Stocks weak as U.S. shutdown looms

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NEW YORK (CNNMoney) Stock markets are set for a sell-off Monday as political squabbling in Washington threatens to lead to a government shutdown at midnight.

U.S. stock futures were all down by roughly 0.8% as investors lose faith in their political leaders and worry about the effect that a shutdown could have on the U.S. economy.

"If nothing is agreed by tonight, which seems likely, there will be an economic hit as some [government] employees are put on unpaid leave and non-essential government services close," explained economist Robert Wood from Berenberg Bank.

Monday is the last day of the month and the third quarter. Both the Dow Jones industrial average and the S&P 500 index have risen by well over 3% so far in September, hitting record highs as investors cheered continued stimulus by the U.S. Federal Reserve. All three indexes are up for the quarter, led by the Nasdaq, which has risen 11%.

But markets have pulled back as the shutdown looms and the U.S. nears its debt ceiling, a limit on the amount it can borrow. If the government hits its debt ceiling in mid-October, it will not be able to pay its bills and will default, though many people believe a last-minute solution will be found.

U.S. stocks fell Friday. The Dow and S&P finished the week with a 1% loss, though the Nasdaq eked out a gain.

European markets were all falling in midday trading, with renewed political turmoil in Italy further undermining sentiment. Of the major indexes, the CAC 40 in Paris was deepest in the red, declining by 1.3%.

Italian markets took a hit after Silvio Berlusconi pulled his support for the country's coalition government over the weekend, threatening early elections. The main Italian stock index fell by over 1.5% and yields on ! 10-year government bonds edged higher.

"Berlusconi has thrown Italian politics into potential chaos again after ordering his five ministers to resign from the coalition," wrote Deutsche Bank analyst Jim Reid, in a market report. "It's an impressive feat to knock off a potential U.S. government shutdown from top billing but Berlusconi might have achieved it."

Asian markets closed with losses, though the Shanghai Composite index bucked the trend and moved higher. China launched a free trade zone in the city on Sunday, an experiment in promoting trade, expanding foreign investment access and liberalizing the financial sector.

Is the IPO Market Overheating?

For years, initial public offerings inspired huge feeding frenzies among investors looking to buy shares of hot companies. Yet after the Facebook (NASDAQ: FB  ) IPO, all that changed, and investors burned by Facebook's initially falling shares swore off the IPO market. More recently, though, big first-day performance from some initial public offerings in the past few months has investors getting greedy once more.

In the following video, Dan Caplinger, director of investment planning for The Motley Fool, looks at whether the IPO market is overheating once more. Dan points to some huge gains from recent IPOs, with FireEye (NASDAQ: FEYE  ) rising 80% in its first day while Rocket Fuel (NASDAQ: FUEL  ) and Foundation Medicine (NASDAQ: FMI  ) both posted gains of between 90% and 100%. Dan also highlights Sprouts Farmers Market  (NASDAQ: SFM  ) , which climbed a whopping 123% in its first day as a public company.

In assessing those gains, Dan observes that all four of those companies are in industries that are popular for investors. Rocket Fuel offers digital advertising based on data analysis and artificial intelligence, capitalizing on the Big Data trend. FireEye provides cybersecurity services, an equally important commodity in the tech revolution. Foundation Health offers diagnostic tests that could change the way millions of patients get cancer treatment, while grocery-store chain Sprouts Farmers Market tries to take advantage of the healthy-food movement that has catapulted larger competitors to long-term success.

Dan concludes, though, with the observation that many IPO buyers just want stocks that they can't get from index funds and exchange-traded products. With a premium on novelty, investors have to be careful in avoiding hype and buying smart companies with long-term potential.

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Fed Strategy from Mohammed Ali

Bernanke's actions last week - failing to taper, yet still trying to maintain the illusion that QE is a good thing - are setting up a one-two punch that's not unlike boxing champion Mohammed Ali's famous "float like a butterfly, sting like a bee" approach.

If you recall, Ali was a master of the combination - some say the best ever. He loved to bring his opponents in close. Ali could see through the duplicity of his opponents' strategy and land punches that won decisively.

Ali did that using combinations that were based in fighting terms on two contrasts: high-low or short-long, or even left and right. He pressed every advantage he could find, even when others thought there were none to be had. Knowing he wanted to go the full 15 rounds, Ali developed a strategy that would become known as the "rope-a-dope" as a means of tiring out his opponents early on, then vanquishing them in later rounds when the fight really began.

I think we should take a page from Ali's playbook and split the "fight" Bernanke's presented us with into two distinct time zones: the current "round," and those that happen down the line. One short. One long.

Is that possible?

Absolutely. What's more, it's easy to do.

First, though, put yourself in Bernanke's place...

Losing His "Final Round" Would Crush You, the Markets, and Bernanke Himself

For all the lip service he pays to wanting growth, in reality, Bernanke's game is all about defense... from the moment he wakes up to the moment he goes to bed.

Why is pretty simple.

Right now, he has to keep a lid on everything from the looming budget battle to the Middle East. His risk is that the consumer gets crushed if he doesn't. So he's going to keep buying, lest he create a market crash that goes down on his watch, destroying his reputation and vaporizing the rumored $10 million advance for his memoir.

Longer term, he's got trillions of reasons why he doesn't want to pop the bubble, the most important of which is that he doesn't want to lose control over the bond markets and, by implication, interest rates.

The rub is that he will anyway. And I think Chairman Bernanke is acutely aware of that now, because derivatives traders are beginning to circle like sharks sensing blood in the water.

Factor in trillions of dollars, and there's enough fuel to drive rates higher for decades after he's gone, especially if you look at how far rates have fallen.

Since 1981, they've plummeted from 15% to a mere 3.46%, as of Monday.

The far more likely course of action is that they rise like they did from 1950 to 1981... especially when you look at the bigger picture and understand that interest rates move in multi-decade cycles.

(By the way, if you're wondering why there's no data from January 1, 1987, through September 30, 1993... The Fed discontinued the 20-year constant maturity series at the end of the calendar year 1986 and reinstated the series on October 1, 1993.)

A One-Two Investment Approach

1. For the near term, try the Pimco Strategic Global Government Fund (NYSE: RCS).

Managed by Allianz Global Investors Fund Management LLC, the fund is constructed of intermediate-term, high-quality government securities. The fund can invest in mortgage-related and asset-backed securities, too, if managers so desire. It's also got the flexibility to pick up foreign paper.

The dividends are paid monthly, which means that income-hungry investors will get cold, hard cash in their accounts regularly. That's not insignificant, considering the yield is a healthy 9.2% as of press time, according to Allianz.

2. For the longer term, I can't think of a better pick than the ProShares Short 20+ year Treasury (NYSE Arca: TBF).

This ETF is one of a specialized class of inverse funds that zigs when the universe around which it's constructed zags. In this case, TBF is designed to appreciate while longer-term U.S. bonds deteriorate.

As its name implies, the fund concentrates investments in U.S. Treasury securities with maturity dates longer than 20 years. That's great, because longer-dated maturities are the most volatile in the face of rising interest rates and, therefore, potentially offer some really great returns.

There's no yield, and the 0.95% in expenses doesn't make this the cheapest alternative out there, but I like the liquidity afforded us by the $1.47 billion in assets. It's also unleveraged, which means that performance-reducing tracking error that plagues similar double- and triple-leveraged funds is minimized.

At the end of the day, it's important to remember that interest rates will return to normal sooner or later, and these two investments will help you capture profits that can be yours for the taking when they do.

You don't have to play defense even if Bernanke does.

Best regards for great investing,

Keith

P.S. If you're wondering about equities, I'll be back in a few days with my take. But here's a hint if you just can't wait: Equities remain under-owned compared to bonds - this despite a 135% run up off March 2009 lows, and despite Bernanke's near laser-like focus on cheap money. So there's an incentive for the institutions to lever up even further and, in the process, goose stock market returns through the balance of the year. I know that with the S&P 500 and Dow waffling this week that this is hard to imagine, but don't forget - so was the concept of trillions of dollars of stimulus a few years ago.

Next: "The Secret to Superior Returns," where Keith shares one of the key strategies driving his Money Map Report's outstanding total return...

Regeneron Pharmaceuticals Inc (REGN): Well Positioned To Rival Amgen In Multi-Billion Dollar Cholesterol Drug Market

The safety and tolerability profile for Regeneron Pharmaceuticals, Inc.'s (NASDAQ:REGN) anti-PCSK9 antibody Alirocumab is in good stead against Amgen's AMG145, and supports upside potential of the Regeneron antibody in the multi-billion dollar market for cholesterol lowering drugs.

Alirocumab is a fully human monoclonal antibody that binds a protein called PCSK9. Alirocumab is being evaluated to manage low-density lipoprotein cholesterol (LDL-C), or "bad" cholesterol. Alirocumab is being evaluated to manage LDL cholesterol, including in people who do not get to their target LDL levels using statin medicines alone.

On the other hand, Amgen, Inc.'s (NASDAQ:AMGN) AMG 145 is an investigational human monoclonal antibody that inhibits PCSK9, a protein that reduces the liver's ability to remove LDL-C from the blood.

Elevated LDL-C is recognized as a significant risk factor for cardiovascular diseases. Despite the availability of various treatments to lower LDL-C, it is estimated that LDL-C is not well-controlled in two-thirds of treated, high-risk patients. There are a lot of generic drugs such as AstraZeneca's/Shionogi's Crestor and Merck's ezetimibe franchise—Zetia (ezetimibe), Vytorin (ezetimibe/simvastatin) and Liptruzet (ezetimibe/atorvastatin).

Review of published data across seven phase 2 studies and about 1255 treated patients reveals that Regeneron's anti-PCSK9 is set to become a well tolerated class of drug with low rates of adverse events (AEs) and serious adverse events (SAEs).

"With ~275 patients worth of phase 2 data for alirocumab and with ~980 patients worth of phase 2 data for AMG145, differences are notable in terms of more injection site reactions (ISR), low titer antibody measures and one-off immune reactions with alirocumab, while CK elevations and myalgias/myositis have been documented more often with AMG145," BMO Capital Markets analyst Jim Birchenough wrote in a note to clients.

Meanwhile, efficacy has been well established for both compounds with! comparable 66 percent reduction in LDL as add-on therapy to statins.

Last month, Amgen said its AMG 145 reduced bad cholesterol up to 59 percent in an efficacy analysis of pooled data from four 12-week Phase 2 studies evaluating AMG 145 in patient populations with high cholesterol.

Large phase 3 programs, including outcomes data are ongoing with initial data expected for both compounds in 2014. Sanofi expects to launch in 2015, with a global ramp in 2016 while Amgen seems to be a little less than 6 months behind Sanofi.

Following a detailed review of Alirocumab safety and tolerability, Regeneron's antibody is well positioned to withstand tough competition from Amgen's AMG145. Meanwhile, Pfizer, Roche and Novartis are also targeting this market.

