Will Angry Birds Become the Next FarmVille?

Nobody could have predicted that Angry Birds would dominate the world of mobile gaming. But it does, and it's all thanks to one company: Rovio. The Finnish gaming business' creation has been downloaded over a billion times, and 30 million users play daily. 

Rumor has it that Rovio could go public one day, taking a page out of fellow gaming company Zynga's (NASDAQ: ZNGA  ) playbook. Zynga is a much larger company with a more diverse roster of games, including Farmville and Words with Friends, but not long after the company's IPO, its stock dropped like a rock. Could Rovio be next?

Financials with friends
Rovio might be privately owned for now, but it has still revealed a few crucial tidbits about its income statement. The company hit Angry Birds pay dirt in 2009, and recently Rovio announced that its revenue in 2012 had doubled from 2011 to 152 million euros, or $199 million. Its net profit was impressive as well -- at $71.1 million, it held a healthy 35% margin, up 57% from last year.

2012's numbers were not so pleasant for Zynga, on the other hand. In March its stock reached a high of $14.69, but the company suffered a negative annual net income, after spending 86% of its revenue on research and development, as well as selling, general, and administrative expenses.

So what's the difference between these two companies? Are they simply at different points on the same trip to failure, or could Rovio avoid Zynga's fall?

Friending companies vs. friending consumers
Size isn't the only big difference between these two companies. Their strategies for generating revenue are surprisingly dissimilar as well. In 2012, Zynga gathered the bulk of its sales from its online gaming purchases and advertising, and thanks to its presence on Facebook, these revenues were staggering.

Rovio has of course made dough off of its games and ads, as well. However, there's one huge revenue generator that separates this company from Zynga: merchandise. From plush toys to Halloween costumes to hoodies, if you can think of it, there's an Angry Birds product for it. This accounted for 45% of the company's revenue last year, and Rovio has no plans to stop anytime soon. Chief Financial Officer Herkko Soininen recently expressed plans to create new entertainment offerings, including cartoons to feature films.

Selling merch is by no means a new tactic for gaming companies. Nintendo has sold paraphernalia based around its iconic plumber Mario for decades. Through this strategy, Rovio can focus less on the volatile world of mobile gaming and more on the promotion of beloved characters. If the company can continue reaping profits through merchandise while creating new games (and new characters to capitalize on), its moat could become wider than Zynga's.

That doesn't necessarily mean Rovio should go public. Angry Birds may be iconic, but there's no telling how popular any of Rovio's next offerings will be, and this kind of endeavor could take a lot of time and money to see through. An IPO may look tempting when a company needs capital, but Rovio's attentions would be spread too thin if it simultaneously focused on moving into video entertainment and appeasing shareholders. Still, Rovio's merchandise success proves that classic revenue-generating tactics can still be effective in a modern, mobile environment.

And then there's Zynga. This company's post-IPO performance has been dreadful, and investors are beginning to wonder if it's "game over" for this company. Turns out, being so closely tied to the world's largest social network can be a blessing and a curse. You can learn everything you need to know about Zynga and whether it's a buy or a sell in our new premium research report. Don't even think about picking up shares before you read what our top analysts have to say about Zynga. Click here to access your copy.

Money Terms to Know: Net Worth

Alamy April is Financial Literacy Month, and our goal is to help you raise your money IQ. In this series, we'll tackle key economic concepts -- ones that affect your everyday finances and investments -- to help you make smarter choices with every dollar decision you face. Today's term: net worth. In a nutshell, net worth is what you get when you subtract liabilities from assets -- what you owe from what you own. Like many economic and financial terms, net worth can apply in a variety of situations. If you're evaluating a company for your portfolio,you might glance at its balance sheet to get a handle on its net worth. Balance sheets break out assets (such as cash, inventory, and receivables) and liabilities (such as debt and accounts payable). Subtracting the latter from the former gives you net worth, which is also referred to in this context as shareholders' equity or book value. Here's an example: As of the end of 2012, IBM's (IBM) assets totaled $119 billion, and its liabilities totaled $100 billion. Thus, its net worth, or shareholders' equity, was $19 billion. Net Worth in Our Lives Each of us has an individual net worth, too, and it's arrived at in similar fashion. First, grab a sheet of paper and list all your assets. These would include the contents of your bank accounts, your investments, the equity you have in your home, your retirement accounts, the current value of your car(s), the value of your jewelry, the contents of your wallet or purse, and so on. Be thorough -- your sizable board game collection might be worth several thousand dollars, for example. Next, list all your liabilities, or debts. These would include what you owe on your mortgage or car loan, your credit card debt, any school loans outstanding, and any other debt, such as a home equity loan. Finally, subtract the liabilities from the assets. What's left is your net worth. Ideally, your net worth is positive and will grow over time. If your net worth is in negative territory, that's not great, but by saving aggressively, paying down your debts, and being careful in your spending you can reverse the situation over time. How Does Your Net Worth Compare? For the record, a typical net worth for an American family these days is between $100,000 and $200,000. The aggregate net worth of Americans has risen recently and is finally back to pre-recession levels. But much of those gains have gone to wealthy Americans and can be traced to the stock market's recovery. Middle-class Americans have about two-thirds of their net worth represented by their home equity, and home values have not recovered as much as the stock market at this point. The Dow Jones Industrial Average has more than doubled since its bottom about four years ago, while the national average home price is still some 30 percent below its peak. Other Reasons You Should Know Your Net Worth Knowing your net worth has practical value beyond just highlighting what you own and what you owe. It can also give you an idea of how well you're doing at saving for retirement. (Don't let seemingly large sums fool you -- even a million dollars at retirement may not be enough for some people's needs.) Net worth also matters when we engage in estate planning, as our estate is essentially our net worth. Deciding how to organize and manage your assets to minimize taxes and make things easy for your loved ones depends to some degree on the size of your estate, or net worth. So go ahead and calculate your net worth and see where you stand. . More money terms: Asset allocation Compound interest Opportunity cost

