2014 Top Stocks Market, Best Stocks Investment In 2014, Top Stocks For 2014: 3/23/14

ETF Outlook for Friday, March 28, 2014 (EWZ, UNG, EWP)

Related EWZ A New Brazil Rally In ETFs? (EWZ, BRAF, BRF, BRXX, PBR) ETF Outlook For Thursday, February 27, 2014 (KWEB, BIDU, SMH, INTC, EWZ, IEIL)

ETF Outlook for Friday, March 28, 2014

iShares MSCI Brazil Index ETF (NYSE: EWZ)

The breakout last week has continued for the Latin American ETF, with EWZ up 4.6 percent Thursday as it hit a new 2014 high. The ETF was led by a 7.7 percent gain in Petrobras, a major oil and gas company in the country. The ETF has now moved into an extreme overbought level with the RSI reading at 97. This suggests the ETF could be due for a short-term pullback, however when momentum is high an ETF can continue to rally with an overbought RSI for days if not weeks.

United States Natural Gas ETF (NYSE: UNG)

The cold weather continues to grip the Northeast and natural gas prices remain high. UNG pulled back to support at the $23.50 area this week before beginning to attract buyers again. The ETF was up 2.7 percent Thursday and closed at a new one-week high as volume picked up. Technically the chart is suggesting the ETF could continue its run to the $26 area based on the recent action.

Related: ETFs Shrugging Off The Selling (DHS, SMH, IGF, INTC)

The one concern that investors have is that once the winter is over will it lead to a major decline in natural gas prices? On the flip side, as more LNG leaves the country it will push up prices here at home. The key will be to watch the $23.50 support area for answers.

iShares MSCI Spain Index ETF (NYSE: EWP)

Overnight, a surprise fall in the inflation number out of Spain had a ripple affect across the region. The 0.2 percent annual rate decline in consumer prices was the weakest number since October 2009 and well below expectations. Borrowing costs for Spain and Italy fell to their lowest levels in three years and stocks were trading higher.

The mindset is that the inflation number will lead to more action from the European Central Bank that could lead to a weaker Euro and stronger stocks. The Euro traded down to the lowest level in three weeks after the number was announced. EWP will be a good gauge as to how stocks will react to deflation concerns in the region.

Posted-In: Commodities Emerging Market ETFs Markets ETFs Best of Benzinga

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3 Things That Went Bank of Americaâ€™s Way This Week

Bank of America's (NYSE: BAC ) big dividend boost wasn't the only good thing to happen to the bank this week.

Investors in Bank of America were understandably preoccupied over the past several days, as the news of the big bank's dividend hike, to $0.05 per share, hogged all their attention. Though the increase wasn't huge, the psychological boost was enormous, since this was the first time B of A was able to raise its dividend since the financial crisis.

But that wasn't the only positive news for Bank of America in the last week of March. Here are a few more tidbits of good news that came along, giving the big bank's investors even more reason to smile.

1. A big payment to resolve mortgage claims
The announcement that B of A would be paying the Federal Housing Finance Agency $9.5 billion to settle all outstanding residential mortgage bond claims is a real biggie, taking a huge liability off of the big bank's plate. Knowing that 88% of these types of claims have now been put to bed is likely making investors breathe easier, as well.

2. Charges against a former CEO are put to bed
Former Bank of America CEO Kenneth Lewis, the man who helped turn the bank into the behemoth that current chief Brian Moynihan has been furiously trying to trim down, has settled charges against him related to the acquisition of Merrill Lynch.

Lewis and B of A have both settled claims by the New York Attorney General's office that investors were deceived about the financial status of Merrill during its sale to B of A in late 2008. Both portions of the settlement, Lewis' $10 million and the bank's $15 million will be paid by Bank of America, finally putting "paid" to an unpleasantly nagging issue left over from the tumultuous early days of the financial crisis.

3. A mortgage-related lawsuit gets thrown out
In a blow to the U.S. Department of Justice, a federal magistrate judge in Bank of America's hometown of Charlotte, North Carolina, ruled in favor of the bank in a mortgage-backed securities case on Thursday. The DOJ was bringing suit against B of A over $850 million in MBSes that it said were misrepresented to investors, using a law called the Financial Institution Reform, Recovery and Enforcement Act of 1989.

The FIRREA, which enables the government to sue entities based upon damage done to federal institutions, was used to good effect last year against B of A in the so-called "Hustle" suit. That case, in which prosecutors claimed that fraud in Countrywide's fast-paced mortgage loan production pipeline led to losses at Fannie Mae and Freddie Mac, was a huge win for the federal government.

The DOJ will appeal the ruling, in which the judge stated that FIRREA has historically been used only in cases involving actual mortgage loans, and not MBSes. Right now, though, it's another win for B of A, during one of its most satisfying weeks in years.

The banking sea-change that you can invest in
While Bank of America gets its ducks in a row, there's a brand-new company that's revolutionizing banking, and is poised to kill the hated traditional brick-and-mortar banking model. And amazingly, despite its rapid growth, this company is still flying under the radar of Wall Street. To learn about about this company, click here to access our new special free report.

Gurusâ€™ Particular Bid on Sinopec

As China enters a new phase of economic development, characterized by slower growth, analysts begin to wonder about the future of companies deeply related to state activities. Common knowledge indicates that as the economy's growth slows down, activities at the industries associated with that growth will slow too. Nonetheless, that simple take on economics can be deceiving and an analysis of Sinopec (SIN) will uncover considerable growth opportunities. The reasoning is the following. First, the Chinese economy will not stop growing. Second, the slowdown is not a product of model exhaustion, but a mere capacity readjustment. Third, the oil and gas industry will remain a key to continue growing for the Chinese economy. And the priority placed upon the oil and gas is where growth opportunities for the industry lie. Gurus are divided over this position, but their trading activities on Sinopec have not ceased.

Rumors About No Growth

For fiscal 2013, Sinopec reported that operating profit was up 9.7% year-on-year, and net profit attributable to equity shareholders was up 5.8% year-on-year. Moreover, the firm saw stable growth in oil and gas production in the upstream business, while achieving an oil reserve replacement ratio of over 100%. Additionally, improvements in the refined oil pricing mechanism returned the business to operating profit, at the same time that retail volume and sales of high value added oil products were increased. Last, the chemical segment adjusted raw material structure and lowered raw material cost.

Those results, as expressed by the same report were achieved with an economic environment where the world economy slowly recovered while economic growth for China slowed down. The offset of the environment is a direct consequence of increasing exploration and development activities in five key areas of China, optimization of product mix according to market conditions, focusing market strategy on high-octane gasoline and jet fuel sales while introducing premium products ahead of competitors, and adjusted facility utilization rate and production plan for the chemicals segment.

During 2013, Sinopec saw a drop on capital expenditure of 7% when compared to projections made at the beginning of the year. The exploration and production segment accounted for 50% of total expenditures, while refining and marketing accounted for another 25%. The remaining share was distributed mostly between acquisitions and the chemicals segment.

Looking Ahead

For the upcoming year, Sinopec expects a continuing recovery of the world economy with a Chinese economy growing steadily. And as expressed in the introduction, management expects a growing domestic demand for oil products and chemicals. Also, the firm expects a shift in the structure of consumption, a trend already being addressed by management.

Amid all the good market signs, and managerial decisions to improve Sinopec's overall performance, there are a few issues that must be addressed. Given the not totally free nature of the Chinese economy, the company is exposed to price controls by government officials. The obvious impact of these measures is reduced profits, especially in this particular industry where the state plays a major a role. Additionally, domestic areas continue to reach maturity while offshore and abroad opportunities continue to be scarce. The company is also characterized as downstream weighted, implying a second competitive disadvantage against western industry peers.

Currently trading at 9.1 times its trailing earnings, Sinopec carries a 14% discount to the industry average. Gurus have mostly divested away from this stock, with Renaissance Technologies and Sarah Ketterer (Trades, Portfolio) being the high rollers. However, their transactions are strictly short sighted as evidenced by their continuous and simultaneous purchases and sales. Hence, taking a position with long-term prospects is not recommendable given the current strict state control on profit.

Disclosure: Vanina Egea holds no position in any of the mentioned stocks.

About the author:Vanina EgeaA fundamental analyst at Lone Tree Analytics

Visit Vanina Egea's Website

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Ronalds Attack McDonald's, American Railcar Industries Slumps

The stock market edged lower on Thursday, as defensive sectors like telecom and utilities managed to outperform. This is the fourth time in five days that the Dow Jones Industrial Average (DJINDICES: ^DJI ) has fallen, though the market's off less than 0.5% during that time. Today, it lost just four points, or less than 0.1%, to end at 16,264.

McDonald's (NYSE: MCD ) couldn't help the Dow much on Thursday, adding just 0.3%. Not much changes from day-to-day with McDonald's, whose golden arches are one of the most recognizable brand symbols in the world. But for blue chip companies like Mickey D's to maintain their dominance, they've got to fend off competition, and embrace innovation and change in the industry. McDonald's isn't doing a great job at either of these. Yum! Brands' Taco Bell is now using real people named Ronald McDonald to endorse the taco haven's new breakfast menu. And McDonald's has been slow to embrace smartphone payment technology, as well, even as its rivals rush to develop apps for their consumers.

