John Hussman’s Biggest Fourth-Quarter Buys

John Hussman's primary aim at his Hussman Funds is to invest for long-term returns while managing risk. In 2008, when the S&P lost 37% in its worst year of the decade, Hussman's Strategic Growth Fund (HSGFX) lost just 9%. His average return since inception is 6.52%, compared to 0.55% for the S&P. He has a Ph.D. in economics from Stanford University, a double masters in education and social policy from Northwestern University, and a bachelor's degree in economics. Hussman is also a prolific writer and author of the Hussman Weekly Market Commentary.

His fund's principle investment strategy involves buying common stocks that demonstrate favorable valuations and/or market action. He primarily considers the relationship between the current price and the present value of expected future cash flows, but takes into account other valuation measures, such as P/E and stock price to revenue, analyzed in relation to expected future growth of cash flows to determine underlying value and probable long-term returns.

John Hussman just released his fourth-quarter buys and sells, according to GuruFocus' Real Time Picks. His three biggest new buys are: Vertex Pharmaceuticals Inc. (VRTX), Procter & Gamble Co. (PG) and Marathon Oil Corp. (MRO).

Vertex Pharmaceuticals Inc. (VRTX)

Vertex Pharmaceuticals Inc. discovers, develops and markets small molecule drugs that address major unmet medical needs. Vertex Pharmaceuticals Inc. has a market cap of $7.25 billion; its shares were traded at around $34.74 with and P/S ratio of 50.5. Vertex Pharmaceuticals Inc. had an annual average earnings growth of 13.3% over the past 10 years.

Hussman bought 1.8 million shares of Vertex in the fourth quarter at an average price of $35 per share.

Vertex's shares sunk to their 52-week low of $26.50 in November 2011, off of a 52-week high of $58.57. Meanwhile, the company was working on FDA approval of the first drug to treat the underlying cause of cystic fibrosis, called Kalydeco. The d! rug received approval on January 31 and sent shares up 9%.

The company's revenue has been slipping over the last several years, but saw a major jump in the third quarter of 2011 to $659.2 million, compared to $23.8 million for the third quarter of 2010. The increase was primarily a result of $419.6 million in net revenues from INCIVEK, a treatment for people with chronic genotype 1 hepatitis C, which became available in the third quarter. More than 25,000 Hepatitis C patients have begun treatment with INCIVEK as of Jan. 8, 2012. The company also received $200 in milestone revenues from collaborator Jannsen in the quarter.



In January, it set forth its 2012 key business objectives. Jeffrey Leiden, M.D., Ph.D., who will become Vertex's CEO on Feb. 1, 2012, commented, "Entering 2012, we are focused on becoming a sustainable business with strong revenues from INCIVEK and the planned global launch of KALYDECO for cystic fibrosis. Importantly, we are pursuing opportunities to further improve treatment with our all-oral regimens in development for hepatitis C and efforts to study our cystic fibrosis medicines in a larger group of people with this devastating disease. As these and other pipeline programs advance, we will manage our business with financial discipline and focused investment to ensure the greatest benefit for patients waiting for new treatments and for our shareholders."

Procter & Gamble Co. (PG)

The Procter & Gamble Company manufactures and markets a broad range of consumer products in many countries throughout the world. Procter & Gamble Co. has a market cap of $173.91 billion; its shares were traded at around $63.21 with a P/E ratio of 16.1 and P/S ratio of 2.1. The dividend yield of Procter & Gamble Co. stocks is 3.3%. Procter & Gamble Co. had an annual average earnings growth of 8.9% over the past 10 years. GuruFocus rated Procter & Gamble Co. the business predictability rank of 3.5-star.

Hussman dealt in Procter & Gamble shares at least twice pre! viously. ! He bought 1 million shares in the second quarter of 2008 at an average price of $66.50, and sold all 1 million in the next quarter at an average price of $68. Then, in the second quarter of 2010, he bought 986,000 shares at an average price of $62, and sold 686,000 shares in the fourth quarter of 2010 at an average price of $63 per share, and the remaining 300,000 shares in the first quarter of 2011 at about $63 per share. Most recently, he bought 500,000 shares in the fourth quarter of 2011 at an average price of $64.

Donald Yacktman commented on the rare cheapness of blue-chip stocks the market has proffered recently. "I've been doing this for over forty years, and I can't remember another period of time where I've seen so many high quality, profitable businesses selling at prices relative to the market this cheaply. To give you an illustration, the 30 year treasury today [January 5th, 2012] has a lower yield than many of these companies like Pepsi (PEP) or Johnson & Johnson (JNJ) or Procter & Gamble (PG). That's a very unique period of time," he said in an interview with Consuelo Mack on WealthTrack in January.

Procter & Gamble has achieved 7.2% revenue per share growth in the last 10 years, and book value growth of 21.3%. No doubt the P/E ratio of around 15 in the fourth quarter appealed to Hussman. In the last five years it has been much higher, as high as almost 22 in late 2007, and has fallen to much lower levels since then.

PG pe Interactive Chart

The P/E is even lower now as the stock price has fallen 5.5% year to date.

PG pe Interactive Chart

The stock price has declined on news that the company's second quarter profit dipped to $1.69 billion or $0.57 per share, from last year's $3.33 billion or $1.11 per share. Yet the company's net sales increased 4% to $22.13 billion, from $21.35 billion last year. The company also cut its earnings per share forecast to $3.85 to $4.08, from a previously anticipated $4.15 to $4.33. They lowered ex! pectation! s mainly due to the negative impact of foreign exchange.

Marathon Oil Corp. (MRO)

Marathon Oil Corporation is an energy company engaged in the worldwide exploration, production and transportation of crude oil and natural gas. Marathon Oil Corp. has a market cap of $21.79 billion; its shares were traded at around $30.96 with a P/E ratio of 7.2 and P/S ratio of 0.3. The dividend yield of Marathon Oil Corp. stocks is 1.9%. Marathon Oil Corp. had an annual average earnings growth of 10.5% over the past 10 years.

Marathon Oil become extremely cheap when it dropped 38% on July 1, the day it spun off its downstream business into an independent, publicly traded company called Marathon Petroleum Corporation. Marathon Oil shareholders received one share of MPC common stock for every two shares of Marathon Oil common stock held at the close of business on the record date of June 27, 2011. Marathon Oil is now an independent upstream company.

"As an independent upstream company, we have the capacity to perform at a higher level by focusing on strategic priorities while providing greater transparency for investors. Operationally, we're poised to capitalize on a broad base of opportunities by exhibiting the speed, agility and flexibility of an independent and retaining our proven ability to accomplish large and technologically challenging projects," said Clarence P. Cazalot Jr., Marathon Oil's chairman, president and CEO, in a statement.

Marathon Oil's revenue increased from $9 billion in 2009 to almost $13 billion in 2010, with net income of $1.5 billion in 2009 and $2.6 billion in 2010. Management had also increased cash flow to a record $3.2 billion in 2010.

On November 1, the day it announced its third quarter results, the company closed on the Hilcorp acquisition of 141,000 net acres in the Eagle Ford shale, largely in the core of the play. The company reported that they had already seen better-than-expected performance from the assets. The assets will contribut! e the mos! t to the company's production growth, enabling them to achieve 5% to 7% compound average production growth from 2010 to 2016. Production for 2012 is expected to grow by 5% over 2011.

See more of John Hussman's portfolio here.

Alcoa Posts 2Q Loss, Beats on Sales - Analyst Blog

Alcoa Inc. (AA), the largest U.S. aluminum producer, posted a loss of $119 million or 11 cents per share in the second quarter of 2013 compared with a loss of $2 million or break-even per share in the year-ago quarter. The loss includes $195 million related to restructuring due to plant closures and legal expense.

Excluding one-time special items, Alcoa earned $76 million or 7 cents a share in the quarter, in line with the Zacks Consensus Estimate. However, it was ahead of the year-ago earnings of $61 million or 6 cents per share. Productivity gains and strong performance from Alcoa's Engineered Products business supported the results.

Revenues dropped roughly 2% to $5,849 million from $5,963 million in the year-ago quarter but exceeded the Zacks Consensus Estimate of $5,744 million. The decline in revenues was due to weak aluminum prices, offset by strong demand in the aerospace and automotive end markets. Alcoa continues to see pricing pressure with London Metal Exchange (LME) cash price falling 8% sequentially in the reported quarter.

Alcoa reiterated its global aluminum demand growth expectation of 7% for 2013. Its shares, which are down roughly 9% so far this year, rose to trade above $8 per share after the market closed yesterday, partly reflecting the top line beat.

Segment Review

Alumina - Shipments in the reported quarter were 2.33 million metric tons on production of 4.16 million metric tons. After Tax Operating Income (ATOI) was $64 million, up from $23 million in the year-ago quarter and $58 million in the sequentially preceding quarter. The second quarter results were driven by higher Alumina Price Index-based pricing, a favorable impact from foreign exchange rates, and strong productivity savings, partly offset by lower LME prices.

Primary Metals - Shipments in the second quarter were 0.69 million metric tons versus 0.75 million metric tons a year ago. Production in the quarter was 0.90 million ! metric tons, a decrease of 4.7% from the year-ago quarter. After Tax Operating Loss was $32 million compared with a loss of $3 million in the year-ago quarter and an income of $39 million in the prior quarter. The sequential decline was driven by lower LME prices and higher costs, including the previously announced maintenance costs related to power plant outages in Australia and the U.S.

Global Rolled Products - Shipments in the quarter were 0.50 million metric tons, up 3.7% year over year. Third-party revenues were $1.88 billion, down 1.9% year over year. The segment posted ATOI of $79 million, up 1.3% year over year but down 2.5% sequentially. The sequential decline was due to lower metal prices, largely offset by strong demand from the aerospace, automotive, and packaging businesses.

Engineered Products and Solutions - Shipments in the quarter were 0.058 million metric tons, down 1.7% year over year The segment posted record ATOI of $193 million, up 22.9% year over year and 11.6% sequentially. The increase was due to higher productivity and volumes across all market segments.

Financial Position

Alcoa ended the quarter with cash and cash equivalents of $1.20 billion compared with $1.71 billion a year ago. Alcoa had a debt-to-capital ratio of 34.5% in the reported quarter versus 36.1% a year ago.

Alcoa Reducing Smelting Capacity

Alcoa announced its plans to curtail 460,000 metric tons of smelting due to low metal prices and maintain cost competitiveness. The company also intends to permanently close its Fusina smelter in Italy, representing 44,000 metric tons of smelting capacity. These two closures will reduce the company's global smelting capacity to roughly 4.1 million metric tons with 13%, or 523,000 metric tons, of smelting capacity idled.

Alcoa remains on track to move down the cost curve and curtailed capacities in its upstream business. The curtailments will improve the competitiveness of! the comp! any's Primary Products business.

