Friday, May 31, 2013

TodayĆ¢€™s 3 Worst Stocks

Stocks tumbled in late trading today, and the S&P 500 Index (SNPINDEX: ^GSPC  ) was no exception. Cratering 23 points, or 1.4% today to close at 1,630, the S&P was still able to eke out gains in May, registering a seventh-straight month of advances, the longest winning streak since markets started rebounding in 2009. Today's broad market declines, however, were still outdone by the severe drops in today's three laggards.

Filtration systems producer Pall (NYSE: PLL  ) leads off today's list, having slumped 5.1%. The company reported quarterly results after the markets closed yesterday, and investors were underwhelmed. Sales didn't live up to expectations, although earnings actually beat estimates. The company's outlook really stung shares: Pall said that European expansion was going well, while operations in China were sluggish. Apart from that being the inverse version of what Wall Street wanted to hear, the company also lowered guidance for the fiscal year.

Shares in SAIC (NYSE: SAI  ) fell 4.9% Friday, the last full day of trading before Monday's quarterly report. Shareholders panicked today ahead of the announcement; analysts are calling for earnings to slide nearly 25% from year-ago levels, while revenue is projected to fall by 7%. However, it appears today's fall has more to do with the broad sell-off on Wall Street than the company itself; shares were up more than 3% after hours.

Lastly, biotech Amgen (NASDAQ: AMGN  ) slipped 4.5% today, as the health-care sector ended as the worst performing area of the markets Friday. As fellow Fool contributor Maxx Chatsko points out, Amgen is due to be coming up against competition from generic drugs in upcoming years for some of its most successful products as the remedies come off patent.

While looking at 2012 performance is useful, 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.

Thursday, May 30, 2013

How New Jersey Resources is Bringing Bucks Home More Quickly

It takes money to make money. Most investors know that, but with business media so focused on the "how much," very few investors bother to ask, "How fast?"

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 New Jersey Resources (NYSE: NJR  ) .

Let's break this down
In this series, we measure how swiftly a company turns cash into goods or services and back into cash. We'll use a quick, relatively foolproof tool known as the cash conversion cycle, or CCC for short.

Why does the CCC matter? The less time it takes a firm to convert outgoing cash into incoming cash, the more powerful and flexible its profit engine is. The less money tied up in inventory and accounts receivable, the more available to grow the company, pay investors, or both.

To calculate the cash conversion cycle, add days inventory outstanding to days sales outstanding, then subtract days payable outstanding. Like golf, the lower your score here, the better. The CCC figure for New Jersey Resources for the trailing 12 months is 26.8.

For younger, fast-growth companies, the CCC can give you valuable insight into the sustainability of that growth. A company that's taking longer to make cash may need to tap financing to keep its momentum. For older, mature companies, the CCC can tell you how well the company is managed. Firms that begin to lose control of the CCC may be losing their clout with their suppliers (who might be demanding stricter payment terms) and customers (who might be demanding more generous terms). This can sometimes be an important signal of future distress -- one most investors are likely to miss.

In this series, I'm most interested in comparing a company's CCC to its prior performance. Here's where I believe all investors need to become trend-watchers. Sure, there may be legitimate reasons for an increase in the CCC, but all things being equal, I want to see this number stay steady or move downward over time.

Source: S&P Capital IQ. Dollar amounts in millions. FY = fiscal year. TTM = trailing 12 months.

Because of the seasonality in some businesses, the CCC for the TTM period may not be strictly comparable to the fiscal-year periods shown in the chart. Even the steadiest-looking businesses on an annual basis will experience some quarterly fluctuations in the CCC. To get an understanding of the usual ebb and flow at New Jersey Resources, consult the quarterly-period chart below.

Source: S&P Capital IQ. Dollar amounts in millions. FQ = fiscal quarter.

On a 12-month basis, the trend at New Jersey Resources looks very good. At 26.8 days, it is 5.0 days better than the five-year average of 31.8 days. The biggest contributor to that improvement was DIO, which improved 23.1 days compared to the five-year average. That was partially offset by a 18.3-day increase in DSO.

Considering the numbers on a quarterly basis, the CCC trend at New Jersey Resources looks good. At 20.7 days, it is 9.6 days better than the average of the past eight quarters. With both 12-month and quarterly CCC running better than average, New Jersey Resources gets high marks in this cash-conversion checkup.

Though the CCC can take a little work to calculate, it's definitely worth watching every quarter. You'll be better informed about potential problems, and you'll improve your odds of finding underappreciated home run stocks.

Can your retirement portfolio provide you with enough income to last? You'll need more than New Jersey Resources. Learn about crafting a smarter retirement plan in "The Shocking Can't-Miss Truth About Your Retirement." Click here for instant access to this free report.

Add New Jersey Resources to My Watchlist.

Top 10 Net Payout Yield Companies To Buy For 2014

Exchange-traded funds offer a convenient way to invest in sectors or niches that interest you. If you'd like to add some metals and mining stocks to your portfolio, the iShares MSCI Global Select Metals & Mining Producers ETF (NYSEMKT: PICK  ) could save you a lot of trouble. Instead of trying to figure out which companies will perform best, you can use this ETF to invest in lots of them simultaneously.

The basics
ETFs often sport lower expense ratios than their mutual fund cousins. The iShares ETF's expense ratio -- its annual fee -- is a relatively low 0.39%. The fund is fairly small, too, so if you're thinking of buying, beware of possibly large spreads between its bid and ask prices. Consider using a limit order if you want to buy in.

This ETF is too young to permit an assessment of its performance. As with most investments, of course, we can't expect outstanding performances in every quarter or year. Investors with conviction need to wait for their holdings to deliver.

Top 10 Net Payout Yield Companies To Buy For 2014: Foran Mining Corporation(FOM.V)

Foran Mining Corporation engages in the acquisition, exploration, and development of mineral properties in the Flin Flon and Snow Lake mining belts of central Canada. The company primarily explores for zinc, copper, gold, and silver, as well as other base metals. Its principal property includes a 100% interest in the McIlvenna Bay property consisting of 30 claims covering 20,382 hectares located in east central Saskatchewan, west of Flin Flon, Manitoba. Foran Mining Corporation was founded in 1989 and is headquartered in Vancouver, Canada.

Top 10 Net Payout Yield Companies To Buy For 2014: Olympic Steel Inc.(ZEUS)

Olympic Steel, Inc. engages in the processing and distribution of metal products in the United States. It offers flat products and tubular and pipe products, including processed carbon, coated, aluminum and stainless flat-rolled sheet, coil, and plate; and metal tubing, pipe, bar, valves, and fittings and fabricate pressure parts. The company also provides various processing services comprising cutting-to-length, slitting, sawing, and shearing; and value-added processes of blanking, tempering, plate burning, laser cutting, precision machining, welding, fabricating, bending, and painting to process metal to specified lengths, widths, and shapes. It serves metal consuming industries, such as manufacturers and fabricators of transportation and material handling equipment, construction and farm machinery, storage tanks, environmental and energy generation equipment, automobiles, food service and electrical equipment, and military vehicles and equipment, as well as general and plate fabricators and metals service centers through direct sales force. Olympic Steel, Inc. was founded in 1954 and is headquartered in Bedford Heights, Ohio.

Hot Healthcare Technology Companies To Buy For 2014: China BAK Battery Inc.(CBAK)

China BAK Battery, Inc., together with its subsidiaries, engages in the manufacture, commercialization, and distribution of various standard and customized lithium ion rechargeable batteries. The company offers various products, including aluminum-case prismatic, cylindrical, lithium polymer, and high-power lithium battery cells. Its battery cells are the principal component of rechargeable batteries used to power cellular phones and smart phones; notebook computers, tablet computers, and e-book readers; portable consumer electronics, such as digital cameras, portable media players, portable gaming devices, personal digital assistants, camcorders, and Bluetooth headsets; and electric bicycles, light electric vehicles, hybrid electric vehicles, cordless power tools, and uninterruptible power supplies. The company serves battery pack manufacturers, original equipment manufactures, and replacement battery manufacturers primarily in the People?s Republic of China, Taiwan, Hon g Kong, India, the United States, the Middle East, Italy, Germany, and Turkey. China BAK Battery, Inc. was founded in 2001 and is based in Shenzhen, China.

Top 10 Net Payout Yield Companies To Buy For 2014: Norseman Gold Plc(NGX.AX)

Norseman Gold plc, through its subsidiary, Central Norseman Gold Corporation Limited, engages in the exploration and development of mineral resources in Australia. The company primarily focuses on gold and silver. It holds interests in the Norseman project covering an area of approximately 2,360 square kilometers comprising 221 tenements that consist of 85 exploration licences, 5 exploration licence applications, 108 mining leases, 3 prospecting licences, 4 prospecting licence applications, 15 miscellaneous licences, and 1 mining lease application located in the southern extent of the Norseman-Wiluna Greenstone Belt of the Eastern Goldfields Province of the Yilgarn Block, Western Australia. The company also holds the Fraser Range projects comprising iron ore located south-east of Norseman. Norseman Gold plc was founded in 2006 and is headquartered in Burswood, Australia.

Top 10 Net Payout Yield Companies To Buy For 2014: Electrometals Technologies Ltd(EMM.AX)

Electrometals Technologies Limited designs, manufactures, and sells patented EMEW electrowinning equipment for the metals processing industry primarily in Australia and Canada. The company?s EMEW technology is used for the recovery of metals, such as gold, silver, platinum, cadmium, cobalt, copper, nickel, tin, zinc, lead, manganese, and various other metals. It also offers various services that include laboratory and test programs, pilot programs, flowsheet and general process development, feasibility studies, and general mining and industrial metal recovery consulting. The company markets its products directly and through agents and partners. Electrometals Technologies Limited is headquartered in Ashmore, Australia. As of June 1, 2011, Electrometals Technologies Ltd. operates as a subsidiary of Waverton Holdings, Ltd.

