Friday, May 31, 2013

Can Its New CEO Lead Chesapeake to Greatness?

After months of searching, Chesapeake Energy (NYSE: CHK  ) has found a new CEO. The company's board announced on Monday that Robert Douglas ("Doug") Lawler, senior vice president of Anadarko Petroleum's (NYSE: APC  ) successful international and deepwater business, will be replacing Aubrey McClendon, who stepped down as chief executive last month.

New CEO's background
Lawler is a petroleum engineer with 25 years of experience in the upstream industry. He has served in increasingly senior leadership roles at Anadarko and has expertise in asset development, operations management, and engineering as well as in corporate and strategic planning.

Prior to joining Chesapeake, Lawler was most recently involved in Anadarko's efforts to develop a liquefied natural gas export facility from a gas field off the coast of Mozambique. He also has extensive experience with shale oil and gas production – which is central to Chesapeake's business – in Texas and Pennsylvania.  

Speaking on Lawler's expertise and ability to lead the company forward, Archie Dunham, chairman of the board, said:

Doug is a talented and proven executive with the ideal skill set to lead Chesapeake forward and capitalize fully on our world-class assets. Throughout his 25 years in the upstream E&P industry, Doug has earned a reputation as a highly engaged and knowledgeable leader who delivers superior operational performance and capital efficiency. The Board is confident that Doug's deep technical upstream and engineering expertise as well as his strategic and financial skills will serve Chesapeake well. We look forward to working with him to create value for Chesapeake shareholders.

Major hurdles remain
Analysts were generally optimistic about Lawler's appointment as CEO, suggesting he would help bring much-needed capital discipline to the company. However, he inherits a company that – despite having made solid progress in cutting costs and boosting oil production – still has some daunting tasks ahead of it, the most urgent of which is reducing its leverage.

"[Lawler] is coming into a company that has serious challenges," said Fadel Gheit, a senior energy analyst at Oppenheimer. "It's a mine field that he has to navigate through, but he's very experienced and I feel he will live up to the challenge."

During McClendon's tenure as CEO, Chesapeake accumulated a ton of debt through the acquisition of new shale oil and gas assets as part of its aggressive expansion strategy. But now, the company is focused on a new strategy of "value realization", whereby it aims to unlock value from its existing asset base, instead of acquiring new properties.

Central to its new strategy is growing its oil production, an area in which the company has made impressive progress over the past couple of quarters. Total oil production increased 56% year over year in the first quarter, bolstered by solid performance from the company's Eagle Ford and Greater Anadarko Basin assets.

What's next?
With solid growth in its oil output, Chesapeake now expects to generate operating cash flow of about $5.25 billion this year, up from $4.05 billion last year. The increase should help the company fund a larger chunk of its ambitious drilling program internally, as opposed to relying on debt.

Additional asset sales should also help the company eliminate its funding gap – the difference between its spending and expected cash flow – for the year, which should be under $1.5 billion by now. If Chesapeake can generate at least that amount of money via asset sales, it reckons that it will be able to fully fund its spending program for the year, while keeping long-term debt at or below the level it reached at the end of 2012.

However, even if Chesapeake meets its asset sale target for the year, it will need to demonstrate that it can reign in spending, boost production, and avoid cash flow shortfalls in 2014 and beyond – all while divesting non-core assets. To be assured of that, the markets will need some more convincing. Let's see if Lawler can persuade them.

Will Chesapeake manage to meet its oil production target and boost cash flow? Or will it languish under the weight of its heavy debt load? To help answer that question and to learn more about Chesapeake and its enormous potential, you're invited to check out The Motley Fool's brand-new premium report on the company. Simply click here now to access your copy and, as an added bonus, you'll receive a full year of key updates and expert guidance as news continues to develop.

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More Expert Advice from The Motley Fool
The Motley Fool's chief investment officer has selected his No. 1 stock for the next year. Find out which stock in our brand-new free report: "The Motley Fool's Top Stock for 2013." I invite you to take a copy, free for a limited time. Just click here to access the report and find out the name of this under-the-radar company.

Time to Buy These 2 Dividend Stocks?

The following video is from Friday's Investor Beat, in which host Chris Hill, and analysts Ron Gross and Charly Travers dissect the hardest-hitting investing stories of the day.

The Dow Index rose more than 4% in May, fueled, in part, by a booming housing market. In this installment of Investor Beat, Motley Fool analysts Ron Gross and Charly Travers examine what's driving the market, and why investors can still find values in big technology companies like Intel (NASDAQ: INTC  ) and Microsoft (NASDAQ: MSFT  ) .

When it comes to dominating markets, it doesn't get much better than Intel's position in the PC microprocessor arena. However, that market is maturing, and Intel finds itself in a precarious situation longer term if it doesn't find new avenues for growth. In this premium research report on Intel, a Motley Fool analyst runs through all of the key topics investors should understand about the chip giant. Click here now to learn more.

The relevant video segment can be found between 0:14 and 1:44.

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More Expert Advice from The Motley Fool
The Motley Fool's chief investment officer has selected his No. 1 stock for the next year. Find out which stock in our brand-new free report: "The Motley Fool's Top Stock for 2013." I invite you to take a copy, free for a limited time. Just click here to access the report and find out the name of this under-the-radar company.

Why Targa Resources Is Poised to Keep Poppin'

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, midstream natural gas services specialist Targa Resources Partners  (NYSE: NGLS  ) has earned a coveted five-star ranking.

With that in mind, let's take a closer look at Targa and see what CAPS investors are saying about the stock right now.

Targa facts

Headquarters (founded)

Houston, Texas (2006)

Market Cap

$5.0 billion


Oil and gas storage and transportation

Trailing-12-Month Revenue

$5.6 billion


CEO Joe Perkins

COO Michael Heim

Return on Equity (average, past 3 years)



$102.1 million / $2.5 billion

Dividend Yield




Enterprise Products Partners

ONEOK Partners

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 94% of the 286 members who have rated Targa believe the stock will outperform the S&P 500 going forward.   

Earlier today, one of those Fools, AnsgarJohn, succinctly summed up the Targa bull case for our community:

Targa Resources Partners (NGLS) is in the right place at the right time to take advantage of the midcontinent boom in the U.S. production of natural gas liquids, a key feedstock for the chemical industry. This master limited partnership has just made its first acquisition in the Bakken Shale formation, adding an oil pipeline to its natural gas liquids focus. ...

Distributions have grown at an average annual rate of 12.5% over the last five years. (Master limited partnerships are tax-advantaged vehicles best owned outside a retirement account. Part of the annual distribution is treated as a return of capital and is not taxed until you sell the units.)

There are many different ways to play the energy sector, and The Motley Fool's analysts have uncovered an under-the-radar company that's dominating its industry. This company is a leading provider of equipment and components used in drilling and production operations, and poised to profit in a big way from it. To get the name and detailed analysis of this company that will prosper for years to come, check out the special free report: "The Only Energy Stock You'll Ever Need." Don't miss out on this limited-time offer and your opportunity to discover this under-the-radar company before the market does. Click here to access your report -- it's totally free.

Top 5 Cheap Companies To Buy For 2014

In spite of America's sweet tooth, the country is awash in sugar. So much so that the Agriculture Dept. wants to use a little-known portion of the 2008 Farm Bill to buy up surplus supplies to raise the commodity's price. At the same time, it will sell the surplus to ethanol producers at a loss. The likely big winner in all this? Monsanto (NYSE: MON  ) .

Big rock candy mountain
The U.S. produced 8-million metric tons of sugar last year, making it one of the world's largest producers. Of that amount, 55% of it was derived from sugar beets, of which Monsanto's genetically modified seeds own 95% of that portion.

The remaining 45% came from sugarcane. As the USDA notes,�U.S. sugar prices have been well above world prices since 1982 because the government supports domestic sugar prices through loans to processors and a marketing allotment program.�Lately, though, sugar has been selling at its lowest level in four years, which jeopardizes growers who've taken out loans from the USDA when prices were higher.�Last week, the agency asked the Obama administration to allow it to buy hundreds of thousands of tons of sugar under a sugar-for-ethanol program called the�Feedstock Flexibility Program. Since it's required by law to prop up sugar processors, it says that this is the cheapest way it can do it.

Top 5 Cheap Companies To Buy For 2014: Whole Foods Market Inc.(WFM)

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

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

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

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

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

  • [By Chris Stuart]

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

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

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

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

Top 5 Cheap Companies To Buy For 2014: LifePoint Hospitals Inc.(LPNT)

LifePoint Hospitals Inc., through its subsidiaries, operates general acute care hospitals in non-urban communities in the United States. The company?s hospitals provide a range of medical and surgical services comprising general surgery, internal medicine, obstetrics, emergency room care, radiology, oncology, diagnostic care, coronary care, rehabilitation services, and pediatric services, as well as specialized services, such as open-heart surgery, skilled nursing, psychiatric care, and neuro-surgery. Its hospitals also offer outpatient services, including one-day surgery, laboratory, x-ray, respiratory therapy, imaging, sports medicine, and lithotripsy. As of December 31, 2009, LifePoint Hospitals owned or leased 47 hospitals with a total of 5,552 licensed beds in 17 states. The company was founded in 1997 and is headquartered in Brentwood, Tennessee. Lifepoint Hospitals Inc. (NasdaqNM:LPNT) operates independently of HCA Inc. as of May 11, 1999.

