JP Morgan to Pay $920M in “London Whale” Settlements (JPM)

On Thursday, investment bank JPMorgan Chase & Co (JPM) announced that it will pay $920 million in a “London Whale” settlement.

JPM will pay $920 in penalties in the U.S. and the U.K. to settle liabilities from its $6.2 billion derivatives loss. The company will pay $300 million to the U.S. Office of the Controller of the Currency, $200 million to the Federal Reserve, $200 million to the SEC and 137.6 million pounds to the UK’s Financial Conduct Authority.

JPM’s CEO and Chairman Jamie Dimon commented: "We have accepted responsibility and acknowledged our mistakes from the start, and we have learned from them and worked to fix them. We will continue to strive towards being considered the best bank – across all measures – not only by our shareholders and customers, but also by our regulators. Since these losses occurred, we have made numerous changes that have made us a stronger, smarter, better Company."

JPMorgan shares were down 55 cents, or 1.03%, during Thursday morning trading. The stock is up 20% YTD.

Altra Holdings Hits a New 52-Week High - Analyst Blog

Shares of Altra Holdings, Inc. (AIMC) touched a new 52-week high of $30.44 during its trading session on Jul 9. This represents an increase over the previous high of $30.10 reached on May 28.

Altra Holdings closed the trading day on Jul 9 at $29.94, reflecting a solid year-to-date return of 88.9%. The trading volume for the session was 0.052 million shares. Further upside potential exists for this Zacks Rank #3 (Hold) industrial electrical equipment maker as can be deduced from its earnings estimate revisions in the last 60 days and expected earnings growth of 19.9% for 2013.

Growth Drivers

Altra Holdings posted quite decent financial results for the first quarter 2013 with its non-GAAP earnings per share coming in at 45 cents versus 40 cents earned in the year-ago quarter. Results were in-line compared with the Zacks Consensus Estimate.

Fewer shipping days led to a revenue decline of 3.7% in the quarter. Offsetting this was lower cost of sales that helped improve gross margin by 50 basis points to settle at 30%. Interest expense was down by 55%.

Altra Holdings also announced a quarterly dividend rate increase of 25% for the second quarter 2013. The rate currently is 10 cents (or 40 cents on an annualized basis).

Additionally, Altra Holdings had a positive earnings surprise in all of the four trailing quarters with an average of 18.7%. This along with the decent first quarter 2013 results has raised optimism for a better performance ahead. We currently have an Earnings ESP (Read: Zacks Earnings ESP: A Better Method) of +2.4% for 2013 and +18.7% for 2014.

Estimate Revisions Show Potency

Over the last 60 days, the Zacks Consensus Estimate for Altra Holdings increased by 1.0% to $2.12 per share for 2014 while the same remained stable for 2013.

Other stocks to watch out for in the industry are Kawasaki Heavy Industries Ltd. (KWHIY), with a Zacks Rank #1 (Strong Buy) while Chart Industries Inc. (GTLS) and Middleby Corp. (MIDD), each h! as a Zacks Rank #2 (Buy).

Best Small Cap Companies To Own In Right Now

The stock market finished 2012 with double-digits returns. The drama in Washington seemed only to push the market higher, as evidenced by the rally again at the start of the new year. As investors are happier with the higher balances in their account, they should never forget the word ��ISK,��which is directly linked to the valuations of the assets they own. A higher current valuation always implies lower future returns. GuruFocus hosts three pages about market valuations. The first is the market valuation based on the ratio of total market cap over GDP; the second is the measurement of the U.S. market valuation based on the Shiller P/E. These pages are for the U.S. market. We have also created a new page for international markets. You can check it out here. All pages are updated at least daily. Monthly data is displayed for the international market.

Why Is This Important?

As pointed out by Warren Buffett, the percentage of total market cap (TMC) relative to the U.S. GNP is ��robably the best single measure of where valuations stand at any given moment.��

Knowing the overall market valuation and the expected market returns will give investors a clearer head on where we stand for future market returns. When the overall market is expensive and positioned for poor returns, the overall market risk is high. It is important for investors to be aware of this and take consideration of it in their asset allocation and investing strategies.

Please keep in mind that the long-term valuations published here do not predict short-term market movement. But they have done a good job predicting the long-term market returns and risks.

Wise man Howard Marks also pointed out that investors should always know where we are with the market. Predicting the direction of the market is hard. But investors can always make educated decisions based on current conditions.

Why Did We Develop These Pages?

We developed these pages because of the lessons we learned over years of val! ue investing. From the market crashes in 2001 to 2002 and 2008 to 2009, we learned that value investors should also keep an eye on overall market valuation. Many times value investors tend to find cheaper stocks in any market. But a lot of times the stocks they found are just cheaper, instead of cheap. Keeping an eye on the overall market valuation will help us to focus on absolute value instead of relative value.

The indicators we develop focus on the long term. They will provide a more objective view on the market.

Ratio of Total Market Cap over GDP - Market Valuation and Implied Returns

The information about the market valuation and the implied return based on the ratio of the total market cap over GDP is updated daily. The total market cap as measured by Wilshire 5000 index is now 97.5% of the U.S. GDP. The stock market will barely return 4% a year in the coming years. As a comparison, 12 months ago, the ratio of total market cap over GDP was 87.4%; it was likely to return 5.7% a year from that level of valuation. The 13% gain of 2012 has reduced the future gains by about 1.7% a year.

For details, please go to the daily updated page. In general, the returns of investing in an individual stock or in the entire stock market are determined by these three factors:

1. Business Growth

If we look at a particular business, the value of the business is determined by how much money this business can make. The growth in the value of the business comes from the growth of the earnings of the business growth. This growth in the business value is reflected as the price appreciation of the company stock if the market recognizes the value, which it does, eventually.

If we look at the overall economy, the growth in the value of the entire stock market comes from the growth of corporate earnings. As we discussed above, over the long term, corporate earnings grow as fast as the economy itself.

2. Dividends

Dividends are an important portion of the inve! stment re! turn. Dividends come from the cash earning of a business. Everything equal, a higher dividend payout ratio, in principle, should result in a lower growth rate. Therefore, if a company pays out dividends while still growing earnings, the dividend is an additional return for the shareholders besides the appreciation of the business value.

3. Change in the Market Valuation

Although the value of a business does not change overnight, its stock price often does. The market valuation is usually measured by the well-known ratios such as P/E, P/S, P/B etc. These ratios can be applied to individual businesses, as well as the overall market. The ratio Warren Buffett uses for market valuation, TMC/GNP, is equivalent to the P/S ratio of the economy.

Putting all the three factors together, the return of an investment can be estimated by the following formula:

Investment Return (%) = Dividend Yield (%)+ Business Growth (%)+ Change of Valuation (%)

From the contributions we can get the predicted return of the market.

The Predicted and the Actual Stock Market Returns

This model has done a decent job in predicting the future market returns. You can see the predicted return and the actual return in the chart below.



The prediction from this approach is never an exact number. The return can be as high as 10% a year or as long as -2% a year, depending where the future market valuation will be. In general, investors need to be cautious when the expected return is low.

Shiller P/E - Market Valuation and Implied Returns

The GuruFocus Shiller P/E page indicates that the Shiller P/E Shiller P/E: 22.2. Shiller P/E is 34.5% higher than the historical mean of 16.5. Implied future annual return: 2.7%. As a comparison, the regular trailing twelve month P/E is 17, slightly higher than the historical mean of 16. That is also why the media pundits are saying that the market is cheap.

Twelve months ago, the Shiller P/E was 26.4, and the regular trailin! g twelve ! month P/E was around 14. The market did look cheap with the trailing twelve month P/E.

The Shiller P/E chart is shown below:



Over the last decade, the Shiller P/E indicated that the best time to buy stocks was March 2009. However, the regular P/E was at its highest level ever. The Shiller P/E, similar to the ratio of the total market cap over GDP, has proven to be a better indication of market valuations.

Overall, the current market valuation is more expensive than the most part of the last 130 years. It is cheaper than most of the time over the last 15 years.

To understand more, please go to GuruFocus' Shiller P/E page.

John Hussman�� Peak P/E:

John Hussman uses the peak P/E ratio to smooth out the distortion of the corporate profits caused by the fluctuations of the profit margins. The current market return projected by his model is around 4% a year.

