Best Japan Stocks For 2013, Best Japan Stocks To Buy For 2013: March 2014

Monday, March 31, 2014

Google CEO Page Paid $1

For all the work he did to help Google Inc. (NASDAQ: GOOG) become the third most valuable public company in the U.S. , CEO and founder Larry Page was paid $1 in 2013. Co-founder Sergey Brin was paid the same. Neither participates in Google’s cash bonus or equity award program. Their reasons are almost certainly the same as that of the late Steve Jobs, who was paid $1 a year as CEO of Apple Inc. (NASDAQ: AAPL) CEO during most of his tenure. Page and Brin each owns such a huge portion of company stock that a few million a year in compensation means nearly nothing.

By contrast to Page’s pay, Eric E. Schmidt, Executive Chairman of the Board and former CEO, was paid a fortune. His 2013 package was valued at $19,323,380 in Google’s proxy. However, this is a small fraction of the $100,980,262 he made in 2011. Of that $$55,643,040 was a stock award for his years of service as CEO, a job he held from 2001 to 2011. Google hired him because of his level of management experience that the much younger Brin and Page did not have.

Schmidt’s role at Google has not made him as rich as the two founders. In the latest version of the Forbes 400, Page is listed with a net worth of $24.9 billion, which places him 13th on the list. Brin sits in 14th place with a net worth of $24.4 billion. Schmidt is 49th with a net worth of $8.3 billion.

Google’s stock market success is nothing short of extraordinary. It market capitalization is $376 billion. Its share price has risen 40% in the last 12 months, much better than the 18.4% improvement in the S&P 500. That rate has also bested those of the two companies ahead of Google on the market cap list — Apple and Exxon Mobil Corp.(NYSE: XOM)

While Google has been criticized for being a single business company, this has not kept the company from extraordinary growth. During final quarter of 2013, revenue rose 17% to $16.86 billion. Net income rose from $3.38 billion, compared to $2.89 billion in the same period a year earlier. And most investors cheered Google’s decision to dump its Motorola smartphone hardware business, which had been eroding the company’s margins. On January 19, Google announced it would sell Motorola to Chinese PC giant Lenovo for $2.91 billion.

Finally, Google shareholders have to be pleased by the fact that Page has so much confidence in the company’s future that he is willing to rely on the stock price alone for his financial compensation.

Sunday, March 30, 2014

DISH's $9 Billion Coffer and the Company's Future

DISH Network (NASDAQ: DISH ) has lots and lots of cash -- more than $7 billion following this week's debt issuance. As opposed to other cash hoarders, there's no secret as to what the company wants to spend it on. DISH is knee-deep in the race for spectrum and wireless buildout to launch its much-anticipated 4G network. The question is, where will the company make its purchase? As Sprint (NYSE: S ) and Clearwire (NASDAQ: CLWR ) continue to cozy up, the satellite-television provider will likely have to look elsewhere for its spectrum bundle. Where will the billions go?

To buy, or be bought?
DISH Network, despite the occasional stumbles and mediocre subscriber gains, is a thriving business, with strong cash flows and sound management. Its biggest detractor is more than $11 billion in long-term debt.

The company does not need a buyer, but it may happen anyway. DIRECTV (NASDAQ: DTV ) has been killing it in Latin America, adding millions of subscribers in a relatively short period of time. Even in the U.S., where pay-tv penetration approaches total saturation, the company has increased its average revenue per user, and found ways to boost its North American cash flows. Meanwhile, DISH's numbers have suffered, similar to the numbers of cable companies.

This presents an interesting opportunity for both companies. DISH could use the Latin American subscriber growth, and DIRECTV could gain immediate exposure to the wireless network effort. It would be a pretty textbook case of a symbiotic merger -- more like an acquisition, since DTV is the bigger company.

In the company's last conference call, DISH CEO Charlie Ergen said he would have to consider the buyout possibility, because it just makes sense. While not the most enthusiastic language, he's absolutely right.

But, meanwhile, what is to be done with the billions the company just raised in a debt offering, not to mention the quarterly cash flows that continue to add hundreds of millions?

Spectrum!
DISH is starving for spectrum. At the end of last year, the company made an offer for Clearwire, but it never got too far, as Sprint, the original suitor, seems to have warmed up the former's board to the idea. There must be some potential elsewhere, though, as DISH just this week issued its latest debt of $1 billion, in addition to $4 billion in senior notes last year.

Besides increasing the company's $3.30 per share offer for Clearwire, which could induce a shareholder riot compared to Sprint's $2.97 offer, the company could back Deutsche Telekom's proposed takeover of MetroPCS. This would accomplish nearly the same thing, and a JV with the German telecom juggernaut could add a sense of security for investors and analysts.

The next few months will be very interesting for DISH shareholders, as it may show the future direction (and viability) of the company. If any of the above materialize, it would be a win for investors.

Saturday, March 29, 2014

Decreasing Margins Trouble Republic Services Inc.

Republic Services Inc. (RSG) is a waste management company which provides solid non-hazardous disposal services for commercial, industrial, municipal and residential applications. Owning and operating 196 transfer stations, 191 solid waste landfills and 70 recycling facilities, Republic Services is the second-largest company among this industry, in the U.S. The residential collection is done under contract with the municipalities, while commercial and industrial operations are performed through waste containers and compactors. Recycling services represents only the 6.7% of the company's revenue however, the increased concern towards environmental problems along with re-utilization and recycling is likely to expand the waste management firms' interest on this service.

The company's fourth quarter results were promising, with both revenues and earnings increasing year over year, and reaching numbers above the projected levels. Clearly positioned as a premium waste management company in the U.S., Republic Services is developing an acquisition strategy. Still, the competition among this industry is strong, and given the soft economic conditions, it is likely to pressure profitability margins.

Is the Merge Still Unreliable?

During 2008, Republic Services and Allied Waste merged to create a strong company which could compete with number-one waste management company Waste Management Inc. (WM). It is true this industry has a rather constant nature, as trash volume increases with population growth, urban construction, industrial production and commercial activity. Still, the macroeconomic context during 2008 affected the recently-merged company, having to deal with lower waste volumes and intense price competition. Nevertheless, after this bumpy beginning, the company reached a good profitability. And, although it came to sustain average growth on both gross and operating margins, this tendency has recently decelerated with this margins underperforming in 2012 and 2013.

Yet this industry has a rather high barrier to entry, as its costly structure and waste regulation rules imply high static costs for all waste disposal operations, and Republic Services in well positioned as the second largest company in this non-hazardous solid waste industry.

New Acquisitions, Improved Structure

Republic Services is a company vertically integrated, which operates controlling the flow of waste while protecting its profits. With an internalization strategy, Republic Services is trying to combine financial and legal resources with local market presence by focusing on a series of quality acquisition opportunities such as local operators, transfer stations, and recycling assets. Through this structural adjustment and new acquisitions, the company is likely to gain pricing power as well as a bargaining clout.

Besides, the company's regional landfill in Clark County, Nev., is the one of the most dynamic facilities in the U.S., and provides the company a strong cash flow stream, rising profitability and additional volume revenue. The company's results for fourth quarter 2013 revealed a rise in revenues and earnings year over year, due mostly to an improvement in solid waste trends. Moreover, the current effort towards increasing operational efficiency has led the company to adopt compressed natural gas collection vehicles and automated-side loaders, reducing cost and improving profitability. All of these are likely to act as catalysts for a long-term growth, giving the company capacity to increase ROICs over time.

Some Setbacks

Republic Services is not as large as Waste Management (WM), and is still exposed to diverse macroeconomic fluctuations. The firm conducts recycling operations by processing recyclable materials for sale. Yet these recycled products are subjected to market price fluctuations and commodity price volatility, resulting in a possible negative impact on earnings. Moreover, competition is always pressuring prices, and affecting profitability. Competitive markets' disposal overcapacity might as well prevent the firm from adjusting its prices on time.

Final Comment

The waste management industry requires high investment and costly structure. As Republic Services' disposal assets represent a long-term benefit, the company is likely to sustain its position amid the market. Despite the recently deteriorated gross and operating margins, the company is still likely to recover, especially due to the overall economic improvement and normalized levels of pricing and volume. Plus, increasing volumes should lead to better operating leverage, improving efficiency in utilization of disposal assets.

Analysts feeling bearish suggest ROICs have been declining since 2011, result that might indicate the merge with Allied Waste is still questionable. Nevertheless, other more bullish analysts coincide when saying that Republic Services combines strong free cash flow and manageable financial leverage which results in increased dividend payment, repurchasing shares. ROE of 7.6 is above industry average 5.4, and the company has historically promulgated a conservative balance sheet with a healthy liquidity position. Still, nearby results might show whether the company's margin reduction problems are due to environmental circumstances or, else, derived from efficiency problems inside its business structure.

Disclosure: Damian Illia holds no position in any stocks mentioned.

