Friday, May 31, 2013

Best Healthcare Equipment Stocks To Own For 2014

These days, many want to suggest that cable TV offerings will be "killed" or "replaced" by content services being delivered over the Internet using content delivery networks. While that's not reality, those who make these suggestions speak as if the quality of the content delivered online is the same as what consumers get from cable TV. However, thanks to Conviva, we have data from some of the largest streamers on the web, that shows how difficult it really is to deliver video on the Internet, with reliability. In fact, of the 22.6 billion streams Conviva monitored in 2012, 60% of them had quality issues. 60%!

The quality of online video isn't even close to what cable TV delivers today when it comes to quality and reliability – yet many don't want to admit this as it goes against their agenda. I like data because it proves what's really going on in the market and when the sample size is so large, like what Conviva has shared, no rational person can argue with it. So rather than debate or speculate what may or may not work, we have the data to actually know.

Best Healthcare Equipment Stocks To Own For 2014: United Overseas Bank Ltd (U11.SI)

United Overseas Bank Limited provides financial products and services. The company�s Group Retail segment offers deposits, loans, investments, credit and debit cards, and insurance products to individuals and small enterprises; wealth management and restricted products, such as structured notes, funds of hedge funds, and insurance plans to the wealthy and affluent customers; and investment management, asset management, and estate planning services to the high net worth individuals and investors. United Overseas Bank�s Group Wholesale segment provides current accounts, deposits, lending, cash management, and cross-border payments; and asset, ship, trade, and structured finance to the medium and large enterprises, corporations, financial institutions, and government-linked companies and agencies. It also offers lead managing, equity underwriting, and corporate advisory services; solution-based structures to meet clients� financing requirements in structuring, underwriting , and arranging syndicated loans, leveraged buy-outs, and project and structured finance; and underwriting and lead managing bond issues. The company�s Global Markets and Investment Management segment offers treasury products and services comprising foreign exchange, money market, fixed income, derivatives, margin trading, futures broking, gold products, structured products, and banknote services, as well as engages in asset management, proprietary investment, and liquidity and capital funds management activities. United Overseas Bank�s Other segment is involved in insurance and property-related businesses. As of March 15, 2012, the company had a network of approximately 500 offices in 19 countries and territories in the Asia Pacific, western Europe, and North America. The company was formerly known as United Chinese Bank and changed its name to United Overseas Bank Limited in 1965. United Overseas Bank was founded in 1935 and is headquartered in Singapore.

Best Healthcare Equipment Stocks To Own For 2014: Ritchie Bros. Auctioneers Incorporated(RBA)

Ritchie Bros. Auctioneers Incorporated, an industrial auctioneer, sells various equipment to on-site and online bidders. The company, through unreserved public auctions, sells a range of used and unused industrial assets, including equipment, trucks, and other assets utilized in the construction, transportation, agricultural, material handling, mining, forestry, petroleum, and marine industries. It also provides Internet bidding services, which facilitate customers access to live and online auction participation. The company primarily serves buyers and sellers of equipment, trucks, and other industrial assets; rental companies and brokers; finance companies; and truck and equipment dealers. As of December 31, 2011, it operated approximately 110 locations in approximately 25 countries, including 43 auction sites worldwide. The company was founded in 1963 and is headquartered in Burnaby, Canada.

Top 5 Healthcare Technology Stocks To Own Right Now: Illumina Inc.(ILMN)

Illumina, Inc. develops, manufactures, and markets integrated systems for the analysis of genetic variation and biological function. Its instrumentation products include HiSeq 2000, an instrument for high-throughput (up to 200 Gb per run and up to 25 GB per day) sequencing using sequencing-by-synthesis (SBS) technology; Genome Analyzer IIx, an instrument for medium to high-throughput (up to 95 Gb per run) sequencing using SBS technology; Genome Analyzer IIe, an instrument for low to medium throughput (up to 40 Gb per run) sequencing using SBS technology; iScan System, a high-resolution imaging instrument to scan BeadArray based assays; and BeadXpress Reader, a low- to mid-multiplex, high-throughput instrument for readout of assays. The company?s consumables consist of InfiniumHD Whole-Genome BeadChips comprising HumanOmniExpress, HumanOmni1-Quad, Human1M-Duo, and BovineHD, which are multi-sample DNA analysis microarrays; iSelect Custom Genotyping BeadChips that are custome r designable SNP genotyping arrays; GoldenGate Assay Method, a high throughput assay and genotyping system; GoldenGate Universal-32 Sample BeadChip, which are 32 sample GoldenGate genotyping arrays; Paired-End Genomic DNA Sample Prep Kit, a streamlined library preparation kit to generate 200?500 kb insert paired-end reads; VeraCode GoldenGate that are low plex GoldenGate genotyping arrays compatible with the BeadXpress System; Standard Sequencing Kit, reagents used for SBS chemistry on sequencing platforms; and Infinium Assay Kit, reagents used to perform Infinium assays on the iScan platform. It also provides sequencing and genotyping services. The company?s customers include pharmaceutical, biotechnology, agrichemical, diagnostics, and consumer products companies, as well as research centers. It sells its products through distributors in North America, Europe, the Asia-Pacific, the Middle East, and South Africa. Illumina was founded in 1998 and is headquartered in San Dieg o, California.

Advisors' Opinion:
  • [By Zacks]

    Illumina, Inc. (ILMN - Snapshot Report) watched its share price surge 33% in October as the genetic-testing company announced a strong third-quarter performance at mid month. Earnings per share of 32 cents reversed a year-ago loss and doubled the consensus estimate. Meanwhile, total revenues of $53.5 million soared 174% year-over-year from $19.5 million, marking its 21st straight quarter of revenue growth. The Zacks #1 Rank company now expects total revenue of between $178 million and $182 million for fiscal 2006, which is an increase of $8 million to $12 million over its earlier guidance. ILMN expects non-GAAP earnings per share of $1.

Best Healthcare Equipment Stocks To Own For 2014: Harleysville Group Inc.(HGIC)

Harleysville Group Inc., through its subsidiaries, engages in the property and casualty insurance business primarily in the eastern and midwestern United States. It underwrites personal and commercial property and casualty coverages, including automobile, homeowners, commercial multi-peril, and workers compensation. The company markets its insurance products through independent agents to individuals, and small and medium-sized businesses. Harleysville Group Inc. was founded in 1979 and is based in Harleysville, Pennsylvania. Harleysville Group Inc. operates as a subsidiary of Harleysville Mutual Insurance Company.

Best Healthcare Equipment Stocks To Own For 2014: A. Schulman Inc.(SHLM)

A. Schulman, Inc. supplies plastic compounds and resins for packaging, consumer products, industrial, and automotive applications. The company offers additive compounds, custom color concentrates for film and molding, carbon black color concentrates, white color concentrates, additive compounds for polyester resins and special pearl effects, antistatic concentrates, and masterbatch for the production of synthetic paper. Its products also include engineered plastics, such as thermoplastic elastomers and vulcanizates, filled and unfilled nylon and PBT compounds, nylon/ABS alloys, formulated ionomer compounds, thermoplastic ionomer resins, flame-retardant thermoplastic compounds and concentrates, polypropylene, polyethylene, EVA compounds, thermoplastic olefins, flexible thermoplastic PVC compounds, high-quality PVC compounds, PVC-based thermoplastic elastomers, and low-gloss PVC thermoplastic elastomers for industrial packaging, appliances, electrical connectors, power tools , recreational items, and lawn and garden equipments. In addition, the company provides custom color and specialty compound powders, rotational molding process compounds, cross-linkable resin used in rotational molding, high heat-distortion temperature materials, and thermoplastic powders, as well as provides jet milling services used for products requiring very fine particle size, such as additives for printing ink, adhesives, waxes, and cosmetics; and cryogenic milling services for heat sensitive materials. Further, it buys, repackages, and re-sells polymers for various processing types comprising injection molding, blow molding, thermoforming, and extrusion, as well as provides tolling services. The company operates in Europe, the Middle East, Africa, the Americas, and the Asia Pacific. A. Schulman, Inc. was founded in 1928 and is headquartered in Akron, Ohio.

Best Healthcare Equipment Stocks To Own For 2014: Ditem Explorations Inc. (DIT.V)

Ditem Explorations Inc. engages in the exploration and development of mineral properties in Canada. It primarily explores for uranium deposits. The company�s principal properties are located in the Otish Basin of the Otish Mountains region of north-central Quebec; and the Athabasca Basin of the Athabasca Lake region of northern Saskatchewan. It also owns interest in various rare earth properties located in the Otish Mountain region and North Shore region in Quebec. Ditem Explorations Inc. was incorporated in 1993 and is based in Montr茅al, Canada.

Top 10 Beverage Companies To Buy For 2014

Global beverage titan Coca-Cola (NYSE: KO  ) has for a long time been one of Warren Buffett's largest holdings at Berkshire Hathaway (NYSE: BRK-B  ) . Buffett began purchasing Coke stock in 1988, and the stock saw tremendous gains for the next decade, leading some observers to call Coca-Cola one of his greatest investments. Yet the stock's performance since 1998 has been decidedly mediocre.

Coke stock has joined in the recent market rally, more than doubling off its Great Recession low. That said, I'm skeptical that the company will be able to grow its bottom line enough to justify its generous P/E ratio of 20.7. Coca-Cola may therefore continue its long run as one of the biggest dogs of Buffett's portfolio.

A love affair with Coke
Coca-Cola has been the largest holding in Berkshire Hathaway's equity portfolio for much of the past two decades. In the earliest 13F filing available online from the SEC -- for the first quarter of 1999 -- Berkshire Hathaway reported holding 200 million shares of Coke stock, valued at $61.375 a share, or more than $12 billion in total.

Top 10 Beverage Companies To Buy For 2014: Central European Distribution Corp (CEDCQ)

Central European Distribution Corporation (CEDC), incorporated on September 4, 1997, operates primarily in the alcohol beverage industry. CEDC is a producer of vodka and is Central and Eastern Europe�� integrated spirit beverages business. During the year ended December 31, 2011, as measured by total volume, the Company produced and distributed approximately 33.2 million nine-liter cases . The Company�� business primarily involves the production and sale of its own spirit brands (principally vodka), and the importation on a basis of a range of spirits, wines and beers. Its primary operations are conducted in Poland and Russia. In addition the Company also has operations in Hungary and Ukraine. CEDC has six manufacturing facilities located in Poland and Russia. On February 7, 2011, the Company completed purchasing of the remaining stake of the Whitehall Group.

