4 Dividend Stocks Showing You the Money

Dividend checks continue to get fatter in corporate America, as more companies jack up their distribution rates.

Readers of the Income Investor newsletter can certainly appreciate that kind of thinking. Let's take a closer look at some of the companies that inched their payouts higher these past few days.

We can start with PotashCorp  (NYSE: POT  ) . The leading provider of crop nutrients is also fertilizing its quarterly distributions. PotashCorp's rate is going from $0.28 a share to $0.35 a share. It's a big move, but investors should be used to this by now. The company has come through with five increases over the past two years.

Safeway (NYSE: SWY  ) stakeholders are also checking out. The grocery store operator is boosting its quarterly dividend 14% to $0.20 a share. The 1,641-unit chain is pumping up its yield at a time when weaker rivals have been slashing their disbursements. Troubled competitor SUPERVALU stopped paying distributions altogether last year, even though a recent asset sale may pave the way for a brighter future.

KeyCorp (NYSE: KEY  ) is also banking on bigger withdrawals. The financial services provider with $89.2 billion in assets is pushing its quarterly rate 10% higher to $0.055 a share. It's not the only way that KeyCorp is returning money to its shareholders. A $426 million share repurchase plan was approved two months ago.

Finally, we have Southwest Airlines (NYSE: LUV  ) taking off. The popular airline where bags fly free is boosting its quarterly dividend 33% to $0.04 a share. Southwest is also increasing its share buyback authorization from $1 billion to $1.5 billion.

Why not? Airlines are flying high again as sector consolidation is boosting airfares and cheaper jet fuel is resulting in widening profit margins. Analysts see Southwest's earnings nearly doubling this year.

Checks and balances
Subscribers to the Income Investor newsletter can appreciate the companies sending more and more money to their investors. The newsletter singles out companies that are committed to growing their distributions with market-thumping results. A 30-day trial subscription will let you see if it's right for you.

If you're looking for some long-term investing ideas, you're invited to check out The Motley Fool's special report "The 3 Dow Stocks Dividend Investors Need." It's absolutely free, so simply click here now and get your copy today.

The Clearwire Bidding War Erupts

The DISH Network (NASDAQ: DISH  ) , Clearwire (NASDAQ: CLWR  ) , Sprint (NYSE: S  ) , Softbank M&A extravaganza continues to become more confusing and fun to watch. As the CFIUS clears, the Japanese bank for its proposed acquisition of telecom Sprint, competing bidder DISH, which also has a bid for Clearwire, which is also being bid on by Sprint, has now refocused on its offer for Clearwire, raising it substantially above its competitor's offer. The news has various stock moving in various directions, with Clearwire shareholders the latest winners. If you are trying to play this acquisition merry-go-round, good luck because -- like this paragraph -- the story is all over the place.

Organizing thoughts
In case you haven't been watching this buyout dance, let's recap.

Sprint is a major holder of Clearwire. Clearwire has been a struggling operation for some time now, but it holds very valuable assets -- mainly spectrum. Clearwire uses Sprint financing to maintain operations while it is shopped around -- mainly to Sprint. Clearwire's board wants Sprint to take the prize, though shareholders have argued that the deal undervalues Clearwire shares. There have been proxy battles mounting for some time, led by Crest Financial.

DISH Network has been a busy little satellite provider, trying to build out its own broadband network. The company received approval from the FCC to launch a 4G network, but it needs more spectrum and/or a platform to launch its $4+ billion Herculean effort to enter the densely populated, fiercely competitive space. DISH has put in offers for Clearwire, as well as Sprint. As the Sprint deal looks less and less likely (despite a superior per-share bid than competitor Softbank), DISH management seems to have reversed course and refocused on the Clearwire deal, upping its bid to $4.40 per share. Sprint's current offer is more than a dollar under that bid, enraging and enticing Clearwire shareholders. A DISH buyout would really benefit all three parties, at least for now. Clearwire minority holders get their premium share price, DISH gets its spectrum, and Sprint, a majority holder of Clearwire equity, can bank a profit on the stock as well.

So what does it mean?
The Clearwire board has delayed the shareholder vote scheduled for today to June 13. This allows for a greater bidding war (a possible motive for Clearwire management), more CEO-to-CEO banter, and speculation from quick-trading investors. Clearwire's stock currently trades a few cents under DISH's bid, setting the risk level high in case the offer is rejected. DISH is trading down a bit, though still near its 52-week high, implying investor confidence. Sprint remains near its highs as well. The fact that both Softbank and DISH so dearly want to buy the telecom signals to investors and analysts that there is indeed value to be had in the once-troubled company.

In the meantime, investors trying to play the action should proceed very carefully. If there is one thing we've learned from this long-running battle, it's that we know absolutely nothing until something actually happens. And that is a terrible investment thesis.

More from The Motley Fool 

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

 

5 Best Safest Stocks To Watch For 2014

What kind of investor are you? If you don't know, you might have a problem. It's useful to have a handle on your investment strategy, so that you can better focus on it.

There are many different ways to categorize investing. For example, a Goldilocks-like approach might divide investing strategies into these groups:

Too-aggressive investing: This approach puts your dollars in danger. It can include any of a host of riskier-than-average types of investments, such as options, commodities, currency bets, penny stocks, and even lottery tickets. It's true that some options strategies can be conservative, but many are not, and it's very, very common for options to expire unexercised and worthless.

Too-cautious investing: It might seem smart to be very conservative with your money, but if you do that, it might not grow enough to support you in retirement. That's especially true these days, in our environment of ultra-low interest rates. With inflation historically averaging about 3% annually in the U.S., even earning 2% in your bank account or via a bond or CD will leave you losing purchasing power over time.

