Saturday, June 29, 2013

Top International Companies To Buy Right Now

Margins matter. The more Robert Half International (NYSE: RHI  ) keeps of each buck it earns in revenue, the more money it has to invest in growth, fund new strategic plans, or (gasp!) distribute to shareholders. Healthy margins often separate pretenders from the best stocks in the market. That's why we check up on margins at least once a quarter in this series. I'm looking for the absolute numbers, so I can compare them to current and potential competitors, and any trend that may tell me how strong Robert Half International's competitive position could be.

Here's the current margin snapshot for Robert Half International over the trailing 12 months: Gross margin is 40.1%, while operating margin is 8.8% and net margin is 5.1%.

Unfortunately, a look at the most recent numbers doesn't tell us much about where Robert Half International has been, or where it's going. A company with rising gross and operating margins often fuels its growth by increasing demand for its products. If it sells more units while keeping costs in check, its profitability increases. Conversely, a company with gross margins that inch downward over time is often losing out to competition, and possibly engaging in a race to the bottom on prices. If it can't make up for this problem by cutting costs -- and most companies can't -- then both the business and its shares face a decidedly bleak outlook.

Top International Companies To Buy Right Now: CSP Inc.(CSPI)

CSP Inc. engages in the development and marketing of information technology (IT) integration solutions and high-performance cluster computer systems to industrial, commercial, and defense customers worldwide. The company operates in two segments: Systems, and Service and System Integration. The Systems segment designs and manufactures specialty, high-performance computer signal processing systems for the aerospace and defense markets. These systems are used on land, and in airborne and shipboard platforms for high-speed digital signal processing in radar, sonar, and surveillance applications. The Service and System Integration segment consists of the computer maintenance and integration services, and third-party computer hardware and software value added reseller businesses. It also provides professional IT consulting services, including maintenance and technical support; implementation, integration, configuration, and installation services; enterprise security intrusion p revention, network access control, and unified threat management services; IT security compliance services; custom software applications and solutions development and support; and monitoring, reporting, and management of alerts for the resolution and preventive general IT and IT security support tasks. This segment offers its solutions and services for IT environments, including storage and servers, unified communications solutions, IT security solutions, and consulting services. The company markets its products and services through direct sales force, distributors, and resellers. CSP Inc. was founded in 1968 and is headquartered in Billerica, Massachusetts.

Top International Companies To Buy Right Now: Whitbread Holdings(WTB.L)

Whitbread PLC operates hotels, restaurants, and coffee shops in the United Kingdom and internationally. It owns and operates 590 hotels with approximately 43,219 rooms in the United Kingdom and 5 hotels with approximately 1,076 rooms internationally under the Premier Inn brand name; and 379 restaurants under the Beefeater Grill, Table Table, Brewers Fayre, and Taybarns brand names, as well as operates 1,217 coffee shops in the United Kingdom and 654 coffee shops internationally under the Costa Coffee brand name. The company also operates roasters and facing espresso based coffee vending machines; and involves in wholesale of coffee beans. Whitbread PLC was founded in 1742 and is based in Dunstable, the United Kingdom.

Hot Low Price Companies To Own For 2014: Strike Resources Ltd(SRK.AX)

Strike Resources Ltd. engages in the exploration and evaluation of iron ore projects in Peru. The company primarily holds a 56% interests in Apurimac Iron Ore project that comprises 72 concessions covering approximately 59,000 hectares located in the Apurimac district, Peru; and a 56% interests in Cusco Iron Ore project, which consists of approximately 22 concessions covering approximately 18,000 hectares located in Cusco district, Peru. It also owns a 100% interests in Berau Thermal Coal project that comprises 5,000 hectares in East Kalimantan, Indonesia. The company was formerly known as Fast Scout Limited and changed its name to Strike Resources Ltd. in January 2006. Strike Resources Ltd. is headquartered in Perth, Australia.

Top International Companies To Buy Right Now: Diageo(DGE.L)

Diageo plc engages in producing, distilling, brewing, bottling, packaging, distributing, developing, and marketing spirits, beer, and wine products worldwide. It offers a range of brands, including Johnnie Walker scotch whiskies, Smirnoff vodka and Smirnoff ready to drink products, Baileys Original Irish Cream liqueur, Crown Royal Canadian whisky, Captain Morgan rum and rum based products, Jose Cuervo tequila, JeB scotch whisky, Buchanan?s scotch whisky, Windsor Premier scotch whisky, Ketel One vodka, Ciroc vodka, Tanqueray gin, Bushmills Irish whiskey, and Guinness stout. The company also provides other spirits brands that comprise Gordon?s gin and vodka, Old Parr scotch whisky, Bell?s scotch whisky, The Classic Malts scotch whiskies, Seagram?s 7 Crown whiskey and Seagram?s VO whisky, Cacique rum, White Horse scotch whisky, Don Julio tequila, and Bundaberg rum. In addition, it offers beer under various brands, such as Malta Guinness non-alcoholic malt, Harp lager, Tu sker lager, Smithwick?s ale, Senator lager, and Red Stripe lager; and wine under a range of brands, including Blossom Hill, Sterling Vineyards, Beaulieu Vineyard, Navarro Correas, Acacia Vineyard, Rosenblum Cellars, Piat d?Or, Chalone Vineyard, and Santa Rita. Further, Diageo plc owns the distribution rights for the Jose Cuervo tequila brands in North America and internationally. The company was founded in 1886 and is based in London, the United Kingdom.

Top International Companies To Buy Right Now: LSB Financial Corp.(LSBI)

LSB Financial Corp. operates as the holding company for Lafayette Savings Bank, FSB that provides a range of banking and financial services to individual and corporate customers primarily in Indiana. Its deposit products include statement savings accounts, money market accounts, NOW accounts, and certificate accounts. Its loan products portfolio comprises mortgage loans for the purpose of purchasing, constructing, or refinancing owner-occupied one-to four-family residential real estate; non-owner occupied one-to four-family residential, multi-family and land development, and commercial real estate loans; commercial business loans consisting of secured and unsecured lines of credit and loans secured by small business equipment and vehicles; and consumer loans, including home equity, direct automobile, home improvement, deposit account, and other secured/unsecured loans for household and personal purposes. It serves customers in the Tippecanoe County and its surrounding coun ties through five retail banking offices. The company was founded in 1869 and is based in Lafayette, Indiana.

Top International Companies To Buy Right Now: Polaris Industries Inc. (PII)

Polaris Industries Inc. designs, engineers, and manufactures off-road vehicles. It offers all terrain vehicles and side-by-side vehicles for recreational and utility use; snowmobiles; and on-road vehicles, including motorcycles and low emission vehicles. The company also provides replacement parts and accessories, including winches, bumper/brushguards, plows, racks, mowers, tires, pull-behinds, cabs, cargo box accessories, tracks, and oil for off-road vehicles; covers, traction products, reverse kits, electric starters, tracks, bags, windshields, oil, and lubricants for snowmobiles; and saddle bags, handlebars, backrests, exhaust, windshields, seats, oil, and various chrome accessories for motorcycles. Polaris Industries sells its products through dealers and distributors primarily under the RANGER, RANGER RZR, RANGER Crew, Victory Vision, Victory Cross Roads, Polaris RUSH, and Cross Country trade marks. In addition, it markets helmets, jackets, bibs and pants, leathers, a nd hats through dealers and distributors, as well as online under the Polaris brand name. The company principally operates in the United States and Canada. Polaris Industries Inc. was founded in 1987 and is headquartered in Medina, Minnesota.

Friday, June 28, 2013

Apple's Latest Court Woes: E-Books

In a court case that is unusual for Apple (NASDAQ: AAPL  ) in that it neither involves patents nor Samsung, a U.S. District Judge in New York will soon decide if there is sufficient evidence to conclude that the iPad maker colluded with book publishers to change e-book prices and force Amazon to use an agency pricing model. While the government is not seeking financial damages, the case has significant value as a precedent, and could open the floodgates for further suits. The five publishers involved in the case have already settled.

In the video below, Fool.com contributor Doug Ehrman discusses some of the specifics of the case, and why its outcome could matter to investors.

Apple has a history of cranking out revolutionary products... and then creatively destroying them with something better. Read about the future of Apple in the free report, "Apple Will Destroy Its Greatest Product." Can Apple really disrupt its own iPhones and iPads? Find out by clicking here.

The Hard Numbers on Gold Stocks

In the last 18 months, $17 billion went to money heaven.
 
That's how much money gold miners "wrote off." In other words, these companies paid too much for assets... They're just now being forced to admit it.
 
It's like superinvestor Warren Buffett once said: "It's only when the tide goes out that you learn who's been swimming naked."
 
The "tide" in gold prices is out. It's fallen from $1,900 per ounce to less than $1,300. So that $17 billion was just the beginning... Gold producers spent $195 billion on acquisitions over the last decade. And some of the world's biggest gold miners are in trouble.
 
