Saturday, March 24, 2012

Obama Backs Probe of Florida Teen's Death

WASHINGTON—President Barack Obama, speaking in unusually personal terms, weighed in on the recent killing of an unarmed black teenager, a rare moment of engagement by the president on a racially charged issue.

Thousands gathered in Washington D.C. to call for an arrest in the shooting death of a black Florida teenager. (Video: Reuters/Photo: AP)

Mr. Obama, speaking for the first time about the death of 17-year-old Trayvon Martin, said he welcomed federal and state investigations into the shooting. Mr. Martin was shot last month in the Orlando, Fla., suburb of Sanford, by a neighborhood-watch volunteer.

"When I think about this boy, I think about my own kids," the president said Friday, responding to a question. "You know, if I had a son, he'd look like Trayvon."

President Barack Obama on Friday called for a full investigation into the shooting of an unarmed African-American teenager in Florida, saying the U.S. needs to do some "soul searching" to determine what led to his death. Emily Steel has more on Mean Street. Photo: Reuters.

The killing has sparked protests in Florida and elsewhere, in part because the volunteer, who has said he was acting in self-defense, hasn't been arrested. The teen wasn't armed.

"I can only imagine what these parents are going through," Mr. Obama said in the Rose Garden. "I think all of us have to do some soul-searching to figure out how does something like this happen."

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Associated Press

Ifeoma Ike, a House Judiciary Committee worker, joins others in a 'Hoodies on the Hill' event on Capitol Hill Friday.

On Friday, students at several South Florida high schools staged walkouts and appealed for the arrest of George Zimmerman, the 28-year-old man who shot the teenager. Miami Heat star Dwyane Wade posted a photo of himself wearing a hooded sweatshirt on his Twitter and Facebook pages—a reference to the fact that the victim was wearing a "hoodie" when he was killed.

Mr. Obama's comments on Friday propelled attention on the case, which had already grown to become a national issue.

After Mr. Obama's remarks, leading Republicans, including the party's presidential candidates, also spoke out about the killing. Friday, Senate Minority Leader Mitch McConnell of Kentucky, the Senate's top Republican, called the shooting "an incredible tragedy of huge proportions." GOP presidential front-runner Mitt Romney called for a thorough investigation and said flatly, "This shouldn't have happened."

Former Pennsylvania Sen. Rick Santorum, another presidential candidate, went so far as to say the police were wrong not to arrest the alleged shooter and that law enforcement had made "horrible decisions" in handling the case.

Photos: Crowds Rally for Trayvon Martin

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Associated Press

Lakesha Hall, center, and her son, Calvin Simms, 12, right, attended a rally for Trayvon Martin at Fort Mellon Park in Sanford, Fla., Thursday.

The commentary Friday came as a stark contrast to the backlash Mr. Obama faced in 2009 when he sparked controversy by talking about another racially charged police incident, saying that the police officer who mistakenly arrested Harvard professor Henry Louis Gates Jr. had acted "stupidly."

Mr. Obama later backtracked and said his comments were poorly chosen. The incident culminated with a "beer summit" in the Rose Garden between the president and the parties involved.

The Martin case is under investigation by the Justice Department. On Thursday, Florida's Republican Gov. Rick Scott appointed a special prosecutor to take over the investigation from the Seminole County state attorney, who previously announced a grand jury would be convened April 10. Mr. Scott also announced the formation of a task force to review Florida's 2005 "Stand Your Ground" law, which allows citizens to respond with deadly force in the case of an attack, and which local police relied upon in handling this case.

Efforts to reach Mr. Zimmerman for comment were unsuccessful. In a recent letter to the Orlando Sentinel, his father wrote that his son was Hispanic and had black family members and friends. He also said: "At no time did George follow or confront Mr. Martin."

According to 911-call records, Mr. Zimmerman had been asked by a dispatcher if he was following the youth, and Mr. Zimmerman responded yes. The 911 dispatcher responded in return that Mr. Zimmerman didn't need to do that.

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Bloomberg News

President Obama speaks for the first time about the killing.

Earlier this week, White House Press Secretary Jay Carney declined to comment on the case, calling it a "local law enforcement matter." Friday, he said the president had prepared for the question in case he was asked in media interviews.

Mr. Obama often ignores shouted questions asked at unrelated announcements, but chose to respond this time. Exactly why he did, White House officials didn't make clear, beyond saying he was moved as a parent.

The criticism of Mr. Obama over the Gates incident was driven in part by outrage from police officers and supporters. James Preston, president of the Florida State Lodge Fraternal Order of Police, a police union, remembers being upset with the president's comments at the time.

Friday, he said he found himself in rare agreement with Mr. Obama's take on the situation.

Related Video

Social media has put the spotlight on the story Trayvon Martin, an unarme! d Africa n-American teenager who was shot to death last month by a neighborhood watch captain in Florida. Emily Steel reports on digits. Photo: Associated Press.

Hundreds rally in New York to demand the arrest of a neighborhood watch volunteer accused of killing a teenager in Florida. (Video: Reuters/Photo: AP)

"There's a learning curve there and I think he's probably gotten some better advice about how to handle those situations," said Mr. Preston, a retired Tampa officer and a Republican.

Unlike in 2009, Mr. Obama didn't pass judgment on law-enforcement officials involved. And instead of talking about case details, he spoke about his feelings as a father, and implicitly, as an African-American.

The president has invoked his family before in discussing controversial issues, most recently when he explained why he called Sandra Fluke, a law student denigrated by radio personality Rush Limbaugh during a debate over contraception coverage.

He said he thought about how he would want his daughters to be treated if they spoke their minds in public.

Race is a touchier topic for the president. Mr. Obama has rarely been eager to identify himself as a black candidate or president. On rare occasions, he has addressed the matter—notably during the controversy over his former minister Rev. Jeremiah Wright—but usually casts the issue in a broader context of American history, said Mary Frances Berry, who served on the U.S. Commission for Civil Rights from 1980 to 2004.

"He wants to be careful so that people who are uncomfortable with the first African-American president don't believe he's only going to pay attention to African-Americans," she said.

Write to ! Laura Meckler at laura.meckler@wsj.com and Arian Campo-Flores at arian.campo-flores@wsj.com

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Apple Topples HP for Lead in Q4 ‘Client PC’ Sales, Says Canalys

Market research firm Canalys this afternoon offers its update on the PC market in Q4, in which the firm groups together tablet computers such as Apple’s (AAPL) iPad among “client PCs,” as they term it.

That’s a significantly different approach from the standard measure of personal computer shipments used by Gartner and IDC and other research firms, in which only desktops and laptops count, as you can see from the most recent Gartner PC report, for example.

Counting in that modified way, Canalys crowns Apple the “leading worldwide client PC vendor,” garnering 17% of the market, up 6 percentage points, year over year. The firm says that Hewlett-Packard (HPQ), formerly the top PC vendor by units, fell to second place and is battling hard with Lenovo, the only vendor aside from Apple to gain share. Dell (DELL) and Acer (2353TW) took fourth and fifth places, the firm believes, both losing share.

The report includes not just the iPad, but also what the firm refers to as the greater “pad” product category, in which other tablets, such as Research in Motion’s (RIMM) PlayBook tablet is included, Amazon.com‘s (AMZN) “Kindle Fire” tablet, but also e-book readers such as the other Amazon Kindle devices, and Barnes & Noble’s (BKS) “Nook” series. There are, however, no numbers listed for each vendor in the pad category, though it is noted that pads made up 22% of total PC shipments in the quarter.

The vague release from Canalys is woefully lacking in detail and numbers, citing 120 million worth of Q4 client PC shipments, with Apple having 16% in total. I have a request in to Canalys for further detail and will offer that when I get it.

Update: It appears that more data will be forthcoming from Canalys, so stand by. In a phone conversation this afternoon, Canalys’s principal analyst for mobile devices, Chris Jones, acknowledged that grouping desktops and laptops with tablets and other devices is controversial. However, as he explained it to me, “We do see it as one big market of mobile computing. These tablets are not just about consumption any more, people can do much more with them than when they first appeared. The application breadth has increased and they are being used more and more as business tools.”

Update 2: Canalys offers the following table of volume and share data for the vendors. The firm declined to provide greater detail on the “pad” market, including tablets and e-book readers. Note the comparison to the most recent Gartner report.

