U.S. Dollar: Time To Worry?

Four weeks ago, the USD index hit 3-year highs, metals licked their wounds from the biggest decline in decades and the US growth story stood out in the headline. The Fed was considered the only major central bank capable of scaling down its quantitative easing, while the ECB mulled cutting interest rates to zero. The greenback was boosted by a powerful combination of fundamental and technical moving in tandem.

But this all changed in June when the Fed reminded that any tapering of asset purchases would not necessarily tighten monetary policy as persistent growth in the Fed's balance sheet would help maintain liquidity driven in the markets.

The Fed's statement was not isolated. Signs of stabilization in the business surveys of the Eurozone and the UK PMIs as well as market scepticism with Japan PM Abe's “policy arrows” conspired to rebalance the flows in currency markets.

The timing of the aforementioned dynamics is never a coincidence. From a charts perspective, the greenback had tested an 8-year trendline resistance (see chart), EURUSD tested a 12-month trendline support and the yield on the US 10-year government note tested its 6-year trendline.

click to enlarge

(click to enlarge)

Levels to Watch

The list of explanations can go further and so do the plausible scenarios for a continuation of the USD's downtrend as well as its recovery. As it stands, we expect further strength in both the yen and sterling against the USD into the rest of the month until the USD index retests its 2-year trend support at 80.40-45. This implies an equivalent resistance near $1.3450s and $1.5660s in EURUSD and GBPUSD, respectively.

Policy/Data to Watch

Once those currency parameters are attained, the commentary from the Fed will once again be scrutinized as we near the revision of: 1) US Q2 GDP; 2) the release of the August jobs repo! rt; 3) the Fed's annual symposium in Jackson Hole and; 4) more clarity on the race for Fed successor between Janet Yellen and Lawrence Summers, all of which will take place in the final week of August/early September. The fundamental scenarios for a break in USD support could well include a lower than expected tapering of the $85 bn in asset purchases, or no tapering at all in September but only a mild announcement for December. And do not discount the role of the obligatory article from Wall Street Journal's Fed watcher Jon Hilsenrath, whose effectiveness in steering bond and FX markets has returned after a temporary lull late last year.

On the fiscal side, FX traders will closely watch President Obama's corporate tax reforms and the possibility of slashing taxes on US multinationals' foreign earnings. When Bush introduced similar reform in 2004 as part of the Homeland Investment Act, the dollar had a powerful year resulting from US multinationals repatriating nearly half a billion dollar to qualify for the tax holiday in 2005.

We have not covered non-US factors, which could stem the tide of USD-negative FX flows such as: negative surprises from China's macro data/money markets; rising pre-election tensions in the camp of German Chancellor Merkel and unforeseen finance shortfalls from the sovereign obligations of Southern Eurozone nations. These are the factors to watch and the levels to scrutinize.

Source: U.S. Dollar: Time To Worry?

Germany to Help Spain With Credit for Growth, Jobs

BERLIN (AP) -- Germany is setting up a loan program for struggling small and medium-sized firms in Spain to boost growth and jobs in the crisis-hit southern European economy, according to a document obtained Monday.

Germany's state-owned KfW bank will provide about 1 billion euros ($1.3 billion) at low interest rates to its Spanish counterpart, which will be probably able to lend out several times that amount in cheap loans to local firms.

The move is aimed at easing a credit crunch that is afflicting much of southern Europe, where small and medium-sized firms in particular are struggling to access affordable loans that would allow them to expand their business.

Top ECB officials and several EU leaders have described the lack of access to credit in heavily indebted countries as one of the most pressing issues to deal with as the continent tries to emerge from recession.

Germany, on the other hand, enjoys a top-notch AAA rating that investors see as a safe haven. It can therefore borrow money at rock-bottom interest rates.

The initiative could also be extended to other countries, such as Portugal, that have been hit hard by the 17-nation eurozone's debt crisis, German Deputy Finance Minister Steffen Kampeter said in the document obtained by The Associated Press.

Spain, the eurozone's fourth-largest economy, is mired in recession, with an unemployment rate of about 27 percent and about one in two young people lacking a job.

The German initiative's design as "bilateral aid with rapid impact" reflects growing impatience in Berlin about the slow progress by the EU in freeing up existing funds to assist hard-hit countries.

The European Central Bank's benchmark interest rate is currently at a record low 0.5 percent, but banks are not passing on that low rate to companies because their own finances are strained. Firms in economies like Spain, Portugal, Greece, and to a lesser extent Italy still struggle to get affordable financing. Even when banks are willing to lend, the interest rates demanded are significantly higher than in, say, economically robust Germany.

The loan facility for Spain foresees Germany's KfW bank granting its Spanish state-backed counterpart, ICO, a 10-year 800-million-euro loan. The total liability including interest rates is estimated at 1 billion euros, according to the finance ministry document. In addition, KfW is in talks to support two existing ICO company lending programs with another 100 million euros each.

"It must be achieved to rapidly solve companies' acute financing problems, because then many small and medium-sized firms, who have a solid business model and good growth outlook, will be able to secure their existence and start expanding employment again," the document read.

The ministry stressed overcoming those firms' credit shortages is important "because those companies are crucial for safeguarding the existing jobs and the creation of new trainee positions and jobs."

Finance Minister Wolfgang Schaeuble will brief Parliament's budget committee on the initiative Wednesday. It was expected to have wide cross-party support, and lawmakers won't hold a vote since the foreseen amount remains within the framework of already agreed credit guarantee lines.

"It is good news that the government finally actively supports the program countries to overcome the credit crunch," said Priska Hinz, the opposition Greens' ranking member on the committee. "One can only hope that this change of heart doesn't come much too late," she added.

Germany is currently also assisting Portugal, which is in the middle of a recession coupled with high unemployment, to set up a state-owned bank modeled on KfW to prop up lending to the private sector as a first step before possibly also granting it a bilateral loan facility.

"The measures are part of an overall strategy that shall foster growth and employment especially of young people in selected (...) eurozone countries," Schaeuble's deputy Kampeter said in his letter to lawmakers dated Friday.

This Company Is In The Sweet Spot Of 2 Huge Internet Trends

A big part of my job as managing editor of StreetAuthority involves talking with our premium newsletter experts to get a sense of what they like in the market, where they think it's headed and how they plan to help their followers profit.

That means I get paid to hear from some of the top investing minds in the country on a regular basis. What could be better?

I want to share some of that wisdom. I'm featuring insights and top picks from each of our experts over the next couple of weeks as a way of saying thanks for being a StreetAuthority.com reader.

Today's pick comes courtesy of Amber Hestla.

	Amber Hestla

As a former U.S. military intelligence analyst, Amber Hestla learned how to analyze data to predict outcomes. These days she applies those skills to financial markets for ProfitableTrading.com, a StreetAuthority sister site. Amber's specialty is generating income using options strategies that minimize risk. In her advisory, Income Trader, Amber uses a step-by-step approach to guide readers through the options market in search of the best income plays each week. 

So far, so good: Every trade that Amber has closed in Income Trader since the first issue in early February has been a winner -- that's one winning income trade a week since Feb. 6.

