Herald and Review from Decatur, Illinois • Page 46

F2 MONEY SUNDAY, NOVEMBER 25, 2007 DECATUR, ILLINOIS www.herald-review.com ASK THE FOOL THE MOTLEY FOOL Our mission: To inform, to amuse and to help you make money GFOOL'S SCHOOL Learn to balance Our friend the balance sheet is a snapshot of a company's financial condition at a single point in time (typically the end of a fiscal quar ter or year). For your own successes such as Google and MasterCard are not the norm. Many times, companies making their debut on the stock market have little in the way of a track record that you can examine Many times, they're not even very profitable yet. It's often best to hang back and see how the stock fares in its first years. Many IPOs surge quickly, only to fall cylinders during the quarter.

Overall revenue from investment advisory fees was up 29 percent from the prior year, with growth coming from fees collected on mutual funds and managed investment portfolios. Total assets under management were up 4.5 percent over the prior quarter and 19 percent since the close of 2006. Administrative fees rose 16 percent. On the expense side, compensation and related costs rose almost 24 percent, which management attributed to growth in head count, but overall expenses grew less than 23 percent, showing some nice operating leverage. Looking at the next quarter, T.

Rowe's CEO said the company continues to like stocks in the long term (big and that it sees continued global economic growth and expects the and can't yet use. "Inventory" reports how much product is in various stages of preparation. It's cash tied up in materials that haven't yet been sold. Not so good. Other balance sheet assets may include investments, "prepaid expenses" (items such as insurance that are paid ahead of time), and "property, plant and equipment." Liabilities are likely to include short-term (also called debt and long-term debt.

Debt is not necessarily bad, although it's best to not see much. In a sense, debt can be considered an asset, as it often represents cash that the company is putting to work. Ideally, it's increasing the company's value. "Accounts payable" represents invoices not yet paid. These can also be good, as they often reflect a company delaying payment until due and using the money in the interim.

Finally, shareholder equity is the portion of the company that stockholders can claim. personal balance sheet, you'd list all your assets (house, car, savings accounts, subtract your debts and obligations (mortgage, credit card debt, and end up with your net worth. Companies essentially do the same thing, and you can gain valuable insights into their financial strength by studying balance sheets. The balance sheet has three main parts: assets, liabilities and shareholder equity. Assets are set equal to or balance liabilities and shareholder equity.

But oddly enough, some assets can be bad and some liabilities can be good. Here's why. In assets, you'll find items such as "cash and cash equivalents" and "short-term investments," reflecting how much unused gunpowder the company has. These assets are good, but most other assets are not as good. Consider "accounts receivable." That's money from sales the company hasn't yet received Write to Us! Send questions for Ask the Fool, Dumbest or Smartest) Investments (up to 100 words), and your Trivia entries to Fbolfool.com or via The Motley Fool, ATTN: Newspaper Mail, 123 N.

Pitt Alexandria, VA 22314. Sorry, we can't provide individual financial advice. Simply put, it's the difference between assets and liabilities. More on this riext week, when we'll also discuss what you should look for on a balance sheet. MX DUNISEST INVESTMENT Dropped like a rock I was convinced that the initial public offering (IPO) of private-equity giant Blackstone Group was going to follow MasterCard and Google through the roof.

Instead of doing that, it dropped like a rock, think the price that I officially bought in at was around $36. With the price recently in the $20s, it is hard not to try to buy again so that I don't have to eat the whole loss. Al Zutz, Bemidji, Minn. THE FOOL RESPONDS: Adding to a losing position is often a bad idea, unless you've done enough research to be convinced that the company has a terrific future. It's also risky to jump into IPOs at their outsets, because IPO information later next week.

That's what happened last year. Investors, worried that consumer spending was in the midst of a major erosion, sent the Dow Jones industrial average down 1.2 percent on the first full session after Thanksgiving. But, experts later felt it wasn't all that bad and stocks that week were able to rebound. In the past decade, the Dow, which now includes Wal-Mart and Home Depot Inc. among its components, ended lower on the first Monday after Thanksgiving in 1998, 1999, 2001, 2002 and 2004 to 2006.