Finally, shares of American Railcar Industries, (NASDAQ: ARII ) , which makes, services, and leases railcars, shed 4.9% on Thursday. Of the 15 publicly traded railroad stocks in the U.S., 13 fell today, though American Railcar Industries' investors took the worst hit. The Surface Transportation Board held a two-day hearing this week on the issue of competitive switching, which the National Industrial Transportation League said would increase competition. Investors didn't see the merit in the proposal, which could hurt the $1.4 billion American Railcar Industries. McDonald's has issues defending itself at the top of the food chain, but J.C. Penney (NYSE: JCP ) would kill to have those dilemmas. "Mo' money, mo' problems" doesn't apply to the corporate world, where companies tend to run across mo' problems in the very effort to acquire mo' money. Even though J.C. Penney doesn't have much money -- it has "liquidity concerns" in Wall Street-speak -- the stock tacked on 2.3% today. The retailer is in much better shape than it was last year after raising cash, taking out a $2.25 billion loan, and closing locations, but my colleague Adam Levine-Weinberg thinks J.C. Penney may need to issue more shares to meet its cash goals in 2014.

Your credit card may soon be completely worthless
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Facebook Stock a Strong Buy Despite Oculus Concerns

Popular Posts: Comcast Stock a ‘Triple Play’ of Potential ValueWalt Disney Stock is Still Magic For Investors3 Chinese Stocks Set to Gain On China’s Economic Rebound Recent Posts: Facebook Stock a Strong Buy Despite Oculus Concerns 3 Chinese Stocks Set to Gain On China’s Economic Rebound Walt Disney Stock is Still Magic For Investors View All Posts

Welcome to the Stock of the Day.

Facebook185 Facebook Stock a Strong Buy Despite Oculus Concerns Shares of Facebook (FB) dipped after the social media giant announced plans to buy a virtual reality platform developer, Oculus VR, for $2 billion. This deal has clearly divided Wall Street: Some are warning that this is a frivolous deal in a frothy M&A market while others consider this a bold move to catch the wave of the future. Is the dip a sign of bad times to come or a buying opportunity for FB?

Let’s find out.

Company Overview

We’ve all heard of facebook.com–the social networking website with 1.23 billion monthly active users around the world. Facebook was founded in 2004 by former Harvard University student Mark Zuckerberg.

After the site experienced a meteoric rise in popularity over the next eight years, the company went public in February 2012. While the stock has had its ups and downs since then, it appears that the stock has found its footing.

With $7.87 billion in sales brought in last year, the company employs 6,337 worldwide.

Deal Book

On Tuesday Facebook announced plans to buy Oculus VR for $400 million in cash and $1.6 billion in stock. Oculus VR is the developer of a next generation virtual reality headset, which Facebook CEO Mark Zuckerberg saw as one of the “platforms of tomorrow.”The deal turned heads in Silicon Valley and on Wall Street for several reasons.

First, Oculus is a relatively new company, having began as a Kickstarter-funded project just a few years ago. Second, the technology doesn’t have direct tie-in to social media. The Oculus Rift system has been popular among the video gaming community but it isn’t clear how Facebook could integrate this technology into its current business. Third, the company doesn’t have any revenues to speak of yet; the Oculus Rift is still in the development phase.

So there’s a lot of uncertainty about how this $2 billion investment will pay out in the long-term. Even so, I consider Facebook stock a buy right now, and here’s why:

Future Outlook

Facebook is tentatively scheduled to report first-quarter results after the close on April 30. And I expect this to be a headline-making announcement: The analyst community is calling for 60.3% annual sales growth and 100% earnings growth. But Facebook’s bottom line could be even stronger: Over the past two months the consensus estimate has been hiked up 9% to 24 cents per share.

This suggests that analysts are struggling to pin down Facebook’s profit potential and that the social media company could post another double-digit earnings surprise (as it has for the past three quarters running).

Looking ahead to FY 2014, Facebook is expected to post 44.4% top-line and 43.2% bottom-line growth. That’s well above the average 33.2% earnings estimate for internet information providers.

Current Ratings

Before you buy any stock, you should always run it through my free Portfolio Grader ratings system. This Moderately Aggressive stock has made a complete turnaround since I added it to Portfolio Grader in May 2013–10 months ago this was a D-rated sell.

Since then the stock has improved in terms of both fundamental health and institutional buying pressure. Out of the eight financial metrics I graded FB on, it received As on four: Sales growth, operating margin growth, earnings growth and analyst earnings revisions.

FB also earned Bs on earnings surprises and return on equity. The only two fundamental areas Facebook needs to improve are earnings momentum (F) and cash flow (C).

Meanwhile, buying pressure is very strong, as shown by the stock’s A-rated Quantitative Grade.

Bottom Line: As of this posting I consider Facebook stock an A-rated Strong Buy.

Best retirement advice for many: Never retire

By now, we all know how difficult retirement is -- especially the planning part. But there is a group of people who believe they have a solution: Never retire.

These folks, both the Boomers and the Greatest Generation, say they will never retire because they would be bored to death and their brains would just shrivel up. (Maybe they didn't use those words, but you get the point.)

Take comedian Marty Allen. Boomers may remember him from the old Ed Sullivan Show on CBS or the old Match Game on NBC. In fact, Allen was on that fateful show in 1964 when Sullivan introduced the Beatles to America.

RETIREMENT: Planning for your future

Well, Allen is 92 and he's still performing stand-up comedy in Vegas with his wife of 30 years, Karon Blackwell. His advice for people getting ready to retire: Don't.

"I don't see retiring." he said. "What do you do? Why would you retire as long as you can walk or talk? I just don't see retiring. I think it slows you down in life. As long as you are able to do things, keep doing them. Like I'm doing. I'm writing a book about my life, I collect art. I do comedy, I'm a reader. I do different things. It helps mentally and physically. It adds to your life.

"I actually love people, and in my heart I love entertaining," says Allen. "Where else would you go?"

Then there's Arthur E. Imperatore Sr., founder and CEO of New York Waterway. He is up every morning at 5 a.m. He's usually at his desk in 10. He has three children, nine grandchildren and a 70-year-old stepson who is chairman of the board of the New York City ferry company.

Oh, and Imperatore is 88 years old and refuses to retire,

"I tried some versions of partial retirement and I decided I'd better go to work and make a living and keep my nose to the grindstone," he said. It keeps me younger and keeps by brain from atrophy."

"I really believe that retirement is debilitating, if not physically, certainly emotionally," says Imperatore. "I've had plenty of problems trying t! o get here in the morning. I feel old and decrepit, and I hit the doorway to the terminal, and I get fired up."

DELAYING RETIREMENT: Many need more money, enjoy their jobs

Marc Freedman, CEO and founder of Encore.org, a website dedicated to helping those near retirement age embark on "second acts" or encore careers at non-profit organizations, says many people today embark on multiple careers.

"Increasingly, we'll see people take breaks throughout the life course and have multiple working chapters, including ones that begin in the 70s and beyond," says Freedman. "It doesn't make sense to work like a maniac for 30 years and be put out to pasture for a period that could be that long in duration."

"People want to continue contributing," he says. "I think we ware tying to change the culture to support longer contributing lives and better pathways for people to keep contributing.

Stewart Wade, a real estate agent in Oahu, Hawaii, only shows up for work once a week these days, but his bosses understand. He's 99 years old and works for Coldwell Banker Pacific Properties in Oahu, Hawaii, where he takes a swim in the ocean at least two or three times a week. And he still sells homes.

"I try to do it three times a week," he says. "I swim from 15 to 30 minutes in the ocean. It's so much better to swim there than in pools."

They aren't Baby Boomers. They are part of the Greatest Generation. But what they share with a growing number of Boomers is that they utterly refuse to stop working.

Sarah Rix, senior strategic policy adviser with the economics team of the AARP Public Policy Institute, says the number of people who continue to work in their retirement years is growing, and that's good for them physically , mentally, and financially. And it's good for the economy. She says in the percentage of people in the 65 to 69-year-old age group who are still in the work force has increased from 18.4% in 1985 to 32.2% last year. The number of people 70 to 75 in the work forc! e is also! increasing.

"People are pushing back the date of retirement, for a lot of reasons, including financial," she says. "People are living longer. While not everybody living longer is living healthy longer, many are. They want to remain active, and still feel young. They have contributions to make."

"You can't afford to work for 30 years and then support yourself for that long in a life of leisure," says Freedman.

Rix says when older workers are asked why they continue working, they give social and psychological reasons as often as financial. "For those who can, and who want to, it can be a really positive experience," she says.

You won't find any disagreement from Imperatore.

"My health is better and so is my psyche," he says. "My spirit is high. I think I have more diplomacy and more wisdom than I've ever had. Time brings that. I do a fair amount of reading and a fair amount of thinking. I'm very pragmatic. "

Harold Kaplan is now in his third career -- fourth if you count the time he spent in the service. "I was retired for six weeks, but I wasn't any good at it," says the 75-year-old Connecticut physician.

