Saturday, May 31, 2014

Report: FBI, SEC probe Icahn, Mickelson and…

Federal investigators have launched what the Wall Street Journal is calling "a major insider-trading probe involving finance, gambling and sports" that involves the trading of activist investor Carl Icahn, pro golfer Phil Mickelson and Las Vegas bettor William "Billy" Walters.

According to a story published on the Journal website late Friday, the Federal Bureau of Investigation and the Securities and Exchange Commission are probing whether Mickelson and Walters illegally traded on nonpublic information they allegedly obtained from Icahn about his investments in public companies. The Journal story attributed the information to "people briefed on the probe."

The feds are said to be investigating whether the past three years Icahn illegally provided Walters — well known in Vegas for his sports-betting abilities — about potentially market-moving investments by Icahn's company, Icahn Enterprises, the Journal story said.

Icahn, Mickelson and Walters are quoted in the article as denying any knowledge of a probe or declining comment.

"We do not know of any investigation," Mr. Icahn told the Journal Friday. "We are always very careful to observe all legal requirements in all of our activities." The suggestion that he was involved in improper trading, he said, was "inflammatory and speculative."

Mickelson is in Dublin, Ohio, playing The Memorial presented by Nationwide Insurance. He shot 70 on Friday to make the cut and is scheduled to tee off Saturday at 10:27 am ET.

Citing anonymous sources, the Journal story said the government probe started three years ago after Icahn accumulated a 9.1% stake in Clorox in February 2011. On July 15, 2011, he made a $10.2 billion offer for Clorox that caused the stock to jump.

"Well-timed trading around the time of his bid caught the attention of investigators, who began digging into the suspicious trading in Clorox stock, the people familiar with the probe said," according to the Journal article.

Clorox ultimately rejected Ica! hn's bid. He later launched a proxy battle, proposing a slate to replace the company's board with 11 of his nominees. In September 2011, he ended the proxy fight and by year-end had sold his Clorox stake.

According to the Journal, "the investigators later expanded their probe to look at trading patterns by Walters and Mickelson relating to Dean Foods, said the people briefed on the probe.

Friday, May 30, 2014

3 Travel Stocks to Buy as Vacationers Pinch Pennies

Facebook Logo Twitter Logo RSS Logo Louis Navellier Popular Posts: 5 Biotech Stocks Promising Future RewardsTurn Trash To Treasure with These Hot Small Caps3 High-Yield Income Stocks Worth Every Penny Recent Posts: 3 Travel Stocks to Buy as Vacationers Pinch Pennies Turn Trash To Treasure with These Hot Small Caps These 2 Travel Stocks Have Blue Skies Ahead View All Posts

Memorial Day weekend marks the unofficial beginning of the summer travel season. Many investors are going to take this as an opportunity to jump in and blindly buy travel stocks as a theme for their portfolio.

That's a terrible idea.

We saw all sorts of articles this week suggesting you rush out to buy the hotel and recreation stocks as the season for summer fun begins. This is another one of those ideas that sounds fantastic, but the numbers tell a different story. Using Portfolio Grader to look at the travel and recreation stocks, I'm seeing discount airlines and -related stocks as strong buys among travel stocks — not the resorts and recreation stocks.

Southwest Airlines (LUV) has long been one of the favorite choices of cost-conscious travelers, and the company is having a fantastic 2014 so far. Earnings are up 87% so far this year; in the most recent quarter Southwest had year-over-year earnings growth of more than 160%. Analysts have been raising their estimates for both the rest of 2014 and 2015 as the fundamentals continue to just get better quarter after quarter. The stock is rated "A" by Portfolio Grader and is a "Strong Buy" at the current price.

Spirit Airlines (SAVE) is quickly becoming a favorite of budget travelers. Spirit is a no-frills airline that allows customer to take advantage of very low fares and then pay for any upgrades they may desire. Consumers seem to like it, as earnings are up more than 60% so far this year. The company is doing better than Wall Street was expecting and earnings estimates have been raised several times in the past month. Spirit Airlines just announced a bunch of seasonal routes for summer travel to places like Atlantic City and Myrtle Beach — that move should help drive profits all summer long. The stock is rated "A" by Portfolio Grader and remains a "Strong Buy."

Consumers are pinching pennies when they book their travel as well. The desire to save as much as possible on air travel, hotels and vacation packages is driving sales and earnings growth at industry-leading online travel concern Priceline (PCLN). In spite of all the attention Priceline gets from Wall Street, this company continually outperforms their expectations. Priceline has posted four consecutive positive earnings surprises, and analysts recently raised estimates for the summer travel season and the rest of 2014. The stock has received an "A" grade from Portfolio Grader since January and remains a "Strong Buy" today.

Travel season is upon us, but that doesn't mean all travel stocks will move higher. Using Portfolio Grader can help you find those stocks that will see powerful profit increases from cost-conscious vacationers this summer.

Louis Navellier is a renowned growth investor. He is the editor of five investing newsletters: Blue Chip Growth, Emerging Growth, Ultimate Growth, Family Trust and Platinum Growth. His most popular service, Blue Chip Growth, has a track record of beating the market 3:1 over the last 14 years. He uses a combination of quantitative and fundamental analysis to identify market-beating stocks. Mr. Navellier has made his proven formula accessible to investors via his free, online stock rating tool, PortfolioGrader.com. Louis Navellier may hold some of the aforementioned securities in one or more of this newsletters.

 

Angie Herbers’ Firm to Merge With Wealth Management Marketing

After a “four-year, overnight merger” process, Angie Herbers Inc., led by Angie Herbers, and Wealth Management Marketing Inc., led by Kristen Luke, are merging to form a new, as-yet-unnamed company with 14 employees that will be based in San Diego.

Herbers, whose firm was founded 12 years ago (and who has been writing for Investment Advisor and ThinkAdvisor for nearly that long; view her most recent writings here), made that quip in an interview Thursday in which she explained the rationale for the merger and the offerings to advisors that the merged company will provide.

The merger is one of equals, with Herbers holding half of the new company’s stock and Luke holding the other 50%. “It’s a true merger,” said Herbers, “creating a new brand and a new name,” which will be rolled out either late this year or early in 2015. Herbers will be managing partner; she and her four employees will move from Manhattan, Kansas, to San Diego, where Wealth Management (founded in 2008) and its 10 employees (including Luke) is based.

“Kristen and I have worked with mutual clients for more than four years,” Herbers said, and “lots of clients told us we should merge; it took us four years for us to say ‘You’re right’” to those clients.

For clients, Herbers said, normally “I would come in at the very beginning and develop a strategy” to help create “great people, processes and procedures, M&A or a succession plan,” but then would refer to Luke’s firm for fulfilling an advisory firm’s marketing strategy.

“I was referring all this business to Kristen, and then we’d work together,” says Herbers, and that’s when clients would say “Why not work together under one firm that offers it all? Once we said yes, it became easy to put together” the merger.

Herbers admits, however, that while she helped “facilitate over 100 mergers” for her advisor clients, “it’s different when it’s your own.”

Why the merger? Herbers says she’s doing it “for myself and my employees and my clients,” since “the missing piece [at her firm] has always been the marketing strategy.” Moreover, she feels strongly that “the competitive landscape of the advisory industry is changing,” which means that for advisors “it’s harder to get new clients from referrals only,” which necessitates a rigorous marketing strategy. “I either had to do this as an advocate for my clients,” Herbers aid, “or send all that business to Kristen.”

Herbers says “our ultimate objective is to be the leading business management firm for independent advisors — for marketing, operations, recruiting and human capital, M&A and succession planning.”

So what’s the plan for two consultants? “We have a clear operational plan that will be rolled out in 2015. We don’t want to do it too fast; we’re asking our clients to change with us, so we need to give clients time to get used to having one firm” to work with.

The toughest part of the process turned out to be the most rewarding, she said. “I was worried” about asking the employees to relocate halfway across the country, Herbers said. “I offered moving packages, and they all agreed,” she says, which served as a “validation of what I worked all my career to accomplish: happy employees. It was the best moment of my professional life.”

---

Check out Should You Be Managing People? How to Tell by Angie Herbers on ThinkAdvisor.

Thursday, May 29, 2014

CR: Honda Accord hybrid falls short of EPA mileage

Consumer Reports says its testing finds the Honda Accord hybrid is fuel efficient, but falls far short of the 47 mpg listed on the sticker.

The Accord hybrid got 40 mpg in combined city and highway tests conducted by the magazine — matching the efficiency of the Honda Civic hybrid and the Toyota Prius hatchback — and making it the best among midsize sedans.

But the magazine's testers caution that Accord hybrid "buyers expecting their car to get the Environmental Protection Agency's figure of 47 mpg might be disappointed. We've found that the EPA tests often exaggerate the fuel-economy of hybrids," said Jake Fisher, director of automotive testing at Consumer Reports.

USA TODAY in a week of city and suburban driving in Washington D.C.-area traffic got about the same result as Consumer Reports, about a combined 38 mpg -- excellent compared to other vehicles tested in the same conditions, but well short of 47.

The CR results also echo a similar finding last year when it took Ford to task for hybrids not meeting EPA ratings. The magazine's test results prompted the EPA to investigate the claims.

Ford voluntarily reduced the mileage listed on the C-Max hybrid and explained the discrepancy as stemming from "general label" rule that allows automakers to test the best-selling model in a family and apply the results to other models with the same weight, engine and transmission. Ford had tested the Fusion hybrid sedan and applied the 47 mpg results to the boxier C-Max.

Ford changed the C-Max sticker to 43 mpg. Consumer Reports testers also were unable to achieve 47 m.p.g. with the Fusion, but Ford did not change the EPA rating for the hybrid option of its popular sedan. Ford also faced class actions alleging false advertising of the mileage for the C-Max and Ford Fusion hybrids. The Lincoln MKZ hybrid, which is mechanically similar to the Fusion, has an EPA rating of 45 mpg.

