Iraq, oil price fears spook market

NEW YORK (CNNMoney)

The Dow Jones Industrial Average is slightly lower in early trading. Many hope this could be the week the Dow cross the 17,000 mark for the first time, but it's not looking promising today. It's largely a psychological barrier, but it illustrates that the index has continued unabated the bull run that saw it close above 16,000 for the first time just six months ago.

The S&P 500 and the Nasdaq are flat.

Related: What does Dow 17,000 mean, anyway?

Here are the top things to watch in today's trading:

1. Oil prices: As fighting in Iraq intensifies and Israel continues launching rockets into Syria in retaliation for the killing of an Israel teen, keep an eye on oil prices. WTI crude oil is creeping closer and closer to the $107 barrier. It's been near that mark for a few days, but any increase in oil that could affect gas prices won't be welcome news amid America's peak driving season.

2. Turmoil in the fashion industry -- Lululemon & American Apparel: Lululemon shares are bouncing this morning after the Wall Street Journal reported that the company's founder Chip Wilson hired Goldman Sachs to help him strengthen his role at the company, where he is the largest shareholder. Lululemon (LULU) shares are up 3.8%

American Apparel (APP) shares have opened 3.6% higher. Former CEO Dov Charney wrote a letter to the board challenging his dismissal, which the board contends was legal. The company continues to struggle to turn around its brand. The stock is trading for less than $1.

3. Big deal for Micros: The computer giant has reportedly purchased MICROS Systems (MCRS), one of its largest customers, for more than $5 billion. Micros specializes in providing software applications to the hospitality and retail sectors, and has worked with Oracle for more than 15 years. Oracle shares are flat, and Micros stock is up 3%.

4. Ou la la -- GE finally snags French prize: General Electric (GE) has finally closed the deal on French company Alstrom (ALSMY) to the tune of $17 billion. The French government had opposed the deal because it was concerned the merger would lead to job losses. GE stock is down slightly, as are Alstom's French shares.

5. BNP Paribas on verge of settlement with U.S.: The bank is on the cusp of a $9 billion settlement with the U.S. Justice Department on allegations that it did business with off-limits countries. The French bank's shares are flat at the moment.

Related: The fine could hurt BNP's credit rating

6. Data Dump: Data comes out at 10 a.m. showing the pace of May existing home sales, and the market is expecting an annual rate of 4.73 million. Keep an eye of homebuilder stocks like Toll Brothers (TOL), PulteGroup (PHM) and Lennar (LEN).

Earlier in the day, the Federal Reserve Bank of Chicago put out an index of economic activity showing that May was a good month for growth.

7. International Markets: European stocks are largely down, with the FTSE 100 down slightly in afternoon trading. Asian markets are also a mixed bag, as are Chinese stocks are doing well after the country's manufacturing showed its first expansion in six months. The Hang Seng fell 1.7%, but shares traded in Shenzen were up nearly 1.1%.

First Published: June 23, 2014: 10:08 AM ET

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Aereo's Supreme Court destiny

NEW YORK (CNNMoney)

That's obvious now, two years after the streaming TV service came online in New York City and incurred the collective wrath of all the country's major broadcasters. The court's ruling in the copyright infringement case could come as soon as Monday; a victory for Aereo could have profound effects on the television business.

At first, I didn't see what the big deal was. I was ambivalent, and briefly even downright dismissive, when a public relations person contacted me in February 2012 and offered an embargoed look at the startup. I worked at The New York Times at the time, and she wanted me to write the very first story about Aereo's launch. "Time is of the essence," she said, because a media briefing was scheduled for Valentine's Day.

I hesitated, but she insisted that I come to the headquarters of Barry Diller's IAC (IACI) for an in-person demonstration of the product, which she called an "online TV platform." Once I was there, I understood. "Surprisingly high-quality signal," I scribbled in my notebook. "Place- and time-shifting!"

Aereo empowered users to both place-shift broadcast TV (by making it portable via a smart phone) and time-shift it (by including an Internet digital video recorder). The service scoops up public signals of local TV stations and retransmits them to paying subscribers via the Internet. The broadcasters say this amounts to copyright theft on a grand scale; Aereo's backers say it is perfectly legal.

Related: What the heck is Aereo, anyway?