The Biggest Risk You're Taking With Your Retirement Nest Egg

Andy Dean Photography/Shutterstock Investors can afford to be aggressive when they're younger. But in their 50s or 60s? That aggressive manner should be mellowing down. Yet the vast majority of investors who are approaching retirement age are way too heavily invested in stocks. Investment company SigFig recently analyzed the asset allocation of more than 30,000 investors and compared that to their ideal allocation, based on their risk profile and investment horizon. The results: across all age groups, investment portfolios were too heavy on equities and too light on fixed income. Of baby boomers, only 3 percent of those in their 50s and 2 percent of those in their 60s had an allocation to fixed income investments that corresponded to their age risk tolerance, as determined by SigFig's questionnaire and an estimate of a well-balanced allocation. Bonds? What Bonds? A study released earlier this year by the Investment Company Institute, a mutual fund industry group, found that a third of investors in their 50s had 100 percent of their IRA accounts in stocks -- and so did a quarter of those age 60 to 64. For boomers easing into retirement, having 100 percent of their portfolio in equities probably doesn't feel too reassuring at times like the first half of this December, when the S&P 500 (^GPSC) fell more than 3.5 percent. More importantly, it's a risky strategy. You don't need to look back further than 2008-09 to know why.

3 Companies That Should Follow Amazon's Lead with Echo

Amazon's (NASDAQ: AMZN  ) latest device, Echo, is in a class of its own. At its core, Echo is a bluetooth speaker, but one that offers impressive functionality. Equipped with seven microphones and a WiFi connection, Echo serves as a digital personal assistant, able to take voice commands and respond intelligently.

Source: Amazon.

Echo's announcement was unexpected, and given that it has yet to receive a full release, its success is largely unproven. Moreover, the reviews it has received have been rather lukewarm -- though for a first generation product, that's not particularly unusual. Still, the category appears to hold promise, and its one that Amazon's major mobile competitors -- Google (NASDAQ: GOOG  ) (NASDAQ: GOOGL  ) , Microsoft (NASDAQ: MSFT  ) , and Apple (NASDAQ: AAPL  ) -- would do well to follow.

Siri is limited to iOS devices
Amazon's Echo is powered by the e-commerce giant's new digital personal assistant, Alexa. Like other personal assistants, Alexa can respond to queries, set reminders, and play select songs from a linked Amazon music account.

Apple's Siri offers all this and more but is currently restricted to the iPhone and iPad -- if those devices are out of reach, Siri is largely useless. Alexa, on the other hand, can be accessed from anywhere in the room with Echo's always-on microphones.

If the latest version of Apple's iOS is any indication, the Cupertino tech giant has an interest in offering something similar to Amazon's Echo. iOS 8 includes a new feature -- "Hey, Siri" -- that makes it possible to query Siri from a distance, completely hands-free. Still, it suffers from significant limitations: the device must be plugged in, and the microphones built into the iPhone and iPad, while solid, don't compare to the seven offered by Echo.

An Apple-made Echo alternative could significantly improve Siri's utility by making it far more accessible.

Google Now would be a perfect fit
Google's personal assistant, Google Now, is a little less restricted than Apple's Siri -- available as a mobile app, Google Now is accessible to owners of both Android and iOS devices. A few of these, including the recently released Nexus 6 and Motorola's first and second-generation Moto X, even offer hands-free accessibility.

But no handset quite compares to Echo, and like Siri, Google Now could be improved with dedicated hardware.

Of the three -- Alexa, Siri, Google Now -- the search giant's solution is probably the most powerful, able to interface directly with Google's many online services and offer personalized information on a predictive basis. Google Now can, for example, tip off workers to delays affecting their daily commutes -- assuming they have the foresight to check the app on their phone. A Google Now-connected speaker offering a helpful, verbal warning could prove immensely more useful for similar applications.

Cortana and the Xbox One
Microsoft also offers a version of Amazon's Echo ... sort of. Its video game console, the Xbox One -- when paired with Kinect 2.0 -- is capable of receiving voice commands. It can even search the Internet using Bing or start a playlist through Xbox Music. But Kinect is focused on entertainment rather than utility and exists as more of an alternative control scheme for the Xbox One, rather than an interface for a digital assistant.

Microsoft does have a digital assistant, though, one that it appears increasingly interested in. Cortana (named after a character from Microsoft's Halo franchise) is the Windows Phone equivalent of Siri. Given Windows Phone's extremely limited market share, Cortana hasn't enjoyed widespread adoption -- but that could be about to change.

Windows 10, the next version of Microsoft's operating system, will boast Cortana as a central feature. So long as Windows remains the dominant desktop operating system, Cortana should see increased usage. Away from a Windows PC, however, Microsoft's personal assistant will be largely inaccessible to a group of users that, more than likely, don't have a Windows Phone. A Microsoft-made, Echo-like device, could bridge the gap.