It finished higher in 1997, 2000, and 2003. The biggest post-Black Friday surge during the past 10 years was in 2003 when the blue chip index soared 1.16 percent. But that had more to do with a pair of economic reports on manufacturing and construction than a strong retail sales reports, according to analysts. One reason offered for the retreat is that stocks tend to Investors shouldn't gauge economy based on Black Friday back to Earth later. Do you have an embarrassing lesson learned the hard way? Boil it down to 100 words (or fewer) and send it to Motley Fool co My Dumbest Invest ment.

Got one that worked Submit it to My Smartest Investment. If we print yours, you 11 win a Fool cap! THE MOTLEY FOOL TAME T. Rowe's earnings Third-quarter earnings from asset manager T. Rowe Price (Nasdaq: TROW) underscored that not everyone under the financial-services umbrella is smarting from the recent credit lockup and market turbulence. The company's earnings per share and revenues were up 37 percent and 27 percent, respectively.

The company hit on all run up in the week ahead of Black Friday. Since the start of the decade, the Dow has only shown declines in 2000, 2001 and 2006. Analysts say that could represent some bullishness by investors ahead of holiday sales data, and because the week of Thanksgiving tends to have light trading. This past week, major indexes fell amid growing concern that the unfolding credit crisis will hurt the already weakened financial system and could spill into the broader economy. The Dow fell 1.49 percent during the week, the Standard Poor's 500 index shed 1.24 percent, and the Nasdaq composite dropped 1.54 percent.

Peter Dunay, investment strategist at Leeb Capital Management, said Wall Street is too preoccupied with the credit market turmoil to worry that much about holiday shopping. So far, the nation's biggest banks have written down about $75 bil- QHow can I buy small amounts of stock to give to my grandchildren? M.K., San Ramon, Calif. A You can open a direct investment plan account with one or more companies. Often called DRIPs or DSPs, they permit you to bypass a broker when buying stock, and hundreds of companies offer them. Learn more at WAvw.dripcentral.com and www.fool.comSchoolDRIPs.

htm. Some newer (but often more expensive) options are www.registerstock.com, www.oneshare.com and www.frameastock.com. Should my 10-year-old invest in savings bonds? B.B., South Bend, Ind. Alt depends. If the money is for college, then it has about eight years to grow.

If it's for her adulthood, it might grow for a few decades. Investing in "safer," less volatile investments such as savings bonds or CDs will give you a modest return and minimize losses. But over most long periods of time, stocks will outperform bonds and CDs, so consider them, too. Their downside is that we can't know how the market will fare in the next months or years. In general, though, the longer you leave your money in stocks, the more likely you'll be to do well.

With stocks, it's best to invest money that you won't need for at least five years (or 10, to be more conservative). To invest in stocks, perhaps start with an index fund, such as one based on the 500. You might also invest in the stock of a few companies that your children know and like, such as Hershey, Disney, PepsiCo, Wal-Mart or Microsoft. Then, you can follow the fortunes of the companies, and your investments together, as they learn about the stock market. Learn more at www.

savings bonds.com, www.indexfunds. com and www.fool.com. Name that company I was founded in 1906 in Rochester, N.Y., as The Haloid and I got my current name in 1961. Today, based in Connecticut, I'm the world's premiere document-management company, employing more than 50,000 worldwide, including a female CEO. I rake in about $16 billion annually, and I spend nearly a billion dollars per year on research and development.

Among other things, I offer printers, digital presses, multifunction devices, digital copiers, supplies, software and support. I hold more than 8,000 active U.S. patents. I've recently been named one of America's most admired companies. Who am Know the answer? Send it to Motley Fool with Foolish Trivia on the top, and you'll be entered into a drawing for a nifty prize! tant from a trading standpoint." Stores are hoping for a surge of shoppers during the holiday shopping period after many consumers pulled back in recent months.

