91% of Americans Own Cell Phones, Study Finds

NEW YORK (TheStreet) -- A new study from the Pew Internet and American Life Project bolsters the view that cell phones and smartphones are everywhere. According to the group's just-released study, 91% of American adults own a cell phone and more than 55% of those devices are smartphones.

We've come a long way in a relatively short period of time. Just 20 years ago -- the dawning of 1991 -- cell phones were very expensive, high-end devices. The hot ticket back then was Motorola's (Motorola is now owned by Google (GOOG)) MicroTAC flip-phone. And trying to burst onto the scene was IBM's (IBM) revolutionary "Simon," which was touted as a mobile phone, PDA, pager and portable fax machine you could carry with you.

In 2013. our portable phones are much more versatile and pervasive, The Pew study found: 81% of cell phone owners send or receive text messages 60% of cell phone owners access the Internet 52% send or receive email 50% download apps 49% get directions, recommendations, or other location-based information 48% listen to music 21% participate in a video call or video chat 8% "check in" or share their location

Overall, texting, accessing the Internet and sending and receiving email remain very popular. Half of all of cell phone owners download apps, up from only 22% in 2009. The research also determined that age, race, education and household income all affect levels of cell phone ownership. Hispanic Americans are more likely to own cell phones (87%) than non-Hispanic black (85%) or non-Hispanic white (79%) users. More than 90% of those 18 to 49 years old own cell phones compared to 75% of those 50-64 and only 35% of those older than 65. Those who have attended or finished college were more likely (85 to 86%) to own phones compared to high school grads (77%), and families with household yearly incomes of more than $50,000 were more likely to own a cell phone. The results of the Pew group's report are based on data from telephone interviews conducted by Princeton Survey Research Associates International from April 17 to May 19, 2013, among a sample of 2,252 adults, 18 and older. --Written by Gary Krakow in New York. >To submit a news tip, send an email to: tips@thestreet.com.

Hot Value Companies To Watch For 2014

The recent good news about Fannie Mae Fannie Mae and Freddie Mac Freddie Mac�� $10 billion profit for the second quarter follows similar previous reports and is being hailed as justification for the government�� seizure and bailout of the two mortgage giants. More important, it is redemption for Barney Frank and others in Congress who encouraged them to guarantee subprime mortgages to unqualified borrowers, which lead to the housing collapse in 2008.

In fact, the two organizations have repaid $146 billion of the $188 billion advanced to them since they were taken over. In addition, some $90 billion of ��rofits��were paid to the Treasury that went toward U.S. debt and deficit reduction.

What a wonderful result��r maybe, not.

Does anyone remember that the biggest buyer of Fannie and Freddie mortgages is none other than the Federal Reserve Bank, a  government organization that has no bottom line profit measure. The Fed, with its quantitative easing program, is simply buying $40 billion monthly in packaged mortgage MBS securities valued at prices that are giving Fannie that wonderful profit.

Hot Value Companies To Watch For 2014: Schlumberger N.V.(SLB)

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

Advisors' Opinion:

• [By Rich Duprey]

  But with two agencies seemingly giving the procedure a green light to continue, the Justice Department is stepping in to investigate supposed anticompetitive practices. Halliburton (NYSE: HAL  ) , the favorite whipping post of environmental activists, is the industry leader, with an estimated 29% share of the pressure pumping market, while Baker Hughes had a 4% share.�Schlumberger (NYSE: SLB  ) , which is the second biggest services provider with a 21% share, hasn't said whether it's received any inquiries from the government.

Hot Value Companies To Watch For 2014: Dollar Tree Inc.(DLTR)

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

Advisors' Opinion:

• [By Lawrence Meyers]

  The finance sector, as mentioned, can make money in many ways. The second-highest growth sector is expected to be consumer discretionary, with a 6.2% increase. When you look at earnings from luxury brands like Tiffany & Co. (TIF), and that the hotel sector continues to do very well, it suggests that those people who are in good financial shape are spending their money. Meanwhile, dollar players like Dollar Tree (DLTR) continue to perform very well, suggesting that folks with less money are spending it on cheaper items.

• [By Jon C. Ogg]

  Deutsche Bank is making a change in its coverage of dollar store themes on Monday: Dollar Tree Inc. (NASDAQ: DLTR) was raised to Buy from Hold and Family Dollar Stores Inc. (NYSE: FDO)�was downgraded to Hold from Buy, but the price target was raised to $74 from $70.

• [By Paul Ausick]

  Dollar General�� share price is up less than 6% in the past 12 months, but since the beginning of the year shares have risen more than 22%. And even then, Dollar General�trails Dollar Tree Inc. (NASDAQ: DLTR) in share price growth since January 1. Dollar Tree stock is up 30%.

Top Dividend Stocks To Buy 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 Ben Levisohn]

  Is Caterpillar (CAT) really in the Dow? The beaten down industrial stock has gained 3.1% to $89.95 today, more than one percentage point more than Alcoa (AA), the next biggest winner with a 1.9% gain. The Travelers Companies (TRV) has gained 1.9% to $81.99, and 3M (MMM) has climbed 1.5% to $116.78. The Dow Jones Industrial Average has risen 0.9%.

  To put Caterpillar’s gain in perspective, its the stock’s largest jump since May 3, when it rose 3.2%. And with time still remaining today, it could advance even higher.

  We’ll chalk the big move up to the better economic news out of China last night, as well as sentiment that the global economy is picking up steam. The Caterpillar is also an industrial stock, and those are pretty popular right now.

  I wouldn’t make too much of the move just yet, however. For starters, Caterpillar has been stuck in a range since March, as the following chart shows:

  And, as Morgan Stanley reminded investors last week, the market might be expecting too much from Caterpillar. On Sept 5, analyst�Nicole DeBlase and team wrote:

  While we agree that Mining destocking activity should cease, we see risk to Construction restocking based on our survey work ��41% of both US and China Construction dealers still think inventory is too high, and plan to reduce throughout the remainder of 2013e. Should Construction activity not pick up materially in early 2014e, we see the potential for this to remain a headwind next year ��but we do still give CAT credit for 5ppts of top-line Construction benefit from restock in 2014e. We are more bearish on Mining CapEx as we do not expect the second derivative of cuts to turn positive until 2016e.

  Mogran Stanley initiated the stock as an Equal Weight with an $89 price target.

Hot Value Companies To Watch For 2014: Tupperware Corporation(TUP)

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

Advisors' Opinion:

• [By John Udovich]

  Everyone is familiar with�the Tupperware brand from�consumer products stock Tupperware Brands Corporation (NYSE: TUP) and you are probably familiar with the brands�of mid cap stock Jarden Corp (NYSE: JAH) along with small cap stocks Libbey Inc (NYSEMKT: LBY) and Lifetime Brands Inc (NASDAQ: LCUT); but what about the stocks themselves? Chances are, their brands or products are right under your nose at home and you probably don�� know anything about the mid cap or small cap stock behind them.

• [By Oliver Pursche]

  European large-cap pharmaceuticals like Novartis (NVS) �and Bristol Meyers Squibb (BMY) �count amongst some of our favorite stocks right now, as do U.S. multinationals that are growing revenue and margins in Asia ��Tupperware (TUP) �is a shining example. Stay away from utilities and energy stocks, as they are likely to be the laggards over the next year.

Boeing’s Next-Gen Dreamliner to Debut This Week

Sources tell Reuters that Boeing‘s (BA) latest edition to its 787 Dreamliner family could make its first flight sometime next week. Boeing shares surged more than 2% on the news.

The 787-9 is 20 feet longer than the 787-8 Dreamliners currently in service and can travel farther without refueling. The new jet can accommodate 40 more passengers that current 787s. Manufacturing of the first 787-9 was completed in Washington in August, according to Boeing. Two more 787-9s will soon be finished.

United Airlines Accidentally Sells ‘Free’ Tickets

Airlines that purchase the new jet will face a list price of $243.6 million per jet. The current Dreamliner has a list price of $206.8 million per plane.

Boeing is scheduled to deliver the first 787-9 to Air New Zealand around the middle of next year. An even longer version of the Dreamliner — the 787-10 — will arrive in 2018, though that jet won’t be able to travel as far without refueling.

The entire Dreamliner fleet was grounded by worldwide aviation regulators earlier this year after a series of problems was linked to its lithium-ion batteries.

Boeing developed a containment system to prevent battery over-heating and fires, allowing the jets to return to the skies during the spring.

Sector ETF Reaction to the U.S. Budget Impasse

NEW YORK (ETF Expert) -- Since the "no-taper" euphoria has passed, U.S. stock assets have been falling, though the declines have been modest. Most investors continue to believe that a last-minute deal will be struck and that a bearish retreat like the 2011 correction is improbable.

Nevertheless, different economic sectors appear to be responding differently to the current landscape. While previous blueprints for budget uncertainty may have favored non-cyclical segments such as health care and consumer staples, old-school rules may not be applicable.