CEDC is an importer of spirits, wines and beers in Poland, Russia and Hungary. The Company maintains import contracts for a number of internationally recognized brands, including Jim Beam Bourbon, Campari, Jagermeister, Remy Martin Cognac, Corona, Budweiser (Budvar), E&J Gallo wines, Carlo Rossi wines, Sutter Home wines, Metaxa Brandy, Sierra Tequila, Teacher�� Whisky, Cinzano, Old Smuggler, Grant�� Whisky and Concha y Toro wines. In addition to its operations in Poland, Russia, and Hungary the Company has Ukraine and distribution agreements for its vodka brands in a number of key export markets including the United Kingdom, Ukraine, the Baltics and the CIS for Green Mark, Zhuravli, Parliament and Zubrowka, the United States, Japan, the United Kingdom, France for Zubrowka and many other Western European countries. In 2011, exports represented 11% of its sales by value.

Poland

In Poland, CEDC is the vodka producers with a brand portfolio that includes Absolwent, Zubrowka, Zubrowka Biala, Bols, Palace and Soplica brands, each of which it produces at its Polish distilleries. It produces and sells vodka! s primarily in three vodka sectors: premium, mainstream, and economy. The Company owns two production sites in Poland: one in Oborniki and one in Bialystok. In the Oborniki distillery, it produces the Bols and Soplica vodka brands, among other spirit brands. In Bialystok it produces Absolwent and Zubrowka. Zubrowka is also exported out of Poland to many markets around the world, including the United States, England, Japan and also France. In addition to the Absolwent and Zubrowka brands, in Bialystok it produces the Zubrowka Biala brand. The Company has rights to import and distribute approximately 70 brands of spirits, wine and beer into Poland. It also provides marketing support to the suppliers. During 2011, the Company sold approximately 10.7 million nine-liter cases of vodka, wine and spirits through its Polish business during 2011 including both its own produced vodka brands as well as its exclusive agency import brands. During 2011, the Company sold approximately 191 thousand nine-liter cases of Zubrowka outside of Poland. During 2011, the Company�� Polish operations accounted for 26.3% of its revenue.

Russia

CEDC produces Green Mark in Russia and the sub-premium vodkas in Russia, Parliament and Zhuravli. During 2011 the Company introduced new brands to the Russian market Talka, Sotka and Silver Blend. The Company also produces Yamskaya, the economy vodka in Russia, and premixed alcohol drinks, or long drinks. The Company also owns Whitehall, which holds the exclusive rights to the import of such leading premium wine and spirit brands as Concha y Toro, Paul Masson, Robert Mondavi, DeKuyper, Jose Cuervo and Label 5. In addition to these import activities, Whitehall has distribution centers in Moscow, Saint Petersburg, and Rostov as well as a wine and spirits retail network located in Moscow. During 2011, the Company�� Russian operations accounted for 70.2% of its revenue. During 2011,the Company produced and sold approximately 16.6 million nine-liter cases of vodka th! rough its! Russian business in the main vodka segments in Russia: premium, sub-premium, mainstream, economy and cheap. In addition it produced and sold approximately 2.8 million nine-liter cases of long drinks.

Hungary

The Company sells Royal Vodka in Hungary through its Bols Hungary subsidiary. The imported brands to Hungary include Bols Vodka, Zubrowka, Royal Vodka, Campari, Cinzano, Jaegermeister, Bols Liqueurs, Cointreau, Carolans, Galliano, Irish Mist, Jose Cuervo, Calvados Boulard, Remy Martin, Metaxa, St Remy, Grant��, Glenfiddich, Tullamore Dew and Old Smuggler.

Top 10 Beverage Companies To Buy For 2014: Molson Coors Brewing Company(TAP)

Molson Coors Brewing Company brews, markets, sells, and distributes beer brands. It sells its products in Canada, under the Coors Light, Molson, Rickard's Red, Carling, Pilsner, Keystone Light, Creemore Springs, and Granville Island brands. The company also brews or distributes products under license from third parties, which include Heineken, Amstel Light, Murphy's, Asahi, Asahi Select, Miller Lite, Miller Genuine Draft, Miller Chill, Milwaukee's Best, Milwaukee's Best Dry, and Foster's. In addition, it imports, distributes, and markets the Corona, Coronita, Negra Modelo, and Pacifico brands, through a joint venture agreement with Grupo Modelo. Further, the company sells various brands in the United States, which include Coors Light, Miller Lite, Coors Banquet, Miller Genuine Draft, MGD 64, Miller Chill, Sparks, Miller High Life, Miller High Life Light, Keystone Light, Icehouse, Mickey's, Milwaukee's Best, Milwaukee's Best Light, Old English 800, Blue Moon, Henry Weinhard 's, George Killian's Irish Red, Leinenkugel's, Peroni Nastro Azzurro, Pilsner Urquell, Grolsch, Coors Non-Alcoholic, and Sharp's. Additionally, it sells various brands in the United Kingdom comprising Carling, C2, Coors Light, Worthington's, White Shield, Caffrey's, Kasteel Cru, and Blue Moon, as well as various regional ale brands. The company also sells the Grolsch brands through a joint venture with Royal Grolsch N.V. and the Cobra brands through a joint venture called Cobra Beer Partnership Ltd.; and distributes brands sold under license, including Corona, Coronita, Negra Modelo, Pacfico, Singha, and Magners Draught Cider. In addition, it markets and sells Zima, Si'hai, Coors Gold, and Coors Extra brands to various international markets. The company was formerly known as Adolph Coors Company and changed its name to Molson Coors Brewing Company as a result of its merger with Molson Inc. in February 2005. Molson Coors Brewing Company was founded in 1873 and is headquartere d in Denver, Colorado.

Top Tech Stocks To Invest In 2014: Fomento Economico Mexicano SAB de CV (FMX)

Fomento Economico Mexicano, S.A.B. de C.V. (FEMSA), incorporated on May 30, 1936, is a holding company. The Company conducts its operations through principal holding companies, each of which it refers to as a principal sub-holding company. These companies are Coca-Cola FEMSA, S.A.B. de C.V. (Coca-Cola FEMSA), which engages in the production, distribution and marketing of soft drinks, and FEMSA Comercio, S.A. de C.V. (FEMSA Comercio), which operates convenience stores. The Company�� convenience store chain OXXO operated a total of 7,492 stores as of March 31, 2010. Compania Internacional de Bebidas, S.A. de C.V. (CIBSA) owns a 53.7% interest in Coca-Cola FEMSA. On April 30, 2010, FEMSA announced the closing of the transaction, pursuant to which FEMSA agreed to exchange 100% of its beer operations conducted by FEMSA Cerveza for a 20% economic interest in the Heineken Group. In February 2009, Coca-Cola FEMSA acquired with The Coca-Cola Company the Brisa bottled water business in Colombia from Bavaria, a subsidiary of SABMiller. Coca-Cola FEMSA acquired the production assets and the rights to distribute in the territory, and The Coca-Cola Company obtained the Brisa brand.

Coca-Cola FEMSA, S.A.B. de C.V.

Coca-Cola FEMSA is a bottler of Coca-Cola trademark beverages. Coca-Cola FEMSA operates in various territories, including Mexico, a substantial portion of central Mexico (including Mexico City and the states of Michoacan and Guanajuato) and southeast Mexico (including the Gulf region); Central America, including Guatemala (Guatemala City and surrounding areas), Nicaragua (nationwide), Costa Rica (nationwide) and Panama (nationwide); Colombia; Venezuela; Argentina, including Buenos Aires and surrounding areas, and Brazil, including the area of greater Sao Paulo, Campinas, Santos, the state of Mato Grosso do Sul, the state of Minas Gerais and part of the state of Goias.

Coca-Cola FEMSA produces, markets and distributes Coca-Cola trademark beverages, own brands and b! rands licensed from the Company. The Coca-Cola trademark beverages include sparkling beverages (colas and flavored sparkling beverages), water, and still beverages (including juice drinks, ready-to-drink teas and isotonics). Out of the more than 100 brands and line extensions of beverages sold and distributed by Coca-Cola FEMSA, its most important brand, Coca-Cola, together with its line extensions, Coca-Cola light, Coca-Cola Zero and Coca-Cola light caffeine free, accounted for 61.4% of total sales volume during the year ended December 31, 2009. Coca-Cola FEMSA�� next largest brands, Ciel (a water brand from Mexico), Fanta (and its line extensions), Sprite (and its line extensions), ValleFrut and Hit, accounted for 10.5%, 5.8%, 2.6%, 1.5% and 1.3%, respectively, of total sales volume in 2009. Coca-Cola FEMSA uses the term line extensions to refer to the different flavors in which it offers its brands.

Coca-Cola FEMSA produces, markets and distributes Coca-Cola trademark beverages in each of its territories in containers authorized by The Coca-Cola Company, which consist of a variety of returnable and non-returnable presentations in the form of glass bottles, cans and plastic bottles made of polyethylene terephtalate (PET). Coca-Cola FEMSA uses the term presentation to refer to the packaging unit in which it sells its products. Presentation sizes for its Coca-Cola trademark beverages range from a 6.5-ounce personal size to a 3-liter multiple serving size. For all of its products excluding water, Coca-Cola FEMSA considers a multiple serving size as equal toor larger than one liter. In addition, it sells some Coca-Cola trademark beverage syrups in containers designed for soda fountain use, which it refers to as fountain. It also sells bottled water products in bulk sizes, which refers to presentations equal to or larger than five liters, which have a much lower average price per unit case than its other beverage products.

In Mexico, Coca-Cola FEMSA�� product portfolio consis! ts of Coc! a-Cola trademark beverages, and includes Mundet trademark beverages licensed from FEMSA in some Mexican territories. Coca-Cola FEMSA�� product sales in Latincentro consist predominantly of Coca-Cola trademark beverages. Per capita consumption of its sparkling beverages products in Colombia and Central America was 92 and 146 eight-ounce servings, respectively, in 2009. Its product portfolio in Venezuela consists of Coca-Cola trademark beverages. Sparkling beverages per capita consumption of its products in Venezuela was 174 eight-ounce servings during 2009. Coca-Cola FEMSA�� product portfolio in Mercosur consists mainly of Coca-Cola trademark beverages, and the Kaiser beer brand in Brazil, which Coca-Cola FEMSA sells and distributes on behalf of FEMSA Cerveza. Sparkling beverages per capita consumption of its products in Brazil and Argentina was 214 and 359 eight-ounce servings, respectively, in 2009.