Honda spokeswoman Robyn Eagles said the company stands by the Accord hybrid's status as the most! fuel efficient midsize sedan in combined city and highway driving. She noted the sedan is rated 50 mpg in city driving.

"We're very happy to see that in Consumer Reports' testing, they confirmed that its 40 m.p.g. average ranks as the most fuel efficient 4-door midsize sedan that they've measured in at least the last 10 years," Eagles said. "It is important to note that no single test can accurately predict the fuel economy that will be experienced by all drivers under all conditions, and the EPA acknowledges this fact in their reporting of miles per gallon ratings."

Beyond formal testing, Accord hybrid owners have reported even better mileage in their real world experiences. At the EPA consumer website fueleconomy.gov, the average user-reported fuel economy is 42.2 mpg.

"We're confident that customers will find the Accord coupe, sedan and hybrid among the most fuel-efficient, safest and fun-to-drive vehicles in the midsize segment," Eagles said.

The magazine also tested Subaru's XV Crosstrek hybrid and dubbed it a "half-hearted hybrid."

Testers found the Crosstek could go up to 20 mph on electric power only if the outside temperature was above 50 degrees and the heat and air conditioning are turned off. In addition, when the start-top system shuts off the engine during a stop, "it restarts with a shudder."

Dow Gains 150 Points, S&P 500 Nears Record High as Stocks Surge on Summers Exit

Is Wednesday’s Fed meeting superfluous? Based on today’s reaction to the announcement that Larry Summers had taken himself out of contention to be the next Fed chief, it just might be.

REUTERS

The Dow Jones Industrials have gained 151 points, or 1%, to 15,527.07 today, while the S&P 500 has risen 0.8% to 1,701.64. The Nasdaq Composite has advanced 0.4% to 3,738.58.

Everyone’s focus was supposed to be on the Fed meeting wednesday, where investors would learn whether tapering was actually going to begin. Instead, Larry Summers announced that he would not seek to take over for the departing Ben Bernanke and market rallied. That suggests the market might care more about who will head the Federal Reserve after BErnanke’s term ends in 2014, more than the beginning of tapering.

 Deutsche Bank’s Jim Reid explains what comes next:

Well a highly anticipated week has started with a bang as late last night Summers pulled out of the race to be the next Fed Governor after what was becoming an increasingly difficult political battle for him to win. In a week where the FOMC will likely start to taper QE…the market will at the margin see his withdrawal as one which prolongs unorthodox policy for longer – partly because it moves the more dovish Yellen up the favourites list for the new job.

So with Summers withdrawing from the Fed race, the two other top contenders mentioned by President Barack Obama for the Fed job are Janet Yellen and Donald Kohn, the Fed’s current vice and previous Fed vice chairpersons respectively. A number of media reports suggest that it's still possible that Obama could turn to other "dark horse" candidates such as former Treasury Secretary Timothy Geithner or former Fed Vice Chairman Roger Ferguson. Geithner though was quoted this morning reaffirming his disinterest in leading the Fed (WSJ).

Marketfield’s Michael Shaoul calls the Summers announcement noise:

We would also stress how unimportant all of this is over the medium to longer term. We never saw any great difference between Summers and Yellen since neither candidate seemed to recognize the degree to which FOMC policy has fallen behind the trajectory of the US economy. We also believe we have reached the point at which FOMC accommodation has started to actually undermine the foundations of the bond market, as the risks of an inflationary impulse start to grow in stronger portions of the US economy. We have also reached the point at which bond returns simply cannot keep up with equities, and even today’s rally in bonds seems likely to be a fraction of the gains for those enjoyed by the broad US equity market, which looks to be pushing further into blue sky territory.

Therefore while this morning’s violent rally may bring some much needed respite to those heavily exposed to the bond market it is likely to blow over soon enough and be replaced by another grind towards higher yields and lower prices as investment capital continues to head for the exits. Clearly the risks of an imminent breakdown in the bond market have diminished for the time-being, but we would still expect substantial difficulties to be encountered in the weeks ahead making this rally an excellent selling opportunity for those who remain over-exposed to fixed income.

And the taper? Let’s wait until Wednesday.

Blyth (BTH) has gained 10% to $14.25 this morning in what could be a short squeeze.

Packaging Corp. of America (PKG) has jumped 6.3% to $57.99 after it said it would buy Boise (BZ) for $1.28 billion. Boise has gained 26% to $12.55.

Allegheny Technologies Incorporated (ATI) has gained 9.7% to $31.41 after it said it would sell its tungsten business to Kennametal (KMT). Kennametal has risen 2% to $46.92.

Insiders Are Buying Owens Realty Mortgage

One real estate investment trust has seen intensive insider buying during the last 30 days. Intensive insider buying can be defined by the following three criteria:

The stock is purchased by three or more insiders within one month.

The stock is sold by no insiders in the month of intensive purchasing.

At least two purchasers increase their holdings by more than 10%.

Owens Realty Mortgage (ORM) is a real estate investment trust that invests in commercial real estate mortgage loans primarily in the Western U.S. The company specializes in loans that require speed and flexibility. Owens Realty Mortgage is externally managed and advised by Owens Financial Group.

[ Enlarge Image ]

Insider Buying During the Last 30 Days
Dennis Schmal purchased 2,000 shares on Aug. 20 and currently holds 2,000 shares or less than 0.1% of the company. Dennis Schmal serves as a director of the company. Dennis Schmal increased his holdings from zero shares to 2,000 shares in August.Melina Platt purchased 1,000 shares on Aug. 20 and currently holds 1,000 shares or less than 0.1% of the company. Melina Platt has served as the controller of Owens Financial Group since May 1998. Melina Platt increased her holdings from zero shares to 1,000 shares in August.Bryan Draper purchased 3,000 shares on Aug. 20 and currently holds 6,556 shares or less than 0.1% of the company. Bryan Draper has served as a director, secretary, treasurer and chief financial officer of Owens Realty Mortgage since its inception in 2012. Bryan Draper increased his holdings by 84.4% in August.Insider Buying by Calendar Month

Here is a table of Owens Realty Mortgage's insider-trading activity by calendar month.

MonthInsider buying / sharesInsider selling / shares
August 20137,0000
July 2013! 00
June 201300
May 201300

There have been 7,000 shares purchased and there have been zero shares sold by insiders this year.

Financials

Owens Realty Mortgage reported the second-quarter financial results on August 14 with the following highlights:

Revenue$3.6 million
Net income$6.4 million
Book value$16.53 per share

News

Owens Realty Mortgage announced on August 15 a stock repurchase plan to repurchase five percent of the company's outstanding shares.

Competition

Owens Realty Mortgage's competitors include American Assets Trust (AAT), Alexandria Real Estate Equities (ARE) and Boston Properties (BXP). American Assets Trust has seen five insider buy transactions and four insider sell transactions this year. American Assets Trust has a dividend yield of 2.78%. Alexandria Real Estate Equities has seen 14 insider sell transactions this year. Alexandria Real Estate Equities has a dividend yield of 4.10%. Boston Properties has seen one insider buy transaction and four insider sell transactions this year. Boston Properties has a dividend yield of 2.43%.

Conclusion

There have been three different insiders buying Owens Realty Mortgage and there have not been any insiders selling Owens Realty Mortgage during the last 30 days. All three of these insiders increased their holdings by more than 10%.

Owens Realty Mortgage has a book value of $16.53 per share and the stock has a dividend yield of 1.53%. I believe the stock could be a good pick below the book value of $16.53 per share.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Wednesday, May 28, 2014

Cliffs Natural Resources: ‘Breach of Covenants Possible’ Despite Cost Cuts, RBC Says

After yesterday’s close, Cliffs Natural Resources (CLF) said that it would cut capital spending by $100 million in 2014, its remedy for continued weakness in iron and coal.

Wells Fargo’s Sam Dubinsky says Cliffs’ management is “doing the best it can” but that “pain is inevitable.” He explains why:

While we think the new CEO is doing a commendable job tightening operations, we see no easy way out for CLF shares due to negative long-term fundamentals for iron ore and ongoing cost challenges in Canada. Note we estimate Cliff’s recurring EBITDA at ~$500M at today’s iron ore pricing, below current Street estimates near $880-$890M for 2014/2015, though the cap-ex cut should keep free cash flow near break-even.

Agence France-Presse/Getty Images

RBC Capital Markets’ Fraser Phillips and team thinks Cliffs Natural Resources could breach its debt covenants:

Cliffs’ reduction of its capital expenditure will help it to conserve cash during the current weak iron ore pricing environment. While we view the capital outlay reduction as a positive, Cliffs’ debt covenant holiday is over, and a breach of covenants is possible if the current weak iron ore price environment persists.

Cliffs must maintain a total funded debt/EBITDA ratio less than 3.5 and an EBITDA to interest expense ratio for the trailing four quarters of at least 2.5. At the end of Q1/14, we calculate that Cliffs’ debt/EBITDA ratio was 2.5 and EBITDA/interest was 7.5, and we expect Cliffs to end the year with debt/EBITDA of 3.1 and EBITDA/interest of 6.5. However, our current iron ore price forecast for 2014 is $119.25/tonne CFR China. Our analysis indicates that if the average spot price for 2014 is $114.30/tonne CFR China or below, Cliffs will trigger its total funded debt/ EBITDA covenant. This corresponds to a spot price for the remainder of the year of $110.25/tonne or below.

Shares of Cliffs Natural Resources have slid 3.9% to $15.73 at 11:13 a.m., while other iron miners have gotten hits as well. Rio Tinto (RIO) has dropped 2.8% to $53.04, BHP Billiton (BHP) has fallen 1.3% to $69.18 and Vale (VALE) is off 0.7% at $12.98.

This Acquisition Will Add to Google's Long-Term Growth

It's all going to be about what OS is eventually going to not only be powering your computer and phone, but running in your vehicle and controlling the appliances in your home. Companies like Apple (AAPL), Microsoft (MSFT), Google (GOOG)(GOOGL), and even BlackBerry (BBRY) are duking it out to own your personal ecosystem.

