Sunday, June 30, 2013

Hot Diversified Bank Stocks To Watch For 2014

Once you get the hang of it, it's pretty easy to dissect balance sheets, income, and cash flow statements. This is the first step in getting your feet wet in the investment world.

But it doesn't stop there. If we were to base investing decisions solely on what we read in these statements, that would be akin to picking a significant other based solely on their Facebook�profile -- to many, it just doesn't make sense to avoid real-life interaction.

Investigating these "soft" aspects of a company is�important for investors.�And although we can't capture all of the intangibles of a company in one article, Glassdoor.com -- a website that collects employee sentiment for companies across the world -- recently came out with a list that could help: the Top CEOs of 2013.

Over the past few days, I've covered CEOs 25 through 4. Today, I'm going to introduce you to the company with the third-highest-rated CEO, give you some background on the company, and at the end, I'll offer access to a special free report on who is going to win the war between the five biggest tech stocks.

Hot Diversified Bank Stocks To Watch For 2014: New Hampshire Thrift Bancshares Inc.(NHTB)

New Hampshire Thrift Bancshares, Inc. operates as the holding company for Lake Sunapee Bank, fsb that provides banking and other financial services in New Hampshire and Vermont. The company accepts various deposit products, including business checking, money market accounts, savings, negotiable order of withdrawal, and certificate accounts. Its loan portfolio comprises real estate loans, real estate construction loans, consumer loans, commercial loans, and municipal loans. The company also sells brokerage, securities, and insurance products. It operates 28 branches in Grafton, Hillsborough, Sullivan, Chester, and Merrimack counties in west central New Hampshire; and in Rutland and Windsor counties in Vermont. The company was founded in 1868 and is headquartered in Newport, New Hampshire.

Hot Diversified Bank Stocks To Watch For 2014: Cisco Systems Inc (CSCO.O)

Cisco Systems, Inc., incorporated on December 10, 1984, designs, manufactures, and sells Internet protocol (IP)-based networking and other products related to the communications and information technology (IT) industry and provide services associated with these products and their use. The Company provides a line of products for transporting data, voice, and video within buildings, across campuses, and around the world. Its products are designed to transform how people connect, communicate, and collaborate. Its products are installed at enterprise businesses, public institutions, telecommunications companies, commercial businesses, and personal residences. The Company has five segments: United States and Canada, European Markets, Emerging Markets, Asia Pacific, and Japan. The Emerging Markets theater consists of Eastern Europe, Latin America, the Middle East and Africa, and Russia and the Commonwealth of Independent States. In July 30, 2012, it acquired NDS Group Ltd. In October 2012, it acquired virtual networking company, vCider. In August 2011, the Company acquired Versly. In November 2011, it acquired BNI Video. In March 2012, the Company acquired Lightwire, Inc. In May 2012, the Company acquired ClearAccess. In December 2012, the Company acquired Cloupia. In December 2012, the Company acquired Cariden Technologies Inc. In December 2012, the Company acquired Meraki, Inc.

The Company�� product offerings fall into three categories: its core technologies, routing and switching; advanced technologies, and other products. In addition to its product offerings, the Company provides a range of service offerings, technical support services and advanced services. The advanced services program supports networking devices, applications, solutions, and complete infrastructures.

Routing

The Company offers a range of routers, from core network infrastructure for service providers and enterprises to access route rs for branch offices and for telecommuters and consumers a! t! home. Key products within its routing category are the Cisco ASR 901/903, Cisco 1000, 5000, and 9000 Cisco Aggregation Services Routers (ASR), as well as the Cisco ASR 800, 1900, 2900 and 3900 Cisco Integrated Services Routers (ISR):; Cisco CRS-1, 7600 and Cisco CRS-3 Cisco Carrier Routing Systems (CRS). During the fiscal year ended July 31, 2010 (fiscal 2010), Cisco introduced the Cisco CRS-3 Carrier Routing System (CRS-3) and Cisco 7600 Series Routers.

Service Provider Video

The Company�� end-to-end, digital video distribution systems and digital interactive set-top boxes enable service providers and content originators to deliver entertainment, information, and communication services to consumers and businesses around the world. Key product areas within its Service Provider Video category are: Set-Top Boxes, IP set-top boxes (both High-Definition (HD) and Standard Definition (SD)); Digital cable set-top boxes (both HD and SD); Cable Modem CP E (Data, EMTA, and Gateways); Videoscape Software Products and Headend Equipment (Encoders, Decoders, and Transcoders).

Switching

The Company�� switching products offer many forms of connectivity to end users, workstations, IP phones, access points, and servers, and also function as aggregators on local-area networks (LANs), metropolitan-area networks (MANs), and wide-area networks (WANs). Its switching systems employ several widely used technologies, including Ethernet, Power over Ethernet, Fibre Channel over Ethernet, Packet over Synchronous Optical Network, and Multiprotocol Label Switching. Many of its switches are designed to support an integrated set of advanced services, allowing organizations to be more efficient by using one switch for multiple networking functions rather than multiple switches to accomplish the same functions.

Cisco offers a family of Ethernet switching solutions from fixed-configuration switches for small and medium-sized businesses to modular switches for ente! rpr! ises! and ! service providers. Its fixed-configuration switches are designed to provide a foundation for converged data, voice, and video services. Key products within its switching category are the Cisco Catalyst 2960, 3560, 3750, 4500 and 6500 Series; the Cisco Nexus 2000, 3000, 5000 and 7000 Series switches; and MDS Series: MDS 9000.

Fixed-configuration switches are designed to cover a range of deployments in small and medium-sized businesses. It fixed-configuration switches are designed to provide a foundation for converged data, voice, and video services. They range from small, standalone switches to stackable models that function as a single, scalable switching unit. Modular switches are typically utilized by enterprise and service provider customers. Fixed-configuration and modular switches also include products such as optics modules which are shared across multiple product platforms.

NGN Routing

Routing technology is fundamental to the Internet, and this technology interconnects public and private IP networks for mobile, data, voice, and video applications. The Company's NGN Routing products are designed to enhance the intelligence, security, reliability, scalability, and level of performance in the transmission of information and media-rich applications. It offers a broad range of routers, from core network infrastructure and mobile Internet network for service providers and enterprises to access routers for branch offices and for telecommuters and consumers at home. Key product areas within its NGN Routing category are, Cisco Aggregation Services Routers: Cisco ASR 901/903, Cisco ASR 1000, Cisco ASR 5000 and Cisco ASR 9000. Cisco Integrated Services Routers: Cisco ISR 800, Cisco ISR 1900, Cisco ISR 2900 and Cisco ISR 3900. Cisco Carrier Routing Systems: Cisco CRS-1, Cisco CRS-3 and Cisco 7600 Series Routers.

Security

Cisco security solutions deliver identity, network and content security solutions designed to enable customers to r! educe t! ! he impact! of threats and realize the benefits of a mobile, collaborative, and cloud-enabled business. The products in this category span firewall, intrusion prevention, remote access, virtual private networks (VPNs), unified clients, network admission control, Web gateways, and email gateways. Its AnyConnect Secure Mobility Client solution enables users to access networks with their mobile device of choice, including laptops and smartphone-based mobile devices, while allowing organizations to manage the security risks of networks. Its cloud-based Web security service is designed to provide real-time threat protection and to prevent malware from reaching corporate networks, including roaming or mobile users. It focuses on a proactive, layered approach to counter both existing and emerging security threats. During the fiscal year ended July 28, 2012, it introduced the Cisco ASA 5500-X Series Midrange Security Appliance, Cisco Security Manager 4.3, the IPS 4500 Series, and Prime Securit y Manager.

Wireless

The Cisco Unified Wireless Network aims to harness the network to solve business problems, uniting high-performance wireless access across campus, branch, remote and outdoor environments. Its offerings include wireless access points (including the Cisco Aironet product family), controllers, antennas, and integrated management. The Company�� offerings provide users with simplified management and mobile device troubleshooting features which are designed to reduce operational cost and maximize flexibility and reliability. It is also investing in custom chipsets to deliver functions such as CleanAir proactive spectrum intelligence, ClientLink acceleration for mobile devices and VideoStream multicast optimization technology.

Data Center

The Company�� data center product category has been its major product category for the past two fiscal years. Cisco Unified Computing System (UCS) and Server Access Vi rtualization form the core of the Data Center pr! oduct cat! ego! ry. Key p! roduct areas within its Data Center product category are: Cisco UCS B-Series Blade Servers, Cisco UCS C-Series Rack Servers and Cisco UCS Fabric Interconnects.

Other Products

The Company�� other products category primarily consists of Linksys home networking products, certain emerging technologies, and other networking products. In addition to its product offerings, it provide a range of service offerings, including technical support services and advanced services.

The Company competes with Alcatel-Lucent; ARRIS Group, Inc.; Aruba Networks, Inc.; Avaya Inc.; Belden Inc.; Brocade Communications Systems, Inc.; Check Point Software Technologies Ltd.; Citrix Systems, Inc.; D-Link Corporation; LM Ericsson Telephone Company; Extreme Networks, Inc.; F5 Networks, Inc.; Force10 Networks, Inc.; Fortinet, Inc.; Hewlett-Packard Company; Huawei Technologies Co., Ltd.; International Business Machines Corporation; Juniper Networks, Inc.; LogMeIn, Inc.; Meru Networks, Inc.; Microsoft Corporation; Motorola, Inc.; NETGEAR, Inc.; Polycom, Inc.; Riverbed Technology, Inc.; and Symantec Corporation.

Top Value Companies For 2014: Falcon Ventures International I (FIX.V)

Firebird Resources Inc. engages in the acquisition, exploration, and development of mineral properties in Canada and the United States. The company primarily focuses on three gold prospects in South Carolina. It holds interests in the Buzzard project, which is located in Lancaster County, South Carolina; Jefferson project located east of the Brewer mine; and the Belk project that is located east of Lancaster, South Carolina. The company was formerly known as Falcon Ventures International Inc. and changed its name to Firebird Resources Inc. in November 2009. Firebird Resources Inc. is headquartered in Toronto, Canada.