In his commentary on Nov. 26, Overlooking Overvaluation, he used the historical valuation of price to revenues, book values, dividends and cyclically adjusted earnings, and concluded that the market is somewhere between 40% to 70% above pre-bubble valuation norms. With any of these long-term valuation ratios, the market seems positioned for returns of around 5%, as shown in the chart below:

[img] [www.hussmanfunds.com] [/img]

This agrees with the returns projected by the ratio of total market cap over GDP and Shiller P/E.

In all the three approaches discussed above, the fluctuations of profit margin are eliminated by using GDP, the average of trailing 10-year inflation-adjusted earnings, and peak P/E, revenue, or book value, etc. Therefore they arrive at similar conclusions: The market is overvalued, and it is likely to return only 2% to 4% a year in the future years.

Jeremy Grantham�� 7-Year Projection:

Jeremy Grantham�� firm GMO publishes a monthly seven-year market forecast. The latest seven-year forecast published by GMO is below:

Asset Class

Annual Real Return
US Large Cap	0.2%
US Small Cap	-0.40%
US High Quality	4.9%
International Large Cap	4.4%
International Small Cap	4.1%
Emerging Market	6.2%
US Bonds	-1.4%
International Bonds	-1.60%
emerging Debt	2%
Index Linked Bonds	-2.70%
Cash	0.1%

GMO expected U.S. large cap real return is 0.8%. This number agrees with what we find out with market/GDP ratio and Shiller P/E ratio. The U.S. high quality will have higher return. The return is expected to be 4.9% a year.

Insider Trends

As indicated by the three different approaches discussed above, the best buying opportunities over the last five years appeared when the projected returns were at their highest level from October 2008 to April 2009, when investors could expect 10% a year from the U.S. market.

If average investors missed this opportunity, corporate insiders such as CEOs, CFOs and directors did not. As a whole, they purchased their own company shares at more than double the normal rate from October 2008 to April 2009. Many of these purchases resulted in multi-bagger gains. This confirmed again the conclusions of earlier studies: The aggregated activities of insiders can serve as a good indicator for locating the market bottoms. Insiders as a whole are smart investors of their own companies. They tend to sell more when the market is high, and buy more when the market is low.

As of August, we observed more insider buying activities. This is the current insider trend for S&P 500 companies:



The latest trends of insider buying are updated daily at GuruFocus' Insider Trend page. Data is updated hourly on this page. The insider trends of different sectors are also displa! yed in th! is page. The latest insider buying peak is at this page: September of 2011, when the market was at recent lows.

Conclusion: The stock market is not cheap as measured by long-term valuation ratios. It is positioned for about 3% to 5% of annual returns for the next decade. By watching the overall market valuations and the insider buying trends investors will have a better understanding of the risk and the opportunities. The best time to buy is when the market valuation is low, and insiders are enthusiastic about their own company's stocks.

Investment Strategies at Different Market Levels

The Shiller P/E and the ratio of total market cap over GDP can serve as good guidance for investors in deciding their investment strategies at different market valuations. Historical market returns prove that when the market is fair or overvalued, it pays to be defensive. Companies with high-quality business and strong balance sheets will provide better returns in this environment. When the market is cheap, beaten-down companies with strong balance sheets can provide outsized returns.

To summarize:

1. When the market is fair valued or overvalued, buy high-quality companies such as those in the Buffett-Munger Screener.
2. When the market is undervalued, buy low-risk beaten-down companies like those in the Ben Graham Net-Net Screener. Buy a basket of them and be diversified.
3. If the market is way over valued, stay in cash. You may consider hedging or short.

Best Small Cap Companies To Own In Right Now: InterDigital Inc.(IDCC)

Interdigital, Inc. engages in the design and development of digital wireless technology solutions. The company offers technology solutions for use in digital cellular and wireless products and networks, including 2G, 3G, 4G, and IEEE 802-related products and networks. It holds patents related to the fundamental technologies that enable wireless communications. The company licenses its patents to equipment producers that manufacture, use, and sell digital cellular and IEEE 802-related products; and licenses or sells mobile broadband modem solutions, including modem IP, know-how, and reference platforms to mobile device manufacturers, semiconductor companies, and other equipment producers that manufacture, use, and sell digital cellular products. InterDigital?s solutions are incorporated in various products comprising mobile devices, such as cellular phones, tablets, notebook computers, and wireless personal digital assistants; wireless infrastructure equipment, such as base stations; and components, dongles, and modules for wireless devices. The company was founded in 1972 and is headquartered in King of Prussia, Pennsylvania.

Best Small Cap Companies To Own In Right Now: Texas Instruments Incorporated(TXN)

Texas Instruments Incorporated engages in the design and sale of semiconductors to electronics designers and manufacturers worldwide. The company?s Analog segment offers high-performance analog products comprising standard analog semiconductors, such as amplifiers, data converters, and interface semiconductors; high-volume analog and logic products; and power management semiconductors and line-powered systems. Its Embedded Processing segment includes DSPs that perform mathematical computations to process and enhance digital data; and microcontrollers, which are designed to control a set of specific tasks for electronic equipment. The company?s Wireless segment designs, manufactures, and sells application processors and connectivity products. Its Other segment offers smaller semiconductor products, which include DLP products that are primarily used in projectors to create high-definition images; and application-specific integrated circuits. This segment also provides handhe ld graphing and scientific calculators, as well as licenses technologies to other electronic companies. The company serves the communications, computing, industrial, consumer electronics, automotive, and education sectors. Texas Instruments Incorporated sells its products through a direct sales force, distributors, and third-party sales representatives. It has collaboration agreements with PLX Technology Inc.; Neonode, Inc.; and Ubiquisys Ltd. The company was founded in 1938 and is headquartered in Dallas, Texas.

Advisors' Opinion:

• [By Beth Piskora]

  They are listed below:

  Altera (ALTR)��ielding 1.7%
  
  Apple (AAPL)��ielding 2.5%
  
  Applied Materials (AMAT)��ielding 2.6%
  
  Cisco (CSCO)��ielding 2.9%
  
  EMC Corp. (EMC)��ielding 1.5%
  
  International Business Machines (IBM)��ielding 2.0%
  
  KLA-Tencor (KLAC)��ielding 3.2%
  
  Microchip Technology (MCHP)��ielding 3.6%
  
  Oracle (ORCL)��ielding 1.5%
  
  Qualcomm (QCOM)��ielding 2.1%
  
  Texas Instruments (TXN)��ielding 2.9%
  
  Xilinx (XLNX)��ielding 2.3%
  
  

  Subscribe to S&P's The Outlook here��/P>

• [By Lee Jackson]

  Texas Instruments Inc. (NASDAQ: TXN) also supplies VOIP chips to Cisco, but their sales to the company amount to a very small percentage which is not expected to hurt overall performance. The consensus price target for the venerable tech company is $38. Shareholders are paid a 2.9% dividend.

• [By Jeff Reeves]

  Texas Instruments (TXN) might not be the sexiest stock out there in a post-PC age, where mobile devices are all the rage. But this chipmaker still does very brisk business across a host of tech segments, and in fact has recently eclipsed its pre-recession highs; TXN stock is up more than 40% in the past 12 months.

• [By Dividends4Life]

  Texas Instruments Inc. (TXN) engages in the design, manufacture, sale of semiconductors to electronics designers and manufacturers worldwide. September 19th the company increased its quarterly dividend 7% to $0.30 per share. The dividend is payable November 18, 2013, to stockholders of record on October 31, 2013. The yield based on the new payout is 3.9%.

Top 10 Blue Chip Stocks To Own For 2014: Rackspace Hosting Inc(RAX)

Rackspace Hosting, Inc. operates in the hosting and cloud computing industry. It provides information technology (IT) as a service, managing Web-based IT systems for small and medium-sized businesses, as well as large enterprises worldwide. The company?s service suite includes dedicated hosting comprising customer management portal and other management tools that manage data center, network, hardware devices, and operating system software; and cloud computing that enables customers to provide and manage a pool of computing resources, as well as delivery of computing resources to business when they need them. It offers cloud servers, cloud files, and cloud sites, as well as cloud applications, such as email, collaboration, and file back-ups; and hybrid hosting that provides a combination of dedicated hosting and cloud computing services. The company also offers customer support services. It sells its service suite through direct sales teams, third-party channel partners, an d online ordering. The company was formerly known as Rackspace.com, Inc. and changed its name to Rackspace Hosting, Inc. in June 2008. Rackspace Hosting, Inc. was founded in 1998 and is headquartered in San Antonio, Texas.

