(EW.com) -- Lee Daniels' "The Butler" is an ambitious, sweeping period drama that manages to be incredibly affecting and feel as if the words ''For Your Consideration'' are stamped across every frame.
Inspired by the true story of an African-American steward who worked under eight presidents (Truman through Reagan), the film stars Forest Whitaker as Cecil Gaines — an unassuming man who witnesses history close-up at a time when a new chapter seems to be written daily.var currExpandable="expand13";if(typeof CNN.expandableMap==='object'){CNN.expandableMap.push(currExpandable);}var mObj={};mObj.type='video';mObj.contentId='';mObj.source='us/2013/08/16/oprah-whitaker-the-butler-ac-intv.cnn';mObj.videoSource='CNN';mObj.videoSourceUrl='http://ac360.blogs.cnn.com/';mObj.lgImage="http://i2.cdn.turner.com/cnn/dam/assets/130815215051-oprah-whitaker-the-butler-ac-intv-00000000-story-body.jpg";mObj.lgImageX=300;mObj.lgImageY=169;mObj.origImageX="214";mObj.origImageY="120";mObj.contentType='video';CNN.expElements.expand13Store=mObj;As proof of how radically the world will change during his lifetime, the story begins with Cecil as a boy working on a cotton plantation, where his employer (a fragile, haughty Vanessa Redgrave) teaches him how to serve white folks: ''The room should feel empty when you're in it.'' Years pass, and Cecil lands a job at a ritzy D.C. hotel, where his white-gloved obsequiousness grabs the attention of a White House aide, who hires him.var currExpandable="expand14";if(typeof CNN.expandableMap==='object'){CNN.expandableMap.push(currExpandable);}var mObj={};mObj.type='video';mObj.contentId='';mObj.source='showbiz/2013/08/15/lead-pkg-white-house-butler-lothian.cnn';mObj.videoSource='CNN';mObj.videoSourceUrl='http://thelead.blogs.cnn.com/';mObj.lgImage="http://i2.cdn.turner.com/cnn/dam/assets/130815175353-lead-pkg-white-house-butler-lothian-00001804-story-body.jpg";mObj.lgImageX=300;mObj.lgImageY=169;mObj.origImageX="214";mObj.origImageY="120";mObj.contentType='video';CNN.expElements.expand14Store=mObj;As the film skims Forrest Gump-style through turbulent decades and various inhabitants of the Oval Office (a fun but distracting parade of famous faces, including Robin Williams as Eisenhower, John Cusack as Nixon, and Alan Rickman and Jane Fonda as the Reagans), Cecil struggles with his messier home life. It's the only place where his gift for orderliness fails him.His wife (a beautifully nuanced Oprah Winfrey) is an alcoholic, and his older son (David Oyelowo) is a rebellious civil rights activist. Neither can draw this Invisible Man out of his shell. As Cecil, Whitaker is mesmerizing. The actor seems to shrink into his imposing frame, summoning a performance of quiet, bottled-up force.There's no question that Daniels, the director of 2009's "Precious," deserves some of the credit for that. But as undeniably moving and powerful as his film is, it could have used more of that subtlety. The fact that he even comes close makes "The Butler" worth seeing. Grade: B+See the original story at EW.com.CLICK HERE to Try 2 RISK FREE issues of Entertainment Weekly© 2011 Entertainment Weekly and Time Inc. All rights reserved./* push in config for this share instance */cnn_shareconfig.push({"id" : "cnn_sharebar2","url" : "http://www.cnn.com/2013/08/16/showbiz/movies/the-butler-review-ew/index.html","title" : "Review: \'The Butler\' is worth seeing "});Sunday, August 18, 2013
Review: 'The Butler' worth seeing
Thursday, February 9, 2012
Coinstar's Spectacular Quarter Makes It Worth Your Dollars (The Motley Fool)
Automated retail solutions provider Coinstar (Nasdaq: CSTR - News) beat Street estimates handsomely in the fourth quarter, and saw its shares spike 13% in extended trading.
