Today's 3 Best Stocks

Volatility is the name of the game yet again today for the broad-based S&P 500 (SNPINDEX: ^GSPC  ) , which is being tossed around like a rag doll following yesterday's huge tumble.

With no economic data on the table today, investors instead chose to focus for a third-straight day on the implication of the Federal Reserve's meeting on Wednesday, which left open the potential for a paring back of its $85 billion monthly bond-buying program before the year is out.

As I've stated before, this has both positive and negative implications. On the plus side, it signals that the economy is strong enough to move forward without the aid of additional stimulus. Conversely, low lending rates have been spurred on by continued monetary easing by the Fed. Without this easing, there's a good chance interest rates will rise -- we've already seen 10-Year U.S. Treasury yields jump 90 basis points in about two months -- and could cause loan activity to slow to a crawl.

After a whipsaw day, the S&P 500 ended higher by 4.24 points (0.27%), to close at 1,591.89. While certainly volatile, three stocks within the S&P 500 had no trouble putting together a solid day for shareholders.

Leading the pack higher was cloud-software solutions company salesforce.com (NYSE: CRM  ) , which advanced 4.2% on a report that it is about to announce a cloud-software alliance with Oracle according to the The New York Times. The deal would be beneficial to both parties, as it would allow data to be easily shared between Oracle and salesforce's software, potentially making both attractive to prospective software clients. It would certainly make sense for Oracle, which missed Wall Street's estimates with its third-quarter results, and disappointed with its fourth-quarter outlook.

Residential real estate investment trust Equity Residential (NYSE: EQR  ) had a particularly good day, jumping by 3.4%. REITs that specialize in apartment community ownership are in fantastic shape if the Fed is thinking about reducing its bond buying. As lending rates rise from less monetary easing, the desire to purchase a home should drop considerably, making apartment living a smart choice. Equity Residential already has high occupancy rates, but, as rates rise, it could see occupancy tick even higher.

Finally, shares of drug maker AbbVie (NYSE: ABBV  ) added 3.8% at the expense of peer Idenix Pharmaceuticals, which imploded after the Food and Drug Administration placed a hold on clinical trials for experimental hepatitis-C drug, IDX20963. The FDA is requesting Idenix supply the agency with additional safety data before it'll let it start clinical trials for IDX20963, placing the company even further behind in the hepatitis-C race. AbbVie, on the other hand, is in great share with its oral hep-c trio performing very in trials and looking like the only serious competitor to Gilead Sciences sofosbuvir -- assuming, of course, that it gets approved. 

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HLSS Floats New Stock Issue for Ocwen Unit Buy

Home Loan Servicing Solutions (NASDAQ: HLSS  ) is servicing its capital base with a new share offering that should total nearly $300 million. The company is floating 13 million shares of its stock in an underwritten public issue at a price of $23 per share. All told, the gross proceeds of the offering should amount to roughly $299 million.

HLSS said it plans to use its share of the proceeds of the issue to purchase the mortgage servicing assets of Ocwen's (NYSE: OCN  ) loan servicing arm, plus expenses related to the transaction.

The joint book-running managers of the issue are Barclays' Capital division, JPMorgan Chase's (NYSE: JPM  ) J.P. Morgan Securities, Bank of America's (NYSE: BAC  ) Merrill Lynch, and the Securities unit of Wells Fargo (NYSE: WFC  ) . The offering is expected to close on June 26.

At the moment, HLSS has nearly 57 million shares outstanding, and its stock trades at $23.01 per share.

Immigration Reform's Big Impact on Health Care

Congress has a hot topic on its hands this summer. A proposed immigration reform bill is making its way through the halls of Capitol Hill. While lawmakers argue the pros and cons of the legislation on immigration, the bill also would make a major impact on health care in the U.S.  

More spending
According to the Congressional Budget Office, around 8 million unauthorized residents would gain legal status and 10.4 million additional residents would be added to the U.S. by 2023. The CBO says that federal spending will increase by $262 billion over the next decade due largely to refundable tax credits and higher health care spending.

That higher health care spending goes primarily to two areas: Obamacare and Medicaid (including the Children's Health Insurance Program, or CHIP). Additional spending on Obamacare health insurance exchange subsidies will amount to $82.3 billion through 2023, according to the CBO, with another $5 billion hit from lower revenue. Medicaid and CHIP will require $29.3 billion added spending during the same period with the proposed immigration reform.

Medicare spending would only increase by $0.8 billion, but this highlights a larger issue. The CBO only scores the budgetary impact for the first 10 years. Most unauthorized immigrants wouldn't qualify for Medicare until many years from now -- well beyond the CBO's cost calculation time frame.

The CBO did take a stab at going out further in time, with projected increased health care spending of around $470 billion in the 10-year period ending in 2033. However, according to the Center for Immigration Studies, the average age of unauthorized immigrants was around 42 in 2010. Newly incoming immigrants tend to be much younger, with an average age of less than 30. This means that even estimating through 2033 doesn't give a good picture of the ultimate health care costs for the proposed bill. 

We should note that the CBO expects increased revenue will exceed the higher costs incurred. Through 2023, around $459 billion of higher revenue is expected resulting from additional taxes paid by legalized residents and new immigrants. These higher taxes assume higher employment levels, according to the CBO, "because the larger population would boost demand for goods and services and, in turn, the demand for labor." 

More doctors
One clearly positive impact from the proposed immigration bill would be in enabling more physicians to remain in the U.S. In particular, non-resident physicians who work in areas that have a shortage of health care professionals or at Veterans Administration hospitals will have an easier path to staying in the U.S. with the current immigration reform legislation.

I call this clearly positive because the U.S. faces a physician shortage. The New York Times reported last year that the nation will have nearly 63,000 fewer doctors than needed by 2015, with that number doubling by 2024. A recent research study led by Dr. Candace Chen of George Washington University confirmed that critical physician shortages loom ahead, especially in rural areas. 

Current doctors echo these concerns. A 2013 Deloitte survey found that nearly three-quarters of physicians think that fewer individuals will consider a career in medicine. 62% of respondents said that more physicians will retire early because of changes in the practice of medicine.

More investment ideas?
As always, The Motley Fool looks for an investing angle with any story. How can investors take action based on immigration reform's potential impact on health care?

The best approach would be one that should be successful regardless of whether the bill ultimately becomes law. Focusing on investment alternatives that address the physician shortage issue raised in the immigration reform debate seems to meet that criteria. Even if more physicians from other countries are allowed to stay in the U.S., it won't be enough to fully solve the problem.

With this in mind, telemedicine offers potential to help by enabling physicians to provide care for patients in other geographical areas. Companies that facilitate effective use of telemedicine should do well over the long run.

Cisco (NASDAQ: CSCO  ) looks like one good pick. Technology research firm Technavio touts Cisco as one of the key leaders in telemedicine video conferencing. The firm expects the telemedicine video telecommunications market to grow 18% annually over the next few years. Cisco's Telepresence video conferencing product should rack up big gains if those projections prove true.

Qualcomm (NASDAQ: QCOM  ) is another major player in telemedicine. The company's Qualcomm Life division markets the 2Net platform that supports end-to-end wireless connectivity between medical devices and clinical professionals. Qualcomm Life counts more than 170 organizations in its 2Net ecosystem, including major medical device makers and electronic medical record systems vendors.

Neither stock appears too expensive right now. Cisco has a forward price-to-earnings ratio of less than 12, while Qualcomm's forward multiple stands a little below 13. However, Qualcomm seems to have the better overall growth opportunities, so it could be the better value between the two.

Both stocks also offer decent dividend yields. Cisco's dividend yield stands at 2.8%, while Qualcomm isn't too far behind with a 2.3% yield. 

Congress must deal with immigration reform this summer. In the meantime, investors can buy two stocks that help address one of the areas that immigration reform hopes to tackle. Hot topic, hot stocks -- I say go with the stocks.

While passage of immigration reform remains up in the air, Obamacare is here and just cranking up. Still in the dark about how Obamacare might affect you and your portfolio? Don't worry -- you're not alone. To help prepare investors for the massive changes coming to the American health care system, The Motley Fool created a special free report that makes this complex topic easily understandable. Download "Everything You Need to Know About Obamacare" and discover how the law may impact your taxes, health insurance, and investments. Click here for your free copy today.

Was Waze a Good Deal for Google?

Google (NASDAQ: GOOG  ) made headlines recently with its acquisition of Israeli mapping start-up Waze. The deal's received mixed reviews, especially due to the price tag, which is rumored to be north of $1 billion -- quite the payout for a company with little-to-no revenue. So what gives? Should Google shareholders be concerned, or did Google once again prove it's one of the smartest tech conglomerates around? Fool contributor Andrew Tonner weighs in the deal in the video below.

As one of the most dominant Internet companies ever, Google has made a habit of driving strong returns for its shareholders. However, like many other web companies, it's also struggling to adapt to an increasingly mobile world. Despite gaining an enviable lead with its Android operating system, the market isn't sold. That's why it's more important than ever to understand each piece of Google's sprawling empire. In The Motley Fool's new premium research report on Google, we break down the risks and potential rewards for Google investors. Simply click here now to unlock your copy of this invaluable resource.

Do You Know the Top Stocks of the Last Decade?

Right now, five stocks have delivered 10-year returns north of 4,500%. That's an annual return of at least 46% -- roughly tripling your investment every two years. How many of these top stocks can you name?

AAPL data by YCharts.

Let's start at the bottom of the list.

