Why Chipotle Can't Raise Prices

Chipotle (NYSE: CMG  ) has been talking about a potential price hike for a while, but it hasn't touched menu prices in over a year. Meanwhile, competitors like Panera Bread (NASDAQ: PNRA  ) and McDonald's (NYSE: MCD  )  have boosted prices, giving a lift to both sales and profits. In the video below, Fool contributor Demitrios Kalogeropoulos discusses what's kept Chipotle from doing the same, and what investors can expect from the company in the quarters ahead.

Chipotle's stock has been on an absolute tear since the company went public in 2006. Unfortunately, 2012 hasn't been kind to Chipotle's stock, as investors question whether its growth has come to an end. Fool analyst Jason Moser's premium research report analyzes the burrito maker's situation and answers the question investors are asking: Can Chipotle still grow? If you own or are considering owning shares in Chipotle, you'll want to click here now and get started! 

The World's Best Smartphone Camera -- From Sony?

A new Android phone coming from Sony (NYSE: SNE  ) is rumored to have a camera capable of capturing 4K Ultra HD video. If you think your HD television picture looks sharp, then hold on to your eyeballs. Ultra HD has four times the resolution of HD.

That's 3840 x 2160 pixels, compared with 1920 x 1080 pixels. Go ahead; do the math.

But if you don't have an Ultra HD TV -- and it's much more likely you would have a 3D-TV than a 4K TV, given much higher set prices and limited 4K content -- would a smartphone with a 4K video camera be incentive enough to make the switch to a Sony phone from a Samsung, Apple (NASDAQ: AAPL  ) , or HTC handset?

Or is that putting the cart before the horse? Selling more smartphones might not be Sony's real agenda. Since Sony also makes Ultra HD TVs, one might think the rationale behind a super camera enabled smartphone could be to boost its 4K television sales.

If so, wouldn't Samsung be getting ready with its own 4K-camera phone to promote its line of Ultra HD TVs?

With the current high prices for these state-of-the-art Ultra HD televisions, Sony and Samsung would need all the promotional help they could get. The cheapest is Sony's 55-inch model, which goes for $5,000. And one could buy a Toyota Prius for the price of its 84" model: $25,000.

But don't get off the floor just yet: Samsung's 85-inch Ultra HD set retails for $40,000. No kidding.

There's one more very important reason for Sony -- and Samsung, too -- to try to get ahead of the Ultra HD curve with a 4K smartphone camera. The UHD standards are not yet set in stone, and the company that can garner the most UHD sales could influence the future definitive 4K standard.

That means getting as many consumers as possible hooked on a company's 4K standard as early as possible. When it comes to setting technical standards, it's often the most popular standard that wins out, not necessarily the one that is technically superior.

Remember, Betamax vs, VHS? Sony's Betamax format supposedly yielded a better picture, yet because of lower prices on VHS records and the ability to record longer programs, the VHS standard was triumphant.

With the success of such 3-D movies as Avatar, the TV makers could be excused for thinking 3-D TV would be the next big thing. That hasn't happened, and Samsung has admitted that 3-D TV sales in 2012 were a big disappointment.

Along with the higher cost for 3-D TVs came poorer picture quality and the necessity for special viewing glasses. The format may not just disappear, but it will remain only a novelty.

What has proved to be a winner for TV makers -- though not for cable TV providers -- are so-called "smart" TVs, those that can be connected to the Internet to stream video. And streaming will likely become the most viable delivery system for UHD programming.

Neil Hunt, Netflix's (NASDAQ: NFLX  ) chief product officer, told The Verge in an interview last March that Netflix will start streaming 4K content "within a year or two."

I think Hunt is very serious about this. Netflix shot its very first original production, House of Cards, in 4K, at a cost of over $100 million. The Netflix revival of Arrested Development was also shot in 4K.

Meanwhile, returning to Sony's 4K future: At the beginning of the year, it said it would have a U.S. launch of the first consumer oriented 4K video distribution service sometime in the summer.

But Sony and Netflix and all the other would be 4K distributors have to acknowledge the elephant in the room. The amount of information that Ultra HD requires to be pushed through Internet service providers' pipes may prove too much for them to handle, at least in the near term. How does a 100GB-plus download for a typical movie sound?

So, in the meantime, getting consumers to shoot their own 4K productions on a Sony 4K camera equipped smartphone may be the company's best -- if not only -- selling point for their Ultra HD TV sets. At least for now.

There is no question that the television landscape is changing quickly, and not just for the television set makers. Streaming content from entrants such as Netflix and Amazon.com have disrupted traditional networks and the cable operators. The Motley Fool's new free report "Who Will Own the Future of Television?" details the risks and opportunities in TV. Click here to read the full report!

Intelsat Sets Preferred Dividend

Satellite services provider Intelsat (NYSE: I  ) announced yesterday its second-quarter dividend of $0.799 per share on its 5.75% Series A mandatory convertible junior non-voting preferred stock, which trades on the NYSE under the symbol I.PRA.

Each Series A preferred share will automatically convert on May 1, 2016, into between 2.2676 and 2.7778 common shares. The number of shares issuable on conversion will be determined based on the average of the closing prices per share over the 40-trading-day period ending on the third trading day prior to the mandatory conversion date, the company said. They may be converted at any time before then at the minimum conversion rate of 2.2676 shares per Series A preferred share.

The board of directors said the dividend is payable on Aug. 1 to the holders of record at the close of business on July 15. The payout reflects preferred dividends accrued during the 100-day period starting on the date of the satellite service provider's initial offering of preferred shares, or April 23, and ending July 31.

Intelsat does not pay a dividend on its common stock.

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Pentagon Watch: Where Did Your Tax Dollars Go This Week?

The U.S. military has a reputation as a somewhat secretive organization. But in one respect at least, the Pentagon ranks among our most transparent government agencies. Every day of the week, rain or shine, the Department of Defense tells U.S. taxpayers what contracts it's issued, to whom, and for how much -- all right out in the open on its website.

DoD is budgeted to spend about $6.2 billion a week on military hardware, infrastructure projects, and supplies in fiscal 2013. (A further $5.6 billion a week goes to pay the salaries and benefits of U.S. servicemen and servicewomen). But as you may recall, the Pentagon went a wee bit over budget last week -- and spent a whopping $9.8 billion.

Like any other consumer shocked to see the balance on a credit card statement, the Pentagon sharply curtailed its spending. From Monday through Friday, DoD spent only $3.5 billion. Even accounting for a short break from shopping to enjoy the fireworks Thursday, that works out to a spending rate of just $875 million per day, or 70% of what you'd ordinarily expect.

So ... what did $0.70 on the budgeted defense-spending dollar buy us this week?

Ahh ... ahh ... achoo!
For one thing, it bought a whole lot of flu drugs to treat flu bugs. On Monday, the DoD awarded twin contracts for flu vaccines to a pair of foreign Big Pharma producers. France's Sanofi (NYSE: SNY  ) was awarded a $14 million contract for flu vaccines. Switzerland's Novartis (NYSE: NVS  ) got a similar $14 million order.

Chief of Naval Operations Adm. Jonathan Greenert receives his annual flu vaccine at the Pentagon. Source: Wikimedia Commons.

Imports and exports
Helping to balance out the U.S. balance of payments, though, was Boeing (NYSE: BA  ) , which inked contracts to export far more dollars' worth of military hardware than we're importing from Europe. In a trio of contract wins, Boeing won orders to "sustain" Apache attack helicopters operated by the Netherlands, to sell Apaches to the Saudi military, and in the largest of its contract wins, to "support" the Royal Saudi Land Force Aviation Command, which operates a fleet of -- you guessed it -- AH-64E Apache attack helicopters. In total, these three contracts should be worth upwards of $132 million to Boeing.

AH-64 Apache. Source: Wikimedia Commons.

$132 million? Chicken feed!
If that sounds like a lot of money -- it's not. At least not relative to the wins that Boeing archrival Lockheed Martin (NYSE: LMT  ) booked last week. On Monday, Lockheed scored a $295 million DoD contract to continue work on upgrading the Aegis air defense system to a configuration capable of shooting down ballistic missiles.

One day later, Lockheed won four more contracts in quick succession, headlined by a big $308 million award to supply an unspecified number of "tactical missiles" to the government of Kuwait. DoD kept mum on the specific sort of missiles being sold to the Kuwaitis. But further digging reveals that the contract being modified to increase Kuwait's purchase was actually a sale of Patriot Advanced Capability-3, or PAC-3, anti-aircraft missiles that we originally reported on back in January. DoD confirms that the cumulative value of this contract now exceeds $1.06 billion in revenues for Lockheed.

Opportunities on the horizon
So far, we've talked mainly about defense contracting news that's already been reported on our site. But what about opportunities for investors that are not yet widely known?

Actually, for investors in Raytheon (NYSE: RTN  ) stock, there may be a couple of those, too. If you think back to January's PAC-3 contract announcement, for example, Lockheed's big Patriot win was followed in quick succession by a series of three Patriot contract wins for Raytheon. All three were classified as "foreign military sales," and while the destination of the sales was not stated in any of them, I think we can take a wild guess that sand and sun were involved.

Combined, those three sales added up to $117.5 million in new revenues for owners of Raytheon stock. Don't be surprised if there are more contract wins in store for Raytheon this time, too.

A second bit of good news for owners of Raytheon stock could soon arrive from Down Under. In a little-noticed news item, we learned last week that the U.S. Defense Security Cooperation Agency has notified Congress of a request by Australia to buy 100 MK 54 torpedoes, with which to arm its new force of MH-60R Sikorsky Seahawk helicopters, and Boeing Poseidon P-8A subhunting airplanes. No contract has yet been signed, and it hasn't been officially announced yet. No one knows about it -- except that now, you do.

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

 

This 'Baby Boomer' Stock Is A Dividend Machine

Since the Federal Reserve's recent announcements regarding the "tapering" of its quantitative easing programs, the real estate investment trust (REIT) market has been in a tailspin.

The Dow Jones Equity REIT Index has fallen sharply since the middle of May, as investors began to sell on fear that the REIT market -- where profits are often tied closely to interest rates -- is in for hard days ahead.

But investors should keep in mind that not all REITs are created equal.

While some mortgage REITs such as Annaly Capital (NYSE: NLY) or American Capital Agency (NYSE: AGNC) depend on the difference between short-term rates and the price they can get for holding long-term debt (the yield curve), others make money by buying and leasing physical property.

