Chicago home price recovery lags









The Chicago area's housing recovery continued to lag behind other cities and the nation, as prices in November fell 1.3 percent from a month earlier, according to a widely watched barometer of the housing market.

On an annual basis, home prices in the Chicago area rose only 0.8 percent in November, the smallest positive gain recorded among the 20 cities included in the S&P/Case-Shiller home price index, released Tuesday.

Nationally, home prices rose 5.5 percent annually for the 20-city composite. Much of that gain can be traced to market improvements in once hard-hit places like Phoenix, where home prices have risen 22.8 percent in 12 months. Other cities recording strong yearly increases included Detroit, up 11.9 percent; Las Vegas, up 10 percent; San Francisco, up 12.7 percent; and Minneapolis, up 11.1 percent.

"Housing is clearly recovering," said David Blitzer, chairman of S&P Dow Jones Indices' index committee. "Prices are rising as are both new and existing home sales."

Most cities saw prices decrease in November from their October levels, which Blitzer tied with the housing market's typical winter weakness.

Nevertheless, Chicago turned in the worst monthly performance among the 20 cities. It was the third consecutive monthly decline for local home prices, which showed signs of strength earlier in 2012.

Condominium values in the Chicago market also fell for the second consecutive month. In November, they were down .9 percent from October but rose 2.7 percent from November 2011.

mepodmolik@tribune.com | Twitter @mepodmolik



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Boy Scouts may end ban on gay scouts, leaders









DALLAS—





 Boy Scouts of America is discussing ending a longstanding ban on gay members and whether to allow local organizations to decide their own policy, a spokesman said on Monday.

Lifting the ban would mark a dramatic reversal for the 103-year-old organization, which only last summer reaffirmed its policy amid heavy criticism from gay rights groups and some parents of scouts.

"The BSA is discussing potentially removing the national membership restriction regarding sexual orientation," spokesman Deron Smith said in an email to Reuters.

"The policy change under discussion would allow the religious, civic or educational organizations that oversee and deliver Scouting to determine how to address this issue," the spokesman said.

The organization, which had more than 2.6 million youth members and more than 1 million adult members at the end of 2012, "would not, under any circumstances, dictate a position to units, members, or parents," Smith said.

The Boy Scouts won a 5-4 U.S. Supreme Court ruling allowing the organization to ban gays in 2000, but has come under increasing public pressure in recent years from activists including Zach Wahls, an Eagle scout with two lesbian mothers, and Jennifer Tyrrell, a lesbian mother from Ohio who was ousted as a Scout den leader and treasurer.

"This is absolutely a step in the right direction," Wahls said on Monday, adding that if the national board approves the change, he would turn to persuading local councils to enact nondiscrimination policies.

Wahls is the founder of Scouts for Equality, which collected more than 1.2 million signatures opposing the anti-gay policy. His group's membership includes 3,151 other Eagle scouts.

"I think the Boy Scouts is obviously a positive move, but they've been discussing this for a while," said Shane Windmeyer, executive director of Campus Pride, a national group supporting the rights of lesbian, gay, bisexual and transgender people.



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Crucial, long-overdue BlackBerry makeover arrives






TORONTO (AP) — The maker of the BlackBerry smartphone is promising a speedy browser, a superb typing experience and the ability to keep work and personal identities separate on the same phone, the fruit of a crucial, long-overdue makeover for the Canadian company.


Thorsten Heins, chief executive of Research In Motion Ltd., will reveal the first phone with the new BlackBerry 10 system in New York on Wednesday. Repeated delays have left the once-pioneering BlackBerry an afterthought in the shadow of Apple’s trend-setting iPhone and Google’s Android-driven devices.






Now, there’s some optimism. Previews of the software have gotten favorable reviews on blogs. Financial analysts are starting to see some slight room for a comeback. RIM‘s stock has nearly tripled to about $ 16.30 from a nine-year low in September, though it’s still nearly 90 percent below its 2008 peak of $ 147.


Most analysts consider a BlackBerry 10 success to be crucial for the company’s long-term viability.


“The old models are becoming obsolete quickly,” BGC Financial analyst Colin Gillis said. “There is still a big user base but it’s going to rotate off. The question is: Where do they rotate to?”