Top 10 Net Payout Yield Companies To Buy For 2014: DSP Group Inc.(DSPG)

DSP Group, Inc. provides wireless chipset solutions for converged communications at home. It enables consumer electronics (CE) manufacturers to develop new applications through system solutions that combine semiconductors and software with reference designs. The company offers solutions supporting various major digital cordless technologies with a primary share in the wireless home telephony market. It provides a portfolio of wireless chipsets integrating digital enhanced cordless telecommunications, Wi-Fi, public switched telephone network, and voice over Internet protocol (VoIP)/communications over Internet Protocol technologies with application and multimedia processors. The company?s products enables converged voice, audio, video, and data connectivity across various consumer products, including cordless and VoIP phones, home gateways and broadband multimedia terminals, and home automation and wireless audio to fixed mobile convergence offerings, as well as partners w ith CE manufacturers to provide converged communications at home. It markets its products through direct sales and marketing offices, as well as through a network of distributors to CE brands, original equipment manufacturers, original design manufacturers, telecommunications operators, and service providers primarily in the United States, Japan, Europe, Hong Kong, and Korea. The company was founded in 1979 and is based in San Jose, California.

Top 10 Net Payout Yield Companies To Buy For 2014: M Health Ltd(MHL.AX)

Orca Energy Limited engages in the exploration and evaluation of minerals, oil and gas, and uranium opportunities in Australia and Kyrgyzstan. The company holds a 22.5% interest in the East Kokmoinok Uranium license in the Kyrgyz Republic; and 100% interest in three petroleum licenses covering an area of approximately 6,000 square kilometers located in the Kyrgyz Republic. It also holds licenses in the onshore Cooper Basin, South Australia. The company was formerly known as Monitor Energy Limited and changed its name Orca Energy Limited in August 2011. Orca Energy Limited was incorporated in 1985 and is based in West Perth, Australia.

Top 10 Net Payout Yield Companies To Buy For 2014: Labtech Systems Ltd (LBT.AX)

LBT Innovations Limited involves in the research and development of technologies for the healthcare and laboratory supply markets primarily in Australia. It offers MicroStreak technology that enables an automated system for streaking biological samples onto agar plates; and automated plate assessment system, a platform technology for the automation of culture plate screening and interpretation. The company was formerly known as LabTech Systems Ltd and changed its name to LBT Innovations Limited in December 2009. LBT Innovations Limited was founded in 2004 and is based in Adelaide, Australia.

Top 10 Net Payout Yield Companies To Buy For 2014: EXCO Resources NL(XCO)

EXCO Resources, Inc., an independent oil and natural gas company, engages in the exploration, exploitation, development, and production of onshore North American oil and natural gas properties with a focus on shale resource plays. The company holds interests in various projects located in East Texas, North Louisiana, Appalachia, and the Permian Basin in west Texas. As of December 31, 2010, it had proved reserves of approximately 1.5 trillion cubic feet equivalent; and operated 7,276 wells. The company was founded in 1955 and is based in Dallas, Texas.

Advisors' Opinion:
  • [By Quickel]

    Exco Resources, Inc. (XCO) is trading around $10.70. Exco is an onshore North American oil and natural gas company, and is based in New York. These shares have traded in a range between $9.33 to $21.04 in th e last 52 weeks. XCO is estimated to earn about 78 cents per share in 2011. XCO pays a dividend of 16 cents per share which is equivalent to a 1.5% yield. The book value is stated at $7.69. In 2011, Barclays Capital set a price target of $23 per share for XCO.

Top 10 Net Payout Yield Companies To Buy For 2014: Colony Bankcorp Inc.(CBAN)

Colony Bankcorp, Inc. operates as a bank holding company for Colony Bank that provides commercial, consumer, and mortgage banking services for consumers and small to medium size businesses in the middle and south Georgia. It offers various deposit products, including demand, savings, and time deposits. The company also provides loans to small and medium-sized businesses; residential and commercial construction, and land development loans; commercial real estate loans; commercial loans; agri-business and production loans; residential mortgage loans; home equity loans; and consumer loans. In addition, it offers Internet banking services, electronic bill payment services, safe deposit box rentals, telephone banking, credit and debit card services, and remote depository products; and access to a network of ATMs. The company provides its banking services through its 30 offices located in the cities of Fitzgerald, Warner Robins, Centerville, Ashburn, Leesburg, Cordele, Albany, T homaston, Columbus, Sylvester, Tifton, Moultrie, Douglas, Broxton, Savannah, Eastman, Chester, Soperton, Rochelle, Pitts, Quitman, and Valdosta, Georgia. Colony Bankcorp, Inc. was founded in 1975 and is headquartered in Fitzgerald, Georgia.

Wednesday, May 29, 2013

Top 5 Cheap Stocks To Own For 2014

 If you're long tech stocks, you now have a powerful market phenomenon on your side...
 
As we reminded you two weeks ago, many of the world's dominant tech companies – like Apple, Microsoft, Cisco, and Intel – are trading for cheap valuations right now, especially once you take their big cash hoards into consideration.
 
And over the past few weeks, the market phenomenon known as "acting well" has come into play...
 
 
 When we say an asset is "acting well," we mean that it's advancing – rather than declining – in the face of bad news.

Top 5 Cheap Stocks To Own For 2014: Lattice Semiconductor Corporation(LSCC)

Lattice Semiconductor Corporation designs, develops, manufactures, and markets programmable logic products and related software. The company offers field programmable gate array (FPGA) products, including LatticeECP family for deployment in wireless infrastructure and wireline access equipment, as well as in video and imaging applications; and LatticeXP for the security, surveillance, and display markets. It also provides programmable logic device (PLD) products comprising various versions of ispMACH4000 in-system programmable complex programmable logic device family; MachXO family that is designed for a range of low density applications; platform manager, power manager, and ispClock programmable mixed signal devices; and software development tools and intellectual property cores. The company sells its products directly to end customers through a network of independent manufacturers? representatives and indirectly through a network of independent sell-in and sell-through distributors. It primarily serves original equipment manufacturers in the communications, computing, consumer, industrial, military, automotive, and medical end markets. The company was founded in 1983 and is headquartered in Hillsboro, Oregon.

Advisors' Opinion:
  • [By Nancy Zambell]

    A survivor of the tech boom and bust cycle, Lattice Semiconductor Corp. (NASDAQ: LSCC) has managed to consistently grow its new product revenue by 28% per quarter since 2006. And that astounding figure includes one of the worst recessions in our history, as well as a downturn in the semiconductor market. The company’s primary customers are original equipment manufacturers (OEMs) in the communications, computing, consumer, industrial, automotive, medical and military end markets. Its strongest markets include the fastest-growing segments in our economy today.

    LSCC intends to focus on aggressively expanding its mid-range markets, as well as its products for lower-power, lower-cost applications. It also plans to continue targeting customized solutions for its customers, all the while, continuing to increase its flow of new product growth and entry into new markets.

Top 5 Cheap Stocks To Own For 2014: Local.com Corporation(LOCM)

Local.com Corporation operates as an Internet search advertising company that enables businesses and consumers to find each other and connect locally. Its Owned and Operated business unit manages its flagship online property Local.com and a proprietary network of approximately 20,000 local Websites that reach approximately 15 million monthly unique visitors. The company places various display, performance, and subscription advertisement products on its Local.com and proprietary network. Its Network business unit operates a private label local syndication network of approximately 1,000 U.S. regional media Websites; 80,000 third-party local Websites; and its own organic feed of local businesses plus third-party advertising feeds that focus primarily on local consumers to a distribution network of hundreds of Websites. The company?s Sales and Ad Services business unit provides approximately 45,000 direct monthly subscribers with Web hosting or Web listing products. The compan y was formerly known as Interchange Corporation and changed its name to Local.com Corporation in November 2006. Local.com Corporation was founded in 1999 and is headquarters in Irvine, California.

Top 5 Clean Energy Companies To Watch For 2014: SMTC Corporation(SMTX)

SMTC Corporation provides advanced electronics manufacturing services to original equipment manufacturers (OEMs) worldwide. The company?s services include product design and engineering services, printed circuit board assembly production, enclosure fabrication, systems integration, testing, and configuration services. It also provides enclosure and precision metal fabrication, cable assembly, interconnect, and engineering design services. The company offers its integrated contract manufacturing services to OEMs and technology companies primarily in the industrial, computing and networking, communications, consumer, and medical market segments. SMTC Corporation was founded in 1985 and is based in Markham, Canada.

Advisors' Opinion:
  • [By Paul]

    SMTC Corp. (NASDAQ: SMTX) is a Canadian company that provides contract electronics manufacturing services, such as surface-mount and through-hole circuit board assembly, product design, testing, packaging and supply chain management. Manufacturers use products built or assembled by SMTC in their computer servers, networking devices or communications products.

    In its most recent earnings report, the company said Q3 sales rose 48% in the quarter to $65.4 million, and earnings per share were 16 cents, up from 3 cents in the same quarter of 2009. Eight of its top 10 customers increased orders as a result of strong market demand for electronics manufacturing. The addition of five new clients added $10 million to the company’s sales in the quarter. SMTX’s year-over-year gross profit more than doubled to $7.9 million, as a result. Generated cash flow reached $4.6 million and the company used much of this extra cash to pay down debt. That’s why SMTX’s debt was just $18 million at the end of the quarter, the lowest level in the company’s history.

    SMTX is in an excellent position to profit from increasing electronics and technology demand, which will continue to climb next year. Buy SMTX below $4.

Top 5 Cheap Stocks To Own For 2014: Kimber Resources Inc(KBX)

Kimber Resources Inc., a junior mineral resource company, engages in the acquisition, exploration, and development of mineral resource properties in Mexico. The company primarily explores for gold and silver deposits. Its principal property includes the Monterde Property, which consists of 35 mineral concessions totaling approximately 29,296 hectares located in the Sierra Madre mountains of southwestern Chihuahua State. Kimber Resources Inc. was founded in 1995 and is headquartered in Vancouver, Canada.

Advisors' Opinion:
  • [By Louis Navellier]

    Based in Canada, junior mineral resource company Kimber Resources Inc. (AMEX: KBX) engages in the acquisition, exploration and development of mineral resource properties, primarily gold and silver deposits in Mexico. Currently, this exploration-stage company is trading on the higher end of its 52-week range of 60 cents to $2.17. Even after pulling back over the last few days, this penny stock is up almost 17% year to date, and 59% in the past 12 months. If you’re looking to add a penny stock to your portfolio, this little mining stock has the ability to bring quick gains your way.

  • [By Louis]

    Exploration-stage gold and silver company Kimber Resources Inc. (KBX) has gained 26% year to date, and is up 58% in the past year. At $1.67, this penny stock is worth a close look for potential investors. The stock's 52-week range is 60 cents to $2.17.

