Here's Why Corning's Latest Report Might Worry You

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Here at The Motley Fool, I've long cautioned investors to keep a close eye on inventory levels. It's a part of my standard diligence when searching for the market's best stocks. I think a quarterly checkup can help you spot potential problems. For many companies, products that sit on the shelves too long can become big trouble. Stale inventory may be sold for lower prices, hurting profitability. In extreme cases, it may be written off completely and sent to the shredder.

Basic guidelines
In this series, I examine inventory using a simple rule of thumb: Inventory increases ought to roughly parallel revenue increases. If inventory bloats more quickly than sales grow, this might be a sign that expected sales haven't materialized. Is the current inventory situation at Corning (NYSE: GLW  ) out of line? To figure that out, start by comparing the company's inventory growth to sales growth. How is Corning doing by this quick checkup? At first glance, not so great. Trailing-12-month revenue increased 19.0%, and inventory increased 32.1%. Over the sequential quarterly period, the trend looks worrisome. Revenue dropped 9.1%, and inventory grew 3.8%.

Advanced inventory
I don't stop my checkup there, because the type of inventory can matter even more than the overall quantity. There's even one type of inventory bulge we sometimes like to see. You can check for it by examining the quarterly filings to evaluate the different kinds of inventory: raw materials, work-in-progress inventory, and finished goods. (Some companies report the first two types as a single category.)

A company ramping up for increased demand may increase raw materials and work-in-progress inventory at a faster rate when it expects robust future growth. As such, we might consider oversized growth in those categories to offer a clue to a brighter future, and a clue that most other investors will miss. We call it "positive inventory divergence."

On the other hand, if we see a big increase in finished goods, that often means product isn't moving as well as expected, and it's time to hunker down with the filings and conference calls to find out why.

What's going on with the inventory at Corning? I chart the details below for both quarterly and 12-month periods.

Source: S&P Capital IQ. Data is current as of latest fully reported quarter. Dollar amounts in millions. FY = fiscal year. TTM = trailing 12 months.

Source: S&P Capital IQ. Data is current as of latest fully reported quarter. Dollar amounts in millions. FQ = fiscal quarter.

Let's dig into the inventory specifics. On a trailing-12-month basis, raw materials inventory was the fastest-growing segment, up 72.9%. On a sequential-quarter basis, finished goods inventory was the fastest-growing segment, up 10.2%. That can be a warning sign, so investors should check in with Corning's filings to make sure there's a good reason for packing the storeroom for this period. Although Corning shows inventory growth that outpaces revenue growth, the company may also display positive inventory divergence, suggesting that management sees increased demand on the horizon.

Foolish bottom line
When you're doing your research, remember that aggregate numbers such as inventory balances often mask situations that are more complex than they appear. Even the detailed numbers don't give us the final word. When in doubt, listen to the conference call, or contact investor relations. What at first looks like a problem may actually signal a stock that will provide the market's best returns. And what might look hunky-dory at first glance could actually be warning you to cut your losses before the rest of the Street wises up.

I run these quick inventory checks every quarter. To stay on top of inventory and other tell-tale metrics at your favorite companies, add them to your free watchlist, and we'll deliver our latest coverage right to your inbox.

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Source: http://www.fool.com/investing/general/2012/02/22/heres-why-cornings-latest-report-might-worry-you.aspx

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Actors-Turned-Directors: Who Soared And Who Sunk


Madonna-Affleck-Eastwood-Actor-Directors

With the Academy Awards less than a week away, we decided to take a look at famous actors who have tried their hand at directing.

Among this year's Oscar nominated slew, George ClooneyGary Oldman, and Kenneth Branagh have all directed feature films. Even Jean Dujardin and Octavia Spencer have attempted a behind-the-camera role with TV show episodes and short films. 

While none of these stars are nominated for directing this year (though Clooney was in the running with "The Ides of March"), here's a look at actors who can work it behind the camera as well as they do in front ... And those who can't.

BEST: Clint Eastwood

The grandaddy of all actors-turned-directors, this famous movie cowboy has dominated the camera since 1971.

The most famous films out of the bunch would be 1992's "Unforgiven" and 2004's "Million Dollar Baby." Both raked in over $100 million domestically and garnered Best Director Oscars for the movie veteran. 

