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Show cs DAILY THE WALL STREET JOURNAL HERALD Sunday, December 9, 2007 SIM, STARTING OUT LOVES MONEY Naughty or Nice, a Child Deserves Presents With Santa's dates fall near one arrival parents are another. Why snouia l spend any money on him when he has wasted $44,000 kids everywhere that the key to holiday fortune is to forsake their usual naughtiness. The big guy, kids are told, is making that list and checking it twice. Misbehave, and you may find a dirty lump of coal waiting in Jk your stocking. " Right? I Like so many kids, heard that threat annually from my grandmother. Not once, though, did I ever awake Christmas morning to a lump or lignite in stead of holiday in scholarships. Am I sup loot. My granposed to reward this?" In conversation, Anne exny's threat, I plains her frustrations this grew to realize way: "He's not working to quickly, was enhollow. make the best of the opportunitirely By Jeff D. ties he has been given, and Now, I can't Opdyke that what am I doing by saying, imagine there are too here's another thing that cost me money, when you clearly many little kids out there who are so bad that they deserve to don't value what you're given'?" have their holiday gifts taken But here's where Anne's away. But what about teens torn. Her son is a great kid, she and above? Is revoking holiday presents a justifiable punishment for their bad behavior? Love (Money. A Video Or should those presents be Love & Money is now in when it comes to punish, video. podcast format Get ment? information on how to subscribe ; In other words: Should your at WSJ.comloveandmoney, kids ever really find that pro; e where this week you can verbial coal in their stocking? ;; watch Jeff and Amy Opdyke ; V talk about how to instill the ; My interest in this subject :: spirit of giving in children. cropped up recently because of an email I received from a Minneapolis friend, Anne, who was says, and they have a wonderbeside herself with frustration. ful relationship. What's more, Her son a good student in she says, since the holidays are about love, "should I disassocihigh school recently failed out of college, where, Anne ate my feelings about his besays, he was living as though it havior toward school and just were Club Med. She wondered give him" the gifts he wants? if buying him the present he "Should 'gifts be a tool to reward and punish, just like a wants this year would be misread as a sign that she conpay cut or a bonus at work?" dones his actions. Age here is obviously the "Here are some things that complicating factor. If a little kid misbehaves, you take away go through my mind," she wrote, "as I consider birthday a sleepover, or the use of a toy, and Christmas gifts the two or a play date. For a child in ts , BARRON'S INSIGHT By Jack Willoughby End Its After Year-Lon- lagging for a year, of Union should get a boost from rising global migration that prompts the transfer of billions of dollars between countries. The World Bank estimates that about 200 million immigrants transfer some $289 billion across borders each year. A telegraph pioneer and one of the first 11 companies listed in the Dow Jones Industrial Average, Western Union (WU) has morphed into an to the world-w- ith 320,000 agents specializing in transfers within and between about ATM 200 countries, and in 90 currencies world-wid"People don't understand how global we are and what an international growth opportunity we have," says Scott Scheirman, Western Union's chief financial officer. Problems in the Past The company's stock, trading in the low $20s, has been in a funk throughout the year-h- urt, in part, by special . charges arising from the ASK DOW JONES By Tom Can you give me the name In government who can most influence the Q, of a person task of getting Congress to take action to protect people from being ensnared by the alternative minimum tax for 2007? S.F.P, Winston-Sale- N.C Don't look to any one per- son for the solution. Congressional leaders in both parties need to reach an agreement-so- on. A, Here's the problem: Based on current law, nearly 25 million people will be ensnared by the alternative minimum tax for 2007, up from only four million last year. That's because temporarily higher exemption levels from the alternative minimum tax, or AMT, expired at the end of 2006. scuba-divin- ON INVESTING (WU) stock price g 2006 spinoff of its division First Data. ' What's more, an Arizona state probe of Mexican immigrants involved seizures of Western Union transfers in numerous states. Worried about such disruptions, many Latino customers stopped using the service. As a result, the