Alcoa also announced that it will expand mills in Tennessee and Iowa that cater to the auto and aerospace industries. Alcoa completed the expansion of aluminum-lithium capacity at its Kitts Green facility in the UK and also expanded capacity by 30% at the Alcoa Technical Center outside Pittsburgh. Alcoa expects its aluminum-lithium revenues to quadruple over the next six years to nearly $200 million.

Outlook

Alcoa remains optimistic for 2013 and expects global demand for aluminum to increase 7%. The company envisions 9%-10% global growth in the aerospace sector this year. Alcoa's growth forecast for other markets are – automotive (1%-4%), commercial transportation (3%-8%), packaging (1%-2%), building and construction (4%-5%), and industrial gas turbine (3%-5%).

Our Take

Alcoa, a prominent player in the mining industry along with Aluminum Corporation of China Limited (ACH), Atlatsa Resources Corporation (ATL) and BHP Billiton Limited (BHP), is a world leader in production and management of primary aluminum, fabricated aluminum, and alumina. The company is also the world's largest miner of bauxite and refiner of alumina.

Alcoa is divesting underperforming assets through its restructuring program and is aggressively pursuing cost-cutting actions. Healthy demand in the aerospace market is expected to drive results going forward.

However, weakness remains in the commercial building and construction market. In addition, the company continues to contend with pricing pressure.

Alcoa currently retains a short-term Zacks Rank #4 (Sell).

Shanghai ICRD Adopts Agilent Software - Analyst Blog

Agilent Inc. (A) announced that its Model Builder Program (MBP) and Model Quality Assurance (MQA) software have been selected by Shanghai Integrated Circuit Research and Development Center (ICRD) for model extraction and verification at 45-nm process nodes.

Shanghai IC R&D center is a non-profit institute supported by the state and local government of Shanghai to enhance technologies used by the Chinese IC industry.

Agilent's MBP is a comprehensive software solution used by semiconductor foundries and design houses to extract and customize SPICE model libraries. The solution includes powerful, built-in characterization, modeling capabilities as well as an open interface for modeling strategy customization.

The complexity of device modeling has increased considerably over time due to the demand for increased functionality, smaller device sizes and lower power consumption. Therefore, engineers have been using software tools to automate design and analysis right from the modeling stage to the final system verification stage.

Agilent's MBP and MQA software have the required capabilities to provide the highest-quality models. The software provides the requisite measurement, extraction and verification for the modeling of advanced circuit designs. The solution ensures a fully integrated data flow across Agilent's device-modeling platform and establishes standard operating procedures for modeling in team environments.

These will help Shanghai ICRD improve the various aspects of device modeling work (i.e. measurement, extraction and verification) much more efficiently.

Agilent's revenues in the second quarter of 2013 were $1.73 billion, up 3.1% sequentially and flat year over year, just short of the Zacks Consensus Estimate of $1.74 billion. Its Electronic Measurement segment remained the largest contributor and accounted for 44% of its revenues, up 5.3% sequentially but down 13.2% year over year.

Currently, Agilent Technologies has a Zacks Rank! #4 (Sell). Semiconductor stocks that have been performing well and are worth considering include Aspen Tech Inc (AZPN), Rambus Inc. (RMBS) and STMicroelectronics NV (STM), all carrying a Zacks Rank #1 (Strong Buy).

Bear of the Day: Crocs (CROX) - Bear of the Day

Crocs (CROX), Zacks Rank #5 (Strong Sell), manufactures and markets footwear products. The company recently disappointed investors reporting June quarterly profits of 48 cents per share against a Zacks Consensus Earnings Estimate of 64 cents. The 25% negative earnings surprise contributed to a sharp price decline, and has left the stock struggling near a six month low.

Earnings estimates are falling:

Earnings estimates for Crocs have declined sharply over the past thirty days and paint a negative picture. The Zacks Consensus EPS Forecast for 2013 has declined 37 cents to $1.02, while Zacks Consensus EPS Forecast for 2014 has dropped 39 cents to $1.22. The graphic displays the downward trend in analyst revisions.



There have been no estimate increases for either 2013 or 2014 over the past 30 days and seven estimate decreases over the same period.

Gross margins are under pressure:

Gross margin has been eroding in recent quarters. It has declined from 54.6% in the quarter ending September 2012 to 53.7% in the quarter ending June 2013. Gross margins were the lowest since 2010.

A decline in the order book of 6.7% and a weak consumer environment in the U.S. and Europe look to be generating headwinds to the outlook for sales and gross margin.

Valuation:

Valuation is not expensive at 12.4 times forward 12 month earnings, but the PEG ratio is 1.00 and over the 10 year median of 0.90. Concerns over profit growth and margin erosion may justify a depressed looking PE ratio.

Alternatives:

Those looking for exposure to the apparel industry may want to think about Hansbrands (HBI) Zacks Rank #1 (Strong Buy). Unlike Crocs, earnings estimates for Hansbrands are being revised upward. Gross margins are also expanding, and near the top end of the historical range.

When it comes to Crocs, this shoe does not seem to fit into y! our portfolio.

This REIT Just Raised Its Dividend 40% -- Is More To Come?

U.S. companies are sitting on a total of more than $1 trillion in cash, but many are being rather stingy with their dividend payouts while they wait to see how the economic recovery progresses.

 

There is one company, however, whose management was confident enough to boost its dividend payment recently by 40%. This real estate investment trust (REIT) has raised its third-quarter dividend to 28 cents a share, which makes for a 4% annual yield.

With 40 hotel properties and 10,600 rooms in the U.S., this REIT caters to the upscale business travel and leisure travel markets, which have slowly begun to recover from the recession. The REIT looks for markets where there are barriers to entry, making it difficult to build new properties, as well as those where demand is robust, which allows it to charge profitable rates on its hotel rooms.

The REIT gets 90% of its earnings from nine of the U.S.' largest and best-known metro markets, and its hotels are managed by such well-known operators as Kimpton, Westin, Starwood (NYSE: HOT) and Hyatt Hotels (NYSE: H). The REIT I'm talking about is LaSalle Hotel Properties (NYSE: LHO).

	Flickr/Runneralan2004
	After backing out renovation expenses at its Park Central Hotel in New York, LaSalle's RevPAR grew 6.7%.

LaSalle's revenue rose 8.5% in the second quarter from the same period last year, and its revenue for the first half of 2013 rose about 10% from the first six months of last year. The REIT's funds from operations (FFO) per share -- a measure of earnings that accounts for a REIT's real-estate-heavy portfolio -- was also up more than 10% in the second quarter and more than 20% for the first half of the year.

Perhaps more importantly, the REIT -- whose profit margin was a healthy 37% -- saw its revenue per available room (RevPAR) rise 0.9% in the second quarter as hotel occupancies went up, allowing LaSalle to get better rates for its rooms. After backing out renovation expenses at its Park Central Hotel in New York, however, LaSalle's RevPAR grew 6.7%, which may be more indicative of its revenue growth going forward.

Over the past five years, LaSalle has seen its hotel revenue grow from $587 million in 2008 to $862 million, with earnings per share rising nearly ninefold, from 6 cents to 52 cents. The company has forecast FFO of up to $2.23 a share for the year, making for a price-to-earnings ratio of about 11.5.

Risks to Consider: The hotel sector is very competitive, and demand for rooms could cool if the economy falters again. LaSalle has taken on debt on which interest rates could go up, which could cut down on its profits even though it uses hedges to ward off this risk.

Action to Take --> REITs are required to pay as much as 90% of their income to shareholders, so there is a good possibility of higher dividend payments for LaSalle's owners. There is also some upside on the stock as the REIT continues to grow. Because construction activity was down during the recession, fewer hotel rooms coming online as demand is going up, so the REIT is anticipating a favorable environment for the near term.

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The 2013 Broker-Dealers of the Year: Time to Vote

It was 23 years ago that Investment Advisor first asked its independent broker-dealer rep readers to rate their own BDs. While much has changed in the IBD space since 1990, much also remains the same. Recruiting and retaining reps is still the primary business goal of broker-dealers, but the services BDs provide has evolved over time.

We’ve seen the rise of broker-dealer networks, we’ve seen contraction in the number of IBDs and we’ve seen scale as one approach to making a broker-dealer more attractive to reps. However, we’ve also seen resilience in the ranks. Bigger is not always better, and the entrepreneurial spirit and the niche approach to running a successful broker-dealer remains strong.

Investment Advisor's annual Broker-Dealer of the Year survey tracks that evolution, and is the premier way in the industry for IBD reps to make their voices heard on what they want, and what they don’t, from the broker-dealers through which reps do business.

As in the past 22 years, we name winners in four different categories (see who won in 2012), so like-sized BDs (as measured by number of producing reps) compete against their peers. In the September issue of Investment Advisor we reveal the winners of this year's voting, and we bring together the leaders of the four winning broker-dealers in an in-person editorial roundtable that always provides insights—and often some sparks as well—that constitutes the core of our September cover story in print and online at AdvisorOne. (See more about the process for choosing the Broker-Dealers of the Year.) In addition, we poll reps on what they would want from their existing firms, and also ask them which BDs they'd migrate to if they became unhappy with their current BD.)

So we encourage all independent broker-dealer reps to tell us and your peers what’s important to you, and to rate how well your own broker-dealer is meeting your needs.

Voting is open now and will remain open until July 1. Make sure you have your CRD number and your broker-dealer’s at hand when you vote. We look forward to making your voice heard and acknowledging the 2013 Broker-Dealers of the Year.

Vote here for the 2013 Broker-Dealers of the Year.

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View last year’s Broker-Dealers of the Year home page for more on the process, videos with the winning BD presidents and articles on the winners.

After Bitcoin Ponzi Scheme Charge, SEC Warns of Virtual Currency Scams

The Securities and Exchange Commission is warning investors to watch out for scams using virtual currencies, namely Bitcoin.

Just as the SEC on Tuesday charged a Texas man and his company with defrauding investors in a Ponzi scheme involving Bitcoin, the SEC’s Office of Investor Education and Advocacy released an alert warning investors about fraudulent investment schemes that may involve Bitcoin and other virtual currencies.

As the SEC’s alert states, virtual currencies, such as Bitcoin, have recently become popular. These schemes, the agency states, “often promise high returns for getting in on the ground floor of a growing Internet phenomenon.”

These currencies “may be traded on online exchanges for conventional currencies, including the U.S. dollar, or used to purchase goods or services, usually online,” the SEC says.

The “rising use of virtual currencies in the global marketplace may entice fraudsters to lure investors into Ponzi and other schemes in which these currencies are used to facilitate fraudulent, or simply fabricated, investments or transactions,” the agency says. “The fraud may also involve an unregistered offering or trading platform.”

Virtual currencies are attractive to fraudsters, the SEC says, because transactions in virtual currencies have more privacy and less regulatory oversight than transactions in conventional currencies.

In the case of the Texas man, the SEC alleges that Trendon Shavers, who is the founder and operator of Bitcoin Savings and Trust (BTCST), offered and sold Bitcoin-denominated investments through the Internet using the monikers “Pirate” and “pirateat40.”

