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$100 Trillion In DebtGovernments spend a ton,

 but little gets accomplished

I SSUES & I NSI GH TS A12- 13

Charles Tiffany, TitanHe built a jewelry company that glitters in themodern age

LEADERS & SUCCESS A3

Taylor MorrisonThe homebuilder arrives lateto the housing-rebound party 

T H E N E W A M E RI C A A 5

ETFs Run With Bulls A diverse group of funds soarsduring the lengthybull market

MU TUAL FUNDS & ETFs A6- 9

IPO AnalysisOur new column gives youa jump on promising IPOs

I N V E ST O R ’ S C O R N E R B 3

BY KEVIN SHALVEY

IN V E S T O R' S B U S IN E S S D A ILY

China’s310 millionmobilegam-ers increased their spending by 247%in 2013,an officialChinesegovernment statistic that hasChina tech companies scram- blingto grabhandset gamers.

Qihoo 360 Technology QIHU

,BaiduBIDU andothers spent heavi-lyin 2013 onnew mobile-gaming apps and distribution platforms,efforts that in Q4 showed someearly signsof payingoff.

“2014is a criticalyearformany Internet companies in China,”T.H. CapitalanalystTian X.Houwrote in a Monday researchnote. “Webelievethestrong mo-mentum in both mobile andsearchcan continue. . .”

Mobile gaming revenue inChina is still relatively smallwhen compared with overallgamingrevenue,but it’sgrowing at a much higher rate as gamersditchtheir PCsfor smartphones.

Mobile gaming sales growth is

expected to slow in 2014 to94.2% from 247%, which none-theless will outpace the 28.9%advance in online gaming over-all, according to local researchfirmiResearchGlobal.

Tech giant Tencent long has been China’s desktop gaming leader, with NetEaseNTES trailing it. But the mobile gaming land-scape doesn’t yet seem to be setin stone, say analysts. NetEase,for example, hasn’t managed totransfer its success in desktopgamingto mobilegaming.

Much of the money that’s beingspent on mobilegaming inChina istowardbuildingapp-dis-tribution platforms.

Qihoo, Baidu AppLeadersQihoo in Q4 handled about

39% of all mobile-app distribu-tion in Q4, according to MaximGroupanalyst EchoHe.

Baidu,whichlastyearpaid$1.9 billion for app store 91 WirelessWebsoft, hasabout41%, accord-ingtoCEORobinLi.

The neck-and-neck competi-tionhas ledQihooto offer devel-opersa deal in which theyget tokeep100% of proceeds from thefirst 500,000 renminbi that agame makes. After that, Qihoostartsto takea cut,co-CFOZuoliXu told analystson a conferencecalllastweek.

“Themoregames(coming)intothemarket,the moreprosperousthewholeindustry is,”saidZuoli.

 About 20% of Baidu’s Q4 reve-nuecamevia mobilegaming andother mobile products, up from

10%six monthsearlier. About 17% of Qihoo’s Q4 sales

came via mobile games. Mobilegamingsalesjumped131%to$63million in Q4, outpacing overallgrowthat the company, co-CFOZuoli Xu told analysts on a Fri-daymorning conference call.

“We expect Qihoo’s mobilegame revenue to grow 260%” in2014,wroteanalyst He.

The number of companies building games in China grew22.5% last year, according tomStoreTracker.

The boom in mobile gaming is

attractingbig players.E-commerce giant Alibaba,

whichis widelyexpected toholdaU.S.IPOin2014andispartially owned by YahooYHOO, announcedin January that it would alsolauncha mobilegaming.

“MobilegamesaretoobigacakeforAlibabatopassup,”iResearchanalystCaoDi told ChinaDaily.

 Alibaba says it’s attracted tothe industry because Chinesegamers are more apt to spendmoneywhile playinggamesthanareWestern gamers,wroteMela-nie Lee, a writer with Alibaba-ownedwebsiteAlizila.com.

Despite a heavy and continu-ing investment in mobile gam-ing, it’sunclearwhenthese com-panies will start seeing returns,according to UBS analyst Erica

PoonWerkun.Baidu’srevenuegrowthhas ac-

celerated for thepast three quar-ters. But its adjusted EPS rose just 6% in Q4 after Q3’s 4% gainandQ2’s1%dip.

“We expect operating marginto remain under pressure in2014,”wrotePoon Werkun.

Mobile gaming sales account-edfor 16.7% of allonlinegaming sales in China in 2013, according to iReasearch. That’s expectedtojumpto31.4%by2017.

The app stores run by Qihoo,Baidu and othersoffer apps thatrun on smartphones using Goo-gleGOOG  Android operating sys-tem.ButAppleAAPL,whichonlyof-fersappsviaitsAppStore,isben-efitting too.About44.4%of 2013mobile game revenue in Chinacame via handsets using Apple’siOS,accordingto iResearch.

Alexion Pharma Hikes OutlookOn French Reimbursement DealBiotech’s Shares Jump 7%

BY JOHN MERLINE

IN V E S T O R'S B U S IN E S S DA ILY

Burieddeepin a sectionof Presi-dent Obama’s budget, releasedthis week,is aneye-opening fact:This year, 70% of all the money the federal government spendswillbe in theform of directpay-ments to individuals, an all-timehigh.

In effect, the government has become primarily a massivemoney-transfermachine, taking $2.6trillionfromsomeandhand-ing it back out to others. Thesegovernment transfers now ac-count for 15% of GDP, another

all-time high.In 1991,directpay-ments accounted for less thanhalfthebudgetand10%ofGDP.

What’s more, the cost of thesedirect payments is exploding.Even after adjusting for infla-tion, they’ve shot up 29% underObama.

ObamaCare, Medicare...Where do these checks go?

The biggest chunk, 38.6%, goesto pay health bills, eitherthrough Medicare, Medicaid orObamaCare. A third goes out inthe form of Social Security checks. Only 21% goes towardpoverty programs — or “incomesecurity” as it’s labeled in the budget— and a mere5% ends upinthehandsofveterans.

Interestingly, despite Obama’sfrequent pledges to reduce in-come inequality, the share of di-rect paymentsgoingtoward “in-come security” has droppedfrom 25% in 2009 to 20% in2014. (The average share from1980to2008was25.4%.)

Obama’sFiscalYear 2015 bud-get calls forthis shareto drop to just17% by 2019,as his programsdevote more and more federaltax money to middle-class enti-tlement programs such asObamaCare.

Here’s another way to look atit: If all these federal direct pay-ments went only to the poor,every person living in poverty today would receive an annualcheckworth$55,900.

The 1% HandoutsInstead, a surprisingly large

amountof federalmoneyis hand-ed out to wealthy Americansthrough Social Security, Medi-care, farm subsidies, unemploy-mentbenefits,conservationpro-grams, disaster payments andotherprograms.

 An IBD analysisfound that the

richest 1% of Americans, in fact,receive roughly $10 billion each yearin federal checks.

Outgoing Sen. Tom Coburn,R-Okla., whoexposed these vastpayment programs available totherich,said“thisreverseRobinHood-style of wealth distribu-tionis an intentionaleffortto getall Americans bought into a sys-tem where everyone appears to benefit.”

TheWhiteHousenormallyre-leases the Historical Tables sec-tionof thebudget — wherethesedirect payment numbersare de-tailed — along with the rest of the budget documents. Butwhile Obama released the mainparts of his 2015 budget lastweek, he delayed the release of this little-noticed section untilthisweek.

The Historical Tables also ex-pose as false Obama’s promisethat ObamaCare would rein infederalhealthcare spending.

Obama, in fact, adds a newspending category to the budget— called“health insurance assis-tance” — which will total $456 billionthrough 2019,with annu-al spending levels topping $100 billionin theyears afterthat.

What’s more, overall federalhealth spending in 2019 will benearly twice as high as it was in2008, and will account for 30%of all federal outlays (up from25%in2008).

 Another overlooked item inObama’s budget: Heexpects im-migration reform to cost hun-dredsof billions of dollars.

Page 170 of the Summary Ta- bles,releasedlast week, includesa newentitlementspendingcate-gorycalled “allowancesfor immi-gration reform.” Over the nextdecade,Obama puts $298billioninto this category, with annualcosts hitting$56 billiona yearby 2024, and rising. (This does notincludepossiblehigher tax reve-nue and economic growth fromimmigrationreform.)

BudgetCuts HarderThis massive shift in federal

spending toward direct pay-mentstoindividuals notonly bal-loonsthe size ofthe federal gov-ernment, it makes cutting the budget all the harder, since any meaningful spending reductionswill invariably mean cutting  back on some of these check-writingprograms.

The Congressional Budget Of-fice figures that, by 2038, Medi-care and Social Security alonewilleatup42%ofthebudget.

The explosive growth in thesedirect-paymentprogramsis alsosqueezing traditional govern-ment functions, suchas nationaldefense, which Obama wants tosharply cut. His budget calls forPentagonspendingto drop from$623 billion in 2015 to $570 bil-lionin2017.

Stocks End Well Off Lows

1Stocks were spooked by weak Chi-nese exports, but pared most of the

day’s losses. The Nasdaq and the S&P500 ended fractionally lower. Draggeddown by Boeing BA, the Dow lost 0.2%.

 Volume dropped across the board. The10-year Treasury eased 1 basis point to2.78%.MoreonB2

Ukraine Military Testing Itself

2Ukraine’s defense ministry said it’stestingits readinessafterRussiansre-

portedly seized a missile facility inCrimea.News reportersin Crimea wereaccosted by pro-Russians. Crimea plansa March 16 referendum on joining Rus-sia.Moscow warnedof far-right trouble-makersas protesters brokeinto a TVsta-tion inthe easternUkrainecity ofLugan-sk. Sec’y of State John Kerry ducked anofferto resumetalks inRussia.

Search Continues For Plane

3China, U.S. and 8 other nations ex-panded a search for Malaysia Air’s

Boeing BA 777that disappearedon itsway toBeijingSat.No debriswasfound. Sepa-rately, Norwegian Air said it doesn’t ex-pect long delivery delays for its 787Dreamliners after cracks were found inthe wings Fri. On Sat. a Japan Airlines787landedabruptlywhen engineoil pres-sure fell. Boeing said it still expects tomeet’14 guidance. Sharesfell 2%.

Chinese Mobile Gaming Soars

4Mobilegamingsalesshotup247%in’13, with a 94% leap expected this

 year. Chinese Internets such as BaiduBIDU

and Qihoo 360QIHU have spent heavily onattracting and monetizing mobile users— largely with onlinegames.Those prof-

it-squeezing efforts appear to be paying offinthe world’sNo.1 marketfortheIn-ternetandcellphone.Moreonthispage

China Data Harm Oil, Copper

5Oilfutures fell 1.4%in NewYork fol-lowingweekenddatashowingChina

exportsplunged 18%in Feb.vs.a yearear-lier. Weak inflation data added to wor-ries about the world’s No. 2 economy.Copper futures dropped 1.7%, suffering theirbiggest 2-sessionloss in 28 months.But natural gas futures rose 0.7%. Fu-tures for silver slipped 0.1%, while goldrallied0.2%.

