Why American Vanguard's Earnings May Not Be So Hot

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

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

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

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

Over the past 12 months, American Vanguard generated $13.6 million cash while it booked net income of $45.0 million. That means it turned 3.4% of its revenue into FCF. That sounds OK. However, FCF is less than net income. Ideally, we'd like to see the opposite.

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

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

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

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

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

With questionable cash flows amounting to only 7.4% of operating cash flow, American Vanguard's cash flows look clean. Within the questionable cash flow figure plotted in the TTM period above, changes in taxes payable provided the biggest boost, at 15.1% of cash flow from operations. Overall, the biggest drag on FCF came from changes in accounts receivable. American Vanguard investors may also want to keep an eye on accounts receivable, because the TTM change is 3.7 times greater than the average swing over the past 5 fiscal years.

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

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

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The Story of J.P. Morgan, the Most Powerful Bank in America

On this day in economic and business history ...

Like many aspiring bankers of the mid-19th century, young John Pierpont Morgan got into the business of finance with the help of some old-fashioned family connections. From 1857 through 1871, J.P. Morgan worked his way up through the industry, first as a representative of his father's London-based firm, then as an independent agent for that firm under a self-named company. In 1864, the younger Morgan joined with Charles Dabney to form Dabney, Morgan, & Co., where he would remain for seven years.

It was on June 30, 1871, that J.P. Morgan finally moved on to form the bank that would bear his name for more than a century. Dabney, Morgan, & Co. was dissolved and replaced by Drexel, Morgan & Co., a partnership Morgan had formed with Philadelphia banker and Drexel University founder Anthony J. Drexel. This bank is the one from which today's JPMorgan Chase (NYSE: JPM  ) traces its most direct lineage, even though the Chase half of the megabank actually predates Morgan's firm by four decades.

Morgan's merchant bank was initially meant as a conduit for wealthy Europeans to invest in American business interests. This deep early connection to European interests would be of lifelong benefit to Morgan, whose occasional efforts to save America's gold-backed financial system in the days before the Federal Reserve were bolstered -- particularly in the Panic of 1893's aftermath -- by connections in Europe who would supply vital liquidity at his request.

Despite his pivotal role in stemming the panic, Morgan's firm did not escape the financial crash, and in 1893, Drexel, Morgan recorded its first million-dollar loss. Two years after the Panic (and the death of Drexel), Morgan changed his bank's name to simply J.P. Morgan & Co. This bank, "The House of Morgan," would be John Pierpont's base of operations during the most legendary stretch of banking power, wielded by only one man, that the United States has ever seen.

The first Morgan megadeal actually took place in 1892, when he brought Thomas Edison's company together with several other leading electric ventures to form General Electric (NYSE: GE  ) . Morgan's greatest triumph came in 1901, when he formed U.S. Steel (NYSE: X  ) , the first billion-dollar company in American history. A year later, Morgan merged farm-implement pioneer McCormick with other agricultural equipment companies to create International Harvester, the predecessor of Navistar. All three of these companies held spots on the Dow Jones Industrial Average (DJINDICES: ^DJI  ) for decades at a time, which -- when including JPMorgan Chase itself -- makes J.P. Morgan the only businessman in American history directly responsible for the creation of four Dow components, past or present.

It's also particularly notable that Morgan is responsible for creating two of the world's largest companies. U.S. Steel's billion-dollar market cap gave it a huge head start over its peers, and GE had a five-year run on top of the corporate world from 1993 to 1998.

Source: Historic American Engineering Record, taken by Martin Stupich.

Morgan also played a pivotal role in creating the Federal Reserve. As a "Fed of one," Morgan is virtually singlehandedly credited with stemming the Panic of 1907. His actions during the crisis included a last-minute buyout of Tennessee Coal Iron and Railroad by U.S. Steel that avoided a cascading chain reaction of brokerage bankruptcies -- the Lehman Brothers of 1907 was significantly overextended on Tennessee stock. This effort, ramrodded through antitrust concerns thanks to President Theodore Roosevelt's reluctant pledge of immunity, is generally seen as the move that ended the crisis.

Morgan's advanced age, combined with his unprecedented degree of influence, made many on Wall Street and Washington realize that there had to be a more reliable backstop to the financial system. Six years later, the Federal Reserve was formed. Morgan died the same year, leaving behind a legacy of financial modernization and lumbering megacorporations that would define American business before the onset of the Great Depression. Morgan left behind an estate worth about $80 million (equal to nearly $2 billion today), and on hearing of this sum, oil baron John D. Rockefeller was heard to quip, "and to think, he wasn't even a rich man."

J.P. Morgan & Co. continued to thrive after Morgan's death, as John Pierpont Morgan Jr. stepped into leadership of his father's bank. Under Junior's leadership, the Morgan bank became a major financier of World War I, and after the war it assumed management of Germany's reparation payments. The Great Depression and the subsequent sweeping financial reforms implemented during President Franklin D. Roosevelt's first term severely eroded J.P. Morgan & Co.'s power, particularly once the Glass-Steagall legislation forced it to get out of the investment-banking field. This led to the creation of Morgan Stanley (NYSE: MS  ) by J.P. Morgan's grandson Henry Morgan and former Morgan investment banker Harold Stanley in 1935. The new investment bank immediately became a major player on Wall Street, gobbling up a quarter of the entire industry's business during its first year.

Source: Michael Daddino via Flickr .

The J.P. Morgan name was abandoned in the 1950s in favor "Morgan Guaranty Trust." The bank used this name until 1988, and by the late '90s J.P. Morgan had built itself into a respectable (but not dominant) bank with a sterling brand. The merger that re-established J.P. Morgan as the leading name of its industry took place in 2000, when Chase Manhattan merged with the House of Morgan to create JPMorgan Chase. It is now the largest bank by assets in the world.

Many investors are terrified about investing in big banking stocks after the crash, but the sector has one notable standout. In a sea of mismanaged and dangerous peers, it rises above as "The Only Big Bank Built to Last." You can uncover the top pick that Warren Buffett loves in The Motley Fool's new report. It's free, so click here to access it now.

These 3 States Love Nuclear

Nuclear power has been a hot-button issue over the past few years due to safety concerns and energy security concerns in the U.S. and abroad. Despite what many thought, the U.S. isn't just holding steady with nuclear power, it's expanding.

The loan guarantee program that started in 2005 to promote alternative energy sources was expanded in the 2009 Recovery Act and has more funding for nuclear power than any other power source.  Yes, the same program that provided a loan guarantee to Solyndra and Tesla Motors is providing billions in loan guarantees and direct government loans to expand the nuclear industry. Plus, the government limits the liability a nuclear plant owner has in the case of a disaster.

So, which states are going all-in on nuclear power? The leaders might surprise you.

The top three nuclear states
The state with by far the most nuclear capacity is Illinois with 11.5 GW out of 43.8 GW of capacity, or 26% of the power available in the state. The area around Chicago is densely populated with nuclear plants, making it the largest nuclear state.  

Second on the list is Pennsylvania, the same state that's producing cheap natural gas that's making coal and nuclear power a tough sell economically and politically. 9.6 GW of the state's capacity is nuclear, 21% of the 45.8 GW in the state.

Third on the list is South Carolina, which has 6.5 GW, or 27% of its 24.1 GW of capacity from nuclear power. South Carolina is actually the regional hub of nuclear power in the U.S., with neighboring North Carolina and Georgia also in the top eight states for nuclear power. In fact, the southeastern U.S. is going to get even more of its power from nuclear in coming years.  

A nuclear renaissance... or not?
In Georgia, Southern Company (NYSE: SO  ) is building two new 1.1 GW reactors at its Vogtle nuclear facility, the first built in the U.S. in 30 years. When operational, they'll bring the state into fourth place in the U.S.  

But the nuclear renaissance some predicted won't bring much more capacity to the industry. NRG Energy (NYSE: NRG  ) gave up on a $10 billion plant last year and took a $481 million financial hit in the process. UniStar's request for a license to operate a third reactor at Calvert Cliffs, Md., was denied this year and that project appears to be all but dead. Warren Buffett's MidAmerican Energy also abandoned a nuclear power plant proposal this year, so momentum for the industry isn't strong.

Nuclear isn't going anywhere
Nuclear power may not be expanding as rapidly as some hoped but it's still a clean-burning energy source and the power plants in operation will be there for years to come. Nuclear power accounts for just under 10% of the power-generating capacity in the U.S., only behind natural gas and coal for power sources.

With the swelling of the global middle class, energy consumption will skyrocket over the next few decades, but nuclear power may not be the winner because of low-cost alternatives. We've picked one incredible energy company that presents a rare "double-play" investment opportunity today. We're calling it "The One Energy Stock You Must Own Before 2014," and you can uncover it today, totally free, in our premium research report. Click here to read more.

How to Invest in the Next Major Oil Field

The Cline Shale is a lot busier than it was six months ago.

 

I just returned from visiting the area with my friend Cactus Schroeder. Cactus is one of the smartest men you'll find in the oil business. He's been drilling for oil in Texas for more than 30 years... with personal interests in over 1,000 drilling projects.

 

Right now, Cactus is drilling like crazy in the Cline. He believes it's "one of the greatest shale areas this country has ever seen."

 

That's a bold statement from someone who lived in North Dakota – home to the massive Bakken Shale. He's also drilled wells in the Eagle Ford, another massive shale regions in southern Texas.

 

The good news for investors is this area is still well under Wall Street's radar. But I don't expect it to stay that way for long...

 

The Cline Shale is located in western Texas. It lies roughly 9,000 feet below the surface in an area known as the Permian Basin (shaded below). It runs about 140 miles long and 70 miles wide.

 

 

The Cline is in its early stages of development. But Special Core Analysis Labs, a reputable 24-year-old core oil-and-gas analysis firm in Texas, predicts there are 3 million barrels of oil per square mile located in the Cline. Based on the region's roughly 10,000 square miles, it could amount to a massive 30 billion barrels of oil. At current demand, that's enough oil to supply the entire U.S. for more than four years.