Hot Diversified Bank Stocks To Watch For 2014: Peoples Financial Corporation(PFBX)

Peoples Financial Corporation operates as the bank holding company for The Peoples Bank, which provides banking products and services to individuals and small to middle market businesses in Mississippi. The company offers deposit services, such as interest bearing and non-interest bearing checking accounts, savings accounts, certificates of deposit, and IRA accounts, as well as non-deposit funds management accounts. It also provides loan products, such as business, commercial, real estate, construction, personal, and installment loans. In addition, the company offers personal trust, agencies, and estate services, including living and testamentary trusts, executorships, guardianships, and conservatorships. Further, it provides benefit accounts, which include self-directed individual retirement accounts, as well as provides escrow management, stock transfer, and bond paying agency accounts to corporate customers. Additionally, the company offers other services, including saf e deposit box rental, wire transfer services, night drop facilities, collection services, cash management, and Internet banking services. As of December 31, 2010, it operated 15 branches in Harrison, Hancock, Jackson, and Stone Counties; and 51 automated teller machines. The company was founded in 1896 and is headquartered in Biloxi, Mississippi.

Hot Diversified Bank Stocks To Watch For 2014: Keynote Systems Inc.(KEYN)

Keynote Systems, Inc. provides Internet and mobile cloud monitoring and testing solutions worldwide. The company?s Internet cloud products and services comprise Transaction Perspective for visibility into the performance and availability of Web transactions; Application Perspective, a Web application monitoring service; Cloud Application Perspective that provides software-based performance monitoring; Private Agents for the performance of mission critical extranet and intranet applications; Streaming Perspective to measure, compare, and assure the performance of audio and video streams; and Performance Scoreboard, a custom dashboard to monitor Web performance. Its Internet cloud products and services also include Enterprise Adapters to integrate performance measurement data into enterprise systems management platforms; Keynote Internet Testing Environment, a desktop tool for real-time testing, diagnosing, and troubleshooting Web performance issues; LoadPro, a Web load tes ting service; Test Perspective, a self-service load testing service; Red Alert to test devices connected to the Internet; and consulting services, such as performance insights, Web site performance assessment, automated reporting, and custom competitive research. In addition, the company?s mobile cloud products and services primarily consist of System Integrated Test Environment System to test and measure the quality and reliability of mobile networks and applications, and content delivery for mobile operators; GlobalRoamer to certify and validate roaming agreements; Mobile Device Perspective to enhance the quality of mobile content, applications, and services; Mobile Web Perspective to monitor and troubleshoot the quality and performance for mobile Web sites; and Mobile Internet Testing Environment, a desktop tool. Further, it offers professional services, mobile competitive monitoring and analysis, and mobile insights. The company was founded in 1995 and is headquartered in San Mateo, California.

Hot Diversified Bank Stocks To Watch For 2014: K-Swiss Inc.(KSWS)

K-Swiss Inc. designs, develops, and markets footwear, apparel, and accessories for athletic, sports, and fitness activities, as well as casual wear under the K-Swiss brand. The company also offers footwear for adventurers for various terrains under the Palladium brand. Its products include tennis and running collection apparels, such as skirts, shorts, tops, polos, dresses, and warm-ups for men and women; and casual athletic apparels consisting of jackets, sweaters, sweatshirts, track jackets, tee shirts, caps, socks, and bags. The company sells its products through sales executives and independent sales representatives primarily to specialty athletic footwear stores, pro shops, sporting good stores, and department stores. It also offers its products through its Website, kswiss.com, as well as through foreign distributors. The company has operations in the United States, Europe, the Middle East, Africa, and internationally. K-Swiss Inc. was founded in 1966 and is headquart ered in Westlake Village, California.

Advisors' Opinion:
  • [By Andrew]

    I know I said no particular order but this is by far my favorite stock this year.  Unless you are incredibly risk adverse, I highly recommend putting as much money as you can into this stock.  The analysts don’t get it.  This is a forward thinking California based company and they are changing the shoe industry.  The market cap is tiny at the moment.  Just to put things into perspective, $100 invested in K-Swiss would give you about the same % ownership as $20 000 invested in Nike.  The costly re branding campaign has hurt the stock a lot but a lot of this marketing campaign is viral.  It is sitting on Youtube for free and people are actively wat ching the commercials and telling their friends about it.  People are joining the Facebook Page in droves and I’ve read pretty much only great reviews for the K-Swiss Tubes.  I’m actually wearing a pair as I write this article and they are fabulous.  The K Swiss Tubes are in my opinion the best cross trainers for 2011-2012.  I love sports myself and I’ve owned the recent stuff from all the top brands.  K Swiss is sponsoring the right people in growing industries.  Fox Sports signed a massive deal with the UFC and it will invariably make the UFC even more popular than it is now.  Instead of only being able to watch UFC on PPV, you can now watch a lot of ev ents over the next several years on Fox sports.  K Swiss has signed some of the best athletes like Jon “Bones” Jones and they are making all the right re branding moves.  Go to Youtube and type in “Kenny powers Kswiss” and you’ll see what I mean.  Read the comments there and on their growing facebook page.  Buy yourself this stock and a pair of Tubes.  Best move you can make.  FYI, the CEO owns about a 20% stake in the company and has a lot of incentive to make it work.  He’s got a proven track record of digging himself out of trouble before and ! he’s poised to do it again in the biggest way yet.

Saturday, June 29, 2013

Moog Nabs F-15 Contract Win

East Aurora, N.Y.-based Moog  (NYSE: MOG-A  ) (NYSE: MOG-B  ) has won a potentially lucrative contract from Boeing (NYSE: BA  ) .

On Friday, Moog announced the contract win (but not the contract value) -- a deal to have Moog design, develop, and qualify after testing the Weapons Bay Actuation System for the F-15 Silent Eagle. In laymen's terms, what it will be building is the motor that opens the airplane's "bomb-bay doors." Moog explains that the system will include "the main controller, electric power drives for both rotary and linear actuation, rotary mechanical drive trains (rotary geared actuators, angled gearboxes and torque tubes), and an energy management sub-system."

Moog has been designing such systems for the F-15 since the plane's introduction in the early 1970s. Its latest contract will have it building parts for the latest version of the plane, the F-15SE. This is also the plane that Boeing has proposed selling to South Korea as part of its $2.4 billion "F-X III" air force upgrade. Hence, a win for Boeing on that contract could mean immediate revenues for Moog.

Embraer May Land Multibillion-Dollar E-Jets Sale to ILFC

Brazilian planemaker Embraer (NYSE: ERJ  ) is in line to sign as many as 100 new airplane sales to AIG (NYSE: AIG  ) airplane leasing subsidiary International Lease Finance Corporation, or IFLC.

Yesterday, Embraer announced that it has signed a letter of intent with ILFC, describing plans by the latter to purchase 25 of Embraer's second-generation E190-E2 aircraft, and 25 more second-gen E195-E2s. According to the terms of the LOI, ILFC is also taking out options to purchase a further 25 E190-E2 and 25 E195-E2 -- potentially doubling the size of the base order.

ILFC has also now officially become "the launch customer" -- i.e., the first customer to buy the plane -- among aircraft leasing companies. In a statement, its CEO, Henri Courpron, was quoted saying, "We are pleased to be a lessor launch customer for the new E-Jets E2 and look forward to growing our relationship with Embraer."

The new family of E2 Embraers includes three models available for sale, the E190-E2 and E195-E2 that ILFC is buying, and also a smaller jet dubbed the E175-E2. Pricing on the new planes does not yet appear to be public, but pricing of the previous generation of E-Jets was roughly $32 million for the first-gen E190, and $40 million for the E-195, suggesting that this deal could ultimately be worth as much as $7.2 billion to Embraer.

Deliveries are slated to begin in H1 2018.

Friday, June 28, 2013

Why Transocean Is Poised to Bounce Back

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, offshore drilling giant Transocean (NYSE: RIG  ) has earned a coveted five-star ranking.

With that in mind, let's take a closer look at Transocean and see what CAPS investors are saying about the stock right now.

Transocean facts

 

 

Headquarters (founded)

Vernier, Switzerland (1953)

Market Cap

$17.9 billion

Industry

Oil and gas drilling

Trailing-12-Month Revenue

$9.3 billion

Management

CEO Steven Newman

CFO Esa Ikaheimonen

Return on Equity (average, past 3 years)

(7.5%)

Cash/Debt

$3.7 billion / $11.2 billion

Dividend Yield

4.5%

Competitors

Ensco

Noble 

Saipem

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 98% of the 6,064 members who have rated Transocean believe the stock will outperform the S&P 500 going forward.

Just last week, one of those Fools, TempoAllegro, tapped Transocean as a particularly attractive bargain opportunity:

Transocean is an experienced, worldwide underwater oil driller still available at a discount. It has a large enough footprint in this industry to weather just about any storm, and deepwater drilling won't get done without experienced operators like Transocean (RIG).

Of course someone investing in Transocean needs to be aware of the ongoing drag of potential liabilities for the Deepwater Horizon catastrophe, however, it can be safely assumed that Transocean would have been the last to want to see its rig sunk and its men killed. While the legal cases are ongoing, logically, one would think the owner of the field that pushed to stay on schedule, possibly at the risk of overlooking safety concerns – the same company that has already offered to pay the lion's share of the cleanup costs – would bear most of the responsibility. Or the other company that did not properly seal the cement casing on the well that caused the blowout would be more liable. No matter how you slice it, Transocean did not want this to happen and more of the blame will likely fall on its partners. With this in mind, shares are artificially depressed, and will eventually bounce back.

If you want market-topping returns, you need to put together the best portfolio you can. Of course, despite its five-star rating, Transocean may not be your top choice.

We've found another energy play we are incredibly excited about -- excited enough to dub it "The Only Energy Stock You'll Ever Need." We have compiled a special free report for investors to uncover this stock today. The report is 100% free, but it won't be here forever, so click here to access it now.

Thursday, June 27, 2013

Top 5 Paper Companies To Watch For 2014

I love Father's Day. No, it's not because I think it's such a special day that everyone awaits with anticipation. Let's be real here: It's always going to be the runner-up to Mother's Day -- not that there's anything wrong with that.

Father's Day-sized returns
No, there are two main reasons I love Father's Day: I'm a proud father myself, and Father's Day just makes me think of my dad and all the things he's done for me. Simple as that.

I owe my love of investing to my father. And with that in mind, I give you the Father's Day Portfolio. These are 10 stocks that remind me of my dad, and together they will form a formidable, market-beating team that will offer investors outstanding returns for years to come.