Alirocumab news flow should accelerate into 2014. The results of two Phase III trials in statin intolerant patients are expected by the end of this year or early 2014. Several more trials will follow in 2014 and then a few more through 2018.

Decision Resources, one of the world's leading research firms for pharmaceutical and healthcare issues, finds that the dyslipidemia market will grow to just over $31 billion in 2022, at an annual rate of 2 percent from 2012. The launch of antidyslipidemic agents from two novel drug classes–PCSK9 and CETP inhibitors–will be the primary drivers of market growth, off-setting the voracious genericization that has and will continue to impact the market through 2022.

Although the number of patients who are not controlled on statins in the US is 11 million, Regeneron estimates another 1 million who are refractory to or intolerant of statins, which shows that even modest penetrations could lead to a multi-billion-dollar product. Given that the market could be $10 billion plus for these drugs, the opportunity, even with multiple players, appears large.

"With a statin market previously peaking at nearly $24B in sales and with ~1/3 of patients identified as statin inadequate responders we b! elieve th! at efficacy and favorable safety of anti-PCSK9 mAbs could support an $8B+ opportunity, shared equally between the two leading compounds," Birchenough said.

While rare immune reactions are noted with Alirocumab, the aggregate safety and efficacy support a $4 billion drug.

Regeneron is developing alirocumab in collaboration with Sanofi. In the US, Regeneron will share profits 50/50 with Sanofi. In the rest of the world (ROW), Sanofi will receive a higher share of profits starting at 65 percent and falling to 55 percent as profit increases. Regeneron will also share losses in the US at 50 percent and in the ROW at 45 percent. 

Insiders Are Buying Morguard North American Residential Real Estate Investment Trust

One real estate investment trust has seen intensive insider buying during the last 30 days. Intensive insider buying can be defined by the following three criteria:

The stock is purchased by three or more insiders within one month.

The stock is sold by no insiders in the month of intensive purchasing.

At least two purchasers increase their holdings by more than 10%.

North American Residential Real Estate Investment Trust (TSX:MRG.UN) is an unincorporated, open-ended real estate investment trust which owns, through a limited partnership, interests in a portfolio of 14 Canadian residential apartment communities, located in Alberta and Ontario, and 30 U.S. low-rise and mid-rise, garden-style apartment communities located in Alabama, Colorado, Florida, Georgia, Louisiana, North Carolina and Texas consisting of 12,850 residential suites.

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[ Enlarge Image ]

Insider Buying During the Last 30 Days
Paul Miatello purchased 2,783 shares on Sept. 13 and currently holds 7,783 shares or less than 0.1% of the company. Paul Miatello is the chief financial officer at Morguard Corporation (TSX:MRC). Paul Miatello increased his holdings by 55.7% in September.Bruce Robertson purchased 9,600 shares on Sept. 12 and currently holds 76,100 shares or 0.3% of the company. Bruce Robertson serves as a director of the company. Bruce Robertson increased his holdings by 14.4% in September.Rai Sahi purchased 10,000 shares on Sept. 20 and currently controls 235,000 shares or 0.8% of the company. Rai Sahi is chairman and chief executive officer of Morguard Corporation. Rai Sahi increased his holdings by 4.4% in September.Insider Buying by Calendar Month

Here is a table of Morguard North American REIT's insider-trading activity by calendar month.

Month	Insider buying / shares	Insider selling / shares
September 2013	22,383	0
August 2013	26,500	0
July 2013	43,000	0
June 2013	0	0
May 2013	0	0
April 2013	0	0

There have been 91,883 shares purchased, and there have been zero shares sold by insiders since April 2013.

Financials

Morguard North American REIT reported the second-quarter financial results on July 31 with the following highlights:

Revenue	$34.7 million
Funds from operations	$8.2 million
Cash	$8.9 million
Debt	$930.4 million
Book value	$16.87 per share

Competition

Morguard North American REIT's competitors include True North Apartment Real Estate Investment Trust (TSX:TN.UN), and Boardwalk Real Estate Investment Trust (TSX:BEI.UN).

Here is a table of these competitors' insider-trading activities during the last six months.

Company	Insider buying / shares	Insider selling / shares
TN.UN	443,150	0
BEI.UN	19,218	14,166

Only Morguard North American REIT has seen intensive insider buying during the last 30 days.

Conclusion

There have been three different insiders buying North American REIT and there have not been any insiders selling North American REIT during the last 30 days. Two of these three insiders increased their holdings by more than 10%.

Morguard North American REIT has a book value of $16.87 per share and the stock has a dividend yield of 6.4%. I believe the stock could be a good pick below the book value of $16.87 per share based on the intens! ive insid! er buying.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

The Best Stock Under $10?

Editor's Note: Bill recommended this little security firm to his Private Briefing readers back in June, when shares traded for $6.10. They closed above $9 a share last week, but Bill thinks there's still a ton of upside here. And thanks to some analyst-induced selling yesterday, you can buy all this growth potential at an even better price...

Since we recommended Kratos Defense & Security Solutions Inc. (Nasdaq: KTOS) back on June 6, the stock has soared nearly 40%.

And we believe there's more to come.

A lot more.

Founded in 1994, the San Diego-based Kratos is a specialized security-technology company that provides products and services crucial to U.S. national security priorities.

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That national security focus is borne out by the company's customer base, which includes the U.S. Army, U.S. Air Force, U.S. Navy, the National Aeronautics and Space Administration (NASA), the Defense Logistics Agency (DLA), and the U.S. Department of Homeland Security.

The company also serves a number of strategic military bases and defense locations throughout the United States.

And wait until you see all the new business this $475 million small cap is landing...

Kratos Is a Full-Menu Operation

The services Kratos offers are involved with command, control, communications, computers, combat systems, intelligence, surveillance and reconnaissance (captured under the all-encompassing military acronym "C5ISR"), weapons-systems lifecycle support, military-weapon-range and technical services, network-engineering services, advanced IT services, security and surveillance systems, and critical-infrastructure design and integration services.

If we decode all that a bit for you, we can say that Kratos is involved in some areas whose growth potential we like a lot - including unmanned aerial vehicles (UAVs or "drones"), anti-missile-defense technology, and cybersecurity.

Best of all from an investment standpoint: During a time of tight budgets and sequestration-related cutbacks, the U.S. military can't launch multi-billion-dollar acquisition programs for new systems; it has to make do by maintaining what it has.

And some of what it has are so-called "legacy systems" that aren't made anymore, and that only a handful of companies are qualified to service.

Kratos is one of those companies, says Michael Robinson, our resident defense-and-technology specialist who edits the Radical Technology Alert advisory service.

"Bill, in lean times like these, the Pentagon just doesn't have the cash to fund a lot of the advanced, 'Next-Gen' systems it has on the drawing boards," Michael explained. "Seeing this, Kratos shifted gears and moved away from services to hardware, focusing on legacy systems. By definition, these have strong barriers to entry. Basically, the company gets designed into these aging platforms. When I talked to the CEO recently, he said that, for Kratos, it's like they've got the 'keys to the kingdom.' Clearly, the market finally woke up to that fact and the stock has just gone on a tear, making it the small-cap defense firm to own."

In short, we see much more upside for this company.

As Michael noted, there aren't going to be a slew of new competitors entering the legacy defense businesses.

And Kratos isn't standing pat.

It recently announced plans to enter the drone business, which is one of the fastest-growing sectors in defense technology. And it's also pushing deeper into security and cybersecurity-related areas.

Kratos is well-positioned to benefit from the explosive growth of the U.S. Cyber Command, which is expected to grow from about 900 workers now to as many as 4,900 by the end of 2015. Most of this new cyberspace strike force will be based in the new $358 million headquarters being built at Fort Meade, Maryland, which is located in the Washington, D.C., suburbs.

Kratos Keeps Landing New Business, Too...

Back on Aug. 21, the company announced that it had won a new five-year defense contract with a potential value of $6 billion.

Under the agreement, Kratos will provide continuous monitoring as a service to the U.S. Department of Homeland Security for its "Continuous Diagnostics and Mitigation Program." The program is designed to protect government information-technology networks from cybersecurity threats.

Patrick Howard, a Kratos executive who previously served as the chief information security officer with the Nuclear Regulatory Commission (NRC), will lead the effort.

That same week, the Kratos Electronic Products Division received orders valued at $3.1 million for the production of integrated microwave assemblies (IMA) for two critical U.S. Navy platforms. These "follow-on" awards are related to continuing production on long-term electronic attack (EA) and intelligence, surveillance, and reconnaissance (ISR) airborne platforms. No additional details were provided due to customer and other sensitivities.

Richard F. Poirier, the Electronic Products Division president, said "these orders are the latest significant awards received from this prime contractor for integrated microwave assemblies. Kratos has participated in these programs for many years and continues to be a valued supplier with the expertise capable of providing sophisticated integrated microwave assemblies and subsystems for these U.S. Navy aircraft."

We'll keep watching this stock for you...

Bill follows up on one or more of his recommendations every day. Just sign up for his daily Private Briefing to get the updates... and all of his new picks. As Bill will tell you right here, your timing couldn't be better, thanks to yesterday's big "Fed Event."

Facebook: Worth More Than Intel?

Within the first hour of trading on Monday morning, shares of Facebook Inc. (NASDAQ: FB) have risen more than 3% and the company's market cap has risen to about $102 billion. Intel Corp. (NASDAQ: INTC) has slipped a little and the chipmaker's market cap now stands at about $111.5 billion. Can it be that social media will soon be more valuable than the world's largest maker of semiconductors?

Facebook is already worth more than General Motors Co. (NYSE: GM) and Ford Motor Co. (NYSE: F), double GM and about half again as much as Ford. As recently as early June, Facebook's stock was trading at just more than half its share price today.

What happened was the company's second quarter. Facebook demonstrated that it could make serious money in the mobile market. More than 40% of Facebook's second-quarter total revenues of $1.8 billion came from mobile advertising. Putting advertising in a user's news feed stream made the difference.

Intel's second quarter revenues totaled $12.8 billion, and its gross profit margin was around 58%. Not bad, but well below Facebook's gross margin of just over 74%. For comparison, Microsoft Corp. (NASDAQ: MSFT) posted a gross margin of about 72% in the second quarter. Software margins are high and they stay high for years. Facebook's foothold in the mobile market should only grow stronger in the near- to mid-term.

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Intel is associated with a PC and server market that is gradually losing sales, and the company's mobile chip business is far from a runaway success. The company's push to develop an “over-the-top” Internet streaming service could be stalled as well. The chipmaking giant is trying to cast a wider net, but it is not the only company fishing in the pond, and it was very late off the dock.

Facebook's shares hit a new 52-week high this morning of $41.93. The annual low is $17.55, and volume is very heavy at nearly 44 million shares traded so far today.