The Company competes with Pepsi Beverage Company, Grupo Embotelladores Unidos, S.A.B. de C.V., Grupo Jumex, Groupe Danone, Cadbury Schweppes, Big Cola, Consorcio AGA, S.A. de C.V., Postobon, Florida Ice and Farm Co. S.A., Cerveceria Nacional, S.A., Pepsi-Cola Venezuela, C.A., AmBev and Quilmes Industrial S.A.

FEMSA Comercio, S.A. de C.V.

FEMSA Comercio operates a chain of convenience stores in Mexico, under the trade name OXXO. OXXO stores are concentrated in the northern part of Mexico, but also have a presence in central Mexico and the Gulf coast. FEMSA Comercio is the largest single customer of FEMSA Cerveza and of the Coca-Cola system in Mexico. During 2009, a typical OXXO store carried 1,954 different store keeping units (SKUs) in 31 main product categories.

The Company competes with 7-Eleven, Super Extra, Super City, Circle-K and AM/PM.

Advisors' Opinion:
  • [By Jon Markman]

    Renowned trader, journalist and money manager Jon Markman finished one spot ahead of La Monica last year thanks to Hershey‘s (NYSE:HSY) 20% returns. This year, he’s trading in the sweets for emerging market pick Fomento Economico Mexicano (NYSE:FMX), often referred to asFemsa.

    While Markman thinks the U.S. will struggle with austerity in the coming months, he also believes that if we head just a little bit south, we will find one of the greatest potential growth profiles in the world: Mexico, where Femsa is based.

    “Femsa caters to more than 1.7 million retailers and 215 million consumers, and is the No. 1 beverage provider in every region that it operates in. The firm has grown revenues by 16% annually for the last 10 years,” he explains.

    In fact, last year, FMX tallied impressive 44% gains. On the next pullback, he says, it will be time to buy.

Top 10 Beverage Companies To Buy For 2014: Pepsico Inc.(PEP)

PepsiCo, Inc. engages in the manufacture, marketing, and sale of foods, snacks, and carbonated and non-carbonated beverages worldwide. The company operates in four divisions: PepsiCo Americas Foods (PAF); PepsiCo Americas Beverages (PAB); PepsiCo Europe; and PepsiCo Asia, Middle East, and Africa (AMEA). The PAF division offers Lay?s and Ruffles potato chips, Doritos and Tostitos tortilla chips and dips, Cheetos cheese flavored snacks, Fritos corn chips, Quaker Chewy granola bars, and SunChips multigrain snacks in North America; Quaker oatmeal, Aunt Jemima mixes and syrups, Cap?n Crunch cereal, Quaker grits, and Life cereal, as well as Rice-A-Roni, Pasta Roni, and Near East side dishes in North America; and various snack foods under Doritos, Marias Gamesa, Cheetos, Ruffles, Emperador, Saladitas, Sabritas, and Lay?s brands in Latin America. The PAB division provides carbonated soft drinks, beverage concentrates, fountain syrups, and finished goods under Pepsi, Mountain Dew, Gatorade, 7UP, Tropicana Pure Premium, Electropura, Sierra Mist, Epura, and Mirinda brands; ready-to-drink tea, coffee, and water products through joint ventures with Unilever and Starbucks; and sells concentrate to authorized bottlers, and branded finished goods directly to independent distributors and retailers. This division also manufactures third-party brands, such as Dr Pepper, Crush, Rock Star, and Muscle Milk. The PepsiCo Europe division offers Frito Lay Snacks, Pepsi-Cola beverages, Gatorade sports drinks, Tropicana juices, and Quaker foods in Europe. The AMEA division provides snack food under the Lay?s, Kurkure, Chipsy, Doritos, Smith?s, Cheetos, Red Rock Deli, and Ruffles brands; Quaker-brand cereals and snacks; and beverage concentrates, fountain syrups, and finished goods under the Pepsi, Mirinda, 7UP, and Mountain Dew brands. PepsiCo, Inc. was founded in 1898 and is headquartered in Purchase, New York.

Advisors' Opinion:
  • [By Dennis Slothower]

    PepsiCo, Inc. (PEP) manufactures, markets, and sells various foods, snacks, and carbonated and non-carbonated beverages worldwide. The company operates in four divisions: PepsiCo Americas Foods (PAF), PepsiCo Americas Beverages (PAB), PepsiCo Europe, and PepsiCo Asia, Middle East and Africa (AMEA). PAF divisions. The company has raised distributions for 38 years in a row and yields 2.90%. The company is attractively valued at the moment at 16.60 times earnings.

  • [By Chuck]

    PepsiCo Inc. is a strong defensive play with steady and stable growth and dividend yield. It provides investors with a place to park low-risk capital.

    The stock has had a tight trading range in the last year. It is extremely liquid and has a liquid options market.

    Let’s buy our exposure while the market is weak overall, but use the market to help average into this one. If you want to invest 3% of your low-risk portfolio, let’s buy 2% at market now.

    For the last third, let’s put in a limit order at 5% below your first fill.

    Pepsi also makes a great covered-call vehicle. The stock is not going to run away from us if we cap our near-term upside, and if it did, we can always repurchase it on weakness.

How the New York Stock Exchange Has Changed in the Last 30 Years

I recently met up with Doreen Mogavero, a longtime New York Stock Exchange trader, on the floor of the NYSE.

I asked Doreen how the world's most famous stock exchange has changed during her three-decade career. Here's what she had to say (transcript follows):

Doreen Mogavero: I've been a trader on the floor of the New York Stock Exchange since 1979.

Morgan Housel: How has the New York Stock Exchange changed during the time you've been here?

Mogavero: That's a very broad question. We've changed in a number of ways, and I think one of our very best points is that we always do change, right? I think obviously technology would be the biggest change that we've seen, and the effect that technology has had on the trading floor in terms of the amount of people that are here.

Housel: So when we look right behind you, there are shockingly few people down there, and it seems like a large portion of who is down there is the media. So what happened to all the people? Where did they go?

Mogavero: Well I wouldn't say "shockingly"; I would say there are less people than there used to be, obviously, but I think that a lot of the people left for actually a variety of reasons. As we all saw the Baby Boom generation move up, you had a lot of people retire, so that was one reason we saw an exodus from the building. Obviously some of the jobs that we did previously can now be done by technology and computers, so we've seen people leave for that reason. And you know, a lot of people who were in the Baby Boomer generation that did not retire, there was a huge learning curve in learning all of this technology, and I think not everybody was suited to learn it. When you get to be 55, 60 years old, it's kind of a big; I know this for a fact. It's a very big learning curve, so not everybody chose to do it.

Housel: And those changes took place really in the last decade, is that right?

Mogavero: Yeah.

Housel: So if we came here in 1999 or 2000, there would be a lot more people down on the floor today, right?

Mogavero: Oh yes, many more.

Ford's Attempt to Revive Europe Sales

U.K. Stocks Decline as FTSE 100 Index Trims Monthly Gain

U.K. stocks declined, with the FTSE 100 (UKX) Index heading for its first two-week drop since November, as the equity benchmark trimmed the longest streak of monthly gains since its inception.

Imagination Technologies Group Plc (IMG) dropped 2.1 percent as Bank of America Corp.'s Merrill Lynch unit recommended that investors sell the shares.

The FTSE 100 lost 50.35 points, or 0.8 percent, to 6,606.64 at 8:51 a.m. in London. The gauge is still headed for a 2.8 percent advance in May, its 12th consecutive month of gains. The broader FTSE All-Share Index declined 0.7 percent today, while Ireland's ISEQ Index slipped 0.5 percent.

The number of shares changing hands on FTSE 100-listed companies was 24 percent greater than the average of the past 30 days, data compiled by Bloomberg shows.

A report at 9:55 a.m. New York time will probably show that U.S. consumer sentiment climbed in May to the highest level since July 2007. The Thomson Reuters/University of Michigan index of consumer confidence climbed to 83.7 from 76.4 in April, according to the median economist forecast.

A separate release at 9:45 a.m. may show business activity in the U.S. stagnated this month. The MNI Chicago Report's business barometer rose to 50 in May, from 49 in April, economists forecast in a Bloomberg survey. A reading of 50 is the dividing line between expansion and contraction.

The U.K. economy will grow faster than previously forecast through to 2015, the British Chambers of Commerce said today. Gross domestic product will rise 0.9 percent this year, 1.9 percent next year and 2.4 percent in 2015, compared with previous forecasts of 0.6 percent, 1.7 percent and 2.2 percent, the London-based lobby group said.

A U.K. consumer-sentiment index published by GfK NOP Ltd. climbed 5 points to minus 22, matching the reading in November, which was the strongest in 18 months.

Thursday, May 30, 2013

Does This Justify Google's Motorola Mobility Acquisition?

Looking back, it was really just a matter of time. Last year's acquisition of Motorola Mobility, for $40 a share, totaling a cool $12.5 billion, was a watershed moment for Google  (NASDAQ: GOOG  ) . Ostensibly, Google's largest acquisition to date was completed to secure Motorola Mobility's 17,000 patents, along with another 7,500 that were pending approval. The idea was the patents would ward off potential patent-related lawsuits.

But Google CEO Larry Page wasn't fooling anyone; buying Motorola Mobility was a direct means to go after Apple (NASDAQ: AAPL  ) and Samsung in the lucrative U.S. smartphone OEM market. Google's partnership with LG has already produced a Nexus smartphone, and Motorola has some, too, but that's so un-Google. If we've learned anything over the past couple of years, it's that Google isn't afraid to aggressively enter new markets with guns blazing: Google Fiber, the use of white space for wireless connectivity, self-driving cars, Glass -- the list goes on and on.

So, when is Google -- via its Motorola Mobility unit -- going to get to work manufacturing its own high-end smartphone, and get serious about taking on Apple? Turns out, that time is nearly here.

Get ready for Moto X
Motorola has a suite of smartphone alternatives, of course; its RAZR phone was once a cutting-edge mobile device. But as Apple's iPhone and Samsung's Galaxy line of phones hit the streets, Motorola's share of the domestic smartphone pie continued to shrink -- down to an 8.5% market share in March of this year, from 9.1% the end of 2012. Google doesn't take losing lightly. The answer? Step up to the plate with its own premium Motorola Mobility phone, manufactured right here in the U.S.