An important new hardware category?
The various digital personal assistants serve to bind users to their respective apps and ecosystems: Siri, with its ability to access iTunes music, encourages the use of Apple's digital music store; Google Now's predictive features work only when paired with its browser, Chrome, and its calendar app, Google Calendar.

Dedicated hardware like Echo could entice users to rely on these assistants to a greater extent and thereby tie themselves further to each company's respective ecosystem. At first glance, Amazon's Echo may appear to be a quirky, niche device, but it could eventually represent an important new hardware category.

Apple Watch revealed: The real winner is inside
Apple recently revealed the product of its secret-development "dream team" -- Apple Watch. The secret is out, and some early viewers are claiming its everyday impact could trump the iPod, iPhone, and the iPad. In fact, ABI Research predicts 485 million of this type of device will be sold per year. But one small company makes Apple's gadget possible. And its stock price has nearly unlimited room to run for early in-the-know investors. To be one of them, and see where the real money is to be made, just click here!

Jobless Claims Continue to Fall; Wholesale Stockpiles Surge

Spencer Platt/Getty Images WASHINGTON -- The number of Americans filing new claims for unemployment benefits fell last week to nearly its lowest level since before the 2007-09 recession, a sign of growing steam in the U.S. labor market. Initial claims for state unemployment benefits dropped 1,000 to a seasonally adjusted 287,000 in the week ended Oct. 4, the Labor Department said Thursday. Economists had expected claims to rise. The data adds to the view that strength is building in the U.S. economy. "The labor market is entering into a potential boom," said Joseph LaVorgna, chief U.S economist at Deutsche Bank (DB) in New York. Still, Federal Reserve officials remain concerned about persistently low rates of inflation and aren't seen in a rush to hike interest rates with the economies of key trading partners flagging. A separate report showed U.S. wholesale inventories rose by the most in four months in August, a sign the economy may have grown more than expected in the third quarter. Many economists think the economy grew at an annual rate of around 3 percent in the July-September period, much faster than average rates over the last few years. U.S. stocks opened lower as investors took profits after a big rally Wednesday that had been fueled by minutes of the Fed's last policy meeting, which suggested an interest rate hike could be delayed because of growing concerns on the international outlook. The U.S. dollar, which had been on a long run up through last week, slid to a three-week low against the Japanese yen Thursday, while yields on U.S. government debt rose modestly. Jobless claims have fallen steadily since the nation emerged from the recession and are currently lower than they were before the country's economic crisis began. Indeed, the level of claims last week was just 8,000 above a 14-year low reached in July. The four-week moving average of claims, considered a better measure of labor market trends as it irons out week-to-week volatility, fell 7,250 to 287,750, its lowest level since 2006. The Labor Department said there were no special factors influencing the state level claims data. The report showed the number of people still receiving benefits after an initial week of aid dropped 21,000 to 2.38 million in the week ended Sept. 27. "The gradual improvement in continuing claims is particularly encouraging and is consistent with recent declines in the unemployment rate, suggesting that unemployed workers continue to find gainful employment," said Gennadiy Goldberg, U.S. strategist at TD Securities in New York. -.

Sydney Airport: Cleared for Takeoff

The world just can't get enough of Australia.

Or at least that's what one might conclude after looking at the latest tourism numbers from the country. They show that international visitors spent A$30.1 billion in Australia in the year ended June 30, up 7.0% from the previous year ($1 Australian = $0.90 U.S.).

China continues to be a fast-growing tourism source, with 709,300 Chinese visitors landing in Australia in 2013, up 14.4% from 2012. Tourism Research Australia sees that figure topping one million by 2020.

But tourists from other Asian destinations continue to arrive en masse, as well. That includes those from Malaysia (up 24% in the year ended May 2014), Hong Kong (up 23.3%) and India (up 20.5%).

That growth is being driven by two key factors: the fact that Australia is at most an eight-hour flight for most Asian tourists, and the rapid rise of the continent's middle class. According to Reuters, Asia will be home to 64% of the global middle class by 2030, up from 30% now.

Aussies Take to the Skies

Meanwhile, more Australians are hopping on a plane, with 5.4 million choosing an overseas holiday in the year ended March 2014. That's up 8% from a year ago and more than double the number who ventured overseas in 2006.

A stronger Australian dollar has helped support that growth. As well, international airfares remain at record low levels, a trend that's expected to continue.

"The prices and affordability are exceptional and extraordinary, and this will continue to drive growth," said Graham Turner, managing director of the Flight Centre Travel Group Ltd. (ASX: FLT), in a recent Sydney Morning Herald article.

Another factor? According to a recent report from Credit Suisse, Australians are the world's richest people, with a median wealth of US$219,505. As of the end of 2013, 1.1 million of the country's 23.1 million citizens were millionaires.!

Australia's Asian Gateway

All of this adds up to sunny skies for Sydney Airport (ASX: SYD, OTC: SYDDF), which is Sydney's only international airport and Australia's largest, with 37.9 million passengers trooping through its three terminals in 2013.

Sydney Airport is one of five stocks we recommend in our new special report, "The Secret to Becoming a Millionaire: 5 Australian Stocks That Can Make You Rich." (See below to get your free copy today.)

The company's pricing is subject to a less rigorous regulatory framework than some of its peers in Europe and the U.S., as it negotiates commercial agreements directly with airlines. The airport was government-owned until its privatization in 2002.