About the author:Damian IlliaA fundamental analyst at Lonetreeanalytics.com constantly looking for value and income investments.

Visit Damian Illia's Website

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Top 5 Energy Stocks To Invest In Right Now

Popular Posts: 6 Biotechnology Stocks to Buy Now7 “Triple A” Stocks to Buy5 Pharmaceutical Stocks to Buy Now Recent Posts: 5 Oil and Gas Stocks to Buy Now 6 Machinery Stocks to Buy Now 5 Electrical Equipment Stocks to Sell Now View All Posts

This week, five Oil and Gas stocks are improving their overall ratings on Portfolio Grader. Each of these stocks is rated an “A” (“strong buy”) or “B” overall (“buy”).

Chesapeake Midstream Partners (NYSE:) ups its rating to a B (“buy”) this week after earning a C (“hold”) in the week before. Chesapeake Midstream Partners owns, operates, develops, and acquires natural gas, natural gas liquids, and oil gathering systems, as well as other midstream energy assets in the United States. .

Top 5 Energy Stocks To Invest In Right Now: Renegade Petroleum Ltd (RPL)

Renegade Petroleum Ltd. (Renegade) is an exploitation and exploration focused light oil producer. Renegade's primary focus areas are located in southeast Saskatchewan in various pools, such as Bakken, Souris Valley, Frobisher, Midale and Kisby, as well as the Dodsland area of the Viking play in west-central Saskatchewan. It also has working interests in North Dakota pursuant to a farm-in agreement respecting land in Renville County that is prospective for Bakken, Threeforks/Sanish and Frobisher light oil. In addition the Company has a light oil opportunity in the Spearfish play in Manitoba. It has two geographic segments: western Canada and the State of North Dakota, the United Sates. In December 2012, the Company acquired certain strategic light oil assets. In February 2014, the Company closed the disposition of certain oil and gas assets in southeast Saskatchewan. Advisors' Opinion:

[By John Udovich]
Many American oil and gas investors are probably familiar with the major large and small cap players in the Bakken formation in North Dakota and Montana, but few American investors are probably familiar with�the active players further to the north in the�oil and gas rich Canadian provinces of Saskatchewan and Alberta�with small cap stocks like Alexander Energy Ltd (CVE: ALX), Renegade Petroleum Ltd (CVE: RPL) and Centor Energy Inc (OTCBB: CNTO) along with large cap Suncor Energy Inc (NYSE: SU) being among those�pumping out their share of noteworthy news lately. I should point out that�Canada�� oil reserves are ranked #3 after to Venezuela and Saudi Arabia with over 95% of these reserves being the controversial�oil sands of Alberta while the neighboring province of Saskatchewan (which the Bakken formation actually stretches into) along with offshore areas of Newfoundland also containing substantial production and reserves. Moreover and excluding the oil sands, Alberta would have 39% of Canada�� remaining conventional oil reserves,�followed by�offshore Newfoundland with�28% and Saskatchewan with 27%.

Top 5 Energy Stocks To Invest In Right Now: Midstates Petroleum Company Inc (MPO)

Midstates Petroleum Company, Inc. is an independent exploration and production company. The Company�� areas of operation include Pine Prairie, South Bearhead Creek/Oretta, West Gordon and North Cowards Gully. Its Upper Gulf Coast Tertiary trend extends from south Texas to Mississippi across its operating areas in central Louisiana. As of December 31, 2011, it had accumulated approximately 77,100 net acres in the trend. As of December 31, 2011, its development operations are focused in the Wilcox interval of the trend. The Company�� business is conducted through Midstates Petroleum Company LLC, as a direct, wholly owned subsidiary. In September 2012, the Company and its subsidiary acquired all of Eagle Energy Production, LLC�� producing properties as well as their developed and undeveloped acreage primarily in the Mississippian Lime oil play in Oklahoma and Kansas.

As of December 31, 2011, it drilled 57 gross wells in the trend, approximately 93% of. During the year ended December 31, 2011, its average daily production were 7,499 barrels of oil equivalent per day. As of December 31, 2011, it had a total of 974 gross vertical drilling locations, including 115 related to acreage under option, in the trend. As of December 31, 2011, the Company�� properties included approximately 92 gross active producing wells, 95% of, which it operate, and in which it held an average working interest of approximately 99% across its 77,100 net acre leasehold. During March 31, 2012, the Company continued its drilling program, spudding 14 wells, of which nine are producing, three are being drilled and two are waiting to be completed. As of December 331, 2011, it averaged daily production is approximately 9,000 barrels of oil equivalent per day.

Pine Prairie

The Company�� properties in the Pine Prairie area represented 46% of its total proved reserves as of December 31, 2011. During 2011, the Company�� average production from these properties was 3,793 net barrels of oil equ! ivalent per day, consisting of 2,143 barrels of oil, 565 barrels of natural gas liquidations (NGLs) and 6,508 million cubic feet of natural gas per day. As of December 31, 2011, it held an average working interest and average net revenue interest of 92.2% and 68.9%, respectively, on its acreage in Pine Prairie area. The Company has an additional 194 identified drilling locations in this area based primarily on 10-acre spacing.

South Bearhead Creek/Oretta

The Company�� properties in the South Bearhead Creek/Oretta area represented 20.3% of its total proved reserves as of December 31, 2011. During 2011, the Company�� average production from these properties was 4,367 net barrels of oil equivalent per day, consisting of 2,196 barrels of oil, 438 barrels of NGLs and 10,396 million cubic feet of natural gas per day. During 2011, these wells produced at an average daily rate of 2,413 net barrels of oil equivalent per day. As of December 31, 2011, it held an average working interest and average net revenue interest of 100% and 78.5%, respectively, on its acreage in South Bearhead Creek/Oretta area. The Company has an additional 43 identified drilling locations in this area based primarily on 40-acre spacing.

West Gordon

The Company�� properties in the West Gordon area represented 21% of its total proved reserves as of December 31, 2011. During 2011, the Company�� average production from these properties was 1,002 net barrels of oil equivalent per day, consisting of 617 barrels of oil, 68 barrels of NGLs and 1,901 million cubic feet of natural gas per day. As of December 31, 2011, it held an average working interest and average net revenue interest of 95.9% and 71.2%, respectively, on its acreage in West Gordon area. The Company has an additional 74 identified drilling locations in this area based primarily on 40-acre spacing.

North Cowards Gully

The Company�� properties in the North Cowards Gully area represented 11.5% of ! its total! proved reserves as of December 31, 2011. During 2011, the Company�� average production from these properties was 149 net barrels of oil equivalent per day consisting of 103 barrels of oil, 11 barrels of NGLs, and 211 million cubic feet of natural gas per day. As of December 31, 2011, it held an average working interest and average net revenue interest of 94.3% and 71.2%, respectively, on its acreage in North Cowards Gully area. The Company has an additional 95 identified drilling locations in this area based primarily on 40-acre spacing.

Advisors' Opinion:

[By The Energy Report]
Onshore, my favorite play is the Utica Shale, in which my top plays are Gulfport Energy Corp. (GPOR) and Rex Energy Corp. (REXX). Both companies have highly economic acreage, solid balance sheets and industry-leading production growth. I also like Rex Energy for its likely production upside. Another one of my favorite plays is the Eagle Ford Shale, in which my top plays are Penn Virginia Corp. (PVA) and Sanchez Energy Corp. (SN). Both have core acreage in the region, improving operating results and experienced management. Another favorite name of mine is Midstates Petroleum Co. Inc. (MPO). The company has assets in three solid plays and a management team with a long successful track record. Those are my favorite names at this time.
[By Roberto Pedone]
One energy player that's starting to move within range of triggering a major breakout trade is Midstates Petroleum (MPO), an independent exploration and production company focused on the application of modern drilling and completion techniques to oil-prone resources. This stock is off to a rough start in 2013, with shares off by 30%.

If you look at the chart for Midstates Petroleum, you'll notice that this stock has recently come out of a nasty downtrend that took shares from over $8 to its low of $4.26 a share. Shares of MPO have started to find some buying interest over the last month at $4.44, 4.26 and $4.48 a share, as the stock has held those levels on recent pullbacks. This could be signaling that a bottom is forming for MPO, since the downside volatility looks over. Shares of MPO are now rebounding strong off those support levels and are quickly moving within range of triggering a major breakout trade.

Traders should now look for long-biased trades in MPO if it manages to break out above some near-term overhead resistance levels at $4.82 a share and then once it takes out its 50-day moving average at $5.30 a share with high volume. Look for a sustained move or close above those levels with volume that hits near or above its three-month average action of 542,939 shares. If that breakout triggers soon, then MPO will set up to re-test or possibly take out its next major overhead resistance levels at $6 to its 200-day moving average of $6.54 a share.