Looking back at my notes from February 2012, the contours of the eventual legal case are evident. "It's an antenna per person," Aereo founder and CEO Chet Kanojia told me. "It's a private exhibition of that content." (The broadcasters say it is a public exhibition, which is a violation of copyright law.)

When we first spoke, Kanojia had already been working on Aereo in stealth for well over a year. Diller, his biggest financial backer, had gotten involved in the summer of 2011.

In an interview for my story, I asked Diller about the potential for legal action against the service. He wouldn't comment directly. But he told me that "when I first heard about this, I thought, 'There must be something wrong here. This can't be.' And I kept scratching at it, as did our lawyers — every lawyer we could find. And I could not find a flaw."

Diller said he didn't expect Aereo to "break the neck of cable-satellite," but that it would present an alternative to a hefty monthly cable bill by providing a small bundle of broadcast TV. That helped to sell my editors on the story.

What intrigued me most about Aereo was the statement it made to broadcasters and cable companies. It was as if Kanojia was saying, "This is the way TV should be -- streamed to any device, anytime, live or on-demand, inside or outside the home, no set-top-box or rabbit ears needed."

Legal action seemed inevitable. During Kanojia's demo, I raised the specter of lawsuits. "We understand that when you try to take something meaningful on, you have to be prepared for challenges," Kanojia said, somewhat sidestepping the question.

Notably, he did say that the company had "talked to everybody, shown them what we're doing" -- he meant local station owners -- and "invited discussion, invited criticism."

When I contacted those local stations and asked them to comment on launch day, they were mum. But they were paying close attention -- they filed two lawsuits against Aereo on the first day of March 2012, two weeks before the service even became available to the public in New York City.

"A plaintiffs' win in this case will ensure the continued availability of this programming to the viewing public," the broadcasters' main Washington lobbying group said when the suits were filed. (Was the group foreshadowing what CBS (CBS), Fox (FOXA) and Univision warned in 2013 -- that their stations might leave the public airwaves if Aereo wins?)

Some observers immediately predicted that the case would make its way to the Supreme Court. At the South by Southwest conference in mid-March 2012, Diller called the suits "absolutely predictable," a case of protectionist behavior by the broadcasters.

"It's going to be a great fight," he said.

And it has been, culminating in a hearing this April at the Supreme Court. Afterward, the normally affable Kanojia declined to say much to the reporters waiting for him on the courthouse steps.

"It's over," he said, as he and his family walked to a waiting car.

Is it? The justices of the Supreme Court will tell us very soon.

First Published: June 23, 2014: 8:06 AM ET

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Oil prices spark economic growth concerns

LONDON (CNNMoney)

Crude oil prices in London and New York touched levels not seen since last September after militants from the Islamic State in Iraq and Syria (ISIS) seized city after city over the weekend as they continued their march towards Baghdad.

Costlier energy could spell trouble for European economies still struggling to regain momentum after the region's debt crisis.

Growth in the eurozone has slowed to its weakest pace in six months, according to a June survey of purchasing managers released Monday. Companies across manufacturing and services reported higher input prices.

"Both sectors reported higher oil prices as a key cause of rising costs," survey compiler Markit noted.

Related: Latest on Iraq crisis

Rising energy costs may ease fears of deflation, which prompted the European Central Bank to unveil an unprecedented range of stimulus measures earlier this month.

But they add to worries about growth in countries such as France, where business activity contracted for a second month running in June.

"Most important is the rise of energy prices," said Dominique Barbet at BNP Paribas, commenting on the weak French data. "This will not only add to the production cost of industry, but also put pressure on households' purchasing power."

Related: Gas prices rising but glut coming

The rapid advance of ISIS across northern and western Iraq this month has had little effect so far on exports of crude oil from OPEC's second biggest producer.

But prices have risen above $107 a barrel on the Nymex on fear that supplies could be hit later this year, just as world demand peaks. Prices are up 16% so far this year.

Even if ISIS is prevented from pushing into southern Iraq, which produces the vast majority of the country's 2.5 million barrels per day of exports, energy experts say output could fall back as foreign oil companies withdraw staff due to security concerns.

World growth forecasts have already been cut for 2014, in part due to the deep winter freeze which caused the U.S. economy to shrink in the first quarter.

