Just How Expensive Is Shale Oil?

While new technologies such as fracking and horizontal drilling are largely responsible for the boom in U.S. oil and gas production, the costs associated with these so-called "technological barrels" are on the rise.

So exactly how costly is shale oil production? Staggeringly expensive, according to a new report from a leading energy research firm. Let's take a closer look.

Costs still rising
According to recent estimates by Sanford C. Bernstein, a research and consulting firm, non-OPEC marginal cost of production rose last year to a whopping $104.50 a barrel, representing more than a 13% increase from $92.30 a barrel in the previous year.

What's more is that marginal production costs for U.S. drillers rose by even more, in both relative and absolute terms, from around $89 per barrel in 2011 to a remarkable $114 a barrel last year. While many have argued that rising marginal costs of production for unconventional oil projects will help buoy oil prices by driving a floor underneath prices, they're also limiting the industry's profitability.

Bernstein's findings are worrying, because they imply that new technological improvements aren't enough to bring down the industry's overall marginal costs. "What we call technological barrels are day after day more expensive," Christophe de Margerie, chief executive of French oil giant Total (NYSE: TOT  ) , recently told the Financial Times.

Implications for big oil
That's bad news for the world's largest integrated oil companies, which are seeing reduced profitability due to the double whammy of rising costs and a cap on oil prices as a result of increased supply due to the shale boom. Not surprisingly, profit margins among the world's 50-largest listed oil companies are currently the lowest they've been in a decade, according to Bernstein.

For instance, net income margins for ExxonMobil (NYSE: XOM  ) , BP (NYSE: BP  ) , and Total have all fallen from their highs near the middle of the previous decade. Last year, BP and Total reported margins of 3.1% and 5.9%, respectively, down significantly from 2005 respective margins of 9.2% and 10.5%. 

Exxon's net income margin, however, fell only modestly, coming in at 10.9% last year, as compared with 10.5% in 2005. And ConocoPhillips (NYSE: COP  ) was one of the few majors that managed to buck the weak margin trend, posting an impressive 14% net income margin last year, up from 8.2% in 2005.

Bernstein further finds that, over the past decade, marginal production costs have risen by about 250%, from just under $30 a barrel in 2002 to a record of $104.5 a barrel last year, while cash costs have increased from $9.70 a barrel to $44.20 a barrel over the same time period.

The bottom line
The big takeaway is that the marginal barrel of oil is becoming more expensive to produce, which is helping buoy oil prices. But rising costs and lower profitability are a major challenge for the world's largest integrated oil companies, which are struggling to boost production and reserves.

Most reported year-over-year declines in total oil and gas production for the first quarter, despite high levels of capital spending, which suggests diminishing returns from their upstream spending. According to energy research and consulting firm Douglas-Westwood, the upstream industry spent $2.4 trillion to produce 12.3 million barrels per day of additional oil output in the period 1995-2005.

Yet in the period from 2005 to 2010, the same level of spending actually yielded a decline of 0.2 million barrels per day. With unconventional sources of oil expected to account for a much larger share of total production over the next several years, energy companies will have to find better ways to get more out of their money.

Though Exxon, Total, and the rest of the supermajors are having difficulty boosting production, companies focused exclusively on exploration and production are having better luck. Chesapeake Energy, for instance, has reported nearly 60% year-over-year growth in oil production. As the company transitions away from natural gas, will it manage to meet its oil production target and boost cash flow? Or will it languish under the weight of its heavy debt load? To answer that question and 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, and as an added bonus, you'll receive a full year of key updates and expert guidance as news continues to develop.

Does Going Green Contribute to Bottom Line Profits?

It's always nice for big companies and their PR spin machines to mention how green and environmentally friendly their operations have become. However, those statements are often just that -- PR spinning its wheels. We have to be honest with ourselves: While the going green theme will help improve Ford's (NYSE: F  ) or General Motors' brand image, it hasn't historically contributed much to the bottom line, if at all. A recent study by Interbrand found that the automotive industry has improved by leaps and bounds in producing environmentally green brands and, this time, there is more substance for investors looking at the bottom line.

Best global green brands
Recently Interbrand, the world's leading brand consultancy, released its annual "Best Global Green Brands" report. Surprisingly to some, the automotive sector dominated, with Toyota (NYSE: TM  ) , Ford, and Honda owning the top three spots -- in that order. Automakers also make up 50% of the top 10, with Nissan ranking fifth, and Volkswagen in at No. 7. Nissan was even named the most improved, jumping 16 spots from last year to its No. 5 ranking.

The report examines consumer research and public perception of each company's sustainability and green practices. According to Interbrand, David Pearson, Deloitte's Global Sustainability Leader, noted that: "Sustainability continues to assert itself on the business agenda. Customers and stakeholders are holding businesses more and more accountable for sustainability performance, and businesses are working hard to ensure that their external perception reflects their internal efforts."

The reason that this global green brand report means more than it has in the past is because we've seen a boom in green products that have actually produced profits in the bottom line. Three good examples of this are Ford's EcoBoost engine, Toyota's Prius, and the breakout company Tesla (NASDAQ: TSLA  ) .

EcoBoost
Ford's critically acclaimed engine, which launched in 2009, offers a unique combination of fuel economy and turbocharged power. Ford has lofty goals for its emissions as regulations continue to tighten, and its EcoBoost offers approximately 20% better fuel efficiency, and 15% reduced greenhouse emissions. Thus far, the sales have backed up the hype; see the impressive growth below.

Source: Ford Press Release.

The increase in EcoBoost sales, including its option in America's No. 1 selling F-Series, was a prime reason Ford jumped 13 spots in this year's report to No. 2. While Ford's popular engine has been a great success, Toyota has taken a more complete approach.

Toyota has owned Interbrand's "Best Global Green Brand's" No. 1 position for three years now. The Japanese automaker continues to make environmentally sound practices a part of its business strategy, and continues to excel in the hybrid segment. Consider that almost 3 million Prius models sold worldwide last year alone – an impressive number. As the future trends continue toward EV, improved fuel efficiency, and smaller vehicles, profits will continue to improve from these green initiatives. Toyota looks well-positioned to reward its investors with increasing revenues in the segment.

Tesla (NASDAQ: TSLA  ) is in a league all its own right now, and its entire mission is to produce EVs for the future. Tesla believes that, after 100 years of the internal combustion engine, it's time to shake up the industry with a more environmentally friendly vehicle. This may be the ultimate proof that going green is gaining more traction, as Tesla posted its first ever profit last quarter, and has seen its stock price more than double since April. While the quarterly profit was partially from selling its zero-emission credits, we have to remember a company like this wouldn't have found any success or profits a decade ago – and many still can't.

Bottom line
The fact is that green products and fuel efficiency is selling with consumers more than ever, and is beginning to contribute to the bottom line. When it comes to being successful in the automotive industry, it's all about flexibility, fuel efficiency, and popular designs. Many of the global automakers can now offer multiple engine sizes and flexible options for fuel efficiency, as well as EVs for the early adopters. It's no coincidence that during the surge in automotive sales, we see a surge in going green, as well. Finally, investors should start seeing a surge in contributions to the bottom line profits -- another welcome change.

Tesla's stock price has soared recently since April, but, as giant competitors are moving in to disrupt Tesla, will the company be able to fend them off? The Motley Fool answers this question and more in our most in-depth Tesla research available. Get instant access by clicking here now.

LeBron James Throws Instagram a Bone

Thursday was a big day for Facebook (NASDAQ: FB  ) and LeBron James. Earlier in the day, the social-media network operator announced that it was giving Instagram users the ability to upload video clips as long as 15 seconds to its fast-growing Instagram photo-sharing website. Later that night, James helped power the Miami Heat to its second consecutive NBA championship.

The fun didn't end there for either party. A few hours after clinching the NBA Finals victory -- repeating as MVP -- James uploaded a short video to Instagram's new platform. The playful yet expletive-saddled rant has naturally gone viral. As for Saturday morning, more than 373,000 Instagram users have shared the clip and another 42,000 people have commented on it.

Facebook couldn't have timed this any better. The stock failed to move higher on Thursday's announcement. It was a down day for the market, but investors failed to see this as anything else than an attempt by Facebook to drum up a response to Twitter's popular Vine platform that allows for six-second videos.

Now with a single viral upload on Friday, a lot of people now know that Instagram isn't just a place for snapshots.

Celebrities have a funny way of lifting a platform's visibility. Twitter was doing fine as a place for tech-forward folks to share short messages, but it really took off once entertainers took to pecking out 140-character missives. The same scenario played out in China with SINA's (NASDAQ: SINA  ) Weibo. The moment top athletes, rockers, and movie stars took to Weibo, it became the undisputed micro-blog of choice for the world's most populous nation.

At the peak of Linsanity, Jeremy Lin's Weibo account amassed millions of followers. Even some Western celebrities who don't have Twitter accounts have popular Weibo feeds. MediaBistro.com points out that Robert Downey Jr. is on Weibo but not on Twitter.

In short, don't underestimate Instagram's chances here. The site that had just 20 million active users when Facebook snapped it up early last year is now up to 130 million shutterbugs. A whopping 16 billion photos have been uploaded to the site, and now it's time to see whether short video clips will take Instagram to an even higher level or whether this will alienate its growing base.

It would be a bad idea to bet against Facebook. On Friday, UBS upgraded the stock to "buy" -- bumping its price target to $30 -- partly on the prospects of selling ads against the short videos. UBS expects Facebook to start slapping video ads on the clips during the latter half of this year, and if users accept the monetization, it could easily create millions in incremental annual revenue for Facebook.

Facebook shareholders who continue to see their stock trade well below last year's $38 IPO would love that. Why wait? Now the bulls can always take to Instagram with their own brief rants against the haters.

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A Fool Looks Back

Netflix (NASDAQ: NFLX  ) had a good week. It started when the company teamed up with DreamWorks Animation (NASDAQ: DWA  ) to expand their relationship, and it culminated in an announcement that the Netherlands will be its next expansion market for the leading video service.