Let's take a look at what's clicking for the company, and how it might fare going forward.
A look at the quarter
Coinstar acquired DVD rental services provider Redbox in 2009, and this proved to be the major driver behind the company's top-line growth. The Redbox division showed an astounding 40% growth from last year with the release of new DVD titles and deployment of its new kiosks. Coinstar's revenue increased to $520 million from $391 million a year ago.
The jump in the top line was cushioned by controlled spending, resulting in earnings of $1 per share compared to $0.65 per share projected by analysts. And, what's more, Coinstar once again expects to topple Street expectations of $515 million this quarter, with revenue guidance between $530 million and $550 million.
Expanding rapidly
Coinstar's novel idea of converting loose change into cash, conceived by founder Jens Molbak 20 years ago, is now a kiosk-based business chain ranging across various countries. The company has added new product offerings to its kiosks through a string of acquisitions and partnerships over the last few years.
Coinstar's wholly owned subsidiary Redbox has now set its eyes on acquiring NCR Corporation's DVD rental business in a deal worth around $100 million. This acquisition, which is expected to be complete by the third quarter of this year, will give Coinstar access to NCR's 10,000 DVD rental kiosks, providing fuel for its top-line growth.
Netflix killer?
But that's not the end as far as its expansionary moves are concerned. Redbox, which has already eaten into its arch-rival Netflix's (Nasdaq: NFLX - News) share, is now preparing another challenge for the online video streaming giant. This time it has found an ally in Verizon (NYSE: VZ - News), through offering online video services to customers along with its existing rental services from kiosks. Reports suggest that Verizon will have a 65% share in this venture, which is being touted as a Netflix killer and goes online in the later half of the year. It's expected that the rental rates from the Redbox-Verizon stable will be cheaper than what Netflix currently offers.
The Foolish takeaway
Coinstar has grown tremendously in the past few quarters and is making impressive moves to keep up the speed. This is one stock which you should take a look at if you are considering a new addition to your portfolio.
To stay up to speed with Coinstar's rapid growth, add it to your Watchlist.
Fool contributor Harsh Chauhan owns none of the stocks mentioned in the article. Motley Fool newsletter services have recommended buying shares of Netflix. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
Saturday, September 17, 2011
3 Stocks Near 52-Week Highs Worth Selling (The Motley Fool)
Do you ever get the feeling that bulls outnumber the bears by a wide margin? Greek one-year bonds touched a yield of 139% earlier in the week, and yet dozens of companies are nearing new 52-week highs. For optimists, these rallies may seem like a dream come true. For skeptics like me, theyre opportunities to see whether companies trading near their 52-week highs have actually earned their current valuations.
Keep in mind that some companies deserve their lofty valuations. Shareholders of ONEOK Partners (NYSE: OKS - News) have every reason to smile as their company has handily surpassed earnings expectations over the past four quarters. Now yielding north of 5%, this stock has all the potential to run higher and pay out a hefty sum of dividend income.
Still, other companies might deserve a kick in the pants. Heres a look at three companies that could be worth selling.
Customers, at any price
Im not purposely trying to pick on every triple-digit P/E company in existence, but the valuation at athenahealth (Nasdaq: ATHN - News) could be due for a check-up.
As Foolish colleague Dan Caplinger pointed out a few weeks ago, athenahealth differs greatly from medical record and billing solution rivals McKesson (NYSE: MCK - News) and Allscripts Healthcare (Nasdaq: MDRX - News) in that it focuses on obtaining greater market share rather than large contracts -- even at the expense of its own margins. While this has translated into strong revenue growth over the past few years, it could be setting up for disappointment in the future. With considerably lower margins than its peers and valued at a staggering 47 times cash flow, it wouldnt take much of a business slowdown to crush this high-flying stock.
Running on empty
Making money from low-margin fuel has always been a tough business -- just ask shareholders of Caseys General Stores (Nasdaq: CASY - News). Casey, which operates gas stations and convenience stores throughout the Midwest, reported results last week which showed double-digit revenue growth but raised more yellow flags than anything.