Sector Performance During 5-Day Downturn
						Approx %
SPDR Select Sector Technology (XLK)						-0.6%
SPDR Select Sector Industrials (XLI)						-0.7%
SPDR Select Sector Utilities (XLU)						-0.9%
SPDR Select Sector Energy (XLE)						-1.0%
SPDR Select Sector Consumer Discretionary (XLY)						-1.1%
SPDR S&P 500 (SPY)						-1.2%
SPDR Select Sector Healthcare (XLV)						-1.9%
SPDR Select Sector Materials (XLB)						-1.9%
SPDR Select Sector Consumer Staples (XLP)						-2.3%
SPDR Select Sector Utilities (XLF)						-2.3%

Granted, assets like SPDR Select Sector Materials and SPDR Select Sector Financials may be following the risk-off rules of investment anxiety. Nevertheless, it is rare to find safer havens like Health Care and Consumer Staples near the bottom of the barrel. Equally strange, it is a bit ironic to find economically sensitive Industrials at the top of the leaderboard, let alone a volatile segment like Technology.

Since the budget impasse has been tied to Obamacare, I suspect some of the selling in XLV may be associated with uncertainties here. And perhaps the move away from Consumer Staples is related to an expensive sector with poor earnings prospects. Yet I am still surprised how Energy, Industrials and Tech can lead the pack in the face of rancorous non-negotiations as well as subdued profit expectations. Warren Buffett recently claimed that he is having a difficult time finding anything to buy. What's more, he is sitting on $49 billion in cash. Should we call this "de facto market timing?" If Buffett cannot find anything to purchase -- if the Oracle of Omaha maintains that he does not see bargains after a four-and-a-half year run-up -- why are economically sensitive conglomerates in the Industrials space holding up so well? It would be tough to argue that Industrials are inexpensive with a trailing P/E of 18.9, an optimistic Forward P/E of 16.4 and a price-to-book (P/B) of 3.3. Courtesy of StockCharts.com Investors should also be mindful of the fact that, even if the flatness of corporate revenue is of little concern these days, and even though short-term solutions for the budget as well as the debt ceiling are likely to emerge, the Federal Reserve's "no-taper" decision probably injected even more uncertainty into the investing picture. Whereas some believe the decision to wait was a pleasant surprise, it only raised doubts surrounding Federal Reserve communication. Now, nobody really knows what to expect from the Fed; now, central bank decisions are not merely data-dependent, they're also dependent on political outcomes. For example, does the market now believe the Fed will keep on "keeping on." Long-dated bonds are having a splendid week, with Vanguard Extended Duration (EDV) logging 3.1% and iShares 20 Year Treasury (TLT) pocketing 1.7%. This could have as much to do with the budget impasse as anything else, but the truth is, the Fed's efforts at enhanced communication has only led to greater ambiguity. I remain committed to equities, with allocations to highly liquid ETFs such as Vanguard Dividend Growth (VIG), Vanguard International ex U.S. (VEU) and iShares Small Cap Value (IJS). I am also "overweight" tech at this time with funds like Vanguard Information Technology (VGT) or First Trust Nasdaq Tech Dividend (TDIV). That said, like Mr. Buffett, I have been patient for months with some cash on the sidelines. I would be willing to buy into meaningful market weakness. However, if long-term trends break and stop limit loss orders hit, clients may have even more cash to protect against catastrophic bear market losses. Follow @etfexpert This article was written by an independent contributor, separate from TheStreet's regular news coverage.

Second wave of VA buyout offers comes from Axa

Advisers and clients are getting Axa Equitable Life Insurance Co.'s second wave of variable annuity buyout offers — and the verdict is mixed.

Back in July, the insurer filed an offer with the Securities and Exchange Commission, giving a certain group of clients who own its Accumulator variable annuity the option to terminate their guaranteed-minimum-income benefit, guaranteed-minimum death benefits and earnings enhancement benefit features. In exchange, these customers would get an increase in their account value, plus the opportunity to withdraw the entire amount free of surrender fees.

The offer is voluntary, and clients can choose to keep their contracts and features.

The size of the increase would be based on the client's life expectancy, the current and projected account value, today's interest rates and the current and projected value of the guaranteed benefits. In general, clients can expect to be offered about 70% of the actuarial valuation of the reserves for the GMIB and GMDB, or two times the annual fees for the GMIB, GMDB and the EEB, based on the current benefit base — whichever is greater. Notably, though, the offer will vary day to day and will be based on market conditions.

According to the filing, the offer was made to clients with Accumulator variable annuity contracts issued between 2004 and 2009.

Details are scarce about the terms of the income benefits that are on the table, with what's in the market these days. Axa's income feature included roll-up rates — the rate of growth the insurer would credit to the base used to determine an income stream — of up to 6.5%. These days, the norm for roll-up rates is closer to 5% and below.

A call to Axa spokeswoman Discretion Winter was not immediately returned.

Advisers traditionally have pushed back against these offers, encouraging clients to stay in their contracts, particularly if there is a significant difference between the size of the benefit base and the actual account value. It would be hard to find similar guaranteed features on today's annuities.

But for some clients, the gap between the value of the income and the amount in the account has shrunken significantly. Those clients may come reasonably close to breaking even, noted Michael L. Rosenberg, an adviser at Diversified Investment Strategies LLC. Whether they leave depends on the clients' objectives, their time horizons and whether there are attractive alternatives out there.

“That's what people have to face: If you don't want the money [in a lump], then take the income,” Mr. Rosenberg said. “Unlike past buyouts, which were mostly on death benefits, this is real money.”

Lisa A. Schomer,! an adviser with LPL Financial LLC, so far had one client come in to discuss an offer. Given that the client is in his 50s and has a 6.5% GMIB benefit, she will likely tell him to stick with the contract. “I would be more apt to say that we stay with the benefit, but if his time frame or goals for this portion of the portfolio have changed, we'll re-evaluate it,” she said.

Mitchell Kauffman, managing director of Kauffman Wealth Services, not only has clients who have received the offer, but wound up getting one himself for an Axa contract he owns. “Given what Axa is offering, and comparing it to other products in the marketplace, the recommendation has been to not accept the offer,” he said.

The $13,000 offer Mr. Kauffman received for his $242,000 contract would leave him about $1,000 shy of his income benefit base's value. Axa also offered to waive a $6,000 surrender fee if he were to liquidate the contract.

The adviser decided to stay put.

“It seemed that everything is opportunity cost: What can you do with the money that's better?” Mr. Kauffman said. “The structure is so much better than anything we can replace it with that I am hard-pressed to recommend that people take it.”

Hey, Marissa: How About Spreading Around That Alibaba Windfall?

Popular Posts: 5 Dividend Stocks Perfect for New Money3 ‘Big Bang’ Income StocksMSFT, MCD Deliver: 17 Companies Increasing Dividends Recent Posts: Hey, Marissa: How About Spreading Around That Alibaba Windfall? Not Happy With Your 401k? Say Something. 3 ‘Big Bang’ Income Stocks View All Posts

Dear Ms. Mayer,

I’m Marc Bastow, a Yahoo (YHOO) shareholder as of January. I bought into YHOO back in January — partly because I believed the company had untapped potential in the online world, but mostly because I felt your charisma and marketing vision would carry Yahoo toward a better future (and stock price).

For the record, I’m thrilled so far. YHOO is up nearly 60% since I bought in, and my doubting colleague Jeff Reeves just shakes his head every time I bring it up.

But with my chips still on the table, I’d like to ask you a favor: When the Alibaba IPO goes live and your 24% stake translates into billions of dollars … do you mind spreading some of that around via a special dividend?

Hear me out:

I realize that a lot of the momentum in Yahoo stock has been built on Alibaba’s success, so once it completes its IPO, you won’t have that regular influx from the Chinese e-commerce business. You know, the portion you get from quarters like Alibaba’s Q1, in which it raised $1.38 billion in revenue and $668 million in profit.

Still, estimates say the IPO could raise as much as $15 billion, which would make your stake worth up to $3.6 billion — which would give you room to both thank shareholders now and plan for the future.

I know you’re probably itching to put some of that to work in acquisitions, but you’ve already made 15 deals since May alone — including a $1.1 billion deal for Tumblr — so it’d probably be prudent to start digesting those deals instead.

I know you might be thinking about stock buybacks, but I’m not a huge fan. Yes, you can play the earnings game by slashing shares and thus EPS, but let’s face it — companies often buy at the wrong time anyway. If that money’s going to be mismanaged, I’d rather it be by my own hand once I’ve cashed the dividend check.

I’m not advocating something quite on the scale of what AOL (AOL) did with the proceeds of its patent sale to Microsoft (MSFT) — in which AOL dumped the whole $1.1 billion between dividends and buybacks. But even spending roughly a third of that money ($1 billion) would result in a $1 per share special dividend, which would be an extra 3% boost to shareholders’ annual return.

Again — you’ve done plenty to filter the cash through buybacks and M&A. But sometimes, shareholders want something a little more direct.

Sincerely,

Marc Bastow, Assistant Editor at InvestorPlace.com, who still was long YHOO as of this writing.

Hot Stocks To Watch For 2014

If you're a serious investor in dividend stocks, you know that a high yield alone simply isn't enough. You have to know that a dividend is sustainable, and that the underlying company has decent prospects for the future.

One industry that investors have abandoned as having zero prospects is printing. As more and more newspapers and magazines transition to electronic formats, investors have assumed these businesses are dead.

But that may not necessarily be the case, and by investigating the situation, you may be able to buy two big dividend stocks while they're still cheap.

