Clark Schultz

Clark Schultz is a financial writer and content editor who works for Great Sky Inc. His background include website development , content editing, HTML programming - as well as writing detailed content for financial sites. Content citations include Wall Street Journal, New York Times, Barron's, and numerous other financial sites. Created the websites MoneyRates.com and Savings-Investor.com. Interests include economics, SEO, tennis, and coaching youth sports.

[clarkschultz]

Clark Schultz is a Content Writer/Editor based out of St. Louis, Missouri. He works for Great Sky Inc. Check for latest posts at Clark Schultz’s blog

[clarkschultz]

Wal-Mart's Killer Search Algorithm

The power of search: Wal-Mart indicates a new search engine designed to direct traffic on its website has helped to boost sales. The retailing giant spent a tidy sum to develop "Polaris" on the theory that an algorithm with a deeper semantic understanding of search queries would help drive conversions and avert frustrated customers from exiting the Walmart.com site for a rival's site. With online product views up 20%, it looks the algorithm refresh was well worth the investment.

Next on tap: A mainstream off-site Wal-Mart search engine to drive shoppers?

Via Seeking Alpha and Reuters

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The Buzz on Coffee, Beer, Soda, Smoothies, Energy Drinks, and H2O

What's all the fuss about beverages? It goes back to the Irish proverb that reads good as drink is, it ends in thirst. Around and around it goes. So to keep tabs a bit, here's the rundown:

Beer

Anheuser-Busch buys Grupo Modelo for the Corona brand, but is now too large with a market share north of 50% in the U.S. This means the company may have to divest the iconic Busch brand or Natural Light, which just doesn't seem right. It also means SABMiller won't be merging with A-B after all, but hey it's still partners with Molson Coors which it gives it great-tasting Grolsch and Killian's Irish Red and their 0.1% market share. Meanwhile, thousands of microbreweries bash each other into near oblivion with intense competition - despite having a clearly superior product. The big get bigger.

Coffee

Starbucks isn't satisfied being a $40B company and is dabbling in nearly every form of beverage out there. For instance, today it launched a Very Berry Hibiscus refresher drink replete with blackberries and coffee. If it can be crushed and caffeine added, Starbucks will try it. Customers in Seattle, Atlanta, and Chicago are even the test guinea pigs to see if baristas selling beer and wine freaks out regulars. A company called Green Mountain Coffee Roasters claims to have reinvented the coffee industry with a single cup Keurig brewer system, but expiring patents and a 75% drop in its stock tips off they may be wrong. As for just a cup of joe, McDonald's and Dunkin' Donuts are making their mark with premium blends that defy their rep for junk food. Who knew?

Soda

Mayor Bloomberg got a little cranky about obesity in NYC and proposed banning large-sized drinks, creating quite a ruckus. While the movement to regulate soda intake is DOA on Main Street, it has generated interest on Wall Street. PepsiCo is getting into yogurt, Coca-Cola is promoting its Vitamin Water, and even Campbell Soup is going organic by buying Bolthouse Foods for its carrot juice. But it's all a fad...32-ounce Mountain Dews won't be upstaged by carrot juice any day soon.

Energy Drinks

Everybody wants an energy drink product now that the industry kicked up sales of over $30B. To that end, Coca-Cola might be buying Monster Beverage because the rest of the entries sound just plain toxic (Full Throttle, Sobe No Fear, Amp, Rip It) in a confusing industry. Juggernaut Red Bull probably will stay independent, although it's a bit of a surprise to learn that its HQ is in Austria, not Las Vegas. And what exactly does 1000mg of Taurine do to the body anyway?

Smoothies

Who has the time to pull a blender and mash up a bunch of fruit and ice when you can buy a smoothie at every McDonald's, Burger King, and Starbucks in town? Still if convenience isn't an issue, pure-plays such as Smoothie King or Jamba Juice tend to be bit more on the authentically healthy side.

