Wednesday, July 31, 2013

Should I Invest in Aberdeen Asset Management?

LONDON -- To me, capital growth and dividend income are equally important. Together, they provide the total return from any share investment and, as you might expect, my aim is to invest in companies that can beat the total return delivered by the wider market.

To put that aim into perspective, the FTSE 100 has provided investors with a total return of around 3% per annum since January 2008.

Quality and value
If my investments are to outperform, I need to back companies that score well on several quality indicators and buy at prices that offer decent value.

So this series aims to identify appealing FTSE 100 investment opportunities, and today I'm looking at Aberdeen Asset Management  (LSE: ADN  ) , which manages assets for both institutions and private individuals.

With the shares at 432 pence, the company's market cap. is £5,192 million.

This table summarizes the firm's recent financial record:

Year to September 2008 2009 2010 2011 2012
Revenue (£m) 430 422 638 784 869
Net cash from operations (£m) 65 17 213 366 369
Adjusted earnings per share 9.45p 6.52p 14.09p 20.13p 24.45p
Dividend per share 5.8p 6p 7p 9p 11.5p

The shares of Aberdeen Asset Management have been shooting up for some time and the recent half-year results did much to underpin that movement, with a 13% rise in assets under management to 212 billion, a 25% rise in revenue to £516 million, a 43% rise in underlying earnings per share and, to headline the good news, a 36% dividend increase.

According to the directors, the good results reflect wider stock market strength, driven by a steady flow of investors returning to riskier assets like shares. But the firm's success also seems to rely on its uncomplicated approach to investing its clients' money. Rather than overtrading or using arcane investment techniques, Aberdeen Asset Management tries to identify good companies, then simply buys the shares and holds them.

That seems like a winning strategy in a steadily improving macro-economic environment to me, so I'm optimistic about the firm's total-return prospects from here.

Aberdeen Asset Management's total-return potential
Let's examine five indicators to help judge the quality of the company's total-return potential:

1. Dividend cover: adjusted earnings covered last year's dividend just over twice. 4/5

2. Borrowings: there is net cash on the balance sheet. 5/5

3. Growth: growing cash flow strongly supports rising revenue and earnings. 5/5

4. Price to earnings: a forward 12 compares well to growth and yield expectations. 4/5

5. Outlook: good recent trading and a cautiously positive outlook. 4/5

Overall, I score the firm 22 out of 25, which encourages me to believe it has potential to out-pace the wider market's total return going forward.

Foolish summary
There's a good showing on all of my quality and value indicators here, which encourages me to believe that, yes, I should invest in Aberdeen Asset Management.

But I'm also attracted to a share that one of the Fool's top investment writers has uncovered. He has put his money where his mouth is by investing and believes the share is the "Motley Fool's Top Growth Share for 2013." In this new Fool report, you can discover how the firm has reenvisioned itself to allow for tremendous growth along new horizons. Right now, the report is free to download and tells you exactly why our expert has invested in, and expects strong growth from, this changing company with a strong pedigree. To get your copy, click here.

Tuesday, July 30, 2013

Hot Heal Care Companies To Buy For 2014

Although business headlines still tout earnings numbers, many investors have moved past net earnings as a measure of a company's economic output. That's because earnings are very often less trustworthy than cash flow, since earnings are more open to manipulation based on dubious judgment calls.

Earnings' unreliability is one of the reasons Foolish investors often flip straight past the income statement to check the cash flow statement. In general, by taking a close look at the cash moving in and out of the business, you can better understand whether the last batch of earnings brought money into the company, or merely disguised a cash gusher with a pretty headline.

Calling all cash flows
When you are trying to buy the market's best stocks, it's worth checking up on your companies' free cash flow once a quarter or so, to see whether it bears any relationship to the net income in the headlines. That's what we do with this series. Today, we're checking in on Valassis Communications (NYSE: VCI  ) , whose recent revenue and earnings are plotted below.

Hot Heal Care Companies To Buy For 2014: UFP Technologies Inc.(UFPT)

UFP Technologies, Inc., through its subsidiaries, engages in the design and manufacture of engineered packaging solutions for medical and scientific, automotive, aerospace and defense, computer and electronics, industrial, and consumer markets. The company offers packaging products primarily using polyethylene, polyurethane, cross-linked polyethylene foams, and rigid plastics. Its packaging products include end-cap packs for computers, corner blocks for telecommunications consoles, anti-static foam packs for printed circuit boards, die-cut or routed inserts for cases, molded foam enclosures for orthopedic products, and plastic trays for medical devices and components. UFP Technologies also fabricates and molds component products made from cross-linked polyethylene foam and other materials, as well as engages in laminating fabrics and other materials to cross-linked polyethylene foams, polyurethane foams, and other substrates. The company?s component products include automo tive interior trim, athletic padding, industrial safety belts, medical device components, air filtration, high-temperature insulation, abrasive nail files and other beauty aids, anti-fatigue mats, and shock absorbing inserts used in athletic and leisure footwear. It sells its products primarily under United Foam, Simco Automotive, and Molded Fiber brand names through direct sales force, independent manufacturer representatives, and distributors. The company was founded in 1963 and is headquartered in Georgetown, Massachusetts.

Hot Heal Care Companies To Buy For 2014: TranSwitch Corporation(TXCC)

Transwitch Corporation designs, develops, and supplies semiconductor and intellectual property solutions for voice, data, and video communications equipment. The company provides integrated multi-core network processor system-on-a-chip (SoC) and software solutions for fixed, 3G and 4G mobile, VoIP, and multimedia infrastructures. It offers converged network infrastructure products, including infrastructure VoIP processors comprising Entropia series of processors for wire-line and wireless carrier equipment; EoS/EoPDH mappers and framers for formats and data speeds in the access portion of the network; tributary switches that enable traffic to be switched or re-arranged; and carrier Ethernet solutions consisting of Ethernet controllers and switches, as well as circuit emulation and clock recovery devices. The company also provides FTTx protocol processors, such as mustang, a system-on-chip solution for EPON optical network unit equipment; COLT processor, a system-on-chip so lution for the optical line terminator equipment; and Diplomat-ONT product, an integrated SoC solution for GPON ONU applications, as well as access VoIP processors and access controllers. In addition, it offers broadband customer premises equipment, including multi-service communications processors comprising Atlanta processor, a multi-service SoC for customer premises equipment that supports toll-quality telephone voice, fax, and routing functionality; and HDMI, displayport, HDP, and Ethernet IP cores for consumer electronics, home network equipment, and industrial and automotive applications. The company serves public network systems OEMs, WAN and LAN equipment OEMs, Internet-oriented OEMs, and communications test and performance measurement equipment OEMs, as well as government, university, and private laboratories. It sells its products through direct sales force, independent distributors, and sales representatives. The company was founded in 1988 and is headquartered in Shelton, Connecticut.

Advisors' Opinion:
  • [By Michael Brush]

    If you find yourself craving more high-definition video on your smartphone or tablet computer or if you've been checking out 3D televisions -- the next big trend -- you already know why TranSwitch (TXCC) stock should be a winner over the next few years.

    Once a techmania darling, trading at more than $500 a share, TranSwitch crashed and burned along with so many other Internet stocks. It has been all but left for dead since. Wall Street analysts are predicting the stock will actually have fallen to $2 a year from now, from recent levels of around $2.60, according to Thomson Reuters.

    What they're missing is that TranSwitch has revamped its chip offerings so they support high-definition video connections in TVs, PC and game monitors, smartphones, tablets and video cameras. This exposes the company to some big consumer trends. Another new product line supports gear that connects homes, offices and smartphones to the Internet.

    Those analysts and other investors don't put much faith in these new products. So why should you? Because the right kinds of insiders have been accumulating stock. Many of the new products are scheduled to hit the market over the next three months and generate meaningful sales by the fourth quarter. So now is the time to buy.

    Of course, we don't know for sure that TranSwitch's new products will catch on. But behind the scenes, they've been licensed by the likes of Intel (INTC), International Business Machines (IBM), Texas Instruments (TXN) and Analog Devices (ADI), Ted Chung, the TranSwitch vice president of global business development, tells me. That suggests TranSwitch may work its way into the Apple (AAPL) iGadget ecosystem, says Northland Capital Markets analyst Richard Shannon. That would be a game-changer for tiny TranSwitch, but the markets for its new products are so big that it probably can win even without such an advantage

  • [By Michael Brush]

    If you find yourself craving more high-definition video on your smartphone or tablet computer or if you've been checking out 3D televisions -- the next big trend -- you already know why TranSwitch (TXCC) stock should be a winner over the next few years.

    Once a techmania darling, trading at more than $500 a share, TranSwitch crashed and burned along with so many other Internet stocks. It has been all but left for dead since. Wall Street analysts are predicting the stock will actually have fallen to $2 a year from now, from recent levels of around $2.60, according to Thomson Reuters.

    What they're missing is that TranSwitch has revamped its chip offerings so they support high-definition video connections in TVs, PC and game monitors, smartphones, tablets and video cameras. This exposes the company to some big consumer trends. Another new product line supports gear that connects homes, offices and smartphones to the Internet.

    Those analysts and other investors don't put much faith in these new products. So why should you? Because the right kinds of insiders have been accumulating stock. Many of the new products are scheduled to hit the market over the next three months and generate meaningful sales by the fourth quarter. So now is the time to buy.

    Of course, we don't know for sure that TranSwitch's new products will catch on. But behind the scenes, they've been licensed by the likes of Intel (INTC), International Business Machines (IBM), Texas Instruments (TXN) and Analog Devices (ADI),  Ted Chung, the TranSwitch vice president of global business development, tells me. That suggests TranSwitch may work its way into the Apple (AAPL) iGadget ecosystem, says Northland Capital Markets analyst Richard Shannon. That would be a game-changer for tiny TranSwitch, but the markets for its new products are so big that it probably can win even without such an advantage. 