 

By comparison, the Eagle Ford has an estimated 26 billion barrels. And the Bakken Shale has roughly 13 billion barrels, according to oil-and-gas giant Pioneer Natural Resources.

 

This was my second visit to the Cline. On my last visit in October, most of the towns in the region had populations of less than 1,000 people. The roads were empty. Cactus and I would drive for 50 miles without seeing a single person.

 

Today – just eight months later – the scene has changed.

 

There are now several independent companies with water pits along route 180, a major highway that runs through the Cline. (Fracking a well requires millions of gallons of water – laced with sand and chemicals – shot underground to blast apart rock and retrieve oil or gas. This water is stored in open pits located near drill sites.) I also noticed dozens of billboards with ads for oil-and-gas services.

 

Cities like Abilene and Midland (located just outside the Cline) are becoming crowded. Cactus tells me oil-services workers are buying apartments in these areas and commuting over an hour to work. And industry insiders believe oil services giant Weatherford International is opening a huge plant in Abilene.

 

As we drove through these counties, we saw a lot more drilling rigs. Keep in mind, most of western Texas is desolate. The 100- to 200-foot-tall drilling rigs look like skyscrapers in the middle of a desert. And Cactus tells me this is just the beginning...

 

You see, the Cline is still in its early stages of development. It's not even close to what we are seeing in the Eagle Ford and Bakken in terms of the number of new homes being built. The towns that sit on top of these shales have Wal-Marts and crowded restaurants. That means business is just starting to boom in the Cline Shale region... investors can still make money as the number of major oil and gas finds in the area continues to grow...

 

The major players in the Cline Shale include giants Pioneer Natural Resources (PXD) and Devon Energy (DVN). Pioneer holds over 900,000 acres and Devon holds over 600,000.

 

Both stocks have market caps around $20 billion. However, I like Devon better than Pioneer today. The stock is trading at just 10 times forward earnings and near its 52-week low after disappointing investors last quarter. That means expectations are low. Plus, Devon is committed to drilling at least 30 new wells in the Cline this year.

 

Other players include oil and gas producers Apache (APA) and Range Resources (RRC). Kinder Morgan Energy Partners (KMP) is a great infrastructure play. The company is planning to build pipelines throughout the region.

 

These three names have much less exposure to the Cline than Devon and Pioneer. But they will see huge profits if the Cline turns out to be as big as Cactus predicts.

 

Good investing,

 

Frank Curzio

P.S. In October, I told my Small Stock Specialist subscribers about a small company that owns nearly 200,000 acres of land in the Cline Shale region. The company's valuable land holdings make it a perfect takeover target for the major producers moving into the area... The stock has triple-digit upside potential as this small, oil-rich region becomes "The Next Eagle Ford." To learn more about Small Stock Specialist – and how to access my research – click here.

Best Electric Utility Companies To Invest In Right Now

No investor is a bigger superstar than Berkshire Hathaway's (NYSE: BRK-A  ) (NYSE: BRK-B  ) Warren Buffett. But the beauty of Berkshire Hathaway stock is that even when Buffett is no longer able to run the company, the tenets that have guided his investment decisions will remain in place for his successors to follow for decades to come. Let's take a closer look at why Berkshire Hathaway stock offers good long-term prospects even after its recent run to record highs.

Berkshire's one-stop shop for investors
Even among conglomerates, you won't often find the breadth of industry coverage that you'll see among Berkshire's mix of businesses. Among the largest parts of Berkshire are its core insurance business, with its GEICO unit being the best-known insurance carrier in the mix; the railroad company Burlington Northern Santa Fe, which it purchased in early 2010; and its majority stake in MidAmerican Energy, which provides electric utility services as well as operating power-generation facilities using both conventional fuels and renewable generation methods like wind.

Best Electric Utility Companies To Invest In Right Now: PIMCO Municipal Income Fund(PMF)

PIMCO Municipal Income Fund is a closed ended fixed income mutual fund launched and managed by Allianz Global Investors Fund Management LLC. It is co managed by Pacific Investment Management Company LLC. The fund invests in the fixed income markets of the United States. It primarily invests in investment grade municipal bonds. The fund employs fundamental analysis with a top down stock picking approach to create its portfolio. It conducts in house research using proprietary models. PIMCO Municipal Income Fund was formed on June 29, 2001 and is domiciled in the United States.

Best Electric Utility Companies To Invest In Right Now: Huntsman Corporation(HUN)

Huntsman Corporation engages in the manufacture and sale of differentiated organic and inorganic chemical products worldwide. The company offers polyurethane chemicals, including methyl diphenyl diisocyanate, propylene oxide, polyols, propylene glycol, thermoplastic polyurethane, aniline, and methyl tertiary-butyl ether products, which are used to produce rigid and flexible foams, as well as coatings, adhesives, sealants, and elastomers; and performance products, such as amines, carbonates, surfactants, linear alkyl benzene, maleic anhydride, performance chemicals, ethylene glycol, olefins, and technology licenses. It also provides advanced materials comprising epoxy resin compounds and formulations; cross-linking, matting agents, and curing agents; and epoxy, acrylic and polyurethane-based adhesives, and tooling resin formulations. In addition, Huntsman Corporation offers textile chemicals, dyes, and titanium dioxide. The company?s products are used in various applicatio ns, including adhesives, aerospace, automotive, construction products, durable and non-durable consumer products, electronics, medical, packaging, paints and coatings, power generation, refining, synthetic fiber, textile chemicals, and dye industries. Huntsman Corporation was founded in 1970 and is based in Salt Lake City, Utah.

Advisors' Opinion:

• [By Michael]

  Huntsman Corporation (HUN) engages in the manufacture and sale of differentiated organic and inorganic chemical products on a global scale. It has also been given a buy-rating by UBS Investment Research. UBS estimates that for every 10% change in the margin of Propylene Oxide, earnings per share would change b y 5 cents for Huntsman Corporation. Shares of the company are currently trading at $11.2 per share and have traded between $8.13 and $21.52 over the last 52 weeks. Calanese Corporation (CE), a manufacturer and marketer of chemical products, is a competitor of Huntsman Corporation. Huntsman reported a dividend yield of 3.6%, while Calanese reported a dividend yield of 0.5%. Return-on-equity was reported at 10.5% for Huntsman and 51.6% for Calanese. Calanese also generated higher profit and operating margins than Huntsman. There were equal number of hedge funds in each stock, however hedge funds' bet more dollars on Calanese. One of our favorite hedge funds, Third Point, initiated a brand new position in CE during the third quarter. That's why we pick CE over HUN.

10 Best Up And Coming Stocks To Buy For 2014: HopFed Bancorp Inc.(HFBC)

HopFed Bancorp, Inc. operates as the holding company for Heritage Bank that provides various banking products and services primarily in western Kentucky, and middle and western Tennessee. The company offers a range of deposit products, including demand deposits, time deposits, money market accounts, passbook savings accounts, individual retirement accounts, and certificates of deposit. Its loan portfolio comprises one-to-four family residential loans, multifamily residential loans, construction loans, nonresidential loans, commercial real estate loans, and land and land development loans, as well as loans secured by deposits, other consumer loans, and commercial loans. The company, through its subsidiary, Fall and Fall Insurance Agency, sells life and casualty insurance products to individuals and businesses. HopFed Bancorp offers its products and services through its branch offices located in Hopkinsville, Murray, Cadiz, Elkton, Fulton, Calvert City, and Benton, Kentucky; and in Clarksville, Pleasant View, Ashland City, Kingston Springs, and Erin, Tennessee. The company was founded in 1879 and is headquartered in Hopkinsville, Kentucky.

Best Electric Utility Companies To Invest In Right Now: Stealth Minerals Limited (SML.V)

Stealth Minerals Limited, a development stage company, engages in the acquisition, exploration, and development of mineral properties in Canada. The company principally explores for copper, silver, and gold prospects. It primarily holds interest in the Toodoggone Property covering an area of approximately 22,096 hectares in the Toodoggone River region of north central British Columbia. The company was incorporated in 1993 and is headquartered in North Vancouver, Canada.

Top 10 Healthcare Technology Companies For 2014

LONDON -- Stock index futures at 7 a.m. EDT indicate that both the Dow Jones Industrial Average (DJINDICES: ^DJI  ) and the S&P 500 (SNPINDEX: ^GSPC  ) may open about 0.1% lower this morning. After finishing yesterday at 22, or "extreme fear," CNN's Fear & Greed Index has risen to 27.

European markets are broadly flat this morning after a volatile week. As of 7 a.m. EDT, the FTSE 100 is down a negligible three points, Germany's DAX is up 0.53%, and France's CAC 40 is up 0.35%. New figures showed that employment levels across the eurozone fell by 0.5% during the first quarter of this year, while inflation across the eurozone rose by 1.4% on a year-on-year basis, in line with expectations.

Today sees a raft of U.S. economic data published, which may impact market sentiment during the day. First up, at 8:30 a.m. EDT, May's producer price index is expected to show that prices rose by 0.1% in May after falling by 0.7% in April, while core PPI is expected to have risen by 0.1% in May after rising 0.1% in April. At 9:15 a.m. EDT, industrial output is expected to have risen by 0.1% in May after falling 0.5% in April, while capacity utilization is expected to remain unchanged at 77.8%. Finally, at 9:55 a.m. EDT, the latest University of Michigan Consumer Sentiment Index is expected to show a rise to 84.7 in June from 84.5 in May.

Top 10 Healthcare Technology Companies For 2014: Group 1 Automotive Inc. (GPI)

Group 1 Automotive, Inc., through its subsidiaries, engages in the marketing and sale of automotive products and services. It sells new and used cars, light trucks, and vehicle parts. The company also provides vehicle financing services; service and insurance contract services; and automotive maintenance and repair services. The company has operations located in metropolitan areas in the states of Alabama, California, Florida, Georgia, Kansas, Louisiana, Maryland, Massachusetts, Mississippi, New Hampshire, New Jersey, New York, Oklahoma, South Carolina, and Texas in the United States; and in the towns of Brighton, Hailsham, and Worthing in the United Kingdom. As of October 25, 2012, it owned and operated 121 automotive dealerships, 158 franchises, and 30 collision centers in the United States and the United Kingdom that offer 32 brands of automobiles. The company was founded in 1995 and is headquartered in Houston, Texas.