More traffic from Asia, along with a long history of rising revenue and earnings, caught the attention of Australian Edge chief strategist David Dittman, who added the stock to the advisory’s Aggressive Portfolio in December 2013.

"[Sydney Airport's] financial and operating results in the 21st century are evidenced by long-term resilience and supported by strong growth in passenger numbers," he wrote at the time. "This traffic growth is now driven to a large degree by Chinese tourism."

Investors who purchased shares then have seen a 24.4% total return in just nine months. And Dittman feels Sydney Airport has plenty of altitude to gain yet.

Strong Results in First Half

In the first half of 2014, Sydney Airport's revenue rose 5.7%, to A$568.4 million from A$537.9 million in the first half of 2013.

Overall passenger numbers were up 2.3% from a year ago, to 18.6 million. The international passenger count increased 4.5%, to 6.4 million, while domestic traffic rose 1.2%, to 12.2 million.

The gains were helped by cultural and sports events, like the Chinese New Year, a Rotary conference in Sydney and the Ashes cricket series between England and Australia. Correspondingly, the airport saw more travellers from Asia and! markets ! like the U.K., France and the U.S.

Revenue increased across Sydney Airport's operations, including aeronautical revenue (up 5.7%), retail (up 7.4%), property and car rental (up 6.8%), and car parking and ground transport (up 5.7%).

Earnings before interest, taxes, depreciation and amortization (EBITDA) rose 6.1%, to $A459.5 million. The company paid an interim distribution to unitholders of A$0.115 a share on August 15, up from A$0.11 a year earlier. The stock currently boasts a 5.4% yield.

The company aims to pay out 100% of its free cash flow as distributions, and remains on track to deliver a full-year distribution of A$0.235, in line with its earlier guidance.

Second Airport Might Be an Opportunity in Disguise

Sydney Airport could face new competition after Prime Minister Tony Abbott's government recently approved a one-runway airport at Badgerys Creek, 50 kilometers west of Sydney's central business district.

However, as part of the company's privatization deal, it acquired the right of first refusal to build and operate a second airport; it plans to start formal consultations with the government on September 30.

The government says the private sector must assume construction costs of around A$2.5 billion, but the Abbott administration has pledged A$2.9 billion to expand and upgrading several major roads that would eventually lead to the airport. The government wants to see shovels in the ground in 2016, with the first planes landing sometime in the middle of the next decade.

Most analysts feel that Sydney Airport will likely work with the government on the project, including Dittman.

"A second airport could provide the company with a long-term growth opportunity, since western Sydney's population is expected to rise by 50% over the next 20 years, to 3 million from 2 million," he wrote in an April 16 Australian Edge article.

The new airport's distance from Sydney's city center could bring other benefits, such as! a lack o! f a curfew, where Sydney's operations are strictly limited between 11 p.m. and 6 a.m. The new airport could also become a hub for growth-oriented budget airlines.

No matter what Sydney Airport ultimately decides, Dittman sees clear skies ahead.

"Proximity to Asia and its growing middle class, with a high propensity to travel, and increased airline capacity put Sydney Airport in a prime position to grow for the long term," he wrote in his new special report.

Who Else Wants the Secret to Becoming a Millionaire?

Fact: Australians grew their wealth by more than $1 billion dollars a day last year—enough to mint 43,275 new millionaires!

So what's their secret?

The 5 winners Australian-investing expert David Dittman reveals in his new special report. They're the same stocks ordinary Australians use to get rich. And they're just as easy to buy as any U.S. stock.

The time to get in is now.

Get full details here. 

Dow Hits 17,000 On Jobs Report; Walgreen Same-Store-Sales Surge 7.5%

Related BZSUM Dow Trades Above 17,000 While S&P 500 Inches Closer To 2,000 #PreMarket Primer: Thursday, July 3: Much To Consider Despite The Short Day

Following the market opening Thursday, the Dow traded up 0.43 percent to 17,048.94 while the NASDAQ surged 0.37 percent to 4,474.01. The S&P also rose, gaining 0.35 percent to 1,981.49.

Leading and Lagging Sectors

In trading on Thursday, non-cyclical consumer goods & services shares were relative leaders, up on the day by about 0.56 percent. Top gainers in the sector included Rite Aid (NYSE: RAD), up 5.7 percent, and Lorillard (NYSE: LO), up 4.8 percent.

Utilities shares dropped 0.78 percent in today’s trading. Top decliners in the sector included Companhia de Saneamento Basico do Estado de Sao Paulo (NYSE: SBS), down 1.7 percent, and Public Service Enterprise Group (NYSE: PEG), off 1.9 percent.

Top Headline

Walgreen Co (NYSE: WAG) reported a 7.5% rise in its same-store sales in June.

Walgreen’s overall sales climbed 8.9% to $6.28 billion. Its same-store sales in the pharmacy section climbed 11.3% in June.

Walgreen’s same-store customer traffic declined 2%.

Equities Trading UP

PetSmart (NASDAQ: PETM) shares shot up 12.76 percent to $67.43 on news that activist investor Barry Rosenstein had acquired a 9.9 percent stake and will seek a review of strategic alternatives.

Shares of Lululemon Athletica (NASDAQ: LULU) got a boost, shooting up 3.26 percent to $42.75 after Dow Jones reported that the company’s founder Dennis Wilson, is exploring options , including a potential sale of the company to private equity.

