Dow Dips Over 100 Points; TriMas Shares Decline On Lowered Forecast

Related BZSUM NASDAQ Tumbles 1.2%; Dresser-Rand Gains On Announcement Of Deal With Siemens Markets Open Lower; Merck KGaA To Acquire Sigma-Aldrich For $17 Billion

Toward the end of trading Monday, the Dow traded down 0.61 percent to 17,174.24 while the NASDAQ dropped 1.22 percent to 4,523.85. The S&P also fell, declining 0.82 percent to 1,994.01.

Leading and Lagging Sectors

In trading on Monday, non-cyclical consumer goods & services shares dropped by just 0.33 percent. Top gainers in the sector included The Clorox Company (NYSE: CLX), up 6.9 percent, and Nature's Sunshine Products (NASDAQ: NATR), up 5.3 percent.

Basic materials sector was the top decliner on Monday. Top losers in the sector included TriMas (NASDAQ: TRS), down 9.9 percent, and Cliffs Natural Resources (NYSE: CLF), off 8.5 percent.

Top Headline

Germany’s Merck KGaA (OTC: MKGAY) announced its plans to acquire Sigma-Aldrich (NASDAQ: SIAL) for $17 billion in cash.

The offer price of $140 per share represents a 37% premium to Sigma-Aldrich’s closing price of $102.37 on September 19.

Equities Trading UP

Sigma-Aldrich (NASDAQ: SIAL) shares shot up 33.63 percent to $136.80 after Germany's Merck KGaA (OTC: MKGAY) announced its plans to acquire Sigma-Aldrich for $140 per share in cash.

Shares of Viasystems Group (NASDAQ: VIAS) got a boost, shooting up 35.81 percent to $15.89 after TTM Technologies (NASDAQ: TTMI) announced its plans to buy Viasystems for a total value of $16.46 per share.

Dresser-Rand Group (NYSE: DRC) shares were also up, gaining 2.60 percent to $81.99 after Siemens AG (OTC: SIEGY) announced its plans to acquire Dresser-Rand for $7.6 billion.

Equities Trading DOWN

Shares of TriMas (NASDAQ: TRS) were down 10.05 percent to $26.57 after the company cut its full-year profit outlook. The company also announced its plans to buy Allfast Fastening Systems for around $360 million.

CARBO Ceramics (NYSE: CRR) shares tumbled 17.85 percent to $69.43 after the company provided an update concerning marketplace conditions and related impact to sales volumes.

Yahoo! (NASDAQ: YHOO) was down, falling 4.96 percent to $38.90 after Bank of America downgraded the stock from Buy to Neutral.

Commodities

In commodity news, oil traded down 1.03 percent to $91.46, while gold traded up 0.09 percent to $1,217.70.

Silver traded down 0.41 percent Monday to $17.77, while copper fell 1.65 percent to $3.04.

Eurozone

European shares were lower today. The eurozone’s STOXX 600 declined 0.53 percent, the Spanish Ibex Index fell 0.49 percent, while Italy’s FTSE MIB Index declined 1.43 percent. Meanwhile, the German DAX fell 0.51 percent and the French CAC 40 fell 0.42 percent while UK shares dropped 0.67 percent.

Economics

The Chicago Fed National Activity Index declined to negative 0.21 in August, versus positive 0.26 in July.

Sales of existing homes fell 1.8% to an annual rate of 5.05 million in August. However, economists were estimating the sales rate to rise to 5.2 million.

Posted-In: Earnings News Guidance Eurozone Futures Commodities M&A Markets

© 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

  Related Articles (CLF + BZSUM) Dow Dips Over 100 Points; TriMas Shares Decline On Lowered Forecast NASDAQ Tumbles 1.2%; Dresser-Rand Gains On Announcement Of Deal With Siemens Markets Open Lower; Merck KGaA To Acquire Sigma-Aldrich For $17 Billion #PreMarket Primer: Monday, September 22: Scotland Seeks To Repair Divide Following Referendum Concur Technologies Gains On Acquisition News; Yahoo! Shares Drop NASDAQ Falls 0.35%; Alibaba Shares Surge

Don't panic after Bill Gross exit

Is Bill Gross' future at Janus really that bright? Only time will tell. NEW YORK (CNNMoney) The bond king has left the building. Should investors run for the exits too?

Investors with money at Pimco are understandably queasy after legendary investor Bill Gross shocked the financial world by jumping ship on Friday.

Some are already yanking their cash from the $2 trillion pile that Pimco manages. Others may even follow Gross to Janus Capital (JNS) where he's poised to manage a new bond fund.

But Morningstar is warning investors to avoid overreacting.

"Now is the time to reassess, but not panic. Yes, Bill Gross -- one of the world's greatest living investors -- is leaving. But there's a deep bench behind him," said Scott Burns, global director of manager research at Morningstar.

Not telegraphed: It's clear Gross's departure caught many people off guard -- even the experts.

Morningstar placed all 50 rated Pimco funds under review on Friday to give it time to weigh the news.

"Fund managers leave but it's rare it happens at such a flagship like this. It's always better for investors when it's deliberate, planned and telegraphed," said Burns.

He said it's possible hundreds of billions in Pimco funds may leave the firm with Gross.

Of course, that's nothing new for Pimco, which has been rocked by 16 straight months of client outflows at its flagship Total Return fund. The Total Return fund is up 3.6% this year, but that's trailing its benchmark, according to Morningstar data.

Pimco's outflow problems weren't helped by the surprise departure earlier this year of former CEO Mohamed El-Erian. His exit triggered a wave of negative stories suggesting Gross's erratic behavior was to blame.

It's possible Pimco could benefit from fewer distracti! ons now that Gross is gone.

Deep bench: Morningstar stressed that Pimco has a number of capable fund managers it can rely on to fill Gross' shoes, including deputy chief investment officers Dan Ivascyn and Mark Kiesel.

