Mattel's 4Q Revenue Drops as Barbie Sales Slip

Top 5 Blue Chip Stocks To Own Right Now

Emmanuel Dunand, AFP/Getty Images EL SEGUNDO, Calif. -- Mattel says it was a tough time in toyland this past holiday season.

Shares of Mattel (MAT) dropped more than 9 percent in premarket trading Thursday after the world's largest toy maker said sales of key toys like Barbie and Fisher-Price preschool items dropped in its fourth quarter. CEO Bryan Stockton called 2013 a "challenging and transformative year at retail." Toy makers count on the November and December holiday season to make 40 percent or more of annual revenue. But traditional toy makers are struggling as kids turn more toward electronic devices and video games. While fourth-quarter net income climbed 21 percent from year-ago results depressed by a litigation charge, its quarterly performance missed both analyst estimates and the company's own expectations. For the three months ended Dec. 31, Mattel earned $369.2 million, or $1.07 a share. That compares with $306.5 million, or 87 cents a share, a year ago. The prior-year period included an $87.1 million litigation charge. Analysts surveyed by FactSet expected earnings of $1.19 a share. Revenue dropped 7 percent to $2.11 billion from $2.26 billion. Analysts expected $2.37 billion. Barbie and Fisher-Price sales both declined 13 percent. Sales for Hot Wheels fell 8 percent. One bright spot was American Girl, which reported a 3 percent sales increase. Mattel said the performance was mostly helped by sales of the 2013 Girl of the Year, Saige. CEO Stockton said weakness was mostly in the U.S. and the El Segundo, Calif.-based toy maker is continuing to invest in emerging markets like China and Russia. Mattel's full-year net income increased to $903.9 million, or $2.58 a share, from $776.5 million, or $2.22 a share, in the previous year. Annual revenue edged up 1 percent to $6.48 billion from $6.42 billion.

Non-traded REIT managers have little skin in the game

Insiders and managers of nontraded real estate investment trusts typically own much fewer shares of their REITS than those affiliated with publicly traded REITS, a factor that could influence whether broker-dealers decide to sell shares in non-traded REITs.

A long-held tenet of institutional investing known as “eating your own cooking” or having “skin in the game,” the practice of aligning the interests of investors and REIT managers and executives is gaining importance for some independent broker-dealers, brokerage and REIT executives said.

(Dive in: Inside ownership of 11 big nontraded REITs)

Best selling nontraded REITs of 2013, plus data on management's ownership stake. Sources: Robert A. Stanger & Co. Inc., SNL Financial

According to research conducted by SNL Financial for InvestmentNews, the median percentage of shares owned by insiders of nontraded REITs is 0.25%, with the average being 6.12%. Subtract two nontraded REITs where insiders own 100% of the shares, and the median ownership drops to 0.23% and the average ownership falls to 3.09%.

Insiders and managers of listed REITs typically own far more of their shares, according to SNL. The median percentage of shares owned by insiders of traded REITs is 3.58%; the average is 8.92%.

SNL based its research on 162 traded REITs and 61 nontraded REITs.

BROKER-DEALERS CARE

Most nontraded REITS don't identify the degree of skin the game in their due-diligence analysis, but to some broker-dealers, it's becoming an important part of the process they use to decide whether they want to sell shares in the investments.

About two years ago, the network of four broker-dealers under the National Planning Holdings Inc. umbrella began to include REIT managers' share ownership as part of the criteria they use to evaluate these investments. The NPH due-diligence team said it had not rejected any sponsors yet because of a failure to meet its guidelines, but share ownership was watched closely.

“We do want management to participate in the offering and do prefer direct participation, that they buy [shares] themselves,” said Alfredo Gomez, assistant vice president for alternative investments and due diligence at NPH. “We prefer they own shares in the REIT directly, from the outset.”

The reps and advisers at the NPH broker-dealers are currently selling four nontraded REITs. Some are nearing the close of their period to raise money, so the firm is actively reviewing other offerings, Mr. Gomez said.

“A minority of REITs are doing this, but we're seeing it grow,” said Mr. Gomez. “I'm hearing that more managers from REITs are considering this. There seems to be more willingness to put money in from the get- go, but it depends on the! manager and it could range from a few hundred thousand to millions of dollars. Some [REIT executives] are putting in part of their net worth.”

NOT A CONCERN

Other broker-dealer executives, however, said that management's ownership of nontraded REIT shares was not a great concern. Such REITs typically operate with an external adviser and therefore have a markedly different compensation structure, resulting in nontraded REIT managers' owning far fewer shares at the outset of an offering than the insiders of a traded REIT.

Hot Undervalued Companies To Invest In Right Now

“I look at skin in the game when [there are] clear conflicts of interest at the sponsor level,” said John Rooney, a managing principal at Commonwealth Financial Network. “Say, if the sponsor has an institutional arm buying properties that the retail side is also chasing.”

“I don't put too much weight in it,” added Mr. Rooney, whose background includes doing due diligence on a variety of alternative investments. “Does Ned Johnson have money in Fidelity funds?”

Nontraded REITs began to draw the attention of regulators after the collapse of the commercial real estate market in 2007-08. Large REIT sponsors left advisers and clients bewildered as some slashed dividends and steeply reduced the valuations on their offerings.

Broker-dealer and REIT executives often point to the improvements in the product since then, including proposing rules to disclose brokers' commissions for selling the product clearly on client account statements and industry-proposed uniform guidelines for share valuations.

A RECORD YEAR

Coinciding with a recovery in the commercial real estate market, the result is that 2013 has been a record year for nontraded REIT sales. Industry executives believe that registered representatives and advisers will sell $18 billion in nontraded REITs this year, a! lmost dou! ble the amount the industry sold last year.

Kevin Hogan, chief executive of the Investment Program Association, an industry trade group, declined to comment about the different percentages of share ownership between listed REITs and nontraded REITs.

However, he wrote in an e-mail that nontraded REIT advisers “are moving towards taking their fees in shares instead of cash and this is a positive development. “

There are clear differences between non-traded REITs and listed REITs, Mr. Hogan added. “Comparing compensation for listed REITs and nonlisted REITs requires clarity about the differences in corporate structure,” he wrote. “Traded REITs are internally run or employee-run vehicles. Because they're employees of the REIT, those executives can be compensated in stock. On the other hand, nontraded REITs are externally advised by corporate entities. The nontraded REITs don't pay executives directly. They pay the advising company, which in turn pays its executives. This is a critical distinction if you're talking about executives having skin in the game.”

Other REIT executives pointed to the considerable costs of launching a nontraded REIT, perhaps $5 million to $10 million, as an indication of a commitment by REIT managers that doesn't translate directly to share ownership. As many as two dozen REITs have failed to launch successfully since 2009, resulting in sponsors eating millions of dollars in external costs. They also stressed that serious alignment of managers' and shareholders' interests takes place after a REIT's initial public offering or fund-raising period, when sponsors and managers take fees in the form of shares and not cash.

That said, the market appears to be paying attention to skin in the game. According to investment bank Robert A. Stanger & Co. Inc., the top nontraded REIT in sales over the first nine months of this year was Griffin-American Healthcare REIT II Inc., which raised $1.73 billion. That REIT's management has a strong commit! ment to o! wning shares. For example, its chief executive, Jeffrey Hanson, takes 100% of his after-tax compensation in shares.

“We don't grant shares to ourselves,” Mr. Hanson said. “We have bought all our stock in full.”

“If you do the right thing, and align the interests of investors and management through a meaningful investment of your own net worth, it truly changes human psychology,” he said. “You make different decisions and better decisions, and the result is better long-term performance.”

Take a Ride With Sizzling Polaris Stock

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3 Best ETFs to Own Until You Die

I'm really not much of an outdoorsman, so you won't catch me off-roading in an ATV — flying over sand dunes, wind blowing in my air, screaming like a banshee. I don't like dust.

Thus, I'm not the primary customer for Polaris Industries (PII).

However, plenty of people would find such an activity thrilling … and the equipment behind such an activity makes up a surprisingly robust sector of the economy.

As a result, Polaris stock comes with a lot for investors to like — including just-released record third-quarter earnings and strong outperformance from Polaris stock.

Polaris Stock Looks Solid

Getting more specific, Polaris designs, engineers and manufactures off-road vehicles, including all-terrain vehicles and side-by-side vehicles, for recreational and utility use. The company also makes snowmobiles and on-road vehicles, including motorcycles.

While Polaris vehicles have plenty of utility on construction sites, farms, ranches and even in military situations, the recreational side of the business can’t be overlooked. Polaris products are affordable enough that even middle-income people can own them, while folks doing well financially can purchase them in even greater quantity.

Of course, Polaris also provides replacement parts and accessories — a nice segment since those are high-margin products.

In the most recent quarter, which PII just reported, the breakdown was as follows: 64% of sales came from off-road vehicles, 13% came from snowmobiles, 7% from on-road vehicles and 16% from accessories.

Add it all up, and Polaris did an impressive $1.1 billion in sales. That’s the first time in PII history that quarterly sales topped the $1 billion mark, thanks in part to impressive 25% year-over-year growth.

Of course, business has been booming on the revenue side for some time, though. From fiscal 2010 to fiscal 2011, sales jumped 30% year-over-year, while another 22% gain was tacked on in fiscal 2012.

Strong sales have trickled down to the bottom line with no problem, too. Net income popped 57% from 2010 to 2011, with another 38% growth coming in 2011. And in the just-reported third-quarter, Polaris earnings were up 24% year-over-year, and margins widened 90 basis points.

The business is doing incredibly well at producing operational cash flow, too, totaling $382 million for the first nine months of fiscal 2013 — a 50% increase over the same period a year ago. To top it off, PII boasts free cash flow of $190 million, $388 million in cash only $107 million in total debt.

That’s pretty amazing, because it means Polaris has been able to grow aggressively without incurring debt. And while manufacturing does not always yield huge cash flow and margin expansion, Polaris seems to have it down pat.

Especially in an economy where people are leaving the workforce in record numbers, wages are stagnant and people are moving away from grocery stores and towards the dollar stores, it's very impressive to see this kind of growth. It’s clear that Polaris has its enthusiasts, and they are still able and willing to pay for their hobbies.

