Big winners on Wall Street are yesterday's dogs

Click for more market data.

NEW YORK (CNNMoney)

First Solar was the best performing stock among the S&P 500, gaining more than 65% over the past three months.

It's a remarkable rebound for the leading maker of solar panels, which saw its stock fall 12% in the first quarter.

First Solar (FSLR) wowed investors in April with a surprisingly bullish outlook for the year. The stock shot up 43% in one day, after First Solar said it expected profits to be 28% above previous forecasts this year on healthy sales growth.

The solar industry has been in a slump as low-cost imports from China have depressed prices. But solar panel prices have stabilized and First Solar said demand is ramping up.

First Solar wasn't the only underdog to make a comeback.

J.C. Penney (JCP, Fortune 500) shares gained more than 12% during the quarter, recovering about half of their first quarter losses.

The retailer ousted CEO Ron Johnson in April, after his controversial turnaround plan failed to show results. J.C. Penney publicly apologized for the changes, and ran an ad on its YouTube channel that practically begged customers to come back.

Related: Top hedge fund manager bets on a return to normal markets

In business for more than 100 years, J.C. Penney has been swimming in red ink as it struggles to compete with online retailers. But the company has been strengthening its finances in an effort to mount another turnaround. It scored a $1.75 billion loan from Goldman Sachs (GS, Fortune 500) in April.

Other top performers in the quarter include popular momentum stocks, such as GameStop (GME, Fortune 500), Micron Technology (MU, Fortune 500) and Best Buy (BBY, Fortune 500).

Best Buy has also been on a turnaround kick, cutting costs and closing under performing stores. Investors have welcomed the moves, sending shares up 26% in the quarter, despite a disappointing sales report in May.

It was also a good quarter for health insurance companies. Shares of Aetna (AET, Fortune 500), WellPoint (WLP, Fortune 500) and Humana (HUM, Fortune 500) all rose by more than 23%.

Golden parachute? Mining companies were among the worst performers in the quarter as prices of precious and non-precious metals plunged.

Shares of Alpha Natural Resources (ANR, Fortune 500) and Newmont Mining (NEM, Fortune 500) fell more than 30%. Iron Mountain (IRM) and Freeport McMoRan (FCX, Fortune 500) also suffered double-digit losses.

Investors have been dumping mining stocks as gold prices plunge.

Related: Gold plunges to two-year low

The precious metal is down 25% this quarter, falling below $1,200 an ounce this week for the first time since August 2010. The largest gold-backed ETF, the SPDR Gold Shares Trust (GLD), lost nearly 24% during the past three months.

While the sell-off in gold has caught the most headlines, mining stocks have also been hurt by the falling price of copper.

Copper prices plunged nearly 12% in the second quarter as demand from China slowed and supplies increased.

A number of energy companies were also hit hard.

Marathon Petroleum (MPC, Fortune 500) shares are down more than 20% for the quarter, after gaining 42% in the first quarter. The company has been playing catch-up on the boom in domestic energy production, and is exposed to a slowdown in emerging market demand.

Peabody Energy (BTU, Fortune 500), which specializes in coal mining, and gas station operator Valero (VLO, Fortune 500) were also big losers in the quarter.

First Published: June 28, 2013: 12:44 PM ET

17.42 | 0 komentar | Read More

Starbucks' caffeine-fueled expansion

A cup of joe from the Starbucks coffee shop in Beijing's Forbidden City.

(Money Magazine)

It's a remarkable turnaround for a firm that just five years ago had to bring back former CEO Howard Schultz after overexpansion and error-filled forays beyond coffee -- ranging from breakfast foods to music -- eroded customer patience. After righting the ship, management is again embarking on another major expansion. But at what cost?

Venti valuations

After more than quadrupling in the past four years, the stock is foamy.

	Projected P/E ratios
Starbucks	27.1
Restaurant stocks	21.2
S&P 500	15.2

Notes: Price/earnings ratios are based on projected profits. Sources: Bloomberg, Morningstar

Strong brew

"Say 'Starbucks' to the average American, and they'll not only think of coffee, but good coffee," says David Ricci, co-manager of William Blair Large Cap Growth, which owns the stock. The same can now be said for global consumers.

Starbucks (SBUX, Fortune 500) is the world's only premium coffee superpower, and its basic business -- selling expensive cups of joe and even pricier espresso drinks through nearly 18,900 stores worldwide -- is as robust as its earthy Sumatra roast.

Related: Starbucks hikes prices

Even with a recession in Europe, global same-store sales still rose 6%. Revenues should climb 11.5% this year, vs. 7% growth for Dunkin' Brands (DNKN) (parent of Dunkin' Donuts).

And SBUX will save more than a quarter-billion dollars in coffee costs in the next two years because of falling bean prices.

Caffeinated costs

Starbucks is growing all over. The company plans to build 600 more cafés in the U.S. this year and another 1,000 stores in China by the end of 2015. It bought Teavana, Evolution Fresh, and La Boulange for $750 million to move more into teas, juices, and baked goods.

The roaster is also making a big push into the at-home market through K-cup sales and its new Verismo brewing system.

Related: Starbucks starts paying U.K. tax

"One concern is, Are you doing too much?" says Bill McVail, analyst at Turner Global Opportunities Fund, which owns the stock.

The reason the firm had to go back to Schultz was it tried -- and failed at -- brand extension via ice creams and even a music label. While croissants and coffee pods are closer to the core business, a misstep could dim Wall Street's starry eyes.

Steamy valuations

Starbucks is poised for years of growth, but it's also "a company with a valuation that is just too expensive for us," says Regina Lombardi, co-manager of BBH Global Core Select. The stock's price/earnings ratio is nearly double the S&P 500's, so you have to pay to jump on this caffeine-fueled bandwagon.

That said, even after boosting spending, Starbucks has $1.7 billion in cash, 10 times Dunkin's stash. Management is also likely to boost dividends in line with strong earnings growth, says Ashley Woodruff, an analyst at the T. Rowe Price Blue Chip Growth Fund, which owns the stock. "Starbucks is able to pay shareholders and still invest in the businesses it wants," she says.

Think: a splash of income to go with rich growth.

First Published: June 28, 2013: 4:42 PM ET

17.42 | 0 komentar | Read More

Paula Deen's business partners vow to support her

NEW YORK (CNNMoney)

Walmart (WMT, Fortune 500), Target (TGT, Fortune 500), Home Depot (HD, Fortune 500), Sears (SHLD, Fortune 500), JC Penney (JCP, Fortune 500) and Caesars (CZR, Fortune 500) have recently ended their deals with Deen while drugmaker Novo Nordisk (NVO) and home shopping channel QVC have suspended their dealings with the embattled celebrity chef.

On Friday, President Jimmy Carter, whose Atlanta-based Carter Foundation is hosting a human rights forum this weekend, weighed in on the issue.

"She was maybe excessively honest in saying that she had in the past, 30 years ago, used this terrible word," Carter told CNN's Suzanne Malveaux.

Carter, while not condoning Deen's racial slurs, said she's been punished enough and that he advised her to get the people she's helping to speak up.

Several of her business partners are doing just that, speaking up and pledging to stand by her. Many have issued letters of support for Deen.

Sandridge Food Corporation, a fresh foods manufacturer that produces deli salads, soups, entrees, desserts, sauces and dips, released a statement Wednesday announcing its unwavering support for Deen.

"Paula is a very caring person who has spent the majority of her life helping the less privileged and giving back," said CEO Mark Sandridge. "As an organization, we believe she and her team are on the right track and we look forward to continuing to work together."

Related: Paula Deen business shaken by controversy

Sandridge says he knows Deen personally and asserts the woman portrayed in the media is not the woman he knows.

"The woman that I know is a very giving person; I do not believe she's a racist whatsoever," said Sandridge. "We know where she comes from and she is genuinely about equality for all."

Kevin Lyles, President and Chief Operating Officer of Club Marketing Services -- which helps companies sell to Wal-Mart and Sam's Club -- affirmed his support for Deen.

"Her apology for the past, I believe came from the heart," said Lyles "The commitment to fairness and equality in the workplace for everyone was from the heart and also a clear message to everyone working for her and those supporting her brand that this behavior will not be tolerated by Paula Deen Enterprises going forward."

Lyles, a personal friend of Deen's for about four years, says she has always shown love and compassion for her fellow man, and has made financial decisions that have not always been in her best interest.

As Deen became a household name, he said she had many opportunities to drop smaller companies that were supporting her and switch to larger companies that could benefit her more financially. But Lyles said Deen instead chose to stay with them.

"She wanted the people that supported her to grow with her," Lyles said.

Related: Paula Deen fans lash out against Wal-Mart

Perhaps one of Deen's most ardent supporters is Julie Goodman Cook, a sales consultant who oversees the Paula Deen cruise for Alice Travel. Cook's unwavering support was on full display as she explained how generous and giving Deen has been.

Cook said, while on the Deen themed cruise, the chef auctioned off personal items such as clothing worn while on TV as well as serving dishes, artwork and other items from her home. The auction raised almost $80,000 for Deen's Bag Lady Foundation which supports women and families in need.