Its first-quarter report was soured by two key figures, as I see it. First, the company fell short of Wall Streets expectations for the second time in the past four quarters. The company blamed rising expenses and weak gasoline sales as the reason for the earnings shortfall. Perhaps even more worrisome, gross margins fell for the fifth consecutive quarter over the year-ago period. This, more than anything else, explains why Caseys earnings figures arent up to par. Until Casey can reverse its declining gross margin trend, Id recommend driving right by this stock.
Aisle pass, thank you!
Hopefully I dont go under the community guillotine for this, but what are people actually seeing in PriceSmart (Nasdaq: PSMT - News)? The company, which runs warehouse-styled stores in San Diego and around the world, maintains net margins that put competitor BJs Wholesale to shame. But, I would hardly call a 3.8% net margin a reason to celebrate.
The company appears priced for perfection at 26 times forward earnings and a whopping 29 times cash flow. While I know Id be giving up growth and even a net margin advantage, Id easily choose Wal-Mart (NYSE: WMT - News) as the safer investment between the two. Wal-Mart, at only eight times cash flow and 11 times forward earnings, represents a stark value when compared to PriceSmart. Furthermore, at 2.8%, Wal-Marts dividend yield is more than three times that of PriceSmart.
Foolish roundup
Its not often three sell recommendations stem from three companies growing by double-digits, but that was exactly the case this week. Keeping an eye on sector comparisons and margin rates can often give us clues as to whether a company is being set up for long term success or simply a flash in the pan move higher.
Fool contributor TMFUltraLong. The Motley Fool owns shares of Wal-Mart. Motley Fool newsletter services have recommended buying shares of Wal-Mart, McKesson, and ONEOK Partners, as well as creating a diagonal call position in Wal-Mart. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy that never needs to be sold short.
Monday, September 12, 2011
3 Stocks Near 52-Week Highs Worth Selling (The Motley Fool)
Not even Greek one-year bond yields eclipsing 95% are enough to drag the bull out of this market, as dozens of companies are quickly nearing new 52-week highs. For optimists, these rallies may seem like a dream come true. For skeptics like me, they're opportunities to see whether companies trading near their 52-week highs have actually earned their current valuations.
Keep in mind that some companies deserve their lofty valuations. As fellow Fool Jeremy Phillips explained, Colgate-Palmolive (NYSE: CL - News) definitely deserves to be trending higher, considering its diverse portfolio of products and given the fact that its dividend has increased in each of the past 48 years.
Still, other companies might deserve a kick in the pants. Here's a look at three companies that could be worth selling.
What's your Vector, Victor?
Vector Group (NYSE: VGR - News), the tobacco company behind brands including Eve, Pyramid, and USA isn't your normal sell candidate. The company is profitable and boasts a jaw-dropping 8.5% dividend yield. But enough signs are present that signify this could be a value trap.
First, Vector is a small-fry relative to industry peers Altria (NYSE: MO - News) and Reynolds American (NYSE: RAI - News). Doing all of its business in the United States means being subjected to increasingly more stringent U.S. smoking legislation and lawsuits. With only $384 million in cash on hand, lawsuits could prove a crippling factor to this company's balance sheet. In addition, the company's current payout ratio of 220% seems unsustainable, which more than likely portends a dividend drop is on the horizon -- despite the fact that the company has grown its dividend in recent years. Negative shareholder equity, a potential weakening dividend, and toughening anti-smoking legislation are all reasons to pass on Vector.
Who put a quarter in Regeneron?
Seriously, who put a quarter in Regeneron Pharmaceutical (Nasdaq: REGN - News)? The company has nearly tripled in the past year on bullish data for Eylea, a neovascular treatment for age-related macular degeneration. Developed in partnership with Bayer, data so far has suggested that Eylea works considerably better than Roche's Avastin at treating this ailment, but I'm still not convinced.
