Undervalued Stocks To Buy For 2018: 2013

Monday, December 30, 2013

Investing in Foreign Stocks: ADRs and GDRs

Investing in foreign stocks should be part of any investor's portfolio. Not only does it diversify your holdings, it offers plenty of opportunities to profit from trends and developments outside your home country.

The U.S. currently accounts for nearly half of the world's total stock market value, but that's likely to decline in the years ahead as more investors look to emerging markets such as China and India.

Below is an overview of the easiest ways to invest in foreign stocks, whether you live in the U.S. or any other country.

DRs (Depositary Receipts)

A depositary receipt is a negotiable financial instrument issued by a bank to represent a foreign company's publicly traded securities. The depositary receipt trades on a local stock exchange, such as the New York Stock Exchange (NYSE) in the U.S., but represents an interest in a company that is headquartered outside of the United States. A depositary receipt traded in Germany would represent a non-German company.

A DR can be sponsored or unsponsored. The sponsored variety is issued with the knowledge and cooperation of the underlying foreign company. With this cooperation, a sponsored DR usually lets the owners have the same rights normally given to the stockholders in the home country, such as voting rights. An unsponsored DR may not have the same voting rights.

ADRs (American Depositary Receipt)

An American Depositary Receipt (ADR) is a negotiable certificate issued by a U.S. bank representing a specified number of shares in a foreign (i.e. non-U.S.) stock that is traded on a U.S. exchange. ADRs are denominated in U.S. dollars, with the underlying security held by a U.S. financial institution overseas. ADRs help to reduce administration and duty costs that would otherwise be levied on each transaction.

It's important to note that an ADR must be sponsored by the underlying corporation. If not, the security is likely to be traded over the counter, which is considered more risky because ther! e are fewer regulatory requirements.

In most cases, a foreign firm trading OTC will have a five letter ticker. For instance, European Aeronautic Defence and Space Company N.V. trades under the U.S. ticker "EADSF." In contrast, an ADR may trade with the common three ticker symbol on the NYSE. Swiss-based ABB Ltd. trades with the symbol "ABB" on the NYSE.

Overall, there are four levels of ADRs. The chart below explains the difference between sponsored and unsponsored ADRs, as well as different levels of sponsored ADRs and U.S. Securities and Exchange Commission (SEC) reporting requirements.

You can see that the unsponsored variety trades over the counter, which leaves more work to the investor to determine if the voting rights are the same. These shares may also have much less liquidity. To determine which level a company trades at, an investor should check the SEC site (sec.gov) to see which forms have been filed. Checking on the website of a depository bank or ADR.com can also provide insight into a company's filing status.

Type of Program	Description	SEC Filing required	Capital Raising
Unsponsored	ADRs traded on the US OTC market, using existing shares. No contractual relationship with company.	Form F-6 (filed by depositary bank), 12g3-2(b) exemption	No
Sponsored Level I	ADRs traded on the US OTC market, using existing shares. Company forms contractual relationship with single depositary bank.	Form F-6 (filed by depositary bank and company), 12g3-2(b) exemption	No
Sponsored Level II	ADRs listed on a recognized US exchange (NYSE or NASDAQ), using existing shares	Form F-6, Form 20-F	No
Sponsored Level III	ADRs initially placed with US investors and listed on a recognized US exchange (NYSE or NASDAQ)	Form F-6, Form 20-F, Form F-1	Yes

Source: Deutsche Bank Depositary Receipt Services

ADRs, like domestic U.S. stocks, have to meet certain SEC filing requirements. An ADRs' annual report is known as a 20-F filing, which is similar to the 10-K filing that U.S.-based companies file annually.

A 20-F provides detailed and useful information on a firm, including how its financial statements in its home country might differ using U.S. GAAP accounting. It helps an investor make a more apples-to-apples comparison, instead of apples-to-oranges. A foreign firm that trades OTC status will likely not have to file with the SEC, but will have financials from its home country for analysis. The chart above helps clarify what the reporting requirements are.

A depository generally refers to a company, bank or an institution that holds and facilitates the exchange of securities. When it comes to ADRs, large depositories include JP Morgan Chase (NYSE:JPM) and BNY Mellon (NYSE:BK). JPMorgan owns and operates the website ADR.com, that contains a wealth of information on ADRs, both from an educational perspective and to learn which ADRs trade in the U.S.

As a final aside, the term American Depository Share (ADS) is often used in tandem with the term ADR. The ADS is issued by depository banks in the U.S. under agreement with the issuing foreign company. The entire issuance is called an American Depositary Receipt (ADR) and the individual share is referred to as an ADS.

GDRs (Global Depositary Receipt)

Beyond the ADR, there is a second category of DR. A Global Depositary Receipt (GDR) represents a bank certificate issued in more than one country for shares in a foreign company. The shares are held by a foreign branch of an international bank. The shares trade as domestic shares, but are offered for sale globally through the various bank branches. The term GDR is used throughout the globe and designates any foreign firm that trades on an exchange outside its home country.

Other Types of DRs

There are other types of GDRs that represent more specific names in a spe! cific country. A Chinese Depositary Receipt (CDR), which trades on Chinese stock exchanges, is one example. More generally, an International Depository Receipt (IDR) is issued by a depository bank representing ownership of stock of a foreign company held by the bank in trust. An IDR is called an ADR in the United States.

How to Invest in DRs

A DR is meant to make it as easy for a foreign investor to invest in another country. For an ADR, the sponsored variety gives the investor the best chance of having the same economic and voting interests as a domestic investor would.

Here are some ways to buy DRs.

Powershares: These exchange-traded funds offer multiple baskets of listed depositary receipts (BLDRS). One example is BLDR Asia 50 ADR Index Fund (Nasdaq:ADRA), a capitalization-weighted ETF designed to track the performance of 50 Asian market- based DRs. It provides broad diversification to a part of the world that is expected to grow robustly and increase its weight of global market capitalization.

Similar to ADRA are BLDRS Developed Markets ADR Index Fund (Nasdaq:ADRD) and the BLDRS Emerging Markets 50 ADR Index Fund (Nasdaq:ADRE).

You can also invest directly in foreign companies that trade on U.S. exchanges like Sony Corporation (NYSE:SNE) and Toyota Motor Corporation (NYSE:TM). While over-the-counter (OTC) stocks like Samsung (SSNLF) offer an opportunity to invest across the borders, they are not as forthcoming with their earnings reports as ADRs are.

The Bottom Line

The U.S. represents the most liquid and robust depositary receipt market in the world. But other countries continue to grow their DR markets and offer more liquidity for their local citizens. With DRs, the market is poised for increased growth and robustness, with lower costs, faster execution, and equal shareholder rights for investors, regardless of their home country.

Sunday, December 29, 2013

China's Web: Top Internet Trio

The Internet growth story is far from over, especially in China, suggests Yiannis Mostrous; in Capitalist Times, the global expert looks at three favorite ways to play this trend.

Shares of Internet-related Chinese stocks have run up significantly of late—fueled by a raft of bullish research reports.

Investors seeking exposure to this long-term growth story should have a stomach for volatility and the discipline to avoid overpaying for growth. Here are our top three plays for this powerful growth trend.

Ctrip.com International (CTRP)

With a 48% market share, Ctrip.com holds the crown as China's leading online travel agency, offering a one-stop shop for booking hotels, flights, and packaged tours.

In addition to Chinese consumers' growing comfort level with online shopping, Ctrip.com also stands to benefit from the boom in domestic and international travel that has accompanied rising household incomes.

The China Tourism Academy estimates about 80 million from the Mainland traveled abroad in 2012, compared to a mere ten million in 2000.

In 2012, China's online travel market surpassed US$1.5 billion in revenue and should hit the US$2 billion mark by the end of 2013.

With US$1 billion in cash and cash equivalents on its balance sheet, and the best mobile travel application among its competitors, Ctrip.com International should retain its top spot among online travel agencies catering to consumers in Mainland China. Buy Ctrip.com International up to US$65.

Baidu (BIDU)

Already China's undisputed leader in Internet search, Baidu has translated this dominance to the mobile Web and stands to benefit over the long-term by monetizing this traffic.

Like US-based search providers, Baidu isn't a one-trick pony. One of the company's most promising—and lucrative—business lines involves operating a channel through which users can purchase and download games to their mobile phones.

The company has moved aggressively to bulk up its mobile offerings. In July 2013, the firm announced an agreement to acquire 91 Wireless; this blockbuster deal gives Baidu the capacity to distribute 69 million mobile applications per day—19 million more than its closest competitor.

Although investors have bid up the stock by 71% since the start of July, we see additional upside. Baidu rates a buy up to US$170 per share.

Changyou.com (CYOU)

A subsidiary of Internet portal Sohu.com, video game developer Changyou.com specializes in massively multiplayer online role-playing games (MMORPG).

Changyou.com's share price will fluctuate with the success or failure of the company's newest releases.

Until recently, the stock had underperformed its peers in China's Internet and online gaming industry because investors question whether forthcoming expansions to the company's most popular games will be a hit.

These fears are overblown. The stock trades at less than seven times earnings, compared to an average of 17 times earnings for its peer group.