The Yale Medical School graduate first went into the Air Force where as a research internist working on the Apollo space program. After he left the service he went into gastroenterology -- for 38 years. He retired in 2007 -- or tried to. As he ratcheted down his practice, he ratcheted up his duties at a hospital as chief medical officer. He became vice president for medical affairs at Midstate Medical Center in Meriden, Conn.

"I retired from my administrative post at hospital Feb. 1 of 2013," he says. "I stayed retired until March 15, when I was hired as associate professor at the medical school."

His wife of 52 years is 76 and continues to work as an adjunct admissions officer for Yale College.

And what about retirement?

"I don't see the point," says Kaplan. "The purpose of retirement is to stop doing what you have to do to s! tart doin! g what you want to do. I'm already doing that. I'm just having a good time."

Comedian Shelly Berman, 88, is retired, but only from the stage. He spent his so-called retirement writing a book of poetry, To Laughter With Questions. He says he will write another book as soon as he can find the time. He and his wife of 66 years, Sarah, are busy. Among other things they volunteer at the Motion Picture and Television Fund.

He's another one who does not recommend retiring to a life of leisure. His advice to others: "I can't advise others. I think I'd be somewhere out of my realm. But I can only advise my wife, and she tells me to go to hell."

Still, he added: "We're doing everything to be busy volunteers," he says. "The truth is that it's (retiring) wasting the rest of your time. Don't do that. What you gotta do is keep your muscles going. I wouldn't suggest that you quit. What are you going to do, sit? I'm not good at that. I have an itchy bottom."

In1964, Allen & Rossi appeared on the Ed Sullivan Show with the Beatles, during their first performance in the United States.(Photo: Handout)

The Rent Is, in Fact, Too Damn High

Note: Updated with more comments.

NEW YORK (TheStreet) -- "The rent is too damn high!" is the battle cry (and name of the political party) of Jimmy McMillan, the kooky New York activist and sometime mayoral candidate. By contrast, Tuesday's release of the March data for the Case-Shiller Housing Index suggest that housing sale prices are flat, down 0.08% for the month. So is housing steady or out of control?

According to a new report from the National Low Income Housing Coalition, it turns out that McMillan is right about rent. Across the country, it's painfully expensive.

On Monday, the affordable-housing nonprofit NLIHC released a study about how much money it takes to rent a market-rate apartment in the U.S. The results were dismal. The average American renter earns $14.64 an hour, according to the study. But on average it takes $18.92 an hour for a worker to pay for a two-bedroom house or apartment rental. That's a 52% increase since 2000. The average worker fares poorly in light of this study. But the minimum-wage worker is worse off by far. Minimum wage is $7.25, although Congressional Democrats are seeking to raise that to $10.10. The NLIHC found that by pooling their resources, two minimum-wage workers still wouldn't be able to afford a two-bedroom rental on their own. Even with the proposed minimum-wage increase, a single worker couldn't afford a one-bedroom alone, except in Arkansas, Kentucky or Puerto Rico. More than 40 million Americans rent, or about 35% of American households. 25% of renters have extremely low income. According to Sheila Crowley, the president of the NLIHC, "Three out of four extremely low income households have to spend more than half of their income on housing costs." So why does the Case-Shiller Housing Index show a slight drop in prices? That seems to suggest that inflation is under control and that prices are stable. And yet rents are up. It's less mysterious than it seems, said Claudia Coulton, Distinguished University Professor at Case Western Reserve University and co-director of the Center on Urban Poverty and Community Development there. Coulton said, "The single family home market, which is what Case-Shiller indexes, is still soft following the foreclosure crisis and tight credit situation. There are too many homes on the market in many regions along with too few qualified buyers." So the home sales market is languishing. If people can't afford to buy, what then? "Many of those individuals, who may have been home owners or first time buyers before in past years, are now flooding the rental market, making supplies tight," Coulton said. "Rental property owners are taking advantage of the situation to get increased rents. For low income households, this problem is unlikely to change much in the short run unless there is an increase in housing subsidy or low income rental housing programs." There is a disconnect between home ownership and renting in terms of affordability. Renters can't afford to buy, and the glut of renters has driven prices up drastically. Yet employment and wages have stagnated. Follow @NoTicker

China's Version of "Too Big to Fail"

MoneyShow's Jim Jubak thinks some small Chinese company defaults are inevitable, while defaults by bigger companies are not, and will be stopped by the Chinese government.

It turns out that China has its own version of "Too Big to Fail." In early March, there has been a lot of turmoil in the market and risk in the market because China had its first ever corporate bond default. They have another few companies that are talking about defaulting in different ways on bank loans, etc., and raised the sense that there is a whole lot of risk.

What is interesting is that the biggest risks in the Chinese financial system are financing companies that are affiliated with the Hu governments. The Hu governments are not allowed to borrow themselves, so they have gotten around that regulation by setting up financing arms that then finance things like shopping centers or factories. The amount of debt here is up to about $2.9 trillion, about 40% of that has to be rolled over this year, and the sense was that these entities were in deep, deep trouble. What has been interesting is that even though you have had this worry about the first ever bond default, the yield that investors have been demanding to invest in these financial entities has fallen. It is down about 70 basis points since the end of January. Investors are saying, seemingl,y to just look at that rate. They are saying these things are less-risky than before when we were not really worried about defaults. What it really seems to imply is that investors are looking at the Chinese government and saying, "Well some default is inevitable," which is what the Chinese Premier said a few weeks ago. I have decided that, yes, what he really means is that some defaults, by relatively small privately owned companies are inevitable, but that defaults by things like financing entities affiliated with the Hu governments or big state owned enterprises are not inevitable. In fact, the government is not going to let those happen. That is the consensus at the moment. That is what is driving prices in the debt market for things like bonds that are being sold by these low government entities.

Now looking at the spread between those bonds, and those issued by Beijing itself, has contracted, so there is clearly a sense that there is less risk in this than we thought, as the market consensus says, at the moment. Whether the market consensus is right or not, time will tell. I doubt that we are going to get through this without some more turmoil down the road, but at the moment, at least, China's financial markets have decided that, yes, there is a problem, but it is not where we thought the problem was and, in fact, it is actually smaller than we thought it was, and "hey, we are going to work through this and it is not going to be a big deal." I think when we get to complacency about this, that is when we then really do need to start to worry about it again.

This is Jim Jubak for the MoneyShow.com Video Network.

Top Chemical Companies To Own In Right Now

Dubai�� benchmark stock index fell, extending the declines of the past two weeks, on concern this year�� rally may be overdone. Shares in Qatar rose.

The DFM General Index (DFMGI) lost 0.3 percent at 2,816.6 at 12:24 p.m. in the emirate, paring the gain for the year to 74 percent. Gulf Navigation Holding PJSC (GULFNAV), the shipping company that transports oil and chemicals, was poised for its lowest close in two months. Aramex PJSC (ARMX), the United Arab Emirates��biggest courier company, slid the most in two weeks, while Shuaa Capital PSC (SHUAA) retreated 3.8 percent. Qatar�� benchmark QE Index climbed 0.8 percent and Israel�� TA-25 Index (TA-25) advanced 0.6 percent.

Dubai�� benchmark index is among the five best-performing gauges tracked by Bloomberg globally this year as the emirate�� real-estate industry rebounds from a more than 60 percent decline in home prices. A decision on Dubai�� bid to host the World Expo in 2020 will be announced Nov. 27, with investors expecting a win to boost economic activity. Dubai�� measure trades at an estimated price-to-earnings multiple of 14.5 compared with 11.7 for the MSCI Emerging Markets index.

Top Chemical Companies To Own In Right Now: NewMarket Corp (NEU)

NewMarket Corporation (NewMarket), incorporated in 2004, is a holding company, which is the parent company of Afton Chemical Corporation (Afton), Ethyl Corporation (Ethyl), NewMarket Services Corporation (NewMarket Services), and NewMarket Development Corporation (NewMarket Development). Each of the Company�� subsidiaries manages its own assets and liabilities. Afton encompasses the petroleum additives business, while Ethyl represents the sale and distribution of tetraethyl lead (TEL) in North America and certain petroleum additives manufacturing operations. NewMarket Development manages the property, which it owns in Richmond, Virginia. NewMarket Services provides administrative services to NewMarket, Afton, Ethyl, and NewMarket Development. NewMarket Services departmental expenses and other expenses are billed to NewMarket and each subsidiary pursuant to services agreements between the companies.

As a specialty chemicals company, Afton develops, manufactures, and blends formulated fuel and lubricant additive packages, and markets and sells these products globally. Afton is a lubricant and fuel additives companies globally. Lubricant and fuel additives are products for maintenance and reliable operation of all vehicles and machinery. Ethyl provides contract manufacturing services to Afton and to third parties and is one of the marketers of TEL in North America. NewMarket Development manages the property, which it owns on a site in Richmond, Virginia consisting of approximately 64 acres.

