort Worth,

Texas

24.2%

59,461

21.3%

31,434

Philadelphia

23.8%

1,462

23.1%

7,356

Washington, DC

28.0%

45,207

25.8%

24,911

Miami-

Fort Lauderdale, Fla.

39.6%

70,484

37.0%

23,674

Atlanta

49.5%

49,827

47.9%

17,255

Boston

16.9%

30,495

15.6%

10,765

San Francisco

23.3%

39,496

19.5%

25,776

Detroit

43.4%

57,396

41.4%

17,197

Riverside, Calif.

43.8%

58,417

34.5%

62,407

Phoenix

40.4%

135,099

34.8%

43,044

Seattle

33.5%

32,457

29.9%

23,441

Minneapolis-St. Paul,

Minn.

34.6%

29,518

32.8%

12,808

San Diego

28.3%

31,894

23.4%

22,788

Tampa, Fla.

41.5%

34,359

40.0%

7,775

St. Louis

26.9%

23,348

27.0%

N/A

Baltimore

27.7%

11,529

26.5%

6,265

Denver

20.0%

53,848

18.0%

10,509

Pittsburgh

14.0%

8,767

13.2%

3,403

Portland, Ore.

28.0%

26,355

24.7%

13,799

Sacramento, 

Calif.

41.7%

32,195

32.9%

33,356

Orlando, Fla.

45.3%

32,650

43.3%

7,286

Cincinnati

27.2%

16,034

26.8%

1,830

Cleveland

29.8%

13,818

29.1%

2,965

Las Vegas

59.2%

36,876

56.7%

8,435

San Jose

16.1%

17,330

13.2%

8,062

Columbus

28.8%

19,905

27.7%

3,620

Charlotte

33.0%

13,513

32.9%

325

About Zillow:
Zillow, Inc. (NASDAQ: Z) operates the largest home-related marketplaces on mobile and the Web, with a complementary portfolio of brands and products that help people find vital information about homes, and connect with the best local professionals. In addition, Zillow operates an industry-leading economics and analytics bureau led by Zillow’s Chief Economist Dr. Stan Humphries. Dr. Humphries and his team of economists and data analysts produce extensive housing data and research covering more than 350 markets at Zillow Real Estate Research. The Zillow, Inc. portfolio includes Zillow.com®, Zillow Mobile, Zillow Mortgage Marketplace, Zillow Rentals, Zillow Digs™, Postlets®, Diverse Solutions®, Buyfolio™, Mortech™ and HotPads™. The company is headquartered in Seattle.

Zillow.com, Zillow, Zestimate, Postlets and Diverse Solutions are registered trademarks of Zillow, Inc. Buyfolio, Mortech, HotPads and Digs are trademarks of Zillow, Inc.

TransUnion is a registered trademark of Trans Union LLC.

i The data in the Zillow Negative Equity Report incorporates mortgage data from TransUnion, a global leader in credit and information management, to calculate various statistics. The report includes, but is not limited to, negative equity, loan-to-value ratios, and delinquency rates. To calculate negative equity, the estimated value of a home is matched to all outstanding mortgage debt and lines of credit associated with the home, including home equity lines of credit and home equity loans. All personally identifying information (“PII”) is removed from the data by TransUnion before delivery to Zillow. Overall, this report covers over 800 metros, 2,300 counties, and 22,900 ZIP codes across the nation.

ii The Zillow Home Value Index is the median Zestimate® valuation for a given geographic area on a given day and includes the value of all single-family residences, condominiums and cooperatives, regardless of whether they sold within a given period. The Home Value Index at the national level includes data from over 80 million homes in almost 3,000 counties and over 850 core-based statistical areas. It is expressed in dollars and is for a particular geographic region.

iii The Zillow Home Value Forecast is a conservative estimate of what negative equity rates will be a year from now. To forecast negative equity, we take the current home value of a house and appreciate it by the Zillow Home Value Forecast (ZHVF) for the MSA in which the home is located. In cases where there is no ZHVF available, we use the historical rate of home appreciation, and for metros that don’t have a historical rate of appreciation we use the historical rate of inflation at the national level. For homes that are not located in a metropolitan area, we use the forecasted national rate of appreciation. To calculate the level of home equity a year from now, we use the forecasted home value and the current outstanding debt balance, where we make no assumptions about a homeowner’s debt level a year from now. We also make no assumptions about foreclosure activity in the coming year. Therefore, this forecast is a very conservative one, as homeowners will likely continue to pay down their debt throughout the year and homes will likely continue to be foreclosed on, and both of these factors will contribute to a lower negative equity rate. The Zillow Negative Equity Forecast can therefore be considered a higher bound estimate of negative equity.