Shavers raised at least 700,000 Bitcoin in BTCST investments, which amounted to more than $4.5 million based on the average price of Bitcoin in 2011 and 2012 when the investments were offered and sold, the SEC states. Today the value of 700,000 Bitcoin exceeds $60 million.

The SEC alleges that Shavers promised investors up to 7% weekly interest based on BTCST’s Bitcoin market arbitrage activity, which supposedly included selling to individuals who wished to buy Bitcoin “off the radar” in quick fashion or large quantities.

In reality, the SEC says that BTCST was a sham and a Ponzi scheme in which Shavers used Bitcoin from new investors to make purported interest payments and cover investor withdrawals on outstanding BTCST investments.

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Check out Top Portfolio Products: Winklevoss Twins File Bitcoin ETF on ThinkAdvisor.

Raytheon Gets $80.5M JSOW Contract - Analyst Blog

Raytheon Company (RTN) has received a contract worth $80.5 million for the supply of Joint Standoff Weapon (JSOW) C-1's to the U.S. Navy.

The supply of JSOW missiles is expected to begin in the second quarter of 2014. The JSOW C-1 will add a weapon datalink radio and modified seeker software to the existing JSOW C, thereby increasing the anti-surface warfare mission capability of JSOW C.

While maintaining their potential against stationary land targets, these weapons are designed to provide fleet forces with flexibility to engage moving maritime targets.

The JSOW family of precision strike weapons is a joint US Navy and US Air Force program based on a modular design that uses a common airframe, guidance systems and flight control. JSOW uses an autonomous, integrated Global Positioning System and Inertial Measurement System navigation system. JSOW is designed to destroy soft and hardened targets, including armored vehicles and fixed structures. The missile has a maximum range of 70 km that ensures delivery outside the lethal range of most enemy air defenses.

In June this year, Raytheon won a U.S. Navy contract for AGM-154C-1 Joint Standoff Weapons ("JSOW"). The contract was for 200 units of Full Rate Production Lot 9 of JSOW.

Despite the adverse effects of sequestration on the defense budget, Raytheon along with other defense primes like Lockheed Martin Corp. (LMT) and Northrop Grumman Corp. (NOC) has received a steady flow of contracts. Recently, Raytheon won a delivery contract, worth $9.6 million, from the U.S. Department of Defense (DoD). The contract, a part of the earlier issued Basic Ordering Agreement, deals with restoration of the H-60 Multi-Spectral Targeting System forward looking infrared turrets.

Earlier, the company won a major part of the $375 million DoD contracts issued on Jul 8, 2013. The company has been awarded a cost-plus-incentive-fee contract with a value of $279.4 million for the development of a new electronic jammer for the U.S.! Navy. This contract for the technology development phase of the Next Generation Jammer will replace the ALQ-99 tactical jamming system used on the U.S. Navy EA-18G Growler electronic-attack aircraft manufactured by The Boeing Company (BA).

Despite the declining trend in U.S. defense spending, Raytheon is one of the best-positioned companies among the large-cap defense players due to its non-platform-centric focus. Going forward, we expect the company to continue to remain well positioned based on its realigned segments, international exposure, strong order bookings and order backlog, cash deployment strategy, improving balance sheet, growing cash flow and cost reduction initiatives.

Despite these positives, we remain concerned about the future growth of the U.S. defense budget, the fate of high-cost programs, risks related to key project executions and order cancellations. The company presently retains a Zacks Rank #3 (Hold).

Top 10 Oil Companies To Own For 2014

Things have gone from very good to very bad for U.S. oil refiners.

 

Refiners take crude oil and turn it into products like gasoline, diesel, and fuel oil. If they can buy oil cheap and sell those products at high prices, they make a lot of money.

 

Over the last two years, they've made LOTS of money. Giant refiners Valero and Marathon saw revenues rise 117% and 89%, respectively, from 2009 to 2012.

 

But the great conditions that led to great profits for refiners are gone. And these stocks have more room to fall.

 

For the last three years, the price of U.S. crude oil (called West Texas Intermediate or WTI) cost less than the European crude oil (called Brent).

Top 10 Oil Companies To Own For 2014: Midstates Petroleum Company Inc (MPO)

Midstates Petroleum Company, Inc. is an independent exploration and production company. The Company�� areas of operation include Pine Prairie, South Bearhead Creek/Oretta, West Gordon and North Cowards Gully. Its Upper Gulf Coast Tertiary trend extends from south Texas to Mississippi across its operating areas in central Louisiana. As of December 31, 2011, it had accumulated approximately 77,100 net acres in the trend. As of December 31, 2011, its development operations are focused in the Wilcox interval of the trend. The Company�� business is conducted through Midstates Petroleum Company LLC, as a direct, wholly owned subsidiary. In September 2012, the Company and its subsidiary acquired all of Eagle Energy Production, LLC�� producing properties as well as their developed and undeveloped acreage primarily in the Mississippian Lime oil play in Oklahoma and Kansas.

As of December 31, 2011, it drilled 57 gross wells in the trend, approximately 93% of. During the year ended December 31, 2011, its average daily production were 7,499 barrels of oil equivalent per day. As of December 31, 2011, it had a total of 974 gross vertical drilling locations, including 115 related to acreage under option, in the trend. As of December 31, 2011, the Company�� properties included approximately 92 gross active producing wells, 95% of, which it operate, and in which it held an average working interest of approximately 99% across its 77,100 net acre leasehold. During March 31, 2012, the Company continued its drilling program, spudding 14 wells, of which nine are producing, three are being drilled and two are waiting to be completed. As of December 331, 2011, it averaged daily production is approximately 9,000 barrels of oil equivalent per day.

Pine Prairie

The Company�� properties in the Pine Prairie area represented 46% of its total proved reserves as of December 31, 2011. During 2011, the Company�� average production from these properties was 3,793 net barrels of oil equ! ivalent per day, consisting of 2,143 barrels of oil, 565 barrels of natural gas liquidations (NGLs) and 6,508 million cubic feet of natural gas per day. As of December 31, 2011, it held an average working interest and average net revenue interest of 92.2% and 68.9%, respectively, on its acreage in Pine Prairie area. The Company has an additional 194 identified drilling locations in this area based primarily on 10-acre spacing.

South Bearhead Creek/Oretta

The Company�� properties in the South Bearhead Creek/Oretta area represented 20.3% of its total proved reserves as of December 31, 2011. During 2011, the Company�� average production from these properties was 4,367 net barrels of oil equivalent per day, consisting of 2,196 barrels of oil, 438 barrels of NGLs and 10,396 million cubic feet of natural gas per day. During 2011, these wells produced at an average daily rate of 2,413 net barrels of oil equivalent per day. As of December 31, 2011, it held an average working interest and average net revenue interest of 100% and 78.5%, respectively, on its acreage in South Bearhead Creek/Oretta area. The Company has an additional 43 identified drilling locations in this area based primarily on 40-acre spacing.

West Gordon

The Company�� properties in the West Gordon area represented 21% of its total proved reserves as of December 31, 2011. During 2011, the Company�� average production from these properties was 1,002 net barrels of oil equivalent per day, consisting of 617 barrels of oil, 68 barrels of NGLs and 1,901 million cubic feet of natural gas per day. As of December 31, 2011, it held an average working interest and average net revenue interest of 95.9% and 71.2%, respectively, on its acreage in West Gordon area. The Company has an additional 74 identified drilling locations in this area based primarily on 40-acre spacing.

North Cowards Gully

The Company�� properties in the North Cowards Gully area represented 11.5% of ! its total! proved reserves as of December 31, 2011. During 2011, the Company�� average production from these properties was 149 net barrels of oil equivalent per day consisting of 103 barrels of oil, 11 barrels of NGLs, and 211 million cubic feet of natural gas per day. As of December 31, 2011, it held an average working interest and average net revenue interest of 94.3% and 71.2%, respectively, on its acreage in North Cowards Gully area. The Company has an additional 95 identified drilling locations in this area based primarily on 40-acre spacing.

Top 10 Oil Companies To Own For 2014: Halcon Resources Corp (HK)

Halcon Resources Corporation (Halcon Resources), incorporated on February 5, 2004, is an independent energy company focused on the acquisition, production, exploration and development of onshore liquids-rich oil and natural gas assets in the United States. The Company has oil and natural gas reserves located primarily in Texas, North Dakota, Louisiana, Oklahoma and Montana. On August 1, 2012, the Company acquired GeoResources by merger. On December 6, 2012, the Company completed the acquisition of entities owning approximately 81,000 net acres prospective for the Bakken / Three Forks formations primarily located in Williams, Mountrail, McKenzie and Dunn Counties, North Dakota (the Williston Basin Assets), from Petro-Hunt, L.L.C. and Pillar Energy, LLC (the Petro-Hunt parties). As of December 31, 2012, the Company has working interests in approximately 128,000 net acres prospective for the Bakken / Three Forks formations in North Dakota and Montana.

The Company�� Woodbine / Eagle Ford acreage is prospective for the Woodbine, Eagle Ford and other formations, with targeted depths ranging anywhere from 7,000 feet to 10,400 feet. As of December 31, 2012, The Company has approximately 198,000 net acres leased or under contract primarily in Leon, Madison, Grimes, Brazos, and Polk Counties, Texas. The Company is the operator and has a 100% working interest in more than 12,000 net acres in Wichita and Wilbarger Counties, Texas that it is actively water flooding in shallow Cisco aged Pennsylvania sandstone and limestone reservoirs. As of December 31, 2012, the Company produced 484 million barrels of oil equivalent from approximately 700 active producing wells and approximately 230 active water injection wells.

The Company�� position in the La Copita Field covers 3,720 gross acres and 2,829 net acres in Starr County, Texas. As of December 31, 2012, the Company�� average net daily production was 623 barrels of oil equivalent per day. The Company operates 100% of this production a! nd its working interest ranges from 75% to 100%. The Company has various other oil and natural gas properties with varying working interests located across the United States, including the Austin Chalk Trend and Eagle Ford Shale in Texas, the Fitts-Allen Fields in Central Oklahoma, and various other areas across South Louisiana, Montana, North Dakota, New Mexico, and West Virginia.

Advisors' Opinion:

• [By Roberto Pedone]

  One energy player that insiders are active in here is Halcon Resources (HK), which is engaged in the acquisition, development, exploitation, exploration and production of oil and natural gas properties. Insiders are buying this stock into notable weakness, since shares are off by 22% so far in 2013.

  Halcon Resources has a market cap of $1.99 billion and an enterprise value of $4.71 billion. This stock trades at a premium valuation, with a trailing price-to-earnings of 112.50 and a forward price-to-earnings of 12.56. Its estimated growth rate for this year is 900%, and for next year it's pegged at 79.2%. This is not a cash-rich company, since the total cash position on its balance sheet is $3.06 million and its total debt is $2.71 billion.

  A director just bought 200,000 shares, or about $1.02 million worth of stock, at $5.10 per share. A beneficial owner also just bought 5.2 million shares, or about $26.44 million worth of stock, at $5.10 per share.

