Watson Pharmaceuticals in Talks to Buy Actavis Group hf

A report released this week revealed that Watson Pharmaceuticals Inc. is working on the acquisition of Actavis Group hf, a Swiss generic drug manufacturing company. The purchase could cost Watson Pharmaceuticals up to 5.5 billion euros, or $7.3 billion. Shares in Watson Pharmaceuticals jumped 8.8 percent following the news of this potential acquisition. This is the largest one day increase in three and a half years. Watson currently manufacturers a generic version of Pfizer’s drug Lipitor, one of the most commonly prescribed drugs to lower cholesterol.

The purchase of Actavis would boost Watson’s presence in Europe and create additional exposure opportunities in the U.S. as well. This information was relayed to JPMorgan Chase & Co. clients by one of the company’s analysts, Chris Schott. Schott believes that Watson Pharmaceuticals’ stock will outperform its peers over the next six months to a year.

Watson Pharmaceuticals has been in the market for either a brand name or generic drug manufacturing company since January. CEO Paul Bisaro stated that he’s interested in expanding Watson’s reach on an international level along with increasing the company’s portfolio of brand name drugs.

Last year, Activis CEO Claudio Albrecht said he was considering either going public and offering an IPO or perhaps looking at a merger some time within the next three years. The company currently manufacturers approximately 850 drugs, including injectables, creams, tablets and capsules, and has about 350 additional products in development. They reported approximately 1.9 billion euros in sales and had more than 300 million euros in earnings for 2011, according to Schott

Schott also stated that antritrust laws should not be a problem during this acquisition because there is very little overlap between Watson and Actavis’s European business and although their U.S. business does overlap, it should not pose a problem. There are currently no other interested parties, so an agreement could be reached in a matter of weeks.

Zynga to Buy Draw Something Creator

Online app creator Zynga Inc. is set to acquire OMGPOP Inc., another application development company for $200 million. OMGPOP is the creator of the popular Draw Something app in which players draw a word or phrase and their friends try to guess what it is they drew using a bank of letters. The game currently has 22.4 million Facebook users who play at least once a month and is available as an app for iPhone and Android smart phone users. The mobile app is currently the most popular app in Apple’s App Store.

After raising $1 billion in December for their IPO, Zynga is increasing acquisitions even more in an effort to lessen its reliance on Facebook, which takes 30 percent of all virtual goods sold through Zynga’s apps. Zynga also launched Zynga.com, an online hub for its games that does not rely on Facebook, earlier this month. The company spent nearly $150 million in 2010 and 2011 to acquire 22 separate companies.

Goldman Sachs's Value Drops After Op-Ed Story

Goldman Sachs Group's market value plummeted more than $2 billion following an employee's criticism of CEO Lloyd C. Blankfein's management. This accusation, as well as one regarding the how the firm treats clients, was revealed  by Greg Smith in an op-ed New York Times piece. Shortly after the article was released, shares dropped 3.4 percent. Even after the ending the day $4.17 lower, shares are still up a total of 33 percent for the year. Smith also stated that he was leaving the company after 12 years because of the "decline in the firm's moral fiber," that he blames on Blankfein and Goldman Sachs President Gary D. Cohn.

Blankfein and Cohn released a memo to both current and former employees stating that Smith's accusations are untrue. An e-mail was also sent out stating that the firm disagrees with Smith's views. Other than these two correspondences, David Wells, spokesman for Goldman Sachs, declined to add any further comments. The company was recently ordered to pay $550 million for the settlement of a fraud lawsuit with the SEC.

The article has spread through the investing community like wildfire, although employers are telling their employees not to forward this information on to clients. Despite this inflammatory op-ed piece and the SEC lawsuite, Goldman Sachs has won more business than of its competitors last year, according to data compiled by Bloomberg.

Claims that Goldman Sachs is becoming increasingly profit-driven were met with indifference. Founder of T2 Partners LLC, Whitney Tilson, stated that it isn't a surprise that the bank is profit-driven and some of its employees use vulgar and sometimes disrespectful language, but adds that the news is far from headline material. Several former Goldman Sachs managing directors and partners agreed with Smith's accusations regarding client treatment under the current management, but added that as a junior employee, Smith may have been upset about his career or his pay.

