Why Cisco Systems, Tile Shop Holdings, and Millennial Media Plunged Today

Although we don't believe in timing the market or panicking over daily movements, we do like to keep an eye on market changes -- just in case they're material to our investing thesis.

Stock market investors were generally pleased with the congressional testimony that Fed chair nominee Janet Yellen gave today, with new expectations that accommodative monetary policy will continue as long as any hint of economic weakness persists. The Dow and S&P 500 reached new record highs yet again, with Dow 16,000 and S&P 1,800 now within a single percentage point. But Cisco Systems (NASDAQ: CSCO  ) , Tile Shop Holdings (NASDAQ: TTS  ) , and Millennial Media (NYSE: MM  ) all missed the record run, falling by more than 10% each.

Cisco Systems dropped 11% following its disappointing earnings report last night. Missing revenue estimates for the October quarter didn't distinguish Cisco from a number of other suffering tech giants lately, but guidance for a steep 9% plunge in year-over-year revenue in the current quarter showed just how serious the situation is for the networking giant. As Fool contributor Anders Bylund noted earlier today, rival Alcatel-Lucent's (NYSE: ALU  ) deal to sell networking equipment to Chinese wireless giant China Mobile might have represented a missed opportunity for Cisco.

Tile Shop took a 39% hit as the specialty tile seller faced allegations from Gotham Research that it boosted earnings by using a related-party supplier to obtain inventory at cost. Tile Shop responded by denying the allegations and suspending its relationship with the supplier in question. The allegations only highlight the difficulties in assessing whether solid growth-story stocks are too good to be true.

Best Performing Companies To Own In Right Now

Millennial Media fell 12%. The mobile-ad company saw revenue growth slow to 18% in its most recent quarterly report, with margins slipping and a jump in overhead costs only allowing the company to break even for the quarter. With high aspirations to go up against the biggest names in the mobile advertising space, Millennial Media will need to reaccelerate its growth in order to have a shot at entering the big leagues.

 

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Amazon starts Sunday delivery with US Postal Se…

Amazon.com unveiled a new partnership with the U.S. Postal Service to deliver online orders from the world's largest Internet retailer on Sunday for the first time.

The service started this weekend in the Los Angeles and New York metropolitan areas and Amazon plans to expand it to a large portion of the U.S. population in 2014, including Dallas, Houston, New Orleans and Phoenix.

Amazon is not charging extra for the new service, so members of the company's popular Prime service will be able to buy products on Friday and get them by Sunday for free. The service also applies to non-Prime members, who can get free five to eight-day shipping on orders of at least $35 (up from $25 previously).

Amazon has been spending billions of dollars building new warehouses around the world so it can deliver products more quickly. The company hopes that adding Sunday as a delivery option will generate more sales.

"The three big pieces of growth for us are selection, lower prices and speed," said Dave Clark, vice president of worldwide operations and customer service. "Adding an additional day is all about delivery speed. An Amazon customer can order a backpack and a Kindle for their child and be packing it up on Sunday for school on Monday."

The deal is also a welcome new source of revenue for the financially struggling U.S. Postal Service, which has been trying tap into the growth of online shopping.

A package waits to be sorted for shipment at the Friendship Station post office in Washington, DC Monday, December 15, 2003. The 20016 zip code post office is traditionally one of the busiest in the DC area. December 15 is statistically one of the busiest days for package drop off at the USPS. (Photo by Brendan Smialowski/Getty Images) ORIG FILE ID: 2812698(Photo! : Brendan Smialowski Getty Images)

"It will certainly help. The fastest growing segment is the package business," Postmaster General Patrick Donahoe said. "The future of package delivery is a seven-day-a-week schedule. We've got the capacity to do it."

The postal service expects to deliver 420 million packages this holiday season, a 12% increase over last year, but it is in a precarious financial condition. The organization lost $15.9 billion in its last fiscal year and expects a loss of $6 billion this year.

In September, the postal service said it would seek to raise the price of a First-Class stamp from 46 cents to 49 cents. That price hike, which would kick in Jan. 26, and increases for postcards and international mail would generate $2 billion in revenue, it said.

Amazon is increasingly delivering its own packages, through new services such as AmazonFresh, its online grocery business. The company will also start delivering packages itself in some parts of London in coming weeks, Clark said.

However, the company still needs carriers such as USPS, United Parcel Service and FedEx to help it cover the so-called last mile to most people's doorsteps. And the USPS is the only delivery service that reaches every address in the nation – 152 million homes, businesses and post office boxes.

"We are leveraging our technology and infrastructure to get packages to USPS so they can create an incremental day of package delivery," Clark said. "This helps them and it helps our service too."

Benzinga Weekly Preview: FOMC Meeting Closely Watched

It will be a busy week for economic releases in the US, with the FOMC meeting stealing the spotlight. People will be looking for forward guidance that will help shed some light on the bank's tapering timeline.

With so much having happened since the central bank's last meeting, investors will be interested to know how the bank has changed its forecast and whether it plans to continue with its easy money policies.

Key Earnings Reports

Next week investors will be waiting for several key earnings reports including Apple Inc. (NASDAQ: AAPL), Facebook, Inc. (NASDAQ: FB), Nokia Corporation (NYSE: NOK), MetLife, Inc. (NYSE: MET), and Mastercard Incorporated (NYSE: MA).

Apple Inc.

Apple is expected to report third quarter EPS of $7.88 on revenue of $36.76 billion, compared to last year's EPS of $8.67 on revenue of $35.97 billion.

The analyst team at Goldman Sachs has a Buy rating on Apple with a price target of $560.00 on October 23. After viewing the company's new product line and previewing its new free software Goldman Sachs decided to maintain its Buy rating and keep the 12-month price target fixed.

"Largely due to the large form-factor iPad upgrade and the company's higher price points for the Retina iPad mini, our overall iPad ASPs increase and units decrease more modestly. As a result of these changes, for FY2014, we are now looking for revenues and EPS of $185.19 billion and $44.35, versus $182.7 billion and $44.11 previously (CY2014 EPS moves to $46.68 from $46.51). Overall, we believe Apple's recent iPhone refresh is trending better than expected (with a greater mix shift towards the 5s as well), and we believe the new iPads can reinvigorate Apple's tablet revenue and profit momentum in coming quarters. We reiterate our Buy rating and 12-month target price of $560."

Also on the 23, Morgan Stanley has an Overweight rating on Apple with a $540.00 price target and said that the company's new and improved iPads coupled with the iPhone's new broader prices will likely help stabilize revenue growth.

"At over 50% of revenue and 65% of gross profit dollars, the iPhone remains the key upside driver after a successful 5s/iOS7 launch. Newly announced iPad Air, iPad Mini w/ Retina, MacBook, and Mac Pro help stabilize the remainder of the business, particularly after we de-risked estimates last month."

Facebook, Inc.

Facebook is expected to report third quarter EPS of $0.18 on revenue of $1.89 billion, compared to last year's EPS of $0.12 on revenue of $1.26 billion.

The analyst team at Wedbush has an Outperform rating on Facebook and increased its 12 month price target to $58.00. Facebook's recently updated algorithm for advertisements will likely help the company improve target advertising on the site and help attract advertisers.

"Facebook entered Q3 with positive ad momentum. Over 1mm advertisers appeared on the site in Q2, doubling the prior year, with the number of marketers using Customer Audiences more than doubling q-o-q. News Feed ads had a median return of almost double that of non-News Feed ads, and we expect recent algorithm tweaks to increase relevancy. Facebook recently announced objective based ad buying and reporting, improved Custom Audiences through retargeting, and availability to all advertisers regardless of size. Instagram announced ads will begin to show up in US feeds. These initiatives should prolong ad strength."

Topeka Capital Markets has a Buy rating on Facebook with a price target of $60.00 on October 25. The company cited Instragram's announcement that it plans to launch and advertising program at the end of October as reason for its optimistic rating.

"Instagram announced that it plans to launch a sample ad next week. The ad will be labeled "Sponsored" at the top right of the graphic or video and users will be able to like, comment, and hide less interesting ads and provide feedback. Maintain Buy."

Merck & Company, Inc.

Merck & Company is expected to report third quarter EPS of $0.88 on revenue of $11.19 billion, compared to last year's EPS of $0.95 on revenue of $11.49 billion.

The analyst team at Bank of America has a Buy rating on Merck & Co. with a $53.00 price objective on October 21.  Bank of America noted that the company would likely face several headwinds, however said Merck will likely manage them effectively.

"We have previewed the prospects for 3Q (September) results for MRK. Our 3Q13 EPS estimate of $0.87 is in line with consensus. Looking further ahead, MRK's top line continues to face a number of headwinds for the remainder of 2013 including lost revenues through patent expiries (e.g. Singulair), FX headwinds (we estimate -3% hit), delayed launches (Bridion, suvorexant) and competitive pressures on key franchises (e.g. DPP4 market growth continues to slow). We would highlight that we are still bullish on MRK and view these short term pressures as manageable and not in conflict with our Buy thesis at current levels"

Nokia Corporation

Nokia is expected to report third quarter EPS of $0.00 on revenue of $7.83 billion, compared to last year's loss of $0.09 per share on revenue of $9.05 billion.

Societe Generale has a Buy rating on Nokia with a €6.20 price target on October 18. The firm took into account the upcoming sale of Nokia's handset division to Microsoft while calculating forecasts.