Petroleum Additives

Petroleum additives are used in lubricating oils and fuels to enhance their performance in machinery, vehicles, and other equipment. It manufactures chemical components, which are selected to perform specific functions and combine those chemicals with other components to form additive packages for use in specified end-user applications. The petroleum additives market is an international marketplace, with customers ranging from oil companies and refineries t! o original equipment manufacturers (OEMs) and other specialty chemical companies. Lubricant additives are ingredients for lubricating oils. Lubricant additives are used in a range of vehicle and industrial applications, including engine oils, transmission fluids, gear oils, hydraulic oils, turbine oils, and in other application where metal-to-metal moving parts are utilized. Lubricant additives are organic and synthetic chemical components, which enhance wear protection, prevent deposits, and protect against the hostile operating environment of an engine, transmission, axle, hydraulic pump, or industrial machine.

Lubricants are used in every piece of operating machinery from heavy industrial equipment to vehicles. Lubricants provide a layer of protection between moving mechanical parts. Lubricants serve the functions, such as friction reduction, heat removal and containment of contaminants.

The Company offers a range of lubricant additive products, each of which is composed of component chemicals specially selected to perform desired functions. It manufactures the chemical components and blends these components to create formulated additives packages. Purchasers of lubricant additives tend to be oil companies, distributors, refineries, and compounders/blenders. The engine oils market�� primary customers include consumers, service dealers, and OEMs. Afton offers products, which enhances the performance of mineral, part-synthetic, and fully-synthetic engine oils.

The driveline additives submarket is consisted of additives designed for products, such as transmission fluids, gear oils, and off-road fluids. Transmission fluids serve as the power transmission and heat transfer medium in the area of the transmission. Gear oil additives lubricate gears, bearings, clutches, and bands in the gear-box and are used in vehicles, off-highway, hydraulic, and marine equipment. Other products in this area include hydraulic transmission fluids, universal tractor fluids, power ste! ering flu! ids, shock absorber fluids, gear oils and lubricants for machinery. These additives are sold to oil companies and often sold to vehicle OEMs for new vehicles. End-products are also sold to service dealers for aftermarket servicing (service-fill), as well as retailers and distributors.

The industrial additives submarket is consisted of additives designed for products for industrial applications, such as hydraulic fluids, grease, industrial gear fluids, industrial specialty applications, and metalworking additives. This submarket also shares in the 30% of the market not covered by engine oils. These products must conform to industry specifications, OEM requirements and/or application and operating environment demands. Industrial additives are sold to oil companies, service dealers for after-market servicing, and distributors.

The types of fuel additives the Company offers include gasoline performance additives, which clean and maintain fuel delivery systems, including fuel injectors and intake valves, in gasoline engine; diesel fuel performance additives, which perform similar cleaning functions in diesel engines; cetane improvers, which increase the cetane number in diesel fuel by reducing the delay between injection and ignition; stabilizers, which reduce or eliminate oxidation in fuel; corrosion inhibitors, which minimize the corrosive effects of combustion by-products and prevent rust; lubricity additives, which restore lubricating properties lost in the refining process; cold flow improvers, which improve the pumping and flow of diesel in cold temperatures, and octane enhancers. It offers a range of fuel additives globally and sells its products to fuel marketers and refiners, as well as independent terminals and other fuel blenders.

Real Estate Development

The real estate development segment represents the operations of Foundry Park I, LLC (Foundry Park I). The Company is exploring various development opportunities for other portions of the proper! ty it own! s, as the demand warrants.

All Other

The All other category includes the continuing operations of the TEL business (primarily sales of TEL in North America), as well as contract manufacturing performed by Ethyl. Ethyl manufacturing facilities include its Houston, Texas and Sarnia, Ontario, Canada plants. The Houston plant is engaged in petroleum additives manufacturing and produces both lubricant additives and fuel additives. The Sarnia plant is engaged in petroleum additives manufacturing and produces fuel additives. The All other category financial results include a service fee charged by Ethyl for its production services to Afton. Its remaining manufacturing facilities are part of Afton and produce both lubricant additives and fuel additives.

The Company competes with Berkshire Hathaway Inc., ExxonMobil Chemical, Royal Dutch Shell plc, Chevron Oronite Company LLC, BASF AG, Chevron Oronite Company LLC, The Lubrizol Corporation, Innospec, Inc., Eurenco and EPC - U.K.

Advisors' Opinion:

[By John Udovich]
The biotech sector has been pretty exciting this year�with small cap biotech stocks Prana Biotechnology Limited (NASDAQ: PRAN) and TNI BioTech (OTCMKTS: TNIB) having recently produced noteworthy news for investors�while Acceleron Pharma, Inc (NASDAQ: XLRN), Ophthotech (NASDAQ: OPHT) and BIND Therapeutics (NASDAQ: BIND) have just�set term sheets for their upcoming IPOs. Just consider all of the following recent news:
Surge in Biotech IPOs. Unquote.com has noted�a surge in biotech IPOs this year as there have been�almost 30 biotech IPOs since January - marking a 13-year high and sparking some concerns about a bubble. More specifically and according to the National Venture Capital Association (NVCA), there was just one venture capital-backed biotech IPO in the US in the first quarter of this year, but this was followed by a massive increase of 20 in�the second quarter and a�further six since July. There has also been a small uptick in�venture capital-backed European biotech companies going public (four) with�a listing on the Nasdaq appearing to be the most popular or rather the safest option. � New IPO Term Sheets. This month, a couple of small cap biotech companies announced their terms for upcoming IPOs, including 1)�Acceleron Pharma, Inc, a clinical stage biotech developing protein therapeutics for cancer and rare diseases, plans to raise $65 million by offering 4.7 million shares at a price range of $13 to $15; 2) Ophthotech, a clinical-stage biotech developing therapeutics for eye diseases, plans to raise $100 million by offering 5.7 million shares at a price range of $16 to $19; and 3) BIND Therapeutics, a clinical-stage biotech developing a platform of targeted and programmable therapeutics, plans to raise $71 million by offering 4.7 million shares at a price range of $14 to $16. Biotechs Invest More on R&D. The 2013 BDO Biotech Briefing examined the most recent 10-K SEC filings of publicly traded companies listed on the Nasdaq Biotechnolog

Top Chemical Companies To Own In Right Now: Basf SE (BASFY.PK)

BASF SE is a chemical company. The Company operates in six segments: Chemicals, Plastics, Performance Products, Functional Solutions, Agricultural Solutions and Oil & Gas. Chemicals segment offers products in the chemical, electronic, construction, textile, automotive, pharmaceutical and agricultural industries. Plastics segment offers a range of products, system solutions and services. Performance Products help its customers to improve their products and processes. Functional Solutions segment bundles system solutions and products for customers and industries. The Company�� Agricultural Solutions segment includes crop protection products, which guard against fungal diseases, insects and weeds. Its Oil & gas segment is a producer of oil and gas. On April 9, 2009, the Company acquired Ciba Holding AG. In April 2010, Intertek Group plc acquired the Regulatory and Safety Testing businesses of Ciba Expert Services (Ciba ES) from the Company. In December 2010, the Company completed its acquisition of Cognis Holding GmbH from Cognis Holding Luxembourg S.a r.l.

Chemicals

The Company�� Chemicals segment portfolio ranges from basic chemicals, glues and electronic chemicals for the semiconductor and flat panel display industry, to solvents and plasticizers, as well as starting materials for detergents, plastics, textile fibers, paints, coatings and pharmaceuticals. This segment is organized into three divisions: Inorganics, Petrochemicals and Intermediates. The important basic products of the Inorganics division are ammonia, methanol, sodium hydroxide, chlorine, as well as sulfuric and nitric acid. The Petrochemicals division produces products, such as ethylene, propylene, butadiene and benzene, which are produced in steam crackers from naphtha or natural gas. In further processing stages, it produces alcohols, solvents and plasticizers for the chemicals and plastics industries. BASF SE�� Intermediates division develops, produces and markets a range of intermediates of all produc! ers worldwide. The product lines include amines, diols, polyalcohols, acids and specialties. They serve as starting materials for products, such as coatings, plastics, pharmaceuticals, textile fibers, crop protection products, as well as detergents and cleaners.

Plastics

BASF�� Plastics segment is organized into two divisions: Performance Polymers and Polyurethanes. The Performance Polymers division is a supplier of engineering plastics, polyamides and polyamide intermediates, foams and specialty plastics. The Company offers its customers a portfolio of engineering plastics based on polyamide 6 and polyamide 6,6. This is complemented by products Ultradur, Ultraform and Ultrason. For the packaging, textile and food industries, it offers Ultramid, a base product for the manufacturing of fibers and foils. BASF SE�� product range also includes Ecoflex and Ecovio, biodegradable specialty plastics for the packaging industry. Styropor and its refinement Neopor are styrene-based precursors for foams used in insulating material for construction and packaging. The Polyurethanes division is a supplier of basic products, systems and specialties. The Company offers polyurethane products for numerous customer applications. Under brand names, such as Elastoflex and Elastopor, polyurethanes are used, as rigid or flexible foams in construction for furniture and household appliances.

