GAO: Trusted-traveler programs are popular

Enrollment in trusted-traveler programs to win expedited processing at border crossings quadrupled during the last five years, according to a Government Accountability Office report Friday.

But Customs and Border Protection has had trouble keeping up with the applications, according to the 76-page report.

Global Entry, a program to expedite the return of air travelers from overseas, led the way by topping 1 million members by January, according to the GAO.

The other programs are Nexus with 950,393 members for crossing the northern border, Sentri with 369,745 members for crossing the southern border and Fast with 78,414 members among commercial truckers at northern and southern borders.

With nearly 1 million people entering land, sea and air borders each day, the advantage to the expedited programs is getting through customs and immigration lines faster.

Global Entry costs $100 for five years. Applicants provide biographical information and travel history for a criminal-background check, then fingerprints and an interview.

If successful, participants can swipe their passport at an airport kiosk, which digitally takes their customs declaration, and then skip the line processing hundreds of other people from the flight.

"Trusted travelers generally experience shorter wait times than regular travelers," the GAO said.

Customs and Border Protection calculated it saved $15.5 million in personnel costs at border inspection booths last year, according to Jim Crumpacker, director of Department of Homeland Security's office dealing with the GAO.

Of the 31 airports with kiosks, the biggest share of travelers using Global Entry are Houston's Bush and Raleigh-Durham at 5% and Chicago's O'Hare, Dallas/Fort Worth, Denver, Newark, Salt Lake City and Washington's Dulles at 4%.

Customs and Border Protection is also allowing citizens of Germany, Qatar, Panama and the United Kingdom to participate in Global Entry, and has agreements to include Israel and Saudi Arabi! a.

Trusted traveler programs have become popular. Applications grew to 895,830 last year from 233,833 in 2009, according to GAO.

Enrollments grew to 857,529 last year from 209,117 in 2009, GAO said.

The use of Global Entry kiosks nearly doubled to 1.9 million entries last year from 1.1 million in 2012. But there is room for growth, with 77 million entries from aboard at airports last year.

By August 2013, Customs and Border Protection had a backlog of 90,000 applications awaiting vetting and 33,000 applicants awaiting interviews. At that point, the agency reduced the maximum length of interviews to 15 minutes from 20.

The agency also eliminated interviews for renewals that didn't have any derogatory material against the applicant. One enrollment center holds group briefings for new members about how the programs work.

15 Oil and Gas Stocks to Sell Now

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The overall ratings of 15 oil and gas stocks are down on Portfolio Grader this week. Each of these rates a “D” (“sell”) or “F” overall (“strong sell”).

Crescent Point Energy Corp.’s () rating falls this week to an F (“strong sell”), down from last week’s D (“sell”). In Portfolio Grader’s specific subcategories of Earnings Revisions, Earnings Surprise, Cash Flow and Margin Growth, CPG also gets F’s. Shares of the stock have been changing hands at an unusually rapid pace, twice the rate of the week prior. The stock’s trailing PE Ratio is 109.50. .

Golar LNG Partners’ () rating falls to a D (“sell”) this week, down from C (“hold”) the week prior. Golar LNG Partners owns floating storage and regasification units and liquefied natural gas carriers. Shares of the stock have been trading at an exceptionally rapid pace, up fourfold from the week prior. .

Slipping from a D to an F rating, Cosan Limited Class A () takes a hit this week. Cosan is a fully integrated company in the renewable energy and infrastructure segments in Brazil. The stock gets F’s in Cash Flow and Margin Growth. Shares of the stock have been changing hands at an unusually rapid pace, up 589.9% from the week prior. The stock currently has a trailing PE Ratio of 38.60. .

Goodrich Petroleum Corporation () experiences a ratings drop this week, going from last week’s C to a D. Goodrich Petroleum explores, develops, produces and acquires oil and natural gas properties. The stock receives F’s in Earnings Growth, Earnings Revisions, Equity and Cash Flow. As of May 30, 2014, 33.1% of outstanding Goodrich Petroleum Corporation shares were held short. Shares of the stock are being traded at a very rapid pace, up 658.2% from the week prior. .

The rating of EXCO Resources, Inc. () declines this week from a D to an F. EXCO Resources is an oil and natural gas company involved in the exploration, exploitation, development and production of onshore North American oil and natural gas properties. The stock gets F’s in Earnings Surprise, Equity and Cash Flow. As of May 30, 2014, 12% of outstanding EXCO Resources, Inc. shares were held short. .

Calumet Specialty Products Partners, L.P. () earns an F this week, moving down from last week’s grade of D. Calumet Specialty Products produces hydrocarbon products in North America. The stock receives F’s in Earnings Growth, Earnings Momentum and Earnings Revisions. Cash Flow and Margin Growth also get F’s. .

Plains All American Pipeline, L.P. () earns a D this week, falling from last week’s grade of C. Plains All American Pipeline is involved in interstate and intrastate crude oil pipeline transportation and crude oil terminalling storage activities. Shares of the stock have been trading at an exceptionally rapid pace, up threefold from the week prior. .

TransCanada Corporation’s () rating weakens this week, dropping to an F versus last week’s D. TransCanada develops and operates energy infrastructures, including natural gas pipelines. Shares of the stock have been changing hands at an unusually rapid pace, three times the rate of the week prior. The trailing PE Ratio for the stock is 29.80. .

This is a rough week for Enbridge (). The company’s rating falls to F from the previous week’s D. Enbridge is in the business of transportation and distribution of crude oil and natural gas primarily in Canada and the United States. The stock gets F’s in Earnings Growth, Earnings Momentum and Cash Flow. Trade volume is up 615% from the previous week. The stock has a trailing PE Ratio of 69.70. .

This week, StealthGas () drops from a C to a D rating. StealthGas offers marine transport services for liquefied petroleum gas producers and users. In Earnings Growth, Earnings Revisions, Earnings Surprise and Cash Flow the stock gets F’s. .

Ultrapar Participacoes S.A. Sponsored ADR () gets weaker ratings this week as last week’s D drops to an F. Ultrapar Participacoes is engaged in the fuel distribution and chemical businesses in Brazil. Shares of the stock have been trading at an exceptionally rapid pace, up twofold from the week prior. .

This week, Gevo’s () rating worsens to an F from the company’s D rating a week ago. Gevo operates as a technology development company for biobutanol. The stock gets F’s in Equity, Cash Flow and Sales Growth. As of May 30, 2014, 11.7% of outstanding Gevo shares were held short. Trade volume is up 1155.7% from the previous week. .

Slipping from a C to a D rating, PDC Energy () takes a hit this week. PDC Energy is an oil and gas company with drilling and production operations in the Rocky Mountains, the Appalachian Basin and Michigan. The stock gets F’s in Earnings Revisions and Cash Flow. As of May 30, 2014, 11.5% of outstanding PDC Energy shares were held short. .

This week, Chevron Corporation’s () rating worsens to an F from the company’s D rating a week ago. Chevron is an integrated energy company with operations in countries located around the world. Shares of the stock have been changing hands at an unusually rapid pace, four times the rate of the week prior. .

This is a rough week for Kinder Morgan, Inc. Class P (). The company’s rating falls to F from the previous week’s D. Kinder Morgan is a pipeline transportation and energy storage company. The stock currently has a trailing PE Ratio of 29.30. .

Louis Navellier’s proprietary Portfolio Grader stock ranking system assesses roughly 5,000 companies every week based on a number of fundamental and quantitative measures. Stocks are given a letter grade based on their results — with A being “strong buy,” and F being “strong sell.” Explore the tool here.

U.S. Confronts China's Hacking: Will Your Investments Be Collateral Damage?

The United States is calling China to account for its hacking efforts at companies like U.S. Steel (NYSE: X  ) . This is more than just a public relations stunt, especially for a country like China that takes its public image very seriously. What kind of consequences could this U.S. move have?

Who cares about a loser?
Why hack a steel mill that's lost investors over $25 a share over the last five years? Seriously, five consecutive years of red ink suggests that U.S. Steel isn't a big threat to China. But taking a look at why U.S. Steel is bleeding helps explain the allure.

The steel industry is in the midst of a supply glut. That's left prices weak, and companies like U.S. Steel complaining that foreign competition has been selling steel products into the U.S. market at prices below the cost of production. Such dumping is often prevalent from countries where the government has a big hand in industry. Like China.

(Source: EPA)

U.S. Steel has been involved in a number of trade cases in the steel industry to try to stop dumping. One of note was a 2009 case against China over tubular steel used in the oil and gas drilling industry. U.S. steel makers won that case, getting levies of nearly 90% imposed on Chinese imports.

U.S. steel makers have since brought a similar case against other countries. Although not tied to China, there are close links. For example, there's the concern that Chinese steel is going to other countries before being sold in the United States. Or, just as bad, Chinese exports are forcing other countries to dump their steel into the U.S. market.

The pot and kettle are both black
While the goal of China's alleged hacking is currently unknowable, getting a handle on U.S. Steel's trade case plans is certainly a solid reason for what U.S. Attorney General Eric Holder has called, "economic espionage." And U.S. Steel's computers were hardly alone in this, since the accusation involved a total of five U.S. companies.

China, however, has already called the bluff, basically saying that the U.S. is doing the same thing. In fact, the very public black eye involving U.S. spying on the leaders of supposed allies makes clear that the United States is about as pure as yellow snow when it comes to this type of stuff. And then there was the Stuxnet computer worm that helped delay Iran's nuclear ambitions—it was supposedly a U.S./Israel collaboration.