iv Some metro areas may be marked “N/A” in this column. Home values are expected to continue to fall in these metros, which will lead to a net increase in the number of homeowners with a mortgage who are in negative equity. While some homeowners in this metro will be freed from negative equity, we expect more homeowners to enter negative equity in the coming year when looking strictly at home value changes and not considering pay downs in mortgage principal or foreclosure activity.

SOURCE:

Zillow, Inc.
http://www.zillow.com

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CoreLogic Releases Q4 2012 Renter Applicant Risk Index Report

—Default Risk Among Renters Decreased Year Over Year—

IRVINE, Calif., Feb. 20, 2013, CoreLogic® (NYSE: CLGX), a leading residential property information, analytics and services provider, today released its fourth quarter 2012 CoreLogic SafeRent® Renter Applicant Risk (RAR) Index Report, formerly known as the Multifamily Applicant Risk (MAR) Index Report. Published quarterly, the RAR Index Report provides market-based benchmarks for evaluating credit quality and risk of default for renters applying for apartment homes in multifamily housing units. The index also includes data from single-family rentals. Using a mean of 100, an index value above 100 indicates decreased risk, and a value below 100 indicates increased risk.

According to the data, the risk of default among renters nationwide decreased year over year in the fourth quarter of 2012 with an index value of 103 compared to the fourth quarter of 2011 with an index value of 101. On a quarter-over-quarter basis, the risk of default increased in the fourth quarter 2012 compared to the third quarter of 2012 when the index value was 106. The increased risk from the third quarter to the fourth quarter of 2012 reflects a riskier applicant pool that is typical in seasonally slower periods of applicant traffic (See Figure 1).

Renter Trends

  • Lower-priced rentals see more significant decreases in rent amounts: Average rent amounts for Class A properties, defined as those with rents greater than $1100, increased 0.3 percent year over year. At the same time, rent amounts for Class B properties, defined as those between $750 and $1100, remained unchanged from one year ago, while rent amounts for Class C properties, defined as less than $750, decreased 0.9 percent year over year.
  • Dual applicants increase: In the fourth quarter of 2012, the number of transactions with two applicants increased across property class. On a year-over-year basis, dual-applicant transactions increased 3.9 percent for Class A properties, increased 2.8 percent for Class B properties and increased 0.3 percent for Class C properties.
  • Applicant income rises: Applicant income in the fourth quarter of 2012 increased an average of 1.7 percent among all property classes year over year and also increased over the previous quarter by .5 percent.
  • Fewer applicants declined: Compared to a year ago, property managers denied fewer applicants in the fourth quarter of 2012. Class A property managers denied 5 percent fewer applicants, Class B managers denied 1.3 percent fewer and Class C managers denied 0.6 percent fewer applicants.

Regional Renter Applicant Risk Index Data

Regionally, the Northeast and West had the highest RAR index value in the fourth quarter of 2012, both at 110, reflecting decreased default risk (see Figure 2). The Midwest had the lowest RAR index value at 98, reflecting increased risk, with a five-point decline from the previous quarter when the value was 103. The increased risk in the Midwest is reflective of increased risk seen in two Midwest Core Based Statistical Areas* (CBSAs) (see Figure 3).

Figure 2: Regional Renter Applicant Risk Index Data

Region

Q4 2012

Q3 2012

Change from Q3 2012 to Q4 2012

Q4 2011

Change from Q4 2011 to Q4 2012

Midwest

98

103

-5

97

1

Northeast

110

113

-3

110

0

South

100

103

-3

97

3

West

110

111

-1

107

3

U.S.

103

106

-3

101

2

The three CBSAs with the largest year-over-year increases in applicant risk were Chicago-Joliet-Naperville, Ill.-Ind.-Wis. (three-point value decline); Cleveland-Elyria-Mentor, Ohio (two-point value decline); and Dallas-Fort Worth-Arlington, Texas (one-point value decline). The CBSAs with the largest year-over-year declines in applicant risk were Denver-Aurora-Broomfield, Colo.; New York-Northern New Jersey-Long Island, N.Y.-N.J.-Pa.; and San Diego-Carlsbad-San Marcos, Calif., all with a four-point value increase (see Figure 3).