Back in 2003, Illumina (NASDAQ: ILMN  ) was a micro-cap specialist in genetic testing with negative earnings and more debt than cash. The company almost went under while waiting for the genetic-testing market to mature. Now it's a hot name in a red-hot health-care market. Long-term shareholders have pocketed an outsized 4,600% return in 10 years, while the Dow Jones Industrial Average (DJINDICES: ^DJI  ) gained just 65%.

How's that for market-beating performance? But wait -- it only gets better.

Everybody knows Apple (NASDAQ: AAPL  ) . Under charismatic leader Steve Jobs, the Cupertino company transformed from a down-and-out wannabe computer-systems builder into a media-player giant, then a leading music-seller, and finally the smartphone-and-tablet powerhouse you see today. It's a classic rags-to-riches story that created a global powerhouse. The result: a 4,800% return.

Then there's coffee vendor Green Mountain Coffee Roasters (NASDAQ: GMCR  ) , which built an empire out of brilliant acquisitions. The company bought the rights to the Keurig single-serve coffee machines, along with the rest of the Keurig company, and that $160 million investment was the main reason for Green Mountain's 5,100% 10-year climb.

The next name is still a small cap. WisdomTree is an investment firm that specializes in managing exchange-traded funds. It may only be the fifth-largest player in this field, but it's an up-and-comer with a full head of steam. It manages more than $23 billion of investor assets nowadays, up from just $1 billion in 2006. That's good for an astounding 9,600% decade-long return.

The long-term investment king should be familiar to longtime Fool readers. Energy drink giant Monster Beverage (NASDAQ: MNST  ) , formerly known as Hansen Natural, crushed all comers with a 22,200% return. That's nearly 72% per year on a sustained 10-year run, though the pace slowed down considerably in the back half of this jaw-dropping jump. Monster shares have "only" tripled in the last five years, which sounds weak only when compared to the nearly 60-bagger return of the previous five years.

But you know what? That uneven performance is hardly unique to Monster. With the notable exception of Green Mountain, all of these huge gainers started out quickly and slowed down in recent years. Compare and contrast the squiggles on these two charts, detailing the front and back halves of the last decade:

AAPL data by YCharts.

AAPL data by YCharts.

As it turns out, it's far easier to beat the Dow by a ridiculous margin when you're a tiny, nimble upstart. Even Green Mountain's fantastic run is slowing down, and the stock trades well below all-time highs that were set in 2011. In a span of just nine months, the stock lost 80% of its value as the Keurig money-printing press appeared to break down. Of course, the stock has more than quadrupled again from those 2012 lows, but there's no such thing as a free lunch in the stock market. Every investment comes with a certain amount of risk -- even the strongest performers of years gone by.

So who's the next Monster Beverage or Green Mountain for the 10 years ahead? Nobody knows, but one thing is for certain: It's none of these best backward-looking stocks.

The next decade's biggest gainers will be today's no-name upstarts or beaten-down near-bankruptcy survivors. Out of this crop of long-term winners, Apple was by far the largest in 2003 with a $7.3 billion market cap. The other guys weren't even on the radar, uninvestable micro-caps one and all. Here's a snapshot of their market caps in the summer of 2003, with Apple removed for clarity:

GMCR Market Cap data by YCharts

If you want to win big, you just gotta start small.

Is Apple still a buy?
There's no doubt that Apple is at the center of technology's largest revolution ever and that longtime shareholders have been handsomely rewarded. However, there is a debate raging as to whether Apple remains a buy. The Motley Fool's senior technology analyst and managing bureau chief, Eric Bleeker, is prepared to fill you in on reasons to buy and reasons to sell Apple, as well as what opportunities remain for the company (and your portfolio) going forward. To get instant access to his latest thoughts on Apple, simply click here now.

Street View Puts Google in Crosshairs of U.K. Regulators

Should I Buy Aviva?

Jamie Dimon Makes His (Other) Stand

No, this isn't Dimon's stand to retain his dual roles of CEO and COB. We all know that stand has already been firmly taken and decisively won. But this other stand by the JPMorgan Chase (NYSE: JPM  ) chief involves something equally important to the health and welfare of the bank, if not more so.

We shall fight them in the courtrooms
At the Morgan Stanley Financials Conference on Tuesday, Dimon reportedly vowed to fight any lawsuits filed over last year's London Whale trading debacle: the botched derivatives trades that cost the superbank more than $6 billion to wind up.

According to Financial Times, he pledged to "fight to the end," adding: "There was no hiding, there was no lying, there was no bullshitting. Period." Paraphrased by the FT, Dimon also said: "There was no attempt to mislead investors by him or then chief financial officer, Doug Braunstein." 

Foolish bottom line
Dimon then went on to again apologize for the London Whale incident, in the direct, no-holds-barred fashion I remember seeing when the story first broke: "I don't know what more I can say. Bad strategy, badly vetted, badly monitored, badly controlled. Embarrassing. Terrible. Sorry." 

And what else can he do or say at this point? What else do investors want? Dimon delivered record net income for the first quarter of 2013, and the bank's third year in a row of record income. So throughout the entirety of the London Whale loss, the bank remained not just profitable, but record-profitable. He also guided JPMorgan through the financial crisis arguably better than any other CEO, and the bank's "fortress balance sheet" is a marvel to behold.

Several months after the London Whale affair came to light, Dimon said his goal was to have no one talking about it in 2013. Well, that's not the case. And there must be lawsuits in the pipeline, or at the very least stirrings of them, or Dimon likely would not have even broached the subject; Financial Times had nothing specific to say about it.

JPMorgan should fight any Whale-related lawsuits to the bitter end. If there was some hesitation in announcing to the world that the bank was on the bad end of massive derivatives bets going awry, it would have been mad to blurt it out without putting some thought into how the bank was going to handle and ultimately get out of them. To do anything else would have been irresponsible to shareholders, who might have been on the end of an even bigger loss had JPMorgan not handled this situation as carefully and skillfully as it did.

As a shareholder in any company, the first thing I want top management to think about when facing an unknown and potentially existential situation is to take care of the business: to keep the company safely intact and on track. By doing this, the company is taking care of me as a shareholder, as well.

Shareholders rightly and unanimously backed Dimon on his vitally important stand to stay on as chairman. They ought to back him on this vitally important stand, too.

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The One Chart You Need to See for Atwood Oceanics

There's no foolproof way to know the future for Atwood Oceanics (NYSE: ATW  ) or any other company. However, certain clues may help you see potential stumbles before they happen -- and before your stock craters as a result.

A cloudy crystal ball
In this series, we use accounts receivable and days sales outstanding to judge a company's current health and future prospects. It's an important step in separating the pretenders from the market's best stocks. Alone, AR -- the amount of money owed the company -- and DSO -- the number of days' worth of sales owed to the company -- don't tell you much. However, by considering the trends in AR and DSO, you can sometimes get a window onto the future.

Sometimes, problems with AR or DSO simply indicate a change in the business (like an acquisition), or lax collections. However, AR that grows more quickly than revenue, or ballooning DSO, can, at times, suggest a desperate company that's trying to boost sales by giving its customers overly generous payment terms. Alternately, it can indicate that the company sprinted to book a load of sales at the end of the quarter, like used-car dealers on the 29th of the month. (Sometimes, companies do both.)

Why might an upstanding firm like Atwood Oceanics do this? For the same reason any other company might: to make the numbers. Investors don't like revenue shortfalls, and employees don't like reporting them to their superiors.

Is Atwood Oceanics sending any potential warning signs? Take a look at the chart below, which plots revenue growth against AR growth, and DSO:

Source: S&P Capital IQ. Data is current as of last fully reported fiscal quarter. FQ = fiscal quarter.

The standard way to calculate DSO uses average accounts receivable. I prefer to look at end-of-quarter receivables, but I've plotted both above.

Watching the trends
When that red line (AR growth) crosses above the green line (revenue growth), I know I need to consult the filings. Similarly, a spike in the blue bars indicates a trend worth worrying about. Atwood Oceanics's latest average DSO stands at 50.4 days, and the end-of-quarter figure is 50.0 days. Differences in business models can generate variations in DSO, and business needs can require occasional fluctuations, but all things being equal, I like to see this figure stay steady. So, let's get back to our original question: Based on DSO and sales, does Atwood Oceanics look like it might miss its numbers in the next quarter or two?

I don't think so. AR and DSO look healthy. For the last fully reported fiscal quarter, Atwood Oceanics's year-over-year revenue grew 47.5%, and its AR grew 34.9%. That looks OK. End-of-quarter DSO decreased 9.5% from the prior-year quarter. It was down 6.7% versus the prior quarter. Still, I'm no fortuneteller, and these are just numbers. Investors putting their money on the line always need to dig into the filings for the root causes and draw their own conclusions.

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Add Atwood Oceanics to My Watchlist.

3 More FTSE 100 Shares With High Forecast Growth

LONDON --

BG Group
BG Group's  (LSE: BG  ) (NASDAQOTH: BRGYY  ) profits will soar as more oil and gas production comes onstream. Earnings per share is forecast to rise by 30% in 2013. Another 19% increase is expected next year. More modest dividend growth is expected, with the payout forecast to hit $0.31 in 2014.

There is very little difference in the oil and gas that BG produces versus other companies. This means that it has to take the price that is dictated by the global energy markets.

BG's future profits are thus dependent on the future price of energy, and there is little that they can do about it.

BG's forecast yield for the year is just 1.5%. That's not much compensation for holding shares in a company exposed to factors beyond its control.

