Wednesday, July 31, 2013

Today’s 3 Worst Stocks

Wall Street rode stocks higher today on the heels of bullish economic data: Consumer confidence reached multiyear highs while housing prices advanced at paces not seen since 2006. The encouraging news was enough to drive the S&P 500 Index (SNPINDEX: ^GSPC  ) 10 points, or 0.6%, higher, to close at 1,660. But despite the confluence of reassuring numbers emerging today, these three S&P stocks still had a rough go of it.

Diversified utilities giant Exelon (NYSE: EXC  ) saw the steepest losses in the index, slumping 7.5% after the stock was downgraded from a buy to a hold rating by Deutsche Bank. The bank's analyst cited low energy prices three and four years out from now as harmful to Exelon's prospects. He also noted that while less coal production may raise energy prices, the emergence of new power supplies would offset those gains.

Of course, Exelon isn't the only utilities company that stands to be hit by the changes ahead in energy markets. FirstEnergy (NYSE: FE  ) ended as the second-largest decliner, falling 6.5% on similar concerns as the stock was downgraded by Credit Suisse from outperform to neutral. The utilities sector was the lone major sector of the market to slip today, so it's not shocking to see two of the day's largest laggards originating from that area.

The last of the day's stragglers, Netflix (NASDAQ: NFLX  ) shares lost 6.4% Tuesday. The stock was driven lower by concerned shareholders worrying about lukewarm critical reviews of Netflix's Arrested Development series. The comedic series -- which enjoys a cult following -- was reprised by the streaming service for a fourth season a full seven years after Fox originally canceled the show. The entire season was released at once on Sunday, and investors hope it will draw hundreds of thousands of new subscribers to the site.

As the nation moves increasingly toward clean energy, Exelon is perfectly positioned to capitalize on having the largest nuclear fleet in North America. This strength, combined with an increased focus on balance sheet health and its recent merger with Constellation, places Exelon and its resized dividend on a shortlist of the top utilities. To determine if Exelon is a good long-term fit for your portfolio, you're invited to check out The Motley Fool's premium research report on the company. Simply click here now for instant access.

Tuesday, July 30, 2013

Japanese Stocks Gain 5% Monday but Are Still Down 14% From May Peak

Investors are being taken for a wild ride in Japan, leading some to ask whether U.S. markets will follow suit. As you can see in the chart below, Japan's benchmark Nikkei (NIKKEIINDICES: ^NI225  ) had gained 80% between November of last year and the middle of May, only to fall by 17% through last Friday and then make up 5% of that lost ground in one fell swoop today.

While Japan's experience is extreme, investors here in the United States should nevertheless take note if for no other reason than that both countries are experiencing asset-price inflation tied to monetary policy. As I discussed here, the Dow Jones Industrial Average (DJINDICES: ^DJI  ) and the S&P 500 (SNPINDEX: ^GSPC  ) have rallied by 17% and 18%, respectively, since the beginning of last September as ultra-low yields in the bond market courtesy of the Federal Reserve's third round of quantitative easing push income-seeking investors into stocks.

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This begs the question: What happens when the central bank removes its support? At Berkshire Hathaway's annual meeting last month, Warren Buffett said the inevitable announcement will be the "shot heard round the world." He went on to say that the Fed's ongoing bond-buying program is a "huge experiment" and is akin to "watching a good movie, and I don't know the ending."

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Monday, July 29, 2013

Why Sohu Shares Sank

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 Chinese web-portal Sohu.com (NASDAQ: SOHU  ) plunged 10% today after its quarterly results and outlook disappointed Wall Street.

So what: The stock has soared in 2013 on bullishness over Sohu's online video segment, but today's second-quarter revenue miss -- $338.90 million versus $340.27 million -- coupled with in-line guidance is forcing analysts to rein in their enthusiasm a bit. And while online ad revenue spiked 49% over the year-ago period, year-over-year operating expenses also jumped 43%, suggesting that Sohu's competitive environment remains particularly intense.

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Now what: Management now sees third-quarter revenue of $358 million-$370 million, in line with the average analyst estimate of $362 million. "In the first half of 2013, we invested intensively in some key initiatives for video, search, games and mobile," said Co-President and CFO Carol Yu. "I am confident the momentum will continue into the remaining months in 2013 and beyond." Of course, with the stock still up about 90% from its 52-week lows and trading at a forward P/E of 20, I'd wait for an even more a pullback before betting on that.

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Sunday, July 28, 2013

Top 10 China Stocks To Invest In 2014

The market is reacting to some global economic concerns this morning, dragging nearly all of the financials down -- including Wells Fargo (NYSE: WFC  ) . But having lost just 1.24% in the first hour of trading, the bank is faring much better than its Big Four compatriots, which have each given up 2.3%+ so far in trading. So even though Wells is down, it's certainly not out and has some big ammunition to send it higher. �

Chinese take-out
This morning's market kerfuffle revolves around continued concerns about the gloabl economy -- and China is fanning the flame. With higher liquidity requirements pressuring the banking system, participants are not lending to each other, which may spark a liquidity crisis. The People's Bank of China, in response to this rising concern, has stated that banks will have to sort the matter out themselves, which is the crux of investor concern with the potential liquidity freeze.

Top 10 China Stocks To Invest In 2014: General Steel Holdings Inc. (GSI)

General Steel Holdings, Inc., through its subsidiaries, engages in the manufacture and sale of steel products in the People's Republic of China. It offers hot-rolled carbon and silicon steel sheets primarily for use in the production of small agricultural vehicles and other specialty markets; spiral-weld pipes for the energy sector primarily to transport oil and steam; and high-speed wire and reinforced bar products for the construction industry. The company sells its products primarily to distributors. General Steel Holdings, Inc. was founded in 1988 and is headquartered in Beijing, the People?s Republic of China.

Top 10 China Stocks To Invest In 2014: KongZhong Corporation(KONG)

KongZhong Corporation, together with its subsidiaries, provides wireless interactive entertainment, media, and community services to mobile phone users in the People's Republic of China. It also involves in the development, distribution, and marketing of consumer wireless value-added services, including wireless application protocol, multimedia messaging services, short messaging services, interactive voice response services, and color ring back tones. In addition, it offers interactive entertainment services, such as mobile games, pictures, karaoke, electronic books, mobile phone personalization features, entertainment news, chat, and message boards; and through Kong.net offer news, community services, games, and other interactive media and entertainment services; and sells advertising space in the form of text-link, banner, and button advertisements. Further, the company develops and publishes mobile games, including downloadable mobile games and online mobile games cons isting of action, role-playing, and leisure games. As of December 31, 2009, it had a library of approximately 300 internally developed mobile games. Additionally, it develops online games; and provides consulting and technology services, as well as media and net book services. The company was formerly known as Communication Over The Air Inc. and changed its name to KongZhong Corporation in March 2004. KongZhong Corporation was founded in 2002 and is headquartered in Beijing, the People?s Republic of China

Advisors' Opinion:
  • [By Wyatt Research Staff]

    As a Chinese ADR, KONG is the leading provider of 2.5G wireless interactive entertainment, media and community services in terms of revenue to customers of company China Mobile. Institutions snatched up shares at an alarming rate with an increase of 26.7% in institutional ownership over the past three months.

    A consensus of analysts expect earnings to increase by 16.9% in 2011 and 19.6% in 2012. Company earnings are estimated to increase by 62.1% this year.