The BlackBerry, pioneered in 1999, has been the dominant smartphone for on-the-go business people. Corporate information-technology managers like the phones because they’re relatively secure and easy to manage.


The BlackBerry has also crossed over to consumers. President Barack Obama couldn’t bear to part with it when he took office. Oprah Winfrey declared it one of her “favorite things.” People got so addicted that the device was nicknamed “the CrackBerry.”


But when the iPhone came out in 2007, it showed that phones can do much more than email and phone calls. They can play games, music and movies. Android came along to offer even more choices. Though IT managers still love BlackBerrys, employees were bringing their own devices to the workplace — a trend Heins acknowledged RIM was slow to adapt to.


Suddenly, the BlackBerry looked ancient.


Even as BlackBerry sales continued to grow in many parts of the world, many BlackBerry users in North America switched to iPhones and Android devices. BlackBerry’s worldwide subscriber based peaked at 80 million in the quarter that ended Sept. 1, before dropping to 79 million in the most-recent quarter. In the U.S., according to research firm IDC, shipments of BlackBerry phones plummeted from 46 percent of the market in 2008 to 2 percent in 2012.


RIM promised a new system to catch up, using technology it got through its 2010 purchase of QNX Software Systems. RIM initially said BlackBerry 10 would come by early 2012, but then the company changed that to late 2012. A few months later, that date was pushed further, to early 2013, missing the lucrative holiday season. The holdup helped wipe out more than $ 70 billion in shareholder wealth and 5,000 jobs.


Although executives have been providing a glimpse at some of BlackBerry 10′s new features for months, Heins will finally showcase a complete system at Wednesday’s event. Devices will go on sale soon after that.


RIM redesigned the system to embrace the multimedia, apps and touch-screen experience prevalent today.


“Historically there have been areas that have not been our strongest points,” Rick Costanzo, RIM’s executive vice president of global sales, said in an interview. “Not only have we caught up, but we may even be better than some of the competition now.”


Costanzo said “no one else can touch” what RIM’s new system offers.


The new operating system promises better multitasking than either the iPhone or Android. Simply swipe a finger across the phone’s display screen to switch to another program.


All emails and notifications from such applications as Twitter and Facebook go to the BlackBerry Hub, a nerve center accessible with a finger swipe even if you have another application open. One can peek into it and open an email, or return to the previous application without opening the email.


“You are not going in and out of applications; you’re flowing through applications with one simple gesture of your finger,” Costanzo said. “You can leave applications running. You can effortlessly flow between them. So that’s completely unique to us.”


That said, multitasking will be limited and won’t allow for extensive use of apps side by side, as is typically permitted on traditional computers. If you’re watching a video, it will still run while you check for email. But it will pause if you decide to open an email and resume when you are done.


The BlackBerry’s touch-screen keyboard promises to learn a user’s writing style and suggest words and phrases to complete, going beyond typo corrections offered by rivals. See the one you want, and flick it up to the message area. Costanzo said that “BlackBerry offers the best keyboard, period.”


Gus Papageorgiou, a Scotiabank financial analyst who has tried it out, agreed with that assessment and said the keyboard even learns and adjusts to your thumb placements.


The first BlackBerry 10 phone will have only a touch screen. RIM has said it will release a version with a physical keyboard soon after that. That’s an area RIM has excelled at, and it’s one reason many BlackBerry users have remained loyal despite temptations to switch.


Another distinguishing feature will be the BlackBerry Balance, which allows two personas on the same device. Businesses can keep their data secure without forcing employees to get a second device for personal use. For instance, IT managers can prevent personal apps from running inside corporate firewalls, but those managers won’t have access to personal data on the device.


With Balance, “you can just switch from work to personal mode,” Papageorgiou said. “I think that is something that will attract a lot of people.”


RIM is also claiming that the BlackBerry 10′s browser will be speedy, even faster than browsers for laptop and desktop computers. According to Papageorgiou, early, independent tests between the BlackBerry 10 and the iPhone support that claim.


Regardless of BlackBerry 10′s advances, though, the new system will face a key shortcoming: It won’t have as many apps written by outside companies and individuals as the iPhone and Android. RIM has said it plans to launch BlackBerry 10 with more than 70,000 apps, including those developed for RIM’s PlayBook tablet, first released in 2011. Even so, that’s just a tenth of what the iPhone and Android offer. Papageorgiou said the initial group will include the most popular ones such as Twitter and Facebook. But RIM will have to persuade others to make a BlackBerry version, when they are already struggling to keep up with both the iPhone and Android.