Top 10 Healthcare Technology Companies For 2014: Ellie Mae Inc (ELLI)

Ellie Mae, Inc., incorporated October 14, 2007, is a provider of on-demand automation solutions for the mortgage industry. The Company offers an end-to-end solution, delivered using a Software-as-a-Service model that serves as the core operating system for mortgage originators and spans customer relationship management, loan origination and business management. It also hosts the Ellie Mae Network that allows Encompass users to electronically conduct business transactions with the lenders and settlement service providers they work with to process and fund loans. The Company's offerings include range of Encompass services and the DataTrac mortgage management software system. On August 15, 2011, it completed the acquisition of Del Mar Datatrac,Inc. (DMD).

Using the Company�� network technology, it has helped connect a fragmented world of mortgage bankers, mortgage brokers, community banks, credit unions, lenders, investors and service providers, all of which are integral to the origination and funding of residential mortgages. Its Encompass360 solutions include Encompass Product & Pricing Service; Ellie Mae Total Quality Loan Program; Encompass Compliance Service; Encompass Appraisal Service; Encompass CenterWise; Encompass Commissions; Encompass TPO WebCenter and Encompass Docs Solution.

Ellie Mae�� Total Quality Loan program helps in identifying compliance, income and fraud issues early in the origination process; help protect business from loan buy-backs, and fortify workflow and uncover and correct possible issues before you close the loan.Encompass Appraisal Service, integrated inside Encompass360, is that solution helps in completing order right from the loan file in Encompass360; import complete appraisal reports directly into eFolder, and customize appraisal workflow by type of loan and control, which its users can order appraisals. Its Encompass CenterWise wraps two essential Web and electronic document solutions into one unified package. Encompass Commissions is a ! commission management solution integrated inside Encompass360 that automates the calculation, reconciliation and communication of variable pay across your organization. Hosted Encompass360 Banker Edition users can connect directly with third-party originators (TPOs) without leaving Encompass360, and have them connect back in a secure, synchronized, and easy-to-use Web-based environment. Encompass Docs Solution provides a single, integrated application incorporating both initial disclosures and closing documents.

Advisors' Opinion:

• [By Ed Carson]

  Ellie Mae's loan origination software has been in high demand as mortgage activity rebounds. Revenue growth accelerated for four quarters, from 17% to 106%, before cooling to "only" 87% in the latest report.

  Shares tried to break out of a consolidation on Jan. 2, but the attempt failed. Ellie may continue to set up. The stock did touch its 50-day average on Thursday, rising modestly Friday.

Best Financial Stocks To Own Right Now: Empresas Ica Soc Contrladora (ICA)

Empresas ICA, S.A.B. de C.V., through its subsidiaries, engages in the construction and related activities in Mexico. The company?s Civil Construction segment focuses on infrastructure projects that include the construction of roads, highways, mass transit systems, bridges, dams, hydroelectric plants, tunnels, canals, and airports; and on the construction, development, and remodeling of multi-storied urban buildings, such as office buildings, hotels, multiple-dwelling housing developments, and shopping centers. This segment also engages in demolition, clearing, excavation, de-watering, drainage, embankment fill, structural concrete construction, concrete and asphalt paving, and tunneling activities. Its Industrial Construction segment focuses on the engineering, procurement, construction, design, and commissioning of manufacturing facilities comprising power plants, chemical plants, petrochemical plants, fertilizer plants, pharmaceutical plants, steel mills, paper mills, d rilling platforms, and automobile and cement factories. Empresas ICA?s Rodio Kronsa segment engages in sub-soil construction involving the construction of tunnels, underpasses, and retaining walls. The company?s Housing Development segment engages in the development, trading, ownership, sale, assistance, operation, and administration activities. Its Infrastructure segment involves in the operation and maintenance of concessioned airports, highways, bridges and tunnels, water supply systems, and waste treatment systems. The company also provides a range of services that include feasibility studies, conceptual design, engineering, procurement, project and construction management, construction, maintenance, technical site evaluation, and other consulting services. It serves public and private sector clients. Empresas ICA, S.A.B. de C.V. was founded in 1947 and is based in Mexico.

Top 10 Healthcare Technology Companies For 2014: Nuveen Virginia Premium Income Municipal Fund (NPV)

Nuveen Virginia Premium Income Municipal Fund is a closed-ended fixed income mutual fund launched by Nuveen Investments, Inc. The fund is co-managed by Nuveen Fund Advisors, Inc. and Nuveen Asset Management, LLC. It invests in the fixed income markets of Virginia. The fund invests primarily in municipal securities rated Baa/BBB or better. It invests in securities that provide income exempt from federal and Virginia income tax. The fund employs fundamental analysis with bottom-up stock picking approach to create its portfolio. It benchmarks the performance of its portfolio against the S&P National Municipal Bond Index and the S&P Virginia Municipal Bond Index. Nuveen Virginia Premium Income Municipal Fund was formed on January 12, 1993 and is domiciled in the United States.

Top 10 Healthcare Technology Companies For 2014: Fti Foodtech International Inc. (FTI.V)

FTI Foodtech International Inc. operates in the surplus goods industry. The company has multiple products and multiple buyers. It operates the Toronto office of the North American Barter Exchange Limited (NABEL) that provides business to business communications for its members� products and services. FTI Foodtech International, through NABEL, has access to hundreds of member-companies that provide products and services in North America. In addition, the company distributes Ageless, an oxygen absorber, to new and existing clients. FTI Foodtech International Inc. is headquartered in Don Mills, Canada.

Top 10 Healthcare Technology Companies For 2014: PNM Resources Inc.(Holding Co.)

PNM Resources, Inc., together with its subsidiaries, operates in energy and energy-related businesses in the United States. It primarily engages in the generation, transmission, and distribution of electricity. The company generates electricity using coal, nuclear, natural gas, and wind energy. It also provides regulated transmission and distribution services. PNM Resources, through its 50% interest in Optim Energy, focuses on unregulated electric operations, including the development, operation, and ownership of diverse generation assets and wholesale marketing principally within the areas of Texas. As of December 31, 2009, the company had a generation capacity of approximately 2,336 megawatts. It provides electricity primarily to residential, commercial, and industrial customers. The company was founded in 1917 and is based in Albuquerque, New Mexico.

Top 10 Healthcare Technology Companies For 2014: EPIQ Systems Inc. (EPIQ)

Epiq Systems, Inc. provides integrated technology solutions for the legal profession in the United States and internationally. Its solutions streamline the administration of discovery, bankruptcy, litigation, financial transactions, and regulatory compliance matters. The company operates in three segments: eDiscovery, Bankruptcy, and Settlement Administration. The eDiscovery segment provides collections and forensics, processing, search and review, and document review services to companies and the litigation departments of law firms. The Bankruptcy segment provides solutions that address the needs of Chapter 7, Chapter 11, and Chapter 13 trustees to administer bankruptcy proceedings, of debtor corporations that file a plan of reorganization, and assists creditors, including banks, mortgage processors, and their administrative services professionals to streamline the processing of their portfolios of loans in bankruptcy cases. The Settlement Administration segment offers ma nagement services, such as claims processing, claims reconciliation, project management, professional services, call center support, Web site development and administration, and controlled disbursements of funds, as well as legal noticing services. Epiq Systems, Inc. serves law firms, corporate legal departments, bankruptcy trustees, government agencies, mortgage processors, financial institutions, and other professional advisors. The company was founded in 1988 and is headquartered in Kansas City, Kansas

Top 10 Healthcare Technology Companies For 2014: Commerce Bancshares Inc.(CBSH)

Commerce Bancshares, Inc. operates as the bank holding company for Commerce Bank, N.A. that provides various general banking services to individuals and businesses. It operates in three segments: Consumer, Commercial, and Wealth. The Consumer segment includes the retail branch network, consumer installment lending, personal mortgage banking, consumer debit and credit bank card activities, and student lending. The Commercial segment provides various corporate lending, merchant and commercial bank card products, leasing, and international services, as well as business and government deposit and cash management services. The Wealth segment offers traditional trust and estate tax planning services, brokerage services, and advisory and discretionary investment portfolio management services to personal and institutional corporate customers. This segment also manages a family of proprietary mutual funds, which are available for sale to trust and general retail customers. The comp any, through its other non-banking subsidiaries, involves in underwriting credit life and credit accident, and health insurance; selling property and casualty insurance; private equity investment; securities brokerage; mortgage banking; and leasing activities. It serves customers through a network of branches and ATM machines, online banking, and a central contact center from approximately 370 locations in Missouri, Kansas, Illinois, Oklahoma, and Colorado. Commerce Bancshares, Inc. was founded in 1966 and is headquartered in Kansas City, Missouri.

Top 10 Healthcare Technology Companies For 2014: Astrotech Corporation(ASTC)

Astrotech Corporation operates as a commercial aerospace company in the United States. The company provides spacecraft payload processing and related services; designs and manufactures space hardware; and commercializes space technologies for use on the earth. It also offers satellite launch processing support to government and commercial customers for their communication, earth observation, and deep space satellites. The company?s processing activities consist of satellite ground transportation; pre-launch hardware integration and testing; satellite encapsulation, fueling, launch pad delivery; and communication linked launch control, as well as engineering services. In addition, it develops Miniature Chemical Detector, a chemical analyzer for use on international space station, as well as detects residues and vapors from a range of chemicals, including explosives, chemical warfare agents, toxic chemicals, and volatile organic compounds. The company serves the United Stat es Government and commercial satellite and spacecraft customers. Astrotech Corporation was founded in 1984 is headquartered in Austin, Texas.