10 Best Stocks To Invest In Right Now: Curis Inc.(CRIS)

Curis, Inc., a drug discovery and development company, focuses on the research and development of cancer therapeutics. The company, under collaboration with Genentech, Inc., is conducting a pivotal Phase II clinical trial on its lead molecule, GDC-0449 in advanced basal cell carcinoma patients, as well as various Phase II clinical trials in first-line metastatic colorectal cancer and advanced ovarian cancer patients. It is also evaluating CUDC-101, a small molecule that is in a Phase I clinical testing and is designed to target histone deacetylase, epidermal growth factor receptor, and epidermal growth factor receptor 2. In addition, Curis has a development candidate, Debio 0932, which is a Heat Shock Protein 90 or Hsp90 inhibitor. The company holds a license agreement with Debiopharm related to its Hsp90 technologies. Further, it involves in preclinical testing for the development of candidates from its targeted cancer programs. The company was founded in 2000 and is base d in Lexington, Massachusetts.

Advisors' Opinion:
  • [By Michael Shulman]

    Curis (NASDAQ: CRIS) has developed a series of cancer treatments based on a technology that disrupts intercellular signaling in the Hedgehog pathway. Disrupting communication disrupts cell duplication, the foundation of tumor growth.

    Curis has more than 20 trials under way with Genentech/Roche and the National Cancer Institute. This year, Genentech will likely report results of a basal cell carcinoma trial for skin cancer, and it has said it will go from this mid-phase trial directly to an application for approval if the results are strong enough.

    One success means a volcanic eruption in the stock, as it will prove the core technology is a viable platform for cancer treatments. A failure could put the entire program — and the company — in jeopardy. I believe the technology will be a success, which means this $2 stock could be worth $40-plus. If I’m wrong, you will probably be looking at a 50-cent stock. I’d say it’s worth the risk.

Hot Heal Care Companies To Buy For 2014: Radware Ltd.(RDWR)

Radware Ltd. provides application delivery solutions and network security solutions to banks, insurance companies, manufacturing and retail, government agencies, media companies, and service providers worldwide. The company offers AppDirector Intelligent Application Delivery Controller for data center optimization and to eliminate traffic surges, server bottlenecks, connectivity disconnects, and downtime for business continuity; and Alteon Application Switch application delivery controller that supports local, global, and transparent load-balance, multi-homing network load-balance, and bandwidth management capabilities. It also provides AppXML, which offers XML and Web services communications for mission-critical applications; AppWall, a Web application firewall (WAF) appliance that secures Web applications; LinkProof that manages wide area networks and Internet traffic for networks; Content Inspection Director, a smart redirection and dynamic policy enforcement device to meet contemporary carrier needs; and Session Initiation Protocol Director, an application delivery controller for application vendors, telecom equipment manufacturers, and system integrators. In addition, the company offers DefensePro Intrusion Prevention and Denial of Service products that protect against worms, bots, viruses, malicious intrusions, and DOS attacks; Inflight, a hardware device that provides online and network-based monitoring solutions; and APSolute Vision, an appliance-based management and monitoring system for information technology staff to centrally manage distributed devices and check the performance and security of enterprise wide application delivery infrastructures. It markets and sells its products primarily through distributors and resellers in North America, Europe, and Asia, as well as directly to select customers in the United States. Radware Ltd. was founded in 1996 and is headquartered in Tel Aviv, Israel.

Monday, July 29, 2013

Hot Blue Chip Stocks To Invest In Right Now

The Dow Jones Industrial Average (DJINDICES: ^DJI  ) broke through to new record highs today on some strong earnings reports, and good news from the Fed. The blue chips finished the day at 15,549, gaining 76 points, or 0.5%. Earlier in the day, the Dow also set a new intraday-trading record, hitting 15,589.40, while the S&P 500 nearly reached 1,700, setting a new record of its own.

Speaking before the Senate Banking committee today, Fed Chairman Ben Bernanke again shored up concerns that the Fed would act hastily, and put the onus on Congress to do more to focus on reviving the economy rather than cutting the debt.� Investors interpreted his remarks, which followed his comment yesterday that the Fed had no "preset course" in its stimulus taper as evidence that the central bank would not pull the trigger ahead of time.

Hot Blue Chip Stocks To Invest In Right Now: International Business Machines Corporation(IBM)

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

Advisors' Opinion:
  • [By Peter Hughes]

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

  • [By Louis Navellier]

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

  • [By Paul]

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

  • [By Jim Cramer]

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

Hot Blue Chip Stocks To Invest In Right Now: Colgate-Palmolive Company(CL)

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

  • [By ChuckCarlson]

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

  • [By Louis Navellier]

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

  • [By Hesler]

    Colgate-Palmolive Company(NYSE: CL), together with its subsidiaries, manufactures and markets consumer products worldwide. This dividend champion has raised distributions for 48 years in a row and currently yields 2.80%.

Top 5 Value Companies To Own For 2014: McDonald's Corporation(MCD)

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

Advisors' Opinion:
  • [By JON C. OGG]

    McDonald’s Corporation (NYSE: MCD) is at $85.08 and analysts have a consensus price target objective of $97.68.  It carries a 2.9% dividend yield and the stock is down 5% from its 52-week high.  McDonald’s trades at close to 6-times book value, but its return on equity is 37%.  S&P carries an “A” local long-term rating on the Golden Arches.  In the “you gotta eat somewhere” theory, McDonald’s seems to keep winning over and over and its shares and same-store sales keep rising handily.

Hot Blue Chip Stocks To Invest In Right Now: Visa Inc.(V)

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

Advisors' Opinion:
  • [By Ed Carson]

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

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

  • [By Rebecca Lipman]

     Operates retail electronic payments network worldwide. Market cap of $82.48B. EPS growth (5-year CAGR) at 15%. According to Morgan Stanley: "Global penetration of electronic payments remains low with 85% of the world's transactions still cash-based, leaving ample runway to support healthy growth prospects through (at least) 2015."

  • [By Robert Holmes]

    Company Profile: Visa is the global credit card company.

    Share Price: $95.69 (Dec. 6)

    2011 Return: 36%

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

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

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

Sunday, July 28, 2013

Will These Numbers from Marathon Petroleum Be Good Enough for You?

Marathon Petroleum (NYSE: MPC  ) is expected to report Q2 earnings on Aug. 1. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Marathon Petroleum's revenues will grow 14.1% and EPS will contract -21.7%.

The average estimate for revenue is $23.12 billion. On the bottom line, the average EPS estimate is $1.98.

Revenue details
Last quarter, Marathon Petroleum reported revenue of $23.35 billion. GAAP reported sales were 16% higher than the prior-year quarter's $18.89 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, EPS came in at $2.17. GAAP EPS of $2.17 for Q1 were 28% higher than the prior-year quarter's $1.70 per share.

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Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 8.1%, 10 basis points better than the prior-year quarter. Operating margin was 5.3%, 30 basis points better than the prior-year quarter. Net margin was 3.3%, 10 basis points better than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $93.31 billion. The average EPS estimate is $8.11.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 191 members out of 198 rating the stock outperform, and seven members rating it underperform. Among 52 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 52 give Marathon Petroleum a green thumbs-up, and give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Marathon Petroleum is outperform, with an average price target of $88.41.

Is Marathon Petroleum the right energy stock for you? Read about a handful of timely, profit-producing plays on expensive crude in "3 Stocks for $100 Oil." Click here for instant access to this free report.

Add Marathon Petroleum to My Watchlist.

Why the Market Can't Make up Its Mind Today

Blue-chip stocks are mixed in intraday trading following the release of disappointing housing data and downbeat quarterly results from McDonald's (NYSE: MCD  ) . With roughly an hour left in the trading session, the Dow Jones Industrial Average (DJINDICES: ^DJI  ) is up a negligible two points, while the S&P 500 (SNPINDEX: ^GSPC  ) is up by 0.2%.

The National Association of Realtors announced this morning that sales of previously occupied homes fell by 1.1% in June compared to May. On the flip side, the good news is that they were up by a double-digit percentage compared to the same month last year.

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As NAR chief economist Lawrence Yun noted: "Affordability conditions remain favorable in most of the country, and we're still dealing with a large pent-up demand. However, higher mortgage interest rates will bite into high-cost regions of California, Hawaii and the New York City metro area market."

Fast-food giant McDonald's further fueled pessimism by reporting lackluster financial results for the three months ended June 30. While the company increased its revenue and earnings on a year-over-year basis, the market's reaction to the results shows that investors were more concerned with its 0.2% decline in June same-store sales -- for the quarter overall, the worldwide figure rose by a mere 1%.

Shares of McDonald's are down by 2.5% at the time of writing, making it the worst-performing component on the Dow this afternoon.

On the other end of the spectrum, shares of Hewlett-Packard (NYSE: HPQ  ) are up by 1.6%, qualifying it for the day's best performance. Analysts at Wells Fargo said that fears over the company's exposure to the dying personal-computer industry are overdone, noting that the segment accounts for less than 10% of HP's net earnings. The megabank also noted that it expects HP's operating profit to pick up over the next fiscal year.

It's incredible how much our digital and technological lives are shaped by just a handful of companies. Find out "Who Will Win the War Between the 5 Biggest Tech Stocks?" in The Motley Fool's latest free report, which details the knock-down, drag-out battle being waged by the five kings of tech. Click here to keep reading.

Saturday, July 27, 2013

Obama Approves Arms Package for Syria

If there's one thing that spurs defense companies' profits, it's war. And by all accounts, the civil war in Syria is horrific. More than 100,000 people have been killed, 1.8 million have fled, and 4.25 million are displaced. Further, on Thursday, the leader of Syria's Western-backed opposition group told U.S. Secretary of State John Kerry that if the United States doesn't supply the rebels with promised weapons, President Bashar al-Assad's regime would win.  