The deal with DreamWorks Animation comes at an important time. Many young families are still venting about the Nickelodeon and Nick Jr. content that was removed from Netflix's streaming platform late last month. Offering 300 hours of original programming from DreamWorks Animation -- primarily in the form of new shows that the computer-animation studio will create based on its growing arsenal of characters -- will give young viewers more reasons to keep checking out Netflix by next year.

This is also an important evolutionary step at Netflix. Subscribers need to understand that, unlike optical discs, streaming licenses don't last forever. Content goes both ways, and Netflix has more often than not found a way to make it up to subscribers when popular shows leave its digital vault.

The other big move by Netflix was to announce that it will go Dutch later this year. Pushing into the Netherlands makes sense. Netflix now has more than 6 million subscribers for its streaming service outside the United States.

Yes, Netflix is still losing a lot money overseas, but its international operating loss narrowed in its latest quarter to the lowest that it's been in more than a year.

Keep those passport stamps coming, Netflix.

Briefly in the news
And now let's take a quick look at some of the other stories that shaped our week.

Nokia (NYSE: NOK  ) was the subject of not one, but two rumored buyout reports. Things have been rough for the handset giant in recent years, but sometimes a stock gets too cheap to ignore. Idenix Pharmaceuticals (NASDAQ: IDIX  ) shed 31% of its value on Friday, after the FDA requested more information on the biotech's preclinical hepatitis-C drug candidate. Indenix will need to address those concerns before moving on to the critical human trials. The payoffs are huge when a young biotech can get a treatment on the market, but the approval process isn't for the faint of heart. Microsoft (NASDAQ: MSFT  ) backtracked on some of the controversial Xbox One features that were introduced a week earlier. It will no longer require users to go online every 24 hours, and gamers will be able to keep selling or lending their disc-based games.

Now look ahead
The Motley Fool's chief investment officer has selected his No. 1 stock for this year. Find out which stock it is in the special free report: "The Motley Fool's Top Stock for 2013." Just click here to access the report and find out the name of this under-the-radar company.

Contrarian Commodity Traders Are Making a Big Mistake

 You can make a fortune in commodities buying when an asset has been "blown out" and left for dead.

 

That "contrarian" take allows you to buy cheap, safe assets.

 

Looking around these days, you might think coal producers qualify as a contrarian's commodity. For two years, the sector has been beaten bloody. Major coal producers are approaching their "end of the world" 2009 lows. How much worse can it get?

 

A lot worse. Now is not the time to buy. Let me explain...

 

 When you're talking about coal consumption here in the U.S., you're talking about electricity. In the early 2000s, the power sector used more than 90% of the coal produced in the country.

 

But electric power plants are using less coal... much less. In 2012, electric power plants consumed 824 million tons of coal. That's the lowest volume in 20 years. It's down 21% since its peak in 2007.

 

Coal's problem here is natural gas. As longtime readers know, natural gas is cheap, and we have plenty of it. The latest numbers show U.S. natural gas production is at an all-time high.

 

It's not that difficult for power plants to switch from coal to natural gas... In 2005, coal produced almost 50% of the country's power. Natural gas generated just 18%. In 2012, natural gas fueled a record 30%. Coal's contribution fell to 37%.

 

 In addition to reduced demand, coal producers are facing higher costs. New and proposed Environmental Protection Agency (EPA) regulations make operation and upgrading of coal plants very expensive.

 

Take the Big Sandy coal power plant in eastern Kentucky, for example. It consumes 2.5 million tons of coal per year. It would cost $1 billion to upgrade this plant to meet EPA regulations... But American Electric Power (AEP) plans to shut it down in 2015.

 

Collapsing demand is hurting coal prices. The benchmark Big Sandy Appalachian coal price has fallen 18% from its 2011 peak. And according to the Energy Information Administration (EIA), coal prices will remain where they are through 2014. But while coal prices are down and set to stay there, the costs of mining coal are as high as ever.

 

That's bad news for coal miners.

 

 Peabody (BTU) is the "ExxonMobil of coal"... It earned $3.55 per share in 2011. Last year, it reported a loss of nearly $3 per share. Shares have fallen from over $70 in 2011... to about $17 today. That's a massive 77% loss.

 

Peabody and its peers aren't just suffering a lack of U.S. demand. The global trends are against them, too... China accounts for over half of all the coal consumed in the world. Demand is still growing there, but the growth has slowed. And coal prices in Asia are down 30% from the 2011 peak.

 

You can see the global trend playing out in the Market Vectors Coal Fund (KOL). Some of its biggest holdings include U.S., Chinese, and Australian coal producers... along with companies like Joy Global, which makes mining equipment, and Westshore Terminals, a coal-shipping hub.

 

As you can see in the chart below, the big trend in KOL is down... and it just recently struck a new five-year low.

 

 

 A massive selloff like this might have you hunting in the "bargain bin" for great values. After all, the world is not going to stop burning coal altogether. It still accounts for a third of the U.S. power grid. And a billion Chinese folks still want to watch TV and chill their beer.

 

Eventually, coal will reach its "blown out and left for dead" bottom. It will offer traders a great setup (like the kind I think we have with uranium).

 

But right now, the fundamental picture is terrible, and it looks likely to stay that way for a while. The trend here is down... But there still hasn't been a massive "wash out" selling panic. It's not yet time to buy coal.

 

– Matt Badiali

Hewlett-Packard Creates New Executive Role to Enhance Growth

Hewlett-Packard (NYSE: HPQ  ) has made several changes among its executive management team in an effort to further growth in the fast-growing Chinese market, expand its global channel partnerships, and seek out "early stage companies that can contribute to HP's long-term growth," HP announced today.

Todd Bradley, formerly HP's executive vice president of Printing and Personal Systems (PPS), will retain his executive vice president title in leading the new Strategic Growth Initiatives unit. In his new role, Bradley will report directly to CEO Meg Whitman and be responsible for enhancing opportunities in China and strengthening channel relationships worldwide.

Regarding Bradley's new role, Whitman commented, "There's nothing more important to HP than our channel partners and the future of our business in China. I've also asked [Bradley] to study the landscape of small companies and start-ups that could partner with HP to spur growth."

Dion Weisler, current senior vice president of HP's PPS Asia Pacific and Japan (APJ) unit, will assume Bradley's former PPS responsibilities as executive vice president. In addition to leading the PPS division, Weisler will join HP's executive council, the company said.

HP announced another change within its executive management team, naming Nick Lazaridis to head up the PPS-APJ business unit, Weisler's former position, until a permanent replacement is found. Lazaridis is currently COO of Hewlett-Packard's PPS-APJ, in addition to leading the region's Personal Systems division.

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Hot Quality Companies To Invest In 2014

Chinese e-commerce giant Alibaba says it will partner with the Chinese government to fight against counterfeit goods on its websites.

Although Alibaba has worked with local and provincial officials before, it says this is the first time the company has cooperated comprehensively with the government at the national level.

Specifically, Alibaba will work with five agencies: �Ministry of Public Security, State Administration for Industry & Commerce, General Administration of Quality Supervision, State Intellectual Property Office, and General Administration of Press and Publication. The company said it will give these agencies greater access to Alibaba's Taobao Marketplace and Alipay data.

Alibaba says it aims to create "synergistic online and offline mechanisms" to identify and shut down factories and other sources of counterfeit goods partly by pairing information on the transactions on its websites with offline documents.

Hot Quality Companies To Invest In 2014: EntreMed Inc (ENMD)

EntreMed, Inc. (EntreMed), incorporated in 1991, is a clinical-stage pharmaceutical company. EntreMed's drug candidate is ENMD-2076, an Aurora A and angiogenic kinase inhibitor for the treatment of cancer. ENMD-2076 has completed Phase I studies in patients with advanced solid tumors, multiple myeloma and leukemia and is completing data for a multi-center Phase II study in patients with platinum resistant ovarian cancer. The Company�� other product candidates have includes MKC-1, ENMD-1198 and 2-methoxyestrdiol (2ME2, Panzem) for treatment of rheumatoid arthritis.

ENMD-2076 is a novel orally-active, Aurora A/angiogenic kinase inhibitor with potent activity against Aurora A and multiple tyrosine kinases linked to cancer and inflammatory diseases. ENMD-2076 is relatively selective for the Aurora A isoform in comparison to Aurora B. Aurora kinases are key regulators of the process of mitosis, or cell division, and are often over-expressed in human cancers. ENMD-2076 exerts its effects through multiple mechanisms of action, including anti-proliferative activity and the inhibition of angiogenesis. ENMD-2076 has demonstrated significant, dose-dependent preclinical activity as a single agent, including tumor regression, in multiple xenograft models (such as breast, colon, leukemia), as well as activity towards ex vivo-treated human leukemia patient cells.

Hot Quality Companies To Invest In 2014: Eaton Vance Limited Duration Income Fund (EVV)

Eaton Vance Limited Duration Income Fund is a closed-ended fixed income mutual fund launched and managed by Eaton Vance Management. The fund invests in the fixed income markets of the United States. It seeks to invest in the securities of companies operating across the diversified sectors. The fund invests in senior, secured floating-rate loans, mortgage-backed securities, and corporate bonds that are rated below investment grade quality, known as junk bonds with an average duration of 3.47 years and average quality BBB/BBB-. It benchmarks the performance of its portfolio against the S&P/LSTA Leveraged Loan Index, the Merrill Lynch U.S. High Yield Index, and the Barclays Capital U.S. Intermediate Government Bond Index. Eaton Vance Limited Duration Income Fund was formed on May 30, 2003 and is domiciled in the United States.

