Wednesday, April 30, 2014

Nabors Industries CEO: $95M in pay, stock gains

It's been a big week for big reveals on the CEO pay front.

The latest: Nabors Industries' Anthony Petrello, who received compensation valued at $68.2 million and gained another $27 million from vested shares, the gas and oil drilling contractor said Wednesday in its annual filing.

Nabors Industries had been under pressure to limit pay and severance packages for executives since 2011, when then-CEO Eugene Isenberg stepped away with a $100 million termination fee, but remained as chairman. Isenberg later waived the payment.

Facing renewed shareholder pressure, Nabors' board of directors terminated a potential $50 million severance payment to Petrello and capped his cash bonus last year. But a new, restructured employment contract provided Petrello a one-time payment worth $45 million, Nabors says.

Petrello, 59, also received a stock award valued at $18.7 million, $1.5 million bonus and $1.7 million in salary. Petrello's 2012 compensation was valued at $19.7 million.

News of Petrello's compensation comes on the heels of several mega-paydays disclosed in proxy filings over the past week. Among them:

Cheniere Energy reported that CEO Charif Souki received compensation valued at $142 million and gained another $130 million from vested shares.

LinkedIn said CEO Jeffrey Weiner received compensation valued at about $49 million and gained nearly $180 million from stock options and vested shares.

Time Warner Cable said CEO Glenn Britt received compensation valued at nearly $118 million, including $62 million in stock and options that vested when he retired Dec. 31.

Wal-Mart reported CEO Mike Duke, who retired Jan. 31, received deferred comp valued at $140 million.

Follow Strauss on Twitter @gbstrauss.

Twitter shares plunge on disappointing growth

Wall Street has sent a direct message to Twitter: Get more followers.

The social-network giant beat financial estimates for its first-quarter earnings, but fell short of expected growth in number of people using the popular social-media platform.

As a result, shares of Twitter dropped about 10% in after-hours trading to $38.09, following Twitter's earnings release after the market close. The San Francisco-based company reported that monthly active users came in at 255 million, a 25% year-over-year increase but below expectations.

FIRST TAKE: Twitter's user growth is flattening

Mobile users continued to grow, improving to 198 million in the quarter, up 31% over last year, accounting for 78% of total users. Timeline views, the number of times Twitter users looked at their message stream, hit 157 billion, an increase of 15%.

Analysts had hoped for users to top 262 million and Timeline views of more than 162 billion. Twitter showed "good monetization, but the key metrics were below expectations driven by weakness internationally," said Wedbush Securities analyst Shyam Patil. "This is likely to weigh on the stock."

Twitter said it broke even for the quarter and had revenue of $250 million, beating expectations of a loss 3 cents per share and revenue of $241.7 million, according to estimates from S&P Capital IQ.

Advertising revenue of $226 million rose 125% over the same period last year. And all-important mobile revenue represented 80% of total ad revenue, an increase over the 75% share from last quarter. "We had a very strong first quarter. Revenue growth accelerated on a year-over-year basis, fueled by increased engagement and user growth," said Twitter CEO Dick Costolo.

This is only Twitter's second earnings report, as the company went public in November 2013. Shares have trading well below its January peak of more than $74. It's still valued at about $24 billion, or about 20 times estimated 2014 sales of $1.2 billion. That's compared with Facebook's ! value of $144 billion about 12 times its sales value.

Wall Street has been looking for Facebook-like growth from Twitter, says RBC Capital Markets analyst Mark Mahaney. "Facebook is well over 1.2 billion or 1.3 billion users, with growth in the mid-teens year-over year. (Twitter) keeps accelerating, and the number of users they have is growing 25%, year over year, which is good growth," he says. "But I think there were people, including within the company, who thought (Twitter) could have half a billion users at some point. It looks like they still have a lot of work to do to really mainstream the service."

Tuesday, April 29, 2014

Moody's Upgraded to Strong Buy - Analyst Blog

On Jul 11, 2013, Zacks Investment Research upgraded Moody's Corp. (MCO) to a Zacks Rank #1 (Strong Buy). With a strong return of 70.4% over the past one year and a positive estimate revision trend, Moody's is an attractive investment opportunity.

Why the Upgrade?

Upbeat first quarter results, strength in new domestic debt issuance and improving clarity over regulatory climate in Europe contributed to the upgrade. Moody's remains a solid franchise in rating debt instruments based on its diversified credit research business model and international growth opportunities.

Moody's reported first quarter earnings of 97 cents per share that were well ahead of the Zacks Consensus Estimate of 87 cents. However, including litigation expenses of 14 cents, earnings were 83 cents per share, up 9.0% from the year-ago quarter.

Revenues surged 13.0% year over year to $731.8 million and exceeded the Zacks Consensus Estimate of $718.0 million. Domestic revenues soared 18.0% year over year to $406.1 million in the reported quarter. International revenues increased 8.0% year over year to $325.7 million in the quarter.

Moody's expects 2013 revenues to grow in the high single-digit percent range. Operating expenses are projected to increase in the mid-single digit percent range. Operating margin is projected to be between 41% and 42%. Earnings for 2013 are expected to be in the range of $3.49 to $3.59 per share.

The Zacks Consensus Estimate for fiscal 2013 increased 2.6% to $3.58 per share as most of the estimates were revised higher over the last 90 days. The current estimate is within the guidance range provided by Moody's. For fiscal 2014, the Zacks Consensus Estimate increased 2.4% to $3.90 per share.

The long-term expected earnings growth rate for Moody's is 13.9%.

Other Stocks to Consider:

Investors can also consider other stocks that are doing well right now. These include Akamai Technologies (AKAM), Energizer Holdings (ENR) and CIT Gro! up (CIT). While Akamai and Energizer carry a Zacks Rank #1 (Strong Buy), CIT carries a Zacks Rank #2 (Buy).

Monday, April 28, 2014

Groundfloor stretches crowd-funding's limits

A renovated historic home near downtown Atlanta hits the market this week, an accomplishment for 39 Georgians who lent $40,000 for the project through Groundfloor, an online crowd-funding platform.

In six months, the home's renovator will pay back those individuals with 8% interest on each loan. The private investors' money funded the project instead of a bank.

While some start-ups await the Securities and Exchange Commission's promised rules for allowing non-accredited investors to participate in crowd-funding, Raleigh, N.C.-based Groundfloor is working within existing state laws to get a head start.

Today, it announces the expansion of its Georgia pilot to Illinois, Pennsylvania, Arizona, Massachusetts and Virginia, where regulators have authorized the company to solicit residents to participate in its deals around the nation. Georgia approved intrastate crowd-funding in 2011.

Founder Brian Dally says his platform will now be available to 47 million Americans. It's the first major milestone in a plan to expand real estate crowd-lending nationally.

Dally believes the timing is perfect. Real estate crowd-funding leader Realty Mogul raised $9 million from investors in March to expand its platform for accredited real estate investing. The Washington, D.C., site Fundrise has successfully crowd-funded commercial real estate in Virginia. At least 20 platforms are operating in the real estate business today.

But Dally says Groundfloor is unusual in that its mission opens real estate investing to the general population. The minimum investment is $100, and the maximum is $2,000. Terms are six months to several years, the investment is secured by the real property, and there's an aggressive pre-screening process for developers. The site targets small residential-development projects.

"We think this is a revolutionary concept for personal finance," Dally says. "This is a steady, tangible way for ordinary people to make good returns on their money, a new class of product th! at didn't exist yesterday."

Developers in Georgia have embraced the opportunity. They see it as a viable way to quickly raise cash for a project — the historic renovation deal closed in five days — and to fund projects that banks either don't fund or review for months before making a loan.

"They're tapping into a submarket I couldn't touch — the people who have $500 to $1,000," says John Mangham, who renovated the home in Atlanta and has 30 years of experience in the industry. "They are multiplying my reach."

And as Kickstarter and Indiegogo do for consumer products, electronics, films and other start-up projects, Groundfloor helps build awareness for the real estate that developers hope to eventually sell, lease or rent to individuals and businesses.

That's a draw for Rick Tuley, another Atlanta developer who made an angel investment when he learned of Groundfloor. He believes he's an early supporter of a $1 billion-a-yearcompany in the making.

"There are literally trillions of dollars in certificates of deposit in a bank, that might be earning 1% for six or 12 months," he says. "It doesn't take a very large percentage of those investors to make this a really attractive company."

Dally expects momentum to grow quickly in coming weeks. Groundfloor will soon list deals in such cities as Pittsburgh, Cincinnati, Raleigh, Fort Myers, Fla., Huntsville, Ala., and Orlando. It will use online marketing strategies to find people in the six approved states to invest in the deals — that's worked in Georgia, so far.

Mangham, meanwhile, just closed his latest Groundfloor deal. He raised $60,000 from 53 investors, who've agreed to a 12% interest rate and a six-month term. Construction is already underway on the renovation project, and he's got his eyes on more.

"I drove by two properties with new signs up," he says. "All my funds are committed right now, but if I thought I could get funding in a week, I could be making offers. I'm excited to be at the early sta! ges of th! is process."

Laura Baverman is a Raleigh, N.C.-based business journalist covering start-ups and entrepreneurship for regional and national publications. Baverman can be reached via e-mail at lbaverman@gmail.comor Twitter @laurabaverman.