Like many analysts, Papageorgiou recently upgraded RIM’s stock, but cautions that longtime BlackBerry users will have to get used to a whole new operating system.


He said RIM can be successful if about a third of current subscribers upgrade and if the company can get 4 million new users overseas, especially in countries where the BlackBerry has remained popular. IDC said smartphone shipments grew 44 percent in 2012. If those trends continue, it will be possible for the BlackBerry to grow even if iPhone and Android users don’t switch.


“This doesn’t have to be the best smartphone on the planet to be a success for RIM,” he said. “I think the big question though is, if it fails, is it just too late? Are the other two ecosystems just so advanced that no one can catch up? That’s a big risk.”


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Barbara Walters, hospitalized after fall, recovering from chicken pox






NEW YORK (Reuters) – Celebrity newswoman Barbara Walters, who was hospitalized earlier this month after falling and injuring her head, is recovering from chicken pox, her co-host Whoopi Goldberg said Monday on “The View” talk show.


Goldberg said Walters, 83, who is in a New York hospital, has been told to rest and is not receiving visitors.






“You all know that she fell and cut her head 10 days ago and then was running a temperature,” Goldberg said on the show.


“But it turns out it is all the result of a delayed childhood. Barbara has the chicken pox,” Goldberg adding, saying Walters had never had the illness as a child.


Walters, 83, had been admitted to a Washington hospital during President Barack Obama‘s inauguration weekend after she fell and cut her head at the British ambassador’s residence, her network ABC said.


Goldberg joked: “She’s been told to rest, she’s not allowed any visitors, and we’re telling you, Barbara, no scratching.”


ABC-TV said Walters, who created the long-running talk show after working decades as one of television news’ best-known journalists, was transferred to a New York hospital late last week from Washington and was expected to be discharged soon.


Despite Goldberg’s light-hearted remarks about the illness, usually associated with children, chicken pox can be serious for adults and the elderly, accompanied by more severe itching from hundreds of blisters.


Headaches, fever and chills, sometimes leading to pneumonia, can follow if the illness is not properly treated and precautions are not taken, or if the patient has a compromised immune system.


(Reporting by Chris Michaud; Editing by Patricia Reaney and Philip Barbara)


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Well: Keeping Blood Pressure in Check

Since the start of the 21st century, Americans have made great progress in controlling high blood pressure, though it remains a leading cause of heart attacks, strokes, congestive heart failure and kidney disease.

Now 48 percent of the more than 76 million adults with hypertension have it under control, up from 29 percent in 2000.

But that means more than half, including many receiving treatment, have blood pressure that remains too high to be healthy. (A normal blood pressure is lower than 120 over 80.) With a plethora of drugs available to normalize blood pressure, why are so many people still at increased risk of disease, disability and premature death? Hypertension experts offer a few common, and correctable, reasons:


Jane Brody speaks about hypertension.




¶ About 20 percent of affected adults don’t know they have high blood pressure, perhaps because they never or rarely see a doctor who checks their pressure.

¶ Of the 80 percent who are aware of their condition, some don’t appreciate how serious it can be and fail to get treated, even when their doctors say they should.

¶ Some who have been treated develop bothersome side effects, causing them to abandon therapy or to use it haphazardly.

¶ Many others do little to change lifestyle factors, like obesity, lack of exercise and a high-salt diet, that can make hypertension harder to control.

Dr. Samuel J. Mann, a hypertension specialist and professor of clinical medicine at Weill-Cornell Medical College, adds another factor that may be the most important. Of the 71 percent of people with hypertension who are currently being treated, too many are taking the wrong drugs or the wrong dosages of the right ones.

Dr. Mann, author of “Hypertension and You: Old Drugs, New Drugs, and the Right Drugs for Your High Blood Pressure,” says that doctors should take into account the underlying causes of each patient’s blood pressure problem and the side effects that may prompt patients to abandon therapy. He has found that when treatment is tailored to the individual, nearly all cases of high blood pressure can be brought and kept under control with available drugs.

Plus, he said in an interview, it can be done with minimal, if any, side effects and at a reasonable cost.