As we learned through an interview with Motorola Mobility CEO Dennis Woodside at the All Things Digital conference, the manufacturing of the Moto X phone -- which will sport a new design, using two batteries to save power, and possibly incorporate sensors to predict users' needs -- will be outsourced, but it's Google-backed Motorola Mobility, through and through. As Woodside put it, "We're trying to bring Motorola back to its roots." And maximize the $12.5 billion purchase price, while at the same time going after Apple's share of the domestic smartphone market? You can bet on that.

The target date for rolling out the Moto X is this October and, like Apple and its iMacs, Moto X will be made in the USA -- just outside Fort Worth, Texas, to be precise. Moto X will generate about 2,000 local jobs, too.

Google is also exploring ways to incorporate cutting-edge technologies into its Moto X smartphone, including electronic tattoos and wearable devices to confirm a Moto X user's identity. As Google continues to push the envelope, and combines its drive for innovation with taking ownership of its own OEM devices, who knows where its smartphone will end and an all-in-one mobile device begin? A lack of innovation has been mentioned time and again as one reason Apple's share price has declined so dramatically lately. That's not likely to be a problem for a Google-driven Motorola Mobility device.

Unseating Apple in the U.S. isn't going to happen overnight, if it happens at all. With 39% of the domestic smartphone market as of Q1 of 2013, Apple actually stretched its lead over Samsung (at least in the U.S.). Not surprisingly, Google's Android continues to rule the OS roost, running 52% of all Americans' smartphones in Q1. Google's OS market domination, along with its willingness to push technology to new heights, bode well for Google's latest foray. Maybe Page knew what he was doing when he plopped down $12.5 billion for Motorola Mobility, after all.

It's more important than ever to understand each piece of Google's sprawling empire. In The Motley Fool's new premium research report on Google, we break down the risks and potential rewards for Google investors. Simply click here now to unlock your copy of this invaluable resource.

Apple Stock Keeps Collecting Dust

Top 5 Asian Companies To Own For 2014

European (SXXP) stocks advanced, as retailers and personal-goods makers rallied, before a report on American unemployment claims. U.S. index futures were little changed, while Asian shares rose.

Marks & Spencer Group Plc (MKS) climbed to a three-week high after posting sales growth that exceeded projections. Eurasian Natural Resources Corp. dropped 5.8 percent after a report that its chairman has threatened to quit. Evraz Plc (EVR), Russia�� biggest steelmaker, fell the most since November 2011 as it refrained from announcing a final dividend for 2012.

The Stoxx Europe 600 Index added 0.2 percent to 293.84 at 9:21 a.m. in London, for the longest winning streak since Jan. 4. Futures on the Standard & Poor�� 500 Index rose less than 0.1 percent. The MSCI Asia Pacific Index gained 1.5 percent to a 20- month high.

Top 5 Asian Companies To Own For 2014: Serial System Ltd (S69.SI)

Serial System Ltd distributes electronic and electrical components in the Asia Pacific region. The company offers electronic components and products to original equipment manufacturers and sub-contractors in various industries, as well as provides value added services, such as turnkey design, warehousing, and logistics support. It also offers design support, technology solutions and services, materials planning, and inventory management services. In addition, the company involves in the assembly, sterilization, and distribution of a medical device called heart-lung pack for use in relation to cardiopulmonary bypass procedures; research, production, marketing, and sale of fertilizers; provision of venue management, LED electronic lighting consultancy, and LED electronic component distribution services; and research, design, and development of integrated circuits and related electronic components. Further, it owns and sells media; and integrates interactive system and techno logy. The company serves consumer, telecommunication, industrial, automotive, medical, metering, security system, computing, lighting, energy, solar, and aerospace market segments in Taiwan, South Korea, Greater China, India, and south east Asia. Serial System Ltd was founded in 1988 and is based in Singapore.

Top 5 Asian Companies To Own For 2014: Blue Nile Inc.(NILE)

Blue Nile, Inc. operates as an online retailer of diamonds and fine jewelry worldwide. Its fine jewelry selection includes diamond, gemstone, platinum, gold, pearl and sterling silver jewelry, and accessories, as well as wedding bands, earrings, necklaces, pendants, bracelets, and watches. Blue Nile, Inc. sells its products through the Web sites bluenile.com, bluenile.ca, and bluenile.co.uk. The company was formerly known as Internet Diamonds, Inc. and changed its name to Blue Nile, Inc. in November 1999. Blue Nile, Inc. was founded in 1999 and is headquartered in Seattle, Washington.

Top Cheap Companies To Invest In Right Now: Changfeng Energy Inc (CFY.V)

Changfeng Energy Inc. operates as a natural gas utility in the People's Republic of China. It designs, constructs, owns, and operates natural gas pipeline network for residential, commercial, and industrial customers in Sanya City, Hainan province, as well as in Xiangdong District, Pingxiang City, Jiangxi Province. The company has 30 years concession rights and 50 years operation rights to operate the natural gas distribution business. Its distribution network consists of 38 kilometers (km) of high-pressure gas pipelines; 26.6 km of high-to-medium pressure pipeline; approximately 122 km of medium to low pressure gas pipelines; and approximately 600 km of branch/customer pipelines, as well as includes 1 primary station, 2 gate processing stations, and 3 gas pressure regulating stations. The company also operates a compressed natural gas refueling retail station in Changsha City, Hunan Province. Changfeng Energy Inc. was founded in 1995 and is headquartered in Toronto, Canad a.

Top 5 Asian Companies To Own For 2014: Archer Ltd (ARCHER)

Archer Ltd, formerly Seawell Limited is a Bermuda-based global oilfield service company. The Company provides drilling services, such as platform drilling, land drilling, modular rings, directional drilling, drill bits, tubular services, drilling and completion fluids, cementing tools, plugs and packers, underbalanced services, rentals and engineering. It specialises also in well services, such as wireline intervention, specialist intervention, frac valves, wireline logging, integrity diagnostics, imaging, production monitoring, coiled tubing, completion services and fishing. As of January 3, 2012, the Company's organizational structure centered on four geographic and strategic areas: North America (NAM), North Sea (NRS), Latin America (LAM) and Emerging Markets & Technologies (EMT). As of December 31, 2010, it was active through a number of subsidiaries, namely Seawell, Allis-Chalmers Energy, Gray Wireline, Rig Inspection Services and TecWel, among others.

Top 5 Asian Companies To Own For 2014: Preformed Line Products Company(PLPC)

Preformed Line Products Company, together with its subsidiaries, designs and manufactures products and systems used in the construction and maintenance of overhead and underground networks for the energy, telecommunication, cable operators, and information industries worldwide. The company offers formed wire and related hardware products to support, protect, terminate, and secure power conductor and communication cables and to control cable dynamics. These products also include hardware for supporting and protecting transmission conductors, spacers, spacer-dampers, stockbridge dampers, corona suppression devices, and various compression fittings for dead-end applications. It also provides protective closures, which include splice cases to protect fixed line communication networks, such as copper cable or fiber optic cable from moisture, environmental hazards, and other potential contaminants. In addition, the company offers data communication cabinets that are used in high -speed data systems to hold and protect electronic equipment; plastic products, including guy markers, tree guards, fiber optic cable markers, and pedestal markers to identify power conductors, communication cables, and guy wires; and other products, such as hardware assemblies, pole line hardware, resale products, underground connectors, solar hardware systems, and urethane products, which are used by energy, renewable energy, communications, cable, and special industries. Its customers include public and private energy utilities, communication companies, cable operators, financial institutions, governmental agencies, contractors and subcontractors, distributors, and value-added resellers. The company markets its products through direct sales force and manufacturing representatives. Preformed Line Products Company was founded in 1947 and is headquartered in Mayfield Village, Ohio.

3 FTSE Shares Hitting New Highs

LONDON -- The FTSE 100 (FTSEINDICES: ^FTSE  ) set a 13-year high of 6,876 points on May 22, and since then it's been lurching from euphoria to panic on a regular basis, with 100-point swings becoming a near-daily occurrence. But at least things are a little quieter today, with the U.K.'s top-tier index up a relaxed 25 points, or 0.38%, to 6,652 as of 8:30 a.m. EDT.

A number of top companies have also been bouncing around their record share prices. Here are three toying with their peaks today.

BP (LSE: BP  ) (NYSE: BP  )
The BP share price has been hovering around a 52-week high of 485 pence all week. It's at 481 pence as I write, having approached 482 pence again around mid-morning. And over the past 12 months, BP shares have gained about 21% as panic from the Gulf of Mexico disaster subsides.

But after such a rise, what's the current valuation like? Well, with current forecasts for the year to December 2013 suggesting a 35% rise in earnings per share to about 54 pence, that puts the shares on a price-to-earnings ratio of less than nine. And though there is still some uncertainty surrounding the final cost of the oil spill cleanup, that looks cheap to me -- especially with a well-covered dividend yield of about 5% being predicted.

Whitbread (LSE: WTB  )
Whitbread shares have been behaving similarly this week, hitting a 52-week intraday high of 2,905 pence on Tuesday before dropping back to 2,853 pence as I write. Over the past 12 months, the price of the hotel, restaurant, and coffee shop operator has soared by more than 50%.

Full-year results to Feb. 28 were impressive, with revenue up 14%, underlying pre-tax profit up 11.4%, and underlying EPS up 12% -- all enabling a 12% boost to the annual dividend. But that rise comes at a price, and the shares are now valued on a P/E of 17 based on forecasts for the current year.

Invensys (LSE: ISYS  )
Engineering software and services specialist Invensys has seen its shares climb more than 80% over the past year to 399 pence today -- and in recent days we've seen regular closes around a record 400 pence mark. The year ended March 31 was described as "transformational" by the company after it disposed of Invensys Rail for £1.7 billion, settled its outstanding pension-scheme issues, and allocated £625 million in cash for return to shareholders.

With the firm now a "focused supplier of industrial software, systems and control equipment," forecasts are looking strong, and there is a near-doubling of EPS being forecast for the year to March 2014. But at this early stage the share valuation is pretty high -- they're on a P/E of 24.

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Is the Oil Business in Brazil About to Blow Up?