Alexion Raises ’14 Guidance

6The biotech reached a deal with the

French gov’t forSoliris, itssole mar-keted drug. The ruling will reimburseprior shipments of theatypical hemolyt-ic uremic syndrome drug as well as newprescriptions. AlexionALXN raised its full- year sales guidance to $2.15 bil-$2.17 biland its EPS to $4.37-$4.47. Analysts ex-pect $2.08 bil and $4.08 respectively.Sharesjumped7%.Moreonthispage

Netflix No. 1 Video Streamer

7Google’sGOOG YouTube lost its crownto NetflixNFLX as the top online video

service forwatchingTV showsand mov-ies, saidRBC Capital Markets. Itssurvey of more than1,000U.S. Internet users inFeb. showed 44% used Netflix, vs. 43%for YouTube. It was the 1st time NetflixhasbeatenYouTubein10RBCconsumersurveys since May ’11. Netflix shares fellnearly2%. Googledippeda fraction.

Snowden Defends NSA Leaks

8Would he do it again? “Absolutely,”answered Edward Snowden, the fu-

gitive ex-NSA contractor, when askedabout hisrevelations of U.S.surveillanceof communications. Snowden spokefromRussiavia a videofeedto the South by Southwest festival in Austin, Texas.He says it’s up to individuals and techcompanies to protectagainst gov’t intru-sions.“Encryption doeswork,” hesaid.

McDonald’s Feb. Sales Sag

9Same-store sales for McDonald’sMCD

fell 0.3%, a little worse than expect-ed. The largest fast-food chain said U.S.comp sales fell1.4%, European sales im-proved 0.6%, and Asia-Pacific, Mideastand Africa lost 2.6%. McDonald’s blamed badweatherin partfor itsU.S. re-sults. But CEO Don Thompson saidMcD’sneedsa bettermenu.

United Natural Beats, Upbeat

10United NaturalFoodsUNFI Q2 reve-nue rose 14% to a better-than-ex-

pected$1.65 bil,as traditional supermar-kets buy healthier fare to compete withorganicgrocersWholeFoodsWFMandoth-ers. EPSrose22%to 56cents,in line. Thegrocer slightly raised its full-year profitandrevenue targets. Sharesrose 3% late.

IBD’S TOP 10 Baidu, Qihoo BetsOn Mobile Gaming

Starting To Pay Off274% China Revenue Gain

Chinese Nets’ spendinghas hurt bottom lines;Apple a big ‘app’ winner

BY AM Y REEVES

IN V E S T O R' S B U S IN E S S D A ILY

 AlexionPharmaceuticals sharesrose sharply Monday after the biotech raised its 2014 profitandrevenueguidanceonareim- bursementdeal withFrance.

The company said it had con-cluded discussions with theFrench government regarding reimbursement for its solemar-keteddrug, Soliris,as a treatmentfor a rare disease called atypicalhemolytic uremic syndrome,along with its older indicationforparoxysmalnocturnalhemo-globinuria.The decision will re-imburse past Soliris shipmentsas wellas newprescriptions.

While Soliris was approved intheEU back in2007, drugreim- bursementis a country-by-coun-try process of negotiation that

cantake years.Soliris is a partic-ularchallenge because, given itsmarketis tiny,AlexionALXNcharg-esahighpricetomakeaprofit—upward of $400,000 a year intheU.S.

 As a result of this new agree-ment, Alexion added $150 mil-lion to its salesguidance forthis year, now in the range of $2.15 billion to $2.17 billion. It alsohiked its EPS range by 67 cents,now $4.37 to $4.47, though itadded that 37 cents of that willcomein Q1alonedueto the backpayments on pastshipments.

Last year, Alexion made $3.08ashareon$1.55billioninsales.

 Alexion is No. 8 in the latestIBD 50, with a highest-possibleIBD Composite Rating of 99. Ithit a record 185.43 on Feb. 25, butretreated withthe larger bio-tech correctioninthe pastweek.

The stock rose 7% to 180 onMonday.

Individual PaymentsSwell Under ObamaCheck-writing outlaysup 29% in U.S. budget,

 but poor’s share falling 

Chinese M obile GamingAs share of China onlinegaming revenue

Source: iResearch Global

0

10

20

30%

’17e’16e’15e’14e’13

Government Just Writing Checks

0

20

40

60

80%

’14e’10’052000’95’90’85’80’75’70’65’60’55’501945

Entitlement, welfare and other transfer payments willtop 70% of federal spending, squeezing more traditionalgovernment functions

Direct payments to individualsas share of total outlays

Source: Office of Management and Budget Fiscal year ends Sept. 30

FY 2014e:

70.4%

FY:

THEBIG PICTURECurrent outlook:Confirmed uptrend

Downvolumeeases sting. B2

S&P500INDEX1877.17-0.87(0.0%)

Highfinishafterearly 0.6%drop

DOWJONESIND.16,418.68-34.04(-0.2%)

Boeing, IBMlead blue chips south

NYSEVOL. (MIL)2,966-530(-15.2%)

Losers top winners by about 5-4 ratio

NASDAQ4334.45-1.77(0.0%)

Choppy comebackerasesmostof loss

NASDAQ VOL.(MIL)2,075-35(-1.6%)

 Above-avg. volumeremainsthe trend

10-YEART-NOTE2.78%-0.01(-0.4%)

China’s export divenudges yieldhigher

EURO1.3877+0.0004 (0.0%)

Little action asdollar holds steady 

REUTERSCRB FUT.306.00-1.19(-0.4%)

Copper, oil,grainsfall; goldedges up

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VOL. 30, NO. 233   W W W . I N V E S T O R S . C O M   TUESDAY, MARCH 11, 2014  $2.00

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INTERNET

Facebook Q1 ads seen strongThe social network’s ad pricing traction that started in Q4 is con-tinuing this quarter and “is likely sustainable for longer than ourprior estimates had assumed,” ac-

cordingto UBS.The analyst raisedhis price target on FacebookFB

stockto90from72,whilemaintain-ing his buy rating. Reasons for theoptimism include improved quali-ty of advertisersand increased fre-quency of higher ad formats, in-cluding mobile app ads and a re-port from Ogilvy & Mather thatshowed a dip in organic pagereach from 12% in Oct. to 6% inFeb.Shares rose3.2% to 72.03.

EBay rejects Icahn nomineesThe online marketplace rejected 2nominees that activist investorCarl Icahn, who wants to spin off the company’s PayPal online pay-ments business, nominated to its board. EBay EBAY called on share-holders to vote against the nomi-nees at the company’s upcoming annual meeting. No date has beenset yet, but it’sexpected to be heldaround mid-April.In a preliminary proxystatementfiledwiththeSECon Mon., eBay nominated 4 cur-rent board members for re-elec-tion.EBaysharesfell1.4%to58.22.

TO THE POINT 

COMPANY INDEX

FEATURE CALENDAR

Israel shows seized rocketsPM Benjamin Netanyahu vieweddozens of rockets bound for theGaza Strip that were nabbed lastweek and used the opportunity towarn the int’l community of the“deep involvement in terrorism” by Iran, from which the weaponsare alleged to have originated.Iran’s new leadership has been been engaging the int’lcommunity over reducing its nuclear capabili-ties in exchange for reduced eco-

nomicsanctions.

TEL AVIV: Yair Ramati,head oftheIsraelMissileDefenseOrganiza-tion,seemedopentoexpandinghisnation’santi-missileumbrellatoJordanandEgypt,Reutersreported.

PEDESTRIANSBOARDa train at Union Station in LosAngeles. Ameri-cans are riding buses, trains and subways in greater numbers than any timesincethesuburbsbegantoboom,withnearly10.7billiontripsin2013,the highest number since1956, according to a studyreleasedMonday.

Actavis ...........................   B6Alexion ...................   A1, B6Amazon.com ........   A3 , B10

Apple Inc ................   A1, A2Arkansas Bes t ................   B6Artisan Ptns Asset Mgt .. B7Ballard Power Systems .B1Bristol–Myers Squibb ... A4C hina Mobil e .................   B5Chipotle Mexican Grill.A10Cisco ...............................   B5eBay Inc ......................   B10Eli Lilly & Co ..................   A4Facebook .A5, A10, B10Fuelcel l Energy ...............   B1Google .................   B3, B10Heartland Express .........   B6Lennar ...........................   A5Lorillard ..........................   B9Merck ............................   A4Netflix .............................   A3

Novartis .........................   A4NVR .................................   A5Old Dominion Frt Lns ....   B6

Perrigo ........................   A10Pfizer .............................   A4Plug Power .....................   B1Pri ce li ne .com ..............   B10Qihoo 360 Tech .......   A1, B6RetailMeNot ...................   B7Reynolds American .......   B9Saia .................................   B6Southwest Airlines ......   A10Spi ri t A ir li nes ................   B6Tableau Software ..........   B3Taylor Morrison Home ... B7Thor Industries ................   B1Tiffany ...........................   A3VMware ........................   A10Wal-Mart ........................   B1Xilinx ..............................   B5Yelp ................................   A3

CONTENTS

ECONOMY

NATION

Gov’t employment seenfallingThe total number of federal, stateand local gov’t employees fell by 115,733,or 0.5%, tojustover22 milfrom March ’11-March ’12,accord-ing to a Census Bureau report re-leased Thu. The biggest drop wasatthe federallevel, which declined2.2% to 2.8 mil. The number of state employees dipped 0.5%to 5.3mil. Thenumberof local gov’t em-ployees was roughly flat at 14 mil.Of the 16.2 mil state and local em-ployees, most (8.8 mil) worked ineducation, followed by hospitals (1mil)andpoliceforces(0.9mil).

A HIV shot could replace pillsDaily pills like Gilead’sGILD Truvadacan cut the risk of getting HIV by upto 90%,depending onhow faith-fullyuserstakethe pill daily.Thereis still a margin of error if the userskips a pill. Researchers at Glaxo-SmithKlineGSKaretestinganexperi-mental shot on monkeys thatleaves them protected for 10weeks. Researchers at UCLA say the drug is promising and recom-mends human testing of the drug.The medication is similar to drugsalready on the market and a mid-stage trial is testing the shots as atreatment,not a vaccine.

00 Liars maybe easier tospot by legaleagleswith anartificial intelli-gencecomputersystem being developedjointlybyUniv. ofEssex-

ColchesterandtheCenterforMind/BrainSciencesin Italy.The AIsystem usesstylometry,whichcountshow oftencertainwordsthatindicatedeception,such as “tothebestof myknowledge,”areused.They’retesting the system.

00  InU.S. living rooms, morethan4of10peoplehave“assignedseats,”ona couchor chairwheretheyexpecttoalwaysbeabletosit,accordingto asurveyby Swedishfurnituremaker Ikea.Other find-ings:62%claimtocontroltheTV remotecontrol. Some 74%ofmensaytheycontroltheremoteand52%ofwomen.Nowordonwhattheirsignificant othersthink.

00  If your cellphone is runningoutofjuice,justtakeawalk.Re-searchers at Georgia Techhavecreateda devicecomposedof fourdiscsmade of copper,polymer,goldandacryliclayeredontopof oneanother.Motiongetsthe cop-perdisc rotating, passingthe posi-tivechargespastthe plasticandintothegolddiscandcausingacurrent. It cangenerate electricity aslongasthecopperdiscturns.