Anthera Stock Falls After Drug Trial Ends

The price of stock in Anthera Pharmaceuticals Inc. fell 52 percent after the company announced the cancellation of late-stage trials for an experimental treatment for heart disease. Anthera’s treatment, called Varespladib, was supposed to work in conjunction with cholesterol-lowering medications to prevent the recurrence of acute coronary syndrome, however, in a statement released on March 9th, Anthera instructed investigators to remove all patients from the therapy.

Stock prices rose 2.4 percent in the past year, but fell quickly following this news. By 12:45 EST on Monday, Anthera’s stock was down 47 percent to $3.41, although it dropped to $3.08 earlier in the day. Anthera has a second drug, Blisibimod, currently undergoing clinical trials. Blisibimod is a treatment for systemic lupus erythematosus and is currently in the second stage of testing. Even if this drug is successful, it may not be enough to boost Anthera’s stocks significantly because the market for lupus treatments is much smaller than the market for heart-related conditions.

Investing Tips

There are no one size fits all tips for investing. Each aspect of an individual's life needs to be taken into consideration when developing an investment plan to ensure the best results for that individual or family. Although the investing tips are not universal, the questions everyone should ask to develop the investment plan that is right for them are.

You'll want to set goals for your life before you develop an investing plan. Determine where you want to be and start working toward that goal every day. Once you've established your goals, take a look at where your income is going each month. Develop a spending plan so you can start saving and investing some of your income. The goal here is to spend less than you make, so if you are consistently overspending, consider switching to a higher paying job if possible or cut expenses.

A final tip for those wishing to invest is to make the most of your employer's contribution. Many employers will match at least a portion of the money you put into your retirement plan, so find out what your company's cap is and invest at least that much to take advantage of the free money your employer is offering.

Investing in Commodities - Is it Worth the Risk?

If you've never considered investing in commodities before, you may want to think about it. Investing in these tangible goods, including oil, gold and corn, will diversify your portfolio and could protect you against inflation. While it's highly impractical to buy barrels of oil or hundreds of ears of corn and store them somewhere, there's a new option for individual investors who want to break into the commodities market.

Exchange traded products (abbreviated ETFs) work in one of three ways. The first type of ETF purchases commodities and stores them for its investors. They provide the necessary security and storage space for the commodities so you odn't have to.

The second type of ETF buys future contracts for commodities. These contracts promise a specific amount of a certain commodity at a future date for a specific price. The price is what the commodity is predicted to be worth at that future date, not what the commodity is worth today. When investing in commodity futures, it's important to keep in mind that the price is the future commodity worth and not the spot price, or what the commodity is worth today.

The final type of ETF invests in companies that are focused on commodities. This type of commodity investing is indirect, as there are no commodities of any time involved in the investing. ETFs that invest in commodity-focused companies allow investors to gain exposure to gold prices without actually getting involved in the spot prices or future prices of gold.

Anyone that is considering investing in commodities needs to keep in mind that while the reward has the potential to be substantial, commodity investing is a gamble. Commodities are only worth what other investors will pay for them, which means you could invest in a specific commodity only to find out that investors aren't even willing to pay what you did.

Clean Up with Retail Stocks

Although the recession is far from over, plenty of positive indicators show the U.S. economy is on the road to recovery. If you find yourself with some extra cash and you're unsure what to do with it, you may want to invest all or some of it in the stock market. The various stock indexes have displayed a steady, albeit sluggish, rise in recent month and as the economy continues to improve, the indexes will rise even higher.

While not all stocks are performing equally, many retail stocks have shown considerable growth in the last year. Clothing sales increased by 6 percent in 2011 and mail order sales rose by more than 12 percent. Keep in mind that all retail stocks are not responding equally, some stocks, including Abercrombie & Fitch and Coach are still in a slump, while others, including Dollar Tree, Macy's, Ralph Lauren and Limited Brands have all increased by at least 25 percent since the beginning of 2011.