"Nokia will announce its Q3 2013 results on 29 October. After the announcement of the proposed sale of Nokia's handset division to Microsoft in September, the importance of Nokia's handset division to investors is substantially lower. We have assumed the sale goes ahead as planned in Q1 2014 and have removed the business from our future forecasts (detailed numbers are shown later). We will therefore be focusing on the three remaining businesses. However, in terms of disclosure, we understand that Nokia will not be changing its presentation. We are therefore looking for turnover of €6.1bn."

Mastercard Incorporated

Mastercard is expected to report EPS of $6.92 on revenue of $2.13 billion, compared to last year's EPS of $6.17 on revenue of $1.92 billion.

Oppenheimer maintained its Outperform rating on Mastercard and raised its price target to $750.00, however noted that the firm's analysts preferred Visa.

"Ahead of 3Q:CY13 earnings we affirm our Outperform ratings for Visa and MasterCard as intra-quarter volumes and broad spending/volume indicators remain healthy. Additionally, the intermediate-term outlooks for both remain encouraging. Shareperformance remains strong, notwithstanding periodic volatility from regulatory and/or litigation concerns (most recently a district court ruling against the Federal Reserve's interpretation of Durbin legislation). We expect another strong quarter for each, and for shares to directionally appreciate with earnings growth over the intermediate term. We continue to prefer V to MA over the intermediate term but wouldn't preclude its relative discount persisting until Durbin 2.0 (appellate process is under way) is clarified. We raise our PT for V to $225 and for MA to $750."

Morgan Stanly has an Overweight rating on Mastercard with a price target of $800.00, citing the company's potential growth in emerging markets.

"Fundamental growth potential remains strong and we believe the company can continue to generate 20%+ EPS growth over the next several years. Growth potential in underpenetrated emerging markets could be aided by increased adoptions of mobile/smartphones. Regulatory risks in Europe appears manageable, though will take a while to play out. Cash generation capability allows for continued share-buybacks."

Economic Releases

Investors will be looking to the UK for more clues about whether or not the UK is heading towards a housing bubble. Mortgage approvals will be closely watched as the data will likely prove that the region's inflating house prices are not cause for concern.

In Europe, unemployment figures are likely to remain fixed at 12 percent. The region's improving economic growth will likely take time to filter down to companies and make a dent in the unemployment rate.

Daily Schedule

Monday

Earnings Releases Expected: Herbalife LTD. (NYSE: HLF), Apple Inc. (NASDAQ: AAPL), Biogen Idec Inc. (NASDAQ: BIIB), Merck & Company, Inc. (NYSE: MRK) Economic Releases Expected: South Koran current account, US pending home sales, US industrial production, Italian business confidence.

Tuesday

Earnings Expected From: Waste Management, Inc. (NYSE: WM), Johnson Controls, Inc. (NYSE: JCI), Electronic Arts Inc. (NASDAQ: EA), LinkedIn Corporation (NYSE: LNKD), Nokia Corporation (NYSE: NOK) Economic Releases Expected:  US consumer confidence, US PPI, Canadian PPI, British mortgage approvals and consumer credit, French consumer confidence

Wednesday

Earnings Expected From: Marriott International (NYSE: MAR), MetLife, Inc. (NYSE: MET), Facebook, Inc. (NASDAQ: FB), Garmin Ltd (NASDAQ: GRMN), Ryland Group, Inc. (NYSE: RYL) Economic Releases Expected: British consumer confidence, New Zealand Interest rate decision, US FOMC meeting announcement, German CPI, US GPD, US core CPI, US nonfarm employment change

Thursday

Earnings Expected From: Barrick Gold Corporation (NYSE: ABX), Newmont Mining Corporation (NYSE: NEM), Mastercard Incorporated (NYSE: MA), Mylan, Inc (NASDAQ: MYL), Time Warner Cable Inc. (NYSE: TWC) Economic Releases Expected: Chinese manufacturing PMI, South Korean trade balance, US Personal income, Italian PPI, eurozone unemployment rate, French consumer spending, Spanish current account

Friday

Earnings Expected From: Chevron Corporation (NYSE: CVX), OM Group, Inc. (NYSE: OMG), Public Storage (NYSE: PSA) Economic Releases Expected:  US ISM manufacturing index, Canadian manufacturing PMI, British manufacturing PMI, Norwegian unemployment rate

Posted-In: Bank Of England Federal ReserveNews Eurozone Commodities Previews Global Economics Federal Reserve After-Hours Center Markets Trading Ideas Best of Benzinga

(c) 2013 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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4 Stocks Under $10 Moving Higher

DELAFIELD, Wis. (Stockpickr) -- At Stockpickr, we track daily portfolios of stocks that are the biggest percentage gainers and the biggest percentage losers.

>>5 Stocks Set to Soar on Bullish Earnings

Stocks that are making large moves like these are favorites among short-term traders because they can jump into these names and try to capture some of that massive volatility. Stocks that are making big-percentage moves either up or down are usually in play because their sector is becoming attractive or they have a major fundamental catalyst such as a recent earnings release. Sometimes stocks making big moves have been hit with an analyst upgrade or an analyst downgrade.

Regardless of the reason behind it, when a stock makes a large-percentage move, it is often just the start of a new major trend -- a trend that can lead to huge profits. If you time your trade correctly, combining technical indicators with fundamental trends, discipline and sound money management, you will be well on your way to investment success.

>>5 Dividend Stocks That Want to Pay You More

With that in mind, let's take a closer look at a several stocks under $10 that are making large moves to the upside today.

ValueVision Media

ValueVision Media (VVTV) is a multichannel electronic retailer that markets, sells and distributes products to consumers through television, telephones, online, mobile and social media. This stock closed up 4.4% to $5.82 in Tuesday's trading session.

Tuesday's Range: $5.78-$6.06

52-Week Range: $1.62-$6.35

Tuesday's Volume: 553,000

Three-Month Average Volume: 330,511

From a technical perspective, VVTV gapped sharply higher here and broke out above some near-term overhead resistance at $5.64 with above-average volume. This move is quickly pushing shares of VVTV within range of triggering a major breakout trade. That trade will hit if VVTV manages to take out Tuesday's high of $6.06 to $6.20, and then once it clears its 52-week high at $6.35 with high volume.

Traders should now look for long-biased trades in VVTV as long as it's trending above Tuesday's low of $5.78 and then once it sustains a move or close above those breakout levels with volume that's near or above 330,511 shares. If that breakout hits soon, then VVTV will set up to enter new 52-week-high territory above $6.35, which is bullish technical price action. Some possible upside targets off that breakout are $7.50 to $8.50.

Coronado Biosciences

Coronado Biosciences (CNDO) is a biopharmaceutical company focused on the development of novel immunotherapy biologic agents for the treatment of autoimmune diseases and cancer. This stock closed up 3.7% to $1.65 in Tuesday's trading session.

Tuesday's Range: $1.60-$1.74

52-Week Range: $1.25-$12.70

Tuesday's Volume: 2.44 million

Three-Month Average Volume: 1.35 million

From a technical perspective, CNDO spiked higher here right above some near-term support at $1.50 with above-average volume. This stock recently formed a double bottom chart pattern at $1.27 to $1.25. Following that bottom, shares of CNDO have started to uptrend and move within range of triggering a major breakout trade. That trade will hit if CNDO manages to take out Tuesday's high of $1.74 to more near-term overhead resistance at $1.91, and then once it takes out its gap down day high from October at $2.16 with high volume.

Traders should now look for long-biased trades in CNDO as long as it's trending above some near-term support at $1.50 or at $1.42 and then once it sustains a move or close above those breakout levels with volume that hits near or above 1.35 million shares. If that breakout hits soon, then CNDO will set up to re-fill some of its previous gap down zone from October that started near $7.

Affymetrix

Affymetrix (AFFX) is engaged in the development, manufacture, sale and service of consumables and systems for genetic analysis in the life sciences and clinical healthcare markets. This stock closed up 3.3% to $8.24 in Tuesday's trading session.

Tuesday's Range: $7.95-$8.29

52-Week Range: $3.05-$8.29

Thursday's Volume: 872,000

Three-Month Average Volume: 1.25 million

From a technical perspective, AFFX spiked higher here into new 52-week-high territory above some near-term overhead resistance at $8.23 with decent upside volume. This stock has been uptrending strong for the last four months, with shares soaring higher from its low of $3.70 to its intraday high of $8.29. During that uptrend, shares of AFFX have been consistently making higher lows and higher highs, which is bullish technical price action.

Traders should now look for long-biased trades in AFFX as long as it's trending above Tuesday's low of $7.95 or above more near-term support at $7.79 and then once it sustains a move or close above its new 52-week high at $8.29 with volume that hits near or above 1.25 million shares. If we get that move soon, then AFFX will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that move are $10 to $11.

Transportadora de Gas del Sur SA

Transportadora de Gas del Sur SA (TGS) is an Argentina-based company engaged in the exploitation, distribution and commercialization of natural gas. This stock closed up 8.8% to $2.47 in Tuesday's trading session.

Tuesday's Range: $2.20-$2.48

52-Week Range: $1.30-$2.93

Thursday's Volume: 482,000

Three-Month Average Volume: 194,620

From a technical perspective, TGS ripped sharply higher here back above its 50-day moving average of $2.31 with above-average volume. This move also pushed shares of TGS into breakout territory, since the stock cleared some near-term overhead resistance at $2.40. Market players should now look for a continuation move higher in the short-term if TGS can manage to take out Tuesday's high of $2.48 with strong volume.

Traders should now look for long-biased trades in TGS as long as it's trending above Tuesday's low of $2.20 and then once it sustains a move or close above $2.48 with volume that hits near or above 194,620 shares. If we get that move soon, then TGS will set up to re-test or possibly take out its next major overhead resistance levels at $2.70 to its 52-week high at $2.93. Any high-volume move above $2.93 to $2.98 will then give TGS a chance to tag $3.25 to $3.50.