Advisors' Opinion:
  • [By Vatalyst]

    Life Point Hospitals (LPNT) operates general acute care hospitals in growing, non urban areas in the US. It looks to acquire hospitals where it will be the sole provider to the community.

    On the earnings front, it had a good first quarter, beating analyst estimates. The common stock currently trades at a price to earnings ratio of 10.1, well below its 10 year historical average of 13.5. Its price to book ratio stands at 0.82 with price to cash flow being 5.1.

Best Services Stocks To Own Right Now: UnitedHealth Group Incorporated(UNH)

UnitedHealth Group Incorporated provides healthcare services in the United States. Its Health Benefits segment offers consumer-oriented health benefit plans and services to national employers, public sector employers, mid-sized employers, small businesses, and individuals; and non-employer based insurance options for purchase by individuals. It also provides health and well-being services for individuals aged 50 and older; and for services dealing with chronic disease and other specialized issues for older individuals, as well as health plans for the beneficiaries of acute and long-term care Medicaid plans. This segment offers its services through a network of 730,000 physicians and other health care professionals, and 5,300 hospitals. Its OptumHealth segment provides health, financial, and ancillary services and products that assist consumers through personalized health management solutions; benefit administration, and clinical and network management; health-based financi al services; behavioral solutions; and specialty benefits, such as dental, vision, life, critical illness, short-term disability, and stop-loss product offerings. The company?s Ingenix segment offers database and data management services, software products, publications, consulting and actuarial services, business process outsourcing services, and pharmaceutical data consulting and research services. Its Prescription Solutions segment provides integrated pharmacy benefit management services comprising retail network pharmacy contracting and management, claims processing, mail order pharmacy services, specialty pharmacy, benefit design consultation, rebate contracting and management, drug utilization review, formulary management programs, disease therapy management, and adherence programs to employer groups, union trusts, managed care organizations, Medicare-contracted plans, Medicaid plans, and third party administrators. The company was founded in 1974 and is based in Minne tonka, Minnesota.

Advisors' Opinion:
  • [By Vatalyst]

    United Health Group (UNH) provides health care benefits to over 32 million people in the US. In 2010, UNH was ranked second in enrollments.

    The first two quarters for 2011 was strong with second quarter earnings beating analyst estimates. This was mainly due to increased enrollment and premium hikes.

    From a valuation perspective, the common stock currently trades at a price to earnings ratio of 10, below is historical average of 13.5. Price to book value is 1.75, and price to cash flow is 8.

  • [By Ken Sweet]

    Shareholders of UnitedHealth (UNH) reaped the rewards this year from the managed care company's strong profits and upbeat guidance.

    UnitedHealth raised its full-year guidance in late April to $3.95 to $4.05 a share, well ahead of analysts' forecasts. The company also increased its quarterly dividend last month to 16.25 cents a share, from 12.5 cents a share.

    UnitedHealth's performance is also tied to what has been broad investor interest in healthcare stocks this year as a defensive play against what has been a recently downward-trending market.

  • [By Jon C. Ogg]

    UnitedHealth Group Inc. (NYSE: UNH) is the newest of the DJIA components, now that Kraft Foods has split itself up. The health insurance giant closed out 2013 at $54.24, and that was well off the 52-week high, as its range in the past year was $49.82 to $60.75. Analysts believe that the stock will rise some 23.4% to $66.97 by the end of 2013. The insurer has a lower dividend than most DJIA stocks, at only about 1.6%, and its market value is close to $55 billion. UnitedHealth so far has recovered only about half of its losses from last summer.

Top 5 Cheap Companies To Buy For 2014: USG Corporation(USG)

USG Corporation, through its subsidiaries, engages in the manufacture and distribution of building materials worldwide. The company offers gypsum and related products, including gypsum wallboard, joint compounds used for finishing wallboard joints, cement boards, glass mat sheathing, gypsum fiber panels, poured gypsum underlayments, ultra light panels, and various construction plaster products. Its gypsum products are used in various building applications to finish the interior walls, ceilings, and floors in residential, commercial, and institutional constructions, and repair and remodel constructions. The company also produces gypsum-based products for agricultural and industrial customers to use in various applications, including soil conditioning, road repair, fireproofing, and ceramics. In addition, it manufactures ceiling grid and acoustical ceiling tile for electrical and mechanical systems, and air distribution and maintenance applications. USG Corporation distribut es its gypsum products through specialty wallboard distributors, building materials dealers, home improvement centers and other retailers, contractors, and a network of distributors. Further, it distributes other manufacturers? gypsum wallboard, joint compound and other gypsum products, as well as drywall metal, insulation, and roofing products and accessories. The company sells its products under SHEETROCK, DUROCK, FIBEROCK, SECUROCK, LEVELROCK, RED TOP, IMPERIAL, DIAMOND, SUPREMO, AURATONE, ACOUSTONE, DONN, DX, FINELINE, CENTRICITEE, CURVATURA, and COMPASSO brands. The company was founded in 1901 and is based in Chicago, Illinois.

Advisors' Opinion:
  • [By]

    USG is a worldwide producer of building materials, primarily gypsum wallboard, which is used for repair and construction.

    Shares are trading at $8.17 at the time of writing, at the lower end of their 52-week trading range of $7.88 to $19.91. At the current market price, the company is capitalized at $860.22 million. Earnings per share for the last fiscal year were -$3.87, and it paid no dividend.

    These earnings are expected to remain negative through the next couple of years, though the loss per share is expected to reduce to $1.60 in 2012. Revenue during this time is forecast to increase to around $3.25 billion.

    The story with USG is all about its debt. With $2.31 billion of debt under its belt, it has very little room to maneuver. With a patchy economy going forward, the company may find it hard to cut its loss per share by the amount that it needs to. Consequently, it may struggle to return to profitability. Given its debt, the book value of the shares is $5.01. Action looks to be time critical now. With S&P (MHP) recently cutting USG’s credit rating, it may soon be time for the company to go to the market to raise cash.

    If the company can address its burgeoning debt, then it may look attractive. Until then, avoid.

Top 5 Cheap Companies To Buy For 2014: Bank of America Corporation(BAC)

Bank of America Corporation, a financial holding company, provides banking and nonbanking financial services and products to individuals, small- and middle-market businesses, large corporations, and governments in the United States and internationally. The company?s Deposits segment generates savings accounts, money market savings accounts, certificate of deposits, and checking accounts; and Global Card Services segment provides the U.S. consumer and business card, consumer lending, international card and debit card services. Its Home Loans & Insurance segment offers consumer real estate products and services, including mortgage loans, reverse mortgages, home equity lines of credit, and home equity loans. It also provides property, disability, and credit insurance. The company?s Global Commercial Banking segment offers lending products, including commercial loans and commitment facilities, real estate lending, leasing, trade finance, short-term credit, asset-based lending, and indirect consumer loans; and capital management and treasury solutions, such as treasury management, foreign exchange, and short-term investing options. Its Global Banking & Markets segment provides financial products, advisory services, settlement, and custody services; debt and equity underwriting and distribution, merger-related advisory services, and risk management products; and integrated working capital management and treasury solutions. The company?s Global Wealth & Investment Management segment offers investment and brokerage services, estate management, financial planning services, fiduciary management, credit and banking expertise, and asset management products. Bank of America Corporation serves customers through a network of approximately 5,900 banking centers and 18,000 automated teller machines. It was formerly known as NationsBank Corporation and changed its name on October 1, 1998. Bank of America Corporation was founded in 1874 and is based in Charlott e, North Carolina.

Advisors' Opinion:
  • [By Sy_Harding]


  • [By John Grgurich]

    To any investors following the financial sector in 2012, it will come perhaps as no surprise that B of A is the year's top financials performer: moving from $5.81 per share to its year high of $11.61, for a whopping percentage gain of 100.17%. At the height of the financial crisis, in February 2009, B of A's stock traded for as low as $3.95.  

EU Eases Pace of Austerity to Help Economy

BERLIN (AP) -- The European Union moved away from its focus on tough austerity Wednesday when it gave France, Spain, and four other member states more time to bring their budget deficits under control to support their economies.

Unveiling a series of country-specific policy recommendations in Brussels, the EU Commission, the 27-nation bloc's executive arm, said the countries must implement structural reforms, such as overhauling labor markets to make their economies more competitive.

Commission President Jose Manuel Barroso said that the pace of reform needed to be stepped up across the EU to solve the bloc's three-year crisis. "There is no room for complacency," he insisted.

Europe is stuck in a recession, with unemployment at record highs in several countries. This has led to a debate over the merits and faults of budget austerity as a way to solve the region's government debt problems.

By continuing to focus on controlling debt through austerity measures such as spending cuts and raising taxes, Europe's economic downturn has worsened and government revenues have been slashed. This in turn makes it harder to meet deficit targets.

There is now a growing consensus that European governments must shift their budget policies more toward fostering growth to end the downward economic spiral.