Hot Casino Stocks To Buy For 2014: Capital City Bank Group(CCBG)

Capital City Bank Group, Inc. operates as the bank holding company for Capital City Bank that provides commercial and retail banking products and services. Its deposit products include negotiable order of withdrawal accounts, money market accounts, checking and savings accounts, and time deposits. The company offers financing for commercial business properties, equipment, inventories, and accounts receivable, as well as commercial leasing and letters of credit; commercial and residential real estate lending; retail credit products, including personal loans, automobile loans, boat/recreational vehicle loans, home equity loans, and credit card programs; and tax-exempt loans, lines of credit, and term loans. It also provides treasury management services, merchant credit card transaction processing services, automated teller machines (ATMs), debit/credit cards, night deposit services, safe deposit facilities, PC/Internet banking, and mobile banking services. In addition, the c ompany offers asset management, trust, mortgage banking, merchant services, and data processing services, as well as securities brokerage services, including U.S. government bonds, tax-free municipal bonds, stocks, mutual funds, unit investment trusts, annuities, life insurance, and long-term health care. It serves individuals, corporations, and other business clients, including commercial developers and investors, residential builders and developers, community developers, state and local governments, public schools and colleges, charities, and membership and not-for-profit associations. As of January 27, 2012, the company operated 70 banking offices and 79 ATMs in Florida, Georgia, and Alabama. Capital City Bank Group, Inc. was founded in 1895 and is headquartered in Tallahassee, Florida.

Carlyle Group Buying Marelli Motori for $280.5 Million

Corporate holding company Carlyle Group (NASDAQ: CG  ) signed a deal to acquire a new subsidiary this week.

On Thursday, Carlyle announced it has agreed to buy Marelli Motori from Britain's Melrose Industries in a deal expected to close in August. Based in Italy, Marelli is one of the world's largest manufacturers of industrial generators and electric motors for the power generation, marine, oil & gas, and industrial manufacturing markets.

Explaining the purchase, co-head of Carlyle Europe Partners Marco De Benedetti said: "Marelli Motori is an outstanding Italian company that, thanks to the quality and competence of its management, has gone through a process of true internationalization enabling them to gain recognition and a strong market position in all of the major international markets in which they operate."

It's also a growing company, having increased annual revenues 12.5% in the most recent year, to $197.3 million in 2012. With Carlyle paying $280.5 million, this works out to a 1.4-times-sales ratio on the purchase.

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Why B of A Is Just Holding on Today

Bank of America (NYSE: BAC  ) is up healthily in the first hour of trading, after finishing up yesterday by a penny. So far, the rest of the Big Four and the major market indices are in the green, as well. After yesterday's sideways-trending market, it looks like B of A and company are solidly back into positive territory, but don't expect too much.

Waiting is the hardest part
There's a lot of general uncertainty in the markets right now, at home and abroad. The world is waiting to see when and how the Federal Reserve will dial back quantitative easing: the dollar-spigot widely believed to be behind America's nascent economic recovery, and a source of capital for emerging markets, as well.

The dialing back isn't just a question of if, but when: Ben Bernanke and company have made it clear that as the economy improves, the Fed will begin scaling back its monthly bond purchases, potentially as early as the next few months.

Regarding B of A itself, investors are waiting to hear the outcome of a trial currently under way in New York. The judge's decision will determine if an $8.5 billion settlement made in 2011 with Bank of New York Mellon (NYSE: BK  ) and bond giants BlackRock (NYSE: BLK  ) and PIMCO will stand, or if the superbank will suddenly find itself on the hook for potentially tens of billions more.

Foolish bottom line
Nothing too shocking has come out of said trial, except for the slightly eyebrow-raising revelation that B of A considered putting Countrywide Financial -- the business unit at the heart of the issue -- into bankruptcy. Regarding the trial itself, it's scheduled to end this Friday, but it's unlikely investors will get any breaking news from the judge soon. These things take time, and the stock may languish a bit until the situation is more clearly resolved.

As for uncertainty in the markets, it's hard to say when or if that's going to go away. There's no deadline to look forward to regarding the end of QE. When the Fed does begin dialing it back, there will undoubtedly be jolts as investors adjust. But QE couldn't have gone on forever. The idea was to get the country back to a normally operating economy after the financial crisis. We may be getting there, but it will mean change, and change scares people.

This all goes to show that's it's very difficult to pin down the exact cause or causes for the day-to-day movement of a stock, which is why here at The Motley Fool, we counsel investors to take a long-term view of investing. Tune out the market noise -- like the kind we're seeing today -- and tune into the fundamentals of the companies you're invested in. Your portfolio will thank you, even if your broker won't.

Looking for in-depth analysis on Bank of America?
Look no further than this Motley Fool premium report -- written by top Motley Fool banking analysts Anand Chokkavelu and Matt Koppenheffer. They'll help you lift the veil on the bank's operations, and give you three reasons to buy and three reasons to sell along the way. And with included quarterly updates, this could literally be the last bit of investment research on B of A you'll ever need. For immediate access, simply click here now. 

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Has KapStone Paper and Packaging Made You Any Real Money?

Hot High Tech Stocks To Own Right Now

Who is the biggest Medicare beneficiary? After an announcement by the Centers for Medicare and Medicaid Services, or CMS, on Friday, investors holding a handful of health care stocks can claim the honor.

While the market expected CMS to either cut Medicare payments or hold levels steady, it plans to actually increase reimbursements for hospitals -- and soften the blow of one dreaded part of the Patient Protection and Affordable Care Act, commonly referred to as Obamacare. The promise of more money from Medicare translated to more than $1.5 billion added to market caps for five top hospital stocks in just one day. Here's what happened.

No sequestration woes here
While the sequestration deal agreed upon by the president and Congress impacts several areas, Medicare payments will go up rather than down. Acute care hospitals will receive a 0.8% bump in reimbursement beginning in October.

Hot High Tech Stocks To Own Right Now: Petroleum Resources Corporation(PEO)

Petroleum & Resources Corporation operates as a nondiversified investment company. It primarily invests in the equity of energy and natural resource companies. The company also has investments in various sectors, including energy, services, basic industries, and paper and forest products. Petroleum & Resources was founded in 1929 and is based in Baltimore, Maryland.

Hot High Tech Stocks To Own Right Now: Energold Drilling Corp.(EGD.V)

Energold Drilling Corp., together with its subsidiaries, provides contract diamond drilling services to the mining and mineral exploration industries primarily in Mexico, the Caribbean, Central America, South America, Africa, and Asia. As of December 31, 2010, it owned fleet of 103 drilling rigs. The company also engages in the acquisition, exploration, development, and mining of mineral properties, primarily silver, lead, zinc, and gold properties located in Mexico and the Dominican Republic. In addition, it manufactures drilling rigs and associated equipment for water well, mineral exploration, and geotechnical drilling. Energold Drilling Corp. is headquartered in Vancouver, Canada.

Top 5 Casino Stocks To Invest In Right Now: Debao Property Development Ltd (K2M.SI)

Debao Property Development Ltd., an investment holding company, engages in the property investment, development, and management in the People�s Republic of China. It develops residential and commercial properties; and leases properties. The company builds structural projects and provides interior works for third parties; provides public utility engineering services; and engages in sale and distribution of construction materials. Debao Property Development Ltd. was founded in 2000 and is based in Foshan City, the People�s Republic of China.

Hot High Tech Stocks To Own Right Now: Cadan Resources Corporation(CXD.V)

Cadan Resources Corporation, an exploration stage company, engages in the exploration and development of precious and base metal properties in the Philippines. The company primarily explores for gold, silver, and copper minerals. Its principal property includes the T�Boli project consisting of 84.98 hectares located in the province of South Catabato, Mindanao Island. The company was formerly known as Sur American Gold Corporation and changed its name to Cadan Resources Corporation in August 2007. Cadan Resources Corporation was founded in 1929 and is headquartered in Vancouver, Canada.

Is Buying Microsoft Stock a Smart Health Care Play?

With health care comprising close to one-fifth of U.S. GDP, the industry's tentacles spread far and wide. Just as many companies that weren't considered technology companies in the past have essentially become technology companies, I think quite a few organizations that wouldn't typically be called health care companies qualify at least in part these days. Microsoft (NASDAQ: MSFT  ) , for example, falls in that group. But would buying Microsoft stock as a health care investment be smart? Let's take a look.

Window dressing?
Read through Microsoft's latest 10-K and 10-Q reports filed with the SEC. You'll find the same number of references to health care as you'll find animated paper clips in the company's products these days. (That would be zero, by the way.)

Microsoft's HealthVault is alive and kicking, unlike Google's abandoned personal health record offering. However, it seems likely that revenue generated from HealthVault amounts to nothing more than a rounding error for Microsoft's accountants.

If you check out Microsoft's website, you can find plenty of information about its products for health care. However, those products look strikingly similar to the company's products for the other 18 industry groups listed. That's because they are the same products used for those other industries.

On that same site, Microsoft uses the first person "we" in talking about the "health industry." The company presents itself as being part of health care, but is that just window dressing? Actually, I don't think so.

First, while the company doesn't report how much of its revenue stems from health care customers, my hunch is that it's a significant amount. Hospitals, physician clinics, skilled nursing providers, pharmaceutical companies, medical device makers, and many other health care organizations across the world use Microsoft's operating system, productivity applications, business intelligence software, database servers, and network servers.

I also suspect the revenue from health care is growing solidly. Microsoft general manager Craig Hodges stated earlier this year that no other industry is positioned to be as big in "big data" as health care. And that's big business that Microsoft is eyeing.

Blue chips ahoy
Perhaps one of the most telling signs of the importance to health care for Microsoft is that it has gotten out of health care -- sort of. Last year, the company joined forces with GE's (NYSE: GE  ) health care business unit in a 50-50 joint venture named Caradigm. Former Microsoft Health platform founder and current Avado.com CEO Dave Chase speculated that this move stemmed from Microsoft's desire to avoid upsetting large health care customers who could feel threatened by products developed by Microsoft.

If so, Caradigm could be a good way for Microsoft to have its cake and eat it, too. The joint venture combined two Microsoft products -- the Amalga health intelligence platform and Vergence single-sign-on and and context management solution -- along with GE Healthcare's eHealth health information exchange product and Qualibria clinical application.

While it's still a young enterprise, Caradigm has already seen some successes. The company announced recently that it reached the milestone of 1 million caregivers using its identity and access management solutions. Caradigm also entered the United Kingdom market in April. 

Foolish take
Microsoft should be in position to benefit from the expansion of technology in health care. Its joint venture with GE Healthcare enables the company to profit from new products while not alienating existing and new core customers. I think Microsoft stock could reasonably be viewed as a quasi-health care investment.