Dick's Sporting Goods� (NYSE: DKS  ) is a family affair. CEO Edward Stack is the son of founder Richard Stack, and he owns close to 18%�of the shares outstanding. I like what this company has done and where it's headed. It controls 8.5% of the tremendous sporting-goods market. Boston Beer� (NYSE: SAM  ) �seems an appropriate call here. Having a beer with your dad is one of the great moments in life, and given that this company sold more than 50 beer varieties under the Samuel Adams brand in 2012, chances are pretty darn good that there may be a Sam Adams in Dad's fridge. My dad drives a�Ford� (NYSE: F  ) Expedition, and he's owned a few other Fords in his life. Every time I see the blue oval I think of him, and I think this company will play a big part in the fast-changing automobile market.� I smile so wide it looks like I have a coat hanger in my mouth when I see my dad using his iPhone and iPad, courtesy of�Apple. The guy turned 71 this Father's Day (happy birthday, Dad!) and he's embraced technology like a 15-year-old. We all know that if you have a question these days you can just ask�Google. These guys do a lot of things well, but search and maps are their specialty. It's not just iDevices for my dad, either. He loves his new Kindle Paperwhite from Amazon.com, not to mention the fact that he can order just about anything from the e-commerce giant. My dad's a doctor, and�St. Jude Medical� (NYSE: STJ  ) is a device company that has a wonderfully diverse product mix. From heart devices to strokes, Parkinson's, and migraines, �this company is playing a big role in up-and-coming medical technology. Shout-out No. 1 to our Georgia roots: Home Depot�is the mac-daddy of home-improvement retail, and whether you rent or own, you're going to need to go there at some point. The recent dividend boost and share-repurchase authorization are signs of things to come for shareholders at this Georgia-based company. E-commerce is in its early stages, and my second shout-out to Georgia is�United Parcel Service, which is one of the two big shippers that should benefit. I love this company's moat, and the capital-intensive nature of its market offers up some serious barriers to entry for competitors. As a doc, my dad knows the trouble medical waste presents, and�Stericycle (NASDAQ: SRCL  ) is the company that's taking care of business where this is concerned. Its competitive advantage only strengthens with time, and with a market cap under $10 billion, there's plenty of room to run.

For fathers and their children
I'll be tracking the results of this portfolio versus the S&P 500 indefinitely, beginning with the closing prices from Monday, June 17, 2013, and I'm confident that this one will be a long-term market-beater. This portfolio is just a simple way say thanks to my dad for the gift of investing. I count myself as very fortunate that we get to talk about investing (and golf ... lots of golf) all the time. Maybe this is one more thing we'll get to talk about for a long time to come.

Top 5 Paper Companies To Watch For 2014: Graphic Packaging Holding Co (GPK)

Graphic Packaging Holding Company (GPHC), incorporated on June 21, 2007, is a provider of packaging solutions for a variety of products to food, beverage and other consumer products companies. The Company is also a producer of folding cartons and coated unbleached kraft paperboard, coated-recycled board and multi-wall bags. The Company operates in two business segments: paperboard packaging and flexible packaging. The Company�� customers include beverage, food and other consumer products industries. The Company operates in four geographic areas: the United States/Canada, Central/South America, Europe and Asia Pacific. In December 2011, the Company combined its multi-wall bag and specialty plastics packaging businesses with the kraft paper and multi-wall bag businesses of Delta Natural Kraft, LLC and Mid-America Packaging, LLC (collectively DNK), both wholly owned subsidiaries of Capital Five Investments, LLC (CVI). Under the terms of the transaction, the Company formed a company, Graphic Flexible Packaging, LLC (GFP), in which it owns 87% interest. On April 29, 2011, the Company acquired all of the assets of Sierra Pacific Packaging, Inc. (Sierra), a producer of folding cartons, beverage carriers and corrugated boxes for the consumer packaged goods industry. In January 2013, the Company acquired Contego Packaging Holdings, Ltd.

Paperboard Packaging

The Company supplies paperboard cartons and carriers. The Company provides a range of paperboard packaging solutions for various end-use markets, such as beverage, including beer, soft drinks, energy drinks, water and juices; food, including cereal, desserts, frozen, refrigerated and microwavable foods and pet foods; prepared foods, including snacks, quick-serve foods for restaurants and food service products, and household products, including dishwasher and laundry detergent, healthcare and beauty aids, and tissues and papers. The Company produces paperboard at its mills; prints, cuts and glues (converts) the paperboard into fol! ding cartons at its converting plants; and designs and manufactures packaging machines that package bottles and cans and, to a lesser extent, non-beverage consumer products. The Company also installs its packaging machines at customer plants and provides support, service and performance monitoring of the machines. The Company offers a variety of laminated, coated and printed packaging structures that are produced from its coated unbleached kraft (CUK), coated-recycled board (CRB), kraft paper and uncoated-recycled board (URB), as well as other grades of paperboard that are purchased from third-party suppliers. The Company manufactures corrugated medium and kraft paper for sale in the open market and internal use.

Flexible Packaging

The Company�� flexible packaging segment includes multi-wall bags, plastics, labels, and the Pine Bluff, AR mill. The Company is a supplier of flexible packaging in North America. Its products include multi-wall bags, shingle wrap, plastic bags and film for building materials (such as ready-mix concrete), retort pouches (such as meals ready to go), medical test kits, batch inclusion bags and film. Its end-markets include food and agriculture, building and industrial materials, chemicals, minerals, pet foods, and pharmaceutical products. Approximately 27% of the plastics produced are consumed internally. The Company�� label business focuses on heat transfer labels and lithographic labels. The Company operates label plants, which produce labels for food, beverage, pharmaceutical, automotive, household and industrial products, detergents, and the health and beauty markets.

The Company competes with MeadWestvaco Corporation and Klabin Company.

Top 5 Paper Companies To Watch For 2014: Cornerstone Progressive Return Fund(CFP)

Cornerstone Progressive Return Fund is a closed-ended equity fund of fund launched and managed by Cornerstone Advisors, Inc. The fund invests funds investing in the public equity markets of the United States. It invests in stocks of companies operating across diversified sectors. Cornerstone Progressive Return Fund was formed on April 26, 2007 and is domiciled in the United States.

Hot Warren Buffett Stocks To Watch For 2014: CenturyLink Inc.(CTL)

CenturyLink, Inc., together with its subsidiaries, operates as an integrated communications company. The company provides a range of communications services, including voice, Internet, data, and video services in the continental United States. Its services include local exchange and long distance voice telephone services, as well as enhanced voice services, such as call forwarding, caller identification, conference calling, voicemail, selective call ringing, and call waiting; wholesale local network access services; and data services, including high-speed Internet access services, data transmission services over special circuits and private lines, and switched digital television services, as well as special access and private line services. The company also offers fiber transport, competitive local exchange carrier, security monitoring, and other communications, as well as professional and business information services. In addition, it provides other related services, such as leasing, selling, installing, and maintaining customer premise telecommunications equipment and wiring; payphone services; and network database services, as well as participates in the publication of local telephone directories. Further, the company offers printing, direct mail services, and cable television services; and wireless broadband Internet access services and satellite television services. As of December 31, 2010, it operated approximately 6.5 million telephone access lines. CenturyLink, Inc was founded in 1968 and is based in Monroe, Louisiana.

Advisors' Opinion:
  • [By Paul]

    CenturyLink (CTL), provides a range of communications services, including local and long distance voice, wholesale network access, high-speed Internet access, other data services, and video services in the continental United States. The company is a member of the elite dividend aristocrats index, and has raised dividends for 37 consecutive years. In comparison to the previous two telecom players, CenturyLink has been able to cover its distributions from EPS, although its payout ratio is a scary 92.70%. Yield: 7.20%.

Top 5 Paper Companies To Watch For 2014: Weyerhaeuser Company(WY)

Weyerhaeuser Company, a forest products company, grows and harvests trees, builds homes, and manufactures forest products worldwide. It grows and harvests trees for use as lumber, other wood and building products, and pulp and paper. The company manages 6.4 million acres of private commercial forestland; and has long-term licenses on 13.9 million acres of forestland. It also offers timber; minerals, such as rock, sand, and gravel, as well as oil and gas to construction and energy markets; logs; timberland tracts; and seed and seedlings, poles, plywood, and hardwood lumber products. In addition, the company provides structural lumber products for structural framing; engineered lumber products for floor and roof joists, and headers and beams; structural panels for structural sheathing, subflooring, and stair treading for wood products dealers, do-it-yourself retailers, builders, and industrial users. Further, it offers building products comprising cedar, decking, siding, ins ulation, rebar, and engineered lumber connectors. Additionally, the company offers fluff pulp for use in sanitary disposable products; papergrade pulp for printing and writing papers, and tissues; specialty chemical cellulose pulp for use in textiles, absorbent products, specialty packaging, and high-bulking fibers; liquid packaging board converted into containers; and slush and wet lap pulp for manufacturing paper products. It also constructs single-family houses, as well as develops residential lots and land for construction and sale; and master-planned communities with mixed-use property. The company sells its cellulose fibers products through direct sales network, and liquid packaging products directly to carton and food product packaging converters; and wood products through sales organizations and distribution facilities. Weyerhaeuser Company has been elected to be taxed as a real estate investment trust. The company was founded in 1900 and is headquartered in Federal Way, Washington.

Top 5 Paper Companies To Watch For 2014: Weatherford International Ltd(WFT)

Weatherford International Ltd. provides equipment and services used in the drilling, evaluation, completion, production, and intervention of oil and natural gas wells worldwide. It offers artificial lift systems, which include reciprocating rod lift systems, progressing cavity pumps, gas lift systems, hydraulic lift systems, plunger lift systems, hybrid lift systems, wellhead systems, and multiphase metering systems. The company also provides drilling services, including directional drilling, ?Secure Drilling? services, well testing, drilling-with-casing and drilling-with-liner systems, and surface logging systems; and well construction services, such as tubular running services, cementing products, liner systems, swellable products, solid tubular expandable technologies, and inflatable products and accessories. In addition, it designs and manufactures drilling jars, underreamers, rotating control devices, and other pressure-control equipment used in drilling oil and nat ural gas wells; and offers a selection of in-house or third-party manufactured equipment for the drilling, completion, and work over of oil and natural gas wells for operators and drilling contractors, as well as a line of completion tools and sand screens. Further, the company provides wireline and evaluation services; and re-entry, fishing, and thru-tubing services, as well as well abandonment and wellbore cleaning services; stimulation and chemicals, including fracturing and coiled tubing technologies, cement services, chemical systems, and drilling fluids; integrated drilling services; and pipeline and specialty services. It serves independent oil and natural gas producing companies. The company was founded in 1972 and is headquartered in Geneva, Switzerland.