company's Mexican revenues dropped in the first half. The business bounced back by the third quarter, after the seizures were overturned by U.S. courts. Since then, Western Union has conducted an ad campaign, aimed at restoring trust in the security of its service. "The big problems are gone," says Timothy Call, portfolio manager at Capital Management, Richmond, Va., which oversees $330 million in assets, including 250,000 Western Union shares. "The value of these shares will become evident as Western Union consistently grows earnings at 20 annually in the anenvironticipated ment" for stocks overall. He sees shares rising above $26.60 in a year. Robert Loest, senior portfo- payment-processin- slow-growt- h Herman For months, lawmakers have talked about slapping a temporary "patch" on the law to prevent the AMT from spreading so rapidly. Despite recent action by the Senate and House, Congress has yet to complete work on the legislation. Internal Revenue Service officials are worried. They say they will need time to reprogram te their computers to reflect legislative changes for 2007. Thus, millions of people may face delays in getting their federal income-ta- x refunds early next year. It's not clear yet j I t t I I I t I. I I W '06 Source. WSJ Market Data lio manager Group mean for next year's filing sea- the situation clearly isn't good. The IRS Oversight Board is 'gravely concerned about the serious risks to the 2008 filing sea ten-ye- Buying Back Shares Western Union itself apparently thinks so, too. Last Tuesday, the company's board approved the repurchase of $1 billion of its shares. Combined with $300 million from an existing authorization, the Engle-wooColo., company can buy back $1.3 billion of its shares over the next few years. One caveat: Warren Buffett has sold the 10 million Western Union shares his Berkshire Hathaway received in the First Data spinoff. Says Mr. Loest: "Warren Buffett is a great investor, but he can be wrong." d, stories, see barrons.com son," says Paul Cherecwich, the "A delay threatens the IRS's ability to process returns and issue refunds in a timely manner and imposes significant burden on taxpayers. Moreover, the more time transpires before legislation is enacted, the more severe the risks become." Recently published tax guides, such as "J.K. Lasser's Your Income Tax 2008," include warnings about this problem. Even so, millions of people will need to be especially careful if there crunching numbers now in an effort to figure out how much of a refund they'll get next year, or how much they'll owe. tod's chairman. Stay tuned. what congressional delays will son-- but been a rough year for retail sector and this shopping season may not bring much cheer. Although holiday shopping began with a bang on Black Friday, the National Retail Federation still predicts that overall sales for November and December will rise just the slowest growth since 2002 and below the average of 4.8. On Thursday, retailers reported mixed November sales data. Their overall comparable-stor- e sales, or sales at stores open at least a year, were slightly above Wall Street expectations. But some companies, like Target (TGT), warned that business fell in the final week of the month. The Standard & Poor's retail index has fallen about 11 for the year as retailers have delivered bleak results amid the housing downturn, slowing economy and soaring fuel prices. will want to Investors closely watch shopping trends and other indicators that can help them pick companies most likely to weather the 4, at Integrity Growth and Income Fund, says the stock is worth $35. At its current price, he calls the stock a "temporary steal." His fund owns 70,000 Western Union shares. For more have hit Since navigating your first holiday season in the workplace can be tricky, here are a few helpful tips of what you should (and shouldn't) be doing: Do I have to attend the holiday office party? "We spend so much time, communicating on BlackBer-rie- s and email, the office party is a rare opportunity to really meet the people who work around you," says Alexandra Levit, a career consultant and author of "They Don't Teach Corporate in College." Instead of overindulging in food or spending too much time at the open bar with your friends, try to speak with top level executives you might not otherwise interact with and to make new contacts within the company. Before the party do some research on the executives likely to be there, check the company Web site and read the newspaper. With the information fresh in your mind, mingle with as many people as possible, says Susan RoAne, author of "How to Work a Room." "The