Wednesday, July 31, 2013

Why Bank of America Is Booming Today

Three and a half hours into the trading day, Bank of America (NYSE: BAC  ) shares are up 3.1% on strong second-quarter earnings and some reassuring words from the Federal Reserve.

Wall Street and Washington weigh in
B of A is reporting that net income rose 63% year over year, from $2.5 billion to $4.0 billion, while total revenue increased 3.2% year over year, from $22.0 billion to $22.7 billion. Earnings per share are $0.32, beating analyst expectations of $0.25.

Over on Capitol Hill, Fed chairman Ben Bernanke is testifying to the House Committee on Financial Services on U.S. monetary policy. His comments indicate that the central bank will still begin tapering QE later this year, so long as the American economy continues trending in the right direction, but that the Fed believes the economy is still clearly not where it should be.

Foolish bottom line
The markets have waited with baited breath on the words of Federal Reserve chairmen for years now, and have responded either calmly and coolly, or flown completely off the handle. Today, investors have taken the former road, the one not often enough taken, and have responded to Bernanke's comments with the equanimity they deserve.

He didn't say anything today he hasn't said since the Fed's last policy setting meeting in June. But I think the message is finally getting through to the markets that just because there's a plan in place to dial back quantitative easing doesn't mean it's happening tomorrow. Nor does it necessarily mean it's going to happen at all; tapering remains dependent on whether the economy continues to improve.

That said, the real energy behind B of A's strong performance today is its strong second-quarter earnings. In addition to what was mentioned above, the bank also saw more business from equities sales and trading.

Unfortunately, some of the bank's immense increase in profit was the result of cutting costs, but we all know you can only cut so much fat before you start cutting into muscle. A 63% increase in profit on 3.2% of revenue growth is very likely unsustainable. That said, it's good to see some revenue growth. In the first quarter, revenue growth was generally pitiful for the big banks.

But as always, remember that investing Foolishly means investing for the long term: tuning out market noise and tuning into the fundamentals of the companies you're invested in. Check in on your stocks once a month, or even once a quarter, and leave the daily ticker checks to the day traders: Your broker may not thank you, but your portfolio definitely will. 

Many investors are terrified about investing in big banking stocks after the crash, but the sector has one notable stand-out. In a sea of mismanaged and dangerous peers, it rises above as "The Only Big Bank Built to Last." You can uncover the top pick that Warren Buffett loves in The Motley Fool's new report. It's free, so click here to access it now.

Tuesday, July 30, 2013

3 Stocks I'm Watching Closely This Earnings Season

Earnings season kicks off this week, which means a lot of early mornings and long nights for Wall Street analysts. For us Fools, earnings season is really just a time to check in with the companies we own, in order to make sure the investment thesis remains intact. That being said, there are some companies that do need to be watched a bit more closely, which is why I'm going to be paying special attention to the following three names.

Nuverra Environmental Solutions (NYSE: NES  )
It was a tough quarter for Nuverra as its name change didn't help boost its stock price, which declined by almost 33%. Other than slightly missing earnings due to weather issues, it was a fairly quiet quarter for the company. The only other real news during the quarter was the company's acquisition of a solid waste disposal site in the Bakken.

This quarter I'll be looking to see if the company changes its guidance for full-year revenue and adjusted EBITDA. The guidance numbers to watch are revenue of $750 million-$825 million and adjusted EBITDA range of $200 million-$225 million, which the company held steady even after missing guidance last quarter due to the aforementioned weather problems. If Nuverra misses again, causing it to reduce guidance, it could signal that the company is experiencing deeper problems than expected. Meanwhile, reaffirming guidance at the upper end of the range would be a welcome sign that its full-cycle environmental solution is really beginning to catch on with customers.

SandRidge Energy (NYSE: SD  )
While all has been quiet at Nuverra, the same can't be said for SandRidge. The company, which was under pressure from activist investors, decided it was time to show founder and former CEO Tom Ward the door. Now with new leadership in place, SandRidge needs to move past its past and begin to live up to its promise.

That promise is as vast as its massive 1.85 million net acre position in the Mississippian Lime formation. With enough capital to develop the play through 2015, the key for the company now is to simply execute on its plan to produce high rates of return from the play. That means I'll be keeping an eye on well costs as well as oil production. The key numbers here are well costs below $3 million per well and oil production growth of at least 64% in the Mississippian. If SandRidge can remain on pace to meet or exceed those numbers this quarter, it should bode well for its future.

Magnum Hunter Resources (NYSE: MHR  )
The last company I'll be watching this quarter is Magnum Hunter, which will finally be delivering its first quarter results on July 9. The company has been behind in providing investors with results this year after it fired its auditors, which caused its annual report, and subsequent first-quarter report, to be delayed.

I'll not only be interested to see what management has to say about its first quarter, which ended in March, but also what it has to say about the just ended June quarter. The key areas to watch are the company's liquidity as well as an update on its Utica drilling program. While the sale of its Eagle Ford acreage added to the company's financial flexibility, there isn't a whole lot of wiggle room looking ahead to next year. That's why it will be important to see if the company has made any progress on its non-core asset sales. Execution on those asset sales, as well as on the Utica, is key for investors if the company is to deliver solid gains in the years ahead.

Final Foolish thoughts
I'm most interested to hear what the new management team at SandRidge has to say. The company has vast potential and its trading at a real discount to that potential. The problem is that the company's checkered past seems to be clouding its future potential. 

Finally, while all three stocks are benefiting from the elevated price of oil, I wouldn't say that these are the best three names to play oil these days. To get those names, you need to check out The Motley Fool's "3 Stocks for $100 Oil." For FREE access to this special report, simply click here now.

Is Toro Growing or Slowing?

There's no foolproof way to know the future for Toro (NYSE: TTC  ) or any other company. However, certain clues may help you see potential stumbles before they happen -- and before your stock craters as a result.

A cloudy crystal ball
In this series, we use accounts receivable and days sales outstanding to judge a company's current health and future prospects. It's an important step in separating the pretenders from the market's best stocks. Alone, AR -- the amount of money owed the company -- and DSO -- the number of days' worth of sales owed to the company -- don't tell you much. However, by considering the trends in AR and DSO, you can sometimes get a window onto the future.

Sometimes, problems with AR or DSO simply indicate a change in the business (like an acquisition), or lax collections. However, AR that grows more quickly than revenue, or ballooning DSO, can, at times, suggest a desperate company that's trying to boost sales by giving its customers overly generous payment terms. Alternately, it can indicate that the company sprinted to book a load of sales at the end of the quarter, like used-car dealers on the 29th of the month. (Sometimes, companies do both.)

Why might an upstanding firm like Toro do this? For the same reason any other company might: to make the numbers. Investors don't like revenue shortfalls, and employees don't like reporting them to their superiors.

Is Toro sending any potential warning signs? Take a look at the chart below, which plots revenue growth against AR growth, and DSO:

Source: S&P Capital IQ. Data is current as of last fully reported fiscal quarter. FQ = fiscal quarter.

The standard way to calculate DSO uses average accounts receivable. I prefer to look at end-of-quarter receivables, but I've plotted both above.

Watching the trends
When that red line (AR growth) crosses above the green line (revenue growth), I know I need to consult the filings. Similarly, a spike in the blue bars indicates a trend worth worrying about. Toro's latest average DSO stands at 31.5 days, and the end-of-quarter figure is 39.8 days. Differences in business models can generate variations in DSO, and business needs can require occasional fluctuations, but all things being equal, I like to see this figure stay steady. So, let's get back to our original question: Based on DSO and sales, does Toro look like it might miss its numbers in the next quarter or two?

The raw numbers suggest potential trouble ahead. For the last fully reported fiscal quarter, Toro's year-over-year revenue grew 1.9%, and its AR grew 12.8%. That's a yellow flag. End-of-quarter DSO increased 10.7% over the prior-year quarter. It was up 5.4% versus the prior quarter. Still, I'm no fortuneteller, and these are just numbers. Investors putting their money on the line always need to dig into the filings for the root causes and draw their own conclusions.

Is Toro the right retailer for your portfolio? Learn how to maximize your investment income and ""Secure Your Future With 9 Rock-Solid Dividend Stocks,"" including one above-average retailing powerhouse. Click here for instant access to this free report.

Add Toro to My Watchlist.

Monday, July 29, 2013

10 Best Energy Stocks To Invest In 2014

Key Energy Services (NYSE: KEG  ) reported earnings on April 25. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), Key Energy Services missed estimates on revenues and missed estimates on earnings per share.

Compared to the prior-year quarter, revenue shrank. Non-GAAP earnings per share dropped significantly. GAAP earnings per share dropped to zero.

Margins shrank across the board.

Revenue details
Key Energy Services reported revenue of $428.4 million. The 13 analysts polled by S&P Capital IQ wanted to see a top line of $443.8 million on the same basis. GAAP reported sales were 12% lower than the prior-year quarter's $486.8 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

10 Best Energy Stocks To Invest In 2014: Noble Corp (NE)

Noble Corporation is an offshore drilling contractor for the oil and gas industry. The Company performs contract drilling services with its fleet of 79 mobile offshore drilling units and one floating production storage and offloading unit (FPSO) located globally. As of December 31, 2011, its fleet consisted of 14 semisubmersibles, 14 drillships, 49 jackups and two submersibles. Its fleet includes 11 units under construction, which include five ultra-deepwater drillships, and six jackup rigs. As of February 15, 2012, approximately 84% of its fleet was located outside the United States in areas, which included Mexico, Brazil, the North Sea, the Mediterranean, West Africa, the Middle East, India and the Asian Pacific. During the year ended December 31, 2011, it completed construction on the Noble Bully I, a drillship, owned through a joint venture with a subsidiary of Royal Dutch Shell plc; completed construction on the Noble Bully II, a drillship, and it completed construction of Globetrotter-class drillship. As of February 15, 2012, it had 10 rigs under contract in Mexico with Pemex Exploracion y Produccion (Pemex).

