Saturday, June 15, 2013

Take-Two Interactive Floats Convertible Senior Notes Issue

Take-Two Interactive (NASDAQ: TTWO  ) is looking to expand its capital base by $250 million. This comes in the form of an issue of five-year convertible senior notes in an underwritten public flotation. Additionally, the company's underwriters have been granted a 30-day purchase option for up to an additional $37.5 million worth of notes to cover over-allotments.

The notes will pay out interest on a semi-annual basis, at an annual rate of 1%. Their maturity date is July 1, 2018, and they will be convertible (at certain times, given certain conditions, until January 1, 2018) at an initial rate of 46.4727 shares of the firm's common stock per $1,000 principal amount of the notes. This represents a conversion price of $21.52 per share.

Take-Two said it plans to use some of the proceeds of the issue to redeem or pay the cash portion of an outstanding convertible notes issue maturing next year. The remaining funds will be utilized for "general corporate purposes," including potential acquisitions, debt retirement, and share repurchases.

The joint book-running managers of the offering are JPMorgan Chase's J.P. Morgan, Barclays, and the Securities arm of Wells Fargo (NYSE: WFC  ) . The issue is expected to close on June 18.

Currently, Take-Two has around 86.4 million shares outstanding. Those shares currently trade at $15.50 apiece.

Sony's $100 Swipe at Microsoft

Microsoft (NASDAQ: MSFT  ) came out on top in the last round of the console wars. But the company's new Xbox system isn't starting out with the same advantages over rivals. Sony announced this week that its PS4 console will be priced lower by $100 and will be less restrictive with trade-ins and game resales. But will that be enough to make it the system of choice this year?

In the following video, Fool contributor Demitrios Kalogeropoulos discusses the two console strategies and says investors should keep a close eye on gamer reactions. Even if Microsoft is targeting its system at a broader consumer base, console gamers are the early adopters that it will need to carry the system through a successful launch.

It's been a frustrating path for Microsoft investors, who've watched the company fail to capitalize on the incredible growth in mobile over the past decade. However, with the release of its own tablet, along with the widely anticipated Windows 8 operating system, the company is looking to make a splash in this booming market. In a new premium report on Microsoft, a Motley Fool analyst explains that while the opportunity is huge, so are the challenges. The report includes regular updates as key events occur, so make sure to claim a copy of this report now by clicking here.

Has Magellan Health Services Made You Any Real Money?

Although business headlines still tout earnings numbers, many investors have moved past net earnings as a measure of a company's economic output. That's because earnings are very often less trustworthy than cash flow, since earnings are more open to manipulation based on dubious judgment calls.

Earnings' unreliability is one of the reasons Foolish investors often flip straight past the income statement to check the cash flow statement. In general, by taking a close look at the cash moving in and out of the business, you can better understand whether the last batch of earnings brought money into the company, or merely disguised a cash gusher with a pretty headline.

Calling all cash flows
When you are trying to buy the market's best stocks, it's worth checking up on your companies' free cash flow once a quarter or so, to see whether it bears any relationship to the net income in the headlines. That's what we do with this series. Today, we're checking in on Magellan Health Services (Nasdaq: MGLN  ) , whose recent revenue and earnings are plotted below.

Source: S&P Capital IQ. Data is current as of last fully reported fiscal quarter. Dollar values in millions. FCF = free cash flow. FY = fiscal year. TTM = trailing 12 months.

Over the past 12 months, Magellan Health Services generated $131.2 million cash while it booked net income of $158.3 million. That means it turned 4.0% of its revenue into FCF. That sounds OK. However, FCF is less than net income. Ideally, we'd like to see the opposite.

All cash is not equal
Unfortunately, the cash flow statement isn't immune from nonsense, either. That's why it pays to take a close look at the components of cash flow from operations, to make sure that the cash flows are of high quality. What does that mean? To me, it means they need to be real and replicable in the upcoming quarters, rather than being offset by continual cash outflows that don't appear on the income statement (such as major capital expenditures).

For instance, cash flow based on cash net income and adjustments for non-cash income-statement expenses (like depreciation) is generally favorable. An increase in cash flow based on stiffing your suppliers (by increasing accounts payable for the short term) or shortchanging Uncle Sam on taxes will come back to bite investors later. The same goes for decreasing accounts receivable; this is good to see, but it's ordinary in recessionary times, and you can only increase collections so much. Finally, adding stock-based compensation expense back to cash flows is questionable when a company hands out a lot of equity to employees and uses cash in later periods to buy back those shares.

So how does the cash flow at Magellan Health Services look? Take a peek at the chart below, which flags questionable cash flow sources with a red bar.

Source: S&P Capital IQ. Data is current as of last fully reported fiscal quarter. Dollar values in millions. TTM = trailing 12 months.

When I say "questionable cash flow sources," I mean items such as changes in taxes payable, tax benefits from stock options, and asset sales, among others. That's not to say that companies booking these as sources of cash flow are weak, or are engaging in any sort of wrongdoing, or that everything that comes up questionable in my graph is automatically bad news. But whenever a company is getting more than, say, 10% of its cash from operations from these dubious sources, investors ought to make sure to refer to the filings and dig in.

With 20.7% of operating cash flow coming from questionable sources, Magellan Health Services investors should take a closer look at the underlying numbers. Within the questionable cash flow figure plotted in the TTM period above, stock-based compensation and related tax benefits provided the biggest boost, at 9.3% of cash flow from operations. Overall, the biggest drag on FCF came from capital expenditures, which consumed 33.6% of cash from operations.

A Foolish final thought
Most investors don't keep tabs on their companies' cash flow. I think that's a mistake. If you take the time to read past the headlines and crack a filing now and then, you're in a much better position to spot potential trouble early. Better yet, you'll improve your odds of finding the underappreciated home-run stocks that provide the market's best returns.

Is Magellan Health Services the best health care stock for you? Learn how to maximize your investment income and "Secure Your Future With 9 Rock-Solid Dividend Stocks," including one above-average health care logistics company. Click here for instant access to this free report.

We can help you keep tabs on your companies with My Watchlist, our free, personalized stock tracking service.

Add Magellan Health Services to My Watchlist.

Friday, June 14, 2013

After Its Sell-Off, Is This Tech Giant a Clear Buy or Dead in the Water?

The performance of the IPO class of 2011-12 has been a mixed bag, especially as far as tech companies go. However, one of the most spectacular failures in terms of performance has been social gaming shop Zynga (NASDAQ: ZNGA  ) , whose initial public investors are currently in the red to the tune of a 70% loss.

A major piece of that loss occurred earlier this month, when the company announced steep layoffs and several other overhead reductions, prompting its stock to crater once more. However, as the saying goes, could one investor's trash be another's treasure? It certainly is true that the company is now significantly cheaper, so could this be the perfect chance to buy what now amounts to a turnaround story in the making?

Zynga's post-IPO performance has been dreadful, and investors are beginning to wonder if it's "game over" for this newly public company. Being so closely tied to the world's largest social network can be a blessing and a curse. You can learn everything you need to know about Zynga and whether it's a buy or a sell in our new premium research report. Don't even think about picking up shares before you read what our top analysts have to say about Zynga. Click here to access your copy.

The South Continues to Abandon Coal

Some power producers across the nation waver between commodities, vacillating along with the prices of coal and natural gas. But those in the southeastern states have done nothing but reaffirm their commitment to the cleaner-burning fossil fuel. In this video, Fool.com contributor Aimee Duffy discusses the pipeline players that are connecting the South with its natural gas supply.

It's easy to forget the necessity of midstream operators that seamlessly transport oil and gas throughout the United States. Kinder Morgan is one of these operators, and one that investors should commit to memory due to its sheer size – it's the third-largest energy company in the U.S. – not to mention its enormous potential for profits. In The Motley Fool's premium research report on Kinder Morgan, we break down the company's growing opportunity – as well as the risks to watch out for – in order to uncover whether it's a buy or a sell. To determine whether this dividend giant is right for your portfolio, simply click here now to claim your copy of this invaluable investor's resource.

The DAX's Dip Highlights Germany's European Problem

Europe's economic plight lingers on as many of the continent's peripheral nations remain mired in recession, but even core economic powerhouses such as Germany are feeling the pain. Germany's DAX (DAXINDICES: ^DAX  ) stock index fell 1.5% this past week as investors closely watch how Europe's top economy will handle the Eurozone's ongoing crisis. Countries such as Italy and Greece don't feel any love for their stronger northern neighbor, and managing to put aside lingering resentment will be a key for the region as it tries to find its footing. Let's take a look at what's going on across the Atlantic.

The European nightmare slogs on
If Germany wants to solve the European economic mess -- and alleviate its fears about whether the contagion will spread to its own struggling economy -- the nation will have to start by patching up relations with its harder-hit southern neighbors. While average Germans haven't fared badly through the region's recession, unemployment has soared to mind-boggling levels in Spain, Greece, and other countries.

The OECD has reported a recent influx of immigration from the peripheral countries to Germany, particularly from Greece, as down-on-their-luck Europeans search for better job prospects. German immigration hit a 17-year high in 2012, and only by solving problems like Spain's 27% unemployment rate will Germany solve its own immigration mess.

German chancellor Angela Merkel's plan to solve Europe's crisis hinges on increasing the competitiveness of the region, and Germany recently agreed to begin negotiations on a European Union-U.S. free trade deal that it had previously objected to. But its highest hurdles will be closer to home, as Italy in particular continues to hold out against Germany's austerity-laden leadership tactics. Former Italian Premier Silvio Berlusconi recently called for Italy to confront Merkel over her fiscal conservatism as the Italian economy falls deeper into recession, and many Italians are buying into the rhetoric. A recent Pew survey showed that 75% of Italians feel their integration into the EU has hurt Italy's economy.

It's that kind of belief that will snuff Germany's hopes of a stronger EU economic engine. Stocks may not be under pressure so much as the broader economies in Europe, but make no mistake: So long as Europe remains stuck in neutral, the German companies most reliant on European sales will struggle.