10 Best Stocks To Watch Right Now: Perfect World Co. Ltd.(PWRD)

Perfect World Co., Ltd., through its subsidiaries, engages in the research, development, operation, and licensing of online games primarily in the People?s Republic of China, the United States, and the Rest of Asia. It develops online games based on its game engines and game development platforms. The company?s 3D massively multiplayer online role playing games (MMORPGs) include Perfect World, an adventure and fantasy game with traditional Chinese settings; Legend of Martial Arts, an adventure story of Chinese swordsmen set in an ancient kingdom; and Perfect World II, which is set in a similar content and graphic background as Perfect World. It also offers Zhu Xian that is based on martial arts focused adventure set in a fantasy world; Chi Bi, a war story developed based on ancient Chinese history known as the Three Kingdoms; Hot Dance Party, a 3D online casual game; Pocketpet Journey West, a 3D MMORPG based on the classical novel of Chinese literature, Journey to the West ; Battle of the Immortals, a mysterious adventure, which enables game players to travel between eastern and western cultures, and adventures in historic sites and turf wars; and Fantasy Zhu Xian, a 2D turn-based MMORPG based on the Internet fantasy novel Zhu Xian. It also involves in the production and distribution of films, as well as television advertising activities. The company was founded in 2004 and is based in Beijing, the People?s Republic of China.

Top 10 China Stocks To Invest In 2014: Bona Film Group Limited(BONA)

Bona Film Group Limited distributes films in the People?s Republic of China. It distributes films to movie theaters, as well as to non-theatrical distribution channels, including DVD and Blu-ray and other home video products; Internet and digital distribution; in-flight entertainment; and cable, satellite, and broadcast televisions. The company also invests in the production of Chinese and Hong Kong films in order to obtain the distribution rights for movie theaters and non-theatrical channels. In addition, Bona Film Group operates six movie theaters in five cities of the People?s Republic of China; operates a talent agency business that represents artists; and involves in film advertising and television production businesses. The company was founded in 2003 and is headquartered in Beijing, the People?s Republic of China.

Top 10 China Stocks To Invest In 2014: Trina Solar Limited(TSL)

Trina Solar Limited, through its subsidiaries, designs, develops, manufactures, and sells photovoltaic (PV) modules worldwide. The company offers monocrystalline PV modules ranging from 165 watts to 185 watts in power output; and multicrystalline PV modules ranging from 215 watts to 240 watts in power output that provide electric power for residential, commercial, industrial, and other applications. It also involves in the design and production of various PV modules, such as colored modules for architectural applications and larger sized modules for utility grid applications based on customers? and end-users? specifications. Trina Solar Limited sells and markets its products primarily to distributors, wholesalers, power plant developers and operators, and PV system integrators. The company was founded in 1997 and is based in Changzhou, the People?s Republic of China.

Advisors' Opinion:
  • [By Hawkinvest]

    Trina Solar Ltd. (TSL) is one of the most respected solar companies in China. It has a strong balance sheet, especially when compared to many other Chinese solar companies. Trina Solar recently reported financial results for fourth quarter and full year of 2011. The loss for 2011 was $37.8 million, or 54 cents per share. Trina Solar is working to reduce non-silicon manufacturing cost to less than 60 cents per watt by the end of 2012, which will give the company a competitive advantage. This company is one of China's "blue chip" solar stocks, and it is likely to lead an industry rebound when it comes. With the recent financial report out of the way, and the stock below $8 per share, it appears be the right time to start buying in stages.

  • [By Fitz Gerald]

    Trina Solar, Ltd.(NYSE: TSL) closing price in the stock market Tuesday, Jan. 3, was $7.17. TSL is trading 0.68% above its 50 day moving average and -39.26% below its 200 day moving average. TSL is -76.93% below its 52-week high of $31.08 and 35.80% above its 52-week low of $5.28. TSL‘s PE ratio is 2.92 and its market cap is $505.06M.

    Trina Solar, Ltd. designs, develops, manufactures, and sells photovoltaic (PV) modules worldwide through its subsidiaries. TSL sells and markets its products primarily to distributors, wholesalers, power plant developers and operators, and PV system integrators.

Top 10 China Stocks To Invest In 2014: Top Image Systems Ltd.(TISA)

Top Image Systems Ltd. provides enterprise solutions for managing and validating content entering organizations from various sources. It develops and markets automated data capture solutions for managing and validating content gathered from customers, trading partners, and employees. The company?s solutions deliver digital content to the applications that drive an enterprise by using technologies, such as wireless communications, servers, form processing, and information recognition systems. It offers eFLOW Unified Content Platform that provides the common architectural infrastructure for its solutions. The company also provides Smart, an automated classification solution, which is the eFLOW plug-in for unstructured content providing single point of entry for information entering the organization; and Freedom, the eFLOW plug-in for semi-structured content that enables customers to identify and capture critical data from semi-structured documents, such as invoices, purchase orders, shipping notes, and checks. In addition, it offers Integra, the eFLOW plug-in for structured content, which provides a solution for data capture, validation, and delivery from structured predefined forms; eFLOW Ability, an integrated module interfacing with SAP systems for automated parking, approval, and posting of invoices and other document within SAP systems; and eFLOW Invoice Reader, an invoice capture and approval solution, which could be deployed and integrated in enterprise accounting environment, such as SAP, Oracle, and other financial systems. Top Image Systems Ltd. sells its products through a network of value-added distributors, systems integrators, original equipment manufacturers, and partners in approximately 40 countries worldwide. It has strategic partnership with SQN Banking Systems (SQN) to incorporate SQN's fraud detection solutions with its eFLOW Banking Platform in the Asia Pacific market. The company was founded in 1991 and is headquartered i n Ramat Gan, Israel.

Advisors' Opinion:
  • [By cnAnalyst]

    Top Image Systems Ltd. (NASDAQ:TISA) is the 4th best-performing stock last month in this segment of the market. It was up 84.92% for the past month. Its price percentage change was 102.63% year-to-date.

Top 10 China Stocks To Invest In 2014: China Valves Technology Inc.(CVVT)

China Valves Technology, Inc., through its subsidiaries, engages in developing, manufacturing, and selling low, medium, and high-pressure metal valves for customers in the electricity, petroleum, chemical, water, gas, nuclear power station, and metal industries in China. The company?s product categories include high pressure and high temperature valves for power station units; valves for long distance petroleum and gas pipelines, and sewage; special valves for chemical lines; and large valves for water supply pipe networks. Its products comprise gate, globe, check, throttle, butterfly, ball, safety, water pressure test, vacuum, and extraction check valves. The company markets its products through regional agents and distributors. China Valves Technology, Inc. has a strategic cooperation frame agreement with Dongfang Electric Corporation for the development of high-end valves. The company was founded in 2007 and is headquartered in Kaifeng, the People's Republic of China. Advisors' Opinion:

  • [By Robert Hsu]

    China Valves Technology (NASDAQ: CVVT) recently announced that its subsidiary, Able Delight Valve,  has been certified as a qualified supplier of China Nuclear Power Engineering. This is CVVT’s second subsidiary to receive this certification.

    This is a nice milestone for the company as CVVT continues to gain market share in the nuclear power industry. The demand for nuclear power applications is growing but the inspection of prospective suppliers is strict — and the company believes that the addition of Able Delight as a qualified supplier will become another catalyst for rapid growth in the near future. CVVT is a buy under $10.50.