We all recall when Google purchased Nest — the company that makes thermostats and fire alarms — earlier this year for $3.2 billion. Nest was a smaller company, founded by a former Apple engineer in 2010. The purchase price that Google put on Nest was a shocker, as it was "nearly 10 times more than Nest's annual revenue."

Here we are just months later, and Nest has just issued a massive safety warning that's suggesting to users that they should turn off the "Nest Wave" feature of the products, which the company states could inadvertently turn off the product.

Nest's CEO issued the following letter.

To the Nest community:

Since introducing the Nest Protect: Smoke + Carbon Monoxide alarm, we've heard touching stories from many of you about how we've helped keep you and your families safe. I consider your safety a huge part of my job and it's something I think about and take pride in every day.

At Nest, we conduct regular, rigorous tests to ensure that our products are the highest quality. During recent laboratory testing of the Nest Protect smoke alarm, we observed a unique combination of circumstances that caused us to question whether the Nest Wave (a feature that enables you to turn off your alarm with a wave of the hand) could be unintentionally activated. This could delay an alarm going off if there was a real fire. We identified this problem ourselves and are not aware of any customers who have experienced this, but the fact that it could even potentially happen is extremely important to me and I want to address it immediately.

We feel that the best and safest thing to do is to immediately disable the Nest Wave feature to resolve the issue and remove any safety concerns. While we fix Nest Wave, we have also halted sales of all new Nest Protect alarms to ensure no one buys an alarm that needs an immediate update.

Once we have a solution that ensures Nest Wave works as intended, we will update our software to turn this feature back on. This will only happen after extensive testing and once we have received approval from safety agencies in the US, Canada and UK. We expect this to take at least two or three months and we'll continue to update you as we have more information.

We're enormously sorry for the inconvenience caused by this issue. The team and I are dedicated to ensuring that we can stand behind each Nest product that comes into your home, and your 100% satisfaction and safety are what motivates us. Please know that the entire Nest team and I are focused on fixing this problem and continuing to improve our current products in every way possible. If you don't want to keep your Nest Protect smoke alarm, we will give you a complete refund.

Our customer support team is available to help answer any and all questions you have, and we've posted detailed answers to some of the questions we anticipate here.

Thank you for your continued loyalty and support."

Immediately, people are likely to already be thinking, "Another GM (GM)?" But no, this is not quite a GM. This is an important update, but is nowhere near the magnitude of the recall that GM is finding itself going through.

Nest is proactively addressing this issue, which is something that GM most certainly did not do. Further, Nest has claimed that this issue has yet to be a complaint from customers themselves; it was simply something they found internally while performing laboratory testing.

Additionally, the fix is going to be relatively simple and akin to the Tesla charger recall: Nest will stop selling current units and will blast those with Wi-Fi access with an update that will fix the issue. Like Tesla (TSLA)'s ridiculous headlines about the "Model S recall" that wasn't really a recall, this is likely to be filed under "non-events" over the next couple of days as well, I'm predicting.

This news comes on the heels of Google's "split" of its non-voting class of stock. Yesterday, Google's non-voting C shares were issued for each existing A share in a 2:1 split that the company says it will use for liquidity purposes. Both classes of shares got a bump in trading yesterday morning.

Long erm, with Eric, Sergey and Larry all still at the helm of the ship, Google is likely set to continue its exponential growth and aggressive competition in the ecosystem game. Google stock, I contend, remains a strong value for long-term growth.

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Stocks Running in Place

Each Monday, MoneyBeat publishes a short column in the WSJ print edition highlighting a statistic getting traction in the markets. This week's "big number" is 4.8%, the S&P 500′s spread between its intraday high and low over the past three months.

Stocks have been running in place over the past three months. Bloomberg News

The U.S. stock market is going nowhere fast.

Investors have sold into rallies and bought the dips over the past three months, a choppy trading environment that has left the S&P 500 stalled around record levels.

Over the past three months, the spread between the S&P 500's intraday high and low is 4.8%, the narrowest trading range since October 2006, according to market-research firm Bespoke Investment Group. Since 1984, the S&P 500 has traded in a tighter range over a three-month period only six times. The S&P 500, on average, swings in a 13% range over a three-month period.

The narrow trading range comes as fear has diminished on Wall Street. The Chicago Board Options Exchange Volatility Index, or VIX, fell last week to its lowest level in 14 months, as many investors have stopped betting on large stock swings. The gauge is widely viewed as a proxy for the stock market's capacity for sudden spikes and plunges.

"The broader market couldn’t be more relaxed," said Paul Hickey, co-founder at Bespoke.

The S&P 500 finished Friday at 1900.53, its 11th record closing high of the year. The stock index is up 2.8% in 2014.

Such a tight trading range doesn’t necessarily bode well for future performance. In the other instances when the S&P 500 traded in tight three-month bands, the index averaged a 1% gain three months later and a 2.1% advance six months later, according to Bespoke.

By comparison, the S&P 500 has averaged a 2.4% gain in all three-month ranges since 1984 and a 4.9% increase in all six-month ranges, according to Bespoke.

Tuesday, May 27, 2014

Pilgrim's Pride makes $6.4B offer for Hillshire

In what's shaping up to be the ultimate food fight, a $6.4 billion mega-deal by Pilgrim's Pride to buy Hillshire Brands could undo Hillshire's previous plans to buy Pinnacle Foods for $4.23 billion.

Pilgrim's Pride, which is the world's second largest poultry producer, on Tuesday offered to acquire the giant meat producer, Hillshire Brands, eager to latch onto the company's familiar brands that include Jimmy Dean sausages, Ball Park hot dogs and Hillshire Farms lunch meats. Hillshire also makes Sara Lee-branded frozen baked goods.

At the grocery store, in the pantry and inside the kitchen -- even in a challenging economy -- consumers continue to be attracted to iconic brands that deliver perceived value. That's one reason why, earlier this month, Hillshire pressed to purchase Pinnacle, whose household name brands include Birds Eye frozen vegetables and Duncan Hines cake mixes.

"We intend to extend Hillshire Brands into more categories," Pilgrim's CEO Bill Lovette said in a conference call Tuesday morning. Among those, he noted, is an expansion into natural and antibiotic-free products. The combination of Pilgrim's Pride and Hillshire, he said, "creates the most powerful branded combo of meat products in the industry."

Even than, BMO Capital Markets analyst Kenneth B. Zaslow, also on the conference call, said that he expects some "push back" from Hillshire.

There was strong reaction on Wall Street. In morning trading, Hillshire Brands jumped nearly 22% to $45.10. Pilgrim's Pride jumped more than 4% to $26.20. Pinnacle Foods fell 6% to 31.13.

Pilgrim's Pride, which is the U.S. division of the Brazilian meat company JBS, insists the deal is better than Hillshire's plan to purchase Pinnacle. Pilgrim's offer is $45 a share, which represents a 25% premium to the volume-weighted price of Hillshire shares over the preceding 10 days, said Pilgrim, in a statement.

"For Hillshire shareholders, our proposal provides a substantial premium, greater certainty and an imm! ediate cash value for their shares," said Lovette, in a statement. He said the deal could close in the third quarter of 2014, if Hillshire nixes its deal with Pinnacle.

As part of its deal to buy Hillshire Brands, Pilgrim's Pride would pay the $163 million termination fee payable to Pinnacle if Hillshire terminates its prior deal with Pinnacle.

Hillshire officials declined to comment on Tuesday.

But in the conference call, Lovette took great pains to describe some of the synergies that he envisions between the two companies.

For example, he noted, Pilgrim's Pride has taken a team of engineers into six of its 33 plants and videotaped every plant job for detailed analysis. That tape was then run through special software that analyzes the motions involved in each job and comes back with recommendations to simplify. "That technology will be available for future plants," he noted.

Also, he said, Pilgrim's Pride already is one of the leading producers and marketers of chicken products for the nation's school lunch program. "We think that we can leverage and extend the Hillshire brands in that channel and category."

Dow Swings Widely As Putin, Obama Spar About Syria

Associated Press

The market quickly took a nosedive after Russia’s president said his nation would assist Syria if it was attacked, and President Barack Obama defended the logic of a limited U.S. strike.

Update: The Dow Jones Industrial average is now higher by 9 points. The Dow was down 94 points to 14,843, after dropping nearly 150 points.  The S&P 500 index was off by 5.5 points to 1649, while the Nasdaq Composite was off nearly 17 points to 3642.  

Equities had traded higher despite a disapointing jobs report, which showed a lower unemployment rate, but more workers dropping out of the market or working part-time jobs.

With stability in the Middle East in question, the price of oil continues to climb higher, with the U.S. benchmark up $1.24, or 1.1%, to $109.61 per barrel.

On the use of force in Syria, where the regime’s alleged use of deadly gas killed 1,400 people, including more than 400 children, according to U.S. and other reports, President Obama just said in live remarks from the G-20 summit in St. Petersburg, Russia:

“This is not something we have fabricated. This is not something we are using as an excuse for military action. I was elected to end wars, not start them. But … we have to make hard choices … this is one of those times.”

At the same conference, Russian President Vladimir Putin said his country would “assist” Syria if attacked.

Among stocks, cellular tower operator American Tower (AMT), a real estate investment trust, is up nearly 5% after saying it will buy the parent of tower operator Global Tower Partners for $4.8 billion, according to Flyonthewall.com.  Crown Castle International (CCI) is up 3%. Press release here.

Shares of Walgreen (WAG) are down 1%. The retail chain reported a strong 4.8% rise in August sales Thursday and was the subject of a favorable Barrons.com story (subscription required). Our piece, by colleague Johanna Bennett, posits Walgreen’s “stock price has yet to reflect the expected enormous impact to earnings over the next three years as the company completes its blockbuster acquisition of European pharmacy giant Alliance Boots, and embarks on a joint venture with drug wholesaler AmerisourceBergen (ABC).”