Top 10 Healthcare Technology Companies For 2014: Weatherford International Ltd(WFT)

Weatherford International Ltd. provides equipment and services used in the drilling, evaluation, completion, production, and intervention of oil and natural gas wells worldwide. It offers artificial lift systems, which include reciprocating rod lift systems, progressing cavity pumps, gas lift systems, hydraulic lift systems, plunger lift systems, hybrid lift systems, wellhead systems, and multiphase metering systems. The company also provides drilling services, including directional drilling, ?Secure Drilling? services, well testing, drilling-with-casing and drilling-with-liner systems, and surface logging systems; and well construction services, such as tubular running services, cementing products, liner systems, swellable products, solid tubular expandable technologies, and inflatable products and accessories. In addition, it designs and manufactures drilling jars, underreamers, rotating control devices, and other pressure-control equipment used in drilling oil and nat ural gas wells; and offers a selection of in-house or third-party manufactured equipment for the drilling, completion, and work over of oil and natural gas wells for operators and drilling contractors, as well as a line of completion tools and sand screens. Further, the company provides wireline and evaluation services; and re-entry, fishing, and thru-tubing services, as well as well abandonment and wellbore cleaning services; stimulation and chemicals, including fracturing and coiled tubing technologies, cement services, chemical systems, and drilling fluids; integrated drilling services; and pipeline and specialty services. It serves independent oil and natural gas producing companies. The company was founded in 1972 and is headquartered in Geneva, Switzerland.

Advisors' Opinion:

• [By Tom Bishop]

  Weatherford International (WFT) is trading around $14. Weatherford is a leading provider of equipment and services to the oil and gas industry, based in Switzerland. These shares have traded in a range betwe en $10.85 to $26.25 in the last 52 weeks. The 50-day moving average is $15.46 and the 200-day moving average is $19.62. WFT is estimated to earn about 88 cents per share in 2011 and $1.67 for 2012. Analysts at UBS set a $28 price target for WFT share.

Is It Time for Barnes & Noble to Throw In the Towel?

Barnes & Noble storefront, Fifth Ave., New York. Source: BN.com.

Shares of Barnes & Noble  (NYSE: BKS  ) plummeted more than 17% Tuesday after the company turned in dismal fiscal fourth-quarter results. But does this mean all hope is lost for the struggling company to survive over the long term?

First, some perspective
Back in February, I wondered just how many strikes Barnes & Noble would get until it finally threw in the towel.

To be sure, the company had just performed an about-face from its previously optimistic comments regarding the Nook segment, warning investors to expect an fiscal 2013 EBITDA loss from Nook Media that would exceed the segment's $262 million loss in 2012.

Even so, I also noted that Barnes & Noble's core comparable-store sales -- which excludes sales of Nook products -- actually exceeded the company's expectations by falling only 3.1%. What's more, Barnes & Noble did have around $471 million in cash with a relatively manageable debt-to-equity ratio of 0.28 at the end of its previous quarter, so it looked unlikely that the beleaguered bookseller would be going bankrupt anytime in the immediate future.

Survey says?
Fast-forward to Tuesday's results, and Barnes & Noble's consolidated fourth-quarter revenue decreased 7.4% to $1.3 billion. In addition, its consolidated fourth-quarter net loss was $118.6 million, or more than double last year's $56.9 million loss. Fourth-quarter net losses per share, on the other hand, came in at $2.11, compared to a net loss of $1.06 per share during the company's fiscal 2012.

Sure enough, it turns out the Nook segment ended up costing Barnes & Noble a whopping $475 million during fiscal 2013, or nearly 82% more than last year's aforementioned EBITDA loss. 

In the meantime, while the core Retail segment's earnings did mange to grow 16% for the full-year 2013 to $374 million, its fourth-quarter results were less than compelling, with EBITDA falling 23.9% to $51 million. Fourth-quarter Retail revenue, for its part, dropped 10% to $948 million, hurt by store closures, lower online sales, and a painful comparable-store sales drop of 8.8%.

According to the folks at Barnes & Noble, those comparable-store sales decreases were caused primarily by "lower Nook unit volume and a stronger title lineup in the prior year period including The Hunger Games and Fifty Shades of Grey trilogies." And though digital sales did increase 16.2% for the full year, they actually decreased 8.9% for the fourth quarter, Barnes & Noble says, thanks again to a tough act to follow after those pesky popular trilogies last year.

Call me a skeptic, but...
To me, it seems a tad silly to place the blame on last quarter's mediocre book selection.

Of course, I suppose Barnes & Noble wouldn't necessarily want to point out the fact that they were tardy, to say the least, in finally introducing in-app purchasing on the Nook at the end of March. Or maybe, just maybe, it could be that the Nook is ridiculously outmatched by two superior tablet alternatives offered to consumers in the form of Amazon.com's Kindle devices and Apple's iPad lineup.

Unfortunately, this quarter's core comparable retail sales -- one of the few bright notes last quarter -- offered little reason for optimism this time around, falling 5.8% to remain essentially flat for the year.

It should come as no surprise, then, that Barnes & Noble's press release says the company has decided to (at least partially) throw in the towel, with plans to "significantly reduce losses in the Nook segment by limiting risks associated with manufacturing." Namely, that means B&N will partner in a co-branding effort with yet-to-be-announced "third party manufacturers of consumer electronics products."

In addition, Barnes & Noble will continue building its digital catalog by adding books and launching new Nook apps.

Foolish takeaway
In the end, that'll certainly go a long way toward stopping the bleeding, but that doesn't change the fact that the company's core comparable retail sales are also falling at an increasing rate.

Of course, the company does have some time to right its wrongs, especially considering it ended its fiscal year with just over $160 million in the bank, and having borrowed just $77 million under its $1 billion revolving credit facility.

From an investing standpoint, however, it's not exactly an appealing idea to buy shares in a company with a deteriorating core business simply because it can rack up additional debt to hold it over. In order for Barnes & Noble to prove its worth to shareholders, then, it'll need to show significant tangible progress toward sustained profitability.

In the meantime, there are much better places to put your hard-earned investing dollars to work.

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

5 Best Communications Equipment Stocks To Buy Right Now

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The Top Ten Stocks for April 5

U.S. stocks fell, capping the biggest weekly decline of the year for the Standard & Poor�� 500 Index, after data showed the nation added less than half the number of jobs economists forecast in March.

American Express Co. and Coca-Cola Co. slid at least 1.1 percent to pace losses among the largest companies. F5 Networks Inc. (FFIV) lost 19 percent, leading declines among technology shares, after reporting preliminary results below its forecast. Cisco Systems Inc. and Juniper Networks Inc., makers of communications equipment, fell more than 2 percent. Hewlett-Packard Co. fell 1.5 percent after announcing a shakeup of its board.

5 Best Communications Equipment Stocks To Buy Right Now: Cisco Systems Inc (CSCO.O)

Cisco Systems, Inc., incorporated on December 10, 1984, designs, manufactures, and sells Internet protocol (IP)-based networking and other products related to the communications and information technology (IT) industry and provide services associated with these products and their use. The Company provides a line of products for transporting data, voice, and video within buildings, across campuses, and around the world. Its products are designed to transform how people connect, communicate, and collaborate. Its products are installed at enterprise businesses, public institutions, telecommunications companies, commercial businesses, and personal residences. The Company has five segments: United States and Canada, European Markets, Emerging Markets, Asia Pacific, and Japan. The Emerging Markets theater consists of Eastern Europe, Latin America, the Middle East and Africa, and Russia and the Commonwealth of Independent States. In July 30, 2012, it acquired NDS Group Ltd. In October 2012, it acquired virtual networking company, vCider. In August 2011, the Company acquired Versly. In November 2011, it acquired BNI Video. In March 2012, the Company acquired Lightwire, Inc. In May 2012, the Company acquired ClearAccess. In December 2012, the Company acquired Cloupia. In December 2012, the Company acquired Cariden Technologies Inc. In December 2012, the Company acquired Meraki, Inc.

The Company�� product offerings fall into three categories: its core technologies, routing and switching; advanced technologies, and other products. In addition to its product offerings, the Company provides a range of service offerings, technical support services and advanced services. The advanced services program supports networking devices, applications, solutions, and complete infrastructures.

Routing

The Company offers a range of routers, from core network infrastructure for service providers and enterprises to access route rs for branch offices and for telecommuters and consumers a! t! home. Key products within its routing category are the Cisco ASR 901/903, Cisco 1000, 5000, and 9000 Cisco Aggregation Services Routers (ASR), as well as the Cisco ASR 800, 1900, 2900 and 3900 Cisco Integrated Services Routers (ISR):; Cisco CRS-1, 7600 and Cisco CRS-3 Cisco Carrier Routing Systems (CRS). During the fiscal year ended July 31, 2010 (fiscal 2010), Cisco introduced the Cisco CRS-3 Carrier Routing System (CRS-3) and Cisco 7600 Series Routers.

Service Provider Video

The Company�� end-to-end, digital video distribution systems and digital interactive set-top boxes enable service providers and content originators to deliver entertainment, information, and communication services to consumers and businesses around the world. Key product areas within its Service Provider Video category are: Set-Top Boxes, IP set-top boxes (both High-Definition (HD) and Standard Definition (SD)); Digital cable set-top boxes (both HD and SD); Cable Modem CP E (Data, EMTA, and Gateways); Videoscape Software Products and Headend Equipment (Encoders, Decoders, and Transcoders).

Switching

The Company�� switching products offer many forms of connectivity to end users, workstations, IP phones, access points, and servers, and also function as aggregators on local-area networks (LANs), metropolitan-area networks (MANs), and wide-area networks (WANs). Its switching systems employ several widely used technologies, including Ethernet, Power over Ethernet, Fibre Channel over Ethernet, Packet over Synchronous Optical Network, and Multiprotocol Label Switching. Many of its switches are designed to support an integrated set of advanced services, allowing organizations to be more efficient by using one switch for multiple networking functions rather than multiple switches to accomplish the same functions.

Cisco offers a family of Ethernet switching solutions from fixed-configuration switches for small and medium-sized businesses to modular switches for ente! rpr! ises! and ! service providers. Its fixed-configuration switches are designed to provide a foundation for converged data, voice, and video services. Key products within its switching category are the Cisco Catalyst 2960, 3560, 3750, 4500 and 6500 Series; the Cisco Nexus 2000, 3000, 5000 and 7000 Series switches; and MDS Series: MDS 9000.