Performance Products

The Performance Products segment consists of the Acrylics & Dispersions, Care Chemicals and Performance Chemicals divisions. Acrylics & Dispersions produces acrylic acid, as well as its derivatives superabsorbents and polymer dispersions. Superabsorbents are used particularly in diapers. Polymer dispersions are used in the production of glues, coatings, nonwoven materials and construction chemicals. The Company�� product portfolio for the paper industry consists of binders, process chemicals and kaolin pigments. Its Care Chemicals portfolio consists of products f! or cleani! ng, care, cosmetics and hygiene. Performance Chemicals pools specialties for various customer industries. The product portfolio consists of antioxidants, pigments, light stabilizers and specialty additives. The division also makes chemicals for the production and finishing of leather and textiles.

Functional Solutions

The Functional Solutions segment consists of the Catalysts, Construction Chemicals and Coatings divisions. The Catalysts division develops catalysts and adsorbents. It produces catalysts that transform pollutants in the exhaust flows of vehicles into harmless chemical and plastics. The Construction Chemicals division is engaged in development of concrete admixtures, such as concrete plasticizers, deferrers and curing agents. It also produces and markets construction systems. The Coatings division is a provider of coatings solutions for automotive and industrial applications. Its brands Glasurit and R-M are for the car refinish business.

Agricultural Solutions

The Agricultural Solutions segment consists of the Crop Protection division. The Company develops and produces active ingredients and formulations for the improvement of crop health and yields, and markets them worldwide. Its portfolio includes fungicides, insecticides, herbicides and seed treatments. Its product Headline contains the active ingredient F500, which is not only used for corn and soybean, but also for numerous other crops.

Oil & Gas

BASF�� oil and gas activities are bundled in the Wintershall Group. Wintershall and its subsidiaries operate in the business sectors exploration and production, and natural gas trading. In the exploration and production of oil and natural gas, the Company focuses on oil and gas regions in Europe, North Africa and South America, as well as Russia and the Caspian Sea region. The Mittelplate oil field in the North Sea tidal flats is the cornerstone of the Company�� oil production in Germany. Wintershall and RWE-D! EA each h! old a 50% interest in this field. During the year ended December 31, 2009, it acquired 25% interest in Cuxhaven concession. It operates 26 offshore platforms in Mittelplate region, of which 19 are actually controlled. In Libya, Wintershall operates eight onshore oil fields in the concessions 96 and 97 and exploits the associated gas released during crude oil production in a gas utilization plant for the local demand. In Mauritania, it operates two onshore exploration blocks. In 2008, Wintershall acquired stakes of 50% each in two exploration areas in the Canadon Asfalto Basin. It supplies Germany and several other European countries. The gas pipeline network operated by WINGAS TRANSPORT connects the markets in Western Europe with a natural gas infrastructure that runs through Eastern Europe and the Russian Federation all the way to the gas fields in Siberia. Other components portfolio include natural gas storage facility in Western Europe, in Rehdn, Germany, and the natural gas storage facility in Haidach, Austria.

Advisors' Opinion:

[By Markus Aarnio]
BioAmber expects its advanced bio-based specialty chemicals to compete with petrochemical equivalents that are proven in the market and manufactured by established companies, such as Gadiv Petrochemical Industries, Kawasaki Kasei, DSM (RDSMY.PK) and numerous small Chinese producers including Anqing Hexing Chemical, and Anhui Sunsing Chemicals. In addition, BioAmber's products will compete against other companies in the bio-based specialty chemical industry, both early stage companies, such as Genomatica (for bio-based 1,4 BDO) and Myriant Corporation (for bio-succinic acid), and established companies, such as a collaborative venture between DSM and Roquette Frères S.A. and a collaborative venture between BASF (BASFY.PK) and Purac (both for bio-succinic acid).

Top 5 Forestry Stocks To Invest In 2014: Zoltek Companies Inc (ZOLT)

Zoltek Companies, Inc. is a holding company, which operates through wholly owned subsidiaries, Zoltek Corporation, Zoltek Zrt., Zoltek de Mexico SA de CV, Zoltek de Occidente SA de CV, Engineering Technology Corporation (Entec Composite Machines), Zoltek Properties, Inc., and Zoltek Automotive, LLC. Zoltek Corporation (Zoltek) develops, manufactures and markets carbon fibers and technical fibers in the United States. The Company is an applied technology and advanced materials company. It commercialization of carbon fiber through composites used in a range of commercial products, which it sells under the Panex trade name. In addition to manufacturing carbon fiber, it produces an intermediate product, a stabilized and oxidized acrylic fiber used in flame- and heat-resistant applications, which it sells under the Pyron trade name. During fiscal year ended September 30, 2011 (fiscal 2011), its net sales to Vestas Wind Systems, a wind turbine manufacturer represented % of its net sales. In October 2011, Zoltek purchased a building in St. Peters, Missouri to house its prepreg operations.

Zoltek Zrt. is a Hungarian subsidiary that manufactures and markets carbon fibers and technical fibers and manufactures acrylic fiber precursor raw material used in production of carbon fibers and technical fibers. Zoltek de Mexico SA de CV and Zoltek de Occidente SA de CV are Mexican subsidiaries that manufacture carbon fiber and precursor raw material. Entec Composite Machines manufactures and markets filament winding and pultrusion equipment used in the production composite parts. The Company�� sales markets are in Europe and the United States. The Company has manufacturing plants in Nyergesujfalu, Hungary, Guadalajara, Mexico, Abilene, Texas and St. Charles, Missouri. Its Texas plant houses carbon fiber manufacturing lines and value-added processing capabilities. Its Missouri plant is engaged in the production of technical fibers for aircraft brake and other friction applications and also produces limited! amounts of carbon fibers. In addition, it has facilities in Salt Lake City, Utah where it designs and builds composite manufacturing equipment and produce resin pre-impregnated carbon fibers, called prepregs. It performs certain downstream processing, such as weaving, knitting, blending with other fibers, chopping and milling and preparation of pre-form, pre-cut stacks of fabric. In addition, its Salt Lake City-based Entec Composite Machines subsidiary designs and builds composite manufacturing equipment and markets the equipment along with manufacturing technology and materials. It also provides composite design and engineering for development of applications for carbon fiber reinforced composites.

The Company competes with Hexcel Corporation, Cytec Industries, Toray Group, Toho Tenax, Mitsubishi Chemical and SGL Carbon.

Advisors' Opinion:

[By Maxx Chatsko]
3. Zoltek (NASDAQ: ZOLT )
Zoltek was an interesting investment at the beginning of the year for futurist investors. The company is one of the largest manufacturers of carbon fiber in the world. In fact, its lightweight and high-strength carbon fiber is used almost exclusively in the largest wind turbine blades around the world and played a major role in America's 20-fold improvement in breezy energy capacity since 2000. This material of the future has many other uses and potential uses as well, but Zoltek has never really gained the confidence of the market in any big way: Its market cap was hovering near $300 million at the start of the year.
[By Lauren Pollock]
Toray Industries Inc.(3402.TO), the global market leader in carbon fiber, agreed to buy smaller rival Zoltek Cos.(ZOLT) in a deal valued at $584 million. The Japanese synthetic-fiber maker offered $16.75 a share, a 9.5% discount to Thurday’s close. Zoltek has struggled amid what it has called a cyclical downturn in the wind energy market. Zoltek shares dropped 10% to $16.58 in light premarket trading.
[By Maxx Chatsko]
Shares of world-leading carbon fiber manufacturer�Zoltek� (NASDAQ: ZOLT ) �have been pushed to new highs after a frantic attempt by Quinpario Partners to acquire a large position in the company. Despite being turned away by management, the fund does make valid points about the company's general lack of progress given its global scope and potential. Investors in this business built around a game-changing material may be worrying whether shares are about to fall back to earth. In the following video, Fool.com contributor Maxx Chatsko gives at least one reason for investors to think that shares can hold their current levels -- or even trek higher.

Top Chemical Companies To Own In Right Now: American Soil Technologies Inc (SOYL)

American Soil Technologies, Inc., incorporated on January 09, 1997, develop, manufacture on an outsourced basis and market advanced products that decrease the need for water and improves the soil in the Green Industry consisting of agriculture, turf and horticulture. The Company manufactures three products: Agriblend, a soil amendment developed for agriculture; Soil Medic, a slow release liquid fertilizer, and NutrimoistL, developed for homes, parks, golf courses and other turf related applications. The Company markets its products primarily in the United States.

The Company owns a wholly owned subsidiary, Smart World Organics, Inc. (Smart World). Smart World provides organic and sustainable fertilizers to commercial and residential customers worldwide. Smart World also provides custom-formulated products built to suit unusual growing conditions and environments. The product line includes homogenized fertilizers, non-toxic insect controls, plant protectants, seed, soil and silage inoculants.