  From a technical perspective, HK is currently trending below both its 50-day and 200-day moving averages, which is bearish. This stock has been downtrending badly for the last six months, with shares moving lower from its high of $8.12 to its recent low of $4.92 a share. During that downtrend, shares of HK have been making mostly lower highs and lower lows, which is bearish technical price action. That said, this stock has started to find some buying interest off some previous support areas at $4.92 to $5.10 a share.

  If you're bullish on HK, then look for long-biased trades as long as this stock is trending above some key near-term support levels at $5.10 to $4.92 and then once it breaks out back above its 50-day at $5.67 a share with high volume. Look for a sustained move or close above that level with volume that hits near or above its three-month average volume of 5.14 million shares. If that breakout triggers soon, then HK will set up to re-test or possibly take out its next major overhead resistance levels at $6.11 to $6.54 a share. Any high-volume move above those levels will then give HK a chance to tag $6.75 to $6.84 a share.

Best Blue Chip Companies To Buy For 2014: Halliburton Company(HAL)

Halliburton Company provides various products and services to the energy industry for the exploration, development, and production of oil and natural gas worldwide. It operates in two segments, Completion and Production, and Drilling and Evaluation. The Completion and Production segment offers production enhancement services, completion tools and services, cementing services, and Boots & Coots. Its production enhancement services include stimulation and sand control services; completion tools and services comprise subsurface safety valves and flow control equipment, surface safety systems, packers and specialty completion equipment, intelligent completion systems, expandable liner hanger systems, sand control systems, well servicing tools, and reservoir performance services; cementing services consist of bonding the well and well casing, while isolating fluid zones and maximizing wellbore stability, and casing equipment; and Boots & Coots include well intervention services , pressure control, equipment rental tools and services, and pipeline and process services. The Drilling and Evaluation segment provides field and reservoir modeling, drilling, evaluation, and wellbore placement solutions that enable customers to model, measure, and optimize their well construction activities. Its services comprise fluid services, drilling services, drill bits, wireline and perforating services, testing and subsea services, software and asset solutions, and integrated project management and consulting services. The company serves independent, integrated, and national oil companies. Halliburton Company was founded in 1919 and is headquartered in Houston, Texas.

Advisors' Opinion:

• [By Nathan_Slaughter]

  Halliburton is ranked among the top oilfield services companies in America. It has global operations aiding oil companies in the exploration and drilling of wells. Ever since the introduction of the new horizontal drilling technology, Halliburton has been able to boost its productive capacity exponentially from 500 billion barrels about 5 years ago to nearly 4.5 trillion as of date. Revenue through overseas operations has increased nearly 20% since the third quarter of 2011. Also, the company is expected to expand its field of operations significantly in the coming years seeing that power-houses China and Argentina seek assistance from Halliburton for the development of their national oil and gas fields. The current market capitalization of the company is massive at a staggering $30 billion with total recorded revenue of $25 billion in 2011. At a current trading price of around $36, Halliburton has a price-to -earnings ratio of around 11 and earnings per share of almost $3. A positive dividend yield of nearly 1% has helped the company earn the trust of loyal investors. In my view, the company will continue to grow at a steady pace, opening new frontiers for investment such as the massive market of China. Therefore, I rank Halliburton among the safer stock investments for 2012.

Top 10 Oil Companies To Own For 2014: ONEOK Partners L.P.(OKS)

ONEOK Partners, L.P. engages in the gathering, processing, storage, and transportation of natural gas in the United States. The company?s Natural Gas Gathering and Processing segment gathers and processes natural gas produced from crude oil and natural gas wells located in the Mid-Continent region; and gathers natural gas in the Williston Basin, which spans portions of Montana and North Dakota, and the Powder River Basin of Wyoming. Its Natural Gas Pipelines segment primarily owns and operates regulated natural gas transmission pipelines, natural gas storage facilities, and natural gas gathering systems for non-processed gas. It also provides interstate natural gas transportation and storage services. This segment?s interstate natural gas pipeline assets transport natural gas through FERC-regulated interstate natural gas pipelines in North Dakota, Minnesota, Wisconsin, Illinois, Indiana, Kentucky, Tennessee, Oklahoma, Texas, and New Mexico. In addition, it transports intra state natural gas through its assets in Oklahoma; and owns underground natural gas storage facilities in Oklahoma, Kansas, and Texas. Its Natural Gas Liquids segment gathers, fractionates, and treats natural gas liquids (NGLs), as well as stores NGL products primarily in Oklahoma, Kansas, and Texas. This segment owns FERC-regulated natural gas liquids gathering and distribution pipelines in Oklahoma, Kansas, Texas, Wyoming, and Colorado; terminal and storage facilities in Missouri, Nebraska, Iowa, and Illinois; and FERC-regulated natural gas liquids distribution and refined petroleum products pipelines in Kansas, Missouri, Nebraska, Iowa, Illinois, and Indiana that connect its Mid-Continent assets with Midwest markets, including Chicago, Illinois. ONEOK Partners GP serves as the general partner of the company. The company was formerly known as Northern Border Partners, L.P. and changed its name to ONEOK Partners, L.P. in May 2006. The company was founded in 1993 and is based in Tulsa, Oklahoma.

Advisors' Opinion:

• [By Louis Navellier]

  Oneok Partners (NYSE:OKS) is known for gathering, processing, storage and transportation of natural gas in the U.S. OKS has posted more modest gains than others on this list but still is up 10% year to date.

Top 10 Oil Companies To Own For 2014: Vecta Energy Corp (VER)

Vecta Energy Corporation is engaged in the exploration for, and the acquisition, development and production of oil, natural gas and natural gas liquids. The Company has non-operated interests in three areas: the foothills of Alberta, northeast BC and the Brewster area in central Alberta. The Company has interest in the Brewster area of west central Alberta (in townships 42, 43 and 44; range 12-13, W5). These lands are prospective in the Belly River formation at depths of 1,500 to 2,000 meters, as well as deeper zones including Nordegg, Rock Creek, Ellerslie, Ostracod, Falher and Notikewin. A total of six wells have been drilled on Company acreage. The 102/01-26-043-13 W5 well is producing 350 to 400 thousand cubic feet of natural gas with liquids. The 15-11-043-13 W5 well is producing of 350 to 400 thousand cubic feet of natural gas with liquids.

Top 10 Oil Companies To Own For 2014: Markwest Energy Partners LP (MWE)

MarkWest Energy Partners, L.P. (MarkWest Energy) is a master limited partnership engaged in the gathering, processing and transportation of natural gas; the transportation, fractionation, storage and marketing of natural gas liquids (NGLs), and the gathering and transportation of crude oil. It provides services in the midstream sector of the natural gas industry. The Company also provides processing and fractionation services to crude oil refineries in the Corpus Christi, Texas area through its Javelina gas processing and fractionation facility. As of December 31, 2011, the Company operated in four segments: Southwest, Northeast, Liberty and Gulf Coast. Effective December 31, 2011, the Company acquired the remaining 49% interest in MarkWest Liberty Midstream. On February 1, 2011, the Company acquired Langley processing plant.

Southwest Segment

The Company owns a system in East Texas that consists of natural gas gathering pipelines, centralized compressor stations, a natural gas processing facility and an NGL pipeline. The East Texas system is located in Panola, Harrison and Rusk Counties and services the Carthage Field. Producing formations in Panola County consist of the Cotton Valley, Pettit, Travis Peak and Haynesville formations. During the year ended December 31, 2011, approximately 77% of its natural gas volumes in the East Texas System result from contracts with six producers. The Company sells substantially all of the purchased and retained NGLs produced at its East Texas processing facility to Targa Resources Partners, L.P. (Targa) under a long-term contract. Such sales represent approximately 19.4% of its consolidated revenue in 2011.

The Company owns a natural gas gathering system in the Woodford Shale play in the Arkoma Basin of southeast Oklahoma. The liquids-rich natural gas gathered in the Woodford system is processed through Centrahoma Processing LLC (Centrahoma), its equity investment, or other third-party processors. In addition, it owns the Foss Lake! natural gas gathering system and the Western Oklahoma natural gas processing complex, all located in Roger Mills, Beckham, Custer and Ellis Counties of western Oklahoma. The gathering portion consists of a pipeline system that is connected to natural gas wells and associated compression facilities. The Company also owns a gathering system in the Granite Wash formation in Wheeler County in the Texas panhandle that is connected to its Western Oklahoma processing complex. The Company completed the expansion of the Western Oklahoma natural gas processing plant in October 2011.

Approximately 70% of its Oklahoma volumes result from contracts with three producers in 2011. The Company sells substantially all of the NGLs produced in the Western Oklahoma processing complex to ONEOK Hydrocarbon L.P. (ONEOK) under a long-term contract. Such sales represent approximately 13.2% of its consolidated revenue in 2011. The Company owns a number of natural gas gathering systems located in Texas, Louisiana, Mississippi and New Mexico, including the Appleby gathering system in Nacogdoches County, Texas. It gathers a portion of the gas produced from fields adjacent to its gathering systems, including from wells targeting the Haynesville Shale. In addition, it owns four lateral pipelines in Texas and New Mexico.

Northeast Segment

The Company�� Northeast segment assets include the Kenova, Boldman, Cobb, Kermit and Langley natural gas processing plants, an NGL pipeline and the Siloam NGL fractionation plant. In addition, it has two caverns for storing propane at its Siloam facility and additional propane storage capacity under a long-term firm-capacity agreement with a third party. The Northeast segment operations include fractionation and marketing services on behalf of the Liberty segment. The Company owns and operates a crude oil pipeline in Michigan (Michigan Crude Pipeline) providing transportation service for three shippers.

Liberty Segment

The Company pr! ovides na! tural gas midstream services in southwestern Pennsylvania and northern West Virginia through MarkWest Liberty Midstream. It is a processor of natural gas in the Marcellus Shale, with gathering, processing, fractionation, storage and marketing operations.

Utica Segment

Effective January 1, 2012, the Company and The Energy and Minerals Group (EMG) formed MarkWest Utica EMG, a joint venture focused on the development of natural gas processing and NGL fractionation, transportation and marketing infrastructure to serve producers' drilling programs in the Utica shale in eastern Ohio. During 2011, the Utica Segment did not have any operations.

Gulf Coast Segment

The Company owns and operates the Javelina processing facility, a natural gas processing facility in Corpus Christi, Texas that treats and processes off-gas from six local refineries operated by three different refinery customers. As of December 31, 2011, the Company owned a 40% interest in Centrahoma Processing LLC (Centrahoma), a joint venture with Cardinal Midstream, LLC (Cardinal). Centrahoma owns certain processing plants in the Arkoma Basin and Cardinal operates an additional processing plant that is not owned by Centrahoma but is located adjacent to and operates in conjunction with the Centrahoma plants.