During 2011, the Company conducted offshore contract drilling operations, which accounted for over 98% of its operating revenues. It conducts its contract drilling operations in the United States Gulf of Mexico, Mexico, Brazil, the North Sea, the Mediterranean, West Africa, the Middle East, India and the Asian Pacific. During 2011, revenues from Shell and its affiliates accounted for approximately 24% of its total operating revenues. During 2011, revenues from Petroleo Brasileiro S.A. (Petrobras) accounted for approximately 18% and 19% of its total operating revenues. Revenues from Pemex accounted for approximately 15%, 20% and 23% of its total operating revenues.

Semisubmersibles

Semisubmersibles are floating platforms which, by means of a water ballasting system, can be submerged to a predetermined depth so that a substantial portion of the hull is b! elow the water surface during drilling operations. As of December 31, 2011, the semisubmersible fleet consisted of 14 units, including five Noble EVA-4000 semisubmersibles; three Friede & Goldman 9500 Enhanced Pacesetter semisubmersibles; two Pentagone 85 semisubmersibles; two Bingo 9000 design unit submersibles; one Aker H-3 Twin Hull S1289 Column semisubmersible, and one Offshore Co. SCP III Mark 2 semisubmersible.

Drillships

The Company�� drillships are self-propelled vessels. These units maintain their position over the well through the use of either a fixed mooring system or a computer controlled dynamic positioning system. Its drillships are capable of drilling in water depths from 1,000 to 12,000 feet. The maximum drilling depth of its drillships ranges from 20,000 feet to 40,000 feet. As of December 31, 2011, the drillship fleet consisted of 14 units, including four drillships under construction with Hyundai Heavy Industries Co. Ltd. (HHI); three Gusto Engineering Pelican Class drillships; two Bully-class drillships to be operated by it through a 50% joint venture with a subsidiary of Shell; one dynamically positioned Globetrotter-class drillship that left the shipyard during the fourth quarter of 2011; one Globetrotter-class drillship under construction; one moored Sonat Discoverer Class drillship capable of drilling in Arctic environments; one NAM Nedlloyd-C drillship, and one moored conversion class drillship.

Jackups

As of December 31, 2011, the Company had 49 jackups in its fleet, including six jackups under construction. The rig hull includes the drilling rig, jacking system, crew quarters, loading and unloading facilities, storage areas for bulk and liquid materials, helicopter landing deck and other related equipment. All of its jackups are independent leg and cantilevered. Its jackups are capable of drilling to a maximum depth of 30,000 feet in water depths up to 400 feet.

Submersibles

The Company has two su! bmersible! s in the fleet, which are cold-stacked. Submersibles are mobile drilling platforms, which are towed to the drill site and submerged to drilling position by flooding the lower hull until it rests on the sea floor, with the upper deck above the water surface. Its submersibles are capable of drilling to a depth of 25,000 feet in water depths up to 70 feet.

10 Best Energy Stocks To Invest In 2014: S&P 500/Barra Value(SU)

Suncor Energy Inc., together with its subsidiaries, operates as an integrated energy company. The company involves in the development of petroleum resource basins in Canada's Athabasca oil sands; acquisition, exploration, development, production, and marketing of crude oil and natural gas in Canada and internationally; transportation and refining of crude oil; and marketing of petroleum and petrochemical products primarily in Canada. Its Oil Sands segment produces bitumen recovered from oil sands through mining and in-situ technology, and upgrades it into refinery feedstock, diesel fuel, and by-products. This segment?s products include gasoline and distillates. The company?s Natural Gas segment acquires, explores, develops, and produces natural gas, natural gas liquids, oil, and by-products from reserves located primarily in western Canada, the Northwest Territories, Alaska, and the Arctic Islands. Its International and Offshore segment engages in the exploration and pro duction of oil and gas in offshore Newfoundland and Labrador, in the North Sea, and in Libya and Syria. The company?s Refining and Marketing segment refines crude oil at Suncor's refineries in Edmonton, Alberta; Montreal, Quebec; and Sarnia, Ontario in Canada, as well as in Commerce City, Colorado into a range of petroleum and petrochemical products for sale to retail, commercial, and industrial customers. It also transports crude oil through pipelines in eastern and western Canada, as well as through wholly-owned pipelines in Wyoming and Colorado; and produces specialty lubricants and waxes. In addition, this segment operates retail sites in Canada under the Petro-Canada brand; and in Colorado under Phillips 66 and Shell brands. Suncor Energy Inc. also engages in third-party energy trading activities. The company was formerly known as Suncor Inc. and changed its name to Suncor Energy Inc. in April 1997. Suncor Energy Inc. was founded in 1953 and is headquartered in Calgary , Canada.

Advisors' Opinion:
  • [By Lowell]

    Suncor produces conventional and unconventional oil and owns the PetroCanada and Sunoco brands in Canada.  It recently successfully completed the acquisition and integration of the old Petro Canada – and now manages all of Petro Canada’s assets.  It took some time for the markets to react favorably to the integration, but Suncor is finally back in the game.  The shares have already run up a good 20% over the past six months.  Expect them to continue to do so if oil prices climb into the high nineties.  Trust me, you don’t want to be caught in the cold when this train takes off again.

  • [By Stephen]

    Suncor Energy (SU, $26.61). Largest energy producer in Canada's oil sands has very good cost structure, production upside and is cheap vs. earnings.

  • [By Sam Collins]

    The recent merger with Petro-Canada made Suncor Energy (NYSE: SU) one of Canada’s largest oil and gas producers. It is focused on Alberta’s vast Athabasca oil sands, making it independent of operations outside of North America.

    Compared with other international oil companies, SU is not only safe from problems in the Middle East, but its profit margins increase greatly when oil rises above $80 per barrel, making it a hedge against rising prices due to Middle East tensions.?

    Technically, SU broke from a saucer formation on Friday, with a long-term target of $50 and a trading target of $45.?

Best Stocks To Buy Right Now: Chevron Corporation(CVX)

Chevron Corporation, through its subsidiaries, engages in petroleum, chemicals, mining, power generation, and energy operations worldwide. It operates in two segments, Upstream and Downstream. The Upstream segment involves in the exploration, development, and production of crude oil and natural gas; processing, liquefaction, transportation, and regasification associated with liquefied natural gas; transportation of crude oil through pipelines; and transportation, storage, and marketing of natural gas, as well as holds interest in a gas-to-liquids project. The Downstream segment engages in the refining of crude oil into petroleum products; marketing of crude oil and refined products primarily under the Chevron, Texaco, and Caltex brand names; transportation of crude oil and refined products by pipeline, marine vessel, motor equipment, and rail car; and manufacture and marketing of commodity petrochemicals, plastics for industrial uses, and fuel and lubricant additives. It a lso produces and markets coal and molybdenum; and holds interests in 13 power assets with a total operating capacity of approximately 3,100 megawatts, as well as involves in cash management and debt financing activities, insurance operations, real estate activities, energy services, and alternative fuels and technology business. Chevron Corporation has a joint venture agreement with China National Petroleum Corporation. The company was formerly known as ChevronTexaco Corp. and changed its name to Chevron Corporation in May 2005. Chevron Corporation was founded in 1879 and is based in San Ramon, California.

Advisors' Opinion:
  • [By Hawkinvest]

    Chevron Corporation (CVX) is a leading integrated energy company with exposure to oil, natural gas, refining, etc. This could be one of the most undervalued stocks in the market. Chevron pays a dividend that beats many other stock and bond yields, plus it has a below market price to earnings ratio of about 8 times earnings. The average stock in the S&P 500 Index currently trades for over 12 times earnings. If oil prices continue to rise, the already healthy profit estimates for Chevron might be too low. With oil prices showing strength this early in the season, Chevron could be poised to beat earnings in the coming months. However, the stock is trading at the upper end of the recent trading range. Recently, it has been possible to buy this stock at about $102 per share, so waiting for dips could pay off.

    Here are some key points for CVX:

    Current share price: $104.25

    The 52 week range is $85.63 to $110.01

    Earnings estimates for 2012: $12.66 per share

    Earnings estimates for 2013: $13.20 per share

    Annual dividend: $3.42 per share which yields 3.1%

10 Best Energy Stocks To Invest In 2014: First Solar Inc.(FSLR)

First Solar, Inc. manufactures and sells solar modules using a thin-film semiconductor technology. It also designs, constructs, and sells photovoltaic solar power systems. The company?s solar modules employ a thin layer of semiconductor material to convert sunlight into electricity. Its integrated solar power systems activities include the project development; engineering, procurement, and construction services; operating and maintenance services; and project finance. The company sells solar modules to project developers, system integrators, and operators of renewable energy projects; and solar power systems to investor owned utilities, independent power developers and producers, and commercial and industrial companies, as well as other system owners. It operates in the United States, Germany, France, Canada, and internationally. The company was formerly known as First Solar Holdings, Inc. and changed its name to First Solar, Inc. in 2006. First Solar was founded in 1999 a nd is headquartered in Tempe, Arizona.

Advisors' Opinion:
  • [By Hawkinvest]

    First Solar (FSLR) is a U.S.-based solar company that was once the darling of Wall Street. A couple of years ago, this stock traded for over $250 per share, but due to challenging business conditions and a change in investor psychology, the stock now trades below book value, which is $46.61 per share. There is still plenty to like with this company. It has a technological edge over other companies, a strong balance sheet, and it is one of the few solar firms that have been able to remain solidly profitable during an extremely difficult period for the industry.

    First Solar expects revenues to range from $3.7 to $4.0 billion, and earnings to come in somewhere between $3.75 to $4.25 per share for 2012. The company is expected to report fourth quarter earnings on February 28, 2012, so it could make sense to wait for a financial update before making a large investment. However, the stock is trading below book value, and for less than 10 times earnings. Investors who like buying low should consider this industry leader, while the stock is still trading at depressed levels.

