Top 10 Safest Stocks To Invest In Right Now

It seems that every day a new press release comes out about a big oil or gas discovery, and increasingly these announcements have one thing in common: All the finds are in offshore fields.

As offshore exploration and development increase, oilfield service companies are in high demand. In this video, Fool.com contributor Aimee Duffy talks to Tyler Crowe about how offshore production has affected oilfield service companies, and what investors can expect going forward.

National Oilwell Varco is perhaps the safest investment in the energy sector due to its industry-dominating market share. This company is poised to profit in a big way; its customers are both increasing the number of new drilling rigs and updating aging fleets of offshore rigs. To help determine whether it could be a good fit for your portfolio, you're invited to check out The Motley Fool's premium research report featuring in-depth analysis on whether NOV is a buy today. For instant access to this valuable investor's resource, simply click here now to claim your copy.

Top 10 Safest Stocks To Invest In Right Now: Petroleo Brasileiro S.A.- Petrobras(PBR)

Petroleo Brasileiro S.A. primarily engages in oil and natural gas exploration and production, refining, trade, and transportation businesses. The company?s Exploration and Production segment involves in the exploration, production, development, and production of oil, liquefied natural gas (LNG), and natural gas in Brazil. This segment supplies its products to the refineries in Brazil, as well as sells surplus petroleum and byproducts in domestic and foreign markets. Its Supply segment engages in the refining, logistics, transportation, and trade of oil and oil products; export of ethanol; and extraction and processing of schist, as well as holds interests in companies of the petrochemical sector in Brazil. The Gas and Energy segment involves in the transportation and trade of natural gas produced in or imported into Brazil; transportation and trade of LNG; and generation and trade of electric power. In addition, the segment has interests in natural gas transportation and d istribution companies; and thermoelectric power stations in Brazil, as well engages in fertilizer business. The Distribution segment distributes oil products, ethanol, and compressed natural gas in Brazil. The International segment involves in the exploration and production of oil and gas, as well as in supplying, gas and energy, and distribution operations in the Americas, Africa, Europe, and Asia. Further, the company involves in biofuel production business. Petroleo Brasileiro was founded in 1953 and is based in Rio de Janeiro, Brazil.

Advisors' Opinion:
  • [By Dave Friedman]

    Institutional investors bought 78,663,680 shares and sold 101,125,380 shares, for a net of -22,461,700 shares. This net represents 0.23% of common shares outstanding. The number of shares outstanding is 9,872,826,100. The shares recently traded at $27.61 and the company’s market capitalization is $170,178,700,000.00. About the company: Petroleo Brasileiro S.A. – Petrobras explores for and produces oil and natural gas. The Company refines, markets, and supplies oil products. Petrobras operates oil tankers, distribution pipelines, marine, river and lake terminals, thermal power plants, fertilizer plants, and petrochemical units. The Company operates in South America and elsewhere around the world.

  • [By ETF Authority]  

    Current Price: $47.68 12-month target: $80

    PBR plans to invest $174 billion by 2013 to support the largest oil discovery in 30 years. PetroBras has both the backing of the Brazilian government who invested over $30 billion and the Chinese private investors who have pledged over $20 billion to PBR’s discovery. Brazils government proposed to make PBR the only operator of all new offshore pre-salt oil fields yet to be exploited. PetroBras expects oil production to increased from 2.4 million barrels a day to around 5.7 million barrels a day by 2020. PBR has long-term views and have been expanding renewable energy programs such as solar, biofuel, and energy. Biofuel production is expected to increase 18% by 2013.
  • [By David Sterman]

    Market Value: $173 billion
    Fall from 52-week high: 38%

    This Brazilian oil giant has lost $100 billion in market value since March 2011. That's a lot of dough. The sell-off is the result of a drop in oil prices, slightly stricter government policies regarding oil and gas royalties, and recent moves to issue more stock and debt to help fund business development. (Though the company now vows to stop issuing any more equity.)

    Indeed, this company has been sucking in cash for quite some time, generating a cumulative $40 billion in free cash flow loss in just the past two years. Pretty soon, though, losses will morph into outsized profits when the company's heavy investments to tap massive offshore oil fields finally bear fruit. In 2007, 2008 and again in 2009, Petrobras discovered three new offshore oil fields, known as Tupi, Jupiter, and yet-to-be-named site off of the state of Sao Paolo.

    It's the Tupi energy play that should pique your interest. It's the largest new find of oil since the Kashagan oil field was discovered in Kazakhstan in 2000 and instantly put Brazil's oil reserve base on par with industry giant Norway. Tally up all of its fields, and Petrobas' engineers estimate the country is sitting on more than 12 billion barrels of oil.

    The recent sell-off has put shares of Petrobras deep into bargain territory, trading at just 7.3 times projected 2011 profits and 1.2 times tangible book value.

Top 10 Safest Stocks To Invest In Right Now: Fluor Corporation(FLR)

Fluor Corporation, through its subsidiaries, provides engineering, procurement, construction, maintenance, and project management services worldwide. Its Oil & Gas segment offers design, engineering, procurement, construction, and project management services to upstream oil and gas production, downstream refining, chemicals, and petrochemicals industries. This segment also provides consulting services comprising feasibility studies, process assessment, and project finance structuring and studies. The company?s Industrial & Infrastructure segment offers design, engineering, procurement, and construction services to the transportation, wind power, mining and metals, life sciences, manufacturing, commercial and institutional, telecommunications, microelectronics, and healthcare sectors. Its Government segment provides engineering, construction, logistics support, contingency response, management, and operations services to the United States government focusing on the Departme nt of Energy, the Department of Homeland Security, and the Department of Defense. The company?s Global Services segment offers operations and maintenance, small capital project engineering and execution, site equipment and tool services, industrial fleet services, plant turnaround services, temporary staffing services, and supply chain solutions. Its Power segment provides engineering, procurement, construction, program management, start-up and commissioning, and operations and maintenance services to the gas fueled, solid fueled, plant betterment, renewables, nuclear, and power services markets. The company also offers unionized management and construction services in the United States and Canada. Fluor Corporation was founded in 1912 and is headquartered in Irving, Texas.

Hot Construction Material Companies To Buy Right Now: Goldman Sachs Group Inc.(The)

The Goldman Sachs Group, Inc., together with its subsidiaries, provides investment banking, securities, and investment management services to corporations, financial institutions, governments, and high-net-worth individuals worldwide. Its Investment Banking segment offers financial advisory, including advisory assignments with respect to mergers and acquisitions, divestitures, corporate defense, risk management, restructurings, and spin-offs; and underwriting securities, loans and other financial instruments, and derivative transactions. The company?s Institutional Client Services segment provides client execution activities, such as fixed income, currency, and commodities client execution related to making markets in interest rate products, credit products, mortgages, currencies, and commodities; and equities related to making markets in equity products, as well as commissions and fees from executing and clearing institutional client transactions on stock, options, and fu tures exchanges. This segment also engages in the securities services business providing financing, securities lending, and other prime brokerage services to institutional clients, including hedge funds, mutual funds, pension funds, and foundations. Its Investing and Lending segment invests in debt securities, loans, public and private equity securities, real estate, consolidated investment entities, and power generation facilities. This segment also involves in the origination of loans to provide financing to clients. The company?s Investment Management segment provides investment management services and investment products to institutional and individual clients. This segment also offers wealth advisory services, including portfolio management and financial counseling, and brokerage and other transaction services to high-net-worth individuals and families. In addition, it provides global investment research services. The company was founded in 1869 and is headquartered in New York, New York.

Top 10 Safest Stocks To Invest In Right Now: Under Armour Inc.(UA)

Under Armour, Inc. develops, markets, and distributes performance apparel, footwear, and accessories for men, women, and youth primarily in the United States, Canada, and internationally. It offers products made from moisture-wicking synthetic fabrics designed to regulate body temperature and enhance performance regardless of weather conditions. The company provides its products in three fit types: compression (tight fitting), fitted (athletic cut), and loose (relaxed) extending across the sporting goods, outdoor, and active lifestyle markets. Its footwear offerings comprise football, baseball, lacrosse, softball, and soccer cleats; slides; performance training footwear; and running footwear. The company also provides baseball batting, football, golf, and running gloves, as well as licenses bags, socks, headwear, custom-molded mouth guards, and eyewear that are designed to be used and worn before, during, and after competition. Under Armour sells its products through retai l stores, as well as directly to consumers through its own retail outlets and specialty stores, Website, and catalogs. The company was founded in 1996 and is headquartered in Baltimore, Maryland.

Advisors' Opinion:
  • [By Fernandez]

    Under Armour designs, develops, markets, and distributes performance apparel, footwear, and accessories for men, women, and youth primarily in the United States and Canada.

    You’ve probably seen the company’s “Protect This House” or “Click-Clack” commercials, and probably seen anyone from the weekend warrior to professional sports teams wearing the company’s moisture-wicking synthetic fabrics, which are designed to keep perspiration away from the skin, and regulate body temperature regardless of weather conditions.

    I must admit for full disclosure that I am an Under Armour nut, and own about 20 pairs of their shorts, shirts and shoes.

    I can attest from personal experience as a natural bodybuilder and athlete that the Under Armour apparel are the best workout clothing I have ever worn, and they look pretty darn cool too.

    Now let me make a clear distinction between a great company, and a great stock.

    Up until recently, Under Armour was the former, but not the latter.

    It has now entered into a zone where the valuation metrics, even in the face of a consumer slowdown, is looking more and more attractive.

    In fact, Under Armour just released earnings Monday.

    They were pretty much in line with analyst’s expectations, and then Under Armour slightly lowered their forward guidance for the remainder of 2008 based on those same consumer headwinds.

    The market liked what it heard sending shares up 20% (of course, the overall market was up 10%, so…). Shares have since rebounded further are now up almost 50% from their lows just last week!

    This leads me to my investment thesis in shares of Under Armour.

    I believe that Under Armour represents one of the quintessential brands of this decade when it comes to sports apparel, the way Under Armour’s fiercest rival Nike (NYSE: NKE) dominated the 90’s.

