Is Macy’s (M) about to be sold? There certainly does seem to be something brewing on the horizon. This past Friday, shares in Macy’s stock were up, and it appears that the company could be right at the brink of a takeover.

An analyst for Interactive Brokers Group by the name of Rebecca Darst has said that there have been plenty of rumors that a Macy’s takeover could happen for months now. There are rumors that have recently been renewed that it may be Edward Lampert who is interested in purchasing Macy’s. Mr. Lampert already controls Sear’s Holing Corporation.

The gossip about a possible takeover began in the early summer months, when the stores were showing a decline in sales that had been open for a year or more. As well as Mr. Lampert, another acquirer that has been rumored is Kohlberg Kravis Roberts & Company.

Bloomingdale’s and Macy’s both reported a rise in August sales which far exceeded expectations. These changes were noted in stores that had been open at least a fiscal year.
So, is there a takeover of Macy’s in the works? Will the company be bought out? We can only wait and see if the rumors are indeed true. But one thing is certain. If buyout eventually happens, owners of Macy’s shares can expect nice gains on their investment. If not, the stock price will almost certainly go down.

Yesterday was a huge day for stock market. Dow Jones has jumped 336 points, after Fed’s lowered the interest rate by half points. This was the biggest one day gain for Dow Jones in the last five years. And I am expecting markets to finish higher today as well.

Considering that most of you who read my blog are beginner investors, I will briefly explain why lowering the interest rate had such a dramatic, but positive effect on the stock market. Although interest rate and stock markets are not in direct relation, decrease in interest rates almost always reflects in stock markets going up. But why?

First of all, people who have their money in bonds and securities are now getting less back, because of lowered interest rates. So, they will usually reinvest that money into stock market. Higher demand will usually result in prices going up.

Lower interest rates give businesses more borrowing power. With more money on hand they can finance their future expansion, at lower rates, thus increasing the possible returns for investors. With economy expected to grow, more people are willing to invest their money into stock market. And on top of everything, most investors have expected a quarter points cut. Fed’s have decided to cut down interest rate by half points, which exceeded the expectations of most investors.

To sum it up, low interest rates are usually introduced when economy needs a boost, if unemployment is too high, and inflation low. Therefore lowering interest rates will give the economy a boost, but will usually result in inflation.

Here is the quick way to increase your credit score with just minutes of work. Pay down a balance, or at least most of it if you don’t have enough money.

Try to get a higher credit limit by calling your credit card issuers. If you have a decent credit score you should be able to get a credit limit increase. In addition to this, you can close down a few accounts if you have too many. It is said that perfect number of credit cards is somewhere between 4 and 6. Any more than that could hurt your score.

These are quick ways to somewhat increase your credit score. Considering you didn’t have any major credit lapses. Now did you?

Regardless, don’t expect your score to improve over night. These things can take time. You can also read my article on the site “how to improve your credit score” for more tips.

Would you like some cash with that burger? McDonald’s (MCD) announced recently that the company will be increasing its dividends by 50%, and, between 2007 and 2009, would be returning between $15 and $17 million in US currency to shareholders.
This increase in dividends represents a 3% yield and far exceeds the 25% estimate that the market had priced and his own 30% estimate. As a result of this increase in yield, the stock climbed over 6% and the day closed at $54.30.

Stephen Kron said that the money that will be returned to shareholders will come from several different sources, including cash flow that is expected to be strong from operations, current cash balances, options exercising will yield some cash, and there will be a debt increase, but only a modest one of $3 billion. There is no reason why anyone should think that the extra debt will affect the single-A rating of the company.

So if you are a shareholder in McDonald’s, the next time you go in there you can think about the wonderful return that you are getting from your investment, and enjoy your Big Mac, Coke and fries with a handful of cash on the side. What a way to end your meal! Much nicer than an apple pie or a McFlurry any day, huh?

On Friday, Domino’s Pizza Inc (DPZ) announced that David Mounts was going to be replacing Mike Soignet, starting September 17^th. Mike Soignet, who is vice president of distribution and procurement, has been with Domino’s over twenty years, will officially retire in October.

As of yet, there hasn’t been a replacement found for David Mounts, who is the current chief financial officer. Mounts was chosen for the promotion largely in part to his experience in the supply chain division at UPS Inc. Until a replacement for Mounts can be found, Bill Kapp will be standing in as acting chief financial officer. David Brandon, President and Chief Executive, is currently working to extend and renew his own employment contract. Everyone is certain that this transition will be finalized before the beginning of November.
In other Domino’s Pizza news, a new position has been created and filled, starting September 17^th. The company has announced that the naming of Patrick Doyle as president of the United States division.