Advisors' Opinion:
  • [By Tom Bishop]

    Weatherford International (WFT) is trading around $14. Weatherford is a leading provider of equipment and services to the oil and gas industry, based in Switzerland. These shares have traded in a range betwe en $10.85 to $26.25 in the last 52 weeks. The 50-day moving average is $15.46 and the 200-day moving average is $19.62. WFT is estimated to earn about 88 cents per share in 2011 and $1.67 for 2012. Analysts at UBS set a $28 price target for WFT share.

Wednesday, June 26, 2013

10 Best Airline Stocks To Watch For 2014

Delta Air Lines (NYSE: DAL  ) is one of the largest and most successful U.S. airlines today. In 2012, the company carried more than 100 million passengers on the way to earning an adjusted profit of $1.55 billion. This strong momentum has led to enviable gains for shareholders: Delta stock has nearly doubled since the beginning of December.

Delta Stock Chart, 12/3/12-6/14/13, data by YCharts

Among the many passengers flying Delta last year, one may have escaped notice: top competitor United Continental (NYSE: UAL  ) . United, which has performed far worse than Delta recently -- it earned an adjusted profit of just $589 million in 2012 despite being similar in size to Delta -- has nevertheless managed to ride Delta's coattails to stock greatness in the last six months.

10 Best Airline Stocks To Watch For 2014: Copa Holdings SA (CPA)

Copa Holdings, S.A. (Copa Holdings), incorporated on May 06, 1998, is a Latin American provider of airline passenger and cargo service through its two principal operating subsidiaries, Copa Airlines and Copa Colombia. Copa Airlines operates from its position in the Republic of Panama, and Copa Colombia provides service within Colombia and international flights from various cities in Colombia to Panama, Venezuela, Ecuador, Mexico, Cuba, Guatemala and Costa Rica, complemented with service within Colombia. As of December 31, 2012, the Company operated a fleet of 83 aircraft with an average age of 5.13 years; consisting of 57 modern Boeing 737-Next Generation aircraft and 26 Embraer 190 aircraft. . As of December 31, 2012, the Company offers approximately 334 daily scheduled flights among 64 destinations in 29 countries in North, Central and South America and the Caribbean, mainly from its Panama City Hub.

Copa provides passengers with access to flights to more than 150 other destinations through codeshare arrangements with UAL pursuant to which each airline places its name and flight designation code on the other�� flights. As of December 31, 2012, Copa had firm orders, including purchase and lease commitments, for 35 additional Boeing 737-Next Generation aircraft. Copa also has options for an additional 14 Boeing 737-Next Generation aircraft.

The Company competes with Avianca-Taca, American Airlines, Delta Air Lines, American Airlines and LAN Group.

Advisors' Opinion:
  • [By Kathy Kristof]

    Headquarters: Panama City, Panama

    52-Week High: $85.25

    52-Week Low: $57.03

    Annual Sales: $1.8 bill.

    Projected Earnings Growth: 18% annually over the next five years 


    U.S. airlines have to scratch and claw for every penny of profit they earn. Not so for Panama City-based Copa Holdings, says Bob McAdoo, airline analyst with Imperial Capital, a Los Angeles investment firm. With a hub in the Southern Hemisphere’s cross-roads, Copa has few direct rivals. That has allowed Copa to charge premium prices for its flights and register operating profit margins of 15% to 20% year after year. As economies in Brazil and the rest of Latin America continue to expand, Copa is likely to benefit because it gives travelers the most convenient way to hop around the hemisphere. 

    Copa’s big advantage lies in the setup of Panama City’s airport, explains McAdoo. Panama knows that it’s a crossroads, so it treats connecting passengers as though they’re hopping on a domestic flight – no trip through customs unless you leave the airport. That saves time, and potentially the need to get a visa for a country you’re just passing through, making the airport the ideal hub for business travelers in a hurry.

10 Best Airline Stocks To Watch For 2014: United Continental Holdings Inc.(UAL)

United Continental Holdings, Inc., through its subsidiaries, engages in the provision of passenger and cargo air transportation services. As of February 24, 2011, it operated a total of approximately 5,675 flights a day to 372 airports on 6 continents from their hubs in Chicago, Cleveland, Denver, Guam, Houston, Los Angeles, New York, San Francisco, and Tokyo, as well as in Washington, D.C. The company was formerly known as UAL Corporation and changed its name to United Continental Holdings, Inc. on October 1, 2010. United Continental Holdings, Inc. was founded in 1934 and is headquartered in Chicago, Illinois.

Advisors' Opinion:
  • [By Admin]  

    United Continental Holdings provides passenger and cargo air transportation services. UAL recently traded at $17.3 and lost 15.8% during the past 12 months. The stock has a market cap of $5.7 billion, P/E ratio of 12.5 and forward P/E ratio of 3.5. The stock has total debt/equity ratio of 7 and Beta of 1.04.

Best Sliver Companies To Watch For 2014: JetBlue Airways Corporation(JBLU)

JetBlue Airways Corporation provides passenger air transportation services in the United States. As of December 31, 2011, it operated approximately 700 daily flights to 70 destinations in 22 states, Puerto Rico, and Mexico; and 12 countries in the Caribbean and Latin America through a fleet of 120 Airbus A320 aircraft and 49 EMBRAER 190 aircraft. The company, through its subsidiary, LiveTV, LLC, provides in-flight entertainment, voice communication, and data connectivity systems and services for commercial and general aviation aircraft, including live in-seat satellite television, digital satellite radio, wireless aircraft data link service, and cabin surveillance systems. JetBlue Airways Corporation was founded in 1998 and is based in Forest Hills, New York.

10 Best Airline Stocks To Watch For 2014: Delta Air Lines Inc (DAL)

Delta Air Lines, Inc. (Delta) provides scheduled air transportation for passengers and cargo throughout the United States and around the world. The Company�� route network gives it a presence in every domestic and international market. Delta�� route network is centered around the hub system it operate at airports in Amsterdam, Atlanta, Cincinnati, Detroit, Memphis, Minneapolis-St. Paul, New York-JFK, Paris-Charles de Gaulle, Salt Lake City and Tokyo-Narita. Each of these hub operations includes flights that gather and distribute traffic from markets in the geographic region surrounding the hub to domestic and international cities and to other hubs. The Company�� network is supported by a fleet of aircraft that is varied in terms of size and capabilities.

Delta has bilateral and multilateral marketing alliances with foreign airlines to improve its access to international markets. These arrangements can include code-sharing, reciprocal frequent flyer program benefits, shared or reciprocal access to passenger lounges, joint promotions, common use of airport gates and ticket counters, ticket office co-location, and other marketing agreements. Its international code-sharing agreements enable it to market and sell seats to an expanded number of international destinations. The Company has international codeshare arrangements with Aeromexico, Air France, Air Nigeria, Alitalia, Aeroflot, China Airlines, China Eastern, China Southern, CSA Czech Airlines, KLM Royal Dutch Airlines, Korean Air, Olympic Air, Royal Air Maroc, VRG Linhas Aereas (operating as GOL), Vietnam Airlines, Virgin Australia and WestJet Airlines.

In addition to the Company�� marketing alliance agreements with individual foreign airlines, it is a member of the SkyTeam airline alliance. Delta also has frequent flyer and reciprocal lounge agreements with Hawaiian Airlines, and codesharing agreements with American Eagle Airlines (American Eagle) and Hawaiian Airlines. It has air service agreements with multiple do! mestic regional air carriers that feed traffic to its route system by serving passengers primarily in small-and medium-sized cities.

Through the Company�� regional carrier program, it has contractual arrangements with 10 regional carriers to operate regional jet and, in certain cases, turbo-prop aircraft using its DL designator code. In addition to Delta�� wholly owned subsidiary, Comair, it has contractual arrangements with ExpressJet Airlines, Inc. and SkyWest Airlines, Inc., both subsidiaries of SkyWest, Inc.; Chautauqua Airlines, Inc. and Shuttle America Corporation, both subsidiaries of Republic Airways Holdings, Inc.; Pinnacle Airlines, Inc. and Mesaba Aviation, Inc. (Mesaba), both subsidiaries of Pinnacle Airlines Corp. (Pinnacle); Compass Airlines, Inc. (Compass) and GoJet Airlines, LLC, both subsidiaries of Trans States Holdings, Inc. (Trans States), and American Eagle.

The Company�� SkyMiles program allows program members to earn mileage for travel awards by flying on Delta, Delta�� regional carriers and other participating airlines. Mileage credit may also be earned by using certain services offered by program participants, such as credit card companies, hotels and car rental agencies. In addition, individuals and companies may purchase mileage credits. The Company reserves the right to terminate the program with six months advance notice, and to change the program�� terms and conditions at any time without notice.

SkyMiles program mileage credits can be redeemed for air travel on Delta and participating airlines, for membership in the Company�� Delta Sky Clubs and for other program participant awards. Mileage credits are subject to certain transfer restrictions and travel awards are subject to capacity controlled seating. During the year ended December 31, 2011, program members redeemed more than 275 billion miles in the SkyMiles program for more than 12 million award redemptions. During 2011, 8.2% of revenue miles flown on Delta were from a! ward trav! el.

The Company generates cargo revenues in domestic and international markets through the use of cargo space on regularly scheduled passenger aircraft. Delta is a member of SkyTeam Cargo, an airline cargo alliance. SkyTeam Cargo offers a network spanning six continents and provides customers an international product line.

The Company has several other businesses arising from its airline operations, including aircraft maintenance, repair and overhaul (MRO); staffing services for third parties; vacation wholesale operations, and its private jet operations. Delta�� MRO operation, known as Delta TechOps, is an airline MRO in North America. In addition to providing maintenance and engineering support for its fleet of approximately 775 aircraft, Delta TechOps serves more than 150 aviation and airline customers. Its staffing services business, Delta Global Services, provides staffing services, professional security, training services and aviation solutions to approximately 150 customers. The Company�� vacation wholesale business, MLT Vacations, is the provider of vacation packages in the United States. Its private jet operations, Delta Private Jets, provides aircraft charters, aircraft management and programs allowing members to purchase flight time by the hour.

The Company competes with SkyTeam, United Air Lines, Continental Airlines, Lufthansa German Airlines, Air Canada, American Airlines, British Airways and Qantas.

