9/30/2013

Top 10 High Tech Stocks To Invest In Right Now

Poor JPMorgan (JPM). All it’s trying to do is make a little–make that a lot of–money, and it gets hit with lawsuit after lawsuit. The weight of those cases hang over the banking giant like a pool table in an oak tree–its shares have dropped 9% in August, more than three times Bank of America’s (BAC) 2.7% drop.

AP

To add insult to injury, JPMorgan has gained just 15% in 2013, less than half Morgan Stanley’s (MS) 35% rise, and lagging Citigroup’s (C) 23% advance and Goldman Sachs’ (GS) 21% gain.

Now, however, Baird’s David George and team say it’s time to buy JPMorgan’s shares. They write:

Though recent JPM headlines have documented board structure and litigation issues, investors should stay focused on the core fundamentals, which we believe remain quite good. Despite the elevated litigation costs, the ROTCE has consistently trended in the mid-teens (vs. ~10% large/mid-cap bank peer median)…

Top 10 High Tech Stocks To Invest In Right Now: Old Second Bancorp Inc.(OSBC)

Old Second Bancorp, Inc. operates as a bank holding company for Old Second National Bank that provides commercial and retail banking services. It offers various consumer and commercial products and services, including demand, NOW, money market, savings, time deposit, individual retirement, and Keogh deposit accounts. The company also provides business loans comprising lines of credit for working capital and operational purposes; term loans for the acquisition of equipment; commercial and residential real estate loans; construction loans; and consumer loans, such as motor vehicle, home improvement, home equity, signature loans, and small personal credit lines. In addition, the company offers installment lending services comprising direct and indirect loans to consumers and commercial customers; and residential mortgages, which include conventional, government, and jumbo loans, as well as provides a range of trust, investment, agency, and custodial services for individual, c orporate, and not-for-profit clients. Further, it offers wealth management services; and additional services, such as the acquisition of the United States treasury notes and bonds, the sale of traveler?s checks, money orders, cashier?s checks and foreign currency, direct deposit, discount brokerage, debit and credit cards, and other special services. Additionally, the company provides electronic banking services that comprise Internet banking; and corporate cash management products consisting of remote deposit capture, investment sweep accounts, zero balance accounts, automated tax payments, ATM access, telephone banking, lockbox, automated clearing house transactions, account reconciliation, controlled disbursement, detail and general information reporting, wire transfers, vault services for currency and coin, and checking accounts. As of December 31, 2010, it operated 27 branches and 1 satellite facility in Illinois. The company was founded in 1982 and is headquartered i n Aurora, Illinois.

Top 10 High Tech Stocks To Invest In Right Now: Newmont Mining Corporation(Holding Company)

Newmont Mining Corporation, together with its subsidiaries, engages in the acquisition, exploration, and production of gold and copper properties. The company?s assets or operations are located in the United States, Australia, Peru, Indonesia, Ghana, Canada, New Zealand, and Mexico. As of December 31, 2009, it had proven and probable gold reserves of approximately 93.5 million equity ounces and an aggregate land position of approximately 27,500 square miles. The company was founded in 1916 and is headquartered in Greenwood Village, Colorado.

Top 10 Gold Stocks To Own For 2014: Exceed Company Ltd.(EDS)

Exceed Company Ltd. engages in the design, development, and wholesale of footwear, apparel, and accessories in the People?s Republic of China. The company offers its products under the Xidelong brand name for sports and leisure applications to customers aging between 15 to 35 years. Its products include running, leisure, basketball, skateboarding, canvas, tennis, and outdoor footwear; apparel primarily consisting of sports tops, pants, jackets, track suits, and coats; accessories, such as bags, socks, hats, and caps. The company distributes its products primarily through Xidelong retail stores that are operated by independent third-party distributors and retailers over which the company has limited control. Exceed Company Ltd. is based in Central, Hong Kong.

Top 10 High Tech Stocks To Invest In Right Now: Metabolix Inc.(MBLX)

Metabolix, Inc., a bioscience company, develops and commercializes technologies for the production of polymers and chemicals in plants and in microbes. It offers a proprietary microbial fermentation system to produce a family of polymers known as polyhydroxyalkanoates under the Mirel brand. Mirel holds biodegradability characteristics; and would be used in a range of commercial applications, including products used in agriculture and horticulture, compost and organic waste diversion bags, marine and aquatic applications, consumer products, business equipment and durable goods, and general packaging materials. The company also develops a proprietary platform technology for co-producing plastics, chemicals, and energy from crops, such as switchgrass, oilseeds, and sugarcane. It has a strategic alliance with ADM Polymer Corporation. The company was founded in 1992 and is based in Cambridge, Massachusetts.

Top 10 High Tech Stocks To Invest In Right Now: MedCath Corporation(MDTH)

MedCath Corporation, together with its subsidiaries, engages in the ownership and operation of hospitals in partnership with physicians in the United States. The company focuses primarily on providing acuity services, including the diagnosis and treatment of cardiovascular disease. As of November 11, 2011, MedCath Corporation owned and operated 2 hospitals with a total of approximately 159 licensed beds, located in California and Texas. The company was founded in 1996 and is headquartered in Charlotte, North Carolina.

Top 10 High Tech Stocks To Invest In Right Now: Hsbc Hdg(HSBA.L)

HSBC Holdings plc provides various banking and financial products and services. The company?s Retail Banking and Wealth Management business offers a range of personal banking products, including current and savings accounts, mortgages and personal loans, credit cards, debit cards, and local and international payment services; and wealth management services comprising insurance and investment products, and asset management and financial planning services. Its Commercial Banking business provides overdrafts, term and syndicated loans, acquisition and project finance, and asset finance; receivables finance; payments and cash management services, such as payments and collections, liquidity management, and account services; commercial cards; international trade finance; treasury and capital market products; commercial cards; insurance; and cash and derivatives in foreign exchange and rates, as well as online and direct banking services. The company?s Global Banking and Market s business offers treasury and capital markets services consisting of foreign exchange; currency, interest rate, bond, credit, equity, and other derivatives; government and non-government fixed income and money market instruments; precious metals and exchange-traded futures; equity services; capital markets instruments; securities services, which include custody and clearing services, and funds administration; and financing, advisory, and transaction services. Its Global Private Banking provides a range of private banking, investment management, trust solution, and corporate finance solutions to high net worth individuals and families. The company operates through a network of approximately 7,200 offices in 85 countries and territories in Europe, the Asia-Pacific region, the Americas, the Middle East, and Africa. HSBC Holdings plc was founded in 1865 and is headquartered in London, the United Kingdom.

Top 10 High Tech Stocks To Invest In Right Now: Intersections Inc.(INTX)

Intersections Inc. provides subscription based consumer protection services and other consumer products and services primarily in the United States. The company operates in three segments: Consumer Products and Services, Online Brand Protection, and Bail Bonds Industry Solutions. The Consumer Products and Services segment offers credit reports; daily, monthly, and quarterly monitoring of subscriber?s credit files; reports and monitoring services based on additional information sources; and credit scores and credit score analysis tools, credit education, identity theft recovery services, identity theft cost reimbursement, and software and other technology tools to protect against identity theft. Its products and services also include consumer discounts on healthcare, home, and auto related expenses; access to professional financial and legal information; and life, accidental death, and disability insurance, as well as distributes online privacy protection software. This seg ment markets its products and services to credit card, direct deposit, or mortgage issuing financial institutions. The Online Brand Protection segment provides online brand protection services, including online channel monitoring, auction monitoring, and other services to corporate brand owners or law firms, as well as offers forum, blog, and newsgroup monitoring. The Bail Bonds Industry Solutions segment offers automated service solutions for the bail bonds industry, which include accounting, reporting, and decision making tools that allow bail bondsmen, general agents, and sureties to run their offices, to exercise operational and financial control over their businesses, and to make underwriting decisions. The company was founded in 1996 and is headquartered in Chantilly, Virginia.

Top 10 High Tech Stocks To Invest In Right Now: CBOE Holdings Inc.(CBOE)

CBOE Holdings, Inc., through its subsidiaries, operates markets for the execution of transactions in exchange-traded options. The company offers marketplaces for trading of options on individual equities, various market indexes, exchange-traded notes, and exchange-traded funds, as well as futures contracts and cash equities. It has strategic relationships with Standard & Poor's Corporation; Dow Jones & Co.; NASDAQ; and Frank Russell Co. The company was founded in 1973 and is based in Chicago, Illinois.

Advisors' Opinion:
  • [By CNNMoney Staff]

    Stocks continued to rally despite the fact that options trading was temporarily halted Monday afternoon at exchanges run by CBOE Holdings (CBOE), Nasdaq OMX (NDAQ), BATS Global Markets and Miami International Holdings due to issues at the Options Price Reporting Authority (OPRA), which provides trading data and price quotes.

Top 10 High Tech Stocks To Invest In Right Now: Pfizer Ltd (PFIZ.NS)

Pfizer Limited operates in three segments: Pharmaceuticals, Animal Health and Services. The Pharmaceuticals business consists of manufacturing of drugs and formulations, trading of formulations, and also includes rendering of marketing services. The Animal Health business has a presence primarily in the animal health and poultry market segments and also includes rendering of marketing services. Services segment convicts of clinical development operations primarily include conducting clinical trials, product development and undertaking data management for drug development. During the fiscal year ended March 31, 2012, the Company had launched 26 branded value offerings (BVOs) mainly in the anti-infective, analgesic, central nervous system (CNS), cardiovascular system (CVS) and diabetes segment. The Company incorporated Pfizer Animal Pharma Private Limited (PAPPL), wholly owned subsidiary on February 10, 2012. On April 2, 2012, the Company transferred its Animal Health Busine ss to PAPPL.

Top 10 High Tech Stocks To Invest In Right Now: Coopers Park Corporation(XCP.V)

Coopers Park Corporation engages in the acquisition, development, and marketing of three residential condominium properties in Vancouver, British Columbia. The company is based in Vancouver, Canada.

Nomura Securities Starts Coverage on Abercrombie with “Buy” Rating (ANF)

On Monday, Nomura Securities reported that it has begun coverage on apparel retailer Abercrombie & Fitch Co. (ANF).

The firm has initiated coverage on ANF with a “Buy” rating and $43 price target. This price target suggests a 15% upside from the stock’s current price of $36.45.

Analyst Simeon Siegel noted: “We believe ongoing top-line deceleration has been priced in (shares are -25% YTD vs. +3% for our coverage group) and expense initiatives coupled with a healthy cash balance make ANF attractive at current levels as a longer-term investment. With minimal visibility on trends, we lack conviction in a near-term comp recovery and believe Street estimates beyond 3Q may still prove too high. However, we believe that cheap valuation (11.6x PE, 4x EBITDA, and 9.6% FCF yield for FY14), $0.80-0.85 of expense-driven EPS support and $0.20+ benefit from share repurchases make ANF attractive at current levels for investors willing to wait. We estimate FY13/FY14 EPS of $1.90/$3.10 vs. Street at $2.10/$3.12. Our target price of $43 is based on 14x our FY14 estimate, versus the peer group average multiple of 14x and the company's historical average of 14.8x.”

Abercrombie & Fitch shares were mostly flat during pre-market trading Monday. The stock is down 24% YTD.

9/29/2013

The Rules Of The Game Matter...A Lot

I seem to keep seeing this in many monetary circles – theorists saying things that “prove” their thinking even though they’re wildly illegal. The Market Monetarists do it at times when they say the Fed could just “buy up everything” and the MMT people do it sometimes when they claim the government has created “self imposed constraints”. This is misleading in my opinion.