Bunzl
Bunzl  (LSE: BNZL  ) is one of the elite dozen FTSE 100 companies that has reported rising EPS and dividends year on year for the last five years. This record has seen the shares rewarded with a premium rating. Bunzl shares are today trading at 20.5 times 2012 earnings.

More earnings growth is expected. Analysts have pencilled in EPS of 77.1 pence for 2013, rising to 81.8 pence the year after. The dividend is expected to be increased ahead of inflation this year and next. This pushes the 2014 yield on the shares to 2.6%.

While Bunzl may look expensive today, any market decline could present an opportunity to buy a top-quality share at an average price.

John Wood Group
John Wood Group  (LSE: WG  ) is an engineering services firm supplying expertise to the oil and gas industry. As such, its fortunes are aligned with the large producers'.

That has not stopped Wood Group from rewarding its shareholders handsomely. The company's dividend to shareholders has risen year on year for the last 10 years. Since 2007, the average rate of dividend increase has been 13.6%.

According to the consensus of analyst expectations, the market is forecasting 47% EPS growth this year, followed by a 13% rise in 2014. Despite the dividend increases in recent years, the payout is still well covered by earnings. A 24% dividend hike is expected this year, and a 14% rise for 2014.

If the growth is delivered, the shares look too cheap today on 11.0 times the 2014 estimate.

Buying shares in companies that can grow earnings ahead of economic growth could accelerate your wealth building. To help you identify the companies capable of long-term growth, our analysts have prepared a free report, "5 Shares for the Long Term." This report is totally free and will be delivered to your inbox immediately. Just click here to start reading this research today.

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How HSBC Holdings Measures Up As a GARP Investment

LONDON -- A popular way to dig out reasonably priced stocks with robust growth potential is through the "Growth At A Reasonable Price," or GARP, strategy. This theory uses the price-to-earnings to growth (PEG) ratio to show how a share's price weighs up in relation to its near-term growth prospects -- a reading below 1 is generally considered decent value for money.

Today I am looking at HSBC Holdings  (LSE: HSBA  ) (NYSE: HBC  ) to see how it measures up.

What are HSBC Holdings's earnings expected to do?

  2013 2014

EPS Growth	37%	7%
P/E Ratio	10.6	9.8
PEG Ratio	0.3	1.3

Source: Digital Look.

For the current year, HSBC is expected by City analysts to rebound in earnest from last year's 20% earnings per share (EPS) decline, although growth is expected to decelerate in 2014.

2013's rapid earnings growth leaves the company trading on a PEG ratio below the value marker of 1, although next year's EPS slowdown will see this move back above this measure. The bank currently deals just north of a price-to-earnings (P/E) ratio of 10 -- any number around or below 10 is classified as good value -- and is expected to drop under this figure in 2014.

Does HSBC Holdings provide decent value against its rivals?

  FTSE 100 Banks

Prospective P/E Ratio	14.7	42.1
Prospective PEG Ratio	4.7	0.9

Source: Digital Look.

HSBC comfortably outstrips the forward PEG averages of both the FTSE 100 and the banking sector, although a sub-1 reading for the banks still represents decent bang for your buck. As well, HSBC also surpasses both groups in terms of P/E readout.

HSBC qualifies as a sound GARP investment for the short term. And I reckon that the bank is a solid bet to keep marching skywards as its ambitious restructuring program, coupled with steady revenue growth in emerging markets, bolsters excellent earnings potential.

Earnings growth on the right track
In its latest investor update released last month, the bank cut its cost efficiency ratio target to the more realistic target around the "mid-50s" over the next three years, down from the 48% to 52% previously spelled out. However, HSBC said that it still expects return on equity to register between 12% and 15%.

The bank said that it plans to concentrate operations on "faster growing markets and Commercial Banking" through to 2016, building on the exceptional growth seen from these juicy developing markets in recent years. Indeed, the Asia-Pacific territory now accounts for nine-tenths of group profits, up from 60% in 2011.

As well, HSBC has delivered around $4 billion of cost reductions on an annual basis, achieved in part through the closure or divestment of 52 non-core or poorly performing businesses. I expect a more streamlined and focused HSBC to deliver solid earnings growth both now and over the longer term.

The expert's guide for intelligent investors
If you already hold shares in HSBC Holdings, check out this newly updated special report which highlights a host of other FTSE winners identified by ace fund manager Neil Woodford.

Woodford -- head of U.K. Equities at Invesco Perpetual -- has more than 30 years' experience in the industry, and boasts an exceptional track record when it comes to selecting stock market stars.

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3 FTSE Shares Crashing to New Lows

LONDON -- The FTSE 100 (FTSEINDICES: ^FTSE  ) is crumbling today under a couple of heavy weights: the U.S. Federal Reserve's plan to wind down its economic stimulus measures and the £27.1 billion hole in capital funding at U.K. banks revealed by the Prudential Regulation Authority. But even though the U.K.'s top-tier index has fallen 2.7% to 6,174 points with an hour left in trading, it's still a long way up from its 52-week low of 5,436 points set almost a year ago.

Sadly, the same can't be said for a number of individual companies. Here are three from the FTSE indexes plumbing new depths.

Antofagasta (LSE: ANTO  )
If you're looking for a share that's falling to new lows, you'd stand a high chance of finding one by simply picking a miner. Antofagasta is one of them, with its shares hitting a 52-week low of 830 pence today -- they were as high as 1,392 pence in January.

Antofagasta, whose primary business is copper mining, has been hit by falling prices of key industrial metals like copper, iron, and aluminum as demand from China falls off -- the most recent data from the People's Republic suggests an accelerating slowdown in June.

Forecasts for Antofagasta suggest a 22% fall in earnings per share this year and put the shares on P/E of 12.5.

Mulberry (LSE: MUL  )
Shares in fashion designer Mulberry Group are falling further, hitting a new 12-month low of 825 pence today -- and that's close to a 45% fall over the past year. The shares slumped when the firm issued a profit warning in March, then slipped further when the bad omen came to pass on annual results day a week ago.

There is an 18% rise in EPS forecast for the year to March 2014, but even that still puts the shares on a P/E of more than 23 -- and the same again for 2015 only drops it to 20. With dividend yields only around 1%, the shares could still be overpriced.

Fresnillo (LSE: FRES  )
It's not just miners of industrial metals that are suffering; those delving for precious metals are down too, as prices for the shiny stuff have also tumbled. Among them, Fresnillo fell to a new 52-week low today of 967 pence.

Engaged in the extraction of gold and silver in Mexico, with its main interest being the Fresnillo silver mine, the firm saw a 17% fall in EPS for the year to December 2012, and there's a further 11% drop forecast for this year. There's an expected dividend yield of a pretty average 3.2%, but the shares are on a demanding forward P/E of 20.

What's the best way to deal with share price falls? One way is to focus on dividends, which can be spent or reinvested, according to your needs. Whether you're investing for income or growth, good old cash is always welcome. And that's why I recommend the brand-new Fool report "The Motley Fool's Top Income Share For 2013," in which our top analysts identify a share they believe will provide handsome dividend income for years to come. It will only be available for a limited period, so click here to get your copy today.

Icahn's Zombie Offer for Dell Will Die

After two days of gains, the major indexes are little changed this morning as investors await the outcome of the Federal Open Market Committee's June policy meeting this afternoon. The S&P 500 (SNPINDEX: ^GSPC  ) and the narrower, price-weighted Dow Jones Industrial Average (DJINDICES: ^DJI  ) are down 0.17% each as of 10:05 a.m. EDT.

The macro view: Fed day is here at last!
The time for tea leaves, chicken bones, and tarot cards is over. After all the hullabaloo, the FOMC's June policy meeting draws to a close today, and we'll soon have their statement and a press conference by the head honcho himself, Dr. Ben Bernanke.

None of the talking heads know what the outcome of the meeting will be; my best guess is that the Fed will try to appease the market by emphasizing the conditions that remain to be met before it can begin reducing the pace of its $85 billion monthly asset purchases. If it takes a more hawkish stance, expect some afternoon volatility.

The micro view: Icahn's zombie offer for Dell
Legendary activist investor Carl Icahn is proving to be a thorn in the side of Silver Lake Partners and Michael Dell as they seek to take Dell (NASDAQ: DELL  ) public: Each time Dell's board rebuffs Icahn, he comes back with a new offer. This time, he is offering to pay $14 per share for 62% of the company.

Southeastern Asset Management, Dell's largest shareholder until Tuesday, appears to have thrown in the towel, agreeing to sell half its stake to Icahn (though it will nonetheless vote against the $13.65 per-share buyout from Silver Lake and Michael Dell on July 18). Southeastern had previously teamed up with Icahn on an alternative proposal.

Dell's board was not impressed, pointing out that this latest offer is not fully financed -- just like the two offers that preceded it. The zombies are always killed at the end of the movie, and I suspect Icahn's aspirations will share the same fate on July 18. The market thinks so, too: Excluding a spike yesterday, it's been two months since Dell's stock last traded above Silver Lake and Michael Dell's $13.65 per-share offer price. The duo are no heroes, but their deal will get done.

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Apple's Biggest Challenge May Be Apple

A recent report from Fast Company suggests that Apple (NASDAQ: AAPL  ) failed to follow the wants of its user base in developing its most recent series of products. The report details how social media, through sites like Facebook (NASDAQ: FB  ) , can provide critical information to companies about what customers want. While that message was delivered to Apple, it was actually reflected in products that run on Google's Android instead.