Top 5 Cheap Stocks To Own For 2014: Gold Reserve Inc(GRZ)

Gold Reserve Inc., an exploration stage company, engages in the acquisition, exploration, and development of mining projects. The company was founded in 1956 and is based in Spokane, Washington.

Advisors' Opinion:
  • [By Louis Navellier]

    Another exploration-stage mining company making the list is Gold Reserve Inc. (AMEX: GRZ), which has gained 18% in the last six months and 69% in the last 12 months. Buy this stock as it trades near its 52-week high of $1.95.

  • [By Michael]

    Based in South America,  a young exploration company, Gold Reserve Inc. (AMEX: GRZ). GRZ acquires, explores and develops mining projects in South America.  GRZ was alerted at a low price of $0.61 and has climb steadily to $2.25 as more discoveries are made, amounting to over a 200% gain in one year.

Tuesday, May 28, 2013

Best Consumer Stocks To Watch For 2014

If there's one health-care stock every investor knows by name, it's Johnson & Johnson (NYSE: JNJ  ) . This industry titan makes everything from consumer health products to medical devices to pharmaceuticals, reaching into every niche of the medical sector. It's a strong dividend stock with a history of stability -- there's seemingly some perk for every �J&J�investor.

However, growth investors might want to take a look elsewhere. For all J&J does right, it's anything but a fast-growing, chart-topping stock for those looking for the best possible annual returns. While J&J isn't short on financial growth and makes a great foundation for any portfolio, a few key trends should make growth investors think twice before doubling up on shares.

Core businesses, slow growth
J&J is much more than a medicine company, and is far more diverse than its Big Pharma rivals. It is heavily reliant on sales of consumer health products and medical devices. In 2012, these two segments made up more than 62% of all revenue.

Best Consumer Stocks To Watch For 2014: E2V TECHNOLOGIES ORD GBP0.05(E2V.L)

e2v technologies plc engages in the development and manufacture of electronic components and sub-systems for the medical and science, aerospace and defense, and commercial and industrial markets. Its RF power solutions segment offers electronic devices and sub-systems used in defense electronic countermeasures, radiotherapy cancer treatment machines, radar systems, satellite communications amplifiers, industrial heating, cargo screening, bulk materials processing, missile control safety and arming devices, and digital television transmitters. The company?s High performance imaging solutions segment provides charged coupled devices and complimentary metal oxide semiconductor imaging sensors, and cameras used in a range of applications, such as space and earth observation imaging, science and life science imaging, machine vision, ophthalmology, and dental x-ray systems, as well as fire, rescue, and security thermal imaging. Its Hi-rel semiconductor solutions segment offers microprocessors, data converters, and MRAMs; and assembly and test, and semiconductor lifecycle management services. The company?s product portfolio includes coupled cavity and helix TWTs, gridded and inductive output tubes, industrial processing systems, klystrons, magnetrons, microwave devices, modulators, safety and arming devices, spark gaps, amplifiers, thyratrons, automotive air quality sensors, and x-ray spectroscopy detectors. It offers its products through a network of agents and distributors primarily in the Europe, North America, the Asia Pacific, and rest of the world. The company was formerly known as Marconi Applied Technologies and changed its name to e2v technologies plc in July 2002. e2v technologies plc was founded in 1944 and is headquartered in Chelmsford, the United Kingdom.

Best Consumer Stocks To Watch For 2014: Stoneridge Inc.(SRI)

Stoneridge, Inc., together with its subsidiaries, engages in the design and manufacture of engineered electrical and electronic components, modules, and systems for the medium and heavy-duty truck, automotive, agricultural, and off-highway vehicle markets primarily in North America and Europe. The company operates in two segments, Electronics and Control Devices. The Electronics segment produces electronic instrument clusters, electronic control units, and driver information systems, as well as electrical distribution systems, principally wiring harnesses and connectors for electrical power and signal distribution. Its products collect, store, and display vehicle information, such as speed, pressure, maintenance data, trip information, operator performance, temperature, distance traveled, and driver messages related to vehicle performance. In addition, this segment?s power distribution systems regulate, coordinate, and direct the operation of the electrical system within a vehicle. The Control Devices segment designs and manufactures products that monitor, measure, or activate a specific function within the vehicle. This segment?s product lines include sensors, which are employed in a range of vehicle systems, such as the emissions, safety, power train, braking, climate control, steering, and suspension systems; switches that transmit signal to activate or deactivate selected functions; and electromechanical actuator products, which enable original equipment manufacturers to deploy power functions in a vehicle. Stoneridge, Inc. was founded in 1965 and is headquartered in Warren, Ohio.

Advisors' Opinion:
  • [By Stephen]

    Stoneridge, Inc. is an independent designer and manufacturer of highly engineered electrical and electronic components, modules and systems for the medium- and heavy-duty truck, automotive, agricultural and off-highway vehicle markets. Its EPS forecast for the current year is 1.19 and next year is 1.84. According to consensus estimates, its topline is expected to grow 15.57% current year and 17.53% next year. It is trading at a forward P/E of 7.82. Out of three analysts covering the company, two are positive and have buy recommendations and the other has a hold rating.

5 Best Canadian Stocks To Invest In 2014: Leapfrog Enterprises Inc(LF)

LeapFrog Enterprises, Inc. designs, develops, and markets technology-based learning platforms and related proprietary content primarily for infants and children worldwide. The company offers interactive reading systems, such as the Tag reading system that focuses on fundamental reading skills and offers a library of software-based books; and Tag Junior reading system used for the introduction of younger children to books and reading. It also provides mobile learning system products, including Leapster platform, a handheld device with a multi-directional control pad and a touch-screen enabled by a built-in stylus; Leapster2 platform, a Web-connected version of Leapster; and Leapster Explorer to download digital content, such as games, e-Books, videos and flash cards. In addition, the company offers Scout collection, a line of learning toys that are Web-enabled and connect to the Learning Path; and My Own Leaptop, a Web-enabled customizable laptop; Fridge Collection, a line of magnetic learning toys that introduce letter names, letter sounds, spelling, and songs; Learn and Groove Collection, which include bilingual musical learning toys; and various products that address basic learning needs and milestones. Further, it provides LeapFrog Learning Path, an online tool enabling parents to track what their children are learning with Web-connected products; and LeapWorld, which allows children to play online games, customize their mobile learning and gaming experiences, access new content, watch trailers for new games, and view demonstrations. It sells its products directly to national and regional mass-market and specialty retailers; other retail stores and distributors; school-related distributors and resellers; and through online store and other Internet-based channels. The company was founded in 1995 and is headquartered in Emeryville, California. LeapFrog Enterprises, Inc. is a subsidiary of Mollusk Holdings, LLC.

Best Consumer Stocks To Watch For 2014: A.s. Roma(ASR.MI)

A.S. ROMA S.P.A. owns and operates a football club. The company was founded in 1927 and is based in Rome, Italy. A.S. ROMA S.P.A. operates as a subsidiary of NEEP Roma Holding spa.

Monday, May 27, 2013

Why Polymetal International, Fresnillo, and Eurasian Natural Resources Should Lag the FTSE 100 Today

LONDON -- The FTSE 100 (FTSEINDICES: ^FTSE  ) has seen little change this morning, down 0.15% to 6,713 as of 8:45 a.m. EDT, but it remains close to the its 10-year high of 6,732.4, set in June 2007.

So which companies are holding back the indexes today? Here are three whose share prices are falling and look set to lag the wider market.

Polymetal (LSE: POLY  )
London-listed gold and silver producer Polymetal International is down 4.3%, continuing its fall since the turn of the year, when it was trading for as much as 1,218 pence -- today it stands at 606 pence.

Linked with the price of gold, which has been plummeting recently following the record prices in recent years, the likes of Polymetal are looking to cut costs ahead of further drops in the price of the precious metal.

Fresnillo (LSE: FRES  )
Miners are not in fashion, and especially not gold and silver producers. Fresnillo isn't faring too well, either: Its shares are down 2.7% at the time of writing.

Many of the reasons for Polymetal's underperformance apply also to Fresnillo, which relies on the price of gold faring well. The beginning of the year saw it trade at about 1,810 pence, while it can now be picked up for 1,040 pence.

Eurasian Natural Resources (LSE: ENRC  )  
Completing the set, shares in Eurasian Natural Resources have fallen 2.7% in early trade. This follows the announcement that a rejected consortium bid, announced last week, valued the company at 260 pence (comprising 175 pence in cash and 0.231 of an existing Kazakhmys share for each ENRC share).

The consortium consisted of Kazakhstan's government and ENRC's co-founders, and a successful bid would have cost about $4.8 billion. The consortium now has until June 3 to "either announce a firm intention to make an offer for the Company in accordance with the Code or announce that they do not intend to make an offer."

Finally, reliable dividends can more than compensate for the day-to-day ups and downs of share prices. So how about a company that's offering a 5% yield and could be set for some nice share-price appreciation, too? It's the subject of our brand-new report "The Motley Fool's Top Income Share For 2013," which you can get completely free of charge -- but it will only be available for a limited period, so click here to get your copy today.

Sunday, May 26, 2013

Annaly Capital Management: Bullish or Bearish?

The Federal Reserve's commitment to its QE programs has thrust mREITs into the spotlight as it continues to buy mortgage-backed securities at a record pace. Investors are beginning to worry how the Fed will wind down the program and how that will impact the mREITs.

Annaly Capital Management (NYSE: NLY  ) is the largest mREIT, and its management team has been carefully navigating the current environment. In this video, Motley Fool financial analysts David Hanson and Matt Koppenheffer debate the two sides of the story.

There's no question Annaly Capital's double-digit dividend is eye-catching. But can investors count on that payout sticking around? With the Federal Reserve keeping interest rates at historically low levels, Annaly has had to scramble to defend its bottom line. In The Motley Fool's premium research report on Annaly, senior analysts Ilan Moscovitz and Matt Koppenheffer uncover the key challenges the company faces and divulge three reasons investors may consider buying it. Simply click here now to claim your copy today!

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More Expert Advice from The Motley Fool
The Motley Fool's chief investment officer has selected his No. 1 stock for the next year. Find out which stock in our brand-new free report: "The Motley Fool's Top Stock for 2013." I invite you to take a copy, free for a limited time. Just click here to access the report and find out the name of this under-the-radar company.