Research firm Canalys reports that Apple toppled Hewlett-Packard in the December quarter of 2011 in client PC sales when counting not just desktops and laptops but also tablet computers and similar mobile devices.
The definition of the PC market in the latest Gartner report excludes tablets and other devices, counting only desktops and laptops.

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From AAO Weblog

A few years ago, the SEC used to have �We are the investor�s advocate� plastered in various prominent spots of its website – like the home page, for instance.

No more. The SEC has become kinder and gentler, it seems, with bigger interests than just advocating for investors. I mentioned Commissioner Paul Atkins� speech last week, the one where he continued to bash Section 404 costs while praising efforts at making Auditing Standard 2 less onerous. I forgot to mention this snippet:

�The SEC is very concerned about maintaining our capital markets as an attractive place for investors to invest. In fact, we are charged by Congress to look after not only investor protection, but also competition and efficiency of the financial marketplace and ease of capital formation. We must ensure the integrity of our markets so that investors have confidence that they will be treated fairly. At the same time, our regulations must not price those very investors out of our markets through burdensome regulations or eat up the fruits of their investments through nonsensical mandates.�

�Charged by Congress to look after not only investor protection but also competition and efficiency of the financial marketplace and ease of capital formation?� Well, yes. And he�s right; it�s in black-and-white in the 1933 Act. But the 1933 Act presents it in a slightly different tone:

�Whenever pursuant to this title the Commission is engaged in rulemaking and is required to consider or determine whether an action is necessary or appropriate in the public interest, the Commission shall also consider, in addition to the protection of investors, whether the action will promote efficiency, competition, and capital formation.� [Emphasis added.]

Notice what comes first: the protection of investors. The rest is secondary. Commissioner Atkins� statement sounds like he�s channeling the Bloomberg/Schumer report or the Paulson Committee report ! more tha n echoing William O. Douglas. This reference to Douglas comes from a 1995 speech by Arthur Levitt:

�One of my predecessors, later Supreme Court Justice, William O. Douglas described our special role in this way: �We�ve got brokers� advocates; we�ve got exchange advocates; we�ve got investment banker advocates; and we are the INVESTOR�S advocate.�"

Maybe the pendulum hasn�t swung completely the opposite way from the reform era after Enron – but it feels like it�s almost there. I offer this list of �Top Ten Signs the Pendulum Has Swung� compiled by David Katz at CFO.com so you can at least get a good laugh out of the current deregulatory folly.

http://www.accountingobserver.com/blog/

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The US Energy Information Administration has released its latest Short-Term Energy Outlook, and it does little to raise the dim economic prospects for the rest of 2010 and 2011.

The EIA has lowered its projected real US GDP growth estimate from 3.1% and 2.7% for 2010 and 2011, respectively, to 2.8% and 2.3%. The agency also lowered its global GDP growth estimate from 3.6% to 3.3%.
Spot prices for WTI are expected to remain at $77/barrel through the fourth quarter of 2010 and rise to an average of $82/barrel in 2011. Regular-grade gasoline prices are expected to average $2.69/gallon for the second half of 2010, down $0.07 from the first half of the year. Higher crude prices in 2011 will raise pump prices to $2.90/gallon.

Total global oil production for 2010 is expected reach 85.97 million b/d, up about 1.6 million b/d from 2009. Production is expected to reach 87.01 million b/d in 2011. Consumption in 2010 is expected to average 85.95 million b/d, about 20,000 b/d below production. Consumption in 2011 is expected to surpass production by about 35,000 b/d. That is what is driving the per barrel price up in 2011.
Energy analysis firm Platts today published its estimated OPEC production figures for August. As a group, the cartel produced an estimated 29.11 million b/d, down from 29.22 million b/d estimated in July. High inventory levels and shrinking refining margins are the likely culprits for the reduced production according to Platts.

Natural gas production is expected to reach 61.2 billion cubic feet/day in 2010, declining to 60 billion cubic feet/day, primarily due to low prices for gas which will stifle new drilling. Natural gas consumption in 2010 will rise 4% above 2009 levels, to 65 billion cubic feet/day and remain relatively flat through 2011. Pipeline imports are expected to reach 9.2 billion cubic feet/day in 2010, and LNG imports are expected to total 1.25 billion cubic feet/day. Again, low prices have discouraged imports and! there i s plenty of domestic natural gas to meet demand.
Natural gas spot prices will average $4.54/million BTUs in 2010, up $0.60/million BTUs from a year ago, but down -$0.15/million BTUs from the EIA’s earlier estimates.

Electricity generation from coal rose 6.1% in the first half of 2010 and electricity generated from natural gas rose 4.7%. The projected growth for electricity sales to the industrial sector are expected to rise 6% in 2010 before slowing to a growth rate of just 0.2% in 2011.
The close tie between energy use and economic growth sometimes makes it difficult to tell the cart and the horse. The most sobering take-away from these numbers is that if the economy were getting better, would global energy supply be able to keep up? It could be some time before we find out the answer to that question.

Paul Ausick

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Brazilian stocks edge up ahead of holiday break

LOS ANGELES (MarketWatch) � Brazilian stocks edged higher in seesaw trading Friday, with a report of slowing local inflation and reports that financial aid appears to be in reach for debt-strapped Greece arriving ahead of a holiday break for Latin America�s largest economy.

Brazil�s Ibovespa BR:BVSP �rose 0.1% to 66,203.50, fighting back from mild losses.

Declines in home building stocks in part held gains in check. MRV Engenharia BR:MRVE3 �logged the worst performance as its shares slumped 5.7%. Also tugging at the index were preferred shares of Vale BR:VALE5 VALE , with the miner and market heavyweight down 0.9%.

/quotes/zigman/1467794 BVSP 65,812.95, -15.24, -0.02%

But shares of grocer Companhia Brasileira de Distribuicao CBD �shined, rising 5.7% after the company late Thursday said fourth-quarter earnings climbed more than 40% to 361! million reals ($210.6 million) on a surge in sales to 15.1 billion reals from a year ago.

The Ibovespa recorded a weekly gain of 3.5%, erasing last week�s fall of 1.9%. The index has risen 16.7% so far this year following an 18.1% slide in 2011.

Brazilian stocks opened modestly higher Friday as Greece � whose debt woes have been an ongoing source of pressure on equities worldwide � appeared closer to closing a crucial gap in funding.

Reaching that goal through a deal with European officials could allow the Greek government to receive a new round of bailout money. Euro-zone ministers were set to meet on Monday, but investors in Brazilian stocks moved with caution as previous efforts to aid Greece have hit roadblocks. Read more on Greece.

On Wall Street, the S&P 500 Index SPX �rose 0.2% to 1,361.23. The Dow Jones Industrial Average DJIA �advanced 45 points, moving closer to the 13,000 level. Trading on Wall Street will be closed Monday for the Presidents Day holiday. Read about Friday's action in U.S. stocks.

Inflation slows

Ahead of Brazil�s trading break on Monday and Tuesday for the Carnival holiday, a mid-month reading of consumer prices met analyst expectations.

The IPCA-15 consumer price index through mid-February rose 0.53%, according to the IBGE statistics agency. The index through the same period in January grew 0.65%. The February reading was slower than the previous month�s in part as prices for food and beverages rose 0.29% compared with a previous increase of 1.25%! .

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U.S. week ahead: Greece, Jobs

In a short trading week, first-time jobless claims, the Nasdaq's drive toward 3,000 and the Greek debt deal will get attention. MarketWatch's Rex Crum reports.

Over a 12-month period, the inflation rate dropped to 5.98%, the lowest year-over-year rate since December 2010. The inflation rate on 12-month basis through January was 6.44%.

The latest decline puts the annual inflation rate below the 6.5% upper limit of the bank�s tolerance range. The target is 4.5%.

�Brazil policy-makers are intent on boosting growth in 2012, with more easing seemingly warranted by falling inflation,� Win Thin, global head of emerging markets strategy at Brown Brothers Harriman, wrote Friday.

The central bank is expected to cut the key rate to 10% from 10.5% when it releases its decision March 7, he noted, with the bank likely to follow up with a cut to 9.5% in April.