In the video below, Fool.com contributor Doug Ehrman discusses two paradigms for product development and why Apple may have to shift from one to the other, as well as where the company may be its own worst enemy.

Apple has a history of cranking out revolutionary products... and then creatively destroying them with something better. Read about the future of Apple in the free report, "Apple Will Destroy Its Greatest Product." Can Apple really disrupt its own iPhones and iPads? Find out by clicking here.

Editor's note: The author misspoke; Android devices have switched sooner to LTE, not LTD.

SkyWest: A Business Under Threat

It's no secret in the airline industry that 50-seat jets are on their way out. These little airplanes became very popular among U.S. carriers in the 1990s and early 2000s, as they are faster than turboprops and small enough to offer frequent service between hubs and small cities. However, they burn far more fuel per seat than larger regional jets and mainline aircraft, and also cost more per seat to maintain.

These were reasonable trade-offs in the 1990s, when jet fuel prices were well below $1 per gallon. In today's environment, when jet fuel routinely costs $3 per gallon, the additional fuel expense makes it uneconomic to fly these planes.

For that reason, Delta Air Lines (NYSE: DAL  ) announced a plan last year to reduce its 50-seat regional jet fleet to no more than 125 aircraft by the end of 2015, down from a high of 550 planes in 2008 and 2009. It is replacing that capacity with larger regional jets (mostly seating 76 passengers) and small mainline aircraft (110 seats). United Continental (NYSE: UAL  ) is also replacing many of its 50-seat jets with larger regional jets, although it remains well behind Delta in that process.

SkyWest: rolling with the punches
One of the big potential victims of this switch is regional carrier SkyWest (NASDAQ: SKYW  ) . Regional carriers fly regional jets and turboprops for legacy carriers, and SkyWest is the biggest player in this market. In fact, it is the largest operator of 50-seat (and smaller) regional jets in the world, with more than 500 such aircraft in service. With so much of its business tied to a disappearing market segment, it's clear that SkyWest is in a delicate situation.

It's particularly critical for SkyWest to adapt because while it does some flying for all of the legacy carriers, 97% of its capacity was allocated to United and Delta in 2012. Since both of these carriers are looking to dramatically slash their 50-seat jet fleets, SkyWest needs to move quickly into more stable market segments.

Moving up
SkyWest hopes to make the best of a bad situation by growing its fleet of large regional jets. The legacy carriers like these aircraft a lot more, because they have lower unit costs than 50-seat jets but are more comfortable for passengers and can accommodate a first-class cabin, which attracts business travelers. Since large regional jets provide higher value to the major airlines, they are willing to pay a premium for them, allowing the regional airlines to improve their operating margins.

Indeed, in the past year SkyWest has signed contracts with its top two customers, Delta and United, to operate large regional jets for them. However, other regional airlines may be positioned to gain share from SkyWest during the transition to large regional jets. For example, top competitor Republic Airways (NASDAQ: RJET  ) operates a similar number of large regional jets and turboprops as SkyWest; SkyWest currently has 185, versus 183 for Republic.

By contrast, Republic operates just 70 small regional jets, compared to SkyWest's more than 500. As a result, SkyWest is not likely to replicate its dominance of the 50-seat-jet market in the 70- to 76-seat-jet market. Moreover, since large regional jets have significantly more seats than the 50-seat jets they are replacing, airlines do not need as many of them. This means that SkyWest's fleet size will shrink dramatically, as will its need for pilots.

The company may be able to manage this downsizing through attrition, as the major airlines (which offer higher pay than regional airlines) have begun hiring again. However, it remains a significant potential risk factor to be aware of.

Long period of transition
SkyWest's heavy reliance on 50-seat jets means that it is a business facing significant threats. While the company has long-term contracts to fly these small planes for major airlines (primarily United and Delta), in some cases the contracts end before the aircraft are scheduled to be retired or returned to the lessor. This creates a risk of future write-downs if SkyWest is unable to dispose of these unwanted assets. Moreover, while the company dominated the 50-seat regional airline business, it is unlikely to replicate that dominance in the large regional jet category.

Republic Airways, which has lower exposure to the 50-seat-jet market, therefore seems like a safer bet for investors. Although, SkyWest does have the ability to manage this transition to make the best of the situation. In a companion piece that I will publish later this week, I will assess some of SkyWest's opportunities to fly into a better future.

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3 Things to Love About Reckitt Benckiser

Zoetis to Join S&P 500; First Horizon National, QLogic Moved to New Indices

McGraw-Hill Financial's S&P Dow Jones Indices is making changes in a trio of its signature products.

After the close of trading Friday, the S&P 500 will include Pfizer spinoff Zoetis (NYSE: ZTS  ) . The stock replaces First Horizon National (NYSE: FHN  ) , which is to find a new home on the S&P MidCap 400.

In turn, it bumps QLogic (NASDAQ: QLGC  ) from that index to the S&P SmallCap 600. Finally, QLogic's shift completely displaces Coldwater Creek (NASDAQ: CWTR  ) , which will no longer be on the S&P SmallCap 600.

The changes have come about because of Pfizer's attempt to unload its 80% stake in Zoetis, and the pharma giant is offering investors the opportunity to trade Pfizer shares for Zoetis shares. Zoetis engages in the discovery, development, manufacture, and commercialization of animal health medicines and vaccines.

Additionally, in the press release announcing the news, S&P Dow Jones Indices said that "First Horizon's total market capitalization is more representative of the mid cap market space, and QLogic's total market capitalization is more representative of the small cap market space."

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Dow Jumps Again but the Rally Could Be Short-Lived

Stocks moved up strongly for the second day in a row as investors continued to hope that the Fed would hold off on tapering its $85 billion monthly program when it gives an update on its interest rate and policy views tomorrow. The Dow Jones Industrial Average (DJINDICES: ^DJI  ) finished up 138 points, or 0.9%, on the news. The Fed's upcoming actions have been the market's obsession since the Open Market Committee's minutes were released a month ago, revealing that several Fed members were in favor of reducing the bond-buying program. That single-minded focus will hopefully come to an end after the Fed speaks tomorrow at 2 p.m.

Elsewhere, housing reports disappointed as May housing starts came in at 914,000, beneath estimates of 950,000, while building permits missed projections by 9,000, coming in at 974,000. Still, housing starts were up 7% from April's total, while building permits fell slightly from a month ago. The Consumer Price Index continued to show that inflation is well under control as prices went up just 0.1% in May vs. expectations of 0.2%.

Turning to the big board, General Electric (NYSE: GE  ) led all blue chips as it announced a new Industrial Internet Analytics Platform (say that five times fast). The industrial powerhouse is teaming up with Amazon.com to put a huge amount of data online on products such as jet engines and gas turbines so it can be analyzed. The cloud-enabled "Industrial Internet" represents a market that could be worth hundreds of billions of dollars by the end of the decade, according to some analysts. GE shares ended up 2.4% on the day.

A day after it was the worst performer on the Dow, Verizon (NYSE: VZ  ) shares jumped 1.7% as the telecom giant confirmed its interest in buying Wind Mobile, Canada's No. 4 wireless carrier. The move will likely by encouraged by the Canadian government, which has made efforts to break the three-company oligopoly that controls 90% of the Canadian market. It will also give Verizon an opportunity to claim more subscribers in the country of 30 billion.

Elsewhere, UnitedHealth (NYSE: UNH  ) shares got a bump after Deutsche Bank raised its price target on the insurance giant from $60 to $63 and maintained its hold rating. Deutsche Bank recently met with UnitedHealth's CEO and VP of Investor Relations, and said it believed the insurance giant had a strong long-term position. UnitedHealth finished up 2% and hit a 52-week high on the news. Considering that the insurance company was downgraded yesterday to a hold by Standpoint Research, the two items seem to be a wash.

Gildan Activewear Makes an Acquisition

Look Who Else Is Flying Delta These Days

Delta Air Lines (NYSE: DAL  ) is one of the largest and most successful U.S. airlines today. In 2012, the company carried more than 100 million passengers on the way to earning an adjusted profit of $1.55 billion. This strong momentum has led to enviable gains for shareholders: Delta stock has nearly doubled since the beginning of December.

Delta Stock Chart, 12/3/12-6/14/13, data by YCharts

Among the many passengers flying Delta last year, one may have escaped notice: top competitor United Continental (NYSE: UAL  ) . United, which has performed far worse than Delta recently -- it earned an adjusted profit of just $589 million in 2012 despite being similar in size to Delta -- has nevertheless managed to ride Delta's coattails to stock greatness in the last six months.

Delta vs. United Continental Stock Performance, data by YCharts

While United's stock has not performed quite as well as Delta's, a 65% gain is nothing to sneeze at. Clearly, Mr. Market is extrapolating from Delta's success and assuming that United will be able to achieve similar profitability soon, particularly now that it has nearly finished integrating United and Continental. However, Mr. Market (and United investors) may be in for a surprise, because while Delta is the real deal, United's results will not be able to support its high stock price.

Disappointment ahead
United's stock has been soaring despite a weak performance in the first half of 2013. The company posted an adjusted loss of $0.98 per share in Q1. Capacity reductions drove a healthy 5.9% unit revenue increase, but this was more than offset by a 6.5% increase in unit costs. Cost growth has moderated in Q2 as jet fuel prices have fallen, but unit revenue has simultaneously taken a turn for the worse, decreasing 0.5% in April and a similar amount in May.

