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I don?t like to throw around the ?B? word ? bankruptcy ? casually, but it?s a possibility when talking about BlackBerry maker Research In Motion (Nasdaq: RIMM??) .
I haven?t always been a RIM pessimist. In fact, I was one of the few bulls who unwittingly ignored the warning signs that RIM was failing to innovate, in favor of drooling over its enterprise business. That proved to be a foolish (small ?f?) decision, and I?ve since changed my view of the company to encompass the complete other end of the spectrum ? a possible bankruptcy filing.
I know what you?re probably thinking: ?Why even think about bankruptcy when RIM has about $ 2.1 billion in cash on hand, no debt, and a portfolio full of patents??
Historical precedence
The answer to that question is pretty simple: ?historical precedent says that no one?s going to come to RIM?s rescue, and the company could one day drown in its various obligations.
Eastman Kodak stubbornly refused to put itself up for auction months ago and was unable to find an adequate bid for its patent portfolio, despite putting 1000-plus patents officially up for sale prior to its bankruptcy filing.
Nortel went bankrupt and was only able to bring in bidders when its patent portfolio was auctioned off for $ 4.5 billion to Microsoft (Nasdaq: MSFT??) , Apple (Nasdaq: AAPL??) , and RIM. Nortel?s actual wireless business only sold for $ 1.3 billion.
However, the best example might be Hewlett-Packard (NYSE: HPQ??) , which purchased the ailing Palm for $ 1.2 billion in 2010. I personally figured Palm would go bankrupt and someone would step up then to buy its patent portfolio. Instead, HP stepped up to the plate, and wound up writing down not just the $ 1.2 billion it paid for Palm, but an additional $ 470 million in expenses, just five quarters later.
If anything, these recent cases serve as a reminder that failing tech companies with valuable patent portfolios offer little value until they reach bankruptcy court.
Black-and-blue-Berry
Based on various analyst estimates, RIM?s patent portfolio, which is filled with shared patents from Microsoft and Apple, could be worth anywhere from $ 1 billion to $ 4 billion. Clearly, the patents would be worth more had they not been shared ? but it is what it is. RIM?s cash balance is healthy now, at $ 2.1 billion, but that figure could be burned through quickly if the exodus away from RIM continues. Sales fell by 25% last quarter, and RIM has already warned of losses in its upcoming quarter, as its BlackBerry continues to lose ground hand-over-fist to Apple and phones running Google?s (Nasdaq: GOOG??) Android OS.
With a current market value of $ 4.7 billion, RIM may find some very short-term support, considering that analysts are focusing on the value of its patents (of which a median point would be $ 2.5 billion), and it has $ 2.1 billion in cash, for a total of $ 4.6 billion. This valuation doesn?t include RIM?s 20-some million enterprise and government customers, which should fetch some value, but that may be of little consequence considering that I expect RIM?s cash situation to rapidly deteriorate.
Innovate, or die trying
The precedent has been set and, if I were a betting man, I?d say this is RIM?s ship to right or go down with. Unfortunately, we?ve already witnessed a lifetime?s worth of shoddy decision-making over the past few years, so consider me not all that optimistic that RIM will survive long term.
RIM may have failed to innovate, but for these three stocks, innovation is exactly the reason why our analysts at Motley Fool Stock Advisor feel they?ll lead the New Industrial Revolution in the tech sector. Click here to find out their identity, and get your copy of this free special report.
It?s not Romney. Or Obama. It?s not Democrats, Republicans, or the Tea Party. In fact, it?s not politicians at all. It?s individual investors like you.
Since 1952, the S&P 500 has posted a gain in the last seven months of an election year 85.7% of the time. But if you want to set yourself up for maximum profits and minimum risk after the election, you need to have the proper investment strategy in place well before November.
That?s why we?ve asked our top advisors and equity analysts to weigh in on which investments will win if Romney does? which will win if Obama does? and what you can do to help boost your wealth no matter who wins in November.
It?s all part of our brand-new investor empowerment series, ?Invest Like a Pro: Savvy Strategies for the Next 4 Years and Beyond? ? which we?re making available to individual investors like you absolutely free for a limited time.