Although Changyou.com is expected to release 10 to 20 videogames for smartphones over the next two years, the stock's current valuation assumes almost no growth going forward. Changyou.com rates a buy up to US$45.00 per share for adventurous investors who can stomach volatility.

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Friday, December 27, 2013

Going Short Australia

Top 10 Gold Companies To Buy Right Now

As a result of the ongoing slowdown in the decade long commodities boom and very rich equity valuations, I see significant headwinds for most Australian assets in general and for the country's currency in particular. Although mining Capex growth is still in positive territory (its growing at a 2% year-over-year pace), its tough to disagree with the Reserve Bank of Australia. Mining Capex is set to fall and this poses a significant challenge to the Australian economy since up to 40% of the country's GDP growth has been accounted for by mining Capex alone. Besides, domestic demand excluding mining Capex has been weak and its tough to see the private sector filling up the GDP growth gap since its already highly leveraged. How could you benefit from Australia's slowdown?

(A) Go short the Australian dollar.

The easiest way to go short Australia's currency and long the US dollar is through selling Australian dollar's ETF, the Currency Shares Australian Dollar Trust (FXA), which is still held by John Keeley. Even when the ETF is down by 15% since 2013 started, I believe there is still significant downside potential for the currency.

Australia's monetary authority should keep on lowering rates (the country is running a significant current account deficit) and this will trigger carry traders to reverse their long positions on the currency. Moreover, the Australian dollar has outperformed the global mining sector significantly and, on the basis of the OECD's estimate of PPP, Australia's currency remains 40% overvalued against the US dollar. I would short FXA with a $75 target, which represents a 17% depreciation of the Australian currency against its US counterpart.

(B) Shorting Australian equities.

On both P/E and P/B relatives, Australian equities trade at a 20% premium to their US counterparts. Hence, ! it looks like a good idea to sell those companies that (1) Trade at the highest premium to US peers and (2) Generate most of their revenues within the country – in the relatively expensive Australian currency.

Most Australian banks seem to comply with (1) and (2). On the other hand, Australian banks have a loan to deposit ratio of 120% and around 9% of their funding is short term foreign funding. This means that their results shall be severely damaged by a steep depreciation of the local currency. A good example of a bank that is easy to short from the US (since it trades in the New York Stock Exchange) is the Westpac Banking Corporation (WBK). Westpac generates 90% of its revenues domestically and sells for 2014 13.1 times earnings and 2.1 times its 2014 expected book value. That said, there is one problem that you will find when you short Westpac's shares: The bank pays a +5% cash dividend yield.

Bottom line.

Given that both Westpac's shares and the Australian dollar should under-perform the US market in 2014, I would short only FXA. The reason? Westpac's huge and sustainable dividend yield. FXA also pays a 2.4% cash yield but this yield should decline as the Australian monetary authorities keep on lowering interest rates. The biggest risk to shorting FXA is related to a strong rebound in commodity prices but this seems unlikely, at least in 2014.

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Thursday, December 26, 2013

Dramatic 48-Hour Shift in Apple Sentiment

Top 10 Medical Companies To Invest In 2014

NEW YORK (TheStreet) -- Six months ago, as we forecast a second-half 2013 Apple (AAPL) run, it was mentioned that leg two of the rally would depend on the headlines. If headlines in the aftermath of the Sept. 10 event suggest Apple innovation is back, then the stock would be in position to run from $500 to $600. I must say that since the stock dipped below $450 on Tuesday, this 48-hour shift in sentiment has been shock and awe.

Based on the extremely favorable iPhone 5S reviews from a variety of outlets from Wall Street Journal and USA Today, to CNET, TechCrunch and, of course, Jim Dalrymple and John Gruber, to name a few, it is now expected that there will be lines and shortages for the 5S over the coming weeks and months.

The M7 coprocessor is a hit. The fingerprint Touch ID is so solid and proprietary that not even Samsung is likely to get away with a copycat version.

The first leg of Apple's run from $400 to $500 was a run defined by big-money intelligence in the midst of a doubting consensus. This second leg will be different. The masses will be on board. As of Wednesday, they already are. Look no further than the cover of BusinessWeek to see what I mean. Tim Cook is being hailed as the backbone of Cupertino. As the smartest guy in the room, he has withstood the absurd and unprecedented barrage from analysts and critics to turn Apple into a clone of its lesser competitors. You don't hear analysts clamoring for Porsche to make a mass-market vehicle or for Tiffany to sell cubic zirconia. Apple generates more profit per quarter than Amazon (AMZN) has made in its entire existence and yet Jeff Bezos is the anointed one? Bezos is nothing more than a Wall Street magician who understands how to play forward-looking investors like puppets. The management team of CEO Cook, Senior VP, Design Jonathan Ive and Senior VP, Software Engineering Craig Federighi is the real deal. The substance of Apple as measured in pricing power and profit remains unmatched. Cook's decision to release a high-margin iPhone 5C that is easier to manufacture than the 5S means that Apple now has a backup product to help fill a global supply chain that will be begging for iPhones between now and the end of the Chinese New Year.

5C will do nothing but add to the profit machine. The year-over-year advantage in earnings should be significant.

The most admirable thing about Tim Cook is that he chooses to do the right thing rather than react to short-term market expectations. Washington D.C. provides us with a strong example of what happens when decision makers react to short-term market obsessions.

During the financial crisis, markets begged for bailouts; this caused politicians to hastily pass stimulus that ended up placating investors for an hour at most. The Sept. 8, 2008, stimulus package that the market wanted so badly actually caused the Dow to drop from 11,500 to 9,200 in one month's time.

A similar effect would likely have happened to Apple if Tim Cook had listened to the voices of Wall Street and offered up a low-margin iPhone 5C designed to capture market share in China and India. Such a move would have meant that Apple ceased to be Apple, thereby eliminating profits moving forward. You can only imagine the AAPL carnage that would have ensued. Clearly Apple is in good hands. Steve made a great choice to hand over the reins to Tim. At the time of publication, the author was long AAPL. Follow Jason Schwartz @economictiming This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.

This commentary comes from an independent investor or market observer as part of TheStreet guest contributor program. The views expressed are those of the author and do not necessarily represent the views of TheStreet or its management. Jason Schwarz is an option strategist for Lone Peak Asset Management in Westlake Village, Calif. He is also the founder of the popular investment newsletter available at www.economictiming.com. Over the past few years, Schwarz has gained acclaim for his market calls on the price of oil, Bank of America, Apple, E*Trade, and his precision investing in S&P 500 option LEAPS. His book, The Alpha Hunter, is set to be released by McGraw Hill in December 2009.

Wednesday, December 25, 2013

Advisors as Servant and Leader, Preventing Wire Fraud and More: August Investment Advisorâ€”Slideshow

Charles Ellis, the best-selling author, consultant and Ivy League professor who founded Greenwich Associates, has some simple advice for advisors who want to grow strong firms that should be obvious but frequently isn’t: Be a good leader and serve your mission well.

Might sound easier said than done, but Ellis explains how to put that into action in this month’s cover story.

Mark Tibergien uncovers a serious issue that could knock the wind out of a firm that isn’t paying attention: wire fraud. It’s a big problem and one advisors need to take seriously. Tibergien, with comments from resident compliance expert Tom Giachetti, explains how advisors can protect themselves.

For our Overlooked Managers feature, we talked to Pioneer Investment’s Charles Melchreit about growth in the ultra-short fund space. Investors have shied away from it since 2008, but now the space is turning around.

We also present the final installment of the 2012 Growth by Design series from FA Insight. What do firms need to grow at each stage of their life cycle? Eliza De Pardo and Dan Inveen explain.

Mission to Serve: How Great Leaders Take a Firm to the Next Level

A word of advice if you ever plan on speaking professionally with Charles Ellis: Be prepared.

The best-selling author, consultant and Ivy League professor swatted away a number of our carefully crafted questions, and it was only after his explanation of why that we understood our mistaken premise. Ellis (who goes by Charley) had something to say and, alternating between genial and intense, he was going to say it. It was a refreshing change from so many interview subjects who fear to contradict in the belief it will make them “look good” in the eyes of the interviewer, and by extension, the reader.

Ellis spoke with Editor-in-Chief John Sullivan to explain what it takes for advisory firms to be great.

Read the Full Article.

Risky Business: How to Protect Your Firm From Wire Fraud

Advisors often mistakenly believe that their broker-dealer or custodian is responsible for preventing fraud. While such firms play a role, providing surveillance and tripwires that stymie illegal transactions, the ultimate responsibility lies with advisors, particularly those serving in a fiduciary capacity.

Hot Insurance Stocks For 2014

Mark Tibergien explains why it's so important for advisors to take responsibility for preventing fraud and shares some examples of ways fraudsters might try to compromise advisors’ practices.

Read the Full Article.

An Ultra-Strong Case for Ultra-Short Funds

It’s been a tough road in the ultra-short mutual fund space. The category blew up in 2008 along with everything else, and yields proved little better than money market funds in the recovery that followed. However, modest inflows since the beginning of the recovery are bringing life back to the space. Editor-in-Chief John Sullivan spoke with Pioneer Investments’ Charles Melchreit to learn why investors have no need to fear the ultra-short space.