Coming into Q2, industry analysts expected United to return to strong profit growth, but they have since been forced to backtrack due to the company's weak revenue performance. The average analyst EPS estimate for Q2 has dropped precipitously from $1.98 60 days ago (around the time of United's Q1 earnings report) to $1.42 today.

Strangely, while lowering their estimates for this quarter, analysts have actually raised their estimates for Q3 EPS from $2.21 to $2.31 over the past 60 days. Q4 EPS estimates have risen even more sharply, to approximately $0.65, which would be a big swing from last year's $0.58 per share loss in the fourth quarter.

In essence, Wall Street analysts are softening the blow of lower earnings expectations for the current quarter by raising expectations for future quarters. However, this is just likely to lead to an even bigger disappointment for investors down the road. In order to meet full-year earnings expectations, United would need to achieve nearly 500 basis points of year-over-year margin growth in the second half of 2013.  This is not likely to happen.

Based on United's cost projections, unit cost growth may reverse in the second half of this year if fuel prices continue to retreat. However, the company would still need robust unit revenue growth to generate 500 basis points of margin expansion. Yet whereas United cut capacity by 4.9% in Q1 and is on pace to cut capacity by more than 2% in Q2, the company plans to increase capacity somewhat in the second half of the year. While this is helping reduce unit costs, it will also create a unit revenue headwind.  This will prevent anything beyond modest unit revenue growth.

Be careful out there!
Analysts are still projecting a fairly rosy profit scenario for United this year, despite its continuing weak performance. While Delta recently projected a Q2 adjusted operating margin of 10%-11% -- a healthy improvement from last year's 9.1% result -- United appears poised to duplicate its 7.9% adjusted operating margin from Q2 2012.

Delta's margin advantage of 200-300 basis points over United appears sustainable based on the company's lower, projected-cost growth and its strategic initiatives to boost its corporate revenue share, particularly in New York. That margin advantage is equivalent to roughly $1 billion per year in additional profit for Delta!

United stock has been able to log big gains in the past six months, largely thanks to Delta's success, but ultimately United will have to produce higher profitability to keep the stock afloat. However, the company has no clear path to replicating Delta's superior margins. As a result, United's stock looks very vulnerable over the next year or so.

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!

U.S. Stock-Index Futures Gain Before Housing Data, Fed

U.S. stock futures rose, indicating the Standard & Poor's 500 Index will gain for a second day, as investors awaited data that may show housing starts climbed and the start of a Federal Reserve policy meeting.

Walter Energy Corp. advanced 4.3 percent in New York pre-market trading York as Morgan Stanley said the coal miner's shares may triple.

Futures on the S&P 500 (SPX) expiring in September increased 0.2 percent to 1,637.5 at 6:30 a.m. in New York. The index climbed 0.8 percent yesterday as data showed manufacturers in the New York area felt more optimistic in June and as confidence among U.S. homebuilders rose. Contracts on the Dow Jones Industrial Average gained 32 points, or 0.2 percent, to 15,153 today.

"U.S. companies are doing really quite well," James McCaughan, chief executive officer of Principal Global Investors LLC, told Mark Barton on Bloomberg Television. "There's low energy costs, high productivity, an improving housing market. All that means that U.S. companies, particularly domestics, are doing pretty well. It's easy to see a situation for the rest of the year where U.S. equities continue to rise."

The Federal Open Market Committee begins a two-day policy meeting today, with Fed Chairman Ben S. Bernanke holding a press conference tomorrow. Bernanke suggested last month that the central bank could start to taper bond purchases if the economy improves in a "real and sustainable way."

'Quite Clear'

Bernanke has "actually been really quite clear the last two or three meetings," McCaughan said. "He's talked about tapering coming in on some modest employment improvement. He's talked about a 6.5 percent unemployment rate as being the time to normalize and stop the asset purchases."

A Commerce Department report at 8:30 a.m. in Washington may show housing starts rose in May. Builders broke ground on 950,000 houses at an annualized rate, up from April's 853,000 pace, according to the median estimate of economists surveyed by Bloomberg.

Walter Energy, a U.S. miner of coal used in steelmaking, gained 4.3 percent to $12.20. Morgan Stanley said the stock may climb to around $35 even if the company increases its share count by a third. The company plunged 20 percent in the past two days as it canceled a plan to refinance $1.55 billion of loans.

Top 5 Freight Stocks To Buy Right Now

The production rate for Boeing's (NYSE: BA  ) 747-8 plane has been reduced from two planes per month to 1.75, the company announced today, citing "lower market demand for large passenger and freighter airplanes."

Boeing's assessment of global market conditions, particularly for large airplanes, is that the air cargo market will resume growing in 2014. As for current market demand and the manufacturing of 747-8 planes, Boeing said it will "continue to monitor market conditions and their effect on production rates moving forward." Boeing projects as many as 790 large planes, such as the 747-8 Intercontinental, will be delivered worldwide over the next 20 years.

Boeing estimates the first 747-8 plane affected by the new production schedule will be delivered early next year. The 12.5% monthly decline in production of the 747-8 is, "not expected to have a significant financial impact," Boeing said. To date, there are 110 orders for passenger and cargo versions of the 747-8, 46 of which have been delivered, according to Boeing.

Top 5 Freight Stocks To Buy Right Now: Laramide Resources Ltd (LAM.TO)

Laramide Resources Ltd. engages in acquisition, exploration, and development of mineral properties in Australia and the United States. The company primarily explores for uranium and gold. It principally owns 100% interest in the Westmoreland uranium project that covers an area of approximately 50 kilometers located in Queensland, Australia. The company is headquartered in Toronto, Canada.

Top 5 Freight Stocks To Buy Right Now: Tele Norte Leste Participacoes S.A.(TNE)

Tele Norte Leste Participacoes S.A. provides integrated telecommunication services in Brazil. It operates in three segments: Fixed-Line Services, Mobile Services, and Other. The Fixed-Line Services segment offers local fixed-line, long-distance, and fixed-line data transmission services, as well as interconnections to its fixed-line network. The Mobile Services segment provides mobile services, including voice, mobile data communications, and other value-added services, as well as interconnections to its mobile network. The Other segment offers pay television, Internet service provider, Internet portal, mobile phone payment system, and call center services. The company also offers data transmission services comprising broadband access. It serves residential customers, governmental agencies, and small, medium, and large companies. The company was founded in 1972 and is headquartered in Rio de Janeiro, Brazil. Tele Norte Leste Participacoes S.A. is a subsidiary of Telemar Pa rticipacoes S.A.

Hot Undervalued Stocks To Watch For 2014: Yell Group(YELL.L)

Yell Group plc operates in the classified advertising market in the United Kingdom, the United States, Spain, Argentina, Chile, and Peru. The company provides business leads to advertisers through a range of channels, which include classified directories, local guides, online local search, search engines, operator assisted phone services, and mobile-specific applications. It offers Yellow Pages directories and Yell.com online advertising services in the United Kingdom; and Yellow book printed directories and the yellowbook.com online classified directory services in the United States. The company also provides its services through Paginas Amarillas and Paginas Blancas in Spain; and a range of printed and online directory services in Argentina, Chile, and Peru. In addition, it offers operator-assisted telephone directory services in Spain and Chile; and design and production of multimedia advertising services in the United Kingdom, the United States, Spain, India, the Phili ppines, and Peru. Yell Group plc was founded in 1930 and is headquartered in Reading, the United Kingdom.

Top 5 Freight Stocks To Buy Right Now: eServGlobal Ltd(ESV.AX)

eServGlobal Limited engages in the provision of mobile money solutions and value added services to mobile and financial service providers in the Middle East, the Asia Pacific, Europe, Africa, and Central and South America. It offers mobile money solutions, including PayMobile platform, a market proven solution that provides various aspects of mobile money usage from voucher and electronic recharge, and money and commerce solutions; and HomeSend, a mobile-centric international remittance hub endorsed by the GSM association that enables service providers comprising financial institutions to offer international money and air-time transfer, as well as access to a hubbing and managed service through a single technical and commercial interface. The company also offers value-added services, such as PromoMax that allows telecom service providers to build targeted, personalized, diversified and timely promotions, and loyalty programs; PRIME, a next generation framework for value-ad ded services; Mailis, a messaging solution, which enables service providers to deliver voice mail, unified mail, and video mail to retail and business customers; and IVR, a multi-lingual solution. In addition, it provides software as a service; and professional, training, and support services, as well as offers operational services for operators. The company was founded in 1991 and is headquartered in Paris, France.

Top 5 Freight Stocks To Buy Right Now: Broadcom Corporation(BRCM)

Broadcom Corporation designs and develops semiconductors for wired and wireless communications. It provides a portfolio of system-on-a-chip (SoC) and software solutions for the manufacturers of computing and networking equipment, digital entertainment and broadband access products, and mobile devices, which enable the delivery of voice, video, data, and multimedia content to the home, office, and mobile environment. Its broadband communications products include cable modem SoCs; femtocell SoCs; MPEG/AVC/VC-1 encoders and transcoders; xDSL, passive optical network, and cable modem customer premises equipment and central office solutions; powerline networking SoCs; digital cable, direct broadcast satellite, terrestrial, and Internet protocol (IP) set-top box integrated receiver demodulators; high definition television and standard definition TV SoCs; and Blu-ray disc SoCs. The company?s mobile and wireless products comprise Wi-Fi and Bluetooth SoCs, wireless connectivity com bo chips, global positioning system SoCs, multimedia processors, applications processors, power management units, VoIP SoCs, mobile TV SoCs, and near field communications tags. Its infrastructure and networking products include Ethernet copper transceivers, Ethernet controllers and switches, backplane and optical front-end physical layer devices, security processors and adapters, and broadband processors. The company markets and sells its products through direct sales force, distributors, and manufacturers? representatives in the United States, as well as through regional offices, and a network of independent distributors and representatives in Asia, Australia, Europe, and North America. The company was founded in 1991 and is headquartered in Irvine, California.