Monday, May 26, 2014

10 Best Stocks To Buy Right Now

LONDON -- SSE� (LSE: SSE  ) doesn't see itself in the "electricity generation" business as much as in the "dividend generation" business.

At least that's the impression you'd get from its website. Most FTSE 100 companies have a section on their websites with a name like "Our Strategy". Few devote it entirely to the merits of dividends, as SSE does: dividends for income, dividends for growth through reinvestment, dividends as a mechanism to enforce discipline in capital allocation, and dividends as a yardstick to hold management to account.

Track record
That single-minded focus is reflected in a superlative track record. It claims to be one of just five FTSE 100 companies to have delivered a real dividend increase every year since 1999.

It's expected to increase the next full-year payout by at least 2% more than RPI when it announces its results next month. After that, with the regulatory regime not yet settled, the current target is to increase dividends at least in line with inflation, maintaining dividend cover around 1.5 times.

10 Best Stocks To Buy Right Now: Chipotle Mexican Grill Inc.(CMG)

Chipotle Mexican Grill, Inc. develops and operates fast-casual, fresh Mexican food restaurants in the United States, Canada, and England. Its restaurants primarily offer burritos, tacos, burrito bowls, and salads. As of December 31, 2011, it operated 1,230 restaurants, which includes 1 ShopHouse Southeast Asian Kitchen. Chipotle Mexican Grill, Inc. was founded in 1993 and is based in Denver, Colorado.

Advisors' Opinion:
  • [By Steve Symington]

    Earlier this week, I wondered whether it would be worth the risk to short shares of burrito maker Chipotle Mexican Grill (NYSE: CMG  ) .�

  • [By Demitrios Kalogeropoulos]

    It's getting more expensive to make a good burrito. Chipotle Mexican Grill (NYSE: CMG  ) just reported earnings for the first quarter and, while the results were generally good, the company saw its food costs tick up, yet again.

  • [By Blake Bos]

    In the following video, Motley Fool consumer goods analyst Blake Bos takes a close look at Chipotle (NYSE: CMG  ) ahead of its earnings report this Friday. Blake gives investors six key things to watch for in Chipotle's earnings, so they can know whether the chain is continuing to execute on its growth targets, and what they can expect from the stock going forward.

10 Best Stocks To Buy Right Now: Cameron International Corp (CAM)

Cameron International Corporation (Cameron), incorporated on November 10, 1994, provides flow equipment products, systems and services to worldwide oil, gas and process industries. Cameron operates in three business segments: Drilling and Production Systems (DPS), Valves & Measurement (V&M) and Process & Compression Systems (PCS). The DPS segment includes businesses, which provides systems and equipment used to control pressures and direct flows of oil and gas wells. The V&M segment includes businesses, which provides valves and measurement systems used to control, direct and measure the flow of oil and gas as they are moved from individual wellheads through flow lines, gathering lines and transmission systems to refineries, petrochemical plants and industrial centers for processing. The PCS segment includes businesses, which provides standard and custom-engineered process packages for separation and treatment of impurities within oil and gas and compression equipment and aftermarket parts and services to the oil, gas and process industries. During the year ended December 31, 2011, it acquired LeTourneau Technologies, Inc. (LeTourneau) from Joy Global Inc. During 2011, it acquired Vescon Equipamentos Industrias Ltda. During 2011, it acquired 51% interest in Newmans Valves. In September 2012, TTS Group ASA sold its drilling equipment business to the Company. Effective August 5, 2013, Cameron International Corp acquired a 75% interest in Douglas Chero SpA, from Consilium SGR SpA.

Drilling & Production Systems Segment

Cameron�� products are employed in a range of operating environments, including basic onshore fields, complex onshore and offshore environments, deepwater subsea applications and ultra-high temperature geothermal operations. The products within this segment include surface and subsea production systems, blowout preventers (BOPs), drilling and production control systems, block valves, gate valves, actuators, chokes, wellheads, manifolds, drilling risers, top drive! s, mud pumps, other rig products and aftermarket parts and services. In addition, the DPS segment designs and manufactures structural components for land and offshore drilling rigs. The segment�� businesses also manufacture elastomers, which are used in pressure and flow control equipment and other petroleum industry applications, as well as in the petroleum, petrochemical, rubber molding and plastics industries. The businesses within this segment market their products directly to end-users through a worldwide network of sales and marketing employees, supported by agents in some international locations. Customers include oil and gas majors, national oil companies, independent producers, engineering and construction companies, drilling contractors, rental companies and geothermal energy producers. The businesses included in this segment are Drilling Systems, Surface Systems, Subsea Systems and Flow Control.

Drilling Systems is a global supplier of integrated drilling systems for onshore and offshore applications. Drilling equipment designed and manufactured includes ram and annular BOPs, control systems, drilling risers, drilling valves, choke and kill manifolds, diverter systems, top drives, draw works, mud pumps, other rig products and aftermarket parts and services. The products are marketed under the Cameron, Guiberson, H&H CUSTOM, H&H, Melco, LeTourneau, Lewco, OEM and Townsend brand names. Surface Systems is a global market in supplying surface production equipment, from conventional to high-pressure, high temperature (HPHT) wellheads, production systems and controls, block valves, gate valves, mudline systems, dry completion systems and aftermarket parts and services. The products are marketed under the Cameron, Camrod, IC, McEvoy, Precision, SBS, Tundra, Willis and WKM brand names. Cameron, which has a global base of installed equipment and an aftermarket presence in hydrocarbon-producing region worldwide, is the provider of surface production equipment. Surface Systems added new s! ales and ! aftermarket facilities in the Marcellus, Eagle Ford and Haynesville shale regions.

Subsea Systems is a provider of subsea wellheads, production systems and controls, manifolds and aftermarket parts and services to customers worldwide, from basic subsea tree orders to integrated solutions, as well as installation and aftermarket support. These products are marketed under the Cameron, Mars, McEvoy and Willis brand names. Flow Control provides chokes, actuators, gears, valve accessories and automation solutions to other Cameron businesses, as well as to other industry manufacturers and directly to end users under such brand names as Cameron, Dynatorque, Ledeen, Maxtorque, Test and Willis. Flow Control has expanded its subsea chemical injection metering valve (CIMV) product line, introducing a high-flow CIMV.

Valves & Measurement Segment

Cameron�� products include gate valves, ball valves, butterfly valves, Orbit valves, double block & bleed valves, plug valves, globe valves, check valves, actuators, chokes and aftermarket parts and services, as well as measurement products such as totalizers, turbine meters, flow computers, chart recorders, ultrasonic flow meters and sampling systems. This equipment and the related services are marketed through a worldwide network of combined sales and marketing employees, as well as distributors and agents in selected international locations. Customers include oil and gas majors, independent producers, engineering and construction companies, pipeline operators, drilling contractors and major chemical, petrochemical and refining companies. The businesses included in this segment are Distributed Valves, Engineered Valves, Process Valves, Measurement Systems and Aftermarket Services.

Distributed Valves provides a range of valves used in the exploration, production and transportation of oil and gas, with products sold through a network of wholesalers and distributors, primarily in North America and to upstream markets in A! sia-Pacif! ic and the Middle East. These valves are marketed under the brand names Cooper, Demco, Navco, Newco, Nutron, OIC, Techno, Texstream, Thornhill Craver, Wheatley and WKM. Engineered Valves provides a range of customized ball, gate and check valves serving the oil and gas production, pipeline, subsea and liquefied natural gas (LNG) markets. Products are marketed under the brand names Cameron, Entech, Grove, Ring-O, TK and Tom Wheatley.

Process Valves provides valves under the brand names of General Valve, Orbit, TBV and WKM for use in critical service applications that are often subject to extreme temperature conditions, particularly in refinery, power generation, including nuclear, chemical, petrochemical, gas processing and liquid storage terminal markets, including liquefied natural gas (LNG). Measurement Systems designs, manufactures and distributes measurement products, systems and solutions to the global oil and gas, process and power industries. The Company�� main product brand names include Barton, Caldon, Clif Mock, Jiskoot, Linco, Nuflo and PAAI. Aftermarket Services provides preventative maintenance, original equipment manufacturer (OEM) spare parts, repair, field service, asset management and remanufactured products for valves and actuators.

Process & Compression Systems Segment

Integrally geared centrifugal compressors are used by customers worldwide in a range of industries, including air separation, petrochemical, chemical and process gas. Products include oil and gas separation equipment, heaters, dehydration and desalting units, gas conditioning units, membrane separation systems, water processing systems, integral engine-compressors, separable reciprocating compressors, two and four-stroke cycle gas engines, turbochargers, integrally-geared centrifugal compressors, compressor systems and controls. Aftermarket services include spare parts, technical services, repairs, overhauls and upgrades. The businesses included in this segment are Process System! s, Recipr! ocating Compression and Centrifugal Compression.

The process systems businesses provide custom-engineered process packages to oil and gas majors, national oil companies, independent operators and engineering, procurement and construction companies worldwide for separation and treatment of oil, gas, water and solids. Products offered include separators, heaters, dehydration and desalting units, gas conditioning units, membrane separation systems, water processing systems and aftermarket parts and services. PCS markets its process systems products under the Cameron, Consept, Cynara, Hydromation, KCC, Metrol, Mozley, NATCO, Petreco, Porta-test, Unicel, Vortoil and Wemco brand names.

Reciprocating Compression equipment is used throughout the energy industry by gas transmission companies, compression leasing companies, oil and gas producers and independent power producers. Reciprocating Compression products and services are marketed under the Ajax, Cooper-Bessemer, CSI, Enterprise, Superior, Texcentric and TSI brand names. Ajax integral engine-compressors, which combine the engine and compressor on a single drive shaft, are used for gas re-injection and storage, as well as on smaller gathering and transmission lines. Superior-brand separable compressors are used for natural gas applications, including production, storage, withdrawal, processing and transmission, as well as petrochemical processing. These high-speed separable compressor units can be matched with either natural gas engine drivers or electric motors. Reciprocating Compression also provides global support for its products and maintains sales and service offices in key international locations. During 2011, approximately 60% of the Reciprocating Compression revenues were generated by sales of aftermarket parts and services in support of the Company�� worldwide installed base of compression equipment. Customers for Reciprocating Compression products include oil and gas majors, national oil companies, petrochemical and re! fining co! mpanies, midstream natural gas companies, independent power producers and compressed natural gas distribution companies.