As a biotech investor, I'm often reminded that drugs which seem like a sure-shot to get past the FDA can sometimes be shot down. What I can tell you is Regeneron only has one marketable drug at the moment, Arcalyst, and it treats a very small percentage of the population. With losses mounting and operating expenses ballooning, a valuation of $6.5 billion on Regeneron simply doesn't make sense. Speculators might be willing to roll the dice at 88 times operating cash flow, but not me.
Fine-nancials
One thing you can almost count on with every market correction is an overreaction in the financial sector. Hit by everything shy of the kitchen sink, money center banks like Bank of America (NYSE: BAC - News) have dealt with lawsuits from AIG, BlackRock, and now the U.S. government, as well as a weakening economy and a worsening debt situation in Europe. Despite all of this, many of this nation's premier banks are trading cheaper than they have in years.
With that being said, now may be the time to part ways with ProShares Short Financials (NYSE: SEF - News). The ETF, which is an inverse tracking index of the Dow Jones U.S. Financial Index, is a poor bet. buy banks at half of book value and sell them at two times book value. Most major U.S. banks are currently trading below book value, proving there is more reward than risk built into this proverbial house of cards.
Foolish roundup
The companies featured this week had me scratching my head wondering, "Why is this rising?" Mounting losses, tightening legislation and government induced de-risking are all reasons why these three names may not be the perfect fit for your portfolio moving forward.
What's your take on these stocks: are they sells or belles? Share your wisdom in the comments section below and consider adding Vector Group, Regeneron Pharmaceuticals, and ProShares Short Financials to your watchlist.
Fool contributor TMFUltraLong.The Motley Fool owns shares of Bank of America and Altria. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy that never needs to be sold short.
Sunday, July 24, 2011
3 Stocks Near 52-Week Highs Worth Selling (The Motley Fool)
With a resolution to the U.S. debt ceiling still miles away and a long-term solution to Greece's debt troubles still not solidly on the table, it may seem odd that the S&P 500 is bucking the trend and flirting with new multi-year highs. For optimists, these rallies may seem like a dream come true. For skeptics like me, they're opportunities to see whether companies trading near their 52-week highs have actually earned their current valuations.
Keep in mind that some companies deserve their lofty valuations. Medco Health Solutions (NYSE: MHS - News) vaulted to a new 52-week high yesterday following a buyout offer from larger rival Express Scripts (Nasdaq: ESRX - News). Assuming the deal faces minimal regulatory hurdles from the FTC, it would create the largest pharmaceutical benefit management company in the U.S.
Still, some other companies might deserve a kick in the pants. Here's a look at three companies that could be worth selling.
Padlock this stock
Public Storage (NYSE: PSA - News), a name I would assume many are familiar with, provides self-storage units nationwide. It has recently reaped the benefits of displaced homeowners who have had no choice but to turn to self-storage amid very high foreclosure rates. The worry I have is whether unemployment levels remaining high while foreclosure rates remain flat (e.g., they've stopped rising) could be a recipe for an earnings peak.
Public Storage is run as a real estate investment trust, meaning it must pay out at least 90% of its earnings in the form of a dividend. Currently boasting a 12-month trailing payout ratio of 106%, this means that the company is paying out more to shareholders than it's earning -- a potentially scary and unsustainable scenario for shareholders. Growth appears to be slowing for this storage giant, so paying premium prices for a company trading at 12 times sales and nearly four times book may be unwarranted. As I see it, there are plenty of safer, less-pricey dividend choices among REITs than Public Storage.
Rotten eggs
Unless the U.S. is planning to egg a foreign country the next time we declare war, now may be the time for Cal-Maine Foods (Nasdaq: CALM - News) shareholders to rethink their positions. The company is the kingpin of the egg industry in the U.S., but based on analysts' expectations in the short term, this one's shell may be cracked.