Besides France and Spain, the Commission is also granting the Netherlands, Poland, Portugal and Slovenia more time to bring their deficits below the EU ceiling of 3 percent of annual economic output. That means governments will be allowed to stretch out spending cuts over a longer time so as not to choke off growth as they try to fight record unemployment and recession.

The Netherlands and Portugal are granted one more year, whereas France, Spain, Poland, and Slovenia are granted two additional years each.

Barroso rejected the idea that the Commission bowed to political pressure and was now too soft on the countries that are granted more time.

Singling out France, the eurozone's second-largest economy, Barroso said the "message to France is indeed a very demanding one."

"This extra time should be used wisely to address France's failing competitiveness," he added.

In its recommendations, the Commission urges France to implement credible "ambitious structural reforms to ... boost growth and employment." It also urges France to cut red tape, improve conditions for small and medium sized companies and strengthen competition in the country's service and energy sector.

"French companies' market shares have experienced worrying erosion in the last decade, in fact beyond the last decade, we can say the last 20 years," Barroso stressed.

"Structural reforms are essential to kick-start growth and serve the dual goal of reducing unemployment and restoring the sustainability of public finances," the Commission said.

Spain, the eurozone's fourth-largest economy which is mired in recession with an unemployment rate of 27 percent, now has until 2016 to bring its deficit under control, which is set to drop from 6.5 percent of GDP this year to then 2.8 percent.

To achieve this significant amount, it says Madrid must scrutinize all major spending programs, push ahead with its labor market reform, revise the tax system, reduce costs in the health sector and push through pending bank recapitalizations.

The Commission's recommendations will become legally binding and shape the countries' fiscal policies once approved by the EU's leaders, who will discuss them at their summit next month.

Some countries were also dropped off the Commission's list of nations whose budget is under increased surveillance because of an excessive deficit. They include Italy, Latvia, Hungary, Lithuania and Romania.

The most important of these decisions was on Italy, the eurozone's third-largest economy, where the Commission expects this year's deficit to come in at 2.9 percent and then 1.8 percent in 2014. However, the experts in Brussels gave the new government in Rome a long list of structural reforms that have to be pushed through.

Malta, however, was added to the watch-list and was urged to bring its deficit in line by next year, with a deficit of 3.4 percent of GDP and 2.7 percent in 2014.

The decisions bring the number of countries under the Commission's deficit watch to 16 of the EU's 27 nations, said Olli Rehn, the EU's top economic official.

Since the debt crisis erupted, EU nations have agreed to give the bloc's executive arm more powers in scrutinizing national budgets, complete with the ability to punish or issue binding policy recommendations for countries running excessive deficits.

In practice, however, the Commission wields considerable power in its dealings with smaller member states, but big nations like France are hard to bring into line.

A leading international body warned Wednesday that the recession in Europe risks hurting the world's economic recovery as whole. The Organization for Economic Cooperation and Development said the eurozone's economy is now expected to shrink by 0.6 percent this year, against a predicted drop of 0.1 percent in its latest outlook six months ago.

The EU Commission this month forecast the eurozone's economy would shrink by 0.4 this year. It estimated the wider EU -- which includes the 10 nations such as Britain that don't use the euro currency -- would suffer a 0.1 percent contraction.

Thursday, May 30, 2013

Could This Change in Strategy Be a Win for Microsoft Stock?

Despite its best efforts to seek out greener pastures, software giant Microsoft's  (NASDAQ: MSFT  ) business remains frustratingly tied to a PC market that could be generously described as ailing. And while the company attempts to break into the mobile OS game through its Surface suite of tablets, Microsoft runs the risk of failing to port its massively lucrative application software business onto this next-gen platform. Though the reluctance to do so fits within Microsoft's current strategy, is the company running the risk of killing the golden goose? Fool contributor Andrew Tonner answers these questions and more in the video below.

It's been a frustrating path for Microsoft investors, who've watched the company fail to capitalize on the incredible growth in mobile over the past decade. However, with the release of its own tablet, along with the widely anticipated Windows 8 operating system, the company is looking to make a splash in this booming market. In a new premium report on Microsoft, a Motley Fool analyst explains that while the opportunity is huge, so are the challenges. The report includes regular updates as key events occur, so make sure to claim a copy of this report now by clicking here.

Can This Tech Laggard Keep Proving Doubters Wrong?

It's no secret that Microsoft (NASDAQ: MSFT  ) has missed or bungled its fair share of opportunities over the last decade, and it shows. Excluding dividends, the lumbering tech giant's shares have been flat for the better part of a decade -- until recently.

Despite its many detractors, Microsoft's stock has been on a tear in 2013, having risen around 30%. And while it was fair to stay that Microsoft was simply too cheap, that's not necessarily the case anymore. In the video below, Fool contributor Andrew Tonner investigates whether there's still opportunity in Microsoft shares today.

It's been a frustrating path for Microsoft investors, who've watched the company fail to capitalize on the incredible growth in mobile over the past decade. However, with the release of its own tablet, along with the widely anticipated Windows 8 operating system, the company is looking to make a splash in this booming market. In a new premium report on Microsoft, a Motley Fool analyst explains that while the opportunity is huge, so are the challenges. The report includes regular updates as key events occur, so make sure to claim a copy of this report now by clicking here.

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More Expert Advice from The Motley Fool
The Motley Fool's chief investment officer has selected his No. 1 stock for the next year. Find out which stock in our brand-new free report: "The Motley Fool's Top Stock for 2013." I invite you to take a copy, free for a limited time. Just click here to access the report and find out the name of this under-the-radar company.

McDonald's CEO: I Lost Weight by Being More Active

NEW YORK (AP) -- They might start calling it the McDiet.

McDonald's (NYSE: MCD  ) CEO Don Thompson revealed at an analyst conference this week that he shed about 20 pounds in the past year by getting his "butt up" and "working out again." But he said he hasn't changed his habit of eating at McDonald's "every single day."

Thompson, who has been on the job for less than a year, was responding to a question about how the company is adapting amid growing concerns about obesity.

Thompson said that he lost the weight by getting active again. He noted that Europeans walk a lot and that it's rare to see Europeans that are "very, very heavy."

"And so I think that balance is really important to people," he said.

The remarks come as fast-food chains and packaged food companies face criticism about making products that fuel obesity rates. Coca-Cola (NYSE: KO  ) , for example, recently started a campaign seeking to highlight its healthier, low-calorie drinks as well as the importance of physical activity in a balanced lifestyle.

For its part, McDonald's in recent years has boosted its marketing to highlight healthier menu options, including salads, chicken wraps, and egg white breakfast sandwiches.

At the Sanford Bernstein conference on Wednesday, Thompson noted that customers have many options at the fast-food chain. For example, he said someone might get a Big Mac one day and a grilled chicken salad with balsamic vinaigrette another day.

Earlier in the talk, however, Thompson also said that salads make up just 2 percent to 3 percent of sales. He said there were other ways the company could incorporate fruits and vegetables into its menu, pointing to the chicken wraps it recently introduced.

But going forward, he said: "I don't see salads being a major growth driver."

Value Investing: Lessons Learned From the Crisis

Top Machinery Companies To Watch In Right Now

"History must repeat itself because we pay such little attention to it the first time." (Blackie Sherrod, sportswriter born 1919 and still "kicking")

On April 8th, we learned that General Electric (GE) would be acquiring Lufkin Industries (LUFK). The deal is one of the three largest in the oilfield machinery and equipment industry during the past decade, and sets the stage for further acquisitions in this sector. Investors should start considering which companies might be next.

Bloomberg had been saying since September 2012 that LUFK was a takeover target when its stock had fallen to the lowest price in 3 years. "Lufkin will more than double GE's share of the artificial lift segment and give it about 15 percent market share," Julian Mitchell, an analyst at Credit Suisse in New York wrote in a note to clients.

Top Machinery Companies To Watch In Right Now: Danaher Corp (DHR)

Danaher Corporation (Danaher) designs, manufactures and markets professional, medical, industrial and commercial products and services. The Company�� research and development, manufacturing, sales, distribution, service and administrative facilities are located in more than 50 countries. It operates in five segments: Test & Measurement; Environmental; Life Sciences & Diagnostics; Dental; and Industrial Technologies. In April 2011, the Company sold its Pacific Scientific Aerospace (PSA) business. On June 30, 2011, the Company acquired Beckman Coulter, Inc. (Beckman Coulter). In January 2012, the Company sold its Accu-Sort businesses. In February 2012, the Company sold its Kollmorgen Electro-Optical (KEO) business. During the year ended December 31, 2011, the Company acquired EskoArtwork, On February 6, 2012, L-3 Communications Holdings, Inc. acquired Kollmorgen Electro-Optical unit of the Company. In January 2013, the Company acquired Navman Wireless.


The Company�� Test & Measurement segment is a provider of electronic measurement instruments and monitoring, management and optimization tools for communications and enterprise networks and related services. The segment�� products are used in the design, development, manufacture, installation, deployment and operation of electronics equipment and communications networks and services. Customers for these products and services include manufacturers of electronic instruments; service, installation and maintenance professionals; manufacturers who design, develop, manufacture and install network equipment, and service providers who implement, maintain and manage communications networks and services.