If investors want to find the best German stocks, they should look for the most global firms. Take Bayer (NASDAQOTH: BAYRY  ) , for example. The German chemical and pharmaceutical maker has pivoted toward globalization in order to counteract Europe's crunch, which has slammed hospital budgets and health care spending. Bayer recently picked up a majority stake in California-based birth-control maker Conceptus -- a buy that capitalizes on Bayer's own birth control business -- and the firm's North American business has surged recently, posting a 17% revenue gain in 2012. Meanwhile, Bayer's European sales flattened last year. Geographic diversity will win the day for Germany's top stocks, and Bayer's shares have pulled in double-digit gains year-to-date.

Firms across Germany's DAX have caught on. BASF (NASDAQOTH: BASFY  ) shares haven't had a great year so far, but the world's largest chemicals firm is looking around the world for growth. The company seeks to double its customer base in the Asia-Pacific region by 2020 in its chemicals and materials business, projecting sales in Asia to double from last year's 12.5 million euros to 25 million euros by that year. That kind of global growth will benefit investors, and the less BASF and other German stocks rely on Europe for sales, the better shareholders will do.

Is a global turnaround in the cards?

With the American markets reaching new highs, investors and pundits alike are skeptical about future growth. They shouldn't be. Many global regions are still stuck in neutral, and their resurgence could result in windfall profits for select companies. A recent Motley Fool report, "3 Strong Buys for a Global Economic Recovery," outlines three companies that could take off when the global economy gains steam. Click here to read the full report!

Don't Expect Much From Bank of America for a While

After finishing down more than 1.5% following a roller-coaster ride in the market yesterday, Bank of America (NYSE: BAC  ) is down again this morning: 1.32% already in the first hour of trading. And with potentially tens of billions of dollars on the line in a reopened case involving -- what else -- soured mortgage-backed securities, don't expect to see much of a rally today.

That's not fair
You probably know the story already, but just in case you don't, here's a quick recap: In June 2011, B of A settled a suit brought by multiple investors -- including BlackRock (NYSE: BLK  ) and bond giant PIMCO -- over soured mortgage-backed securities issued by Countrywide Financial, the subprime lending giant that B of A acquired in 2008.

The agreed-upon amount was $8.5 billion, but some of the affected parties -- including AIG (NYSE: AIG  ) -- thought the settlement unfair. And now the case is back in court, with Bank of New York Mellon (NYSE: BK  ) arguing in favor of the original amount, and BlackRock and PIMCO in agreement with BNY Mellon.

Opponents of the settlement say losses due to the bad mortgage-backed securities could be as much as $100 billion. The presiding judge has set aside these first two weeks of June to hear the case. 

The shadow knows
An $8.5 hit to the bottom line is bad enough, but it's the potential for tens of billions more in damages that has investors spooked, and rightly so. The financial crisis is the gift that keeps on giving. Of all the banks that emerged alive from the crash, B of A was unarguably in the worst shape and has consequentially had the longest road to recovery.

That said, the superbank is essentially solid at this point and in no danger of failing (especially given that it's still too big to fail, with the implicit taxpayer guarantee that label comes with). But it's the bottom-line-robbing suits like this one that spook investors and make the stock volatile. Do you ever see shares of Wells Fargo (NYSE: WFC  ) spiking and plummeting the way B of A shares do? No. Wells is boring, but profitable, and it isn't in court every other week for crisis-related drama.

Who knows what evil lurks in the heart of B of A's balance sheet, and in the hearts of litigation-minded and crisis-scarred investors everywhere. B of A is a risky, potentially volatile investment to begin with: At the very least, don't expect too much in the way of rallies out of the behemoth until this nail-biter of a two-week trial has ended. 

Looking for in-depth analysis on Bank of America?
Look no further than this Motley Fool premium report -- written by top Motley Fool banking analysts Anand Chokkavelu and Matt Koppenheffer. They'll help you lift the veil on the bank's operations, and give you three reasons to buy and three reasons to sell along the way. And with included quarterly updates, this could literally be the last bit of investment research on B of A you'll ever need. For immediate access, simply click here now. 

#pitch{ margin-bottom: 15px; }
More Expert Advice from The Motley Fool
The Motley Fool's chief investment officer has selected his No. 1 stock for the next year. Find out which stock in our brand-new free report: "The Motley Fool's Top Stock for 2013." I invite you to take a copy, free for a limited time. Just click here to access the report and find out the name of this under-the-radar company.

Don't Get Too Worked Up Over Altisource Portfolio Solutions's Earnings

Although business headlines still tout earnings numbers, many investors have moved past net earnings as a measure of a company's economic output. That's because earnings are very often less trustworthy than cash flow, since earnings are more open to manipulation based on dubious judgment calls.

Earnings' unreliability is one of the reasons Foolish investors often flip straight past the income statement to check the cash flow statement. In general, by taking a close look at the cash moving in and out of the business, you can better understand whether the last batch of earnings brought money into the company, or merely disguised a cash gusher with a pretty headline.

Calling all cash flows
When you are trying to buy the market's best stocks, it's worth checking up on your companies' free cash flow once a quarter or so, to see whether it bears any relationship to the net income in the headlines. That's what we do with this series. Today, we're checking in on Altisource Portfolio Solutions (Nasdaq: ASPS  ) , whose recent revenue and earnings are plotted below.

Source: S&P Capital IQ. Data is current as of last fully reported fiscal quarter. Dollar values in millions. FCF = free cash flow. FY = fiscal year. TTM = trailing 12 months.

Over the past 12 months, Altisource Portfolio Solutions generated $71.9 million cash while it booked net income of $112.9 million. That means it turned 12.4% of its revenue into FCF. That sounds pretty impressive. However, FCF is less than net income. Ideally, we'd like to see the opposite.

All cash is not equal
Unfortunately, the cash flow statement isn't immune from nonsense, either. That's why it pays to take a close look at the components of cash flow from operations, to make sure that the cash flows are of high quality. What does that mean? To me, it means they need to be real and replicable in the upcoming quarters, rather than being offset by continual cash outflows that don't appear on the income statement (such as major capital expenditures).

For instance, cash flow based on cash net income and adjustments for non-cash income-statement expenses (like depreciation) is generally favorable. An increase in cash flow based on stiffing your suppliers (by increasing accounts payable for the short term) or shortchanging Uncle Sam on taxes will come back to bite investors later. The same goes for decreasing accounts receivable; this is good to see, but it's ordinary in recessionary times, and you can only increase collections so much. Finally, adding stock-based compensation expense back to cash flows is questionable when a company hands out a lot of equity to employees and uses cash in later periods to buy back those shares.

So how does the cash flow at Altisource Portfolio Solutions look? Take a peek at the chart below, which flags questionable cash flow sources with a red bar.

Source: S&P Capital IQ. Data is current as of last fully reported fiscal quarter. Dollar values in millions. TTM = trailing 12 months.

When I say "questionable cash flow sources," I mean items such as changes in taxes payable, tax benefits from stock options, and asset sales, among others. That's not to say that companies booking these as sources of cash flow are weak, or are engaging in any sort of wrongdoing, or that everything that comes up questionable in my graph is automatically bad news. But whenever a company is getting more than, say, 10% of its cash from operations from these dubious sources, investors ought to make sure to refer to the filings and dig in.

With 17.2% of operating cash flow coming from questionable sources, Altisource Portfolio Solutions investors should take a closer look at the underlying numbers. Within the questionable cash flow figure plotted in the TTM period above, other operating activities (which can include deferred income taxes, pension charges, and other one-off items) provided the biggest boost, at 7.5% of cash flow from operations. Overall, the biggest drag on FCF came from changes in accounts receivable, which represented 42.7% of cash from operations. Altisource Portfolio Solutions investors may also want to keep an eye on accounts receivable, because the TTM change is 2.4 times greater than the average swing over the past 5 fiscal years.

A Foolish final thought
Most investors don't keep tabs on their companies' cash flow. I think that's a mistake. If you take the time to read past the headlines and crack a filing now and then, you're in a much better position to spot potential trouble early. Better yet, you'll improve your odds of finding the underappreciated home-run stocks that provide the market's best returns.

We can help you keep tabs on your companies with My Watchlist, our free, personalized stock tracking service.

Add Altisource Portfolio Solutions to My Watchlist.

Thursday, June 13, 2013

3 Shares That Thrashed the FTSE 100

LONDON -- 

Prudential
Shares in insurer Prudential  (LSE: PRU  ) (NYSE: PUK  ) are up 51% in the last 12 months. In that time, the FTSE 100 is 16.7% ahead.

Prudential's last results confirmed a 71% earnings per share increase, and a 16% dividend hike. Although a decline in EPS is expected for 2013, the dividend is forecast to rise again.

Looking further ahead, broker forecasts put the shares on a 2014 P/E of 12.0, with an expected dividend yield of 3%. That's a discount to the average FTSE constituent.

Prudential's business has considerable exposure to Asia, where it generates around one-third of its profits. It is the prospects of those operations that have pushed Prudential's shares higher in recent years.

Excellent easyJet
Budget airline easyJet  (LSE: EZJ  ) is the FTSE's best performing share of the last 12 months. Anyone buying a year ago would be 145% ahead today, excluding dividends.

Sales have doubled in the last five years at easyJet. This success has allowed the firm to start paying a dividend. From 11.5 pence per share in 2011, the figure is expected to hit 26.4 pence per share for 2013, before advancing again to 29.5 pence per share in 2014.

Earnings growth at the company is also expected to continue for the next two years. If the forecasts are hit, then easyJet is today trading on a 2014 P/E of 12.9, with an expected yield of 2.5%.

Inspiring ITV
In the last 12 months, shares in ITV  (LSE: ITV  ) are up 85%.

A commercial broadcaster such as ITV will inevitably see profits rise in a recovering economy. This is because advertising receipts increase, enabling investment in programming. A virtuous cycle then kicks in, leading to higher profits.