Figure 3: Core Based Statistical Area & Renter Applicant Risk Index Deltas

CBSAs With Largest Decreases

Q4 2012

Q4 2011

Change from Q4 2011 to Q4 2012

Chicago-Joliet-Naperville, Ill.-Ind.-Wis.

110

113

-3

Cleveland-Elyria-Mentor, Ohio

98

100

-2

Dallas-Fort Worth-Arlington, Texas

94

95

-1

CBSAs With Largest Increases

Q4 2012

Q4 2011

Change from Q4 2011 to Q4 2012

Denver-Aurora-Broomfield, Colo.

105

101

4

New York-Northern New Jersey-Long Island, N.Y.-N.J.-Pa.

124

120

4

San Diego-Carlsbad-San Marcos, Calif.

124

120

4

NOTE: CBSAs are selected from the Top 50 CBSAs based on   population and applicant volume.

* The CBSAs referred to within the Renter Applicant Risk Index Report may differ from the CBSAs referenced in other CoreLogic data reports. CBSAs are defined by the Office of Management and Budget (OMB) and CoreLogic may provide data either for the overall CBSA or a Metropolitan Division of a CBSA, depending upon the report. The particular CBSA used is identified in the report.

Methodology

The SafeRent Renter Applicant Risk (RAR) Index Report is published quarterly by CoreLogic. The RAR Index is calculated exclusively from applicant-traffic credit quality scores from the CoreLogic SafeRent statistical lease screening model, Registry ScorePLUS® and is based on an analysis of 39,000 properties representing nearly 6 million apartment homes and single-family rentals. The index provides a benchmark trend of national and regional traffic credit quality scores. The index value indicates the relative risk of an applicant pool fulfilling lease obligations. A risk index value of 100 indicates that market conditions are equal to the national mean for the Index’s base period of 2004. A risk index value greater than 100 indicates market conditions with reduced average risk of default relative to the index’s base period mean. A value less than 100 indicates market conditions with increased average risk of default relative to the index’s base period mean. Registry ScorePLUS is the multifamily industry’s only screening model that is both empirically derived and statistically validated. The statistical screening model was developed from historical resident lease performance data to specifically evaluate the potential risk of a resident’s future lease performance. The model generates scores for each applicant indicating the relative risk of the applicant not fulfilling lease obligations.

To receive local or regional renter applicant risk index data or if you have questions, contact CoreLogic SafeRent at smallon@corelogic.com.

About CoreLogic

CoreLogic (NYSE: CLGX) is a leading property information, analytics and services provider in the United States and Australia. The company’s combined data from public, contributory, and proprietary sources includes over 3.3 billion records spanning more than 40 years, providing detailed coverage of property, mortgages and other encumbrances, consumer credit, tenancy, location, hazard risk and related performance information. The markets CoreLogic serves include real estate and mortgage finance, insurance, capital markets, transportation and government. CoreLogic delivers value to clients through unique data, analytics, workflow technology, advisory and managed services. Clients rely on CoreLogic to help identify and manage growth opportunities, improve performance and mitigate risk. Headquartered in Irvine, Calif., CoreLogic operates in seven countries. For more information, please visit www.corelogic.com.

CORELOGIC, the CoreLogic logo, SAFERENT and REGISTRY SCOREPLUS are trademarks of CoreLogic, Inc. and/or its subsidiaries.

SOURCE: CoreLogic

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McDonald’s Global Comparable Sales Decrease 1.9% In January

OAK BROOK, Ill., Feb. 8, 2013, McDonald’s Corporation today announced that global comparable sales decreased 1.9% in January. Performance by segment was as follows:

  • U.S. up 0.9%
  • Europe down 2.1%
  • Asia/Pacific, Middle East and Africa (APMEA) down 9.5%

“McDonald’s is focused on satisfying the needs of each and every customer visiting our restaurants in search of great-tasting food and beverages, outstanding service and everyday value,” said McDonald’s President and Chief Executive Officer Don Thompson. “While January’s results reflect today’s challenging environment and difficult prior year comparisons, I am confident that our unwavering commitment to delivering an exceptional restaurant experience will enhance our brand’s relevance and drive long-term results.”