 

This second type of REIT tends to be more stable, as the leasing of physical assets is much less volatile than the market for complex financial instruments.

So while the REIT market as a whole has declined in the wake of the Fed's recent announcements, REITs that invest in physical property have in some cases suffered price drops that are based on mostly on fear and have little to do with the value of the underlying business.

The company I'm going to tell you about today makes money by investing in health care real estate. Regular SteetAuthority readers are probably already familiar with the idea that the growing demand for health care due to the aging baby boomer generation represents a stellar investment opportunity.

Elliot Gue, the expert behind Top 10 Stocks (and a recent guest on CNBC) recently recommended another health care REIT in his May issue. While I can't reveal the name of his pick out of fairness to his subscribers, I think it's worth reprinting some of the demographic data he mentioned concerning health care REITs in general:

The U.S. Census Bureau estimates that the population of Americans older than 65 will increase by 37% (3.2% annually) during the next decade and that the number of U.S. residents over 75 years of age will surge by 46% (3.8% annually) in the subsequent decade.

These favorable demographic trends should fuel demand for space in independent-living facilities, followed by assisted-living and skilled-nursing facilities that offer increasing levels of care. While per-capita health care spending for Americans between 65 and 75 years old is elevated relative to younger population segments, this metric soars by roughly 70% after the age of 75. The aging U.S. population should fuel consumption of health care products and services.

Meanwhile, baby boomers' investment strategies are poised to continue evolving from a focus on accruing assets to turning accumulated savings into a dependable, lifelong income stream -- a potential boon for shares of health care REITs and other dividend-paying defensive stocks.

After reviewing a number of options in this sector, one in particular caught my eye. This company boasts a "fortress" balance sheet, a long history of rising dividends, and one of the best management teams in the business.

HCP Inc. (NYSE: HCP) acquires and manages health care real estate and provides financing to health care providers.

The company currently yields nearly 5% and has raised its dividend every year for the past decade. There is no reason to suspect the future will be any different, as HCP holds little debt and has been increasing its free cash flow by leaps and bounds. 

From 2010 to 2011, the company nearly doubled free cash flow, from $276 million in 2010 to $526 million in 2011. In 2012, free cash flow was up to $840 million, an increase of 63%.

The company's debt-to-equity ratio is 0.8, slightly lower than the industry average of 0.9. Yet even after a recent $1.7 billion acquisition, the company still has plenty of cash left over to pay (and keep growing) dividends. 

One of the key reasons for HCP's success has been its focus on triple-net leases. Under this structure, tenants are responsible for paying all property operating expenses. These include real estate taxes, utilities and the cost of property upkeep. In addition, the company has built-in protection from inflation, due to rent payments that generally keep pace with or exceed the inflation rate. 

In its recent $1.7 billion deal, HCP added 129 properties to its senior housing community portfolio. These properties offer initial lease terms of 14 to 16 years, with the option to extend leases at higher rents for up to 30 to 35 years.

Long-term, steady-income generating deals like these are HCP's specialty. Disciplined acquisition, along with a consistent ability to create shareholder value, makes HCP's management team hard to beat.

Since CEO Jay Flaherty took the helm in 2002, HCP has returned an average of 16% a year to shareholders through dividends and capital gains. That compares with an annual average gain of 6% in the S&P 500 in that time. 

Best of all, after the recent market pullback, shares have been selling at a discount. HCP shares dropped 23% between May 21 and June 20.

Yet after poring over the latest company transcripts and financial statements, I haven't been able to find any red flags that would justify such a steep decline. Nor could I find sufficient evidence to support the idea that, relative to its peers, HCP was simply an overvalued stock that was due for a correction.

HCP is thriving and should continue to do so for years to come. Owning and renting properties in the health care sector is one of the safest and most stable business models in the REIT universe. 

When quality companies like HCP experience irrational price drops, it's a good time for savvy investors to shop for bargains. 

Risks to Consider: Changes in governmental health care regulation are always a potential concern in the health care sector. Should programs such as Medicare and Medicaid undergo significant revisions, it could have a negative impact on tenants' ability to pay rent or to afford rent increases.

Action to Take --> HCP is a great investment at today's prices for long-term, dividend-oriented investors.

P.S. -- Stocks like HCP -- which has increased its dividend every year for the past decade and currently yields 5% -- are perfect for our "Dividend Trifecta" strategy. Go here to learn more...

Top Undervalued Stocks To Watch Right Now

Warren Buffett has been nothing short of a master dealmaker for the better part of five decades now. Through a disciplined approach that stresses the understanding of a company's fundamental business model, as well as buying and holding businesses, not stocks, over a very long period of time, Buffett has played Wall Street like a violin.

Dating back to 1970, Buffett's holding company, Berkshire Hathaway (NYSE: BRK-A  ) (NYSE: BRK-B  ) , has not once in 43 years had its five-year average gain in book value per share underperform the average five-year performance of the S&P 500. I can't even begin to describe how phenomenal that is, given the multiple recessions we've endured as a country.

It might just be safe to say that Warren Buffett knows a thing or two about investing and buying undervalued companies. Some of his latest purchases include railroad BNSF, which gives Berkshire exposure to consumer-goods and petroleum shipping, Heinz (through a partnered buyout with 3G Capital), which adds a strong consumer-condiments brand to Buffett's portfolio, and NV Energy, a Las Vegas energy provider that Buffett's energy subsidiary MidAmerican will probably use to expand its alternative-energy platform.

Top Undervalued Stocks To Watch Right Now: Tupperware Corporation(TUP)

Tupperware Brands Corporation operates as a direct seller of various products across a range of brands and categories through an independent sales force. The company engages in the manufacture and sale of kitchen and home products, and beauty and personal care products. It offers preparation, storage, and serving solutions for the kitchen and home, as well as kitchen cookware and tools, children?s educational toys, microwave products, and gifts under the Tupperware brand name primarily in Europe, Africa, the Middle East, the Asia Pacific, and North America. The company provides beauty and personal care products, which include skin care products, cosmetics, bath and body care, toiletries, fragrances, nutritional products, apparel, and related products principally in Mexico, South Africa, the Philippines, Australia, and Uruguay. It offers beauty and personal care products under the Armand Dupree, Avroy Shlain, BeautiControl, Fuller, NaturCare, Nutrimetics, Nuvo, and Swissgar de brand names. The company sells its Tupperware products directly to distributors, directors, managers, and dealers; and beauty products primarily through consultants and directors. As of December 26, 2009, the Tupperware distribution system had approximately 1,800 distributors, 61,300 managers, and 1.3 million dealers; and the sales force representing the Beauty businesses approximately 1.1 million. The company was formerly known as Tupperware Corporation and changed its name to Tupperware Brands Corporation in December 2005. The company was founded in 1996 and is headquartered in Orlando, Florida.

Advisors' Opinion:

• [By Sam Collins]

  Household name Tupperware Brands Corp. (NYSE:TUP) is a global direct seller of products with multiple brands through an independent sales force of 2.4 million people. Its product line focuses on kitchen storage and serving solutions, as well as personal-care products. Over 60% of sales in 2011 are expected to come from Europe and Asia, and the stock has appeal as an emerging markets story.

  S&P estimates that 2011 earnings will increase to $4.54 versus $3.53 in 2010, and it increased its rating to a “five-star strong buy” with a recently revised 12-month target of $81, up from $73. The 2005 purchase of Sara Lee’s (NYSE:SLE) direct-sales business, which has a high growth rate, should be a long-term benefit. TUP’s annual dividend yield is 1.92%.

  Technically TUP had a pullback following a new high at over $70 and is currently oversold. Buy TUP at the current market price with a trading target of $70, but longer term a much higher target will likely be attained.

Top Undervalued Stocks To Watch Right Now: Dollar Tree Inc.(DLTR)

Dollar Tree, Inc. operates discount variety stores in the United States and Canada. Its stores offer merchandise primarily at the fixed price of $1.00. The company operates its stores under the names of Dollar Tree, Deal$, Dollar Tree Deal$, Dollar Giant, and Dollar Bills. Its stores offer consumable merchandise, including candy and food, and health and beauty care, as well as household consumables, such as paper, plastics, household chemicals, in select stores, and frozen and refrigerated food; variety merchandise, which includes toys, durable housewares, gifts, party goods, greeting cards, softlines, and other items; and seasonal goods, such as Easter, Halloween, and Christmas merchandise. As of April 30, 2011, it operated 4,089 stores in 48 states and the District of Columbia, as well as 88 stores in Canada. The company was founded in 1986 and is based in Chesapeake, Virginia.

Advisors' Opinion:

• [By Sam Collins]

  Dollar Tree (NASDAQ:DLTR) is a leading operator of discount variety stores. The stock has hugged its 50-day moving average since mid-February. But a recent minor revision of earnings for this year by several analysts and the recent market sell-off have resulted in a fall from its high of the year at over $70 to under $66. However, Goldman Sachs (NYSE:GS) increased its price target to $73 from $69.

  Technically DLTR is oversold, according to MACD. A break below its 50-day moving average could result in a pullback to $64, but positions could be taken at the current market price. The trading target for DLTR is $72.

Hot Penny Stocks To Invest In Right Now: Caterpillar Inc.(CAT)

Caterpillar Inc. manufactures and sells construction and mining equipment, diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives worldwide. It operates through three lines of businesses: Machinery, Engines, and Financial Products. The Machinery business offers construction, mining, and forestry machinery, including track and wheel tractors, track and wheel loaders, pipelayers, motor graders, wheel tractor-scrapers, track and wheel excavators, backhoe loaders, log skidders, log loaders, off-highway trucks, articulated trucks, paving products, skid steer loaders, underground mining equipment, tunnel boring equipment, and related parts. It also manufactures diesel-electric locomotives; and manufactures and services rail-related products and logistics services for other companies. The Engines business provides diesel, heavy fuel, and natural gas reciprocating engines for Caterpillar machinery, electric power generation systems, marine, petrol eum, construction, industrial, agricultural, and other applications. It offers industrial turbines and turbine-related services for oil and gas, and power generation applications. This business also remanufactures Caterpillar engines, machines, and engine components; and offers remanufacturing services for other companies. The Financial Products business provides retail and wholesale financing alternatives for Caterpillar machinery and engines, solar gas turbines, and other equipment and marine vessels, as well as offers loans and various forms of insurance to customers and dealers. It also offers financing for vehicles, power generation facilities, and marine vessels. The company markets its products directly, as well as through its distribution centers, dealers, and distributors. It was formerly known as Caterpillar Tractor Co. and changed its name to Caterpillar Inc. in 1986. Caterpillar Inc. was founded in 1925 and is headquartered in Peoria, Illinois.