Activity in offshore oil drilling has been red hot lately. The U.S. government timed its most recent Gulf of Mexico auction almost perfectly, as it came right on the heels of Anadarko Petroleum's and Chevron's (NYSE: CVX  ) announcements that the two companies had hit major paydirt at a couple of its rigs. The U.S. isn't the only country finding sucess offshore, either. This past week, Brazil completed its first oil and gas lease auction in five years, and apparently the long wait had exploration and production companies drooling. The country pulled in its largest auction revenue ever, about 2.88 billion Brazilian reais ($1.4 billion).

Let's look at who were some of the big winners in the Brazil auction and why offshore in Brazil may be the new hot commodity for oil companies. 

And the winner is ...
It all depends on your definition of "winning: to determine who came out on top of this auction. If your definition is most blocks won, then Petrobras (NYSE: PBR  )  took that prize running away. The company spent $268 million for rights on 35 blocks. The next closest in terms of bids won was OGX, which secured 13 blocks in the entire auction. It shouldn't come as a surprise to anyone that Petrobras was the most active in this auction. Not only is Petrobras Brazil's largest oil company, but it also just recently completed an $11 billion bond issuance, the largest corporate bond sale from an emerging market ever. Some of that money was probably pre-planned for both this auction and the next Brazilian auction to happen in October. This move will further secure Petrobras' position as the largest oil producer in the country. 

There is another way to measure the winner, and that is who won the bid for the most attractive asset. That prize goes to a group led by France's Total (NYSE: TOT  ) , which, with its partners BP and (surprise, surprise) Petrobras, won the bid for a 350-square-mile block at the mouth of the Amazon River. The group's winning bid for the region came in at $172 million. It was the most paid for any Brazilian block since 2006. Magda Chambriard, the head of Brazil's national petroleum agency, has gone on record saying this individual block has the potential to produce up to 150,000 barrels per day. 

Overall, though, Brazil was probably the largest winner in this auction. The country secured bids for 142 of its 289 blocks up for sale. To put that in perspective, the most recent Gulf of Mexico auction secured bids for only 400 for the 7,300 blocks up for sale. Also, according to the Financial Times, many of these blocks sold for premiums much higher than the minimum bid price from the government. This should be a promising sign for the emerging market, as it didn't put up its most lucrative asset -- the pre-salt formation -- up for auction. However, the country will auction off the pre-salt formation for the very first time in October.

Why Bet on Brazil?
Over the past couple of years, companies have been reluctant to work in Brazil, in part because the country has what is known as a local content clause, requiring that any oil and gas work being done in the country needs to contain a certain percentage of Brazilian-made equipment and personnel. That requirement is especially pertinent to oil services companies. Seadrill (NYSE: SDRL  ) has said in previous earnings statements that cost levels in Brazil are higher than most other regions in the world, and the company has been contemplating a spinoff of its Brazilian assets into its own company for well over a year.

With a massive upswing in exploration and production activity expected to happen in the next couple of months, Petrobras has requested that the government ease these regulations. The company has stated that the anticipated growth in oil production will overwhelm the country's ability to produce equipment. 

Another reason some companies have shied away from operating in Brazil was the political fervor caused by Chevron's spill back in November 2011. Estimates for the spill were about 2,600 barrels spilled, and civil lawsuits in the case were asking for as much as $20 billion between Chevron and rig operator Transocean (NYSE: RIG  ) . Just to put these numbers in perspective, the Macondo incident in 2010 spilled about 4.9 million barrels, and the maximum penalty is $17 billion. The Brazilian government also threatened to expel both Chevron and Transocean from operating in the country. Since then, the criminal charges have been dropped and Chevron has resumed drilling after paying a fine.

Despite these issues, though, it appears the juice is worth the squeeze. Brazil's pre-salt formation is estimated to contain as much as 50 billion barrels of technically recoverable oil, and the country's shale deposits represent about 6.4% of the world's shale reserves. With so much oil and gas out there for the taking in the South American giant, Petrobras has stated it wants to triple Brazil offshore production by 2017.

What a Fool believes
Brazil may be one of the hot spots for offshore exploration right now, but there are several challenges that face operating in Brazil. If local equipment production can't keep up with exploration plans, the country should seriously reconsider its local-content mandates. Brazil also needs to prove that it is more worthy of investment than some of the other lucrative offshore plays right now, such as Ghana's Jubilee field and Mozambique's gas fields.

With so many different offshore opportunities, it's definitely more lucrative for investors to pick a way to play all offshore operations rather than picking one as a winner over the other. One way to do that is investing in Seadrill. To help you size up this stock, one of The Motley Fool's top Stock Advisor analysts has written a premium research report on the company, covering everything from its strengths and weaknesses to what to expect going forward. Simply click here now to claim your copy and determine whether Seadrill deserves a place in your portfolio.

Wednesday, May 29, 2013

Time to Buy This Luxury Stock?

Neil Woodford Delivers 22% Return at the Edinburgh Investment Trust

LONDON -- The shares of Edinburgh Investment Trust  (LSE: EDIN  )  dropped 1% to 589 pence during early London trade this morning after its famous fund manager Neil Woodford downplayed this year's incredible stock market rally.

Woodford said he'd become "a bit more cautious," and claimed that the stock market was being "propped up by symptomatic treatment rather than by a cure of the world's economic problems."

Edinburgh Investment trust delivered a 22.3% growth in the fund's net asset value, compared to a 16.8% return from the FTSE All-Share Index.

This outperformance was mostly thanks to Woodford's overweight holdings in the pharmaceuticals sector, where more than a quarter of Edinburgh's assets are invested. The company also benefited from a zero-weighting in the mining sector, which suffered an abysmal year.

Investment manager Neil Woodford added:

[I have] very strong levels of conviction in the attractiveness of the businesses in which the Company is invested.

The overall market is no longer as cheap as it was, but some high quality, dependable growth companies remain significantly undervalued. The Manager remains convinced by their potential to deliver attractive positive returns over the medium/long term, regardless of the economic headwinds we expect to prevail.

With a market value of 1.1 billion pounds, Edinburgh Investment Trust offers a trailing dividend yield of 3.9%.

Neil Woodford -- also head of U.K. Equities at Invesco Perpetual -- has more than 30 years' investment experience and boasts an exceptional track record.

We've detailed Woodford's market-thrashing approach and some of his current high-yielding stock picks in the exclusive Motley Fool report, "8 Shares Held by Britain's Super Investor."

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Japanese Financials Plunge on the Nikkei's Nightmarish Week

It's been a wild ride across the Pacific this week. China's downbeat economic data and concerns over the future of America's quantitative easing sent Asian markets into free fall on Thursday, capped off by the Nikkei's (NIKKEIINDICES: ^NI225  ) 7.3% plunge that day alone. Japan's leading index clawed back some of its losses Friday to end the week down 3.5%, but the loss was a reminder of just how young and fragile the Japanese market's recovery is. Investors have thrived so far under Prime Minister Shinzo Abe's easy-money plan, but one dose of fear this week sent the market into turmoil.

A temporary adjustment to the year's big gains
Much of Thursday's gains were due to investors looking to cash out on Japan's rise as the first hints of doubt arose in the markets. The Nikkei has risen more than 40% year to date, far outpacing other markets around the globe, and it's only natural for a correction to set in after such a swift rise. Japan's government certainly thought so, with Cabinet Office Senior Vice President Yasutoshi Nishimura calling the dip a "temporary adjustment" when speaking to Reuters.

Don't let Thursday's downturn alter your investment thesis significantly. While China's manufacturing data may have disappointed, the weak yen should continue to fuel Japanese exports, even if Chinese growth continues to slow. While investors panicked about America's stimulus potentially slowing this year, there are no signs of Japan's easy-money atmosphere ending: With Abe angling for 2% inflation and the Bank of Japan set out to double the country's money supply, expect stimulus to dominate Japan's near future. The Japanese economy has already responded well, posting 3.5% annualized growth in the first quarter.

Japan still has a long way to go before it reaches steady growth after decades of stagnation. Consumer prices are also rising due to aggressive easing, which could hurt consumption in the long run despite a 5.5% year-over-year increase in spending per household in March. Still, aggressive easing should continue to keep interest rates low and promote investment, which indicates that the best could be yet to come for investors.

The best certainly hasn't come this week in the financial sector, however. Financial stocks have surged in Japan on stimulus optimism, but fears over its future have blasted this sector's best over the last five days. Nomura Holdings (NYSE: NMR  ) , one of the biggest victims of investor fear, fell 11.5% over the course of the week. Nomura has done well lately on the back of easy money and is preparing to increase sales staff in Europe, Asia, and the Americas to boost profitability overseas. While investors have panicked over Thursday's drop and bailed out of Nomura's stock, this is one financial firm looking strong. Like the Nikkei, Nomura has been a victim of its own success this year: With the stock's 42% year-to-date rise, a correction was bound to occur.

Mitsubishi UFJ (NYSE: MTU  ) also plunged in the Japanese financial sector's sell-off, with the firm's stock dropping 12.3% over the week. This firm faced more of a threat from Thursday's action, however: Japan's benchmark bond yield climbed to its highest level in more than a year, and Mitsubishi is the largest lender by assets in the country and holds more than 48 million yen in government bonds. Bond yields are still coming off of record lows, so Mitsubishi's hardly in a dangerous place. The firm's attempts to expand recently may also help boost revenue at a company that posted declining net income in its most recent quarter.

Even with the losses late in the week, not all Japanese firms suffered as badly as the financial sector. While Sony (NYSE: SNE  ) faced a significant sell-off on Thursday and Friday, the stock posted a huge rise on Tuesday in response to competitor Microsoft's unveiling of its Xbox One console. Sentiment was mixed regarding Microsoft's new entertainment device, causing some to wonder whether Sony's competing PlayStation 4 may have a leg up on its rival in the next generation of entertainment consoles. Sony's stock also rose in response to the company's consideration of spinning off its entertainment business to increase profit and focus more on its core electronics business, which has seen sales waver recently.

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Best Cheapest Companies To Invest In Right Now

Don't let today's performance of the Dow Jones Industrial Average (DJINDICES: ^DJI  ) fool you. While the blue-chip index is down slightly, 24 of its 30 components are higher late in the trading session. The broader S&P 500 is also making moderate gains.

The discrepancy owes to the Dow's peculiar construction. Unlike other stock indexes like the S&P 500, which use market capitalization to weight the component parts, the Dow's weighting is based strictly on share price. As a result, the most expensive stock carries the most weight, and the cheapest stock the least.

