NBC, the Olympics, and the Value of Live Sports Broadcasting

If there is anything that could be considered a guaranteed revenue generator in the world of TV content it is live sports broadcasting. It retains its pricing power, while its screen of choice is the television set in the home. The latter is important because it commands higher advertising revenue from marketers.

This is why broadcasters like Comcast's (NASDAQ: CMCSA  ) NBC don't mind bidding huge amounts of money to cover the Olympics. The event not only generates significant revenue, it keeps the brand name of the company in front of the world for several weeks, including pre- and post-Olympic coverage.

This is also why the Walt Disney Company (NYSE: DIS  ) with its ESPN franchise and now 21st Century Fox (NASDAQ: FOXA  ) with its new Fox Sports 1 are focusing so strongly on that segment of the TV market.

Why live sports are different
The reason live sports are so in-demand is because of the fact that they are live. Live sports are not one of those pieces of TV content that someone will want to watch after the fact unless there is simply no other way of seeing the event. So on-demand access has little value for sporting events, which makes these events highly lucrative for those media companies that provide the live content.

This is a major reason why ESPN is so powerful and compelling for Disney, as the company has plenty of room to boost prices because of the willingness of sports fans to pay extra for the content.

So even in slow times Disney has as close to a guarantee of a predictable stream of income as there can be in the industry. This is a big moat for Disney because of its day-to-day dominance in that particular segment of the market. Fox, of course, is trying to change that going forward.

In its latest quarter the media networks unit of Disney, which includes ESPN, reported that operating income rose by 20%, with a lot of that coming from the increase in advertising and affiliate revenue from ESPN.

NBC and the Olympics
One major thing I wanted to point out concerning NBC and the Olympics is the fact that approximately 90% of those who watch the Olympics will do so on their television sets. While people generally don't mind watching TV content on smaller devices, they prefer to watch live sports on a bigger screen.

With that in mind, it is estimated that 90% of those who watch the Olympics see the event on a bigger TV in the home, and also that about 90% of the revenue connected to Olympic coverage comes from TV advertising on the big screen.

This means that even though NBC is expected to stream about 1,000 hours of Olympic live events online, only about 10% of the revenue from the event will come from digital viewers. NBC will broadcast 539 hours of the Olympics on television.

Fox Sports 1
While Fox Sports 1 will take some time to get off of the ground, it has a nice start with college football, NASCAR, UFC, and UEFA Champions league available at this time. Major League Baseball games are scheduled to debut in 2014, and coverage of the U.S. Open and FIFA will begin in 2015.

One strength of Fox in the past, which appears to remain with the company, is that it doesn't mind taking a significant amount of time in order to build out a brand. It did this with the original Fox brand, it is doing this with Fox Business, and it will no doubt continue to do this with Fox Sports 1.

Nonetheless, it is attempting to offer compelling content in the short term, such as the upcoming Daytona 500, where it will offer over 80 hours of
coverage. There can be no doubt that this is a showcase event for the new sports network, so the company is going all out to succeed with it. 

Again, the stakes are extremely high in live sports, and in my opinion the companies that win in this important market will be in the strongest positions in the TV industry in the years ahead.

Foolish outlook
Live sports are one of the most important and consistent performers for media companies. Even one-off events like the Olympics can bring in big money, along with the associated prestige.

Even more importantly are those companies that provide consistent, day-to-day coverage on a variety of sports. Advertisers love sports content because viewers don't tend to bypass commercials during these events in the way they do with scripted and reality TV content. This makes live sporting events the most valuable and desired content in the world.

When evaluating media companies, be sure to do your research on their exposure to live sports, as these events will be among the best revenue and earnings generators for these companies.

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Save of the Day: Bargain Bluetooth speakers

It's the deal that sells out every time I feature it. Today a Black Friday Bluetooth bargains makes its final appearance on Ways to Save.

Today's deal packs incredible sound for its size - I kid you not! I bought the Naztech Klub Bluetooth Speakers when they dropped on Black Friday. This sleek, slim aluminium wonder brings heavy bass and clear rich sound. Will these speaker fill your whole home with sound? No. These are designed for a regular sized room, office desk, bathroom or kitchen and ideal for travel.

This Bluetooth Bargain will serve as the perfect companion for your iPod, iPhone, MP3 Player, Android or other Bluetooth-equipped device.

At the time this article was written these extremely well-reviewed speakers were selling for $50 on Amazon (down from $70). I found them for a much lower price and with the deal I found, you also have your choice of five colors: black, silver, blue, pink and purple.

Despite a lot of stock, I expect today's deal to sell-out. I'm a huge fan of this item and hope you like today's deal pick as well. This is a one-day only deal. Want more deals? Follow @MattGranite on Twitter.

Matt Granite is a consumer reporter with Gannett's WKYC station in Cleveland. His 'Save of the Day' report offers tips to consumers on how to save money and features daily deals.

We do not get any financial compensation for mentioning any of these deals or companies. The only purpose of this segment is to save you money.

Ask an Expert: D'oh! How NOT to get hired

Q: "Dear hiring partner: Please find the attached resume. I am very interested in your position and I would make a good fit with your organisation. Sincerely T.F."

A: OK, kids, if you want to know how to NOT get a job, the e-mail I received above is exhibit 1A. Want to know the other exhibits? Read on.

Not long ago I put an ad on Craigslist, looking to hire an assistant. The job entails interesting things like marketing, promotion, and writing, and mundane things like keeping Steve organized. Knowing that money talks, I listed a fee that I thought would attract qualified, smart people.

Three things surprised me as soon as the ad dropped:

1. The number of people who applied for the job. Here it is, a month later, and I am still getting e-mails from people applying for the job. Probably over 250 in all.

2. The number of smart people applying for the job. This was, almost, the most surprising thing. I have had people getting doctorates inquiring about the job, folks who have owned their own business, teachers of 10 years and people who have written books.

3. The number of dumb people applying for the job. This is actually the most surprising part. And I am not talking about dumb dumb, but dumb in the ways of impressing a potential employer.

Here then is how NOT to apply for a job:

1. Have typos in your e-mail or cover letter: As in the letter above misspelling the word "organization," typos and misspellings are clear signals that the person writing the e-mail is either lazy or dim, and neither is an attractive attribute.

Slow down. Double check. Spell check. Yes, we are in the era of "hurry up," and yes, e-mails lends themselves to dashing off a note, but don't. E-mail is how you make your first impression these days, so be sure it is a good one.