Here's more from Amber: 

A Company Whose Coffers are Benefiting from Two Internet Megatrends
There are two undisputed Internet megatrends -- growing worldwide usage and the need for tighter security.

F5 Networks (Nasdaq: FFIV) benefits from both.

The company's flagship product, F5 BIG-IP 5000, is a high-performance "switch" -- a device that manages data for large networks. Customers include cell phone network operators such as AT&T (NYSE: T) and Verizon Communications (NYSE: VZ). Major network software providers, including Microsoft (Nasdaq: MSFT), Oracle (NYSE: ORCL) and SAP (NYSE: SAP) also utilize F5's wares.

 

This equipment acts as a gateway between users and the data servers, while maintaining security.

As a way to visualize these services, think about connecting to Netflix (Nasdaq: NFLX). You request a movie, and the switch decides which of the Netflix's servers should deliver that movie to you. The switch is responsible for finding a server not being fully utilized to send your request so that it can be processed quickly.

It also defends against so-called distributed denial-of-service (DDoS) attacks, which try to overwhelm a company's servers and prevent legitimate users from accessing service. A recent survey found that more than a third of large companies experienced a disruptive attack in 2012. More than a quarter of the attacks led to costs between $50,000 and $100,000 an hour, with the average attack lasting more than 30 hours.

Given the expense of a single DDoS attack, the $32,000 price tag for a F5BIG-IP 5000 is a bargain.

Last week, F5 announced earnings for the most recent quarter that beat analysts' expectations. Revenue was up 5% from a year earlier, and, going forward, F5 said it expects earnings per share to increase as much as 7% in the current quarter compared with a year ago.

FFIV is also one of the best managed companies in its industry, as you can see from this chart:

F5 is performing significantly better than average in each of these measures and every other metric I checked. But instead of buying shares outright, I recommend readers sell a put and get paid to buy shares at a discount.

Specifically, I recommend selling FFIV Oct 70 Puts for around 65 cents. Selling these puts will generate immediate income of about $65 per contract. Assuming FFIV trades for $70 or more on Oct. 18, we keep the premium and make a profit of $65 on $1,400 (the "down payment" to initiate the trade). That's a 4.6% return in 77 days. If we can repeat a similar trade every 77 days, we'd earn a 22.8% return on our capital in 12 months.

If FFIV trades for less than $70 on Oct. 18, you'll keep the $65 per contract, but you'll have to buy FFIV at $70 per share. In this case, you'll own F5 at a cost basis of $69.35 (the $70 "strike" minus the 65-cent premium, which you keep), a 21.1% discount to recent prices.

At $69.15, we'd own shares at about 13.6 times estimated 2014 earnings, and we'd be able to sell covered calls on the position to generate additional income.

(Note: Options aren't for everyone. Please check with your broker about any special capital and paperwork requirements that you may need to fulfill.)

P.S. -- Amber has an eye for seeing what others miss -- and she's uncovered a glitch in the options world that could be worth thousands of dollars per year to traders. To see here report, and what she's uncovered, click here.

Best Growth Companies To Own For 2014

Valmont Industries (NYSE: VMI  ) reported impressive first-quarter earnings recently, with operating income rising 43% on strong sales and increasing margins. The growth in sales was largely due to the company's Utility Support Structures and Irrigation segments, which each had 25% sales growth.

Utility Support Structures was helped by an expansion of the electric grid in the United States. Valmont is one of the biggest manufacturers of utility poles in the U.S., and because of increasing power usage, utility companies are investing heavily in building infrastructure to handle it. Southern (NYSE: SO  ) increased its capital expenditures by 20% from 2008 to 2012, and Duke Energy (NYSE: DUK  ) beat that in just the last year.

Irrigation was helped along by the continuing drought in the United States. Last summer was one of the worst droughts on record, and according to the United States Drought Monitor, almost the entire western half of the U.S. is still experiencing some kind of drought, with much of the Corn Belt and Great Plains regions experiencing "extreme" or "exceptional" drought conditions.

Best Growth Companies To Own For 2014: TrueBlue Inc.(TBI)

TrueBlue, Inc. provides temporary blue-collar staffing services in the United States. It supplies on demand general labor to various industries under the Labor Ready brand; skilled labor to manufacturing and logistics industries under the Spartan Staffing brand; and trades people for commercial, industrial, and residential construction, and building and plant maintenance industries under the CLP Resources brand. The company also provides mechanics and technicians to the aviation maintenance, repair and overhaul, aerospace manufacturing, and assembly industries, as well as to other transportation industries under the Plane Techs brand; and temporary drivers to the transportation and distribution industries under the Centerline brand. It primarily serves small and medium-size businesses. The company was formerly known as Labor Ready, Inc. and changed its name to TrueBlue, Inc. in December 2007. TrueBlue, Inc. was founded in 1985 and is headquartered in Tacoma, Washington.

Advisors' Opinion:

• [By McWillams]

  TrueBlue, Inc. is a provider of temporary blue-collar staffing. Its EPS forecast for the current year is 0.69 and next year is 1.1. According to consensus estimates, its topline is expected to grow 8.96% current year and 10.03% next year. It is trading at a forward P/E of 15.76. Out of 10 analysts covering the company, six are positive and have buy recommendations and four have hold ratings.

Best Growth Companies To Own For 2014: Thoratec Corporation(THOR)

Thoratec Corporation engages in the development, manufacture, and marketing of proprietary medical devices used for circulatory support. The company?s primary product lines include ventricular assist devices, such as HeartMate II, an implantable left ventricular assist device consisting of a rotary blood pump to provide intermediate and long-term mechanical circulatory support (MCS); and HeartMate XVE, an implantable and pulsatile left ventricular assist device for intermediate and longer-term MCS. Its ventricular assist devices also comprise Paracorporeal Ventricular Assist Device, an external pulsatile ventricular assist device, which provides left, right, and biventricular MCS approved for bridge-to-transplantation (BTT), including home discharge, and post-cardiotomy myocardial recovery; and Implantable Ventricular Assist Device, an implantable and pulsatile ventricular assist device designed to provide left, right, and biventricular MCS approved for BTT comprising hom e discharge, and post-cardiotomy myocardial recovery. The company also provides CentriMag, an extracorporeal full-flow acute surgical support platform that offers support up to 30 days for cardiac and respiratory failure. In addition, it offers PediMag and PediVAS extracorporeal full-flow acute surgical support platforms designed to provide acute surgical support to pediatric patients. The company sells its products through direct sales force in the United States, as well as through a network of distributors internationally. Thoratec Corporation was founded in 1976 and is headquartered in Pleasanton, California.

Advisors' Opinion:

• [By McWillams]

  Wall Street is expecting Thoratec’s (THOR: 30.70 0.00%) growth rate to accelerate to 15% next year with earnings growth of over 20%. That type of growth has Wall Street analysts bullish on the medical device stock. The stock has a consensus price target of $38 and some analysts think THOR could go to $50.