    Until now the valuation of the company was not commensurate with the! projected profit and growth, which I thought were way too high, and still might be, along with certain inventory related problems that the company now seems to be getting a handle on.

    Still, with the spike in share price, along with the uncertainty in the market and overall economy, I feel that we will still be able to purchase shares of this great company at a great price in the near future and that we’re seeing a bit of a short squeeze in shares of Under Armour.

    Why I Like the Company: One of the quintessential brands of this decade; Valuation is reaching reasonable to “cheap” levels depending on direction of consumer market and Under Armour’s stock price; Dedicated and fully invested founder with over 77% voting power via class B shares; Improved business fundamentals via better inventory controls and operational structure, and new product offerings; Further expansion available outside the U.S.; Relatively higher margins than competition

How to Play the E-Commerce Trend in China

Consulting giant PricewaterhouseCoopers has just released a survey of the online shopping habits of more than 11,000 online shoppers in 11 countries. And according to PwC, the No. 1 country for e-commerce today is ... China!

Take a look at some of these numbers:

$211 billion in annual online sales. 58% of shoppers shopping online in the past week. 64% growth in e-commerce revenues over just the past year.

Clearly, China is turning into a big market for online marketing -- but who's best positioned to profit from it? Listen in and find out, as Fool contributor Rich Smith lays out the field of possibilities for you.

Regardless of your short-term view on the Chinese economy, there may be opportunity in Baidu (aka the "Chinese Google"). The Motley Fool's brand-new premium report breaks down the dominant Chinese search provider's strengths and weaknesses. Just click here to access it now.

Most U.S. Stocks Fall as Investors Weigh Data, Stimulus

Here's What This $21 Billion Hedge Fund Company Has Been Buying

Every quarter, many money managers have to disclose what they've bought and sold, via "13F" filings. Their latest moves can shine a bright light on smart stock picks.

Today, let's look at SAC Capital Advisors, run by Steven Cohen. SAC is one of the biggest hedge fund companies around, with a reportable stock portfolio totaling $20.7 billion in value as of March 31, 2013. A company doesn't generally grow that large without performing well, and indeed, Cohen has reportedly averaged returns of roughly 30% annually over two decades.

The company has been in the news a lot lately, though, due to an insider-trading scandal. Cohen recently received a subpoena to testify before a grand jury, and is reportedly considering closing his operations to outside investors as part of a proposed deal. The statute of limitations on this case may bring things to a close by the end of July, so we can expect more clarity by then.

Interesting developments
So what does SAC Capital's latest quarterly 13F filing tell us? Here are a few interesting details:

The biggest new holdings are Chesapeake Energy puts, and shares of Discovery Communications. Other new holdings of interest include Halcon Resources (NYSE: HK  ) , and Thompson Creek Metals (NYSE: TC  ) . Oil and gas company Halcon, operating in the promising Bakken region, as well as Texas's productive Eagle Ford shale region, among others, is expected to grow by 30% annually over the coming years. It recently reported 2012 net daily production 128% higher than year-ago levels, and proven reserves up 417%. Halcon was recently one of my colleague Joel South's top two energy holdings, and analysts at Stifel recently upped its rating from Hold to Buy.

Thompson Creek Metals (NYSE: TC  ) has been challenged by low prices for its primary product, molybdenum, and a costly build-out of its Mt. Milligan copper and gold mine. The mine is due to open soon, and should be productive, helping diversify Thompson Creek's operations. Some maintain high hopes for the company's future.

Among holdings in which SAC Capital Advisors increased its stake was Atmel (NASDAQ: ATML  )  SAC reduced its stake in companies such as PNC Financial Services, and Akamai Technologies. Atmel, which makes touchscreen controllers, is sitting near a 52-week high, despite posting shrinking revenue and earnings lately. The company is cutting costs to boost profit margins, and is optimistic, seeing improving business conditions and a healthier backlog.

Finally, SAC Capital's biggest closed positions included Coach and Dover. Other closed positions of interest include Exelixis (NASDAQ: EXEL  ) and, also, Tronox Ltd. (NYSE: TROX  ) . Biotech company Exelixis recently reported non-blowout early sales of its thyroid cancer drug, Cometriq. Some are waiting to see if the drug gets approved to treat prostate cancer, too, and the company is looking at treating as many as nine different conditions with it, such as bone tumors. On the other hand, Cometriq is expensive, and the company's debt has been growing, along with its share count.

Tronox is the world's largest fully integrated titanium dioxide producer, supplying paint companies, paper companies, and more. It emerged from bankruptcy in 2011 as a stronger company, and reinstituted its generous dividend in 2012, recently yielding 4.4%. Falling prices for titanium dioxide have hurt, but a recovering housing market will help. The company faces competition, but remains poised to benefit from an industry turnaround.

We should never blindly copy any investor's moves, no matter how talented the investor. But it can be useful to keep an eye on what smart folks are doing. Therefore, 13-F forms can be great places to find intriguing candidates for our portfolios.

Energy investors would be hard-pressed to find another company trading at a deeper discount than Chesapeake Energy. Its share price depreciated after negative news surfaced concerning the company's management and spiraling debt picture. While the debt issues still persist, giant steps have been taken to help mitigate the problems. To learn more about Chesapeake and its enormous potential, you're invited to check out The Motley Fool's brand-new premium report on the company. Simply click here now to access your copy.

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

Why Bank of America Stumbled Before the Week's Finish Line

Why Infoblox Shares Popped

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 Infoblox (NYSE: BLOX  ) have popped today by as much as 18% after the company reported earnings.

So what: Revenue in the fiscal third quarter came in at a record $58 million, topping the Street's $56 million forecast. Non-GAAP earnings per share totaled $0.11, also ahead of the $0.06-per-share adjusted profit that investors were expecting. CEO Robert Thomas said the company's value proposition -- helping networks become more automated and secure -- is driving its outperformance.

Now what: Next quarter should see sales of $58 million to $59 million, with adjusted earnings per share of $0.08 to $0.09. That guidance is also better than expected. Full-year revenue outlook calls for revenue in the range of $220 million to $221 million. Needham has reiterated its buy rating while boosting its price target to $28.

Interested in more info on Infoblox? Add it to your watchlist by clicking here.

It's incredible to think just how much of our digital and technological lives are almost entirely shaped and molded by just a handful of companies. Find out "Who Will Win the War Between the 5 Biggest Tech Stocks?" in The Motley Fool's latest free report, which details the knock-down, drag-out battle being waged by the five kings of tech. Click here to keep reading.

GasLog Increases Sales but Misses Revenue Estimate

GasLog (NYSE: GLOG  ) reported earnings on May 15. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), GasLog missed estimates on revenues and met expectations on earnings per share.

Compared to the prior-year quarter, revenue grew significantly. Non-GAAP earnings per share dropped. GAAP earnings per share expanded significantly.

Gross margins dropped, operating margins shrank, net margins grew.

Revenue details
GasLog logged revenue of $21.8 million. The seven analysts polled by S&P Capital IQ hoped for a top line of $22.3 million on the same basis. GAAP reported sales were 31% higher than the prior-year quarter's $16.6 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.05. The 10 earnings estimates compiled by S&P Capital IQ averaged $0.05 per share. Non-GAAP EPS of $0.05 for Q1 were 17% lower than the prior-year quarter's $0.06 per share. GAAP EPS of $0.09 for Q1 were 80% higher than the prior-year quarter's $0.05 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 77.6%, 140 basis points worse than the prior-year quarter. Operating margin was 27.8%, 50 basis points worse than the prior-year quarter. Net margin was 27.1%, much better than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $33.8 million. On the bottom line, the average EPS estimate is $0.11.

Next year's average estimate for revenue is $145.2 million. The average EPS estimate is $0.58.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 23 members out of 27 rating the stock outperform, and four members rating it underperform. Among four CAPS All-Star picks (recommendations by the highest-ranked CAPS members), four give GasLog a green thumbs-up, and give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on GasLog is buy, with an average price target of $16.38.

Can your portfolio provide you with enough income to last through retirement? You'll need more than GasLog. Learn how to maximize your investment income and "Secure Your Future With 9 Rock-Solid Dividend Stocks." Click here for instant access to this free report.

Add GasLog to My Watchlist.

Why Apple's Upcoming Macs Will Go to Waste

Next month, Apple  (NASDAQ: AAPL  ) is expected to unveil upgraded Macs, most likely in the form of MacBooks. The company will likely bump internal specs with no major external changes. Among these improvements may be the inclusion of Broadcom's (NASDAQ: BRCM  ) newest Wi-Fi combo chips. Thanks to these chips, the new models may support the newest Wi-Fi standard, 802.11ac, that offers theoretical maximum speeds of 1,000 megabits per second, or Mbps.

That speed capability will go to waste, as the average American's Internet speed is approximately 6 Mbps, according to Google's (NASDAQ: GOOG  ) estimates. The search giant's Fiber service is a gigabit service that could reach those theoretical maximums. Google is catalyzing the industry with its disruptive threat, and eventually users may be able to tap into gigabit Wi-Fi.

In the video below, Fool contributor Evan Niu, CFA, explains why the move may not do users any good for now.

There's no doubt that Apple is at the center of technology's largest revolution ever, and that longtime shareholders have been handsomely rewarded with over 1,000% gains. However, there is a debate raging as to whether Apple remains a buy. The Motley Fool's senior technology analyst and managing bureau chief, Eric Bleeker, is prepared to fill you in on reasons to buy and reasons to sell Apple, and what opportunities are left for the company (and your portfolio) going forward. To get instant access to his latest thinking on Apple, simply click here now.

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

Is That a Light at the End of the Tunnel for Best Buy?

Surprise, surprise. After the dust settled, Best Buy (NYSE: BBY  ) accomplished what many assumed was impossible: It beat earnings estimates, and handily. For a company that's been through what Best Buy's been through the past year -- a fight over ownership with founder Richard Schulze, a new CEO last fall, and weak consumer demand for electronics -- the better-than-expected net income from operations results should have had investors cheering. But with Best Buy shares down 5%, clearly there's more to this picture.