Top 10 China Stocks To Invest In 2014: eLong Inc.(LONG)

eLong, Inc. operates as an online travel service provider in the People?s Republic of China. The company provides its customers with travel information and the ability to book rooms, air tickets, vacation packages, and other travel related services utilizing call center and Web-based distribution technologies. It facilitates the customers to book rooms in approximately 10,000 hotels in 450 cities across China, and fulfills air ticket reservations in approximately 80 cities across China. In addition, the company offers the ability to book rooms at approximately 100,000 hotels outside of China; and provides the customers informative content relevant to hotel and air travel decisions, including tourist and event site destination information, hotel facility information, and photos. eLong markets its services through online marketing, traditional media advertising, co-marketing with established brands of other companies, and direct marketing. The company was founded in 1999 and is headquartered in Beijing, the People?s Republic of China. eLong, Inc. operates as a subsidiary of Expedia Asia Pacific Limited.

Advisors' Opinion:
  • [By cnAnalyst]

    eLong, Inc. (ADR) (NASDAQ:LONG) is the 10th best-performing stock last month in this segment of the market. It was up 62.09% for the past month. Its price percentage change was 17.47% year-to-date.

Top 10 China Stocks To Invest In 2014: DAQQ New Energy Corp.(DQ)

Daqo New Energy Corp., together with its subsidiaries, manufactures and sells polysilicon in China. The company sells its polysilicon to photovoltaic product manufacturers for use in the processing of ingots, wafers, cells and modules for solar power solutions. It also produces and sells mono-crystalline and multi-crystalline modules to photovoltaic system integrators and distributors in China and internationally under its Daqo brand. The company was formerly known as Mega Stand International Limited and changed its name to Daqo New Energy Corp. in August 2009. Daqo New Energy Corp. was founded in 2006 and is headquartered Wanzhou, the People?s Republic of China.

Advisors' Opinion:
  • [By Kevin1977]

    DAQQ New Energy Corp.(NYSE: DQ) closing price in the stock market Tuesday, Jan. 3, was $1.84. DQ is trading -4.75% below its 50 day moving average and -59.53% below its 200 day moving average. DQ is -87.71% below its 52-week high of $14.97 and 30.50% above its 52-week low of $1.41. DQ‘s PE ratio is 0.60 and its market cap is $64.66M .

    DAQQ New Energy Corp. manufactures and sells polysilicon in China together with its subsidiaries. DQ sells its polysilicon to photovoltaic product manufacturers for use in the processing of ingots, wafers, cells and modules for solar power solutions.

Top 10 China Stocks To Invest In 2014: Xueda Education Group(XUE)

Xueda Education Group provides tutoring services for primary and secondary school students in the People?s Republic of China with a focus on offering personalized tutoring services. Its services include consultation and assessment, formulation of a customized study plan, personalized tutoring, and delivery of supporting services. The company also provides course offerings that cover various academic subjects taught in primary and secondary schools, such as mathematics, English, physics, Chinese, and chemistry; and self-designed courses beyond the standard curriculum in certain subjects, as well as in subjects not taught at public primary and secondary schools. As of December 31, 2010, its tutoring service network comprised 207 learning centers and approximately 9,650 full-time service professionals, serving customers located in 53 economically developed cities across 27 of China?s 31 provinces and municipalities. The company was founded in 2001 and is headquartered in Beij ing, the People?s Republic of China.

Advisors' Opinion:
  • [By Paul]

    Xueda Education Group is engaged in providing tutoring services for primary and secondary school students in China with a focus on offering personalized tutoring services. Its EPS forecast for the current year is 0.36 and next year is 0.56. According to consensus estimates, its topline is expected to grow 49.68% current year and 38.69% next year. It is trading at a forward P/E of 18.27. Out of three analysts covering the company, two are positive and have buy recommendations and one has a hold rating.

Saturday, July 27, 2013

How Ford Will Roll Out the Next F-150

Sales of Ford's current F-150 remain strong -- and Ford is hoping they'll continue to be strong even as it launches the next-generation truck in 2014. Photo credit: Ford Motor.

Ford (NYSE: F  ) has struggled with new-product launches recently. Last year's rollouts of the Escape and the Fusion were marred by recalls and quality hitches. Both vehicles recovered and have sold well since, but those are mistakes that Ford can't afford to make when it rolls out its all-new F-150 next year.

General Motors (NYSE: GM  ) has had success -- so far -- with the rollout of its all-new Chevy Silverado, but a new report says that Ford is planning a very different strategy with its new truck. In this video, Fool contributor John Rosevear explains what Ford may be planning to do to get the new F-Series launched -- and why it's a high-risk strategy for the Blue Oval.

Ford's latest models aren't just doing well in the U.S.: Its Focus has become one of China's best-sellers, and more Fords are climbing China's sales charts. A recent Motley Fool report, "2 Automakers to Buy for a Surging Chinese Market," says that Ford is one of two global auto giants that is exceptionally well-positioned to benefit from China's ongoing auto boom. You can read this report right now for free -- just click here for instant access.

Thursday, July 25, 2013

Today's 3 Best Stocks

It was yet another day of head-scratching for investors, who had to digest generally positive, but still quite mixed, earnings news, and the chapter 9 bankruptcy filing by Detroit.

It's not every day that you witness one of America's largest cities filing for bankruptcy protection. With potentially more than $20 billion in debt and liabilities, Detroit represents an iconic symbol of the automobile industry. With that in mind, how the government handles Detroit's bankruptcy filing will be closely monitored, as it could sway consumer sentiment higher or lower with regard to their feelings about the economy.

Very (and I do mean very) early on in this earnings season, most companies are topping Wall Street's expectations from an EPS perspective, which has helped push many indexes higher. That wasn't the case for Microsoft (NASDAQ: MSFT  ) , though, which really held back any chance the broad-based S&P 500 (SNPINDEX: ^GSPC  ) had of galloping higher today. Microsoft shares tumbled to their worst one-day sell-off in 13 years on the heels of a $900 million writedown of unsold Surface tablets. This could signal evidence that Microsoft's push away from software and into hardware may be a bust. Being one of the largest companies in the world, it acted as a serious drag on the S&P 500.

But, despite Detroit's bankruptcy filing and Microsoft's flop, the S&P 500 still managed to do the unthinkable, and trudge higher by 2.72 points (0.16%) on the day, to close at 1,692.09, another all-time record high.

Leading the pack today is fresh-Mex casual restaurant Chipotle Mexican Grill (NYSE: CMG  ) , which advanced 8.6% after reporting its second-quarter results. For the quarter, Chipotle saw sales spike 18% to $816.8 million, predominantly due to the addition of 44 new stores. Absent these stores, same-store growth came in at a more modest 5.5%. Profit per share increased to $2.82 from $2.56 in the previous year, exactly matching the Street's expectations. Expansion is certainly being met with open arms, but higher expenses, low single-digit organic growth through the first six months of the year, and a 160-basis point operating margin decrease in the latest quarter, are more than enough reasons to avoid Chipotle here.