R.R. Donnelley & Sons (NASDAQ: RRD  )
This company, based out of Chicago, has been an industry stalwart since its founding in 1864. Back then, founder Richard Donnelley printed the precursor to the Yellow Pages for Chicago residents. �

Hot Stocks To Watch For 2014: MEMSIC Inc.(MEMS)

MEMSIC, Inc. provides semiconductor sensor and system solutions based on integrated micro electro-mechanical systems (MEMS) technology and mixed signal circuit design. It offers sensor products, principally accelerometers. The company?s sensors are used for motion, direction, and pressure sensing applications; and accelerometer products are used to measure tilt, shock, vibration, and acceleration, as well as in various applications, such as mobile phones, automotive safety systems, video projectors, global positioning systems, video gaming systems, interactive toys, inclination sensing, earthquake detection, cardiac pacemakers, and image projectors. Its system solution products include wireless sensors that connect the physical environment with enterprise management and information systems to provide monitoring, automation, and control solutions for a range of industries, as well as inertial systems that provide end-users and systems integrators with MEMS-based solutions for the measurement of static and dynamic motion in a various environments, such as avionics, remotely operated vehicles, agricultural and construction vehicles, automotive test, and wind power turbines. The company also engages in the development of multi-sensor and MCU integrated system products at the integrated circuit level for the consumer and mobile market, as well as at the module level for the industrial, automotive, and general aviation markets. It sells its products directly, as well as through systems integrators, resellers, distributors, and sales representatives worldwide. The company was founded in 1999 and is headquartered in Andover, Massachusetts.

Advisors' Opinion:

• [By Triska Hamid]

  In Abu Dhabi, researchers at the ATIC-SRC Center of Excellence for Energy Efficient Electronic Systems (ACE4S), a center jointly established by the Advanced Technology Investment Company and the Semiconductor Research Corporation, are working on the development of systems on chip (SOC) and micro-electromechanical systems (MEMs) in health care.

Hot Stocks To Watch For 2014: Idenix Pharmaceuticals Inc.(IDIX)

Idenix Pharmaceuticals, Inc., a biopharmaceutical company, engages in the discovery and development of drugs for the treatment of human viral diseases in the United States and Europe. Its primary research and development focus is on the treatment of patients with hepatitis C virus (HCV). The company?s HCV discovery program focuses on various classes of drugs, including nucleoside/nucleotide polymerase inhibitors, protease inhibitors, non-nucleoside polymerase inhibitors, and NS5A inhibitors. It develops products and drug candidates for the treatment of patients with hepatitis B virus (HBV), human immunodeficiency virus (HIV) type-1, and acquired immune deficiency syndrome (AIDS). The company principally has a collaboration agreement with Novartis Pharma AG for the development and commercialization of telbivudine, a drug for the treatment of HBV under the Tyzeka/Sebivo names. Idenix Pharmaceuticals, Inc. was founded in 1998 and is headquartered in Cambridge, Massachusetts.

Hot Warren Buffett Stocks To Watch Right Now: Gaming Partners International Corporation(GPIC)

Gaming Partners International Corporation engages in the manufacture and supply of casino table game equipment worldwide. The company offers gaming chips, such as american-style casino chips comprising injection molded chips, thermo-compression molded chips, and sublimation chips; and European-style casino chips, including jetons and plaques. It also provides playing cards; table layouts; gaming furniture consisting of tables, bases, and pit podiums; and table game accessories, such as roulette reader boards, foot rails, chip trays, drop boxes, shoes, cut cards, dice sticks, lammers, markers, buttons, and air rail system ventilation devices, as well as dice. In addition, the company offers low and high frequency RFID readers and antennas, and other products used with casino table games, such as blackjack, poker, baccarat, craps, and roulette. Further, it provides themed products for customers to promote special events, including sporting events, conventions, holidays, casi no anniversaries, and premier entertainment events. The company sells its products directly to end-users, as well as through distributors under the Paulson, Bourgogne et Grasset, and Bud Jones brand names. Gaming Partners International Corporation was founded in 1963 and is headquartered in Las Vegas, Nevada.

Hot Stocks To Watch For 2014: Alliant Energy Corporation (LNT)

Alliant Energy Corporation operates in electric and gas utility businesses in the United States. The company, through its subsidiary, Interstate Power and Light Company, engages in the generation and distribution of electric energy; and the distribution and transportation of natural gas in Iowa and southern Minnesota. As of December 31, 2009, it supplied electric and gas service to approximately 525,334 and 233,841 retail customers. Alliant Energy Corporation also provides steam services, and various other energy-related products and services to customers in Iowa. The company, through its other subsidiary, Wisconsin Power and Light Company (WPL), involves in the generation and distribution of electric energy; and the distribution and transportation of natural gas primarily in south and central Wisconsin markets. As of December 31, 2009, WPL supplied electric and gas service to 453,573 and 177,968 retail customers. In addition, Alliant Energy Corporation has investments in environmental consulting, and engineering and renewable energy services businesses. It also engages in transportation business, which includes a short-line railway for the provision of freight services between Cedar Rapids and Iowa City in Iowa; barge terminal and hauling services on the Mississippi River; and other transfer and storage services. The company was founded in 1917 and is based in Madison, Wisconsin.

Hot Stocks To Watch For 2014: F5 Networks Inc.(FFIV)

F5 Networks, Inc. provides application delivery networking technology that optimizes the delivery of network-based applications, and the security, performance, and availability of servers, data storage devices, and other network resources in the Americas, EMEA, Japan, and the Asia Pacific. The company offers BIG-IP, an application delivery controller; VIPRION, a chassis-based application delivery controller; and FirePass, an appliance that provides SSL VPN access for remote users of Internet protocol networks, and applications connected to the networks from Web browser on any device. It also offers Application Security Manager, an application firewall; WebAccelerator that speeds Web transactions by optimizing individual network object requests, connections, and end-to-end transactions from browser to databases; WAN Optimization Manager, which integrates application delivery with WAN optimization technologies; Access Policy Manager that provides secure, granular, and contex t-aware control of access to applications; Edge Gateway, a remote access product, which offers context-aware, policy controlled, and remote access to applications at LAN speed; Enterprise Manager that allows customers to discover and view company?s products in a single window; and ARX product family, a series of high performance and enterprise-class intelligent file virtualization devices. In addition, F5 Networks provides Data Manager, a software product, which interfaces with file storage devices; iControl, an application programming interface that allows customers to control their products in the network; iRules, a programming language embedded in TMOS architecture; and consulting, training, maintenance, and other technical support services. The company sells its products to enterprise customers and service providers through various channels, including distributors, value-added resellers, and systems integrators. F5 Networks, Inc. was founded in 1996 and is headquartered in Seattle, Washington.

Advisors' Opinion:

• [By Lee Jackson]

  F5 Networks Inc. (NASDAQ: FFIV) has been all over the board in the past year, trading in an almost 45 point range. Analysts around Wall Street in addition to Deutsche Bank are very positive on core growth accelerating in the second half of 2013 as data center orders build. Deutsche Bank has a $100 price objective, and the consensus target is $96.

• [By Jon C. Ogg]

  F5 Networks Inc. (NASDAQ: FFIV) was downgraded to Neutral from Buy at Goldman Sachs.

  Microchip Technology Inc. (NASDAQ: MCHP) was raised to Buy from Neutral with a $46 price target at Goldman Sachs.

• [By Lee Jackson]

  F5 Networks Inc. (NASDAQ: FFIV) had truly become an out-of-favor stock recently. It blew away earnings, and the stock responded well. Despite some continued weakness in telecom spending, the rest of the year looks very positive for the company. The consensus price objective stands at $95.

Apple Soars, Still More to Prove

Despite the fact it sold a record number of iPhones after its debut of its two newest models, MoneyShow's Jim Jubak, also of Jubak's Picks, still thinks the company has more to prove, in terms of meeting demand, if it expects to quell the skeptics.

Apple (AAPL) sold a record nine million iPhones in the weekend debut of the iPhone 5S and 5C models. That was way above the most pessimistic estimates from analysts of five million units, but also blew away optimistic Wall Street estimates of 6.5 to 7.75 million units.

And that has led the company to tell Wall Street it expects total revenue for the quarter (the fourth quarter of Apple's fiscal year) that ends on September 30 to come in at the high end of its earlier guidance of $34 million to $37 million in revenue. Gross margins, Apple said, will be near the high end of a range of 36% to 37%.

The stock closed up 4.97% yesterday. (Apple is a member of my Jubak's Picks portfolio.)

But that hasn't quieted the skeptics—nor should it. Apple still has to demonstrate that it can meet demand for the 5S, that led it to sell out in many stores over the weekend, in time to meet the end of the quarter, and in a way that doesn't damp overall sales momentum. And we still don't have numbers on sales of the cheaper 5C that tell us much of anything about how that model will sell against competing Android phones. With the 5C likely to appeal to current Android users—if it appeals to anyone—who have annual or two-year contracts on their existing phones, it will take a while before we know how much market share the 5C can claw back.

The gold 5S has emerged has a big seller, which could hurt Apple's revenue numbers for the September quarter. AT&T (T) and Verizon (VZ), for example, had said they won't be able to ship gold iPhones until October. That might well cut into the revenue that Apple can claim for the period.

In other positive news for Apple, the company said that users had downloaded the new iOS 7 mobile operating system onto 200 million devices since September 18. That's twice the number in last year's operating system upgrade.