Cree (NASDAQ: CREE) shares were also up, gaining 3.94 percent to $52.29. Oppenheimer upgraded Cree from Market Perform to Outperform.

Equities Trading DOWN

Shares of SYNNEX (NYSE: SNX) were down 5.46 percent to $69.89 after the company issued a downbeat outlook for the third quarter. It expected adjusted earnings of $1.45 to $1.50 per share on revenue of $3.3 billion to $3.4 billion. Analysts were projecting earnings of $1.53 per share on revenue of $3.29 billion.

NQ Mobile (NYSE: NQ) shares tumbled 34.32 percent to $4.44 after the company announced certain changes to its Board of Directors and provided a status update on its 2013 annual audit.

BIND Therapeutics (NASDAQ: BIND) was down, falling 10.56 percent to $11.52 after the company reported the closing of collaboration deal with Amgen (NASDAQ: AMGN).

Commodities

In commodity news, oil traded down 0.43 percent to $104.03, while gold traded down 1.07 percent to $1,316.70.

Silver traded down 1.04 percent Thursday to $21.08, while copper fell 0.15 percent to $3.26.

Eurozone

European shares were higher today.

The eurozone’s STOXX 600 rose 0.73 percent, the Spanish Ibex Index gained 0.37 percent, while Italy’s FTSE MIB Index surged 0.90 percent.

Meanwhile, the German DAX climbed 0.79 percent and the French CAC 40 rose 0.69 percent while UK shares climbed 0.66 percent.

Economics

The US economy added 288,000 jobs in June, while the unemployment rate declined to 6.1% versus 6.3%. However, economists were expecting an addition of 215,000 nonfarm jobs.

US jobless claims increased 2,000 to 315,000 in the week ended June 28. However, economists were projecting claims to reach 314,000 in the week.

US trade deficit narrowed 5.6% in May to $44.4 billion in May. The country’s exports increased 1% to $195.5 billion, while imports declined 0.3% to $239.8 billion.

The final reading of Markit PMI Services index fell to 61.00 in June, versus a prior reading of 61.20. However, economists were expecting a reading of 61.00.

Announced layoffs declined 31,343 in June versus 52,961 in May, according to outplacement consultancy Challenger, Gray & Christmas.

The ISM non-manufacturing index fell to 56.00 in June, versus a prior reading of 56.30. However, economists were expecting a reading of 56.30.

The Treasury is set to auction 3-and 6-month bills. The Treasury will also auction 3-and 10-year notes.

Data on money supply will be released at 4:30 p.m. ET.

Posted-In: Earnings News Guidance Eurozone Futures Commodities Contracts Legal

© 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

  Most Popular Apple Price Target Raised 15% By Evercore, Sees Revenue Growth Resuming Rumored Big Engine Order From American Could Boost GE Aviation's Bottom Line Aegis Capital Believes Valeant Pharmaceuticals' Bid For Allergan Is Looking More Promising Traders Speculating Chevron May Acquire Devon Energy (CVX, DVN) Now Is The Right Time To Buy Rite Aid Nintendo Promoted 'Mario Kart 8,' Nintendo 2DS With $9.7 Million TV Ad Campaign Related Articles (AMGN + BIND) Citi Sees Plenty Of Q2 Earnings Beats Ahead In Biotech Sector Dow Hits 17,000 On Jobs Report; Walgreen Same-Store-Sales Surge 7.5% JMP Securities Speculates How End Of Amgen Collaboration Could Affect BIND Therapeutics Morning Market Losers UPDATE: Credit Suisse Reiterates On BIND Therapeutics After AMGN Declines Option On Accurin Technology Benzinga's Top #PreMarket Losers Partner Network

A $6.9 million bet on a clean shave

  Techie makes a bet on a clean shave NEW YORK (CNNMoney) Tristan Walker is no stranger to the startup hustle.

As a first year student at Stanford Business School, Walker emailed Foursquare founders Dennis Crowley and Naveen Selvadurai. He parlayed the email into a job heading up business development for the startup. Walker later left Foursquare to become an entrepreneur in residence at investment firm Andreessen Horowitz.

Now Walker is ready for the next step in his career: heading up his own company.

His new venture, Walker & Company, just raised $6.9 million in a round of financing led by Andreessen Horowitz. It will provide products made specifically for people of color. The idea stemmed from his own experience.

Walker, who is African American, found men's razors difficult to use due to his hair and skin type. As a solution, the first brand under the Walker & Company umbrella is called Bevel -- a six-piece razor kit selling for $59.95 that is designed specifically for people with coarse, curly hair.

"I know when I started a company, there's one thing that was very important to me, and that was developing something with real authenticity," Walker told CNNMoney.

Walker says that with a single blade, the Bevel razor cuts the hair level with the skin rather than beneath like multi-blade razors. The kit also includes creams aimed at reducing irritation and bumps. The idea is to tap into the health and beauty market for people with curly and coarse hair.

According to Walker, a large number of black males are interested in a product that helps combat razor burn. In addition to African Americans, Walker & Company products will address specific needs faced by Latinos and Asians.

"When I think of other issues that exist in the community, I think about things like Vitamin D deficiency, I think about hyperpigmentation, I think about natural hair transitioning," Walker says. "We're going to develop brands to solve each of those problems."

While the Bevel is currently available only online, Walker says his goal is to have it sold in major retailers.

