Top Dividend Stocks To Buy For 2016: February 2014

Tuesday, February 25, 2014

Creating a plan for the right retirement income

It's pretty well established that we can live another 30 years after a "traditional" retirement at 65 — just about as long as we did in our working years.

While that's good news in one sense, it presents a whole set of new problems, many of them money-related — like just about everything else in life.

Let's tackle one of people's biggest concerns about retiring: How do you know exactly how much money you need every week, or every month, or, for that matter, every year? Once you figure that out, how does that compare with how much you've saved?

For example, you're living on income of $5,000 a month now. That's what you think you'll need when you retire. How can you make sure that you'll have enough between your savings, pension (if you have one) and Social Security?

RETIREMENT: Planning for your future

James Nichols, head of advice for ING Retirement Solutions, says people spend a lot of time focused on building a big pile of money for retirement. "But the reality is when you're moving into retirement, a big pile of money doesn't do you much good unless you know how to turn that into income," he says.

"It takes 17 of us easily 40 hours of work — MBAs, CFPs, CPAs, lawyers — to create a business plan for the rest of your life," says Ron Weiner, president of RDM Financial Group in Westport, Conn. "It is incredibly complicated." When you retire, you're not making more money to make up for mistakes, he says.

An adviser can help you sort out some of the challenges you face, says Nichols. "There are so many risks and challenges, it's very hard to be an expert on your own," he says. "Building a plan ... is key. And understanding what sort of compromises you may or may not need to make to make sure you income lasts a lifetime. We talk about individuals' needs, wants and wishes."

GETTING HELP: Do you have 'financial adviser anxiety'?

As every financial planner will tell you, the first thing you and your adviser have to do is create a budget.

Und! erstanding that budget is the first step in the process, says Lena Haas, senior vice president and head of investing product management and retirement at E-Trade Financial. Start with your real needs. "What are your fundamental needs to survive each month — mortgage, rent, utilities, food, medical expenses," she says.

You also need to figure out your wants, geared toward the lifestyle you're seeking. "Do you want to travel? Are your children far away?" Haas says. "Start thinking about special buckets, like heath care, college expense if you still have children, or maybe taking care of older parent or relative." Then, she says, figure out how those expenses jibe with your retirement income.

To make sure you're not caught short by unexpected bills, Mark Fried, president of TFG Wealth Management in Newtown, Pa., says you should have three to six months' income and expenses in reserve. "It's a ballpark of bank statements and health care bills," he says.

Once you have your reserves, start looking at your cash flow in retirement — the actual cash that ends up in your pocket, not your current salary. Say your annual salary while you're working is $150,000. "What you need to realize is, after taxes, after deductions, after your 401(k) contributions, you may be living on only $80,000. What is that actual cash flow coming into the house? That's where we start," Fried says.

Andrew Rafal, founding partner of Strategy Financial Group, a Phoenix-based financial advisory firm, says that the next step is to look at Social Security, and when the client should take it. If they make the wrong choice, there they can miss out on hundreds of thousands of dollars.

Haas says you need to look at all your sources of income. "Many people have, in addition to Social Security, a 401(k) from various employers, or pensions or annuities. It is helpful to understand all those streams of income. You can manage all of those and simulate that paycheck."

Then you must look at how much money is comi! ng in, an! d how much is going out. If you have a monthly shortfall, you can look at your investment portfolio to make up the difference. "The traditional way of looking is no longer true — invest in a conservative portfolio, so we don't lose principal. People live longer, and interest rates are quite low and will probably stay low for some time. Instead of keeping money in cash, it is important that they have a diverse portfolio, but not overly aggressive."

"What a financial plan really does is take all your hopes and dreams, figure out what that costs, apply some tax and inflation assumptions, look at what you have, and it's not that hard to figure what rate of return you need to achieve all that," says Weiner. "If it turns out that 2% is all you need, you can be in bonds. If you need 26%, people's feelings about markets and money have to be considered. You can't just say, 'I don't want to take risks.' "

Finally, Fried adds, you can't just write a plan, and set it on the shelf. "You will have to make corrections," he says. "If you don't do it enough, you may have to make dramatic changes later."

Friday, February 21, 2014

This Tech Sector About to See Explosive Growth?

Related HPQ Morgan Stanley Keeps Overweight Rating, $34 Target on HP Amid Earnings Top Trending Tickers On StockTwits For February 21

The 3D-printing sector may be currently in an impasse but trust me folks, when I say the sector will be significant going forward and a buying opportunity as the price of the 3D-printing machines fall. My stock analysis is that 3D printers will become a common sight on the desk of many homes.

Recall what happened when the laser printer first debuted in May 1984 with Hewlett-Packard Company’s (NYSE: HPQ) desktop laser printer. The initial cost was staggeringly high at more than $3,000, but now a laser printer sells for less than $100.00. The same thing will happen for the 3D printer as prices start to decline, based on my stock analysis.

Thursday, February 20, 2014

Top 10 US Stocks To Invest In Right Now

Starting with the pop star duo of Adam Levine and Nicki Minaj, Sears Holdings (NASDAQ: SHLD ) announced the launch of a new lifestyle and entertainment-driven business unit called Shop Your Own Way Brands.

The fashion destination will be exclusively found at Sears.com and Kmart.com, with the purpose of delivering authentic apparel collections reflecting the authentic personal style of iconic artists from the worlds of music and entertainment. Promoting the idea that people can hitch their wagons to the stars, the new business unit will enable a�naturally inspired social conversation through the ShopYourWay.com social shopping platform.

Brent Ullman, president and CEO of Star Branding, who will head up the business unit, said, "Our proven ability to create compelling entertainment based lifestyle brands combined with Adam Levine and Nicki Minaj's significant talent, and Sears Holdings' visionary position in retail and on-line communities create a powerful fashion proposition for the consumer."

Top 10 US Stocks To Invest In Right Now: Perma-Fix Environmental Services Inc.(PESI)

Perma-Fix Environmental Services, Inc., through its subsidiaries, operates as an environmental and technology know-how company in the United States. It operates in two segments, Treatment and Services. The Treatment segment provides nuclear, low-level radioactive, mixed waste containing hazardous and low-level radioactive constituents, and hazardous and non-hazardous waste treatment, processing, and disposal services primarily through four licensed and permitted treatment and storage facilities. It also engages in the research and development activities to identify, develop, and implement waste processing techniques for problematic waste streams. The Services segment offers on-site waste management services to commercial and government customers; and operates an equipment calibration and maintenance laboratory that services, maintains, and calibrates health physics and industrial hygiene instrumentation. It also provides technical services, which include health physic and radiological control technician services; safety and industrial hygiene services; and staff augmentation services, such as consulting, engineering, project management, waste management, environmental, and decontamination and decommissioning field personnel, technical personnel, and management and services. In addition, this segment offers consulting engineering services, including consulting environmental services comprising air, water, and hazardous waste permitting; air, soil, and water sampling; compliance reporting; emission reduction strategies; compliance auditing; and various compliance and training activities. The company serves research institutions, commercial companies, and public utilities, as well as governmental agencies through direct sales and intermediaries. Perma-Fix Environmental Services, Inc. was founded in 1990 and is based in Atlanta, Georgia.

Top 10 US Stocks To Invest In Right Now: Merck & Company Inc.(MRK)

Merck & Co., Inc. provides various health solutions through its prescription medicines, vaccines, biologic therapies, animal health, and consumer care products. The company?s Pharmaceutical segment provides human health pharmaceutical products, such as therapeutic and preventive agents for the treatment of human disorders in the areas of bone, respiratory, immunology, dermatology, cardiovascular, diabetes and obesity, infectious diseases, neurosciences and ophthalmology, oncology, vaccines, and women's health and endocrine. This segment also offers human health vaccines, such as preventive pediatric, adolescent, and adult vaccines. Its Animal Health segment discovers, develops, manufactures, and markets animal health products. This segment offers antibiotics, anti-inflammatory products, vaccines, products for the treatment of fertility disorders, and parasiticides for cattle, swine, horses, poultry, dogs, cats, salmons, and fish. The Consumer Care segment develops, manufac tures, and markets over-the-counter, foot care, and sun care products. Its over-the-counter product line includes non-drowsy antihistamines; treatment for occasional constipation; decongestant-free cold/flu medicine for people with high blood pressure; nasal decongestant spray; and treatment for frequent heartburn. This segment?s foot care products comprise topical antifungal, and foot and sneaker odor/wetness products; and sun care products include sun care lotions, sprays and dry oils; and sunburn relief products. The company serves drug wholesalers and retailers, hospitals, government agencies, physicians, physician distributors, veterinarians, animal producers, and managed health care providers, as well as food chain and mass merchandiser outlets in the United States and Canada. Merck & Co., Inc. was founded in 1891 and is headquartered in Whitehouse Station, New Jersey.

