2014 Top Stocks Market, Best Stocks Investment In 2014, Top Stocks For 2014: 11/24/13

Hot High Tech Stocks To Invest In Right Now

If you're a car brand, you're the talk of the town in Houston.

If you're a financial service brand, Jacksonville is where folks are likely to chat you up.

And if you're some sort of travel services company, Miami is the hub for brand chatter.

Talk creates sales. Marketers are just beginning to discover that consumers in some cities are far more talkative about their brands than folks living in other cities.

For that matter, residents of these same three cities ��Houston, Jacksonville and Miami ��are more likely than residents of any other major U.S. cities to have verbal or online conversations about brands of any kind.

"Marketers recognize that consumers trust each other more than anyone else," says Ed Keller, CEO of Keller Fay Group, the market research specialist behind the new study to be released Monday, America's Most Talkative Cities. "Every brand wants to be a brand that people are talking about."

Hot High Tech Stocks To Invest In Right Now: Biotron Ltd (BIT.AX)

Biotron Limited, a clinical stage drug development company, focuses on developing small molecule antiviral drugs targeting Hepatitis C virus (HCV), HIV, dengue, and others in Australia. The company is developing novel small molecule therapeutics that target primarily the Vpu protein of HIV and p7 protein of HCV. Its lead drug includes the BIT225, a viroporin inhibitor for the treatment of HCV and HIV infections in a Phase Ib/2a HIV trial. The company also has early stage programs target other viruses, including Dengue; and a research and development program with back-up compounds for its HIV/HCV programs. Biotron Limited is based in North Ryde, Australia.

Hot High Tech Stocks To Invest In Right Now: Arsenal Energy Inc Com Npv (AEI.TO)

Arsenal Energy Inc. engages in the exploration, development, and production of petroleum and natural gas reserves in Canada and the United States. It holds interests in 14 core and 22 minor properties in the provinces of Alberta, British Columbia, and Saskatchewan in Canada; and 2 core and 4 minor properties in North Dakota in the United States. The company produces heavy oil, light and medium oil, natural gas liquids, natural gas, and coal bed methane. As of December 31, 2011, it had interests in 195.2 net producing and 327.1 net non-producing oil and natural gas wells, as well as 41 net service wells. The company had 2.4 million barrels of oil equivalent of proved reserves and 3.6 million barrels of oil equivalent of proved plus probable reserves. It sells crude oil under 30-day evergreen contracts, as well as natural gas in the spot market. The company was formerly known as Arsenal Capital Inc. and changed its name to Arsenal Energy Inc. in May 2003. Arsenal Energy Inc. was incorporated in 2000 and is headquartered in Calgary, Canada.

10 Best Stocks To Invest In 2014: Pirelli Ec(PECI.MI)

Pirelli & C. S.p.A., through its subsidiaries, engages in the design, development, manufacture, and marketing of tyres primarily to motor vehicle and motorbike manufacturers worldwide. It offers tyres for motor vehicles, sports utility vehicles, light commercial vehicles, motorbikes, buses, heavy trucks, and agricultural machinery; and steelcord, a fundamental element for radial tyres. The company is also involved in the creation of technologies to reduce emissions from diesel vehicles and heating plants. Its principal products include Gecam white diesel that reduces particulate formation; and Feelpure to retrofit to commercial vehicles, and for installation in new cars. In addition, Pirelli & C. S.p.A. engages in the production of fuel from waste, as well as photovoltaic energy and environmental cleanup activities. The company was founded in 1872 and is headquartered in Milan, Italy.

Hot High Tech Stocks To Invest In Right Now: Cicada Ventures Ltd. (CID.V)

Cicada Ventures Ltd. engages in the acquisition, exploration, and evaluation mineral properties in Canada. The company was formerly known as Lyra Resources Ltd. and changed its name to Cicada Ventures Ltd. in July 2008. Cicada Ventures Ltd. is based in Vancouver, Canada.

Hot High Tech Stocks To Invest In Right Now: Anixter International Inc. (AXE)

Anixter International Inc., together with its subsidiaries, distributes enterprise cabling and security solutions, electrical and electronic wire and cable products, original equipment manufacturer (OEM) supply fasteners, and other small parts. The company operates in Enterprise Cabling and Security Solutions; Electrical and Electronic Wire and Cable segment; and OEM Supply segments. The Enterprise Cabling and Security Solutions segment offers copper and fiber optic cable and connectivity, access control, video surveillance, cabinets, power, cable management, voice and networking switches, and other ancillary products to finance, transportation, education, government, healthcare, and retail industries. The Electrical and Electronic Wire and Cable segment provides electrical and electronic wire and cable, shipboard cable, support and supply products, low-voltage cable, instrumentation cable, industrial communication and control products, security cable, connectors, industri al Ethernet switches, and voice and data cable to the industrial and OEM markets. The OEM Supply segment product offers nuts, bolts, screws, washers, clips, gaskets, brackets, and rivets, as well as other fasteners and small components to OEM. The company�s customers include manufacturing, resource extraction, telecommunications, internet service providers, finance, education, healthcare, transportation, utilities, aerospace and defense, and government as well as contractors, installers, system integrators, value-added resellers, architects, engineers, and wholesale distributors. It distributes its products primarily in North America, Europe, Latin America, and the Asia Pacific. The company was formerly known as Itel Corporation. Anixter International Inc. was founded in 1957 and is headquartered in Glenview, Illinois.

Hot High Tech Stocks To Invest In Right Now: Autobytel Inc.(ABTL)

Autobytel Inc. operates as an automotive marketing services company in the United States. It assists automotive retail dealers and manufacturers to market and sell new and used vehicles to consumers through its online purchase request referrals, dealer marketing products and services, and online advertising programs and data products. The company provides vehicle purchase request programs, including new vehicle purchase request program, which allows consumers to submit requests for pricing and availability of specific makes and models; used vehicle purchase request program that allows consumers to search for used vehicles according to specific search parameters, such as the price, make, model, mileage, year, and location of the vehicle; and finance purchase request program designed to provide consumers the opportunity to obtain vehicle financing and other services from dealers or finance institutions. Its network of company-owned consumer-facing automotive Websites compris e Autobytel.com, which provide consumers the information and tools to aid them with their automotive purchase decisions and the ability to submit inquiries requesting dealers to contact the consumers for purchasing or leasing vehicles. In addition, the company provides products and services that assist dealers in connecting with in-market consumers and closing vehicle sales. The company, formerly known as Autobytel.com Inc., was founded in 1995 and is headquartered in Irvine, California.

Hot High Tech Stocks To Invest In Right Now: KDR Industrials Ltd (KDR.V)

KDR Industrials Ltd., formerly North American Medical Services Inc., through its wholly owned subsidiaries, North American Medical Services Inc. (NAMS-Nevada), NuCelle Inc. (NuCelle) and N.A.M.S. Capital Corp. (NAMS-CC), is engaged in the manufacture and sale of skin treatment formulations, products, and systems bearing brand of NuCelle and Mandelic Marine Complex. NuCelle�� provides skin care formulations for all skin types, sensitive, ethnic, trouble-prone, and aging. The Company operates two product lines: NuCelle Rx and NuCelle Mandelic Marine Complex. Its NuCelle Rx, physician only line of products, is formulated for, and distributed to physicians and medical professionals. Its NuCelle Mandelic Marine Complex, the aesthetician only line of products, consists of a five step regimen, including Mandelic Wash, Mandelic Mint Scrub, Mandelic Toner, Mandelic Laser-lift Serum and Mandelic Anti-Oxidant Treatment Moisturizer.

Hot High Tech Stocks To Invest In Right Now: Pan American Goldfie(MXOM.OB)

Pan American Goldfields Ltd. engages in the exploration, development, and production of mineral properties in Mexico and Argentina. The company holds interest in two gold and silver projects, including the Cieneguita project and the Encino Gordo project, located in the Sierra Madre region of the state of Chihuahua, Mexico. It also has interest in the Cerro Delta gold project, located in Argentina. The company was formerly known as Mexoro Minerals, Ltd. and changed its name to Pan American Goldfields Ltd in July 2010. Pan American Goldfields Ltd. is based in Vancouver, Canada.

Helping Female Advisors Navigate a Male-Dominated Profession

“We are losing women in this profession and we do have a gender issue in this profession,” Rebecca Pomering of Moss Adams Wealth Advisors told a room full of women—and some men—during Schwab’s IMPACT conference Monday.

Speaking on a women’s panel along with Pomering, Peggy Ruhlin of Budros, Ruhlin & Roe, Inc., added that “25% of the attendees at conferences were women when I started, and that hasn’t changed”—a fact that she said both “surprises and upsets” her.