Advisory Industry Wants More Exams (and Will Pay for Them, Too)

Advisory industry executives and advocates descended on Capitol Hill Thursday to participate in the Investment Adviser Association’s annual lobbying day, with a focus on issues “that cut across all of our member firms,” says David Tittsworth, IAA’s president and CEO.

Those issues include not only boosting funding for the Securities and Exchange Commission so that it can increase advisor exams, but pushing members of Congress to support the Investment Adviser Examination Improvement Act of 2013, a bill sponsored by Rep. Maxine Waters, D-Calif., that would allow the agency to collect fees from advisors to fund their exams.

Indeed, Skip Schweiss, president, TD Ameritrade Trust Co., and managing director of advisor advocacy and industry affairs at TD Ameritrade Institutional, told ThinkAdvisor on Thursday before heading to the Hill that his “core message” to lawmakers will be to support Waters’ user fees bill. “We come up here [to the Hill] with a very unusual message: We welcome more regulation and more frequent examinations, and we’re willing to pay for it.”

The “great thing” about the user fees bill, Schweiss continued, is that the fees that would be assessed do not end up in the “general pot” at the SEC. Fees that advisors would pay “have to be earmarked to examine advisory firms.” The Waters bill “was well written in that regard.”

The current advisor exam cycle of once every 11 years “is not good for investors, and it’s not good for the advisory industry,” Schweiss said. “It needs to be resolved,” but “the question becomes how to do that, because it takes money.”

Neil Simon, vice president of government affairs for IAA, told ThinkAdvisor on Thursday that while IAA members will be voicing their support for Waters' user fees bill, "action on the bill in the House does not look likely." That's why IAA and a fairly broad coalition of advisory groups, Simon said, still remain focused on getting a bipartisan bill that mirrors Waters' bill introduced in the Senate.

"The best opportunity to get [a user fees bill] enacted into law is a bipartisan bill in the Senate," Simon said.

Indeed, with little likelihood that Congress will boost the SEC’s budget enough to increase advisors’ exam cycle and with Waters’ bill having stalled, Schweiss said SEC Commissioner Daniel Gallagher’s recent suggestion to fix the exam imbalance by allowing third-party advisor exams “merits discussion.”

While Tittsworth agreed in a Monday letter to Gallagher that third-party advisor exams are “worthy of debate,” he suggested that a better solution would be for the agency to “reallocate” its resources to support more advisor exams.

There are “a lot of questions about what Gallagher has proposed,” Tittsworth told ThinkAdvisor Thursday. /* .premium-promo { border: 1px solid #ddd; padding: 10px; margin: 0 10px 10px 0; width: 200px; float: left; } .premium-promo li, .premium-promo ul { list-style-type: none; margin: 0; padding: 0; } .premium-promo li { margin: 0 0 10px; padding: 0 0 10px; border-bottom: 1px dotted #ddd; } .premium-promo h3 { text-transform: uppercase; font-size: 11px; } .premium-promo h4 { font-size: 16px; } .premium-promo a { text-decoration: none !important; } .premium-promo .btn { background: #0069a1; border-radius: 4px; display: inline-block; padding: 5px 10px; clear: both; color: #fff; font-weight: bold; } .premium-promo .btn:hover { background: #034c92; } */ Tittsworth says the goal of IAA’s annual lobbying day is to “connect our members with members of Congress” and to “make sure that lawmakers understand who we are and what we do.” The thirty IAA members attending the lobbying day will be meeting with lawmakers on both sides of the aisle in both the House and Senate, Tittsworth said.

Knut Rostad, the founder and president of The Institute for the Fiduciary Standard and the regulatory and compliance officer at Rembert Pendleton Jackson, says that he believes “IAA has gotten a toehold on the Hill and is far more recognized now.”

Indeed, Schweiss concedes that while Waters’ user-fees bill “faces an uphill battle” in this Congress, the advisory industry “did have a significant impact” on convincing lawmakers not to support the bill that former House Financial Services Committee Chairman Rep. Spencer Bachus, R-Ala., floated, which would have basically appointed the Financial Industry Regulatory Authority as the self-regulatory organization for advisors.

---

Check out IAA to SEC: To Boost Advisor Exams, ‘Reallocate Resources’ on ThinkAdvisor.

Vanguard beats BlackRock, taking in most ETF money in 1Q

Vanguard's John Bogle Bloomberg

The Vanguard Group Inc., the third-biggest provider of exchange-traded funds, has gained ground on larger competitors so far this year after gathering more than seven times as much money into its ETFs than the rest of the U.S. industry combined.

Vanguard attracted $13.1 billion, or almost 90 percent of the money gathered by all U.S. ETFs in the quarter ended March 31, according to data compiled by Bloomberg. Clients pulled a net $18.3 billion from ETFs run by State Street Corp., including $19 billion from the SPDR S&P 500 ETF Trust, known as the Spider.

Vanguard, started almost four decades ago by John C. Bogle, has been able to attract steady deposits from savers by offering low-cost funds, a strategy that helped it become the largest mutual-fund provider. A latecomer to ETFs in part because Bogle was opposed to them, the firm has been narrowing the gap with industry leaders such as BlackRock Inc. and State Street, whose products are popular among fickle institutional investors such as hedge funds that seek ways to trade in and out of markets quickly.

“We think Vanguard’s market share is going to grow and in the very near future can take over the No. 2 spot from State Street because they have a broad array of successful products,” said Todd Rosenbluth, director of mutual-fund and ETF research at S&P Capital IQ.

