Thursday, January 30, 2014

Ky. principal denies attempt to sell stolen bou…

LOUISVILLE, Ky. -- A high school principal seen on video entering an Elizabethtown liquor store and exiting about 90 seconds later met Monday with detectives investigating the theft of more than $25,000 worth of 20-year-old Pappy Van Winkle bourbon.

Bardstown High School principal Chris Pickett also answered questions about claims he offered to sell some of the bourbon to the liquor store.

STORY: Rare Kentucky bourbon stolen in apparent inside job

"He did not" try to sell the sought-after bourbon, Pickett's attorney Doug Hubbard said in a phone interview. Instead, Hubbard said Pickett is a liquor collector who asked whether any Pappy was available.

Sheriff Pat Melton said the man who appeared in the store's surveillance video to be wearing a Bardstown High School pullover and drove a late model Ford F-150 that appeared to be green with tan trim. He estimated the man is between 50 and 60. When he released the video, Melton had labeled the man in the video as a "person of interest."

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Asked whether Pickett was cleared of any suspicion after meeting with investigators, Franklin County Sheriff Pat Melton said, "We've got to verify information."

Melton said Pickett "cooperated fully with detectives and we're moving forward with the case. ... I think right now everybody involved is obviously a person of interest."

Melton said other leads in the case also are being pursued.

Video surveillance at the Elizabethtown liquor store captured Pickett entering and leaving on Oct. 20, days after the theft was reported.

Pickett was in Elizabethtown for a Bardstown High athletic event and had been at a nearby restaurant when he decided to inquire about Pappy at the liquor store, Hubbard said.

Hubbard said the whole episode was "about 90 seconds (from) in to out." Pickett did not return messages left at his office Monday.

For the last two weeks, th! e sheriff's department has been investigating the heist — initially called an apparent inside job — from the Buffalo Trace Distillery in Frankfort, where the bourbon is made.

Sixty-five cases of the 20-year bourbon are missing. Nine cases of 13-year-old Van Winkle Family Reserve rye — about $675 worth — also were stolen.

Wednesday, January 29, 2014

Obama's new retirement savings plan: 'MyRA'

WASHINGTON — A new savings plan will allow Americans to buy savings bonds in a starter retirement account that "guarantees a decent return with no risk of losing what you put in," President Obama said Tuesday evening in his State of the Union address.

"Today, most workers don't have a pension. A Social Security check often isn't enough on its own. And while the stock market has doubled over the last five years, that doesn't help folks who don't have 401(k)s," he said.

Obama said he would direct the Treasury Department to create new "MyRA" accounts to allow people to more simply invest in Treasury bonds. "It's a new savings bond that encourages folks to build a nest egg," he said.

FULL TEXT: Obama's State of the Union Address

Details:

Safe: The new savings bonds would have its principal guaranteed by the U.S. government, much like a traditional savings bond.

Tax benefits: The MyRA bond would be like a Roth IRA: Your contributions would not be tax-deductible, but your earnings would be free from tax when you withdraw it. As with a Roth, your contributions can be taken out tax-free at any time.

Affordable: Minimum initial investment could be as low as $25, and subsequent investments could be as little as $5, through payroll deduction. Savers can keep the same account when they change jobs.

Rates: Savers will earn interest at the same variable interest rate as the federal employees' Thrift Savings Plan (TSP) Government Securities Investment Fund. The fund earned 1.74% last year.

Availability: The MyRA would be open to households earning up to $191,000 a year through their employers. Employers won't incur any cost to offer the MyRAs. You'll be able to save up to $15,000 a year for up to 30 years before transferring to a private Roth IRA.

The proposal was not the most controversial proposal the president unveiled, but it was a brand new idea he hadn't previously announced. The White House said it would release more details Wednesday, as the preside! nt embarks on a tour to expand on themes of the speech.

Retirement accounts aimed at small investors are often high-cost, in the case of brokerages, mutual funds and insurance companies. Bank retirement accounts often get sold up to high-cost investments when they grow large enough. But someone who uses a MyRA to save $15,000 could switch to a low-cost, broadly diversified fund, such as Vanguard Total Stock Index. Cost for one year: $7.50.

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Employers who offer the option won't have to administer them. And if they automatically enroll employees -- which they won't be required to do -- those employees will have a greater chance of accumulating retirement savings. At Fidelity Investments, pans with auto enrollment have an 84% participation rate vs. a 53% participation rate for plans without auto enrollment.

"It remains to be seen whether the MyRA is a better mousetrap," says Gary Schatsky, a New York financial planner. "For many, it could be first time they are participating in retirement savings in any meaningful way."

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Sunday, January 26, 2014

Richard Sherman's Rant: Millions in Endorsements, and Eyeing a Record Contrat

The entirety of Richard Sherman's rant after last week's Seahawks and 49ers game lasted no more than 25 seconds, and that's a generous count of the time that includes a confused Erin Andrews' questions.

We've all seen the rant, seen the talking heads of the sports world either laud Richard Sherman or denounce him. I'm not adding to that chatter. 

What I do find fascinating is the ramifications of the interview from a cold dollars-and-cents calculation. After Sunday's game, we've seen the following happen to Richard Sherman:

His Twitter follower count quickly more than doubled, and now sit at more than 700,000. He now has 82% more followers than Darelle Revis, the highest-paid cornerback in football.  Jersey sales exploded. Sherman's jersey is now the tenth most popular NFL jersey since April 1st of last year. He's the only defensive player in the top 10.  Advertising started flowing in. According to Sherman's agent, upward of $5 million in endorsements are on the table after last week's game. He currently makes slightly more than his $550,000 per year rookie contract in endorsements.   Clearly, while Sherman has his detractors, his adrenaline-fueled rant is leading to a big pay day. 
Salary vs. sponsorships 
The past week surrounding Richard Sherman -- and his potential pay day from it -- highlights the role of endorsements across sports figures and celebrities. 
According to a 2011 Harvard study, between 14% and 19% of all commercials featured a celebrity that endorsed a product. For the best athletes, endorsements are extremely lucrative. For example, according to Forbes, Tiger Woods and Roger Federer tied for the highest endorsement income in 2013 at about $65 million each. Their income from winning competitions was pegged at "just" $13.1 million and $6.5 million, respectively.
The total business of endorsements is huge, and saw tremendous growth last decade. Nike (NYSE: NKE) discloses future endorsement obligations in its financials. In 2002, the company reported just over $1 billion in endorsement obligations, but by 2009 that figure had risen to over $4 billion! While the company has cut back on endorsement deals in recent years, they're still a lucrative source of additional income for many athletes. 
Since football is America's most popular sport, you might expect several football players to be among the highest-paid endorsement deals. After all, a Harris poll published today showed 35% of Americans list football as their favorite sport. Baseball sits far behind in second place at 16%. 
Football-Not the endorsement gold mine you'd expect
Yet, there are a couple very key areas that prevent football players from cashing in on huge endorsement deals. While the sport is a top advertising draw in America, commanding Super Bowl ad rates of about $4 million for every 30 seconds, players are more anonymous. Football is a team sport where 22 players are battling on each play. Not only that, but they're anonymous warriors hidden behind helmets. Also, football is a niche sport away from America. Contrast that to golf, or tennis, both sports that are global. Not only that, but they're also sports where fans are known for high disposable income. 
The global popularity of sports is a key concept. The titans of endorsement deals, such as Nike and Adidas have long been focused on international sales growth. The world's biggest cricket star, Mahendra Singh Dhoni, makes 133% more in endorsements than the NFL's highest-paid endorser, Peyton Manning. The Indian market has 1.2 billion potential consumers multi-national brands want to reach. Also checking in before Manning are four different golfers and Chinese tennis player Li Na. Global reach, demographics, and international markets matter. A lot. 
Not surprisingly, the biggest football endorsers are quarterbacks. They're the face of teams, the center of each offensive play. By Forbes' estimates, Manning makes $12 million annually. Following him is Drew Brees ($11 million), Tom Brady ($7 million), Aaron Rodgers ($6 million), and Tony Romo ($3 million). 
Sherman, the anti-quarterback
Endorsement deals beyond well-known quarterbacks tend to be regional in the NFL. Seattle's Marshawn Lynch, known for his hard-nosed play and "beast mode" nickname, is most-known in the Seattle area for his poorly acted commercials with a local plumbing company (worth a watch). 
Pierre Garcon, a wide receiver who led the Redskins with 113 catches last year, fills up local advertising as the face of a local pizza chain. 
These are deals that generously could top out in the low six-figures. They also show the disparity between two very well-known positions (running back and wide receiver) and the kinds of national endorsements quarterbacks can command. 
For defensive players, who anonymously form a unit and rarely make Sportscenter Top 10 highlights, getting endorsements can be even more challenging. As was noted near the top, Richard Sherman is the only defensive player in the top 10 of jersey sales. Ask an average fan to name a cornerback from 20 years ago, and you'll likely get only one answer: Deion Sanders. 
Like Richard Sherman, Deion Sanders wasn't known for his subdued nature. His brashness, style, and self-confidence allowed him to overcome the inherent anonymity of his position. 
If Sherman's agent is correct, and he does have $5 million worth of potential endorsements on the table, his end-of-game rant will have pushed him into a unique space: among quarterbacks as the highest-paid endorsers in the NFL. 
Yet, there is also another benefit to the recent attention heaped upon him. Richard Sherman will be on the last year of his rookie contract next year and will be expecting a big pay day. Analysis from Spotrac shows Sherman should expect a 6-year contract worth about $92 million, with $48.9 million of that contract guaranteed. 
NFL GMs are smart enough to know Sherman is a top-flight player without all the media attention from the past week. However, the endless loops of his amazing final play and the potential for him to be a huge factor in the Super Bowl as the foil to Peyton Manning could be worth some extra oomph to that long-term contract. 
Sherman is a surprisingly calculating player. While the spotlight is shining on the endorsement outcomes from his rant, the bigger picture might be what few are paying attention to: Sherman says he's the best cornerback in the game, his next goal is to get paid like the best.   

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Saturday, January 25, 2014

Elon Musk and the Case of the Curious Tweets (Update 1)

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Updated from 8:01 A.M. EDT to provide company comment in the third paragraph and comments about stock in the 10th paragraph.

NEW YORK (TheStreet) -- Tesla Motors (TSLA) CEO Elon Musk certainly isn't shy about promoting his company to the world. Now, he's asking others to join it.

In a curious series of tweets, Musk, who regularly uses the social media platform to help promote his Palo Alto, Calif.-based company, asked for engineers to join Tesla's autonomous driving program. The team will report directly to Musk, according to his tweets.

