ADOBE SYSTEMS $37.88 - Nasdaq symbol ADBE

ADOBE SYSTEMS $37.88 (Nasdaq symbol ADBE; TSINetwork Rating: Average) (408-536- 6000; www.adobe.com; Shares outstanding: 495.1 million; Market cap: $18.8 billion; No dividends paid) reports that in the fourth quarter of its 2012 fiscal year, which ended November 30, 2012, its earnings fell 7.4%, to $307.9 million from $332.6 million a year earlier.

Before one-time items, earnings per share declined 9.0%, to $0.61 from $0.67, on more shares outstanding. Revenue was flat at $1.15 billion.

Adobe is doing a good job of selling its Creative Cloud package of photo-editing and desktop-publishing programs as a subscription service instead of a one-time purchase.

As a result, the company’s subscription revenue jumped 51.5% from a year earlier and now accounts for 17% of its overall revenue. Adobe still gets 74% of its revenue from direct software sales. Services and support supply the remaining 9%.

Moving to a subscription model has slowed Adobe’s short-term revenue and earnings growth, but it should give the company steadier revenue streams.

Adobe is still a hold.

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Blue Chip Stocks

Blue chip stocks are big, well-established, dividend-paying corporations with strong business prospects. These are companies that also have sound management that should be able to make the right moves to keep competing successfully in a changing marketplace.

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Dividend stocks make cash payouts that serve as a way for companies to share the wealth they’ve accumulated. These payouts are drawn from earnings and cash flow and paid to the shareholders of the company. Typically, these dividends are paid quarterly, although they may be paid annually or even monthly as well.

Value Stocks

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One of the sweetest and most profitable pleasures of successful investing is to buy high-quality “value stocks” (or stocks that are reasonably priced, if not cheap, in relation to its sales, earnings or assets), then hold on to them as mainstream investors recognize the value and push up the share price.

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Energy Stocks

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