WORLD

AFTER THE CLOSE

TECHNOLOGY

Analyst: Fire Apple’s CEOTimCook, CEOof AppleAAPL, isfac-ingcalls tobe cannedby GlobalEq-uities Research analyst TripChowdhry,who lamented whathesees as the Cupertino, Calif.-basedtech giant’s lack of innovationsince the ’11 death of co-founderand CEO Steve Jobs. While Appleshares are down 25% since Sept.’12,theS&P500isup27%andNas-daqisup36%duringthesameperi-od, he said. Chowdhry also calledfor CFO Peter Oppenheimer, whois steppingdownin Sept.,to be re-placed.Sharesrose 0.1%to 530.92.

PERSO NAL CARE

Herbalife defends businessThe nutritional supplement com-

pany stood by its direct-sellermodel as Bill Ackman’s Pershing Square Capital again attackedHerbalifeHLF, this time in a N.Y.Times article, and continued topush for regulators to investigatethecompany.Ackmanhasbeentry-ing for over a year to prove thatHerbalife is a pyramid scheme, aclaimthecompanyhasdeniedmul-tiple times. The company is accus-ing Ackman of trying to manipu-latethe stock as a wayto cover forhis$1 bilshort onHerbalife.Herb-alife is under investigation inChina for its business model.Sharesrose2.2%to66.16.

AUTOMOBILES

GM forms recall probe teamTop U.S. automaker General Mo-torsGM hired Anton Valukas, aformer Justice Dept. examinerwho headed the investigation of Lehman Bros.’ collapse in ’08, toheadits internal-external probere-lated to an ignition switch failurethat’sbeentiedtoatleast13deaths.Theflawledtoarecallof1.6milve-hicles. Valukas and GM GeneralCounsel Michael Milliken willhead the investigative team, withattorneys from law firm King &Spalding participating,the compa-nysaid.Sharesfell1.6%to37.09.

IN BRIEFUnited RentalsURI shares rose3.8%to 91.82after Citigroupreiter-ateditsoverweightratingontheindustrialequipment rental compa-ny’ssenior notes.UnitedRentalsannouncedits acquisitionof Na-tionalPumpfor$780milon Sun.

CHEMICALS

Auto batteries lift FMC spinoffSharesof diversified manufacturerFMCFMC surged 6.7% to a new highof83.10after itsaidit willsplit into2 publicly traded companies. Thesplitwillbedoneviatax-freedistri-

 butionof sharesto existingholdersand isexpectedto bedoneby early ’15.FMCMinerals,to be headed by a new CEO, will include its alkalichemicals unit and lithium busi-ness, whose customers includeelectric-car battery makers. NewFMC, to be led by current CEOPierre Brondeau, will consist of itsagricultural and health-and-nutri-tionunits.

U.S. chemicals giants mergingIna pairingseenstrengtheningtheU.S.in chemicals, N.Y.-based Min-erals TechnologiesMTX is buying peer Amcol Int’lACO for about $1.7 bil.After it raisedan earlier-reject-ed bid,MineralsTechnologieswona bidding war vs. France’s Imeryswith a $4.75 a share offer. “Thistransaction will bring together theglobal leaders . . .” in key specialty chemicals, “creating an even morerobust U.S.-based internationalminerals supplier,” Minerals Techsaid in a statement. Its shares rose6.4% to 57.91, while Amcol fell 2%to45.71.

Amex Tables ......................   B6Big Picture .........................   B2Block Trades ......................   B11Commodity Futures .........   B12Com pa ny I ndex .................   A2C re dit Mar ke t ...................   B13Div iden ds N ew s .................   A11Ear ni ngs N ew s .................   A11Eco no mi c N ew s ..................   A2Editorials ..........................   A12Exchange Traded Funds ....   A8Gen er al M ar ke t ...................   B2

IB D Bi g C ap 2 0 .................   A10IBD Sector Leaders ...............   B1IPO Leaders .........................   B7I ncom e I nves to r .................   B9Internet & Technology .......   A4Investor's Corner ................   B3

Issues & Insights ............   A12Leaders & Success .............   A3Leading Market Index .......   B8Low Price Stocks .............   A14Mutual Funds & ETFs .........   A6New America ......................   A5New Highs & Lows .............   B1New Highs List Analysis ......   B1New Issues .........................   A5O ption Ta ble s ...................   B14REITs .................................   A11R es ea rch Tab les ..................   B3S to ck S po tl ight ..................

  B5Timesaver Tables ................   B8To The Point ......................   A2Top Sector Stocks ..............   B8Volume Changes ................   B11World News Briefs .............   A2Wo rld S to ck s ....................   B10

MoreData On Investors.comDueto spaceconstraints, somedataoccasionallydon’tappear intheprint edition,but they canbefound online at Investors.com. Goto http://news.investors.com/ otheribddata.aspx.

Homeownership attitudes upFannie Mae’s Feb. housing survey found a 7-point rise in the share of people saying prices will go up inthe next 12 months, and a 3-point bumpto 68% in the shareof people

saying it is a good time to buy ahome. Those saying it is a goodtimetosellfell4pointsto34%.

00 TheFed willkeep tapering its bondbuys, saidPhiladelphiaFedPres.CharlesPlosser andChicagoFedPres.CharlesEvans.Plosseralsosaid winterweatherhas stunt-edjobgrowth.

00 Retail investors embraced riskevenmoreinFeb.,accordingtoTD Ameritrade’sIMX survey,whichmeasures howmuch riskindividu-alsaretaking.At5.74,theIMXhitarecordforthe3rdstraightmonth.

Millennials struggle financially A survey by the Financial Industry Regulatory Authority found that

many people ages 18-26 haveprob-lematicfinancialbehaviorandcon-cernsabouttheirhabits.Some43%of millennials used costlier, non- bank borrowing in the last 5 years vs.21% ofbaby boomers.

00 Deflation is a risk inEurope,saidthe IMF’schief economist.TheECBhasexpressedconcernaboutlowinflationbutwon’tconcede deflation isa risk.Callsforthecentralbankto wieldaggres-siveQEhaveincreased.

Puerto Rico readies debt saleThe islandis issuing$3 bil inits 1stsale since being downgraded to junk status. It needs the financing to balance its budget. Underwrit-

ers expect yields of about 8.625%,lower than where some PuertoRicodebt hastraded recently.

BIS: forward guidance dubiousThe Bank of Int’l Settlements saidcentral banks risk creating finan-cial stability by keeping interestrates low for long periods. Signal-ling those intentions via “forwardguidance” isn’t always effectiveandmaybedisruptive,BISsaid.

00 China devalued its currency bythe mostin a yearand a halfasthegov’t continuesto tryto con- vincetradersthat theyuan won’tappreciateforever.

CO M ING U P TUESDAY

00  NFIB small-business optimismindexfor Feb.,7:30a.m.ET.

00 JobOpenings andTurnoversurveyforJan.,10a.m.ET (fore-cast:4 milopenings).

THURSDAY

00 Retail sales forFeb.,8:30 a.m.ET(forecast:0.2%).

00 Producer price index forFeb.,8:30a.m. ET(forecast:0.2%).

Big Cap 20 .............................................   TuesdayEarnings Calendar ..................................   MondayIBD 50 ................................   Monday,WednesdayIndustry Snapshot .................................   Monday

Inside Real Estate ......................................   FridayIPO Leaders ............................   Tuesday, ThursdayFunds&Persona l Finance .....................   MondayManaging For Success ..........................   MondayNew America Archive ...............................   FridayTop/Bottom200 CompositeStocks ......   ThursdayWeekly Top 10 .......................................   MondayWeeklyS tocksOntheMove ..................   MondayYour Weekly Review ................................   Friday

Medicare Part D cuts droppedTheWhiteHousehas withdrawnaplan to loosen requirementson in-surers for covering medicationsunderMedicare, following intensecriticism from Congress. Underthe proposed plan, which sur-prisedtheindustrywhenitwasun- veiledin Jan., insurers wouldhave beensubject to strictrules mandat-ingcoverage for drugs in 3 classes,

downfrom6 classesof drugs now.The plan also would have allowedmore pharmacies to participate inPart D andauthorized federaloffi-cialstotakepartinnegotiationsbe-tweeninsurersand pharmacies.

00 Fannie Maeand FreddieMacwouldreturn$163.8bilmoreto theTreasurythroughfiscalyear’24if theirbailoutterms remainin place,inadditiontothe more than$200 bilthey havealready paidin divi-dends,according to OMBprojec-tions.Theyreceived$187. 5 bilin bailout fundsfrom ’08-11.

00 Port Authority of N.Y.and N.J.records weresubpoenaed byfeder-alprosecutorsaspartofaprobeintopotentialconflictsofinterestinvolvingChairmanDavid Sam-

son.N.J. Gov.Chris Christiefiredaidesafter revelations’13 laneclosures mayhave beenpolitical.

CA CH OH FL GA TX NJ VA SF WA IA CO

TRENDS & INNOVATIONS

Japan GD P

Japan’s annualized Q4 GDP growth was reviseddown to 0.7%, its slowest pace since PrimeMinister Shinzo Abe took office. Consumersand companies have upped spending ahead ofan April sales tax hike but economists expect adrop-off afterward.Sources: Japan’s Cabinet Office, Datastream

Japan Grow th Flags, Raising Abe Doubt s   Annualized Annualized Annualized

VITAL SIGNS Consumer spending Private nonresident ial const ruct ion

-15

-10

-5

0

5

10%

’13’12’11’10’09’08

Q4:0.7%

-8

-4

0

4

8%

’13’12’11’10’09’08

Q4:1.6%

-36

-18

0

18

36%

’13’12’11’10’09’08

Q4:3.1%

POWERSECUREPOWR, a utilitiesgrid systemsmaker,saidQ4 EPSwasflatat13cents,beatingby4cents.Salesrose57%to$73.6mil,aboveviews. Sharesjumped12.1%to25.90.

SPIRIT AIRLINESSAVE, a budgetcarrier, saidFeb. loadfactorrose3pointsto86.2%.Trafficrose25.5%; capacity grew21.3%.

PERFECT WORLDPWRD, a Chineseonlinegamedeveloper,saidQ4EPSrose31%to 55cents,beat-ingby12 cents.Revenuegrew39%to$151milvs.viewsfor$142.1mil.Sharesrose2.6%to23.99.

BUSINESS BRIEFS

Investor’s Business Daily (ISSN 10 61-28 90 ) is publishedM onday-Friday, except legal holidays and G ood Friday. Pe-riodicals postage paid at Los Angeles, CA and other mail-ing offices. U.S. subscription rate (postage paid): 2 year$549 , 1 year $329, 6 month $2 0 5, plus any sales tax. For-eign rates on request. READERS:  To subscribe or obtaindelivery or other information, contact 8 0 0 -8 31-252 5(310 -448 -660 0 outside U.S.) or www.investors.com. AD-VERTISERS:  All advertising published in Investor’s Busi-ness Daily is subject to the app licable rate card, availableat 310 -448 -670 0 . REPRINTS:  For reprints, please go toIBDreprints.com.  PO STMASTER:   Send address changesto Investor’s Business Daily, P.O . Box 92 0 8 9, Los Ange-les, CA 90 0 0 9-20 8 9.

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TIP OF THE DAY:  Findthe stocksyouneedwiththe IBDScreenCenter.The address youneed isinvestors.com/stockresearch

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4 NEVERSTOP LEARNING: Goback toschoolor readbooks.Gettraining and acquire skills.