Here's Why Natural Gas Is a Buy

NEW YORK (TheStreet) -- I love natural gas and energy in general. I follow natural gas and oil using U.S. Natural Gas Fund (UNG) and United States Oil Fund (USO) exchange-traded funds because of their ease in trading.

Add in the S&P 500 ETF (SPY) and PowerShares 100 (QQQ) and you can ascertain the entire economy as quickly as any other method. [Read: 5 Breakout Trades to Take Ahead of the Fed]

For example, if you want to budget for heating your home this winter compared to last year, reviewing the weekly natural gas chart will paint a picture accurate as anywhere else. You may not know it but natural gas can do much more than heat our homes, it has the potential to end our dependence on foreign energy imports.

The road to energy independence comes from natural gas displacing diesel and gasoline motor fuels. Companies focused on the transition from our oil dependency include Westport (WPRT), Clean Energy (CLNE), and Cummins (CMI). Energy independence isn't the only benefit from utilizing natural gas, at current prices; natural gas is a lot cheaper per mile to operate than gasoline or diesel. Currently, there are two barriers slowing widespread implementation. The first is the upfront cost. It costs more to enable a vehicle to operate on natural gas, especially a dual-fuel vehicle. Because natural gas is cheaper, the upfront costs can more than be made up from lower operating costs. By some estimates, commercial trucks using Westport's or Cummins' natural gas engines can realize a breakeven point in about 12 to 14 months. Second, refueling stations aren't as prolific as diesel stations, much less gasoline. That's quickly changing, in part, thanks to Clean Energy. Clean Energy Company operates over 300 natural gas fueling stations in the United States and more in Canada. It takes time to build critical mass, but the concept is catching on based on Ford (F) and General Motors (GM). F-150 and Chevy Silverados capable of burning natural gas instead of gasoline are now available. Dodge Ram rounds out the pickup trucks and Honda (HMC) makes a passenger vehicle. Even BNSF Railway, the largest railroad in the U.S. and a subsidiary of Berkshire Hathaway (BRK-B), started testing natural gas in locomotive engines developed by General Electric (GE) and Caterpillar (CAT). [Read: Investment Ideas From Day 1 of the NY Value Investing Congress] How can you profit from expanding natural gas use? The most obvious choice is to buy UNG shares if you don't want to trade commodities. But I'm going to share with you an alternative investment.

I prefer writing options because sellers are paid for holding time and selling a put is lower risk than buying the underlying shares. As of writing, the January $18 strike put options are selling for about 78 cents. If we sell this contract and natural gas prices implode causing the buyer to exercise, the cost basis is $17.22 cents.

Using the back of the envelope math, under $17 isn't sustainable because producers can't make money and will take rigs offline, stop development, etc. Absent a significant production cost drop or black swan event, it's not probable UNG will fall and stay below $17 for long. If it does happen, simply sell calls against the shares, collecting option premium until a recovery or it doesn't make sense to hold any longer. [Read: Unwarranted Apple Hate ]

If UNG remains near $19.81 at expiration, we keep the entire premium as profit and can rinse and repeat. The maximum profit is 78 cents, and that's ok by me because I think about how much I can lose, not how much I can make.

At the time of publication the author had no position in any of the stocks mentioned. Follow @RobertWeinstein This article was written by an independent contributor, separate from TheStreet's regular news coverage.

Robert Weinstein is an active trader focusing on the psychological importance of risk mitigation, emotion and financial behavior of market participants. Robert co-founded the investing blog StockSaints, where he writes a journal about his trading activity and experiences. In addition to TheStreet, Robert also contributes to Real Money Pro, providing real-time trading ideas for stocks, options and futures.

Investors Signal Now's the Time to Buy Coal

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NEW YORK (TheStreet) -- On Friday, U.S. Environmental Protection Agency Administrator Gina McCarthy announced new coal-burning electric plants will have limits on the amount of carbon dioxide they emit into the air. The announcement wasn't unexpected after President Obama announced plans to limit greenhouse gases.

However, the results on your portfolio and electric bill may be.

What happens when you mix a Boston Clean Air Task Force, EPA, Department of Energy, Sierra Club, Mississippi Public Service Commission, White House limits on greenhouse-gas emissions and a new carbon capturing electric power plant by Southern Co (KBR)?

Lawsuit after lawsuit, a billion dollars in cost overruns, taxpayer subsidies and the most expensive coal plant to operate causing electric rates to skyrocket, if this becomes the norm. The new project is called Plant Ratcliffe by Southern Co. Plant Ratcliffe is quite the boondoggle, but proponents say it always costs more to build the first one and costs will come down as the technology improves. More plants are in the planning stages and may bring a needed shot in the arm to mining stocks. Alpha Natural Resources (ANR), Walter Energy (WLT), Arch Coal (ACI), Cliffs Natural Resources (CLF), Peabody Energy (BTU), and James River Coal (JRCC) are companies that may benefit from increased demand for coal. Not all coal or coal companies are equal, so it's crucial to discriminate based on your investment time-horizon goals. With that said, the announcement should have been followed by a deep sell-off in coal and utility related stocks. But something happened. Or, rather, didn't happen. The above coal stocks didn't sell off tremendously and are largely moving along with the rest of the market today. This is noteworthy because stocks don't bottom on good news, they reach a bottom on awful news. Let me explain: When a stock chart continues trending lower, what you're witnessing is investors throwing in the towel and moving on. Leaving aside bankruptcies for a moment, almost all stocks have a core group of investors that are commonly known as the "strong hands." A stock is at the bottom when the weak hands are gone. At some point, distressing news (like an unfavorable EPA announcement regarding coal) hits the wire and the related stock or stocks react with little or no movement. This is what we are witnessing right now in coal-related companies.

The above companies are only marginally lower today. After adjusting for a drop in the S&P 500 of over half a percent, as seen by the SPDR S&P 500 ETF (SPY), the coal-related stocks are essentially flat. This sets up a buying opportunity for long-term investors.

Because this is a long-term play, I especially like selling option premium, so we get paid for our time while lowering our risk. Here is one idea that you may consider.

Option activity for Cliffs Natural Resources has climbed recently, especially this week, and the stock is oversold technically. This sets Cliffs slightly ahead of the pack. But any of the above coal miners are viable candidates.

We can currently sell a November $17 strike put option for about 38 cents. The $17 strike allows over $5 of downside before the writer experiences a decline in profitability. If Cliffs is trading above $17 at the expiration, the entire option premium is profit, a 2.2% gain in 56 days. The trade has an expected 90% chance of being profitable. At the time of publication the author had no position in any of the stocks mentioned. Follow @RobertWeinstein This article was written by an independent contributor, separate from TheStreet's regular news coverage.

Robert Weinstein is an active trader focusing on the psychological importance of risk mitigation, emotion and financial behavior of market participants. Robert co-founded the investing blog StockSaints, where he writes a journal about his trading activity and experiences. In addition to TheStreet, Robert also contributes to Real Money Pro, providing real-time trading ideas for stocks, options and futures.

Nomura Securities Upgrades Barclays to “Buy” (BCS)

Nomura Securities reported that it has upgraded financial services company Barclays PLC (BCS) to “Buy.”

The firm has lifted its rating on BCS two notches from “Reduce” to “Buy.” Normura has also raised its price target from 260p to 340p.

Analyst Chintan Joshi commented: “With growth in the developed world likely to continue well into the start of next year, stocks geared to capital markets should see macroeconomic support. Structural issues are an industry feature and Barclays could still come out better relative to peers compared with its current position. We expect 2015 ROTE of c12% and believe Barclays should be valued at a 2014E P/TB of 1x as we look for 1Q14 momentum. We set our ex-rights target price at 340p (cum rights it would be 380p), which puts the stock at a 2015E P/E of 6.4x, which is hardly demanding. Barclays is now our top pick among its IB and UK peers and a preferred way to gain exposure to the current risk rally. We upgrade our rating on Barclays to Buy from Reduce. We believe investors waiting for the infamous J curve may find that it is fairly muted for Barclays on the downside.”

Barclays shares were up 27 cents, or 1.40%, during pre-market trading Monday. The stock is up 11% YTD.

Payroll to Population Employment Rate Dips in August: Gallup

In a tracking survey that estimates the percentage of the U.S. population employed at least 30 hours a week, Gallup reports that the Payroll to Population (P2P) employment rate fell from 44.6% in July to 43.7% in August. The P2P rate in June was 44.8%, the highest reading so far in 2013.

In August 2012 the P2P rate was 45.3%, just slightly below a 45.7% reading in October 2012, a three-year high.

Gallup's seasonally adjusted unemployment rate in August rose from 7.4% in July to 8.6%. The "official" number due out Friday from the Bureau of Labor Statistics is expected to remain flat at 7.4%. On an unadjusted basis, Gallup's August unemployment rate rose to 8.7%, up from 7.8% in July and 8.1% in August 2012.

According to Gallup, its P2P metric is based on the entire population, not just those in the workforce as is the case with unemployment rate computations, nor does the survey include the self-employed, part-time workers, the unemployed or workers who are out of the workforce.

Best High Tech Companies To Watch For 2014

Gallup said that the percentage of part-time workers who want full-time jobs fell from 9.5% in July to 8.7% in August, its lowest level so far this year.

Gallup also reported that the workforce participation rate fell slightly from 67.7% in July to 66.4% in August. Workforce participation also fell year-over-year, from 68.1% in August 2012.

Friday's report from the Bureau of Labor Statistics is unlikely to show a drop in the unemployment rate, according to Gallup, and may even show a slight increase. Gallup also notes that unemployment in September already has begun to decline and is a "promising" sign for better employment numbers this month.

Should You Own Pfizer Stock?

With shares of Pfizer (NYSE:PFE) trading around $28.72, is PFE an OUTPERFORM, WAIT AND SEE or STAY AWAY? Let's analyze the stock with the relevant sections of our CHEAT SHEET investing framework:

T = Trends for a Stock’s Movement

Pfizer is a biopharmaceutical company that discovers, develops, manufactures, and sells medicines for people and animals worldwide. The company manages its operations through five segments: Primary Care; Specialty Care and Oncology; Established Products and Emerging Markets; Animal Health and Consumer Healthcare, and Nutrition. Pfizer’s main products include human and animal biologic and small molecule medicines and vaccines, nutritional products, consumer healthcare products, and products for the prevention and treatment of diseases in livestock and companion animals. Illness and disease is something that plagues people and animals around the world. Pfizer is in constant battle trying to improve its products in order to help people and animal struggling around the world. So long as health is a main concern for people and animals, Pfizer stands to see significant profits for years to come.