2. Start your e-mail with "Hey!" I could not believe how many young people apparently think this is an acceptable introduction. Hint: If you are applying for a job in a business, even in ! this era of the casual workspace, business owners whom you have never met are not your pal. They are your potential employer. Friendly is good, sloppy casualness is not.

3. Send a form letter: Another surprise. Not a few applicants sent me a letter that almost had no connection to the job I posted; clearly just a form letter being sent to the next application.

But the woman I hired for the job, and the few others whom I interviewed, sent me a cover e-mail or letter that was engaging, specific to the job, witty, and/or different. They read my listing, thought about it, and sent an e-mail that impressed.

4. Be boring. With 250 applicants, I had little choice but to make the first cut quickly. I read the e-mail and, unless it grabbed me for some reason, deleted it and moved on. I doubt I am unlike other small business owners in that regard.

5. Make it about you, not them: How many times did I read something like this: "This job is a great fit for me because I want to expand my writing and learn more about business."? Too many. When a potential employer is looking at your application, they want to know what you can do for them and not the other way around.

Look, I know this is a tough job market and you have to apply for a lot of jobs to get an interview (that is why self-employment might be a better choice, but that is a discussion for a different day), but here's the deal: If you want to get your foot in the door, then take the time to apply right.

Today's tip: Looking to hire someone? Here are some tips from SCORE:

"1. Hire slowly. Be willing to invest time and energy in your hiring decisions.

2. Be clear in your own mind what the job requires and measure candidates' qualifications against the requirements of the job.

3. Consider how well a candidate will fit in with your corporate culture. Are her attitudes compatible? Is he cooperative?

4. Narrow the pool to serious candidates. Ways of weeding out non-contenders include announcing that drug te! sting is ! required of all new employees or asking applicants to write a brief essay on why they want the job.

5. Do brief phone interviews with 8 or 10 top candidates to reduce the pool further. Then do longer in-person interviews with two or three finalists."

Steve Strauss is a lawyer specializing in small business and entrepreneurship. His column appears Mondays. E-mail Steve at: sstrauss@mrallbiz.com. An archive of his columns is here. His website is TheSelfEmployed.

Opportunities in the Tech Segment

There aren't many Internet portals that can pride themselves on successfully climbing the industry ladder in only a decade. But, NetEase Inc. ADR (NTES) is one of them. Ever since the Chinese gaming market exploded into a multi-billion dollar business, this online game operator has managed to reach its competitors SINA Corp. (SINA) and Sohu.com Inc. (SOHU), via an extensive brand portfolio of in-house and licensed games. Some of the core online games include Fantasy Westward Journey, Westward Journey Online II and Ghost II.

With Founder and CEO William Ding holding the reigns, this company has taken flight, in particular with its efficient game publishing initiatives and in-house research capabilities. In this article I analyze NetEase Inc.'s past profitability, debt, capital and operating efficiency. I will also take a look at which institutional investors have recently bought stock shares in the last quarter, and based on this information, we will get an understanding of the company' revenues, operating metrics and quality of earnings.

Profitability Analysis

Profitability is a class of financial metric used to analyse a business' ability to generate earnings compared with expenses and other relevant costs incurred during a specific period of time. In this section I will study several profitability metrics, such as return on assets, quality of earnings, cash flows and revenues. By analyzing these four metrics, we will be able to elucidate if the company is really making money.

In addition, I always compare a company's revenue growth and operating cash flow growth. Over the past three years, the company's operating cash flow has increased by 4%. The company augmented its operating cash flow from $4.073 to $4.224. I advise looking for companies with strong cash generation profiles.

ROA - Return on Assets = Net Income/Total Assets

ROA is an indicator of how profitable a company is relative to its total assets, and shows how efficient management is at using its assets to generate earnings. In simple terms, ROA tells you what earnings were generated from invested capital (assets).

I do not like the fact that NetEase Inc.'s ROA decreased from 23.93% in 2010 to a current 20.95%. I am always looking to invest in companies that generate increasing ROA. However, the firm's ratio is evidence of the company generating less from its assets than it did in 2010. The fact that the revenue growth has outpaced the assets growth (-0.13% growth) on a percentage basis, indicates that the company is making money on its assets.

Quality of Earnings

Quality of earnings is the amount of earnings attributable to higher sales or lower costs, rather than artificial profits created by accounting anomalies — such as inflation of inventory. NetEase Inc. augmented its profits at a rate of 23%, but the growth of cash flows was higher, which shows that profits aren't being created through anomalies, such as inventory or accounting practices.

Working Capital

Working capital is a measure of both a company's efficiency and its short-term financial health. This ratio indicates whether a company has enough short-term assets to cover its short-term debt. Anything below 1 indicates negative W/C (working capital), while anything over 2 means that the company is not investing excess assets. Most believe that a ratio between 1.2 and 2.0 is sufficient.

In order to appreciate a company's working capital structure, we need to analyze its current ratio growth. NetEase Inc.'s current ratio has decreased from 6.34 in 2010 to 5.00 in 2012. This shows that the company´s balance sheet was stronger in the past.

Revenue on the Rise

Competing in the gaming market can often-times be complicated, due to low switching-costs and unpredictable gamer preferences. However, NetEase has earned its differential value thanks to a combination of expansion packs, unique gaming experiences and smart marketing, which have contribute to the company's large customer base today. Furthermore, the firm has done a good job at appealing to female gamers, which are growing in volume, by also offering a variety of casual and social games.

This well-spun strategy has ensured that 90% of revenue derives from the gaming market, with the rest attributed to online advertising and wireless value-added services. And although this business model could be risky if the firm's next game launch is unsuccessful, the impressive revenue growth curve of an annual 28% over the past five years leaves me confident in NetEase's profitability.

Gross Margin: Gross Income/Sales

The gross profit margin is a measurement of a company's manufacturing and distribution efficiency during the production process. Investors tend to pay more for businesses that offer higher efficiency ratings than their competitors, as these businesses should be able to make a decent profit as long as overhead costs are controlled (overhead refers to rent, utilities, etc.). Over the past three years, this company's gross margin has increased. The ratio rose from 67.5% in 2010 to 73% in 2013. An increasing margin indicates that the company has, in fact, gained efficiency.

Institutional Sponsorship

It's important to check which hedge funds bought the stock in the last quarter and at what price they did so. I assume that if a prominent institutional investor puts money into NetEase Inc., the stock will pass the strict fundamental standards. In this case, I feel encouraged by the fact that Jim Simons (Trades, Portfolio) bought the stock in the past months at an average price of $68.26, because it shows confidence in the stock's value and profitability.