Sunday, April 27, 2014

Weekend Edition: Porter Stansberry: Your bank account is in more danger than you thought

 Today, I (Porter) would like to share with you the primary secret of all central bankers... This secret explains why, despite rising wages and nominal economic growth, most people in America continue to get massively poorer.   Though you've probably heard about the concepts I'm going to explain, I'm pretty sure you don't fully understand them. But they're vitally important.   I'm talking about currencies and banking.    The best way to explain this secret is to show you the consequences of these policies. Imagine placing $10,000 in a two-year bank CD. You see this money as your "rainy day" fund to handle emergencies and special purchases.   Two years later, you go to the bank to retrieve your money. When you arrive, the teller explains that instead of having $10,000, you now have just $8,000.   To most people, it's absurd to think that placing money in a "safe" bank account could result in losing 20% of your wealth. After all, every reputable bank has a security department that prevents theft. Plus, you'd probably instantly spot the losses by looking at your monthly statements.    But the truth is, this exact thing happened to millions of Americans from 2006 to 2008. Every $10,000 placed into a conventional, U.S.-dollar bank account in early 2006 was worth 20% less two years later.   Amazingly, not one accountholder in 100 realized it. Not one accountholder in 100 understood the massive, hidden forces that caused this loss of wealth... which "clipped" 20% from every $10,000 in U.S. bank savings.   These hidden forces exist in the currency market. But most people have virtually no understanding of how that market works. We believe it's vitally important that you have a basic understanding of the currency markets and how governments around the world manipulate them... We want you to understand these forces so you can protect yourself... and even profit from the ongoing corruption of paper money.    Most people believe currency fluctuations don't affect them... or that the whole subject is just too boring to pay attention to. After all, how much can the value of your bank account really swing up and down? The answer is a lot.   Below is a 10-year chart of the U.S. dollar index from mid-2003 to mid-2013. This index measures the dollar's value against a basket of foreign currencies, like the euro and the Japanese yen. It's the generally agreed-upon measure of the dollar's global trade value.   One look at this chart, and you'll see that big moves in the value of your bank account happen more often than you think. Double-digit percentage changes in value are taking place in the span of months... not years.   Again, we state: If you think holding U.S. dollars in a bank account is a boring, conservative idea... think again.      Also... keep in mind that if you buy stocks, what you're really doing is simply moving your wealth out of dollars and into stocks. You are betting that stocks will rise in value versus the dollar. You do the same thing when you buy gold or real estate. You hope the asset you buy rises in value relative to the dollar.   Once again... by simply owning a bank account, you are making a currency bet. The same goes for owning stocks, real estate, or gold. There's just no way to escape the currency market.   Whether you like it or not, you're a currency trader.    Although the hidden forces of the currency market dominate our economy, you probably don't even know they exist. You won't learn about them from your parents. You won't learn about them from your friends. Even business classes at top universities are largely useless for learning these forces.   This is an enormous problem... one that could have catastrophic consequences for your well-being. As the U.S. government's reckless monetary policies kick us toward financial ruin, knowing about these hidden forces could mean the difference between bankrupting your family... or safely making a fortune.    One of my partners at Stansberry & Associates, Dr. Steve Sjuggerud, has studied and written about currencies for nearly 20 years. In fact, his PhD dissertation was about how currencies move.   I've asked him to share his immense knowledge and experience of these markets and forces with you. And he's written a new True Wealth currency "seminar."   In his presentation, he details how these forces work and their impact on every American. He also reveals several unique trades that will allow you to safely build a huge amount of wealth in the midst of currency fluctuations... including what he's calling "The Greatest Currency Trade of the Next 10 Years."   While Steve's recommended trades are related to currency movements, none of them involves risky, leveraged currency bets like most people think of when they hear "currency trade." These trades don't involve traditional currency trades at all (and all but one can be easily made in a conventional brokerage account).    Out of fairness to Steve's True Wealth subscribers, we can't say much more about this report here. The most important thing to remember is that big currency moves can cause huge "ripple" effects in your life. There's no escape from currency fluctuations. Even if you own a simple bank account, you are "long dollars." Your wealth is tied to the movements in the U.S. dollar.   Steve understands these forces better than anyone. He knows that stuffing money under your mattress won't save you from these powerful forces. He understands that you must harness the power of currencies if you hope to generate and grow your wealth in the coming years.   We're at a major crossroads in the currency markets. Our government is in a "no way out" situation with its finances. You can't afford to sit on your hands and watch your purchasing power decline.   Fortunately, Steve's new report will provide you with all of the education you need to navigate this market. Reading it will take you less than 30 minutes. At the end, you'll know more than most bankers and MBAs.   We're confident you'll agree the education you get from Steve's research is better than any book or course you can buy. And we believe the recommended trades in Steve's report are absolutely necessary for building wealth in the coming years. We're already receiving tremendous feedback on the report and its educational benefits. Here are just a few things readers are saying:  
•   Never had such a concise explanation about currencies combined with no nonsense usable investment info... thank you.
 
•   Hi Steve, Your article is simply fantastic.
 
•   Hey Steve, great issue, I learned a lot. I really value the educational issues the most. Porter has some great ideas and I love his insights too. I like the idea of having multiple ways to invest in an idea and I feel I understand what I am doing more with the more detailed explanations. I feel this kind of issue has much more value. This one is a keeper to be read again and again. Thanks.
   If you haven't read Steve's report yet, it's easy to get a copy. It's free with a zero-risk, money-back-guaranteed subscription to Steve's True Wealth service. We encourage you to sign up, access the report, and learn how to protect your finances. I'm sure you'll learn a lot from Steve's research. I know it will be worth your time. You can get started immediately right here. (This does not go to a long video.)   Regards,   Porter Stansberry



Saturday, April 26, 2014

Best Dividend Stocks To Watch Right Now

To have public- and private-sector leaders think alike is refreshing. During a recent EIA conference in Washington, D.C., Southern Co.� (NYSE: SO  ) CEO Tom Fanning reiterated points made by both President Obama and Secretary of Energy Ernest Moniz. His three points revolved around improving the capability of the United States to effectively and efficiently produce and distribute necessary electricity power.

Based on his three points, it is clear that we have some work to do, but momentum is being generated in a positive direction. Utilizing the full portfolio of energy options is priority No. 1, and Southern Co. is providing a great blueprint for how this could roll out. The other two points he believes are critical are that we need to make it a national priority and shore up our country's financial situation.

Speaking of a full portfolio, nuclear energy and other renewable sources have been key components of Exelon's business model for quite some time. Exelon has positioned itself with the largest nuclear fleet in North America. This strength, combined with an increased focus on balance sheet health and great generation diversification, places Exelon and its resized dividend on a shortlist of the top utilities. To determine if Exelon is a good long-term fit for your portfolio, you're invited to check out The Motley Fool's premium research report on the company. Simply click here now for instant access.

Best Dividend Stocks To Watch Right Now: FirstEnergy Corporation(FE)

Firstenergy Corp. operates as a diversified energy company. The company, through its subsidiaries and affiliates, involves in the generation, transmission, and distribution of electricity, as well as energy management and other energy-related services. It serves approximately 6 million customers within 67,000 square miles through 10 utility operating companies in Ohio, Pennsylvania, New Jersey, West Virginia and Maryland. The company was founded in 1996 and is headquartered in Akron, Ohio.

Advisors' Opinion:
  • [By David Dittman]

    And nothing illustrates this scenario better than the decision by FirstEnergy Corp (NYSE: FE) to cut its dividend by 34.5 percent from $0.55 per share per quarter, or $2.20 on an annualized basis, to $0.36 per share per quarter, or $1.44 per year.

  • [By Jake L'Ecuyer]

    Leading and Lagging Sectors
    Utilities sector was the only gainer in the US market on Friday. Leading the sector was strength from FirstEnergy (NYSE: FE) and Wisconsin Energy (NYSE: WEC). Technology shares declined around 1.53 percent in Friday's trading.

Best Dividend Stocks To Watch Right Now: ENSCO plc(ESV)

Ensco plc, together with its subsidiaries, provides offshore contract drilling services to the oil and gas industry. The company engages in the drilling of offshore oil and natural gas wells by providing its drilling rigs and crews under contracts with international, government-owned, and independent oil and gas companies. As of February 15, 2010, it owned and operated 42 jackup rigs, 4 ultra-deepwater semisubmersible rigs, and 1 barge rig. The company also has 4 ultra-deepwater semisubmersible rigs under construction. It operates in Asia, the Middle East, Australia, New Zealand, Europe, Africa, and North and South America. The company was formerly known as Ensco International plc and changed its name to Ensco plc in March 2010. Ensco plc was founded in 1975 and is based in London, the United Kingdom.

Advisors' Opinion:
  • [By Ben Levisohn]

    As a result, Gerry cut Atwood Oceanics, Ensco (ESV) and Noble Energy (NE) to Market Perform from Outperform. He raised Rowan (RDC) to Outperform from Market Perform. Rowan was also a favorite of Barclays.

  • [By J. Royden Ward]

    Ensco PLC (ESV) owns and operates shallow water and ultra-deepwater rigs, located in many parts of the world.

    Two new drilling rigs are ready to begin multi-year contracts with major international oil companies. Six more rigs are under construction.

  • [By Marc Bastow]

    Off-shore contact drilling service provider Ensco (ESV) raised its quarterly dividend 50% to 75 cents per share, payable on Dec. 20 to shareholders of record as of Dec. 9.
    ESV Dividend Yield: 4.90%

Best Defense Companies To Watch In Right Now: Public Service Enterprise Group Incorporated(PEG)

Public Service Enterprise Group Incorporated, through its subsidiaries, operates in the energy industry primarily in the northeastern and mid Atlantic United States. The company primarily operates as a wholesale energy supply company that integrates its generating asset operations through its wholesale energy, fuel supply, energy trading, and marketing and risk management activities. It operates nuclear, coal, gas, and oil-fired generation facilities. The company also involves in the transmission of electricity and distribution of electricity and natural gas to residential, commercial, and industrial customers, as well as invests in the development of solar generation projects and energy efficiency programs. In addition, it owns and operates domestic projects engaged in the generation of energy; and offers appliance services and repairs to customers. As of December 31, 2010, it owned approximately 13,538 megawatts of generation capacity. The company also owned and operated approximately 17,608 miles of gas mains, 12 gas distribution headquarters, and 2 subheadquarters, as well as 62 natural gas metering and regulating stations. Public Service Enterprise Group was founded in 1985 and is based in Newark, New Jersey.

Advisors' Opinion:
  • [By John Kell and Lauren Pollock var popups = dojo.query(".socialByline .popC"); ]

    Power company Public Service Enterprise Group(PEG) unveiled a $12 billion five-year capital spending plan Friday, an effort to boost earnings growth at its utility segment.

  • [By Jake L'Ecuyer]

    Leading and Lagging Sectors
    In trading on Wednesday, utilities shares were relative leaders, up on the day by about 0.61 percent. Top gainers in the sector included PPL (NYSE: PPL), Empresa Distribuidora y Comercializadora Norte SA (NYSE: EDN), and Public Service Enterprise Group (NYSE: PEG). Telecommunications services sector was the top decliner in the US market on Wednesday.