Advisors' Opinion:

• [By Harding]

  Broadcom Corporation (BRCM) is the best pick for this industry due to its historic success in outperforming its peers, shown by a 15% increase in revenue as opposed to an industry average of 4%. Broadcom’s earnings also grew by a tremendous 16%. Its stock is currently trading at $30.10 and is expected to reach a price target of $45. Revenue is expected to grow by nearly 8%, as compared to a 1% increase in the related industry. Its stocks have traded in a 5 2-week range of $29.17 and $46.89. Broadcom’s market capitalization stands at $16.22 billion and its P/E ratio of 10.6x is expected to remain fairly consistent over the next year. Earnings per share of $2.7 were posted for 2011.

10 FTSE 100 Shares to Soar in a Market Revival

LONDON -- You don't need to be investing for long to understand that some shares are a wilder ride than others. There is a statistical measure for this: the "beta." This encapsulates how volatile a share has been compared with the index.

Here are the FTSE 100's 10 largest high-beta shares.

Company

Price (pence)

Beta

Yield (forecast, %)

P/E (forecast)

Market Cap (million pound)

Lloyds Banking  (LSE: LLOY  )	61	2.2	0.0	13.5	43,595
Barclays  (LSE: BARC  )	298	2.5	2.5	8.1	38,293
Royal Bank of Scotland  (LSE: RBS  )	316	2.6	0.0	14.4	35,430
Anglo American	1426	1.8	3.8	11.1	19,875
Legal & General  (LSE: LGEN  )	171	1.8	5.0	11.1	10,106
Antofagasta	904	1.8	2.7	13.1	8,912
ITV	137	1.8	2.4	13.4	5,379
GKN	302	2.3	2.6	11.3	4,933
Weir  (LSE: WEIR  )	2162	1.7	1.9	14.2	4,607
Vedanta Resources	1212	2.7	3.1	10.0	3,230

I expect that each of the five shares below will continue exaggerating the market's movements and produce big gains if the bull market resumes.

Barclays
After starting the year at 262 pence, Barclays shares rose to a high of 333 pence when the FTSE 100 peaked in May. Since then, the shares have dropped back to 297 pence.

It is often argued that Barclays shares are a geared play on the success of the market. Price movement so far this year would seem to bear this out. However, Barclays could generate big returns for shareholders even in a lackluster market.

That is because, at less than 300 pence, Barclays shares are very cheap. Barclays is forecast to make 36.6 pence of EPS (earnings per share) in 2013. That puts the shares on a 2013 P/E of 8.1. The average FTSE 100 stock trades on a P/E of 13.6. Earnings and dividends are forecast to rise further this year and next.

Royal Bank of Scotland
The market was shocked recently by the announcement of RBS boss Stephen Hester's planned departure. Before the news broke, the shares traded at 326 pence. Two days later, they closed at 315 pence.

Hester has been key to the bank's rehabilitation. As a shareholder in RBS, I am very disappointed to be losing his talents. Now, RBS needs to find another experienced bank boss that the market has confidence in. You don't find those on Craigslist...

Shareholders will be hoping that the conduct of the board and government does not prevent RBS finding a capable banker that is willing to take the job.

RBS is forecast to make 31.4 pence of EPS in 2014. That equates to a 2014 P/E of just 10.1.

Lloyds Banking Group
Lloyds shares have remained at around their peak despite recent market falls. On Friday, the shares closed at 61.3 pence, hardly moved from their recent two year high of 63 pence.

Lloyds is much closer to privatization than RBS. Its business is also considered less dependent on investment banking revenues than Barclays. Perhaps as a result, its shares trade at a higher rating.

Lloyds shares are today available at 13.5 times forecasts for 2013, falling to 10.4 times the expected number for 2014. As its balance sheet improves, Lloyds also looks increasingly likely to begin paying shareholder dividends.

Unlike RBS and Barclays, Lloyds shares are trading at a premium to the company's net tangible asset value.

Weir Group
Glasgow-based Weir Group provides engineering services to the mining, oil and gas, and power industries. Customers in these sectors have little control of the price that they receive for their product. As a result, Weir is supplying to a customer base that must trade its way through market boom and bust. This impacts market perceptions of Weir's own prospects. The result is a high-beta share price.

A quick look at Weir's five-year record suggests that the market may not be giving the company due credit. Weir is one of those exceptional companies that has managed to grow sales, profits, and dividends year on year for the last five years.

More growth is expected in the next two years, leaving the shares on a 2014 P/E of 12.9.

Legal & General
Shares in Legal & General have lost 10% since the recent market peak. The company owns a substantial investment management business. As such, the market often bids up the L&G share price during market rises and rushes to sell when the FTSE steps back.

That seems unfair, given the company's robust track record. Even in the depth of the financial crisis, L&G continued to pay a dividend. Only in 2008 did the company record a material decline in earnings.

At 171 pence, Legal & General is selling at 11.1 times broker forecasts for 2013. Further growth is expected the next year, pushing that P/E down to 10.4. A dividend of 8.5 pence per share is forecast this year, meaning a prospective yield of 5%.

If you are looking for strong, successful companies like Legal & General that can thrive through a business cycle, then check out the latest report from our team of experts here at The Motley Fool. "5 Shares to Retire On" gives the lowdown on our team's top picks for the long term. Just click here to get your copy of this free report today.

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Prospect Capital Sets 4 Months of Dividends

Internet Streaming Is Crucial for Amazon

Because Amazon (NASDAQ: AMZN  ) Instant Video is bundled with Amazon Prime, the goal for Amazon.com isn't necessarily the same as it is for Netflix (NASDAQ: NFLX  ) . For Amazon, it's more about gathering data on its users and unlocking insights into customer behavior. In this video, Fool contributor Steve Heller explains why he believes Internet streaming is extremely important to Amazon, despite it being a relatively small business for the online giant.  

Everyone knows Amazon is the king of the retail world right now, but at its sky-high valuation, most investors are worried it's the company's share price that will get knocked down instead of competitors'. The Motley Fool's premium report will tell you what's driving the company's growth, and fill you in on reasons to buy and reasons to sell Amazon. The report also has you covered with a full year of free analyst updates to keep you informed as the company's story changes, so click here now to read more.

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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.

Hot Supermarket Stocks To Watch For 2014

LONDON -- Company news is starting to pick up again after a lull over Easter. We don't have a great volume of updates expected, but we should be hearing from a handful of top�FTSE 100�firms. Here are three popular companies due to enlighten us next week:

Tesco
Next Wednesday, April 17, brings us one of the most hotly awaited company announcements of 2013 so far -- full-year results from�Tesco� (LSE: TSCO  ) . (NASDAQOTH: TSCDY  ) After the U.K.'s biggest supermarket had a weak Christmas in 2011, and saw its share price slump as a result,�Warren Buffett�famously bought in big. And he's done well so far -- from a 52-week low of 295 pence back in June last year, Tesco shares are now back up 30%, to 385 pence.

January's update told us of significantly better Christmas and New Year trading this time, with group sales for the six weeks to Jan. 5 up 3.5% (3.9% excluding petrol), and we heard that the U.K. in-store turnaround plan was bearing fruit. Since then, Tesco has announced the purchase of the Giraffe restaurant chain, buying up 49 restaurants for a little under 49 million pounds.

Hot Supermarket Stocks To Watch For 2014: Anthera Pharmaceuticals Inc.(ANTH)

Anthera Pharmaceuticals, Inc., a development stage biopharmaceutical company, focuses on developing and commercializing therapeutics to treat diseases associated with inflammation, including cardiovascular and autoimmune diseases. Its primary product candidates include varespladib methyl (A-002), which has completed its Phase 2 clinical studies for the treatment of acute coronary syndrome; varespladib sodium (A-001) that is in a Phase 2 clinical study for the prevention of acute chest syndrome associated with sickle cell disease; and A-623, which has completed Phase 1 clinical studies for the treatment of B-cell mediated autoimmune diseases. The company has license agreements with Eli Lilly and Company, and Shionogi & Co., Ltd. to develop and commercialize secretory phospholipase A2 or sPLA2 inhibitors for the treatment of cardiovascular disease and other diseases; and Amgen Inc., to develop and commercialize A-623. Anthera Pharmaceuticals, Inc. was founded in 2004 and is headquartered in Hayward, California.

Hot Supermarket Stocks To Watch For 2014: FairPoint Communications Inc.(FRP)

FairPoint Communications, Inc. provides communications services in rural and small urban communities primarily in northern New England. The company offers an array of services, including high speed data, Internet access, voice, television, and broadband product offerings to residential, business, and wholesale customers. It provides local calling services, such as basic local lines, local private lines, and switched data services; data services comprising private line special access, fast packet, optical, Ethernet, and IP services; and Internet services, including IP addresses obtaining services, basic Web site design and hosting, domain name, content feeds, and Web-based email services, as well as carrier Ethernet services. In addition, the company offers network transport services, such as access services, which primarily include DS-1 and DS-3 services; and high speed digital services that primarily comprise Ethernet-based services provisioned over fiber and copper facil ities. Further, it provides billing and collection services for interexchange carriers; directories, which offer white page, yellow page, and community information listings; public (coin) telephone, and the sale and maintenance of customer premise equipment; and video services to its customers by reselling DirectTV content, and cable and IP TV video-over- digital subscriber lines. As of December 31, 2011, the company operated approximately 1.3 million access line equivalents in 18 states. It provides cellular backhaul connectivity to approximately 1,600 towers. FairPoint Communications, Inc. is headquartered in Charlotte, North Carolina.