Advisors' Opinion:

• [By Sam Collins]

  Caterpillar (NYSE:CAT) is the world’s largest producer of construction and mining equipment, diesel and natural gas engines, and industrial gas turbines. The stock has been in a bull market since the market bottomed in March 2009. CAT was one of our Top Stocks to Buy for December because of its position as a major supplier to the third world and China. The company should also be a beneficiary of orders from Japan due to the damage from earthquakes and the tsunami.

  Revenues in 2011 are expected to increase by 36%, according to S&P, and margins are expected to increase, as well. Earnings for 2012 are forecast at $9.10, up from $7.50 this year, and S&P has a target of $142 over the next 12 months.

  Technically CAT has strong support at $95 and currently appears to be oversold, according to Moving Average Convergence/Divergence (MACD). If it is able to hold at the support line, look for a rally to $110 within 30 days. Longer term the stock could trade north of $125.

• [By Jim Cramer,TheStreet]

  Caterpillar (CAT) could be a monster in 2011, especially with the integration of Bucyrus International (BUCY), which I think will turn out to be a fantastic acquisition.

  Current earnings-per-share estimates of about $6 are, I think, way too low. I see this stock going to $120 in the next year. Too gutsy? Ask yourself what happens if the United States comes back as a growth nation? Right now almost all of the growth is overseas.

  Still a fantastic mineral play and a terrific call on world growth.

• [By Roberto Pedone]

  Caterpillar (CAT) is staging a textbook breakout in May. Shares of heavy equipment maker haven't exactly been kind to investors year-to-date; CAT has barely broken even during a time when the broad market has been in a historic rally. But a textbook breakout should change that.

  CAT started forming an inverse head and shoulders pattern back in early April. The inverse head and shoulders is formed by two swing lows that bottom out around the same level (the shoulders), separated by a lower low called the head; the buy signal comes on the breakout above the pattern's "neckline" level, which was just below $86 for CAT. That puts this stock's upside target right around $92.

  Even though CAT has nearly hit its upside target already (the post-breakout buying has been very quick), the longer-term implication for investors is a break of the downtrend that had been haranguing shares this year. Now, with that downtrend broken, CAT should have more room to move higher. I'd just expect some consolidation first.

Top Undervalued Stocks To Watch Right Now: Schlumberger N.V.(SLB)

Schlumberger Limited, together with its subsidiaries, supplies technology, integrated project management, and information solutions to the oil and gas exploration and production industries worldwide. The company?s Oilfield Services segment provides exploration and production services; wireline technology that offers open-hole and cased-hole services; supplies engineering support, directional-drilling, measurement-while-drilling, and logging-while-drilling services; and testing services. This segment also offers well services; supplies well completion services and equipment; artificial lift; data and consulting services; geo services; and information solutions, such as consulting, software, information management system, and IT infrastructure services that support oil and gas industry. Its WesternGeco segment provides reservoir imaging, monitoring, and development services; and operates data processing centers and multiclient seismic library. This segment also offers variou s services include 3D and time-lapse (4D) seismic surveys to multi-component surveys for delineating prospects and reservoir management. The company?s M-I SWACO segment supplies drilling fluid systems to improve drilling performance; fluid systems and specialty tools to optimize wellbore productivity; production technology solutions to maximize production rates; and environmental solutions that manages waste volumes generated in drilling and production operations. Its Smith Oilfield segment designs, manufactures, and markets drill bits and borehole enlargement tools; and supplies drilling tools and services, tubular, completion services, and other related downhole solutions. The company?s Distribution segment markets pipes, valves, and fittings, as well as mill, safety, and other maintenance products. This segment also provides warehouse management, vendor integration, and inventory management services. Schlumberger Limited was founded in 1927 and is based in Houston, Texas.

Advisors' Opinion:

• [By Brian Stoffel]

  This company has been a pick of both Jordan DiPietro and Bryan White. And both analysts have pointed to the company's opportunity for oil exploration abroad -- which is where much of the demand will soon be coming from as well.

  Bryan points out that three-fourths of the company's revenue comes from abroad, with "Brazil, the Middle East, and Africa [as] key regions where activity is expected to be robust and growing."

  Jordan adds, "[Schlumberger] has an important presence in high-growth regions of the world such as Iraq, Mexico, and Russia, and has the competitive advantage to be able to offer full services, from managing entire oil fields to drilling wells."

• [By Dug]

  Schlumberger(SLB) continues to lead the sector, particularly outside the U.S. in the growing markets for vertical drilling. Schlumberger remains my favorite. Another smaller company to look at with growing work in complex procedures is Helmerich & Payne(HP).

• [By Dave Friedman]

  Institutional investors bought 66,328,670 shares and sold 64,611,410 shares, for a net of 1,717,260 shares. This net represents 0.14% of common shares outstanding. The number of shares outstanding is 1,250,000,000. The shares recently traded at $74.84 and the company’s market capitalization is $100,986,600,000.00. About the company: Schlumberger Limited is an oil services company. The Company, through its subsidiaries, provides a wide range of services, including technology, project management and information solutions to the international petroleum industry as well as advanced acquisition and data processing surveys.

3 Stocks That Bucked the Dow's Drop Today

Today was a relatively quietly day for the stock market as sluggish readings on existing home sales poured cold water on general enthusiasm about the state of the U.S. economy. By the end of trading, the Dow Jones Industrials (DJINDICES: ^DJI  ) finished the day down 37 points while broader market measures fell similar amounts on a percentage basis. With the Federal Open Market Committee meeting later this week to discuss monetary policy and with key figures on employment coming out on Friday, investors appear to be in wait-and-see mode with respect to overall stock market moves.

But even with the Dow under pressure, a few stocks managed to post some sizable gains. Caterpillar (NYSE: CAT  ) led the Dow's gainers, rising 1.2% as the company announced that it would execute another $1 billion under an accelerated stock repurchase transaction, working with France's Societe Generale to facilitate the purchase. The transaction marks the second time Caterpillar has used the tactic, with a previously announced $1 billion repurchase in April having been completed last month. The moves show how healthy Caterpillar's cash flow is, but it's unclear how well they fit with the company's less optimistic assessment of its long-term earnings outlook.

Verizon (NYSE: VZ  ) posted gains of 0.9% even as the leader of Canada's Industry Ministry met with leaders of various Canadian mobile operators in order to discuss Verizon's potential move into the Canadian market. Canadian companies are concerned that Verizon and other U.S. carriers could have the inside track at wireless spectrum auctions to be held next January, with competitive advantages that could put their established franchises at risk. Given the need for Verizon to find new growth avenues, making use of every competitive advantage it can get would be a positive for the company.

Finally, UnitedHealth (NYSE: UNH  ) rose 0.8%. A report over the weekend found that almost half of all states expect to expand their Medicaid programs in order to meet demand for poor residents seeking health insurance coverage under Obamacare's individual mandate. The news gives UnitedHealth and other insurance companies a second bite at the health-care apple, as the company can seek both to cover individuals through insurance policies as well as go after lucrative Medicaid business at the state level.

The impact of Obamacare on Medicaid is just one of the many effects of the new health-care law not only on UnitedHealth and other health insurance carriers but also on you and your own individual finances. Don't stay in the dark. Read The Motley Fool's special report, "Everything You Need to Know About Obamacare" and find out today how your taxes, health insurance, and investments will be affected. Click here to grab your free copy today.

Icahn Says Dell Can't Change Voting Rules

Last week's increased buyout offer for Dell (NASDAQ: DELL  ) coming from Michael Dell and investment firm Silver Lake, with that offer's accompanying request for a change in proxy voting rules, has elicited a response from buyout opposition leaders Carl Icahn and Southeastern Asset Management.

Today, Icahn and Southeastern issued an open letter to the special committee of Dell's board of directors, saying that the change in "the voting method for 'Unaffiliated Stockholder Approval' for the proposed Michael Dell/Silver Lake freeze-out merger raises serious questions for the Special Committee."

The original agreed-upon rules call for non-voted shares to be cast as "no" votes to the buyout. Michael Dell wrote the special committee last week that the rule should be changed because it allows a minority of unaffiliated stockholders to then block the deal. Shares that aren't voted should be ignored, he said, to allow the majority of unaffiliated stockholders to decide the vote.

But as Icahn and Southeastern wrote: "Michael Dell and Silver Lake agreed to a specific voting requirement to approve their deal. ... [They] have now offered to pay a dime for a new method of voting designed to prevent stockholders from passively dissenting on the proposed merger. We view this as a cynical attempt to circumvent the process."

Last Wednesday, Michael Dell and Silver Lake increased their offer from $13.65 a share to $13.75 a share. At that time, Dell's special committee adjourned the stockholders meeting without the scheduled buyout vote and rescheduled it for Aug. 2.

Top Growth Stocks For 2014

Asian stocks rose, with the regional benchmark index touching the highest intraday level since May 2011, as investors weighed earnings reports and energy shares led gains.

China Petroleum & Chemical (386) Corp., the nation�� largest refiner, increased 2.2 percent after Morgan Stanley said China�� cut in fuel prices will benefit the company. Nippon Electric Glass. Co. led gains among Japanese glass makers after industry bellwether Corning Inc. forecast growth. Nintendo Co., the world�� biggest maker of game machines, slumped 5.9 percent in Osaka after missing sales targets for its consoles.

The MSCI Asia Pacific Index added 0.8 percent to 140.02 at 3:53 p.m. in Tokyo, with about five shares rising for every three that fell. The gauge is headed for its highest close since May 2, 2011.