Since 2009, net profits have increased from 91 million pounds, to 267 million pounds. EPS has risen from 2.7 pence to 7.6 pence.

Within its last trading statement, ITV reported a 6% increase in advertising revenues, and a 17% rise in online, pay, and interactive sales.

Brokers are forecasting 10.2 pence of EPS for the year, with a dividend of 3.25 pence per share. That puts ITV on a 2013 P/E of 13.2, with an expected yield of 2.4%.

Let me finish by saying that, when a share starts to recover, it can be some time before its rise is halted. Indeed, buying cyclical shares, such as ITV, ahead of an economic recovery is a classic method of making big gains from shares.

For more ways that you could use the stock market to grow your wealth fast, get the free Motley Fool report, "10 Steps to Making a Million in the Market." This report is entirely free. Just click here to start reading today.

link

Halma Lifts Dividend for 34th Consecutive Year

LONDON -- The shares of Halma  (LSE: HLMA  ) gained 3 pence to 505 pence during early trade this morning after the specialist engineer lifted its dividend for the 34th consecutive year.

The FTSE 250 mid-cap announced an annual dividend of 10.43 pence per share, a 7% improvement on the 9.74 pence per share declared during 2012.

The dividend announcement accompanied preliminary figures that showed annual sales gaining 7% to £619 million and adjusted profits before tax advancing 8% to £131 million.

Halma said its progress had been assisted by six acquisitions, with revenues up strongly in the United States and China. The group also reported a strong performance within its medical and process safety division.

Andrew Williamson, Halma's chief executive, said:

During the past year, we have continued to strengthen our business by further increasing investment in our drivers of organic growth -- innovation, people development and international expansion.

Order intake since the start of 2013 has been consistent with our expectations of sustaining year-on-year organic growth and high returns. We remain confident that Halma will make further progress in the year ahead.

Based on today's results, Halma's shares trade on a P/E of 19 and offer a 2% income.

Of course, whether those ratings, today's results -- as well as the superb dividend run -- all combine to make Halma a buy right now is something only you can decide.

However, if you currently own Halma shares and are looking for more dividend champions for your portfolio, this exclusive wealth report reviews five particularly attractive possibilities.

Indeed, all five opportunities offer a rich mix of robust prospects, illustrious histories and, naturally, dependable dividends. Just click here for your report -- it's free.

link

Why These Stocks Could See More Dividend Cuts

Millions of investors have turned to dividend stocks to provide income, and they can ill-afford to have those stocks cut their payouts right now. Yet in one sector, things look particularly dangerous for dividend investors right now.

In the following video, Fool markets analyst Mike Klesta talks with Fool contributor Dan Caplinger about this dangerous sector. As Dan notes, with large drops in revenue expected in the current quarter, several companies in the industry have already been forced to cut their dividends dramatically, and further cuts could come in the near future if prospects for the industry don't rebound quickly. Dan concludes with some guidance on what to look for in assessing whether the industry can avoid further problems down the road and how price increases in ETFs SPDR Gold (NYSEMKT: GLD  ) and iShares Silver (NYSEMKT: SLV  ) could help companies sustain their dividends.

If you're looking for a company whose success is determined by the metals market, but without involving itself in the risks of physically mining the metals, Silver Wheaton provides a unique play on the future of silver. Silver Wheaton chooses to finance the mining of silver; it has grown sales and net income every year since 2008 and also has increased competitive advantages over its limited peer group. To learn more about Silver Wheaton, click here now to access The Motley Fool's premium research report on the company.

Wednesday, June 12, 2013

Is This the Right Move to Save PC Makers?

In case you hadn't noticed, the PC market is in absolute shambles these days. With Microsoft's (NASDAQ: MSFT  ) Windows 8 having failed to drive the refresh cycle many had hoped, we're now seeing names like Microsoft and Intel (NASDAQ: INTC  ) shift their strategy. In the coming months, investors and consumers will see a new spate of devices enter the market that will take aim at the tablet market. And while these are two of the most formidable names in all of technology, the challenge they both face is maybe equally immense as both Apple (NASDAQ: AAPL  ) and Google (NASDAQ: GOOG  ) continue to click on all cylinders in the mobile space as well. This tension should be one of the defining storylines in big tech today.

It's incredible to think just how much of our digital and technological lives are almost entirely shaped and molded by just a handful of companies. Find out "Who Will Win the War Between the 5 Biggest Tech Stocks?" in The Motley Fool's latest free report, which details the knock-down, drag-out battle being waged by the five kings of tech. Click here to keep reading.

Hot Integrated Utility Companies To Watch In Right Now

By now you've probably heard the news; The Pentagon's Defense Intelligence Agency thinks "with moderate confidence" that North Korea has developed a nuclear weapon capable of being delivered on a ballistic missile. Good news, though: The DIA thinks such a weapon would have "low reliability." �

If you're like me, "low reliability" doesn't exactly elicit feelings of confidence. I mean, how accurate do you need to be to do damage with a nuke? Apparently, South Korea feels the same, as it intends to spend $1.6 billion to purchase attack helicopters from Boeing (NYSE: BA  ) equivalent to 30 helicopters at an estimated $52 million base price. South Korea also wants to purchase 60 fighter jets, all for the express purpose of countering North Korea's threats. Obviously, this is good news for defense contractors, and their investors.�

Hot Integrated Utility Companies To Watch In Right Now: Emblaze Systems Ltd(BLZ.L)

Emblaze Ltd. engages in the research and development of technology for advanced wireless and cellular solutions and products worldwide. It provides push email and personal information management synchronization to mobile users. The company was formerly known as GEO Interactive Media Group Ltd. and changed its name to Emblaze Ltd. in 1998. Emblaze Ltd. was founded in 1994 and is headquartered in Herzeliya Pituach, Israel.

Hot Integrated Utility Companies To Watch In Right Now: Telik Inc (TELK)

Telik, Inc. (Telik), incorporated in 1988, is a clinical-stage drug development company focused on discovering and developing small molecule drugs to treat cancer. The Company discovers its product candidates using the Company�� drug discovery technology, Target-Related Affinity Profiling (TRAP). TELINTRA, its principal drug product candidate in clinical development, is a small molecule glutathione analog inhibitor of the enzyme glutathione S-transferase P1-1 (GST P1-1). TELCYTA, its other product candidate, is a small molecule cancer drug product candidate designed to be activated in cancer cells.

Clinical Product Development

TELINTRA is the Company�� lead small molecule product candidate in clinical development for the treatment of blood disorders, including cancer. It has a mechanism of action and acts by inhibiting GST P1-1, an enzyme that is involved in the control of cellular growth and differentiation. Inhibition of GST P1-1 results in the activation of the signaling molecule Jun kinase, a regulator of the function of blood precursor cells. Preclinical tests show that TELINTRA is capable of causing the death or apoptosis of leukemic or malignant blood cells, while stimulating the growth and development of normal blood precursor cells. TELINTRA has been studied in Myelodysplastic Syndrome (MDS) using two formulations. A liposomal formulation was developed for intravenous administration of TELINTRA and was used in Phase I and Phase II studies in MDS patients. The results from the Phase II intravenous liposomal TELINTRA clinical trials demonstrated that TELINTRA treatment was associated with improvement in all three types of blood cell levels in patients with all types of MDS, including those in intermediate and high-risk groups. An oral dosage formulation (tablet) was subsequently developed and results from a Phase I study with TELINTRA tablets showed clinical activity and the formulation to be well tolerated. In June 2011, the Company initiated a Phase II clinical ! trial to evaluate TELINTRA tablets. In October 2011, the Company initiated an additional Phase IIb clinical trial to evaluate TELINTRA tablets. '

The activity and safety profile of tablet formulation allowed the Company to complete a Phase II trial of TELINTRA tablets in MDS. The primary objective of the Phase II TELINTRA tablet study was to determine the efficacy of TELINTRA. A multivariate logistic regression analysis was conducted to identify MDS disease prognostic factors associated with erythroid improvement response rates, including prior MDS treatment, age, gender, the international prognostic scoring system (IPSS), risk, Eastern Cooperative Group performance status, years from MDS diagnosis, MDS World Health Organization subtypes, anemia only versus anemia plus other cytopenias, dose schedule and starting dose. Results from this study show that TELINTRA is the first GSTP1-1 enzyme inhibitor shown to cause clinically reductions in red blood cell transfusions, including transfusion independence in low to intermediate-1 risk MDS patients, as well as improvement in platelet count and white blood cell levels in certain patients. TELINTRA, administered orally twice daily, appeared to be convenient and flexible for chronic treatment administration.

TELCYTA is a small molecule drug product candidate that the Company is developed for the treatment of cancer. TELCYTA binds to GST. TELCYTA has been evaluated in multiple Phase II and Phase III clinical trials, including trials using TELCYTA as monotherapy and in combination regimens in ovarian, non-small cell lung, breast and colorectal cancer. Results from these clinical trials indicate that TELCYTA monotherapy was generally well-tolerated, with mostly mild to moderate side effects, particularly when compared to the side effects and toxicities of standard chemotherapeutic drugs. When TELCYTA was evaluated in combination with standard chemotherapeutic drugs, the tolerability of the combinations was similar to that expected of each! drug alo! ne.

Clinical activity including objective tumor responses and/or disease stabilization was reported in the TELCYTA Phase II trials; however, TELCYTA did not meet its primary endpoints in the Phase III studies. Positive results from a Phase I-IIa multicenter, dose-ranging study of TELCYTA in combination with carboplatin and paclitaxel as first-line therapy for patients with non-small cell lung cancer, or NSCLC, were published in a peer reviewed publication. Clinical data demonstrated positive results of TELCYTA in combination with carboplatin and paclitaxel in the treatment of first-line lung cancer followed by TELCYTA maintenance therapy. As of December 31, 2011, the Company had an on-going investigator-led study at a single site of TELCYTA in patients with refractory or relapsed mantle cell lymphoma, diffuse B cell lymphoma, and multiple myeloma.