  • [By Mark Skousen]

    And the builder's valuation is still relatively cheap, selling for only 12 times earnings. Toll Brothers has a price/earnings to growth (PEG) ratio of 0.76 (anything less than 1 is considered excellent).

  • [By Stephen Quickel]

    The stock trades at forward P/E of 22.8 times the consensus 2014 earnings estimate. Factoring in its 23.2% a year expected bottom line growth, the stock's P/E to Growth (PEG) ratio of 0.98—right at the 1.00 level—is considered ideal by PEG ratio advocates.

Best Dividend Stocks To Watch Right Now: CPFL Energia S.A.(CPL)

CPFL Energia S.A., through its subsidiaries, engages in the generation, distribution, and sale of electricity in Brazil. It generates electricity through hydroelectric, thermal, biomass, and wind power plants. The company also involves in the provision of energy commercialization, consultancy, and advisory services to agents in the energy sector; manufacture, commercialization, rental, and maintenance of electromechanical equipment; and provision of administrative services, as well as telephone answering services. It has an installed generating capacity of 2,309 MW. The company was founded in 1998 and is headquartered in Sao Paulo, Brazil.

Advisors' Opinion:
  • [By Jake L'Ecuyer]

    Leading and Lagging Sectors
    Utilities sector surged 0.26%, saw CPFL Energia SA (NYSE: CPL) as the top gainer. Among leading sector stocks, gains came from Consolidated Water Co (NASDAQ: CWCO), Companhia Paranaense de Energia (NYSE: ELP) and Public Service Enterprise Group (NYSE: PEG).

  • [By Jake L'Ecuyer]

    Leading and Lagging Sectors
    Utilities sector gained 1.12 percent, with Companhia Paranaense de Energia (NYSE: ELP) moving up 4.3 percent to gain the top spot. Among leading sector stocks, gains came from Companhia de Saneamento Basico do Estado de Sao Paulo (NYSE: SBS), CPFL Energia SA (NYSE: CPL) and Companhia Energ茅tica de Minas Gerais SA (NYSE: CIG).

  • [By Selena Maranjian]

    Brazilian electricity giant CPFL Energia S.A. (NYSE: CPL  ) sank 20%, and recently yielded 5.9%. Its long-term debt has been rising, largely due to acquisitions, and its free cash flow has been shrinking (and even turning negative�recently). But it has been investing heavily in alternative energies, and it serves a massive and growing market in Brazil. The country's growth has been slower than many would like, but that won't last forever.

Best Dividend Stocks To Watch Right Now: Integrys Energy Group(TEG)

Integrys Energy Group, Inc., through its subsidiaries, operates as a regulated electric and natural gas utility company in the United States and Canada. It provides natural gas utility services in Chicago, Wisconsin, Michigan, and Minnesota. As of December 31, 2009, the company served approximately 1,669,000 residential, commercial and industrial, transportation, and other customers. It had approximately 22,000 miles of natural gas distribution mains; and approximately 1,010 miles of natural gas transmission mains. The company also generates and distributes electric energy form coal, natural gas, fuel oil, hydroelectric, and wind resources in Wisconsin and Michigan. It served approximately 489,000 residential, commercial and industrial, wholesale, and other customers. In addition, Integrys Energy offers nonregulated energy supply and services; and electric transmission services. The company was formerly known as WPS Resources Corporation and changed its name to Integrys En ergy Group, Inc. in February 2007. Integrys Energy Group, Inc. was founded in 1883 and is based in Chicago, Illinois.

Advisors' Opinion:
  • [By Daniel Ferry]

    Another important development last week was the announcement that Trillium CNG, a division of Integrys Energy Group (NYSE: TEG  ) , would build 101 new compressed natural gas (CNG) refueling stations across the country by 2016. This would expand the existing infrastructure of publicly available CNG refueling stations by nearly 20%. This is good news for Westport because many of Westport's products run on CNG, including its bi-fuel WiNG system for light-duty Ford pickup trucks, as well as the medium-duty ISL G and heavy-duty ISX12 G engines it produces through Cummins Westport Incorporated, its manufacturing joint-venture with independent engine maker Cummins (NYSE: CMI  ) . Users of the ISL G and ISX12 G engines include long-haul truck manufacturers like PACCAR (NASDAQ: PCAR  ) , Volvo, and Daimler. Freight trucking is a critical growth industry for natural gas engines, because the long miles and heavy loads that freight trucks endure relative to passenger vehicles make them especially sensitive to fuel costs.

  • [By Justin Loiseau]

    In the same week that TECO is applying for its foray into New Mexico natural gas, Illinois is solidifying its own reliance on the fuel source. Integrys (NYSE: TEG  ) released a statement this week commending Illinois politicians for their "swift signing" of the Natural Gas Consumer, Safety, & Reliability Act.

  • [By Justin Loiseau]

    Integrys Energy (NYSE: TEG  ) has officially received regulatory approval for a $220 million modernization project for its Wisconsin Public Service subsidiary. After completing a pilot project in 2012, the utility developed plans for a five-year large scale project to start in 2014.

Best Dividend Stocks To Watch Right Now: Kimberly-Clark Corporation(KMB)

Kimberly-Clark Corporation, together with its subsidiaries, engages in the manufacture and marketing of various health care products worldwide. The company operates in four segments: Personal Care, Consumer Tissue, K-C Professional & Other, and Health Care. The Personal Care segment provides disposable diapers, training and youth pants, and swimpants; baby wipes; and feminine and incontinence care products, and related products. It offers its products primarily for household use under various brand names, including Huggies, Pull-Ups, Little Swimmers, GoodNites, Kotex, Lightdays, Depend, and Poise. The Consumer Tissue segment offers facial and bathroom tissue, paper towels, napkins, and related products for household use under the Kleenex, Scott, Cottonelle, Viva, Andrex, Scottex, Hakle, and Page brands. The K-C Professional & Other segment offers facial and bathroom tissue, paper towels, napkins, wipers, and a range of safety products for the away-from-home marketplace und er Kimberly-Clark, Kleenex, Scott, WypAll, Kimtech, KleenGuard, Kimcare, and Jackson brand names. The Health Care segment offers disposable health care products, such as surgical drapes and gowns, infection control products, face masks, exam gloves, respiratory products, pain management products, and other disposable medical products under the Kimberly-Clark, Ballard, and ON-Q brand names. The company sells its products to supermarkets; mass merchandisers; drugstores; warehouse clubs; variety and department stores; retail outlets; manufacturing, lodging, office building, food service, and health care establishments; and high volume public facilities. It markets its products through wholesalers, distributors, and direct sales. The company was founded in 1872 and is based in Dallas, Texas.

Advisors' Opinion:
  • [By Markus Aarnio]

    Procter & Gamble's competitors include Johnson & Johnson (JNJ) and Kimberly-Clark Corporation (KMB). Here is a table comparing these companies.

  • [By Sean Williams]

    Being a global company means having exposure to foreign currencies. Although most investors will look past minor fluctuations in underlying currencies, big changes in overseas currency can have a whopping positive or negative effect on profits. For Kimberly-Clark (NYSE: KMB  ) , the company behind Kleenex tissues and Huggies diapers, it was forced to take a $36 million charge related solely to rapid devaluation of the Venezuelan bolivar in February when it reported its first-quarter results. Many global consumer-goods companies are facing similar currency translation pressures.

Best Dividend Stocks To Watch Right Now: P.T. Telekomunikasi Indonesia Tbk.(TLK)

Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk provides telecommunication and network services worldwide. The company?s Fixed Wireline segment offers local, domestic long-distance, international telephone services, and other telecommunications services, including leased lines, telex, transponder, satellite, and very small aperture terminal (VSAT), as well as ancillary services. Its Fixed Wireless segment provides local and domestic long-distance code division multiple access-based telephone services, as well as other telecommunication services within a local area code. Perusahaan Perseroan?s Cellular segment offers mobile cellular telecommunication services. Its network services comprise satellite transponder leasing, satellite broadcasting, VSAT, audio distribution, and terrestrial and satellite-based leased lines. The company?s data and Internet services include short messaging service for fixed wire line, fixed wireless, and cellular phones, dial-up and broadband Internet access, virtual private network (VPN) frame relay, Internet protocol (IP) VPN, voice over IP for international calls, integrated services digital network connections, and other multimedia services. The company also provides information services, such as billing, directory assistance, and content services; and wireless application protocol, Web portal, ring back tones, voicemail, and building management services. In addition, it offers consultancy services, as well as constructs and maintains telecommunications facilities; interconnection services; telephone directory production services; and cable and pay television services. As of December 31, 2010, the company served 120.5 million customers, including 8.3 million fixed wireline telephone subscribers, 18.2 million fixed wireless telephone subscribers, and 94.0 million cellular telephone subscribers. Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk was founded in 1884 and is headquartered in Bandung, Indonesia.

Advisors' Opinion:
  • [By GuruFocus]

    Telekomunikasi Indonesia (TLK) Reached the 52-Week Low of $34.35

    The prices of Telekomunikasi Indonesia (TLK) shares have declined to close to the 52-week low of $34.35, which is 33.3% off the 52-week high of $50.61. Telekomunikasi Indonesia is owned by five Gurus we are tracking. Among them, two have added to their positions during the past quarter. Two reduced their positions.

  • [By GuruFocus]

    Telekomunikasi Indonesia (Persero) Tbk (TLK) Reached the 52-Week Low of $34.63

    The prices of Telekomunikasi Indonesia (Persero) Tbk (TLK) shares have declined to close to the 52-week low of $34.63, which is 33.3% off the 52-week high of $50.61. Telekomunikasi Indonesia (Persero) Tbk is owned by five Gurus we are tracking. Among them, two have added to their positions during the past quarter. Two reduced their positions.