January comparable sales increased 0.9% in the U.S. driven by a balanced offering of premium, core and compelling value options, including the addition of the new Grilled Onion Cheddar burger to the Dollar Menu. Results for the month also benefited from convenience and restaurant modernization strategies designed to provide customers with a better overall experience.

In Europe, comparable sales decreased 2.1% as positive results in the U.K. and Russia were offset by performance in Germany, France and other markets. Throughout Europe, McDonald’s remains focused on appealing to a broad range of customer preferences with seasonal food events and enhanced value and breakfast offerings along with extended operating hours.

In APMEA, January’s comparable sales decreased 9.5% due to ongoing weakness in Japan and negative results in China due primarily to the shift in timing of Chinese New Year and, to a lesser extent, the residual effects of consumer sensitivity around the recent supply chain issue in the chicken industry, which more than offset positive results in Australia.

Systemwide sales for the month increased 0.3%, or 0.7% in constant currencies. For the month of February, comparable sales will be negatively impacted by approximately 3 percentage points as prior year results included one extra day due to leap year.

Percent   Increase/(Decrease)

Comparable

Systemwide   Sales

Sales

As

Constant

Month ended January   31,

2013

2012

Reported

Currency

McDonald’s Corporation

(1.9)

6.7

0.3

0.7

Major Segments:

U.S.

0.9

7.8

1.9

1.9

Europe

(2.1)

4.0

3.8

0.6

APMEA

(9.5)

7.3

(8.6)

(5.1)

Definitions

  • Comparable sales represent sales at all restaurants, whether operated by the Company or by franchisees, in operation at least thirteen months including those temporarily closed. Some of the reasons restaurants may be temporarily closed include reimaging or remodeling, rebuilding, road construction and natural disasters. Comparable sales exclude the impact of currency translation. Comparable sales are driven by changes in guest counts and average check, which is affected by changes in pricing and product mix. Management reviews the increase or decrease in comparable sales compared with the same period in the prior year to assess business trends.
  • The number of weekdays and weekend days can impact our reported comparable sales. In January 2013, this calendar shift/trading day adjustment consisted of one less Sunday and Monday, and one more Wednesday and Thursday compared with January 2012. The resulting adjustment varied by area of the world, ranging from approximately -0.9% to 0.8%. In addition, the timing of holidays can impact comparable sales.
  • Information in constant currency is calculated by translating current year results at prior year average exchange rates. Management reviews and analyzes business results excluding the effect of foreign currency translation and bases incentive compensation plans on these results because they believe this better represents the Company’s underlying business trends.
  • Systemwide sales include sales at all restaurants, whether operated by the Company or by franchisees. While franchised sales are not recorded as revenues by the Company, management believes the information is important in understanding the Company’s financial performance because these sales are the basis on which the Company calculates and records franchised revenues and are indicative of the financial health of the franchisee base.

Upcoming Communications

The Company plans to release February 2013 sales on March 8, 2013.

McDonald’s is the world’s leading global foodservice retailer with more than 34,000 locations serving more than 69 million customers in 119 countries each day. More than 80% of McDonald’s restaurants worldwide are owned and operated by independent local men and women.

Forward-Looking Statements

This release contains certain forward-looking statements, which reflect management’s expectations regarding future events and operating performance and speak only as of the date hereof. These forward-looking statements involve a number of risks and uncertainties. The factors that could cause actual results to differ materially from our expectations are detailed in the Company’s filings with the Securities and Exchange Commission, such as its annual and quarterly reports and current reports on Form 8-K.

SOURCE:

McDonald’s Corporation

http://www.mcdonalds.com

 

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The Zacks Analyst Blog Highlights: IBM, General Motors, Ford Motor, Nissan Motor and Toyota Motor

CHICAGO, Jan. 23, 2013, Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include IBM (NYSE: IBM), General Motors Company (NYSE: GM), Ford Motor Co. (NYSE: F), Nissan Motor Co. (OTC:NSANY) and Toyota Motor Corp. (NYSE: TM).

Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=5513

Here are highlights from Tuesday’s Analyst Blog:

IBM Finally Beats On the Top

IBM (NYSE: IBM) finally broke a multi-quarter slump in the top line with fourth-quarter revenue of $29.3 billion, which surpassed the Zacks Consensus Estimate of $29.18 billion. Non-GAAP earnings per share of $5.39 improved 14% from last year and beat the Zacks Consensus Estimate by about 2.7%.

