Jimmy Kimmel: 'I Punk'd Nine Million Of You' (And Other Quotes Of The Week)

Kimmel's Internet hoax this week was pretty aptly summarized by The Washington Post:

ABC publicity shot from "Jimmy Kimmel Live"

The YouTube clip that went viral last week of the 'Worst Twerk Fail EVER' (featuring a girl catching on fire during a twerk session gone wrong) was actually an elaborate hoax set up by Kimmel, he confirmed on his show Monday. 'To the conspiracy theorists on the Internet who thought the video was fake, you were right,' Kimmel announced proudly of the video, which attracted more than 9 million views in six days. 'It was fake, we made it up.'

But we think Atlantic Wire really nailed it in the conclusion of its reporting:

While Kimmel treats his twerking prank with lighthearted amusement, the way he pulled the prank was also a clinical study in what goes viral. It's also a revealing look at how news sausage is made — and not a very flattering look, at that. Remember, we live in a society that cares far more about twerking than it does about Syria. Nobody said this was a feel-good story.

The "big numbers" put up by Kimmel and crew were just the tip of the iceberg in a week full of some memorable numbers. So we are going to have a bit of a special edition for this week's post, strictly looking at some of the more interesting "numbers of the week."

Let's start with a quick look at the market's weekly performance, where the S&P ended on Wednesday its "rather rare seven-day winning streak…up 7 days in a row is nothing to ignore." (Schaeffer's Research). And although eight days straight was not in the cards, Friday's positive action propelled the Dow to its best week since January and the second best of the year. For the week, the Dow powered higher by +3.0%, the S&P gained +2.0%, and the Nasdaq, somewhat held back by Apple, was up +1.7%.

So, what were those "numbers" of interest this week?

–The Dow's performance was helped in no small part by the additions of Goldman Sachs (GS), Nike (NKE) and Visa (V) to the index, and the dropping of Alcoa (AA), Hewlett Packard (HPQ) and Bank of America (BAC). (Forbes). Motley Fool pointed out, however, that "it looks like the Dow might be doing some performance-chasing of its own…Nike (+42.6%) and Visa (+41.9%) have both more than tripled the Dow's gains (+13.1%) over the past year, while Goldman Sachs (+37.1%) comes in with a near-triple of its own."

–"This week's $49 billion, eight-tranche (debt) offering from Verizon Communications (VZ)…like Apple's offering earlier this year, broke records for investment-grade issuers."  –Forbes

–"Princeton University took sole possession of No. 1 among the U.S. News National Universities, breaking a tie with Harvard University."  –U.S. News and World Report, out with its annual rankings and speaking of the category of schools "that emphasize research and offer bachelor's, master's and Ph.D. programs." They added, "Williams College tightened its grip on the top spot among National Liberal Arts Colleges."

–"2 Million Bikers' Rally Converges on Washington DC for 9/11 Parade."  –Newsmax, while reporting that estimates had the actual number closer to 880,000, in an event organized to "protest a Muslim march provocatively timed for the 12th anniversary of 9/11." Other reports had the bikers' numbers far less, but still an impressive display to "commemorate 9/11 victims and military veterans." (Photos at Time Newsfeed).

–"According to estimates from Lipper, the SPDR Gold Trust, a physical gold commodity fund and the world's largest gold-backed fund, saw $1.9 billion of net outflows in July and August – almost 5 percent of current assets."  –Reuters, but also noting some pickup in investors' interest in the "top 10 gold and precious metals equity funds over the same two-month period, with $275 million of net inflows." (GLD had a particularly rough week, off -9.5%). Zero Hedge was out with a gold "rumor" Friday saying, "Financial circles in Hong Kong are buzzing today on the new Goldman Sachs projection that gold may drop below $1,000 an ounce."

–"A Wall Street Journal survey of 47 economists found that two out of three think the Fed will begin tapering after Wednesday's policy powwow."  --Barron's on Saturday, also noting that the consensus now looks to be for some form of what many are calling "tapering light." They cite estimates of a tapering start in the area of $10-15 billion per month, which others note is far less than the numbers first "feared" based on the Fed comments in June.

CNBC interviewed Goldman Sachs' chief economist Jan Hatzius after the jobs report Friday a week ago:

At the upcoming Federal Reserve meeting, Hatzius said that his expectation is that the central bank will begin a program of tapering its asset purchases, but 'they will lean pretty hard on making it a dovish taper.' He said the number could be '$20 billion or a little less' but said the dovish lean could include a reinforcement of forward guidance, a lowering of the unemployment threshold or introducing additional conditions that need to be met before hiking rates.

Newer reports this week now say Goldman has shaved its estimate to be closer to $10 billion in tapering, if the announcement comes at this week's meeting, which they do expect. (WSJ)

–"Carl Icahn is looking at about a $70 million profit on his six-month investment in Dell Inc."  –Wall Street Journal, as Dell finally sewed up its deal to be taken private. They added, "Icahn views his profits as a 'consolation' prize in his broader fight in the deal."  Forbes quoted founder Michael Dell after the announcement this week:

This is a great outcome for our customers and our company. In taking Dell private we plan to go back to our roots, focusing on the entrepreneurial spirit that made Dell one of the fastest growing and most successful companies in history.

–"(Cost) estimates have ranged from 'tens of millions' to 'billions' should President Barack Obama take military action against Bashar Assad's regime."  –NBC News, in a story from the prior week, which lost quite a bit of steam with President Obama's Tuesday night speech to the American public, closed door meetings with Congressional leaders, and the very public grandstanding by Russian President Vladimir Putin.  Putin's op-ed in the New York Times was the political topic of the week, engendering unprintable Twitter comments and where he said, in part:

The potential strike by the United States against Syria, despite strong opposition from many countries and major political and religious leaders, including the pope, will result in more innocent victims and escalation, potentially spreading the conflict far beyond Syria's borders. A strike would increase violence and unleash a new wave of terrorism…From the outset, Russia has advocated peaceful dialogue…It is alarming that military intervention in internal conflicts in foreign countries has become commonplace for the United States.

–"Turns Out 'c' In Apple's iPhone 5c Doesn't Stand For Cheaper"  –Forbes, reflecting on the general disappointment from Apple's big launch event this week, where expectations for pricing were not met, especially for the lower-priced product, "because the plastic-encased iPhone 5c, without a wireless subsidy, sells for $550,  $250 more than some analysts we're betting." However, at least in the U.S. market, the 5c will "be priced it at $99 for an entry-level model with a two-year wireless service contract." AAPL finished the week off -6.7% at $464.90.

–"Lehman Cost: $18 Trillion+"  –NY Post in Sunday's lead business story, noting the Fifth Anniversary of Lehman's collapse and the "$10 Billion lost for every day since the financial crisis officially began on September 15, 2008." The article makes many points, but none more telling than asking where all that money has gone or put to what use:

Most working Americans know that almost nothing of the borrowed trillions has ended up in their pockets. Median household income has remained flat since 2008, and the unemployment rate is more than a full percentage point above where it was on that Lehman Monday, while the US workforce has shrunk dramatically…In retrospect, the bright-eyed money men from Wall Street and Washington who met at the NY Fed that Lehman weekend must concur that it would have cost a lot less than $18 trillion to have come up with a way to keep Lehman afloat.

And to add another ironic but sad twist, except for those who somehow managed to keep their jobs, their 401(k)'s, their other savings and their home intact, CNBC this week noted in something of a passing comment words to the effect that "many funds' 5-year returns ending with the 3rd Qtr. 2013 will really look spectacular."

–Related to the above, a central figure during the Lehman crisis, former Treasury Secretary Hank Paulson was in the news again, saying in remarks at the Economic Club of New York (moneynews.com):

(Another financial crisis) is 'a certainty.' As long as we have markets, as long as we have banks, no matter what the regulatory system is, there will be flawed government policies. Those policies will create bubbles. They will manifest themselves in a financial system no matter how it's structured and how it's regulated. But the key thing is to have the tools and the political will to act forcefully to limit a crisis

–"Twitter's secret IPO undermines its mission of transparency."  –The Guardian, echoing a thought many have had this week, where Twitter's "confidential" filing would seem to indicate "less than $1bn in revenues."  The piece goes on to say, "Its CEO, Dick Costolo, calls the site 'the global town square'…but when Twitter itself goes public, the company makes the strange choice to go undercover." Bloomberg reported that Goldman Sachs won the lead underwriting role for the IPO. The choice of exchange will be a topic of much interest and speculation to say the least, as what will surely be a growing chorus of rumors on the structure and value of the eventual offering.