Assad is known for his human-rights violations, corruption, and disdain for the U.S., but what pushed the Obama administration into promising weapons to Syrian rebels was "conclusive evidence" that Assad's regime used chemical weapons against opposition forces. However, the promise for weapons was made in June, and only recently was a "light armament" package approved. And now there is growing opposition to the United States' involvement in Syria. So, what does this mean for defense companies?

Benefiting from a state of chaos
War is an unfortunate fact of human existence. Some are just, others are not; but regardless, defense contractors benefit from this state of chaos. In fact, war is out-and-out lucrative to defense companies' bottom line.

For example, when North Korea decided to go on its missile-launching venture, South Korea responded by spending $1.6 billion on Boeing's (NYSE: BA  ) attack helicopters, while the U.S. found it needed to beef up missile defense. Those decisions directly benefited Lockheed Martin's (NYSE: LMT  ) Aegis Missile defense system and will probably end up benefiting Northrop Grumman (NYSE: NOC  ) , the prime contractor on the Missile Defense Agency's Joint National Integration Center -- a simulating and war-gaming center -- as well as Boeing's ground-based interceptors, and Raytheon's (NYSE: RTN  ) SM-3, a defense weapon used to destroy incoming ballistic missiles.  

The war in Syria presents similar lucrative opportunities for defense contractors. But it's not defense contractors that make the decision on whether to supply arms. In this case, the decision lies with the president.

To arm, or not to arm, Syria
The problem with arming Syrian rebels is that there's a possibility that such arms could end up in the hands of al-Qaeda-backed groups and other terrorist organizations. One example from last year is the Obama administration's decision to arm Libyan rebels from Qatar. Evidence emerged that Qatar was giving some of those weapons to Islamic militants. Obviously, the decision to arm Libyan rebels didn't turn out as planned. Consequently, the Obama administration, while still approving a Syrian rebel arms package, is approaching this decision with more caution. 

There are a number of senators on both sides of the aisle that have serious concerns about arming Syrian rebels. Sen. Rand Paul (R-Ky.), said: "The president's unilateral decision to arm Syrian rebels is incredibly disturbing, considering what little we know about whom we are arming. Engaging in yet another conflict in the Middle East with no vote or Congressional oversight compounds the severity of this situation." Sen. Chris Murphy (D-Conn.), said: "I'm deeply skeptical about plans for military intervention in Syria, given the dangerously fractured state of the opposition, and the very real risk of American weapons and money falling into the hands of the same terrorist organizations we're already fighting around the world."

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What to watch for
So far, the Obama administration has declined to specify what arms the U.S. will send to Syria. But the White House has described a recently approved arms package as "mostly light weapons," while the rebels have stated their need for anti-tank and anti-aircraft missiles. The good news is Ahmed al-Jarba, the coalition's newly elected president, has publicly rejected an alliance with jihadists and repeatedly stressed his desire to have Syria be a pluralistic democracy. Still, on Thursday, Kerry stated that "there is no military solution" to Syria's civil war and said the only way forward is through political negotiations.  

The newly approved arms package seems to indicate that the U.S. will arm Syrian rebels, but given that the decision is political, a lot could happen between now and delivery. Regardless, this is another example of why defense companies are here to stay. There will always be dictators and corrupt leaders threatening the safety of their, and other nation's, people. Consequently, there will always be a need for weapons, and their makers. As such, defense contractors make a great long-term investment.

Boeing is the biggest defense contractor in the world, and it could make a fantastic long-term investment, considering humans' war-like nature. However, there are things to consider before you invest your hard earned money.  A recent Motley Fool report, "3 Strong Buys for a Global Economic Recovery," outlines three companies, including Boeing, that could take off when the global economy gains steam. Click here to read the full report!

Friday, July 26, 2013

This 'Boring' Stock Has Raised Its Dividend 57 Years In A Row

Boring, for lack of a better word, is good. Boring is right. Boring works.

You could do worse for investment advice than to paraphrase Gordon Gekko in this way. 

Burritos trading at $400-plus a share and a price-to-earnings (P/E) ratio of 37? No thanks. DVDs and streaming content for $260 a share and a P/E of 187? I'll pass. 

No, give me a company that's been doing basically the same thing for 85 years with very little debt, great management, and a dividend that has grown for 57 consecutive years -- over half a century. Those are the types of stocks that make you rich and keep you rich. That's Genuine Parts Co. (NYSE: GPC).

Founded in 1928, Genuine Parts is the leading independent U.S. distributor of automotive replacement parts. Auto parts represent roughly half of the business, with industrial parts accounting for about a third, and wholesale office supplies and electronic materials making up the remainder. If the Genuine Parts name doesn't ring a bell, don't worry. Its NAPA brand and Motion Industries do the heavy lifting for the majority of the business.

NAPA Know-How
To say that Genuine Parts is a well-run company is an understatement. Its long-term debt-to-capital ratio currently sits at barely 17%. Return on equity has averaged nearly 20% over the past 10 years while return on assets has hovered around 10% for the same time period. These are almost unbelievable numbers, but they're the real McCoy.

 

Last year, sales grew more than 4% from $12.4 billion in 2011 to a little more than $13 billion. That number is expected to grow another 9% this year, to $14.2 billion. Free cash flow is also expected to grow 9% this year, to $687 million.

But here's the impressive part: Genuine Parts' auto parts segment represents maybe 5% of the entire U.S. auto parts aftermarket. That's because the $90 billion aftermarket auto parts business in the U.S. is highly fragmented. This gives Genuine Parts an incredible opportunity to capture more share both organically and through acquisition. 

After buying a 30% stake in Australian aftermarket parts distributor Exego Group last year, Genuine Parts acquired the remaining 70% of the company in April of this year. With Exego's annual sales of about $1 billion, analysts expect Genuine Parts' acquisition to accelerate its earnings-per-share growth this year.

100,000 Miles Is The New 50,000
I have always been and, probably always will be a used-car guy. It drives my wife crazy (she's the "new car" person in the household), but I just can't stomach the idea of buying something that immediately loses $5,000 in value the minute you sign the papers. Twenty-five years ago, I wouldn't have dreamed of buying a used car with 100,000 miles or more on the odometer. But most domestic and import cars are better engineered than they were two decades ago. The last two cars I bought had 104,000 miles on them.

     
   
  The NAPA brand makes up much of Genuine Parts' business.  

Top Stocks To Watch Right Now

Now, I did my research and made sure I was buying something that would give me at least another 50,000 to 60,000 miles with little drama. I got my previous car to 190,000-plus miles with no major repairs. It was still running like a top when I traded it in. I plan to do the same with my current ride.

And it seems I'm not alone. According to automotive market research firm R.L. Polk & Co., the average age of the 240.5 million cars and light trucks on U.S. roads is about 10.8 years. Although the weakened economy of recent years might be partly to blame for this statistic, it's clear that Americans are driving their cars longer and buying used cars instead of new. 

Although cars may be better built these days, they still require maintenance and repair. Professional mechanics and do-it-yourselfers alike need belts and clamps and hoses and everything else. And older cars are going to continue to need that kind of stuff.

Ironically, Genuine Parts is officially lumped into the consumer discretionary category. I'm really not sure who determined that aftermarket auto parts were akin to a luxury purchase, but to me, there's a pretty big difference between a can of Fix-A-Flat and leather goods from Coach (NYSE: COH). As far as I'm concerned -- and based on the nation's automotive ownership habits -- Genuine Parts is in the consumer staples business.

Risks to consider: The most noticeable chink in Genuine Parts' armor is its lack of international diversification. The U.S. represents nearly 87% of the company's revenue stream, and Canada contributes about 13%. Mexico, a giant automotive aftermarket opportunity, represents the sliver of a remainder. However, with Genuine Parts' purchase of Exego, it appears the company is addressing that. 

Action to take --> While shares of Genuine Parts may seem expensive at around $82, owning shares still makes sense based on the company's steady, long-term record of growing earnings and dividends. With low debt and a comfortable dividend payout ratio of 48%, the healthy balance sheet helps to ensure the consistent results that investors have grown accustomed to. Look for the stock to approach new highs as the U.S. economy continues to improve slowly and consumers remain value-conscious. A 12-month price target of $98 is attainable; factoring in the 2.6% dividend yield, that's a total return of 22%. Don't be surprised if you get a dividend increase as well.

P.S. -- Rock-solid dividend-paying stocks like GPC are perfect for what we call the "Dividend Trifecta" strategy. Simply put, it's a three-part approach to dividends that multiplies the effectiveness of every dollar you invest. Go here to learn more...

Thursday, July 25, 2013

Best Biotech Companies To Invest In Right Now

From the impact of Obamacare to cutting-edge research, biotech buyouts to FDA decisions, The Motley Fool's health-care team sits down each week�to discuss the most fascinating developments in health care and their implications for long-term investors. In this week's edition, the team talks about The Atlantic's fifth annual Health Care Forum, biotechs in the news, two stocks investors need to watch, and more.

In the segment below, health-care analyst David Williamson explains why Dendreon needs to be on investors radars. It has seen wins for both its competitors, growing U.S. Zytiga sales and a big step toward European approval for Xtandi. With earnings coming this Thursday, May 9, watch and find out what investors should be paying attention to.

Resurgence or dead cat bounce?
Shares of Dendreon have surged in recent months, with the stock gaining new life from the depths of late 2012. Has the company really solved its underlying problems, or are investors setting themselves up for more disappointment? Our new premium research report on Dendreon answers these questions and many more while also outlining just how Dendreon intends to regain its former glory. Claim your copy by clicking here now.