Cook said the support she has seen from Deen's fans of all races has been overwhelming. "My phone has not stopped ringing," said Cook. "The emails haven't stopped, Facebook is going crazy and they are all positive comments from her fans."

First Published: June 28, 2013: 3:16 PM ET

17.42 | 0 komentar | Read More

Big winners on Wall Street are yesterday's dogs

Click for more market data.

NEW YORK (CNNMoney)

First Solar was the best performing stock among the S&P 500, gaining more than 65% over the past three months.

It's a remarkable rebound for the leading maker of solar panels, which saw its stock fall 12% in the first quarter.

First Solar (FSLR) wowed investors in April with a surprisingly bullish outlook for the year. The stock shot up 43% in one day, after First Solar said it expected profits to be 28% above previous forecasts this year on healthy sales growth.

The solar industry has been in a slump as low-cost imports from China have depressed prices. But solar panel prices have stabilized and First Solar said demand is ramping up.

First Solar wasn't the only underdog to make a comeback.

J.C. Penney (JCP, Fortune 500) shares gained more than 12% during the quarter, recovering about half of their first quarter losses.

The retailer ousted CEO Ron Johnson in April, after his controversial turnaround plan failed to show results. J.C. Penney publicly apologized for the changes, and ran an ad on its YouTube channel that practically begged customers to come back.

Related: Top hedge fund manager bets on a return to normal markets

In business for more than 100 years, J.C. Penney has been swimming in red ink as it struggles to compete with online retailers. But the company has been strengthening its finances in an effort to mount another turnaround. It scored a $1.75 billion loan from Goldman Sachs (GS, Fortune 500) in April.

Other top performers in the quarter include popular momentum stocks, such as GameStop (GME, Fortune 500), Micron Technology (MU, Fortune 500) and Best Buy (BBY, Fortune 500).

Best Buy has also been on a turnaround kick, cutting costs and closing under performing stores. Investors have welcomed the moves, sending shares up 26% in the quarter, despite a disappointing sales report in May.

It was also a good quarter for health insurance companies. Shares of Aetna (AET, Fortune 500), WellPoint (WLP, Fortune 500) and Humana (HUM, Fortune 500) all rose by more than 23%.

Golden parachute? Mining companies were among the worst performers in the quarter as prices of precious and non-precious metals plunged.

Shares of Alpha Natural Resources (ANR, Fortune 500) and Newmont Mining (NEM, Fortune 500) fell more than 30%. Iron Mountain (IRM) and Freeport McMoRan (FCX, Fortune 500) also suffered double-digit losses.

Investors have been dumping mining stocks as gold prices plunge.

Related: Gold plunges to two-year low

The precious metal is down 25% this quarter, falling below $1,200 an ounce this week for the first time since August 2010. The largest gold-backed ETF, the SPDR Gold Shares Trust (GLD), lost nearly 24% during the past three months.

While the sell-off in gold has caught the most headlines, mining stocks have also been hurt by the falling price of copper.

Copper prices plunged nearly 12% in the second quarter as demand from China slowed and supplies increased.

A number of energy companies were also hit hard.

Marathon Petroleum (MPC, Fortune 500) shares are down more than 20% for the quarter, after gaining 42% in the first quarter. The company has been playing catch-up on the boom in domestic energy production, and is exposed to a slowdown in emerging market demand.

Peabody Energy (BTU, Fortune 500), which specializes in coal mining, and gas station operator Valero (VLO, Fortune 500) were also big losers in the quarter.

First Published: June 28, 2013: 12:44 PM ET

15.30 | 0 komentar | Read More

Starbucks' caffeine-fueled expansion

A cup of joe from the Starbucks coffee shop in Beijing's Forbidden City.

(Money Magazine)

It's a remarkable turnaround for a firm that just five years ago had to bring back former CEO Howard Schultz after overexpansion and error-filled forays beyond coffee -- ranging from breakfast foods to music -- eroded customer patience. After righting the ship, management is again embarking on another major expansion. But at what cost?

Venti valuations

After more than quadrupling in the past four years, the stock is foamy.

	Projected P/E ratios
Starbucks	27.1
Restaurant stocks	21.2
S&P 500	15.2

Notes: Price/earnings ratios are based on projected profits. Sources: Bloomberg, Morningstar

Strong brew

"Say 'Starbucks' to the average American, and they'll not only think of coffee, but good coffee," says David Ricci, co-manager of William Blair Large Cap Growth, which owns the stock. The same can now be said for global consumers.

Starbucks (SBUX, Fortune 500) is the world's only premium coffee superpower, and its basic business -- selling expensive cups of joe and even pricier espresso drinks through nearly 18,900 stores worldwide -- is as robust as its earthy Sumatra roast.

Related: Starbucks hikes prices

Even with a recession in Europe, global same-store sales still rose 6%. Revenues should climb 11.5% this year, vs. 7% growth for Dunkin' Brands (DNKN) (parent of Dunkin' Donuts).

And SBUX will save more than a quarter-billion dollars in coffee costs in the next two years because of falling bean prices.

Caffeinated costs

Starbucks is growing all over. The company plans to build 600 more cafés in the U.S. this year and another 1,000 stores in China by the end of 2015. It bought Teavana, Evolution Fresh, and La Boulange for $750 million to move more into teas, juices, and baked goods.

The roaster is also making a big push into the at-home market through K-cup sales and its new Verismo brewing system.

Related: Starbucks starts paying U.K. tax

"One concern is, Are you doing too much?" says Bill McVail, analyst at Turner Global Opportunities Fund, which owns the stock.

The reason the firm had to go back to Schultz was it tried -- and failed at -- brand extension via ice creams and even a music label. While croissants and coffee pods are closer to the core business, a misstep could dim Wall Street's starry eyes.

Steamy valuations

Starbucks is poised for years of growth, but it's also "a company with a valuation that is just too expensive for us," says Regina Lombardi, co-manager of BBH Global Core Select. The stock's price/earnings ratio is nearly double the S&P 500's, so you have to pay to jump on this caffeine-fueled bandwagon.

That said, even after boosting spending, Starbucks has $1.7 billion in cash, 10 times Dunkin's stash. Management is also likely to boost dividends in line with strong earnings growth, says Ashley Woodruff, an analyst at the T. Rowe Price Blue Chip Growth Fund, which owns the stock. "Starbucks is able to pay shareholders and still invest in the businesses it wants," she says.

Think: a splash of income to go with rich growth.

First Published: June 28, 2013: 4:42 PM ET

15.30 | 0 komentar | Read More

Paula Deen's business partners vow to support her

NEW YORK (CNNMoney)

Walmart (WMT, Fortune 500), Target (TGT, Fortune 500), Home Depot (HD, Fortune 500), Sears (SHLD, Fortune 500), JC Penney (JCP, Fortune 500) and Caesars (CZR, Fortune 500) have recently ended their deals with Deen while drugmaker Novo Nordisk (NVO) and home shopping channel QVC have suspended their dealings with the embattled celebrity chef.

On Friday, President Jimmy Carter, whose Atlanta-based Carter Foundation is hosting a human rights forum this weekend, weighed in on the issue.

"She was maybe excessively honest in saying that she had in the past, 30 years ago, used this terrible word," Carter told CNN's Suzanne Malveaux.

Carter, while not condoning Deen's racial slurs, said she's been punished enough and that he advised her to get the people she's helping to speak up.

Several of her business partners are doing just that, speaking up and pledging to stand by her. Many have issued letters of support for Deen.

Sandridge Food Corporation, a fresh foods manufacturer that produces deli salads, soups, entrees, desserts, sauces and dips, released a statement Wednesday announcing its unwavering support for Deen.

"Paula is a very caring person who has spent the majority of her life helping the less privileged and giving back," said CEO Mark Sandridge. "As an organization, we believe she and her team are on the right track and we look forward to continuing to work together."

Related: Paula Deen business shaken by controversy

Sandridge says he knows Deen personally and asserts the woman portrayed in the media is not the woman he knows.

"The woman that I know is a very giving person; I do not believe she's a racist whatsoever," said Sandridge. "We know where she comes from and she is genuinely about equality for all."

Kevin Lyles, President and Chief Operating Officer of Club Marketing Services -- which helps companies sell to Wal-Mart and Sam's Club -- affirmed his support for Deen.

"Her apology for the past, I believe came from the heart," said Lyles "The commitment to fairness and equality in the workplace for everyone was from the heart and also a clear message to everyone working for her and those supporting her brand that this behavior will not be tolerated by Paula Deen Enterprises going forward."

Lyles, a personal friend of Deen's for about four years, says she has always shown love and compassion for her fellow man, and has made financial decisions that have not always been in her best interest.

As Deen became a household name, he said she had many opportunities to drop smaller companies that were supporting her and switch to larger companies that could benefit her more financially. But Lyles said Deen instead chose to stay with them.

"She wanted the people that supported her to grow with her," Lyles said.

Related: Paula Deen fans lash out against Wal-Mart

Perhaps one of Deen's most ardent supporters is Julie Goodman Cook, a sales consultant who oversees the Paula Deen cruise for Alice Travel. Cook's unwavering support was on full display as she explained how generous and giving Deen has been.