Ruhlin and Pomering were joined by Schwab’s Naureen Hassan as well as Suanne Ramar of Nelson Capital Management. They each shared their experiences in the profession and offered some sage—and frank—advice to the other female advisors in attendance.

Ramar, who said she entered the advisory field “by accident” right out of college, noted the importance of mentoring. The woman who ended up mentoring her had an MBA and CFA, she said, two credentials she eventually secured for herself. Mentoring, she said, has to be a “path that’s best for both parties.”

Pomering agreed. “Mentoring has to be a two-way street,” she said. “You mentor people because they help you advance in your career and skills as well.” As her mentor said to her: “The more successful you are the more we can grow this.”

Ruhlin urged the women in attendance to join their local chapters of financial planning-related associations, which she said “can pay off big time.” While not having a mentor herself, Ruhlin said that early in her career she became president of her local chapter of the “old IAFP” [now the FPA].

“When I was president of the local IAFP, there was a big one-day stock market crash and ABC News decided to cover this event,” Ruhlin recalled. ABC News went to the IAFP looking for someone to interview, she said, “and they suggested me; it was casual day and I had to send my husband home to get an outfit.” Peter Jennings ended up being the newscaster who interviewed her on Monday night, “right before Monday night football,” so “everybody saw this show—I got all sorts of calls. What do you think that kind of publicity would cost?”

The women also agreed that challenges can be masked as opportunities. While opportunities came her way because she is a woman, Pomering said, “the bigger opportunities come from proving yourself in those initial opportunities.”

Ramar told attendees not to fall into the trap of being “self-deprecating” when opportunities come their way.

“Don’t say I was really lucky rather than being smart. Let’s be both lucky and smart and take advantage of that opportunity.”

---

Check out Beware a Fiduciary ‘Wild West’: Graff on ThinkAdvisor.

Car Challenge ranks the best compact cars

OWINGS MILLS, Md. -- For new-car shoppers, 30 is the new 20, as in $30,000.

The average car on the road is more than 11 years old — from a time when $20,000 bought a lot of car. Folks who look to trade that car are in for sticker shock: The average paid for new vehicles now is about $31,000.

But the big surprise from the Cars.com-USA TODAY-MotorWeek $20,000 Compact Car Challenge, our latest head-to-head comparison: You still can get a lot of car for $20,000.

It'll be a compact, not a midsize car, but today's compacts are roomier than ever — more leg and knee room, in fact, than some midsizers.

And you can have some goodies. Navigation, a backup camera, sophisticated infotainment, even all-wheel drive were on one or more cars in the Challenge.

And the fuel economy can be high, tickling — sometimes exceeding — 40 miles per gallon on the highway.

The Challenge aimed to find the best low-price, fuel-efficient compact car a budget-conscious buyer could get for no more than $20,000 and a federal city-highway fuel economy rating of at least 28 mpg.

CHALLENGE RESULTS: Top pick, ranking of the rest, capsule review, photo gallery of all the cars

The seven contenders who met that bar: Toyota Corolla. Kia Forte, Hyundai Elantra, Nissan Sentra, Honda Civic, Ford Focus, Subaru Impreza.

A key lesson: Picking the perfect-for-you $20,000 compact sedan is a wrestling match of choices and priorities. No one car at that price has it all.

For instance, the Ford Focus tested had the sweetest-handling chassis, the judges agreed, and it was cheapest, at $18,200. But they also found it noisy and with an interior that was tight on space and downscale compared with the others. So have a ball on curving roads, but you'll have to roll up the rear windows by hand, and forget about pairing your phone because it lacked Bluetooth.

Or take the Subaru Impreza. It was pricier, at $19,737, but was the only one with all-wheel drive, and would be a no-brainer pick for w! intry climes. Back doors yawned wide for easy in/out — perfect if you use the rear seat a lot. But some considered it noisy, and using the Bluetooth was maddening.

Or The Nissan Sentra was the most expensive, at $19,945, but was the only one with a navigation system. The interior felt upscale, the air-conditioning was exceptional, it had a backup camera and was smooth and quiet. But the ride got choppy on bumpy roads, and it leaned and didn't want to follow the steering in hard corners.

Overall, however, you wouldn't feel deprived in most of our test cars.

What about moving up to a roomier, but less-festooned midsize? Probably can't do it. Most tend to start about $22,000 or $23,000.

And it might be smarter financially to stay with the compact. Not only will it cost a bit less, it will hold its value a bit better over time, according to a projection by TrueCar.com's ALG, specialists in forecasting future value of cars.

10 Best Warren Buffett Stocks For 2014

Investor nonpareil Warren Buffett was close to the Graham family, which owned The Washington Post until it agreed in August to sell the paper to Amazon.com founder and CEO Jeff Bezos. Buffett's company, Berkshire Hathaway, for years was a major owner of Washington Post Co. stock. And he has been buying up newspapers over the past couple of years.

So why didn't the Oracle of Omaha purchase the Post when it went on the block?

In fact, Buffett did consider it briefly, according to Fortune magazine. But he decided to pass because he didn't want the financially struggling daily to ultimately be a burden to either to his company or his family, the magazine reported.

A spokeswoman said Buffett was traveling and wouldn't be available to comment.

Buffett, who once said he wouldn't buy newspapers "at any price" given the tumult in the industry in the digital age, has changed his mind in a big way. He now owns 30 dailies.

10 Best Warren Buffett Stocks For 2014: Assured Guaranty Ltd(AGO)

Assured Guaranty Ltd., through its subsidiaries, provides credit protection products to public finance, infrastructure, and structured finance markets in the United States and internationally. The company offers insurance, reinsurance, and credit derivative products that protect holders of debt instruments and other monetary obligations from defaults in scheduled payments, including scheduled interest and principal payments. It provides policies issued directly to the holders of insured obligations at time of issuance and those issued in the secondary market; and assumed reinsurance contracts written to third parties. The company insures various types of securities, including taxable and tax-exempt obligations issued by the United States or municipal governmental authorities, utility districts, or facilities; notes or bonds issued to finance international infrastructure projects; and asset-backed securities issued by special purpose entities. Assured Guaranty Ltd. markets its credit protection products directly to issuers and underwriters of public finance, infrastructure, and structured finance securities, as well as to investors in such debt obligations. The company was founded in 2003 and is based in Hamilton, Bermuda.

Advisors' Opinion:

[By Sue Chang]
Assured Guaranty Ltd. (AGO) �is forecast to post third-quarter earnings of 63 cents a share.
[By Eric Volkman]
Assured Guaranty (NYSE: AGO ) is attempting two well-tried moves to keep shareholders happy. The first is a quarterly dividend distribution amounting to $0.10 per share of its stock, to be handed out on June 5 to shareholders of record as of May 22. That amount matches Assured Guaranty's previous disbursement, which was paid in March.
[By John Maxfield]
Maxfield: As I noted in the introduction, this was one of the most contentious legal battles to spawn from the financial crisis. What made this case so much more acrimonious than, say, the lawsuits brought against Bank of America by other monolines such as Assured Guaranty (NYSE: AGO ) and Syncora Holdings? Given some of the adverse rulings that went against Bank of America toward the tail end, was it a mistake for the bank's attorneys to string the case along as opposed to settle it, and thereby avoid the potentially damaging legal precedent?

10 Best Warren Buffett Stocks For 2014: Overstock.com Inc.(OSTK)

Overstock.com, Inc., together with its subsidiaries, operates as an online retailer offering discount brand name, non-brand name, and closeout merchandise in the United States and internationally. The company?s merchandise include bed-and-bath goods, furniture, home decor, kitchenware, watches and jewelry, shoes, electronics and computers, sporting goods, apparel, designer accessories, home and garden products, media, music, luggage, health and beauty products, baby products, crafts and sewing products, office products, gifts and flowers, toys and hobbies, and pet products. It also operates online car listing service that allows sellers to list vehicles for sale and allows buyers to review vehicle descriptions; travel shopping site, which offers discount travel packages, flights, rental cars, and other travel-related products and services; and insurance shopping service for auto and home insurance, as well as provides books, magazines, CDs, DVDs, and video games. The comp any markets its products and services through its operating Internet websites, which include overstock.com, o.co, and o.biz. The company was formerly known as D2-Discounts Direct and changed its name to Overstock.com, Inc. in October 1999. Overstock.com, Inc. was founded in 1997 and is based in Salt Lake City, Utah.