Advisors' Opinion:

[By Sean Williams]
More recently there was Merck's (NYSE: MRK ) suvorexant, which received praise from the FDA's panel by a vote of 12-to-4 in favor of approval, yet also dealt with concerns about some 11% of patients who exhibited somnolence (a state of near-sleep) during the day. Lower doses of the drug reduced this occurrence to just 7%, but it wasn't enough to convince the FDA, which rejected the drug on dosing concerns. The overall consensus among the Street is that suvorexant's approval process could be delayed by one year or more.

Hot Performing Stocks To Watch Right Now: Smiths Group(SMIN.L)

Smiths Group plc engages in the development, manufacture, sale, and support of products and services for the threat and contraband detection, energy, medical devices, communications, and engineered components markets worldwide. The company offers security equipment, including trace detection, millimetre-wave, infrared, biological detection, and diagnostics that detect and identify explosives, narcotics, weapons, chemical agents, biohazards, nuclear and radioactive material, and contraband. It also provides mechanical seals, seal support systems, engineered bearings, power transmission couplings, specialist filtration systems, and other hardware products for the oil and gas, chemical, pharmaceutical, pulp and paper, and mining sectors. In addition, the company offers medical devices aligned to specific therapies, primarily airway, pain and temperature management, infusion, needle protection, critical care monitoring, and vascular access. Further, it provides electronic and radio frequency products that connect, protect, and control critical systems for the wireless telecommunications, aerospace, defense, space, medical, rail, test, and industrial markets; and engineered components comprising ducting, hose assemblies, and heating elements that move and heat fluids and gases for the aerospace, medical, industrial, construction, and domestic markets. The company was founded in 1851 and is headquartered in London, United Kingdom.

Top 10 US Stocks To Invest In Right Now: Ultra Electronic Hdgs(ULE.L)

Ultra Electronics Holdings plc designs, develops, and manufactures electronic systems for the defense, security, transport, and energy markets worldwide. Its Aircraft and Vehicle Systems division offers airframe ice protection systems, active noise and vibration control, aircraft system electronics and test equipment, consultancy and training solutions, data bus network nodes, armored vehicle electronic systems, and software and systems. This division also provides airborne compressors, human/machine interface and vehicle control equipment, ID card printers, pneumatic sub-systems, remote weapon station control and portable oxygen generating equipment, rugged aircraft harness systems, sensors, and structural health monitoring systems. The company?s Information and Power Systems division offers airport information management systems, airport-wide systems integration, combat systems, command information management systems, enterprise IT solutions, IT consultancy, nuclear rea ctor control and instrumentation, data fusion and situational awareness systems, radar and electro-optic systems, surveillance and tracking systems, naval power conversion, gas turbine electric start and regeneration systems, signature measurement and control systems for naval vessels, and transit system power conversion and controls; and command, control, and information systems. Its Tactical and Sonar Systems division provides acoustic countermeasure systems, airborne anti-submarine warfare systems, underwater surveillance systems and acoustic countermeasures, airborne targeting pods, communications network interfacing equipment, data recording and analysis, cryptographic equipment, gunfire location systems, loitering munition systems, radio communication systems, sea mine disposal systems, sonar transducers and systems, submarine tactical communication systems, and torpedo defense systems; and video, voice, and data communication systems. The company is based in Greenford , the United Kingdom.

Top 10 US Stocks To Invest In Right Now: Atlatsa Resources Corp (ATL)

Atlatsa Resources Corporation is engaged in mining, exploration and development of mineral deposits located in the Bushveld Igneous Complex (BIC), South Africa. The principal business activity is the mining and exploration of platinum group metals (PGM), through its mineral property interests. The Company�� subsidiaries include N1C Resources Incorporation, Anooraq Minera Mexicana, N2C Resources Incorporation, Plateau Resources Proprietary Limited, Bokoni Holdings Proprietary Limited, Bokoni Mines Proprietary Limited, Boikgantsho Proprietary Limited, Kwanda Proprietary Limited, Ga-Phasha Proprietary Limited, Middlepunt Hill Management Services (Proprietary) Limited and Lebowa Platinum Mine Limited. Advisors' Opinion:

[By Roberto Pedone]
Another stock that's starting to move within range of triggering a big breakout trade is Atlatsa Resources (ATL), which engages in the mining, exploration and development of platinum group metals properties located in the Bushveld Igneous Complex in South Africa. This stock has been on fire so far in 2013, with shares up a whopping 198%.

If you take a look at the chart for Atlatsa Resources, you'll notice that this stock has been uptrending strong for the last two months and change, with shares soaring higher from its low of 28 cents per share to its intraday high of 46 cents per share. During that uptrend, shares of ATL have been consistently making higher lows and higher highs, which is bullish technical price action. Shares of ATL have now started to take out some near-term overhead resistance levels at 43 cents to 44 cents per share. That move is quickly pushing shares of ATL within range of triggering another big breakout trade.

Market players should now look for long-biased trades in ATL if it manages to break out above its 52-week high at 50 cents per share with high volume. Look for a sustained move or close above that level with volume that hits near or above its three-month average action of 170,178 shares. If that breakout hits soon, then ATL will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are its next major overhead resistance levels at 63 cents to 73 cents per share, or even 80 cents per share.

Traders can look to buy ATL off any weakness to anticipate that breakout and simply use a stop that sits right below its 50-day moving average of 39 cents per share, or near more support at 37 cents per share. One can also buy ATL off strength once it clears its 52-week high at 50 cents with volume and then simply use a stop that sits a comfortable percentage from your entry point.

Top 10 US Stocks To Invest In Right Now: Premier Gold Mines Ltd (PIRGF)

Premier Gold Mines Limited (Premier) is an exploration companies with a pipeline of gold projects focused in mining jurisdictions in Canada and the United States. Premier�� portfolio includes assets in gold mining districts, such as Red Lake, Musselwhite and Geraldton in Ontario and the Carlin Trend in Nevada. It projects include Rahill-Bonanza Project, East Bay Project, PQ North Project, Trans-Canada Project and Redgold Project. Its subsidiaries include Premier Gold Mines USA Inc., 2295196 Ontario Inc., 2295197 Ontario Inc. and Roxmark Mines Ltd. On January 16, 2012, Premier sold its interest in the Newman-Madsen property in Red Lake to Sabina Silver Corporation. On November 18, 2011, the Company incorporated a Canadian subsidiary Premier Royalty Corporation. On August 16, 2011, it acquired Goldstone Resources Inc. On June 6, 2012, the Company acquired the Cove Gold Project, located within the Eureka-Battle Mountain Trend of Nevada, of Victoria Gold Corp.

Top 10 US Stocks To Invest In Right Now: Time Warner Inc.(TWX)

Time Warner Inc. operates as a media and entertainment company in the United States and internationally. It operates in three segments: Networks, Filmed Entertainment, and Publishing. The Networks segment provides domestic and international networks, premium pay and basic tier television programming services, and digital media properties, which primarily consist of brand-aligned Websites. Its premium pay television services consist of the multi-channel HBO and Cinemax premium pay television services. This segment provides programming to cable system operators, satellite service distributors, telephone companies, and other distributors; sells advertising; and licenses original programming to domestic and international television networks. The Filmed Entertainment segment produces and distributes feature films, television and other programming, and videogames; distributes home video products; and licenses rights to its feature films, television programming, and characters. T he Publishing segment publishes magazines and books; and operates various Websites, as well as engages in marketing services and direct-marketing businesses. This segment publishes magazines on style and entertainment, lifestyle, news, and sports. The company?s brands include TNT, TBS, CNN, HBO, Cinemax, Warner Bros., New Line Cinema, People, Sports Illustrated, and Time. Time Warner Inc. was founded in 1985 and is headquartered in New York, New York.

Advisors' Opinion:

[By Ishfaque Faruk]
Time Warner� (NYSE: TWX ) �has reported record quarterly revenues. The company's TV networks have been performing very well which has led to stellar free cash flow growth. The company�increased its quarterly cash dividend by 10% and it is buying back $5 billion of stock. After Time Warner completes the spin-off of its publishing business, Time, the company will become more focused as a pure-media company, which will lead to additional upside.
[By Tim Beyers]
For Time Warner (NYSE: TWX ) , a surprise teaser for Man of Steel 2 overshadowed what may be DC's best animated film yet -- Justice League: The Flashpoint Paradox -- and important details for what's to come in season 2 of Arrow, a ratings winner for Warner's CW network.

Top 10 US Stocks To Invest In Right Now: Primoris Services Corporation(PRIM)

Primoris Services Corporation, a specialty contractor and infrastructure company, provides a range of construction, fabrication, maintenance, replacement, water and wastewater, and product engineering services in the United States and internationally. It offers construction services, including installation of underground pipeline, cable, and conduits for entities in the petroleum, petrochemical, and water industries; installation and maintenance of industrial facilities for petroleum, petrochemical, and water industries; installation of commercial and industrial cast-in-place structures; and construction of highways, as well as industrial and environmental constructions. The company also engages in designing, supplying, and installing high-performance furnaces, heaters, burner management systems, and related combustion and process technologies for clients in the oil refining, petrochemical, and power generation industries, as well as furnishes turnkey project management se rvices and delivers custom engineering solutions. It serves public utilities, petrochemical companies, energy companies, municipalities, state departments of transportation, and other customers. Primoris Services Corporation is based in Dallas, Texas.