Cook said, while on the Deen themed cruise, the chef auctioned off personal items such as clothing worn while on TV as well as serving dishes, artwork and other items from her home. The auction raised almost $80,000 for Deen's Bag Lady Foundation which supports women and families in need.

Cook said the support she has seen from Deen's fans of all races has been overwhelming. "My phone has not stopped ringing," said Cook. "The emails haven't stopped, Facebook is going crazy and they are all positive comments from her fans."

First Published: June 28, 2013: 3:16 PM ET

15.30 | 0 komentar | Read More

Big winners on Wall Street are yesterday's dogs

Click for more market data.

NEW YORK (CNNMoney)

First Solar was the best performing stock among the S&P 500, gaining more than 65% over the past three months.

It's a remarkable rebound for the leading maker of solar panels, which saw its stock fall 12% in the first quarter.

First Solar (FSLR) wowed investors in April with a surprisingly bullish outlook for the year. The stock shot up 43% in one day, after First Solar said it expected profits to be 28% above previous forecasts this year on healthy sales growth.

The solar industry has been in a slump as low-cost imports from China have depressed prices. But solar panel prices have stabilized and First Solar said demand is ramping up.

First Solar wasn't the only underdog to make a comeback.

J.C. Penney (JCP, Fortune 500) shares gained more than 12% during the quarter, recovering about half of their first quarter losses.

The retailer ousted CEO Ron Johnson in April, after his controversial turnaround plan failed to show results. J.C. Penney publicly apologized for the changes, and ran an ad on its YouTube channel that practically begged customers to come back.

Related: Top hedge fund manager bets on a return to normal markets

In business for more than 100 years, J.C. Penney has been swimming in red ink as it struggles to compete with online retailers. But the company has been strengthening its finances in an effort to mount another turnaround. It scored a $1.75 billion loan from Goldman Sachs (GS, Fortune 500) in April.

Other top performers in the quarter include popular momentum stocks, such as GameStop (GME, Fortune 500), Micron Technology (MU, Fortune 500) and Best Buy (BBY, Fortune 500).

Best Buy has also been on a turnaround kick, cutting costs and closing under performing stores. Investors have welcomed the moves, sending shares up 26% in the quarter, despite a disappointing sales report in May.

It was also a good quarter for health insurance companies. Shares of Aetna (AET, Fortune 500), WellPoint (WLP, Fortune 500) and Humana (HUM, Fortune 500) all rose by more than 23%.

Golden parachute? Mining companies were among the worst performers in the quarter as prices of precious and non-precious metals plunged.

Shares of Alpha Natural Resources (ANR, Fortune 500) and Newmont Mining (NEM, Fortune 500) fell more than 30%. Iron Mountain (IRM) and Freeport McMoRan (FCX, Fortune 500) also suffered double-digit losses.

Investors have been dumping mining stocks as gold prices plunge.

Related: Gold plunges to two-year low

The precious metal is down 25% this quarter, falling below $1,200 an ounce this week for the first time since August 2010. The largest gold-backed ETF, the SPDR Gold Shares Trust (GLD), lost nearly 24% during the past three months.

While the sell-off in gold has caught the most headlines, mining stocks have also been hurt by the falling price of copper.

Copper prices plunged nearly 12% in the second quarter as demand from China slowed and supplies increased.

A number of energy companies were also hit hard.

Marathon Petroleum (MPC, Fortune 500) shares are down more than 20% for the quarter, after gaining 42% in the first quarter. The company has been playing catch-up on the boom in domestic energy production, and is exposed to a slowdown in emerging market demand.

Peabody Energy (BTU, Fortune 500), which specializes in coal mining, and gas station operator Valero (VLO, Fortune 500) were also big losers in the quarter.

First Published: June 28, 2013: 12:44 PM ET

17.42 | 0 komentar | Read More

Starbucks' caffeine-fueled expansion

A cup of joe from the Starbucks coffee shop in Beijing's Forbidden City.

(Money Magazine)

It's a remarkable turnaround for a firm that just five years ago had to bring back former CEO Howard Schultz after overexpansion and error-filled forays beyond coffee -- ranging from breakfast foods to music -- eroded customer patience. After righting the ship, management is again embarking on another major expansion. But at what cost?

Venti valuations

After more than quadrupling in the past four years, the stock is foamy.

	Projected P/E ratios
Starbucks	27.1
Restaurant stocks	21.2
S&P 500	15.2

Notes: Price/earnings ratios are based on projected profits. Sources: Bloomberg, Morningstar

Strong brew

"Say 'Starbucks' to the average American, and they'll not only think of coffee, but good coffee," says David Ricci, co-manager of William Blair Large Cap Growth, which owns the stock. The same can now be said for global consumers.

Starbucks (SBUX, Fortune 500) is the world's only premium coffee superpower, and its basic business -- selling expensive cups of joe and even pricier espresso drinks through nearly 18,900 stores worldwide -- is as robust as its earthy Sumatra roast.

Related: Starbucks hikes prices

Even with a recession in Europe, global same-store sales still rose 6%. Revenues should climb 11.5% this year, vs. 7% growth for Dunkin' Brands (DNKN) (parent of Dunkin' Donuts).

And SBUX will save more than a quarter-billion dollars in coffee costs in the next two years because of falling bean prices.

Caffeinated costs

Starbucks is growing all over. The company plans to build 600 more cafés in the U.S. this year and another 1,000 stores in China by the end of 2015. It bought Teavana, Evolution Fresh, and La Boulange for $750 million to move more into teas, juices, and baked goods.

The roaster is also making a big push into the at-home market through K-cup sales and its new Verismo brewing system.

Related: Starbucks starts paying U.K. tax

"One concern is, Are you doing too much?" says Bill McVail, analyst at Turner Global Opportunities Fund, which owns the stock.

The reason the firm had to go back to Schultz was it tried -- and failed at -- brand extension via ice creams and even a music label. While croissants and coffee pods are closer to the core business, a misstep could dim Wall Street's starry eyes.

Steamy valuations

Starbucks is poised for years of growth, but it's also "a company with a valuation that is just too expensive for us," says Regina Lombardi, co-manager of BBH Global Core Select. The stock's price/earnings ratio is nearly double the S&P 500's, so you have to pay to jump on this caffeine-fueled bandwagon.

That said, even after boosting spending, Starbucks has $1.7 billion in cash, 10 times Dunkin's stash. Management is also likely to boost dividends in line with strong earnings growth, says Ashley Woodruff, an analyst at the T. Rowe Price Blue Chip Growth Fund, which owns the stock. "Starbucks is able to pay shareholders and still invest in the businesses it wants," she says.

Think: a splash of income to go with rich growth.

First Published: June 28, 2013: 4:42 PM ET

17.42 | 0 komentar | Read More

Paula Deen's business partners vow to support her

NEW YORK (CNNMoney)

Walmart (WMT, Fortune 500), Target (TGT, Fortune 500), Home Depot (HD, Fortune 500), Sears (SHLD, Fortune 500), JC Penney (JCP, Fortune 500) and Caesars (CZR, Fortune 500) have recently ended their deals with Deen while drugmaker Novo Nordisk (NVO) and home shopping channel QVC have suspended their dealings with the embattled celebrity chef.

On Friday, President Jimmy Carter, whose Atlanta-based Carter Foundation is hosting a human rights forum this weekend, weighed in on the issue.

"She was maybe excessively honest in saying that she had in the past, 30 years ago, used this terrible word," Carter told CNN's Suzanne Malveaux.

Carter, while not condoning Deen's racial slurs, said she's been punished enough and that he advised her to get the people she's helping to speak up.

Several of her business partners are doing just that, speaking up and pledging to stand by her. Many have issued letters of support for Deen.

Sandridge Food Corporation, a fresh foods manufacturer that produces deli salads, soups, entrees, desserts, sauces and dips, released a statement Wednesday announcing its unwavering support for Deen.

"Paula is a very caring person who has spent the majority of her life helping the less privileged and giving back," said CEO Mark Sandridge. "As an organization, we believe she and her team are on the right track and we look forward to continuing to work together."

Related: Paula Deen business shaken by controversy

Sandridge says he knows Deen personally and asserts the woman portrayed in the media is not the woman he knows.

"The woman that I know is a very giving person; I do not believe she's a racist whatsoever," said Sandridge. "We know where she comes from and she is genuinely about equality for all."

Kevin Lyles, President and Chief Operating Officer of Club Marketing Services -- which helps companies sell to Wal-Mart and Sam's Club -- affirmed his support for Deen.

"Her apology for the past, I believe came from the heart," said Lyles "The commitment to fairness and equality in the workplace for everyone was from the heart and also a clear message to everyone working for her and those supporting her brand that this behavior will not be tolerated by Paula Deen Enterprises going forward."

Lyles, a personal friend of Deen's for about four years, says she has always shown love and compassion for her fellow man, and has made financial decisions that have not always been in her best interest.

As Deen became a household name, he said she had many opportunities to drop smaller companies that were supporting her and switch to larger companies that could benefit her more financially. But Lyles said Deen instead chose to stay with them.

"She wanted the people that supported her to grow with her," Lyles said.