The reason the Dow is underperforming its broader counterpart, in turn, is that its most heavily weighted component, IBM (NYSE: IBM  ) , is getting absolutely slammed today, down by 8% in afternoon trading. Selling for $190 per share, the technology and business services giant accounts for almost 11% of the Dow's daily deviations.

Best Cheapest Companies To Invest In Right Now: Flextronics International Ltd.(FLEX)

Flextronics International Ltd. provides design and electronics manufacturing services to original equipment manufacturers. The company offers its services to a range of products in the infrastructure, mobile communication devices, computing, consumer digital devices, industrial, semiconductor capital equipment, clean technology, aerospace and defense, white goods, automotive and marine, and medical devices markets. Its services include design and engineering services, such as contract design, joint development manufacturing, and original design and manufacturing services in a range of technical competencies that include system architecture, user interface and industrial design, mechanical engineering, enclosure systems, thermal and tooling design, electronic system design, reliability and failure analysis, and component level development engineering; and systems assembly and manufacturing services, including enclosures, testing, and materials procurement and inventory mana gement services. The company also offers various component product solutions comprising rigid and flexible printed circuit board fabrication, display and touch solutions, optomechatronics, and power supplies; after market supply chain logistics services; and reverse logistics and repair services, such as returns management, exchange programs, complex repair, asset recovery, recycling, and e-waste management services for consumer and midrange products, printers, PDA's, mobile phones, consumer medical devices, notebooks, PC's, set-top boxes, game consoles, and infrastructure products. It has operations in Asia, the Americas, and Europe. Flextronics International Ltd. was founded in 1990 and is headquartered in Singapore.

Best Cheapest Companies To Invest In Right Now: Chiquita Brands International Inc. (CQB)

Chiquita Brands International, Inc., together with its subsidiaries, engages in the distribution and marketing of bananas and fresh produce under the Chiquita and other brand names worldwide. The company operates in three segments: Bananas, Salads and Healthy Snacks, and Other Produce. The Banana segment sources, transports, markets, and distributes bananas to retailers and wholesalers, and chain stores. It also engages in the cultivation and production of bananas. The Salads and Healthy Snacks segment offers value-added salads under the Fresh Express and other labels; and fresh vegetable and fruit ingredients used in foodservice, healthy snacks, and processed fruit ingredient products. This segment also provides fresh-cut products, such as lettuce, tomatoes, spinach, cabbage, and onions to foodservice distributors who resell these products to foodservice operators. It distributes Fresh Express branded products to food retailers, foodservice distributors, and quick-service restaurants; and fresh produce foodservice offerings primarily to third-party distributors for resale principally to quick-service restaurants in the United States. The Other Produce segment engages in sourcing, marketing, and distributing fresh fruits and vegetables other than bananas in Europe and North America. It offers grapes, pineapples, melons, kiwis, tomatoes, and avocados. The company was founded in 1899 and is headquartered in Cincinnati, Ohio.

Best International Stocks To Own Right Now: Axcelis Technologies Inc.(ACLS)

Axcelis Technologies, Inc., together with its subsidiaries, designs, manufactures, and services ion implantation, dry strip, and other processing equipment used in the fabrication of semiconductor chips in the United States, Europe, and the Asia Pacific. It offers a line of high energy, high current, and medium current ion implanters for various applications, such as line of single wafer implanters, known as the Optima platform, comprising the Optima XE, the Optima HD, and the Optima MD. The company also offers dry strip tools, including the Integra RS, which comprises paired-chamber process modules. In addition, it provides aftermarket services and support, such as spare parts, equipment upgrades, maintenance services, and customer training. The company sells its equipment and services through direct sales force, distributors, and manufacturing representatives. Axcelis Technologies was founded in 1995 and is headquartered in Beverly, Massachusetts.

Tuesday, May 28, 2013

1 Studio's Epic Move

The following video is from Tuesday's MarketFoolery podcast, in which host Chris Hill and analysts Jason Moser and Matt Koppenheffer discuss the top business and investing stories of the day.

Universal Pictures' Fast and Furious 6 racked up an estimated $120 million at the box office in the U.S. over Memorial Day weekend. It was the biggest opening weekend in Universal Pictures history. Comcast (NASDAQ: CMCSA  ) is the parent company of Universal Pictures. DreamWorks Animation's (NASDAQ: DWA  ) Epic also did brisk business at the box office. The animated film brought in $42 million in its opening weekend. In this installment of MarketFoolery, our analysts take stock in Fast and Furious and explain the genius behind DreamWorks' epic move.

Dreamworks' tough competition
It's easy to forget that Walt Disney is more than just the House of Mouse. True, Disney amusement parks around the world hosted more than 121 million guests in 2011. But from its vast catalog of characters to its monster collection of media networks, much of Disney's allure for investors lies in its diversity, and The Motley Fool's premium research report lays out the case for investing in Disney today. This report includes the key items investors must watch as well as the opportunities and threats the company faces going forward. So don't miss out -- simply click here now to claim your copy today.

The relevant video segment can be found between 13:57 and 18:14.

For the full video of today's MarketFoolery, click here .

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

Why I Don't Believe the Dillard's Story

In many ways, Dillard's (NYSE: DDS  ) seems like the perfect stock. During the Great Recession, Dillard's stock briefly plunged below $3. Now it trades for more than $90, meaning that shareholders have received a better than 3,000% return in less than five years.

DDS Chart

Dillard's 5-Year Price Chart, data by YCharts.

Dillard's gains have been driven by solid earnings growth, which most analysts expect to continue. However, I think that Dillard's is setting investors up for disappointment. The company's revenue momentum has dissipated, and the department store sector will remain as competitive as ever going forward. Accordingly, I expect Dillard's strong run to end this year.

Sales momentum slows
The primary driver of Dillard's strong stock performance over the past five years has been an improvement in sales. Comparable-store sales rose 3% in 2010, rose by another 4% in 2011, and then rose by 4% again in 2012. This appears to indicate strong momentum, but a closer look at quarterly results reveals a deteriorating trend.

Dillard's posted comparable-store sales growth as high as 5% in third-quarter 2012. As I have argued previously, Dillard's probably benefited from last year's sales meltdown at J.C. Penney (NYSE: JCP  ) , one of the largest mall-based department stores. With shoppers abandoning J.C. Penney in droves last year, Dillard's, Macy's (NYSE: M  ) , and other similar retailers experienced a nice sales tailwind.

However, comparable-store sales growth slowed to just 3% in the fourth quarter last year. This caused a brief correction for Dillard's stock before it began marching higher again. Finally, Dillard's comparable-store sales grew by just 1% in first-quarter 2013. The company outperformed on gross margin, which rose from 38.8% to 39.9%, enabling Dillard's to beat the analyst consensus for profit. However, with gross margin approaching 40%, it will be difficult to drive further profit growth through margin expansion alone. Sales growth will be needed.

The slowdown in sales growth is particularly troubling because Dillard's did not face as much of a negative impact related to weather as other competitors, since most of its stores are located in the South. By contrast, Macy's faced a bigger weather-related impact but continued to post strong growth, with comparable-store sales up 3.8% last quarter. If Macy's continues to gain market share from Dillard's, it will be better able to leverage its fixed costs, making it harder for Dillard's to compete.

Competition may heat up
The big risk for Dillard's going forward is that the tailwind it received from J.C. Penney's struggles could reverse later this year. J.C. Penney experienced a big management shakeup last month, with CEO Ron Johnson being replaced by his predecessor, Mike Ullman. Ullman has made it clear that he aims to lure back previous J.C. Penney shoppers by bringing back coupons and frequent sales, while reintroducing popular private brands that were removed during the chain's recent makeover.

While I am far from optimistic about J.C. Penney's long-term prospects, I do think that Ullman's strategy will win back some of the market share that J.C. Penney lost last year. Other mid-range mall-based department stores like Macy's and Dillard's -- which were the primary beneficiaries last year -- will face stiff competition during the back-to-school and holiday seasons. Since Dillard's is already losing some share to Macy's, it could be hit hard by a J.C. Penney sales revival.

Foolish bottom line
While Dillard's has generated strong earnings growth over the past several years, it has become increasingly reliant on margin improvement and share buybacks recently, rather than organic sales growth. Comparable-store sales growth dropped to just 1% last quarter, and Dillard's could face a worsening competitive environment as J.C. Penney moves aggressively to regain share. With the stock trading for nearly 13 times earnings, I think investors should steer clear of Dillard's for now.

What about the JCP story?
J.C. Penney's stock cratered under Ron Johnson's leadership, but could new CEO Mike Ullman present the opportunity investors have been waiting for? If you're wondering whether J.C. Penney is a buy today, you're invited to claim a copy of The Motley Fool's must-read report on the company. Learn everything you need to know about JCP's turnaround -- or lack thereof. Simply click here now for instant access.

Top 5 Safest Companies To Own In Right Now

It seems that every day a new press release comes out about a big oil or gas discovery, and increasingly these announcements have one thing in common: All the finds are in offshore fields.

As offshore exploration and development increase, oilfield service companies are in high demand. In this video, Fool.com contributor Aimee Duffy talks to Tyler Crowe about how offshore production has affected oilfield service companies, and what investors can expect going forward.

National Oilwell Varco is perhaps the safest investment in the energy sector due to its industry-dominating market share. This company is poised to profit in a big way; its customers are both increasing the number of new drilling rigs and updating aging fleets of offshore rigs. To help determine whether it could be a good fit for your portfolio, you're invited to check out The Motley Fool's premium research report featuring in-depth analysis on whether NOV is a buy today. For instant access to this valuable investor's resource, simply click here now to claim your copy.

Top 5 Safest Companies To Own In Right Now: Under Armour Inc.(UA)

Under Armour, Inc. develops, markets, and distributes performance apparel, footwear, and accessories for men, women, and youth primarily in the United States, Canada, and internationally. It offers products made from moisture-wicking synthetic fabrics designed to regulate body temperature and enhance performance regardless of weather conditions. The company provides its products in three fit types: compression (tight fitting), fitted (athletic cut), and loose (relaxed) extending across the sporting goods, outdoor, and active lifestyle markets. Its footwear offerings comprise football, baseball, lacrosse, softball, and soccer cleats; slides; performance training footwear; and running footwear. The company also provides baseball batting, football, golf, and running gloves, as well as licenses bags, socks, headwear, custom-molded mouth guards, and eyewear that are designed to be used and worn before, during, and after competition. Under Armour sells its products through retai l stores, as well as directly to consumers through its own retail outlets and specialty stores, Website, and catalogs. The company was founded in 1996 and is headquartered in Baltimore, Maryland.