Water

Yes, water is pretty much the same. Tap or bottled, two parts Hydrogren and one part Oxygen does the trick.

Sources:

Starbucks.com Bloomberg.com Bevnet.com Anheuser-Busch Inbev Seeking Alpha

Posted via email from Clark Schultz

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Tesla Model S: The Make-or-Break EV Bet

The first reviews for the Tesla (TSLA) Model S start to pour in, largely on the positive side. The electric vehicle boasts impressive acceleration, a smooth ride, and a massive infotainment system chock full of delights, according to the writers. With demand for the model uncertain, and its success seen as an all-or-nothing watershed moment for the company, early buzz on the car is viewed as critical. (Reviews: Engadget, Motor Trend, Wired, CNET)

via Seeking Alpha

Posted via email from Clark Schultz

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What's Anheuser-Busch InBev up to?

Something interesting is brewing at Anheuser-Busch InBev, the question though is what exactly could it be? The global beer giant has filed trademark applications covering the codes of airports across the country, including LAX, DFW, and JFK to name a few. Earlier this year, the global brewer also filed for trademarks on area codes. Are beer names going to be much more succinct in the future?

Via Seeking Alpha and the U.S. Patent and Trademark Office

Posted via email from Clark Schultz

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The Cult of Disney Strikes Again

Disney just cleared the $1.4B mark for The Avengers with sequels and merchandise still on tap - making that $4B price tag for Marvel Entertainment a steal. You can't stop the Mouse House, you can only hope to contain it.

  Via SeekingAlpha.com and BoxOfficeMojo.com

  Posted via email from Clark Schultz

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Keynesian Economics Meets Darth Vader

Zero Hedge stumbles on the answer as to how to boost U.S. GDP beyond 3% with a massive project to build the Imperial Death Star. A project that inflates the debt beyond all comprehension and incorporates extremely hostile foreign policy is sure to draw praise from both parties.

Cost = $852 quadrillion give or take

Cool factor = Unlimited

    Original post from Zero Hedge

Posted via email from Clark Schultz

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Epic Fail: Portfolio Managers Can't Beat Benchmarks (again)

Random number generation? A striking report from S&P tips off that not only did 84% of actively managed funds fail to beat their benchmarks in 2011's tricky market, but less than 50% of portfolio managers outperformed even over a five year tracking period. Even the best of the lot struggle, with only 12.2% of the large-cap funds ranked in the top quartile five years ago managing to maintain a spot in the upper 25% five years later. "There's no evidence of persistence of performance beyond what would be randomly expected," says Buckingham Asset's Larry Swedroe.

via Barron's and Seeking Alpha

  Posted via email from Clark Schultz

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Pinterest Sets the Internet World on Fire

Internet hotshot Pinterest blows past Twitter and closes in on Bing in a ranking of the websites that produces the most referral traffic. The visually striking manner of presenting user photos prompted Facebook's Mark Zuckerberg to "like" the Friendsheet app that aims to produce the same results on the social networking site. (Related: Why Google should buy Pinterest)

via Seeking Alpha Market Currents

Posted via email from Clark Schultz

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Internet Wars: St. Louis vs. Kansas City

Kansas City appears set to easily beat St. Louis in one important category - fastest Internet speeds. The city was selected by Google as a site for an experimental broadband network infrastructure using fiber optic communication, with a launch date set for sometime in 2012.

According to Google:

We plan to build an ultra high-speed broadband network in Kansas City on both sides of the river. Our network will deliver Internet speeds of up to 1 gigabit (or 1,000 megabits) per second. That's more than 100 times faster than what most Americans have access to today

So Kansas City will soon be flying around the Internet at the same speeds currently seen in Asia and Europe, while most of the rest of the U.S. (including St. Louis) trods along.

From the BBC:

The average broadband internet speed across the US is 12.84 Mbps, according to Netindex.com. That makes the US 31st in the world (the UK is 32nd with 12.4 Mbps speed).