The bright spots
When Best Buy CEO Hubert Joly committed to matching online prices with the likes of Amazon and Wal-Mart, he stepped into the ring with the big boys. Wal-Mart grew its online sales more than 30% last quarter in a concerted effort to drive this area of its business. And of course, Amazon remains the top online retailer in the world, selling over $13 billion in online products alone last quarter.

To Best Buy's credit, domestic online sales grew 16% compared to fiscal first quarter 2013. That pales in comparison to Amazon and Wal-Mart, but is certainly a step in the right direction. While revenues dropped to $7.98 billion – a decline of 9.6% from last year – there are a couple of caveats worth noting. One, the first quarter of last year had an additional week, which added an estimated $660 million to the top line. If you remove the extra week, revenue declined a more tolerable 2.2%. Also, after shuttering 49 large-format stores, it stands to reason that gross revenues would be squeezed.

Similar to Best Buy's drop in revenue, its 1.1% same-store sales decline also comes with an asterisk. Of the drop in same-store sales, Best Buy estimates 0.80% of the 1.1% is attributable to the Super Bowl -- historically a good week for electronics sales -- landing in its fourth quarter instead of in the first quarter as it did last year. A stretch? Maybe, but these seem like legitimate arguments rather than the usual CEO-speak after a tough quarter.

Joly's continued cost-cutting saved Best Buy another $175 million in fiscal first quarter, on top of $150 million in expenses cut last quarter. The agreement reached with Samsung to put up its "Experience Shops" inside Best Buy stores could prove profitable as the mobile computing king continues to generate ridiculously solid sales results.

It has been confirmed that it is getting out of its European deal with Carphone Warehouse, and this a good move for Best Buy as it continues cost-cutting initiatives and focuses on its core business. Best Buy will receive about $775 million, more than 80% in cash and the balance in Carphone Warehouse stock, less $45 million to settle outstanding obligations.

The not-so-bright spots
Matching the prices of online retailers like Amazon as well as Wal-Mart's website, and making those price cuts permanent, is hurting margins. This year's fiscal first-quarter gross profit margins of 23.1% is down from the year-ago period's 24.9%, and that's likely to get worse, not better.

As Best Buy's EVP, CAO, and CFO Sharon McCollam put it, "We believe that the ongoing investment in price competitiveness that contributed to our gross profit and EPS declines in the first quarter will continue into the second quarter. Additionally, disruptions caused by the physical deployment of the Samsung Experience Shops and the optimization of our retail floor space are expected to have operational impacts during the second quarter."

A question for Best Buy investors
The margins are particularly painful when combined with a drop in revenue -- Best Buy can't afford both as it attempts to claw its way back to relevancy. So how does Joly walk the line between cranking up revenue and maintaining even so-so margins, all while fighting off Amazon and Wal-Mart (among others)? Best Buy can offset margin pressures by continuing to aggressively cut expenses, but even that may not be enough, at least in the foreseeable future.

It's been a great run for Best Buy shareholders, who've enjoyed a year-to-date return of over 110%. If you're a new investor, don't expect much in the near-term; the obstacles are many. But give Joly his due: His proactive steps to sever the Carphone relationship, cut overhead, and ramp up online sales may still shed light on the Best Buy tunnel yet.

The Motley Fool has released a premium research report detailing the opportunities -- and the risks -- in store for Best Buy. Simply click here now to claim your comprehensive report today.

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Wall Street Recovers From Early Losses

The rollercoaster ride continued on Wall Street today, but stocks swung back near breakeven in late trading to save what could have been a very bad day. In early trading the Dow Jones Industrial Average (DJINDICES: ^DJI  ) dropped 127 points on the back of a big overnight drop in the Japanese stock market and a report showing contraction in China's manufacturing. HSBC said preliminary data for its Purchasing Managers' Index in China showed a reading of 49.6, which signals slight contraction and continues a streak of falling numbers. But by the last hour of the trading session, Wall Street had moved on from problems in Japan and China, and the Dow was down just 0.06%, while the S&P 500 (SNPINDEX: ^GSPC  ) had fallen 0.25%.  

The big headline of the day was Hewlett-Packard's (NYSE: HPQ  ) surprise earnings beat and the stock's 16.4% jump today. After the market closed last night the company reported adjusted earnings per share of $0.87 and a 10% decline in fiscal second-quarter revenue to $27.6 billion. Both were enough to beat estimates, and the $0.06 earnings beat was the big driver of the stock's move today. Better-than-expected earnings from HP are great, but let's not forget that every operating segment is in decline, and profit only beat expectations by virtue of massive cost-cutting efforts. 

The massive wave of mobile computing has done much to unseat the major players in the PC market, including venerable technology names like Hewlett-Packard. However, HP is rapidly shifting its strategy under the leadership of CEO Meg Whitman. But does this make HP one of the least-appreciated turnaround stories on the market, or is this a minor detour on its road to irrelevance? The Motley Fool's technology analyst details exactly what investors need to know about HP in our new premium research report. Just click here now to get your copy today.

Boeing (NYSE: BA  ) is another big winner today, climbing 1.7%. The stock was upgraded by Bank of America today and given a $120 price target, indicating a 20% upside. More importantly, Chinese regulators cleared the 787 Dreamliner for local flights, opening up another region for the troubled aircraft. This doesn't mean international flights are approved yet, but Chinese airlines are expecting that approval to come in the next few months. 

Finally, General Electric (NYSE: GE  ) was among the Dow's losers today, falling 0.7%. At a conference yesterday, CEO Jeffrey Immelt suggested that GE could spin off part of GE Capital in an effort to reduce the company's exposure to the financial markets. GE Capital recently announced that it would pay its parent a $6.5 billion dividend, freeing up more money and reducing the finance business, but that could just be the start. It was GE Capital that got GE into trouble during the financial crisis, so moves to return to GE's manufacturing roots should be seen as a good sign.  

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

Freeport-McMoRan to Pay Supplemental Dividend if Plains Deal Closes

Gold and copper miner Freeport-McMoRan (NYSE: FCX  ) will pay its shareholders a supplemental dividend of $1.00 per share upon the completion of its acquisition of Plains Exploration & Production (NYSE: PXP  ) , the company announced today. The supplemental payout will be in addition to the miner's regular quarterly dividend of $0.3125 per share.

Plains Exploration shareholders are set to vote on the $6.9 billion cash and stock deal today.

Additionally, Freeport's board of directors said they would pay to shareholders of Plains Exploration a $3.00-per-share cash dividend upon completion of the transaction.

Freeport Chairman James R. Moffett and President and CEO Richard C. Adkerson said in a joint statement:  "This dividend in no way changes our commitment to reduce debt on completion of the pending acquisitions. The planned asset sales, combined with our significant cash flows and disciplined approach to investing in capital projects, will enable us to meet our target of reducing debt to $12 billion over a three year period."

Assuming the acquisition is completed, Freeport plans to also complete $1.5 billion in asset sales from the combined company as a means of reducing its capital spending plans.

The supplemental dividend, which is conditional on the closing of the transaction, will cost Freeport $1 billion and will be the 11th supplemental dividend paid since 2004.

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Shorts Are Piling Into These Stocks. Should You Be Worried?

The best thing about the stock market is that you can make money in either direction. Historically, stock indexes have tended to trend up over the long term. But when you look at individual stocks, you'll find plenty that lose money over the long haul. According to hedge fund institution Blackstar Funds, even with dividends included, between 1983 and 2006, 64% of stocks underperformed the Russell 3000, a broad-scope market index.

A large influx of short-sellers shouldn't be a condemning factor to any company, but it could be a red flag from traders that something may not be as cut-and-dried as it appears. Let's look at three companies that have seen a rapid increase in the number of shares sold short and see whether traders are blowing smoke or if their worry has some merit.

Company

Short Increase April 15 to April 30

Short Shares as a % of Float

salesforce.com (NYSE: CRM  )

276.1%

9.2%

Caterpillar (NYSE: CAT  )

78.5%

4.5%

Bally Technologies (NYSE: BYI  )

52.1%

22%

Source: The Wall Street Journal.

Is this valuation in the clouds?
I'm very much looking forward to the day when cloud-computing companies don't present many of the same concerns endemic in the late 1990s and early 2000s of Internet companies.

Salesforce.com, in its most recent quarter, delivered incredible growth yet again: Revenue jumped 32% to $835 million as businesses continue their transition into the cloud in both social and mobile markets. Furthermore, Salesforce's revenue stream is almost entirely recurring, meaning there's safety in its quarterly cash flow statements.

On the flip side, Salesforce also presents catch-22s such as needing to expand rapidly in order to secure new clients. The higher-than-normal expenses related to customer capture have constrained Salesforce's profit potential and place the company at a frothy 74 times next year's EPS projections. The other factor to consider here is that the law of big numbers says Salesforce's growth rate is going to slow. In fiscal 2013, revenue grew by 32%. In the upcoming year, Salesforce is projecting sales growth of just 27% to 28% -- and who knows how that might be affected by the sequester or the Patient Protection and Affordable Care Act, which have caused many businesses to remain cautious in their spending habits.

While I have a hard time denying that Salesforce is a cloud juggernaut, I have an easy time understanding why short-sellers are skeptical with its astronomical valuation. I do believe the short-sellers may have some room to be pessimistic over the near term until Salesforce's bottom line catches up to its current market value.

Will weak metal prices prove short-sellers right?
Caterpillar might be a monster among its peers with regard to manufacturing heavy machinery, but it's acted more like a kitty-cat in recent months.

In September, Caterpillar lowered its 2015 EPS outlook to a range of $12 to $18 from a previous outlook of $15 to $20 because many global miners had reduced their capital expenditures forecast. I'm certain most capex budgets have become even sketchier with gold prices dipping $200 per ounce over just the past couple of weeks. Yet, Caterpillar -- in spite of its 2013 outlook being cut in the first quarter -- and its heavy-manufacturing peer Deere (NYSE: DE  )  both look poised to take advantage of any strength overseas.