�After that, further cuts are likely to depend on how the data respond to the previous rate cuts,� Thin said.

Meanwhile, the rate of unemployment in Brazil fell to 5.5% in January, according to a separate report from IBGE, lower than the year-ago reading of 6.1%. The January rate was the lowest for the month since the series began in 2002.

Brazil�s currency USDBRL �traded at 1.714 reals per U.S. dollar, up from 1.727 reals in the previous session.

In Mexico, the IPC equity index! MX:IPC �reversed course, ending down 0.8% at 37,914.70. The move pushed the index lower by 0.6% for the week. Chile�s IPSA CL:IPSA �closed Friday�s session up 1.2% at 4,545.90 and logged a weekly advance of 3.1%.

Argentina�s Merval AR:MERV �gained 1.1% to 2,798.83 on Friday to lock in a gain of 2.8% for the week. Trading in Argentina will also be closed Monday and Tuesday for Carnival.

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Frontiers Awards Winners Announced

The Financial Planning Association and Janus Capital Group Inc. have announced the winners of the 2009 Financial Frontiers Awards. The awards recognize outstanding research papers that present new ideas and practical solutions for financial planners and their clients in two categories: financial techniques and financial concepts.

"Purchase a Time-Share Interval or Rent Hotel Rooms? Preparing for a Discussion with Clients," by Stephen J. Larson, PhD, CFP and Robert B. Larson, JD, took first place in the techniques category. The paper focuses on providing financial planners with the information they need to have time-share ownership discussions with their clients, comparing the pros and cons of time-share interval ownership with renting vacation units, including risks, cash flows and legal issues associated with each. Although this is a common discussion topic among planners and their clients, the FPA and Janus noted in making the announcement that is the first formal literature on this topic presented to the financial planning community.

Stephen Larson is an associate professor of finance at Ramapo College of New Jersey and conducts research on personal finance, market overreaction and government contracts. Robert Larson graduated from the Hamline University School of Law in May 2009 and his research includes legal aspects of personal finance, estate planning for non-traditional couples, and government contracts.

The winning paper in the concepts category, "Constructing Core Portfolios for Chaotic Markets" by Paul D. Tomasula Jr., CLU, ChFC, proposes constructing portfolios using the full range of historical market movements. Typically, financial planning software based on Modern Portfolio Theory or Monte Carlo simulation groups the probabilities of market moves under the normal Gaussian distribution, or bell-shaped curve. In his paper, Tomasula, who is the principal of Ca pital Planners, Inc. in Bartlett, Illinois, recommends using software that uses the Cauchy-Lorentz distribution rather than the typical Gaussian distribution. He states in his paper although planners may have to sacrifice their favorite theories on how markets move, constructing robust portfolios may be simpler than trying to understand the markets.

Each research paper submitted for the Financial Frontiers Awards is evaluated by a panel of highly qualified judges assembled by FPA's Journal of Financial Planning from a pool of FPA members.

The 2009 Financial Frontiers Awards winners will present their papers on Tuesday, October 13 at FPA Anaheim 2009, the association's annual conference. More details on the published papers will be available in the November and December issues of the Journal of Financial Planning.

The Financial Frontiers Awards program began in 2005 to promote research that increases knowledge and advances the financial planning profession. The Awards are open to all financial planners, advisers, management and support staff at financial services institutions, regardless of the organization's size.

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Best Wall St. Stocks Today: ARRS,ASH,FCS,GME,ONNN,RTN,RVBD,VOD

These are the top pre-market analyst upgrades or positive calls from Wall Street which we have seen early this Wednesday morning:

Arris (ARRS) Started as Overweight at Thomas Weisel.
Ashland (ASH) Raised to Overweight at JPMorgan.
Fairchild Semi (FCS) Raised to Buy at UBS.
GameStop (GME) Started as Buy at Needham.
ON Semiconductor (ONNN) Raised to Buy at UBS.
Raytheon (RTN) Started as Outperform at Morgan Keegan.
Riverbed Technology (RVBD) Started as Overweight at Thomas Weisel.
Vodafone (VOD) Raised to Buy at Goldman Sachs.

JON C. OGG

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Fulsome Volume Stock at NASDAQ - BECN

Beacon Roofing Supply, Inc. (NASDAQ:BECN) witnessed volume of 2.52 million shares during last trade however it holds an average trading capacity of 558,146.00 shares. BECN last trade opened at $15.24 reached intraday low of $14.59 and went +3.17% up to close at $15.63.

BECN has a market capitalization $718.53 million and an enterprise value at $878.58 million. Trailing twelve months price to sales ratio of the stock was 0.43 while price to book ratio in most recent quarter was 1.49. In profitability ratios, net profit margin in past twelve months appeared at 2.23% whereas operating profit margin for the same period at 4.46%.

The company made a return on asset of 4.42% in past twelve months and return on equity of 8.07% for similar period. In the period of trailing 12 months it generated revenue amounted to $1.66 billion gaining $36.28 revenue per share. Its year over year, quarterly growth of revenue was 3.80%.

According to preceding quarter balance sheet results, the company had $178.42 million cash in hand making cash per share at 3.88. The total of $338.47 million debt was there putting a total debt to equity ratio 70.12. Moreover its current ratio according to same quarter results was 2.57 and book value per share was 10.51.

Looking at the trading information, the stock price history displayed that its S&P500 52 Week Change illustrated 8.22% where the stock current price exhibited down beat from its 50 day moving average price of $21.06 and remained below from its 200 Day Moving Average price of $20.80.

BECN holds 45.97 million outstanding shares with 45.14 million floating shares where insider possessed 1.20% and institutions kept 103.00%.

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Friday, March 23, 2012

RINO: Clean Up With This Chinese Environmental Company

RINO International Corporation (RINO:NASDAQ) provides environmental protection and remediation technologies for waste water treatment, desulphurization, and anti-oxidation solutions for the iron and steel industries in China. Economic development has created significant environmental concerns in China. Additionally, China is water deficient, having ¼ of the rest of the world’s per capita capacity. Environmental improvement is a major concern for China. The PRC’s new 5-year environmental plan includes $195 billion of spending in water waste management and $1 billion in desulphurization. These government expenditures combined with state environmental regulations for industry are the growth engine for RINO’s proprietary technologies.

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RINO is incredibly well run. Its 29% net margin has allowed the accumulation of $135 million cash with only $5 million in debt. This profitability is available to investors at only 7.6 times earnings and cash flow. In its short history on the NASDAQ, earnings have increased 161% despite revenues slowing from 119% growth to 38% (still no laggard!). Management has plenty of “skin in the game”, with ownership of 65% of the outstanding shares, so management’s interest is tied closely to the success of the company. With only a 10 million share float and an average daily trading volume of 1 million, any significant demand could make this a very valuable stock in a short period of time.  RINO plans to expand its industry exposure by adapting its desulphurization technology to metallurgy, electrical generation, and rubb! ish trea tment, while adapting its water waste technology to chemical and oil industry sludge and municipal waste.

RINO’s downsides are limited but unfortunately significant. Revenues are linked to the iron and steel industries. Its high temperature, anti-oxidation technology is further limited to only the rolled plate steel industry.  These industries are extremely fragmented in China and are dominated by small companies. In addition to environmental initiatives mentioned above, the PRC is also controlling pollution by forcing small producers to cease their operations or facilitate their merger to larger entities. This limits customers for RINO’s products. Although larger customers are perfect for cost effect implementation of RINO’s solutions, it has only identified 34 companies that meet these requirements. RINO only spends .1% of revenues for R&D and relies heavily on joint patents with the Chines Academy of Science. This seems inadequate for a 3 pony show in a very competitive environment. The 10 million float and short position shares available may limit maximum upside activity by limiting institutional investing.

This is a great investment. This value play in a boring, but growing industry would please both Warren Buffet and Peter Lynch. With the present float, I doubt this stock will retrace to its $56/share IPO position. If management continues its business model, follows through on its expansion plans, and the PRC follows through on its 5 year pollution plan, this stock is an easy double. If management halves its position, it’s a four bagger. I’m buying at $15/share.

If you'd like to receive further updates and any changes in o! ur opini ons of RINO be sure to Sign-Up for the SCN Newsletter today! It's FREE.