To see more stocks that are making notable moves higher today, check out the Stocks Under $10 Moving Higher portfolio on Stockpickr.

-- Written by Roberto Pedone in Delafield, Wis.

RELATED LINKS:

>>5 Retail Trades to Take Before Black Friday

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>>4 Stocks Rising on Unusual Volume

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.

1 Dividend Stock Winning on Cheap Natural Gas

Dominion Resources (NYSE: D  ) did the unthinkable this week, requesting a rate decrease from local regulators. But the utility knows what it's doing, and this latest move makes a lot of sense for its long-term strategy. Here are three reasons why.

1. Higher rates don't always equal higher profits
Dominion's Virginia Power subsidiary is a regulated unit. Its profits are strictly monitored, and the utility isn't allowed to make a single cent off charging more for fuel than its actual cost. Dominion's latest request to lower fuel rates by about 3.3% isn't cutting into the utility's profits -- it's just ensuring there's no financial finger-pointing when regulators comb over Dominion's books for any hidden earnings.

The new rate would cut an average customer's monthly bill by $3.70, resulting in $140 million in savings, a sizable chunk of the average $2 billion the company usually spends on fuel every year. Rather than backtrack off high bills later in the year, Dominion pre-emptively filed the request seven months early.

But for customers, rates are rates, and not all utilities are in a position to pass on savings. While Dominion has been able to capitalize on cheaper and cheaper natural gas from the Marcellus region, Floridians are feeling the squeeze.

Starting in 2014, Duke Energy's (NYSE: DUK  ) Florida subsidiary wants its customers to pay around 7% more for their electricity. For the average user, that equates to more than $8 a month added on to their current bill and includes a charge of $0.89 per month to help the company recover from the retirement of its Crystal River nuclear plant.

Around the same time, TECO Energy's (NYSE: TE  ) Tampa Electric utility requested an even larger average $11.68 bill boost, but only around $1.28 of that accounts for fuel costs. TECO has been behind the times on its return on equity (the single-most important investment indicator for regulated utilities), and previously expected its ROE to clock in at less than 9% for 2013. But TECO's request was approved in September, and the company can now enjoy 10.25% ROE off its 5.5% increase in regulated revenue.

2. More customers always mean more profit
While Duke has had to add on customer costs it can't profit from, Dominion's rate decrease should translate directly to happier customers at no sacrifice to shareholders. All things equal, happy customers use more product and attract other customers. If Dominion's rate decrease is enough to increase average use or add on more customers, its absolute ROE will expand regardless of fuel expenses.

3. Making nice with regulators is smart
Like it or not, electricity rates are political and economic tools. Regulators can reject rate increases if they think it'll slow the economy, if they believe a utility is asking for more than it deserves, or if it would somehow reflect badly on their regulatory body. For this reason, the smartest utilities pick their battles, requesting reasonable rates when the time is right -- and holding off when it's not. Dominion's request today could give it good grace down the road, when the company needs to add on costs for other reasons.

Regulation elation
The world of regulated utilities is increasingly complex and volatile. The energy sector is in a major shakedown phase, and even stalwarts like utilities aren't as stable as they once were. Dominion's latest move puts it in a better place to react to the unknown future of its sector, and other companies would do well to follow suit. If they can.

Hot Energy Stocks To Invest In Right Now

Another energy leader
There are many different ways to play the energy sector, and The Motley Fool's analysts have uncovered an under-the-radar company that's dominating its industry. Just like Dominion's win in the Marcellus region, this company is a leading provider of equipment and components used in energy operations and is poised to profit in a big way from it. To get the name and detailed analysis of this company that will prosper for years to come, check out the special free report: "The Only Energy Stock You'll Ever Need." Don't miss out on this limited-time offer and your opportunity to discover this under-the-radar company before the market does. Click here to access your report -- it's totally free.

Top 10 Blue Chip Stocks To Own Right Now

Stocks took no time getting back to work after the long weekend today as the Dow Jones Industrial Average (DJINDICES: ^DJI  ) was flying out of the gate this morning. The blue chips were up more than 200 points before 10:30 a.m., but cooled off later in the day to finish up 106 points, or 0.7%. The gains were driven by two key pieces of economic data showing strong jumps and central banks in Europe and Japan indicating that lax monetary policies will remain in place. The gains were enough to give the Dow another all-time closing high.

Coming out before markets opened, the Case-Shiller 20-City Index showed the biggest gain in home prices in seven years, jumping 10.9% in March from a year ago, ahead of expectations of 10.2% gain. Though the news is two months old, it shows that the spring home-buying season has added further fuel to the housing recovery. Prices in the west including Phoenix, Las Vegas, and San Francisco grew the fastest.

Later in the morning, the consumer confidence report from the Conference Board showed an increase from 68.1 in April to 76.2 in May, easily topping projections of 72.5. The rating was the highest for the month of May since before the recession and its measurement of consumer attitudes hit its highest mark since February 2008.

Top 10 Blue Chip Stocks To Own Right Now: Chevron Corporation(CVX)

Chevron Corporation, through its subsidiaries, engages in petroleum, chemicals, mining, power generation, and energy operations worldwide. It operates in two segments, Upstream and Downstream. The Upstream segment involves in the exploration, development, and production of crude oil and natural gas; processing, liquefaction, transportation, and regasification associated with liquefied natural gas; transportation of crude oil through pipelines; and transportation, storage, and marketing of natural gas, as well as holds interest in a gas-to-liquids project. The Downstream segment engages in the refining of crude oil into petroleum products; marketing of crude oil and refined products primarily under the Chevron, Texaco, and Caltex brand names; transportation of crude oil and refined products by pipeline, marine vessel, motor equipment, and rail car; and manufacture and marketing of commodity petrochemicals, plastics for industrial uses, and fuel and lubricant additives. It a lso produces and markets coal and molybdenum; and holds interests in 13 power assets with a total operating capacity of approximately 3,100 megawatts, as well as involves in cash management and debt financing activities, insurance operations, real estate activities, energy services, and alternative fuels and technology business. Chevron Corporation has a joint venture agreement with China National Petroleum Corporation. The company was formerly known as ChevronTexaco Corp. and changed its name to Chevron Corporation in May 2005. Chevron Corporation was founded in 1879 and is based in San Ramon, California.

Advisors' Opinion:

• [By Sarfaraz A. Khan]

  The world�� largest offshore drilling contractor and one of the leading drilling management services providers Transocean (RIG) has joined the coveted S&P-500 Index on Monday. The company has replaced the struggling PC manufacturer Dell. This comes just a few days after Transocean announced a five-year contract with Chevron (CVX) to construct a new state-of-the art ultra-deepwater drillship. The delivery of the vessel is expected in the second quarter of 2016. The vessel will require investment of $725 million and will bring $1.1 billion as revenues. The construction of the drillship is expected to begin in fourth quarter of 2014 in Okpo, South Korea, where the company has a long history of operations. It has developed five enterprise-class drill ships at that facility and it currently has six other ultra-deepwater rigs under construction.
  

• [By John Divine]

  Lastly, Chevron (NYSE: CVX  ) , one of just six blue chip decliners, fell 0.8% on Thursday. The energy titan is working toward a deal with Argentina's YPF to develop the Vaca Muerta basin, thought to be one of the two or three largest shale oil and gas reservoirs in the world. But with all that potential reward comes some geopolitical risk, and a hefty investment, which could approach $15 billion in time.

Top 10 Blue Chip Stocks To Own Right Now: Visa Inc.(V)

Visa Inc., a payments technology company, engages in the operation of retail electronic payments network worldwide. It facilitates commerce through the transfer of value and information among financial institutions, merchants, consumers, businesses, and government entities. The company owns and operates VisaNet, a global processing platform that provides transaction processing services. It also offers a range of payments platforms, which enable credit, charge, deferred debit, debit, and prepaid payments, as well as cash access for consumers, businesses, and government entities. The company provides its payment platforms under the Visa, Visa Electron, PLUS, and Interlink brand names. In addition, it offers value-added services, including risk management, issuer processing, loyalty, dispute management, value-added information, and CyberSource-branded services. The company is headquartered in San Francisco, California.

Advisors' Opinion:

• [By Matt Thalman]

  After losing 1.92%, Visa (NYSE: V  ) became the Dow's third worst stock to own last week. Once again, the move comes after the company reported earnings. While on the surface Visa's results were impressive -- revenue up 8%; earnings up 20%, increased dividend; announcement of a bigger share buyback -- the stock fell on Wednesday after the report came out. One likely cause is that investors were looking for slightly more from the company. For one thing, client incentives rose 20% during the quarter, which put a damper on revenue growth and made the earnings increase look less impressive. High expectations can mean price loses from time to time in the short run, but that shouldn't drive investors away from strong long-term companies, such as Visa. �

• [By Ben Levisohn]

  No really. Don’t call it a comeback. U.S. stocks tried with all its might to finish the day in positive territory, but in the end it could not overcome big drops in stocks like Visa (V) and JPMorgan Chase�(JPM).

• [By Lennox Yieke]

  In light of this, payments bigwigs Visa (NYSE: V  ) and MasterCard (NYSE: MA  ) have increased their presence in the continent. Not only have Visa and MasterCard increased issuance of plastic money, but they have also made bold mobile money initiatives. Could this spur the next round of prolonged growth for the two bigwigs?