Best Dividend Stocks To Watch Right Now: Lexington Realty Trust (LXP)

Lexington Corporate Properties Trust operates as a self-managed and self-administered real estate investment trust (REIT). The company acquires, owns, and manages a portfolio of office, industrial, and retail properties net-leased to corporate tenants in the United States. It also provides investment advisory and asset management services to institutional investors in the net lease area. As of June 30, 2005, the company operated 185 properties and managed 2 properties. Lexington Corporate Properties Trust has elected to qualify as a REIT for federal income tax purposes. As a REIT, it would not be taxed on the portion of its income, which is distributed to shareholders, provided it distributes at least 90% of its taxable income. The company was founded in 1991 and is based in New York City.

Advisors' Opinion:
  • [By Brad Thomas]

    Compared with the public REIT peers, I believe that Chambers Street will compare favorably to W.P. Carey (WPC) and Lexington Realty Trust (LXP). Both of these REITs own larger box assets and they both have conservative and well-positioned balance sheets. Here is a snapshot of Chambers Street's capitalization:

  • [By CRWE]

    Lexington Realty Trust (NYSE:LXP), a real estate investment trust (REIT) focused on single-tenant real estate investments, reported that it would release its third quarter 2012 results the morning of Tuesday, November 6, 2012. Lexington will conduct a teleconference that same day at 11:00 a.m., Eastern Time.

Best Dividend Stocks To Watch Right Now: S&P GSCI(GD)

General Dynamics Corporation, an aerospace and defense company, provides business aviation; combat vehicles, weapons systems, and munitions; military and commercial shipbuilding; and communications and information technology products and services worldwide. Its Aerospace group designs, manufactures, and outfits various large and mid-cabin business-jet aircraft; provides maintenance, repair work, fixed-based operations, and aircraft management services; and performs aircraft completions for aircraft. The company?s Combat Systems group offers tracked and wheeled military vehicles, weapons systems, and munitions. Its product lines include wheeled combat and tactical vehicles; battle tanks and infantry vehicles; munitions and propellant; rockets and gun systems; and axle and drivetrain components and aftermarket parts. This group also manufactures and supplies engineered axles, suspensions, and brakes for heavy-load vehicles for military and commercial customers. The company Advisors' Opinion:

  • [By Dividends4Life]

    Linked here is a detailed quantitative analysis of General Dynamics (GD). Below are some highlights from the above linked analysis: Company Description: General Dynamics is the world's fourth largest military contractor and also one of the world's biggest makers of corporate jets.

  • [By Rex Moore]

    The Navy League's Sea-Air-Space Exposition is the largest maritime expo in the U.S., and brings together dozens of defense contractors and military decision-makers. The Motley Fool's Rex Moore was at the event in National Harbor, Maryland, and saw demonstrations of several technologies. In the video below he shows us how General Dynamics (NYSE: GD  ) is increasing the capability of U.S. submarines, including new ways to launch and recover the Lockheed Martin (NYSE: LMT  ) autonomous underwater vehicle.

  • [By Rich Smith]

    According to the DSCA, contractors General Dynamics (NYSE: GD  ) , Boeing (NYSE: BA  ) , and Wyle Laboratories are in line to perform avionics software upgrades and engine component improvements and to sell ground support equipment, spare parts, technical documentation, and other "technical and logistics support services" to Kuwait for an estimated $200 million.

  • [By Rich Smith]

    General Dynamics' (NYSE: GD  ) earnings report this past week continued a trend of stronger-than-expected results out of America's defense contractors. Make sure to read that with the emphasis on "than expected," however -- because objectively speaking, the news really wasn't that great.

Best Dividend Stocks To Watch Right Now: Scana Corporation(SCG)

SCANA Corporation and its subsidiaries engage in the generation, transmission, distribution, and sale of electricity to retail and wholesale customers in South Carolina. It owns nuclear, coal, hydro, oil and gas, and biomass generating facilities. The company also purchases, sells, and transports natural gas; offers energy-related risk management services; acquires, owns, and provides financing for nuclear fuel, fossil fuel, and emission allowances; and offers service contracts on home appliances, and heating and air conditioning units. In addition, SCANA Corporation owns two liquefied natural gas plants, including one located near Charleston, and the other in Salley, South Carolina; and provides tower site construction, management, and rental services in South Carolina and North Carolina. As of December 31, 2010, the company supplied electricity to approximately 660,000 customers; and natural gas to approximately 482,000 residential, commercial, and industrial customers i n North Carolina, and 313,500 customers in South Carolina, as well as to approximately 460,000 customers in Georgia. Further, SCANA Corporation owns and operates a 500-mile fiber optic telecommunications network and Ethernet network, and data center facilities in South Carolina. Through a joint venture, it builds, manages, and leases communications towers with interest in 2,280 miles of fiber in South Carolina, North Carolina, and Georgia. The company?s retail customers comprise municipalities, electric cooperatives, other investor-owned utilities, registered marketers, and federal and state electric agencies. It primarily serves chemicals, educational services, paper products, food products, lumber and wood products, health services, textile manufacturing, rubber and miscellaneous plastic products, and fabricated metal products industries. The company is based in Cayce, South Carolina.

Advisors' Opinion:
  • [By Roger Conrad]

    And it's what SCANA Corp. (SCG) is locked-in to deliver, at least to the end of the decade. The company's biggest project is constructing two 1,117-mega-watt nuclear reactors using Toshiba-Westinghouse's AP 1000 model.

  • [By Chuck Carnevale]

    SCANA Corp (SCG): A Low Growth Regulated Utility

    Our first example plots SCANA Corp. whose earnings growth rate has averaged only 3.3% per annum. Here, we would like to remind the reader that our position is that fair valuation is a function of the earnings yield that ��urrent earnings��represent. Consequently, purchasing a company at fair valuation implies that the investor is making a sound financial decision. However, as previously stated, this does not necessarily guarantee a high future rate of return. As we will illustrate in Part 2, that will be determined by the company�� future earnings growth rate.

Friday, April 25, 2014

Choose Wisely With 'Frontier Market' ETFs

Frontier markets are on the outer fringe of the international investment community, and are considered less developed than emerging markets. 

In addition, they generally involve countries with questionable political and economic stability due to leadership missteps. 

Many of these countries are located in the Middle East, Africa, and South America -- which also represent hard-to-reach areas for new capital.  As a result, choosing the right region and opportunity can make or break your portfolio.

The largest diversified ETF in this space is the iShares MSCI Frontier 100 ETF (NYSE: FM), which has over $800 million invested primarily in Kuwait, United Arab Emirates, and Qatar equity securities. These three countries make up nearly 58 percent of the total portfolio allocation, which makes FM heavily weighted towards oil-rich countries in the Middle East. Despite the plethora of commodity production, the largest sector weightings in this ETF represent financial and banking stocks. 

Related: Currency ETFs Offer Access To Unconventional Markets

So far this year, FM has gained 13.82 percent and has handily beaten many other broad-based international rivals.  For the sake of comparison, the Vanguard FTSE Emerging Markets ETF (NYSE: VWO) has been largely flat over that same time frame. 

Despite the strong performance of this broad frontier market index, several individual countries have experienced mixed results this year.  

The iShares MSCI Chile Capped ETF (NYSE: ECH) is a portfolio of 42 stocks in South America that has lost more than three percent this year. By contrast, the Market Vectors Egypt ETF (NYSE: EGPT) has gained more than 31 percent and is far surpassing its Middle Eastern peers.  This ETF is primarily made up of mid and small-cap financial stocks, along with select telecommunication and materials companies. 

Egypt's strong performance is attributed to the nation's approval of a new constitution and recent stabilization on the political front after years of turmoil.

Despite the inherent risks of investing in unproven regions, many investors see these undiscovered areas as pockets of opportunity -- that can be exploited prior to these countries gaining wider acceptance among foreign investors. Typically frontier markets have more attractive valuations than emerging or developed economies, and can offer higher dividend yields as well.

It's this very balancing act of risk versus reward that make frontier markets an intriguing investment opportunity for ETF investors. 

Posted-In: Chile Egypt frontier markets geopolitics Kuwait Middle East qatar South America United Arab EmiratesNews Top Stories Emerging Markets Eurozone Specialty ETFs Emerging Market ETFs Events Global Economics Markets ETFs Best of Benzinga

© 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

  Most Popular Apple Soars Following Q2 Top & Bottom Line Beat, Stock Split, Dividend Raise, Increased Buyback Market Wrap For April 23: S&P 500 Ends Winning Streak, Apple Announces 7-for-1 Stock Split Apple Earnings Roundup: iPhone Strength, Stock Split, Buybacks And More Earnings Scheduled For April 24, 2014 Facebook Earnings Breakdown: After A Blowout Quarter, Could The Momentum Continue? 5 Companies That Apple Should Buy Related Articles (ECH + EGPT) Choose Wisely With 'Frontier Market' ETFs ETF Outlook for Tuesday, April 1, 2014 (IGE, SPY, EGPT, IEV) Three Unusual ETF Leaders in 2014 Around the Web, We're Loving... AOL, Microsoft Offer Premium Content

Thursday, April 24, 2014

FINRA Reverses Schwab Class Action Waiver Decision

The Financial Industry Regulatory Authority’s Board on Thursday found that Charles Schwab & Co. violated FINRA rules when the firm attempted to keep investors from participating in judicial class actions by adding waiver language to customer account agreements.

The ruling affirms in part and reverses in part an earlier FINRA Hearing Panel decision, in which the panel found that Schwab’s waiver violated FINRA rules that limit the language that firms may place in pre-dispute arbitration agreements but concluded that FINRA could not enforce those rules because they were in conflict with the Federal Arbitration Act (FAA).

The Board, FINRA said, overturned this finding and determined that the FAA does not preclude FINRA’s enforcement of its rules.

In addition, the Board upheld the Hearing Panel’s determination that Schwab’s attempt to prevent FINRA arbitrators from consolidating more than one party’s claims in a FINRA arbitration forum violated FINRA rules.

As FINRA explains, the Board decision would have remanded the case to the Hearing Panel for a determination of appropriate sanctions.

However, Schwab instead entered into a settlement, agreeing to pay a fine of $500,000 and to notify all of its customers that the Class Action Waiver requirement has been withdrawn from its customer account agreements and is no longer in effect. “This fully resolves the matter,” FINRA said.