Advisors' Opinion:

[By Holly LaFon] ris is a contractor and infrastructure company founded in 1946. It provides services related to construction fabrication, maintenance, replacement, water and wastewater and engineering to clients that are typically major public utilities, petrochemical companies, energy companies, municipalities and others. It doubled its size in 2009 and 2010 when it purchased the James Construction Group and Rockford Corporation, respectively. Primoris��predecessor company, Rhapsody acquisition Corp., had its IPO in 2006, and Primoris merged with Rhapsody in 2008.
Joel Greenblatt bought 59,076 shares at an average price of $13.56 in the fourth quarter. After being relatively flat since its IPO, Primoris��stock price began to rise dramatically in 2011, and Greenblatt bought on a dip in the fourth quarter. In the last year it has appreciated 87 percent.
Primoris��free cash flow and revenue in 2010 bounced back from a down year in 2009 and EBITDA grew each year in the same span of time. Return on equity and return on assets have both declined over the three years, but in the third quarter of 2011 came back strongly. ROE increased to 29.3 percent from 16.1 at year-end 2010, and ROA has increased to 11.4 percent from 4.8 percent at year-end 2010.
The third quarter was good in other ways. The company reached its highest revenue and net income in its 60-year history. However, fluctuations in revenue and earnings may occur over the next several quarters as it completes several major projects. On November 30, it announced $181 million in new contracts.
Primoris��P/E, P/S and P/B ratios:
PRIM pe,ps,pb Interactive Chart
Caribou Coffee (CBOU)
Caribou Coffee is a gourmet coffee company that owns the second-largest number of coffeehouses in the U.S. After rising significantly in the second quarter of 2011, its stock price dropped in the fourth quarter, when Joel Greenblatt purchased it. He bought 52,794 shares at an average price of $13.27.

Top 10 US Stocks To Invest In Right Now: Huntsman Corporation(HUN)

Huntsman Corporation engages in the manufacture and sale of differentiated organic and inorganic chemical products worldwide. The company offers polyurethane chemicals, including methyl diphenyl diisocyanate, propylene oxide, polyols, propylene glycol, thermoplastic polyurethane, aniline, and methyl tertiary-butyl ether products, which are used to produce rigid and flexible foams, as well as coatings, adhesives, sealants, and elastomers; and performance products, such as amines, carbonates, surfactants, linear alkyl benzene, maleic anhydride, performance chemicals, ethylene glycol, olefins, and technology licenses. It also provides advanced materials comprising epoxy resin compounds and formulations; cross-linking, matting agents, and curing agents; and epoxy, acrylic and polyurethane-based adhesives, and tooling resin formulations. In addition, Huntsman Corporation offers textile chemicals, dyes, and titanium dioxide. The company?s products are used in various applicatio ns, including adhesives, aerospace, automotive, construction products, durable and non-durable consumer products, electronics, medical, packaging, paints and coatings, power generation, refining, synthetic fiber, textile chemicals, and dye industries. Huntsman Corporation was founded in 1970 and is based in Salt Lake City, Utah.

Advisors' Opinion:

[By Dan Caplinger]
Another source of potential problems is the titanium dioxide market. DuPont has made substantial investments in boosting TiO2 production based on the extremely high demand seen a couple of years ago, but buyers stockpiled substantial amounts of the chemical in order to avoid paying ever-higher prices. DuPont joined competitors Huntsman (NYSE: HUN ) and Tronox (NYSE: TROX ) in implementing TiO2 price increases, with DuPont's effective July 1, but the question remains whether the paint makers that need the chemical will keep buying or continue to seek cheaper substitutes.
[By Victor Selva] re promising results, and less volatile revenues during these last years. This, of course, has led to a high price to earnings ratio discouraging investors as we see later.

Geographically Diversified

On 2012, almost 50% of Eastman sales were generated in North America, while more than 25% were in Asia and 20% in Europe, Middle East and Africa. This diversification is to be taken into account since it guarantees long-term revenue, even if cigarette consumption decreases in some specific region (for instance, American sales declined �in recent years), which would stabilize acetate tow demands worldwide.

Industrial Background and Gurus��Preference

Eastman�� earnings per share growth was significantly higher than industry median (46.9% vs. 5.2%) but so was Huntsman��, at 46.5%. The critical difference between these two industry giants stands out by looking at their price to earnings: Eastman�� is below median (16.4 vs. 19.1) while Huntsman rose up to 130.1, thus entailing a significant price premium relative to industry peers��average.

Although Ashland does have an inferior price to earnings ratio than Eastman�� (11.5), there�� a significant difference in their earnings per share growth: 27%, probably caused by a decline in revenue.

This might have been one of the reasons that motivated investors David Dreman (Trades, Portfolio) and Joel Greenblatt (Trades, Portfolio) to significantly reduce their stake in Huntsman (both of them by more than 80% margin). In contrast, Leon Cooperman (Trades, Portfolio) and Scott Black (Trades, Portfolio), reinforced their positions in Eastman. Most notably, Ray Dalio (Trades, Portfolio) even sold out his Huntsman position and bought more than 50,000 Eastman shares and a smaller 5,600 share position at Ashland by the end of September.

Although being volatile, Eastman appears to show a promising future since it�� both cheaper and faster growing than its rivals in che

Top 10 US Stocks To Invest In Right Now: Maple Leaf Reforestation Inc. (MPE.V)

Maple Leaf Green World Inc. operates in the environmental industry primarily in China. The company operates a nursery business in inner Mongolia that focuses on growing tree seedlings and nursery products, which assist with antidesertification. It also focuses on a Yellowhorn seedling and tree operations, which provide Yellowhorn seeds and oil for the manufacture of bio-diesel fuel and cooking oils. The company was formerly known as Maple Leaf Reforestation Inc. and changed its name to Maple Lead Green World Inc. in October 2012. Maple Lead Green World Inc. is based in Calgary, Canada.

Top 10 US Stocks To Invest In Right Now: Yongnam Holdings Limited (Y02.SI)

Yongnam Holdings Limited, an investment holding company, provides engineering and construction services primarily in Singapore, the Middle East, and other countries in Asia. The company�s Structural Steelworks segment offers engineering coordination, detailing, and fabrication and erection of structural steel services. This segment is also involved in the design, fabrication, supply, and erection of steel structural frames for long span aircraft hangars, high rise buildings, and commercial and industrial buildings, as well as for infrastructure related developments. Its Specialist Civil Engineering division provides modular strutting system for load carrying and providing clear spans. This modular strutting system includes laced universal beams of various cross-sections in modular lengths; single and double waler beams in various lengths, intermediate supporting beams, king posts, bracing, and waler support brackets; and a range of strut to waler joints to cover the used angles. The company�s Mechanical Engineering segment engages in the installation of mechanical equipment and plant; and supply, fabrication, and installation of mechanical components, as well as offers plant maintenance services. Yongnam Holdings Limited was founded in 1971 and is based in Singapore.

Top 10 US Stocks To Invest In Right Now: A123 Systems Inc.(AONE)

A123 Systems, Inc., together with its subsidiaries, designs, develops, manufactures, and sells rechargeable lithium-ion batteries and energy storage systems worldwide. The company?s battery products are based on its Nanophosphate technology that delivers energy storage solutions for power generation, transmission, and distribution for application development in the transportation, electric grid services, and commercial markets. Its battery systems comprise energy storage solutions for BAE systems; and grid storage solutions, prismatic battery systems, starter battery systems, and lead acid replacement batteries. In addition, the company provides research and development services to government agencies and commercial customers. A123 Systems, Inc. sells its batteries and battery systems directly to end-user customers, as well as through reseller and distributor channels. The company was founded in 2001 and is headquartered in Waltham, Massachusetts.

Top 10 US Stocks To Invest In Right Now: Old Republic International Corporation(ORI)

Old Republic International Corporation, through its subsidiaries, provides various insurance and mortgage guaranty products in North America. The company operates in three segments: General Insurance, Mortgage Guaranty, and Title Insurance. The General Insurance segment provides liability insurance coverages to businesses, government, and other institutions in commercial construction, forest products, energy, general manufacturing, and financial services industries; and transportation, including trucking and general aviation industries. It provides various insurance products, such as automobile extended warranty, aviation, commercial automobile insurance, general liability, home warranty, inland marine, travel accident, and workers? compensation, as well as liability coverage for claims arising from the acts of owners or employees, and protection for the physical assets of businesses. This segment also offers financial indemnity products, such as consumer credit indemnity , errors and omissions/directors and officers, guaranteed asset protection, and surety, as well as bonds that cover the exposures for losses of monies, or debt and equity securities due to acts of employee dishonesty. The Mortgage Guaranty segment insures first mortgage loans, primarily on residential properties incorporating one-to-four family dwelling units to mortgage bankers, brokers, commercial banks, and savings institutions. The Title Insurance segment provides lenders' and owners' title insurance policies to real estate purchasers and investors based upon searches of the public records. It also provides escrow closing and construction disbursement services; and real estate information products, national default management services, and services related to real estate transfers and loan transactions. Old Republic International Corporation markets its products directly, as well as through insurance agents and brokers. The company was founded in 1887 and is based in Chi cago, Illinois.