Top 5 China Stocks To Own Right Now: Colgate-Palmolive Company(CL)

Colgate-Palmolive Company, together with its subsidiaries, manufactures and markets consumer products worldwide. It offers oral care products, including toothpaste, toothbrushes, and mouth rinses, as well as dental floss and pharmaceutical products for dentists and other oral health professionals; personal care products, such as liquid hand soap, shower gels, bar soaps, deodorants, antiperspirants, shampoos, and conditioners; and home care products comprising laundry and dishwashing detergents, fabric conditioners, household cleaners, bleaches, dishwashing liquids, and oil soaps. The company offers its oral, personal, and home care products under the Colgate Total, Colgate Max Fresh, Colgate 360 Advisors' Opinion:

• [By Travis Hoium]

  Colgate-Palmolive
  Toothpaste and toothbrushes may not be exciting business, but it's consistent and consumers tend to develop habits they rarely break. Once they find a toothpaste brand they like, it could be years before they try another one. That leads to another incredibly consistent business for Colgate-Palmolive (NYSE: CL  ) , one that has paid back investors with a dividend since 1895. �

Top 10 Blue Chip Stocks To Own Right Now: Philip Morris International Inc(PM)

Philip Morris International Inc., through its subsidiaries, engages in the manufacture and sale of cigarettes and other tobacco products in markets outside of the United States. Its international product brand line comprises Marlboro, Merit, Parliament, Virginia Slims, L&M, Chesterfield, Bond Street, Lark, Muratti, Next, Philip Morris, and Red & White. The company also offers its products under the A Mild, Dji Sam Soe, and A Hijau in Indonesia; Diana in Italy; Optima and Apollo-Soyuz in the Russian Federation; Morven Gold in Pakistan; Boston in Colombia; Belmont, Canadian Classics, and Number 7 in Canada; Best and Classic in Serbia; f6 in Germany; Delicados in Mexico; Assos in Greece; and Petra in the Czech Republic and Slovakia. It operates primarily in the European Union, Eastern Europe, the Middle East, Africa, Asia, Canada, and Latin America. The company is based in New York, New York.

Advisors' Opinion:

• [By Ben Levisohn]

  Phillip Morris (PM) gained 2.8% to $86.56 after boosting its dividend by 10.6%.

  Restoration Hardware (RH) dropped 12% to $68.04 despite what many considered to be a solid earnings�report. Not Barron’s.

Top 10 Blue Chip Stocks To Own Right Now: McDonald's Corporation(MCD)

McDonald?s Corporation, together with its subsidiaries, operates as a worldwide foodservice retailer. It franchises and operates McDonald?s restaurants that offer various food items, soft drinks, coffee, and other beverages. As of December 31, 2009, the company operated 32,478 restaurants in 117 countries, of which 26,216 were operated by franchisees; and 6,262 were operated by the company. McDonald?s Corporation was founded in 1948 and is based in Oak Brook, Illinois.

Advisors' Opinion:

• [By John Maxfield]

  In terms of individual stocks, McDonald's (NYSE: MCD  ) is one of the best-performing components on the Dow this afternoon, up by 1.4% at the time of writing after the company released same-store sales numbers for the month of May. Global comparable sales at the fast-food giant rose by 2.6% in May. Here in the U.S., the figure advanced by 2.4%. McDonald's attributed the better-than-expected results to its breakfast menu, "wide range of chicken options," and the "ongoing appeal" of its value menu.

• [By Brian Stoffel]

  By combining the food qualities from La Boulange and the drive-through in more car-centric locations, its easy to see how even McDonald's (NYSE: MCD  ) might be in for a fight with the fast-food crowd.

• [By Diane Alter]

  Dividend Stocks That Increased Payout in September

  Accenture plc (NYSE: ACN) announced a 14.8%, or $0.12 per share, increase to its semiannual dividend. The management consulting firm will now pay a semiannual dividend of $0.93. Shares yield 2.53%. Agruim Inc. (NYSE: AGU) boosted its dividend by $1.00 per share to a total dividend of $3.00 on an annualized basis. Shares of the global retailer of agricultural products now sprout a 3.54% yield. Air Industries Group Inc. (NYSE: AIRI) doubled its dividend to $0.125 per share. The maker of airplane and helicopter parts now floats a lofty yield of 6.6%. Alexandria Real Estate Equities Inc. (NYSE: ARE) upped its dividend 4.6% to $0.68 per quarter for a yield of 4.21%. Banner Corp. (Nasdaq: BANR) boosted its quarterly dividend 25% to $0.15 per share. The parent company of Banner and Islander Bank serves the Pacific Northwest region. Brady Corp. (NYSE: BRC) lifted its quarterly dividend 2.6% to $0.78 per share. It was the 28th straight dividend increase from the identification solutions company. Shares yield 2.57%. Campbell Soup Co. (NSE: CPB) raised its quarterly dividend to $0.31 per share, up from $0.29. The company last raised its dividend in November 2010. Shares yield a hearty 3.06%. CLARCOR Inc. (NYSE: CLC) raised its quarterly dividend 26% to $0.17 per share. It's the largest percentage increase from the Tennessee-based diversified marketer of mobile filtration and packaging products in the last 20 years, and it continues the company's consecutive streak of increasing dividends for the last 30 years. Franklin Resources Inc. (NYSE: BEN) boosted its quarterly dividend 2.6% to $0.10 per share. Frisch's Restaurants Inc. (NYSE: FRS) increased its quarterly dividend 12.5% to $0.18. Shares yield 3.10% The Goodyear Tire & Rubber Company (NYSE: GT), in a move that suggests good times are ahead, reinstated its dividend at $0.05 per share. Good

Top 10 Blue Chip Stocks To Own Right Now: Apple Inc.(AAPL)

Apple Inc., together with subsidiaries, designs, manufactures, and markets personal computers, mobile communication and media devices, and portable digital music players, as well as sells related software, services, peripherals, networking solutions, and third-party digital content and applications worldwide. The company sells its products worldwide through its online stores, retail stores, direct sales force, third-party wholesalers, resellers, and value-added resellers. In addition, it sells third-party Mac, iPhone, iPad, and iPod compatible products, including application software, printers, storage devices, speakers, headphones, and other accessories and peripherals through its online and retail stores; and digital content and applications through the iTunes Store. The company sells its products to consumer, small and mid-sized business, education, enterprise, government, and creative markets. As of September 25, 2010, it had 317 retail stores, including 233 stores in the United States and 84 stores internationally. The company, formerly known as Apple Computer, Inc., was founded in 1976 and is headquartered in Cupertino, California.

Advisors' Opinion:

• [By Morgan Housel]

  Overexposed
  TD AMERITRADE� (NYSE: AMTD  ) clients�had a big exposure to Apple (NASDAQ: AAPL  ) stock on margin:�

  One-third of the multi-billion dollar margin balances at TD Ameritrade are in accounts that have more than 25 percent market exposure to Apple.

• [By Justin Loiseau]

  Weighing in at 0.64 pounds, the Nexus has slightly less heft than�Apple's (NASDAQ: AAPL  ) iPad Mini, although the Mini sports a 7.9-inch HD screen. With an increasingly large battery life, the latest Nexus holds up for nine hours of video playback or 10 hours of e-reading and surfing the Web. Like other Google portable devices, the Nexus 7 runs on the company's Android system, the most widely used mobile operating system in the world. The tablet will be offered both with and without 4G LTE capability.

Top 10 Blue Chip Stocks To Own Right Now: International Business Machines Corporation(IBM)

International Business Machines Corporation (IBM) provides information technology (IT) products and services worldwide. Its Global Technology Services segment provides IT infrastructure and business process services, including strategic outsourcing, process, integrated technology, and maintenance services, as well as technology-based support services. The company?s Global Business Services segment offers consulting and systems integration, and application management services. Its Software segment offers middleware and operating systems software, such as WebSphere software to integrate and manage business processes; information management software for database and enterprise content management, information integration, data warehousing, business analytics and intelligence, performance management, and predictive analytics; Tivoli software for identity management, data security, storage management, and datacenter automation; Lotus software for collaboration, messaging, and so cial networking; rational software to support software development for IT and embedded systems; business intelligence software, which provides querying and forecasting tools; SPSS predictive analytics software to predict outcomes and act on that insight; and operating systems software. Its Systems and Technology segment provides computing and storage solutions, including servers, disk and tape storage systems and software, point-of-sale retail systems, and microelectronics. The company?s Global Financing segment provides lease and loan financing to end users and internal clients; commercial financing to dealers and remarketers of IT products; and remanufacturing and remarketing services. It serves financial services, public, industrial, distribution, communications, and general business sectors. The company was formerly known as Computing-Tabulating-Recording Co. and changed its name to International Business Machines Corporation in 1924. IBM was founded in 1910 and is based in Armonk, New York.

Advisors' Opinion:

• [By Rich Smith]

  Xerox stock is cheap
  When you stack up Xerox stock against two of its rivals in the international "business process outsourcing" industry -- Accenture (NYSE: ACN  ) and IBM (NYSE: IBM  ) -- it's clear that Xerox is one of the cheapest options out there. Its 9.7 price-to-earnings ratio falls 32% below the P/E of IBM. It sells for a whopping 45% discount to the price of a share of Accenture.

• [By Dan Dzombak]

  With IBM (NYSE: IBM  ) , the largest component of the Dow Jones Industrial Average (Index: ^DJI), having lost almost 8% of its value, the blue-chip index is down 0.12% as of 1:25 p.m. EDT. Meanwhile, the S&P 500 (SNPINDEX: ^GSPC  ) is up 0.67% to 1,552.