Full disclosure: I don't own shares of any of the companies mentioned in this post in my personal portfolio. When in 2010 I started the mutual fund I manage, Jubak Global Equity Fund Jubak Global Equity Fund , I liquidated all my individual stock holdings and put the money into the fund. The fund may or may not now own positions in any stock mentioned in this post. The fund did own shares of Apple as of the end of June. For a full list of the stocks in the fund as of the end of June see the fund's portfolio here.

Don't Ignore the Euro Zone

Most US investors are fixated on domestic developments but MoneyShow's Jim Jubak points out there is an important event in the Euro zone that may have a global impact.

I know it has been hard in the first half of September to think that there is any place in the financial world that counts besides the Unites States, what with sitting there going, "What is the Fed going to do, what is the Fed going to do on September 18?" Where we are thinking about, "Is Congress going to shut down government?" "Are we going to get a big battle over the debt ceiling that might raise the issue of US default?" But there is another date out there that is really important and another continent that is really important. The continent is Europe and the date is September 22, that is the date of the German elections.

Right now it looks like Angela Merkel, who is personally very, very popular in Germany, is not going to have any trouble getting a plurality of votes, but it does not look like, with her party and her allies, that she is going to be able to get a majority in the German Parliament that is going to be some kind of coalition government. The problems she really faces is that particular coalition partners are running very, very weakly, so it is not clear what the coalition is going to be. This is an issue because there are a couple of really big looming problems after the election. One is that Greece needs another, somewhere between $5 billion and $12 billion dollars, depending on who is doing the count. The Greek Prime Minister has said that he is not willing to entertain any more austerity. The IMF, one of the big funders, was saying we cannot put any more money in until things balance. It is going to be a big issue, and for Merkel, who has been basically running on a platform that has said implicitly that we are not going to bail out Greece again, even though her Foreign Minister has said that we have to, so that needs to get resolved.

The other thing that is a bigger issue is Portugal. Portugal is about $16 billion Euros short for 2014. They are going to need a second bailout. They cannot go to the capital markets to raise all that money, it is more borrowing than the markets will sustain, so they are going to need a second bailout from Europe. It is not clear there is much political will in Portugal for more austerity. It is not clear that there is much political will anywhere in the Euro zone for that size bailout. It is going to be a really big problem, these are the things that Merkel faces after having run a campaign that basically tried to soft pedal, downplay, and ignore the issue of, "Well, what happens with the Euro, and the Euro debt crisis after the election is over?" I think after the election is over, we are going to find out.

This is Jim Jubak for the MoneyShow.com Video Network.

Apple May Take Fingerprint Security Mainstream

NEW YORK (TheStreet) -- Apple's (AAPL) new Touch ID technology may be the answer for consumers everywhere who have a tough time remembering passwords -- or whose fat fingers find tiny virtual keyboards annoying. For the security industry, this could be what finally boosts biometric technology to a mainstream audience.

"To me, I see this as an example of another opportunity for them to take a technology from high-end applications and bring it to consumers," said Philip Lieberman, president of Lieberman Software, which develops security software for businesses and governments. "It's the first time I've ever seen this level of technology in a consumer product."

Apple's knack for integrating new -- and expensive -- technologies into its products and creating mass appeal appears to be on the verge again. The sliver-thin MacBook Air's, high-resolution Retina displays and, of course, iPads, for example, are now part of our vernacular. And while the company wasn't always the first, Apple used its influence and buying power to expand the audience greatly.

Apple also has a reputation to protect, Lieberman added. "Apple has gotten beat up because people have chosen poor passwords for their Apple mail service," he said. "By having a biometric device as opposed to a password chosen by the user, it's the better way to go, especially for consumers. You don't choose a fingerprint." Biometric fingerprint readers expanded beyond science fiction and began showing up in retail stores more than 10 years ago. Some PC makers built fingerprint readers into laptops. Other companies made consumer gadgets that were more gimmicky than reliable. The technology didn't always work. Low-resolution scanners and cheap sensors resulted in limited mass appeal. Consumers weren't willing to pay for the higher quality hardware. Today, fingerprint scanners are relegated to a handful of business laptops or large companies willing to invest in high-end equipment. Apple's Touch ID, one of the most buzzed-about features in the new iPhone 5S, spares little expense and offers high-quality hardware with minimal fuss. After the initial set up, iPhone owners need only to touch the home button to unlock the phone or make a purchase on iTunes or the App Store.

Even competitors, like Bio-key, which makes fingerprint readers for mobile devices, are excited.

In an interview with Bloomberg News, Jay Meier, Bio-key's vice president of corporate development, said, "This is a momentous occasion for the biometrics industry. ...The iPhone 5S is the first broadly distributed mobile device to include a biometric sensor that really is emerging into the consumer's field of view, if you will. This is the day we've been waiting for."

Adding fingerprint security to an iPhone wasn't unexpected. Last year, Apple paid $356 million to acquire AuthenTec, which held several fingerprint-related patents and had access to high-quality hardware.

The result is a mix of hardware and software built behind the iPhone's home button, according to Apple. The exterior home button is a laser-cut sapphire crystal that protects the sensor below. The capacitive touch sensor underneath takes a high-resolution 500 dpi image of a fingerprint, which is analyzed for a match. (Cheaper fingerprint scanners have resolution around 100 to 175 dpi, while the better, commercial scanners tout resolutions of 300 to 1,000 dpi, Lieberman said.) The new iPhone also uses sub-thermal scanning to view even more details beyond just the outer print. (Watch Apple's video of Touch ID at apple.com/iphone-5s/videos/#video-touch.) The fingerprint is stored on a secure chip inside the phone and not online, allaying concerns of privacy-rights groups. There is no iPhone user fingerprint database dangling in the iCloud. But there are still unknowns about biometric-fingerprint security, said Stina Ehrensvard, CEO of Yubico, a provider of hardware security technology. "It will be interesting to see how robust the iPhone fingerprint sensor will be as there are many (of us) who have gone through customs and have experienced problems with reading our fingerprints," Ehrensvard said. "However, independent if a device is unlocked with a fingerprint or not, the concept of having a security chip in a smartphone or other hardware device to securely authenticate over the Internet is a trend supported by several IT giants." Yubico is part of the FIDO Alliance, which stands for Fast IDentity Online. The organization is working with several technology companies on new open standards enabling easier and more secure ways to login to online services. Apple is not a member.

Yubico's own technology, the YubiKey, is a USB security key that works with computers and mobile devices supporting Near Field Communication. It authenticates with a built-in security chip, a password and a physical touch. The user enters a PIN or password and then touches the device for instant access to an online service.

Google (GOOG) is using the technology for its own staff and has, together with Yubico, created Universal 2nd Factor (U2F). This is one of the FIDO standards that in the future can enable users to login with one single security key, such as the YubiKey, to any number of services, and not have to juggle complicated passwords.

Apple has always liked to do things on its own way, said Lieberman. By going the high-end hardware route and buying up AuthenTec and its patents, Apple owns the technology.

"It's always been a game of supply chain and patents. By locking up AuthenTec and high-end sensors, they now have something to block their competitors," he said. Plus, he added, Apple is smart. It won't focus on marketing the technology inside, but the feature as a status symbol. "You are no longer cool if you have to type in your passwords," he said. Follow @Gadgetress This article was written by an independent contributor, separate from TheStreet's regular news coverage.

Tamara Chuang is an outside contributor to TheStreet. Her opinions are her own. Email her at news@tamara.net and follow her on Twitter @gadgetress.

This Luxury App Takes You Window Shopping Around the World

NEW YORK (TheStreet) -- It's not exactly an idea you'd expect from two 20-somethings, dreamed up one night while cramming for final exams.

But that's how brothers Stijn and Jeroen Verrezen came up with their iPhone and iPad app, which allows users to window-shop the flagship storefronts of the world's most expensive and exclusive luxury brands.

Officially launched at the recent conclusion of fashion week in New York City, the Turnhills Window Shopping app literally puts worldwide window-shopping at your fingertips. And this is luxury window-shopping. Think Gucci, Louis Vuitton, Prada, Michael Kors and more. "The most expensive brands -- it's really unbelievable what they do with their windows -- you will see Louis Vuitton has skeletons of dinosaurs on display. It's amazing. Each time they do their window, they try to come up with something totally original. It's almost a form of art," Stijn Verrezen says during a phone interview from Belgium, where the two brothers grew up and still live. The app is actually the latest incarnation of the brother's computer-based window shopping idea; they launched a website last year. The idea is to feature regularly updated images of flagship storefronts because flagship stores typically display items available at all the other stores around the country or world for a particular brand, Stijn Verrezen says. Also see: How Lexus Is Selling Lexus Without Having to Sell Cars>> Once window-shoppers identify a must-have item in a storefront via the app, they can head to the designer's local store to try it on and buy it. Or buy the item online. "The collections are pretty much the same at your local store, but the window of the local shopping mall store is much smaller," Stijn Verrezen says. "So to get ideas about the latest trends, you can peek through brands on our app. This is like window-shopping in the real world." "Window shopping is an important aspect of real-life shopping," he adds. "And it's also of great value to the virtual shopping experience. It gives someone a first impression of a particular brand without going to the brand website." Rigorously updated, the app provides real-time content from around the world. Users can swipe through shopping districts on their iPhone or iPad to view the latest arrivals and fashion trends of 23 luxury brands.