Analyst Outlook

Currently, many analysts have a good outlook for NetEase Inc. Analysts at MSN Money are predicting that the firm will retrieve EPS of $6.06 for fiscal year 2013 and EPS of $6.83 for fiscal year 2014. Analysts at Bloomberg are estimating the Internet company's revenue to be at $1.76 billion for fiscal year 2013 and $1.99B for fiscal year 2014.

Bottom Line

While selling and marketing expenses have been flat compared to the last fiscal year and operating margins have shrunk slightly, I'm still optimistic about NetEase's future in the gaming industry. With several expansion packs in its pipeline, and management's promise to upgrade its marketing efforts on future PC and mobile games, the company should be ready to stay for the long haul. China's fast-growing gaming market, where the firm holds the second-largest position as online game operator, will undoubtedly be the future growth catalyst.

Furthermore, this might be just the right time for investors looking to buy NetEase shares, as the company is currently trading at an about one-third of the industry average valuation (14.6x P/E vs. 43.9x P/E). For instance, one of the company's main competitors, Sohu.com Inc. (SOHU), trades at 125 times the firm´s earnings, almost 10 times NetEase's valuation. And with the potential for growth at hand, I feel very bullish about this investments profitability.

Disclosure: Victor Selva holds no position in any stocks mentioned.

Currently 5.00/512345 Rating: 5.0/5 (1 vote)

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10 Best Heal Care Stocks To Invest In 2015

The United States Supreme Court decision Monday to hear a case over the validity of President Barack Obama’s recess appointments of three people to the National Labor Relations Board on Jan. 4 will “effectively determine” the constitutionality of Richard Cordray’s appointment as director of the Consumer Financial Protection Bureau, said House Financial Services Committee Chairman Jeb Hensarling.

“The legal validity of any and all actions undertaken by the CFPB are now questionable,” Hensarling (right), a Texas Republican, said in a statement.

Because Obama also attempted to install Cordray as director of the CFPB “on the same day and in the same manner, the Supreme Court’s decision regarding the constitutionality of the NLRB appointments will effectively determine the constitutionality of Cordray’s appointment as well,” Hensarling said.

10 Best Heal Care Stocks To Invest In 2015: Lavendon Group(LVD.L)

Lavendon Group plc, together with its subsidiaries, engages in the rental of powered access equipment. The company offers boom lifts, scissor lifts, van mounts, and truck mounts, as well as telehandlers and fork-lift trucks. Its powered access equipment provide temporary aerial access for people in a range of applications, including industrial repair and maintenance, construction, telecommunications, outside broadcasting, sign erection, and highway maintenance. The company operates an equipment fleet of approximately 21,000 units through a network of 100 depots. It has operations in the United Kingdom, Germany, Belgium, France, Spain, Saudi Arabia, the United Arab Emirates, Bahrain, Oman, and Qatar. The company is headquartered in Lutterworth, the United Kingdom.

10 Best Heal Care Stocks To Invest In 2015: Delta Natural Gas Company Inc. (DGAS)

Delta Natural Gas Company, Inc. distributes or transports natural gas in central and southeastern Kentucky. It operates through two segments, Regulated and Non-Regulated. The Regulated segment sells and distributes natural gas to its retail customers primarily in 23 rural counties. This segment also transports gas to industrial customers on its system who purchase gas in the open market, as well as transports gas on behalf of local producers and other customers not on its distribution system. The Non-Regulated segment purchases natural gas in the open market, primarily from Kentucky producers, and resells this gas to industrial customers on its distribution system and to others not on its system. This segment also produces natural gas that is sold to Delgasco for resale in the open market. The company owns approximately 2,500 miles of natural gas gathering, transmission, distribution, storage, and service lines; and holds leases for the storage of natural gas under 8,000 a cres located in Bell County, Kentucky. It serves approximately 37,000 customers. The company was founded in 1949 and is headquartered in Winchester, Kentucky.

Best Companies To Watch For 2015: MyEcheck Inc (MYEC)

MyECheck, Inc. (MyECheck), incorporated on May 18, 2005, is an electronic transaction data processor. The Company provides an alternative payment solution to paper checks, cards or ACH payments. MyECheck utilizes a method of clearing check data for payments. MyECheck offers implemented solutions that enable real-time payments by authorized electronic check. MyECheck�� electronic check service creates and clears checks using only customer account data without the hassle and delays of paper checks. MyECheck's system enables more payers - any authorized signor on any United States checking account, for any amount. MyECheck's transactions can even be payment guaranteed.

Electronic Check Service

Payer check data is collected by the Merchant either at customer registration, or on their Website, through a mobile device, or over the telephone, and is transmitted in real-time, or in batch to MyECheck for processing. MyECheck uses technology to generate electronic checks in accordance with the Federal Reserve Check 21 specification, and transmits the items to clear through the electronic check clearing system to the Merchant's account at one of its partner banks.

Check Authorization Service

MyECheck offers Check Authorization Service that enables merchants to verify consumer provided data, check the status of their customer�� bank account, provide evidence that the consumer has authorized the check and predict the likelihood of a check being returned unpaid. Transactions are immediately and automatically evaluated and approved or declined based upon the real time results of multiple fraud control tools. Businesses that accept MyECheck payments can use this service to provide an automated real time check authorization to mitigate returned items.

Check Guarantee Service

The check guarantee provider warranties all approved checks and reimburses the Payee (Merchant) for financial losses incurred as a result of returned checks. The C! heck Guarantee Provider buys the returned checks that have been warranted from merchants for the full face value of the returned checks. MyECheck merchants utilize Check Guarantee Service so that they can ship products or provide services immediately without having to wait to determine if the check will be returned unpaid. The Check Guarantee Service also eliminates the need for Merchants to collect on returned checks from their customers.

Advisors' Opinion:

• [By Peter Graham]

  Small cap stocks Rewards Nexus Inc (OTCMKTS: ERNI), MyEcheck Inc (OTCMKTS: MYEC) and ITonis Inc (OTCMKTS: ITNS) fell 29.6%, 18.92% and 9.09%, respectively, last Friday. Moreover, some of these small cap stocks are already making big moves again this morning - perhaps in part because they have all been the subject of recent paid promotions. So where are these small cap heading this week and for the long term? Here is a quick reality check:

10 Best Heal Care Stocks To Invest In 2015: Farmers Capital Bank Corporation(FFKT)

Farmers Capital Bank Corporation, a bank holding company, provides financial services to individual, business, agriculture, government, and educational customers. The company?s deposit products include checking, savings, and term certificate accounts. Its lending products comprise residential mortgage, commercial lending and leasing, and installment loans. The company also offers other services, such as cash management, issuing letters of credit, safe deposit box rental, and funds transfer. In addition, it acts as a trustee of personal trusts; an executor of estates; a trustee for employee benefit trusts; and a registrar, a transfer agent, and a paying agent for bond issues. Further, the company serves as an agent in providing credit card loans; offers investments and other services; and performs data processing services for nonaffiliated entities. As of December 31, 2009, it had 36 banking locations in 23 communities in central and northern Kentucky. The company was foun ded in 1850 and is headquartered in Frankfort, Kentucky.

