• JC Penney Aside, Short Sellers Have an Unlucky ’13

    The bears have been greedily feasting on what’s left of J.C. Penney Co. (JCP) for months.

    The most heavily shorted stock in the Standard & Poor’s 500 Index, Penney shares have collapsed by 50% so far this year to a 13-year low, as its disastrous merchandising changes under former CEO Ron Johnson deflate sales and drain the company’s cash rapidly.

    J.C. Penney storeYet Penney is a glaring exception rather than the rule in the 2013 market, in which short-sellers have largely gone hungry. In fact, the most heavily shorted stocks in the market have gone up on average more than the broad market has, a trend most gaudily shown by the rocket flights of Tesla Motors Inc. (TSLA) and Netflix Inc. (NFLX), up 430% and 240% this year, respectively. The AdvisorShares Ranger Equity Bear ETF (HDGE), a short-selling fund, is down 20.3% in ’13 -- more than the major indexes are up.

    The stocks that have drawn the largest number of skeptics extended their advantage in the September market rebound. Bespoke Investment Group

    Read More »from JC Penney Aside, Short Sellers Have an Unlucky ’13
  • When Western Union Co. (WU) was founded in the mid-19th century, the “Western” referred to the most distant reaches of the U.S. telegraph system at the time, in the Mississippi Valley. Today the company operates in 200 countries and territories – every nation, in fact, but North Korea and Iran.

    Reuters

    And while Western Union no longer handles singing telegrams, its unique network of half-a-million money-transfer agents allows customers to send cash whistling virtually anywhere on the globe, from Times Square to a remote Asian village.

    Western Union has been listed on the New York Stock Exchange since 1865; it developed the first successful stock ticker in 1869 and, in 1884, became one of the original 11 members of the Dow Jones Industrial Average. It's now a company that helps knit together the 21st-century global economy, with its ever-deepening cross-border economic interconnections and unprecedented mobility of labor and goods.

    Skeptics abound

    But neither Western Union’s pedigree, its

    Read More »from Western Union: A 19th-Century Company in Tune With the 21st-Century Economy
  • On Tuesday, October 1, Americans can sign up for health insurance under the Affordable Care Act (also known as Obamacare). You've probably heard repeatedly arguments for and against the new law, including bits and pieces from Republican Senator Ted Cruz's (R-TX) 21-hour talkathon quasi-filibuster on the Senate floor earlier this week.

    Related: Gullible Americans Fuel Obamacare's Bad Rap

    Aaron Smith is a fan of Obamacare. He's the co-founder and executive director of Young Invincibles, an organization dedicated to expanding economic opportunities for young people. Smith tells The Daily Ticker that about 90% of the 19 million uninsured young people in the U.S. will "qualify for tax credits that are going to make health insurance more affordable than ever before and [with] higher quality."

    How much coverage they get and the price they pay will depend on what plan they choose, where they live and the tax credits--i.e., subsidies--they qualify for. Health care insurance exchanges are

    Read More »from Obamacare: More Coverage at Lower Cost For Many Young People, Says Young Invincibles
  • Fewer seniors will be able to take advantage of the federal government's reverse mortgage program in the near future.

    The Federal Housing Administration will put in place changes next week that will make it tougher to qualify for a reverse mortgage while also limiting the amount of money that seniors can draw down on their mortgage. An applicant's credit history will now be more heavily scrutinized too.

    A reverse mortgage is only available to Americans 62 and older. It enables them to cash in on their home's equity in a lump sum or installments. The program is not cheap though. The FHA will spend nearly $3 billion this year backing these mortgages.

    Related: Is the Housing Recovery Still On Track?

    As Reuters points out: "The problem for the FHA is that an increasing percentage of these loans are ending up in default. A record 54,000 FHA-insured reverse mortgage borrowers - or 9.4 percent - have defaulted. That's up from 8.1 percent in July 2011."

    Chris Whalen, managing director &

    Read More »from Reverse Mortgages a ‘Festering Problem’ Enabled by Government: Whalen

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