Advisors' Opinion:

[By Peter Graham]
What�� the Catch With SOHM Inc? According to various disclosures, transactions of $1.5k and $15k have or will occur to mention SOHM Inc in various investment newsletters. Last Thursday, SOHM Inc announced it had launched a unique protein supplement I-Prolec��in India. The press release says this supplement will help people who have protein deficiency as well as athlete and sports persons who have need of extra proteins. Otherwise and back in June, SOHM Inc announced the financial results for the fiscal first quarter where revenue came in at $1,005,410 verses revenue of $375,741 for the same quarter of 2012. Not mentioned in the press release was a net loss of $236k along with net losses of $259k, $213k and $267k for the past four reported quarters. At the end of March, SOHM Inc had $138k in cash to cover $1,697k in current liabilities and $2,956k in long-term debt. Those full financials are not exactly great, but they are also not exactly terrible if the income statement�� top line continues to grow and the company turns a profit.
American Soil Technologies, Inc. (OTCMKTS: SOYL) Has Been Very Quiet
Small cap American Soil Technologies engages in developing, marketing and selling polymer and other soil amendments to the agricultural turf and horticulture industries primarily in the United States. The company�� principal products include Agriblend, a soil amendment for agriculture; Soil Medic, a slow release liquid fertilizer for homes, parks, golf courses, and other turf related applications; and The Agro Tower for vertical farming. American Soil Technologies also provides homogenized fertilizers, non-toxic insect controls, plant protectants, seeds and soil and silage inoculants to commercial and residential customers worldwide. On Friday, American Soil Technologies fell 9.52% to $0.0770 for a market cap of $5.24 million plus SOYL is up 1,141.9% over the past year and up 28.3% over the past five years according to Googl

Top Chemical Companies To Own In Right Now: Uralkaliy OAO (URALL.PK)

Uralkaliy OAO (Uralkali OJSC) is a Russia-based company, which is engaged in the chemical industry. The Company specializes in the production of potash fertilizers. Its product portfolio comprises pink muriate of potash (PMOP), white muriate of potash (WMOP) and granular (GMOP). The Company is active through representative offices, located in Moscow and Beijing, as well as numerous subsidiaries, located countrywide and in Panama, Belarus, Singapore, Brazil and others. Uralkaliy OAO operates on the potassium and magnesium deposits located in Berezniki, Perm and Saint Petersburg. Its production assets include seven plants and five mines. Uralkaliy OAO sells its products domestically, as well as abroad in over 40 countries, including the United States, China, Brazil, India and South-East Asia, among others. Advisors' Opinion:

[By Tim Gallagher]
The potash spat continues to get uglier, as Belarus investigators reportedly intend to seize property and assets of Russia's Uralkali (URALL.PK) following the collapse of the joint Russian-Belarussian potash venture.
[By Chris Damas]
This morning Russian potash giant OJSC Uralkali (URALL.PK) presented first half 2013 financial and operating results and more importantly, much anticipated comments on the strategy of the company and the state of the international potash industry, the latter blind-sided by the leading potash company's split with marketing partner JSC Belaruskali of Belarus.

Top Chemical Companies To Own In Right Now: K&S AG (KPLUY)

K&S AG is a Germany-based holding company which is active in the chemical sector. The Company divides its activities into four main business segments. The Potash and Magnesium Products segment is engaged in the crude potash and magnesium salts extraction and in processing raw materials into products for industrial, pharmaceutical, cosmetics and food industries. The Nitrogen Fertilizers business segment distributes fertilizers for almost all agricultural crops, and products for home and garden, plant care and plant protection, specialty fertilizers for public green areas, tree nurseries, horticulture and various special crops are offered. The Salt segment offers food grade salt, industrial salt and salt for chemical use, as well as de-icing salt applied to ensure road safety. The Complementary Business segments include recycling activities and the disposal and reutilization of waste salt mines, granulation of CATASAN, logistics, and trading in different basic chemicals. Advisors' Opinion:

[By Rich Duprey]
Yet, Europe's leading potash player K+S (NASDAQOTH: KPLUY ) just said that, because of the upheaval that's occurred in the market, it was slashing its dividend by 82% for 2013,�reducing the payout ratio to just 11% of adjusted after tax�earnings, a far cry from the miner's usual�ratio of between 40% and 50%. Could this signal a new era of austerity that will ultimately see Potash,�Agrium (NYSE: AGU ) , and Mosaic (NYSE: MOS ) �end up whacking their payouts, as well?

Top Chemical Companies To Own In Right Now: Arkema SA (AKE)

Arkema SA is a France-based company which specializes in the manufacture and marketing of chemical products. The Company operates through its two business segments: Industrial Chemicals and Performance Products. The Industrial Chemicals division offers the production of acrylics, polymethyl methacrylate (PMMA), hydrogen peroxide, fluorochemicals and thiochemicals, and includes such brands as Forane, Albone, Norsocryl, Altuglas and Sarbio. The Performance Products include the production of technical polymers, specialty chemicals and functional additives. The Company's products are used in the construction, automotive and transportation, health, electrical and electronics, agricultural and packaging industries, among others. In April 2013, it acquired a majority stake in AEC Polymers. In October 2013, it inaugurated the new Sumitomo Seika superabsorbent plant on the Carling site, which makes the overall superabsorbent production capacity of the Carling facility up to 47,000 ton/year. Advisors' Opinion:

[By Inyoung Hwang]
Arkema SA (AKE) added 4.7 percent to 83.93 euros. UBS AG raised its rating on the French chemicals maker to a buy from neutral, saying the stock is undervalued. The firm also boosted its price target to 100 euros from 80 euros.

Top Chemical Companies To Own In Right Now: AZ Electronic Materials SA (AZEM)

AZ Electronic Materials SA is a producer and supplier of specialty chemical materials. AZ operates in four segments: IC Materials, which includes products for use in integrated circuits and devices; Optronics, which includes products used in the production of flat panel displays for use in televisions, computer monitors and similar equipment and light emitting diode technology; Printing and Other, which includes printing and similar products used in photo lithographic processes, and Corporate. The Company�� products enable the manufacture of integrated circuits (ICs) and flat panel displays (FPDs) that are integral to a range of electronic devices and applications, including computers and tablet devices, flat screen televisions, mobile communication devices, industrial and automotive applications and the developing light and energy markets. Advisors' Opinion:

[By Corinne Gretler]
AZ Electronic (AZEM) surged 43 percent, the most since its at least November 2010, after Merck on Dec. 5 said it had agreed to buy the company for about 1.6 billion pounds. Merck added 0.4 percent. Shareholders will get 403.5 pence for each share, Merck said. The price is 53 percent above the Dec. 4 closing level in London trading.

Top Chemical Companies To Own In Right Now: Huntsman Corporation(HUN)

Huntsman Corporation engages in the manufacture and sale of differentiated organic and inorganic chemical products worldwide. The company offers polyurethane chemicals, including methyl diphenyl diisocyanate, propylene oxide, polyols, propylene glycol, thermoplastic polyurethane, aniline, and methyl tertiary-butyl ether products, which are used to produce rigid and flexible foams, as well as coatings, adhesives, sealants, and elastomers; and performance products, such as amines, carbonates, surfactants, linear alkyl benzene, maleic anhydride, performance chemicals, ethylene glycol, olefins, and technology licenses. It also provides advanced materials comprising epoxy resin compounds and formulations; cross-linking, matting agents, and curing agents; and epoxy, acrylic and polyurethane-based adhesives, and tooling resin formulations. In addition, Huntsman Corporation offers textile chemicals, dyes, and titanium dioxide. The company?s products are used in various applicatio ns, including adhesives, aerospace, automotive, construction products, durable and non-durable consumer products, electronics, medical, packaging, paints and coatings, power generation, refining, synthetic fiber, textile chemicals, and dye industries. Huntsman Corporation was founded in 1970 and is based in Salt Lake City, Utah.

Advisors' Opinion:

[By Ben Levisohn]
Huntsman (HUN) has gained 2.5% to $19.75 after the chemical company’s shares were raised to Buy from Hold at Jefferies.

Bristol-Myers Squibb (BMY) has advanced 1.9% to $44.37 after the pharmaceutical company’s shares were upgraded to Overweight from Neutral by JPMorgan.
[By Victor Selva] re promising results, and less volatile revenues during these last years. This, of course, has led to a high price to earnings ratio discouraging investors as we see later.

Geographically Diversified

On 2012, almost 50% of Eastman sales were generated in North America, while more than 25% were in Asia and 20% in Europe, Middle East and Africa. This diversification is to be taken into account since it guarantees long-term revenue, even if cigarette consumption decreases in some specific region (for instance, American sales declined �in recent years), which would stabilize acetate tow demands worldwide.

Industrial Background and Gurus��Preference

Eastman�� earnings per share growth was significantly higher than industry median (46.9% vs. 5.2%) but so was Huntsman��, at 46.5%. The critical difference between these two industry giants stands out by looking at their price to earnings: Eastman�� is below median (16.4 vs. 19.1) while Huntsman rose up to 130.1, thus entailing a significant price premium relative to industry peers��average.

Although Ashland does have an inferior price to earnings ratio than Eastman�� (11.5), there�� a significant difference in their earnings per share growth: 27%, probably caused by a decline in revenue.