small talk will lead to the big talk," she says. Avoid too much work talk but use this informal setting to ask others how they began working at the company and for advice for someone new to the field. "Take note of interesting people you meet at the party and then send them a handwritten holiday card or ask them to lunch," Ms. Levit says. Am I supposed to give my boss a gift? Lauren Vingiano, 23, a junior-levemployee at a risk consultancy firm in New York City, says it's difficult to buy a gift for a boss who "has everything." Al el though she made a contribution to her division's group gift, "I want to give something small and more personal to show how much I appreciate her mentor-ship,- " she says. Since managers typically make more money than their employees, traditionally only managers give gifts. But Marjo-ri- e Brody, president of Brody Professional Development, says that practice is changing, "especially for younger employees who see their boss as an adviser or teacher," she says. As every office has its own customs and culture, prepare and early by asking human resources employees about the company's policies and traditions. Ms. Brody cautions junior employees against giving anything too pricey, personal (such as perfume or lotion) or gifts with religious connotations. "Not everyone celebrates Christmas or Hanuk-kah,- " she says. Some thoughtful presents include a donation to a charity in your boss's name, a subscription to a favorite magazine or baked goods if you're on a tight budget. Regardless of the gift you give, "always be gracious when receiving a gift," Ms. Levit says. If your boss or gives you a gift, it isn't necessary to reciprocate, but in all cases send a handwritten thank you card to show your appreciation. Can I do my holiday shopping online during downtime at work? With fewer people in the of- fice and many clients on vacation, holiday time seems more lax than usual, but don't lose sight of the reason you are at work. Don't do your holiday shopping on company time no matter how quiet it is at the office because "your employer is still paying you to get your work done," Ms. Brody says. Email: shelly.banjo(3wsj.com ByAnjaliCordeiro It's 10 colder climate and a spattering of tinsel and X A. lights around the office are sure signs the holidays Z Retail Stocks: Shop Carefully $25- - Funk g Holidays at the Office A My take on this is colored by the fact that I actually have some experience here. I, too, failed out of college. I was working as a freelance photojournalist with a national news agency while attending Louisiana State University, and I spent far too much time traveling for my job. I got Ds and Fs in my classes ing eleccluding a tive. My dad was beside himself. But he gave me another chance to prove myself, and I did, and earning As and Bs the rest of the way. He didn't take anything away from me; he continued to pay my college costs, he continued to send Christmas and birthday gifts. the big stuff that matters. Ultimately, the message I ' At the same time, it's the got was this: People screw up. As parents, your job is to help older teens and even grown children who routinely do them on their way again, and things that send parents over you don't punish them by withthe edge be it failing out of holding acts of love and kindness. college for lack of effort, choosThat's particularly true during to marry against Mom and Dad's better judgment, or ing the holidays, or birthdays sneaking out the family car. or any moment when gifts are and totaling it. given. Because even if your kids mess up, giving is a show So is withholding presents of generosity and love, and an appropriate punishment for such poor behavior? that's a far more powerful mes"I can't imagine anything sage than withholding a my kids could do that would present as an expression of diswarrant not giving them someappointment and punishment. Anne says she knew what thing for the holidays," says a she was going to do the molongtime friend of mine who has a young child, as well as ment she read my email asking two kids recently out of colwhat it takes for a kid to find a lump of coal in a Christmas lege. "The whole idea of Christmas is about giving, and the stocking. "A lump of coal never," lesson you're teaching your kids by taking away presents she says. "When it comes to seems to violate the spirit of giving whether time, money Christmas. That seems counteror stuff it's better to have alproductive." ways been generous and be called a chump, than withhold Still, he concedes, "it's easy for me to take the high road. and always wonder if you should have, instead, given." My kids have never come close to