For the cherry on top, PII lifted full-year guidance for the third time this year, expecting 2013 Polaris earnings to total between $5.30 and $5.37 per share. That’s a gain of 20% to 22% over 2012 … and analysts see another 20% increase on tap for 2014, along with 18% annual growth long-term.

The one thing to note: Polaris stock trades at 25 times expected 2013 earnings thanks to its stellar 60% year-to-date gains. Normally, I might shy away from something fully valued like PII … but it's been nearly impossible to find a growth stock trading anywhere close to a PEG ratio of 1. Polaris stock has a PEG of 1.4, which isn’t unreasonable given the track record and on-tap growth.

As a result, I would consider Polaris stock strongly as an addition to your growth stock portfolio.

As of this writing, Lawrence Meyers did not hold a position in any of the aforementioned securities.

10 Best Mid Cap Stocks To Buy For 2015

NEW YORK (TheStreet) -- The history of the ETF industry includes some very off the wall fund concepts including one from the early days with the Guggenheim Spin-Off ETF (CSD) which began trading in late 2006 as the Claymore/Beacon Spin Off ETF. It was so off the wall I didn't even bother writing about it when it first came out.

The fund will celebrate its seventh anniversary in December and its long term performance has been stellar. It has only lagged behind the SPDR S&P 500 (SPY) for one calendar year in 2008 since its inception. Similarly it only lagged the SPDR S&P Mid Cap 400 ETF (MDY) in that same year. CSD is more of a mid-cap fund so the comparison to MDY is more appropriate.

10 Best Mid Cap Stocks To Buy For 2015: Qiagen N.V.(QGEN)

QIAGEN N.V., through its subsidiaries, provides sample and assay technologies worldwide. It offers approximately 500 core consumable products, such as sample and assay kits, and automated instrumentation systems that empower customers to transform raw biological samples into molecular information. The company?s consumable products are used for plasmid deoxyribonucleic acid (DNA) purification, and ribonucleic acid purification and stabilization; genomic and viral nucleic acid purification; nucleic acid transfection; polymerase chain reaction (PCR) amplification; reverse transcription; DNA cleanup after PCR and sequencing; and DNA cloning and protein purification. The company sells the digene HC2 HPV Test, a signal-amplified test for high-risk strains of the human papillomavirus. It also offers co-development services for companion diagnostics, technology licensing and patent sales services, and custom services, including whole genome amplification, DNA sequencing, and non- cGMP DNA production on a contract basis. The company?s instrumentation systems automate the use of sample and assay technologies into solutions for a range of laboratory needs enabling customers to perform nucleic acid sample preparation, assay setup, target detection, and other laboratory tasks. Its automated systems include QIAsymphony, a modular system; Rotor-Gene Q, a rotary real-time PCR cycler system; PyroMark, a high-resolution detection platform based upon the Pyrosequencing technology; QIAcube, a sample processing instrument; QIAxcel for nucleic acid separation in low- to high-throughput laboratories; and ESE-Quant Tube Scanners, an optical measurement device. The company serves customer classes, including molecular diagnostics laboratories; applied testing customers in fields, such as forensics, veterinary diagnostics, and food safety; pharmaceutical research and development groups, and academic researchers. QIAGEN N.V. was founded in 1986 and is headquartered in Venlo, the Netherlands.

10 Best Mid Cap Stocks To Buy For 2015: Entree Gold Inc (ETG.TO)

Entr茅e Gold Inc., an exploration stage resource company, engages in the exploration, development, and production of mineral properties primarily in Mongolia and the United States. The company holds interests in three key copper porphyry deposits, including the Hugo North Extension and the Heruga deposits in Mongolia; and the Ann Mason deposit, located near Yerington, Nevada. It is also exploring for porphyry-related copper systems in Nevada and New Mexico. The company was formerly known as Entr茅e Resources Inc. and changed its name to Entr茅e Gold Inc. on October 9, 2002. Entr茅e Gold Inc. was founded 1995 and is headquartered in Vancouver, Canada.

Top 10 Cheap Companies To Invest In Right Now: TransAct Technologies Incorporated(TACT)

TransAct Technologies Incorporated designs, develops, assembles, markets, and services transaction and specialty printers. It offers thermal, inkjet, and impact printers to print various transaction records, such as receipts, tickets, coupons, register journals, and other documents. The company also provides various printing supplies and consumables, including inkjet cartridges, ribbons, receipt papers, and other transaction supplies, as well as replacement parts; maintenance, repair, and testing services; and refurbished printers. TransAct Technologies Incorporated sells its printers under the Epic, Ithaca, and Printrex brand names for applications primarily in the banking, POS, casino and gaming, lottery, oil and gas, and medical and mobile markets. The company sells its products to original equipment manufacturers, value-added resellers, and selected distributors, as well as directly and online to end-users in the Americas, Europe, the Middle East, Africa, Asia, Austral ia, the Caribbean Islands, and the south Pacific. The company was founded in 1996 and is headquartered in Hamden, Connecticut.

10 Best Mid Cap Stocks To Buy For 2015: Avago Technologies Limited(AVGO)

Avago Technologies Limited engages in the design, development, and supply of analog semiconductor devices with a focus on III-V based products. Its product portfolio comprises RF amplifiers, RF filters, RF front-end modules, ambient light sensors, light emitting diodes, low noise amplifiers, mm-wave mixers, optical finger navigation products, diodes, fiber optic transceivers, serializer/deserializer ASICs, motion control encoders and subsystems, optocouplers, and optical mouse sensors. The company?s products are used in cellular phones, consumer appliances, data networking and telecommunications equipment, enterprise storage and servers, renewable energy and smart power grid, factory automation, displays, optical mice, printers, voice and data communications, keypad and display backlighting, backlighting control, base stations, storage area networking, in-car infotainment, lighting, motor controls, power supplies, and optical disk drives applications. It markets its produ cts through a network of distributors and its direct sales force worldwide. The company sells approximately 6,500 products to original equipment manufacturers of wireless communications, wired infrastructure, industrial and automotive electronics, and consumer and computing peripherals markets. Avago Technologies Limited was founded in 2005 and is based in Singapore.

Advisors' Opinion:

• [By Shauna O'Brien]

  Canaccord Genuity announced on Monday that it has raised its price target on Avago Technologies Ltd (AVGO).

  The firm has maintained a “Buy” rating on AVGO, and has increased the company’s price target from $45 to $53. This price target suggests a 20% upside from the stock’s current price of $42.55.

  Analyst Michael Walkly commented: ��eardown analysis of the iPhone 5S and 5C by iFixit suggests Avago has maintained very strong RF dollar content share.”

  “We believe these trends are consistent with our long-term thesis that Avago is well positioned to benefit from the rapidly growing demand for FBAR/BAW filters needed to support the growing mix of LTE smartphones.”

  “We also believe Avago’s proprietary technologies, strong IP portfolio, and diverse customer base in several growth markets position the company for strong long-term growth trends with industry leading margins,” added the analyst.

  Looking ahead, the analyst expects to see 2015 EPS of $3.93 per share. Revenue is expected to be $3.4 billion.

  Avago Technologies shares were up 93 cents, or 2.26%, during Monday morning trading. The stock is up 34% YTD.

10 Best Mid Cap Stocks To Buy For 2015: Cytokinetics Incorporated(CYTK)

Cytokinetics, Incorporated, a clinical-stage biopharmaceutical company, engages in the discovery and development of small molecule therapeutics that modulate muscle function for the potential treatment of serious diseases and medical conditions. It primarily offers omecamtiv mecarbil, a cardiac muscle myosin activator, which is in Phase I/IIa clinical trials for the treatment of heart failure; CK-2017357, which is a Phase IIa clinical trials for the treatment of amyotrophic lateral sclerosis; and CK-2066260, a fast skeletal muscle sarcomere activator for the treatment of diseases and conditions associated with muscle weakness or wasting. The company?s cancer treatment products under development stage comprise ispinesib, SB-743921, and GSK-923295. It has a strategic alliance with Amgen Inc. to discover, develop, and commercialize novel small molecule therapeutics that activate cardiac muscle contractility for applications in the treatment of heart failure. The company was founded in 1997 and is headquartered in South San Francisco, California.

Advisors' Opinion:

• [By Sean Williams]

  What: Shares of Cytokinetics (NASDAQ: CYTK  ) , a clinical-stage biopharmaceutical company focused on developing therapies for serious diseases, tanked as much as 38% after reporting mid-stage top-line data from acute heart failure drug, omecamtiv mecarbil.

• [By Rick Munarriz]

  Tuesday
  Cytokinetics (NASDAQ: CYTK  ) checks in on Tuesday. The biotech company's lead candidate is a cardiac muscle contractility program that Cytokinetics is trying to get approved for the potential treatment of heart failure. Investors see red ink here, but analysts do see the quarterly deficit narrowing this time around.

• [By Brian Pacampara]

  Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, clinical-stage biopharmaceutical company Cytokinetics (NASDAQ: CYTK  ) has received a distressing two-star ranking.

• [By Rich Duprey]

  Biopharmaceutical Cytokinetics (NASDAQ: CYTK  ) announced yesterday that it will be effecting a 1-for-6 reverse stock split to reduce the number of outstanding shares from�approximately 163.6 million to approximately 27.3 million shares.

10 Best Mid Cap Stocks To Buy For 2015: Viento Group Ltd(VIE.AX)

Viento Group Ltd. engages in the development, marketing, and management of property investment products in Australia. The company provides property investment syndicates and property investment funds. It also involves in the management of agribusiness investment products. It distributes investment products to both retail and institutional investors. The company was formerly known as WRF Securities Limited and changed its name to Viento Group Ltd. in November 2007. Viento Group is based in Melbourne, Australia.

10 Best Mid Cap Stocks To Buy For 2015: Penn West Petroleum Ltd(PWE)

Penn West Petroleum Ltd. engages in acquiring, exploring, developing, exploiting, and holding interests in petroleum and natural gas properties and related assets in North America. The company produces light and medium crude oil, natural gas liquids, heavy oil, and natural gas. It operates in two major regions, including the Southern District, which covers properties within Manitoba, Saskatchewan, and southern and east central Alberta with developed and undeveloped land base totaling approximately 3.3 million net acres; and the Northern District encompassing northeastern British Columbia, northern Alberta, parts of west central Alberta, and the Northwest Territories with developed and undeveloped land position of approximately 2.9 million net acres. The company was formerly known as Penn West Energy Trust and changed its name to Penn West Petroleum Ltd. in January 2011. Penn West Petroleum Ltd. was founded in 1979 and is headquartered in Calgary, Canada.