Advisors' Opinion:
  • [By Roger]

    Under Armour (NYSE:UA), a maker and designer of apparel, footwear and accessories that target sports enthusiasts, has more than doubled in one year. But despite the advance, many research firms still have a “strong buy” recommendation on the stock. And S&P recently revised its annual target to $93.

    Technically UA has advanced on a series of stair steps, sometimes called “base moves.”? These are very bullish formations that resemble cups. UA reversed up recently following a signal from our proprietary Collins-Bollinger Reversal (CBR) indicator. If the recent pullback to its 50-day moving average (blue line) holds, then the next move up should break the prior high with a target of $85.

    Traders could take risk positions now with a target of $85 to $90. But be careful and use stop-loss orders to protect against a violent reversal, which could drop prices back to support at $62 where this volatile stock could be bought again.

  • [By Glenn]  

    Current Price: $27.27 12-month target: $37

    I see potential in opportunities for new product adjacencies, and expanding distribution worldwide. Footwear growth will continue to increase. Revenues for these products have increased over 69% in 2009. Adding to this I still see growth in Under Armour’s apparel sales, which are up 8%. Under Armor had yet to even break into the international market, which offers a plethora of new opportunities for this growing brand. I believe sales will rise drastically in 2010 driven by international sales, new women’s clothing line, and expansion within their own footwear line.

Top 5 Safest Companies To Own In Right Now: Fluor Corporation(FLR)

Fluor Corporation, through its subsidiaries, provides engineering, procurement, construction, maintenance, and project management services worldwide. Its Oil & Gas segment offers design, engineering, procurement, construction, and project management services to upstream oil and gas production, downstream refining, chemicals, and petrochemicals industries. This segment also provides consulting services comprising feasibility studies, process assessment, and project finance structuring and studies. The company?s Industrial & Infrastructure segment offers design, engineering, procurement, and construction services to the transportation, wind power, mining and metals, life sciences, manufacturing, commercial and institutional, telecommunications, microelectronics, and healthcare sectors. Its Government segment provides engineering, construction, logistics support, contingency response, management, and operations services to the United States government focusing on the Departme nt of Energy, the Department of Homeland Security, and the Department of Defense. The company?s Global Services segment offers operations and maintenance, small capital project engineering and execution, site equipment and tool services, industrial fleet services, plant turnaround services, temporary staffing services, and supply chain solutions. Its Power segment provides engineering, procurement, construction, program management, start-up and commissioning, and operations and maintenance services to the gas fueled, solid fueled, plant betterment, renewables, nuclear, and power services markets. The company also offers unionized management and construction services in the United States and Canada. Fluor Corporation was founded in 1912 and is headquartered in Irving, Texas.

Best Trucking Stocks To Invest In Right Now: Goldman Sachs Group Inc.(The)

The Goldman Sachs Group, Inc., together with its subsidiaries, provides investment banking, securities, and investment management services to corporations, financial institutions, governments, and high-net-worth individuals worldwide. Its Investment Banking segment offers financial advisory, including advisory assignments with respect to mergers and acquisitions, divestitures, corporate defense, risk management, restructurings, and spin-offs; and underwriting securities, loans and other financial instruments, and derivative transactions. The company?s Institutional Client Services segment provides client execution activities, such as fixed income, currency, and commodities client execution related to making markets in interest rate products, credit products, mortgages, currencies, and commodities; and equities related to making markets in equity products, as well as commissions and fees from executing and clearing institutional client transactions on stock, options, and fu tures exchanges. This segment also engages in the securities services business providing financing, securities lending, and other prime brokerage services to institutional clients, including hedge funds, mutual funds, pension funds, and foundations. Its Investing and Lending segment invests in debt securities, loans, public and private equity securities, real estate, consolidated investment entities, and power generation facilities. This segment also involves in the origination of loans to provide financing to clients. The company?s Investment Management segment provides investment management services and investment products to institutional and individual clients. This segment also offers wealth advisory services, including portfolio management and financial counseling, and brokerage and other transaction services to high-net-worth individuals and families. In addition, it provides global investment research services. The company was founded in 1869 and is headquartered in New York, New York.

Top 5 Safest Companies To Own In Right Now: Petroleo Brasileiro S.A.- Petrobras(PBR)

Petroleo Brasileiro S.A. primarily engages in oil and natural gas exploration and production, refining, trade, and transportation businesses. The company?s Exploration and Production segment involves in the exploration, production, development, and production of oil, liquefied natural gas (LNG), and natural gas in Brazil. This segment supplies its products to the refineries in Brazil, as well as sells surplus petroleum and byproducts in domestic and foreign markets. Its Supply segment engages in the refining, logistics, transportation, and trade of oil and oil products; export of ethanol; and extraction and processing of schist, as well as holds interests in companies of the petrochemical sector in Brazil. The Gas and Energy segment involves in the transportation and trade of natural gas produced in or imported into Brazil; transportation and trade of LNG; and generation and trade of electric power. In addition, the segment has interests in natural gas transportation and d istribution companies; and thermoelectric power stations in Brazil, as well engages in fertilizer business. The Distribution segment distributes oil products, ethanol, and compressed natural gas in Brazil. The International segment involves in the exploration and production of oil and gas, as well as in supplying, gas and energy, and distribution operations in the Americas, Africa, Europe, and Asia. Further, the company involves in biofuel production business. Petroleo Brasileiro was founded in 1953 and is based in Rio de Janeiro, Brazil.

Advisors' Opinion:
  • [By ETF Authority]  

    Current Price: $47.68 12-month target: $80

    PBR plans to invest $174 billion by 2013 to support the largest oil discovery in 30 years. PetroBras has both the backing of the Brazilian government who invested over $30 billion and the Chinese private investors who have pledged over $20 billion to PBR’s discovery. Brazils government proposed to make PBR the only operator of all new offshore pre-salt oil fields yet to be exploited. PetroBras expects oil production to increased from 2.4 million barrels a day to around 5.7 million barrels a day by 2020. PBR has long-term views and have been expanding renewable energy programs such as solar, biofuel, and energy. Biofuel production is expected to increase 18% by 2013.
  • [By Dave Friedman]

    Institutional investors bought 78,663,680 shares and sold 101,125,380 shares, for a net of -22,461,700 shares. This net represents 0.23% of common shares outstanding. The number of shares outstanding is 9,872,826,100. The shares recently traded at $27.61 and the company’s market capitalization is $170,178,700,000.00. About the company: Petroleo Brasileiro S.A. – Petrobras explores for and produces oil and natural gas. The Company refines, markets, and supplies oil products. Petrobras operates oil tankers, distribution pipelines, marine, river and lake terminals, thermal power plants, fertilizer plants, and petrochemical units. The Company operates in South America and elsewhere around the world.

  • [By David Sterman]

    Market Value: $173 billion
    Fall from 52-week high: 38%

    This Brazilian oil giant has lost $100 billion in market value since March 2011. That's a lot of dough. The sell-off is the result of a drop in oil prices, slightly stricter government policies regarding oil and gas royalties, and recent moves to issue more stock and debt to help fund business development. (Though the company now vows to stop issuing any more equity.)

    Indeed, this company has been sucking in cash for quite some time, generating a cumulative $40 billion in free cash flow loss in just the past two years. Pretty soon, though, losses will morph into outsized profits when the company's heavy investments to tap massive offshore oil fields finally bear fruit. In 2007, 2008 and again in 2009, Petrobras discovered three new offshore oil fields, known as Tupi, Jupiter, and yet-to-be-named site off of the state of Sao Paolo.

    It's the Tupi energy play that should pique your interest. It's the largest new find of oil since the Kashagan oil field was discovered in Kazakhstan in 2000 and instantly put Brazil's oil reserve base on par with industry giant Norway. Tally up all of its fields, and Petrobas' engineers estimate the country is sitting on more than 12 billion barrels of oil.

    The recent sell-off has put shares of Petrobras deep into bargain territory, trading at just 7.3 times projected 2011 profits and 1.2 times tangible book value.

The Solar Trade War Is On

The solar trade war has officially begun. Yesterday, China's Xinhau News Agency reported that European officials balked at real negotiations over China's dumping of subsidized product on Europe and are now ready to impose tariffs on solar products coming from China. A negotiated solution may have resulted in Chinese manufacturers raising prices in both the U.S. and Europe, but it now appears that Europe will put onerous tariffs on imports, likely without the loopholes that make U.S. tariffs ineffective.

This is a big hit for the Chinese solar industry and some of the biggest players in solar. Earlier this month, The Wall Street Journal reported that Europe was poised to put a 48.6% tariff on Suntech Power's (NYSE: STP  )  panels, 55.9% on LDK Solar's (NYSE: LDK  ) , and 51.5% on Trina Solar's. Companies who cooperated with the investigation on dumping would be slapped with a 47.6% tariff and those who didn't would be taxed at 67.9%.  

No matter how you slice it, tariffs this large are terrible for Chinese solar companies trying to sell into Europe. This used to account for a majority of sales for most companies, but now China will likely have to fill the gap.

A silver lining
There are a few companies this is good for, something the market isn't recognizing right now. Europe has been a huge drag for both SunPower (NASDAQ: SPWR  ) and First Solar (NASDAQ: FSLR  ) over the past few years and this may be a chance to turn that momentum around.

SunPower generated a gross margin of -32.2% in Europe last quarter, compared to 32.5% in the U.S. and 18.2% in Asia-Pacific, leaving a ton of upside for improvement. First Solar has been all but pushed out of Europe, but a new high-efficiency product from acquisition TetraSun, and higher tariffs on Chinese modules, may bring the company back to competitiveness.

SolarCity (NASDAQ: SCTY  ) won't see a change in what it pays for Chinese modules -- and that's a good thing today. Part of a potential negotiation among the U.S., Europe, and China could have led to China raising prices on all solar modules here at home. That could have resulted in higher costs for SolarCity, something that will be averted for now.

Foolish bottom line
The U.S. put tariffs on solar cells from China last year; sometime in June we're expected to hear about more expansive tariffs in Europe. The bad news is piling up for Chinese solar manufacturers, who are now relying on China for growth in demand. That's a tough position to be in, and it may force the country to pick which companies will survive and which won't.

Tariffs are another reason to stick with high-quality U.S. solar companies. SunPower, First Solar, and SolarCity are at the top of the list and they will all benefit from Europe's pending tariff actions.