5 Best Gold Stocks To Invest In Right Now: Mazorro Resources Inc (MZO.V)

Mazorro Resources Inc., an exploration stage junior mining company, engages in the identification, acquisition, evaluation, and exploration of mineral properties. It primarily focuses on the exploration of gold properties in Quebec, Canada. The company has an option agreement to acquire a 100% interest in Dalquier property that includes 85 claims covering an area of 3,500 hectares located in the township of Dalquier, Quebec; and an option agreement to own a 75% interest in the Figuery property comprising 55 claims located in the Figuery, Landrienne, and Duverny Townships of Quebec. It also has an option agreement to earn a 70% interest in the Lapaska property consisting of 26 claims covering an area of approximately 352 hectares located in the Louvicourt Township of Quebec. Mazorro Resources Inc. was incorporated in 2007 and is based in Manotick, Canada.

Hot Supermarket Stocks To Watch For 2014: Compuware Corporation(CPWR)

Compuware Corporation provides software and Web performance solutions, professional services, and application services in the United States, Europe, and Africa. The company?s software products consist of Mainframe, Vantage, Changepoint, and Uniface product lines. Its Mainframe product line includes File-AID, Xpediter, Hiperstation, Abend-AID, and Strobe used for application analysis, testing, defect detection and remediation, fault management, file and data management, data compliance, and application performance management in the IBM z/OS environment. The company?s Vantage products provide an end-to-end approach for managing application performance by combining end user experience monitoring, business service management, and application performance monitoring; Changepoint products are management and professional services automation solutions that address the needs of executives in technology companies, enterprise IT, and professional service organizations; and Uniface i s an application development environment for building, renewing, and integrating the enterprise applications. It also offers Web application performance management services, which are marketed under the Gomez brand name, are used by enterprises to test and monitor their Web and mobile applications while in development and after deployment. In addition, the company provides professional services, such as implementation, consulting, and training services, as well as various IT services for mainframe, distributed, and mobile environments; and application services, which are marketed under the Covisint brand name that offers SaaS platform providing industry-specific solutions for organizations in the automotive, healthcare, and energy markets, as well as provides support services. The company serves IT departments of various commercial and government organizations. Compuware Corporation was founded in 1973 and is headquartered in Detroit, Michigan.

Advisors' Opinion:

• [By James K. Glassman]

  James Roumell, star of the Wall Street Journal's late, lamented stock-pickers-versus-dartboard contest, tells me that "if we had to pick one idea right now, it would be Compuware (CPWR)." Its primary business is software for large, mainframe computers, but it also has several interesting subsidiaries, including Gomez, a leader in Web analytics, and Covisint, a specialist in delivering health-care information. Roumell says he is impressed with both Compuware's cash flow and its potential as a takeover candidate.

MiMedx Diabetes Product Produces Positive Test Results

MiMedx Group (NASDAQ: MDXG  ) , announced Monday that results from a randomized controlled trial for its EpiFix wound-care allograft have been published in the International Wound Journal. 

The clinical trial included patients with diabetic foot ulcers of at least four weeks' duration without infection, having adequate blood supply. Patients were broken into two groups, one receiving standard care alone, the other standard care plus EpiFix. After four and six weeks of treatment, the overall healing rate of patients treated with EpiFix was 77% and 92%, respectively, whereas standard care healed 0% and 8% of the wounds, respectively. The rate of healing with EpiFix exceeded that of standard treatment as well.

According to the World Health Organization, diabetes will affect 366 million people worldwide -- up from 171 million in 2000. Approximately 25% of diabetics will develop a chronic non-healing ulcer over their lifetime. Diabetic foot ulcers occur in 15% of all patients with diabetes and precede 84% of all lower leg amputations.

EpiFix makes use of dehydrated human amniotic membrane to heal these ulcers. At room temperature, EpiFix can have a shelf life of five years and retains the properties of the natural membrane. Although there are similar, competing products on the market, the superior performance of EpiFix compared with rival products (not yet proven by published studies) could help to make the company a market leader in the treatment of diabetic foot ulcers.

Microsoft Windows 8 Finally Goes Small

It was inevitable: Microsoft (NASDAQ: MSFT  ) had no choice but to pursue the small-sized tablet segment if it hopes to be relevant. Consumers are increasingly voting with their wallets that smaller tablet form factors are the way to go. Apple (NASDAQ: AAPL  ) has now jumped into that market segment with the iPad Mini, an implicit concession that Steve Jobs was wrong when he proclaimed that the perfect tablet size was around 10 inches.

Thus far, Microsoft's forays into the tablet market have been with larger devices, including its own Surface tablet that sports a 10.6-inch display. Most Windows 8 and Windows RT devices made by OEMs have also been in the full-sized segment. That's all changed with the Acer Iconia W3 that was just unveiled at Computex Taipei.

The Iconia W3 is being billed as the "industry's first 8-inch Windows 8 tablet," and its 8.1-inch display will compete directly with the iPad Mini's 7.9-inch screen. An Intel (NASDAQ: INTC  ) Atom chip is found inside, which promises all-day battery performance. Intel has been making headway in tablet wins, including scoring a spot in Samsung's new Galaxy Tab 3 10.1 (also with an Atom processor). Intel's pricier chips also contribute to the higher price of the Iconia W3, which will retail for $379.

Iconia W3. Source: Acer.

Microsoft is also exploring a new strategy of bundling in a basic version of Office with smaller devices. That may give the Iconia W3 a leg up in productivity against the iPad Mini, but the display's resolution is unimpressive at 1,280 x 800. Mind you, that's higher than the iPad Mini's current 1,024 x 768, but this is 2013 and Apple is expected to move to Retina iPad Minis in a matter of months. Beyond just resolution, the Iconia W3 has poor viewing angles and color reproduction, according to The Verge.

The Iconia W3 may not have a good shot at competing with the iPad Mini, but more importantly the device signifies Windows 8's entry as a platform into the small-sized segment. This is a much bigger deal for Microsoft than it is for Acer. Now the software giant needs to release a 7-inch Surface.

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.

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Best Wireless Telecom Companies To Own For 2014

This week, the U.S. department of Energy announced that Tesla Motors (NASDAQ: TSLA  ) had repaid the�remaining�balance on its $465 million loan. The loan, part of the DOE's Advanced Vehicle Technology Manufacturing program, was returned to U.S. government coffers -- with interest -- nine years early. That may sound like big money, but $465 million is pennies in comparison with the $34 billion the DOE has committed in loans for various alternative-energy projects and the development of hybrid and electric vehicle manufacturing.�

There are few things that polarize the American public more than having the government provide financial assistance to private industry. The label "crony capitalism" is a popular phrase among critics. Providing federally backed loans to private industry does pose a deep dilemma regarding the interaction of governments and the free market. For a moment, though, let's set aside the philosophical debate and look at the DOE's program pragmatically. Certainly, the U.S. doesn't want to�lose�money on these investments, but it's not out there looking to make a huge monetary return, either. Let's look at two key reasons the Department of Energy might not be�committing�the free-market�heresy that many claim it is.

Best Wireless Telecom Companies To Own For 2014: Capita Grp(CPI.L)

Capita PLC provides business process outsourcing and professional services in the United Kingdom and Ireland. The company operates in five divisions: Life and Pensions Services; Integrated Services; Insurance and Investor Services; Professional Services; and ICT, Health, and Business Services. The Life and Pensions Services division provides life and pensions outsourced administration services comprising open and closed books of individual life and pensions policies and occupational pension schemes. The Integrated Services division offers central government contracts, property consultancy, contact centers, and portfolio of human resources (HR) services consisting of resourcing business, integrated HR solutions, HR and payroll administration, learning and development, and outplacement services. The Insurance and Investor Services division provides financial services to corporate and consumer markets, which include share registration, fund administration and insurance policy and claims administration, financial advisory and treasury services, insurance services for motor, and household and pet insurance products, as well as trust administration and fiduciary services across a range of tax jurisdictions. The Professional Services division offers children services; outsourced administration services; strategic advice and interim support services; and information and communications technology (ICT), and software solutions and support. The ICT, Health, and Business Services division provides health, business travel administration, hotel booking, meetings management, conferences, and consulting services. It also offers radio network services, communication systems to the emergency services and to central and local governments, and customer services management to clients related to customer contact administration and fulfillment activities. The company was founded in 1984 and is headquartered in London, the United Kingdom.

Best Wireless Telecom Companies To Own For 2014: Triangle Energy(global)

Triangle Energy (Global) Limited engages in the exploration and production of gas primarily in Indonesia. The company holds a 100% working interest in the production sharing contract of the Pase Block consisting of 3 production wells covering an area of approximately 922 square kilometers located in Aceh province, north Sumatra, Indonesia. It also holds a 20% interest in Reid?s Dome gas field, which covers an area of 181 square kilometers located in the Bowen Basin, Queensland. The company is based in Cottesloe, Australia.