While certain aspects of mining may struggle to find their footing until global stock markets stop their perpetual uptrends, there are ample growth opportunities in overseas markets for Caterpillar and Deere's construction equipment -- especially in Asia and South America. Sales growth in China, while slower than expected for Caterpillar, did point to lower machine inventory and a steady trend of outperformance to many other overseas markets. For Deere, sales outside the U.S. rose by 9% in its first-quarter results reported last week.

We're certainly seeing cautious outlooks for both companies, but with the share price of both having reflected that uncertainty, I feel now could be the time to look for an entry point; and not as a short-sale!

The smartest way to play online gaming
Bringing in $36 billion in revenue, the online gaming industry is certainly the talk of the town, with Bally Technologies and International Game Technology (NYSE: IGT  ) being the first two companies to be awarded online gaming licenses in the U.S. last year. Let me make it clear that this doesn't clear the way for the legalization of online gaming in the U.S., but it's certainly a nice first step in the process.

Short-sellers aren't sold on Bally's success, though. With many hurdles left to leap, online gaming will remain just a pipe dream domestically and Bally's will remain reliant on the gaming replacement cycle of casinos in order to beef up its bottom line. I, however, think Bally's and IGT are the two smartest ways you could possibly play an online gaming legalization in the U.S.

If you think about it, trying to select which domestic casinos would benefit the most is like picking a needle out of a haystack. Some, like Sheldon Adelson, CEO of Las Vegas Sands, have made it very clear that they aren't interested in potential online gaming revenue. Many others, however, have positioned themselves to take advantage of Americans' insatiable urge to gamble if and when online gaming is approved.

That's where Bally's and IGT come in. As pure software and programming plays, they'll get the business of practically every casino because... ding, ding, ding -- you got it... they have the licenses! Even if online gaming is still five years away, these two make for an intriguing cash flow play as new and old casinos are buying and/or replacing old machines constantly.

In short (no pun intended), this isn't a stock I'd bet against.

Foolish roundup
This week it's all about asking yourself, "Does this make sense?" In the case of Caterpillar and Bally Technologies, a trend toward overseas industrialization and the legalization of online gaming seems inevitable, so both companies appear fairly valued, if not undervalued. As for Salesforce, with its growth rate slowing and the company needing to spend vigorously on its own expansion, I'd probably keep to the sidelines and let the short-sellers have their way over the interim.

What's your take on these three stocks? Do short-sellers have these stocks pegged, or are they blowing smoke? Share your thoughts in the comments section below.

Can Caterpillar transform into a butterfly and soar once again?
Caterpillar is the market share leader in an industry in which size matters, and its quality products, extensive service network, and unparalleled brand strength combine to give it solid competitive advantages. Read all about Caterpillar's strengths and weaknesses in The Motley Fool's premium report. Just click here to access it now.

Top 10 Clean Energy Companies To Own In Right Now

Foolish investors have been longtime fans of first-movers in a new space, and Clean Energy Fuels (NASDAQ: CLNE  ) has certainly been in on the ground floor in the effort to build out a national network of natural gas fueling stations. Now, the challenge for it will be to outpace some of its newer, larger�competitors.

Royal Dutch Shell (NYSE: RDS-A  ) announced recently that it will be partnering with Travel Centers of America (NYSE: TA  ) to build out a network of natural gas fueling stations at Travel Centers of America's highway rest stations across the country. In this video, Fool.com contributor Tyler Crowe takes a look at the leading companies in this natural gas station rush, and sees one company that could benefit from this competition.

Top 10 Clean Energy Companies To Own In Right Now: United Business Media plc ord(UBM.L)

UBM plc engages in the provision of data, media and business to business (B2B) communications, and marketing services worldwide. The company operates in five segments: Events, PR Newswire, Data Services, Marketing Services-Online, and Marketing Services-Print. The Events segment organizes industry exhibitions and conventions, conferences, forums, fairs, tradeshows, and other live in person events that enable communities to do business. The PR Newswire segment offers communications products and services to professionals working in marketing, public relations, corporate communications, or investor relations roles in businesses, government, and other non-commercial organizations. This segment also distributes its clients? messages and information. The Data Services segment provides data and information products, including data-based workflow products, intellectual property consultancy and analytical services, and sales lead generation programs that support professionals. The Marketing Services-Online segment offers Website sponsorships and banner advertising, as well as online directory products. The Marketing Services-Print segment publishes magazines and trade press to specialist markets. The company markets its products and services to professional and commercial communities. The company was formerly known as United Business Media Limited and changed its name to UBM plc in May 2011. UBM plc was founded in 1918 and is headquartered in Dublin, Ireland.

Top 10 Clean Energy Companies To Own In Right Now: Pininfarina(PNNI.MI)

Pininfarina SpA engages in the provision of design, product, and process engineering services; and manufacture of vehicles. The company also engages in the product and interior design activities, as well as in the extra-automotive means of transportation. It serves automotive, railways, bus, heavy truck, nautical, and aeronautical industries. The company operates in Italy, Germany, Sweden, Morocco, and China. Pininfarina was founded in 1930 and is headquartered in Cambiano, Italy.

Top 5 Computer Hardware Stocks To Watch For 2014: Stamford Land Corporation Ltd (H07.SI)

Stamford Land Corporation Ltd, an investment holding company, owns and operates a portfolio of luxury hotels in Australia, Singapore, and New Zealand. It operates hotels and resorts under the Stamford Grand North Ryde, Sir Stamford Circular Quay, Stamford Plaza Sydney Airport, Stamford Grand Adelaide, Stamford Plaza Adelaide, Stamford Plaza Melbourne, Stamford Plaza Brisbane, and Stamford Plaza Auckland names. It also engages in the investment, construction, development, and trading of residential apartments, and retail and commercial buildings. In addition, the company is involved in providing travel agency services; importing, exporting, and dealing in wall coverings, interior decorations, and furnishing products; and offering management and consultancy services. Stamford Land Corporation Ltd is based in Singapore.

Top 10 Clean Energy Companies To Own In Right Now: Hudson Technologies Inc.(HDSN)

Hudson Technologies, Inc., through its subsidiary, Hudson Technologies Company, provides refrigerant services and solutions in the refrigeration industry primarily in the United States. Its products and services include refrigerant sales; refrigerant management services consisting primarily of reclamation of refrigerants; RefrigerantSide services comprising system decontamination to remove moisture, oils, and other contaminants. The RefrigerantSide services also include predictive and diagnostic services for industrial and commercial refrigeration applications, which are designed to predict potential catastrophic problems and identify inefficiencies in an operating system. The company?s products and services are primarily used in commercial air conditioning, industrial processing, and refrigeration systems. It sells reclaimed and new refrigerants to customers in air conditioning and refrigeration industry. The company serves commercial, industrial, and government customer s, as well as refrigerant wholesalers, distributors, contractors, and refrigeration equipment manufacturers; and customers in petrochemical, pharmaceutical, industrial power, manufacturing, commercial facility, and property management and maritime industries. Hudson Technologies, Inc. has a strategic alliance with The Linde Group to market its service offering outside the United States. The company was founded in 1991 and is headquartered in Pearl River, New York.

Top 10 Clean Energy Companies To Own In Right Now: Allied Motion Technologies Inc.(AMOT)

Allied Motion Technologies Inc. designs, manufactures, and sells motors, electronic motion controls, and gearing and optical encoder products. It offers brushless and brush direct current (DC) motors, drives, and control electronics comprising servo motors, frameless motors, torque motors, and high speed brushless DC motors for semiconductor manufacturing, industrial automation, medical equipment, military, and aerospace markets. The company also provides high resolution encoders, precision high resolution servo motors, and integrated motor/encoder assemblies to the aerospace and defense, telecommunications, semiconductor, and scanning equipment manufacturing markets. In addition, it offers fractional horsepower permanent magnet DC and brushless DC motors for original equipment applications in various markets, such as trucks, buses, boats, RV's, off-road vehicles, health, fitness, medical, and industrial equipment; and fractional and integral horsepower geared motion solut ions to original equipment manufacturers (OEMs) in the commercial and industrial equipment, healthcare, recreation, and non-automotive transportation markets. Further, the company provides motion control technology comprising integrated power electronics, digital controls, and network communications for motor control and power conversion; reduction gearboxes for dialysis equipment, industrial ink jet printers, cash dispensers, bar code readers, laser scanning equipment, fuel injection systems, HVAC actuators, waste water treatment, dosing systems, textile manufacturing, document handling equipment, and studio television cameras; and drive electronics, software, and mechanical processes to OEM customers in industrial, commercial, and medical applications. It distributes its products through its sales force, independent sales representatives, agents, and distributors primarily in the United States, Canada, Europe, and Asia. The company was founded in 1962 and is headquartered in Englewood, Colorado.

Top 10 Clean Energy Companies To Own In Right Now: Clean Wind Energy Tower Inc (CWET.PK)

Clean Wind Energy Tower, Inc. (Clean Wind), incorporated on January 22, 1962, focuses on becoming a provider of green energy. As of December 31, 2011, Clean Wind had designed and was preparing to develop, and construct Downdraft Towers that use non-toxic elements to generate electricity and clean water by integrating and synthesizing a range of proven, as well as emerging technologies.

The Downdraft Tower is a hollow cylinder with a water spray system at the top. Pumps deliver water to the top of the Downdraft Tower to spray a fine mist across the entire opening. The water evaporates and cools the hot dry air at the top. The cooled air is denser and heavier than the outside warmer air and falls through the cylinder at speeds up to and in excess of 50 miles per hour (mph), driving the turbines located at the base of the structure. The turbines power generators to produce electricity.

The Company competes with Southern California Edison Company, Pacific Gas & Electric Company, San Diego Gas & Electric Company, Arizona Public Service Company, Florida Power & Light Company, enXco, Inc., PPM Energy, Inc. and UNS.