The thing is, the monetary system is designed with very specific institutional arrangements that define the rules of the game. If the rules change, like, if the Fed could really just “buy up everything”, then that totally changes the way the Fed operates and completely changes what the Fed actually is (as previously described). It’s like watching American Football and saying that offensive linemen are also wide receivers because the ineligible man down field rule is a “self imposed” constraint that doesn’t really mean offensive lineman aren’t receivers. That’s ridiculous. The rules exist for a purpose and they clearly define the difference between offensive linemen and wide receivers. The monetary system is constructed with the same basic thinking.

Laws define the rules of the game and specifically define how certain entities can and can’t operate. Using examples where the current laws don’t apply is the creation of an alternative universe and renders your thinking largely void of value. It might be useful for theoretical purposes, but that’s about it. Until the rules change, offensive linemen are offensive linemen and wide receivers are wide receivers. If we’re going to have a realistic and useful conversation about the monetary system then we should operate within the rules of the current game and not the rules you wish existed.

Source: The Rules Of The Game Matter...A Lot

Mid-Morning Market Update: Markets Open Higher; FactSet Research Posts Downbeat Q4 Earnings

Following the market opening Tuesday, the Dow traded up 0.30 percent to 15,540.55 while the NASDAQ surged 0.33 percent to 3,730.07. The S&P also rose, gaining 0.29 percent to 1,702.52.

Top Headline
FactSet Research Systems (NYSE: FDS) reported a 5 percent rise in its fiscal fourth-quarter earnings. FactSet Research's quarterly profit surged to $51 million, or $1.16 per share, from $48.5 million, or $1.08 per share, in the year-ago period. Excluding one-time items, its adjusted earnings came in at $1.20 per share, versus analysts' estimates of $1.21 per share. Its revenue rose 5.6 percent to $219.3 million. FactSet Research had expected earnings of $1.18 to $1.21 per share on revenue of $218 million to $221 million. For the current quarter, FactSet Research expects earnings of $1.21 to $1.24 per share on revenue of $222 million to $225 million. However, analysts were projecting a profit of $1.23 per share on revenue of $224 million.

Equities Trading UP
Repros Therapeutics (NASDAQ: RPRX) shot up 29.82 percent to $27.60 after the company announced topline results from both the second pivotal efficacy study as well as the 6 month safety study of Androxal®. Shares of Kythera Biopharmaceuticals (NASDAQ: KYTH) got a boost, shooting up 26.04 percent to $42.26 after the company reported positive ATX-101 top line phase III trial results for the reduction of submental fat. Aeropostale (NYSE: ARO) was also up, gaining 16.75 percent to $10.05 after private equity firm Sycamore Partners reported that it had bought a 7.96 percent stake in the company.

Equities Trading DOWN
Shares of Outerwall (NASDAQ: OUTR) were down 16.03 percent to $47.00 after the company lowered its forecast for the third quarter and full year. Werner Enterprises (NASDAQ: WERN) shares tumbled 4.71 percent to $23.26 after the company issued a weak third-quarter profit forecast. Bank of America downgraded the stock from Buy to Neutral. Pandora Media (NYSE: P) down, falling 1.71 percent to $23.58 as the company announced its plans to sell 14 million shares of common stock, including 4 million shares from current stockholders.

Commodities
In commodity news, oil traded down 0.61 percent to $105.94, while gold traded down 0.35 percent to $1,313.20. Silver traded down 0.75 percent Tuesday to $21.85, while copper rose 0.39 percent to $3.23.

Euro zone
European shares were mixed today. The Spanish Ibex Index dropped 0.04 percent, while Italy's FTSE MIB Index rose 0.10 percent. Meanwhile, the German DAX dropped 0.04 percent and the French CAC 40 rose 0.04 percent while U.K. shares fell 0.18 percent.

Economics
The ICSC-Goldman Sachs store sales index dropped 1.6 percent in the week ended Saturday from the previous week. U.S. consumer prices increased 0.1 percent in August, while the core CPI also rose 0.1 percent. However, economists were expecting a 0.2 percent rise in both prices. The Johnson Redbook Retail Sales Index fell 0.3 percent in the first two weeks of September versus August. The NAHB housing market index remained at 58 in September. However, economists were expecting a reading of 58 in the month. August's reading was also revised to 58 versus an earlier estimate of 59. The Federal Open Market Committee begins its two-day policy meeting today. The Treasury is set to auction 4-and 52-week bills.

Will Pandora Continue Its Surge Higher With a New CEO?

With shares of Pandora (NYSE:P) trading around $24, is P an OUTPERFORM, WAIT AND SEE or STAY AWAY? Let's analyze the stock with the relevant sections of our CHEAT SHEET investing framework:

T = Trends for a Stock’s Movement

Pandora is an Internet radio company that operates in the United States with over 125 million registered users. Pandora's Music Genome Project and its playlist-generating algorithms predict listener music preferences, play music content suited to the tastes of each individual listener, and introduce listeners to music they will love. The main sources of revenue for the company are advertising as well as subscriptions. As the Internet music boom continues, Pandora is well-positioned to capitalize on potential subscriptions and advertising marketing share.

Pandora has finally tapped a new CEO after announcing in March that current CEO Joe Kennedy was stepping down. Former ad executive Brian McAndrews will take Kennedy's place. McAndrews was likely attractive to Pandora because of his experience in the ad world, which could help the Internet radio provider find new ways to monetize its service. Pandora needs to step up its game in the face of high royalties and new competition from Apple's (NASDAQ:AAPL) rival iTunes Radio.

T = Technicals on the Stock Chart Are Strong

Pandora stock been surging higher over the last several quarters. The stock is currently trading at highs for the year and looks poised to continue. Analyzing the price trend and its strength can be done using key simple moving averages. What are the key moving averages? The 50-day (pink), 100-day (blue), and 200-day (yellow) simple moving averages. As seen in the daily price chart below, Pandora is trading above its rising key averages which signal neutral to bullish price action in the near-term.

P

(Source: Thinkorswim)

Taking a look at the implied volatility (red) and implied volatility skew levels of Pandora options may help determine if investors are bullish, neutral, or bearish.

Implied Volatility (IV)

30-Day IV Percentile

90-Day IV Percentile

Pandora Options

53.74%

16%

15%

What does this mean? This means that investors or traders are buying a small amount of call and put options contracts as compared to the last 30 and 90 trading days.

Put IV Skew

Call IV Skew

October Options

Flat

Average

November Options

Flat

Average

As of today, there is an average demand from call buyers or sellers and low demand by put buyers or high demand by put sellers, all neutral to bullish over the next two months. To summarize, investors are buying a small amount of call and put option contracts and are leaning neutral to bullish over the next two months.

On the next page, let’s take a look at the earnings and revenue growth rates and the conclusion.

E = Earnings Are Mixed Quarter-Over-Quarter

Rising stock prices are often strongly correlated with rising earnings and revenue growth rates. Also, the last four quarterly earnings announcement reactions help gauge investor sentiment on Pandora’s stock. What do the last four quarterly earnings and revenue growth (Y-O-Y) figures for Pandora look like and more importantly, how did the markets like these numbers?

2013 Q2

2013 Q1

2012 Q4

2012 Q3

Earnings Growth (Y-O-Y)

1200.00%

-11.11%

-69.72%

100.00%

Revenue Growth (Y-O-Y)

51.18%

59.07%

53.81%

59.99%

Earnings Reaction

-12.89%

-4.25%

17.56%

-17.46%

Pandora has seen mixed earnings and rising revenue figures over the last four quarters. From these numbers, the markets have expected more from Pandora’s recent earnings announcements.

P = Excellent Relative Performance Versus Peers and Sector

How has Pandora stock done relative to its peers Sirius XM Radio  (NASDAQ:SIRI), CBS (NYSE:CBS), Cumulus Media (NASDAQ:CMLS), and sector?

Pandora

Sirius XM Radio

CBS

Cumulus Media

Sector

Year-to-Date Return

164.70%

33.39%

44.73%

95.51%

39.83%

Pandora has been a relative performance leader, year-to-date.

Conclusion

Pandora is an Internet radio company that attempts to match listeners with their preferences in order to discover music they love. The company has just revealed who the new CEO of the company will be. The stock has been rising higher in recent quarters and is now trading at highs for the year. Over the last four quarters, earnings have been mixed while revenues have been rising, however, investors have expected more from the company. Relative to its peers and sector, Pandora has been a year-to-date performance leader. Look for Pandora to continue to OUTPERFORM.

9/28/2013

Are Independent Producers Better Investments?

Spinning off refinery operations can be a great opportunity. It allows management to focus all of of their attention on finding and developing new fields, but it also exposes companies to more volatility. Smaller firms can prosper by focusing their resources on bringing a select number of plays online, but watch out for falling production from bigger firms. 

The big dog
ConocoPhillips (NYSE: COP  ) spun off Philips 66, becoming the largest independent E&P. In the long run, its size may hold the company back. Its latest quarterly operating income of $14.78 per Boe is respectable for such a large firm, but it is being forced into expensive unconventional plays. The company's own rough estimates project that its base production will fall from 1.5 million barrels of oil equivalent per day (Mmboepd) to 1.0 Mmboepd by 2017.

The majority of its growth will be found in North America. Between Alaska, Canada and the lower 48, it hopes to bring 505 thousand barrels of oil equivalent per day (Mboepd) online between 2012 and 2017. ConocoPhillips has jumped on the fracking train. The Eagle Ford, Permian Basin and the Bakken will provide a substantial portion of its growth over the next five years. Don't expect its Eagle Ford margins to be as high as other producers, as ConocoPhillips has some of its acreage closer to the gas-rich portion of the formation.

The smaller players
Marathon Oil (NYSE: MRO  ) recently spun off its downstream assets into Marathon Petroleum. Marathon Oil's development of the Bakken and Eagle Ford are the main changes boosting its production volumes. Year-over-year, its second quarter U.S. volumes increased 38%. The Eagle Ford alone averaged 80 Mboepd and the Bakken averaged 39 Mboepd.

Looking at Marathon's margins, it produced $9.35 of operating income per Boe in the most recent quarter, placing it a step below ConocoPhillips. Marathon is hard at work boosting its shale output of crude oil and NGLs relative to natural gas, but this a gradual process and its Boe margins will continue to be under pressure. Libya is a latent liability for the company. With a large amount of political risk in the nation, do not expect things to change anytime soon. 

Murphy Oil (NYSE: MUR  ) has already spun off its US retail operations into Murphy Oil USA and is exploring the possibility of spinning off its U.K. refining operations. Divesting its refineries will help direct excess cash to developing new fields. 

With 38% of its proven reserves between the Eagle Ford Shale and its Canadian Syncrude operation, Murphy has already accepted that unconventional plays are the way to grow. . 

North American natural gas is a liability due to depressed market pricing, and Murphy has 29% of its proven reserves in natural gas. On the positive side, 8% of these reserves come from Malaysia where prices are tied to oil benchmarks and command a significantly higher price. 

Looking at Murphy Oil's upstream operating income, it managed to produce $15.55 per Boe. Murphy Oil does not have Marathon's Libyan liabilities, and its recent quarterly production of 207 Mboepd makes it a small producer with a large amount of room to grow. 

Conclusion
Out of the three companies mentioned here, Murphy Oil is a solid company to watch. It is relatively small, allowing for a few major fields like the Eagle Ford to have a substantial impact on its bottom line. It is still waiting to spin-off its U.K. refinery operations, and it is likely that more concrete plans will be announced as a future catalyst.