Home appliance maker Whirlpool (NYSE: WHR  ) also sent short-sellers through the spin cycle after it gained 8% following its strong second-quarter results, and boosting its full-year profit outlook. For the quarter, revenue jumped 5.3%, to $4.75 billion, as profit soared 53%, to $2.37 per share. Comparatively, the Street expected just $2.32 in EPS on $4.67 billion in sales. What really has investors excited is its EPS boost for the remainder of the year to a range of $9.50-$10 in EPS from its prior EPS forecast of $9.25-$9.75. A rebounding housing market has certainly helped Whirlpool, but I remain a bit concerned about the affect rising U.S. lending rates could have on its domestic business, and would suggest investors remain cautious.

Finally -- and to keep with today's theme of earnings-driven moves -- oil services contractor Schlumberger (NYSE: SLB  ) added 5.4% after topping the Street in the second quarter. Overall, revenue rose 8%, to $11.18 billion, with net income soaring 50%, to $2.1 billion, or $1.57 per share. Excluding one-time gains, Schlumberger topped EPS estimates by $0.05 and slid by revenue projections by $60 million. Schlumberger can thank robust drilling activity overseas in China and Australia, as well as domestically in the Gulf of Mexico, for its market-beating results. To add the icing on the cake for shareholders, Schlumberger also announced a new $10-billion share repurchase program. Investors would be smart to keep their eyes on Schlumberger moving forward.

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Wednesday, July 24, 2013

Former Bristol-Myers Exec Settles Insider-Trading Charges for $324,777

A former executive within the treasury department of Bristol-Myers Squibb (NYSE: BMY  ) , who pleaded guilty in federal court last month to securities fraud, has settled related insider-trading charges brought by the Securities and Exchange Commission, the SEC announced this week.

According to the SEC, while employed at Bristol, Robert D. Ramnarine used inside knowledge of planned acquisitions of three biotech companies -- Pharmasset, ZymoGenetics, and Amylin Pharmaceuticals -- to trade options in the three companies ahead of announcements of Bristol's interest. Furthermore, the SEC says Ramnarine ran Internet searches for such phrases as:

"can stock option be traced to purchaser" "how to detect can stock option be traced to purchase inside trading" "illegal insider trading options trace" 

On Tuesday, the SEC announced that a federal judge has approved a settlement with Ramnarine, whereby he agreed to:

disgorge $311,361 in ill-gotten profits pay prejudgment interest of $13,061 transfer funds in a brokerage account he controlled to the Commission be permanently enjoined "from acting as an officer or director of any issuer that has any class of securities registered pursuant to Section 12 of the Exchange Act."

The SEC says it may seek further civil penalties against Ramnarine at a future date. He is scheduled for sentencing on the criminal charges on Sept. 26.

link

Tuesday, July 23, 2013

Will Nat-Gas Hikes Hurt Dow Chemical Earnings?

Dow Chemical (NYSE: DOW  ) will release its quarterly report on Thursday, and investors are hoping that the chemical giant will be able to break out of a long malaise in its stock price by posting good news. Yet while analysts see good things coming in the Dow earnings report, the longer-term question is how much natural gas will play a role in determining its growth potential in future years.

Like its biggest peers, Dow has diversified beyond pure chemical production to include agricultural products, although it still makes a relatively minor part of its business. As a result, Dow remains much more exposed to conditions in the energy markets, which define a substantial portion of its costs. Let's take an early look at what's been happening with Dow Chemical over the past quarter and what we're likely to see in its quarterly report.

Stats on Dow Chemical

Analyst EPS Estimate

$0.63

Change From Year-Ago EPS

14.5%

Revenue Estimate

$14.48 billion

Change From Year-Ago Revenue

(0.2%)

Earnings Beats in Past Four Quarters

2

Source: Yahoo! Finance.

Can Dow Chemical earnings pick up the pace this quarter?
In recent months, analysts have marked down their views on short-term Dow earnings, cutting their June-quarter estimates by about 10%. Longer-term views are more mixed, with slight boosts in full-year 2013 estimates offset by declines in 2014 calls, but the stock has ignored the potential problems and risen 15% since mid-April.

Dow has done a good job of realigning its business to take advantage of changing conditions in the chemical industry. Over the past four years, the company has sold off non-core operations that contributed a total of $8 billion toward revenue before being sold. Instead, the company has focused largely on agricultural sciences, which saw a 14% increase in sales for the division in the first quarter, leading Dow's six divisions in growth and helping contribute to 13% earnings growth.

That's consistent with what we've seen at Dow's rivals. Monsanto (NYSE: MON  ) has evolved to become primarily dependent on agriculture for its financial success. Even DuPont (NYSE: DD  ) , which still gets half its revenue from non-agricultural sources, is feeling the pressure to move more toward the high-margin business, having announced earlier today plans to seek strategic alternatives for its performance chemicals division.

But one interesting fight Dow has taken on is in trying to keep the recent glut of U.S.-produced natural gas within the nation's borders. Gas producers have sought ways to boost exports through liquefied natural gas terminals, but given the energy-intensive nature of chemical production and Dow's own need for nat-gas-based inputs, chemical companies would rather see prices remain low to give them a competitive advantage over foreign competitors. In particular, low ethane costs have boosted margins for Dow, DuPont, and other chemical-makers. Yet already, nat-gas prices have recovered somewhat from last year's lows, and that could increase input costs for Dow.

Another challenge for Dow and its peers comes from the labor force. Despite high unemployment, chemical companies are having trouble finding skilled workers able to perform the tasks it needs in a growing industry. If those pressures end up requiring higher wage costs, then Dow might struggle to keep its overall expenses in line.

In the Dow earnings report, watch to see how the company responds to DuPont's report from today. With most other companies focusing on agriculture, it'll be interesting to see if Dow follows suit or seeks to differentiate itself by remaining loyal to its chemical roots.

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Monday, July 22, 2013

Top 10 Low Price Stocks To Invest In 2014

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 McEwen Mining (NYSE: MUX  ) jumped as much as 12% today after the company released production figures.

So what: In the second quarter, the company produced 35,955 gold equivalent ounces, 30% higher than a year earlier. Both of the company's mines are producing at solid levels, and management thinks it can reach 130,000 gold equivalent ounces this year.�

Now what: The strong performance was good, and it didn't hurt that gold itself was up 2.9% today. The low price of gold has hurt miners, so they can use any good news they can get on the pricing front. McEwen hasn't yet posted a profit and, with gold under pressure, I would take a cautious approach to this stock, because even higher production may not make up for falling prices.

Top 10 Low Price Stocks To Invest In 2014: CalAmp Corp (CAMP.O)

CalAmp Corp. (CalAmp) develops and markets wireless technology solutions that deliver data, voice and video for critical networked communications and other applications. The Company has two business segments: Wireless DataCom, which serves commercial, industrial and government customers, and Satellite, which focuses on the North American Direct Broadcast Satellite (DBS) market. In May 2012, CalAmp Corp announced that it has entered into a five-year supply agreement to provide fleet tracking products to Navman Wireless. As part of the transaction, CalAmp has acquired certain products and technologies from Navman Wireless and established a research and development center in Auckland, New Zealand. The assets acquired by CalAmp include technology for Mobile Display Terminals (MDT) and an MDT product line marketed to telematics original equipment manufacturers (OEMs) globally. In March 2013, it completed the acquisition of the operations of Wireless Matrix Corporation.

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Wireless DataCom

The Wireless DataCom segment provides wireless technology, products and services for industrial Machine-to-Machine (M2M) and Mobile Resource Management (MRM) market segments for a range of applications, including optimizing and automating electricity distribution and ancillary utility functions; facilitating communication and coordination among emergency first-responders; increasing productivity and optimizing activities of mobile workforces; improving management control over valuable remote and mobile assets, and enabling emerging applications in a wirelessly connected world.