Schwab said in a statement that it is “pleased to resolve this dispute with FINRA, and to put to rest any client concerns on this issue. Over the last year, we heard clearly that a number of our clients and members of the general public have strong feelings about maintaining access to class action lawsuits. In a business like ours where our reputation and public trust are key to our success, we take perspectives like those very seriously.”

The Schwab statement said the company has “agreed with FINRA to remove the waiver from our account agreements, rather than seeking further legal appeals on the matter,” stating this “is in our clients’ and the company’s best interest.”

Schwab went on to say that the company “initially made the decision to require individual arbitration of disputes based on principled reasoning and careful analysis of how to provide clients with the best means of dispute resolution. We believed, and still believe, that FINRA arbitration is the best means for investors to resolve disputes with their brokerage firm, but we will maintain their access to class-action lawsuits should they prefer that option.”

In October 2011, Schwab sent amendments to its customer account agreement to more than 6.8 million investors. The amendments included waiver provisions that required customers to agree that any claims against Schwab be arbitrated solely on an individual basis and that arbitrators had no authority to consolidate more than one party's claims.

The North American Securities Administrators Association filed an amicus brief last May in support of FINRA. Former NASAA President Heath Abshure said at the time that “Charles Schwab’s attempt to unilaterally alter its account agreements to include the class-action waiver is an obvious attempt by the firm to insulate itself from liability to its own clients.”

NASAA said Thursday that Schwab’s decision to include class action waivers in the arbitration provisions of its customer contracts "is yet another example of the harmful effects of mandatory arbitration clauses and heightens the need to pass the Investor Choice Act (H.R. 2998)" introduced by Rep. Keith Ellison, D-Minn.

The legislation, which NASAA said now has 29 cosponsors, "would end the use of mandatory pre-dispute agreements by broker-dealers and investment advisors, and would guarantee class-action participation." These agreements, "especially when coupled with class-action waivers, effectively eliminate any reasonable chance for retail investors with small-dollar claims to have their claims heard in an unbiased and fair forum,” NASAA said.

FINRA’s Board of Governors may call for review and issue a decision involving a matter before the National Adjudicatory Council as was done in Schwab’s case. In February 2013, a FINRA Hearing Panel dismissed two of three causes from a February 2012 FINRA complaint. FINRA and Schwab both appealed this decision to the NAC in February 2013.

Wednesday, April 23, 2014

Apple Jumps on Earnings Beat, Stock Split

Updated from 4:08 p.m. to include comments from the conference call and updated share price.

NEW YORK (TheStreet) -- Apple (AAPL) shares jumped after the tech giant posted fiscal second-quarter earnings that beat Wall Street estimates, and announced a 7 for 1 stock split.

Apple reported second-quarter earnings of $11.62 a share, generating $45.6 billion in revenue. The company shipped 43.7 million iPhones, 16.4 million iPads, and shipped 4.1 million Macs during the quarter. Gross margin, a highly watched level for Apple, came in at 39.3%. On the conference call, Apple noted there are more than 800 million iTunes accounts, up from a previous number of around 600 million.

Apple CEO Timothy D. Cook noted on the call that Apple has sold more than 20 million Apple TV set-top boxes since the product was introduced. For the fiscal third quarter, Apple said it expects revenue between $36 billion and $38 billion, with gross margins between 37% and 38%. Operating expenses will be between $4.4 billion and $4.5 billion, and it will have a tax rate of 26.1%. Shares were soaring in after-hours trading, gaining 7.7% to $564.99.
WATCH: More market update videos on TheStreet TV | More videos from Kori Hale "We're very proud of our quarterly results, especially our strong iPhone sales and record revenue from services," said Cook in the earnings press release. "We're eagerly looking forward to introducing more new products and services that only Apple could bring to market." "We generated $13.5 billion in cash flow from operations and returned almost $21 billion in cash to shareholders through dividends and share repurchases during the March quarter," said Peter Oppenheimer, Apple's CFO, in the release. "That brings cumulative payments under our capital return program to $66 billion." Analysts surveyed by Thomson Reuters were expecting the Cupertino, Calif.-based Apple to report earnings of $10.18 a share on $43.53 billion in revenue, as Apple continues to promise new products and new categories. Apple also announced that it was upping its capital allocation program to over $130 billion by the end of calendar year 2015. As part of the program, the Board increased its share repurchase authorization to $90 billion from $60 billion, and boosted its quarterly dividend by 8% to $3.29 a share. "The Company also plans to increase its dividend on an annual basis. With annual payments of $11 billion, Apple is among the largest dividend payers in the world," the company said in the release. From August 2012 through March 2014, Apple has spent $66 billion in cash on its capital return program. Apple will access the public debt markets this year to help paying for the program, and raise an "amount of term debt similar to what the Company raised during 2013." "We are announcing a significant increase to our capital return program," Cook said, when discussing the allocation program. "We're confident in Apple's future and see tremendous value in Apple's stock, so we're continuing to allocate the majority of our program to share repurchases. We're also happy to be increasing our dividend for the second time in less than two years." "We believe our current stock price does not reflect the true value of the company," both Cook and new CFO Luca Maestri said on the call. The Board of Directors also announced a seven-for-one stock split, effective June 2, 2014. Shares will will begin trading on a split-adjusted basis on June 9, 2014. On the conference call, Cook noted Angela Ahrendts, the former CEO of Burberry, would be joining Apple's executive team next week, as she helps to lead Apple's retail stores.

Shares of Apple closed the regular session lower, falling 1.3% to close at $524.75. --Written by Chris Ciaccia in New York >Contact by Email. Follow @Chris_Ciaccia

Stock quotes in this article: AAPL 

How America Won the Space Race and Entered the Nuclear Age

On this day in economic and business history...

"HERE MEN FROM THE PLANET EARTH FIRST SET FOOT UPON THE MOON JULY 1969, A.D. WE CAME IN PEACE FOR ALL MANKIND."
--Inscription on the Apollo 11 lunar module plaque.


Apollo 11 takes off on a Saturn V booster rocket. Source: NASA.

Houston, Texas, July 16, 1969, according to Marvin Miles of the Los Angeles Times:

Apollo 11 vaulted toward the Moon to make a dream come true -- to land men on Earth's satellite, unlock the secrets of its origin, and perhaps explain the mystery of Earth itself.

The incredible quest began from Cape Kennedy at 6:32 a.m. Pacific Daylight Time [9:32 Eastern] when a gleaming, 36-story Saturn V launch rocket thundered skyward to hurl aloft three astronaut-explorers.

They were Apollo 11 commander Neil A. Armstrong, Edwin E. Aldrin Jr., lunar module pilot, and Michael Collins, command module pilot. Theirs is the most audacious space mission yet, with a glittering role in history if they succeed.

The moment of truth in the daring drama should be played before a television audience of millions late Sunday night when Armstrong first steps from the landing craft onto the desolate lunar Sea of Tranquility.

Four days later, on July 20, Armstrong and Aldrin's lunar module, bearing its iconic plaque and stiffened flag, touched down on the Sea of Tranquility. It completed the monumental goal first set by President John F. Kennedy in 1961, of "landing a man on the moon and returning him safely to the earth" by the end of the 1960s. The success of Apollo 11 capped off a frenetic burst of space progress -- Apollo 8, the first craft ever to orbit the Moon (but not touch down), had launched only seven months earlier.

The Apollo program, beyond providing an incredible boost to national confidence, also advanced the frontiers of technology in a number of worthwhile ways. Here's a list of some of the program's key innovations that have filtered down to our lives:

The space suits used to explore the Moon led to advances in gas masks, new fabrics for blimps and other lighter-than-air aircraft, and a drug-production containment system currently in use by co-developer Eli Lilly (NYSE: LLY  ) . Suit technology was also adapted to improve athletic shoes in the 1990s and to develop roofing systems for major sports stadiums, including Houston's own Reliant Stadium. Filtration systems used to ensure supplies of safe drinking water on the Apollo missions have been adapted for kidney dialysis, Earth-bound water filtration, and the industrial HVAC (heating, ventilation, and air conditioning) industry. Other medical systems derived from or improved by Apollo technology include pacemakers, heart monitors, CAT scans, and MRIs. Neither solar panels nor semiconductors were invented for Apollo, but both technologies were pushed forward by the need for advanced power and control systems. Both technologies actually improved in tandem during the Apollo program's lifetime, as the cost of solar cells was largely tied to reductions in integrated-circuit transistor sizes through the 1960s. The Apollo Guidance Computer, or AGC, built by Raytheon (NYSE: RTN  ) for Moon-bound missions, was the first computer of its kind to use integrated circuits, which were designed by chip-making pioneer Fairchild Semiconductor.

The AGC was also extremely advanced for its era, sporting a clock speed of roughly 1 megahertz and 2 kilobytes of memory. The PC, which launched in 1981, had a 4 MHz processor and 16 KB of memory, but the AGC made up for weaker hardware with the ability to multitask eight programs at the same time, whereas early PCs were limited to one program -- and even today we rarely run eight different programs at the same time. The AGC was actually smaller than the early PCs; with space at a premium, its designers packed everything, display included, into a package barely larger than today's tablets.

We've come a long way in terms of computing power, but it's not always put to good use, as comedian Bill Murray will tell you:

My iPhone has 2 million times the storage of the 1969 Apollo 11 spacecraft computer. They went to the moon. I throw birds at pig houses.

— Bill Murray (@BiIIMurray) April 5, 2013

The ultimate power to destroy
The first successful nuclear-bomb test, codenamed Trinity, took place at the Alamogordo, N.M. bombing range on July 16, 1945. A squat-looking contraption, a.k.a. "The Gadget," went off with the force of nearly 20 kilotons (20,000 tons) of TNT, validating the work of the Manhattan Project and setting the stage for the American bombing of Hiroshima less than a month later to end World War II. Upon witnessing the fireball and the mushroom cloud, project director J. Robert Oppenheimer thought of a line from the sacred Hindu text Bhagavad Gita: "Now I am become Death, the destroyer of worlds."