Tesla declined to comment on Elon's tweets regarding the autopilot system for the Model S. Intense effort underway at Tesla to develop a practical autopilot system for Model S— Elon Musk (@elonmusk) September 18, 2013 Engineers interested in working on autonomous driving, pls email autopilot@teslamotors.com. Team will report directly to me.— Elon Musk (@elonmusk) September 18, 2013 Approach is 360 deg flush mounted tiny cameras + radar (prob not lidar). Lot of software & hardware level image processing.— Elon Musk (@elonmusk) September 18, 2013 Musk has said in the past that he would like to develop an auto-pilot software program for the Model S. Developing an auto-pilot program seems like a curious decision, given the favorable reviews the Model S has received so far. Consumer Reports gave the Model S its highest grade ever. Motor Trend has already awarded the Model S the car of the year, and several other publications have been exceptionally favorable towards the car. Note: I recently reviewed the Model S. My thoughts and video footage of the test drive will be published shortly. Tesla shares were higher in Thursday trading, after Deutsche Bank analyst Dan Graves boosted his price target to $200 from $160. --Written by Chris Ciaccia in New York >Contact by Email. Follow @Chris_Ciaccia

Friday, January 24, 2014

Top 5 New Companies To Buy For 2014

There's a new individual in the CFO chair at Duke Realty (NYSE: DRE  ) . Following the resignation of Christie Kelly, the company has named Mark Denien as its new finance chief. Kelly stepped down to serve in the same position for fellow real estate purveyor Jones Lang LaSalle (NYSE: JLL  ) . Denien will formally take up the position tomorrow.

Denien is currently Duke Realty's chief accounting officer, and is also senior vice president at the firm. He has been with the company since 2005; prior to that, he was a partner at KPMG in Indianapolis, where he worked for 16 years.

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Top 5 New Companies To Buy For 2014: New Energy Technologies Inc (NENE)

New Energy Technologies, Inc., incorporated on May 5, 1998, is a development-stage company. The Company is engaged in renewable and alternative energy business. The Company conducts its operations through two wholly owned subsidiaries: Kinetic Energy Corporation (KEC), Sungen Energy, Inc. and New Energy Solar Corporation (New Energy Solar). The Company focuses on the development of two technologies: MotionPower Technology for capturing the kinetic energy of moving vehicles to generate electricity, and SolarWindow Technology, which enables see-through glass windows to generate electricity by spraying glass surfaces with its electricity-generating coatings to their glass surface. It has filed 10 patent applications for inventions related to its MotionPower Technology and one for its SolarWindow Technology. As of June 21, 2012, it had no commercial products. As of June 21, 2012, the Company had no revenues.

SolarWindow

The Company�� SolarWindow products in development are designed to generate electricity on glass while remaining see-through. It has six product development goals for its SolarWindow technology: SolarWindow - Commercial, which is a flat glass product for installation in new commercial towers under construction and replacement windows; SolarWindow - Structural Glass, which is a structural glass walls and curtains for tall structures; SolarWindow - Architectural Glass, which is a textured and decorative interior glass walls and room dividers; SolarWindow - Residential, which is a window glass for installation in residential homes under construction and replacement windows; SolarWindow - Flex , which is a film which may be applied directly onto glass, similar to aftermarket window tint films, for retrofit to existing commercial towers, buildings, and residential homes; and SolarWindow - BIPV, which is a building product components associated with building-integrated-photovoltaic (BIPV) applications in homes, buildings, and office towers.

MotionPower

MotionPower products are designed to generate electricity from the capture and conversion of available kinetic energy into electricity, which is present in vehicles which are slowing down before stopping. It is developing three MotionPower products: MotionPower - Heavy, which is a fluid-driven, system with limited moving mechanical components for installation at sites where big rigs, such as tractor trailers, buses, and commercial vehicles are traveling at below 15 miles per hour and are in the process of slowing down; MotionPower - Auto, which is a fluid-driven, system similar to MotionPower - Heavy for installation at sites where cars and light-duty trucks, such as sport utility vehicles and automobiles, are traveling at below 15 miles per hour and are in the process of slowing down; and MotionPower - Express, which is a mechanical system for installation at sites where all cars, light-duty trucks, motor homes, buses, big rigs, and commercial vehicles are traveling faster than 15 miles per hour and are in the process of slowing down.

The Company competes with Konarka Technologies, Inc., XsunX, Inc. and Sharp Corporation.

Top 5 New Companies To Buy For 2014: SolarCity Corp (SCTY.W)

SolarCity Corporation (SolarCity), incorporated on June 21, 2006, is engaged in the design, installation and sale or lease of solar energy systems to residential and commercial customers, or sale of electricity generated by solar energy systems to customers. The Company sells renewable energy to its customers. As of December 12, 2012, the Company served customers in 14 states. The Company�� residential customers are individual homeowners and homeowners. The Company�� commercial customers represent several business sectors, including technology, retail, manufacturing, agriculture, nonprofit and houses of worship. The Company has installed solar energy systems for several government entities, including the the United States Air Force, Army, Marines and Navy, and the Department of Homeland Security. The Company purchases major components, such as solar panels and inverters directly from multiple manufacturers. As of September 30, 2012, its primary solar panel suppliers were Trina Solar Limited, Yingli Green Energy Holding Company Limited and Kyocera Solar, Inc., among others, and its primary inverter suppliers were Power-One, Inc., SMA Solar Technology, AG, Schneider Electric SA, Fronius International GmbH and SolarEdge Technologies, among others.

Solar Energy Products

The Company�� solar energy products include Solar Energy Systems, and SolarLease and power purchase agreement finance products. The major components of its solar energy systems include solar panels that convert sunlight into electrical current. Most of its solar energy customers choose to purchase energy from the Company pursuant to one of two payment structures: a SolarLease or a power purchase agreement. In both structures, the Company charges customers a monthly fee for the power produced by its solar energy systems. In the lease structure, this monthly payment is pre-determined and includes a production guarantee. In the power purchase agreem ent structure, the Company charges customers a fee per kilo! w! att hour based on the amount of electricity actually produced by the solar energy system.

Energy Efficiency Products and Services

The Company�� energy efficiency products and services include home energy evaluation and energy efficiency upgrades. The Company sells home energy efficiency evaluations to new solar energy system customers and existing customers. The Company�� energy efficiency upgrade products and services address heating and cooling, air sealing, duct sealing, water heating, insulation, furnaces, weatherization, pool pumps and lighting. As of December 12, 2012, the Company had completed over 13,000 home energy evaluations and performed more than 2,000 energy efficiency upgrades.

Other Energy Products and Services

The Company�� other energy products and services include electric vehicle charging and energy storage. The Company installs electric vehicle (EV) charging equipment that it sources from t hird parties. SolarCity markets EV equipment to residential and commercial customers through retail partnerships with companies, such as The Home Depot, and through EV manufacturers and dealerships, such as its partnership with Tesla Motors, Inc. The Company is developing a battery management system built on its solar energy monitoring communications backbone. As of December 12, 2012, the Company had over 100 energy storage pilot projects under contract. As of December 12, 2012, the Company had sold over 750 charging stations.

Enabling Technologies

The Company�� enabling technologies include SolarBid Sales Management Platform, SolarWorks Customer Management Software, Energy Designer, Home Performance Pro and SolarGuard and PowerGuide Proactive Monitoring Solutions. SolarBid is a sales management platform, which incorporates a database of rate information by utility, sun exposure, roof orientation and a range of other factors to enable a detailed a nalysis and customized graphical presentation of each c! ustom! er! �� sa! vings.

SolarWorks is the software platform the Company uses to track and manage project. Energy Designer is a software application its field engineering auditors use to collect pertinent site-specific design details on a tablet computer. Home Performance Pro is its energy efficiency evaluation platform that incorporates the United States Department of Energy�� Energy Plus simulation engine. Home Performance Pro collects and stores details of a building�� construction and energy use. SolarGuard and PowerGuide provide its customers a view of their home�� or business�� energy generation and consumption.

The Company competes with American Solar Electric, Inc., Astrum Solar, Inc., Petersen Dean, Inc., Real Goods Solar, Inc., REC Solar, Inc., Sungevity, Inc., Trinity Solar, Inc., Verengo, Inc., SunRun Inc. and Ameresco, Inc.

Top 5 Oil Stocks For 2015: Osage Exploration and Development Inc (OEDV)

Osage Exploration and Development, Inc. (Osage) is an oil and natural gas exploration and production company with reserves and production in the country of Colombia and the state of Oklahoma. The Company�� pipeline is located in Colombia. The Companys focuses on developing its 28,000-acre Horizontal Mississippian block along the Nemaha Ridge in Logan County, Oklahoma, with their partners Slawson Exploration, and U.S. Energy Development Corp. The Company generates oil sales from its production operations in Colombia and in the state of Oklahoma and pipeline revenues from its Cimarrona property in Colombia. During the year ended December 31, 2011, the Company drilled two salt water disposal wells and commenced drilling the Wolfe#1-29H, the Company�� horizontal Mississippian well in Logan County, Oklahoma. In January 2012, the Company began drilling the Krittenbrink 2-36H, the Company�� second well in Logan County.

The Company�� subsidiary, Cimarrona LLC, owns a 9.4% interest in certain oil and gas assets in the Guaduas field, located in the Dindal and Rio Seco Blocks that consist of 21 wells, of which seven are producing, that covers 30,665-acres in the Middle Magdalena Valley in Colombia, as well as a pipeline with a capacity of approximately 30,000 barrels of oil per day. The Cimarrona property, but not the pipeline, is subject to an Ecopetrol Association Contract (the Association Contract) whereby the Company pays Ecopetrol S.A. (Ecopetrol) royalties of 20% of the oil produced.

The Company has acquired oil and gas leases in Logan County, Oklahoma targeting the Mississippian formation. The Mississippian formation is located on the Anadarko Shelf in northern Oklahoma and south-central Kansas. The top of this expansive carbonate hydrocarbon system is encountered between 4,000 and 6,000 feet and lies stratigraphically between the Pennsylvanian-aged Morrow Sand and the Devonian-aged Woodford Shale formations. The Mississippian formation reach 600 feet in gross thickness a! nd the targeted porosity zone is between 50 and 300 feet in thickness. The Company owns 100% of the working interest in certain producing oil and natural gas leases located in Osage County, Oklahoma (Hopper Property). The Property consists of 23 wells, 10 of which are producing wells, on 480 acres.

Advisors' Opinion:
  • [By CRWE]

    Today, OEDV surged (+6.78%) up +0.08 at $1.26 with 39,220 shares in play thus far (ref. google finance Delayed: 11:56AM EDT August 22, 2013).

    Osage Exploration and Development, Inc. previously reported financial results for the three months ended June 30, 2013 and provided an update on field operations. For the quarter, the Company reported a 75.8% increase in revenues of $2.4 million compared to the same period in 2012, and operating income of $1.2 million versus a loss of $274,563 for the period ending June 30, 2012.

    Osage participated in drilling ten wells during the second quarter, bringing the total number of wells in which Osage has an interest to twenty-nine as of June 30, 2013. Additionally, the Company reported average daily production roughly in-line with first quarter production.