(Source: Dagmar, via Wikimedia Commons)

These examples aren't an effort to suggest we shouldn't be doing such things, just that China has a valid point. And this case raises tensions with the giant nation at a time when tensions are already running high. For example, China is openly feuding with U.S. ally Japan over control of a series of islands that just happen to have natural gas reserves around them.

A pound of flesh
Even if the U.S. government is right in bringing this suit, you have to wonder who loses. It's hard to believe that the five accused hackers will ever see the inside of a U.S. courtroom, so this is definitely about making a statement. But China can do that, too.

For example, the country just announced that it is banning the use of Microsoft's (NASDAQ: MSFT  ) Windows 8 on government computers. In an ironic twist the country is claiming that security concerns are to blame. However, if China actually jettisons Microsoft-based computers the software maker could miss out on an important upgrade cycle in the country.

Industry watcher Canalys explained to Bloomberg that, "China's decision to ban Windows 8 from public procurement hampers Microsoft's push of the OS to replace XP, which makes up 50 percent of China's desktop market." Piracy concerns aside, Microsoft looks like it just got dragged into a fight that it didn't start.

Change is hard
Chinese relations with the United States are destined to be difficult. This indictment is just one example of what will be ongoing tension between an up and coming global player and the current heavyweight. However, companies from U.S. Steel to Microsoft could easily get caught in the middle. Watch this public spat and pay close attention to the exposure, direct and indirect, you have to China in your portfolio.

You don't want to miss this
The Economist compares this disruptive invention to the steam engine and the printing press. Business Insider says it's "the next trillion dollar industry." And everyone from BMW, to Nike, to the U.S. Air Force is already using it every day. Watch The Motley Fool's shocking video presentation today to discover the garage gadget that's putting an end to the Made In China era... and learn the investing strategy we've used to double our money on these 3 stocks. Click here to watch now!

We're almost break even on the bailout

Taxpayers are still owed $30 billion on all the federal bailouts approved during crisis, but they could turn a profit soon.

NEW YORK (CNNMoney) Five years later, taxpayers still haven't broken even on the $698.2 billion in government bailouts issued during the financial crisis.

But we're getting close. The bailouts, which include money disbursed through TARP as well as other funds used to shore up Fannie Mae, Freddie Mac and AIG, may even show a profit by the time the sixth anniversary arrives.

So far, Treasury and the Federal Reserve have recouped $670 billion of those funds. That's far more than could have been imagined in the dark days of 2008.

Most of the money has been returned to U.S. coffers via the sale of stock in the companies that were rescued. The firms also repaid the government by selling off assets and making loan and dividend payments.

Here's a rundown of where the payouts stand:

Banks: $22.3 billion profit

The Trouble Asset Relief Program, which was the most publicized and controversial part of the bailouts, was created to help the faltering U.S. bank system. Treasury used it to pump $250 billion into banks both large and small in order to shore up their capital, and to keep them lending money to consumers and businesses. In return, Treasury got stock and warrants in the banks, which it later sold at a profit.

Treasury has already sold the shares it owned in major banks, such as Citigroup (C, Fortune 500) and Bank of America (BAC, Fortune 500). But it's still slowly selling off the stakes it has in many small banks, which should make the banking portion of the bailout slightly more profitable.

AIG: $22.7 billion profit

The insurer was rescued by the Federal Reserve, which pledged $85 billion in help in the days following Lehman Brothers' 2008 bankruptcy. AIG ultimately received about $152 billion from both the Fed and TARP. The government turned a profit by selling its shares of AIG (AIG, Fortune 500), as well as by pocketing the proceeds from the sale of the company's non-core units.

Both TARP and the Fed ended up making a profit on the AIG rescue.

Auto industry: $26.9 billion loss

General Motors (GM, Fortune 500), Chrysler Group and Ally Financial, the finance firm then known as GMAC, together received $79.7 billion in help in 2008 and 2009. While some of that assistance came in the form of loans, most of it was was given to the companies in return for their stock.

Stock sales, dividend and loan payments together have returned only $52.7 billion to the government, leaving a $27 billion deficit.

Ally, two-thirds of which is still owned by Treasury, is expected to repay another $6 billion this year. Treasury also owns roughly 100 million shares of GM, which are worth about $3.6 billion at today's market prices.

Those stakes should help narrow the government's loss on the auto bailout. But it's doubtful that taxpayers will be made whole on the $80 billion the industry received.

Fannie Mae & Freddie Mac: $41 billion loss

The two mortgage finance firms were bailed out a week before the Lehman bankruptcy, and eventually received $187 billion in funds between them. But they've already repaid $146 billion of that, and Freddie has signaled that it may make another payment of as much as $25 billion later this year.

In addition, both companies are now profitable once again thanks to the recovery in the housing market. Since all of Fannie's and Freddie's profits flow directly to Treasury, that should mean billions of dollars in additional payments.

Other bailouts: $5 billion loss

This category includes a number of short-term programs that helped restart financial markets that froze up in the crisis. They gave money to asset managers to help them buy toxic mortgage securities from banks, hedge funds and other investors. Treasury made a $4 billion profit on those programs.

But it also spent $9 billion to assist struggling home owners, and that's one area where losses might continue to climb.

10 Best “Strong Buy” Stocks — EQM DAL BITA and more

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This week, these ten stocks, all currently earning A’s (“strong buy”) on Portfolio Grader, have the best year-to-date performance.

Since January 1, EQT Midstream Partners LP () has climbed 41.4%. EQT Midstream Partners provides natural gas transmission, storage, and gathering services in Pennsylvania and West Virginia. Trade volume rose notably over the past week, up 203%. .

The price of Delta Air Lines, Inc. () is up 42% since the first of the year. Delta Air Lines operates as an airline for passengers and cargo traveling throughout the United States and around the world. The stock has a trailing PE Ratio of 3.20. .

Bitauto Holdings Ltd. Sponsored ADR () has risen 43.1% since the first of the year. Bitauto provides Internet content and marketing services for the automotive industry, primarily in the People'’s Republic of China. .

Since the first of the year, shares of Green Plains Inc. () have soared 49.5%. Green Plains Renewable Energy constructs and operates dry mill, fuel-grade ethanol production facilities. .

Since January 1, Repligen Corporation () has jumped 50.4%. Repligen is a biopharmaceutical company that develops therapeutics for radiology and neuropsychiatry. The volume of trades has grown significantly in the past week, up 159.3%. .

The price of Illumina, Inc. () has seen a 51.8% boost since the first of the year. Illumina develops, manufactures and markets integrated systems for the large-scale analysis of genetic variation and biological function. .

Since January 1, the price of Shanda Games Ltd. Sponsored ADR Class A () has grown 52.3%. Shanda Games develops, sources and operates Internet games in China. The stock currently has a trailing PE Ratio of 7.60. .

Shares of Texas Pacific Land () have leaped 58% since January 1. Texas Pacific Land Trust derives revenue from all avenues of managing land, such as royalties from oil and gas and land sales. Trade volume has increased significantly over the past week, up 244.4%. .

Since January 1, Forest Laboratories, Inc. () has shot up 66.8%. Forest Laboratories develops, manufactures, and sells both branded and generic forms of ethical products which require a physician’s prescription. .

Since the first of the year, the price of Questcor Pharmaceuticals, Inc. () has swelled 71.1%. Questcor Pharmaceuticals develops and commercializes novel central nervous system-focused therapeutics that address significant unmet medical needs. .

Louis Navellier’s proprietary Portfolio Grader stock ranking system assesses roughly 5,000 companies every week based on a number of fundamental and quantitative measures. Stocks are given a letter grade based on their results — with A being “strong buy,” and F being “strong sell.” Explore the tool here.

Why Lowe’s and Home Depot May Kill Housing Fears Despite Rising Interest Rates

Before markets opened on Wednesday, Lowe's Companies Inc. (NYSE: LOW), the country's second largest home improvement store chain, reported second-quarter diluted earnings per share of $0.88, up from $0.64 in the second quarter a year ago, and sharply higher than the consensus estimate from Thomson Reuters of $0.79. Sales rose from $14.2 billion a year ago to $15.7 billion, again higher than the consensus estimate of $15.06 billion. Same-store sales rose 9.6% in the quarter.

If anything, Lowe's quarter was even better than rival Home Depot Inc. (NYSE: HD), which yesterday posted EPS of $1.24 on $22.5 billion in revenue, also beating estimates. Both chains reported an increase in the average ticket and more transactions, and both noted growth in virtually all departments.

And while the home improvement stocks are posting gains, home builders' stocks have been falling. Since late May, shares of D.R. Horton Inc. (NYSE: DHI) and KB Home (NYSE: KBH) are down around 30%. Toll Brothers Inc. (NYSE: TOL), which matched EPS estimates and beat on revenues this morning, is off about 14% since May.

Mortgage rates are up and that has hampered refinancing, but rates remain historically low. In late May, a conforming 30-year mortgage carried an interest rate of 3.78%, almost a full point lower than the 4.68% rate reported for last week. A 30-year jumbo loan in May carried an interest rate of 3.93% compared with 4.74% last week.

The home improvement stores are getting a boost from rising home prices. As home values increase, it makes sense for homeowners to update and remodel their homes, whether to sell or to add value for potential sale in the future. Add in the number of existing homes being sold, which new owners often choose to "fix up," and the rise in Home Depot's and Lowe's stocks is no surprise.