The Company's Wireless DataCom segment is comprised of a Wireless Networks business and an MRM business. CalAmp's Wireless Networks business provides products, systems and services to industrial, utility, energy and transportation enterprises and state and local governmental entities for deployment where the ability to communicate with mobile personne l or to command and control remote assets is crucial. Util! it! ies, oil and gas, mining, railroad and security companies rely on CalAmp products for wireless data communications to and from outlying locations, permitting real-time monitoring, activation and control of remote equipment. Applications include remotely measuring freshwater and wastewater flows, pipeline flow monitoring for oil and gas transport, automated utility meter reading, remote Internet access and perimeter monitoring. CalAmp is among the leaders in the application of wireless communications technology to Smart Grid power distribution automation for electric utilities.

MRM wireless solutions include global positioning system (GPS) location, cellular data modems and programmable events-based notification firmware as key components, allowing customers to know where and how their assets are performing, no matter where those mobile assets are located. Commercial organizations, vehicle finance providers, city and county governments, and a range of other enter prises rely on CalAmp products and systems to optimize delivery of services and protect valuable assets. Applications include fleet management, asset tracking, student and school bus tracking and route optimization, stolen vehicle recovery, remote asset security, remote vehicle start, and machine-to-machine communications. In addition to functioning as an OEM supplier of location and communications hardware for MRM applications, CalAmp is a total solutions provider of turn-key systems incorporating location and communications hardware, cellular airtime and Web-based remote asset management tools and interfaces.

The Company competes with Motorola Solutions, GE-MDS, Freewave, Sierra Wireless, GenX, Spireon, Novatel Wireless-Enfora and Xirgo.

Satellite

The Satellite segment develops, manufactures and sells DBS outdoor customer premise equipment and whole home video networking devices for digital and high definition satellite television (TV ) reception. CalAmp's satellite products are sold prim! arily ! t! o EchoSt! ar, an affiliate of Dish Network.

The Company's DBS reception products are installed at subscriber premises to receive television programming signals transmitted from orbiting satellites. These DBS reception products consist principally of outdoor electronics that receive, process, amplify and switch satellite television signals for distribution over coaxial cable to multiple set-top boxes inside the home that can acquire, recognize and process the signal to create a picture.

The Company competes with Sharp, Wistron NeWeb Corporation, Microelectronics Technology, Pro Brand and Global Invacom.

Top 10 Low Price Stocks To Invest In 2014: Tennant Creek Gold Ltd(TNG.AX)

TNG Limited engages in the exploration, evaluation, and development of mineral resource projects in the Northern Territory and Western Australia. The company explores for gold, zinc, lead, silver, vanadium, titanium, iron, nickel, cobalt, and copper. It principally holds 100% interest in the Mount Peake project located in the Arunta geological province; and the Manbarrum project located to the north-east of the township of Kununurra in the northern territory. The company is based in Subiaco, Australia.

Top Stocks For 2014: Organovo Holdings Inc (ONVO)

Organovo Holdings, Inc. (Organovo), formerly Real Estate Restoration & Rental, Inc., incorporated in 2007, is a development-stage company. The Company has developed and is commercializing a platform technology for the generation of three-dimensional (3D) human tissues that can be employed in drug discovery and development, biological research, and as therapeutic implants for the treatment of damaged or degenerating tissues and organs. On December 28, 2011, Real Estate Restoration and Rental, Inc.�� (RERR) entered into an Agreement and Plan of Merger, pursuant to which RERR merged with its, wholly owned subsidiary, Organovo (Merger Sub). On February 8, 2012, the Company merged with and into Organovo Acquisition Corp. (Acquisition Corp.), a wholly owned subsidiary of Organovo, with the Company surviving the merger as a wholly owned subsidiary of Organovo Holdings (the Merger). As a result of the Merger, Organovo acquired the business of Organovo, Inc.

The Company has collaborative research agreements with Pfizer, Inc. (Pfizer) and United Therapeutic Corporation (Unither). As of March 31, 2012, it has five federal grants, including Small Business Innovation Research grants and developed the NovoGen MMX Bioprinter (its first-generation 3D bioprinter). The Company is engaged in the development of specific 3D human tissues to aid Pfizer in discovery of therapies in two areas of interest. In addition, in October 2011, it entered into a research agreement with Unither to establish and conduct a research program to discover treatments for pulmonary hypertension using its NovoGen MMX Bioprinter technology. Additionally, under the research agreement with Unither, the Company granted Unither an option to acquire from the Company a worldwide, royalty-bearing license in certain intellectual property created under the research agreement solely for use in the treatment or prevention of pulmonary hypertension and all other lung diseases.

The Company�� NovoGen MMX Bioprinter is an automate! d device that enables the fabrication of three-dimensional (3D) living tissues comprised of mammalian cells. A custom graphic user interface (GUI) facilitates the 3D design and execution of scripts that direct precision movement of the dispensing heads to deposit cellular building blocks (bio-ink) or supporting hydrogel. The Company is using a third party manufacturer, Invetech Pty., of Melbourne, Australia, to manufacture its NovoGen MMX Bioprinter. Its bioprinting technology and surrounding intellectual property and commercial rights serve as a platform for product generation across multiple markets that employ cell- and tissue-based products and services.

The Company competes with Organogenesis, Advanced BioHealing, Tengion, Genzyme, HumaCyte and Cytograft Tissue Engineering.

Top 10 Low Price Stocks To Invest In 2014: TASER International Inc.(TASR)

TASER International, Inc. develops, manufactures, and sells electronic control devices (ECD) for use in the law enforcement, military, corrections, private security, and personal defense markets. ECDs transmit electrical pulses along the wires and into the body affecting the sensory and motor functions of the peripheral nervous system. Its products for the law enforcement, military, corrections, and professional security market include the TASER X26 product line, which consists of TASER X26, various cartridges, a digital power magazine, data download software and equipment, extended warranties, and a range of holstering options and accessories; TASER X3, a multi-shot ECD that would engage three separate targets; and ADVANCED TASER M26 product line comprising the ADVANCED TASER M26, various cartridges, rechargeable batteries, a battery charging system, data download software and equipment, extended warranties, and various holstering options and accessories. The company also provides TASER XREP, a self-contained, wireless ECD that deploys from a 12-gauge pump-action shotgun; and TASER Shockwave security system for safety and stand-off capability during hostile situations. In addition, it manufactures TASER C2, TASER X26C, and ADVANCED TASER M26C devices for the personal defense market, as well as provides various cartridges and other accessories. The company sells its products worldwide through its direct sales force, distribution partners, online store, and third-party resellers. TASER International, Inc. was founded in 1993 and is headquartered in Scottsdale, Arizona.