Top Growth Stocks For 2014: Nordstrom Inc.(JWN)

Nordstrom, Inc., a fashion specialty retailer, offers apparel, shoes, cosmetics, and accessories for women, men, and children in the United States. It offers a selection of brand name and private label merchandise. The company sells its products through various channels, including Nordstrom full-line stores, off-price Nordstrom Rack stores, Jeffrey? boutiques, treasure & bond, and Last Chance clearance stores; and its online store, nordstrom.com, as well as through catalog. Nordstrom also provides a private label card, two Nordstrom VISA credit cards, and a debit card for Nordstrom purchases. The company?s credit and debit cards feature a shopping-based loyalty program. As of September 30, 2011, it operated 222 stores, including 117 full-line stores, 101 Nordstrom Racks, 2 Jeffrey boutiques, 1 treasure & bond store, and 1 clearance store in 30 states. The company was founded in 1901 and is based in Seattle, Washington.

Advisors' Opinion:

• [By Kevin1977]

  Director of Nordstrom Inc., Felicia D Thornton, bought 1,140 shares on 9/09/2011 at an average price of $47.89. Nordstrom, Inc. is one of the nation's fashion specialty retailers, with stores located in a number of states, including full-line stores, Nordstrom Racks, Faconnable boutiques, and free-standing shoe stores. Nordstrom Inc. has a market cap of $10.44 billion; its shares were traded at around $47.89 with a P/E ratio of 15.7 and P/S ratio of 1.1. The dividend yield of Nordstrom Inc. stocks is 2% Nordstrom Inc. had an annual average earnings growth of 27.3% over the past 10 years. GuruFocus rated Nordstrom Inc. the business predictability rank of 3.5-star.
  
  On August 11, Nordstrom Inc. reported net earnings of $175 million, or $0.80 per diluted share, for the second quarter ended July 30, 2011. This represented an increase of 20 percent compared with net earnings of $146 million, or $0.66 per diluted share, for the same quarter last year.Second quarter same-store sales increased 7.3 percent compared with the same period in fiscal 2010. Net sales in the second quarter were $2.72 billion, an increase of 12.4 percent compared with net sales of $2.42 billion during the same period in fiscal 2010.
  
  Last week, Director Felicia D Thornton bought 1,140 shares of JWN stock.
  
  Executive Vice President Ken Worzel and Director Philip G Satre bought shares in August.

Top Growth Stocks For 2014: MEDIFAST INC(MED)

Medifast, Inc., through its subsidiaries, engages in the production, distribution, and sale of weight management and disease management products, and other consumable health and diet products in the United States. The company?s product lines include weight and disease management, meal replacement, and vitamins. It also operates weight control centers that offer Medifast programs for weight loss and maintenance, customized patient counseling, and inbody composition analysis. The company markets its products under the Medifast and Essential brand names, including shakes, appetite suppression shakes, women?s health shakes, diabetics shakes, joint health shakes, coronary health shakes, calorie burn drinks, calorie burn flavor infusers, antioxidant shakes, antioxidant flavor infusers, bars, crunch bars, soups, chili, oatmeal, pudding, scrambled eggs, hot cocoa, cappuccino, chai latte, iced teas, fruit drinks, pretzels, puffs, brownie, pancakes, soy crisps, crackers, and omega 3 and digestive health products. Medifast Inc. sells its products through various channels of distribution comprising Web, call center, independent health advisors, medical professionals, weight loss clinics, and direct consumer marketing supported via the phone and the Web; Take Shape for Life, a physician led network of independent health coaches; and weight control centers. The company was founded in 1980 and is headquartered in Owings Mills, Maryland.

Advisors' Opinion:

• [By Mark]

  Revenues are expected to grow 27% next year and yet MEDIFAST (MED: 15.68 0.00%) trades at only 16x consensus 2011 earnings. The company continues to gain market share in the competitive weight management sector and provides investors with the double benefit of both a growth stock and a potential acquisition target.

Top 5 Cheap Stocks To Watch For 2014: TrueBlue Inc.(TBI)

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

Advisors' Opinion:

• [By McWillams]

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

Top Growth Stocks For 2014: Buffalo Wild Wings Inc.(BWLD)

Buffalo Wild Wings, Inc. engages in the ownership, operation, and franchise of restaurants in the United States. The company provides quick casual and casual dining services, as well as serves bottled beers, wines, and liquor. As of July 26, 2011, it had 773 Buffalo Wild Wings locations in 45 states in the United States, as well as in Canada. The company was founded in 1982 and is headquartered in Minneapolis, Minnesota.

Advisors' Opinion:

• [By Fabian]  

  While Chipotle has captured most of the attention among the restaurant stocks, Buffalo Wild Wings (BWLD: 56.62 0.00%) could be 2011’s big winner. Wall Street is expecting 19% earnings growth from Buffalo Wild Wings in 2011 which is only slightly lower than Chipotle’s 20% growth rate. However, BWLD trades at only 18x consensus 2011 estimates while CMG trades at a pricey 40x. On an EBITDA basis, Chipotle trades at over 20x, while Buffalo Wild Wings trades at less than 9x.

Green Mountain Goes Cold (in a Good Way)

I don't know about you, but one of the first things I do each morning is press the power button on my Keurig brewer from the wonderful minds at Green Mountain Coffee Roasters (NASDAQ: GMCR  ) . Then I pop in a K-Cup pack, eagerly wait for the display to show "Ready to Brew," and joyfully press the "Brew" button.

For better or worse, I absolutely need my daily dose of caffeine to get the day rolling. And really, it's amazing how the gratification of having a perfect cup of hot coffee ready in less than two minutes never gets old.

Of course, summer is fast approaching, and the folks at Green Mountain Coffee are doing all they can to remind consumers that that's not the only way they can enjoy their brewers.

In fact, in a press release Wednesday, the company announced a new partnership with Dr Pepper Snapple  (NYSE: DPS  ) , through the official launch of three new Snapple K-Cup packs featuring Peach Iced Tea, Lemon Iced Tea, and Raspberry Iced Tea flavors.

Naturally, Green Mountain wasted no time sprucing up their webpage to spread the news:

Source: GreenMountainCoffee.com.

Of course, using your Keurig to brew over ice certainly isn't a brand-new concept: Green Mountain already has an aptly named "Brew Over Ice" section on its website featuring its own brand of iced coffee drinks, as well as a variety of iced teas and vitamin-infused flavors that were launched last year with the help of Hain Celestial's Celestial Seasonings brand.

While Hain's Celestial Seasonings flavors are all well and good, however, it's hard to argue with the superior brand recognition offered by Snapple and its "Made from the Best Stuff on Earth" catchphrase. What's more, this deal can only serve to help Green Mountain demand that much more shelf space at your friendly neighborhood grocer.

Even better, when you combine Wednesday's news with Green Mountain's freshly renewed five-year partnership with Starbucks -- which, incidentally, tripled the number of Starbucks products the company is allowed to offer for their Keurig platform -- it's easy to see why management was comfortable reiterating their long-term annual net sales growth outlook of 15% to 20%.

Foolish bottom line
In the end, it's increasingly looking as though nothing can stop Green Mountain's meteoric rise. As a result, even with the stock trading at nearly 31 times trailing earnings, and 22.4 times forward estimates, I'm convinced that Green Mountain remains a solid buy for long-term investors.

However, if you'd still like to learn more about Green Mountain Coffee Roasters, you can find our recommendation for how to play the company in our premium research report. In it, you'll find everything you need to know about Green Mountain, including whether it's a buy at today's prices. Click here for instant access.

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More Expert Advice from The Motley Fool

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

Why the Street Should Love Golar LNG Partners Limited Partnership's Earnings

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

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

Calling all cash flows
When you are trying to buy the market's best stocks, it's worth checking up on your companies' free cash flow once a quarter or so, to see whether it bears any relationship to the net income in the headlines. That's what we do with this series. Today, we're checking in on Golar LNG Partners Limited Partnership (Nasdaq: GMLP  ) , 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, Golar LNG Partners Limited Partnership generated $112.0 million cash while it booked net income of $122.5 million. That means it turned 37.0% of its revenue into FCF. That sounds pretty impressive. However, FCF is less than net income. Ideally, we'd like to see the opposite.

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

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

So how does the cash flow at Golar LNG Partners Limited Partnership 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.

Golar LNG Partners Limited Partnership's issue isn't questionable cash flow boosts, but items in that suspect group that reduced cash flow. Within the questionable cash flow figure -- here a negative-- plotted in the TTM period above, other operating activities (which can include deferred income taxes, pension charges, and other one-off items) constituted the biggest reversal. Overall, the biggest drag on FCF came from capital expenditures, which consumed 27.8% of cash from operations.

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

Can your retirement portfolio provide you with enough income to last? You'll need more than Golar LNG Partners Limited Partnership. Learn about crafting a smarter retirement plan in "The Shocking Can't-Miss Truth About Your Retirement." Click here for instant access to this free report.

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

Add Golar LNG Partners Limited Partnership to My Watchlist.

Famed Short Seller Hates Caterpillar, I Don't

Back in January, we wrote about why we thought Caterpillar (CAT) was a solid investment opportunity. Since then the stock is down 15% and famed short seller Jim Chanos has announced he's short the stock. Chanos thinks the company has too much exposure to the wrong products at the wrong place in the cycle.

Chanos got a big win when CAT announced 2Q EPS. The numbers proved dismal and yet another downward guidance was made. However, we are taking the longer view, i.e. out to 2015, and believe that the stock is offering investors impressive upside.

2Q Earnings

EPS of $1.45 compared to $2.52 for the same period last yearEPS was 14% below consensusRevenues were down 16% year over yearCut its 2013 revenue guidance from $57B-$61B to $56B-$58BFull year 2013 EPS guidance was down to $6.50 from $7.00

Segments

Construction Industries saw sales down only 9% year over year. The big tailwind for this segment going forward should be a rise in U.S. residential and nonresidential construction. Meanwhile, Brazil has solid demand thanks to World Cup and the Olympics, where the country is building out infrastructure. CAT is also seeing improvement in China, as the money supply increasing has boosted infrastructure spending. Resource Industries is the real problem child for the company. Sales were down 34% year over year, with sales down in every region, and being down the most in its Asia-Pacific region. 2013 mining segment revenues are expected to be down big given major mining companies are planning to continue their CapEx cuts. Power Systems is one of its underrated segments. Sales were down 4.5% year over year. Asia-Pacific experienced solid growth thanks to strong drilling activity in Australia. Some of the best opportunities lie in offshore drilling in Brazil, the Middle East and Latin America.

Let's dig into some numbers...

CAT is trading well below some of its major equipment peers.

What's more is that the stock is trading at a steep discount on a P/E basis (at 11x) to its five-year 19x average. While we don't see CAT returning to the 19x earnings anytime soon, we do feel that the stock shouldn't be trading at 9x 2015E EPS (more on this later).