Trading with Charlie Ditkoff at BAML

Bank of America Merrill Lynch (BAML) maintains a sophisticated investment and trading platform. Charlie Ditkoff, the firm’s Vice Chairman of Corporate and Investment Banking, can offer clients a vast array of products, services, and approaches to investing and trading, enabling them to build portfolios customized to their needs. With the company’s state-of-the-art technology, Mr. Ditkoff also can provide mobile investing and trading and online access to BAML’s global research, which garnered the company a number one ranking from Institutional Investor magazine in 2011.

Charlie Ditkoff and BAML assist clients in identifying their financial goals and in creating investment strategies to pursue them. The Merrill Edge Advisory Center offers access to diversified portfolios, top research and insights, and a range of products. The firm’s pricing structure includes no annual fee and 30 monthly ETF and online equity trades at no cost in most circumstances. In addition to cash management and custodial accounts, products include retirement and college accounts, stocks, mutual and exchange-traded funds, fixed income products, options, and annuities.

Through the Merrill Edge Advisory Center, users can invest and trade on their own or with professional guidance from BAML advisors. Once an individual opens and funds an account, he gains access to the various products as well as detailed research on each item. Clients also can get quotes; monitor watch lists; and research Roth IRAs, annuities, and other offerings online or with a mobile device. Those utilizing advisory services receive assistance in tweaking their portfolios to remain in line with their goals, time restrictions, and risk tolerance.

Precious Metals, Stock Prices Fall After Bernanke's Report

Ben Bernanke, Fed chairman, delivered his semiannual report on monetary policy earlier today. Bernanke implied that the central bank is not contemplating any additional measures to bolster the economy, stating that the Fed "expected the subdued level of inflation to persist beyond this year." Although some people are worried about the recent spike in oil prices, Bernanke states the increase is most likely temporary, though it could affect consumer spending in the short term.

Bernanke added that the decline in unemployment from 9.1 percent in August to 8.3 percent in January was a bit incongruous with the pace of current economic growth. He believes continued growth in the job market will be dependent on spending and consumer demand for products. Many people were expecting Bernanke to report plans for additional stimulus packages even though the economy is slowly improving.

Following this news, gold futures for April delivery fell to $1,730 an ounce — a drop of 3.3 percent. If gold futures close at or below this price, it will mark the largest drop in more than two months. Silver prices also declined more than 5 percent to prices last seen two months ago in response to Bernanke's testimony before Congress. Prior to Bernanke's report, gold prices rose 2.8 percent and silver prices were up 12 percent in February.

  The stock market was not affected as strongly, however several stocks fell slightly this afternoon once news of Bernanke's report reached the U.S. The Standard & Poor's 500 fell one tenth of a percent, though the index is still 4.5 percent higher for the month. The Dow Jones Industrial Average also fell one tenth of a percent, or 9.35 points as did the Nasdaq Composite Index.

  These declines are not catastrophic, nor are they indicative of how trading will close out today, but they are a reflection of the general population's reaction to Bernanke's news.

Tax Lien Certificates: Are They Worth It?

Tax lien certificates sometimes offer as high as an 18 percent return, but anyone choosing to invest in them as a way to earn easy money should be cautious. Counties levy tax liens on properties that have outstanding property taxes. The liens are auctioned off to investors and the money raised is used to pay the past-due taxes. Once the owner can afford to pay the taxes, as well as interest and any fines or penalties due on the property, the money is sent to the holder of the tax lien certificate.

The tax lien certificate system is a win-win as far as the county and the homeowner are concerned, because the homeowner has additional time to gather the money needed to pay the taxes and the county gets its tax money, which is used to fund schools, emergency services and roadwork.

In the event the homeowner can't pay the back taxes, the investor who holds the lien certificate can chose to foreclose on the property or may end up owning the property himself. Herein lies the risk when investing in tax lien certificates. The value and condition of the home is not guaranteed in any way, so the investor may end up with a property that isn't worth what he paid on the lien.

Dow Tops 13,000 for the First Time Since 2008

A sign that the economy may finally be on the upswing appeared today as the Dow Jones industrial average exceeded 13,000 during intraday trading. Dow Jones levels this high have not been seen since the economy took a turn for the worse in 2008. The Dow Jones index trades stock in 30 large companies, including 3M, American Express, AT&T, Coca-Cola and The Home Depot. The day started out with a lull for the Dow, but at 11:24 a.m. Eastern time, the Dow rose to 13,000.64. Although it quickly fell back below the 13,000 mark, analysts are hopeful. The first time the Dow rose above 13,000 was in April 2007 and the last time was in May of 2008, when it hit an intraday high of 13,026.04. When the U.S. began to experience its current economic slump, the Dow reacted accordingly. Some analysts believe the rise is due, in part, to the agreement reached on a bailout package for Greece.