From 2001 to 2011, gold prices went almost straight up from less than $300 an ounce to $1,900. Endlessly increasing prices meant there was no accountability. Overspend on a project by a billion dollars? No problem... The price of gold just rose by another $100 per ounce. That makes the project worth another $2 billion!
 
Now the party is over. The price of gold is down 32% from its high. But the costs to mine gold – oil, equipment, labor, etc. – haven't fallen. Projects that looked great when gold was over $1,800 per ounce are worth a whole lot less today.
 
Here's a quick table that shows some of the big gold miners' profit margins in 2012, when gold was going for an average $1,650 an ounce. Compare that to what they're going to earn with gold at today's price (about $1,275).
 
Gold Stock Operating Margins
Company
In 2012 
At Current Gold Price
Fall In Profit Margin
Newmont
26%
3%
-86%
Goldcorp
52%
38%
-28%
Barrick Gold
44%
27%
-39%
Kinross Gold
30%
11%
-65%
Newcrest
48%
35%
-27%
Data from Bloomberg.
 
As you can see, these companies are set to see their profits plummet. And plummeting profits lead to plummeting share prices.
 
For an extreme example, look at Australia's largest gold miner, the $6.8 billion Newcrest Mining. Newcrest had six producing operations, three of which are not profitable at the current gold price. And earlier this month, the company announced that it would write off $5.75 billion.
 
Newcrest's write-down is one of the largest in the history of the industry. Since the start of the month, shares are down more than 40%.
 
I expect more of these announcements in 2013...
 
If you take another look at the table, you'll see Denver-based Newmont is particularly vulnerable. We could see the company announce some mine closures before too long.
 
Newmont and its peers will try to cut costs first. They will slash exploration and development budgets. They will announce layoffs... Giant gold miner Barrick Gold already announced it will lay off 33% of its corporate staff (100 employees) in addition to the 100-some workers it laid off earlier this month.
 
But cutting costs won't be enough. Projects are going to be dumped. Assets will be written off. Gold miners' books are loaded with assets that no longer have any value. And the tide is out.
 
Good investing,
 
Matt Badiali


Thursday, June 27, 2013

Top 10 Shipping Companies To Own In Right Now

This series, brought to you by Yahoo! Finance, looks at which upgrades and downgrades make sense, and which ones investors should act on. Today, three new ratings in the shipping sphere are grabbing headlines, as investment banker RBC Capital Markets upgrades UPS (NYSE: UPS  ) to outperform, but cuts both FedEx (NYSE: FDX  ) and shipping facilitator Expeditors International (NASDAQ: EXPD  ) to underperform.

Buy UPS
RBC's outperform call on UPS is essentially a buy rating, as this analyst sees the $82 stock heading to $100 over the course of the next 12 months. And RBC could be right about that.

After all, if it's true that UPS shares cost 99 times earnings, recently hit their 52-week high, and could theoretically be expected to slump back a bit, it's also true that relative to the rest of the stock market, UPS has been a pretty weak performer of late. The shares are only up 3% over the past 12 months, versus a 12% gain on the Dow. Now could be the time for UPS to begin catching up.

Top 10 Shipping Companies To Own In Right Now: Marin Software Inc (MRIN.N)

Marin Software Incorporated, incorporated on March 16, 2006, provides cloud-based digital advertising management platform to advertisers and agencies. The Company�� Revenue Acquisition Management platform is a software-as-a-service (SaaS), analytics, workflow, and optimization solution for marketing professionals, enabling them to manage their digital advertising spend across search, display, social and mobile advertising channels. Its platform integrates with publishers, such as Baidu, Bing, Facebook, Google, Yahoo! and Yahoo! Japan, as well as Web analytics and ad-serving solutions, and key enterprise applications to enable marketers to measure the return on investment of their marketing programs.

The Company�� software platform serves as a system-of-record for advertising performance, revenue and conversion data and allows advertisers to correlate advertising spend to subsequent revenue outcomes or business events. It enables its customers to simulta neously run large-scale digital advertising campaigns across multiple publishers and channels, making it easy for marketers to create, publish, modify and optimize campaigns in real time.

Top 10 Shipping Companies To Own In Right Now: Pacific American Income Shares Inc.(PAI)

Western Asset Income Fund is a close ended fixed income mutual fund launched and managed by Legg Mason Partners Fund Advisor, LLC. It is co-managed by Western Asset Management Company. It invests in the fixed income markets of the United States. The fund benchmarks the performance of its portfolio against the Lehman High Yield Index and Lehman US Credit Index. Western Asset Income Fund was formed on March 22, 1973 and is domiciled in the United States.

Top Value Companies To Buy For 2014: The York Water Company(YORW)

The York Water Company engages in impounding, purifying, and distributing drinking water in Pennsylvania. It has two reservoirs, Lake Williams and Lake Redman, which together holds up to approximately 2.2 billion gallons of water. The company also has a 15-mile pipeline from the Susquehanna River to Lake Redman that provides access to an additional supply of 12.0 million gallons of water per day. As of December 31, 2010, it served 182,000 residential, commercial, industrial, and other customers in 39 municipalities in York County and 7 municipalities in Adams County. The company was founded in 1816 and is based in York, Pennsylvania.

Top 10 Shipping Companies To Own In Right Now: Mercer International Inc.(MERC)

Mercer International Inc., together with its subsidiaries, manufactures and sells pulp produced from wood chips and pulp logs. The company offers northern bleached softwood kraft (NBSK) pulp and market pulp. Mercer International sells its products primarily in Europe, Asia, and North America. The company was founded in 1968 and is based in Vancouver, Canada.

Top 10 Shipping Companies To Own In Right Now: Q Investments Ltd.(QI.V)

Q Investments, Ltd. is a venture capital firm specializing in investments in early stage. It focuses its investments in energy sector, specially oil and gas. The firm primarily invests in equity and debt. In equity, it invests in share purchase warrants. Q Investments, Ltd. is headquartered in Hamilton, Bermuda with an additional office in London.

Top 10 Shipping Companies To Own In Right Now: Cheviot Financial Corp(CHEV)

Cheviot Financial Corp. operates as the holding company for Cheviot Savings Bank that provides a range of banking services in Ohio. It offers various deposit products, including passbook and statement savings accounts, interest-bearing demand accounts, non-interest-bearing demand accounts, NOW accounts, money market accounts, and certificates of deposit. The company also originates one- to four-family residential real estate loans, multi-family residential real estate loans, residential mortgage loans, construction loans, commercial real estate loans, business lines of credit, and consumer loans. As of April 23, 2010, Cheviot Financial Corp. operated six full-service offices in Hamilton County, Ohio. It also has operations in southeastern Indiana and northern Kentucky. The company was founded in 1911 and is based in Cheviot, Ohio. Cheviot Financial Corp. is a subsidiary of Cheviot Mutual Holding Company.

Top 10 Shipping Companies To Own In Right Now: Savient Pharmaceuticals Inc(SVNT)

Savient Pharmaceuticals, Inc., a specialty biopharmaceutical company, focuses on developing KRYSTEXXA, a biologic PEGylated uricase in the United States. The KRYSTEXXA is being developed as a treatment for chronic gout in patients refractory to conventional therapy. The company also sells and distributes branded and generic versions of oxandrolone, a drug used to promote weight gain following involuntary weight loss. It sells its products directly to drug wholesalers. The company, formerly known as Bio-Technology General Corp. and changed its name to Savient Pharmaceuticals, Inc. in June 2003. Savient Pharmaceuticals, Inc. was founded in 1980 and is headquartered in East Brunswick, New Jersey.

Top 10 Shipping Companies To Own In Right Now: Lululemon Athletic Com Stk Usd0 (LLL.TO)

lululemon athletica inc., together with its subsidiaries, designs, manufactures, and distributes athletic apparel for women, men, and female youth. The company�s line of apparel and accessories include fitness pants, shorts, tops, and jackets for healthy lifestyle activities, such as yoga, running, and general fitness. Its fitness-related accessories comprise bags, socks, underwear, yoga mats, instructional yoga DVDs, and water bottles. The company sells its products through a chain of corporate-owned and franchise stores; direct to consumer through e-commerce; and a network of wholesale channel, such as yoga studios, health clubs, and fitness centers. As of January 29, 2012, it had 47 stores in Canada, 108 stores in the United States, 18 stores in Australia, and 1 store in New Zealand under the lululemon athletica and ivivva athletica brand names. lululemon athletica inc. was founded in 1998 and is based in Vancouver, Canada.