Top 10 Low Price Stocks To Invest In 2014: Sycamore Networks Inc.(SCMR)

Sycamore Networks, Inc., together with its subsidiaries, engages in the development and marketing of intelligent bandwidth management solutions worldwide. It provides SN 16000 and SN 9000 optical switches that enable bandwidth management in regional and core optical networks; SILVX network management system, which offers comprehensive performance management services; DNX cross-connect platforms for traffic aggregation and grooming handle narrowband to broadband switching and transport; and ENvision Plus network management software for path protection and disaster recovery. The company also provides IAB-3000 integrated access bank and SPS-1000 signaling process systems, which support voice and data integration at end-user sites and in telemetry applications; and DNX-1u access gateways for improving site visibility and control. In addition, it develops and markets IQstream mobile broadband optimization solutions to help operators in reducing congestion in mobile access netwo rks. Further, the company offers post-sales customer support services, such as network planning and deployment, logistics, product training, software updates, online technical assistance, and maintenance contracts. It sells its products to wireline and wireless network service providers, utility companies, large enterprises, multiple systems operators, and government entities through its direct sales force. Sycamore Networks, Inc. was founded in 1998 and is headquartered in Chelmsford, Massachusetts.

Top 10 Low Price Stocks To Invest In 2014: MTR Gaming Group Inc.(MNTG)

MTR Gaming Group, Inc., through its subsidiaries, engages in racing, gaming, and entertainment businesses in the United States. It owns and operates Mountaineer Casino, Racetrack & Resort, which is a diverse gaming, entertainment, and convention complex in Chester, West Virginia that consists of approximately 2,132 slot machines, 14 poker tables, and 45 casino table games; 357 hotel rooms, including 256-room Grande Hotel at Mountaineer; a convention space; a live thoroughbred horse racing facility; the Woodview Golf Course; a theater and events center; a fitness center; and an on-site pari-mutuel wagering facility. The company also operates Presque Isle Downs & Casino property, which comprises 2,070 slot machines, 44 casino table games, and 9 poker tables; and provides live thoroughbred horse racing and on-site pari-mutuel wagering services in Erie, Pennsylvania. In addition, it operates Scioto Downs Casino & Racetrack, a live harness racing track in Columbus, Ohio; and Ra celinebet.com, a national account wagering service that offers online and telephone wagering on horse races. The company was formerly known as Secamur Corporation and changed its name to MTR Gaming Group, Inc. in 1996. MTR Gaming Group, Inc. was founded in 1988 and is based in Chester, West Virginia.

Top 10 Low Price Stocks To Invest In 2014: TESSCO Technologies Incorporated(TESS)

TESSCO Technologies Incorporated provides products and value chain solutions to support the construction, operation, and use of mobility and data wireless systems primarily in the United States. The company?s Network Infrastructure segment offers base station antennas, cable and transmission lines, fixed and mobile broadband equipment, wireless local area network products, wireless networking, filtering systems, small towers, lightning protection devices, connectors, security and surveillance products, power systems, and miscellaneous hardware products that are used to build, repair, and upgrade wireless telecommunications, computing, and Internet networks. This segment also provides various services, including connector installation, custom jumper assembly, filter product tuning, site kitting, logistics integration, and wireless network training. It?s Mobile Devices and Accessory segment offers cellular phone and data device accessories comprising replacement batteries, cases, speakers, mobile amplifiers, power supplies, headsets, mounts, car antennas, music accessories, and data and memory cards, as well as two-way radios and related accessories. The company?s Installation, Test, and Maintenance segment provides analysis equipments; and various frequency, voltage, and power-measuring devices, as well as assortment of tools, hardware, GPS, safety and replacement, and component parts and supplies. This segment?s products are used to install, tune, maintain, and repair wireless communications equipment. The company serves carrier and public network operators, tower owners, program managers, contractors and integrators, wireless Internet service providers, industrial and enterprise self-maintained users, governments, manufacturers, repair centers, retailers, dealers, and value-added resellers. TESSCO Technologies Incorporated was founded in 1982 and is headquartered in Hunt Valley, Maryland.

Top 10 Low Price Stocks To Invest In 2014: TeleNav Inc.(TNAV)

TeleNav, Inc. provides personalized navigation and location based services (LBS) in the United States and internationally. It offers GPS Navigator, a voice guided, real time, turn by turn mobile navigation service on a white label basis, such as Sprint Navigation and AT&T Navigator, as well as under the TeleNav brand. The company also provides mobile resource management solutions that allow enterprises to monitor and manage mobile workforces and assets by using its LBS platform to track job status and the location of workers, field assets, and equipment. Its enterprise solutions include TeleNav Track service, as well as TeleNav Vehicle Manager, TeleNav Vehicle Tracker, and TeleNav Asset Tracker. In addition, the company offers mobile navigation services through on-board and connected systems. Further, it focuses on developing LBS to new device platforms, such as tablet devices, as well as new LBS for mobile phones, including location based mobile advertising, commerce, and social networking. The company distributes its services to consumers, wireless carriers, enterprises and automobile manufacturers, and original equipment manufacturers through its wireless carrier partners, as well as through its Web site and mobile phone application stores. TeleNav, Inc. is headquartered in Sunnyvale, California.

Top 10 Low Price Stocks To Invest In 2014: Bridgford Foods Corporation(BRID)

Bridgford Foods Corporation, together with its subsidiaries, engages in manufacturing, marketing, and distributing frozen, refrigerated, and snack food products in the United States and Canada. It operates through two segments, Frozen Food Products and Refrigerated and Snack Food Products. The Frozen Food Products segment processes and distributes approximately 150 frozen food products through wholesalers, cooperatives, and distributors to retail outlets, restaurants, and institutions. The Refrigerated and Snack Food Products segment sells approximately 200 items through distribution centers and direct store delivery network to supermarkets, mass merchandise, and convenience retail stores. The company also manufactures and distributes a range of food products, including biscuits, bread dough items, roll dough items, dry sausage products, beef jerky, sliced luncheon meats, and various sandwiches. In addition, it resells various cheeses, salads, party dips, Mexican foods, nu ts, and other delicatessen type food products. The company was founded in 1932 and is based in Anaheim, California.

Top 10 Low Price Stocks To Invest In 2014: TRC Companies Inc.(TRR)

TRC Companies, Inc. provides consulting, engineering, and construction management services in the United States. Its Energy segment offers program design, program management, quality control, engineering, financial tracking, and reporting services to energy companies, utilities, other commercial entities, and state and federal governments. This segment undertakes projects comprising upgrade and new construction for electrical transmission and distribution systems, energy efficiency program design and management, and alternative energy development, as well as provides services to support energy savings projects. The company?s Environmental segment involves in the environmental management of buildings, air quality measurements and modeling potential air pollution impacts, assessment and remediation of contaminated sites and buildings, solid waste management, environmental compliance auditing and strategic due diligence, environmental licensing and permitting various project s, and natural and cultural resource assessment and management. This segment serves industrial, transportation, energy, and natural resource companies, as well as federal, state, and municipal agencies. Its Infrastructure segment offers services relating to the expansion of infrastructure capacity, the rehabilitation of overburdened and deteriorating infrastructure systems, and the management of risks related to security of public and private facilities. This segment?s primary services comprise roadway, bridge, and related surface transportation design; structural design of bridges; construction engineering inspection and construction management for roads and bridges; civil engineering services for municipalities and public works departments; geotechnical engineering services; and security services. The Infrastructure segment serves state and municipal governments, as well as commercial developers. TRC Companies, Inc. was founded in 1969 and is based in Lowell, Massachusett s.

Sunday, July 21, 2013

Is Bank of America's Brand a Toxic Asset?

The following video is from Monday's installment of Where the Money Is, in which Fool analysts Matt Koppenheffer and David Hanson highlight for investors the most important stock news from the financial sector.