Let's close it out there for the week with one further set of notable numbers, these coming from the epic showdown yesterday in college football between Johnny Manziel's Texas A&M and reigning national champion Alabama, won by the Crimson Tide 49-42. Several records were set, but none more remarkable than the fact that "Alabama allowed 628 yards — the most in the program's rich history — and won." (Houston Chronicle)

 

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NBA All-Star Game Coming to New York

NEW YORK (TheStreet) -- The NBA All-Star Weekend is coming to New York City in 2015 and it won't just bring buckets of balls, it will also bring buckets of money. When Florida hosted the game in 2012, Orange County enjoyed more than $95 million in economic impact, according to a study by Strategic Marketing Services and SportsEconomics, LLC. The event also created more than 2,000 jobs and $2.4 million in new tax revenue.

Scott Minto, San Diego State University Sports MBA Director, points out that the timing is good for New York City. "It's a quiet time of the year, tourist-wise," says Minto. "The holidays are over, but it's still winter, so it's a good boost to the city."

Talk about a boost. Visitors are expected to bounce-pass millions of dollars for hotels, car services, food and drinks. Plus, don't forget about the parties. Houston hosted the 2013 NBA All-Star Game and counted 94 separate events and parties connected to it.

"We called it blood money," said Jennifer Mishriky of CTI Ground Transportation in Houston. "Because it was blood, sweat and tears to pull it off. We did a months' worth of work in four days." She also noted that they had to raise their prices during that time, due to the demand for cars. "There are only so many cars to go around, so if you wanted an airport transfer, you had to book the car for a 10-hour day." Some may be offended thinking the fans are getting ripped off, but don't kid yourself -- this is a corporate event. "These are corporations coming in, entertaining clients and throwing parties," said Minto. Plus, he added, "There is an entertainment crossover with the NBA. Actors who wish they were athletes, rappers. It's the hottest ticket in town." Mishriky agrees. "The NBA is the biggest party in town because the rap industry piggybacks the event." Her corporate drivers that normally deliver CEO's to board meetings were unaccustomed to staying out all night waiting for their party-going customers to finish. That shouldn't be a problem in NYC, which thrives on the late-night party.

The Major League Baseball All-Star Game was projected to generate $191.5 million in economic spending according to a study by the New York City Economic Development Corp. New York hosted the game in 2008 and received $148 million in positive economic impact. However, most cities only see about $57 million from the Midsummer Classic (another name for the MLB event). The NYEDC had no figures yet for the actual spending amounts for the game.

The NFL regularly inflates the amount of positive economic impact a city will experience. They typically suggest a gain of $300 million-$400 million, whereas it's normally much lower. Houston's comptroller only found $129 million after hosting the 2004 Super Bowl.

It also isn't too much of a surprise that New York snagged the game. All of the professional sports organizations prefer new and renovated arenas or stadiums for their events. The MLB 2013 game held in New York was at Citi Field, which was just completed in 2009. Similarly, Brooklyn's Barclay Center will host some of the NBA All-Star events and it was completed in 2012, so it too will be three years old when it hosts the Friday and Saturday night events. Madison Square Garden (MSG) will host the Sunday game and it is undergoing a $1 billion transformation.

The 2014 Super Bowl was awarded to the Meadowlands in New Jersey after $300 million was spent on a new stadium. So not only do they like new venues, it's also seen as a thank you to the cities and taxpayers that ultimately foot the bill for these structures. So even though all the hotel workers, cater waiters and for-hire drivers probably won't ever see any of these big games, they will at least get to earn some extra coin that week. After all, they built these places with their taxes, they deserve something -- even if it is just an extra shift. --Written by Debra Borchardt in New York. >To contact the writer of this article, click here: Debra Borchardt. Follow @WallandBroad

Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks.

Fidelity opens mobile check deposits to advisers, B-Ds

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Fidelity Investments today launched mobile check deposit capabilities for its financial advisers, broker-dealers and family office professionals.

Financial professionals who custody with or clear through Fidelity can now take a picture of a check using their smartphone or tablet and securely deposit the funds directly into their clients’ brokerage accounts.

The capability brings Fidelity’s advisers and broker-dealers up to speed with the Fidelity’s individual investors, who have had access to mobile check deposit since it was first introduced in 2011. Investors have deposited nearly $2.5 million a day using the mobile app.

According to a news release, Fidelity Institutional’s mobile applications have been downloaded 22,000 times. Through the app, mobile check deposit will become available to financial advisers who custody with Fidelity Institutional Wealth Services, broker-dealers clearing with National Financial, and family office clients of Fidelity Family Office Services.

“This new mobile offering illustrates our commitment to anticipating technology shifts and helping our clients leverage new innovations effectively,” said senior vice president and head of platform technology, Fidelity Institutional, Edward O’Brien, in the news release. “Mobile check deposit -- a wildly popular consumer app -- was a ‘given’ to adapt for our ‘anywhere advisers’ and family office professionals.”

The Best Small Cap Metastatic Cancer Stocks? AVEO, ONCS & MTST

Small cap biotech stocks AVEO Pharmaceuticals, Inc (NASDAQ: AVEO), OncoSec Medical Inc (OTCMKTS: ONCS) and MetaStat Inc (OTCBB: MTST) are focused on or are developing treatments or diagnostic technologies for metastatic cancers. In case you aren't familiar with the term metastasis or metastatic, it's the spread of cancer from its primary site to other places in the body as cancer cells break away from a primary tumor, penetrate into lymphatic and blood vessels, circulate through the bloodstream and then grow in a new focus (metastasize) in normal tissues elsewhere in the body. In other words, it's a dangerous form of cancer, but there are some small cap biotech stocks targeting it for diagnostics or treatment:

AVEO Pharmaceuticals. Founded on a unique drug discovery and development approach called the Human Response Platform, AVEO Pharmaceuticals is a cancer therapeutics company committed to discovering, developing and commercializing targeted therapies. Back in June, AVEO Pharmaceuticals announced that it had received a Complete Response letter from the FDA denying approval in its present form the New Drug Application (NDA) for AVEO's investigational agent tivozanib for the treatment of patients with advanced metastatic renal cell carcinoma as they want an additional clinical study. AVEO Pharmaceuticals then announced a major strategic restructuring to refocus efforts on the on-going clinical development of tivozanib in colorectal and breast cancer and on the advancement of other key pipeline and preclinical assets.

The company also got a subpoena from the SEC for documents related to the drug – meaning its been a rather messy summer at AVEO for employees and investors alike. Whether its a value play remains to be seen as it may take some time for the company to get back on track. On Thursday, small cap fell 4.19% to $2.17 (AVEO has a 52 week trading range of $2.10 to $11.45 a share) for a market cap of $112.75 million plus the stock is down 72% since the start of the year, down 78% over the past year and down 75.9% since March 2010.

OncoSec Medical Inc. A biotech company focused on creating treatments for advanced-stage skin cancer, OncoSec Medical focuses on three cure-resistant and all-too-often fatal skin cancers: melanoma, Merkel cell lymphoma, and cutaneous T-cell lymphoma. OncoSec Medical's website notes that one in five Americans will be diagnosed with skin cancer in their lifetime and that 10,000 will die this year. To combat such cancers, OncoSec Medical has developed proprietary technology based on electroporation, a process that opens temporary pores in the cell membrane of infected cells through which an anti-cancer agent can be transmitted more effectively. In June, the company announced interim immune response data from the company's Phase II study of ImmunoPulse in patients with metastatic melanoma and that findings showed that ImmunoPulse demonstrated a significant change in tumor immunity following treatment with DNA IL-12 and electroporation. On Thursday, small cap OncoSec Medical fell 0.62% to $0.321 (ONCS has a 52 week trading range of $0.18 to $0.49 a share) for a market cap of $28.38 million plus the stock is up 50.7% since the start of the year, up 68.1% over the past year and down 78.9% since April 2011.