“For most people, no new drugs need to be developed,” Dr. Mann said. “What we need, in terms of medication, is already out there. We just need to use it better.”

But many doctors who are generalists do not understand the “intricacies and nuances” of the dozens of available medications to determine which is appropriate to a certain patient.

“Prescribing the same medication to patient after patient just does not cut it,” Dr. Mann wrote in his book.

The trick to prescribing the best treatment for each patient is to first determine which of three mechanisms, or combination of mechanisms, is responsible for a patient’s hypertension, he said.

¶ Salt-sensitive hypertension, more common in older people and African-Americans, responds well to diuretics and calcium channel blockers.

¶ Hypertension driven by the kidney hormone renin responds best to ACE inhibitors and angiotensin receptor blockers, as well as direct renin inhibitors and beta-blockers.

¶ Neurogenic hypertension is a product of the sympathetic nervous system and is best treated with beta-blockers, alpha-blockers and drugs like clonidine.

According to Dr. Mann, neurogenic hypertension results from repressed emotions. He has found that many patients with it suffered trauma early in life or abuse. They seem calm and content on the surface but continually suppress their distress, he said.

One of Dr. Mann’s patients had had high blood pressure since her late 20s that remained well-controlled by the three drugs her family doctor prescribed. Then in her 40s, periodic checks showed it was often too high. When taking more of the prescribed medication did not result in lasting control, she sought Dr. Mann’s help.

After a thorough work-up, he said she had a textbook case of neurogenic hypertension, was taking too much medication and needed different drugs. Her condition soon became far better managed, with side effects she could easily tolerate, and she no longer feared she would die young of a heart attack or stroke.

But most patients should not have to consult a specialist. They can be well-treated by an internist or family physician who approaches the condition systematically, Dr. Mann said. Patients should be started on low doses of one or more drugs, including a diuretic; the dosage or number of drugs can be slowly increased as needed to achieve a normal pressure.

Specialists, he said, are most useful for treating the 10 percent to 15 percent of patients with so-called resistant hypertension that remains uncontrolled despite treatment with three drugs, including a diuretic, and for those whose treatment is effective but causing distressing side effects.

Hypertension sometimes fails to respond to routine care, he noted, because it results from an underlying medical problem that needs to be addressed.

“Some patients are on a lot of blood pressure drugs — four or five — who probably don’t need so many, and if they do, the question is why,” Dr. Mann said.


How to Measure Your Blood Pressure

Mistaken readings, which can occur in doctors’ offices as well as at home, can result in misdiagnosis of hypertension and improper treatment. Dr. Samuel J. Mann, of Weill Cornell Medical College, suggests these guidelines to reduce the risk of errors:

¶ Use an automatic monitor rather than a manual one, and check the accuracy of your home monitor at the doctor’s office.

¶ Use a monitor with an arm cuff, not a wrist or finger cuff, and use a large cuff if you have a large arm.

¶ Sit quietly for a few minutes, without talking, after putting on the cuff and before checking your pressure.

¶ Check your pressure in one arm only, and take three readings (not more) one or two minutes apart.

¶ Measure your blood pressure no more than twice a week unless you have severe hypertension or are changing medications.

¶ Check your pressure at random, ordinary times of the day, not just when you think it is high.

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2012 stocks: How Illinois cos. fared









If you invested heavily in Illinois companies that provide consulting services, you had little reason to celebrate in 2012.

While the Standard & Poor's 500 index ended the year up 13 percent, most large businesses in the region that counsel other companies on how to improve their operations saw their stock prices drop.

Business support services was one of the few sectors getting clobbered in a 2012 Tribune ranking of Illinois and northwest Indiana stocks' performance.

Stock prices gained at about 70 percent of the 127 companies on the list, and about half outperformed the S&P 500. Bank owners such as Taylor Capital Group emerged from their 2011 doldrums, and Ulta Salon Cosmetics & Fragrance Inc. and Discover Financial Services marked their second consecutive year of soaring stock prices.

The year's biggest decliner, down 76 percent, was Groupon, as once-torrid revenue growth at the daily deals offerer started slowing.

Career Education was the second-worst performer; its stock fell 56 percent. The highly scrutinized for-profit school chain said it would close campuses and cut jobs amid sinking revenue and financial losses.