The Standard & Poor's index of 500 stocks also reached a high on Tuesday; trading at 1,365 points, which is 0.3 percent higher than recent months. While not a significant increase, the S&P is a better indicator of market conditions because it measures more of the market than the Dow Jones.

Increases in both stock indexes add supporting evidence to a boost in the U.S. economy. Other evidence includes the report of 243,000 new jobs in January along with the lowest unemployment rates since 2009. With interest rates at an all-time low, and remaining that way until 2014, the housing market is also expected to rebound over the next few years.

The Dow Jones is one of the most frequently quoted stock indexes when discussing the economy and is often used as a barometer to measure the other stock markets. Even though it reached a four-year high today, economists know that it could be down again tomorrow.

Own a Piece of the Empire State Building

Have you ever wanted to own a piece of a national landmark? Well now you can. Empire State Realty Trust Inc. (ESRT), the company that owns the historic building, filed for a $1 billion IPO this morning. The Malkin family, who currently controls ESRT, is offering this IPO in an attempt to simplify its real estate holdings. The IPO allows the Malkins to offer current investors stock in the ESRT.

Two types of stocks will be offered: Class A shares will be sold to the public and Class B stock will be offered to investors and will allow 50 votes per share. The IPO includes the Empire State Building as well as 11 other office properties in New York and Connecticut, comprising 7.7 million square feet of office space. In the IPO prospectus, ESRT stated that the Empire State Building made nearly $158 billion in revenue between January and September 2011. The company earned a total of $71 million in that same time period on a revenue of more than $382 million.

Anthony E. Malkin, who will become the company's CEO and chairman, purchased the building with his father in 2002. Since then, the Malkins have spent millions restoring the Art Deco lobby and putting in new windows, which allowed them to double the rent over the last decade. The next step is to make the building more energy efficient and turn the offices into green spaces.

The 2.9 million-square-foot, 102-story skyscraper is currently home to a variety of tenants, including LinkedIn, the Federal Deposit Insurance Corporation (FDIC) and the Boy Scouts of America. Bank of America Merrill Lynch and Goldman Sachs are the lead underwriters for the Empire State Building IPO.

If you've always dreamed of owning a famous piece of property, now's your chance. Once the IPO is approved, you could buy one or more shares of ESRT stock and own a part of the Empire State Building.

Stock Markets Ended the Week on a Low Note

In light of the turmoil in Greece, all three stock indexes dropped at the end of last week. U.S. stocks rose slightly on Thursday once Greek political parties agreed on a deal regarding the austerity measures, but fell on Friday as eurozone finance ministers stated that the deal was not enough. The Dow Jones and the S&P 500 both fell 0.7 percent, ending the week 0.5 percent down. The Nasdaq experienced slightly higher declines, dropping 0.8 percent on Friday and ending out the week 0.6 percent lower. Despite the declines experienced last week, all three stock indexes are still up for the year, with the Dow Jones up 4.7 percent, the S&P at 6.8 percent and the Nasdaq up 11.5 percent.

The deal is expected to be modified and put before the Greek parliament. If parliament approves the revised deal, a bailout package could be approved this week when the eurozone finance ministers are set to meet again. If this deal is approved, it is expected to allay fears. Hopefully this will result in an increase in all three indexes in the coming week. 

Cracking Down on Insider Trading

The House of Representatives passed the STOCK Act today with a vote of 417 to two. The act aims to cut down on insider trading by Congress members and other lawmakers who are privy to certain political intelligence. The version of the act that passed was a bit weaker than the original act. The main provision that was cut would have required anyone who had access to political intelligence to register, similar to the way lobbyists do, if they want to communicate with members of Congress and the executive branch. The revised act also cut the provision that provided for stricter punishment for officials who take actions while on the job that benefit them directly.