This might have been one of the reasons that motivated investors David Dreman (Trades, Portfolio) and Joel Greenblatt (Trades, Portfolio) to significantly reduce their stake in Huntsman (both of them by more than 80% margin). In contrast, Leon Cooperman (Trades, Portfolio) and Scott Black (Trades, Portfolio), reinforced their positions in Eastman. Most notably, Ray Dalio (Trades, Portfolio) even sold out his Huntsman position and bought more than 50,000 Eastman shares and a smaller 5,600 share position at Ashland by the end of September.

Although being volatile, Eastman appears to show a promising future since it�� both cheaper and faster growing than its rivals in che
[By Jake L'Ecuyer]
Leading and Lagging Sectors
In trading on Thursday, basic materials shares were relative leaders, up on the day by about 1.20 percent. Among the leading sector stocks, gains came from Axiall (NYSE: AXLL), Materion (NYSE: MTRN), Huntsman (NYSE: HUN) and Joy Global (NYSE: JOY).
[By Monica Gerson]
Huntsman (NYSE: HUN) surged 8.05% to $20.68 in the pre-market session after the company announced its plans to buy Rockwood Holdings' (NYSE: ROC) Performance Additives and Titanium Dioxide businesses for $1.1 billion in cash.

Bank Bets: New York to Palo Alto

Doug Hughes, explains the attraction of smaller, regional banking stocks; here, the editor of Bank Newsletter, also highlights two current favorites in this niche market.

Steve Halpern: Joining us today is bank sector expert, Doug Hughes. How are you doing today, Doug?

Doug Hughes: Good, how are you?

Steve Halpern: Very good. In your Bank Newsletter, you specialize in smaller regional banks. Could you briefly explain for our listeners the attraction of these smaller firms relative to the larger national financial institutions?

Doug Hughes: The main attractions are, usually, you can speak to management and get to know them on a personal basis, and/or they have a valuation that's just much simpler and easier to understand, and usually they're at a small niche market where they can write much better profits than the bigger banks if they're run correctly.

Steve Halpern: Now, are these also areas where you're looking at these banks and other analysts may not be following them closely?

Doug Hughes: Yeah, a lot of the smaller or mid-sized regionals are trading, maybe 10,000, maybe 20,000 shares a day and that's probably not enough shares or volume for the bigger mutual funds—hedge funds—to get involved in these situations.

Steve Halpern: Okay, today we're going to walk through two specific investment ideas that you find attractive in the banking sector. The first is Chemung Financial (CHMG), a New York-based operation that happens to be one of the oldest banks in the country. Could you tell us a little more about that?

Doug Hughes: Correct. It was established in 1833, if you can believe it. It's just an upstate New York bank that's probably doing quite a bit of expansion.

They've just picked up a bunch of branches from Bank of America, in summary, the same markets, decent growth college towns, and they've expanded to Albany area of New York where there's definitely some better growth and they seem to be growing their loans, finally, at a decent clip, and management owns 25% of the stock.

The hidden asset on this one is they own almost a $2 billion fund that they actually manage at their bank. It's bigger than the size of their bank in assets, so there's some definitely some value there.

It's trading just $2 over book value, pays a 3.5% cash dividend, and, if it was to sell out, which is one of the main reasons to own these community banks, its worth, at least, double the current trading range.

Steve Halpern: So, when you look at a bank like this that could possibly be a buyout, I assume you like the bank—if it remained as an independent, you would still like the operations?

Doug Hughes: Of course. Always. This bank has earning power of $5 a share, if it was run correctly. Currently it's earning under $3 a share, and/or if management is gone, the top 10 guys pay themselves over $2.5 million, right there is another 70 cents in earnings per share.

So there's many ways to value this company, but I always go by earnings. That's the number one thing, if there is no takeout, and $5 times a fee of, say $12, would give you the $60 buyout price, which would be even low.

Steve Halpern: Now, you also like the outlook for a company called AVIDBANK Holdings (AVBH), which you notice is a fast-growing bank in an area that's best known for its technology companies. Could you share your thoughts on AvidBank?

Doug Hughes: Sure, also, this one is a completely, basically, opposite of the slower growth Chemung areas. This is in Palo Alto, California, the hottest part of the country, where Facebook is headquartered. Tons of new technology companies, old technology companies, everybody is in this market.

They do all kinds of commercial lending, so all different types of offers. And the one thing that you have to be careful of here is, they're not having any bad loans, this bank has none. It's run by very smart management. Management owns 25%, also, of the stock here.

They also did a secondary back about nine months ago, the management bought 25% of that, institutions bought the rest. It was like a private placement to raise capital because they're growing so fast. This bank, in this type of market, is worth at least two times book.

Currently, it's trading about one times book, maybe a buck over that, and has earnings power here of $2.50 a share next year, once it gets running on all cylinders, which, again, gives it a buyout price, honestly, over $25, and it's currently trading at only $11.

Steve Halpern: Well, we appreciate you taking the time today. Thank you so much for joining us.

Doug Hughes: You're welcome. Have a nice day.

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10 Best Valued Stocks To Own For 2014

Goldman Sachs (NYSE:GS) released a 53-page report June 16 analyzing the car business. A very small section of the report (one paragraph) lowered its price target for Tesla (Nasdaq:TSLA) to $84, sending the electric carmaker's stock tumbling 14%. It's come back some in subsequent trading. The question for investors--Is it time to sell? I don't think so. Here's why.

SEE: Why There ARe Few Sell Ratings On Wall Street

Profitable
That's not an easy task. In May I marveled at the fact the markets valued Tesla at more than Fiat (OTCBB:FIATY) despite the fact the Italian-American carmaker produced 200 times as many vehicles annually. This historic revelation came just four days after announcing its first profitable quarter in its 10-year history. In those four days, its stock jumped 49% to $83.24 per share. Tesla, who will deliver just 21,000 Model S vehicles for all of 2013, can't possibly be worth more than Fiat. At least that was the argument in May. Goldman's view, albeit two months later, essentially comes to the same conclusion. They would be wrong.

10 Best Valued Stocks To Own For 2014: 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 Eric Volkman]
Tupperware Brands (NYSE: TUP ) is reaching into its corporate bowl for a fresh payout to shareholders. The company has declared a quarterly dividend of $0.62 per share. This will be paid on July 8 to stockholders of record as of June 19. That amount matches the firm's previous distribution, which was paid in early April. Prior to that, Tupperware Brands was rather less generous, handing out $0.36 per share.
[By Ben Levisohn]
Shares of Herbalife have gained 0.9% to $79.51 this morning in pre-open trading. Its shares have gained 139% this year, a nice gain, but lagging Nu Skin Enterprises 271% rise. Avon Products�(AVP), another multi-level marketer, has gained 21% so far this year, while Tupperware Brands�(TUP) has risen 49%.
[By Arie Goren]
After running this screen on May 21, 2013, before the markets' open, I discovered the following eight stocks: Sunoco Logistics Partners LP (SXL), Leggett & Platt Inc (LEG), Copa Holdings SA (CPA), RPC Inc. (RES), Tupperware Brands Corp. (TUP), Herbalife Ltd. (HLF), John Wiley & Sons Inc. (JW.A) and C.H. Robinson Worldwide Inc. (CHRW).

10 Best Valued Stocks To Own For 2014: 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 Tyler Crowe]
Another reason that shale gas development has not as quickly developed is a lack of clear patent protection laws,�especially�in China. While both Schlumberger (NYSE: SLB ) and Haliburton (NYSE: HAL ) have expressed an interest in developing Chinese shale gas, a lack of intellectual-property protection has them hesitant to going all in. Rather, both companies have taken minority interests in smaller,�Chinese-based companies and plan to take orders of drilling fluids and equipment. These kinds of moves are not necessary in the U.S. and have allowed companies to protect and profit from their expertise.
[By David Smith]
A promising partnership
Total outlays for subsea facilities were slightly more than $25 billion in 2011. That number is expected to rocket to about $130 billion by 2020. Among several companies that will benefit from this nearly five-fold growth are Schlumberger (NYSE: SLB ) and Cameron International (NYSE: CAM ) .
[By Rick Aristotle Munarriz]
Bloomberg via Getty Images You can never know in advance all the news that will move the market in a given week, but some things you can see coming. From a parade of bankers' earnings to a pizza giant rolling out a new crust, here are some of the things that will help shape the week ahead on Wall Street. Monday -- X Marks the Spot: Data storage is a big part of businesses in the modern age; companies have massive amounts of information to manage and keep secure. Xyratex (XRTX) may not be a household name, but it is well-known to corporate IT departments seeking enterprise data storage solutions. Xyratex reports on Monday afternoon. It's seen better days, and analysts predict it will report a sharp drop in revenue. However, Xyratex has been able to beat Wall Street's profit targets with ease over the past four quarters. Tuesday -- Big Banking's Big Close Up: It's going to be a roll call of the "too big to fail" banking behemoths as they step up for their quarterly results. Wells Fargo (WFC) and JPMorgan Chase (JPM) kick things off on Tuesday. That will be followed by Bank of America (BAC) on Wednesday. Citigroup (C) and Goldman Sachs (GS) step up on Thursday. These are interesting times for the financial services providers. Interest rates are starting to move higher, and that may get in the way of demand for mortgages, but it will also help improve the chances that customers open and fund savings and checking accounts. Wednesday -- Tracking Trains: Railroads may seem like yesterday's mode of transportation, but rail remains a viable way to get goods moving across the country. CSX (CSX) reports on Wednesday. The provider of rail, intermodal, and rail-to-truck transload services and solutions has been shipping goods for 185 years. It offers coverage through every major metropolitan market in the eastern United States. Analysts see revenue inching up by 3 percent, with CSX's profit of $0.42 a share besting the $0.40 a share it posted a year earlier. CSX will

Best Energy Stocks To Own For 2014: 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 Anders Bylund]
This uncertainty and story-focused action have turned a boring bank stock into the most volatile ticker on the Dow. It sports a five-year beta value of 2.4, far ahead of the market average of one. The Dow's second- and third-highest beta values belong to Alcoa (NYSE: AA ) and Caterpillar (NYSE: CAT ) , at 2.1 and 1.9, respectively.