Toll Brothers’ CEO noted that the company’s sales contract numbers are about where they were in 1998. Over the next seven years, mortgage rates averaged between 5.8% and 8.1%, and sales contracts eventually peaked at double the 1998 pace. The difference between then and now, of course, is that in 2005 virtually everyone believed housing prices would never fall. We know better today.

For the new home builders to share in the prosperity, they need to remind buyers that mortgage rates are still very low and that home values continue to rise: "A new home purchased today for $250,000 might be worth 10% more next year. Where else can you get that kind of return on investment? Besides, it's a new house and you won't need to do anything to fix it up." That is a narrative that could overturn resistance to rising interest rates.

A rising tide of home values lifts all boats. The home improvement stores have figured out how to take advantage of that. The home builders likely will too.

Shares of Lowe's are up about 4.6% in premarket trading Wednesday morning, at $46.01 in a 52-week range of $25.97 to $46.25. Shares of Toll Brothers are down fractionally, at $31.63 in a 52-week range of $28.50 to $39.25.

Microsoft + Nokia vs. Google + Motorola = Win for Ballmer

Microsoft Corp. (NASDAQ: MSFT) has decided to buy the Nokia Inc. (NYSE: NOK) handset business for $7.17 billion, which is not much for a company with its balance sheet. In 2011, Google Inc. (NASDAQ: GOOG) bought Motorola Mobility for $12.5 billion, another small investment, based on the search company’s balance sheet. Which company got the better deal? Microsoft.

Nokia may be crippled, but it is still, by many measures, the larger of the two handset companies. Motorola’s near-death experience, triggered when its popular RAZR’s sales disappeared, has been a shell of late, and that is all it is today.

Google Android has dominated the smartphone market for years, and the OS is on the handsets of most of the industry’s leaders. In buying Motorola, it got only one Android-based hardware company. And it ran the risk of alienating its other Android hardware partners.

Microsoft has tried to get its Windows mobile OS onto handsets for years. Its success has been very limited. In Nokia, it finds a ready customer base. It could be argued that its 2011 $1 billion deal with Nokia worked in that direction. However, owning a company and having a strategic deal with it are two different things. Like Motorola is a slave to Google, Nokia will become one to Microsoft. There were rumors Microsoft would launch its own Windows 8 based phone this year. Instead, it will buy its own large launch platform.

The deals are very different from another standpoint. Microsoft has been on a push into hardware for years. Its signature product has been the Xbox, which leads its industry ahead of the Sony Corp. (NYSE: SNE) PS products and a bevy of products from Nintendo. It has been less successful (much less) as it has tried to enter the tablet market with the Surface. Microsoft CEO Steve Ballmer, on his way to retirement, obviously has convinced his board to stick with his vision — part of the future of Microsoft is in hardware. Redmond once again admitted as much in its announcement: “Microsoft aims to accelerate the growth of its share and profit in mobile devices through faster innovation, increased synergies, and unified branding and marketing.”

One part of the announcement that was given a great deal of attention is that Steve Elop, a former Microsoft employee and current Nokia CEO, will remain with the company. That might be a signal he eventually will lead Microsoft. However, most of Nokia will remain intact. Smartphone development will even stay in Finland, according to Ballmer. Not too much should be read into the Elop decision. He is part of an entire team Microsoft has decided to retain.

Nokia has 15% of the global handset business, an awful fall from 39% five years ago. But Motorola has been worse off than that for years. Microsoft may be buying a weak company. Google bought an industry ghost.

Microsoft needs Nokia. The same cannot be said about Google’s deal to buy Motorola. Each got money losing operations. However, no matter how crippled Nokia is, it is Microsoft’s best, and perhaps last, hope to go mobile

Bank of Japan chief signals impatience with Abe

Bloomberg Haruhiko Kuroda

TOKYO -- Japan's central-bank chief predicted victory in his battle to root out the deflation that has long sapped economic vitality in the world's third-largest economy, but expressed impatience with the government's pace in cutting red tape and encouraging businesses to invest more.

"Implementation is key, and implementation should be swift," Bank of Japan Gov. Haruhiko Kuroda said in an interview with The Wall Street Journal. "The major work to be done is by the government and the private sector."

Kuroda's comments mark an important shift in tone more than a year after he was tapped by Japanese Prime Minister Shinzo Abe to engineer a newly aggressive monetary policy. The resulting "bazooka" of stimulus actions, including the purchase of trillions of yen in government bonds and other assets, has fueled Japan's longest economic growth streak in nearly four years and a steady stream of positive inflation readings.

Despite signs of progress, Kuroda warned in the interview that the longer-term triumph could be relatively hollow if Abe doesn't step up his campaign for deeper, structural changes that go far beyond monetary policy. Unless the Abe administration follows through soon, "the real growth rate may be disappointing," Kuroda said. "That is not good for the economy, not good for the society."

In response to the prod for more action, Abe said in a separate interview with the Journal that he already has moved aggressively to shake up entrenched sectors of Japan. Additional proposals will be unveiled in late June.

"We have implemented complete liberalization of the retail electricity market" and scrapped a 40-year-old subsidy to cut rice planting, Abe said. "Many of these were areas where reform was believed not possible, but we've made them happen."

Abe added: "Structural reforms are a never-ending theme for the Abe administration."

Kuroda also signaled concern that a sustained rise in the value of the yen could undermine gains already made. While previous Bank of Japan governors have traditionally avoided openly discussing exchange rates, Kuroda in the interview said investors shouldn't expect the yen to rise further, even as it flirts with its highest levels in months. "I don't think it's reasonable to expect the yen to appreciate against the dollar," Kuroda said.

Kuroda's comments were a strong sign that he plans to tackle broader issues that traditionally haven't been part of the Bank of Japan's turf, even if that means taking a more aggressive tone than Abe. The prime minister put Kuroda, a financial-policy veteran and longtime critic of the central bank, in charge of the Bank of Japan in March 2013.

Read the full article at WSJ.com.

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Top Portfolio Products: New China Small-Cap ETF

New products and changes introduced over the last week include a new China small-cap ETF from Deutsche Asset & Wealth Management, and Manning & Napier launched a new microsite for advisors.

Here are the latest developments of interest to advisors:

1) DeAWM Launches China Small-Cap ETF

Deutsche Asset & Wealth Management (DeAWM) has announced the launch of the db X-trackers Harvest CSI 500 China A-Shares Small Cap Fund (ASHS), which provides investors with direct access to small-cap China A-shares equities. DeAWM has partnered with subadvisor Harvest Global Investments Limited to launch this product, which has an expense ratio of 0.82%.

ASHS will seek to track the CSI 500 Index, which holds 500 small-cap companies listed on the Shanghai and Shenzhen stock exchanges. To be considered for inclusion in the index, securities must meet minimum liquidity requirements.

2) Manning & Napier Launch Microsite on Fiduciary Risk for Advisors

Manning & Napier has announced the launch of its new microsite on fiduciary risk for advisors, which addresses the concern among plan fiduciaries concerning plan failure risk (PFR)—an increasing concern because of previous siloing of health and wealth benefits. The site can assist advisors to help plan sponsors develop a coordinated strategy that incorporates both retirement and health care objectives, in order to drive positive outcomes and avoid plan failure risk.

The microsite’s interactive prioritizer tool will help plan sponsors begin to set a short- and a long-term objective. In using the prioritizer, plan sponsors receive a report that will help them to define an effective, actionable benefits strategy for their business. A short video on the microsite explains the key components of avoiding PFR in simple terms: careful evaluation of benefits program offerings, knowing what an organization is able to spend on benefits, and clearly defining near and long-term objectives. The infographic also includes a comprehensive timeline of the evolution of employee benefits, and how health care and retirement have converged.

Read the May 16 Portfolio Products Roundup at ThinkAdvisor.

 

Entrepreneurs in 4 cities have chance at $100K…

CINCINNATI — AOL founder and venture capitalist Steve Case is on the road — again — this time promising winners of his tech start-up tour in four cities that his company will invest $100,000 each in their small businesses.

But that's not all: The entrepreneurs also will receive an all-expense paid trip to Washington to pitch their ideas to his company, Revolution venture capital, meet other investors and get the chance to raise even more money.

The four-cities-in-four-days tour — Detroit on June 24, Pittsburgh on June 25, Cincinnati on June 26 and Nashville on June 27 — is part of Case's Rise of the Rest initiative, in which he seeks out promising start-ups beyond California's Silicon Valley. He started the program in October 2012.

"Sixty years ago, for example, Detroit was essentially what Silicon Valley is today," Case said in a January interview with Silicon Valley Business Journal. "It was the most vibrant entrepreneurial region in the country, arguably in the world. The technology of the day was the automobile and it was on fire, growing like crazy."

Detroit is bankrupt now because it lost what he calls its "entrepreneurial mojo."

2014: Steve Case says Web to hit '3rd phase'
2013: Steve Case on best management advice he's ever received

"But the good news on Detroit, and I think it is true in some of these other regions, is it is fighting its way back," Case said then. "We actually believe in 2014 for the first time ever (that) venture investments east of the Mississippi will be greater than venture investments in Silicon Valley."

Case considers start-ups one way to jump-start the economy, and his Revolution venture capital firm already has made major commitments to more than 30 companies including Flexcar, which merged with Zipcar; Gaiam, known for its yoga and fitness equipment; CustomInk online T-shirt design; LivingSocial daily deals website; and SweetGreen organic made-to-order, fast-food salads.