ConocoPhillips is doing well after creating Phillips 66, but the company is a large producer at 1,552 Mboepd. It will need to keep up its capital expenditures and exploration to maintain production over the coming decade. With 44% of its earnings going to its dividend, its cash flow may become constrained. Marathon has lower margins and a lower yield than ConocoPhillips, but its presence in the Bakken, Eagle Ford and conservative use of cash flow make Marathon a more stable dividend stock. 

Record oil and natural gas production is revolutionizing the United States' energy position. Finding the right plays while historic amounts of capital expenditures are flooding the industry will pad your investment nest egg. For this reason, the Motley Fool is offering a comprehensive look at three energy companies set to soar during this transformation in the energy industry. To find out which three companies are spreading their wings, check out the special free report, "3 Stocks for the American Energy Bonanza." Don't miss out on this timely opportunity; click here to access your report -- it's absolutely free. 

9/27/2013

Jobless claims’ plunge may signal better days

A plunge in jobless claims is raising hopes that the job market is picking up faster than was believed even a few weeks ago.

The latest news was Thursday's report that states received 305,000 new claims for unemployment insurance last week, down from 367,000 at this time last year, and the lowest in more than six years.

Claims had been falling to very low levels for three weeks, but the Labor Department had previously chalked part of the drop up to computer problems in a couple of states that delayed reporting of new claims.

With officials saying Thursday that the computers are fixed, economists are grappling with what happens next, now that the numbers are real.

"The best indicator of the monthly employment report is weekly jobless claims,'' Bank of Tokyo-Mitsubishi economist Chris Rupkey wrote in a note to clients. "It looks like the labor market kicked it up a notch in September. We will see what the monthly jobs report says next Friday, but 305,000 means a monster jobs number is out there on the horizon somewhere. It's coming. Bigger than 200,000 or a big 0.2 percentage point drop in the unemployment rate.''

That would reverse the trend of recent months, which has seen job growth slip even as the unemployment rate has drifted to a post-recession low of 7.3%. The Bureau of Labor Statistics has reported an average of 148,000 new jobs for each of the last three months, compared with more than 224,000 for the three months ending in April.

Barclays raised its estimate of new jobs created in September to 210,000 after the claims report. Brian Wesbury of First Trust Advisors also predicts 210,000 new jobs, the best gain in seven months, while Joel Naroff, of Naroff Economic Advisors, is at 223,000.

Fewer unemployment insurance claims prove that layoffs are slowing, and strongly suggest that hiring is also picking up, Naroff said. The normal pace of firings and failing companies in a 155 million-worker economy would produce more unemployment claims unless pe! ople were being hired so quickly, they never filed for benefits, he argued.

The optimism comes as a number of economic indicators, which ordinarily would help determine the pace of hiring, showed continued signs of sluggishness. The specter of a government shutdown or congressional refusal to raise the federal debt ceiling next month, raising the outside chance of a first-ever U.S. bond default, is a wild card, economists cautioned.

The economy grew at a 2.5% annual rate in the second quarter, the Commerce Department reported Thursday. That was 0.1% below the expected rate, and early third-quarter data point to only 1.3% growth, according to Moody's Analytics. It forecasts 160,000 new jobs for September.

The new optimism would vanish if Congress and President Obama hit an impasse on the budget, Naroff said.

"I always put that caveat in because I don't trust the crazies,'' he said.

9/25/2013

Best Cheap Companies To Own For 2014

Electric-car maker Tesla Motors Inc (NASDAQ: TSLA) is up 337.8% since the start of the year���defying the shorts, all of the�bears and myself included, but there is a growing case against the stock and it dropped a bit on Monday after a Barron�� article appeared over the weekend pointing to ��ubble trouble.��The Barron�� article was more or less a continuation of a lengthy�June cover story where the magazine admitted that while Elon Musk�� award-winning Model is admirable, they are skeptical that Tesla can cut battery costs enough to deliver�a cheaper "Gen 3" car with a 200-mile range by 2017. But if they fail to do so, Barron�� suggested that�Tesla stock might drop toward $50 and that nothing in its results results changes their view.

Thus far, betting against Tesla and Elon Musk has been a loosing bet for the shorts, but the ground may be shifting. Consider the following considerations:

Best Cheap Companies To Own For 2014: Progress Software Corporation(PRGS)

Progress Software Corporation operates as an enterprise software company worldwide. Its products include Progress OpenEdge platform, which offers development tools, application servers, application management tools, and an embedded database; Progress Orbix to address enterprise integration problems with standards-based solutions; and Progress ObjectStore, an object data management system to store data faster than relational database management system or file-based storage system. The company?s products also comprise Progress Responsiveness Process Management suite for business users; Progress Control Tower, an interactive business control panel; Progress Sonic, which comprises an enterprise messaging system and the enterprise service buses; Progress Actional that provides operational and business visibility, root cause analysis, and policy-based security and control of services; Progress Apama, which offers tools for creating, testing, and deploying strategies for applicat ions, including algorithmic trading, market aggregation, smart order routing, market surveillance and monitoring, and risk management; Progress Savvion BusinessManager, a business process management software; and Fuse products that provide customers with access to professional open source integration and messaging software. In addition, it offers Progress DataDirect Connect products, which provide data connectivity components; Progress DataDirect Shadow to provide foundation architecture for standards-based mainframe integration; and Progress Data Services product set that offers data integration for distributed applications. Further, the company provides maintenance, consulting, training, and customer support services. Progress Software Corporation sells its products to independent software vendors, original equipment manufacturers, and system integrators through direct sales force and independent distributors. The company was founded in 1981 and is based in Bedford, Massac husetts.

Best Cheap Companies To Own For 2014: Global Payments Inc.(GPN)

Global Payments Inc. provides electronic transaction processing services for merchants, independent sales organizations (ISO), financial institutions, government agencies, and multi-national corporations located in the United States, Canada, Europe, and the Asia-Pacific region. It offers a comprehensive line of processing solutions for credit and debit cards; business-to-business purchasing cards; gift cards; and electronic check conversion and check guarantee, verification, and recovery, including electronic check services, as well as terminal management. The company also offers proprietary software products to establish revolving check cashing limits for the casinos? customers in the gaming industry. In addition, it sells, installs, and services automated teller machine and point of sale terminals; and provides card issuing services, including card management and card personalization. The company markets its products directly, as well as through ISOs, retail outlets, tra de associations, alliance bank relationships, and financial institutions. Global Payments Inc. has a joint venture with La Caixa Group to provide merchant acquiring services to merchants in Spain. Global Payments Inc. was founded in 2001 and is headquartered in Atlanta, Georgia.

Hot Casino Stocks To Watch For 2014: AeroVironment Inc.(AVAV)

AeroVironment, Inc. designs, develops, produces, and supports unmanned aircraft systems (UAS), and efficient energy systems for various industries and governmental agencies. Its UAS provide intelligence, surveillance, and reconnaissance, including real-time tactical reconnaissance, tracking, combat assessment, and geographic data to the small tactical unit or individual war fighter. The UAS wirelessly transmit critical live video and other information generated by their payload of electro-optical or infrared sensors directly to a hand-held ground control system, enabling the operator to view and capture images during the day or at night on a hand-held ground control unit. AeroVironment also provides spare equipment, alternative payload modules, batteries, chargers, repair services, and customer support for the UAS. In addition, the company produces industrial productivity and clean transportation solutions for commercial and government customers, develops potential clean t ransportation solutions, and performs contract engineering services; offers PosiCharge electric vehicle charging systems for industrial electric material handling fleets, electric vehicle charging systems for passenger and fleet vehicles, and power cycling and test systems for developers and manufacturers of plug-in electric and hybrid vehicles, as well as battery packs, electric motors, and fuel cells; and supplies power cycling and test systems to research and development organizations that focus on developing electric propulsion systems, electric generation systems, and electricity storage systems. It supplies its UAS primarily to the organizations within the United States department of defense. AeroVironment, Inc. was incorporated in 1971 and is headquartered in Monrovia, California.

Advisors' Opinion:
  • [By Jon C. Ogg]

    Aerovironment�Inc. (NASDAQ: AVAV) was maintained Neutral but its 2014 earnings estimates were cut by almost half after the company signaled order delays in its earnings report.

  • [By Rex Moore and Blake Bos]

    The latest in drone and robotics technology was on display recently at the world's largest unmanned systems exhibition in Washington, D.C. California-based AeroVironment (NASDAQ: AVAV  ) , which makes several unmanned aircraft systems, announced at the conference that a solar solution for its hand-launched Puma AE drone has extended its flight time from three to nine hours -- significantly longer than other small drones used in the field today.

  • [By Roberto Pedone]

    One aerospace player that insiders are loading up on here is AeroVironment (AVAV), which is engaged in the design, development, production and support of unmanned aircraft systems and efficient energy systems for various industries and governmental agencies. Insiders are buying this stock into decent strength, since shares are up 23% during the last six months.

    AeroVironment has a market cap of $504 million and an enterprise value of $379 million. This stock trades at a premium valuation, with a trailing price-to-earnings of 108.75 and a forward price-to-earnings of 44.35. Its estimated growth rate for this year is 47.4%, and for next year it's pegged at 82.1%. This is a cash-rich company, since the total cash position on its balance sheet is $128.81 million and its total debt is zero.

    A director just bought 5,000 shares, or about $112,000 worth of stock, at $22.50 per share.

    From a technical perspective, AVAV is currently trending right below its 50-day moving average and above its 200-day moving averages, which is neutral trendwise. This stock has been trending sideways for the last two months, with shares moving between $20.78 on the downside and $23.97 on the upside. Shares of AVAV are now starting to trend within range of triggering a breakout trade above the upper-end of its recent sideways trading chart pattern.

    If you're bullish on AVAV, then look for long-biased trades as long as this stock is trending above support at $22.30 or above its 200-day at $21.05 and then once it breaks out above some near-term overhead resistance levels at $23.60 to $23.97 a share with high volume. Look for a sustained move or close above those levels with volume that hits near or above its three-month average volume of 205,927 shares. If that breakout triggers soon, then AVAV will set up to re-test or possibly take out its next major overhead resistance levels at $25 to $28 a share.

Best Cheap Companies To Own For 2014: Ur Energy Inc(URG)

Ur-Energy Inc., an exploration stage junior mining company, engages in the identification, acquisition, evaluation, exploration, and development of uranium mineral properties. The company has 13 projects located in Wyoming and Nebraska, the United States; and 3 exploration projects located in the Northwest Territories and Nunavut, Canada. Its landholdings cover approximately 90,000 acres in the United States and approximately 140,000 acres in Canada. The company was founded in 2004 and is headquartered in Littleton, Colorado.

Advisors' Opinion:
  • [By John Udovich]

    Since the start of the week, small cap nuclear fuel stock USEC Inc (NYSE: USU) more than doubled for investors, something that has not happened for investors in uranium stocks like Uranium Resources, Inc (NASDAQ: URRE), Denison Mines Corp (NYSEMKT: DNN), Ur-Energy Inc. (NYSEMKT: URG) and Uranerz Energy Corp (NYSEMKT: URZ). To recap: USEC Inc closed at the $6 level on Friday, but then it surged to the $15 level on Monday only to open at the $10 level on Tuesday when it ultimately closed at $12.46. So what in the world is going on with USEC Inc and is it time to revisit nuclear fuel and uranium stocks?

Best Cheap Companies To Own For 2014: DRDGOLD Limited(DROOY)

DRDGOLD Limited engages in the exploration, extraction, processing, and smelting of gold in South Africa. It holds interests in the Blyvoor mine; and the Crown gold surface tailings retreatment facility that reprocesses sand and slimes dumps, as well as involves in the surface retreatment operations. The company was incorporated in 1895 and is based in Roodepoort, South Africa.