Advisors' Opinion:

[By Lawrence Meyers]
The part I like the most is that WGL sells energy credits and carbon offsets to retail customers. The company makes good money on these elements, selling to customers who just like to feel good about how they are ��elping the environment�� WGL has a long history as an energy company and has paid a dividend for 37 years. It currently pays 4.3% annually.
Old Republic International (ORI)
The next of our dividend stocks is one you may have heard of: Old Republic International (ORI). Old Republic started back in 1887 and is an insurance company that offers a huge array of products. A lot of insurance products are very high margin, and Old Republic has mastered the art of selling these. Extended Automobile Warranty, Home Warranty an Travel Accident Insurance are great segments to be playing in.

Top 10 US Stocks To Invest In Right Now: Devon Energy Corporation(DVN)

Devon Energy Corporation, together with its subsidiaries, engages in the acquisition, exploration, development, and production of natural gas and oil in the United States and Canada. It also involves in transporting oil, gas, and natural gas liquids (NGL); and processing natural gas. The company owns oil and gas properties in the mid-continent area of the central and southern United States; the Permian Basin in Texas and New Mexico; the Rocky Mountains area of the United States; and the onshore areas of the Gulf Coast, principally in south Texas and south Louisiana. It also owns oil and gas properties in the provinces of Alberta, British Columbia, and Saskatchewan, Canada. In addition, the company offers marketing and midstream services, including marketing of gas, crude oil, and NGL, as well as constructing and operating pipelines, storage and treating facilities, and natural gas processing plants. As of December 31, 2010, it had 2,042 million barrel of oil equivalent of proved developed reserves. The company sells its gas production to various customers, such as pipelines, utilities, gas marketing firms, industrial users, and local distribution companies; crude oil production to refiners, remarketers, and other companies; and NGL production to customers in petrochemical, refining, and heavy oil blending activities. Devon Energy Corporation was founded in 1971 and is headquartered in Oklahoma City, Oklahoma.

Advisors' Opinion:

[By Sara Murphy]
It's worth noting that cost savings may not be imminent in every location. Jay Ewing, Devon Energy's (NYSE: DVN ) water-use expert in the Barnett, recently told a Texas House committee hearing that while the company's cost of recycling varies by location, it's still "50 to 75% more expensive than the alternatives." But that's likely to change as recyclers improve their processes and increase efficiency.

Tuesday, February 18, 2014

Top Shipping Stocks To Own For 2015

Saying that Best Buy (NYSE: BBY ) stock has had an impressive run so far this year is a gross understatement. The stock has gained more than 119% year to date, compared to a return of just 10% for the broader market. However, don't let the stock's rally deceive you into thinking Best Buy's turnaround plans have gotten off without a hitch. Current shareholders of Best Buy stock should be careful, lest the stock come crashing back to reality.

A tight fix
Earlier this week, Best Buy stock hit another 52-week high after the company agreed to sell its 50% stake in Best Buy Europe to its joint venture partner Carphone Warehouse Group. The cash and stock deal is valued at about $775 million. The deal should help fund Best Buy's turnaround effort, though it's still a loss on investment for the company given its original buy-in five years ago for $2.15 billion. Meanwhile, Best Buy faces no shortage of complications back home.

Amazon's�low prices, convenient platform, and speedy shipping have made Best Buy's big box retail strategy all but obsolete. In a late bid to counter comparison-shopping, Best Buy started matching online prices. However, showrooming is the least of Best Buy's worries at this point. In addition to online competition, the consumer electronics chain also faces shrinking margins, declining sales, and deteriorating profitability.

Top Shipping Stocks To Own For 2015: Responsys Inc.(MKTG)

Responsys, Inc. provides on-demand software and professional services primarily in North America, the Asia Pacific, and Europe. The company offers Responsys Interact suite, a software-as-a-service platform that provides marketers with a set of integrated applications to create, execute, optimize, and automate marketing campaigns in various channels, including email, mobile, social, and the Web. Its platform also leverages third-party applications and data from real-time sources allowing customers to deliver targeted content to its customers and known prospects as part of their interactive marketing campaigns. In addition, it provides professional services, such as strategic, creative, deliverability, campaign, and education services. The company offers its on-demand software and professional services to retail and consumer, travel, financial services, and technology industries through a direct sales force. Responsys, Inc. was founded in 1998 and is headquartered in San Bru no, California.

Advisors' Opinion:

[By Seth Jayson]
Calling all cash flows
When you are trying to buy the market's best stocks, it's worth checking up on your companies' free cash flow once a quarter or so, to see whether it bears any relationship to the net income in the headlines. That's what we do with this series. Today, we're checking in on Responsys (Nasdaq: MKTG ) , whose recent revenue and earnings are plotted below.
[By The GeoTeam]
Our recent 2013 articles on SaaS companies Selectica (SLTC), E2open (EOPN), Responsys (MKTG), Vocus (VOCS), and ExactTarget (ET) highlighted such opportunities. The average return since the inception of our coverage currently stands at around 34% (55% at their highs).

Top Shipping Stocks To Own For 2015: Pacific Capital Bancorp(PCBC)

Pacific Capital Bancorp operates as the bank holding company for Santa Barbara Bank & Trust, National Association, N.A. that provides various commercial and consumer banking services to households, professionals, and businesses. It offers depository services, such as checking accounts, interest-bearing checking or NOW accounts, money market accounts, individual retirement accounts, savings deposits, and certificates of deposit. The company provides loan products, including commercial and industrial loans, commercial real estate loans, lines of credit, letters of credit, asset based lending, construction loans, and land acquisition and development loans to small business and middle market commercial clients; residential real estate loans, home equity lines and loans, and consumer loans to individual clients; and small business administration loans for working capital, business acquisitions, acquisition of real estate, growth capital, and equipment financing. It also offers safe deposit boxes, travelers? checks, money orders, foreign exchange services, and cashiers? checks, as well as provides trust and investment advisory services; investment reviews, analysis, and customized portfolio management for separately managed accounts; full service brokerage; trust and fiduciary services; equity and fixed income management; and real estate and specialty asset management. As of December 19, 2011, the company operated 47 retail branches in the central coast of California. It also operates loan production centers, automated teller machines, and customer contact call centers, as well as offers services through online banking. The company was founded in 1960 and is headquartered in Santa Barbara, California.

Top 5 Medical Companies To Watch For 2014: National Technical Systems Inc.(NTSC)

National Technical Systems, Inc., a diversified technical services company, provides engineering and compliance testing services to the defense, aerospace, telecommunications, automotive, energy, consumer products, and industrial products markets worldwide. The company offers product life-cycle product integrity support services, including design engineering, compliance, testing, certification, quality registration, and program management. It provides conformity assessment and management system registration services, as well as technology services for product certification, product safety testing, and product evaluation. The company also offers management registration and certification services. The company was founded in 1961 and is based in Calabasas, California.

Top Shipping Stocks To Own For 2015: Bank Of Ireland(BKIR.L)

The Governor and Company of the Bank of Ireland provides banking and other financial services to small and medium-sized commercial and industrial companies in Ireland and internationally. The company?s products include interest and non-interest bearing current accounts; demand and time deposit accounts; savings accounts; loans to customers, including overdrafts, installment credit, and finance lease receivables; and mortgage loans for house purchases, home improvement loans, and secured personal loans, as well as term loans, working capital finance, and business and corporate loans. It also offers international asset financing, leasing, installment credit, invoice discounting, foreign exchange facilities, and interest and exchange rate hedging instruments; and executor, trustee, life assurance, pension, and financial advisory services, including mergers and acquisitions. In addition, the company provides treasury products and services, credit card, online and telephone ba nking services, private banking, and fiduciary services; and car, home, and life insurance products, as well as offers an ATM infrastructure and related services in various post office locations. Further, it provides foreign currency note services and international money payment services to various banking institutions throughout the United States and Canada. As of December 31, 2010, it operated 298 bank branches, including 254 branches in Ireland and 44 branches in northern Ireland, as well as 1,280 ATMs The Governor and Company of the Bank of Ireland was founded in 1783 and is headquartered in Dublin, Ireland.