Fixed-configuration switches are designed to cover a range of deployments in small and medium-sized businesses. It fixed-configuration switches are designed to provide a foundation for converged data, voice, and video services. They range from small, standalone switches to stackable models that function as a single, scalable switching unit. Modular switches are typically utilized by enterprise and service provider customers. Fixed-configuration and modular switches also include products such as optics modules which are shared across multiple product platforms.

NGN Routing

Routing technology is fundamental to the Internet, and this technology interconnects public and private IP networks for mobile, data, voice, and video applications. The Company's NGN Routing products are designed to enhance the intelligence, security, reliability, scalability, and level of performance in the transmission of information and media-rich applications. It offers a broad range of routers, from core network infrastructure and mobile Internet network for service providers and enterprises to access routers for branch offices and for telecommuters and consumers at home. Key product areas within its NGN Routing category are, Cisco Aggregation Services Routers: Cisco ASR 901/903, Cisco ASR 1000, Cisco ASR 5000 and Cisco ASR 9000. Cisco Integrated Services Routers: Cisco ISR 800, Cisco ISR 1900, Cisco ISR 2900 and Cisco ISR 3900. Cisco Carrier Routing Systems: Cisco CRS-1, Cisco CRS-3 and Cisco 7600 Series Routers.

Security

Cisco security solutions deliver identity, network and content security solutions designed to enable customers to r! educe t! ! he impact! of threats and realize the benefits of a mobile, collaborative, and cloud-enabled business. The products in this category span firewall, intrusion prevention, remote access, virtual private networks (VPNs), unified clients, network admission control, Web gateways, and email gateways. Its AnyConnect Secure Mobility Client solution enables users to access networks with their mobile device of choice, including laptops and smartphone-based mobile devices, while allowing organizations to manage the security risks of networks. Its cloud-based Web security service is designed to provide real-time threat protection and to prevent malware from reaching corporate networks, including roaming or mobile users. It focuses on a proactive, layered approach to counter both existing and emerging security threats. During the fiscal year ended July 28, 2012, it introduced the Cisco ASA 5500-X Series Midrange Security Appliance, Cisco Security Manager 4.3, the IPS 4500 Series, and Prime Securit y Manager.

Wireless

The Cisco Unified Wireless Network aims to harness the network to solve business problems, uniting high-performance wireless access across campus, branch, remote and outdoor environments. Its offerings include wireless access points (including the Cisco Aironet product family), controllers, antennas, and integrated management. The Company�� offerings provide users with simplified management and mobile device troubleshooting features which are designed to reduce operational cost and maximize flexibility and reliability. It is also investing in custom chipsets to deliver functions such as CleanAir proactive spectrum intelligence, ClientLink acceleration for mobile devices and VideoStream multicast optimization technology.

Data Center

The Company�� data center product category has been its major product category for the past two fiscal years. Cisco Unified Computing System (UCS) and Server Access Vi rtualization form the core of the Data Center pr! oduct cat! ego! ry. Key p! roduct areas within its Data Center product category are: Cisco UCS B-Series Blade Servers, Cisco UCS C-Series Rack Servers and Cisco UCS Fabric Interconnects.

Other Products

The Company�� other products category primarily consists of Linksys home networking products, certain emerging technologies, and other networking products. In addition to its product offerings, it provide a range of service offerings, including technical support services and advanced services.

The Company competes with Alcatel-Lucent; ARRIS Group, Inc.; Aruba Networks, Inc.; Avaya Inc.; Belden Inc.; Brocade Communications Systems, Inc.; Check Point Software Technologies Ltd.; Citrix Systems, Inc.; D-Link Corporation; LM Ericsson Telephone Company; Extreme Networks, Inc.; F5 Networks, Inc.; Force10 Networks, Inc.; Fortinet, Inc.; Hewlett-Packard Company; Huawei Technologies Co., Ltd.; International Business Machines Corporation; Juniper Networks, Inc.; LogMeIn, Inc.; Meru Networks, Inc.; Microsoft Corporation; Motorola, Inc.; NETGEAR, Inc.; Polycom, Inc.; Riverbed Technology, Inc.; and Symantec Corporation.

5 Best Communications Equipment Stocks To Buy Right Now: Nokia Oyj (NOK)

Nokia Corporation (Nokia) has three operating segments: Devices & Services; NAVTEQ, and Nokia Siemens Networks. Devices & Services is responsible for developing and managing the Company�� portfolio of mobile products, as well as designing and developing services, including applications and content. NAVTEQ is a provider of digital map information and related location-based content and services for mobile navigation devices, automotive navigation systems, Internet-based mapping applications, and government and business solutions. Nokia Siemens Networks provides mobile and fixed network infrastructure, communications and networks service platforms, as well as professional services and business solutions, to operators and service providers. In April 2010, the Company completed the acquisition of Novarra, Inc. and MetaCarta Inc. In September 2010, Nokia acquired Motally, Inc. In December 2010, Renesas Electronics Corporation acquired Nokia�� Wireless Modem business. In August 2012, the Company sold a portfolio consisting of over 500 patents and patent applications worldwide to Vringo Inc.

Mobile Phones

Nokia produces a range of mobile phones based on the Series 30 and Series 40 operating systems. These products have voice capability, basic messaging and calendar features, and, increasingly, color displays, radios, basic cameras and Bluetooth functionality. Series 30-based mobile phones do not provide Internet connectivity, access to Ovi or offer opportunities for application development by third parties. During 2010, its portfolio of Series 30-based mobile phones included the Nokia 1616, equipped with a long-lasting anti-dust keypad, frequency modulation (FM) radio, a flashlight, and a display that makes viewing information on the small screen easier. Its Series 40 operating system powers the mobile phone models and supports more functionalities and applications, such as Internet connectivity and access to its services.

Series 40 is open to third-party developers! to build Java and Adobe Flash Lite applications and content, which they can make available through the Ovi Store. It combines a touchscreen and a traditional phone keypad, is equipped with a five megapixel camera, quad-band for voice calling and third generation (3G), high speed packet access (HSPA) and wireless fidelity (WiFi) connectivity for data in a bushed aluminum finish. Other additions to the Company�� portfolio included the Nokia C3 Touch & Type, a stainless steel device, which also combines the touch screen and traditional phone keypad, and the Nokia 2690, memory card slot, and which gives access to Ovi Mail and features an FM radio and video graphics array (VGA) camera. It is also incorporating some of the software features and related services popular in its smartphones into the Series 40-based mobile phones. These include the new Ovi Web browser, which is based on the browser technology. It also offers Ovi Mail, a free e-mail service designed for users in emerging markets with Internet-enabled devices.

Smartphones

Nokia�� smartphones are based on the Symbian operating system, which supports an array of functionalities and provides opportunities for the development of applications and content by third parties. During 2010, Nokia also offered a product built on the Linux-based Maemo operating system. The Company makes smartphones for a range of consumer groups, offering Internet access, entertainment, location-based and other services, applications and content. With smartphones, its product categories include music players, cameras, pocketable computers, gaming consoles and navigation devices.

During 2010, the Company introduced a family of smartphones based on a new generation of the Symbian operating system. These were the Nokia N8, a smartphone crafted from anodized aluminum and available in a range of colors, and which offers imaging, video and entertainment capabilities; the Nokia C7, a sleek, full-touch smartphone crafted from stainless stee! l and gla! ss that is designed to appeal to social networkers; the Nokia C6-01, a smaller, full-touch smartphone that features Nokia ClearBlack display technology for outdoor visibility; and the Nokia E7, a business smartphone equipped with a full keyboard and 4-inch touchscreen display also featuring Nokia ClearBlack technology.

During 2010, the Company introduced a number of models based on the Symbian operating system, including the Nokia C6-00, a messaging-optimized smartphone with a 3.2-inch high definition (HD) touchscreen display, a slide out four-row QWERTY keyboard and a five megapixel camera; and the Nokia E5, a messaging-optimized QWERTY smartphone that builds on the Nokia E71 and Nokia E72. The Company also manufactures and sells luxury mobile devices under the Vertu brand. Vertu has more than 600 points of sale globally, including more than 90 Vertu boutiques, in almost 70 countries worldwide.

NAVTEQ

NAVTEQ Corporation (NAVTEQ) offers context and geographical services through Ovi Maps to a range of location-based services, such as pedestrian navigation, traffic and public transport information, local services and city guides, integration with social networks and contextual advertising. In January 2010, Nokia introduced a new version of Ovi Maps for its smartphones, which includes navigation to the user, and it is using NAVTEQ�� digital map information and related location-based content in this offering. This new version of Ovi Maps includes car and pedestrian navigation features, such as turn-by-turn voice guidance. During 2010, the Company�� NAVTEQ launched its new advanced mapping collection technology, NAVTEQ True. During 2010, its NAVTEQ launched Natural Guidance, a product to enable guidance in a human manner through the use of descriptive reference cues.

NAVTEQ�� map database enables the Company�� customers to offer navigation, route planning, location-based services and other geographic information-based products and services to con! sumer and! commercial users. NAVTEQ provides its database to mobile device and handset manufacturers, automobile manufacturers and dealers, navigation systems manufacturers, software developers, Internet portals, parcel and overnight delivery services companies and governmental and quasi- governmental entities, among others. The products and services incorporating NAVTEQ map data include Advanced Driver Assistance Systems, Dynamic navigation, Route planning, Location-based services and Geographic information systems. Advanced Driver Assistance Systems are in-vehicle applications that require geographic data, such as curve, slope, speed limits and highly detailed geometry. Dynamic navigation is real-time, detailed turn-by-turn route guidance, which can be provided to end-users through vehicle navigation systems, as well as through Global Positioning System (GPS)-enabled handheld navigation devices, and other mobile devices.