Traders can look to buy MPO off any weakness to anticipate that breakout and simply use a stop that sits right below some key near-term support levels at $4.48 or $4.26 a share. One can also buy MPO off strength once it takes out those breakout levels with volume and then simply use a stop that sits a comfortable percentage from your entry point.

5 Best Biotech Stocks For 2014: World Point Terminals LP (WPT)

World Point Terminals, LP, incorporated on April 19, 2013, is a fee-based Delaware limited partnership formed to own, operate, develop and acquire terminals and other assets relating to the storage of light refined products, heavy refined products and crude oil. WPT GP, LLC is the general partner of the Company. It operates in a single reportable segment consists primarily of the fee-based storage and terminaling services it performs under contracts with its customers. The Company�� storage terminals are located in the East Coast, Gulf Coast and Midwest regions of the United States and, as of May 31, 2013, had a combined available storage capacity of 12.4 million barrels. The Company provides terminaling and storage of light refined products, such as gasoline, distillates and jet fuels; heavy refined products, such as residual fuel oils and liquid asphalt, and crude oil. Most of its terminal facilities are located on waterways, and have truck racks. Several of its terminal facilities also have rail or pipeline access. As of May 31, 2013, approximately 93% of its available storage capacity was under contract.

The Company generates revenue from Storage Services Fees, Ancillary Services Fees and Additive Services Fees. Storage Services Fees are its customers pay base storage services fees, which are fixed monthly fees paid at the beginning of each month to reserve storage capacity in its tanks and to compensate it for receiving up to a base product volume on their behalf. The Company charges ancillary services fees to its customers for providing services, such as heating, mixing and blending its customers��products that are stored in its tanks; transferring its customers��products between its tanks; at its Granite City terminal, adding polymer to liquid asphalt, and rail car loading and dock operations. The Company generates revenue from fees for injecting generic gasoline, gasoline, lubricity, red dye and cold flow additives to its customers��products.

Advisors' Opinion:

[By John Emerson]
Berman pioneered the idea of the World Poker Tour (WPT) and sold the concept to the Travel Channel. Watching poker on television had always been boring since the viewing audience could not see the down cards which the players held. Berman remedied that problem by allowing a camera to expose the down cards to the TV audience. That idea suddenly transformed Texas Holdem into a fascinating spectator�� sport. By the end of 2003 the stock had reached its book value of 15 dollars a share and I decided to take my profits, perhaps a bit prematurely. The stock quickly climbed to about 30 dollars a share on sheer momentum.
[By Jon C. Ogg]
World Point Terminals L.P. (NYSE: WPT) was initiated as Outperform with a $23 price target at Credit Suisse.

See also more analyst upgrades and downgrades for Tuesday.
[By Robert Rapier]
World Point Terminals (NYSE: WPT) owns and operates terminals and other assets for the storage of light refined products, heavy refined products and crude oil. World Point’s storage terminals are located in the East Coast, Gulf Coast and Midwest regions of the US. The partnership debuted on Aug. 9, and units have gained 2 percent since. The partnership agreement provides for a minimum quarterly distribution of $1.20 per unit on an annualized basis. At the recent closing price of $19.64/unit, this equates to a minimum annualized yield of 6.1 percent.

Top 5 Energy Stocks To Invest In Right Now: Linn Energy LLC (LINE)

Linn Energy, LLC (LINN Energy) is an independent oil and natural gas company. The Company�� properties are located in the United States, primarily in the Mid-Continent, the Permian Basin, Michigan, California and the Williston Basin. Mid-Continent Deep includes the Texas Panhandle Deep Granite Wash formation and deep formations in Oklahoma and Kansas. Mid-Continent Shallow includes the Texas Panhandle Brown Dolomite formation and shallow formations in Oklahoma, Louisiana and Illinois. Permian Basin includes areas in West Texas and Southeast New Mexico. Michigan includes the Antrim Shale formation in the northern part of the state. California includes the Brea Olinda Field of the Los Angeles Basin. Williston Basin includes the Bakken formation in North Dakota. On December 15, 2011, the Company acquired certain oil and natural gas properties located primarily in the Granite Wash of Texas and Oklahoma from Plains Exploration & Production Company (Plains).

On November 1, 2011, and November 18, 2011, it completed two acquisitions of certain oil and natural gas properties located in the Permian Basin. On June 1, 2011, it acquired certain oil and natural gas properties in the Cleveland play, located in the Texas Panhandle, from Panther Energy Company, LLC and Red Willow Mid-Continent, LLC (collectively Panther). On May 2, 2011, and May 11, 2011, it completed two acquisitions of certain oil and natural gas properties located in the Williston Basin. On April 1, 2011, and April 5, 2011, the Company completed two acquisitions of certain oil and natural gas properties located in the Permian Basin. On March 31, 2011, it acquired certain oil and natural gas properties located in the Williston Basin from an affiliate of Concho Resources Inc. (Concho). During the year ended December 31, 2011, the Company completed other smaller acquisitions of oil and natural gas properties located in its various operating regions. As of December 31, 2011, the Company operated 7,759 or 69% of its 11,230 gross productiv! e wells.

Mid-Continent Deep

The Mid-Continent Deep region includes properties in the Deep Granite Wash formation in the Texas Panhandle, which produces at depths ranging from 10,000 feet to 16,000 feet, as well as properties in Oklahoma and Kansas, which produce at depths of more than 8,000 feet. Mid-Continent Deep proved reserves represented approximately 47% of total proved reserves, as of December 31, 2011, of which 49% were classified as proved developed reserves. The Company owns and operates a network of natural gas gathering systems consisting of approximately 285 miles of pipeline and associated compression and metering facilities that connect to numerous sales outlets in the Texas Panhandle.

Mid-Continent Shallow

The Mid-Continent Shallow region includes properties producing from the Brown Dolomite formation in the Texas Panhandle, which produces at depths of approximately 3,200 feet, as well as properties in Oklahoma, Louisiana and Illinois, which produce at depths of less than 8,000 feet. Mid-Continent Shallow proved reserves represented approximately 20% of total proved reserves, as of December 31, 2011, of which 70% were classified as proved developed reserves. The Company owns and operates a network of natural gas gathering systems consisting of approximately 665 miles of pipeline and associated compression and metering facilities that connect to numerous sales outlets in the Texas Panhandle.

Permian Basin

The Permian Basin is an oil and natural gas basins in the United States. The Company�� properties are located in West Texas and Southeast New Mexico and produce at depths ranging from 2,000 feet to 12,000 feet. Permian Basin proved reserves represented approximately 16% of total proved reserves, as of December 31, 2011, of which 56% were classified as proved developed reserves.

Michigan

The Michigan region includes properties producing from the Antrim Shale formation in the northern ! part of t! he state, which produces at depths ranging from 600 feet to 2,200 feet. Michigan proved reserves represented approximately 9% of total proved reserves, as of December 31, 2011, of which 90% were classified as proved developed reserves.

California

The California region consists of the Brea Olinda Field of the Los Angeles Basin. California proved reserves represented approximately 6% of total proved reserves, as of December 31, 2011, of which 93% were classified as proved developed reserves.

Williston Basin

The Williston Basin is one of the premier oil basins in the United States. The Company�� properties are located in North Dakota and produce at depths ranging from 9,000 feet to 12,000 feet. Williston Basin proved reserves represented approximately 2% of total proved reserves, as of December 31, 2011, of which 48% were classified as proved developed reserves.

Advisors' Opinion:

[By Matt DiLallo]
Resource players like SandRidge and Oasis aren't the only energy companies aggressively spending to grow. E&P MLP's like BreitBurn Energy Partners (NASDAQ: BBEP ) and LINN Energy (NASDAQ: LINE ) are also getting into the capital spending act. As you could see in the earlier chart, LINN spends the greatest portion of its cash flow to grow its production. Not only that but LINN is in the process of closing its deal for Berry Petroleum which is a resource player that has been spending heavily to grow production. One of the reasons LINN, as well as BreitBurn, has been investing heavily is to grow oil production in order to offset the effect of lower natural gas prices on margins.
[By Rick Munarriz]
5. Frank LINN
LINN Energy (NASDAQ: LINE ) didn't get the job done this quarter.

Revenue and earnings fell short of Wall Street expectations for the independent oil and natural gas developer. LINN's adjusted earnings of $0.16 a share were well shy of the $0.24 a share that analysts were targeting.

Top 5 Energy Stocks To Invest In Right Now: Mcdermott International Inc (MDR)

McDermott International, Inc. (MII),incorporated on August 11, 1959, is a engineering, procurement, construction and installation (EPCI) company. The Company is focused on designing and executing complex offshore oil and gas projects worldwide.

The Company provides fully integrated EPCI services; it delivers fixed and floating production facilities, pipeline installations and subsea systems from concept to commissioning. Its business segments consist of Asia Pacific, Atlantic, Caspian and the Middle East. On March 19, 2012, the Company completed the sale of its former charter fleet business, which operated 10 of the 14 vessels.