MetaStat Inc. Focused on developing and commercializing novel diagnostic technologies and therapeutics for the early and reliable prediction and treatment of systemic metastasis, MetaStat's 15 plus years of collaboration with four scientific/academic institutions has led to the company to develop a licensed proprietary platform of technologies based on the identification of a common pathway for the development of metastatic disease in solid epithelial-based tumors. This collaboration revolves around the discoveries that: The "MetaSite™," the micro-anatomical site, or "window" in the blood vessels that metastatic cells squeeze through to enter the blood stream to begin their deadly spread. The pivotal role of the Mena protein and its isoforms in the metastatic cascade.

MetaStat is developing two function-based diagnostic product lines: 1) MetaSite Breast™ test to target breast cancers and 2) The MenaCalc™ a platform of diagnostic assays which will be broadly applicable in solid epithelial-based cancers (including breast, prostate, lung and colorectal cancers). Besides these product lines, MetaStat is developing the MenaBloc™ therapeutic platform with the goal of discovering the inhibitors of the Mena pathway that can be advanced as anti-cancer therapeutics. On Thursday, small cap MetaStat fell 6.25% to $1.50 for a market cap of $32.2 million.

Of course, investing in small cap biotech stocks aren't for the risk adverse, but AVEO Pharmaceuticals, OncoSec Medical and MetaStat and their technologies and treatments just might be worth taking a closer look at.

The Trouble with Jakks Pacific (JAKK)

Background: Jakks Pacific (JAKK) is a company which I started following after it was suggested as a special situation by Adib Motiwala [gurufocus]. Oaktree Capital approached Jakks with an interest to acquire it at $20 a share. The company was trading at around $15 at that time. In September 2011, Oaktree went public with the offer but Jakks management adopted poison pill in an attempt to rebuff the plan [bloomberg]. The company now trades at $5 and change. The question is, is it cheap enough to buy?

Holdings: Oaktree, founded by Howard Marks, made an offer of $20. David Dreman holds 5.9% of the company. The management holds 2.3%, chiefly because of stock rewards. This is surprising because the current CEO was the co-founder of the company.

Business: I don't particularly like Jakks' business. On the surface, it is toy-maker and marketer but it does not own (almost) any of the brands. It licences the trademarks from companies who own the brands, e.g. Disney (DIS), Warner Bros, Star Wars, Hello Kitty, Nickelodeon. Once it licenses them, it produces toys and other consumer products and sells them in Toys 'R' Us, Walmart and Target (these three represents 41% of the sales for the last six months). It has to pay an upfront guarantee and also license fees in return of using the brand name.

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There are several problems with the business, the chief being children outgrowing toys at a much younger age, in favor of more interactive and high technology products. The life cycle of individual products is also decreasing and they are becoming obsolete sooner. The toys that Jakks sells at the mega stores like Walmart are not really top notch quality. This also acts as a detriment for customers who expect quality, and functionality (for example: Hasbro, Mattel and Lego toys).

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Fueled by acquisitions, the company's sales increased quite dramatically and had nearly tripled by 2008. But the situation turned during the recession and the sales are plummeting. The company gave another sales warning last quarter.

Profitability & Cash flows: The cash flow history of the company is strong. But this does not complete the picture. The company's gross margin has declined year after year. Given that the company does not own the brands, it acts as a "laborer" for the license owners. Companies like Disney take a guarantee and charge license fees from Jakks, which gets stuck with producing and selling the toys and assuming all business risk. It has to manufacture the toys, and hope that it remains famous until it can earn enough money to justify the fee it paid. It seems that with time, the situation has become bleaker.

Management: The company generated a lot of cash in the last 10 years -- at an average rate of $52.6 million a year. The management made some really awful acquisitions and wrote off nearly $400 mn of goodwill in 2008. To put that figure in perspective, the company had a market cap of $500 million at that time (it has a market cap of $112 million now).

The question is - why did the company not sell itself to Oaktree? Taking a page from Charlie Munger there is a one word explanation -- incentives.

As I pointed out, it is surprising that the management, which includes the cofounder as the CEO, holds less than 3% of the company. This too is due to option and stock rewards.

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For the management, the company is a golden egg laying goose. Their profit is aligned with increasing the sales and not by realizing value for the share! holders b! y the sale of the company.

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For a company with such a small market cap, the executive compensation is truly outrageous. The five directors get paid an average of $200k. They sit of the compensation committee and group Jakks with its "peers" -- Activision, Electronic Arts, Hasbro, Leapfrog, Mattel ... for the purpose of deciding the executive compensation. I just want to make it clearer that Jakks is not in the same peer group as these other companies. Chiefly because they own their brands. Furthermore, they don't just produce the toys but also design and own the intellectual rights for new ones. Even if they outsource the production of their products, they will still earn money on the licensing fees.

Balance sheet: The company has $69 million in cash and $96 mn in long term debt. Although not particularly burdensome, I must point out that all this debt is convertible. In situation of extreme duress the shareholders will be diluted if the debt is converted into shares. The balance sheet is quite strong at the moment. If the company continues to lose money -- the situation might not remain so.

Bottomline -- I don't know why Oaktree offered $20 a share for the company. At the time of the offer, the company had a much better balance sheet with nearly $200 million in net cash. It might be that Oaktree expected to sell the business for a higher price. When the going gets tough, there are a wave of acquisitions and bankruptcies. Synergies could be achieved to drive the gross margin higher -- if the company makes toys of its own brands.

I will advise staying away from the company. I don't like the business and I don't like the management. I will cede that at these prices the incentive of the management will be to turn the company around. Given their history of acquisitions,! I lack f! aith in their ability to do so.

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Opening Print and S&P Levels to Watch

Global stocks, shares, bonds and currencies all surged, with algorithm and program trading driving the orders after yesterday's surprise decision by the U.S. Federal Reserve not to curtail its asset-buying program. As the Federal Reserve headlines hit the tape the trading pits of the CME Group's financial room exploded, hitting out buy stops in both the index and interest rate futures and options. Algorithmic and program trading takes up so much space in the futures markets that tools that used to work don't anymore. The program writers have figured out every tool we use, even the plus or minus 1000 -1300 ticks and the new indicators (if they work) don't last very long. If it's not tied to an algorithm you can forget it .That means that traders to constantly be looking for a new edge. Whether its learning "pivots and vol windows" or learning how to read the program levels in the S&P. As for today we have eight economic numbers , some Fed speak and the last day of the September rollover. With all the talk of the Fed most people have not paid much attention to this Friday's September Quadruple Witching. While it is no way the event that it used to be it still needs to be on your radar. Accordingly, the Ned Davis S&P cash study shows pre-expiration Thursday was up 16 and down 13 of the last 29 occasions; expiration Friday up 17 / down 12 of the last 29 occasion and next Monday (or the first trading day after the expiration ) up 9 / down 20 of the last 29. Our view: The S&P futures have rallied to 1725, a full 100 handles from their 1625 taper low. Additionally, the S&P futures have closed higher eight out of the last nine session, or up four in a row. Provided the economic reports don't surprise and knowing the S&P is the global leader it may be rest time for the ESZ. As firm as the S&P acts the futures have gone 85 handles in the last 11 days. After a big day up like yesterday and knowing the news is out we lean to a side ways to lower S&P today. Not saying the S&P can't or won't rally, but we think it will sell off a bit today. As always, use stops and keep an eye on the 10-handle rule. Don't forget to catch MrTopStep on The Closing Print video. We report directly from the SPX pits, wrapping up the day and positioning for trade tomorrow. OptionsProfits can be followed on Twitter at twitter.com/OptionsProfits MrTopStep can be followed on Twitter at twitter.com/MrTopStep For LIVE futures chat, more information on the 10-handle rule and futures educational content CLICK HERE FOR A SEVEN-DAY FREE TRIAL.

DOL Provides Guide on DOMA’s Impact on ERISA

The Department of Labor on Thursday announced new guidance interpreting the Supreme Court’s decision in United States v. Windsor, which overturned the Defense of Marriage Act, and its impact on the Employee Retirement Income Security Act.

In a technical release, the department’s Employee Benefits Security Administration provides guidance to plans, plan sponsors, fiduciaries, participants and beneficiaries on the decision’s impact on ERISA.

The release states that, in general, the terms “spouse” and “marriage” in Title I of ERISA and in related department regulations should be read to include same-sex couples legally married in any state or foreign jurisdiction that recognizes such marriages, regardless of where they currently live.