10 Best Airline Stocks To Watch For 2014: Southwest Airlines Co (LUV)

Southwest Airlines Co., incorporated on March 9, 1967, operates Southwest Airlines, a passenger airline, which provides scheduled air transportation in the United States. As of December 31, 2011, the Company was serving 72 cities in 37 states throughout the United States. During the year ended December 31, 2011, the Company added addition services in two new states and three new cities: Charleston, South Carolina; Greenville-Spartanburg, South Carolina; and Newark, New Jersey. Southwest provides point-to-point. On May 2, 2011, the Company acquired AirTran Holdings, Inc. (AirTran).

AirTran�� route system provides hub-and-spoke, rather than point-to-point, service, with approximately half of AirTran�� flights originating or terminating at its hub in Atlanta, Georgia. AirTran also serves a range of markets with non-stop service from bases of operation in Baltimore, Maryland; Milwaukee, Wisconsin; and Orlando, Florida. As of December 31, 2011, AirTran was serving 68 United States and near-international destinations, including San Juan, Puerto Rico; Cancun, Mexico; Montego Bay, Jamaica; Nassau, The Bahamas; Oranjestad, Aruba; Punta Cana, Dominican Republic, and Bermuda. As of January 31, 2012, AirTran served 65 destinations. During 2011, approximately 71% of Southwest�� customers flew non-stop, and Southwest�� average aircraft trip stage length was 664 miles with an average duration of approximately 1.8 hours.

As of December 31, 2011, Southwest offered 25 weekday roundtrips from Dallas Love Field to Houston Hobby, 13 weekday roundtrips from Phoenix to Las Vegas, 13 weekday roundtrips from Burbank to Oakland, and 12 weekday roundtrips from Los Angeles International to Oakland. Southwest offers connecting service opportunities from over 60 Southwest cities to different Volaris airports in Mexico including Aguascalientes, Guadalajara, Mexico City (MEX), Mexico City-Toluca (TLC), Morelia, and Zacatecas. The Company�� International Connect portal conducts two separate transac! tions: one with Southwest�� reservation system and one with Volaris�� reservation system.

Southwest bundles fares into three categories: Wanna Get Away, Anytime, and Business Select. Wanna Get Away fares are lowest fares. Business Select fares are refundable and changeable, and funds may be applied toward future travel on Southwest. Business Select fares also include additional perks, such as priority boarding, a frequent flyer point multiplier, priority security and ticket counter access in select airports, and one complimentary adult beverage coupon for the day of travel. The Company�� Internet Website, southwest.com, is the avenue for Southwest Customers to purchase tickets online. During 2011, southwest.com accounted for approximately 78% of all Southwest bookings. During 2011, approximately 84% of Southwest�� Passenger revenues came through its Website, including revenues from SWABIZ, the Company�� business travel reservation Web page.

10 Best Airline Stocks To Watch For 2014: Latam Airlines Group SA (LFL)

LAN Airlines S.A. (LAN), incorporated in 1983, is the international and domestic passenger airline in Latin America and the cargo operator in the region. As of February 9, 2012, LAN and its affiliates provided domestic and international passenger services in Chile, Peru, Ecuador, Argentina and Colombia and cargo operations through the use of belly space on its passenger flights and cargo freighter aircraft through its cargo airlines in Chile, Brazil, Colombia and Mexico. LAN and its affiliates offered passenger flights to 15 destinations in Chile, 59 destinations in other South American countries, 15 destinations in other Latin American countries and the Caribbean, five destinations in the United States, two destinations in Europe and four destinations in the South Pacific and, through various codeshare agreements, service to 25 additional destinations in North America, 16 additional destinations in Europe, 27 additional destinations in Latin America and the Caribbean (including Mexico), and two destinations in Asia, as of February 9, 2012. LAN and its affiliates provide cargo service to all of their passenger destinations and to 20 additional destinations served only by freighter aircraft. LAN also offers other services, such as ground handling, courier, logistics and maintenance. LAN and its affiliates operated a fleet, with 135 passenger aircraft and 14 cargo aircraft as of December 31, 2011. On February 15, 2011, Lan Pax Group S.A., subsidiary of Lan Airlines S.A. acquired 100% of Colombian society AEROASIS S.A.

LAN is primarily involved in the transportation of passengers and cargo. Its operations are carried out principally by Lan Airlines and also by a number of different subsidiaries. As of February 28, 2011, in the passenger business the Company operated through six main airlines: Lan Airlines, Transporte Aereo S.A. (which does business under the name Lan Express), Lan Peru S.A. (Lan Peru), Aerolane Lineas Aereas Nacionales del Ecuador S.A. (Lan Ecuador), Lan Argentina S.A. (Lan ! Argentina, previously Aero 2000 S.A.) and the Aerovias de Integracion Regional, Aires S.A. (Aires). As of February 28, 2011, the Company held a 99.9% interest in Lan Express through direct and indirect interests, a 70.0% interest in Lan Peru through direct and indirect interests, a 71.9% indirect interest in Lan Ecuador, a 99.0% indirect interest in Lan Argentina and a 94.99% indirect interest in Aires (a Colombian entity which was acquired on November 26, 2010). Its cargo operations are carried out by a number of companies, including Lan Airlines and Lan Cargo. As of February 28, 2011, the Company held a 69.2% interest in Aero Transportes Mas de Carga S.A. de C.V. (MasAir), through direct and indirect participations, a 73.3% interest in ABSA through direct and indirect participations, and a 90.0% interest in LANCO through direct and indirect participations. In the cargo business, the Company markets itself primarily under the Lan Cargo brand. In addition to its air transportation activities, the Company provides a series of ancillary services. It offers handling services, courier services and logistics, small package and express door-to-door services through Lan Airlines and various subsidiaries.

Passenger Operations

As of February 28, 2011, the Company operated passenger airlines in Chile, Peru, Ecuador, Argentina and Colombia. As of February 28, 2011, our passenger operations were performed through airlines in Chile, Peru, Ecuador, Argentina and Colombia where we operate both domestic and international services. As of February 28, 2011, the Company�� network consisted of 15 destinations in Chile, 14 destinations in Peru, four destinations in Ecuador, 14 destinations in Argentina, 24 destinations in Colombia, 14 destinations in other Latin American countries and the Caribbean, five destinations in the United States, one destination in Canada, three destinations in Europe and four destinations in the South Pacific. Within Latin America, it has routes to and from Argentina, B! olivia, B! razil, Chile, Colombia, Cuba, the Dominican Republic, Ecuador, Mexico, Peru, Uruguay and Venezuela. The Company also flies to a variety of international destinations outside Latin America, including Auckland, Fort Lauderdale, Frankfurt, Los Angeles, Madrid, Miami, Mount Pleasant (Falkland Islands), New York, Toronto, Papeete (Tahiti), Paris, San Francisco, and Sydney. In addition, as of February 28, 2011, through its various code-share agreements, the Company offered service to 25 additional destinations in North America, 16 additional destinations in Europe, 25 additional destinations in Latin America and the Caribbean (including Mexico), and two destinations in Asia. As of February 28, 2011, the Company operated scheduled international services from Chile, Peru, Ecuador and Argentina through Lan Airlines; Lan Express in Chile; Lan Peru in Peru; Lan Ecuador in Ecuador; Lan Argentina in Argentina and Aires in Colombia. Its international network combines the Company�� Chilean, Peruvian, Ecuadorian, Argentinean and Colombian affiliates. It provides long-haul services out of its four main hubs in Santiago, Lima, Guayaquil and Buenos Aires. It also provides regional services from Chile, Peru, Ecuador and Argentina.

Cargo Operations

The Company�� cargo business operates on the same network used by the passenger airlines business, which is supplemented by freighter-only operations. The Company carries cargo for a variety of customers, including other international air carriers, freight-forwarding companies, export oriented companies and individual consumers. As of February 28, 2011, the Company operated a fleet of 140 aircraft, comprised of 126 passenger aircraft and 14 cargo aircraft.

The Company competes with UPS, FedEx, Centurion, Transportes Aereos Mercantiles Panamericanos S.A., Polar Air, Cargolux, Lufthansa Cargo, Martinair and Air France-KLM.

Monday, June 24, 2013

5 Best Cheapest Stocks To Buy Right Now

If you want to invest in stocks and do well at it, you need to choose your holdings carefully. There are two key factors to keep in mind -- quality and price.

Imagine buying a home, or a car, or even a pair of shoes. You probably won't just buy the loveliest house you see -- as you may not be able to afford it. You probably won't buy the cheapest car you can find, either, because it's not likely to perform well. It's the same when you target stock bargains. A true bargain will be both attractively priced and high-quality.

Seek high quality
Quality matters when you want to target stock bargains, because a high-quality company will have sustainable competitive advantages that will help it keep performing well. Its size might give it economies of scale, for example, or might have consumers sort of locked into its system and reluctant to switch. That can happen with email service providers, as it's a headache to send everyone your new email address. Or consider robotic surgery giant Intuitive Surgical (NASDAQ: ISRG  ) . Once a hospital buys its machines, it won't be likely to buy one from a competing company, as its doctors will have learned how to use Intuitive's machines. Meanwhile, Intuitive will get to collect a lot of recurring revenue from the hospital, in the form of service contracts and supplies for the machines.

5 Best Cheapest Stocks To Buy Right Now: United Bancorp Inc.(UBCP)

United Bancorp, Inc. operates as the holding company for The Citizens Savings Bank that provides various commercial and retail banking products and services in the northeastern, eastern, southeastern, and south central Ohio. Its deposit products include interest-bearing deposits, certificates of deposit, demand deposits, savings accounts, NOW accounts, and money market deposits. The company?s loan portfolio comprises commercial, real estate, installment, and consumer loans, as well as letters of credit and lines of credit. It also offers brokerage, night deposit, safe deposit box, and automatic teller machine services. United Bancorp provides banking services through its main office and stand alone operations center in Martins Ferry, Ohio; and 19 branches in Belmont, Harrison, Jefferson, Tuscarawas, Carroll, Athens, Hocking, and Fairfield counties, as well as in the surrounding localities. The company was founded in 1974 and is headquartered in Martins Ferry, Ohio.

5 Best Cheapest Stocks To Buy Right Now: Panther Secs(PNS.L)

Panther Securities P.L.C. invests and deals in real estate properties and securities in the United Kingdom. It invests primarily in commercial properties, such as offices, retail units, and bars. The company also invests in residential properties and industrial estates. In addition, it provides real-time information systems, including bookmaking, broadcasting, and digital signage. The company was incorporated in 1934 and is based in London, the United Kingdom.