Asia Pacific Segment

Through the Company�� Asia Pacific segment, it serves the needs of customers primarily in Australia, Indonesia, Vietnam, Malaysia and Thailand. Project focus in this segment includes the fabrication and installation of fixed and floating structures and the installation of pipelines and subsea systems. The majority of its projects in this segment are performed on an EPCI basis. Engineering and procurement services are provided by its Singapore office and are supported by additional resources located in Chennai, India and Houston, Texas. The primary fabrication facility for this segment is located on Batam Island, Indonesia. Additionally, through its equity ownership interest in a joint venture, the Company has developed a fabrication facility located in China.

The Company competes with Allseas Marine Contractors S.A.; Daewoo Engineering & Construction Co., Ltd.; EMAS Offshore Pte Ltd.; Heerema Group; Hyundai Heavy Industrial Co., Ltd.; Nippon Steel Corporation; Saipem S.P.A.; Samsung Heavy Industries Co., Ltd.; Sapura Kencana Petroleum; Subsea 7 S.A.; Swiber Holdings Ltd., and Technip S.A.

Atlantic Segment

Through the Company�� Atlantic segment, it serves the needs of customers primarily in the United States, Brazil, Mexico, Trinidad and West Africa. Project focus in this s! egment includes the fabrication and installation of fixed and floating structures and the installation of pipelines and subsea systems. Engineering and procurement services are provided by its Houston office, and its New Orleans office provides marine engineering capabilities to support its global marine activities. The primary fabrication facilities for this segment are located in Morgan City, Louisiana and Altamira, Mexico.

The Company competes with Allseas Marine Contractors S.A.; Dragados Offshore Mexico, S.A.; Gulf Island Fabrication Inc.; Heerema Group; Helix Energy Solutions Group, Inc.; KBR, Inc.; Kiewit Corporation; Saipem S.P.A.; Subsea 7 S.A., and Technip S.A.

Middle East Segment

Through the Company�� Middle East segment, which includes the Caspian region, it serves the needs of customers primarily in Saudi Arabia, Qatar, the United Arab Emirates (U.A.E.), Kuwait, India, Azerbaijan, Russia, and the North Sea. Project focus in this segment relates primarily to the fabrication and offshore installation of fixed and floating structures and the installation of pipelines and subsea systems. The majority of its projects in this segment are performed on an EPCI basis. Engineering and procurement services are provided by its Dubai, U.A.E., Chennai, India and Al Khobar, Saudi Arabia offices and are supported by additional resources from its Houston and Baku, Azerbaijan offices. The primary fabrication facility for this segment is located in Dubai, U.A.E.

The fabrication facilities in each segment are equipped with a variety of heavy-duty construction and fabrication equipment, including cranes, welding equipment, machine tools and robotic and other automated equipment. Project installation is performed by construction vessels, which the Company owns or leases and are stationed throughout the various regions and provide structural lifting/lowering and pipelay services. These construction vessels are supported by its multi-function vessels and chart! ered vess! els from third parties to perform a wide array of installation activities that include anchor handling, pipelay, cable/umbilical lay, dive support and hookup/commissioning.

The Company competes with Hyundai Heavy Industrial Co. Ltd.; Keppel Corporation; Larsen and Toubro Ltd (India); National Petroleum Construction Company (Abu Dhabi); Saipem S.P.A.; Technip S.A.; and Valentine and Swiber Holdings Ltd.

Advisors' Opinion:

[By Jake L'Ecuyer]
Energy sector gained 0.85 percent in the US market today. Among the energy stocks, McDermott International (NYSE: MDR) was down more than 9.3 percent, while Compressco Partners LP (NASDAQ: GSJK) tumbled around 5.3 percent.
[By Jake L'Ecuyer]
Equities Trading DOWN
Shares of McDermott International (NYSE: MDR) were down 6.97 percent to $7.55 after the company reported a Q4 loss of $1.37 per share on revenue of $517.3 million. It also withdrew its previous outlook. Capital One Financial downgraded the stock from Equalweight to Underweight and cut the price target from $8.00 to $6.00.
[By Roberto Pedone]
McDermott International (MDR) is an engineering, procurement, construction and installation company engaged on designing and executing complex offshore oil and gas projects. This stock closed up 2.2% to $9.52 in Thursday's trading session.

Thursday's Range: $6.69-$6.95

52-Week Range: $6.68-$13.56

Thursday's Volume: 8.51 million

Three-Month Average Volume: 4.48 million

From a technical perspective, MDR bounced modestly higher here right off its recent low of $6.68 with heavy upside volume. This stock recently gapped down sharply from close to $9 to that $6.68 low with heavy downside volume. That move has now pushed shares of MDR into extremely oversold territory, since the stock has a current relative strength index reading of 19.84. Oversold can always get more oversold, but it's also an area where a stock can experience a powerful bounce higher form if buyers decide to step in.

Traders should now look for long-biased trades in MDR as long as it's trending above that $6.68 low and then once it sustains a move or close above its gap down day high near $7.50 with volume that hits near or above 4.48 million shares. If we get that move soon, then MDR will set up to re-fill some of its previous gap down zone that started near $9. Some possible upside targets for MDR if it gets into that gap with volume are $8 to $8.20.

Friday, March 28, 2014

Taxes: Deductions for a business with no income?

With the April 15 tax deadline fast approaching, you probably have questions. Fortunately, we have answers. Every day until April 15, members of the American Institute of Certified Public Accountants have agreed to answer selected tax questions fromUSA TODAY readers. Submit your questions to jwaggoner@usatoday.com.

Q. I have a limited liability company out of my home which has not done any business since 2012, and I do not foresee any business or income from it in the near future. Is it Ok to keep claiming the deductions (utilities, health insurance, etc.) for it every year, assuming I don't decide to dissolve the business?

A. It is unlikely these are deductible business expenses. The law (IRC §162) states, "There shall be allowed as a deduction all the ordinary and necessary expenses paid or incurred during the taxable year in carrying on any trade or business…" Since there does not appear to be a business being carried on, these amounts would not be deductible as business expenses.

NEED HELP: Get all the latest tax news and advice

Some of the expenses might be deductible as non-business deductions. For example, health Insurance might be deductible as a medical expense or mortgage interest might be deductible as an itemized deduction.

If these costs are related to closing down a business, then some of them may be deductible. However, the deductions related to a home office are generally limited by income and require that the area be used exclusively and regularly as the principle place of business. If the business is closed down, it will be hard to satisfy these criteria.

Conrad Davis, partner, Crowe Horwath LLP, Washington, D.C.

Previous questions:

How to report 401(k) rollover?

Are health insurance premiums deductible?

Should my daughters file taxes?

Can pension income go to a Roth IRA?

What to do if you forgot a tax payment

Is a gift from an IRA taxable?

Deducting medical costs for an injury

10 Best Low Price Stocks To Watch Right Now

Despite a recovering U.S. economy, teenage unemployment remains high. Teen apparel retailers such as Abercrombie & Fitch Co. (ANF) and Aeropostale Inc. (ARO) seek to continue growing in this unfavorable macroeconomic scenario, yet they face fierce competition. As of late, both these firms have had a hard time connecting with customers due to merchandising missteps, which have placed their business in a tough spot.

Discount Retailer with Poor Prospects

The mall-based apparel retailer Aeropostale caters fashion basics at low prices for teenagers and children. At its 995 company own stores, the firm provides merchandise for 14 to 17-year-olds, which constitute the company�� core customers. After becoming one of the most shopped brands in the U.S., however, Aeropostale fell out of favor when its products failed to meet fashion trends. John Hussman of Hussman Economtrics Advisors saw this negative trend and decided to sell his entire stake in the firm earlier this year.

With the teen apparel industry suffering from reduced traffic and very aggressive discounting, Aeropostale has been forced into a discounting cycle. Despite being historically more promotional than its competitors, the firm reduce prices further in order to keep up with the competition. However, this business strategy has resulted in reduced margins for the company. Offering better merchandise for similar prices, fast growing fashion retailers such as H&M and Forever 21 have been stealing market share from Aeropostale for years now. Hence, the main issue the firm faces is tricky fashion trends. As long as the business strategy does not get the fashion right, it will be increasingly hard to expand its customer base, or even sustain current sales levels.

10 Best Low Price Stocks To Watch Right Now: Pioneer Southwest Energy Partners L.P.(PSE)

Pioneer Southwest Energy Partners L.P. engages in the ownership and acquisition of oil and natural gas properties in the United States. As of December 31, 2009, it had non-operated working interests in approximately 1,155 producing wells located in the Spraberry field in the Permian Basin of west Texas. Pioneer Natural Resources GP LLC serves as the general partner of the company. The company was founded in 2007 and is based in Irving, Texas. Pioneer Southwest Energy Partners L.P. is a subsidiary of Pioneer Natural Resources USA, Inc.