The app also allows users to get daily updated storefronts of the most renowned brands' flagship stores, create personal wish lists of favorite items, prepare for shopping in the real world by comparing prices of items on the app and by items through linked Web-based stores.

The app's pictures of flagship storefronts are taken by professional photographers. Turnhills works with three -- two focused on New York City stores and one in London. Also see: Sears Clear on Why It's Selling Rolex: It's Taking on Amazon, eBay>>

But no fashion app would be truly complete without including a renowned fashion capital such as Paris, and that fact is not lost on the Verrezen brothers.

"The most beautiful stores of Paris will be added in two weeks," says 26-year-old Stijn Verrezen, who remains at home in Belgium at his "day job" -- at the family's business, a factory that develops sun awnings. Jeroen, 24, is in New York City promoting the app. The pair started their business on a shoestring, using personal savings, with no investors or PR reps. They are promoting their app primarily via Facebook (FB) and other forms of social media, including Pinterest. And so far, the Verrezen brothers aren't doing all that bad for themselves. Stijn estimates the app has been picking up about 150 users each day. The app can be downloaded for free from iTunes. In terms of their long-range plans, that's harder to pinpoint. For now, they brothers focused on increasing the number of luxury brands available on the app, with hopes of having 35 luxury brands featured by month's end. "We really just started out brainstorming and thought this would be a great idea to put our effort into. We're just two guys. We weren't particularly interested in fashion. It was more of a business concept," Stijn Verrezen says. "But we really like the idea of how brands create their reputation and create value."

Is Costco Still A Hot Stock?

With shares of Costco (NASDAQ:COST) trading around $115, is COST an OUTPERFORM, WAIT AND SEE or STAY AWAY? Let's analyze the stock with the relevant sections of our CHEAT SHEET investing framework:

T = Trends for a Stock’s Movement

Costco is engaged in the operation of membership warehouses in the United States and Puerto Rico, Canada, the United Kingdom, Mexico, Japan, Australia, and through majority-owned subsidiaries in Taiwan and Korea. The company's depots receive container-based shipments from manufacturers and reallocate these goods for shipment to its individual warehouses, generally in less than 24 hours. Costco's typical warehouse format averages approximately 143,000 square feet, where many products are offered for sale in case, carton, or multiple-pack quantities only.

Costco looks to increase profits this summer as consumers aim to stock up on their favorite seasonal items. However, the company is not as popular as Wal-Mart (NYSE:WMT) or Target (NYSE:TGT), which also provide general items such as sunscreen, pool gear, and bathing suits. But offering a large selection of bulk products at affordable prices makes Costco a go-to location for many shopping needs. Look for Costco to continue to provide products at sizes and prices that consumers and companies demand.

T = Technicals on the Stock Chart are Strong

Costco stock has been exploding since establishing lows in early 2009. The stock keeps going and going and is now trading near all-time high prices. Analyzing the price trend and its strength can be done using key simple moving averages. What are the key moving averages? The 50-day (pink), 100-day (blue), and 200-day (yellow) simple moving averages. As seen in the daily price chart below, Costco is trading above its rising key averages, which signal neutral to bullish price action in the near term.

(Source: Thinkorswim)

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

	Implied Volatility (IV)	30-Day IV Percentile	90-Day IV Percentile
Costco Options	17.43%	3%	0%

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

	Put IV Skew	Call IV Skew
August Options	Flat	Average
September Options	Flat	Average

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

E = Earnings Are Rising Quarter-Over-Quarter

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

	2013 Q1	2012 Q4	2012 Q3	2012 Q2
Earnings Growth (Y-O-Y)	18.18%	37.78%	30.14%	29.13%
Revenue Growth (Y-O-Y)	4.86%	8.29%	9.65%	14.34%
Earnings Reaction	-0.94%	1.27%	-0.60%	1.92%

Costco has seen rising earnings and revenue figures over the past four quarters. From these numbers, the markets have been optimistic about Costco’s recent earnings announcements.

P = Excellent Relative Performance Versus Peers and Sector

How has Costco stock done relative to its peers Wal-Mart (NYSE:WMT), Target (NYSE:TGT), Pricesmart (NASDAQ:PSMT), and sector?

	Costco	Wal-Mart	Target	Pricesmart	Sector
Year-to-Date Return	16.36%	13.60%	22.41%	14.99%	15.86%

Costco has been a relative performance leader, year-to-date.

Conclusion

Costco is a warehouse chain that sells large and bulk items to consumers looking to save an extra few bucks. The stock has been on an explosive run and is now trading at all-time high prices. Over the past four quarters, earnings and revenue figures have been on the rise, leading to optimistic investors in the company. Relative to its peers and sector, Costco has been a year-to-date performance leader. Look for Costco to continue to OUTPERFORM.

PMI Shows Manufacturing and Employment Ahead of Labor Department Data

The Markit U.S. Manufacturing PMI has released its final data for the month of August, showing a drop as output growth slowed to 10-month low. The report came in at 53.1, versus 53.7 in July and 53.9 on the flash estimate. The report signals a slower but moderate rate of manufacturing expansion. Other notes showed that the new orders increase at solid pace, while input price pressures eased and showing the second month of job creation.

Total new business rose at the fastest rate in seven months but was actually slower than the flash data. Markit said:

A slower rate of output growth was one of the factors behind the weaker improvement in operating conditions. Production rose in August, but the rate of growth was the slowest since October 2012. Consumer and intermediate goods producers reported weaker output trends, but makers of investment goods saw a stronger rate of increase.

On the jobs front, employment in the manufacturing sector rose for the second consecutive month, and the overall rate of job creation was little-changed from July. All three market groups saw an increase in staff numbers, with the largest gains seen in the consumer goods sector.

Here is the full PMI report. We have also included a graphic showing a breakdown on each.

Source: Markit

5 Best Blue Chip Stocks To Invest In Right Now

 If you are looking for safe, high-yielding stocks, you should turn to small-caps.

 

Most investors never consider small-cap stocks for income... or safety. Most associate this sector with speculation and risk. But I found a list of over 100 elite small-cap dividend-paying stocks that Wall Street has largely ignored.

 

Right now, the Wall Street darlings are big, dividend-paying blue chips. Take Procter & Gamble (NYSE: PG), for example. It's up 32% in nine months. Or Coca-Cola (NYSE: KO). It's up 26% in less than two years. After their big runs higher, they're not as cheap as they once were.

5 Best Blue Chip Stocks To Invest In Right Now: Philip Morris International Inc(PM)

Philip Morris International Inc., through its subsidiaries, engages in the manufacture and sale of cigarettes and other tobacco products in markets outside of the United States. Its international product brand line comprises Marlboro, Merit, Parliament, Virginia Slims, L&M, Chesterfield, Bond Street, Lark, Muratti, Next, Philip Morris, and Red & White. The company also offers its products under the A Mild, Dji Sam Soe, and A Hijau in Indonesia; Diana in Italy; Optima and Apollo-Soyuz in the Russian Federation; Morven Gold in Pakistan; Boston in Colombia; Belmont, Canadian Classics, and Number 7 in Canada; Best and Classic in Serbia; f6 in Germany; Delicados in Mexico; Assos in Greece; and Petra in the Czech Republic and Slovakia. It operates primarily in the European Union, Eastern Europe, the Middle East, Africa, Asia, Canada, and Latin America. The company is based in New York, New York.

Advisors' Opinion:

• [By Jonas Elmerraji]

  As the world's second largest tobacco company, Philip Morris International (PM) is the prototypical sin stock. It boasts recognizable brands, a sticky customer base, and a hefty dividend payout -- and the payout looks due for a dividend hike. As I write, Philip Morris International currently pays out a 85 cents each quarter, adding up to a 4.05% yield.

  Philip Morris owns almost 30% of the world's tobacco market. And much of that success is thanks to a single iconic brand: Marlboro. The firm has owned Marlboro (as well as second-tier names such as L&M and Parliament) internationally ever since Altria (MO) split up its international and domestic operations. Between the two markets, PM owns the more attractive franchise by far. After all, the international market is the only one that's actually growing.

  While the U.S. market for tobacco products is rife with regulation and demographic shifts are turning away from smoking, international tobacco sales are up -- especially in emerging markets. Premium positioning in markets like India, China and Indonesia translates into substantial cash flows for PM investors. And while the strength of the dollar has been a challenge post-2008, the potential for a Fed taper could strengthen this stock's payout in 2013.

• [By Dan Moskowitz]

  There are definitely concerns for Phillip Morris, which include decreased market share in many areas and poor debt management. However, up until this point, Phillip Morris has done a good job rewarding its shareholders. While history usually repeats itself, that�� not necessarily an all-positive in this case. Phillip Morris didn�� hold up well in 2008/early 2009. If a similar environment were to present itself again, then Phillip Morris wouldn�� be a top option ��regardless of the impressive yield. In the meantime, Phillip Morris is an OUTPERFORM.