Read the Full Article.

Growing Strong: The 2012 Growth by Design Study

In the final installment of the 2012 Growth by Design series, Eliza De Pardo and Dan Inveen compare a firm’s growth needs to vitamins: “As the years progress, so do our dietary needs—Flintstones vitamins make way for Centrum Silver.”

The authors break down data from the annual FA Insight study to show what vitamins a firm needs at each stage.

Read the full article.

Thursday, December 19, 2013

Third Avenue Management Comments on Apache

In August, Apache (APA) announced that it agreed to sell a 33% stake in its Egyptian oil and gas business to Sinopec (SHI) for $3.1 billion. This price equated to $34 per barrel of proved reserves, or a significant premium to the valuation of Apache common of about $15 per barrel prior to the announcement of the transaction. Given the recent political turmoil in Egypt, we were pleasantly surprised at the higher

than expected price received. Apache expects to use the proceeds to reduce leverage, buy back shares and fund other capital spending—in effect using the proceeds from one value enhancing resource conversion to fund other types of desirable conversion events. With this sale, the company will have sold around $7 billion of assets this year, well above its previous plans to sell $4 billion of assets, enabling it to diversify more into North America on-shore.From Third Avenue Management's fourth quarter 2013 commentary.

Also check out: Third Avenue Management Undervalued Stocks Third Avenue Management Top Growth Companies Third Avenue Management High Yield stocks, and Stocks that Third Avenue Management keeps buying

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Wednesday, December 18, 2013

Mortgage Loan Rates Continue to March Higher

The Mortgage Bankers Association (MBA) released its weekly report on mortgage applications Wednesday morning, noting a decrease of 5.5% in the group's seasonally adjusted composite index following a rise of 1% for the previous week. Mortgage loan rates increased again last week on three of four loan types.

The seasonally adjusted purchase index decreased by 6% from the prior week’s report to its lowest level in a year. On an unadjusted basis, the composite index decreased by 6% week-over-week. The unadjusted purchase index decreased by 9% for the week, and is 12% lower year-over-year.

Mortgage rates continue to creep up and home sales continue to slip. An MBA executive noted:

Mortgage applications fell further last week, with the market index falling to its lowest level in more than a dozen years. Both purchase and refinance applications fell as interest rates increased going into today’s Federal Open Market Committee meeting.

The MBA’s refinance index decreased by 24%, after dropping by 2% in the previous week. The share of refinancings rose by a point, totaling 66% of all applications. Adjustable rate mortgage loans account for 8% of all applications, unchanged from the prior week.

The average mortgage loan rate for a conforming 30-year fixed-rate mortgage increased from 4.61% to 4.62%. The rate for a jumbo 30-year fixed-rate mortgage rose from 4.59% to 4.61%. The average interest rate for a 15-year fixed-rate mortgage remained unchanged at 3.66%.

The contract interest rate for a 5/1 adjustable rate mortgage loan rose from 3.11% to 3.2%.

Conforming and jumbo fixed-rate mortgages are back at levels last seen in September. The sharp rise in adjustable rate mortgages likely is due to demand for the much lower interest rate. Adjustable rate mortgages have begun to make a comeback as other mortgage rates rise. This is a good thing now, but could become a problem later.

Tuesday, December 17, 2013

10 Best Cheap Stocks To Watch For 2014

Outerwall (NASDAQ: OUTR ) began trading on Tuesday, but it wasn't an IPO. This is the newly rechristened kiosk operator that investors have known as Coinstar for years.

Coinstar's namesake machines exchange coins for merchant gift cards, and its larger Redbox business rents out DVDs, Blu-rays, and video games at cheap nightly rates. The transformation to Outerwall isn't just a matter of slapping on a new corporate moniker. Outerwall also announced on Tuesday that it's acquiring ecoATM.

Outerwall already had a 23% stake in the automated kiosks that pay cash for smartphones, tablets, and iPods. The machines can assess the condition of the device being submitted and fires back its best offer. This should be a great way for the company to offset the slowdown in its once-growing Redbox business. It's also one that can't be pushed toward obsolescence as media distribution goes digital. Consumers still need to hardware to make it happen, and along comes ecoATM to give consumers an easy way to unload their older gadgetry.

10 Best Cheap Stocks To Watch For 2014: Emerson Electric Company(EMR)

Emerson Electric Co. operates as a diversified manufacturing and technology company. The company engages in appliance solutions, climate technologies, industrial automation, motor technology, network power, process management, professional tools, and storage solutions businesses. Its appliance solutions business provides appliance controls, appliance motors, heating products, and white-rodgers; climate technology business provides heating, ventilation, air conditioning, and refrigeration (HVACR) solutions for residential, industrial, and commercial applications; and industrial automation business offers bearings and power transmission products, electrical power generation products, electric motors, variable speed drives and servos, electrical products, material joining solutions, fluid automation products, and wind turbine systems. The company?s motor technology business provides appliance motors, HVACR motors, DC motors, fractional horsepower motors, integral horsepower a nd larger motors, and drives; network power business provides power, precision cooling, connectivity, and embedded solutions; and process management business provides various wireless related products from self-organizing field networks to wireless asset and people tracking. Its professional tools business offers pipe working and threading equipment, pressing technology, utility locating and visual diagnostics systems, drain maintenance tools, power tools, air tools, general purpose hand tools, wet/dry vacs, job site storage equipment, truck tool boxes and equipment, and van storage equipment; and storage solutions business provides shelving and storage products for residential, commercial, and foodservice needs, as well as offers specialized carts, mobile computer workstations, and cabinet fixtures. The company was founded in 1890 and is headquartered in St. Louis, Missouri.

Advisors' Opinion:

[By Ben Levisohn]
Barclays’ Scott Davis and team believe it might be, and for evidence they look at�3M (MMM), Emerson Electric (EMR), Rockwell Automation (ROK), and MSC Industrial Direct (MSM). They write:
[By Alex Planes]
Eaton's been moving higher all year, but this is just the continuation of a longer bullish trend that's followed the company's efforts to both deepen and broaden its reach. A $12 billion acquisition last year put Eaton in direct competition with Emerson Electric (NYSE: EMR ) and ABB (NYSE: ABB ) in energy infrastructure. That acquisition provided a double benefit for Eaton's bottom line, as the acquired Cooper Industries provided a low-tax domicile in Ireland that's projected to save Eaton many millions each year. Every advantage counts, as Eaton has to contend with super-conglomerate General Electric (NYSE: GE ) in several of its most important segments. Eaton and ABB are also both at risk of disruptive innovation from electrical integration systems that could replace several green-car charging components in one fell swoop.

10 Best Cheap Stocks To Watch For 2014: Uranium Resources Inc.(URRE)

Uranium Resources, Inc. engages in the acquisition, exploration, development, and mining of uranium properties, using the in situ recovery or solution mining process. It owns developed and undeveloped uranium properties in South Texas; and undeveloped uranium properties in New Mexico. The company?s primary customers include utilities who utilize nuclear power to generate electricity. Uranium Resources, Inc. was founded in 1977 and is based in Lewisville, Texas.

Advisors' Opinion:

[By John Udovich]
Since the start of the week, small cap nuclear fuel stock USEC Inc (NYSE: USU) more than doubled for investors, something that has not happened for investors in uranium stocks like Uranium Resources, Inc (NASDAQ: URRE), Denison Mines Corp (NYSEMKT: DNN), Ur-Energy Inc. (NYSEMKT: URG) and Uranerz Energy Corp (NYSEMKT: URZ). To recap: USEC Inc closed at the $6 level on Friday, but then it surged to the $15 level on Monday only to open at the $10 level on Tuesday when it ultimately closed at $12.46. So what in the world is going on with USEC Inc and is it time to revisit nuclear fuel and uranium stocks?
[By James E. Brumley]
You know, were it just Uranium Resources, Inc. (NASDAQ:URRE) or just Ur-Energy Inc. (NYSEMKT:URG) or just Uranerz Energy Corp. (NYSEMKT:URZ) making a decided bullish move, I might be able to dismiss it. Similarly, if URZ had only been moving higher for one or two days (or only URG or only URRE), it might be easy to not be impressed. Neither of those situations has been the actual case, however. All three stocks have been moving upward for several days now, quite a bit, on noticeably higher volume. There's something "going on", as it were, and if prior group-wide movements are any clue, it's the kind of move worth tapping into.

Hot Cheap Companies To Invest In 2014: Local.com Corporation(LOCM)

Local.com Corporation operates as an Internet search advertising company that enables businesses and consumers to find each other and connect locally. Its Owned and Operated business unit manages its flagship online property Local.com and a proprietary network of approximately 20,000 local Websites that reach approximately 15 million monthly unique visitors. The company places various display, performance, and subscription advertisement products on its Local.com and proprietary network. Its Network business unit operates a private label local syndication network of approximately 1,000 U.S. regional media Websites; 80,000 third-party local Websites; and its own organic feed of local businesses plus third-party advertising feeds that focus primarily on local consumers to a distribution network of hundreds of Websites. The company?s Sales and Ad Services business unit provides approximately 45,000 direct monthly subscribers with Web hosting or Web listing products. The compan y was formerly known as Interchange Corporation and changed its name to Local.com Corporation in November 2006. Local.com Corporation was founded in 1999 and is headquarters in Irvine, California.