Advisors' Opinion:

[By Robert Rapier]
Pioneer Southwest Energy Partners (NYSE: PSE) closes out the top five MLP performers for the year with a gain of 87 percent. However, units of this Texas-based upstream MLP that owned more than 1,100 wells in the Permian Basin area are no longer available, as the partnership merged with sponsor Pioneer Natural Resources (NYSE: PXD) on Dec. 17.

10 Best Low Price Stocks To Watch Right Now: Timios National Corp (HOMS)

Timios National Corporation, formerly Homeland Security Capital Corporation, incorporated on August 12, 1997, provides radiological, nuclear, environmental, disaster relief and electronic security solutions to government and commercial customers. The Company is engaged in the strategic acquisition, operation, development and consolidation of companies operating in the chemical, biological, radiological, nuclear and explosive, (CBRNE), incident response and security marketplaces within the homeland security industry. It is building consolidated enterprises (platform companies) through the acquisition and integration of businesses in the homeland security industry, particularly businesses focused on CBRNE incident response. In August 2011, the Company sold its Nexus Technologies Group. In October 2011, the Company sold its Safety and Ecology Holding Corporation subsidiary to Perma-Fix Environmental Services, Inc. In May 2012, the Company announced the acquisition by its subsidiary Timios, Inc. of Glenn County Title Company. In June 2013, Timios National Corp announced that it has completed the purchase of Glenn County Title Company (GCTC). In September 2013, Timios National Corp announced that it had executed a purchase agreement for the assets of Adobe Title, LLC.

The Company offers a range of management and operational services to each of its subsidiaries through a team of dedicated professionals. Its subsidiaries compensate its holding company for such services. Its core services include environmental remediation and restoration, regulatory compliance, facilities management, facility deactivation, decommissioning and demolition, emergency response, design and construction services and security integration to the United States government agencies, such as the Department of Energy (DOE), the Department of Defense (DoD), the Environmental Protection Agency (EPA), the Federal Emergency Management Agency (FEMA), the United states Army Corps of Engineers and the National Aeronautics and Space ! Administration (NASA). It conducts its operations through Safety & Ecology Holdings Corporation (Safety), its wholly owned subsidiary; Nexus Technologies Group, Inc. (Nexus), its 93% owned subsidiary, and Polimatrix, Inc. (PMX), its joint venture. Safety is an international provider of environmental, nuclear and radiological infrastructure remediation, disaster relief solutions and advanced construction services. Nexus designs, develops and installs integrated security systems for government and commercial clients. PMX markets, sells and distributes radiological detection equipment.

Safety & Ecology Holdings Corporation

Safety is a provider of global environmental, hazardous and radiological infrastructure remediation, upgrades and nuclear services in the United States and the United Kingdom. Safety�� main business areas and service offerings include decommissioning and remediation environmental and remedial consultancy services; environmental and consultancy services; nuclear energy design, build, refurbishment and operational support services, and instrumentation and measurement technologies. Safety offers a range of services that include characterization, decontamination, decommissioning of facilities, soil and groundwater remediation, infrastructure reduction and demolition, site preparation, excavation, and remedial system construction; underground and overhead utility installation; electrical and mechanical installation; security fencing and device installation and upgrades; building renovation; piping; roadways, parking lots, and drainage system construction/repair, and landfill remediation and capping.

Safety engages in facility deactivation, demolition and closure solutions, including project investigation; radiological pre-engineering; demolition planning; removing above ground structures and structural components; storing, testing, certifying, processing and shipping nuclear waste, and abatement of hazardous materials. Safety focuses its service offe! ring on t! he application and integration of health physics, industrial hygiene, hazardous material consultancy and safety and health. In addition, Safety couples its technology with its instrumentation offering, on-site radiological laboratory capabilities and mobile radiological materials license to provide radiological services and consultation. Safety provides integrated services to the nuclear energy industry. Safety provides specialized services to a customer base, including government agencies, commercial customers and major engineering and construction companies around the world that are focused in the nuclear new plant deployment initiative, facility operation, decommissioning and refurbishment. The elements of Safety�� technology offering are instrumentation services and instrumentation technology, both of which are targeted to field investigations, characterizations of contaminants and clean-up and material management and disposal solutions.

The Company competes with Stoller, Cabrera, Portage, LATA Northwind, Demco, Eagle, Pro2Serv, PMTech, Navarro, Energy Solutions, the Washington Group, Tetra Tech, Shaw Environmental and C2HM Hill.

Nexus Technologies Group, Inc.

Nexus is a mid-Atlantic security integrator for the corporate and governmental security markets that specializes in the engineering and installation of custom designed integrated electronic security solutions, including access control, alarm, closed circuit television (CCTV), video, communication, perimeter protection and bomb and metal detection security systems. Nexus provides solutions to protect people, property and assets. As a systems integrator, Nexus designs, customizes, installs, integrates and maintains closed CCTV, access control, video and communication systems for its customers. Nexus has undertaken projects in a range of markets, including financial services, corporate and commercial, healthcare, government, nuclear utility services, public transportation, airports, industrial complexes,! museums,! prisons, higher education and data centers. As a provider of custom engineered integrated security solutions, including access control, alarm/intrusion, CCTV, communication, perimeter protection and bomb and metal detection security systems, Nexus is aligned with original equipment manufacturers (OEMs). Nexus has focused on five sectors in which it intends to expand, both vertically and horizontally. These sectors are Financial Institutions, Infrastructure Security, Government Facilities, Education Facilities and Corporate Markets.

Financial Institutions include banks, brokerage facilities, trading facilities and foreign currency exchange centers. Infrastructure Security include nuclear power generating facilities, water processing facilities, electricity generating facilities, power transfer stations and transportation centers, which include highway, bridge, tunnel, airport, rail and port security. Government Facilities include federal, state and local government buildings and offices, domestic and foreign embassies, military installations and police and fire department operations centers. Education Facilities include grammar, high school and college buildings, dorms and campuses, satellite learning centers and daycare centers. Corporate Markets include office buildings and grounds, parking lots, garages, retail locations, warehouses and apartment and condominium complexes.

The Company competes with Henry Brothers Electronics, Inc., Diebold, Inc. and ADT.

POLIMATRIX, INC.

PMX is a total solutions provider delivering radiation and nuclear protection and detection services through several engineered portable and stationary devices. PMX�� business plan is the development and marketing of radiological detection products and services. PMX has developed a range of domestic and international marketing initiative in Washington, DC, Virginia and Illinois. These states have used the PMX detection devices for a range of detection, prevention and first respon! der activ! ities. PMX�� product line of portable detection devices are designed to detect potential threats and can be positioned along transportation routes or carried by nuclear power generating facility security personnel. It operates PMX with the assistance of Safety�� personal.

The Company competes with Thermo Scientific and Canberra.

Advisors' Opinion:

[By Peter Graham]
Small cap stocks Timios National Corp (OTCMKTS: HOMS) and Lattice Inc (OTCMKTS: LTTC) surged 54.29% and 20.83%, respectively, while Unique Pizza & Subs Corp (OTCMKTS: UPZS) sank 27.27% last Friday. But today is a new trading week with the last two trading days for the year. So what will these three small caps do today, tomorrow and after New Years�� Here is a closer look:

Top Canadian Companies To Invest In 2014: Nissan Motor Co Ltd (NSANF)

NISSAN MOTOR CO., LTD. is an automobile manufacturer. The Company has two business segments. The Automobile segment is engaged in the manufacturing, trading and distribution of various types of automobiles, marine products and accessories, as well as the research, development and sale of lithium-ion secondary batteries. The Sales Financing segment is engaged in the provision of sales financing, as well as property and casualty insurance services, among others. On November 11, 2013, the Company announced that it had established an Indonesia-based subsidiary, which is engaged in the captive finance business to make loans to the customers of Indonesia. Advisors' Opinion:

[By Peter Valdes-Dapena]
Nissan (NSANF) will ask owners of effected vehicles to bring their vehicles to a Nissan or Infiniti dealer to have the ABS computer chips reprogrammed. The service will be performed at no charge. No accidents or injuries have been reported due to the problem, Nissan said.
[By Chris Isidore]
Nissan (NSANF) said it is not aware of any deaths caused by the problem, but can not give details about resulting injuries.

The problem is with the sensors in the front passenger seats that are supposed to tell if an adult or a child is sitting on the seat. Because the risk of injury or death to child is greater from an airbag than from an accident itself, if the system senses there is not enough weight in the front passenger seats, that airbag will not deploy.
[By Chris Isidore]
Japan's weak yen policy has been a tremendous boon for Japanese rivals such as Toyota Motor (TM), Honda (HMC) and Nissan (NSANF), since the dollars they get for U.S. sales translate into more yen.