10 Best Energy Stocks To Invest In 2014: Vantage Drilling Company(VTG)

Vantage Drilling Company, through its subsidiaries, provides offshore contract drilling services to oil and natural gas companies in the United States and internationally. The company offers drilling units, related equipment, and work crews under contract to drill oil and natural gas wells; construction supervision services; and operates and manages drilling units owned by others. Its customers primarily include multinational oil and natural gas companies, government owned oil and natural gas companies, and independent oil and natural gas producers. The company owns and manages four jackup rigs and three drillships. Vantage Drilling Company was founded in 2007 and is based in Houston, Texas.

Advisors' Opinion:
  • [By Fabian]

    Vantage Drilling Company (AMEX:VTG): This equity had 10,232,975 shares sold short as of Aug 31st, as compared to 9,547,345 on Aug 15th, which represents a change of 685,630 shares, or 7.2%. Days to cover for this company is 6 and average daily trading volume is 1,640,644. About the equity: Vantage Drilling Company offers offshore oil and natural gas well drilling services.

10 Best Energy Stocks To Invest In 2014: Worthington Energy Inc (WGAS)

Worthington Energy, Inc. (Worthington), formerly Paxton Energy, Inc., incorporated July 30, 2004, is an oil and gas exploration and production company with assets in Texas and in the Gulf of Mexico. Worthington�� assets in Texas consist of a minority working interest in limited production and drilling prospects in the Cooke Ranch area of La Salle County, Texas, and Jefferson County, Texas, all operated by Bayshore Exploration L.L.C. (Bayshore). The Company�� assets in the Gulf of Mexico consist of a leasehold working interests in certain oil and gas leases located offshore from Louisiana, upon which no drilling or production has commenced as of December 31, 2011, and a 10.35% interest in the recently drilled I-1 well and a 2% royalty interest in 14,400 acres in the Mustang Island Tract 818. On March 27, 2012, it acquired certain assets from Black Cat Exploration & Production, LLC.

In Texas, the Company has working interests ranging from 4% to 31.75% (net revenue interests ranging from 3% to 23.8125%) in the various wells. In the Gulf of Mexico it has a 70% leasehold working interest, with a net revenue interest of 51.975%, of certain oil and gas leases in the Vermillion 179 tract and 10.35% interest in the recently drilled I-1 well and a 2% royalty interest in 14,400 acres in the Mustang Island Tract 818. As of December 31, 2011, it had one producing well that generated average total monthly net revenue.

The Mustang Island 818-L Field, located in the Kleberg County waters of the Gulf of Mexico, is a field re-habilitation project targeting bypassed or only partially produced gas-condensate. Total production from the wells within the seismic coverage was 125.6 billion cubic feet. In January 2011, the Hercules Offshore 205 jack-up rig was contracted to re-enter the I-Well on the Mustang License Area. The oil and gas leases are located in the VM 179, which is in the shallow waters of the Gulf of Mexico offshore from Louisiana. VM 179 is at 85 inches water depth approximately ! 46 miles offshore Louisiana in the Gulf of Mexico.

10 Best Energy Stocks To Invest In 2014: GMX Resources Inc.(GMXR)

GMX Resources Inc. operates as an independent oil and natural gas exploration and production company primarily in the United States. It has interests in two oil shale resources, including the Williston Basin that targets the Bakken/Sanish-Three Forks in North Dakota/Montana; and the DJ Basin, which targets the Niobrara Formation in Wyoming. The company also holds interests in natural gas resources comprising the Haynesville/Bossier Formation and the Cotton Valley Sand Formation in the East Texas Basin. As of December 31, 2010, it had proved reserves of 319.3 billion cubic feet of natural gas equivalent; and 264 net producing wells in east Texas. The company was founded in 1998 and is headquartered in Oklahoma City, Oklahoma.

Advisors' Opinion:
  • [By Putnam]

    GMX Resources Inc. is a pure play independent oil and natural gas exploration and production company. The Company is focused on the development of Haynesville/Bossier Shale and Cotton Valley Sands in the Sabine Uplift of the Carthage, North Field of Harrison and Panola counties of East Texas. Its EPS forecast for the current year is 0.19 and next year is 0.55. According to consensus estimates, its topline is expected to grow 43.52% current year and 41.52% next year. It is trading at a forward P/E of 11.04. Out of 15 analysts covering the company, six are positive and have buy recommendations, two have sell ratings and seven have hold ratings.

10 Best Energy Stocks To Invest In 2014: Atlas Resource Partners LP (ARP)

Atlas Resource Partners, L.P. (Atlas Resource Partners), incorporated on October 13, 2011, is an independent developer and producer of natural gas, crude oil and natural gas liquids (NGL), with operations in basins across the United States. The Company is a sponsor and manager of investment partnerships, in which it co-invests, to finance a portion of its natural gas and oil production activities. During the year ended December 31, 2012, its average daily net production was approximately 77.2 million cubic feet equivalent. On December 20, 2012, it completed the acquisition of DTE Gas Resources, LLC from DTE Energy Company. On September 24, 2012, the Company acquired Equal Energy, Ltd.�� (Equal) remaining 50% interest in approximately 8,500 net undeveloped acres included in the joint venture. On July 26, 2012, it completed the acquisition of Titan Operating, L.L.C. On April 30, 2012, it acquired certain oil and natural gas assets from Carrizo Oil & Gas, Inc. In April 2012, it acquired a 50% interest in approximately 14,500 net undeveloped acres in the oil and NGL area of the Mississippi Lime play in northwestern Oklahoma.

Through December 31, 2012, the Company owned production positions in the areas of the Barnett Shale and Marble Falls play in the Fort Worth Basin in northern Texas; the Appalachia basin, including the Marcellus Shale and the Utica Shale; the Mississippi Lime and Hunton plays in northwestern Oklahoma, and the Chattanooga Shale in northeastern Tennessee, the Niobrara Shale in northeastern Colorado, the New Albany Shale in southwestern Indiana and the Antrim Shale in Michigan. During 2012, the Company had ownership interests in over 525 wells in the Barnett Shale and Marble Falls play and 569.3 billion cubic feet equivalent of total proved reserves with average daily production of 31.9 million cubic feet equivalent. During 2012, the Company had ownership interests in over 10,200 wells in the Appalachian basin, including approximately 270 wells in the Marcellus Shale and 1! 12.6 billion cubic feet equivalent of total proved reserves with average daily production of 35.6 million cubic feet equivalent. During 2012, it owned 21 billion cubic feet equivalent of total proved reserves with average daily production of 1.9 million cubic feet equivalent in the Mississippi Lime and Hunton plays in northwestern Oklahoma. During 2012, the Company had average daily production of 7.8 million cubic feet equivalent in the Chattanooga Shale in northeastern Tennessee, the Niobrara Shale in northeastern Colorado, the New Albany Shale in southwestern Indiana, and the Antrim Shale in Michigan.

10 Best Energy Stocks To Invest In 2014: Hanwha SolarOne Co. Ltd.(HSOL)

Hanwha Solarone Co., Ltd., an investment holding company, engages in the manufacture and sale of silicon ingots, silicon wafers, and PV cells and modules. The company also offers mono crystalline and multi crystalline silicon cells; and provides PV module processing services. It sells its products to solar power system integrators and distributors primarily in Germany, Italy, Australia, the United States, the Czech Republic, Spain, and China. The company was formerly known as Solarfun Power Holdings Co., Ltd. and changed its name to Hanwha SolarOne Co., Ltd. in December 2010. Hanwha Solarone Co., Ltd. was founded in 2004 and is based in Qidong, the People?s Republic of China.

Advisors' Opinion:
  • [By Sherry Jim]

    Hanwha SolarOne Co., Ltd.(NASDAQ: HSOL) closing price in the stock market Tuesday, Jan. 3, was $1.06. HSOL is trading -15.30% below its 50 day moving average and -67.04% below its 200 day moving average. HSOL is -89.16% below its 52-week high of $9.78 and 16.48% above its 52-week low of $0.99. HSOL‘s PE ratio is 1.64 and its market cap is $89.18M.

    Hanwha SolarOne Co., Ltd. is an investment holding company which engages in the manufacture and sale of silicon ingots, silicon wafers, and PV cells and modules. HSOL also offers mono crystalline and multi crystalline silicon cells; and provides PV module processing services.

10 Best Energy Stocks To Invest In 2014: Ecopetrol S.A.(EC)

Ecopetrol S.A. operates as an integrated oil company in Colombia, Peru, Brazil, and the U.S. Gulf Coast. The company engages in the exploration, development, and production of crude oil and natural gas. As of December 31, 2010, its proved reserves of crude oil and natural gas consisted of 1,714.0 million barrels of oil equivalent. The company also transports crude oil, motor fuels, fuel oil, and other refined products, as well as mixture of diesel and palm oil. It owns transportation network consisting of 3,003 kilometers of crude oil pipeline directly, as well as an additional 2,178 kilometers of crude oil pipeline with its business partners; and 3,017 kilometers of multi-purpose pipelines for transportation of refined products from refinery to wholesale distribution points. As of the above date, Ecopetrol S.A. owned 58 stations with a nominal storage capacity of 19 million barrels of crude oil and 6 million barrels of refined products. In addition, the company owns and o perates refineries that produce a range of refined products, including gasoline, diesel, kerosene, jet fuel, aviation fuel, liquefied petroleum gas, sulfur, heavy fuel oils, motor fuels, and petrochemicals, including paraffin waxes, lube base oils, low-density polyethylene, aromatics, asphalts, alkylates, cyclohexane and aliphatic solvents, and refinery grade propylene, as well as provides industrial services to third parties. Further, it markets various refined and feed stock products, including regular and high octane gasoline, diesel fuel, jet fuel, natural gas, and petrochemical products. The company was formerly known as Empresa Colombiana de Petroleos and changed its name to Ecopetrol S.A. in June 2003. Ecopetrol S.A. was founded in 1948 and is based in Bogota, Colombia.