In this segment, David and Matt discuss ongoing litigation against Bank of America (NYSE: BAC  ) related to the Home Affordable Modification Program, or HAMP. How much damage can the Bank of America brand endure before public opinion turns against the nationally known name?

Bank of America's stock doubled in 2012. Is there more yet to come? With significant challenges still ahead, it's critical to have a solid understanding of this megabank before adding it to your portfolio. In The Motley Fool's premium research report on B of A, analysts Anand Chokkavelu, CFA, and Matt Koppenheffer, Financials bureau chief, lift the veil on the bank's operations, including detailing three reasons to buy and three reasons to sell. Click here now to claim your copy.

The relevant video segment can be found between 0:00 and 1:59.

For the full video of today's Where the Money Is, click here.

Saturday, July 20, 2013

Last Week's Worst Performing Dow Components

It was quite the week on Wall Street. The market soared higher, then plummeted, and then came back higher as each piece of economic data told a slightly different story about the economy and the health of the American consumer. There were too many data points and press releases this week to go through them all, and at the end, the only one that really truly seemed to matter was the Bureau of Labor Statistics job report that came out on Friday morning.

Estimated job growth was 164,000, but many market participants believed that the number would come in much lower than that. The report indicated that 175,000 jobs were created in May, but because of a high number of new participants, the actual unemployment rate rose from 7.5% to 7.6%. So investors weren't sure what to do, and the markets fluctuated until Friday morning. But Friday's job report gave investors confidence and sent the markets moving high enough to gain back the losses it had suffered earlier in the week. And when the closing bell rang on Friday at 4 p.m. ET, the Dow Jones Industrial Average (DJINDICES: ^DJI  ) was higher by 132 points, or 0.87%, for the week and sat at 15,248. The S&P 500 was also up for the previous five trading days by 0.79%, while the Nasdaq had gained 0.38% during the week.

Before we hit the Dow losers, let's look at the index's big winner of the week: Pfizer (NYSE: PFE  ) , whose shares gained 3.78% over the past five trading sessions. This week's big move came after shares fell 6.23% two weeks ago, when the stock was downgraded and hit with a number of other outside factors. But this week, shares were given a good boost when the company announced it had paid $25 million to CytomX for work on a developmental cancer-fighting antibody therapy. CytomX is a small biotech firm that could receive as much as $600 million if the company meets all the milestones and goals Pfizer has laid out.  

The big losers
Pfizer wasn't the only Dow component to totally reverse course from last week. Bank of America (NYSE: BAC  ) went the opposite direction of Pfizer. Two weeks ago, the stock was the Dow's best performer, gaining 3.17%, and this past week, it was the worst on the index, losing 2.05%. This week we saw the bank in the midst of a legal battle in which Bank of America has already agreed to pay $8.5 billion to settle issues that stem back to the company's purchasing of Countrywide. But not all of the companies that are on the other side of the settlement agree to the amount, which is why B of A is once again in court. Some projections claim that Bank of America could pay as much as $60 billion if the judge doesn't approve the current $8.5 billion amount.  

JPMorgan Chase (NYSE: JPM  ) lost 0.58% this past week, as shares of the megabank fluctuated with the market each day. But one of the big declines came on Wednesday, when the company announced that it would take an $842 million hit on loans it had given to Jefferson County, Ala. The bank had sold the municipality swaps and derivatives before the financial crisis so it could finance a new sewer system. But since then the county has declared bankruptcy, and this move by JPMorgan Chase is a sign of good faith, since Jefferson County owes a total of $1.5 billion to the bank. For more information about this issue, click here.  

Shares of Alcoa (NYSE: AA  ) ended the week lower by 2%, with very little negative news directly related to the company. The aluminum giant has struggled all year, as shares are down 4.03% year to date, which also makes it the second worst performing Dow component of 2013 -- just slightly behind Caterpillar, which is down 5.53% year to date. The stock fell 1.41% on Tuesday alone, as the Dow broke its streak of 20 consecutive Tuesday wins. During the past 20 Tuesdays before this past week, Alcoa was the worst-performing stock, falling lower for 12 of the 20 Tuesdays and gaining only 0.1% while the index itself rose 1,517 points.  

A few other Dow losers this week:

Travelers, down 0.33% Caterpillar, down 1.34% IBM, down 0.8% Chevron, down 0.85% DuPont, down 0.62% UnitedHealth Group, down 0.09% United Technologies, down 0.41%

More Foolish insight
Bank of America's stock doubled in 2012. Is there more yet to come? With significant challenges still ahead, it's critical to have a solid understanding of this megabank before adding it to your portfolio. In The Motley Fool's premium research report on B of A, analysts Anand Chokkavelu, CFA, and Matt Koppenheffer, financials bureau chief, lift the veil on the bank's operations, including detailing three reasons to buy and three reasons to sell. Click here now to claim your copy.

Friday, July 19, 2013

Schlumberger Beats Analyst Estimates on EPS

Schlumberger (NYSE: SLB  ) reported earnings on July 19. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended June 30 (Q2), Schlumberger met expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue expanded. Non-GAAP earnings per share expanded. GAAP earnings per share expanded significantly.

Margins grew across the board.

Revenue details
Schlumberger chalked up revenue of $11.18 billion. The 24 analysts polled by S&P Capital IQ looked for a top line of $11.12 billion on the same basis. GAAP reported sales were 17% higher than the prior-year quarter's $10.45 billion.

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

EPS details
EPS came in at $1.15. The 31 earnings estimates compiled by S&P Capital IQ predicted $1.10 per share. Non-GAAP EPS of $1.15 for Q2 were 9.5% higher than the prior-year quarter's $1.05 per share. (The prior-year quarter included $0.02 per share in earnings from discontinued operations.) GAAP EPS of $1.57 for Q2 were 50% higher than the prior-year quarter's $1.05 per share. (The prior-year quarter included $0.02 per share in earnings from discontinued operations.)

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

Margin details
For the quarter, gross margin was 28.8%, 690 basis points better than the prior-year quarter. Operating margin was 25.6%, 750 basis points better than the prior-year quarter. Net margin was 17.1%, 370 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $11.62 billion. On the bottom line, the average EPS estimate is $1.21.

Next year's average estimate for revenue is $45.67 billion. The average EPS estimate is $4.66.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 2,999 members out of 3,082 rating the stock outperform, and 83 members rating it underperform. Among 546 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 529 give Schlumberger a green thumbs-up, and 17 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Schlumberger is outperform, with an average price target of $89.83.

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

Add Schlumberger to My Watchlist.

A Basket of Promising Small-Caps

Exchange-traded funds offer a convenient way to invest in sectors or niches that interest you. If you'd like to add some small-cap stocks to your portfolio, but don't have the time or expertise to handpick a few, the Guggenheim Russell 2000 Equal Weight ETF (NYSEMKT: EWRS  ) could save you a lot of trouble. Instead of trying to figure out which companies will perform best, you can use this ETF to invest in lots of them simultaneously.

The basics
ETFs often sport lower expense ratios than their mutual fund cousins. The Guggenheim ETF's expense ratio -- its annual fee -- is a relatively low 0.41%. The fund is very small, too, so if you're thinking of buying, beware of possibly large spreads between its bid and ask prices. Consider using a limit order if you want to buy in.

This ETF is too young to have a sufficient track record to assess, but for the curious, it underperformed the S&P 500 in 2012, and is ahead of it so far this year. As with most investments, of course, we can't expect outstanding performances in every quarter or year. Investors with conviction need to wait for their holdings to deliver.