T = Technicals on the Stock Chart are Mixed

Pfizer stock has seen an explosive move higher over the last several years. The stock has reversed its long-term trend from down to up and sees no signs of slowing. Analyzing the price trend and its strength can be done using key simple moving averages. What are the key moving averages? The 50-day (pink), 100-day (blue), and 200-day (yellow) simple moving averages. As seen in the daily price chart below, Pfizer is trading around its rising key averages which signal neutral price action in the near-term.

(Source: Thinkorswim)

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

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	Implied Volatility (IV)	30-Day IV Percentile	90-Day IV Percentile
Pfizer Options	18.76%	10%	11%

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

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

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

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

E = Earnings Are Decreasing Quarter-Over-Quarter

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

	Hot Tech Stocks To Own Right Now 2013 Q1	2012 Q4	2012 Q3	2012 Q2
Earnings Growth (Y-O-Y)	58.33%	358%	-10.42%	30.30%
Revenue Growth (Y-O-Y)	-12.37%	-6.65%	-15.85%	-8.66%
Earnings Reaction	-4.46%	3.2%	-1.28%	1.39%

Pfizer has seen increasing earnings and revenue figures over most of the last four quarters. From these figures, the markets have had mixed feelings about Pfizer’s recent earnings announcements.

P = Average Relative Performance Versus Peers and Sector

How has Pfizer stock done relative to its peers, Merck (NYSE:MRK), Novartis (NYSE:NVS), Sanofi (NYSE:SNY), and sector?

	Pfizer	Merck	Novartis	Sanofi	Sector
Year-to-Date Return	14.66%	10.60%	18.59%	15.60%	15.91%

Pfizer has been an average performer, year-to-date.

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Conclusion

Pfizer provides valuable products for the health, wellness, and support of people and animals living in a multitude of countries around the world. The stock has been a strong performer in recent years and looks to have a strong uptrend intact. Earnings and revenue figures have been decreasing a bit, over the last four quarters, which has sent mixed signals to investors. Relative to its strong peers and sector, Pfizer has been an average year-to-date performer. WAIT AND SEE what Pfizer does this coming quarter.

Top 10 Insurance Stocks To Buy Right Now

Progressive (NYSE: PGR  ) will release its June earnings report on Thursday, but shareholders haven't waited to start the celebration. With the stock near multi-year highs, investors clearly believe the worst is over for the insurance industry generally, and for Progressive in particular.

Progressive is unusual in that it provides a monthly look at earnings. Lately, the stock has taken a roller-coaster ride, with dramatic moves in both directions resulting from high-profile disasters and improvements in the company's fundamentals. Let's take an early look at what's been happening with Progressive over the past quarter and what we're likely to see in its quarterly report.