5 Best Blue Chip Stocks To Watch For 2014: Eastern Insurance Holdings Inc.(EIHI)

Eastern Insurance Holdings, Inc., through its subsidiaries, provides workers compensation insurance and reinsurance products in the United States. The company?s Workers Compensation Insurance segment provides traditional workers compensation insurance coverage products, including guaranteed cost policies, policyholder dividend policies, retrospectively-rated policies, deductible policies, and alternative market products to employers. This segment distributes its workers? compensation products and services through its independent insurance agents primarily in Pennsylvania, Delaware, North Carolina, Maryland, Indiana, and Virginia. Its Segregated Portfolio Cell Reinsurance segment offers alternative market workers compensation solutions comprising program design, fronting, claims administration, risk management, segregated portfolio cell rental, asset management, and segregated portfolio management services to individual companies, groups, and associations. Eastern Insurance Holdings, Inc. is headquartered in Lancaster, Pennsylvania.

Best Growth Companies To Own For 2014: Checkpoint Systms Inc.(CKP)

Checkpoint Systems, Inc. manufactures and markets identification, tracking, security, and merchandising solutions for the retail and apparel industry worldwide. The company operates in three segments: Shrink Management Solutions, Apparel Labeling Solutions, and Retail Merchandising Solutions. The Shrink Management Solutions segment provides shrink management and merchandise visibility solutions. It offers electronic article surveillance systems, such as EVOLVE, a suite of RF and RFID-enabled products that act as a deterrent to prevent merchandise theft in retail stores; and electronic article surveillance consumables, including EAS-RF and EAS-EM labels that work in combination with EAS systems to reduce merchandise theft in retail stores. This segment also provides keepers, spider wraps, bottle security, and hard tags, as well as Showsafe, a line alarm system for protecting display merchandise. In addition, it offers physical and electronic store monitoring solutions, incl uding fire alarms, intrusion alarms, and digital video recording systems for retail environments; and RFID tags and labels. The Apparel Labeling Solutions segment provides apparel labeling solutions to apparel retailers, brand owners, and manufacturers. It has Web-enabled apparel labeling solutions platform and network of 28 service bureaus located in 22 countries that supplies customers with customized apparel tags and labels. The Retail Merchandising Solutions segment offers hand-held label applicators and tags, promotional displays, and queuing systems. The company serves retailers in the supermarket, drug store, hypermarket, and mass merchandiser markets through direct distribution and reseller channels. Checkpoint Systems was founded in 1969 and is based in Thorofare, New Jersey.

Advisors' Opinion:

• [By Michael]

  OK, so Checkpoint (CKP: 13.80 0.00%) probably isn’t going to see its stock price double in 2011. However, the stock gained 35% in 2010 with earnings expected to climb 13%. Next year, Wall Street sees earnings growth accelerating to 25%. Despite the impressive growth rate, the stock trades at only 16x next year’s earnings estimates and analysts have a $25 price target for CKP.

Best Growth Companies To Own For 2014: CNO Financial Group Inc. (CNO)

CNO Financial Group, Inc., through its subsidiaries, engages in the development, marketing, and administration of health insurance, annuity, individual life insurance, and other insurance products for senior and middle-income markets in the United States. The company markets and distributes Medicare supplement insurance, interest-sensitive and traditional life insurance, fixed annuities, and long-term care insurance products; Medicare advantage plans through a distribution arrangement with Humana Inc.; and Medicare Part D prescription drug plans through a distribution and reinsurance arrangement with Coventry Health Care. It also markets and distributes supplemental health, including specified disease, accident, and hospital indemnity insurance products; and life insurance to middle-income consumers at home and the worksite through independent marketing organizations and insurance agencies. In addition, the company markets primarily graded benefit and simplified issue life insurance products directly to customers through television advertising, direct mail, Internet, and telemarketing. It sells its products through career agents, independent producers, direct marketing, and sales managers. CNO Financial Group, Inc. has strategic alliances with Coventry and Humana. The company was formerly known as Conseco, Inc. and changed its name to CNO Financial Group, Inc. in May 2010. CNO Financial Group, Inc. was founded in 1979 and is headquartered in Carmel, Indiana.

How BAE Systems Measures up as a GARP Investment

LONDON -- A popular way to dig out reasonably priced stocks with robust growth potential is through the "Growth at a Reasonable Price", or GARP, strategy. This theory uses the price-to-earnings to growth (PEG) ratio to show how a share's price weighs up in relation to its near-term growth prospects -- a reading below 1 is generally considered decent value for money.

Today I am looking at BAE Systems  (LSE: BA  ) (NASDAQOTH: BAESY  ) to see how it measures up.

What are BAE Systems' earnings expected to do?

 

2013

2014

EPS Growth	9.0%	(1.0)%
P/E Ratio	9.7	9.8
PEG Ratio	1	n/a

Source: Digital Look

BAE Systems is widely expected to punch solid earnings growth in the coming year, although fears of falling defense expenditure in the West is predicted to result in a slight drop in 2014.

For this year, BAE Systems looks like great value with a PEG reading bang on the money at one, while a P/E ratio of below 10 -- territory which is generally considered decent value -- also underlines its position as a cheap pick. Next year's earnings dip knocks out this PEG ratio, however, although its P/E multiple is projected to remain in bargain terrain.

Does BAE Systems provide decent value against its rivals?

 

FTSE 100

Aerospace & Defense

Prospective P/E Ratio	16.7	12.9
Prospective PEG Ratio	4.7	3.5

Source: Digital Look

BAE Systems stacks up favorably against both the FTSE 100 as well as its peers in the aerospace and defense sector, considering both forward PEG and P/E ratios.

Many of BAE Systems' defense rivals are smaller, more flexible and thus better equipped to protect earnings despite falling expenditure on both sides of the Atlantic. Still, these problems are still a heavy plague across the whole sector, making BAE Systems look cheap at current prices.

Although fears over reduced spending from traditional customers in the near term continues to dent investor appeal, the company's huge order pipeline -- its backlog rose 8% last year to £42.4 billion -- illustrates BAE Systems' solid growth potential.

An important defense player with expanding horizons
BAE Systems is extending its geographical range in order to mitigate the effect of falling orders from the West, and saw orders outside of the U.S. and U.K. advance to £11.2 billion in 2012, a gargantuan 133% leap from the previous year. The company is already a major player in Saudi Arabia, and is making huge inroads into other lucrative developing markets including India.

The effect of budgetary constraints in Washington, combined with a reduction in combat operations in Afghanistan in coming years, is likely to crimp hardware demand from the U.S. However, BAE Systems -- which derives 40% of total turnover from the country -- remains a critical supplier to the country's armed forces.

Just this week the company, through its role as subcontractor to Support Systems Associates, was awarded a $1.5 billion contract for a five-year duration to provide aircraft engineering solutions and logistics to the U.S. armed forces.

Although fears of reduced Western spend continues to hamper confidence in BAE Systems, I believe that the company is a great GARP stock. Its position at the forefront of battleground technologies makes it an important supplier to the world's largest military superpower. Coupled with this, I expect rising exposure to lucrative new geographies to underpin strong earnings expansion moving forwards.

The expert's guide for intelligent investors
If you already hold shares in BAE Systems, check out this newly updated special report which highlights a host of other FTSE winners identified by ace fund manager Neil Woodford.

Woodford -- head of U.K. Equities at Invesco Perpetual -- has more than 30 years' experience in the industry, and boasts an exceptional track record when it comes to selecting stock market stars.