The massive opportunity for First Solar
Investors and bystanders alike have been shocked by First Solar's precipitous drop over the past two years. The stakes have never been higher for the company: Is it done for good, or ready for a rebound? If you're looking for continuing updates and guidance on the company whenever news breaks, The Motley Fool has created a brand-new report that details every must know side of this stock. To get started, simply click here now.

Monday, May 27, 2013

Top Integrated Utility Companies To Own For 2014

If you owned stock in Tesla Motors (NASDAQ: TSLA  ) going into this year, you've probably made a pretty penny. In fact, Tesla stock has gained more than 100% in the past month with the stock now trading around $90 a share. However, it could be a bumpy ride going forward. The electric-car maker's disruptive retail strategy is catching heat from state lawmakers and dealership associations that could prevent Tesla from selling its cars in certain states.

Road-blocking the future
North Carolina's Senate Commerce Committee unanimously approved a proposal last week for a law that, if passed, could cripple Tesla's chances of selling its zero-emissions vehicles in the state. The North Carolina Automobile Dealers Association, which supports the bill, argues that Tesla's direct sales model threatens the livelihood of the state's licensed auto dealers, according to Raleigh's News & Observer.

Top Integrated Utility Companies To Own For 2014: World Precision Machinery Ltd (B49.SI)

World Precision Machinery Limited, an investment holding company, engages in the manufacture, supply, and distribution of stamping and complementary machines, and metal parts in the People�s Republic of China. The company�s products include conventional and CNC stamping machines; high performance and high tonnage stamping machines, which are used to produce automotive parts, such as car hoods and doors; and bending, cutting, and CNC punching machines, as well as complementary machines. It serves the automotive, home appliances, railway, and aerospace industries. The company also exports its products to southeast Asia, Europe, South America, and South Africa. World Precision Machinery Limited markets its conventional, high performance, and high tonnage stamping machines under the WORLD brand. The company was formerly known as Bright World Precision Machinery Limited and changed its name to World Precision Machinery Limited in April 2011. The company is based in Danyang Ci ty, China. World Precision Machinery Limited operates as a subsidiary of World Sharehold Limited.

Top Integrated Utility Companies To Own For 2014: Affymax Inc.(AFFY)

Affymax, Inc., a biopharmaceutical company, engages in the development of drugs for the treatment of serious and life-threatening conditions. It develops peginesatide (Hematide), which has completed Phase III clinical trial for the treatment of anemia associated with chronic renal failure. Hematide is a synthetic peptide-based erythropoiesis stimulating agent designed to stimulate production of red blood cells. The company has strategic alliance agreements with Takeda Pharmaceutical Company Limited and Nektar Therapeutics AL, Corporation to develop and commercialize Hematide. Affymax, Inc. was founded in 2001 and is based in Palo Alto, California.

Advisors' Opinion:
  • [By Jonas Elmerraji]

    Nearest Resistance: $2

    Nearest Support: $1.55

    Catalyst: Turnaround Murmurs

    Affymax (AFFY) is seeing surprising trading volume on the Nasdaq today for a third session in a row. The sudden spike in the biopharmaceutical firm surrounds earnings -- not the numbers per se but the comments made by management during the earnings call. Speculators think that those comments could bode well for AFFY's diabetes drug, but the rumors are still very much just that.

    Between hints at bankruptcy and management opting to fire themselves, AFFY has been in freefall in 2013. Even though the stock has more than doubled this week, it's still down 90% on the year. And at this point, headline risk is still far too high to consider this stock a high-probability trade.

    If you've got skin in the game and want to speculate on AFFY's fortunes, that's one thing. Buying because of this week's price action alone would be a mistake.

Top Paper Stocks For 2014: Xstrata(XTA.L)

Xstrata plc operates as a diversified metals and mining company in Switzerland and internationally. It primarily explores for copper, thermal or energy coal, metallurgical or coking coal, nickel, zinc, ferrochrome, platinum, and vanadium; palladium and rhodium; and gold, cobalt, iron, lead, and silver deposits. The company?s operations and projects span in various countries, including Argentina, Australia, Brazil, Canada, Chile, Colombia, Congo Brazzaville, Germany, Ireland, Mauritania, New Caledonia, Norway, Papua New Guinea, Peru, the Philippines, Spain, South Africa, Tanzania, the United Kingdom; and the United States. It also develops, markets, and implements technologies and services used in mining, mineral processing, and metals production. The company was founded in 1926 and is headquartered in Zug, Switzerland.

Top Integrated Utility Companies To Own For 2014: King Solomon Mines Ltd (KSO.AX)

King Solomon Mines Limited, through its subsidiaries, engages in the acquisition, exploration, and development of mineral resource properties in China. It primarily explores for gold, copper, and other metallic deposits. The company�s properties located in the Sonid Zuoqi county, Inner Mongolia include the Marmot copper�molybdenum�gold project that covers an area of 39.7 square kilometers; Sonid North gold project covering an area of 24.8 square kilometers; and Naogaoshandu gold project, which covers an area of 47.2 square kilometers. It also holds interest in Bu Dun Hua porphyry copper�molybdenum project covering an area of 25.1 square kilometers in the Wengniute County, Inner Mongolia. The company was founded in 2003 and is based in Auckland, New Zealand.

Top Integrated Utility Companies To Own For 2014: 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 Integrated Utility Companies To Own For 2014: Synergetics USA Inc.(SURG)

Synergetics USA, Inc., a medical device company, engages in the design, manufacture, and marketing of microsurgical instruments and consumables primarily for ophthalmology and neurosurgery markets in the United States and internationally. The company?s product lines focus upon precision engineered, microsurgical, handheld devices, and the microscopic delivery of laser energy, ultrasound, electrosurgery, aspiration, illumination and irrigation that are delivered in multiple combinations. It offers retinal surgical items, including handheld disposable and reusable forceps and scissors, fiberoptics for illumination and photocoagulation, cannulas, scrapers, and other reusable and disposable surgical devices. The company also provides bipolar electrosurgical generators; lesion generators used for minimally invasive pain treatment; and directional laser probes, as well as offers gauge instrumentation to the vitreoretinal surgical market. It sells its products through direct sale s employees, distributors, and independent sales representatives. The company was founded in 1991 and is headquartered in O?Fallon, Missouri.

The 'Oracle of Omaha' Tweets; Warren Buffett Joins Twitter

warren buffet tweets twitterNati Harnik/AP

Warren Buffett accumulates Twitter followers even faster than he makes money.

The 82-year-old "Oracle of Omaha" joined the service and sent his first tweet on Thursday, picking up more than 45,000 followers in just under 45 minutes.

Buffett said under the handle "@WarrenBuffett":

Warren is in the house.

- Warren Buffett (@WarrenBuffett) May 2, 2013

The handle wasn't officially verified by Twitter, but was confirmed by Fortune magazine, which hosted Buffett for a live webcast Thursday. It was billed as the first social media event for the notoriously technology-averse billionaire.

If followers were dollars, Buffett is having even more success on Twitter than he had with one of his best investments ever, his 2008 stake in Goldman Sachs Group Inc. (GS).

That deal gave him preferred stock that paid dividends at $900 a minute. On Twitter, he has gathered 1,000 followers a minute.

By joining Twitter, the Berkshire Hathaway Inc. (BRK.B) chief executive officer now stands in good mogul company. Other relatively recent converts to the service include News Corp. (NWS) CEO Rupert Murdoch (@RupertMurdoch) and former U.S. President Bill Clinton (@BillClinton).


Google Fiber: Not Coming to a Town Near You

People are excited about Google (NASDAQ: GOOG  ) Fiber. The search giant's foray into gigabit fiber optic broadband service represents an important catalyst for the industry, while also embodying a potentially disruptive threat to incumbent cable companies that are intent on holding America captive through high prices and slow speeds.

The company has also picked up the pace. After the initial rollout in the Kansas City area, Big G subsequently announced expansion into Austin, Texas, and Provo, Utah. Those back-to-back announcements were encouraging signs that perhaps Google had grand ambitions to expand Fiber's reach.

Could Google potentially roll out Fiber nationwide and really put the heat on the cable companies? Don't hold your breath.

Easier said than done
Market researcher IHS doesn't think it's feasible for Google to deploy Fiber nationwide, even though the Austin and Provo announcements were so rapid. Google will always be a "minor player" in the U.S. broadband market, according to IHS. Rolling out on such a scale would simply be too expensive.

The researcher estimates that the total population within all the currently planned cities is about 1.4 million, or about 0.4% of all U.S. households, which is fairly close to my initial estimates before Provo was announced (Provo has a relatively smaller population of an estimated 115,000). Even if Fiber were to dominate the markets that it's available in, Google would have only about 0.2% market share of all U.S. homes.

In comparison, Comcast (NASDAQ: CMCSA  ) has 18.3 million broadband subscribers, AT&T (NYSE: T  ) has 16.4 million, Time Warner Cable (NYSE: TWC  ) boasts 10.9 million, and Verizon (NYSE: VZ  ) enjoys 8.8 million subscribers.

Source: IHS (May 2013).

The broadband industry favors large incumbents, because of high infrastructure costs that inevitably result in an oligopoly market structure. AT&T and Verizon have shifted their focus away from the wired side, content to let Comcast and Time Warner divvy up the business, in order to focus on the high-growth wireless segment. Google has very little chance of making a meaningful dent in these companies' overall subscriber bases unless it's willing to invest billions in infrastructure. IHS analyst Dexter Thillien doesn't think Google will be willing to match how much AT&T and Verizon have plunged into their own fiber networks over the years.

However, Google has some cost advantages. By slowly rolling out in select locations after receiving incentives from local governments, it can offer lower prices than its rivals. The flip side is that competitors can request similar incentives to build their own networks, much in the way AT&T did when it announced "intent" to upgrade its fiber network in Austin if it could score the same incentives.

Google Fiber is very much what Internet service should be, but making it a reality is much easier said than done.

As one of the most dominant Internet companies ever, Google has made a habit of driving strong returns for its shareholders. However, like many other Web companies, it's also struggling to adapt to an increasingly mobile world. Despite gaining an enviable lead with its Android operating system, the market isn't sold. That's why it's more important than ever to understand each piece of Google's sprawling empire. In The Motley Fool's new premium research report on Google, we break down the risks and potential rewards for Google investors. Simply click here now to unlock your copy of this invaluable resource.