Wednesday, July 31, 2013

10 Best Oil Stocks To Own Right Now

Zcopley, Flickr.com

"Bitcoins" either sound like a futuristic, implantable, laser-guided and rocket-pack equipped form of money, or the latest coin-shaped chocolate snack. In reality, it's probably a bit of both. The bitcoin, a digital currency, started the year worth about $15. Less than four months later, one bitcoin now trades above $70. While this past performance may be enticing and a sign of its legitimacy as a future currency, the bitcoin market is full of risks -- risks that may make bitcoins worth as much as a foil-wrapped piece of sugar.

Bitcoin: A Crypto-Currency

Bitcoin is based around the idea of a currency created and transacted through cryptography instead of issued and tracked through a central bank. And to add to its mystique, the creator of bitcoin only goes by a pseudonym and has never been positively identified.

10 Best Oil Stocks To Own Right Now: Boardwalk Pipeline Partners LP (BWP)

Boardwalk Pipeline Partners, LP is a limited partnership company. The Company owns and operates three interstate natural gas pipeline systems including integrated storage facilities. Its business is conducted by its primary subsidiary, Boardwalk Pipelines, LP (Boardwalk Pipelines) and its subsidiaries, Gulf Crossing Pipeline Company LLC (Gulf Crossing), Gulf South Pipeline Company, LP (Gulf South) and Texas Gas Transmission, LLC (Texas Gas) (together, the operating subsidiaries), which consist of integrated natural gas pipeline and storage systems. During the year ended December 31, 2011, it formed Boardwalk Midstream, LP (Midstream), and its operating subsidiary, Boardwalk Field Services, LLC (Field Services), which is engaged in the natural gas gathering and processing business. In December 2011, Boardwalk HP Storage Company, LLC (HP Storage), a joint venture between Boardwalk Pipelines and Boardwalk Pipelines Holding Corp. (BPHC) acquired Petal Gas Storage, L.L.C. (Petal), Hattiesburg Gas Storage Company (Hattiesburg). In December 2011, it acquired a 20% equity interest in HP Storage.

The Company�� pipeline systems originate in the Gulf Coast region, Oklahoma and Arkansas and extend north and east to the midwestern states of Tennessee, Kentucky, Illinois, Indiana and Ohio. It serves a mix of customers, including producers, local distribution companies (LDCs), marketers, electric power generators, direct industrial users and interstate and intrastate pipelines. The Company provides a portion of its pipeline transportation and storage services, through firm contracts, under which the Company�� customers pay monthly capacity reservation charges. Other charges are based on actual utilization of the capacity under firm contracts and contracts for interruptible services. During 2011, approximately 82% of its revenues were derived from capacity reservation charges under firm contracts; approximately 14% of its revenues were derived from charges-based on actual utilization under firm contr! acts, and approximately 4% of its revenues were derived from interruptible transportation, interruptible storage, parking and lending (PAL) and other services. Its expansion projects include South Texas Eagle Ford Expansionand Marcellus Gathering System and HP Storage.

Pipeline and Storage Systems

The Company�� operating subsidiaries own and operate approximately 14,200 miles of pipelines, directly serving customers in twelve states and indirectly serving customers throughout the northeastern and southeastern United States through numerous interconnections with unaffiliated pipelines. In 2011, its pipeline systems transported approximately 2.7 trillion cubic feet of gas. Average daily throughput on its pipeline systems during 2011 was approximately 7.3 billion cubic feet. Its natural gas storage facilities are comprised of eleven underground storage fields located in four states with aggregate working gas capacity of approximately 167.0 billion cubic feet. the Company operates the assets of HP Storage on behalf of the joint venture.

The principal sources of supply for our pipeline systems are regional supply hubs and market centers located in the Gulf Coast region, including offshore Louisiana, the Perryville, Louisiana area, the Henry Hub in Louisiana and the Carthage, Texas area. Its pipelines in the Carthage, Texas area provide access to natural gas supplies from the Bossier Sands, Barnett Shale, Haynesville Shale and other gas producing regions in eastern Texas and northern Louisiana. The Henry Hub serves as the designated delivery point for natural gas futures contracts traded on the New York Mercantile Exchange. Its pipeline systems also have access to unconventional mid-continent supplies, such as the Woodford Shale in southeastern Oklahoma and the Fayetteville Shale in Arkansas. The Company also accesses the Eagle Ford Shale in southern Texas; wellhead supplies in northern and southern Louisiana and Mississippi; and Canadian natural gas through an unaffil! iated pip! eline interconnect at Whitesville, Kentucky.

Gulf Crossing

The Company�� Gulf Crossing pipeline system originates near Sherman, Texas, and proceeds to the Perryville, Louisiana area. The market areas are in the Midwest, Northeast, Southeast and Florida through interconnections with Gulf South, Texas Gas and unaffiliated pipelines.

Gulf South

The Company�� Gulf South pipeline system is located along the Gulf Coast in the states of Texas, Louisiana, Mississippi, Alabama and Florida. The on-system markets directly served by the Gulf South system are generally located in eastern Texas, Louisiana, southern Mississippi, southern Alabama, and the Florida Panhandle. These markets include LDCs and municipalities located across the system, including New Orleans, Louisiana; Jackson, Mississippi; Mobile, Alabama; and Pensacola, Florida, and other end-users located across the system, including the Baton Rouge to New Orleans industrial corridor and Lake Charles, Louisiana. Gulf South also has indirect access to off-system markets through numerous interconnections with unaffiliated interstate and intrastate pipelines and storage facilities. These pipeline interconnections provide access to markets throughout the northeastern and southeastern United States.

Gulf South has two natural gas storage facilities. The gas storage facility located in Bistineau, Louisiana, has approximately 78 billion cubic feet of working gas storage capacity from which Gulf South offers firm and interruptible storage service, including no-notice service. Gulf South�� Jackson, Mississippi, gas storage facility has approximately five billion cubic feet of working gas storage capacity, which is used for operational purposes and is not offered for sale to the market.

Texas Gas

The Company�� Texas Gas pipeline system originates in Louisiana, East Texas and Arkansas and runs north and east through Louisiana, Arkansas, Mississippi, Tennessee, K! entucky, ! Indiana, and into Ohio, with smaller diameter lines extending into Illinois. Texas Gas directly serves LDCs, municipalities and power generators in its market area, which encompasses eight states in the South and Midwest and includes the Memphis, Tennessee; Louisville, Kentucky; Cincinnati and Dayton, Ohio, and Evansville and Indianapolis, Indiana metropolitan areas. Texas Gas also has indirect market access to the Northeast through interconnections with unaffiliated pipelines. Texas Gas owns nine natural gas storage fields, of which it owns the majority of the working and base gas. Texas Gas uses this gas to meet the operational requirements of its transportation and storage customers and the requirements of its no-notice service customers.

Field Services

In 2011, the Company formed its Field Services subsidiary and transferred to it approximately 100 miles of gathering and transmission pipeline. In 2012, the Company transferred to Field Services an additional 240 miles of pipeline and two compressor stations. Field Services is developing gathering and processing capabilities in south Texas and Pennsylvania.