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Best Wall St. Stocks Today: APOL,COCO,DV,ESI,AT,EMC,FSLR,LSTR,MGM,SIRI,YHOO,ZAGG,AOL

Active traders and day traders have many stocks to choose from this Wednesday morning.� We are tracking news and moves in shares of Some of the most active stocks or largest moves seen in shares of Apollo Group Inc. (NASDAQ: APOL), Corinthian Colleges Inc. (NASDAQ: COCO), DeVry Inc. (NYSE: DV), and ITT Educational Services, Inc.(NYSE: ESI).� We are also tracking moves in Atlantic Power Corporation (NYSE: AT), EMC Corp. (NYSE: EMC), First Solar, Inc. (NASDAQ: FSLR), Landstar System Inc. (NASDAQ: LSTR), MGM Resorts International (NYSE: MGM), SIRIUS XM Radio Inc. (NASDAQ: SIRI), Yahoo! Inc. (NASDAQ: YHOO), and ZAGG Incorporated (NASDAQ: ZAGG).

Apollo Group Inc. (NASDAQ: APOL) beat earnings but looked like a disaster after earnings because of changes to the model and it withdrawing all guidance.� Shares have seen at least two downgrades so far.� Apollo shares are down even worse with a drop of 18% at $40.46; Corinthian Colleges Inc. (NASDAQ: COCO) is down almost 8% at $5.55; DeVry Inc. (NYSE: DV) is down 7.5% at $46.80; ITT Educational Services, Inc.(NYSE: ESI) is down 8.5% at $60.26.

Atlantic Power Corporation (NYSE: AT) is lower after it priced 5,245,000 common shares at a price of US$13.35 per share.� Shares are down only 0.35% at $13.45 and the stock has a 52-week range of $9.63 to $14.38.

EMC Corp. (NYSE: EMC) is rising on new Greenplum data analysis systems.� Shares are up 3.45 at $21.00 on almost 700,000 shares.

First Solar, Inc. (NASDAQ: FSLR) is rising after reporting that two new manufacturing plants are planned; shares are up 2.2% at $140.00.� Just yesterday we highlighted how the solar stock rally was starting to look stretched.

Landstar System Inc. (NASDAQ: LSTR) fell after reporting earnings as it will take an additional contingent price on its NLM acquisition despite revenue growth of 24%.� Shares are down 5.25 at $36.88 but volume is thin.

MGM Resorts International (NYSE: MGM) had a monster secondary yesterday and is seeing a slight bounce from the sell-! off afte r being defended: shares were raised to Outperform at BMO.� The casino shares are up 1.1% at $12.24 but that is on more than 200,000 shares and is on the heels of a drop from $13.61 to $12.10 on the secondary dilution.

Yahoo! Inc. (NASDAQ: YHOO) is surging on reports tha AOL Inc. (NYSE: AOL) and/or private equity buyers are lining up around the Internet property.� Yahoo! shares are up 14.5% at $17.46 after a strong Wednesday.� No real move has been seen in AOL this morning. Yahoo! has traded more than 13 million shares with about 45 minutes until the market opens.

SIRIUS XM Radio inc. (NASDAQ: SIRI) is up yet again after Moody’s raised its rating on a debt refinancing that priced very well for the company last night.� Shares are up 1.4% at $1.42 on over 1 million shares and the high of he year was put in yesterday at $1.44.

ZAGG Incorporated (NASDAQ: ZAGG) is surging after reporting that earnings will beat expectations.� Shares are up almost 30% at $6.65 versus a 52-week range of $1.90to $7.00.

You can join our free daily email distribution list to hear more about dividend trends, analyst upgrades and downgrades, top day trader and active trader alerts, news on Buffett and other investment gurus, IPOs, secondary offerings, private equity, and more.

JON C. OGG

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Top 10 Stocks To Invest In February 2012

Maybe it was because Seeking Alpha did not carry my annual list of 10 Clean Energy Stocks for 2012 this year, but no one seems to have noticed that there were actually 11 stocks in the list.  Call it the Spinal Tap of top-ten lists.

If anyone did notice the extra pick, they didn't leave a comment.  What happened was that I have two number 8 stocks, but there is enough text between them that neither I nor most of my readers could see both 8's at once on the same screen.  Oops!

I had 10 originally, but my messed up numbering led me to think I did not have enough, and so I went back and added Honeywell (HON) at the last minute, choosing to play it safe with a large cap energy efficiency company.  So far this year, Honeywell has produced the expected safe results, but because clean energy stocks (especially solar) have been on a tear,  Honeywell's 10.5% return has dragged down the portfolio's average a little.  But who's complaining?

Top 10 Stocks To Invest In February 2012:Richardson Electronics Ltd. (RELL)

 Richardson Electronics, Ltd. engages in the provision of engineered solutions; and distribution of electronic components to the electron device and display systems markets. Its Electron Device Group provides engineered solutions, and distributes electronic components to customers in various markets, such as steel, automotive, textile, plastics, semiconductor manufacturing, and broadcast industries. It designs solutions for various applications comprising industrial heating, laser technology, semiconductor manufacturing equipment, radar, and welding. This division also provides replacement products for systems using electron tubes, as well as offer design and assembly services for new systems employing semiconductor manufacturing equipment. The company?s Canvys division provides integrated display products, workstations, and value-added services to the healthcare, industrial and medical original equipment manufacturers, and digital signage markets. Its display solutions consist of touch screens, protective panels, custom enclosures, specialized cabinet finishes, application specific software packages, and display products. This division also partners with hardware vendors and offers liquid crystal displays, mounting devices, and customized computing platforms. Richardson Electronics offers its solutions in North America, the Asia Pacific, Europe, and Latin America. The company was founded in 1947 and is headquartered in LaFox, Illinois.

Top 10 Stocks To Invest In February 2012:Mitsubishi UFJ Financial Group Inc (MTU)

 Mitsubishi UFJ Financial Group, Inc., together with its subsidiaries, provides various financial services to individual and corporate customers in Japan and internationally. Its Integrated Retail Banking Business Group segment comprises commercial banking, trust banking, and securities businesses. This segment offers a range of bank deposit products comprising a non-interest-bearing deposit account that is redeemable on demand; asset management and asset administration services, including savings instruments, such as current accounts, ordinary deposits, time deposits, deposits at notice, and other deposit facilities; trust products consisting of loan trusts and money trusts; and other investment products, such as investment trusts, performance-based money trusts, and foreign currency deposits. It also provides insurance products consisting of investment-type individual annuities, foreign currency-denominated insurance annuities, and yen-denominated fixed-amount annuity insurance; financial products intermediation services; and housing loans, card loans, and credit cards. The company?s Integrated Corporate Banking Business Group segment provides commercial banking, corporate and investment banking, transaction banking, trust banking, and securities services for large corporations, financial institutions, and sovereign and multinational organizations. Its Integrated Trust Assets Business Group segment offers asset management and administration services for products, such as pension trusts and security trusts. This segment provides a range of services to corporate and pension funds, including pension fund management and administration, advice on pension schemes, and payment of benefits to scheme members. The company?s Global Markets segment conducts asset liability management and liquidity management, and provides money markets, foreign exchange operations, and securities investment services. The company was founded in 1880 and is headquartered in Tokyo, Japan.

Top 10 Stocks To Invest In February 2012:Premier Financial Bancorp Inc. (PFBI)

 Premier Financial Bancorp, Inc., a multi-bank holding company, provides community banking services to individuals and small-to-medium sized businesses. Its deposit product line includes checking accounts, negotiable order of withdrawal accounts, savings accounts, money market accounts, club accounts, individual retirement accounts, certificates of deposit, and overdraft protection. The company?s loan product portfolio comprises loans for purchasing personal residences or loans for commercial or consumer purposes secured by residential mortgages; residential mortgage loans; automobile and personal loans, including unsecured lines of credit; commercial loans secured by business assets, such as real estate, equipment, inventory, and accounts receivable; unsecured commercial loans; commercial real estate development loans; financial and agricultural loans; and real estate construction loans. It also offers depository and funds transfer services; collections; safe deposit boxes; cash management services; automated teller machines; and bill payment, telephone banking, and Internet banking services. As of March 15, 2011, Premier Financial Bancorp operated 8 banking offices in Kentucky, 5 banking offices in Ohio, 14 banking offices in West Virginia, 1 banking office in Maryland, 2 banking offices in Virginia, and 5 banking offices in Washington, District of Columbia. The company was founded in 1991 and is headquartered in Huntington, West Virginia.