• [By Alex Planes]

  Thomas J. Watson, Sr. became president of the Computing-Tabulating-Recording Company on May 1, 1914 -- you know it today as International Business Machines (NYSE: IBM  ) , and it's thanks in no small part to Watson's enduring legacy that you know it at all. In 1914, the future IBM was a disjointed, sprawling enterprise that its founders were having difficulty controlling. Watson streamlined the company, giving it a focus, a motto, and a corporate identity that persists to this day.

First Take: Yellen has chance to prove her mettle

The rap against Janet Yellen during the ugly public Fed feud over who should be the next chairman of the nation's central bank was that her chief rival would make a better crisis manager during these tumultuous financial times.

True, former Clinton Treasury Secretary Larry Summers had experience managing the 1997 Asian currency crisis that threatened a global meltdown. And again as President Obama's chief economic adviser, he helped confront the economic collapse here at home.

But now that President Obama appears to have settled on Yellen, don't underestimate her ability to show the old boys' club of banking that just because she's a woman, it doesn't mean she isn't an equal as a crisis manager.

Consider that as president of the San Francisco Fed branch from 2004 to 2010, she was a leading voice in setting the central bank's policy during the 2008 financial crisis and the Great Recession it begot. Yellen was prescient in arguing in late 2007 that the financial system was headed for danger and later prodded the Fed to take extraordinary measures to bring the world economic system back from the brink of collapse.

Even as some Fed members were downplaying the crisis and worrying about inflation, Yellen made a strong case for it to continue its unprecedented stimulus programs because the economy was too weak to stand on its own. When she became vice chairman of the Fed in 2010, she worked closely with Fed Chairman Ben Bernanke to continue that policy.

Hot Insurance Companies For 2014

To date, the record shows she has been right: The economy averted a depression and is slowly gaining strength without a whiff of inflation on the horizon.

It takes temerity to stick to that course in the face of so much second-guessing about Fed moves inside and outside the central bank. Though soft-spoken in contrast to the bravado performances of Larry Summers, Yellen can be forceful in making her cas! e. Her predecessor as vice chairman, Donald Kohn, has described her as a strong economist who is meticulously prepared and expresses strong views. "She's no pushover," he has said.

How good a crisis manager might she make as Fed chairman after Bernanke steps down in January? Assuming she's confirmed by the Senate, we'll find out soon enough.

A stalemate between Republicans in Congress and the White House over raising the debt ceiling could throw the nation into a first-ever default this fall, with unforeseen consequences that could wreak havoc on the world economy.

If that isn't enough, the Fed still has to decide when to start reversing its massive stimulus program of bond-buying, a policy shift that could have far-reaching effects on interest rates and currency values across the globe. A few years later, the Fed will have to decide when the economy is finally healthy enough to raise interest rates, another move that will surely shake world markets and economies.

Those are stiff challenges for any Fed chairman to face. Yellen, as the first woman in the post, would surely face even closer scrutiny about whether she is up to the task.

Here's a short, simple answer based on her track record:

Yes.

The Main Flaw With Obamacare

Top Dividend Companies To Buy For 2014

In the tradition of sweeping federal statutes, the U.S. healthcare law passed in March, 2010, received a grandiose official name: The Patient Protection and Affordable Care Act. Known popularly as Obamacare, it may be the most misunderstood law to be enacted in recent years. Given how rocky its first few weeks of existence have been, let's assess how viable Obamacare may be in the long run, and what could replace it should it fail. In the interest of full disclosure, I am one of the 4.2 million individuals who had his insurance cancelled as a result of Obamacare, insurance I felt was perfectly acceptable. I will now have to pay more for coverage I don't want.

The Main Points
The act itself runs 389,365 words long, or 823 PDF pages, so encapsulating its salient points and thwarting any misconceptions requires a summary of a summary of a summary. Here's a short version of what the law entails:

An individual mandate to purchase health insurance - You don't have a plan via your employer? Even if you visit your physician annually as recommended, and pay out-of-pocket, that's now unacceptable. Fail to purchase health care insurance, and you'll pay a fine. An employer mandate to purchase insurance - If you have 50 full-time employees, you have to purchase insurance for them and if you work for said company, it must offer you health insurance. One way around this is to cap workers' hours under the full-time threshold of 30 a week. Uniform pricing on the part of health insurers - Are you a male triathlete who subsists on nothing but steamed broccoli and skinless chicken breasts? Or an obese, sedentary female with a fifth-of-bourbon-a-day habit? Congratulations, if you're the same age, you'll be paying similar premiums. Minimum policy standards, regardless of what fits you - If you're a celibate Buddhist monk, your plan must cover HIV screening and counseling. A woman in a healthy marriage to a respectful man? Your plan has to cover domestic violence screening, because you never know when he might turn on you. Taxpayer money for those who buy Obamacare-approved policies - If you make up to quadruple the official federal poverty level – $45,960 for a single person in the lower 48, slightly more in Alaska and Hawaii – you pay less than face value for your mandated policy. The federal government will credit you and send the rebates directly to your insurer. Insurers in the pre-Obamacare world chased profit, just as any other business would. That meant doing some actuarial work, figuring out how much it would cost to insure particular demographic groups of customers, and pricing accordingly. A diabetic is going to need insulin, and his non-diabetic neighbor with similar vital statistics won't. Such assessments account for some of the discrepancies in costs between the two policyholders' plans.

The most visible manifestation of Obamacare is the health insurance "exchanges," one for every state. They're essentially a health insurance versions of Expedia or Priceline, or they would be if they were functional enough to enroll people into plans. South Dakota's exchange is averaging 1.9 signups per day, a rate that will cover everyone in the state by the year 3233, assuming no one is born in, nor moves to, South Dakota in the next 1,220 years.

The Main Flaw
The individual mandate is the keystone of Obamacare, a metaphor that fits on multiple levels. Remove the individual mandate, and the remainder becomes structurally unsound. Why? Because of the situation that Obamacare was enacted to counter: millions of people not having health insurance. The usual estimate given is 47 million, which is often cited without asking a more fundamental question: How many of those people don't have health insurance because they'd rather spend money on something else?

To a healthy 25-year-old with decades ahead of her and relatively low premiums available for purchase, forgoing insurance means having more money to spend elsewhere: rent, gas, even shoes. This near-uniform pricing among age groups means necessarily overcharging the young and virile folk while undercharging the older and hospital-prone. As the former outnumber the latter, the former's participation is crucial to making Obamacare work.

The idea of insurance is to pool risk, but under Obamacare you can't do much to lower your health risks and also reduce your premium (other than quit smoking). Risk here is being pooled without regard for conditions or predispositions. Buy an old cabin in the middle of a National Forest, miles away from the nearest fire station, and your fire insurance premium will be greater than that for the new house with the smoke alarms and sprinkler systems that sits adjacent to a firehouse. And that's assuming you could even get insured in the first place. If fire insurance were written according to the rules of Obamacare, you wouldn't pay extra for the "pre-existing condition" of your house being constructed in a place where fires are inherently hard to extinguish.

Obamacare opponents understand both the importance and fragility of the individual mandate. Postponing it for a year or otherwise weakening it would seem fair to the tens of millions of Americans who a) never wanted insurance in the first place; b) recently had their policies cancelled or their prices increase through no fault of their own; and/or c) can't get on Healthcare.gov to buy a policy. But getting rid of the individual mandate would make it impossible to sustain the subsidized policies being sold to those with pre-existing conditions (and cited as a positive aspect of the legislation.)

Political Opposition
Political pressure to weaken the mandate is growing, as even some of Obamacare's most ardent supporters are looking for ways to modify the law. Senators Mary Landrieu of Louisiana and Dianne Feinstein of California co-sponsored the "Keep Your Health Plan" bill. The bill, which was passed on Sept. 14, allows health insurers to sell individual coverage throughout 2014, even if it doesn't meet the Obamacare standards. Had the mandate been deferred, the inevitable reduction in insurance company receipts would likely spell the collapse of the whole system.

There's also the slim possibility that the federal government could completely disengage itself from the private health insurance market, allowing Anthem Blue Cross/Blue Shield, Wellpoint and their competitors to provide salable policies that people want to buy. The new Obamacare-compatible plans must cover conditions that buyers don't necessarily want/need to be covered for. By including that extraneous coverage, the policies often become too expensive to buy, and thus impossible for insurers to profit on.

One thing's certain, however: the current trajectory of federally mandated health insurance is unsustainable for much longer. Even if the websites were working perfectly, there's still the matter of millions of people having already lost their coverage via cancellation notices, which were sent out as a direct result of health insurance now being federally mandated.

So what practical alternatives remain? Repeal of Obamacare requires a veto-proof majority in both houses of Congress, unlikely given that the Senate is controlled by Democrats. Besides, there remains the problem of asymmetric risk. Obamacare sells artificially expensive policies to low-risk insureds while selling artificially cheap policies to high-risk insureds, which can work in the short term. But allowing the former to opt out would make a new system inevitable, given that there'd be insufficient money coming in to cover those difficult to insure. T! he healthy and resilient by definition outnumber the sick, i.e. those who consume the most health-care resources per capita. Selling high-risk policies at below market price requires subsidization of some sort. If not from the low-risk insureds, then possibly from taxpayers at large.

The Bottom Line
Despite noble goals and intentions, healthcare reform is now poised to get worse before it gets better. Insurers continue to send out cancellation notices several dozen times faster than people are signing up for Obamacare-compliant policies. Given that federal law by definition affects all citizens, the only course of action for someone looking to save on healthcare expenses in the limbo of Obamacare's aftermath is to shop around or, failing that, pay the fine for non-coverage. Oh, and don't smoke: tobacco users are the only remaining group whom it's still legal for insurers to punish with discriminatory pricing.