The Company�� business designs, manufactures, and markets a variety of compact professional test tools, thermal imaging and calibration equipment for electrical, industrial, electronic and calibration applications. These test products measure voltage, current, resistance, power quality, frequency, p! ressure, temperature and air quality. Typical users of these products include electrical engineers, electricians, electronic technicians, medical technicians, and industrial maintenance professionals. Its business also offers general purpose test products and video test, measurement and monitoring products used in electronic design, manufacturing and advanced technology development. The business��general purpose test products, including oscilloscopes, logic analyzers, signal sources and spectrum analyzers, are used to capture, display and analyze streams of electrical data. The Company sells these products into a variety of industries with electronic content, including the communications, computer, consumer electronics, education, military/aerospace and semiconductor industries.

Typical users include research and development engineers who use its general purpose test products to design, de-bug, monitor and validate the function and performance of electronic components, subassemblies and end-products. Its video test products include waveform monitors, video signal generators, compressed digital video test products and other test and measurement equipment used to enhance a viewer�� video experience. Typical users of these products include video equipment manufacturers, content developers and traditional television broadcasters. Products in this business are marketed under the FLUKE, TEKTRONIX, KEITHLEY, RAYTEK, FLUKE BIOMEDICAL, AMPROBE and MAXTEK brands.

The communications businesses offer network management solutions, handheld and fixed diagnostic equipment and security solutions, as well as related installation and maintenance services, for a range of private network applications, as well fixed and mobile communications systems. Typical users of the business��products include network engineers, installers, operators, and technicians. Its network management tools help network operators continuously manage network performance and optimize the utilization, uptime and servi! ce qualit! y of the network. Products in this business are marketed under the TEKTRONIX, FLUKE NETWORKS, ARBOR, VISUAL NETWORKS and AIRMAGNET brands.

Matco Tools manufactures and distributes professional tools, toolboxes and automotive equipment through independent mobile distributors, who sell primarily to professional mechanics under the MATCO brand. Hennessy Industries is a North American full-line wheel service equipment manufacturer, providing brake lathes, vehicle lifts, tire changers, wheel balancers, and wheel weights under the AMMCO, BADA and COATS brands. Typical users of these products are automotive tire and repair shops. Sales are generally made through its direct sales personnel, independent distributors, retailers, and original equipment manufacturers.


The Company�� Environmental segment provides products that help protect its water supply and air quality and serves two primary markets: water quality and retail/commercial petroleum. Danaher�� water quality business is engaged in water quality analysis and treatment, providing instrumentation and disinfection systems to help analyze and manage the quality of ultra pure, potable and waste water in residential, commercial, industrial and natural resource applications. Its water quality operations design, manufacture and market a range of analytical instruments, related consumables, and associated services that detect and measure chemical, physical, and microbiological parameters in ultra pure, potable and waste water as well as groundwater and ocean bodies; ultraviolet disinfection systems, which disinfect billions of gallons of municipal, industrial and consumer water every day in more than 35 countries, and industrial water treatment solutions, including chemical treatment solutions intended to address corrosion, scaling and biological growth problems in boiler, cooling water and industrial waste water applications, as well as associated analytical services. Typical users of its analytical in! struments! , ultraviolet disinfection systems, industrial water treatment solutions and related consumables and services include professionals in municipal drinking water and waste water treatment plants and industrial process water and waste water treatment facilities, third-party testing laboratories and environmental field operations. Its water quality business provides products under a variety of well-known brands, including HACH, HACH/LANGE, TROJAN TECHNOLOGIES and CHEMTREAT. Manufacturing facilities are located in North America, Europe, and Asia.

The Company has served the retail/commercial petroleum market through its Veeder-Root business. Gilbarco Veeder-Root is a provider of products and services for the retail/commercial petroleum market, including environmental monitoring and leak detection systems; vapor recovery equipment; fuel dispensers; point-of-sale and secure electronic payment technologies for retail petroleum stations; submersible turbine pumps, and remote monitoring and outsourced fuel management services, including compliance services, fuel system maintenance, and inventory planning and supply chain support. Typical users of these products include independent and Company-owned retail petroleum stations, high-volume retailers, convenience stores, and commercial vehicle fleets. The Company markets its retail/commercial petroleum products under a variety of brands, including GILBARCO, VEEDER-ROOT, and GILBARCO AUTOTANK. Manufacturing facilities are located in North America, Europe, Asia and Latin America. Sales are generally made through independent distributors and its direct sales personnel.


The Company�� diagnostics businesses offer a range of analytical instruments, reagents, consumables, software and services that hospitals, physician�� offices, reference laboratories and other critical care settings use to diagnose disease and make treatment decisions. Its life sciences businesses offer a range of research and clinical ! tools tha! t are used by scientists to study cells and cell components to gain a better understanding of complex biological matters. Pharmaceutical and biotechnology companies, universities, medical schools and research institutions use these tools to study the causes of disease, identify new therapies and test new drugs and vaccines. The diagnostics business consists of its core lab, acute care and pathology diagnostics businesses.

The Company�� core lab diagnostics business is a manufacturer and marketer of biomedical testing instrument systems, tests and supplies that are used to evaluate and analyze samples made up of body fluids, cells and other substances. The information generated is used to diagnose disease, monitor and guide treatment and therapy, assist in managing chronic disease and assess patient status in the hospital, outpatient and physician office settings. Its chemistry systems use electrochemical detection and chemical reactions with patient samples to detect and quantify substances of diagnostic interest in blood and other body fluids. Commonly performed tests include glucose, cholesterol, triglycerides, electrolytes, proteins and enzymes.

The Company�� immunoassay systems also detect and quantify chemical substances of diagnostic interest in body fluids, particularly in circumstances where more specialized diagnosis is required. Commonly performed immunoassay tests assess thyroid function, screen and monitor for cancer and cardiac risk and provide important information in fertility and reproductive testing. Its cellular analysis business includes hematology, flow cytometry and coagulation products. The business��hematology systems use principles of physics, optics, electronics and chemistry to separate cells of diagnostic interest and then quantify and characterize them, allowing clinicians to study formed elements in blood (such as red and white blood cells and platelets). The business also distributes coagulation products, which rely on clotting, chromogenic! and immu! nologic technologies to provide the detailed information that clinicians require to diagnose bleeding and clotting disorders and to monitor anticoagulant therapy. It also offer systems and workflow solutions that allow laboratories to automate a number of steps from the pre-analytical through post-analytical stages including sample barcoding/information tracking, centrifugation, aliquotting, storage and conveyance. These systems along with the analyzers above are controlled through laboratory level software that enables laboratory managers to monitor samples, results and lab efficiency.

The Company�� acute care diagnostics business is a provider of instruments and related consumables and services that are used in both laboratory and point-of-care environments to rapidly measure critical parameters, including blood gases, electrolytes, metabolites and cardiac markers. Typical users of these products include hospital central laboratories, intensive care units, hospital operating rooms and hospital emergency rooms. Its pathology diagnostics business is engaged in the anatomical pathology market, offering a suite of instrumentation and related consumables used across the entire workflow of a pathology laboratory. Its pathology diagnostics products include tissue embedding, processing and slicing (microtomes) instruments and related reagents and consumables; chemical and immuno-staining instruments, reagents, antibodies and consumables; slide coverslipping and slide/cassette marking instruments, and imaging instrumentation including slide scanners, microscopes, cameras and associated software. Typical users of these products include pathologists, lab managers and researchers. Its diagnostics business generally markets its products under the BECKMAN COULTER, LEICA BIOSYSTEMS, RADIOMETER and SURGIPATH brands. Manufacturing facilities are located in North America, Europe, Asia and Australia. The businesses sell to customers primarily through direct sales personnel and to a lesser extent through ! independe! nt distributors.

The Company�� microscopy business is a provider of professional microscopes designed to manipulate, preserve and capture images of, and enhance the user�� visualization of, microscopic structures. Its microscopy products include laser scanning (confocal) microscopes; compound microscopes and related equipment; surgical and other stereo microscopes; specimen preparation products for electron microscopy; and digital image capture and manipulation equipment. The Company also offers workflow instruments and consumables that help researchers analyze genomic, protein and cellular information. Key product areas include sample preparation equipment, such as centrifugation and capillary electrophoresis instrumentation and consumables; liquid handling automation instruments and associated consumables; flow cytometry instrumentation and associated antibodies and reagents; and particle characterization instrumentation. The business also offers genome profiling services. Researchers use the business��products to study biological function in the pursuit of basic research, therapeutic and diagnostic development. Typical users of these products include pharmaceutical and biotechnology companies, universities, medical schools and research institutions and in some cases industrial manufacturers.