To get access to this exclusive bundle of informative videos, advisor roundtables, special reports, articles, and more, simply enter your email address below, click the ?Sign me up!? button, and then check your inbox for further details.
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La Salle University
Jennifer Ngo, now a special agent for the FBI, during her playing days at La Salle University
By Eve Tahmincioglu
Jennifer Ngo, 32, a special agent for the FBI, played basketball when she was in college. Elyse Darefsky, 54, an IT manager at Cigna, was a big collegiate volleyball and basketball player. And Sarah Ann Slater, 23, who starts graduate school at the London School of Economics in the fall, was a junior tennis champ.
All three women credit sports for their achievements beyond the playing field, and studies show playing sports in your youth can indeed contribute to future career success.
?For me, it was about being part of something bigger than yourself,? said Ngo, who also played soccer growing up. ?As I got older, it helped me with my career.?
Their experiences point to how important it is for girls to have opportunities in athletics.?They also?underscore the significance of Title IX, which paved the way for more gender equity in high school and college sports, and celebrates its 40th anniversary this month.
Engaging in sports in youth can help women, and men, attain career success later in life, and many prominent women often point to that experience as a reason for their ability to climb the ladder.
Irene Rosenfeld, CEO of Kraft Foods, played everything from field hockey to basketball when she was in high school; former Alaska governor and vice-presidential candidate Sarah Palin touted her sporting past as a basketball player for the Wasilla Warriors; and SEC Chairman Mary Schapiro was a lacrosse player in college.
As Title IX celebrates its 40th anniversary, hear from three women who've seen the battle from all sides.
Of her lacrosse background at Franklin & Marshall College, where she captained the first varsity team in 1977, Schapiro told Lacrosse Magazine in the March issue, that the game helped her professional life.
?Lacrosse is truly a team endeavor,? she said. ?You have work together, you have to be constantly mindful of where your teammates are, you have to be willing to be in the supporting role, you have to be able to read signals and be prepared to regroup ? all of these are important to workplace success. It also taught me to take risks.?
According to a report by research firm Catalyst published in May, 82 percent of women executives played organized sports after elementary school, and nearly 60 percent said it gave them ?a competitive edge over others in the business world.??
Learning how to compete is among the top life skills youth sport members gain from their participation, according to research from Boston University?s School of Education published last year.
There is ?a direct transfer of life skills from sport to work,? found the research titled ?Career Success and Life Skill Development Through Sports,? which was part of a doctoral thesis by Gavin Bruce Barton.
He found that besides competitiveness, sports participation also developed an individual?s work ethic, ability to handle pressure, resilience, teamwork and confidence.
Surprisingly, the study also found, that ?sport participation as a source of life skill development was cited far more frequently than family, work or education.?
And, the author added, ?Life skills developed in sport can contribute to later work success.?
You don?t have to tell Cigna?s Darefsky?s that. ?I learned more playing sports than I did in school,? she explained. ?I was an introvert, and the confidence that you gain playing sports, you can?t measure that.?
She recalled going on her first job interview at Cigna in her final year of college, right after her basketball team at Clark University had a huge win over Dartmouth. ?It gave me a sense of confidence,? she said, allowing her to nail the interview.
Slater, the recent grad who played tennis, also has seen the benefits.
Courtesy of Sarah Ann Slater
?Being a part of sports actively in my youth and throughout my adolescence really taught me a lot about discipline, time management, and taking responsibility for myself and my own successes or failures,? she said. ?Even though I am not active in competitive sports any more I?was able to successfully transfer those skills into other arenas of my life, mainly academics as a college student, and they continue to be a part of all decisions I make as I go forward with my life.?
Clearly, youth sports can be an ultimate career boon, and Title IX has opened the door for?many women to participate and then reap the future benefits, said Marilyn Strawbridge, professor of physical education at Butler University in Indianapolis, who has studied the impact of sports on women.
Despite the law?s success, however, we have a long way to go when it comes to ensuring more girls get some serious locker room time, an experience that will only help them as they go out into the work world.
?Title IX has been wonderful but there?s still parity to be reached,? stressed Strawbridge. ?Unfortunately we?re still seeing lower rates of sports participation by girls in high school and college and they still get a smaller part of the athletics dollar.?