Merchants hope longer hours and deeper discounts will help make sales goals even though consumers are facing a barrage of troubles, such as a slumping housing market, tight credit and rising fuel prices. So far, the gimmicks seem to be working. Shoppers shrugged off lead-tainted toy recalls and worries about the economy and jammed stores before dawn Friday to grab discounted TVs, toys and the Nintendo Wii. But investors need to see more empirical evidence such as same-store sales figures before determining how retailers fared during the period, Larson said. Beyond any dramatic comments from the likes of Wal-Mart Stores the interpretation of sales data might shift as analysts get more By JOE BEL BRUNO AP Business Writer NEW YORK Investors might not want to place too much faith in the notion that a strong start to holiday shopping might breathe new life into the stock market.

Black Friday may have gotten the season off to a good beginning: Many retailers reported, anecdotally, seeing more people than last year taking advantage of the day's deep discounts. One day does not a season make, however. Investors want to see the euphoria of the first shopping day of the season persist all the way until Dec. 25, and beyond, before they place a bet on how Christmas went. "Consumer spending is always something we pay attention to; we want to see higher traffic on Black Friday," said Ryan Larson, senior equity trader at Voyageur Asset Management.

"But results from just one day isn't going to do it the follow-through is more impor Tellme Networks Inc. 52-wk Hi Lo 52-wk Hi Lo Name Last Chg Name 41.00 19.00 AMR 20.65 42.97 31.94 Inc 37.63 59.50 46.22 AbtLab 55.49 21.91 16.76 Aegon 17.54 54.B6 39.00 Airgas 46.60 15.43 7.28 AlcatelLuc 7.56 66.14 48.90 Allstate 50.09 74.40 59.11 Altrias 72.97 55.08 47.10 Ameren 53.59 55.19 46.05 Anheusr 50.19 192.6876.77 Apple Inc 171.54 29.10 2202 Apptebees 25.20 39.65 30.20 ArchDan 35.59 35.46 25.24 AsscdBanc 26.48 140.29104.53AutoZone 107.24 79.77 58.62 BP PLC 71.31 60.98 43.38 Baxter 57.89 56.69 41.85 BestBuy 48.02 .64 .18 .76 .58 .19 .87 .56 .06 .95 3.08 .26 .46 .67 1.83 .20 1.38 .42 .77 .86 .68 .81 .96 .30 .96 .69 .92 .97 .05 .83 47.96 38.89 53.90 43.79 10.95 6.02 46.46 30.87 56.75 39.26 84.92 57.83 95.27 69.02 35.42 21.03 52.94 33.05 39.52 29.90 9.70 6.85 4215 33.90 43.20 24.50 73.43 43.82 36.90 16.60 53.48 38.15 42.01 27.77 17.41 10.35 56.66 37.52 27.54 18.75 121.4688.77 41.57 31.05 53.25 40.15 79.55 46.99 31.94 21.12 35.65 13.98 74.72 54.40 35.74 22.05 59.92 40.79 58.89 4235 98.68 50.50 37.50 26.60 73.64 47.56 22.59 15.15 38.94 18.00 DowChm DuPont Dynegy EnPro EqlRes Exelon ExxonMbl FamilyDIr Fastenal FMidBc FordM GenElec GnMotr Goodrich Goodyear HewlettP HomeDp IkonOffSol IngerRd Intel IBM IntPap JPMorgCh Kohls Kroger LeeEnt LincNat Lowes McDnlds Merck MemllLyn Microsoft MorgStan Motorola NaUCity 39.83 24.58 BobEvn 50.74 32.13 CBRLGrp 35.75 25.57 CBS 87.19 23.04 CPI 51.88 33.50 CSX 49.87 30.44 Cabot 29.95 23.02 Caseys 87.00 57.98 Caterpillar 95.50 64.99 Chevron 57.00 30.50 Citigrp 63.45 45.56 CocaCI 27.25 18.12 Corning 51.16 35.27 Crane 111.65 57.33 Daimler 160.49 86.52 Deere 36.79 31.02 Disney 30.26 33.81 26.58 26.57 41.31 31.34 29.05 68.63 86.67 31.70 62.30 23.03 42.99 97.19 156.64 31.84 2.05 14.58 .34 45.25 32.59 DonlleyRR 36.11 .16 offers a free voice-activated system that provides stock information. Call 1-800-555-8355. U.S. housing problems to work themselves out.