Top 10 Stocks To Invest In February 2012:TransAlta Corporation (TAC)

 TransAlta Corporation operates as a non-regulated electricity generation and energy marketing company. The company engages in the production and sale of electric energy through its diversified portfolio of facilities fuelled by coal, natural gas, hydroelectric, wind, geothermal, and biomass resources in Canada, the United States, and Australia. It has an aggregate net ownership interest of approximately 8,025 megawatts of generating capacity in operation. The company was founded in 1911 and is based in Calgary, Canada.

Top 10 Stocks To Invest In February 2012:Haynes International Inc. (HAYN)

 Haynes International Inc. develops, manufactures, markets, and distributes high-performance nickel-and cobalt-based alloys in sheet, coil, and plate forms for use in the various industries worldwide. The company's products consist of high-temperature resistant alloys (HTA) and corrosion resistant alloys (CRA). Its HTA products are used in the manufacture of jet engines for the aerospace market; gas turbine engines for use in applications, such as naval and commercial vessels, electric power generation, power sources for offshore drilling platforms, gas pipeline booster stations, and emergency standby power stations; and industrial heating equipment. The company's CRA products are used in various applications, including chemical processing, power plant emissions control, hazardous waste treatment, sour gas production, and pharmaceutical vessels. Its products also have applications in flue-gas desulphurization, oil and gas, waste incineration, automotive, instrumentation, biopharmaceuticals, solar, and nuclear fuel industries. The company also produces its products as seamless and welded tubulars, as well as in slab, bar, billet, and wire forms. Haynes International sells its products through its direct sales organization, as well as through a network of independent distributors and sales agents. The company was founded in 1912 and is headquartered in Kokomo, Indiana.

Top 10 Stocks To Invest In February 2012:Fossil Inc. (FOSL)

 Fossil, Inc. designs, develops, markets, and distributes fashion accessories worldwide. It offers a line of fashion watches under its proprietary brands, such as FOSSIL, MICHELE, RELIC, and ZODIAC; and through licensed brands, including ADIDAS, BURBERRY, DIESEL, DKNY, EMPORIO ARMANI, MARC BY MARC JACOBS, and MICHAEL KORS. The company designs, markets, and arranges for the manufacture of watches and accessories on behalf of certain mass market retailers, companies, and organizations as private label products or as premium and incentive items for use in various corporate events. It also provides various fashion accessories for men and women, including handbags, belts, small leather goods, jewelry, and sunglasses through company owned retail stores, department stores, and specialty retail stores, as well as over the Internet and through catalogs. In addition, the company sells a line of soft accessories, such as hats, gloves, and scarves, as well as a handbag collection. Further, it offers apparel comprising jeans, outerwear, fashion tops and bottoms, and tee shirts for men and women through company-owned stores, as well as over the Internet and through catalogs. Additionally, the company provides footwear products, including sport court sneakers, authentic casuals, dress classics, and boots for men, as well as fashionable flats, heels, wedges, and boots for women. Fossil, Inc., through a license agreement with the Safilo Group, manufactures, markets, and sells optical frames under the FOSSIL and RELIC brand names in the United States and Canada. As of August 9, 2011, it had approximately 360 company-owned and operated retail stores. The company was founded in 1984 and is headquartered in Richardson, Texas.

Advisors' Opinion:

  • By iStockAnalyst At 2011-9-24

    Since its inception in 1984, Fossil Inc. (FOSL) has grown into a diversified company offering an extensive line of fashion watches and accessories, including sunglasses, small leather goods, belts, ! and hand bags, principally under the Fossil and Relic brand names; Fossil brand apparel and jewelry; and watches and jewelry bearing the brand names of certain internationally known fashion companies pursuant to license agreements. FOSL also designs, markets and arranges for the manufacture of watches on behalf of certain companies and organizations as private label products or as premium and incentive items for use in various events. In 2010, sales of watches accounted for about 70 percent of net sales (66 percent in 2009 and 67 percent in 2008), and accessory lines 30 percent (34 percent in 2009 and 33 percent in 2008). Licensed brand products amounted to 39 percent of 2010 sales (34 percent in 2009).

    I view FOSL's product and geographic diversification as competitive strengths in a tough macro-economic environment. I expect innovative styles across market segments and increasing Fossil brand awareness driven by global retail expansion to support continued sales momentum in watches and accessories through 2012. I also look for higher prices on new products to support gross margin recovery next year.

Top 10 Stocks To Invest In February 2012:Transportadora De Gas Sa Ord B (TGS)

 Transportadora de Gas Del Sur S.A. engages in the transportation of natural gas, as well as production and commercialization of natural gas liquids primarily in Argentina. It operates approximately 8627 km long pipeline system. The company transports its natural gas to distribution companies, industries, traders, producers, and power plant operators. The company?s production and commercialization activities are conducted at the Cerri Complex located near Bahia Blanca. Its natural gas liquid products comprise ethane, propane, butane, and natural gasoline. It also provides midstream services, which consist of gas treatment, gas compression, and wellhead gas gathering services; removal services for impurities from the natural gas stream; and pipeline construction, operation, and maintenance services. In addition, the company offers telecommunication services for telephone operators and other corporate users. Its telecommunication network includes a microwave's digital system with synchronous digital hierarchy technology. The company was founded in 1992 and is based in Buenos Aires, Argentina. Transportadora de Gas Del Sur S.A. is a subsidiary of Compania de Inversiones de Energia S.A.

Top 10 Stocks To Invest In February 2012:Alpha Pro Tech Ltd. (APT)

 Alpha Pro Tech, Ltd. engages in the development, manufacture, and marketing of disposable protective apparel, building supply, and infection control products principally in the United States. Its disposable protective apparel products include shoecovers, bouffant caps, gowns, coveralls, lab coats, and frocks; and building supply products comprise construction weatherization products, such as housewrap and synthetic roof underlayment products. The company?s infection control products consist of face masks, eye shields, and medical bed pads. It offers its disposable protective apparel products, face masks, and eye shields to the industrial, cleanroom, and medical and dental markets; and construction weatherization products to construction supply and roofing distributors. The company sells its products through a network of purchasing groups, national distributors, local distributors, and independent sales representatives, as well as through its own sales and marketing force under the Alpha Pro Tech brand name, as well as under private label. Alpha Pro Tech, Ltd. was founded in 1983 and is based in Markham, Canada.

Top 10 Stocks To Invest In February 2012:ANSYS Inc. (ANSS)

 ANSYS, Inc. engages in the development and marketing of engineering simulation software and services used by engineers and designers in aerospace, automotive, manufacturing, electronics, biomedical, energy, and defense industries. Its products include ANSYS Workbench, which is the framework upon the company?s suite of engineering simulation technology is built; Multiphysics that combines solver technology for various physics disciplines; Structural Mechanics, which offers simulation tools for product design and optimization; Fluid Dynamics that provides modeling fluid flow and other related physical phenomena; and Explicit Dynamics, which simulates short, high deformation, large strain, fracture, or complete material failure applications. The company?s products also comprise Electromagnetics, which provides electromagnetic field simulation software used by electrical engineers to design electronic and electromechanical products; System and Circuit Simulation, a technology that offers schematic capture, layout, and design management capabilities, which allow engineers to simulate high-speed and high-power electronic circuits; and ANSYS Engineering Knowledge Manager, a solution for simulation-based process and data management. In addition, it offers Academic that provides a portfolio of academic products based on associate, research, and teaching; and High-Performance Computing (HPC), which delivers cross-physics parallel processing capability for the company?s simulation software by supporting structural, fluids, thermal, and electromagnetic simulations in a single HPC solution. Further, the company provides geometry handling solutions for engineering simulation. ANSYS, Inc. distributes its products through a network of independent channel partners, as well as through its direct sales offices primarily in the United States, Japan, Germany, Canada, and other European countries. The company was founded in 1970 and is headquartered in Canonsburg, Pennsylvania.