The report, compiled by The Motley Fool's crack team of analysts, is totally free and comes with no further obligation. Click here now to download your copy.

link

Top 10 Value Stocks To Own Right Now

Earlier this week, CoreLogic came out with some good news�on the housing front: Rising home prices during the first quarter of this year have raised values, lifting about 850,000 homeowners out of negative-equity territory. While 9.7 million home loans are still underwater, the number of these troubled mortgages has fallen enough to encompass less than 20%�of total loans. At the end of 2012, 10.5 million homes had negative equity.

Hot on the heels of this uplifting announcement comes the news that banks repossessed more homes in May�than in the month previous -- 11% more, overall. In some areas of the country, the percentages were eye-popping: North Carolina saw repossessions rise by 60%, and Oregon's rate jumped 57% from April to May.

Banks want to get in on better pricing
While it might seem counterintuitive that fewer homeowners being caught in the negative equity trap would result in a higher number of foreclosures, that is exactly what is happening.

Top 10 Value Stocks To Own Right Now: Dollar Tree Inc.(DLTR)

Dollar Tree, Inc. operates discount variety stores in the United States and Canada. Its stores offer merchandise primarily at the fixed price of $1.00. The company operates its stores under the names of Dollar Tree, Deal$, Dollar Tree Deal$, Dollar Giant, and Dollar Bills. Its stores offer consumable merchandise, including candy and food, and health and beauty care, as well as household consumables, such as paper, plastics, household chemicals, in select stores, and frozen and refrigerated food; variety merchandise, which includes toys, durable housewares, gifts, party goods, greeting cards, softlines, and other items; and seasonal goods, such as Easter, Halloween, and Christmas merchandise. As of April 30, 2011, it operated 4,089 stores in 48 states and the District of Columbia, as well as 88 stores in Canada. The company was founded in 1986 and is based in Chesapeake, Virginia.

Advisors' Opinion:

• [By Sam Collins]

  Dollar Tree (NASDAQ:DLTR) is a leading operator of discount variety stores. The stock has hugged its 50-day moving average since mid-February. But a recent minor revision of earnings for this year by several analysts and the recent market sell-off have resulted in a fall from its high of the year at over $70 to under $66. However, Goldman Sachs (NYSE:GS) increased its price target to $73 from $69.

  Technically DLTR is oversold, according to MACD. A break below its 50-day moving average could result in a pullback to $64, but positions could be taken at the current market price. The trading target for DLTR is $72.

Top 10 Value Stocks To Own Right Now: Tupperware Corporation(TUP)

Tupperware Brands Corporation operates as a direct seller of various products across a range of brands and categories through an independent sales force. The company engages in the manufacture and sale of kitchen and home products, and beauty and personal care products. It offers preparation, storage, and serving solutions for the kitchen and home, as well as kitchen cookware and tools, children?s educational toys, microwave products, and gifts under the Tupperware brand name primarily in Europe, Africa, the Middle East, the Asia Pacific, and North America. The company provides beauty and personal care products, which include skin care products, cosmetics, bath and body care, toiletries, fragrances, nutritional products, apparel, and related products principally in Mexico, South Africa, the Philippines, Australia, and Uruguay. It offers beauty and personal care products under the Armand Dupree, Avroy Shlain, BeautiControl, Fuller, NaturCare, Nutrimetics, Nuvo, and Swissgar de brand names. The company sells its Tupperware products directly to distributors, directors, managers, and dealers; and beauty products primarily through consultants and directors. As of December 26, 2009, the Tupperware distribution system had approximately 1,800 distributors, 61,300 managers, and 1.3 million dealers; and the sales force representing the Beauty businesses approximately 1.1 million. The company was formerly known as Tupperware Corporation and changed its name to Tupperware Brands Corporation in December 2005. The company was founded in 1996 and is headquartered in Orlando, Florida.

Advisors' Opinion:

• [By Sam Collins]

  Household name Tupperware Brands Corp. (NYSE:TUP) is a global direct seller of products with multiple brands through an independent sales force of 2.4 million people. Its product line focuses on kitchen storage and serving solutions, as well as personal-care products. Over 60% of sales in 2011 are expected to come from Europe and Asia, and the stock has appeal as an emerging markets story.

  S&P estimates that 2011 earnings will increase to $4.54 versus $3.53 in 2010, and it increased its rating to a “five-star strong buy” with a recently revised 12-month target of $81, up from $73. The 2005 purchase of Sara Lee’s (NYSE:SLE) direct-sales business, which has a high growth rate, should be a long-term benefit. TUP’s annual dividend yield is 1.92%.

  Technically TUP had a pullback following a new high at over $70 and is currently oversold. Buy TUP at the current market price with a trading target of $70, but longer term a much higher target will likely be attained.

Hot Financial Companies To Invest In Right Now: Schlumberger N.V.(SLB)

Schlumberger Limited, together with its subsidiaries, supplies technology, integrated project management, and information solutions to the oil and gas exploration and production industries worldwide. The company?s Oilfield Services segment provides exploration and production services; wireline technology that offers open-hole and cased-hole services; supplies engineering support, directional-drilling, measurement-while-drilling, and logging-while-drilling services; and testing services. This segment also offers well services; supplies well completion services and equipment; artificial lift; data and consulting services; geo services; and information solutions, such as consulting, software, information management system, and IT infrastructure services that support oil and gas industry. Its WesternGeco segment provides reservoir imaging, monitoring, and development services; and operates data processing centers and multiclient seismic library. This segment also offers variou s services include 3D and time-lapse (4D) seismic surveys to multi-component surveys for delineating prospects and reservoir management. The company?s M-I SWACO segment supplies drilling fluid systems to improve drilling performance; fluid systems and specialty tools to optimize wellbore productivity; production technology solutions to maximize production rates; and environmental solutions that manages waste volumes generated in drilling and production operations. Its Smith Oilfield segment designs, manufactures, and markets drill bits and borehole enlargement tools; and supplies drilling tools and services, tubular, completion services, and other related downhole solutions. The company?s Distribution segment markets pipes, valves, and fittings, as well as mill, safety, and other maintenance products. This segment also provides warehouse management, vendor integration, and inventory management services. Schlumberger Limited was founded in 1927 and is based in Houston, Texas.

Advisors' Opinion:

• [By Kathy Kristof]

  Headquarters: Houston
  
  52-Week High: $79.38
  
  52-Week Low: $56.86 
  
  Annual Sales: $39.5 bill.
  
  Projected Earnings Growth: 18% annually over the next five years 
  
  
  Energy-services giant Schlumberger is the prototypical multinational. The company derives roughly 85% of its revenues from overseas, including developing markets in Africa, Brazil and Asia. 
  
  With particular expertise in deep-water drilling, Schlumberger is well-positioned to compete in a world where oil is harder to find, says Argus Research analyst Philip Weiss. Admittedly, oil exploration is a cyclical business, driven largely by crude prices. And weak prices for natural gas have hit the company’s stock, Weiss says. But the price of natural gas has little to do with Schlumberger’s profits, so Weiss just sees this as an opportunity to get the shares at a more reasonable price.