Related: Paula Deen fans lash out against Wal-Mart

Perhaps one of Deen's most ardent supporters is Julie Goodman Cook, a sales consultant who oversees the Paula Deen cruise for Alice Travel. Cook's unwavering support was on full display as she explained how generous and giving Deen has been.

Cook said, while on the Deen themed cruise, the chef auctioned off personal items such as clothing worn while on TV as well as serving dishes, artwork and other items from her home. The auction raised almost $80,000 for Deen's Bag Lady Foundation which supports women and families in need.

Cook said the support she has seen from Deen's fans of all races has been overwhelming. "My phone has not stopped ringing," said Cook. "The emails haven't stopped, Facebook is going crazy and they are all positive comments from her fans."

First Published: June 28, 2013: 3:16 PM ET

17.42 | 0 komentar | Read More

Big winners on Wall Street are yesterday's dogs

Click for more market data.

NEW YORK (CNNMoney)

First Solar was the best performing stock among the S&P 500, gaining more than 65% over the past three months.

It's a remarkable rebound for the leading maker of solar panels, which saw its stock fall 12% in the first quarter.

First Solar (FSLR) wowed investors in April with a surprisingly bullish outlook for the year. The stock shot up 43% in one day, after First Solar said it expected profits to be 28% above previous forecasts this year on healthy sales growth.

The solar industry has been in a slump as low-cost imports from China have depressed prices. But solar panel prices have stabilized and First Solar said demand is ramping up.

First Solar wasn't the only underdog to make a comeback.

J.C. Penney (JCP, Fortune 500) shares gained more than 12% during the quarter, recovering about half of their first quarter losses.

The retailer ousted CEO Ron Johnson in April, after his controversial turnaround plan failed to show results. J.C. Penney publicly apologized for the changes, and ran an ad on its YouTube channel that practically begged customers to come back.

Related: Top hedge fund manager bets on a return to normal markets

In business for more than 100 years, J.C. Penney has been swimming in red ink as it struggles to compete with online retailers. But the company has been strengthening its finances in an effort to mount another turnaround. It scored a $1.75 billion loan from Goldman Sachs (GS, Fortune 500) in April.

Other top performers in the quarter include popular momentum stocks, such as GameStop (GME, Fortune 500), Micron Technology (MU, Fortune 500) and Best Buy (BBY, Fortune 500).

Best Buy has also been on a turnaround kick, cutting costs and closing under performing stores. Investors have welcomed the moves, sending shares up 26% in the quarter, despite a disappointing sales report in May.

It was also a good quarter for health insurance companies. Shares of Aetna (AET, Fortune 500), WellPoint (WLP, Fortune 500) and Humana (HUM, Fortune 500) all rose by more than 23%.

Golden parachute? Mining companies were among the worst performers in the quarter as prices of precious and non-precious metals plunged.

Shares of Alpha Natural Resources (ANR, Fortune 500) and Newmont Mining (NEM, Fortune 500) fell more than 30%. Iron Mountain (IRM) and Freeport McMoRan (FCX, Fortune 500) also suffered double-digit losses.

Investors have been dumping mining stocks as gold prices plunge.

Related: Gold plunges to two-year low

The precious metal is down 25% this quarter, falling below $1,200 an ounce this week for the first time since August 2010. The largest gold-backed ETF, the SPDR Gold Shares Trust (GLD), lost nearly 24% during the past three months.

While the sell-off in gold has caught the most headlines, mining stocks have also been hurt by the falling price of copper.

Copper prices plunged nearly 12% in the second quarter as demand from China slowed and supplies increased.

A number of energy companies were also hit hard.

Marathon Petroleum (MPC, Fortune 500) shares are down more than 20% for the quarter, after gaining 42% in the first quarter. The company has been playing catch-up on the boom in domestic energy production, and is exposed to a slowdown in emerging market demand.

Peabody Energy (BTU, Fortune 500), which specializes in coal mining, and gas station operator Valero (VLO, Fortune 500) were also big losers in the quarter.

First Published: June 28, 2013: 12:44 PM ET

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Starbucks' caffeine-fueled expansion

A cup of joe from the Starbucks coffee shop in Beijing's Forbidden City.

(Money Magazine)

It's a remarkable turnaround for a firm that just five years ago had to bring back former CEO Howard Schultz after overexpansion and error-filled forays beyond coffee -- ranging from breakfast foods to music -- eroded customer patience. After righting the ship, management is again embarking on another major expansion. But at what cost?

Venti valuations

After more than quadrupling in the past four years, the stock is foamy.

	Projected P/E ratios
Starbucks	27.1
Restaurant stocks	21.2
S&P 500	15.2

Notes: Price/earnings ratios are based on projected profits. Sources: Bloomberg, Morningstar

Strong brew

"Say 'Starbucks' to the average American, and they'll not only think of coffee, but good coffee," says David Ricci, co-manager of William Blair Large Cap Growth, which owns the stock. The same can now be said for global consumers.

Starbucks (SBUX, Fortune 500) is the world's only premium coffee superpower, and its basic business -- selling expensive cups of joe and even pricier espresso drinks through nearly 18,900 stores worldwide -- is as robust as its earthy Sumatra roast.

Related: Starbucks hikes prices

Even with a recession in Europe, global same-store sales still rose 6%. Revenues should climb 11.5% this year, vs. 7% growth for Dunkin' Brands (DNKN) (parent of Dunkin' Donuts).

And SBUX will save more than a quarter-billion dollars in coffee costs in the next two years because of falling bean prices.

Caffeinated costs

Starbucks is growing all over. The company plans to build 600 more cafés in the U.S. this year and another 1,000 stores in China by the end of 2015. It bought Teavana, Evolution Fresh, and La Boulange for $750 million to move more into teas, juices, and baked goods.

The roaster is also making a big push into the at-home market through K-cup sales and its new Verismo brewing system.

Related: Starbucks starts paying U.K. tax

"One concern is, Are you doing too much?" says Bill McVail, analyst at Turner Global Opportunities Fund, which owns the stock.

The reason the firm had to go back to Schultz was it tried -- and failed at -- brand extension via ice creams and even a music label. While croissants and coffee pods are closer to the core business, a misstep could dim Wall Street's starry eyes.

Steamy valuations

Starbucks is poised for years of growth, but it's also "a company with a valuation that is just too expensive for us," says Regina Lombardi, co-manager of BBH Global Core Select. The stock's price/earnings ratio is nearly double the S&P 500's, so you have to pay to jump on this caffeine-fueled bandwagon.

That said, even after boosting spending, Starbucks has $1.7 billion in cash, 10 times Dunkin's stash. Management is also likely to boost dividends in line with strong earnings growth, says Ashley Woodruff, an analyst at the T. Rowe Price Blue Chip Growth Fund, which owns the stock. "Starbucks is able to pay shareholders and still invest in the businesses it wants," she says.

Think: a splash of income to go with rich growth.

First Published: June 28, 2013: 4:42 PM ET

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Paula Deen's business partners vow to support her

NEW YORK (CNNMoney)

Walmart (WMT, Fortune 500), Target (TGT, Fortune 500), Home Depot (HD, Fortune 500), Sears (SHLD, Fortune 500), JC Penney (JCP, Fortune 500) and Caesars (CZR, Fortune 500) have recently ended their deals with Deen while drugmaker Novo Nordisk (NVO) and home shopping channel QVC have suspended their dealings with the embattled celebrity chef.

On Friday, President Jimmy Carter, whose Atlanta-based Carter Foundation is hosting a human rights forum this weekend, weighed in on the issue.

"She was maybe excessively honest in saying that she had in the past, 30 years ago, used this terrible word," Carter told CNN's Suzanne Malveaux.

Carter, while not condoning Deen's racial slurs, said she's been punished enough and that he advised her to get the people she's helping to speak up.

Several of her business partners are doing just that, speaking up and pledging to stand by her. Many have issued letters of support for Deen.

Sandridge Food Corporation, a fresh foods manufacturer that produces deli salads, soups, entrees, desserts, sauces and dips, released a statement Wednesday announcing its unwavering support for Deen.

"Paula is a very caring person who has spent the majority of her life helping the less privileged and giving back," said CEO Mark Sandridge. "As an organization, we believe she and her team are on the right track and we look forward to continuing to work together."

Related: Paula Deen business shaken by controversy

Sandridge says he knows Deen personally and asserts the woman portrayed in the media is not the woman he knows.

"The woman that I know is a very giving person; I do not believe she's a racist whatsoever," said Sandridge. "We know where she comes from and she is genuinely about equality for all."

Kevin Lyles, President and Chief Operating Officer of Club Marketing Services -- which helps companies sell to Wal-Mart and Sam's Club -- affirmed his support for Deen.

"Her apology for the past, I believe came from the heart," said Lyles "The commitment to fairness and equality in the workplace for everyone was from the heart and also a clear message to everyone working for her and those supporting her brand that this behavior will not be tolerated by Paula Deen Enterprises going forward."

Lyles, a personal friend of Deen's for about four years, says she has always shown love and compassion for her fellow man, and has made financial decisions that have not always been in her best interest.