10 Best Cheap Stocks To Watch For 2014: Hewlett-Packard Company(HPQ)

Hewlett-Packard Company and its subsidiaries provide products, technologies, software, solutions, and services to individual consumers and small- and medium-sized businesses (SMBs), as well as to the government, health, and education sectors worldwide. Its Personal Systems Group segment offers commercial personal computers (PCs), consumer PCs, workstations, calculators and other related accessories, and software and services for the commercial and consumer markets. The company?s Services segment provides consulting, outsourcing, and technology services to infrastructure, applications, and business process domains. Its Imaging and Printing Group segment provides consumer and commercial printer hardware, supplies, media, and scanning devices, such as inkjet and Web solutions, laser jet and enterprise solutions, managed enterprise solutions, graphics solutions, and printer supplies. The company?s Enterprise Servers, Storage, and Networking segment offers industry standard s ervers, business critical systems, storage platforms, and networking products, including switches, routers, wireless LAN, and TippingPoint network security products. Its HP Software segment provides enterprise IT management software, information management solutions, and security intelligence/risk management solutions. The company?s HP Financial Services segment offers leasing, financing, utility programs, and asset recovery services; and financial asset management services for enterprise customers, as well as specialized financial services to SMBs, and educational and governmental entities. Hewlett-Packard Company also provides business intelligence solutions that enable businesses to standardize on consistent data management schemes, connect and share data across the enterprise, and apply analytics, as well as licenses its specific technology to third parties. The company was founded in 1939 and is headquartered in Palo Alto, California.

Advisors' Opinion:

[By John Divine]
Hewlett-Packard (NYSE: HPQ ) , which was up nearly 2% earlier in the day, ended only slightly in the negative, posting losses less than 0.1%. Sadly, that made HP the Dow's top performer of the day. The resilience to broader declines comes as CEO Meg Whitman shakes up company executives in an effort to continue a turnaround that has sent shares up nearly 80% year to date. Shareholders are starting to trust her intuitions.�
[By WALLSTCHEATSHEET.COM]
Hewlett-Packard is a software an technology bellwether that provides essential products and services to consumers and companies worldwide. The company�announced its intentions to restructure, projecting savings between $3.0 to $3.5 billion by the end of the 2014 fiscal year. The stock has been moving higher in recent months and is now trading near highs. Over the last four quarters, earnings and revenues have been declining. However, investors are pleased with recent earnings announcements. Relative to its peers and sector, Hewlett-Packard has been a year-to-date performance leader. Look for Hewlett-Packard to OUTPERFORM.
[By Rick Aristotle Munarriz]
Bloomberg via Getty Images Companies can make brilliant moves, but there are also times when things don't work out quite as planned. From an online educator getting schooled to a PC dinosaur showing signs of coming back to life, here's a rundown of the week's best and worst in the business world. Hewlett-Packard (HPQ) -- Winner PC sales continue to slide, but market leader HP is turning things around. Industry tracker IDC may have served up some grim metrics for the state of desktops and laptops -- global PC shipments were down by nearly 8 percent, making this the sixth consecutive quarter of slipping sales -- but IDC estimates that HP bucked the trend by shipping more computers than it did a year earlier. The trend is even better domestically. HP was already having a good week when CEO Meg Whitman explained why she felt her company was well-positioned to thrive in the future. The IDC report suggests that HP's rosy future is now. K12 (LRN) -- Loser Online learning has come under fire in recent years. Are the students engaged enough? Is the education effective? Are the cost savings worth the shortcomings of the virtual classroom? We still don't have all of the answers, but we may be seeing enrollments peaking. Shares of K12 were slammed this week after the provider of Web-based curriculums for grade school students posted a disappointing outlook. K12 saws enrollments increased by a softer than expected 6 percent in its latest quarter. K12 also now sees revenue for the entire fiscal year that ends in June clocking in between $905 million and $925 million. Analysts were perched at $988 million. Ouch. That's not a passing grade. Microsoft (MSFT) -- Winner HP wasn't the only winner in IDC's review of the PC industry during the third quarter. Four of the five largest PC makers in this country saw their shipments increase. The lone holdout was Apple (AAPL) experiencing an 11 percent slide in Mac and MacBook sales during the period. That's sweet news for Mic

10 Best Cheap Stocks To Watch For 2014: SMTC Corporation(SMTX)

SMTC Corporation provides advanced electronics manufacturing services to original equipment manufacturers (OEMs) worldwide. The company?s services include product design and engineering services, printed circuit board assembly production, enclosure fabrication, systems integration, testing, and configuration services. It also provides enclosure and precision metal fabrication, cable assembly, interconnect, and engineering design services. The company offers its integrated contract manufacturing services to OEMs and technology companies primarily in the industrial, computing and networking, communications, consumer, and medical market segments. SMTC Corporation was founded in 1985 and is based in Markham, Canada.

10 Best Cheap Stocks To Watch For 2014: Cardero Resource Corporation(CDY)

Cardero Resource Corp., together with its subsidiaries, engages in the acquisition, exploration, and development of mineral properties in Mexico, Peru, Argentina, the United States, and Canada. The company holds a 75% interest in the Carbon Creek deposit, a metallurgical coal development project located in the Peace River Coal Field of northeast British Columbia, Canada. It also has an option to acquire 100% interest in the Pampa El Toro project, an iron sands deposit, located in southern Peru; option to acquire up to an 85% interest in the Longnose property in St. Louis county, northeastern Minnesota; and 100% leasehold interest in the Titac property, located in St. Louis county, northeastern Minnesota. The company was formerly known as Sun Devil Gold Corp. and changed its name to Cardero Resource Corp. in May 1999. Cardero Resource Corp. was founded in 1985 and is headquartered in Vancouver, Canada.

10 Best Cheap Stocks To Watch For 2014: AeroVironment Inc.(AVAV)

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

Advisors' Opinion:

[By Rich Smith]
AeroVironment (NASDAQ: AVAV )
Shifting over the implications of this news for automotive investments, the key attraction for AeroVironment investors (aside from selling UAVs into an Afghan war that's winding down) has been the company's "PosiCharge" electric-car battery recharging technology. AV says it beats all comers with the ability to recharge a lithium ion battery pack in mere minutes. But if Khare's invention bears fruit, and battery recharge times begin getting measured in seconds, AV's raison d' etre could vanish.

10 Best Cheap Stocks To Watch For 2014: Capstone Turbine Corporation(CPST)

Capstone Turbine Corporation develops, manufactures, markets, and services turbine generator sets and related parts for use in stationary distributed power generation applications. Its stationary distributed power generation applications include cogeneration combined heat and power (CHP), integrated (CHP), resource recovery, and secure power, as well as combined cooling, heat, and power; and its products are used as battery charging generators for hybrid electric vehicle applications. The company primarily offers microturbine units, subassemblies, and components. It also provides various accessories, including rotary gas compressors with digital controls, heat recovery modules for CHP applications, dual mode controllers that allow automatic transition between grid connect and stand-alone modes, batteries with digital controls for stand-alone/dual-mode operations, power servers for multipacked installations, and protocol converters for Internet access, as well as frames, ex haust ducting, and installation hardware. Further, it remanufactures microturbine engines; and provides after-market parts and services, scheduled and unscheduled maintenance, and factory and on-site training services. The company?s microturbines can be fueled by various sources, including natural gas, propane, sour gas, landfill or digester gas, kerosene, diesel, and biodiesel. It primarily sells its products directly to end users, as well as through distributors in North America, Asia, Australia, Europe, the Russian Federation, and South America. Capstone Turbine Corporation was founded in 1988 and is based in Chatsworth, California.

Advisors' Opinion:

[By Tyler Crowe]
What:�Shares of Capstone Turbine (NASDAQ: CPST ) skyrocketed 13.59% as the company announced that it had signed a major supplier deal with private real estate and investment firm Related Companies. Shares of Capstone haven't been this high in over a year.
[By Selena Maranjian]
Fisher reduced its stake in lots of companies, including Capstone Turbine (NASDAQ: CPST ) and Nokia (NYSE: NOK ) . Capstone is a smallish company, making low-emission microturbines used in power generation. Its top line has been growing by double digits over the past few years, and it's poised to profit from huge interest in shale oil, but it remains in the red. Still, it has recently announced a bunch of promising deals and some think the many folks short the stock will end up burned.
[By Tyler Crowe and Aimee Duffy]
Over the past couple weeks Capstone Turbine (NASDAQ: CPST ) shares have launched into orbit on the news that the company had secured several orders for its microturbines. But 40% in a month? On the surface, it seems a bit silly that a company could gain that much on a couple news stories about sales. For a company like Capstone, which has struggled with sales, this kind of news is exactly what shareholders were looking for.