doing anything that would Jeff Opdyke covers personal fiwarrant such a punishment. nance for The Wall Street JourI'd feel less Maybe generous nal. Email: lovemoneywsj.com and more torn if they had." Western Union Western Union Stock Is Poised To his teens and above, though, you don't have small stuff to use as le verage. It's only By Shelly Banjo Send your questions to us at askdowjones.sunday03wsj.com and include your name, address and telephone number. Questions may be edited; we regret that we cannot answer every letter. pressures. Follow the Money . Luxury companies may fare better than the rest as their wealthier clients are better able to withstand an economic slowdown. Britt Beemer, chairman of America's Research Group, expects luxury retail sales to be up 4 this year on a comparable store basis in November and December, lower than the 6 to 8 increase in each of the last three years, but better than the 2 he expects for general retail this year. "I think the best performers will be those aimed at the upper middle. Nordstrom (JWN) and Saks (SKS) would be companies I would like to own," says Tom Sternberg, former chief executive of Staples and managing general partner at Highland Capital Partners. Nicolaus Stifel analyst David Schick has a "buy" recommendation on handbag maker Coach (COH) and jeweler Tiffany (TIF). Low- - and middle-Incom- e consumers are expected to be the worst hit, forcing them to buy less or look for the cheapest options. That trend may help some discount stores. Game "Either you have to play the high end or the low end," of retail stocks, says Patricia Edwards, managing director and a retail analyst with Went-wortHigh-Lo- w h, Hauser &. Violich. Her firm holds shares of Wal-MaStores (WMT) because she believes that they will do well as consumers trade down. Shares of Costco Wholesale (COST), which are up about 37 for the year, are slightly expensive at the moment, but she still likes the stock because the company has been able to keep sales steady even as consumers have pulled back. Consumer electronics are expected to be some of the hottest items this holiday season, helping companies that sell products like digital cameras, GPS devices and personal computers. Still, Mr. Sternberg, of Highland Capital, says he would rather be an investor in the nation's largest consumer electronics retailer Best Buy (BBY), than in its rival Circuit City Stores (CC). Companies like Best Buy that have a leadership position in their sectors are better able to weather downturns because they can invest more to attract consumers, he says. Best Buy is rt It's It's 7 for the year, while Circuit City is down 59. Goldman Sachs analysts say their retail checks over the Black Friday weekend suggest that products by iPod maker Apple (AAPL), personal computer company Hewlett-Packar- d com(HPQ), and hard-driv- e up about pany Seagate Technology (STX) did well. Investors may also want to keep an eye on other technology companies that may benefit from holiday sales. Canac-cor- d Adams' raised its rating on portable navigation device company Garrnin (GRMN) to "buy" from "hold" on evidence of strong Black Friday sales. Tough on Toys There are some consumer stocks that analysts are particularly cautious about. The outlook is bleak for the large toy manufacturers. Analysts say tepid consumer spending and the recent toy recalls on safety concerns could weigh on these companies. RC2 (RCRC) is one of the few toy stocks that BMO Capital Markets toy analyst Gerrick Johnson is recommending. The Oak Brook, Di, toy company may not k escape the broad consumer this holiday season, but is likely to do well longer term because it has a strong focus on the infant-car- e market, he says. pull-bac- Time to Battle the Darts time for a new Dartboard game, so those stock picks ready. In Contest No. 30, as in the past, six readers' picks will vie with a portfolio picked by Sunday Journal staffers tossing darts at the stock listings from the newspaper. The last day to enter will be Sunday, Dec. 23. The winner among the six readers for the six months January through June 2008 earns lifetime bragging rights and a Sunday Journal tote bag. Reader and dart choices will Jan. be announced Sunday, 13. The rules: Choose just one stock from the NYSE or Nasdaq markets and send your choice to the sundaydartboardwsj.com email address. No entries by regular mail. You must include your name, address, daytime phone number, email address and the name of the local newspaper where you read Sunday Journal Brokers and other investment professionals cant compete. Neither can people previously chosen as contestants. You must be willing to be |