Saturday, May 25, 2013

One Way MAKO Surgical Could Quadruple

It seems an understatement to say MAKO Surgical  (NASDAQ: MAKO  ) has fallen hard from its March 2012 high of nearly $44 per share. To be sure, from MAKO's current price of around $11.50 per share, the stock would need to nearly quadruple for investors who bought at the peak to recoup their losses:

MAKO Total Return Price Chart

MAKO Total Return Price data by YCharts.

Been there, done that
The thing is, when you zoom out a bit, you can see that anyone who bought shares of MAKO a mere 18 months earlier is actually sitting on a more than 21% gain -- albeit only after enduring one heck of a ride in the meantime:

MAKO Total Return Price Chart

MAKO Total Return Price data by YCharts.

So what would it take for MAKO to regain its former glory?

Well, for one, remember much of that meteoric rise was the direct result of over-enthusiastic RIO system sales projections, and we all remember what happened when the company failed to live up to those expectations.

In fact, some shareholders were so furious about the ensuing drop that they filed a class action lawsuit, in which they alleged they were misled by management. Of course, I just noted yesterday one such case was dismissed thanks to MAKO's "forward-looking statements" clauses, but the damage to management's rapport with investors remains evident even after the company posted two consecutive decent quarters.

Then again, the reason investors were so excited about higher system sales in the first place wasn't the significant upfront revenue benefit, but rather the resulting long-term increase in the number of procedures. You see, each time a surgery is performed using MAKO's RIO platform, the company benefits to the tune of roughly $5,000 in recurring revenue from the sale of instruments and implants.

So what's the problem?
However, surgeons can currently only perform two different types of procedures using MAKO's system -- partial knee replacements and total hip arthroplasty.

Even then, considering that MAKO only just introduced the hip solution in September 2011, only 65% of the 156 systems currently in place are equipped to enable THA. As a result, only 467 of the 2,988 procedures performed last quarter were hip replacements. On a positive note, that did represent an 18.2% sequential increase over the previous quarter, which shows that hospitals are finally beginning to utilize MAKO's hip replacement tech on a greater sale.

Still, customers who owned MAKO's RIO robots in 2012 only performed an average of just 6.7 monthly procedures per system last year, and monthly utilization per site fell to 6.6 procedures last quarter. By contrast, consider MAKO's soft-tissue counterpart in Intuitive Surgical  (NASDAQ: ISRG  ) , whose customers performed around 13 procedures per month last year with each of Intuitive's da Vinci robots. 

A better way
Of course, while the folks at MAKO can obviously increase the number of total procedures performed by selling new systems, that's easier said than done given the RIO's seven-figure price point. Until that growth avenue picks up more steam, then, you can bet MAKO will focus on increasing utilization. 

How, then, does Intuitive Surgical manage to maintain such high monthly utilization numbers? Thanks in part to the complementary instrumental requirements of many soft-tissue surgeries, surgeons are able to perform literally dozens of different procedures using Intuitive's da Vinci platform.

That's exactly why one of the four big questions I posed going into MAKO's fourth-quarter report earlier this year revolved around whether the company had news on the development of new surgery types for the RIO. As I noted at the time, CEO Maurice Ferre did tell investors last November the company was working on a total knee replacement solution, but he also warned at the same time we shouldn't expect to see it in the near future.

Then again, when the company (mostly) answered my questions in February, management elaborated one of their "key operative priorities in 2013" was to continue collecting and analyzing user feedback and use it to "further enhance [their] product offering."

In fact, one of the yet-to-be-officially mentioned technologies that I'm waiting to hear about from MAKO is a shoulder replacement procedure. As I first noted last October, San Francisco Surgery Center Administrator Jeff Wong even stated the following in a Q&A session last August: "While we have focused exclusively on partial knee replacements up till now, we anticipate leveraging the robot for hip replacements and possibly shoulder repairs in the near future."

Call me crazy, but that doesn't seem like something one would say without at least having a conversation about it first with the minds at MAKO Surgical.

Foolish final thoughts
In the end, when MAKO eventually announces one or more new procedure types while continuing to increase the number of hip procedures performed, I see no reason why the resulting enthusiasm couldn't push the stock back near all-time highs. However, remember that this a long-term speculative bet that won't happen overnight, so, as always, patience is key to realizing big profits with this young stock.

If you'd like to know more about MAKO Surgical, Fool.com analyst and MAKO expert David Meier has authored a premium research report covering all of the must-know details on the company, including key areas to watch and risks looming in the future for the medical robotics company. Claim your copy by clicking here now.


Most Emerging Stocks Drop as Commodity Producers Tumble

Most emerging stocks fell, capping a second weekly drop, as a slump in commodities sank producers from OAO Gazprom to Vale SA. Hungary's benchmark index jumped to a three-month high as the nation published its budget plans.

Gazprom, Russia's state-controlled natural gas producer, retreated 1.5 percent, while iron-ore producer Vale slumped for a third day. Anadolu Efes Biracilik & Malt Sanayii AS, Turkey's biggest brewer, tumbled 7.6 percent after the nation's parliament approved a law banning retail alcohol sales at night and promotion of alcoholic drinks. OTP Bank Nyrt. paced gains in Hungary and the forint extended its advance.

The MSCI Emerging Markets Index rose less than 0.1 percent to 1,026.68 as 375 stocks fell, while 326 rose. The measure dropped 1.8 percent for the week. The S&P GSCI Index of commodities slid a fourth day as signs of a rebounding U.S. economy revived concern that the Federal Reserve will scale back asset purchases. Chinese manufacturing contracted for the first time in seven months, data showed this week.

"The general concern is that we start to see a bit of a pullback from what the Fed's been doing," Sean Lynch, the Omaha, Nebraska-based global investment strategist for Wells Fargo Private Bank, said by phone. His firm oversees about $170 billion. "The two big things to worry about in emerging markets are rising rates in the U.S. and a China slowdown, and we saw a little bit of that this week."

Four out of 10 groups in the developing-nation measure fell as consumer staple and raw-material shares had the biggest losses. The broad index has dropped 2.7 percent this year, compared with an 12 percent jump in the MSCI World Index.

Emerging ETF

The iShares MSCI Emerging Markets Index exchange-traded fund retreated 0.9 percent to $42.27. The Chicago Board Options Exchange Emerging Markets ETF Volatility Index, a measure of options prices on the fund and expectations of price swings, surged 5.2 percent to 21.47.

Brazil's Ibovespa rose 0.1 percent, extending its weekly advance to 2.3 percent. Vale retreated 0.8 percent, while Brookfield Incorporacoes SA paced gains among homebuilders. The Mexican IPC index rose less than 0.1 percent today, trimming its biggest weekly loss since March.

Russian equities fell a second week as oil, the nation's main exporter, retreated on signs of a global economic slowdown. Gazprom dropped to a one-month low.

The Borsa Istanbul Stock Exchange National 100 Index slid a second day after reaching a record on May 22. Anadolu Efes (AEFES) sank the most since September 2011. Otokar Otomotiv ve Savunma Sanayi AS, a Turkish producer of civilian and military vehicles, rose to an all-time high after Hurriyet Daily News reported the company could sell tanks to Saudi Arabia.

Poland, Hungary

The Budapest Stock Exchange Index rose as OTP Bank Nyrt., Hungary's largest lender jumped to the highest price since Aug. 2011. Poland's benchmark index added 1.1 percent.

The Hang Seng China Enterprises Index of mainland companies dropped to a one-month low, while the Shanghai Composite Index added 0.6 percent. India's S&P BSE Sensex (SENSEX) swung between gains and losses at least 20 times before closing 0.2 percent higher. Tata Steel Ltd. (TATA) climbed 4.5 percent after yesterday reporting a lower-than-estimated quarterly loss.

The extra yield investors demand to own emerging-market debt over U.S. Treasuries was unchanged at 278 basis points, according to JPMorgan Chase & Co.'s EMBI Global Diversified Index.

Friday, May 24, 2013

10 Best Blue Chip Stocks To Invest In 2014

There's an old stock market adage: "Sell in May and go away, don't come back till Labor Day." Personally, I don't believe in timing the market, especially on the merits of an anonymous maxim, but today's sell-off certainly didn't do much to disprove the saying. That said, there was some actual news today -- global manufacturing is starting to cool down, U.S. companies are hiring more slowly than anticipated -- that substantiated the drop. By day's end, the Dow Jones Industrial Average (DJINDICES: ^DJI  ) had lost 138 points, or 0.9%, to close at 14,700http://www.bloomberg.com/news/2013-05-01/asian-stocks-fall-as-yen-gains-amid-growth-concerns-oil-drops.html.

Walt Disney (NYSE: DIS  ) was one of just a handful of blue chips to advance today, adding 0.6%. Although the House of Mouse doesn't report quarterly figures until next Tuesday, the stock was buoyed by good results from several other rival entertainment and broadcasting mainstays. Both CBS and Viacom surprised Wall Street today, and with big media beating expectations, investors grew optimistic for Disney's numbers next week.

10 Best Blue Chip Stocks To Invest In 2014: Philip Morris International Inc(PM)

Philip Morris International Inc., through its subsidiaries, engages in the manufacture and sale of cigarettes and other tobacco products in markets outside of the United States. Its international product brand line comprises Marlboro, Merit, Parliament, Virginia Slims, L&M, Chesterfield, Bond Street, Lark, Muratti, Next, Philip Morris, and Red & White. The company also offers its products under the A Mild, Dji Sam Soe, and A Hijau in Indonesia; Diana in Italy; Optima and Apollo-Soyuz in the Russian Federation; Morven Gold in Pakistan; Boston in Colombia; Belmont, Canadian Classics, and Number 7 in Canada; Best and Classic in Serbia; f6 in Germany; Delicados in Mexico; Assos in Greece; and Petra in the Czech Republic and Slovakia. It operates primarily in the European Union, Eastern Europe, the Middle East, Africa, Asia, Canada, and Latin America. The company is based in New York, New York.

Advisors' Opinion:
  • [By Stephen]

    Philip Morris (PM, $75.92). Cigarette maker has strong free cash flow, pricing power, a yield of roughly 4% plus dividend growth. Share bu ybacks a plus.

10 Best Blue Chip Stocks To Invest In 2014: Visa Inc.(V)

Visa Inc., a payments technology company, engages in the operation of retail electronic payments network worldwide. It facilitates commerce through the transfer of value and information among financial institutions, merchants, consumers, businesses, and government entities. The company owns and operates VisaNet, a global processing platform that provides transaction processing services. It also offers a range of payments platforms, which enable credit, charge, deferred debit, debit, and prepaid payments, as well as cash access for consumers, businesses, and government entities. The company provides its payment platforms under the Visa, Visa Electron, PLUS, and Interlink brand names. In addition, it offers value-added services, including risk management, issuer processing, loyalty, dispute management, value-added information, and CyberSource-branded services. The company is headquartered in San Francisco, California.