Best Biotech Companies To Invest In Right Now: Tyson Foods Inc.(TSN)

Tyson Foods, Inc., together with its subsidiaries, engages in the production, distribution, and marketing of chicken, beef, pork, and prepared food products, as well as related allied products worldwide. The company?s Chicken segment involves in breeding and raising chickens, as well as processing live chickens into fresh, frozen, and value-added chicken products. Its Beef segment processes live fed cattle and fabricates dressed beef carcasses into primal and sub-primal meat cuts and case-ready products The company?s Pork segment involves in the processing live market hogs; and fabricating pork carcasses into primal and sub-primal cuts and case-ready products. Its Prepared Foods segment manufactures and markets frozen and refrigerated food products comprising pepperoni, bacon, beef and pork pizza toppings, pizza crusts, flour and corn tortilla products, appetizers, prepared meals, ethnic foods, soups, sauces, side dishes, meat dishes, and processed meats. The company mark ets and sells its products to grocery retailers, grocery wholesalers, meat distributors, warehouse club stores, military commissaries, industrial food processing companies, chain restaurants or their distributors, international export companies, and domestic distributors, as well as to foodservice operations, such as plant and school cafeterias, convenience stores, hospitals, and other vendors. Tyson Foods, Inc. also offers its allied products to the manufacturers of pharmaceuticals and technical products, as well as to pork processors. The company was founded in 1935 and is headquartered in Springdale, Arkansas.

Best Biotech Companies To Invest In Right Now: TOTALLY HIP TECHNOLOGIES INC.(THP.V)

Totally Hip Technologies Inc. engages in the development and marketing of interactive Web development technologies primarily in the United States and Canada. The company offers LiveStage Professional software, a QuickTime authoring application with the ability to converge approximately 200 media types to create the interactive digital presentations; LiveSlideShow, an application to create a slideshow to send through email or post on the Internet; HipFlics, which offers an economical mainstream solution for video and audio compression; and WebPainter, a tool for creating Web animations and graphics. It also provides project management, product support, and professional services for businesses and technology professionals. The company primarily sells its products through its online store. Totally Hip Technologies Inc. was founded in 1995 and is based in Vancouver, Canada.

Top Stocks To Own Right Now: PAR Technology Corporation(PAR)

PAR Technology Corporation provides technology solutions to organizations and businesses in the hospitality industry worldwide. The company operates in two segments, Hospitality and Government. The Hospitality segment provides integrated solutions, including hardware and software applications for restaurants, hotels, resorts, and spas to the hospitality industry. It also offers customer support, including field service, installation, 24 hour telephone support, and depot repair. The Government segment performs complex technical studies, analysis, and experiments; develops solutions, and provides on-site engineering in support of advanced defense, security, and aerospace systems. The company, through its subsidiary, PAR Springer-Miller Systems, Inc, provides guest-centric property management solutions to hotels, resorts, spas, casinos, and other hospitality properties. PAR Technology Corporation was founded in 1968 and is headquartered in New Hartford, New York.

Wednesday, July 24, 2013

Hourly Wages Fall Most Since WWII

If you needed a reminder of just how bad the economy still is, then you got it this morning. According to the Bureau of Labor Statistics, the average hourly compensation of nonfarm workers fell on an annualized basis in the first quarter by 3.8%. As the official press release noted (emphasis added), "The decline in the hourly compensation is the largest in the series, which beings in 1947."

The chart below illustrates the quarterly changes in wages since the beginning of 2005. As you can see, on a non-annualized basis, wages fell by 1.33%, roughly in line with the second quarters of 2008 and 2011. As a side note, the historic 3.8% figure is arrived at by projecting the first-quarter decline over the remainder of the year.

These results, combined with a worse-than-expected report on private-sector job gains, go a long way toward explaining why stocks were broadly lower today -- the Dow Jones Industrial Average (DJINDICES: ^DJI  ) and the S&P 500 (SNPINDEX: ^GSPC  ) tumbled.

On a slightly more upbeat note, Hovnanian Enterprises (NYSE: HOV  ) , one of the nation's largest homebuilders, reported fiscal second-quarter earnings. For the three months ended April 30, the company made $1.3 million on $423 million in revenue. While the former figure was slightly smaller than the same quarter last year due to a $27 million gain related to the extinguishment of debt, the top-line revenue figure expanded by an impressive 24%.

The Motley Fool's top stock for 2013
The Motley Fool's chief investment officer has selected his No. 1 stock for the next year. Find out which stock it is in the brand-new free report "The Motley Fool's Top Stock for 2013." Just click here to access the report and find out the name of this under-the-radar company.

Tuesday, July 23, 2013

What Businesses Can Learn From the Case of Ryan Braun

Source: Steve Paluch, via Wikimedia Commons. 

Since 1992, my family has held season tickets for the Milwaukee Brewers. In this state, you bleed green and gold for the Packers, and you spend your summers hoping for a good baseball season. Ryan Braun delivered those seasons for us.

So, embarrassed as it makes me to admit it, I was certain that Major League Baseball had wronged Braun for accusing him of taking steroids. "No one could so passionately deny allegations if they were truly guilty!" I told my friends.

In the end though, naive folks like myself are the ones with egg on our faces. Braun was suspended for the rest of the 2013 season, admitting yesterday that he had "made some mistakes," without actually going into specifics.

Though I think I'll recover soon enough, situations like this remind me that if there's one commodity that can be a gold-standard differentiator, it's trust. And so Ryan Braun's fall from grace offers important lessons on trust that the business world would do well to take note of.

Trust gone awry
The funny thing about trust is that once you earn it, you can make mistakes, and still retain it. We humans so badly want to be able to trust those around us that we're willing to give second chances.

Perhaps no company is a better example of this than Netflix (NASDAQ: NFLX  ) . Before the summer of 2011, Netflix's customer loyalty was through the roof.

Then, the company decided to raise prices by 60% without acknowledging that it was a big deal. This was followed shortly thereafter by the embarrassing Qwikster fiasco. Subscribers left in droves, and the stock absolutely plunged.

But fast-forward two years, and subscriber counts are higher than they've ever been, and the stock has recovered quite nicely.

How was Netflix able to do that?

Beyond the fact that it is executing its core business plans and has started making original content, CEO Reed Hastings openly admitted to his mistakes, and went about fixing them. But Hastings also didn't commit the most grievous sin of them all.

Break this rule, and there's no going back
There's one rule about trust that can never be broken without abandoning hope of forgiveness: You cannot, under any circumstances, lie about the mistakes you've made. If you're ever found out, you're done.

Lance Armstrong is the poster boy for this in athletics, but in the financial world, I think there's an even more sinister villain: Bernie Madoff.

Anyone who takes the time to really delve into Madoff's story might be surprised by what they find. His Ponzi scheme wasn't actually set up to financially benefit himself. It was, instead, the product of one mistake, compounded exponentially by millions of lies.

Madoff started investing money -- mostly from family and friends -- because he thought he'd be good at it. Allegedly, things were going just fine until 1987, when he started running out of arbitrage opportunities. When the market crashed and folks started calling for their cash, Madoff began falsifying his returns.

Back then, the assets he was handling weren't that big. But once word got out that Madoff could spin a profit, even in down times, billions of dollars were handed over.

Had Madoff come clean back in 1987, his investors might have been angry that he had a down year, but eventually, they would've gotten over it. Instead, Madoff began lying... and lying... and lying, until the lie could no longer be kept secret. Exploiting others' trust like that is as close to unforgivable as you get in finance.

Companies that get it
Fortunately, there are companies and leaders out there that understand the importance of immediately owning up to mistakes.

Johnson & Johnson (NYSE: JNJ  )  is one of the most trusted brands in medicine. That might not be the case if the company hadn't quickly pulled Tylenol off the shelf in 1982 when seven people died after ingesting cyanide-laced pills.

Even today, Johnson & Johnson deals with recall issues. The company has been forced to recall 40 different products since 2009. These incidents cost the company billions of dollars, but there's no price you can put on trust. While recalls force a momentary hiccup in revenue, a loss of consumer trust would be a deathblow for J&J.

Or take a look at Warren Buffett. When he announced that David Sokol would no longer be a manager at Berkshire Hathaway (NYSE: BRK-A  ) (NYSE: BRK-B  ) , he also quickly let it be known that Sokol was involved in some shady trades surrounding the company's purchase of Lubrizol.

As Buffett came to know more about the Sokol affair, he was an open book. And for that, investors were willing to quickly forgive and forget the situation.

No matter the circumstances, the lesson is clear: To err is human and forgivable; to lie about your errors, a much more grievous offense.

If you want to read up about one company with leadership we believe you can trust, I suggest you read our free report: "The One REMARKABLE Stock to Own Now." Just click here to get started.


Monday, July 22, 2013

Will a Regulatory Crackdown Slam the Brakes on Fee Income at Banks?

The Consumer Financial Protection Bureau and leading research groups like the Pew Institute have recently released reports citing wide inconsistencies and seemingly unfair practices among some banks' overdraft and fee policies.

With regulators circling, now is the time for banks to proactively find ways to improve consumer practices without sacrificing opportunities to profit. 

In the video below, Motley Fool contributor Jay Jenkins highlights three banks that are ahead of the curve: Citigroup (NYSE: C  ) , Bank of America (NYSE: BAC  ) , and Capital One's (NYSE: COF  ) 360 product (originally developed by ING U.S. (NYSE: VOYA  ) ).

Many investors are terrified about investing in big banking stocks after the crash, but the sector has one notable stand-out. In a sea of mismanaged and dangerous peers, it rises above as "The Only Big Bank Built to Last." You can uncover the top pick that Warren Buffett loves in The Motley Fool's new report. It's free, so click here to access it now.