10 Best Low Price Stocks To Watch Right Now: ProShares Short MSCI Emerging Markets (EUM)

ProShares Short MSCI Emerging Markets (the Fund) seeks daily investment results that correspond to the inverse (opposite) of the daily performance of the MSCI Emerging Markets Index. The MSCI Emerging Markets Index adjusts the market capitalization of index constituents for free float and targets for index inclusion 85% of free float-adjusted market capitalization in each industry group in global emerging markets countries. The Fund takes positions in securities and/or financial instruments that, in combination, should have similar daily return characteristics as -100% of the daily return of the MSCI Emerging Markets Index. The MSCI Emerging Markets Index is a price return index. The Fund�� investment advisor is ProShare Advisors LLC. Advisors' Opinion:

[By Anthony Mirhaydari]
Editor�� note: This column is part of our Best Stocks for 2014 contest. Anthony Mirhaydari’s pick for the contest is the�ProShares Short MSCI Emerging Markets ETF�(EUM).

10 Best Low Price Stocks To Watch Right Now: U.S. Dollar Index(DX)

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

Advisors' Opinion:

[By Jon C. Ogg]
Dynex Capital Inc. (NYSE: DX) is rated as Buy, with a price target of $9.00, versus a recent price of $8.02. The book value was $8.94 at the end of last quarter and was projected to be $8.91 by the end of August.

10 Best Low Price Stocks To Watch Right Now: Pacer International Inc.(PACR)

Pacer International, Inc., together with its subsidiaries, provides asset-light transportation and logistics services primarily in North America, Asia, Europe, Australia, South America, and Africa. It operates in two segments, Intermodal and Logistics. The Intermodal segment offers intermodal rail transportation, local cartage and trucking, intermodal marketing services, container capacity, on-site operational services, and door-to-door shipment management services. As of December 31, 2011, its equipment fleet consisted of 1,592 double-stack railcars, 18,183 containers, and 12,783 chassis. The Logistics segment provides highway brokerage, warehousing and distribution, international freight forwarding, ocean and air shipping, and supply chain management services, as well as offers non-vessel-operating common carrier to end-user customers. The company markets and supports its services to cargo owners, steamship lines, truckload carriers, truck brokers, and freight forwarders , as well as other third party transportation service providers, such as intermodal marketing companies, third-party logistics companies, and shippers? agents through its direct sales and customer service representatives. Pacer International, Inc. was founded in 1974 and is headquartered in Dublin, Ohio.

Advisors' Opinion:

[By Jake L'Ecuyer]
XPO Logistics (NYSE: XPO) shot up 7.06 percent to $30.01 after the company announced its plans to acquire Pacer International (NASDAQ: PACR) in a deal valued at $335 million.

10 Best Low Price Stocks To Watch Right Now: Methanex Corporation (MEOH)

Methanex Corporation, together with its subsidiaries, engages in the production, marketing, and sale of methanol. The company also purchases and re-sells methanol produced by others. Its methanol is a clear liquid commodity chemical that is used to produce traditional chemical derivatives, including formaldehyde, acetic acid, and various other chemicals. The company�s methanol is also used in energy-related applications; for blending into gasoline, as a feedstock in the production of dimethyl ether, which can be blended with liquefied petroleum gas for use in household cooking and heating, and in the production of biodiesel; and used to produce methyl tertiary-butyl ether, a gasoline component, as well as used into olefins applications. The company supplies its methanol to petrochemical producers and distributors in North America, the Asia Pacific, Europe, and Latin America. Methanex Corporation was founded in 1968 and is headquartered in Vancouver, Canada.

Advisors' Opinion:

[By Mani]
[Related -Methanex (MEOH) Downgraded To 'Sector Underperformer' By CIBC, PT Raised]
From a long-term perspective, a modest near-term softening in methanol prices is a net positive as elevated levels have left the market increasingly concerned over the potential impact on future energy derivative demand growth and the potential for elevated prices to continue to incentivize new capacity announcements.

10 Best Low Price Stocks To Watch Right Now: Intrepid Potash Inc (IPI)

Intrepid Potash, Inc.( Intrepid), incorporated on November 19, 2007, is a producer of muriate of potash (potassium chloride or potash) in the United States and are engaged the production and marketing of potash and langbeinite (sulfate of potash magnesia), another mineral containing potassium, magnesium, and sulfate, that is produced from langbeinite ore and as Trio when it refers to sales and marketing. Its Carlsbad assets consist of underground mining operations, which are supported by surface processing facilities. It is also operators of solar solution mining operations, as its Moab and Wendover facilities both utilize these techniques for recovering potash. Its revenues are generated from the sale of potash and Trio. As of December 31, 2011, the Company owned five potash production facilities, three in New Mexico and two in Utah. Its two products are potash and langbeinite, which is marketed as Trio.

Potash

The Company derives revenues and gross margin are derived from the production and sales of potash. Its potash is marketed for sale into three primary markets: the agricultural market as a fertilizer, the industrial market as a component in drilling and fracturing fluids for oil and gas wells, and the animal feed market as a nutrient. Its sales of potash tend to focus on agricultural areas and feed manufacturers in central and western United States, as well as oil and gas drilling areas in the Rocky Mountains and the greater Permian Basin area.

Trio

Trio is marketed into two primary markets, the agricultural market as a fertilizer and the animal feed market as a nutrient. It markets Trio internationally through an exclusive marketing agreement with PCS Sales (USA), Inc. (PCS Sales) for sales outside the United States and Canada and through a non-exclusive agreement for sales into Mexico.

Advisors' Opinion:

[By Robert Ciura]
As a result, valuations of industry leaders Potash Corp. (NYSE: POT ) , The Mosaic Company (NYSE: MOS ) , and Intrepid Potash (NYSE: IPI ) have compressed dramatically, leaving each stock looking very cheap on the surface.

10 Best Low Price Stocks To Watch Right Now: Tesoro Logistics LP(TLLP)

Tesoro Logistics LP engages in the ownership, operation, development, and acquisition of crude oil and refined products logistics assets in the United States. The company is involved in the gathering, terminalling, transportation, and storage of crude oil and refined products. Its assets consist of a crude oil gathering system in the Bakken Shale/Williston Basin area of North Dakota and Montana; eight refined products terminals in the midwestern and western United States; a crude oil and refined products storage facility; and five related short-haul pipelines. The company was founded in 2010 and is based in San Antonio, Texas. Tesoro Logistics LP is a subsidiary of Tesoro Corporation.

Advisors' Opinion:

[By Lauren Pollock]
Tesoro Logistics LP(TLLP), a company spun off in 2011 by oil refiner Tesoro Corp.(TSO), agreed to pay its former parent $650 million to acquire Los Angeles assets that include two marine terminals and a pipeline system.
[By Ben Levisohn]
Yesterday, Tesoro Corp. (TSO) sold a bunch of assets to Tesoro Logistics (TLLP) for $650 million, the second “drop-down,” or sale of assets by a parent company to a partnership.

10 Best Low Price Stocks To Watch Right Now: CannaVEST Corp (CANV)

CannaVEST Corp., formerly Foreclosure Solutions, Inc., incorporated on December 9, 2010, is engaged in the business of developing, producing, marketing and selling end consumer products to the nutriceutical industry containing the hemp plant extract, Cannabidoil (CBD). The Company produces raw ingredients for neutraceutical markets. This substance can be used with foods and nutritional supplements for consumer health and wellness benefits, as well as in the pharmaceutical industry. On March 4, 2013, the Company acquired KannaLife Sciences, Inc. On December 31, 2012, the Company acquired certain assets of PhytoSPHERE Systems, LLC (PhytoSPHERE). It also secured the license to the name PhytoSPHERE and PhytoSPHERE Systems for use in the development and commercialization of hemp-based products.

The Company focuses to develop applicable raw ingredients, and provide raw ingredients for the production and development of multiple existing and developing product applications. Its focus is to produce, market and distribute hemp-based consumer products, as well as acquire existing businesses involved in the industrial hemp industries.

Advisors' Opinion:

[By John Udovich]
The Marijuana Index is Really Getting Stoned. The Marijuana Index, which is the first and only registered equity tracking index for marijuana stocks, cannabis stocks and hemp stocks,�experienced significant volume and price fluctuations throughout the month of February when is started the month at the $25 level only to close the month at $56.21 for a 125% gain as some marijuana stocks experienced all time highs. Notable gainers included Abattis Bioceuticals (OTCMKTS: ATTBF)�being up 194%, Advanced Cannabis Solutions (OTCQB: CANN) being up 132% and CannaVest (OTCMKTS: CANV) being up 116%. You can see all of the�Marijuana Index�� advancers and decliners at http://www.marijuanaindex.org.

Thursday, March 27, 2014

Alaska Air: Let's Make a Deal?

Early indications point to more companies playing "Let's make a deal" in 2014; in fact, dollar volume of takeover deals in the US hit $153 billion for January, more than three times the level in 2012, suggests Richard Moroney, editor of Dow Theory Forecasts.