We will work hard to make sure Steve (C! ase) leaves Ohio knowing that he has no choice but to come back again.

Rob McDonald, Cincinnati

Case will be part of a panel in each city that evaluates eight to 10 start-ups during a 90-minute pitch competition.

Before the pitch session, Case will be talking about entrepreneurship and the local start-up community; afterward is a reception. In his brief time in the cities, he also plans to meet with business leaders and spend time at some high-growth companies.

"Being selected as one of the four stops on the tour is evidence of the great progress we have made over the last five years," said Rob McDonald, a lawyer in Cincinnati and co-founder of The Brandery marketing and branding accelerator here. "We will work hard to make sure Steve leaves Ohio knowing that he has no choice but to come back again."

Another of Case's titles is chairman of the Startup America Partnership, a privately financed network of 32 communities across the USA dedicated to nurturing local companies in their infancy.

That venture, in conjunction with the White House's Startup America initiative, is different from a business incubator or accelerator, in part because it has no buildings, but local entrepreneurs, investors, mentors and other executives are working together to help young companies grow and often incubators and accelerators are part of that team. The Startup America Partnership does not make financial investments in start-ups.

But Case is making deals: He already announced earlier this year at the first-ever Google for Entrepreneurs Demo Day that he is investing $1 million, $100,000 each for 10 start-ups in seven cities.

His 17-year-old Case Foundation invests in companies and organizations that create both a financial return and societal change, what the foundation calls "doing well by doing good."

Steve Case gives his take on "the rise of the rest," crowdfunding, & new immigration policies for entrepreneurs. Interview was filmed at Tech Cocktail's SXSW Startup Celebration sponsored by CEA & .CO. Video series sponsored by Yappem & #KeepAmerica

Case's April investments

• Chicago. MarkITx is an online exchange for buying and selling businesses' used and refurbished information technology hardware. WeDeliver offers trackable, same-day delivery of goods, at the moment in six Chicago neighborhoods.

• Denver.GoSpotCheck allows teams to use smartphones and tablets to collect and analyze data from retail stores.

• Detroit.iRule converts a mobile device into a universal remote control to manage audio-visual systems, dim the lights, close the drapes and even turn on the gas fireplace.

• Durham, N.C. Automated Insights' system analyzes a company's data, writing reports in plain English. Windsor Circle helps online retailers with automated customer loyalty programs by using a retailer's own data about the customer.

• Minneapolis.Docalytics analyzes how potential customers interact with a company's downloadable sales and marketing content. Kidizen is an online marketplace to buy and sell kids' used clothes, toys and other items that children outgrow.

• Nashville.InvisionHeart's password-protected software allows doctors to view electrocardiograms and other time-sensitive cardiac data on smartphones and tablets.

• Waterloo, Ontario. MOJIO connects your car built after 1995 to the Internet; its smartphone apps give you information about the vehicle in real time, keep you connected in your car and potentially keep your teenager disconnected.

Hot Industrial Conglomerate Companies To Invest In Right Now

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

What: Shares of power chip specialist Fairchild Semiconductor (NYSE: FCS  ) sank 10% today after its quarterly results and outlook missed Wall Street expectations.

So what: The stock has rebounded nicely over the past few months, but today's second-quarter miss -- EPS of $0.43-$0.45 versus previous guidance of $0.49-$0.54 -- coupled with downbeat guidance for the current quarter reignites worries over the headwinds facing management. Specifically, weak PC demand continues to weigh on sales amid the booming growth of tablets, forcing analysts to recalibrate their valuation estimates.

Now what: Management now sees third-quarter revenue of $355 million-$370 million, well below Wall Street's view of $388.2 million. "Mobile sales are expected to increase in the third quarter due largely to one major customer and continued growth from our Chinese customers," said Chairman and CEO Mark Thompson. "Our guidance reflects some conservatism given how difficult it has been for our customers to forecast actual mobile demand." With the stock now off about 20% from its 52-week highs and trading at a forward P/E of about 12, much of that uncertainty might already be baked into the valuation.

Hot Industrial Conglomerate Companies To Invest In Right Now: Siemens AG (SI)

Siemens AG (Siemens), incorporated on August 28, 1996, is a globally operating technology company with core activities in the fields of energy, healthcare, industry and infrastructure. Siemens business activities focus on four sectors, Energy, Healthcare, Industry and Infrastructure & Cities. These sectors form four of Siemens reportable segments. In addition to the four sectors, Siemens has two additional reportable segments: Equity Investments and Siemens Financial Services (SFS). The Energy sector comprises four divisions: Power Generation, Wind Power, Power Transmission and Energy Service. The Healthcare Sector includes four divisions: Imaging & Therapy Systems, Clinical Products, Diagnostics and Customer Solutions; and one sector-led Business Unit, Audiology Solutions. The Industry sector consists of three divisions: Industry Automation, Drive Technologies and Customer Services; and one sector-led Business Unit, Metals Technologies. The Infrastructure & Cities sector consists of five divisions: Rail Systems, Mobility and Logistics, Low and Medium Voltage, Smart Grid, and Building Technologies. In July 2013 Siemens sold its stake in the Nokia Siemens Networks (NSN) joint venture to Nokia and OSRAM Licht AG was spun off from Siemens.

Industry

The Industry Sector offers a broad spectrum of products, solutions and services that help customers use resources and energy. The Sector�� integrated technologies and holistic solutions primarily address industrial customers, particularly those in the process and manufacturing industries. The portfolio spans industry automation, industrial software, drive products and services, system integration, and solutions for industrial plant businesses. The Industry Sector consists of three Divisions: Industry Automation, Drive Technologies and Customer Services. The Sector also includes a sector-led Business Unit, Metals Technologies. In addition to its Sector-level financial results, Industry also breaks out financial results for the Indust! ry Automation Division and the Drive Technologies Division. The Industry Automation Division offers a range of standard products and system solutions for automation technologies used in the manufacturing and process industries. The Division�� offerings include automation systems and software, motor controls, machine-to- machine communication products, sensors, product and production lifecycle management products, and software for simulating and testing mechatronic systems. The Drive Technologies Division offers products and comprehensive systems across the entire drive train. These offerings are customized to the respective application and include numerical control systems, inverters, converters, motors (geared and gearless), drives and couplings. In addition, Drive Technologies supplies integrated automation systems for machine tools and production machines. The Division also offers integrated lifecycle solutions and services for industries such as shipbuilding, cement, mining, and pulp and paper. The Customer Services Division offers a comprehensive portfolio of services and supports industrial customers.

Energy

The Energy Sector offers a spectrum of products, solutions and services for generating and transmitting power, and for extracting, converting and transporting oil and gas. The Fossil Power Generation Division offers products and solutions for fossil-based power generation. The Division concentrates on products and solutions for gas and steam turbines, turbo generators, heat recovery steam generators including control systems, with an emphasis on combined-cycle power plants. It also develops solutions for instrumentation and control systems for all types of power plants and for use in power generation. The Wind Power Division manufactures wind turbines for onshore and offshore applications, including both geared turbines and direct drive machines. The product portfolio is based on four product platforms, two for each of the onshore and offshore applications. The Oil ! & Gas Div! ision has a comprehensive portfolio of rotating machinery (gas turbines, steam turbines, compressors with associated equipment) and electrical, instrumentation and telecommunication (EIT) solutions. The Power Transmission Division provides customers with turnkey power transmission solutions as well as discrete products, systems and related engineering and services. It covers high-voltage transmission solutions, power and distribution transformers, high-voltage switching and non-switching products and systems, and alternating and direct current transmission systems. The Energy Service Division offers comprehensive services for products, solutions and technologies, covering performance enhancements, maintenance services, customer trainings and consulting services for the Divisions Fossil Power Generation, Wind Power and Oil & Gas. The Wind Power Division is active in both the onshore and the offshore market segments globally. Power Transmission Division is expanding infrastructure in emerging countries, equipment replacement and modernization in mature economies, and integration of renewable energies.

Healthcare

The Healthcare Sector offers customers a comprehensive portfolio of medical solutions across the treatment chain-ranging from medical imaging to in-vitro diagnostics to interventional systems and clinical information technology systems-all from a single source. In addition, the Sector provides technical maintenance, professional and consulting services, and, together with Financial Services (SFS), financing to assist customers in purchasing the Sector�� products. The Healthcare Sector includes four Divisions: Imaging & Therapy Systems, Clinical Products, Diagnostics and Customer Solutions. The Sector also includes one sector-led Business Unit, Audiology Solutions. In addition to its Sector-level financial results, Healthcare also separately breaks out financial results for the Diagnostics Division.

The Imaging & Therapy Systems Division provides large-scale! medical ! devices for diagnostic imaging and for image-guided therapies. Imaging equipment includes computed tomographs, magnetic resonance imaging equipment, angiography systems for diagnostics, and positron emission tomography. The Clinical Products Division mainly comprises the business with ultrasound and X-ray equipment including mammography. The Diagnostics Division offers products and services in the area of in-vitro diagnostics. The Division�� product portfolio represents a comprehensive range of diagnostic testing systems and consumables, including offerings for clinical chemistry and immunodiagnostics, molecular diagnostics, hematology, hemostasis, microbiology, point-of-care testing and clinical laboratory automation solutions. The Customer Solutions Division provides healthcare information technology (HIT) systems. It is responsible for the Sector�� service business and customer relationship management on a global level.