10 Best Valued Stocks To Own For 2014: 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 Demitrios Kalogeropoulos]
Costly market share gains
The problem is that Family Dollar has had to pay up for its increasing market share and sales levels. The company's gross profit margin fell by more than a full percentage point, to 34.7% last quarter. In contrast, Dollar Tree (NASDAQ: DLTR ) booked an expansion of profits, to 35.2%, continuing a trend that's seen it pull away from Family Dollar.
[By Lawrence Meyers]
The finance sector, as mentioned, can make money in many ways. The second-highest growth sector is expected to be consumer discretionary, with a 6.2% increase. When you look at earnings from luxury brands like Tiffany & Co. (TIF), and that the hotel sector continues to do very well, it suggests that those people who are in good financial shape are spending their money. Meanwhile, dollar players like Dollar Tree (DLTR) continue to perform very well, suggesting that folks with less money are spending it on cheaper items.
[By Traders Reserve]
I do believe as Wal-Mart gets hurt, the dollar stores will do a little better ��especially Dollar General (DG), but don�� overlook� Dollar Tree (DLTR). Wall Street is worried about Costco (COST) but I believe it will actually outperform expectations. Costco seems to have figured out how to grow much faster than Wal-Mart and still provide affordable health insurance for most employees.

3 Stock Spinoffs That Will Outperform Their Parents

Popular Posts: 5 Blue-Chip Stocks Set to Boom Even MoreThe Best Ways to Buy the Alibaba IPOAmerican Funds: 5 Mutual Funds to Buy Recent Posts: 3 Homebuilders Building on Solid Foundations 3 Stock Spinoffs That Will Outperform Their Parents Take Buffett’s Advice: 5 Vanguard Funds to Buy View All Posts

spinning top 630 300x203 3 Stock Spinoffs That Will Outperform Their Parents
Spinoffs — they’re hot right now.

Companies from all kinds of industries are divesting subsidiaries that don't fit by spinning them out into independent, separately run businesses. Generally, spinoffs outperform the S&P 500 in their first 12 months of trading, making them very attractive to investors. Especially interested are existing shareholders of the parent company. They're wondering whether they should sell the new shares they receive, keep them, or sell their shares in the parent and reinvest the proceeds in the new company.

It's not a slam-dunk decision.

Let me make it a little easier. Here are my three choices of spinoffs that will outperform their parent over the next 12 to 18 months.

Top Spinoffs: Lands’ End

landsend185 3 Stock Spinoffs That Will Outperform Their Parents InvestorPlace contributor James Brumley believes Eddie Lampert's move to spin off Lands' End from its parent – Sears Holdings (SHLD) — is simply a $500 million lifeline. While I agree the dividend is burdensome, it isn't life-threatening. The interest expense in 2014 on the $515 credit facility used to pay the dividend is estimated to be $25 million. Lands' End's operating income in 2012 was $82 million; in the first three quarters of fiscal 2013 it's 35% higher year-over-year. It will be fine.

Before making any investment it's smart to assess the business and its financial underpinnings. In that regard Lands' End doesn't fare too badly. The company's operating profits have been in decline in recent years, falling from $194 million in fiscal 2010 to $82 million in fiscal 2012. However, that's likely to bounce back in fiscal 2013, coming in somewhere north of $100 million.

Its direct segment, which includes internet and catalog sales and represents 82% of its overall revenue, is highly profitable. For the first 39 weeks of fiscal 2013 ended Nov. 1, the direct segment's revenue was $861 million with operating profits of $76 million. Revenues and operating income grew 1% and 9.6% year-over-year respectively. More important, its operating margins grew 80 basis points to 8.8%. It's the heart of the business.

The fly in the ointment is its retail segment, which had an operating loss of $4.5 million on $172 million in revenue. Its retail business consists of 275 Lands' End Shops at Sears and 16 stand-alone Lands' End Inlet stores. When you consider this revenue was generated from 2.2 million square feet (a dismal average of $80 per square foot), it's not hard to understand why it lost money. Lands' End's No. 1 priority as an independent company is to improve the sales productivity at its Sears locations. If it can double the sales per square foot to $160, you can be sure the segment will be profitable.

Regardless of the retail segment's troubles, I believe SHLD shareholders should sell some or all of their shares once Lands' End is spun off, using the proceeds to buy more. Spinoffs usually outperform. This one will do so by a country mile.

Top Spinoffs: Gaming and Leisure Properties

slot machine 777 185x185 3 Stock Spinoffs That Will Outperform Their Parents Although Penn National Gaming (PENN) completed the spinoff of its real estate assets on Nov. 1, 2013, Gaming and Leisure Properties' (GLPI) shares have traded since mid-October. The only pure-play Casino REIT was created to provide PENN shareholders with two investments: gaming and real estate. Both businesses would be able to focus on what they do best with shareholders better off as a result. I can't argue with the rationale.

PENN shareholders received one share of GLPI for every share of the gaming operation. In order to qualify as a REIT, GLPI was required to purge itself of all accumulated earnings. It did so by paying $210 million in cash and 22 million shares to existing shareholders. The special dividend amounted to $11.84 per share, or $1.05 billion. Even though this is a great gift for the shareholders of record and many have likely sold their GLPI shares, I believe the best is yet to come.

Think about the state of U.S. gambling at the moment. Although Las Vegas and the rest of the gambling hot spots across the country are slowly pulling themselves off the mat, we all know the real money right know is in Asia and other parts of the world. All you have to do is look at the share price of Las Vegas Sands (LVS) to know that the Macau operators are the ones winning at the moment. At some point the U.S. will bounce back as more states accept the reality that some tax revenue from gambling is better than none.

For all we know, PENN will be the winner when it comes to the domestic gambling scene. Then again, maybe it won't. GLPI's announced in December that it was buying the real estate assets of the Casino Queen in East St. Louis for $140 million — the first indication of how it intends to grow its business. Up until then all of 19 casino facilities were formerly owned by PENN, with 17 still operated by them. The Casino Queen deal screams, "We don't know who's going to win on the U.S. gaming front so we want to own as many of the potential winners as possible." If you bet on PENN and it doesn't do so well, its stock goes down. GLPI, on the other hand, continues to collect the rent. The cash flow continues whether or not Penn is operating the casino.

You can bet on Penn — or you can sell PENN, hang on to your GLPI stock and buy LVS stock with the PENN proceeds. That to me seems like a much smarter bet. But I'm no gambler.

Top Spinoffs: Ashford Hospitality Prime

ahp185 3 Stock Spinoffs That Will Outperform Their Parents It seems there are two price points that win in this world: high and low. Ashford Hospitality Trust (AHT) came to the conclusion that its revenue per available room (RevPAR) of $102 was primarily from middle-of-the-road hotels. Nice, but generally inexpensive. The eight hotels it rolled into Ashford Hospitality Prime (AHP) are of a higher price point, averaging a RevPAR of $145 — double the national average. Investors would easily see the difference between the two portfolios, making both stocks more attractive.

Shareholders received one share of AHP stock for every five shares of AHT. Since AHP stock started trading on the NYSE (Nov. 20) it's down 26% through March 20. Meanwhile, AHT stock is up 33% in the same period. Clearly investors see the split as a good thing for the parent.

Long-term it should be good for both.

Since becoming a separately run, independent company, AHP has acquired two additional hotels — The Sofitel Chicago Water Tower and Pier House Resort and Spa — for $246 million. It paid $653,000 per room for the Pier House, which is located in Key West, Fla., the second-highest RevPAR in the U.S.. The Pier House was acquired from AHT while the Sofitel was purchased from an affiliate of Blackstone (BX). It has an option on 12 more hotels currently owned by AHT whose RevPAR skew higher. Long-term, AHP’s RevPAR is only going to go higher, setting it apart from the rest of the public lodging universe … including AHT.

In this particular example I'd recommend you hang on to both AHT and AHP stock because they address separate markets. You also might want to pick up more AHP given its decline since November. Long-term you'll be happy you did.

As of this writing, Will Ashworth did not own a position in any of the aforementioned securities.