And that?s a problem given the payoff sports engagement offers women later in their careers and in their lives overall, she pointed out.
Do you think that girls? (and boys?) participation in sports can help lead to greater success later in life?
186770
Yes
89%
186771
No
9%
186772
Not sure
3%
VoteTotal Votes: 35
?Women in sports are better equipped to view themselves as equals; they know how to compete and put themselves out there, and take risks for something better,? she explained. ?They live with consequence and are healthier individuals all the way around, mentally and physically.?
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Tennis legend Billie Jean King has been a tireless advocate for Title IX both before and since its passage. She reflects on her career and the landmark legislation.
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401k retirement savings plans are terrific ways to save for retirement. They use the power of investment and compound interest to deliver tremendous returns based on how much you put in each year. By the time you are able to withdraw your funds without penalty ? at the age of 59 ? ? the percentage of your total amount that was accumulated by your investments absolutely dwarfs the amount you put into it out of your monthly salary.
In other words, you?ll make far more for retirement with a 401k than you would simply by saving your money and putting it into a low-yield savings account. Plus, the fact that you gain access to free money through employer contributions is a huge bonus.
Still, having a 401k means you have to make certain decisions involving your investment allocations. Where should you put your money? What are the pros and cons of the options available to you? There are nearly two dozen investment options; which is the best for you? Here, I?ll cover the main five ? stocks, bonds, mutual funds, certificates of deposit, and money market accounts ? and give you an overview for each one.
I?ll start with money market accounts, because they are generally the safest option available. A money market account works by paying interest on your money when it is placed into money markets, or markets that buy and sell Treasury bills, bank certificates of deposits, federal funds, commercial paper, and the like. It?s a short-term market, not a long-term market like bonds and stocks.
Money market accounts deliver lower rates than other options, but they beat the return you?d get by having your money sit in a savings account or checking account. The advantage is that they are generally viewed as safe places to put your money because they are insured by the FDIC and aren?t very volatile.
Pros: Low volatility and risk; insured by FDIC
Cons: Lowest rate of return
You can also allocate your money into certificates of deposit, which are financial products that give you a certain rate of return if you keep your money in them for a certain period of time (called a fixed term). You can find CDs that have terms of one month, three months, six months, one year, or more ? up to five years, in most cases. They deliver a predictable rate of return that can be higher than what you receive with a money market account if you go for longer maturities.
The downside, again, is that they do not offer nearly as high a rate of return as some other options. Additionally, CDs are susceptible to inflation because they are not very liquid if you go for bigger returns through longer terms. Rising inflation can eat into and even vanish your gains.
Pros: Low risk; insured by FDIC
Cons: Not as profitable as most options; susceptible to inflation for long terms
Bonds as an asset class offer a step up from either of the two mentioned above. Heading into this territory can be a bit tricky, though, because there are several types of bonds out there. In general, there are three types most 401k participants use: municipal bonds; Treasury bonds; and corporate bonds.
Treasury bonds (T-Bonds) are issued by the U.S. Treasury and are viewed as the safest investments in the world because they?re backed by the U.S. government. They come in three flavors, depending on their maturity: T-Bills (mature in one year or less); T-Notes (mature in 2-10 years); and T-Bonds (mature in 20-30 years). T-Bonds and T-Notes both pay what is called a coupon payment every six months; this amount is a percentage of the note?s value paid to you. Collectively, all three of these are called Treasurys.
Rates of return (called ?yields?) for these vary; historically, they have underperformed stocks (except from 2002 to 2011, when they actually outperformed stocks by a significant amount).
Municipal bonds are similar to T-Bonds in that they are issued by a government agency and come with a term, a maturity, and a fluctuating interest rate. Most municipal bonds are considered quite safe and generate decent returns, but they vary considerably because not all cities and local governments are created equal. These generally return lower rates than all other bond types. But ? and this is a big but ? these are usually exempt from federal, state, and local taxes.
Corporate bonds offer the largest rates of return, typically, and are issued by corporations as a way to finance their operations. They are similar to the other two bond types, but have a higher risk of default than either. Of course, that?s why they also offer better returns.