That doesn't necessarily make it a smart health care play, though. On the positive side, there's a nice 2.7% dividend and nearly $74 billion of cash and cash equivalents. On the negative side, the stock is near its five-year high with analysts projecting single-digit revenue growth over the next few years. My view is that there are better choices right now than buying Microsoft stock -- as a health care investment or otherwise.  

The last several years have been a frustrating path for Microsoft investors, who've watched the company fail to capitalize on the incredible growth in mobile over the past decade. However, with the release of its own tablet, along with the widely anticipated Windows 8 operating system, the company is looking to make a splash in this booming market. In a new premium report on Microsoft, a Motley Fool analyst explains that while the opportunity is huge, so are the challenges. The report includes regular updates as key events occur, so make sure to claim a copy of this report now by clicking here.

A Closer Look at 5 FTSE Boardrooms

LONDON -- Management can make all the difference to a company's success -- and thus its share price.

The best companies are those run by talented and experienced leaders with strong vested interests in the success of the business, held in check by a board with sound financial and business acumen. Some of the worst investments to hold are those run by executives collecting fat rewards as the underlying business goes to pot.

In recent weeks, I've assessed the boardrooms of five companies within the FTSE 100: Admiral Group (LSE: ADM  ) , Babcock International (LSE: BAB  ) , Capita (LSE: CPI  ) , InterContinental Hotels (LSE: IHG  ) and Legal & General (LSE: LGEN  ) .Today I am going to summarize what I found.

Five FTSE boardrooms
I analyze management teams from five different angles, giving each a score out of five to make a maximum score of 25. Here's my overall assessment:

Company 

Reputation

Performance

Composition

Admiral	4	5	3
Babcock	3	5	4
InterContinental Hotels	4	3	3
Legal & General	3	3	3
Capita	3	3	1

 

Company

Remuneration

Shareholdings

Overall
Score

Admiral	4	4	20
Babcock	3	5	20
InterContinental Hotels	3	4	17
Legal & General	3	4	16
Capita	3	3	13

A tale of two start-ups
Admiral is one of those few companies that have grown from a start-up to an FTSE 100 member under the same management. CEO Harry Engelhardt and chief operating officer David Stephens were both in at the beginning in 1993. They have below-market remuneration and multimillion-pound shareholdings to align their interests with investors. A well-qualified chairman and nonexecutive team provide checks and balances to the entrenched management.

Like Admiral, public-sector outsourcer Capita grew from a start-up to an FTSE 100 company with members of the current management, but the similarity stops there. The CEO and finance director have been with the company since its formation in the 1980s, though the company lost founder Sir Rodney Aldridge in 2006 when it emerged that he had secretly lent £1 million to the Labor Party.

Whereas Admiral has established the best of corporate-governance practices, Capita contravenes the Governance Code by having a majority of executive directors, which it justifies by the "complexity" of its business. It previously had an executive chairman and appointed a nonexec from the executive ranks. Perhaps it's no coincidence that Capita's directors have few cross-directorships with other FTSE boards.

Ten-bagger
Babcock has a relatively long-serving CEO. Peter Rogers has been at the helm since 2003. He has grown the company organically and through acquisition, increasing the market cap from £150 million to £4 billion and multiplying the share price 10 times. It's a clever board, with the four executives having respective qualifications in accountancy, surveying, engineering, and law. With half its business coming from the Ministry of Defense, the presence of the former U.K. Security and Intelligence Coordinator must be a great help.

InterContinental Hotels' CEO has only been in the role since 2011 but has worked for the company and its predecessors since 1992 and was finance director for eight years. He looks a safe pair of hands, but the chairman and other executives are also relatively new in their current roles. The executives have substantial shareholdings.

Legal & General has announced a new management structure since my review last week. It has appointed one of the divisional directors to the finance director vacancy. However, the CEO has only been in the role since June of last year, having been finance director previously, and his overseas expansion strategy has yet to be tested. The board is almost entirely composed of people with finance-sector or finance-director backgrounds.

I've collated all my FTSE 100 boardroom verdicts on this summary page, and you can read more by following the individual company links.

Buffett's favorite FTSE share
Legendary investor Warren Buffett has always looked for impressive management teams when picking stocks. His recent acquisition, Heinz, has long had a reputation for strong management. Indeed, Buffett praised its "excellent management," as well as its high-quality products and continuous innovation.

So it's important to tell you about the FTSE 100 company in which the billionaire stock-picker has a substantial stake. A special free report from The Motley Fool -- "The One U.K. Share Warren Buffett Loves" -- explains Buffett's purchase and investing logic in full. And Buffett, don't forget, rarely invests outside his native United States, which makes this British blue chip -- and its management -- all the more attractive. So why not download the report today? It's totally free and comes with no further obligation.

10 Best Consumer Stocks To Watch For 2014

Warren Buffett knows what he likes -- and he gets what he likes. While he is widely known for investing in consumer product companies, another industry has also captured his attention and his money. Here are three things Buffett really likes about health care.

1. Keep it simple
Buffett likes to keep things simple and understand the business before he buys. DaVita Healthcare Partners (NYSE: DVA  ) is a great example of this desired simplicity. The company provides dialysis services for patients with chronic kidney disease or end stage renal disease. Patients with these diseases can't survive without dialysis. DaVita provides the service. It doesn't get much more simple than that.

Buffett's Berkshire Hathaway (NYSE: BRK-B  ) owns 14% of DaVita, valued at more than $1.9 billion and growing. The stock has a one-year return of nearly 34%.Keeping it simple can pay off.

10 Best Consumer Stocks To Watch For 2014: Clearwater Paper Corporation (CLW)

Clearwater Paper Corporation manufactures and sells pulp-based products in the United States and internationally. The company operates in two segments, Consumer Products, and Pulp and Paperboard. The Consumer Products segment provides consumer private label tissue products, including bathroom tissue, household paper towels, napkins, and facial tissues. It also manufactures away-from-home tissue, parent roll tissue, machine-glazed tissue, and foam products; and absorbent products, as well as recycled fiber value grade products. This segment sells its products through sales force to grocery, mass merchant, drug, and discount stores. The Pulp and Paperboard segment offers bleached paperboards, lightweight bleached bristols, folding carton boards, liquid packaging paperboard, cup stock and plate stock paperboard, and products for commercial printing applications. This segment sells its products to packaging converters through sales offices; and to commercial printers through d istribution. The company is headquartered in Spokane, Washington.

10 Best Consumer Stocks To Watch For 2014: Rite Aid Corp (RAD)

Rite Aid Corporation, incorporated in 1968, is a retail drugstore chain in the United States. As of March 3, 2012, the Company operated drugstores in 31 states across the country and in the District of Columbia. As of March 3, 2012, it operated 4,667 stores. In the Company�� stores, it sells prescription drugs and a range of other merchandise, which it calls front end products. During the fiscal year ended March 3, 2012 (fiscal 2012), prescription drug sales accounted for 68.1% of its total sales. The Company carries a range of front end products, which accounted for 31.9% of its total sales in fiscal 2012. Front end products include over-the-counter medications, health and beauty aids, personal care items, cosmetics, household items, beverages, convenience foods, greeting cards, seasonal merchandise and other everyday and convenience products, as well as photo processing. It offers a variety of products under its private brands, which contributed approximately 17% of its front end sales in the categories where private brand products were offered in fiscal 2012. As of March 3, 2012, the Company had opened over 2,100 GNC stores-within-Rite Aid-stores. During fiscal 2012, the Company sold two owned operating stores to independent third parties.

During fiscal 2012, its stores filled approximately 295 million prescriptions and served an average of 2.1 million customers per day. The overall average size of each store in its chain is approximately 12,600 square feet. As of March 3, 2012, 60% of its stores were freestanding; 51% of its stores included a drive-thru pharmacy; 24% included one-hour photo shops, and 46% included a GNC store-within-Rite Aid-store. The Company�� customers may also order prescription refills over the Internet through www.riteaid.com, or over the phone through its telephonic automated refill systems for pick up at a Rite Aid store. It has a strategic alliance with GNC, a retailer of vitamin and mineral supplements.

Top High Dividend Companies To Invest In Right Now: Origin Agritech Limited(SEED)

Origin Agritech Limited, an agricultural biotechnology company, specializes in the research, development, production, sale, and distribution of crop seeds. Its seed products include corn, rice, cotton, and canola. The company is also involved in hybrid seed technology development and agricultural chemical production. Origin Agritech distributes its products to farmers through first level and second level distributors, and retailers in the People's Republic of China, southeast Asia, and the Middle East. The company was founded in 1997 and is headquartered in Beijing, the People?s Republic of China.

10 Best Consumer Stocks To Watch For 2014: Halma(HLMA.L)

Halma p.l.c., engages in the development, production, and sale of hazard and life protection products. The company?s Infrastructure Sensors segment offers fire and smoke detectors, audible/visual warning devices, elevator/lift door safety sensors, emergency communication devices, displays and control panels for elevators, automatic door sensors, and security sensors. Its Health and Analysis segment provides components and products used to enhance personal and public health, which include photonics, a technology that generates, measures, and conditions light, and analyzes the interaction of light with substances; and health optic devices to assess eye health, diagnose disease, and assist with eye surgery, as well as diagnostic devices for general medical applications. This segment also offers fluid technology products, such as pumps, probes, valves, connectors, and tubing used by scientific, environmental, and medical diagnostic instrument manufacturers for fluid handling applications; and devices to monitor and find leaks in underground water pipelines, as well as offers UV technology for disinfecting and treating water. The company?s Industrial Safety segment provides bursting disk devices to protect vessels and pipe work in process industries; mechanical, electrical, and electromechanical safety interlocks; gas detection instruments and fixed systems to detect flammable and hazardous gases; and asset monitoring products to monitor the condition of physical assets, such as oil pipelines and telecommunication cables, as well as vessel and harbor security, using sensors and communication technologies. Halma p.l.c. markets its products and services primarily in the United Kingdom, the United States, Mainland Europe, the Asia Pacific and Australasia, Africa, and the Middle East. The company was founded in 1894 and is headquartered in Amersham, the United Kingdom.