On June 26, the Windsor decision struck down the provisions of the Defense of Marriage Act that denied federal benefits to legally married, same-sex couples.

Labor Secretary Thomas Perez said in a statement that “This decision represents a historic step toward equality for all American families, and I have directed the department’s agency heads to ensure that they are implementing the decision in a way that provides maximum protection for workers and their families.”

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DOL, he said, “plans to issue additional guidance in the coming months as we continue to consult with the Department of Justice and other federal agencies to implement the decision.”

Phyllis Borzi, assistant secretary for EBSA, said in the same statement that “by providing greater clarity on how the Supreme Court’s decision affects one of the laws we enforce, we are contributing to greater equality and greater protection for America’s working families.”

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Check out Tax Milestone Nears for Same-Sex Couples on ThinkAdvisor.

Apple’s Handheld TV, and All the Other Video Devices

How big does a  smartphone or tablet screen have to be before it can be considered a TV? Apple Inc. (NASDAQ: AAPL) apparently will test an iPhone with a six-inch screen, according to The Wall Street Journal. However, it is not a tablet, at least as far as the traditional definition of tablets goes. A small step up in size, RCA makes a 13.3 inch television screen. The breadth of screen sizes opens the question of what is a smartphone, a tablet or a TV, and what some can watch based on their deteriorating vision.

Does the screen size debate matter? Yes, to the extent of what people are willing to do with a device. It is assumed that a smartphone is portable enough to carry in a pocket, probably. And a tablet has to fit in a brief case or backpack, perhaps. A television is a free-standing device that has to go on a stand or on a wall, or be suspended by wire from a ceiling.

Another question about screen size is what people will do with a device, what will they use it for? New wearable watches may have screens too small to view anything but video clips. Tablet screens may be too small to watch some HD programs. TVs are bolted-down devices, no matter how well they display video content.

The consumer electronics industry still makes distinctions that may be false, at least as far as many consumers are concerned. That cracks open the door to whether definition matters in a world in which the utility of screen size is more a matter of what content it can play and the extent to which the display is acceptable to consumers.

It may be that the only line of demarcation left in the spectrum from video watches to televisions is price. Perhaps consumers believe that the larger the screen, the more they will need to pay. That line has been blurred, too. Philips makes a 32-inch screen that retails for $450 (used) on Amazon.com Inc. (NASDAQ: AMZN). As a matter for fact, Amazon may be the largest warehouse of video devices. It sells the tiny Samsung Rugby III handset and television screens of more than 70 inches.

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The line between video viewing devices already has disappeared to the point where size matters less and less. The definition probably is based on whether consumers believe that labels mean anything as video devices grow bother larger and smaller. Perhaps the line that gets drawn is based on age. People older than 65 own televisions in greater numbers than smartphones. However, for older people, the definition may not matter either. They just cannot see small screens as their vision gets worse. Otherwise, they might want that six-inch screen iPhone just like everyone else does.

The American Way - Micro Caps

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Bronx-born investing phenom Mario Gabelli, GAMCO Investors' chairman and CEO, has a portfolio supportive of micro cap companies. Small companies and new ventures can be seen as an inspiration, reminding us of our freedom to create anything starting from scratch. Micro-cap businesses, the individuals who start them, and the investors who believe in them, are the best reminders that the U.S. is a land where dreamers and doers thrive.

The recently updated portfolio of GAMCO Investors has 799 stocks, 50 of them new, with a total value of $15.9 billion. The firm has a quarter-over-quarter turnover of 4%. Here's a detailed look at four micro cap companies in the GAMCO portfolio.

LGL Group Inc. (LGL) – Market Cap $15 Million

LGL Group Inc. is down 4% over 12 months. The company has a market cap of $15 million; its trades with a P/B ratio of 0.60.

Incorporated in 1928, LGL Group Inc. is a producer of industrial and commercial products and services and is currently focused on the design and manufacture of highly-engineered electronic components and subsystems. The company operates through its main subsidiary, M-tron Industries Inc.

Guru Mario Gabelli had increased his position by 596.76% in the second quarter, but reduced it by 72.56% as of Aug. 6, 2013, leaving current shares at 244,261. In ten quarters of trading, Gabelli has averaged a loss of 22% on 7,725,102 shares bought at an average price of $7.39 per share.

Jim Simons is the other Guru stakeholder. Check out his increase of 478.43% in the second quarter of 2013.

Historical share pricing, revenue and net income:

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Eastern Co. (EML) - Market Cap $96.49 Million

Eastern Co. is down 16% over 12 months. The company has a market cap of $96.49 million; its trades at around $1! 5.55 with a P/E ratio of 13.60 and a P/B ratio of 1.30.

Incorporated in 1912, Eastern Co. is a manufacturer of industrial hardware, security products and metal castings. It primarily operates in the U.S., Canada, Mexico, Taiwan and China.

Guru Mario Gabelli increased his EML position in the second quarter by 23.75%. He bought 9,500 shares at an average price of $15.54, for a gain of 0.1%. His current shares are at 49,500.

Historical share pricing, revenue and net income:

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As of June 30, 2013, three Gurus hold EML shares.

Dolan Co. (DM) – Market Cap $81.8 Million

Dolan Co. is down 42% over 12 months. The company has a market cap of $81.8 million; its trades at around $2.65 with a P/B ratio of 1.10.

Dolan Co. is a publisher and provider of necessary business information and professional services to the legal, financial and real estate sectors in the United States. It provides companies and professionals in the markets it serves with access to timely, relevant and dependable information and services that enable them to operate effectively in highly competitive and time sensitive business environments.

Guru Mario Gabelli made a new buy in the second quarter of 2013. He bought 30,000 shares at an average price of $1.79, for a gain of 48%. His current shares are at 30,000.

Historical share pricing, revenue and net income:

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A total of four Gurus hold DM as of June 30, 2013.

Canterbury Park Holding Corporation (CPHC) – Market Cap $46.35 Million

Canterbury Park Holding Corporation is up 2% over 12 months. The company has a market cap of $46.35 million; its trades around $11.16 with a P/E ratio of 59.30 and a P/B of 1.70.

Canterbury Park Holding Corporation was incorporated on March 24, 1994. It conducts pari-mutuel wagering oper! ations an! d hosts unbanked card games at its Canterbury Park Racetrack and Card Casino facility in Shakopee, Minn. The company's pari-mutuel wagering operations include both wagering on thoroughbred and quarter horse races during live meets at the Racetrack each year from May until September and year-round wagering on races held at out-of-state racetracks that are televised simultaneously at the Racetrack.

Guru Mario Gabelli increased his position by 3.18%, as of Sept. 5, 2013, leaving remaining shares at 447,944. Gabelli now holds 10.74% of shares outstanding.

Over his trading history, he averaged a gain of 27% on 189,052 shares bought at an average price of $8.76. On shares sold, he averaged a gain of 45% on 155,832 shares sold at an average price of $7.69 per share.

Gabelli is the only Guru stakeholder as of June 30, 2013.

Historical share pricing, revenue and net income:

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Here's the rest of Guru Gabelli's portfolio.








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GuruFocus Real Time Picks reports the stock purchases and sales that Gurus have made within the prior 2 weeks. The report time lag can be as short as 2 days after the date of the transaction. This feature is for Premium Members only.

Check out the Guru Focus special feature 52-week low screener to find the stocks hitting new lows but are still held by top investor Gurus and Insiders.

Hot Insurance Companies To Invest In Right Now

Some see Obamacare as the law that will bring health insurance to millions who previously couldn't afford it. Others see the legislation as the law that made government too involved in health care. Regardless of one's perspective on Obamacare, there's one thing that it seems headed to become: the law of unintended consequences.�

As full implementation of the law nears, several potential trouble spots have emerged. Here are three that the framers of Obamacare probably didn't see coming.

1. Less availability of health care�
The primary reasoning behind Obamacare was to bring access to health care to more people. Unfortunately, the opposite could occur in some places.�

Obamacare imposes steep funding cuts on hospitals, particularly those that serve poor and uninsured patients, with the assumption that more of the hospitals' patients would be covered by Medicaid. However,�the law's requirement that forced states to expand Medicaid was struck down by the Supreme Court. Hospitals in at least 15 states that won't pursue Medicaid expansion will be squeezed heavily.