10 Best Heal Care Stocks To Invest In 2015: Mac-Gray Corporation (TUC)

Mac-Gray Corporation, together with its subsidiaries, operates as a laundry facilities management contractor in the United States. The company, through a portfolio of card- and coin-operated laundry equipment located in laundry facilities, provides laundry convenience to residents of multi-unit housing, such as apartment buildings, condominiums, colleges and university residence halls, public housing complexes, hotels, and motels. It also sells and services commercial laundry equipment to retail laundromats, hotels, and similar institutional users that operate their own on-premise laundry facilities. The company also leases equipment to laundry customers who maintain their own laundry rooms. Mac-Gray Corporation was founded in 1927 and is headquartered in Waltham, Massachusetts.

10 Best Heal Care Stocks To Invest In 2015: Heritage Oil Corp Com Stk Npv (HOC.TO)

Heritage Oil Plc operates as an independent oil and gas exploration and production company. It has an exploration appraisal and development asset in the Kurdistan Region of Iraq; exploration assets in Malta, Tanzania, Pakistan, Libya, and the Democratic Republic of Congo; and a producing property in Russia. The company was founded in 1992 and is headquartered in St Helier, the Channel Islands.

10 Best Heal Care Stocks To Invest In 2015: Terra Tech Corp (TRTC.OB)

Terra Tech Corp., formerly Private Secretary, Inc., incorporated on July 22, 2008, through its subsidiary GrowOp Technology Ltd. (GrowOp Technology) specializes in controlled agricultural technologies. The company integrates breed hydroponic equipment with technology to create solutions for the cultivation of indoor agriculture. It works with horticulturists, engineers, and scientists, to develop and manufacture products for the urban agricultural industry. Its products are utilized by horticulture enthusiasts, local urban farmers, as well as green house growers. Its products can be found through specialty retailers throughout the United States. In April 2013, the Company acquired Edible Garden and its line of locally grown hydroponic produce.

The Company operates in two markets: Commercial AG and Retail AG. The Company�� products include commercial hydroponic and aeroponic systems with automated dosing systems (ADS); digital atmospheric controllers, such as lighting, humidity and carbon dioxide, and commercial greenhouse manufacturing. GrowOp Technology services medical cannabis industry, as well as the small scale traditional hydroponic cultivator. GrowOp Tech manufactures a range of indoor gardening equipment distributed through retail partners throughout the United States and Europe. In addition to its product line it is the creators of mobile controlled agricultural facilities, the BIG Bud and the little Bud, on the market. Its products include high intensity discharge (HID) and light emitting diode (LED) lighting systems, filtration, nutrients, portable hydroponic chamber, and environmental controllers.

10 Best Heal Care Stocks To Invest In 2015: DepoMed Inc.(DEPO)

Depomed, Inc., a specialty pharmaceutical company, develops and commercializes pharmaceutical products based on its proprietary oral drug delivery technologies. It sells Glumetza metformin hydrochloride extended-release tablets that are used as a once-daily treatment for adults with type 2 diabetes in the United States and Canada. The company also focuses to commercialize Gralise gabapentin tablets for the management of postherpetic neuralgia. Its products under development include Serada, which is in Phase III clinical trials for the treatment of menopausal hot flashes; DM-1992 that completed second Phase I study for the treatment of Parkinson's disease; and DM-3458, which completed proof of concept studies for gastroesophageal reflux disease. The company sells its Glumetza to wholesalers and retail pharmacies. It has collaboration or license arrangements with Santarus, Inc.; Merck & Co., Inc.; Covidien, Ltd.; Janssen Pharmaceutica N.V.; Boehringer Ingelheim International GMBH; and PharmaNova, Inc. The company was founded in 1995 and is based in Menlo Park, California.

10 Best Heal Care Stocks To Invest In 2015: Dataram Corporation(DRAM)

Dataram Corporation engages in the development, manufacture, and marketing of large capacity memory products primarily used in high performance network servers and workstations worldwide. The company offers customized memory solutions for original equipment manufacturers (OEMs) and compatible memory for computers manufactured by various companies. It also manufactures a line of memory products for Intel and AMD motherboard based servers. The company sells its memory products to OEMs, distributors, value-added resellers, and end-users. Dataram Corporation was founded in 1967 and is based in Princeton, New Jersey.

10 Best Heal Care Stocks To Invest In 2015: Mint Wireless Ltd(MNW.AX)

Mint Wireless Limited engages in the provision of mobile payment solutions, and consumer electronics technology products and services. The company offers various payment solutions that include Mint Mobile Portable Payments that provides provide different levels of functionality for small, medium, or large enterprises; Mint Online, a personal computer (PC) based system that allows businesses using laptops to process invoices, point of sales (pos), and mobile payments through their laptop or desktop PC; and Mint Voice, an interactive voice response that speaks to the caller with a combination of fixed voice menus and data extracted from databases in real time. It also provides Mint Statement and Invoice Presentment and Payment; Mint Batched Payment Solution, which is designed for organizations that produce batch payment files from internal systems; and Mint Recurring Payments, which can be applied to various business functions. In addition, Mint Wireless supplies audio visua l, memory, phone accessories, and pos/software; DV camcorders, graphic tablets, digital photo frames, and pocket projectors; and vehicle displays, wearable displays, and commercial blue tooth barcode scanners. The company was incorporated in 2006 and is headquartered in Rozelle, Australia. Mint Wireless Limited operates as a subsidiary of TAAJ Corporation Pty Ltd.