Sunday, July 21, 2013

Top 5 Oil Stocks To Invest In 2014

U.S. crude oil supplies fell 300,000 barrels (0.08%)�for the week ending May 17, according to an Energy Information Administration (EIA) report (link opens in PDF) released today.

After dropping 600,000 barrels the previous week, weaker domestic production�proved enough to offset a 507,000 barrel per day (bpd) increase in imports.

While inventories continued to drop for the second straight week, supplies remained 1.1% above the same time last year, and are "well above the upper limit of the average range for this time of year," according to the EIA.

Source: eia.gov.

While oil inventories headed down, total motor gasoline supplies increased by 3 million barrels last week and are "near the upper limit of the average range." Gasoline demand's four-week moving average remains weak, 3.3% below the same period last year.

Top 5 Oil Stocks To Invest In 2014: Devon Energy Corporation(DVN)

Devon Energy Corporation, together with its subsidiaries, engages in the acquisition, exploration, development, and production of natural gas and oil in the United States and Canada. It also involves in transporting oil, gas, and natural gas liquids (NGL); and processing natural gas. The company owns oil and gas properties in the mid-continent area of the central and southern United States; the Permian Basin in Texas and New Mexico; the Rocky Mountains area of the United States; and the onshore areas of the Gulf Coast, principally in south Texas and south Louisiana. It also owns oil and gas properties in the provinces of Alberta, British Columbia, and Saskatchewan, Canada. In addition, the company offers marketing and midstream services, including marketing of gas, crude oil, and NGL, as well as constructing and operating pipelines, storage and treating facilities, and natural gas processing plants. As of December 31, 2010, it had 2,042 million barrel of oil equivalent of proved developed reserves. The company sells its gas production to various customers, such as pipelines, utilities, gas marketing firms, industrial users, and local distribution companies; crude oil production to refiners, remarketers, and other companies; and NGL production to customers in petrochemical, refining, and heavy oil blending activities. Devon Energy Corporation was founded in 1971 and is headquartered in Oklahoma City, Oklahoma.

Advisors' Opinion:
  • [By ChemTrade]

    Devon Energy Corporation (NYSE:DVN): Down 2.71% to $55.37. Devon Energy Corporation is an independent energy company that is involved primarily in oil and gas exploration, development and production, the transportation of oil, gas, and NGLs and the processing of natural gas. The Company also has marketing and midstream operations primarily in North America that include gas, crude oil and NGLs.

  • [By McWillams]

    Oklahoma-based Devon Energy(DVN) is an analyst favorite, receiving 21 "buy" ratings and nine "hold" calls, but no "sell" rankings.

    Devon explores for and produces natural gas and oil. Its stock has run up 33% in the past three months, fulfilling Jefferies' thesis. Now, it has just 3% of upside before passing the bank's price target. It might be best to wait for a pullback before buying Devon. But, most-bullish Macquarie, an Australian investment bank with a focus on energy companies, expects Devon's stock to advance another 14% to $98 in 12 months.

    Devon's business is largely focused on natural gas, with two-thirds of sales from that commodity and the other third coming from oil and natural gas liquids. It also owns gas pipelines and treatment facilities.

    Natural gas is domestically abundant. In fact, some geologists estimate that North America houses the richest natural gas deposits. For this reason, businessmen, such as T. Boone Pickens, think using this resource is critical to energy independence.

    The downside is that recent shale discoveries have expanded supply and dampened the commodity's pricing. Devon has been repositioning itself as an onshore North America gas company. Consequently, it has been divesting international assets and using the proceeds to lessen its float. In the third quarter, shares outstanding dropped 3% to 432 million.

Top 5 Oil Stocks To Invest In 2014: Archer Ltd (ARCHER)

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

Best Stocks To Invest In Right Now: Exxon Mobil Corporation(XOM)

Exxon Mobil Corporation engages in the exploration and production of crude oil and natural gas, and manufacture of petroleum products, as well as transportation and sale of crude oil, natural gas, and petroleum products. The company manufactures and markets commodity petrochemicals, including olefins, aromatics, polyethylene and polypropylene plastics, and other specialty products. As of December 31, 2010, it operated 35,691 gross and 30,494 net operated wells. The company has operations in the United States, Canada/South America, Europe, Africa, Asia, and Australia/Oceania. Exxon Mobil Corporation was founded in 1870 and is based in Irving, Texas.

Advisors' Opinion:
  • [By Stephen Faulkner]

    What keeps running around the headlines? What do you see when you fill up your tank 1, 2, 3 times a week? That would be rising fuel prices. As fuel prices go up, typically the companies which are in the business of selling that fuel, go up. Exxon Mobil is huge, running a $406.9 billion market cap. Solid earnings and low debt relative to income add to the attractive qualities of this stock. The days of "cheap gas" are behind us, and Exxon Mobil stands to appreciate as demand outstrips supply.

    Exxon Mobil has been trading around $85 for most of 2012 and currently sits at $86.33. As gas prices increase I expect share price to appreciate and head towards $100 per share, representing a 16% upside. Dividend payment is currently $0.47 per share, paid quarterly.

  • [By Daniel Dicker]

    Of the biggest four or five multinational integrated oil companies, my favorite remains Exxon Mobil(XOM).

    The company's dominance will pay off if natural gas finally finds a floor and Exxon's stock buybacks and steady dividend make it the oil stock for pure buy-and-holders.

  • [By Dave Friedman]

    Institutional investors bought 79,917,190 shares and sold 113,327,900 shares, for a net of -33,410,710 shares. This net represents 0.68% of common shares outstanding. The number of shares outstanding is 4,885,000,000. The shares recently traded at $72.64 and the company’s market capitalization is $353,184,000,000.00. About the company: Exxon Mobil Corporation operates petroleum and petrochemicals businesses on a worldwide basis. The Company’s operations include exploration and production of oil and gas, electric power generation, and coal and minerals operations. Exxon Mobil also manufactures and markets fuels, lubricants, and chemicals.

Top 5 Oil Stocks To Invest In 2014: Worthington Energy Inc (WGAS)

Worthington Energy, Inc. (Worthington), formerly Paxton Energy, Inc., incorporated July 30, 2004, is an oil and gas exploration and production company with assets in Texas and in the Gulf of Mexico. Worthington�� assets in Texas consist of a minority working interest in limited production and drilling prospects in the Cooke Ranch area of La Salle County, Texas, and Jefferson County, Texas, all operated by Bayshore Exploration L.L.C. (Bayshore). The Company�� assets in the Gulf of Mexico consist of a leasehold working interests in certain oil and gas leases located offshore from Louisiana, upon which no drilling or production has commenced as of December 31, 2011, and a 10.35% interest in the recently drilled I-1 well and a 2% royalty interest in 14,400 acres in the Mustang Island Tract 818. On March 27, 2012, it acquired certain assets from Black Cat Exploration & Production, LLC.

In Texas, the Company has working interests ranging from 4% to 31.75% (net revenue interests ranging from 3% to 23.8125%) in the various wells. In the Gulf of Mexico it has a 70% leasehold working interest, with a net revenue interest of 51.975%, of certain oil and gas leases in the Vermillion 179 tract and 10.35% interest in the recently drilled I-1 well and a 2% royalty interest in 14,400 acres in the Mustang Island Tract 818. As of December 31, 2011, it had one producing well that generated average total monthly net revenue.

The Mustang Island 818-L Field, located in the Kleberg County waters of the Gulf of Mexico, is a field re-habilitation project targeting bypassed or only partially produced gas-condensate. Total production from the wells within the seismic coverage was 125.6 billion cubic feet. In January 2011, the Hercules Offshore 205 jack-up rig was contracted to re-enter the I-Well on the Mustang License Area. The oil and gas leases are located in the VM 179, which is in the shallow waters of the Gulf of Mexico offshore from Louisiana. VM 179 is at 85 inches water depth approximately ! 46 miles offshore Louisiana in the Gulf of Mexico.

Top 5 Oil Stocks To Invest In 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.

Saturday, July 20, 2013

Top 5 Tech Companies To Buy Right Now

I went out on a limb last week, and now it's time to see how that decision played out.

I predicted that BlackBerry (NASDAQ: BBRY  ) would close lower on the week. The hype that's been building for months surrounding the domestic launch of the Z10 hasn't matched the reality now that the country's two largest carriers have the new BlackBerry device available. Still, the stock rallied earlier in the week, holding on to enough of those gains to close out the week 1.7% higher. I was wrong. I predicted that the tech-heavy Nasdaq would outperform the Dow Jones Industrial Average. (DJINDICES: ^DJI  ) . This has been a tricky call lately, so how did it play out this time? Well, it didn't. The Nasdaq got blasted for a 1.9% hit, and the Dow managed to close barely unchanged, with only a marginal downtick. I was wrong. My final call was for Conn's (NASDAQ: CONN  ) to beat Wall Street's quarterly profit target. The consumer-electronics retailer has been able to sidestep the stagnancy taking place at larger chains because Conn's offers larger items, including mattresses and lawn-maintenance equipment, that can't be easily replaced online. The company also has been beating Wall Street estimates consistently over the past year. Analysts were looking for a profit of $0.55 a share during the quarter, and it came through with net income of $0.54. I was wrong.

I missed on all three. That doesn't happen often, and I know I can do better. So let me once again whip out my trusty, dusty, and occasionally accurate crystal ball to make three calls that may play out over the next few trading days.