10 Best Consumer Stocks To Watch For 2014: MOD-PAC CORP.(MPAC)

MOD-PAC Corp. designs, manufactures, and markets folding cartons, stock packaging, and print products in the United States and Canada. It provides custom folding cartons for customers in the healthcare, confectionary, food and food service, and automotive industries, including private label manufacturers. The company also sells stock packaging products, including a collection of candy boxes and gourmet bags, and trays and other complementary items for the independent confectionary industry through distributor networks and on direct basis, as well as provides retail packaging solutions for gift retailers and general consumer use. In addition, it produces and markets various customized products, including invitations, napkins, announcements, bags, boxes, and various accessory product line for various social occasions, such as corporate events, weddings, bar/bat mitzvahs, graduations, and anniversaries. The company offers its customized products to corporate and consumer mark ets through retailers, including bridal and gift shops, and branded Internet Web resellers, as well as through the partybasics.com and myweddingbasics.com Websites, and retail outlet store located in its facilities. Further, it provides design assistance, finishing, and digital asset management services. MOD-PAC Corp. was founded in 1881 and is headquartered in Buffalo, New York.

10 Best Consumer Stocks To Watch For 2014: China Kangda Food Company Ltd (P74.SI)

China Kangda Food Company Limited, through its subsidiaries, engages in the production, processing, sale, and distribution of food products in China. The company is involved in the production and trading of food products; breeding and sale of livestock and poultry; development and sale of rabbits; planting and sale of vegetables; testing and checking of livestock; feed processing; sale of feed products; and provision of guarantee services. It provides chilled and frozen rabbit meat; chilled and frozen chicken meat; processed foods, including instant soup, curry food, chicken based cooked products, roasted rabbit food, meatballs, de-oxygenated consumer packed chestnuts, and seafood; and other products, such as pet food, dehydrated vegetables, poultry, rabbit organs, fruits, dried chili, pig liver, and seasoning products. The company distributes its products in 26 provinces and 30 cities in the People�s Republic of China and exports to approximately 20 countries and cities, including Japan, the United Arab Emirates, and various countries in the European Union. China Kangda Food Company Limited was founded in 1992 and is headquartered in Qingdao, the People�s Republic of China.

10 Best Consumer Stocks To Watch For 2014: Sony Corp Ord(SNE)

Sony Corporation designs, develops, manufactures, and sells electronic equipment, instruments, and devices for consumer, professional, and industrial markets worldwide. The company offers consumer products and devices, including televisions, video cameras, compact digital cameras and interchangeable single-lens cameras, Blu-ray Disc players/recorders, DVD-video players/recorders, home theaters and audio systems, and portable audio and car audio products. It also provides charged coupled devices, complementary metal-oxide semiconductor image sensors, system LSIs, small- and medium-sized LCD panels, and other semiconductors; and components, such as batteries, optical disk drives, chemical products, audio/video/data recording media, storage media, and optical pickups. In addition, the company develops, produces, markets, and distributes games, such as PlayStation3, PlayStation Portable, and PlayStation 2 hardware and related software; and PCs and flash memory digital audio pl ayers, as well as manufactures broadcast- and professional-use products, Blu-ray discs, DVDs, and CD discs. Further, it produces and distributes motion pictures and television programs, and home entertainment; creates and distributes digital content; operates television networks and studio facilities; and develops entertainment products, services, and technologies. Additionally, the company engages in the music publishing business, as well as provision of various financial services, including insurance, savings products, loans, and credit financing services; and a network service business and an advertising agency business. It also involves in research, development, design, production, marketing, sales, distribution, and servicing mobile phones, accessories, services, and applications. The company was formerly known as Tokyo Tsushin Kogyo Kabushiki Kaisha and changed its name to Sony Corporation in 1958. Sony Corporation was founded in 1946 and is based in Tokyo, Japan.

Advisors' Opinion:

• [By Carlson]

  Sony Corporation (SNE) has been downgraded by TheStreet Ratings from hold to sell. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity, poor profit margins, weak operating cash flow, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.

  Sony Corporation designs, develops, manufactures, and sells electronic equipment, instruments, and devices for consumer, professional, and industrial markets worldwide. The company has a P/E ratio of 5.9, below the S&P 500 P/E ratio of 17.7. Sony has a market cap of $20.8 billion and is part of the consumer goods sector and consumer durables industry. Shares are down 44.4% year to date as of the close of trading on Wednesday.

10 Best Consumer Stocks To Watch For 2014: China Zenix Auto International(ZX)

China Zenix Auto International Ltd. , an investment holding company, engages in the research, development, production, and sale of commercial vehicle wheels to after market and original equipment manufacturer market in the People?s Republic of China. It offers approximately 80 series of tubed steel wheels, 70 series of tubeless steel wheels, and 80 series of off-road steel wheels. The company markets its products under Zhengxing, Zhengxing Prince, Haixia, Zhengchang, Lianxing, and CZX brands. China Zenix Auto International Ltd. sells its products directly and through distributors. It also exports its products to 30 countries worldwide, including Indonesia, Malaysia, and Thailand. The company was formerly known as Richwheel Limited and changed its name to China Zenix Auto International Ltd. in November 2010. The company was founded in 2003 and is headquartered in Zhangzhou, China.

10 Best Consumer Stocks To Watch For 2014: Packaging Corporation of America(PKG)

Packaging Corporation of America produces and sells containerboard and corrugated products in the United States. Its corrugated packaging products, include conventional shipping containers used to protect and transport manufactured goods; and multi-color boxes and displays with strong that help to merchandise the packaged product in retail locations. The company also offers meat boxes and wax-coated boxes for the agricultural industry. Packaging Corporation sells its products through direct sales and marketing organization. The company was founded in 1867 and is headquartered in Lake Forest, Illinois.

10 Best Consumer Stocks To Watch For 2014: Leapfrog Enterprises Inc(LF)

LeapFrog Enterprises, Inc. designs, develops, and markets technology-based learning platforms and related proprietary content primarily for infants and children worldwide. The company offers interactive reading systems, such as the Tag reading system that focuses on fundamental reading skills and offers a library of software-based books; and Tag Junior reading system used for the introduction of younger children to books and reading. It also provides mobile learning system products, including Leapster platform, a handheld device with a multi-directional control pad and a touch-screen enabled by a built-in stylus; Leapster2 platform, a Web-connected version of Leapster; and Leapster Explorer to download digital content, such as games, e-Books, videos and flash cards. In addition, the company offers Scout collection, a line of learning toys that are Web-enabled and connect to the Learning Path; and My Own Leaptop, a Web-enabled customizable laptop; Fridge Collection, a line of magnetic learning toys that introduce letter names, letter sounds, spelling, and songs; Learn and Groove Collection, which include bilingual musical learning toys; and various products that address basic learning needs and milestones. Further, it provides LeapFrog Learning Path, an online tool enabling parents to track what their children are learning with Web-connected products; and LeapWorld, which allows children to play online games, customize their mobile learning and gaming experiences, access new content, watch trailers for new games, and view demonstrations. It sells its products directly to national and regional mass-market and specialty retailers; other retail stores and distributors; school-related distributors and resellers; and through online store and other Internet-based channels. The company was founded in 1995 and is headquartered in Emeryville, California. LeapFrog Enterprises, Inc. is a subsidiary of Mollusk Holdings, LLC.

Rising Interest Rates Won't Drive Insurers Away From The Market

With the speculation over changes in Fed policy driving a lot of the activity in the market these days, it's important for investors to know how rising interest rates will effect various companies. With interest rates playing a central role in the business model for insurance companies, AIG (NYSE: AIG  ) Berkshire Hathaway's (NYSE: BRK-B  ) Geico, Allstate (NYSE: ALL  ) , and other insurers may be anxious to get back to a normalized rate environment.

In the video below, Motley Fool contributor Jessica Alling discusses high-level changes the insurers might face and how long-term investors should be approaching the oncoming transition.

Solid companies selling at depressed prices have consistently helped generations of the world's most successful investors preserve capital, minimize risk, and achieve long-term, market-trampling returns. For one such company, read our free report: "The One REMARKABLE Stock to Own Now." Just click here to get started.

Stay Away From "Seriously?!" Stocks

A bull market makes investors feel great. Awesome returns across the stock universe can make everybody feel like a genius, and that investing in stocks -- even fairly indiscriminately -- is a sure bet.

Feel-good times create a problem that's easy to overlook. Take a close look at quite a few stocks these days and many companies' stock prices have little or nothing to do with actual business quality or financial success.

Beware the stocks for which common sense dictates the following response: "Seriously?!"

Huh?
Best Buy (NYSE: BBY  ) comes to mind as one of the high-profile examples. The stock has skyrocketed in recent months, and that's despite the fact that there's no real proof of a turnaround in sight.

The electronics giant's most recent quarter should have been viewed as a major disappointment. Sales and profit dropped, as did same-store sales. It's losing ground fast. However, the stock has surged by 36% in the trailing-52-week period, with most of the gain having taken place in the last several months.

Maybe some investors are heartened by recent news about Microsoft stores-within-stores, as well as Samsung's entry into Best Buy outlets. However, I'd question such assumptions as all that helpful to growth for Best Buy. For example, Microsoft's cool cachet doesn't hold up to a company like Apple. And if customer traffic's dragging, even an enhanced experience will mean little  anyway.

What?
Conn's (NASDAQ: CONN  ) is another denizen of the electronics retailing space and adds furniture and appliances to its offerings. The insane trajectory of Conn's share price is quite frankly mind-boggling. The stock has more than doubled in the course of the last 12 months.

The eyebrow-raising aspects go beyond the simple fact that this consumer segment isn't an easy one, especially taking into account the renowned "showrooming" effect that drives customers to Amazon.com (NASDAQ: AMZN  ) .