An increase in deal making this year begs the question—what companies will have the urge to merge?

One metric used to ferret out stocks ripe for takeover is the enterprise ratio, or a company's enterprise value (stock-market value plus debt minus cash) divided by EBITDA (earnings before interest, taxes, depreciation, and amortization).

Analysts often use enterprise value as a proxy for a company's takeover value, since enterprise value takes into account both debt and equity.

The lower the enterprise ratio, the more attractive a company appears to a potential acquirer. Our Quadrix stock-rating system calculates the enterprise ratio for more than 4,600 stocks.

We do not advocate buying a stock simply because of takeover potential; we would only consider stocks that also earn Overall scores in the top quintile, boasting attractive fundamentals in addition to their takeover potential.

The airline sector has had its share of consolidation, which makes Alaska Air (ALK) an interesting takeover play.

The stock's Overall Quadrix score of 99 gives it plenty of appeal beyond its takeover possibilities. The stock has gained more than 16% so far in 2014, far outpacing the broad market.

Per-share profits should rise at least 21% in 2014. Alaska Air trades at 13 times the consensus 2014 earnings of $6.55 per share, 11% below the industry median. The stock is rated Buy.

Subscribe to Dow Theory Forecasts here…

Assume a Frictionless Market

I think it's important to remind my readers of a basic premise when I discuss various option strategies. I assume a frictionless market. What do I mean by that?

* I take no account of commissions. I have no idea what your transaction costs are.

* I assume liquidity. That means that I assume equal ease of entry into a position as well as exit from a position. Oh, and by the way, ease of exit is far more important than ease of entry. I assume a narrow bid/offer spread as well.

* I assume full execution of all orders. Meaning that I do not account for partial fills or slippage (being filled at a different price than intended). Don't forget, to avoid this I always counsel using limit orders and never market orders.

* I do not factor in your cost of money. By that I mean that I assume you may borrow and lend money at the same rate.

* I take no account of tax consequences. Obviously, I have no way of knowing your tax bracket and taxation is very far from my area of expertise in any case.

Of course, in real life the markets are anything but frictionless. None of this makes the strategies you read less illustrative but honesty compels me to remind everyone of my assumptions.

...

The following article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.

Posted-In: Markets Trading Ideas

Originally posted here...

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Wednesday, March 26, 2014

#Premarket Prep Technical Update - Sugar Futures Sharply Higher

Sugar futures are trading higher by $0.39 at $17.36 in Wednesday's session. After finding resistance at the $17.00 for three days in a row, Sugar cleared that level off the open and rallied to $17.53. This is the highest level for Sugar since it peaked at $17.71 on March 14.

Posted-In: Commodities Technicals Options Markets Trading Ideas

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Tuesday, March 25, 2014

Disney's Numerous Future Potential Growth Catalysts

Source: Disney.com.

Disney (NYSE: DIS ) recently announced a lot of news at once. This news includes a third installment to the Cars franchise, a second installment to The Incredibles franchise, and new information about Star Wars: Episode VII. Disney acquired Lucasfilm for $4 billion back in 2012, giving it the rights to the Star Wars franchise.

Future installments
Cars 3 and The Incredibles 2 are both set to be released after 2015. In order to determine the potential for these two films, we must look at past results.

The original Cars had a production budget of $120 million. It grossed $244 million at the domestic box office and $462 million at the worldwide box office.

The sequel, Cars 2, didn't perform as well at the domestic box office, but it performed better than the original at the worldwide box office. This likely stemmed from the movie taking place overseas. This seemed to be a strategic move by Disney, but domestic moviegoers felt let down. Cars 2 had a production budget of $200 million. It grossed $191 million at the domestic box office and $560 million at the worldwide box office. Looking ahead, it will be interesting to see if Disney goes for the domestic or international moviegoer.

The Incredibles had a production budget of just $92 million. It went on to gross $261 million at the domestic box office and $631 million at the worldwide box office.

Then there's Star Wars.

Star Wars news
Disney hasn't given much away, but there are some clues. These clues include that some very familiar faces will be in Star Wars: Episode VII and that there will be a trio of new young leads. The only character that we know is certainly returning is R2-D2.

We also know that JJ Abrams is the director, that John Williams is still the composer, and that Disney's open auditions called for a street smart orphan girl in her late teens as well as a smart and capable male in his late teens or early 20s. And according to The Hollywood Reporter, Adam Driver will play the villain.

Disney's approach of dropping small hints every once in a while is brilliant. In marketing, it has been proven that this is an effective approach, as it heightens consumer excitement.

Other reasons to consider Disney
In addition to the above potential growth catalysts, which should further improve brand recognition, Disney owns ABC, ESPN, and all Disney channels; it's a retailer; and it's a theme park operator. This diversification is what makes Disney so attractive to many investors. If one segment falters, another sector often picks up the slack. Below is a breakdown of revenue per segment for fiscal-year 2013:

Fiscal Year 2013

Revenue

Media Networks	$20.36 Billion
Parks and Resorts	$14.09 Billion
Studio Entertainment	$5.98 Billion
Consumer Products	$3.56 Billion
Interactive	$1.06 Billion

Source: Statista.com

Disney's future potential with Cars, The Incredibles, and Star Wars franchises can lead to revenue gains in each segment. In addition to aforementioned growth potential areas, these brands can be leveraged to the television market, implemented in theme parks, and be made into video games. Therefore, these brands go well beyond the box office.

Of course, Star Wars: Episode VII should be a massive success. The movie wouldn't even have to impress moviegoers to sell tickets. The brand is that strong. And in addition to future installments for the Cars and The Incredibles franchises, Frozen will have a sequel and a show on Broadway, and Shanghai Disney Resort is set to open on Dec. 31, 2015. Shanghai is a wealthy and highly populated city with more than 14 million people -- a very good combination for Disney.

Disney also stacks up well against entertainment giants Time Warner (NYSE: TWX ) and Twenty-First Century Fox (NASDAQ: FOXA ) . First, consider top-line performances over the past year:

DIS Revenue (TTM) Chart

DIS Revenue (TTM) data by YCharts.

Twenty-First Century Fox has grown its top line the fastest, and that should be recognized. However, Twenty-First Century Fox doesn't have anything close to what Disney has in future growth catalysts.

Twenty-First Century Fox did deliver a 15% increase in revenue in the second quarter, primarily thanks to the inclusion of Sky Deutschland revenue and a 14% boost in affiliate revenue growth in its Cable Networking Program segment.

In regards to filmed entertainment and future brand potential, The Secret Life of Walter Mitty and Walking with Dinosaurs don't compare to what Disney has to offer.

Furthermore, while Twenty-First Century Fox is impressive, it doesn't compare to Disney in merchandising potential. With all the aforementioned movie brands, Disney will have extraordinary merchandising opportunities, especially with Star Wars.

As far as Time Warner goes, it has been growing the slowest, but it does offer a 1.9% dividend yield, higher than Disney and Twenty-First Century Fox at 1.1% and 0.8%, respectively. This might entice dividend investors, but Disney is very capable of increasing capital returns to shareholders in the future.

Time Warner's fourth-quarter revenue improved 5% to $8.6 billion in the fourth quarter. TBS (cables #1 network in primetime among adults 18-49), TNT (#2 network in total day among adults 25-54), and HBO (most Primetime Emmy Awards of any network) all performed well. Warner Bros. delivered hits Gravity and Her.

Looking ahead, The Lego Movie may inspire a sequel, and 300: Rise of an Empire continues a successful brand. However, while everything is well at Time Warner, its brands can't be leveraged to the same extent that Disney can leverage its brands.

The Foolish takeaway
Disney has several potential future growth catalysts, partially in thanks to the ability to leverage some of these brands across all segments: added installments to Cars and The Incredibles, a sequel and Broadway show for Frozen, Star Wars: Episode VII, and Shanghai Disney Resort. While nothing is a guarantee, it would be difficult to find another company that is so fiscally sound and "mature" while also offering significant future growth potential. However, please do your own research prior to making any investment decisions.

Disney is very impressive, but it's not Motley Fool's top pick for the year....
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Wal-Mart's new tool gives competitors prices

NEW YORK (AP) — The "Every Day Low Price" king is trying to shake up the world of pricing once again.

Wal-Mart told The Associated Press that it has rolled out an online tool that allows shoppers to compare its prices on 80,000 food and household products to those of its competitors. The world's largest retailer began offering the feature that's called "Savings Catcher" on its website late last month in seven big markets that include Dallas, San Diego and Atlanta.

The move by Wal-Mart, which has a long history of undercutting competitors, could change the way people shop and how other retailers price their merchandise. After all, Americans already increasingly are searching for the lowest prices on their tablets and smartphones while in checkout aisles.

Shoppers do this so often that big retailers that include behemoths like Target and Best Buy have started offering to match the lower prices of rivals — but only if shoppers do the research on their own. The idea behind Wal-Mart's online feature, on the other hand, is to do the legwork for customers.