Hot Insurance Companies To Invest In Right Now: American International Group Inc.(AIG)

American International Group, Inc. is an international insurance organization. The company operates property and casualty insurance networks worldwide and conducts activities in the U.S. life insurance and retirement services industry. It also involves in commercial aircraft leasing and residential mortgage guaranty insurance businesses. The company, through Chartis Inc., provides various property and casualty insurance products under commercial and consumer categories worldwide. These products include surplus lines, executive liability/directors? and officers? liability, employment practices, excess casualty, and travel/assistance lines. American International Group, through SunAmerica Financial Group, offers a suite of life insurance and retirement products and services, including term life, universal life, accident and health, fixed and variable deferred annuities, fixed payout annuities, mutual funds, and financial planning products and services to individuals and grou ps in the United States. The company, through International Lease Finance Corporation, operates as an aircraft lessor that acquires commercial jet aircraft from various manufacturers and other parties, and leases those aircraft to airlines worldwide. It also sells aircraft from its fleet to other leasing companies, financial services companies, and airlines, as well as provides management services to third-party owners of aircraft portfolios. American International Group, through United Guaranty Corporation, issues residential mortgage guaranty insurance that covers mortgage lenders from the first loss for credit defaults on high loan-to-value conventional first-lien mortgages for the purchase or refinance of one- to four-family residences in the U.S. and internationally. The company was founded in 1967 and is based in New York, New York.

Advisors' Opinion:

• [By Victor Mora]

  AIG is an international insurance provider that is still seeing a recovery from �the 2008 Financial Crisis. The stock has been coasting higher over the last couple of years but may be coming up against some selling pressure soon. Over the last four quarters, earnings have been decreasing and revenue figures have been mixed. However, investors in the company have been optimistic about the earnings reports. Relative to its peers and sector, AIG has been a year-to-date performance leader. WAIT AND SEE what AIG does in coming quarters.

• [By Victor Mora]

  AIG provides valuable insurance products that ease concerns for consumers and companies participating in various industries worldwide. The stock was severely damaged during the 2008 Financial Crisis but is now beginning to recover. Earnings and revenue figures have been improving which has kept investors happy. Relative to its peers and sector, AIG has been a year-to-date performance leader. Look for AIG to OUTPERFORM.

Hot Insurance Companies To Invest In Right Now: CNO Financial Group Inc. (CNO)

CNO Financial Group, Inc., through its subsidiaries, engages in the development, marketing, and administration of health insurance, annuity, individual life insurance, and other insurance products for senior and middle-income markets in the United States. The company markets and distributes Medicare supplement insurance, interest-sensitive and traditional life insurance, fixed annuities, and long-term care insurance products; Medicare advantage plans through a distribution arrangement with Humana Inc.; and Medicare Part D prescription drug plans through a distribution and reinsurance arrangement with Coventry Health Care. It also markets and distributes supplemental health, including specified disease, accident, and hospital indemnity insurance products; and life insurance to middle-income consumers at home and the worksite through independent marketing organizations and insurance agencies. In addition, the company markets primarily graded benefit and simplified issue life insurance products directly to customers through television advertising, direct mail, Internet, and telemarketing. It sells its products through career agents, independent producers, direct marketing, and sales managers. CNO Financial Group, Inc. has strategic alliances with Coventry and Humana. The company was formerly known as Conseco, Inc. and changed its name to CNO Financial Group, Inc. in May 2010. CNO Financial Group, Inc. was founded in 1979 and is headquartered in Carmel, Indiana.

Best Casino Stocks To Watch For 2014: Cincinnati Financial Corporation(CINF)

Cincinnati Financial Corporation engages in the property casualty insurance business in the United States. Its Commercial Lines Property Casualty Insurance segment provides coverage for commercial casualty, commercial property, commercial auto, and workers? compensation. It also offers specialty packages, including coverages for property, liability, and business interruption for specific industry classes, such as artisan contractors, dentists, or street businesses. In addition, this segment provides contract and commercial surety bonds, fidelity bonds, and director and officer liability insurance, as well as machinery and equipment coverage. The company?s Personal Lines Property Casualty Insurance segment offers coverage for personal auto and homeowners, as well as other insurance products, such as dwelling fire, inland marine, personal umbrella liability, and watercraft coverages to individuals. Cincinnati Financial?s Excess and Surplus Lines Property Casualty Insurance s egment offers commercial casualty insurance that covers businesses for third-party liability from accidents occurring on their premises or arising out of their operations, including products and completed operations; and commercial property insurance, which insures loss or damage to buildings, inventory, equipment, and business income from causes of loss, such as fire, wind, hail, water, theft, and vandalism. The company?s Life Insurance segment provides term insurance; universal life insurance; whole life insurance; and worksite products, which include term, whole life, universal life, and disability insurance offered to employees through their employer. This segment also markets disability income insurance, deferred annuities, and immediate annuities. Its Investment segment invests in fixed-maturity investments, equity investments, and short-term investments. Cincinnati also offers commercial leasing and financing services. The company was founded in 1950 and is headquarte red in Fairfield, Ohio.

Hot Insurance Companies To Invest In Right Now: Marsh & McLennan Companies Inc. (MMC)

Marsh & McLennan Companies, Inc., a professional services company, provides advice and solutions in the areas of risk, strategy, and human capital. It operates in two segments, Risk and Insurance Services, and Consulting. The Risk and Insurance Services segment provides risk management and insurance broking, reinsurance broking, and insurance program management services for businesses, public entities, insurance companies, associations, professional services organizations, and private clients. The Consulting segment offers advice and services to the managements of organizations in the area of human resource consulting, comprising retirement and investments, health and benefits, outsourcing and talent; and strategy and risk management consulting, such as management, economic, and brand consulting. The company also provides investment consulting services for endowments and foundations in the United States; health and benefit recordkeeping, and employee enrollment technology; human resource knowledge, data, and solutions for professionals in various industries; and Medicaid policy consulting services. It principally serves customers in the United States, the United Kingdom, the Asia Pacific, and Continental Europe. Marsh & McLennan Companies, Inc. was founded in 1871 and is headquartered in New York, New York.

Advisors' Opinion:

• [By CRWE]

  Marsh & McLennan Companies, Inc. (NYSE:MMC) held its annual meeting of shareholders, at which the Company announced that its Board of Directors has voted to increase the Company�� quarterly cash dividend by 5 percent to $.23 per share on outstanding common stock.

Hot Insurance Companies To Invest In Right Now: MGIC Investment Corp (MTG)

MGIC Investment Corporation (MGIC), incorporated June 21, 1984, is a holding company and through wholly owned subsidiaries is a private mortgage insurer in the United States. As of December 31, 2012, its principal mortgage insurance subsidiaries, Mortgage Guaranty Insurance Corporation (MGIC) and MGIC Indemnity Corporation (MIC), were each licensed in all 50 states of the United States, the District of Columbia and Puerto Rico. During the year ending December 31, 2012, the Company wrote new insurance in each of those jurisdictions in MGIC and/or MIC. The Company capitalized MIC to write new insurance in certain jurisdictions where MGIC no longer meets, and is unable to obtain a waiver of, those jurisdictions��minimum capital requirements. Private mortgage insurance covers losses from homeowner defaults on residential mortgage loans, reducing and, in some instances, eliminating the loss to the insured institution if the homeowner defaults.

Mortgage Insurance

Primary insurance provides mortgage default protection on individual loans and covers unpaid loan principal, delinquent interest and certain expenses associated with the default and subsequent foreclosure. Primary insurance is written on first mortgage loans secured by owner occupied single-family homes, which are one-to-four family homes and condominiums. Primary insurance is also written on first liens secured by non-owner occupied single-family homes, which are referred to in the home mortgage lending industry as investor loans, and on vacation or second homes. Primary coverage can be used on any type of residential mortgage loan instrument approved by the mortgage insurer.

When a borrower refinances a mortgage loan insured by the Company by paying it off in full with the proceeds of a new mortgage that is also insured by it, the insurance on that existing mortgage is cancelled, and insurance on the new mortgage is considered to be new primary insurance written. Therefore, continuation of its coverage fr! om a refinanced loan to a new loan results in both a cancellation of insurance and new insurance written. When a lender and borrower modify a loan rather than replace it with a new one, or enter into a new loan pursuant to a loan modification program, its insurance continues without being cancelled assuming that the Company consent to the modification or new loan.