Stats on Progressive

Analyst EPS Estimate Top 10 Insurance Stocks To Buy Right Now: W.R. Berkley Corporation(WRB) W. R. Berkley Corporation, an insurance holding company, operates as commercial lines writers in the property casualty insurance business primarily in the United States. The company operates in five segments: Specialty, Regional, Alternative Markets, Reinsurance, and International. The Specialty segment underwrites third-party liability risks, primarily excess, and surplus lines, including premises operations, professional liability, commercial automobile, products liability, and property lines. The Regional segments provide commercial insurance products to small-to-mid-sized businesses, and state and local governmental entities primarily in the 45 states of the United States. The Alternative Markets segment develops, insures, reinsures, and administers self-insurance programs and other alternative risk transfer mechanisms. This segment offers its services to employers, employer groups, insurers, and alternative market funds, as well as provides a range of fee-based servic es, including consulting and administrative services. The Reinsurance segment engages in the underwriting property casualty reinsurance on a treaty and a facultative basis, including individual certificates and program facultative business; and specialty and standard reinsurance lines, and property and casualty reinsurance. The International segment offers personal and commercial property casualty insurance in South America; commercial property casualty insurance in the United Kingdom and continental Europe; and reinsurance in Australia, Southeast Asia, and Canada. The company was founded in 1967 and is based in Greenwich, Connecticut. Top 10 Insurance Stocks To Buy Right Now: Genworth Financial Inc (GNW) Genworth Financial, Inc., a financial security company, provides insurance, wealth management, investment, and financial solutions in the United States and internationally. The company offers various insurance and fixed annuity products, including life and long-term care insurance products; payment protection insurance products for consumers primarily to meet specified payment obligations; and wealth management products, such as managed account programs with advisor support and financial planning services. It also provides mortgage insurance products and related services to insure prime-based, individually underwritten residential mortgage loans or flow mortgage insurance; and mortgage insurance on a structured or bulk basis, as well as offers services, analytical tools, and technology that enable lenders to operate and manage risk. In addition, the company provides institutional products consisting of funding agreements, funding agreements backing notes, and guaranteed in vestment contracts. Genworth Financial, Inc. distributes its products and services through financial intermediaries, advisors, independent distributors, affinity groups, and sales specialists. The company was founded in 2003 and is headquartered in Richmond, Virginia. Best Value Companies For 2014: Sun Life Financial Inc.(SLF) Sun Life Financial Inc., together with its subsidiaries, provides various life and health insurance, savings, investment management, retirement, and pension products and services to individuals and corporate customers. It offers individual life insurance policies, including individual term life, universal life, critical illness, disability, accident, and accidental death and dismemberment insurance policies; and group life insurance policies. The company also provides individual health insurance, long-term care insurance, group health benefits, dental benefits, and group insurance; and various individual and group annuity, retirement, and investment income products and services, such as mutual and pooled funds, variable and fixed annuities, savings, retirement and pension plans, and education savings. In addition, it offers asset management services for corporate retirement plans, separate accounts, public or government funds, and insurance company assets to institutional clients; and advisory services to individual investors. Further, the company provides run-off reinsurance services. Sun Life Financial Inc. distributes its products through direct sales agents, independent and managing general agents, financial intermediaries, broker-dealers, banks, pension and benefit consultants, and other third-party marketing organizations. The company operates primarily in Bermuda, Canada, China, Hong Kong, India, Indonesia, Ireland, the Philippines, the United States, and the United Kingdom. Sun Life Financial Inc. was founded in 1999 and is based in Toronto, Canada. Top 10 Insurance Stocks To Buy Right Now: Fairfax Financial Holdings Ltd (FRFHF) Fairfax Financial Holdings Limited (Fairfax) is a financial services holding company. The Company, through its subsidiaries, is principally engaged in property and casualty insurance and reinsurance and the associated investment management. The Company�� segments consist of Insurance, Reinsurance, Insurance and Reinsurance Other, Runoff, and Corporate and Other. On December 22, 2011, the Company completed the acquisition of 75% interests in Sporting Life Inc. On August 16, 2011, the Company acquired William Ashley China Corporation. On March 24, 2011, an indirect wholly owned subsidiary of Fairfax completed the acquisition of The Pacific Insurance Berhad. On February 9, 2011, an indirect wholly owned subsidiary of Fairfax completed the acquisition of First Mercury Financial Corporation. In October 2012, its RiverStone runoff subsidiary acquired all the outstanding shares of Brit Insurance Limited. Top 10 Insurance Stocks To Buy Right Now: Marsh & McLennan Companies Inc. (MMC) Marsh & McLennan Companies, Inc., a professional services company, provides advice and solutions in the areas of risk, strategy, and human capital. It operates in two segments, Risk and Insurance Services, and Consulting. The Risk and Insurance Services segment provides risk management and insurance broking, reinsurance broking, and insurance program management services for businesses, public entities, insurance companies, associations, professional services organizations, and private clients. The Consulting segment offers advice and services to the managements of organizations in the area of human resource consulting, comprising retirement and investments, health and benefits, outsourcing and talent; and strategy and risk management consulting, such as management, economic, and brand consulting. The company also provides investment consulting services for endowments and foundations in the United States; health and benefit recordkeeping, and employee enrollment technology; human resource knowledge, data, and solutions for professionals in various industries; and Medicaid policy consulting services. It principally serves customers in the United States, the United Kingdom, the Asia Pacific, and Continental Europe. Marsh & McLennan Companies, Inc. was founded in 1871 and is headquartered in New York, New York. Advisors' Opinion: [By CRWE] Marsh & McLennan Companies, Inc. (NYSE:MMC) held its annual meeting of shareholders, at which the Company announced that its Board of Directors has voted to increase the Company�� quarterly cash dividend by 5 percent to $.23 per share on outstanding common stock. Top 10 Insurance Stocks To Buy Right Now: The Travelers Companies Inc.(TRV) The Travelers Companies, Inc., through its subsidiaries, provides various commercial and personal property and casualty insurance products and services to businesses, government units, associations, and individuals primarily in the United States. The company operates in three segments: Business Insurance; Financial, Professional, and International Insurance; and Personal Insurance. The Business Insurance segment offers property and casualty products and services, such as commercial multi-peril, property, general liability, commercial auto, and workers? compensation insurance. It operates in six groups: Select Accounts, which serves small businesses; Commercial Accounts that serves mid-sized businesses; National Accounts, which serves large companies; Industry-Focused Underwriting that serves targeted industries; Target Risk Underwriting, which serves commercial businesses requiring specialized product underwriting, claims handling, and risk management services; and Special ized Distribution that offers products to customers through licensed wholesale, general, and program agents. The Financial, Professional, and International Insurance segment provides surety and financial liability coverage, which uses a credit-based underwriting process; and property and casualty products primarily in the United States., the United Kingdom, Ireland, and Canada. The Personal Insurance segment offers property and casualty insurance covering personal risks, primarily automobile and homeowners insurance to individuals. It distributes its products through independent agents, sponsoring organizations, joint marketing arrangements with other insurers, and direct marketing. The company was founded in 1853 and is based in New York, New York. Advisors' Opinion: [By Jon C. Ogg] The Travelers Companies Inc. (NYSE: TRV) is expected to rise by only 7.6% to $77.26 in 2013. That would represent a 52-week high but this one also has a yield of 2.6%. We would note that the street high target is actually all the way up at $87.00 and shares are currently very close to all-time highs. This insurance provider and financial services giant is not tied into healthcare so it has been immune to some of the ongoing risks. Travelers held up rather well in the recession but many investors do not even know it i one of the 30 DJIA components. [By Victor Mora] Travelers provides valuable insurance products and services to an increasing number of consumers and companies. However, a recent earnings report has investors in the company feeling a bit disappointed. The stock has been on a modest rise over the last several months, but is now seeing a slight pullback. Over most of the last four quarters, investors in the company have had mixed feelings about the stock, though earnings and revenue figures have been rising. Relative to its peers and sector, Travelers has been an average year-to-date performer. WAIT AND SEE what Travelers does this coming quarter. [By Victor Mora] Travelers provides valuable insurance products and services to an increasing number of consumers and companies looking to mitigate risk. The stock has been on a significant run over the last several years and is now trading at all-time high prices. Earnings and revenue have been increasing over most of the last four quarters which has kept investors upbeat. Relative to its strong peers and sector, Travelers has been an average year-to-date performer. Look for Travelers stock to OUTPERFORM. [By Dan Moskowitz] It would be difficult to find a significant negative for Travelers. One could argue that competition is increasing, but competition seems to be increasing in every industry due to unusual economic conditions. It’s difficult�to see the real long-term winners when times are good because everyone is winning. When times are more challenging, the true winners will remain strong. Travelers is likely to fit into that category. Top 10 Insurance Stocks To Buy Right Now: Prudential Financial Inc (PRH) Prudential Financial, Inc. (Prudential Financial) is a financial services company. Prudential Financial has operations in the United States, Asia, Europe and Latin America. Through its subsidiaries and affiliates, the Company offers an array of financial products and services, including life insurance, annuities, retirement-related services, mutual funds and investment management. It offers these products and services to individual and institutional customers through proprietary and third party distribution networks. Prudential Financial has two businesses: the Financial Services Businesses and the Closed Block Business. The Financial Services Businesses consists of its United States Retirement Solutions and Investment Management division, United States Individual Life and Group Insurance division, and International Insurance division, as well as its Corporate and Other operations. The Closed Block Business consists of the assets and related liabilities of the Closed Block described below and certain related assets and liabilities. On January 1, 2012, it merged with Gibraltar Life Insurance Company, Ltd (Gibraltar Life). On February 1, 2011, Prudential Financial completed the acquisition from American International Group, Inc. (AIG), of AIG Star Life Insurance Co., Ltd. (Star), AIG Edison Life Insurance Company (Edison), and certain other AIG subsidiaries. In July 2011, it sold its global commodities business to Jefferies Group, Inc. In November 2011, it acquired an office building located in downtown Chicago's Central Loop. On December 06, 2011, the Company announced the sale of Prudential Real Estate and Relocation Services (PRERS), the Company's real estate brokerage and relocation services unit, to Brookfield Residential Property Services. Financial Services Businesses The Financial Services Businesses consist of three operating divisions, which together encompass six segments, and its Corporate and Other operations. The United States Retirement Solutions an! d Investment Management division consists of its Individual Annuities, Retirement and Asset Management segments. The United States Individual Life and Group Insurance division consists of its Individual Life and Group Insurance segments. The International Insurance division consists of its International Insurance segment. Its Corporate and Other operations include corporate items and initiatives that are not allocated to business segments, as well as businesses that have been or will be divested. The Individual Annuities segment manufactures and distributes individual variable and fixed annuity products, primarily to the United States market. The Company�� annuity products are distributed through a diverse group of independent financial planners, wirehouses, banks, and insurance agents, including Prudential Agents and the agency distribution force of The Allstate Corporation (Allstate). It offers variable annuities that provide its customers with tax-deferred asset accumulation together with a base death benefit and a suite of optional guaranteed death and living benefits. Its variable annuity investment options provide the customers with the opportunity to invest in proprietary and non-proprietary mutual funds, frequently under asset allocation programs, and fixed-rate accounts. The Company�� prudential agents distribute variable annuities with proprietary and non-proprietary investment options, as well as fixed annuities. Its individual annuity products are also offered through a range of third party channels, including independent brokers, wirehouses, banks, and Allstate�� proprietary distribution force. The Company�� retirement segment, which is referred as Prudential Retirement, provides retirement investment and income products and services to retirement plan sponsors in the public, private, and not-for-profit sectors. Its full service business provides recordkeeping, plan administration, actuarial advisory services, tailored participant education and communicati! on servic! es, trustee services and institutional and retail investments. It services defined contribution, defined benefit and non-qualified plans. For participants leaving the clients��plans, it provides a range of rollover products through its broker-dealer, Prudential Investment Management Services LLC, its bank, Prudential Bank & Trust, FSB (PB&T), and certain of its insurance companies. Its institutional investment products business offers guaranteed investment contracts (GICs), funding agreements, institutional and retail notes, structured settlement annuities, and group annuities, for defined contribution plans, defined benefit plans, non-qualified plans, and individuals. The Company�� full service business offers plan sponsors and their participants a range of products and services to assist in the delivery and administration of defined contribution, defined benefit, and non-qualified plans, including recordkeeping and administrative services, comprehensive investment offerings and consulting services to assist plan sponsors in managing fiduciary obligations. As part of its investment products, it offers a range of general