Wholesale prices dip for 2nd month on cheaper gas

Cheap gas is keeping inflation in check.

The Labor Department reported Thursday that lower gas prices helped push down the U.S. producer price index in October, marking the second straight month of decline. The index, which reflects the wholesale price of good before they reach consumers, fell 0.2% in October, following a 0.1% dip in September.

Gas plunged 3.8% in October helping fuel an overall 1.5% decline in "finished energy goods," the first such drop since a 2.5% fall in April. Prices for diesel fuel and residential natural gas also contributed to the October decline.

CONSUMER PRICES: Inflation falls as gas prices plummet

Over the past 12 months, energy costs have helped tame inflation. Prices have increased just 0.3% in that stretch.

Excluding volatile energy and food prices, wholesale costs increased 0.2% in October and 1.4% in the past 12 months. The continued low level of inflation enables the Federal Reserve to maintain its unique stimulus measures.

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High unemployment and weak wage increases have made it difficult for businesses to raise prices, both at the wholesale and consumer levels.

Core wholesale prices were elevated in part last month by a 1.7% increase in the cost of new cars. Automakers introduced their 2014 models in October, which affects prices each year. That suggests inflation was even lower.

Wholesale food prices also increased last month, primarily because of higher beef and veal costs. Wholesale prices for bread rolls, muffins, bagels and croissants rose 4 percent, the biggest month-over-month increase on records dating back to 1980.

But the steady decline in energy prices has reduced costs across much of the economy. Gas prices are tumbling because of increased domestic production, greater political stability in the Middle East, and less demand from drivers.

U.S. gas prices began falling in the spring and! reached two-year lows earlier this month. The average price of a gallon of gas was $3.21 on Wednesday, according to AAA's Daily Fuel Gauge Report.

The Fed has said it will keep the short-term interest rate it controls at nearly zero at least until the unemployment rate falls below 6.5 percent, as long as the outlook for inflation stays low.

By keeping the lid on inflation, the Fed can continue to buy bonds to try and lower long-term interest rates.

Contributing: USA TODAY's Ed Baig, Associated Press

10 Retailers With Incredibly Flexible Return Policies

By Katherine Muniz

As consumers, we all hate that feeling when we lose a receipt or clip a tag off prematurely on a product it turns out we only semi-like. It's that moment when we give in to defeat when we wish there was a way to get our money back. But, it turns out that we might be able to do all our shopping at a few stores that have the best consumer-friendly, incredibly flexible return policies ever.

Zappos Zappos boasts free shipping and free return shipping on all domestic orders. Customers have 365 days to return their order to the Zappos warehouse for a full refund. The products have to be unworn, in the state the customer received them, and in the original packaging.

Customers go through an easy self-service return process to print a free turn label out via their account. Customers who purchase an order on Feb. 29 of a Leap Year get until Feb. 29 the following Leap Year to return their order, which is a whopping four years!

Nordstrom According to a Nordstrom spokesman, Colin Johnson, "The return policy is that there is no return policy. You won't find one posted at the cash register on your receipt. The bottom line is that we work with our customer." In short, there is no time limit or receipt needed to make a return.

For those who order online, they can return in-store or get free return shipping provided by the company. When we reached out for contact, a customer service rep told us, "Returns are always up to the discretion of the returns process or the store but generally if the item doesn't meet your expectations you are always welcome to exercise your option to return or exchange the item."

Anthropologie Anthropologie, a store owned by Urban Outfitters, offers a "curated mix of clothing, accessories, gifts and home decor." On their site, it says, "All Anthropologie merchandise in unconditionally guaranteed. If you are not satisfied with your purchase for any reason, please let us known so we can take care of you."

Upon calling the Anthropologie store in Soho, a sales associate said that the only things needed to complete a return are the receipt and the credit card used to make an order (if one was used) and identification. No tags need to be on the clothing, and the store offers complimentary return pick-ups provided by USPS, who will come to your house and pick up the packaged item (with the free return label provided) right from your door.

Atheleta Athleta, a retailer for women's performance apparel, has a superior returns policy that beats its competitor, Lululemon.

At Athleta there are no limitations on returning specific merchandise, merchandise can be returned at any time, returns are free, and exchanges are free.

Costco Costco's return policy is generous, offering their customers a refunded membership fee at any time if dissatisfied, as well as a satisfaction guarantee on every product sold with a full refund.

Certain electronic products must be returned within 90 days of purchase for a refund. See their full policy here.

Kohl's Kohl's offers hassle-free returns, in which customers can return an item for a full refund or even exchange with receipt, or without a receipt, can make an even exchange by getting a Merchandise Credit or get a corporate refund.

For Kohl's Charge purchases, returns can be made for up to 12 months after the purchase date. Non-Kohl's Charge purchases or those made outside the 12 month timeframe can receive a Kohl's Merchandise Credit or a corporate-issued refund check.

Eddie Bauer Customers can rest assured with Eddie Bauer's guarantee that "Every item we sell will give you complete satisfaction or you may return it for a full refund." Customers can make returns with the receipt for a full refund in the original payment method (though this doesn't include shipping charges) and without the receipt for an exchange or merchandise credit.

According to a customer service representative, there is no time limit for returns, and original tags do not need to be attached to the products. However, return shipping is not free, with a charge of $6.00 deducted from your merchandise credit or refund for returns weighing 5 pounds or less, and $8.50 for all other packages.

Target Target really goes all out to ensure easy returns for their customers, by offering a few ways to check your purchase: by scanning receipts or packing slips, offering receipt look-up, and offering a non-receipted return or exchange with a valid form of identification. Most unopened items in new condition can be returned within 90 days, and those that don't will have a return by or within day range on the receipt or packing slip.

Bundled items must be returned with all components for a full refund. For online purchases that are not allowed to be returned to local stores, shipping costs are deducted from the refund. Consumer electronics have a 30-day return window, and for the holidays, anything bought in November doesn't have the 30-day clock start until Dec. 26.

Land's End "If you're not satisfied with any item, simply return it to us at any time for an exchange or refund of its purchase price." Customers who no longer have their packing slip and/or receipt can obtain their online order history through their personal shopping account, or can contact customer service. Customers can return catalog and internet orders to any Sears store. Returning items for exchanges will be paid for by the company, however returned items are charged a flat fee of $6.95 to the customer.

For customers getting refunds for returns, if the original form of payment is no longer valid, or was given as a gift or made from points or vouchers from the rewards program, a gift card will be give as a refund. For customers returning an item where the record of purchases dates back to 9 months or greater, the refund will be made in the form of a refund check. An item for which there is no record of purchase will get a refund for the item's lowest sales price in the form of a Lands' End Gift Card.

Bloomingdale's While there is no time limit on Bloomingdale's returns, the store does have exceptions on specific items, of which you can see in detail by going to the Bloomingdale's return policy page. All merchandise returned needs to be new and unused, with Bloomingdale's "b-tags" and designer garment tags still attached, as well as other accompanying materials that came in the original package.

However, Bloomingdale's also works to assist their customers in locating returned items, so if a customer shows up without a receipt, they can locate the item by scanning the white proof-of-purchase sticker located on the price tag.

So, our final verdict is that Land's End offers the most assistance in helping their customers make returns. Do you agree?

Honoring the firms with the best practices

InvestmentNews today announced the winners of the first annual Best Practices awards, acknowledging 24 advisory firms in two categories, human capital management and technology.

Award winners were honored at a best practices workshop in Chicago.

The awards were given based on results from the InvestmentNews Compensation and Staffing Study, as well as personal interviews.

The winners are as follows:

Human Capital Management, Industry Innovators:

Balasa Dinverno Foltz LLC, Itasca, Ill., bdfllc.com

Briaud Financial Advisors, College Station, Texas, briaud.com

Fish & Associates, Memphis, Tenn., fishandassociates.com

JMG Financial Group Ltd., Oak Brook, Ill., jmgfinancial.com

JVL Associates LLC, Wyoming, Mich., jvlassociates.com

Singer Xenos Wealth Management, Coral Gables, Fla., singerxenos.com

Human Capital Management, Top-Performing firms:

Johnson Carriar Kruchten Anderson & Associates, Saint Cloud, Minn., ameripriseadvisors.com

Pinnacle Advisory Group Inc., Columbia, Md., pinnacleadvisory.com

Rinvelt & David LLC, Grand Rapids, Mich., rinveltdavid.com

Roof Advisory Group Inc., Harrisburg, Pa., roofadvisory.com

Vintage Financial Services LLC, Ann Arbor, Mich., vintagefs.com

Willow Street Advisors LLC, Naples, Fla., willowstreetadvisors.com

Overall Use of Technology, Industry Innovators:

Empirical Wealth Management, Seattle, empirical.net

Financial Plan Inc., Bellingham, Wash., financialplaninc.com

Joseph Barry Co. LLC, New Bedford, Mass., josephbarry.com

Searcy Financial Services Inc., Overland Park, Kan., searcyfinancial.com

Strategic Capital Allocation Group LLC, Boston, scagrp.com

The Arkansas Financial Group Inc., Little Rock, Ark., arfinancial.com

Overall Use of Technology, Top-Performing Firms:

Bedrock Capital Management Inc., Los Altos, Calif., bedrockcapital.com

Budros Ruhlin & Roe Inc., Columbus, Ohio, b-r-r.com

Evensky & Katz LLC, Coral Gables, Fla., evensky.com

Roof Advisory Group Inc., Harrisburg, Pa., roofadvisory.com

Shelton Financial Group Inc., Fort Wayne, Ind., sheltonfinancial.com

Yellow Brick Road Financial Advisors LLC, San Francisco, ybrfinancialadvisors.com

Is Sotheby's Worth Bidding On? Citigroup Says So

While Fools should generally take the opinion of Wall Street with a grain of salt, it's not a bad idea to take a closer look at particularly stock-shaking upgrades and downgrades -- just in case their reasoning behind the call makes sense.