Advisors' Opinion:
  • [By Michael Brush]

    As for Boardwalk Pipeline Partners (NYSE:BWP), it operates natural gas pipelines in the U.S. transporting about 10% of the nation's natural gas on an annual basis. Although it generates just 6% of Loews' overall net income, it does so on a consistent basis. Personally, I like the natural gas tie-in. Lastly, it owns 100% of privately operated HighMount Exploration and Production, a Texas-based company that produces natural gas, LNG and oil in Texas and Oklahoma. In 2012, as a result of lower natural gas prices, it's had to take large impairment charges on its natural gas revenue. I'd expect its situation to improve in 2013. Loews has increased its book value per share by approximately 9.5% on an annualized basis over the past five years. Owning its stock instead of the energy-related holdings directly allows you to benefit from its other holdings at the same time. 

10 Best Oil Stocks To Own Right Now: ONEOK Partners L.P.(OKS)

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

Advisors' Opinion:
  • [By Louis Navellier]

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

Top 10 Performing Companies For 2014: Transportadora de Gas del Sur SA (TGS)

Transportadora de Gas del Sur S.A. (TGS) is engaged in the transportation of natural gas and production and commercialization of natural gas liquids (NGL). TGS�� pipeline system connects major gas fields in southern and western Argentina with gas distributors and industries in those areas and in the greater Buenos Aires area. The Company also renders midstream services, which consist of gas treatment, removal of impurities from the natural gas stream, gas compression, wellhead gas gathering and pipeline construction, operation, and maintenance services. The Company operates in three segments: natural gas transportation services through its pipeline system; NGL production and commercialization, and other services, which include midstream and telecommunication services.

During the year ended December 31, 2009, the Company�� gas transportation represented approximately 42% of total net revenues. During 2009, its NGL production and commercialization segment accounted for 50% of the total revenues of the Company. During 2009, its other services segment accounted for 8% of total revenues of the Company. Its other services segment consists of midstream and telecommunications services. Through midstream services, TGS provides integral solutions related to natural gas from wellhead up to the transportation systems. The services consists of gas gathering, compression and treatment, as well as construction, operation and maintenance of pipelines, which are generally rendered to natural gas and oil producers at wellhead. The customers��portfolio also includes distribution companies, industrial users, power plants and refineries.

During 2009, the Company provided a range of technical services to different customers. The services consisted of connections to the transportation system, engineering inspections, project management and professional technical counseling. Telecommunication services are provided through Telcosur S.A. (Telcosur), who renders services both as an independent c! arrier of carriers and to corporate clients within its area. Telcosur has a digital land radio connection system.

10 Best Oil Stocks To Own Right Now: Archer Ltd (ARCHER.OL)

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.

10 Best Oil Stocks To Own Right Now: National-Oilwell Inc.(NOV)

National Oilwell Varco, Inc. designs, constructs, manufactures, and sells systems, components, and products used in oil and gas drilling and production; provides oilfield services and supplies; and distributes products, and provides supply chain integration services to the upstream oil and gas industry worldwide. Its Rig Technology segment offers offshore and onshore drilling rigs; derricks; pipe lifting, racking, rotating, and assembly systems; rig instrumentation systems; coiled tubing equipment and pressure pumping units; well workover rigs; wireline winches; wireline trucks; cranes; and turret mooring systems and other products for floating production, storage and offloading vessels, and other offshore vessels and terminals. The company?s Petroleum Services & Supplies segment provides various consumable goods and services to drill, complete, remediate, and workover oil and gas wells and service pipelines, flowlines, and other oilfield tubular goods. It also manufacture s, rents, and sells products and equipment for drilling operations, including drill pipe, wired drill pipe, transfer pumps, solids control systems, drilling motors, drilling fluids, drill bits, reamers and other downhole tools, and mud pump consumables. In addition, this segment provides oilfield tubular services comprising the provision of inspection and internal coating services; equipment for drill pipe, line pipe, tubing, casing, and pipelines; and coiled tubing pipes and composite pipes. Its Distribution Services segment sells maintenance, repair and operating supplies, and spare parts to drill site and production locations. The company primarily serves drilling contractors, shipyards and other rig fabricators, well servicing companies, pressure pumping companies, oil and gas companies, supply stores, and pipe-running service providers. National Oilwell Varco, Inc. was founded in 1862 and is based in Houston, Texas.

Advisors' Opinion:
  • [By Admin]

    Designer and maker of oil rig equipment, National-Oilwell Varco Inc. (NYSE: NOV), should benefit from the rising price of oil due to the crisis in the Middle East. With increased pressure to find new oil fields, the most stable investments in the energy sector appear to be in the oil well services and equipment stocks. NOV supplies equipment to deepwater drilling, shale operations and natural gas exploration.?

    S&P notes that, in the near future, there may be changes in regulatory measures pertaining to the Gulf of Mexico that could benefit NOV. S&P has a “four-star buy” on NOV with a target of $85.

    But technically, the stock is picking up volume, and if it can break through the triple-top at $89, it could have a major move up as it accelerated away from its bullish support line. Buy NOV now for a one-month trade to $89. Longer-term investors should hold this stock for long-term capital gains.

10 Best Oil Stocks To Own Right Now: New Concept Energy Inc (GBR)

New Concept Energy, Inc. (New Concept), incorporated on May 30, 1991 in, owns and operates oil and gas wells in Ohio and West Virginia. The Company, through its wholly owned subsidiaries Mountaineer State Energy, Inc. and Mountaineer State Operations, LLC. operates oil and gas wells and mineral leases in Athens and Meigs Counties in Ohio and in Calhoun, Jackson and Roane Counties in West Virginia. As of March 30, 2012, the Company had 159 producing gas wells, 27 non-producing wells and related equipment and mineral leases covering approximately 20,000 acres. The Company operates in two primary business segments: oil and gas operations and retirement facilities.

During the year ended December 31, 2011, the Company had drilled eight wells. New Concept focuses on North American onshore oil and natural gas drilling and exploration. The Company's properties are concentrated in the Appalachian Basin, Fort Worth Basin, and the Arkoma Basin. The Company leases and operates Pacific Pointe Retirement Inn (Pacific Pointe) in King City, Oregon. Pacific Pointe has a capacity of 114 residents and provides community living with basic services, such as meals, housekeeping, laundry, 24/7 staffing, transportation and social and recreational activities.

10 Best Oil Stocks To Own Right Now: Transdigm Group Incorporated(TDG)

TransDigm Group Incorporated designs, produces, and supplies engineered aircraft components for use on commercial and military aircraft principally in the United States. The company?s products include mechanical/electro-mechanical actuators and controls, ignition systems and engine technology, pumps and valves, power conditioning devices, AC/DC electric motors and generators, NiCad batteries and chargers, engineered latching and locking devices, rods and locking devices, engineered connectors and elastomers, cockpit security components and systems, cockpit displays, aircraft audio systems, lavatory components, engineered interior surfaces, and lighting and control technology. Its customers comprise distributors of aerospace components; commercial airlines, including national and regional airlines; commercial transport and regional and business aircraft original equipment manufacturers (OEMs); various armed forces of the United States and foreign governments; defense OEMs; system suppliers; and various other industrial customers. TransDigm Group Incorporated was founded in 1993 and is based in Cleveland, Ohio.

10 Best Oil 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 Fabian]

    ConocoPhilips(COP) is a close second. This is a Warren Buffett darling that will benefit from its spinoff of refining assets some time in 2012.

    Conoco also continues to pay a consistent and reliable 3.75%. Note that COP has underperformed the rest of the sector recently. Correlations are normally so close that such an underperformance by one stock can point the way to value.