Centrifugal Compression manufactures and supplies integrally geared centrifugal compressors and provides aftermarket services to customers worldwide. Centrifugal air compressors, used in manufacturing processes (plant air), are sold under the Turbo-Air. Engineered compressors are used in the process air and gas industries and are identified by the MSG. The process and plant air centrifugal compressors deliver oil-free compressed air and other gases to customers, thus preventing oil contamination of the finished products. Centrifugal Compression also provides installation and maintenance services, parts, repairs, overhauls and upgrades to its worldwide customers for plant air and process gas compressors. It also provides aftermarket service and repairs on all equipment it produces through a worldwide network of distributors, service centers and field service technicians utilizing an extensive inventory of parts marketed under the Joy brand name. Centrifugal Compression customers include oil and gas majors, national oil companies, air separation companies, independent power producers, petrochemical and refining companies, midstream natural gas companies and durable goods manufacturers.

The Company competes with Aker Solutions, Balon Corporation, Circor International, Inc., Dover Corporation, Dril-Quip, Inc., Emerson Process Management, FlowServ Corp., FMC Technologies, Inc., GE Oil & Gas Group, Stream-Flo Industries Ltd., National Oilwell Varco Inc., Zy-Tech Global Industries company, Flotek Industries, Inc., Pibiviese, Robbins & Myers Fluid Management Group, SPX Corporation�� Flow Technology Segment, Tyco International Ltd., Weatherford, Ltd., Ariel Corporation, Compressor Engineering Corporation, Demag, Dresser-Rand Company, FS-Elliott Company LLC, Endyn Energy Dynamics, Hoerbiger Group and IR Air Solutions.

Advisors' Opinion:
  • [By Dan Caplinger]

    Still, Schlumberger has plenty of ammunition of its own to bolster its growth. The company recently closed on its OneSubsea joint venture with Cameron International (NYSE: CAM  ) to take even greater advantage of opportunities in subsurface production. With Cameron's design, manufacturing, and installation experience, Schlumberger hopes to bolster its own expertise in completing subsea wells and providing reliable equipment and give clients an integrated solution for their sea-drilling needs.

  • [By Isac Simon]

    The muscles behind the brains
    Who helps in developing these resources? This is where the technological expertise of oilfield-services companies is required. And the best among them are Halliburton (NYSE: HAL  ) and Cameron International (NYSE: CAM  ) . Halliburton's well-construction and drilling teams seem to have a definite edge over other players in the industry. The services extend from well-bore evaluation to well-completion methods. The entire gamut of services is on offer. Cameron's well-surface equipment, as well as services for high-pressure, high-fluid volume fracturing, flowback operations and well testing, are industry standards.

  • [By Ben Levisohn]

    It wasn’t all good news, however. Healthways�(HWY) plunged 30% to $11.41, making it the S&P 1500′s biggest loser, while�Cameron International (CAM) fell 18% to $53.25, making it the S&P 500′s weakest stock. Both released disappointing earnings reports this week.

Best Defensive Companies To Own For 2015: QCR Holdings Inc.(QCRH)

QCR Holdings, Inc., through its subsidiaries, provides commercial and consumer banking, and trust and asset management services for the Quad City, Cedar Rapids, and Rockford communities. The company accepts deposits and invests in loans/leases and securities. Its deposit products comprise interest bearing deposits, non-interest bearing and interest bearing demand deposits, savings deposits, time deposits, and brokered time deposits. The company also offers a range of commercial and retail lending and investment services to corporations, partnerships, individuals, and government agencies. Its loan portfolio comprises commercial loans, including loans to wholesalers, manufacturers, building contractors, business services companies, other banks, and retailers; business loans, which include lines of credit for working capital and operational purposes; term loans for the acquisition of facilities, equipment, and other purposes; commercial real estate loans; and consumer loans c omprising motor vehicle, home improvement, home equity, and signature loans, as well as small personal credit lines. In addition, the company engages in the direct financing lease contracts; holding the real estate property; and issuing various trust preferred securities. QCR Holdings was founded in 1993 and is headquartered in Moline, Illinois.

Advisors' Opinion:
  • [By Tim Melvin]

    QCR Holdings (QCRH) is another bank that has consistently had a lower return on assets than its peer group. The Illinois based bank has 9 offices and about $2.4 billion in total assets. The bank has an equity-to-assets ratio of just 7.4, which is well below the national average. The Illinois market has seen strong merger and acquisition activity in the past year, and this bank could become a target .

10 Best Stocks To Buy Right Now: Amsurg Corp.(AMSG)

AmSurg Corp., through its wholly owned subsidiaries, engages in the development, acquisition, and operation of ambulatory surgery centers in partnership with physicians in the United States. The company?s surgery centers perform colonoscopy and other endoscopy procedures in the area of gastroenterology; cataracts and retinal laser surgery in the area of ophthalmology; and knee and shoulder arthroscopy and carpal tunnel repair in the area of orthopedics. As of December 31, 2010, it owned interest in 204 surgery centers in 33 states and the District of Columbia, including 140 centers performed gastrointestinal endoscopy procedures, 37 centers performed ophthalmology surgery procedures, 19 centers were multiple specialties, and 8 centers performed orthopaedic procedures. AmSurg Corp. markets its surgery centers directly to patients; and referring physicians and third-party payors, such as health maintenance organizations, preferred provider organizations, other managed care o rganizations, and employers. The company was founded in 1992 and is headquartered in Nashville, Tennessee.

Advisors' Opinion:
  • [By Tom Lydon]

    Top holdings based on the index include Acadia Healthcare Companies (ACHC), Amsurg Corporation (AMSG), Brookdale Senior Living (BKD), Clarcor (CLC) and Community Health Systems (CYH).

  • [By Seth Jayson]

    AmSurg (Nasdaq: AMSG  ) is expected to report Q1 earnings on April 24. Here's what Wall Street wants to see:

    The 10-second takeaway
    Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict AmSurg's revenues will grow 13.6% and EPS will grow 4.0%.

  • [By John Reese]

    Indeed, in 2013, the Greenblatt-based portfolio has bounced back strong, returning more than 50%. Below is a look at its current holdings.

    EBIX, Inc. (EBIX)

    Western Refining (WNR)

    DirecTV (DTV)

    ITT Educational Services (ESI)

    Science Applications International (SAIC)

    Weight Watchers International (WTW)

    ConocoPhillips (COP)

    AmSurg Corp. (AMSG)

    PDL BioPharma (PDLI)

    AFC Enterprises (AFCE)

    Subscribe to Validea here��/p>

10 Best Stocks To Buy Right Now: International Star Inc (ILST)

International Star, Inc., incorporated October 28, 1993, is primarily engaged in the acquisition and exploration of precious and base metals mineral properties. The Company�� properties are located in Arizona. As of December 31, 2010, the Company held 43 claims in the adjacent northern Black Mountains in Mohave County, and its current exploration activities are focused on these claims and surrounding areas of interest. As of September 1, 2010, the Company no longer held any mining claims in its former Wikieup property. The Wikieup Property formerly consisted of 42 lode claims comprising approximately 840 acres in the Hualapai Mountain Range at Wikieup, Arizona.

Mohave County, Arizona Property

The mineral property consists of approximately 1.4 square miles of land located in the northern Black Mountains in Mohave County, Arizona, approximately 56 miles from Las Vegas, Nevada, and 22 miles south of the Hoover Dam on United States Highway 93 (the Black Mountains Property). The property is easily accessed by partially paved entry off Highway 93 and has availability to electricity and water. Its Black Mountains Property consists of approximately 43 lode claims. Its claim holdings in this area began with placer claims in the adjacent Detrital Wash area. The Black Mountains Property is underlain by three basic rock units or packages of rocks. The oldest rock unit consists of Precambrian schist and gneissic rocks, which are the reconstituted (metamorphic) equivalents of former shale, siltstone, and volcanic rocks.

The property exhibits features of a metamorphic core complex. These features include the somewhat arch-like, cross-sectional (east-west) profile of this area of the Black Mountains, detached cover rocks, a preponderance of shallow-dipping penetrative structures (foliations) in the plutonic/metamorphic basement, and the composition of the plutonic rocks. The Company�� exploration efforts are primarily focused on the establishment of gold reserves with a seco! ndary focus on copper and other minerals. During the year ended December 1, 2010, the Company conducted drilling and additional sampling and mapping work on certain areas of its Black Mountains Property showing high mineralization results. During 2010, it allowed approximately 60 of its previously filed claims to expire and added approximately 25 claims covering nearby areas.