Top 10 Clean Energy Companies To Own In Right Now: Fonar Corporation(FONR)

FONAR Corporation engages in the research, development, production, marketing, and service of magnetic resonance imaging (MRI) scanners for the detection and diagnosis of human diseases. It provides Upright Multi-positional MRI scanners, which allow patients to be scanned in a weight-bearing condition, such as standing, sitting, or bending in any position that causes symptoms; and FONAR 360 MRI scanner, a diagnostic scanner. The company, through its wholly owned subsidiary, Health Management Corporation of America, also offers management services to imaging facilities, including development, administration, and leasing of office space, facilities, and medical equipment; provision of supplies; staffing, training, and supervision of non-medical personnel; legal services; accounting, billing, and collection; and the development and implementation of practice growth and marketing strategies. It serves private diagnostic imaging centers and hospitals. As of June 30, 2011, the c ompany managed 10 diagnostic imaging facilities located in the states of New York and Florida. FONAR Corporation was founded in 1978 and is based in Melville, New York.

Top 10 Clean Energy Companies To Own In Right Now: Bloomsbury Pubshng(BMY.L)

Bloomsbury Publishing Plc operates as an independent publishing house. It engages in publishing books; and developing electronic databases. The company publishes media and electronic reference materials, children and educational books, fiction and non-fiction books, audio books, dictionaries, ornithology books, nautical books, photocopiable books, and literary books, as well as provides public library online service. It also publishes research in archaeology, classics, ancient history, and ancient philosophy, as well as reference works. In addition, the company involves in the sale of publishing and distribution rights, sponsorship, and database contracts. Bloomsbury Publishing Plc sells its products in the United Kingdom, North America, Continental Europe, and Australia. The company was founded in 1986 and is based in London, the United Kingdom.

Top 10 Clean Energy Companies To Own In Right Now: Mobile TeleSystems (MBT)

Mobile TeleSystems OJSC, together with its subsidiaries, provides telecommunications services primarily in the Russian Federation, Ukraine, Uzbekistan, Armenia, and Belarus. The company provides a range of mobile and fixed line voice and data telecommunications services, including transmission, broadband, pay-TV, and various value-added services; and sells equipment and accessories. It also offers network access services, including mobile cellular voice and data communication services; automatic roaming services; GPRS and Internet access services; and 3G technology. In addition, the company�s services include the design, construction, and installation of local voice and data networks capable of interconnecting with fixed line operators; installation and maintenance of cellular payphones; lease of digital communication channels; and provision of access to open computer databases and data networks, including the Internet, as well as video conferencing, and fixed, local, and long-distance telecommunications services. Its value-added services comprise call divert/forwarding, caller ID and anti-caller ID display, conference calling, WiFi, GPRS, intelligent call assistant, APN remote access point, fixed mobile convergence, enhanced data rates for GSM Evolution, call barring, SMS, mobile office, voicemail, mobile banking, wireless application protocol, MTS-Connect, SIM-browser, point-to-point transfer, unstructured supplementary services data, downlink packet access, mobile TV, call waiting, MMS, ring tones, missed call alert, itemization of monthly bills, information and directory, international access, WEB and WAP portal, customer care system, ring back tone, collect call, and location-based services. As of December 31, 2011, the company had a mobile subscriber base of approximately 101.14 million. It has a strategic partnership with Vodafone. The company was founded in 1993 and is headquartered in Moscow, the Russian Federation.

Top 10 Clean Energy Companies To Own In Right Now: Safety Insurance Group Inc.(SAFT)

Safety Insurance Group, Inc., through its subsidiaries, provides private passenger automobile insurance products primarily in Massachusetts and New Hampshire. The company?s private passenger automobile policies offer coverage for bodily injury and property damage to others, no-fault personal injury coverage for the insured/insured?s car occupants, and physical damage coverage for an insured?s own vehicle for collision or other perils. It also provides commercial automobile policies that offer insurance for commercial vehicles used for business purposes, including private passenger-type vehicles, trucks, tractors and trailers, insure individual vehicles, and commercial fleets; and homeowners policies, which provide coverage for losses to a dwelling and its contents from various perils, and coverage for liability to others arising from ownership or occupancy. It writes policies on homes, condominiums, and apartments. In addition, the company offers business owners policie s that cover apartments and residential condominiums, limited cooking restaurants, office condominiums, processing and services businesses, special trade contractors, and wholesaling businesses. Further, it provides commercial package policies, which offer property, general liability, crime, and inland marine insurance for business enterprises; personal umbrella policies that provide personal excess liability coverage over and above the limits of individual automobile, watercraft, and homeowner?s insurance policies; and commercial umbrella policies to clients for whom the company underwrites commercial automobile and business owner policies. Additionally, the company underwrites dwelling fire insurance, inland marine coverage, and watercraft coverage. Safety Insurance Group, Inc. was founded in 1979 and is headquartered in Boston, Massachusetts.

Biotech Investing for Beginners

Huge fortunes are won and lost in the world of biotech nearly every week. For those new to this world, it can appear both alluring and scary. Biotech investing for beginners isn't for the fainthearted, but the potential rewards are great. Here are three important things to keep in mind if you're contemplating trying out the clinical-stage biotech waters.

1. Flimsy financials
Throw revenue growth, earnings per share, valuation multiples, and pretty much every other financial figure out the window if you're looking to invest in an up-and-coming biotech. These companies typically won't have any revenue or earnings of significance.

For example, Keryx Biopharmaceuticals (NASDAQ: KERX  ) reported no revenue for 2012. Not a dime. The company lost $22.7 million last year and even more the year before that. However, those financial results really aren't important at this point.

Biotech investors should focus on cash, though -- in particular, the burn rate for that cash. A company can have a promising product, but that promise fizzles without enough cash to complete clinical trials.

During the first quarter of 2013, Keryx showed a burn rate of nearly $2.2 million. This rate is calculated by adding capital expenditures to the company's operating cash flow. At the end of March, Keryx showed cash and cash equivalents of more than $87 million thanks largely to a secondary stock offering earlier this year. This means that the company is in solid shape from a cash standpoint. That's not always the case with biotechs.

2. Regulatory roulette
Another key investing concept for beginners to understand is that biotechs live or die on regulatory decisions. The road to approval for a drug is a long and winding one.

Dynavax (NASDAQ: DVAX  ) is a good case in point. The company's Heplisav hepatitis B vaccine looked good in clinical trials when compared to the leading vaccine on the market. Dynavax thought that the safety profile for Heplisav also compared favorably. The Food and Drug Administration even told the company that it could expand its Biologic License Application, or BLA, to include a wider age range of adults than originally planned.

All of that meant nothing, though, when an FDA advisory committee voted not to recommend Heplisav for approval because of safety concerns. It meant even less several months later when the FDA heeded that recommendation and didn't approve the vaccine. Dynavax shares plunged more than 60% from previous highs.

Sometimes, even the hint of an unfavorable regulatory decision can impact a biotech stock. Sarepta Therapeutics (NASDAQ: SRPT  ) shares lost more than 25% of their value in April. There wasn't an outright adverse FDA decision in this case. Instead, the FDA requested additional information related to a potential accelerated approval for Duchenne muscular dystrophy drug eteplirsen.

3. Vicious volatility
Investing in any stock can be something of a roller coaster ride. However, few sectors display the vicious volatility of biotech. Beginners to biotech investing need to be prepared for a wild ride.

Keryx shot up 164% in a matter of a few days in January. By early February, the stock was down almost 30% from those highs. Dynavax still hasn't come back from the stock's wipeout. As mentioned, Sarepta dropped more than 25% in April. However, shares are now up 28% from the low point.

Unfortunately, gaining FDA approval and commercializing a product don't necessarily end a biotech's volatility. Dendreon (NASDAQ: DNDN  ) received approval for prostate cancer drug Provenge in April 2010. JPMorgan estimated that peak annual sales for the drug could reach $3 to $4 billion. Those estimates failed to materialize. Disappointing sales for the drug have contributed to a stock collapse of more than 90% since the FDA approval.

Basics still apply
While some parts of conventional investing don't fit well with clinical-stage biotech, many of the basic principles still apply. In fact, some are perhaps even more important.

Diversification, for one, is critical to handle the risks inherently associated with biotech. Buying for the long term potential of a biotech and its products makes sense with the wild swings commonly experienced with these stocks. And the old mantra of "bet on the jockey" applies to biotech like any other industry.

Biotech investing for beginners presents big challenges. The points I mentioned only scratch the surface of what you need to know. However, every person that has done well in biotech was once a beginner also. There's no better time to begin than now.

While you can certainly make huge gains in biotech stocks, you don't want to put all of your eggs in that basket. The best overall investing approach is to choose great companies and stick with them for the long term. The Motley Fool's free report "3 Stocks That Will Help You Retire Rich" names stocks that could help you build long-term wealth and retire well, along with some winning wealth-building strategies that every investor should be aware of. Click here now to keep reading.

The 3 Deadliest Diseases in the U.S.

There's good news and bad news for Americans. The good news is that the age-adjusted death rate in the U.S. is lower than it's ever been. What's the bad news? The same diseases still kill too many Americans year after year. But progress is being made. Here are the three deadliest diseases in the U.S. -- and what encouraging developments are at hand.

1. Heart disease
Heart disease causes nearly 600,000 deaths in the U.S. each year. Almost two-thirds of that total results from coronary heart disease, which stems from narrowing and blockage of the arteries by deposits of cholesterol and other substances.

Mortality rates for heart disease have been decreasing relatively steadily since 1980. Availability of medications to help individuals control cholesterol levels has no doubt played a major role in this improvement. Now, a new cholesterol drug that could be one of the most effective ever will be available.

Earlier this month, the U.S. Food and Drug Administration approved Merck's (NYSE: MRK  ) Liptruzet. The drug actually is a combination of two already-approved cholesterol medications -- Lipitor from Pfizer (NYSE: PFE  ) and Merck's Zetia. In clinical studies, Liptruzet was found to reduce "bad" cholesterol by as much as 61%, significantly better than either of its two component drugs.

This should be great news for patients who have trouble keeping cholesterol levels in check taking one of the currently available medications. And with improvements like this in cholesterol drugs and in other areas, those high numbers of deaths related to heart disease will hopefully keep on falling.

2. Cancer
Cancer continues to be one of the scariest words for too many Americans. Around 575,000 deaths each year across the U.S. result from various forms of cancer.   