Top 10 Oil Companies To Own For 2014: Whiting Petroleum Corporation(WLL)

Whiting Petroleum Corporation engages in the acquisition, development, exploitation, exploration, and production of oil and gas primarily in the Permian Basin, Rocky Mountains, Mid-Continent, Gulf Coast, and Michigan regions of the United States. As of December 31, 2010, its estimated proved reserves were 304.9 million barrels equivalent of oil; and had interests in 9,698 gross productive wells covering approximately 1,115,000 gross developed acres. The company sells its oil and gas to end users, marketers, and other purchasers. Whiting Petroleum Corporation was founded in 1983 and is Denver, Colorado.

Advisors' Opinion:

• [By Gordon Wilcox]

  Whiting Petroleum (NYSE: WLL) Two months ago, takeover rumors surrounding Whiting swirled after it was reported the company hired Bank of America to explore a possible sale. Those rumors gained steam again last week and it is easy to see why.

  Not only does Whiting control over 700,000 Bakken Shale acres, making it the second-largest producer there, it is attractively valued. The shares currently trade for more than 35 percent below the average analyst price target and well below the five-year average price-to-earnings ratio.

  Adding to the takeover case are the facts that the bulk of Whiting’s reserves are oil, not gas, and that the company has increased production guidance multiple times this year.

Top 10 Oil Companies To Own For 2014: Magellan Midstream Partners L.P.(MMP)

Magellan Midstream Partners, L.P., together with its subsidiaries, engages in the transportation, storage, and distribution of refined petroleum products and crude oil in the United States. Its pipeline system transports petroleum products and liquefied petroleum gases from the Gulf Coast refining region of Texas through the Midwest to Colorado, North Dakota, Minnesota, Wisconsin, and Illinois. The company owns and operates marine terminals, which store and distribute refined petroleum products, blendstocks, crude oils, heavy oils, and feedstocks, as well as inland terminals that consist of storage tanks connected to third-party interstate pipeline systems to deliver refined petroleum products. Its ammonia pipeline system transports ammonia from production facilities in Texas and Oklahoma to terminals in the Midwest. The company also stores, blends, and distributes biofuels, such as ethanol and biodiesel. As of March 31, 2011, it operated approximately 9, 600 miles of petr oleum products pipeline system and 51 terminals; 6 marine petroleum terminals located along the United States Gulf and East Coasts; a crude oil storage in Cushing, Oklahoma; 27 petroleum products inland terminals located principally in the southeastern United States; and a 1,100-mile ammonia pipeline system and 6 associated terminals. The company also provides ancillary services, such as heating, blending, and mixing of stored petroleum products and additive injection services. Its customers comprise independent and integrated oil companies, wholesalers, retailers, railroads, airlines, and regional farm co-operatives. The company serves various markets, including retail gasoline stations, truck stops, farm co-operatives, railroad fueling depots, and military and commercial jet fuel users. Magellan GP, LLC serves as the general partner of the company. The company was founded in 2000 and is based in Tulsa, Oklahoma.

Advisors' Opinion:

• [By Louis Navellier]

  Magellan Midstream Partners (NYSE:MMP) is involved with the transportation, storage and distribution of refined petroleum products. MMP is another oil stock that has gained nearly 20% since January.

Top 10 Oil Companies To Own For 2014: Southern Union Company(SUG)

Southern Union Company, together with its subsidiaries, engages in the gathering, processing, transportation, storage, and distribution of natural gas in the United States. It operates in three segments: Transportation and Storage, Gathering and Processing, and Distribution. The Transportation and Storage segment engages in the interstate transportation and storage of natural gas in the Midwest and from the Gulf Coast to Florida. It also provides liquefied natural gas (LNG) terminalling and regasification services. The Gathering and Processing segment involves in gathering, treating, processing, and redelivering natural gas and natural gas liquids (NGLs) in Texas and New Mexico. It operates a network of approximately 5,500 miles of natural gas and NGL pipelines, 4 cryogenic processing plants with a combined capacity of 415 MMcf/d, and 5 natural gas treating plants with a combined capacity of 585 MMcf/d. The Distribution segment engages in the local distribution of natural gas in Missouri and Massachusetts. This segment serves residential, commercial, and industrial customers through local distribution systems. The company was founded in 1932 and is based in Houston, Texas.

Advisors' Opinion:

• [By Louis Navellier]

  Southern Union Co. (NYSE:SUG) also is involved with the gathering, processing, transportation, storage and distribution of natural gas in the U.S. Southern Union stock has jumped 74% year to date.

Top 10 Oil Companies To Own For 2014: Enbridge Inc(ENB)

Enbridge Inc. engages in the transportation and distribution of crude oil and natural gas primarily in Canada and the United States. Its Liquids Pipelines segment operates common carrier and contract crude oil, natural gas liquids (NGLs), and refined products pipelines and terminals. The company?s Gas Distribution segment distributes natural gas to residential, commercial, and industrial customers primarily in central and eastern Ontario, northern New York State, Quebec, and New Brunswick. Enbridge?s Gas Pipelines, Processing and Energy Services segment invests in natural gas pipelines, processing and green energy projects, and commodity marketing businesses, as well as performs commodity storage, transport, and supply management services. Its Sponsored Investments segment transports crude oil and other liquid hydrocarbons through common carrier and feeder pipelines, as well as transports, gathers, processes, and markets natural gas and NGLs; operates a crude oil and liqui ds pipeline and gathering system; and owns a 50% interest in the Canadian portion of Alliance Pipeline and partial interests in various green energy investments. The company was formerly known as IPL Energy Inc. and changed its name to Enbridge Inc. in October 1998. Enbridge Inc. was founded in 1949 and is headquartered in Calgary, Canada.

Advisors' Opinion:

• [By Louis Navellier]

  Enbridge Inc. (NYSE:ENB) is an energy transportation and distribution company separated into six segments: Liquids Pipelines, Gas Distribution, Gas Pipelines, Processing and Energy Services, Sponsored Investments and Corporate. Enbridge stock has gained 13% in 2011.

Comcast's NBCUniversal Offers TV App - Analyst Blog

Owned by Comcast Corporation (CMCSA), NBCUniversal's USA Network is offering original programs like "Royal Pains" and "Burn Notice" on smartphones and tablets thorough new TV apps.

The subscribers can view these shows just by downloading the free USA Now app on their iPads and other mobile devices. Apart from TV shows, the users can play games linked with the show and comment on Facebook and Twitter. The customer will be eligible to use the new app for a year.

Apart from Comcast's customers, the new app can also be accessed by the subscribers of Time Warner Cable Inc. (TWC), Cablevision Systems Corp. (CVC), Mediacom Communications Corp., Suddenlink Communications, DirecTV (DTV) and Dish Network Corp. Moreover, Verizon Wireless's FiOS TV can also use the app.

However, the new app will not be ad free as NBCUniversal is seeking sponsorship for the app. After the launch of the USA Now app, the company is looking forward to offering Sify network and Telemundo channel apps.

Higher adoption of smartphones and tablets and increased deployment of 4GLTE technology supporting faster data speed and better streaming have completely altered the concept of TV viewing. There are multiple devices on which the customers can watch their favorite shows and connect to social networks like Facebook and Twitter.

So, to address such issues as well as to promote the concept of Xfinity TV –, an on-demand, Web-based service, – Comcast is gradually launching these TV apps. Moreover, it will also help the company to safeguard its position against low-cost video streaming companies like Hulu and Netflix.

Currently, Comcast Corporation carries a Zacks Rank #3 (Hold).

Alcoa in Numbers

This is part three of my coverage on Alcoa. The previous two parts were Alcoa and its CEO and Alcoa's business during the crisis years (2008-2010).

This article will tell the story of Alcoa in numbers. We will look at the business performance, profitability and the balance sheet.

Business performance

Item (in $ million)	2008	2009	2010	2011
Sales	26,901	18,439	21,013	24,951
Gross margin (%)	17.6	8.3	18.3	17.9
OCF	1,234	1,365	2,261	2,193
Cap-Ex	-3,413	-1,622	-1,015	-1,287
FCF	-2,179	-257	1,246	906
Working cap	871	1,608	1,633	1,700
Shares	818	935	1,025	1,161

The improvements are visible across all figures. Alcoa has better OCF, FCF and working capital. It also has a much lower capital expenditure than before. The improvements are quite drastic if one compares to the year 2008 when the new CEO took over the company.

Balance sheet

Item (in $ million)	2008	2009	2010	2011
Cash	762	1,481	1,543	1,939
Inventory	3,238	2,328	2,562	2,899
Current assets	8,150	7,022	6,869	7,713
Goodwill	4,981	5,051	5,119	5,251
Intangibles	610	590	512	-
Total assets	37,822	38,472	39,293	40,120
Current liability	7,279	5,414	5,236	6,013
LT debt	8,509	8,974	8,842	8,640
Pension benefits	-	5,859	5,538	5,844
Other LT liab	7,381	1,889	1,764	2,438
Total liability	26,087	26,052	25,682	26,276
Equity	11,735	12,420	13,611	13,844
Tangible BV	6,144	6,779	7,980	8,593
Debt/Equity	0.73	0.73	0.65	0.63

Profitability

Item	2008	2009	2010	2011
Gross margin	17.6	8.3	18.3	17.9
Op margin	2.9	-8.1	2.6	6
Net margin	-0.28	-6.24	1.21	2.45
Tax rate	43.18	-	27.01	23.99
RoIC	-0.33	-5.18	1.13	2.66
FCF/Income	-	0.22	4.91	1.48
EPS	-0.09	-1.23	0.24	0.55

Shareholder return

Item	2008	2009	2010	2011
Shares	818	935	1,025	1,161
Dividend	0.68	0.26	0.12	0.12
P/S	0.3	0.8	0.8	0.4
P/B	0.8	1.3	1.2	0.7
P/E	40.2	-15.2	61.7	15.7
P/CF	7.5	11	7	4.4

Valuation

It is easy to value the company on a DCF basis but frankly it does not make a lot of sense to me for a cyclical stock. For a cyclical stock I rather trust the P/S analysis.

Using the last 10 years' data we s! ee that t! he market has paid between $1.5 and $0.3 for each dollar in sales. The current P/S ratio of 0.44 gives you a downside of 30% and an upside of 300% from the current price.

Couple this with the fact that Alcoa is a much better company in terms of almost all measures we saw above and we are getting a very good deal at the moment. The company has a better balance sheet, a much larger TBV, less debt and the FCF has been trending upwards since the new CEO took over. At some point things will hopefully get back to normal and the stock price will recover. I will keep adding until that day comes.

The company has not seen this share price (around $9) since April 2009, apart from small dips in between. Just before the previous leg of the bull run it was trading at $18 (April 2011) and dropped to a low of $8.45 around October 2011. The shares have not recovered much since then. You have to ask yourself, with all the scary things that you can think of about Alcoa, is the situation worse than it was in the 2009 crisis? If no, the much improved company should not be trading near the same price.

Additional disclosure: I bought 100 shares of Alcoa as a starting position yesterday.