Advisors' Opinion:

• [By Roberto Pedone]

  Another under-$10 stock that's starting to trend within range of triggering a big breakout trade is Penn West Petroleum (PWE), which is engaged in the business of acquiring, exploring, developing, exploiting and holding interests in petroleum and natural gas properties and related assets. This stock has been under pressure by the bears during the last three months, with shares off by 24%.

  If you take a look at the chart for Penn West Petroleum, you'll notice that this stock has been trending sideways over the last two months, with shares moving between $7.89 on the downside and $8.84 on the upside. Shares of PWE are now starting to spike higher above its recent low of $8.14 a share and it's quickly moving within range of triggering a breakout trade above the upper-end of its recent sideways trading chart pattern.

  Market players should now look for long-biased trades in PWE if it manages to break out above some near-term overhead resistance levels at $8.84 a share to its 50-day moving average of $8.96 a share with high volume. Look for a sustained move or close above those levels with volume that hits near or above its three-month average action of 2.43 million shares. If that breakout hits soon, then PWE will set up to re-test or possibly take out its next major overhead resistance levels at its 200-day moving average of $10.07 to $11 a share. Any high-volume move above those levels will then give PWE a chance to tag $11.50 to $12 a share.

  Traders can look to buy PWE off any weakness to anticipate that breakout and simply use a stop that sits right below some key near-term support levels at $8.14 a share or at $7.89 a share. One can also buy PWE off strength once it starts to clear those breakout levels with volume and then simply use a stop that sits a comfortable percentage from your entry point.

10 Best Mid Cap Stocks To Buy For 2015: FMC Technologies Inc. (FTI)

FMC Technologies, Inc. provides technology solutions for the energy industry worldwide. Its Subsea Technologies segment designs and manufactures subsea systems used in the offshore production of crude oil and natural gas; and multiphase meters used in production and surface well testing, reservoir monitoring, remote operation, fiscal allocation, process monitoring and control, and artificial lift optimization, as well as provides installation and workover tools, installation assistance, and field support for commissioning, intervention, and maintenance of subsea systems. This segment also provides remotely operated vehicle systems and remote manipulator systems, as well as offers support services for subsea control systems and other high-technology equipment for subsea exploration and production. This segment markets its products primarily through its own technical sales organization. The company�s Surface Technologies segment offers surface wellheads for standard and cri tical service applications; fluid control products for use in well completion and stimulation activities; and fracturing flowback and wireline services for exploration companies in the oil and gas industry. Its Energy Infrastructure segment offers measurement systems for the custody transfer of crude oil, natural gas, and refined products; fluid loading and transfer systems to the oil and gas, petrochemical, and chemical industries; material handling solutions, such as bulk conveying systems to the power generation and mining industries; systems that separate production flows from wells into oil, gas, sand, and water; and direct drive systems for various energy-related applications. This segment also offers design, engineering, project management, maintenance, and aftermarket services for blending and transfer systems; and automation, control, and information technology for the oil and gas, and other industries. FMC Technologies, Inc. was founded in 2000 and is headquartered in Houston, Texas.

Advisors' Opinion:

• [By Monica Gerson]

  FMC Technologies (NYSE: FTI) is projected to post its Q3 earnings at $0.59 per share on revenue of $1.75 billion.

  Posted-In: Earnings scheduleEarnings News Pre-Market Outlook Markets

• [By Rich Smith]

  Following up on its March order with Cameron International�for $600 million worth of subsea "trees" -- equipment affixed to an oil wellhead to regulate the flow of gas and fluids injected into a well to help force oil out -- Brazilian oil major Petroleo Brasileiro (NYSE: PBR  ) (NYSE: PBR-A  ) announced Wednesday that it is ordering another 49 subsea trees, tooling, and associated subsea controls from FMC Technologies (NYSE: FTI  ) in a contract worth $500 million.

10 Best Mid Cap Stocks To Buy For 2015: Johnson Controls Inc.(JCI)

Johnson Controls, Inc. engages in building efficiency, automotive experience, and power solutions businesses worldwide. Its building efficiency business designs, produces, markets, and installs integrated heating, ventilating, and air conditioning systems, as well as building management systems, controls, and security and mechanical equipment. This business also provides technical services, energy management consulting, and operations of real estate portfolios for the non-residential buildings market. In addition, this business offers residential air conditioning and heating systems, and industrial refrigeration products. The company?s automotive experience business designs and manufactures interior products and systems for passenger cars and light trucks, including vans, pick-up trucks, and sport/crossover utility vehicles. It offers seating systems and components; cockpit systems comprising instrument panels and clusters, information displays, and body controllers; overh ead systems, such as headliners and electronic convenience features; floor consoles; and door systems. This business also produces automotive interior systems for original equipment manufacturers. Its power solutions business produces lead-acid automotive batteries serving automotive original equipment manufacturers and the general vehicle battery aftermarket. This business produces lead-acid batteries, as well as offers absorbent glass mat and lithium-ion battery technologies to power hybrid vehicles. The company was formerly known as Johnson Electric Service Company and changed its name to Johnson Controls, Inc. in 1974. Johnson Controls, Inc. was founded in 1885 and is headquartered in Milwaukee, Wisconsin.

Advisors' Opinion:

• [By Dan Caplinger]

  But the big problem for Magna has come from Europe. Rival Johnson Controls (NYSE: JCI  ) , which gets more of its revenue from Europe than from North America, has seen poor conditions in Europe weigh on its overall results. That's consistent with the big problems that major customers Ford (NYSE: F  ) and General Motors (NYSE: GM  ) have seen in their own European sales figures, with Ford having lost $1.75 billion last year in Europe and expecting that figure to balloon upward to $2 billion for 2013. Although GM managed to reduce its European losses in the first quarter to just $175 million, both it and Ford have a lot of work to do in order to get their operations on the continent back to profitability.

• [By Laura Brodbeck]

  Tuesday

  Earnings Expected From: Waste Management, Inc. (NYSE: WM), Johnson Controls, Inc. (NYSE: JCI), Electronic Arts Inc. (NASDAQ: EA), LinkedIn Corporation (NYSE: LNKD), Nokia Corporation (NYSE: NOK) Economic Releases Expected: �US consumer confidence, US PPI, Canadian PPI, British mortgage approvals and consumer credit, French consumer confidence

  Wednesday

• [By The Part-time Investor]

  Due to the sale of stocks that cut their dividend (and buyouts), and reinvestment of this money into new positions, In January of 2009 the following three new stocks were purchased.

  Dover Corp. (DOV)Johnson Controls (JCI)Medtronics (MDT)

  In January of 2010, again, due to stock sales (and buyouts) a further four new stocks were bought.

Top Trends: Income and ETFs

Money manager and income specialist Dave Fabian discusses four important current trends that income-oriented ETF investors need to consider; he also highlights the top funds to take advantage of these opportunities.

Steve Halpern: We're here with Dave Fabian. How are you doing Dave?

Dave Fabian: I'm doing very well, Steve, thanks so much for having me back.

Steve Halpern: Since the last time we spoke, you changed the name of your money management company from Fabian Capital to FMD Capital. Could you update us on the change?

Dave Fabian: Absolutely, we're actually really excited about it. The name change really came about because we're expanding our brand more on a national stage.

We're starting to do quite a bit more institutional research and the like, and we thought it would be better for a lot of our followers and clients to have a little bit of a different name change out there in the marketplace, and of course, along with that we also introduced a new portfolio that we're really excited about for our money management clients.

I focus exclusively on high-yield closed-in funds that's picking up a lot of interest as well. We're really excited about the changes, and at the end of 2013 and 2014 are going to be some really exciting times for both equity and income investors.

Steve Halpern: Congratulations.

Dave Fabian: Thank you so much.

Steve Halpern: You note that you don't subscribe to the theory that all bonds are bad, even in the face of rising interest rates. In fact, you suggest there are always opportunities out there for income investors. Could you expand on that?

Dave Fabian: Absolutely. Well, 2013, you know, has really seen probably the most volatility in the interest rate space since the mid-90s. Really, we've seen a huge spike in interest rates from a low in the 10-year of about 1.65% to over 3% in a period of about four or five months.

Since, though September, the Federal Reserve came out and said that they are not going to taper their asset purchase programs, and so, we saw a big fall in interest rates, which, of course, translates into a rise in bond prices. Really, now what we're seeing is some additional interest starting to come back into the bond market.

There were huge outflows in the early part of the month, of course, funds like PIMCO, and the like, garnered all of these headlines about how they are losing billions of dollars in assets, but really what we're starting to see is money come back into certain areas of the bond market, and there's some really excellent opportunities out there for income investors.

Of course, we don't subscribe to the theory that all bonds are bad, even in the face of some of these rising interest rates, there have been some areas of the bond market that have performed extremely well, so it's really about positioning your portfolio into the areas that are doing well, and letting go of some of the losers and the like.

Steve Halpern: In your latest research report, you outline four high-yield ETF trends that investors need to focus on today, so let's go through them. First, you look at short duration, high-yield bonds, and in particular, you recommend them because of low volatility. Can you tell us a little about that?

Dave Fabian: Absolutely. High-yield has been excellent space for income investors over the last several years. They've put up fantastic returns.

High-yield bonds have had very low default rate, they're a great income stream and of course, what we've been recommending over the last several years is for people to start transitioning their portfolios, specifically in high-yield, from longer duration to shorter duration.

The shorter average duration in an ETF or a mutual fund means that you're going to have less sensitivity to interest rates.

5 Best Casino Stocks To Watch Right Now

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Wal-Mart Stores, Inc. Begins Holiday Sales 1 Month Early (WMT)

Due to the holiday shopping season being one of the shortest in years, discount retail behemoth Wal-Mart Stores (WMT) will be beginning its holiday season sales a month earlier than normal; the sales will begin today, November 1.

Normally, holiday shopping begins on “Black Friday,” the Friday following Thanksgiving; however, this year, Thanksgiving does not occur until November 28, meaning Black Friday would not be until November 29, leaving just over three weeks for companies to benefit from the holiday shopping season. WMT is attempting to get a head start on other retailers that will be not having holiday sales until later. According to CNBC, analysts are anticipating that this holiday season will be one of the most heavily discounted shopping seasons in years, as consumers face spending pressures.