Ivascyn was named fixed-income fund manager of the year in 2013 by Morningstar and Kiesel won the prestigious award the year before.

"There's a lot of depth at Pimco. It's not like his departure has left the cupboard bare," said Burns.

It's also worth remembering that Gross secured his reputation as a legend in finance after decades of success. The 70-year-old who founded Pimco back in 1971 isn't exactly a rising star anymore.

"One way or another, this was coming to an end," said Burns.

Jump to Janus? Gross's arrival at Janus is already generating serious excitement. The asset manager's shares surged 38% on Friday as Wall Street bets the blockbuster news will translate to greater profits.

It's too early to say whether mutual investors should move their money to Janus. The release revealing the Gross move was short on details and the relatively young fund he's going to manage isn't even reviewed by Morningstar.

Nor is it clear what strategy Gross plans to implement at Janus. Investors should also beware of the transaction fees that go along with moving money from one fund manager to another.

"He's not even in the saddle yet," said Burns.

Olive Garden Investor Says: Back Off on the Breadsticks

Kristoffer Tripplaar/Alamy NEW YORK -- Maybe there is such a thing as too many breadsticks. In a nearly 300-page treatise on what's wrong with Olive Garden and its management, investor Starboard Value suggests the Italian restaurant chain is being reckless with its unlimited breadsticks. The hedge fund notes the chain's official policy is to bring out one breadstick per customer at a time, plus an extra for the table. But Starboard says servers bring out more than that, leading to waste -- and cold breadsticks. Starboard notes that it isn't pushing for an end to unlimited breadsticks, just more control in how they're doled out. "Darden management readily admits that after sitting just 7 minutes, the breadsticks deteriorate in quality," Starboard said in its presentation. The incredibly detailed document was released Thursday and lays out how Olive Garden could improve its performance. It's part of Starboard's push to take control of the board of the chain's parent company, Darden Restaurants (DRI). The company, based in Orlando, Florida, has come under fire for failing to fix declining sales at its flagship chain. In the latest quarter, Olive Garden's sales fell 1.3 percent at established locations as fewer diners visited. Darden said in a statement that its "Olive Garden Brand Renaissance" is already underway. It said it will review Starboard's plan, but noted that many of the strategies "are already being implemented across our company and are showing results." Part of Olive Garden's troubles stem from the growing popularity of places like Chipotle, where people feel they can get food comparable to a sit-down restaurant for less money. But Starboard also criticized Darden's management of Olive Garden, including its "outdated" advertising strategy, which it said focuses too heavily on TV commercials. It also took issue with the chain's new logo, quoting a tweet by restaurant analyst Howard Penney that said it looked like "a second-grader's cursive practice." Among Starboard's other complaints were Olive Garden's failure to salt the water used to boil its pasta, noting that "If you were to google 'how to cook pasta,' the first step of Pasta 101 is to salt the water." It also criticized Olive Garden's liberal use of salad dressing, which it said drives up costs. And rather than making its soups from scratch, Starboard said Olive Garden should save money and improve consistency by using an outside supplier for the bases. More Alcohol Sales, Please Starboard also noted Olive Garden gets only 8 percent of its sales from alcohol, while other Italian restaurant chains get more than twice that. As for Olive Garden's popular breadsticks, Starboard said quality seems to have declined and compared them to hot dog buns. Jonathan Maze, editor of Restaurant Finance Monitor, compared such criticisms by activist investors to election campaigns. "The activist is going to use what it can find to convince shareholders. The company is like the incumbent that has to defend what it's doing," Maze said. Still, Maze noted that level of detail in Starboard's report was extraordinary. He said that's likely because Starboard is getting input from its slate of board nominees, which includes Brad Blum, a former president of Olive Garden. Despite the criticisms, Darden can point to at least one recent success: its promotion offering customers the chance to pay $100 for seven weeks of unlimited pasta. The stunt gained widespread media coverage and the 1,000 pasta passes made available online sold out in less than an hour this week. The company's annual meeting is scheduled for Oct. 10, when shareholders will get to vote on who gets control of the board of directors.

2 Reasons Intuitive Surgical Inc.'s Stock Could Fall

More than any other technology that has entered the operating room, Intuitive Surgical's (NASDAQ: ISRG  ) da Vinci system has revolutionized how surgery is performed. The company's stock backs up that sentiment: it's up 2,500% since Intuitive went public in 2000. That's an annualized return of over 26% per year!

However, that's no guarantee the stock will continue climbing. As an Intuitive shareholder myself, I surely hope it will; but part of being a good investor is acknowledging that there will always be pitfalls with your investments.

In that vein, I want to investigate two major reasons Intuitive Surgical's stock could fall in the future.

An early version of Intuitive's da Vinci Surgical System. Source: Nimur, via Wikimedia Commons. .

Hospitals continue tightening budgets
While Intuitive Surgical does a fair amount of business abroad, sales of surgical robots in the United States are still a big part of business.

In 2012, da Vinci system sales accounted for 43% of all company revenue, and over three-fourths of those systems were sold in America. Though average selling prices aren't broken down by region, we can assume that roughly one-third of all the company's revenue came from da Vinci sales in the United States.

Then, after years of healthy growth, that division seemed to come to a screeching halt last year

Source: SEC filings.

Management blamed the Affordable Care Act, or ACA, on the slowdown. Because the legislation is the first of its kind, Intuitive argued, hospitals are uncertain of how it will affect reimbursement rates and overall hospital budgets.

That kind of uncertainty leads to reductions in large capital purchases. And with a price tag of over $1 million, Intuitive's da Vinci Surgical System definitely qualifies as a "large capital purchase."

It remains to be seen if hospitals are gaining more visibility on what their budgets will look like moving forward. Intuitive's management has made it clear  that it doesn't expect the situation to be resolved by the end of the year.