5 Best Blue Chip Stocks To Invest In Right Now: International Business Machines Corporation(IBM)

International Business Machines Corporation (IBM) provides information technology (IT) products and services worldwide. Its Global Technology Services segment provides IT infrastructure and business process services, including strategic outsourcing, process, integrated technology, and maintenance services, as well as technology-based support services. The company?s Global Business Services segment offers consulting and systems integration, and application management services. Its Software segment offers middleware and operating systems software, such as WebSphere software to integrate and manage business processes; information management software for database and enterprise content management, information integration, data warehousing, business analytics and intelligence, performance management, and predictive analytics; Tivoli software for identity management, data security, storage management, and datacenter automation; Lotus software for collaboration, messaging, and so cial networking; rational software to support software development for IT and embedded systems; business intelligence software, which provides querying and forecasting tools; SPSS predictive analytics software to predict outcomes and act on that insight; and operating systems software. Its Systems and Technology segment provides computing and storage solutions, including servers, disk and tape storage systems and software, point-of-sale retail systems, and microelectronics. The company?s Global Financing segment provides lease and loan financing to end users and internal clients; commercial financing to dealers and remarketers of IT products; and remanufacturing and remarketing services. It serves financial services, public, industrial, distribution, communications, and general business sectors. The company was formerly known as Computing-Tabulating-Recording Co. and changed its name to International Business Machines Corporation in 1924. IBM was founded in 1910 and is based in Armonk, New York.

Advisors' Opinion:

• [By Victor Mora]

  IBM provides essential information technology products and services to growing companies and consumers around the world. The stock has been on a strong bull run in recent years but is now consolidating slightly below all-time high prices. Earnings have been steadily increasing while revenue figures have decreased over the last four quarters, which has confused investors a bit. Relative to its strong peers and sector, IBM has trailed in year-to-date performance. WAIT AND SEE what IBM does this coming quarter.

• [By Paul]

  IBM. Emerging markets are a big growth driver for this computer systems and software provider. Not only that, Resendes says, IBM has "a bullet-proof balance sheet that will allow it to weather the current storm and position it for superior growth and profitability in the long term." He thinks the stock, which recently traded at $93, is worth $120 a share: ''There are some obvious companies that offer much bigger discounts, but you have to incorporate the safety factor. You're getting a premium company here that's a good spot to be in within the tech space."

10 Best Bank Stocks To Watch For 2014: Chevron Corporation(CVX)

Chevron Corporation, through its subsidiaries, engages in petroleum, chemicals, mining, power generation, and energy operations worldwide. It operates in two segments, Upstream and Downstream. The Upstream segment involves in the exploration, development, and production of crude oil and natural gas; processing, liquefaction, transportation, and regasification associated with liquefied natural gas; transportation of crude oil through pipelines; and transportation, storage, and marketing of natural gas, as well as holds interest in a gas-to-liquids project. The Downstream segment engages in the refining of crude oil into petroleum products; marketing of crude oil and refined products primarily under the Chevron, Texaco, and Caltex brand names; transportation of crude oil and refined products by pipeline, marine vessel, motor equipment, and rail car; and manufacture and marketing of commodity petrochemicals, plastics for industrial uses, and fuel and lubricant additives. It a lso produces and markets coal and molybdenum; and holds interests in 13 power assets with a total operating capacity of approximately 3,100 megawatts, as well as involves in cash management and debt financing activities, insurance operations, real estate activities, energy services, and alternative fuels and technology business. Chevron Corporation has a joint venture agreement with China National Petroleum Corporation. The company was formerly known as ChevronTexaco Corp. and changed its name to Chevron Corporation in May 2005. Chevron Corporation was founded in 1879 and is based in San Ramon, California.

Advisors' Opinion:

• [By GuruFocus] Tom Gayner initiated holdings in Chevron Corp. His purchase prices were between $114.81 and $126.43, with an estimated average price of $120.86. The impact to his portfolio due to this purchase was 0.18%. His holdings were 43,000 shares as of 06/30/2013.
  
  New Purchase: Brookfield Property Partners LP (BPY)
  
  Tom Gayner initiated holdings in Brookfield Property Partners LP. His purchase prices were between $19.57 and $23.64, with an estimated average price of $21.67. The impact to his portfolio due to this purchase was 0.13%. His holdings were 175,122 shares as of 06/30/2013.
  
  New Purchase: ONEOK, Inc. (OKE)
  
  Tom Gayner initiated holdings in ONEOK, Inc.. His purchase prices were between $41.16 and $52.13, with an estimated average price of $46.98. The impact to his portfolio due to this purchase was 0.1%. His holdings were 70,000 shares as of 06/30/2013.
  
  New Purchase: Blackstone Group LP (BX)
  
  Tom Gayner initiated holdings in Blackstone Group LP. His purchase prices were between $19.1 and $23.45, with an estimated average price of $21.2. The impact to his portfolio due to this purchase was 0.09%. His holdings were 116,900 shares as of 06/30/2013.
  
  New Purchase: BlackRock Inc (BLK)
  
  Tom Gayner initiated holdings in BlackRock Inc. His purchase prices were between $245.3 and $291.69, with an estimated average price of $267.9. The impact to his portfolio due to this purchase was 0.08%. His holdings were 9,100 shares as of 06/30/2013.
  
  New Purchase: KKR & Co LP (KKR)
  
  Tom Gayner initiated holdings in KKR & Co LP. His purchase prices were between $17.8 and $21.15, with an estimated average price of $19.85. The impact to his portfolio due to this purchase was 0.08%. His holdings were 115,000 shares as of 06/30/2013.
  
  New Purchase: Eni SpA (E)
  
  Tom Gayner initiated holdings in Eni SpA. His purchase prices were between $40.39 and $48.96, with an estimated average price of $45.85. The impact to his portfolio due to this purchase was 0.04%. His ! holdings were 30,000 shares as of 06/30/2013.
  
  New Purchase: Ross Stores, Inc. (ROST)
  
  Tom Gayner initiated holdings in Ross Stores, Inc.. His purchase prices were between $59.26 and $66.5, with an estimated average price of $64.05. The impact to his portfolio due to this purchase was 0.04%. His holdings were 18,000 shares as of 06/30/2013.
  
  New Purchase: Carlyle Group LP (CG)
  
  Tom Gayner initiated holdings in Carlyle Group LP. His purchase prices were between $24.19 and $32.87, with an estimated average price of $29.56. The impact to his portfolio due to this purchase was 0.02%. His holdings were 20,000 shares as of 06/30/2013.
  
  Sold Out: EOG Resources (EOG)
  
  Tom Gayner sold out his holdings in EOG Resources. His sale prices were between $113.44 and $137.9, with an estimated average price of $128.22.
  
  Sold Out: State Street Corp (STT)
  
  Tom Gayner sold out his holdings in State Street Corp. His sale prices were between $56.51 and $67.44, with an estimated average price of $62.2.
  
  Sold Out: Bunge Ltd (BG)
  
  Tom Gayner sold out his holdings in Bunge Ltd. His sale prices were between $66.4 and $73.51, with an estimated average price of $70.39.
  
  Added: UnitedHealth Group Inc (UNH)
  
  Tom Gayner added to his holdings in UnitedHealth Group Inc by 45.25%. His purchase prices were between $58.54 and $66.09, with an estimated average price of $62.22. The impact to his portfolio due to this purchase was 0.4%. His holdings were 569,800 shares as of 06/30/2013.
  
  Added: Liberty Media Corporation (LMCA)
  
  Tom Gayner added to his holdings in Liberty Media Corporation by 102.38%. His purchase prices were between $108.75 and $130.01, with an estimated average price of $119.32. The impact to his portfolio due to this purchase was 0.2%. His holdings were 85,000 shares as of 06/30/2013.
  
  Added: National Oilwell Varco, Inc. (NOV)
  
  Tom Gayner added to his holdings in National Oilwell Varco, Inc. by 40.44%. His purchase prices were bet! ween $64.! 14 and $71.57, with an estimated average price of $68.35. The impact to his portfolio due to this purchase was 0.14%. His holdings were 191,000 shares as of 06/30/2013.
  
  Added: Google, Inc. (GOOG)
  
  Tom Gayner added to his holdings in Google, Inc. by 86%. His purchase prices were between $765.914 and $915.89, with an estimated average price of $849.25. The impact to his portfolio due to this purchase was 0.13%. His ho
• [By Victor Mora]

  Chevron is an oil and gas bellwether that provides essential energy products and services to consumers and companies worldwide. The company recently won a bid to explore�for shale gas in western Lithuania. The stock is currently bouncing off an upward sloping trendline and may continue to do so. Over the last four quarters, earnings and revenues have been mixed, which has produced mixed feelings among investors in the company. Relative to its peers and sector, Chevron has been a year-to-date performance leader. Look for Chevron to OUTPERFORM.

• [By Jonas Elmerraji]

  Oil and gas supermajor Chevron (CVX) is another name that's showing investors a bullish technical setup right now. Chevron is forming a textbook ascending triangle pattern, a price setup that we've seen a lot of on the way up in 2013. Here's how to trade it.

  Chevron's ascending triangle is formed by horizontal resistance above shares at $127.50 and uptrending support below shares. Basically, as CVX bounces in between those two technical price levels, it's getting squeezed closer and closer to a breakout above $127.50. When that breakout happens, we've got our buy signal.

  The energy sector spent the last quarter as a bit of a laggard, but it's been heating back up in the last month and change. With a breakout trade getting close to triggering here, Chevron offers one of the best-in-breed ways to play the trend this summer.