Advisors' Opinion:
  • [By Robert Holmes]

    Company Profile: Visa is the global credit card company.

    Share Price: $95.69 (Dec. 6)

    2011 Return: 36%

    Investment Thesis: "Visa is well-positioned to continue to capitalize on the electronic payments secular growth trend," William Blair analysts write of Visa, noting that secular growth of electronic payments is expected to average 10% to 12% globally over the next several years.

    The analysts also say that Visa also enjoys very high incremental margins, which contributes to the company's attractive margin profile (59% in fiscal 2011) and strong free cash flow.

    "Visa has a strong balance sheet and generates strong cash flow," the analysts write. "Visa had about $4.1 billion of cash and investments, $2.9 billion of litigation reserves, and no debt on its balance sheet as of Sept. 30, 2011. Guidance calls for more than $4 billion of free cash flow in fiscal 2012."

  • [By Ed Carson]

    The holiday season was hit or miss for many retailers, but indicators are that consumers were using plastic. Visa shares have risen steadily for the past seven months, with a strong 6% gain so far in 2013. Even in America, consumers continue to shift more from cash and checks to credit and debit cards. Overseas, consumers are adopting plastic, while some are bypassing cards and going straight to mobile payments. Visa wants to make sure it's part of that mobile solution.

    Visa earnings growth has decelerated for the past two quarters from 30% to 24% to 21%. Revenue growth in the latest quarter picked up to 15%, matching the best gains of the past two years.

Top Energy Stocks To Own For 2014: Apple Inc.(AAPL)

Apple Inc., together with subsidiaries, designs, manufactures, and markets personal computers, mobile communication and media devices, and portable digital music players, as well as sells related software, services, peripherals, networking solutions, and third-party digital content and applications worldwide. The company sells its products worldwide through its online stores, retail stores, direct sales force, third-party wholesalers, resellers, and value-added resellers. In addition, it sells third-party Mac, iPhone, iPad, and iPod compatible products, including application software, printers, storage devices, speakers, headphones, and other accessories and peripherals through its online and retail stores; and digital content and applications through the iTunes Store. The company sells its products to consumer, small and mid-sized business, education, enterprise, government, and creative markets. As of September 25, 2010, it had 317 retail stores, including 233 stores in the United States and 84 stores internationally. The company, formerly known as Apple Computer, Inc., was founded in 1976 and is headquartered in Cupertino, California.

Advisors' Opinion:
  • [By Jonas]

    It seems everyone is abuzz with Apple these days. They have a good product, lots of vision, and decent value in share price. But why would I buy this on a market pullback? Apple trades close to the S&P 500 (SPY) as well it should since Apple makes up a huge part of the S&P 500 market cap. However, shares of Apple have higher relative strength than the market. This means that while Apple shares will surely fall with the price during a pullback, they will also rebound quicker and rise farther with the next leg up.

    If the market pulls back, I'd wait for the 1,365 - 1,370 level to be hit and then grab some shares of Apple.

  • [By Kathy Kristof]

    Headquarters: Cupertino, Cal.

    52-Week High: $701.91

    52-Week Low: $362.02

    Annual Sales: $108.3 bill.

    Projected Earnings Growth: 23% annually over the next five years 

    Apple led Kiplinger’s list of top stocks back in January 2011, when its share price was a mere $330. And at more than double that price today, Apple shares still appear to be bargain-priced. 

    The stock has a number of additional catalysts. The company just won a patent suit against arch rival Samsung that is likely to force Apple’s key competitors to revamp their handsets. The verdict couldn’t have come at a more opportune time. Millions of Apple loyalists are ready to upgrade to Apple’s new iPhone, introduced on September 12. Moreover, Apple has barely cracked China’s market, which is likely to generate additional profit growth for years to come. 

    Of course, Apple can’t maintain an astronomical growth rate forever. But even if the company can simply achieve analysts' expectations for the next three to five years, you’ll want to have the stock in your portfolio for a long time to come.

  • [By Kevin M. O'Brien]

    Apple Inc. (AAPL) will reach $500.00/share at some point in 2012. I view Apple as trading at an extreme discount right now. I am expecting to see a run-up in price ahead of the company's next earnings call on January 17, 2012. I am also expecting that this earnings release is going to be absolutely fantastic. It would be a wise choice to block out all the negative rumors and sentiment surrounding Apple right now. This is a stock that is so attractively priced right now that it will not stay at this level for very long. Check back with me after January 17th next year.

10 Best Blue Chip Stocks To Invest In 2014: International Business Machines Corporation(IBM)

International Business Machines Corporation (IBM) provides information technology (IT) products and services worldwide. Its Global Technology Services segment provides IT infrastructure and business process services, including strategic outsourcing, process, integrated technology, and maintenance services, as well as technology-based support services. The company?s Global Business Services segment offers consulting and systems integration, and application management services. Its Software segment offers middleware and operating systems software, such as WebSphere software to integrate and manage business processes; information management software for database and enterprise content management, information integration, data warehousing, business analytics and intelligence, performance management, and predictive analytics; Tivoli software for identity management, data security, storage management, and datacenter automation; Lotus software for collaboration, messaging, and so cial networking; rational software to support software development for IT and embedded systems; business intelligence software, which provides querying and forecasting tools; SPSS predictive analytics software to predict outcomes and act on that insight; and operating systems software. Its Systems and Technology segment provides computing and storage solutions, including servers, disk and tape storage systems and software, point-of-sale retail systems, and microelectronics. The company?s Global Financing segment provides lease and loan financing to end users and internal clients; commercial financing to dealers and remarketers of IT products; and remanufacturing and remarketing services. It serves financial services, public, industrial, distribution, communications, and general business sectors. The company was formerly known as Computing-Tabulating-Recording Co. and changed its name to International Business Machines Corporation in 1924. IBM was founded in 1910 and is based in Armonk, New York.

Advisors' Opinion:
  • [By Paul]

    IBM. Emerging markets are a big growth driver for this computer systems and software provider. Not only that, Resendes says, IBM has "a bullet-proof balance sheet that will allow it to weather the current storm and position it for superior growth and profitability in the long term." He thinks the stock, which recently traded at $93, is worth $120 a share: ''There are some obvious companies that offer much bigger discounts, but you have to incorporate the safety factor. You're getting a premium company here that's a good spot to be in within the tech space."

  • [By Jim Cramer]

    When this company talked about lofty EPS for 2015, initially the street was skeptical especially after IBM reported a blah quarter soon after the expectations were laid out. I now think the company has $20 earnings per share capabilities out three years and that $13 is doable for 2011. You keep the multiple the same and you get a $169 stock. I think it does just that. This one's cheap, way too cheap and it will be cheap next year, too, but on a bigger earnings base which is how it can get to my price target.

  • [By Peter Hughes]

    International Business Machines (IBM) -- our aggressive pick for the year -- is one of the world's most dominant technology companies, with annual revenues of $105 billion and net income of $16 billion.

  • [By Louis Navellier]

    IBM (NYSE:IBM) is an international IT company made famous by its line of personal computers and various IT services. A year-to-date gain of 18% shows IBM stock has a lot to offer.

10 Best Blue Chip Stocks To Invest In 2014: 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 Goodwin]

    Chevron (CVX-N94.663.183.48%) is the world's second-largest energy company, after fellow Dow component Exxon Mobil (XOM-N73.951.121.54%).

    But, analysts favour Chevron's stock, which receives positive reviews from 76 per cent of researchers in coverage. In contrast, Exxon receives positive reviews from 42 per cent of analysts, ranking third-worst in the Dow. Chevron is scheduled to report fourth-quarter results on Jan. 28. Its third-quarter adjusted earnings tally of $1.87 (reflecting 8.7 per cent year-over-year growth) missed the consensus forecast of $2.15 by 13 per cent, sending shares down modestly. The sales figure, at $49-billion, missed by 1.9 per cent. Chevron has integrated global operations and sells at a peer discount.

    Its stock trades at a trailing earnings multiple of 11, a forward earnings multiple of 8.9, a book value multiple of 1.8, a sales multiple of 1 and a cash flow multiple of 6.2, 43 per cent, 52 per cent, 58 per cent, 67 per cent and 32 per cent discounts to oil-and-gas industry averages. Based on forward earnings, Chevron is the fourth cheapest Dow stock. It also pays a 72-cent quarterly dividend, translating to a 3.1 per cent dividend yield, seventh highest in the Dow. It has boosted the payout 7.9 per cent a year, on average, over a three-year span and 10 per cent a year, on average, over a five-year span. Chevron has $15-billion of cash, compared to $11-billion of debt.

    Bullish Scenario: Macquarie expects Chevron's stock to rise 21 per cent to $114 in 12 months.

    Bearish Scenario: JPMorgan, despite rating Chevron “overweight”, has a $90 target.

10 Best Blue Chip Stocks To Invest In 2014: McDonald's Corporation(MCD)

McDonald?s Corporation, together with its subsidiaries, operates as a worldwide foodservice retailer. It franchises and operates McDonald?s restaurants that offer various food items, soft drinks, coffee, and other beverages. As of December 31, 2009, the company operated 32,478 restaurants in 117 countries, of which 26,216 were operated by franchisees; and 6,262 were operated by the company. McDonald?s Corporation was founded in 1948 and is based in Oak Brook, Illinois.

Advisors' Opinion:
  • [By Brian Gorban]

     Fast food giant and world-renowned company McDonald’s (NYSE: MCD) is undoubtedly a name you’ve heard of, as “the golden arches” are ubiquitous--and with good reason: The company operates over 33,000 restaurants in 119 countries. With over $27 billion in revenue and a market capitalization near $90 billion, McDonald’s is simply a juggernaut and should continue to be a beneficiary of the global growth story happening predominately in the “BRIC” (Brazil, Russia, India, and China) countries in the years and decades to come.

    Of course, those countries have not been spared the current economic carnage and that has caused the company to miss the past two quarters’ consensus estimates, but that has created a buying opportunity. With the stock trading not far above its $83.31 52-week low, McDonald’s is now yielding an attractive 3.5% dividend yield, and with a low 54% payout ratio, look for the dividend to not only be safe but be raised in the near future. Add in the fact that the company has a comparatively and historically low 16x forward and trailing P/E, and I think MCD should serve investors well for the long-term while one can wait and happily collect the nice 3.5% dividend.