• [By Brian Stoffel]

  This company has been a pick of both Jordan DiPietro and Bryan White. And both analysts have pointed to the company's opportunity for oil exploration abroad -- which is where much of the demand will soon be coming from as well.

  Bryan points out that three-fourths of the company's revenue comes from abroad, with "Brazil, the Middle East, and Africa [as] key regions where activity is expected to be robust and growing."

  Jordan adds, "[Schlumberger] has an important presence in high-growth regions of the world such as Iraq, Mexico, and Russia, and has the competitive advantage to be able to offer full services, from managing entire oil fields to drilling wells."

• [By Robert Holmes]

   Schlumberger has the most potential upside of any stock in this group of 50 that also makes the firm's Best Ideas list. Analyst Ole Slorer says Schlumberger has "what we consider the most advanced technology portfolio in the industry."

  "Its fundamentals are impressive, with what we think are some of the best field personnel, a pristine service and performance reputation, and leading market share in most of its product lines," Slorer writes.

  Though Slorer's price target is 42% above current levels, his most bullish scenario for Schlumberger over the next year would see shares climb a whopping 116%. On the downside, his most bearish scenario for the company would see shares slide 38% over the next 12 months.

• [By Rebecca Lipman]

   Together with its subsidiaries, supplies technology, integrated project management, and information solutions to the oil and gas exploration and production industries worldwide. Market cap of $91.49B. EPS growth (5-year CAGR) at 24%. According to Morgan Stanley: "Thanks to an estimated $1 billion investment per year in R&D, Schlumberger has what we consider the most advanced technology portfolio in the industry."

Top 10 Value Stocks To Own Right Now: Caterpillar Inc.(CAT)

Caterpillar Inc. manufactures and sells construction and mining equipment, diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives worldwide. It operates through three lines of businesses: Machinery, Engines, and Financial Products. The Machinery business offers construction, mining, and forestry machinery, including track and wheel tractors, track and wheel loaders, pipelayers, motor graders, wheel tractor-scrapers, track and wheel excavators, backhoe loaders, log skidders, log loaders, off-highway trucks, articulated trucks, paving products, skid steer loaders, underground mining equipment, tunnel boring equipment, and related parts. It also manufactures diesel-electric locomotives; and manufactures and services rail-related products and logistics services for other companies. The Engines business provides diesel, heavy fuel, and natural gas reciprocating engines for Caterpillar machinery, electric power generation systems, marine, petrol eum, construction, industrial, agricultural, and other applications. It offers industrial turbines and turbine-related services for oil and gas, and power generation applications. This business also remanufactures Caterpillar engines, machines, and engine components; and offers remanufacturing services for other companies. The Financial Products business provides retail and wholesale financing alternatives for Caterpillar machinery and engines, solar gas turbines, and other equipment and marine vessels, as well as offers loans and various forms of insurance to customers and dealers. It also offers financing for vehicles, power generation facilities, and marine vessels. The company markets its products directly, as well as through its distribution centers, dealers, and distributors. It was formerly known as Caterpillar Tractor Co. and changed its name to Caterpillar Inc. in 1986. Caterpillar Inc. was founded in 1925 and is headquartered in Peoria, Illinois.

Advisors' Opinion:

• [By Jim Cramer,TheStreet]

  Caterpillar (CAT) could be a monster in 2011, especially with the integration of Bucyrus International (BUCY), which I think will turn out to be a fantastic acquisition.

  Current earnings-per-share estimates of about $6 are, I think, way too low. I see this stock going to $120 in the next year. Too gutsy? Ask yourself what happens if the United States comes back as a growth nation? Right now almost all of the growth is overseas.

  Still a fantastic mineral play and a terrific call on world growth.

• [By Roberto Pedone]

  Caterpillar (CAT) is staging a textbook breakout in May. Shares of heavy equipment maker haven't exactly been kind to investors year-to-date; CAT has barely broken even during a time when the broad market has been in a historic rally. But a textbook breakout should change that.

  CAT started forming an inverse head and shoulders pattern back in early April. The inverse head and shoulders is formed by two swing lows that bottom out around the same level (the shoulders), separated by a lower low called the head; the buy signal comes on the breakout above the pattern's "neckline" level, which was just below $86 for CAT. That puts this stock's upside target right around $92.

  Even though CAT has nearly hit its upside target already (the post-breakout buying has been very quick), the longer-term implication for investors is a break of the downtrend that had been haranguing shares this year. Now, with that downtrend broken, CAT should have more room to move higher. I'd just expect some consolidation first.

Will World Markets Hurt the Dow Tomorrow?

U.S. investors are taking a much-deserved break, with trading in U.S. financial markets closed for the Memorial Day holiday. But elsewhere around the world, markets made some big moves that could have an impact on the Dow Jones Industrials (DJINDICES: ^DJI  ) and other U.S. stocks when markets reopen tomorrow.

In Japan, the Nikkei (NIKKEIINDICES: ^NI225  ) fell another 3% on Monday, as the U.S. dollar dropped below the 101 yen mark in a minor reversal to a move that has seen the dollar soar by more than 30% against the yen since last September. Japan finds having to walk a fine line between seeking to stimulate its long-flagging economy while avoiding a massive disruption in its bond markets, and lately, a rapid rise in government bond rates has raised concerns about the island nation's ability to service debt that amounts to more than twice the nation's gross domestic product.

Meanwhile, in Europe, stocks traded generally higher, and although the U.K. market was also on holiday, shares in France and Germany both rose. Investors were pleased by the fact that bond yields in Spain and Italy, two of the more vulnerable major economies in the eurozone, settled back down Monday after having risen last week in light of the overall uncertainty in the global economy.

What it means for the Dow
Japan's drop recently has come on the heels of slowing economic growth in China, which remains a lucrative potential market that could help the Japanese economy bolster its own growth. The declines that U.S. investors have seen in Caterpillar (NYSE: CAT  ) and Alcoa (NYSE: AA  ) lately are just one symptom of the downturn in China, but they demonstrate the challenges that Japanese manufacturing stocks face in taking maximum advantage of the emerging-market opportunity there.

So far, consumer-facing stocks have seen only limited impact from the Chinese growth slowdown. McDonald's (NYSE: MCD  ) and other fast-food companies have suffered from the avian-flu outbreak and its consequent impact on restaurant volume, especially at chains that sell a substantial amount of chicken-based products. If the Chinese economy falters enough to threaten the rise of the nation's luxury and middle-class consumers, however, then a much wider range of U.S. and other foreign companies could start to see more direct effects. That in turn could pose a much larger direct threat to the Dow and U.S. stocks in general.

McDonald's turned in a dismal year in 2012, underperforming the broader market by 25%. Looking ahead, can the Golden Arches reclaim its throne atop the restaurant industry, or will this unsettling trend continue? Our top analyst weighs in on McDonald's future in a recent premium report on the company. Click here now to find out whether a buying opportunity has emerged for this global juggernaut.

1 Thing to Watch When Pandora Reports

Pandora (NYSE: P  ) reports on Thursday, and financial journalists will talk up the growth. Big deal. We know Pandora reports monthly audience metrics. Folks will also talk up the likely red ink. We know that, too. 