Retail investors are drawn to Vanguard funds for their lower fees, while institutional users gravitate to more actively traded products for their liquidity, which reduces trading costs, said Ben Johnson, director of passive funds research at Morningstar Inc.

VANGUARD'S PHILOSOPHY

Founded by Mr. Bogle in 1975, Vanguard became the first firm to make index funds available to retail investors. By spreading money across the entire stock market at low cost, Bogle argued that inve

Stillwater Mining Company (SWC): A Nice PGM Play Enroute To $20

Investable equities in the platinum group metals (PGMs) space have always been limited. South Africa, providing approximately 40 percent of global palladium and some 70 percent of global platinum, remains largely un-investable, given significant socio-political issues that inherently drive cost escalation to the point of material industry decline.

Outside of South Africa, only a few listed companies operate in this space, Stillwater Mining Company (NYSE:SWC) is one among them. Stillwater has steered clear of the flawed copper strategy and is now re-focused on making more of the PGM asset base.

[Related -Indices Extend Rally]

Recently, Stillwater projected a limited amount of growth from the PGM assets – looking for a potential output level of 600 Koz. by 2017 (from 500 Koz. at present).

CIBC analyst Leon Esterhuizen said SWC is well geared to increases in the palladium price in particular, but also to platinum and is almost "perfectly" positioned in that it is outside South Africa and thus able to participate in any metal price increase that results from the problems in South Africa.

New management is aggressively pursuing cost-reduction or profit-maximization measures, which could lead to increased utilization at the smelter and refinery complex.

The recently appointed CEO, Mick McMullen, could not have asked for a better opportunity. All he needs to do is drop costs, increase output, and make sure the company does not get distracted by opportunities (or rather non-opportunities) in copper—the company's greatest failure in the past.

[Related -General Motors Just Wrote This Company A Blank Check]

Well, results delivered over the past two quarters are clearly showing significant delivery on this exact strategy, with costs having come down, production increasing, and a complete step-back from large-scale capital expenditure on Marathon and Altar (two copper projects with questionable economics). Meanwhile, the PGM asset base continues to be developed.

The new strategy seems to be about reduce the cost of production; increase the output of PGMs; and crank up the unproductive smelter and refinery business. Esterhuizen added that this does not spell anything that sounds remotely impossible and given current unusually high cost levels and significantly underutilized capital assets, combined with thin free cash flow margins, any improvements, even very small ones, could deliver sharply better profitability.

After about nine months in the seat, McMullen's strategy is bearing fruit and was clearly reflected in the fourth quarter 2013 results. Production sequentially rose 13 percent to 141.1 Koz, and full-year production was 523.9 Koz., ahead of guidance of 505-515 Koz.

Cash costs in the fourth quarter were $500/oz., down from $590/oz. in the third quarter. Full-year costs were $496/oz., well below guidance of $530 to $540/oz.

The price received in the first quarter of 2014 seems to be running in the order of $930/oz—a full $80/oz more than the impressive fourth quarter delivery, but higher palladium prices aren't the only consideration. Costs are expected to continue declining with a management's objective to try and reduce this by at least $100/oz.

In a recent investor presentation, management indicated January and February 2014 delivery to be running ahead of guidance. Stillwater actually increased guidance again when fourth quarter results were announced (guidance was first increased at the end of January 2014), to 520-535 Koz. from 505 to 515 Koz. Cash cost guidance has also been improved to between $540/ and $590/oz., from $550 to $600/oz. Current growth pushes all-in cost guidance to $805-$855/oz. per PGM ounce.

Esterhuizen noted that this consistent guidance and the equally consistent out-performance of this guidance, when combined with a $80/oz (10 percent) increase in revenue, should naturally deliver even better numbers in the first quarter.

Meanwhile, the company's downstream business in Stillwater attracts zero value in the share price of the company. This idle capacity can be filled and may even allow for expansion and sound profit generation through third-party smelting and refining.

There is a real need in the general area for an alternative as several possible PGM producing projects across the border on the Canadian side have been hit due to the lack of a nearby smelter/refiner. Stillwater is well positioned to play that role

The current smelters (two that can handle 150t/day and 100t/day in concentrate feed) are only running at 60 percent capacity and on a batch process for four days of the week. The first objective then must be simply to fill this underutilized capital capacity.

Esterhuizen notes the big focus for the team is to make sure this extra capacity that has been opened up again is filled with high-quality ore that delivers not only more ounces, but even more profit.

In fact, the Stillwater Mine had regularly been filling the mill at a rate of about 2,200 t/day, but following some small changes and adjustments, this mill is now consistently running in the order of 2,700 to 2,800 t/day with the mill having a full capacity of 3,000 t/day.

From the strategy and the options available, Esterhuizen believes there is  real potential here for driving the share price higher even in the face of a flat PGM price environment. Under new management, a renewed focus on delivering maximum profitability from an already installed capital capacity seems set to change that.

Not only are recent production and cost numbers starting to paint a positive trend, but the ideas and strategies now being focused on seem to hold equal promise for the trend to continue, or even improve over the next two to three years. A strong combination of lower costs and higher volumes, as well as expanded utilization of the downstream business, could lift share price to well above $20.

Deere & Company Shatters EPS Estimates; Stocks Rise (DE)

Before the opening bell on Wednesday morning, Deere & Co. (DE) reported its first quarter earnings, posting a 3% rise in sales over last year’s Q1 figure. 