Top 10 Shipping Companies To Own In Right Now: Breadtalk Group Limited (5DA.SI)

BreadTalk Group Limited, an investment holding company, engages in manufacturing, retailing, and franchising various food, bakery, and confectionary products. The company is involved in baking, manufacturing, and dealing in bread, flour, and biscuits; and managing and operating food courts, and operating food and drinks outlets within the food courts. It also operates food and drinks outlets, eating houses, and restaurants. As of December 31, 2011, the company operated 471 owned and franchised bakery outlets, 37 food courts, and 26 restaurants under the BreadTalk, Bread Society, Food Republic, Toast Box, RamenPlay, Din Tai Fung, The Icing Room, and Carl's Jr. brand names. It has operations in the People�s Republic of China, Singapore, Indonesia, the Philippines, Malaysia, Hong Kong, India, Jordan, Kuwait, Thailand, Korea, Bahrain, Oman, Vietnam, and Taiwan. The company was founded in 2000 and is based in Singapore.

Top 10 Shipping Companies To Own In Right Now: Axmin Inc. (AXM.V)

AXMIN Inc. engages in the exploration and development of mineral properties primarily in central and west Africa. It primarily explores for gold, copper, nickel, and cobalt ores. The company�s principal asset includes the Passendro gold project comprising 2 exploration licenses covering approximately 1,240 square kilometers located in the northwest trending Archaean Bambari-Bandas granite-greenstone belt. It also holds interests in exploration projects located in the Central African Republic, Mozambique, and Senegal. AXMIN Inc. is headquartered in Toronto, Canada.

Wednesday, June 26, 2013

Men's Clothing Makers Get a Dressing-Down

Coming as it does on the heels of the ouster of Men's Wearhouse (NYSE: MW  ) founder and company spokesman George Zimmer, the rejection by Jos. A. Bank (NASDAQ: JOSB  ) shareholders of its CEO's pay package represents a serious dressing-down of men's clothiers.

Zimmer says that he was canned because he expressed concern for the direction the company was heading in, and that booting him was a means of silencing those worries. Considering that the company's stock has bounced back 40% from its recent lows, it was an odd move by the board to say the least, though the calendar pushing Easter up helped the quarter. Its underperforming K&G stores still serve as a drag on performance.

In the case of Jos. A. Bank, its stock sits some 22% below its 52-week high, and the shares are down almost 4% for the year. In comparison, the S&P 500 is almost 20% higher than at this time last year, albeit driven there by the Fed pumping tens of billions of dollars into the economy every day. Still, sagging sales and profits have weighed on the clothier, with revenues down 2.6% last quarter as comps dropped 8.5% and profits plunged 45%.

In what's been described as a contentious shareholder meeting, investors rejected the compensation package of CEO R. Neal Black and other top executives in a nonbinding referendum that its board is not required to follow, but whose sentiments it would do well to heed. It was a unique vote for several reasons, not least of which was that investors typically do approve of executive pay, but also because the $2.9 million package that had been proposed was 27% less than the previous year's $4 million plan. 

There are some other concerns that affected the vote. Black says it has more to do with a change of control plan proposal than his handling of the company, but institutional investors want more stock buybacks to prop up the stock and believe its advertising campaign has gotten tired. While management might agree with the latter, they see buybacks as too short-term -- which I'd agree with -- and they prefer to use the $320 million they have in cash and short-term investments to expand the business.

Although the economy is still bleak, there are larger forces at work there that bode well for the future of both clothing retailers. While unemployment rose to 7.6% last week from 7.5%, the Bureau of Labor Statistics says it's because more people have decided they can actually find work and began looking for a job. The labor participation rate finally ticked upward to 63.4%, up 10 basis points, and while this is certainly nothing to break out the champagne over, as it's still abysmally low, it's at least finally moving in the right direction again.

The protracted recession has affected just how many new suits are needed, so with the Fed now forecasting unemployment to fall as low as 6.5% by the end of next year -- wishful thinking, if you ask me -- it could improve the chances of Men's Wearhouse and Jos. A. Bank looking more nattily attired.

But from the boardroom to the shareholder floor, restiveness is apparent, and both companies indicate a willingness to dress down their top executives who appear unwilling to dress for success. Investors just might want to hang up these dull suits until they mend their ways.

The retail space is in the midst of the biggest paradigm shift since mail order took off at the turn of last century. Only those most forward-looking and capable companies will survive, and they'll handsomely reward those investors who understand the landscape. You can read about the 3 Companies Ready to Rule Retail in The Motley Fool's special report. Uncovering these top picks is free today; just click here to read more.

Tuesday, June 25, 2013

CSG Systems Starts Paying a Dividend

Telecom industry services provider CSG Systems (NASDAQ: CSGS  ) announced today that it would initiate the payment of a quarterly dividend to investors, marking the first time in company history it has done so.

The board of directors said the quarterly dividend of $0.15 per share is payable on July 25 to the holders of record at the close of business on July 10. Going forward, it expects to pay dividends each year in September, December, March, and June. 

CSG Systems President and CEO Peter Kalan said: "Since our inception, we have demonstrated that we can grow revenues at or above the market, make important investments to help us get broader and deeper in our clients' operations, and generate strong, predictable cash flows. These characteristics have provided us with a strong balance sheet and the flexibility to continue to invest in our business while at the same time, return capital to our shareholders."

The regular dividend payment equates to a $0.60-per-share annual dividend, yielding 2.8% based on the closing price of CSG Systems' stock on June 24.

link

Monday, June 24, 2013

A Deeper Look at BreitBurn's Big Oil Deal

With one stroke of the pen BreitBurn Energy Partners (NASDAQ: BBEP  ) accomplished its acquisition goal for 2013. In fact, the company blew away its $500 million target by signing a nearly $900 million deal with Whiting Petroleum (NYSE: WLL  )  and its partners for oil properties in the Oklahoma Panhandle. Let's take a closer look at what this deal means for BreitBurn's unit holders.

Deal details
BreitBurn is acquiring Whiting's interest in the Postle and North East Hardesty oil fields in Oklahoma for about $860 million. It's also consolidating additional interests in these properties from other sellers for another $30.2 million. Finally, BreitBurn is acquiring associated midstream assets which include the Dry Trail plant processing facilities, an oil delivery pipeline and Whiting's 60% interest in the 120-mile Transpetco-operated CO2 transportation pipeline. 

One thing investors need to key in on is that BreitBurn put the entire deal on its corporate credit card instead of issuing equity. The company had a lot of financial flexibility as it had just $230 million drawn on its $1.2 billion credit facility. To get the deal done, BreitBurn was able to get its banks to increase its borrowing base to $1.5 billion in order to give it a little more breathing room. Further, its banks were able to relax the total leverage ratio for the next five quarters to give BreitBurn time to digest the acquisition. While the deal adds to its leverage in the near term, I wouldn't be surprised to see equity rise at some point, once the price of its units bounce back a bit, to pay down the credit facility.

As far as the assets acquired, the carbon dioxide assets are very strategically important because they save the company from relying on third parties. In addition to that, they strengthen Breitburn's technical and intellectual know-how when it comes to enhanced oil recovery, or EOR. 

We are seeing more oil and gas MLPs acquire EOR assets because these assets, once developed, fit well within an MLP structure. Just last year, LINN Energy (NASDAQ: LINE  ) entered into a joint venture with Anadarko (NYSE: APC  ) on its Salt Creek field in Wyoming. In that deal LINN was able to partner with a top-tier operator in an effort to gain from Anadarko's experience in carbon dioxide flooding. LINN saw the deal as a way to access this technology so that it could potentially transfer it to the company's existing base of assets. That deal was a great fit because LINN picked up technical know-how and oil production while Anadarko was able to secure additional capital to develop the asset. The great thing about EOR projects is that these assets feature well-developed production that comes with very low decline rates which is why they are such a perfect fit for an MLP.  

Huge plunge into liquids
The other important appeal to BreitBurn when it comes to these assets are the liquid contents, because 98% of the production is high-margin oil and natural gas liquids. This will push the company's production mix to 63% liquids, up from just 49% earlier in the year. The deal will also boost the company's production by 7,400 barrels of oil equivalent per day.

Overall, BreitBurn is acquiring 35 million barrels of oil equivalent reserves which have an estimated reserve life of about 13 years. Further, these very low decline assets help to offset some of the company's more development-focused assets acquired over the past year. As I mentioned, these assets will fit much better in BreitBurn's MLP structure than in Whiting's development-focused business model. Whiting already has plans to use the cash from the sale to help fund its development opportunities in the Rockies and the Permian Basin.

Distribution
One of the keys to this deal is that it immediately boosts BreitBurn's distributable cash flow per unit. The company had a rough first quarter; its distribution coverage ratio fell to just 0.67 times. That was well below its stated goal of 1.1-1.2 times. While no distribution increase was announced with this deal, the company did say that it supports the goal to target annual distribution increases of about 5% per year. BreitBurn has raised its distribution for 12 consecutive quarters now, so this transaction virtually assures that that trend will continue with the next distribution announcement.