Preclinical Drug Product Development

The Company has a small molecule compound, TLK60404, in preclinical development that inhibits both Aurora kinase and VEGFR kinase. Aurora kinase is a signaling enzyme whose function is required for cancer cell division, while VEGF plays a key role in tumor blood vessel formation, ensuring an adequate supply of nutrients to support tumor growth. These lead compounds prevented tumor growth in preclinical models of human colon cancer and human leukemia by inhibiting both Aurora kinase and VEGFR kinase. A development drug product candidate, TLK60404, has been selected.

The Company, using its TRAP technology has discovered TLK60357, a novel, potent small molecule inhibitor of cell division. TLK60357 inhibits the formation of microtubules that are necessary for cancer cell growth leading to persistent G2/M cancer cell cycle block and subsequent cell death. This compound demonstrates potent broad-spectrum anticancer activity against a number of human cancer cells. This compound also displays oral efficacy in multiple, standard preclinical models of cancer. TLK60596, a potent VG! FR kinase! inhibitor, blocks the formation of new blood vessels in tumors. Oral administration of TLK60596 to animal models of human colon cancer reduced tumor growth.

Top 10 Stocks To Own Right Now: Uranium Equities Ltd(UEQ.AX)

Uranium Equities Limited engages in the exploration and development of uranium mining properties in Australia. The company owns 100% interest in Nabarlek uranium project consisting of approximately 50 square kilometers in the Alligator Rivers Uranium Field, Northern territory. It also engages in the development of uranium, as a by-product, from phosphates used in the production of phosphate based fertilizers in association with the Australian Nuclear Science and Technical Organisation. The company is headquartered in Adelaide, Australia.

Hot Integrated Utility Companies To Watch In Right Now: Enviro-hub Holdings Ltd (L23.SI)

Enviro-Hub Holdings Ltd., an investment holding company, provides environmental restoration services through its technology and solutions. The company engages in the recovery, processing, and trade of ferrous and non-ferrous metals; melting and refining of copper; recycling and trade of electronic waste; refining of platinum group metals; conversion of waste plastic into fuel oil; piling works; sale, rental, and servicing of engineering hardware, construction machinery, and equipment; and property development activities. It operates primarily in Singapore, Hong Kong, China, Malaysia, and Europe. Enviro-Hub Holdings Ltd. is based in Singapore.

GE Moves Its CFO to Lead GE Capital

Best Growth Companies To Buy Right Now

In his book "Telecosm," author George Gilder called this financial titan "the key source of organizational changes that have impelled economic growth over the last 20 years."

However, this figure's critics label him as the epitome of greed and all that was wrong in America during the 1970s and '80s. He earned more than a billion dollars over a four-year period as an employee of Drexel Burnham Lambert in the late 1980s -- at the time, the record for employee compensation in the United States.

 

His success was attributed to an incredible trading record of only four losing months out of 17 years prior to the firm's bankruptcy in 1992 -- as well as the creation of a new kind of financial product popularly known as junk bonds.

Best Growth Companies To Buy Right Now: Waste Management Inc.(WM)

Waste Management, Inc., through its subsidiaries, provides waste management services to residential, commercial, industrial, and municipal customers in North America. It offers collection, transfer, recycling, and disposal services. The company also owns, develops, and operates waste-to-energy and landfill gas-to-energy facilities in the United States. Its collection services involves in picking up and transporting waste and recyclable materials from where it was generated to a transfer station, material recovery facility, or disposal site; and recycling operations include collection and materials processing, plastics materials recycling, and commodities recycling. In addition, it provides recycling brokerage, which includes managing the marketing of recyclable materials for third parties; and electronic recycling services, such as collection, sorting, and disassembling of discarded computers, communications equipment, and other electronic equipment. Further, the company e ngages in renting and servicing portable restroom facilities to municipalities and commercial customers under the Port-o-Let name; and involves in landfill gas-to-energy operations comprising recovering and processing the methane gas produced naturally by landfills into a renewable energy source, as well as provides street and parking lot sweeping services. Additionally, it offers portable self-storage, fluorescent lamp recycling, and medical waste services for healthcare facilities, pharmacies, and individuals, as well as provides services on behalf of third parties to construct waste facilities. The company was formerly known as USA Waste Services, Inc. and changed its name to Waste Management, Inc. in 1998. Waste Management, Inc. was incorporated in 1987 and is based in Houston, Texas.

Advisors' Opinion:
  • [By Sam Collins]

    Houston-based Waste Management Inc. (NYSE: WM) is the largest trash hauling/disposal company in the United States. This company is a model for steady growth with earnings increasing steadily over many years.?

    S&P has a “four-star buy” on WM with a 12-month target of $42. WM pays an annual dividend of $1.36 for a yield of 3.7%.?

    Technically, the stock is in a powerful bull channel with support at $36 and resistance at $39. Buy WM as a long-term growth opportunity.

  • [By Tom Konrad]

    The only household name in this year's list, Waste Management is coming back for an encore performance in 2013.  WM is the North American leader in recycling and renewable biogas among waste and environmental services companies.  The industry has been in a cyclical downturn, and WM's well-covered 4.2% dividend makes it a solid anchor for this portfolio of small and micro-cap clean energy stocks.

Best Growth Companies To Buy Right Now: TrueBlue Inc.(TBI)

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

Advisors' Opinion:
  • [By McWillams]

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

Top 5 Tech Stocks To Watch Right Now: Checkpoint Systms Inc.(CKP)

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

Advisors' Opinion:
  • [By Michael]

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

Best Growth Companies To Buy Right Now: Sara Lee Corporation(SLE)

Sara Lee Corporation engages in the manufacture and marketing of a range of branded packaged meat, bakery, and beverage products worldwide. Its packaged meat products include hot dogs and corn dogs, breakfast sausages, sandwiches and bowls, smoked and dinner sausages, premium deli and luncheon meats, bacon, beef, turkey, and cooked ham. It also offers frozen baked products, which comprise frozen pies, cakes, cheesecakes, pastries, and other desserts. In addition, Sara Lee provides roast, ground, and liquid coffee; cappuccinos; lattes; and hot and iced teas, as well as refrigerated dough products. The company sells its products under Hillshire Farm, Ball Park, Jimmy Dean, Sara Lee, State Fair, Douwe Egberts, Senseo, Maison du Caf Advisors' Opinion:

  • [By Carlson]

    Director of Sara Lee Corp., James S Crown, bought 37,500 shares on 9/12/2011 at an average price of $17.5. Sara Lee Corporation is a global manufacturer and marketer of high-quality, brand-name products for consumers throughout the world. Sara Lee Corp. has a market cap of $10.24 billion; its shares were traded at around $17.5 with a P/E ratio of 19.9 and P/S ratio of 1.2. The dividend yield of Sara Lee Corp. stocks is 2.7%.

    On August 11, Sara Lee Corp. reported earnings for the fourth quarter 2011. The fourth quarter included an 8% increase in adjusted net sales from continuing operations to $2.3 billion; 9% reported net sales increase, 40% increase in adjusted operating income to $189 million; and reported operating income increase of 19%.

    Last week, Director James S Crown bought 37,500 shares of SLE stock. Executive Chairman Jan Bennink bought 58,400 shares in August.

Best Growth Companies To Buy Right Now: Intuitive Surgical Inc.(ISRG)

Intuitive Surgical, Inc. designs, manufactures, and markets da Vinci surgical systems for various surgical procedures, including urologic, gynecologic, cardiothoracic, general, and head and neck surgeries. Its da Vinci surgical system consists of a surgeon?s console or consoles, a patient-side cart, a 3-D vision system, and proprietary ?wristed? instruments. The company?s da Vinci surgical system translates the surgeon?s natural hand movements on instrument controls at the console into corresponding micro-movements of instruments positioned inside the patient through small puncture incisions, or ports. It also manufactures a range of EndoWrist instruments, which incorporate wrist joints for natural dexterity for various surgical procedures. Its EndoWrist instruments consist of forceps, scissors, electrocautery, scalpels, and other surgical tools. In addition, it sells various vision and accessory products for use in conjunction with the da Vinci Surgical System as surgical procedures are performed. The company?s accessory products include sterile drapes used to ensure a sterile field during surgery; vision products, such as replacement 3-D stereo endoscopes, camera heads, light guides, and other items. It markets its products through sales representatives in the United States, and through sales representatives and distributors in international markets. The company was founded in 1995 and is headquartered in Sunnyvale, California.

Advisors' Opinion:
  • [By Jim Lowell]

    Intuitive Surgical (ISRG: 329.49 0.00%) is an expensive stock and their stock price is currently well below the $400 level that it flirted with in April. However, the stock is a compelling growth story with revenues and earnings expected to climb 19% in 2011. The company faces little competitive pressure and 2011 is likely the year that consumers opt for procedures that they delayed in 2009-10. That could produce some blowout earnings results for ISRG in 2011.

  • [By Jim Lowell]

    Intuitive Surgical (ISRG: 329.49 0.00%) is an expensive stock and their stock price is currently well below the $400 level that it flirted with in April. However, the stock is a compelling growth story with revenues and earnings expected to climb 19% in 2011. The company faces little competitive pressure and 2011 is likely the year that consumers opt for procedures that they delayed in 2009-10. That could produce some blowout earnings results for ISRG in 2011.

Tuesday, June 11, 2013

Top 10 Food Companies To Invest In Right Now

LONDON -- The FTSE 100 (FTSEINDICES: ^FTSE  ) is still looking pretty glum, having dropped a further 2% to close at 6,525 points today despite a general uptick for the mining sector. With companies like Tesco and ARM Holdings falling, the overall trend was down.

But even on a day like today, we still saw some rises across the various indexes. Here are two that are looking positive.

Associated British Foods (LSE: ABF  )
Associated British Foods shares gained 1.4% to reach 1,837 pence after the firm's wholly owned British Sugar subsidiary announced that it is to redeem some of its debt financing. The firm will repay its entire æ‹¢150 million, 10.75% redeemable debenture stock 2013 on July 2, with all interest accrued to that date.