Posted via email from Clark Schultz

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Income Redux: Dividend Stocks vs. Savings Accounts

A quick peek at the widening yield spread between a basket of diversified high-yielding multinational stocks and the best savings account rates:

  Dividend Stock Portfolio (4.04% yield)

  Southern Copper (SCCO) 6.98%

Eli Lilly (LLY) 4.96%

Total (TOT) 4.90%

Merck (MRK) 4.48%

Kimberly-Clark (KMB) 4.14%

Waste Management (WM) 4.03%

Vodafone (VOD) 3.80%

Intel (INTC) 3.37%

Chevron (CVX) 3.12%

Coca-Cola (KO) 2.94%

McDonald's (MCD) 2.90%

Microsoft (MSFT) 2.75%

  Source: Seekingalpha.com

    Savings Portfolio (1.27% yield)

  Savings Account 1.01%

Money Market Account 0.90%

1-year CD 1.15%

2-year CD 1.25%

3-year CD 1.48%

5-year CD 1.85%

  Source: MoneyRates.com, RateBrain.com, SavingsAccounts.com, Interest.com

      Posted via email from Clark Schultz

[clarkschultz]

Facebook vs. Mickey D's

The #Facebook #IPO buzz: At the $100B market cap price tag, do you take Mickey D's ($MCD) or $FB? 2.8% yield & Happy Meals vs. tech darling.

  Analysis at Seeking Alpha....

  Posted via email from Clark Schultz

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Best Financial Sites for DIY Investors 2012

It’s a sign of the times: Portfolio managers can’t beat index funds. The Fed has handcuffed savers with rates below 1%. Real estate is still shaky. Growth in China and the Pacific Rim is slowing down. And, of course, the Europe sovereign debt debacle and U.S. budget woes are still major overhangs.

The answer for investors as the new year approaches?…do-it-yourself.

The rationale is clear. DIY investors have more online resources than ever to find personal finance tips and investment advice that can replace the need to pay commissions and fees to stock brokers and financial planners. All the resources you need to make smart investment decisions are online. Here are the best sites to watch for 2012:

  1.    Jemstep

Website: http://www.jemstep.com

Twitter: @JemStep

Why it rocks: Jemstep cleverly mixes portfolio advice with portfolio management tools to give investors unbiased guidance on mutual funds and ETFs.  The future for ETFs as an investment vehicle for retirement keeps getting brighter and brighter with JemStep as an emerging resource.

  2.    Robotdough

Website: http://www.robotdough.com

Twitter: @RobotDough

Why it rocks: Robotdough is the best platform to backtest investing strategies and for do-it-yourselfers to track portfolios. The site’s stock screener includes coverage on all major exchanges, including the US, India, Pakistan, Australia, Hong Kong, and Europe

  3.    Simple (formerly BankSimple)

Website: http://www.banksimple.com

Twitter: @Simplify

Why it rocks: The philosophy behind of Simple is that each consumer should only need one card and one account without transaction fees for ATM machines or penalties for bank overdrafts. What is your bank doing for you except paying you low rates and charging you high fees? Simple is the ultimate DIY bank.

  4.    Wikinvest

Website: http://www.wikinvest.com

Twitter: @Wikinvest

Why it rocks: Wikinvest helps investors make decisions based on crowdsourced content and striking visual displays of data. The site has a great indy spirit that dovetails perfectly with investors who are making their own decisions.

  5.    Seeking Alpha

Website: http://www.seekingalpha.com

Twitter: @SeekingAlpha

Why it rocks: Seeking Alpha has the best stream of investing news and articles on the Internet.  Editors on the site filter the financial universe to find a wealth of stock market analysis and actionable investing ideas. News you can use.

  6.    MoneyRates

Website: http://www.moneyrates.com

Twitter: @MoneyRates

Why it rocks: Created and developed by Clark Schultz, so more than a little unrelenting bias prevails. The site helps user find valuable personal finance tips, as well as the highest rates on FDIC-insured CDs, money markets, savings accounts, and checking account.