10 Best Heal Care Stocks To Invest In 2015: Officemax Incorporated(OMX)

OfficeMax Incorporated, together with its subsidiaries, distributes business-to-business and retail office products. Its Contract segment markets and sells office supplies and paper, technology products and solutions, office furniture, and print and document services directly to large corporate and government offices, as well as to small and medium-sized offices through field salespeople, outbound telesales, catalogs, Internet, and office products stores. As of December 31, 2011, this segment operated 38 distribution centers in the United States, Puerto Rico, Canada, Australia, and New Zealand; 4 customer service and outbound telesales centers in the United States; and 47 office products stores in Canada, Hawaii, Australia, and New Zealand. The company?s Retail segment markets and sells office supplies and paper, print and document services, technology products and solutions, and office furniture to small and medium-sized businesses and consumers through a network of reta il stores. As of December 31, 2011, this segment operated 978 stores in the United States and Mexico; 3 large distribution centers in the United States; and 1 small distribution center in Mexico. The company, formerly known as Boise Cascade Corporation, was founded in 1913 and is headquartered in Naperville, Illinois.

Advisors' Opinion:

• [By Eric Volkman]

  OfficeMax (NYSE: OMX  ) is keeping its dividend level. It will hand out a disbursement of $0.02 per share of its common stock on May 31 to shareholders of record as of May 15. This amount matches each of the firm's previous three payouts, the most recent of which was paid in late February.

• [By Michael Lewis]

  Office Depot (NYSE: ODP  ) scored a win in its merger with fellow big-box supply store retailer Office Max (NYSE: OMX  ) , but is the company out of the proverbial weeds? The Depot saw its shares decline more than 6% Wednesday due to an earnings report that came in under estimates and altogether left investors and analysts unimpressed. No one has any delusions as to the intense technology-fueled disruption facing Office Depot and its recently acquired competitor, but there are levers the company can pull to remain relevant in the future.

• [By Holly LaFon]

  The company�� primarily competitors are Office Depot (ODP), United Stationers (USTR) and Office Max (OMX). Staples has the best gross margins of its competitors, at greater than 26%, and the only one to increase its book value per share since 2001.

• [By Charley Blaine]

  Shares of Office Depot (NYSE: ODP) got a boost, shooting up 3.5 percent to $5.79 after the Federal Trade Commission closed a probe of the company's proposed merger with OfficeMax (NYSE: OMX).

10 Best Heal Care Stocks To Invest In 2015: BioMarin Pharmaceutical Inc.(BMRN)

BioMarin Pharmaceutical Inc. develops and commercializes biopharmaceuticals for serious diseases and medical conditions in the United States, Europe, Latin America, and rest of the world. The company?s commercial products include Naglazyme, a recombinant form of N-acetylgalactosamine 4-sulfatase enzyme used for the treatment of mucopolysaccharidosis (MPS) VI; Kuvan, a proprietary synthetic oral form of 6R-BH4 used to treat patients with phenylketonuria (PKU), a metabolic disease; Aldurazyme used for the treatment of mucopolysaccharidosis I, a genetic disease; and Firdapse used to treat Lambert Eaton Myasthenic Syndrome, an autoimmune disease. It develops GALNS, an enzyme replacement therapy for the treatment of MPS IVA, a lysosomal storage disorder; PEG-PAL, an enzyme substitution therapy that is under Phase II clinical trial to treat PKU; BMN-673, a Phase I/II clinical trial product for the treatment of cancer; BMN-701, an enzyme replacement therapy, which is under Phase I/II clinical trials for Pompe disease, a glycogen storage disorder; and BMN-111, a peptide therapeutic that is under Phase I clinical trial for the treatment of achondroplasia. The company sells its Naglazyme, Kuvan, and Firdapse products to specialty pharmacies and end-users, such as hospitals and foreign government agencies, which act as retailers; and Naglazyme products to distributors and pharmaceutical wholesalers. It has a collaboration agreement with Genzyme Corporation for the manufacture of Aldurazyme; and an agreement with Merck Serono S.A. for the further development and commercialization of Kuvan and other products containing 6R-BH4 and PEG-PAL for PKU. BioMarin Pharmaceutical Inc. was founded in 1996 and is headquartered in Novato, California.

Advisors' Opinion:

• [By Sean Williams]

  BioMarin Pharmaceuticals (NASDAQ: BMRN  )
  BioMarin might as well be considered a long lost sibling of Alexion, since they are both focused on developing rare orphan drugs which have practically no competition and hefty annual price tags, often in six-figures. However, whereas Alexion is profitable, BioMarin has some "'splaining to do," as Desi Arnaz used to say. Estimates in the upcoming quarter call for sales growth of just 8% to $134 million with losses expected to widen to $0.29 per share. Naglazyme's 1% sales increase last quarter didn't impress at all, so it'll need Aldurazyme to really step up if it hopes to maintain its frothy valuation.

• [By Brian Orelli]

  Clovis isn't the only one developing a PARP inhibitor, though. BioMarin Pharmaceuticals (NASDAQ: BMRN  ) presented data at ASCO for BMN673, where 82% of patients with BRCA mutations had a clinical benefit. There were 28 patients in that part of the trial, so the data could be more reproducible than rucaparib's seven out of seven. BioMarin also has solid data for breast tumors with BRCA mutations. Shares of BioMarin actually fell a little today, but I think the data were widely expected to be positive, so there's likely a little "sell the news" going on.

10 Best Heal Care Stocks To Invest In 2015: Advocat Inc.(AVCA)

Advocat Inc., together with its subsidiaries, provides long-term care services to nursing home patients. It offers health care, nursing, personal care, and social services to their patients and residents. The company also provides rehabilitation and nutritional support services. As of June 30, 2011, it operated 9 company-owned and 37 leased nursing centers with 5,364 licensed nursing beds in Alabama, Arkansas, Florida, Kentucky, Ohio, Tennessee, Texas, and West Virginia. The company was founded in 1994 and is based in Brentwood, Tennessee.

Another Bitcoin exchange goes down

Bitstamp, the largest Bitcoin exchange in the world, is under attack and has halted withdrawals.

NEW YORK (CNNMoney) The world's largest Bitcoin exchange, BitStamp, says it has fallen victim to a cyber attack and has halted customer withdrawals.

That makes Bitstamp the second major Bitcoin exchange in a week to prevent customers from withdrawing their money and blaming a technical glitch. Bitstamp and Mt.Gox together house 52% of the bitcoins that trade hands, according to currency trackers at BitcoinCharts.

Since Bitstamp announced the attack Wednesday afternoon, Bitcoin prices have fallen by more than 4% to $640.

Bitstamp said it was hit with a denial-of-service attack, in which attackers flooded its servers with an overwhelming amount of traffic. That caused its system to overload, and Bitstamp was unable to process withdrawals consistently.

The Slovakia-based company said it won't resume processing Bitcoin withdrawals and deposits until it fixes the software problem.

"No funds have been lost and no funds are at risk," the company assured in a statement.