Several positives leap out when we look at cancer statistics, though. Cancer-related mortality rates have declined since the early 1990s. While prostate cancer and breast cancer rank at the top of the list when it comes to new diagnoses, many more people now survive battles with these forms of cancer.

Lung cancer, though it ranks third in new cases, stands as the leading cancer-related cause of death and kills more Americans than the next three types of cancer combined. This is discouraging, but there are some breakthroughs making a difference.

Several new drugs are now available that fight lung cancer, including Xalkori from Pfizer. Clinical studies for Xalkori showed progression-free survival rates twice as high as those with standard therapies. However, perhaps even better news for the fight against lung cancer comes from technology used in the development of Xalkori and other cancer drugs.

Drugs like Xalkori reached the market in around half the time that most take to do so in part through the use of genetic screening. Next-generation sequencing technology from Illumina (NASDAQ: ILMN  ) and others now enables researchers to quickly sequence DNA. This speeds up drug development by helping companies target drugs for specific gene mutations and shortening the amount of time required to enroll patients. With more effective treatments reaching the market sooner, more lives could potentially be saved.

3. Chronic lower respiratory disease
Around 140,000 Americans die each year from chronic lower respiratory disease, primarily due to chronic obstructive pulmonary disease, or COPD. Smoking is the key risk factor for COPD, causing as much as 90% of COPD deaths.

Unfortunately, chronic lower respiratory disease stands out as the only one of the top three deadliest diseases in the U.S. that saw an increase in age-related death rates in the most recent CDC data. However, cigarette smoking trends continue to drop for both adults and students. This could portend a better outlook in the future in the battle against this disease.

Another promising sign comes from the development of effective treatments for COPD. GlaxoSmithKline (NYSE: GSK  ) and Theravance (NASDAQ: THRX  ) obtained FDA approval just days ago for a new COPD drug called Breo. Even more hope hinges on another drug potentially on the way from the two companies -- Anoro. The FDA set a decision date of Dec. 18 for the drug. If approved, Anoro would become the first treatment to combine a long-acting muscarinic antagonist and a long-acting beta-2 agonist.

Doing good
Not only are all of the companies mentioned doing good by helping fight America's deadliest diseases, they're also doing well for investors. Theravance and Illumina rank as the best-performing stocks of the group, with one-year gains of 90% and 58%, respectively. Pfizer shares jumped more than 30% in the past year, with Merck's stock rising by 22%. Glaxo lagged behind, but still recorded a respectable 15% gain during the period.

There are many other companies, universities, and government researchers who are also hard at work to find new ideas for tackling these challenging diseases. Hopefully, we will soon reach the point where the good news outweighs the bad.

Here's some good news for investors: Choosing great companies and sticking with them for the long term still works. The Motley Fool's free report "3 Stocks That Will Help You Retire Rich" names stocks that could help you build long-term wealth and retire well, along with some winning wealth-building strategies that every investor should be aware of. Click here now to keep reading.

American Automakers Are All up Big

For the first time in a long time, Detroit is gaining ground: Ford (NYSE: F  ) , General Motors (NYSE: GM  ) , and Chrysler all posted gains in U.S. market share in the first quarter, with sales growth that outpaced the overall market.

What's going on? In this video, Fool.com contributor John Rosevear explains how it's all about the product – and also about some economic trends that especially favor Detroit's Big Three right now.

Worried about Ford?
If you're concerned that Ford's turnaround has run its course, relax – there's good reason to think that the Blue Oval still has big growth opportunities ahead. We've outlined those opportunities in detail, in the Motley Fool's premium Ford research service. If you're looking for some freshly updated guidance to Ford's prospects in coming years, you've come to the right place – click here to get started now.

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

New York's 10 Most Important Banks

How big is "too big to fail"? In the great state of New York, it's pretty darn big.

In fact, in some places "2B2F" is pretty darn near to "too big to compete with."

Meet your banker -- whether you like it or not
A recent report out of the Federal Deposit Insurance Corporation tallied up the size of bank deposits among New York's 10 top banks, giving a good picture of who owns what kind of "customer real estate" in the New York banking market. The results may surprise you.


Data from the New York Fed, current as of June 2012.

See that big green line of billion-dollar bills down there at the bottom? That's JPMorgan Chase's (NYSE: JPM  ) deposit base -- and it's bigger than the next seven banks above it, combined -- including fellow 2B2Fers Citigroup (NYSE: C  ) and Bank of America (NYSE: BAC  ) .

According to the FDIC's figures, JPMorgan boasts a 36.9% market share in the state of New York. That's more than four times the share of the state's No. 2 bank, Bank of New York Mellon (NYSE: BK  ) .

An important thing to remember
What explains these banks' popularity? In a sense, they're probably at least partially "popular for being popular." They're New York's 10 most important banks precisely because of their size. Because with great size comes great ease of access for their customers -- more branches, more ATMs, more ability to hit a JPMorgan signpost with every swing of a dead cat.

On the other hand, I'm not so sure that the banks' great size will always be a good thing for their investors.

Think about it. Having great size, and benefiting from the "network effect" among its customers, banks like JPMorgan look like good, safe, defensive investments. Absent a major self-inflicted wound, it should be very hard to unseat them from their dominant positions.

On the other hand, once you've attained 37% market share, where do you go from there? Growing the business by expanding market share gets progressively harder as the numbers get bigger, and in the long run, a really big bank seems likely to grow in lockstep with population growth in its home market. (Although really big banks generally have other markets to expand in, too).

Forget the "1%." These are the 4%.
But what about the banks that are not too big to fail? By definition, the possibility of failure makes smaller banks seem riskier investments. But possessed of the ability to grow with the population, through acquisitions, and by stealing market share from the incumbents, they're potentially more rewarding investment options -- and they do exist. A relative small fry such as New York Community Bancorp (NYSE: NYCB  ) , for example, doesn't even register on the FDIC's top 10. But with a modest P/E ratio of 12, and a generous 7.3% dividend yield, you can bet NYCB registers with investors.

In fact, FDIC records show a total of 231 such smaller banks operating in New York. They just don't have as big piece of the pie as the top 10, which, despite representing just 4% of the total number of banks in the state, control 76% of the banking deposits in the state -- three out of every four customer dollars.

Are you ready to rumble?
That's a tough market to crack, no doubt. This may be why, over the past two and a half years, a grand total of one -- one! -- new bank was formed in all of New York. But for small banks, and small bank investors willing to accept the challenge, there's a big prize to shoot for.

Namely -- three out of every four depositor dollars, and you know where to look for them.

Are you part of the 99%? The Motley Fool's new free report highlights three less-than-luxurious stocks the 1% may be overlooking. Just click here to read it now.

Group Urges Retailers to Reject Card Settlement

WASHINGTON (AP) -- The National Retail Federation urged retailers on Tuesday to reject a settlement with major credit card companies over alleged fee-fixing, ahead of a court deadline next week.

Visa (NYSE: V  ) , MasterCard (NYSE: MA  ) , and other card companies agreed in July to settle a lawsuit brought by retailers that claimed card issuers conspired to fix the fees they charge stores for accepting credit cards.

The National Retail Federation, representing more than 9,000 retailers across the country, has rejected the settlement, in part, because it includes a provision barring retailers from filing future lawsuits over swipe fees. Retailers have also argued that the $7.2 billion settlement was far less than what retailers deserved and might have won at trial.

Visa called the settlement a "fair and reasonable compromise."

Retailers have until May 28 to opt out of the agreement, if they wish to pursue future legal action. Retailers who do not opt out by the deadline will automatically be considered to have accepted the settlement.

"No settlement at all would be better than this one-sided 'agreement' written by the card companies for the card companies that would tie retailers' hands for decades to come," said Mallory Duncan, the National Retail Federation's general counsel.

The suit was brought in 2005 by 19 trade associations and retail companies. The National Retail Federation is not a party to the lawsuit, but says its members would be affected by the terms of the settlement.

Are Apple's Earnings Taxed Enough?

Top 10 Transportation Stocks To Own Right Now

The exportation of liquefied natural gas, or LNG, has been a hotly debated topic in the United States recently. Companies from all types of backgrounds have been staking their claims on either side of the argument. One thing is for certain, and that is that in 2015 Cheniere Energy (NYSEMKT: LNG  ) will begin exporting liquefied natural gas from its Department of Energy-approved Sabine Pass facility.��

Aside from the potential growth in exports from North America, Australia looks to be the largest contributor to the growth of natural gas finding its way into the international trade market. Transportation of natural gas chilled to temperatures as low as -260 degrees Fahrenheit certainly requires a high degree of skilled execution. That's where Teekay LNG Partners (NYSE: TGP  ) enters the picture. With a fleet much younger than the industry average and a distribution over 6%, it could be a great second-degree play on the coming trend.

Top 10 Transportation Stocks To Own Right Now: Saia Inc.(SAIA)

Saia, Inc., an asset-based trucking company, provides transportation and supply chain solutions primarily to the retail, chemical, and manufacturing industries in the United States. The company, through it subsidiary, Saia Motor Freight Line, LLC, offers regional and interregional less than truckload (LTL) services, selected national LTL, and time-definite services. It was formerly known as SCS Transportation, Inc. Saia, Inc. was founded in 2000 and is headquartered in Johns Creek, Georgia.

Advisors' Opinion:
  • [By Michael]

    Saia, Inc. is an asset-based trucking company that provides a variety of transportation and supply chain solutions to a range of industries, including the retail, chemical and manufacturing industries. Its EPS forecast for the current year is 0.77 and next year is 1.34. According to consensus estimates, its topline is expected to grow 10.87% current year and 7.41% next year. It is trading at a forward P/E of 12.35. Out of eight analysts covering the company, four are positive and have buy recommendations and four have hold ratings.