Top 5 New Companies To Buy For 2014: SunPower Corp (SPWR)

SunPower Corporation, incorporated in April 1985, is a vertically integrated solar products and services company that designs, manufactures and delivers solar electric systems worldwide for residential, commercial, and utility-scale power plant customers. The Company operates in two business segments: the Utility and Power Plants (UPP) Segment and the Residential and Commercial (R&C) Segment. The UPP Segment refers to its solar products and systems business, which includes power plant project development and project sales, turn-key engineering, procurement and construction (EPC) services for power plant construction, and power plant operations and maintenance (O&M) services. UPP Segment also sells components, including huge volume of sales of solar panels and mounting systems to third parties, sometimes on a multi-year, firm commitment basis. The R&C Segment focuses on solar equipment sales into the residential and small commercial market through its third-party global dealer network, as well as direct sales and EPC and O&M services in the United States and Europe for rooftop and ground-mounted solar power systems for the new homes, commercial and public sectors. In May 2012, K Road Power Holdings, LLC (K Road) and SunPower Corp announced that K Road acquired the 25-megawatt (AC) McHenry Solar Project, which the Company designed. In January 2013, the Company MidAmerican Solar acquired the 579-megawatt Antelope Valley Solar Projects (AVSP), two co-located projects in Kern and Los Angeles Counties in Calif from SunPower.

In January 2012, the Company completed its acquisition of the wholly owned Total SA subsidiary Tenesol SA, a global solar provider. In September 2011, NRG Energy Inc. acquired 250 megawatt California Valley Solar Ranch (CVSR) project from SunPower. In June 2011, the Company introduced SunPower E20 Series Solar Panel (E20) series. The Company�� customers in its UPP Segment include investors, financial institutions, project developers, electric utilities, and independent po! wer producers in the United States, Europe, and Asia. In its R&C Segment, the Company primarily sells its products to commercial and governmental entities, production home builders, and its third-party global dealer network serving residential owners and small commercial building owners.

Solar Cells

The A-300 solar cell is a silicon solar cell with a specified power value of 3.1 watts and a conversion efficiency averaging between 20.0% and 21.5%. The Company�� A-330 solar cell delivers 3.3 watts with a conversion efficiency of up to 22.7%.

Solar Panels

The Company�� SunPower solar panel series include solutions, such as SunPower E18 Series Solar Panel (E18), SunPower E19 Series Solar Panel (E19), and SunPower E20 Series Solar Panel (E20). Available in a 72-cell configuration, the E18 series panel uses its A300 all back-contact solar cells and delivers a total panel conversion of 18.1% to 18.5%. Available in a 72, 96, and 128-cell configuration, the E19 series panel uses its A300 all back-contact solar cells and delivers total panel conversion of 19.3% to 19.7%. Available in a 96-cell configuration, the E20 series panel uses its A-330 all back-contact solar cells and delivers total panel conversion of up to 20.1%.

Inverters

The Company sells a line of SunPower branded inverters. The inverters are manufactured by third parties.

Roof Mounted Products

The roof mounted products include SunPower T-5 Solar Roof Tile System (T-5), SunPower T-10 Commercial Solar Roof Tiles (T-10), PowerGuard Roof System (PowerGuard) and SunTile Roof Integrated System (SunTile). Tilted at a 5-degree angle, the T-5 roof tile is a non-penetrating photovoltaic rooftop product that combines solar panel, frame, and mounting system. The T-5 solar roof tile systems are primarily sold through its R&C Segment.

Tilted at a 10-degree angle, the T-10 commercial solar roof tiles is a non-penetrating panel interlock system! . Dependi! ng on geographical location and local climate conditions, this can allow for the generation of up to 10% more annual energy output than traditional flat roof-mounted systems. The T-10 commercial solar roof tile is primarily sold through its R&C Segment.

PowerGuard is a non-penetrating roof-mounted solar panel that delivers electricity while insulating and protecting the roof membrane from ultraviolet rays and thermal degradation. The PowerGuard roof system is primarily sold through its R&C Segment. SunTile solar shingles are designed to replace multiple types of roof panels, including the common concrete flat, low and high profile S tile and composition shingles. The SunTile roof system is also sold through its R&C Segment.

Ground Mounted Products

The ground mounted products include SunPower T-0 Tracker (T-0) & SunPower T-20 Tracker (T-20), SunPower Oasis Power Plant (SunPower Oasis), SunPower C-7 Tracker (C-7), and Fixed Tilt and SunPower Tracker Systems for Parking Structures. The T-0 and T-20 trackers are single-axis tracking systems that automatically pivot solar panels to track the sun's movement throughout the day. This tracking feature increases the amount of sunlight that is captured and converted into energy by up to 30% over flat or fixed-tilt systems, depending on geographic location and local climate conditions. A single motor and drive mechanism can control 10 to 20 rows, or more than 200 kilo watts of solar panels. The T-0 and T-20 trackers have been installed in a range of geographical markets principally in the United States, Germany, Italy, Portugal, South Korea, and Spain. The T-0 and T-20 trackers are sold through both its UPP and R&C Segments.

The Oasis is a solar power block that scales from 1 mega watts distributed installations to central station power plants. Oasis provides a way to deploy utility-scale solar power systems, streaming the development and construction process while optimizing the use of available land. The SunPow! er Oasis ! is sold through its UPP Segment. The C-7 combines a horizontal single-axis tracker with rows of parabolic mirrors, reflecting light onto linear arrays of its solar cells. The C-7 tracker is sold through its UPP Segment. SunPower has developed designs for solar power systems for parking structures in multiple configurations. These dual-use systems typically incorporate solar panels into the roof of a carport or similar structure to deliver onsite solar power while providing shade and protection. They are suited for parking lots adjacent to facilities. Fixed Tilt and SunPower Tracker Systems for parking structures are sold through both its UPP and R&C Segments.

Other System Offerings

SunPower�� metal roof system is designed for sloped-metal roof buildings, which are used in some winery and warehouse applications. This solar power system is designed for rapid installation. It also offers other architectural products, such as day lighting with translucent solar panels.

Balance of System Components

Balance of system components are components of a solar power system other than the solar panels. It includes SunPower branded inverters, mounting structures, charge controllers, grid interconnection equipment, and other devices depending on the specific requirements of a particular system and project.

The Company competes with Canadian Solar Inc., JA Solar Holdings Co., Kyocera Corporation, Mitsubishi Corporation, Q-Cells AG, Sanyo Corporation, Sharp Corporation, SolarCity Corporation, SolarWorld AG, Sungevity, Inc., SunRun, Inc., Suntech Power Holdings Co. Ltd., Trina Solar Ltd., Yingli Green Energy Holding Co. Ltd., Abengoa Solar S.A., Acconia Energia S.A., AES Solar Energy Ltd., Chevron Energy Solutions, EDF Energy plc, First Solar Inc., NextEra Energy, Inc., OPDE Group, NRG Energy, Inc., Recurrent Energy, Sempra Energy, Skyline Solar, Inc., Solargen Energy, Inc., Solaria Corporation, SolFocus, Inc., SunEdison and Tenaska, Inc.

Advisors' Opinion:
  • [By WALLSTCHEATSHEET.COM]

    SunPower is attempting to fuel the world with an alternative energy source through solar technology. The stock has seen a large decline over the last few years but is now attempting to reverse this trend and shoot higher. Over the last four quarters, earnings have improved while revenue figures have been on the rise, but investors have clearly expected more from the company. Relative to its peers and sector, SunPower has been a year-to-date performance leader. Look for SunPower to OUTPERFORM.

Top 5 New Companies To Buy For 2014: EcoloCap Solutions Inc (ECOS)

EcoloCap Solutions Inc. (EcoloCap), incorporated on March 18, 2004, is a development stage company. The Company is an integrated network of environmentally focused technology companies that design, develop, manufacture and sell cleaner alternative energy products.

The Company through its subsidiary Micro Bubble Technologies Inc. (MBT), developed and manufactures M-Fuel. The Company also developed the Carbon Nano Tube Battery (CNT-Battery), and the Nano Li- Battery both recyclable, rechargeable batteries. MBT has also developed a process that blends non-miscible liquids (oil and water) on a submicron level in order to create a non-emulsified fuel product that it calls EM-Fuel.

Top 5 New Companies To Buy For 2014: EcoloCap Solutions Inc (ECOS.PK)

EcoloCap Solutions Inc. (EcoloCap), incorporated on March 18, 2004, is a development stage company. The Company is an integrated network of environmentally focused technology companies that design, develop, manufacture and sell cleaner alternative energy products.

The Company through its subsidiary Micro Bubble Technologies Inc. (MBT), developed and manufactures M-Fuel. The Company also developed the Carbon Nano Tube Battery (CNT-Battery), and the Nano Li- Battery both recyclable, rechargeable batteries. MBT has also developed a process that blends non-miscible liquids (oil and water) on a submicron level in order to create a non-emulsified fuel product that it calls EM-Fuel.

Top 5 New Companies To Buy For 2014: Solazyme Inc (SZYM.O)

Solazyme, Inc. (Solazyme), incorporated on March 31, 2003, makes oil. The Company�� technology transforms a range of plant-based sugars into oils. Its renewable products can replace or enhance oils derived from the world�� three existing sources-petroleum, plants and animal fats. The Company is focused on commercializing its products into three target markets: fuels and chemicals, nutrition, and skin and personal care. In 2010, the Company launched its products, the Golden Chlorella line of dietary supplements. In March 2011, the Company launched its Algenist brand for the luxury skin care market through marketing and distribution arrangements with Sephora S.A. (Sephora International), Sephora USA, Inc. (Sephora USA), and QVC, Inc. (QVC).

The Company is engaged in development activities with multiple partners, including Chevron U.S.A. Inc., through its division Chevron Technology Ventures (Chevron), The Dow Chemical Company (Dow), Ecopetrol S.A. (Ecope trol), Qantas Airways Limited (Qantas) and Conopoco, Inc., doing business as Unilever (Unilever).

In 2010, the Company entered into a 50/50 joint venture with Roquette Freres, S.A. (Roquette). In November 2010, the Company entered into a joint venture and operating agreement for Solazyme Roquette Nutritionals with Roquette. In December 2010, the Company entered into an exclusive distribution relationship with Sephora International, and in January 2011, the Company entered into a distribution relationship with Sephora USA. Under the arrangements, each of Sephora International and Sephora USA will distribute the Algenist product line in their respective territories.

In Fuels and Chemicals market its renewable oils can be refined and sold as drop-in replacements for marine, motor vehicle and jet fuels, as well as replacements for chemicals that are traditionally derived from petroleum or other conventional oils. The Company work with its refining par tner Honeywell UOP to produce Soladiesel (renewable diesel! ),! Soladiesel renewable diesel for United States Naval vessels, and Solajet renewable jet fuel for both military and commercial application testing. In nutrition market the Company has developed microalgae-based food ingredients, including oils and powders that enhance the nutritional profile and functionality of food products while reducing costs for consumer packaged goods (CPG) companies. In Skin and Personal Care market the Company hs developed a portfolio of branded microalgae-based products. Its ingredient is Alguronic Acid, which the Company has formulated into a range of skin care products with anti-aging benefits. The Company is also developing algal oils as replacements for the oils used in skin and personal care products.