The boost has helped the Associated British Foods share price to reverse from recent minor falls -- but it's still up more than 60% over the past 12 months.

Top 10 Food Companies To Invest In Right Now: MicroFinancial Incorporated(MFI)

Microfinancial Incorporated, through its subsidiaries, operates as a specialized commercial finance company that provides microticket equipment leasing and rental, and other financing services in the United States. The company provides financing alternatives, and leases and rents commercial equipment to start-up and established businesses for use in their daily operations. It leases water filtration systems, food service equipment, security equipment, point-of-sale cash registers, salon equipment, health care and fitness equipment, and automotive equipment. The company primarily sources its originations through a network of independent equipment vendors, sales organizations, and other dealer-based origination networks. Microfinancial Incorporated was founded in 1987 and is headquartered in Woburn, Massachusetts.

Top 10 Food Companies To Invest In Right Now: Nestle SA (NESN.VX)

Nestle SA is a Swiss Company engaged in the nutrition, health and wellness sectors. It is the holding company of the Nestle Group, which comprises subsidiaries, associated companies and joint ventures throughout the world. It has such business units as Food and Beverage, Nestle Waters and Nestle Nutrition. It is also active in the pharmaceutical sector. It divides its products into Powdered and liquid beverages, Water, Milk products and Ice cream, Nutrition, Prepared dishes and cooking aids, Confectionery, PetCare and Pharmaceutical products. In February 2011, the Company acquired CM&D Pharma Ltd.

Best Defensive Stocks To Watch Right Now: Pinnacle Foods Inc (PF)

Pinnacle Foods Inc., incorporated on July 28, 2003, is a manufacturer, marketer and distributor of branded food products in North America. The Company operates in three segments: the Birds Eye Frozen Division, the Duncan Hines Grocery Division and the Specialty Foods Division. The Birds Eye Frozen Division and the Duncan Hines Grocery Division, which collectively represent its North America Retail operations, include the brands. Its brand portfolio enjoys household penetration in the United States, where its products can be found in approximately 85% of U.S. households. Its products are sold through supermarkets, grocery wholesalers and distributors, mass merchandisers, super centers, convenience stores, dollar stores, drug stores and warehouse clubs in the United States and Canada, as well as in military channels and foodservice locations. On June 24, 2011, the Company completed the sale of its Watsonville, California facility which had been recorded as an asset held for sale.

Birds Eye Frozen Division

The Company�� Birds Eye Frozen Division includes its steamed and non-steamed product offerings, with a 27.0% market share, making Birds Eye the recognized frozen vegetables brand in the United States. Birds Eye was the Company to capture a nationwide market share with a product that enables consumers to conveniently steam vegetables in microwaveable packaging.

Duncan Hines Grocery Division

Duncan Hines is the division�� brand and includes cake mixes, ready-to-serve frostings, brownie mixes, muffin mixes, and cookie mixes. During the fiscal year ended September 23, 2012, the Company added two additional items to the line. In February 2012, the Company introduced a line of frosting products, Duncan Hines Frosting Creations, which uses a patent pending frosting system to allow consumers to customize their frosting into one of 12 different flavors. The Company also offers a complete line of shelf-stable pickle products that we market and distribute n! ationally, primarily under the Vlasic brand, and regionally under the Milwaukee�� and Wiejske Wyroby brands. In 2012, the Company introduced Vlasic Farmers Garden, artisan-quality pickle line.

Specialty Foods Division

The Company�� snack products primarily consist of Tim�� Cascade, Snyder of Berlin and Husman��. These direct store delivery brands have local awareness and hold market share positions in their regional markets. The Company also manufactures and distributes certain products, mainly in the frozen breakfast, canned meat, and pie and pastry fruit filling categories, through food service channels. The Company also manufactures and distributes certain private label products in the canned meat, shelf-stable pickles and frozen seafood. As part of its ongoing strategic focus over the last several years, the Company has deemphasized the food service and private label businesses for the benefit of its higher margin branded food products.

Top 10 Food Companies To Invest In Right Now: 1-800 FLOWERS.COM Inc.(FLWS)

1-800-Flowers.com, Inc. together with its subsidiaries, operates as a florist and gift retailer in the United States. The company offers a range of products, including fresh-cut flowers, floral arrangements and plants, gifts, popcorn, gourmet foods and gift baskets, cookies, chocolates, candy, and wine through its telephonic and online sales channels, company-owned and operated retail floral stores, and franchised stores. It provides gourmet gifts, such as popcorn and specialty treats through thepopcornfactory.com; cookies and baked gifts through cheryls.com; chocolates and confections through fanniemay.com and harrylondon.com; gift baskets and towers through 1800baskets.com; Celebrations brand party ideas and planning tips through celebrations.com; and customizable invitations, announcements, and greeting cards through finestationery.com. As of July 3, 2011, the company operated 2 floral retail stores, 1 fulfillment center, and approximately 100 franchised stores located within the United States. It has strategic online relationships with Facebook, Google, AOL, Yahoo!, and Microsoft. The company was founded in 1976 and is headquartered in Carle Place, New York.

Advisors' Opinion:
  • [By Curtis Hesler]

    1-800-FLOWERS.COM, Inc. is a florist and gift shop. The company offers a range of products, including fresh-cut flowers, floral arrangements and plants, gifts, popcorn, gourmet foods and gift baskets, cookies, chocolates, candy and wine. Its EPS forecast for the current year is 0.05 and next year is 0.12. According to consensus estimates, its topline is expected to decline 1.91% current year and grow 4.91% next year. It is trading at a forward P/E of 26 Out of four analysts covering the company, one is positive and has a buy recommendation and three have hold ratings.

Top 10 Food Companies To Invest In Right Now: Flowers Foods Inc (FLO)

Flowers Foods, Inc. (Flowers Foods), incorporated in October 2000, is a producer and marketer of bakery products in the United States. The Company is the producer and marketer of packaged bakery foods for retail and foodservice customers in the United States. Flowers Foods operates 44 bakeries that produce a range of bakery products, which include breads, buns, rolls, snack cakes, and pastries. These products are sold through a direct-store-delivery network with access to approximately 70% of the United States population in the East, South, and Southwest, as well as in certain markets in California. Select Flowers products are sold nationwide through customers' delivery systems. Among the Company�� top brands are Nature�� Own and Tastykake. The Company has two business segments: direct-store-delivery (DSD segment) and warehouse delivery segment (warehouse segment). In May 2011, the Company acquired Tasty Baking Company. In July 2012, it acquired Lepage Bakeries, Inc.

The DSD segments focuses on the production and marketing of bakery products to United States customers in the Southeast, Mid-Atlantic, Northeast and Southwest, as well as select markets in California and Nevada primarily through its DSD system. The warehouse segment produces snack cakes and breads and rolls that are shipped both fresh and frozen to national retail, foodservice, vending, and co-pack customers through their warehouse channels. The Company�� brands include Whitewheat, Cobblestone Mill, Blue Bird, ButterKrust, Dandee, Mary Jane, and Mary Jane and Friends. During the year ended December 31, 2011, it introduced the new products under this brand, including Nature�� Own Whitewheat Sandwich Rounds; Nature�� Own Whole Grain Sandwich Rolls and Hot Dog Rolls; Nature�� Own Cinnamon Raisin Thin Sliced Bagels; Nature�� Own Soft Oatmeal Specialty Bread; Nature�� Own 100% Whole Grain Specialty Bread, and Nature�� Own Honey Wheat Berry Specialty Bread. In addition to Nature�� Own, its DSD segment also marke! ts: a range of specialty breads and rolls under the Company-owned Cobblestone Mill brand; white breads and buns under regional company owned and franchised brands, such as Sunbeam, Bunny, Aunt Hattie��, Holsum, and ButterKrust; Tastykake and Blue Bird branded snack cakes and pastries; flour, white, and corn tortillas under the Mi Casa and Frestillas brands, and fresh packaged bakery products under store brands for retailers.

The Company�� warehouse segment markets a range of specialty breads and rolls under the European Bakers brand, breads, buns, and rolls for specific foodservice customers, and tortillas and tortilla chips under Leo�� Foods and Juarez. This segment�� snack cakes are sold under the Mrs. Freshley��, Broad Street Bakery, and store brands. Its warehouse segment products are distributed nationally through retail, foodservice and vending customer warehouses.

The Company competes with Grupo Bimbo S.A. de C.V./Bimbo Bakeries, Hostess Brands, Inc., Sara Lee Corporation, Campbell Soup Company, McKee Foods Corporation, Cloverhill Bakery, Hostess Brands, Inc., Alpha Baking Co., Inc., Rotella�� Italian Bakery, United States Bakery, Turano Baking Company and All Round Foods, Inc.

Advisors' Opinion:
  • [By Portfolio Grader]

    This week, Flowers Foods’ (NYSE:FLO) ratings are up from a B last week to an A. Flowers Foods produces and markets packaged bakery foods for retail and foodservice customers. Wall Street has pushed the stock higher by 6.1% over the past month. 

Top 10 Food Companies To Invest In Right Now: Kellogg Co (K)

Kellogg Company (Kellogg), incorporated in 1922, is engaged in the manufacture and marketing of ready-to-eat cereal and convenience foods. Kellogg�� principal products are ready-to-eat cereals and convenience foods, such as cookies, crackers, toaster pastries, cereal bars, fruit-flavored snacks, frozen waffles and veggie foods. As of February 28, 2012, these products were, manufactured by the Company in 17 countries and marketed in more than 180 countries. It also markets cookies, crackers, and other convenience foods, under brands, such as Kellogg��, Keebler, Cheez-It, Murray, Austin and Famous Amos, to supermarkets in the United States. Its cereal products are generally marketed under the Kellogg�� name and are sold principally to the grocery trade through direct sales forces for resale to consumers. Effective June 1, 2012, Procter & Gamble Co announced that it has completed the sale of its Pringles business to Kellogg.