Top 10 Transportation Stocks To Own Right Now: Assisted Living Concepts Inc. New (ALC)

Assisted Living Concepts, Inc., together with its subsidiaries, operates senior living residences in the United States. It offers general services, such as meals, activities, laundry, and housekeeping; support services, including assistance with medication, monitoring health status, co-ordination of transportation, and co-ordination with physician offices; and personal care services, such as dressing, grooming, and bathing. The company also arranges access to additional services from third-party providers, including physical, occupational, and respiratory therapy; home health; hospice; and pharmacy services. As of December 31, 2011, it operated 211 senior living residences comprising 9,325 units in 20 states. Assisted Living Concepts, Inc. was founded in 1994 and is headquartered in Menomonee Falls, Wisconsin.

Top 5 Long Term Stocks To Watch For 2014: Boardwalk Pipeline Partners LP (BWP)

Boardwalk Pipeline Partners, LP is a limited partnership company. The Company owns and operates three interstate natural gas pipeline systems including integrated storage facilities. Its business is conducted by its primary subsidiary, Boardwalk Pipelines, LP (Boardwalk Pipelines) and its subsidiaries, Gulf Crossing Pipeline Company LLC (Gulf Crossing), Gulf South Pipeline Company, LP (Gulf South) and Texas Gas Transmission, LLC (Texas Gas) (together, the operating subsidiaries), which consist of integrated natural gas pipeline and storage systems. During the year ended December 31, 2011, it formed Boardwalk Midstream, LP (Midstream), and its operating subsidiary, Boardwalk Field Services, LLC (Field Services), which is engaged in the natural gas gathering and processing business. In December 2011, Boardwalk HP Storage Company, LLC (HP Storage), a joint venture between Boardwalk Pipelines and Boardwalk Pipelines Holding Corp. (BPHC) acquired Petal Gas Storage, L.L.C. (Petal), Hattiesburg Gas Storage Company (Hattiesburg). In December 2011, it acquired a 20% equity interest in HP Storage.

The Company�� pipeline systems originate in the Gulf Coast region, Oklahoma and Arkansas and extend north and east to the midwestern states of Tennessee, Kentucky, Illinois, Indiana and Ohio. It serves a mix of customers, including producers, local distribution companies (LDCs), marketers, electric power generators, direct industrial users and interstate and intrastate pipelines. The Company provides a portion of its pipeline transportation and storage services, through firm contracts, under which the Company�� customers pay monthly capacity reservation charges. Other charges are based on actual utilization of the capacity under firm contracts and contracts for interruptible services. During 2011, approximately 82% of its revenues were derived from capacity reservation charges under firm contracts; approximately 14% of its revenues were derived from charges-based on actual utilization under firm contr! acts, and approximately 4% of its revenues were derived from interruptible transportation, interruptible storage, parking and lending (PAL) and other services. Its expansion projects include South Texas Eagle Ford Expansionand Marcellus Gathering System and HP Storage.

Pipeline and Storage Systems

The Company�� operating subsidiaries own and operate approximately 14,200 miles of pipelines, directly serving customers in twelve states and indirectly serving customers throughout the northeastern and southeastern United States through numerous interconnections with unaffiliated pipelines. In 2011, its pipeline systems transported approximately 2.7 trillion cubic feet of gas. Average daily throughput on its pipeline systems during 2011 was approximately 7.3 billion cubic feet. Its natural gas storage facilities are comprised of eleven underground storage fields located in four states with aggregate working gas capacity of approximately 167.0 billion cubic feet. the Company operates the assets of HP Storage on behalf of the joint venture.

The principal sources of supply for our pipeline systems are regional supply hubs and market centers located in the Gulf Coast region, including offshore Louisiana, the Perryville, Louisiana area, the Henry Hub in Louisiana and the Carthage, Texas area. Its pipelines in the Carthage, Texas area provide access to natural gas supplies from the Bossier Sands, Barnett Shale, Haynesville Shale and other gas producing regions in eastern Texas and northern Louisiana. The Henry Hub serves as the designated delivery point for natural gas futures contracts traded on the New York Mercantile Exchange. Its pipeline systems also have access to unconventional mid-continent supplies, such as the Woodford Shale in southeastern Oklahoma and the Fayetteville Shale in Arkansas. The Company also accesses the Eagle Ford Shale in southern Texas; wellhead supplies in northern and southern Louisiana and Mississippi; and Canadian natural gas through an unaffil! iated pip! eline interconnect at Whitesville, Kentucky.

Gulf Crossing

The Company�� Gulf Crossing pipeline system originates near Sherman, Texas, and proceeds to the Perryville, Louisiana area. The market areas are in the Midwest, Northeast, Southeast and Florida through interconnections with Gulf South, Texas Gas and unaffiliated pipelines.

Gulf South

The Company�� Gulf South pipeline system is located along the Gulf Coast in the states of Texas, Louisiana, Mississippi, Alabama and Florida. The on-system markets directly served by the Gulf South system are generally located in eastern Texas, Louisiana, southern Mississippi, southern Alabama, and the Florida Panhandle. These markets include LDCs and municipalities located across the system, including New Orleans, Louisiana; Jackson, Mississippi; Mobile, Alabama; and Pensacola, Florida, and other end-users located across the system, including the Baton Rouge to New Orleans industrial corridor and Lake Charles, Louisiana. Gulf South also has indirect access to off-system markets through numerous interconnections with unaffiliated interstate and intrastate pipelines and storage facilities. These pipeline interconnections provide access to markets throughout the northeastern and southeastern United States.

Gulf South has two natural gas storage facilities. The gas storage facility located in Bistineau, Louisiana, has approximately 78 billion cubic feet of working gas storage capacity from which Gulf South offers firm and interruptible storage service, including no-notice service. Gulf South�� Jackson, Mississippi, gas storage facility has approximately five billion cubic feet of working gas storage capacity, which is used for operational purposes and is not offered for sale to the market.

Texas Gas

The Company�� Texas Gas pipeline system originates in Louisiana, East Texas and Arkansas and runs north and east through Louisiana, Arkansas, Mississippi, Tennessee, K! entucky, ! Indiana, and into Ohio, with smaller diameter lines extending into Illinois. Texas Gas directly serves LDCs, municipalities and power generators in its market area, which encompasses eight states in the South and Midwest and includes the Memphis, Tennessee; Louisville, Kentucky; Cincinnati and Dayton, Ohio, and Evansville and Indianapolis, Indiana metropolitan areas. Texas Gas also has indirect market access to the Northeast through interconnections with unaffiliated pipelines. Texas Gas owns nine natural gas storage fields, of which it owns the majority of the working and base gas. Texas Gas uses this gas to meet the operational requirements of its transportation and storage customers and the requirements of its no-notice service customers.

Field Services

In 2011, the Company formed its Field Services subsidiary and transferred to it approximately 100 miles of gathering and transmission pipeline. In 2012, the Company transferred to Field Services an additional 240 miles of pipeline and two compressor stations. Field Services is developing gathering and processing capabilities in south Texas and Pennsylvania.

Advisors' Opinion:
  • [By Michael Brush]

    As for Boardwalk Pipeline Partners (NYSE:BWP), it operates natural gas pipelines in the U.S. transporting about 10% of the nation's natural gas on an annual basis. Although it generates just 6% of Loews' overall net income, it does so on a consistent basis. Personally, I like the natural gas tie-in. Lastly, it owns 100% of privately operated HighMount Exploration and Production, a Texas-based company that produces natural gas, LNG and oil in Texas and Oklahoma. In 2012, as a result of lower natural gas prices, it's had to take large impairment charges on its natural gas revenue. I'd expect its situation to improve in 2013. Loews has increased its book value per share by approximately 9.5% on an annualized basis over the past five years. Owning its stock instead of the energy-related holdings directly allows you to benefit from its other holdings at the same time. 

Top 10 Transportation Stocks To Own Right Now: Expeditors International of Washington Inc.(EXPD)

Expeditors International of Washington, Inc. provides logistics services in the United States and internationally. The company?s services include consolidation or forwarding air and ocean freight; distribution management; vendor consolidation; cargo insurance; purchase order management; and customized logistics information. Its airfreight services comprise the procurement of shipments from its customers; determination of the routing; consolidation of shipments bound for a particular airport distribution point; and selection of the airline for transportation to the distribution point. The company also offers breakbulk services that include receiving and breaking down consolidated airfreight lots and arranging for distribution of the individual shipments. Its ocean freight and ocean services include ocean freight consolidation; and handling full container loads. In addition, the company acts as a customs broker, who assists importers to clear shipments through customs by pre paring required documentation, calculating and providing for payment of duties on behalf of the importer, arranging for any required inspections by governmental agencies, and arranging for delivery; and provides other value added services at destination, such as warehousing and product distribution, time definite transportation, and inventory management. Further, it offers custom clearances for goods moving by rail and truck between the United States, Canada, and/or Mexico; and customs consulting services The company?s customers primarily include retailers, distributors of consumer electronics, department store chains, clothing and shoe wholesalers, manufacturers, and catalogue stores. Expeditors International of Washington, Inc. was founded in 1979 and is based in Seattle, Washington.

Top 10 Transportation Stocks To Own Right Now: Canadian Pacific Railway Limited(CP)

Canadian Pacific Railway Limited, through its subsidiaries, operates as a transcontinental railway providing freight transportation services, logistics solutions, and supply chain expertise in Canada and the United States. It transports bulk commodities, including grain, coal, sulphur, and fertilizers; merchandise freight; finished vehicles and automotive parts; forest products, which include wood pulp, paper, paperboard, newsprint, lumber, panel, and oriented strand board; and industrial and consumer products comprising chemicals, energy, and plastics, as well as mine, metals, and aggregates. The company provides rail and intermodal transportation services over a network of approximately 14,700 miles serving the principal business centers of Canada, from Montreal to Vancouver, British Columbia; and the Midwest and Northeast regions of the United States. Canadian Pacific Railway Limited was founded in 1881 and is headquartered in Calgary, Canada.

Advisors' Opinion:
  • [By Richard Young]

    With the Obama administration’s denial of pipeline transportation routes to the south, Canadian oil producers are looking to rail to transport their crude out of Alberta. Canadian Pacific Railway (NYSE:CP) has signed a deal with NuStar Energy (NYSE:NS) to bring oil from the refiner’s Saskatchewan terminal to the coastal cities of Canada for export to emerging markets. CP has a fleet of 1,700 cars for transporting oil.