Advisors' Opinion:
  • [By Dave Friedman]

    Institutional investors bought 8,091,790 shares and sold 1,263,000 shares, for a net of 6,828,790 shares. This net represents 0.02% of common shares outstanding. The number of shares outstanding is 40,472,512,590. The shares recently traded at $40.59 and the company’s market capitalization is $82,710,853,874.47. About the company: Ecopetrol SA is an integrated oil company. The Company owns interests in oil producing fields in the central area, south, west and north of Colombia as well as refineries, ports for fuel exports and imports on both coasts and the transportation network of pipelines and polyducts throughout the Colombian territory.

Sunday, July 28, 2013

Financial Masochism: Why Bank of America Can Have Its Way with You

What do you think would happen to a restaurant if it had horrible customer service and served mediocre food? Or a hair dresser who butchered your new 'do and then proceeded to re-run your credit card for an additional $10 tip?

I think we can all agree that they'd go out of business. At the very least, one wouldn't expect them to flourish.

Yet that's exactly what's happening with banks.

No surprise: People don't like banks
According to a recent Gallup poll, only 26% of people have either "quite a lot" or a "great deal" of confidence in their banks. In fact, Congress is one of the few institutions that scores lower in this regard, said financial bureau chief Matt Koppenheffer, author of our exclusive free report about the market's nine best dividend stocks.

And the nation's biggest banks are the worst offenders. In a J.D. Power & Associates survey of customer satisfaction from earlier this year, Bank of America (NYSE: BAC  ) and Wells Fargo (NYSE: WFC  ) ranked at or near the bottom of the industry in every geographical regional examined. And they were the absolute worst performers in this year's survey of bank reputations by industry publication American Banker.

At the same time, both of these banks, as well as the nation's largest lender by assets, JPMorgan Chase (NYSE: JPM  ) , are racking up record quarterly profits. In the three months ended June 30, for instance, they earned a collective $12 billion.

What gives? If customers are so unhappy, why aren't they fleeing in droves?

The banks have you right where they want you
The answer it turns out has to do with switching costs -- that is, the amount of money and time it would cost a customer to switch from one bank to another.

Ever wonder why banks are such proponents of direct deposit and automatic bill pay? The reason is that it makes it harder for their customers to abandon them.

This point was driven home to me last week in a conversation with a New York-based banking consultant. According to him, the owners of between 40% and 50% of checking accounts at the nation's largest banks live paycheck to paycheck.

Imagine how delicate of a maneuver it would be for these people to switch banks without incurring an overdraft or insufficient-funds fee. If the direct deposit was transferred too early relative to the automatic bill pays, then the old account would be in jeopardy of a negative balance. If it was too late, then the new account would be.

Meanwhile, on the other end of the spectrum, larger account holders have little to no incentive to change banks, as they're treated comparatively well. I discussed this last weekend with respect to Bank of America, which has prioritized deepening its relationship with its 8 million "preferred" customers while at the same time cutting the costs associated with servicing its 40 million "retail" customers.

Don't worry, be happy
The net result is that, at least insofar as account retention is concerned, there's really no such thing as reputational risk for the nation's biggest banks.

Needless to say, this is great news for bank investors, as the negative press about the big banks' various transgressions should ultimately make little to no difference with respect to their success and valuations. But also needless to say, it isn't quite as good for the customers that unwittingly find themselves on the other end of it.

Dividend stocks can make you rich. It's as simple as that. While they don't garner the notability of high-flying growth stocks, they're also less likely to crash and burn. And over the long term, the compounding effect of the quarterly payouts, as well as their growth, adds up faster than most investors imagine. With this in mind, our analysts sat down to identify the absolute best of the best when it comes to rock-solid dividend stocks, drawing up a list in this free report of the only nine that fit the bill. To discover the identities of these companies before the rest of the market catches on, you can download this valuable free report by simply clicking here now.

Saturday, July 27, 2013

Phillips 66 Partners Units Surge on IPO

A new oil partnership with a storied name has made a splash on its market debut. Phillips 66 Partners (NYSE: PSXP  ) began trading on the New York Stock Exchange this morning and at the moment is trading at $29.87, nearly 30% above its IPO price of $23 per share.

All told, just over 16.4 million common units in the partnership were released in the IPO. After the issue closes, the public will collectively hold a nearly 23% limited partner interest in the enterprise, or as much as 26% if the offering's underwriters fully exercise their option to purchase 2.46 million additional units.

The partnership was brought to market by book-running managers JPMorgan Chase unit J.P. Morgan, Bank of America's (NYSE: BAC  ) Merrill Lynch, Credit Suisse (NYSE: CS  ) , Citigroup (NYSE: JPM  ) , Barclays, Morgan Stanley, Royal Bank of Canada's (NYSE: RY  ) RBC Capital Markets, and the securities arm of Deutsche Bank (NYSE: DB  ) .

The company is a limited partnership created earlier this year by downstream oil concern Phillips 66 (NYSE: PSX  ) . In the words of its parent, Partners was formed to "own, operate, develop, and acquire primarily fee-based crude oil, refined petroleum product, and natural gas liquids pipelines and terminals and other transportation and midstream assets." Partners is a spinoff of a spinoff; Phillips 66 was carved out of energy major ConocoPhillips (NYSE: COP  ) and made its market debut in 2012.

Amazon Stock: 2 Major Growth Drivers

Measured by price-to-sales, Amazon.com (NASDAQ: AMZN  ) stock is about four times as expensive as Wal-Mart. Price-to-book? Same thing. The stock is expensive -- there's no way around it. But it carries a premium for good reason. Besides the company's commonly cited massive e-commerce opportunity, Amazon faces two additional opportunities investors shouldn't overlook: Amazon Prime and AmazonFresh.

Amazon Prime
For $79 a year, Amazon members can lock in free two-day shipping on millions of items, plus some free access to instant streaming of thousands of movies and TV shows. Current members are well aware of the service's usefulness. Blogger Jason Calacanis went as far as to say: "There are two types of people in the world: those with Amazon Prime and those without. ... And to be clear, Prime is a cult you will be joining." This might sound like a rash statement to the uninitiated, but current members might not bat an eyelash at this blogger's enthusiasm. 


Source: Amazon.com.

"Once shoppers are in, they're hooked," says Fool contributor Demitrios Kalogeropoulos. It didn't take long for Amazon Prime to gain traction. Just six years after it debuted, in 2010, Bloomberg Businessweek's Brand Stone said that, "Amazon Prime may be the most ingenious and effective customer loyalty program in all of e-commerce, if not retail in general."

Amazon Prime induces higher customer engagement; members spend heavily, doubling the spending of non-members. And the service is addictive; in a 2011 survey by Piper Jaffray, 92% of current Prime members planned to renew their membership.

Morningstar's Hottovy has pegged Amazon's current Prime members at 10 million. He expects that number to grow to a whopping 25 million by 2017.

AmazonFresh
With just one move, Amazon sent its addressable market skyrocketing. The introduction of Amazon Fresh, an online grocery business that promises same-day and early-morning delivery on orders of $35 or more, introduces Amazon to an $850 billion market (based on personal consumption expenditures data from the Bureau of Economic Analysis) -- and that's just in the U.S.


Source: Amazon.com.

Amazon seems to be working hard to make good on plans to expand its grocery business. Earlier this month, Reuters reported that Amazon would soon introduce AmazonFresh to Los Angeles and the San Francisco Bay area. And now, the AmazonFresh website is reporting that AmazonFresh has become available in the Los Angeles area.

Piggybacking on the success of Amazon Prime, Amazon is rolling out the Fresh service as a membership, costing $299. This includes the Amazon Prime benefits.

Disruption at its best
Amazon stock may be expensive, but disruptive moves like AmazonFresh and continued adoption of Amazon Prime could drive considerable growth for years to come. Despite the stock's premium, the majority of Motley Fool Caps all-star players believe Amazon stock will continue to outperform.

The best investing approach is to choose great companies and stick with them for the long term. The Motley Fool's free report, "3 Stocks That Will Help You Retire Rich," names stocks that could help you build long-term wealth and retire well, along with some winning wealth-building strategies that every investor should be aware of. Click here now to keep reading.

Friday, July 26, 2013

Why ONEOK's Shares Popped

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of natural gas company ONEOK (NYSE: OKE  ) jumped 21% today after announcing a spin-off.

So what: The company is spinning off its natural gas distribution business in an effort to build more focused companies. Investors will maintain their shares in ONEOK and get a stake in the new company through a stock dividend. The exact dividend distribution has not yet been determined and management expects to close the deal in the first quarter of next year.  

Now what: The move is expected to allow ONEOK to pay a higher payout after the deal is complete, which may attract dividend investors. This is essentially a move to unlock value in the stock, which has traded to a discount to rivals. This doesn't change the fundamental investment thesis but, for investors looking into either the pipeline or the utility side, it gives the option for a focused investment instead of the diverse company ONEOK had become.  

Record natural gas production is revolutionizing the United States' energy position. Finding the right stocks with upside across the country is key for investors looking for exposure. For this reason, the Motley Fool is offering a comprehensive look at three energy companies set to soar during this transformation in the energy industry. To find out which three companies are spreading their wings, check out the special free report, "3 Stocks for the American Energy Bonanza". Don't miss out on this timely opportunity; click here to access your report -- it's absolutely free. 

Thursday, July 25, 2013

Electronic Arts Is Ready for Battle

Electronic Arts (NASDAQ: EA  ) is all warmed up. The game publisher just announced earnings results, and they were better than expected almost across the board.

Shares surged on the news yesterday despite the fact that the company tried to temper expectations. EA flat-out told investors that the first quarter was just a warm-up, and it is the next three quarters that really matter. However, the Street seemed happy enough to celebrate the quarter that just ended.