Best Small Cap Companies To Own In Right Now: Sky-mobi Limited(MOBI)

Sky-mobi Limited engages in the operation of a mobile application store in the People?s Republic of China. It works with handset companies to pre-install its Maopao mobile application store on handsets and with content developers to provide users with applications and content titles. The users of its Maopao store could browse, download, and purchase a range of applications and content, such as single-player games, mobile music, and books. The company?s Maopao store enables mobile applications and content to be downloaded and run on various mobile handsets with hardware and operating system configurations. It also operates a mobile social network community, the Maopao Community, where it offers localized mobile social games, as well as applications and content with social network functions to its registered members. The company owns proprietary mobile application technology in the cloud computing, the MRP format, and SDK development environment. As of March 31, 2011, it had entered into cooperation agreements with approximately 523 handset companies to pre-install Maopao. The company was formerly known as Profit Star Limited and changed its name to Sky-Mobi Limited in October 2010. Sky-mobi Limited was incorporated in 2007 and is headquartered in Hangzhou, China.

Best Small Cap Companies To Own In Right Now: bebe stores inc.(BEBE)

bebe stores, inc. engages in the design, development, and production of women?s apparel and accessories. Its products include a range of separates, tops, dresses, active wear, and accessories in career, evening, casual, and active lifestyle categories. The company markets its products under the bebe, BEBE SPORT, bbsp, and 2b bebe brand names targeting 21 to 34-year-old woman. As of July 2, 2011, it operated 252 retail stores, and an online store at bebe.com in the United States, the District of Columbia, Puerto Rico, the U.S. Virgin Islands, Japan, and Canada, as well as 60 international licensee operated stores in south east Asia, the United Arab Emirates, Israel, Russia, Mexico, and Turkey. The company was founded in 1976 and is headquartered in Brisbane, California.

Advisors' Opinion:

• [By Ben Levisohn]

  Bebe Stores (BEBE) reported a loss of 14 cents a share, more than the 13 cent loss forecast by analysts, and said it would experience a loss in the low- to mid-teens during the current quarter.

Best Small Cap Companies To Own In Right Now: Achillion Pharmaceuticals Inc.(ACHN)

Achillion Pharmaceuticals, Inc., a biopharmaceutical company, engages in the discovery, development, and commercialization of treatments for infectious diseases. The company focuses on the development of antivirals for the treatment of chronic hepatitis C; and the development of antibacterials for the treatment of resistant bacterial infections. Its drug candidates for the treatment of chronic HCV include ACH-1625, a protease inhibitor, which is in phase IIa clinical trial for the treatment of chronic HCV; ACH-2684, a pangenotypic protease inhibitor, which is in phase I clinical trial for the treatment of chronic HCV infection; and NS5A inhibitors for the treatment of chronic HCV infection, including ACH-2928, which is to enter a phase I clinical trial, as well as various additional NS5A inhibitors in preclinical development. Its pipeline of product candidates also includes ACH-702 and ACH-2881 for drug resistant bacterial infections; elvucitabine for HIV infection; and AC H-1095 for HCV infection. The company was founded in 1998 and is based in New Haven, Connecticut.

Top Analyst Downgrades and Stocks to Sell: Chesapeake, Potash, Harmony and More

Investors are looking for bargain stocks but also trying to decide which stocks they should get out of, now that interest rates have risen and stocks have slid. These same investors frequently get to see the analyst upgrades and Buy ratings from Wall Street firms. What they often do not get to see is when analyst downgrade stocks to sell or to avoid. 24/7 Wall St. reviews many fresh research calls each and every day to find great ideas from value stocks to growth stocks to dividend stocks, and we have broken out the negative analyst calls today. These are this Wednesday’s top analyst downgrades and cautious research notes from Wall Street.

Agrium Inc. (NYSE: AGU) was downgraded to Neutral from Overweight at HSBC.

Chesapeake Energy Corp. (NYSE: CHK) was downgraded to Neutral from Positive now that shares are over $25 by Susquehanna.

Harmony Gold Mining Co. Ltd. (NYSE: HMY) was downgraded to Sell from an already cautious Neutral rating at UBS.

Mosaic Co. (NYSE: MOS) was downgraded to Underweight from Neutral at HSBC.

Potash Corp. of Saskatchewan Inc. (NYSE: POT) was downgraded to Underweight from Overweight at HSBC.

Speaking of out of favor stocks potentially creating a value situation, we have identified five big stocks trading under book value for you value investors.

JPMorgan to Pay More than $700 Million in Fines Over London Whale: Reports

Top 10 Biotech Stocks To Watch For 2014

NEW YORK (TheStreet) -- JPMorgan Chase (JPM) is close to reaching a settlement with multiple regulators over the "London Whale" trading losses, according to press reports.

The bank may pay at least $750 million to settle inquiries into risky derivative trades at its London office that led to more than $6 billion in losses, according to Bloomberg News.

The settlements are expected to be announced later this week.

The U.S. Securities and Exchange, the Office of the Comptroller of the Currency and other regulators are expected to find the company liable for inadequate risk control. The bank is expected to admit wrongdoing as part of its settlement with the SEC, according to a report from Dow Jones. JPMorgan declined to comment on the press reports. The U.S. Department of Justice last month filed criminal charges against two of the bank's former traders, Javier Martin-Artajo and Julien Grout, with four counts of conspiracy, wire fraud, faking books and records and causing JPMorgan to make "false and misleading statements" in two securities filings. The trader who was directly responsible for the trades, Bruno Iksil, also known as the London Whale because the size of his trades were so large they were distorting the market, was not charged. Last week, JPMorgan CFO Marianne Lake said its reserve for legal losses could exceed $1.5 billion in the third quarter, offsetting the benefits from improving credit quality. According to a recent report by the Wall Street Journal, the bank faces $4 billion in compliance costs and is adding more than 5,000 employees to clean up its risk and compliance problems. -- Written by Shanthi Bharatwaj New York. >Contact by Email. Follow @shavenk

Carlyle Group to Acquire New Jersey Based Power Generation Facility (CG)

On Monday, asset management firm Carlyle Group LP (CG) announced that it has agreed to acquire a New Jersey based power plant from Energy Capital Partners.

Carlyle Group will acquire the Red Oak power generation plant, which is located in Sayreville, NJ. The Red Oak facility is a highly efficient 823-MW natural gas-fired combined-cycle power plant and operates under a long term power purchase agreement.

Separately, the firm has agreed to purchase five power plants in California. These five facilities account for 320 MW. The deal was made in conjunction with CG’s power affiliate Cogentrix.

Carlyle shares were mostly flat during pre-market trading Monday. The stock has been mostly flat YTD.

Top 10 Companies For 2014

DISH Network (NASDAQ: DISH  ) may have lost the high-stakes poker game over some serious wireless operations, but the satellite broadcaster has plenty of backup ideas up its sleeve. First up: a fresh marketing agreement with Southwest Airlines (NYSE: LUV  ) that delivers free movies and TV shows to Southwest passengers, courtesy of DISH.

The service delivers a subset of the content you'd get as a DISH customer with a Hopper account. Just like the Hopper deal, you'll watch a limited selection of live TV channels along with "up to 75" on-demand programs via your own mobile electronics. The data stream is powered by Southwest's onboard Wi-Fi service.

DISH suggests using Apple (NASDAQ: AAPL  ) iPads and iPhones, and actually handed out free iPad 2 tablets (a two-year-old model that still sells for $399) to about 100 Southwest passengers in a launch-day stunt. Android users and other mobile platforms are taking a gamble as the service only supports "some" mobile devices without providing a comprehensive list.

Top 10 Companies For 2014: Service Corporation International(SCI)

Service Corporation International provides deathcare products and services in the United States, Canada, and Germany. Its funeral service and cemetery operations consist of funeral service locations, cemeteries, funeral service/cemetery combination locations, crematoria, and related businesses. The company provides various professional services relating to funerals and cremations, including the use of funeral facilities and motor vehicles, and preparation and embalming services. It also sells funeral related merchandise, including caskets, burial vaults, cremation receptacles, cremation memorial products, flowers, and other ancillary products and services at funeral service locations. The company?s cemeteries provide cemetery property interment rights, including mausoleum spaces, lots, and lawn crypts; and sell cemetery related merchandise and services comprising stone and bronze memorials, markers, merchandise installations, and burial openings and closings. It also sells preneed funeral and cemetery products and services whereby a customer contractually agrees to the terms of certain products and services to be delivered and performed in the future. As of December 31, 2009, Service Corporation operated 1,254 funeral service locations and 372 cemeteries, including 208 combination locations, covering 43 states in the United States, 8 Canadian provinces, the District of Columbia, and Puerto Rico, as well as 12 funeral homes in Germany. The company was founded in 1962 and is headquartered in Houston, Texas.