The Company competes with BP p.l.c., Royal Dutch Shell plc, and Exxon Mobil Corporation, jatropha, camelina, SALOV North America Corporation, Archer Daniels Midland Company, Cargill, Incorporated, DSM Food Specialties and Danisco A/S< /p>

Top 5 New Companies To Buy For 2014: WaterFurnace Renewable Energy Inc (WFIFF.PK)

WaterFurnace Renewable Energy, Inc. specializes in the design, manufacture and distribution of geothermal and water-source systems. It�� the United States subsidiary companies are WaterFurnace International, Inc. (WaterFurnace) and LoopMaster International, Inc. (LoopMaster). In December 2010, it incorporated two Australian subsidiaries: WaterFurnace International Asia Pacific Pty. Ltd. (WaterFurnace Asia Pacific) and Hyper WFI Pty. Ltd. (Hyper WFI). WaterFurnace designs, manufactures and distributes geothermal water source heating and cooling systems for residential, commercial and institutional buildings. LoopMaster installs geothermal loops for residential applications, does commercial conductivity testing and provides design and installation assistance. Hyper WFI designs, develops and builds devices that limit the inrush current, which electric motors draw upon start up. On January 21, 2011, the Company acquired inventory and fixed assets from Binary Engineering Pty. Ltd.

Top 5 New Companies To Buy For 2014: Solar Energy Initiatives Inc (SNRY)

Solar Energy Initiatives, Inc., incorporated on June 20, 2006, is a provider of solar solutions with three wholly owned subsidiaries focused on projects, solar education and distribution of solar products. Its products include solar panels, inverters, solar thermal systems, system design, financial consulting and analysis, construction management, and maintenance and monitoring. The SNRYPower subsidiary is a developer and manager of municipal and commercial scale solar projects. The Solar-EOS Inc subsidiary is engaged in education and continuous improvement of solar energy trade professionals. The SNRYSolar Inc subsidiary is a wholesale distributor of branded photovoltaic and thermal (water heating) systems selling via a network of dealers throughout the United States and the Caribbean. During the fiscal year ended July 31, 2010 (fiscal 2010), the Company sold its interests in SolarEnergy.com, a domain name and digital property back to its original owner. In February 2011, the sold its Solar (EOS) Division.

Solar EOS, Inc.

Solar EOS, Inc. is a wholly owned subsidiary of Solar Energy Initiatives, Inc. It is an education group dedicated to the creation, training, advancement and continuous improvement of professionals through standard and customized solar training programs and workforce development. It supports the growth of the solar industry through training and education. Solar EOS provides training through its Professional Development Institute and through its Technical Installation Schools, as well as through its Customized Training Programs.

Professional Development Institute offers programs to architects, engineers, general contractors, roofers, plumbers, facility managers and owner�� representatives. The institute offers solar courses to members of the professional communities. Many courses provide needed continuing education units for licensure and professional registrations. Solar EOS is also an approved Ukulele Society of Great Britain (USGB) Educatio! n Provider. These classes are paid for by the professional or his company when taking the course.

Technical Installation Schools focus on workforce development and public/private partnerships. The school trains the next generation of solar thermal and photovoltaic installers in construction best practices, utilizing hands-on training, real world situations, theory and design coursework, and professional development training. Career Services programs, partnerships and dealer relationships drive the job placement of the students. These courses are paid for by the business rather than the individuals.

Customized Training Programs work through partnerships with universities, community and technical colleges, non profits, corporations, professional organizations, municipalities and workforce redevelopment agencies to meet the specific needs of groups of students. The Company writes the curriculum, provides the instructors, coordinates workshops, develops training programs, and hosts webinars and on-demand webcasts. The students do not pay for the course but is paid for through a variety of government programs in the form of a grant. As of October, 2010, the Company entered the fourth class for the Technical Installation School and graduated over 50 students, and trained more than 100 professionals in its Professional Development Institute.

SNRY Solar Inc.

SNRY Solar Inc. is a wholly owned subsidiary of Solar Energy Initiatives, Inc. (SEI). SNRY Solar is responsible for two areas: wholesale sales and government programs. SNRY Solar represents several manufacturers of solar systems and components in the Photovoltaic (PV), Solar Thermal / Hot Water (HW) and solar pool heating systems. SNRY Solar inventories and sells these components and systems to a network of installers, dealers and other business types across the United States and the Caribbean. SNRY Solar provides technical information, supply coordination and extensive sales support to aide these indep! endent bu! sinesses.. These support functions include but are not limited to preliminary engineering, scoping and drawings to support sales activity as well as lead generation tools, product recommendation and proposal support. SNRY Solar has developed business models which engage community groups, local, state and federal leaders and grass roots organizations to seek available funds to support job creation through solar.

SNRY POWER Inc.

SNRY POWER Inc. is a wholly owned subsidiary that focuses on developing solar photovoltaic (PV) panel systems for either mounting on the ground or on rooftops. These systems, once installed, generate electricity that is sold to various third parties including utilities, home and business owners, municipalities and other government agencies. In the Power Purchase Agreement (PPA) program, the Company builds the PV system at no charge to the host (the municipality or other customer). The system is built on space (either land or rooftop) provided by the host in exchange for a reduction in the hosts payment for electricity (usually expressed in cents per kilowatt hour (KWh).

The Company is constructing a one mega watt (MW) ground mounted solar PV system on land provided by the Cherokee School District in North Carolina. It has secured construction financing to build 50% of the system and considering selling the system in fiscal 2010.

Solar panels are solar cells electrically connected together and encapsulated in a weatherproof package. The Company purchases from Suntech, GE Solar, BP Solar and other vendors in the Unites States and off-shore. Inverters transform direct current (DC), electricity produced by solar panels into alternating current (AC), electricity used in homes and businesses. Inverters are used in every on-grid solar power system and feed power either directly into the structure�� electrical circuit or into the utility grid. In North America, it sells branded inverters designed for use in residential and commercia! l systems.! Inverters it sources include models spanning a power range of 2.5 to 500 kilowatts. Its inverters are manufactured by Solectria, Xantrex, SMA Technologies, AG and PV Powered. Solar thermal systems include a solar collector, which gathers solar radiation to heat air or water for domestic, commercial or industrial use, piping and/or pump(s) to move heated water and a tank for storage. The Company provides dealers and customers with a variety of services, including system design, energy efficiency, financial consulting and analysis, construction management and maintenance and monitoring. Solar electric and solar thermal systems are designed to take into account the customer�� location, site conditions and energy needs.

The Company competes with groSolar, Sunpower, Sunwize, BP Solar, Evergreen Solar and GE Solar.

Top 5 New Companies To Buy For 2014: Solar Power Inc (SOPW)

Solar Power, Inc., incorporated on May 22, 2006, is a global solar energy facility (SEF) developer offering SEF development services. The Company offers an approach to design, engineer and construct photovoltaic (PV) solar systems for commercial and utility applications. In addition to developing SEFs using products manufactured by LDK Solar Co., Ltd. (LDK), its parent company, the Company also sells solar modules and balance of system components manufactured by third party vendors to other integrators in the United States, Asian, and European markets. In June 2012, the Company acquired 100% interest in Italy-based Solar Green Technologies (SGT) from LDK Solar Europe Holdings S.A., a wholly owned subsidiary of LDK Solar Co., Ltd.

In addition to designing, engineering and constructing SEFs, the Company also provides long-term operations and maintenance (O&M) services through its O&M program SPIGuardianTM. This service program provides a suite of services that commence upon a facility�� commissioning to provide performance monitoring, system reporting, preventative maintenance and full warranty support over the anticipated life of the SEF.

The Company competes with Sun Power Corporation, First Solar, SPG Solar, Sun Edison, Kyocera Corporation, Mitsubishi, Solar World AG, Sharp Corporation, Yiugli, Solar Fun and Suntech and Canadian Solar.

Thursday, January 23, 2014

How to connect with the fastest-growing client demographic

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Financial advisers seeking to build relationships with the fastest growing demographic in America just need to reach out and connect with it.

The Hispanic community has a significant unmet need for financial advisory services, has been historically underserved by advisers — thanks to a handful of common misconceptions — and would be very receptive to financial advice if only advisers reached out, according to a study by Prudential Financial Inc.

The Hispanic population is expected to grow 167% by 2050. More so than other groups, Hispanics stand to benefit substantially from financial advisory services. For example, Hispanic households with incomes above $75,000 accumulate only half the assets of others in that income bracket, according to Tanya Valle, vice president of global communications for Prudential, who moderated a webcast on the study results Wednesday. Some reasons for this include saving more than investing, spending on family needs and, for some, lacking knowledge of financial options.

Wednesday, January 22, 2014

Will Buyers Abandon Small Cars Because of Crash Dangers?

Small cars have several advantages for consumers. First among these is fuel efficiency. Second is that most small cars cost less than larger ones. These may be more than offset by the fact that small vehicles often are not safe to drive. Although the problem makes sense, it was driven home by recent research. And the research results may undermine sales in the important segment, robbing the industry of momentum.

The Insurance Institute for Highway Safety (IIHS) announced:

Only 1 minicar out of 11 tested achieves an acceptable rating in the Insurance Institute for Highway Safety’s small overlap front crash test, making these tiny vehicles the worst performing group of any evaluated so far.

General Motors Co.’s (NYSE: GM) Chevrolet Spark made the cut. The Honda Motor Co. Ltd. (NYSE: HMC) Fit, Toyota Motor Corp. (NYSE: TM) Yaris and Prius C, Ford Motor Co. (NYSE: F) Fiesta, Kia Rio, Hyundai Accent, Fiat 500, Mazda 2, Mitsubishi Mirage and Nissan Versa sedan did not.

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Among the factors these cars have in common is price. The Fiesta sells for barely more than $14,000. The Mazda 2 has a base price under $15,000. The Yaris also sells for less than $15,000. The other “dangerous” cars on the IIHS list are priced similarly.

The 11 cars also get extraordinary gas mileage. The Versa gets 40 miles per gallon (mpg) on the highway. The Mirage gets as much as 44 mpg. The Fiat 500 lists its highway mpg at 40 as well. Each of the numbers is extraordinarily low. Low enough — recently — that when married with price, some buyers find them irresistible.

The segment of the auto buyer market to which these cars appeal is likely younger buyers who often do not have the money to afford expensive cars or high gasoline costs. The industry needs these buyers. The University of Michigan’s Transportation Research Institute recently reported that the people most likely to buy cars in general are 55 to 64 years old. This eclipsed the 35-to-44 year old group, which used to lead the list. Authors of a Bloomberg evaluation of the study reported:

Indeed, young people don’t seem that interested in driving. Just 79 percent of people between 20 and 24 had a driver’s license in 2011, compared with 92 percent in 1983, according to the Michigan study.