Advisors' Opinion:

[By Jeremy Bowman]
What: Shares of Overstock.com (NASDAQ: OSTK ) were overachieving again today, climbing as much as 20% after the company posted a blockbuster earnings report.
[By Rich Smith]
Amazon.com (NASDAQ: AMZN ) reported earnings yesterday that showed the e-commerce giant is just barely eking out a living, with an operating profit margin of 0.5% (and a negative net). And now, Overstock.com (NASDAQ: OSTK ) has announced a plan that might squeeze Amazon's profit margin even further.
[By George Acs]
It started with the always interesting CEO of Overstock.com (OSTK) congratulating Steve Cohen, the CEO of SAC Capital, on his SEC indictment and invoking a reference to Star Wars to describe Cohen's darkness, at least in Patrick Byrne's estimations.
[By Michael Lewis]
It's been a great� months for investors in e-commerce store Overstock.com (NASDAQ: OSTK ) , as the stock has rocketed up more than 330%. The momentum didn't stop in last week's earnings release, either, as sales climbed double digits and earnings were up a ridiculous 687%. For six consecutive quarters, the company has increased revenue growth, fueling the bullish speculation behind the stock. With the major turnaround behind it, and other signs of stabilization, the question is whether Overstock still offers growth-hungry investors an attractive investment. Let's take a look at recent earnings and guidance for clues.

Best Dividend Companies To Watch For 2014: Development Secs(DSC.L)

Development Securities PLC engages in property development, trading, and investment operations primarily in the United Kingdom. Its property portfolio includes retail, mixed-use, industrial, office, and residential properties. The company is based in London, the United Kingdom.

10 Best Warren Buffett Stocks For 2014: Angel Gold Corp.(CA.V)

Angel Gold Corp., an exploration stage company, engages in the identification, acquisition, and exploration of mineral properties in Colombia. The company primarily explores for gold. Its projects include the Buritica West Gold Project, a 375 hectare concession located in the Department of Antioquia; and the El Cafetal Gold Project, a 135 hectare mine located 12 kilometers north of the Marmato disseminated gold-silver district. The company was formerly known as Caerus Resource Corporation and changed its name to Angel Gold Corp. in October 2012. Angel Gold Corp. was incorporated in 1988 and is headquartered in Vancouver, Canada.

10 Best Warren Buffett Stocks For 2014: Star Pharmaceutical Limited (X64.SI)

STAR Pharmaceutical Limited engages in the manufacture and sale of western and traditional Chinese medicine-formulated prescription drugs. The company primarily offers antibiotics, cerebrovascular drugs, cardiovascular drugs, and other specialized drugs in various dosages and administration forms ranging from powder injections, lyophilized powder injections, and liquid injections to tablets, capsules, and granules. It sells its products through a network of approximately 398 distributors to hospitals, clinics, and pharmacies in the People�s Republic of China. The company was founded in 1993 and is based in Haikou City, the People�s Republic of China. STAR Pharmaceutical Limited is a subsidiary of DB NOMINEES (S) PTE LTD.

10 Best Warren Buffett Stocks For 2014: Trio Gold Corp (TGK.V)

Trio Gold Corp., a junior mining company, engages in the acquisition, maintenance, exploration, and development of mineral properties in the United States. It primarily focuses on gold, silver, and copper mining properties. The company holds a 100% interest Rodeo Creek property that consists of 29 contiguous mineral claims covering an area of approximately 547 acres located in Elko County, Nevada. Trio Gold Corp. was founded in 1977 and is based in Calgary, Canada.

10 Best Warren Buffett Stocks For 2014: Celadon Group Inc.(CGI)

Celadon Group, Inc., through its subsidiaries, provides transportation services between the United States, Canada, and Mexico. It offers a range of truckload transportation services, including long-haul, regional, less-than-truckload, intermodal, and logistics services. The company transports various types of freight comprising tobacco, consumer goods, automotive parts, home products and fixtures, lawn tractors and assorted equipment, light bulbs, and various parts for engines. It also operates an e-commerce business that provides discounted fuel, tires, insurance, and other products and services to small and medium-sized trucking companies through its website, www.truckersb2b.com. In addition, the company provides warehousing and trucking services, as well as freight brokerage services. Celadon Group, Inc. was founded in 1985 and is based in Indianapolis, Indiana.

10 Best Warren Buffett Stocks For 2014: Tassal Group Ltd(TGR.AX)

Tassal Group Limited engages inn the hatching, farming, processing, marketing, and sale of Atlantic salmon products in Australia. The company offers fresh, smoked, frozen, canned, hot smoked, and smallgoods range of salmons. It offers its products through salmon shops in Kew and Salamanca. Tassal Group Limited was founded in 1986 and is based in Hobart, Australia.

10 Best Warren Buffett Stocks For 2014: RGC Resources Inc.(RGCO)

RGC Resources, Inc., through its subsidiaries, engages in the distribution of natural gas in Virginia. It is primarily involved in the regulated sale and distribution of natural gas to residential, commercial, and large industrial and transportation customers through underground mains and service lines in Roanoke, Virginia, and the surrounding localities. The company also provides non-regulated services. In addition, it offers information technology consulting services, as well as utility and regulatory consulting services to other utilities. The company operates approximately 1,045 miles of transmission and distribution pipeline; owns and operates eight metering stations; and a liquefied natural gas storage facility located in Botetourt County. RGC Resources, Inc. was founded in 1912 and is based in Roanoke, Virginia.

10 Best Warren Buffett Stocks For 2014: PMFG Inc.(PMFG)

PMFG, Inc., through its subsidiaries, provides custom-engineered systems and products primarily to power generation, natural gas infrastructure, and refining and petrochemical processing markets worldwide. The company operates through two segments, Process Products and Environmental Systems. The Process Products segment offers separation and filtration systems and products that improve efficiency, reduce maintenance, and extend the life of energy infrastructure by removing liquid and solid contaminants from gases or liquids, as well as by separating different liquids. This segment?s separation and filtration systems include vane separators, centrifugal separators, filter separators, three-phase separators, absolute separators, fuel gas conditioning systems, gas filters, nuclear plant steam separators, inlet air treatment systems, pulsation dampeners, heat exchangers, and industrial silencers. The Environmental Systems segment engages in designing, engineering, fabricating , and selling environmental control systems and products for air and noise pollution abatement. This segment offers selective catalytic reduction systems that convert NOx emissions produced by burning hydrocarbon and organic fuels, such as coal, gasoline, natural gas, wood, grass, and grain into nitrogen and water vapor; and oxidation systems, which oxidize carbon monoxide and various volatile organic compounds into carbon dioxide and water without the use of additional chemical reagents. The company markets its products primarily through independent representatives, as well as directly to customers. PMFG, Inc. was founded in 1933 and is based in Dallas, Texas.

Dodge & Cox Funds - Finding Fixed Income Opportunities Abroad

Dodge & Cox manages discuss the opportunities and risks they are seeing abroad in a video here.
Also check out: Dodge & Cox Undervalued Stocks Dodge & Cox Top Growth Companies Dodge & Cox High Yield stocks, and Stocks that Dodge & Cox keeps buying

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SPY STOCK PRICE CHART

US Stock Futures Flat Ahead Of Durable-Goods Data

Pre-open movers

US stock futures were mostly flat in early pre-market trade, ahead of economic data. Data on durable goods orders for September will be released at 8:30 a.m. ET, while the Reuter's/University of Michigan's consumer sentiment index for October will be released at 9:55 a.m. ET. Data on wholesale inventories for August will be released at 10:00 a.m. ET. Futures for the Dow Jones Industrial Average fell 1 point to 15,453.00, while the Standard & Poor's 500 index futures declined 1.10 points to 1,747.40. Futures for the Nasdaq 100 index gained 5.75 points to 3,376.75.

A Peek Into Global Markets

European markets were mostly lower today, with the Spanish Ibex Index dropping 0.65%, London's FTSE 100 index rising 0.13% and STOXX Europe 600 Index declining 0.10%. German DAX 30 index fell 0.03% and French CAC 40 Index declined 0.13%.

Asian markets ended mostly lower today. Japan's Nikkei Stock Average tumbled 2.75%, China's Shanghai Composite fell 1.45% and Hong Kong's Hang Seng Index declined 0.60%. Australia's ASX/S&P500 rose 0.22% and India's Sensex declined 0.20%. Japan's core consumer price index increased 0.7% y/y in September, versus a 0.8% rise in August. The consumer price index rose 0.1% on a monthly basis.