and separate account stable value products and other fee-based separate accounts, as well as retail mutual funds and institutional funds advised by affiliated and non-affiliated investment managers. It also offers fee-based separate account products, through which customer funds are held in a separate account, retail mutual funds, institutional funds, or a client-owned trust. These products generally pass all of the investment results to the customer. In addition, it offers guaranteed minimum withdrawal benefits associated with certain defined contribution accounts, and hedge certain of the related risks utilizing externally purchased hedging instruments. It also offers a range of rollover solutions, including individual retirement accounts, mutual funds, and guaranteed income products. Its rollover products and services are marketed to participants who ter! minate or! retire from organizations that are clients of its retirement plan recordkeeping services. The Asset Management segment provides an array of investment management and advisory services by means of institutional portfolio management, mutual funds, asset securitization activity and other structured products, and strategic investments. These products and services are provided to the public and private marketplace, as well as its United States Individual Life and Group Insurance division, International Insurance division and Individual Annuities and Retirement segments, as well as the Closed Block Business. Its products and services include Public Fixed Income Asset Management, Public Equity Asset Management, Private Fixed Income Asset Management, Commercial Mortgage Origination and Servicing, Real Estate Asset Management, Strategic Investments, and Mutual Funds and Other Retail Services. The public fixed income organization manages fixed income portfolios for United States and international, institutional and retail clients, as well as for its general account. Its products include traditional broad market fixed income strategies and single-sector strategies. It manages traditional asset-liability strategies, as well as customized asset-liability strategies. It also manages hedge strategies, as well as collateralized loan obligations. It also serves as a non-custodial securities lending agent. The public equity organization provides discretionary and non-discretionary asset management services to a range of clients. It manages an array of publicly-traded equity asset classes using various investment styles. The public equity organization is consisted of two wholly owned registered investment advisors, Jennison Associates LLC and Quantitative Management Associates LLC. The private fixed income organization provides asset management services by investing in private placement investment grade debt, private placement below investment grade debt, and mezzanine debt securi! ties. The! se investment capabilities are utilized by its general account and institutional clients through direct advisory accounts, insurance company separate accounts, and private fund structures. The commercial mortgage operations provide mortgage origination, asset management and servicing for its general account, institutional clients, and government-sponsored entities, such as Fannie Mae, the Federal Housing Administration, and Freddie Mac. It also originated shorter-term interim loans for spread lending that are collateralized by assets generally under renovation or lease up The global real estate organization provides asset management services for single-client and commingled private and public real estate portfolios and manufactures and manages a range of real estate investment vehicles investing in private and public real estate, primarily for institutional clients through 22 offices worldwide. Its domestic and international real estate investment vehicles range from fully diversified open-end funds to specialized closed-end funds that invest in specific types of properties or specific geographic regions or follow other specific investment strategies. The Company makes strategic investments to support the creation and management of funds offered to third-party investors in private and public real estate, fixed income and public equities asset classes. Other strategic investments are made with the intention to sell or syndicate to investors, including its general account, or for placement in funds and structured products that it offers and manages. It also makes loans to, and guarantees obligations of, the Company�� managed funds that are secured by equity commitments from investors or assets of the funds. The Company manufactures, distributes and services investment management products primarily utilizing asset management expertise in the United States retail market. Its products are designed to be sold primarily by financial professionals, including both Prudential Agents an! d third p! arty advisors. It offers a family of retail investment products consisting of 41 mutual funds as of December 31, 2011. These products cover an array of investment styles and objectives designed to retain assets of individuals with varying objectives and to accommodate investors��changing financial needs. In addition, it offers banks and other financial services organizations a wealth management platform, which permits, such banks and organizations to provide their retail clients with services, including asset allocation, investment manager research and access, clearing, trading services, and performance reporting. The U.S. Individual Life and Group Insurance division conducts its business through the Individual Life and Group Insurance segments. Its Individual Life segment manufactures and distributes individual variable life, term life and universal life insurance products primarily to the U.S. mass middle, mass affluent and affluent markets. During 2011, its primary insurance products are variable life, term life and universal life and represent 41%, 49% and 9%, respectively, of its face amount of individual life insurance in force, net of reinsurance. The Group Insurance segment manufactures and distributes a range of group life, long-term and short-term group disability, long-term care, and group corporate-, bank- and trust-owned life insurance in the United States primarily to institutional clients for use in connection with employee and membership benefits plans. Group Insurance also sells accidental death and dismemberment, preferred provider and indemnity dental and other ancillary coverages, and provides plan administrative services in connection with its insurance coverages. It offers group life insurance products, including employer-pay (basic) and employee-pay (voluntary) coverages. This portfolio of products includes basic and supplemental term life insurance for employees, optional term life insurance for dependents of employees and group universal life insurance. It also of! fers grou! p variable universal life insurance, basic and voluntary accidental death and dismemberment insurance and business travel accident insurance. It also offers a living benefits option that allows insureds that are diagnosed with a terminal illness to receive a portion of their life insurance benefit upon diagnosis, in advance of death, to use as needed. The Company�� International Insurance segment manufactures and distributes individual life insurance, retirement and related products, including certain health products with fixed benefits. It provides these products to the broad middle income market across Japan through multiple distribution channels, including Life Advisors, who are associated with its Gibraltar Life operations. It also provides similar products to the mass affluent and affluent markets in Japan, Korea and other countries outside the United States through its Life Planner operations. It also offers variable life products in Japan, Korea, Taiwan and Poland and interest-sensitive life products in all countries with the exception of Brazil and Mexico. In most of its operations, it also offers certain health products with fixed benefits, some of which include a high savings element. In addition, similar products are offered to the middle income market across Japan through Life Advisors, the distribution channel of the Company�� Gibraltar Life Insurance Company, Ltd. (Gibraltar Life) operation. The Company�� international insurance operations offer various traditional whole life, term life, endowment policies, which provide for payment on the earlier of death or maturity and retirement income life insurance products that combine an insurance protection element similar to that of term life policies with a retirement income feature. It also offers variable life products in Japan, Korea, Taiwan and Poland and interest-sensitive life products in all countries. It also offers certain health products with fixed benefits, as well as annuity products, which are primari! ly repres! ented by United States and Australian dollar-denominated fixed annuities in its Gibraltar Life operations. Closed Block Business The Closed Block Business includes liabilities for its individual in participating products, together with assets that are used for the payment of benefits and policyholder dividends, expenses and taxes with respect to these products. The Closed Block is 90% reinsured, including 7% by a wholly owned subsidiary of Prudential Financial. During 2011, the Company also reinsured 90% of the short-term risks associated with the Closed Block policies to a wholly owned subsidiary of Prudential Financial. Top 10 Insurance Stocks To Buy Right Now: Prudential Financial Inc.(PRU) Prudential Financial, Inc., through its subsidiaries, offers various financial products and services in the United States, Asia, Europe, and Latin America. The company operates through three divisions: The U.S. Retirement Solutions and Investment Management, The U.S. Individual Life and Group Insurance, and The International Insurance and Investments. The U.S. Retirement Solutions and Investment Management division provides individual variable and fixed annuity products, as well as offers retirement investment and income products and services to retirement plan sponsors in the public, private, and not-for-profit sectors. This division also provides investment management and advisory services to the public and private marketplace. The U.S. Individual Life and Group Insurance division offers individual variable life, term life, and universal life insurance products; and group life, long-term and short-term group disability, long-term care, and group corporate-, bank-and trus t-owned life insurance products to institutional clients. This division also sells accidental death and dismemberment, and other ancillary coverages, as well as provides plan administrative services; and offers preferred provider and indemnity dental coverage plans to clients. The International Insurance and Investments division provides international individual life insurance products in Japan, Korea, and other foreign countries; and offers proprietary and non-proprietary asset management, investment advice, and services to retail and institutional clients internationally. In addition, the company engages in real estate brokerage franchise business, which involves marketing its franchises to the real estate companies. Further, it provides institutional clients and government agencies with various services in connection with the relocation of their employees. Prudential Financial, Inc. was founded in 1875 and is headquartered in Newark, New Jersey. Advisors' Opinion: [By Matthew Scott] Retiring Baby Boomers could make Prudential Financial (NYSE: PRU) a strong performer for years to come. Insurance products like its line of guaranteed income annuities have given it an edge over rivals and it continues to make inroads into other areas of investing. Prudential’s stock price increased more than five times over the last two years, jumping from $11.20 on March 9, 2009 to $61.58 at the end of the first quarter. [By Victor Mora] Prudential Financial is a financial services company that provides�life insurance, annuities, retirement-related services, mutual funds and investment management. The company is attempting to fight the designation as a “systematically important financial institution” as it comes with increased regulation. The stock has been trending higher and looks to continue this path. Over the last four quarters, earnings have been decreasing while revenue figures have been improving which has produced mixed feelings among investors. Relative to its strong peers and sector, Prudential Financial has been an average year-to-date performer. Look for Prudential Financial to continue to OUTPERFORM. Top 10 Insurance Stocks To Buy Right Now: Principal Financial Group Inc(PFG) Principal Financial Group, Inc. provides retirement savings, investment, and insurance products and services worldwide. The company?s Retirement and Investor Services segment provides retirement savings and related investment products and services, including a portfolio of asset accumulation products and services primarily to small and medium-sized businesses and individuals in the United States. This segment offers products and services to businesses for defined contribution pension plans, including 401(k) and 403(b) plans, defined benefit pension plans, nonqualified executive benefit plans, and employee stock ownership plan consulting services; and annuities, mutual funds, and bank products and services to the employees of its business customers and other individuals. Principal Financial Group?s Principal Global Investors segment offers a range of equity, fixed income, and real estate investments, as well as specialized overlay and advisory services to institutional inve stors. The company?s Principal International segment offers retirement products and services, annuities, mutual funds, institutional asset management, and life insurance accumulation products in Brazil, Chile, China, Hong Kong SAR, India, Indonesia, Malaysia, Mexico, Singapore, and Thailand. Principal Financial Group?s U.S. Insurance Solutions segment offers individual life insurance, as well as specialty benefits in the United States. Its individual life insurance products include universal and variable universal life insurance and traditional life insurance; and specialty benefit products comprise group dental and vision insurance, individual and group disability insurance, and group life insurance, as well as fee-for-service claims administration and wellness services. The company was founded in 1879 and is based in Des Moines, Iowa. Advisors' Opinion: [By Goldman] Principal Financial(PFG) is an insurance and investment management company. Principal is due to release fourth-quarter results today. It has an average earnings surprise average of 4.8% and moves 4%, both up and down, in reaction to earnings announcements. Principal's stock has soared 50% in the past 12 months, easily outpacing indices, and 13% in the past three months. Consequently, it has passed many of analysts' price targets. Goldman is still bullish, but predicts just 7% of remaining upside in the next 12 months. Principal receives "buy" ratings from just 26% of researchers evaluating its stock. But, it is still notably undervalued relative to its peer group. The stock trades at a forward earnings multiple of less than 12, a book value multiple of 1.2 and a cash flow multiple of 4.5, 21%, 70% and 71% industry discounts. The stock pays an annual dividend, which fluctuates depending upon operating results. This year's 55 cent annual payout translated to a 2% yield on payment. Top 10 Insurance Stocks To Buy Right Now: Berkshire Hathaway Inc (BRKA) Berkshire Hathaway Inc. (Berkshire) is a holding company owning subsidiaries engaged in a number of diverse business activities. The Company is engaged in insurance businesses conducted on both a primary basis and a reinsurance basis. Berkshire also owns and operates a number of other businesses engaged in a variety of activities. On December 30, 2011, Medical Protective Corporation (MedPro) completed the acquisition of 100% of the Princeton Insurance Company, a professional liability insurer for healthcare providers based in Princeton, New Jersey. During the year ended December 31, 2011, Acme Building Brands (Acme) acquired the assets of Jenkins Brick Company, the brick manufacturer in Alabama. In September 2011, Berkshire acquired The Lubrizol Corporation (Lubrizol). In June 2011, the Company acquired Wesco