Top Regional Bank Companies To Buy For 2014: Targacept Inc.(TRGT)

Targacept, Inc., a biopharmaceutical company, engages in the discovery, design, and development of neuronal nicotinic receptors (NNR) therapeutics for the treatment of diseases and disorders of the nervous system. Its products include TC-5214, a nicotinic channel modulator, which is in Phase III clinical trials as an adjunct treatment for depressive disorder; and in Phase IIb clinical trial for switch monotherapy in patients with depressive disorder. The company?s small molecule products include TC-5619, which is under two separate Phase II clinical trials to treat negative symptoms and cognitive dysfunction in schizophrenia, inattentive-predominant attention deficit/hyperactivity disorder, and Alzheimer?s disease; AZD3480, a product under Phase IIb clinical trials for the treatment of mild to moderate Alzheimer?s disease; AZD1446 for treatment of Alzheimer?s disease; TC-6987 under Phase II clinical trials to treat asthma and type 2 diabetes; and TC-6499 for the treatm ent for gastrointestinal disorders. It has a collaborative research and license agreement with AstraZeneca AB for the development and commercialization of AZD3480, TC-5214, and TC-5619; and a product development and commercialization agreement with SmithKline Beecham Corporation and Glaxo Group Limited to discover, develop, and market product candidates that selectively target specified NNR subtypes in specified therapeutic focus areas. Targacept, Inc. was founded in 1997 and is based in Winston-Salem, North Carolina.

5 Best Cheapest Stocks To Buy Right Now: Altra Holdings Inc.(AIMC)

Altra Holdings, Inc., through its subsidiary, Altra Industrial Motion, Inc., designs, produces, and markets a range of mechanical power transmission and motion control products worldwide. The company provides industrial clutches and brakes for elevators, forklifts, lawn mowers, oil well draw works, punch presses, and conveyors; open and enclosed gearing products for conveyors, ethanol mixers, packaging machinery, and metal processing equipment; and engineered couplings for extruders, turbines, steel strip mills, and pumps. It also offers engineered bearing assemblies for cargo rollers, seat storage systems, and conveyors; power transmission components for conveyors, lawn mowers, and machine tools; and engineered belted drives for pumps, sand and gravel conveyors, and industrial fans. The company sells its products under the Warner Electric, Boston Gear, TB Wood?s, Kilian, Nuttall Gear, Ameridrives, Wichita Clutch, Formsprag Clutch, Bibby Transmissions, Stieber, Matrix, In ertia Dynamics, Twiflex, Industrial Clutch, Huco Dynatork, Marland Clutch, Delroyd, Warner Linear, and Bauer Gear Motor brands through its sales force, industrial distributors, and independent sales representatives. It serves aerospace, energy, food processing, general industrial, material handling, mining, petrochemical, transportation, and turf and garden markets. The company is headquartered in Braintree, Massachusetts.

5 Best Cheapest Stocks To Buy Right Now: Royale Energy Inc.(ROYL)

Royale Energy, Inc. operates as an independent oil and natural gas producer in the United States. It engages in the production and sale of oil and natural gas; acquisition of oil and gas lease interests and proved reserves; drilling of exploratory and development wells; and sale of working interests in wells to be drilled. The company also owns wells and leases located principally in the Sacramento Basin and San Joaquin Basin in California, as well as in Utah, Texas, and Louisiana. In addition, it holds proved developed producing reserves of oil and natural gas in Texas and Louisiana. As of December 31, 2009, Royale Energy operated 52 natural gas wells in California; owned and operated 7 natural gas wells in Utah; and had non operating interests in 17 oil and gas wells in Texas, 3 in Oklahoma, 1 in California, and 2 in Louisiana. It also had proved developed reserves of 4,563 MMcf and total proved reserves of 4,617 MMcf of natural gas; and proved developed oil reserves of 16 Mbbl and total proved oil reserves of 16 Mbbl. The company was founded in 1986 and is based in San Diego, California.

Sunday, June 23, 2013

"Monsters University" Keeps Pixar Hit Streak Alive; Rakes in $82 Million

2013 is shaping up to be a very good year for Hollywood. Early estimates show Monsters University set to take in $82 million at the box office this weekend. That left the film well clear of a surprisingly strong performance from Brad Pitt's World War Z, which collected $66 million. Last week's winner, Man of Steel eased back 65% from its performance last weekend; posting about $41.2 million in box office receipts over the weekend. 

Overall, the weekend box office is 43% above the same weekend last year. 

Pixar's Winning Streak Survives

Monsters University is Pixar's 14th major film, and maintains the studio's record of all its features hitting number one on their opening weekend. While the film scored a 78% on film review aggregator Rotten Tomatoes, below Monster's score of 96%, audiences liked the film enough to award it an 'A' CinemaScore. The opening weekend total is also Pixar's second largest total ever, behind Toy Story 3's $110 million. 

The excellent early results from Monsters University, both financially and from audience reviews, is a boon for parent company Disney  (NYSE: DIS  ) . Pixar will release a new film next year titled The Good Dinosaur and has two films in the pipeline for 2015, including a sequel to Finding Nemo. With Finding Nemo having grossed $339 million domestically back in 2003 and remaining one of the most beloved films in Pixar's library, 2015 could be a studio's most successful year yet. 

Zombies remain hot 

Paramount, a subsidiary of Viacom  (NASDAQ: VIA  ) , was right to expect the worst from World War Z. Despite the presence of a strong leading man in Brad Pitt and the ability to ride a zombie phenomenon that's led to Walking Dead becoming the break-out hit of cable TV, the film has long looked troubled. After executives first screened the movie, they famously deemed the last third of the movie so incoherent (and bleak) that the entire last 40 minutes of the film was reshot. The end result was terrible buzz around the film and a production budget reportedly clocking in around $190 million. 

Yet, reviews of the new ending were far more forgiving and a last minute marketing push also helped the film's fortune. The $66 million the film took in this weekend domestically is well above earlier forecasts which had pegged the film in the $40 million range. Add in international markets and the film's box office rises to $112 million. At the end of the day, the film's performance is more a sigh of relief for its financial backers and also evidence the craze around zombies remains very hot. 

Superman keeps flying high

Time Warner's (NYSE: TWX  )  Man of Steel slid 65% back to $41 million this weekend, but still remains a success story for the studio. The key area of focus this weekend was international markets. The film kept expanding, and through just two weekends has $188 million in international markets. 

That's a very key storyline to focus on. Consider that Disney's Iron Man 3 has about $400 million domestically, but over $800 million in foreign markets. That leaves its international haul at about 2/3 of its total box office. Time Warner's last breakout hit in the DC comic book universe was its Dark Knight trilogy. In that trilogy The Dark Knight's box office was only 47% international. The final film in the series, The Dark Knight Rises saw its international total expand to 59% of the box office. That's a comparable level of international sales to Disney's The Avengers. 

With talks heating up that Time Warner plans on focusing on a Justice League film in 2015 that will use its arsenal of DC comic book characters to compete with The Avengers, Man of Steel's expanding international total and the final film of the Dark Knight trilogy scoring well overseas point toward Justice League film scoring an eye-popping global box office total. 

Overall, not a lot of bad news out of Hollywood this weekend. 

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Saturday, June 22, 2013

Best Specialty Retail Companies For 2014

This series, brought to you by Yahoo! Finance, looks at which upgrades and downgrades make sense, and which ones investors should act on. Today, our headlines include new buy ratings for a pair of specialty retailers, Coach (NYSE: COH  ) and Aeropostale (NYSE: ARO  ) . Meanwhile in mining, Freeport-McMoRan (NYSE: FCX  ) suffers a downgrade. Let's dive right in, beginning with why...

Coach is fashionable again
The day dawned bright for Coach investors Wednesday, as analysts at CLSA upped their rating to "buy" in response to a strong earnings report featuring 7% first-quarter sales growth and a 10% bump in earnings per share.

In each case, these numbers beat estimates, and analysts were particularly enthused over Coach's 40% jump in sales in China. But does all this mean that you should now follow their advice, and rush out and buy yourself some Coach shares?

Best Specialty Retail Companies For 2014: Xerium Technologies Inc.(XRM)

Xerium Technologies, Inc. manufactures and supplies consumable products used in the production of paper clothing and roll covers primarily in North America, Europe, South America, and the Asia-Pacific. It operates in two segments, Clothing and Roll Covers. The Clothing segment provides various types of industrial textiles used on paper-making machines and other industrial applications. This segment offers forming fabrics, press felts, and dryer fabrics; and fabrics used in other industrial applications, such as pulp, steel, plastics, leather, and textiles manufacturing. The Roll Covers segment manufactures, refurbishes, and replaces roll covers for working rolls, including vacuum rolls and press rolls; calendar rolls; and coater rolls that are used on paper-making machines. This segment also refurbishes previously installed roll covers; provides mechanical maintenance and repair services for the internal mechanisms of rolls used on paper-making machines; and manufactures a nd repairs spreader rolls. The company markets its products through its direct sales force under Huyck Wangner, Weavexx, Stowe Woodward, Mount Hope, Robec, and Xibe brand names. Xerium Technologies, Inc. was founded in 1999 and is headquartered in Raleigh, North Carolina.

Best Specialty Retail Companies For 2014: SkyPeople Fruit Juice Inc.(SPU)

SkyPeople Fruit Juice, Inc., through its subsidiaries, engages in the production and sale of fruit juice concentrates, fruit beverages, and other fruit related products in the People?s Republic of China. It offers fruit concentrates, such as fruit purees, concentrated fruit purees, and concentrated apple, pear, and kiwifruit juices; fruit juice and fruit cider beverages that include apple juice, pear juice, kiwifruit juice, mulberry juice, kiwifruit cider, and mulberry cider; and other fruit related products, such as organic and non-organic fresh fruits, fresh vegetables, dried fruits, preserved fruits, fructose, concentrated turnjujube juice, kiwifruit seeds, and apple spice. The company sells its products directly to hotels, supermarkets, whole sellers, and other outlets, as well as to end-users; and through distributors and trade Web sites. SkyPeople Fruit Juice, Inc. also exports its products to the United States, the European Union, South Korea, Russia, and the Middl e East. The company is headquartered in Xi?an, the People?s Republic of China.