For a while now, IBM’s revenue and EPS have been going in different directions, with the former slumping slightly while the latter was able to eke out gains. The top line weakness was attributed to slowing IT spending, which had a big impact on the entire tech sector given IBM’s status as a bellwether.

Today’s quarterly performance by no means signals a rollicking industry for the fourth quarter, but it does suggest some improvement. It could also be a big benefit to earnings season in general, which didn’t inspire much confidence to begin with and hasn’t been that encouraging so far.

Revenue was still down 1% year over year, though was flat when adjusting for currency. It was up 1% excluding divested RSS business adjusting for currency. Meanwhile, IBM’s earnings surprise may be small, but it gets the company back into the green after only matching in the third quarter. Before then, the company had a very impressive record of consecutive EPS surprises.

For the full year, non-GAAP earnings per share of $15.25 was up 13% and ahead of the Zacks Consensus Estimate at $15.09. Revenue was down 2% at $104.5 billion.

For 2013, IBM expects non-GAAP earnings per share of at least $16.70, compared to our estimate of $16.58.

At the moment, IBM is stuck at a Zacks Rank #4 (Sell). Out of 22 total estimates, there have been no upward revisions in the past 60 days, but there have been 5 to the downside. We’ll have to wait and see if today’s quarterly report will be enough to lift the Zacks Rank.

We have always believed that IBM had a good long-term picture, due to its key growth initiatives, strong product pipeline, expansion in emerging markets and continuous acquisitions. The short-term, though, was a question mark. Perhaps this quarter will get it moving in the right direction again.

IBM is certainly moving in the right direction after hours, with shares up approximately 3% at this writing.

GM to Invest $1.5B in North American Plants

General Motors Company (NYSE: GM) revealed that it will pump in $1.5 billion in its North American facilities in 2013 as part of its $8 billion annual investment plan for its global operations for new vehicle development.

GM has invested $10.2 billion in its North American facilities since 2009. In May 2011, the company had also initiated an investment plan of $2 billion, targeting 17 assembly and components plants in 8 states for 18 months in the U.S. The program, intended to create or preserve more than 4,000 hourly and salaried jobs at the plants, has been completed.

Recently, GM also mentioned that it would be able to save thousands of dollars in costs per car in the production of next generation Volt by adopting a more efficient design. The new design will help the company use smaller vehicle components and save weight. However, the company did not reveal the launch date of the plug-in hybrid car.

Recently, at an industry conference in Detroit, GM stated that it expects modest growth in global auto sales in 2013 as improvements in China and the U.S. will be offset by sluggish car sales in Europe. The automaker predicted a 5% rise in industry sales in the U.S. and international market each and European market to shrink 4% in the year.

The company foresees pricing pressures to exist, particularly in China and Europe. However, it expects that moderate market share gain across the world, driven by new vehicle launches will boost its profit margins. GM plans to upgrade 70% of its global lineups by the end of this year.

In North America, GM aims to boost market share and increase vehicle pricing. The company expects to enhance profit margins in the region to 10% in the next three or four years from 8% currently. Meanwhile, the company has targeted break-even results in Europe by 2015. In China, GM intends to improve margins by continuing investing in Cadillac and rolling out its OnStar communications, in-car safety system.

Many automakers started focusing on electric powered vehicles as President Barack Obama ‘s administration set a goal of achieving 1 million battery-powered vehicles on the road by 2015.

In August 2012, Ford Motor Co. (NYSE: F) announced its plan to invest $135 million to develop key components, including advanced battery systems, for its next-generation hybrid-electric vehicles. The automaker is looking forward to doubling its battery-testing capabilities to 160 individual battery-test channels by 2013. It aims to boost development of hybrid-electric vehicles by at least 25%.

Recently, Nissan Motor Co. (OTC:NSANY) announced that it has started the production of all-electric 2013 LEAF at its Smyrna, TN plant. The new LEAF will be produced together with the company’s gasoline-powered products in the plant. The automaker also opened its largest lithium-ion automotive battery plant in Smyrna, which is adjacent to the LEAF assembly facility. The plant will address the company’s goal of making zero-emissions mobility around the world.