Top Shipping Stocks To Own For 2015: KB Home (KBH)

KB Home is a homebuilding company. The Company constructs and sells homes through its operating divisions under the name KB Home. The Company operates in nine states and 32 markets, including California, Arizona, Nevada, Colorado, Texas, Florida, Maryland, North Carolina and Virginia. The Company organizes its homebuilding operations into four segments: West Coast, Southwest, Central and Southeast. In July 2012, it acquired land within the Elworthy Ranch property in the town of Danville. In September 2012, it acquired Mason Ranch, which is a 330-acre land asset in Cedar Park/Leander West, submarkets in metropolitan Austin. In December 2012, the Company acquired 65 lots in Fuquay-Varina, N.C.

Homebuilding

The Company�� homebuilding operations offers a variety of homes designed primarily for first-time, move-up and active adult homebuyers, including attached and detached single-family homes, townhomes and condominiums. It offers homes in development communities, at urban in-fill locations and as part of mixed-use projects. During the fiscal year ended, November 30, 2011 (fiscal 2011), the Company, through its homebuilding segment, delivered 5,812 homes. During fiscal 2011, homebuilding operations accounted for 99.2% of the total revenues.

Financial Services

The financial services segment provides title and insurance services to its homebuyers. This segment also provided mortgage banking services to the Company�� homebuyers indirectly through KBA Mortgage, LLC (KBA Mortgage), a former unconsolidated joint venture of a subsidiary of ours and a subsidiary of Bank of America, N.A., from the venture�� formation until June 30, 2011, when it ceased offering mortgage banking services. Effective June 27, 2011, it entered into a marketing services agreement with MetLife Home Loans, a division of MetLife Bank, N.A. Under the agreement, MetLife Home Loans��personnel, located on site at several of its new home communities, can offer financing options and re! sidential consumer mortgage loan products to its homebuyers, and originate residential consumer mortgage loans for homebuyers who elect to use MetLife Home Loans. The Company�� homebuyers may also elect to use other providers of mortgage banking services. Its financial services operations accounted for 0.8% of the Company�� total revenues in fiscal 2011.

Advisors' Opinion:

[By Dan Caplinger]
Yet industry CEOs remain convinced that the recovery is for real. KB Home's (NYSE: KBH ) Jeffrey Mezger said recently that he sees the recovery as being only in its early stages, while PulteGroup (NYSE: PHM ) CEO Richard Dugas pointed to strength on the East Coast, in the middle third of the country, and in Phoenix, with Pulte actually slowing its sales rate down in order to try to focus on the highest-margin business available. For Hovnanian's part, CEO Ara Hovnanian pointed to year-over-year gains in every one of the past 12 months as evidence of the strength of the recovery.
[By Anora Mahmudova]
Shares in KB Home (KBH) �fell 2.7%, while Toll Brothers�� (TOL) �shares lost 1.6%.

Top Shipping Stocks To Own For 2015: Fenner(FENR.L)

Fenner PLC engages in the manufacture and distribution of conveyor belting and precision polymer products primarily in Europe, the Americas, the Asia Pacific, and Africa. It operates through two segments, Conveyor Belting and Advanced Engineered Products. The Conveyor Belting segment manufactures heavyweight ply, woven, PVC, and steel cord conveyor belting for mining, power generation, and industrial applications. This segment also installs, monitors, and services conveyor systems for its mining customers. The Advanced Engineered Products segment produces precision polymer products, which comprise precision drives for computer peripherals, copiers, and ATMs; power transmission and motion transfer components; silicone and complex hoses for heavy duty trucks, buses, and off-road vehicles; seals and sealing solutions for the fluid power and oil and gas industries; technical textiles for medical and industrial applications, and silicone based products for medical applications; rollers for digital image processing and medical diagnostics; and fluropolymer components for fluid and gas handling. The company?s principal markets include underground mining; hardrock mining; aggregates; power generation; grain; forestry; package handling; moving walkways; paper handling; computer peripherals; copiers; electrical/mechanical equipment; agricultural machinery; heating, ventilating, and air conditioning; diesel engines; pharmaceuticals; machine tools; mobile hydraulics; off-highway machines; mechanical handling; construction equipment; process industries; electronics, oil, gas, and aerospace; medical textiles; digital image transfer rollers; and technical fabrics. Fenner PLC was founded in 1861 and is based in Hessle, the United Kingdom.

Top Shipping Stocks To Own For 2015: Actions Semiconductor Co. Ltd.(ACTS)

Actions Semiconductor Co., Ltd. operates as a semiconductor company in the People?s Republic of China. The company designs, develops, and markets integrated platform solutions, including system-on-a-chips (SoCs), firmware, software development tools, and reference designs for the manufacturers of portable media players. Its SoCs are integrated circuits that incorporate digital signal processor, a micro controller unit, embedded memory, codec, a power management unit, and other components. The company?s SoCs products also comprise on-chip memory, controllers for color liquid crystal display, and analog components, including digital-to-analog converters, phase lock loops, and USB transceivers. Actions Semiconductor Co., Ltd.?s solution development kits include the embedded firmware code, software tools, and documentation to utilize its SoCs in portable media players. The company?s firmware utilizes an embedded structure design with interface that allows customers to pick and choose functionalities and add new device drivers. Its manufacturing software tools also allow its customers in the mass production of products based on its turnkey process. The company?s reference designs consist of detailed specifications of other required components and references, which allow customers to assemble a portable media player. Actions Semiconductor Co., Ltd. also offers semiconductor product testing services. The company sells its integrated platform solutions directly, as well as through distributors to portable media player manufacturers, brand owners, and value-added distributors in China and internationally. Actions Semiconductor Co., Ltd. was founded in 1999 and is headquartered in Zhuhai, the People?s Republic of China.

Advisors' Opinion:

[By Seth Jayson]
When judging a company's prospects, how quickly it turns cash outflows into cash inflows can be just as important as how much profit it's booking in the accounting fantasy world we call "earnings." This is one of the first metrics I check when I'm hunting for the market's best stocks. Today, we'll see how it applies to Actions Semiconductor (Nasdaq: ACTS ) .

Top Shipping Stocks To Own For 2015: Mainstreet Equity Com Npv (MEQ.TO)

Mainstreet Equity Corp., a residential real estate company, engages in the acquisition, divestiture, value-enhancement, and management of multi-family residential properties in Canada. The company owns a portfolio of multi-family residential properties in Vancouver lower mainland, Calgary, Edmonton, Saskatoon, and the Greater Toronto area. As of September 30, 2012, it had a total portfolio was 7,516 residential units consisting of townhouses, garden-style apartments, and mid-rise and high-rise apartments; and 664 residential units held for sale. The company was founded in 1997 and is headquartered in Calgary, Canada.

Top Shipping Stocks To Own For 2015: Hudson Technologies Inc.(HDSN)

Hudson Technologies, Inc., through its subsidiary, Hudson Technologies Company, provides refrigerant services and solutions in the refrigeration industry primarily in the United States. Its products and services include refrigerant sales; refrigerant management services consisting primarily of reclamation of refrigerants; RefrigerantSide services comprising system decontamination to remove moisture, oils, and other contaminants. The RefrigerantSide services also include predictive and diagnostic services for industrial and commercial refrigeration applications, which are designed to predict potential catastrophic problems and identify inefficiencies in an operating system. The company?s products and services are primarily used in commercial air conditioning, industrial processing, and refrigeration systems. It sells reclaimed and new refrigerants to customers in air conditioning and refrigeration industry. The company serves commercial, industrial, and government customer s, as well as refrigerant wholesalers, distributors, contractors, and refrigeration equipment manufacturers; and customers in petrochemical, pharmaceutical, industrial power, manufacturing, commercial facility, and property management and maritime industries. Hudson Technologies, Inc. has a strategic alliance with The Linde Group to market its service offering outside the United States. The company was founded in 1991 and is headquartered in Pearl River, New York.

Top Shipping Stocks To Own For 2015: Landstar System Inc. (LSTR)

Landstar System, Inc. operates as a non-asset based provider of freight transportation services and supply chain solutions. It operates in two segments, Transportation Logistics and Insurance. The Transportation Logistics segment provides transportation services, which include truckload and less-than-truckload transportation, rail intermodal, air cargo, ocean cargo, expedited ground and air delivery of time-critical freight, heavy-haul/specialized, U.S.-Canada and U.S.-Mexico cross-border, project cargo, and customs brokerage. It also provides supply chain solutions that comprise integrated multi-modal solutions, outsourced logistics, supply chain engineering, and warehousing, as well as delivers supply chain solutions through a software-as-a-service model. This segment primarily serves automotive products, paper, lumber, metals, chemicals, foodstuffs, heavy machinery, retail, electronics, ammunition and explosives, and military hardware industries, as well as provides tra nsportation services to other transportation companies, including logistics and less-than-truckload service providers. The Insurance segment provides risk and claims management services; reinsures certain risks of the company?s BCO independent contractors; and offers property and casualty insurance. The company provides services to shippers principally in the United States and Canada; between the United States, Canada, and Mexico; and internationally. Landstar System, Inc. was founded in 1968 and is headquartered in Jacksonville, Florida.