Further sustained gains in oil prices could make for a weaker rebound in the second half. And it's not just major Western economies that would feel the pinch.

China is expected to surpass the U.S. as the world's biggest importer of oil this year. India, Asia's third biggest economy, is also highly sensitive to rising energy prices.

Operating conditions in China's vast manufacturing industry improved for the first time in six months in June, according to HSBC's preliminary survey of purchasing managers.

But that's likely due to a recent mini-stimulus package, which may do little more than sustain growth at 7.4%, the rate seen in the first quarter. The government has targeted growth of 7.5% this year.

First Published: June 23, 2014: 7:08 AM ET

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Oil prices spark economic growth concerns

LONDON (CNNMoney)

Crude oil prices in London and New York touched levels not seen since last September after militants from the Islamic State in Iraq and Syria (ISIS) seized city after city over the weekend as they continued their march towards Baghdad.

Costlier energy could spell trouble for European economies still struggling to regain momentum after the region's debt crisis.

Growth in the eurozone has slowed to its weakest pace in six months, according to a June survey of purchasing managers released Monday. Companies across manufacturing and services reported higher input prices.

"Both sectors reported higher oil prices as a key cause of rising costs," survey compiler Markit noted.

Related: Latest on Iraq crisis

Rising energy costs may ease fears of deflation, which prompted the European Central Bank to unveil an unprecedented range of stimulus measures earlier this month.

But they add to worries about growth in countries such as France, where business activity contracted for a second month running in June.

"Most important is the rise of energy prices," said Dominique Barbet at BNP Paribas, commenting on the weak French data. "This will not only add to the production cost of industry, but also put pressure on households' purchasing power."

Related: Gas prices rising but glut coming

The rapid advance of ISIS across northern and western Iraq this month has had little effect so far on exports of crude oil from OPEC's second biggest producer.

But prices have risen above $107 a barrel on the Nymex on fear that supplies could be hit later this year, just as world demand peaks. Prices are up 16% so far this year.

Even if ISIS is prevented from pushing into southern Iraq, which produces the vast majority of the country's 2.5 million barrels per day of exports, energy experts say output could fall back as foreign oil companies withdraw staff due to security concerns.

World growth forecasts have already been cut for 2014, in part due to the deep winter freeze which caused the U.S. economy to shrink in the first quarter.

Further sustained gains in oil prices could make for a weaker rebound in the second half. And it's not just major Western economies that would feel the pinch.

China is expected to surpass the U.S. as the world's biggest importer of oil this year. India, Asia's third biggest economy, is also highly sensitive to rising energy prices.

Operating conditions in China's vast manufacturing industry improved for the first time in six months in June, according to HSBC's preliminary survey of purchasing managers.

But that's likely due to a recent mini-stimulus package, which may do little more than sustain growth at 7.4%, the rate seen in the first quarter. The government has targeted growth of 7.5% this year.

First Published: June 23, 2014: 7:08 AM ET

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Should you drain your 401(k) to start a business?

Eric Schneider emptied his 401(k) to start a specialty coffee and tea shop with his wife Nancy in 2012. Two years later, the business is set to log a profit.

NEW YORK (CNNMoney)

Eric Schneider followed it diligently during his 25 years selling commercial insurance. But two years ago, he emptied his nest egg to launch Headrush Roasters Coffee & Tea in Kansas City, Mo.

"I took a big risk, but I don't regret it at all," said Schneider, 49, who co-owns the business with his wife Nancy.

Schneider left his six-figure job in 2010 with $250,000 in his 401(k) and $100,000 in savings. In 2011, he found a vacant building that he thought would be perfect for his coffee shop and roastery. He hoped to lease it, but the owner only wanted to sell.

"I'm a big believer in no debt," he said. "I had paid off my house, my cars. I didn't want to take out a loan to buy the building."

Related: Google unveils marketing platform for business owners

As he researched financing options, he came across ROBS, or Rollovers as Business Startups. These allow people to use the money in their 401(k) to start a business (or buy an existing one) without paying taxes on the withdrawn funds or getting hit with an early withdrawal penalty.