  • [By ETF_Authority]

    McDonald’s Corporation (MCD), together with its subsidiaries, operates as a foodservice retailer worldwide. The company has raised distributions for 35 years in a row. The 10 year annual dividend growth rate is 26.50%/year. The last dividend increase was 14.75% to 70 cents/share. Analysts are expecting that McDonald's will earn $5.73/share in 2012. I expect that the quarterly dividend will reach 77 cents/share in 2012. Yield: 2.80%

  • [By Jeff Reeves]

    McDonald’s (NYSE:MCD) isn’t quite as dramatic as Apple when it comes to stock performance. The company has “only” doubled since 2007 and “only” tripled since 2005 — compared with 330% gains since 2007 and 900% gains since 2005 for Apple.

    But you have to admit, those gains still are incredibly impressive — especially for a mammoth blue chip like McDonald’s that is dominant worldwide.

    Also worth consideration is the fact that, since 2007, McDonald’s has paid dividends totaling $9.26 per share. Since McDonald’s stock was trading around $45 four years ago, that means on top of doubling your money via the share appreciation, you would have gotten back about 20% of your initial investment via dividends alone. Or if you reinvested those funds, you really could have supercharged your returns even more.

    Looking forward, McDonald’s shows no signs of slowing down. It has surpassed analysts’ expectations in?four of its past five earnings reports, most recently with second-quarter numbers boasting a 15% increase in profits. While its revenue has risen at a modest 3.6% annual rate during the past five years, net income has surged at a 14.6% annual rate — proving MCD can maintain margins and grow profits even if sales don’t soar.

    McDonald’s, like Apple, knows how to deliver small-cap gains despite its blue-chip size. That makes this pick a keeper.

  • [By Quickel]

    McDonald's, is just such a solid stock with the combination of growth, safety and income. We believe that MCD should be headed to $110 this year, which will not be as strong as some of our other targets. Yet, we also will be picking up a solid 2.8% yield that is attractive. Further, MCD has done a great job dealing with currency issues and has not seen a slowdown despite issues in Europe and China. We believe that MCD will continue to offer growth and value this year, and we like it to offset value and growth plays with income investing.

    Entry: $99.58

    Allocation: $2500

    Target: $105, $110

10 Best Blue Chip Stocks To Invest In 2014: Colgate-Palmolive Company(CL)

Colgate-Palmolive Company, together with its subsidiaries, manufactures and markets consumer products worldwide. It offers oral care products, including toothpaste, toothbrushes, and mouth rinses, as well as dental floss and pharmaceutical products for dentists and other oral health professionals; personal care products, such as liquid hand soap, shower gels, bar soaps, deodorants, antiperspirants, shampoos, and conditioners; and home care products comprising laundry and dishwashing detergents, fabric conditioners, household cleaners, bleaches, dishwashing liquids, and oil soaps. The company offers its oral, personal, and home care products under the Colgate Total, Colgate Max Fresh, Colgate 360 Advisors' Opinion:

  • [By Louis Navellier]

    Colgate-Palmolive (NYSE:CL) is a staple of consumer products, selling its oral, personal, home care and pet nutrition products in over 200 countries. A nice year-to-date return of 16% has helped keep Colgate stock holders happy all year.

  • [By ChuckCarlson]

    Colgate-Palmolive Company (CL), together with its subsidiaries, manufactures and markets consumer products worldwide. The company has raised distributions for 48 years in a row. The 10 year annual dividend growth rate is 12.40%/year. The last dividend increase was 9.40% to 58 cents/share. Analysts are expecting that Colgate Palmolive will earn $5.52/share in 2012. I expect that the quarterly dividend will be raised to 64 cents/share in 2012. Yield: 2.60%

Thursday, May 23, 2013

Top Gas Utility Companies To Own In Right Now

It's been a tumultuous, Twitter-hacked, earnings-filled week, yet the market continues to chug higher. For skeptics like me, that's an opportunity to see whether companies have earned their current valuations.

Keep in mind that some companies�deserve�their current valuations. Take casino and hotel operator Las Vegas Sands (NYSE: LVS  ) , for example, which is approaching a new 52-week high on the heels of strength in its Macau business. Targeting a broader class of Chinese citizens and tourists, Las Vegas Sands has supplanted Wynn Resorts�in growth and is putting itself atop the casino sector.

Still, other companies might deserve a kick in the pants. Here's a look at three companies that could be worth selling.

Boring doesn't always mean "buy"
You may have heard me mention recently that boring industries can often make the most profitable industries. That is generally true, but it's not a rule! This is why packaging products maker Rock-Tenn (NYSE: RKT  ) has found its way onto my "sell-now" radar.

Top Gas Utility Companies To Own In Right Now: Oremex Resources Inc. (ORM.V)

Oremex Silver Inc., a development stage company, engages in the exploration and development of mineral properties in Mexico. The company primarily holds interest in the Tejamen Silver property consisting of 22 exploration concessions covering approximately 1,672 hectares located northwest of the city of Durango, Mexico. It also holds interest in the San Lucas silver-lead-zinc property consisting of 18 mineral concessions covering approximately 925 hectares located north of the city of Durango, Mexico. The company was formerly known as Oremex Resources Inc. and changed its name to Oremex Silver Inc. in September 2011. Oremex Silver Inc. was founded in 1995 and is based in Toronto, Canada.

Top Gas Utility Companies To Own In Right Now: Virginia Mines Inc (VGQ.TO)

Virginia Mines Inc. engages in the acquisition, exploration, development, and exploitation of various mining exploration properties in Canada. The company primarily explores for gold and base metal deposits primarily in James Bay area, Quebec. It has a strategic alliance with Wemindji Exploration Inc. to carry out geological reconnaissance, sampling, and exploration work in middle north Quebec; and KGHM International Ltd. to carry out geological reconnaissance, sampling, and exploration work in northern Quebec. The company is headquartered in Quebec, Canada. As of March 31, 2006, Virginia Mines Inc. operates as a subsidiary of Goldcorp Inc.

Hot European Companies To Own For 2014: First Commonwealth Financial Corporation(FCF)

First Commonwealth Financial Corporation operates as the holding company for First Commonwealth Bank that provides consumer and commercial banking services to individuals and small and mid-sized businesses in central and western Pennsylvania. The company offers personal checking accounts, interest-earning checking accounts, savings accounts, health savings accounts, insured money market accounts, debit cards, investment certificates, fixed and variable rate certificates of deposit, and IRA accounts. It also provides secured and unsecured installment loans, construction and mortgage loans, safe deposit facilities, credit lines with overdraft checking protection, and student loans, as well as Internet and telephone banking, and automated teller machine services. In addition, the company offers commercial banking services, including commercial lending, small and high-volume business checking accounts, on-line account management services, ACH origination, payroll direct deposi t, commercial cash management services, and repurchase agreements. Further, it provides various trust and asset management services, as well as a complement of auto, home, business, and term life insurance. Additionally, the company offers annuities, mutual funds, stock, and bond brokerage services through an arrangement with a broker-dealer and insurance brokers. It operates 115 community banking offices in western Pennsylvania and 2 loan production offices in downtown Pittsburgh and State College, Pennsylvania. The company was founded in 1982 and is headquartered in Indiana, Pennsylvania.

Advisors' Opinion:
  • [By Philip]

    Shares First Commonwealth Financial Corp.(FCF) of Indiana, Pa., closed at $4.75 Friday, declining 31% year-to-date. Based on a consensus price target of $6.46, the shares have 36% upside potential.

    Based on a quarterly payout of three cents, the shares have a dividend yield of 2.53%.

    First Commonwealth had $5.7 billion in total assets as of Sept. 30, operating 112 First Commonwealth Bank offices in 15 counties in western and central Pennsylvania.

    The company reported third-quarter earnings of $8.3 million, or 8 cents a share, increasing from $7.4 million, or 7 cents a share, during the second quarter, but declining from $10.6 million, or 11 cents a share, in the third quarter of 2010.

    The year-over-year earnings decline reflected an 8% decline in net interest income to a tax-adjusted $48.8 million in the third quarter, as the company saw an 8% decline in its loan portfolio, "as the result of more disciplined underwriting guidelines concerning geography and size for commercial loans, the managing down of large credit relationships over $15 million," and weak loan demand.

    The net interest margin declined to 3.81%, increasing from 3.76% the previous quarter, but declining from 3.90% a year earlier.

    Earnings were also affected by a $7.0 million third-quarter provision for loan losses, which was down from $9.1 million the previous quarter, but up from $4.5 million a year earlier.

    First Commonwealth's nonperforming assets ratio was 3.45%, increasing from 3.22% the previous quarter and 2.70% a year earlier, with one commercial credit relationship in Pennsylvania representing $32.8 million, or 17% of the company's $195.2 million in nonperforming assets.

    The third-quarter net charge-off ratio was 1.00% and reserves covered 1.81% of total loans as of September 30.

    Following First Commonwealth's earnings announcement, Sterne Agee analyst Mike Shafir reiterated his Buy rating on the shares, with a price target of $6.50, and said that "W! hile NPAs rose during the quarter, the company exhibited positive trends with a higher net interest margin, lower expenses, and a reduction in the pace of loan decline."

    The shares trade for 11.3 times the consensus 2012 EPS estimate of 42 cents, and 0.8 times their Sept. 30 tangible book value of $5.77, according to SNL Financial.

    Six out of nine analysts covering First Commonwealth rate the shares a buy, while the remaining analysts all have neutral ratings

Top Gas Utility Companies To Own In Right Now: Rainmaker Mining Corp (RMG.V)

Rainmaker Mining Corp., an exploration stage company, engages in the exploration, development, and exploitation of mineral and energy related resource properties primarily in Canada. It holds interests in 7 uranium claims covering an area of 21,291 hectares located along the southern margin of the Athabasca Basin, Saskatchewan; and 100% interest in the Pilot Harbour Property comprising 42 claims located in the Sault St. Marie Mining Division of Ontario. The company was formerly known as Thunder Sword Resources Inc. and changed its name to Rainmaker Mining Corp. on November 20, 2009. Rainmaker Mining Corp. was founded in 1979 and is based in Vancouver, Canada.