However, the one area where Pandora can really blow investors away is by proving that more than 1% of its users are actually paying to use the site.

In this video, longtime Fool contributor explains why having just 12% of revenue coming from subscriptions is a problem for a music website. No other major player sees it that way.

Spotify has millions of paying subscribers. Even Sirius XM Radio (NASDAQ: SIRI  ) receiver-based subscribers have to pay an additional $3.50 a month for streaming content online. Now Google (NASDAQ: GOOG  ) has its All Access music subscription service that was announced last week.

For Pandora to have 70 million active monthly listeners is great, but having 69 million of them tuning in for free is not.

Pandora has won millions of devotees among music fans but few supporters on Wall Street. The online jukebox seems to be redefining the way we consume music, a transformation that's only likely to grow. But high royalty rates and competition from all corners threatens to silence the company. Can Pandora translate success with its listeners into a prosperous business model that will deliver for investors? Learn about the key opportunities and potential pitfalls facing the upstart radio streamer in The Motley Fool's new premium research report. All you have to do is click here now to subscribe to this invaluable investor's resource.

 

Was This Intel's Biggest Mistake?

There should be no doubts by now that Intel (NASDAQ: INTC  ) missed some key strategic opportunities in mobile computing. The chip giant has yet to make meaningful progress in one of the most powerful secular shifts to seize the industry in decades. The company still relies heavily on the PC market, which we all know isn't doing so hot right about now.

According to a profile in The Atlantic of just-retired CEO Paul Otellini, it didn't have to be this way. Intel silicon could have powered the original iPhone.

What could have been
Shortly after Apple (NASDAQ: AAPL  ) transitioned its entire Mac lineup to Intel processors, ditching the PowerPC architecture, Intel had the opportunity to score the then-mysterious iPhone. At the time, no one could have predicted how disruptive Apple's new smartphone would be, and Otellini certainly didn't expect the unreleased device to go on and change the world.

Otellini recalled, "We ended up not winning it or passing on it, depending on how you want to view it. And the world would have been a lot different if we'd done it." The issue was that Apple had a certain price that it was willing to pay and "not a nickel more," but Intel expected its costs to be above that price. It was the type of hurdle that couldn't be overcome by volume, Otellini believed at the time. The retired exec added, "And in hindsight, the forecasted cost was wrong and the volume was 100x what anyone thought."

Intel is notoriously data-driven with how it approaches strategic decisions. Ad guru Ken Segall attests to that in his book Insanely Simple, having worked on marketing campaigns for a wide range of tech giants throughout his long career, including both Apple and Intel. Otellini acknowledged the weakness in this instance: "The lesson I took away from that was, while we like to speak with data around here, so many times in my career I've ended up making decisions with my gut, and I should have followed my gut. My gut told me to say yes."

Samsung would go on to win the processor spot in the first iPhone, with an ARM11 processor designed by ARM Holdings, in what would prove to be the seeds of a long-lasting frenemyship. Samsung would not only use what it learned to further its own smartphone capabilities, but still continues producing ARM-based processors for Apple to this day -- even after Apple switched to its own custom A-chip designs in 2010.

Passing on the iPhone may have been Intel's biggest mistake under Otellini's tenure.

When it comes to dominating markets, it doesn't get much better than Intel's position in the PC microprocessor arena. However, that market is maturing, and Intel finds itself in a precarious situation longer term if it doesn't find new avenues for growth. In this premium research report on Intel, a Motley Fool analyst runs through all of the key topics investors should understand about the chip giant. Click here now to learn more.

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More Expert Advice from The Motley Fool

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

5 FTSE 100 Shares Trading Near 52-Week Lows

LONDON -- I've used a market statistics package to find FTSE 100 companies trading within 11% of their low for the year. The fact that I have had to set my margin so wide demonstrates how strong the market has been.

So, will these companies bounce back, or are they entering a period of decline?

Imperial Tobacco
Recent first-half results from Imperial Tobacco  (LSE: IMT  ) were not pretty. 6% fewer cigarettes were sold than in the same period for 2012. This led to a 3% fall in revenues. In turn, adjusted operating profits were down 7%. Adjusted earnings per share came in 3% lower. Amid all the gloom, there was one silver lining: The dividend was increased 11%.

This leaves the shares trading on 11 times forecast earnings per share for 2013. The dividend increase means that the expected yield is now 5%. 7.2% of EPS growth is forecast for 2014. This is expected to be met by a 10.1% dividend increase. Imperial Tobacco shares today trade on a 2014 P/E of 10.3, with a forecast yield of 5.5%.

Following those results, I expect analysts to reduce their 2014 forecasts. If sales and profits trends continue, the shares may have significant falls ahead of them.

Anglo American
Miner Anglo American  (LSE: AAL  ) is hurting from the fall in metals prices. So far this year, the price of gold is down 14%. Silver has fallen 22%. Falls have not been confined to the precious metals. Prices of base metals such as copper and iron have also fallen heavily on the commodities markets.

This time last year, analysts were expecting Anglo American to deliver $5.30 of EPS in 2013. That consensus estimate is now down to $2.16. The fall in expectations has been met by a 27.3% share price decline.

Anglo American is forecast to pay dividends of $0.88 per share for 2013, rising to $0.92 next year. This does not look enough to stop the fall. At today's price, the expected yield is 3.5%, only slightly better than the payout from the average FTSE 100 share.

Tullow Oil
Just as Anglo American has suffered from falling commodities prices, so has oil explorer Tullow Oil  (LSE: TLW  ) . In the three months, as the price of oil has fallen 12%, Tullow shares are off nearly 14%.

This has led analysts to reduce their profit expectations. This time last year, the City had pencilled in $1.00 of EPS for 2013. This is now down to $0.74.

If Tullow's share price is to turn around, either the price of oil needs to pick up or the company must make new discoveries. Tullow and its shareholders will be hoping that the company's ambitious drilling schedule in Kenya and Ethiopia can emulate the success that the company enjoyed in Uganda. Tullow is investing heavily, acquiring more seismic information on its East African acreage. Management have identified 120 prospects and leads in the area and hopes for a high impact drilling campaign.

Pearson
Although Pearson  (LSE: PSON  ) may be best known to Motley Fool readers as publisher of the Financial Times, the company's biggest division is educational services. While education is bringing in the most money, the publishing division's transition from print to digital sales is crucial to Pearson's profitability.

The most recent trading statement from the company confirmed that profits for 2013 are expected to come in at around the same level as last year. This puts the shares on a 2013 P/E of 15.2, with an expected dividend yield of 4%.

In the last three months, 2014 profit forecasts have been cut 6%. Unless Pearson can get back to earnings growth, then I would expect further share price falls.

Pearson currently trades at around the same rating as the average FTSE 100 share.

Antofagasta
Like Tullow and Anglo American, miner Antofagasta  (LSE: ANTO  ) can do little about the price that it achieves for its products. The effect of falling commodity prices has been the same: a decline in profit expectations and a slump in the company's share price.

In the last 12 months, earnings forecasts for 2013 have fallen from $1.77 per share to $1.14 per share. This has led to a 12.2% share price fall.