5 Best Industrial Conglomerate Stocks To Own Right Now

In addition to Walmart’s deep discounts starting today, the retailer is also offering free shipping on 99% of its online items that are more than $50. As “Cyber Monday” usually follows Black Friday, when people return to work and make their online purchases, Walmart’s shipping move can be seen as getting a head start on Cyber Monday, as well.

WMT stocks were down a fraction in pre-market trading. YTD, the company’s stock is up nearly 11%.

The Deal: Auto Resurgence Running Out of Gas

NEW YORK (The Deal) -- The North American auto industry has engineered an impressive recovery since the dark days of the Great Recession. But its rally-fueled expansion -- the fastest since a post-World War II boom -- could cause issues for investors as automakers chase increased sales.

Auto sales are headed toward an annualized rate of 17 million units, a remarkable turnaround from 10.4 million units sold in 2009. Automakers who cut aggressively during the downturn have responded by adding shifts and expanding plants, spending billions in the process.

Investors have noticed. Shares of Wall Street darling Ford Motor (F), for example, have almost doubled since the beginning of 2010.

There's an adage in the highly cyclical auto business that when manufacturers start adding third shifts, it is time to sell. Though it can be argued that streamlined automakers are better-positioned to handle a speed bump now than they were in years past, increased capacity tends to put pressure on pricing. It might be time to adjust expectations accordingly. Morgan Stanley analyst Adam Jonas says that while there are a lot of good things happening in the U.S. industry, "there are just too many car companies chasing too few consumers." Jonas stresses he is not trying to call a top to the rally, but says it is time to reconsider "too-optimistic 2014 forecasts" to allow for expected competitive price pressure and other potential issues. A 1% cut in U.S. pricing translates to a 10% to 15% cut in North American profits, the analyst says. Industry bulls will counter that much of the growth this time around is smart growth, and can more easily be pulled back should sales slow or prices come under pressure. A significant portion of the additional capacity is in Mexico, where costs are lower and labor is more flexible, and even in the U.S. and Canada manufacturers are taking advantage of reworked labor deals that allow for more liberal use of so-called Tier 2 lower-cost employees. Bulls also note that automakers have been careful to limit infrastructure investment, instead increasing output at existing facilities, and point to Europe as a potential offset to any slowdown in the U.S.

But adding shifts is still expensive. Jonas says Ford spent about $9 billion from 2010 to May 2012 on retooling, revamping and adding capacity in the U.S. and Canada despite not breaking ground on a new facility. And skeptics say that even if automakers succeed in pushing billions in European losses into the rear view mirror, there are no guarantees buyers in the mass transit-friendly region will return to showrooms en masse.

The auto industry has come a long way in a short amount of time, and no one is expecting a repeat of the 2009 crash and subsequent bailouts. But at some point the growth will inevitably stall. That day could be right around the corner.

-- Written by Lou Whiteman in New York

Top 10 Oil Companies To Buy Right Now

2013 is ending with yet another major rail accident involving oil. Authorities in eastern North Dakota are urging residents in the town of Casselton to evacuate ��following Monday's derailment of a mile-long BNSF train, carrying more than 100 cars of crude oil. BNSF is a subsidiary of Warren Buffett's Berkshire Hathaway (NYSE: BRK-A).

The ensuing fires, explosions and massive smoke plume have created a health hazard in the region, but no injuries have been reported

The Casselton derailment is at least the fourth major accident of its kind this year in North America. In July, 47 people were killed when a train carrying Bakken crude from North Dakota derailed and exploded in a small Quebec town near the Maine border. Similar derailments, with ensuing fires and explosions, also took place in Alabama and the Canadian province of Alberta.

Top 10 Oil Companies To Buy Right Now: Helmerich & Payne Inc (HP)

Helmerich & Payne, Inc., incorporated on February 29, 1944, is engaged in contract drilling of oil and gases wells for others and this business. The Company's contract drilling business is composed of three reportable business segments: U.S. Land, Offshore and International Land. During the fiscal year ended September 30, 2012 (fiscal 2012), the Company's U.S. Land operations drilled in Oklahoma, California, Texas, Wyoming, Colorado, Louisiana, Pennsylvania, Ohio, Utah, Arkansas, New Mexico, Montana, North Dakota and West Virginia. Offshore operations were conducted in the Gulf of Mexico, and offshore of California, Trinidad and Equatorial Guinea. During fiscal 2012, the Company's International Land segment operated in six international locations: Ecuador, Colombia, Argentina, Tunisia, Bahrain and United Arab Emirates. The Company is also engaged in the ownership, development and operation of commercial real estate and the research and development of rotary steerable technology. Each of the businesses operates independently of the others through wholly owned subsidiaries. The Company's real estate investments located exclusively within Tulsa, Oklahoma, include a shopping center containing approximately 441,000 leasable square feet, multi-tenant industrial warehouse properties containing approximately one million leasable square feet and approximately 210 acres of undeveloped real estate. The Company's subsidiary, TerraVici Drilling Solutions, Inc. (TerraVici), is developing rotary steerable technology. As of September 30, 2012, it had 176 rigs under fixed-term contracts. During fiscal 2012, the Company leased a 150,000 square foot industrial facility near Tulsa, Oklahoma for the purpose of overhauling/repairing rig equipment and associated component parts.

U.S. Land Drilling

As of September 30, 2012, the Company had 282 of its land rigs available for work in the United States. During fiscal 2012, the Company's U.S. Land operations contributed approximately 85% of the Compan! y's consolidated operating revenues. During fiscal 2012, rig utilization was approximately 89%. During fiscal 2012, the Company's fleet of FlexRigs had an average utilization of approximately 97%, while the Company's conventional and mobile rigs had an average utilization of approximately 11%. As of September 31, 2012, 231 out of an available 282 land rigs were working.

Off Shore Drilling

During fiscal 2012, the Company's Offshore operations contributed approximately 6% of the Company's consolidated operating revenues. During fiscal 2012, rig utilization was approximately 79%. During fiscal 2012, the Company had eight of its nine offshore platform rigs under contract and continued to work under management contracts for four customer-owned rigs. During fiscal 2012, revenues from drilling services performed for the Company's offshore drilling customer totaled approximately 56% of offshore revenues.

International Land Drilling

During fiscal 2012, the Company's International Land operations contributed approximately 9% of the Company's consolidated operating revenues. During fiscal 2012, rig utilization was 77%. As of September 30, 2012, the Company had nine rigs in Argentina. During fiscal 2012, the Company's utilization rate was approximately 52%. During fiscal 2012, revenues generated by Argentine drilling operations contributed approximately 2% of the Company's consolidated operating revenues. The Argentine drilling contracts are with international or national oil companies. As of September 30, 2012, the Company had seven rigs in Colombia. During fiscal 2012, the Company's utilization rate was approximately 79%. During fiscal 2012, revenues generated by Colombian drilling operations contributed approximately 3% of the Company's consolidated operating revenues. During fiscal 2012, revenues from drilling services performed for the Company's customer in Colombia totaled approximately 1% of consolidated operating revenues and approximately 16% of inter! national ! operating revenues. The Colombian drilling contracts are with international or national oil companies. As of September 30, 2012, the Company had five rigs in Ecuador. During fiscal 2012, the utilization rate in Ecuador was 97%. During fiscal 2012, revenues generated by Ecuadorian drilling operations contributed approximately 2% of consolidated operating revenues. As of September 30, 2012, the Company had two rigs in Tunisia, four rigs in Bahrain and two rigs in United Arab Emirates.

Advisors' Opinion:

• [By Seth Jayson]

  Helmerich & Payne (NYSE: HP  ) is expected to report Q3 earnings on July 26. 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 Helmerich & Payne's revenues will expand 3.1% and EPS will compress -2.2%.

• [By Richard Moroney, Editor, Dow Theory Forecasts]

  Helmerich & Payne (HP) has paid a dividend without interruption since 1959 and raised the distribution in 40 straight years.

  Following a pair of hikes in less than 12 months, Helmerich's quarterly dividend stands at $0.50 per share, compared to $0.07 per share a year ago.

• [By Ben Levisohn]

  As a result, the knives have come out. Cowen’s analysts downgraded six stocks–Baker Hughes (BHI), Cameron International (CAM), Nabors Industries (NBR), CGG (CGG), Superior Energy Services (SPN) and Helmerich & Payne (HP)–and cut their estimates on even more. Its analysts explain why:

Top 10 Oil Companies To Buy Right Now: Pengrowth Energy Corp (PGH)

Pengrowth Energy Corporation (Pengrowth) is engaged in the development, production and acquisition of, and the exploration for, oil and natural gas reserves in the provinces of Alberta, British Columbia, Saskatchewan, Ontario and Nova Scotia. The Company�� producing properties include Lindbergh, Swan Hills Area, Greater Olds/Garrington Area and Southeast Saskatchewan. In February 2012, the Company commenced the injection of steam at its Lindbergh pilot project. On May 31, 2012, the Company acquired NAL Energy Corporation. In November 2012, the Company acquired additional Lochend Cardium assets with production capability of approximately 650 barrels of oil equivalent, weighted 95% to light oil. In March 2013, the Company completed the divestiture of its non-core Weyburn asset. Advisors' Opinion:

• [By Eric Volkman]

  Canada's Pengrowth Energy (NYSE: PGH  ) continues to shower dividends from north of the border. The company has set the date for its next monthly common stock distribution of C$0.04 ($0.04) per share, which will be August 15 for shareholders of record as of July 22. That amount matches each of the firm's previous distributions stretching back to December of last year. Prior to that, Pengrowth Energy paid $0.07 per share.

• [By Alex Planes]

  Investors love stocks that consistently beat the Street without getting ahead of their fundamentals and risking a meltdown. The best stocks offer sustainable market-beating gains, with robust and improving financial metrics that support strong price growth. Does Pengrowth Energy (NYSE: PGH  ) fit the bill? Let's take a look at what its recent results tell us about its potential for future gains.