There were some good reasons to cheer these results. EA beat expectations on both the top and bottom lines. And that's even with the lack of any big new releases to move. The company's two major sellers, Battlefield 3 and FIFA 13, have been on the market for 20 and 10 months, respectively. But EA managed to squeeze a lot of revenue from the titles, helping it log $495 million in sales versus the $450 million it had guided to. Earnings also came in much higher than expected, as EA booked a $0.40-per-share loss instead of the $0.62 loss it had expected.

Digital sales were another bright spot. EA got 76% of its revenue from downloads in the quarter, on the strength of content offerings for its blockbuster titles as well as mobile hits like The Simpsons: Tapped Out.

As for what's ahead, EA couldn't resist crowing about its opportunities -- particularly in Asia. The company will be bringing FIFA Online 3 to China soon. Or, as management put it, "the world's biggest online publisher is bringing the world's biggest sports game, to the world's biggest market."

Still, 2013 only gets harder from here for EA. The quarter that just ended represents a tiny 12% of the company's forecast revenue for the full year. To get the rest of that goal, EA and its Battlefield franchise will have to go through Activision Blizzard (NASDAQ: ATVI  ) and its latest Call of Duty installment. That franchise has been worth more than $8 billion in sales for Activision. The company won't let its cash cow go down without a fight. In fact, Activision has plans for a huge marketing push behind the launch of Call of Duty: Ghosts in the fall, so there are at least a few rounds left in this game.

Once you're done playing video games, you might want to turn on the TV. The television landscape is changing quickly, with new entrants like Netflix and Amazon.com disrupting traditional networks. The Motley Fool's new free report "Who Will Own the Future of Television?" details the risks and opportunities in TV. Click here to read the full report!

Wednesday, July 24, 2013

Why Americans Became More Responsible About Spending Money

Alan Greenspan stood before Congress a decade ago and complained that "Children, dogs, cats and moose are getting credit cards." That's how America used to work. You didn't need a job or an income to spend money. If you had a will to spend, someone -- usually a bank -- found a way.

But things have changed. According to Bloomberg, the correlation between Americans' wages and their spending is the highest it's been in almost half a century. "This means consumers are keeping their spending more in line with their incomes," Bloomberg writes. Congratulations!

But there's another point here: The amount of money Americans are saving is still puny. The personal savings rate has averaged 3.7% over the last year, compared with a long-term average of 7% and a 30-year average of more than 5%.

Can we really say Americans are being responsible about their spending when they're saving so little money?

Yes, actually.

Americans may be saving less money today than in the past because we have a larger safety net. And I'm not talking about unemployment insurance or Social Security. I'm talking about bankruptcy.

Take a look at this:

Source: Federal Reserve.

Bankruptcies per 1,000 people have utterly exploded in the last 50 years. That's partly because we have more debt today than we did back then, but bankruptcies have also increased because:

Laws have loosened. Personal bankruptcy used to spell nothing less than the complete ruin of someone's financial well-being. The Chandler Act of 1938, and to a larger extent the Bankruptcy Reform Act of 1978, expanded bankruptcy laws in favor of debtors, making bankruptcy filings more appealing. Attitudes about bankruptcy changed. As law professor Rafael Efrat explains in this paper, the stigma behind filing for bankruptcy shifted noticeably around the 1960s. "By shifting attribution of fault away from the financially troubled individual, American society may have developed a more positive attitude toward the individual that was manifested by less anger and more sympathy with the plight of the individual," he writes.

Americans don't need to save as much as they did in the past because the escape hatch of bankruptcy is now more user-friendly and accessible. Occupy Wall Street laid blame on the credit practices of consumer-centric banks Bank of America (NYSE: BAC  ) and JPMorgan Chase (NYSE: JPM  ) , but credit is a two-way street: Banks supply credit products that consumers demand. And consumers may demand those credit products more today than they did in the past because the downside consequences have been mitigated through changes in the personal bankruptcy process.

What do you think: Is this moral hazard? Are we encouraging risky behavior or providing a vital safety net for consumers? Let me know in the comment section below. 

Tuesday, July 23, 2013

Lockheed Martin Beats Estimates, Raises Guidance; Stock Jumps

Another quarterly report, another beat for aerospace giant Lockheed Martin (NYSE: LMT  ) .

After financial results were released this morning, investors bid shares at least 2% higher as Wall Street's fears over harsh defense-spending cutbacks seemed to fly out the window. Lockheed has outperformed the S&P 500 Index so far in 2013, over the last year, and the last three-year period. 

While sales actually slipped 4% year-over-year for the quarter ended June 30, cost efficiencies enabled the company to boost diluted earnings per share, or EPS, 11% as Lockheed bought back 4.5 million shares for a total of $465 million. Sales, at $11.4 billion, came in far ahead of the $11.1 billion some analysts were expecting. 

Though sales fell from the same quarter last year, the Missiles and Fire Control segment continued to grow, seeing revenues just over $2 billion in the quarter on greater demand from missile defense programs. Lockheed Martin also gave shareholders something to look forward to, boosting diluted EPS estimates for the fiscal year from the $8.80-$9.10 range to the $9.20-$9.50 range. The stock's annual dividend currently sits at 4%.

Lockheed also reported that it got a $75 million profit boost after settling "contract cost matters" including the canceled program to build a new helicopter for the U.S. president. And deliveries of the new F-35 Joint Strike Fighter are ramping up. Lockheed handed over 12 in the most recent quarter, up from three a year earlier.

-- Material from The Associated Press was used in this report.

link

Your iPad Is Begging to Do So Much More

Second-screen technology was one of the big topics at the recent Cable Show in Washington, D.C. Motley Fool analyst Rex Moore was at the event and chatted with Akamai's (NASDAQ: AKAM  ) Kris Alexander about how so-called "couch commerce" is opening up new revenue streams for retailers, advertisers, and programmers.

In this segment, Kris talks about the explosion of connected devices such as Apple's (NASDAQ: AAPL  ) iPads and Google's (NASDAQ: GOOG  ) Android tablets, and what it means for second-screen commerce.

Looking for the top dog
It's incredible to think just how much of our digital and technological lives are almost entirely shaped and molded by just a handful of companies. Find out "Who Will Win the War Between the 5 Biggest Tech Stocks" in The Motley Fool's latest free report, which details the knock-down, drag-out battle being waged among the five kings of tech. Click here to keep reading.

Monday, July 22, 2013

10 Best Low Price Stocks To Buy Right Now

McDonald's (NYSE: MCD  ) is scheduled to release its quarterly earnings report on Monday, and its stock has climbed to the $100-per-share mark in approaching all-time record-high levels. But disappointing results for McDonald's earnings in past quarters have investors worried that the company might not deliver the fundamental strength it needs to match up to its stock's performance.

McDonald's has been one of the most resilient members of the Dow Jones Industrials (DJINDICES: ^DJI  ) , with notable gains during the bear market year of 2008 that proved its ability to weather recessions with its focus on low price points. But lately, its growth forays have run into some resistance. Let's take an early look at what's been happening with McDonald's over the past quarter, and what we're likely to see in its quarterly report.

10 Best Low Price Stocks To Buy Right Now: The Charles Schwab Corporation(SCHW)

The Charles Schwab Corporation, through its subsidiaries, provides securities brokerage, banking, and related financial services to individuals and institutional clients. It offers various brokerage products and services comprising brokerage accounts with check-writing features, debit card, and billpay; individual retirement accounts; retirement plans for small to large businesses; college savings accounts; designated brokerage accounts; equity incentive plan accounts; and margin loans, as well as access to fixed income securities, equity and debt offerings, options, and futures. The company also provides various banking products and services, including checking accounts linked to brokerage accounts, savings accounts, certificates of deposit, demand deposit accounts, first mortgages, home equity lines of credit, and personal loans collateralized by securities. In addition, it offers trust custody services, personal trust reporting services, and administrative trustee servi ces; advisory services comprising separately managed accounts, customized personal advice for tailored portfolios, and planning and portfolio management; and third-party mutual funds, such as no-load mutual funds, proprietary mutual funds, and other third-party mutual funds, as well as mutual fund trading and clearing services to broker dealers. Further, the company offers third-party and proprietary exchange-traded funds; research, analytic tools, performance reports, market analysis, and educational materials; custodial, trading, technology, practice management, trust asset, and other support services to independent investment advisors; and retirement plan recordkeeping and related services, retirement plan trust and custody services, specialty brokerage services, and mutual fund clearing services. It operates primarily in the United States, the United Kingdom, and Hong Kong. The company was founded in 1971 and is headquartered in San Francisco, California.

Advisors' Opinion:
  • [By Derek Hoffman]

    Charles Schwab Corp. (NYSE:SCHW) delivered a profit and met Wall Street’s expectations, AND beat the revenue expectation. Net income increased 15.95% to $189 million (15 cents per diluted share) in the quarter versus a net gain of $163 million in the year-earlier quarter. Revenue rose 4.45% to $1.22 billion from the year-earlier quarter.

    Charles Schwab Corp. reported adjusted net income of 15 cents per share. By that measure, the company met the mean analyst estimate of $0.15. It beat the average revenue estimate of $1.21 billion.

10 Best Low Price Stocks To Buy Right Now: Omega Protein Corporation(OME)

Omega Protein Corporation, a nutritional ingredient company, engages in the processing, marketing, and distribution of fish meal, oil, and soluble products. The company produces and sells various protein and oil products derived from menhaden, a herring-like species of fish found in the U.S. coastal waters of the Atlantic Ocean and Gulf of Mexico. Its fish meal products include the Special Select, a premium grade fish meal that is targeted for monogastrics, including baby pigs, pets, shrimps, and fish; SeaLac, a premium grade fish meal that is targeted for the ruminant industry; and Fair Average Quality Meal, a commodity grade fish meal that is used in protein blends for catfish, pets, and other animals. Omega Protein Corporation?s fish oil products comprise crude unrefined fish oil, refined fish oil, and food grade oils. Its oil products are used in food production, feed production, certain industrial applications, and dietary supplements. The company?s fish solubles in clude Neptune fish concentrate that is used as the attractant in commercial baits, as well as in shrimp and finfish diets; OmegaGrow, a liquid soil or foliar-applied fertilizer for plant nutrition; and OmegaGrow Plus, a liquid foliar-applied fertilizer for plant nutrition that also helps to control insect and fungus problems. The company sells its products in the United States Mexico, Europe, Canada, Asia, and South and Central America. Omega Protein Corporation was founded in 1998 and is based in Houston, Texas.