Despite the recent setbacks, CAT still has a return on invested capital that's very close to pre-crisis levels.

We think the free cash flow rebounds for the company, where it's currently trading at 8.6x FCF.

The big driver for the rebounding of FCF should be a rebound in sales. Although we see its operating margin further contracting for fiscal 2013, we expect a steady rebound. Based on our 2015E EPS of $9.12, the company is trading at a mere 9x earnings and a 5.25x EV/EBITDA multiple

(click to enlarge)

We see CAT's EBITDA margin reaching 16% in 2015, which is still well below the near 17.5% in 2012. The reason for the contraction is the fundamental shift from a resource-heavy revenue stream to more construction. Outlined below are the key sales drivers.

Note that we see construction revenues going from 31% of total revenues in 2012 to 38% in 2012, while resource revenues go from 34% of total revenues in 2012 to 24% 2015.

Behind the revenue mixes is distinct sales growth. Highlighted above, in yellow, is where we see construction overtaking resource, while resource revenues should see an over 30% revenue decline in 2013 (highlighted in green).

Digging even deeper, we believe the biggest fall in revenues for the resource industry will be tied to the Asia-Pacific region (highlighted in yellow below)! . Meanwhi! le, the only areas of growth we see for 2013 will come from the construction segment of North America and the power systems segment in Asia (highlighted in green).

(click to enlarge)

All in all / Valuation

In the end, we're still very long CAT. The balance sheet is in good shape, with a rising cash balance, now over $6 billion. We like the 2% plus dividend. As far as valuation goes, our quick thesis includes the fact that CAT trades at less than 10x earnings, compared to the peer average of 12.6x and the broader industry average of 17x. Placing a more appropriate 13x P/E on our 2015 EPS estimates suggest upside of nearly 45% at a $120 price target.

Source: Famed Short Seller Hates Caterpillar, I Don't

Disclosure: I am long CAT. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. (More...)

Shorts Are Piling Into These Stocks. Should You Be Worried?

The best thing about the stock market is that you can make money in either direction. Historically, stock indexes have tended to trend up over the long term. But when you look at individual stocks, you'll find plenty that lose money over the long haul. According to hedge fund institution Blackstar Funds, even with dividends included, between 1983 and 2006, 64% of stocks underperformed the Russell 3000, a broad-scope market index.

A large influx of short-sellers shouldn't be a condemning factor to any company, but it could be a red flag from traders that something may not be as cut-and-dried as it appears. Let's look at three companies that have seen a rapid increase in the number of shares sold short and see whether traders are blowing smoke or if their worry has some merit.

Company

Short Increase June 14 to June 28

Short Shares as a % of Float

Portland General Electric  (NYSE: POR  )	471.2%	16.5%
Chimera Investment Management (NYSE: CIM  )	74.8%	1.4%
Vanguard FTSE Emerging Markets ETF (NYSEMKT: VWO  )	85.1%	N/A

Source: The Wall Street Journal. N/A = ETFs do not have a fixed number of shares outstanding.

A short-selling epiphany
It's pretty rare for short-sellers to flock to an electric utility as we've seen in the case of Portland General Electric. The two reasons short-sellers typically avoid utilities has to do with energy being a necessity item (thus most companies boasting strong pricing power), and utilities being low-beta dividend payers, which makes them naturally unattractive to pessimists.

Despite both factors applying to Portland General Electric, a secondary share offering in June provided the proverbial lightbulb over the head for many short-sellers. The offering for 11.1 million shares, which will be priced at $29.50 and will be used to pay down debt, is a forward sale agreement. Simply put, Portland General Electric will issue shares to an affiliate of Barclays and, sometime within the next 24 months, repurchase those shares, which will then add to Portland General Electric's outstanding share count. While the dilutive effects of this offering are put off for now, they will eventually affect Portland General Electric's EPS negatively and make the company appear more expensive.

In this respect, I somewhat agree with short-sellers, but I think the downside expectations could be quite minimal. In spite of the EPS hit, Portland General Electric emerges from this offering with the same pricing power it had previously, but with less debt. Tack on a 3.4% yield and I feel the gains will be negligible for pessimists.

Is this the end of free money?
Few sectors have more at stake with regard to the Federal Reserve's take on further quantitative easing than the mortgage-REIT sector, which purchases various agency and non-agency loans and mortgage-backed securities.

Low lending rates have allowed companies like Chimera Investment to reap the rewards of wide spreads between the rate at which they borrow and the rate at which they lend. Add on the fact that the Fed has been quite forthcoming with its stance that it plans to keep the Fed Funds target lending rate at historic lows through 2015, and you have all the visibility needed for these mREITs to pile on the leverage. But are the good days about to come to a screeching halt?

Should the U.S. central bank choose to start paring back its monthly bond-buying, mREITs could be negatively affected as interest rates rise. For agency-only mREITs such as Annaly Capital Management, the effect shouldn't be as pronounced. Agency-only mREITs are backed by the government against defaults should they occur, and naturally have lower net interest margin rates than their non-agency counterparts. Simply having more MBS's available on the market to purchase without the government gobbling them up may actually be a positive.

The same may not be true for Chimera, which invests in both agency and non-agency loans. Non-agency loans come with higher margin potential since they aren't backed by the government, but they're also much riskier. Should interest rates rise dramatically, this group of mREITs would feel it the most.

Although I'm actually intrigued by Chimera here off its highs, I still feel that agency-only mREITs are the smarter way to play this sector.

It's the end of the world as we know it, and I feel fine
For years the words "emerging market" have meant one thing to investors: double-digit growth opportunity. Many emerging-market economies offer uniquely independent growth situations that have allowed them to expand despite economic slowness in Europe or the U.S. That trend, though, could be about to reverse, which would be bad news for the Vanguard FTSE Emerging Markets ETF.

As my Foolish colleague and ETF guru Dan Caplinger noted just yesterday, many of these emerging-market ETFs, like Vanguard's, are heavily invested in economies that are finally beginning to show signs of weakness. China, for example, has slowed dramatically from its 30-year GDP average growth of 10% and runs the risk of GDP growth that could fall below 7% this year. Take China Mobile (NYSE: CHL  ) , the ETF's second-largest holding, which reported slowing growth in the first quarter as lower-cost competition in China intensifies despite its huge presence. The story of slower growth has been similar throughout many of the ETF's China-based holdings.

Many of these emerging-market economies also rely on natural resources such as metals to drive growth. With gold, silver, and just about every other metal falling 20%-plus, these economies aren't faring too well.

While I could certainly see short-sellers basking in the sun in the short term while metal prices vacillate wildly, I feel the long term still favors higher growth in many of these emerging-market regions. With an extremely diverse portfolio of stocks, this Vanguard FTSE Emerging Markets ETF still appears to be a smart play for the long run that's worth a closer look.

Foolish roundup
As usual, the theme this week is in identifying whether you're trying to score the short-term buck or long-term gains. Although I can certainly justify short-sellers' actions in all three cases, I just don't see very much downside potential beyond the next couple of quarters.

What's your take on these three stocks? Do short-sellers have these stocks pegged, or are they blowing smoke? Share your thoughts in the comments section below.

With the American markets reaching new highs, investors and pundits alike are skeptical about future growth. One need only look at the rising short interest in the above three stocks for evidence of this -- but they shouldn't be. Many global regions are still stuck in neutral, and their resurgence could result in windfall profits for select companies. A recent Motley Fool report, "3 Strong Buys for a Global Economic Recovery," outlines three companies that could take off when the global economy gains steam. Click here to read the full report!

Is BMW Building Its Own EV Charging Stations?

Next week, BMW (NASDAQOTH: BAMXF  ) is rolling out its new, all-electric i3. This move marks BMW's first launch into the niche market of all-electric cars, but BMW's not going in halfway. In fact, BMW is doubling down on its venture into EVs and teaming up with U.K.-based EV charging station provider Chargemaster, in a venture to build fast charge ChargeNow stations for BMW's new i-Series. Here's what you need to know.

BMW i3 Concept Coupe, November 2012. Photo: BMW USA.

BMW's new EV
We won't know for certain what the i3 looks like until next week, but that hasn't dampened the considerable buzz surrounding the new EV. Built using renewable materials when possible, the i3 has a full carbon-fiber structure that lends to the i3's overall weight of 2,634 pounds -- lighter than General Motors' (NYSE: GM  ) Chevy Volt, Nissan Motors' Leaf, and Toyota Motor's Prius plug-in hybrid.

The standard i3 uses a 22kWh lithium-ion battery, delivers 168 horsepower and 184 pound-feet of torque, and can go 0 to 60 mph in 7.2 seconds. More pointedly, reviewers such as Edmunds and BBC's Top Gear test-drove the i3 and raved about the way it performed. According to official European Union test procedures, the i3 can go 118 miles on pure battery in comfort mode. Moreover, BMW says that in the worst conditions the i3 will go 81 miles on pure battery. If that's not far enough, thanks to BMW's e-drive technology, the driver has the option of putting the i3 in an "EcoPro" mode that extends the initial range to 124 miles per charge.

Still not enough range? With the purchase of the optional range extender -- a 650cc two-cylinder gasoline engine that acts as a generator and doesn't provide propulsion -- the range on the i3 is almost doubled. And the best part? The i3 has a base MSRP of $41,350, making this car a serious threat to Chevy's Volt.

More charging stations, please
Even with these impressive specs, the i3, as an EV, faces what all EVs face: range anxiety. No one wants to be stranded in the middle of nowhere, and with charging stations few and far between, that's a real possibility. Luckily, BMW is aware of this problem, and to help offset it, it's buying an estimated 2% equity stake in Chargemaster. The exact details of the deal haven't yet been released, but what is known is that the deal involves having both companies team up for a five-year period, to build fast-charge ChargeNow stations across the U.K., for BMW's i-Series. 

Taking into account that the U.K. is BMW's fourth largest sales market in the world, an expanded infrastructure is fantastic news for consumers considering the i3 but worried about range. Also good news? BMW claims the i3 can recharge in as little as 30 minutes when connected to a 50kW fast-charge station.