Conversely, the oldest boomers are trooping down to the Department of Motor Vehicles in growing numbers to remain licensed to drive. Almost 93 percent of those age 60 to 64 had a driver's license in 2011, up from 84 percent in 1983.

Car companies can ill afford trouble that would undermine sales of cars that appeal to the youth segment of the market. As older buyers reach the end of their driving years, someone has to replace them, or car companies have a hurdle they cannot overcome.

Friday, January 17, 2014

How to Minimize Taxes When You Inherit an IRA

I am the beneficiary of my mother's IRA. What options do I have for withdrawing the money when she passes away?

SEE ALSO: The IRS Cracks Down on IRA Mistakes

You have several options when you inherit an IRA, and the one you choose can have a big impact on how much you pay in taxes. The rules are different for spouses than for nonspouse beneficiaries. They're also different for traditional IRAs than they are for Roths, which generally are not taxed when left to heirs.

If you inherit a traditional IRA, you can cash out the account at any age -- even before you reach age 59½ -- without having to pay a 10% early-withdrawal penalty. But you will have to pay taxes on the money in the account (except for any nondeductible contributions).

If nonspouse beneficiaries don't start taking withdrawals by December 31 of the year after the IRA owner dies, then they must withdraw all of the money in the account within five years. Otherwise, you must take minimum distributions from the account based on your own life expectancy, starting by December 31 of the year after the original owner's death. These required withdrawals are similar to the required minimum distributions (RMDs) for IRA holders over age 70½, but they use a different life expectancy table. The withdrawals will still be taxable (except for any nondeductible contributions), but the rest of the money can continue to grow tax-deferred in the account.

Spouses who inherit a traditional IRA have extra choices. They can roll the money into their own IRA, so they don't have to start taking required minimum distributions (based on their life expectancy) until they reach age 70½. But they'd have to pay a 10% early-withdrawal penalty for money they take from the account before age 59½.

If the original IRA owner was 70½ or older and had already started taking RMDs before he or she died, then the beneficiary can continue to take annual withdrawals based on the original owner's life expectancy schedule or take withdrawals based on his or her own life expectancy.

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The rules are different for Roth IRAs, which can usually be inherited tax-free. But you can't keep the money in the account forever. Original Roth IRA owners don't have to take required minimum distributions, but nonspouse heirs have to take annual distributions from the account based on their life expectancy, starting the year after the original IRA owner dies (spouses have the option of rolling a Roth into their own account). Or you can withdraw all of the money in the account within five years. Either way, you generally won't have to pay taxes on the withdrawals.

For more information about these rules and the IRS life-expectancy tables for required withdrawals, see IRS Publication 590, "Individual Retirement Arrangements."

Got a question? Ask Kim at askkim@kiplinger.com.



Thursday, January 16, 2014

QCOM Slashes Indian Wireless Stake - Analyst Blog

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Qualcomm Inc. (QCOM) sold an additional 2% stake in four entities of its Indian wireless broadband business to Bharti Airtel, for an undisclosed amount. This will further consolidate Bharti Airtel's position – the leading telecom operator in India.

These four entities already own broadband wireless access (BWA) licenses in four major circles of Delhi, Mumbai, Haryana and Kerala. So, raising its stake in these units will help it to stay ahead of competitors like Relience Jio Infocomm, who are planning to start BWA services across Delhi and Mumbai. At present, Bharti Airtel owns BWA licenses for eight circles that include Kolkata, Karnataka, Punjab and Maharashtra.

Last year, Qualcomm entered into an agreement to sell 49% of its Indian broadband business to Bharti Airtel for nearly $165 million. Moreover, the company decided to exit the Indian wireless market by selling the remaining stake to Bharti Airtel by the end of 2014. However, the company will continue to offer its technological support to the Indian carrier.

In 2012, Qualcomm has spent nearly $1 billion to secure the spectrum licenses. However, Qualcomm has decided to disseminate the fourth generation super-fast wireless broadband service and then sell it to its local partners.

India is the second-largest telecom market in the world with a wireless subscriber base of nearly 1 billion but a broadband penetration of only 2%. The broadband sector is attracting huge investments to introduce LTE network in India.

Hence, we believe that forming a strategic relationship with India's leading carrier will help Qualcomm to boost its Snapdragon chipset supply as Bharti Airtel will be using Snapdragon-based devices to support its 4GLTE revolution.

Currently, Qualcomm carries a Zacks Rank #3 (Hold).

Other Stocks to Consider

Other stocks to consider in the s! emiconductor industry are Ericsson (ERIC), Texas Instruments Inc. (TXN) and Broadcom Corp. (BRCM). Both Texas Instruments and Broadcom carry a Zacks Rank #3 (Hold) while Ericsson holds a Zacks Rank #1 (Strong Buy).


Wednesday, January 15, 2014

Australia stocks rise as Rio report boosts miners

LOS ANGELES (MarketWatch) -- Australia stocks rose early Thursday, with miners leading the way higher after a positive production report from Rio Tinto Ltd. (AU:RIO) (RIO) , while overall sentiment got a lift from U.S. gains overnight. The S&P/ASX 200 (AU:XJO) improved by 0.6% to 5,274.30, with shares of Rio Tinto rising 2.2% after reporting record high iron-ore shipments for 2013 and a sold gain for copper output. Rio's peers also advanced, with BHP Billiton Ltd. (AU:BHP) (BHP) up 1.7%, Fortescue Metals Group Ltd. (AU:FMG) (FSUMF) ahead by 3.2%, and Oz Minerals Ltd. (AU:OZL) (OZMLF) adding 2.4%. Among the gold producers, Newcrest Mining Ltd. (AU:NCM) (NCMGF) surged 7.2% as J.P. Morgan raised its rating on the shares to overweight from neutral. Banks weren't as lucky, however, with Australia & New Zealand Banking Group (AU:ANZ) (ANEWF) down 0.3%, while Westpac Banking Corp. (AU:WBC) (WEBNF) and Commonwealth Bank of Australia (AU:CBA) (CBAUF) lost 0.7% each as Citibank downgraded the trio to neutral from buy, according to Dow Jones Newswires. The Sydney market was also awaiting Australian jobs data for December due out later in the day, with a Wall Street Journal survey tipping a 10,000 gain in net employment and a jobless rate of 5.8%.

Tuesday, January 14, 2014

Anadarko Petroleum: The Never Ending Story

One month ago, a bankruptcy judge determined that Anadarko Petroleum (APC) had fraudulently spun out Tronox before the latter’s bankruptcy and ruled that Anadarko should be liable for between $5 billion and $14 billion in damages. Last night, Anadarko offered its rebuttal.

Agence France-Presse/Getty Images

Reuters has the details on Anadarko’s response:

Anadarko Petroleum Corp said it should pay as little as $850 million in damages over the 2005 spinoff of paint materials company Tronox Inc, 94 percent below the maximum amount a federal bankruptcy judge said it might owe.

The estimate was provided on Monday, one month after U.S. Bankruptcy Judge Allan Gropper in Manhattan said a higher payout of $14.17 billion might be in order because Anadarko’s Kerr-McGee Corp unit intended to harm Tronox creditors by saddling the spinoff with unsustainable environmental liabilities.

Morgan Stanley’s Evan Calio and team make some observations:

We believe the key element of the memo relates to the consideration of the "dilutive effects" of damages on APC's 502(h) claim, which drives the high-end of the Court's provisional damages ($14Bn). APC contests the Court's authority to make this determination and contends that the language of the reorganization plan specifies that they receive the same percentage as Class 3 claimants (78-100%) in their 502(h) claim…

APC contends that the $4Bn midpoint of legacy liabilities (environmental and tort) suggested in the Court's Opinion was the Plaintiffs' post-petition estimate and was never proven in trial. APC also points out that the amount contradicts the Court's own finding of fact where the NPV of the legacy liabilities on 11/28/05 was determined to be $1.757Bn (date of spin-off, the same date the E&P assets are valued on).

Shares of Anadarko have underperformed peers like EOG Resources (EOG),Noble Energy (NBL), Apache (APA) and Occidental Petroleum (OXY) during the past six months as the litigation risk held back the stock, and it looks like it’s going to take a while before its settled once and for all.

Shares of Anadarko have gained 3.1% to $80.78 today, while Noble Energy has risen 2% to $64.45, Occidental Petroleum has advanced 0.8% to $92.30, Apache has jumped 1.7% to $85.78 and EOG resources is up 3% at $168.42.

Monday, January 13, 2014

USD/JPY Falls To 3 Week Low After Soft Jobs Data Calls Tapering Into Question

The U.S. dollar fell to its lowest levels since December 18 against the Japanese yen after the U.S. employment report raised investor concerns over the health of the U.S. economy.

On Friday, the U.S. Bureau of Labor Statistics reported a gain of 74K nonfarm jobs, the smallest increase in three years. The figure missed analyst expectations of 196K by a wide margin.

News that the December U.S. unemployment rate fell to 6.7 percent from 7.0 percent in the prior month was dampened by the decline in labor force participation. The civilian labor force participation rate declined by 0.2 percent to 62.8 percent in December, equaling November's figure which was the lowest since 1978.

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See also: Weekly Preview - All Eyes on Bank Earnings

The Fed announced in December that starting in January, it will taper its monthly bond buying to $75-billion from the $85-billion pace started in September 2012, citing 'meaningful' progress in the jobs market. However, the weaker aspects of Friday's employment report have prompted speculation over how the data may affect the Federal Reserve's plans to taper stimulus in the coming months.

Speaking at the news conference following December's announcement, Fed Chairman Ben Bernanke emphasized that Fed policy would remain data dependent, "On the first issue of $10 billion, again we say we are going to take further modest steps subsequently so that would be the general range but again I want to emphasize that we are going to be data dependent. We could stop purchases if the economy disappoints, we could pick them up somewhat if the economy is stronger."

USD/JPY surged higher during 2013 amid the diverging policies of the Federal Reserve and Bank of Japan. While the Fed moved towards reducing stimulus in 2013, making the first taper in December, the Bank of Japan ramped up their large scale bond-buying program geared to boost the Japanese economy and prevent deflation.

USD/JPY Daily Chart

Looking at the USD/JPY daily chart we can see that starting in early December, while price was rising, momentum as measured by the oscillator RSI was declining. Price/oscillator divergence is viewed as an indicator of a potential change in price trend.

