The S&P was up 1% for the week to close at an all-time high. New home sales rose 6.4% in April with stock of houses on the market hitting a 3 1/2 year high.

I bought AT&T (T-$35.31) today $35.30 as a CD alternative after the stock had declined from 36.75 on the announcement of the company's proposed acquisition of DirecTV. I have a 12-month total return target of 10% (5% dividend + 5% appreciation). On the downside, I feel that T would decline only about 25% as much as the general market. So if we were to have a 20% market decline, I would anticipate taking a 5% hit to reinvest in a more interesting situation. I added to my Travel Centers of America (TA - $8.36) at $7.67 on a technical breakout and on the news that Shell and TA are teaming up to build CNG (Compressed Natural Gas) fueling lanes at up to 100 of TA's 250 locations. TA has a book value of $12.38 but has been depressed recently because of a delay in their financial filings. Analysts expect the company to earn $1.00 in 2014. My average cost in TA is $8.38. I sold some of my Federated National (FNHC - $23.95) this week at $24+ and expect to sell more that I will be long term on by next week. I am worried that Florida casualty rates will begin to fall, and that we cannot expect another no-hurricane season like last year. Two insiders, including the CFO, sold this week. I began buying FNHC at $5+. My railcar stocks were hot for the week as my American Railcar rose 7% and Greenbrier and Trinity made new highs.My Staples (SPLS - $11.65) declined 13% on a poor earnings report. Seeking Alpha had these comments: Staples reported Q1 EPS of $0.18, missing expectations by $0.03. Comparable-store sales and traffic were down 4% year over year, while revenue was down 2%. Guidance for Q2 was $0.09-$0.15 vs. expectations of $0.15. However, the forward guidance of earnings adds a new low of $0.09 next quarter is worrisome, and likely why the stock dropped 12.5% today. It appears that one of the reasons for the lower guidance is due to restructuring costs. The 4.1% yield at today's closing price in SPLS is attractive and well-supported by cash flow even with a modest decrease in earnings. The company has a contract with the State of Tennessee to supply office supplies and is attempting to close a contract with Metro Nashville.

• Midterm Election Years - When the S&P 500 has been positive by May 13, as it has this year, it's gained 8.4% on average for the remainder of the year, and outperformed during the 4Q – Bespoke Investment Group



• But don't rule out a correction - There's been a market swoon, averaging 19%, in every midterm election year since 1962. Fortunately, in the 12 months that follow, an average gain of 32%, rewarding investors who don't panic – The Kiplinger Letter



• Headline - Condi Rice, Christine Lagarde and two other speakers decline commencement invites….In February, students at Dartmouth issued a list of 72 demands for "transformative justice." Among them: "mandate sensitivity training", "organize continuous external reviews of the College's structural racism, classism, ableism, sexism and heterosexism, and "create a policy banning the Indian mascot." When the demands weren't automatically met, the students seized an administration building



• Headline - To the commencement class of 2014 at Haverford from former Princeton President William Bowen, "I'll grant you this: It's not all your fault. The semi-and post-literates who overran the humanities departments at most universities long before I ever set foot in college are the main culprits here…Then again, it shouldn't be that hard to figure out what it takes to live in a free country. The ideological brainwashing that takes place on campus isn't (yet) coercive. Mainly, it's just onanistic. There's good news in that you can still take charge of your education, and of your lives. The cocoon years are over; the micro-aggressions are about to pour down. Deal with it…Revel in it. No consequential idea ever failed to offend someone; no consequential person was ever spared great offense. Those of you who want to lead meaningful lives need to begin unlearning most of what you've been taught, starting right now" – Wall Street Journal



• Berkshire Hathaway annual meeting - was attended by 40,000 this year vs. only 12 people in 1981. Around 1987, Nashville Attorney Jack May purchased a share from me for around $4,000 to get the annual report. Today the stock sells for $190,500 a share, a 47x return on his investment – Buzz



• Gun Deaths - In 2012, the U.S. had 8.8 deaths per 100,000 people vs. United Kingdom with 0.25 and Japan with 0.06. The U.S. has 88.8 guns per 100 people vs. 6.2 in the UK and 0.6 in Japan – ABC News….60% of gun deaths are suicides, 3% accidental and 34% make up the remainder of gun deaths – www.about.com



• More on Gun Deaths - Participating in a gun buy-back program because you think criminals have too many guns is like having yourself castrated because you think your neighbors have too many kids – Anon



• Synthetic Diamonds - The new cultured stones are actually better than many mined diamonds. The Gemological Institute classifies them as colorless or near colorless stones, a premium category that includes only 2% of diamonds. Their hardness is 0.9 of diamonds. The Smithsonian magazine reports, "There's no way to tell they are lab created." – New York Times



• Diamonds - One could have purchased a $10,000 engagement ring from Tiffany's in 1987 or bought their stock, which would now be worth approximately $520,000 – Jay Kumar



• Life Expectancy - Japanese women are the longest livers with a life expectancy of 87 years vs. 81 for U.S. women. Iceland men live to be 81.2 years vs. 76 for American men. A boy born in a rich country can expect to live to 76 vs. 16 years less for a boy born in a poor country. For girls the gap is 19 years, 82 vs. 63 – World Health Organization



• Student Debt - In 2011, home ownership of those holding student debt vs. those without showed little difference. A recent softness has occurred in the first owner/student debt holder category. College educated homeowners under the age of 40 with student debt, have a median net worth of $8,700, while the same demographic without student debt have a median net worth 7.4x higher or $64,700, according to Pew Research – The Christian Science Monitor



• Student loans average $35,000 - Assuming 5% interest rate, it would take 10 years of monthly payments of $371.23 to retire the debt – Markit

Global Online CEO Conference Archive Now Available on Our Newly Redesigned Website

In April we had 30+ small-cap executives participate in our latest online conference where they shared detailed overviews of their businesses. The complete archive of the conference is now available on our newly designed website at www.RedChip.com, including the informative question and answer sessions.

Whether you want to re-watch a particular presentation, or catch one you may have missed, be sure to visit today.