Best Tech Companies To Invest In Right Now: Hi Crush Partners LP (HCLP.N)

Hi Crush Partners LP, formerly Hi-Crush Partners LP, is a domestic producer of monocrystalline sand, a specialized mineral that is used as a proppant to enhance the recovery rates of hydrocarbons from oil and natural gas wells. The Company reserves consist of Northern White sand, a resource existing in Wisconsin and limited portions of the upper Midwest region of the United States. It owns, operates and develops sand reserves and related excavation and processing facilities and will seek to acquire or develop additional facilities. The Company's 561-acre facility with integrated rail infrastructure, located near Wyeville, Wisconsin, enables it to process and deliver approximately 1,600,000 tons of frac sand per year. In June 2013, Hi Crush Partners LP announced the completion of its acquisition of D&I Silica, LLC (D&I).

The Company�� frac sand production is sold to investment grade-rated pressure pumping service providers under long-term, contracts that require its customers to pay a specified price for a specified volume of frac sand each month. The Company owns and operates the Wyeville facility, which is located in Monroe County, Wisconsin and, as of December 31, 2011, contained 48.4 million tons of proven recoverable sand reserves of mesh sizes it has contracted to sell. From the Wyeville in-service date to March 31, 2012, it had processed and sold 555,250 tons of frac sand.

Top 10 Oil Companies To Buy Right Now: Archer Ltd (ARCHER.OL)

Archer Ltd, formerly Seawell Limited is a Bermuda-based global oilfield service company. The Company provides drilling services, such as platform drilling, land drilling, modular rings, directional drilling, drill bits, tubular services, drilling and completion fluids, cementing tools, plugs and packers, underbalanced services, rentals and engineering. It specialises also in well services, such as wireline intervention, specialist intervention, frac valves, wireline logging, integrity diagnostics, imaging, production monitoring, coiled tubing, completion services and fishing. As of January 3, 2012, the Company's organizational structure centered on four geographic and strategic areas: North America (NAM), North Sea (NRS), Latin America (LAM) and Emerging Markets & Technologies (EMT). As of December 31, 2010, it was active through a number of subsidiaries, namely Seawell, Allis-Chalmers Energy, Gray Wireline, Rig Inspection Services and TecWel, among others.

Top 10 Oil Companies To Buy Right Now: Bankers Petroleum Ltd (BNK.TO)

Bankers Petroleum Ltd. (Bankers) is engaged in the exploration for and oil in Albania. The Company generates all of the oil revenue from its operations in Albania, which is located northwest of Greece in South Eastern Europe. In Albania, Bankers operates and has the rights to develop the Patos-Marinza and Kucova oilfields pursuant to License Agreements with the Albanian National Agency for Natural Resources (AKBN) and Petroleum Agreements with Albpetrol Sh.A (Albpetrol), the state-owned oil and gas corporation. The Patos-Marinza oilfield is an onshore oilfield in continental Europe, holding approximately 5.1 billion barrels of original-oil-in-place (OOIP). The Company also has rights to exploration Block F (adjacent to the Patos-Marinza oilfield), an 185,000 acre oil and gas prone exploration field. The Company�� subsidiaries include Bankers Petroleum Albania Ltd. (BPAL), Bankers Petroleum International Limited (BPIL) and Sherwood International Petroleum Ltd (Sherwood).

Top 10 Oil Companies To Buy Right Now: Magnum Hunter Resources Corp (MHR)

Magnum Hunter Resources Corporation (Magnum Hunter), incorporated in June 1997, is an independent oil and gas company engaged in the exploration for and the exploitation, acquisition, development and production of crude oil, natural gas and natural gas liquids, primarily in the states of West Virginia, Ohio, Texas, Kentucky and North Dakota and in Saskatchewan, Canada. The Company is also engaged in midstream operations, including the gathering of natural gas through its ownership and operation of a gas gathering system in West Virginia and Ohio, named as its Eureka Hunter Pipeline System. The Company�� portfolio includes Marcellus/Utica Shales in West Virginia and Ohio, the Eagle Ford Shale in south Texas, and the Williston Basin/Bakken Shale in North Dakota and Saskatchewan, Canada. As of December 31, 2011, its proved reserves were 44.9 million barrels of oil equivalent and were approximately 48% oil. In August 2012, the Company closed on the acquisition of 1,885 net mineral acres located in Atascosa County, Texas. With this acquisition, the Company has approximately 7,278 gross acres and 5,212 net acres located in Atascosa County, Texas.

On May 3, 2011, it acquired NuLoch Resources Inc. In April 2011, Triad Hunter, its wholly owned subsidiary, acquired certain Marcellus Shale oil and gas properties located in Wetzel County, West Virginia. On April 13, 2011, it acquired NGAS Resources, Inc. In February 2012, Triad Hunter acquired leasehold mineral interests located primarily in Noble County, Ohio.

Eagle Ford Shale Properties

Eagle Ford Shale is located in Gonzales, Lavaca, Atascosa and Fayette Counties, Texas. The Eagle Ford Shale properties are held primarily by its wholly owned subsidiary, Eagle Ford Hunter, Inc. As of February 27, 2012, the Company�� Eagle Ford Shale properties included approximately 54,000 gross (24,000 net) acres primarily targeting the Eagle Ford Shale oil window, principally in Gonzales and Lavaca Counties, Texas. As of December 31! , 2011, proved reserves attributable to the Eagle Ford Shale properties were 5.4 million barrels of oil equivalent, of which 94% were oil and 24% were classified as proved developed producing, and 5.4 million barrels of oil equivalent. As of February 27, 2012, its Eagle Ford Shale properties included 18 gross (10 net) productive wells, of which it operated 14.

Williston Basin Properties

The Williston Basin is spread across North Dakota, Montana and parts of southern Canada. The basin produces oil and natural gas from a range of producing horizons, including the Madison, Bakken, Three Forks/Sanish and Red River formations. As of February 27, 2012, the Company�� Williston Basin properties included approximately 413,003 gross (122,561 net) acres. As of December 31, 2011, proved reserves attributable to the Williston Basin properties were 8.9 million barrels of oil equivalent, of which 94% were oil and 42% were classified as proved developed producing, and 8.8 million barrels of oil equivalent. As of February 27, 2012, the Williston Basin properties included approximately 288 gross (98.9 net) productive wells.

The Williston Hunter United States property acreage is located in Divide and Burke Counties, North Dakota, with its primary production from the Bakken Shale and Three Forks/Sanish formations. As of February 27, 2012, its Williston Hunter United States properties included approximately 36,355 net acres in the Williston Basin in North Dakota. As of February 27, 2012, the Williston Hunter United States properties included approximately 105 gross (9.5 net) productive wells. The Company�� Williston Hunter Canada property is located primarily in Enchant, near Vauxhall, Alberta, Canada, at Balsam near Grande Prairie, Alberta, Canada and at Tableland, near Estevan, Saskatchewan, Canada. As of February 27 2012, the Williston Hunter Canada properties included approximately 107,270 gross acres (79,693 net acres). At December 31, 2011, the Williston Hunter Canada prope! rties inc! luded approximately 65 gross productive wells. As of December 31, 2011, Williston Hunter Canada had 41,797 gross (32,944 net) acres of land that is prospective for Bakken and Three Forks/Sanish oil in the Tableland field. The Enchant property consists of 10,720 acres. As of December 31, 2011, 48 wells (44.1 net) were producing on this acreage. As of December 31, 2011, the Company owned approximately 43% average interest in 15 fields located in the Williston Basin in North Dakota consisting of 151 wells, and approximately 15,000 gross (6,450 net) acres.

Appalachian Basin Properties

The properties acquired in the NGAS acquisition are held by its wholly owned subsidiary, Magnum Hunter Production, Inc. As of February 27, 2012, its Appalachian Basin properties included a total of approximately 484,412 gross (412,323 net) acres, located primarily in the Marcellus Shale, Utica Shale and southern Appalachian Basin. At December 31, 2011, proved reserves attributable to its Appalachian Basin properties were 29.9 million barrels of oil equivalent, of which 27% were oil and 59% were classified as proved developed producing, and 30.2 million barrels of oil equivalent. As of February 27, 2012, the Appalachian Basin properties included approximately 3,112 gross (2,257 net) productive wells, of which we operated approximately 88%.

As of February 27, 2012, it had approximately 58,426 net acres in the Marcellus Shale area of West Virginia and Ohio. The Company�� Marcellus Shale property is located principally in Tyler, Pleasants, Doddridge, Wetzel and Lewis Counties, West Virginia and in Washington, Monroe and Noble Counties, Ohio. As of February 27, 2012, the Company operated 33 vertical Marcellus Shale wells and 16 horizontal Marcellus Shale wells. As of February 27, 2012, approximately 63% of its leases in the Marcellus Shale area were held by production.

Other Properties

The Company�� East Chalkley field is located in Cameron Parish, Louisiana.! The fiel! d consists of approximately 714 gross acres (443 net acres). This developmental project is an exploitation of bypassed oil reserves remaining in a natural gas field located at depths between 9,300 and 9,400 feet. As of February 27, 2012, the Company operated the East Chalkley field and owned an approximately 62% working interest and an approximately 42.7% net revenue interest in the field. Other properties of the Company are located in Nacogdoches, Colorado, Lavaca, Bee, Fayette and Wharton Counties, Texas and Desoto Parish, Louisiana. As of February 27, 2012, these properties consisted of an aggregate of approximately 7,050 gross (1,188 net) acres.

Advisors' Opinion:

• [By Matt DiLallo]

  Magnum Hunter Resources (NYSE: MHR  )
  Topping the list with a five-year compound annual growth rate of 220% is Magnum Hunter Resources. First, I will point out that the company started at a very low base as its market cap was just $10 million as its share price bottomed out at $0.37 in 2009, when its current management team assumed leadership. However, that team has led the company to phenomenal growth in cash from operations since taking over.

• [By Rick Munarriz]

  5. Hunting for a new auditor
  Shares of Magnum Hunter Resources (NYSE: MHR  ) fell sharply after its auditor disclosed material weakness in internal controls.