Top 5 Tech Companies To Buy Right Now: inmarsat ord eur0.0005(ISAT.L)

Inmarsat plc provides mobile satellite communications services for use on land, at sea, and in the air worldwide. The company offers fixed, portable, and vehicular voice and broadband data services, which enable access to office-based applications, such as email, Internet, or VPN access, as well as other applications, including videoconferencing, telemedicine, or live broadcasting. It also provides low data rate messaging, tracking, and monitoring for fixed or mobile assets; and mobile voice communications or fixed-line solutions offering connectivity for areas outside of cellular coverage. In addition, the company offers maritime broadband data and voice services; voice, fax, and data communications for both ocean-going and coastal vessels; maritime satellite phone services for use on smaller vessels; satellite communications services for global maritime distress and safety system; and crew calling services for vessel operators and shipowners. Further, it provides voice a nd data communications services for cockpit, cabin, operational, and in-flight data applications, such as voice, email, Internet and intranet access, large file transfer, and videoconferencing; and aeronautical services that support voice, data, and safety communications used by airlines and corporate jet operators. Additionally, the company offers mobile and fixed-site remote telecommunications services; turnkey remote telecommunications solutions; value-added services; and equipment and engineering services, as well as provides technical support to other operators, conference facilities, and office space leasing. It owns and operates a fleet of 11 geostationary satellites. The company provides its services through third party distribution partners and service providers. It serves the oil and gas, construction, media, aviation, maritime, utilities, mining, aid, and transportation sectors. Inmarsat plc was founded in 1979 and is headquartered in London, the United Kingdom.

Top 5 Tech Companies To Buy Right Now: Multiband Corporation(MBND)

Multiband Corporation, together with its subsidiaries, provides contract installation services; voice, data, and video services; and design, engineering, and construction services in the United States. The company operates through three segments: Field Services (FS); Multi-Dwelling Unit (MDU); and Engineering, Energy & Construction (EE&C). The FS segment engages in the installation and servicing of DIRECTV video programming for residents of single family homes. It also offers installation services for broadband cable and Internet providers, and commercial customers. The MDU segment serves as a master service operator for DirecTV, a provider of satellite television services. It offers satellite television services to residents of multi-dwelling-units through a network of affiliated operators. As of March 15, 2012, this segment had approximately 112,000 owned and managed subscribers, with an additional 45,000 subscribers supported by the support center. The EE&C segment prov ides engineering and construction services for the wired and wireless telecommunications industry, including public safety networks. This segment also offers renewable energy services comprising wind and solar applications and other design and construction services. The company was formerly known as Vicom, Incorporated and changed its name to Multiband Corporation in July 2004. Multiband Corporation was founded in 1933 and is based in New Hope, Minnesota.

10 Best Stocks To Invest In Right Now: ADTRAN Inc.(ADTN)

ADTRAN, Inc. designs, manufactures, markets, and services communications network solutions that enable voice, data, video, and Internet communications across wireline and wireless networks worldwide. Its Carrier Networks division provides fiber and copper-based solutions for service providers to deliver voice, data, and video services to customers? premises and mobile network cell sites. Its products enable services, such as voice, VoIP, IP television, RF video, high speed Internet access, and data services based upon Ethernet, frame relay, TDM, and ATM networks, connecting the network with user components, such as switches, routers, gateways, integrated access devices (IADs), private branch exchanges (PBXs), and telephone key systems. This division serves local exchange carriers, independent operating companies, competitive local exchange carriers, utilities, municipalities, cable MSOs, international carriers, and wireless service providers. The company?s Enterprise Net works division provides Internetworking solutions for enterprise customers to construct voice, data, and video networks within their sites or among distributed sites. It offers Internetworking solutions, including IP business gateways, optical network terminals, virtual wireless LAN products, multi-service routers, managed Ethernet switches, IP PBX products, IP phone products, unified communications and unified threat management solutions, and carrier Ethernet network terminating equipment, as well as provides IADs. This division serves the retail, food service, healthcare, finance, government, education, manufacturing, military, transportation, hospitality, and energy/utility markets. ADTRAN, Inc. also provides digital data service and integrated services digital network products, high bit-rate digital subscriber line products, T1/E1/T3, channel service units/data service units, and fixed wireless products. The company was founded in 1985 and is headquartered in Huntsville, Alabama.

Top 5 Tech Companies To Buy Right Now: Ace Achieve Infocom Limited (A75.SI)

Ace Achieve Infocom Limited, an investment holding company, engages in the design and development of telecommunication solutions and products for telecommunication networks primarily in the People's Republic of China. It provides telecom application solutions, wireless coverage solutions, operation support and business support systems, and broadband data products. The company also offers proprietary information security platform and end-user mobile platform for small-and-medium enterprises. Ace Achieve Infocom Limited provides its solutions and products to telecommunication networks, including fixed line, GSM, TD-SCDMA, CDMA, CDMA2000, and PHS. The company was founded in 2000 and is based in Beijing, the People�s Republic of China. Ace Achieve Infocom Limited is a subsidiary of CIMB Securities (Singapore) Pte Ltd.

Top 5 Tech Companies To Buy Right Now: LRAD Corporation(LRAD)

LRAD Corporation engages in the design, development, and commercialization of directed sound technologies and products in North America, Europe, the Middle East, and Asia. The company develops and delivers directed acoustic products that beam, focus, and control sound over short and long distances. It offers Long Range Acoustic Device, which creates directed acoustic beam to communicate at operational ranges in high ambient noise environments, primarily for military applications. The company also provides SoundSaber thin film magnetic speaker technology that provides high clarity throughout the audio range for emergency and mass notification, public address, and other sound applications. Its SoundSaber hardened panels are used in acoustic environments, such as hangar bays, industrial buildings, airports, and other facilities. LRAD Corporation sells its products directly to government, military, large end-users, and defense-related companies. The company was formerly known as American Technology Corporation and changed its name to LRAD Corporation in March 2010. LRAD Corporation was founded in 1980 and is based in San Diego, California.

Friday, July 19, 2013

Top 10 Clean Energy Stocks To Own Right Now

The new U.S. Secretary of Energy, Ernest Moniz, is clearly a believer that the country absolutely must become more self-sufficient with the nation's energy supplies. He recently outlined three points of focus in order to make this a reality: increase our efficiency, electrify our transportation sector, and utilize alternative fuels.

In the following video, Motley Fool energy analysts provide you with details on a variety of companies that are already addressing these issues, and offer reasons why they might be worth consideration for your investment portfolio.�

One such company has been attempting to capitalize on the the movement toward alternative energy as it continues gaining momentum. This potential opportunity in this field is Clean Energy Fuels, which focuses its natural gas efforts primarily on trucking and fleet vehicles. It's poised to make a big impact on an essential industry. Learn everything you need to know about Clean Energy Fuels in The Motley Fool's premium research report on the company. Just click here now to claim your copy today.

Top 10 Clean Energy Stocks To Own Right Now: Home Properties Inc. (HME)

Home Properties, Inc. is an independent real estate investment trust. The firm invests in the real estate markets of the United States. It is engaged in the ownership, management, acquisition, rehabilitation and development of residential apartment communities. The firm also invests in townhomes and offices. Home Properties, Inc. was founded in November 1993 and is based in Rochester, New York.

Top 10 Clean Energy Stocks To Own Right Now: Transamerica Income Shares Inc.(TAI)

Transamerica Income Shares Inc. is a close ended fixed income mutual fund launched and managed by Transamerica Asset Management, Inc. It is co-managed by AEGON USA Investment Management, LLC. The fund invests in fixed income markets. Transamerica Income Shares Inc. is domiciled in United States.

5 Best Stocks To Own Right Now: Beale(BAE.L)

Beale PLC, together with its subsidiaries, operates department stores in the United Kingdom. The company offers branded, functional, and aspirational merchandise for men, women, and home. Its stores provide women?s wear, men?s wear, toys for kids, and electrical products, as well as various accessories, gift products, home products, and beauty products. The company operates 11 stores under the Beales brand name in Bedford, Bournemouth, Horsham, Kendal, Poole, Tonbridge, Winchester, and Worthing; Broadbents & Boothroyds brand name in Southport; Denners brand name in Yeovil; and Whitakers brand name in Bolton. Beale PLC was founded in 1881 and is based in Bournemouth, the United Kingdom.

Top 10 Clean Energy Stocks To Own Right Now: Rpc Grp(RPC.L)

RPC Group Plc engages in the manufacture and sale of rigid plastic packaging and associated equipment primarily in the United Kingdom, Germany, France, the United States, and Mainland Europe. The company?s product range comprises various forms of rigid packaging that include injection molded packs, thermoformed packs, sheet and extrusion blow-molded packs, and injection-blown and injection-stretch-blown packs. It offers injection molding products for the paint and surface coatings, DIY products, soups and sauces, food, margarine and spreads, edible fats, promotional products, personal care, healthcare and pharmaceutical, cosmetics, tablet dispensers and inhaler devices, food packaging, and coffee capsules markets; and thermo forging products for the margarine and spreads, ready meals, baby food, barrier containers, vending and drinking cups, coffee capsules, dairy, disposable products, phone cards, and form-fill-seal lines, as well as fresh, frozen, and long shelf-life fo ods markets. In addition, RPC Group Plc provides blow molding products for the personal care, automotive, agrochemicals, and food and drinks markets. It serves customers ranging from large multinational companies to local small and medium sized enterprises. The company is based in Rushden, the United Kingdom.