The process can be pretty complicated, however. First, you must incorporate a business and open a new 401(k) plan under it. Then you roll your existing 401(k) funds into the new plan. Since both accounts are tax-exempt, you avoid taking the tax hit.

As owner of the new company, you can now direct what the 401(k) invests in. With ROBS, the new company typically issues shares that you can purchase using money from the 401(k). You're then free to use the cash from that purchase for operational expenses (although owners must pay their own salaries out of revenue, not from the 401(k) funds).

While the IRS does not consider ROBS an "abusive tax-avoidance transaction," the agency calls the arrangement "questionable" and has strict compliance standards to avoid penalties (and audits).

Related: I opened 40 businesses in 35 years

Because the process was so involved, Schneider signed up with Bellevue, Wash.-based Guidant Financial, which is among a handful of financing firms that help entrepreneurs set up ROBS.

Guidant began offering ROBS in 2004, and it has become the firm's signature product.

Cofounder David Nilssen said his firm has had 9,000 entrepreneurs take advantage of the financing option, and 80% of them are still in business after four years.

But the firm's services don't come cheap. Guidant charges clients $4,995 initially and $119 a month for advisory services after that. (While that's not required, the complexity of the arrangement means most entrepreneurs keep the accounts with Guidant to ensures regular compliance.)

"This option isn't for everyone," said Nilssen. "There's a niche market for it, and individuals who've accumulated enough assets in life are more open to it."

He said their ROBS clients are typically between 40 and 60 years old, own their own homes and have advanced degrees with a combined household income of over $75,000.

"60% of them are first-time entrepreneurs who are choosing a second career," he said.

Still, Stuart Ritter, senior financial planner and vice president with T. Rowe Price, said ROBS can be risky.

"With ROBS, you're putting 100% of your retirement saving into a single security," he said. "People really have to think about this."

Related: The best nations for women entrepreneurs

It can also be difficult for entrepreneurs to rebuild their nest egg.

Chrissy and Mike Mayhew opened Beach House Miracles, a renovation firm, in Ocean View, Del., in 2008. They didn't have capital so they funded the startup using $100,000 from their 401(k).

Today, they have five employees and logged $1 million in revenue last year. But even though the business has been successful, they have yet to start contributing to their retirement plan.

Still, they're comfortable with their decision. "The gamble paid off for us," Chrissy said.

Do you have what it takes to be rich?

Meanwhile, Schneider was able to buy the building with the $250,000 from his 401(k). He spent his $100,000 in savings on remodeling and equipment and opened Headrush in 2012.

If he ever sells the business, he'll put the money back into the 401(k) plan. If the business fails, he won't have to pay a penalty but he also won't have his retirement cushion.

So far, things are going well.

After two years in business, the company is set to log a profit this year. It has seven employees and is looking to open more locations.

"It's been a win-win for me, the government and the economy," Schneider said. "I've created a business, the government is collecting taxes on my business and I'm hiring people."

First Published: June 23, 2014: 6:08 AM ET

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Aereo's Supreme Court destiny

Online TV startup Aereo will soon hear its fate from the Supreme Court. Brian Stelter has covered Aereo from the beginning.

NEW YORK (CNNMoney)

That's obvious now, two years after the streaming TV service came online in New York City and incurred the collective wrath of all the country's major broadcasters. The court's ruling in the copyright infringement case could come as soon as Monday; a victory for Aereo could have profound effects on the television business.

At first, I didn't see what the big deal was. I was ambivalent, and briefly even downright dismissive, when a public relations person contacted me in February 2012 and offered an embargoed look at the startup. I worked at The New York Times at the time, and she wanted me to write the very first story about Aereo's launch. "Time is of the essence," she said, because a media briefing was scheduled for Valentine's Day.

I hesitated, but she insisted that I come to the headquarters of Barry Diller's IAC (IACI) for an in-person demonstration of the product, which she called an "online TV platform." Once I was there, I understood. "Surprisingly high-quality signal," I scribbled in my notebook. "Place- and time-shifting!"

Aereo empowered users to both place-shift broadcast TV (by making it portable via a smart phone) and time-shift it (by including an Internet digital video recorder). The service scoops up public signals of local TV stations and retransmits them to paying subscribers via the Internet. The broadcasters say this amounts to copyright theft on a grand scale; Aereo's backers say it is perfectly legal.