Why small caps?
It's smart to include smaller companies in your portfolio, as the best of them can grow rapidly, and eventually become large caps.

More than a handful of small-cap companies had strong performances over the past year. SUPERVALU (NYSE: SVU  ) surged 200%. The company has suspended its dividend, in order to cut costs and more effectively compete in its low-margin industry, where it also faces growing competition from Wal-Mart and other discounters. Some rivals such as Whole Foods Market have been able to maintain higher margins by offering organic produce and higher-end products. SUPERVALU has been reshaping itself and selling off some brands, and apparently many investors are hopeful.

Boulder Brands (NASDAQ: BDBD  ) gained 38%, and though you may think you don't know the company, it used to be Smart Balance until recently, and sports healthy-leaning brands, such as Smart Balance, Udi's, Glutino, Earth Balance, and Best Life. (The company is based in New Jersey, not Colorado, too.) Boulder recently bought 80% of GlucoBrands, owner of Level Life Foods, which specializes in blood-sugar-managing products such as bars and shakes. Boulder Brands is free-cash-flow positive and enjoying double-digit revenue growth.

Diamond Foods (NASDAQ: DMND  ) advanced 17%, posting a surprising gain instead of an expected loss in its last quarter. Some have worried about a drop in nut sales, and view the company as a possible acquisition target, while others think the company might want to do some shopping of its own. Diamond is also recovering from accounting-related troubles, and a new possible worry is the FDA looking into why salmonella has been turning up in nuts recently.

Other companies didn't do as well last year, but could see their fortunes change in the coming years. Dietary supplement maker Star Scientific (NASDAQ: STSI  ) sank 60%, with some investors worried about persistent net losses and even scandals. In its last quarter, the company blamed its growing losses on increased sales efforts, and also noted significant legal costs related to investigations and class-action lawsuits. Bulls noted solid sales growth for its inflammation-treating supplement, Anatabloc.

The big picture
A well-chosen ETF can grant you instant diversification across any industry or group of companies -- and make investing in and profiting from it that much easier.

This is not the only ETF worth considering. I invite you to check out The Motley Fool's special free report, "3 ETFs Set to Soar," to learn more about a few ETFs that have great profit-delivering potential for shareholders. Just click here to access it now.

Thursday, July 18, 2013

Homemade Soda Is the New Store-Bought Soda

On Monday, Green Mountain Coffee Roasters (NASDAQ: GMCR  ) filed a trademark application for a soda maker that looks like it could compete with SodaStream   (NASDAQ: SODA  ) . The Karbon trademark is set to be used for soda making and sparkling beverages, according to the company's filing. The success of Green Mountain's Keurig coffee brewers should give SodaStream pause, and perhaps a reason to re-evaluate the aggressiveness of its marketing.

SodaStream is currently in a comfortable position as the only real name in homemade soda. While other companies have made attempts, none of them have had the clout that Green Mountain could bring to the venture. The move makes sense for Green Mountain, and the long road for SodaStream just got bumpier.

Why Green Mountain would want soda
The beauty of the soda-maker model is that it parallels the company's existing coffee model. There's a countertop machine that uses disposable cartridges, and the company sells the machines at close to cost to make long-term cash off the cartridges. In its last quarter, for instance, Green Mountain earned 79% of its revenue from its single serve packs. Homemade soda is almost the same thing. SodaStream generated 60% of quarterly revenue from consumables last quarter, and that revenue grew 37% year over year.

For Green Mountain, the ease of transitioning into soda makes it a natural fit. The company already gets how the system works, and it has a great network of companies that it can work with. While SodaStream has mixes from Kool-Aid, Country Time, and Crystal Light, Green Mountain has coffee connections that it's ready to put to work in the soda business.

Green Mountain works with Newman's Own, Starbucks (NASDAQ: SBUX  ) , and Snapple, to name a few. Those brands all have flavors that would work well with the new carbonating system, and Starbucks in particular has a gold mine up its sleeve. The company's Refreshers line of energy drinks has been a success, and the beverages lend themselves to carbonation.

The good news for SodaStream
While the idea of Green Mountain getting into carbonated beverages may seem like bad news for SodaStream, I think the increased competition is going to work well for the company. By adding its bulk to the industry, Green Mountain should bring more consumers into the "make your own" world.

If SodaStream continues to produce high-quality machines, it's going to get more and more attention as consumers compare the Karbon to the SodaStream line. That should result in more sales for both companies, and give SodaStream a nice little boost to its bottom line. Overall, I think the addition of Green Mountain to the soda system business is going to be a good thing for everyone.

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Wednesday, July 17, 2013

Why Bernanke's Words Don't Matter to Investors

U.S. stocks are little changed this morning as Federal Reserve Chairman Ben Bernanke begins his two-day round of testimony on Capital Hell, with the S&P 500 (SNPINDEX: ^GSPC  ) and the narrower, price-weighted Dow Jones Industrial Average (DJINDICES: ^DJI  ) up 0.28% and 0.1%, respectively, as of 10:10 a.m. EDT.

Everything you need to know about the Fed chairman's testimony
And speaking of Mr. Bernanke's testimony, in yesterday afternoon's commentary, I wrote:

Don't expect any surprises from Bernanke, who will be satisfied to keep hammering his audience with the stance articulated at the last Federal Open Market Committee meeting.

Furthermore, the Fed's policy path will ultimately depend on economic data that isn't available yet -- it's more than likely the central bank does not itself know at this time precisely when or how it will begin tapering its monthly bond purchases (i.e., "quantitative easing").

In his prepared testimony at the hearing before the Committee on Financial Services, which began at 10 a.m. EDT, Bernanke reiterated the provisional "taper" calendar the Fed laid out last month, according to which it would begin to reduce its monthly bond purchases later this year before ending them roughly midway through 2014. However, he was careful to qualify this:

The Committee's decisions regarding the asset purchase program (and the overall stance of monetary policy) depend on our assessment of the economic outlook and of the cumulative progress toward our objectives. Of course, economic forecasts must be revised when new information arrives and are thus necessarily provisional. ... I emphasize that, because our asset purchases depend on economic and financial developments; they are by no means on a preset course.

If anything, the full testimony suggests that Bernanke has made a slight shift toward maintaining easier monetary policy longer -- The Wall Street Journal's Jon Hilsenrath reads the tea leaves for you here.

Yesterday, I also wrote that "for long-term fundamental investors, Bernanke's trip to Capitol Hill is a non-event; for traders, on the other hand, it's vital stuff." Let me explain why that is: With the S&P 500 around 1,680 this morning, roughly 90% of the index's value is attributable to earnings that companies will generate in 2015 and beyond. What possible difference could it make to underlying business values if the Fed were to extend the quantitative-easing calendar by one quarter, six months, or even a full year, except inasmuch as this reflects changes in the economy (which we cannot foretell)?

Instead of hanging on Mr. Bernanke's every word, investors are better off looking for great businesses with long-term competitive advantages that produce ample cash flows. That's exactly what The Motley Fool's chief investment officer did in selecting his No. 1 stock for this year. Find out which stock it is in the special free report: "The Motley Fool's Top Stock for 2013." Just click here to access the report and find out the name of this under-the-radar company.

Canadian Stocks For 2020

Canadian Stocks For 2020