10 Best Cheap Stocks To Watch For 2014: Kohl's Corporation(KSS)

Kohl?s Corporation operates department stores in the United States. The company?s stores offer private and exclusive, as well as national branded apparel, footwear, and accessories for women, men, and children; soft home products, such as sheets and pillows; and housewares primarily to middle-income customers. As of January 29, 2011, it operated 1,089 stores in 49 states. The company also offers on-line shopping on its Web site at Kohls.com. Kohl?s Corporation was founded in 1962 and is headquartered in Menomonee Falls, Wisconsin.

Advisors' Opinion:

[By Sam Mattera]
AFP/Getty Images TVs stand out as one of the premiere, big-ticket items of Black Friday. Even Kohl's (KSS), a store known for its clothing (not electronics), will have a few in stock that day, in an attempt to lure in a few extra bargain hunters. With so many different stores running specials, and all the different models on sale, there are literally dozens of different Black Friday TVs to choose from. While there are plenty of great deals available, a few stand out as being particularly noteworthy. Head to Walmart for the All-Around Cheapest Flat-Screen TV Walmart (WMT) will be selling a 32-inch LED Funai for just $98, making it one of the very cheapest TVs on sale this year. Discriminating buyers, however, should likely stay away -- Funai isn't in the same league as Sony (SNE) or Panasonic (PCRFY) when it comes to picture quality, and this particular set is just 720p (in contrast to full-HD 1080p). If you've never heard of Funai, the company generally sells its TVs under the Sylvania and Magnavox brands, two budget names not exactly known for their quality. Nevertheless, $98 for a 32-inch LED is hard (perhaps impossible) to beat. Shoppers looking for the cheapest flat-screen they can get their hands on should plan to be at Walmart Thanksgiving night. For a Great Deal on a Quality Samsung, Hit h.h. gregg At h.h. gregg (HGG), they'll also be offering a 32-inch LED, but unlike Walmart's Funai deal, this is on a model known for its quality. The set, Samsung's UN32EH5300, was declared one of the best 32-inch LCD TVs you can buy by LCD TV Buying Guide for 2012. It sports full-HD 1080p, and comes equipped with Samsung's smart TV suite -- owners can access digital content from sites like Netflix (NFLX) and Youtube. h.h. gregg will sell the TV for $299.99, what it claims is a 33 percent discount. Right now, Amazon (AMZN) is charging about $330 for the TV as part of its "Countdown to Black Friday" sale, making the h.h. gregg discount closer to 10 percent. (O
[By Ben Levisohn]
JC Penney’s gain is all the more surprising consider what’s happened to other retailers today. Macy’s (M) has dropped 0.8% to $43.83, Kohl’s (KSS) has dipped 0.4% to $50.16 , Dillard’s (DDS) has fallen 2% to $76.19 and Nordstrom (JWN) has declined o.6% to $56.98.
[By Ryan Guenette]
Wal-Mart (NYSE: WMT ) , Macy's (NYSE: M ) , J.C. Penney (NYSE: JCP ) , and Kohl's (NYSE: KSS ) all stressed one underlying aspect when they reported quarterly results recently: lower to middle-income Americans are holding onto the money they have, which will have implications across the retail industry.
[By James Ha]
US solar consumption has jumped by 55 percent since 1995 and appears in a multitude of commercial merchandises ranging from phone chargers to parking meters. In addition, big name companies have started to use solar as an energy source in their stores. According to the Solar Energy Industries Association, Wal-Mart (NYSE: WMT) and Walgreens (NYSE: WAG) lead the way with 144 and 134 stores using the energy source. Other leaders include Kohl's (NYSE: KSS), Costco (NASDAQ: COST) and Macy's (NYSE: M).

10 Best Cheap Stocks To Watch For 2014: TII Network Technologies Inc.(TIII)

Tii Network Technologies, Inc., together with its subsidiaries, designs, manufactures, and sells products for use in the networks to service providers in the communications industry in the United States. It provides network interface devices (NID), including overvoltage surge protectors, digital subscriber line (DSL) service splitters, and customer bridge modules; building entrance terminals; and accessories comprising station protectors, customer wiring modules, electro-magnetic interference filters, and line test modules. The company also offers broadband products, such as DSL electronic products that include xDSL plain old telephone service splitters to isolate voice and data signals; Outrigger, an outdoor intelligent residential gateway; HomePlug technology that enables networking of voice, data, and audio devices through the consumers? AC power lines. In addition, it provides connectivity products consisting of connector block and terminal block products; voice over I nternet protocol products; switchable voice NID products; voice intercom systems for use in multi-dwelling units; and wire terminals and other connectivity products. Further, the company offers fiber optic products which comprise wall mount enclosures, rack mount enclosures, OSP fiber enclosures, cable assemblies, miscellaneous fiber accessories, and optic network terminals installation accessories. Additionally, it offers overvoltage surge protection products, including two and three electrode gas tubes; station overvoltage surge protectors; protector modules; and protector packs and cat 5 cat 6 protection products, as well as other surge protection products comprising a 75 ohm coaxial protector for cable networks; a 50-ohm coaxial protector for wireless service providers? cell sites; a gel-sealed Ethernet data protector; and power line/data line protectors for personal computers and home entertainment systems. The company was founded in 1964 and is headquartered in Edgewoo d, New York.

Sunday, December 15, 2013

Top Canadian Stocks To Own Right Now

Canadian stocks fell, following the biggest rally in 11 months, as raw-materials companies declined amid signs China may tolerate slower growth and a U.S. Federal Reserve official urged slower stimulus.

Pretium Resources Inc. lost 4 percent and Alamos Gold Inc. dropped 3.7 percent as falling metals prices weighed on raw-materials producers. Catamaran Corp. added 0.9 percent, pacing gains among health-care companies. Niko Resources Ltd. surged 3.4 percent after entering an agreement for a $60 million loan.

The Standard & Poor��/TSX Composite Index (SPTSX) fell 31.09 points, or 0.3 percent, to 12,462.17 at 4 p.m. in Toronto, erasing an earlier gain of 0.2 percent. The loss pared the index�� weekly gain to 2.7 percent, its biggest five-day advance since November. Trading was 27 percent below the 30-day average.

��t has been a zigzag worth of news coming out from the Fed,��said Irwin Michael, fund manager with ABC Funds in Toronto. He helps manage about C$800 million ($759 million). ��he market is moving on how people are processing the information coming out.��

Top Canadian Stocks To Own Right Now: Nu Skin Enterprises Inc.(NUS)

Nu Skin Enterprises, Inc. develops and distributes anti-aging personal care products and nutritional supplements worldwide. The company sells its personal care products under the Nu Skin brand; and nutritional supplements under the Pharmanex brand. Its personal care product line includes core systems, targeted treatments, total care, cosmetic, and Epoch, a product formulated with botanical ingredients. The company?s nutritional supplements product line comprises micronutrient supplements, targeted solution supplements, and weight management products. It also sells Vitameal, which are nutritious meal products for starving children or purchased for personal food storage. In addition, the company offers other products and services consisting of digital content storage, water purifiers, and other household products. It sells its products primarily through a network of independent distributors in north Asia, the Americas, Greater China, Europe, and the south Asia/Pacific. The c ompany also operates retail stores to sell its products in China. As of December 31, 2010, Nu Skin Enterprises operated 40 stores throughout China. The company was founded in 1984 and is headquartered in Provo, Utah.

Advisors' Opinion:

[By Jeremy Bowman]
What: Shares of Nu Skin Enterprises (NYSE: NUS ) were looking refreshed today, gaining as much as 14% today after the company lifted its guidance significantly for the current quarter and full year.
[By Luke Jacobi]
Nu Skin Enterprises (NYSE: NUS) shot up 8.39 percent to $111.78 after the company reported upbeat third-quarter earnings and issued a strong Q4 outlook.
[By Rich Duprey]
Personal care products maker�Nu Skin Enterprises� (NYSE: NUS ) �announced today�its second-quarter dividend of $0.30 per share, the same rate it paid last quarter after it raised the payout 50% from $0.20 per share.

Top Canadian Stocks To Own Right Now: Airgas Inc.(ARG)

Airgas, Inc., through its subsidiaries, distributes industrial, medical, and specialty gases, as well as hardgoods in the United States. The company offers various gases, including nitrogen, oxygen, argon, helium, and hydrogen; welding and fuel gases, such as acetylene, propylene, and propane; and carbon dioxide, nitrous oxide, ultra high purity grades, special application blends, and process chemicals. Its hardgoods products comprise welding consumables and equipment, safety products, and construction supplies, as well as maintenance, repair, and operating supplies. The company also engages in the rental of gas cylinders, cryogenic liquid containers, bulk storage tanks, tube trailers, and welding and welding related equipment. In addition, the company manufactures and distributes liquid carbon dioxide, dry ice, nitrous oxide, ammonia, refrigerant gases, and atmospheric merchant gases. It serves repair and maintenance, industrial manufacturing, energy and infrastructure co nstruction, medical, petrochemical, food and beverage, retail and wholesale, analytical, utilities, and transportation industries. The company operates an integrated network of approximately 1100 locations, including branches, retail stores, packaged gas fill plants, specialty gas labs, production facilities, and distribution centers. Additionally, it provides retail solutions to retail customers, such as florists, grocers, restaurants and bars, tire and automotive service centers, and others. The company markets its products through multiple sales channels, including branch-based sales representatives, retail stores, strategic customer account programs, telesales, catalogs, e-business, and independent distributors. Airgas, Inc. was founded in 1982 and is based in Radnor, Pennsylvania.