Top Stocks To Buy For 2014: Marsh & McLennan Companies Inc. (MMC)

Marsh & McLennan Companies, Inc., a professional services company, provides advice and solutions in the areas of risk, strategy, and human capital. It operates in two segments, Risk and Insurance Services, and Consulting. The Risk and Insurance Services segment provides risk management and insurance broking, reinsurance broking, and insurance program management services for businesses, public entities, insurance companies, associations, professional services organizations, and private clients. The Consulting segment offers advice and services to the managements of organizations in the area of human resource consulting, comprising retirement and investments, health and benefits, outsourcing and talent; and strategy and risk management consulting, such as management, economic, and brand consulting. The company also provides investment consulting services for endowments and foundations in the United States; health and benefit recordkeeping, and employee enrollment technology; human resource knowledge, data, and solutions for professionals in various industries; and Medicaid policy consulting services. It principally serves customers in the United States, the United Kingdom, the Asia Pacific, and Continental Europe. Marsh & McLennan Companies, Inc. was founded in 1871 and is headquartered in New York, New York.

10 Best Low Price Stocks To Buy Right Now: Telecom Italia S.P.A.(TI)

Telecom Italia S.p.A., together with its subsidiaries, provides fixed-line and mobile telecommunications, Internet, and media services. The company also operates in office and system solutions. Its portfolio ranges from consumer-focused convergent communications services to business-oriented advanced ICT solutions. The company?s integrated range of offerings, proprietary platforms, and network architecture leverage the potential of fixed-line and mobile broadband to offer convergent solutions for communication, Web surfing, always-in-touch services, and serve as a gateway to the digital world from the home, the office, and on the move, from fixed-line telephone, cell phone, PC, or TV. Its business portfolio covers various categories of business needs, from freelance professionals to SMEs, corporations, institutions, and public government bodies. The company?s Web offerings combine Italy?s Virgilio portal with Web 2.0 ventures, such as Yalp!, a TV community where users p ublish their own content and create their own TV channels. Its media operations span traditional broadcasting over analogue and digital networks, and mobile broadcasting through TIM/MTV partnership vehicle, MTV Mobile. The company has operations in Italy, Latin America, Germany, Holland, and the Mediterranean basin. As of December 31, 2009, it provided fixed telecommunications services with approximately 16.1 million physical accesses in Italy. The company?s wholesale customer portfolio consisted of approximately 6.2 million accesses for telephone services; and broadband portfolio had approximately 8.7 million accesses in Italy, as well as 30.8 million mobile telephone lines. Telecom Italia was founded in 1908 and is headquartered in Milan, Italy.

10 Best Low Price Stocks To Buy Right Now: Fuwei Films(Holdings)

Fuwei Films (Holdings) Co., Ltd., together with its subsidiaries, engages in the development, manufacture, distribution, and export of plastic film using the biaxially-oriented stretch technique in China. The company offers its biaxially oriented polyethylene terephthalate (BOPET) film under the ?Fuwei Films? brand name primarily for use in flexible packaging, printing, laminating, and aluminum-plating applications, as well as in electrical and electronic uses. Its products include printing base film used in printing and lamination applications; stamping foil base film and transfer base films used for the packaging of luxury items, such as cigarettes and alcohol; metallization film or aluminum plating base film used for vacuum aluminum plating for flexible plastic lamination; high-gloss film used for aesthetically enhanced packaging purposes; and heat-sealable film used for construction, printing, and heat sealable bags making. The company?s products also comprise laser holographic base film used as anti-counterfeit film for food, medicine, cosmetics, cigarettes, and alcohol packaging; dry film used in circuit boards production, and for nameplate and crafts etching; and heat shrinkage film used for special-shaped packaging for alcohol, cans, mineral water, and cleaning products. It exports its products to packaging customers and distributors primarily in Europe, Asia, and North America. The company was founded in 2003 and is headquartered in Weifang, China. As of May 1, 2011, Fuwei Films (Holdings) Co., Ltd. operates as a subsidiary of Weifang State-owned Assets Operation Administration Company.

10 Best Low Price Stocks To Buy Right Now: National Bankshares Inc.(NKSH)

National Bankshares, Inc. operates as the holding company for the National Bank of Blacksburg (NBB), a chartered national bank that provides a range of retail and commercial banking services to individuals, businesses, non-profits, and local governments in Virginia. It offers demand, money market, savings, and certificates of deposit accounts; commercial, agricultural, real estate, home equity, and consumer loans; merchant credit card services, and business and consumer debit and credit cards; letters of credit, night depositories, safe deposit boxes, travelers? checks, utility payment services, and automatic funds transfers; and telephone and Internet banking services. The company operates 24 branch offices and 25 automated teller machines in southwest Virginia. NBB also conducts a general trust business that provides wealth management, and trust and estate services for individual and business customers. In addition, the company, through its subsidiary, National Bankshar es Financial Services, Inc., offers non-deposit investment products and insurance products. The company was founded in 1891 and is headquartered in Blacksburg, Virginia.

10 Best Low Price Stocks To Buy Right Now: Unity Bancorp Inc.(UNTY)

Unity Bancorp, Inc. operates as the holding company for Unity Bank that provides various commercial banking services. It accepts various deposits, which include personal and business checking accounts, time deposits, money market accounts, and regular savings accounts. The company?s loan portfolio comprises commercial, small business administration, consumer, mortgage, home equity, and personal loans. It operated 14 branches in Clinton, Colonia, Edison, Flemington, Highland Park, Linden, Middlesex, North Plainfield, Phillipsburg, Scotch Plains, South Plainfield, Springfield, Union, and Whitehouse, New Jersey; and 2 branches in Forks Township and Easton, Pennsylvania. The company was founded in 1991 and is headquartered in Clinton, New Jersey.

10 Best Low Price Stocks To Buy Right Now: Transcept Pharmaceuticals Inc.(TSPT)

Transcept Pharmaceuticals, Inc., a specialty pharmaceutical company, focuses on the development and commercialization of proprietary products that address therapeutic needs in the field of neuroscience. Its principal product is the Intermezzo, a low dose sublingual formulation of zolpidem as a sleep aid for use in the middle of the night at the time a patient awakens and has difficulty returning to sleep. The company has a collaboration agreement with Purdue Pharmaceutical Products, L.P. for the commercialization of Intermezzo in the United States. It is also developing TO-2061, a low dose ondansetron adjunctive therapy, which is in Phase II study for patients with obsessive-compulsive disorder. The company was founded in 2002 and is based in Point Richmond, California.

Advisors' Opinion:
  • [By Michael J. Ray]

    The next company and their handle go together quite well. TSPT is a specialty pharmaceutical company, focused on the development and commercialization of proprietary products that address therapeutic needs in the field of neuroscience. The principal product is Intermezzo, which is a sleep aid used in the middle of the night at the time a patient awakens and has difficulty returning to sleep.

    The company has not always been a sleeper by any means. As TSPT tried to get the drug past the initial FDA review in July it was met with a rejection letter. In the ensuing fallout the stock price fell over 70% and traded around the $3 range. But in November of 2011 the U.S. Food and Drug Administration (FDA) approved Intermezzo, and TSPT finally cleared their first hurdle for their drug. The stock price currently trades around $8 a share, so it has not recovered from the high of $11 to $12 range that it made in the past.

    In more recent news, TSPT announced in December of 2011 that it had received a $10 million milestone payment from Purdue Pharma L.P. in connection with the listing of Intermezzo in the FDA Orange Book. The milestone payment was made under the terms of the agreement between Purdue and Transcept for the commercialization of Intermezzo in the United States. Purdue has plans to launch Intermezzo in the second quarter of 2012 and to invest approximately $100 million to support sales and marketing during the first year of commercialization.

    So other than being in the “sleep business”, why is this stock’s handle known as the sleeper? The answer to that comes from the actual drug’s intended use. Intermezzo is used for the treatment of insomnia when a middle-of-the-night awakening is followed by difficulty returning to sleep. Middle-of-the-night awakening with difficulty falling back to sleep is a common sleep problem, and this drug is the only prescription sleep aid approved for this type of insomnia. The issue is how to value a new drug like this. Analysts! have very different takes on how the final outcome will play out dealing with demand and sales. Some believe that Intermezzo will run into serious competition from big players and products like Ambien by Sanofi (SNY), Lunesta by Sunovion, Sonata from Pfizer. Others have a different take in that they see the demand for the drug will be high as it can be taken as needed, rather than falling into an automated regiment of taking a daily sleep aid based only on anticipated need.

    Until this debate finally gets settled by actual sales figures and trending analysis, the stock might remain a sleeper for a bit. If the medical community receives the drug with open arm, then demand could be very high which would propel the stock price to new heights. As Purdue starts to invest their money in 2012, it should start increase awareness and hopefully the stock price.

10 Best Low Price Stocks To Buy Right Now: Tribal Group(TRB.L)

Tribal Group plc, through its subsidiaries, provides technology, service delivery, and advisory solutions primarily to the educational sector in the United Kingdom, Australasia, and internationally. The company provides education services to the public sector, including software, managed services, school inspection services, consultancy, benchmarking, e-learning, publishing, and training services. Its technology solutions comprise student management products, asset management products, learning management products, program-based systems, platform-based systems, and bespoke solutions. The company?s service delivery solutions include training and development, school improvement, delivery of major education programs for the government, inspection of schools in the south of England, and management of the early years? professional status. Its advisory services comprise performance improvement, program and project management, strategy and innovation, curriculum support, subjec t excellence, school improvement, benchmarking and consultancy for further and higher education, and workforce development services. The company serves schools, colleges, universities, government agencies, and employers to manage their resources and deliver education services. Tribal Group plc was founded in 1999 and is based in London, the United Kingdom.