Related: What the heck is Aereo, anyway?

Looking back at my notes from February 2012, the contours of the eventual legal case are evident. "It's an antenna per person," Aereo founder and CEO Chet Kanojia told me. "It's a private exhibition of that content." (The broadcasters say it is a public exhibition, which is a violation of copyright law.)

When we first spoke, Kanojia had already been working on Aereo in stealth for well over a year. Diller, his biggest financial backer, had gotten involved in the summer of 2011.

In an interview for my story, I asked Diller about the potential for legal action against the service. He wouldn't comment directly. But he told me that "when I first heard about this, I thought, 'There must be something wrong here. This can't be.' And I kept scratching at it, as did our lawyers — every lawyer we could find. And I could not find a flaw."

Diller said he didn't expect Aereo to "break the neck of cable-satellite," but that it would present an alternative to a hefty monthly cable bill by providing a small bundle of broadcast TV. That helped to sell my editors on the story.

What intrigued me most about Aereo was the statement it made to broadcasters and cable companies. It was as if Kanojia was saying, "This is the way TV should be -- streamed to any device, anytime, live or on-demand, inside or outside the home, no set-top-box or rabbit ears needed."

Legal action seemed inevitable. During Kanojia's demo, I raised the specter of lawsuits. "We understand that when you try to take something meaningful on, you have to be prepared for challenges," Kanojia said, somewhat sidestepping the question.

Notably, he did say that the company had "talked to everybody, shown them what we're doing" -- he meant local station owners -- and "invited discussion, invited criticism."

When I contacted those local stations and asked them to comment on launch day, they were mum. But they were paying close attention -- they filed two lawsuits against Aereo on the first day of March 2012, two weeks before the service even became available to the public in New York City.

"A plaintiffs' win in this case will ensure the continued availability of this programming to the viewing public," the broadcasters' main Washington lobbying group said when the suits were filed. (Was the group foreshadowing what CBS (CBS), Fox (FOXA) and Univision warned in 2013 -- that their stations might leave the public airwaves if Aereo wins?)

Some observers immediately predicted that the case would make its way to the Supreme Court. At the South by Southwest conference in mid-March 2012, Diller called the suits "absolutely predictable," a case of protectionist behavior by the broadcasters.

"It's going to be a great fight," he said.

And it has been, culminating in a hearing this April at the Supreme Court. Afterward, the normally affable Kanojia declined to say much to the reporters waiting for him on the courthouse steps.

"It's over," he said, as he and his family walked to a waiting car.

Is it? The justices of the Supreme Court will tell us very soon.

First Published: June 23, 2014: 8:06 AM ET

19.33 | 0 komentar | Read More

Will the Dow crack 17,000 this week?

Click for more market data.

NEW YORK (CNNMoney)

The Dow Jones industrial average is about 50 points away from crossing 17,000 for the first time ever. The blue-chip average closed at a record high Friday, as did the broader S&P 500 index.

The Dow index of 30 of the biggest and best known U.S. brands has been breaking through these "psychologically important" milestones with remarkable speed. It's considered a good gauge of the health of corporate America.

If the Dow crosses 17,000 this week, it will be less than six months after it first crossed 16,000. It rose above 15,000 for the first time just over a year ago.

In 2007, the Dow went from 13,000 to 14,000 in about four months.

But it wasn't always this way. It took about seven years for the Dow to plow through 12,000.

When the Dow rose to 10,000 for the first time in 1999, floor traders broke out commemorative baseball caps to mark the occasion.

Most analysts say the round numbers are not technically important, but they are a good indication of the current mood among investors.

Stocks have been in a bull market for more than five years, and the bulls don't seem ready to throw in the towel any time soon.

CNNMoney's Fear & Greed index is at a level indicating that investors are feeling extremely greedy. The index stood at 95 out of 100 on Friday.

With greed driving the market, fear seems to have vanished.

Related: Where's all the fear in the stock market

The market's so-called "fear gauge," the VIX (VIX), is at the lowest levels since 2007. Some are starting to say that investors are complacent.

Stocks jumped Wednesday after Federal Reserve chief Janet Yellen reiterated that the central bank is unlikely to hike interest rates in the near future.