Best Cheap Companies To Own For 2014: Cowen Group Inc.(COWN)

Cowen Group, Inc. is a publicly owned asset management holding company. Through its subsidiaries, the firm provides alternative investment management, investment banking, research, and sales and trading services for its clients. It manages separate client focused portfolio through its subsidiaries. Through its subsidiaries, the firm invests in equity and fixed income markets. It also invests in alternative investments markets through its subsidiaries. Cowen Group, Inc. was founded in 1994 and is based in New York, New York with additional offices in Boston, Massachusetts, Chicago, Illinois, Cleveland, Ohio, Dallas, Texas, and San Francisco, California.

Best Cheap Companies To Own For 2014: Horace Mann Educators Corporation(HMN)

Horace Mann Educators Corporation, through its subsidiaries, operates as a multiline insurance company in the United States. The company underwrites and markets personal lines of property and casualty insurance, retirement annuity, and life insurance products. Its products include private passenger automobile and homeowner?s insurance coverage; tax-qualified individual and group annuities in fixed account and combination contracts; and individual and joint whole and term life insurance products. The company offers its products primarily to K-12 teachers, school administrators, education support personnel, and other employees of public schools and their families. It markets its products through its sales force, as well as through independent agents. Horace Mann Educators Corporation was founded in 1945 and is based in Springfield, Illinois.

Best Cheap Companies To Own For 2014: Sirius XM Radio Inc.(SIRI)

Sirius XM Radio Inc. provides satellite radio services in the United States and Canada. It broadcasts a programming lineup of approximately 135 channels of commercial-free music, sports, news and information, talk and entertainment, traffic, and weather on subscription fee basis through two satellite radio systems in the United States; and holds an interest in the satellite radio services offered in Canada. The company also simulcasts music and selected non-music channels over the Internet; and offers applications to allow consumers to access its Internet services on mobile devices. As of December 31, 2010, it had 20,190,964 subscribers. In addition, the company designs, establishes specifications, sources or specifies parts and components, and manages various aspects of the logistics and production of satellite radios; licenses its technology to various electronics manufacturers to develop, manufacture, and distribute radios under various brands; and imports radios distri buted through its Websites. The company?s satellite radios are primarily distributed through automakers, retailers, and its Websites. Further, it provides music services for commercial establishments; a satellite television service to offer music channels as part of certain programming packages on the DISH Network satellite television service; music and comedy channels to mobile phone users through mobile phone carriers; Backseat TV, a service offering television content designed primarily for children in the backseat of vehicles; Travel Link, a suite of data services that include graphical weather, fuel prices, sports schedules and scores, and movie listings; and real-time traffic and weather services. The company was formerly known as Sirius Satellite Radio Inc. and changed its name to Sirius XM Radio Inc. in August 2008. Sirius XM Radio Inc. was founded in 1990 and is headquartered in New York, New York.

Barrick Gold in Talks to Sell Assets (ABX)

Gold mining giant Barrick Gold (ABX) is currently in talks to sell off some of the company’s assets.

After making a $300 million sale last month, the world’s largest gold miner announced that it has seen a high level of interest in some of its mines, including a number of unsolicited offers.

Some analysts have argued that the company should simply spin-off or divest some of the assets it no longer wishes to own, like it did with African Barrick Gold. However, CEO Jamie Sokalsky said that the company is focused on improving operations and that the drawbacks of spin-offs simply make them unattractive at the current time.

Barrick gold shares were up 21 cents, or 1.13%, at Tuesday’s close. With the gold mining sector suffering a major hit in 2013, ABX is down over 46% YTD.

9/24/2013

Investors yank record $20 billion from ETFs

10year yield August

Investors bailed out of bond funds in August as long-term Treasury rates spiked. But investors pulled out of stock funds too due to fears about the Fed and Syria.

NEW YORK (CNNMoney) Investors yanked more than $20 billion out of exchange-traded funds in August, according to Morningstar. That's the largest monthly outflow since the first ETF launched 20 years ago.

Although stocks have been surging for most of the year, August was the worst month of 2013. Stocks fell as traders worried about the potential impact of the Federal Reserve scaling back its stimulus program sooner rather than later. Fears about a U.S. military strike against Syria didn't help either.

Investors pulled more than $15 billion out of U.S. stock ETFs alone. The SPDR S&P 500 (SPY), the largest and most liquid ETF, was the biggest loser.

ETFs are most heavily used by hedge funds and other big institutional investors, but individual investors have been also shifting out of traditional mutual funds into ETFs to take advantage of the lower fees.

This has been the case for both stock funds and fixed-income funds. But bond ETFs were hit hard last month too. Investors withdrew $6.7 billion from bond funds. That's nearly 3% of the assets in these funds.

The Pimco Total Return ETF (BOND), which is managed by Pimco co-founder Bill Gross, suffered its fourth consecutive month of outflows. Investors withdrew $94.6 million from the fund.

The $260 billion Pimco Total Return fund (PTRAX), which the ETF is based on, lost $7.5 billion, according to Morningstar.

Meanwhile, investors pulled $1.1 billion from rival bond fund manager Jeffrey Gundlach's $36.7 billion DoubleLine Total Return Bond Fund (DBLTX), according to Morningstar.

The losses in these major bond funds have taken place as Treasury yields have begun to spike. Bond prices and rates move in opposite directions.

An unprecedented $1.2 trillion was poured in to bond mutual funds and exchange-traded funds since the financial crisis according to TrimTabs. It seems that investors may no longer view bonds as secure investments at a time when the Fed may be looking to slow down the pace of its asset purchases.

Economists have been speculating that the Fed could begin pulling back on its controversial $85 billion a month bond-buying program at its meeting next week.

"Now that these 'safe' investments have delivered losses for four consecutive months ... investors are scrambling for the exits," said analysts at TrimTabs.

Bond yields hitting 3%? Not so fast!   Bond yields hitting 3%? Not so fast!

But even if the Fed does begin to taper next week, TrimTabs CEO David Santschi believes it will be a relatively small reduction, as the economic recovery and bond market are fragile.

Plus, there's little chance that that the Fed would want to rock the boat too much before chairman Ben Bernanke leaves his post in January.

Some investors may already be taking that into account. While bond yields have continued to rise so far in September, stocks have bounced back sharply. The S&P 500 is up more than 2% in just the first few days of the month. To top of page

Seriously, Should HP Try to Buy Dell?

Hewlett-Packard Co. (NYSE: HPQ) is still in the beginnings of its long-term turnaround under CEO Meg Whitman. Earnings were not so bad, but there is this continued erosion in the core PC and peripherals market and that is acting as a drag. The same is true for Dell Inc. (NASDAQ: DELL), but the difference is that Michael Dell is trying to complete his acquisition of that PC giant. This would be very complicated and almost certainly would garner intense regulatory hurdles and scrutiny, but we think it is becoming a fair question to ask whether Hewlett-Packard should try to merge with arch-rival Dell.

The first thing that you have to consider is that the Department of Justice and many international and foreign regulators would try to fight or outright block this from the start. What is changing now compared to a decade ago is that PC sales trends are starting to look like cigarette sales trends in the 1990s, decline followed by more decline.

The real issue is twofold. Apple Inc. (NASDAQ: AAPL) had been competing for PC sales, but now its iPad tablets have put a major dent into those sales. Ask yourself what Dell and Hewlett-Packard are garnering in the tablet market sales. Ask the same thing about smartphones. Dell and HP are basically at zero on that front.

What happens if two industry giants come together to say that the only way they can survive is to merge? It is a serious issue happening around PC sales, and competitors like Gateway/Acer, Lenovo, Asus and others are adding incresing competition as this becomes a commoditized cycle. HP critics might have to actually say that the Carly Fiorina acquisition of Compaq was not as bad as they always maintained. And you also cannot forget that International Business Machines Corp. (NYSE: IBM) was so tired of competing in PCs that it actually jettisoned its PC business to Lenovo in China.

Another huge hurdle is the environments, which ultimately will consolidate thousands of jobs. The reality is that Dell and HP have been rivals for so long that it is hard to imagine that the cultures could coexist. Management teams might poison the well. That being said, imagine all of the global supply chains that could be consolidated if the two U.S.-based PC giants were suddenly just one. They might even be able to maintain the two different brands for some time.

Lastly, this might leave Microsoft Corp. (NASDAQ: MSFT) and Intel Corp. (NASDAQ: INTC) in a winner-take-all or in a serious lurch. Microsoft is currently a part of the Dell deal in financing, and there has been some speculation that ultimately Microsoft may have a full interest in buying Dell. This is problematic as well, but it has been discussed by financial media.

We are not trying to suggest that Meg Whitman would really try to do this deal. We are not even suggesting that Michael Dell would eat the crow here and admit for a second that it would be the right merger at all. In fact, we think the regulatory bodies would fight the merger so hard that the companies likely would never even get close to a closing date. The problem is that HP and Dell are both facing pressures that may be permanent and that were not present in the 1990s and 2000s.

There is a reason these two companies have valuations that are so paltry. Dell is going to be acquired for about 12 times next year’s earnings estimates while HP’s 13% stock drop after earnings has it valued at a mere six times next year’s expected earnings.

No one believes in these companies having a great future. Maybe something radical like this will make more sense if we are still talking about the same erosions and pressures in 2016 or beyond.

9/23/2013

Top Biotech Stocks To Invest In Right Now

BOSTON (TheStreet) -- An email from Steven B. about Agenus (AGEN) kicks off this week's Biotech Stock Mailbag:

I was looking at Agenus. I know you have been negative in the past. Any change of opinion with recent developments?

Agenus is awful. The company needed a temporary spike in its stock price this week so it could go out and raise some quick cash. On Tuesday, Agenus issued a press release touting "follow on" results from a mid-stage study of its brain cancer vaccine. Except these new drug data were actually stale, having been previously reported by the company in May.

No matter. Some investors were fooled and bid up Agenus shares 30%-plus intraday Tuesday. After Tuesday's close, Agenus rushed out a quickie stock offering priced at $3 per share (including one-third warrant coverage) and raising $10 million. Nicely played, Agenus. The bloody mess in the corner is what remains of your credibility, but no matter, cash raised. Until next time. Meantime, Seeking Alpha contributor Larry Smith hails Agenus' brain cancer vaccine results as "extremely impressive." Let's unpack this claim: The phase II study enrolled 46 patients with newly diagnosed glioblastoma multiforme treated with Prophage (that's Agenus' cancer vaccine) plus the current standard of care -- radiation therapy plus the drug temozolomide. Analysis of the study data showed a median overall survival of 23.3 months, according to Agenus on Tuesday and last May. There is no comparator arm in this study, which means drawing any conclusion about a potential survival advantage for Prophage is impossible. No matter, because Agenus decides to compare Prophage's survival data with a much larger study of newly diagnosed GBM patients published in the New England Journal of Medicine in 2005. This so-called "Stupp study" showed a median overall survival of 14.6 months for newly diagnosed GBM patients treated with radiation and temozolomide, thereby establishing the current standard of care. Prophage's median overall survival of 23.3 months is much longer than 14.6 months reported for the current standard of care, so therefore Prophage must be working. No. The problem with comparing data across different clinical trials is that patients' baseline characteristics are different. That is true in this case.