Equity Investments

The Equity Investments comprises equity stakes held by Siemens that are accounted for by the equity method, at cost or as current available-for-sale financial assets and for strategic reasons are not allocated to a Sector, SFS, Centrally managed portfolio activities, Siemens Real Estate (SRE), Corporate items or Corporate Treasury. Its main investments within Equity Investments are its stake of 50% in BSH Bosch and Siemens Hausgerate GmbH (BSH), its stake of 17% in OSRAM Licht AG (OSRAM) as well as its 49% stake in Enterprise Networks Holdings B.V. (EN).

Financial Services

Financial Services provides a variety of financial services and products to other Siemens units and their customers and to third parties. SFS has three strategic pillars: supporting Siemens units with finance solutions for their customers, managing financial risks of Siemens and offering third-party finance services and products. SFS��business can be divided into capital business and fee business. The Commercial Finance Business Unit offers! a compre! hensive range of solutions for equipment financing, leasing, rental and related financing for equipment supplied by Siemens or third-party providers. The Venture Capital Business Segment�� main task, together with Siemens��Sectors, is to identify and finance young companies worldwide. The Treasury Business Unit operates the global Corporate Treasury of the Siemens Group, with SFS employee�� thereby managing liquidity, cash and financial risks (interest, foreign exchange, commodities) on behalf of Corporate Treasury. The Financing & Investment Management Business Unit manages fee-based receivables and offers investment management services. The Insurance Business Unit acts primarily as an insurance broker for Siemens and external customers.

Infrastructure & Cities

The Infrastructure & Cities Sector offers a range of technologies for the sustainability of metropolitan centers and urban infrastructures worldwide, such as integrated mobility solutions, building and security systems, power distribution equipment, smart grid applications and low and medium-voltage products. The Sector consists of five Divisions: Rail Systems; Mobility and Logistics; Low and Medium Voltage; Smart Grid; and Building Technologies. The Rail Systems Division comprises Siemens��rail vehicle business, encompassing the entire spectrum of rolling stock-including high-speed trains, commuter trains, passenger coaches, metros, people movers, light rail vehicles, locomotives, bogies, traction systems and rail-related services. The Mobility and Logistics Division primarily provides products, solutions (including IT solutions) and services for rail transportation operating systems, such as central control systems, interlockings and automated controls. The Division also provides offerings for road traffic, including traffic detection, information and guidance systems.

Advisors' Opinion:

• [By Ben Levisohn]

  Siemens (SI) has fallen 1.2% after it fired 15,000 workers in an attempt to catch General Electric (GE).

  Johnson Controls�(JCI) has dropped 3% to $41.26 after it was downgraded to Underweight from Overweight.

• [By Dan Carroll]

  Other industrial stocks are also hitting the red: Siemens (NYSE: SI  ) , Europe's largest engineering firm, has seen its stock dip more than 4% this year. That wasn't helped after CEO Peter Loescher offered a pessimistic sentiment �of his company's full-year profit a week ago, particularly as Siemens' margins trail other leading industrial conglomerates. With many leading economies still struggling for growth, it'll be tough for Siemens to outperform investor expectations -- particularly as Europe's crisis shows no signs of abating.

• [By Dan Carroll]

  This all adds up to a risky bet for the German economy, which hangs on to growth by a thread. Leading German manufacturers are also in danger while exports are at risk. Siemens' (NYSE: SI  ) stock plunged more than 5% this week, as the global conglomerate's own Chinese business risks falling on the nation's downturn. Just a few years ago, Siemens' Chinese prospects were soaring, helped by the country's mass urbanization and need for manufactured goods and electronics. Now, however, the company's CEO says he sees "no momentum" from China, and the company has cut its sales outlook for this year. That's a bad omen for Germany from a diversified company often seen as a bellwether of the nation's economy.

• [By WALLSTCHEATSHEET]

  Siemens provides a range of valuable technology products and services to a number of industries around the world. A recent sell of the remaining investment in the Nokia Siemens Network is scheduled, as well as the sacking of its current CEO. The stock has not done very well in the past few months and is now trading in the middle of a price range that has remained intact for most of the year. Over the last four quarters, earnings and revenue figures have been mixed, which has produced mixed feelings among investors. Relative to its peers and sector, Siemens has been a poor year-to-date performer. WAIT AND SEE what Siemens does this coming quarter.

Hot Industrial Conglomerate Companies To Invest In Right Now: Toshiba Corp (TOSBF)

TOSHIBA CORPORATION is a Japan-based manufacturer that operates in five business segments. The Digital Product segment manufactures and sells cellular phones, hard disc devices, optical disc devices, televisions among others. The Electronic Device segment provides general logic integrated circuits (ICs), optical semiconductors, power devices, large-scale integrated (LSI) circuits, among others. The Social Infrastructure segment manufactures and sells various generators, power distribution systems, water and sewer systems, transportation systems and station automation systems, among others. The Home Appliance segment provides refrigerators, drying machines, washing machines, cooking utensils, cleaners and lighting equipment, among others. The Others segment is involved in the provision of logistics services. In January 2014, Toshiba Corp purchased substantially all assets of OCZ Technology Group, and launched new subsidiary, OCZ Storage Solutions. Advisors' Opinion:

• [By Bruce Kennedy]

  On Monday, U.S. Attorney General Eric Holder announced indictments against five officers in China's People's Liberation Army (PLA) for ��erious cybersecurity breaches��against six American firms: Westinghouse Electric, a division of Toshiba (OTC: TOSBF) , Alcoa (NYSE: AA),�Allegheny Technologies (NYSE: ATI), U.S. Steel (NYSE: X), the United Steelworkers Union and SolarWorld (OTC: SRWRY).

10 Best Paper Stocks To Watch For 2015: Orkla ASA (ORK)

Orkla ASA is a Norway-based company active in various sectors. The Company�� operations are structured into two segments: Branded Consumer Goods and Other Businesses. The Branded Consumer Goods segment is divided into five units: Orkla Foods, which comprises the Company�� food businesses in the Nordic region and the Baltics; Orkla Confectionery, which comprises five branded consumer goods businesses which serve the Nordic region and the Baltics as their home markets; Orkls Home & Personal consists of five branded consumer goods businesses, including Lilleborg, Lilleborg Profesjonell, the Axellus Group, Pierre Robert Group and House Care; Orkla Food Ingredients cover product categories, including margarine, marzipan, bread improvers and mixes, and yeast, and Orkla International includes branded consumer goods companies outside the Nordic region and the Baltics. The Other Businesses segment covers the Company�� operation in aluminum, real estate and hydropower sectors, among others. Advisors' Opinion:

• [By Jonathan Morgan]

  Orkla ASA (ORK), the Norwegian industrial conglomerate transforming itself into a consumer-goods producer, slumped 11 percent to 46.78 kroner, the largest drop since November 2011. The company reported second-quarter pretax profit of 514 million kroner ($86 million), missing estimates of 965 million kroner in a Bloomberg survey of analysts.

Hot Industrial Conglomerate Companies To Invest In Right Now: Smiths Group PLC (SMGKF.PK)

Smiths Group plc is a technology company. It has five divisions: Smiths Detection, Smiths Medical, John Crane, Smiths Interconnect and Flex-Tek. The Company and its subsidiaries develop, manufacture, sale and support advanced security equipment, including trace detection, millimeter-wave, infrared, biological detection and diagnostics; mechanical seals, seal support systems, engineered bearings, power transmission couplings and specialist filtration systems, and medical devices aligned to specific therapies, principally airway, pain and temperature management, and vascular access. It also develops, manufactures, sells and supports specialized electronic and radio frequency products for the global wireless telecommunications, aerospace, defense, space, medical, rail, test and industrial markets, and engineered components, including ducting, hose assemblies and heating elements. In May 2011, it acquired the entire issued share capital of SDBR Comercio De Equipamentos De Seguanca LTDA. Advisors' Opinion:

• [By Daniel Lauchheimer]

  Currently, three main companies supply security equipment to the TSA - Safran (SAFRY.PK), Smiths (SMGKF.PK), and Level-3 Holdings (LLL). All three of these companies sell the whole range of their products to the TSA, with an ETD offering included. Recently, however, a new company, Implant Sciences Corporation (IMSC.PK) received approval from the TSA to begin selling their ETD equipment to airport security professionals. This approval has opened the door for IMSC to begin taking some market share away from the more established players in the US and beyond.

Hot Industrial Conglomerate Companies To Invest In Right Now: ThyssenKrupp AG (TKA)

ThyssenKrupp AG is a Germany-based technology holding company operating in seven business areas. The Steel Europe division produces carbon steel flat products. The Steel Americas division is engaged in production, processing and marketing of high-grade carbon steels. The Materials Services division is engaged in global distribution of materials and the provision of complex technical services for the production and manufacturing sectors. The Elevator Technology division is engaged in the area of passenger transportation systems. The Plant Technology division focuses on specialty and large-scale plant construction. The Components Technology division is engaged in manufacturing components for the automotive, construction and engineering sectors as well as for wind turbines. The Marine Systems division focuses on naval and civil shipbuilding. Apart from its business areas, it provides business services, which are diversified into Business Services and Information Technology (IT) Services. Advisors' Opinion:

• [By Sofia Horta e Costa]

  ThyssenKrupp AG (TKA), Germany�� largest steelmaker, rose to a five-week high. YOC AG (YOC) surged the most in more than three months after the mobile-phone advertising company said it sold 1.3 million euros ($1.7 million) of shares to increase capital. Lanxess AG (LXS), the chemical maker that joined the DAX in September, retreated 3.4 percent.