What: Shares of Sotheby's (NYSE: BID  ) climbed 2% in early trading after Citigroup upgraded the auction house to "buy" from "neutral."

So what: Along with the upgrade, analyst Oliver Chen boosted his price target on the stock to $55 per share (from $45), representing about 16% worth of upside to yesterday's close. Chen cited several potential catalysts for the call, including the potential sale of its headquarters, a return of capital to shareholders, and even a possible leveraged buyout.

Now what: At the very minimum, I expect management to make some strategic tweaks and start focusing on less expensive goods. "Sotheby's current focus on high-end property may leave the company vulnerable to competition on commission margins and sellers of high-end property could be more likely to leave the market during pullbacks which exposes Sotheby's to greater volatility," Chen said. So while the stock is hitting a new 52-week high today, Citigroup's price target doesn't seem all that unreasonable given the many number of potential catalysts working in Sotheby's favor. 

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Top 5 Cheap Stocks To Watch For 2014

 You can make a fortune in commodities buying when an asset has been "blown out" and left for dead.   That "contrarian" take allows you to buy cheap, safe assets.   Looking around these days, you might think coal producers qualify as a contrarian's commodity. For two years, the sector has been beaten bloody. Major coal producers are approaching their "end of the world" 2009 lows. How much worse can it get?   A lot worse. Now is not the time to buy. Let me explain...    When you're talking about coal consumption here in the U.S., you're talking about electricity. In the early 2000s, the power sector used more than 90% of the coal produced in the country.

Top 5 Cheap Stocks To Watch For 2014: SMTC Corporation(SMTX)

SMTC Corporation provides advanced electronics manufacturing services to original equipment manufacturers (OEMs) worldwide. The company?s services include product design and engineering services, printed circuit board assembly production, enclosure fabrication, systems integration, testing, and configuration services. It also provides enclosure and precision metal fabrication, cable assembly, interconnect, and engineering design services. The company offers its integrated contract manufacturing services to OEMs and technology companies primarily in the industrial, computing and networking, communications, consumer, and medical market segments. SMTC Corporation was founded in 1985 and is based in Markham, Canada.

Top 5 Cheap Stocks To Watch For 2014: Cowen Group Inc.(COWN)

Cowen Group, Inc. is a publicly owned asset management holding company. Through its subsidiaries, the firm provides alternative investment management, investment banking, research, and sales and trading services for its clients. It manages separate client focused portfolio through its subsidiaries. Through its subsidiaries, the firm invests in equity and fixed income markets. It also invests in alternative investments markets through its subsidiaries. Cowen Group, Inc. was founded in 1994 and is based in New York, New York with additional offices in Boston, Massachusetts, Chicago, Illinois, Cleveland, Ohio, Dallas, Texas, and San Francisco, California.

Best High Tech Stocks To Watch For 2014: WebMediaBrands Inc(WEBM)

WebMediaBrands Inc., an Internet media company, provides content, education, and career services to media and creative professionals through a portfolio of vertical online properties, communities, and trade shows. The company operates mediabistro.com, a blog network that provides content, education, community, and career resources about media industry verticals, including new media, social media, Facebook, TV news, sports news, advertising, public relations, publishing, design, mobile, and the semantic Web. Its mediabistro.com also includes a job board for media and business professionals focusing on various job categories, such as social media, online/new media, publishing, public relations/marketing, advertising, sales, design, and television. The company also operates a network of online properties, including AdsoftheWorld, DynamicGraphics, LiquidTreat, BrandsoftheWorld, Graphics.com, StepInsideDesign, Creativebits, and GraphicsDesignForum that provide content, educatio n, community, career, and other resources for creative and design professionals. In addition, it offers community, membership, and e-commerce offerings comprising a freelance listing service, a marketplace for designing and purchasing logos, and premium membership services. Further, the company provides online and in-person courses, panels, certificate programs, and video subscription libraries for media and creative professionals. Additionally, it organizes various trade shows that include Semantic Technology Conference, Monetizing Social Media, Social Media Optimization Conference, Social Gaming Summit, and Virtual Goods Summit. The company was formerly known as Jupitermedia Corporation and changed its name to WebMediaBrands Inc. in February 2009. WebMediaBrands Inc. was founded in 1999 and is based in New York, New York.

Top 5 Cheap Stocks To Watch For 2014: MEDIWARE Information Systems Inc.(MEDW)

Mediware Information Systems, Inc., together with its subsidiaries, engages in the design, development, and marketing of software solutions targeting specific processes within healthcare institutions. The company offers software systems consisting of company's proprietary application software, and third-party licensed software and hardware. It licenses, implements, and supports clinical and performance management, blood donor, and blood and biologic management products in the United States; and medication management solutions in the United States, the United Kingdom, Ireland, and South Africa. The company?s blood and biologics management solutions include HCLL Transfusion and HCLL Donor, which address blood donor recruitment, blood processing, and transfusion activities for hospitals and medical centers; BloodSafe suite of hardware and software that enable healthcare facilities to store, monitor, distribute, and track blood products; LifeTrak software for blood centers; a nd BiologiCare, a bone, tissue, and cellular product tracking software. Its medication management products comprise WORx, a pharmacy information system to manage inpatient and outpatient pharmacy operations; MediCOE, a physician order entry module; MediMAR, a nurse point-of-care administration and bedside documentation module; MediREC, which assists in achieving compliance with a Joint Commission mandate; and pharmacy management and electronic prescribing systems. The company?s performance management products include InSight software that tracks performance metrics to assist healthcare managers to manage performance. It also provides software installation and maintenance services, as well as billing and collection services to home infusion and home/durable medical equipment markets. The company markets its products primarily through its direct sales force. Mediware Information Systems, Inc. was founded in 1970 and is headquartered in Lenexa, Kansas.

Advisors' Opinion:

• [By CRWE]

  Mediware Information Systems, Inc. (Nasdaq:MEDW) plans to acquire the assets of Indianapolis-based Strategic Healthcare Group LLC (SHG), a leading provider of blood management consulting, education and informatics solutions.

Top 5 Cheap Stocks To Watch For 2014: International Business Machines Corporation(IBM)

International Business Machines Corporation (IBM) provides information technology (IT) products and services worldwide. Its Global Technology Services segment provides IT infrastructure and business process services, including strategic outsourcing, process, integrated technology, and maintenance services, as well as technology-based support services. The company?s Global Business Services segment offers consulting and systems integration, and application management services. Its Software segment offers middleware and operating systems software, such as WebSphere software to integrate and manage business processes; information management software for database and enterprise content management, information integration, data warehousing, business analytics and intelligence, performance management, and predictive analytics; Tivoli software for identity management, data security, storage management, and datacenter automation; Lotus software for collaboration, messaging, and so cial networking; rational software to support software development for IT and embedded systems; business intelligence software, which provides querying and forecasting tools; SPSS predictive analytics software to predict outcomes and act on that insight; and operating systems software. Its Systems and Technology segment provides computing and storage solutions, including servers, disk and tape storage systems and software, point-of-sale retail systems, and microelectronics. The company?s Global Financing segment provides lease and loan financing to end users and internal clients; commercial financing to dealers and remarketers of IT products; and remanufacturing and remarketing services. It serves financial services, public, industrial, distribution, communications, and general business sectors. The company was formerly known as Computing-Tabulating-Recording Co. and changed its name to International Business Machines Corporation in 1924. IBM was founded in 1910 and is based in Armonk, New York.

Advisors' Opinion:

• [By Tim Brugger]

  For the last year, through the first calendar quarter of 2013, Microsoft (NASDAQ: MSFT  ) has generated about $76 billion in revenues, so why would a mere $1.19 billion in sales in what is now a relatively minor $13.1 billion market, according to recent data from Gartner, warrant investor discussion? Or take the case of IBM (NYSE: IBM  ) and its $104.5 billion in annual revenues in 2012. Its paltry $1.63 billion piece of this particular pie hardly makes a dent, so what's the big deal?

• [By DailyFinance Staff]

  There's a new king in a closely watched brand marketing survey, and the Gulf oil spill is back in the spotlight. These stories and more are in Monday's Market Minute. The Dow Industrials (^DJI) and the S&P 500 (^GPSC) both fell by more than one percent last week, but the Nasdaq (^IXIC) edged slightly higher. The major averages are set to sell-off this morning as the market braces for a government shutdown. AP Photo/Kin Cheung Apple (AAPL) has toppled Coca-Cola (KO) as the world's most valuable brand. This is the first time in the Interbrand survey's 13-year history that Coke has not been number one. It fell to third, with Google (GOOG) sliding into the second spot. BP is back in court today for the start of the second phase of a three-part trial to determine responsibility for the gigantic Gulf of Mexico oil spill three years ago. The company is trying to limit the amount of damages it might have to pay. Fines could total as much as 18-billion dollars. BP has already paid out more than 42-billion in clean-up, compensation and fines. Meanwhile, Royal Dutch Shell plans to sell its stake in a major oil project in Texas. It says the Texas project has not live up to expectations. IBM (IBM) agreed late Friday to settle federal charges that it discriminated against Americans in some of its hiring practices. The company's online job listings expressed a preference for software developers who had student visas or H-1B visas. IBM will pay a small fine and revise its hiring process. We continue to watch shares of J.C. Penney (JCP), which plunged 30 percent last week. The retailer issued 84-million shares, diluting the value of its current stock, and analysts warned that sales growth remains sluggish. And King.com, the online entertainment company best known for its Candy Crush game, has filed to go public in the U.S. The British company says it has 30-billion games played globally each month. The filing reportedly values King at about 5-billion dollars.