  • [By Hawkinvest]

    ConocoPhillips (COP) is a leading oil and gas company involved in exploration, production, refining, and transportation of petroleum products. ConocoPhillips appears undervalued, as it offers a solid dividend yield and a price to earnings ratio of just about 9 times earnings. This stock could have an upside catalyst in the coming months, as the company plans to spin-off the refining division, which will become a separate, publicly traded company called Phillips 66. This company has extensive oil reserves which can grow as the company makes new finds, and these reserves also grow more valuable as the price of oil trends higher. This stock has been rising, so waiting for pullbacks makes sense. Recently, it's been possible to buy Conoco shares at below $70 per share, and that would be a very attractive entry point.

    Here are some key points for COP:

    Current share price: $73.83

    The 52 week range is $58.65 to $81.80

    Earnings estimates for 2011: $8.27 per share

    Earnings estimates for 2012: $8.75 per share

    Annual dividend: $2.64 per share which yields 3.6%

  • [By Dave Friedman]

    Institutional investors bought 49,282,090 shares and sold 75,744,640 shares, for a net of -26,462,550 shares. This net represents 1.79% of common shares outstanding. The number of shares outstanding is 1,479,330,000. The shares recently traded at $65.51 and the company’s market capitalization is $89,946,840,000.00. About the company: ConocoPhillips is an international, integrated energy company which operates in several business segments. The Company explores for and produces petroleum, and refines, markets, supplies, and transports petroleum. ConocoPhillips also gathers and processes natural gas, and produces and distributes chemicals and plastics.

10 Best Oil Stocks To Own Right Now: Kodiak Oil & Gas Corp (KOG)

Kodiak Oil & Gas Corp. (Kodiak) is an independent energy company focused on the exploration, exploitation, acquisition and production of crude oil and natural gas in the United States. Kodiak has developed an oil and natural gas asset base of proved reserves, as well as a portfolio of development and exploratory drilling opportunities on high-potential prospects with an emphasis on oil resource plays. The Company�� oil and natural gas reserves and operations are primarily concentrated in the Williston Basin of North Dakota. As of January 31, 2012, it had approximately 169,000 net acres under lease, including 157,000 net acres in the Bakken oil play in the Williston Basin of North Dakota and Montana. In January 2012, the Company acquired Williston Basin oil and gas producing properties and undeveloped leasehold. On January 10, 2012, it acquired certain oil and gas leaseholds, overriding royalty interests and producing properties located in North Dakota.

10 Best Oil Stocks To Own Right Now: Tesoro Petroleum Corporation(TSO)

Tesoro Corporation, together with its subsidiaries, engages in refining and marketing petroleum products in the United States. It operates in two segments, Refining and Retail. The Refining segment refines crude oil and other feed stocks into transportation fuels, such as gasoline, gasoline blendstocks, jet fuel, and diesel fuel, as well as other products, including heavy fuel oils, liquefied petroleum gas, petroleum coke, and asphalt. This segment also sells refined products in the wholesale market primarily through independent unbranded distributors; and in the bulk market primarily to independent unbranded distributors, other refining and marketing companies, utilities, railroads, airlines and marine, and industrial end-users. It owns and operates 7 refineries with a combined crude oil capacity of 665 thousand barrels per day. The Retail segment sells gasoline, diesel fuel, and convenience store items through company-operated retail stations, and third-party branded dea lers and distributors in the western United States. As of December 31, 2011, this segment had 1,175 branded retail stations under the Tesoro, Shell, and USA Gasoline brands. The company was formerly known as Tesoro Petroleum Corporation and changed its name to Tesoro Corporation in November 2004. Tesoro Corporation was founded in 1939 and is headquartered in San Antonio, Texas.

Tuesday, July 30, 2013

5 Reasons to Worry About Next Week

The economy is showing signs of fumbling the recovery.

Even though some Fed members have suggested easing back on central bank stimulus, the coast isn't exactly clear. Despite the spike in home sales and this week's better-than-expected report on new claims for jobless benefits, we still saw a report showing that manufacturing has slowed for the second month in a row.

The news isn't just iffy on the macro level. There are also more than a few companies that aren't pulling their own weight in this supposed economic recovery.

There are still plenty of names posting lower earnings than they did a year ago. Let's go over a few of the companies that are expected to go the wrong way on the bottom line next week.

Company

Latest Quarter EPS (estimated)

Year-Ago Quarter EPS

Seadrill (NYSE: SDRL  )

$0.58

$0.71

Guidewire (NYSE: GWRE  )

$0.03

$0.10

Splunk (NASDAQ: SPLK  )

($0.06)

($0.04)

Yingli Green Energy (NYSE: YGE  )

($0.43)

($0.20)

Joy Global (NYSE: JOY  )

$1.58

$2.04

Source: Thomson Reuters.

Clearing the table
Let's start at the top with Seadrill. The deep-sea offshore oil-drilling rig contractor has been magnetic to income investors seeking out beefy dividends. Seadrill's 8.4% yield is certainly attractive. Is it sustainable? Payout chasers need to be careful when their investments start reporting dips in profitability. If the trend continues to worsen, the chunky dividend checks will be endangered.

Thankfully, that isn't the case at Seadrill. Yes, net income is expected to take a hit in Tuesday's report, but analyst see earnings climbing 29% for all of 2013 and another 31% come next year.

Guidewire is a provider of enterprise software solutions for the property and casualty insurance industry. It went public last year at $13, and has gone on to more than triple in value. You certainly don't expect that kind of ascending stock chart to be accompanied by a company with profits going the other way.

Top-line growth is still there. The pros see Guidwire's revenue increasing at a reasonable 12% clip in its latest quarter. The problem here is contracting margins, and that often happens when a company is early in its growth cycle and investing in expanding its reach.

Splunk is another of last year's hot IPOs. The "big data" specialist has gone on to more than double since going public at $17.

Splunk provides the software that thousands of companies, government agencies, and universities use to get smarter by analyzing the streams of real-time and historical machine data that can be used to improve operations.

Just like Guidewire, there isn't a growth crisis at Splunk. Analysts see a hearty 45% surge in revenue. The problem here is that Splunk has been losing money. It did manage to squeeze out a rare profitable showing three months ago, but the pros see a return to red ink this time around.

Yingli's future is bright. Few deny the long-term significance of solar energy. The problem for Yingli is that dicey global economies have forced countries and corporations to scale back on the costly initial outlays to go public, leaving the vertically integrated maker of photovoltaic products posting widening losses.

Shares of Yingli did open sharply higher today after it announced a lucrative deal to provide multicrystalline photovoltaic modules to a major Malaysian power plant. However, that deal obviously had no bearing on Yingli's recently concluded quarter.

Finally, we have Joy Global. The maker of mining equipment was a big winner when metal prices were soaring and emerging markets were digging deep for natural resources. It's a different scene these days, and Joy Global joins Yingli as a company projected to post a sharp drop on the bottom line and a double-digit percentage decline in revenue.

Joy Global has managed to beat profit targets in three of its past four quarters, but analysts don't see its revenue growing again on an annual basis until fiscal 2015.

Why the long face, short-seller?
These companies have seen better days. The market has rewarded many of these stocks with reasonable gains over the past year, but they still haven't earned those upticks. Lower earnings translates into higher earnings multiples, and nobody wants to see that happen.

The good news here is that Wall Street already expects these companies to deliver shrinking bottom lines. In other words, the bad news is already baked into the shares.

The more I think about it, the less worried I become.

Start moving in the right direction
The best investing approach is to choose great companies and stick with them for the long term. The Motley Fool's free report "3 Stocks That Will Help You Retire Rich" names stocks that could help you build long-term wealth and retire well, along with some winning wealth-building strategies that every investor should be aware of. Click here now to keep reading.