• [By Corinne Gretler]

  ThyssenKrupp AG (TKA) slumped 9.3 percent after Germany�� largest steelmaker raised 882.3 million euros ($1.21 billion) through a share sale. Standard Chartered Plc lost 8.1 percent. Sage Group (SGE) Plc, the U.K.�� biggest software maker, rose 6.8 percent after reporting revenue growth that exceeded analysts��estimates. AZ Electronic Materials SA surged 43 percent after Merck KGaA (MRK) agreed to buy it for about 1.6 billion pounds ($2.6 billion).

Buying Health Insurance in the Off Season

I'm leaving my job in a few months and moving to New York. Can I get new health insurance even though open enrollment is over?

SEE ALSO: Signing Up for Health Insurance Outside of Open Enrollment

Yes. Even though open enrollment for individual health insurance is closed until November 15, you can buy a new policy now (either on a state exchange or directly from an insurer or agent) if you move or experience certain other "life changes," including getting married or divorced, having or adopting a baby, and losing other health insurance. You generally have 60 days from the date of the event to buy a new policy. See Apply with a Special Enrollment Period for more information.

The rules for buying a new policy when you move vary by state. For example, you can buy a policy from the New York State of Health (New York's health insurance exchange) outside of open enrollment if you permanently move to New York State or if you permanently move from one county to another within the state. You have 60 days from the date of your move to select a health plan. See the New York State of Health's FAQs on Special Enrollment Periods for details.

Losing health insurance when you leave your job also makes you eligible for a special enrollment period in any state -- even if you could extend your current policy through COBRA -- as long as you haven't signed up for COBRA yet. (COBRA is the federal law that requires insurers with 20 or more employees to let you keep your employer coverage for up to 18 months after you leave your job. It's often a better deal to look for coverage on your own rather than getting COBRA because you must pay the full cost of COBRA coverage yourself.) Keep in mind that if you change plans in the middle of the year, your deductible and out-of-pocket limit will reset, and medical costs you paid for under your old plan won't count toward the new plan's limits.

Because you're leaving your job, you'll need to estimate what your income will be for the rest of the year and add that to the income you've already earned in 2014, to see whether you're eligible for a subsidy (you qualify if your income is less than 400% of the federal poverty level -- $46,680 if you're single or $62,920 for a couple). Notify the exchange if your income ends up being lower than your estimate (so you can get a bigger subsidy) or if it's higher than you anticipated (so you don't have to pay some of it back when you file your tax return in the spring). See Beware Pitfalls of Health Care Subsidy for more information about subsidy surprises.

Got a question? Ask Kim at askkim@kiplinger.com.

Deere & Company (DE) Q2 Earnings Preview: Bulldozing EPS - Again

Deere & Company (NYSE:DE) is scheduled to report second quarter, fiscal year (FY) 2014 sales and earnings before the opening of financial markets on Wednesday, May 14, 2014. The company will webcast a call with financial analysts and investors that day at 9:00 AM CT.

Wall Street anticipates that the agriculture machinery maker will earn $2.48 per share for the quarter, which is $0.28 less than last year's profit of $2.76 per share. iStock expects DE to run by Wall Street's consensus number, the iEstimate is $2.61.

Revenue, like earnings, is expected to slip, decreasing 6% year-over-year (YoY). Deere's consensus revenue estimate for Q2 is $9.65 billion, more than a half-bill less than last year's $10.26 billion.

[Related -Deere & Company (DE) Q3 Earnings Preview: Nothing Runs Backwards Like A Deere]

Deere & Company operates in three segments: agriculture and turf, construction and forestry and financial services.

The John Deere agriculture and turf segment manufactures and distributes a line of agricultural and turf equipment and related service parts. John Deere construction segment makes earthmoving, material handling and forestry equipment i.e. backhoes. The financial services segment primarily finances sales and leases by John Deere dealers of new and used agriculture and turf equipment and construction and forestry equipment.

According to Wall Street Cheat Sheet, DE's "whisper number" is $2.49, a penny more than expected.  He site reports that DE has topped the "whisper" 28 quarters, missed 13 quarters and never hit the number on the nose.

[Related -Deere & Company (DE): Short-Term Risks, Long-Term Opportunities]

Exceeding Wall Street's outlook is nothing new for the machinery maker. DE's EPS topped the consensus 12 of the last 13 quarterly checkups and usually by wide margins. On average, Deere earned 22.15% more than projected profits per share with a range of 3.03% to 100% above the street's view. Meanwhile, the lone miss was a shortfall of -7.69%.

Although Deere's EPS track record is just one shy of perfect in the last 13 quarters, earnings-driven price-sensitivity has been mixed. Investors greeted shares with gains eight of the last 13 announcements, gaining anywhere from 0.16% to 9.39% in the days surrounding the profit news. On five occasions, which includes the lone miss, the stock dropped an average of -4.22%.

For the most part, Deere's financial statements appear to be in order; although, there is room for improvement. According the first quarter's 10-Q, total sales increased 3.13% with other income (crop insurance premiums) and finance and interest income delivering the fastest growth rates, 36.36% and 6.09%, respectively. Meanwhile, total expenses were in-line, moving higher by 3.30%. The difference may not sound like much, but it works out to more than $1 million, which is a rounding error on the income statement.

The most concerning issue we see is inventory rising at almost 5.5 times the rate of equipment sales. Inventory increased 12.56% versus revenue growth of 2.29%. If demand doesn't meet the extra-supply, then discounts may be necessary to move machines. It may not be a concern this quarter, but will become one if the trend persists.

Overall: Deere & Company's (NYSE:DE) recent history, whisper number, and iEstimate strongly suggests another bullish surprise. At the same time, investors might be wise to pay attention to DE's inventory. If the line-item continues to grow faster than revenue, it could be a warning that demand is slowing and downward revisions/guidance coming. 

Job outlook for 2014 college grads puzzling

Dear Class of 2014: We regret to inform you that the nation's job market continues to force college graduates to take jobs they're overqualified for, jobs outside their major, and generally delay their career to the detriment of at least a decade's worth of unearned wages. Good luck on your continued job search.

A job rejection letter to this year's graduates, who are now supposed to be starting their first truly independent adult years, might as well go something like that.

The latest jobs report for April gave grads a puzzling picture. Employers added the most jobs in more than two years, 288,000. Unemployment dropped from 6.7% to 6.3%, the first time it was that low since September 2008. Young adults still face higher unemployment, but the rate for 25-29 year-olds fell from 7.5% in March to 6.9%. The unemployment rate for those 20-24 dropped from 12.2% to 10.6%.

Still, the portion of Americans 25-34 who were working in April fell to a five-month low of 75.5%, down from 75.9% in March.

"The entire drop (in unemployment) was due to people dropping out of the labor force, in particular young people," says Heidi Shierholz, a labor market economist who writes an annual report on the state of employment for young adults for Economic Policy Institute.

And despite the number of jobs added last month, Shierholz calls the gradual improvement "agonizingly slow."

Seniors who graduate over the next several weeks are poised to be yet another product of a depressing economic cycle that isn't their fault, but that they may never fully recover from. They and other recent graduating classes entered college and subsequently the labor market amidst a panoply of converging circumstances that will inevitably set them back: rising tuition, their parents' decreasing ability to pay that tuition, fewer jobs after graduation, and lower wages for the jobs that are available.

In Shierholz's paper on this year's graduates, released early this month, she and her colleagues write that "the ! Class of 2014 will be the sixth consecutive graduating class to enter the labor market during a period of profound weakness."

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High unemployment for young adults during and after recessions is not a new phenomenon. Bureau of Labor Statistics data compiled by EPI show that the unemployment rate for those under 25 is typically at least twice the national average, because they are so new to the job market, lack experience, and may be the first let go when a company has to downsize in hard economic times. Still, previous generations didn't experience the fallout as harshly or for nearly as long as the current one, Shierholz says.

"It's never been this bad," she says. "How long we've had elevated unemployment is unprecedented."

That hasn't dampened students' spirits at least. A majority, or 84%, of this year's graduating class expects to find a job in their chosen field, according to an employment survey released this month by consulting firm Accenture.

That seems to align with attitudes on campuses. Lisa Severy, director of career services at University of Colorado Boulder, says this year's class is less anxious than past year's graduates about their job prospects, and has been more eager to attend career events.

"They seem more excited, hopeful, and enthusiastic," she says.

Their optimism may only be slightly warranted. A survey on recruitment trends by the Collegiate Employment Research Institute at Michigan State University finds hiring for bachelor's degrees this year is up 7%. That's relatively in line with increases in previous years though. The research institute calls the 3% overall growth in the college labor market "modest."

And many employers continue to seek students whose skills tend to be in high demand no matter what: business, engineering, and accounting majors.

Madison Piercy, a senior double majoring in electrical engineering and computer science at Boulder, had her fair share of suitors this year. The 21 year-oldwas pursued by In! tel, Micr! osoft, and Noble Energy before accepting a positionat MIT Lincoln Laboratory, a federally funded research center at Massachusetts Institute of Technology.

Madison Piercy just graduated from University of Colorado, Boulder and has a job with MIT Lincoln Laboratory starting in June. She was pursued by Microsoft, Intel, and Noble Energy.(Photo: Solay Howell for USA TODAY)

But most grads aren't in Piercy's position.

In the two years since Rebecca Mersiowsky graduated from Radford University in Radford, Va., she's worked at a beach club on Martha's Vineyard, as a substitute teacher in Fredericksburg, Va., and as a sales associate at a boutique in Boston, where she lives now.