Advisors' Opinion:
  • [By Peter Graham]

    Small cap mining stocks International Star Inc (OTCMKTS: ILST) and Mining Minerals of Mexico Corp (OTCMKTS: WIIM) sank 13.33% and 24.9%, respectively, today, with at least one of these small cap stocks being the subject of paid promotions or investor relations type of activities while the other has had no news since last summer. So should you dig into these small cap mining stocks which just dug a hole for investors and traders alike? Here is a closer look to help you decide:

10 Best Stocks To Buy Right Now: Customers Bancorp Inc (CUBI)

Customers Bancorp, Inc. (Customers Bancorp), incorporated in April 2010, through its wholly owned subsidiary Customers Bank (the Bank), provides financial products and services to small businesses, not-for-profits and consumers through its fourteen branches in Southeastern Pennsylvania (Bucks, Berks, Chester and Delaware Counties), Rye, New York (Westchester County) and Hamilton, New Jersey (Mercer County). Customers Bank also provides liquidity to the mortgage market worldwide through the operation of its mortgage warehouse business. As of December 31, 2011, Customers Bancorp had total assets of $2.08 billion, including net loans (including held for sale loans) of $1.50 billion, total deposits of $1.58 billion. The Company offers a range of banking products and financial services to its commercial and consumer customers in Suburban Philadelphia, Pennsylvania, Central New Jersey and Southeastern New York. It offers a range of lending products to cater to its customers��needs, including small business loans, mortgage warehouse loans, multi-family and commercial real estate loans, residential mortgage loans and consumer loans. It also offers traditional depository products, including commercial and consumer checking accounts, non-interest-bearing demand accounts, money market deposit accounts, savings accounts and time deposit accounts and cash management services. On September 17, 2011, Customers Bank became a wholly owned subsidiary of Customers Bancorp. On September 17, 2011, Customers Bancorp acquired Berkshire Bancorp, Inc. and its subsidiary Berkshire Bank. In May 2013, Customers Bancorp Inc merged with CMS Bancorp Inc.

Lending Activities

The Company focuses its lending efforts to the lending areas, such as commercial lending, which includes business, small business and multi-family and commercial real estate lending; specialty Lending, which include warehouse lending, and consumer lending, which include local market mortgage lending and home equity lending. It also pr! ovide warehouse financing worldwide and multi-family lending in the Mid-Atlantic States.

The Bank�� commercial lending is segmented into three groups, which include multi-family and commercial real estate, business banking and small business banking. The small business banking platform originates loans, including small business administration loans, through the branch network sales force and a team of dedicated small business relationship managers. During the year ended December 31, 2011, it originated and closed $121.5 million of multi-family loans commitments. As of December 31, 2011, it had $536.9 million in commercial loans outstanding, comprising approximately 35.3% of its total loan portfolio (which includes loans held for sale). During 2011, it originated and closed $167.7 million of commercial loans and commitments. As of December 31, 2011, loans in its warehouse lending portfolio, as well as loans held for sale totaled $794.3 million outstanding, comprising approximately 52.3% of its total loan portfolio (which includes loans held for sale). During the year ended December 31, 2011, it funded $7.7 billion of mortgage loans under warehouse facilities.

The Company offers a range of deposit products to its customers, including checking accounts, savings accounts, money market accounts and other deposit accounts, including fixed-rate, fixed-maturity retail time deposits ranging in terms from 30 days to five years, individual retirement accounts, and non-retail time deposits consisting of jumbo certificates greater than or equal to $100,000. As of December 31, 2011, its deposit portfolio was consisted of 54.9% of core deposits. Its financial products include Internet banking, wire transfers, electronic bill payment, lock box services, remote deposit capture services, courier services, merchant processing services, cash vault, controlled disbursements, positive pay and cash management services (including account reconciliation, collections and sweep accounts).

! Sources o! f Fund

The Company offers a range of deposit accounts, including checking, savings, money market and time deposits. Deposits are obtained primarily from its service area. As of December 31, 2011, the total deposits grew to $1.58 billion.

Investment Activities

The Company�� investment securities portfolio consists of United States Treasury, government agency and mortgage-backed securities (guaranteed by an agency of the United States government and non-agency guaranteed), municipal securities, domestic corporate debt, and asset-backed securities. In addition to generating revenue, it maintains the investment portfolio to manage interest rate risk, provide liquidity, provide collateral for other borrowings and diversify the credit risk of earning assets. As of December 31, 2011, $79.1 million of its investment securities were classified as available for sale (AFS). As of December 31, 2011, the fair value of its investment securities portfolio was approximately $409.9 million. As of December 31, 2011, it held $319.5 million of investment securities that were classified as held to maturity (HTM).

Advisors' Opinion:
  • [By Rich Smith]

    Wyomissing, Pa.-based Customers Bancorp (NASDAQ: CUBI  ) has a new CFO.

    On Tuesday, Customers Bancorp announced that Interim Chief Financial Officer James D. Hogan�intends to retire from the bank on Aug. 13. Replacing Hogan will be Robert E. Wahlman, a new hire from Doral Financial, who will join Customers initially in the post of executive vice president on Aug. 5, and then be promoted to permanent CFO on the 13th.

10 Best Stocks To Buy Right Now: Digital Power Corp (DPW)

Digital Power Corporation (Digital), incorporated in 1969, is a solution-driven organization that designs, develops, manufactures and sells high-grade customized and flexible power system solutions for the demanding applications in the medical, military, telecom and industrial markets. It also has a wholly owned subsidiary, Digital Power Limited (DPL), which operates under the brand name of Gresham Power Electronics (Gresham). DPL is located in Salisbury, England, and it designs, manufactures and sells power products and system solutions mainly for the European marketplace, including power conversion, power distribution equipment, direct current/active current (DC/AC) inverters and uninterrupted power supply (UPS) products. DPL�� defense business has specialists in the field of naval applications of power distribution conversion. It markets and sells its products to many diverse market segments, including the telecom, industrial, medical and military/defense industries. Its products serve a global market, with an emphasis on North America and Europe. The Company offers a product variety, including a full custom product design and production, high-speed switching power front-end, modified-standard and value added products, open-frame, Compact-PCI, ATSC front-ends and power over Ethernet (PoE) product solutions, providing power output from 50 to 24,000 watts. On June 16, 2011 the Company has acquired Telkoor Telecom Ltd.

Power System Solutions

The Company provides custom power system solutions, high-grade flexibility series power supply products and value-added services to diverse industries and markets, including military/defense, telecom, medical and industrial. It provides high-grade custom power system solutions to numerous customers in multiple industry segments. Each custom solution that it develops is based on high power density and a special layout to meet each of its customer�� operation environments where efficiency, size and performance are key.

Di! gital Power Limited (Gresham Power Electronics)

DPL designs, manufactures, and distributes switching power supplies, uninterruptible power supplies, and power conversion and distribution equipment frequency converters for the commercial and military markets, under the name Gresham. Frequency converters manufactured by Gresham are used by navel warships to convert their generated 60-cycle electricity supply to 400 cycles. This 400-cycle supply is used to power their critical equipment such as gyro, compass, and weapons systems. Gresham also designs and manufactures transformer rectifiers for naval use. Typically, these provide battery supported back up for critical DC systems, such as machinery and communications. In addition, higher power rectifiers are used for the starting and servicing of helicopters on naval vessels, and Gresham supplies these as part of overall helicopter start and servicing systems.

The Company competes with Power-One, Emerson (Astec) Technologies, Inc., Lambda Electronics, and Mean-Well Power Supplies.

Advisors' Opinion:
  • [By Robert Wall]

    One of the country�� largest employers with more than 150,000 staff, Royal Mail has shifted away from letters to more lucrative package shipping, competing with TNT Express NV (TNTE) of the Netherlands and Deutsche Post AG (DPW)�� DHL Express.

10 Best Stocks To Buy Right Now: Cigna Corp (CI)

Cigna Corporation (Cigna), incorporated on November 3, 1981, is a holding company. Cigna is a global health service company, with insurance subsidiaries that are providers of medical, dental, disability, life and accident insurance and related products and services. In the United States, these products and services are offered through employers and other groups, and in selected international markets, Cigna offers supplemental health, life and accident insurance products and international health care coverage and services to businesses, governmental and non-governmental organizations and individuals. The Company also has certain run-off operations, including a Run-off Reinsurance segment. Cigna�� revenues are derived from premiums, fees, mail order pharmacy, other revenues and investment income. Cigna operates in five segments: Health Care, Disability and Life, International, Run-off Reinsurance, and Other Operations, including Corporate-owned Life Insurance. On January 31, 2012, Cigna acquired HealthSpring, Inc. On November 30, 2011, the Company acquired FirstAssist Group Holdings Limited. In August 2012, the Company acquired Great American Supplemental Benefits from American Financial Group, Inc. In January 2013, the Company acquired select Arcadian and Humana Medicare Advantage plans in Arkansas, Oklahoma and Texas. In September 2013, Cigna Corporation completed its acquisition of Alegis Care, a portfolio company of Triton Pacific Capital Partners. Effective September 3, 2013, Cigna Corp acquired Home Physicians Management LLC.

Health Care

Cigna�� Health Care segment (Cigna HealthCare) offers insured and self-insured medical, dental, behavioral health, vision, and prescription drug benefit plans, health advocacy programs and other products and services that may be integrated to provide health care benefit programs. Cigna HealthCare companies offer these products and services in all 50 states, the District of Columbia and the United States Virgin Islands. Cigna offers a ! range of products and services to employers and other groups that sponsor group health plans. With the exception of Health Maintenance Organization (HMO), Medicare, Voluntary and stop loss products, each of Cigna HealthCare�� products is offered with alternative funding options. Cigna may sell multiple products under the same funding arrangement to the same employer. Approximately 85% of the Company�� medical customers are enrolled in self-insured plans, with the remainder split between guaranteed cost and experience-rated insured plans. Approximately 90% of its medical customers are enrolled in self-insured and experience-rated plans. Cigna also offers guaranteed cost medical and dental insurance to individuals. Cigna HealthCare offers a product line of indemnity managed care benefit plans on an insured (guaranteed cost or experience-rated) or self-insured basis. The Network, Network Open Access, and Open Access Plus In-Network products cover only those services provided by Cigna HealthCare participating health care professionals (in-network) and emergency services provided by non-participating health care professionals (out-of-network). The Network point of service (POS), Network POS Open Access and Open Access Plus plans (OAP) cover health care services provided by participating, and non-participating health care professionals.