Top 10 Companies For 2014: Australia and New Zealand Banking Group Ltd (ANZ.AX)

Australia and New Zealand Banking Group Limited (ANZ) provides a range of banking and financial products and services to retail, small business, corporate and institutional clients. The Company conducts its operations in Australia, New Zealand and the Asia Pacific region. It also operates in a range of other countries, including the United Kingdom and the United States. The Company operates on a divisional structure with Australia, International and Institutional Banking (IIB), New Zealand, and Global Wealth and Private Banking. As of September 30, 2012, the Company had 1,337 branches and other points of representation worldwide, excluding automatic teller machines (ATMs). In September 2012, it sold its remaining shareholding in Visa Inc.

10 Best Warren Buffett Stocks To Own For 2014: Klondex Mines Com Npv (KDX.TO)

Klondex Mines Ltd., together with its subsidiary, Klondex Gold and Silver Mining Co., engages in evaluating, acquiring, owning, exploiting, exploring, and developing mineral properties in Nevada. The company focuses on exploring and developing gold and silver properties. Its principal property is the 100% owned Fire Creek Property totaling 1,235.39 acres of owned/leased fee lands located in north central Nevada. The company was formerly known as Attila Resources Limited and changed its name to Klondex Mines Ltd. in October 1974. Klondex Mines Ltd. was founded in 1971 and is headquartered in Vancouver, Canada.

Top 10 Companies For 2014: CEVA Inc.(CEVA)

CEVA, Inc., together with its subsidiaries, engages in licensing silicon intellectual property (SIP) for the handsets, mobile broadband, portable, and consumer electronics markets primarily in the United States, Europe, the Middle East, and the Asia Pacific. It designs and licenses DSP cores in the form of a hardware description language definition; a portfolio of application-specific platforms, including wireless baseband, audio, imaging and vision, voice over Internet protocols (VoIP), Bluetooth, and serial storage technology and serial attached SCSI; and development platforms, software development kits, and software debug tools that facilitate system design, debug, and software development. The company?s intellectual property (IP) is used by semiconductor and original equipment manufacturer companies for application-specific integrated circuits and application-specific standard products. It serves various markets, including feature phones, smartphones, machine to machi ne for various cellular standards, home entertainment, portable game consoles, and serial storage and telecommunication devices. CEVA, Inc. markets its technology through a direct sales force. The company was formerly known as ParthusCeva, Inc. and changed its name to CEVA, Inc. in December 2003. CEVA, Inc. was founded in 1999 and is headquartered in Mountain View, California.

Top 10 Companies For 2014: CDI Corporation(CDI)

CDI Corp. provides engineering and information technology project outsourcing solutions and professional staffing services primarily in the United States, the United Kingdom, and Canada. It operates in four segments: ES, MRI, Anders, and ITS. The ES segment provides engineering, design, project management, staffing, and outsourcing solutions to oil, gas, refining, alternative energy, power generation and energy transmission, chemicals, and heavy manufacturing industries; engineering, design, logistics, and staffing services to the defense industry, primarily in marine design, systems development, and military aviation support; engineering, design, project management, staffing, and facility start-up services to pharmaceutical, bio-pharmaceutical, and regulated medical services industries; and architecture, civil and environmental engineering, communication technology, and consulting services to governmental, educational, and private industry customers. The MRI segment opera tes as a global franchisor that does business as MRINetwork and provides the use of its trademarks, business systems, and training and support services to its franchisees who engage in the search and recruitment of executive, technical, professional, and managerial personnel for employment by their customers. It also provides training, implementation services, and back-office services to enable franchisees to pursue staffing opportunities. The Anders segment provides contract and permanent placement candidates to customers in the areas of architecture, building services, rail, commercial and industrial construction, consulting engineering, facilities management, interior design, surveying, and town planning. The ITS segment offers various information technology related services, which include staffing augmentation, permanent placement, outsourcing, and consulting. The company was founded in 1950 and is based in Philadelphia, Pennsylvania.

Advisors' Opinion:

• [By Vodicka]

  CDI Corp. provides engineering and information technology outsourcing and professional staffing services to its customers. Its EPS forecast for the current year is 0.45 and next year is 0.76. According to consensus estimates, its topline is expected to grow 10.13% current year and 8.49% next year. It is trading at a forward P/E of 20.04. Out of four analysts covering the company, one is positive and has a buy recommendation and three have hold ratings.

Top 10 Companies For 2014: Rogers Communication Inc.(RCI)

Rogers Communications, Inc. operates as a communications and media company in Canada. The company?s Wireless segment provides wireless voice and data communications services. It operates a global system for mobile communications and general packet radio service network. This segment markets its products and services under Rogers Wireless, Fido, and chatr brands. Its Cable segment offers cable television, high-speed Internet access, and cable telephony services. As of December 31, 2010, this segment provided digital cable services to approximately 1.7 million households; Internet service to approximately 1.7 million residential subscribers; and residential circuit-switched telephony services to approximately a million subscribers. This segment also offers local and long-distance telephone, enhanced voice and data services, and IP access. In addition, this segment operates a retail distribution chain consisting of approximately 400 stores that provide cable services and digi tal and Internet equipment, as well as offers digital video disc and video game sales and rentals. The company?s Media segment publishes magazines, trade and professional publications, and directories, as well as operates 55 radio stations in Canada; multicultural OMNI broadcast television stations; the 5 station Citytv television network; specialty sports television services, including Rogers Sportsnet, Sportnet ONE, and Setanta Sports Canada; specialty services, which comprise Outdoor Life Network, The Biography Channel Canada, and G4 Canada; and televised shopping service, The Shopping Channel. It also holds an ownership in a mobile sports and events production and distribution joint venture; delivers content and conducts ecommerce through the Internet; and owns Blue Jays, a League Baseball club, as well as Rogers Centre sports and entertainment venue. The company was founded in 1920 and is based in Toronto, Canada.

Advisors' Opinion:

• [By Pat Racaniello]

  Rogers Communications (RCI) is a Canadian communications firm with a presence in every major telecom segment, including wireless, wireline, cable television and high speed internet. Wireless communications is the biggest segment of the company’s revenues, with 56% of the most recent quarter contributed by wireless. The company is organized as a holding company, with stakes in major subsidiaries such as Rogers Broadcasting and Rogers Sports Group, which hold further stakes in multiple businesses.

  The stock last traded at $37.57, with an overall tight 52 week range of $40.82 - $33.62, representing low volatility. The price earnings ratio is near the industry average and the 5 year low price earnings at 14.4 times, considering the company just announced an 11% increase in the dividend. In addition, with far higher leverage than the industry at 245.39 (long term debt to equity), the company is also far more comfortable in terms of interest coverage at 4.3 versus 0.02.

Top 10 Companies For 2014: Taitron Components Incorporated(TAIT)

Taitron Components Incorporated engages in the distribution of brand name electronic components, as well as the supply of original designed and manufactured (ODM) electronic components. The company offers various discrete semiconductors, which include rectifiers, diodes, transistors, optoelectronic devices, commodity integrated circuits, and passive components. Its ODM products are marketed in wild animal feeders, timers for DC motor, public street light controllers, battery testers, universal remote control devices, and battery chargers industries. The company also provides engineering and turn-key services, focusing on providing ODM services for various projects. It serves electronic distributors, contract electronic manufacturers, and original equipment manufacturers. The company sells its products primarily in the United States, Mexico, Brazil, Taiwan, China, and Canada. It has strategic alliances with Princeton Technology Corporation and Teamforce Co. Ltd. The company was founded in 1989 and is headquartered in Valencia, California.