3 Things Magnum Hunter Resources Must Do to Win Back Investors

It's been a tough year for investors of Magnum Hunter Resources (NYSE: MHR  ) . As I write this, shares are down about 18% on the year, though shares had been down by more than 37% after the company announced that it was ditching its auditor. While the stock has slowly recovered, the company has three major action items to accomplish if it wants to win back investors.

1. File an annual report
It's nearly June and the company has yet to file its annual report. Magnum Hunter has hired BDO as its new auditor and the new target is to have the report completed by the end of June. Once the report is out, investors will have a much better picture of the company.

In addition to the report, investors will want to see if there are any impairments to be made to the company's assets, as well as if there will be any issues with its debt covenants. Once these uncertainties are cleared up, investors can really focus on the business' performance and potential instead of these distractions.

2. Finish refocusing
Earlier this year Magnum Hunter closed the sale of the bulk of its Eagle Ford Shale assets. The deal brought in about $400 million; however, it marked a peculiar transition away from liquids and back toward natural gas. Not only did the company sell this oil-rich production but it is now earmarking half of its planned 2013 Eagle Ford capital budget to its gassy acreage in Appalachia.

Magnum Hunter isn't finished with its transition plan as it has about $100 million-$150 million of additional non-core asset sales to complete this year. On top of that, the company needs to make a decision as to whether it will monetize its midstream assets which could be worth more than $750 million. Once investors have clarity as to what direction the company will be going, it should be a big confidence booster. Investors hate uncertainty and right now there is just too much of it at Magnum Hunter.

3. Execute its plan
Once the company can get past all this uncertainty it needs to execute on its plan to grow production and eventually turn the company that can generate significant free cash flow. It has a long way to go, but clarity here could be coming soon. For example, the company just started drilling its first well into the Utica Shale. The play isn't turning out how some producers had hoped which is adding to the company's risk. Devon Energy (NYSE: DVN  ) , for example is bailing on the play after its first few wells didn't turn out that well. The risk for Magnum Hunter is that its wells turn out to be duds. It doesn't have Devon's balance sheet strength, nor vast portfolio of opportunities to be drilling dry holes.

The other important area to watch is the Bakken. Magnum Hunter expects participate in the drilling of 30 wells this year while seeing the potential to drill more than 500 future wells. The company will need to be mindful of well costs which can range substantially. Last year, top Bakken producer Continental Resources (NYSE: CLR  ) was able to drill operated wells for about $9.2 million each, however, non-operated wells that it participated in had a weighted average well cost of $11.3 million. This year the company has gotten well costs down to $8.3 million while hoping to shave another $100,000 off of its well costs before the end of the year.

On the other end of the spectrum, Kodiak Oil & Gas (NYSE: KOG  ) spends about $10 million to drill its Bakken wells. The math in getting well costs down is pretty compelling. At the current cost to drill a well, Kodiak will drill about 75 wells this year; however, if it was able to cut its costs closer to Continental's levels the company could drill more than a dozen additional wells. For Magnum Hunter this means it needs to keep its well costs under control so that it can stretch its limited capital resources as far as possible.

Final Foolish thoughts
Magnum Hunter has a lot on its plate this year. The company needs to ensure that it provides its investors with an annual report as soon as possible in order to remove that cloud of uncertainty. In addition to that, the company needs to complete its refocusing efforts and then execute to grow the company into one that generates sustainable cash flow. If it's able to do those three things then it should be able to win back the confidence of investors and prove the doubters to be wrong. 

With all the uncertainty surrounding the stock, investors might want to look elsewhere. Kodiak Oil & Gas, for example is a much more dynamic growth story at the moment. The company offers great opportunities, however, with those opportunities come great risks. To find out whether Kodiak is currently a buy or a sell, you're invited to check out The Motley Fool's premium research report on the company, which comes with a full year of updates and analysis as key news breaks. To get started simply click here now.

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Monday, July 29, 2013

10 Best Cheap Stocks To Invest In Right Now

Last week we saw Citigroup (NYSE: C  ) , Bank of America (NYSE: BAC  ) and JPMorgan Chase's (NYSE: JPM  ) share prices dropping after the news that Japanese stocks were falling and other signs of weakness in the Asian markets. But since then, the Japanese Nikkei has fallen further, but the banks have recovered. In the video below, Motley Fool contributor Jessica Alling discusses why banks are exposed to the weaknesses in Asian markets, how they can offset any issues, and how long-term investors should categorize the most recent dip in share price.

Citigroup's stock looks tantalizingly cheap. Yet the bank's balance sheet is still in need of more repair, and CEO Michael Corbat still needs to prove himself. Should investors be treading carefully, or jumping on an opportunity to buy? To help figure out whether Citigroup deserves a spot in your portfolio, I invite you to read our premium research report on the bank today.�We'll fill you in on both reasons to buy and reasons to sell Citigroup, and what areas Citigroup�investors need to watch going forward.�Click here now�for instant access to our best expert's take on Citigroup.

10 Best Cheap 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 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."

10 Best Cheap Stocks To Invest In Right Now: Express-1 Expedited Solutions Inc.(XPO)

XPO Logistics, Inc. provides third-party logistics services using a network of relationships with ground, sea, and air carriers in the United States, Mexico, and Canada. It operates in three segments: Express-1, Concert Group Logistics, and Bounce Logistics. The Express-1 segment offers ground expedited surface transportation services for freight. It operates a fleet ranging from cargo vans to semi tractor trailer units. The Concert Group Logistics segment provides domestic and international freight forwarding services through a network of independently owned stations. Its domestic freight forwarding services include air charter, expedites, and time sensitive services, as well as cost sensitive services comprising deferred delivery, less than truckload, and full truck load services; and international freight forwarding services consist of on-board courier and air charters, time sensitive services, less-than-container and full-container-loads, and vessel charters. This segm ent also offers documentation on international shipments, customs clearance and banking, trade show shipment management, time definite and customized product distributions, reverse logistics and on site asset recovery projects, installation coordination, freight optimization, and diversity compliance support services. The Bounce Logistics segment provides premium freight brokerage services for truckload shipments. The company serves approximately 4,000 retail, commercial, manufacturing, and industrial customers through 6 U.S. operations centers and 22 agent locations. It offers its services to the automotive manufacturing, automotive components and supplies, commercial printing, durable goods manufacturing, pharmaceuticals, food and consumer products, and high tech sectors. The company was formerly known as Express-1 Expedited Solutions, Inc. and changed its name to XPO Logistics, Inc. in September 2011. XPO Logistics, Inc. was founded in 1989 and is based in Buchanan, Michi gan.

Advisors' Opinion:
  • [By Skousen]

    There is nothing exciting about the shipping business except that the growth in this industry can be exponential in an economy that is barely improving. Business conditions for shippers improve much more dramatically than the overall economy, and that’s exactly why you want to own shipping stocks in an economy emerging from recession — like we are right now — and avoid them in a slowing economy. Of all the shipping and transport companies out there right now, I like -1 Expedited Solutions Inc. (AMEX: XPO) the best because it grows faster from a tiny revenue base.

    In November, XPO announced Q3 results that beat by 150%, coming in at 5 cents per share versus an analyst estimate of 2 cents. Revenue rose by 70% to $44.4 million, up from $26.1 million in the same quarter of last year. The stock soared flowing the report and should continue to gain as shipping and freight companies are the first to rebound in an economic recovery. Buy XPO below $3.