Top Biotech Stocks To Invest In Right Now: Alnylam Pharmaceuticals Inc.(ALNY)

Alnylam Pharmaceuticals, Inc., a biopharmaceutical company, engages in discovering, developing, and commercializing novel therapeutics based on RNA interference (RNAi). Its core product programs under clinical or pre-clinical development include ALN-TTR, a Phase I clinical trial program for the treatment of transthyretin-mediated amyloidosis; ALN-APC, a Phase I clinical trial program for the treatment of hemophilia; ALN-PCS for the treatment of severe hypercholesterolemia; ALN-HPN, a pre-clinical development for the treatment of refractory anemia; and ALN-TMP, a pre-clinical development for the treatment of hemoglobinopathies, including beta-thalassemia and sickle cell anemia. The company?s partner-based programs comprise ALN-RSV01, a Phase II clinical trial program for the treatment of respiratory syncytial virus infection; ALN-VSP, a Phase I clinical trial completed program for the treatment of liver cancers; and ALN-HTT, a pre-clinical development for the treatment of Huntington?s disease. It has strategic alliances with Novartis Pharma AG; F. Hoffmann-La Roche Ltd; Takeda Pharmaceutical Company Limited; Isis Pharmaceuticals, Inc.; Medtronic Inc.; Kyowa Hakko Kirin Co., Ltd.; and Cubist Pharmaceuticals, Inc. The company was founded in 2002 and is headquartered in Cambridge, Massachusetts.

Top Biotech Stocks To Invest In Right Now: RXi Pharmaceuticals Corp (RXII)

RXi Pharmaceuticals Corporation (RXi), incorporated on September 8, 2011, is a development-stage company. The Company is a biotechnology company focused on discovering, developing and commercializing therapies addressing medical needs using RNA interference (RNAi)-targeted technologies. As of July 12, 2012, RXi was focusing on its internal therapeutic development efforts in fibrosis. RXI-109 is its RNAi product candidate, which is a dermal anti-scarring therapy that targets connective tissue growth factor (CTGF). The Company�� therapeutic platform consists of two main components: RNAi Compounds (rxRNA) and Advanced Delivery Technologies. RNAi compounds include rxRNAori, rxRNAsolo and sd-rxRNA, or self-delivering RNA. On April 26, 2012, it completed the spin-off transaction from Galena Biopharma, Inc. (Galena).

In January 2011, the Company announced research results in collaboration with Generex Biotechnology Corporation, and RXi�� wholly owned subsidiary Antigen Express, Inc., in developing vaccine formulations for immunotherapy. In January 2011, it announced initial results as part of its collaboration with miRagen Therapeutics, Inc. in creating microRNA mimics, or artificial copies of microRNAs, using the Company�� sd-rxRNA technology. In February 2011, it announced the initiation of RXi�� development program for RXI-109.

Hot Bank Stocks To Invest In 2014: Gilead Sciences Inc.(GILD)

Gilead Sciences, Inc., a biopharmaceutical company, engages in the discovery, development, and commercialization of therapeutics for the treatment of life threatening diseases worldwide. Its products include Atripla, Truvada, Viread, Emtriva for the treatment of human immunodeficiency virus infection in adults; Hepsera, an oral formulation for the treatment of chronic hepatitis B; AmBisome, a amphotericin B liposome injection to treat invasive fungal infections; Letairis, an endothelin receptor antagonist for the treatment of pulmonary arterial hypertension; Ranexa for the treatment of chronic angina; Vistide, an antiviral medication for the treatment of cytomegalovirus retinitis in patients with AIDS; and Cayston, an inhaled antibiotic used as a treatment to enhance respiratory systems. The company?s products also comprise Tamiflu, an oral antiviral for the treatment and prevention of influenza A and B; Macugen, an intravitreal injection for the treatment of neovascular a ge-related macular degeneration; and Lexiscan/Rapiscan, an injection used as a pharmacologic stress agent in radionuclide myocardial perfusion imaging. Its products under the Phase III clinical trials consist of Cobicistat, a pharmacoenhancer that is under evaluation as a boosting agent for HIV medicines; Elvitegravir, an oral integrase inhibitor being evaluated as part of combination therapy for HIV; Integrase Single-Tablet, a ?Quad? regimen of elvitegravir, cobicistat, tenofovir disoproxil fumarate, and emtricitabine for the treatment of HIV/AIDS in treatment-naive patients; and Aztreonam for inhalation solution for the treatment of cystic fibrosis patients with Pseudomonas aeruginosa. The company?s Phase II clinical trials products comprise Cicletanine, Ranolazine, and Aztreonam, as well as GS 9190, GS 9256, and GS 9451. Its Phase I clinical trial products include GS 7340, GS 5885, GS 6620, GS 9620, and GS 6624. The company was founded in 1987 and is headquartered in Fost er City, California.

Advisors' Opinion:
  • [By Jim Lowell, Partner and Chief Investment Strategist, Adviser Investments]

    You'll find Gilead (GILD) and Amgen (AMGN), for example, in his top ten, but he also has some major pharma, some medical equipment and systems, maybe some HMO sprinkled in there in his 101 holdings.

Top Biotech Stocks To Invest In Right Now: StemCells Inc (STEM.W)

StemCells, Inc. (StemCells), incorporated in August 1988, is engaged in the research, development, and commercialization of stem cell therapeutics and related tools and technologies for academia and industry. The Company is focused on developing and commercializing stem and progenitor cells as the basis for therapeutics and therapies, and cells and related tools and technologies to enable stem cell-based research and drug discovery and development. The Company�� primary research and development efforts are focused on identifying and developing stem and progenitor cells as potential therapeutic agents. The Company has two therapeutic product development programs, including its CNS Program, which is developing applications for HuCNS-SC cells, its human neural stem cell product candidate, and its Liver Program, which is characterizing the Company�� human liver cells as a therapeutic product.

CNS Program

The Company in its CNS Program, is in clinical development with its HuCNS-SC cells for a range of disorders of the central nervous system. The CNS includes the brain, spinal cord and eye. In February 2012, the Company had completed a Phase I clinical trial in Pelizeaus-Merzbacher Disease (PMD), a fatal myelination disorder in the brain.

The Company�� CNS Program is focused on developing clinical applications, in which transplanting HuCNS-SC cells protect or restore organ function of the patient before such function is irreversibly damaged or lost due to disease progression. The Company�� initial target indications are PMD, and more generally, diseases in which deficient myelination plays a central role, such as cerebral palsy or multiple sclerosis; spinal cord injury, disorders in which retinal degeneration plays a central role, such as age-related macular degeneration or retinitis pigmentosa. The Company�� product candidate, HuCNS-SC cells, is a purified and expanded composition of normal hum an neural stem cells. Its HuCNS-SC cells can be directly tr! a! nsplanted.

Liver Program

Liver stem or progenitor cells offer an alternative treatment for liver diseases. A liver cellular therapy or cell-based therapeutic provide or support liver function in patients with liver disease. The Company held a portfolio of issued and allowed patents in the liver field, which cover the isolation and use of both hLEC cells and the isolated subset, as well as the composition of the cells themselves.

The Company�� range of cell culture products, which are sold under the SC Proven brand, includes iSTEM, GS1-R, GS2-M, RHB-A, RHB-Basal, NDiff N2, and NDiff N2B27. Its iSTEM is a serum-free, feeder-free medium that maintains mouse embryonic stem cells in their pluripotent ground state by using selective small molecule inhibitors to block the pathways, which induce differentiation. RHB-A is a defined, serum-free culture medium for the selective culture of human and mouse neural stem cells and their maintenanc e and expansion as adherent cell populations. RHB-Basal is a defined, serum-free basal medium. When supplemented with specific growth factors, this media is formulated for the propagation and differentiation of adherent neural stem cells. RHB-Basal can also be tailored to specific-cell type requirements by the addition of customer preferred supplements.

The Company�� NDiff N2 is a defined serum-free scell culture supplement for the derivation, maintenance, expansion and/or differentiation of human and mouse embryonic stem (ES) cells and tissue-derived neural stem cells supplement. Its NDiff N2-AF is a serum-free and animal component-free version of NDiff N2. Its NDiff N2B27 is a defined, serum-free medium for the differentiation of mouse embryonic stem cells to neural cell types. NDiff N27-AF is a serum-free and animal component-free version of NDiff N27. Its GS1-R is a serum-free media formulation shown to enable the derivation and long-term maintenance of tr ue, germline competent rat embryonic stem cells without! the ! ad! dition ! of cytokines or growth factors. Its GS2-M is a defined, serum- and feeder-free medium for the derivation and long-term maintenance of true, germline competent mouse iPS cells.

The Company also markets a number of antibody reagents for use in cell detection, isolation and characterization. These reagents are also under the SC Proven brand and it includes STEM24, STEM101, STEM121 and STEM123. Its STEM24 is a human antibody that recognizes human CD24, also known as heat stable antigen (HSA), a glycoprotein expressed on the surface of many human cell types, including immature human hematopoietic cells, peripheral blood lymphocytes, erythrocytes and many human carcinomas. Its CD24 is also a marker of human neural differentiation. Its STEM101 is a human-specific mouse antibody that recognizes the Ku80 protein found in human nuclei. Its STEM121 is a human-specific mouse antibody that recognizes a cytoplasmic protein of human cells. Its STEM123 is a human-specific mouse antibody that recognizes human glial fibrillary acidic protein (GFAP).

The Company�� Other products marketed under SC Proven include total cell genomic DNA (gDNA), RNA and protein lysate reagents purified from homogenous stem cell populations for intra-comparative studies, such as Epigenetic fingerprinting, Southern, Western and Northern blots, PCR, RT-PCR and microarrays. This range of purified stem cell line lysates includes mouse embryonic stem (ES) cells propagated in SC Proven 2i inhibitor-based GS2-M media and mouse ES cell-derived and fetal tissue-derived neural stem (NS) cells propagated in SC Proven RHB-A media.

Top Biotech Stocks To Invest In Right Now: Medivation Inc.(MDVN)

Medivation, Inc., a biopharmaceutical company, focuses on the development of small molecule drugs for the treatment of castration-resistant prostate cancer, Alzheimer?s disease, and Huntington disease. The company?s product candidates under clinical development include MDV3100, which is in Phase 3 development for the treatment of castration-resistant prostate cancer; and dimebon, which is in Phase 3 clinical trial for the treatment of Alzheimer?s disease and Huntington disease. It has collaboration agreements with Pfizer Inc. to develop and commercialize dimebon; and Astellas Pharma Inc. to develop and commercialize MDV3100. The company was founded in 2003 and is based in San Francisco, California.

Top Biotech Stocks To Invest In Right Now: Bioanalytical Systems Inc.(BASI)

Bioanalytical Systems, Inc. provides drug discovery and development services for pharmaceutical, biotechnology, academic, and government organizations primarily in North America, the Pacific Rim, and Europe. The company operates in two segments, Contract Research Services and Research Products. The Contract Research Services segment offers various services, including product characterization, method development, and validation; bioanalytical testing to measure drug and metabolite concentrations in complex biological matrices; stability testing to establish and confirm product purity, potency, and shelf life; in vivo sampling services for the continuous monitoring of chemical changes in life; and pharmacokinetic and safety testing services, as well as provides screening and pharmacological testing, preclinical safety testing, formulation development, regulatory compliance, and quality control testing services. The Research Products segment offers analytical products compris ing liquid chromatographic and electrochemical instruments with associated accessories; in vivo sampling products, such as Culex family of automated in vivo sampling and dosing instruments; and Vetronics? products consisting of instruments and related software to monitor and diagnose cardiac function, and measure other vital physiological parameters in cats and dogs. The company was founded in 1974 and is headquartered in West Lafayette, Indiana.