The 24 year-old, who graduated with a degree in communications, has had no luck finding a job in public relations.

In the meantime, she convinced her employer at the boutique in Beacon Hill to let her take on the shop's blog and social media. She works up to 35 hours a week as a sales associate and blogger, but the shop can't afford to hire her full-time.

"I don't think frustrated even begins to describe it," Mersiowsky says of her plight. "It's really scary when I think about my graduating class and how now, two more of those classes have come out and have entered the workforce and that puts me behind them. I feel like I am being set back with every passing day."

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As so many students approach graduation without a job, moving back home has become a given, as opposed to a last resort. Taylor Maycan, a former USA TODAY intern, graduated early from Northwestern University in March and moved home to Houston to live with her parents while she looks for a job. Until then, she babysits and does other odd jobs to make money.

"It's s! tressful.! No one wants to graduate and not have a job lined up," she says. "You want to be able to say, I graduated and here's what I'm doing next. It's kind of tough to say, I graduated from this great school and I have no idea what I'm doing now."

Hers is a reality many college students have come to accept as the logical next step after graduation. Evan Feinberg, president of youth advocacy organization Generation Opportunity, says it's "probably the most difficult compromise my generation has been forced to make. It's really hard to get started on your own."

Maycan still has a hopeful attitude about finding employment and has accepted she may have to adjust her expectations about her first job.

Still, the consequences of a late career start could be life-long. Studies show that entering the labor market during a recession can affect your earnings for the next 10-15 years, depending on the industry you work in and how long you are unemployed or underemployed. And Shierholz says even that time estimate may be optimistic, given most studies on so-called "wage scarring" are on graduates who entered the labor market during the early 1980s recession, which was "long and severe" but "nothing like the one we're in," she says.

Severy sees evidence that the market may be improving, at least in some areas. The career center at Boulder has received so many job postings from employers this year, sometimes between 100 and 150 a day, that Severy hired one of this year's graduates to manage the postings full time.

As a whole though, graduates continue to struggle.

"Unfortunately for young Americans," Feinberg says, "the recession never ended."

8 real-world style tips for grads

College students are notorious for blurring the lines between pajamas and clothing, favoring floors over closets for clothing storage, and for borrowing outfits from friends and boyfriends — whether they fit or not.

Then, one day, they put on a graduation gown and enter the job market where wardrobe norms can be a bit less lenient.

"All of a sudden, they need to be wearing clothes that are tailored properly and that are pressed and professional," says Peggy Noe Stevens, author of "Professional Presence: A Four-Part Program for Building your Personal Brand" and president of Peggy Noe Stevens & Associates, a Louisville, Ky., image consulting firm.

"Most of them have no idea where to begin. Many of them don't own a single item that could be worn into an interview."

And buying that one great interview suit — a rite of passage 10 years ago — just doesn't cut it anymore. "The professional wardrobe has changed," says Stevens. "It's all over the board. Some companies are more casual; others are still suit and tie. ... You want to dress appropriately, but you want to do more than that. You want to dress like you belong."

If that task seems daunting, it doesn't have to be. "Dressing for an interview takes some thought and some homework," says Wendy Jacobs, vice president and regional employment manager for BB&T. Jacobs interviews nearly 100 job candidates a year and also talks to business students about interviewing etiquette at local colleges. "I tell students to just pick up the phone," says Jacobs. "Call human resources and ask about the dress code. It's never wrong to do that."

In other words, your clothes can set you apart. You want them to do that in a positive way.

Hannah Fulkerson(Photo: By Michael Clevenger/The C-J)

To mak! e sure that happens, here's a quick list of interview dressing do's and don'ts:

1. BUILD YOUR GROWN-UP WARDROBE. Start assembling the makings of an adult closet now. "I tell students to start thinking about a professional wardrobe before or as soon as they graduate," says Stevens. "You need that suit, yes, but you should also think in terms of good basics. Good pants. A few good tailored shirts. Nice shoes."

2. LEARN HOW TO IRON. "I can't tell you how many people mention young people coming in looking rumpled," says Jacobs. "I always say, 'Neat, clean and pressed. It doesn't have to be expensive. But you have to look polished and presentable.' "

3. TAKE A GOOD LOOK IN THE MIRROR — OR GET A PROFESSIONAL OPINION. Extremely long hair, tattoos, nail art, wild hair colors and even facial hair for guys may be commonplace on campuses, but they're not as welcome in every workplace. "I tell grads to book a consultation and talk to a stylist," says Stevens. "You want to look polished and relevant." Whether or not you cut or color your hair, it's wise to go into an interview with a fairly conservative beauty look.

4. PUT YOUR BEST FOOT FORWARD — AND NOT IN SANDALS. The experts agree that crazy, colorful, sexy shoes don't scream 'serious job candidate.' Whether it's a pair of wildly colored men's athletic shoes or chunky platform sandals, bold footwear is a step in the wrong direction. "Men should be wearing loafers or oxfords; women should stick with classic pumps or conservative peep toes," says Chris Fulkerson, president of VIP studios, a local image consulting agency.

5. PAY ATTENTION TO FIT. Buying grown-up clothes is a good start, but don't stop there: Make sure they fit properly. Take it to a tailor. Try it on for your parents. "You want to make sure the fit is precise," says Fulkerson, whose two college-age daughters recently found jobs. After all, anyone who takes the time to get the fit just right would probably take the time to attend to a whole host of other details tha! t an empl! oyer is looking to delegate.

6. MOM MAY BE WRONG: YOU PROBABLY CAN SKIP THE PANTYHOSE. Up until two or three years ago, pantyhose was a conservative workplace standard — even in the sweltering summer. Good news for recent grads: "Hose are not required anymore," says Jacobs. "It's worth a call to HR, but our bank is very conservative and we've changed our dress code."

7. AS LONG AS YOU DON'T LOOK SEXY. Bare legs may be OK, but not if you're showing too much of them. "One of the biggest mistakes women can make is dressing too sexy," says Jacobs. Hemlines should hit right above the knee and cleavage is a no-no. The same goes for clingy or sheer fabrics and "too much bling."

8. DON'T DRESS LIKE A CLONE. You want your clothes to be neat. Clean. Pressed. Well-fitting. But that doesn't mean they have to be boring. So forget those images of navy blue suits, pumps and suntan hose — or gray suits and rep ties — and find work clothes that you also actually like to wear. "If you feel good in your clothes, you project confidence," says Jacobs. And that, regardless of where you're interviewing, always works.

THE LOOK THAT GOT THE JOB

Sydney Fulkerson, a University of Kentucky senior in merchandising and business, was recently offered an internship with a small Los Angeles fashion label. Her look:

-- A sophisticated (not sexy) leather skirt and top signal an interest in fashion.

-- This sleek jacket looks polished and pulled together.

-- An envelope clutch adds a finishing touch and organizes papers.

ANOTHER LOOK THAT LANDED THE JOB

Hannah Fulkerson, who recently completed her master's degree in art therapy at the University of Louisville, just took a job as an art therapist working with children in Boston.

-- Soft blue (jacket) is approachable.

-- Black pants look professional, but not fussy.

-- Shoulder bag and classic pumps are practical and pulled together.

3 Stocks Spiking on Unusual 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.

>>5 Hated Earnings Stocks You Should Love

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 Stocks Insiders Love Right Now

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

HMS Holdings

HMS Holdings (HMSY) provides cost containment services to government and private healthcare payers and sponsors. This stock closed up 5.4% at $17.52 in Wednesday's trading session.

Wednesday's Volume: 2.01 million

Three-Month Average Volume: 975,571

Volume % Change: 118%

From a technical perspective, HMSY spiked sharply higher here right above some near-term support at $16 with above-average volume. This spike higher on Wednesday pushed shares of HMSY into breakout territory, since this stock took out some near-term overhead resistance at $17. Market players should now look for a continuation move higher in the short-term if HMSY manages to take out Wednesday's high of $17.67 to its 50-day moving average of $18.06 with strong upside volume.

Traders should now look for long-biased trades in HMSY as long as it's trending above support at $16 and then once it sustains a move or close above $17.67 to $18.06 with volume that hits near or above 975,571 shares. If that move starts soon, then HMSY will set up to re-test or possibly take out its next major overhead resistance levels at $19 to $21, or even its 200-day moving average of $21.51.

Imperva

Imperva (IMPV) develops, markets, sells, services and supports data center security solutions that protect high value applications and data assets in physical and virtual data centers. This stock closed up 7% to $20.75 in Wednesday's trading session.

Wednesday's Volume: 1.11 million

Three-Month Average Volume: 673,802

Volume % Change: 103%

From a technical perspective, IMPV trended sharply higher here right above its 52-week low of $18.40 with above-average volume. This stock recently gapped down sharply from around $50 to under $30 with heavy downside volume. Following that move, shares of IMPV have continued to trend lower with the stock tagging its recent 52-week low of $18.40. That move has now pushed shares of IMPV into extremely oversold territory, since its current relative strength index reading is 24. Oversold can always get more oversold, but it's also an area where a stock can experience a powerful bounce higher from. That bounce is now underway, so market players should look for a continuation move to the upside if IMPV can manage to take out Wednesday's intraday high of $21.18 with strong volume.