The numbers for the year to date are even worse. So far in 2013, Antofagasta shares are down 31%. That's a huge underperformance versus the FTSE 100, which is ahead 12.3% since the turn of the year.

In an environment where commodities prices are falling so quickly, profit forecasts for a price-taking company like Antofagasta cannot be relied upon. Furthermore, the historic dividend yield of 1.5% is not going to be enough to prevent further big falls if economic conditions stay tough.

When a share is engulfed in negative sentiment, buyers can make big returns if the mood turns. For more techniques that could help you build stock market wealth fast, get the Motley Fool report "10 Steps to Making a Million in the Market." This report is 100% free and comes with no further obligation. Just click here to get your copy today.

2 Basic Materials Stocks Under $10 to Watch

 DELAFIELD, Wis. (Stockpickr) -- At Stockpickr, we track daily portfolios of stocks that are the biggest percentage gainers and the biggest percentage losers.

Stocks that are making large moves like these are favorites among short-term traders because they can jump into these names and try to capture some of that massive volatility. Stocks that are making big-percentage moves either up or down are usually in play because their sector is becoming attractive or they have a major fundamental catalyst such as a recent earnings release. Sometimes stocks making big moves have been hit with an analyst upgrade or an analyst downgrade.

Regardless of the reason behind it, when a stock makes a large-percentage move, it is often just the start of a new major trend -- a trend that can lead to huge profits. If you time your trade correctly, combining technical indicators with fundamental trends, discipline and sound money management, you will be well on your way to investment success.

With that in mind, let's take a closer look at a several stocks under $10 that are making large moves to the upside today.

BioFuel Energy

BioFuel Energy (BIOF) is engaged in the production and sale of ethanol and its co-products through its two ethanol production facilities located in Nebraska and Minnesota. This stock closed up 9.4% to $4.04 in Tuesday's trading session.

Tuesday's Range: $3.69-$4.04

52-Week Range: $2.70-$10.75

Tuesday's Volume: 152,000

Three-Month Average Volume: 57,949

From a technical perspective, BIOF soared higher here back above its 50-day moving average of $3.76 with above-average volume. This move is quickly pushing shares of BIOF within range of triggering a major breakout trade. That trade will hit if BIOF manages to take out some near-term overhead resistance levels at $3.99 to $4.12 with high volume. At last check, BIOF hit an intraday high of $4.04 and volume was well above its three-month average action of 57,949 shares.

Traders should now look for long-biased trades in BIOF as long as it's trending above its 50-day at $3.76 or above more near-term support at $3.50 and then once it sustains a move or close above those breakout levels with volume that hits near or above 57,949 shares. If that breakout hits soon, then BIOF will set up to re-test or possibly take out its next major overhead resistance levels at its 200-day of $4.63 to $5.19. Any high-volume move above $5.19 will then put $5.50 to $6 within range for shares of BIOF.

North American Palladium

North American Palladium (PAL) is a precious metals producer that operates Lac des Iles mine in Ontario, Canada. This stock closed up 2.5% to $1.19 in Tuesday's trading session.

Tuesday's Range: $1.14-$1.19

52-Week Range: $0.91-$2.28

Thursday's Volume: 2.16 million

Three-Month Average Volume: 1.71 million

From a technical perspective, PAL trended modestly higher here right above its 50-day moving average at $1.09 with above-average volume. This stock recently came out of a bad downtrend, which took shares from its high of $1.78 to its recent low of 91 cents per share. After tagging that low at 91 cents, shares of PAL saw its downside volatility stop and the stock has reversed course and entered an uptrend. That uptrend has taken PAL from 91 cents to its recent high of $1.20. Shares of PAL are now quickly moving within range of triggering a major breakout trade. That trade will hit if PAL manages to take out some near-term overhead resistance levels at $1.20 to $1.34 with high volume.

Traders should now look for long-biased trades in PAL as long as it's trending above its 50-day at $1.09 or above more support at $1 and then once it sustains a move or close above those breakout levels with volume that hits near or above 1.71 million shares. If that breakout triggers soon, then PAL will set up to re-test or possibly take out its next major overhead resistance levels at $1.45 to $1.70.

To see more stocks that are making notable moves higher today, check out the Stocks Under $10 Moving Higher portfolio on Stockpickr.

-- Written by Roberto Pedone in Delafield, Wis.

Molycorp Crushes Expectations. What’s Next?

On an adjusted basis, Molycorp (NYSE: MCP  ) crushed analyst expectations, beating on both earnings and revenues. Despite favorable comments from the company regarding the duration of 2013, analysts have maintained a grim view of the stock for the rest of the year. This didn't prevent the stock from surging nearly 25% in after-hours trading â€" although this push pulled back a bit, seeing shares trade up about 17% during Friday morning trading. The question for investors now is where do shares actually go given the sharp disconnection between the company's message and that of analysts.

By the numbers
Molycorp reported adjusted EPS of $0.15 on revenues of $146.4 million. While this represents an EPS slide from the $0.07 achieved a year ago, revenues rose and both EPS and revenues were significantly above consensus estimates. Analysts had been expecting a loss of $0.31 per share on revenues of $135.6 million. Shares have been under constant pressure since the rare-earth element sector came under pressure, so any positive news can serve as a major catalyst.

In the earnings call, President and CEO Constantine Karayannopoulos gave a positive outlook:

We are however beginning to see signs of demand returning to more normal levels across several segments. Customers appear to be working down inventories that were built up in 2011 and 2012 and we are starting to return to more normal purchasing patterns. Our production ramp up of Mountain Pass is progressing well.

The statement contains several critical factors for Molycorp, and the entire industry, for which Molycorp has become the standard-bearer. Specific to the company, progress at the Mountain Pass location is a critical step as it represents one of the few significant operations outside of China.

The broader comments are a boon for the industry, explaining why competitors like Avalon Rare Metals (NYSEMKT: AVL  ) traded up nearly 10% and Rare Earth Elements (NYSEMKT: REE  ) surged over 12% on the news. If industrial demand for rare-earth elements is stabilizing and beginning to build, then all three of these companies will benefit. High inventories in the hands of customers have been a major drag on prices for an extended period, and If this trend is reversing, Molycorp should see continuing strength in the later part of the year.

Looking ahead
It will be instructive to see if the better-than-expected report and positive commentary will alter expectations for the rest of the year. Analysts have been hard on the industry, which has seen huge losses for most shares after rare-earth metal prices cratered. The original explosion in rare-earth elements was a reaction to China, the primary controller of these materials, tightening export laws and greatly squeezing supply. As that issue played out, prices fell.

Even with this recent surge, on a long-term basis, shares still look fairly cheap. Rare-earth materials have critical industrial applications that are not likely to disappear in the foreseeable future. As supply and demand find a more sustainable equilibrium, the company should be able to benefit in a sustainable way. Molycorp remains at the speculative end of the spectrum, but it may be a risk worth taking.

Looking for more commodities-based ideas? Download the free report, "The Tiny Gold Stock Digging Up Massive Profits." The Motley Fool's analysts have uncovered a little-known gold miner they believe is poised for greatness; find out which company it is and why its future looks bright -- for free!