Final Foolish thoughts
The transaction appears to be a solid one for BreitBurn. It has all the characteristics one likes to see -- these are high-margin, low-decline assets with a long reserve life. The deal also helps stabilize the distributable cash flow, which is why with a yield of over 11%, BrietBurn is a very compelling opportunity for income-seeking investors.

Rising interest rate have been putting pressure on MLPs this year which is making companies like BreitBurn look like terrific bargains. However, there are many different ways to play the energy sector, and The Motley Fool's analysts have uncovered an under-the-radar company that's dominating its industry. This company is a leading provider of equipment and components used in drilling and production operations, and poised to profit in a big way from it. To get the name and detailed analysis of this company that will prosper for years to come, check out the special free report: "The Only Energy Stock You'll Ever Need." Don't miss out on this limited-time offer and your opportunity to discover this under-the-radar company before the market does. Click here to access your report -- it's totally free.

Sunday, June 23, 2013

Hot Sliver Stocks To Watch Right Now

As an investor you're likely keenly aware of the fact that plunking down your hard-earned money for a sliver of ownership in a company involves risk. The amount you're investing for your share of the company could decrease in value significantly, and a worst case scenario could lead to your investment becoming worthless. That's why it's so important to consider what could go wrong ahead of time so you have an idea of what to watch out for as you hold your position.

That's why I love the quote by Carl Richards in which he reminds us that "[risk] is what's left over when you think you've thought of everything else." All too often we only look at what could go right and typically don't dig too deeply into what could go wrong. Instead of being reminded that the real risk is something we are not considering, all too often we are blindsided by a risk that was hiding in plain sight.

Hot Sliver Stocks To Watch Right Now: Mountainview Energy Ltd. (MVW.V)

Mountainview Energy, Ltd. engages in the acquisition, exploration, development, and production of petroleum and natural gas reserves in Montana and North Dakota regions of the United States. It holds interests in projects located in the Williston Basin Bakken/Three Forks play and the south Alberta Bakken play. The company was incorporated in 2000 and is headquartered in Cut Bank, Montana.

Hot Sliver Stocks To Watch Right Now: CoreSite Realty Corporation(COR)

CoreSite Realty Corporation operates as real investment trust in the United States. The company engages in the ownership, acquisition, construction, and management of data centers. It provides data centers that optimize, secure, and interconnect the mission-critical IT assets of the organizations. The company offers private data centers and suites, cage-to-cabinet colocation, and interconnection services, such as Any2, CoreSite's Internet exchange. Its data centers are located in Los Angeles, the San Francisco Bay and Northern Virginia areas, Chicago, and New York City. The company provides its data centre services to enterprises, cloud providers, financial firms, and Government agencies. As of March 31, 2011, its property portfolio included 11 operating data center facilities, 1 data center under construction, and 1 development site. The company was founded in 2010 and is headquartered in Denver, Colorado.

Advisors' Opinion:
  • [By Bryan Perry]

    CoreSite Realty Corp. (NYSE: COR) is structured as a REIT and is an owner, developer and operator of tactically positioned real estate, intended to meet the strict needs of the information technology community. It is one of the world’s biggest carrier-neutral suppliers of wholesale data center and co-location services, offering private data centers and suites, cage-to-cabinet co-location and interconnection opportunities.

    COR went public in the fall of 2010. Since the company is structured as a REIT, it must pay out at least 90% of net income to shareholders who, in turn, must pay ordinary income taxes on dividend income unless the shares are held in a retirement account.

    The two Wall Street analysts that cover the stock have the company earning a consensus 98 cents for 2011. That’s a 24% year-over-year growth rate in an economy forecast to grow by 2%. As such, if the company is set to pay out 90% of earnings, then we should see a forward dividend yield of around 6% for 2011, assuming earnings per share of roughly $1. COR currently yields 3.57%. Buy it up to $16.

Top Tech Stocks To Invest In 2014: Cir-comp(CIRX.MI)

CIR S.p.A., through its subsidiaries, engages in the utilities, media, automotive components, healthcare, and financial services businesses. In the utilities sector, the company engages in the sourcing, marketing, and supply of electricity and natural gas. It operates wind, photovoltaic, hydro, thermo, and biomass power generation plants with an installed capacity of approximately 4,000 megawatts. In the media sector, the company is involved in publishing la Repuibblica national daily newspaper, 17 local dailies, 1 three-weekly paper, L'Espresso weekly magazine, 2 monthlies, 2 quarterlies, and various guide books; providing Internet and applications for mobile and new generation devices; broadcasting 3 national radio stations comprising Radio Deejay, Radio Capital, and Radio M2O; and operating the national TV channel Deejay TV, as well as the satellite channels MyDeejay and Onda Latina. In the automotive components sector, the company offers filtration systems, such as oil , engine air, petrol fuel, diesel fuel, and cabin air filters; and flexible suspension components, including coil springs for shock absorbers, stabilizer and torsion bars, stabilinks, leaf springs, precision springs, and track adjusters. In the healthcare sector, it operates nursing homes under the Anni Azzurri brand; psychiatric rehabilitation units under the Santo Stefano and Redancia brands; and hospital facilities under the Medipass brand. The company manages 60 facilities with a total of approximately 5,600 beds in central and northern Italy. In the financial sector, it engages in the acquisition and management of non-performing loans; venture capital, private equity, and hedge funds business; operation of restaurants; and provision of hospitality management training. The company has operations in Italy, other European countries, North America, South America, and Asia. CIR S.p.A. was founded in 1976 and is headquartered in Milan, Italy.

Hot Sliver Stocks To Watch Right Now: Cogo Group Inc.(COGO)

Cogo Group, Inc., through its subsidiaries, provides customized module design solutions, focusing on the digital media, telecommunications equipment, and industrial business end-markets in China. In the digital media end-market, the company provides mobile handset and module solutions for functionalities, such as CMMB mobile TV, motion sensor, camera, power supply, and Bluetooth, as well as solutions for high definition digital set-top box, GPS, and solutions for Tablet. In the telecommunications equipment end-market, it offers solutions for public switched telephone network, switching, optical transmitters, electrical signal processing, and optical signal amplification. In the industrial business end-market, the company provides industrial solutions for the smart meter, smart grid, railway, and auto-electronics sectors. In addition, it offers technology and engineering services, network system integration, and related training and maintenance services. Cogo Group, Inc. se lls its customized module design solutions through its direct sales force. The company was formerly known as Comtech Group, Inc. and changed its name to Cogo Group, Inc. in May 2008. The company was founded in 1917 and is based in Shenzhen, China.

Saturday, June 22, 2013

Top Trucking Companies To Buy Right Now

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

What: Shares of Universal Truckload Services (NASDAQ: UACL  ) , a North American provider of trucking and logistics solutions, jumped as much as 12% after receiving an upgrade from BB&T�Capital Markets.

So what: According to BB&T Capital Markets, Universal Truckload's product offerings should broaden and its gross margins should improve following its $335 million purchase of privately held LINC Logistics, announced last year. BB&T upgraded Universal Trucking to a buy from a hold and set its price target at $33, implying 32% upside based on Friday's closing price.

Now what: As usual, the first thing you need to do is not allow the extremely short-term movements of analysts to cloud your long-term investing thesis. In the case of Universal Truckload, it's going to be a bumpy ride but management seems to have the steering wheel pointed in the right direction. The purchase of LINC adversely affected the company's bottom line because of a change in tax code last quarter and Universal could suffer as it sheds lower margin and unprofitable operations. However, I do see value in the LINC purchase and feel, after a moderate pullback, that this could be a name worth keeping an eye on in the trucking sector.

Top Trucking Companies To Buy Right Now: Rotork(ROR.L)

Rotork p.l.c. engages in the design, manufacture, and support of actuators, systems, and related products worldwide. It provides a range of products, systems, and services for the motorization and manual operation of adaption to industrial valves and dampers for isolation duty and process control applications. The company operates in four segments: Controls, Fluid Systems, Gears, and Instruments. The Controls segment designs, manufactures, and sells various electric valve actuators. The Fluid Systems segment is involved in the design, manufacture, and sale of pneumatic and hydraulic valve actuators. The Gears segment designs, manufactures, and sells gearboxes, adaption, and ancillaries for the valve industry. The Instruments segment offers high precision pneumatic controls and power transmissions for flow control, pressure control, flow measurement, and pressure measurement. The company also provides various services comprising field services, retrofit services, actuator o verhaul, preventative maintenance, shutdown outages, extended scope, spares parts, factory fit, technical support, and product training services. It serves oil and gas, power generation, water and sewage, and marine industries. The company is headquartered in Bath, the United Kingdom.