Traders should now look for long-biased trades in IMPV as long as it's trending above Wednesday's low of $19.51 or above its 52-week low of $18.40 and then once it sustains a move or close above Wednesday's high of $21.18 with volume that hits near or above 673,802 shares. If that move kicks off soon, then IMPV could rebound higher back towards its next major overhead resistance levels at $23 to $25. Any high-volume move above those levels will then give IMPV a chance to tag $27.

World Wrestling Entertainment

World Wrestling Entertainment (WWE), an integrated media and entertainment company, is engaged in the sports entertainment business worldwide. This stock closed up 5.1% at $19.35 in Wednesday's trading session.

Wednesday's Volume: 4.19 million

Three-Month Average Volume: 1.64 million

Volume % Change: 196%

From a technical perspective, WWE spiked sharply higher here right above its 200-day moving average of $16.94 with above-average volume. This stock has been downtrending badly for the last two months and change, with shares moving lower from its high of $31.98 to its recent low of $17.14. That low corresponded with WWE's 200-day moving average, which for now has held. Market players should now look for a continuation move to the upside in the short-term if WWE manages to take out Wednesday's intraday high of $19.90 to some more near-term overhead resistance at $20.86 with high volume.

Traders should now look for long-biased trades in WWE as long as it's trending above Wednesday's low of $17.69 or above its 200-day at $16.94 and then once it sustains a move or close above $19.90 to $20.86 with volume that this near or above 1.64 million shares. If that move materializes soon, then WWE will set up to re-test or possibly take out its next major overhead resistance levels at $22 to $23.19, or its 50-day moving average of $24.49.

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:

>>Hedge Funds Hate These 5 Stocks -- Should You?

>>5 Rocket Stocks to Beat a Sideways Market

>>5 Big Charts Ready to Break Out in May

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.

Like Clockwork, Arotech Perks Up Again - Time to Act (ARTX)

If you're reading this, then odds are you already know Arotech Corporation (NASDAQ:ARTX) shares are up big-time today. You probably also know why ARTX is soaring... last quarter's results. What may not be fully appreciated about this defense contractor, however, is that its stock - even with today's huge advance - has a lot more upside to go before the bulls slow down.

For better or worse, ARTX has developed a reliable trading pattern since around this time last year. This pattern is framed by a rising support line, and an even-faster-rising resistance line, meaning the swings are getting wider as time marches on for Arotech Corporation. The swings are net-bullish, however, so a savvy trader can use the volatility to their advantage.

And now may well be the time to use it.

While Arotech shares are up a whopping 37% since hitting last week's lows, the upper edge of the trading range that has historically capped the rally is still miles away. In fact, it's so far away and rising so fast that assigning a value to it would be pointless. It would be well above $10.00, however, if we had to decide where this rally would hit a wall again. The chart of ARTX below tells the tale... higher highs, higher lows, and we just pushed off of the rising floor.

It's also worth noting how ARTX has responded bullishly to encounters with key long-term moving average lines. The 100-day moving average line (gray) sparked the turnaround in July of last year, November of last year, and in February of this year, and while that 100-day moving average line didn't stop the pullback in April, a near-brush with the equally-important 200-day moving average line (green) does seem to have had a bullish-bounce effect on Arotech Corporation shares.

With all of that being said, it should be noted that Arotech is a standout among its peers of size and ilk, and is deserving of a higher valuation.

While the trailing P/E of 33.0 is a little frothy, it's also not an indication of the company's normal operation. The forward-looking P/E ratio of 14.1 is more indicative of what ARTX is and does, and the market could easily justify a higher premium than that given the strong double-digit growth rates we've seen on recent years, and the huge 33% bump in revenue analysts are projecting for this year.

Bottom line? Arotech Corporation looks like a buy here.

For more trading ideas and insights like these, be sure to sign up for the free SmallCap Network newsletter. You'll get stock picks, market calls, and more, every day. Here's what you've missed recently.

5 Worst Sectors to Avoid This Week

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This week, the reit, metals and mining, water utilities, independent power and renewable electricity producers and energy services sectors rank lowest on the Portfolio Grader database.

The reit sector is lagging this week with 81% of its stocks (127 out of 157) rated a “sell”. With an overall grade of F, Hatteras Financial (), DDR Corp. () and Health Care REIT, Inc. () are weighing down the sector. The worst performer in this sector is Hatteras Financial, which saw its price sink 27.1% in the last 12 months.

With 67% of its stocks (61 out of 91) rated “sell,” the metals and mining sector is struggling this week. Among metals and mining stocks, Newmont Mining Corporation (), Gold Fields Limited Sponsored ADR () and Schnitzer Steel Industries, Inc. Class A () are lingering near the bottom with grades of F. Gold Fields Limited Sponsored ADR is the worst stock in its sector, with the company’s share price falling 73.5% in the last 12 months.

The water utilities sector is dragging, with 67% of its stocks (4 out of 6) rated a “sell”. Out of the water utilities stocks, Companhia de Saneamento Basico do Estado de Sao Paulo SABESP Sponsored ADR (), SJW Corp. () and Aqua America, Inc. () are near the bottom with D’s. Companhia de Saneamento Basico do Estado de Sao Paulo SABESP Sponsored ADR is performing worst overall in the sector, with an 81.3% decline over the last 12 months.

The independent power and renewable electricity producers sector looks weak, with 67% of its stocks (6 out of 9) rated a “sell”. TransAlta Corporation (), Empresa Nacional de Electricidad S.A. Sponsored ADR () and Calpine Corporation () are dragging down the sector overall, each earning a low grade of F. The worst performer in this sector is TransAlta Corporation, which saw its price sink 39.3% in the last 12 months.

The energy services sector is trailing behind others this week, with 60% of its stocks (38 out of 63) rated a “sell”. McDermott International, Inc. (), ION Geophysical Corporation () and Tidewater () are all currently earning F’s. McDermott International, Inc. is the worst performer in this sector, with a 28.5% decline in the last 12 months.

Louis Navellier’s proprietary Portfolio Grader stock ranking system assesses roughly 5,000 companies every week based on a number of fundamental and quantitative measures. Stocks are given a letter grade based on their results — with A being “strong buy,” and F being “strong sell.” Explore the tool here.

Inventors smarten up toys for a new generation

Move over, Elmo.

There's a new toy in town. MaKey MaKey isn't fluffy or cute. It doesn't talk or dance when you press its belly. It inspires curiosity, experimentation, invention and pride.

This $49.95 part-digital, part-mechanical construction kit represents the business potential of the Science, Technology, Engineering and Math — or STEM — movement compelling politicians and professors to rethink education and venture capitalists and entrepreneurs to create and fund new products around it.

Kit founders Jay Silver and Eric Rosenbaum of Cocoa Beach, Fla.-based JoyLabz believe MaKey MaKey and an equally-inventive new generation of toys are on the cusp of transforming the toy industry.

Less than three-year-old littleBits of New York City recently raised $11.1 million to grow its business selling exploration kits — tiny circuit-boards that can be snapped together to create larger circuits that light up, make noise or perform other small feats. GoldieBlox and Roominate both sell building sets aimed at getting girls interested in electronics and engineering. GoldieBlox won Intuit's Super Bowl commercial contest this year after it created a viral video of young girls making a Rube Goldberg device.

At February's Toy Fair in New York, the first year JoyLabz attended the event, retailers surrounded its booth to watch demonstrations of the Makey Makey kit. It allows kids (and adults) to make simple musical instruments and more complicated electronics by connecting everyday objects such as silverware, coins — even many foods work if they will conduct electricity — to a computer with an Internet connection. The Makey Makey circuit board functions like a computer keyboard.

Toy Fair attendees also viewed a sampling of videos of the thousands of ways in which early online buyers are tinkering with the kit's elements (then recording their creations). For example: Pizza Hut Canada made an instrument out of dipping breadsticks; the global design firm IDEO uses it for work! shops; and one dad programmed a controller for his son, who has cerebral palsy.

Since Toy Fair, Silver says he's fielded requests from nearly every major toy retailer. Once he redesigns its packaging, he expects orders for MaKey MaKey kits from around the world. And he's got a pipeline of additional products to follow.

Playthings built with software that users can customize are a highlight of the toy industry this year, says Adrienne Appell, senior manager of public relations for the Toy Industry Association. Crowd-funding platform Kickstarter has helped a lot of new companies raise funds for their projects, and many of those were on display for the first time at the fair.

"New products are engaging kids in topics from computing to science to robotics. There are games teaching kids to code," says Appell.

"It's getting kids involved in pretty complex subjects at an early age, but they're having fun."

Silver and Rosenbaum spun MaKey MaKey out of the MIT Media Lab's Lifelong Kindergarten group in 2011, and the men launched a Kickstarter campaign in June 2012 to fund its development. Their work was immediately validated — they set out to raise $25,000 and instead collected $568,106 from more than 11,000 backers. They've sold 100,000 kits since, and are prepared to sell 10 times as many within the next two years as the retail relationships pick up.

But sales weren't ever a goal for Silver — the world has changed enough in the last decade to make his years of research relevant beyond the media lab. What would have been called media art back then is now a business.

"People need products to dream with, not just products to be more efficient," he says. "If I have to prove to you why my product is important, then I don't want to make that product. I want to create something that makes people say, 'This will help me dream.' "

Laura Baverman is a Raleigh, N.C.-based business journalist covering start-ups and entrepreneurship for regional and national publication! s. She pr! eviously covered entrepreneurship for the Cincinnati Enquirer, a Gannett newspaper. Baverman can be reached via e-mail at lbaverman@gmail.comor Twitter @laurabaverman.