5 Best Blue Chip Stocks To Invest In Right Now: Visa Inc.(V)

Visa Inc., a payments technology company, engages in the operation of retail electronic payments network worldwide. It facilitates commerce through the transfer of value and information among financial institutions, merchants, consumers, businesses, and government entities. The company owns and operates VisaNet, a global processing platform that provides transaction processing services. It also offers a range of payments platforms, which enable credit, charge, deferred debit, debit, and prepaid payments, as well as cash access for consumers, businesses, and government entities. The company provides its payment platforms under the Visa, Visa Electron, PLUS, and Interlink brand names. In addition, it offers value-added services, including risk management, issuer processing, loyalty, dispute management, value-added information, and CyberSource-branded services. The company is headquartered in San Francisco, California.

Advisors' Opinion:

• [By Charles Sizemore]

  One of the “big picture” economic themes that I expect to play out over 2011 and beyond is the secular shift to a global cashless society.?Though the process is well on its way in the U.S. and Europe, roughly 40% of all transactions are still made with cash and paper checks according to Barron’s.

  This means that even in “boring” developed markets, there is ample room for growth in electronic payments. And there is no better company to benefit from this trend than credit card giant Visa (NYSE: V).

• [By Victor Mora]

  Visa strives to help consumers, companies, governments, and other entities by providing methods of easy transaction worldwide. The company recently reported earnings that made investors happy, and the stock is now trading near all-time high prices, with still more room to rise. Over the last four quarters, earnings and revenue figures have been increasing, which has pleased investors in the company. Relative to its strong peers and sector, Visa has been an average year-to-date performer. Look for Visa to continue to OUTPERFORM.

• [By Rebecca Lipman]

   Operates retail electronic payments network worldwide. Market cap of $82.48B. EPS growth (5-year CAGR) at 15%. According to Morgan Stanley: "Global penetration of electronic payments remains low with 85% of the world's transactions still cash-based, leaving ample runway to support healthy growth prospects through (at least) 2015."

• [By Ed Carson]

  The holiday season was hit or miss for many retailers, but indicators are that consumers were using plastic. Visa shares have risen steadily for the past seven months, with a strong 6% gain so far in 2013. Even in America, consumers continue to shift more from cash and checks to credit and debit cards. Overseas, consumers are adopting plastic, while some are bypassing cards and going straight to mobile payments. Visa wants to make sure it's part of that mobile solution.

  Visa earnings growth has decelerated for the past two quarters from 30% to 24% to 21%. Revenue growth in the latest quarter picked up to 15%, matching the best gains of the past two years.

5 Best Blue Chip Stocks To Invest In Right Now: McDonald's Corporation(MCD)

McDonald?s Corporation, together with its subsidiaries, operates as a worldwide foodservice retailer. It franchises and operates McDonald?s restaurants that offer various food items, soft drinks, coffee, and other beverages. As of December 31, 2009, the company operated 32,478 restaurants in 117 countries, of which 26,216 were operated by franchisees; and 6,262 were operated by the company. McDonald?s Corporation was founded in 1948 and is based in Oak Brook, Illinois.

Advisors' Opinion:

• [By JON C. OGG]

  McDonald’s Corporation (NYSE: MCD) is at $85.08 and analysts have a consensus price target objective of $97.68.  It carries a 2.9% dividend yield and the stock is down 5% from its 52-week high.  McDonald’s trades at close to 6-times book value, but its return on equity is 37%.  S&P carries an “A” local long-term rating on the Golden Arches.  In the “you gotta eat somewhere” theory, McDonald’s seems to keep winning over and over and its shares and same-store sales keep rising handily.

• [By Brian Gorban]

   Fast food giant and world-renowned company McDonald’s (NYSE: MCD) is undoubtedly a name you’ve heard of, as “the golden arches” are ubiquitous--and with good reason: The company operates over 33,000 restaurants in 119 countries. With over $27 billion in revenue and a market capitalization near $90 billion, McDonald’s is simply a juggernaut and should continue to be a beneficiary of the global growth story happening predominately in the “BRIC” (Brazil, Russia, India, and China) countries in the years and decades to come.

  Of course, those countries have not been spared the current economic carnage and that has caused the company to miss the past two quarters’ consensus estimates, but that has created a buying opportunity. With the stock trading not far above its $83.31 52-week low, McDonald’s is now yielding an attractive 3.5% dividend yield, and with a low 54% payout ratio, look for the dividend to not only be safe but be raised in the near future. Add in the fact that the company has a comparatively and historically low 16x forward and trailing P/E, and I think MCD should serve investors well for the long-term while one can wait and happily collect the nice 3.5% dividend.

• [By Victor Mora]

  McDonald�� provides highly demanded food items to significant amounts of consumers who enjoy their items around the world. The stock has done very well for investors of the last several years and is now trading at all-time high prices. Earnings and revenue figures have done reasonably well, however, investors have expected a little more from the company. Relative to its strong peers and sector, McDonald’s has been a performance leader, year-to-date. Look for McDonald’s to continue to OUTPERFORM.

Why Does College Cost So Much ... and What Can You Do About It?

Getty Images For anybody who has paid even the slightest amount of attention to higher education over the past few years, it should come as absolutely no surprise that college costs a lot of money. Countless writers and analysts -- including me -- have noted that higher ed costs more than it ever has before, and that more and more people are going insanely deep into debt to pay for it. But even amid the of the higher ed debate, the issue of how it impacts you -- and how you can maximize the value of your college dollar -- has sometimes gotten short shrift. On The Washington Post's Wonkblog, Dylan Matthews' series "The Tuition Is Too Damn High" has unpacked several of the details of the tuition battle, looking at both why college is so expensive and why it is still the best investment you can make. The series is required reading for anyone interested in the college funding debate.

Hot Companies To Invest In Right Now

Netflix (NASDAQ: NFLX  ) has been a poster boy for market success in 2013. The stock has gained 134% in value during the first six months of the year and is one of the strongest performers outside of ultra-risky penny stocks. The digital video maven earned it by collecting more than 30 million domestic customers and more than 7 million viewers abroad, while also producing high-quality original shows and locking up even more third-party content deals.

As successful as Netflix stock has been this year, it's not the biggest winner of all. In fact, it's just the 15th strongest performer among reasonably sized Russell 3000 members. Let's take a closer look at four of the stocks that managed to outperform Netflix so far, using the video veteran as the benchmark to beat.

Hot Companies To Invest In Right Now: Wright Medical Group Inc.(WMGI)

Wright Medical Group, Inc., an orthopedic medical device company, engages in the design, manufacture, and marketing of devices and biologic products for the extremity, hip, and knee repair and reconstruction. The company also provides surgical solutions for the foot and ankle market. The reconstructive devices are used to replace knee, hip, and other joints and bones that are deteriorated or damaged through disease or injury; and biologics are used to replace damaged or diseased bone to stimulate bone growth and to provide other biological solutions for surgeons and their patients. Wright Medical Group, Inc. offers products in the extremity reconstruction, biologics, knee reconstruction, and hip reconstruction market sectors. It sells its products primarily through a network of employee sales representatives and independent sales representatives in the United States, as well as through a combination of employee sales representatives, independent sales representatives, and stocking distributors in Europe, the Middle East, Africa, Latin America, Asia, Australia, and Canada. The company was founded in 1950 and is headquartered in Arlington, Tennessee.

Advisors' Opinion:

• [By CRWE]

  Wright Medical Group, Inc. (NASDAQ:WMGI), a global orthopaedic medical device company, will be participating in the Morgan Stanley Global Healthcare Conference on Tuesday, September 11, 2012 at the Grand Hyatt Hotel in New York, NY.

Hot Companies To Invest In Right Now: Alliance Bancorp Inc. of Pennsylvania(ALLB)

Alliance Bancorp, Inc. of Pennsylvania operates as the bank holding company for Alliance Bank that provides various savings bank services in Pennsylvania. It offers various deposit instruments, including NOW, money market, regular savings, term certificate, passbook and statement savings, and non-interest bearing accounts, as well as certificates of deposit. The company also provides single-family residential real estate loans; multi-family residential and commercial real estate loans; residential and commercial construction loans, and land acquisition and development loans; consumer loans, including student loans, deposit account secured loans, and lines of credit; and commercial business loans. As of December 31, 2010, it operated nine branch offices located in Delaware and Chester Counties, Pennsylvania. The company was founded in 1938 and is headquartered in Broomall, Pennsylvania.

Best Stocks To Own For 2014: PC-Tel Inc.(PCTI)

PCTEL, Inc. provides propagation and optimization solutions for the wireless industry. It designs and develops software-based radios (scanning receivers) for wireless network optimization; and develops and distributes antenna solutions. The company?s scanning receivers, receiver-based products, and interference management solutions are used to measure, monitor, and optimize cellular networks. It offers various antenna products for worldwide interoperability for microwave access antennas, land mobile radio antennas, and precision global positioning systems antennas that serve applications in telemetry, radio frequency identification, WiFi, fleet management, and mesh networks. The company?s antenna solutions address public safety, military, and government applications; supervisory control and data acquisition, health care, energy, smart grid, and agricultural applications; and indoor wireless, wireless backhaul, and cellular applications. PCTEL, Inc. supplies its products to public and private carriers, wireless infrastructure providers, wireless equipment distributors, value added resellers, and original equipment manufacturers through distributors and direct sales force. The company was founded in 1994 and is headquartered in Bloomingdale, Illinois.