Is Clorox a Buy at These Prices?

With shares of Clorox (NYSE:CLX) trading around $82, is CLX an OUTPERFORM, WAIT AND SEE or STAY AWAY? Let's analyze the stock with the relevant sections of our CHEAT SHEET investing framework:

T = Trends for a Stock’s Movement

Clorox is a manufacturer and marketer of consumer and professional products. Clorox operates in four segments: Cleaning, Household, Lifestyle and International. Clorox sells its products primarily through merchandisers, grocery stores, other retail outlets, distributors and medical supply providers. The company’s products include its namesake bleach and cleaning products, Clorox Healthcare, HealthLink, Aplicare and Dispatch products, Green Works naturally derived home care products, Pine-Sol cleaners, Poett home care products, Fresh Step cat litter, Glad bags, wraps and containers, Kingsford charcoal, Hidden Valley and K C Masterpiece dressings and sauces, Brita water-filtration products, and Burt’s Bees products. Many of the general products provided by Clorox are considered necessities by many consumers and companies worldwide. Look for Clorox to provide products that will continue to be enjoyed and needed.

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T = Technicals on the Stock Chart are Mixed

Clorox stock has seen a consistent uptrend over the last several years. The stock broke out to all-time high prices this years but has recently pulled-back a bit. Analyzing the price trend and its strength can be done using key simple moving averages. What are the key moving averages? The 50-day (pink), 100-day (blue), and 200-day (yellow) simple moving averages. As seen in the daily price chart below, Clorox is trading around its rising key averages which signal neutral to bullish price action in the near-term.

(Source: Thinkorswim)

Taking a look at the implied volatility (red) and implied volatility skew levels of Clorox options may help determine if investors are bullish, neutral, or bearish.

	Implied Volatility (IV)	30-Day IV Percentile	90-Day IV Percentile
Clorox Options	18.74%	83%	81%

What does this mean? This means that investors or traders are buying a very significant amount of call and put options contracts, as compared to the last 30 and 90 trading days.

	Put IV Skew	Call IV Skew
June Options	Steep	Average
July Options	Steep	Average

As of today, there is an average demand from call buyers or sellers and high demand by put buyers or low demand by put sellers, all neutral to bearish over the next two months. To summarize, investors are buying a very significant amount of call and put option contracts and are leaning neutral to bearish over the next two months.

On the next page, let’s take a look at the earnings and revenue growth rates and the conclusion.

E = Earnings Are Increasing Quarter-Over-Quarter

Rising stock prices are often strongly correlated with rising earnings and revenue growth rates. Also, the last four quarterly earnings announcement reactions help gauge investor sentiment on Clorox’s stock. What do the last four quarterly earnings and revenue growth (Y-O-Y) figures for Clorox look like and more importantly, how did the markets like these numbers?

	2013 Q1	2012 Q4	2012 Q3	2012 Q2
Earnings Growth (Y-O-Y)	-0.99%	17.72%	3.06%	4.75%
Revenue Growth (Y-O-Y)	0.86%	8.52%	2.53%	3.98%
Earnings Reaction	-1.44%	0.33%	0.95%	0.08%

Clorox has seen mostly increasing earnings and revenue figures over the last four quarters. From these figures, the markets have been pleased with Clorox’s recent earnings announcements.

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P = Excellent Relative Performance Versus Peers and Sector

How has Clorox stock done relative to its peers, Colgate-Palmolive (NYSE:CL), Procter & Gamble (NYSE:PG), Zep (NYSE:ZEP), and sector?

	Clorox	Colgate-Palmolive	Procter & Gamble	Zep	Sector
Year-to-Date Return	13.30%	11.36%	13.57%	12.95%	11.44%

Clorox has been a relative performance leader, year-to-date.

Conclusion

Clorox provides essential products that offer many uses to consumers and companies worldwide. The stock has been in a consistent uptrend over the last few years which has taken it to all-time high prices. Over the last four quarters, earnings and revenue figures have mostly increased which have pleased investors in the company. Relative to its peers and sector, Clorox has been a year-to-date performance leader. Look for Clorox to OUTPERFORM.

Detroit Fallout: Muni-Bond Offerings Stall

Jeff Kowalsky/Bloomberg via Getty ImagesMichigan Gov. Rick Snyder, left, and Kevyn Orr, Detroit's emergency manager. Detroit's bankruptcy filing is making it tougher on other Michigan issuers that want to tap the muni bond market. Saginaw County on Thursday became the third issuer to delay a multimillion dollar negotiated offering since Detroit's bankruptcy filing last month because yields on the deal would have been too high, according to reports. The $61 million taxable bonds were rated Aa3 by Moody's and were to have funded Saginaw's pension system. Saginaw follows Genesee County and Battle Creek, Mich., which each put off deals out of concern that investors would demand higher interest rates. The initial prices on the Saginaw bonds show they would have been high-yielding, Dow Jones reported. It said a 10-year was being offered to yield 1.7 percentage points above the 10-year Treasury, while a generic double-A might be priced to yield just 0.95 percent above Treasurys. Saginaw was planning to offer limited tax GO pension obligation bonds and it would have been the first government to issue a bond to cover its unfunded pension liabilities under a Michigan law adopted last year, according to the Bond Buyer. The Saginaw bonds had the double negative of being a GO associated with pension funding.

Genesee pulled a $54 million bond deal last week, and Battle Creek put off a $16 million sale. They were both planning to issue general obligation bonds, a particular concern for the market now because of the way that Detroit's emergency manager, Kevyn Orr, is trying to treat GO bonds as unsecured debt in the bankruptcy. If Orr succeeds, it would be a first occurrence in the $3.7 trillion muni market, and could bring into question the standing and ratings of some other GO bonds, analysts say. About 40 percent of the muni market is GO bonds, which have been viewed as sacrosanct by the market. "There's no doubt there's this residual spillover effect from the concern about what he's trying to do," said John Donovan, senior vice president at Drexel Hamilton. "You extrapolate out from there to GO debt. It doesn't look like it yet because most people don't believe it's going to happen, including myself. But there's always risk of spillover concern with anything." Donovan said the market is stabilizing at wider levels. Lipper reported that combined mutual fund and ETF net outflows from muni funds were just under $1 billion in the past week, less than half the amount of the prior week. It was the eleventh consecutive week of outflows. Triple-A rated Bloomfield, Mich. and Oakland County both still plan to bring deals. Donovan said two very small Michigan municipal deals,under $10 million were also postponed. Oakland County plans to bring a $300 million deal in September, according to Bond Buyer. The ripples from Detroit have gone beyond Michigan. "Detroit fears have added to pressure about Puerto Rico," said Blake Anderson of Mesirow Financial. Puerto Rico's Electric Power Authority Electric Power Authority issued $673 million in debt to yield of 7.12 percent Wednesday. The bonds, maturing 2043, are rated one step above junk by Moody's and saw strong demand. "It offered up some yields that the market hasn't seen for a long time," said Donovan.

Top 10 Value Companies To Invest In 2014

The real-money Inflation-Protected Income Growth portfolio just finished another solid week. The value of its holdings increased nearly $200 since the prior week's update, finishing above $34,200. That's not bad for a portfolio that started just over five months ago with $30,000.

It's also not a sustainable rate of return. Thanks in large part to a rapidly rising market, many of the stocks in the iPIG portfolio have risen far faster than the economic successes of the companies they represent. Indeed, several of the companies in the portfolio have seen their stocks rise so much that, if they weren't already iPIG members, they wouldn't make the cut today.

And that's a good thing
The iPIG portfolio maintains strict investing standards built on the principles of dividends, valuation, and diversification as inspired by Benjamin Graham, the man who taught investing to Warren Buffett. It's because of those standards that somewhere in the neighborhood of 10% of the portfolio's original investment capital remains in cash. It's also because of those standards that it's OK to hold on to many of the companies that are in the portfolio but wouldn't make it as new picks today.

Top 10 Value Companies To Invest In 2014: Tupperware Corporation(TUP)

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

Advisors' Opinion:

• [By Sam Collins]

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

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

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

Top 10 Value Companies To Invest In 2014: Caterpillar Inc.(CAT)

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

Advisors' Opinion:

• [By Roberto Pedone]

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

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

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

Top Performing Stocks To Own Right Now: Dollar Tree Inc.(DLTR)

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

Advisors' Opinion:

• [By Sam Collins]

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

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

Top 10 Value Companies To Invest In 2014: Schlumberger N.V.(SLB)

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

Advisors' Opinion:

• [By Robert Holmes]

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

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

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

• [By Kathy Kristof]

  Headquarters: Houston
  
  52-Week High: $79.38
  
  52-Week Low: $56.86 
  
  Annual Sales: $39.5 bill.
  
  Projected Earnings Growth: 18% annually over the next five years 
  
  
  Energy-services giant Schlumberger is the prototypical multinational. The company derives roughly 85% of its revenues from overseas, including developing markets in Africa, Brazil and Asia. 
  
  With particular expertise in deep-water drilling, Schlumberger is well-positioned to compete in a world where oil is harder to find, says Argus Research analyst Philip Weiss. Admittedly, oil exploration is a cyclical business, driven largely by crude prices. And weak prices for natural gas have hit the company’s stock, Weiss says. But the price of natural gas has little to do with Schlumberger’s profits, so Weiss just sees this as an opportunity to get the shares at a more reasonable price.

Merck Halts Parkinson's Drug Trials

The phase 3 clinical program for Merck's (NYSE: MRK  ) new drug preladenant, a receptor antagonist in the treatment of Parkinson's disease, will be discontinued based on a lack of efficacy compared to a placebo, the company announced yesterday. After studying the results of three independent phase 3 clinical trials, Merck has decided to "discontinue the extension phases of these studies and no longer plans to pursue regulatory filings for preladenant," the company said in a statement.

In response to the preladenant trial results, Dr. David Michelson, vice president of clinical research, neuroscience, and ophthalmology at Merck research laboratories, said, "Parkinson's disease is very complex, making it difficult to treat patients and develop novel therapeutic approaches."

Merck intends to conduct further studies of the preladenant trial's results and will share its data with the scientific community in an effort to find "new approaches to treat this debilitating disease."

If This Is Evil Netflix, Where Is the Goatee?

Netflix (NASDAQ: NFLX  ) apparently doesn't want its subscribers to suffer from stream anxiety.

The leading video service has let subscribers know when the streaming licenses on its movies and shows are expiring -- giving members the opportunity to dig deep into their virtual queues to check out content before it goes away -- for some time.

Netflix also used to make the expiration dates known to third-party developers that offer applications to track these changes, but that ends this week.

"Starting today, we will no longer provide expiration dates for any of our titles in the public API," Netflix announced on Monday in its blog for developers. "We are making this change because the expiration date can be inaccurate as a result of frequent, often last minute, changes in content flow."

Changes do happen, but there is little doubt that this stems from the backlash that Netflix received after nearly 2,000 of its streaming titles expired last month.

Netflix isn't being entirely evil here.