Last year, Toyota Motor Corp. (NYSE: TM) had revealed plans to unveil 21 gas-electric hybrid models by 2015, most of them having a similarity with its widely acclaimed Prius. As many as 14 vehicles among these hybrids will be all new.

This apart, Toyota plans to launch a fuel cell vehicle, which runs on hydrogen to produce electricity, by 2015. However, Toyota will launch eQ (iQ EV in the U.S.) in limited numbers due to a conservative view on the global hybrid vehicles market.

GM, a Zacks Rank #3 (Hold) stock, posted a 9.7% fall in earnings to 93 cents per share (excluding special items) in the third quarter of the year from $1.03 in the corresponding quarter a year ago. However, earnings per share in the quarter far exceeded the Zacks Consensus Estimate of 61 cents.

Revenues in the quarter grew 2.5% to $37.6 billion, surpassing the Zacks Consensus Estimate of $36.3 billion. Worldwide sales volume inched up 1.6% to 2.3 million units from 2.2 million units a year ago. However, total market share declined to 11.6% from 12.1% in the third quarter of 2011.

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About Zacks Equity Research

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SOURCE: Zacks Investment Research, Inc.

 

 

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SP500 Earnings Report Database: Netflix, KeyCorp, Pfizer, General Electric, American International Group, and EMC 

HONG KONG, Jan. 25, 2013, EarningForecast.com has issued consensus earnings forecast reports and equity research for the following companies: Netflix (NASDAQ: NFLX), KeyCorp (NYSE: KEY), Pfizer (NYSE: PFE), General Electric (NYSE: GE), American International Group (NYSE: AIG), and EMC (NYSE: EMC).

(Read full report by clicking the link below, you may need to copy and paste the full link to your browser.)

Report Highlights:

Netflix, Inc. (NASDAQ: NFLX): On January 23, Netflix, Inc. (NASDAQ: NFLX) announced fourth-quarter 2012 profit of US$0.13 a share, well above analysts’ estimate of a loss of US$0.12 a share. Revenue for the quarter jumped 10.10% to US$945 million from a year ago, versus the consensus estimate of US$934.12 million. By the end of Thursday’s trading, Netflix shares soared US$43.60 (or 42.22%) to US$146.86 and made a new 52-week high of US$149.17. See NFLX earnings forecast report here.

Read Full Report: http://www.earningforecast.com/PR/012513A/NFLX/Netflix.pdf

KeyCorp (NYSE: KEY): KeyCorp (NYSE: KEY) shares slumped US$0.06 (-0.65%) for the session to US$9.24 on hefty volume of 45.94 million shares, above its average volume of 14.75 million shares. KeyCorp has a market capitalization of US$8.63 billion with price ranged within US$6.80 – US$9.50 over the past 52 weeks. Investors may want to find out where KEY will go from here. Observe comprehensive KeyCorp earnings forecast report here.

Read Full Report: http://www.earningforecast.com/PR/012513A/KEY/KeyCorp.pdf

Pfizer Inc. (NYSE: PFE): Pfizer Inc. (NYSE: PFE) shares began the trading session with a price of US$26.87 and throughout the session made a new 52-week high of US$27.30. At the close of the trading day, the stock finally gained 0.75% to US$26.85. Pfizer shares was traded above average volume with 44.45 million shares traded, 13.86 million shares more than its daily average. Check PFE earnings forecast report below.

Read Full Report: http://www.earningforecast.com/PR/012513A/PFE/Pfizer.pdf

Today EarningForecast.com also observed abnormal trade volume for the following companies; Check out the consensus earnings forecast reports below:

General Electric Company (NYSE: GE):

Read Full Report: http://www.earningforecast.com/PR/012513A/GE/GeneralElectric.pdf

American International Group, Inc. (NYSE: AIG):

Read Full Report: http://www.earningforecast.com/PR/012513A/AIG/AmericanInternationalGroup.pdf

EMC Corporation (NYSE: EMC):

Read Full Report: http://www.earningforecast.com/PR/012513A/EMC/EMC.pdf

About EarningForecast.com:

EarningForecast.com focuses on tracking and monitoring company Earnings Data for top market movers in US stocks market. EarningForecast.com features a team of experienced data analysts striving to provide the investment community with the tools, software, and data necessary to carry out more effective investment research.

Important Disclaimer:
Please visit: EarningForecast.com/disclaimers/index.php for details.

SOURCE: EarningForecast.com

 

 

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