Top Biotech Stocks To Invest In Right Now: DiaMedica Inc (DMA)

DiaMedica Inc. (DiaMedica) is a development-stage company. The Company is a biopharmaceutical company engaged in the discovery and development of drugs for the treatment of diabetes and related diseases. DiaMedica's compound, DM-199, is a recombinant human protein for the treatment of both Type I and Type II diabetes and their complications. DiaMedica is starting a Phase I/II clinical trial for DM-199. DM-199 is a recombinant human protein, which improves glucose control, protects beta cells through the expansion of a population of antigen-specific immunosuppressive cells (Tregs), and proliferates insulin producing beta cells through the activation of certain growth factors. The Company�� DM-204 is a G-protein-coupled receptor agonist (GPCR) monoclonal antibody to treat Type II diabetes and some of the associated complication's. activating a receptor resulted in insulin sensitivity, insulin secretion and vasodilation.

Top Biotech Stocks To Invest In Right Now: Galena Biopharma Inc (GALE)

Galena Biopharma, Inc. (Galena), formerly RXi Pharmaceuticals Corporation, incorporated on April 3, 2006, is a biotechnology company focused on discovering, developing and commercializing therapies addressing unmet medical needs using targeted biotherapeutics. The Company is pursuing the development of cancer therapeutics using peptide-based immunotherapy products, including its main product candidate, NeuVaxTM (E75), for the treatment of breast cancer and other tumors. NeuVax is a peptide-based immunotherapy intended to reduce the recurrence of breast cancer in low-to-intermediate HER2-positive breast cancer patients not eligible for trastuzumab (Herceptin; Genentech/Roche). On January 19, 2012, the Company initiated enrollment in its Phase 3 PRESENT clinical trial for NeuVax (E75 peptide plus GM-CSF) vaccine in low-to-intermediate HER2 1+ and 2+ breast cancer patients in the adjuvant setting to prevent recurrence (Clinicaltrials.gov identifier NCT01479244). The Prevention of Recurrence in Early-Stage, Node-Positive Breast Cancer with Low to Intermediate HER2 Expression with NeuVax Treatment study is a randomized, multicenter, multinational clinical trial that will enroll approximately 700 breast cancer patients. The Company�� Phase 2 trial of NeuVax achieved its primary endpoint of disease-free survival (DFS). On April 13, 2011, the Company completed its acquisition of Apthera, Inc.,(Apthera).

The Company focuses to start a Phase 2 trial comparing NeuVax in combination with trastuzumab (Herceptin) versus trastuzumab, alone, in a 300-patient, randomized study in the adjuvant breast cancer setting. The Company's second product candidate, Folate Binding Protein-E39 (FBP), is a vaccine, consisting of the peptides E39 and J65, aimed at preventing the recurrence of ovarian, endometrial, and breast cancers. On February 14, 2012, the Company announced the initiation of a Phase 1/2 clinical trial in two gynecological cancers: ovarian and endometrial adenocarcinomas. Folate binding protein has ! very limited tissue distribution and expression in non-malignant tissue and is over-expressed in more than 90% of ovarian and endometrial cancers, as well as in 20% to 50% of breast, lung, colorectal and renal cell carcinomas.

In April 2011, the Company acquired Apthera Inc and its NeuVax product candidate. The Company focuses on developing a pipeline of immunotherapy product candidates for the treatment of various cancers based on the E75 peptide, the advanced of which is NeuVax, which is targeted at preventing the recurrence of breast cancer. NeuVax has had positive Phase 1/2 clinical trial results for the prevention of breast cancer recurrence in patients who have had breast cancer and received the standard of care treatment (surgery, chemotherapy, radiotherapy and hormonal therapy as indicated). The Company had also initiated its Phase 3 PRESENT clinical trial of NeuVax for the prevention of breast cancer recurrence in early-stage low-to-intermediate HER2 breast cancer patients. NeuVax directs killer T-cells to target and destroy cancer cells that express HER2/neu, a protein associated with epithelial tumors in breast, ovarian, pancreatic, colon, bladder and prostate cancers. NeuVax is comprised of a HER2/neu-derived peptide called E75. E75 is a nine-amino acid sequence that is immunogenic (produces an immune response) and GM-CSF is a commercially available protein that acts to stimulate and activate components of the immune system such as macrophages and dendritic cells.

The Company also develops novel applications for NeuVax based on preclinical studies and phases 2 clinical trials which suggest that combining NeuVax and trastuzumab (Herceptin; Genentech/Roche) can increase antigen presentation by tumor cells by promoting receptor internalization and subsequent proteosomal degradation of the HER2 protein. The Company also is pursuing additional therapeutic indications for NeuVax that are in Phase 1/2 clinical trials. RXI-109, is a dermal anti-scarring therapy that targets! connecti! ve tissue growth factor (CTGF) and that may inhibit connective tissue formation in human fibrotic disease.

The Company competes with Roche Laboratories, Inc., Pfizer Inc., Bayer HealthCare AG, Sanofi-Aventis, US, LLC, Amgen, Inc., GlaxoSmithKline plc, Renovo Group plc, CoDa Therapeutics, Inc., Sirnaomics, Inc., FirstString Research, Inc., Merz Pharmaceuticals, LLC, Capstone Therapeutics, Halscion, Inc., Garnet Bio Therapeutics, Inc., AkPharma Inc., Promedior, Inc., Kissei Pharmaceutical Co., Ltd., Eyegene, Derma Sciences, Inc., Healthpoint Biotherapeutics, Pharmaxon, Excaliard Pharmaceuticals, Inc., Alnylam Pharmaceuticals, Inc., Marina Biotech, Inc., Tacere Therapeutics, Inc., Benitec Limited, OPKO Health, Inc., Silence Therapeutics plc, Quark Pharmaceuticals, Inc., Rosetta Genomics Ltd., Lorus Therapeutics, Inc., Tekmira Pharmaceuticals Corporation, Arrowhead Research Corporation, Regulus Therapeutics Inc. and Santaris.

Advisors' Opinion:
  • [By Paul Ausick]

    Stocks on the move: Galena Biopharma Inc. (NASDAQ: GALE) is down 15.4% at $1.93 after pricing a secondary offering of 17.5 million units at $2.00. Safeway Inc. (NYSE: SWY) is up 6.1% at $28.21, after an analyst�� upgrade which sent shares to a new 52-week high of $28.88 earlier. Avanir Pharmaceuticals Inc. (NASDAQ: AVNR) is down 18.2% at $4.08.

9/22/2013

Here Are the Hottest Financial-Sector ETFs

NEW YORK ( TheStreet ) -- Most exchange-traded funds that track the financial sector have rallied lately, but the gains have been particularly strong for ETFs that specialize in insurance and regional banks.

This year SPDR S&P Regional Banking (KRE) returned 28.0%, and SPDR S&P Insurance (KIE) gained 28.5%, according to Morningstar. [Read: The 5 Dumbest Things on Wall Street This Week: Sept. 13]

In comparison, Vanguard Financials (VFH), which holds a broad mix of financial stocks, gained 21.6%, and the S&P 500 returned 19.7%.

The outlook for the hottest financial ETFs remains positive because regional banks and insurers tend to perform well when interest rates are climbing. Insurance companies take in premiums and invest the cash in portfolios of bonds. When yields increase, the income from bond portfolios also climbs. If we are entering an era of higher interest rates -- as most economists expect -- then it is likely that insurers will report stronger returns on equity in coming years. This year insurance companies have gotten an additional boost from rising premiums. The gains appear to signal the beginning of an upward cycle. The industry tends to go through premium cycles that last for several years. During some periods, insurers become more aggressive, slashing premiums to gain more market share. Eventually premiums become too skimpy. With profit margins unacceptably low, the industry begins raising premiums, and a new cycle starts. In recent years, premium cuts hurt profits. Now companies are raising premiums as the industry strives to fatten bottom lines -- and avoid destructive price cutting. The biggest insurance ETFs are SPDR S&P Insurance, with $354 million in assets, and iShares U.S. Insurance (IAK), with $149 million. The two funds have delivered similar returns recently. During the past 12 months, the SPDR ETF returned 33.5%, while the iShares competitor returned 34.8%. When rates rise, banks can charge customers more for loans. That helps institutions of all sizes. But regional and community banks tend to receive a special lift from climbing rates. [Read: What U.S. Investors Should Do About Syria] The smaller banks tend to be simple operations that focus on making loans to individuals and small businesses. Besides making loans, money center banks have a variety of complex businesses -- such as investment banking and derivatives trading -- that don't necessarily improve when rates rise.

During the financial crisis, the regional banks performed better than the money center giants, which were held down by losses in their derivatives businesses.

In 2008, iShares U.S. Regional Banks lost 33.6%, compared to a decline of 54.7% for Financial Select Sector SPDR (XLF), which is dominated by money center institutions.

Although the regional banks have already recorded huge gains since the financial crisis, it seems likely that they can continue performing well. Pressured by regulators, most banks have been tightening their lending standards. That will limit defaults, helping to protect profits.

To hold regional banks, consider SPDR S&P Regional Banking, with $2 billion in assets, or iShares U.S. Regional Banks (IAT), with $510 million. An intriguing way to own a dose of insurers and banks is FAM Value (FAMVX), an actively managed mutual fund that has one-third of its assets in financials. The portfolio managers seek unloved companies with strong cash flows and solid balance sheets. Lately they have been finding insurance companies that sell for less than their historical values. One holding is Markel (NOK), a property/casualty insurer. The company specializes in a range of niches, providing coverage for ambulances, ocean cargo, and day-care centers. FAM portfolio manager John Fox says that Markel has typically traded for between 1.1 and 1.5 times book value. [Read: Why Wall Street Got Apple Wrong This Week] At the moment the stock is near the bottom of the range. The company recently made an acquisition that should eventually boost the stock, says Fox. "This will increase the earnings power and the returns on equity," he says. Another holding is White Mountains Insurance (WTM). The stock sells for a bit less than book value. The company provides specialty insurance and reinsurance, which is coverage for other insurers. At the time of publication, Luxenberg held no positions in securities mentioned. Follow @StanLuxenberg This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.

Stan Luxenberg is a freelance writer specializing in mutual funds and investing. He was executive editor of Individual Investor magazine.

9/21/2013

Top 10 Oil Stocks To Own For 2014

Ever since the OPEC oil embargo 40 years ago, U.S. consumers have responded predictably, like rational economic beings, to every big swing in the price of gasoline. When it spiked, we drove fewer miles, switched to fuel-efficient vehicles, used mass transit more. But when the price declined for a long stretch, we went back to our old gas-guzzling ways. Every prediction of the permanent demise of, say, big SUVs, powerful sports cars, and commuting in pickup trucks proved premature.

Will the next time be different? Is it possible that even if gasoline prices decline consumption won�� go up? I think it�� a good bet, and we probably won�� have to wait long to find out.

My colleagues in the Kiplinger Business Forecasting Group have made a bold prediction that by 2016 the price of petroleum will fall by 20% to 30% from recent averages of about $95 a barrel. That would take a gallon of gasoline down by a similar amount, to an average of $3 a gallon.