Broker Recommendation

Analysts at JP Morgan downgraded United Continental Holdings (NYSE: UAL) from "neutral" to "underweight." The target price for United Continental Holdings has been lowered from $32.50 to $25.

United Continental's shares fell 1.76% to $30.75 in pre-market trading.

Breaking news

Weyerhaeuser Co (NYSE: WY) reported a 34% rise in its third-quarter profit. Weyerhaeuser's quarterly profit surged to $157 million, or $0.27 per share, from $117 million, or $0.22 per share, in the year-ago period. To read the full news, click here. Sorrento Therapeutics (NASDAQ: SRNE) announced the pricing of an underwritten public offering of 4,150,000 shares of common stock at an offering price of $7.25 per share. To read the full news, click here. Live Nation Entertainment (NYSE: LYV) has acquired Voodoo Music & Arts Experience, New Orleans' critically-acclaimed music festival. To read the full news, click here. B/E Aerospace (NASDAQ: BEAV) today announced that its Board of Directors has appointed Werner Lieberherr, who is currently President and Chief Operating Officer of B/E Aerospace, Inc., as co-Chief Executive Officer of B/E Aerospace, Inc. effective as of January 1, 2014. To read the full news, click here.

Posted-In: JP Morgan US Stock FuturesNews Eurozone Futures Global Pre-Market Outlook Markets

Partner Network Around the Web, We're Loving... Learn to Use Trading Platforms Like Hedge Fund Traders do Rumsfeld: Denial of Benefits to Fallen Soldiers' Families 'Inexcusable' Come See How the Pro's Trade in this Exclusive Webinar Facebook, Baidu Lead Big Caps Beating Shutdown What Should You Know About AMZN? Most Popular UPDATE: Jefferies Downgrades Exelon Corporation on Valuation Earnings Scheduled For October 24, 2013 Apple Rumored To Ship 10 Million iPad Air Units In Q4 Icahn Makes a Big Profit on Netflix, Offers Lesson in Selling 3 Small Caps With Dividends over 4% That Could Grow Even Bigger Top Tweets From Stocktoberfest 2013 Related Articles (BEAV + LYV) US Stock Futures Flat Ahead Of Durable-Goods Data Live Nation Entertainment Acquires Voodoo Music & Arts Experience B/E Aerospace Names Werner Lieberherr Co-CEO His Name Is Kid Rock, Detroit Is His City UPDATE: Canaccord Genuity Initiates Coverage on B/E Aerospace as 2014 Acceleration is Expected Across All Segments Benzinga's Top Initiations View the discussion thread. Partner Network #marketfy-ae-block { display: none; border: 2px solid #0a3f75; overflow: hidden; width: 300px; height: 125px; text-align: center; background-color: #45719E; position: relative; z-index: 1; } #marketfy-ae-block a { display: block; width: 300px; height: 125px; position: relative; z-index: 2; color: #ffffff; text-decoration: none; } #marketfy-ae-block-countdown-text { color: #f9fc99; padding: 0px 0 0 0; font-size: 19px; font-weight: bold; line-height: 19px; } #marketfy-ae-block-countdown-text-start { font-size: 12px; } #marketfy-ae-block-countdown { padding: 5px 0 5px 0; font-size: 26px; } #marketfy-ae-block-signup { padding: 5px 47px; } #marketfy-ae-block-signup:hover { background-color: #457a1a; } #marketfy-ae-block #marketfy-ae-block-logo { display: block; padding: 3px 0 0 0; margin: 0; } #marketfy-ae-block-logo { text-indent: -9999px; } #marketfy-ae-block-free { display: block; position: absolute; top: 7px; right: -23px; width: 80px; height: 16px; line-height: 16px; text-align: center; opacity: 1; -webkit-transform: rotate(45deg); -moz-transform: rotate(45deg); -ms-transform: rotate(45deg); transform: rotate(45deg); font-size: 13px; font-weight: normal; color: #333333; background-color: yellow; z-index: 500; text-shadow: 1px 1px #999999; } #marketfy-ae-block-arrow { position: relative; width: 60px; height: 60px; z-index: 10; margin: -80px 0 13px -21px; } #marketfy-ae-block-arrow img { height: 60px; width: auto; }

World War Z Economy: Is That a Zombie in Your Portfolio?

It can be a ghastly business being an investor today. Where once upon a time there were natural laws that governed the survival of companies, when markets penalized firms for bad management decisions and rewarded those with innovative ideas, that’s not always the case today.

The unintended consequence of the Federal Reserve’s extraordinary stimulus has been that some businesses (including some utilities) should not have survived the downturn, but are being sustained by cheap debt and other artificial means that may mask terminal business weakness. We like to call them corporate zombies.

And given peak earnings season’s proximity to Halloween, it’s eerily appropriate for investors to wonder whether it will be marred by a parade of corporate zombies. Even as many cheer the S&P 500′s new highs, there is concern that the market may be significantly overvalued when viewed from the standpoint of corporate earnings estimates.

The S&P is up 24.9 percent so far this year, which is its best gain since 2009, when the index began its bull run. Since the bear market bottom in March 2009, the S&P has soared 158 percent, driven largely by the Federal Reserve’s economic stimulus program, greater investor confidence, a rebound in earnings at some firms, and a housing recovery, according to various market analysts.

Chart A: Third-Quarter Earnings Growth Estimates

But earnings for S&P 500 companies are expected to have grown between 3.4 percent and 3.8 percent from a year ago (See Chart A), according to various estimates, which would be the smallest quarterly increase in a year, according to S&P Capital IQ. At the start of 2013, by contrast, third-quarter earnings were expected to grow at nearly three times that pace.

According to Thomson Reuters, there have been 99 negative earnings per share (EPS) preannouncements issued by S&P 500 corporations for the third quarter, compared to 19 positive EPS preannouncements. Of the 29 companies in the S&P 500 that have reported third-quarter earnings thus far, 52 percent have reported earnings above analyst expectations. This is lower than the long-term average of 63 percent and is also below the trailing-year average of 66 percent.

In this article, we’ll first review the ways in which capital allocation decisions can affect a company’s earnings per share, and then drill down into how utilities themselves are deploying their capital. And we’ll look at how these actions can ultimately deliver value as expressed in the measure known as shareholder yield.

The Federal Reserve’s unprecedented monetary easing has forced interest rates to historic lows, which has been a boon to borrowers of all stripes. Indeed, some companies have used cheap debt to goose their valuations by buying back stock or paying dividends.

Of course, buying back or selling stock is not always a negative, and must be viewed in terms of the company’s overall growth and income prospects. Nor is the use of debt to pay shareholders necessarily a negative if it’s a bridge to future income-producing opportunities, such as when utilities build plants and other infrastructure and must make significant capital expenditures that will later be recovered in rates.

The Many Ways to Deliver or Destroy Value

What many investors sometimes don’t understand is that if the stock is trading at intrinsic value, buybacks and dividends are pretty much the same thing, except dividends have worse tax treatment. However, if the stock is trading below intrinsic value, there is no better use of cash than for a company to repurchase it own shares. Indeed, Warren Buffett is a huge proponent of this.

Unfortunately, given the huge divide between earnings and valuations, many stocks are likely trading above intrinsic value. And buybacks at these levels could actually destroy shareholder value. Since 2009, companies have bought back more than $1 trillion of their own stock, according to Rosenblatt Securities.

Another big question is whether valuations are derived from true earnings (i.e., income) or some form of leverage that could impact future growth. While debt can help fuel growth, excessive borrowing can put companies and their shareholders at greater risk if income growth subsequently fails to materialize due to botched business ventures, reduced demand, or cost disallowances, among other reasons.

Moreover, the low interest rates resulting from the Fed’s monetary policy have essentially forced income investors to pile into riskier asset classes, such as high-yield equities, to replace the income they’d normally get from bonds. That’s helped push up valuations of normally staid dividend stocks and given some firms carte blanche to conduct serial equity issuances that could eventually dilute shareholders and impair future earnings growth.

And the stock market is starting to feel frothy as a result: At the start of 2013, investors were paying $14 for every $1 of S&P 500 earnings, according to S&P Capital IQ. They are now paying a whopping $16.

According to a Meridian Compensation Partners report, “Most companies keep a close watch on their dilution to ensure costs to shareholders are kept within acceptable limits. This is typically done through a comparison of dilution levels to a group of similarly sized peer companies within the same general industry. If potential dilution (overhang) is kept within a reasonable range (25 percent to 30 percent) of the 50th percentile of peers, it will likely remain acceptable from a shareholder perspective.”