Conn's direct lending to its customers differentiates it from rivals -- and makes it riskier, too. Last year, it financed 71% of its retail sales. According to Conn's most recent Form 10-K, the majority of its customers had credit scores between 500 and 650, below the score considered a very good credit history. Those who don't make the grade can take advantage of rent-to-own arrangements. According to Conn's 10-K risk factors, many of its borrowers would be considered "subprime." That should ring a bell, and not in a good way.

Lending and consumers' ability to actually pay back borrowings is a significant factor. The possibility of rising interest rates and continued pressures on consumers in the real economy creates uncertainty that Conn's skyrocketing growth is wired to last. Conn's growth is being financed, its stock is on borrowed time, and like the market rally, that party looks destined to come to a screeching halt.

In other words: Seriously?
Those who invested in Netflix (NASDAQ: NFLX  ) at its 52-week low of $53 must be feeling pretty good right about now. Too bad the stock's valuation is currently insane.

Netflix's current forward price-to-earnings ratio is 65. High price-to-earnings ratios can sometimes be justified if investors believe growth expectations are far too low at the moment. However, I don't see any reason to argue in favor of high growth rates for Netflix right now.

Bulls loved today's announcement that Netflix and DreamWorks have made a major deal for original content, but Netflix still has Amazon breathing down its neck. Amazon tends to get a lot of the hottest new programming before Netflix's streaming service does, and at some point, consumers will tire of a service that often doesn't carry the content they desire.

Netflix head Reed Hastings may have talked up "binge viewing" in recent months, and although I've indulged in that behavior using Netflix once in a while, it's usually for very old shows. When it comes to the hottest shows that I've wanted to catch up with now, to talk to friends about -- Game of Thrones being the most recent example -- I've had to turn to Amazon. I doubt I'm the only one.

The Netflix of yore differentiated itself with its new offerings as well as a back catalog of great content on DVD. Back in those days, it put Blockbuster to shame when it came to breadth and depth of content. In the streaming world, it's been much more difficult for Netflix to offer a product that's so positively positioned compared to rivals. The new Netflix will not be the strong grower it used to be.

Netflix's current price makes it a "Seriously?!" stock.

Gearing up for serious pain
Bull markets make investors happy, but that can be a huge problem. Investors should be more careful than ever when they're searching for solid long-term investments when every stock seems to be heading for the skies. 

The examples I've chosen above have a common thread: Amazon's threat. Amazon's actually a more rational stock, despite its forward price-to-earnings ratio of 84, (which is only a tad higher than that of Netflix). Its entire business is far more diversified, adding security. It doesn't have to pull off a turnaround or offer its customers credit to buy its products. In fact, it has a slew of very loyal customers through its Amazon Prime service, which makes it the logical consumer choice for many people right off the bat.

Generally, it's a crucial time to assess stocks and make sure their returns haven't been juiced despite very little true business quality or financial success. Long-term investors who have seen the market's ups and downs and propensity for near-term insanity would say, "Seriously?!" about many stock prices today. When the party's over, many investors could end up in a world of hurt. Seriously.

Can Netflix fend off its burgeoning competition, and will its international growth aspirations really pay off? These are must-know issues for investors, which is why The Motley Fool has released a premium report on Netflix. Inside, you'll learn about the key opportunities and risks facing the company, as well as reasons to buy or sell the stock. The report includes a full year of updates to cover critical new developments, so make sure to click here and claim a copy today.

Microsoft Stock Needs a Little Help From Its Friends

Microsoft (NASDAQ: MSFT  ) turned heads last week with its move to open 500 stores inside Best Buy (NYSE: BBY  ) locations this summer. Microsoft stock didn't get the kind of bubbly reception that Best Buy shares received on the news, but it's still a smart move for both companies.

However, a quick look at Microsoft's ad promoting the venture shows that Microsoft doesn't feel as if its brand is enough. 

In this video, longtime Fool contributor Rick Munarriz explains why Netflix (NASDAQ: NFLX  ) , Barnes & Noble (NYSE: BKS  ) , and even Amazon.com (NASDAQ: AMZN  ) are featured brands in the Microsoft mini-store ad. This is a humbler Mr. Softy than we've seen before, and that may ultimately pay off for Microsoft stock.

The titans of tech
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.

Editor's note: The video refers to Audible as an "e-book reader." It's actually a provider of audiobooks and other spoken audio programming.

These Stocks Overcame the Dow's Triple-Digit Drop

You used to be able to count on the bull-market mentality to pull a sagging market up by the end of the trading day. Lately, though, that old trend has reversed itself, with stocks become increasingly weak as the day goes on. Coming into the weekend, it seemed as though short-term traders didn't want to hold onto stocks in advance of a key Federal Reserve meeting next week. By the close, the Dow Jones Industrials (DJINDICES: ^DJI  ) had fallen 106 points, closing the week with a level of volatility that has been unusual in recent months, but which has started to pick up more recently.

A few Dow stocks managed to defy the decline and post modest gains. The big winner on the day was Verizon (NYSE: VZ  ) , which climbed almost 1% on the day. As Fool contributor Travis Hoium noted earlier today, one of the biggest issues facing Verizon is expanding its available wireless spectrum in order to allow its network to function more effectively and broadly. With the government having worked to ensure that smaller carriers get equal access to the spectrum that Verizon and rival AT&T have gotten, investors have been concerned that the big companies might get shut out of future spectrum auctions. Today, though, the White House ordered various government agencies to try to come up with ways to free up more spectrum for wireless companies, a move that could prove to be to Verizon's benefit.

One surprising minor winner today was Home Depot (NYSE: HD  ) , which finished up just 0.1%. Housing is at the epicenter of the economic uncertainty we've seen lately, as rising mortgage rates have already spurred concerns about whether the recovery in the housing market will withstand homebuyers having to make larger monthly payments. Yet, at least for now, good news from a number of other home-related retailers, especially the high-end home furnishings business, have investors remaining confident that Home Depot can continue to use its competitive advantage to remain a leader in the industry.

Finally, big-pharma giants Merck (NYSE: MRK  ) and Pfizer (NYSE: PFE  ) both posted modest gains today. Merck announced that it would cut some jobs at its research laboratories, with an emphasis on trying to get drug candidates through the approval process in a more streamlined way. Yet, both companies have an amazing opportunity in the emerging markets, and with bond rates having eased downward today, dividend-paying stocks, in general, were among the better performers after their recent slumps.

This titan of the pharmaceutical industry stumbled into 2013, and continues to battle patent expirations and pipeline problems. Is Merck still a solid dividend play, or should investors be looking elsewhere? In a new premium research report on Merck, The Fool tackles all of the company's moving parts, its major market opportunities, and reasons to both buy and sell. To find out more, click here to claim your copy today.

Embraer May Land Multibillion-Dollar E-Jets Sale to ILFC

Natural Resource Partners to Expand in the Bakken

With steam coal prices continuing to be weak due to the inroads made by natural gas, Natural Resource Partners (NYSE: NRP  ) has decided if you can't beat 'em, join 'em. It announced Monday it is buying producing oil and gas properties located in the Williston Basin of North Dakota and Montana from Abraxas Petroleum (NASDAQ: AXAS  ) for $35.3 million in cash.

Natural Resource Partners has entered into a definitive agreement to purchase non-operated working interests in approximately 120 producing wells as well as interests in 22 wells that are in various stages of development.

Noting the acquisition adds diversity to NRP's revenue stream, Natural Resource Partners President and COO Nick Carter said, "This acquisition marks NRP's strategic entry into the Bakken play and into owning non-operated working interests in oil and gas assets."

The acquisition consists of approximately 13,500 net acres "that are held by production with an estimated average working interest of 11% in the Bakken/Three Forks play." The deal will have an effective date of March 1, but is expected to close in the third quarter and will be immediately accretive to NRP's unitholders.

Natural Resource Partners anticipates funding $8.1 million in additional capital expenditures associated with the new wells this year, which will partially be paid for at closing. NRP is primarily in the business of owning and managing coal, aggregate, and oil and gas reserves across the United States that generate royalty income for the partnership.

Abraxas said it will use the proceeds from the sale to pay off debt and to "accelerate growth in the company's core areas." inclusive of the non-operated Bakken sale, Abraxas says it has divested approximately 502 boepd for gross proceeds of $47.3 million since the beginning of 2013.

link

Top 5 Clean Energy Stocks To Invest In Right Now

There are many countries across the globe that utilize natural gas as transportation fuel. Argentina and Iran are among the world leaders. It is a trend that hasn't really picked up in the U.S. -- until now.

Natural gas is too cheap and too useful to ignore, and it is making inroads in the world of long-distance trucking. In this video, Fool.com contributor Aimee Duffy talks about the efforts of UPS (NYSE: UPS  ) and Wal-Mart (NYSE: WMT  ) �to take advantage of this growing movement.

The movement toward alternative energy is gaining momentum. One potential opportunity in this field is Clean Energy Fuels, which focuses its natural gas efforts primarily on trucking and fleets. It's poised to make a big impact on an essential industry. Learn everything you need to know about Clean Energy Fuels in The Motley Fool's premium research report on the company. Just click here now to claim your copy today.