Top 10 Undervalued Companies To Invest In 2014: Oracle Corporation(ORCL)

Oracle Corporation, an enterprise software company, develops, manufactures, markets, distributes, and services database and middleware software, applications software, and hardware systems worldwide. It licenses of database and middleware software, including database management software, application server software, service-oriented architecture and business process management software, data integration software, business intelligence software, identity and access management software, content management software, portals and user interaction software, development tools, and Java; and applications software comprising enterprise resource planning, customer relationship management, enterprise performance management, supply chain management, business intelligence applications, enterprise portfolio project management, Web commerce, and industry-specific applications software. The company also offers customers with rights to unspecified software product upgrades and maintenance releases; Internet access to technical content; and Internet and telephone access to technical support personnel. In addition, its hardware systems products consist of computer server and hardware-related software, including the Oracle Solaris Operating System; and storage products, such as tape, disk and networking solutions for open systems and mainframe server environments. Its hardware systems support solutions include software updates for the software components. Further, the company offers consulting solutions in business and IT strategy alignment, enterprise architecture planning and design, initial product implementation and integration, and ongoing product enhancements and upgrades; cloud services, including Oracle Cloud Services and Advanced Customer Services; and education solutions comprising instructor-led, media-based, and Internet-based training in the use of its software and hardware products. The company was founded in 1977 and is headquartered in Redwood Ci ty, California.

Advisors' Opinion:
  • [By Goodwin]

    Oracle (ORCL), a software enterprise company, is the only Overweight-rated company in this market segment. With the introduction of a new Exadata product line, Oracle is set to enjoy a positive secular trend. Its current market price of $29.58 has fluctuated in the range of $24.72 to $36.50. Earnings per share of $1.76 have been posted and market capitalization stands at $149.47 billion. Its recent P/E ratio was 16.88x and the company showed a net profit margin of 23.99%.

  • [By Bill]  

    Larry Ellison has created a winner in Oracle. This stock has great numbers, cash on hand, and upbeat expectations. All the above are things I like.

  • [By Fabian]

    Oracle. This software service giant, which deals in a slew of databases, applications, product support, and other services, has also made some smart acquisitions, Resendes says. "The companies they've acquired--PeopleSoft, BEA, and Seibold--really round out the product line." What's more, Oracle's database business has been steadily gaining market share, he says, which is "a positive sign because they're starting to eat up competitors." Oracle's stock, recently $18, is trading slightly below what it was a year ago. Resendes thinks that share price could rise 25 percent.

10 Best Cheap Stocks To Invest In Right Now: Alliance Holdings GP L.P.(AHGP)

Alliance Holdings GP, L.P., through its subsidiaries, produces and markets coal primarily to utilities and industrial users in the United States. It produces a range of steam coal with varying sulfur and heat contents. The company operates nine underground mining complexes in Illinois, Indiana, Kentucky, Maryland, and West Virginia. As of December 31, 2010, it had approximately 697.4 million tons of proven and probable coal reserves in Illinois, Indiana, Kentucky, Maryland, Pennsylvania, and West Virginia. In addition, the company leases land; and operates a coal loading terminal, with a capacity of 8.0 million tons with ground storage of approximately 60,000 to 70,000 tons, on the Ohio River at Mt. Vernon, Indiana. Further, it engages in purchasing and selling coal; and providing services, including ash and scrubber sludge removal, coal yard maintenance, and arranging alternate transportation services. Alliance GP, LLC, serves as the general partner of the company. Allian ce Holdings GP, L.P. is based in Tulsa, Oklahoma.

Advisors' Opinion:
  • [By Chris Stuart]

    Alliance Holding(AHGP) is a diversified coal producer with mining operations in Kentucky, Indiana, Illinois, West Virginia and Maryland.

    The stock has slumped 18% in the past three months due to a secondary offering of 2.75 million shares, which was released in April for $52 a share. Shares are now trading $6 below the offering price.

    Management has stepped up and put its own money to work with CEO Joe Craft buying $3 million worth of stock last week. The company pays a dividend of $2.22 a share, with a yield of 5%. Alliance trades at a discount to other coal competitors at a P/E of 15. With expectations calling for 20% growth, the shares look attractive. TheStreet Ratings has a $61 price target on Alliance.

10 Best Cheap Stocks To Invest In Right Now: Freeport-McMoran Copper & Gold Inc.(FCX)

Freeport-McMoRan Copper & Gold Inc. engages in the exploration, mining, and production of mineral resources. The company primarily explores for copper, gold, molybdenum, silver, and cobalt. It holds interests in various properties, located in North and South America; the Grasberg minerals district in Indonesia; and the Tenke Fungurume minerals district in the Democratic Republic of Congo. As of December 31, 2010, the company?s consolidated recoverable proven and probable reserves totaled 120.5 billion pounds of copper, 35.5 million ounces of gold, 3.39 billion pounds of molybdenum, 325.0 million ounces of silver, and 0.75 billion pounds of cobalt. The company was founded in 1987 and is headquartered in Phoenix, Arizona.

Advisors' Opinion:
  • [By Income Hunter]

    Freeport-McMoRan is down to about 40% of its 2011 high. Just like the entire gold market, the company based out and by early September began to make bullish moves. I suspect Freeport-McMoRan will grow as much as 70% when the 50-day moving average moves above the 200-day moving average.

    Jefferies downgraded Alcoa (AA) and has expressed preference for Freeport-McMoRan demonstrating some of the benefits of the QE3. Along with this, operating activities are up and there was a vast improvement in accounts receivables from Q1 to Q2.

    I like Freeport-McMoRan because it is an industry leader, drawing investments most likely from QE3, and an improvement of assets will lead to a substantial growth both as a short- and long-term investment.

10 Best Cheap Stocks To Invest In Right Now: S&P Smallcap 600(PH)

Parker Hannifin Corporation manufactures fluid power systems, electromechanical controls, and related components worldwide. Its Industrial segment offers pneumatic and electromechanical components, and systems; filters, systems, and instruments to monitor and remove contaminants from fuel, air, oil, water, and other liquids and gases; connectors that control, transmit, and contain fluid; hydraulic components and systems for builders and users of industrial and mobile machinery and equipment; critical flow components for process instrumentation, healthcare, and ultra-high-purity applications; and static and dynamic sealing devices. This segment sells its products to original equipment manufacturers (OEMs) and their replacement markets in the manufacturing, transportation, and processing industries. The company?s Aerospace segment provides flight control systems and components, including hydraulic, electrohydraulic, electric backup hydraulic, electrohydrostatic, and electro -mechanical components for precise control of aircraft rudders, elevators, ailerons, and other aerodynamic control surfaces. It also provides electronics thermal management heat rejection systems, and single-phase and two-phase heat collection systems for radar, ISAR, and power electronics. This segment markets its products primarily to OEMs in the commercial, military, and general aviation markets, as well as to end users. Its Climate and Industrial Controls segment offers systems and components primarily for use in the mobile and stationary refrigeration, and air conditioning industry; and in fluid control applications in various industries, such as processing, fuel dispensing, beverage dispensing, and mobile emissions. This segment serves OEMs and their replacement markets. Parker-Hannifin Corporation markets its products through direct-sales employees, independent distributors, wholesalers, and sales representatives. The company was founded in 1918 and is headquartered i n Cleveland, Ohio.

Advisors' Opinion:
  • [By Putnam]

    Parker Hannifin (PH) operates in a broadly diversified engineering industry with peers such as General Electric (GE) and 3M Company (MMM). Its products serve aerospace, commercial, mobile and industrial markets.