As of February 28, 2012, Kellogg operated manufacturing plants and distribution and warehousing facilities totaling more than 30 million square feet of building area in the United States and other countries. Its manufacturing facilities in the United States include four cereal plants and warehouses located in Battle Creek, Michigan; Lancaster, Pennsylvania; Memphis, Tennessee; Omaha, Nebraska and other plants or facilities in San Jose, California; Atlanta, Augusta, Columbus, and Rome, Georgia; Chicago, Illinois; Seelyville, Indiana; Kansas City, Kansas; Florence, Louisville, and Pikeville, Kentucky; Grand Rapids and Wyoming, Michigan; Blue Anchor, New Jersey; Cary and Charlotte, North Carolina; Cincinnati, West Jefferson, and Zanesville, Ohio; Muncy, Pennsylvania; Rossville, Tennessee; Clearfield, Utah; and Allyn, Washington. As of February 28, 2012, outside the United States, the Company had, additional manufacturing locations, some with warehousing facilities, in Australia, Brazil, Canada, Colombia, Ecuador, Germany, Great Britain, India, Japan, Mexico, Russia, S! outh Africa, South Korea, Spain, Thailand and Venezuela.

The Company�� trademarks include Kellogg�� for cereals, convenience foods and its other products, and the brand names of certain ready-to-eat cereals, including All-Bran, Apple Jacks, Bran Buds, Cinnamon Crunch Crispix, Choco Zucaritas, Cocoa Krispies, Complete, Kellogg�� Corn Flakes, Corn Pops, Cracklin��Oat Bran, Crispix, Cruncheroos, Crunchmania, Crunchy Nut, Eggo, Kellogg�� FiberPlus, Froot Loops, Kellogg�� Frosted Flakes, Kellogg�� Krave, Frosted Krispies, Frosted Mini-Wheats, Fruit Harvest, Just Right, Kellogg�� Low Fat Granola, Mueslix, Pops, Product 19, Kellogg�� Raisin Bran, Raisin Bran Crunch, Rice Krispies, Rice Krispies Treats, Smacks/Honey Smacks, Smart Start, Kellogg�� Smorz, Special K, Special K Red Berries and Zucaritas in the United States and elsewhere; Crusli, Sucrilhos, Vector, Musli, NutriDia, and Choco Krispis for cereals in Latin America. Vive and Vector are brands in Canada; Coco Pops, Chocos, Frosties, Fruit�� Fibre, Kellogg�� Crunchy Nut Corn Flakes, Honey Loops, Kellogg�� Extra, Sustain, Muslix, Country Store, Ricicles, Smacks, Start, Pops, Optima and Tresor for cereals in Europe; and Cerola, Sultana Bran, Chex, Frosties, Goldies, Rice Bubbles, Nutri-Grain, Kellogg�� Iron Man Food, and BeBig for cereals in Asia and Australia. In additional, the Company trademarks are the names of certain combinations of ready-to-eat Kellogg�� cereals, including Fun Pak, Jumbo, and Variety.

Other Company brand names include Kellogg�� Corn Flake Crumbs; All-Bran, Choco Krispis, Froot Loops, Special K, NutriDia, Kuadri-Krispis, Zucaritas and Crusli for cereal bars, Komplete for biscuits; and Kaos for snacks in Mexico and elsewhere in Latin America; Pop-Tarts and Pop-Tarts Ice Cream Shoppe for toaster pastries; Pop-Tarts Mini Crisps for crackers; Eggo, Eggo FiberPlus and Nutri-Grain for frozen waffles and pancakes; Rice Krispies Treats for baked snacks and convenience foods; Special K! and Spec! ial K2O for flavored protein water mixes and protein shakes, and Nutri-Grain cereal bars, Nutri-Grain yogurt bars, for convenience foods in the United States and elsewhere. Brands like K-Time, Rice Bubbles, Day Dawn, Be Natural, Sunibrite and LCMs for convenience foods in Asia and Australia; Nutri-Grain Squares, Nutri-Grain Elevenses, and Rice Krispies Squares for convenience foods in Europe; Kashi and GoLean for certain cereals, nutrition bars, and mixes; TLC for granola and cereal bars, crackers and cookies; Special K and Vector for meal replacement products; Bear Naked for granola cereal, bars and trail mix and Morningstar Farms, Loma Linda, Natural Touch, Gardenburger and Worthington for certain meat and egg alternatives. It also markets convenience foods under trademarks and trade names, which include Keebler, Austin, Keebler Baker�� Treasures, Cheez-It, Chips Deluxe, Club, E. L. Fudge, Famous Amos, Fudge Shoppe, Kellogg�� FiberPlus, Gripz, Jack��, Jackson��, Krispy, Mother��, Murray, Murray Sugar Free, Ready Crust, Right Bites, Sandies, Special K, Soft Batch, Stretch Island, Sunshine, Toasteds, Town House, Vienna Creams, Vienna Fingers, Wheatables and Zesta.

The Company�� trademarks also include logos and depictions of certain animated characters in conjunction with its products, including Snap!Crackle!Pop! for Cocoa Krispies and Rice Krispies cereals and Rice Krispies Treats convenience foods; Tony the Tiger for Kellogg�� Frosted Flakes, Zucaritas, Sucrilhos and Frosties cereals and convenience foods, and Ernie Keebler for cookies, convenience foods and other products. It also includes the Hollow Tree logo for certain convenience foods; Toucan Sam for Froot Loops cereal; Dig ��m for Smacks/Honey Smacks cereal; Sunny for Kellogg�� Raisin Bran and Raisin Bran Crunch cereals, Coco the Monkey for Coco Pops cereal; Cornelius for Kellogg�� Corn Flakes; Melvin the Elephant for certain cereal and convenience foods, and Chocos the Bear, Sammy the Seal (aka Smaxey the Seal! ) for cer! tain cereal products.

Advisors' Opinion:
  • [By Portfolio Grader]

    Kellogg (NYSE:K) is seeing ratings go up from a B last week to an A this week. Kellogg and its subsidiaries make and market of ready-to-eat cereal and convenience foods. 

Top 10 Food Companies To Invest In Right Now: McCormick & Company Inc (MKC)

McCormick & Company, Incorporated (McCormick) manufactures, markets and distributes spices, seasoning mixes, condiments and other flavorful products to the food industry, retail outlets, food manufacturers and foodservice businesses. The Company�� sales, distribution and production facilities are located in North America and Europe. Additional facilities are based in China, Australia, Mexico, India, Singapore, Central America, Thailand and South Africa. The Company operates in two business segments: consumer and industrial. During the fiscal year ended November 30, 2011, the Company�� consumer business contributed 59% of sales and 79% of operating income and the industrial business contributed 41% of sales and 21% of operating income.

McCormick�� products are sold directly to customers and also through brokers, wholesalers, and distributors. In the consumer segment, products are resold to consumers through a range of retail outlets, including grocery, mass merchandise, warehouse clubs, discount, and drug stores under a range of brands. In the industrial segment, products are used by food and beverage manufacturers as ingredients for their finished goods and by food service customers as ingredients for menu items to enhance the flavor of their foods. Customers for the industrial segment include food manufacturers and the foodservice industry supplied both directly and indirectly through distributors.

Consumer Business

The Company�� brands in the Americas include McCormick, Lawry�� and Club House. The Company also markets brands, such as Zatarain��, Thai Kitchen and Simply Asia. In Europe, the Middle East and Africa (EMEA) its brands include the Ducros, Schwartz and Kamis brands of spices, herbs and seasonings and a line of Vahine brand dessert items. In the Asia/Pacific region its primary brand is McCormick, with the exception of India where its joint venture owns and trades under the Kohinoor brand. The Company�� customers span a variety of retail o! utlets that include grocery, mass merchandise, warehouse clubs, discount and drug stores, served directly and indirectly through distributors or wholesalers. In addition to marketing its products to these customers, the Company is also a supplier of private label items, also known as store brands. More than 250 other brands are sold in the United States with additional brands in international markets.

Industrial Business

In its industrial business, the Company provides a range of products to multinational food manufacturers and foodservice customers. The foodservice customers are supplied both directly and indirectly through distributors. Its range of products include seasoning blends, natural spices and herbs, wet flavors, coating systems and compound flavors. In addition to a broad range of flavor solutions, we strive to achieve customer intimacy.

Advisors' Opinion:
  • [By Portfolio Grader]

    This week, McCormick & Co. (NYSE:MKC) pushes up from a B to an A rating. McCormick & Company makes and distributes spices, herbs, seasonings, and specialty foods to the food industry.

Top 10 Food Companies To Invest In Right Now: Seaboard Corporation(SEB)

Seaboard Corporation operates as a diversified agribusiness and transportation company worldwide. Its Pork division engages in hog production and pork processing; and the production and sale of fresh and frozen pork products, such as lunchmeat, ham, bacon, sausage, loins, tenderloins, and ribs, as well as further processed pork products, including raw and pre-cooked bacon to further processors, foodservice operators, grocery stores, distributors, and retail outlets under the Prairie Fresh and Daily's brand names. This division also produces and sells biodiesel from pork and other animal fats to third parties. The company?s Commodity Trading and Milling division sources, transports, and markets wheat, corn, soybean meal, rice, and other commodities, as well as operates flour, feed, and maize milling businesses. Its Marine division provides containerized cargo shipping service to 26 countries between the United States, the Caribbean Basin, and central and South America; and operates a terminal at the Port of Miami, an off-dock warehouse for cargo consolidation and temporary storage, and a cargo terminal at the Port of Houston for temporary storage of bagged grains, resins, and other cargo. As of December 31, 2010, it operated 10 owned and approximately 29 chartered vessels; and dry, refrigerated, and specialized containers and other related equipment. The company?s Sugar division produces and refines sugar cane, produces alcohol, and purchases and resells sugar to retailers, soft drink manufacturers, and food manufacturers in Argentina. Its Power division operates as an independent power producer in the Dominican Republic operating 2 floating barges with a system of diesel engines with combined capacity of approximately 112 megawatts of electricity. Seaboard Corporation also purchases and processes jalapeno peppers in the United States. The company was founded in 1928 and is based in Shawnee Mission, Kansas. Seaboard Corporation is a subsidiary of Seaboard Flour LLC.