Top 5 Clean Energy Stocks To Invest In Right Now: Pepsico Inc.(PEP)

PepsiCo, Inc. engages in the manufacture, marketing, and sale of foods, snacks, and carbonated and non-carbonated beverages worldwide. The company operates in four divisions: PepsiCo Americas Foods (PAF); PepsiCo Americas Beverages (PAB); PepsiCo Europe; and PepsiCo Asia, Middle East, and Africa (AMEA). The PAF division offers Lay?s and Ruffles potato chips, Doritos and Tostitos tortilla chips and dips, Cheetos cheese flavored snacks, Fritos corn chips, Quaker Chewy granola bars, and SunChips multigrain snacks in North America; Quaker oatmeal, Aunt Jemima mixes and syrups, Cap?n Crunch cereal, Quaker grits, and Life cereal, as well as Rice-A-Roni, Pasta Roni, and Near East side dishes in North America; and various snack foods under Doritos, Marias Gamesa, Cheetos, Ruffles, Emperador, Saladitas, Sabritas, and Lay?s brands in Latin America. The PAB division provides carbonated soft drinks, beverage concentrates, fountain syrups, and finished goods under Pepsi, Mountain Dew, Gatorade, 7UP, Tropicana Pure Premium, Electropura, Sierra Mist, Epura, and Mirinda brands; ready-to-drink tea, coffee, and water products through joint ventures with Unilever and Starbucks; and sells concentrate to authorized bottlers, and branded finished goods directly to independent distributors and retailers. This division also manufactures third-party brands, such as Dr Pepper, Crush, Rock Star, and Muscle Milk. The PepsiCo Europe division offers Frito Lay Snacks, Pepsi-Cola beverages, Gatorade sports drinks, Tropicana juices, and Quaker foods in Europe. The AMEA division provides snack food under the Lay?s, Kurkure, Chipsy, Doritos, Smith?s, Cheetos, Red Rock Deli, and Ruffles brands; Quaker-brand cereals and snacks; and beverage concentrates, fountain syrups, and finished goods under the Pepsi, Mirinda, 7UP, and Mountain Dew brands. PepsiCo, Inc. was founded in 1898 and is headquartered in Purchase, New York.

Advisors' Opinion:

• [By Steven Goldberg]

  PepsiCo (PEP, $82.51, 2.6%) will likely never catch up with number one Coca-Cola (KO) in the soft drink business, but it is the dominant player globally in salty snacks. Brands include Lay's, Ruffles, Doritos, Cheetos and Tostitos, not to mention Quaker Oatmeal, Rice-a-Roni, Gatorade and Tropicana. The stock trades at a somewhat pricey 17 times estimated year-ahead earnings.

• [By Chuck]

  PepsiCo Inc. is a strong defensive play with steady and stable growth and dividend yield. It provides investors with a place to park low-risk capital.

  The stock has had a tight trading range in the last year. It is extremely liquid and has a liquid options market.

  Let’s buy our exposure while the market is weak overall, but use the market to help average into this one. If you want to invest 3% of your low-risk portfolio, let’s buy 2% at market now.

  For the last third, let’s put in a limit order at 5% below your first fill.

  Pepsi also makes a great covered-call vehicle. The stock is not going to run away from us if we cap our near-term upside, and if it did, we can always repurchase it on weakness.

• [By ETF Authority]

  Unlike its competitor, PepsiCo has a large exposure to the food industry. This has helped the company generate strong performance over the past decade versus Coca-Cola. I personally prefer the taste of Coke over Pepsi, however, and many consumers seem to have similar taste buds. PepsiCo tends to make large acquisitions, which have worked so far. Sometimes it tends to overpay them, like the recent acquisition of Wimm-Bill-Dann. PepsiCo is cheaper than Coca-Cola, and both have similar near-term prospects.

Top 5 Clean Energy Stocks To Invest In Right Now: Strayer Education Inc (STRA)

Strayer Education, Inc. provides post-secondary education services. The Company offers a range of academic programs through its wholly owned subsidiary Strayer University, Inc. (the University), both in classroom courses and online via the Internet. Strayer University is an institution of higher learning that offers undergraduate and graduate degree programs in business administration, accounting, information technology, education, health care, public administration and criminal justice at 92 physical campuses in Alabama, Arkansas, Delaware, Florida, Georgia, Illinois, Indiana, Kentucky, Louisiana, Maryland, Mississippi, New Jersey, North Carolina, Ohio, Pennsylvania, South Carolina, Tennessee, Texas, Utah, Virginia, West Virginia, Wisconsin, and Washington, D.C., and online. As of December 31, 2011, the Company had opened 78 of its campuses. The Company has also developed a robust online education program.

Strayer University offers business, information technology and professional-oriented curricula to equip students with specialized and practical knowledge and skills for careers in business, industry and Government. Its Academic School Deans and Program Curriculum Committees regularly review and revise the University�� course offerings to improve the educational programs and respond to changes in job markets. Strayer University offers graduate programs in Master of Business Administration (M.B.A.); Jack Welch Executive Master of Business Administration (M.B.A.) Degree; Master of Education (M.Ed.) Degree;Master of Health Services Administration (M.H.S.A.) Degree; Master of Public Administration (M.P.A.) Degree; Master of Science (M.S.) Degree (Information Systems, Accounting, Human Resource Management and Management), and Executive Graduate Certificate Programs (Business Administration, Information Systems and Accounting).

Strayer University�� undergraduate programs include Bachelor of Science (B.S.) Degree (Accounting, Information Systems, Economics and Criminal Justice! ); Bachelor of Business Administration (B.B.A.) Degree;Associate in Arts (A.A.) Degree (Accounting, Acquisition and Contract Management, Business Administration, Information Systems, Economics, Marketing and Criminal Justice); Diploma Programs (Accounting, Acquisition and Contract Management, and Information System), and Undergraduate Certificate Programs (Accounting, Business Administration and Information Systems). Each undergraduate degree program includes courses in oral and written communication skills, as well as mathematics and a range of disciplines in the humanities and social sciences. In addition to its degree, diploma and certificate programs, it offers classes to non-degree and non-program students wishing to take courses for personal or professional enrichment. Strayer University students may enroll in courses at more than one campus and take courses online.

Students can take classes online using either a synchronous (real time) or asynchronous (on demand) format. Students may take all of their courses online or may take online courses as a supplement to traditional, classroom-based courses. Tuition for online courses is the same as for campus courses. During the year ended December 31, 2011, Strayer University had over 32,000 students who took classes solely online.

Advisors' Opinion:

• [By Jeff Brown]

  Everyone knows that college tuition has been soaring at two or three times the inflation rate, and that should allow for-profit colleges such as Strayer Education (STRA), owner of the 100-campus Strayer University and its online operation, to keep raising prices. Add intense demand from adults attracted to Strayer's curriculum, which focuses on business, accounting, information technology and similar practical subjects, and you'd expect Strayer to be printing money.

  But it's not. For 2012, revenue was $562 million, down from $627 million in 2011 and $637 million in 2010, while per-share earnings tumbled to $5.79, from $8.91 the year before. In fact, it's hard to find a financial figure that hasn't moved the wrong way. The stock has fallen from near $112 last July to $48.84. Strayer suspended its dividend in November.

  Strayer faces a lot of headwinds. College enrollment is falling, and Strayer's drifted down to 49,323 in 2012, from 56,002 in 2010. Lawmakers and regulators may clamp down on for-profit colleges that have poor graduation rates and leave students with loads of debt and jobless. Federal programs such as Pell Grants, a critical source of funding, could shrink over budget and debt concerns, and Strayer'sfuture students could become ineligible for loans if too many of their predecessors fall behind on payments. Finally, Strayer's online study program faces growing competition from traditional nonprofit institutions responding to students' demand for low cost and convenience.

Top 5 Dividend Stocks To Invest In Right Now: Diageo plc(DEO)

Diageo plc engages in producing, distilling, brewing, bottling, packaging, distributing, developing, and marketing spirits, beer, and wine products worldwide. It offers a range of brands, including Johnnie Walker scotch whiskies, Smirnoff vodka and Smirnoff ready to drink products, Baileys Original Irish Cream liqueur, Crown Royal Canadian whisky, Captain Morgan rum and rum based products, Jose Cuervo tequila, JeB scotch whisky, Buchanan?s scotch whisky, Windsor Premier scotch whisky, Ketel One vodka, Ciroc vodka, Tanqueray gin, Bushmills Irish whiskey, and Guinness stout. The company also provides other spirits brands that comprise Gordon?s gin and vodka, Old Parr scotch whisky, Bell?s scotch whisky, The Classic Malts scotch whiskies, Seagram?s 7 Crown whiskey and Seagram?s VO whisky, Cacique rum, White Horse scotch whisky, Don Julio tequila, and Bundaberg rum. In addition, it offers beer under various brands, such as Malta Guinness non-alcoholic malt, Harp lager, Tu sker lager, Smithwick?s ale, Senator lager, and Red Stripe lager; and wine under a range of brands, including Blossom Hill, Sterling Vineyards, Beaulieu Vineyard, Navarro Correas, Acacia Vineyard, Rosenblum Cellars, Piat d?Or, Chalone Vineyard, and Santa Rita. Further, Diageo plc owns the distribution rights for the Jose Cuervo tequila brands in North America and internationally. The company was founded in 1886 and is based in London, the United Kingdom.

Advisors' Opinion:

• [By Richard Young]

  Diageo has had great success in Africa and is replicating that success in South America. In Brazil, nine out of 10 shots of Scotch served are Diageo’s brands. Fifty percent of Scotch served in Venezuela is Diageo’s. The potential in South America is attractive. Between 10 million and 15 million people are entering the middle class in Latin America every year. My relative strength chart for Diageo has reached a five-year high.

• [By Richard Young]

  Shortly after Diageo‘s (NYSE:DEO) success in Africa, the company announced the acquisition of Meta Abo Brewery in Ethiopia. Meta Abo is the second-largest brewery in Ethiopia. Its purchase will give Diageo access to the country and a lead-in for its premium spirits brands.

  You can see on my price chart that a strong trend in Diageo’s price has developed after the financial crisis. Buy Diageo shares today.

Top 5 Clean Energy Stocks To Invest In Right Now: Transatlantic Petroleum Corp Co (TNP.TO)

TransAtlantic Petroleum Ltd., an international oil and natural gas company, engages in the acquisition, exploration, development, and production of oil and natural gas properties. The company holds interests in developed and undeveloped oil and natural gas properties in Turkey, Bulgaria, and Romania. As of March 1, 2012, it held approximately 5.4 million net onshore acres. The company had interests in 57 onshore exploration licenses and 9 onshore production leases covering 4.3 million net acres in Turkey; 2 onshore exploration permits in Bulgaria; and 1 onshore production license in Romania. TransAtlantic Petroleum Ltd. was founded in 1985 and is based in Istanbul, Turkey.