Top 10 Oil Companies To Buy Right Now: Halcon Resources Corp (HK)

Halcon Resources Corporation (Halcon Resources), incorporated on February 5, 2004, is an independent energy company focused on the acquisition, production, exploration and development of onshore liquids-rich oil and natural gas assets in the United States. The Company has oil and natural gas reserves located primarily in Texas, North Dakota, Louisiana, Oklahoma and Montana. On August 1, 2012, the Company acquired GeoResources by merger. On December 6, 2012, the Company completed the acquisition of entities owning approximately 81,000 net acres prospective for the Bakken / Three Forks formations primarily located in Williams, Mountrail, McKenzie and Dunn Counties, North Dakota (the Williston Basin Assets), from Petro-Hunt, L.L.C. and Pillar Energy, LLC (the Petro-Hunt parties). As of December 31, 2012, the Company has working interests in approximately 128,000 net acres prospective for the Bakken / Three Forks formations in North Dakota and Montana.

The Company�� Woodbine / Eagle Ford acreage is prospective for the Woodbine, Eagle Ford and other formations, with targeted depths ranging anywhere from 7,000 feet to 10,400 feet. As of December 31, 2012, The Company has approximately 198,000 net acres leased or under contract primarily in Leon, Madison, Grimes, Brazos, and Polk Counties, Texas. The Company is the operator and has a 100% working interest in more than 12,000 net acres in Wichita and Wilbarger Counties, Texas that it is actively water flooding in shallow Cisco aged Pennsylvania sandstone and limestone reservoirs. As of December 31, 2012, the Company produced 484 million barrels of oil equivalent from approximately 700 active producing wells and approximately 230 active water injection wells.

The Company�� position in the La Copita Field covers 3,720 gross acres and 2,829 net acres in Starr County, Texas. As of December 31, 2012, the Company�� average net daily production was 623 barrels of oil equivalent per day. The Company operates 100% of this production a! nd its working interest ranges from 75% to 100%. The Company has various other oil and natural gas properties with varying working interests located across the United States, including the Austin Chalk Trend and Eagle Ford Shale in Texas, the Fitts-Allen Fields in Central Oklahoma, and various other areas across South Louisiana, Montana, North Dakota, New Mexico, and West Virginia.

Advisors' Opinion:

• [By Selena Maranjian]

  Finally, Graham Capital's biggest closed positions included Hess�and calls on the SPDR S&P 500 ETF. Other closed positions of interest include Halcon Resources (NYSE: HK  ) and Pengrowth Energy (NYSE: PGH  ) . Oil and gas company Halcon, operating in the promising Bakken region, as well as Texas' productive Eagle Ford shale region, among others, posted 2012 net daily production 128% higher than year-earlier levels, and proven reserves up 417%. The stock was punished after a disappointing earnings result last month, despite surging revenue. Free cash flow has moved into the red, though.

• [By Roberto Pedone]

  One energy player that insiders are active in here is Halcon Resources (HK), which is engaged in the acquisition, development, exploitation, exploration and production of oil and natural gas properties. Insiders are buying this stock into notable weakness, since shares are off by 22% so far in 2013.

  Halcon Resources has a market cap of $1.99 billion and an enterprise value of $4.71 billion. This stock trades at a premium valuation, with a trailing price-to-earnings of 112.50 and a forward price-to-earnings of 12.56. Its estimated growth rate for this year is 900%, and for next year it's pegged at 79.2%. This is not a cash-rich company, since the total cash position on its balance sheet is $3.06 million and its total debt is $2.71 billion.

  A director just bought 200,000 shares, or about $1.02 million worth of stock, at $5.10 per share. A beneficial owner also just bought 5.2 million shares, or about $26.44 million worth of stock, at $5.10 per share.

  From a technical perspective, HK is currently trending below both its 50-day and 200-day moving averages, which is bearish. This stock has been downtrending badly for the last six months, with shares moving lower from its high of $8.12 to its recent low of $4.92 a share. During that downtrend, shares of HK have been making mostly lower highs and lower lows, which is bearish technical price action. That said, this stock has started to find some buying interest off some previous support areas at $4.92 to $5.10 a share.

  If you're bullish on HK, then look for long-biased trades as long as this stock is trending above some key near-term support levels at $5.10 to $4.92 and then once it breaks out back above its 50-day at $5.67 a share with high volume. Look for a sustained move or close above that level with volume that hits near or above its three-month average volume of 5.14 million shares. If that breakout triggers soon, then HK will set up to re-test or possibly take out its next major ov

• [By Aimee Duffy]

  Finally, we have Halc璐� Resources (NYSE: HK  ) , a small company that is worth mentioning here because it is targeting the East Texas section of the Eagle Ford. The company has seven producing wells and 50,000 net acres in the Eaglebine section of the play; it aims to eventually bring that number up to 150,000 acres and drill an additional 15-20 wells this year. Halc璐� estimates that its reserves may be in the neighborhood of 350,000-400,000 barrels of oil equivalent, though it is worth mentioning that average production so far has turned out to be 94% oil.

Top 10 Oil Companies To Buy Right Now: Marathon Petroleum Corp (MPC)

Marathon Petroleum Corporation (MPC), incorporated on November 9, 2009, is a petroleum product refiners, transporters and marketers in the United States. The Company operates in three segments: Refining & Marketing, Speedway and Pipeline Transportation. Marathon Petroleum�� refining, marketing and transportation operations are concentrated in the Midwest, Gulf Coast and Southeast regions of the United States. MPC has two retail brands: Speedway and Marathon. Effective as of June 30, 2011, MPC was separated from Marathon Oil Corporation (Marathon Oil) and became an independent company in a spin-off transaction.

Refining & Marketing

The Company owned and operated six refineries in the Gulf Coast and Midwest regions of the United States with an aggregate crude oil refining capacity of approximately 1.2 million barrels per calendar day as of December 31, 2011. During 2011, its refineries processed 1,177 million barrels per day of crude oil and 181 mbpd of other charge and blend stocks. Its refineries include crude oil atmospheric and vacuum distillation, fluid catalytic cracking, catalytic reforming, desulfurization and sulfur recovery units. The refineries process a range of crude oils and produce numerous refined products, ranging from transportation fuels, such as reformulated gasolines, blend-grade gasolines intended for blending with fuel ethanol and ultra-low-sulfur diesel fuel, to heavy fuel oil and asphalt. Additionally, MPC manufacture aromatics, propane, propylene, cumene and sulfur.

The Company�� Garyville, Louisiana refinery is located along the Mississippi River in southeastern Louisiana between New Orleans and Baton Rouge. The Garyville refinery is configured to process heavy sour crude oil into products, such as gasoline, distillates, asphalt, polymer grade propylene, propane, isobutane, sulfur and fuel-grade coke. The Catlettsburg, Kentucky refinery is located in northeastern Kentucky on the western bank of the Big Sandy River, near the confluence! with the Ohio River. The Catlettsburg refinery processes sweet and sour crude oils into products such as gasoline, distillates, asphalt, cumene, petrochemicals, propane and propylene. The Robinson, Illinois refinery is located in southeastern Illinois. The Robinson refinery processes sweet and sour crude oils into products, such as multiple grades of gasoline, distillates, anode-grade coke, propane, butane and propylene.

MPC�� Detroit, Michigan refinery is located near Interstate 75 in southwest Detroit. It is the petroleum refinery operating in Michigan. The Detroit refinery processes light sweet and heavy sour crude oils, including Canadian crude oils, into products, such as gasoline, distillates, asphalt, slurry, propane, and propylene. Its Canton, Ohio refinery is located approximately 60 miles southeast of Cleveland, Ohio. The Canton refinery processes sweet and sour crude oils into products such as gasoline, distillates, asphalt, propane, slurry and roofing flux. Its Texas City, Texas refinery is located on the Texas Gulf Coast approximately 30 miles south of Houston, Texas. The refinery processes sweet crude oil into products such as gasoline, chemical grade propylene, propane, slurry and aromatics.

As of December 31, 2011, the Company owned and operated 62 light product and 21 asphalt terminals. In addition, it distributes through approximately 52 third-party light product and 12 third-party asphalt terminals in its market area. During 2011, marine transportation operations included 15 towboats, as well as 167 owned and 14 leased barges that transport refined products on the Ohio, Mississippi and Illinois rivers and their tributaries, as well as the Intercoastal Waterway. As of December 31, 2011, the Company leased or owned approximately 1,950 railcars of various sizes and capacities for movement and storage of refined products. In addition, it own 124 transport trucks for the movement of refined products.

The Company produces propane at all six of its! refineri! es. Propane is primarily used for home heating and cooking, as a feedstock within the petrochemical industry, for grain drying and as a fuel for trucks and other vehicles. The Company is also a producer and marketer of feedstocks and specialty products. Product availability varies by refinery and includes propylene, cumene, dilute naphthalene oil, molten sulfur, toluene, benzene and xylene. Propane is primarily used for home heating and cooking, as a feedstock within the petrochemical industry, for grain drying and as a fuel for trucks and other vehicles.

Speedway

The Company sells transportation fuels and convenience products in the retail market in the Midwest, primarily through Speedway convenience stores. The Speedway segment sells gasoline and merchandise through convenience stores that the Companu owns and operates, primarily under the Speedway brand. Speedway-branded convenience stores offer a range of merchandise, such as prepared foods, beverages and non-food items, including a number of private-label items. As of December 31, 2011, Speedway had 1,371 convenience stores in seven states.

Pipeline Transportation

The Company transports crude oil and other feedstocks to our refineries and other locations, delivers refined products to wholesale and retail market areas and includes, among other transportation-related assets, a majority interest in LOOP LLC, which is the owner and operator of the United States deepwater oil port. It owns common carrier pipeline systems through Marathon Pipe Line LLC (MPL) and Ohio River Pipe Line LLC (ORPL), both of which are wholly owned subsidiaries. These pipeline systems transport crude oil and refined products, primarily in the Midwest and Gulf Coast regions, to its refineries, its terminals and other pipeline systems. The Company�� MPL and ORPL wholly owned carrier systems consist of 1,707 miles of crude oil lines and 1,825 miles of refined product lines comprising 31 systems located in 11 states, as of Decem! ber 31, 2! 011. In addition, MPL leases and operates 217 miles of common carrier refined product pipelines.

The common carrier refined product pipelines include the owned and operated Cardinal Products Pipeline and the Wabash Pipeline. The Cardinal Products Pipeline delivers refined products from Kenova, West Virginia, to Columbus, Ohio. The Wabash Pipeline system delivers refined products from Robinson, Illinois, to various terminals in the area of Chicago, Illinois. Other refined product pipelines owned and operated by MPL extend from: Robinson, Illinois to Louisville, Kentucky; Robinson, Illinois to Lima, Ohio; Wood River, Illinois to Indianapolis, Indiana; Garyville, Louisiana to Zachary, Louisiana, and Texas City, Texas to Pasadena, Texas.