If that uncertainty -- or even worse, certainty that the ACA will forever lower hospital budgets -- continues well into the future, it would severely depress Intuitive's stock price, as a huge section of its revenue base would be under pressure.

Professionals questioning da Vinci's efficacy
In 2013, reports began questioning the efficacy of robotic surgery in benign hysterectomies. At the time, the procedure accounted for the largest percentage of operations in which hospitals used the da Vinci.

Opponents claimed the benefits of using the da Vinci were minimal at best when compared to standard laparoscopic operations. That meant the higher costs incurred by the da Vinci couldn't be justified.

Patrick Clingan, Intuitive's director of finance, recently fired back that certain reports weren't taking the full spectrum of variables into account: "Recently we had seen an increase in [studies] ... that inappropriately select subset in analysis as the basis to draw broad conclusions. We encourage the health care community to demand rigor in these analysis."

If you are an investor in Intuitive, it's worth noting that the results of these studies could significantly determine whether hospitals use or abandon the da Vinci. Over a long enough time frame, it's my firm conviction that Intuitive will be continue refining its technology to make the value of its products clear to all professionals.

However, it must continue drawing in enough revenue to fund these advances. Major problems arising from the da Vinci for any of its core procedures would be a clear blow to shareholders, and that is a risk worth noting.

Leaked: This coming blockbuster will make Intuitive shareholders jealous
The best biotech investors consistently reap gigantic profits by recognizing true potential earlier and more accurately than anyone else. Those who invested in Intuitive Surgical back in 2000 already know this. But what's the next blockbuster?

There is a product in development that will revolutionize not just how we treat a common chronic illness, but potentially the entire health industry. Analysts are already licking their chops at the sales potential. In order to outsmart Wall Street and realize multi-bagger returns you will need The Motley Fool's new free report on the dream-team responsible for this game-changing blockbuster. CLICK HERE NOW.

How to find out if your kids are sexting on Snapchat

  What is Snapchat? NEW YORK (CNNMoney) Now there's a way you can spy on Snapchat.

Teens are crazy for the app because parents are not supposed to be able to see what they're sending. The pictures and videos self-destruct, encouraging silly selfies and probably some sexting.

The app targets 18 to 25 year-olds and mystifies most people who are older. But parents who are willing to shell out $40 a month, and spy on their kids, can find out exactly what their children are Snapchatting.

A software called mSpy allows parents to see what their children are sending on Snapchat, as well as who they're calling, texting, emailing and where they are. The parent must download the software onto their child's phone first. Once it is installed, they can see the messages on their own device. It leaves no icon on the child's screen, so children might not even be aware that the app is running on their phones.

The software can monitor Skype calls and WhatsApp messages, too. It's currently used by about 2 million people and more than a third of them are parents, said COO Uri Soroka.

  A look at Snapchat's porn bot

MSpy also advertises to business owners who want to see what employees are doing on company owned devices. A similar software called FlexiSpy makes a pitch to husbands and wives who believe their spouse may be cheating.

It is illegal to download this kind of software on someone's phone without their consent, unless they're a minor, according to mSpy's website.

Snapchat did not respond to a request for comment.

The privately held Snapchat is selective about what figures it makes public, but it is likely losing money given its lack of ads. Still, Snapchat is attracting attention from potential investors. A recent round of funding reportedly values Snapchat at $10 billion.

4 Big Stocks to Trade (or Not)

BALTIMORE (Stockpickr) -- Put down the 10-K filings and the stock screeners. It's time to take a break from the traditional methods of generating investment ideas. Instead, let the crowd do it for you.

Read More: 5 Stocks With Big Insider Buying

From hedge funds to individual investors, scores of market participants are turning to social media to figure out which stocks are worth watching. It's a concept that's known as "crowdsourcing," and it uses the masses to identify emerging trends in the market.

Crowdsourcing has long been a popular tool for the advertising industry, but it also makes a lot of sense as an investment tool. After all, the market is completely driven by the supply and demand, so it can be valuable to see what names are trending among the crowd.

While some fund managers are already trying to leverage social media resources like Twitter to find algorithmic trading opportunities, for most investors, crowdsourcing works best as a starting point for investors who want a starting point in their analysis. Today, we'll leverage the power of the crowd to take a look at some of the most active stocks on the market today.

Without further ado, here's a look at today's stocks.

Read More: 5 Breakout Stocks Under $10 Set to Soar

DuPont

​

Nearest Resistance: $69

Nearest Support: $66

Catalyst: Activist Breakup Push

Chemical giant DuPont (DD) is up more than 4.5% this afternoon, boosted by upside speculation following a push from activist investor Nelson Peltz to break apart the company after sluggish returns. Peltz's Trian Fund Management thinks that DuPont's agriculture and health businesses should be spun off from the rest of the business, in a move that would release value back to shareholders.

Mr. Market likes the plan. While DuPont has been trading in a well-defined downtrend since the start of June, today's big gap higher broke the bearish price action. From here, DD is set for a retest of prior 2014 highs at $69. It makes sense to wait for that level to get taken out.

Read More: 10 Stocks Billionaire John Paulson Loves in 2014

FedEx

​

Nearest Resistance: N/A

Nearest Support: $155

Catalyst: Q1 2015 Earnings

FedEx (FDX) is up more than 3% this afternoon, boosted by positive earnings news for its fiscal first quarter of 2015. FedEx earned profits of $2.10 per share for the quarter, beating analysts' $1.96 best guess, as the firm noted that its buyback program added 15 cents of earnings to every share of the shipping stock. The firm sees full year EPS in the $8.50 to $9 range, a target that comes in line with Wall Street's $8.83 per share estimates. FDX is hitting new highs on the move today.