    The 2011 fiscal year was stellar for Parker. An all time record of $12.3 billion in sales was reached, a 23.5% increase. Net income increased a whopping 90%.

    The common stock currently trades at a price to earnings ratio of 10.5, below the industry average of 14.8 and historical average of 14. Price to book ratio is 2.02 with price to cash flow being 7.3.

    Making comparisons in a broadly diversified industry is difficult, since products and service offerings vary greatly between businesses. Therefore, the peer company’s business lines and products were used as the main selection criteria for peer analysis.

10 Best Cheap Stocks To Invest In Right Now: Rent-A-Center Inc.(RCII)

Rent-A-Center, Inc., together with its subsidiaries, primarily engages in leasing household durable goods to customers on a rent-to-own basis. The company?s stores offer durable products, such as consumer electronics, appliances, computers, and furniture and accessories under flexible rental purchase agreements that allow the customer to obtain ownership of the merchandise at the conclusion of an agreed upon rental period. It also provides merchandise on an installment sales basis in its stores. As of December 31, 2010, the company operated 3,008 company-owned stores in the United States, and in Canada, Puerto Rico, and Mexico, including 42 retail installment sales stores under the names ?Get It Now? and ?Home Choice?; and 18 rent-to-own stores located in Canada under the ?Rent-A-Centre? name. It also operates 209 franchised rent-to-own stores in 32 states under the ColorTyme trade name; and 384 kiosk locations under the ?RAC Acceptance? model. In addition, the company, th rough its ColorTyme?s franchised stores, offers custom rims and tires for sale or rental under the trade names ?RimTyme? or ?ColorTyme Custom Wheels?. Rent-A-Center, Inc. was founded in 1986 and is headquartered in Plano, Texas.

Advisors' Opinion:
  • [By Chris Stuart]

    Rent-A-Center(RCII), the largest rent-to-own operator in the U.S., rents furniture and electronics to low- to middle-income customers.

    The company has struggled in the past three months, underperforming its closest competitor, Aaron's Rents(AAN), by over 25%. While Aaron's has executed flawlessly, Rent-A-Center has not, as the company missed earnings estimates. Management blamed the first-quarter fallout on poor weather conditions in February and limited availability of refund-anticipation loans for consumers. Despite the hiccup, management has stuck to its 2011 guidance of $2.90 to $3.10 in EPS, equating to revenue growth of 5% to 7% and earnings-per-share growth of 3% to 10%.

    Key initiatives to boost growth, such as RAC Acceptance (kiosks in third-party stores that arrange rent-to-own programs) are in place. Management has done a good job of managing its debt position and recently boosted the dividend by 167% (now at a 2.2% yield). If management can achieve $3 in EPS for the full year, the stock looks cheap, trading at just 9.7 times earnings (a discount to 15 times P/E for Aaron's). TheStreet Ratings has a $41 price target on shares of Rent-A-Center.

10 Best Cheap Stocks To Invest In Right Now: MetroPCS Communications Inc.(PCS)

MetroPCS Communications, Inc., a wireless telecommunications carrier, together with its subsidiaries, provides wireless broadband mobile services in the United States. Its services include voice services, such as local, domestic long distance, and international call services; and data services, including domestic and international text messaging, multimedia messaging, mobile Internet access, mobile instant messaging, location based services, social networking services, push e-mail, and multimedia streaming and downloads, as well as services provided through the binary runtime environment for wireless (BREW), Blackberry, Windows, and the Android platforms, including ringtones, ring back tones, games, and content applications. The company also offers custom calling features consisting of caller ID, call waiting, three-way calling, and voicemail services. In addition, it sells mobile handsets. The company offers its products and services under the MetroPCS brand name, directl y through the company-operated retail stores and indirectly through independent retail outlets, as well as through Internet. As of December 31, 2010, it served approximately 8.1 million subscribers, as well as operated 159 retail stores primarily in the metropolitan areas of Atlanta, Boston, Dallas/Fort Worth, Detroit, Las Vegas, Los Angeles, Miami, New York, Orlando/Jacksonville, Philadelphia, Sacramento, San Francisco, and Tampa/Sarasota. The company is headquartered in Richardson, Texas.

Advisors' Opinion:
  • [By Larry Gellar]

    Although this company is known in some circles for its poor phone service, PCS stock has seen some serious gains in the past 12 months. In fact, look for this trend to continue when earnings are announced on August 2. Much smaller than AT&T (T) and Verizon (VZ), MetroPCS best compares with Sprint Nextel (S). With an operating margin of 16.79 compared with Sprint Nextel’s 0.15%, it’s clear that MetroPCS is better suited for future growth. Gross margin and PEG are also favorable for MetroPCS, currently 42.69% and 1.36 respectively. For another great Seeking Alpha article on cell phone companies, consider reading this. Perhaps the most important point raised is that Sprint Nextel’s purchases of Virgin Mobile and Boost Mobile pose a serious threat to MetroPCS. These companies will fight MetroPCS for the low-end cell phone market and may come out on top due to incr easing problems with MetroPCS’s call quality. Essentially, MetroPCS’s problem is that although it offers unlimited talk, text, and web, these features don’t actually work very well. The future success of this company is highly dependent on an improvement in quality as existing customers continue to get fed up. Luckily for MetroPCS, Sprint seems to be having a setback with its 4G service.

10 Best Cheap Stocks To Invest In Right Now: Sprott Resource Lending Corp.(SILU)

Sprott Resource Lending Corp., a natural resource lender, provides bridge and mezzanine financing to precious and base metal mining, exploration, and development companies, as well as energy companies worldwide. The company was formerly known as Quest Capital Corp. and changed its name to Sprott Resource Lending Corp. in September 2010. Sprott Resource Lending Corp. was incorporated in 1980 and is based in Toronto, Canada.

Advisors' Opinion:
  • [By Louis]

    Formerly known as Quest Capital Corp., Sprott Resource Lending Corp. (SILU) has returned 40% in the past year, and is currently trading at $1.78. SILU has had an up-and-down year, but this penny stock has the potential to bring you fast gains. During a two-day span in early April, SILU jumped 13%.

10 Best Cheap Stocks To Invest In Right Now: Whole Foods Market Inc.(WFM)

Whole Foods Market, Inc. engages in the ownership and operation of natural and organic food supermarkets. The company offers produce, seafood, grocery, meat and poultry, bakery, prepared foods and catering, coffee and tea, nutritional supplements, and vitamins. It also provides specialty products, such as beer, wine, and cheese; body care and educational products, such as books; and floral, pet, and household products. As of February 9, 2011, the company operated 302 stores in the United States, Canada, and the United Kingdom. Whole Foods Market, Inc. was founded in 1978 and is headquartered in Austin, Texas.

Advisors' Opinion:
  • [By James K. Glassman]

     Executives at Whole Foods seem to have learned from their past money mistakes. After pushing too fast for growth and acquiring Wild Oats for a pricey $565 million in 2007, the company needed to pull out of its debt with an infusion of cash from private equity firm Leonard Green. 

    Now, the company's keeping its powder dry and its cash cushion stuffed. The high-end grocer is ramping up growth again, but this time, without depleting its cash hoard; it plans to open 25 new stores in this fiscal year that ends in October and 28 to 32 the following year. The company raised its dividend in January by 4 cents, to 14 cents per share. The stock, at $94.46, yields 0.6%. 

    Whole Foods had a cash flow of $755 million last year, with capital expenditures of $167 million.