Advisors' Opinion:

[By Monica Gerson]
Airgas (NYSE: ARG) is expected to report its Q2 earnings at $1.22 per share on revenue of $1.28 billion.

The Boeing Company (NYSE: BA) is estimated to report its Q3 earnings at $1.55 per share on revenue of $21.68 billion.

Top Financial Stocks To Buy For 2014: Imperial Oil Limited(IMO)

Imperial Oil Limited engages in the exploration, production, and sale of crude oil and natural gas in Canada. The company operates through three segments: Upstream, Downstream, and Chemical. The Upstream segment engages in the exploration and production of conventional crude oil, natural gas, synthetic oil, and bitumen primarily in the Western Provinces, the Canada Lands, and the Atlantic Offshore. Its primary conventional oil producing asset includes the Norman Wells oil field in the Northwest Territories. The Downstream segment engages in the transportation and refining of crude oil, as well as blending, distribution, and marketing of refined products. It owns and operates crude oil, and natural gas liquids and products pipelines in Alberta, Manitoba, and Ontario. The Chemical segment engages in the manufacture and marketing of various petrochemicals, including ethylene, benzene, aromatic and aliphatic solvents, plasticizer intermediates, and polyethylene resin. As of De cember 31, 2010, Imperial Oil Limited had 1,204 million oil-equivalent barrels of proved undeveloped reserves; maintained a nation-wide distribution system, including 24 primary terminals, to handle bulk and packaged petroleum products moving from refineries to market by pipeline, tanker, rail, and road transport; and sold petroleum products through 1,850 Esso retail service stations, of which approximately 510 were company owned or leased. The company was founded in 1880 and is headquartered in Calgary, Canada. Imperial Oil Limited operates as a subsidiary of Exxon Mobil Corporation.

Advisors' Opinion:

[By Vanin Aegea]
Two companies that have been around for some time now are Imperial Oil (IMO) and Pembina Pipeline (PBA). Political instability in the Middle East has also given an extra relevance to the reserves found at this region, so let us see what the future holds and what gurus think of them.
[By Aaron Levitt]
For Imperial Oil (IMO), it�� good to have friends in high places. In this case, we��e talking about Exxon�� (XOM) 70% stake in the Canadian integrated oil firm. That relationship has provided plenty of capital and technological know-how to produce plenty of crude oil and natural gas via conventional and unconventional means.

Top Canadian Stocks To Own Right Now: ENI S.p.A. (E)

Eni SpA, an integrated energy company, engages in the exploration, production, transportation, transformation, and marketing of oil and natural gas. The company also involves in the production and sale of electricity; refining and marketing of petroleum products; and production and sale of petrochemical products and hydrocarbons. In addition, it engages in the offshore and onshore hydrocarbon field construction. Further, the company offers offshore and onshore drilling, and offshore design and engineering services for oil and gas companies. It has a strategic partnership with Gazprom for the joint development of projects in the upstream oil and gas markets. Eni SpA operates in Europe, Africa, Asia and Oceania, and the Americas. The company was founded in 1953 and is headquartered in Rome, Italy with an additional office in San Donato Milanese, Italy.

Advisors' Opinion:

[By Sean Williams]
Despite operating around the globe, many of Chevron's assets are well-protected from political unrest or violence. The same can't be said for Italian-based Eni (NYSE: E ) which saw a good chunk of its oil production come under serious pressure in 2011 because of civil unrest and an eventual regime change in Libya. At the time, 14% of Eni's daily production ��nearly 250,000 barrels ��came from Libya and it maintained quite a few other undeveloped assets in the country. Eni's prospects have since improved, but other oil and gas companies deal with the similar potential for unrest on a daily basis.
[By Tyler Crowe and Aimee Duffy]
There is a lot of buzz over recent energy activity in Sub-Saharan Africa. With Anadarko Petroleum (NYSE: APC ) and Eni (NYSE: E ) making large gas finds off the coast of Mozambique, several majors are now looking to get in the game as well. BP plans to spend $540 million over the next five years to develop a part of this gas field that could hold well over 100 trillion cubic feet.�

Top Canadian Stocks To Own Right Now: Cornerstone Progressive Return Fund(CFP)

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

Advisors' Opinion:

[By Dan Caplinger]
But you can see in several places the consequences of the stampede toward high yield. Here are just a few:
Closed-end funds Cornerstone Progressive (NYSEMKT: CFP ) and Pimco High Income (NYSE: PHK ) both make fixed payments back to fund shareholders on a monthly basis, and their distribution yields are truly extraordinary, at about 17% and 12%, respectively. Those dividends have enticed shareholders to pay $1.30 to $1.40 or more for each $1 of assets in the funds. Yet during most months, a substantial portion of those distribution payments has simply been a return of investor capital rather than true income from the funds' investments. A recent study discussed in The Wall Street Journal found that returns on a portfolio with a combined value and dividend-income strategy outperformed a strategy focused more exclusively on maximizing dividends by an average of 1.7 percentage points per year, a huge edge in long-run returns. In the dividend ETF arena, most funds tend to focus on maximizing yield. Although the popular Vanguard Dividend Appreciation (NYSEMKT: VIG ) ETF bucks the trend by screening first for consistent dividend growth and only then looking at yield as a factor, many rival ETFs start with high-yielding stocks as their baseline and only then consider other desirable traits. Others focus solely on high-dividend niches of the market, such as iShares FTSE NAREIT Mortgage-Plus (NYSEMKT: REM ) and its concentration on high-yield mortgage REITs.
When dividend stocks get too popular, their prices get out of line with both their dividend income and the fundamentals of the businesses that underlie those stocks. In simpler terms, when dividend stocks become bad values, it's time to consider looking elsewhere for a margin of safety.

Top Canadian Stocks To Own Right Now: ConocoPhillips(COP)

ConocoPhillips operates as an integrated energy company worldwide. The company?s Exploration and Production (E&P) segment explores for, produces, transports, and markets crude oil, bitumen, natural gas, liquefied natural gas, and natural gas liquids. Its Midstream segment gathers, processes, and markets natural gas; and fractionates and markets natural gas liquids in the United States and Trinidad. The company?s Refining and Marketing (R&M) segment purchases, refines, markets, and transports crude oil and petroleum products, such as gasolines, distillates, and aviation fuels. Its Chemicals segment manufactures and markets petrochemicals and plastics. This segment offers olefins and polyolefins, including ethylene, propylene, and other olefin products; aromatics products, such as benzene, styrene, paraxylene, and cyclohexane, as well as polystyrene and styrene-butadiene copolymers; and various specialty chemical products comprising organosulfur chemicals, solvents, catalyst s, drilling chemicals, mining chemicals, and engineering plastics and compounds. The company?s Emerging Businesses segment develops new technologies and businesses. It focuses on power generation; and technologies related to conventional and nonconventional hydrocarbon recovery, refining, alternative energy, biofuels, and the environment. This segment also offers E-Gas, a gasification technology producing high-value synthetic gas. ConocoPhillips was founded in 1917 and is based in Houston, Texas.

Advisors' Opinion:

[By Matt DiLallo]
ConocoPhillips (NYSE: COP )
Among the large independent exploration and production companies, ConocoPhillips has the characteristics I look for in a long-term investment. The company has a steady growth plan, which will see it boost its production and margins by 3%-5% annually through 2017, with multiple opportunities to keep growing beyond that date. In addition to its exceptional growth opportunities here in the states, Conoco's operations span the globe, including positions in the Canadian oil sands, Australian natural gas exports, and European offshore oil. That diversification has helped keep the company from suffering the fate of many of its landlocked U.S.-based peers.�

Top Canadian Stocks To Own Right Now: NRG Energy Inc.(NRG)

NRG Energy, Inc., together with its subsidiaries, operates as a wholesale power generation company. The company engages in the ownership, development, construction, and operation of power generation facilities. It also involves in the transacting in and trading of fuel and transportation services; the trading of energy, capacity, and related products in the United States and internationally; and the supply of electricity, energy services, and cleaner energy and carbon offset products to retail electricity customers in deregulated markets. The company operates natural gas- fired, coal- fired, oil-fired, nuclear, solar, and wind power plants. As of December 31, 2010, it had power generation portfolio of 193 operating fossil fuel and nuclear generation units with an aggregate generation capacity of approximately 24,570 megawatt (MW), as well as ownership interests in renewable facilities with an aggregate generation capacity of 470 MW. The company portfolio also includes appr oximately 24,035 MW generation capacity in the United States, and 1,005 MW generation capacity in Australia and Germany. In addition, it has a district energy business with steam and chilled water capacity of approximately 1,140 megawatts thermal equivalent. NRG Energy, Inc. was founded in 1989 and is headquartered in Princeton, New Jersey.