Route planning consists of driving directions, route optimization and map display through services provided by Internet portals and through computer software for personal and commercial use. Location-based services include location-specific information services, providing information about people and places that is tailored to the proximity of the specific user. The applications using NAVTEQ�� map database include points of interest locators, mobile directory assistance services, emergency response systems and vehicle-based telematics services. Geographic information systems render geographic representations of information and assets for management analysis and decision making. In addition, NAVTEQ has a traffic and logistics data collection network in which it processes traffic incident and event information, along with traffic flow data collected through its network of roadside sensors and from GPS data records from Nokia devices and other NAVTEQ customers, in order to provide detailed traffic information to radio and television stations, in-vehicle and mobile navigation systems! , Interne! t sites and mobile device users.

NAVTEQ�� map database is a representation of road transportation networks in Europe, North America, Australia, Asia and other regions around the world. This database offers geographic coverage, including data at various levels of detail for 84 countries on six continents, covering more than 19 million miles of roadway worldwide. The most detailed coverage includes road, route and related travel information, including attributes collected by road segment that are essential for routing and navigation, such as road classifications, details regarding ramps, road barriers, sign information, street names and addresses and traffic rules and regulations. In addition, the database includes over 50 million points of interest, such as airports, hotels, restaurants, retailers, civic offices and cultural sites.

Nokia Siemens Networks

Nokia Siemens Networks has three business units: network systems; global services; and business solutions. Nokia Siemens Networks is jointly owned by Nokia and Siemens. Nokia Siemens Networks is a provider of telecommunications infrastructure hardware, software and professional services globally. Nokia Siemens Networks��customers include network operators, such as Bharti Airtel, Deutsche Telecom, France Telecom, Telefonica O2 and Vodafone, as well as service providers, such as Unitech and XO Communications. Nokia Siemens Networks has a products and services portfolio designed to address the needs of communication service providers. Nokia Siemens Networks provides its products and services to more than 600 communication service providers in over 150 countries and has systems serving in excess of 1.5 billion subscribers.

Network systems offers communication service providers both fixed and mobile network infrastructure, including Nokia Siemens Networks��Flexi Multiradio base stations, a software defined radio supporting global system for mobile (GSM), 3G and LTE radio technologies, packet product! s, optica! l transport systems and broadband access equipment. For wireless networks, Network Systems develops and manufactures GSM/EDGE and WCDMA/HSPA radio access networks for network operators. It also develops products, such as I-HSPA and new technologies, such as LTE to support the uptake of mobile data services. For fixed line networks, Network Systems focuses on transport networks. Network Systems provides the fundamental elements for high-speed transmission through optical and microwave networks, including packet-oriented technologies, such as Carrier Ethernet and traditional protocols, such as time-division multiplexing (TDM).

Global services business unit offers network operators a range of professional services, including network planning and optimization, the management of network operations and the care and maintenance of software and hardware, and a range of network implementation and turnkey solutions. As of December 31, 2010, 180 million global subscribers were managed througt Nokia Siemens Networks��global delivery hubs. Global services consists of three businesses, which include managed services, which offers network planning and optimization and the management of network operations, with the market share position in India, Latin America and the Middle East and Africa; care, which offers software and hardware maintenance, proactive and multi-vendor care and competence development services, dealing with one million global hardware service transactions, and network implementation, which offers project management and turnkey implementations and energy efficient sites, remotely activating a site every two minutes, 365 days per year.

Business solutions offers products to communication service providers for business and operations support systems and customer experience management, such as charging and billing software, service management software and subscriber database management, and products that enable enhancement and delivery of services across multiple networks and d! evices an! d convergent service control and network security, together with services related to consulting, product implementation, support and care, systems integration and managed services. Business solutions offer products for five areas, as well as services relating to consulting, product implementation, support and care, systems integration and managed services includes business support systems; operations support systems; customer experience management; service enablement and delivery, and converged service control.

The Company competes with Google, HTC, LG, Motorola, Samsung, Sony Ericsson, Apple, Tele Atlas, CISCO, NEC and Motorola.

Top 10 Undervalued Stocks To Own For 2014: Research in Motion Ltd (BBRY.O)

Research In Motion Limited, incorporated on March 7, 1984, is a designer, manufacturer and marketer of wireless solutions for the worldwide mobile communications market. Through the development of integrated hardware, software and services, it provides platforms and solutions for seamless access to information, including e-mail, voice, instant messaging, short message service (SMS), Internet and intranet-based applications and browsing. The Company's technology also enables an array of third party developers and manufacturers to enhance their products and services through software development kits, wireless connectivity to data and third-party support programs.Its portfolio of products, services and embedded technologies are used by thousands of organizations and millions of consumers around the world and include the BlackBerry wireless solution, the RIM Wireless Handheld product line, the BlackBerry PlayBook tablet, software development tools and other software and har dware.

On March 25, 2011, the Company purchased 100% of the shares of a company whose technology is being incorporated into the Company�� developer tools. On April 26, 2011, the Company purchased certain assets of a company whose acquired technologies will be incorporated into the Company�� products. In June 2011, the Company acquired Scoreloop. On March 8, 2012, the Company acquired Paratek Microwave Inc. During the fiscal year ended March 3, 2012 (fiscal 2012), the Company purchased 100% interests of a company, whose technology will be incorporated into its technology; whose technology offers cloud-based services for storing, sharing, accessing and organizing digital content on mobile devices; whose technology is being incorporated into an application on the BlackBerry PlayBook tablet; whose technology offers a customizable and cross-platform social mobile gaming developer tool kit, and whose technology will provide a multi-platform BlackBerry Enterprise Solution for managing and securing mobile devices for enter! p! rises and government organizations.

On April 24, 2012, the Company launched BlackBerry 7 smartphone, the BlackBerry Curve 9220, for customers in Indonesia. April 18, 2012, it launched BlackBerry 7 smartphone, the BlackBerry Curve 9220, for customers in India. On April 17, 2012, it announced availability of the BlackBerry Bold 9790 smartphone in Spain. On April 3, 2012, it launched BlackBerry Mobile Fusion, and launched four BlackBerry smartphones powered by the BlackBerry 7 operating system (OS) in Cambodia, which included BlackBerry Bold 9900, BlackBerry Bold 9790, BlackBerry Curve 9360 and BlackBerry Curve 9380. On April 2, 2012, it announced the availability of BlackBerry App World, the official application store for BlackBerry smartphones in Brunei, and it announced availability of the BlackBerry Bold 9790 and BlackBerry Curve 9380 smartphones for Cell C customers in South Africa. On March 27, 2012, it launched of the BlackBerry solution in Benin Republic. On March 15, 2012, it launched of BlackBerry services in China. On March 7, 2012, it launched the BlackBerry service in Angola.

The Company's primary revenue stream is generated by the BlackBerry wireless solution, consists of smartphones and tablets, service and software. BlackBerry service is provided through a combination of its global BlackBerry Infrastructure and the wireless networks of its carrier partners. On February 21, 2012, it released the BlackBerry PlayBook OS 2.0 software. It generates hardware revenues from sales, primarily to carriers and distributors. During fiscal 2012, the Company launched the wireless fidelity (WiFi)-enabled BlackBerry PlayBook tablet in 44 markets around the world. On July 21, 2011, the BlackBerry PlayBook tablet received Federal Information Processing Standard 140-2 certification.

BlackBerry Smartphones and Tablets

BlackBerry smartphones uses wireless, push-based technology that delivers data to m obile users��business and consumer applications. Black! Berr! y s! martph! ones integrate messaging including instant messaging, email and SMS; voice calling; Webkit browser; multimedia capabilities; calendar, and other applications. During fiscal 2012, it introduced 10 new smartphones and launched software updates to both its smartphone and tablet platforms. BlackBerry smartphones are available from hundreds of carriers and indirect channels, through a range of distribution partners, and are designed to operate on a variety of carrier networks, including HSPA/HSPA+/UMTS, GSM/GPRS/EDGE, CDMA/Ev-DO, and iDEN.

During fiscal 2012, its BlackBerry smartphone and tablet portfolio included BlackBerry Bold series, BlackBerry Torch series, BlackBerry Curve series and The BlackBerry PlayBook tablet. Its BlackBerry Bold series includes BlackBerry Bold 9900 and 9930 and BlackBerry Bold 9790. The Company�� BlackBerry Torch series include BlackBerry Torch 9810 and All-Touch BlackBerry Torch 9850 and 9860. The Company's BlackBerry Curve series inc lude BlackBerry Curve 9350/9360/9370 and All-Touch BlackBerry Curve 9380 Smartphone. The BlackBerry PlayBook tablet features the BlackBerry PlayBook OS 2.0. The BlackBerry PlayBook offers a seven-inch high definition display, a dual core one gigahertz processor, dual high definition cameras, multitasking and a Web browsing.

BlackBerry Enterprise Solution

BlackBerry Enterprise Server is software that acts as the centralized link between BlackBerry smartphones, enterprise systems, business applications and wireless networks. BlackBerry Enterprise Server integrates with enterprise messaging systems including Microsoft Exchange, IBM Lotus Domino and Novell GroupWise to synchronize with BlackBerry smartphones to provide mobile users with wireless access to e-mail, calendar, contacts, notes and tasks. It also provides access to business applications and enterprise systems. In addition, it provides security features and offers administrative tools. BlackBe rry Enterprise Server is required for certain othe! r enterpr! i! se soluti! ons, such as BlackBerry Mobile Voice System (for bringing desk phone functionality to BlackBerry smartphones); BlackBerry Clients for Microsoft Office Communications Server, IBM Lotus Sametime and Novell GroupWise Messenger (for enterprise instant messaging); IBM Lotus Connections (for enterprise social networking); IBM Lotus Quickr (for document sharing and collaboration); and Chalk Pushcast Software (for corporate podcasting).