The Fed's policies, along with a gradually improving economic backdrop, have powered the bull market thus far. Investors seem confident that this fortuitous combination will remain in place for a while longer.

But there are some mixed signals below the surface.

The top performing Dow stock this year is Caterpillar (CAT), which is up 20% since January.

That suggests investors are optimistic about the global economy, since the heavy equipment maker sells products used to construct buildings and infrastructure around the world.

Related: Rich investors worry about stock market

But banks and consumer-oriented companies are among the worst performers on the Dow this year.

Visa (V) is down nearly 6% since January, making it the worst performer in the index. Goldman Sachs (GS) and JPMorgan (JPM) are also down year-to-date.

Bank stocks have had a strong run over the past few years, so it's not surprising to see them underperform. But a healthy banking sector is usually considered a prerequisite for a robust economic recovery.

Wal-Mart (WMT)and Nike (NKE) are also bringing up the rear on the Dow. That suggests investors don't have much confidence in the outlook for consumer spending.

First Published: June 22, 2014: 9:04 AM ET

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From cancer survivor to millionaire

NEW YORK (CNNMoney)

The science teacher and textbook author was fighting off a rare and terminal form of cancer as he watched the Great Recession swallow up 40% of his investment portfolio. Friends in finance warned him to dump his stocks because they feared the Dow would soon plummet from its already depressed 8,000 level to 1,000.

Despite those daunting challenges and ominous warnings, Eimer poured cash into the stock market at the depths of the crisis, a decision that has left him and his wife Gayle on track to become millionaires.

"I didn't jump ship. It was scary buying back into the market at that time," said Eimer, who lives in Horsham, Pa., a suburb of Philadelphia.

Eimer, who in 2005 had been given just two years to live, said he stuck to his belief that you've got to be in the market to make money.

Besides, he said, "If the Dow goes down to 1,000, then all of us have a lot more problems than losses in stocks. You're talking about the collapse of our economy."

Related: How a 77-year-old trader is cashing in on growth stocks

'Prepared for the worst' Eimer's courageous investing during the financial crisis was made possible by his family's frugal, debt-free lifestyle.

Unlike most Americans, he didn't lever up during the mid-2000s on luxury cars, over-the-top houses or second mortgages.

Instead, Eimer and his wife saved half of his salary and invested heavily in their retirement and college savings funds. They paid off a mortgage on their two-bedroom condo in 2003 and bought a new Toyota Corolla for just $15,000. Later they "splurged" on a Honda Element for $18,000.

"Frugality was grounded into me from a young age," said Eimer, whose grandfather lost everything in the Great Depression. "If we had not prepared for the worst, we would be faced with financial disaster."

Eimer said he converted his wife from a "spendthrift" when they first met to a frugal manager of the household budget. "Without her, we wouldn't have been able to do any of it," he said, noting the family gets by on just a single prepaid cell phone.

Related: U.S. recovery hits 5-year mark, but has long way to go

Beating the odds: Disaster struck in 2005 when Eimer was diagnosed with an extremely rare and terminal form of thyroid cancer. That forced him to give up his lucrative side career making up to $200 an hour writing textbooks for McGraw-Hill, Prentice Hall and other publishers.

There was one doctor on the whole planet who was researching this form of cancer, Eimer said, and she developed an experimental chemotherapy drug that helped save his life.

While the drugs extended his life considerably, he still deals with chronic pain, fatigue, abdominal pain and loss of his hair, which has since returned. But Eimer has been able to continue teaching middle school science at Phil-Mont Christian Academy in Springfield, Pa.

Almost a decade after receiving his grim diagnosis, Eimer has beaten the odds and is currently in stable condition. He's also beaten most retail investors by actually participating in the bull market that has left many everyday Americans behind.

"I went through the dotcom bubble, but this seemed worse," Eimer said about the 2008 crash after Lehman Brothers collapsed in September of that year. He said friends who were financial advisors told him to "ditch all stocks and buy silver."

Related: Why hasn't Main Street recovered like Wall Street?

Buying at the bottom: But Eimer did the exact opposite of those dark warnings: He scooped up beaten down stocks and bonds at what turned out to be historically-low prices.