Supporters of the original bill criticized House Majority Leader Eric Cantor for choosing to revise the bill secretly rather than discuss the changes publicly. Despite this criticism, most House representatives voted for the diminished act so that it can move forward to the Senate. There, a conference committee will be formed to hammer out the differences. 

Investing in Your Future

Anyone who is working full or part-time should be considering retirement savings. Starting early is the key to having enough money to live on after you retire. While most working Americans pay money into the Social Security program, the retirement age for Social Security is getting higher and the money you'll actually receive is getting lower, so you really should not count on Social Security supporting you as you get older. There are several different types of accounts you can use to start saving for retirement, including 401(k) and IRA. You could also invest in stocks, bonds or mutual funds as a way to save money for retirement.

If you haven't thought about filing your 2011 tax return yet, you may want to give it some thought, especially if you owe additional taxes to the IRS. For one thing, it's good to know ahead of time how much you owe so you can save up between now and April 15th. The other benefit of figuring out your tax situation now is that you still have until April 15th to deposit money into your 401(k) for the 2011 tax year. Any money deposited into a 401(k) is pre-tax, which means you do not pay income tax on that amount. For example, if you made $50,000 in 2011 and deposited $1,000 into a 401(k), you are taxed on $49,000. Your actual taxable income may be even lower than this depending on the other credits and deductions you qualify for, but this it the maximum you will be taxed on.

After preparing your tax return, you'll know if you owe additional tax money to the IRS or if you're getting money back. If you owe money, there's not too much that can be done to remedy the situation now that the year is over. The only option is make a deposit into your 401(k). If you deposit any additional money into your 401(k) before April 15th, you can apply it to 2011 and potentially reduce the amount of money you owe the IRS.

Amazon.com Stock — Keep or Sell

If you own stock in Amazon.com, you may have noticed that the stock prices have fallen a bit over the last two days. This comes as a result of the fourth-quarter earnings report released Tuesday. The report for the fourth quarter of 2011 stated that the company's revenue was not as high as analysts expected it to be. The Internet retailer did report revenue of more than $17 billion, which is a 35 percent increase, it was about a billion dollars less than analysts had forecast.

The stock, which hit a high of $195.63 on Tuesday, fell to $173.81 by the opening of business on Wednesday. The price wavered throughout the day yesterday, but ended the day at $179.46. You may be wondering if now is the time to sell your stock in Amazon.com. Though the price is still down, it is down less than one percent. The company is expecting to report a loss in the first quarter of this year, but it is still a solid stock that may be worth holding onto. 

10 Dividend Stocks Expected to Outperform

Have you got a little money you're looking to invest? If so, you may find yourself wondering about all the different investment options. There are stocks, bonds, mutual finds and plenty of other places to invest money, but you want the one that's going to yield you the most money. If dividend stocks appeal to you, you may want to check out the top 10 list compiled by The Street, an investment Web site. They published a top 10 list in September 2010 that outperformed the Standard & Poors SPDR Dividend ETF (SDY).

The team at The Street has released a new list of the 10 best dividend aristocrats for 2012. A dividend aristocrat is a list of companies that have experienced an increase in dividends for at least 25 years. They used a list of carefully constructed criteria to ensure maximum yield and minimum risk. Their criteria included having a minimum 10 percent return on investment and a tax rate greater than 25 percent for the last five years. Each stock chosen must have appreciated over the last 10 years. Additionally, every stock that madet he list has a liability-adjusted cash flow yield greater than that of a 10-year U.S. Treasury note and has a quick ration of greater than one.

Among those that made the list are Hormel Foods, 3M and Brown-Forman, makers of Jack Daniels, Finlandia vodka, Southern Comfort and Chambord. The list also includes many companies the average consumer may not be familiar with, including PPG Industries, a company that makes glass, coatings and optical products; Sigma-Aldrich, which sells chemicals and biochemicals; Becton Dickinson, a medical supply company; and Illinois Tool Works.

While no stock is every guaranteed to increase in value, the folks at The Street have used rigorous criteria to attempt to predict which dividend stocks will be some of the best performers of the year. If you've got a little extra green on your hands and are considering investing, check out these stocks. Remember that diversity is key when purchasing stocks, so consider purchasing a few shares of several different stocks.