Top 10 Stocks To Invest In February 2012:Micron Technology Inc. (MU)

 Micron Technology, Inc., together with its subsidiaries, engages in the manufacture and marketing of semiconductor devices worldwide. Its products include dynamic random access memory (DRAM) products that provide data storage and retrieval, which include DDR2 and DDR3; and other specialty DRAM memory products, including DDR, SDRAM, DDR and DDR2 mobile low power DRAM, pseudo-static RAM, and reduced latency DRAM. The company also offers NAND flash memory products, which are electrically re-writeable and non-volatile semiconductor devices that retain content when power is turned off. In addition, it provides NOR flash memory products that are electrically re-writeable and non-volatile semiconductor memory devices; phase change memory products; and image sensor products. Micron Technology?s products are used in a range of electronic applications, including personal computers, workstations, network servers, mobile phones, flash memory cards, USB storage devices, digital still cameras, MP3/4 players, and in automotive applications. It sells its products to original equipment manufacturers and retailers through internal sales force, independent sales representatives, and distributors, as well as through a Web-based customer direct sales channel. The company was founded in 1978 and is headquartered in Boise, Idaho.

Advisors' Opinion:

  • By Fitz Gerald At 2011-8-26

     

    The company's management has indicated a positive and more-balanced DRAM and NAND flash demand/supply outlook for 2011. The company also indicated a more-resilient near-term business model with low exposure to the weak PC DRAM segment (25 percent of revenues).

    Micron also indicated strong demand for NAND flash and price reductions consistent with learning curve cost reductions. With many smartphone and iPad/new Web tablets ramping, Micron management expects the benign pricing environment for NAND flash to continue in 2012.

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Pickup in Lending Lifts Big Banks

Big U.S. banks are reopening the lending spigot amid signs that an improving economy is spurring companies and individuals to borrow more.

[CITI]

On Tuesday, Citigroup Inc. and Wells Fargo & Co . recorded their strongest loan-growth numbers since the financial crisis. The figures confirm a warming trend highlighted Friday by J.P. Morgan Chase & Co .

The lending gains mark a change from the past few years, when lackluster figures opened the banks to criticism from politicians and others that the firms' tight grip on their cash was keeping economic growth under wraps. Banks responded that, after the bursting of the credit bubble that led to the financial crisis, consumers and companies were unwilling to borrow.

The data offer the latest signal that the deleveraging that swept the economy following the 2007-08 turmoil may be easing.

"Companies that are credit-worthy haven't been in a borrowing mood, but we are starting to see that change," said Jeffrey Harte, a principal with Sandler O'Neill + Partners LP.

At Citi, retail-banking loans rose 15% from a year ago to $133 billion, as the New York bank lent more to individuals and local businesses. At San Francisco-based Wells, commercial and industrial loans rose 11% from a year earlier to $167 billion at Dec. 31, amid what Chief Financial Officer Tim Sloan called broad-based growth.

[citi0117] Agence France-Presse/Getty Images

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All told, loans outstanding at the companies and J.P. Morgan rose by $41 billion from a year ago in the fourth quarter, to $2.14 trillion. That's the first increase for the three giant lenders since 2008, when crisis-related acquisitions led to big expansions at J.P. Morgan and Wells Fargo. Bank of America Corp., the second-biggest U.S. lender after J.P. Morgan, is due to post its fourth-quarter numbers on Thursday.

The expansion is good news for the U.S. economy at a time when unemployment remains high and investors are fretting about the prospect of an economic downturn or market shock spurred by Europe's debt crisis. Increased credit availability stands to help U.S. businesses that have been looking to finance new growth.

Demand is "everywhere," J.P. Morgan Chase Chief Executive James Dimon said during a conference call last Friday. "Industrial, consumer, Asia, Latin America, trade finance, corporations, all types of corporations."

The lending pickup is a bright spot in a mostly dour big-bank earnings season featuring declining revenue and mixed profits. Big U.S. financial firms are under pressure in the markets as weak economic growth, tighter regulation and a decline in trading and deal making crimp their earnings outlooks. Citigroup stock fell 8.2% on Tuesday following its weaker-than-expected fourth-quarter earnings report; Wells Fargo edged up 0.7%.

But strong lending growth, as long as the loans are of high quality, should boost earnings in coming years.

"From what we can see so far, there is actual demand for loans, as opposed t! o banks going down the credit spectrum and loosening their standards," Sandler's Mr. Harte said.

The lending gains are being driven in part by a retreat by European lenders tied to the region's debt crisis. As banks on the continent sell assets to raise capital and reduce their dependence on scarce dollar funding, big U.S. lenders are stepping in. Mr. Dimon said on Friday that "a little bit" of the bank's lending increase can be attributed to a pullback in lending by hobbled European competitors.

The banks' numbers aren't the only source of positive signs for the economy. Household borrowing on credit cards, car loans, student loans and other kinds of installment debt rose at a 9.9% seasonally adjusted annual rate in November, the Federal Reserve said this month, marking the fastest monthly increase since November 2001.

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Recent borrowers include Tom and Tevie Dante Fraser, who closed in September on a new credit line for their Fulton County, Ga., classic-car business. They got the line and refinanced a mortgage on their showroom with Wells after the bank they had borrowed from previously was taken over by a competitor.

The new loan will let the couple make opportunistic buys at the car auctions "on the spot," Ms. Fraser said, allowing the couple ! to expan d their business.

At Citigroup, corporate loans surged 24% from a year ago to $219 billion. Another bright spot was trade finance—the management of money, credit and investments for large corporations; Citigroup was able to increase this type of lending by 50% in the period, as it picked up share from European banks that are paring back as a result of the region's debt crisis.

"In the fourth quarter, we began to see some good demand for loans pretty much spread around the world," Vikram Pandit, Citigroup's CEO, said on a conference call with analysts and investors on Tuesday.

J.P. Morgan's total loan book was up 4% during the fourth quarter, as lending to middle-market and corporate banking clients rose 12% and loans retained by the investment bank were up 28%. Executives said the latest-quarter gain would have been 9% if the firm hadn't been allowing loans tied to its 2008 acquisition of Washington Mutual Inc. to run off, or mature without being replaced by new loans.

"I believe you are seeing real loan growth," Mr. Dimon said.

At Wells Fargo, commercial and industrial loans rose 11% from a year ago, while commercial real-estate lending rose 6.6%. The figures were boosted by loan purchases, particularly from retrenching European lenders, which CEO John Stumpf said would continue. The bank recently purchased loan portfolios from Allied Irish Banks and Bank of Ireland, both of which are retrenching following government bailouts.

But the European shake-out is far from the only driver of loan growth.

Ronald Duffy closed last Friday on a $600,000 loan from Wells Fargo that he says he will use to a buy a laser-cutting machine for his company, Laser Cutting Services in Tualatin, Ore. He expects the new machine to allow him to take on more capacity at lower rates.

"The banks had been very tight-fisted, and they are still being extremely cautious," Mr. Duffy said. "But they are lending to companies that they consider to be an acceptable ris! k."

< cite class="tagline">—David Benoit and Dan Fitzpatrick contributed to this article.

Write to Suzanne Kapner at suzanne.kapner@wsj.com

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Dont expect phones to disappear anytime soon in favor of new Gmail service

Two weeks ago, Google Inc. (NASDAQ: GOOG) launched its bid to change the phone industry. It wasn�t the announcement of yet another smartphone using the company�s Android operating system. For that matter, Google�s new offering wasn�t even technology new to the telecom market. Still, Google Voice, the new phone call service attached to Google�s email application Gmail, has the potential to make Internet phone communication a major competitor to established telecom companies in the United States.

Google Voice is technically no different than other Internet voice services, like eBay Inc. (NASDAQ: EBAY) and its Skype technology, and works like a traditional voice over Internet protocol, or VoIP. Calls can connect one computer user to another for free. Google Voice, also similar to Skype, allows a user to call any landline or mobile phone. Google Voice makes any call to any type of phone in the United States or Canada free to users inside those countries and it also makes international calls incredibly cheap, as low as $0.02 per minute in some cases.