6 LEARN TO ANALYZE DETAILS:Getall thefacts, allthe input.Learn from yourmistakes.5 BE PERSISTENT ANDWORK HARD: Successis a marathon,not asprint.Nevergive up.

Houston On JourneysInstead of trying to make your life perfect, give

 yourself the freedom to make it an adventure,and go ever upward.Drew Houston, executive

Mart in On ToilWork is the true elixir of life. The busiest manis the happiest man. Theodore Martin, poet

Hook On WisdomIdealism, alas, does not protect one from ignorance,dogmatism and foolishness.Sidney Hook, philosopher

Huxley On AbsolutesFacts do not cease to exist because they are ignored. Aldous Huxley, author 

WISDOM TO LIVE BY

Holl On DifficultyI choose work that is hard to pull off. And it’s scary how things can gowrong. But if there’s no risk involved,it’s not challenging. A good ideawill survive any process.Steven Holl, architect

BY JOAN MARANS DIM

I N VEST O R 'S BU SI N ESS D AI L Y

 A bluebox tied witha whiteribbonis synonymous with Tiffany — thestoriedemporium fromwhichdaz-zling jewels are bought and an ac-claimed novella and Oscar-win-ningmovie wrought.

 As for the true saga of Tiffany &Co.TIF, it’s as compelling as any  jewel,novellaor movie — andongo-ing. Tiffany employs more than9,900, with 290 stores in 25 coun-tries,accordingto MarkAaron, thecompany’s vice presidentof inves-torrelations.

Tiffany & Co.’s flagship store onthecornerofNewYork’sFifthAve-nueand57th Streetopened in1940and it secures 12% of the compa-ny’s global sales, according to theNewYorkTimes.

Meanwhile, Tiffany shares have been on a 430% stock market runsince2009.

Behind the sparkle is a story of struggle, discovery, risk takinganda passion for quality, luxury andcraftsmanship.All froma visionary with the celebrated last name —CharlesLewisTiffany.

Tiffany (1812-1902) founded this

glittering jewelry and silver store— now177 years old — while help-ingshapetheAmericanidealoflux-ury.

Glittering Retail

“Charles Tiffany fundamentally graspedthe ideathatshoppingandretailing should be an entertaining experience,” Linda Buckley, vicepresidentof global relationsfor Tif-fany & Co., told IBD. “It should befun, make youfeelbetterand fulfilla shopper’s dream. Tiffany sawhisstoreasawaytoaddbeautytoaper-son’s life, and he had an innatesense that in 19th century Americaa growing affluent class could bereached with high-quality prod-ucts.”

Tiffany’s journey, like so many  brilliant 19th century entrepre-neurs— thinkDr. Scholl, AdolphusBusch, Oscar Mayer — was not anovernight success. He required apersistent ambition.

The son of a textile manufactur-er, Charles was born and raised inKillingly,in the northeastcorner of Connecticut. He wasted little timegetting a good feel formoney, run-ningthefamilymillstorebyage15.

Buckley notes that as Tiffany grew up in Killingly, he was closeto Bridgeport, Conn., the home base of P.T.Barnum, the showmanand businessman celebrated forhiscolorfulmarketing.

“Undoubtedly, Barnum influ-

enced Tiffany,” said Buckley, “andweclearly seeit in howTiffanyde- velopedhis ownset of promotionalskills andits effecton keybusiness ventures.”

Twocenturies later, he’sKilling-ly’smost celebratedresident.

“We still rave about him,” Mari-lyn Labbe, executive director of theKillinglyHistorical& Genealog-ical Society, told IBD.

 As heturned 25,Tiffanylooked tothebigtime:NewYorkCity.

Hesaw a chanceto make seriousmoney with a store, so he bor-rowed $1,000 — worth $25,000

now — from his father and, withfriendEben Young,founded Tiffa-ny & Young. The shop sold statio-neryand fancygoodssuch as jewel-ry, silverware, bronze curiositiesfrom India, Chinese porcelain andthelatest Frenchaccessories.

Onopeningday—Sept.14,1837—salestotaledless than$5.

Tiffany & Young limped along 

from there. Then came 1841, withmarriage to Harriet Young, sisterof his partner, Eben Young, on theway to six children. Also that yearcame a third business partner, J.L.Ellis.

With a new name — Tiffany, Young & Ellis — Tiffany perfectedthe marketing tips he’d picked upfromBarnum.

Take the way Tiffany's profitedfrom France’s 1848 revolution andthe fall of King Louis Philippe.Buckleynotes howaristocratswhohad benefited from the king sud-denly ran for their lives, neededcash, looked to load their dia-monds and crashed the Conti-nent’s jewelry market.

Tiffany pounced. He persuadedhis partners to pour profit fromtheir fledgling business into dia-monds — marking thefirstappear-ance ofmajorgemstones on a massscaleinAmerica.

Tiffany&Co.wentontosellthosediamonds at great profit, rocketing thefirm beyondsolvency.

Further PR glory came when thepress noted the carat-topping dealand crowned Charles Tiffany theKingof Diamonds.

“That move established CharlesTiffany,” Buckleymaintains.

MiningFor More

In1851,Tiffanysawgoldinthesil- vermarket.

Tomeet Victoriansociety’srising 

demand for the bright metal, heteamedwithNew YorksilversmithJohn Moore and established thecompany’sdesign andsilver manu-facturingheritage.

Tiffany instructed Moore tomake the silverware on par withEnglish sterling — 92.5%silverand7.5% basemetals — a standard that America eventuallyadopted.

Thatdecade,Tiffany’sfirm shoneasone ofthe world’s leadingjewel-ersandsilversmiths.

 Also in 1851, Tiffany opened ashop in Paris, opening the door toestablishing an international mar-

ket, accordingto the KillinglyHis-toricalSociety’sfiles.

 Young and Ellis retired in 1853.Tiffany purchased theirshares andrenamed thefirmTiffany& Co.

Tiffany’s pursuit of excellencecontinued.

Knowing in 1858 that a telegraphcable was winding its way underthe Atlantic Ocean, he bought 20miles of extra metal that thefinan-cier Cyrus Field was tossing in thetrashheap.

Tiffany cutitinto4-inch brass forpaperweights,canes, umbrellahan-dles and watch charms. A sensa-tion resulted on the daythe souve-nirs went on sale. The clamoring crowds, vying fora slice of history,hadtobe controlled bypolice.

Still another Tiffany PR coupcameat 1867’s ParisExposition.

“InAmerica duringthe mid-19thcentury, said Buckley, “Tiffany es-tablished dominance in the silvermarket, butthe store wasas yetlit-tle known in Europe. But at theParis World’s Fair, Tiffany chal-lengedtheEuropeansandreceivedthe grand prize for silver, the firsttime an American design housewassohonoredbyaforeignjury.”

Rock-SolidMoveThencame another smartmove.In 1877 one ofthe world’slargest

 yellow diamonds was discoveredin South Africa. Tiffany leaptagain, buying the 287.42-caratstonefor $18,000,which translatesto$385,000today.

 Acclaimed gemologist GeorgeKunz supervised the stonecutting ofthe Tiffany Diamondinto a cush-ion-shapedgem witha finalweightof128.4caratsandanunprecedent-ed 82facets. “It sparkles as iflit by aninner flame,” saidBuckley.

 Audrey Hepburn famously worethe yellow gem in publicity stillsforthe 1961film“Breakfastat Tiffa-ny’s.”

Buckley estimates the stone hasthe height and width of a quarter.It’s on display at Tiffany’s flagshipstorein Manhattan.

Such Tiffany brilliance drewglo- bal plaudits. His company servedasthe royaljeweler tothe crownedheadsofEurope,aswellastheOtto-man emperor, the czar of RussiaandtheshahofIran.

Tiffany died atage 90, leaving anestateworth$35 million — wortha billion today. Louis Tiffany,Charles’ second sonand heirto the business,became thefirm’s firstof-ficialdesigndirector in1902,imme-diately followinghis father’s death.

Louis establishedthe Tiffany Ar-tisticJewelry unit,where preciousobjects weremanufactured.

 Art historian Antonio Masi saidof the son: “Louis Comfort Tiffany was an internationally acclaimed American designer, a leader of the Art Nouveau Movement, who wasrevered for his whimsical jewelry and stained-glass creations.Though gone more than 80 years,his artistry moves and uplifts usstill.”

ThatstylecamefromCharlesTif-fany’s brand, of whom Buckle y said:“Weknowwhenweseeablue box tied with a white bow that thesame care and quality goes intothatbox,no matterwhat’sin it.”

7 FOCUS YOUR TIMEAND MONEY: Don’tlet other people orthingsdistract you.

2 DECIDE UPONYOUR TRUEDREAMSAND GOALS:Writedown your specific goals anddevelop a planto reach them.

LEADERS & SUCCESS

7 Advertising is challenging.“The effectiveness of tradi-tional marketing tactics isdeclining at a rate fasterthan executives can figure

out how to best leverage all of thenew media opportunities outthere,” said Mark DiMassimo,CEO of DiMassimo Goldstein, anagencythat helpscompaniesgrow,and author of the e-book“Digital@Speed.”

Tipsonnavigatingtheadfront:00 Act today. Theway DiMassimosees it, your ideal marketing plancan take eons to launch; thenthere’sthepresent.

His advice: “What can I do rightnowto move thingsforward whilethe loftier plan is in motion in the background? Stop waiting for allthefacts or buyinginto the perfectprocessmyth.If you’renotreadytotake on thenewestdigital tools be-cause you’re not ready to do a lotwith them, that doesn’t mean youcan’tdo a littleandtest itout.Don’tput off small things today because youcan’tdo biggerthings.”00 Love what you sell.   Finding aproduct orservice youarepassion-ateaboutisalotofthebattle.

“Your job is not to seem like the

most sane, balanced and detachedindividual in the world,” DiMassi-mo said. “You should be on firewith this thing— whateverit is.”00 Take on rivals. Name them, anddifferentiate yourself in your mar-keting. Don’t be shy in stating why  you’re better, DiMassimosays.00 Understand reviews. They play a critical role, underscores ItamarSimonson, co-author of “Absolute Value: What Really InfluencesCustomers in the Age of (Nearly)Perfect Information.”

“Find out from your customerswhich information sources they use,” he said. “Reviews make con-cepts such as branding, loyalty andpositioning less relevant andshould change the way you thinkabout marketing.”00 Engage your customers. Invite

themtoreviewyourproductorser- vice and make it easy by setting upapageforyourcompanyonthehotopinionsiteYelpYELP.

“Having anongoingstreamofau-thentic reviews from people whousedyourproduct will protectyoufrom the occasional bad reviewand will ensure that new custom-ersalwaysfindreviewsthatarerel-evant, helpful and recent,” Simon-sonsaid.00 Learn from industry Davids.“They’ve taken on the Goliaths of their industries and come out ontop,”DiMassimo said.

He cites   NetflixNFLX, which tookonBlockbuster andwon.

Simonson notes that challenger brands have opportunities due tolowbarriersofentry.

“Consumers are less hesitant totry a product from a lesser-known brand when they can find positivereviews and other content aboutit,” he said. “So companies thatoffer a high-qualityproduct candowell even without heavy invest-mentin advertisingor branding.”