So, no matter how you like your pizza: ultimate deep dish, classic hand tossed, Brooklyn style, or crunchy thin crust, you will be happy to know that, thanks to the recent changes in Domino’s Pizza, the stock closed at +.13 on September 14^th. No matter who is running Domino’s, you can be sure that your pizza will continue to be delivered hot and fresh in thirty minutes or less.

Scams, just like everywhere else, are also present in the financial industry. Since I would need many pages to describe most common scams in finance, today I will focus on one only.

This one is called “pump and dump”, or microcap stock fraud.

So what is the “pump and dump” scam? It involves false statements that hype the stock, therefore sending its price up. Scammers will usually send out millions of emails (or contact people in various other ways) claiming that certain stock will go up in matter of days, and that they have inside information unavailable to general public. People will then start buying this stock, sending its price up. Once the price is up, scammers will sell their stocks, which they purchased at low price before the hype began. Since the stock price was artificially inflated, it will go down, and many people will lose their money, after the hype is over.

This kind of scam usually works only with micro cap stocks, because it would be very hard to manipulate stocks of large companies with big market capitalizations and volume.

Micro cap stocks, also called penny stocks, have very small market capitalization and usually small volume, so several big purchases can send the price of these stocks sky rocketing. Also, there is much less information available for micro cap stocks, which usually trade on OTC – “over the counter” market, than for big companies that trade on Nasdaq. This scam also happens on Nasdaq for so called small cap stocks, but not as often, because it is harder to pull off.

For most scams, all you need is common sense to realize that something is not right.

Just think about it. If someone had an inside information, they certainly wouldn’t share it with you. Now would they?

Probably not. And I don’t blame you. I love playing video games, but until recently it never crossed my mind how huge gaming industry has become over the past few years.
In August of 2007, US gaming industry had $993 million retail revenue (this includes sales of software, hardware, and accessories). This is 46 percent increase over the past year’s August revenue of $679 million. And these figures do not include any PC software, hardware, and accessories.
Take Halo 3 for example. Microsoft’s predictions are that the release of this highly anticipated game will surpass record one day revenue that Spider Man 3 made, and that by the end of 2007 income will pass $1 billion mark! Yes, one billion, for a video game. This is serious money we are talking about, and this game is not being released for PC.
On the other hand, another game that was only released for the PC and Xbox 360, Bioshock, has sold over 1.5M units, at around $50 a piece, in less than a month!
I suppose it is only a matter of time before the gaming industry starts making money which equals or even surpasses film industry. Something that only a few years ago sounded like science fiction may become a reality in no time. I believe this industry is about to grow tremendously over the next few years, so take a deeper look into it. My predictions are that next few years will be huge, and this is only the beginning.

Yesterday, on my way to work, I dropped by one of nearby McCafes, and ordered one of those latte coffees everybody is talking about. I actually never went to McCafe before, so I was very curious about the taste of their new coffee. And I was very pleased, really. It costs less than Starbucks, which is somewhat expensive, if you ask me.

The whole event inspired me to take a closer look to the story behind the curtains and new McDonald’s development strategy.
There was an upscale sale of coffee products during the August, which were probably the inducement for September’s raise in the price of shares (MCD). MCD was pushed up for 3.2% on September 11, and reached $51.76, with new 52-week high of $53.55 during trading session.

I also noticed another thing: there was a huge raise in regular coffee sales through August, as far as 19%, and even bigger raise in the total sales of coffee (including coffee specialties, like lattes and cappuccinos) which peaked to 37% in July. Do you see any connection with McDonald’s introduction of its premium drip coffee last year?

As I see it, a great potential for McDonald’s is just to be widely uncovered in this niche. Of 21 McCafe in the United States, 10 were opened this year. There was an S&P’s research note, which said that further growth is to be expected, especially in Europe where it could reach even 15%, or slightly more than 10% in Asia-Pacific-Middle-East-Africa region.

Some restaurant industry analysts think that many people are switching from dining rooms, that are more expensive, to fast-food restaurants with good service and price policy, which, even if it is just a trend continuation, could be one more positive feedback for McDonald’s shares.