Compared to the hefty price on international calls from telecoms like AT&T (NYSE: T), who will charge over $5 per minute for international calls made over a landline without an established calling plan, that affordability makes any Internet-based voice service seem appealing. Google is a threat to the likes of AT&T, though, as well as competitors Sprint (NYSE: S) and Verizon (NYSE: VZ), thanks to the strength of their brand and a base of nearly 200 million Gmail users fed up with outrageously high mobile and home phone service prices in North America. That�s not to mention that Google Voice can easily be integrated into the suite of Google applications on every Android phone on the market.

It�s the fleet of Android smartphones and how they incorporate Google Voice that will really determine the a! pplicati on�s impact on the telecom market. While Google has the potential to make inroads where Skype has not thanks to the strength of the Google name, they are still at the mercy of Verizon, AT&T, and others when it comes to getting mobile devices running their operating system connected to the Internet. As some analysts have pointed out, Google Voice will certainly bring free voice service on phones, mobile and in the home, closer to reality, but anyone who thinks that Verizon will let Droid phones ship with integrated Google Voice service at the expense of the company�s existing voice plans is crazy. Even in the event that Google Voice broke down the price barrier for voice, it may only lead companies to further hike data plan pricing, something that is already in the cards as the smartphone market grows.

Since its launch on August 25, over 1 million calls have been over Google Voice in the United States. It�s a promising start for a service that has the potential to change the telecom world. Until Google isn�t reliant on established telecoms for getting handsets with their software in to people�s hands, though, the company won�t be replacing AT&T, Sprint, and Verizon anytime soon.

As of this writing, Anthony Agnello did not own a position in any of the stocks named here.

Double-Digit Profits No Matter What the Market Does. You are not at the mercy of the markets. You can start adding double-digit winners to your portfolio now if you’re ready to embrace the new rules of investing. Here’s how to make money every day in up markets AND down.

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Good Oil Stocks In 2014

Since the middle of July, the business headlines have been relentlessly scary as governments, corporations and individuals scramble to stay afloat in a weak global economy. Yet for airline industry executives, each day brings more good news. Oil prices are falling and look set to fall even more in coming weeks.

Crude oil was above $110 per barrel in late April, but has since fallen to about $84. Now that the crisis in Libya appears to be resolved, it should start boosting output back up to prior levels, right at a time when global oil demand may be trimmed a bit in the face of an economic slowdown. At this point, a move toward $70 oil may be in the cards as these factors play out.

Good Oil Stocks In 2014:El Paso Corporation (EP)

 El Paso Corporation operates in the natural gas transmission, and exploration and production sectors of the energy industry primarily in the United States. It offers natural gas transmission services to a range of customers, including natural gas producers, marketers, and end-users, as well as other natural gas transmission, distribution, and electric generation companies through its interests in approximately 43,100 miles of interstate pipeline system. The company also operates approximately 240 billion cubic feet of storage capacity, and an LNG receiving terminal in Elba Island, Georgia. In addition, El Paso Corporation focuses on the exploration, acquisition, development, and production of natural gas, oil, and natural gas liquids in the United States, Brazil, and Egypt, as well as engages in midstream business. The company primarily sells its domestic natural gas and oil to third parties. As of December 31, 2010, it had proved natural gas and oil reserves of approximately 3.4 trillion cubic feet of natural gas equivalents. The company was founded in 1928 and is based in Houston, Texas.

Advisors' Opinion:

  • By Louis Navellier At 2011-11-17

    El Paso Corp. (NYSE:EP) is an energy company that operates in the natural gas transmission and exploration and production sectors of the energy industry. Clearly the turbulent market hasn’t affected El Paso stock — it’s up 40% year to date.

  • By Chuck At 2011-10-6

    El Paso (EP-N17.920.372.11%) is a natural gas transmission, exploration and production company. It receives “buy” ratings from an impressive 80 per cent of analysts.

    El Paso has significant interests in the 42,000-mile North American natural gas pipeline system, which will increase in importance in coming years as the U.S. segues from foreign-produced oil to domestically-abundant natural gas. El Paso has grown net income 7.2 per cent a year, on average, since 2007, but cut its dividend from a high of five cents in 2009, hurting its perception with investors. Currently, the company pays one cent a quarter, equaling an annual yield of 0.3 per cent. Analysts don't expect a near-term boost.

    Still, El Paso is an attractive investment because it has pricing power over those who need to transport or store natural gas and has ample profit margins. In the third quarter, the gross margin jumped from 54 per cent to 64 per cent and the operating margin rose from 34 per cent to 44 per cent. In addition to its stable pipeline business, El Paso's exploration unit has interest in many of the so-called emerging shale plays in the U.S., including the Haynesville, Eagle Ford and Wolfcamp properties. JPMorgan, which rates El Paso “overweight”, recently cut its 2011 natural gas price forecast to $4.35 per thousand cubic feet from $5.06 and its 12-month target for El Paso to $15.50.

    From a longer-term perspective, El Paso is particularly attractive relative to exploration stocks because it has lucrative prospects, coupled with stable transportation cash flow. Also, it remains undervalued relative to peer investments, selling for a trailing earnings multiple of 11, a forward earnings multiple of 13, a book value multiple of 2.2, a sales multiple of 2.1 and a cash flow multiple of 5.4, 43 per cent, 29 per cent, 50 per cent, 32 per cent and 41 per cent industry discounts.

    Bullish Scenario: BMO Capital Markets forecasts an advance of 31 per cent to $19.

    Bearish Scenario: Goldman Sachs ranks the stock “neutral”, with a $14 target.

  • By Brian Stoffel At 2011-10-6

    El Paso, added to the Rising Star collection by Jordan DiPietro, is a two-headed beast. "El Paso is an exploration and production company second, and a pipeline operator first," he says.

    This means that while exploration and production are subject to the vagaries of changing oil prices, the pipelines can act as a steady stream of reliable income.

    So far, the company's objective of building out its pipelines has been coming up aces: "[El Paso] has three pipeline projects that are on schedule and expected to come in about 25% under budget. With an $8 billion backlog of pipeline projects coming into fruition in the next few years, the company has multiple opportunities to boost earnings."

  • By Ken Sweet At 2011-9-1

    Shares of El Paso Corp. (EP), owner of the nation's largest natural gas pipeline network, got a boost from increased investor interest in natural gas and stronger-than-expected earnings.

    The company recently raised its full-year guidance to between $1and $1.10 a share, citing higher oil and gas prices.

    Investors also responded positively to El Paso's decision last month to spin off its natural gas exploration and production division into a separate company, allowing El Paso to focus solely on its pipeline, transportation and distribution businesses.

Good Oil Stocks In 2014:Transocean Inc. (RIG)

 Transocean Ltd. provides offshore contract drilling services for oil and gas wells worldwide. It offers deepwater and harsh environment drilling, oil and gas drilling management, and drilling engineering and drilling project management services. The company also offers well and logistics services. In addition, it engages in oil and gas exploration, development, and production activities primarily in the United States offshore Louisiana and Texas, and in the United Kingdom sector of the North Sea. As of February 10, 2011, the company owned, had partial ownership interests in, and operated 138 mobile offshore drilling units, including 47 high-specification floaters, 25 midwater floaters, 9 high-specification jackups, 54 standard jackups, and 3 other rigs, as well as 1 ultra-deepwater floater and 3 high-specification jackups under construction. Transocean Ltd. was founded in 1953 and is based in Zug, Switzerland.

Advisors' Opinion:

  • By John Paulson At 2011-10-6

    Transocean LTD., formerly Transocean Inc., is an international provider of offshore contract drilling services for oil and gas wells. Transocean Ltd. has a market cap of $24.06 billion; its shares were traded at around $75.41 with a P/E ratio of 13.11 and P/S ratio of 2.51. Transocean Ltd. had an annual average earnings growth of 12.7% over the past 10 years. GuruFocus rated Transocean Ltd. the business predictability rank of 2.5-star.

    Transocean stock has not quite recovered from the market crash of 2008, when it plunged from a $160 range to the low $40 range. As of April 25, 2011, it is selling at $73.40, with a 52-week high of $90.53. Year to date, it is up 5.6%.

    Paulson initiated his stake in the company in the fourth quarter of 2010. He bought 7.2 million shares at an average price of $67.17. The stock has gained 12.3% since then.