Top 5 Safest Companies To Buy For 2014: Wireless Telecom Group Inc.(WTT)

Wireless Telecom Group, Inc., together with its subsidiaries, engages in the design, manufacture, and supply of noise source products, electronic testing and measurement instruments, and passive components to commercial customers, the U.S. Government, and prime defense contractors. The company offers a range of noise source products, including components and instruments that are primarily used as a method of testing to determine if communications systems are capable of receiving the information being transmitted; and a line of broadband test equipment to cable television and cable modem industries for measuring CATV equipment, data-over-cables, and digital TVs. Its noise source products are used as a reference standard in test instruments that measure unwanted noise and interference in devices and components utilized in various communications equipment; coupled with other electronic devices for use as a means of jamming, blocking, and disturbing enemy radar and other commu nications; and used in radar systems as part of built-in test equipment to monitor the radar receiver and in satellite communications. The company also designs and produces electronic testing and measuring instruments, including power meters; passive inter modulation test equipment for cellular transmission signals; voltmeters; capacitance meters; audio and modulation meters; and accessory products. In addition, it designs and manufactures passive microwave components for the wireless infrastructure market and for other commercial, aerospace, and military markets. The company?s passive components are used in microwave systems, UMTS, PCS and cellular communications base stations, television transmitters, avionic systems, and medical electronics. It markets its products through its in-house sales people, as well as through manufacturers? representatives and distributors worldwide. Wireless Telecom Group, Inc. was founded in 1985 and is headquartered in Parsippany, New Jersey.< /p>

Best Specialty Retail Companies For 2014: Laboratory Corporation of America Holdings(LH)

Laboratory Corporation of America Holdings operates as an independent clinical laboratory company in the United States. The company offers a range of testing services used by the medical profession in routine testing, patient diagnosis, and in the monitoring and treatment of disease, as well as specialty testing services. Its routine tests include blood chemistry analyses, urinalyses, blood cell counts, thyroid tests, Pap tests, HIV tests, microbiology cultures and procedures, and alcohol and other substance-abuse tests. The company?s specialty tests and related services comprise viral load measurements, genotyping and phenotyping, and host genetic factors for managing and treating HIV infections; cytogenetic, molecular cytogenetic, biochemical, and molecular genetic tests for diagnostic genetics; oncology tests for diagnosing and monitoring certain cancers and treatments; clinical trials testing for pharmaceutical companies, which conducts clinical research trials on diag nostic assays; forensic identity testing used in criminal proceedings and parentage evaluation services, as well as testing services in reconstruction cases; allergy testing; and occupational testing for the detection of drug and alcohol abuse. Its customers include independent physicians and physician groups, hospitals, managed care organizations, governmental agencies, employers, pharmaceutical companies, and other independent clinical laboratories. The company operates a network of 51 primary laboratories and approximately 1,700 patient service centers. In addition, it delivers a co-branded electronic health records Lite solution for physician practices. The company works with university, hospital, and academic institutions, such as Duke University, The Johns Hopkins University, the University of Minnesota, and Yale University to license and commercialize new diagnostic tests. Laboratory Corporation of America Holdings was founded in 1971 and is headquartered in Burlingto n, North Carolina.

Advisors' Opinion:
  • [By Vita]

    Laboratory Corporation of America (LH),  or LabCorp, is one of the largest independent medical lab operators in the U.S., with more than 1,700 patient service centers that provide everything from run-of-the-mill blood tests to more specialized genoic and oncology testing.

    With analyst sentiment rising in shares of this $8.5 billion firm, it makes sense for investors to give LabCorp a closer look in 2012. In a business where size matters, LabCorp’s scale is a serious advantage — one that provides shareholders with some semblance of an economic moat in an otherwise commoditized business. By and large, patients don’t care where they get their medical tests done; as long as the lab is covered by their insurance, location is the deciding factor. As a result, LabCorp’s hard-to-replicate network makes this business look significantly less attractive to new potential rivals.

    That being said, the massive power wielded by insurance companies is a major concern for firms like LabCorp. Insurers negotiate pricing for lab tests across their networks, giving them pricing power over LH.

    At the same time, though, LabCorp’s push toward more advanced, proprietary tests gives the firm much less exposure to low-margin work and limits the risks of unfavorable insurance company negotiations.

    One big bet on LabCorp comes from Larry Robbins’ Glenview Capital Management; as of the most recently reported quarter, the stock comprised 1.1% of the total portfolio.

Best Specialty Retail Companies For 2014: Home Federal Bancorp Inc. of Louisiana(HFBL)

Home Federal Bancorp, Inc. of Louisiana operates as the holding company for Home Federal Bank, which provides financial services to individuals, corporate entities, and other organizations in northwest Louisiana. The company?s deposit products include savings accounts, NOW accounts, money market accounts, and certificate accounts, as well as passbook savings, certificates of deposit, and demand deposit accounts. Its loan portfolio comprises real estate loans, such as one to four family residential loans; commercial-real estate loans; multi-family residential loans; commercial business loans; land loans; construction loans; home equity and second mortgage loans; equity lines of credit; and consumer loans, including loans secured by deposit accounts, automobile loans, and other unsecured loans. The company also offers wealth management services. As of December 7, 2010, it operated through its main office, two branch offices, and one agency office in Shreveport, Louisiana. T he company is based in Shreveport, Louisiana.

Best Specialty Retail Companies For 2014: Dee Valley Water(DVW.L)

Dee Valley Group plc, through its subsidiary, Dee Valley Water plc, provides water services in north east Wales and west Cheshire. The company supplies potable water to approximately 110,000 households; and 8,000 commercial, industrial, and business customers. It operates 28 pumping stations and provides both drinking and non drinking water. The company supplies water from a network of eight impounding reservoirs and two underground sources. Dee Valley Group plc is based in Wrexham, the United Kingdom.

Mortgage Valuation Yield Curve And U.S. Treasury Forecast Show Dramatic Shifts

Today's forecast for U.S. Treasury yields is based on the June 20, 2013, constant maturity Treasury yields that were reported by the Board of Governors of the Federal Reserve System in its H15 Statistical Release at 4:15 p.m. ET on June 21, 2013. The forecast for primary mortgage market yields and the resulting mortgage servicing rights valuations are derived in part from the Federal Home Loan Mortgage Corporation Primary Mortgage Market Survey made available on the same day.

The U.S. Treasury "forecast" is the implied future coupon bearing U.S. Treasury yields derived using the maximum smoothness forward rate smoothing approach developed by Adams and van Deventer (Journal of Fixed Income, 1994) and corrected in van Deventer and Imai, Financial Risk Analytics (1996). The primary mortgage yield forecast applies the maximum smoothness approach to primary mortgage market credit spreads, which embed the risk neutral probabilities of mortgage default and prepayment risk. References explaining this approach are given below.

U.S. Treasury Yield Forecast

This week's projections for the one-month Treasury bill rate (investment basis) steepen dramatically at 2015 resulting in higher forecasts at the intermediate and long ends. The projected one-month rate of 4.165% in May 2023 is up 13 basis points from last week. The 10-year U.S. Treasury yield is projected to rise steadily to reach 4.302% on May 31, 2023, 17 basis points higher than projected last week.

(click to enlarge)

Mortgage Valuation Yield Curve and Mortgage Yield Forecast

The zero coupon yield curve appropriate for valuing mortgages in the primary mortgage market is derived from new issue effective yields reported by the Federal Home Loan Mortgage Corporation in its Primary Mortgage Market Survey. The maximum smoothness credit spread is produced so that this spread, in combination with the U.S. Tre! asury curve derived above, correctly values new 15-year and 30-year fixed rate mortgages at their initial principal value less the value of points. The next graph compares the implied 15-year fixed rate mortgage yield with the implied 15-year U.S. Treasury fixed rate amortizing yield over the next ten years.

(click to enlarge)

The effective yield on 15 -ear fixed rate mortgages is projected to rise from 3.141% today to 5.443% in 10 years, down 3 basis points compared to last week. The 15-year fixed rate mortgage spread over 15-year amortizing Treasury yields is forecasted to widen from its current level of 0.865% to 1.157% in 10 years, down 19 basis points from last week.

Implied Valuation of Mortgage Servicing Rights

Using the insights of Prof. Robert Jarrow noted below, we have derived the risk-neutral values of mortgage cash flows, which are based on market implied default risk and prepayment risk. We use these zero coupon bond prices to value mortgage-related cash flows relevant to mortgage servicing rights. These zero coupon bond prices, when multiplied by current primary mortgage market terms, value new mortgages at their principal value less the value of points:

(click to enlarge)

Today's implied mortgage valuation yield curve results in the following risk-neutral valuation split between interest-only and principal-only cash flows:

(click to enlarge)

We apply the same mortgage valuation yield curve zero coupon bond prices to various levels of net servicing fees to get their risk-neutral present value in today's market:

(click to enlarge)

If ! we use th! e market convention that the net cost to service is a constant dollar amount, the risk-neutral present value of the net cost to service can be derived using the same zero coupon bond prices from the mortgage valuation yield curve.

(click to enlarge)

Next, we value float per $100 of taxes and insurance on the underlying home. We assume that float is invested at the matched maturity U.S. Treasury forward rate for the matching float period below. The risk-neutral present value of the interest earned is calculated using the mortgage valuation yield curve, since an event of default or prepayment on the underlying mortgage ends this source of value. Value for a constant $100 amount is given here for "float periods" ranging from one-quarter of a month to a full month:

(click to enlarge)

Again, the same analysis can be done on an inflation adjusted basis with insurance and taxes tied to the value of the home. The value of float on the payment of interest and principal for various lengths of the "float period" is given in this table:

(click to enlarge)

Another important component of mortgage servicing rights valuation is the net impact of cash flows to the servicer from the events of default and prepayment. We can analyze this by asking this question: What would be the value of the mortgage if there were no events of default or prepayment? The answer is obtained by applying U.S. Treasury zero coupon bond rates to the scheduled mortgage cash flows. This table shows the net reduction in certain monthly cash flow that would be necessary for the value of the mortgage to adjust downward from this "no default/no prepayment value" to its current market valu! e, discou! nted by the U.S. Treasury zero coupon bond prices. This adjusted basis converts the random probability of losses from prepayment and default to a known, certain cost of prepayment and default in the form of this "implied net constant monthly cash flow reduction." The division of this negative cash flow impact between the servicer and other parties depends on the term of the servicing contract:

(click to enlarge)

Background Information on Input Data and Smoothing

The Federal Reserve H15 statistical release is available here.

The maximum smoothness forward rate approach to yield curve smoothing is detailed in Chapter 5 of van Deventer, Donald R., Kenji Imai and Mark Mesler, 2013, Advanced Financial Risk Management, 2nd edition, John Wiley & Sons, Inc., Singapore. The smoothing process for the maximum smoothness credit spread, derived from coupon-bearing bond prices, is given in Chapter 17 of van Deventer, Imai and Mesler (2013). Additional information on the maximum smoothness forward rate approach can be found at this link.