He points to Roku, which rosefrom virtuallyunknown to captur-ing significant market share in thestreaming set-top box market.

Roku 3 hasalmost 6,000reviews —withoverhalfgivingit fivestars —on Amazon.comAMZN.00 Diversify. The traditionalthink-ingin marketingis that consumersassociate your brand with certainskills,Simonson says, andthey willhave a hard time accepting prod-uctsthatdon’tfitthisperception.

But he contends that when con-sumers evaluateeachproductsepa-rately, based on how it’s being re- viewed by experts and users, youcan spread more easily into newcategories if you offera top-quality product.

“Sticking to the exact expecta-tions that your customers havefromyour brand should belessof aconcernwhentheybasetheirdeci-sionsonreviews,”hesaid.Michael Mink

Charles Tiffany’s Jewels

Set A Sparkling StandardPersevere: He turned a gem of a plan into an empire

9 DEALAND COMMUNICATEWITH PEOPLE EFFECTIVELY:Noperson is an island. Learn to understandand motivate others.

IBD’S 10 SECRETS TO SUCCESSInvestor’s Business Daily has spent years analyzing leaders and suc-cessful people in all walks of life. Most have 10 traits that, whencombined, can turn dreams into reality. Each day, we highlight one.

3

TAKE ACTION:Goals arenothing without action. Don’t beafraidto getstarted. Just do it.

8 DON’T BE AFRAID TO INNOVATE; BE DIFFERENT:Following the herd isa sure way tomediocrity.

© 2014 Investor’s Business Daily, Inc. Investor’s Business Daily, IBD,CAN SLIM and corresponding logos are registered trademarks owned byInvestor’s Business Daily, Inc.

 Join Scott O’Neil for anAll-Day Investing Workshop

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1 HOWYOU THINK IS EVERYTHING: Always be positive. Thinksuccess, notfailure.Bewareof a negative environment.

10 BE HONEST ANDDEPENDABLE;TAKE RESPONSIBILITY:Otherwise, Nos. 1-9 won’tmatter.FOCUS YOUR TIME AND MON EY

Click With Marketing 

CharlesTiffanywearinga tophatin the1880s atone of hisstores,whichtodaynumber290in 25countries.

Tiffany's Keys00 Founderof Tiffany& Co.00 Overcame: Weakstart.00 Lesson: Believetheidea.00 “The only thing thatdoesany goodis tojumpina cab and goto Tiffany’s.Calmsmedown rightaway.Thequietnessandthe proud lookof it; noth-ingvery badcouldhappentoyou there.If I could find

a real-lifeplace that’dmake mefeellikeTiffany’s,I’dbuy some furnitureandgive the cat a name,”saidHollyGolightly,played by  Audrey Hepburn in the1961 movie “BreakfastatTiffany’s.”

INVESTOR'S BUSINESS DAILY TUESDAY, MARCH 11, 2014   A 3

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INTERNET & TECHNOLOGY 

Pfizer Breast-Cancer Drug Update Eagerly AwaitedTo Report At April 5 Meeting

Palbociclib is first in classof drugs that could blockthe growth of cancer cells

© 2012 Investor’s Business Daily, Inc. Investor’s Business Daily, IBD and corresponding logos are registered trademarks owned by Investor’s Business Daily. Inc.

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1057 Kingstown Rd. , South Kingstown, RI 02879

BY AM Y REEVES

I N VEST O R 'S BU SI N ESS D A I L Y

The annual meeting of the Ameri-can Association for Cancer Re-search, which convenes in SanDiegoon April5, is viewedby mostdrug-industry watchers as a sec-ond-tier medical conference. Butphysicians and investors will bewatching closely this year, as Pfiz-er will report on a drug that coulddramatically extend the livesof pa-tientswithbreastcancer.

Pfizer’sPFE palbociclib is the firstin a new class of cancer drugscalled CDK 4/6 inhibitors. These block a proteininvolvedin celldivi-sion, and thus theoretically couldstopthegrowthofcancercells.

ThoughEliLilly LLYandNovartis-NVS

also have CDK inhibitors in theworks, the class hasn’t gotten asmuch attentionas some other newdevelopmentsin oncology,notably the PD-1 inhibitors being devel-oped by Bristol-Myers SquibbBMY

andMerckMRK.But some on Wall Street started

paying attention in December2012, when Pfizer reported inter-im data from its phase two trial of palbo in metastatic breast cancer.The median progression-free sur- vival rate among patients taking palbo with Novartis’ Femara was

26.1 months — a whopping 18.6months better than the controlgroup, which was taking Femaraalone.

Noother approvedbreast-cancerdrug hasshowna progression-freesurvivalbenefit— meaningthe can-cer has not advanced — anywherenear that length. Pfizer promptly launched a phase three trial a fewmonths later.

Sincethis wasjustaninterimanal- ysis, it raised the question: Was ittoo good to be true? Next month’sreportwillbethefirstsignofanan-swer.

OnFeb.3, Pfizer reported thatinthe final analysis of the phase twotrial,palbometitsprimaryPFSend-point.But patients,doctors andin- vestors will have to wait until nextmonth’s meeting to find out justhowbigthebenefitwas.It’salsoex-pected to givea first look at trendsin overallsurvival — the gold stan-dardincancercare.

Reading TheTea Leaves

In the absence of numbers, WallStreethas taken toreading Pfizer’senthusiasmlevel.

“While no data was disclosedtoday,we note that PFEstated thatthey ‘are delighted with the finaldata’ and that they’ll‘discuss theseresultswiththeFDAandotherreg-ulatory authorities to determinenext steps, with the goal of bring-ing a much-needed new medicineto new patients,’ ” ISI Group ana-lyst Mark Schoenebaum wrote inanemailtoclientsonFeb.3.

“Recall that PFE has previously 

said that if the data warranted it,PFE would discuss with the FDAthe potential to file based on thesePhase 2 data via accelerated ap-proval,”hewrote.

 Yet trial results have misled be-fore. The most infamous recentcase wasRoche’sRHHBY Avastin. TheFDA added breast cancer to Avas-tin’slist ofindicationsin 2008aftera study showed a survival benefit, but also demanded more studiestosolidifythecase.

Subsequenttrialsfailedto repro-ducetheresult,soin2010theagen-cy controversially removed breastcancerfromthedrug’slabel.

Bears have pointed out multiplepotential pitfalls with the Pfizertrial. With just 165 patients in the

cohort, itwasnota very large sam-ple. Also, it was was an open-labeltrial, meaning that patients in thecontrol armknew theywere in thecontrol arm and weren’t getting a

placebo.Whiletheplaceboeffectis unlike-

lyto seriouslyaffect a diseaseas se-rious as metastatic breast cancer,some have expressed concern thatpatients inthe control groupmighthave been encouraged to drop outso theycould seekother treatment.

Open-LabelIssuePalbo bulls such as Schoe-

nebaum, however, point out thatthePFSbenefitintheinterimanaly-sisis sohugeit couldshrinksignifi-cantly and still be better than any-

thingelseonthemarket.Schoenebaumalso saysthe open-

labelissue probably isn’t a bigdeal,since patients who dropped out of the control arm were forbidden to jointhe palboarm.

Schoenebaum is modeling asmuch as $9 billion in annual palbosalesby2020,whichwouldmakeitone of the best-selling cancerdrugsever. Butmost otheranalystsare modeling a bit under $3 billioninthatyear.

One big question is whetherpalbo can, in fact, be approved onphasetwodata,whichwoulddeter-mine whether it could launch in2015or2016.

“Our physician experts are very enthusiasticabout palbociclib,and believethere is a high likelihood of achieving OS (overall survival) inPhase II and success in the PhaseIII,” wrote Cowen analyst SteveScala in a Feb. 27 report. “Howev-er, they believe FDA will not ap-prove palbociclib based on PhaseIIdataand,at best,the drug might

get approved on interim Phase IIIresults.”

But Leerink analyst SeamusFernandez says that his survey of opinion leaderssuggests an overallsurvival benefit would probably leadtoearlyapproval.

“KOLs (key opinion leaders) citethe extremely quick accrual of theongoing Phase III study (expectedtobe fullyaccrued by mid-2014)astestament to the fact that therewould be a ‘public outcry’ for ap-proval based on a significant OS benefit,”he wrotein a Feb.3 note.

Pfizer is gettinga lotof attention forthe update it’sslated to givesoononthe firstof a newclass of cancerdrugs calledCDK4/6 inhibitors.

 After a brief stint as a smartphone maker,Google plans to sell its Motorola Mobilityunit. Google failed to make Motorola thetop U.S. handset maker, but Google has afirm hold on U.S. smartphone users via Android, Google Maps and other content.

Google Reaches Most Handset UsersDATA BUS

U.S. smartphone market share Content accessed by smartphoneFrom provider, in JanuaryBy operating system

Source: comScore (comscore.com)

HTC5.4%

Motorola6.4%

LG6.9%

Samsung26.7%

Apple41.6%

Symbian 0.2%

Microsoft3.2%

BlackBerry 3.1%   Apple41.6%

Android51.7%

0

20

40

60

80

100%

AppleMicrosoftAOLAmazonYahooFacebookGoogle

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BY VANCE CARIAGA

I N VEST O R 'S BU SI N ESS D A I L Y

While many U.S. homebuilders began to rebound a couple of yearsagoalongwiththebroaderhousing market, Taylor Morrison Homewasalittlelatetotheparty.

Taylor MorrisonTHMC  builds sin-gle-family homes, condos, high-riseandmaster-plannedcommuni-tiesin theU.S. and Canada. A goodchunk of its business comes from Arizona, California and Florida —marketsthatwereamongthehard-esthitduringthehousingcrisis.

BecausesomeofthemarketsTay-lorMorrisonservestook solong torecover — including Phoenix,Southern California, Tampa andOrlando,Fla. — the company’sownfinancialperformance tooka whiletorebound, too.

It wasn’t until the fourth quarterof2012 thatTaylor Morrison final-lybegantoproducesustainedreve-

nuegrowth.It took evenlongerforthe company to get its earningsgrowthbackontrack.

In contrast, leadingpubliclytrad-edbuilderssuchas LennarLEN, D.R.HortonDHI and NVR NVR have beenproducing robust financial gainssincethe firstquarter of2012.

Financial Pick-Me-Up

Thegood news forTaylor Morri-sonis that itis nowfiringonallcyl-inders financially. The company has delivered five straightquartersof 43%-or-better sales growth.Earnings have risen at least 17%overthelastthreequarters.

Meanwhile,TaylorMorrisoncon-tinues to raise its 2014 expecta-tions amid growing optimism overseveralkeymarkets.

In a recent report, Zacks Equity Research noted thatTaylor Morri-son’s full-year estimate rose threetimes over the span of 30 days,“and there has been no downwardrevision over the same timeframe.”

Part of the optimism over this

 year’s growth potential centers onFlorida, where Taylor Morrisonhas a variety of new communitiescomingtomarket.

One project — the Overlook atHamlin in the Orlando area — re-cently opened with four productlines on Lake Hancock. Homeswill range from1,600to more than5,100 square feet, with plannedprices that start around $250,000andrangetomorethan$1million.

Taylor Morrison bought proper-ty in the area in 2011, when Orlan-do’s housing market was still get-

ting hammered by declining homesalesandprices.