• [By Selena Maranjian]

  Alamy April is Financial Literacy Month, and our goal is to help you raise your money IQ. In this series, we'll tackle key economic concepts -- ones that affect your everyday finances and investments -- to help you make smarter choices with every dollar decision you face. Today's term: net worth. In a nutshell, net worth is what you get when you subtract liabilities from assets -- what you owe from what you own. Like many economic and financial terms, net worth can apply in a variety of situations. If you're evaluating a company for your portfolio,you might glance at its balance sheet to get a handle on its net worth. Balance sheets break out assets (such as cash, inventory, and receivables) and liabilities (such as debt and accounts payable). Subtracting the latter from the former gives you net worth, which is also referred to in this context as shareholders' equity or book value. Here's an example: As of the end of 2012, IBM's (IBM) assets totaled $119 billion, and its liabilities totaled $100 billion. Thus, its net worth, or shareholders' equity, was $19 billion. Net Worth in Our Lives Each of us has an individual net worth, too, and it's arrived at in similar fashion. First, grab a sheet of paper and list all your assets. These would include the contents of your bank accounts, your investments, the equity you have in your home, your retirement accounts, the current value of your car(s), the value of your jewelry, the contents of your wallet or purse, and so on. Be thorough -- your sizable board game collection might be worth several thousand dollars, for example. Next, list all your liabilities, or debts. These would include what you owe on your mortgage or car loan, your credit card debt, any school loans outstanding, and any other debt, such as a home equity loan. Finally, subtract the liabilities from the assets. What's left is your net worth. Ideally, your net worth is positive and will grow over time. If your net worth is in negative territory,

KeyBanc Upgrades The Wendy’s Co. to “Hold” (WEN)

KeyBanc analysts upgraded fast food restaurant operator The Wendy’s Co (WEN) on Friday, noting that the company has a number of positive developments that could provide a floor for the stock.

The analysts upgraded WEN from “Underweight” to “Hold.”

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KeyBanc analyst Christopher O’Cull said, “We are raising our rating for The Wendy’s Company to HOLD as we believe: 1) Wendy’s SRS performance will diverge from the industry for the foreseeable future as new products are supported by more effective use of marketing dollars; 2) better menu and promotional management will lead to improved franchisee profitability (a focus of the new CFO Todd Penegor); and 3) the opportunity to extend the re-franchising program will provide a floor on the stock.”

Wendy’s shares were up 7 cents, or 0.81%, during pre-market trading on Friday. The stock is up 57.01% year-to-date.

Challenging Tesla: The Last Non-Electric Rolls-Royce

NEW YORK (TheStreet) --I recently drove the Rolls-Royce Wraith, which is the BMW-owned luxury brand's all-new coupe, with a base price of $285,000. I believe this to be Rolls-Royce's last non-electric car, marking the end of a century-old era of making gasoline-only cars.

Rolls-Royce was purchased by BMW in 1999 and delivered its all-new car, the Phantom four-door sedan, in January 2003. Since then, it has added a variety of new models as well as updated the Phantom a year ago.

Rolls-Royce is approaching 4,000 cars per year, with prices starting under $300,000 but typically approaching $500,000. A large percentage of the cars are "bespoke" -- or customized, with all sorts of leather, paint and other special one-off jobs. These are high-margin options.

You see, once you go much above $100,000 for a car, such things as the basic body, engine and so forth, doesn't get much better. There are diminishing returns. So how do you justify prices in the $300,000-to-$500,000 range? Rolls-Royce has figured out that it's exclusivity and individuality that can sustain such high prices. Ultra-luxury buyers are eccentric and strong-willed. They are willing to pay a premium for very precise details. They basically want to design their own car. Rolls-Royce gives them that option, and every Rolls is hand-built. So what about this all-new coupe, the Wraith? It just entered production in September, and it marks a new styling for Rolls-Royce. The back of the car looks like a hatchback. The doors are giant suicide-doors ("coach doors") and they close with a button by the A-pillar if you can't reach the handle. Getting into the rear seat is almost as hard as in any coupe, but once you get in there, you actually have good room for two large adults. I'm 6 feet tall and I fit just fine when I got into the rear seat. Unlike so many other cars these days, there is sufficient headroom. Foot and knee room is also slightly more than adequate. The armrests on both sides are outstanding, because they sit high, so as to actually provide support. In this coupe, you actually enjoy riding in the back seat. Take note, Cadillac!

The interior showcases two pieces speaking to the sheer luxury of a Rolls-Royce: 1. The doors contain the biggest single piece of wood in any car. The grain is tilted 55 degrees forward to match ... something. It's an amazing piece of woodwork. 2. The ceiling in my test car had the optional "sky" headliner. It's a leather roof, but with 1,340 (yes, that's not a typo) small fiber-optic edges providing light, representing the stars. Basically, you're looking at a fake sky. This can also be customized to match the stars the way they looked on any given day in history. All of this is hand-made, with each fiber-optic light angled just the right way.

So how does it drive?

The engine is a 6.6 liter V12 with twin turbos, yielding 624 horses and almost as much torque. Obviously, the power here is fantastic as far as an internal combustion engine is concerned.

However, once you have driven an electric car, any regular gasoline car will feel like an ancient tractor in comparison. I just can't get over the fact that even a basic $35,000 Chevrolet Volt -- let alone a Tesla Model S -- easily beats the Rolls-Royce in the smoothness department. When you floor the accelerator in the Rolls, you wait almost a second, then the engine roars and the transmission downshifts. This is just so inferior to an electric car, which has no delay and a perfectly linear and silent acceleration after that. The infotainment and related gadgetry is a mixed bag. The Wraith has the best heads-up display I have seen, but then it's mostly downhill from there. The menu system for picking audio sources and related functionality is as big of a mess as in any Mercedes, BMW, Ford (F), etc. One really wonders who comes up with this stuff. Coming from a Tesla Model S, it's clear that Tesla (TSLA) is 30 years ahead of the industry in terms of in-car infotainment. Whether Rolls-Royce or Mercedes, these people had better wake up and shape up quickly, because they are so far behind.

For my test drive, the on-board navigation had been pre-programmed with a 70-mile route. In short, the navigation didn't work. It sent me into some random neighborhoods near Phoenix, which is not what was intended. I pulled out my $399 Android smartphone and solved the problem instantly with Google (GOOG) Maps. So much for embedded automotive technology. I would hate to see a billionaire lost in a seedy neighborhood -- sort of a like a modern-day version of the opening scene in "Pretty Woman."

Now to my bottom-line realization as I drove around in this newest and extremely beautiful -- inside and out -- Rolls-Royce coupe: This must be the last non-electric Rolls-Royce.

Clearly a Tesla Model S -- or a Cadillac ELR or a Chevrolet Volt -- are very different cars than a Rolls-Royce. Realistically, very few people cross-shop. But some do, to some extent. A person who buys a Rolls-Royce at least considers a Tesla, for example. People are curious about new experiences.

A Tesla or Cadillac ELR is obviously no match for the Rolls-Royce in terms of leather, wood and overall exclusivity -- 4,000 cars a year, broken down into several body styles. That said, the sheer driving experience of a gasoline car, like the Wraith, doesn't match a Tesla, Volt or ELR. It's not as silent, smooth or responsive. You just can't beat an electric motor, no matter a 624 horsepower 6.6 liter V12. BMW owns Rolls-Royce and it knows this. For this reason, I'm betting that this is the last non-electric Rolls-Royce. So what kind of electric car will Rolls-Royce build in the future? Will it be a pure electric, or something of a hybrid? My money is on the first plug-in Rolls-Royce being a hybrid, of which there are different architectural kinds. BMW i3 and BMW i8 are two such variants. Electric motors also would make 4-wheel drive a natural for Rolls-Royce. In an electric 4x4, there's no need for a transmission tunnel, important for rear seat room and comfort.

I think we can expect to see Rolls-Royce make its future models with two large electric motors -- one front and one rear. Then add a gasoline engine to provide for backup generator power. This would likely be 3.0 liter V6, or basically the BMW i8 multiplied by two.

The battery would likely be at least 16 kWh, and the range would be at least 30 miles, possibly as much as 50 miles. Then the generator would kick in. Basically, an architecture somewhat similar to a Chevrolet Volt (Cadillac ELR) but with 4-wheel drive and with most drivetrain components sized up by two times or more.

Keep in mind that BMW, which owns Rolls-Royce, hired the key program manager from General Motors (GM), who was in charge of developing the Chevrolet Volt 2007-2010. His name is Frank Weber and he has been working for BMW and Rolls-Royce since April 2011. I expect to see a plug-in electric Rolls-Royce by 2018 that reflects this Chevrolet Volt heritage. The BMW i3 has already entered production, and the BMW i8 enters production no later than June 2014.

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Longer term, I anticipate an all-electric Rolls-Royce. It would need to beat Tesla by offering a range of at least 300 miles, preferably 400 miles. Most likely, within the next five years, probably in 2018, Rolls-Royce would therefore offer two basic drivetrains for its future cars in several different body styles: One 4x4 hybrid plug-in as I described above, and one pure electric 4x4. At the time of publication, the author was long F and GOOG. Rolls-Royce provided airfare and lunch in addition to the car and a full tank of gasoline to enable TheStreet.com to give you this first-drive report.