As Deen became a household name, he said she had many opportunities to drop smaller companies that were supporting her and switch to larger companies that could benefit her more financially. But Lyles said Deen instead chose to stay with them.

"She wanted the people that supported her to grow with her," Lyles said.

Related: Paula Deen fans lash out against Wal-Mart

Perhaps one of Deen's most ardent supporters is Julie Goodman Cook, a sales consultant who oversees the Paula Deen cruise for Alice Travel. Cook's unwavering support was on full display as she explained how generous and giving Deen has been.

Cook said, while on the Deen themed cruise, the chef auctioned off personal items such as clothing worn while on TV as well as serving dishes, artwork and other items from her home. The auction raised almost $80,000 for Deen's Bag Lady Foundation which supports women and families in need.

Cook said the support she has seen from Deen's fans of all races has been overwhelming. "My phone has not stopped ringing," said Cook. "The emails haven't stopped, Facebook is going crazy and they are all positive comments from her fans."

First Published: June 28, 2013: 3:16 PM ET

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Healthy savings: Fewer lab tests

When doctors know a lab test's cost, expenses are cut 9.6%.

(Money Magazine)

A new Johns Hopkins study found that doctors shown the bill for lab tests ordered fewer of them, cutting expenditures 9.6%.

"Most medical care is delivered in a cost vacuum," says co-author Leonard Feldman. "Information helps providers be more cost-conscious."

Here are other ways in which greater awareness of prices can promote healthy savings for you.

Prescription for savings

Health care: To better weigh costs, check if your insurer lets you compare provider pricing. And to get your doctor thinking about your outlays, ask him or her whether less expensive treatments or fewer tests will suffice.

Investing: A new study finds the hidden cost of mutual funds' trades runs to 1.4% of assets annually, more than the stated expenses of the average fund. Best deals: midsize and smaller funds trading less than 60% of holdings a year, says co-author Roger Edelen of the University of California at Davis.

Related: Best advice now for saving and spending

Travel: Fees can add 5% or more to a hotel's rate, says New York University's Bjorn Hanson.

The latest gotcha: a charge to park in the front lot. Ask about fees beforehand, note the rep's name, and refer to it if surprises pop up later.

First Published: June 27, 2013: 4:21 PM ET

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U.S. says Chinese wind turbine firm stole trade secrets

A wind farm operating in China.

HONG KONG (CNNMoney)

The Chinese company -- Sinovel -- is one of the country's largest producers of wind turbines. It is accused of encouraging an employee of U.S.-based AMSC (AMSC) to steal copyrighted source code from a computer in Wisconsin for use in its turbines.

Sinovel then used the technology in four turbines that were sold to customers in Massachusetts and installed not far from AMSC's headquarters.

"The fact that Sinovel has exported stolen American intellectual property from China back into the United States -- less than 40 miles from our global headquarters -- shows not only a blatant disrespect for intellectual property but a disregard for international trade law," AMSC CEO Daniel McGahn said in a statement.

Sinovel did not immediately respond to requests for comment.

PM3000, the software in question, helps regulate the flow of electricity from turbines to electrical grids. The theft resulted in a loss of $800 million for AMSC, according to the indictment handed up by a federal grand jury in Wisconsin.

Some 500 AMSC employees have lost their jobs following Sinovel's "egregious and unlawful behavior," McGahn said.

Related: EU-China trade spat widens

"The allegations in this indictment describe a well-planned attack on an American business by international defendants -- nothing short of attempted corporate homicide," U.S. Attorney John Vaudreuil said in a statement.

A conviction could carry penalties approaching $5 billion for Sinovel, as well as lengthy prison sentences for the accused individuals.

The U.S. has recently adopted a new strategy for combating what officials see as a persistent threat to the American military and economy: It has started naming China -- and its armed forces -- as the source of actions that pilfer military, trade and industry secrets.

The change in tactics follows years of virtual silence from American officials on the issue. The government's claims have been bolstered by a growing number of security firms and companies who say they have fallen victim to intellectual property theft attacks emanating from China.

President Obama raised the issue earlier this month during a summit with Chinese President Xi Jinping, but the meeting did not produce a publicly-announced breakthrough.

"It's quite obvious now that the Chinese senior leadership understand clearly the importance of this issue to the United States," White House National Security Adviser Tom Donilon said after the summit.

First Published: June 28, 2013: 5:33 AM ET

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Stocks: Ending the quarter on a high note

Click chart for more market data

NEW YORK (CNNMoney)

U.S. stock futures were modestly higher, setting Wall Street up for a fourth straight up day. While June has been less than stellar for investors, stocks are on track to end the second quarter up 3%.

And year-to-date, stocks are still up 12% to 15%. The recent gyrations have been sparked by worries about when the Federal Reserve may start to pull back on its massive bond buying program that has been a big driver of the bull market.

As painful as the recent roller coaster has been, experts say the gyrations are healthy. Stocks needed a catalyst to pull back and Fed chairman Ben Bernanke provided that when he said the central bank could start tapering later this year if the economy continues to improve. Of course, if the economy deteriorates, the Fed could very well add to its stimulus.

Still, the mere mention of tapering sent bond investors scrambling for the exits. The yield on the 10-year Treasury note hit 2.65% earlier this week -- its highest since August 2011 and well above the 1.6% in early May.

And gold prices got slammed as well. Prices are down 13% so far this month.

U.S. stocks rallied for a third day Thursday, as investors shook off concerns about waning central bank stimulus.

Related: Fear & Greed Index nudges up to fear

Embattled mobile company Blackberry (BBRY) will release first-quarter results before the bell.

Nike (NKE, Fortune 500) shares edged lower in premarket trading, easing from strong after hours gains following a strong earnings report. Meanwhile, shares of outsourcing and consulting firm Accenture (ACN) were lower after the firm cut expectations for its year-end results.

European markets advanced in morning trading, while Asian markets ended in positive territory.

The benchmark Nikkei boomed on positive economic data out of Japan, adding 3.5%. The Shanghai Composite increased 1.5% and the Hang Seng closed 1.8% higher.

First Published: June 28, 2013: 5:52 AM ET

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Feds crack down on lenders bilking military members

NEW YORK (CNNMoney)

In one action announced Thursday, the Consumer Financial Protection Bureau said it has ordered U.S. Bank (USB, Fortune 500) and another company, Dealers' Financial Services, to refund a combined $6.5 million to more than 50,000 active duty service members to make up for failing to disclose fees and other costs on auto loans.

The government agency said the auto loans were marketed to active military members with little credit history, borrowers who were "often young and new to the car buying process."

The size of the refund will vary widely, according to CFPB, but will average around $100.

An investigation of the firms' so-called "MILES" program -- a subprime auto loan program that operated near military bases across the country -- found that U.S. Bank failed to properly disclose fees and other information about the loans, while Dealers' Financial Services understated the costs of add-on products, such as vehicle service or insurance.

For example, marketing materials claimed adding a vehicle service contract would add only a few dollars a month, when it actually cost an average $43 extra per month.

The program also required service members to pay the loans using the military allotment system, which deducts payments directly from military paychecks, but then charged the borrowers $36 in monthly processing fees each year. U.S. Bank did not properly disclose those fees, the CFPB said.

U.S. Bank said in a statement that the MILES program, which was created more than a decade ago, has been "a popular program with young military service people, who faced the prospect of paying much higher interest rates at other lenders." Still, the company said it plans to exit the program, and noted that it had not been fined beyond paying the refunds.

Related: Veterans losing savings to 'pension advance' firms

The CFPB learned of the program from the father of a 21-year-old soldier who said his son had inked a loan agreement that ate up more than 70% of his take-home salary before it even hit his bank account.

Also on Thursday, the Department of Defense announced plans to study other potential abuses of the decades-old military allotment system.

Financial counselors on military bases often tell horror stories of the automatic deductions, said Holly Petraeus, the CFPB's assistant director for Service Member Affairs.

"They tell me about instances where there are service members who are 'allotted out', where they've got virtually all of their paycheck going to allotment before any of it gets to their bank," she said.

Related: Getting into the military is getting tougher

Dealers' Financial Services has agreed to stop requiring borrowers to use military allotments. It said it will now focus on "new potential lending partners that the company believes will provide more competitive financing alternatives to our service member customers."

In an unrelated action, the Federal Trade Commission announced that Mortgage Investors Corporation, which offers mortgage refinance loans to military veterans, would pay a $7.5 million fine for illegal telemarketing practices.

Telemarketers for the firm called more than 5.4 million numbers listed on the national Do Not Call registry, and misstated the terms of their adjustable rate loan products.

First Published: June 27, 2013: 3:49 PM ET

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Healthy savings: Fewer lab tests

When doctors know a lab test's cost, expenses are cut 9.6%.

(Money Magazine)

A new Johns Hopkins study found that doctors shown the bill for lab tests ordered fewer of them, cutting expenditures 9.6%.

"Most medical care is delivered in a cost vacuum," says co-author Leonard Feldman. "Information helps providers be more cost-conscious."

Here are other ways in which greater awareness of prices can promote healthy savings for you.

Prescription for savings

Health care: To better weigh costs, check if your insurer lets you compare provider pricing. And to get your doctor thinking about your outlays, ask him or her whether less expensive treatments or fewer tests will suffice.