Top 10 Consumer Service Stocks For 2014: U.S. Dollar Index(DX)

Dynex Capital, Inc. operates as a mortgage real estate investment trust (REIT). It invests in residential and commercial mortgage-backed securities issued or guaranteed by a federally chartered corporation, non-agency mortgage-backed securities, and securitized mortgage loans, as well as unsecuritized single-family and commercial mortgage loans. The company finances its investments through a combination of repurchase agreements, and non-recourse collateralized financing, such as securitization financing Dynex Capital, Inc. has qualified as a REIT under the Internal Revenue Code. As a REIT, it would not be subject to federal income tax, provided it distributes at least 90% of its taxable income to its shareholders. The company was founded in 1987 and is based in Glen Allen, Virginia.

Best Wireless Telecom Companies To Own For 2014: Bluefly Inc.(BFLY)

Bluefly, Inc. operates as an Internet retailer. The company, through its e-commerce Web site, Bluefly.com, sells approximately 350 brands of men?s and women?s designer apparel, and accessories at discount prices in the United States. It also focuses on selling fashionable prescription eyewear through an e-commerce Web site. The company was formerly known as Pivot Rules Inc. and changed its name to Bluefly, Inc. in October 1998. Bluefly, Inc. was founded in 1991 and is based in New York, New York.

Best Wireless Telecom Companies To Own For 2014: Innovative Composites Intl Inc(IC.V)

Innovative Composites International Inc. manufactures and sells lightweight structural products utilizing fiber reinforced thermoplastics for use in the prefabricated modular housing, transportation and cargo containers, ballistics, textiles, and fire prevention industries. The company offers prefabricated modular housing products, such as The Cabin, a 2-bedroom modular home starting at 512 square feet for 1-4 occupants; The Bungalow, a 880 square feet home that includes 3 bedrooms, a living room, kitchen, 4-piece bath, and additional storage area for 2-6 occupants; The Lodge, a 1500 square feet living space, featuring 3 large bedrooms, two 4-piece baths, kitchen, living room and dining room, and a large front porch to accommodate 2-6 occupants; and emergency and remote shelters. It also provides Structure-Lite composite panels, including containers and truck body panels for use in transportation and marine industries. In addition, the company offers a line of environmenta lly friendly fire inhibiting and suppressing products under the Hero 451 brand, which include BlanketHero, a fire controlling blanket; and EvergreenHero, a prestinguisher that protects and preserves Christmas trees and greens from catching fire. Innovative Composites International Inc. is headquartered in Toronto, Canada.

Best Wireless Telecom Companies To Own For 2014: Primerica Inc.(PRI)

Primerica, Inc., together with its subsidiaries, engages in the distribution of financial products on behalf of third parties to middle income households in the United States and Canada. The company operates in three segments: Term Life Insurance, Investment and Savings Products, and Corporate and Other Distributed Products. The Term Life Insurance segment underwrites term life insurance products. The Investment and Savings Products segment distributes mutual funds, variable annuities, fixed annuities, and segregated funds. The Corporate and Other Distributed Products segment provides mortgage loans, which include debt consolidation or refinance, and purchase money loans; unsecured loans; prepaid legal services that assist subscribers with legal matters, such as drafting wills, living wills and powers of attorney, trial defense, and motor vehicle-related matters; mail-order student life products; short-term disability benefit insurance; and auto and homeowners? insurance products. The company was founded in 1927 and is based in Duluth, Georgia.

Asian Stocks Decline for Fifth Week on Stimulus Concern

Asian stocks outside Japan fell for a fifth week, the longest streak of losses in two years, amid concern central banks are losing an appetite for more stimulus. Japanese stocks rebounded the final day of the week as Nomura Holdings Inc. and Fidelity Worldwide advised buying shares.

Newcrest Mining Ltd. fell a third week amid after the Australia's biggest gold producer said it will write down the value of its assets by as much as $5.7 billion. Nomura Holdings Inc., Japan's largest brokerage, climbed 1.3 percent with the Topix index little changed after a fourth week of swings. Chinese shares in Hong Kong capped a record losing streak.

The MSCI Asia Pacific excluding Japan Index dropped 1.3 percent this week to 440.07, extending this year's loss to 6.6 percent. A gauge that includes Japanese shares added 0.3 percent for the week. The Hang Seng China Enterprises Index fell for a record 12 straight days through June 14 amid concern that growth is slowing in the world's No. 2 economy.

"There's lots of confusion around the world at present about what central bank policy means for the outlook of the global economy, earnings and valuations," Matthew Sherwood, the Sydney-based head of investment market research at Perpetual Ltd., which manages about $25 billion, said by e-mail. "The Fed is likely to continue to be ambiguous about its next step, probably because it's not sure. This will see markets continue to be volatile."

More than $1 trillion was wiped from the value of the Asia-Pacific benchmark equities gauge from May 20 through June 13.

Unwinding Stimulus

Investors have sold shares amid concern that global central banks won't inject more funds in the event that the U.S. Federal Reserve decides to begin winding back its record stimulus program. Investors pulled $8.5 billion from global equity funds in the week to June 12, according to Citigroup Inc.

The Bank of Japan kept its policy unchanged June 11 and refrained from allowing longer fixed-rate loans to banks to stem debt market volatility, even after spikes in Japanese government bond yields.

Investors will scrutinize discussions among policy makers at the U.S. central bank when they meet next week after Fed Chairman Ben S. Bernanke said May 22 that the central bank could scale back stimulus should the job market show "sustainable improvement."

"People are still trying to assess the prospects, likelihood and timing of tapering from the Federal Reserve," Chris Green, an Auckland-based strategist at First NZ Capital Ltd., a brokerage and wealth management firm, said. "Markets want stability in the economy but they also want unlimited stimulus. The two can't continue to exist together."

Emerging Outflow

Overseas investors unloaded a net $2.7 billion from the Thai, Indonesian and Philippine stock markets so far this month, the biggest eight-day outflow since Bloomberg began compiling the data in March 1999. The three countries had led the four-year rally in global stocks through last month, and are now among the biggest losers.

Hong Kong's Hang Seng Index (HSI) fell 2.8 percent this week, a fifth week of declines, making it the worst performer among the world's developed equity markets, according to data compiled by Bloomberg. The Hang Seng China Enterprises gauge fell 5.1 percent, taking the decline to 21 percent, and pushing the so-called H-shares into a bear market.

China's Shanghai Composite Index retreated 2.2 percent, dragging valuations for the benchmark index to a six-month low.

Australia's S&P/ASX 200 Index added 1.1 percent, while New Zealand's NZX 50 Index lost 0.4 percent. South Korea's Kospi Index slipped 3.9 percent and Taiwan's Taiex index fell 2 percent. Singapore's Straits Times Index lost 0.7 percent.

Friday Rally

Japanese shares rallied the final day of the trading week after Nomura Holdings Inc. and Fidelity Worldwide said the country's market would climb to new highs. The gains weren't enough to recoup losses from earlier in the week.

The Topix index sank 0.1 percent this week, a fourth week of losses following on from its worst three-week decline since the the global financial crisis in 2008. The Nikkei 225 Stock Average dropped 1.5 percent, falling into a bear market after retreating more than 20 percent from a May 22 high.

Even after a 17 percent fall from last month, the Topix has climbed 23 percent this year, making it the best-performing major equity gauge in the developed world.

With more than $500 billion wiped from Japan's equity markets from the May high through June 13, brokerages and investors are seeing buying opportunities.

'Bullish Stance'

"Assuming that Abenomics has not been defeated, we see no reason to become bearish on Japanese stocks, and recommend a bullish stance," analysts led by Hiromichi Tamura at Nomura wrote in a report June 13. The brokerage increased its year-end estimate for the Topix to 1,500 from 1,350, while boosting the outlook for earnings per share to 82.5 from 75.

Analysts say earnings for Topix companies will jump 53 percent this fiscal year to 78.85 yen a share. After retreating 18 percent since May 22, the gauge is trading at 13.4 times estimated earnings, compared with 16.6 in May and the three-year average of 14.6. The Standard & Poor's 500 Index, where earnings are expected to rise 11 percent this year, trades for 14.8 times forecast profit.

"There are reasons to be optimistic that further weakness will be temporary and that the peak is not behind us," Alex Treves, head of equities Japan for Fidelity Worldwide, which manages about $248 billion, said by e-mail. "The key drivers of the rally remain intact, valuations are still reasonable and earnings are projected to recover to 2007 highs."

China Stocks

ICBC as the world's biggest lender is known, dropped 3.2 percent to HK$5.07 as data pointed to slowing economic growth in China and the World Bank cut its outlook for global expansion. Aluminum Corp. of China, the nation's No. 1 producer of the light metal, tumbled 10 percent to HK$2.60. Zijin Mining Corp., China's No. 1 gold miner, plunged 13 percent to HK$1.81.

Newcrest Mining slid 6.3 percent to A$11.57, among the worst performers on the Asia-Pacific benchmark this week. Bank of America Corp. cut its recommendation on shares of the gold producer, citing risks of a capital-raising should the price of the precious metal fall below $1,200 an ounce. The write downs and a plan to cut about 250 jobs were "painful," though a necessary response to gold's decline, Chief Executive Officer Greg Robinson told analysts on a conference call June 7.

ASX Ltd. (ASX) posted the biggest weekly loss in 3 1/2 years, falling 6.1 percent to A$33.15, amid a A$553 million ($530 million) capital raising at the operator of Australia's main stock exchange to ensure its clearing business complies with new regulations.