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  Most Popular Earnings Expectations For The Week Of January 13: Big Banks, GE, Intel And More UPDATE: Stifel Downgrades Cree on Recent Performance UPDATE: JMP Securities Reiterates Coverage on ARIAD Pharmaceuticals, Sees Market Share Regain UPDATE: Bank of America Upgrades MGM Resorts International, Has Bullish 2014 Outlook Coming Soon: 3D Printing for Everyone Alcatel-Lucent CEO Says China to Become World's Largest 4G Market Related Articles (FXY + dxy) USD/JPY Falls To 3 Week Low After Soft Jobs Data Calls Tapering Into Question Dollar Sharply Lower After Non-Farm Payroll Miss ETF Outlook for Thursday, December 19 (FXY, GLD, XLF, FDN) Japan the Next Big Trade for U.S. Investors? ETF Outlook for Friday, November 29, 2013 Around the Web, We're Loving... Lightspeed Trading Presents: Thunder and Tubleweeds: Trading Techniques for the New Market Enviroment Pope Francis Rips 'Trickle-Down' Economics Come See How the Pro's Trade in this Exclusive Webinar Wynn, MGM, Other Casino Giants Vying For U.S. Turf What Should You Know About AMZN? View the discussion thread. Partner Network

Friday, January 10, 2014

Bad News for Chevron, Good News for Exxon Mobil

It was a good news, bad news kind of day for Chevron (CVX) yesterday, after it told investors that it would meet guidance for the third quarter but that its profit would plunge 31% from a year ago during the fourth.

Reuters

Unlike last year, when Chevron’s refining business was a drag on earnings while its so-called upstream business fired on all cylinders, now refining is providing the boost. That’s good news for Exxon Mobil (XOM) and refiners, says Morgan Stanley’s Evan Calio and Manav Gupta. They explain:

We believe capture rates [how much of the difference between the cost of oil and refined products a company can earn. Ed. ] troughed in 3Q13 and most US refiners will show a quarter-over-quarter improvement as differentials were widening and the WTI curve moved to contango from backwardation. Positive refining revisions will positively impact [Exxon Mobil] more than [Chevron], as [Exxon Mobil] has significantly more absolute N. American refining capacity. Marketing margins [the margins from selling the finished product to the retail market. Ed.] also improved 17% q/q and 32% q/q on [West Coast] and [Gulf Coast] respectively, a positive indicator for refiners with retail operation [(Marathon Petroleum (MPC), Tesoro (TSO), Phillips 66 (PSX), Western Refining (WNR) & Delek US (DK))].

Shares of Chevron have dropped 2% to $1220.77, while Exxon Mobil has fallen 0.4% to $99.37, Marathon Petroleum has dipped 0.3% to $90.79, Tesoro has declined 1.3% to $57.23, Western Refining has slipped 1.2% to $40.79 and Delek US has dropped 1.7% to $33.31. Phillips 66 is little changed at $78.15.

Thursday, January 9, 2014

Lululemon Challenged by Lawsuits

Sometimes, you get in one of those ruts where even the little things don't seem to go quite right. You get a flat tire, the store is out of marmalade, and you trip going up the escalator. It wouldn't be so bad if a few things were going right, but they just aren't. lululemon athletica (NASDAQ: LULU  ) feels your pain. The company just keeps finding itself on the receiving end of mediocre news.

First the company lost out on sales when it was forced to recall its overly sheer pants, then it lost its chief product officer, and then its CEO announced her departure. Now, Lululemon is under fire from investors, who have filed several class action lawsuits against the yoga retailer regarding its product issues. Will it ever fully recover?

The problem with pants
The first lawsuit alleges that Lululemon misled investors about the real cost associated with the company's earlier sheer pants issue. It claims that during the time between the announcement of the issue and the newest earnings release, management talked up the speed and efficiency of its problem-solving, while secretly planning to remove CEO Christine Day from office.

Depending on your point of view, Day's departure is either an unrelated event or the second casualty in the sheer-pants scandal. Product Officer Sheree Waterson left in April, in a not-so-subtly timed announcement that coincided with Lululemon's "how we're going to fix this" press release.

The shortage of fabric for the pants caused a meaningful dent in Lululemon's sales last quarter. The company admitted to having to write off $17.5 million of unusable Luon -- the fabric used in the pants -- due to the quality issue. The shortage also contributed to a 90-basis-point product margin decline.

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That opened the door for competition, which resulted in a hit to Lululemon's same-store sales growth. In its most recent earnings call, Under Armour called out the strong performance in its studio line in the first quarter. That line competes with Lululemon's yogawear, and likely saw an uptick due to the market leader's product issues.

Who knew what
The issue isn't how bad the situation is, though -- it's what Lululemon said about the situation. The more detailed lawsuit has three claims against the company. First, that it purposefully cut down on Luon quality to boost its margins. Second, that the company then went on to discount its clothing in order to keep market share. Finally, that Day's removal had been in the works for some time. All of these things were going on, the suit claims, while the company put on a shining, "everything is fine" face for investors.

The press releases from the time in question certainly seem to put a good face on things. The announcement about the issue came on March 18, and then by April 3, the whole thing was sorted out.

On its fourth-quarter conference call and in its earnings release on March 21, the company updated its guidance for the quarter and year, based on a fall in comparable sales. It then met those expectations in the first quarter, for which results were announced last month. On the call, it said that the annual earnings-per-share impact would be around $0.21.

In the end, it seems hard to say that Lululemon was anything less than clear about the impact of the Luon shortage. While further investigation may show that the lawsuits are well-founded, the public face of the company seems fine to me. I understand investors' frustration, though. The stock is down 17% year to date, but there should be at least a little bounce once a new CEO is found. The company still seems fundamentally strong, although it needs to figure out its competitive position. For now, I'm still tentatively bullish on Lululemon.

The retail space is in the midst of the biggest paradigm shift since mail order took off at the turn of last century. Only those most forward-looking and capable companies will survive, and they'll handsomely reward those investors who understand the landscape. You can read about the 3 Companies Ready to Rule Retail in The Motley Fool's special report. Uncovering these top picks is free today; just click here to read more.

Tuesday, January 7, 2014

Here's How to Play Intel Stock Now

The PC market meltdown over the past year hasn't been kind to holders of Intel (NASDAQ: INTC  ) stock, which is down more than 8% since last summer versus a better than 20% gain for the S&P 500.

You know what, though? It could be worse. Intel shares are up more than seven percentage points on the S&P year to date thanks long-overdue gains in the market for mobile chips. The latest example: Samsung, which recently signed on to use Intel's Haswell chipset in future versions of its Galaxy Tab.

But investing is also a game best played in context. How does Intel stock compare to peers Advanced Micro Devices (NYSE: AMD  ) and Texas Instruments (NASDAQ: TXN  ) ? Here's what the numbers say:

Key Statistics Intel AMD Texas Instruments

Current share price

$25.47

$4.09

$36.12

Shares outstanding

4.97 billion

714.5 million

1.11 billion

Market cap

$126.6 billion

$2.9 billion

$40.1 billion

Trailing P/E ratio

12.73

Not available

22.37

PEG ratio

1.21

(1.37)

2.71

Gross margin

60.3%

33.7%

49.3%

Cash from operations

$20.19 billion

($600 million)

$3.33 billion

Sources: S&P Capital IQ and Yahoo! Finance.

And here's what Fools say, going by the data available in our CAPS investor intelligence database:

CAPS Category Intel AMD Texas Instruments

CAPS stars (out of 5)

*****

**

***

Number of CAPS ratings

10,059

3,800

1,659

Bullish CAPS ratings

9,437

3,127

1,530

Top 10 Financial Companies To Watch In Right Now

Bearish CAPS ratings

622

673

129

Bull ratio

93.8%

82.3%

92.2%

Source: Motley Fool CAPS.

Intel gets Fools' highest rating, and for good reason, writes CAPS All-Star chitownjester:

These guys aren't dumb. [They] [w]ill figure out new business models to offset declining PC sales and further take advantage of [the] mobile revolution. Ultrabook gambit failed but too much horsepower and resources -- they will recover. One key driver will be cloud/server. And when the #1 PC (Mac!) runs on your kit, you're doing something right.

Verdict: Intel stock is a buy
Intel has has run dry in the mobile market for so long that it sometimes seems it'll never catch up to all the various ARM Holdings licensees. And yet, looking at Intel's margin and cash flow advantages, I have to believe Haswell's success was inevitable, and that more successes are likely on the way. I'm picking Intel to beat the market over the next year in my CAPS portfolio as a result.

Where do you stand? Let us know what you think of Haswell's prospects versus competitors, and whether you'd buy, sell, or short Intel stock at current prices, using the comments box below.

Don't count your chips just yet
Just how big is Intel's opportunity? In this premium research report on Intel, a Motley Fool analyst explains all of the key topics investors should understand before investing a dime in the chip giant. Click here now to learn more.

Sunday, January 5, 2014

Top 10 Oil Stocks To Invest In Right Now

Some of the stocks that may grab investor focus today are:

Comtech Telecommunications (NASDAQ: CMTL) reported upbeat fiscal fourth quarter results and issued a strong full-year outlook. Comtech shares jumped 11.12% to $26.77 in the after-hours trading session.

Forest Oil (NYSE: FST) announced its plans to sell its oil and gas assets located in the Texas Panhandle for $1 billion. Forest Oil shares surged 12.13% to $7.12 in the after-hours trading session.

Shares of Pandora (NYSE: P) rose 1.17% in after-hours trading after Lone Pine Capital reported a 5.3% passive stake in the company. Pandora shares gained 1.17% to $26.75 in after-hours trading.

Xyratex (NASDAQ: XRTX) reported a drop in its third-quarter profit. However, the company issued downbeat forecast for the fourth quarter. Xyratex shares tumbled 7.83% to $11.06 in the after-hours trading session.

Top 10 Oil Stocks To Invest In Right Now: Apache Corporation(APA)

Apache Corporation, together with its subsidiaries, engages in the exploration, development, and production of natural gas, crude oil, and natural gas liquids. The company has exploration and production interests in the Gulf of Mexico, the Gulf Coast, east Texas, the Permian basin, the Anadarko basin, and the Western Sedimentary basin of Canada; and onshore Egypt, offshore Western Australia, offshore the United Kingdom in the North Sea, and onshore Argentina, as well as on the Chilean side of the island of Tierra del Fuego. Apache Corporation sells its natural gas to local distribution companies, utilities, end-users, integrated oil and gas companies, and marketers; and crude oil to integrated oil companies, marketing and transportation companies, and refiners. As of December 31, 2009, it had total estimated proved reserves of 1,067 million barrels of crude oil, condensate, and natural gas liquids, as well as 7.8 trillion cubic feet of natural gas. The company was founded in 1954 and is based in Houston, Texas.

Advisors' Opinion:
  • [By Seth Jayson]

    Apache (NYSE: APA  ) is expected to report Q1 earnings on May 9. Here's what Wall Street wants to see:

    The 10-second takeaway
    Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Apache's revenues will wane -5.1% and EPS will wither -26.7%.

Top 10 Oil Stocks To Invest In Right Now: Africa Hydrocarbons Inc (NFK.V)

Africa Hydrocarbons Inc. (AHI) is a Canada-based oil and gas company engaged in the acquisition and development of energy assets, with an emphasis on Africa. The key asset of the Company is its 47.5% owned Bouhajla Block, which is located onshore in Tunisia within the productive Pelagian Basin. The Company completed approximately 60 square kilometer of three-dimensional (3D) seismic. The Company�� BHN-1 well was spud on the Bouhajla North oil prospect. The Company�� projects include Tunisia Project Highlights, Tunisia - Pelagian Basin Area, Bouhajla Prospects and Leads, Bouhajla Prospects, Bouhajla North Risk Mitigation, Tunisia - Bouhajla PSC and PSC Terms - Oil.