The Company�� mass spectrometry business is a provider of high-end mass spectrometers. Mass spectrometry is a technique for identifying, analyzing and quantifying elements, chemical compounds and biological molecules, individually or in complex mixtures. Its products utilize various combinations of quadrupole, time-of-flight and ion trap technologies, and are typically used in conjunction with a third party liquid chromatography instrument. Its mass spectrometer systems are used in numerous applications, such as drug discovery and clinical development of therapeutics as well as in basic research, clinical testing, food and beverage quality testing and environmental testing. To s! upport it! s installations around the world, it provides implementation, validation, training, maintenance and support from its global services network. Typical users of its mass spectrometry products include molecular biologists, bioanalytical chemists, toxicologists, and forensic scientists, as well as quality assurance and quality control technicians. It also provides high-performance bioanalytical measurement systems, including microplate readers, automated cellular screening products and associated reagents, and imaging software. Typical users of these products include biologists and chemists engaged in research and drug discovery, who use these products to determine electrical or chemical activity in cell samples. Its life sciences business generally markets its products under the LEICA MICROSYSTEMS, BECKMAN COULTER, AB SCIEX and MOLECULAR DEVICES brands. Manufacturing facilities are located in Europe, Australia, Asia and North America.


The Company�� Dental segment is a provider of a range of consumables, equipment and services for the dental market, which encompasses the diagnosis, treatment and prevention of disease and ailments of the teeth, gums and supporting bone. Its dental businesses develop, manufacture and market dental consumables and dental equipment orthodontic bracket systems and lab products; impression, bonding and restorative materials; endodontic systems and related consumables; infection prevention products, and diamond and carbide rotary instruments. Typical customers and users of these products include general dentists, dental specialists, dental hygienists, dental laboratories and other oral health professionals, as well as educational, medical and governmental entities. Its dental products are marketed primarily under the KAVO, GENDEX, iCAT, INSTRUMENTARIUM DENTAL, SOREDEX, PELTON & CRANE, DEXIS, ORMCO, KERR, PENTRON, SYBRON ENDO and TOTAL CARE brands.


The Company�� Industrial Technologies segment ! designs a! nd manufactures components and systems that are typically incorporated by original equipment manufacturers (OEMs) and systems integrators for sale into a diverse set of applications and end-markets. The businesses in this segment also provide service and support, including helping customers with integration and installation and providing services to ensure performance and up-time. Danaher�� product identification business is a global provider of equipment and consumables for variable printing, marking and coding on a variety of consumer and industrial products. Its businesses design, manufacture, and market a variety of equipment used to print bar codes, date codes, lot codes, and other information on primary and secondary packaging. Its equipment can apply alphanumeric codes, logos and graphics to a range of surfaces at a variety of line speeds, angles and locations on a product or package.

EskoArtwork, the business is a service solutions provider for the digital packaging design and production market. Typical users of the product identification business��products include food and beverage manufacturers, pharmaceutical manufacturers, retailers and commercial printing and mailing operations. Its product identification products are primarily marketed under the VIDEOJET, LINX, FOBA and ESKOARTWORK brands. Manufacturing facilities are located in North America, Europe, Latin America, and Asia. The Company is a provider of electromechanical motion control solutions for the industrial automation and packaging markets. Its businesses provide a range of products including standard and custom motors; drives; controls, and mechanical components, such as ball screws, linear bearings, clutches/brakes, and linear actuators.

The products are sold in various precision motion markets, such as the markets for packaging equipment, medical equipment, robotics, circuit board assembly equipment, elevators and electric vehicles (such as lift trucks). Its motion products are marketed under a vari! ety of br! ands, including KOLLMORGEN, THOMSON, DOVER and PORTESCAP. Manufacturing facilities are located in North America, Europe, Latin America, and Asia. Its sensors and controls products include instruments that monitor, sense and control discrete manufacturing variables such as temperature, position, quantity, level, flow and time. Users of these products span a wide variety of manufacturing markets. Certain businesses included in this group also make and sell instruments, controls and monitoring systems used by the electric utility industry to monitor their transmission and distribution systems, as well as automatic identification solutions. The products are marketed under a variety of brands, including DYNAPAR, HENGSTLER, IRIS POWER, WEST, GEMS SENSORS, SETRA and QUALITROL. Sales are generally made through our direct sales personnel and independent distributors.

The Company�� defense business designs, manufactures, and markets energetic material systems. Typical users of these products include defense systems integrators and prime contractors. defense products are typically marketed under the PACIFIC SCIENTIFIC ENERGETIC MATERIALS COMPANY brand. The KEO business designs, develops, manufactures and integrates highly engineered, stabilized electro-optical/ISR systems that integrate into submarines, surface ships and ground vehicles. Jacobs Vehicle Systems (JVS) is a supplier of supplemental braking systems for commercial vehicles, selling JAKE BRAKE brand engine retarders for class 6 through 8 vehicles and bleeder and exhaust brakes for class 2 through 7 vehicles. Customers are primarily manufacturers of class 2 through class 8 vehicles, and sales are typically made through its direct sales personnel. Manufacturing facilities of its sensors and controls, defense and JVS businesses are located in North America, Latin America, Europe and Asia.

Advisors' Opinion:
  • [By Kathy Kristof]

    Headquarters: Washington, D.C.

    52-Week High: $56.06

    52-Week Low: $40.36

    Annual Sales: $16.1 bill.

    Projected Earnings Growth: 15% annually over the next five years 

    Danaher was an industrial conglomerate made up of disparate cyclical businesses. Then, in 1990, management opted to restructure to focus on five key areas in which it believed it could become a global leader. 

    The wisdom of the strategy proved itself in 2009 as the nation struggled with the recession precipitated by the financial crisis, says Morningstar analyst Daniel Holland. Although revenues of many of its rivals were cut in half that year, Danaher saw its sales drop about 12% and bounce back nicely in 2010. Revenues and profits have continued to rise by double-digit percentages. Second-quarter profits and sales jumped 31% and 28% respectively from the year-earlier period. 

    Danaher’s growth is primarily fueled by acquisitions, which it does unusually well. Danaher’s latest purchase, of Beckman Coulter last year, has not only proved profitable, it has put 40% of the company’s sales in the rapidly growing health care sector.

Top Machinery Companies To Watch In Right Now: First Majestic Silver Corp.(AG)

First Majestic Silver Corp. engages in the production, development, exploration, and acquisition of mineral properties with a focus on silver in Mexico. The company owns interests in La Encantada Silver Mine comprising 4,076 hectares of mining rights and 1,343 hectares of surface land located in Coahuila; La Parrilla Silver Mine consisting of mining concessions covering an area of 69,867 hectares; and San Martin Silver Mine comprising approximately 7,841 hectares of mineral rights and approximately 1,300 hectares of surface land rights located in Jalisco. It also holds interests in Del Toro Silver Mine consisting of 393 contiguous hectares of mining claims and an additional 129 hectares of surface rights located in Zacatecas; Real de Catorce Silver Project comprising 22 mining concessions covering 6,327 hectares located in San Luis Potosi state; and Jalisco Group of Properties consisting of mining claims totalling 5,240 hectares located in Jalisco. The company was founded in 1979 and is headquartered in Vancouver, Canada.

Advisors' Opinion:
  • [By Sy_Harding]

    First Majestic Silver is one of the purest silver plays on the market. The company owns and operates three primary silver mines in Mexico: La Parrilla, San Martin, and La Encantada.

    Shares of AG have risen more than 60% for the year.

    First Majestic generates 85% of its revenue through the production and sale of silver. The rest of the company's revenue is generated through gold, lead, and zinc.

    First Majestic expects to increase total silver output from its operations to 7.5 million ounces of silver in 2011, and up to 16.0 million ounces by 2014.

  • [By Goodwin]

    The shares closed at $88.19, down $1.1, or 1.23%, on the day. Its market capitalization is $77.08 billion. About the company: Siemens AG manufactures a wide range of industrial and consumer products. The Company builds locomotives, traffic control systems, automotive electronics, and engineers electrical power plants. Siemens also provides public and private communications networks, computers, building control systems, medical equipment, and electrical components. The Company operates worldwide.

Best Financial Stocks To Invest In 2014: AGCO Corporation (AGCO)

AGCO Corporation manufactures and distributes agricultural equipment and related replacement parts worldwide. The company provides tractors, including compact tractors for small farms and specialty agricultural industries comprising dairies, landscaping, and residential areas; utility tractors, such as two-wheel and all-wheel drive versions for small and medium-sized farms, and specialty agricultural industries consist of dairy, livestock, orchards, and vineyards; and horsepower tractors for large farms and on cattle ranches for hay production. It also offers application equipment, which includes self-propelled, three and four-wheeled vehicles, and related equipment for use in the application of liquid and dry fertilizers, and crop protection chemicals; chemical sprayer equipment for planting crops; and related equipment that comprises vehicles for waste application, as well as provides combines. In addition, the company offers hay tools and forage equipment consisting rou nd and rectangular balers, self-propelled windrowers, disc mowers, spreaders and mower conditioners for harvesting and packaging vegetative feeds; and engines, such as diesel engines, gears, and generating sets. Further, it provides implements, including disc harrows for improving field performance; heavy tillage to break up soil and mix crop residue; and field cultivators for preparing smooth seed bed and destroy weeds, as well as offers tractor-pulled planters and loaders. Additionally, the company provides precision farming technologies to enhance productivity and profitability on the farm; and other advanced technology precision farming products to gather information, such as yield data, as well as offers wholesale financing and retail financing. It markets its products under the Challenger, Fendt, Massey Ferguson, and Valtra brand names through a network of independent dealers and distributors. AGCO Corporation was founded in 1990 and is headquartered in Duluth, Georgia .