But how can the average investor know when a firm is being attentive to the issue of dilution–or raising capital to respond to a fundamental business weakness that could eventually come at the expense of shareholders? According to Thomson Reuters data, a total of $491.2 billion has been raised in equity capital so far this year, up 17 percent from the same period last year. Equity financing is sometimes considered a last resort for funding, as the “pecking order” theory of corporate finance gives first preference to an internal source of funds, such as retained earnings, then debt, and finally secondary equity issuances.

As a review, there are five ways that management can choose to spend a company’s earnings: They can pay out a cash dividend, buy back stock, pay down debt, reinvest in the business, or acquire other companies. The first three give cash back to shareholders, while the latter two are efforts to invest for growth.

Utilities and Shareholder Yield

In the utilities industry, there are a number of firms that are issuing stock or buying it back to various degrees–paying or earning as little as a couple of million to hundreds of millions (See Chart B).

While we believe the best way to know if these transactions are good for shareholders is to undertake an individual company Dupont analysis or breakdown of return on equity, as detailed in the upcoming issue of Utility Forecaster, shareholder yield is another tool that can show a firm’s commitment to increasing shareholder value. It captures the three ways in which a company’s management can distribute cash to shareholders: cash dividends, stock repurchases and debt reduction.

Though shareholder yield is helpful in identifying promising names, it shouldn’t be used as the sole criterion for stock selection, as it can’t detect sudden changes in the overall health of a company. Indeed, there’s no substitute for thoroughly researching a firm’s financials.

Dividends are the most obvious form of distributing cash. Buybacks also increase shareholder value, provided the shares repurchased are cancelled or held in treasury, and not used as a device to offset dilution from stock option grants to management and other employees. Reducing debt can also produce a de facto dividend; assuming the value of the firm remains the same, shareholder value is increased as debt is reduced.

Companies that compensate shareholders via all three distribution channels could be indicating significant corporate strength. And companies whose shareholder yield is driven by just one factor could be implicitly suggesting certain worthwhile areas of inquiry–such as whether a firm is signaling its shares are overvalued.

According to one dividend analyst, “Another good use of shareholder yield is that it tells you approximately what rate of return you can expect if the company doesn’t grow at all and if the stock valuation remains static. The shareholder yield is an internal use of cash, so as long as the company maintains the status quo, they can keep growing dividends and buying back shares. So, the shareholder yield is your baseline rate of return; any core growth is added onto that and results in the total return (along with changes in stock valuation).”

Chart B: Utility Stock Issuances and Buybacks

Created with YCharts

In examining the top two stock sellers and top two stock buyers listed above, we illustrate how these companies are managing their efforts to return cash to shareholders (See Chart C). The chart clearly shows that those firms that were making stock buybacks had better shareholder yields than those that were making stock issuances, namely Otter Tail Corp (NYSE: OTTR) and The AES Corp (NYSE: AES).

Chart C: Utility Stock Buyers and Sellers: Shareholder Yield Comparison

Created with YCharts

When breaking down the components of shareholder yield, we found both AES and Otter Tail distributed cash to shareholders via all three channels: cash dividends, stock repurchases and debt reduction. And these positive practices appear to have flowed through to total return: AES is up 34.8 percent over the last year, while Otter Tail is up 30.7 percent. Both results exceed the S&P 500’s 24.8 percent total return over that same period.

Though both firms’ recent performances are impressive, this analysis is only a precursor to the thorough investigation necessary to determine their potential as long-term investments. Otherwise, we’d be guilty of being the investment zombies that we hope to avoid.

Top 5 Oil Stocks To Invest In Right Now

Ethanol blends of 15%, or E15, just got a green light from the Supreme Court. Trade groups representing the oil, food, and automaker industries challenged that such high blends of ethanol would damage engines, raise food prices, and hike the price paid at the pump by consumers. The Supreme Court decided to leave current Environmental Protection Agency rules in place after the consortium (in three separate cases) failed to provide evidence that those claims were, in fact, harmful to its members. It sure isn't good news for the argument against E15, but it is vindication for ethanol producers. Since biofuels figure to be staying put with mandated growth for the time being, let's review four of the best biofuels stocks.

Clean Energy Fuels (NASDAQ: CLNE ) The leader in compressed natural gas, or CNG, for the transportation industry got a boost from the EPA earlier this year when CNG sourced from landfills gained the ability to qualify for advanced biofuel subsidies. It's the next best thing to cellulosic ethanol credits, if not better. That can add a nice revenue stream to Clean Energy's already promising business model, and expedite its journey to profitability. Except for a tad more paperwork, the company doesn't have to change operations one bit. What's not to like?

Top 5 Oil Stocks To Invest In Right Now: Worthington Energy Inc (WGAS.PK)

Worthington Energy, Inc. (Worthington), formerly Paxton Energy, Inc., incorporated July 30, 2004, is an oil and gas exploration and production company with assets in Texas and in the Gulf of Mexico. Worthington�� assets in Texas consist of a minority working interest in limited production and drilling prospects in the Cooke Ranch area of La Salle County, Texas, and Jefferson County, Texas, all operated by Bayshore Exploration L.L.C. (Bayshore). The Company�� assets in the Gulf of Mexico consist of a leasehold working interests in certain oil and gas leases located offshore from Louisiana, upon which no drilling or production has commenced as of December 31, 2011, and a 10.35% interest in the recently drilled I-1 well and a 2% royalty interest in 14,400 acres in the Mustang Island Tract 818. On March 27, 2012, it acquired certain assets from Black Cat Exploration & Production, LLC.

In Texas, the Company has working interests ranging from 4% to 31.75% (ne t revenue interests ranging from 3% to 23.8125%) in the various wells. In the Gulf of Mexico it has a 70% leasehold working interest, with a net revenue interest of 51.975%, of certain oil and gas leases in the Vermillion 179 tract and 10.35% interest in the recently drilled I-1 well and a 2% royalty interest in 14,400 acres in the Mustang Island Tract 818. As of December 31, 2011, it had one producing well that generated average total monthly net revenue.

The Mustang Island 818-L Field, located in the Kleberg County waters of the Gulf of Mexico, is a field re-habilitation project targeting bypassed or only partially produced gas-condensate. Total production from the wells within the seismic coverage was 125.6 billion cubic feet. In January 2011, the Hercules Offshore 205 jack-up rig was contracted to re-enter the I-Well on the Mustang License Area. The oil and gas leases are located in the VM 179, which is in the shallow waters of the Gulf of Mexico offshore fr om Louisiana. VM 179 is at 85 inches water depth approxima! te! ly 46 miles offshore Louisiana in the Gulf of Mexico.

Top 5 Oil Stocks To Invest In Right Now: Caiterra International Energy Corp (CTI.V)

CaiTerra International Energy Corporation (Caiterra), formerly Cyterra Capital Corp., is a Canada-based company is engaged in the exploration and development of oil and gas properties. The Company�� project includes Faust, Amadou and Lac La Biche. On March 9, 2012, the Company completed its qualifying transaction with West Pacific Petroleum Inc. (WPP), pursuant to which the Company acquired all of WPP�� working interests in certain petroleum and natural gas leases and an oil sand lease in the Lac La Biche and Amadou Projects located in Alberta, Canada and certain other assets (the QT Oil and Gas Properties) from West Pacific Petroleum Inc. (WPP). On December 17, 2012 the Company acquired the Faust Property located just north of the Swan Hills oil field and south of the Town of Slave Lake.

Top 10 Oil Stocks To Invest In 2014: Fleetcor Technologies Inc (FLT)

FleetCor Technologies, Inc. (FleetCor) is an independent global provider of specialized payment products and services to businesses, commercial fleets, oil companies, petroleum marketers and government entities in countries throughout North America, Latin America and Europe. During the year ended December 31, 2011, the Company processed more than 215 million transactions on its networks and third-party networks. The Company operates in two segments: North American and International segments. The Company provides its payment products and services in a variety of combinations to create payment solutions for its customers and partners. In August 2011, the Company acquired Mexican prepaid fuel card and food voucher business based in Mexico City, Mexico. On December 13, 2011, the Company acquired Allstar Business Solutions Limited, a fleet card company based in the United Kingdom. In July 2012, the Company acquired a Russian fuel card company. In July 2012, the Company acquired CTF Technologies, Inc.

The Company uses third-party networks to deliver its payment programs and services. In order to deliver its payment programs and services and process transactions, it owns and operates closed-loop networks through which it electronically connects to merchants and captures, analyzes and reports information. The Company also provides a range of services, such as issuing and processing. The Company markets its payment products directly to a range of commercial fleet customers, including vehicle fleets of all sizes and government fleets. Among these customers, it provides its products and services to small and medium commercial fleets. The Company also manages commercial fleet card programs for oil companies, such as British Petroleum (BP) (including its subsidiary Arco), Chevron and Citgo, and over 800 petroleum marketers.