Pros: T-Bonds are the safest investments you can make; less risk than stocks; predictable returns
Cons: Less liquid than the above assets; outperformed in most years by stocks; subject to some volatility; default wipes out value
A mutual fund is a collection of assets that you can own under the umbrella of the fund. Most are managed professionally, either actively ? a fund manager trades assets regularly for maximum return ? or passively ? they are tied to an index or have some automated way to change asset allocation. You can find mutual funds for virtually every asset class, including bonds, money markets, and stocks. Your average investor pictures stock-based (or equity) mutual funds when they think of the term.
Mutual funds typically offer better returns than bonds, CDs, or money market accounts but smaller returns than investing in a pure stock portfolio. They are safer than stocks, though, and also give you the chance to easily diversify your portfolio, which insulates you a bit from downturns in the market.
Mutual funds, though, come with fees that are paid regardless of if the fund performs well. Plus, you don?t have control of what assets the fund owns.
Pros: Better return than bonds and the other above asset classes; diversification; safer than stocks
Cons: Lower returns, on average, than stocks; subject to volatility and risk
Finally, we are at the main asset most people think when they picture using their 401k assets to invest: stocks.
Stocks typically offer a far greater return than any other asset class and are very flexible. From 2006 to 2011, stocks routinely topped the charts of the annual returns of several benchmark asset classes, bested usually only by gold. You can buy shares of stock in thousands of companies across the world, and this stock can be sold quickly and easily for cash, making it a very liquid asset.
The disadvantages of stocks, though, are considerable. For starters, it takes some experience and knowledge to pick the right stocks. You can remedy this somewhat by choosing an exchange-traded fund that is traded like a stock but covers several different assets. Also, stocks are volatile and generally the riskiest assets, with the possible exception of credit default swaps, high-yield ?junk? bonds, and other similar assets. You can lose far more, on average, with stocks than you can with bonds, mutual funds, or any other asset class.
Choosing stocks is for people who want more of an aggressive strategy in their 401k portfolio.
Pros: Usually offer the highest rates of return; liquid; provide thousands of choices
Cons: Volatile; riskier than the other major asset classes; harder to invest in successfully
Ideally, you should have a well-rounded, balanced, and diversified portfolio with a little bit of everything thrown in. Bonds and money market accounts and certificates of deposits provide some balance against a turbulent stock market and give you a safe harbor for your money; stocks give you the earning power that can turn your contributions into a sizable nest egg.
You need a little of all to truly make your portfolio successful. But, the degree to which you choose one asset over the other is largely dependent on your risk profile.
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Identity theft is the world?s fastest growing crime. In the US alone, there are tens of thousands of identity theft victims daily. It?s likely that a high number of these victims include businesses of all sizes.
If Microsoft or Wal-Mart loses customer data to identity thieves, they simply pass the problem onto their extensive legal teams and security experts. But what if your small business gets caught up in some crook?s identity scheme?
The consequences can be devastating. The average victim of identity theft spends 1,600 hours sorting out all the problems and confusion. Losses can quickly mount into the thousands of dollars.
To make matters even worse, the federal government demands you keep all your customer and employee information safe from thieves. If it?s stolen, you can be liable for big fines and harsh penalties.
If all this makes you just a little nervous, I can?t say I blame you. This is the fastest growing crime in history, and touches almost everyone. It could easily devastate your business in a most expensive and public way ? and that?s something to worry about.
Keep in mind as soon as it becomes known your customer or employee information was stolen, creditors and customers will start to have second thoughts about doing business with you. This trend has sadly been borne out time and time again.
Fortunately there are some solid, positive answers appearing. Recently one of America?s top legal service providers teamed up with one of the world?s most respected security companies. The result is a very inexpensive service that monitors credit reports 27/7 to catch criminals in the process of committing a crime.
If suspicious activity appears on a credit report, the alarms are sounded immediately. That can quickly limit and stop unwanted activity.
Furthermore, you?ll need legal help. A qualified team of experienced lawyers can help you sort through even the most daunting identity theft problems.
And while we?re talking about lawyers, don?t skimp on legal representation when dealing with contracts, problem customers, and problem suppliers. The biggest companies and richest individuals don?t make a move without first consulting their attorney ? you shouldn?t either. One of the reason so many small businesses fail is they can?t or won?t afford legal help.