    My long-term chart shows CP shares reverting quickly to trend. Buy.

Top 10 Transportation Stocks To Own Right Now: YRC Worldwide Inc.(YRCW)

YRC Worldwide Inc., through its subsidiaries, provides various transportation services worldwide. The company?s YRC National Transportation unit offers a range of services for the transportation of industrial, commercial, and retail goods, such as apparel, appliances, automotive parts, chemicals, food, furniture, glass, machinery, metal, metal products, non-bulk petroleum products, rubber, textiles, wood, and other manufactured products. It serves manufacturing, wholesale, retail, and government customers. As of December 31, 2009, it had 11704 owned tractors, 1239 leased tractors, 50083 owned trailers, and 3244 leased trailers. Its YRC Regional Transportation unit?s service portfolio includes regional delivery, which comprises next-day local area delivery and second-day services, consolidation/distribution services, protect-from-freezing and hazardous materials handling, and various specialized offerings; expedited delivery, that comprises day-definite, hour-definite, and time definite capabilities; inter-regional delivery; cross-border delivery; and operation of my.yrcregional.com and NewPenn.com, which are e-commerce Websites offering online resources to manage transportation activity. The company?s YRC Logistics units? service portfolio consists of distribution services that include flow through and pool distribution, dedicated warehousing, and value-added services; global services, which comprise international freight forwarding, customs brokerage, and value-added services; and transportation services, such as truckload brokerage, domestic freight forwarding, and transportation management. Its YRC Truckload unit provides customized truckload services on regional and national level through the use of company and team-based drivers. The company was founded in 1924 and is headquartered in Overland Park, Kansas.

Top 10 Transportation Stocks To Own Right Now: United Parcel Service Inc.(UPS)

United Parcel Service, Inc., a package delivery company, provides transportation, logistics, and financial services in the United States and internationally. It operates in three segments: U.S. Domestic Package, International Package, and Supply Chain & Freight. The U.S. Domestic Package segment engages in the time-definite delivery of letters, documents, and packages in the United States. The International Package segment offers air and ground delivery of small packages and letters to approximately 220 countries and territories, including shipments outside the United States, as well as shipments with either origin or distribution outside the United States; export services; and domestic services move shipments within a country?s borders. The Supply Chain & Freight segment provides forwarding and logistics services, such as supply chain design and management, freight distribution, customs brokerage, mail, and consulting services in approximately 195 countries and territorie s; and less-than-truckload and truckload services to customers in North America. In addition, the company offers various technology solutions for automated shipping, visibility, and billing; information technology systems and distribution facilities to various industries comprising healthcare, technology, and consumer/retail; and a portfolio of financial services that provides customers with short-term working capital, government guaranteed lending, global trade financing, credit cards, and export financing. It operates a fleet of approximately 99,800 package cars, vans, tractors, and motorcycles; an air fleet of 527 aircraft; and 33,800 containers used to transport cargo in its aircraft. The company was founded in 1907 and is headquartered in Atlanta, Georgia.

Advisors' Opinion:
  • [By Mark]

    UPS is a package delivery company. Cramer holds 600 shares of UPS stocks. UPS has a dividend yield of 3.20% and returned -6.68% since the beginning of this year. It has a market cap of $63.89B and a P/E ratio of 16.08. Jason Capello invested $253 million in UPS.

  • [By Buffett]

     As the world's largest package delivery company, United Parcel Service (UPS) is the kind of toll-bridge operator that Buffett likes to invest in. When a business ships something, UPS gets a cut. Plus the sheer size of its global shipping network give UPS the kind of economic moat that Buffett likes to see. So do high customer-satisfaction ratings and conscientious drivers -- even if they do have to wear shorts.

    "This is not a business that you can re-create overnight," says Lowenstein. In fact, competitors have a tough time because UPS is so strong. DHS left the U.S. shipping market in 2009, and the U.S. Postal Service is struggling financially.

    That economic moat and broad reach also give UPS the pricing power, high profit margins and steady earnings growth favored by Buffett, whose Berkshire Hathaway owns 1.4 million shares. Here's another quality the Oracle of Omaha likes: UPS is shareholder friendly, returning excess capital through dividend hikes, share buybacks and debt retirement. "They are good capital allocators. They are not destroying value by doing dumb things," says Lowenstien.

    Despite these strengths, UPS looks cheap, because with a price-to-earnings ratio of 14.9, it trades about 30% below its average since 2000. In short, that means today's price is relatively low. "UPS is on sale due to concerns about the economy," says Lowenstein. And like Buffett, Lowenstein is a patient value investor who believes that sooner or later those concerns will blow over. When that happens, UPS stock will deliver for investors who buy now.

Top 10 Transportation Stocks To Own Right Now: Ryder System Inc.(R)

Ryder System, Inc. provides transportation and supply chain management solutions. It operates in three segments: Fleet Management Solutions (FMS), Supply Chain Solutions (SCS), and Dedicated Contract Carriage (DCC). The FMS segment offers leasing, contract maintenance, contract-related maintenance, and commercial rental of trucks, tractors, and trailers primarily in the United States, Canada, and the United Kingdom. It also offers fleet support services, such as fuel, insurance, safety, administration, environmental management, and information technology services. In addition, this segment sells its used vehicles through 55 company owned retail sales centers, as well as through its Web site, Usedtrucks.Ryder.com. Its customers include small businesses and enterprises operating in transportation, grocery, lumber and wood products, food service, and home furnishings industries. The SCS segment provides supply chain consulting solutions in North America and Asia. It offers di stribution management, transportation management, and professional services, as well as various support services, such as information technology and engineering solutions. This segment primarily serves automotive, electronics, high-tech, telecommunications, industrial, consumer goods, consumer packaged goods, paper and paper products, office equipment, food and beverage, and general retail industries. The DCC segment offers vehicles and drivers as part of a transportation solution in the United States. It combines the equipment, maintenance, and administrative services of a service lease with drivers and additional services, such as routing and scheduling, fleet sizing, safety, regulatory compliance, risk management, technology and communication systems support, and other technical support. This segment serves energy and utility, metals and mining, retail, construction, healthcare products, and food and beverage industries. The company was founded in 1933 and is based in Mia mi, Florida.

Top 10 Transportation Stocks To Own Right Now: Norfolk Souther Corporation(NSC)

Norfolk Southern Corporation, through its subsidiaries, engages in the rail transportation of raw materials, intermediate products, and finished goods primarily in the United States. The company transports coal products, such as coal, coke, and iron ore; automotive products, including finished vehicles and auto parts; chemicals products consisting of sulfur and related chemicals, petroleum products, chlorine and bleaching compounds, plastics, rubber, industrial chemicals, chemical wastes, and municipal wastes; metals and construction products comprising steel, aluminum products, machinery, scrap metals, cement, aggregates, bricks, and minerals; and paper, clay, and forest products, including lumber and wood products, pulp board and paper products, wood fibers, wood pulp, scrap paper, and clay. It also transports agriculture, consumer, and government products, such as soybeans, wheat, corn, fertilizer, animal and poultry feed, food oils, flour, beverages, canned goods, swee teners, consumer products, ethanol, and items for the military. In addition, it engages in the intermodal operations that include moving of shipments in trailers, the United States and international containers, and roadrailer equipment. Further, the company transports overseas freight through various Atlantic and Gulf Coast ports, as well as provides a range of logistics services; and operates passenger and commuter trains. Additionally, it involves in the acquisition, leasing, and management of coal, oil, gas, and minerals; the development of commercial real estate; telecommunications; and the leasing or sale of rail property and equipment. As of December 31, 2010, the company operated approximately 20,000 route miles in 22 states and the District of Columbia. The company was founded in 1883 and is based in Norfolk, Virginia.

Advisors' Opinion:
  • [By Sam Collins]

    Norfolk Southern Corporation (NYSE: NSC) is a rail transportation company that moves raw materials, intermediate products and finished goods that represent a broad cross-section of the economy with an emphasis on energy (coal). We’ve been following NSC for a long time, and it has provided many profitable trades.

    During periods of high energy costs, railroads tend to do much better than other transportation companies because of their fuel usage advantage — they are able to carry large amounts of cargo at a fraction of the cost of trucks and air freight. NSC is one of the most efficient railroads in the country, operating over 21,000 miles in 22 Eastern states.?

    S&P has a “four-star buy” rating on NSC with a target of $75. Technically, note the cup-and-handle breakout that supports a trading target of $75.

Top 10 Transportation Stocks To Own Right Now: J.B. Hunt Transport Services Inc.(JBHT)

J.B. Hunt Transport Services, Inc., together with its subsidiaries, operates as a surface transportation, delivery, and logistics company in North America. It operates in four segments: Intermodal (JBI), Dedicated Contract Services (DCS), Full-Load Dry-Van (JBT), and Integrated Capacity Solutions (ICS). The JBI segment provides intermodal freight solutions, including origin and destination pickup and delivery services in the continental United States, Canada, and Mexico. This segment operates 45,666 pieces of company-controlled trailing equipment; and manages a fleet of 2,592 company-owned tractors. The DCS segment involves in the design, development, and execution of supply chain solutions, which support various transportation networks. This segment offers final mile delivery, replenishment, and specialized services supporting private fleet conversion, fleet creation, and transportation system augmentation. As of December 31, 2010, it operated 4,259 company-owned trucks, 357 customer-owned trucks, and 23 independent contractor trucks. The JBT segment provides full-load, dry-van freight services by utilizing tractors operating over roads and highways. It operated 1,697 company-owned tractors. The ICS segment provides non-asset, asset-light, and transportation logistics solutions. It offers flatbed, refrigerated, expedited, and less-than-truckload, as well as various dry-van and intermodal solutions. The company transports a range of freight, including general merchandise, specialty consumer items, appliances, forest and paper products, building materials, soaps and cosmetics, automotive parts, electronics, and chemicals. J.B. Hunt Transport Services, Inc. was founded in 1961 and is headquartered in Lowell, Arkansas.