T. Rowe's stock has risen considerably this year, and it isn particularly cheap at 25 times expected 2007 earnings. Still, given its strong fund flows, stock repurchases, lack of debt and solid cash position, it's hard to dismiss it as an investment candidate. lion worth of securities tied to subprime mortgage-backed debt and that number could grow quickly as the fourth quarter closes. "We're always hoping for good news from the consumer," said Dunay.

"But, it doesn't matter how much consumers spend when you're talking about going on $80 billion of writedowns. The financial sector is just a wreck." This past week, the Standard Poor's 500 index had lost all its 2007 gains before recovering on Friday it's up 1.58 percent this year. The Dow is up 4.15 percent, and the Nasdaq composite is up 7.51 percent. "The only side that's interesting is we're down so much in recent weeks, and expectations for consumer spending are a little lower," Dunay said. "Regardless, the tough part for the market isn't the retailers its that these financials are carrying a boulder on their backs." Gift cards have added concerns McClatchy-Tribune News Service NEW YORK If you're planning on giving someone a gift card this Christmas, you're in good company.

Gift cards are fast becoming one of America's favorite presents. U.S. consumers are expected to spend more than $26 billion on gift cards this holiday season, according to the National Retail Federation. This makes sense when you consider that giving a gift card is a less taboo way of giving cash, says Ben Woolsey of Creditcards.com, a Web site that allows customers to vet credit card offers. If you are one of the more than two-thirds of Americans who plan to give a gift card this winter, here are two downsides to keep in mind: 1.

Your money won't go as far with gift cards. A $25 gift card will cost you more than the face value, generally about $4 more, plus shipping and handling, according to Woolsey. An extra few dollars here and there can take a big chunk out of your holiday budget, if you aren't careful. Beyond that, gift card issuers charge a range of fees to the user. If you are unlucky enough to lose the card, you'll be charged anywhere from $5 to $15 to replace it.

2. Gift cards aren't credit cards. It's true that gift cards can be used in many of the same venues as credit cards, but they aren't interchangeable. As a rule, gift cards cannot be used at hotels or to rent a car. Why? To guarantee you'll have enough money to cover your bill, these types of merchants typically block out an amount of money that can be two to three times higher than the actual service fee a fee far exceeding the value of most gift cards.

Assets Total ReturnRank Pet Name Obj (SMlns) 4-wk 12-mo 5-yr Load American Funds GwthFdA XG 96,715 9.0C 92.3B 5.75 American Funds CapWGrA pGL 85,435 19.4A 167.8A 5.75 American Funds CaplnBldA BL 83,526 12.8A 101.8A 5.75 Fidelity Invest: Contra XG 82,647 16.07B 119.9A NL American Funds InvCoAA LV 78.117 5.3A 74.C 5.75 American Funds WshMutA LV 70,902 3.6B 67.8D 5.75 American Funds IncoFdApBL 69,835 5.4C 81.5A 5.75 Stock LV 68,711 2.0C 98.8A NL Vanguard Idx Fds: 500 SP 68,416 4.3A 68.5A NL American Funds EupacAp IL 67.384. 22.4A 172.48 5.75 PIMC0 Instl PIMS: TotRet IB 66,729 .9 7.6A 30.5A NL Fidelity Invest Diverlntln IL 59,940 18.9B 179.1B NL IntlStk IL 54,628 15.3C 225.0A NL American Furrfs NewPerAp 6L 51.569 18.4A 132.1B 5.75 vanguard Idx Fds: TotStkn XC 50,929 4.1C 77.7C NL Vanguard Instl Fds: Instldxn SP 47,686 4.4A 69.5A NL Fidelity Invest Magellan LG 47,337 13.7A 65.07B NL American Funds A FundlnvA LV 40.236 11.9A 114.5A 5.75 American Funds BalAp BL 39,123 6.2B 60.0B 5.75 Equity Objectives: A Capital Appreciation. El Equity Income Fl Fixed-income Growth Growth Income GL Global It International ME Miscellaneous Equity SC Small Company Growth. Bond Objectives: A8 Corporate GG General US GM General Municipal HC -General Corporate High-YieW HM High-Yseid Municipal IB Intermediate Corporate IG Intermediate US IM Intermediate Municipal MP Mixed PortMo NM -Insured Municipal SB Short-Term Bond SG Short-Term US SM Short-Term Municipal SS Single-State Municipal WB World Bond. FOOTNOTES: New 52-week tow.