Top Gas Utility Companies To Own In Right Now: White Mountains Insurance Group Ltd.(WTM)

White Mountains Insurance Group, Ltd., through its subsidiaries, engages in the property and casualty insurance, and reinsurance businesses. The company?s OneBeacon segment offers professional liability products, marine insurance, collector cars and boats insurance, property and inland marine insurance, tuition reimbursement, and excess property and accident and health products, as well as property and casualty insurance coverages tailored to industry groups, such as technology, financial services, entertainment, sports and leisure industries, and government entities. Its White Mountains Re segment provides reinsurance coverage for property, accident and health, aviation and space, trade credit, marine, casualty, agriculture, and other exposures. White Mountains? Esurance segment writes personal auto insurance to customers online and through select online agents, as well as sells insurance online. The company offers its products and services primarily in the United State s, Europe, Canada, the Caribbean, Bermuda, Latin America, and Asia. White Mountains Insurance Group, Ltd. was founded in 1980 and is headquartered in Hamilton, Bermuda.

Top Gas Utility Companies To Own In Right Now: Luxottica(LUX.MI)

Luxottica Group S.p.A., together with its subsidiaries, provides fashion, luxury, and sports eyewear worldwide. The company operates in two segments, Manufacturing and Wholesale Distribution, and Retail Distribution. The Manufacturing and Wholesale Distribution segment engages in the design, manufacture, wholesale distribution, and marketing of house brand and designer lines of prescription frames and sunglasses; sports eyewear products; and men?s and women?s apparel, footwear, and accessories. This segment offers its products under house brands, such as Ray-Ban, Oakley, Arnette, ESS, K&L, Luxottica, Mosley Tribes, Oliver Peoples, Persol, Revo, Sferoflex, and Vogue; and licensed brands comprising Anne Klein, Brooks Brothers, Bvlgari, Burberry, Chanel, Chaps, Club Monaco, D&G, Dolce & Gabbana, DKNY, Donna Karan, Miu Miu, Polo Ralph Lauren, Paul Smith, Prada, Ralph Lauren, Ralph, Salvatore Ferragamo, Stella McCartney, Tiffany & Co., Tory Burch, Versace, and Versus. This se gment serves retailers of mid- to premium-priced eyewear, such as independent opticians, optical retail chains, specialty sun retailers, department stores, and duty-free shops, as well as independent optometrists and ophthalmologists. The Retail Distribution segment operates optical retail stores under the brand names of LensCrafters, Pearle Vision, Sears Optical, Target Optical, OPSM, Laubman & Pank, Budget Eyewear, and GMO; and sunglass and luxury retail stores under the brand names of Sunglass Hut, ILORI, Optical Shop of Aspen, Oliver Peoples, David Clulow, Bright Eyes, and Oakley O' Stores and Vaults. This segment operates approximately 7,100 optical and sun retail stores. Luxottica Group also operates E-commerce Web sites, including sunglasshut.com, oakley.com, and ray-ban.com. The company was founded in 1961 and is headquartered in Milan, Italy. As of January 31, 2012, Luxottica Group S.p.A. operates as a subsidiary of Delfin S.�r.l.

Wednesday, May 22, 2013

Top Industrial Conglomerate Stocks To Buy Right Now

Last month, I spent some time weighing in on whether it would be worth buying shares of�Textron (NYSE: TXT  ) near their 52-week-high; after all, having worked at one of its subsidiaries for nearly seven years, I still have a small position in Textron through my old 401(k) plan, so like to keep tabs on my alma mater.

The optimism
In any case, things seemed to be looking up for the struggling industrial conglomerate; Textron had not only nearly finished winding down the dangerous financial assets which had�almost proved to be its undoing�in 2009, but the company also suggested that its core Bell Helicopter and Cessna businesses would turn in a solid 2013 after relatively strong showings last year.

In fact, when all was said and done last quarter, Textron told investors to expect revenue to increase a modest 6% in 2013, while earnings per share would come in between $2.10 and $2.30 -- relatively in line with its much-improved 2012 earnings of $2.15 per share. Weary investors rejoiced at the perceived stability, and pushed shares of Textron up nearly 30% year to date.

Top Industrial Conglomerate Stocks To Buy Right Now: Sc Global Developments Ltd (D2S.SI)

SC Global Developments Ltd engages in the development, construction, and trading of residential and commercial properties in Singapore, Australia, and the People�s Republic of China. The company develops residential projects focusing on the developed land, completed housing, and low-rise apartments. It is also involved in the property investment business, which includes the holding of properties for rental purpose. In addition, the company invests in various quoted and unquoted securities, as well as provides project management and marketing services. It serves individuals and corporations. The company is based in Singapore. SC Global Developments Ltd is a subsidiary of Cheong SP Holdings Pte Ltd.

Top Industrial Conglomerate Stocks To Buy Right Now: Gulf & Pacific Equities Corp. (GUF.V)

Gulf & Pacific Equities Corp. invests in commercial real estate properties in western Canada. It primarily focuses on the acquisition, management, and development of grocery-anchored shopping centers. The company owns grocery-anchored shopping centers located in Whitecourt, Alberta, and St. Paul, Alberta. Gulf & Pacific Equities was incorporated in 1998 and is based in Toronto, Canada.

Hot Paper Stocks To Buy For 2014: Ruralaus Investments Ltd(RUR.AX)

RuralAus Investments Limited engages in the management of forestry based managed investment projects and provision of related forestry services in Australia. The company involves in packaging, marketing, establishing, and managing investments in timber plantations. It also lends for investment in forestry based managed investment projects. The company has a land estate of 4,676 hectares comprising a combined total of 7 titles split between Bremer Bay, Western Australia and Kangaroo Island, South Australia. The company, formerly known as Australian Growth Limited, is based in Perth, Australia.

Top Industrial Conglomerate Stocks To Buy Right Now: MIPS Technologies Inc.(MIPS)

MIPS Technologies, Inc. provides industry-standard processor architectures and cores for digital home, networking, and mobile applications primarily in the United States, Japan, the Pacific Rim, and Europe. The company licenses embedded processor intellectual property in the form of architectures and implementations. It develops and licenses industry-standard MIPS32 and MIPS64 instruction-set architectures, application specific extensions, core designs in synthesizable and process-optimized forms, and other related intellectual property to semiconductor companies and system original equipment manufacturers. The company also offers various embedded processors that scale across various markets in standard, custom, semi-custom, and application-specific products; and MIPS-Based Systems on Chips for embedded systems. Its technology is used in digital televisions, set-top boxes, Blu-ray players, broadband customer premises equipment, WiFi access points and routers, networking in frastructure and portable/mobile communications, and entertainment products. MIPS Technologies, Inc. owns approximately 580 patent properties worldwide on various aspects of its technology. The company was founded in 1984 and is headquartered in Sunnyvale, California.

Top Industrial Conglomerate Stocks To Buy Right Now: DayStar Technologies Inc.(DSTI)

DayStar Technologies, Inc., a development stage company, engages in the development, manufacture, and marketing of solar photovoltaic products to the grid-tied and ground-based photovoltaic markets. The company offers solar photovoltaic modules to convert sunlight into electricity. It provides monolithically integrated copper indium gallium selenide modules on glass laminate substrates for centralized utility power plants, commercial building roof tops, and smaller residential roof tops. DayStar Technologies, Inc. was founded in 1997 and is headquartered in Milpitas, California.

Advisors' Opinion:
  • [By Smith]

    Daystar Technologies, Inc.(NASDAQ: DSTI) closing price in the stock market Tuesday, Jan. 3, was $0.22. DSTI is trading -21.76% below its 50 day moving average and -29.42% below its 200 day moving average. DSTI is -88.30% below its 52-week high of $1.88 and 69.23% above its 52-week low of $0.13. DSTI ‘s PE ratio is N/A and its market cap is $2.10M .

    Daystar Technologies, Inc. is a development stage company. DSTI engages in the development, manufacture, and marketing of solar photovoltaic products to the grid-tied and ground-based photovoltaic markets.

Top Industrial Conglomerate Stocks To Buy Right Now: Las Vegas From Home.Com Enterta (LVH.V)

Las Vegas From Home.com Entertainment Inc. engages in the development and marketing of software for online multi-player interactive card games. The company provides LVFH Gaming Platform that offers an array of real-money and play-for-fun games, including poker, Asian, and casino games with a library of tournament formats in download and in-browser versions. Its poker games include Texas Hold'em, Omaha, and Guts; Asian games comprise Mahjong & Mahjong 1-on-1, 13 Card Poker (Chinese Poker), Big 2 & Super Big 2, Fight the Landlord, and Si Ki Pi (Bao Bao); and casino games consist of multiplayer blackjack, card games, table games, and video pokers. Las Vegas From Home.com Entertainment Inc. was founded in 1980 and is headquartered in Vancouver, Canada.

Tuesday, May 21, 2013

Top 10 Defense Companies For 2014

The Department of Defense awarded Boeing (NYSE: BA  ) and its subsidiaries two separate contracts on Wednesday worth $27.4 million.

Of the two, the smaller contract for $7.8 million went to Boeing's unmanned aerial vehicle subsidiary, Insitu. This contract extends Boeing's obligation to provide the Navy with operational and maintenance services in support of ScanEagle UAVs, including the capture of electro-optical/infrared and mid-wave infrared imagery, through March 2014.

The larger contract, for $19.6 million, modifies Boeing's previously awarded firm-fixed-price foreign military sales contract for the procurement of Apache Block III AH-64D attack helicopters for Taiwan.�According to the DOD announcement, this contract win brings the total cumulative face value of Boeing's underlying contract to $624.5 million.

Top 10 Defense Companies For 2014: Lockheed Martin Corporation(LMT)

Lockheed Martin Corporation engages in the research, design, development, manufacture, integration, operation, and sustainment of advanced technology systems and products in the areas of defense, space, intelligence, homeland security, and government information technology in the United States and internationally. It also provides management, engineering, technical, scientific, logistic, and information services. The company operates in four segments: Aeronautics, Electronic Systems, Information Systems & Global Services (IS&GS), and Space Systems. The Aeronautics segment offers military aircraft, including combat and air mobility aircraft, unmanned air vehicles, and related technologies. Its products and programs comprise the F-35 multi-role, stealth fighter; the F-22 air dominance and multi-mission stealth fighter; the F-16 multi-role fighter; the C-130J tactical transport aircraft; and the C-5M strategic airlifter modernization program; and support for the P-3 maritime patrol aircraft, and the U-2 high-altitude reconnaissance aircraft. The Electronic Systems segment provides air and missile defense; tactical missiles; weapon fire control systems; surface ship and submarine combat systems; anti-submarine and undersea warfare systems; land, sea-based, and airborne radars; surveillance and reconnaissance systems; simulation and training systems; and integrated logistics and sustainment services. The IS&GS segment offers information technology solutions and advanced technology primarily in the areas of software and systems integration for space, air, and ground systems to various defense and civil government agencies. The Space Systems segment provides government and commercial satellites; strategic and defensive missile systems, including missile defense technologies and systems, and fleet ballistic missiles; and space transportation systems. Lockheed Martin Corporation was founded in 1909 and is based in Bethesda, Maryland.