Top Machinery Companies To Watch In Right Now: Caterpillar Inc.(CAT)

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

Advisors' Opinion:
  • [By Sam Collins]

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

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

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

Top Machinery Companies To Watch In Right Now: Cummins Inc.(CMI)

Cummins Inc. designs, manufactures, distributes, and services diesel and natural gas engines, electric power generation systems, and engine-related component products worldwide. It operates in four segments: Engine, Power Generation, Components, and Distribution. The Engine segment offers a range of diesel and natural gas powered engines under the Cummins and other customer brand names for the heavy-and medium-duty truck, bus, recreational vehicle, light-duty automotive, agricultural, construction, mining, marine, oil and gas, rail, and governmental equipment markets. This segment also provides new parts and service, as well as remanufactured parts and engines. The Power Generation segment offers power generation systems, components, and services, including diesel, natural gas, gasoline, and alternative-fuel electrical generator sets for use in recreational vehicles, commercial vehicles, recreational marine applications, and home stand-by or residential applications. This segment also provides components that make up power generation systems, such as engines, controls, alternators, transfer switches, and switchgears. The Components segment supplies filtration products, turbochargers, aftertreatment systems, intake and exhaust systems, and fuel systems for commercial diesel applications. This segment offers filtration and exhaust systems for on-and off-highway heavy-duty and mid-range equipment, as well as supplies filtration products for industrial and passenger car applications. This segment also develops after treatment and exhaust systems to help customers meet emissions standards and fuel systems. The Distribution segment provides parts and services, as well as service solutions, including maintenance contracts, engineering services, and integrated products. The company sells its products to original equipment manufacturers, distributors, and other customers. Cummins Inc. was founded in 1919 and is headquartered in Columbus, Indiana.

Advisors' Opinion:
  • [By Matthew Scott]

    While trucking manufacturing Cummins (NYSE: CMI) is hardly a sexy stock, fleets of environmentally friendly trucks will be essential for many world economies to remain competitive as they slowly make their way out of the last recession. The price of Cummins’ stock has increased more than five and a half times in two years, jumping from $19.09 on March 9, 2009 to $109.62 at the end of the first quarter this year. As world economies begin to improve, transportation companies will begin replacing trucks so that they can move higher volumes of products more efficiently, and Cummins will benefit.

Wednesday, May 29, 2013

3 Shares to Gain From Powerful Global Trends

LONDON -- The economic crisis has forced governments worldwide to consider how they can deliver services more efficiently. Frequently, they are turning to the private sector. Compass Group (LSE: CPG  ) has been a major beneficiary of this trend.

Compass first made its name as a large-scale caterer in food halls, schools, and company buildings. Compass now offers a considerable range of other services such as security, cleaning, and maintenance.

In the past five years, sales at Compass have increased at an average rate of 10.5% per annum. In that time, earnings per share have increased at an average rate of 22.1% a year.

Compass is forecast to deliver EPS and dividend growth of around 9% a year, this year and next.

Mobile computing boom
Mobile computing on smartphones and tablets is fueling major cultural change. It is going global and revolutionizing both industry and consumer behavior.

ARM Holdings (LSE: ARM  ) (NASDAQ: ARMH  ) is the world leader in the design of small, low-power computer processors. As more is expected from smaller devices, ARM has cleaned up.

In 2007, the year Apple launched the iPhone, ARM made sales of 260 million pounds. Five years later, that figure had doubled. This growth saw the company increase EPS fourfold. BI Intelligence expects smartphone sales to increase 50% in the next two years. Mobile tablet sales growth is expected to be even higher.

ARM is forecast to grow earnings 70% this year and 30% in 2014. The shares today trade on a 2014 price-to-earnings ratio of 38.2 times forecast earnings.

Aging population
According to the U.S. Census Bureau, over-90s in America are 4.7% of all over-65s. In 1980, these ton-pushers were just 2.8% of the older population. In the U.K., a 45-year-old woman today can expect to live to 83 years of age.

As the world ages, its citizens' health-care demands will grow. Pharmaceutical firms such as GlaxoSmithKline (LSE: GSK  ) (NYSE: GSK  ) are perfectly positioned to profit.

Glaxo is forecast to grow EPS 17.1% in 2013 and 10.1% next year. That puts the shares on a 2014 P/E of 13.7. The dividend is expected to rise 5.3% this year and 5.2% the next, equating to a 2014 yield of 4.7%.

I'm not the only one convinced by the long-term prospects for this industry. The U.K.'s best fund manager, Neil Woodford, is also massively bullish on the pharmaceutical sector. He recently described pharmaceutical shares as "the opportunity of the decade." To help you learn more from this master investor, our team at The Motley Fool has prepared a report "8 Shares Held by Britain's Super-Investor." This report is totally free. Just click here to start reading today.

O'Reilly Automotive Raises Share Buyback Program by $500 Million

Astronics to Acquire PECO for $136 Million

Astronics Corp. (NASDAQ: ATRO  ) is bulking up in aerospace.

On Tuesday, the manufacturer of high-performance lighting, electrical power, and automated test systems for the global aerospace and defense industries announced that it has agreed to buy fellow aerospace interior components maker PECO for approximately $136 million, cash. Privately owned PECO is a supplier to Boeing and a maker of fuel access doors and also "passenger service units" that incorporate air handling, emergency oxygen, electrical power management, and cabin lighting systems. 

Astronics CEO Peter J. Gundermann called PECO "an excellent strategic fit with Astronics" and predicted that "the combination of world class capabilities from both organizations will serve to further our mutual goals."

With PECO doing $77.8 million in 2012 sales, the $136 million Astronics is paying works out to a 1.75 price-to-sales ratio on the acquisition -- making it cheaper than the 1.84 times sales valuation on Astronics' own shares. Plus, Astronics assures investors that PECO is earning EBITDA margins "consistent with Astronics' past performance," suggesting the company's new revenue stream is of just as high quality as its existing business. The deal is expected to close in June.


3 Reasons You Shouldn't Invest Like a Hedge Fund

Both AIG (NYSE: AIG  ) and Citigroup (NYSE: C  ) were in the headlines last week over the seeming flood of hedge fund managers reducing or exiting their positions with the companies. But as an individual investor, you should be thinking differently than the money managers.

In the video below, Motley Fool contributor Jessica Alling discusses the reasons your investing is different than a hedge fund's, what the hedge funds may be missing out on, and how you should think about investing as an individual.

At the end of last year, AIG was the favorite stock among hedge fund managers. Have they identified the next big multi-bagger, or are the risks facing the insurance giant still too great? In The Motley Fool's premium report on AIG, Financials Bureau Chief Matt Koppenheffer breaks down the key issues that you need to know about if you want to successfully invest in this stock. Simply click here now to claim your copy, and you'll also receive a full year of key updates and expert analysis as news continues to develop.

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More Expert Advice from The Motley Fool
The Motley Fool's chief investment officer has selected his No. 1 stock for the next year. Find out which stock in our brand-new free report: "The Motley Fool's Top Stock for 2013." I invite you to take a copy, free for a limited time. Just click here to access the report and find out the name of this under-the-radar company.

USD/CAD Has Been Rallying Prior To Interest Rate Decisions, Only To Fall Afterwards

Tuesday, May 28, 2013

Does Exelon Pass Buffett's Test?

We'd all like to invest like the legendary Warren Buffett, turning thousands into millions or more. Buffett analyzes companies by calculating return on invested capital, or ROIC, to help determine whether a company has an economic moat -- the ability to earn returns on its money above that money's cost.

In this series, we examine several companies in a single industry to determine their ROIC. Let's take a look at Exelon (NYSE: EXC  ) and three of its industry peers to see how efficiently they use cash.

Of course, it's not the only metric in value investing, but ROIC may be the most important one. By determining a company's ROIC, you can see how well it's using the cash you entrust to it and whether it's actually creating value for you. Simply put, it divides a company's operating profit by how much investment it took to get that profit. The formula is:

ROIC = net operating profit after taxes / Invested capital

(Get further detail on the nuances of the formula.)

This one-size-fits-all calculation cuts out many of the legal accounting tricks (such as excessive debt) that managers use to boost earnings numbers, and it provides you with an apples-to-apples way to evaluate businesses, even across industries. The higher the ROIC, the more efficiently the company uses capital.

Ultimately, we're looking for companies that can invest their money at rates that are higher than the cost of capital, which for most businesses is between 8% and 12%. Ideally, we want to see ROIC above 12%, at a minimum, and a history of increasing returns, or at least steady returns, which indicate some durability to the company's economic moat.

Here are the ROIC figures for Exelon and three industry peers over a few periods.



1 Year Ago

3 Years Ago

5 Years Ago






Southern (NYSE: SO  )





Duke Energy (NYSE: DUK  )





Dominion Resources (NYSE: D  )





Source: S&P Capital IQ. TTM=trailing 12 months.