10 Best Low Price Stocks To Buy Right Now: GoConnect Ltd (GCN.AX)

GoConnect Limited, a media communications company, primarily engages in the online delivery of interactive audio/video content through its proprietary technologies. Its activities include the development and growth of video infotainment and entertainment portals with own content productions and third party content; music production and artist management; sale of advertising space on its own online properties, third party Websites, and multiple Internet Protocol TV (IPTV) platforms; and provision of technical services on IPTV platforms and online music talent competitions. The company�s properties comprise PLW Entertainment that offers artist development and management; and Undercover.fm, a music news and information online portal. It also provides Uctv.fm, an on-demand IPTV channel that enables users to stream live entertainment on their TVs, PCs, or smart phones; Soundcheck.com.au, an online talent competition portal; and The Business Show, an investor relations solution designed to assist companies communicate with current and prospective investors. GoConnect Limited was founded in 1999 and is based in Melbourne, Australia.

Sunday, July 21, 2013

Apple Beefs Up Maps Some More

Apple's (NASDAQ: AAPL  ) been snapping up start-ups lately, although most of the time investors don't catch wind of it. Last month, Tim Cook said the company had already acquired about nine companies since October, compared to its prior rate of making a purchase every 60 to 75 days.

Like most things, the Mac maker likes to play its acquisitions close to the chest, preferring to buy small companies under the radar in order to avoid disclosure requirements. Sometimes that's unavoidable, though, such as when it bought publicly traded AuthenTec last year.

AllThingsD has now sniffed out an acquisition, reporting that Apple has picked up small Canadian start-up Locationary. The small company aggregates and organizes data on businesses, and its Saturn platform uses "real-time blending technology" that merges data from multiple sources. Its unclear how much Apple may have paid to pick up Locationary.

There's not much else that Apple could do with Locationary other than integrate it into its Maps service. Earlier this year, Apple also acquired WifiSLAM, which uses indoor Wi-Fi signals to improve location accuracy, in another mapping-related purchase.

Locationary CEO and founder Grant Ritchie wrote an article on TechCrunch last year about some of Apple's mapping issues that needed to be addressed. It's possible that Apple took note of the criticism, and put Ritchie up to the task of fixing them for the Cupertino giant.

While Apple Maps has received no shortage of justified criticism, the company isn't giving up quite yet. On the contrary, Apple is investing heavily to beef up the service and is even bringing Maps to its desktop platform to challenge Google Maps further. OS X Mavericks, which will be released later this year, will include a native Maps app that features Apple-esque levels of integration with other devices.

Apple Maps has a long way to go if it ever hopes to be a viable alternative to Google Maps, which continues to be the defining mapping service, but beefing it up with new acquisitions is a step in the right direction.

It's incredible to think just how much of our digital and technological lives are almost entirely shaped and molded by just a handful of companies. Find out "Who Will Win the War Between the 5 Biggest Tech Stocks" in The Motley Fool's latest free report, which details the knock-down, drag-out battle being waged among the five kings of tech. Click here to keep reading.

Saturday, July 20, 2013

Does The Street Have United Online Figured Out?

United Online (Nasdaq: UNTD  ) is expected to report Q1 earnings on April 30. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict United Online's revenues will expand 0.5% and EPS will decrease -23.8%.

The average estimate for revenue is $243.4 million. On the bottom line, the average EPS estimate is $0.16.

Revenue details
Last quarter, United Online booked revenue of $219.0 million. GAAP reported sales were 0.5% higher than the prior-year quarter's $217.9 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, non-GAAP EPS came in at $0.14. GAAP EPS were -$0.15 for Q4 versus $0.14 per share for the prior-year quarter.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 45.8%, 400 basis points worse than the prior-year quarter. Operating margin was 5.8%, 730 basis points worse than the prior-year quarter. Net margin was -5.7%, much worse than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $868.7 million. The average EPS estimate is $0.55.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 254 members out of 281 rating the stock outperform, and 27 members rating it underperform. Among 55 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 46 give United Online a green thumbs-up, and nine give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on United Online is buy, with an average price target of $7.41.

Internet software and services are being consumed in radically different ways, on new and increasingly mobile devices. Is United Online on the right side of the revolution? Check out the changing landscape and meet the company that Motley Fool analysts expect to lead "The Next Trillion-dollar Revolution." Click here for instant access to this free report.

Add United Online to My Watchlist.

Today's 3 Best Stocks

It was yet another day of head-scratching for investors, who had to digest generally positive, but still quite mixed, earnings news, and the chapter 9 bankruptcy filing by Detroit.

It's not every day that you witness one of America's largest cities filing for bankruptcy protection. With potentially more than $20 billion in debt and liabilities, Detroit represents an iconic symbol of the automobile industry. With that in mind, how the government handles Detroit's bankruptcy filing will be closely monitored, as it could sway consumer sentiment higher or lower with regard to their feelings about the economy.

Very (and I do mean very) early on in this earnings season, most companies are topping Wall Street's expectations from an EPS perspective, which has helped push many indexes higher. That wasn't the case for Microsoft (NASDAQ: MSFT  ) , though, which really held back any chance the broad-based S&P 500 (SNPINDEX: ^GSPC  ) had of galloping higher today. Microsoft shares tumbled to their worst one-day sell-off in 13 years on the heels of a $900 million writedown of unsold Surface tablets. This could signal evidence that Microsoft's push away from software and into hardware may be a bust. Being one of the largest companies in the world, it acted as a serious drag on the S&P 500.

But, despite Detroit's bankruptcy filing and Microsoft's flop, the S&P 500 still managed to do the unthinkable, and trudge higher by 2.72 points (0.16%) on the day, to close at 1,692.09, another all-time record high.

Leading the pack today is fresh-Mex casual restaurant Chipotle Mexican Grill (NYSE: CMG  ) , which advanced 8.6% after reporting its second-quarter results. For the quarter, Chipotle saw sales spike 18% to $816.8 million, predominantly due to the addition of 44 new stores. Absent these stores, same-store growth came in at a more modest 5.5%. Profit per share increased to $2.82 from $2.56 in the previous year, exactly matching the Street's expectations. Expansion is certainly being met with open arms, but higher expenses, low single-digit organic growth through the first six months of the year, and a 160-basis point operating margin decrease in the latest quarter, are more than enough reasons to avoid Chipotle here.

Home appliance maker Whirlpool (NYSE: WHR  ) also sent short-sellers through the spin cycle after it gained 8% following its strong second-quarter results, and boosting its full-year profit outlook. For the quarter, revenue jumped 5.3%, to $4.75 billion, as profit soared 53%, to $2.37 per share. Comparatively, the Street expected just $2.32 in EPS on $4.67 billion in sales. What really has investors excited is its EPS boost for the remainder of the year to a range of $9.50-$10 in EPS from its prior EPS forecast of $9.25-$9.75. A rebounding housing market has certainly helped Whirlpool, but I remain a bit concerned about the affect rising U.S. lending rates could have on its domestic business, and would suggest investors remain cautious.

Finally -- and to keep with today's theme of earnings-driven moves -- oil services contractor Schlumberger (NYSE: SLB  ) added 5.4% after topping the Street in the second quarter. Overall, revenue rose 8%, to $11.18 billion, with net income soaring 50%, to $2.1 billion, or $1.57 per share. Excluding one-time gains, Schlumberger topped EPS estimates by $0.05 and slid by revenue projections by $60 million. Schlumberger can thank robust drilling activity overseas in China and Australia, as well as domestically in the Gulf of Mexico, for its market-beating results. To add the icing on the cake for shareholders, Schlumberger also announced a new $10-billion share repurchase program. Investors would be smart to keep their eyes on Schlumberger moving forward.

With oil recresting the $100-per-barrel mark, opportunities abound in the oil sector... if you know where to look. The Motley Fool's latest special report, "3 Stocks for $100 Oil," highlights currently intriguing energy plays that could benefit from rising oil prices. For FREE access to this special report, simply click here now.

Friday, July 19, 2013

Top 10 Value Companies To Own In Right Now

LONDON -- On the face of it, there's little similarity between mobile operator Vodafone (LSE: VOD  ) (NASDAQ: VOD  ) and oil major BP (LSE: BP  ) (NYSE: BP  ) . But they have one significant feature in common: Both have a substantial amount of their value tied up in minority interests over which they do not have control. So what lessons from Vodafone's 45% share of U.S. joint venture Verizon Wireless might there be for BP's new 20% interest in Russian state-owned oil company Rosneft?

Accidental value
Pundits have put the value of Vodafone's stake in Verizon Wireless (VW) at upward of 100 billion pounds, well more than half of the U.K. company's total market cap. It's truly the jewel in Vodafone's crown, though somewhat accidentally. Vodafone acquired a hotchpotch of joint-venture interests during its go-go growth phase under Sir Christopher Gent, and current CEO Vittorio Colao earned plaudits for rationalizing the sprawling empire. His decision to keep the stake in VW might prove to be the best of his tenure.

Top 10 Value Companies To Own In Right Now: Schlumberger N.V.(SLB)

Schlumberger Limited, together with its subsidiaries, supplies technology, integrated project management, and information solutions to the oil and gas exploration and production industries worldwide. The company?s Oilfield Services segment provides exploration and production services; wireline technology that offers open-hole and cased-hole services; supplies engineering support, directional-drilling, measurement-while-drilling, and logging-while-drilling services; and testing services. This segment also offers well services; supplies well completion services and equipment; artificial lift; data and consulting services; geo services; and information solutions, such as consulting, software, information management system, and IT infrastructure services that support oil and gas industry. Its WesternGeco segment provides reservoir imaging, monitoring, and development services; and operates data processing centers and multiclient seismic library. This segment also offers variou s services include 3D and time-lapse (4D) seismic surveys to multi-component surveys for delineating prospects and reservoir management. The company?s M-I SWACO segment supplies drilling fluid systems to improve drilling performance; fluid systems and specialty tools to optimize wellbore productivity; production technology solutions to maximize production rates; and environmental solutions that manages waste volumes generated in drilling and production operations. Its Smith Oilfield segment designs, manufactures, and markets drill bits and borehole enlargement tools; and supplies drilling tools and services, tubular, completion services, and other related downhole solutions. The company?s Distribution segment markets pipes, valves, and fittings, as well as mill, safety, and other maintenance products. This segment also provides warehouse management, vendor integration, and inventory management services. Schlumberger Limited was founded in 1927 and is based in Houston, Texas.