Making new highs is significant from an investor psychology standpoint because it means that everyone who has bought shares in the last year is sitting on gains. As a result, the "back to even" mentality is less of a concern than it would be for a name with a higher proportion of shareholders sitting on losses. For traders who aren't risk-averse, there's still time to build a position in FedEx now, just keep a tight protective stop in place.

Read More: Warren Buffett's Top 10 Dividend Stocks

General Mills

​

Nearest Resistance: $53.50

Nearest Support: $50

Catalyst: Q1 2015 Earnings

$31 billion food maker General Mills (GIS) is down more than 3.6% this afternoon, following the firm's first quarter earnings call for fiscal 2015. GIS earned profits of 61 cents per share for the quarter, missing analysts' 69-cent consensus estimate. Slipping margins and worse than expected sales overcame the fact that management reiterated their earnings projections for the quarter ahead.

Technically speaking, GIS is in trouble. While today's drop is ugly, it's this stock's longer-term descending triangle setup that spells bigger trouble for shareholders this month. If shares violate support at $50, GIS is a sell.

Read More: 10 Stocks George Soros Is Buying

Glimcher Realty Trust

​

Nearest Resistance: $14

Nearest Support: $13.60

Catalyst: Acquisition

Shares of Glimcher Realty Trust (GRT) are seeing a second day of big volume, following Tuesday's news that Washington Prime Group (WPG) was buying GRT in a deal valued at $4.3 billion when it was announced. GRT shareholders get $10.40 in cash, plus 0.1989 shares of WPG for each share of GRT they own. That was enough to spike shares more than 32% before the open yesterday, but if you missed this trade, the money has already been made here. There's currently a barely-there 0.71% merger arbitrage premium left in the deal.

To see these stocks in action, check out the at Most-Active Stocks portfolio on Stockpickr.



-- Written by Jonas Elmerraji in Baltimore.

RELATED LINKS:

>>5 Big Financial Stocks to Boost Your Gains This Month

>>Hedge Funds Love These 5 Tech Stocks -- but Should You?

>>4 Stocks Breaking Out on Big Volume

Follow Stockpickr on Twitter and become a fan on Facebook.

At the time of publication, author had no positions in the names mentioned.

Jonas Elmerraji, CMT, is a senior market analyst at Agora Financial in Baltimore and a contributor to

TheStreet. Before that, he managed a portfolio of stocks for an investment advisory returned 15% in 2008. He has been featured in Forbes , Investor's Business Daily, and on CNBC.com. Jonas holds a degree in financial economics from UMBC and the Chartered Market Technician designation.

Follow Jonas on Twitter @JonasElmerraji

How to Prepare for a Hurricane

A quiet hurricane season can lull us into complacency, but it's important for homeowners in hurricane-prone areas to stay on top of weather reports and their insurance policies. "It's important to keep in mind that even one major hurricane can do catastrophic damage and it's important to be prepared just in case one strikes in 2014," says Bonnie Schneider, national television meteorologist and author of "Extreme Weather."

Here are tips from insurance and weather experts on surviving a hurricane season.

1. Have emergency supplies stocked year-round
If you have a flashlight, some water, a first aid kit, and batteries stashed away for emergencies and think you're ready for the next disaster, you're not alone. You're also not fully prepared. Just three in 100 people have all the emergency kit supplies recommended by the Federal Emergency Management Agency (FEMA), according to a survey of 1,000 adults commissioned by Insure.com.

Dust masks, plastic sheeting and whistles are the least likely items to be on hand, according to our emergency-preparedness survey.

2. Prepare for flooding
Flood insurance is increasingly important coverage, even if you don't live along a coastline. According to Jeffrey O'Connor, vice president at Cleveland-based Alex N. Sill Adjustment Co.:

It seems like no place is safe recently. Do you know where some of the highest winds from Superstorm Sandy were recorded? Cleveland, Ohio! We all know the coastal areas of the south and southeast are most susceptible to hurricane damage of flooding and wind, but it is not uncommon to have hurricane-force winds extending hundreds of miles inland. Remember that a hurricane often brings with it large amounts of rain even hundreds of miles away from the coastal area it originally strikes. Rivers, streams and creeks can overflow, causing tremendous damage.  

Ray Altieri Jr., president at Tampa-based Altieri Transco American Claims Corp., a public insurance adjuster firm, says:

Homeowners should be keenly aware that there is a difference between wind and water damage if the water comes as a flood. Carriers have been very reluctant to mesh the two types of damage together on claim payments, so property owners must insure the perils of wind and flood separately and adequately.

3. Know what your current home insurance policy covers
Don't assume your homeowners insurance policy will cover hurricane damage. Christie Alderman, vice president at Chubb Personal Insurance, says some insurers offer "named-peril" policies, meaning they cover only the perils listed in the policy, such as fire and theft. They might not encompass all weather events. An "all-risk" policy will give you more protection.

"Chubb's Masterpiece policy is an 'all-risk' policy and will respond to most weather events," says Alderman.  "However, some coverage, such as coverage for flood, must be purchased separately."

4. Obtain additional insurance coverage if needed
Once you figure out what your current policy covers, you'll have a better understanding of what it doesn't cover. This is the first step in deciding whether you need hurricane insurance for storm damage that won't be covered by your homeowners policy. Altieri says:

I recommend that homeowners discuss their policy coverage with their agents once a year, even if nothing has changed. The renewal period is the best time to do that because the topic is fresh on everyone's mind at the time. Policyholders should review their renewal package and be sure to question their agent about any changes that are proposed for the new year of coverage, so they have a general understanding of matters. Homeowners also need to be aware that any changes to the property should be reported to their agent to be sure coverage is not altered in any way by a property's physical or occupancy change.

5. Put money aside for insurance deductibles
Weather-related insurance claims typically require that you pay your deductible toward the damage. Alderman says you should know how much that deductible will be, and put that money aside in savings just in case you need to file a claim.