What about charging stations in the U.S?
Right now, BMW's quick-charge stations are only for the U.K., but that doesn't mean it can't use the same approach in the United States. The U.S. is BMW's largest market by sales -- although China is expected to surpass the U.S. later in 2013 -- and building a quick-charge infrastructure in the U.S. would probably have a positive impact on BMW's EV sales. Furthermore, the i3 isn't BMW's only car to launch into the EV market. The i8 extended-range plug-in hybrid is expected later in 2014, and it's an impressive vehicle, to say the least. Clearly, these moves signal that BMW is throwing its considerable weight into what is still a niche market. How it'll pan out has yet to be seen, but considering BMW's reputation, this is something to watch -- both for how i affects BMW's bottom line, and for how it affects other EV manufactures' sales.

Are you interested in placing your bets on the auto industry? Well, EVs are still a niche market, and they could remain that way for a while. But some automakers have their hand in EVs and are expanding into one of the great auto frontiers -- China. The Middle Kingdom is already the world's largest auto market, and it's set to grow even bigger in coming years. A recent Motley Fool report, "2 Automakers to Buy for a Surging Chinese Market," names two global giants poised to reap big gains that could drive big rewards for investors. You can read this report right now for free -- just click here for instant access.

NextEra and Spectra Team Up for $3 Billion Natural Gas Project

NextEra Energy (NYSE: NEE  ) announced Friday that it's teaming up with Spectra Energy (NYSE: SE  ) to improve Florida's natural gas infrastructure. NextEra subsidiary Florida Power & Light had previously put out a request for proposals to improve its offerings, and this project beat out the next closest idea by almost $600 million.

The joint venture will pour around $3 billion into the construction of Florida's third major pipeline, connecting Alabama to Georgia and Florida consumers. NextEra will also invest an additional $550 million by itself to connect one of its natural gas power plants to the central pipeline hub.

Florida Power & Light President Eric Silagy noted in a statement:

At FPL, we have worked hard to reduce our dependence on foreign oil and to keep our customers' bills low. Since 2001, our investments in cleaner, more efficient, natural gas power plants have saved our customers more than $6 billion on fuel costs. To continue meeting the growing needs of our customers efficiently and reliably in the years ahead, we will need more natural gas than the two existing major pipelines can deliver, which makes a third, independently routed pipeline system absolutely essential.

In addition to using the pipeline itself, NextEra also notes that other corporations can contract pipeline capacity for their own purposes. Construction is expected to begin in 2016, with full operation expected in 2017.

Top 10 Tech Stocks To Buy For 2014

Buyouts can be one of the quickest ways for investors to score a big profit.

Buyout companies are almost always purchased at a premium that can give shareholders a nice pop. And with the S&P 500 sitting on record cash and looking for ways to grow, the average buyout premium is at an all-time high.

According to Dealogic, 2012's average buyout premium of 25% was up from 23% in 2011 and the highest premium since 2001. That huge average premium included the buyout of Baton Rouge, La.-based energy construction company Shaw Group, which was bought for $46 a share, a 72% premium to its $27 share price. It also included Bristol-Myers Squibb (NYSE: BMY) paying $26 a share to buy biotech company Inhibitex, a huge 163% premium that ranked as the richest deal of the year.

Top 10 Tech Stocks To Buy For 2014: P.T. Telekomunikasi Indonesia Tbk.(TLK)

Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk provides telecommunication and network services worldwide. The company?s Fixed Wireline segment offers local, domestic long-distance, international telephone services, and other telecommunications services, including leased lines, telex, transponder, satellite, and very small aperture terminal (VSAT), as well as ancillary services. Its Fixed Wireless segment provides local and domestic long-distance code division multiple access-based telephone services, as well as other telecommunication services within a local area code. Perusahaan Perseroan?s Cellular segment offers mobile cellular telecommunication services. Its network services comprise satellite transponder leasing, satellite broadcasting, VSAT, audio distribution, and terrestrial and satellite-based leased lines. The company?s data and Internet services include short messaging service for fixed wire line, fixed wireless, and cellular phones, dial-up and broadband Internet access, virtual private network (VPN) frame relay, Internet protocol (IP) VPN, voice over IP for international calls, integrated services digital network connections, and other multimedia services. The company also provides information services, such as billing, directory assistance, and content services; and wireless application protocol, Web portal, ring back tones, voicemail, and building management services. In addition, it offers consultancy services, as well as constructs and maintains telecommunications facilities; interconnection services; telephone directory production services; and cable and pay television services. As of December 31, 2010, the company served 120.5 million customers, including 8.3 million fixed wireline telephone subscribers, 18.2 million fixed wireless telephone subscribers, and 94.0 million cellular telephone subscribers. Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk was founded in 1884 and is headquartered in Bandung, Indonesia.

Advisors' Opinion:

• [By Richard Band]

  The mantra here is “free cash flow.” In recent years, Telkom Indonesia (NYSE: TLK), the dominant provider of both fixed-line and wireless communications in sprawling Indonesia, has poured huge sums into upgrading its networks. Now the company has the luxury of throttling back a bit.

  Starting in 2011, each sales dollar (rupiah, actually) will generate more profit — along with a surge of cash that can be distributed to shareholders. I predict, in fact, that Indonesia’s largest telco will boost its dividend more than 30% by 2013 (from a 2010 base). That’s the kind of growth you want in retirement! Current yield, based on my estimate of 2011 dividends, is 4.8%. Buy TLK up to $36.

Top 10 Tech Stocks To Buy For 2014: TranSwitch Corporation(TXCC)

Transwitch Corporation designs, develops, and supplies semiconductor and intellectual property solutions for voice, data, and video communications equipment. The company provides integrated multi-core network processor system-on-a-chip (SoC) and software solutions for fixed, 3G and 4G mobile, VoIP, and multimedia infrastructures. It offers converged network infrastructure products, including infrastructure VoIP processors comprising Entropia series of processors for wire-line and wireless carrier equipment; EoS/EoPDH mappers and framers for formats and data speeds in the access portion of the network; tributary switches that enable traffic to be switched or re-arranged; and carrier Ethernet solutions consisting of Ethernet controllers and switches, as well as circuit emulation and clock recovery devices. The company also provides FTTx protocol processors, such as mustang, a system-on-chip solution for EPON optical network unit equipment; COLT processor, a system-on-chip so lution for the optical line terminator equipment; and Diplomat-ONT product, an integrated SoC solution for GPON ONU applications, as well as access VoIP processors and access controllers. In addition, it offers broadband customer premises equipment, including multi-service communications processors comprising Atlanta processor, a multi-service SoC for customer premises equipment that supports toll-quality telephone voice, fax, and routing functionality; and HDMI, displayport, HDP, and Ethernet IP cores for consumer electronics, home network equipment, and industrial and automotive applications. The company serves public network systems OEMs, WAN and LAN equipment OEMs, Internet-oriented OEMs, and communications test and performance measurement equipment OEMs, as well as government, university, and private laboratories. It sells its products through direct sales force, independent distributors, and sales representatives. The company was founded in 1988 and is headquartered in Shelton, Connecticut.

Advisors' Opinion:

• [By Michael Brush]

  If you find yourself craving more high-definition video on your smartphone or tablet computer or if you've been checking out 3D televisions -- the next big trend -- you already know why TranSwitch (TXCC) stock should be a winner over the next few years.

  Once a techmania darling, trading at more than $500 a share, TranSwitch crashed and burned along with so many other Internet stocks. It has been all but left for dead since. Wall Street analysts are predicting the stock will actually have fallen to $2 a year from now, from recent levels of around $2.60, according to Thomson Reuters.

  What they're missing is that TranSwitch has revamped its chip offerings so they support high-definition video connections in TVs, PC and game monitors, smartphones, tablets and video cameras. This exposes the company to some big consumer trends. Another new product line supports gear that connects homes, offices and smartphones to the Internet.

  Those analysts and other investors don't put much faith in these new products. So why should you? Because the right kinds of insiders have been accumulating stock. Many of the new products are scheduled to hit the market over the next three months and generate meaningful sales by the fourth quarter. So now is the time to buy.

  Of course, we don't know for sure that TranSwitch's new products will catch on. But behind the scenes, they've been licensed by the likes of Intel (INTC), International Business Machines (IBM), Texas Instruments (TXN) and Analog Devices (ADI), Ted Chung, the TranSwitch vice president of global business development, tells me. That suggests TranSwitch may work its way into the Apple (AAPL) iGadget ecosystem, says Northland Capital Markets analyst Richard Shannon. That would be a game-changer for tiny TranSwitch, but the markets for its new products are so big that it probably can win even without such an advantage

Best Dividend Stocks For 2014: Extenway Solutions Inc. (EY.V)

Extenway Solutions Inc. provides media, connectivity, and communications solutions for the healthcare and hospitality industries primarily in Canada. It offers bedside infotainment terminal solutions that enhance the patient�s hospital experience by providing on demand access to entertainment, including digital TV, video-on-demand, music, Internet radio, Internet access, and video games, as well as educational content. The company also offers interactive TV and guest media solutions, which allow hospitality organizations to manage and coordinate all in-room guest interactions and communications, as well as deliver actionable guest insight for key service and marketing initiatives. In addition, it provides family video conferencing, patient education library, hospital information and administration, marketing, advertising media, integration, and maintenance solutions. The company was formerly known as Infomedia Research Group Inc. and changed its name to Extenway Solutions Inc. in October 2003. Extenway Solutions Inc. is headquartered in Baie-D'Urf茅, Canada.

Top 10 Tech Stocks To Buy For 2014: Vitesse Semiconductor Corporation(VTSS)

Vitesse Semiconductor Corporation engages in the design, development, manufacture, and marketing of semiconductor products to original equipment manufacturers (OEMs) of carrier and enterprise networking products, and data center infrastructure systems worldwide. It offers a line of Ethernet switching products consisting of carrier Ethernet switch engines for customer premise equipment, access network equipment, wireless base stations, mobile access equipment, fiber and microwave wireless backhaul equipment, and metro networking equipment; and Ethernet switches that enable desktop, workgroup, and LAN infrastructure. The company also provides Ethernet media access controllers that offer addressing and channel control mechanisms and are used in enterprise class modular Ethernet switch platforms, as well as in Ethernet-over-SONET/SDH and Ethernet-over-OTN systems used in access, metro, and long-haul carrier networking systems; Ethernet transceivers, including single, quad, and octal devices that allow the transmission of 10/100/1000 BASE-T data over category 5 copper cable and fiber optic cabling for use in personal computers, home electronics, and LAN applications; and Ethernet transceivers with packet timing and synchronization capabilities. In addition, it provides a line of connectivity products, which comprise mixed-signal physical media devices, physical layer devices, crosspoint switches, and signal integrity devices that are used for the connection of systems via optical fiber, copper cable, or backplanes. Further, the company offers a range of transport processing products, such as framers, mappers, and switches, which support data rates up to 10 Gbps for SONET/SDH, EoS, and OTN applications. It markets and sells its products directly to OEMs and original design manufacturers, as well as through third-party electronic component distributors and manufacturing service providers. The company was founded in 1984 and is headquartered in Camar illo, California.