Investing: A new study finds the hidden cost of mutual funds' trades runs to 1.4% of assets annually, more than the stated expenses of the average fund. Best deals: midsize and smaller funds trading less than 60% of holdings a year, says co-author Roger Edelen of the University of California at Davis.

Related: Best advice now for saving and spending

Travel: Fees can add 5% or more to a hotel's rate, says New York University's Bjorn Hanson.

The latest gotcha: a charge to park in the front lot. Ask about fees beforehand, note the rep's name, and refer to it if surprises pop up later.

First Published: June 27, 2013: 4:21 PM ET

15.30 | 0 komentar | Read More

U.S. curbs Bangladesh trade privileges

A Bangladeshi man cries for a missing relative, believed to have died in the rubble, after an apparel factory building collapsed and killed over 1,100 workers in April.

WASHINGTON (CNNMoney)

The government said it would no longer allow duty-free imports of certain products made in Bangladesh under a program that helps encourage trade with developing countries by providing breaks on tariffs.

The trade decision comes as Bangladesh is facing mounting international pressure to improve working conditions after a series of fatal fires last year killed hundreds, and a building collapse in April killed over 1,100 workers. Almost all of the accidents have happened in its apparel industry. Bangladesh is the fourth largest exporter of clothes to the U.S., behind China, Vietnam and Indonesia.

However, the U.S. decision isn't expected to affect clothing imports, because apparel isn't covered under the duty-free program.

Related: Bangladesh: Cheap clothes lead to danger and tragedy

The program is part of a global effort overseen by the World Trade Organization and applies to imports from developing countries. Thursday's curbs is likely to affect imports of tobacco products, sports equipment, china and plastic products from Bangladesh, according to the country's embassy.

In 2011, the U.S. imported $26.3 million worth of goods that got duty free breaks under the program, according to trade records. That's less than 1% of the more than $4 billion of Bangladesh exports to United States.

"While (it) doesn't cover garments from Bangladesh, it's still important to U.S. companies purchasing goods from Bangladesh under the program, such as ceramics and dinnerware," said Daniel Anthony, research director at the Coalition for GSP, an advocacy group for the program funded by U.S. companies and associations.

The government of Bangladesh described the development as "unfortunate."

"While Bangladesh is absolutely respectful of a trading partner's choice of decisions, it expresses its deep concern that this harsh measure may bring in fresh obstacles in an otherwise flourishing bilateral trade," the Ministry of Foreign Affairs said in a statement.

Related: Why I'm protesting against Gap over Bangladesh

The U.S. program granting duty free status to developing nations was already set to expire July 31.

The program can be extended only if Congress acts by the deadline, which doesn't look likely so far, according to congressional aides and lobbyists.

In 2011, Congress renewed the program retroactively. But the dire budget situation combined with forced spending cuts could reduce enthusiasm for a trade program that eats into U.S. revenue.

Labor unions have been pushing the Obama Administration to respond to labor and safety problems in Bangladesh.

"The AFL-CIO hopes that the suspension of benefits will be a catalyst to accelerate an effective process involving the government, employers and workers of Bangladesh to achieve these goals," President Richard Trumka said in a statement.

Bangladesh is among more than 120 countries that gets tariff breaks under the program, known as the U.S. Generalized System of Preferences.

Related: Bangladesh pay hike would cost shoppers only pennies

"I have determined that it is appropriate to suspend Bangladesh's designation as a beneficiary developing country under the GSP program because it is not taking steps to afford internationally recognized worker rights to workers in the country," President Obama wrote in the proclamation.

Bangladesh's working conditions are also in the spotlight in Europe. The European Union is considering a move to revoke Bangladesh's duty free privileges also on clothing, which could really really hurt the country.

Apparel is Bangladesh's top business and makes up 80% of exports. The average worker in the garment industry in Bangladesh makes between 10 and 30 cents an hour, and many of the factories do not have windows, fire escapes or emergency exists, according to labor rights activists.

The Bangladeshi government has turned a blind eye to working conditions in an effort to entice retailers with low costs. International governments are now amping up the pressure hoping that Bangladesh will step up its vigilance over its country's factories.

-- CNNMoney's Emily Jane Fox contributed to this story.

First Published: June 27, 2013: 3:42 PM ET

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Sallie Krawcheck on trusting Wall Street again

Sallie Krawcheck, former investment bank executive, just bought a network for professional women, 85 Broads.

(Money Magazine)

Can investors trust Wall Street again?

If we mean by "Wall Street" large financial institutions, I'd say that they are no doubt safer today than before the Dodd-Frank law and the new financial regulatory changes, but it is still unclear whether they can make it through a significant downturn like we had in 2008.

If we mean financial advisers, in my experience running Smith Barney at Citi (C, Fortune 500) and then Merrill Lynch, I found that the vast majority of them are good people, looking to do good things and committed to building long-term relationships with their clients. You know, the cartoon representation of so many of them as short-term-focused is wrong.

For example, back in 2007 and 2008, Citi had sold some financial products that we believed would only go down a few cents in a bad market, but which actually [lost most of their value]. Instead of reading investors the fine print, the advisers pounded the management team to partially reimburse their clients for our stupidity. I advocated for that too, the bank eventually relented, and I subsequently lost my job.

Many of the people who were on Wall Street in 2007 and 2008 are still there making big money. How is that possible?

A number of people lost their jobs at Citi, including the CEO, the head of the corporate investment bank, desk heads, and traders.

Related: 101 ways to build wealth

Is Wall Street getting any better at managing risk to avoid catastrophe?

Everybody's learned something, but are we going to have the breakthrough to reduce risk in the system? There's a reason crowdsourced problem-solving works: You put a problem to groups who have different experiences, and they'll often solve dilemmas that the experts couldn't. The chemists solve the physicist's problem.

Part of me wants to open-source bank risk so that we have some sharp college kids in some corner of the world trying to solve it, as opposed to the same folks with the same tools. It sounds fanciful, but there is not a tremendous amount of new thinking on these issues of risk. The problem is, banks will never allow positions or performance information to be made public.

What's the next financial risk out there that people don't broadly recognize?

The first one I would point to is bond funds. There is still an incorrect but widely held view that you don't take particularly big losses on bonds unless there's a credit issue. [This is true only if you can hold to maturity.] Bond funds are different. If the economy gets better and interest rates increase, bonds may suffer losses. There's going to be some surprise out there.

Related: Are we at risk of another banking crisis?

You've also raised concerns about money-market mutual funds.

The funds do take on risk. It's a $2.6 trillion market. Lots of individual investors participate. They believe it's cash, in part because the brokerage system puts it into CASH on their statement. And they redeem 100¢ on the dollar in good markets and bad.

But back in 2008, a money-market fund "broke the buck" [couldn't redeem for 100¢]. If we learned anything in the downturn, implicit guarantees not backed by capital are very bad things. What worries me about money funds is managers who take on more risk just to get a tiny bit more return. It's not worth it.

Do you believe high-speed computerized trading gives Wall Street an unfair advantage over individual investors?

It's faster. I would make sure to worry about first things first and second things second, and last things last.

So first things first. How do I want to live? How much money do I need to do it? Can I reasonably get there? Then you've got to go to second things. Do I have the right portfolio to get me there? Am I properly diversified? Third things: Are you in a mutual fund that has an average management fee of 1.2%, 1.3%, when you could be in an ETF that has an expense ratio of 0.3%?

Once you've done all that, then let's start to talk about the fractions of pennies that the institutional traders are getting over individual investors. Most individuals really shouldn't be trading often anyway.

Related: Money-market funds aren't as safe as you think

What about the "flash crash," when computers seemed to cause the Dow to briefly plunge 9%.

It was very scary, but the good news was that there was not a tremendous amount of money lost by individual investors.

You first built your name as a stock analyst covering Wall Street. A MONEY reader asks whether banks are a decent investment yet.

Today the markets feel fine, right? The economy feels good enough. If the economy and the markets are in good enough shape, overall banks will be in good enough shape.

One caveat: Individual banks are difficult to analyze. They're very complex. Even when they give out 100-plus pages of 10-K and 10-Q disclosure, it is really impossible to know what's on their balance sheet at any point in time because the banks' individual loans and trading positions can change quickly between earnings reports. And as we've learned, idiosyncratic accidents do happen.

So my advice is, if one wants to invest in financial institutions, own a group of them, or an ETF that owns them, rather than individual banks. That's what I do.

Related: Best advice now for getting richer

You've talked about banks alienating customers with high and hidden fees. Why do they do it?

Banks, having had their earnings reduced, are doing what companies do: looking to replace earnings.

What new fees should bank customers expect?

It's well known that if you transfer a credit card balance, you can get a low teaser rate that will then move up. What is less understood is that when you give a deposit to a bank, there can be a teaser rate that is later taken down.

In this low-rate environment, the numbers are not large. But if you look for a future fee stream, it would be that. The average checking-account agreement is, I believe, 111 pages. You can find the formula for how the leap year affects the calculation of your interest payment. It's harder to figure out the rate they'll actually pay.