Notable acting roles:
 -“A Fistful Of Dollars”
 -“The Good, The Bad and The Ugly”
 -“Unforgiven”
 -“Million Dollar Baby”

Notable Films Directed:
 -"Unforgiven"- $101,157,447 (Best Director Oscar)
 -"The Bridges of Madison County"- $71,516,617
 -"Space Cowboys"- $90,464,773
 -"Mystic River"- $90,135,191 (Best Director Oscar Nomination)
 -"Million Dollar Baby"- $100,492,203 (Best Director Oscar)
 -“Letters From Iwo Jima”- (Best Director Oscar Nomination)
 -"Gran Torino"- $148,095,302

BEST: Jon Favreau

Although Jon Favreau has acted in more than 40 TV and film roles throughout his career ("Couples Retreat," The Break Up," "I Love You, Man") it is his directing that has garnered him the most success.

Out of the six films Favreau has directed, four of them have done big at the box-office. 

And look out for Favreau in his films, he shows up now and again, a lá Hitchcock.

Notable Acting Roles:
 -“Iron Man”
 -“I Love You, Man”
 -“Swingers”

Notable Films Directed:
 -"Elf"- $173,398,518
 -"Iron Man"- $318,412,101
 -"Iron Man 2"- $312,433,331

BEST: Ben Affleck

Ben Affleck has gone from Oscar-winning writer in 1998 for "Good Will Hunting" to A-list actor in films such as "Armageddon," "Hollywoodland," and "Boiler Room."

While some flicks have been forgettable (cough, "Gigli") Affleck has remained a top Hollywood actor, and now director.

He shows signs of staying power in the director's chair: Affleck's first two directorial features did well both critically and at the box office.

Notable Acting Roles:
 -“Good Will Hunting”
 -"Armageddon"
 -“Pearl Harbor”
 -“Hollywoodland”

Notable Films Directed:
 -"Gone Baby Gone"- $20,300,218 (National Board of Review- Best Debut Director)
 -"The Town"- $92,186,262

See the rest of the story at Business Insider

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Source: http://feedproxy.google.com/~r/businessinsider/~3/Pq45aVaCKqg/actors-turned-directors-who-soared-and-who-sunk-2012-2

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What Do I Do With My Tax Refund?

It?s no secret that Dave doesn?t like tax refunds. Anyone who asks him how to use a refund usually gets a bonus lesson on how and why to avoid one in the future.

What Does Dave Have Against Tax Refunds?

So, why don?t you want a refund? Isn?t getting a chunk of money at tax time as good as getting smaller amounts throughout the year? No way!

The IRS estimates that the average tax refund was $2,900 in 2011?that?s a little more than $240 per month you could have brought home in your paycheck.

Your goal is to pay nothing at tax time and not get a big check back from the government. To do that, do some figuring now to determine what your taxes will be for next year. Fill out a new W-4 to have the proper amount withheld from your paycheck.

We recently asked our Facebook fans what they plan to do with their refunds. Clearly, some of you have learned the truth about tax refunds!

?What refund?? Steph Eisert asked. ?We don?t make interest-free loans to the Treasury!?

Cynthia Thompson said this is her family?s last year to get a big refund.

?This year, we?ll pile (our refund) up in the bank, Ramsey-style,? she said. ?Next year, we?ll make a few adjustments so we?re not giving Uncle Sam an interest-free loan!?

Don?t Blow It

Like Cynthia, you need to have specific plans for your refund. Here are some ?Ramsey-style? suggestions:

Attend Financial Peace University ? Use part of your refund to register for a local Financial Peace University class. This 13-week course has taught more than one million families how to live like no one else by saving, giving and living debt free. Consider it an investment in changing your family tree.

Work the Baby Steps ? Any chunk of money should go directly into your current Baby Step. Finish or replenish your emergency fund, pay some debt, or save it for a large cash purchase, like these Facebook fans:

?This year, I?m using my tax refund to break up with Sallie Mae,? Melanie Boughton Steinhouser declared.

?In years past we would have just blown it,? admits Alicia Ann Medina. ?This year we are putting it toward our emergency fund.?

?(I?m going to) save to buy my first cash car and get out of a car payment!? Christine Bourdeaux said.

Give Like No One Else ? If you?ve made it to Baby Step 7, use your tax refund to give like no one else, like Facebook fan David Jackson and his wife. Their refund is going to pay for a mission trip to Costa Rica.

?It?s the first time we have ever been able to go on one together!? he said.

Take Care Of Business

If you?re expecting a refund this year, a tax professional can help you be sure you get all that?s coming to you. Then, you and your tax professional can determine what adjustments you need to make to keep more money in your paycheck. Dave?s team can put you in touch with a tax services Endorsed Local Provider today!

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Source: http://www.daveramsey.com/article/what-do-i-do-with-my-tax-refund/lifeandmoney_taxes

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