Top 10 Clean Energy Stocks To Own Right Now: Patriot National Bancorp Inc.(PNBK)

Patriot National Bancorp, Inc. operates as the bank holding company for Patriot National Bank that provides consumer and commercial banking services to individuals, small and medium-sized businesses, and professionals in Connecticut and New York. It offers various consumer and commercial deposit accounts, such as checking accounts, interest-bearing NOW accounts, insured money market accounts, time certificates of deposit, savings accounts, individual retirement accounts, and health savings accounts. The company also provides commercial loans, including secured and unsecured loans to service companies, real estate developers, manufacturers, restaurants, wholesalers, retailers, and professionals, as well as to small and medium-sized businesses; personal loans, such as lines of credit, installment loans, overdraft protection, and credit cards; real estate loans, including home mortgages, home improvement loans, bridge loans, home equity loans, and lines of credit to individua ls; and commercial real estate and construction loans to area businesses and developers. In addition, it offers Internet banking, bill paying, remote deposit capture, debit card, money order, traveler?s checks, and automated teller machine services; and solicits and processes mortgage loan applications from consumers on behalf of permanent investors and originates loans for sale. As of June 20, 2011, the company operated 15 full service branches, including 12 branches in Connecticut and 3 branches in New York, as well as a loan production office in Stamford, Connecticut. Patriot National Bancorp, Inc. was founded in 1994 and is headquartered in Stamford, Connecticut. Patriot National Bancorp Inc. is a subsidiary of PNBK Holdings LLC.

Top 10 Clean Energy Stocks To Own Right Now: Biox Corp(BX.TO)

BIOX Corporation, a renewable energy company, engages in the design, building, ownership, and operation of a biodiesel production facility in Canada. It produces biodiesel from various feedstock, including recycled vegetable oils, agricultural seed oils, yellow greases, and tallow. The company was incorporated in 2000 and is headquartered in Oakville, Canada.

Top 10 Clean Energy Stocks To Own Right Now: Angle Energy Inc He Co.] (NGL.TO)

Angle Energy Inc. engages in the exploration, exploitation, development, and production of oil and natural gas reserves in Western Canada Sedimentary Basin, Canada. The company focuses on the recovery of liquids-rich natural gas and light crude oil. It owns interests in various properties located in the areas of Harmattan, Ferrier, Edson, and Lone Pine Creek in Alberta. As of December 31, 2011, the company had proved plus probable reserves of 18,575 thousand barrels of oil equivalent; and controlled 88,318 net acres of land. Angle Energy Inc. was founded in 2004 and is headquartered in Calgary, Canada.

Top 10 Clean Energy Stocks To Own Right Now: East West Bancorp Inc.(EWBC)

East West Bancorp, Inc. operates as the holding company for East West Bank, which provides a range of personal and commercial banking services to small and medium-sized businesses, business executives, professionals, and other individuals in California. It offers various deposit products, including personal and business checking and savings accounts, time deposits and individual retirement accounts, travelers? checks, safe deposit boxes, and MasterCard and Visa merchant deposit services. The company?s lending activities include commercial, multifamily residential real estate, trade finance, accounts receivable, small business administration, inventory, and working capital loans, as well as commercial real estate, construction, and single-family residential real estate loans. In addition, it provides financing to facilitate its clients? business transactions between Asia and the United States. Further, the company, through its other subsidiary, East West Insurance Servic es, Inc., offers business and consumer insurance services to the southern California market. As of October 19, 2011, it operated through a network of 130 locations worldwide. The company was founded in 1998 and is headquartered in Pasadena, California.

Top 10 Clean Energy Stocks To Own Right Now: Ass Br Engineering(ASBE.L)

Associated British Engineering plc, through its subsidiary, British Polar Engines Limited, engages in diesel and related engineering activities in the United Kingdom and internationally. The company involves in the manufacture and supply of diesel engines and spare parts. It also provides repair works for diesel engines. The company is based in Cambridge, the United Kingdom.

Top 10 Clean Energy Stocks To Own Right Now: Marifil Mines Limited (MFM.V)

Marifil Mines Ltd. engages in the acquisition, exploration, and evaluation of mineral resource properties in Argentina. It explores for silver, gold, copper, nickel, limestone, potash, sulfur, zinc, lithium, lead, indium, platinum, cobalt, uranium, and base metals, as well as for oil and gas in Rio Negro, San Luis, Chubut, Neuquen, Mendoza, Salta, Santa Cruz, and Catamarca provinces. The company was incorporated in 2003 and is based in Vancouver, Canada.

Thursday, July 18, 2013

Best Casino Stocks To Watch For 2014

Pinnacle Entertainment (NYSE: PNK  ) has reached an agreement in principle with the Bureau of Competition of the Federal Trade Commission that would allow the company to complete its proposed acquisition of Ameristar Casinos (NASDAQ: ASCA  ) , Pinnacle announced today.

Late last month, the FTC issued an administrative complaint saying Pinnacle's proposed $2.8 billion acquisition of competing casino operator Ameristar would violate antitrust law. According to the FTC's announcement at the time of its challenge, an administrative complaint is issued "when it has 'reason to believe' that the law has been or is being violated."

Pinnacle and Ameristar have casinos which directly compete in the St. Louis area and the Lake Charles, La., area. The FTC alleged consumers in those areas would be affected by higher prices and lower quality with the lack of competition.

Best Casino Stocks To Watch For 2014: MGM Resorts International(MGM)

MGM Resorts International, through its subsidiaries, primarily owns and operates casino resorts in the United States. The company?s resorts offer gaming, hotel, dining, entertainment, retail, and other resort amenities. It also owns and operates golf courses and a golf club. As of December 31, 2010, the company owned and operated 15 properties located in Nevada, Mississippi, and Michigan; and has 50% investments in 4 other casino resorts in Nevada, Illinois, and Macau. In addition, MGM Resorts International has an agreement with the Mashantucket Pequot Tribal Nation, which owns and operates a casino resort in Connecticut, to carry the ?MGM Grand? brand name. The company was formerly known as MGM MIRAGE and changed its name to MGM Resorts International in June 2010. MGM Resorts International was founded in 1986 and is based in Las Vegas, Nevada.

Advisors' Opinion:
  • [By Goodwin]

    MGM Resorts International(MGM) has the most exposure to the Las Vegas market, making it a bet only for those with thick skin.

    For the second quarter, the casino operator lost $883.5 million, or $2 a share, compared with a loss of $212.5 million, or 60 cents, in the year-ago period.

    A majority of the loss was attributed to a $1.12 billion writedown on its investment in CityCenter in Las Vegas. This is the third time MGM has had to write down CityCenter, as the casino has seen little improvement in operating profit since it opened in December. The $8.5 billion development took a loss of $128 million.

    Excluding this writedown, MGM actually lost 35 cents a share, still significantly more than analysts estimates of a 24-cent loss. MGM's revenue rose 3% to $1.54 billion from $1.49 billion, ahead of analysts' estimates of $1.46 billion.

    Revenue-per-available room on the Las Vegas Strip decreased 2%, although Bellagio and MGM Grand showed improvement, the company said. Occupancy levels slipped to 93% from 94% while the average daily rate fell a dollar to $110. "The Las Vegas operating environment remains difficult, but as we expected, we are seeing a gradual recovery," Chief Executive Officer Jim Murren said in a statement.

    Some of MGM's losses in Las Vegas were offset by its joint venture in Macau with Pansy Ho. MGM Macau earned $40 million, compared with a loss of $8 million last year

    Outside of Vegas, MGM said last week that it agreed to sell land from its Borgata hotel in Atlantic City for $73 million to Vornado Realty Trust and Geyser Holdings. The Borgata land, which is co-owned with Boyd Gaming(BYD), is about 11.3 acres, which would translate into about $6.5 million per acre.

    The transaction still needs to be approved by New Jersey regulators, and is expected to close by the fourth quarter. Once this transaction is complete, MGM will still own about 85 acres of developable land in Atlantic City.

    Earlier in the year, MGM said it planned t! o divest its 50% stake in the Atlantic City casino, which is currently in trust. The casino operator is still in talks with potential buyers of Borgata casino, and hotel and investors will be waiting for an update on its progress when second-quarter earnings are released.

    "We view this [deal] as a very modest positive in that there are still buyers of Atlantic City assets out there, at least at the right price," J.P. Morgan analyst Joseph Greff wrote in a note. "We don't necessarily interpret [the] news as any indication that MGM is closer to selling its 50% stake in Borgata."

  • [By Hawkinvest]

    MGM Resorts International (MGM) is one of the world's largest hotel and casino companies, based in Las Vegas. Since December, MGM shares have been trading in a range of about $9, to almost $15 per share. The stock is now at the upper limit of the recent trading range which means that the risk of holding or buying this stock right now, could be elevated. MGM shares have rallied with the markets but appear extended and vulnerable to a sell-off. The company has a heavy debt load and it has been reporting losses. The balance sheet has about $13.45 billion in debt and only about $1.97 billion in cash. MGM could be impacted by higher oil prices because many consumers could cut back on spending if they go to Las Vegas, and some might decide not to go at all, and instead opt for a "staycation." With MGM facing challenges and the shares near recent highs, it could make sen se to sell now and buy on dips later this year.

    Here are some key points for MGM:

    Current share price: $14.18

    The 52 week range is $7.40 to $16.05

    Earnings estimates for 2011: a loss of 53 cents per share

    Earnings estimates for 2012: a loss of 39 cents per share

    Annual dividend: none

Best Casino Stocks To Watch For 2014: Boyd Gaming Corporation(BYD)

Boyd Gaming Corporation, together with its subsidiaries, operates as a multi-jurisdictional gaming company in the United States. As of December 31, 2011, the company owned and operated 1,042,787 square feet of casino space, containing approximately 25,973 slot machines, 655 table games, and 11,418 hotel rooms. It also owned and operated 16 gaming entertainment properties located in Nevada, Illinois, Louisiana, Mississippi, Indiana, and New Jersey. In addition, the company owns and operates a pari-mutuel jai-alai facility located in Dania Beach, Florida, as well as a travel agency in Hawaii. Further, it holds a 50% controlling interest in the limited liability company that operates Borgata Hotel Casino and Spa in Atlantic City, New Jersey. Boyd Gaming Corporation was founded in 1988 and is headquartered in Las Vegas, Nevada.