Top 10 Companies For 2014: Origin Energy Ltd(ORG.AX)

Origin Energy Limited, together with its subsidiaries, engages in the oil and gas exploration and production primarily in Australia and New Zealand. The company also involves in the generation of electricity, wholesale and retail sale of electricity and gas. It owns interests in the BassGas project in Victoria; the Kupe Gas project in New Zealand; the Otway Gas project in Victoria; and coal seam gas fields at Spring Gully, Fairview, and Peat in the Bowen Basin in central Queensland. The company generates gas-fired and wind power; holds interests in co-generation plants that supply electricity and steam under long-term contracts; and retails electricity, natural gas, LP gas, and other energy-related products and services. It serves approximately 4.6 million energy customers in Australia and the Pacific; and 520,000 electricity customers and 75,000 gas customers in New Zealand. Origin Energy Limited is headquartered in Sydney, Australia.

Top 10 Companies For 2014: Exelon Corp (EXC)

Exelon Corporation (Exelon) is an energy provider and holding company for several energy businesses. Exelon is engaged in the energy generation business through its Exelon Generation Company, LLC (Generation) subsidiary; wholesale and retail energy sales through its Constellation business unit, and the energy delivery business through its Baltimore Gas and Electric (BGE), Commonwealth Edison Company (ComEd) and PECO Energy Company (PECO) subsidiaries. It operates in 47 states, the District of Columbia and Canada. Exelon Generation has approximately 35,000 megawatts of owned capacity. Constellation provides energy products and services to approximately 100,000 business and public sector customers and approximately 1 million residential customers. Exelon's utilities deliver electricity and natural gas to more than 6.6 million customers in central Maryland, northern Illinois and southeastern Pennsylvania. On March 12, 2012, Constellation Energy Group, Inc. merged into Exelon. In December 2012, the Company sold its three Maryland coal-fired power plants to Raven Power Holdings LLC (Raven Power).

In August 2012, the Company sold its interest in five California power plants to IHI Corp. It includes two coal-powered and three biomass-based plants-with a total generation capacity of 70 megawatts. IHI acquired Exelon's 50% interest in four power plants and 45% interest in one plant. On September 30, 2011, Generation acquired Antelope Valley Solar Ranch One. On August 24, 2011, Generation acquired Wolf Hollow, LLC.

Exelon Generation Company, LLC

Generation is an electric generation company. Generation�� business consists of its owned and contracted electric generating facilities, its wholesale energy marketing operations and its retail supply operations. Generation has three reportable segments, which consists of the Mid-Atlantic, Midwest, and South and West regions. As of December 31, 2011, Generation owned generation resources with an aggregate net capacity of 25,544! megawatt, including 17,115 megawatt of nuclear capacity. Generation controlled another 5,025 megawatt of capacity through long-term contracts. Generation�� retail business provides retail electric and gas services as an unregulated retail energy supplier in Illinois, Pennsylvania, Michigan and Ohio.

Mid-Atlantic represents Generation�� operations primarily in Pennsylvania, New Jersey and Maryland (approximately 35% of capacity); Midwest includes the operations in Illinois, Indiana, Michigan and Minnesota (approximately 45% of capacity); and the South and West includes operations primarily in Texas, Georgia, Oklahoma, Kansas, Missouri, Idaho and Oregon (approximately 20% of capacity). As of December 31, 2011, Generation had ownership interests in 11 nuclear generating stations in service, consists of 19 units with an aggregate of 17,115 megawatt of capacity. Generation wholly owns all of its nuclear generating stations, except for Quad Cities Generating Station (75% ownership), Peach Bottom Generating Station (50% ownership) and Salem Generating Station (Salem) (42.59% ownership).

Commonwealth Edison Company

Commonwealth Edison Company is engaged principally in the purchase and regulated retail sale of electricity and the provision of distribution and transmission services to a diverse base of residential, commercial and industrial customers in northern Illinois. ComEd�� retail service has an area of approximately 11,400 square miles and an estimated population of nine million. The service territory includes the City of Chicago, an area of about 225 square miles with an estimated population of three million. As of December 31, 2011, ComEd had approximately 3.8 million customers.

PECO Energy Company

PECO is engaged principally in the purchase and regulated retail sale of electricity and the provision of transmission and distribution services to retail customers in southeastern Pennsylvania, including the City of Philadelphia, as wel! l as the ! purchase and regulated retail sale of natural gas and the provision of distribution services to retail customers in the Pennsylvania counties surrounding the City of Philadelphia. PECO�� combined electric and natural gas retail service territory has an area of approximately 2,100 square miles and an estimated population of four million. PECO provides electric distribution service in an area of approximately 1,900 square miles, with a population of approximately 3.9 million, including approximately 1.5 million in the City of Philadelphia. PECO provides natural gas distribution service in an area of approximately 1,900 square miles in southeastern Pennsylvania adjacent to the City of Philadelphia, with a population of approximately 2.4 million. PECO delivers electricity to approximately 1.6 million customers and natural gas to approximately 4,94,000 customers.

Top 10 Companies For 2014: BCSB Bancorp Inc.(BCSB)

BCSB Bancorp, Inc. operates as the holding company for Baltimore County Savings Bank, F.S.B. that provides various banking and financial services for consumers and businesses in the Baltimore Metropolitan Area. The company?s deposit products include checking accounts, money market accounts, statement and passbook savings accounts, individual retirement accounts, and certificates of deposit. Its loan portfolio comprises single-family residential mortgage loans; real estate loans comprising construction, single-family rental property, and commercial real estate loans; consumer loans, including automobile loans and home equity lines of credit; and commercial lines of credit. The company also offers life and annuity insurance products. As of September 30, 2009, it operated 18 branch offices in Baltimore County, Harford County, Howard County, and Baltimore City, Maryland. The company was founded in 1955 and is based in Baltimore, Maryland.

Is American Express a Risky Investment?

With shares of American Express Company (NYSE:AXP) trading at around $67.75, is AXP an OUTPERFORM, WAIT AND SEE or STAY AWAY? Let's analyze the stock with the relevant sections of our CHEAT SHEET investing framework:

C = Catalyst for the Stock's Movement

Who wants to read long paragraphs? Readers want facts. They want to get in and out as quickly as possible. At least in this case, your wish has been granted. Let's take a look at some positives and negatives for American Express.

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Positives:

Best valuation compared to peers 1.20 percent dividend yield (higher than peers) Members are often big spenders Analysts like the stock: 12 Buy, 12 Hold, 3 Sell New buyback program Global card spending increased 6 percent year-over-year Stable delinquency rates Lower salaries Decreased benefit expenses Decline in long-term debt to $56 billion from $59 billion Consistent revenue improvements on an annual basis Cash position increased to $28 billion from $22 billion Dividend hike of 15 percent

Negatives:

Didn't hold up as well as peers in 2008 Total expenses increased 1 percent year-over-year Increase in tax rate to 33 percent from 29 percent Earnings setback in 2012 ROE down to 23.3 percent from 27.1 percent Debt management still needs improvement

The chart below compares fundamentals for American Express, Mastercard Incorporated (NYSE:MA), and Visa Inc. (NYSE:V). American Express has a market cap of $74.39 billion, Mastercard has a market cap of $65.72 billion, and Visa has a market cap of $110.61 billion.

	AXP	MA	V
Trailing   P/E	17.10	24.40	46.52
Forward   P/E	12.88	17.72	19.67
Profit   Margin	15.12%	37.33%	22.46%
ROE	23.16%	43.07%	8.77%
Operating   Cash Flow	N/A	$2.95 Billion	$899.00 Million
Dividend   Yield	1.20%	0.40%	0.80%
Short   Position	1.40%	N/A	1.30%

 

Let's take a look at some more important numbers prior to forming an opinion on this stock.

E = Equity to Debt Ratio Is Normal

The debt-to-equity ratio for American Express is close to the industry average of 3.40, but saying American Express has shown quality debt management would be a downright lie. At least the company is heading in the right direction in this regard.

	Debt-To-Equity	Cash	Long-Term Debt
AXP	3.11	$28.00 Billion	$59.00 Billion
MA	0.07	$5.04 Billion	$51.00 Million
V	Top 5 Canadian Companies To Buy Right Now 0.00	$2.78 Billion	$0

 

T = Technicals Have Strong  

American Express has outperformed Mastercard and Visa year-to-date, but it has underperformed its peers over a three-year time frame. American Express offers the highest yield of the three (see chart in Catalyst section).

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	1 Month	Year-To-Date	1 Year	3 Year
AXP	1.19%	18.63%	14.11%	54.86%
MA	-0.39%	9.15%	17.42%	111.80%
V	-0.85%	10.56%	36.48%	84.10%

 

At $67.75, American Express is trading above all its averages.