Again, this much-needed legal representation is now available for just a few dollars per month. In the past, a business would keep a legal firm on retainer for thousands per month. Because most people don?t need a lawyer all that often, top attorneys found they could charge very little per month, help those who asked for help, and still come out ahead. It?s a win-win for both lawyers and the business owners who need them.
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Now it's the conference of compromise. The league got dragged into playoff talks over the wishes of some presidents and chancellors who care more about the Rose Bowl and maintaining the best regular season in sports.
The Big Ten flirted with a plan to use on-campus sites for semifinal games before realizing it wasn't feasible, in part because players insisted they wanted a true bowl experience.League officials remain open-minded about some aspects of the final details. Presidents and chancellors met Sunday at Big Ten headquarters in Park Ridge, and they declined public comment until Monday, when Nebraska's Harvey Perlman, Indiana's Michael McRobbie, league Commissioner Jim Delany and BTN President Mark Silverman will take reporters' questions on a conference call.
But from all indications, the league will not draw a line in the sand on the prickliest remaining issue ? the makeup of the playoff. The Big Ten, Pac-12, ACC and Big East favor an automatic berth for the three highest-ranked conference champions ? plus a wild-card fourth team.
The SEC and Big 12 do not want to give automatic inclusion to conference champions; they favor a playoff with the four "best" teams, as stated by SEC Commissioner Mike Slive.
Best? By what measure?
Although they're in the minority on the issue, if the SEC and Big 12 hold firm, there is a compromise: Form a selection committee to choose the top four teams but give it instructions. Treat it more like a jury evaluating evidence than judges at a beauty pageant.
Big Ten officials would want the committee of perhaps 12-14 members to enter its deliberation with certain principles:
? Ignore the polls, which are flawed because they prejudge teams by ranking them in the preseason.
? Reward conference champions.
? Penalize teams that play FCS foes.
? Reward teams that play challenging nonconference schedules.
? In a tiebreaker between two teams, emphasize the winner of a head-to-head contest.
That last one might seem obvious, but last season Oregon beat Stanford. In Palo Alto. By 23 points. And yet, because Oregon had one more loss ? to the beast that was LSU ? the Ducks finished the season ranked fifth. Stanford was fourth.
On top of that, Oregon won the Pac-12 championship game.
So, Mr. Slive, which was the "best" team ? the one that finished fourth, thanks to flawed polls and computers with mostly hidden formulas, or the Pac-12 champion?
As negotiations continue on a playoff that would begin in the 2014 season, that's what the Big Ten will emphasize. Its officials will say it also wants the best teams to qualify for the playoff. But it will present a different definition of best.
The Big Ten began its internal playoff discussion by broaching the subject with its football coaches May 17, 2011. The progress in less than 13 months has been astounding considering the colossal impact a playoff will have.
Three key meetings remain, the first two in Chicago: on June 13, commissioners of the 11 BCS conferences and Notre Dame athletic director Jack Swarbrick will meet; on June 20, commissioners from all the leagues will gather; on June 26, the almighty Presidential Oversight Committee will huddle in Washington, D.C.
Expect the discussions on revenue-sharing, the length of a TV deal and a selection committee to bleed into the summer.
BCS officials can wait until September or October to negotiate with ESPN and potential partners NBC, Fox and Turner Sports. (As future technologies emerge, partnerships also could be formed with giants Apple, Google and Facebook.)
By then it should be clear that the Big Ten, once an obstructionist, has emerged as a facilitator.
tgreenstein@tribune.com
Twitter @TeddyGreenstein
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This juice fast has brought on some major self-realizations:
Overall, things are still going well. If I don?t have enough juice, I get hungry, and then I crave bad-for-me foods, but as long as I get enough juice and water in my system throughout the day I feel fine. While I must confess that I kind of want to have a burger when this is over (or maybe split one with Jordan =), I?m actually excited about eating healthier foods. I?ve been looking for tasty vegan/vegetarian recipes online (Forks Over Knives has some good ones, and also another food documentary by the same name, if you?re interested), and I?m generally looking forward to eating better, living better, and breaking these bad habits.
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