Top Trucking Companies To Buy Right Now: Westwood Holdings Group Inc(WHG)

Westwood Holdings Group, Inc. manages investment assets and provides services for its clients. It operates through two subsidiaries, Westwood Management Corp. and Westwood Trust. The Westwood Management Corp. provides investment advisory services to corporate retirement plans, public retirement plans, endowments and foundations, mutual funds, individuals, and clients of Westwood Trust. The Westwood Trust provides trust and custodial services to institutions and high net worth individuals, and participates in common trust funds that it sponsors. The company was founded in 1983 and is based in Dallas, Texas.

Best Financial Companies For 2014: United Reef Limited (URP.V)

New Klondike Exploration Ltd. engages in the acquisition, exploration, and development of mineral properties in Canada. The company holds an option to acquire interest in the Santa Maria gold project, which consists of 5 mining claims that include 11 claim units in the Kenora mining division, northwestern Ontario. It also has a 100% interest in the Nickel Offsets project that consists of 12 patented and 5 unpatented mining claims located in the Sudbury mining division, Ontario. The company was formerly known as Chromos Molecular Systems Inc. and changed its name to New Klondike Exploration Ltd. in August 2012. New Klondike Exploration Ltd. was founded in 1948 and is based in Toronto, Canada.

Top Trucking Companies To Buy Right Now: Extenway Solutions Inc. (EY.V)

Extenway Solutions Inc. provides media, connectivity, and communications solutions for the healthcare and hospitality industries primarily in Canada. It offers bedside infotainment terminal solutions that enhance the patient�s hospital experience by providing on demand access to entertainment, including digital TV, video-on-demand, music, Internet radio, Internet access, and video games, as well as educational content. The company also offers interactive TV and guest media solutions, which allow hospitality organizations to manage and coordinate all in-room guest interactions and communications, as well as deliver actionable guest insight for key service and marketing initiatives. In addition, it provides family video conferencing, patient education library, hospital information and administration, marketing, advertising media, integration, and maintenance solutions. The company was formerly known as Infomedia Research Group Inc. and changed its name to Extenway Solutions Inc. in October 2003. Extenway Solutions Inc. is headquartered in Baie-D'Urf茅, Canada.

Top Trucking Companies To Buy Right Now: VDM Group Ltd(VMG.AX)

VDM Group Limited operates as a design and construction company in Australia. The company?s Construction division services include civil and mechanical construction; mining, resources, and infrastructure construction; commercial and industrial construction; Hyparspace steel roof and wall structural system; and structural fabrication services. Its Contracting division services comprise civil contracting and bulk earthworks; mobile crushing and screening; dam construction and management; feed/ROM pad management; marine based civil contracting; drilling, blasting, and rock placement; port breakwater construction; and seawall construction services. The company?s Consulting division services consist of master and town planning; environmental, security, and building services consulting; project management and building design; and civil, structural, marine, traffic, and acoustic engineering services. It serves mining, oil and gas, infrastructure, civil, and transportation secto rs. VDM Group Limited is headquartered in Osborne Park, Australia.

Top Trucking Companies To Buy Right Now: Safety Medical Products Ltd(SFP.AX)

Safety Medical Products Limited engages in the development, manufacture, and commercialization of medical products in Australia. The company offers Securetouch single use manual retractable safety syringes. It also provides a range of sterilized feminine hygiene products, including tampons, pads, and liners, under the Pureste brand name; and imports and distributes medical products. The company was founded in 2001 and is based in Perth, Australia.

Top Valued Companies To Buy Right Now

Last year was a record year for mergers and acquisitions within the oil and gas industry. So far, 2013 is off to a fairly decent start, though we're off from the torrid pace seen at the end of 2012. Instead, we're seeing complex deals and joint ventures taking center stage. Is this a sign of things to come, or are we primed for an M&A boom?

Let's make a deal
So far this year, according to consulting firm PricewaterhouseCoopers, U.S.-based companies have spent $27 billion on M&A, which is slightly ahead of last year's pace of $25.7 deals in the first quarter. Still, we've seen a massive 52% drop-off from the fourth quarter of last year, as many companies sold out before we went over the fiscal cliff. We also haven't seen too many headline-making deals.

One of the largest deals this year, and the one that could make an interesting new trend had LINN Energy (NASDAQ: LINE  ) combine with its affiliate LinnCo (NASDAQ: LNCO  ) to purchase Berry Petroleum (NYSE: BRY  ) in an all-stock deal valued at $4.3 billion. The deal was unique because LINN is structured like an MLP while Berry is a C-Corp. To get the deal done, LINN used its newly public LinnCo, which is a C-Corp and whose only assets are units of LINN, to merge with Berry. Once the merger closes, LINN will trade its units to LinnCo for Berry's operating assets. LINN�believes�this new structure could be the new deal standard as it looks to continue to consolidate mature oil and gas assets in the United States. �

Top Valued Companies To Buy Right Now: Schlumberger N.V.(SLB)

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

Advisors' Opinion:
  • [By Rebecca Lipman]

     Together with its subsidiaries, supplies technology, integrated project management, and information solutions to the oil and gas exploration and production industries worldwide. Market cap of $91.49B. EPS growth (5-year CAGR) at 24%. According to Morgan Stanley: "Thanks to an estimated $1 billion investment per year in R&D, Schlumberger has what we consider the most advanced technology portfolio in the industry."

  • [By Robert Holmes]

     Schlumberger has the most potential upside of any stock in this group of 50 that also makes the firm's Best Ideas list. Analyst Ole Slorer says Schlumberger has "what we consider the most advanced technology portfolio in the industry."

    "Its fundamentals are impressive, with what we think are some of the best field personnel, a pristine service and performance reputation, and leading market share in most of its product lines," Slorer writes.

    Though Slorer's price target is 42% above current levels, his most bullish scenario for Schlumberger over the next year would see shares climb a whopping 116%. On the downside, his most bearish scenario for the company would see shares slide 38% over the next 12 months.

  • [By Lowell]

    Schlumberger (NYSE:SLB) is a premier supplier of technology and oil-well services and equipment. S&P has upgraded SLB to a “buy,” and Credit Suisse upgraded it to an “outperform” rating because the company exceeded recent earnings forecasts and increased its view of future earnings for 2011. SLB’s fundamental target is $117 and is based on earnings estimates of $3.85 for 2011, $5.40 for 2012, and $6.05 for 2013.

    Technically SLB may become the object of profit-taking following a recent run to over $95. Positions are recommended at around $85 with a target of $115 before December 2011, assuming a breakout through a triple-top at $95.

Top Valued Companies To Buy Right Now: Caterpillar Inc.(CAT)

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

Advisors' Opinion:
  • [By Roberto Pedone]

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

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

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

Top 10 Blue Chip Stocks To Own Right Now: Tupperware Corporation(TUP)

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

Advisors' Opinion:
  • [By Sam Collins]

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

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

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

Top Valued Companies To Buy Right Now: Dollar Tree Inc.(DLTR)

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

Advisors' Opinion:
  • [By Sam Collins]

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

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

Friday, June 21, 2013

Integrated trio for growth & income

George PutnamWith the stock market continuing to surge, it has become more of a challenge to find stocks trading at attractive valuations. One group that recently caught our eye is the major integrated oil companies.  

Most of the stocks in this group have underperformed the S&P 500 Index over the past year, many by a significant margin. These stocks have the added benefit of paying relatively high dividends.

Although they may be market laggards at the moment, we like the long-term prospects for the big oil companies.  Demand for oil (and natural gas, which many of them produce in addition to oil) is likely to keep rising for the foreseeable future, particularly in the developing countries.  

And whether oil prices go up or down, the major oil companies always seem to find a way to grind out substantial profits. Overall, an oil stock or two can be a useful "anchor to windward" when a bear market eventually rolls around.


These three trade at attractive valuations and pay generous dividends.

BP (BP) is in the middle of a major restructuring that was initially triggered by the disaster at its Deepwater Horizon rig in the Gulf of Mexico. The company has been shedding substantial assets, ranging from the Gulf of Mexico to Russia.

In spite of large settlements relating to the Gulf disaster, management has maintained a strong balance sheet. After a brief hiatus, it reinstated the dividend in 2011 and recently raised it.

BP's strategy is to develop higher margined assets; recent successes include a major offshore gas discovery in India and a winning bid for offshore Brazilian properties.

ConocoPhillips (COP) has streamlined its business through a number of asset sales over the last decade.  Now the company is more of a pure play exploration company than most of the other majors.  The asset sales have allowed Conoco to strengthen the balance sheet, including the pay-down of some $6 billion in debt.  

This gives management the flexibility to pursue an active capital investment program while also providing value to shareholders via dividends and share repurchases.

Exxon Mobil (XOM), formed via the 1999 merger between Exxon and Mobil, is the world's largest independent energy company. Its activities are well diversified with oil & gas exploration/production accounting for 64% of 2012 revenues, refining/marketing 28% and chemicals 8%.

Exxon is currently the largest producer of natural gas in the U.S., and the bulk of its $38 billion annual capital spending budget is focused on further building its reserves.  The balance sheet is strong, cash flow substantial and management is well regarded.