Financial Corporation. In June 2012, Media General, Inc. sold 63 daily and weekly newspapers to World Media Enterprises, Inc., a subsidiary of Berkshire. In July 2012, Berkshire�� The Lubrizol Corporation acquired Lipotec SA. Insurance and Reinsurance Businesses Berkshire�� insurance and reinsurance business activities are conducted through numerous domestic and foreign-based insurance entities. Berkshire�� insurance businesses provide insurance and reinsurance of property and casualty risks world-wide and also reinsure life, accident and health risks world-wide. Berkshire�� insurance underwriting operations are consisted of the sub-groups, including GEICO and its subsidiaries, General Re and its subsidiaries, Berkshire Hathaway Reinsurance Group and Berkshire Hathaway Primary Group. GEICO insurance subsidiaries include Government Employees Insurance Company, GEICO General Insurance Company, GEICO Indemnity Company and GEICO Casualty Company. These companies primarily offers private passenger automobile insurance to individuals in all 50 states and the District of Columbia. In addition, GEICO insures motorcycles, all-terrain vehicles, recreational vehicles and s! mall commercial fleets and acts as an agent for other insurers who offer homeowners, boat and life insurance to individuals. GEICO markets its policies primarily through direct response methods in which applications for insurance are submitted directly to the companies through the Internet or by telephone. General Re Corporation (General Re) is the holding company of General Reinsurance Corporation (GRC) and its subsidiaries and affiliates. GRC�� subsidiaries include General Reinsurance AG, a international reinsurer based in Germany. General Re subsidiaries conduct business activities globally in 51 cities and provide insurance and reinsurance coverages throughout the world. General Re provides property/casualty insurance and reinsurance, life/health reinsurance and other reinsurance intermediary and risk management, underwriting management and investment management services. Property/Casualty Reinsurance General Re�� property/casualty reinsurance business in North America is conducted through GRC. Property/casualty operations in North America are also conducted through 16 branch offices in the United States and Canada. Reinsurance activities are marketed directly to clients without involving a broker or intermediary. General Re�� property/casualty business in North America also includes specialty insurers (primarily the General Star and Genesis companies domiciled in Connecticut and Ohio). These specialty insurers underwrite primarily liability and workers��compensation coverages on an excess and surplus basis and excess insurance for self-insured programs. General Re�� international property/casualty reinsurance business operations are conducted through internationally-based subsidiaries on a direct basis (through General Reinsurance AG, as well as several other General Re subsidiaries in 25 countries) and through brokers (primarily through Faraday, which owns the managing agent of Syndicate 435 at Lloyd�� of London and provides capacity and particip! ates in 1! 00% of the results of Syndicate 435). Life/Health Reinsurance General Re�� North American and international life, health, long-term care and disability reinsurance coverages are written on an individual and group basis. Most of this business is written on a proportional treaty basis, with the exception of the United States group health and disability business which is predominately written on an excess treaty basis. Lesser amounts of life and disability business are written on a facultative basis. The life/health business is marketed on a direct basis. The Berkshire Hathaway Reinsurance Group (BHRG) operates from offices located in Stamford, Connecticut. Business activities are conducted through a group of subsidiary companies, led by National Indemnity Company (NICO) and Columbia Insurance Company (Columbia). BHRG provides principally excess and quota-share reinsurance to other property and casualty insurers and reinsurers. BHRG�� underwriting activities also include life reinsurance and life annuity business written through Berkshire Hathaway Life Insurance Company of Nebraska and financial guaranty insurance written through Berkshire Hathaway Assurance Corporation. BHRG writes catastrophe excess-of-loss treaty reinsurance contracts. BHRG also writes individual policies for primarily large or otherwise unusual discrete risks on both an excess direct and facultative reinsurance basis, referred to as individual risk, which includes policies covering terrorism, natural catastrophe and aviation risks. A catastrophe excess policy provides protection to the counterparty from the accumulation of primarily property losses arising from a single loss event or series of related events. Catastrophe and individual risk policies may provide amounts of indemnification per contract and a single loss event may produce losses under a number of contracts. BHRG also underwrites traditional non-catastrophe insurance and reinsurance coverages, referred to as multi-line property/c! asualty b! usiness. The Berkshire Hathaway Primary Group is a collection of primary insurance operations that provide a variety of insurance coverages to insureds located principally in the United States. NICO and certain affiliates underwrite motor vehicle and general liability insurance to commercial enterprises on both an admitted and excess and surplus basis. This business is written nationwide primarily through insurance agents and brokers and is based in Omaha, Nebraska. U.S. Investment Corporation (USIC), through its three subsidiaries led by United States Liability Insurance Company, is a specialty insurer that underwrites commercial, professional and personal lines of insurance on an admitted and excess and surplus basis. Policies are marketed in all 50 states and the District of Columbia through wholesale and retail insurance agents. USIC companies underwrite and market 109 distinct specialty property and casualty insurance products. Medical Protective Corporation (MedPro) is based in Fort Wayne, Indiana. Through its subsidiary, the Medical Protective Company, MedPro is engaged in primary medical professional liability coverage and risk solutions to physicians, dentists, other healthcare providers and healthcare facilities. Railroad Business Through BNSF Railway, BNSF operates a railroad network in North America with approximately 32,000 route miles of track (excluding multiple main tracks, yard tracks and sidings) in 28 states and two Canadian provinces as of December 31, 2011. BNSF owns approximately 23,000 route miles, including easements, and operates on approximately 9,000 route miles of trackage rights that permit BNSF to operate its trains with its crews over other railroads��tracks. As of December 31, 2011, the total BNSF Railway system, including single and multiple main tracks, yard tracks and sidings, consisted of approximately 50,000 operated miles of track, all of which are owned by or held under easement by BNSF except for approximately 10,000 route! miles op! erated under trackage rights. BNSF is based in Fort Worth, Texas, and through BNSF Railway Company operates railroad systems in North America. In serving the Midwest, Pacific Northwest, Western, Southwestern and Southeastern regions and ports of the country, BNSF transports a range of products and commodities derived from manufacturing, agricultural and natural resource industries. In serving the Midwest, Pacific Northwest, Western, Southwestern and Southeastern regions and ports of the country, BNSF transports a range of products and commodities derived from manufacturing, agricultural and natural resource industries. Over half of the freight revenues of BNSF are covered by contractual agreements of varying durations. BNSF�� primary routes, including trackage rights, allow it to access cities and ports in the western and southern United States as well as parts of Canada and Mexico. In addition to cities and ports, BNSF efficiently serves many smaller markets by working closely with approximately 200 shortline partners. BNSF has also entered into marketing agreements with other rail carriers, expanding the marketing reach for each railroad and their customers. Utilities and Energy Businesses MidAmerican�� businesses are managed as separate operating units. MidAmerican�� domestic regulated energy interests are comprised of two regulated utility companies serving more than three million retail customers and two interstate natural gas pipeline companies with approximately 16,600 miles of pipeline and a design capacity of approximately 7.7 billion cubic feet of natural gas per day. Its United Kingdom electricity distribution subsidiaries serve about 3.9 million electricity end-users. In addition, MidAmerican�� interests include a diversified portfolio of domestic independent power projects, a hydroelectric facility in the Philippines and residential real estate brokerage firm in the United States. PacifiCorp is a regulated electric utility compa! ny headqu! artered in Oregon, serving regulated retail electric customers in portions of Utah, Oregon, Wyoming, Washington, Idaho and California. The combined service territory�� diverse regional economy ranges from rural, agricultural and mining areas to urban, manufacturing and government service centers. As a vertically integrated electric utility, PacifiCorp owns approximately 10,600 net megawatts of generation capacity. MidAmerican Energy Company (MEC) is a regulated electric and natural gas utility company headquartered in Iowa, serving regulated retail electric and natural gas customers primarily in Iowa and also in portions of Illinois, South Dakota and Nebraska. MEC has a diverse customer base consisting of residential, agricultural and a variety of commercial and industrial customer groups. In addition to retail sales and natural gas transportation, MEC sells regulated electricity to markets operated by regional transmission organizations and regulated electricity and natural gas to other utilities and market participants on a wholesale basis and sells non-regulated electricity and natural gas services in deregulated markets. As a vertically integrated electric and gas utility, MEC owns approximately 7,000 net megawatts of generation capacity. The natural gas pipelines consist of Northern Natural Gas Company (Northern Natural) and Kern River Gas Transmission Company (Kern River). Northern Natural is based in Nebraska and owns interstate natural gas pipeline systems in the United States reaching from southern Texas to Michigan�� Upper Peninsula. Northern Natural�� pipeline system consists of approximately 14,900 miles of natural gas pipelines. Northern Natural has access to supplies from mid-continent basin and provides transportation services to utilities and numerous other customers. Northern Natural also operates three underground natural gas storage facilities and two liquefied natural gas storage peaking units. Kern River is based in Utah and owns an interstate natural! gas pipe! line system that consists of approximately 1,700 miles and extends from the supply areas in the Rocky Mountains to consuming markets in Utah, Nevada and California. Kern River transports natural gas for electric utilities and natural gas distribution utilities, oil and natural gas companies or affiliates of such companies, electricity generating companies, energy marketing and trading companies, and financial institutions. The United Kingdom utilities consist of Northern Powergrid (Northeast) Limited (Northern Powergrid (Northeast)) and Northern Powergrid (Yorkshire) plc (Northern Powergrid (Yorkshire)), which own a substantial United Kingdom electricity distribution network that delivers electricity to end-users in northeast England in an area covering approximately 10,000 square miles. The distribution companies primarily charge supply companies regulated tariffs for the use of electrical infrastructure. MidAmerican also owns HomeServices of America, Inc. (HomeServices), a full-service residential real estate brokerage firm in the United States. HomeServices also offers integrated real estate services, including mortgage originations through a joint venture, title and closing services, property and casualty insurance, home warranties, relocation services and other home-related services. It operates under 22 residential real estate brand names with over 14,000 sales associates and in nearly 300 brokerage offices in 20 states. Manufacturing, Service and Retailing Businesses Berkshire�� numerous and diverse manufacturing, service and retailing businesses. Marmon consists of approximately 140 manufacturing and service businesses that operate independently within eleven diverse, stand-alone business sectors. These sectors are Building Wire, Crane Services, Distribution Services, Engineered Wire and Cable, Flow Products, Food Service Equipment, Highway Technologies, Industrial Products, Retail Store Fixtures, Transportation Services and Engineered Products and Water Treatment. ! Building Wire, providing copper electrical building wire for residential, commercial and industrial construction. Crane Services provides the leasing and operation of mobile cranes primarily to the energy, mining and petrochemical markets. Distribution Services, supplying specialty metal pipe and tubing, bar and sheet products to markets including construction, industrial, aerospace and many others. Engineered Wire & Cable, providing electrical and electronic wire and cable for energy related markets and other industries. Flow Products is producing copper tube for the plumbing, heating, ventilation, and air conditioning (HVAC), refrigeration, and industrial markets. Food Service Equipment is supplying commercial food preparation equipment for restaurants and shopping carts for retail stores. Highway Technologies, primarily serving the heavy-duty highway transportation industry with trailers, fifth wheel coupling devices and undercarriage products such as brake parts and suspension systems, and also serving the light vehicle aftermarket with clutches and related products. Industrial Products, consisting of metal fasteners for the building, furniture, cabinetry, industrial and other markets, gloves for industrial markets, portable lighting equipment for mining and safety markets, overhead electrification equipment for mass transit systems, custom-machined brass, aluminum and copper forgings for the construction, valve and other industries, brass fittings and valves for commercial and industrial applications, and drawn aluminum tubing and extruded aluminum shapes for the construction, automotive, appliance, medical and other markets . Retail Store Fixtures, providing shelving and other merchandising displays and related services for retail stores worldwide. Transportation Services & Engineered Products, including manufacturing, leasing and maintenance of railroad tank cars, leasing of intermodal tank containers, in-plant rail services, manufacturing of bi-modal railcar movers, wheel, axle ! and gear ! sets for light rail transit and gear products for locomotives, manufacturing of steel tank heads, and services, equipment and technology for processing and distributing sulfur. Water Treatment, equipment including residential water softening, purification and refrigeration filtration systems, treatment systems for industrial markets including power generation, oil and gas, chemical, and pulp and paper, gear drives for irrigation systems and cooling towers, and air-cooled heat exchangers. Marmon operates approximately 300 manufacturing, distribution and service facilities that are primarily located in North America, Europe and China, and employs more than 16,000 people worldwide. McLane Company, Inc. (McLane) provides wholesale distribution and logistics services in all 50 states and internationally in Brazil to customers that include discount retailers, convenience stores, wholesale clubs, quick service restaurants, drug stores and military bases. Operations are divided into five business units: grocery distribution, foodservice distribution, beverage distribution, international logistics and software development. McLane�� foodservice distribution unit, based in Carrollton, Texas, focuses on serving the quick service restaurant industry. Operations are conducted through 18 facilities in 16 states. The foodservice distribution unit services more than 20,000 chain