  7.    Doxo

Website: http://www.doxo.com

Twitter: @Doxo

Why it rocks: A simple idea – but one that has never been fully developed on the Internet. Store your valuable data and financial information in a secure digital filing cabinet. Don’t be sloppy – sign up for Doxo.

  8.    GreenChoice Bank

Website: http://www.greenchoicebank.com

Twitter: @greenmarkpr (PR firm)

Why it rocks: This bank is doing almost everything right, where nearly every other bank is doing everything wrong. The Chicago-based bank is committed to its local community and supports sustainable projects that help the environment. What exactly is BofA and Goldman Sachs & the rest of the TARP banks doing with your deposits again?

            Posted via email from Clark Schultz

[clarkschultz]

Which countries have S&P's AAA-rating?

Wondering what countries rate the safest in the world by S&P for investors to hold sovereign debt? Here's the list:

  Australia, Austria, Canada, Denmark, Finland, France, Germany, Netherlands, Norway, Singapore, Sweden, Switzerland, the United Kingdom, and the United States.

  Down to 13....

            Posted via email from Clark Schultz

[clarkschultz]

Tech IPO Valuations on LinkedIn, Pandora, Groupon, Zynga, Homeaway, RenRen, Facebook and more

It's happening again. Market caps on newly minted public companies running wild.

  Here's the current checklist:

  LinkedIn (LNKD): $8.9 billion

  Pandora (P): $3 billion

  Homeaway (AWAY): $3.1 billion

  RenRen Inc. (RENN): $3.7B

  Then around the corner are the IPOs for Facebook, Groupon, Zynga and Square (maybe) all at multi-billion dollar cap levels. You can read great analysis for the revenue potential of each stock at Seeking Alpha, but each justification relies on large assumptions. Whether it to be the number of subscribers (LinkedIn), fending off competition (Pandora) or even growing ad revenue in a slow economy (Facebook) - the case for each stock relies on a projection.  What each company really needs to justify sky-high market caps is an industry-destroying model:

  - Google killed off newspapers

- Netflix destroyed Blockbuster

- Amazon obliterated brick-and-mortar bookstore

    Which of the companies above will not only grow customers and revenues at a rapid pace, but will change the face of its industry? If you know the answer, then that's the company whose market cap might be in line with reality.

      Posted via email from Clark Schultz

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[clarkschultz]

A Savings Idea that Earns More than the Rest

Trying to beat a 3% return on your savings these days is nearly impossible.

The highest online savings and money market rates are close to 1.20%. You can CD rates slightly over 3%, but you have to pick at least a 5-year maturity. Even the 10-year Treasury Bill dipped below a 3% yield this week. As for bond funds? Yikes, that's a time bomb. No thanks.

Dividends yields are looking much better than they did a year ago. And there is value in some underpriced stocks. But with the economy still weak, do you want to put your money at risk just to earn that 3% or 4% dividend payout?

Savers are really getting hammered because right when that 3% return on their savings seems impossible, food and energy prices have shot up.

There is one sleeper investment that is earning well over 4% and is 100% backed by the federal government. Safe, secure and kicking out more income than the rest.

Savings bonds.

These aren't your grandpa and grandma's savings bonds, but the inflation-indexed variety.

With a nice little CPI adjustment made on May 1, Series I bonds are now earning 4.60% until next November. The downside is that you have to hold onto your savings bonds for five years to avoid paying a penalty when you trade them in. But if you are looking for a investment that tracks inflation for a portion of your portfolio, don't forget about the Series I bond. They also have some tax advantages than can help you save money.

Here is more information on the Series I Savings Bond http://www.interest.com/cd-rates/news/i-bonds-set-to-soar-in-may/ from an article published on Interest.com

Posted via email from Clark Schultz