Thursday, June 20, 2013

Top 5 Logistics Stocks To Watch For 2014

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

What: Shares of Universal Truckload Services (NASDAQ: UACL  ) , a North American provider of trucking and logistics solutions, jumped as much as 12% after receiving an upgrade from BB&T�Capital Markets.

So what: According to BB&T Capital Markets, Universal Truckload's product offerings should broaden and its gross margins should improve following its $335 million purchase of privately held LINC Logistics, announced last year. BB&T upgraded Universal Trucking to a buy from a hold and set its price target at $33, implying 32% upside based on Friday's closing price.

Now what: As usual, the first thing you need to do is not allow the extremely short-term movements of analysts to cloud your long-term investing thesis. In the case of Universal Truckload, it's going to be a bumpy ride but management seems to have the steering wheel pointed in the right direction. The purchase of LINC adversely affected the company's bottom line because of a change in tax code last quarter and Universal could suffer as it sheds lower margin and unprofitable operations. However, I do see value in the LINC purchase and feel, after a moderate pullback, that this could be a name worth keeping an eye on in the trucking sector.

Top 5 Logistics Stocks To Watch For 2014: Rentcash Inc (CSF.TO)

The Cash Store Financial Services Inc. provides alternative financial products and services under Cash Store Financial and Instaloans names in Canada and the United Kingdom. The company primarily offers short-term advances and other financial services. Its financial products and services include payday loans, signature loans, line of credit, injury claims, standard and premium bank accounts, cheque cashing, prepaid credit and debit cards, money transfer services, and payment insurance services. The company was formerly known as Rentcash Inc. and changed its name to The Cash Store Financial Services Inc. in March 2008. The Cash Store Financial Services Inc. was founded in 2001 and is headquartered in Edmonton, Canada.

Top 5 Logistics Stocks To Watch For 2014: Telus Corporation Com Npv (T.TO)

TELUS Corporation provides telecommunications products and services primarily in Canada. Its telecommunications products and services include wireless, data, Internet protocol (IP), voice, and television. The company operates through two segments, Wireless and Wireline. The Wireless segment provides digital personal communications, equipment sales, and wireless Internet services. The Wireline segment offers voice local and voice long distance services; data services, which include television, and managed and legacy data services, as well as Internet, enhanced data, and hosting services; and other telecommunications services. As of December 4, 2012, it has 13 million customer connections, including 7.6 million wireless subscribers, 3.5 million wireline network access lines, 1.3 million Internet subscribers, and 635,000 TELUS TV customers. TELUS Corporation was founded in 1993 and is based in Burnaby, Canada.

Top Financial Companies To Watch For 2014: Russel Metals Inc Com Npv (RUS.TO)

Russel Metals Inc. engages in the processing and distribution of metals in Canada and the United States. The company operates in three segments: Metals Service Centers, Energy Tubular Products, and Steel Distributors. The Metals Service Centers segment sells plates, and flat rolled carbon and other general line carbon steel products comprising structurals, bars, sheet, pipe, tubing, and hollow structural steel tubing, as well as stainless steel, aluminum, and other non-ferrous specialty metal products in various sizes, shapes, and specifications. It also provides customized processing services. This segment serves end users in various industries, including machinery and equipment manufacturing, construction, shipbuilding, and natural resources, such as mining and petroleum. The Energy Tubular Products segment distributes oil country tubular goods, pipe piling, line pipes, tubes, valves, fluid handling products, and fittings; and processes and distributes steel pipe product s for the construction, oil and gas, and ski industries in the western United States. This segment serves energy, construction, manufacturing, pulp and paper, and mining industries. The Steel Distributors segment distributes steel in large volumes to other steel service centers and large equipment manufacturers. This segment sources carbon steel, plate, beams, channel, flat rolled products, and rail and pipe products. Russel Metals Inc. was founded in 1929 and is based in Mississauga, Canada.

Top 5 Logistics Stocks To Watch For 2014: Oasis Petroleum Inc.(OAS)

Oasis Petroleum Inc., an independent exploration and production company, engages in the acquisition and development of oil and natural gas resources in the Montana and North Dakota regions of the Williston Basin. The company?s primary project areas include West Williston, East Nesson, and Sanish. As of December 31, 2011, it had approximately 78.7 million barrels of oil equivalent of estimated net proved reserves. Oasis Petroleum Inc. was founded in 2007 and is based in Houston, Texas.

Top 5 Logistics Stocks To Watch For 2014: MECOM GROUP ORD GBP0.00608588(MEC.L)

Mecom Group plc engages in content and consumer business activities in Europe. It publishes regional daily newspapers, free door-to-door newspapers, and magazines. The company operates approximately 70 newspaper Websites and standalone niche Websites, 165 hyper-local Websites, and 4 print plants for printing publications, as well as owns 9 paid-for dailies and approximately 200 free-sheet titles in the Netherlands. It also has a portfolio of 2 national daily paid-for titles; 1 national daily free-sheet; a weekly national paid-for newspaper; 1 national business magazine; 7 local daily news and 47 local weekly newspapers under the name of Berlingske Lokale Medier; and 1 partly owned regional newspaper operating under the name of JydskeVestkysten, as well as operates 38 Websites, 39 hyper-local Websites, 9 mobile sites, 11 online TV channels, 5 print plants, and 1 national and 3 local radio stations in Denmark. In addition, the company has 30 newspapers, such as dailies, week lies, and free-sheets; 46 Websites; and 3 print plants in Norway; and operates Rzeczpospolita, a national daily newspaper; business daily Parkiet; and 10 regional newspapers in Poland, as well as owns 17 titles; and operates 30 Websites, 37 hyper-local Websites, and 7 small print plants. Mecom Group plc is headquartered in London, the United Kingdom.

Wednesday, June 19, 2013

San Juan Basin Sets Monthly Distribution

San Juan Basin Royalty Trust (NYSE: SJT  ) announced yesterday its July monthly distribution of $0.080643 per unit, based principally upon production during the month of April.

The board of directors said the dividend is payable on July 15 to the holders of record at the close of business on June 28. The trust reported that gas production for the properties from which the royalty was carved totaled approximately 2,938,341 million cubic feet, or 3,229,404 million BTUs.

Dividing revenues by production volume yielded an average gas price for April of $3.66 per Mcf ($3.33 per MMBtu) as compared to $3.32 per Mcf ($3.01 per MMBtu) for March. The distribution to the trust in any given month may include significant volume adjustments for sales in prior months that reflect pricing for those prior months.

The latest payment would equate to approximately $0.97-per-unit annual dividend, yielding 6.2% based on the closing price of San Juan Realty Trust's stock on June 18.

SJT Dividend Chart

SJT Dividend data by YCharts.

link

Tuesday, June 18, 2013

5 Best Recreation Stocks To Own Right Now

As part of a two-year deal, eBay's� (NASDAQ: EBAY  ) StubHub is moving into Canada by partnering with Hockey Night in Canada's Play On! nationwide event. Beginning this month and running until the end of June, the marketing effort will help StubHub connect with hockey fans across Canada.

Over nine weeks, the 2013 Play On! event will feature recreational and competitive four-on-four street hockey tournaments for all ages and skill levels. This year marks the�10th anniversary of the 21-city sports festival.

As part of the deal, StubHub will receive branding exposure across all 21 city events. In�Montreal, Toronto, Ottawa, Calgary, Vancouver, and the championships in Nova Scotia, StubHub will receive custom, on-site brand activations. It will also get promotion across several media platforms, including TV advertising on CBC, which airs Hockey Night in Canada.

5 Best Recreation Stocks To Own Right Now: Smith & Wesson Holding Corp (SWHC.O)

Smith & Wesson Holding Corporation (Smith & Wesson), incorporated on June 17, 1991, is a manufacturer of firearms. The Company manufactures a range of handguns, modern sporting rifles, hunting rifles, black powder firearms, handcuffs, and firearm-related products and accessories for sale to a range of customers, including gun enthusiasts, collectors, hunters, sportsmen, competitive shooters, individuals desiring home and personal protection, law enforcement and security agencies and officers, and military agencies in the United States and globally. It sell its products under the Smith & Wesson brand, the M&P brand, the Thompson/Center brand, and the Walther brand. The Company manufactures its firearm products at its facilities in Springfield, Massachusetts and Houlton, Maine. On July 26, 2012, it sold all of the assets of Smith & Wesson Security Solutions, Inc.

Firearms

During the fiscal year ended April 30, 2012 (fiscal 2012), the Company intr oduced multiple new handgun and modern sporting rifle models, and one new bolt action rifle platform. The Company's rifle introductions included the addition of the M&P15 300 Whisper to the Company's line of modern sporting rifles. As of April 30, 2012, the Company participated in three categories of the long-gun market and both core categories of the handgun market.