A diamond in the rough
The South African diamond rush, a sparkly carbon equivalent of California's Gold Rush, began on July 16, 1871 with the discovery of a massive 83.5-carat diamond in Colesburg Kopje, which is today known as Kimberly. The most important outcome of that discovery wasn't an economic explosion in South Africa as had been seen in California. Rather, South Africa's diamond excavations soon gave rise to the De Beers diamond cartel, founded by Cecil Rhodes with funding from the infamous Rothschild banking dynasty. Before the turn of the century De Beers had evolved into the monopolistic cartel that has in recent decades attracted its fair share of bad press.

Ever wondered why a diamond ring is now the standard way to propose to your future marriage partner? You can thank De Beers. Its legendary "A Diamond is Forever" ad campaign, one of the most successful such campaigns of all time, is all but single-handedly credited with sparking the boom in diamond engagement ring sales that began after it launched in the late 1940s. Until that time, it seemed the not-all-that-uncommon rock (go ahead and try to sell a diamond ring for anything close to its retail price) would soon be on its way out, a symbol of glitzy excess made unfashionable by the lingering Great Depression. Eventually, De Beers got even pushier about the diamond ring, urging husbands-to-be to pony up two months of their salary for that piece of "forever."

The Dow's legacy of Apollo
The Dow Jones Industrial Average (DJINDICES: ^DJI  ) first broke through the 8,000-point level on July 16, 1997. The reason for the Dow's massive bull run, according to The New York Times, was simple: "America is in the midst of a stunning, seven-year-long economic expansion. Corporate profits are soaring, unemployment is at a 24-year low, and yet inflation remains benign." The Dow had doubled in less than three years. However, even then some analysts warned that stocks were starting to look a little overvalued, and a growing number believed the Dow would end the year back below 8,000.

It didn't. By the time the Dow topped out in early 2000, it had gained another 45%. However, the decade that followed offered little relief for long-term shareholders. The Dow did wind up falling below 8,000 points again, but it wasn't until near the end of the 2007-2009 financial crisis.

If you think the era of American technological leadership is over and the lessons of Apollo forgotten, we'd like to change your mind, because the future is made in America. Domestic manufacturing is poised to once again become the investment driver of the world, and all because of one disruptive technology. You can uncover the three companies that will help drive a whole new wave of innovation in The Motley Fool's new free report. Just click here to read more.

Monday, April 21, 2014

Brands Reaching Across Gender Lines

Having a niche is the key to many successful businesses. Retailers, especially, benefit from being the company that's really good at that one thing. But as companies look to expansion, they're trying to branch out of those niches and try new things.

One way that apparel companies are pushing the boundaries is by expanding their consumer base. Companies that had focused on men's clothing are offering women's lines, and vice versa. Two brands that are seeing some great success already are Under Armour (NYSE: UA  ) and Coach (NYSE: COH  ) . The gender expansion plays a big role in these companies' futures, and their actions are laying out a path for others to follow.

Title IX comes to shirts
Under Armour began its life as a solution to a problem at the University of Maryland's athletic department. Football players were sweating a lot -- shockingly -- and it was making their shirts heavy and unwieldy. By using a better fabric, Under Armour was able to make clothes that didn't suffer as much in the heat. The line quickly spread across the football community, with the help of some good advertising and endorsements.

That beginning led Under Armour down the path of selling mainly to competitive male athletes. In 2008, women's revenue accounted for only about 25% of total apparel. That presented the company with an opportunity to really expand its sales without having to build more locations. With a focus on women's sales, that part of the business is now generating more than 35% of the company's apparel revenue.

The business has grown on the back of the company's studio offering -- which aligns with lululemon athletica's (NASDAQ: LULU  ) offerings -- and its Armour Bra line. The change in product mix highlights the danger that companies take on when they expand -- new competition.

Lululemon is the biggest competitor that a push into women's clothing will bring Under Armour in new contact with. The yogawear retailer sells $1.4 billion worth of clothing annually, putting it well ahead of Under Armour's women's revenue position, but the payoff is clear. If Under Armour can keep attracting more female customers, it can really break out.

It's not a purse -- it's European
Working the other way across the gender gap, Coach is making a push for more revenue from its men's line. The company is hoping to hit $600 million in revenue this year, which would be a 50% increase from 2012. The growth is being driven by an increase in men's accessories along with a strong real estate push.

The Coach men's line is now in 600 of its stores, with some outlets focused on the line. One of the biggest drivers for Coach has been that carrying men's options can bring more women into the store. The brand isn't necessarily looking for the kind of equality that Under Armour has planned out, instead being happy to have men's offerings as a driver of foot traffic.

Because of its potential, and the limited competition, Coach is really focusing on the men's line over the next year. Earlier in the year, the company showed how that single-mindedness can be a burden, if it causes you to lose focus on your core demographic. Coach fell short in sales of North American handbags, in part because of the effort put into the men's line.

For both companies, the payout is worth the risk of increased competition and focus. By expanding into businesses that target both genders, Under Armour and Coach are opening up a huge source of potential income and, hopefully, getting out ahead of their competitors. While there is a risk, I imagine more companies will follow their lead, hoping to find success across the spectrum.

The shift to attract customers of both genders isn't the only one occurring in retail these days -- the retail space is actually in the midst of the biggest paradigm shift since mail order took off at the turn of last century. Only those most forward-looking and capable companies will survive, and they'll handsomely reward those investors who understand the landscape. You can read about the 3 Companies Ready to Rule Retail in The Motley Fool's special report. Uncovering these top picks is free today; just click here to read more.

Top Healthcare Equipment Stocks To Buy Right Now

European (SXXP) stocks climbed as mining shares rallied and Alcoa Inc. began the U.S. earnings season with profit that beat analysts��estimates.

BHP Billiton Ltd. (BHP) and Rio Tinto Group, the world�� largest mining companies, advanced at least 3.5 percent. Repsol SA increased the most in a month after saying it discovered natural gas in Algeria. Lagardere SCA (MMB) lost the most in four months after selling its stake in European, Aeronautic, Defence & Space Co.

The Stoxx Europe 600 Index added 0.2 percent to 288.07 at the close of trading. The gauge yesterday rebounded from the biggest three-day selloff since July as German industrial output increased more than forecast. The measure has gained 3 percent this year as U.S. lawmakers agreed on a compromise budget and data fueled optimism the world�� biggest economy is recovering.

��t�� very much the U.S. first but Europe not that far behind,��Kevin Gardiner, head of investment strategy for Europe, Middle East and Africa at Barclays Plc�� wealth- management unit in London, told Francine Lacqua on Bloomberg Television. ��lthough the euro zone itself is not growing very quickly, if the global economy is growing OK, that��l help the European exporters and the big multinationals in European exchanges to do pretty well too.��

Top Healthcare Equipment Stocks To Buy Right Now: Dr Pepper Snapple Group Inc (DPS)

Dr Pepper Snapple Group, Inc. (DPS), incorporated on October 24, 2007, is an integrated brand owner, manufacturer and distributor of non-alcoholic beverages in the United States, Canada and Mexico with a diverse portfolio of flavored (non-cola) carbonated soft drinks (CSDs) and non-carbonated beverages (NCBs), including ready-to-drink teas, juices, juice drinks and mixers. The Company operates in three segments: Beverage Concentrates, Packaged Beverages and Latin America Beverages. The Company primarily serves two groups of customers: bottlers and distributors and retailers. As of December 31, 2011, it operated 20 manufacturing facilities across the United States and Mexico, excluding its manufacturing facility for its joint venture with Acqua Minerale San Benedetto. Effective March 1, 2013, it acquired Dr. Pepper/7-UP Bottling Co of the West, a producer and wholesaler of bottled soft drinks.

Beverage Concentrates

The Company�� Beverage Concentrates segment is principally a brand ownership business. In this segment the Company manufactures and sells beverage concentrates in the United States and Canada. Most of the brands in this segment are CSD brands. Its brand portfolio includes CSD brands, such as Dr Pepper, Sunkist soda, 7UP, A&W, Canada Dry, Crush, Squirt, Penafiel and Schweppes. Beverage concentrates are shipped to third party bottlers, as well as to its own manufacturing systems, who combine them with carbonation, water, sweeteners and other ingredients, package it in PET containers, glass bottles and aluminum cans, and sell it as a finished beverage to retailers. Beverage concentrates are also manufactured into syrup, which is shipped to fountain customers, such as fast food restaurants, who mix the syrup with water and carbonation to create a finished beverage at the point of sale to consumers. Its Beverage Concentrates brands are sold by its bottlers, including its own Packaged Beverages segment, through all retail channels, including supermarkets, fountains, mas! s merchandisers, club stores, vending machines, convenience stores, gas stations, small groceries, drug chains and dollar stores.

Packaged Beverages

The Company�� Packaged Beverages segment is principally a brand ownership, manufacturing and distribution business. In this segment, it primarily manufacture and distribute packaged beverages and other products, including its brands, third party owned brands and certain private label beverages, in the United States and Canada. Key NCB brands in this segment include Hawaiian Punch, Snapple, Mott's, Yoo-Hoo, Clamato, Deja Blue, AriZona, FIJI, Mistic, Nantucket Nectars, ReaLemon, Mr and Mrs T, Rose's and Country Time. Key CSD brands in this segment include 7UP, Dr Pepper, A&W, Sunkist soda, Canada Dry, Squirt, RC Cola, Big Red, Sun Drop, Diet Rite, IBC and Vernors. Approximately 87% of its 2011 Packaged Beverages net sales of branded products come from its own brands, with the remaining from the distribution of third party brands, such as Big Red, AriZona tea, FIJI mineral water, Neuro beverages, Vita Coco coconut water and Hydrive energy drinks. A portion of its sales also comes from bottling beverages and other products for private label owners or others, which is also referred to as contract manufacturing. Its Packaged Beverages��products are manufactured in multiple facilities across the United States and are sold or distributed to retailers and their warehouses by itsown distribution network or by third party distributors. The Company sells its Packaged Beverages��products both through its Direct Store Delivery system (DSD), supported by a fleet of approximately 6,000 vehicles and 12,000 employees, including sales representatives, merchandisers, drivers and warehouse workers, as well as through its Warehouse Direct delivery system (WD), both of which include the sales to retail channels, including supermarkets, fountain channel, mass merchandisers, club stores, vending machines, convenience stores, gas stations, small groce! ries, dru! g chains and dollar stores.