  • [By Chris Stuart]

    Whole Foods Market(WFM) has turned in a lackluster performance over the past three months, with the shares down 6%, trailing the food-and-staples industry by over 7%. Investors, concerned about the sluggish economy, have avoided the company.

    But the news has been good, as the company issued a bright outlook for the remainder of 2011. At first glance, the shares don't look cheap. Based on the expectations from management for $1.87-$1.90 EPS for 2011, the stock trades at a P/E multiple of roughly 32 times 2011 earnings. But Bank of America-Merrill Lynch analysts argue the stock looks attractive and maintain a $68 price target.

    "We believe WFM's valuation is attractive given its strategy to improve its competitive price position and enhance its cost discipline, which broadens its growth prospects and supports an outlook for improving returns while lowering the company's operating risk profile," Merrill analysts say.

    TheStreet Ratings has a slightly more optimistic $77 price target on shares of Whole Foods Markets. Note that the shares jumped $4 on Tuesday, based on upbeat comments from the company's CEO, who said the natural-foods grocer is gaining market share and he is "feeling pretty bullish" about Whole Foods' future. Despite the gain, I would still consider an investment.

Sunday, July 28, 2013

Top Value Stocks To Invest In Right Now

Looking at the stock market today, you'll find major market benchmarks like the Dow and S&P 500 trading at all-time highs. That has many investors reluctant to get into the market, fearing that they're paying too much for stocks. But just because the market is setting records doesn't mean that value investors have to give up on stocks entirely. In fact, by some measures, today's stock market is quite reasonably priced.

Looking at market multiples
Fundamentally, what determines a stock's value is what the company expects to earn in the future. When earnings prospects are good and growth appears strong, investors are willing to pay higher multiples to current earnings in order to buy shares. When future earnings become more uncertain, then shareholders aren't willing to pay as much today for what could be slower growth tomorrow.

Top Value Stocks To Invest In Right Now: Schlumberger N.V.(SLB)

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

Advisors' Opinion:
  • [By Brian Stoffel]

    This company has been a pick of both Jordan DiPietro and Bryan White. And both analysts have pointed to the company's opportunity for oil exploration abroad -- which is where much of the demand will soon be coming from as well.

    Bryan points out that three-fourths of the company's revenue comes from abroad, with "Brazil, the Middle East, and Africa [as] key regions where activity is expected to be robust and growing."

    Jordan adds, "[Schlumberger] has an important presence in high-growth regions of the world such as Iraq, Mexico, and Russia, and has the competitive advantage to be able to offer full services, from managing entire oil fields to drilling wells."

Top Value Stocks To Invest In Right Now: Dollar Tree Inc.(DLTR)

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

Advisors' Opinion:
  • [By Sam Collins]

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

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

Best Warren Buffett Stocks To Own For 2014: Caterpillar Inc.(CAT)

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

Advisors' Opinion:
  • [By Jim Cramer,TheStreet]

    Caterpillar (CAT) could be a monster in 2011, especially with the integration of Bucyrus International (BUCY), which I think will turn out to be a fantastic acquisition.

    Current earnings-per-share estimates of about $6 are, I think, way too low. I see this stock going to $120 in the next year. Too gutsy? Ask yourself what happens if the United States comes back as a growth nation? Right now almost all of the growth is overseas.

    Still a fantastic mineral play and a terrific call on world growth.

  • [By Dave Friedman]

    The shares closed at $91.37, up $1.56, or 1.74%, on the day. They have traded in a 52-week range of $63.34 to $116.55. Volume today was 10,450,473 shares, against a 3-month average volume of 9,960,260 shares. Its market capitalization is $59.03billion, its trailing P/E is 15.11, its trailing earnings are $6.05 per share, and it pays a dividend of $1.84 per share, for a dividend yield of 2.00%. About the company: Caterpillar Inc. designs, manufactures, and markets construction, mining, agricultural, and forestry machinery. The Company also manufactures engines and other related parts for its equipment, and offers financing and insurance. Caterpillar distributes its products through a worldwide organization of dealers.

  • [By Sam Collins]

    Caterpillar (NYSE:CAT) is the world’s largest producer of construction and mining equipment, diesel and natural gas engines, and industrial gas turbines. The stock has been in a bull market since the market bottomed in March 2009. CAT was one of our Top Stocks to Buy for December because of its position as a major supplier to the third world and China. The company should also be a beneficiary of orders from Japan due to the damage from earthquakes and the tsunami.

    Revenues in 2011 are expected to increase by 36%, according to S&P, and margins are expected to increase, as well. Earnings for 2012 are forecast at $9.10, up from $7.50 this year, and S&P has a target of $142 over the next 12 months.

    Technically CAT has strong support at $95 and currently appears to be oversold, according to Moving Average Convergence/Divergence (MACD). If it is able to hold at the support line, look for a rally to $110 within 30 days. Longer term the stock could trade north of $125.

  • [By Roberto Pedone]

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

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

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

Top Value Stocks To Invest In Right Now: Tupperware Corporation(TUP)

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

Advisors' Opinion:
  • [By Sam Collins]

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

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

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

Another Refiner Sets Its Sights on an MLP Spinoff

Saturday, July 27, 2013

American Electric Earnings: You Need to Watch This Dividend Stock

American Electric Power (NYSE: AEP  ) reported earnings last week, the first of the big utilities (read "dividend stocks") to run its Q2 numbers. While AEP missed slightly on both top- and bottom=line expectations, there's more to this dividend stock's story that you need to know. Let's take a look.

Number crunching
For Q2 2013, American Electric reported revenue of $3.58 billion, just shy of analysts' $3.64 billion estimate. Sales have remained relatively steady over the past couple of years, despite a more erratic bottom line.

AEP Revenue Quarterly YoY Growth Chart

AEP Revenue Quarterly YoY Growth data by YCharts

For this quarter, adjusted EPS clocked in at $0.73, underwhelming analyst expectations by a penny. Neither top-line nor bottom-line metrics were much off the mark, and Mr. Market seems to have thought better of its day-of stock-price punishment. By Friday afternoon, shares were back up beyond its July 25 earnings report price.

AEP Chart

AEP data by YCharts

Beyond the numbers
Perhaps taking advantage of a quantitatively steady earnings report, CEO Nick Akins focused investors' attention more on AEP's future than on its recent past.

First up: coal. While coal has historically offered cheap energy, recent environmental regulations and cheaper natural gas have pushed many coal-centric utilities to back off the solid black gold.

AEP is no exception and is making headway to reduce its coal consumption. In his earnings call, Akins specifically mentioned President Obama's climate change policy and the EPA's regulatory inklings. The utility has already dropped emissions dramatically and plans to reduce its coal capacity by 27% by 2016.

AEP's not alone. FirstEnergy (NYSE: FE  ) announced earlier this month that it plans to retire two more coal-fired power plants that currently account for a whopping 10% (2,080 MW) of its total capacity.

Dominion (NYSE: D  ) took its own take on the coal situation by converting three coal plants to biomass. The first facility went operational a few weeks ago, and the others will come online by 2014 to add 153 MW to the utility's generation fleet.

Unlike FirstEnergy and Dominion, AEP is doing more than putting coal out to pasture. The utility won the 2013 Edison Award for its innovative "advanced ultra-supercritical steam cycle" coal-fired power plant. The $1.7 billion, 600 MW plant sports a record 39% efficiency using low-sulfur coal, and took the utility seven years to weave its way through regulatory and construction challenges.