50-Day   SMA	65.03
100-Day   SMA	61.98
200-Day   SMA	59.50

 

E = Earnings Have Suffered a Setback             

Earnings had been improving on an annual basis since 2010, but there was a setback in 2012. However, revenue has climbed for three consecutive years.

	2008	2009	2010	2011	2012
Revenue   ($)in   billions	28.36	24.52	27.58	29.96	31.58
Diluted   EPS ($)	2.32	1.54	3.35	4.12	3.89

 

When we look at the previous quarter on a year-over-year basis, we see an improvement in revenue and earnings.

	3/2012	6/2012	9/2012	12/2012	3/2013
Revenue   ($)in   billions	7.61	7.97	7.86	8.14	7.88
Diluted   EPS ($)	1.07	1.15	1.09	0.57	1.15

 

Now let's take a look at the next page for the Trends and Conclusion. Is this stock an OUTPERFORM, a WAIT AND SEE, or a STAY AWAY?

T = Trends Might Support the Industry

American Express should hold up better than its peers during difficult economic times, right? This is true, but only as long as the stock market and real estate market hold up. If one or both markets are to fall, then American Express clients will take the biggest hit due to heavy investment losses. Therefore, contrary to popular belief, American Express isn't the safest option in the industry if we see a bear market. As for right now, it's the perfect environment for American Express.

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Conclusion

American Express has performed well for several years, and the stock is still trading at a good value. However, it has underperformed its peers over the past several years, and debt and lack of resiliency are concerns.

Fracking Battle in California Could Be Costly

The following video is from Tuesday's Digging for Value, in which host Alison Southwick and Motley Fool energy analysts Joel South and Taylor Muckerman  get to the heart of the biggest stories in energy investing today.

In this segment, Joel takes investors through the legal battle over fracking in the state of California, and tells investors who could benefit from the enormous amount of reserves located in the Monterey shale.

Record oil and natural gas production is revolutionizing the United States' energy position. Finding the right plays while historic amounts of capital expenditures are flooding the industry will pad your investment nest egg. For this reason, the Motley Fool is offering a comprehensive look at three energy companies set to soar during this transformation in the energy industry. To find out which three companies are spreading their wings, check out the special free report, "3 Stocks for the American Energy Bonanza." Don't miss out on this timely opportunity; click here to access your report -- it's absolutely free. 

Does Exxon Mobil Support A Move To All-Time Highs?

With shares of Exxon Mobil (NYSE:XOM) trading around $93, is XOM an OUTPERFORM, WAIT AND SEE or STAY AWAY? Let's analyze the stock with the relevant sections of our CHEAT SHEET investing framework:

T = Trends for a Stock’s Movement

Exxon Mobil is a manufacturer and marketer of commodity petrochemicals, including olefins, aromatics, polyethylene and polypropylene plastics, and a range of specialty products. The company has a number of divisions and affiliates with names that include ExxonMobil, Exxon, Esso or Mobil that operate or market products in the United States and other countries of the world. Exxon Mobil's principal business is energy, involving exploration for and production of crude oil and natural gas; manufacture of petroleum products; and transportation and sale of crude oil, natural gas, and petroleum products. Energy is essential to global growth and day-to-day operations of companies and consumers worldwide. So long as crude oil is a main source of energy, a bellwether like Exxon Mobil will continue to see rising profits well into the future.

T = Technicals on the Stock Chart are Strong

Exxon Mobil stock has seen a consistent uptrend extending back to the Financial Crisis. The stock is now bumping up against long-term resistance where it may pause for a breather. Analyzing the price trend and its strength can be done using key simple moving averages. What are the key moving averages? The 50-day (pink), 100-day (blue), and 200-day (yellow) simple moving averages. As seen in the daily price chart below, Exxon Mobil is trading above its rising key averages which signal neutral to bullish price action in the near-term.

(Source: Thinkorswim)

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

	Implied Volatility (IV)	30-Day IV Percentile	90-Day IV Percentile
Exxon Mobil Options	16.20%	3%	1%

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

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

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

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

E = Earnings Are Mixed Quarter-Over-Quarter

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

	2013 Q1	2012 Q4	2012 Q3	2012 Q2
Earnings Growth (Y-O-Y)	6.00%	11.33%	-1.88%	56.42%
Revenue Growth (Y-O-Y)	-12.29%	-5.29%	-7.68%	1.50%
Earnings Reaction	-1.52%	0.07%	0.47%	1.50%

Exxon Mobil has seen mixed earnings and revenue figures over the last four quarters. From these numbers, the markets have mostly been happy with Exxon Mobil’s recent earnings announcements.

P = Excellent Relative Performance Versus Peers and Sector

How has Exxon Mobil stock done relative to its peers, BP (NYSE:BP), Chevron (NYSE:CVX), Royal Dutch Shell (NYSE:RDSA), and sector?

	Exxon Mobil	BP	Chevron	Royal Dutch Shell	Sector
Year-to-Date Return	7.51%	1.56%	14.29%	-2.89%	5.95%

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

Conclusion

Exxon Mobil is a provider of essential commodity products and services that people and companies around the world utilize on a daily basis. The stock has been steadily trending higher over the last few years but is now trading near a long-term resistance level where it may take a break for a bit. Over the last four quarters, earnings and revenue figures have been mixed which has produced happy investors. Relative to its peers and sector, Exxon Mobil has been a year-to-date performance leader. WAIT AND SEE what Exxon Mobil does this coming quarter.

Guru Stocks at 52-Week Lows

According to GuruFocus list of 52-week lows, these Guru stocks have reached their 52-week lows.

Royal Dutch Shell PLC (RDS.A) Reached the 52-Week Low of $64.92

The prices of Royal Dutch Shell PLC (RDS.A) shares have declined to close to the 52-week low of $64.92, which is 15.3% off the 52-week high of $73.96. Royal Dutch Shell PLC is owned by 20 Gurus we are tracking. Among them, nine have added to their positions during the past quarter. Six reduced their positions.

Royal Dutch Shell PLC has a market cap of $204.37 billion; its shares were traded at around $64.92 with a P/E ratio of 8.60 and P/S ratio of 0.40. The dividend yield of Royal Dutch Shell PLC stocks is 4.60%. Royal Dutch Shell Plc had an annual average earnings growth of 1.1% over the past 10 years.

RDS.A recently reported its second quarter 2013 financial results. Royal Dutch Shell's second quarter 2013 earnings, on a current cost of supplies basis, were $2.4 billion compared with $6.0 billion in the same quarter a year ago.

International Business Machines Corp (IBM) Reached the 52-Week Low of $184.48

The prices of International Business Machines Corp (IBM) shares have declined to close to the 52-week low of $184.48, which is 16.1% off the 52-week high of $215.9. International Business Machines Corp is owned by 32 Gurus we are tracking. Among them, 14 have added to their positions during the past quarter. Eighteen reduced their positions.

International Business Machines Corp has a market cap of $202.09 billion; its shares were traded at around $184.48 with a P/E ratio of 13.10 and P/S ratio of 2.00. The dividend yield of International Business Machines Corp stocks is 2.00%. International Business Machines Corp had an annual average earnings growth of 12.2% over the past 10 years. GuruFocus rated International Business Machines Corp the business predictability rank of 5-star.

IBM recently reported its second quarter 2013 financial results. The company announced diluted EPS of $2.91! , down 13 percent compared to second quarter 2012 financial results.

Mark Hillman bought 4,603 shares in the quarter that ended on 06/30/2013, which is 1.2% of the $72 million portfolio of Hillman Capital Management. Prem Watsa bought 1,200 shares in the quarter that ended on 06/30/2013, which is 0.0092% of the $2.48 billion portfolio of Fairfax Financial Holdings. Meryl Witmer bought 2,700 shares in the quarter that ended on 06/30/2013, which is 0.0028% of the $18.68 billion portfolio of .

Director David N. Farr bought 1,000 shares of IBM stock on 08/27/2013 at the average price of $182.8. David N. Farr owns at least 3,608 shares after this. The price of the stock has increased by 0.92% since.

AT&T Inc. (T) Reached the 52-Week Low of $33.45

The prices of AT&T Inc. (T) shares have declined to close to the 52-week low of $33.45, which is 16.1% off the 52-week high of $39. AT&T Inc. is owned by 17 Gurus we are tracking. Among them, seven have added to their positions during the past quarter. Twelve reduced their positions.