Dominion Resources has the highest returns on invested capital at 5%, and it has maintained returns close to those rates over the past five years. Exelon and Duke Energy both offer 3% or so returns on invested capital. While Duke has managed to keep its returns close to the 3% range over the past five years, Exelon's returns have steadily declined over the five-year period. Southern has performed a bit better, but it too has seen ROIC decline over the past five years.

Exelon has exposure to a wide range of energy sources, including nuclear, renewable, and fossil-fuel energy. This helps shelter the company from declines in demand for a particular energy source. For example, new regulations requiring coal-fired plants to convert to gas-fired plants initially looked like they would deal a much larger blow to companies like Southern and Duke, which relied heavily on fossil fuels, than it did to the more diversified Exelon.

However, significant declines in natural gas prices later allowed these rivals to lower production costs to make up for the expenses associated with these conversions, which undermined Exelon's competitive advantage. Increased demand related to lower natural gas prices has also helped Dominion as it delivers natural gas to individual consumers through its utility business and transports and stores natural gas through its pipelines and storage systems.

Businesses with consistently high ROIC show that they're efficiently using capital. They also have the ability to treat shareholders well, because they can then use their extra cash to pay out dividends to us, buy back shares, or further invest in their franchise. And healthy and growing dividends are something that Warren Buffett has long loved.


There are many different ways to play the energy sector, and The Motley Fool's analysts have uncovered an under-the-radar company that's dominating its industry. This company is a leading provider of equipment and components used in drilling and production operations, and poised to profit in a big way from it. To get the name and detailed analysis of this company that will prosper for years to come, check out the special free report: "The Only Energy Stock You'll Ever Need." Don't miss out on this limited-time offer and your opportunity to discover this under-the-radar company before the market does. Click here to access your report -- it's totally free.

Should I Buy Smiths Group?

LONDON -- For a country that is said to have lost its industrial base, there are plenty of flourishing engineering companies in the FTSE 100, such as £5.2 billion Smiths Group  (LSE: SMIN  ) . This is more than an engineer, it's a global technology business whose five divisions cover everything from contraband detection to medical devices, energy and communications. Should I buy it?

Smiths Group has just published a market-pleasing interim management statement, showing rising underlying revenue across all five of its divisions in the nine months to May 4. Underlying headline operating profit also rose, as did headline operating margin, with the exception of Smiths Medical, where profits have been knocked by a new U.S. medical device tax, and substantial investment in sales and marketing.

Cautious investment
Investor enthusiasm has been tempered by recent management caution, which has been warning of tough trading conditions to come, and loss of revenues due to government spending cuts. Yet the share price has had a solid 12 months, rising 32% against 24% for the FTSE 100 as a whole. Over three years it has slightly underperformed, rising 28% against 32% for the index. Investors can't complain, but they won't be breaking out the bubbly either.

Smiths Group is bagging a steady supply of new contracts. Recent wins include a €17.8 million deal to supply Azerbaijan customs with high-energy cargo scanners, an order to supply 10 Spanish airports with 120 high-speed x-ray scanners, and a two-year contract to provide £18m of biological testing equipment to the Ministry of Defence. As with many FTSE stalwarts, it is making faster progress overseas, with emerging market sales recently rising 9% to represent 15% of group revenues. Management reckons it can deliver "significant opportunities to generate value for shareholders over the medium-term".

Go for growth
At £13.35 a share, Smiths Group is valued at 14.6 times earnings. Its 2.8% yield is below the FTSE 100 average of 3.4%, although it is covered 2.4 times, which gives scope for further progression. In March, management hiked the dividend 6% to 12.5 pence. Credit Suisse and JP Morgan Cazenove have just reiterated their respective outperform/overweight ratings with target prices of £14.20 and £15, which confirms my view that Smiths Group is a solid portfolio hold, if hardly a raging buy.

There are more exciting growth opportunities out there. Motley Fool analysts have found what they believe is the single best U.K. growth stock of this year. That's why they have named it Motley Fool's top growth stock of 2013. To find out more, download our free report. It won't cost you a penny, so click here now.


An Organic Opportunity for Campbell's Stock

While Campbell Soup's (NYSE: CPB  ) stock has jumped 44% over the past year and is 30% higher so far in 2013, profit growth has been a much more tepid 6% over the last five years, like a bowl of soup left too long on a windowsill to cool off. That's why its purchase of organic baby foods and snacks maker Plum Organics holds the promise of getting sales and earnings back to a rolling boil.

The niche is hot, growing at 43% annually and already having become a $2 billion industry. Plum itself has followed that trajectory from its founding in 2007 to quickly become the No. 2 organic baby food in the U.S. and the No. 4 overall baby food brand, with $93 million in sales last year. The acquisition will push Campbell over $1 billion in revenue for its kid-centric food and drink menu, though not all of it is organic, or even mostly.

Whereas organic foods generally account for only about 4% of total U.S. food sales, organic baby food represents more than one-fifth of the segment, according to Hain Celestial (NASDAQ: HAIN  ) , which took a dive into the market itself with its acquisition of Ella's Kitchen earlier this month, adding it to its growing portfolio of organic businesses. That was followed by yogurt maker Danone, which also made a big splash, buying 92% of Happy Family, another leading U.S. maker of organic baby food.

Nestle's Gerber Foods is still the industry giant with more than 50% of the market share in baby food, and is the leader as well in the snack pouch space, where organics tend to thrive, but its focus is much broader, and that gives smaller players like Plum an opportunity to keep growing. And to that extent it's been very successful, with 86% of its product launches getting into the top third of the categories it enters.

It's clear that Campbell is not the only company that's noticed this trend, and its rivals have equally large marketing muscle, but as a purveyor of foods already seen as generally healthy and wholesome, its branding potential ought to allow investors to realize substantial gains for their own portfolios that are "mmm-mmm good."

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

Russell 1000 Dividend Portfolio That Has Outperformed By A Big Margin

I tried to create a dividend stock portfolio that can outperform the market by a big margin. The following screen shows such promise. I have searched for profitable companies that are included in the Russell 1000 index with dividend yield and dividend growth rate that are greater than their industries' dividend yield and dividend growth. Those companies would have to show also a strong earnings growth prospects, and their last five years earnings growth is greater than their industries' earnings growth.

Russell 1000 Index

Description from Russell Investments:

The Russell 1000 Index measures the performance of the large-cap segment of the U.S. equity universe. It is a subset of the Russell 3000® Index and includes approximately 1000 of the largest securities based on a combination of their market cap and current index membership. The Russell 1000 represents approximately 92% of the U.S. market.

The screen's method requires all stocks to comply with all following demands:

Dividend yield is greater than the dividend yield of the industry.The payout ratio is less than 100%.The annual rate of dividend growth over the past five years is greater than the dividend growth of the industry.Average annual earnings growth estimates for the next 5 years is greater than 10%.Average annual earnings growth for the past 5 years is greater than the average annual earnings growth of the industry.The 8 stocks with the highest yield among all the stocks that complied with the first five demands.

I used the Portfolio123's powerful screener to perform the search and to run back-tests. Nonetheless, the screening method should only serve as a basis for further research. All the data for this article were taken from Portfolio123.

After running this screen on May 21, 2013, before the market open, I discovered the following eight stocks: Sunoco Logistics Partners LP (SXL), Leggett & Platt Inc (LEG), Copa Holdings SA (CPA), RPC Inc. (RES), Tupperware Brands Corp (TUP), Herbalife Lt! d (HLF), John Wiley & Sons Inc. (JW.A) and C.H. Robinson Worldwide Inc. (CHRW).

The table below presents the eight companies, their last price, their market cap and their industry.

(click to enlarge)

The table below presents the dividend yield, the payout ratio, the annual rate of dividend growth over the past five years, the trailing P/E, the forward P/E and the PEG ratio for the eight companies.

(click to enlarge)


In order to find out how such a screening formula would have performed during the last year, last 5 years and last 14 years, I ran the back-tests, which are available by the Portfolio123's screener.

The back-test takes into account running the screen every four weeks and replacing the stocks that no longer comply with the screening requirement with other stocks that comply with the requirement. The theoretical return is calculated in comparison to the benchmark (S&P 500), considering 0.25% slippage for each trade and 1.5% annual carry cost (broker cost). The back-tests results are shown in the charts and the tables below.

One year back-test

(click to enlarge)

Just a matter of curiosity, the table below presents the eight companies originated by the screen formula one year before, on May 19, 2012.

Five years back-test

(click to enlarge)

The table below presents the eight companies originated by the screen formula five years before, on May 20, 2008.

Fourteen years back-test

(click to enlarge)

The table below presents the eight companies originated by the screen formula fourteen years before, on March 27, 1999.


The Russell 1000 good-yielding screen has given much better returns during the last year, the last five years and the last 14 years than the S&P 500 benchmark. The Sharpe ratio, which measures the ratio of reward to risk, was also much better in all the three tests. The one year return of the screen was exceptionally high at 56.36% while the return of the S&P 500 index during the same period was at 27.120%. The difference between the Russell 1000 good-yielding screen to the S&P 500 benchmark was much more noticeable in the 14 years back-test. The 14-year average annual return of the screen was at 13.55% while the average annual return of the S&P 500 index during the same period was only 2.14%. Although this screening system has given superior results, I recommend readers use this list of stocks as a basis for further research.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. (More...)