The Company sells a range of fleet and lodging payment programs directly and indirectly through partners, such as oil companies and petroleum marketers. It provides it! s customers with various card products that function like a charge card to purchase fuel, lodging and related products and services at participating locations. The Company supports these cards with issuing, processing and information services that enable it to manage card accounts, facilitate the routing, authorization, clearing and settlement of transactions. The Company provides these services in a variety of outsourced solutions ranging from an end-to-end solution (consisting issuing, processing and network services) to limited back office processing services.

In addition, the Company offers a telematics solution in Europe that combines global positioning, satellite tracking and other wireless technology to allow fleet operators to monitor the capacity utilization and movement of their vehicles and drivers. The Company offers prepaid fuel and food vouchers and cards in Mexico that may be used as a form of payment in restaurants, grocery stores and gas stations. Approximately 10.4% of its revenue during the year ended December 31, 2011 came from its lodging and telematics products.

During 2011, the Company owns and operates eight closed-loop networks in North America and internationally. Fuelman network is the Company�� primary fleet card network in the United States. Corporate Lodging Consultants network (CLC) is the Company�� lodging network in the United States and Canada. The CLC Lodging network covers more than 17,700 hotels across the United States and Canada. Commercial Fueling Network (CFN) is the Company�� members only unattended fueling location network in the United States and Canada. Keyfuels network is the Company�� primary fleet card network in the United Kingdom.

CCS network is the Company�� primary fleet card network in the Czech Republic and Slovakia. Petrol Plus Region (PPR) network is the Company�� primary fleet card network in Russia, Poland, Ukraine, Belarus, Lithuania, Estonia and Latvia. Mexican network is the Company�� fuel! and food! card and voucher network in Mexico. Allstar network is the Company�� fleet card network in the United Kingdom. In the United States, the Company issues corporate cards that utilize the MasterCard payment network, which includes 176,000 fuel sites and 398,000 maintenance locations across the country. The networks of locations owned by the Company�� oil and petroleum marketer partners in both North America and internationally are utilized to support the card programs of these partners.

UNION TANK Eckstein GmbH & Co. KG (UTA) operates a network of over 46,000 fleet card-accepting locations across 38 countries throughout Europe, including more than 31,000 fueling sites. DKV operates a network of over 45,000 fleet card-accepting locations across 36 countries throughout Europe, including more than 30,500 fueling sites. In Mexico, the Company issues fuel cards and food cards that utilize the Carnet payment network, which includes approximately 8,700 fueling sites and 78,890 food locations across the country.

The Company competes with Wright Express Corporation, Comdata Corporation, U.S. Bank Voyager Fleet Systems Inc., Edenred and Sodexo, Inc.

Advisors' Opinion:

[By Steve Sears]
New stocks in what Goldman calls the “Hedge Fund VIP list,”�include Actavis (ACT), Baidu (BIDU), Berkshire Hathaway (BRK.B), Crown Castle International (CCI), Entergy Louisiana (ELB), �Equinix (EQIX), Facebook (FB), Fleetcor Technologies (FLT), W.R. Grace (GRA), MetLife (MET), Macquarie Infrastructure (MIC), Micron (MU), Time Warner Cable (TWC), and Time Warner (TWX).
[By Rich Smith]
Moving quickly to establish synergies on its Australian purchase of Fleet Card from General Electric (NYSE: GE ) last month, Norcross, Ga.-based FleetCor (NYSE: FLT ) is buying another fuel card-issuing and payment-processing business right next door.

Top 5 Oil Stocks To Invest In Right Now: Talisman Energy Inc.(TLM)

Talisman Energy Inc., an upstream oil and gas company, engages in the exploration, development, production, transportation, and marketing of crude oil, natural gas, and natural gas liquids. It primarily operates in North America, the North Sea, and southeast Asia. The company was founded in 1925 and is headquartered in Calgary, Canada.

Advisors' Opinion:

[By Value Digger]
Manitok's competitive advantage is its management team, who knows well where the shallow opportunities exist, from years of bypassing many conventional reservoirs and drilling deeper targets for Talisman Energy (TLM).

Top 5 Oil Stocks To Invest In Right Now: Ubiquitech Software Corp (UBQU)

Ubiquitech Software Corporation, incorporated on January 11, 2007, is focused on the proposed business encompassing two business units or divisions, including an esoteric clinical laboratory and a research and development facility attached to the esoteric clinical laboratory. Until June 2009, the Company�� business was to develop and market specialized computer software to help manage electronically stored data through the Company�� wholly owned subsidiary companies, Datamatrix Software Corporation and Enterpriseware Software Corporation.

The Company had designed and planned to develop a software application for health care businesses known as Ubiquitech Enterprise Storage Manager (UESM). UESM was designed to provide computer data storage technicians with reporting and system problem notification. As of August 31, 2009, the Company had not generated any revenues.

Janet Yellen's Nightmare For 2014: Liquidating The Fed's $4 Trillion Balance Sheet

Talk about creating moral hazard. The Fed has cornered almost 40% of all Treasuries over 5 years in maturity. I've just discovered the bottom line for QE: the Fed's 4 years of QE, QE1, QE2, and QE3 has accumulated 36% of all Treasury securities between 5 years and 10 years in maturity plus 40% of those government bonds over 10 years in maturity as well as 25% of all the mortgage backed securities not owned by Fannie Mae Fannie Mae and Freddie Mac Freddie Mac. Just how do you suppose Chairman Yellen will devise an exit strategy to this concentrated ownership that makes up some $3 trillion of the central bank's $4 trillion balance sheet?

Short of a miracle, Chairman Yellen faces one of the most imposing and possibly impossible challenges facing the financial markets over the next several years. If anything will derail the economy, force the stock market into a mighty retreat and destroy all hope of further expansion of the residential real estate market, it is the Fed's quandary over the retreat from quantitative easing. And you can be sure that the potential overhang of Treasury securities and mortgage backed bonds overhanging the market are not going to look like bargains to the cash-rich central banks of China, Japan, Russia, to the pension funds and endowments.

Preventing a depression in 2008 looks easier and more straight-forward to me than the devilish predicament the Fed faces when QE finally is petered out and the central bank is left holding a record amount of securities that one way or another are going to start losing value as the cost of money creeps higher. All geniuses need apply at Fed with their schemes to get us out of this trap. We are going to have to start looking at this problem early in 2014 without denying its severity and multiple ramifications.

I say it will be impossible to liquidate $3 trillion in any short term or medium time period without causing the bond and stock markets to crash. And it's even possible the Fed might have to position another $500 billion to $1 trillion bonds if the job numbers don't look promising.

Therefore, the Fed might be forced to hold the bonds to maturity, requiring more than a decade to see the securities run off, delivering trillions in cash to the central bank. I can't even get my head around what that predicament would mean down the road.

Or it begins to liquidate bonds and interest rates rise while the bond market declines it means that the Fed 's profits from its book will be reduced, wiping out its ability to pay a huge dividend to the Treasury fir use in running the government. Honestly, I'm not going to shed that many tears for this loss, though others will be wailing and tearing out their hair.

I'm sure right now the economists at the regional Feds are writing papers to suggest the various policy choices we face. The potential nightmare I was warned about by a Wall Street elder is that the Fed might face large paper losses on its portfolio of intermediate Treasuries, on which thankfully it is not required to mark to market.

To complicate the challenge even more, as the Treasury continues to finance the government by selling new securities into the market at rates much higher than 2.80% for the 10 year security, the cost of financing the U.S. government rises as well. Not only does the Treasury lose income from the Fed, it then costs more to sell more securities in a falling market. So much for this bit of worrisome "forward guidance" from the Croesus Chronicles. More later when the clouds lift.

The Sweeter Stock: PepsiCo or Coca-Cola?

Earnings Analysis Pepsi Co (NYSE: PEP)

It is well known than Pepsi has been winning over Coca-Cola (NYSE: KO) in blind taste tests conducted through the decades, including modern neuro-scientific tests. Yet people prefer Coke when they know what they are sipping. But there's more to PepsiCo than its cola. PepsiCo's Carbonated Soft Drinks (CSD) share is only 40% of its business now (a 10% decrease in the last decade). The company's non-carbonated drinks range from Lipton tea to Tropicana and Naked labels. It is worth noting that of late Americans are also drinking less orange juice which could be bad for PepsiCo's Tropicana label; the market's open interest in positions was recently at its lowest in 20 years.