The borrower�� mortgage loan instrument requires the borrower to pay the mortgage insurance premium. There are several payment plans available to the borrower, or lender, as the case may be. Under the monthly premium plan, the borrower or lender pays it a monthly premium payment to provide only one month of coverage. Under the annual premium plan, an annual premium is paid to it in advance, and it earns and recognizes the premium over the next 12 months of coverage, with annual renewal premiums paid in advance thereafter and earned over the subsequent 12 months of coverage. Under the single premium plan, the borrower or lender pays it a single payment covering a specified term exceeding twelve months.

Pool insurance is used as an additional credit enhancement for certain secondary market mortgage transactions. Pool insurance covers the excess of the loss on a defaulted mortgage loan which exceeds the claim payment under the primary coverage, if primary insurance is required on that mortgage loan, as well as the total loss on a defaulted mortgage loan which did not require primary insurance. Pool insurance is used as an additional credit enhancement for certain secondary market mortgage transactions. Pool insurance covers the excess of the loss on a defaulted mortgage loan, which exceeds the claim payment under the primary coverage, if primary insurance is required on that mortgage loan, as well as the total loss on a defaulted mortgage loan which did not require primary insurance. In general, the loans insured by it in Wall Street bulk transactions consisted of loans with reduced underwriting documentation; cash out! refinanc! es, which exceed the standard underwriting requirements of the Federal National Mortgage Association (Fannie Mae) and Federal Home Loan Mortgage Corporation (Freddie Mac) (collectively GSEs); A- loans; subprime loans, and jumbo loans.

Other Products and Services

The Company has participated in risk sharing arrangements with the GSEs and captive mortgage reinsurance arrangements with subsidiaries of certain mortgage lenders, which reinsure a portion of the risk on loans originated or serviced by the lenders, which have MGIC primary insurance. It provides information regarding captive mortgage reinsurance arrangements to the New York Department of Insurance (known as the New York Department of Financial Services), the Minnesota Department of Commerce and the Department of Housing and Urban Development, (HUD). It performs contract underwriting services for lenders, in which it judges whether the data relating to the borrower and the loan contained in the lender�� mortgage loan application file comply with the lender�� loan underwriting guidelines. It also provides an interface to submit data to the automated underwriting systems of the GSEs, which independently judge the data. These services are provided for loans, which require private mortgage insurance, as well as for loans that do not require private mortgage insurance. It provides mortgage services for the mortgage finance industry, such as portfolio retention and secondary marketing of mortgages.

The Company competes with Federal Housing Administration, Veterans Administration, PMI Mortgage Insurance Company, Genworth Mortgage Insurance Corporation, United Guaranty Residential Insurance Company, Radian Guaranty Inc., CMG Mortgage Insurance Company, and Essent Guaranty, Inc.

Hot Insurance Companies To Invest In Right Now: ING Groep NV (ING)

ING Groep N.V. (ING), incorporated in 1991, is a global financial institution offering banking, investments, life insurance and retirement services to meet the needs of the customers. The Company�� segments include banking and insurance. Banking segment includes retail Netherlands, retail Belgium, ING direct, retail central Europe (CE), retail Asia, commercial banking (excluding real estate), ING real estate and corporate line banking. Insurance segment includes insurance Benelux, insurance central and rest of Europe (CRE), insurance United States (US), Insurance US closed block VA, insurance Asia/Pacific, ING investment management (IM) and corporate line insurance. In February 2011, the Company divested its real estate investment operation ING Real Estate Investment Management (ING REIM) to CB Richard Ellis Group Inc. In June 2011, the Company sold Clarion Partners. In July 2011, ING announced the completion of the sale of Clarion Real Estate Securities. During the year ended December 31, 2011, the Company divested its interests in ING Car Lease and ING IM Philippines. In February 2012, Capital One Financial Corp. acquired ING Direct business in the United States from the Company.

In June 2011, ING had completed the sale of its interest in China�� Pacific Antai Life Insurance Company Ltd. In June 2011, ING announced the completion of the sale of real estate investment manager of its United States operations, Clarion Partners, to Clarion Partners management in partnership with Lightyear Capital LLC. In October 2011, ING announced that it had completed the sale of REIM�� Asian and European operations to CBRE Group Inc. In December 2011 ING completed the sale of its Latin American pensions, life insurance and investment management operations.

Retail Netherlands

Retail Banking reaches its individual customers through Internet banking, telephone, call centers, mailings and branches. Using direct marketing methods, it is a provider of current account services an! d payments systems to provide other financial services, such as savings accounts, mortgage loans, consumer loans, credit card services, investment and insurance products. Mortgages are offered through a tied agents sale force and direct and intermediary channels. ING Bank Netherlands operates through a branch network of approximately 280 branches. It offers a range of commercial banking activities and also life and non-life insurance products. It also sells mortgages through the intermediary channel.

Retail Belgium

ING Belgium provides banking, insurance (life, non-life) and asset management products and services to meet the needs of individuals, families, companies and institutions through a network of local head offices, 773 branches and direct banking channels (automated branches, home banking services and call centers). ING Belgium also operates a second network, Record Bank, which provides a range of banking products through independent banking agents and credit products through a multitude of channels (agents, brokers, vendors).

ING Direct

ING Direct offers a range of financial products, such as savings, mortgages, retail investment products, payment accounts and consumer lending products. It operates in Canada, Spain, Australia, France, Italy, Germany, Austria and the United Kingdom. In June 2011, ING Group announced the sale of ING Direct USA to Capital One Financial Corporation.

Retail Central Europe

Retail Central Europe has a presence in Poland, and Romania and Turkey. ING in Poland is an Internet bank. During 2011, ING Bank Turkey launched the Orange account, the variable savings product. ING in Turkey also launched a mobile phone banking application. ING Bank Romania carried out its Internet banking site, Home��ank. In September 2011, a mobile version of the Home��ank Website was introduced.

Retail Asia

Retail Banking has a presence in Asian markets of India, China and Thailand. As o! f Decembe! r 31, 2011, the Company had 44% interest in ING Vysya and 30% interest in TMB Bank in Thailand. Bank of Beijing (BoB), in which ING has the largest single interest (16.07%) is a commercial bank in China. ING provides principally risk management and retail banking to BoB.

Commercial Banking

ING Commercial Banking supports the banking needs of its corporate and institutional clients to invest both retail and commercial bank customer deposits. It is a commercial bank in its home markets in the Benelux, as well as in Germany, Central and Eastern Europe. In addition to the banking services of lending, payments and cash management and treasury, it also provides solutions in other areas, including specialized and trade finance, derivatives, corporate finance, debt and equity capital markets, leasing, factoring and supply chain finance. Payments and Cash Management (PCM) and General Lending are its some of the product lines. Structured Finance (SF) is a specialist commercial lending business, providing loans to support capital intensive investments and working capital. It is managed in three groups: the Energy, Transport and Infrastructure Group; the Specialized Financing Group; and International Trade and Export Finance. Leasing and Factoring (L&F) provides financial and operating leasing services for a range of equipment, as well as receivables financing and other factoring solutions for commercial banking clients. The Financial Markets (FM) is the global business unit that manages ING�� financial markets trading and non-trading activities. FM is managed along three business lines: ALCO manages the interest rates exposures arising from the traditional banking activities, Strategic Trading Platform incorporates the primary proprietary risk taking units, and Clients and Products is the primary customer trading facilitation business line.

Real Estate

During 2011, Real Estate Finance (REF) maintained its credit portfolio. Real Estate Development (ING RED) and! Real Est! ate Investment Management (ING REIM) has a controlled wind down of activities.

Insurance Benelux

Duirng 2011, Nationale-Nederlanden introduced bank pension savings products and annuities. ING Life Belgium introduced a new Universal Life product. Nationale-Nederlanden also received a license from the Dutch Central Bank to launch a defined contribution DC company pension product PPI in Europe. NN Services introduced a processing and information technology system (business process management layer) for several legacy lines of retail Life businesses. NN Services IT manages all the closed book business of Nationale-Nederlanden. ING�� life insurance products in the Benelux consist of a range of traditional, unit-linked and variable annuity policies written for both individual and group customers. ING is also a provider of (re-insured) company pension plans in the Netherlands.