On Friday, Mt.Gox, another major Bitcoin exchange, said it was halting withdrawals until it fixed a software glitch. It has yet to reopen.

Bitcoin values have tumbled since then. The price was above trading as high as $831 on Feb. 6.

Nicolas Cary, whose startup Blockchain developed a Bitcoin digital wallet for smartphones, said the event was "simply a stress-test for Bitcoin and the community," which is working together to solve the problem.

But Edward Harrison, who runs the financial blog CreditWritedowns, said he worries for the many who can't access their money and what it means for currency's future.

"It shows you that the whole Bitcoin system is not quite ready for prime time," he said.

2 Oil & Gas Stocks Spiking on Big Volume

DELAFIELD, Wis. (Stockpickr) -- Professional traders running mutual funds and hedge funds don't just look at a stock's price moves; they also track big changes in volume activity. Often when above-average volume moves into an equity, it precedes a large spike in volatility.

>>4 Stocks Poised for Breakouts

Major moves in volume can signal unusual activity, such as insider buying or selling -- or buying or selling by "superinvestors."

Unusual volume can also be a major signal that hedge funds and momentum traders are piling into a stock ahead of a catalyst. These types of traders like to get in well before a large spike, so it's always a smart move to monitor unusual volume. That said, remember to combine trend and price action with unusual volume. Put them all together to help you decipher the next big trend for any stock.

>>5 Toxic Stocks to Sell Now

With that in mind, let's take a look at several stocks rising on unusual volume recently.

Energy Transfer Equity

Energy Transfer Equity (ETE), through its subsidiaries, provides diversified energy-related services in the U.S. This stock closed up 2.2% at $41.16 in Friday's trading session.

Friday's Volume: 7.22 million

Three-Month Average Volume: 1.67 million

Volume % Change: 346%

>>5 Stocks Under $10 Set to Soar

From a technical perspective, ETE bounced notably higher here right off its 50-day moving average of $39.71 with heavy upside volume. This stock has been trending sideways and consolidating for the last month and change, with shares moving between $38.66 on the downside and $42.74 on the upside. Shares of ETE are now starting to move within range of triggering a big breakout trade above the upper-end of its recent sideways trading chart pattern. That trade will hit if ETE manages to take out some near-term overhead resistance levels at $41.95 to its 52-week high at $43.11 with high volume.

Traders should now look for long-biased trades in ETE as long as it's trending above its 50-day at $39.71 or above more near-term support at $38.66 and then once it sustains a move or close above those breakout levels with volume that this near or above 1.67 million shares. If that breakout hits soon, then ETE will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $50 to $55.

Diamondback Energy

Diamondback Energy (FANG), together with its subsidiaries, focuses on the acquisition, development, exploration and exploitation of onshore oil and natural gas reserves in the Permian Basin in West Texas. This stock closed up 5.4% at $56.72 in Friday's trading session.

Friday's Volume: 1.29 million

Three-Month Average Volume: 774,797

Volume % Change: 175%

>>5 Big Trades to Take in February

From a technical perspective, FANG ripped higher here with above-average volume. This move briefly pushed shares of FANG into new all-time-high territory, since the stock took out some previous overhead resistance at $58.71. Shares of FANG hit an intraday high of $59 before closing well off that level at $56.72. Market players should now look for a continuation move higher in the short-term if FANG manages to take out its new all-time high at $59 with strong volume.

Traders should now look for long-biased trades in FANG as long as it's trending above Friday's low of $55.01 or above $54 and then once it sustains a move or close above $59 with volume that's near or above 774,797 shares. If we get that move soon, then FANG will set up to enter new all-time-high territory, which is bullish technical price action. Some possible upside targets off that move are $65 to $70.

To see more stocks rising on unusual volume, check out the Stocks Rising on Unusual Volume portfolio on Stockpickr.

-- Written by Roberto Pedone in Delafield, Wis.

RELATED LINKS:

>>3 Hot Stocks to Trade (or Not)

>>4 Stocks Under $10 Moving Higher

>>5 Ways to Invest Like a Pension Fund

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.

Russia, in Thrall to Commodities, Has a Bright Spot

News for the emerging markets, including Russia, wasn’t good in 2013, and it is only getting worse in 2014 — with the exception of the hype over the Sochi 2014 Olympics.

Russia’s economy grew just 1.3% last year, according to preliminary estimates, and China’s expanded by less than 8% for the first time in 20 years. Of course, their currencies have been taking a beating. The Russian ruble, for instance, hit a five-year low against both the dollar and euro.

No wonder 54% of investors surveyed late last year by Morgan Stanley said they saw Russia as a “bad” place to invest. But are there any bright spots when it comes to investments with a Russian focus?

Overall, the iShares MSCI Emerging Markets ETF (EEM) took quite a beating over the past 12 months, dropping 12% vs. a nearly 18% in S&P 500 (SPY) during the same period. Year to date, EEM is down 8%, while the S&P has weakened just 4%.

The SPDR E&P Russia ETF (RBL) has underperformed EEM, dropping 15% over the past 12 months and 10% since the start of the year.

Rich in natural resources, Russia’s economy is commodity based, with most exports tied to oil, natural gas, metals and timber.

Commodities have outperformed overall Russia and emerging-market funds, but their returns are far from stellar.

As measured by the iPath S&P GSCI Total Return Index ETN (GSP), global commodities have weakened 2% year to date and are off 8% over the past 12 months. Meanwhile, the S&P International Energy Sector ETF (IPW) is down 5% so far in 2014 and has traded flat sicne early February 2013.

The iShares S&P Global Timber & Forestry Index Fund (WOOD), however, is up 9% since early February of 2013, though it’s down 3% for the past year.

These results put timber ahead of the broader performance of commodities in the short term. The iPath S&P GSCI Crude Oil Total Return Index ETN (OIL), for instance, is down 8% year to date and has a flat 12-month performance.

Precious metals aren’t doing quite as well as timber in 2014, but they are in positive territory. The iPath Dow Jones-UBS Precious Metals Subindex Total Return ETN (JJP) is up 4% year to date but down 30% since February 2013.

The iPath Dow Jones-UBS Industrial Metals Subindex Total Return ETN (JJM), though, has weakened 5% in early 2014. It’s also off 19% on a 12-month basis.

There is one sector critical to Russia that is shining and has done so consistently since early 2013: natural gas.

Top 5 Safest Companies To Own For 2015

The iPath Dow Jones-UBS Natural Gas Subindex Total Return ETN (GAZ) has soared 25% year to date. Its 6-month returns are 40%, while its 12-month performance is a positive 20%.