Latin America Beverages

The Company�� Latin America Beverages segment is a brand ownership, manufacturing and distribution business. This segment participates mainly in the carbonated mineral water, flavored CSD, bottled water and vegetable juice categories, with particular strength in carbonated mineral water, vegetable juice categories and grapefruit flavored CSDs. Its brands include Squirt, Penafiel, Aguafiel, Crush and Clamato.

In Mexico, it manufactures and distributes its products through its bottling operations and third party bottlers and distributors. In the Caribbean, it distributes its products through third party bottlers and distributors. In Mexico, it also participate in a joint venture to manufacture Aguafiel brand water with Acqua Minerale San Benedetto. The Company sells its finished beverages through Mexican retail channels, including mom and pop stores, supermarkets, hypermarkets, and on premise channels.

The Company competes with The Coca-Cola Company (Coca-Cola), PepsiCo, Inc. (PepsiCo), Nestle, S.A. (Nestle), Kraft Foods Inc. (Kraft) and The Cott Corporation (Cott).

Advisors' Opinion:
  • [By Patricio Kehoe]

    The first on the list is The Coca-Cola Company (KO), in which Citadel disclosed a $267 million stake with over 6.46 million shares. The Coca-Cola Company is the best global brand (in terms of brand equity) and the world麓s largest producer of soft drinks. The company sells products in more than 200 countries and owns or licenses more than 500 brands. It operates in a highly competitive industry with PepsiCo (PEP), Nestle (NSRGY), Groupe Danone (GPDNF), Kraft Foods (KRFT) and Dr. Pepper Snapple Group (DPS). Due to this, the firm's strategy is to use its brands and financial strength to achieve long-term growth. Additionally, it has created an extensive and well-organized global distribution system, which cannot be replicated by any of its competitors at least at a reasonable cost. It has a proven commitment to returning cash to investors, with a current dividend yield of 2.94% which is considered quite good to protect investors' purchasing power.

  • [By Muhammad Bazil]

    Coca-Cola, PepsiCo and Dr. Pepper Snapple (DPS) are the three major soda makers making great waves in the soft drink market. However, of the three companies, Coca-Cola maintains the largest market share globally. The company takes the lead in the U.S, with 41.9% market dominance, followed by PepsiCo, with 28.5% market share. Dr. Pepper Snapple keeps a distant third position with 16.7% market dominance level. However, in terms of stock performance in the last five years, Dr. Pepper Snapple takes the lead with a 95% gain in share price to investors. Coca-Cola trails with an 80% price gain, while PepsiCo lags behind them with 38% price gain to investors during the same time frame. The Coca-Cola stock maintains a price earnings ratio similar to PepsiCo, but the stock trades at a premium of 6% when compared with PepsiCo and Dr. Pepper Snapple, which are its two main competitors in the market. On the scale of dividend yield, Coca-Cola offers investors a dividend yield of 3% compared to 2.85% for PepsiCo and 3.45% for Dr. Pepper Snapple.

Top Healthcare Equipment Stocks To Buy Right Now: Credit Lyonnais SA (CLP)

Cr茅dit Lyonnais Group is engaged in retail financial services, asset management and investment and corporate banking. The Company's banking activities include personal banking, professional and small business banking, e-banking and middle market banking. The Company offers cash management and associated services, international business, advisory services and corporate finance. Its asset management services are involved in mutual funds, institutional clients and defining the investment strategy for the domestic private banking unit. The Company also offers structured finance, export finance and international trade finance. Cr茅dit Lyonnais has a network of 1,834 branches in France and operations in 55 countries worldwide. Advisors' Opinion:
  • [By Sean Williams]

    Another growth driver looks to be its pending $8.6 billion merger with Colonial Properties Trust (NYSE: CLP  ) . The combined entity would become the second-largest U.S. based residential REIT, with 85,000 apartment units. Opposition to the deal from some of Colonial's shareholders does exist, but comparatively speaking, MAA is in great shape either way. It already has a high occupancy rate, and the addition of Colonial's properties would only further serve to enhance its rental pricing power.

Top US Companies To Buy Right Now: Synutra International Inc.(SYUT)

Synutra International, Inc., through its subsidiaries, engages in the production, marketing, and distribution of dairy based nutritional products primarily in the People?s Republic of China. The company offers powdered infant and adult formula products for adults and children under the Super, U-Smart, My Angel, Mingshan, and Helanruniu brand names; prepared baby food for babies and children under the Huiliduo brand name; and nutritional ingredients and supplements, such as chondroitin sulfate, microencapsulated Docosahexanoic Acid, and Arachidonic Acid. It also sells milk powder, whey protein, and raw milk to industrial customers. The company markets its products under Shengyuan or Synutra brands. It sells its products through sales and distribution network covering 30 provinces and provincial-level municipalities in China. Synutra International, Inc. is headquartered in Rockville, Maryland.

Advisors' Opinion:
  • [By Seth Jayson]

    Synutra International (Nasdaq: SYUT  ) reported earnings on June 13. Here are the numbers you need to know.

    The 10-second takeaway
    For the quarter ended March 31 (Q4), Synutra International missed estimates on revenues and beat expectations on earnings per share.

  • [By Seth Jayson]

    Synutra International (Nasdaq: SYUT  ) is expected to report Q4 earnings on June 13. Here's what Wall Street wants to see:

    The 10-second takeaway
    Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Synutra International's revenues will contract -9.1% and EPS will decrease -84.6%.

Top Healthcare Equipment Stocks To Buy Right Now: Snam SpA (SRG)

Snam SpA is an Italy-based company engaged in the management of natural gas services. The Company is diversified into four operating segments. The Transportation segment covers transportation-related gas services, including capacity management and transportation of the gas at the entry points of the gas network to the redelivery points. It owns transportation infrastructures of gas pipelines. The Regasification segment is focused on extraction activities of natural gas, its liquefaction for transport by ship and subsequent regasification. The Storage segment covers deposits, gas treatment plants, compression plants and the operational dispatching system. The Distribution segment engages gas distribution through local transportation networks from delivery points at the metering and reduction stations to the gas distribution network redelivery points at the end customers. Additionally, Snam SpA as the parent company, focuses on planning, management, coordination and control of the group. Advisors' Opinion:
  • [By Victor Selva]

    The Specialty Restaurant Group (SRG), which includes Bahama Breeze and The Capital Grille, has grown over the last couple of quarters. Eddie V's Restaurants and Yard House might be meaningful long-term drivers, as we think most of the growth in the next years will come from the acquisition of those restaurants.

  • [By Tom Stoukas]

    Snam SpA (SRG) dropped the most in almost a year as Eni SpA sold an 11.7 percent stake in the owner of Italy�� biggest natural-gas network. Wm Morrison Supermarkets Plc tumbled the most in more than 14 months. Experian Plc jumped to a record after the world�� largest credit-checking company raised its dividend and announced a share buyback.

Top Healthcare Equipment Stocks To Buy Right Now: Mindray Medical International Limited (MR)

Mindray Medical International Limited, through its subsidiary, Shenzhen Mindray Bio-Medical Electronics Co., Ltd., develops, manufactures, and markets medical devices worldwide. It operates in three segments: Patient Monitoring and Life Support Products, In-Vitro Diagnostic Products, and Medical Imaging Systems. The Patient Monitoring and Life Support Products segment offers patient monitoring devices that track the physiological parameters of patients, such as heart rate, blood pressure, respiration, and temperature. This segment?s patient monitoring devices are suitable for adult, pediatric, and neonatal patients and are used principally in hospital intensive care units, operating rooms, and emergency rooms. This segment provides single and multiple-parameter monitors, mobile and portable multifunction monitors, central stations that could collect and display multiple patient data on a single screen, and an electro-cardiogram monitoring device; veterinary monitoring devi ces; and anesthesia machines, as well as defibrillators, surgical beds, and surgical lights. The In-Vitro Diagnostic Products segment offers data and analysis on blood, urine, and other bodily fluid samples for clinical diagnosis and treatment. This segment also provides semi-automated and fully-automated in-vitro diagnostic products for laboratories, clinics, and hospitals. In addition, this segment offers hematology analyzers and biochemistry analyzers, and reagents. The Medical Imaging Systems segment provides ultrasound systems, which are employed in medical fields consisting of urology, gynecology, obstetrics, and cardiology; digital radiography systems; and a magnetic resonance imaging system. The company serves distributors, original design manufacturers, original equipment manufacturers, and hospitals and government agencies. Mindray Medical International Limited was founded in 1991 and is headquartered in Shenzhen, the People?s Republic of China.

Advisors' Opinion:
  • [By John Udovich]

    China is set to ease the one child policy, something that could benefit Chinese stocks in general but be especially beneficial to insurance stocks like China Life Insurance Company Ltd (NYSE: LFC) and CNinsure Inc (NASDAQ: CISG) plus health care stocks like Mindray Medical International Ltd�(NYSE: MR) and Concord Medical Services Hldg Ltd (NYSE: CCM). First, let�� be clear that China is NOT abolishing the one child policy as the changes will merely�allow married couples to have two children if one spouse is an only child plus it will be up to China�� 34 province-level administrations to revise�their laws and put the new policy into effect. Moreover, China�� family-planning bureaucracy employs more than 500,000 full-time workers and six million part-time workers all the way down to the village level to�collect billions of dollars in fines and these bureaucrats have fought for years against policy changes���meaning they could throw up roadblocks if not placated. With that said, the insurance and health care sectors are two sectors with publicly Chinese stocks that look set to�take advantage of the coming changes.

  • [By Keith Speights]

    It's easy to place too much attention on the immediate negatives and too little attention on the bigger positives. I made this mistake in 2011 after buying shares in Mindray Medical (NYSE: MR  ) . I ended up selling my shares for a loss when the stock fell due to weaker-than-expected demand for its medical devices in Europe and the U.S.

  • [By Rich Duprey]

    Medical device manufacturer Mindray Medical (NYSE: MR  ) announced this morning that it has appointed a co-CEO for the company.

    Cheng Minghe, who currently serves as�the company's chief strategic officer -- a position he will maintain -- will join company President�Li Xiting in leading the device maker.