Top 10 Tech Stocks To Buy For 2014: Fuel Tech Inc.(FTEK)

Fuel Tech, Inc. uses a suite of advanced technologies to provide boiler optimization, efficiency improvement, and air pollution reduction and control solutions to utility and industrial customers worldwide. It operates through two segments, Air Pollution Control Technologies and FUEL CHEM Technologies. The Air Pollution Control Technologies segment includes technologies, such as low and ultra low NOx Burners, over-fire air systems, NOxOUT and HERT selective non-catalytic reduction systems, and advanced selective catalytic reduction systems to reduce NOx emissions in flue gas from boilers, incinerators, furnaces, and other stationary combustion sources. This segment distributes its products through direct sales force and agents. The FUEL CHEM Technologies segment uses chemical processes in combination with advanced computational fluid dynamics and chemical kinetics modeling boiler modeling for the control of slagging, fouling, corrosion, opacity, and other sulfur trioxide-r elated issues in furnaces and boilers through the addition of chemicals into the furnace using Targeted In-Furnace Injection technology. This segment?s programs improve the efficiency, reliability, and environmental status of plants operating in the electric utility, industrial, pulp and paper, waste-to-energy, university, and district heating markets; and are installed on combustion units in North America, Europe, China, and India for treating various solid and liquid fuels, including coal, heavy oil, biomass, and municipal waste. It provides operational, financial, and environmental benefits to owners of boilers, furnaces, and other combustion units. The company was founded in 1987 and is headquartered in Warrenville, Illinois.

Advisors' Opinion:

• [By Carlson]

  Fuel Tech, Inc. is an integrated company that uses a range of advanced technologies to provide boiler optimization, improvement and air pollution reduction and control solutions to utility and industrial customers globally. Its EPS forecast for the current year is 0.23 and next year is 0.4. According to consensus estimates, its topline is expected to grow 21.56% current year and grow 20.26% next year. It is trading at a forward P/E of 22.11. Out of eight analysts covering the company, two are positive and have buy recommendations and six have hold ratings.

Top 10 Tech Stocks To Buy For 2014: Morningstar Inc.(MORN)

Morningstar, Inc., together with its subsidiaries, provides independent investment research to investors worldwide. The company operates in two segments, Investment Information and Investment Management. The Investment Information segment offers data, software, and research products and services for individual investors, financial advisors, and institutional clients. It provides Licensed Data, a set of investment data spanning various investment databases, including real-time pricing data available through electronic data feeds; Morningstar Advisor Workstation, a Web-based investment planning system; Morningstar.com, a membership service and Internet advertising space; Morningstar Direct, a Web-based institutional research platform; integrated Web tools to build customized Websites or enhance existing sites; Morningstar Principia, a CD-ROM-based investment research and planning software; Morningstar commodity data that provides data and analytics for the energy, financial, and agriculture sectors; equity and corporate credit research; and Morningstar structured credit ratings and research services. This segment also offers various financial communications materials, real-time data and desktop software, investment software, and investment indexes, as well as various print and online publications. The Investment Management segment offers various products and services, such as Investment Consulting that focuses on investment monitoring and asset allocation for funds of funds, including mutual funds and variable annuities; Retirement Solutions comprising the Morningstar Retirement Manager and Advice by Ibbotson platforms; and Morningstar Managed Portfolios, a asset management service includes series of mutual fund, exchange-traded fund, and stock portfolios. This segment serves banks, brokerage firms, insurance companies, mutual fund companies, and retirement plan sponsors and providers. Morningstar, Inc. was founded in 1984 and is headquartered in Chicago, Illinois.

Top 10 Tech Stocks To Buy For 2014: Nortech Systems Incorporated(NSYS)

Nortech Systems Incorporated operates as a contract manufacturing company. It manufactures wire harness cable and printed circuit board assemblies, electronic sub-assemblies, higher level assemblies, and complete devices. The company also provides value added services and technical support, including design, testing, prototyping, and supply chain management; and repair services on circuit boards used in machines in the medical industry. In addition, it engages in the design, manufacture, and post-production service of electronic and electromechanical medical devices for diagnostic, analytical, and other life-science applications. Nortech Systems Incorporated serves various industries that include aerospace and defense; medical; and the industrial markets, which include industrial equipment, transportation, vision, agriculture, and oil and gas. The company markets its products through sales force and independent manufacturers? representatives. Nortech Systems Incorporated was founded in 1981 and is headquartered in Wayzata, Minnesota.

Top 10 Tech Stocks To Buy For 2014: Gilead Sciences Inc.(GILD)

Gilead Sciences, Inc., a biopharmaceutical company, engages in the discovery, development, and commercialization of therapeutics for the treatment of life threatening diseases worldwide. Its products include Atripla, Truvada, Viread, Emtriva for the treatment of human immunodeficiency virus infection in adults; Hepsera, an oral formulation for the treatment of chronic hepatitis B; AmBisome, a amphotericin B liposome injection to treat invasive fungal infections; Letairis, an endothelin receptor antagonist for the treatment of pulmonary arterial hypertension; Ranexa for the treatment of chronic angina; Vistide, an antiviral medication for the treatment of cytomegalovirus retinitis in patients with AIDS; and Cayston, an inhaled antibiotic used as a treatment to enhance respiratory systems. The company?s products also comprise Tamiflu, an oral antiviral for the treatment and prevention of influenza A and B; Macugen, an intravitreal injection for the treatment of neovascular a ge-related macular degeneration; and Lexiscan/Rapiscan, an injection used as a pharmacologic stress agent in radionuclide myocardial perfusion imaging. Its products under the Phase III clinical trials consist of Cobicistat, a pharmacoenhancer that is under evaluation as a boosting agent for HIV medicines; Elvitegravir, an oral integrase inhibitor being evaluated as part of combination therapy for HIV; Integrase Single-Tablet, a ?Quad? regimen of elvitegravir, cobicistat, tenofovir disoproxil fumarate, and emtricitabine for the treatment of HIV/AIDS in treatment-naive patients; and Aztreonam for inhalation solution for the treatment of cystic fibrosis patients with Pseudomonas aeruginosa. The company?s Phase II clinical trials products comprise Cicletanine, Ranolazine, and Aztreonam, as well as GS 9190, GS 9256, and GS 9451. Its Phase I clinical trial products include GS 7340, GS 5885, GS 6620, GS 9620, and GS 6624. The company was founded in 1987 and is headquartered in Fost er City, California.

Advisors' Opinion:

• [By Hilary Kramer]

  Gilead Sciences (NASDAQ:GILD) recently transformed itself by acquiring Pharmasset (NASDAQ:VRUS), which has developed a promising treatment for Hepatitis C called PSI-7977 and has scored a perfect cure rate in clinical testing. Hepatitis C is largely an untreated disease, and the market potential is huge. The acquisition will dilute Gilead’s earnings through 2014, but GILD will remain solidly profitably through its strong roster of drugs that treat HIV.

• [By TheStreet Staff]

   Gilead Sciences (GILD) hits a snag that delays the filing, approval or launch of its all-oral Hepatitis C drug regimen. Investors also wake up to the realization that the commercial market for Hep C drugs is far smaller than expected. Gilead shares close in the red for the year. This is my Black Swan prediction for 2013.

• [By Dennis Slothower]

  Gilead Sciences is one of the top picks for some investors. While it may not be one of the best green stocks to invest in, the ROE and profit margin make it one to buy.

Top 10 Tech Stocks To Buy For 2014: Digital River Inc.(DRIV)

Digital River, Inc. provides end-to-end global cloud-commerce and marketing solutions. The company offers a range of services that enables its customers to establish an online sales channel. Its services include design, development, and hosting of online stores and shopping carts; store merchandising and optimization; order management; denied parties screening; export controls and management; tax compliance and management; fraud management; digital product delivery via download; physical product fulfillment; subscription management; online marketing, including email marketing; management of affiliate programs; paid search programs; payment processing services; Web site optimization, Web analytics, and reporting; and CD production and delivery services. The company also provides paid search advertising, search engine optimization, affiliate marketing, store optimization, multi-variant testing, and Web analytic and e-mail optimization services. In addition, it offers a range of payment processing services, such as multiple payment methods, fraud management, tax management, cloud-based billing, and other payment optimization services. The company sells its products and services through Internet and direct sales force. It serves software, consumer electronics, and computer and video game product manufacturers, as well as online channel partners, including retailers and affiliates in the United States, Austria, Brazil, China, Germany, Korea, Ireland, Japan, Luxembourg, Mexico, Singapore, Sweden, Taiwan, and the United Kingdom. Digital River, Inc. was founded in 1994 and is headquartered in Minnetonka, Minnesota.

Top 10 Tech Stocks To Buy For 2014: TransAct Technologies Incorporated(TACT)

TransAct Technologies Incorporated designs, develops, assembles, markets, and services transaction and specialty printers. It offers thermal, inkjet, and impact printers to print various transaction records, such as receipts, tickets, coupons, register journals, and other documents. The company also provides various printing supplies and consumables, including inkjet cartridges, ribbons, receipt papers, and other transaction supplies, as well as replacement parts; maintenance, repair, and testing services; and refurbished printers. TransAct Technologies Incorporated sells its printers under the Epic, Ithaca, and Printrex brand names for applications primarily in the banking, POS, casino and gaming, lottery, oil and gas, and medical and mobile markets. The company sells its products to original equipment manufacturers, value-added resellers, and selected distributors, as well as directly and online to end-users in the Americas, Europe, the Middle East, Africa, Asia, Austral ia, the Caribbean Islands, and the south Pacific. The company was founded in 1996 and is headquartered in Hamden, Connecticut.