“We purchased the initial380-lotproject when few builders in theOrlando area were purchasing smalldraw positions,”ChiefExecu-tiveSherylPalmersaidonaQ4con-ferencecallwith analysts.

Early last year Taylor Morrisonadded another260 lots to thecom-munity. The Overlook at Hamlinopened for pre-sales in Decemberandhadsold30unitsthroughJanu-ary.

Palmer also voiced optimism

about Florida’s market for activeadult communities.

“We have seen a strongpresencefromthisbuyergroupastheseasonkicked off late last year,” she said.“We built many different types of communities and... have dozensof others set for this year that we be-lievewillcontributetoanothersuc-cessful year.”

Meanwhile, Taylor Morrison’s business should get an additional boost from Texas, which weath-eredthe housing crisisin relatively good shape and is home to one of thenation’sstrongestjobandhous-ingmarkets.

Taylor Morrison’s operation inthe Lone Star State includes com-munitiesin thethrivingAustinandHouston metroareas.

Followinga homebuildingtour of Houston and Dallas earlier this year,analystMichaelRehautof JP-Morgan noted that “all of the pub-lic and private builders we metwith conveyed highly favorablemarket outlooks for the upcoming  year, with a leading private devel-oper describing the Houston mar-ketas ‘fullsteamahead.’”

Those outlooks were consistentwith JPMorgan’s Regional Market Analysis,which “pointto bothDal-lasandHoustonasbeingtwoofthestrongest housing markets in thecountry froma fundamentalstand-point,featuringstrong job growth,favorable price-to-income ratios

andlow inventory levels.”Rehaut also noted that Houston’s

 job growth over the last two years,at6.8%,clockedinatmorethandou- ble the national average of 3.2%. Austin’s job growth over the sameperiod was also more than doublethenational average,at 6.6%.

‘Unique’ Advantage

On the Q4 conference call, CEOPalmer said “all of our Texas mar-kets performed well through thefourth quarter, with the averageselling price among some of thehighest inour U.S.market.We be-lieve our positioning has created aunique competitiveadvantage.”

Strength in Texas helped TaylorMorrison deliver its best perfor-mance in years during the fourthquarter. Earnings came in at 72cents a share, excluding specialitems. That was upfrom1 cent theprior year, when the company wasstill privately held, andabove Wall

Streetestimates.Total revenue climbed 43% to

$798.4 billion, beating views. Tay-lorMorrisonalso toppedestimateson homebuilding revenue, unitclosings and homebuilding grossmargin. The average closing pricerose 8.1% year-over-year, whichwasaboveviewsaswell.

“Taylor Morrison’s focus onmove-up and luxury buyers ap-pears to be working, and we be-lieve the company’s pricing poweristhe key reasonforthegross mar-gin beat,” Sterne Agee analyst Jay McCanlessnoted.

For 2014, Taylor Morrison ex-pects its community count to in-crease 25% to 30% and closings toclimb 15% to 20%. Analysts polled by Thomson Reuters look for 2014EPSof$1.96, up38%fromlastyear.Full-year profit is seen rising 15%in2015.

Taylor Morrison’s stock pricetrades near 25. The company’sshares, which went public last April, have risen about 29% sincethe beginningof 2014.

THE NEW AMERICA

RecroPharmaInc REPH/NDQ   3/7 12.0 8.0 –33.3 8.4 5.5 Medical–Biomed/Biotech AegisCapitalCorpCoupons.comInc COUP/NSE 3/7 14.0 16.0 14.3 30.0 87.5 Retail–Internet GoldmanSachs&CoAquinoxPharmaceuticals AQXP/NDQ 3/7 12.0 11.0 –8.3 12.4 13.2 Medical–Biomed/Biotech Jefferies& CoVaronisSystemsInc VRNS/NDQ   2/28 21.0 22.0 4.8 47.5 115.9 CompterSftwr–Database MorganStanley

SemlerScientificInc SMLR/NDQ   2/21 9.5 7.0 –26.3 6.2 –11.6 Medical–Products AegisCapitalCorpInogenInc INGN/NDQ   2/14 18.0 16.0 –11.1 19.5 21.9 Medical–Products JP MorganAmedicaCorp AMDA/NDQ   2/13 10.0 5.8 –42.5 7.3 26.3 Medical–Products JmpSecuritiesInstalledBuildingProd IBP/NSE 2/13 16.0 11.0 –31.3 14.4 30.6 Bldg–Maintenance& Svc DeutscheBankSec

ConcertPharmaceuticals CNCE/NDQ 2/13 16.0 14.0 –12.5 15.0 7.4 Medical–Biomed/Biotech U BS InvestBankFlexionTherapeuticsInc FLXN/NDQ   2/12 14.0 13.0 –7.1 19.2 47.8 Medical–Biomed/Biotech B MO CapMarketsTalmerBancorpClA TLMR/NDQ 2/12 14.5 13.0 –10.3 13.6 4.9 Banks–Midwest   KeefeBruyetteWoodsEaglePharmaceuticals EGRX/NDQ   2/12 16.0 15.0 –6.3 14.9 –0.7 Medical–GenericDrugs PiperJaffray& Co

NephrogenexInc NRX/NDQ   2/11 14.0 12.0 –14.3 11.2 –6.8 Medical–Biomed/Biotech AegisCapital CorpArgosTherapeuticsInc ARGS/NDQ   2/7 15.0 8.0 –46.7 10.9 36.9 Medical–Biomed/Biotech PiperJaffray& CoElevenBiotherapeutics EBIO/NDQ   2/ 6 15.0 10.0 –33.3 15.9 58.9 Medical–Biomed/Biotech CitigroupRevanceTherapeutics RVNC/NDQ 2/6 16.0 16.0 0.0 34.9 117.8 Medical–Biomed/Biotech CowenAndCo

EgaletCorporation EGLT/NDQ 2/6 13.0 12.0 –7.7 18.8 56.9 Medical–Biomed/Biotech   StifelNicolausWeiselLadderCapitalCorpCl A LADR/NSE   2/6 18.0 17.0 –5.6 18.6 9.3 Finance–Mrtg&RelSvc DeutscheBankSecBioceptInc BIOC/NDQ 2/5 12.0 10.0 –16.7 8.3 –17.4 Medical–ResrchEqp/Svc AegisCapitalCorpAuspexPharmaceuticals ASPX/NDQ   2/ 5 12.0 12.0 0.0 29.9 149.3 Medical–Biomed/Biotech   StifelNicolausWeisel

ContinentalBuildingPrd CBPX/NSE   2/5 18.0 14.0 –22.2 20.0 42.6 Bldg–ConstrPrds/Misc CitigroupGenoceaBiosciencesInc GNCA/NDQ   2/ 5 14.0 12.0 –14.3 21.9 82.3 Medical–Biomed/Biotech CitigroupUniqureN.V. QURE/NDQ   2/ 5 15.0 17.0 13.3 15.2 –10.4 Medical–Biomed/Biotech Jefferies& CoTrevenaInc TRVN/NDQ 1/31 7.0 7.0 0.0 9.2 30.9 Medical–Biomed/Biotech BarclaysCapital

Mediwound Ltd   MDWD/NDQ 5,750 14.0– 16.0 338.4 Medical–Biomed/Biotech n.a./ 63 Credit Suisse.Israel. Israeli biopharmaceutical company developing products for the treatment of severe burns, chronic and hard–to–heal wound.

A10 Networks Inc   ATEN/NSE 12,500 13.0– 15.0 885.4 Computer Sftwr–Enterprse n.a./ 91 Morgan Stanley.San Jose, CA. Develops software based advanced application networking solutions for enterprises, service providers and Web giants.

Akebia Therapeutics Inc   AKBA/NDQ 5,635 14.0– 17.0 323.4 Medical–Biomed/Biotech n.a./ 63 Morgan Stanley.Cambridge, MA. Biopharmaceutical company developing therapeutics for the treatment of patients with kidney disease.

Q2 Holdings Inc   QTWO/NSE 8,925 11.0– 13.0 430.5 Computer Sftwr–Financial n.a./ 33 J P Morgan.Austin, TX. Provides secure, cloud–based virtual banking software to regional and community financial institutions.

Amber Road Inc   AMBR/NSE 6,522 10.5– 12.5 311.2 Computer Sftwr–Enterprse n.a./ 91 Stifel Nicolaus Weisel.East Rutherford, NJ. Provider of cloud–based global trade management solutions.

Castlight Health Cl B   CSLT/NSE 12,765 9.0– 11.0 970.6 Computer Sftwr–Medical n.a./ 64 Goldman Sachs & Co.San Francisco, CA. Develops cloud–based software that enables enterprises to manage health care benefit spending and improve quality.

Dipexium Pharma   DPRX/NDQ 2,654 12.0– 14.0 112.4 Medical–Biomed/Biotech n.a./ 63 Oppenheimer & Co Inc.New York, NY. Developing antibiotics for the treatment of patients with mild infections of diabetic foot ulcers.

Galmed Pharmaceuticals   GLMD/NDQ 2,703 12.0– 14.0 112.2 Medical–Biomed/Biotech n.a./ 63 Maxim Group Llc.Israel. Israeli biopharmaceutical company developing drugs for the treatment of liver diseases and cholesterol gallstones.

Diamond S Shipping Grp   DSG/NSE 16,100 14.0– 16.0 790.9 Transportation–Ship 1600/ 43 Jefferies & Co.Greenwich, CT. Provides seaborne transportation of refined petroleum and other products with a fleet of 33 medium range tankers.

Paylocity Holding Corp   PCTY/NDQ 7,037 14.0– 16.0 788.6 Computer Sftwr–Enterprse n.a./ 91 Deutsche Bank Sec.Arlington Heights, IL. Cloud–based provider of payroll and human capital management software solutions for medium–sized companies.

Achaogen Inc   AKAO/NDQ 5,750 12.0– 14.0 231.4 Medical–Biomed/Biotech n.a./ 63 Credit Suisse.S San Francisco, CA. Developing novel anti–bacterials to treat multi–drug resistant gram–negative infections.

Globoforce Group Plc   THNX/NDQ 4,412 16.0– 18.0 483.5 Computer Sftwr–Enterprse n.a./ 91 J P Morgan.Ireland. Provider of cloud–based, social recognition software solutions to large multinational firms.

FacebookFB rose 3% to 72.03 in heavy volumeMonday, hitting a new high. UBS analyst EricSheridan raised hisprice target on thestock to90 from 72.Sheridan saidrecentad deals indi-cate a robust online ad market for Facebook.Reasons for the optimism include improvedquality of advertisers and increased frequency ofhigher ad formats, includingmobile appads.