Handguns

The Company manufactures an variety of handgun models that include revolvers and pistols. A revolver is a handgun with a cylinder that holds the ammunition in a series of rotating chambers that are successively aligned with the barrel of the firearm during each firing cycle. There are two general types of revolvers: single-action and double-action. The Company's small-frame revolvers have been carried by law enforcement personnel and personal defense-minded citizens. The Company's revolvers are available in a variety of models and calibers, with applications in virtually all pr ofessional and personal markets.

The Company� �! s M&P15 Series of modern sporting rifles are designed to satisfy the functionality and reliability needs of global military, law enforcement, and security personnel. These rifles are also popular as sporting target rifles and are sold to consumers through the Company's sporting good distributors, retailers, and dealers. The Company has a range of product portfolio of modern sporting rifles, which includes a lower price-point, sport model, a .22 caliber model, and a fully automatic model designed for the exclusive use of military and law enforcement agencies throughout the world.

Hunting Firearms

The Company manufactures three lines of bolt-action rifles under its Thompson/Center brand consisting of several models in each line. The Company's hunting rifles are offered in 16 different calibers. Bolt-action rifles operate by the cycling of a bolt handle that allows for both the loading and unloading of rounds through a magazine fed system.

< p>During fiscal 2012, the Company introduced the Dimension bolt action rifle platform. Under the Company's Thompson/Center brand, the Company also offers seven models of American-made single shot black powder, or muzzle loader, firearms. The Company offers eight models of interchangeable, single shot firearm systems that deliver numerous gun, barrel, caliber configurations, and finishes. These systems can be configured as a center-fire rifle, rim-fire rifle, shotgun, black powder firearm, or single-shot handgun for use across the entire range of big- and small-game hunting.

Handcuffs

The Company manufactures handcuffs and restraints in the United States. The Company fabricates these products from the carbon or stainless steel.

Smith & Wesson Academy

Through the Smith & Wesson Academy, the Company offers instruction designed to meet the training needs of law enforcement and security customers worldwide. Classes are conduct ed at the Company's facility in Springfield, Massachus! etts o! r! on loca! tion around the world.

Specialty Services

The Company's services include forging, heat treating, finishing, and plating. It provides services to third-party customers.

The Company competes with Ruger,Taurus, Beretta, Glock, Heckler & Koch, Sig Sauer, Springfield Armory, Bushmaster, Rock River, Stag Arms, DPMS, Browning, Marlin, Remington, Ruger, Savage, Weatherby, CVA, Traditions, and Winchester.

5 Best Recreation Stocks To Own Right Now: Accell Group NV (ACCG.AS)

Accell Group NV is a Netherlands-based holding company. The Company and its subsidiaries divides its business into two segments: Bicycle & Bicycle Parts, active in the design, development, production, marketing and sales of bicycles, bicycle parts and accessories; and Fitness, providing fitness equipment. It sells bicycles under the Batavus, Bremshey, Ghost, Haibike, Hercules, Koga, Lapierre, Loekie, Redline, Sparta, Staiger, Tunturi, Winora, XLC and Raleigh brands via specialist bicycle retailers as well as bicycle parts under the Juncker Bike Parts and Wiener Bike Parts brands and fitness equipment under the Bremshey Sport brand. The Company�� main markets are the Netherlands, Germany, France, and European countries. The Company has production facilities in the Netherlands, Germany, France, Hungary and Belgium. As of December 31, 2011, it operated through 21 wholly owned subsidiaries. On May 22, 2012, the Company acquired Raleigh Cycle Limited.

Top Penny Companies For 2014: Smith & Wesson Holding Corp (SWHC)

Smith & Wesson Holding Corporation (Smith & Wesson), incorporated on June 17, 1991, is a manufacturer of firearms. The Company manufactures a range of handguns, modern sporting rifles, hunting rifles, black powder firearms, handcuffs, and firearm-related products and accessories for sale to a range of customers, including gun enthusiasts, collectors, hunters, sportsmen, competitive shooters, individuals desiring home and personal protection, law enforcement and security agencies and officers, and military agencies in the United States and globally. It sell its products under the Smith & Wesson brand, the M&P brand, the Thompson/Center brand, and the Walther brand. The Company manufactures its firearm products at its facilities in Springfield, Massachusetts and Houlton, Maine. On July 26, 2012, it sold all of the assets of Smith & Wesson Security Solutions, Inc.

Firearms

During the fiscal year ended April 30, 2012 (fiscal 2012), the Company introduced multiple new handgun and modern sporting rifle models, and one new bolt action rifle platform. The Company's rifle introductions included the addition of the M&P15 300 Whisper to the Company's line of modern sporting rifles. As of April 30, 2012, the Company participated in three categories of the long-gun market and both core categories of the handgun market.

Handguns

The Company manufactures an variety of handgun models that include revolvers and pistols. A revolver is a handgun with a cylinder that holds the ammunition in a series of rotating chambers that are successively aligned with the barrel of the firearm during each firing cycle. There are two general types of revolvers: single-action and double-action. The Company's small-frame revolvers have been carried by law enforcement personnel and personal defense-minded citizens. The Company's revolvers are available in a variety of models and calibers, with applications in virtually all professional and personal markets.

The Company�� M! &P15 Series of modern sporting rifles are designed to satisfy the functionality and reliability needs of global military, law enforcement, and security personnel. These rifles are also popular as sporting target rifles and are sold to consumers through the Company's sporting good distributors, retailers, and dealers. The Company has a range of product portfolio of modern sporting rifles, which includes a lower price-point, sport model, a .22 caliber model, and a fully automatic model designed for the exclusive use of military and law enforcement agencies throughout the world.

Hunting Firearms

The Company manufactures three lines of bolt-action rifles under its Thompson/Center brand consisting of several models in each line. The Company's hunting rifles are offered in 16 different calibers. Bolt-action rifles operate by the cycling of a bolt handle that allows for both the loading and unloading of rounds through a magazine fed system.

During fiscal 2012, the Company introduced the Dimension bolt action rifle platform. Under the Company's Thompson/Center brand, the Company also offers seven models of American-made single shot black powder, or muzzle loader, firearms. The Company offers eight models of interchangeable, single shot firearm systems that deliver numerous gun, barrel, caliber configurations, and finishes. These systems can be configured as a center-fire rifle, rim-fire rifle, shotgun, black powder firearm, or single-shot handgun for use across the entire range of big- and small-game hunting.

Handcuffs

The Company manufactures handcuffs and restraints in the United States. The Company fabricates these products from the carbon or stainless steel.

Smith & Wesson Academy

Through the Smith & Wesson Academy, the Company offers instruction designed to meet the training needs of law enforcement and security customers worldwide. Classes are conducted at the Company's facility in Springfield, Massachusetts or o! n locatio! n around the world.

Specialty Services

The Company's services include forging, heat treating, finishing, and plating. It provides services to third-party customers.

The Company competes with Ruger,Taurus, Beretta, Glock, Heckler & Koch, Sig Sauer, Springfield Armory, Bushmaster, Rock River, Stag Arms, DPMS, Browning, Marlin, Remington, Ruger, Savage, Weatherby, CVA, Traditions, and Winchester.

5 Best Recreation Stocks To Own Right Now: Accell Group NV (ACCEL)

Accell Group NV is a Netherlands-based holding company. The Company and its subsidiaries divides its business into two segments: Bicycle & Bicycle Parts, active in the design, development, production, marketing and sales of bicycles, bicycle parts and accessories; and Fitness, providing fitness equipment. It sells bicycles under the Batavus, Bremshey, Ghost, Haibike, Hercules, Koga, Lapierre, Loekie, Redline, Sparta, Staiger, Tunturi, Winora, XLC and Raleigh brands via specialist bicycle retailers as well as bicycle parts under the Juncker Bike Parts and Wiener Bike Parts brands and fitness equipment under the Bremshey Sport brand. The Company�� main markets are the Netherlands, Germany, France, and European countries. The Company has production facilities in the Netherlands, Germany, France, Hungary and Belgium. As of December 31, 2011, it operated through 21 wholly owned subsidiaries. On May 22, 2012, the Company acquired Raleigh Cycle Limited. Advisors' Opinion:
  • [By Tom Konrad]

    Accell is a leading bicycle manufacturer and a leader in electric bikes based in the Netherlands with worldwide sales mostly in Europe but expanding rapidly in the United States and Asia.  The company's strategy is to leverage its strong distribution network by acquiring strong brands in a highly fragmented industry.  In 2012, they acquired Raleigh, which was a slightly larger than usual acquisition.  Integrating Raleigh took longer than management expected, and depressed third quarter earnings and the company's current share price.  The company has a variable annual dividend, but based on the last payment of 0.782 euros, it's currently trading at a 5.9% annual yield.  Stock appreciation in 2013 could be driven by the start of synergies from the Raleigh acquisition, increased adoption of electric bikes in the US, or easing of uncertainty in Europe.