Best Canadian Companies To Watch In Right Now: Valero Energy Corporation(VLO)

Valero Energy Corporation operates as an independent petroleum refining and marketing company. The company operates through three segments: Refining, Ethanol, and Retail. The Refining segment engages in refining, wholesale marketing, product supply and distribution, and transportation operations. It produces conventional gasoline, distillates, jet fuel, asphalt, petrochemicals, lubricants, and other refined products. This segment also offers conventional blendstock for oxygenate blending, reformulated gasoline blendstock for oxygenate blending, gasoline meeting the specifications of the California Air Resources Board (CARB), CARB diesel fuel, low-sulfur and ultra-low-sulfur diesel fuel. The Ethanol segment produces ethanol and distillers grains. The Retail segment sells transportation fuels at retail stores and unattended self-service cardlocks; convenience store merchandise and services in retail stores; and home heating oil to residential customers. Valero Energy Corpora tion markets its refined products through bulk and rack marketing network; and sells refined products through a network of approximately 6,800 retail and wholesale branded outlets under the Valero, Diamond Shamrock, Shamrock, Ultramar, Beacon, and Texaco names in the United States, Canada, the United Kingdom, Aruba, and Ireland. As of December 31, 2011, it owned 16 petroleum refineries with a combined throughput capacity of approximately 3.0 million barrels per day; and operated 10 ethanol plants with a combined nameplate production capacity of approximately 1.1 billion gallons per year. The company was formerly known as Valero Refining and Marketing Company and changed its name to Valero Energy Corporation in August 1997. Valero Energy Corporation was founded in 1955 and is based in San Antonio, Texas.

Advisors' Opinion:
  • [By Arjun Sreekumar]

    Similarly, Valero (NYSE: VLO  ) announced earlier this year that it is planning to purchase 2,000 railcars to boost rail shipments to its refineries. It also unveiled plans to construct a new crude oil "topper" unit at its 90,000 barrels-per-day Houston refinery, which will help it process more light crude oil. �

  • [By Selena Maranjian]

    Appaloosa Management reduced its stake in companies such as Chimera Investment (NYSE: CIM  ) and Valero Energy (NYSE: VLO  ) . Mortgage REIT Chimera Investment recently yielded 10.9%, but it may become less attractive if Congress cancels favorable tax treatment for REITs. Chimera has taken on more risk than many of its brethren, and has had some trouble filing reports on time. Some still like its prospects, though, while others question its hefty management fees.

Top 10 Oil Stocks To Invest In Right Now: Encana Corporation(ECA)

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

Advisors' Opinion:
  • [By David Smith]

    Other fracking goings-on
    While water is likely to remain a key consideration for hydraulic fracturing for years to come, there are several other items of importance currently swirling about with regard to unconventional drilling, which has been responsible for a 30% increase in U.S. oil reserves and a 90% incrasee in our gas reserves:

    The Environmental Protection Agency continues to move forward with its nationwide study of the potential effects of hydraulic fracturing on groundwater and drinking water. A resulting report is expected to be released in 2014. In the meantime, 31 experts from universities, scientific laboratories, and industry have been appointed to review what promises to be a landmark document. The EPA also has abandoned its interminable and controversial research into whether fracking by Encana (NYSE: ECA  ) fouled the water table in Pavillion, Wyo. The effort was a follow-up to a 2011 study by the agency, which purported to find a connection between Encana's operations and the contamination of an aquifer, has been turned over to Wyoming officials. They plan to release a final report next year. The Obama administration has set forth a proposed rule requiring oil and natural gas companies that drill on federal land to disclose the chemicals used in their hydraulic operations. It also would establish standards for well construction and waste disposal.

    A Foolish takeaway
    Hydraulic fracturing, it seems, will always be a target for environmental grousing and federal nitpicking. It seems unlikely, however, that it will ever be severely curtailed. On that basis, I'm increasingly becoming a proponent of Chesapeake Energy (NYSE: CHK  ) , especially under its new management.

  • [By David Smith]

    The process, which was first used in Colorado, and has found its way to Pennsylvania, has already been responsible for some amazing statistics: Encana (NYSE: ECA  ) has drilled 51 Piceance shale wells in northwestern Colorado from a single pad. And Devon Energy (NYSE: DVN  ) �has completed 36 wells from a single pad in the Marcellus shale. Obviously, these companies -- among others -- are already benefiting from this staggering advancement.

  • [By Richard Zeits]

    Earlier this year, after almost a year of active but unsuccessful marketing of a Mississippian Lime Joint Venture and following several mixed test results, Encana Corporation (ECA) designated its ~320,000 net Mississippian Lime acres in Kansas for sale. In July, Encana followed with a decision to divest its remaining acreage in Osage County in Oklahoma, including seven producing wells.

Top 10 Oil Stocks To Invest In Right Now: EXCO Resources NL(XCO)

EXCO Resources, Inc., an independent oil and natural gas company, engages in the exploration, exploitation, development, and production of onshore North American oil and natural gas properties with a focus on shale resource plays. The company holds interests in various projects located in East Texas, North Louisiana, Appalachia, and the Permian Basin in west Texas. As of December 31, 2010, it had proved reserves of approximately 1.5 trillion cubic feet equivalent; and operated 7,276 wells. The company was founded in 1955 and is based in Dallas, Texas.

Advisors' Opinion:
  • [By Arjun Sreekumar]

    In response, virtually every major U.S. energy producer curtailed gas drilling in favor of producing oil and, to a lesser degree, natural gas liquids. For instance, Chesapeake Energy (NYSE: CHK  ) , the nation's second-largest natural gas producer, reduced its gas-directed rig count from over 100 rigs in early 2010 to around 10 by the third quarter of last year. Similarly, EXCO Resources (NYSE: XCO  ) slashed its gas rig count from 23 as of year-end 2011 to 7 as of the end of October last year.

  • [By Tyler Crowe]

    Using this simple thesis not only makes the whole idea of LNG exports rather simple, it doesn't need to drastically change the way you think about the energy space already. For those who are a little more tolerant of risk, natural gas producers should look a bit more attractive. Low-cost producers like Ultra Petroleum (NYSE: UPL  ) and Exco Resources (NYSE: XCO  ) beat analyst expectations this past quarter because the small uptick in gas prices gave them enough room to profit. If we were to see an uptick in demand thanks to natural gas, then these companies could stand to profit greatly.�

  • [By Tyler Crowe]

    Right now, natural gas spot prices are in the $4.00 range. For low-cost natural gas producers like Ultra Petroleum (NYSE: UPL  ) and Exco Resources (NYSE: XCO  ) , a $4 price for gas will be a welcome sight. Exco had written down so many assets because of low gas prices, the company expects profits as long as gas remains above $2.15. Once LNG exports do come on line, an uptick in natural gas prices is expected, but not one that is so severe. More importantly, companies like Ultra and Exco that deal exclusively with natural gas will not have to worry as much about wild price swings.�

  • [By Rich Smith]

    Chesapeake Energy (NYSE: CHK  ) continued its efforts to get its balance sheet in order this week. On Wednesday, the company announced it has signed agreements to sell to an EXCO Resources (NYSE: XCO  ) subsidiary:

Top 10 Oil Stocks To Invest In Right Now: Gastar Exploration Ltd (GST)

Gastar Exploration Ltd (Gastar) is an independent energy company engaged in the exploration, development and production of natural gas and oil in the United States. The Company�� principal business activities include the identification, acquisition, and subsequent exploration and development of natural gas and oil properties with an emphasis on unconventional reserves, such as shale resource plays. As of December 31, 2011, it is pursuing the development of liquids-rich natural gas in the Marcellus Shale in the Appalachia area of West Virginia and, to a lesser extent, central and southwestern Pennsylvania. The Company also holds prospective acreage in the deep Bossier play in the Hilltop area of East Texas and conduct limited coal bed methane (CBM) development activities within the Powder River Basin of Wyoming and Montana. The Company is a holding company. Advisors' Opinion:
  • [By David Smith]

    Earlier, the company had pocketed $75.2 million by selling to Gastar Exploration (NYSEMKT: GST  ) leasehold acreage in Oklahoma's Kingfisher and Canadian counties. It'll obviously require a passel of sales of that magnitude to shore up an overweight balance sheet.

  • [By Josh Young]

    The parallel to Goodrich in the transaction is Gastar Exploration (GST), which has approximately 100,000 net acres in the Hunton (excluding additional exposure from the WEHLU deal). Gastar, similar to Goodrich prior to the Sanchez TMS deal, seems to trade at a discount to a $2,000 per acre implied value for its unconventional oil acreage. In fact, Gastar's CEO recently said he thought the current liquidation value of Gastar's Marcellus assets would be $4-7 per share, net of debt, versus the current $4.25 share price.

  • [By Robert Rapier]

    Gastar Exploration (NYSE: GST) is another Aggressive Portfolio pick made on Dec. 11, and so far it has rallied quite aggressively, producing a three-week capital gain of 26 percent. It helped here too to catch the very bottom of the recent correction, but Gastar has continued to report strong test well results from the Hunton Limestone play it’s pioneering in Oklahoma.

  • [By Heather Ingrassia]

    Gastar Agreement: On April 1st it was announced that Gastar Exploration, Ltd. (GST) had entered into a definitive agreement to acquire proven reserves and undeveloped leasehold interests in Kingfisher and Canadian counties of Oklahoma from Chesapeake Energy Corporation, repurchase Chesapeake's common shares of the Company and settle all litigation for $1 million. Although smaller in scope than most of Chesapeake's previous asset-shedding transactions, the agreement with Gastar accomplishes two things. First, is the fact the settlement resolves the legal wrangling both companies were engaged in and as a result Chesapeake walks away with $85 million of the potential $130 million they were suing for. Second, is the fact Chesapeake wipes it hands of acreage, that although producing, may not be producing as much as Chesapeake had once hoped, and therefore was worth much more to Gastar in the long run.

Top 10 Oil Stocks To Invest In Right Now: Paradigm Oil and Gas Inc (PDGO)

Paradigm Oil And Gas, Inc.( Paradigm), incorporated on July 15, 2002, is engaged in the exploration, development, acquisition and operation of oil and gas properties. The Company participates in the oil and gas industry through the purchase of small interests in either producing wells or oil and gas exploration and development projects. As of December 31, 2010, the Company held 100% working interests in certain oil and gas leases along with certain Oil and Gas production equipment in the State of Texas, United States of America, and is engaged in the rework and development of those properties. As of December 31, 2010, Intergrated Oil and Gas Solutions Inc. is the 100% owned subsidiary of the Company. Effective August 5, 2013, Paradigm Oil & Gas Inc acquired a majority interest in CAM Trucking & Well Service, a trucking company, from A Feezel Corp.