"Netflix members will still be able to see the listed title expirations on Netflix.com on each individual title page," the blog entry concludes.

In other words, Netflix isn't going to make it a complete mystery to its 29.2 million domestic streaming customers. I still know that I have to break it to my son that SpongeBob SquarePants is going away next week. It may be inconvenient for subscribers to have to click through to individual title pages or pull up their queue on a PC and scroll through the "Notes" column, but the information is there. It's just a questionable move to make it harder for programmers to relay this information in more engaging ways than Netflix's organic solution.

This is the new reality. Discs may be forever, but streaming titles go away.

Subscribers will have to learn to live with that. Netflix has lost popular content before. Amazon.com (NASDAQ: AMZN  ) hasn't had as many content deletions, but that's because it's only been in this niche since 2011. Just wait until the expiration anniversaries begin to pile up.

Licensing will always be a major shortcoming. It's not just about the studios keeping new content away the way that they did on the DVD side through Netflix, Coinstar's (NASDAQ: CSTR  ) Redbox, and Dish Network's (NASDAQ: DISH  ) Blockbuster, delaying new releases by weeks in exchange for favorable purchase terms. Older titles will also be hard to keep around.

The upside here is that Netflix and Amazon are already starting to know what content is actually worth to their users during their initial runs. A key reason for Netflix targeting Arrested Development for a revival is that it saw its audience grow, unlike most of the cult shows available through its site, where the audience remains steady.

Streaming services will inevitably break your heart -- just as Blockbuster Video stores and Redbox kiosks eventually run out of stocking space -- but at least the decision to move on will be one based on hard numbers. Hopefully as soon as we all realize that streaming licenses don't live forever, Netflix can open up again about the mortality of its titles to third-party developers.

The tech war will be streamed
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5 Best High Tech Stocks To Own For 2014

Call it the "amazing streak," but the broad-based S&P 500 (SNPINDEX: ^GSPC  ) advanced for a 20th consecutive Tuesday -- an odd and remarkable feat.

Leading the index higher today were comments from the Federal Reserve, which reassured investors that the central bank wouldn't pare back its bond-buying program -- affably known as QE3 -- before it knows the economy is on stable footing. On the economic data front, the Case-Shiller Index delivered growth of 10.9% over the previous year in terms of the nation's 20 largest cities. An improving housing market is one of a crucial number of components to America's ongoing recovery process. Consumers seem to agree, with consumer confidence racing higher to 76.2 in May -- considerably higher than the 68.1 reported last month.

5 Best High Tech Stocks To Own For 2014: ENTERTAINMENT ONE LTD ORD CAD0.01(ETO.L)

Entertainment One Ltd. engages in the acquisition, production, and distribution of film and television content primarily in Canada, the United States, the United Kingdom, and other countries in Europe. The company operates as an integrated producer, distributor, and international sales agent of feature films and television programming. It offers a range of product genres, including independent films, TV on DVD, children?s programs, special interest, and music, as well as owns long term rights to theatrical, home entertainment, and TV titles. The company also engages in producing series, mini-series, television movies, and documentaries; international film and TV licensing, such as eclectic mix of programming from scripted series to kids? programming, animation, reality, factual, and movies; and TV broadcast sales, home video, and merchandising licenses, as well as provides digital music and video content for digital service providers. It has a rights library of approxima tely 20,000 film and television titles; and 2,500 hours of television programming. In addition, the company is involved in the wholesale of DVDs, CDs, and video games, as well as music and video through physical and digital channels to retail partners. Entertainment One Ltd. was founded in 1973 and is based in Toronto, Canada.

5 Best High Tech Stocks To Own For 2014: ArcelorMittal SA (MT)

ArcelorMittal, incorporated on June 8, 2001, is a global steel producer. During the year ended December 31, 2010, ArcelorMittal had steel shipments of approximately 85 million tons and crude steel production of approximately 90.6 million tons. ArcelorMittal produces a range of finished and semi-finished products. ArcelorMittal produces flat products, including sheet and plate, long products, including bars, rods and structural shapes, and stainless steel products. The Company operates in five segments: Flat Carbon Americas; Flat Carbon Europe; Long Carbon Americas and Europe; Asia, Africa and Commonwealth of Independent States (CIS) (AACIS), and Distribution Solutions. ArcelorMittal also produces pipes and tubes for various applications. ArcelorMittal sells its products in local markets and through its centralized marketing organization to a range of customers in approximately 174 countries, including the automotive, appliance, engineering, construction and machinery industries. On February 18, 2011 ArcelorMittal and Nunavut Iron Acquisition Inc. announced they had taken up over 93% of the Baffinland Iron Mines Corporation (Baffinland) under their joint offer. On January 25, 2011, ArcelorMittal approved the spin-off of ArcelorMittal�� stainless and specialty steels business into Aperam. On September 20, 2010, ArcelorMittal Poland completed the acquisition of Zaklady K Zdzieszowice. On July 23, 2010, the Company completed the acquisition of ArcelorMittal Ostrava. On July 5, 2010, the Company completed a disposition of the Anzherskaya coal mine in Russia.

Flat Carbon Americas

ArcelorMittal�� Flat Carbon Americas segment has production facilities in both North and South America, including the United States, Canada, Brazil and Mexico. As of December 31, 2010, ArcelorMittal USA had 18 production facilities, consisting of four integrated steel-making plants, one basic oxygen furnace/compact strip mill, six electric arc furnace plants, five finishing plants, and two coke-makin! g operations. ArcelorMittal USA�� operations include both flat carbon and long carbon production facilities. ArcelorMittal USA�� main flat carbon operations include integrated steel-making plants at Indiana Harbor, Burns Harbor and Cleveland. ArcelorMittal USA, through various subsidiaries, owns interests in joint ventures, including ArcelorMittal Tek, ArcelorMittal Kote, Double G Coatings, PCI Associates, and Hibbing Taconite Company. ArcelorMittal USA also owns several short-line railroads that transport materials among its facilities, as well as raw material assets. ArcelorMittal USA operates an iron ore mine through its wholly owned subsidiary ArcelorMittal Minorca. ArcelorMittal Coal Group USA, LLC and its subsidiaries operate surface mines and deep mines in McDowell County, as well as a surface mine in Tazewell County.

ArcelorMittal Tubarao (AMT), a wholly owned subsidiary of ArcelorMittal Brasil, has two production facilities: the Tubarao integrated steel making facility and the Vega finishing complex. ArcelorMittal Lazaro Cardenas (AMLC) is a steel producer in Mexico. AMLC operates a pelletizer plant, two direct reduced iron plants, electric arc furnace-based steel-making plants and continuous casting facilities. ArcelorMittal Dofasco Inc. (Dofasco) is a North American steel solution provider and manufacturer of flat rolled steels. Its products include hot-rolled, cold rolled, galvanized and tinplate, as well as tubular products and laser-welded blanks. ArcelorMittal Mines Canada is a North American producer of iron ore products, including concentrate and several types of pellets. During 2010, the mines in aggregate produced 15.1 million tons of pellets and concentrates.

Flat Carbon Europe

ArcelorMittal�� Flat Carbon Europe segment has production facilities in Western and Eastern Europe, including Germany, Belgium, France, Spain, Italy, Luxembourg, Romania, Poland, Macedonia, Estonia and the Czech Republic. ArcelorMittal�� Flat Carbon Europe segm! ent has p! roduction facilities in Western and Eastern Europe, including Germany, Belgium, France, Spain, Italy, Luxembourg, Romania, Poland, Macedonia, Estonia and the Czech Republic. During 2010, ArcelorMittal Bremen GmbH produced 3.3 million tons of crude steel. The facilities of ArcelorMittal Liege Upstream are located in two main plants along the Meuse River: the Seraing-Ougree plant, which includes a coke plant, a sinter plant and two blast furnaces, and the Chertal plant, which includes a steel shop with three converters, a ladle metallurgy, two continuous caster machines and a hot strip mill. During 2010, ArcelorMittal Liege Upstream produced 0.9 million tons of crude steel. ArcelorMittal Atlantique is part of ArcelorMittal Atlantique et Lorraine, which is wholly owned by ArcelorMittal France. It has four plants in the north of France, located in Dunkirk, Mardyck, Montataire and Desvres. During 2010, ArcelorMittal Atlantique et Lorraine S.A.S. produced 5.3 million tons of crude steel.

During 2010, ArcelorMittal Eisenhuttenstadt GmbH produced 1.9 million tons of crude steel. It produces and sells a range of products, including hot-rolled, cold-rolled, electrical and hot dip galvanized and organic-coated rolls to automotive, distribution, metal processing, construction and appliances industry customers in Germany, Central and Eastern Europe. ArcelorMittal Mediterranee S.A.S. operates a flat carbon steel plant in Fos-sur-Mer. It also operates a finishing facility for electrical steel located in Fos-sur-Mer. ArcelorMittal Mediterranee S.A.S.�� principal equipment consists of one coke oven plant, one sinter plant, two blast furnaces, two basic oxygen furnaces, two continuous slab casters, one hot strip mill, one pickling line, one cold rolling mill and two continuous annealing lines. ArcelorMittal Mediterranee�� products include coils to be made into wheels, pipes for energy transport and coils for finishing facilities for exposed and non-exposed parts of car bodies, as well as the constructio! n, home a! ppliance, packaging, pipe and tube, engine and office material industries. ArcelorMittal Gent is an integrated coastal steelworks. ArcelorMittal Liege produces a range of steel grades, including a range of construction steels and micro-alloyed grades.

ArcelorMittal Piombino manufactures galvanized and organic-coated steel products. During 2010, it operated one pickling line, four-stand tandem mill, three hot dip galvanizing lines and three organic coating lines. ArcelorMittal Piombino�� products are sold to European customers, primarily in the distribution, appliance and construction industries. During 2010, ArcelorMittal Dudelange operated two hot dip-coating lines, producing Alussi and Aluzinc, and two electro galvanizing lines for appliances and industries. ArcelorMittal Sagunto is a flat steel finishing products. The facilities consist of a pickling line, a regeneration plant for hydrochloric acid and a full continuous five stands tandem mill. ArcelorMittal Sestao�� equipment consists of two electric arc furnaces, two continuous slab casters, one hot rolling mill and one pickling line. During 2010, ArcelorMittal Sestao produced 1.3 million tons. ArcelorMittal Sestao is a supplier of hot-rolled, pickled and oiled coils to the Spanish market. Its range of production includes cold forming and drawing steels, structural steels, cold for re-rolling, direct galvanization, dual phase, weather resistance and floor plates.

ArcelorMittal Poland S.A. (AMP) is a steel producer in Poland. AMP�� Zdzieszowice Coke Plant produces and supplies coke to ArcelorMittal subsidiaries and third parties. AMP produces coke and a range of steel products, including both long products and flat products. Its product range includes slabs, billets, blooms, sections, rails, hot-rolled sheets and strips, cold rolled sheets and strips, galvanized sheets, heavy plates, wire-rods, wires and other wire products and coated sheets and coils. During 2010, ArcelorMittal Galati S.A. produced 1.9 million tons! of crude! steel which were sold as plates, hot-rolled coil, cold rolled coil and galvanized products for the Romanian, Turkish and Balkan markets. ArcelorMittal Ostrava a.s. produces both flat and long carbon products. ArcelorMittal Annaba produces both flat and long carbon products.