dd Loss in Preferred, Split or stock dividend of 25 percent 52-wk Hi Lo Name Last Chg. Last Chg. 40.15 .88 44.69 .34 59.77 45.38 NorflkSo 49.55 .88 82.42 63.02 PPG 66.501.09 87.18. 39.98 Penney 41.30 1.23 76.29 61.21 PepsiCo 75.51 .47 27.88 22.29 Pfizer 2298 .63 73.85 60.42 ProctGam 7286 .60 35.00 16.42 RadioShk 18.55 .24 38.17 22.84 RegionsFn 24.22 .70 23.25 14.38 Saks 19.09 195.18106.88SearsHldgs112.58 226 18.10 10.15 SteaknShk 1053 61.24 35.18 Stricycles 55.19 97.00 72.90 3M Co 82751.51 55.42 37.46 TycolnUn 39.83 .59 9.70 4.85 Unisys 5.14 .15 79.72 68.66 UPSB 70.92 .78 46.24 34.00 VerizonCm 42.64 .69 45.03 33.74 ViacomB 40.70 .50 51.44 42.09 WalMart 45.73 .87 49.10 37.10 Walgm 39.73 .33 118.0072.10 Whrtpt 77.881.85 62.20 43.65 Wyeth 46.90 .70 7.36 32.44 53.40 .86 80.64 .34 88.29 1.25 22.82 .62 38.47 .26 31.29 .90 7.19 .24 37.67 .50 27.16 .77 69.96 1.48 26.58 .50 49.17 .29 28.95 .90 12.67 .29 48.70 .66 25.07 .44 104.05 1.83 32.89 .52 41.95 1.27 48.721.13 28.00 14.72 59.76 2.21 22.27 .16 57.72 .39 57.66 1.14 53.54 1.73 34.11 49.891.38 15.71 .38 19.55 .86 last 12 mos. New issue In past 52 weeks, pf or more in past 52 weeks.