Monday, February 17, 2014

Top China Companies To Own In Right Now

More than 20% of total rail carloads stem from the coal industry. Because of this reliance on coal shipments, CSX (NYSE: CSX ) and Norfolk Southern (NYSE: NSC ) each saw revenues from coal shipments drop by double digits in the first quarter of 2013 versus the same quarter last year. This also can't be great news for Warren Buffett's Berkshire Hathaway (NYSE: BRK-A ) , as it owns BNSF railroads, which holds a 33% market share in coal shipments by rail, according to 2012 data.

These companies cater to the eastern United States, which has seen its coal industry hurt to a much greater degree than miners out west, such as Peabody Energy and its Powder River Basin thermal coal production. Coal from this region is produced further down the cost curve and is competitive with much lower natural gas prices than the Appalachian output.

Because exports are becoming a much bigger part of the domestic coal landscape, CSX has chosen to focus on providing greater access to a variety of export terminals. Peabody Energy is just one company that has deals in place to get its cheaper coal from the Powder River and Illinois basins to India, China, and the EU. For investors looking to capitalize on a rebound in the U.S. coal market, The Motley Fool has authored a special new premium report detailing exactly why Peabody Energy is perhaps most worthy of your consideration. Don't miss out on this invaluable resource -- simply click here now to claim your copy today.

Top China Companies To Own In Right Now: Top Image Systems Ltd.(TISA)

Top Image Systems Ltd. provides enterprise solutions for managing and validating content entering organizations from various sources. It develops and markets automated data capture solutions for managing and validating content gathered from customers, trading partners, and employees. The company?s solutions deliver digital content to the applications that drive an enterprise by using technologies, such as wireless communications, servers, form processing, and information recognition systems. It offers eFLOW Unified Content Platform that provides the common architectural infrastructure for its solutions. The company also provides Smart, an automated classification solution, which is the eFLOW plug-in for unstructured content providing single point of entry for information entering the organization; and Freedom, the eFLOW plug-in for semi-structured content that enables customers to identify and capture critical data from semi-structured documents, such as invoices, purchase orders, shipping notes, and checks. In addition, it offers Integra, the eFLOW plug-in for structured content, which provides a solution for data capture, validation, and delivery from structured predefined forms; eFLOW Ability, an integrated module interfacing with SAP systems for automated parking, approval, and posting of invoices and other document within SAP systems; and eFLOW Invoice Reader, an invoice capture and approval solution, which could be deployed and integrated in enterprise accounting environment, such as SAP, Oracle, and other financial systems. Top Image Systems Ltd. sells its products through a network of value-added distributors, systems integrators, original equipment manufacturers, and partners in approximately 40 countries worldwide. It has strategic partnership with SQN Banking Systems (SQN) to incorporate SQN's fraud detection solutions with its eFLOW Banking Platform in the Asia Pacific market. The company was founded in 1991 and is headquartered i n Ramat Gan, Israel.

Top China Companies To Own In Right Now: TAL Education Group(XRS)

TAL Education Group, together with its subsidiaries, provides K-12 after-school tutoring services in the People?s Republic of China. It offers tutoring services to K-12 students covering various academic subjects, including mathematics, English, Chinese, physics, chemistry, and biology. The company provides tutoring services through small classes; personalized premium services, such as one-on-one tutoring; and online course offerings. As of May 31, 2011, it operated a network of 199 physical learning centers in Beijing, Shanghai, Guangzhou, Shenzhen, Tianjin, Wuhan, Nanjing, Hangzhou, Chengdu, and Xi?an; and eduu.com, an online education platform for online courses. The company also offers education and management consulting services, as well as sells software. It operates under the Xueersi brand. The company was founded in 2003 and is headquartered in Beijing, China.

Advisors' Opinion:

[By Lisa Levin]
TAL Education Group (NYSE: XRS) shares rose 4.30% to $20.86. The volume of TAL Education Group shares traded was 318% higher than normal. TAL Education's PEG ratio is 1.14.

Top 5 Cheap Companies To Invest In Right Now: Hampton Roads Bankshares Inc(HMPR)

Hampton Roads Bankshares, Inc. operates as the bank holding company for Bank of Hampton Roads (BOHR) and Shore Bank that provide community and commercial banking services primarily to individuals and small to medium-sized businesses. It offers traditional loan and deposit banking services, as well as telephone banking, Internet banking, remote deposit capture, and debit cards. The company also accepts commercial and consumer deposits that consist of various forms of demand and time accounts, including checking accounts, interest checking, money market accounts, savings accounts, certificates of deposit, and IRA accounts. In addition, it provides a range of commercial, real estate, and consumer lending products and services; commercial and industrial loans; construction loans; real estate-commercial mortgage; real estate-residential mortgage; and installment loans to individuals. Further, the company offers travelers? checks, coin counters, wire services, and safe deposit b ox services. Additionally, it provides letters of credit and standby letters of credit, and cash management products to commercial customers. The company also offers insurance products to businesses and individuals; securities, brokerage, and investment advisory services; and non-deposit investment products, including stocks, bonds, mutual funds, and insurance products, as well as engages in originating and processing mortgage loans. As of June 2, 2011, the company operates 48 banking offices in Virginia and North Carolina; and 8 banking offices in the eastern shore of Maryland and Virginia. It operates a network of sixty-seven ATM machines. The company was founded in 1961 and is headquartered in Norfolk, Virginia.

Top China Companies To Own In Right Now: Suntech Power Holdings Co. LTD.(STP)

Suntech Power Holdings Co., Ltd., a solar energy company, engages in the design, development, manufacture, and marketing of photovoltaic (PV) products. The company also provides engineering, procurement, and construction services to building solar power systems for certain related party and third party customers. Its products include monocrystalline and multicrystalline silicon PV cells; PV modules; and building-integrated photovoltaics products. In addition, the company provides PV system integration services, including designing, installing, and testing PV systems used in lighting for outdoor urban public facilities, as well as in farms, villages, and commercial buildings; and project development services. Its products are used to provide electric power for residential, commercial, industrial, and public utility applications. The company sells its products through value-added resellers, such as distributors and system integrators; and to end users, such as project develo pers primarily in Germany, Italy, Spain, France, Benelux, Greece, the United States, Canada, China, the Middle East, Australia, and Japan. Suntech Power Holdings Co., Ltd. is headquartered in Wuxi, the People?s Republic of China.

Advisors' Opinion:

[By Michael Lewis]
Formerly the biggest maker of solar panels in the world, with more than 10,000 employees, China-based Suntech Power Holdings (NYSE: STP ) has witnessed a long fall from grace. The nail in the coffin came in March, when the company failed to pay a $513 million debt obligation. Shortly following its default, the company sailed into Chinese bankruptcy protection. Fast-forward to this week and the company is trading more than 30% higher on a largely speculative rumor that Warren Buffett is looking to buy it.

Top China Companies To Own In Right Now: CNOOC Limited(CEO)

CNOOC Limited, through its subsidiaries, engages in the exploration, development, production, and sale of crude oil, natural gas, and other petroleum products. The company?s oil and natural gas properties are located in offshore China, which include Bohai Bay, western south China Sea, eastern south China Sea, and east China Sea, as well as in Indonesia, Iraq, and other regions in Asia; and Oceania, Africa, North America, and South America. As of December 31, 2010, the company had net proved reserves of approximately 2.99 billion barrels-of-oil equivalent, including approximately 1.92 billion barrels of crude oil and 6,458.3 billion cubic feet of natural gas. It also provides bond issuance services; and has a joint venture with Bridas Energy Holdings. CNOOC Limited was founded in 1982. The company is headquartered in Central, Hong Kong, and is considered a Red Chip company due to its listing on the Hong Kong Stock Exchange. CNOOC Limited is a subsidiary of China National Of fshore Oil Corporation.

Advisors' Opinion:

[By Jim Jubak]
The auction news isn't good for investors in Brazil's Petrobras (PBR), but it could well be a boon for China and Chinese oil companies such as PetroChina (PTR) and CNOOC (CEO).
[By Monica Wolfe]
These four insiders made their buys during the public offering for $6 per share, and since their buys the price per share is down about -0.83%.� Highlighted below are the insiders��individual buys:
Timothy Keating (CEO):� Bought 8,000 shares for $48,000.� Now holds 98,000 shares of KIPO stock. Taylor Simonton (D):� Bought 3,000 shares for $18,000. Now holds 13,000 shares of KIPO stock. Kyle Rogers (CIO):� Bought 3,072 shares for $18,432.� Now holds 8,096 shares of company stock. Frederic Schweiger (CFO/COO):� Bought 8,000 shares for $48,000.� Now holds on to 26,700 shares of KIPO stock.
[By Arjun Sreekumar]
For instance, Chesapeake's 2010 agreement with China's largest energy company, CNOOC (NYSE: CEO ) , allowed CNOOC to purchase one-third undivided interest in a portion of Chesapeake's Eagle Ford assets in exchange for financing 75% of Chesapeake's drilling and completion expenses.
[By Paul Ausick]
No corporate merger valued at more than $5 billion occurred in 2013, while there were several deals valued at more than $10 billion in 2012. Two of 2012�� biggest deals were Freeport-McMoRan Copper and Gold Inc.�� (NYSE: FCX) acquisition of McMoRan Exploration and Plains Exploration & Production for a total of about $20 billion. Another big acquisition in 2012 was Cnooc Ltd.�� (NYSE: CEO) $15 billion deal for Nexen Energy.