Other utilities are following suit, pushing hard to turn coal into "clean coal." Integrys (NYSE: TEG  ) currently has a $17 million rate request on the table to add coal dust collectors to an 824 MW facility, a move that would put the utility one step closer to covering environmental costs.

Savings and rates
While AEP is spending to cut its coal addiction, it's also cutting costs across the board. Akins cites $5 million to $10 million in savings at each of three plants recently scrutinized for spending. Around 15 to 20 plants will ultimately undergo the same analysis, and savings initiatives like these are being implemented across the board.

While savings should continue to ramp up, rates are making their own improvements. AEP's regulated operations currently enjoy a 10.2% ROE, which should increase as retroactive rates and expected approvals come into play.

Looking ahead
Despite tough economic times and a continually transitioning company, AEP reaffirmed its 2013 guidance of $3.05 to $3.25 per share and expects long-term earnings growth to clock in between 4% and 6%. To top things off, this dividend stock earned its title with its 413th consecutive quarterly distribution ("Steady as you go," according to Alkins). 

AEP's slow start to innovate and adapt to the current energy environment made me hesitant about last quarter's positive report. But with more steady earnings and an increasingly progressive outlook, I'm ready to make an "outperform" call on my Motley Fool CAPS page.

AEP is preparing for the future, but it's not the only one. Record oil and natural gas production is revolutionizing the United States' energy position. Finding the right plays while historic amounts of capital expenditures are flooding the industry will pad your investment nest egg. For this reason, The Motley Fool is offering a comprehensive look at three energy companies set to soar during this transformation in the energy industry. To find out which three companies are spreading their wings, check out the special free report, "3 Stocks for the American Energy Bonanza." Don't miss out on this timely opportunity; click here to access your report -- it's absolutely free. 

Thursday, July 25, 2013

Why TrueBlue's Shares Jumped Today

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

What: Shares of staffing agency TrueBlue (NYSE: TBI  ) jumped 10% today after the company reported earnings.

So what: Revenue jumped 19%, to $422.3 million, and beat estimates of $420.2 million from Wall Street. Adjusted earnings per share were also up 19%, to $0.31, outpacing estimates by $0.05. 

Now what: Management sees strong demand in staffing, as companies add temporary, instead of full-time workers. That may continue to be the case as companies look to avoid health-care costs associated with Obamacare. The stock is still expensive at 21 times forward earnings estimates, but if this growth continues, and companies avoid hiring full-time employees, the stock will continue its march higher.

Interested in more info on TrueBlue? Add it to your watchlist by clicking here.

Wednesday, July 24, 2013

Top 10 Undervalued Stocks To Invest In Right Now

After the impressive performance of Bank of America's (NYSE: BAC  ) stock last year -- it was the top-performing component of the Dow Jones Industrial Average (DJINDICES: ^DJI  ) -- it'd be tempting to conclude that the nation's second-largest lender didn't have much juice left in the proverbial tank. But according to a number of high-profile analysts, that simply isn't the case.

Roughly halfway through today's trading session, shares of Bank of America are higher by nearly 1.5%. This comes, moreover, on the heels of an impressive performance yesterday, when its shares were up by 1.3%.

There's no question that a growing number of analysts are becoming bullish on Bank of America stock. In the middle of last month, Meredith Whitney -- who famously foretold Citigroup's fall five years ago -- reiterated her view that Bank of America was one of the most undervalued bank stocks in the market. "Very rarely do these big banks have both value catalysts and momentum," Whitney noted. "Bank of America had all of that."

Top 10 Undervalued Stocks To Invest In Right Now: Schlumberger N.V.(SLB)

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

Advisors' Opinion:
  • [By Rebecca Lipman]

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

  • [By Kathy Kristof]

    Headquarters: Houston

    52-Week High: $79.38

    52-Week Low: $56.86 

    Annual Sales: $39.5 bill.

    Projected Earnings Growth: 18% annually over the next five years 


    Energy-services giant Schlumberger is the prototypical multinational. The company derives roughly 85% of its revenues from overseas, including developing markets in Africa, Brazil and Asia. 

    With particular expertise in deep-water drilling, Schlumberger is well-positioned to compete in a world where oil is harder to find, says Argus Research analyst Philip Weiss. Admittedly, oil exploration is a cyclical business, driven largely by crude prices. And weak prices for natural gas have hit the company’s stock, Weiss says. But the price of natural gas has little to do with Schlumberger’s profits, so Weiss just sees this as an opportunity to get the shares at a more reasonable price.

  • [By Lowell]

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

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

  • [By Michael]

    Schlumberger Limited (NYSE: SLB): Cramer also had more than $100,000 invested in SLB. As of Feb. 15, his charitable trust owns 1,300 shares for a total of about $100,724. SLB is also quite popular among hedge funds. At the end of last September, there were 42 hedge funds with SLB positions in their 13F portfolios. Ken Fisher was the most bullish hedge fund manager about SLB -- Fisher Asset Management had nearly $500 million invested in SLB at the end of the third quarter. Jim Simons’ Renaissance Technologies also invested nearly $200 million in this stock.

    Schlumberger has reasonable debt levels, growing net income and revenue, and healthy cash flow from operations. It is relatively expensive compared with its competitors though. SLB has a forward P/E ratio of 13.6. Its expected annual EPS growth rate is 21.82% on the average for the next five years, which means that its P/E ratio for 2014 will be around 9.2. This is quite low compared with the market, but not so versus its peers.

Top 10 Undervalued Stocks To Invest In Right Now: Caterpillar Inc.(CAT)

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

Advisors' Opinion:
  • [By Jim Cramer]

    this stock could be a monster in 2011, especially with the integration of Bucyrus (BUCY), which I think will turn out to be a fantastic acquisition. Estimates, currently showing EPS at about $6, I think are way, way too low. I see this stock going to $120 in the next year. Too gutsy? Ask yourself what happens if the United States comes back as a growth nation. Right now almost all of the growth is overseas. Still a fantastic mineral play and a terrific call on world growth.

  • [By Dave Friedman]

    The shares closed at $91.37, up $1.56, or 1.74%, on the day. They have traded in a 52-week range of $63.34 to $116.55. Volume today was 10,450,473 shares, against a 3-month average volume of 9,960,260 shares. Its market capitalization is $59.03billion, its trailing P/E is 15.11, its trailing earnings are $6.05 per share, and it pays a dividend of $1.84 per share, for a dividend yield of 2.00%. About the company: Caterpillar Inc. designs, manufactures, and markets construction, mining, agricultural, and forestry machinery. The Company also manufactures engines and other related parts for its equipment, and offers financing and insurance. Caterpillar distributes its products through a worldwide organization of dealers.

  • [By Jim Cramer,TheStreet]

    Caterpillar (CAT) could be a monster in 2011, especially with the integration of Bucyrus International (BUCY), which I think will turn out to be a fantastic acquisition.

    Current earnings-per-share estimates of about $6 are, I think, way too low. I see this stock going to $120 in the next year. Too gutsy? Ask yourself what happens if the United States comes back as a growth nation? Right now almost all of the growth is overseas.

    Still a fantastic mineral play and a terrific call on world growth.

5 Best Stocks To Invest In 2014: Tupperware Corporation(TUP)

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

Advisors' Opinion:
  • [By Sam Collins]

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

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

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

Top 10 Undervalued Stocks To Invest In Right Now: Dollar Tree Inc.(DLTR)

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

Advisors' Opinion:
  • [By Sam Collins]

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

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