Cigna HealthCare offers a Preferred Provider Plans (PPO) product line that features a national network. Like Network and Open Access Plus Plans, the PPO product line is offered on an insured (guaranteed cost or experience-rated) or self-insured basis. Cigna HealthCare offers the Cigna Choice Fund suite of products, including Health Reimbursement Accounts (HRA), Health Savings Accounts (HSA) and Flexible Spending Accounts (FSA). Cigna HealthCare offers stop loss insurance coverage for self-insured plans. This stop loss coverage reimburses the plan for claims in excess of a predetermined amount, either for individuals (specific) or the entire group (aggregate), ! or both. ! Cigna HealthCare provides Taft-Hartley trusts and other entities access to its national provider network and provides claim re-pricing and other services. Cigna HealthCare�� voluntary medical products are offered to employers with 51 or more eligible employees. As a result of the acquisition of HealthSpring, Cigna operates Medicare Advantage coordinated care plans in 11 states and the District of Columbia. Under the Medicare program, Medicare-eligible beneficiaries may receive health care benefits, including prescription drugs, through a managed care health plan, such as the Company�� coordinated care plans, and The Centers for Medicare and Medicaid Services reimburse the Company pursuant to a risk adjustment payment methodology.

Cigna�� Medicare Part D prescription drug program, Cigna Medicare Rx, provides a number of plan options, as well as service and information support to Medicare and Medicaid eligible customers. Cigna Medicare Rx is available in all 50 states and the District of Columbia. Cigna HealthCare offers medical management, disease management, and other health advocacy services to employers and other plan sponsors. These services are offered to customers covered under Cigna HealthCare administered plans, as well as individuals covered under plans insured and/or administered by competing insurers/third-party administrators. Cigna�� onsite services include more than 75 health centers and the annual administration of more than 400,000 biometric screenings, as well as approximately 2,200 wellness seminars each year. As a result of the acquisition of HealthSpring, Cigna operates three LivingWell Health Centers, where Medicare customers can receive care from physicians, nurse practitioners, nurses, pharmacists, and nurses educators. Cigna arranges for behavioral health care services for customers through its network of participating behavioral health care professionals. Cigna offers behavioral health care case management services, employee assistance programs (EAP), and wor! k/life pr! ograms to employers, Government entities and other groups sponsoring health benefit plans. As of December 31, 2011, Cigna�� behavioral national network had approximately 108,000 access points to psychiatrists, psychologists and clinical social workers and approximately 9,000 facilities and clinics.

Cigna Pharmacy Management offers prescription drug plans to its insured and self-funded customers both in conjunction with its medical products and on a stand-alone basis. With a network of over 62,000 contracted pharmacies, Cigna Pharmacy Management is a pharmacy benefits manager (PBM) offering clinical integration programs, specialty pharmacy solutions and home delivery of prescription medicines. Cigna�� specialty pharmacy outcome management program, TheraCare, manages specialty conditions. TheraCare is coordinated with other Cigna health advocacy programs and all data is captured for analysis and reporting. Cigna Dental Health offers a variety of dental care products, including dental health maintenance organization plans (Dental HMO), dental preferred provider organization (DPPO) plans, dental exclusive provider organization plans, traditional dental indemnity plans and a dental discount program. As of December 31, 2011, Cigna Dental Health customers totaled approximately 10.9 million. Managed dental care products are offered in 38 states for Dental HMO and 43 states and the District of Columbia for Dental PPO through a network of independent health care professionals that have contracted with Cigna Dental Health to provide dental services. Cigna Dental Health customers access care from the dental PPO network in the United States and one of the dental HMO networks in the United States, with approximately 235,500 DPPO-contracted access points (approximately 92,000 health care professionals) and approximately 58,000 dental HMO-contracted access points (approximately 16,500 health care professionals).

Disability and Life

Cigna�� Disability and Life segment (Cign! a Disabil! ity and Life) provides insurance products and their related services, such as group long-term and short-term disability insurance, group life insurance and accident and specialty insurance. These products and services are provided by subsidiaries of Cigna Corporation. Cigna Disability and Life markets products in all 50 states, the District of Columbia, Puerto Rico, the United States Virgin Islands and Canada. Cigna Disability and Life also provides assistance to employees in returning to work and assistance to their employers in managing the cost of employee disability. Cigna Disability and Life offers personal accident insurance coverage, which consists primarily of accidental death and dismemberment and travel accident insurance to employers. Group accident insurance may be employer-paid or employee-paid. Cigna Disability and Life also offers specialty insurance services that consist primarily of disability and life, accident, and hospital indemnity products to professional or trade associations and financial institutions.

International

CIGNA�� International segment (CIGNA International) offers supplemental health, life and accident insurance products, as well as international health care products and services. These products and services are provided by subsidiaries of Cigna Corporation, including foreign operating entities. Cigna International provides employers, affinity groups and individuals with local and global health care and related financial protection programs. Supplemental health products provide a specified payment for a range of health risks and include personal accident, accidental death, critical illness, hospitalization, travel, dental, cancer and other dread disease coverages. Term life, as well as variable universal life insurance and other savings products are also included in the product portfolio. Cigna International�� supplemental health, life and accident insurance products are offered in South Korea, Taiwan, Indonesia, Hong Kong, the European Un! ion, Chin! a, New Zealand, Thailand and Turkey. In China, Cigna International owns a 50% interest in a joint venture through, which its products and services are offered. Cigna International�� health care businesses primarily consist of products and services to meet the needs of local and multinational companies and organizations and their local and globally mobile employees and dependents. These products and services include insurance and administrative services for medical, dental, vision, life, accidental death and dismemberment, and disability risks. In addition, Cigna International�� health care businesses include products and services, which are primarily provided through group benefits programs to employees of businesses and other organizations in the United Kingdom and Spain. These products and services include medical indemnity insurance coverage, with some offerings having managed care or administrative service aspects.

Run-off Reinsurance

Cigna�� reinsurance segment reinsured guaranteed minimum death benefits (GMDB) (also known as variable annuity death benefits (VADBe)), under certain variable annuities issued by other insurance companies. These variable annuities are investments in mutual funds combined with a death benefit. The Company purchased retrocessional protection that covers approximately 5% of the assumed risks. The Company also maintains a dynamic hedge program. Cigna also reinsured guaranteed minimum income benefits (GMIB) under certain variable annuities issued by other insurance companies. These variable annuities are investments in mutual funds combined with minimum income and death benefits. These products under Cigna�� Run-off Reinsurance segment were sold principally in North America and Europe through a sales force and through intermediaries.

Other Operations

The principal products of the Corporate-owned Life Insurance (COLI) business are permanent insurance contracts sold to corporations to provide coverage on the lives ! of certai! n employees for the purpose of funding employer-paid future benefit obligations. The principal services provided by the COLI business are issuance and administration of the insurance policies. COLI policies provide a death benefit for which Cigna collects fees to cover mortality risk. COLI policies also allow policy owners to borrow against a portion of their cash surrender value.

Advisors' Opinion:
  • [By Sean Williams]

    This is one of the primary reasons we witnessed WellPoint (NYSE: WLP  ) and CIGNA (NYSE: CI  ) jockeying for position in the Medicaid arena by purchasing AMERIGROUP and HealthSpring, respectively, in 2012 and 2011. Government-run health care may not provide the beefiest margins, but it's more than made up for with the sheer volume of new Medicaid patients expected to enter the system next year.

10 Best Stocks To Buy Right Now: Colonial Municipal Income Trust (CMU)

MFS High Yield Municipal Trust operates as a nondiversified, closed-end management investment company. The trust invests primarily in medium and lower quality bonds and notes issued by or on behalf of state and local government units. Its portfolio primarily comprises investments in health care, tax-backed, utilities, transportation, housing, education, industrials, resource recovery, industrial, manufacturing, oil and gas, and refunded/escrowed sectors. Columbia Management Advisors, Inc. serves as the investment advisor of the trust. The trust was formerly known as Colonial Municipal Income Trust and changed its name to MFS High Yield Municipal Trust in 2007. MFS High Yield Municipal Trust was founded in 1987 and is based in Boston, Massachusetts.

Advisors' Opinion:
  • [By Paul McWilliams]

    Marvell (MRVL) is clearly carrying a big zit on its forehead from the ongoing legal battle with Carnigie Mellon University (CMU). A jury awarded CMU damages slightly in excess of $1B, and the judge could triple that.

10 Best Stocks To Buy Right Now: National Australia Bank Ltd (NAB)

National Australia Bank Limited provides products, advice and services. In Australia, it operates through National Australia Bank, MLC and UBank. In the United Kingdom, it operates through Clydesdale Bank. In New Zealand, it operates through Bank of New Zealand. In the United States, it operates through Great Western Bank. Segments include Business Banking, Personal Banking, Wholesale Banking, UK Banking and NZ Banking, MLC and NAB and Great Western Ban. As of April 5, 2012, the Company and its associated entities ceased to be a substantial holder in BlueScope Steel Limited. On May 17, 2012, it ceased to be a substantial holder in Spark Infrastructure Group and Sandfire Resources NL. As of August 24, 2012, the Company and its associated entities ceased to be holder in Tabcorp Holdings Limited. In September 2012, the Company and its associated entities have ceased to be a substantial holder in Incitec Pivot Limited, as of August 30, 2012. Advisors' Opinion:
  • [By Yoshiaki Nohara]

    Alacer Gold Corp. sank 4.1 percent in Sydney as the price of the precious metal declined. Honda Motor Co. (7267) lost 0.6 percent after Japan�� third-largest carmaker reported second-quarter profit that missed analysts��estimates amid slowing motorcycle sales in Southeast Asia. National Australia Bank Ltd. (NAB) retreated 2.3 percent as expenses climbed at the country�� largest lender by assets.

Amy Webber, Cambridge's Optimist: The 2014 IA 25 Extended Profile

“Starting with the fact that we can’t control things like the market and economy or regulation, I’m wildly optimistic about our industry,” Amy Webber, president of Cambridge Investment Research, began our interview. “I just believe that the independent model is extremely resilient. Whatever those things deliver us, as well as the future, we as a whole will adapt.”

With that “the future is bright” spirit, Webber and her team at Cambridge are focusing on what it can do today to strengthen the industry in the future. The firm has continued to build its infrastructure to support the next generation of advisors, including the Synergy Exchange mentoring program that “just celebrated its first anniversary.”