Top China Companies To Own In Right Now: China Gerui Advanced Materials Group Limited(CHOP)

China Gerui Advanced Materials Group Limited engages in the manufacture and sale of cold-rolled narrow strip steel products in the People's Republic of China. The company converts steel manufactured by third parties into thin steel sheets and strips. It sells its products directly to its customers in a range of industries, including food and industrial packaging, construction and household decorations materials, electrical appliances, and telecommunications wires and cables industries. The company was formerly known as Golden Green Enterprises Limited and changed its name to China Gerui Advanced Materials Group Limited in December 2009. China Gerui Advanced Materials Group Limited is based in Zhengzhou, China.

Advisors' Opinion:

[By Jake L'Ecuyer]
Leading and Lagging Sectors
On Tuesday, the basic materials sector proved to be a source of strength for the US market after Yellen statement. Huntsman (NYSE: HUN) shares surged 2.62 percent after reporting strong quarterly earnings, while China Gerui Advanced Materials Group (NASDAQ: CHOP) gained around 2.5 percent.

Top China Companies To Own In Right Now: CNinsure Inc.(CISG)

CNinsure Inc., together with its subsidiaries, provides insurance brokerage and agency services, and insurance claims adjusting services in the People?s Republic of China. The company offers property, casualty, and life insurance products underwritten by domestic and foreign insurance companies operating in China. Its property and casualty insurance products include automobile, individual accident, commercial property, homeowner, cargo, hull, liability, and construction insurance; and life insurance products comprise individual whole life insurance, term life insurance, education annuity, and health insurance, as well as universal insurance and group life insurance. The company also offers insurance claims adjusting services, which include pre-underwriting survey, claims adjusting, disposal of residual value, loading and unloading supervision, and consulting services, as well as damage assessment, survey, authentication, and loss estimation to insurance companies and the i nsured; and value-added services to its customers in conjunction with distributing automobile insurance products. As of April 15, 2010, its distribution and service network consisted of 49 insurance agencies, 3 insurance brokerages, and 4 claims adjusting firms, with 571 sales and service outlets. The company was founded in 1998 and is headquartered in Guangzhou, the People?s Republic of China.

Advisors' Opinion:

[By John Udovich]
China is set to ease the one child policy, something that could benefit Chinese stocks in general but be especially beneficial to insurance stocks like China Life Insurance Company Ltd (NYSE: LFC) and CNinsure Inc (NASDAQ: CISG) plus health care stocks like Mindray Medical International Ltd�(NYSE: MR) and Concord Medical Services Hldg Ltd (NYSE: CCM). First, let�� be clear that China is NOT abolishing the one child policy as the changes will merely�allow married couples to have two children if one spouse is an only child plus it will be up to China�� 34 province-level administrations to revise�their laws and put the new policy into effect. Moreover, China�� family-planning bureaucracy employs more than 500,000 full-time workers and six million part-time workers all the way down to the village level to�collect billions of dollars in fines and these bureaucrats have fought for years against policy changes��meaning they could throw up roadblocks if not placated. With that said, the insurance and health care sectors are two sectors with publicly Chinese stocks that look set to�take advantage of the coming changes.

Top China Companies To Own In Right Now: BHP Billiton Limited(BHP)

BHP Billiton Limited, together with its subsidiaries, operates as a diversified natural resources company worldwide. The company engages in the exploration, development, and production of oil and gas; mining and refining of bauxite into alumina, and smelting of alumina into aluminum metal; and mining of copper, silver, lead, zinc, molybdenum, uranium, gold, diamonds, and titanium minerals, as well as development of potash deposits. It also involves in the mining and production of nickel products, manganese ore, and manganese metal and alloys, as well as in the mining of iron ore, metallurgical coal, and thermal coal. BHP Billiton Limited sells its copper, lead, and zinc concentrates, and alumina to smelters; copper cathodes to wire rod mills, brass mills, and casting plants; uranium oxide to electricity generating utilities; rough diamonds to diamond buyers and diamond manufacturers; nickel products to stainless steel, specialty alloy, foundry, chemicals, and refractory ma terial industries; metallurgical coal to steel producers; and energy coal to power stations, power generators, and industrial users. The company, formerly known as BHP Limited, was founded in 1885 and is headquartered in Melbourne, Australia.

Advisors' Opinion:

[By Ben Levisohn]
Shares of Alcoa have dropped 3.3% to $7.90 today at 9:30 a.m. The downgrade has also hit other aluminum producers this morning. Alumina (AWC) has fallen 1.1% to $3.73, Kaiser Aluminum (KALU) has declined 0.7% to $71.17, and BHP Billiton (BHP), of which aluminum is but a small piece, is off 0.3% at $66.22.

Sunday, February 16, 2014

Will Rising Bond Rates Threaten the Dow?

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

The stock market has performed well so far Friday, as solid figures from the University of Michigan's preliminary consumer sentiment index for February suggested that cold weather and questions about economic strength aren't dampening everyday Americans' views of the economy. That news helped push the Dow Jones Industrials (DJINDICES: ^DJI ) up 75 points by 12:30 EST. But it also led to falling bond prices and higher yields, as bond-market investors ponder whether the same economic concerns that sent the Dow to a minor correction could eventually cause bonds to give up their surprising gains for the year so far -- and cause direct problems for Dow Jones components Goldman Sachs (NYSE: GS ) and JPMorgan Chase (NYSE: JPM ) .

Source: National Archives and Records Administration.

The state of the bond market
This year's gains in the bond market have shocked investors even more than the Dow's decline. After such a strong move in 2013, the Dow was long overdue for some sort of correction, and investors have taken the drop in the average in stride. But the general belief among bond investors was that the Federal Reserve's gradual withdrawal from bond-buying activity under quantitative easing would inevitably lead to higher rates, with the Fed's goal to keep the rise slow and steady to avoid a bond-market rout. Few investors foresaw the potential for an actual drop in rates.

But it was the cause of the Dow's January decline that likely led investors to jump back into the bond market. Sluggishness in the U.S. economy and threats of economic trouble overseas were enough to lead investors back to the safe haven of Treasuries, leading to gains of almost 8% for the iShares 20+ Year Treasury ETF (NYSEMKT: TLT ) by the time the Dow hit bottom on the first trading session of February. Other types of bonds didn't post equally impressive gains, but most did climb somewhat.

As the Dow has recovered over the past couple of weeks, though, bonds have started to give up some of their gains. Initial hopes that the Fed might slow down on its quantitative-easing tapering process have given way to the reality that new Chairwoman Janet Yellen is likely to keep policy moves steady for the foreseeable future. Unless the problems in the U.S. economy turn out to be more than weather-related singular events and spread to create overall long-term weakness for future growth, the central bank doesn't appear likely to prevent at least gradual rises in rates.

Should Dow Jones investors care?
The obvious question is whether rising bond yields will keep being good for stocks. Until now, stock and bond prices have moved in opposite directions in large part because money has flowed between the two asset classes as alternatives for the other. Investors see stocks as a place to invest when they're willing to take risk, while bonds remain the lower-risk bet.

What stock investors ignore, though, is that bond yields can have negative impacts on stocks. In particular, Goldman Sachs, JPMorgan Chase, and other financial stocks have a direct interest in making sure that the bond market performs well. Goldman gets much of its business from bond underwriting and trading activity, while JPMorgan and many other banks maintain extensive portfolios of bonds on their balance sheets. As we saw in mid-2013 when the Fed started discussing the end of quantitative easing, these and other stocks, such as homebuilders, could eventually start reacting negatively if bond rates rise. So before you celebrate higher rates as a necessary price for Dow gains, keep in mind that rates that are too high could eventually hurt stocks as well.

Don't be afraid to invest
No matter what happens to bonds, though, getting out of stocks entirely isn't a smart move. Those who've stayed out of the market in recent years have missed out on huge gains and put their financial futures in jeopardy. In our brand-new special report, "Your Essential Guide to Start Investing Today," The Motley Fool's personal finance experts show you why investing is so important and what you need to do to get started. Click here to get your copy today -- it's absolutely free.