Luckily for PepsiCo, over 40% of its revenues come from salt not sugar based items. Snacks marketed under Frito-Lay brands account for over 60% of American salty snack consumption. The company also has Good-For-You and Better-For-You portfolios with lower fat and increased nutrition options that include several Quaker brand foods aimed at health-aware customers.

Which company is doing better this earnings season: PepsiCo or Coca-Cola? We published our Q3 2013 earnings analysis of The Coca-Cola Company this week in Coca-Cola (NYSE: KO) Earnings Analysis: Is it going better with Coke? PepsiCo's earnings are the subject of this article.

Is PepsiCo lacking strategic focus compared to its peers? Find out this Fundamental Analysis report

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Based on PepsiCo, Inc.'s (NYSE: PEP) preliminary financial results for the quarter ended 2013-08-31 we provide a peer-based analysis of the company (see the peer list at the end of this post). Our analysis is based on the company's performance over the last twelve months (unless stated otherwise). The table below shows the preliminary results along with the recent trend for revenues, net income and returns.

Quarterly (USD million) 2013-08-31 2013-06-30 2013-03-31 2012-12-31 2012-08-31

Revenues	16,909.0	16,807.0	12,581.0	19,954.0	16,652.0
Revenue Growth %	0.6	33.6	(37.0)	19.8	1.2
Net Income	1,913.0	2,008.0	1,075.0	1,661.0	1,902.0
Net Income Growth %	(4.7)	86.8	(35.3)	(12.7)	27.8
Net Margin %	11.3	11.9	8.5	8.3	11.4
ROE % (Annualized)	33.9	35.5	19.1	30.2	36.1
ROA % (Annualized)	10.0	10.6	5.7	8.9	10.4

Some Operating Leverage

PepsiCo, Inc.'s current Price/Book of 5.7 is about average in its peer group. The market expects PepsiCo to grow at about the same rate as its chosen peers (PE of 19.4 compared to peer average of 20.0) and to maintain the peer average return (ROE of 30.3%) it currently generates.

Our analysis shows that the company's average net profit margins of 10.0% and relative asset efficiency (asset turns of 0.9x compared to peer average of 0.7x) give it some operating leverage. PepsiCo's net margin has increased 0.6 percentage points from last year's low but is still below its five-year average net margin of 11.1.

Questions about Long-term Strategy

It seems that the market has some questions about the company's long-term strategy because though PepsiCo's revenues have grown faster than the peer average (14.8% vs. 6.1% respectively for the past three years), the market only gives the stock an about peer average PE ratio of 19.4.

PepsiCo's annualized rate of change in capital of 27.1% over the past three years is greater than the peer average of 4.8%. However, this investment level has only generated a peer average return on capital of 14.8% averaged over the same three years. This average return on an above average capital investment suggests the company is overinvesting.

Understatement of Reported Net Income?

PepsiCo's net income margin for the last twelve months is around the peer average (10.0% vs. average of 10.2%). This average margin and relatively conservative accrual policy (4.9% vs. peer average of 2.7%) suggests possible understatement of its reported net income.

PepsiCo's accruals over the last twelve months are positive suggesting a buildup of reserves. In addition, the level of accrual is greater than the peer average -- which suggests a relatively strong buildup in reserves compared to its peers.

Trend Charts for PepsiCo, Inc. (NYSE: PEP)

Quarterly and Annual Revenues Trend for PepsiCo (NYSE: <a class= Quarterly and Annual Net Margin Trend for PepsiCo (NYSE: <a class= Quarterly and Annual Accruals Trend for PepsiCo (NYSE: <a class=

Peers used for PepsiCo, Inc. Earnings Analysis (NYSE: PEP)

The following peer-set was used: The Coca-Cola Company (NYSE:KO), Nestle S.A. Sponsored ADR (OTC BB:NSRGY), Unilever NV ADR (NYSE:UN), Mondelez International, Inc. Class A (NASDAQ:MDLZ), Monster Beverage Corporation (NASDAQ:MNST) and Dr Pepper Snapple Group, Inc. (NYSE:DPS).

Is PepsiCo lacking strategic focus compared to its peers? Find out this Fundamental Analysis report

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IBM Proves the Death of Growth, $20 EPS Target Just Too Costly

International Business Machines Corp. (NYSE: IBM) is proving that it has very limited growth opportunities in new revenues. The only saving grace for the rest of us these days is that IBM is now no longer the largest DJIA stock since Visa Inc. (NYSE: V) is a DJIA stock.

Big Blue’s earnings came in up 10% at $3.99 per share on an adjusted basis and sales came in down 4% at $23.72 billion. Thomson Reuters was calling for estimates of $3.96 EPS but on sales of closer to $24.75 billion. Our view is that there is very little to get excited about in this earnings report and shares are taking it on the chin as a result.

If you back out restructuring and one-time charges, IBM’s earnings would have been $3.68 per share and that is up 11%. Operating margins were 49.1% on an adjusted basis and 48% on a net basis. IBM also maintained its operational earnings guidance of $16.25 to $16.90 per share versus estimates from Thomson Reuters of $16.89 per share.

IBM is still maintaining that it expects to achieve its long-term plan of $20.00 in earnings per share by the end of 2015. 24/7 Wall St. believes that this earnings target is coming at too high of a price on its core business and that it is possibly gutting itself in the years beyond that target.

The key metric we pay attention to is the backlog of services and this was $141 billion as of the end of the quarter. Last quarter this was put at $141 billion as well. Here are some of the key metrics:

Software revenue was up 1 percent, and up 2 percent adjusting for currency; Key branded middleware up 3 percent; up 4 percent adjusting for currency; Services revenue was down 3 percent, up 1 percent adjusting for currency; Global Business Services revenue flat, but was up 5 percent adjusting for currency; Services backlog was up 2% to $141 billion, but this would have been up 6 percent adjusting for currency; Systems and Technology revenue was down 17 percent, and down 16 percent adjusting for currency; System z mainframe revenue was up 6 percent; and up 7 percent adjusting for currency; Growth markets revenue were down 9 percent, but down only 5 percent adjusting for currency; Business analytics revenue was up 8 percent year to date; Smarter Planet revenue was up over 20 percent year to date; Cloud revenue was up over 70 percent year to date.

IBM shares closed up 1.1% at $186.73 against a 52-week trading range of $178.71 to $215.90, but now shares are trading down over 5% and at a 52-week low in the after-hours trading session.

5 Best Stocks To Buy For 2014

The first half of 2013 has been relatively slow for�NVIDIA� (NASDAQ: NVDA ) , with shares mostly keeping pace with the broader market. This is expected, as the company made the conscious decision to delay the Tegra 4 time frame in order to focus on Tegra 4i. The graphics business continues to hold up admirably in the face of a slow PC market, as NVIDIA's target gamer market remains resilient.

NVIDIA is now entering the licensing business with its graphics architecture, which could translate into new opportunities in mobile. The company could now potentially earn wins at the top two smartphone vendors,�Apple� (NASDAQ: AAPL ) and Samsung, which aren't interested in using Tegra processors directly.

In the following video, Fool contributor Evan Niu, CFA, and Eric Bleeker, CFA, discuss NVIDIA at current prices.

The tech world has been thrown into chaos as the biggest titans invade one another's turf. At stake is the future of a trillion-dollar revolution: mobile. To find out which of these giants is set to dominate the next decade, we've created a free report called "Who Will Win the War Between the 5 Biggest Tech Stocks?" Inside, you'll find out which companies are set to dominate and give in-the-know investors an edge. To grab a copy of this report, simply click here -- it's free!

5 Best Stocks To Buy For 2014: Southern Cross Media Group(SXL.AX)

Southern Cross Media Group Limited provides media services in Australia. It engages in the broadcasting of regional free to air commercial television and radio stations; and the management of online radio content. The company owns regional radio and free-to-air television, and provides entertainment, news, and information to viewers and listeners. It owns approximately 14 regional free-to-air television licenses; and 68 commercial radio stations in 38 license areas in Queensland, New South Wales, Victoria, Tasmania, South Australia, and Western Australia. The company was formerly known as Macquarie Media Group and changed its name to Southern Cross Media Group Limited in December 2009. Southern Cross Media Group Limited is based in South Melbourne, Australia.