Walking Versus Driving: It's About Options, Not Morality

In the following interview, we speak with Jeff Speck, author of Walkable City: How Downtown Can Save America, One Step at a Time. Speck is an architect and city planner in Washington, D.C., oversaw the Mayor's Institute on City Design, and served on the Sustainability Task Force of the Department of Homeland Security.

We discuss the fact that walkability is a matter of making driving optional in urban areas. As Speck explains, that doesn't mean owning or driving a car is wrong. Instead, the goal is for driving to represent just one of many transit options, allowing those who prefer to live without a personal vehicle to do so.

A transcript follows the video.

The Motley Fool's chief investment officer has selected his No. 1 stock for the next year. Find out which stock it is in the brand-new 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.

Isaac Pino: I think you, yourself, mentioned that you just recently purchased a car. You point out that there is a role for automobiles.

Jeff Speck: I recently purchased a bigger car.

Pino: An SUV. I hope you walked to the Fool from D.C., though.

Speck: I biked here from Northwest D.C., because I hadn't done that in a while. It's a nice day, and I thought that would be fun. Now that you've accused me, you can let me excuse myself.

I had mentioned I don't just have a car, I have an SUV. The reason I have an SUV is that my kid's in a charter school and we need to carpool so my wife can drive less, and the only way to carpool is to have the seven seats, so we have an SUV.

I write about this in the book, about our decision to eventually buy a car, after living without one for seven years in D.C., including two years with a kid. I'm sure some of you had the same experience. It's perfectly viable. At least until we had the second kid, it was perfectly viable to live without a car.

The whole point is, the walkable cities are driving-optional cities. In some cities like New York, it might be prohibitively expensive to keep a car, but in most of them you still have that option. The point is that it's one option among many, in a landscape that offers you that choice.

We lived for many years without a car. We'll live again without a car someday. Now is a time in our life when it's useful to us. We're not breaking any rules, even philosophically.

I think it's important to point that out, because some people -- especially some of my admirers, who send me anonymous emails -- think that I think it's wrong to own a car, or that this is an ideological position I'm taking. It's strictly a practical position.

Quickel's techs: AAPL, MSFT, EQIX

The market, in our view, remains basically bullish as the economy continues to improve and corporate earnings continue to grow — especially at our kind of sector-leading growth companies. We see stocks continuing to rise through 2013 and well into 2014.

In the technology sector, it's time to take a serious look at Apple (AAPL); we also recommend Microsoft (MSFT) and Equinix (EQIX). (Editor's note: Congratulations to Stephen on the 28th anniversary of his US Investment Report.)

For Apple, the $700 peak of last fall was doubtless over-inflated. And while Samsung has given Apple stiff smart phone competition, AAPL is selling iPhones and iPads by the jillions.

And it just unveiled a massive stock buyback program that will return $100 billion of cash to shareholders by 2015. Apple remains a vibrant company growing earnings at 15% a year and trading at 7 times forward earnings. As we write, its price is $405, and we can see a move to $500.

Microsoft has sprung to life this spring in the 29 to 30 zone, as bulls look beyond June fiscal 2013's flattish earnings of $2.70-2.75 per share and anticipate gains to $3.10-3.25 in fiscal 2014 and $3.35-3.60 in fiscal 2015. The forward P/E is 10.

Meanwhile, Equinix is particularly intriguing. When we discovered it in 2010, Equinix was busy creating, at great up-front expense, a global platform of data centers that today has attracted over 4,000 user companies.

The stock rose from below $90 to over $220 this February, a three year gain of 143%. Since then EQIX has been treading water at 210-215, even as revenues and earnings keep growing — stalled largely by concern over its 40-plus P/E ratio.

With consensus earnings estimates slated to rise from $3.62 to $4.78 per share this year and to $8.09 in 2014, we have upped our 6- to 12- month price target from $240 to $250.

5 Frugal Living Tips That Won't Leave You Feeling Miserable

Alamy CPA and financial expert Clare K. Levison wants you to know being frugal doesn't mean you have to give up on living the life you want. Her new book, "Frugal Isn't Cheap," offers practical tips and real-life stories about ways you can amass a solid savings account while juggling expenses. "I wanted to get the message out that you can have a great life, really a better life, if you learn to live frugally and to save money," says Levison. "People think that means you have to scrimp and be miserable, but it really means that you need to take the emphasis off your possessions and material things. You need to focus more on free things like spending quality time with your family and friends." Levison says she wrote her book in order to encourage people to practice frugality so it becomes a permanent practice. "The better you get at being frugal, the more fun it is and the more motivated you are," she says. "Being savvy financially is liberating. You're not beholden to banks, credit card companies, or to your parents when you have financial freedom." Here are some of Levison's tips for living frugally. 1. Find a way to save every day. Everyone can find one thing they can save money on every day, says Levison. "If you have a closet full of name-brand clothes and shoes, you should realize that if you have self-confidence and style, you don't need to accumulate all these clothes," says Levison. "You don't need to look frumpy, either. A $15 sweater from a sale rack or a consignment store can look just as good." Skip the designer clothes -- or find other simple ways to save, such as, say, renting a DVD instead of going to the movies -- and put the saved cash in a jar. "Just seeing the cash add up in one week makes you believe you can really start to save money," Levison says. If you use a debit card instead of cash, scoop some of the balance from your checking account into savings at the end of each week for a similar effect. 2. Start an automatic savings plan. After you've begun the process of saving a little every day, Levison recommends transferring money out of every paycheck into a savings account. She suggests saving 20 percent of every check, but since that's a lot to tackle all at once, she says you can start with a smaller amount and reassess every three months. "Gradually work your way up to 20 percent," says Levison.

One caveat: If you have debt, Levison recommends only establishing a $1,000 emergency savings fund rather than funneling all your extra cash into a savings account. "Split the money you would be allocating to savings 50-50 between your debts and building that $1,000 fund," she says. "Once that's established, put every extra dollar toward eliminating your credit card debt." 3. Make a list of goals. Levison recommends writing down a list of your priorities, such as saving for a new home, starting your own business, remodeling your home, or buying a nice retirement condo in Florida. "Having goals that are exciting to you makes it easier to stay focused," says Levison. "Your savings should go to things that are a good long-term investment in your future." For a short-term goal like saving for a vacation, Levison suggests finding a way to carve out extra money from your entertainment budget by cutting back on things like eating out. "Beware of saving money and then spending it on short-term pleasures," says Levison. "Think of being frugal as building wealth for the long term." 4. Find a way to increase your income. Sell your stuff on eBay or Craigslist, says Levison, and you'll simplify your life as well as bring in extra income. Do contract or freelance work in addition to your regular work, offer singing or music lessons or tutoring -- anything to generate extra money. "Any extra income should go directly into your savings," she says. 5. Become a bargain hunter. Get in the habit of seeking out the least costly options in every way, both big and small, says Levison. "Start small with things like buying generic medicines and then adding the difference in cost to your savings account," says Levison. "Shop for deals and stay in a less expensive hotel while on vacation. When you get into larger purchases like cars and a home, your habit of choosing less expensive items will filter through into all your choices." Levison says learning to trim your spending will free you to build a savings safety net and to accumulate long-term financial stability.