    Because smaller investors may find Accell difficult to buy through their broker's foreign trading desk, they may want to substitute one of my upcoming alternative picks.

Monday, June 17, 2013

Top 5 Cheap Stocks To Buy For 2014

In a recent filing with the SEC, Carl Icahn revealed that he has increased his stake in speech-to-text software maker Nuance Communications (NASDAQ: NUAN  ) to nearly 11%. He did this after Nuance reported disappointing earnings and deeply disappointing Q3 guidance, and the stock plunged to new levels of cheapness.

But is Nuance stock cheap for a reason? Fool contributor Rich Smith thinks Icahn is making a big mistake in buying into this company -- maybe even as big as his mistake when he bought into Blockbuster. Listen in, and find out why.

Speech recognition is yet another nascent technology set to explode with the rise of tablets and smartphones, and no company is better poised to benefit from this coming boom than Nuance Communications. However, this growth story doesn't come without risks, too. The Motley Fool recently published a premium research report to break down what investors interested in Nuance absolutely have to understand before investing, so click here now to grab your copy today.

Top 5 Cheap Stocks To Buy For 2014: Ur Energy Inc(URG)

Ur-Energy Inc., an exploration stage junior mining company, engages in the identification, acquisition, evaluation, exploration, and development of uranium mineral properties. The company has 13 projects located in Wyoming and Nebraska, the United States; and 3 exploration projects located in the Northwest Territories and Nunavut, Canada. Its landholdings cover approximately 90,000 acres in the United States and approximately 140,000 acres in Canada. The company was founded in 2004 and is headquartered in Littleton, Colorado.

Advisors' Opinion:
  • [By Louis]

    Junior mining company UR-Energy Inc.(URG) has watched its stock increase 73% in the past 12 months. Currently trading at $1.64, URG has more than doubled its 52-week low of 73 cents, and is a great choice for penny stock investors.

Top 5 Cheap Stocks To Buy For 2014: Progress Software Corporation(PRGS)

Progress Software Corporation operates as an enterprise software company worldwide. Its products include Progress OpenEdge platform, which offers development tools, application servers, application management tools, and an embedded database; Progress Orbix to address enterprise integration problems with standards-based solutions; and Progress ObjectStore, an object data management system to store data faster than relational database management system or file-based storage system. The company?s products also comprise Progress Responsiveness Process Management suite for business users; Progress Control Tower, an interactive business control panel; Progress Sonic, which comprises an enterprise messaging system and the enterprise service buses; Progress Actional that provides operational and business visibility, root cause analysis, and policy-based security and control of services; Progress Apama, which offers tools for creating, testing, and deploying strategies for applicat ions, including algorithmic trading, market aggregation, smart order routing, market surveillance and monitoring, and risk management; Progress Savvion BusinessManager, a business process management software; and Fuse products that provide customers with access to professional open source integration and messaging software. In addition, it offers Progress DataDirect Connect products, which provide data connectivity components; Progress DataDirect Shadow to provide foundation architecture for standards-based mainframe integration; and Progress Data Services product set that offers data integration for distributed applications. Further, the company provides maintenance, consulting, training, and customer support services. Progress Software Corporation sells its products to independent software vendors, original equipment manufacturers, and system integrators through direct sales force and independent distributors. The company was founded in 1981 and is based in Bedford, Massac husetts.

Advisors' Opinion:
  • [By Chris Stuart]

    Progress Software(PRGS) recently cut its outlook for the fiscal second quarter ended in May, saying execution problems at its EDS (enterprise data solutions) segment would lead to a shortfall.

    Mark Schappel from Benchmark Securities (which rates Progress a "buy" with a $31 target) says the shortfall is a speed bump in the company's ongoing transformation, and not a sign of a slump in infrastructure spending.

    TheStreet Ratings has a $34 price target on Progress Software.

10 Best Dividend Stocks To Invest In Right Now: Kimber Resources Inc(KBX)

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

Advisors' Opinion:
  • [By Louis Navellier]

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

  • [By Louis]

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

Top 5 Cheap Stocks To Buy For 2014: S&P GSCI(GD)

General Dynamics Corporation, an aerospace and defense company, provides business aviation; combat vehicles, weapons systems, and munitions; military and commercial shipbuilding; and communications and information technology products and services worldwide. Its Aerospace group designs, manufactures, and outfits various large and mid-cabin business-jet aircraft; provides maintenance, repair work, fixed-based operations, and aircraft management services; and performs aircraft completions for aircraft. The company?s Combat Systems group offers tracked and wheeled military vehicles, weapons systems, and munitions. Its product lines include wheeled combat and tactical vehicles; battle tanks and infantry vehicles; munitions and propellant; rockets and gun systems; and axle and drivetrain components and aftermarket parts. This group also manufactures and supplies engineered axles, suspensions, and brakes for heavy-load vehicles for military and commercial customers. The company Advisors' Opinion:

  • [By Vatalyst]

    General Dynamics (GD) operates in the aerospace/defense industry, is the fifth largest military contractor and one of the world’s largest makers of corporate jets. Its Gulfstream jet is one of the world’s most popular corporate aircraft.

    The common stock currently trades at price to earnings ratio of 8.9, well below industry average of 13.1 and its historical average of 13. Price to book ratio is 1.62 while price to cash flow ratio is 7.

  • [By Dave Friedman]

    The shares closed at $62.77, up $1.59, or 2.6%, on the day. They have traded in a 52-week range of $55.46 to $78.27. Volume today was 2,338,444 shares, against a 3-month average volume of 2,440,760 shares. Its market capitalization is $22.71 billion, its trailing P/E is 8.95, its trailing earnings are $7.01 per share, and it pays a dividend of $1.88 per share, for a dividend yield of 3.10%. About the company: General Dynamics Corporation is a diversified defense company. The Company offers a broad portfolio of products and services in business aviation; combat vehicles, weapons systems and munitions; shipbuilding design and construction; and information systems, technologies and services

  • [By Dave Friedman]

    The shares closed at $62.77, up $1.59, or 2.6%, on the day. They have traded in a 52-week range of $55.46 to $78.27. Volume today was 2,338,444 shares, against a 3-month average volume of 2,440,760 shares. Its market capitalization is $22.71 billion, its trailing P/E is 8.95, its trailing earnings are $7.01 per share, and it pays a dividend of $1.88 per share, for a dividend yield of 3.10%. About the company: General Dynamics Corporation is a diversified defense company. The Company offers a broad portfolio of products and services in business aviation; combat vehicles, weapons systems and munitions; shipbuilding design and construction; and information systems, technologies and services

Top 5 Cheap Stocks To Buy For 2014: AeroVironment Inc.(AVAV)

AeroVironment, Inc. designs, develops, produces, and supports unmanned aircraft systems (UAS), and efficient energy systems for various industries and governmental agencies. Its UAS provide intelligence, surveillance, and reconnaissance, including real-time tactical reconnaissance, tracking, combat assessment, and geographic data to the small tactical unit or individual war fighter. The UAS wirelessly transmit critical live video and other information generated by their payload of electro-optical or infrared sensors directly to a hand-held ground control system, enabling the operator to view and capture images during the day or at night on a hand-held ground control unit. AeroVironment also provides spare equipment, alternative payload modules, batteries, chargers, repair services, and customer support for the UAS. In addition, the company produces industrial productivity and clean transportation solutions for commercial and government customers, develops potential clean t ransportation solutions, and performs contract engineering services; offers PosiCharge electric vehicle charging systems for industrial electric material handling fleets, electric vehicle charging systems for passenger and fleet vehicles, and power cycling and test systems for developers and manufacturers of plug-in electric and hybrid vehicles, as well as battery packs, electric motors, and fuel cells; and supplies power cycling and test systems to research and development organizations that focus on developing electric propulsion systems, electric generation systems, and electricity storage systems. It supplies its UAS primarily to the organizations within the United States department of defense. AeroVironment, Inc. was incorporated in 1971 and is headquartered in Monrovia, California.

Advisors' Opinion:
  • [By Chris Stuart]

    AeroVironment(AVAV) sells unmanned, remote-control military aircraft and rapid-charging battery stations for electric vehicles.

    The stock has fallen due to concerns over U.S. defense budget cuts. According to Benchmark Research, the company should do well because of growth in its electric-vehicle-charging business. "We will see major deployment of electric-vehicle-charging infrastructure in the coming year to support multiple electric-vehicle introductions and the White House's target of 1 million EV by 2015."

    AeroVironment was recently named to a list of stocks by Goldman Sachs that have a 15% probability, or better, of being acquired. Shares of AeroVironment rocketed 20% Wednesday as quarterly earnings exceeded analysts' estimates. While the shares are not quite as attractive compared with when I first ran the screen June 20, they still have upside potential, given TheStreet Ratings $38 price target.