The tool isn't revolutionary. For instance, Citibank launched a program two years ago that sends Citi credit card customers a check for the difference if it finds a lower price from an online retailer. But Wal-Mart is the first traditional retailer to offer such a program, and if it's successful, others may follow.

Duncan MacNaughton, chief merchandising and marketing officer for Wal-Mart Store's U.S. discount division told The Associated Press in an exclusive interview that shoppers are looking for "technological answers to saving them money and time."

Wal-Mart, which declined to comment on when the program would be rolled out nationwide, said it's hoping the online tool will build more confidence among Wal-Mart shoppers that it has the best price whenever they shop in stores.

The company built its business on offering the lowest prices on staples such as milk, bread and laundry detergent. But Wal-Mart's "every d! ay low price" model is under attack from online king Amazon and other competitors that sometimes offer items cheaper. On top of that, the retailer's primarily lower-income customers continue to cut back on spending during the economic recovery.

As a result, Wal-Mart's U.S. discount division recorded its fourth consecutive quarter of declines in revenue at stores opened at least a year, a critical yardstick for measuring a retailer's health. The discounter also has seen a decline in the number of shoppers going to its stores.

Wal-Mart has had a price matching strategy for several years. In 2011, it simplified the policy by making sure workers have the advertised prices of competitors on hand at the register, eliminating the need for shoppers to bring in an ad from a rival store.

Wal-Mart said the idea for Savings Catcher was born last year during a focus group. The idea instantly resonated with the group, the retailer said, and by last summer, Wal-Mart was testing it in four markets on an invitation-only basis. In late February, the company began rolling it out to the seven markets that also include Charlotte, N.C., Huntsville, Ala., Minneapolis, and Lexington, Ky.

Here's how the tool works: A customer has to set up an account on Wal-Mart.com, then logs onto the Savings Catcher page on www.walmart.com/ and type in the number on their receipt. Shoppers need to register the number within seven days of purchase. Savings Catcher compares prices of every item on the receipt to a database of advertised prices of competitors. The database is provided by an undisclosed third party that analyzes retail ads.

The prices at Wal-Mart stores are matched to competitive stores based on geographic location, but not online retailers. For example, in Atlanta, Wal-Mart compares prices to nearly 20 rivals, including Aldi, CVS, Food Lion, Target and Dollar General. The tool doesn't include purchases on store label brands or those made online. The tool also doesn't apply to general merchandise lik! e clothin! g or electronic gadgets, but does include groceries and things like detergent.

The savings are issued on a Wal-Mart online gift card and the customers can accumulate savings or use the credit immediately. Shoppers can use the credit in stores or online by printing out the gift card receipt.

Wal-Mart's MacNaughton said preliminary data shows that in the markets that have the Savings Catcher, shoppers are putting more items in their basket and the checkout lines are faster because people don't feel like they have to pull out their smartphones or circular ads to check prices.

Anne Jurchak was part of Wal-Mart's focus group. She said she's been getting back $5 to $7 on her weekly trips to Wal-Mart in which she typically spends $200 to $250. Jurchak has used those savings to buy holiday stocking stuffers and a case for her e-reader.

As a part-time marriage counselor and mother of two sons, Jurchak, 41, a said she's never had time to take advantage of price matching.

"They're doing the work for me," said Jurchak, who lives in Belmont, N.C. "The only thing they're not doing is putting the groceries away."

Follow Anne D'Innocenzio at —http://www.Twitter.com/adinnocenzio

Monday, March 24, 2014

3 Homebuilders Building on Solid Foundations

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Despite a good earnings report by Lennar (LEN) last week, homebuilders remain cautious about the housing market.

for sale house 3 Homebuilders Building on Solid Foundations It seems there's more to that caution than just a chilly winter. Homebuilders are having trouble finding buildable lots and skilled workers. Many have tempered their sales expectations for the next six months.

Investors, take notice.

The housing market isn't firing on all cylinders. Any investments at the moment should be made with care. Although there are better industries to be investing at the moment — banking and casinos are two names that come to mind — these three homebuilders are worth serious consideration.

Homebuilders to Buy: KB Home (KBH)

kbh 3 Homebuilders Building on Solid Foundations KB Home (KBH) delivered its first Q1 profit since 2007 last week on the back of strong price increases across all four of its regions. Chief among the increases was its West Coast region which saw the average sale price increase 30% year-over-year to $525,000. The bad news is that only 346 homes were delivered on the West Coast in Q1 compared to 509 a year earlier.

That decline would be killer if you didn't look more closely at its backlog. The West Coast's average selling price on the 580 homes still to be built is $567,000 — $159,000 higher than the backlog from a year ago. The West Coast is generating more revenue from less homes. That's a problem homebuilders can live with. KBH stock will benefit down the line should the company move all of its backlog through the pipeline.

In 2013, KB Home delivered its first annual profit since 2006. Back then, its book value was $3 billion, more than double today's market cap and six times its current book value. Those were clearly better days. However, its Q1 2014 adjusted housing gross margin of 17.8% — 260 basis points higher than Q1 2013 — is a sure sign its business is improving on the West Coast where it generates more than 40% of its overall revenue.

As California goes, so goes KBH stock. Should KBH's adjusted housing gross margin hit 20% in 2014 along with a 12% selling, general and administrative margin, KBH's bottom line profit should be greater than $100 million come the end of November.

If so, you could value KBH stock at $2 billion or more. With KBH stock down 19% over the past 52 weeks, I like its chances of reversing that trend.

Homebuilders to Buy: Lennar (LEN)

len 3 Homebuilders Building on Solid Foundations You usually can't go wrong betting on the biggest operators in any industry. New home development is no different. If its Q1 results are any indication, Miami-based Lennar (LEN) is a good bet when it comes to housing.

Although there are indications things might not be so cheery in housing right now, CEO Steve Miller believes the industry is heading in the right direction, stating:

"Although it is still too early to predict the strength of the spring selling season, we are optimistic that the housing market is continuing to recover, and that the fundamental drivers of that recovery remain intact. We believe that the housing market is still in the early stages of recovery."

That's good news for LEN stock and all the other homebuilders.

Lennar's Q1 earnings before interest and taxes increased 65% to $165 million on $1.36 billion in revenue. That's an EBIT margin of 12.1%, a full two percentage points higher than in the same period a year earlier. Drivers of this margin expansion include an 18% increase in average sales price combined with increased deliveries in five of its six operating regions.

Its western region (California, Nevada) experienced large increases in both the number of homes delivered and the average price paid for those homes. The West contributed 27% of the 3,609 homes delivered by Lennar in Q1, and while the improvement in California is impressive, the East is where its future revenue generation lies, with 39% of its backlog in seven states up and down the Atlantic. With all the excitement on both coasts, investors can expect Lennar to generate more than $1 billion in operating income in fiscal 2014, something it hasn't done since 2005.

Whatever happens in the next three quarters, you can rest assured that Lennar is going to be one of the main beneficiaries of any spring thaw. LEN stock, like most homebuilders, hasn't done well in the past year. Given its strong earnings, I don't see any reason why that can't change as we move into the summer selling season.

Homebuilders to Buy: PulteGroup (PHM)

phm 3 Homebuilders Building on Solid Foundations KeyBanc analyst Kenneth Zener downgraded LEN stock from buy to hold in early March. At the same time, the analyst upgraded PulteGroup (PHM) from hold to buy citing its measured growth combined with an attractive valuation as reasons for buying PHM stock.

Zener believes "defensive" investors will find PulteGroup's focus on "profitability over volume" very attractive at a time when gains in home prices are likely to slow considerably. For those not as confident about the near-term future of homebuilders, owning PHM stock could be the safest play at the moment.

Nothing in PHM’s 10-K jumps out at you when it comes to top-line revenue. Its average selling price increased 11% in 2013 to $305,000 while the number of closings increased by 1,261 units or 7.6%. The combination of these two numbers produced an increase in home sale revenue of $872 million or 19%.

While that home sale revenue is solid, its 430 basis point increase in adjusted home sale gross margin is what made the difference in 2013. In fact, its 23.2% home sale gross margin in the final quarter of 2013 was the highest it has been on a quarterly basis since 2005. This achievement allowed it to generate a pre-tax profit of $528 million in 2013, 187% higher than in 2012. As a result, it retired $461 million in debt and sits with a debt-to-capitalization rate of 31% compared to 53% at the end of 2012.

PulteGroup, as Zener describes, is a good bet if you're not sure that 2014 will be a banner year for new home construction. Of the big homebuilders, PHM stock is the most conservatively financed of the bunch while its valuation (EV/EBITDA) is also the least expensive. For these two reasons, I would recommend PHM stock over both Lennar and KB Home.

As of this writing, Will Ashworth did not own a position in any of the aforementioned securities.