The Company�� BlackBerry Mobile Fusion provides a Web-based interface that allows enterprises to provision, audit, and protect mobile devices including BlackBerry smartphones, BlackBerry PlayBook tablets, and devices that use iOS and Android. BlackBerry Balance helps enterprises support the Bring Your Own Device (BYOD) trend. BlackBerry Enterprise Server Express is free server software that synchronizes BlackBerry smartphones with Microsoft Exchange or Microsoft Windows Small Business Server. BlackBerry Enterprise Server Express works with Microsoft Exchange 2010, 2007 and 2003 and Microsoft Windows Small Business Server 2008 and 2003 to provide users with wireless access to e-mail, calendar, contacts, notes and tasks, as well as other business applications and enterprise systems behind the firewall.

BlackBerry Mobile Voice System (BlackBerry MVS) allows organizations to converge office desk phones and BlackBerry smartphones. BlackBerry MVS is consists of three components: BlackBerry MVS Client, BlackBerry MVS Services, and BlackBerry MVS Server. It unifies fixed and mobile voice communications. Hosted BlackBerry services bring the BlackBerry Enterprise Server features, functionality, and security capabilities in a package that is managed for end users. Hosted BlackBerry services are conveniently handled and supported by a BlackBerry certified partner from the BlackBerry Alliance Program, giving small and medium -sized enterprise (SME) enterprises the support and convenience they need.

Service

The Company gen! erates se! rvice ! revenues ! from billings to RIM's BlackBerry subscriber account base. It generates service revenues primarily from a monthly infrastructure access fee charged to a carrier or reseller, which the carrier or reseller in turn bills the BlackBerry subscriber.

BlackBerry Technical Support Services

BlackBerry Technical Support Services are a suite of annual technical support and software maintenance programs. The programs are designed to meet the customer�� BlackBerry support needs by offering a contact for BlackBerry wireless solution technical support directly from the Company.

Non-Warranty Repairs

The Company generates revenue from its repair and maintenance program for BlackBerry smartphones that are returned to it by the carrier, the reseller, or the customer. It generates revenue for repair after the expiration of the contractual warranty period.

The Company competes with Apple Inc., Microsoft Inc., Nokia Corporation, Dell, Inc., Fujitsu Limited, General Dynamics Corporation, Hitachi America, Ltd., HTC Corporation, Huawei Technologies Co. Ltd., LG Electronics Mobile Communications Company, Mitsubishi Corporation, Motorola Mobility Holdings, Inc., NEC Corporation, Samsung Electronics Co., Ltd., Sharp Corporation, Sony Corporation, ZTE Corporation, IBM Corporation, Microsoft Corporation, Notify Technology Corporation, Openwave Systems Inc., Seven Networks, Inc., Sybase, Inc. and Good Technologies.

5 Best Communications Equipment Stocks To Buy Right Now: Alcatel Lucent SA (ALU)

Alcatel Lucent, incorporated on June 18, 1898, is engaged in mobile, fixed, Internet Protocol (IP) and Optics technologies, applications and services. The Company is a partner of service providers, enterprises, industries and governments worldwide. Alcatel-Lucent includes Bell Labs centres of research in communications technology. Its operations are in more than 130 countries. The Company operates in three business segments: networks, applications, and services. On December 31, 2010, the Company completed the sale of its Vacuum pump solutions and instruments business to Pfeiffer Vacuum Technology AG. In September 2010, the Company acquired OpenPlug, a mobile software and applications development tools vendor. In June 29, 2010, the Company acquired ProgrammableWeb.

During 2010, the Company launched the Digital Media Store, a multicontent digital storefront that allows service providers to deliver content to end-users. Launched during 2010, Optism is a permission-based mobile marketing solution. During 2010, it launched Alcatel-Lucent�� Mobile Wallet Service (MWS), which allows the mobile operator to leverage its secure network to deliver a mobile payment capability through a mobile handset. During 2010, it also launched Alcatel-Lucent�� Application Exposure Suite to facilitate the development of new services by third-party application developers and content providers.

Networks Segment

The Networks segment supplies a portfolio of products and offerings used by fixed, wireless and converged service providers, as well as enterprises and governments for their business communications. The Company�� IP portfolio consists of four product families that deliver multiple services, including broadband triple play for residential customers; Ethernet and IP Virtual Private Network (VPN) services for Enterprise customers, and wireless second-generation (2G), third-generation (3G) and long term evolution (LTE) broadband services for mobile operators. The main product fami! lies include Internet Protocol/Multiprotocol Label Switching (IP/MPLS) service routers, Carrier Ethernet service switche, Multi-service wide-area-network (or MS WAN) switches and Content Delivery Network (CDN) appliances.

Internet Protocol/Multiprotocol Label Switching (IP/MPLS) service routers direct traffic within and between carriers��national and international networks to enable delivery of a range of IP-based services (including Internet access, Internet Protocol TV (IPTV), Voice over IP (VoIP), mobile phone and data, and managed Enterprise VPN services) on a single common network infrastructure with superior performance, with application intelligence, and with scalability (such as the simultaneous support of many diverse types of traffic and customers); Carrier Ethernet service switches. Carrier Ethernet service switches enable carriers to deliver residential, business and wireless services, and these products are mainly used in metropolitan area networks; Multi-service wide-area-network (MS WAN) switches. Multi-service wide-area-network (MS WAN) switches enable fixed line and wireless carriers to transition their existing networks to support newer technologies and services, and Content Delivery Network (CDN) appliances. Content Delivery Network (CDN) appliances distribute and cache (store) Web and video content.

The Company�� Internet Protocol/Multiprotocol Label Switching (IP/MPLS) and Carrier Ethernet products are designed to facilitate the development and availability of applications for the more participatory and interactive Web 2.0 business and consumer services. Its service routers are particularly well suited to deliver complex services to business, residential and mobile end-users. Its IP/MPLS service routers and Carrier Ethernet service switches are often used in conjunction with its DSL and Gigabit Passive Optical Network (GPON) access products to deliver these newer triple-play services, or with its wireless access products to deliver LTE solutions, or w! ith its D! ense Wave Division Multiplexing (DWDM) and optical switching products to deliver converged backbone transformation solutions for optimizing IP transport. Its Optics division designs and markets equipment for the long distance transportation of data over fiber optic connections via land (terrestrial) and under sea (submarine), as well as for short distances in metropolitan and regional areas.

The Company�� transport portfolio also includes the microwave wireless transmission equipment. Its terrestrial optical products offer a portfolio designed to seamlessly support service growth from the metro to the network core. With its products, carriers manage voice, data and video traffic patterns based on different applications or platforms and can introduce a range of managed data services, including multiple service quality capabilities, variable service rates and traffic congestion management. These products allow carriers to leverage their existing network infrastructure to offer these new services. Its submarine cable networks can connect continents (using optical amplification required over long distances), a mainland and an island, several islands together, or many points along a coast. It offers a portfolio of point-to-point microwave radio products meeting both European telecommunications standards (ETSI) and American standards-based (ANSI) requirements.

The Company�� Wireless All Around message developed during 2010 is a combination of wireless and IP products. The version of CDMA technology, known as 1X EV-DO Revision A, enables operators to offer two-way, real-time, high-speed data applications, such as VoIP, mobile video, push-to-talk and push-to-multimedia. The introduction of High Speed Packet Access (HSPA) and HSPA+ (the latest evolutions of W-CDMA technology) on networks and devices has led to increases in data speeds available to broadband devices. The Company develops mobile radio products for the second generation (2G) Global System for Mobile communications (GS! M) standa! rd, including General Packet Radio Service / Enhanced Data Rates for GSM Evolution (GPRS/EDGE) technology upgrades to that standard.

LTE offers service providers a compelling evolution path from all existing networks (GSM, W-CDMA, CDMA or WiMAX) by simplifying the radio access network and converging on a common IP base. RFS designs and sells cable, antenna, tower systems and their related electronic components, providing an end-to-end suite of radio frequency products. RFS serves original equipment manufacturers (OEMs), distributors, system integrators, network operators and installers in the broadcast, wireless communications, microwave and defense sectors. Specific applications for RFS products include cellular sites, in-tunnel and in-building radio coverage, microwave links, television and radio. The Company offers products that extend from legacy switching systems to IP multimedia subsystem (IMS) solutions for fixed, mobile, and converged operators. It has deployed its next-generation network (NGN) products in more than 170 fixed NGN networks, and it has provided the core network for more than 66 full IMS fixed and mobile networks. Its fixed access solutions allow carriers to offer triple-play services over a single access line. Its carrier customers are offering both residential and business customers multiple services, such as a number of broadcast channels, video on demand, high definition television (HDTV), VoIP, high speed Internet, and business access services.

Applications Segment

The Applications segment develops software-based applications and solutions that contribute to the personal communications for users. The Applications group is divided into two businesses: Enterprise Applications and Network Applications. The Enterprise Applications business includes its IP-based communications and collaboration applications for enterprises, including the Genesys contact center business. The Network Applications business develops applications used by service pr! oviders t! o deliver a range of services to their customers, and also includes Motive, which provides software for service providers to remotely manage their customers��at-home networks, networked devices and broadband and mobile data services. During the year ended December 31, 2010, its Applications segment accounted 12% of its total revenue.

The Applications segment is investing resources in next generation collaboration and communications systems offered by its Enterprise Applications division; customer contact, customer engagement and service management areas addressed by its Genesys and Motive businesses; carrier applications, such as communication and messaging, next-generation telephony, digital media and multi-screen delivery of content and personalized advertising, device agnostic location based address book services, and technologies, such as Long Term Evolution (LTE), IP multimedia subsystem (IMS), and Application Enablement.

Services Segment

The Services segment is focused in helping the service provider and customers realize the potential of media, information technology (IT) and telecommunications services and technologies. These services address the lifecycle of its customers��networks and operations, and encompass business consulting, systems design and integration, maintenance and managed services. The service offerings are organized around four areas: network and system integration, managed and outsourcing solutions, multi-vendor maintenance, and product-attached services.

The Company competes with Avaya, Cisco Systems, Ericsson, Fujitsu, Huawei, ZTE and Nokia Siemens Networks.