AT&T Inc has a market cap of $177.65 billion; its shares were traded at around $33.45 with a P/E ratio of 25.60 and P/S ratio of 1.50. The dividend yield of AT&T Inc stocks is 5.40%. AT&T Inc. had an annual average earnings growth of 3.8% over the past 10 years.

AT&T recently reported its financial results for the second quarter of 2013. $0.71 diluted EPS compared to $0.66 diluted EPS in the second quarter of 2012, up 7.6 percent. Excluding significant items, EPS was $0.67.

Ruane Cunniff bought 5,650 shares in the quarter that ended on 06/30/2013, which is 0.0013% of the $15.53 billion portfolio of Ruane & Cunniff & Goldfarb. James Barrow owns 31,915,277 shares as of 06/30/2013, which accounts for 1.9% of the $59.52 billion portfolio of Barrow, Hanley, Mewhinney & Strauss.

Director Michael B. Mccallister bought 9,000 shares of T stock on 07/30/2013 at the average price of 35.44. Michael B. Mccallister owns at least 9,290 shares ! after thi! s. The price of the stock has decreased by 5.62% since.

Philip Morris International Inc. (PM) Reached the 52-Week Low of $83.79

The prices of Philip Morris International Inc. (PM) shares have declined to close to the 52-week low of $83.79, which is 15.1% off the 52-week high of $96.73. Philip Morris International Inc. is owned by 31 Gurus we are tracking. Among them, 14 have added to their positions during the past quarter. Nine reduced their positions.

Philip Morris International Inc. has a market cap of $135.62 billion; its shares were traded at around $83.79 with a P/E ratio of 16.20 and P/S ratio of 2.10. The dividend yield of Philip Morris International Inc. stocks is 4.00%. Philip Morris International Inc. had an annual average earnings growth of 14.5% over the past five years.

Joel Greenblatt bought 7,864 shares in the quarter that ended on 06/30/2013, which is 0.029% of the $2.35 billion portfolio of Gotham Capital. Ray Dalio bought 6,000 shares in the quarter that ended on 06/30/2013, which is 0.0046% of the $11.43 billion portfolio of Bridgewater Associates.

Director Sergio Marchionne bought 1,000 shares of PM stock on 08/23/2013 at the average price of 84.42. Sergio Marchionne owns at least 50,687 shares after this. The price of the stock has decreased by 0.75% since.

Simon Property Group Inc. (SPG) Reached the 52-Week Low of $146.10

The prices of Simon Property Group Inc (SPG) shares have declined to close to the 52-week low of $146.10, which is 21.9% off the 52-week high of $182.45. Simon Property Group Inc. is owned by 11 Gurus we are tracking. Among them, five have added to their positions during the past quarter. Five reduced their positions.

Simon Property Group Inc. has a market cap of $45.34 billion; its shares were traded at around $146.10 with a P/E ratio of 37.80 and P/S ratio of 9.00. The dividend yield of Simon Property Group Inc. stocks is 3.10%. Simon Property Group Inc. had an annual average earnings growth of 3.7% ov! er the pa! st 10 years.

Simon Property Group recently announced its second quarter 2013 financial results. Funds from operations were $766.3 million, or $2.11 per diluted share, as compared to $688.8 million, or $1.89 per diluted share, in the prior year period.

NWQ Managers bought 13,900 shares in the quarter that ended on 06/30/2013, which is 0.019% of the $11.49 billion portfolio of NWQ Investment Management Co. Ray Dalio bought 7,142 shares in the quarter that ended on 06/30/2013, which is 0.0099% of the $11.43 billion portfolio of Bridgewater Associates. Ken Heebner owns 635,673 shares as of 06/30/2013, a decrease of 26.57% of from the previous quarter. This position accounts for 2.7% of the $3.78 billion portfolio of Capital Growth Management LP.

Director Larry C. Glasscock bought 177 shares of SPG stock on 08/29/2013 at the average price of $145.82. Larry C. Glasscock owns at least 6,135 shares after this. The price of the stock has increased by 0.19% since.
Related links:GuruFocus list of 52-week lowsThe business predictability rank of 5-starMichael B Mccallister

Have Declining Aluminum Prices Foiled Alcoa?

The past few years have been turbulent for Alcoa (NYSE:AA) and its shareholders. Amid a volatile stock price and declining aluminum prices, can the company achieve stability in the near term? Let's use our Cheat Sheet investing framework to decide whether Alcoa is an OUTPERFORM, WAIT AND SEE, or STAY AWAY.

C = Catalysts for the Stock's Movement

As one of the world's largest aluminum producers, Alcoa's profitability is largely determined by the price of metal it sells. Aluminum has declined in price for two straight years due to oversupply and a reversal of the decade-long bull market in commodities. A three-month buyer of aluminum pays around $1764, roughly 30 percent less than what the metal traded at two years ago. As a result, Alcoa has struggled to achieve stable profitability. Still, the company's-first quarter earnings were impressive and beat estimates in the first quarter.

CEO Klaus Kleinfeld shut down operations at many of the company's mines and refineries in 2012, hoping that an estimated 12 percent reduction in the company's output would reduce aluminum supply and bolster prices. While Alcoa is one of the top three aluminum producers in the world, it is unclear if this strategy will be effective in producing a sustainable impact on its price. To help hedge itself against depressed aluminum prices, Alcoa has invested in higher-performing operations, such as refining alumina, the oxide that creates aluminum, and Bauxite mining. Specifically, the company has expanded its Bauxite mining operation to Brazil and Russia, where it enjoys higher operating margins due to lower energy costs.

Alcoa has focused on growing its engineered products and solutions division as the global aerospace industry continues to thrive. Sales from the this division increased 24 percent, netting $173 million in revenues and operating at a record quarterly EBITDA margin of 20.9 percent. This division should remain profitable for Alcoa as lightweight aluminum parts are in demand for new automobiles and aircraft; but due to slowing economic growth in China, investors should not expect the division to repeat its record-breaking performance next quarter.

D = Debt-to-Equity Ratio is Moderately High

Top Penny Stocks To Own For 2014

Alcoa currently has a debt-to-equity ratio of 0.665. While Alcoa has reduced its leverage by some 25 percent since 2009, the company still utilizes too much debt in its capital structure compared to the basic materials industry average. Moreover, Moody's recently downgraded Alcoa's credit rating to Ba1 on May 29. While the company still has a strong cash balance of $1.9 billion, new debt issuance will be more expensive as a result of the downgrade. Alcoa should use cash flows in the future to reduce some of its debt, as higher leverage increases the company's exposure to fluctuations in the price of aluminum.

T = Technicals are Weak

Alcoa is currently trading at around $7.85, below both its 50-day moving average of $8.35 and its 200-day moving average of $8.57. The stock has been volatile in the past year, and it has recently experienced a downtrend as indicated by its trading below its key moving average. From the graph, we can see that $8 has been a support level for the stock. For the past year, the stock has trended back up after hitting this price. Recently, though, the stock has broken through its $8 support level and could trend lower unless it corrects back to this price again.

T = Trends Support the Industry in Which the Company Operates 

The future looks bright for aluminum demand. Emerging aerospace industries in China and India are consuming components produced by Alcoa's engineered products and solutions division. Additionally, automakers are incorporating more aluminum into their vehicles, as the metal is more lightweight and energy-efficient than steel. Slowing economic growth in China, however, may reduce demand from the Chinese construction industry.

Conclusion

Alcoa's profitability in the short term will continue to hurt from the sub-$1,800 aluminum price. Management has mitigated its exposure to aluminum price fluctuations somewhat by focusing on producing high-value parts for the booming aerospace growth in China and India. With most of the global aluminum business operating at a loss, production will decrease, helping restore supply to the equilibrium. When the downtrend in aluminum prices does reverse, Alcoa is positioned well — its operating margins are much better than Chinese competitors like Aluminum Corporation of China (NYSE:ACH).

4 New Plays For Retirement Investors

Top 5 Low Price Companies To Buy For 2014

With the end of quantitative easing (QE) closer to becoming a reality, interest rates slowly climbing up, bonds bleeding value and the market swinging in all directions, investors are looking everywhere for new places to put their money.

 

Let me say up front that stocks are the best way to build wealth over time, but diversification is important, and "alternative" strategies are certainly worth considering.