restaurants nationwide. Other Manufacturing, Other Service and Retailing Businesses Berkshire�� apparel manufacturing businesses include manufacturers of a variety of clothing and footwear. Businesses engaged in the manufacture and distribution of clothing products include Fruit of the Loom, Inc. (Fruit), Russell Brands, LLC (Russell), Vanity Fair Brands, LP (VFB), Garan and Fechheimer Brothers. Berkshire�� footwear businesses include H.H. Brown Shoe Group, Justin Brands and Brooks Athletic. Fruit, Russell and VFB (together FOL) is primarily a vertically integrated manufacturer and distributor of ba! sic appar! el, underwear and athletic apparel and products. Products, under the Fruit of the Loomand JERZEES labels are primarily sold in the mass merchandise and wholesale markets. In the VFB product line, Vassarette, Bestformand Curvationare sold in the mass merchandise market, while Vanity Fairand Lily of Franceproducts are sold in the mid-tier chains and department stores. FOL also markets and sells athletic uniforms, apparel, sports equipment and balls to team dealers; college licensed tee shirts and fleecewear to college bookstores and mid-tier merchants; and athletic apparel, sports equipment and balls to sporting goods retailers under the Russell Athleticand Spaldingbrands. Additionally, Spaldingmarkets and sells balls in the mass merchandise market and dollar store channel. During the year ended December, 31, 2011, approximately 30% of FOL�� sales were to Wal-Mart. FOL generally performs its own spinning, knitting, cloth finishing, cutting, sewing and packaging. Garan designs, manufactures, imports and sells apparel primarily for children, including boys, girls, toddlers and infants. Products are sold under its own trademark Garanimalsand private labels of its customers. Garan also licenses its registered trademark Garanimalsto independent third parties. Garan conducts its business through operating subsidiaries located in the United States, Central America and Asia. Substantially all of Garan�� products are sold through its distribution centers in the United States to national chain stores, department stores and specialty stores. In 2011, over 90% of Garan�� sales were to Wal-Mart. Fechheimer Brothers manufactures, distributes and sells uniforms, principally for the public service and safety markets, including police, fire, postal and military markets. Fechheimer Brothers is based in Cincinnati, Ohio. Justin Brands and H.H. Brown Shoe Group manufacture and distribute work, rugged outdoor and casual shoes and western-style footwear under a number of brand names, including! Justin, ! Tony Lama, Nocona, Chippewas, Born, Sofft, Carolina, Double-H Boots, Corcoran, Matterhornand Kork-Ease. Brooks Athletic markets and sells running footwear to specialty retailers under Brooksbrand. In 2011, Brooksachieved #1 market share in footwear with specialty retailers. A volume of the shoes sold by Berkshire�� shoe businesses are manufactured or purchased from sources outside the United States. Products are principally sold in the United States through a variety of channels including department stores, footwear chains, specialty stores, catalogs and the Internet, as well as through Company-owned retail stores. Acme manufactures and distributes clay bricks (Acme Brickand Jenkins Brick), concrete block (Featherlite) and cut limestone (Texas Quarries). In addition, Acme distributes a number of other building products of other manufacturers, including glass block, floor and wall tile and other masonry products. Acme also sells ceramic floor and wall tile, as well as marble, granite and other stones through its subsidiary, American Tile and Stone. Products are sold primarily in the South Central and South Eastern United States through Company-operated sales offices. Acme distributes products primarily to homebuilders and masonry and general contractors. Benjamin Moore & Co. (Benjamin Moore) is a formulator, manufacturer and retailer of a range of architectural coatings, available principally in the United States and Canada. Products include water-thinnable and solvent-thinnable general purpose coatings (paints, stains and clear finishes) for use by the general public, contractors and industrial and commercial users. Products are marketed under various registered brand names, including Regal, Superspec, Moorcraft, Moorgard, Aura, Nattura, ben, Coronado Paint, Insl-xand Lenmar. Benjamin Moore and its manufacturing subsidiaries rely primarily on an independent dealer network for the distribution of its products. Its distribution network includes approximately 100! Company-! owned stores as well as over 4,500 third party retailers representing over 10,300 storefronts in the United States and Canada. Benjamin Moore�� Company-owned stores represent several multiple-outlet and stand-alone retailers in various parts of the United States and Canada serving primarily contractors and general consumers. The independent retailer channel offers an array of products including Benjamin Mooreand Insl-xbrands and other competitor coatings, wallcoverings, window treatments and sundries. Benjamin Moore also has three color stations located in regional malls that serve as brand marketing tools. In addition to the independent retailer channel, Benjamin Moore has recently begun to sell direct to the consumer through e-commerce sites and its customer care program, which includes national accounts and government agencies. Johns Manville (JM) is a manufacturer and marketer of products for building insulation, mechanical insulation, commercial roofing and roof insulation, as well as fibers and nonwovens for commercial, industrial and residential applications. JM serves markets that include aerospace, automotive and transportation, air handling, appliance, HVAC, pipe and equipment filtration, waterproofing, building, flooring, interiors and wind energy. Fiber glass is the basic material in a majority of JM�� products, although JM also manufactures a portion of its products with other materials to satisfy the broader needs of its customers. JM regards its patents and licenses as valuable, however it does not consider any of its businesses to be materially dependent on any single patent or license. JM is headquartered in Denver, Colorado, and operates 40 manufacturing facilities in North America, Europe and China and conducts research and development at several other facilities. JM sells its products through a variety of channels, including contractors, distributors, retailers, manufacturers and fabricators. MiTek is a provider of engineered connector products, engine! ering sof! tware and services and computer-driven manufacturing machinery to the truss fabrication segment of the building components industry. Primary customers are truss fabricators who manufacture pre-fabricated roof and floor trusses and wall panels for the residential building market, as well as the light commercial and institutional construction industry. MiTek also participates in the light gauge steel framing market under the Ultra-Spanname, manufactures and markets assembly line machinery used by the lead acid battery industry, manufactures and markets a line of masonry connector products and manufactures and markets air handling systems used in commercial building. MiTek operates on six continents with sales into approximately 90 countries. MiTek has 34 manufacturing facilities located in eleven countries and 45 sales/engineering offices located in 17 countries. The Shaw Industries Group, Inc. (Shaw) is a carpet manufacturer based on both revenue and volume of production. Shaw designs and manufactures over 3,000 styles of tufted carpet, tufted and woven rugs, laminate and wood flooring for residential and commercial use under about 30 brand and trade names and under certain private labels. Shaw also provides installation services and sells ceramic and vinyl tile along with sheet vinyl. Shaw�� manufacturing operations are fully integrated from the processing of raw materials used to make fiber through the finishing of carpet. Shaw�� carpet, rugs and hard surface products are sold in a broad range of prices, patterns, colors and textures. Shaw products are sold wholesale to over 40,000 retailers, distributors and commercial users throughout the United States, Canada and Mexico and are also exported to various overseas markets. Shaw�� wholesale products are marketed domestically by over 2,000 salaried and commissioned sales personnel directly to retailers and distributors and to national accounts. Shaw�� 10 carpet full-service distribution facilities, three hard surface an! d two rug! full-service distribution facilities and 24 redistribution centers, along with centralized management information systems, enable it to provide prompt efficient delivery of its products to both its retail customers and wholesale distributors. Berkshire acquired an 80% interest in IMC International Metalworking Companies B.V. (IMC B.V.). Through its subsidiaries, IMC B.V. is a multinational manufacturers of consumable precision carbide metal cutting tools for applications in a range of industrial end markets under the brand names ISCAR, TaeguTec, Ingersoll, Tungaloy, Unitac, UOP It.te.diand Outiltec. IMC B.V.�� manufacturing facilities are located in Israel, United States, Germany, Italy, France, Switzerland, South Korea, China, India, Japan and Brazil. IMC B.V. has five primary product lines: milling tools, gripping tools, turning/thread tools, drilling tools and tooling. Forest River, Inc. (Forest River) is a manufacturer of recreational vehicles, utility, cargo and office trailers, buses and pontoon boats, headquartered in Elkhart, Indiana. Its products are sold in the United States and Canada through an independent dealer network. Scott Fetzer companies are a diversified group of 20 businesses that manufacture and distribute a variety of products for residential, industrial and institutional use. The two of these businesses are Kirby home cleaning systems and Campbell Hausfeld products. Albecca Inc. (Albecca), headquartered in Norcross, Georgia, does business primarily under the Larson-Juhlname. Albecca designs, manufactures and distributes a complete line of branded custom framing products, including wood and metal moulding, matboard, foamboard, glass, equipment and other framing supplies in the United States, Canada and 15 countries outside of North America. CTB International Corp. is a designer, manufacturer and marketer of systems used in the grain industry and in the production of poultry, hogs and eggs. Lubrizol is a specialty chemical company that pro! duces and! supplies technologies for the global transportation, industrial and consumer markets. Lubrizol operates two business sectors: Lubrizol Additives, which includes engine, driveline and industrial additive products and Lubrizol Advanced Materials, which includes personal and home care, engineered polymer and performance coating products. FlightSafety International Inc.(FlightSafety) is engaged primarily in the business of providing high technology training to operators of aircraft. FlightSafety�� training activities include advanced training for pilots of business and commercial aircraft; aircrew training for military and other government personnel; aircraft maintenance technician training; flight attendant and aircraft dispatcher training, and ab-initio (primary) pilot training to qualify individuals for private and commercial pilots��licenses. FlightSafety also develops classroom instructional systems and materials for use in its training business and for sale to others. NetJets Inc. (NJ) is a provider of fractional ownership programs for general aviation aircraft. TTI, Inc. (TTI) is a global specialty distributor of passive, interconnect, electromechanical and discrete components used by customers in the manufacturing and assembling of electronic products. Business Wire provides electronic dissemination of full-text news releases daily to the media, online services and databases and the global investment community in 150 countries and 45 languages. Berkshire�� retailing businesses principally consist of several independently managed home furnishings and jewelry operations. The home furnishings businesses are the Nebraska Furniture Mart (NFM), R.C. Willey Home Furnishings (R.C. Willey), Star Furniture Company (Star) and Jordan�� Furniture, Inc. (Jordan��). NFM, R.C. Willey, Star and Jordan�� each offer a wide selection of furniture, bedding and accessories. In addition, NFM and R.C. Willey sell a line of household appliances, electronics, computers and other home furnishings. N! FM, R.C. ! Willey, Star and Jordan�� also offer customer financing to complement their retail operations. An important feature of each of these businesses is their ability to control costs and to produce high business volume by offering value to their customers. NFM operates its business from two retail complexes with almost one million square feet of retail space and sizable warehouse and administrative facilities in Omaha, Nebraska and Kansas City, Kansas. NFM is a furniture retailer in each of its markets. NFM also owns Homemakers Furniture located in Des Moines, Iowa, which has approximately 215,000 square feet of retail space. R.C. Willey, based in Salt Lake City, Utah, is a home furnishings retailer in the Intermountain West region of the United States. R.C. Willey operates 11 retail stores, two retail clearance facilities and three distribution centers. Borsheim Jewelry Company, Inc. (Borsheims) operates from a single store located in Omaha, Nebraska. Borsheims is a high volume retailer of jewelry, watches, crystal, china, stemware, flatware, gifts and collectibles. Helzberg�� Diamond Shops, Inc. (Helzberg), based in North Kansas City, Missouri, operates a chain of 233 retail jewelry stores in 37 states, which includes approximately 550,000 square feet of retail space. Most of Helzberg�� stores are located in malls, lifestyle centers or power strip centers, and all stores operate under the name Helzberg Diamonds. The Ben Bridge Corporation (Ben Bridge Jeweler), based in Seattle, Washington, operates a chain of 70 upscale retail jewelry stores located in 11 states that are primarily in the Western United States. Three of its locations are concept stores that sell only PANDORA jewelry. Finance and Financial Products Clayton Homes, Inc. (Clayton) is a vertically integrated manufactured housing company. At December 31, 2011, Clayton operated 33 manufacturing plants in 12 states. Clayton�� homes are marketed in 48 states through a network of 1,333 retailers, inclu! ding 333 ! Company-owned home centers. Financing is offered through its finance subsidiaries to purchasers of Clayton�� manufactured homes as well as those purchasing homes from selected independent retailers. XTRA Corporation (XTRA), headquartered in St. Louis, Missouri, is a transportation equipment lessor operating under the XTRA Leasebrand name. XTRA manages a diverse fleet of approximately 83,000 units located at 63 facilities throughout the United States and two facilities in Canada. The fleet includes over-the-road and storage traile Advisors' Opinion: [By Victor Mora] Berkshire Hathaway is a well-regarded investment manager that has been led by Warren Buffett to great successes. The stock has risen consistently over the last several years and is now trading at all-time high prices. Earnings and revenue have shown steady growth, over the last four quarters, which has really pleased investors. Relative to its peers and sector, Berkshire Hathaway has been a year-to-date performance leader. Look for Berkshire Hathaway to OUTPERFORM. Subscribe to: Posts (Atom) Blog Archive ►  2019 (37) ►  March (19) ►  February (18) ►  2018 (20) ►  August (2) ►  July (7) ►  June (3) ►  May (8) ►  2016 (1) ►  November (1) ►  2015 (119) ►  July (5) ►  June (17) ►  May (14) ►  April (21) ►  March (19) ►  February (19) ►  January (24) ►  2014 (330) ►  December (23) ►  November (24) ►  October (36) ►  September (35) ►  August (32) ►  July (42) ►  June (35) ►  May (23) ►  April (26) ►  March (24) ►  February (10) ►  January (20) ▼  2013 (118) ►  December (22) ►  November (19) ►  October (23) ▼  September (18) Stocks weak as U.S. shutdown looms Is the IPO Market Overheating? Fed Strategy from Mohammed Ali Regeneron Pharmaceuticals Inc (REGN): Well Positio... Insiders Are Buying Morguard North American Reside... The Best Stock Under $10? Facebook: Worth More Than Intel? 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