Top 10 Oil Stocks To Own For 2014: Alon USA Energy Inc. (ALJ)

Alon USA Energy, Inc. engages in refining and marketing petroleum products primarily in the South Central, Southwestern, and Western regions of the United States. The company operates in three segments: Refining and Marketing, Asphalt, and Retail. The Refining and Marketing segment refines crude oil into petroleum products, including gasoline, diesel fuel, jet fuel, petrochemicals, feed stocks, asphalts, and other petroleum products. It markets finished products and blend stocks through sales and exchanges with other oil companies, state and federal governmental entities, unbranded wholesale distributors, and various other third parties. This segment also markets motor fuels to distributors under the Alon brand; and licenses Alon brand name and provides payment card processing services, advertising programs, and loyalty and other marketing programs to licensed locations. The Asphalt segment is involved in the marketing of patented tire rubber modified asphalt products; and production of paving and roofing grades of asphalt comprising performance-graded asphalts, emulsions, and cutbacks. This segment sells paving asphalt to road and materials manufacturers and highway construction/maintenance contractors; polymer modified or emulsion asphalt to highway maintenance contractors; and roofing asphalt to roofing shingle manufacturers or other industrial users. The Retail segment operates retail convenience stores that offer various grades of gasoline, diesel fuel, food products, tobacco products, non-alcoholic and alcoholic beverages, and general merchandise primarily under the 7-Eleven and Alon brands. As of December 31, 2012, it had 298 retail convenience stores located in Central and West Texas, and New Mexico. The company was founded in 2000 and is headquartered in Dallas, Texas. Alon USA Energy, Inc. is a subsidiary of Alon Israel Oil Company, Ltd.

Advisors' Opinion:
  • [By Tom Dorsey]

    Over a several day period, I submitted questions and Mr. Eisman, President, Chief Executive Officer and Director of Alon USA Energy Inc. (ALJ) and the parent company of Alon USA Partners LP Inc. (ALDW) responded. He provided some key insights to some challenges the company faces, where the company is going, and the opportunities available in the future. This insight should provide investors with additional information to understand the value of the company and the opportunity as an investor in the company.

Top 10 Oil Stocks To Own For 2014: Access Midstream Partners LP (ACMP)

Access Midstream Partners, L.P., formerly Chesapeake Midstream Partners, L.L.C. (Partnership), incorporated on January 21, 2010, owns, operates, develops and acquires natural gas, natural gas liquids (NGLs) and oil gathering systems and other midstream energy assets. The Company is focused on natural gas and NGL gathering. The Company provides its midstream services to Chesapeake Energy Corporation (Chesapeake), Total E&P USA, Inc. (Total), Mitsui & Co. (Mitsui), Anadarko Petroleum Corporation (Anadarko), Statoil ASA (Statoil) and other producers under long-term, fixed-fee contracts. On December 20, 2012, the Company acquired from Chesapeake Midstream Development, L.P. (CMD), a wholly owned subsidiary of Chesapeake, and certain of CMD's affiliates, 100% of interests in Chesapeake Midstream Operating, L.L.C. (CMO). As a result of the CMO Acquisition, the Partnership owns certain midstream assets in the Eagle Ford, Utica and Niobrara regions. The CMO Acquisition also extended the Company's assets and operations in the Haynesville, Marcellus and Mid-Continent regions.

The Company operates assets in Barnett Shale region in north-central Texas; Eagle Ford Shale region in South Texas; Haynesville Shale region in northwest Louisiana; Marcellus Shale region in Pennsylvania and West Virginia; Niobrara Shale region in eastern Wyoming; Utica Shale region in eastern Ohio, and Mid-Continent region, which includes the Anadarko, Arkoma, Delaware and Permian Basins. The Company's gathering systems collect natural gas and NGLs from unconventional plays. The Company generates its revenues through long-term, fixed-fee gas gathering, treating and compression contracts and through processing contracts.

Barnett Shale Region

The Company's gathering systems in its Barnett Shale region are located in Tarrant, Johnson and Dallas counties in Texas in the Core and Tier 1 areas of the Barnett Shale and consist of 25 interconnected gathering systems and 850 miles of pipeline. During the year! ended December 31, 2012, average throughput on the Company's Barnett Shale gathering system was 1.195 billion cubic feet per day. The Company connects its gathering systems to receipt points that are either at the individual wellhead or at central receipts points into which production from multiple wells are gathered. The Company's Barnett Shale gathering system is connected to the three downstream transportation pipelines: Atmos Pipeline Texas, Energy Transfer Pipeline Texas and Enterprise Texas Pipeline. Natural gas delivered into Atmos Pipeline Texas pipeline system serves the greater Dallas/Fort Worth metropolitan area and south, east and west Texas markets at the Katy, Carthage and Waha hubs. Natural gas delivered into Energy Transfer Pipeline Texas pipeline system serves the greater Dallas/Fort Worth metropolitan area and southeastern and northeastern the United States markets supplied by the Midcontinent Express Pipeline, Centerpoint CP Expansion Pipeline and Gulf South 42-inch Expansion Pipeline. Natural gas delivered into Enterprise Texas Pipeline pipeline system serves the greater Dallas/Fort Worth metropolitan area and southeastern and northeastern the United States markets supplied by the Gulf Crossing Pipeline.

Eagle Ford Shale Region

The Company's gathering systems in its Eagle Ford Shale region are located in Dimmit, La Salle, Frio, Zavala, McMullen and Webb counties in Texas and consist of 10 gathering systems and 618 miles of pipeline. During 2012, gross throughput for these assets was 0.169 billion cubic feet per day. The Company connects its gathering systems to central receipt points into which production from multiple wells is gathered. The Company's Eagle Ford gathering systems are connected to six downstream transportation pipelines, which include Enterprise, Camino Real, West Texas Gas, Regency Gas Service, Eagle Ford Gathering and Enerfin. The Company processes gas at Yoakum or other Enterprise plants and transports residue to Wharton residue header w! ith conne! ctions to numerous interstate pipelines.

Haynesville Shale Region

The Company's Springridge gas gathering system in the Haynesville Shale region is located in Caddo and DeSoto Parishes, Louisiana, in one of the core areas of the Haynesville Shale and consists of 263 miles of pipeline. During 2012, average throughput on the Company's Springridge gathering system was 0.359 billion cubic feet per day. The Company connects its gathering system to receipt points that are at central receipt points into which production from multiple wells is gathered. The Company's Springridge gathering system is connected to three downstream transportation pipelines: Centerpoint Energy Gas Transmission, ETC Tiger Pipeline and Texas Gas Transmission Pipeline. The Company's Mansfield gas gathering system in the Haynesville Shale region is located in DeSoto and Sabine Parishes, Louisiana, in one of the areas of the Haynesville Shale and, as of December 31, 2012, consist of 304 miles of pipeline. During 2012, average throughput on the Company's Mansfield gathering system was 0.720 billion cubic feet per day. The Company connects its gathering system to receipt points that are at central receipt points into which production from multiple wells is gathered and treated. The Company's Mansfield gathering system is connected to two downstream transportation pipelines: Enterprise Accadian Pipeline and Gulf South Pipeline. Natural gas delivered into Enterprise Accadian pipeline can move to on-system markets in the Midwest and to off-system markets in the Northeast through interconnections with third-party pipelines. Natural gas delivered into Gulf South pipeline can move to on-system markets in the Midwest and to off-system markets in the Northeast through interconnections with third-party pipelines.

Marcellus Shale Region

Through Appalachia Midstream, the Company operates 100% of and own an approximate average 47% interests in 10 gas gathering systems that consist of approximately 5! 49 miles ! of gathering pipeline in the Marcellus Shale region. The Company's volumes in the region are gathered from northern Pennsylvania, southwestern Pennsylvania and the northwestern panhandle of West Virginia, in core areas of the Marcellus Shale. The Company operates these smaller systems in northeast and central West Virginia, southeast Pennsylvania, northwest Maryland, north central Virginia, and south central New York. During 2012, gross throughput for Appalachia Midstream assets was just over 1.8 billion cubic feet per day. The Company's Marcellus gathering systems' delivery points include Caiman Energy, Central New York Oil & Gas, Columbia Gas Transmission, MarkWest, NiSource Midstream, PVR and Tennessee Gas Pipeline. Natural gas is delivered into a 16-inch pipeline and delivered to the Caiman Energy Fort Beeler processing plant where the liquids are extracted from the gas stream. The natural gas is then delivered into the TETCo interstate pipeline for ultimate delivery to the Northeast region of the United States. Natural gas delivered into Central New York Oil & Gas 30-inch diameter pipeline can be delivered to Stagecoach Storage, Millennium Pipeline, or Tennessee Gas Pipeline's Line 300. In Columbia Gas Transmission lean natural gas is delivered into two 36-inch interstate pipelines for delivery to the Mid-Atlantic and Northeast regions of the United States. Natural gas is delivered into a MarkWest pipeline for delivery to the MarkWest Houston processing plant where the liquids are extracted from the gas stream. In NiSource Midstream natural gas is delivered into a 20-inch diameter pipeline and delivered to the MarkWest Majorsville processing plant where the liquids are extracted from the rich gas stream. In PVR natural gas is delivered into the 24-inch diameter Wyoming pipeline and the Hirkey Compressor Station. In Tennessee Gas Pipeline natural gas is delivered into this looped 30-inch diameter pipeline (TGP Line 300) at three different locations can be received in the Northeast at points along th! e 300 Lin! e path, interconnections with other pipelines in northern New Jersey, as well as an existing delivery point in White Plains, New York.

Niobrara Shale Region

The Company's gathering systems in the Niobrara Shale region are located in Converse County, Wyoming and consist of two interconnected gathering systems and 79 miles of pipeline. During 2012, average throughput in the Company's Niobrara Shale region was 0.013 billion cubic feet per day. The Company connects its gathering systems to receipt points,which are either at the individual wellhead or at central receipts points into which production from multiple wells are gathered. The Company's Niobrara gathering systems are connected to two downstream transportation pipelines: Tallgrass/Douglas Pipeline and North Finn/DCP Inlet Pipeline. Natural gas delivered into Tallgrass/Douglas pipeline is sent to the Tallgrass processing facility; after processing, natural gas is delivered to Cheyenne Hub, Rockies Express Pipeline, or Trailblazer Pipeline through Tallgrass Interstate Gas Transmission.

Utica Shale Region

The Company's gathering systems in the Utica Shale region are located in northeast Ohio and consist of 67 miles of pipeline. The Company's Utica gathering systems are connected to two downstream transportation pipelines: Dominion East Ohio (Blue Racer) and Dominion Transmission, Inc.

Mid-Continent Region

The Company's Mid-Continent gathering systems extend across portions of Oklahoma, Texas, Arkansas and Kansas. Included in the Company's Mid-Continent region are three treating facilities located in Beckham and Grady Counties, Oklahoma, and Reeves County, Texas, which are designed to remove contaminants from the natural gas stream.

Anadarko Basin and Northwest Oklahoma

The Company's assets within the Anadarko Basin and Northwest Oklahoma are located in northwestern Oklahoma and the northeastern portion of the Texas Panhandle and consist of appro! ximately ! 1,578 miles of pipeline. During 2012, the Company's Anadarko Basin and Northwest Oklahoma region gathering systems had an average throughput of 0.457 billion cubic feet per day. Within the Anadarko Basin and Northwest Oklahoma, the Company is focused on servicing Chesapeake's production from the Colony Granite Wash, Texas Panhandle Granite Wash and Mississippi Lime plays. Natural gas production from these areas of the Anadarko Basin and Northwest Oklahoma contains NGLs. In addition, the Company operates an amine treater with sulfur removal capabilities at its Mayfield facility in Beckham County, Oklahoma. The Company's Mayfield gathering and treating system gathers Deep Springer natural gas production and treats the natural gas to remove carbon dioxide and hydrogen sulfide to meet the specifications of downstream transportation pipelines.

The Company's Anadarko Basin and Northwest Oklahoma systems are connected to a transportation pipelines transporting natural gas out of the region, including pipelines owned by Enbridge and Atlas Pipelines, as well as local market pipelines such as those owned by Enogex. These pipelines provide access to Midwest and northeastern the United States markets, as well as intrastate markets.