DE’s Earnings in Brief

Deere reported first quarter revenues of $7.65 billion, up from last year’s Q1 revenues of $7.42 billion; this was higher than analysts’ estimates of $6.62 billion. Net income attributable to Deere was also up from last year, coming in at $681 million compared to last year’s Q1 figure of $650 million. DE’s EPS came in at $1.81, far above last year’s Q1 EPS figure or $1.65, and much higher than analysts’ estimates of $1.53. Looking ahead to the full year, DE sees equipment sales decreasing 3%.

CEO Commentary

Samuel R. Allen, Deere’s chairman and CEO, had the following to say about the company’s Q1: ”With another record quarter, John Deere has started 2014 on a strong note. Our results demonstrate the adept execution of our operating and marketing plans, which are aimed at expanding our global market position and helping our customers throughout the world be more profitable and productive,” he said. “In addition, we are seeing further benefit from efforts to hold the line on costs.”

DE’s Dividend

Deere last announced a dividend raise in February 2013, when it bumped its quarterly payout to 46 cents to 51 cents. With the company’s “record quarter,” and this release blowing estimates out of the water, we will look for a dividend raise announcement in the next few weeks.

Stock Performance

Deere stock was up $1.94, or 2.22%, in pre-market trading. YTD, the company’s stock is down 3.01%.

Entrepreneurs see opportunities in Google Glass

A rare opportunity came my way in October when Google unveiled its Internet-surfing, voice and gesture-controlling eye glasses to the public for the first time in Durham, N.C., near where I live.

I'd heard (and written) about wearable technology and its power to access many apps and programs on a computer or smartphone without using hands.

But it wasn't until Google Glass was on my face, and a Glass Guide was talking me through its functions and features, that I really got it. Glass is like an add-on to my brain.

That got me thinking about the 10,000 men and women given the chance to buy Glass and test it in the past six months. These "Explorers" got a head start on developing the apps, called 'Glassware,' that will make the gadget the biggest innovation in mobile technology since the cellphone.

They are people and businesses that top-tier venture capitalists at Google Ventures, Andreessen Horowitz and Kleiner Perkins Caufield & Byers have pledged to fund through their new investment syndicate, Glass Collective. Other investors are expected to flock to Glassware when the device launches in 2014.

Who are these Explorers? What business opportunities do they see? Meet four enthusiastic Glassware developers convinced they're building the future of mobile.

• Tim Moore, a social media strategist in Wilmington, N.C., got his Glass in June, and immediately set to work solving what he believes to be Glass's biggest deficiency. Moore couldn't wear Glass with his prescription eyeglasses, drastically reducing its usefulness.

Working with New York eyewear manufacturer Rochester Optical, he will introduce the first prescription lenses and designer frames for Glass at the Wearable Technologies Conference in Munich in January.

Moore hasn't stopped there. He's interviewed dozens of doctors and firefighters, exploring ways to use Glass in medical practice or during emergency calls. He also launched a free consulting service called Venture Glass to provide resources ! for people developing Glassware. He might invest or partner with those contacting him for help. But mostly, he's listening to their ideas, offering advice and helping them meet other Glass experts and developers.

"I didn't see a resource out there," he says. "You had to be Google or a big company with real close connections to Google to even have an opportunity. I thought it should be a level playing field."

• Cecilia Abadie, a San Diego software developer, has launched Byte An Atom Research with a pair of co-founders. Their first product is LynxFit, a fitness application that acts as a virtual personal trainer, giving video and voice instructions during a workout and measuring the speed and direction of movements via Glass's accelerometer and gyroscope.

Abadie's team is in discussions with major fitness brands about releasing content via the application, helping to create a business around it, she says.

• Keith Myers didn't sleep for a week after he won a Twitter competition to receive Glass in July. The Miami software developer had one wish for Glass: that it notify him of potential hurricanes in his hometown, wherever he might be traveling in the world.

Free and paid versions of that application are ready to launch whenever Glass does.Myers is working on a bar-code scanning application for servers in massive data centers. Glass would scan a code on a server and show an information technology manager all the diagnostics, simplifying maintenance.

Myers expects to become a full-time Glass and wearable device developer in the next year.

• Barry Schwartz and his team at Web development firm RustyBrick in West Nyack, N.Y have built Glassware to serve their clients and their passions.

For EZContacts.com, Rusty Brick built a promotional app in which Glass users take an eye exam and share it through social media. For MarketingLand.com, Glassware pushes out content from the website as soon as it's published. For fun, Schwartz's team built Glassware that not! ifies Jew! ish people about ways to practice their faith throughout the day. It locates the nearest temples and kosher restaurants wherever a person might be in the world.

Schwartz sees his biggest opportunity in helping emergency room doctors. He and a medical client are discussing ways that Glass could deliver patient records — making treatment more efficient — or record procedures for training or tracking purposes.

Schwartz has advice for anyone dreaming up a business around Glassware: Consider how your data or content could help people in a hands-free, on-demand setting.

"Think about what people want and then send it to them when they need it," Schwartz says. "That's how to think about Glass."

Laura Baverman is a Raleigh, N.C.-based business journalist covering start-ups and entrepreneurship for regional and national publications. She previously covered entrepreneurship for the Cincinnati Enquirer, a Gannett newspaper. Baverman can be reached via e-mail at lbaverman@gmail.comor Twitter @laurabaverman.