As of December 31, 2011, the Company had partial ownership interests in the pipeline companies that have approximately 110 miles of crude oil pipelines and 3,600 miles of refined products pipelines, including about 970 miles operated by MPL, which include Centennial Pipeline LLC (Centennial), Explorer Pipeline Company (Explorer), LOCAP LLC (LOCAP), LOOP LLC (LOOP), Muskegon Pipeline LLC (Muskegon) and Wolverine Pipe Line Company (Wolverine).

The Company holds a 50% interest in Centennial, which owns a refined products pipeline system connecting the Gulf Coast region with the Midwest market. The Company holds a 17% interest in Explorer, a refined products pipeline system extending from the Gulf Coast to the Midwest. It holds a 51% interest in LOOP, the owner and operator of the Louisiana Offshore Oil Port, which is a deepwater oil port capable of receiving crude oil from large crude carriers, located 18 miles off the coast of Louisiana, and a crude oil pipeline connecting the port facility to storage caverns and tanks at Clovelly, Louisiana. The Company holds a 60% interest in Muskegon, which owns a refined products pipeline extending from Griffith, Indiana to North Muskegon, Michigan. It hold a 6% interest in Wolverine, a refined prod! ucts pipe! line system extending from Chicago, Illinois to Toledo, Ohio.

Advisors' Opinion:

• [By Ben Levisohn]

  Shares of Holly (HFC) have gained 1.9% to $43.29 at 10:43 a.m., shares of Marathon (MPC) have risen 1.8% to $68.41, and shares of Valero Energy (VLO) have ticked up 0.6% to $36.77. Tesoro (TSO) has dropped 0.8% to $45.21.

Top 10 Oil Companies To Buy Right Now: Flotek Industries Inc (FTK)

Flotek Industries, Inc. (Flotek), incorporated on May 17, 1985, is a diversified global supplier of drilling and production related products and services. Its core focus is oilfield specialty chemicals and logistics, down-hole drilling tools and down-hole production tools used in the energy and mining industries. Flotek operates in three segments: Chemicals and Logistics, Drilling Products and Artificial Lift. The Company operates using third party agents in Canada, Mexico, Central America, South America, the Middle East, and Asia. In May 2013, Flotek Industries Inc through its wholly owned subsidiary acquired the entire share capital of Florida Chemical Co Inc.

Chemicals and Logistics

The chemical business provides oil and natural gas field specialty chemicals for use in drilling, cementing, stimulation and production activities. The Company�� specialty chemicals are manufactured to withstand a range of down-hole pressures, temperatures and other well-specific conditions. Flotek operates two laboratories, a technical services laboratory and a research and development laboratory, which focus on design, development and testing of new chemical formulations and enhancement of existing products, often in cooperation with the customers. Its micro-emulsions are stable mixtures of oil, water and surface active agents, forming complex nano-fluids, in which the molecules are organized into nanostructures. The micro-emulsions are composed of renewable plant derived cleaning ingredients and oils and are biodegradable. Flotek�� logistics business designs, project manages and operates automated bulk material handling and loading facilities. These bulk facilities handle oilfield products, including sand and other materials for well-fracturing operations, dry cement and additives for oil and gas well cementing, and supply materials used in oilfield operations.

Drilling Products

Flotek is a provider of down-hole drilling tools used in the oilfield, min! ing, water-well and industrial drilling activities. It manufactures, sells, rents and inspects specialized equipment for use in drilling, completion, and production and workover activities. The rental tools include stabilizers, drill collars, reamers, wipers, jars, shock subs, wireless survey, and measurement while drilling (MWD) tools and mud-motors. Equipment sold primarily includes mining equipment, centralizers and drill bits. Flotek focuses its product marketing primarily in the Southeast, Northeast, Mid-Continent and Rocky Mountain regions of the United States, with international sales conducted through third party agents.

Artificial Lift

Flotek provides pumping system components, electric submersible pumps (ESPs), gas separators, production valves and services. The products address the needs of coal bed methane and traditional oil and gas production to move gas, oil and other fluids from the producing horizon to the surface. The Artificial Lift products employ technologies to improved performance. The Petrovalve product optimizes pumping efficiency in horizontal completions, heavy oil and wells with high liquid to gas ratios. Artificial Lift products are manufactured in China, assembled domestically and distributed globally.

Advisors' Opinion:

• [By David Smith]

  Flotek Industries (NYSE: FTK  )
  The smallest member of the trio, with a market cap of about $815 million, Flotek operates on the services side of the energy sector. As I've previously pointed out to Fools, it also constitutes a rare instance wherein the analysts who monitor the company all accord it strong buy ratings. But with Flotek's share price having risen by more than 40% year to date, it is difficult to contest that unanimous confidence.

• [By David Smith]

  Flotek Industries (NYSE: FTK  )
  I've mentioned Flotek Industries to Fools in the past. The relatively small ($940 million capitalization and growing) company provides a range of products and assistance for oil and gas operations, from well construction to production. It's also the only services company -- and one of but a handful of companies in any sector -- that's been accorded a perfect consensus of one (strong buy) by the analysts.

Top 10 Oil Companies To Buy Right Now: Transocean Inc.(RIG)

Transocean Ltd. provides offshore contract drilling services for oil and gas wells worldwide. It offers deepwater and harsh environment drilling, oil and gas drilling management, and drilling engineering and drilling project management services. The company also offers well and logistics services. In addition, it engages in oil and gas exploration, development, and production activities primarily in the United States offshore Louisiana and Texas, and in the United Kingdom sector of the North Sea. As of February 10, 2011, the company owned, had partial ownership interests in, and operated 138 mobile offshore drilling units, including 47 high-specification floaters, 25 midwater floaters, 9 high-specification jackups, 54 standard jackups, and 3 other rigs, as well as 1 ultra-deepwater floater and 3 high-specification jackups under construction. Transocean Ltd. was founded in 1953 and is based in Zug, Switzerland.

Advisors' Opinion:

• [By Dividend]

  Transocean (RIG) has a market capitalization of $16.64 billion. The company employs 18,400 people, generates revenue of $9.196 billion and has a net income of $816.00 million. Transocean�� earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $3.592 billion. The EBITDA margin is 39.06 percent (the operating margin is 17.21 percent and the net profit margin 8.87 percent).

• [By Taylor Muckerman and Joel South]

  Shareholders of Transocean (NYSE: RIG  ) should be busy this weekend reading up on how the two proposed dividends could affect the company financially and about the backgrounds of the nominees to the Board of Directors. Each of these decisions will likely weigh heavily on the future outlook of Transocean which resides in a competitive and growing industry.��

• [By Tom Stoukas]

  Transocean Ltd (RIG), the world�� largest supplier of offshore oil rigs, posted the biggest gain on the SMI, rising 1.4 percent to 41.26 francs.

Top 10 Oil Companies To Buy Right Now: Archer Ltd (ARCHER)

Archer Ltd, formerly Seawell Limited is a Bermuda-based global oilfield service company. The Company provides drilling services, such as platform drilling, land drilling, modular rings, directional drilling, drill bits, tubular services, drilling and completion fluids, cementing tools, plugs and packers, underbalanced services, rentals and engineering. It specialises also in well services, such as wireline intervention, specialist intervention, frac valves, wireline logging, integrity diagnostics, imaging, production monitoring, coiled tubing, completion services and fishing. As of January 3, 2012, the Company's organizational structure centered on four geographic and strategic areas: North America (NAM), North Sea (NRS), Latin America (LAM) and Emerging Markets & Technologies (EMT). As of December 31, 2010, it was active through a number of subsidiaries, namely Seawell, Allis-Chalmers Energy, Gray Wireline, Rig Inspection Services and TecWel, among others.

LyondellBasell Industries

Oil and gas companies' overzealous production of natural gas, and natural gas liquids, has restored the fortunes of domestic chemical producers, an energy-intensive industry that relies on these commodities to generate power, and as feedstock, explains Peter Staas, editor of Capitalist Times.

Within this space, olefin producers have benefited the most from trends in the energy patch. The two most prominent olefins, ethylene and propylene, serve as the basic building blocks for three-quarters of all chemicals, plastics, and synthetic fibers.

Not only do shares of well-positioned US olefin producers stand to benefit from depressed ethane prices and near-term investments in capacity expansions, but, more importantly, the group also enjoys a substantial cost advantage over peers with production facilities in Asia and Europe.

Holland-based petrochemical outfit LyondellBasell Industries (LYB) remains the best bet for income-seeking investors to profit from persistently weak ethane prices in North America.

About 80% of the company's annual earnings, before interest, taxes, interest, depreciation, and amortization (EBITDA), come from business lines that benefit from favorable NGL and natural gas prices in the US.

Ethane prices plummeted by 70% in 2012. A 28% rally in 2013 reflected a seasonal recovery in natural gas prices. But regardless of this recent uptrend, the US ethane market should remain oversupplied for, at least, the next three years.

We also expect LyondellBasell Industries' intermediates and derivatives business to benefit from strong profit margins on its oxygenated fuel products, a business where profit margins have grown significantly, because of elevated oil prices and the depressed price of natural gas in North America.

Europe's strengthening economy will also provide a tailwind to these operations, while the firm's refinery on the Gulf Coast stands to benefit from the increasing availability of discounted heavy crude oil from Canada's oil sands—an upside catalyst that will likely occur toward the end of 2014.

The temporary updraft in ethane prices in the fourth quarter, coupled with an explosion at the company's Gulf Coast refinery, could give investors a limited opportunity to buy this name on a pullback. Don't pass it up.

With an improving growth outlook and a solid track record of dividend increases and share repurchases, LyondellBasell Industries rates a buy up to $82 per share.

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How To Properly Research For The Best Mortgage Rate

Are you ready to refinance your home? Or are you looking for the best mortgage rate to close on your new house?

You've probably been told to shop around for the best rate, but what exactly does that entail? With some preparation and research, you can save big if you get the right mortgage rate. For example, on a 30-year mortgage for a $300,000 house, a homeowner would pay approximately $1,520 each month at a 4.5 percent rate.