Advisors' Opinion:
  • [By Jeanine Poggi]

    The Las Vegas locals and Atlantic City markets have the longest road to recovery, making Boyd Gaming (BYD) one of the most challenged stocks in the sector long-term.

    It's not a surprise then that Boyd saw some of the most muted gains in 2010, with shares rising just 13.8% since the beginning of the year.

    In Atlantic City, where Boyd owns a 50% stake in the Borgata, gambling revenue plunged 13% in November. The New Jersey Boardwalk has been under pressure even before the recession began, as nearby regions expand their gaming presence.

    Both West Virginia and Pennsylvania added table games to casinos in the second half of the year and new properties opened in Philadelphia and Maryland. In 2011, Atlantic City will also have to contend with additional growth in Pennsylvania and the pending opening of the Aqueduct in New York City.

    Given this, Boyd decided not to exercise its right to match a $250 million offer MGM Resorts(MGM) received for its 50% stake in the Borgata. MGM decided to divest its joint venture with Boyd after the Atlantic City Gaming Commission criticized its relationship with Pansy Ho in Macau, whose family has allegedly been tied to organized crime in China.

    In the Las Vegas locals market, where Boyd generates about 44% of its EBITDA, trends are improving, but not as quickly as analysts would have hoped. In October, gaming revenue in the market grew 6.2% to $169.4 million.

    In its third quarter, Boyd disappointed Wall Street, with adjusted earnings coming in at 2 cents a share, shy of consensus estimates of 5 cents. Revenue dropped 4% to $595.4 million.

    Boyd also announced plans to sell $500 million of eight-year notes. Proceeds will be used to buy back senior subordinated notes due 2012 and to repay bank loans.

  • [By Hesler]

    Boyd Gaming(BYD) posted a bigger-than-expected drop in its second-quarter earnings, citing weak performance in Las Vegas, the Midwest and the South.

    During the quarter, the casino operator earned $3.4 million, or 4 cents a share, a 73% plunge from $12.8 million, or 15 cents, in the year-ago period. Adjusted earnings came in at 5 cents a share, significantly lower than the 10 cents Wall Street predicted for Boyd.

    Boyd's revenue fell 6% to $578.4 million, also short of the consensus of $588 million.

    "The lingering effects of the recession have left consumers unusually sensitive to shifts in the economy, and they now react more quickly to economic data and other developments, such as fluctuations in the stock market," said CEO Keith Smith, in a statement. "Although conditions remain uncertain, we believe long-term stabilizing trends are still in place, and that year-over-year growth is achievable by the end of 2010."

    In the Las Vegas locals market, the rate of decline in earnings before interest, taxes, depreciation and amortization rose to 16.2% from 10.8%, J.P. Morgan analyst Joseph Greff wrote in a note. Boyd previously reported a 9.9% decline for its Borgata property in Atlantic City. Revenue came in at $186.9 million, a 2.4% decrease from the year-ago period.

    "We think second-quarter results are less important than the coming operating results in the second-half of 2010, when the Atlantic City market faces increased regional competitive pressures from tables in Pennsylvania and West Virginia and the first Philadelphia casino opens this summer," J.P. Morgan analyst Joseph Greff wrote in a note.

    Greff reaffirmed his underweight rating on Boyd, given increasing competition in Atlantic City, a weak recovery in the Las Vegas locals market and stagnant regional gaming trends.

    While there is no doubt the Atlantic City gaming market remains one of the most depressed, Borgata continues to dominate the market and gain share. Atlant! ic City saw gaming revenues plunge 11.1% in June to $286.8 million. Boyd co-owns Borgata with MGM Resorts, which is currently in the process of divesting its 50% stake.

Top Stocks To Invest In Right Now: (XTRN)

Las Vegas Railway Express Inc. focuses to re-establish a conventional passenger train service between the Las Vegas and Los Angeles metropolitan areas. It plans to establish a ?Vegas-style? passenger train service. The company is based in Las Vegas, Nevada.

Best Casino Stocks To Watch For 2014: Wynn Resorts Limited(WYNN)

Wynn Resorts, Limited, together with its subsidiaries, engages in the development, ownership, and operation of destination casino resorts. The company owns and operates Wynn Las Vegas casino resort in Las Vegas, which includes approximately 22 food and beverage outlets comprising 5 dining restaurants; 2 nightclubs; 1 spa and salon; 1 Ferrari and Maserati automobile dealership; wedding chapels; an 18-hole golf course; meeting space; and foot retail promenade featuring boutiques. Wynn Las Vegas casino resort also features approximately 147 table games, 1 baccarat salon, private VIP gaming rooms, 1 poker room, 1,842 slot machines, and 1 race and sports book. It also owns and operates an Encore at Wynn Las Vegas resort, a destination casino resort located adjacent to Wynn Las Vegas that features a 2,034 all-suite hotel, as well as a casino with 95 table games, 1 sky casino, 1 baccarat salon, private VIP gaming rooms, and 778 slot machines. In addition, the company operates Wyn n Macau casino resort located in the Macau Special Administrative Region of the People?s Republic of China. Wynn Macau casino resort features approximately 595 hotel rooms and suites, 410 table games, 935 slot machines, 1 poker room, 1 sky casino, 6 restaurants, 1 spa and salon, lounges, meeting facilities, and retail space featuring boutiques. Further, it operates Encore at Wynn Macau resort located adjacent to Wynn Macau. Encore at Wynn Macau resort features approximately 410 luxury suites and 4 villas, as well as casino gaming space, including a sky casino consisting of 60 table games and 80 slot machines, 2 restaurants, 1 luxury spa, and retail space. The company was founded in 2002 and is based in Las Vegas, Nevada.

Advisors' Opinion:
  • [By Carlson]

    Wynn Resorts(WYNN) saw its second-quarter profit more than double, but most of that strength came from casino wins, and investors were unimpressed.

    During the quarter, the casino operator earned $52. 4 million, or 52 cents a share, on revenue of $1.03 billion, higher than forecasts of 42 cents on revenue of $992.3 million. This compares with a profit of $25.5 million, or 21 cents, on revenue of $723.3 million, in the year-ago period.

    Wynn had already pre-announced disappointing results for its Las Vegas properties, citing higher costs, including employee health care and benefits, and marketing expenses. Its operating loss for its Wynn Las Vegas and Encore widened to $17.2 million from $8.3 million last year. Revenue rose 1.7% to $318 million.

    Occupancy at the Wynn Las Vegas jumped to 92.6% from 86.6% a year earlier, but revenue per available room fell 3.2%.

    Still, management indicated that there is a slight improvement on the Strip, with an increase in forward group bookings and some bright spots for the ability to yield rates. But management tempered enthusiasm by saying there are some struggles and uncertainty in the marketplace.

    "We hope for continued improvement in Las Vegas or -- let me put it different, we hope that we'll get smarter in Las Vegas in dealing with the peculiarities of this market --and this very, very mercurial, national economic market we're living with," said Steve Wynn, chief executive, in a conference call. "The national economy and the political environment in the country as we head up to the elections [is] very, very touchy. And it is impacting all businesses."

    The biggest boost, of course, came from Macau, where revenue surged 74% to $714.4 million from $410.4 million last year.

    The company opened its Encore Macau in the spring, boosting its market share to about 16% from about 13%, Sterne Agee analyst David Bain wrote in a note.

    Wynn is in the process of working on a new development on the Cotai st! rip, which should spike investors' interest as more details are revealed in the coming quarters.

    Still, investors are concerned that as comparisons get harder in Macau, and second-quarter results are adjusted for hold (how much the casino won), Wynn may not be able to outperform. But Bain reassures, "this has been discussed as nauseam by investors, sell-side analysts, the press -- and even dinner-table relatives -- for some time. We believe the Street is underestimating the summer months in Macua, which may help to produce a new leg up for Macau stories, with Wynn being the most profitable on a per position basis."

  • [By Jeanine Poggi]

    Wynn Resorts'(WYNN) run up of more than 55% this year has caused Wall Street to question its valuation.

    Currently, eight analysts have a buy rating on Wynn, 16 say hold, two rate it underperform rating and one says to sell the stock.

    "With little on the growth horizon in the intermediate term, new competition from Cotai coming in 2011 and 2012 ... and the unclear timing of a true recovery in Las Vegas, we see few catalysts not yet priced-in to pull valuation higher than current levels," Bain wrote in a note following its third-quarter earnings report.

    During the quarter, Wynn lost $33.5 million, or 27 cents a share, compared with a profit of $34.2 million, or 28 cents, in the year-ago period. The loss was attributed to charges related to servicing its debt. On an adjusted basis, Wynn actually earned 39 cents, matching Wall Street's outlook.

    Total Revenue grew to $1 billion from $773.1 million, better than the $990.8 million analysts predicted.

    In Macau, Wynn reported a 50% surge in revenue to $671.4 million, while EBITDA was $198 million, up 54.5% from $128.2 million in the third quarter of 2009. Earlier in the year the company opened its $600 million Wynn Encore Macau, which added 414 rooms to the market.

    Looking ahead, Wynn expects to break ground on its Cotai development in early 2011. The $2 billion to $3 billion project is slated to open in 2015, and management said it would provide additional details following its fourth-quarter earnings report.

    In Las Vegas, CEO Steve Wynn says the Strip is on the road to recovery. "I believe we have seen the bottom in Las Vegas," he said during the company's third-quarter conference call. "I don't know how fast it is going to get better but it isn't going to get any worse."

    Las Vegas revenue inched up 3.1% to $334.5 million during the three-month period, and EBITDA grew 9.3% to $76.5 million.

    Wynn also issued a cash dividend of $8 a share payable on Dec. 7 to sharehold! ers of record on Nov. 23.