Top 10 Food Companies To Invest In Right Now: Sysco Corporation(SYY)

Sysco Corporation, through its subsidiaries, distributes food and related products primarily to the foodservice or food-away-from-home industry in North America and Europe. The company offers a line of frozen foods, such as meats, fully prepared entrees, fruits, vegetables, and desserts; a line of canned and dry foods; fresh meats, custom-cut fresh steaks, other meat, seafood, and poultry; dairy products; beverage products; imported specialties; and fresh produce. It also supplies various non-food items, including paper products, such as disposable napkins, plates, and cups; tableware, which include china and silverware; cookware comprising pots, pans, and utensils; restaurant and kitchen equipment and supplies; and cleaning supplies. In addition, the company offers personal care guest amenities, equipment, housekeeping supplies, room accessories, and textiles to the lodging industry. It serves restaurants, hospitals and nursing homes, schools and colleges, hotels and mote ls, lodging establishments, and other foodservice customers. Sysco Corporation was founded in 1969 and is headquartered in Houston, Texas.

Advisors' Opinion:
  • [By Michael]

    Sysco distributes food products to restaurants, health care and educational facilities, and hotels. The company operates 177 distribution facilities serving about 400,000 customers and generates more than $39 billion in annual sales. Sysco has increased dividends 43 times in 40 years.

    In the past five years, earnings have grown roughly 8% a year. Although earnings were flat year-over-year at $1.2 billion in the fiscal year ended July 2, 2011, EPS was 4% higher at $1.94 compared with $1.86 in 2010.

    In November, Sysco hiked the dividend by 4% to a $1.08 annual rate. The new dividend is payable on Jan. 27, 2012, to shareholders of record on Jan. 6, 2012.

Top 10 Food Companies To Invest In Right Now: CVR Partners LP(UAN)

CVR Partners, LP engages in the production of nitrogen fertilizers including ammonia and urea ammonium nitrate. The company was incorporated in 2007 and is based in Sugar Land, Texas. CVR Partners, LP operates as a subsidiary of CVR Energy, Inc.

Advisors' Opinion:
  • [By Smith]

    CVR Partners is a new MLP that went public in April 2011 when CVR Energy spun off the fertilizer side of its business. The company is the only fertilizer producer in North America that uses petroleum coke (a byproduct of crude-oil refining) to make nitrogen-based fertilizer. CVR Partners secures its petcoke supplies from a nearby CVR Energy refinery. This reliable feedstock supply gives CVR Partners a nice low-cost advantage, since petcoke is much cheaper than natural gas. 

    CVR Partners produced 350,000 tons of urea and ammonium nitrate (UAN) fertilizer during the first six months of 2011 and already has plans to expand output. The company benefits from increased UAN prices, which are 46% higher this year than last year. As a result, CVR Partners' revenue rose 46% year-over-year in the first six months of 2011 to $138 million. Earnings rose 111% in the same period to $54.9 million. The company is also financially strong, with cash of $280 million and only $125 million of debt

    CVR Partners paid a cash distribution of $0.41 per unit in the June quarter of 2011, which covered the period from the April 13 initial public offering (IPO) closing through the end of June. More importantly, the company reaffirmed guidance for distributions totaling $1.92 for the 12 months ending March 2012. Based on the promised $1.92 distribution, the stock yields 7.4%. With just two quarters of reported earnings, the company doesn't have a measurable price-to-earnings (P/E) ratio yet, but CVR Partner shares have gained 50% since its debut at $18 per share on the New York Stock Exchange.

Lululemon's Stock Troubles

How Investing in Stocks Can Make You Richer

Ever since the market meltdown more than four years ago, millions of people have been too scared to even think about investing in stocks. Admittedly, the financial crisis and ensuing stock market crash cost plenty of investors a huge portion of the value of their portfolios, leaving them with losses that many of them could ill afford to suffer.

But the potentially much larger negative impact that the financial crisis had is still being felt today. Because of the fear that the market meltdown brought with it, entire generations of potential investors believe that investing in stocks is akin to playing a rigged game. Those who have been too scared to put their money to work in the market have missed out on one of the biggest market rebounds in history, showing once again that when it comes to investing, stocks offer growth potential that other investments just can't match.

Looking at the alternatives
When you look at current conditions, the case for investing in stocks looks even more attractive. Keep your money in a savings account, money market mutual fund, or other cash investment, and you'll be lucky just to earn any interest at all. Consider the impact of inflation on the purchasing power of your cash stash, and you'll realize that every day of so-called safety you get from having money in the bank comes at the cost of long-term erosion of your money's true value. Even if you lock up your money for a relatively long period of time, 10-year Treasuries yielding 2.2% are barely enough to stay ahead of rising prices, and that's before considering the additional impact of taxes.

When you look back further, though, the evidence favoring stocks is even stronger. It's true that by cherry-picking certain time periods, you can find occasions on which stocks underperformed bonds and other investments. For instance, in the 30 years from 1981 to 2011, bonds beat out stocks in terms of total return. But that comparison used a particularly well-chosen endpoint favoring bonds, as interest rates in the early 1980s were well above 10% and have fallen dramatically in the ensuing decades.

But overall, looking at good periods and bad, stocks have delivered stronger returns by far than bonds or cash. According to figures from Ibbotson, the geometric average of returns from stocks has come in at 9.3% over the past 85 years, versus just 5.1% for bonds and 3.6% for cash.

What those numbers really mean
The problem with percentages, though, is that they don't tell the whole story. But when you plug in realistic numbers to go with those returns, you can see how important they truly are.

For instance, say you're able to invest $100 each month and get the average returns listed above. With stocks earning 9.3%, your nest egg would build up to about $196,000 in 30 years. That compares to just $85,000 for bonds and less than $65,000 for keeping money in cash over that time period.

As you can see, the higher returns on stocks build in a substantial amount of protection from adverse markets. Even if you earn 2 or 3 percentage points below the long-term average, you'd still likely outperform bonds and cash. And if you're fortunate enough to invest in a period when stock returns are greater than the long-term average, then you'll reap even bigger rewards.

How to invest in stocks without risking everything
With stocks near all-time highs, being prudent about which stocks to invest in makes plenty of sense. As you explore opportunities right now, focus on a few key ideas:

Use index funds or exchange-traded funds to get easy diversification with modest investments. Broad-market ETF Vanguard Total Stock Market  (NYSEMKT: VTI  ) makes a good starting point for many investors because it provides a mix of U.S. companies of all sizes, avoiding the need to have separate funds to add stocks of small and mid-size companies. Adding other ETFs can further diversify into stocks outside the U.S., with iShares MSCI EAFE (NYSEMKT: EFA  ) providing broad-based exposure to stocks in some of the largest economies in the world. Look for short-term crisis situations with likely positive outcomes. For instance, Boeing (NYSE: BA  ) took a big hit after its Dreamliner aircraft's battery safety was compromised. For a few months, the aircraft was grounded, leading to intense investor fear. Yet the company rapidly resolved the problem, and investors have once again focused on the multitrillion-dollar potential for future orders over the next 20 years, rewarding value investors. Be careful with high-priced, high-growth stocks. They can be the best performers in your portfolio, but you'll suffer gut-wrenching moves along the way. Netflix (NASDAQ: NFLX  ) , for instance, soared to nearly $300 per share in 2011 before plunging 75% in the face of its ill-advised attempt to break up its DVD and streaming businesses into two separate companies. Just a couple of years later, though, Netflix has gotten its growth back, with higher prices having provided greater revenue and international expansion giving the company plenty of potential for future growth. The shares have more than quadrupled from their 2012 lows.

Step into stocks
Investing in stocks involves taking on more risk than many people feel comfortable with at first. But as a means to reaching your financial goals, owning stocks can help your money work a lot harder for you over the long haul.

Boeing operates as a major player in a multitrillion-dollar market in which the opportunities and responsibilities are absolutely massive. However, emerging competitors and the company's execution problems have investors wondering whether Boeing will live up to its shareholder responsibilities. In our premium research report on the company, two of The Motley Fool's best minds on industrials have collaborated to provide investors with the key, must-know issues surrounding Boeing. They'll be updating the report as key news hits, so don't miss out -- simply click here now to claim your copy today.

#pitch{ margin-bottom: 15px; }
More Expert Advice from The Motley Fool
The Motley Fool's chief investment officer has selected his No. 1 stock for the next year. Find out which stock in our brand-new free report: "The Motley Fool's Top Stock for 2013." I invite you to take a copy, free for a limited time. Just click here to access the report and find out the name of this under-the-radar company.

Looking for Winners? The Dow Had None Today

It's pretty rare when every single component of the Dow Jones Industrials (DJINDICES: ^DJI  ) drops in unison, but when it happens, it usually results from a broad-reaching macroeconomic event. The catalyst for today's 217-point drop in the average was worry about the impact of a tapering of Federal Reserve bond-buying that looks increasingly likely to take place in the near future. A lot will hinge on Friday's reading on the employment front, but in many ways, investors are in a no-win situation. If Friday's jobs number is strong, it will support calls for reducing quantitative easing activity, but a weak number will simply call into question the effectiveness of the entire strategy the Fed has followed for years.

The best the Dow could come up with today was a 0.2% decline for Cisco Systems (NASDAQ: CSCO  ) . Oddly enough, the tech giant has become one of the prime examples of the reversal of thinking among investors of what constitutes growth and value stocks. Cisco has gone from paying no dividend as recently as the beginning of 2011 to offering a nearly 3% yield, and its modest valuation makes shares look like a bargain. Although investors remain nervous about the company's ability to defend its networking turf while expanding into other lucrative areas of information technology, Cisco nevertheless is exhibiting characteristics you'd expect from more traditional defensive stocks.