Monday, May 27, 2013

A Hidden Reason Brady's Future Looks Bright

Is Now the Time to Buy Serco Group?

LONDON -- I'm always searching for shares that can help ordinary investors like you make money from the stock market.

So, right now, I am trawling through the FTSE 100 and giving my verdict on every member of the blue-chip index. Simply put, I'm hoping to pinpoint the very best buying opportunities in today's uncertain market.

Today I am looking at Serco Group  (LSE: SRP  )  to determine whether you should consider buying the shares at 610p.

I am assessing each company on several ratios:

Price-to-earnings (P/E): Does the share look good value when compared against its competitors?

Price/earnings growth (PEG): Does the share look good value factoring in predicted growth?

Yield: Does the share provide a solid income for investors?

Dividend cover: Is the dividend sustainable?

So let's look at the numbers:

Stock Price 3-yr EPS growth Projected P/E PEG Yield 3-yr dividend growth Dividend cover
Serco Group 610p 55% 14 2.8 1.7% 37% 4.2

The consensus analyst estimate for next year's earnings per share is 43.6p (5% growth) and dividend per share is 11.7p (16% growth).

Trading on a projected P/E of 14, Serco appears cheaper than its peers in the support services sector, which are currently trading on an average P/E of around 19.

Serco's P/E and steady growth rate give a PEG ratio of around 2.7, which implies the share price is expensive for the near-term earnings growth the firm is expected to produce.

Offering a 1.7% yield, Serco's dividend yield is below the sector average of 2.2. However, Serco has a three-year compounded dividend growth rate of 37%, implying the yield could soon catch up to that of its peers.

Indeed, the dividend is more than four times covered by earnings, giving Serco plenty room for further payout growth.

So, is now the time to buy Serco?
Serco is a leading international service company that delivers essential services for organisations around the world, such as, traffic management systems, software support for government agencies and the operation of London's docklands light railway.

Like its peer, Capita Group, Serco's services have been in demand over the past few years, as organisations have turned to the company, trying to reduce their costs by outsourcing operations.

Indeed, thanks to this switch to outsourcing, 2012 was a record year for Serco as the company won £5.8bn in new contracts, and profits jumped by 27%.

Furthermore, many City analysts believe that the company's growth is set to continue over the next few years, with analysts predicting that the company's earnings will grow 5% this year, and 10% in 2014.

Additionally, it appears that the company is on-track to achieve these lofty growth targets because, at the end of December 2012, the company's order pipeline stood at just over £19bn, and the company had revenue visibility of 92% for 2013, and 79% for 2014 -- indicating that the company has confirmed the majority of its revenue for the next two years.

So, overall, based on Serco's steady rate of historic growth, strong bid pipeline, and current discount to sector peers, I feel that now looks to be a good time to buy Serco at 610p.

More FTSE opportunities
As well as Serco, I am also positive on the five FTSE shares highlighted within this exclusive wealth report.

Indeed, all five opportunities offer a mix of robust prospects, illustrious histories and dependable dividends, and have just been declared by the Fool as "5 Shares You Can Retire On"!

Just click here for the report -- it's free.

In the meantime, please stay tuned for my next verdict on a FTSE 100 share.

Carl Icahn Is Going to Lose a Lot of Money on This One

In a recent filing with the SEC, Carl Icahn revealed that he has increased his stake in speech-to-text software maker Nuance Communications (NASDAQ: NUAN  ) to nearly 11%. He did this after Nuance reported disappointing earnings and deeply disappointing Q3 guidance, and the stock plunged to new levels of cheapness.

But is Nuance stock cheap for a reason? Fool contributor Rich Smith thinks Icahn is making a big mistake in buying into this company -- maybe even as big as his mistake when he bought into Blockbuster. Listen in, and find out why.

Speech recognition is yet another nascent technology set to explode with the rise of tablets and smartphones, and no company is better poised to benefit from this coming boom than Nuance Communications. However, this growth story doesn't come without risks, too. The Motley Fool recently published a premium research report to break down what investors interested in Nuance absolutely have to understand before investing, so click here now to grab your copy today.

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More Expert Advice from The Motley Fool
The Motley Fool's chief investment officer has selected his No. 1 stock for the next year. Find out which stock in our brand-new free report: "The Motley Fool's Top Stock for 2013." I invite you to take a copy, free for a limited time. Just click here to access the report and find out the name of this under-the-radar company.

Best Diversified Bank Stocks To Invest In Right Now

Warren Buffett has joined Twitter.

Welcome, Warren!

If you've been living under a rock for the last few years, Twitter is a micro-blogging site where people can share a sentence or two of text at a time for the world to see. It's usually a link, or quote, or a statistic, or just a a quick thought.

Here's Buffett's first Tweet:

Warren is in the house.

-- Warren Buffett (@WarrenBuffett) May 2, 2013


No one knows how much Buffett will be Tweeting, or what he might Tweet about.

But here's what we know: If the essence of Tweeting is to share smart, pithy -- and often witty -- one-liners, Warren is basically the original Tweeter. He's been making smart points while making people laugh for years.�

Consider some of our favorite Buffett quotes:�

Best Diversified Bank Stocks To Invest In Right Now: Consolidated Communications Holdings Inc.(CNSL)

Consolidated Communications Holdings, Inc., together with its subsidiaries, provides telecommunications services to residential and business customers in Illinois, Texas, and Pennsylvania. Its telecommunications services include local and long-distance services, high-speed broadband Internet access, standard and high-definition digital television, digital telephone services, custom calling features, private line services, carrier access services, network capacity services over its regional fiber optic network, and competitive local exchange carrier (CLEC) services. The company also offers telephone directory publishing services, wholesale transport services on its fiber-optic network in Texas, billing and collection services, inside wiring services, and maintenance services. In addition, it provides automated calling services for correctional facilities; and sells and supports telecommunications equipment, such as key, private branch exchange, and IP-based telephone system s to business customers in Texas and Illinois. The company serves residential customers, and universities and hospitals, as well as retail, commercial, light manufacturing, and service industry accounts in Illinois; manufacturing and retail industries, hospitals, local governments, and school districts in Texas; and small to mid-sized businesses, educational institutions, and healthcare facilities in Pennsylvania. As of December 31, 2011, it had 227,992 local access lines, 110,913 digital subscriber lines, 34,356 Internet protocol digital television subscribers, 9,199 voice over Internet protocol, and 89,774 CLEC access line equivalents. The company was founded in 1894 and is headquartered in Mattoon, Illinois.

Best Diversified Bank Stocks To Invest In Right Now: Yamana Gold Inc Com Shs Npv(YAU.L)

Yamana Gold Inc. engages in the exploration, development, and production of mineral properties, primarily gold. It also explores for copper, molybdenum, zinc, and silver metals. The company?s property portfolio includes seven operating gold mines, including Chapada mine, Jacobina mining complex, and Fazenda Brasileiro mine in Brazil; El Pe耋n mine and Minera Florida mine in Chile; Gualcamayo mine in Argentina; and Mercedes mine in Mexico. It also has a 12.5% indirect interest in the Alumbrera copper/gold/molybdenum mine in Argentina, as well as holds interests in various advanced and near development stage projects and exploration properties in Brazil, Chile, and Argentina. Yamana Gold Inc. was founded in 2003 and is headquartered in Toronto, Canada.

Best Recreation Stocks To Invest In Right Now: (MOSERBAER.NS)

Moser Baer India Limited engages in the manufacture and sale of optical storage media in India and internationally. The company offers a range of optical storage media products, which include recordable compact discs, rewritable compact discs, recordable digital versatile discs (DVD), rewritable DVD?s, and blue laser discs. It also provides solar power products, including photovoltaic cells, crystalline cells and modules, and thin films. In addition, the company offers home entertainment products, such as pre-recorded disks of home video titles in various Indian languages. It has rights for approximately 10,000 titles in all the languages. Further, the company provides information technology peripherals comprising USB drives, memory cards, DVD writers, PC peripherals, TFT Monitors, UPS, and external hard drives; and consumer electronics, which consist of LCD TVs, DVD players, portable DVD players, digital photo frames, media players, and multimedia speakers. Moser Baer Ind ia Limited was founded in 1983 and is headquartered in New Delhi, India.

Advisors' Opinion:
  • [By Glenn]

    Moser Baer is the indeed the world’s second largest manufacturer of optical storage media and they have also embarked on manufacturing of Photo-voltaic cells, with the intent of providing reliable solar power as a competitive non-subsidized source of energy. In the light of continually rising demand for solar energy, the company is planning to expand its current capacity from 125 MW to 315 MW during 2010.

    It is planning to capture overseas solar market like USA and expanding its European business to countries like France, Italy, Bulgaria and Czech Republic and Greece. Being pioneer in this segment, Moser Baer is well positioned to seize these opportunities and the company is expected to emerge as a giant enterprise in the foreseeable future.