Unfortunately, for those hunting that kind of escape route, most alternative assets -- hedge funds, private equity, real estate and anything else you can invest in beyond stocks, bonds and cash -- have generally been reserved for the "elite class" of accredited investors with a lot of wealth, high incomes or both.

The theory is that while a big institutional portfolio can benefit from a touch of exposure to these vehicles, a more concentrated dose can be deadly to a nest egg or other retail-level account if the asset class sours.

But don't worry -- there are still plenty of investable options for the everyday investor. And I've come up with a list of four alternative assets that deserve consideration.

Let's take a look at four possibilities that I like right now.

1. Commodities

Commodities have become popular as an inflation hedge, and you're probably already significantly exposed to the asset class through more conventional instruments like S&P 500 index funds, which typically have 14% to 15% of their assets invested in mining and oil stocks. More direct commodity positions historically required a special brokerage account to buy or sell futures, but in the last few years a series of exchange-traded products have emerged to hold the physical assets for retail and institutional investors alike. The broadest is probably the PowerShares DB Agriculture Index fund (NSYE: DBA), which invests in agricultural commodities, industrial metals, gold and a substantial (60%) weighting to oil, gas and other fuels. On the other extreme, plenty of single-metal and crop funds have hit the market, although so far very few of them are anywhere near as liquid as the underlying commodity markets.

 

2. Real Estate Investment Trusts (REITs)

The REIT is another alternative vehicle that's gone mainstream in recent years. Hundreds of broad-based and specialized real estate companies and ETFs are available, and after a correction a few months ago, many are on the cheap side. Like any other alternative, this should be a seasoning for your portfolio and not the sauce itself. For most retail investors, a stake in an indexed fund like the SPDR Dow Jones REIT (NYSE: RWR) should be more than adequate, or look into the companies that provide services to the REIT industry like HFF (NYSE: HF) and Jones Lang LaSalle (NYSE: JLL).

 

3. Private Equities

Private equities are also no longer an exclusive asset class for ultra-high-net-worth investors. You may not be able to buy into Bain Capital's funds, but you can certainly own shares of elite management companies like Blackstone (NYSE: BX) and Apollo Global Management (NYSE: APO) and share a piece of their behind-the-scenes expertise and financial success.

 

4. Collectibles

Collectibles are also an option, especially if you're looking for an exotic investment. I'm talking about classic cars, vintage wine, rare coins, fine art -- all of which are technically "alternative assets" and offer some of the diversification advantages of their more standardized counterparts. Although, if you're considering collectibles, it is important to note that there's a big difference between investment-grade property and stuff you happen to just find appealing. Evaluating collectibles takes money and deep knowledge of long-term market trends. If you do decide to invest in these alternatives, I recommend you also keep at least some of your entire portfolio in bonds. These are wealth preservation vehicles, not high-performance wealth accumulators. While you shouldn't be fully invested in bonds, it does not hurt to have a few in your portfolio. Just remember to diversify your money to limit risk.

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Sealand Natural Resources Inc. Announced Distribution Agreement with Nature’s Best (OTCBB:SLNR, OTCMKTS:CRWE)

Sealand Natural Resources Inc. (SLNR)

Last Friday, SLNR previously surged (+0.27%) up +0.02 at $7.43 with 425 shares in play at the close (ref. google finance July 26, 2013 – Close).

Sealand Natural Resources Inc. previously reported it has reached a distribution agreement with Nature’s Best.

Nature’s Best, in business since 1969, is the largest privately owned wholesaler-distributor of health and natural food products in the Natural Products Industry. Nature’s Best provides a full-line of Certified Organic, Natural and Specialty products to retail stores throughout the Central, Southern and Western U.S., Alaska, Hawaii and Asia. Nature’s Best specializes in Retail Marketing Support, Web Services, Business Analysis Tools and Sales/Category Management Consulting.

Sealand Natural Resources Inc. (SLNR) 5 day chart:

Top 10 Cheap Companies To Watch For 2014

Crown Equity Holdings Inc. (CRWE)

Together with their digital network of Websites, Crown Equity Holdings Inc. (OTCMKTS:CRWE) (www.crownequityholdings.com ) offers advertising branding and marketing services as a worldwide online multi-media publisher. The company focuses on the distribution of information for the purpose of bringing together a targeted audience and the advertisers that want to reach them.

Last Friday, CRWE previously surged (+19.05%) up +0.0040 at $.0250 with 450 shares in play at the close (ref. google finance July 26, 2013 – Close).

CRWE's daily range was at ($.025 – $.025) currently at $.0250 which would be considered a (+1566.66%) gain above the 52 wk low of $.0015. The stock is up +0.02 ( +1566.67%) since the concerning dates of February 8, 2013 – July 26, 2013. +1566.67% is the 6 month high and rightly so.

June 26, the Company filed 10-Q http://www.otcmarkets.com/edgar/GetFilingHtml?FilingID=9371051, and 10-K http://www.otcmarkets.com/edgar/GetFilingHtml?FilingID=9371048

Crown Equity Holdings Inc. (CRWE ) 5 day chart:

Best Value Companies To Invest In Right Now

On Monday, the Department of Defense awarded 19 contracts, which added up to just under $1.5 billion in total value. The largest award actually went to a private company to pay for "full line food distribution" in Okinawa. But the second-largest contract went to Lockheed Martin (NYSE: LMT  ) .

Lockheed's win, a sole-source, cost-plus-incentive-fee/cost-plus-award-fee/cost-plus-technical-schedule incentive fee contract modification, is worth $295 million to Lockheed's Mission Systems and Training division. That's a fair amount of revenue, but seeing as MST is Lockheed's second least�profitable unit (after Information Systems & Global Solutions�), it's not as good news for Lockheed investors as it might have been.

Under the contract, Lockheed will continue to develop the Aegis Ballistic Missile Defense Baseline, working to move the 5.1 variant of the system through Critical Design Review, and moving Increment-2 through Preliminary Design Review.�Work on these efforts will continue through March 30, 2015.

Best Value Companies To Invest In Right Now: Kootenay Gold Inc. (KTN.V)

Kootenay Silver Inc., an exploration stage company, engages in the acquisition and exploration of mineral properties in North America. The company explores for gold, silver, copper, lead, and zinc ores. It principally has interests in the Promontorio silver mine that covers an area of approximately 79,000 hectares and is located in Sierra Madre region of northwest Mexico. The company was formerly known as Kootenay Gold Inc. and changed its name to Kootenay Silver Inc. in February 2012. Kootenay Silver Inc. is based in Vancouver, Canada.

Best Value Companies To Invest In Right Now: Patterson-UTI Energy Inc.(PTEN)

Patterson-UTI Energy, Inc., through its subsidiaries, provides onshore contract drilling services to oil and natural gas exploration and production companies in the United States and Canada. The company offers pressure pumping services that consist of well stimulation and cementing for completion of new wells and remedial work on existing wells, as well as hydraulic fracturing, nitrogen, cementing, and acid pumping services in Texas and the Appalachian Basin; and contract drilling services primarily in Texas, New Mexico, Oklahoma, Arkansas, Louisiana, Mississippi, Colorado, Utah, Wyoming, Montana, North Dakota, Pennsylvania, West Virginia, Ohio, and western Canada. It also owns and invests in oil and natural gas assets located primarily in Texas and New Mexico. As of December 31, 2011, it had a drilling fleet of 330 marketable land-based drilling rigs. Patterson-UTI Energy, Inc. was founded in 1978 and is headquartered in Houston, Texas.

Top Stocks To Watch Right Now: Universal Corporation(UVV)

Universal Corporation, together with its subsidiaries, operates as a leaf tobacco merchant and processor worldwide. It engages in selecting, procuring, buying, processing, packing, storing, supplying, shipping, and financing leaf tobacco for sale to, or for the account of, manufacturers of consumer tobacco products. The company processes and/or sells flue-cured and burley tobaccos, dark air-cured tobaccos, and oriental tobaccos; and provides value-added services, including blending, chemical and physical testing of tobacco, just-in-time inventory management, and manufacturing reconstituted sheet tobacco. Its flue-cured, burley, and oriental tobaccos are used principally in the manufacture of cigarettes; and dark air-cured tobaccos are used in the manufacture of cigars, pipe tobacco, and smokeless tobacco products. The company was founded in 1888 and is headquartered in Richmond, Virginia.