“We started Synergy Exchange a year ago in the female advisor space,” Webber explained, “but have recently expanded it because we realized we could replicate the need for mentoring to the next generation as a whole.”

Furthermore, discussions with advisors who were concerned about losing clients and assets in the wealth transfer that’s “coming in the next five to 10, 15 years” led to a reverse mentoring program where established advisors are counseled by a younger or female advisor.

“We have many advisors that we’ve talked to, that have been in the advisory business 20-plus years, who are interested in exploring whether or not some reverse mentoring or being mentored to some extent by a female makes sense, given their better view into the psychology of the investors that they should be thinking about,” Webber said.

That reverse mentoring program is brand-new, Webber said in our April interview: “We’ve expanded it within the last 90 days or so. We have a lot of enthusiasm around those advisors who realize that while it isn’t going to happen tomorrow, they do need to start planning.”

Unless, of course, they’re planning on selling their practice soon. “If they’re in a phase of succession planning where they’re getting out in the next, say, one to three or four years, then it’s probably someone else’s challenge to figure out how to make the business survive,” Webber said. However, “In most cases, independent advisors plan on working until they can’t,” she added, so the new program has been met with “a lot of enthusiasm.”

While the reverse mentoring program is brand-new, Cambridge’s focus on the next generation of advisors isn’t. “We’ve done a really good job over the last five years of getting the 60-something advisor to recognize that they need a 40-something advisor,” Webber said. “Now we need to get those 60- and 40-somethings to realize that they can get value out of the 20-something.”

Cambridge has worked hard to give those 20-somethings a platform, too. “Last year, we had 20 students from Arizona State University come to our national conference, and we introduced them to our advisors who were interested in having interns,” Webber explained. “This year we’re in Chicago, and the target is to have 40 to 50 students from the Chicago area who are interested in financial services or financial planning.”

Those students will attend Cambridge’s national conference for half a day, then the firm will set up interviews with advisors who are interested in having interns.

Also helping shape Cambridge’s view of the future is the New Century Council, an advisory council of advisors in their mid-40s who consult on “what the broker-dealer partner of the future needs to look like so that they can serve the next-gen investor.”

“What we’re spending our time on over the last 12 to 18 months with that group is [discussing what] the unique business models” that will exist in the near future will look like. “How do we as a service provider build service models and technology, the infrastructure basically, to customize our service model around their business model?” Webber said.

One answer to that question is WealthPort, a “huge project” Cambridge undertook last year to “build a technology and service platform for our managed account solutions.” With WealthPort, advisors will have an integrated system of tools to help them serve their clients, “from the very beginning where a proposal is being generated to performance reporting and everything in between,” Webber said. “It will serve the rep-as-portfolio-manager concept, but it will also serve the advisor who we believe will continue to grow who are choosing to use a third-party platform.”

Webber recently joined the board of directors at the Financial Services Institute and said she’s “very enthusiastic about giving back to our industry through that venue because I do believe that FSI is a huge advocate for the independent model.”

She’s currently preparing for an FSI event that will put broker-dealer executives and representatives in front of regulators on Capitol Hill, and Cambridge is “subsidizing some costs so that I can take between seven and 10 of our top-producing advisors to Capitol Hill with me,” Webber said. “It is highly critical that we get our advisors in the independent space in front of legislators and regulators. FSI and the broker-dealers can continue to do a great job of advocating for them, but there’s nothing more powerful than putting one of our Cambridge advisors, who are solely out there—just like the regulators want them to be—to protect and serve the end client, in front of them.”

(Check out Investment Advisor's full IA 25 for 2014 list on ThinkAdvisor.)

The 10 Most Stolen Luxury Cars

NEW YORK (TheStreet) -- Getting your car stolen is a terrible experience. Not only are you losing (possibly) you main method of transportation, but you're also out a significant amount of money. When you spent upward of $30,000 on a car, you stand to lose a lot if someone decides to steal it.

This top ten list shows which luxury vehicles are stolen the most, and how many of them were stolen between 2009 and 2012. The numbers come from the National Insurance Crime Bureau. For some reason, it seems that criminals really like German luxury cars, with fully half of the list coming from German manufacturers BMW and Mercedes-Benz.

10. Mercedes-Benz S Class, 163 stolen

With 163 vehicles stolen between 2009 and 2012 the Mercedes-Benz S-Class comes in at the bottom of the list. It's also the most expensive car from Mercedes-Benz to make it on the list, with two less expensive sedans taking higher spots. The S-Class starts at $92,900 and currently only comes in one model, the S550. The 2014 S550 comes with a 4.6L biturbo V-8 engine with 449 horsepower. Possibly contributing to its low rank on the list is the standard Mercedes-Benz mbrace2 that turns the car into a Wi-Fi hotspot and lets drivers control some aspects of the car from their smartphone.

9. Lexus IS, 117 stolen

The Lexus IS is ninth on the list with 117 vehicles stolen between 2009 and 2012.

The 2014 Lexus IS line starts at $36,100 with the IS 250, though the most expensive model, the IS 350 F Sport, starts at $43,585. Between those two models are the IS 250 F Sport that starts at $39,565, and the IS 350 that starts of $36,615. Engine options include a 2.5L, 3.5L, and a 5.0L option, with horsepower ranging from 204 HP to 416 HP.

Must read: The 10 Most Expensive Cars Ever Sold At Auction

8. Acura TSX, 190 stolen

Eighth on the list of most stolen luxury cars is the Acura TSX, which was stolen 290 times from 2009 to 2012.

The Acura TSX is the cheapest car on this list, with the base model starting at $30,635. That's still a lot to spend on a car for most people, though. That base model sedan comes with a 2.4L engine with 201 HP. Acura offers an option to upgrade to a 3.5L engine with 280 HP. There's also a station wagon option that starts at $31,985.

Must read: The 10 Most Expensive Cars Ever Sold At Auction

7. Lincoln MKZ. 226 stolen

The Lincoln MKZ makes it to number seven on the list with 226 vehicles stolen from 2009 to 2012.

The only car from Lincoln to appear on the list, the Lincoln MKZ starts a $35,190 for the base model. The base MKZ has a 2.0L, 240 HP engine. The next step up comes with a 3.7L V6 engine with 300 HP for $36,420.

Must read: The 10 Most Expensive Cars Ever Sold At Auction

6. BMW 5 Series, 256 stolen

At number six is the BMW 5 Series, which was stolen 256 times between 2009 and 2012.

Starting at $49,500 The BMW 5 Series is the more expensive BMW vehicle on the list. The 5 Series can come with a 2.0L, 3.0L, or 4.4L engine, with horsepower ranging from 240 HP to 445 HP. For the 2014 model BMW currently offers a total of seven different models of for the 5 Series: Sedan, Touring, Gran Turismo, xDrive Sedan, xDrive Touring, M5 Sedan, and ActiveHybrid.

Must read: The 10 Most Expensive Cars Ever Sold At Auction

5. Cadillac CTS, 326 stolen

The Cadillac CTS was the fifth most stolen luxury car in the U.S. between 2009 and 2012, with criminals taking 326 of them in a few years.

The 2014 Cadillac CTS starts at $34,495 for the base model vehicle. It can come with a 2.L, 3.0L, or 3.6L engine, with horsepower ranging from 270 HP to 420 HP. Cadillac currently offers six models in the CTS line: CTS Coupe, CTS-V Coupe, CTS Sedan, CTS-V Sedan, CTS Sport Wagon, and CTS-V Wagon.

Must read: The 10 Most Expensive Cars Ever Sold At Auction

4. Mercedes-Benz E Class, 381 stolen

From 2009 to 2012 car thieves stole a total of 381 Mercedes-Benz E-Class sedans. Fittingly, the middle-of-the-pack Mercedes-Benz sedan in terms of price also falls between its brethren on this list, and fourth overall.

The E-Class Sedan starts at $51,400 for the base model. It's the only hybrid car that Mercedes-Benz currently offers, though only one of its six models offers a hybrid engine. The E-Class also comes in a diesel model for those who prefer it.

Must read: The 10 Most Expensive Cars Ever Sold At Auction

3. Infiniti G Series, 405 stolen

Third on the list of most-stolen luxury cars is the Infiniti G Series. A total of 405 G Series cars were stolen between 2009 and 2012.

The G Series follows the general trend of less expensive cars being stolen more often. The base model 2014 G37 Journey starts at $32,950. The Infiniti G37X AWD costs a bit more, starting at $34,550. Both vehicles have a 3.7L V6 engine with 328 HP, with the main standard difference being the all-wheel drive available in the latter model.

Must read: The 10 Most Expensive Cars Ever Sold At Auction

2. BMW 3 Series, 471 stolen

The BMW 3 Series comes in at a close second on this list with a total of 471 cars stolen between 2009 and 2012. Unfortunately, we don't know the breakdown by model, so we can't say if the hybrid, sedan, or convertible is more likely to get stolen.

The current 2014 model of the BMW 3 Series starts at $32,750 making the less expensive of the two BMW cars on this list. The car is available with either 2.0L or 3.0L, with horsepower ranging from 180 HP to 335 HP. BMW offer five different models of the 3 Series include the aforementioned Sedan, ActiveHybrid, Convertible, as well as the Touring and Gran Turismo.

Must read: The 10 Most Expensive Cars Ever Sold At Auction

1. Mercedes-Benz C Class, 485 stolen

With 485 vehicles stolen, the Mercedes-Benz C Class is the most stolen luxury vehicle in America. Of those 485 cars stolen, only 78 of them were never recovered.

Mercedes-Benz makes six different models of the C-Class, with the least expensive model starting at $35,800. It's the cheapest of the three sedans the company makes, all of which appear elsewhere on this list. We don't know why criminals prefer the C-Class, but if you're looking into one you might want to invest in a few security features.

Must read: The 10 Most Expensive Cars Ever Sold At Auction