5 Best Communications Equipment Stocks To Buy Right Now: Cisco Systems Inc (CSCO)

Cisco Systems, Inc., incorporated on December 10, 1984, designs, manufactures, and sells Internet protocol (IP)-based networking and other products related to the communications and information technology (IT) industry and provide services associated with these products and their use. The Company provides a line of products for transporting data, voice, and video within buildings, across campuses, and around the world. Its products are designed to transform how people connect, communicate, and collaborate. Its products are installed at enterprise businesses, public institutions, telecommunications companies, commercial businesses, and personal residences. The Company has five segments: United States and Canada, European Markets, Emerging Markets, Asia Pacific, and Japan. The Emerging Markets theater consists of Eastern Europe, Latin America, the Middle East and Africa, and Russia and the Commonwealth of Independent States. In July 30, 2012, it acquired NDS Group Ltd. In October 2012, it acquired virtual networking company, vCider. In August 2011, the Company acquired Versly. In November 2011, it acquired BNI Video. In March 2012, the Company acquired Lightwire, Inc. In May 2012, the Company acquired ClearAccess. In December 2012, the Company acquired Cloupia. In December 2012, the Company acquired Cariden Technologies Inc. In December 2012, the Company acquired Meraki, Inc.

The Company�� product offerings fall into three categories: its core technologies, routing and switching; advanced technologies, and other products. In addition to its product offerings, the Company provides a range of service offerings, technical support services and advanced services. The advanced services program supports networking devices, applications, solutions, and complete infrastructures.

Routing

The Company offers a range of routers, from core network infrastructure for service providers and enterprises to access routers for branch offices and for telecommuters and consumers at ho! me. Key products within its routing category are the Cisco ASR 901/903, Cisco 1000, 5000, and 9000 Cisco Aggregation Services Routers (ASR), as well as the Cisco ASR 800, 1900, 2900 and 3900 Cisco Integrated Services Routers (ISR):; Cisco CRS-1, 7600 and Cisco CRS-3 Cisco Carrier Routing Systems (CRS). During the fiscal year ended July 31, 2010 (fiscal 2010), Cisco introduced the Cisco CRS-3 Carrier Routing System (CRS-3) and Cisco 7600 Series Routers.

Service Provider Video

The Company�� end-to-end, digital video distribution systems and digital interactive set-top boxes enable service providers and content originators to deliver entertainment, information, and communication services to consumers and businesses around the world. Key product areas within its Service Provider Video category are: Set-Top Boxes, IP set-top boxes (both High-Definition (HD) and Standard Definition (SD)); Digital cable set-top boxes (both HD and SD); Cable Modem CPE (Data, EMTA, and Gateways); Videoscape Software Products and Headend Equipment (Encoders, Decoders, and Transcoders).

Switching

The Company�� switching products offer many forms of connectivity to end users, workstations, IP phones, access points, and servers, and also function as aggregators on local-area networks (LANs), metropolitan-area networks (MANs), and wide-area networks (WANs). Its switching systems employ several widely used technologies, including Ethernet, Power over Ethernet, Fibre Channel over Ethernet, Packet over Synchronous Optical Network, and Multiprotocol Label Switching. Many of its switches are designed to support an integrated set of advanced services, allowing organizations to be more efficient by using one switch for multiple networking functions rather than multiple switches to accomplish the same functions.

Cisco offers a family of Ethernet switching solutions from fixed-configuration switches for small and medium-sized businesses to modular switches for enterprise! s and ser! vice providers. Its fixed-configuration switches are designed to provide a foundation for converged data, voice, and video services. Key products within its switching category are the Cisco Catalyst 2960, 3560, 3750, 4500 and 6500 Series; the Cisco Nexus 2000, 3000, 5000 and 7000 Series switches; and MDS Series: MDS 9000.

Fixed-configuration switches are designed to cover a range of deployments in small and medium-sized businesses. It fixed-configuration switches are designed to provide a foundation for converged data, voice, and video services. They range from small, standalone switches to stackable models that function as a single, scalable switching unit. Modular switches are typically utilized by enterprise and service provider customers. Fixed-configuration and modular switches also include products such as optics modules which are shared across multiple product platforms.

NGN Routing

Routing technology is fundamental to the Internet, and this technology interconnects public and private IP networks for mobile, data, voice, and video applications. The Company's NGN Routing products are designed to enhance the intelligence, security, reliability, scalability, and level of performance in the transmission of information and media-rich applications. It offers a broad range of routers, from core network infrastructure and mobile Internet network for service providers and enterprises to access routers for branch offices and for telecommuters and consumers at home. Key product areas within its NGN Routing category are, Cisco Aggregation Services Routers: Cisco ASR 901/903, Cisco ASR 1000, Cisco ASR 5000 and Cisco ASR 9000. Cisco Integrated Services Routers: Cisco ISR 800, Cisco ISR 1900, Cisco ISR 2900 and Cisco ISR 3900. Cisco Carrier Routing Systems: Cisco CRS-1, Cisco CRS-3 and Cisco 7600 Series Routers.

Security

Cisco security solutions deliver identity, network and content security solutions designed to enable customers to reduce the ! impact of! threats and realize the benefits of a mobile, collaborative, and cloud-enabled business. The products in this category span firewall, intrusion prevention, remote access, virtual private networks (VPNs), unified clients, network admission control, Web gateways, and email gateways. Its AnyConnect Secure Mobility Client solution enables users to access networks with their mobile device of choice, including laptops and smartphone-based mobile devices, while allowing organizations to manage the security risks of networks. Its cloud-based Web security service is designed to provide real-time threat protection and to prevent malware from reaching corporate networks, including roaming or mobile users. It focuses on a proactive, layered approach to counter both existing and emerging security threats. During the fiscal year ended July 28, 2012, it introduced the Cisco ASA 5500-X Series Midrange Security Appliance, Cisco Security Manager 4.3, the IPS 4500 Series, and Prime Security Manager.

Wireless

The Cisco Unified Wireless Network aims to harness the network to solve business problems, uniting high-performance wireless access across campus, branch, remote and outdoor environments. Its offerings include wireless access points (including the Cisco Aironet product family), controllers, antennas, and integrated management. The Company�� offerings provide users with simplified management and mobile device troubleshooting features which are designed to reduce operational cost and maximize flexibility and reliability. It is also investing in custom chipsets to deliver functions such as CleanAir proactive spectrum intelligence, ClientLink acceleration for mobile devices and VideoStream multicast optimization technology.

Data Center

The Company�� data center product category has been its major product category for the past two fiscal years. Cisco Unified Computing System (UCS) and Server Access Virtualization form the core of the Data Center product category.! Key prod! uct areas within its Data Center product category are: Cisco UCS B-Series Blade Servers, Cisco UCS C-Series Rack Servers and Cisco UCS Fabric Interconnects.

Other Products

The Company�� other products category primarily consists of Linksys home networking products, certain emerging technologies, and other networking products. In addition to its product offerings, it provide a range of service offerings, including technical support services and advanced services.

The Company competes with Alcatel-Lucent; ARRIS Group, Inc.; Aruba Networks, Inc.; Avaya Inc.; Belden Inc.; Brocade Communications Systems, Inc.; Check Point Software Technologies Ltd.; Citrix Systems, Inc.; D-Link Corporation; LM Ericsson Telephone Company; Extreme Networks, Inc.; F5 Networks, Inc.; Force10 Networks, Inc.; Fortinet, Inc.; Hewlett-Packard Company; Huawei Technologies Co., Ltd.; International Business Machines Corporation; Juniper Networks, Inc.; LogMeIn, Inc.; Meru Networks, Inc.; Microsoft Corporation; Motorola, Inc.; NETGEAR, Inc.; Polycom, Inc.; Riverbed Technology, Inc.; and Symantec Corporation.

Advisors' Opinion:

• [By Jim Jubak]

   Cloud computing is a trend you want to own a part of -- Cisco Systems (CSCO) projects that global cloud traffic will make up 64% of total data center traffic by 2016, up from 29% in 2011. But how to buy in? Many of the biggest cloud-computing "companies" are actually units of larger companies rather than standalone businesses. I don't think buying Amazon.com (AMZN) to get its data center and cloud-computing business makes a whole lot of sense.

• [By Jonas Elmerraji]

   As the standard bearer in the IP networking business, Cisco (CSCO) gets a lot of eyes on it. Despite a somewhat soft market for corporate spending, IT dollars have been flowing in the last several years as new trends like cloud computing up the infrastructure that firms need to offer customers. That's helped spur on the solid growth rates that Cisco's been booking in each of the last four years.

  A big installed base gives Cisco an inherent advantage in selling its big-ticket networking components. Because IT departments want minimal headaches when adding onto their infrastructure, going with a single vendor is typically the most painless approach -- and that's boosted customer stickiness for CSCO. That's not to say that there hasn't been increased competition lately; as enterprise IT spending continues to climb higher, more firms want to eat Cisco's lunch. To avoid that, the firm is going to have to keep innovating.

  One result of Cisco's dominant position in the IP networking business is a mountain of cash -- around $30 billion after all of its debt is accounted for. Cash comes with some concerns for big tech companies, namely the propensity to overpay for acquisition opportunities. And even though Cisco's latest targets haven't come cheap, they've been small enough to not dilute shareholder vale enough to matter. That said, Cisco's management needs to return more value to shareholders in the form of dividends or buybacks in this market -- holding $30 billion in cash in a low rate, [comparatively] high inflation environment isn't viable for long.

  The need to return cash to shareholders isn't exactly a secret, so when that value return happens, expect CSCO's share price to jump in kind…

• [By James K. Glassman]

   Cisco's shares have never recovered after sinking sharply after the tech bubble burst in 2000. But the company's balance sheet is rock solid, with cash far outweighing debts. And the stock is dirt-cheap, going for 9 times estimated earnings of $1.91 per share for the year that ends in July 2013. 
  
  The telecom-equipment giant began paying a dividend in 2011 and increased the quarterly payout by 2 cents, to 8 cents a share, in April. In mid August, Cisco announced another dividend increase, to 14 cents a share, starting with the October payment. Its stock, at $17.35, yields 3.2%. The company also bought back $4.4 billion worth of shares in the fiscal year that ended in July.