Permian Basin

The Company's Permian Basin assets are located in west Texas and consist of approximately 358 miles of pipeline across the Permian and Delaware basins. During 2012, average throughput on the Company's gathering systems was 0.076 billion cubic feet per day. The Company's Permian Basin gathering systems are connected to pipelines in the area owned by Southern Union, Enterprise, West Texas Gas, CDP Midstream and Regency. Natural gas delivered into these transportation pipelines is re-delivered into the Waha hub and El Paso Gas Transmission. The Waha hub serves the Texas intrastate electric power plants and heating market, as well as the Houston Ship Channel chemical and refining markets. El Paso Gas Transmission serves western the United ! States ma! rkets.

Other Mid-Continent Regions

The Company's other Mid-Continent region assets consist of systems in the Ardmore Basin in Oklahoma, the Arkoma Basin in eastern Oklahoma and western Arkansas and the East Texas and Gulf Coast regions of Texas. The other Mid-Continent assets include approximately 648 miles of pipeline. These gathering systems are localized systems gathering specific production for re-delivery into established pipeline markets. During 2012, average throughput on these gathering systems was 0.031 billion cubic feet per day.

The Company competes with Energy Transfer Partners, Crosstex Energy, Crestwood Midstream Partners, Freedom Pipeline, Peregrine Pipeline, XTO Energy, EOG Resources, DFW Mid-Stream, Enbridge Energy Partners, DCP Midstream, Enterprise Products Partners Inc., Regency Energy Partners, Texstar Midstream Operating, West Texas Gas Inc., TGGT Holdings, Kinderhawk Field Services, CenterPoint Field Services, Williams Partners, Penn Virginia Resource Partners, Caiman Energy, MarkWest Energy Partners, Kinder Morgan, Dominion Transmission (Blue Racer), Enogex and Atlas Pipeline Partners.

Best Insurance Companies To Invest In 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.

Top 10 Oil Stocks To Own For 2014: Southern Union Company(SUG)

Southern Union Company, together with its subsidiaries, engages in the gathering, processing, transportation, storage, and distribution of natural gas in the United States. It operates in three segments: Transportation and Storage, Gathering and Processing, and Distribution. The Transportation and Storage segment engages in the interstate transportation and storage of natural gas in the Midwest and from the Gulf Coast to Florida. It also provides liquefied natural gas (LNG) terminalling and regasification services. The Gathering and Processing segment involves in gathering, treating, processing, and redelivering natural gas and natural gas liquids (NGLs) in Texas and New Mexico. It operates a network of approximately 5,500 miles of natural gas and NGL pipelines, 4 cryogenic processing plants with a combined capacity of 415 MMcf/d, and 5 natural gas treating plants with a combined capacity of 585 MMcf/d. The Distribution segment engages in the local distribution of natural gas in Missouri and Massachusetts. This segment serves residential, commercial, and industrial customers through local distribution systems. The company was founded in 1932 and is based in Houston, Texas.

Top 10 Oil Stocks To Own For 2014: Noble Corp (NE)

Noble Corporation is an offshore drilling contractor for the oil and gas industry. The Company performs contract drilling services with its fleet of 79 mobile offshore drilling units and one floating production storage and offloading unit (FPSO) located globally. As of December 31, 2011, its fleet consisted of 14 semisubmersibles, 14 drillships, 49 jackups and two submersibles. Its fleet includes 11 units under construction, which include five ultra-deepwater drillships, and six jackup rigs. As of February 15, 2012, approximately 84% of its fleet was located outside the United States in areas, which included Mexico, Brazil, the North Sea, the Mediterranean, West Africa, the Middle East, India and the Asian Pacific. During the year ended December 31, 2011, it completed construction on the Noble Bully I, a drillship, owned through a joint venture with a subsidiary of Royal Dutch Shell plc; completed construction on the Noble Bully II, a drillship, and it completed construction of Globetrotter-class drillship. As of February 15, 2012, it had 10 rigs under contract in Mexico with Pemex Exploracion y Produccion (Pemex).

During 2011, the Company conducted offshore contract drilling operations, which accounted for over 98% of its operating revenues. It conducts its contract drilling operations in the United States Gulf of Mexico, Mexico, Brazil, the North Sea, the Mediterranean, West Africa, the Middle East, India and the Asian Pacific. During 2011, revenues from Shell and its affiliates accounted for approximately 24% of its total operating revenues. During 2011, revenues from Petroleo Brasileiro S.A. (Petrobras) accounted for approximately 18% and 19% of its total operating revenues. Revenues from Pemex accounted for approximately 15%, 20% and 23% of its total operating revenues.

Semisubmersibles

Semisubmersibles are floating platforms which, by means of a water ballasting system, can be submerged to a predetermined depth so that a substantial portion of the hull is b! elow the water surface during drilling operations. As of December 31, 2011, the semisubmersible fleet consisted of 14 units, including five Noble EVA-4000 semisubmersibles; three Friede & Goldman 9500 Enhanced Pacesetter semisubmersibles; two Pentagone 85 semisubmersibles; two Bingo 9000 design unit submersibles; one Aker H-3 Twin Hull S1289 Column semisubmersible, and one Offshore Co. SCP III Mark 2 semisubmersible.

Drillships

The Company�� drillships are self-propelled vessels. These units maintain their position over the well through the use of either a fixed mooring system or a computer controlled dynamic positioning system. Its drillships are capable of drilling in water depths from 1,000 to 12,000 feet. The maximum drilling depth of its drillships ranges from 20,000 feet to 40,000 feet. As of December 31, 2011, the drillship fleet consisted of 14 units, including four drillships under construction with Hyundai Heavy Industries Co. Ltd. (HHI); three Gusto Engineering Pelican Class drillships; two Bully-class drillships to be operated by it through a 50% joint venture with a subsidiary of Shell; one dynamically positioned Globetrotter-class drillship that left the shipyard during the fourth quarter of 2011; one Globetrotter-class drillship under construction; one moored Sonat Discoverer Class drillship capable of drilling in Arctic environments; one NAM Nedlloyd-C drillship, and one moored conversion class drillship.

Jackups

As of December 31, 2011, the Company had 49 jackups in its fleet, including six jackups under construction. The rig hull includes the drilling rig, jacking system, crew quarters, loading and unloading facilities, storage areas for bulk and liquid materials, helicopter landing deck and other related equipment. All of its jackups are independent leg and cantilevered. Its jackups are capable of drilling to a maximum depth of 30,000 feet in water depths up to 400 feet.

Submersibles

The Company has two su! bmersible! s in the fleet, which are cold-stacked. Submersibles are mobile drilling platforms, which are towed to the drill site and submerged to drilling position by flooding the lower hull until it rests on the sea floor, with the upper deck above the water surface. Its submersibles are capable of drilling to a depth of 25,000 feet in water depths up to 70 feet.

Advisors' Opinion:
  • [By Michael Flannelly]

    Bernstein analysts downgraded drilling company Noble Corporation (NE) on Friday, as they believe the current industry cycle is likely beginning to end.

    The analysts downgraded NE from “Outperform” to “Market Perform” and see shares reaching $41. This price target suggests a slight upside to the stock’s Thursday closing price of $39.34.

    Noble shares were down 14 cents, or 0.36%, during pre-market trading on Friday. The stock is up 12.98% year-to-date.

  • [By Shauna O'Brien]

    On Tuesday, UBS reported that it has raised its estimates on offshore drilling contractor Noble Corporation (NE).

    The firm has increased 2014 estimates on NE due to its five new jackup contracts. UBS currently has a $41 price target on NE. This price target suggests a 4% increase from the stock’s current price of $39.35.

    Noble Corporation shares were mostly flat during pre-market trading Tuesday. The stock is up 13% YTD.

Top 10 Oil Stocks To Own For 2014: ConocoPhillips(COP)

ConocoPhillips operates as an integrated energy company worldwide. The company?s Exploration and Production (E&P) segment explores for, produces, transports, and markets crude oil, bitumen, natural gas, liquefied natural gas, and natural gas liquids. Its Midstream segment gathers, processes, and markets natural gas; and fractionates and markets natural gas liquids in the United States and Trinidad. The company?s Refining and Marketing (R&M) segment purchases, refines, markets, and transports crude oil and petroleum products, such as gasolines, distillates, and aviation fuels. Its Chemicals segment manufactures and markets petrochemicals and plastics. This segment offers olefins and polyolefins, including ethylene, propylene, and other olefin products; aromatics products, such as benzene, styrene, paraxylene, and cyclohexane, as well as polystyrene and styrene-butadiene copolymers; and various specialty chemical products comprising organosulfur chemicals, solvents, catalyst s, drilling chemicals, mining chemicals, and engineering plastics and compounds. The company?s Emerging Businesses segment develops new technologies and businesses. It focuses on power generation; and technologies related to conventional and nonconventional hydrocarbon recovery, refining, alternative energy, biofuels, and the environment. This segment also offers E-Gas, a gasification technology producing high-value synthetic gas. ConocoPhillips was founded in 1917 and is based in Houston, Texas.

Top 10 Oil Stocks To Own For 2014: New Concept Energy Inc (GBR)

New Concept Energy, Inc. (New Concept), incorporated on May 30, 1991 in, owns and operates oil and gas wells in Ohio and West Virginia. The Company, through its wholly owned subsidiaries Mountaineer State Energy, Inc. and Mountaineer State Operations, LLC. operates oil and gas wells and mineral leases in Athens and Meigs Counties in Ohio and in Calhoun, Jackson and Roane Counties in West Virginia. As of March 30, 2012, the Company had 159 producing gas wells, 27 non-producing wells and related equipment and mineral leases covering approximately 20,000 acres. The Company operates in two primary business segments: oil and gas operations and retirement facilities.

During the year ended December 31, 2011, the Company had drilled eight wells. New Concept focuses on North American onshore oil and natural gas drilling and exploration. The Company's properties are concentrated in the Appalachian Basin, Fort Worth Basin, and the Arkoma Basin. The Company leases and operates Pacific Pointe Retirement Inn (Pacific Pointe) in King City, Oregon. Pacific Pointe has a capacity of 114 residents and provides community living with basic services, such as meals, housekeeping, laundry, 24/7 staffing, transportation and social and recreational activities.

Top 10 Oil Stocks To Own For 2014: Nexen Inc.(NXY)

Nexen Inc. operates as an independent energy company worldwide. The company?s Conventional Oil and Gas segment explores for, develops, and produces crude oil and natural gas from conventional sources. This segment operates in the United Kingdom, Canada and the United States, and offshore West Africa, Colombia, and Yemen. Nexen?s Oil Sands segment develops and produces synthetic crude oil from the Athabasca oil sands in northern Alberta. The company?s Shale Gas segment explores for and produces unconventional gas from shale formations in northeastern British Columbia. Nexen Inc. was founded in 1971 and is headquartered in Calgary, Canada.

Top 10 Oil Stocks To Own For 2014: Encana Corporation(ECA)

Encana Corporation and its subsidiaries engage in the exploration for, development, production, and marketing of natural gas, oil, and natural gas liquids. The company owns interests in resource plays that primarily include the Greater Sierra, Cutbank Ridge, Bighorn, and Coalbed Methane resource plays located in British Columbia and Alberta, as well as the Deep Panuke natural gas project offshore Nova Scotia in Canada. It also holds interests in resource plays comprising the Jonah in southwest Wyoming, Piceance in northwest Colorado, Haynesville in Louisiana, and Texas resource play, including east Texas and north Texas. The company serves primarily local distribution companies, industrials, energy marketing companies, and other producers. Encana Corporation was founded in 1971 and is headquartered in Calgary, Canada.

Top 10 Oil Stocks To Own For 2014: 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.