NG Benelux��non-life products, mainly in the Netherlands, include coverage for both individual and commercial/group clients for fire, motor, disability, transport and third party liability. Nationale-Nederlanden has also a central product manufacturing service for property and casualty insurance, which has developed products for ING Bank in Belgium and ING Bank in the Netherlands. ING offers a range of disability insurance products and complementary services for employers and self-employed professionals (such as dentists and general practitioners).

Insurance Central and Rest of Europe

Insurance Central and Rest of Europe has life insurance companies in Hungary, Poland, the Czech and Slovak Republics, Romania, Bulgaria, Greece, Spain and Turkey. It has pension funds in Poland, Hungary, the Czech and Slovak Republics, Bulgaria, Romania and in Turkey. ING offers a range of individual endowment, unit linked, term and whole life insurance policies designed to meet specific customer needs. It also has employee benefits products, as well as pension funds, that manage individu! al retire! ment accounts for individuals. The latter comprise both mandatory and voluntary retirement savings.

Insurance United States (Excluding US Closed Block Va)

ING Insurance US offers retirement services (primarily defined contribution plans), life insurance, fixed annuities, employee benefits, mutual funds, and broker-dealer services in the United States. ING Insurance US operates four businesses: Retirement Plans, Individual Retirement, Individual Life and Employee Benefits. ING Insurance US�� Retirement Plans business is a contribution providers, which offers a range of retirement solutions to all sizes and types of employers, including businesses for-profit ranging from start-ups to large corporations, public and private school systems, higher education institutions, state and local governments, hospitals and healthcare facilities, and not-for-profit organizations. ING Insurance US�� Retirement Plans business is a provider of defined contribution (DC) retirement plans in the United States based on assets under management and administration.

Insurance US Closed Block Va

ING US Closed Block VA consists of variable annuities issued in the United States that are primarily owned by individuals and were designed to address the demand for tax-advantaged savings, retirement planning, and wealth-protection. These annuity contracts were sold in the United States, primarily through independent third party distributors, including wirehouses and securities firms, independent planners and agents and banks.

Insurance Asia/Pacific

ING Insurance Asia/Pacific (IAP) is a provider of life insurance products and services. It is a life insurer in the region, with nine life operations in eight markets. IAP has ip operations in Japan and South Korea, operates a nt business in Malaysia, and is well in China, Hong Kong, Macau, India and Thailand. In April 2011, IAP, together with Public Bank Berhad and Public Islamic Bank Berhad, launched a joint ! venture i! n Malaysia, ING PUBLIC Takaful Ehsan Berhad, which will develop Takaful insurance products. In June 2011, IAP completed the sale of its 50% interest in Pacific-Antai Life Insurance Company Limited (PALIC).

The business units of IAP offer select types of life insurance, wealth management, and retail products and services. These include annuities, endowment, disability/morbidity insurance, unit linked/universal life, whole e, participating life, group life, accident and health, term life and employee benefits. In Hong Kong non-life insurance products (including medical, motor, fire, marine, personal accident and general liability) are also offered.

Insurance Latin America

ING completed the sale of its pensions, life insurance and investment management operations on December 29, 2011. These operations were in Chile, Colombia, Mexico, Peru and Uruguay.

ING Investment Management

ING IM is an investment manager of ING Group with activities in Europe, the Americas, Asia-Pacific and the Middle East. In October 2011, ING IM sold ING IM Australia. ING IM provides a range of actively-managed strategies, investment vehicles and advisory services in all major asset classes and investment styles. It delivers a range of investment strategies and services to ING�� global network of businesses and third-party clients.

Advisors' Opinion:

• [By Victor Mora]

  ING is a financial services company providing service to consumers and companies around the world. The company is being forced to sell its South Korean life insurance unit by European regulators. The stock is now trading near highs for the year and looks poised to continue. Over the last four quarters, earnings have been mixed while revenues have been decreasing, however, investors in the company have been pleased with the company’s recent announcement. Relative to its peers and sector, ING has been an average year-to-date performer. Look for ING to OUTPERFORM.

Lawyers Plotted to Corrupt BP Oil Spill Settlement Program

Alamy NEW ORLEANS -- An independent probe led by former FBI Director Louis Freeh found evidence of a plot by lawyers to "corrupt" the BP (BP) settlement program but nothing that warranted shutting down payments to victims of the company's 2010 oil spill in the Gulf of Mexico, according to a report issued Friday. Freeh, who was appointed by a federal judge to investigate alleged misconduct by a staff attorney who worked on the settlement program, cleared court-appointed claims administrator Patrick Juneau of engaging in any "conflict of interest, or unethical or improper conduct." But the former FBI director concluded that top members of Juneau's staff engaged in conduct that was improper, unethical and possibly criminal. He recommended that his report be forwarded to the Justice Department. "The nature and seriousness of this type conduct varied in degree but was pervasive and, at its extreme, may have constituted criminal conduct," the report said. Juneau said Freeh's report validates his team's work, and he played down the alleged misconduct by two former members of his staff as an "isolated situation." "We will continue the job of processing claims," he said in a statement. "We welcome the recommendations from the Freeh report and we look forward to working with him to help improve all aspects of the claims process." BP spokesman Geoff Morrell said the report "confirms what BP has suspected for some time: there has been fraud and unethical conduct within the facility itself and among various claimants and their lawyers -- and immediate steps need to be taken to prevent it in the future." "The evidence of conflicts of interest and misconduct assembled in Judge Freeh's report is shocking, but it simply underscores that neither BP nor the public has had any idea of what's really going on within the [settlement program]," Morrell said. "Judge Freeh's continued investigation is essential to assuring public confidence in the integrity of the claims process." Two of the lead plaintiffs' lawyers who brokered the settlement with BP last year said Freeh's report "confirmed what we knew to be true all along: that Patrick Juneau has, for more than a year, led the Court-Supervised Settlement Program with integrity, transparency and objectivity." "It is a testament to Mr. Juneau's running of the program that Judge Freeh's recommended that the Settlement Program continue paying claims unabated, with Juneau at the helm," the attorneys, Stephen Herman and Jim Roy, said in a statement. While the report points to certain conduct within the program as problematic, Freeh said, "this should not prevent the [settlement program] from fairly and efficiently processing and paying honest and legitimate claims in a timely manner." It also found that two private attorneys -- Glen Lerner and Jon Andry -- used Lionel Sutton, a lawyer on Juneau's staff, to expedite a claim by their firm for nearly $8 million. In return, Sutton received more than $40,000 in fees from payments on claims he had referred to their law firm before joining Juneau's staff, the report says. Freeh recommended turning over his report to the Justice Department and the U.S. Attorney's Office for the Eastern District of Louisiana to determine whether Sutton, Lerner, Andry or Sutton's wife Christine Reitano, who also worked as a lawyer on Juneau's staff, violated any federal laws "regarding fraud, money laundering and conspiracy." Freeh also recommended that the court consider disallowing the $7.9 million payment of The Andry Law Firm claim based on "long-held principles of equity which prohibit a party before the court to benefit and enrich itself after having engaged in dishonest, unethical and improper conduct." "In this matter, the conduct of The Andry Law Firm is particularly egregious," the report said. "In effect, Mr. Jon Andry's AndryLerner firm was making secret, improper payments to Mr. Sutton at the precise time Mr. Sutton was a senior CAO attorney, working in concert with Mr. Jon Andry to expedite payment of The Andry Law Firm claim." Michael Walsh, an attorney for Lionel Sutton, said Freeh's allegations about his client's conduct possibly warranting a criminal probe are "absolutely unfounded." "There was no criminal activity on Mr. Sutton's part," Walsh said. "If Mr. Sutton had done anything criminally wrong, he would not have cooperated with Mr. Freeh." James Cobb, a lawyer for Andry, said his client hasn't done anything wrong and doesn't deserve to be smeared by Freeh. "It appears to me that Mr. Freeh reached a conclusion first and then worked his way backwards, citing facts which are unsupported in the record," Cobb said. Lawyers for Lerner and Reitano didn't immediately respond to emails seeking comment. Sutton resigned from his job at the settlement program in June. Reitano was fired later the same month. She has demanded to be reinstated, saying she didn't do anything wrong. BP had asked U.S. District Judge Carl Barbier to suspend all settlement payments to businesses and residents pending the outcome of Freeh's investigation, but the judge denied that request on two separate occasions. Freeh's probe isn't over. His report said his work is "ongoing" and will result in recommendations for strengthening the settlement program's operations and anti-fraud measures. In April 2010, the oil drilling rig Deepwater Horizon exploded off the Louisiana coast, killing 11 workers and leading to millions of gallons of oil being spewed into the water. Marshes, fisheries and beaches from Louisiana to Florida were fouled by the oil before the well was sealed. BP set up a compensation fund for individuals and businesses hurt by the spill and committed $20 billion. Juneau took over the processing of claims after the settlement was reached last year.