Advisors' Opinion:

• [By Roberto Pedone]

  PCTEL (PCTI) designs and develops software-based radios for wireless network optimization and develops and distributes innovative antenna solutions. This stock closed up 1.1% to $9.83 in Tuesday's trading session.

  Tuesday's Range: $9.70-$9.85
  
  52-Week Range: $5.65-$10.00
  
  Thursday's Volume: 77,000
  
  Three-Month Average Volume: 80,200

  From a technical perspective, PCTI bounced modestly higher here right above some near-term support at $9.50 with decent upside volume. This stock has been trending sideways in a consolidation pattern for the last month, with shares moving between $9.08 on the downside and $10 on the upside. Shares of PCTI are now quickly moving within range of triggering a major breakout trade. That trade will hit if PCTI manages to take out its 52-week high at $10 with high volume.

  Traders should now look for long-biased trades in PCTI as long as it's trending above near-term support at $9.50 or above $9.08 and then once it sustains a move or close above $10 with volume that hits near or above 80,200 shares. If that breakout triggers soon, then PCTI will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $12 to $13.

Hot Companies To Invest In Right Now: Covanta Holding Corp (CVA)

Covanta Holding Corporation (Covanta), incorporated in April 16, 1992, is a holding company. The Company is a owner and operator of infrastructure for the conversion of waste to energy ( energy-from-waste or EfW), as well as other waste disposal and renewable energy production businesses. Covanta conduct all of its operations through subsidiaries which are engaged predominantly in the businesses of waste and energy services. The Company has one segment which is Americas and consists of waste and energy services operations primarily in the United States and Canada. The Company owns and holds interests in energy-from-waste facilities in China and Italy. The Company also has investments in subsidiaries engaged in insurance operations in California, primarily in property and casualty insurance. In 2011, it sold two landfill gas projects located in California. In May 2011, it acquired a metals processing facility located on its Dade energy-from-waste facility site.

As of December 31, 2011, it owned 85% interest of Taixing Covanta Yanjiang Cogeneration Co., Ltd. It operates and maintains the energy-from-waste facility located in and owned by the City and County of Honolulu, Hawaii. In December 2011, the Company amended the waste disposal agreement with the Union County Utilities Authority to extend their terms from 2023 to 2031 and to increase the Union County Utilities Authority�� waste disposal commitment. The Company�� EfW facilities earn revenue from both the disposal of waste and the generation of electricity, generally under long-term contracts, as well as from the sale of metal recovered during the energy-from-waste process. In the Americas, it processes approximately 19 million tons of solid waste annually. In total, these assets produce over 10 million megawatt hours of baseload electricity annually. The Company operates and/or has ownership positions in 46 energy-from-waste facilities, which are primarily located in North America, and 15 additional energy generation facilities, i! ncluding other renewable energy production facilities in North America (wood biomass and hydroelectric). The Company also operates a waste management infrastructure that is complementary to its core EfW business.

Energy-From-Waste Projects

Energy-from-waste projects have two purposes: to provide waste disposal services, typically to municipal clients who sponsor the projects, and to use that waste as a fuel source to generate renewable energy. The electricity or steam generated by the projects is generally sold to local utilities or industrial customers. The projects are capable of providing waste disposal services and generating electricity or steam. The Company provides these waste disposal services and sell the electricity and steam generated under contracts, which expire on various dates between 2012 and 2034. Many of its service contracts may be renewed for varying periods of time, at the option of the municipal client.

Tehe Company�� energy-from-waste projects generate revenue from three main sources: fees charged for operating projects or processing waste received; the sale of electricity and/or steam, and the sale of ferrous and non-ferrous metals that are recycled as part of the energy-from-waste process. Its customers for waste disposal or facility operations are principally municipal entities, though it also markets disposal capacity at certain facilities to commercial and special waste customers. Its facilities sell energy primarily to utilities at contracted rates or, in situations where a contract is not in place, at prevailing market rates in regional markets (primarily PJM, NEPOOL and NYISO in the Northeastern United States).

The Company operates, and in some cases has ownership interests in, transfer stations and landfills, which generate revenue from ash disposal fees or operating fees. In addition, it owns, and in some cases operates, other renewable energy projects in the Americas segment, which generate electricity from wood wast! e (biomas! s) and hydroelectric resources. The electricity from these other renewable energy projects is sold to utilities under contracts or into the regional power pool at short-term rates. For these projects, it receives revenue from sales of energy, capacity and/or cash from equity distributions and additional value from the sale of renewable energy credits.

The Company operates energy-from-waste projects in 16 states and one Canadian province, and are constructing an energy-from-waste project in a second Canadian province. Most of its energy-from-waste projects were developed and structured contractually as part of competitive procurement processes conducted by municipal entities. Its EfW projects can generally be divided into three categories, based on the applicable contract structure at a project: Tip Fee projects, Service Fee projects that the Company owns, and Service Fee projects that it do not own but operate on behalf of a municipal owner. At Tip Fee projects, it receives a per-ton fee for processing waste, and it typically retain all of the revenue generated from energy and recycled metal sales. The Company generally owns or leases the Tip Fee facilities. At Service Fee projects, it typically charge a fixed fee for operating the facility, and the facility capacity is dedicated either primarily or exclusively to the host community client, which also retains the majority of any revenue generated from energy and recycled metal sales. The Company also owns and/or operates 13 transfer stations and four ash landfills in the northeast United States, which it utilizes to supplement and manage more efficiently the fuel and ash disposal requirements at its energy-from-waste operations. The Company provides waste procurement services to its waste disposal and transfer facilities which have available capacity to receive waste.

Biomass Projects

The Company owns and operates seven wood-fired generation facilities and have a 55% interest in a partnership which owns another w! ood-fired! generation facility. The Company�� six facilities are located in California, and two are located in Maine. The combined gross energy output from these facilities is 191 megawatts. The Company generates income from its biomass facilities from sales of electricity, capacity, and where available, additional value from the sale of renewable energy credits. These facilities sell their energy output into local power pools or to local utilities at rates that are either fixed or float with the market.

Hydroelectric

The Company owns a 50% interest in two small run-of-river hydroelectric facilities located in the State of Washington, which sells energy and capacity to Puget Sound Energy under long-term energy contracts. The Company has a nominal investment in two hydroelectric facilities in Costa Rica.

Energy-From-Waste

The Company and Chongqing Iron & Steel Company (Group) Ltd. entered into an agreement to build, own, and operate a 1,800 metric ton per day energy-from-waste facility for Chengdu Municipality in Sichuan Province, People�� Republic of China. The Company also executed a 25 year waste concession agreement for this project. In connection with this project, it acquired a 49% interest in the project company. Construction commenced in 2009 and the facility began processing waste during the year ended December 31, 2011. The electrical output from these projects is sold at governmentally established preferential rates under short-term arrangements with local power bureaus. As of December 31, 2011, the Company owned 85% of Taixing Covanta Yanjiang Cogeneration Co., Ltd. which, in 2009, entered into a 25 year concession agreement and waste supply agreements to build, own and operate a 350 metric tons per day energy-from-waste facility for Taixing Municipality, in Jiangsu Province, People�� Republic of China. The Company will continue to operate its coal-fired facility.

The Company owns a 40% interest in Chongqing Sanfeng Covanta Environ! mental In! dustry Co., Ltd. (Sanfeng), a company located in Chongqing Municipality, People�� Republic of China. Sanfeng is engaged in the business of owning and operating energy-from-waste projects, providing design and engineering, procurement, construction services and equipment sales for energy-from-waste facilities in China. Sanfeng owns minority interests in two 1,200 metric tons per day, 24 megawatts mass-burn energy-from-waste projects (Fuzhou project and Tongqing project), and has a contract to operate the Chengdu project. Chongqing Iron & Steel Group Environmental Investment Co. Ltd., a wholly owned subsidiary of Chongqing Iron & Steel Company (Group) Ltd., holds the remaining 60% interest in Sanfeng. The solid waste supply for the projects comes from municipalities under long-term contracts. The municipalities also have the obligation to coordinate the purchase of power from the facilities as part of the long-term contracts for waste disposal. The electrical output from these projects is sold at governmentally established preferential rates under short-term arrangements with local power bureaus.

The Company owns a 13% interest in a 500 metric tons per day, 18 megawatts mass-burn energy-from-waste project at Trezzo sull��dda in the Lombardy Region of Italy. The project is operated by Ambiente 2000 S.r.l., in which the Company owns 40%. The solid waste supply for the project comes from municipalities and privately-owned waste haulers under long-term contracts. The electrical output from the Trezzo project is sold at governmentally established preferential rates under a long-term purchase contract to Italy�� state-owned electricity grid operator, Gestore della Rete di Trasmissione Nazionale S.p.A.

Independent Power Projects

The Company has a majority interest in a 24 megawatts (gross) coal-fired cogeneration facility in Taixing City, Jiangsu Province, People�� Republic of China. The project entity, in which it holds a majority interest, operates this project. T! he party ! holding a minority position in the project is an affiliate of the local municipal government. While the steam produced at this project is focused to be sold under a long-term contract to its industrial host, in practice, steam has been sold on a short-term basis to either local industries or the industrial host, in each case at varying rates and quantities. The electric power is sold at an average grid rate to a subsidiary of the provincial power bureau.