Sectors boosted by broad gains in 2012 included electrical parts and equipment, industrial machinery, and specialty chemicals.

Of seven Illinois banks on the list, all but one outperformed the S&P 500, with price appreciation of those six ranging from 16 to 86 percent.

In contrast, stocks of four of five professional services firms — Navigant Consulting, Huron Consulting Group, Heidrick & Struggles International and R.R. Donnelley & Sons — closed down 2 to 38 percent.

Each had its own set of issues.

Navigant's services, for example, include advising companies that face disputes, litigation and investigations, including government probes, as well as businesses that need help valuing potential mergers and acquisitions.

"You see fewer government investigations during an election year, as regulators are leaving their jobs, and they don't want to start new ones," said Tobey Sommer, a SunTrust Robinson Humphrey analyst. "Also, worries about the 'fiscal cliff' slowed M&A because CEOs didn't want to look foolish acquiring a company in September ahead of the fiscal cliff when they might have been able to buy it for 20 percent less in January had we gone off."

Meanwhile, Heidrick's troubles included a slowing market for executive searches. In early 2012, analysts expected Heidrick's annual earnings to be in the range of about $1.30 per share. It appears that it will earn closer to 57 cents a share.

Huron's earnings estimates during 2012 were also trimmed, to about $2.10 from about $2.40 a share as the timing of fee payments to its health care consulting business proved volatile.

"Its underlying demand is strong," but an increasing number of clients had signed contracts where a larger portion of revenue was contingent on the outcome of Huron's consulting work, said Randle Reece, analyst with Avondale Partners LLC. That made it harder for the company and the analysts who cover it to predict the timing of revenues, since they are deferred.

For investors interested in "Dumpster diving," Morningstar Inc. considers Exelon, WMS Industries and Caterpillar to be high quality yet undervalued this year, said Heather Brilliant, chief equities strategist.

Navigant is among the region's beaten-down stocks liked by stock research firm EVA Dimensions LLC. "Its fundamentals are improving, and it's really cheap," said EVA analyst Andrew Zamfotis.

Best of the best

Here are the top three stock gainers of 2012:

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Fire at crowded nightclub kills at least 200 in Brazil

A fire swept through a crowded nightclub in southern Brazil early Sunday, killing at least 245 people and leaving at least 200 injured, police and firefighters said. (Jan. 27)










SANTA MARIA, Brazil (Reuters) - A nightclub fire killed at least 232 people in southern Brazil early on Sunday when a band's pyrotechnics show set the building ablaze and fleeing partygoers stampeded toward blocked and overcrowded exits in the ensuing panic, officials said.

The blaze in the university town of Santa Maria was started by a band member or someone from its production team igniting a flare, which then set fire to the ceiling, said Luiza Sousa, a civil police official. The fire spread "in seconds," she said.






Local fire officials said at least one exit was locked and that bouncers, who at first thought those fleeing were trying to skip out on bar tabs, initially blocked patrons from leaving. The security staff relented only when they saw flames engulfing the ceiling.

The tragedy, in a packed venue in one of Brazil's most prosperous states, comes as the country scrambles to improve safety, security and logistical shortfalls ahead of the 2014 World Cup soccer tournament and the 2016 Olympics, both intended to showcase the economic advances and first-world ambitions of Latin America's largest nation.

In Santa Maria, a city of more than 275,000 people, rescue workers and weary officials wept alongside family and friends of the victims at a local gymnasium being used as a makeshift morgue.

"It's the saddest, saddest day of my life," said Neusa Soares, the mother of one of those killed, 22-year-old Viviane Tolio Soares. "I never thought I would have to live to see my girl go away."

President Dilma Rousseff cut short an official visit to Chile and flew to Santa Maria, where she wept as she spoke to relatives of the victims at the gym.

"All I can say at the moment is that my feelings are of deep sorrow," said Rousseff, who began her political career in Rio Grande do Sul, the state where the fire occurred.

News of the fire broke on Sunday morning, when local news broadcast images of shocked people outside the Boate Kiss, as the nightclub was known. Gradually, grisly details emerged.

The vast majority of the victims, most of them university students, died of smoke inhalation, officials said. Others were crushed in the stampede.