Considering that European McCafes are in their second year of expansion, there will definitely be another profit increase.
By connecting all the dots in the chain of events within McDonald’s business strategy, earnings are expected to raise, profits also, and therefore it seems like a good investing opportunity, even for risk-averse investors.

Definitely take a deeper look at McDonald’s as a possible investment opportunity this year. November through April is usually when stocks perform the best.

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When it comes to choosing a financial planner, there are certain steps that you should take to make the process go as smoothly as possible and to make certain that you get the financial planner who will best suit your needs and give you the advice and help that you will need. We’ll go through the steps one by one and by the time we are done, you will have all the information that you will need to make an informed choice about choosing a financial planner.

1. Figure out your goals

The first step in choosing a financial planner is to figure out what your goals are for your life and your finances. This will better assist any potential financial planners in figuring out how to best help you. Do you want a college education? A comfortable retirement? Or something else?

2. Decide how to fill your needs 

Next you should figure out how much financial planning help you will need, and whether a local office can help you or if you will need the services of a nationwide firm. Remember, with a wider range of services comes a bigger price. Before you pay a lot of money to a big firm make sure that you are going to use their services to the fullest.

3. Ask for recommendations

Talk to your family and friends and see if there is anyone that they recommend. Before making your choice, talk to three different candidates and make certain that they take into account the debt that you have when they are creating the plan that they will have for you.

4. Check the credentials of candidates

Once you have interviewed the possible planners, you should look into their credentials and see what they have to offer. If they are a certified financial planner, there are exams that they will have passed. Even if they aren’t certified, there may be areas of expertise that they offer like insurance and investing. You can also contact American Financial Planners and get a list of credentials and where planners can receive them.

5. Find out the planner’s philosophy.

Some financial planners strongly believe in investing, while others act more conservatively. Make certain that the financial planner that you choose is willing to take into account your comfort level and needs, since this is your money that will be affected.

6. Find out the bottom line

Before you choose a financial planner, find out exactly what the compensation will be for their services. Sometimes they sell financial planning products based on commission, while others will charge a flat fee. They may be willing to negotiate with you if you tihnk that their price is too high in order to get your business.

7. Ask for references

Request references from other clients who have similar needs and goals as you have. If the planner is unwilling to offer them to you, go with someone else.

8. How will you keep in contact

Set up a schedule for talking to your financial planner and find out how you will be in contact with them. Finally, find out what will happen if your finances begin to drop, if you will need to contact them or if they will call you.

When you are ready to invest your money in the stock market, it’s usually a good idea to get advice from a stock broker. Stock brokers know the business and will help you to make the right decisions when it comes to investments. But sometimes it’s hard to know how to select one. This article will take you through the selection process and help you to make the decisions that are right for you.

1. Determine what you are looking for

Before you choose a stock broker, it’s a good idea to figure out what exactly you will need from them and what your goals will be. Do you want a broker who will focus just on investments, or do you want one that will also educate you and help with financial planning?

2. Compare notes on different services

Depending on what you want, you may decide to go with a full service brokerage firm, or a discount broker might be adequate for your needs. Discount brokers work at a lower commission, but if they offer any advice it’s very limited. You will pay more for a full service brokerage firm, but they also offer a wider range of services.

3. Ask friends and family for referrals

It’s always a good idea to ask people you know and trust for referrals and advice when it comes to choosing a stock broker. Once you have some names, choose at least three to speak to before you make your final decision.

4. Meet with the candidates

Next, you will want to meet with the candidates and get a feel for what they are like. This is a good time to find out about their special designations or training they have, what their philosphy is when it comes to investment, and how long they have been in business. This is also a good time to see how comfortable you feel with them. After all, you are entrusting them with your money so you want to feel as if you can trust them.

5. Find out what how they are compensated

Before choosing a stock broker, find out what the fees will be. This way there aren’t any surprises. It’s important to ask about any requirements in regards to minimum purchases, and what the structures for the fees are. It’s also a good idea to find out if they get more commission on certain types of mutual funds.

6. Find out how often you will hear from them

If you are comfortable with talking to someone once a month, don’t choose someone who is going to call you with every little detail of a change in the stock market. Find out how often the stock broker checks in with clients and take that into consideration when choosing a broker.

7. Ask the broker for referrals

It’s always a good practice to ask for referrals to clients who have similar goals to your own. If the broker is unwilling, then go with someone else.