Cal-Maine has some very tough upcoming quarterly comparisons. Scheduled to report its quarterly results in less than a week, the company is projected to have earned $0.21 versus the $0.88 it brought in last year. The August quarter projections aren't much better, with a loss of $0.24 projected versus a profit of $0.09 in the year-ago period. Rising costs are always a concern for Cal-Maine and are the main reason why revenue is only expected to be up 1% in 2011. With 36.7% of the company's float currently sold short, Cal-Maine is smelling less like a rose and more like rotten eggs by the day.
Bidding mania?
Shares of InterDigital (Nasdaq: IDCC - News) at its peak yesterday had nearly doubled from its closing price on Monday following reports that the company is putting itself up for sale. Next to the now-bankrupt Nortel, many believe that InterDigital's cellular patents are far more valuable. The concern I have isn't whether Apple (Nasdaq: AAPL - News) or Google (Nasdaq: GOOG - News) make a bid for InterDigital, as many on Wall Street anticipate, but if the value already been squeezed out of the stock. I'd say resoundingly, "Yes!"
I'm not quite sure either company would be getting a great deal buying a company that's currently valued at 15 times 12-month trailing EBITDA and more than nine times sales. Meanwhile, InterDigital's revenue and net income are expected to decline by double-digit percentages this year. Too many questions remain, if you ask me.
Foolish roundup
This week was a reminder that the bottom line is indeed still the most important factor when analyzing a stock. With revenue flat to weakening at these three companies, investors may want to keep one hand on the door knob for an easier exit.
What's your take on these companies? Are they sells or belles? Share your wisdom in the comments section below and consider adding Public Storage, Cal-Maine Foods, and InterDigital to your watchlist to keep up on the latest in each stocks respective sector.
Fool contributor TMFUltraLong. The Motley Fool owns shares of Apple, Google, Cal-Maine Foods, and Medco Health Solutions. Motley Fool newsletter services have recommended buying shares of Apple, Google, InterDigital, and Medco Health Solutions, as well as creating a bull call spread in Apple. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy that never needs to be sold short.
Friday, June 10, 2011
Mortgage debt is down, Americans' net worth up, but analysts call gains fragile (The Christian Science Monitor)
An increase in household net worth appears to be improving the financial condition of American families, but slowly.
That's the message from a report released Thursday by the Federal Reserve, which showed a rise in household net worth and a decline in the level of mortgage debt.
The Fed̢۪s report follows less than a week after the Labor Department reported that the unemployment rate rose in May to 9.1 percent, a sign that the economic recovery is still fragile and hasn̢۪t reached all American households.
Top 5 fastest-growing states
In this year's first quarter, the total of all US mortgage loans fell below $10 trillion, after being above that level for about four years, the Fed reported. Family assets rose in value, as a fall in home prices was more than offset by gains in financial assets like stocks and mutual funds. The net worth of all US households reached a total of $58 trillion, up about $1 trillion from the previous quarter. Essentially, American net worth is back to 2005 levels, but still below its 2007 peak of $64.2 trillion. A catch: As of Thursday, the stock market has lost value since the beginning of April, so economists say the next quarterly numbers probably won't be as positive. "Private finances are slowly improving as deleveraging continues and the labor market improves," Gregory Daco, an economist at IHS Global Insight, wrote in an analysis of the new numbers. But without more gains in financial assets, he said, "the depressed housing market will be a drag on household net worth in the second quarter."
Are you middle class? Take our quiz to find out.
The overall numbers mask a wide disparity in the financial health of US households, which vary widely based on families' levels of income, debt, and ownership of homes or stocks. A separate report earlier this week, from the information firm CoreLogic, estimated that 22.7 percent of US mortgages are "under water," with the borrowers owing more than their homes are worth. That's a bit lower than in last year's fourth quarter. And when the five hardest-hit states are excluded (those are Nevada, Florida, California, Arizona, and Michigan), that percentage falls to 16 percent. Across the US, many households have "deleveraged" by either paying down debts or defaulting on home loans. Another challenge for households is that when they do want to borrow, it can be hard to obtain credit. Banks are cautious about making new loans when home prices may fall further and many properties are still in the foreclosure pipeline. Still, banks are expanding their loans to businesses, and other loans to consumers (such as credit card debts) have been rising as well. Although many households have too much debt, relative to their income, the general availability of credit is an important indicator – with new loans and economic growth typically rising hand in hand.