Top Healthcare Equipment Stocks To Buy Right Now: EOG Resources Inc.(EOG)

EOG Resources, Inc., together with its subsidiaries, engages in the exploration, development, production, and marketing of natural gas and crude oil primarily in the United States, Canada, the Republic of Trinidad and Tobago, the United Kingdom, and the People's Republic of China. As of December 31, 2010, its total estimated net proved reserves were 1,950 million barrels of oil equivalent (MMBoe), of which 386 million barrels (MMBbl) were crude oil and condensate reserves, and 152 MMBbl were natural gas liquids reserves; and 8,470 billion cubic feet (Bcf) or 1,412 MMBoe were natural gas reserves. The company held approximately 520,000 net acres in the mature oil window of the Eagle Ford Shale Play near San Antonio, Texas. EOG Resources, Inc. was founded in 1985 and is based in Houston, Texas.

Advisors' Opinion:
  • [By Aimee Duffy]

    Customer diversification and fee-based revenue are tough to beat. Let's look at some of QEP's top customers:

    Anadarko Petroleum EOG Resources (NYSE: EOG  ) Questar (NYSE: STR  ) Ultra Resources, a subsidiary of Ultra Petroleum (NYSE: UPL  )

    EOG Resources accounted for 11% of the midstream unit's revenue in 2012, while Questar accounted for 12%. Ultra is one of the two-largest shippers on QEP's Green River 60-mile crude oil pipeline (the other is Chevron).

  • [By Robert Rapier]

    EOG Resources (EOG) is the largest producer in the Eagle Ford. That's been one of our big winners; it's up 56% over the past year. We still recommend it, although it is getting up around the buy target that we set for it.

  • [By David Smith]

    In addition, Houston-based National Oilwell Varco (NYSE: NOV  ) , a now sizable maker of equipment and components for drilling rigs, serves a crucial part of the energy business worldwide. Further, EOG Resources (NYSE: EOG  ) is one of the truly "oily" independent producers, with prolific operations in the Eagle Ford and Bakken, among other locations.

Top Healthcare Equipment Stocks To Buy Right Now: WageWorks Inc (WAGE)

WageWorks, Inc., incorporated on January 28, 2000, is an on-demand provider of tax-advantaged programs for consumer-directed health, commuter and other employee spending account benefits (CDBs), in the United States. The Company administers and operates a broad array of CDBs, including spending account management programs such as health and dependent care Flexible Spending Accounts (FSAs), Health Savings Accounts (HSAs), Health Reimbursement Arrangements (HRAs), and commuter benefits, such as transit and parking programs. The Company delivers its CDB programs through a scalable delivery model that employer clients and their employee participants may access through a standard Web browser on any Internet-enabled device, including computers, smart phones and other mobile devices such as tablet computers. In January 2013, the Company acquired Benefit Concepts, Inc.

The Company focuses on providing CDB programs to employer clients of any size. It provides marketing programs that are designed to maxmize employee participation in its employer clients��CDB offerings. The Company markets and sells its CDB programs through multiple channels, including direct sales to enterprises, direct sales and through brokers to small and medium-sized businesses (SMBs), and direct sales to industry purchasing and affiliate groups and through channel partners.

Its SMB distribution channel complements its enterprise sales channel and consists of third party advisors, including insurance agents and benefits consultants who typically have two to three enterprise clients and several hundred smaller employer clients, and institutional resellers, including regional and national insurance carriers, health plans, payroll providers, commercial banks and third-party administrators (TPAs). The Company also sells its programs through group purchasing organizations in which the Company negotiate a standard service contract with group purchasing organizations that are formed by industry specific employers to cov! er their members.

The Company competes with TASC, Inc, Aetna, UHC, Aon Hewitt, ADP, Ceridian, CDBs and Bank of America.

Advisors' Opinion:
  • [By John Udovich]

    On Wednesday, small cap employee flexible spending account facilitator Wageworks Inc (NYSE: WAGE) rose 12.22% despite a secondary offering that effectively rewarded insiders plus the stock has tripled since last March. However, Wageworks��CEO recently said in a�conference call last week that he believes the�private health care exchanges related to Obamacare are expanding�the company���market plus WAGE also raised its forecast for full-year growth. So�does that make this small cap a buy?�

Sunday, April 20, 2014

Boeing Stock Has a $10 Billion Secret Weapon

If you ask devoted Boeing (NYSE: BA  ) shareholders why they own it, they'll tell you there are about 787 good reasons to buy Boeing stock today -- and maybe more. Yesterday, Boeing announced that it's landed 102 orders for its most advanced Dreamliner airplane yet, the 787-10, with United Airlines (NYSE: UAL  ) signing up to buy 20 of the new birds, and Air Lease (NYSE: AL  ) and Singapore Airlines tying in the race to buy the most -- 30 Dreamliner-10s apiece.

And yes, the plane is incredibly popular. Boeing has already booked in excess of 840 orders for Dreamliners of various shapes and sizes. At the company's planned year-end, 10-planes-per-month production rate, that works out to a backlog of orders stretching seven years long. But did you know that the 787 Dreamliner isn't the only Boeing product that's doing well?

The best offense is a great defense business
Over on the other end of its business model, Boeing stock has a secret weapon that's getting far less attention than the vaunted Dreamliner -- and far less attention that it deserves.

Source: Wikimedia Commons.

That business is the business of building helicopters -- the CH-47F Chinook heavy-lift helicopter in particular. Over the past week, Boeing has received two blockbuster orders for its big bird. First the U.S. Army granted Boeing a contract to buy 177 Chinooks over the next several years, at a total cost of $4 billion. The Army says it may up that buy by a further 38 helos, potentially pushing the contract value past $4.8 billion.

But that's not all. Within days of receiving the Army contract, Boeing landed a second multibillion-dollar contract -- this time to build an unspecified number of Chinooks for the militaries of Turkey and the United Arab Emirates. Boeing's base contract here is quoted at $3.4 billion in value. If "optioned" helos are ordered on top of the base number, however, the value could rise to just under $5 billion.

Result: close to $10 billion in new revenues for Boeing.

To put that number in context, that's about 60% of the revenues coming into Boeing's Military Aircraft division annually. But as important as these revenues are to Boeing stock, the quality of these revenues may be more so. Boeing's Military Aircraft division may not be as profitable as United Technologies' (NYSE: UTX  ) Sikorsky unit (at 10.5% operating profit margins), or Textron's (NYSE: TXT  ) Bell Helicopter (15%), but with a 9.6% operating margin, it's still the second most profitable manufacturing unit Boeing has.

Long story short, these are big revenues, and high-margin revenues, that Boeing has coming down the runway. The more Chinooks Boeing can sell, the better it will be for Boeing stock.

Boeing operates as a major player in a multitrillion-dollar defense market in which the opportunities and responsibilities are absolutely massive. However, emerging competitors and the company's execution problems have investors wondering whether Boeing will live up to its shareholder responsibilities. The Fool's premium research report on the company provides investors with the must-know issues surrounding Boeing. They'll be updating the report as key news hits, so don't miss out -- simply click here now to claim your copy today.

Saturday, April 19, 2014

Investing 101: Don't be fooled by story lines

People have a natural impulse to hear and tell stories. This desire is formed at an early age as parents read bedtime stories to their children and develops throughout adulthood with various forms of media. Unfortunately, storytelling plays a major role in the financial markets, which more often than not, only serves as distracting noise for investors.

All three major U.S. indices are in negative territory this year. Last week, the Dow Jones industrial average and Standard & Poor's 500 both fell more than 2%, while the Nasdaq dropped 3.1% to post its worst weekly decline in almost two years. In fact, some of the biggest leaders of the bull market have turned into laggards almost overnight. With stocks struggling to keep their impressive momentum from last year, there are plenty of stories to be found that attempt to explain the move.

The most obvious narrative involves a mixture of central bank tightening and an overvalued stock market. The Federal Reserve appears to be set on dialing down its monthly bond purchases at every policy meeting — raising fears of reduced liquidity and higher interest rates. Meanwhile, stocks have rallied for five consecutive years and are inducing flashbacks of bubble-themed finales. In the end, history shows that investors will hear whatever story is playing the loudest.

Investors typically become distracted with either greed or fear. Between 1993 and the market peak in March 2000, investors' allocation to equity funds almost doubled to 62%, according to Vanguard. Naturally, greed was the strongest toward the end of the major move with nearly $400 billion rushing into the dotcom bubble in its final two years — regrettably. Stocks across the board then fell sharply and sent investors running for the hills. Bond funds received $221.5 billion in the two years leading up to 2003, just in time to miss a 53% rebound in stocks over the following two years.

Once again, investors who were caught up in the narrative did not receive a happily-ever-after ! ending. An astounding $424 billion flowed into stock funds in the two years preceding the peak of October 2007. The top was followed by the worst financial downturn since the Great Depression, and the fear generated from the crisis kept millions of investors on the sidelines for years as stocks climbed higher.

"Many investors — both individuals and institutions — are moved to action by the performance of the broad stock market, increasing stock exposure during bull markets and reducing it during bear markets," explained Vanguard. "Such 'buy high, sell low' behavior is evident in mutual fund cash flows that mirror what appears to be an emotional response — fear or greed — rather than a rational one. Not only do investors in aggregate allow their portfolios to drift with the markets, but they also tend to move cash between stock and bond investments in patterns that coincide with recent performance of the equity market."

Where does that leave investors today? The current bull market in stocks officially turned five years old last month, and an argument could be made either way about its longevity. It is the fifth-longest bull market since 1928, but would have to climb higher without a 20% correction for another seven years before surpassing the longest bull market that ran from 1987 to 2000, according to Bespoke Investment Group. Most would agree that this is very unlikely, but it is certainly within the realm of possibility.

Instead of worrying about headlines and the daily narrative, investors should focus on financial aspects they can control. You cannot influence the Fed's policy decisions or the events taking place overseas, but you can make sure you are taking the long view on your financial goals. Create a clear, measurable, and attainable plan that reduces the odds of letting the market incite fear or greed in your investing decisions.

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Follow Eric McWhinnie on Twitter @Mr_Eric_WSCS. Wall St. Cheat Sheet is a USA TODAY content partner offering financial news and commentary. Its content is produced independently of USA TODAY.