5 Best Stocks To Buy For 2014: Northwest Bancshares Inc.(NWBI)

Northwest Bancshares, Inc. operates as the holding company for Northwest Savings Bank that offers various banking and consumer finance services. The company offers consumer and commercial deposits, such as checking accounts, savings accounts, money market deposit accounts, term certificate accounts, and individual retirement accounts. Its loan portfolio comprises one- to four-family residential real estate loans, multifamily residential and commercial real estate loans, home equity loans and lines of credit, and commercial business loans, as well as consumer loans, including automobile loans, sales finance loans, unsecured personal loans, credit card loans, and loans secured by deposit accounts. It also offers trust, investment management, actuarial and benefit plan administration, brokerage services, title insurance, and municipal bonds, as well as involves in the ownership and operation of properties. As of December 31, 2009, the company operated 171 community-banking of fices in northwest, southwest, and central Pennsylvania; western New York; eastern Ohio; Maryland; and southeastern Florida. It also operated 51 consumer finance offices in Pennsylvania. The company was founded in 1896 and is headquartered in Warren, Pennsylvania.

Advisors' Opinion:

[By Rich Duprey]
Northwest Bancshares (NASDAQ: NWBI ) announced today that it will be paying a special dividend of $0.12 per share in May to�supplement the regular dividend for the first quarter of 2013, which it prepaid back in December in a bid to�accelerate the distribution of cash�to help shareholders offset some of the risk of higher taxes.

Best Bank Stocks To Buy For 2014: Genworth Financial Inc (GNW)

Genworth Financial, Inc., a financial security company, provides insurance, wealth management, investment, and financial solutions in the United States and internationally. The company offers various insurance and fixed annuity products, including life and long-term care insurance products; payment protection insurance products for consumers primarily to meet specified payment obligations; and wealth management products, such as managed account programs with advisor support and financial planning services. It also provides mortgage insurance products and related services to insure prime-based, individually underwritten residential mortgage loans or flow mortgage insurance; and mortgage insurance on a structured or bulk basis, as well as offers services, analytical tools, and technology that enable lenders to operate and manage risk. In addition, the company provides institutional products consisting of funding agreements, funding agreements backing notes, and guaranteed in vestment contracts. Genworth Financial, Inc. distributes its products and services through financial intermediaries, advisors, independent distributors, affinity groups, and sales specialists. The company was founded in 2003 and is headquartered in Richmond, Virginia.

Advisors' Opinion:

[By Brian Pacampara]
Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, financial services company Genworth Financial (NYSE: GNW ) has earned a respected four-star ranking.
[By James E. Brumley]
Never let it be said I didn't follow up on my prior ideas and commentaries. In November of last year I said MGIC Investment Corp. (NYSE:MTG), Radian Group Inc. (NYSE:RDN), and Genworth Financial Inc. (NYSE:GNW) were budding bullish idea.

For those of you with good memories, you'll likely know why that sounds a little bit "off." Though GNW, MTG, and RDN had all three been quite bullish that particular day as well as flashed bursts of bullishness in the days leading up to that November 1st look, the market was still more than a little pessimistic on on insurers like Radian Group, MGIC Investment, and Genworth Financial. I'm sure glad I was willing to go out on a limb. All three stocks have gone on to make big - and surprising - gains.

So do I come here to pound my chest on RDN, GNW, and MTG? Nope - not at all. I'm chiming in again today to let you know if you got in on my advice, it's now time to lock in those gains and get out.

Just so there's no confusion, I don't see any particular overbearing problems hanging over the industry's head. It's just that these stocks have outlived their usefulness and opportunity for us.

Take MGIC Investment Corp. for instance. MTG has advances 340% since then, yet still isn't profitable on a net trailing basis. Positive earnings are sill in the cards. But, priced at 27.6 times 2014's projected income, the value argument is gone, as well as the technical one.

Ditto for Genworth Financial and Radian Group Inc. Both stocks have posted huge gains over the past ten months, and while their forward-looking ratios are more attractive, after a 118% and 200% runup, respectively - given the back stories and timing - you have to believe the best-case scenario has already been priced into RDN and GNW shares.

Just for the record, I would be more than willing to buy back into any and all of these names once we get a healthy pullback and start to see decent evidence of a bullish reversal. While we
[By Sally Jones]

Genworth Financial Inc. (GNW): Sold Out
Up 142% over 12 months, Genworth Financial has a market cap of $6.26 billion and trades with a P/E of 14.10. The current share price is $12.68.
[By Jon C. Ogg]
The first list of 24/7 Wall St. stocks under book value for the month of August are Apache Corp. (NYSE: APA), Fresh Del Monte Produce Inc. (NYSE: FDP), Genworth Financial Inc. (NYSE: GNW), Ingram Micro Inc. (NYSE: IM) and JetBlue Airways Corp. (NASDAQ: JBLU). We generally have�focused on net asset values and tangible book values, as well as forward price-to-earnings multiples, share price performance, analyst expectations via the Thomson Reuters consensus price target and more.

5 Best Stocks To Buy For 2014: Sabina Gold & Silver Corp (SBB.TO)

Sabina Gold & Silver Corp., an exploration company, engages in the acquisition, exploration, and development of mineral resource properties in Canada. Its principal properties include the Back River Project comprising 45 federal mineral leases and 13 federal mining claims covering approximately 52,324 hectares; and the Wishbone Project containing 181 mining claims totaling approximately 3,000 square kilometers located in Nunavut in the Canadian Arctic. The company was formerly known as Sabina Silver Corporation and changed its name to Sabina Gold & Silver Corp. in October 2009. Sabina Gold & Silver Corp. was incorporated in 1966 and is headquartered in North Vancouver, Canada.

5 Best Stocks To Buy For 2014: The Fresh Market Inc.(TFM)

The Fresh Market, Inc. operates as a specialty grocery retailer. The company offers various perishable product categories, including meat, seafood, produce, deli, bakery, floral, sushi, and prepared foods; and non-perishable product categories, such as traditional grocery and dairy products, as well as specialty foods, which include bulk, coffee and candy, and beer and wine. As of March 20, 2012, it operated 115 stores in 21 states located in the southeast, midwest, mid-Atlantic, and northeast of United States. The company was founded in 1981 and is headquartered in Greensboro, North Carolina.

Advisors' Opinion:

[By Rick Munarriz]
5. Everything checks out
The Fresh Market (NASDAQ: TFM ) saw its shares pop 8% higher on Wednesday after posting strong quarterly results.
[By Andrew Marder]
The news was so good that Whole Foods' main national rival, The Fresh Market (NASDAQ: TFM ) , got caught up in all the investor love, with its shares up 5%.
[By Lauren Pollock]
Fresh Market Inc.'s(TFM) fiscal third-quarter profit inched up 1.6% as top line was boosted by new store openings and rising demand at existing locations. But shares slid 15% to $42.96 in premarket trading, as growth for the period was weaker than analysts expected and the specialty grocer trimmed its full-year profit outlook.
[By Ben Levisohn]
The Fresh Market’s (TFM) earnings didn’t look so fresh–and its shares are tumbling today.
REUTERS
The high-end grocery store reported a profit of 32 cents, in line forecasts, and revenue of $354.8 million, above forecasts for $355.8 million. The guidance, however, disappointed, as the Fresh Market now expects earnings of $1.50 to $1.57 per share, below expectations for $1.57.

In a note yesterday, Sterne Agee’s Charles Grom and Renato Basanta argued that the numbers aren’t so bad. They write:

2Q results came in mostly as expected, but investor focus is likely on FY13 EPS guidance, which was reduced by $0.02 at the midpoint. We point out that a large part of the guidance revision is due to higher costs from opening new stores more quickly (a positive, in our view), and believe the essence of TFM’s growth story remains intact. In fact, 2Q traffic accelerated and TFM’s FY13 SSS view was increased. Net, we continue to like TFM, particularly in the context of a choppy retail environment.

UBS analysts Jason DeRise and Mark Carden, disagreed, and cut the stock to Neutral from Buy last night. They write:

TFM outperformed the market by 33% since its Q4 results on March 6. At the time, the market questioned the TFM business model following weak Q4 12 same store sales growth (1.9%) and guided its EPS mid point 8% below consensus. We believe the market underappreciated the cyclical nature of TFM�� gourmet grocery sales. Its comp sales began to recover in H1, while it continues to open up new stores at rapid pace (+17% y/y in 13E). But, its new guidance suggests another 6 months until the better EPS growth kicks in, which differed from our expectations.

Investors sided with UBS. Shares of Fresh Market have dropped 10% to $48.80 today. Competitor Kroger (KR) has gained 1.2% to $36.83, while Whole Foods Market (WFM) has risen 1.5% to $52.53 and Safeway (SWY) has advanced 1.2% to $11.40.