Long Carbon Americas and Europe

ArcelorMittal�� Long Carbon Americas and Europe segment has production facilities in North and South America and Europe, including the United States, Canada, Brazil, Argentina, Costa Rica, Mexico, Trinidad, Spain, Germany, France, Luxembourg, Poland, Romania, Morocco, Algeria, Bosnia and Herzegovina and the Czech Republic. ArcelorMittal Brasil S.A. is a long-rolled steel producer and the wire steel producer in Latin America in terms of both capacity and sales. During 2010, ArcelorMittal Brasil S.A.�� steel production facilities included one integrated plant, one semi-integrated steel plant, three mini-mills, nine wire plants and three plants that produce transformed steel products. In addition, ArcelorMittal Brasil S.A., through its subsidiary, produces charcoal from eucalyptus forestry operations that is used to fuel its furnaces in Juiz de Fora and or to exchange for pig iron with local producers, and through the jointly controlled entity Guilman Amorin, produces energy used to supply the Joao Monlevade plant. During 2010, it produced 3.4 million tons of crude steel and a total of 3.3 million tons of rolled products, of which 0.6 million tons were processed to manufacture wire products. Andrade Mine is an iron ore producer located in the Minas Gerais state of Brazil. In 2010, Andrade Mine produced 1.6 million tons of iron ore.

ArcelorMittal Mineracao Serra Azul is an iron ore producer located in the Minas Gerais state of Brazil. It supplies sinter feed to ArcelorMittal plants in Europe and domestic market and also lump ore for local pig iron producers and certain ArcelorMittal Brasil integrated plants. During 2010, ArcelorMittal Mineracao Serra Azul produ! ced 3.3 m! illion tons of iron ore. It produces rebars, wire rod, merchant bars, special bar quality (SBQ), wires, wire mesh, cut and bend and drawn bars. Acindar�� own distribution network can also service end-users. ArcelorMittal Point Lisas Ltd. is a steelmaker in the Caribbean. During 2010, ArcelorMittal Point Lisas exported substantially all of its wire rod shipments, to steel manufacturers in South and Central America, the Caribbean and the United States. ArcelorMittal USA produces both flat and long carbon products. During 2010, ArcelorMittal Montreal Inc. produced 1.8 million tons of crude steel. ArcelorMittal Duisburg GmbH�� production facilities are located in Ruhrort and Hochfeld, Germany. During 2010, ArcelorMittal Duisburg GmbH produced 1.2 million tons of crude steel. During 2010, ArcelorMittal Hamburg GmbH produced one million tons of crude steel. ArcelorMittal Poland S.A. produces both flat carbon and long carbon products. ArcelorMittal Ostrava�� production facilities are located in Ostrava, Czech Republic. As of December 31, 2010, ArcelorMittal Energy Ostrava had 11 boilers. During 2010, ArcelorMittal Rodange & Schifflange produced 0.7 million tons of crude steel. During 2010, ArcelorMittal Warszawa S.p.z.o.o. produced 0.5 million tons of crude steel. During 2010, ArcelorMittal Madrid produced 0.4 million tons of crude steel.

ArcelorMittal Zaragoza is located in Aragon, in northeastern Spain. During 2010, ArcelorMittal Zaragoza produced 0.5 million tons of crude steel. During 2010, ArcelorMittal Zenica produced 0.6 million tons of crude steel. During 2010, ArcelorMittal Prijedor produced 1.4 million tons of iron ore. ArcelorMittal Annaba produces both long and flat products. Its flat product range includes slabs, hot rolled and cold-rolled coils and sheets, hot-dipped galvanized products and tin plates, and its long product range includes billets, wire-rods, rebars and seamless tubes. Societe Nationale de Siderurgie (Sonasid) is a steel producer in Morocco and has facilities in! Nador, J! orf and Lasfar. Its facilities consist of one electric arc furnace, one continuous caster, one wire rod and one bar mill. Sonasid produces steel bars and rods. These products include reinforcing bars, wire rods and merchant bars. During 2010, Sonasid produced 0.5 million tons of crude steel. ArcelorMittal Hunedoara�� facilities are located in Romania. Its production facilities are one electric arc furnace, two continuous casters and a sections rolling mill. During 2010, Arcelor Mittal Hunedoara produced 0.1 million tons of crude steel. During 2010, ArcelorMittal Tubular Products division operated 19 operating units in Europe, North America, South America, CIS and Africa. The division caters to the energy, mechanical and automotive tubing and components markets. The facilities include four facilities producing seamless tubes, three facilities producing large diameter welded tubes, 10 facilities producing electric resistance welded (ERW) tubes, one facility producing cold drawn tubes and two facilities producing automotive components using welded tubes.

AACIS

ArcelorMittal�� AACIS segment has production facilities in Asia and Africa, including Kazakhstan, Ukraine, South Africa and Russia. During 2010, ArcelorMittal South Africa Ltd. produced 5.5 million tons of crude steel. OJSC ArcelorMittal Kryviy Rih�� integrated steel plant consists of six coke oven plants, three sintering plants, six blast furnaces, six basic oxygen furnaces, two open hearth furnaces, two blooming mills and six light section / bar mills and three wire rod mills. ArcelorMittal Temirtau�� wholly owned integrated steel plant located in the Karaganda region of Kazakhstan, consists of six coke oven batteries of which six are operating, three sinter plants, four blast furnaces (three of which are operational), three basic oxygen furnaces, two continuous slab casters, one hot strip mill, two cold rolling mills and three tinning lines, one hot dip galvanizing and one aluminum-zinc coating lines, one color ! coating l! ine, two welded pipe mills and a bar mill.

JSC ArcelorMittal Temirtau�� products includes pig iron, continuous caster slabs, hot- and cold-rolled coils and sheets, black plates, covers, tin plates, hot dipped galvanized products, color coated products and welded pipes, bars, sections and re-bars. JSC ArcelorMittal Temirtau has four iron ore mines in central Kazakhstan. ArcelorMittal Northern Kuzbass in Siberia, Russia includes the Berezovskaya and Pervomayskaya mines, as well as the Severnaya coal washery. The main consumers of the coking coal produced are OJSC ArcelorMittal Kryviy Rih and some local coke producers.

Distribution Solutions

Distribution Solutions is primarily the in-house trading and distribution arm of ArcelorMittal. It also provides steel solutions. It services a range of customer industries, including automotive, construction, household appliances, public works, civil engineering and general industry. The range of Distribution Solutions is offered through a network covering 30 countries, while specific solutions are dispatched in five business units: ArcelorMittal Construction Solutions, ArcelorMittal International, ArcelorMittal Projects, ArcelorMittal Total Offer Processing, ArcelorMittal Wire Solutions. The range of distribution solutions is organized across geographical areas through locally empowered management: Benelux, Central and Eastern Europe, France, Germany/Switzerland, Iberia, Italy, the Maghreb, Turkey/Mediterranean, South America, Poland, the United Kingdom/Scandinavia. The processing facilities provide services for flat and long carbon steel, as well as for specialty products, from light finishing work on beams to an integrated offer of slit coils, sheets and blanks.

ArcelorMittal Construction Solutions provides its customers with steel-based solutions for cladding, roofing, flooring and structure. ArcelorMittal International is the global sales network supplying ArcelorMittal products from over 30 mills outside ! of their ! home markets. ArcelorMittal Projects provides distribution solutions and services for projects in foundation solutions, infrastructure, oil and gas and building related steel constructions. ArcelorMittal Total Offer Processing provides a global offer in steel processing, ranging from design to production and from the logistics of steel components to steel solutions for industrial accounts. ArcelorMittal Wire Solutions is a global industrial wiredrawer, serving sectors, such as agriculture, automotive, construction, energy and general industry.

Top 5 Growth Stocks To Watch Right Now: Fuxing China Group Limited (DC9.SI)

Fuxing China Group Limited, an investment holding company, engages in the manufacture and sale of zipper products in the People�s Republic of China and Hong Kong. It offers finished zippers, zipper chains, and zipper sliders. The company is also involved in trading raw materials for textile sector; manufacturing and selling dyed yarn; processing colors dyeing of fabric tapes for zippers; and providing electroplating services for zipper sliders. In addition, it engages in real estate development activities. The company sells its zipper products primarily to manufacturers of apparel and footwear products, camping equipment, bags, and upholstery furnishings, as well as trading companies and other zipper manufacturers. Fuxing China Group Limited also exports its products to Australia, the European Union, Russia, Turkey, Korea, Thailand, Vietnam, Indonesia, and internationally. The company was founded in 1993 and is headquartered in Jinjiang, the People�s Republic of China. F uxing China Group Limited is a subsidiary of Morgan Stanley Asia (Singapore) Securities Pte Ltd.

5 Best High Tech Stocks To Own For 2014: Bca Erturi-lazio(PEL.MI)

Banca Popolare dell?Etruria e del Lazio provides banking and financial services to the private, corporate, and retail customers in Italy. It primarily offers traditional deposits and lending services. The company provides current-account transactions, bank transfers, and payment of notes; mortgages, such as 30-year mortgages, capped mortgages, and high-loan-to-value mortgages; revaluable policies comprising participating and endowment-type policies, plus pension planning, pure-risk, capital redemption, and index and unit-linked policies. It also provides online trading services for buying and selling equities listed on the Milan screen-based equities market; warrants; and covered warrants. In addition, the company offers loan intermediation, consumer credit, information technology, real estate, and business financial advisory services, as well as remote banking, home banking, and Internet banking services. As of December 31, 2008, it operated a branch network of 186 branc hes in the regions of Tuscany, Latium, Umbria, Marche, Abruzzo, Molise, Emilia Romagna, Lombardia, and Veneto. The company was founded in 1882 and is headquartered in Arezzo, Italy.

5 Best High Tech Stocks To Own For 2014: Premier Exhibitions Inc.(PRXI)

Premier Exhibitions, Inc. provides museum quality touring exhibitions worldwide. It develops, deploys, and operates exhibition products; sells apparel, posters, and Titanic-related jewelry; publishes exhibition catalogs; and provides ancillary services, such as audio tours and photographs for public in the exhibition centers, museums, and non-traditional venues. The company operates and promotes various exhibitions, including Bodies Revealed and Bodies, The Exhibition, that display multiple human anatomy sets, which contain a collection of whole human body specimens, single human organs, and body parts; Titanic, the artifact exhibition, which features the artifacts recovered from the wreck site; and Dialog in the Dark that is intended to provide insight and experience to the paradox of learning to see without the use of sight. Premier Exhibitions, Inc. was founded in 1987 and is based in Atlanta, Georgia.