"We ran into a barrier of the dead at the exit," Colonel Guido Pedroso de Melo, commander of the fire brigade in Rio Grande do Sul, said of the scene that firefighters found on arrival. "We had to clear a path to get to the rest of those that were inside."

Officials said more than 1,000 people may have been in the club, possibly exceeding its legal capacity. Though Internet postings about the venue suggested as many as 2,000 people at times have crammed into the club, Pedroso de Melo said no more than half that should have been inside.

He said the club was authorized to be open but its permit was in the process of being renewed.

However, Pedroso de Melo did point to several egregious safety violations - from the flare that went off during the show to the locked door that kept people from leaving.

'HAPPENED SO FAST'

When the fire began at about 2:30 a.m., many revelers were unable to find their way out amid the chaos, confusing restroom doors for exits and finding resistance from bouncers when they did find an exit.

"It all happened so fast," survivor Taynne Vendrusculo told GloboNews TV. "Both the panic and the fire spread rapidly, in seconds."

Once security guards realized the building was on fire, they tried in vain to control the blaze with a fire extinguisher, according to a televised interview with one of the guards, Rodrigo Moura. He said patrons were getting trampled as they rushed for the doors, describing it as "a horror film."

One of the club's owners has surrendered to police for questioning, GloboNews reported.

TV footage showed people sobbing outside the club before dawn, while shirtless firefighters used sledge hammers and axes to knock down an exterior wall to open up an exit.

Rescue officials moved the bodies to the local gym and separated them by gender. Male victims were easier to identify because most had identification on them, unlike the women, whose purses were left scattered in the devastated nightclub.

The disaster recalls other incidents including a 2003 fire at a nightclub in West Warwick, Rhode Island, that killed 100 people, and a Buenos Aires nightclub blaze in 2004 that killed nearly 200. In both incidents, a band or members of the audience ignited fires that set the establishment ablaze.

The Rhode Island fire shocked local and federal officials because of the rarity of such incidents in the United States, where enforcement of safety codes is considered to be relatively strict. After the Buenos Aires blaze, Argentine officials closed many nightclubs and other venues and ultimately forced the city's mayor from office because of poor oversight of municipal codes.

The fire early on Sunday occurred in one of the wealthiest, most industrious and culturally distinct regions of Brazil. Santa Maria is about 186 miles west of Porto Alegre, the capital of a state settled by Germans and other immigrants from northern Europe.

Local clichés paint the region as stricter and more squared away than the rest of Brazil, where most residents are a mix descended from native tribes, Portuguese colonists, African slaves, and later influxes of immigrants from southern Europe.

Rio Grande do Sul state's health secretary, Ciro Simoni, said emergency medical supplies from all over the state were being sent to the scene. States from all over Brazil offered support, and sympathy messages poured in from foreign leaders.

(Additional reporting by Guillermo Parra-Bernal, Gustavo Bonato, Jeferson Ribeiro, Eduardo Simões, Brian Winter and Guido Nejamkis.; Writing by Paulo Prada; Editing by Todd Benson, Kieran Murray and Eric Beech)

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Canada denies Randy Quaid’s request to stay






TORONTO (AP) — Canadian immigration officials have denied U.S. actor Randy Quaid‘s request for permanent resident status in Canada.


A Canadian government official confirmed late Saturday his request for permanent status has been denied. The official spoke on condition of anonymity because they were not authorized to speak publicly. Quaid can appeal the decision to the federal court.






U.S. officials last year refused to seek extradition of the actor and his wife from Canada to face felony vandalism charges in Santa Barbara, California, but authorities in the coastal town say they’ll still have the couple arrested if they return to the states. 


Quaid has sought to stay in Canada, claiming he was being hunted by “Hollywood star-whackers” who had killed his friends David Carradine and Heath Ledger. 


Quaid’s trouble began in 2010 when he and his wife were arrested for causing more than $ 5,000 damage at a hillside home they were renting. 


Randy Quaid is the older brother of actor Dennis Quaid and is best-known for his roles in films such as “National Lampoon’s Vacation” and “Independence Day.” He won a Golden Globe award for his depiction of President Lyndon Johnson in a TV movie in the late 1980s.


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2012 stock report: Pains and gains









If you invested heavily in Illinois companies that provide consulting services, you had little reason to celebrate in 2012.

While the Standard & Poor's 500 index ended the year up 13 percent, most large businesses in the region that counsel other companies on how to improve their operations saw their stock prices drop.