u-New 52-week high. Last Chg Chg Name Last Chg Chg 8.31 1.62 2.16 .40 10.40 1.92 12.45 2.28 4.07 .74 24.2 Natrol Delcath Ziopharm Pharmion KewnSo 4.29 2.02 2.13 .94 3.35 1.12 65.6216.34 17.52 4.18 89.0 79.0 50.2 33.2 31.3 22.7 22.6 22.4 22.2 ($2 ok Losers or more) a Name Last Chg Chg Jamba un 3.84 ChinaTDvlf 4.87 Deswell 6.22 CalifCstJ 5.34 Iridex 2.58 Name Vol (00) Last Chg PwShsOOQ739301849.84 ETrade 3400881 5.33 Microsoft 2835249 34.11 .02 Intel 2173266 25.07 Cisco 1814494 28.69 These four tables fist the 10 best-performing mutual funds over the' 1 3-week or three-year periods. A fund's return for the other time periods are included to provide a better picture of an overall performance. 52-Week Daily Wkly Wkly YTD High Low Name Last Net Chg Net Chg Chg Chg Dow Jones Industrials 12,980.88 181.84 4.15 5,487.05 4,346.39 Dow Jones Transportation 4,451.07 84.47 537.12 443.78 Dow Jones Utilities 523.75 1.88 3.70 14.66 10.387.17 8,802.62 NYSE Composite 9,582.98 177.76 4.86 2,562.20 1,116.16 AMEX Index 2,384.22 46.25 15.94 2,861.51 2,331.57 Nasdaq Composite 2,596.60 34.45 7.51 1,576.09 1,363.98 500 1,440.70 23.93 1.58 926.67 792.42 834.48 10.82 3.74 856.48 736.00 Russell 2000 755.03 14.73 15,938.99 13,769.16 Wilshire5000 14,518.19 229.90 1.83 Best 13-week Performance Total Return Pet Name NAV 4-wk 13-wk 12-mo 3-yr Load Midas Midas Fd 5.92 40.0 42.7 161.9 NL ProFunds Inv PrecMetal 53.69 38.6 35.8 68.2 NL US Global GldShr 19.19 1.2 37.6 21.9 122.6 NL Van Eck InlnvGldA 20.79 .4 36.4 36.9 134.3 5.75 Direxion LatinAmBul 34.43 35.3 90.0 NS NL Amer Century GlblGoldn 23.38 2.1 34.8 25.0 80.8 NL Fidelity Gold rn 44.86 .8 34.6 33.7 111.0 NL Evergreen PrecMtl A 72.24 34.3 32.0 116.2 5.75 PIA OCM Gold 22.68 1.1 34.2 32.2 100.4 4.50 Evergreen CPrecMHCt 68.38 34.1 31.1 111.7 NL Best 3-year Performance Total Return Pet Name NAV 4-wk 13-wk 12-mo 3-yr Load Direxion LatinAmBul 34.43 35.3 90.0 NS NL Matthews China 38.85 18.4 78.1 181.7 NL Dreyfus GrChinaA 54.27 11.1 75.5 196.5 5.75 Dreyfus GrChinaCt 51.22 10.9 74.2 189.8 NL Dreyfus GrChinaBt 51.26 10.9 74.1 189.4 NL Guinness ChinaHK 41.98 19.9 71.1 135.2 NL Columbia Class 67.39 20.3 70.9 195.9 NL Columbia Class GrChinaA 64.85 20.3 70.5 193.8 5.75 Columbia Class GreatChinaC t63.93 20.1 69.3 187.2 NL Columbia Class GrChinaBt 63.10 20.1 69.2 187.2 NL Name Last Chg Chg Name Quanex CBRE Rtt JMPGrpn BWAYn DowneyFn 49.3712.63 7.37 1.31 8.91 1.42 11.24 1.74 34.60 4.61 34.4 21.6 19.0 18.3 15.4 LehJYen wt Rentech GenMoly RaserT nya Accel r8 Losers ($2 os a Losers Name Last Chg Chg Name LAST WEEK'S TRIVIA ANSWER: I'm an agricultural cooperative founded in 1930 and owned by more than 750 growers in the United States and Canada. Most of my products are based on a fruit grown primarily in Wisconsin and Massachusetts that's commonly harvested in large beds of water.

It's one of only three fruits native to North America. In 1995, 1 introduced dried Craisins. I'm North America's leading producer of canned and bottled juice drinks, and my offerings are sold in dozens of countries around the world. I'm popular around the holidays. My annual sales top $1 billion.

Who am (Answer. Ocean Spray) Last Chg Chg AdvBattn 3.78 CitiAMD08n 7.19 Minrad 2.28 EnovaSys 3.20 GlblScpen 4.50 Most Active Name Vol (00) Last Chg SPDR 9786873144.13 SPFncI 4625264 29.27 iShR2K nya3848813 75.06 PrUShQQQ1096736 40.82 .92 879031 56.99 1.53 NoahEdn 6.87 FredMac 26.47-14.25 TrinaSol 37. 1 1 -1 6.40 Giantlntn 11.50 PulteH 9.63 I SrlCrstACTFytio Name Vol (00) Last Chg CntwdFn 3623467 9.65 Citigrp 3436452 31.70 FordM 2080659 7.19 Pfizer 1758919 22.98 FredMac 1671048 26.47 i.