10 Best Growth Stocks To Buy For 2014

After a brief dip, the Dow Jones Industrial Average (DJINDICES: ^DJI  ) has resurfaced above the break-even mark and sits at a small gain as of 11:30 a.m. EDT. Investors are unsure of the impact of some mixed data on the market this morning, with the numbers implicating a shift in both international and U.S. financial affairs. One sector in the Dow got another earnings boost this morning with an outsider continuing the trend of better-than-expected results -- lifting the whole group.

Mixed results�
Retail sales data for June was released earlier this morning, showing only a slight rise of 0.4%. Though this result marks the third consecutive month of growing sales, the number missed estimates, which were double the actual growth. Though consumer income has been rising, as evidenced by earlier data releases, retail sales have lagged as consumer sentiment is still wary about the future of the economy. Last week's report on sentiment showed that most families are unsure of the progress the economy will make in the next six months, which may be a leading factor in why retail sales are still slow to take off.

10 Best Growth Stocks To Buy For 2014: Sara Lee Corporation(SLE)

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

• [By Carlson]

  Director of Sara Lee Corp., James S Crown, bought 37,500 shares on 9/12/2011 at an average price of $17.5. Sara Lee Corporation is a global manufacturer and marketer of high-quality, brand-name products for consumers throughout the world. Sara Lee Corp. has a market cap of $10.24 billion; its shares were traded at around $17.5 with a P/E ratio of 19.9 and P/S ratio of 1.2. The dividend yield of Sara Lee Corp. stocks is 2.7%.
  
  On August 11, Sara Lee Corp. reported earnings for the fourth quarter 2011. The fourth quarter included an 8% increase in adjusted net sales from continuing operations to $2.3 billion; 9% reported net sales increase, 40% increase in adjusted operating income to $189 million; and reported operating income increase of 19%.
  
  Last week, Director James S Crown bought 37,500 shares of SLE stock. Executive Chairman Jan Bennink bought 58,400 shares in August.

10 Best Growth Stocks To Buy For 2014: Crocs Inc.(CROX)

Crocs, Inc. and its subsidiaries engage in the design, development, manufacture, marketing, and distribution of footwear, apparel, and accessories for men, women, and children. The company primarily offers casual and athletic shoes, and shoe charms. It also designs and sells a range of footwear and accessories that utilize its proprietary closed cell-resin, called Croslite. The company?s footwear products include boots, sandals, sneakers, mules, and flats. In addition, it provides footwear products for the hospital, restaurant, hotel, and hospitality markets, as well as general foot care and diabetic-needs markets. Further, the company offers leather and ethylene vinyl acetate based footwear, sandals, and printed apparels principally for the beach, adventure, and action sports markets; and accessories comprising snap-on charms. The company sells its products through the United States and international retailers and distributors, as well as directly to end-user consumers th rough its company-operated retail stores, outlets, kiosks, and Web stores primarily under the Crocs Work, Crocs Rx, Jibbitz, Ocean Minded, and YOU by Crocs brand names. As of December 31, 2010, it operated 164 retail kiosks located in malls and other high foot traffic areas; 138 retail stores; 76 outlet stores; and 46 Web stores. Crocs, Inc. operates in the Americas, Europe, and Asia. The company was formerly known as Western Brands, LLC and changed its name to Crocs, Inc. in January 2005. Crocs, Inc. was founded in 1999 and is headquartered in Niwot, Colorado.

Advisors' Opinion:

• [By Paul]  

  They’re back! Two years ago everyone was convinced that Crocs (CROX: 23.33 0.00%) was just a fad, but their stock price exploded in 2010 gaining 206%. Revenues are expected to climb 20% this year and analysts are looking for 27% earnings growth in 2011. That type of growth could make Crocs a hot item again in 2011, especially if they can continue to top Wall Street’s estimates each quarter.

Best Financial Companies For 2014: Nordstrom Inc.(JWN)

Nordstrom, Inc., a fashion specialty retailer, offers apparel, shoes, cosmetics, and accessories for women, men, and children in the United States. It offers a selection of brand name and private label merchandise. The company sells its products through various channels, including Nordstrom full-line stores, off-price Nordstrom Rack stores, Jeffrey? boutiques, treasure & bond, and Last Chance clearance stores; and its online store, nordstrom.com, as well as through catalog. Nordstrom also provides a private label card, two Nordstrom VISA credit cards, and a debit card for Nordstrom purchases. The company?s credit and debit cards feature a shopping-based loyalty program. As of September 30, 2011, it operated 222 stores, including 117 full-line stores, 101 Nordstrom Racks, 2 Jeffrey boutiques, 1 treasure & bond store, and 1 clearance store in 30 states. The company was founded in 1901 and is based in Seattle, Washington.

Advisors' Opinion:

• [By Kevin1977]

  Director of Nordstrom Inc., Felicia D Thornton, bought 1,140 shares on 9/09/2011 at an average price of $47.89. Nordstrom, Inc. is one of the nation's fashion specialty retailers, with stores located in a number of states, including full-line stores, Nordstrom Racks, Faconnable boutiques, and free-standing shoe stores. Nordstrom Inc. has a market cap of $10.44 billion; its shares were traded at around $47.89 with a P/E ratio of 15.7 and P/S ratio of 1.1. The dividend yield of Nordstrom Inc. stocks is 2% Nordstrom Inc. had an annual average earnings growth of 27.3% over the past 10 years. GuruFocus rated Nordstrom Inc. the business predictability rank of 3.5-star.
  
  On August 11, Nordstrom Inc. reported net earnings of $175 million, or $0.80 per diluted share, for the second quarter ended July 30, 2011. This represented an increase of 20 percent compared with net earnings of $146 million, or $0.66 per diluted share, for the same quarter last year.Second quarter same-store sales increased 7.3 percent compared with the same period in fiscal 2010. Net sales in the second quarter were $2.72 billion, an increase of 12.4 percent compared with net sales of $2.42 billion during the same period in fiscal 2010.
  
  Last week, Director Felicia D Thornton bought 1,140 shares of JWN stock.
  
  Executive Vice President Ken Worzel and Director Philip G Satre bought shares in August.

10 Best Growth Stocks To Buy For 2014: Eastern Insurance Holdings Inc.(EIHI)

Eastern Insurance Holdings, Inc., through its subsidiaries, provides workers compensation insurance and reinsurance products in the United States. The company?s Workers Compensation Insurance segment provides traditional workers compensation insurance coverage products, including guaranteed cost policies, policyholder dividend policies, retrospectively-rated policies, deductible policies, and alternative market products to employers. This segment distributes its workers? compensation products and services through its independent insurance agents primarily in Pennsylvania, Delaware, North Carolina, Maryland, Indiana, and Virginia. Its Segregated Portfolio Cell Reinsurance segment offers alternative market workers compensation solutions comprising program design, fronting, claims administration, risk management, segregated portfolio cell rental, asset management, and segregated portfolio management services to individual companies, groups, and associations. Eastern Insurance Holdings, Inc. is headquartered in Lancaster, Pennsylvania.

10 Best Growth Stocks To Buy For 2014: Waste Management Inc.(WM)

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

Advisors' Opinion:

• [By Sam Collins]

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

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

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

10 Best Growth Stocks To Buy For 2014: Intuitive Surgical Inc.(ISRG)

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

Advisors' Opinion:

• [By Jim Lowell]

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

• [By Jim Lowell]

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

10 Best Growth Stocks To Buy For 2014: Checkpoint Systms Inc.(CKP)

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

Advisors' Opinion:

• [By Michael]

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

10 Best Growth Stocks To Buy For 2014: TrueBlue Inc.(TBI)

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

Advisors' Opinion:

• [By McWillams]

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

10 Best Growth Stocks To Buy For 2014: MEDIFAST INC(MED)

Medifast, Inc., through its subsidiaries, engages in the production, distribution, and sale of weight management and disease management products, and other consumable health and diet products in the United States. The company?s product lines include weight and disease management, meal replacement, and vitamins. It also operates weight control centers that offer Medifast programs for weight loss and maintenance, customized patient counseling, and inbody composition analysis. The company markets its products under the Medifast and Essential brand names, including shakes, appetite suppression shakes, women?s health shakes, diabetics shakes, joint health shakes, coronary health shakes, calorie burn drinks, calorie burn flavor infusers, antioxidant shakes, antioxidant flavor infusers, bars, crunch bars, soups, chili, oatmeal, pudding, scrambled eggs, hot cocoa, cappuccino, chai latte, iced teas, fruit drinks, pretzels, puffs, brownie, pancakes, soy crisps, crackers, and omega 3 and digestive health products. Medifast Inc. sells its products through various channels of distribution comprising Web, call center, independent health advisors, medical professionals, weight loss clinics, and direct consumer marketing supported via the phone and the Web; Take Shape for Life, a physician led network of independent health coaches; and weight control centers. The company was founded in 1980 and is headquartered in Owings Mills, Maryland.

Advisors' Opinion:

• [By Mark]

  Revenues are expected to grow 27% next year and yet MEDIFAST (MED: 15.68 0.00%) trades at only 16x consensus 2011 earnings. The company continues to gain market share in the competitive weight management sector and provides investors with the double benefit of both a growth stock and a potential acquisition target.

10 Best Growth Stocks To Buy For 2014: CNO Financial Group Inc. (CNO)

CNO Financial Group, Inc., through its subsidiaries, engages in the development, marketing, and administration of health insurance, annuity, individual life insurance, and other insurance products for senior and middle-income markets in the United States. The company markets and distributes Medicare supplement insurance, interest-sensitive and traditional life insurance, fixed annuities, and long-term care insurance products; Medicare advantage plans through a distribution arrangement with Humana Inc.; and Medicare Part D prescription drug plans through a distribution and reinsurance arrangement with Coventry Health Care. It also markets and distributes supplemental health, including specified disease, accident, and hospital indemnity insurance products; and life insurance to middle-income consumers at home and the worksite through independent marketing organizations and insurance agencies. In addition, the company markets primarily graded benefit and simplified issue life insurance products directly to customers through television advertising, direct mail, Internet, and telemarketing. It sells its products through career agents, independent producers, direct marketing, and sales managers. CNO Financial Group, Inc. has strategic alliances with Coventry and Humana. The company was formerly known as Conseco, Inc. and changed its name to CNO Financial Group, Inc. in May 2010. CNO Financial Group, Inc. was founded in 1979 and is headquartered in Carmel, Indiana.