Eimer said he felt confident enough to do this because he had no debt and a ton of fresh powder: 25% of his portfolio had been in cash when the market cratered. At that point, he had bigger problems as he braced for cancer to take his life.

Related: I sold my startup to Cisco. Here's why

Rather than risk trying to find individual stock winners, Eimer continued a strategy that he's implemented since the 1990s: Buy a diversified variety of index and mutual funds.

Bad luck while investing in individual stocks led Eimer to conclude: "It was only my broker who was getting wealthy."

One mutual fund that's been particularly kind to him is the Vanguard PRIMECAP Fund (VPMAX), which invests mostly in technology and biotech stocks like Google (GOOGL, Tech30) and Amgen (AMGN). The fund has soared 133% since the start of 2009, besting the S&P 500's 123% gain.

"Today, our portfolio is up about 2-1/2 fold from the recession lows. We have zero debt, we're on target to become millionaires in about three years and I'm still alive," Eimer said. "We count ourselves blessed!"

First Published: June 21, 2014: 7:43 AM ET

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American Apparel's ousted CEO fights back

NEW YORK (CNNMoney)

In a letter to the company's board, Glaser, who heads Glaser-Weil's litigation department, claims American Apparel "violated its legal and contractual obligations to Mr. Charney in numerous respects" that have resulted in "substantial professional, reputational and financial injuries to Mr. Charney."

Charney, who founded American Apparel (APP) in 1998, was ousted by the board last week.

According to sources familiar with the situation, Charney was given two options: either step aside quietly and take a creative role that would pay around $1 million a year, or face being fired with cause.

"By presenting Mr. Charney with this absurd and unreasonable demand, the Company acted in a manner that was not merely unconscionable but illegal," Glaser claims in her letter to the board.

Last week, American Apparel board member Allan Mayer told CNNMoney that the board had learned earlier this year of "disturbing" information that suggested "misconduct" by Charney.

Related: 'Disturbing misconduct' at American Apparel

Charney was notorious for controversial behavior, including a series of sexual harassment suits filed by employees in recent years.

Mayer said the board was aware of these reports, but said this time it had "concrete facts," which led to an internal investigation.

A person with knowledge of the internal investigation said it was related to Charney's response to allegations of sexual harassment.

Mayer told CNNMoney last week that the company was prepared for a fight. "[Charney] certainly indicated that he was not going to accept it," he said.

Both Mayer and Charney declined to comment for this story.

Glaser was also unavailable for immediate comment.

Related: American Apparel ousts founder, CEO

American Apparel has been struggling for years. Company shares, which topped $15 as recently as 2007, now trade for less than $1.

Mayer thinks the firing will ultimately be a plus for the struggling retailer.

"There are people who will tell you that Dov's reputation was a real drag on the company. There were people and firms unwilling to do business because Dov ran the company," said Mayer. "Since we announced the decision, we've been contacted by mainstream, top of the line, institutions that have not been interested in supporting us."

Glaser is demanding a meeting with the board no later than Monday, June 23, "to negotiate a process whereby Mr. Charney will be fully reinstated to his positions within the Company and to attempt to negotiate a process whereby Mr. Charney's business reputation can be restored."

First Published: June 21, 2014: 2:46 PM ET

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Friday Links

NEW YORK (CNNMoney)

A weekly collection of design, data and interactive links.

Photo/Video
Seismik | Herman Kolgen explores vertical layering dislocations
8-Bit 3D Art | Ron Burgundy and Boba Fett rendered in 3D printed pixels
Kodama | 20syl's new music video
Milky Way | Michael Shainblum shares 3 tips for photographing the Milky Way

Design/Data viz
Maschinenangst | Vera Idelson's costume and set design illustrations for the Italian Futurist play The Anguish of the Machines
The Story of EBoy | Watch the video, it's great
Visualizing MBTA Data | An interactive exploration of Boston's subway system
LazerBlade | The affordable laser cutter and engraver
Can you find Benghazi? | Can you accurately locate Benghazi?

Code
ArnoldC | A programming language based on the one liners of Arnold Schwarzenegger
Web Starter Kit | Boilerplate & tooling for multi-device development from Google

See last week's links

Have a nice weekend!
@dubly and @talyellin

First Published: June 20, 2014: 4:21 PM ET

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