If the homeowner was locked in at a slightly higher rate of 5.10 percent, it would increase the monthly mortgage payments to $1,633, which would make a difference of $40,680 in 30 years. (Figures were calculated on a 20 percent down payment.) That's a lot of money!

The first thing you should do is retrieve your credit scores. Sharing your credit scores with lenders on your own is a better option, rather than having each lender one pull it multiple times, which can ultimately lower your score.

When shopping for a lender, find out if they're great on service. Get recommendations from family and friends. After you've narrowed it down to two or three lenders, compare rates.

One of first things to consider when looking for the best rate is figuring out your limit. Decide on the maximum rate by creating a budget in order to figure out how much you can afford.

The lender should be able to compare loan terms with conventional methods of financing so you can make an informed decision on which loan terms best suits you. You want to jump on the best rate, which mostly involves good timing. The rate lock is a contract with the lender that guarantees you a prevailing interest rate.

You must also agree to buy the loan at that rate within a specific time period, usually in 60 days. If the rate rises, you're covered. Use a mortgage calculator to compute the monthly payment at different interest rates. If you find a rate that is around or below your limit, lock into that rate at that time or bow out of the game.

When rates do dip below your maximum limit, be as prepared as possible -- clear away any obstacles if they arise so you don't miss out. Some lenders may offer you the chance to get a lower rate if you've already been locked in. This is called a "float down," which means the prevailing rates drop, even after you have secured a lower rate. Be mindful that these specific contracts vary.

Don't just check out one lender when shopping around for a good mortgage rate. Since interest rates go up and down constantly, different lenders may offer different products. Some may offer the best mortgage rates for homebuyers, but not for those who want to refinance.

It's best to try a mix of institutions from a direct lender, credit union or a community bank. After deciding on which lender, inquire about fees associated with the loan. A mortgage at a lower rate may end up costing you more because of the fees that add up in the end. Some lenders combine all of their fees into what's called a loan preparation fee and others separate them out, so it's important to ask for the total amount it will cost to close out the loan.

Once everything is squared away, decide when you want to close. Discuss your intended target date with the lender and ask about the charges for loan lock periods. You want to lock in the best rate for the right length of time.

Three Bad Omens for Stocks

The Hindenburg disaster happened over 76 years ago. But it's getting a lot of attention today...   The term "Hindenburg Omen" was named after the infamous 1937 crash of a German airship. Today, Wall Street uses it to describe a set of events that often occurs before the stock market crashes and burns.   We had three of these omens earlier this month.  Here's what has to happen in order to trigger a Hindenburg Omen...  

1.	At least 2.8% of the NYSE is hitting new 52-week highs... and at least 2.8% of the NYSE is hitting new 52-week lows.
2.	The NYSE is higher than it was 50 days ago.
3.	The McClellan Oscillator is negative.
4.	The number of 52-week highs is not more than twice the number of new 52-week lows.

  Once the omen is triggered, it's valid for 30 days. So if we're going to get a hard pullback in the stock market – as I've been arguing for the past couple months – then it ought to happen sometime in the next month.   Like most indicators, though, the omen doesn't have a perfect track record. There have been plenty of "false" signals over the past few years. And those false signals have a lot of folks dismissing the validity of last week's omens.   But here's the thing...   By itself, the Hindenburg Omen might not mean much because it triggers a lot of false signals. But when you get a cluster of Hindenburg Omen signals during a period of rising interest rates and NYSE margin levels hitting historic highs – like before the crashes in early 2000 and late 2007 – the Hindenburg Omen can be the third strike.   Every stock-market decline greater than 5% since 1985 has been preceded by a Hindenburg Omen. That's enough of a reason to be a little cautious right now.   Best regards and good trading,   Jeff Clark

Why Prosensa NV Shares Roared Higher

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Prosensa (NASDAQ: RNA  ) , a clinical-stage developer of RNA-modulating therapeutic agents for genetic disorders, jumped as much as 50% after reporting additional clinical findings on drisapersen at the JPMorgan Healthcare Conference.

So what: According to Prosensa's press release, which corresponds with its earlier presentation time at the JPMorgan Healthcare Conference, further analysis from the aggregate data collected from its late-stage drisapersen trial to treat Duchenne muscular dystrophy suggest that earlier treatment of the disease, and therefore a longer duration of treatment, could delay progression of the disease. Prosensa intends to consult with clinical experts and regulators to determine if there is a path forward for drisapersen, which failed to meet its primary endpoint in a phase 3 trial in September.

Now what: Before you get too excited, my suggestion would be "Don't!" There are a lot of variables to work through here, including persuading the Food and Drug Administration that drisapersen has clinical benefits following a trial that demonstrated no benefits over the placebo, and the development of a drug that has no partner, as GlaxoSmithKline (NYSE: GSK  ) announced that it would be ending its pact with Prosensa earlier this week. To further complicate matters, Sarepta Therapeutics (NASDAQ: SRPT  ) earlier today reported 120-week results for eteplirsen, which showed continued six-minute walk test improvements relative to the placebo. In other words, drisapersen may not be a dead compound, but on a scale of dead to FDA-approved, it's a lot closer to the dead end at the moment. As such, I'd take today's gains with a grain of salt.

10 Best Stocks For 2014

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Amazon: 4 Key Long-Term Growth Drivers

Amazon.com  (NASDAQ: AMZN  )  is part of an extremely rare breed. Year in and year out, almost all traditional valuation metrics make the company seem to be overvalued. Despite this, its stock has managed to go through the roof every year, without many signs of slowing down aside from minor hiccups. Amazon's outsize growth prospects from a number of different sources will pave the way for it to do very well in 2014. 

Retail and AmazonFresh
Amazon's retail sales from its own inventory still make up roughly 81% of the company's total sales volume. Amazon is taking huge strides in growing its retail sales to consumers, by constantly diving into newer markets. The company is getting into the massive consumer packaged goods industry in the U.S., which is estimated to be a $850 billion market.

Amazon is moving into Wal-Mart's (NYSE: WMT  ) territory by selling consumer packaged goods and household essentials. However, Wal-Mart is fighting back by testing out same-day delivery in select cities. Wal-Mart is enabling customers in some cities to order online, and ship to their desired locations, for a flat $10 fee, and in the process developing a more robust e-commerce presence. 

In the U.S., only 9% of all shopping is conducted online. And over time, online shopping as a percentage of total retail should grow much faster as well. The secular shift from offline to online has been accelerating this year, driven by purchases on mobile devices. Amazon recently disclosed that 50% of its customers during the holiday season made a purchase from a mobile device. 

Amazon stands to benefit as more consumers across the globe shop more online. Amazon has a small presence in the shipping of groceries and consumer staples through its subsidiary Soap.com and AmazonFresh locations in select U.S. cities. The robust growth of Amazon Prime subscriptions in the last few quarters will almost certainly guarantee the growth of the e-tailer as well.

Third-party business
Amazon continues to gain market share in its relatively high-margin third-party business driven by Fulfillment by Amazon and Prime. Amazon is signing up more merchants and reducing time to ship the products by placing more fulfillment centers near major U.S. cities. Amazon's Marketplace business is doing well, in spite of competition from rival eBay  (NASDAQ: EBAY  ) . 

In the last quarter, eBay's revenues grew 14% year over year to $3.9 billion. The company is a favorite among merchants because it doesn't sell goods from its own inventory and offers a payment processing platform in the form of PayPal.

However, Amazon's service sales, which includes the commissions the company earns from its Marketplace business, are growing more than twice as fast as its own retail operations. This growth far outstrips eBay's growth. In the third quarter of 2013, Amazon's service sales grew 45% while sales from its own retail business grew 20%. 

Amazon's presence in emerging markets is very small compared to its presence in the United States. Amazon earns about 40% of its total revenues from international markets, and the big three markets for Amazon are Japan, the U.K., and Germany. The company also recently started offering a price-comparison platform under the Marketplace business model in India called Junglee.com. Amazon's presence as a marketplace in large markets like India and its retail operations in China will fuel the company's long-term growth prospects from these emerging markets.

Amazon Web Services
Amazon's cloud business is gaining steam. The company doesn't reveal the revenues of its AWS business, but in the most recent quarter the company's revenues from its "Other" segment grew 56% year over year to $1.01 billion. It is widely believed that Amazon Web Services makes up the majority of these revenues, with advertising and credit card fees making up the rest.

The company's cloud computing business enables enterprises, governments, and startups to utilize back-end computing power at variable costs instead of laying out large-scale infrastructure expenses. Amazon charges on a pay-as-you-go basis instead of an annual subscription, giving customers more flexibility at a much lower cost. Amazon is likely to remain a leader in the cloud infrastructure services as it attracts large government and agency customers through the introduction of newer cloud computing products and a host of new features. 

Amazon's revenues in the Infrastructure-as-a-Service, or IaaS, arena is bigger than that of its four largest competitors combined; this means that it beats out Google, IBM, Microsoft and salesforce.com, according to Synergy Research Group. In the third quarter of 2013, Synergy estimates that Amazon's revenues from the segment were more than $700 million. Amazon will gain more market share in the growing cloud computing market moving forward, allowing the gross margins to ramp up notably from current levels of 27% to 28%.  

Kindle ecosystem
Owing to the success of its Kindle line of tablets and e-readers, Amazon is generating billions in revenue from content sales. The company recently disclosed that the Cyber Monday weekend was the best ever for Kindle Fire tablets and e-readers. 

Amazon now has more than 20 million Prime customers. And this growth in Prime subscribers will lay the foundation for a lot more sales in Amazon's ecosystem, because Prime users are a lot more likely to shop on Amazon's massive platform. 

5 Best Insurance Stocks To Buy Right Now

Amazon is constantly adding more digital media for its customers, and recently stated that its offerings of movies, books, TV shows, audiobooks, songs, apps, games, and similar content surged to 27 million items in 2013. With a larger base of Kindle owners, the company's revenues from its Kindle ecosystem will see stellar growth in 2014 and beyond.

The takeaway
Amazon is a lot less global compared to numerous other leading tech companies. As the company expands and builds its business infrastructure in newer countries, however, the company's revenues will continue to swell. The company's higher-margin businesses, including AWS and Amazon Marketplace, will lead to margin expansion of the overall business after its current investment cycle. And up-front payments from Prime subscribers will enable Amazon to control its shipping costs as well. Amazon investors have a lot to cheer for. 

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