    Transocean owned the right that exploded in the Gulf of Mexico oil spill in April, 2010. From 2006-2009, the company earned net income of $1 billion to over $5 billion. In 2010, the year of the oil spill, it took a dramatic hit, earning $961 million in net income. In the fourth quarter of 2010, it lost $799 million in net income. Transocean had a gross profit margin of 46.5% in 2010.

    In April, Transocean’s ultra-deepwater drillship set the record for deepest water drill in history: 10,194 feet off the coast of India. The company will also pay the first installment of a proposed dividend of approximately $1 billion in June.

  • By Brian Stoffel At 2011-10-6

    Finally, a list of energy stocks wouldn't be complete without a pure-play rig maker. Though the company took some hits for its role in the Deepwater Horizon disaster in 2010, that didn't stop Jim Mueller and Michael Olsen from adding Transocean to their portfolios.

    Jim picked the stock back in November 2010 because he thought the market's expectations for the stock were simply messed up. Using a discounted cash flow model, Jim said the stock's price "implies the company can grow [free cash flow] by just 0.7% for each of the next five years, then by 0.4% for the following five years, followed by no more growth forever."

    A quick look at history showed him what a silly assumption this was: "Over the past five years, Transocean has grown free cash flow by an average of 41.7% per year."

    Shares are 19% cheaper than they were when Jim made his original recommendation, which means expectations must be downright outrageous by now.

Good Oil Stocks In 2014:ENI S.p.A. (E)

 Eni SpA, an integrated energy company, engages in the exploration, production, transportation, transformation, and marketing of oil and natural gas. The company also involves in the production and sale of electricity; refining and marketing of petroleum products; and production and sale of petrochemical products and hydrocarbons. In addition, it engages in the offshore and onshore hydrocarbon field construction. Further, the company offers offshore and onshore drilling, and offshore design and engineering services for oil and gas companies. It has a strategic partnership with Gazprom for the joint development of projects in the upstream oil and gas markets. Eni SpA operates in Europe, Africa, Asia and Oceania, and the Americas. The company was founded in 1953 and is headquartered in Rome, Italy with an additional office in San Donato Milanese, Italy.

Good Oil Stocks In 2014:Chevron Corporation (CVX)

 Chevron Corporation, through its subsidiaries, engages in petroleum, chemicals, mining, power generation, and energy operations worldwide. It operates in two segments, Upstream and Downstream. The Upstream segment involves in the exploration, development, and production of crude oil and natural gas; processing, liquefaction, transportation, and regasification associated with liquefied natural gas; transportation of crude oil through pipelines; and transportation, storage, and marketing of natural gas, as well as holds interest in a gas-to-liquids project. The Downstream segment engages in the refining of crude oil into petroleum products; marketing of crude oil and refined products primarily under the Chevron, Texaco, and Caltex brand names; transportation of crude oil and refined products by pipeline, marine vessel, motor equipment, and rail car; and manufacture and marketing of commodity petrochemicals, plastics for industrial uses, and fuel and lubricant additives. It also produces and markets coal and molybdenum; and holds interests in 13 power assets with a total operating capacity of approximately 3,100 megawatts, as well as involves in cash management and debt financing activities, insurance operations, real estate activities, energy services, and alternative fuels and technology business. Chevron Corporation has a joint venture agreement with China National Petroleum Corporation. The company was formerly known as ChevronTexaco Corp. and changed its name to Chevron Corporation in May 2005. Chevron Corporation was founded in 1879 and is based in San Ramon, California.

Advisors' Opinion:

  • By Hawkinvest At 2012-2-23

    Chevron Corporation (CVX) is a leading integrated energy company with exposure to oil, natural gas, refining, etc. This could be one of the most undervalued stocks in the market. Chevron pays a dividend that beats many other stock and bond! yields, plus it has a below market price to earnings ratio of about 8 times earnings. The average stock in the S&P 500 Index currently trades for over 12 times earnings. If oil prices continue to rise, the already healthy profit estimates for Chevron might be too low. With oil prices showing strength this early in the season, Chevron could be poised to beat earnings in the coming months. However, the stock is trading at the upper end of the recent trading range. Recently, it has been possible to buy this stock at about $102 per share, so waiting for dips could pay off.

     

    Here are some key points for CVX:

     

    Current share price: $104.25

    The 52 week range is $85.63 to $110.01

    Earnings estimates for 2012: $12.66 per share

    Earnings estimates for 2013: $13.20 per share

    Annual dividend: $3.42 per share which yields 3.1%

  • By Louis Navellier At 2011-11-17

    Chevron (NYSE:CVX) provides support to its subsidiaries in the following fields: petroleum operations, chemicals operations, mining operations, power generation and energy services. While many stocks on the NYSE have underperformed in 2011, Chevron stock is up 8% year to date.

  • By Goodwin At 2011-10-6

    Chevron (CVX-N94.663.183.48%) is the world's second-largest energy company, after fellow Dow component Exxon Mobil (XOM-N73.951.121.54%).

    But, analysts favour Chevron's stock, which receives positive reviews from 76 per cent of researchers in coverage. In contrast, Exxon receives positive reviews from 42 per cent of analysts, ranking third-worst in the Dow. Chevron is scheduled to report fourth-quarter results on Jan. 28. Its third-quarter adjusted earnings tally of $1.87 (reflecting 8.7 per cent year-over-year growth) missed the consensus forecast of $2.15 by 13 per cent, sending shares down modestly. The sales figure, at $49-billion, missed by 1.9 per cent. Chevron has integrated global operations and sells at a peer discount.

    Its stock trades at a trailing earnings multiple of 11, a forward earnings multiple of 8.9, a book value multiple of 1.8, a sales multiple of 1 and a cash flow multiple of 6.2, 43 per cent, 52 per cent, 58 per cent, 67 per cent and 32 per cent discounts to oil-and-gas industry averages. Based on forward earnings, Chevron is the fourth cheapest Dow stock. It also pays a 72-cent quarterly dividend, translating to a 3.1 per cent dividend yield, seventh highest in the Dow. It has boosted the payout 7.9 per cent a year, on average, over a three-year span and 10 per cent a year, on average, over a five-year span. Chevron has $15-billion of cash, compared to $11-billion of debt.

    Bullish Scenario: Macquarie expects Chevron's stock to rise 21 per cent to $114 in 12 months.

    Bearish Scenario: JPMorgan, despite rating Chevron “overweight”, has a $90 target.

  • By Chuck Carlson At 2011-10-6

    Chevron provides administrative, financial, management and technology support to the United States and international subsidiaries that engage in petroleum operations, chemicals operations, mining operations, power generation and energy services. Cramer holds 500 shares of CVX stocks. CVX has a dividend yield of 3.21% and returned 10.91% since the beginning of this year. It has a market cap of $195.53B and a P/E ratio of 8.52. Phill Gross and Robert Atchinson invested over $300 million in CVX.

  • By Nelson At 2011-9-10

    This major international energy company primarily engages in exploration, refining, transportation and storage of crude oil and natural gas.?Chevron (NYSE:CVX) ran to a high at over $110 before double topping and falling to its major support zone at $95 to $97. That zone is also supported by the 200-day moving average, which adds strength to the zone.?Note that despite heavy selling due to a decline in the price of crude, the stock has not broken down, and the stochastic appears to be beginning to arch up — a preliminary positive. Some energy analysts say that the U.S. government’s recent decision to release reserves from the Strategic Petroleum Reserve (SPR) will have the opposite impact than desired, creating a shortage of crude in the reserve that must be replaced at ultimately higher prices. Insiders have been strong buyers of the stock in the last 3 months.

    Buy CVX stock through $95 with a six-month target of $110 and a 12-month target of $125.?S&P has the stock rated as a “Strong Buy 5-Stars.”?The annual dividend is $3.12 providing a yield of 3.15%.

  • By Jim Cramer,TheStreet At 2011-9-7

    I see oil going to $100 a barrel in 2011, given the expansion of the world's economy. Chevron (CVX) is very levered to the price of crude -- much more so than Exxon Mobil (XOM) -- and I see it outperforming its peers.

    Nevertheless, those who bought Chevron because of its yield will, of course, be left high and dry, as I think it can go to $110 on the strength of the oil price and a very aggressive plan to produce more oil. Just a great solid stock to own in 2011. Maybe the best management in the industry, too.

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