The Company is an exploration company focused on developing North American oil and natural gas reserves. It focuses on the exploration of its land portfolio consists of working interests in prospective acreage in the State of Texas and in the Southern Alberta Foothills area in Canada; and North Central Alberta, Canada. On June 22, 2010, Intergrated Oil and Gas Solutions Inc. acquired the Corsicana lease. On June 25, 2010, Intergrated Oil and Gas Solutions Inc. acquired two additional Chilson leases, known as Chilson B.

The oil and gas properties are consists of four leases totaling approximately 934 net mineral acres, all located in the State of Texas, United States of America. Chilson Property covers 80 acres in the County of Wichita carry with a 87.5% net revenue interest. There are seven existing wells on the property that have previously produced. Approximately 69 new wells can be drilled to depths that vary between 800 to 5,000 feet. Lumpkin Property 692 acres in Kaufman County, carry a 80% Net Revenue Interest. This lease is considered an exploration field with existing production nearby. 17 new wells can be drilled to 9,000 ! feet. Lett Finley Property, Consists of two leases-40 acres located in the County of Wood, carry a 75% Net Revenue Interest, and 122.37 acres located in the County of Henderson carry a 81.25% Net Revenue Interest There are two existing wells on the properties that have previously produced. Two new offset wells can be drilled to 9,500 feet and another seven infield wells can be drilled.

Top 10 Oil Stocks To Invest In Right Now: Enbridge Inc(ENB)

Enbridge Inc. engages in the transportation and distribution of crude oil and natural gas primarily in Canada and the United States. Its Liquids Pipelines segment operates common carrier and contract crude oil, natural gas liquids (NGLs), and refined products pipelines and terminals. The company?s Gas Distribution segment distributes natural gas to residential, commercial, and industrial customers primarily in central and eastern Ontario, northern New York State, Quebec, and New Brunswick. Enbridge?s Gas Pipelines, Processing and Energy Services segment invests in natural gas pipelines, processing and green energy projects, and commodity marketing businesses, as well as performs commodity storage, transport, and supply management services. Its Sponsored Investments segment transports crude oil and other liquid hydrocarbons through common carrier and feeder pipelines, as well as transports, gathers, processes, and markets natural gas and NGLs; operates a crude oil and liqui ds pipeline and gathering system; and owns a 50% interest in the Canadian portion of Alliance Pipeline and partial interests in various green energy investments. The company was formerly known as IPL Energy Inc. and changed its name to Enbridge Inc. in October 1998. Enbridge Inc. was founded in 1949 and is headquartered in Calgary, Canada.

Advisors' Opinion:
  • [By WWW.GURUFOCUS.COM]

    Enbridge Inc. (ENB) operates as an energy transportation and distribution company in the United States and Canada. Dec. 4, the company increased its quarterly dividend 16.7% to $0.35 per share. The dividend is payable March 1, 2014, to shareholders of record on Feb. 14, 2014. The yield based on the new payout is 3.4%.

Top 10 Oil Stocks To Invest In Right Now: Abraxas Petroleum Corp (AXAS)

Abraxas Petroleum Corporation is an independent energy company primarily engaged in the acquisition, exploitation, development and production of oil and gas in the United States and Canada. As of December 31, 2011, the Company�� estimated net proved reserves were 29.0 million barrels of oil equivalent (MMBoe), (including reserves attributable to its 34.7% equity interest in the proved reserves of Blue Eagle), of which 53% were classified as proved developed, 54% were oil and natural gas liquids (NGL��) and 94% by PV-10 were operated. Its daily net production during the year ended December 31, 2011, was 3,484 barrels of oil equivalent per day, of which 45% was oil or liquids. Its oil and gas assets are located in four operating regions in the United States, the Rocky Mountain, Mid-Continent, Permian Basin and onshore Gulf Coast, and in the province of Alberta, Canada.

The Company�� properties in the Rocky Mountain region are located in the Williston Basin of North Dakota and Montana and in the Green River, Powder River and Unita Basins of Wyoming and Utah. In this region, its wells produce oil and gas from various reservoirs, including the Niobrara, Turner, Bakken and Three Forks formations. Well depths range from 7,000 feet down to 14,000 feet. The Company�� properties in the Mid-Continent region are primarily located in the Arkoma Basin and principally produce gas from the Hartshorne coals at 3,000 feet. Its properties in the Permian Basin region are primarily located in two sub-basins, the Delaware Basin and the Eastern Shelf. In the Delaware Basin, its wells are located in Pecos, Reeves, and Ward Counties, Texas and produce oil and gas from multiple stacked formations from the Bell Canyon at 5,000 feet down to the Ellenburger at 16,000 feet.

In the Eastern Shelf, its wells are principally located in Coke, Scurry, Midland, Mitchell and Nolan Counties, Texas and produce oil and gas from the Strawn Reef formation at 5,000 to 7,500 feet and oil from the shallower Clea! rfork formation at depths ranging from 2,300 to 3,300 feet. The Company�� properties in the onshore Gulf Coast region are located along the Edwards trend in DeWitt and Lavaca Counties, Texas and in the Portilla field in San Patricio County, Texas. In the Edwards trend, its wells produce gas from the Edwards formation at a depth of 14,000 feet and in the Portilla field, its wells produce oil and gas from the Frio sands and the deeper Vicksburg from depths of approximately 7,000 to 9,000 feet. In addition, the Company also owns a 34.7% equity interest in a joint venture targeting the Eagle Ford in South Texas. Its properties in the province of Alberta, Canada are located in the Pekisko fairway and the Nordegg/Tomahawk area of Central Alberta.

As of December 31, 2011, the Company leased approximately 20,835 net acres, primarily in counties located on the Nesson Anticline and in areas west, including Rough Rider and Lewis & Clark in North Dakota and in Sheridan County, Montana, which are prospective for the Bakken and Three Forks formations. During the year ended December 31, 2011, the Company drilled two operated wells and participated in an additional 19 gross (1.0 net) non-operated wells. In July 2011, Abraxas purchased a used Oilwell 2000 horsepower diesel electric drilling rig. In August 2010, the Company formed a joint venture, Blue Eagle, with Rock Oil to develop its acreage in the Eagle Ford Shale play. As of December 31, 2011, the Company owned a 34.7% interest in Blue Eagle. During 2011, Blue Eagle drilled, completed or participated in three gross (2.4 net) wells and added approximately 3,800 net acres to its holdings, principally in McMullen County, Texas.

As of December 31, 2011, the Company leased a total of approximately 20,720 gross (17,800 net) acres in the southern Powder River Basin, of which 17,800 gross (15,700 net) acres were located in the Brooks Draw field of Converse and Niobrara Counties, Wyoming. In addition, it owns approximately 2,100 net acres in sout! hern Camp! bell County, Wyoming which are held by production and are near the Crossbow field operated by EOG Resources, Inc. and other recent horizontal activity. As of December 31, 2011, the Company leased 6,880 net acres in western Alberta. In 2011, it drilled or completed six gross (6 net) wells in the Twining area. In the emerging southern Alberta Basin Bakken play of Toole and Glacier Counties, Montana, the Company leased approximately 10,000 gross/net acres under long-term leases or direct mineral ownership. As of December 31, 2011, it leased approximately 5,600 gross/net acres in Nolan County, Texas. In 2011, the Company drilled three wells in the Spires Ranch offsetting the prolific Nena Lucia field.

Advisors' Opinion:
  • [By Tyler Crowe]

    In the energy world, it's never much of a surprise when an oil company picks up natural gas assets or vice versa. But a coal company getting into the oil business? Now that's a rarity. This week, Natural Resources Partners (NYSE: NRP  ) �did just that. The company announced that it's taking a working interest in some of Abraxas Petroleums (NASDAQ: AXAS  ) assets in the Bakken. While the $35 million purchase was not that large, it's a rare case where a coal company branches out into other natural resources.�

  • [By Rich Duprey]

    With steam coal prices continuing to be weak due to the inroads made by natural gas, Natural Resource Partners (NYSE: NRP  ) has decided if you can't beat 'em, join 'em. It announced Monday it is buying producing�oil and gas�properties located in the Williston Basin of North Dakota and Montana from�Abraxas Petroleum (NASDAQ: AXAS  ) for $35.3 million in cash.

Top 10 Oil Stocks To Invest In Right Now: Transportadora de Gas del Sur SA (TGS)

Transportadora de Gas del Sur S.A. (TGS) is engaged in the transportation of natural gas and production and commercialization of natural gas liquids (NGL). TGS�� pipeline system connects major gas fields in southern and western Argentina with gas distributors and industries in those areas and in the greater Buenos Aires area. The Company also renders midstream services, which consist of gas treatment, removal of impurities from the natural gas stream, gas compression, wellhead gas gathering and pipeline construction, operation, and maintenance services. The Company operates in three segments: natural gas transportation services through its pipeline system; NGL production and commercialization, and other services, which include midstream and telecommunication services.

During the year ended December 31, 2009, the Company�� gas transportation represented approximately 42% of total net revenues. During 2009, its NGL production and commercialization segment accounted for 50% of the total revenues of the Company. During 2009, its other services segment accounted for 8% of total revenues of the Company. Its other services segment consists of midstream and telecommunications services. Through midstream services, TGS provides integral solutions related to natural gas from wellhead up to the transportation systems. The services consists of gas gathering, compression and treatment, as well as construction, operation and maintenance of pipelines, which are generally rendered to natural gas and oil producers at wellhead. The customers��portfolio also includes distribution companies, industrial users, power plants and refineries.

During 2009, the Company provided a range of technical services to different customers. The services consisted of connections to the transportation system, engineering inspections, project management and professional technical counseling. Telecommunication services are provided through Telcosur S.A. (Telcosur), who renders services both as an independent c! arrier of carriers and to corporate clients within its area. Telcosur has a digital land radio connection system.

Advisors' Opinion:
  • [By Sofia Horta e Costa]

    Telecom Italia SpA (TIT) lost 1.8 percent as Standard & Poor�� said it may downgrade the phone company�� debt to non-investment grade. TGS Nopec Geophysical Co. (TGS) tumbled the most in two years after reducing its revenue forecast. Celesio AG jumped to a three-year high on a report that McKesson Corp. may buy the German drug distributor.

  • [By Corinne Gretler]

    TGS (TGS) slumped 7.4 percent to 176.90 kroner as Norway�� largest surveyor of underwater oil-and-gas fields lowered its forecast for full-year revenue to $920 million to $1 billion because of lower-than-expected demand from industry. It had projected sales of $970 million to $1.05 billion.

  • [By Dividend]

    Transportadora de Gas Del Sur S.A. (TGS) has a market capitalization of $308.26 million. The company employs 829 people, generates revenue of $466.44 million and has a net income of $43.33 million. Transportadora de Gas Del Sur�� earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $170.33 million. The EBITDA margin is 36.52 percent (the operating margin is 27.41 percent and the net profit margin 9.29 percent).