Offering Offering Current EPS Industry LeadCompany Symbol Date price price % Chg Rtg group underwriter

Taylor Morrison Hometaylormorrison.com

Ticker TMHCShare price Near 2412-month sales $2.32 bil5-year profit growth rate 33%

IBD SmartSelect Corporate Ratings

Composite Rating 96Earnings Per Share 96Relative Price Strength 65Industry Group Rank 26Sales+Profit Margins+ROE CAccumulation-Distribution A-

See Investors.com for more details

Prices Of Recent IPOs

High % Chg % ChgSymbol/ Offer Filing Offer From Current From

Company Exchange Date Price Price Filing Price Offer Industry Group Lead Underwriter

IPO Filings Soon ToBePriced

Symbol/ Shares Estimated Mkt Value P/E Ratios:Company Exchange (000) Price ($Mil) Industry Group Co / Grp Lead Underwriter

Leading New IssuesAFTER MARKET

Rebounding Housing Markets Give Taylor Morrison A Lift

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FireEyeInc FEYE 9/20/13 20.00 80.30 301.5 2 Computer Sftwr-Security Morgan StanleyRelypsaInc RLYP 11/15/13 11.00 42.19 283.6 2 Medical-Biomed/Biotech Morgan Stanley

500.comLtdCl A WBAI 11/22/13 13.00 47.21 263.1 77 Leisure-Gaming/Equip Deutsche Bank SecKindredBiosciences KIN 12/12/13 7.00 24.40 248.6 2 Medical-Ethical Drugs B M O Cap Markets

AcceleronPharma XLRN   9/19/13 15.00 50.14 234.3 2 Medical-Biomed/Biotech CitigroupAratana Therapeutics PETX   6/27/13 6.00 20.02 233.7 4 Medical-Ethical Drugs Stifel Nicolaus Weisel

58.comIncClA WUBA 10/31/13 17.00 52.39 208.2 77 Retai l- Internet Morgan StanleyUltragenyx Pharma RARE   1/31/14 21.00 61.97 195.1 2 Medical-Biomed/Biotech J P Morgan

TA Y LO R MO R R IS O N H O ME C O R P .   S c o t t s d a l e , A r i z o n a

TaylorMorrisonHomehasseena sharpturnaroundinits financialper-formancein recent quartersamid a rebound in severalkey markets.

House M oney

Taylor Morrison Home saw a rapid increase in orders last yearas many of its key markets rebounded. The builder eyes strongearnings growth in coming years.

Sources: Company reports, Thomson Reuters

Home sales closed, in thousands Annual earnings per share

0

1.6

3.2

4.8

6.4

’13’120

1.00

2.00

$3.00

’16e’15e’14e’13

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INVESTOR'S BUSINESS DAILY TUESDAY, MARCH 11, 2014   A 5

8/15/2019 i Bd 20140311

6/45

ETFs Mark Bull Market Birthday 5 Years On Upswing 

Internet, value spinoff, biotech and volatility funds share limelight

BY TRANG H O

F O R I N VEST O R 'S BU SI N ESS D A I L Y

The stock market bull run cele- brates its fifth anniversary thisweek. SPDR S&P 500SPY rocketed181% from its bear-market troughof$67.10asharereachedonMarch9,2009.

PowerShares QQQQQQ, tracking the 100 largestnonfinancial stockson the Nasdaq, vaulted 197%.SPDRDowJones IndustrialAvera-geDIAflew132%.

The smaller the companies, the biggerthe returns. SPDRS&P Mid-Cap 400MDY soared 238%, whileiSharesS&P SmallCap 600IJR blast-ed264%higher.

“It stands as the second-stron-

gest bull market since 1942 at thefive-year point, trailing only the1982-87 bull market,” Randy Fred-erick,managingdirectorof trading andderivativesat theSchwabCen-terfor FinancialResearch,saidin anoteMonday.

The best five-year stretch kickedoff in August 1982 and rallied225%. This time around, the gainswere fueled by the Federal Re-serve’s bond purchasing program,record-lowinterest rates andmas-sive corporate share buybacksplumpingearnings pershare.

“Five years ago (the consumerconfidence index) was at a recordlow level of 25 before bouncing  back to 78 today, while unemploy-

ment was 8.3%, on its way to 10%, before dropping to a recent 6.7%,”Todd Rosenbluth, director of ETFand mutual fund research at S&PCapitalIQ,said inan email.“Mean-while,duringthe fourth quarterof 2013, S&P 500 index earnings pershare have reached a record$28.45.”

The stock market appearsstretched as SPYin early 2013flewpastits October2007 pre-financialcrisis high and now trades 20%abovethat peakon a nominal basis.Butwhenpricedin2007dollars,itsprior high would be valued at$177.40 a share. So on a relative basis, SPY has surpassed its 2007apexbyonly6%.

Foreign developed marketslagged the U.S. in the face of Eu-rope’s debt crisis and Japan’s two-decades-long economic malaise.IShares MSCI EAFE IndexEFA,tracking developed foreign mar-kets, pales in comparison to theU.S.94% gain.

Emerging marketsoutperformed

all global markets early on as theFederalReserve’seasy-moneypro-gram prompted investors to pur-sue more risk in higher-growthmarkets and higher-yielding cur-rencies. But the party ended last year due to a perfect storm of events that included falling com-modity prices, currency devalua-tions,risingtradedeficitsand wor-riesoverthe Fedscalingbackstim-ulus.

Spin-Off ETF Soars Fivefold

GuggenheimSpin-Off CSDmade itsinvestors415% richer fromthe bot-tomofthebearmarketbyinvesting in companies that were broken off from a parent company. Theindextends to have less volatility thanthe S&P 500 and typically holdsmidcap stocks, said Andrew Corn,CEO of E5A Integrated Marketing inNewYork.

He created the underlying indexand launched the ETF in Decem- ber 2006 as Claymore/Clear Spin-

Off ETF, before Guggenheim ac-quired Claymore. Corn said his re-search, using back-tested datagoing back to 2001, showed thatspinoffs outperformthe market.

“Management, with incentivesfully aligned with shareholders, isfreeto runthe companyto their vi-sion,” Corn said in an email. “Thisis without a parent company look-ing over their shoulders or placing priorities, relationships, financing decisions on the subsidiary madeatahigherlevel.”

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MUTUAL FUNDS   & ETFsE X C H A N G E TR A D E D FU N D S

Top ETFs O f Bull M arketReturns since 3/10/09

Source: Morningstar Inc.

Name   Symbol Return

G H S &P 50 0 P ur e V al ue R PV 5 15 .4 6%

ProS Short VIX ST SVXY 472.64

PS Nasdaq Internet PNQI 443.03

GH Spin-Off CSD 415.12FirstTr DJ Internet FDN 406.68

FirstTr NA Biotech FBT 406.05

SPDR S&P Retail XRT 405.71

PSs Dyn Leisure & Ent PEJ 403.51

PS Dyn Pharma PJP 394.34

Fi rs tTr Con su me r Di sc FX D 38 5. 47

Smaller-cap stock funds crowd the ranks oftop-performing diversified stock fundsduring the latest bull market, which marksits fifth anniversary this week. Legg MasonOpportunity’s recent holdings includedDelta Air lines and United Continental.Source: Morningstar Inc.

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AllianzGI Ultra Micro Cap Instl AUMIX 4.97%59.79%42.32%Sm-cap grwthAegis Value AVALX 0.85 35.24 42.06 Sm-cap valB uf fal o Em er gi ng O pp or B UF OX 3 .4 6 6 1.7 0 4 2. 06 S m- ca p gr wthHodges Small Cap HDPSX 4.18 45.56 41.87 Sm-cap blndSouthernSun Small Cap Inv SSSFX 3.27 41.98 41.75 Sm-cap blndHuber Capital Small Cap Val HUSIX -0.67 34.26 41.48 Sm-cap valHotchkis & Wiley SC Value I HWSIX 2.67 46.34 40.70 Sm-cap val

5-yearFunds Symbol YTD 2013 avg Style

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Pimco Fundmntl IndxPlus AR PIXAX 2.27%34.34%40.49%Lrg-cap blndMatthew 25 MXXVX 0.39 38.69 39.79 Lrg-cap grwthL egg Mason Opport un it y C L MO PX 6.26 66. 82 39. 41 Mid-cap valWalth au sen Smal l Cap Va l WSC VX 1 .48 35. 23 39. 36 Sm- cap va lPimco SC StocksPlus AR Inst PSCSX 3.91 37.45 39.21 Sm-cap blndHotchkis & Wiley Mid-Cap Val HWMIX 3.79 42.55 38.97 Mid-cap valS&P 500 2.02 32.39 25.05

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A6   TUESDAY, MARCH 11, 2014 INVESTORS.COM

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3 6 Mos 4 Wk Ne tPerformance % Asset NAVRating Fund Chg Value Chg