Top 5 fastest-growing states
Friday, March 4, 2011
Is Free Money for College Worth It? (The Motley Fool)
If you have a child, you know how important it is to start saving early for your child's education. But when times are tough, it's easy to put off college saving in favor of more immediate needs -- especially if your child has a long time to go before graduating from high school.
The state governments that sponsor college savings plans, also known as 529 plans, know that many parents are in an economic bind right now. But to help parents get the savings ball rolling, some states are giving them a big incentive to get started: free money.
Where's the cash?
A handful of states have started rolling out modest programs to add to parents' college savings contributions with government money. For instance, last month, the Virginia College Savings Plan announced its SOAR Virginia scholarship pilot program, whereby about 100 students who maintain a 2.5 GPA, perform community service, and comply with their school's code of conduct will receive as much as $2,000 in 529 accounts during their high school years. Although the scholarship program is just beginning and has a limited audience at this point, success during the pilot could bring expanded opportunities in the future.
Some states have programs that anyone can use -- if they're quick enough on the uptake. In Rhode Island, parents who open a 529 plan through fund manager AllianceBernstein (NYSE: AB - News) and its CollegeBoundBaby program before the child's first birthday are eligible to receive a $100 grant. A recent SmartMoney article reported that Oregon is considering a similar provision for its 529 plans, one of which is administered by Sun Life Financial (NYSE: SLF - News) subsidiary MFS.
What's the catch?
Free money is certainly helpful for parents saving for their child's college education. But before you jump into a plan to get a small bonus, you need to look at the costs of a particular 529 plan. A small upfront bonus could turn out to be trivial if you end up paying far more in higher costs between now and when your child gets to college. This is a situation where you should definitely look the gift horse in the mouth.
For one thing, states have an incentive to get assets into their plans. States receive fees for administering 529 plans, and with government budgets stretched to their limit, it's essential that the programs earn enough revenue to cover the state's administrative costs of running them.
In addition, the financial crisis and ensuing losses in the stock market had a huge impact on public perception of 529 plans. With the average plan having lost 24% in 2008, many parents lost faith in 529s as a tool to help them reach their college savings goals. That perception only got worse as states fought with plan managers; for instance, Oregon sued the fund division of Oppenheimer Holdings (NYSE: OPY - News) in 2009 over the losses.
Moreover, the fund companies that run these programs also have financial incentives to attract assets. In Virginia, Vanguard -- the Templeton Institutional arm of Franklin Resources (NYSE: BEN - News) -- and Legg Mason's (NYSE: LM - News) Western Asset Management are among the companies managing various investment portfolios within its 529 plans. In addition, banks BB&T (NYSE: BBT - News) and Union First Market Bankshares (Nasdaq: UBSH - News) offer FDIC-insured CDs for more conservative investors. Drumming up more business is always a good move for those companies, but it won't always benefit you. Varying fee levels force you to take a closer look when choosing the right plan.
Pick the right plan
As attractive as free money sounds, it can take your eyes off what should be your top priority in choosing a 529 plan: minimizing costs. Of course, just because a plan offers you an incentive to open an account doesn't mean that it's automatically a bad one. But the best 529s don't need to offer minor rewards to get you to sign up; their features and low costs give parents reason enough in themselves.
Raising a child isn't easy, and paying the ever-rising costs of a college education is just one of many challenges parents face. But if you take the time to seek out the best 529 plans out, your effort will reap much bigger rewards than what you're likely to get from sign-up bonuses and other freebies.
Learn more about saving for college and other financial goals in our Savings Center.
Fool contributor Dan Caplinger always thinks 529 is a formula for cleaning products. He doesn't own shares of the companies mentioned in this article. The Fool owns shares of Legg Mason. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy gives you a great education.