European Stocks Rise as ECB Holds Benchmark Rate at Low

Simon Dawson/Bloomberg

Dixons Retail Plc, the largest U.K. electronics retailer, jumped the most in nearly five years after receiving an offer from Mutares AG to buy its Pixmania stores.

European stocks climbed as European Central Bank President Mario Draghi reiterated that interest rates will stay low for an extended period, while the Federal Reserve said it saw a modest to moderate U.S. economic recovery.

PSA Peugeot (UG) Citroen added 5.4 percent as its chief executive officer predicted a market-share increase in an interview with Le Parisien. Telecom Italia SpA rose 8.4 percent after a report that Egyptian billionaire Naguib Sawiris may buy a stake in Italy's biggest phone company. TeliaSonera AB slid 1.9 percent as Finland cut its holding in the network operator.

The Stoxx Europe 600 Index added 0.7 percent to 304.55 at the close of trading. The benchmark gauge lost 2.4 percent last week on concern the U.S. and its allies would take military action against Syria after chemical-weapon attacks that President Barack Obama's administration said killed more than 1,400 people.

"Draghi's comments reinforce the view that the central bankers are in no mood to rush any rate rise and in no mood to spook the markets," said Justin Urquhart Stewart, who helps oversee about $6.8 billion at Seven Investment Management in London. "He wants to put recent good economic news into context -- from a flat dull position we at last can see the first shafts of light."

The ECB today kept its benchmark interest rate unchanged at a record low after the 17-nation euro area returned to growth in the second quarter.

Euro Growth

The euro-area economy expanded 0.3 percent in the three months through June. Recent economic indicators point to a further recovery in the second half as an index of services and factory output climbed to the highest level since June 2011 and economic confidence soared to a two-year high.

Still, "the risks surrounding the outlook for the euro area continue to be on the downside," Draghi said at a press conference in Frankfurt. "The Governing Council confirms it expects the key rate to remain at the current l! evel or below for an extended period."

Bank of England officials left their bond-buying program unchanged today at 375 billion pounds ($586 billion), as forecast by all 38 economists in a Bloomberg News survey. They also kept the key interest rate at a record low 0.5 percent.

In the U.S., increased spending on cars and housing helped the economy maintain a "modest to moderate" pace of expansion from early July through late August, even as borrowing costs increased, the Fed said yesterday in its Beige Book business survey of economic conditions.

Syria Vote

The Senate Foreign Relations Committee voted to authorize Obama to conduct a limited U.S. military operation in Syria, the first step toward congressional endorsement of the effort. The full Senate will begin discussing military action from Sept. 9.

The volume of shares changing hands in Stoxx 600 companies was 35 percent higher than the 30-day average, according to data compiled by Bloomberg.

National benchmark indexes advanced in 16 of the 18 western European markets today. France's CAC 40 gained 0.7 percent, while Germany's DAX added 0.5 percent. The U.K.'s FTSE 100 climbed 0.9 percent.

Peugeot, Europe's second-biggest automaker, rose 5.4 percent to 11.24 euros. CEO Philippe Varin forecast an increase in market share in the third quarter, according to an interview with Le Parisien.

Carmakers Advance

A gauge of auto-related companies posted the largest gain of the 19 industry groups on the Stoxx 600. Bayerische Motoren Werke AG, the biggest maker of luxury cars, added 6 percent to 76.97 euros, its highest price since at least 1992. Volkswagen AG, Europe's largest automaker, climbed 1.2 percent to 172 euros. Renault SA advanced 5.8 percent to 56.50 euros.

Telecom Italia (TIT) jumped 8.4 percent to 60.7 euro cents. La Repubblica reported that Sawiris may buy a stake in the phone company. The newspaper didn't cite anyone.

Dixons Retail Plc jumped 5.9 percent to 4! 6.88 penc! e, its highest price in nearly five years. The U.K.'s largest electronics retailer said it's close to exiting its online unit Pixmania after getting an irrevocable offer from Germany's Mutares AG. It has also agreed to sell its Turkish operations in transactions that will rid it of unprofitable businesses and enable it to focus on U.K. growth.

ICAP Plc advanced 6.7 percent to 400 pence. Morgan Stanley raised the world's largest broker of transactions between banks to overweight, similar to a buy rating, from underweight. The brokerage also increased its target price on the stock to 418 pence, citing greater clarity over U.S. rules governing swap-execution facilities and an increasingly attractive risk-reward profile as regulatory risks diminish.

TeliaSonera Stake

TeliaSonera (TLSN) slid 1.9 percent to 47.56 Swedish kronor. Solidium Oy, Finland's equity-asset manager, sold 1.6 percent of shares in the Stockholm-based company in an accelerated book building to institutional investors, it said in a statement.

Aker Solutions ASA slipped 1.6 percent to 91.50 Norwegian kroner. Nomura Holdings Inc. downgraded the oil services group controlled by billionaire Kjell Inge Roekke to reduce, similar to a sell rating, from buy.

"We lower our margins for 2014 and 2015 as the company faces underutilisation at its yards outside Norway owing to competition from Korean companies," the brokerage's note said. Nomura set a target price of 85 kroner on the shares.

Big Reasons To Be Bullish On Europe

After a lengthy period of stagnant growth and lackluster results, the gradual crescendo of improving economic data that's been coming out of Europe lately certainly commands attention.

As our resident expert of the European economy, U.S. Global Emerging Europe Fund (EUROX) Portfolio Manager Tim Steinle has been listing several economic indicators that were turning positive during the investment team's morning meetings. While our entire team keeps track of the economic data and political policies of all the developed G-7 and emerging E-7 countries in the world, Tim keeps his finger on the pulse of European countries.

I previously shared how economic releases have been beating expectations, as shown in the euro zone's spiking Citigroup Citigroup Economic Surprise Index. GDP is recovering too, with expectations that the year-over-year growth rate will significantly improve over the next year and a half.

Positive surprises and improving economic growth aren't the only indications that the region's economy is becoming healthier. Manufacturing appears to be on the mend. The latest reading of the purchasing manager's index (PMI) was at a two-year high and topped the 50-mark. This indication of expansion hasn't happened since July 2011. And, the PMI in Europe expanded at a faster pace than estimated.

Economic confidence in the region has also been rising. In July, it reached a 15-month high. Generally, when sentiment turns positive, businesses invest more and consumers spend more. We believe this improving confidence will potentially spur positive third-quarter economic growth and help the euro zone to exit its recession.

 

Markets Grind Lower; Gold, Oil, IPOs Rally

Associated Press

Markets closed lower Friday, while gold and oil prices rallied. 

“The grinding reality: that the future isn't quite as bright as needed to get the returns expected,” writes Bob Savage, CEO of Track Research.

The Standard & Poor’s 500 Index declined 0.36%, or 6 points, to 1691.42. The Dow Jones Industrial Average fell 72.81 points, or 0.47%, to 15425.51. The Nasdaq was off 0.25%, or 9 points, to3660.11.

The U.S. crude oil benchmark rose more than 2.6% on the day to just more than $106 per barrel. Gold was up 0.27%, or $3.50, to $1,313.40 per ounce.

But things aren’t all bad. A spate of initial public offerings traded at nice prices Friday. Among them was QEP Midstream Partners (QEPM), an energy master limited partnership. (Press release here). More on IPOs from Bloomberg here.

Also sounding the upbeat drum, Tobias Levkovich, equity strategist at Citigroup, wrote Friday afternoon that the longer-term story for U.S. stocks looks quite favorable, and