And the US Natural Gas ETF (UNG), which also reflects changes in futures, has moved up 25% in early 2014, 45% in the past six months and 35% over the past 12 months.

Like Russian investments overall, however, natural gas is a volatile sector. Over the past two years, the S&P has moved up steadily with 30%-plus returns vs. a 20% zig-zag movement of UNG and a loss of 10% for GAZ.

Like an Olympic skier at the games, investors will have to ask themselves if the thrill such gas-themed holdings is worth the bumpy ride. 

Canceled, delayed flights hurt business travelers

The storms and bitter cold that have pounded the U.S. and led to the delay or cancellation of thousands of flights this year have not only taken a financial toll on those in the business of flying, but those dependent on a plane ride to get them to the next business meeting.

Last month, 49,000 flights were canceled by U.S. carriers, while another 300,000 failed to take off on time, says masFlight, a data and software firm that focuses on air travel. Those scuttled and delayed flights disrupted the travel plans of roughly 30 million fliers, and cost them over $2.5 billion in lost work time, and out of pocket costs for everything from meals to an extra night's hotel stay, according to masFlight's estimates.

"It's one for the record books,'' masFlight's CEO Josh Marks said of January's massive number of canceled and delayed flights. "Virtually every major hub from (the) eastern and central United States, with the exception of Miami, was impacted by the weather and caused a systemic impact we haven't seen before.''

Airlines took a financial hit of $75 million to $150 million in January, as they deiced frosty equipment and moved flight crews into place, among other expenses. And now February is off to a rough start, with thousands of flights already canceled in the face of back-to-back storms.

While corporate trekkers aren't the only ones inconvenienced by a scuttled flight, a delayed business trip can spark a ripple effect of canceled meetings, missed deadlines, and potentially dashed opportunities, some experts say.

"What business travelers are weathering this winter is becoming more burdensome'' says Kevin Mitchell of the Business Travel Coalition. "With more major storms on the horizon, diminished productivity could quickly turn into lost business traction and momentum going into a new year . . . That's what could set 2014 apart from many past winters."

Top 10 Stocks For 2015

The client wa! iting for a delayed business traveler to arrive can also lose out, Mitchell adds. For instance, if a consultant has difficulty flying in to help on a project with a tight deadline "the entire schedule and deadlines could be undermined,'' Mitchell says.

Tina Werderman, who provides on-site training, says that she and several of her co-workers found themselves grounded by last month's bad weather. As a result, a couple conference programs they were to participate in had to be called off.

"I couldn't reach mine in New Orleans, but luckily another trainer could so we had to double the group until I arrived,'' says Werderman, a member of USA Today's panel of Road Warriors who lives in Richfield, Wisc.

Road warrior Jon Petz, a professional speaker and entertainer,booked a second, back up flight in January to make sure he made it from his home in Columbus Ohio, to an engagement in Chicago. But even that wasn't enough to help him during the brutal cold snap, caused by the "polar vortex,'' that crippled air travel.

Petz's back-up flight was rescheduled twice before being canceled two hours before take off. Petz finally went to the Southwest counter where he bought a ticket and boarded a flight to Chicago's Midway Airport. It cost him another $224. But it "saved the gig (and) saved the paycheck,'' he says.

Weather-related flight delays can also wreak havoc with large off-site meetings which, if they were to be canceled because attendees couldn't make it in, could lead to losses in the hundreds of thousands of dollars, says Robert Lipman, executive vice president of Summit Management Services which focuses on meetings for the pharmaceutical research industry.

"It's bad enough to reschedule a business trip for one person, but when planning for large groups, rescheduling is not an option,'' says Lipman, who suggests that his clients plan their winter meetings in milder climates like California or Arizona.

Victoria Day, spokeswoman for the U.S. industry trade group Airlines ! for Ameri! ca said in an email that "airlines are adept at managing their businesses through a challenging environment, and these extended weather events are a clear reminder of the industry's operational and financial vulnerability to events outside its control."

Marks, of masFlight, says that it's not just bad weather that's triggered this year's flight disruptions. New federal regulations that fine airlines for lengthy tarmac delays, and require pilots to get more rest, are also boosting the number of canceled flights, he says.

Carriers will need to hire more pilots and tap into technology to make sure there is staff in position to fly, he says. And "while it's unlikely we will see or should see wholesale changes in new duty time rules,'' he says, "we can introduce more flexibility under certain conditions.''

Pullback pain meter: Past stock drops give clues

How far will stocks fall in the market's latest bout with fear and loathing? A look back at prior Wall Street downdrafts since the bull market began in March 2009 offers clues -- and some comfort to worried investors if history serves as an accurate guide.

The Standard & Poor's 500 stock index's current 5.8% drop from its January 15 all-time high of 1848.38 marks its 19th pullback of 5% or more since the bull began nearly five years ago, according to Bespoke Investment Group. Monday's 2.3% drop was the index's worst start to February since 1933.

While the drop has been quick and violent, the decline is still below the average 8.2% pullback that the S&P has suffered in its multi-year uptrend. So there's a good chance the pain meter will ramp up some more. But the bulk of the market rout could also be behind us, as well.

TUESDAY STOCKS: How markets are doing

And the pullback could last longer, recent history says. Heading into today's trading session, the downturn has lasted 19 days, less than the 25-day average for 5%-plus pullbacks since March 2009, Bespoke says.

Jeff Kleintop, chief market strategist at LPL Financial, thinks the current pullback will end before the market suffers a double-digit correction. The last official 10% correction for the S&P 500 was a 19.4% drop that ended on Oct. 3, 2011, Bespoke says.

Kleintop doesn't believe the turmoil and weakness in emerging markets will cause a sharp deterioration in global economic growth. Nor will it "spread and tip the world back into a global recession."

Kleintop also downplays the weak reading on U.S. manufacturing in January, citing weather as a main reason for the sharp drop. He notes that four of the five other January manufacturing surveys (from regions including Philadelphia, New York, Kansas City and Dallas) all rose. "We think the underlying trend is still a stronger economy in 2014 and think the data will soon begin to bear this out as the weather distortions fade."

So what do inv! estors do? Kleintop says, "buy the dip."

Top 5 Safest Companies To Own For 2015

"We are buyers on this 5% dip in the stock market," he says. "With all areas of the stock market down in our portfolios we are adding small caps and broad stock market exposure."

But patience might be a better strategy, especially if you believe a full-fledged correction of 10% is in the cards.

That can't be ruled out, says Sung Won Sohn, professor of economics at California State University Channel Islands.