First Published: June 26, 2013: 4:13 PM ET

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Coming soon to Windows: 3-D printing

Microsoft's Windows 8.1 will support plug-and-play for 3-D printers.

SAN FRANCISCO (CNNMoney)

Among the many big Windows 8.1 announcements on Wednesday, 3-D printing isn't one that will immediately resonate with most users. But it is sure to excite the growing contingent of designers, "makers" and early adopters, as millions of PCs will suddenly have native support for 3-D printing.

Although you've always been able to connect a 3-D printer to a Windows PC, many 3-D printing apps require you to craft your designs inside the app or spend time translating your creation into a format the printer software can handle.

But Windows 8.1 will feature plug-and-play support for 3-D printers. Much like you can plug in a standard printer, go into any number of Windows apps, click the file menu, and choose to print a document, Microsoft (MSFT, Fortune 500) will soon allow you to do the same with 3-D renderings and 3-D printers.

Related story: Stratasys buys Makerbot for $400 million

No 3-D printer companies currently support plug-and-play on Windows 8.1, but after Microsoft's latest operating system is released during the holiday season, Microsoft expects that a number of 3-D printers will take advantage of the feature. At the Microsoft Build developers conference in San Francisco, Microsoft showed off a proof-of-concept demonstration.

Given that Windows is still the world's most used PC operating system, Microsoft's announcement serves as a huge validation for the 3-D printing movement and a crucial step towards making 3-D printing easier and more accessible. Nothing made that more clear than the announcement that the MakerBot Replicator 2 3-D printer will now be available in select Microsoft stores.

"Wiill 3-D printing go mainstream? We think so -- which is why we've built it into Windows," wrote Shanen Boettcher, general manager of Microsoft's startup business group, in a blog post.

First Published: June 26, 2013: 4:45 PM ET

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PayPal to launch inter-planetary payment system

PayPal is getting serious about space payments.

NEW YORK (CNNMoney)

It sounds like a PR stunt, but PayPal is dead serious about getting into the burgeoning field of space tourism. With companies like Virgin Galactic and Space X bringing the go-to-Mars dream much closer to reality, PayPal said its goal is simply to start thinking about the complicated issues concerning space commerce.

"We don't have all the answers right now, but it's clear we won't be using cash when we're in space," PayPal president David Marcus told CNNMoney. "We feel it's time now -- not next year, not when [space tourism] starts to happen -- to start figuring out what this looks like."

The PayPal Galactic initiative will launch later on Thursday at a splashy press conference featuring astronaut Buzz Aldrin.

EBay-owned (EBAY, Fortune 500) PayPal is partnering with two leading groups, the Search for Extraterrestrial Intelligence (SETI) Institute and the Space Tourism Society, to answer "the big questions around the commercialization of space."

Space commerce could force a major evolution of all of the entities that touch payments: banking systems, risk and fraud management, regulatory concerns and more. What will be the default currency in a cash-free space system? Who will provide customer support?

Related story: Crowdfunded telescope puts your photo in space

Those questions need to be solved if space tourism is to become a viable business, Marcus said.

"It's easy to perceive this as kind of gee-whiz, even silly, if you just read the headline," he said. "But these are real, difficult, important problems that need to be sorted out."

Those solutions need to come quickly, as casual space travel is much closer than the average consumer might think, said SETI Institute chairwoman Jill Tarter.

"When you talk to the space community -- the people who are actually making this happen -- it doesn't feel pie-in-the-sky to them at all," Tarter said. "Within a few years we are going to have more people off the surface of this planet more often, and we'll have to determine value in that new environment."

To help speed that move to space, PayPal is also launching a crowdfunding campaign on the site FundRazr to raise money for the SETI Institute and its research.

First Published: June 27, 2013: 12:12 AM ET

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The Fed may kill bank stocks

Ever since Bernanke hinted that the Fed may trim back on its bond purchase program, financial stocks have declined in line with the broader market, but their performance could begin to worsen.

NEW YORK (CNNMoney)

Financial stocks are the "single worst performers" during stock market corrections that are caused by shifts toward tighter Federal Reserve policies, according to Barry Knapp, chief equity strategist at Barclays.

Last week, Fed chief Ben Bernanke laid out the details about when and how quantitative easing would end.

The stock and bond markets have sold off sharply. Knapp said the pullback is likely to continue as investors adjust to the move towards more normal Fed monetary policy. And he believes history will repeat itself. Banks should suffer the most.

Ever since Bernanke first hinted last month that the Fed may trim back on its bond purchase program, Citigroup (C, Fortune 500) and Bank of America (BAC, Fortune 500) are down about 10% while the broader market is off about 4%.

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Knapp analyzed the performance of the broader market and individual sectors during the most recent periods when the Fed raised interest rates: 1983, 1994 and 2004. He noted that financials consistently lagged the broader market.

On average, financial stocks lose about 9% during Fed-induced corrections, about 1.5 percentage points more than the broader market.

Related: Bonds in the bargain bin

It makes sense for bank stocks to fall under severe pressure if the Fed is shifting its policy. After all, they have outperformed the overall market by such a wide margin. But the main reason banks get hit the hardest is because their business is "clearly sensitive to interest rates," said Knapp.

Although Bernanke has stressed that the Fed is likely to keep short-term rates low until 2015, long-term bond yields have surged as investors anticipate a slowing of asset purchases by the Fed. So Fed tapering is being viewed by investors as a form of tightening.

That's bad news because higher interest rates can lead to heavy losses in the bonds that the bank already holds.

And while the recovering housing market has been helping propel stocks higher, Knapp says it may not be strong enough continue supporting banks. Higher interest rates could trigger a spike in mortgage rates and slow the pace of new home loans.

The 30-year mortgage rate has already risen to nearly 4%, up from 3.35% at the start of May. While that is still low by historical standards, it's trimmed about $12,000 off of an average buyer's purchasing power.

Investors also seem to be worried that the Fed's decision to take away the "stimulus-filled punch bowl" is premature. It could punish the sectors that stand to gain the most from an economic recovery, such as financials.

Knapp is particularly worried about the banks this time around because even if the Fed is able to shift its monetary policy without denting the economy, the regulatory environment for banks remains cloudy.

Investors are still struggling to figure out how the implementation of new rules that were part of the Dodd-Frank reform law will impact banks. There are also calls for higher capital requirements for banks around the world. For those reasons, Knapp thinks investors should not have a huge position in financial stocks.

First Published: June 26, 2013: 5:53 AM ET

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With new TVs, size matters

TV sales were on fire a few years ago, but now they're bottoming out.

NEW YORK (CNNMoney)

After falling 3% in 2012, U.S. LCD TV sales dropped another 11% in the first quarter of this year, according to technology consultancy IHS.

Few saw this coming just a couple of years ago. TV sales were booming as recently as 2010, when consumers were replacing their old tube sets with flat screen LCD TVs. But by 2011, two in three households in America owned at least one HDTV. That's when television sales start to hit a wall.

The trend is playing out globally, as well. Worldwide TV sales dipped by more than 6% last year and they aren't expected to return to 2011 levels until 2015, IHS has forecast. In the United States, that recovery isn't expected to happen until after 2017.

Desperate to find a TV technology that will get consumers to upgrade again, manufacturers have thrown the kitchen sink at the problem. Over the past several years, they have tried adding Internet connectivity, 3-D and ultra-high definition to their sets, but consumers have met those features with a sizable yawn.

Related story: Apple TV adds HBO Go and WatchESPN

TV manufacturers sold just 33,000 ultra-high definition "4KTVs" last year, and IHS predicts fewer than 1 million will be sold this year. To put that in perspective, IHS expects that about 37 million LCD TVs will be sold in the United States this year overall.

Television buyers have shrugged off 3-D features too. By the end of last year, only about 20% of all LCD TVs sold had 3-D capabilities. Just 14% of consumers said they expect to expect to buy a 3-D TV for their next purchase, according to a recent NPD survey.

Seeing the writing on the wall, Disney (DIS, Fortune 500) yanked its highly touted but poorly watched ESPN 3-D TV network earlier this month.

"TV manufacturers were very excited about 3-D three years ago, because they had hopes that it would help consumers refresh the primary screen in their homes," noted Ben Arnold, NPD's director of industry analysis. "Obviously, that hasn't happened."

So if none of the gimmicks have worked, what can drive sales of new TVs?

"The feature driving purchases today is size," said Veronica Thayer, TV systems analyst at IHS.

Focusing on bigger screens is a back-to-basics approach that easily resonates with consumers. Sales of super-sized LCD TV sets (televisions with screens larger than 50 inches) grew by 50% and made up more than a quarter of U.S. LCD TV shipments in the first three months of 2013 -- up from 15% a year earlier, according to IHS.

"Size is very easy to communicate to customers," noted Arnold. "Internet connected features are a difficult thing to explain and harder to sell at retail."

Adoption of streaming services directly on televisions has been pitiful so far. Most people continue to watch Netflix (NFLX), Hulu and other services on their laptops, or via a video game console or set-top box like Apple TV or Roku.

Related story: Apple needs the iTV soon

But the focus on big TVs has ironically helped boost sales of the very features manufacturers have been desperately trying to sell over the past three years.