Johnson & Johnson (NYSE: JNJ  ) , which is one of those defensive stalwarts, also managed to limit its losses, falling about 0.5%. In the latest of a series of recalls over the past several years, J&J voluntarily recalled its Cilest birth-control drug, which the company sells outside the U.S. in areas including Latin America, Europe, and Asia. The recall involved concerns about a failure of one of the drug's active ingredients to pass an internal quality-control test. J&J assured users that the pill is safe, but perceptions of quality control have plagued the company lately, and this latest episode does little to reassure investors that J&J has solved the fundamental problems that have led to so many recalls recently.

Finally, beyond the Dow, a few winners did manage to gain ground. ITT Educational Services (NYSE: ESI  ) was one of the biggest, picking up more than 8%. Defying negative perception of the for-profit education industry, ITT has been buying back its stock, and today's gains reflect increasing confidence that the educator will survive its controversies over the past several years. Most of ITT's peers lost ground on the day, suggesting that investors truly value the confidence that big stock buybacks offer.

Once a high-flying tech darling, Cisco is now on the radar of value-oriented dividend lovers. Get the low down on the routing juggernaut in The Motley Fool's premium report. Click here now to get started.

Monday, June 10, 2013

Why Gas Will Never Hit $5 a Gallon

The cost to fill a tank of gas is one of the single biggest expenses most families have aside from the cost of housing. When the cost of gas goes up, it puts a strain on our bank accounts, and when it falls it's a small reprieve.

So, long term, the cost of gas and oil is very important to the economy, and for the past decade the cost has been moving higher. The good news is that demand for oil has been falling, U.S. production is rising, and alternatives are becoming a reality. With those facts in mind, here are the three biggest reasons gasoline won't move much higher and why I think we'll never see $5 per gallon at the pump.

Demand is falling
Demand for oil and gas in the developed world has been declining for nearly a decade, and the pace is increasing. The biggest factor driving down demand for oil isn't that people are driving less; it's efficiency in the miles we are driving. A decade ago, SUVs and massive trucks were the most popular wheels on the road; today, small cars, hybrids, and even electric vehicles are replacing them.

European Union Gas and Diesel Oil Demand Chart

European Union Gas and Diesel Oil Demand data by YCharts

Long-term, this trend will only continue. The Obama administration has rolled out a 54.5-mile-per-gallon corporate average fuel economy standard for the auto industry, which will take effect in 2025. Not every vehicle will get 54.5 miles per gallon, but fleets have to improve efficiency dramatically, and as they do, demand for oil both in the U.S. and internationally will fall.  

Oil isn't as inelastic as it used to be
It used to be that oil could climb continuously and people would pay whatever it cost, with little alternative. In economics we call that situation inelastic demand, and it's why OPEC had such power over the global economy.

But over the past decade, the elasticity of oil has increased, and alternatives have a lot to do with it. Clean Energy Fuels (NASDAQ: CLNE  ) is supplying buses and local trucks with natural gas at a lower cost than diesel, and the company is building a national infrastructure for the trucking industry. Westport Innovations (NASDAQ: WPRT  ) is providing the technology to bring that natural gas to the trucking industry, saving money over diesel and lowering demand from one of the biggest users of oil.

As these two companies gain traction in trucking fleets, the availability of natural gas will grow, and even passenger cars will begin to see more natural gas options. The relatively high cost of oil and the relatively low cost of natural gas has made this alternative a reality.

More concerning for oil companies should be the wild success Tesla Motors (NASDAQ: TSLA  ) has had selling electric cars. Tesla won't electrify the entire auto fleet overnight, but it's now proved that EVs can be a success, something that was a pipe dream just a few years ago. Chevy and Nissan have given EVs a go with little success, but Ford has a decent car on its hand with the Ford Focus Electric. Mercedes and Toyota are also trying their hand at electric vehicles, and they're calling on Tesla to design the drive train.

An electric vehicle may not make sense today, with gas averaging $3.64 nationally, but if it jumped to anywhere near $5, you can bet millions of people would consider going electric. Long term, as technology improves, EVs will continue to take share, reducing oil demand and providing an alternative that puts a cap on how high gas prices can go.

Supply can turn at at the drop of a hat
When OPEC commanded the world's oil market and prices were inelastic, it could control supply and prices as well. But the oil-supply business is no longer the monopoly it once was, with ultra-deepwater offshore drilling growing and fracking expanding in the U.S. and abroad.

What has become more elastic than demand for oil is the supply. When oil flirts with $100 per barrel, companies scramble to drill more wells, and when it falls, they cut down on capital spending. Fracking can cost $70 per barrel just to produce oil, so supply shuts off if prices get too low. But the reverse is true, and when demand goes up, supply suddenly hits the market.

We can take drilling in North Dakota as a proxy for this phenomenon. When oil fell below $40 per barrel in early 2009, the number of rigs drilling fell off the map. As the price rose from 2009 to 2012, the number of rigs grew, and now that the price of oil has begun trending slowly downward, so has the number of rigs in action.

North Dakota Inland Rotary Rigs Chart

North Dakota Inland Rotary Rigs data by YCharts

Of course, increased drilling in North Dakota does have its side effects. Regional price spikes are getting worse, and depending on where you live, you may be thinking that gas-price relief hasn't hit your pocketbook. The Midwest and California have seen unusually high gas prices this year, but that's largely driven by regional refinery outages and a lack of infrastructure to get oil from new wells to refineries. But overall, gas prices nationally have been flat for about two years.

US Retail Gas Price Chart

US Retail Gas Price data by YCharts

Foolish bottom line
When we look at the national and global picture, there's beginning to be a lot of downward pressure on oil and gasoline prices. Lower demand, increased supply, and alternatives from other energy sources are just a few of those factors. We have yet to hit $5 per gallon of gasoline nationally, and with the macro trends I'm seeing, I don't think we ever will.

There are many different ways to play the energy sector, and The Motley Fool's analysts have uncovered an under-the-radar company that's dominating its industry. This company is a leading provider of equipment and components used in drilling and production operations, and poised to profit in a big way from it. To get the name and detailed analysis of this company that will prosper for years to come, check out the special free report "The Only Energy Stock You'll Ever Need." Don't miss out on this limited-time offer and your opportunity to discover this under-the-radar company before the market does. Click here to access your report -- it's totally free.

This Company Is Eating Facebook's Lunch

It's been one heck of a run for professional networking platform LinkedIn (NYSE: LNKD  ) . With an IPO pricing at about $45 per share, the stock took off and hasn't looked back since. And when we consider its market opportunity of 600 million-plus professionals within the 3.3 billion in the global workforce, I'd say there's plenty of room to run.

Two sides to every coin
On the flip side of the coin, Facebook (NASDAQ: FB  ) has had a pretty tough go of it since going public. Facebook is very relevant to the competitive landscape for LinkedIn thanks to BranchOut, the application designed to offer professional networking and recruiting tools for the more than 1 billion registered users of Facebook. Facebook's IPO will go down as one of the greater bungles in history and it's still trying to recover. The chart below shows the kind of year the two companies are having. It's day versus night:

FB Chart

FB data by YCharts.

The bet on Facebook at the time of the IPO was that the company had everything already figured out and the price was reflective of robust future results that were more or less a lock. In hindsight, we know that Facebook was extremely overvalued at the IPO and it still has a lot to prove. Now, it doesn't mean that Facebook can't or won't be successful in the longer-term. But LinkedIn is eating Facebook's lunch today, and I think it has to do with leadership and its strategic vision.

LinkedIn recently offered a presentation at the Bank of America Merrill Lynch Global Technology Conference where investors got a glimpse of management's four priorities and how they're guiding the business to the success it's witnessing today:

Priority No. 1: Talent. LinkedIn's primary product is the talent they funnel to companies. Without a focus on the talent, they might as well just pack it up and go home.

Priority No. 2: Technology. LinkedIn is a great example of a business with classic network effects; as such, the platform must scale to accommodate its exploding membership base. Management will continue to focus on this as the number of connections multiplies.

Priority No. 3: Product. The overarching products for LinkedIn offer three main value propositions: professional identity, insights, and working where their members work. Management focuses on developing their products with these targets in mind.

Priority No .4: Monetization. The bull's-eye here for management is in the talent (also known as hiring) solutions segment which is the largest and fastest growing. The other two drivers are marketing solutions and premium solutions.

Investors should take note of where monetization falls here as I believe this is crucial to LinkedIn's success. Management is smart to note that monetization only happens if the other three priorities work first. In other words, the first three priorities help guide the fourth, not the other way around. This is why LinkedIn is killing it today: Management has its priorities in the right order.

Money and jobs are cool
It's also worth noting that LinkedIn's fastest-growing demographic is students. Given the news we've been hearing lately about how Facebook is losing its "cool factor" with teens, it's certainly worth remembering that at the end of the day, LinkedIn's value proposition for generations to come is that it can and will affect their paycheck. Further, their behavior on Facebook can and does also affect their paycheck. I can't help but wonder at what point a young student sees the trade-off there and devotes more time to LinkedIn and developing their professional identity, as it serves a purpose well beyond just social interaction.

You're hired!
For me, it all boils down to this: If you gave me shares of Facebook today, I'd sell them immediately and plow all the proceeds into LinkedIn. The differences between these companies grow starker every day and investors would be wise to take note. No, it's not the cheapest stock on the block. But I also believe that LinkedIn is going to be one of the most relevant companies in the world over the coming decade and beyond. It's not too late to join the party.

After the world's most hyped IPO turned out to be a dud, many investors don't even want to think about shares of Facebook. But there are things every investor needs to know about this revolutionary company. The Motley Fool's newest premium research report shows that there's a lot more to Facebook than meets the eye. Read up on whether there is anything to "like" about it today to determine if Facebook deserves a place in your portfolio. Access your report by clicking here.