"A 10 percent correction is likely as the emerging markets rattle (investors)," says Sohn.

He believes the U.S. market is being weighed down by a variety of factors, including emerging market troubles, a nearly 15% drop in Japanese stocks sparked by a rising yen, and the Federal Reserve's shift to a less accomodative monetary policy.

"In Japan, the yen has appreciated in the new year causing the Nikkei 225 to fall significantly," says Sohn. "This has a negative effect on the U.S. market where the sentiment is already fragile. In the U.S., earnings are better than expected, but the 'tapering' by the Fed is weighing on the market. There is (also) a sentiment that U.S. stocks have outpaced the fundamentals and are due for a modest correction, which would be good for the market in the long run."

There have been just two corrections of 10% or more since the bull market began.

Wal-Mart protesters arrested at Black Friday rallies

Demonstrators protesting outside a Walmart in Paramount, Calif. are arrested during a 2012 Black Friday protest. Protesters took to the streets near a number of Walmart locations again this year.

NEW YORK (CNNMoney) In a tradition that's becoming as much a part of Black Friday as the shopping, protesters gathered outside a number of Wal-Mart locations Friday calling for higher wages at the country's largest private retailer.

Ten people were arrested on misdemeanor charges Friday at a protest near a Wal-Mart in Ontario, Calif., after they moved into an intersection and failed to disperse, Ontario Police Department Sgt. David McBride said.

McBride called the incident "peaceful," and estimated that between 100 and 150 people had attended the rally. It was unclear how many of those were actual Wal-Mart (WMT, Fortune 500) workers.

Another 10 people were issued citations at a protest near a Wal-Mart in Chicago for blocking a roadway. Protests also occurred in cities including Alexandria, Va.; Quincey, Mass.; Orlando, Fla.; Bellevue, Wash; Lakeside, Colo.; and Hyattsville, Md.

Wal-Mart's U.S. CEO defends early Thanksgiving Day opening

The protesters are calling for Wal-Mart to pay full-time employees at least $25,000 per year, and to increase opportunities for full-time work.

Wal-Mart currently employs 1.2 million hourly associates who earn an average of about $12 an hour and are also eligible for up to $2,500 a year in quarterly bonuses, spokesman David Tovar said. Of that 1.2 million, "over 50%" are full-time employees working an average of 37 hours per week, Tovar said.

Workers are considered full-time at Wal-Mart if they work 34 hours or more per week. The company's part-time workers average about 27 hours a week.

Over 475,000 of the company's associates earned $25,000 or more! last year, according to a Wal-Mart presentation from September.

  Shopping frenzy on Black Friday

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Protest organizers claimed rallies took place at 1500 locations Friday. Tovar said that number was hugely inflated, and that very few demonstrators were actual Wal-Mart employees.

Holiday shopping season kicks off with fights, arrests

Friday's protests were organized by OUR Walmart, a group backed by the United Food and Commercial Workers Union. OUR Walmart and the UFCW do not represent Wal-Mart workers, and say their goal is only "helping Wal-Mart employees as individuals or groups in their dealings with Wal-Mart over labor rights and standards."

OUR Walmart held similar protests last year. Last week, the National Labor Relations Board said it was ready to bring a case against Wal-Mart for allegedly retaliating against workers who took part in those protests.

The NLRB, which protects the rights of workers who organize for better working conditions, alleged that Wal-Mart stores in more than a dozen states "unlawfully threatened, disciplined, and/or terminated employees" who participated in legal strikes and protests.

Speaking to CNN Friday, Wal-Mart U.S. CEO Bill Simon denied the NLRB accusations and defended the company's labor practices, saying its pay is above the median for the retail sector.

"Black Friday...is the big stage and Wal-Mart is a big player on the big stage. Those who want to try to change an industry like retail, it's not unexpected that they would be out on Black Friday at Wal-Mart with something to say about it," Simon said.

Is Turkey the First Domino?

The surprisingly large increase in Turkish interest rates makes MoneyShow's Jim Jubak wonder if it will have a domino effect on the other emerging markets.

For the week ahead, I think the thing you should watch is to see whether the action of Turkey's Central Bank, on January 28, sets a whole new wave of emerging market turmoil into place. Turkey's Central Bank has been under intense political pressure, for months, not to raise interest rates. The president of Turkey has come out and talked about an international cabal of countries that want Turkey to slow its economy and raise interest rates.

The last time the Central Bank visited this issue, they didn't raise rates; they did, kind of, a back-door finagling to try to get inflation under control, as well as, the real big problem in Turkey is that they have a sinking currency, because they have a huge balance of payments problem. This isn't working. The Turkish lira has been sinking like, well, a stone, or whatever, into the Bosphorus. On the 28th, they decided they were finally going to raise their benchmark rates.

In Turkey, the interest rate benchmark is the repo rate, so it's a short-term, overnight bank-to-bank rate. The Central Bank raised it from 4.5% to 10%; a huge move. It's clearly designed to make the markets go, "Ohhh" and stop sinking the lira. The lira, in fact, rallied after that.

The question is now, one of the fears that the market has had is that, of these kinds of interest rates hikes, that Brazil was going to have to do it, Turkey was going to have to do it. The whole idea is that you need to protect your currency in a country where you're running a current account deficit, so that you need to attract dollars to make your economy go; that's the problem.

When your currency is sinking like a stone and your interest rates are not very high, nobody wants to put dollars into your country, and therefore, everything goes down and there are worries about being able to sustain growth, and worries about credit, "blah, blah, blah."

Turkey moved; now the question is will Brazil move? I think the answer is probably yes. The Central Bank of Brazil was talking, the day before Turkey's action, about the need to raise rates to defend the real, to get inflation under control, etc., so I think Brazil will follow. The worry here, of course, is if the markets look at this and go okay, we're not concerned that this is going to solve the problem because what it's going to do is slow these economies, which means they'll be producing less, which means that unless you get a lot fewer imports and your exports fall, you still have the balance of payments problems. Is this really going to solve the problem, or are we going to see these currencies stop plunging, or are we, basically, just going to have the markets go, "Okay, now Brazil is going to grow at an even slower rate, we like Brazil even less, and, therefore, we're going to continue to take money out of the real." What to watch over the next week is who follows Turkey's lead and what the market reaction is, because the market basically says, "Okay, so, we'll let the currencies rally for a day or two and then resume to sell off." I think we're talking about another extension, another shoe falling in the centipede that is the emerging markets currency sell off.

This is Jim Jubak for the MoneyShow.com video network.