3-D television set sales are up about 5%, in the first quarter. Giving up on selling 3-D as a standalone feature, manufacturers have begun including 3-D as a built-in perk of bigger sets. Internet-connected TV sales are growing at a similar clip for the same reason.

Sales of big TVs might be giving 4KTV a boost too. IHS expects sales of the ultra high-definition televisions to triple next year and reach nearly 21 million in 2017 -- more than half of the market.

So if bigger and bigger TVs can boost sales for TV manufacturers, the industry may not have to hold out for the long-awaited but yet-to-be-delivered iTV from Apple (AAPL, Fortune 500) to be its savior after all.

First Published: June 26, 2013: 5:55 AM ET

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Commodities fugitive Marc Rich dead at 78

Marc Rich has died in Switzerland at age 78.

HONG KONG (CNNMoney)

"Marc Rich died in Lucerne in a hospital as a result of a brain stroke," Christian König, a spokesman for Rich, said in a statement.

Born in Antwerp, Belgium, in 1934, Rich made his name in the oil market and is often credited with the creation of modern oil trading.

Rich, one of the industry's most colorful personalities, fled the United States in 1983 after being indicted for tax evasion, false statements, racketeering and illegal trading with Iran.

Following his indictment, he would become one of the world's most famous white-collar criminals.

But his business career continued, and Rich managed to build a commodities-trading empire while on the lam in Switzerland.

The company he founded there would eventually become Glencore, one of the world's most profitable companies.

Ivan Glasenberg, CEO of the recently merged Glencore Xstrata (GLCNF), said in a statement that he was "saddened to hear of the death of Marc."

"He was a friend and one of the great pioneers of the commodities trading industry," Glasenberg said. "Our deepest sympathies and condolences are with his family at this time."

Rich's eleventh-hour pardon was extremely controversial, and launched a set of congressional inquiries into actions taken by the Clinton administration.

Prison exclusive: Bernard Madoff can't sleep

Before the pardon, Rich's wife made a series of donations to support Democratic Party causes. Critics suggested that the donations and the pardon were connected.

In recent years, Rich, who remained extremely wealthy, was reportedly caught up in the Ponzi scheme run by Bernard Madoff.

According to the New York Times, Rich lost between $10 and $15 million he had invested with the firm.

First Published: June 26, 2013: 6:28 AM ET

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China canal project in Nicaragua has investors

Nicaraguan President Daniel Ortega and Wang Jing of HKND Group.

HONG KONG (CNNMoney)

Telecom executive Wang Jing told reporters in Beijing that work should start on the canal by the end of 2014 and finish within six years.

Lawmakers in Nicaragua granted a 50-year concession earlier this month to Wang's privately held HKND Group to build the canal, which will stretch three times the distance of its Panamanian counterpart.

The proposed passage through Nicaragua would be wider that the Panama Canal, and could leave the country well placed to capitalize on a predicted rise in global shipping over the next 20 to 30 years.

Even with its current expansion, the Panama Canal will still be too small to accommodate the world's largest container ships.

In addition to the canal, HKND has won rights to build a railroad, two ports, an international airport and an oil pipeline.

It is not clear how the group intends to finance the canal's construction, which carries a reported price tag of $40 billion.

Wang said Tuesday that fundraising is "going very well so far." But he declined to name any investors, saying instead that more information will be provided "when the project reaches different phases."

Nicaragua has long attracted ambitious businessmen, politicians and governments hoping to build a canal. So far, all efforts have fallen victim to a lack of funding or the country's complicated politics.

Related story: China and Europe risk trade war

Many observers are deeply skeptical of the project's viability. Wang has no apparent experience with large infrastructure projects, and little is know about HKND's governance structure.

Wang denied any ties to the Chinese government or military on Tuesday, saying the project is entirely independent. Pressed about his background, Wang said that he studied Chinese medicine before pursuing a career in business.

"I am an average Chinese citizen," the CEO said.

T.L. Yip, an assistant professor at Hong Kong Polytechnic University, said that the project is technically viable and not unrealistic.

Beijing is eager, Yip said, to secure energy supplies, and a canal in Nicaragua would provide an additional avenue for trade between China and key trading partners like South Africa.

"From China's point of view, they would like to see an alternative to the Panama Canal," Yip said. "This could be very important for Beijing."

President Daniel Ortega and his Sandinista government have portrayed the project as an economic boon for Nicaragua, which is the poorest country in Central America and second poorest in the Western Hemisphere. The country is highly indebted and unemployment is rampant.

Ortega faces domestic opposition over the project. The Movement for Nicaragua, a coalition of community groups, has already objected to the proposed construction.

"Nicaragua isn't for sale. Nicaragua belongs to all Nicaraguans and isn't the private property of Ortega and his family," the group said in a statement.

-- CNN's Dayu Zhang contributed reporting.

First Published: June 26, 2013: 12:11 AM ET

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Mexico eyes China as new tequila market

Some high-end tequilas such as Jose Cuervo, Herradura, Patron and Don Julio will be largely launched in Beijing, Shanghai and Hong Kong by the end of the year.

NEW YORK (CNNMoney)

The two countries agreed to increase tequila imports from Mexico when their presidents met earlier this month.

"We are expecting to export 10 million liters of tequilas to China in five years, and make China the second largest market after the United States," said Francisco Soltero Jimenez, general manager of Mexico's national tequila industry association.

Until recently, China restricted imports of foreign liquor that exceed 2 grams of methanol per liter, citing harmful health effects. Most high-quality tequila -- made with 100% agave -- contains more methanol than the limit. Consequently, high-grade tequilas have been largely unavailable to Chinese drinkers.

Last year, Mexican tequila makers exported 410,000 liters of lower agave tequila into China.

But China recently reassessed tequila's risks and found that tequilas with more than 2 grams of methanol per liter don't pose any harmful health effects.

Mexico currently exports tequila to more than 100 countries, but nearly 80% goes to the United States, according to Mexico's national tequila industry association.

China consumes 5 billion liters of spirits every year, led by cognac, whiskey and vodka. Drinking has been a long-standing part of Chinese culture, especially during business banquets. And tequila's flavor profile is similar to traditional Chinese wine, a strong drink.

Related: Tequila! But not for spring breakers

Looking for new growth opportunities, Mexican producers are studying the spirits, culture and customs of the nearly 300 million Chinese upper-middle class consumers.

"We will have more promotions in Beijing, Shanghai and Hong Kong," Jimenez said. "Some high-end tequila such as Jose Cuervo, Herradura, Patron and Don Julio will be largely launched in China by the end of the year," he said.

The 100% agave-based tequila will cost approximately $40 to $60 per bottle including import tax, according to Jimenez.

In the long run the tequila market in China could be even larger than in the United States because there are more Chinese with disposable incomes, said Christopher Shanahan, food and agriculture manager at Frost & Sullivan, a U.S. marketing analysis firm.

Tequila makers are trying to encourage China's growing new rich to buy the alcohol by leveraging its mystique and novelty, Shanahan said.

"There has been significant growth in food services and restaurant sales on top of grocery sales in China," Shanahan said. "And the Chinese market likes foreign prestige brands. These are indicators that tequila will be popular in China."

Major foreign brands that have launched in China almost all experienced significant growth, Shanahan said.

"Chinese consumers want to spend money on luxurious and unique foreign products to increase their social standings in a fashionable way. Tequila is one of many products that will become part of the equation," Shanahan said.

First Published: June 26, 2013: 2:12 AM ET

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Betting on the royal baby

Prince William and the Duchess of Cambridge are due to welcome their first child in July.

NEW YORK (CNNMoney)

It will also be a chance for some people to win big money.

As Prince William and the Duchess of Cambridge prepare to welcome their heir in mid-July, thousands of people are betting on when the royal bundle of joy will arrive, what its name will be and whether it will have its Uncle Harry's signature ginger hair.

William Hill, one of the world's biggest online betting sites, has already taken in more than £20,000 in bets, according to spokesman Rupert Adams. The vast majority of bets average less than £1.

"Obviously the closer we get to the big day, the more interest we will see," Adams he said. He expects the most money to be bet on the baby's name, followed by its size and the birth date.

Related: The $380 million royal baby bump

So far, Alexandra is the favorite with 5/2 odds. Diana and Elizabeth, for Prince William's late mother and grandmother, trail close behind.

A small few could win big if William and Kate go with dark horse choices Waynetta or Chardonnay. Odds are at 500/1 and 250/1, respectively.

Most of the royal gamblers think the couple will have a teeny tiny brown-haired princess, but the odds are split between which royal will carry the future queen or king out of the hospital.

Related: Online gambling toes a confusing legal line

Adams is just hoping that the name is kept secret, unlike when Prince William was born. He said William Hill got taken to the cleaners in 1982, when the prince's name leaked three days before he was born. They lost nearly £10,000 as the price plummeted from 33/1 to 3/1. They paid out £30,000 total around his birth.

But try as they might, Adams thinks royal snoops are unlikely to unearth the name early this time around.

"The news they were engaged did not leak, so they must run a very tight ship."

First Published: June 26, 2013: 2:13 AM ET

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