She also notes that your deductible for hurricane, hail, or wind could be different from your standard homeowners deductible. For example, your policy might require a 2% deductible for wind, but a flat $1,000 deductible for theft. Always check your policy's current declarations page in case your insurer changed your deductible at renewal time.

"And they should check with their agents to see if the insurance company provides loss-prevention services like home appraisers who can provide guidance on how to protect a home from a wind event," says Alderman.

6. Prepare your home for severe weather
Making some repairs in advance may help your home withstand storms better than if your home is already in need of maintenance. Alderman suggests that homeowners trim their trees and consider removal or review by an arborist if there are any trees within falling distance of the home. Other tips include checking for loose shingles, cleaning gutters and downspouts, and installing storm shutters and/or impact glass on all openings around the home.

"If your home does not meet current construction industry standards, some simple modifications can help to reduce property loss in the event of a hurricane," says Alderman.

7. Be ready to evacuate
Whether by choice or by government order, many extreme weather situations require residents to evacuate their homes. A few preparations in advance can make this process a lot easier on everyone.

Alderman suggests that you make arrangements for your automobile, boat, pets and valuables before the storm hits.:"Have an evacuation plan and knowledge of local evacuation routes and shelters. Prepare medicines, important papers (in Ziploc or Tupperware container) and phone numbers, including your insurance information, and fill your car with gas."

Insure.com's emergency-preparedness survey revealed that 60 percent of Americans do not have a designated emergency meeting location for their families. And 96% percent said their spouse has a cell phone, but 16 percent don't know the number without looking it up.

8. Know others' plans
You may be prepared; but what about others? Does your workplace have a disaster plan? Does your child's school have a plan? Will they "shelter in place"? Disasters can strike when your family members are not under your control. Find out what plans are in place for other locations.

9. Track the weather
During storms, it's critical to tune in to your local radio, television station, or NOAA weather channel to keep track of the hurricane's progress and location. John Marini, chief operating officer and vice president at Utica-based Adjusters International, also suggests that residents in tornado alley consider purchasing NOAA weather radios. 

"These individual warning devices can really come in handy during the night when most people are sleeping and have their televisions off," says Marini.

10. Make a home inventory before a storm strikes
Taking pictures and/or videos of every room in your house will help you create a record of your belongings if your home is destroyed in a hurricane. The Insurance Information Institute's free online Know Your Stuff home-inventory software can help you with this task. According to O'Connor:

It's important to have evidence of what your house and possessions looked like before the storm. Then you will also need to take photographs or video of the damage as soon as you can after the hurricane strikes and to continue to take photographs or video if the loss conditions worsen. Keeping detailed records both before and after the hurricane is critical when filing an insurance claim.

More than half of people surveyed by Insure.com (65 percent) said they do not have a complete inventory of everything in their house.

Making a home inventory is part of good financial planning: You won't make a home insurance claim for items you don't remember you had. Among those with an inventory, 79 percent keep it at home, and 21 percent store their inventories elsewhere. Of those who keep their home inventory outside of the house, 31 percent have a family member safeguarding it, and 18 percent stash it at work.

This article originally appeared on Insure.com.

Top dividend stocks for the next decade
The smartest investors know that dividend stocks simply crush their non-dividend paying counterparts over the long term. That's beyond dispute. They also know that a well-constructed dividend portfolio creates wealth steadily, while still allowing you to sleep like a baby. Knowing how valuable such a portfolio might be, our top analysts put together a report on a group of high-yielding stocks that should be in any income investor's portfolio. To see our free report on these stocks, just click here.

You may also enjoy these related articles:

Insurance for hurricanes Home insurance customer satisfaction ratings 15 ways to save on home insurance

Stocks: 4 things to know before the open

Click chart for in-depth premarket data. LONDON (CNNMoney) It looks like markets could rise Monday, buoyed by an easing of tension over Ukraine.

Here are the four things you need to know before the opening bell rings in New York:

1. International markets strong: European markets were all surging in early trading, with the Dax marching 1.5% higher. The German foreign ministry reported "some progress" in talks Sunday with Russia and Ukraine.

U.S. stock futures were edging up in the early hours. Asian markets mostly ended with gains.

2. Stock market movers -- Monster, Time Warner: Shares in Monster Beverage (MNST) were under a bit of pressure Monday after the stock surged by 30% Friday. Investors were excited last week when Coca-Cola (KO) announced it was buying a large stake in Monster. Shares in the energy drinks company were declining by about 1% premarket.

Time Warner (TWX) shares were up 1.6% but are still 12% down on the month after Rupert Murdoch's 21st Century Fox (FOXA) walked away from a takeover bid.

3. Earnings and economics: The National Association of Home Builders will release its latest monthly stats on the U.S. housing market at 10 a.m. ET.

Retailers Urban Outfitters (URBN) and American Apparel (APP) are expected to report earnings after the closing bell.

American Apparel delayed its results to give its new board extra time to review the firm's financials. The company has been in turmoil since its controversial CEO Dov Charney was ousted in June.

4. Friday market recap: U.S. stocks closed mixed Friday. The Dow lost 51 points and the S&P 500 also landed in the red. The Nasdaq edged up 0.3%.

But for the week as a whole, the three major indexes all locked in gains.