Advisors' Opinion:
  • [By Michael]

    Schlumberger Limited (NYSE: SLB): Cramer also had more than $100,000 invested in SLB. As of Feb. 15, his charitable trust owns 1,300 shares for a total of about $100,724. SLB is also quite popular among hedge funds. At the end of last September, there were 42 hedge funds with SLB positions in their 13F portfolios. Ken Fisher was the most bullish hedge fund manager about SLB -- Fisher Asset Management had nearly $500 million invested in SLB at the end of the third quarter. Jim Simons’ Renaissance Technologies also invested nearly $200 million in this stock.

    Schlumberger has reasonable debt levels, growing net income and revenue, and healthy cash flow from operations. It is relatively expensive compared with its competitors though. SLB has a forward P/E ratio of 13.6. Its expected annual EPS growth rate is 21.82% on the average for the next five years, which means that its P/E ratio for 2014 will be around 9.2. This is quite low compared with the market, but not so versus its peers.

  • [By Brian Stoffel]

    This company has been a pick of both Jordan DiPietro and Bryan White. And both analysts have pointed to the company's opportunity for oil exploration abroad -- which is where much of the demand will soon be coming from as well.

    Bryan points out that three-fourths of the company's revenue comes from abroad, with "Brazil, the Middle East, and Africa [as] key regions where activity is expected to be robust and growing."

    Jordan adds, "[Schlumberger] has an important presence in high-growth regions of the world such as Iraq, Mexico, and Russia, and has the competitive advantage to be able to offer full services, from managing entire oil fields to drilling wells."

Top 10 Value Companies To Own In Right Now: Caterpillar Inc.(CAT)

Caterpillar Inc. manufactures and sells construction and mining equipment, diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives worldwide. It operates through three lines of businesses: Machinery, Engines, and Financial Products. The Machinery business offers construction, mining, and forestry machinery, including track and wheel tractors, track and wheel loaders, pipelayers, motor graders, wheel tractor-scrapers, track and wheel excavators, backhoe loaders, log skidders, log loaders, off-highway trucks, articulated trucks, paving products, skid steer loaders, underground mining equipment, tunnel boring equipment, and related parts. It also manufactures diesel-electric locomotives; and manufactures and services rail-related products and logistics services for other companies. The Engines business provides diesel, heavy fuel, and natural gas reciprocating engines for Caterpillar machinery, electric power generation systems, marine, petrol eum, construction, industrial, agricultural, and other applications. It offers industrial turbines and turbine-related services for oil and gas, and power generation applications. This business also remanufactures Caterpillar engines, machines, and engine components; and offers remanufacturing services for other companies. The Financial Products business provides retail and wholesale financing alternatives for Caterpillar machinery and engines, solar gas turbines, and other equipment and marine vessels, as well as offers loans and various forms of insurance to customers and dealers. It also offers financing for vehicles, power generation facilities, and marine vessels. The company markets its products directly, as well as through its distribution centers, dealers, and distributors. It was formerly known as Caterpillar Tractor Co. and changed its name to Caterpillar Inc. in 1986. Caterpillar Inc. was founded in 1925 and is headquartered in Peoria, Illinois.

Advisors' Opinion:
  • [By Roberto Pedone]

    Caterpillar (CAT) is staging a textbook breakout in May. Shares of heavy equipment maker haven't exactly been kind to investors year-to-date; CAT has barely broken even during a time when the broad market has been in a historic rally. But a textbook breakout should change that.

    CAT started forming an inverse head and shoulders pattern back in early April. The inverse head and shoulders is formed by two swing lows that bottom out around the same level (the shoulders), separated by a lower low called the head; the buy signal comes on the breakout above the pattern's "neckline" level, which was just below $86 for CAT. That puts this stock's upside target right around $92.

    Even though CAT has nearly hit its upside target already (the post-breakout buying has been very quick), the longer-term implication for investors is a break of the downtrend that had been haranguing shares this year. Now, with that downtrend broken, CAT should have more room to move higher. I'd just expect some consolidation first.

  • [By Jim Cramer,TheStreet]

    Caterpillar (CAT) could be a monster in 2011, especially with the integration of Bucyrus International (BUCY), which I think will turn out to be a fantastic acquisition.

    Current earnings-per-share estimates of about $6 are, I think, way too low. I see this stock going to $120 in the next year. Too gutsy? Ask yourself what happens if the United States comes back as a growth nation? Right now almost all of the growth is overseas.

    Still a fantastic mineral play and a terrific call on world growth.

  • [By Jim Cramer]

    this stock could be a monster in 2011, especially with the integration of Bucyrus (BUCY), which I think will turn out to be a fantastic acquisition. Estimates, currently showing EPS at about $6, I think are way, way too low. I see this stock going to $120 in the next year. Too gutsy? Ask yourself what happens if the United States comes back as a growth nation. Right now almost all of the growth is overseas. Still a fantastic mineral play and a terrific call on world growth.

  • [By Dave Friedman]

    The shares closed at $91.37, up $1.56, or 1.74%, on the day. They have traded in a 52-week range of $63.34 to $116.55. Volume today was 10,450,473 shares, against a 3-month average volume of 9,960,260 shares. Its market capitalization is $59.03billion, its trailing P/E is 15.11, its trailing earnings are $6.05 per share, and it pays a dividend of $1.84 per share, for a dividend yield of 2.00%. About the company: Caterpillar Inc. designs, manufactures, and markets construction, mining, agricultural, and forestry machinery. The Company also manufactures engines and other related parts for its equipment, and offers financing and insurance. Caterpillar distributes its products through a worldwide organization of dealers.

5 Best Stocks To Own Right Now: Tupperware Corporation(TUP)

Tupperware Brands Corporation operates as a direct seller of various products across a range of brands and categories through an independent sales force. The company engages in the manufacture and sale of kitchen and home products, and beauty and personal care products. It offers preparation, storage, and serving solutions for the kitchen and home, as well as kitchen cookware and tools, children?s educational toys, microwave products, and gifts under the Tupperware brand name primarily in Europe, Africa, the Middle East, the Asia Pacific, and North America. The company provides beauty and personal care products, which include skin care products, cosmetics, bath and body care, toiletries, fragrances, nutritional products, apparel, and related products principally in Mexico, South Africa, the Philippines, Australia, and Uruguay. It offers beauty and personal care products under the Armand Dupree, Avroy Shlain, BeautiControl, Fuller, NaturCare, Nutrimetics, Nuvo, and Swissgar de brand names. The company sells its Tupperware products directly to distributors, directors, managers, and dealers; and beauty products primarily through consultants and directors. As of December 26, 2009, the Tupperware distribution system had approximately 1,800 distributors, 61,300 managers, and 1.3 million dealers; and the sales force representing the Beauty businesses approximately 1.1 million. The company was formerly known as Tupperware Corporation and changed its name to Tupperware Brands Corporation in December 2005. The company was founded in 1996 and is headquartered in Orlando, Florida.

Advisors' Opinion:
  • [By Sam Collins]

    Household name Tupperware Brands Corp. (NYSE:TUP) is a global direct seller of products with multiple brands through an independent sales force of 2.4 million people. Its product line focuses on kitchen storage and serving solutions, as well as personal-care products. Over 60% of sales in 2011 are expected to come from Europe and Asia, and the stock has appeal as an emerging markets story.

    S&P estimates that 2011 earnings will increase to $4.54 versus $3.53 in 2010, and it increased its rating to a “five-star strong buy” with a recently revised 12-month target of $81, up from $73. The 2005 purchase of Sara Lee’s (NYSE:SLE) direct-sales business, which has a high growth rate, should be a long-term benefit. TUP’s annual dividend yield is 1.92%.

    Technically TUP had a pullback following a new high at over $70 and is currently oversold. Buy TUP at the current market price with a trading target of $70, but longer term a much higher target will likely be attained.

Top 10 Value Companies To Own In Right Now: Dollar Tree Inc.(DLTR)

Dollar Tree, Inc. operates discount variety stores in the United States and Canada. Its stores offer merchandise primarily at the fixed price of $1.00. The company operates its stores under the names of Dollar Tree, Deal$, Dollar Tree Deal$, Dollar Giant, and Dollar Bills. Its stores offer consumable merchandise, including candy and food, and health and beauty care, as well as household consumables, such as paper, plastics, household chemicals, in select stores, and frozen and refrigerated food; variety merchandise, which includes toys, durable housewares, gifts, party goods, greeting cards, softlines, and other items; and seasonal goods, such as Easter, Halloween, and Christmas merchandise. As of April 30, 2011, it operated 4,089 stores in 48 states and the District of Columbia, as well as 88 stores in Canada. The company was founded in 1986 and is based in Chesapeake, Virginia.

Advisors' Opinion:
  • [By Sam Collins]

    Dollar Tree (NASDAQ:DLTR) is a leading operator of discount variety stores. The stock has hugged its 50-day moving average since mid-February. But a recent minor revision of earnings for this year by several analysts and the recent market sell-off have resulted in a fall from its high of the year at over $70 to under $66. However, Goldman Sachs (NYSE:GS) increased its price target to $73 from $69.

    Technically DLTR is oversold, according to MACD. A break below its 50-day moving average could result in a pullback to $64, but positions could be taken at the current market price. The trading target for DLTR is $72.