Saturday, February 15, 2014

Microsoft Corporation

A lot of speculation about Microsoft Corporation (MSFT)'s future has emerged surrounding the designation of its new CEO, Satya Nadella. To further increase the guesswork, Bill Gates (Trades, Portfolio) has resigned from his role as Chairman of the Board and now holds the title of Founder and Technology Advisor. His replacement at the Board will be independent director John Thompson, who is expected to impulse more shareholder-friendly decisions than Gates did.

While many investors and analysts were looking forward to an outsider taking over the CEO position, I like the final choice. Nadella, an insider already familiar with the company, should provide a smoother transition (which quite important and difficult in a company as complex as Microsoft is) and help it better navigate the new era of cloud technologies.

In this context, I would like to take a closer look at the company's past: its profitability, debt, capital, and operating efficiency. In addition, I will take a look at which institutional investors have recently bought this stock. Based on this information, we will get an understanding of the Microsoft´s revenues, operating metrics and quality of earnings. As you will see, Microsoft has continued to grow and pay out dividends over the past few years, even in spite of the challenges it has had to face in the mobile, social, cloud, big data, and online advertising segments.

Profitability Analysis

Profitability is a class of financial metric used to analyze a business' ability to generate earnings compared with expenses and other relevant costs incurred during a specific period of time. In this section I will study several profitability metrics, such as return on assets, quality of earnings, cash flows and revenues. By analyzing these four metrics, we will be able to elucidate if the company is really making money.

ROA - Return On Assets = Net Income/Total Assets

ROA is an indicator of how profitable a company is relative to its total assets. It gives an idea as to how efficient management is at using its assets to generate earnings. Calculated by dividing a company's net income by its total assets, ROA is displayed as a percentage. In simple terms, ROA tells you what earnings were generated from invested capital (assets).

I am encouraged by the fact that Microsoft´s ROA has increased from 14.77% to 16.58% in the past three years. This indicates that the company is generating more from its assets than it did in 2011.

Quality of Earnings

Quality of earnings is the amount of earnings attributable to higher sales or lower costs, rather than artificial profits created by accounting anomalies -such as inflation of inventory. In order to assess Microsoft Corporation's quality of earnings we will compare the level of income with operating cash flows.

The company augmented its profits at a rate of 34%, but the growth of cash flows was higher. This is strong evidence of profits not being created through anomalies such as inventory or accounting practices.

Working Capital

Working Capital is a measure of both a company's efficiency and its short-term financial health. This ratio indicates whether a company has enough short term assets to cover its short term debt. Anything below 1 indicates negative W/C (working capital). While anything over 2 means that the company is not investing excess assets. Most believe that a ratio between 1.2 and 2.0 is sufficient.

Microsoft Corporation´s current ratio (working capital measurement) increased from 2.60 in 2011 to 2.71 in 2013. This shows that the company has a strong balance sheet and can pay off its obligations. Looking for companies with current ratios above 1 is a must for long-term investors.

Gross Margin: Gross Income/Sales

The gross profit margin is a measurement of a company's manufacturing and distribution efficiency during the production process. The gross profit tells an investor what percentage of revenue/sales is left after subtracting the cost of goods sold. A company that boasts a higher gross profit margin than its competitors -and overall industry- is more efficient. Investors tend to pay more for businesses that offer higher efficiency ratings than their competitors, as these businesses should be able to make a decent profit as long as overhead costs are controlled (overhead refers to rent, utilities, etc.).

Over the past three years, the gross margin has decreased. The ratio shrank from 77.7% in 2011 to 74.0% in 2013. A decreasing margin indicates that the company has been becoming slightly less efficient year-after-year. Nonetheless, Microsoft's margins (gross, operating and net) are well above its industry's median values.

Asset Turnover

Asset turnover measures a firm's efficiency in using its assets to generate sales or revenue - the higher the number the better. It also indicates pricing strategy: companies with low profit margins tend to have high asset turnover, while those with high profit margins have low asset turnover.

The fact that the revenue growth has outpaced the assets growth (-17% growth) on a percentage basis, indicates that the company is making money on its assets.

Prospects

Microsoft seems to be regaining field in the mobile segment. Recently, Chinese market share figures were made public, and the fourth most popular phone among Chinese users is a Huawei Windows OS phone. Despite this, the challenges in the mobile arena remain. Mr. Nadella will have the big responsibility of successfully integrating Nokia's (NOK) recently purchased handset business.

The future also holds other important decision´s for the tech behemoth´s new CEO, and several questions arise. Will the company be able to revamp its cloud software and enterprise segments? Will Nadella spin off the less-profitable Xbox and Bing?

Although much of this is yet to be determined, the situation looks pretty more encouraging than a few quarters back, especially after the company posted its best quarterly results in recent years.

Valuation

Microsoft's stock trades at only 13.5 times the company's earnings, a substantial discount to the 24.1 x P/E industry median. Despite its cheap valuation, the company still offers industry-leading fundamentals. Even based on conservative EPS growth estimates, this ratio should continue to decrease, while the stock price still swells. However, shares are expected to increase their price by only 8.5% over the next 5 years -which is quite low, compared to an average of 18%-19% projected for its industry peers.

Institutional Investors

I feel encouraged by the fact that George Soros (Trades, Portfolio) and Glenn Greenberg (Trades, Portfolio) bought the stock in the past months at an average price of $33.6. This shows that hedge funds have confidence in the stock.

Analyst Outlook

Currently, many analysts have a good outlook for Microsoft Corporation. Analysts at MSN money are predicting that Microsoft Corporation will retrieve EPS of $2.70 for FY 2013 and EPS of $2.91 for FY 2014. Analysts at Bloomberg are estimating Microsoft Corporation's revenue to be at $84.45B for FY 2013 and $89.79B for FY 2014. On 23/01/2014, Deutsche Bank gave Microsoft Corporation a rating of "Buy" with a target price of $38.33. A $38.33 price target signifies significant upside potential from this point.

Conclusion

From a value perspective, Microsoft is a cheap, safe investment that could slightly outperform the S&P 500 indexes, while paying out a generous dividend yield (more than 3%). Given its moated business and the initiatives to revamp its lagging segments (many of which are already working and providing results, like in the case of Bing and Windows 8), plus a renewed management that has been proving quite effective, I´d recommend buying and holding on to this stock.

Also check out: Bill Gates Undervalued Stocks Bill Gates Top Growth Companies Bill Gates High Yield stocks, and Stocks that Bill Gates keeps buying George Soros Undervalued Stocks George Soros Top Growth Companies George Soros High Yield stocks, and Stocks that George Soros keeps buying

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Wednesday, February 12, 2014

Valentine's Day gift goes up in smoke

Look! Up in the sky! It's a bird! It's a plane! No, it's a pie-in-the-sky Valentine's Day stunt.

Or perhaps, it's the Valentine's Day gift for the person who has everything there is — on the ground. On Thursday, MasterCard will announce plans to link-up with the hot ride app, Uber, which becomes UberSky for the day. They will give away free, on-demand sky writing to up two dozen MasterCard customers on Valentine's Day.

Okay, it's not like Justin Timberlake showing up at your front door for an impromptu jam session — another surprise stunt that MasterCard concocted last month — but it's buzz-worthy, which is the marketing magnet behind it. On a day when most Americans will settle for candy, flowers or perfume, skywriting's got to be a head-turner.

Folks can order-up skywriting messages such as "I LOVE YOU" or 'BE MINE" for Valentine's Day — and MasterCard will take care of the $10,000 or so skywriting bill through a social-media giveaway. Consumers living in four major cities are in the running: New York; Los Angeles; Dallas; and San Diego.

Fast as a Domino's pizza delivery, the brand promises to post the message in the sky within a half hour of the request — weather permitting. It's all about the credit card giant trying to pump new life into its "Priceless" campaign by adding the element of what it calls priceless surprises.

For MasterCard — and for all major brands looking for the eyes and ears of Millennials — the Holy Grail is social-media buzz. By linking up with a Valentine's Day skywriting promo, MasterCard hopes to attract just that. Cardholders who use the hashtag #PricelessSurprises on Twitter on Feb. 14 will be randomly selected for the chance to deliver a personal sky-written message to a loved one.

"It's all about novelty," says Raja Rajamannar, chief marketing officer at MasterCard. "It's about getting consumers to engage with our brand."

One brand guru says the promo could have wings. "The 'Priceless' brand idea lends itself wel! l to using social media," says Allen Adamson, managing director at Landor Associates. "If the winners each have 1,000 followers, it will be $10,000 well spent."

But there is a limit on the number of sky characters: 12.

There's a reason for that — and it's not just price. It takes about two minutes for the aircraft to create each letter. Shortly after 12 characters are made, the first character may begin to dissipate. (Messages last for 30 minutes.)

AirSign, the company posting the messages-in-the-sky on Friday, will have 15 planes up in the air, says CEO Patrick Walsh.

If your V-Day sweetie is an environmentalist, not to worry. A special smoke oil is injected into an exhaust nozzle on the aircraft, which creates the smoke. It's environmentally friendly because it's completely burnt, says Walsh, and even certified by the EPA.