Trump Entertainment Files for Bankruptcy Again

Spencer Platt/Getty ImagesTrump Entertainment Resortsplans to close the Trump Plaza Hotel and Casino on Sept. 16. ATLANTIC CITY, N.J. -- Trump Entertainment Resorts filed for bankruptcy Tuesday and threatened to shut down the Taj Mahal Casino Resort, which would make it the fifth Atlantic City casino to close this year. The company owns Trump Plaza, which is closing in a week, and the Taj Mahal, which has been experiencing cash-flow problems and had been trying to stave off a default with its lenders. The company said the Taj Mahal could close Nov. 13 if it doesn't win salary concessions from union workers. It's the fourth such filing for the struggling casino company or its corporate predecessors. The company filed in U.S. Bankruptcy Court in Wilmington, Delaware, saying it has liabilities of between $100 million and $500 million, and assets of no more than $50,000. It missed its quarterly tax payment due last month, and says it doesn't have the cash to make an interest payment to lenders due at the end of the month. It also says both its Internet gambling partners have taken steps to end their contracts with Trump Entertainment. It said cost-cutting negotiations with the main casino workers' union have stalled, and that the company is preparing notices warning employees the Taj Mahal may close on Nov. 13. "Absent expense reductions, particularly concessions from their unions, the debtors expect that the Taj Mahal will close on or shortly after November 13, 2014 and that all operating units will be terminated between November 13, 2014 and November 27, 2014," the company wrote in its bankruptcy filing. If the company makes good on its threat to close the Taj Mahal, it would further rock an already shell-shocked casino market in what just a few years ago was the nation's second-largest gambling market after Nevada. Now, New Jersey has fallen behind Pennsylvania. Three other Atlantic City casinos have closed this year, as the industry struggles with competition in nearby states. Atlantic City began the year with 12 casinos, but could end it with seven if the Taj Mahal closes. So far this year, the Atlantic Club, Showboat and Revel have gone out of business, with Trump Plaza closing next Tuesday. The bankruptcy filing came a day after Gov. Chris Christie's administration told the state's casinos and horse tracks that they can legally offer sports betting -- a move that defies a federal ban on it and is sure to be challenged in court by the professional and amateur sports leagues which have fought it thus far. Trump Entertainment has struggled since the day it emerged from its last bankruptcy in 2010, having filed the year before. It came out of bankruptcy with $350 million in debt, and currently has more than $285 million in debt. As of the end of July, the company employed 2,800 people. The company has been trying to reduce expenses and debt, including selling its former Trump Marina casino for $38 million to Landry's, which now runs it as the Golden Nugget Atlantic City. It also sold the Steel Pier for $4.5 million; a warehouse for $1.9 million, and its former corporate offices in a converted firehouse for $3.1 million. That building now houses the Casino Reinvestment Development Authority. It has been trying for years to sell Trump Plaza. A deal to sell it to a California firm for $20 million last year fell through. The company also said it has been in negotiations with Local 54 of the Unite-HERE union on cost-cutting measures it says it needs to survive, but that the union has rejected them. Bob McDevitt, the union president, said that Trump Entertainment wanted union members to surrender their health insurance and pension plans, something he rejected. McDevitt said that even if the union agreed to those concessions, they would only total $11 million per year, which would hardly make a difference in the company's finances. The concessions would be on top of a separate $4 million round of union concessions the company won in 2011. Donald Trump owns a 9 percent stake in the firm, but neither controls it nor has any involvement in it. He is suing the company to remove his name from the properties, which he says have fallen into disrepair and do not meet agreed-upon standards of quality and luxury.

CSX: Improving Economic Conditions Make It an Interesting Pick

CSX (CSX) has been on a roll this year. The company has outperformed the market, and it looks like the company will continue doing well in the future. In fact, the strategic network investments and improving service reliability of CSX have led to solid intermodal growth that support highway to rail conversions.

Better times ahead

The domestic coal volume is expected to grow at a double-digit rate during the third quarter, with utilities continuing to rebuild inventories. CSX is recruiting front-line personnel and making selective investments in infrastructure and freight cars to grow its business efficiently and to create competitive advantages for its customers.

CSX remains confident in its ability to sustain double-digit earnings growth and margin expansion for its shareholders during 2015 and beyond. CSX also plans to further increase its capital investment by approximately $100 million to $2.4 billion to support sustainable growth for this year which in turn also enhances key infrastructure and adds freight cars to help drive long-term growth.

CSX witnessed an increase in demand, particularly for hauling coal and crude oil during the second quarter of 2014. According to Logan Purk of Edward Jones, the rising volume numbers look appealing, but they might have been exaggerated by shipments that were delayed earlier this year.

Improving metrics

There's an improvement in the core earning strength of the company with the broad-based economic momentum, which is driving value for shareholders, according to CSX Chairman, President and CEO Michael Ward.

CSX has confirmed its prediction for reserved profit growth this year and double-digit profit growth in 2015 and beyond.

TheStreet Ratings team rates CSX as a buy with ratings score of A- based on the convergence of positive investment measures, which should help this stock outperform majority of other stocks. The strength of the company can be viewed in several areas viz. robust stock price performance, revenue growth, reasonable valuation levels and solid financial position with reasonably low debt levels.

Positive momentum

The impressive second-quarter results are evidence of the sophisticated economic momentum across most markets and a major transition in the energy markets. There were impressive volume levels during this quarter that exceeded the management's expectations coupled with maintaining stable operations and taking supplementary steps to return service to the high levels as per the customer expectations from CSX over the last few years.

There's an exciting company growth for the shareholders. CSX added people and capacity including locomotives, freight cars and infrastructure. The total volume increased more than 8% to nearly 1.8 million loads during the quarter with solid growth in merchandise, intermodal and coal.

The solid increase in the total revenue reflects overall volume growth and increased pricing across most markets.

CSX is believed to have greater variability in both its export and domestic coal business which reflects the global market conditions and the company's fixed variable contract structure.

Hence, CSX remains confident about the value creation for its customers compared with the rising demand for its service product which paves the path for growth and pricing above rail inflation in the long-term.

Further, ethanol shipments increased due to higher ethanol production levels owing to lower corn prices. The construction sector displayed a rebound in shipments with a growth rate of 8% reflecting the ongoing recovery of housing and construction activity. Finally, the strength in the energy-related commodities including crude oil, liquefied petroleum gas and frac sand resulted in 11% growth of the industrial sector.