The maximum smoothness approach to credit spread smoothing is available at this related link.

The academic paper outlining the Jarrow-van Deventer approach to mortgage yield curve derivation was published in The Journal of Fixed Income: Jarrow, Robert A. and Donald R. van Deventer, "A Simple, Transparent and Accurate Mortgage Valuation Yield Curve," The Journal of Fixed Income, Winter 2013, Vol. 22, No. 3, pages 37-44.

The mortgage valuation yield curve insights depend heavily on this important paper: Jarrow, Robert A., "Risky Coupon Bonds as a Portfolio of Zero-Coupon Bonds," Finance Research Letters, 1, no. 2 (June 2004) pp. 100-105.

Today's U.S. Treasury Yield Forecast

The 10-year monthly forecast of U.S. Treasury yields is based on this data from the Federal Reserve H15 statistical release:

The graph below shows in three dimensions the movement of the U.S. Treasury yield curve 120 months into the future at each month-end:

(click to enlarge)
These yield curve movements are consistent with the continuous forward rates and zero coupon yields implied by the U.S. Treasury coupon bearing yields above:

(click to enlarge)

In numerical terms, forecasts for the first 60 months of U.S. Treasury yield curves are as follows:

(click to enlarge)
The forecast yields for months 61 to 120 are given here:

(click to enlarge)

Today's Forecast for Effective Primary Mortgage Market Yields

Today's forecast for the mortgage valuation yield curve is based on the following data from the Federal Home Loan Mortgage Corporation Primary Mortgage Market Survey:

(click to enlarge)

Only fixed-rate mortgage data is used in this analysis in order to avoid the more complex embedded options found in floating rate mortgages, with the risk that the mortgage valuation yield curve of fixed and floating rate mortgages is not identical. Applying the maximum smoothness forward rate smoothing approach to the forward credit spreads between the mortgage valuation yield curve and the U.S. Treasury curve results in the following zero coupon bond yields:

(click to enlarge)

The forw! ard rates! for the mortgage valuation yield curve and U.S. Treasury curve are shown here:

(click to enlarge)

Note: This mortgage analysis is updated weekly. Additional information is available from the author at info@kamakuraco.com.

Source: Mortgage Valuation Yield Curve And U.S. Treasury Forecast Show Dramatic Shifts

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article. (More...)

Friday, June 21, 2013

Top Consumer Stocks To Invest In Right Now

Tesla Motors (NASDAQ: TSLA  ) co-founder and CEO Elon Musk talked tonight about the company's fight to sell cars directly to its customers, and how national auto dealership groups are trying to keep them from doing that.

At Tesla's annual shareholders' meeting tonight, Musk said, "The automobile association is definitely creating some problems for us, making it harder to get things done." He said auto dealers talk about offering Tesla a franchise to sell its vehicles, but that nowhere in the past nine decades has that worked out for a start-up car company. "In the last 90 years, when did it work?" he asked. "There are no good examples."

Tesla wants to sell its vehicles directly to consumers, which goes against some states' legislation. The company has put up a public fight in several states over the issue. Musk said one of the main problems was that large national dealerships make their profits from services and that Tesla wouldn't be doing that. "Our philosophy in respect to service is not to make a profit on service," he said. "It's terrible to make a profit on service."

Top Consumer Stocks To Invest In Right Now: Oxford Industries Inc.(OXM)

Oxford Industries, Inc. engages in designing, sourcing, and marketing apparel products primarily in the United States and the United Kingdom. The company?s apparel products comprise a portfolio of company-owned lifestyle brands, as well as company-owned and licensed brands of tailored clothing and golf apparel. Its owned and licensed brands include Tommy Bahama, Lilly Pulitzer, Ben Sherman, Billy London, Oxford Golf, Nickelson, and Arnold Brant. The company also holds licenses to produce and sell various categories of apparel products under the Kenneth Cole, Dockers, and Geoffrey Beene brand names. Its primary product line includes the Tommy Bahama brand men's and women's sportswear and related products for affluent men and women with age of 35 and older; the Lilly Pulitzer brand women's and girl's dresses, sportswear, and other products for young women, young mothers and their daughters, and women; the Ben Sherman brand men's sportswear and related products for men ages 25 to 40; and branded and private label men's suits, sport coats, suit separates, and dress slacks. In addition, the company licenses its Tommy Bahama, Lilly Pulitzer, and Ben Sherman brand names for various products categories, including apparel, accessories, footwear, watches, jewelry, luggage, rugs, wall coverings, fragrances and toiletries, shampoos and soaps, gift products, furniture, ceiling fans, stationery, bedding and home fashions, and table top accessories. Further, it operates restaurants under the Tommy Bahama brand name. It distributes company-owned lifestyle branded products through department stores, specialty stores, company-owned and licensed retail stores, and its e-commerce Websites; and branded and private label tailored clothing products through department stores, specialty stores, national chains, specialty catalogs, mass merchants, and Internet retailers. Oxford Industries, Inc. was founded in 1942 and is based in Atlanta, Georgia.

Top Consumer Stocks To Invest In Right Now: S&W Seed Company(SANW)

S&W Seed Company engages in contracting the production of alfalfa seed varieties, processing the seeds, and marketing the certified seed to agribusiness firms and farmers worldwide. It also involves in the production of stevia leaf. The company primarily offers high fall dormancy (FD) alfalfa seed varieties, as well as markets and sells other varieties, including FD 7, 6, and 4 varieties. It sells the seed primarily to dealers and distributors who, in turn, sell primarily to hay and dairy farmers who grow hay for dairy cattle and other livestock; and through brokers. The company was founded in 1980 and is headquartered in Five Points, California.

Advisors' Opinion:
  • [By Peter Leeds]

    A growing population, seven billion, and an increasingly sophisticated diet among China and other developing nations have created rapidly increasing global food demand.  According to Food and Agriculture Organization (FAO) data, China’s per capita intake of calories, protein, and fat were well below the world average in 1975, but are now well above the world average.  Expect this trend to accelerate in China, as well as India, Pakistan, Indonesia, and other developing nations. 

    The problem is that there's not even close to enough food, while challenging growing environments routinely wipe out crops.

    That's where S&W Seed (SANW) comes in.  They breed and develop proprietary alfalfa seed varieties that grow in harsh climates.  Global demand for SANW's products just keeps soaring higher.  We're expecting their financial strength and solid operational position to translate into further gains in its share price this year.   The Peter Leeds price outlook:  $8.75.

Top 5 Warren Buffett Stocks For 2014: Omega Protein Corporation(OME)

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

Top Consumer Stocks To Invest In Right Now: Rocky Brands Inc.(RCKY)

Rocky Brands, Inc., together with its subsidiaries, designs, manufactures, and markets footwear and apparel under the Rocky, Georgia Boot, Durango, Lehigh, Mossy Oak, and Michelin brand names. It offers footwear, apparel, and accessory items to hunting, fishing, camping, or hiking enthusiasts; footwear and apparel to industrial and construction workers, and workers in the hospitality industry, such as restaurants or hotels; footwear products to law enforcement, security personnel, and postal employees; and footwear products to military personnel, farmers, and ranchers. The company distributes its products through a range of distribution channels comprising sporting goods stores, outdoor retailers, independent shoe retailers, hardware stores, catalogs, mass merchants, uniform stores, farm store chains, specialty safety stores, and other specialty retailers in the United States and Canada. It also sells its products directly to consumers through its consumer and business Web sites; Lehigh Outfitters mobile and retail stores; and Rocky outlet store. In addition, the company sells footwear under the Rocky label to the U.S. military. Rocky Brands, Inc. was founded in 1932 and is headquartered in Nelsonville, Ohio.

Top Consumer Stocks To Invest In Right Now: Key Technology Inc.(KTEC)

Key Technology, Inc., together with its subsidiaries, designs, manufactures, and sells process automation systems in the United States and internationally. The company offers automated inspection systems, including Manta, an on-belt sorter; Tegra that inspects products in-air using cameras configured in a tilted-X geometry to look in oblique angles; Optyx; Tobacco Sorters 3 tobacco sorting systems for use in tobacco threshing and processing; ADR automatic defect removal systems for the potato strip industry; and Optyx SG and VeriSym for the pharmaceutical and nutraceutical industries, as well as provides various line solutions. It also offers conveying and process systems to move and process product within a production plant. The company?s conveying and process systems comprise Iso-Flo vibratory conveying systems; Impulse, a vibratory conveyor; SmartArm, a wireless performance monitoring system for Iso-Flo vibratory conveyors; horizontal motion conveyors; rotary sizing an d grading systems for food processing and fresh vegetable packing operations; preparation systems to prepare a range of food products prior to cooking, freezing, canning, or other types of processing; fresh-cut systems for the fresh-cut produce industry; and SYMETIX equipment for pharmaceuticals and nutraceuticals. In addition, it provides standard and custom designed equipment that conveys, dewaters, transfers, distributes, aligns, feeds, meters, separates, grades, blanches, cooks, pasteurizes, cools, cleans, washes, dries, polishes, and packages products. Further, the company offers spare parts, and post-sale field and telephone-based repair services; and RemoteMD, a condition analysis tool for G6 optical sorters and G6 ADR automatic defect removal systems, as well as provides online training programs. It sells its products directly, as well as through independent sales representatives. The company was founded in 1948 and is headquartered in Walla Walla, Washington.

Top Consumer Stocks To Invest In Right Now: Smithfield Foods Inc.(SFD)

Smithfield Foods, Inc., together with its subsidiaries, engages in the production and marketing of fresh meat and packaged meats products in the United States and internationally. The company involves in the production of hog; and produces various fresh pork, beef, poultry, and packaged meats products. It sells fresh pork to retail customers as unprocessed and trimmed cuts, such as butts, loins, picnics, and ribs; packaged meats products, including smoked and boiled hams, bacon, sausage, hot dogs, and deli and luncheon meats; specialty products, such as pepperoni and dry meat products; and ready-to-eat prepared foods comprising pre-cooked entrees, and pre-cooked bacon and sausages. The company offers its products to supermarket chains; wholesale distributors; the foodservice industry, including fast food, restaurant and hotel chains, hospitals, and other institutional customers; export markets; and other further processors. It sells its products through its salespersons an d independent commission brokers. Smithfield Foods, Inc. was founded in 1961 and is headquartered in Smithfield, Virginia.