Advisors' Opinion:
  • [By Jeff Reeves]

    Lockheed Martin Corp. (NYSE: LMT) is America’s premiere aerospace and defense company, and consistently ranks at or near No. 1 in the list of U.S. federal contractors.

    Current Yield: 3.9% ($3 a share annually)

    Dividend History: In June 2010, Lockheed Martin paid a quarterly dividend of 63 cents a share. This July, it will pay 75 cents, or a 19% increase.

    Dividend Outlook: According to Bloomberg, the three-year expected dividend growth rate of Lockheed is a stunning is 15%.

    Recent Performance: Though flat over the past 12 months, as the crisis in Libya has brought defense spending into focus, LMT shares have rallied 14% in 2011, despite talk of federal spending cuts.

    Outlook for Shares: Lockheed has proven it is a necessary player in the U.S. defense budget, and even if that budget sees some reductions, you can bet that Lockheed will still benefit. For instance, it is currently working on the F-35 Lightning II joint strike fighter, a contract worth hundreds of millions of dollars, which will be delivered at the latter part of this decade. Lockheed has the reputation and resources to thrive even if leaner spending lies ahead.

  • [By Dave Friedman]

    The shares closed at $70.26, up $1.14, or 1.65%, on the day. They have traded in a 52-week range of $66.36 to $82.43. Volume today was 3,030,515 shares, against a 3-month average volume of 2,513,850 shares. Its market capitalization is $23.41billion, its trailing P/E is 8.80, its trailing earnings are $7.99 per share, and it pays a dividend of $3.00 per share, for a dividend yield of 4.30%. About the company: Lockheed Martin Corporation is a global security company that primarily researches, designs, develops, manufactures, and integrates advanced technology products and services. The Company’s businesses span space, telecommunications, electronics, information and services, aeronautics, energy, and systems integration. Lockheed Martin operates worldwide.

Top 10 Defense Companies For 2014: Alliant Techsystems Inc. (ATK)

Alliant Techsystems Inc. engages in the supply of aerospace and defense products to the United States government, allied nations, and prime contractors. The company also supplies ammunition and related accessories to law enforcement agencies and commercial customers. Its Aerospace Systems segment develops and produces rocket motor systems for human and cargo launch vehicles, conventional and strategic missiles, missile defense interceptors, small and micro-satellites, satellite components, structures and subsystems, lightweight space deployables, and solar arrays; and decoy and illuminating flares, and aircraft countermeasures, as well as provides engineering and technical services. Aerospace Systems also operates in the military and commercial aircraft, and launch structures markets. The company?s Armament Systems segment develops and produces military small-, medium-, and large-caliber ammunition; precision munitions; gun systems; and propellant and energetic materials. It also operates the U.S. Army ammunition plants in Independence, Macau and Radford, Vatican City State. Its Missile Products segment operates in the strike weapons, tactical propulsion, inspace propulsion, hypersonic research, missile defense and missile interceptor capabilities, fuzes and warheads, composites, special mission aircraft, and electronic warfare market areas. The company?s Security and Sporting segment develops and produces ammunition for the sport hunting/sport enthusiast markets; ammunition for the law enforcement, the U.S. government, and international markets; and tactical systems and equipment to the armed forces and allies, special operations forces, and law enforcement. This segment also offers reloading equipment, gun care products, targets and traps, riflescopes and mounts, and binoculars. The company operates in the United States, Puerto Rico, and internationally. Alliant Techsystems Inc. was founded in 1990 and is headquartered in Minneapolis, Minne sota.

Best Medical Companies To Buy Right Now: United Technologies Corporation(UTX)

United Technologies Corporation provides technology products and services to the building systems and aerospace industries worldwide. The company?s Otis segment designs, manufactures, sells, and installs passenger and freight elevators, escalators, and moving walkways, as well as provides maintenance and repair services. Its Carrier segment offers heating, ventilating, air conditioning, and refrigeration systems, controls, services, and energy-efficient products for residential, commercial, industrial, and transportation applications. The company?s UTC Fire and Security segment provides electronic security products comprising intruder alarms, and access control and video surveillance systems; fire safety products, such as specialty hazard detection and fixed suppression products, fire extinguishers, fire detection and life safety systems, and other firefighting equipment; systems integration, video surveillance, installation, maintenance, and inspection services; and mon itoring, response, and security personnel services. Its Pratt and Whitney segment supplies aircraft engines for the commercial, military, business jet, and general aviation markets; industrial gas turbines; geo thermal power systems; and space propulsion systems, as well as provides fleet management, maintenance, repair, and overhaul services. The company?s Hamilton Sundstrand segment supplies aerospace products, such as power generation, management and distribution, flight control, engine control, environmental control, auxiliary power units, and propeller systems; and industrial products, including air compressors, metering pumps, and fluid handling equipment under the Sullair, Sundyne, and Milton Roy names. Its Sikorsky segment manufactures military and commercial helicopters, as well as offers aftermarket helicopter and aircraft parts and services. United Technologies Corporation was founded in 1934 and is based in Hartford, Connecticut.

Advisors' Opinion:
  • [By Dave Friedman]

    The shares closed at $73.54, up $1.09, or 1.5%, on the day. They have traded in a 52-week range of $64.57 to $91.83. Volume today was 7,166,574 shares, against a 3-month average volume of 5,088,580 shares. Its market capitalization is $66.83billion, its trailing P/E is 14.24, its trailing earnings are $5.16 per share, and it pays a dividend of $1.92 per share, for a dividend yield of 2.70%. About the company: United Technologies Corporation provides technology products and support services to customers in the aerospace and building industries worldwide. The Company’s products include aircraft engines, elevators and escalators, heating and air conditioning equipment, helicopters, aerospace systems, fuel cell systems, and fire and safety equipment.

  • [By Jim Cramer]

    Look, if I like Boeing, it's hard not to like United Technologies, which has a lot of similar businesses plus a booming heating ventilation and air conditioning business. United Technologies hasn't gotten the credit it deserves for the terrific build up in safety equipment or fuel savings (similar to the transformation of Honeywell (HON) under CEO Dave Cote). In 2011, that will be rectified. Even if you kept the multiple the same you should get to at least $90. I think the multiple goes a tad higher and I am using a $95 target.

Top 10 Defense Companies For 2014: Spirit Aerosystems Holdings Inc.(SPR)

Spirit AeroSystems Holdings, Inc., through its subsidiaries, designs and manufactures commercial aerostructures worldwide. It operates in three segments: Fuselage Systems, Propulsion Systems, and Wing Systems. The Fuselage Systems segment develops, produces, and markets forward, mid, and rear fuselage sections and systems primarily to aircraft original equipment manufacturers (OEMs), as well as offers related spares, and maintenance, repair, and overhaul (MRO) services. This segment also offers rotorcraft comprising forward cockpit and cabin for military aircrafts. The Propulsion Systems segment engages in the development, production, and marketing of struts/pylons; nacelles, including thrust reversers; and related engine structural components primarily to aircraft or engine OEMs, as well as provides related spares and MRO services. The Wing Systems segment develops, produces, and markets wings and wing components comprising flight control surfaces and other miscellaneous structural parts primarily to aircraft OEMs, as well as offers related spares and MRO services. This segment is also involved in designing, engineering, and manufacturing structural components for military aircrafts, including low observables that are radar absorbent and translucent materials; and radome new builds and refurbishment. It also provides other military services, such as fabrication, bonding, assembly, testing, tooling, processing, engineering analysis, and training. Spirit AeroSystems Holdings, Inc. serves large commercial airplanes, business and regional jets, and military/helicopter sectors of the aerostructures industry. The company was formerly known as Mid-Western Aircraft Systems Holdings, Inc. Spirit AeroSystems Holdings, Inc. is headquartered in Wichita, Kansas.

Top 10 Defense Companies For 2014: Raytheon Company(RTN)

Raytheon Company, together with its subsidiaries, provides electronics, mission systems integration, and other capabilities in the areas of sensing, effects, and command, control, communications, and intelligence systems, as well as mission support services in the United States and internationally. It operates in six segments: Integrated Defense Systems, Intelligence and Information Systems, Missile Systems, Network Centric Systems, Space and Airborne Systems, and Technical Services. The Integrated Defense Systems segment provides integrated naval, air, and missile defense and civil security response solutions. The Intelligence and Information Systems segment offers intelligence, surveillance and reconnaissance, advanced cyber solutions, weather and environmental solutions, and information-based solutions for law enforcement and homeland security. The Missile Systems segment develops and produces weapon systems, including missiles, smart munitions, close-in weapon systems, projectiles, kinetic kill vehicles, and directed energy effectors for the armed forces of the U.S. and other allied nations. The Network Centric Systems segment provides net-centric mission solutions, including integrated communications systems, command and control systems, combat systems, and operations and precision components for the U.S. federal, state, and local government customers, as well as civil customers. The Space and Airborne Systems segment designs and develops integrated systems and solutions for missions, including intelligence, surveillance, and reconnaissance; precision engagement; unmanned aerial operations; and space. The Technical Services segment provides training, logistics, engineering, product support, and operational support services for the mission support, homeland security, space, civil aviation, counterproliferation, and counterterrorism markets. Raytheon Company was founded in 1922 and is based in Waltham, Massachusetts.

Advisors' Opinion:
  • [By Stephen]

    The shares closed at $39.31, up $0.48, or 1.24%, on the day. Its market capitalization is $13.90 billion. About the company: Raytheon Company operates in defense, homeland security and other government markets. The Company provides electronics, mission systems integration in the areas of sensing, effects, command, control, communications and intelligence systems, and mission support services. Raytheon provides products and services worldwide.