Conclusion

All in all, CSX looks like a solid investment due to the various improvements that it is making. Investors should continue investing in the stock for long-term gains.

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This E&P Firm Is Attractive Enough

In this article, let's take a look at Cabot Oil & Gas Corporation (COG), a $14.21 billion market cap company, which is an independent oil and gas company engaged in development, exploration and production in North America

Huge Assets

The company´s operations are primarily focused in the Marcellus Shale in Pennsylvania, the Eagle Ford in south Texas and in Oklahoma. The company's asset base is now among the most diverse of the small oil and gas firms.

At the end of last year, the company had reserves of 5.5 trillion cubic feet of equivalent, with net production of 1,130 million cubic feet of equivalent per day. Natural gas represented 96% of production and 97% of reserves.

The firm controls a highly productive, low-cost drilling inventory targeting the dry gas Marcellus shale in Pennsylvania.

The Marcellus Shale

It is the star of the firm, because it is the largest operating area and represents its largest growth and capital investment area, with approximately 200,000 net acres in the dry gas window of the play.

Last year, the production had an increase of 70.3%, from 209.3 Bcfe to 356.5 Bcfe. This number represents about 86% of total production. Further, the gas company invested $815.8 million here and drilled 94.5 net horizontal wells.

Eagle Ford Shale

The company holds more than 60,000 net acres in this oil window at relatively low cost. Last year, production of net liquids and natural gas has increased and represents approximately 3% of full-year production. Further, the firm invested $261.5 million s.

Estimated One-Year Price

According to Yahoo! Finance, the estimated one-year target share price is $42.33, so if you buy shares at current market price ($34.05), your return from price appreciation would be 24.3%. In addition, you have to consider any cash flow received by the asset. So for holding the stock one year, you'll be paid a dividend of 2 cents per share each quarter, totalizing $0.08 at the end of the year. If we divide this number by current price per share, we obtain the dividend yield, which is the other component of the return on an investment for a stock, and in this case is 0.23%. So the total expected return for investing in Cabot is 24.53%, which we believe is an attractive stock return.

Revenues, Margins and Profitability

Looking at profitability, revenue growth by 18.57% led earnings per share increased in the most recent quarter compared to the same quarter a year ago ($0.28 vs $0.21). During the past fiscal year, the company increased its bottom line. It earned $0.67 versus $0.31 in the prior year. This year, Wall Street expects an improvement in earnings ($1.15 versus $0.67).

Finally, let´s compare the best measure of performance for a firm's management: the return on equity. The ROE is useful for comparing the profitability of a company to that of other firms in the same industry.

Ticker	Company	ROE (%)
COG	Cabot	12.69
ECA	Encana Corp.	4.59
CPG	Crescent Point Energy Corp.	1.70
CXO	Concho Resources Inc.	6.68
EQT	EQT Corp.	9.68
	Industry Median	-1.00

The company has a current ROE of 12.69% which is higher than the industry median and the ones exhibit by Encana (ECA), Crescent Point Energy (CPG), Concho Resources (CXO) and EQT (EQT). In general, analysts consider ROE ratios in the 15-20% range as representing attractive levels for investment. It is very important to understand this metric before investing and it is important to look at the trend in ROE over time.

Relative Valuation

In terms of valuation, the stock sells at a trailing P/E of 37.8x, trading at a discount compared to the average of the industry. To use another metric, its price-to-book ratio of 5.8x indicates a premium versus the industry average of 1.86x while the price-to-sales ratio of 7.2x is above the industry average of 4.2x.

As we can see in the next chart, the stock price has an upward trend in the five-year period. If you had invested $10.000 five years ago, today you could have $35.458, which represents a 28.8% compound annual growth rate (CAGR).

Final Comment

With a good asset quality, Cabot is well positioned among the E&P firms, with good number of available drilling locations, reasonable per-unit production costs and not excessive prices.

The Marcellus assets continued to have good productivity and we think this trend will continue. The U.S. natural gas industry could remain under pressure but we think Cabot has good drivers for growth. The Marcellus will reach 90% of Cabot's production in the near future. Moreover, the PE relative valuation and the return on equity that significantly exceeds the industry average and make me feel bullish on this stock.

Hedge fund gurus like Leon Cooperman (Trades, Portfolio), Jean-Marie Eveillard (Trades, Portfolio), John Burbank (Trades, Portfolio), Jim Simons (Trades, Portfolio), Ray Dalio (Trades, Portfolio), Ron Baron (Trades, Portfolio) and John Keeley (Trades, Portfolio) added this stock to their portfolios in the second quarter of 2014.

Disclosure: Omar Venerio holds no position in any stocks mentioned

Also check out: Jean-Marie Eveillard Undervalued Stocks Jean-Marie Eveillard Top Growth Companies Jean-Marie Eveillard High Yield stocks, and Stocks that Jean-Marie Eveillard keeps buying John Burbank Undervalued Stocks John Burbank Top Growth Companies John Burbank High Yield stocks, and Stocks that John Burbank k

Will Netflix, Inc.'s European Expansion Be a Big Hit for Investors?

The calendar has turned to September, and that means that Netflix (NASDAQ: NFLX  ) is about to embark on one of the biggest international expansion projects ever. Later this month, Netflix service will become available in France, Germany, Austria, Switzerland, Belgium, and Luxembourg.

Netflix is already growing rapidly. Last quarter, revenue rose 25% year-over-year. Expanding into 6 more markets (including 2 large ones in France and Germany) will keep revenue rising quickly. However, strong revenue growth does not guarantee stock price appreciation.