3 6 Mos 4 Wk Ne tPerformance % Asset NAVRating Fund Chg Value

 Chg

3 6 Mos 4 Wk Ne tPerformance % Asset NAVRating Fund Chg Value

 Chg

36 Mos 4 Wk Ne tPerformance % Asset NAVRating Fund Chg

 Value Chg

3 6 Mo s 4 Wk NetPerformance % Asset NAVRating Fund

  Chg Value Chg

3 6 Mo s 4 Wk Ne tPerformance % Asset NAVRating Fund

  Chg Value Chg

3 6 Mos 4 Wk Ne tPerformance % Asset NAVRating Fund Chg Value Chg

3 6 Mos 4 Wk Ne tPerformance % Asset NAVRating Fund Chg Value Chg

3 6 Mos 4 Wk Ne tPerformance % Asset NAVRating Fund Chg Value Chg

36 M os 4 Wk Ne tPerformance % Asset NAVRating Fund Chg Value Chg

A   MidGrowInst +7 19.18n +.06

A   MidGrowP +7 18.90n +.05

A+ SkylnSpEq +7 39.86n –.04A   SpecialEq +9 90.95n –.25

A+  TimsqSmGrI +7 18.06n +.00

A+ TimsqSmGrPr +7 17.76n +.00

B Yacktmn +3 23. 47n +.06

B– YacktmnFoc +3 25.02n +.08

Manning & Napier Funds

$ 13.6 bil 800–466–3863

E Wor ldOppA +5 9 .25n +.06

Marshall Funds

$ 5.2 bil 800–580–3863

A– BMOSmGrInv + 9 24.07n –.07

A   BMOSmGrIr +9 24.52n –.07

Marsico Funds

$ 2.9 bil 888–860–8686

A   FlexCapital +6 18.64n –.03

A– Fo cu s + 7 2 1.3 4n –.08

A– G rowt h +7 2 3. 05n –.05

Mass Mutl Instl

$ 831 mil 800–542–6767

A   SmlCpGrEqS +9 19.94n –.05

Mass Mutl Prem

$ 5.1 bil 800–542–6767

A   DiscplnGrwS +7 12.31n +.00

Mass Mutl Select

$ 15.2 bil 800–542–6767

A+  BlueChipGrL +7 17.48n +.01

A   BlueChipGrS +8 17.73n +.02

A–  DiversValS +6 13.79n +.05

A+ G rwOppS +8 12 .03n +.01

A+  SmlCpGrEqZ +9 20.03n –.04

A+ † Matthew25  +6 30.58n +.15

Matthews Asia

$ 13.2 bil 800–789–2742

D– AsGr&IncInv +4 18.91n +.11

E ChinaInv +4 21. 87n +.24

D– Div id Inv +4 15 .30n +.12

D–  PacTigerInv +5 25.15n +.38

E   † MergerFund    +116.14n   +.00

Meridian Funds

$ 3.1 bil 800–446–6662

C+ G rowth +7 37. 47n +.07A– V al ue + 6 4 4. 44n +.06

Metro West

$ 32.4 bil 800–241–4671

D– HiYieldBdM +2 10.39n +.00

E L ow D ur B d 0 8. 82n +.00

E L ow Du r Bd I 0 8 .8 2n +.00

D– TotRetBdI 0 10.68n –.02

D– TotRetBdM 0 10.68n –.02

MFS Funds A

$ 61.1 bil 800–637–2929

D – B ond +1 13 .9 3 – .0 3

D ConsrvAlloc +3 14.75 +.01

A–  CoreEquity +7 27.80 +.05

A   G rowth +7 68. 03 –.01

C GrowthAlloc +5 18.34 +.06

C Int lNwDs +5 28 . 52 +.24

B– IntlVal +6 34. 34 +.33

D IntlDivrsA +5 16.45 +.16

A– MAInvTr +6 28 . 31 +.07

A–  MAInvGrSk +6 23.29 +.10

A– MidCapVal +7 19.88 +.03D+ ModAlloc +4 16.71 +.03

D MuniHi Inc +2 7 .70 +.00

A– Research +6 37. 59 +. 09

C– TotalRet +4 17. 80 +. 02

B Util + 4 21.48 +.04

B+ V al ue +6 33 .4 9 + .0 9

MFS Funds C

$ 9.4 bil 800–637–2929

A   G rowt h +7 5 7. 95n –.01

MFS Funds I

$ 24.2 bil 800–637–2929

A   G rowt h +7 7 1. 07n –.01

C IntlNwDs +5 29. 30n +.24

A–  MAInvGrSk +6 23.79n +.10

A– MassInvTr +6 27.72n +.08

A– Research +6 38. 32n +.09

D– RsrchIntl +5 18.53n +.21

A– V al ue + 6 3 3. 67n +.10

MFS Instl Funds

$ 6.7 bil 800–637–2929D I nt lE q + 5 2 2. 31n +.20

Morgan Stan A

$ 1.8 bil 800–869–6397

A+  FocGrowth +7 55.29 –.24

A+  MltiCpOpps +9 35.74 –.17

Morgan Stan I

$ 649 mil 800–869–6397

A+  FocGrowth +7 57.83n –.24

Morgan Stan Ins

$ 20.5 bil 800–548–7786

A+ C ap Gr I + 7 4 1. 11n –.15

A+ CapG rP +7 40. 27 –.15

D I nt lE q I + 7 1 7. 24n +.18

D I nt lE qP +7 1 7. 02 + .1 8

B+ MdCpGrP +10 46.90 –.20

B+ MidCapGrI +10 49.04n –.22

A+ SmCoGrI +10 21.17n +.00

A+ SmCoGrP +10 19.39 +.00

Munder A

$ 2.3 bil 800–438–5789

B MidCoreGr +8 43.03 +.11Munder Y

$ 4.5 bil 800–239–3334

B+ MidCoreGr +8 44.27n +.11

A   VerctSCVal +9 32.35n +.10

Nationwide Funds Instl

$ 6.2 bil 800–848–0920

D – I nt l Id x + 6 8. 69n +.09

B+ S&P500Idx +6 14.41n +.02

A– Smal l Idx +9 16 .22n –.01

Nationwide Funds Service

$ 4.3 bil 800–848–0920

C– InvDstMdAg +5 11.58n +.04

Natixis Funds

$ 1.8 bil 800–225–5478

A– USMltCapEqA + 7 34.52 +.09

Neubg Brm Instl

$ 11.0 bil 800–628–2583

D + E qt In c + 5 1 2. 48n +.03

D– HiIncBond +2 9.53n –.01

A– MidGrwth +8 14.98n –.02A+  MltcapOpp +6 15.42n +.03

Neubg Brm Inv

$ 14.4 bil 800–877–9700

A– F oc us + 6 2 8. 39n +.08

B G enes is + 6 4 1. 48n +.17

B+ Genes is I +6 61. 55n +.25

A– MidGrwth +8 14.74n –.03

Neubg Brm Tr

$ 4.7 bil 800–877–9700

B G enes is + 6 6 4. 15n +.26

Nicholas Group

$ 4.0 bil 800–227–5987

A+ N icholas +6 66 .20n –.38

NorthCoastAsstMgmt

$ 96 mil 800–274–5448

C CANSLIMSel + 6 14.09n +.04

Northern

$ 42.6 bil 800–595–9111

E BondIndex 0 10. 55n –.01

E EmMktsEqInd +4 10.88n +.11

D– FixedIncome +1 10.24n –.01D– GlbRlEstIdx +5 9.45n +.03

D+ HiYldFxInc +2 7.61n –.01

D– IntlEq Idx +6 12. 55n +.13

D– IntmdTaxEx +1 10.46n –.01

E MltMgrEmMk +4 18.56n +.19

E MltMgrIntEq +5 10.99n +.10

B SmCapVal +9 21 .22n +.06

A+  SoSunSmInv +9 31.22n +.15

B+  StockIndex +6 23.30n +.04

Nuveen Cl A

$ 12.4 bil 800–257–8787

C+ HiYldMuni +2 16.18 +.01

A   MidCapGrOpp +10 48.54 –.13

Nuveen Cl C

$ 3.2 bil 800–257–8787

C+ HiYldMuni +2 16.16n +.00

Nuveen Cl I

$ 20.6 bil 800–257–8787

B– HiYldMuniBd +2 16.18n +.01

E IntmDurMun +1 9.11n +.00

E LtdTrmMuni +1 11.08n +.00

A   MidCapGrOpp +10 54.13n –.14

C– RealEstate +5 21.68n –.14

Nuveen Cl R

$ 1.6 bil 800–257–8787

D NWQLgVal +6 22.78n +.10

Oakmark I

$ 70.7 bil 800–625–6275

C– Equity&Inc +5 33.17n +.08

B– G lobSel +6 16 .72n +.14

C+ G loba l + 6 3 0. 79n +.22

C+  Intl + 6 26.83n +.33

D Int lSmCap +6 17. 72n +.15

A+ Oakmark +6 64 .70n +.28

A+ S el ec t + 8 4 1. 81n +.15

Old Westbury

$ 26.2 bil 800–607–2200

E G loba lO pp 0 7 .9 0n +.00

C– GlobalSmall +6 17.54n +.10

E LgCapStrat +7 12.76n +.06

Oppenheimer A

$ 87.1 bil 800–225–5677

D+ ActiveAlloc +5 12.13 +.05

D – A ll oc A +4 1 7. 76 + .0 5

C+ AMTFrMuni +3 6.77 +.00B– CapApprec +8 62.33 –.10

D Cap Income +2 9 .81 +.00

E DevelopMkt +5 36.96 +.31

A+ Discovery +9 83.33 –.44

A   DisMidGrw +9 18.79 –.08

C+ Equity +7 12. 70 +.01

C+ EquityInc +6 31.92 +.07

E GlblStrtInc +1 4.16 +.00

B GlobOpport +10 44.20 –.08

C– G lobal +6 80. 55 +.49

C– HiYldMuni +3 6.97 –.01

D – I nc x 0 1 0.8 3 – .0 8

E I n tl B ond +1 6 .0 9 + .0 1

C+ IntlGrowth +7 39.04 +.43

A–  IntlSmCo +6 34 .24 +. 21

D IntlDivers +5 14.95 +.15

A–  MainStreet +5 49.51 +.06

A– MainStSC +7 32.00 +.03

C+ RisingDivs +7 20.07 +.03

E RochLtdMuni +2 14.31 +.00

Oppenheimer I

$ 3.3 bil 800–225–5677

C– S el 40 I + 2 1 2. 44n –.01

Oppenheimer Y

$ 37.2 bil 800–225–5677

E DevelopMkts +5 36.54n +.32

A+ Discovery +9 90.20n –.48

C– G loba l + 6 8 0. 63n +.49

E I nt lB ond +1 6 .0 9n +.01

C+ I nt lG r + 7 3 8. 87n +.43

A   Int lSmCo +6 33 .98n +.20

A–  MainStreet +5 49.21n +.06

A– MainStSmCp +8 33.66n +.03

B– RisingDivs +7 20.59n +.04

Oppenhmr C&M

$ 17.1 bil 800–225–5677

E Dev lpMktC +5 35. 18n +.30

A+  DiscoveryC +9 68.12n –.36

E G lb lS tr tInc +1 4 .15n +.00

C– HiYldMuni +3 6.95n –.01

Oppenhmr Roch

$ 10.1 bil 800–225–5677

E L tdTrmNYA +3 3 .16 +.01

D – M un iA +4 1 5. 12 + .0 2

Optimum Instl

$ 4.7 bil 800–914–0278

E F ix ed I nc + 1 9 .5 4n +.00

A   LrgCpGrow +7 17.79n +.01

Osterweis Capital

$ 6.8 bil 866–236–0050

D– S trat Inc +1 12 .04n +.00

—P—Q —R—Pace Funds P

$ 6.6 bil 800–647–1568

A–  SmMdCoGr +8 22.65n +.01

Parnassus

$ 7.0 bil 800–999–3505

A– EquityIncI +5 37.01n +.06

A   Parnassus +7 47.53n –.04

Pax World

$ 2.4 bil 800–767–1729

D B al an ce +4 2 4. 86n +.06

Payden Funds

$ 4.0 bil 800–572–9336

A   EqIncInvCl +6 13.26n +.00

Permanent Port

$ 9.7 bil 800–531–5142

E Port fol io +4 45. 01n +.12

PIMCO A

$ 42.7 bil 800–426–0107

D– A llAsset +3 12. 29 +. 03

E AllAsstAuth +2 10.06 +.03

E Low Du r 0 1 0. 40 + .0 0

E RealReturn 0 11 .22 –.03

A+ StocksPlRet +6 10.37 +.02

A   StocksPLUS +6 9.55 +.02

E TotalRet rn 0 10 .85 –.01

PIMCO Admin

$ 34.3 bil 800–927–4648

E S ho rt T er m 0 9 .8 7n +.00

E TotalRetrn 0 10. 85n –.01

PIMCO C

$ 20.8 bil 800–426–0107

E A llAsset +3 12. 23n +.03

E AllAsstAuth +2 10.05n +.03

A+   FdmntlIndxPlARFd +66.44n   +.01

E RealReturn 0 11. 22n –.03

E TotalRetrn 0 10. 85n –.01PIMCO D

$ 31.0 bil 800–426–0107

C In come +1 1 2. 47n –.02

E Lo w Du r 0 1 0.4 0n +.00

E RealReturn 0 11. 22n –.03

A+   SmCapStksPLARStr +99.94n   –.01

A   StksPLAbsolRet +610.25n   +.02

E TotalRetrn 0 10. 85n –.01

E Unconstrnd 0 11.21n +.00

PIMCO Inst l

$ 291 bil 800–927–4648

D– A llAsset +3 12 .28n +.03

E AllAsstAuth +2 10.06n +.03

E CommodRR +7 6 .03n +.04

E C omPL US St rt gy Fd +511.18n   +.05

CredtAbsolRtrnFd +110.65n   +.00

D– DiverseInc +2 11.65n +.00

E EmgLocBdFd + 3 9.27n +.05

E EmgMktCorpBd +111.33n   –.02

E EmgMktCurr +1 10.10n +.04D– EmrgMktBd +2 10.76n –.01

E Fl oa t In c + 1 8. 85n +.02

E ForBondUnhg +2 10.32n +.04

D FrgnBdHedg +1 10.70n –.01

A+  FundIdxPlTr +7 6.97n +.01

D HighYie ld +2 9 . 75n +.0