Top 5 Clean Energy Stocks To Invest In Right Now: NMDC Ltd (NMDC)

NMDC Limited (NMDC) is an India-based iron ore producer and exporter. The Company operates in two business segments: iron ore and other minerals and services. The Company is engaged in the exploration of a range of minerals including iron ore, copper, rock phosphate, lime stone, dolomite, gypsum, bentonite, magnesite, diamond, tin, tungsten, graphite, and beach sands. As of March 31, 2012, it produced about 30 million tons of iron ore from three fully mechanized mines, which include Bailadila Deposit-14/11C, Bailadila Deposit-5, 10/11A (Chhattisgarh State) and Donimalai Iron Ore Mines (Karnataka State). As of March 31, 2012, NMDC supplied 269.16 lakh tons of iron ore to domestic industries and had exported 3.85 lakh tons of iron ore. Its sponge Iron production was at 37,260 tons and its diamond production was 18043.44 carats during the year fiscal ended March 31,2012. On December 12, 2011, the Company's wholly owned subsidiary NMDC Power Ltd was incorporated.

Show Me the Money, Monro Muffler Brake

Although business headlines still tout earnings numbers, many investors have moved past net earnings as a measure of a company's economic output. That's because earnings are very often less trustworthy than cash flow, since earnings are more open to manipulation based on dubious judgment calls.

Earnings' unreliability is one of the reasons Foolish investors often flip straight past the income statement to check the cash flow statement. In general, by taking a close look at the cash moving in and out of the business, you can better understand whether the last batch of earnings brought money into the company, or merely disguised a cash gusher with a pretty headline.

Calling all cash flows
When you are trying to buy the market's best stocks, it's worth checking up on your companies' free cash flow once a quarter or so, to see whether it bears any relationship to the net income in the headlines. That's what we do with this series. Today, we're checking in on Monro Muffler Brake (Nasdaq: MNRO  ) , whose recent revenue and earnings are plotted below.

Source: S&P Capital IQ. Data is current as of last fully reported fiscal quarter. Dollar values in millions. FCF = free cash flow. FY = fiscal year. TTM = trailing 12 months.

Over the past 12 months, Monro Muffler Brake generated $50.3 million cash while it booked net income of $42.6 million. That means it turned 6.9% of its revenue into FCF. That sounds OK.

All cash is not equal
Unfortunately, the cash flow statement isn't immune from nonsense, either. That's why it pays to take a close look at the components of cash flow from operations, to make sure that the cash flows are of high quality. What does that mean? To me, it means they need to be real and replicable in the upcoming quarters, rather than being offset by continual cash outflows that don't appear on the income statement (such as major capital expenditures).

For instance, cash flow based on cash net income and adjustments for non-cash income-statement expenses (like depreciation) is generally favorable. An increase in cash flow based on stiffing your suppliers (by increasing accounts payable for the short term) or shortchanging Uncle Sam on taxes will come back to bite investors later. The same goes for decreasing accounts receivable; this is good to see, but it's ordinary in recessionary times, and you can only increase collections so much. Finally, adding stock-based compensation expense back to cash flows is questionable when a company hands out a lot of equity to employees and uses cash in later periods to buy back those shares.

So how does the cash flow at Monro Muffler Brake look? Take a peek at the chart below, which flags questionable cash flow sources with a red bar.

Source: S&P Capital IQ. Data is current as of last fully reported fiscal quarter. Dollar values in millions. TTM = trailing 12 months.

When I say "questionable cash flow sources," I mean items such as changes in taxes payable, tax benefits from stock options, and asset sales, among others. That's not to say that companies booking these as sources of cash flow are weak, or are engaging in any sort of wrongdoing, or that everything that comes up questionable in my graph is automatically bad news. But whenever a company is getting more than, say, 10% of its cash from operations from these dubious sources, investors ought to make sure to refer to the filings and dig in.

With questionable cash flows amounting to only 3.1% of operating cash flow, Monro Muffler Brake's cash flows look clean. Within the questionable cash flow figure plotted in the TTM period above, stock-based compensation and related tax benefits provided the biggest boost, at 3.1% of cash flow from operations. Overall, the biggest drag on FCF came from capital expenditures, which consumed 40.5% of cash from operations. Monro Muffler Brake investors may also want to keep an eye on accounts receivable, because the TTM change is 2.3 times greater than the average swing over the past 5 fiscal years.

A Foolish final thought
Most investors don't keep tabs on their companies' cash flow. I think that's a mistake. If you take the time to read past the headlines and crack a filing now and then, you're in a much better position to spot potential trouble early. Better yet, you'll improve your odds of finding the underappreciated home-run stocks that provide the market's best returns.

The rich are different than you and me: They might not notice the moneymaking stories right under our noses. In our new report, "Middle-Class Millionaire-Makers: 3 Stocks Wall Street's Too Rich to Notice," we give you three Peter Lynch-inspired buy-what-you-know stocks for the 99%. Click here for instant access to this free report.

We can help you keep tabs on your companies with My Watchlist, our free, personalized stock tracking service.

Add Monro Muffler Brake to My Watchlist.

Top 5 High Dividend Companies To Buy Right Now

Finding high-quality dividend stocks doesn't have to be difficult or time consuming. By looking for stocks with underlying financial strength and reliable payouts, even beginning investors can unlock exceptional returns for years on end. Today, let's look at two dividend stocks with low risk and high dividend growth -- an ideal combination for even the most novel investor.

1. PepsiCo (NYSE: PEP  )
Not only are Pepsi and its Frito-Lay business some of the most recognizable brands in the world, but the stock is also a dividend aristocrat. The S&P 500's Dividend Aristocrats list measures the performance of the top blue-chip companies that have consecutively raised their dividends for at least the part 25 years -- although in Pepsi's case, it just celebrated its 41st straight year of dividend increases. The company recently grew its dividend by 6% to an annual payout of $2.27 per share.

Top 5 High Dividend Companies To Buy Right Now: Orocobre Limited (ORL.TO)

Orocobre Limited engages in the exploration and development of mineral properties in Argentina. The company focuses on exploring for lithium, potash, and salar minerals. Its flagship project is the Salar de Olaroz project consisting of 63,000 hectares of tenements located in the north-western province of Jujuy. The company is based in Brisbane, Australia.

Top 5 High Dividend Companies To Buy Right Now: Vitec Group(VTC.L)

The Vitec Group plc, together with its subsidiaries, provides products and services for the broadcast, photographic, military, aerospace, and government markets worldwide. It operates in three divisions: Imaging and Staging, Videocom, and Services. The Imaging and Staging division engages in the design, manufacture, and distribution of equipment and accessories for professionals and amateurs in photography, video, and events fields. This division offers photo, video, and lighting support products; and stage and lighting systems, as well as distributes products for the photographic, video, cine, and lighting production markets. The Videocom division designs and distributes equipment principally for professionals engaged in producing and transporting video content for the media industries, such as broadcast, film, live events, and education, as well as for the military, aerospace, and government markets. It offers bags, camera accessories, lighting products, microwave system s, mobile power systems, prompters, and camera support equipment, as well as equipment rental services. The Services division provides equipment rental, workflow design, and technical support services for camera, video, audio, fiber optic, and wireless technology used by television production teams and film crews. It offers production equipment rental, used production equipment sales, maintenance services, event systems and services, and audio services and sales, as well as fiber optic system design, installation, and maintenance services. The company was formerly known as Vitec Group plc and changed its name to The Vitec Group plc in 2001. The Vitec Group plc was founded in 1910 and is headquartered in Kingston upon Thames, the United Kingdom.

Top Communications Equipment Companies To Watch In Right Now: BCSB Bancorp Inc.(BCSB)

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

Top 5 High Dividend Companies To Buy Right Now: Axcelis Technologies Inc.(ACLS)

Axcelis Technologies, Inc., together with its subsidiaries, designs, manufactures, and services ion implantation, dry strip, and other processing equipment used in the fabrication of semiconductor chips in the United States, Europe, and the Asia Pacific. It offers a line of high energy, high current, and medium current ion implanters for various applications, such as line of single wafer implanters, known as the Optima platform, comprising the Optima XE, the Optima HD, and the Optima MD. The company also offers dry strip tools, including the Integra RS, which comprises paired-chamber process modules. In addition, it provides aftermarket services and support, such as spare parts, equipment upgrades, maintenance services, and customer training. The company sells its equipment and services through direct sales force, distributors, and manufacturing representatives. Axcelis Technologies was founded in 1995 and is headquartered in Beverly, Massachusetts.

Top 5 High Dividend Companies To Buy Right Now: GulfMark Offshore Inc.(GLF)

GulfMark Offshore, Inc. provides offshore marine services primarily to companies involved in the offshore exploration and production of oil and natural gas. The company?s vessels provide various services supporting the construction, positioning, and ongoing operation of offshore oil and natural gas drilling rigs and platforms, and related infrastructure. Its vessels transport drilling materials, supplies, and personnel to offshore facilities, as well as move and position drilling structures, and provide anchor handling and towing services. The company?s fleet includes anchor handling, towing, and supply vessels; fast supply vessels; platform supply vessels; specialty vessels, including towing and oil response; and small anchor handling, towing, and supply vessels. GulfMark also offers management services to other vessel owners. As of April 27, 2011, its active fleet included 74 owned vessels and 15 managed vessels. It primarily serves integrated oil and natural gas compani es, large independent oil and natural gas exploration and production companies working in international markets, and foreign government-owned or controlled oil and natural gas companies, as well as companies that provide logistics, construction, and other services to such oil and natural gas companies and foreign government organizations. The company primarily operates in the North Sea, Southeast Asia, and the Americas. GulfMark Offshore, Inc. was founded in 1996 and is based in Houston, Texas.

Advisors' Opinion:

• [By Brian Stoffel]

  Rising Star Jason Moser made a bold call on this small-cap energy stock. What exactly does GulfMark do? According to Jason, "[The company] helps oil and gas companies not only find and extract new supplies, but also stay safe in the process."

  Quite simply, GulfMark isn't in the business of actually extracting oil from under the ocean floor. Instead, it focuses on "jobs such as transporting materials, supplies, and personnel, as well as positioning drilling structures," he says.

  The stock is down 28% since hitting its high back on July 25, so it's definitely worth a look.