Netflix will add 6 new markets in Europe later this week (Photo: The Motley Fool)

Netflix trades at a very high valuation: more than 100 times expected 2014 earnings. Costs are also rising nearly as quickly as revenue is growing -- and international expansion will be expensive. Just how successful must the European expansion be for Netflix shares to keep moving higher? Read on to find out.

Bringing Netflix to more of Europe
Today, the Netflix streaming service is available in a handful of European countries: the U.K., Ireland, Denmark, Norway, Sweden, Finland, and the Netherlands. Those 7 countries have 35 million-40 million broadband households who might potentially subscribe to Netflix.

Netflix's upcoming expansion will nearly triple its addressable market in Europe, as its 6 new markets have more than 60 million broadband households, according to Netflix. This will bring its total international addressable market to roughly 180 million households: twice the size of the domestic market.

Expansion will be costly
International expansion is a long-term play for Netflix. The company began expanding beyond the U.S. nearly 4 years ago, and its international operations have posted cumulative losses of more than $800 million since then.

Netflix's international segment has yet to generate a contribution profit in any quarter. It would have been on track to reach breakeven in Q3 (or at worst, Q4) of 2014. However, the looming expansion in Europe will be dilutive to earnings. For Q3, Netflix has projected that its international contribution loss will widen sequentially from $15 million to $42 million.

Netflix needs to invest heavily in content when it enters a new market (Photo: The Motley Fool)

Indeed, Netflix's track record in international markets shows that it takes 2-3 years for a typical market to reach breakeven. The long ramp-up to profitability is inherent in Netflix's business model. Whereas cable TV companies pay for content on a per-customer basis, Netflix generally pays a flat fee that does not vary based on subscriber totals.

When Netflix launches in a new market, it must first invest in content deals in order to attract potential new customers. It also needs to spend money on advertising in order to build consumer awareness. Yet it starts with no subscribers (and thus no revenue). This leads to significant initial losses in new markets.

Quantifying the cost of expansion
The near term cost of expanding in Europe will be significantly higher than the $27 million projected increase in Netflix's international contribution loss this quarter. Netflix will not launch its new markets until later in September, so it will only be paying a small portion of its quarterly content bill.

The company also tends to ramp up its marketing spending after it launches its new markets. Lastly, Netflix increases its content spending significantly in the years following a new market launch, according to CFO David Wells. These 3 factors mean that international contribution losses will spike higher again in Q4.

The closest parallel to the upcoming European expansion was Netflix's January 2012 entry into the U.K and Ireland. Launch-related costs drove a $43 million sequential increase in Netflix's international contribution loss in Q1 2012.

The new markets launching this month have nearly 3 times as many broadband households as the U.K. and Ireland. As a result, the initial quarterly contribution loss from these new territories could be almost 3 times the size of the $43 million hit from the U.K. and Ireland launch: perhaps $100 million-$120 million.

Offsetting this, all of Netflix's other international markets have been steadily reducing their contribution losses each quarter. Netflix's international contribution loss is still likely to rise substantially beyond $42 million in Q4, and could go as high as $100 million.

The long-term potential for European expansion
Nobody really knows how profitable international markets can be in the long run, as none of Netflix's markets have yet reached maturity. Domestic profitability trends may be the best proxy for future international profitability. That said, some of Netflix's new markets may be harder to penetrate than the U.S. market, due to higher competition and/or lower interest in Hollywood content.

Netflix launched streaming video in the U.S. in early 2007. In late 2010 (about 4 years ago), Netflix began treating streaming as its primary offering, not just as an add-on to DVD rental plans. By the end of that year, Netflix already had about 20 million U.S. subscribers: a testament to its having built a strong brand in the U.S. during the previous decade.

Netflix dominates U.S. streaming thanks to its first-mover position (Photo: The Motley Fool)

Based on this strong starting position, Netflix expects to surpass a 30% domestic contribution margin next year. Nearly half of all U.S. broadband households (or approximately 45 million households) will subscribe to Netflix, enabling that strong margin result. Beyond that, management is still evaluating how far margins could expand.

Netflix's new international markets could potentially reach a 30% contribution margin one day -- but that day is far away. In the U.S., Netflix has been increasing its market penetration by about 7 percentage points per year recently.

At that rate, it would take 7 years for Netflix to reach 50% penetration of a new market. That appears to be the approximate level necessary to produce a 30% contribution margin -- at least based on Netflix's current business model.

However, if a 30% contribution margin is ultimately attainable, Netflix can afford to be patient. Based on the size of Netflix's new European markets (more than 60 million broadband households), reaching a 50% penetration rate and 30% contribution margin would result in an annual profit stream of more than $1 billion. That would fully justify the start-up costs, which will almost certainly be less than $1 billion.

Foolish final thoughts
If Netflix can be anywhere near as successful in its new European markets as it has been in the U.S., its international expansion will be a good thing for long-term investors. Netflix believes it can ultimately convert two-thirds or more of U.S. households to Netflix subscribers -- but even with 50% penetration (or a little less), it can earn strong margins.

The risk for investors is if Netflix is significantly less popular in its new markets. There are fewer English speakers than in its current European markets, which could force Netflix to rely more on local content than on Hollywood content (its specialty).

Additionally, competitors have had more time to react in Netflix's new markets, whereas Netflix had a stranglehold on the U.S. and Canadian markets before other media companies realized that streaming video could be a huge business.

Despite these obstacles, Netflix has a good shot to be very successful in continental Europe. If Netflix can increase its market penetration there by at least 5 percentage points per year in the next few years, investors can be satisfied that those markets will ultimately produce big profits.

Your cable company is scared, but you can get rich
You know cable's going away. New competitors like Netflix are stealing the show with new business models. But do you know how to profit from this trend? There's $2.2 trillion out there to be had. Currently, cable grabs a big piece of it. That won't last. And when cable falters, three companies are poised to benefit. Click here for their names. (Hint: Netflix isn't one of them!)