Advisors' Opinion:

[By Rich Duprey]
The country's largest independent competitive power generator, NRG Energy (NYSE: NRG ) , announced today it had commenced with the IPO of its wholly owned subsidiary, NRG Yield. The purpose of the offering is to create a unit to acquire cogeneration assets.

Top Canadian Stocks To Own Right Now: Royal Bank Of Canada(RY)

Royal Bank of Canada provides personal and commercial banking, wealth management services, insurance, corporate and investment banking, and transaction processing services under the RBC name worldwide. Its Canadian Banking segment offers personal financial services, business financial services, and cards and payment solutions. The company?s Wealth Management segment provides wealth and asset management, and estate and trust services to affluent and high net worth clients through distributors, as well as directly to institutional and individual clients in Canada, the United States, Europe, Asia, and Latin America. Its Insurance segment provides various life and health insurance, including universal life, accidental death and critical illness protection, disability, long-term care insurance, and group benefits; and property and casualty insurance comprising home, auto, and travel insurance, as well as wealth accumulation solutions; and reinsurance products through retail ins urance branches, call centers, independent insurance advisors and travel agencies, financial institutions, and career sales force. The company?s International Banking segment offers various financial products and services to individuals, business clients, and public institutions in the U.S. and Caribbean. This segment also provides global custody, fund and pension administration, securities lending, shareholder services, analytics, and other related services to institutional investors. Royal Bank of Canada?s Capital Markets segment engages in the trading and distribution of fixed income, foreign exchange, equities, commodities, and derivative products for institutional, public sector, and corporate clients; and involves in investment banking, debt and equity origination, advisory services, corporate lending, private equity, and client securitization businesses. The company was founded in 1864 and is headquartered in Toronto, Canada.

Advisors' Opinion:

[By Rich Duprey]
As mobile commerce continues to grow worldwide, Royal Bank of Canada (NYSE: RY ) this week announced its�customers will be able to securely purchase goods and services with debit or credit using smartphones compatible with Bell Canada's (NYSE: BCE ) wireless network as part of a new�mobile payment system the two are launching.
[By Eric Lam]
Canadian stocks rose for a fourth day, extending a two-year high, as Royal Bank (RY) of Canada soared to a record close and energy producers surged on accelerating economic growth in China.
[By Eric Volkman]
The joint book-running managers of the issue are Raymond James Financial (NYSE: RJF ) unit Raymond James & Associates, Royal Bank of Canada's (NYSE: RY ) RBC Capital Markets, and the Securities divisions of Credit Suisse and Deutsche Bank (NYSE: DB ) . The sale is expected to close on May 28.

Thursday, December 12, 2013

Advisorsâ€™ Biggest Retirement Blind Spot May Be Their Own

First, the bad news. Fifty percent of financial advisors do not have a written business plan, 46% do not have their own retirement plan for themselves (despite 40% saying they plan to retire within the next 14 years), only 25% have a succession plan in place, and only 25% have a formal definition of their ideal client. When asked “What do you plan to do with your business/clients when you retire?” 17% answered “I don’t know.”

Now, the good news. Of those advisors under 40, 61% say they have a written business plan. The larger the firm, the more likely it is to have one. There is also a clear “professionalization” trend within the advisor industry, with more non-advisor managers in place to run the business, and advisors are doing a good job of meeting their clients’ needs.

The news arises from the Financial Planning Association’s inaugural study, “The Future of Practice Management,” sponsored by the FPA’s new Research and Practice Institute, and executed by Advisor Impact, the research firm run by Julie Littlechild, who provided some of the color in the comments above.

Advisor Impact is partnering with the FPA Institute on this study and a series of additional reports throughout 2014.

The Future study was based on an October online survey of 2,376 respondents who spent an average of 27 minutes to complete the survey. Of those respondents, 1,954 were advisors, drawn, Littlechild said, from all advisor channels — RIAs (23% of all respondents), wirehouse brokers (15%), independent and regional broker-dealers (29%), 13% insurance BD reps and 10% dually registered advisors. By design, 422 of the total respondents included junior advisors (those under 40), support staff and non-advisor management. Only about 30% of the respondents were FPA members, but 39% were CFPs.

Valerie Porter, the FPA’s Director of Practitioner Services and herself a CFP with her own practice near Indianapolis, said the inaugural study was meant to “identify some of the key areas where advisors need guidance,” and explained that the quarterly studies that will be issued throughout 2014 “will focus on some of those issues, and then tailor resources at FPA to meet those needs.”

In addition to helping FPA’s members — for example, “if we find that many advisors don’t have a business plan, FPA can make templates available” to members and hold sessions on how to write a business plan — it will also benefit consumers.

One of the major issues identified in the study was advisors’ struggle with time management, which Porter said she understood well. “There are lots of demand on our time,” she said, and the work that advisors do on behalf of clients “can be very taxing” since “money is a very emotional subject.”

In fact, the next topic in the Institute’s series of reports, Porter said, will revolve around productivity: “It’s all about efficiency, about time management, about knowing who your ideal client is and what your goals are.”

The study is designed to give advisors the tools to build and improve their businesses and to develop a robust practice management model. That process starts with setting personal goals, which drive business and succession goals.

“You have to start with your goals,” Littlechild says, but the study showed “that there’s clearly some weakness” among advisors who have failed to write business and succession plans.

Porter voiced surprise at “the number of advisors who don’t have their own retirement plan,” and called the lack of business planning “disappointing.” As for the study’s findings that many advisors haven’t clearly identified their ideal clients, Porter said it was an important topic since figuring out “who you want to work with, and who you can serve well” leads you to become “an expert in working with that kind of client.”

When you do become an expert, she says, those clients “refer you to other people like themselves,” so that “the whole issue of referrals becomes a nonissue.” For the advisor personally, she says that “when you get someone you genuinely like to work with, your satisfaction levels rise, and people want to work with you” as well.

As for the good news on the profession, Littlechild said that based on “other research we’ve done, advisors by and large are doing really good work for clients,” and that there is a “professionalizing of the industry” occurring, marked by “more non-advisor management coming into firms, which will influence training.”

With the inaugural study and the follow-ups, “we’re talking about making the business side better.”

Tuesday, December 10, 2013

A Gift-Giving Guide for the Truly Broke

The holidays are upon us, and, as has been the case since I started college, I have no money. Perhaps you, too, have blown your would-be holiday gift budget on something frivolous like, say, rent. This is when the season of giving can get tricky. You don't want to spend outside your means, but you don't want to look like a cheapskate, either. I've navigated these waters for years and spoken with some etiquette experts to get their professional advice. Here's more than a nickel's worth of our tips — for free.

See Also: Ways to Waste Money During the Holidays Set price limits and prioritize.

Assess your finances and determine what you can afford to spend on holiday gifts. And don't confuse what you can afford with how much you think you're expected to spend. "Operating within a budget that is reasonable for you is part of having good etiquette," says Daniel Post Senning, of the Emily Post Institute. "It's important to stay within your parameters."

Make a list of everyone for whom you'd like to buy a gift, and rank them from most important — maybe your significant other — to least important — sorry, mailman. (Yes, you really should consider a holiday tip for your mail carrier and other service providers. Often, a note of appreciation will suffice.) Then set a spending limit for everyone on your list.

Buy gifts for the high-priority recipients first. That way, if you overspend on your mother and girlfriend, you can cut back a little on, say, your coworkers — instead of the other way around.

Keep it personal.

If done right, an inexpensive, personal gift can trump a fancy, big-ticket item. "What determines a great gift is how much thought and effort you put into the gift — not money, but time and attention to details," says Diane Gottsman, etiquette expert and owner of The Protocol School of Texas.

One of my greatest successes on this front was getting a poker buddy a deck of cards from every country I visited when I studied abroad — personal and poignant at $2 a pack. Of course, not everyone has such affordable fascinations; some like cards, but others have more expensive interests, such as golf and skiing. For the people on your list with fancier tastes, think tangential. Obviously you can't afford skis or a new set of clubs, so try to come up with small ways to make their favorite things better. For instance, you can get stencils that allow golfers to personalize their balls for $20 at www.tin-cup.com. My dad can expect a Wake Forest set soon.

Tap money-saving online resources.

If your favorite parts of the holiday season are taking pictures with men dressed as Santa and duking it out with fellow shoppers for the best deals, then, by all means, go to the mall. For the rest of us, holiday shopping is best done online, where you can save both time and money. Sign up for e-mail alerts from specific merchants or follow them on social media for special offers. Use price-comparison tools, such as PriceGrabber.com, to find the lowest prices; score even greater savings with coupon codes from sites such as RetailMeNot.com; and pay nothing for shipping directly to your gift recipients. (See Why You Should Do Your Holiday Shopping Online for more tips and resources.)

Give the gift of your time.

Doing something special for someone can show more love and forethought than giving him or her something tangible.