Business support services was one of the few sectors getting clobbered in a 2012 Tribune ranking of Illinois and northwest Indiana stocks' performance.

Stock prices gained at about 70 percent of the 127 companies on the list, and about half outperformed the S&P 500. Bank owners such as Taylor Capital Group emerged from their 2011 doldrums, and Ulta Salon Cosmetics & Fragrance Inc. and Discover Financial Services marked their second consecutive year of soaring stock prices.

The year's biggest decliner, down 76 percent, was Groupon, as once-torrid revenue growth at the daily deals offerer started slowing.

Career Education was the second-worst performer; its stock fell 56 percent. The highly scrutinized for-profit school chain said it would close campuses and cut jobs amid sinking revenue and financial losses.

Sectors boosted by broad gains in 2012 included electrical parts and equipment, industrial machinery, and specialty chemicals.

Of seven Illinois banks on the list, all but one outperformed the S&P 500, with price appreciation of those six ranging from 16 to 86 percent.

In contrast, stocks of four of five professional services firms — Navigant Consulting, Huron Consulting Group, Heidrick & Struggles International and R.R. Donnelley & Sons — closed down 2 to 38 percent.

Each had its own set of issues.

Navigant's services, for example, include advising companies that face disputes, litigation and investigations, including government probes, as well as businesses that need help valuing potential mergers and acquisitions.

"You see fewer government investigations during an election year, as regulators are leaving their jobs, and they don't want to start new ones," said Tobey Sommer, a SunTrust Robinson Humphrey analyst. "Also, worries about the 'fiscal cliff' slowed M&A because CEOs didn't want to look foolish acquiring a company in September ahead of the fiscal cliff when they might have been able to buy it for 20 percent less in January had we gone off."

Meanwhile, Heidrick's troubles included a slowing market for executive searches. In early 2012, analysts expected Heidrick's annual earnings to be in the range of about $1.30 per share. It appears that it will earn closer to 57 cents a share.

Huron's earnings estimates during 2012 were also trimmed, to about $2.10 from about $2.40 a share as the timing of fee payments to its health care consulting business proved volatile.

"Its underlying demand is strong," but an increasing number of clients had signed contracts where a larger portion of revenue was contingent on the outcome of Huron's consulting work, said Randle Reece, analyst with Avondale Partners LLC. That made it harder for the company and the analysts who cover it to predict the timing of revenues, since they are deferred.

For investors interested in "Dumpster diving," Morningstar Inc. considers Exelon, WMS Industries and Caterpillar to be high quality yet undervalued this year, said Heather Brilliant, chief equities strategist.

Navigant is among the region's beaten-down stocks liked by stock research firm EVA Dimensions LLC. "Its fundamentals are improving, and it's really cheap," said EVA analyst Andrew Zamfotis.

Best of the best

Here are the top three stock gainers of 2012:

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Fire 'rekindles' at Bridgeport warehouse




















A vacant warehouse in Bridgeport continues to burn.




















































A nearly 100-year-old Bridgeport warehouse is on fire again this morning after it was gutted during a 5-alarm fire on Tuesday, according to the Chicago Fire Department.


About 10 a.m., a tower ladder truck was sent to the scene to handle the rekindle at the ruins, according to the fire department.


Last night, as crews began demolishing the warehouse at 3757 S. Ashland Ave., the fire department officially released its conclusion as to how it began.








"In layman's terms, that means something that was burning such as a flame or match got near something that would burn," Langford said.


Langford said the building had no gas or electric service and no one was known to be living there. But the night of the blaze, Fire Commissioner Jose Santiago told reporters that in the past, firefighters had been called to the warehouse for small fires caused when squatters lit fires to stay warm.


The matter has been forwarded to the Chicago Police Bomb and Arson unit to determine if the fire involved foul play, Langford and police said.


Friday morning, a private wrecking company hired by the owners of the building began its demolition, Chicago Fire Department spokeswoman Meg Ahlheim said.


Tuesday night, a fire department battalion chief spotted smoke from the blaze as he drove past around 9 p.m. A third of the department's on-duty personnel were called to fight a fire fed by century-old support timbers. Crews have remained there since, dousing flames from the smouldering debris.


chicagobreaking@tribune.com






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