Just make sure you can follow through, even if you're busy. When my sister was in law school, she promised to organize all of my mother's photos into albums, which she eventually did — but only after it became an absolute point of contention. To avoid flaking, I usually try to dedicate my time on the gift before the big reveal. For example, one year my father and I converted all our old home movies to DVD for my mother. We turned on the TV on Christmas morning, and there I was on screen, taking my first steps. There wasn't a dry eye in the house.

Regift the right way.

Sure, it's tempting to pawn off an extra toaster on some unsuspecting cousin to save some cash and clear out your closet, especially now. As Post points out, "We live in a time of more and more disposable consumer goods. The likelihood that you have two or three of a popular blender has increased a lot."

Gottsman reminds us, though, that regifting is an option only when the circumstances are right: You have a brand-new, never-used item that you know the recipient would appreciate. Or maybe you received a gift card for a store at which you simply don't shop; if you know someone who will put it to good use, it might be the perfect gift to pass on.

But even with those criteria met, tread carefully. Regifting a present someone picked out for you can really hurt that person's feelings — and make you look tacky and thoughtless. Make sure you're not regifting in the same social circles.

Include a thoughtful card with your gift.

It's easy to forget in the rush of consumerism that has come to define the holiday season, but try to remember: We give gifts as reminders that we care about one another. If your card expresses this sentiment earnestly and thoughtfully, then the gift is secondary. You don't have to be poetic or have nice handwriting. You don't even have to buy a card. Just fold a piece of paper in half and write. Explain why you've chosen the attached gift and remind the recipient that you're truly grateful to have him or her in your life. After all, nothing says "I love you" like saying "I love you."

Sunday, December 8, 2013

Innovations that will transform home of the future

Magnets will soon do more than display kids' artwork on refrigerators. They'll actually be inside fridges, making them super efficient.

A new material that cools when demagnetized, expected to hit the market in about five years, could revolutionize the world of fridges and air conditioners by replacing the decades-old use of refrigerants.

"This technology has the potential to be more efficient by 25% to 30%," says Natarajan Venkatakrishnan, director of advanced technologies for GE Appliances, which has patents pending for the material. He says it's ready now, but General Electric is working to lower costs so consumers won't have to pay more.

Welcome to the home of the not-so-distant future. In an age of Google glasses and smart watches, the American dream itself will likely embody innovative technologies that could not only save energy and water but also improve health and bring nature inside.

GE expects the home of 2025 could have under-cabinet 3D printers, faucet sensors that detect bacteria in food and a laundry machine that stores clothes — after washing and drying — in compressed "pellet" form. And the milkman of yore may be back, as more groceries are delivered to exterior cooling units.

Some of these ideas may seem far-fetched, but recent breakthroughs and exhibits at last month's GreenBuild in Philadelphia — the annual meeting of the U.S. Green Building Council — reveal dozens of nifty products that are new or will soon be released.

Mushrooms and hemp, for example, are being used in insulation. At GreenBuild, New York-based Ecovative unveiled Myco Foam, which contains mycelium — mushroom "roots" that provide an airtight seal by growing and binding to the inside of a wall cavity. Also new are prefabricated panels of Hemcrete, made from the shiv or woody core of industrial hemp and a limed-based binder.

New technologies are helping to boost efficiency. Last month, Panasonic introduced Exterios, a combined heating-and-cooling system that's at le! ast twice as efficient as most furnaces and air conditioners. It has inverter technology that continually adjusts the compressor's rotation speed as well as a sensor that detects whether someone is in a room and automatically adjusts the temperature.

More innovation is coming. "There's tremendous runway still left with energy efficiency," says John Mandyck, vice president of sustainability at United Technologies, which is now making solar-powered elevators. "What's really exciting about the future is the integrated building or home — how all the systems work together."

• Automation. What's making this integration possible is the explosion in smart products — appliances, lights, shades.

This year, Whirlpool introduced four higher-end appliances — a dishwasher, fridge, washer and dryer — that can be remotely controlled with a smartphone app. Users can monitor energy rates and consumption.

Crestron has shades and draperies that can be remotely lowered or raised. "We see a lot of residential users putting in photo-cell sensors," says marketing manager Claudia Barbiero, noting these sensors automatically adjust window coverings depending on how much daylight enters a room. She says automation is especially helpful to homeowners with huge picture or second-story windows.

Several companies, including Crestron, have recently introduced home automation devices that allow users to set security alarms, turn lights on or off, program a room's temperature or start a load of laundry. Other gizmos allow access to data on smart meters, which track a home's energy use and report it back to the utility.

"Coming to a home near you very soon are small devices that can fit in the palm of your hand and will be able to read your smart meter," says Michel Kamel, CEO of California-based MelRok, adding they'll cost less than $100 and will help residents manage their energy use. Early next year, his company will release its own version.

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"We can measure and control everything — every outlet, every light switch, every mechanical system and every fixture," says David Gottfried, founder of the U.S. Green Building Council. He estimates monitoring can help consumers save 30% to 50% of energy and water.

• Smart windows. Another product that can be remotely operated, via an iPad app, is new electrochromic window glass. SageGlass Simplicity, a glazing for windows in commercial buildings that can be darkened or lightened to control glare and heat gain, made its debut last month.

Pricey windows that can be tuned, like an engine, are starting to enter the residential market, as well. Last year, View (formerly Soladigm), began selling windows with thin-film electrochromic material between the panes. When a low-voltage current is applied, the material can reflect or absorb light and change the glass' color.

A smarter, less costly window is in the works. The U.S. Department of Energy's Lawrence Berkeley National Laboratory announced in August that it designed a new material — a thin coating of nanocrystals embedded in glass that can modify sunlight as it passes through a window.

"When used as a window coating, our new material can have a major impact on building energy efficiency," Delia Milliron, a Berkeley Lab chemist who led the research, said in announcing the breakthrough. The coating can control both visible and heat-producing near-infrared light so occupants can enjoy natural light without unwanted heat.

In October at the 2013 Solar Decathlon in Irvine, California, Middlebury College showcased a home that's powered by solar panels atop an exterior w! alkway. I! ts students say this approach, as shown here in a sketch, allows the house to face the street with the panels can face the sun.(Photo: Courtesy of Middlebury College)

• Solar canopies. Rooftop solar is booming nationwide as more companies offer leasing options that allow customers to installs panels atop their home with no upfront costs. Now, solar is moving beyond the roof.

Next year, Princeton-based NRG Energy will begin selling the gazebo-like Solar Canopy, which has solar panels on top. Once assembled, the modular kits could enable homes to go off grid or, by storing energy in batteries within the canopy, provide back-up power in case the grid goes down.

"In the wake of Hurricane Sandy's destruction, NRG began to take a more urgent look at providing a solution that could meet basic power needs in the event of a grid emergency," Tom Doyle, CEO of NRG Solar, said while unveiling the product in October.

Also next year, Quebec-based Renewz plans to begin selling residential Solar Charging Carports for about $30,000, says company CEO Sass Peress. The carport generates solar power that can be used to charge an electric vehicle or to supplement a home's energy.

Walkways may also go solar. At this year's Solar Decathlon, a bi-annual competition to see which university team can build the best solar home, Vermont's Middlebury College put solar panels atop an exterior walkway, providing a shaded entry to the house and optimal orientation to the sun.

"Our house can orientate to the street whereas our solar panels can orientate to the sun," says Cordelia Newbury, Middlebury's team manager. "This allows for anyone in a residential community to have solar."

• One-gallon flush. Toilets that used five gallons of water per flush were once the industry norm, but new ones use 80% less.

Kohler unveiled a product last year that uses 1.28 gallons per flush. Instead of relying on a flapper that only partially opens during a flush, it uses an AquaPiston canister that lift! s complet! ely off the valve, allowing water from 360 degrees to swoop in.

This year, after years of development, Toto introduced the 1G, a toilet that uses only one gallon. Its secret is a "Double Cyclone" flushing system, which uses two nozzles, rather than rim holes, to propel water more efficiently around the bowl

Consumers are seeking more efficient toilets, because water bills are often rising faster than electric ones, says Toto's Jason Fitzsimmons.

Modular kits to grow plants on walls or shelves inside a home are proliferating as consumers look to bring nature inside. Some systems were on display in November at the 2013 GreenBuild at the Pennsylvania Conference Center in Philadelphia.(Photo: Wendy Koch)

• Living walls. One of the most dramatic changes at this year's Solar Decathlon and GreenBuild was the plethora of wall and shelving products for growing plants.

"We've seen a great increase in living walls in the residential market," says Ryan Burrows of New Jersey-based EcoWalls, which debuted a "chef's wall garden" earlier this year that cultivates herbs and veggies.

Modular units that are easy to install and maintain are gaining popularity, says Curtis Alexander of Urban Jungle, a Philadelphia company that installs such systems for about $140 per square foot — excluding irrigation costs.

"People want more green in their lives," he says, adding he expects bio-walls — now typically 200 to 500 square feet — will get bigger.

"They're helping people connect to nature," says Nadav Malin, president of BuildingGreen, a company that researches eco-friendly building products. He says he's not yet convinced that small bio-walls improve indoor air quality as their advocates suggest, but he adds: "There's a s! trong psy! chological benefit."