Just-right investing: For many people, a long-term portfolio mixed with both stocks and bonds is a sound way to grow your net worth.

The bond world features many kinds of bonds, such as government bonds, municipal bonds, and corporate bonds. Government bonds, such as U.S. Treasury bills, bonds, and notes, are the safest, backed by the U.S. government. They pay interest that's taxable on your federal tax return, but is exempt from state and local taxes. Municipal bonds can be riskier, as some local governments are on somewhat shaky ground, but they can therefore offer higher interest rates and their interest is exempt not only from state and local taxes, but also from federal taxes. Corporate bonds are issued by companies that want to raise money. They, too, offer rates higher than government bonds, and their interest is not tax-exempt. In general, the higher their interest rate, the lower their credit rating and healthiness.

Stock investing approaches
A sound stock investment strategy is hard to beat, for long-term growth. Here's a quick rundown of some key approaches. Note that many investors engage in one or more of them -- they're not all mutually exclusive.

5 Best Safest Stocks To Watch For 2014: Goldman Sachs Group Inc.(The)

The Goldman Sachs Group, Inc., together with its subsidiaries, provides investment banking, securities, and investment management services to corporations, financial institutions, governments, and high-net-worth individuals worldwide. Its Investment Banking segment offers financial advisory, including advisory assignments with respect to mergers and acquisitions, divestitures, corporate defense, risk management, restructurings, and spin-offs; and underwriting securities, loans and other financial instruments, and derivative transactions. The company?s Institutional Client Services segment provides client execution activities, such as fixed income, currency, and commodities client execution related to making markets in interest rate products, credit products, mortgages, currencies, and commodities; and equities related to making markets in equity products, as well as commissions and fees from executing and clearing institutional client transactions on stock, options, and fu tures exchanges. This segment also engages in the securities services business providing financing, securities lending, and other prime brokerage services to institutional clients, including hedge funds, mutual funds, pension funds, and foundations. Its Investing and Lending segment invests in debt securities, loans, public and private equity securities, real estate, consolidated investment entities, and power generation facilities. This segment also involves in the origination of loans to provide financing to clients. The company?s Investment Management segment provides investment management services and investment products to institutional and individual clients. This segment also offers wealth advisory services, including portfolio management and financial counseling, and brokerage and other transaction services to high-net-worth individuals and families. In addition, it provides global investment research services. The company was founded in 1869 and is headquartered in New York, New York.

5 Best Safest Stocks To Watch For 2014: Petroleo Brasileiro S.A.- Petrobras(PBR)

Petroleo Brasileiro S.A. primarily engages in oil and natural gas exploration and production, refining, trade, and transportation businesses. The company?s Exploration and Production segment involves in the exploration, production, development, and production of oil, liquefied natural gas (LNG), and natural gas in Brazil. This segment supplies its products to the refineries in Brazil, as well as sells surplus petroleum and byproducts in domestic and foreign markets. Its Supply segment engages in the refining, logistics, transportation, and trade of oil and oil products; export of ethanol; and extraction and processing of schist, as well as holds interests in companies of the petrochemical sector in Brazil. The Gas and Energy segment involves in the transportation and trade of natural gas produced in or imported into Brazil; transportation and trade of LNG; and generation and trade of electric power. In addition, the segment has interests in natural gas transportation and d istribution companies; and thermoelectric power stations in Brazil, as well engages in fertilizer business. The Distribution segment distributes oil products, ethanol, and compressed natural gas in Brazil. The International segment involves in the exploration and production of oil and gas, as well as in supplying, gas and energy, and distribution operations in the Americas, Africa, Europe, and Asia. Further, the company involves in biofuel production business. Petroleo Brasileiro was founded in 1953 and is based in Rio de Janeiro, Brazil.

Advisors' Opinion:

• [By Dave Friedman]

  Institutional investors bought 78,663,680 shares and sold 101,125,380 shares, for a net of -22,461,700 shares. This net represents 0.23% of common shares outstanding. The number of shares outstanding is 9,872,826,100. The shares recently traded at $27.61 and the company’s market capitalization is $170,178,700,000.00. About the company: Petroleo Brasileiro S.A. – Petrobras explores for and produces oil and natural gas. The Company refines, markets, and supplies oil products. Petrobras operates oil tankers, distribution pipelines, marine, river and lake terminals, thermal power plants, fertilizer plants, and petrochemical units. The Company operates in South America and elsewhere around the world.

• [By David Sterman]

  Market Value: $173 billion
  Fall from 52-week high: 38%

  This Brazilian oil giant has lost $100 billion in market value since March 2011. That's a lot of dough. The sell-off is the result of a drop in oil prices, slightly stricter government policies regarding oil and gas royalties, and recent moves to issue more stock and debt to help fund business development. (Though the company now vows to stop issuing any more equity.)

  Indeed, this company has been sucking in cash for quite some time, generating a cumulative $40 billion in free cash flow loss in just the past two years. Pretty soon, though, losses will morph into outsized profits when the company's heavy investments to tap massive offshore oil fields finally bear fruit. In 2007, 2008 and again in 2009, Petrobras discovered three new offshore oil fields, known as Tupi, Jupiter, and yet-to-be-named site off of the state of Sao Paolo.

  It's the Tupi energy play that should pique your interest. It's the largest new find of oil since the Kashagan oil field was discovered in Kazakhstan in 2000 and instantly put Brazil's oil reserve base on par with industry giant Norway. Tally up all of its fields, and Petrobas' engineers estimate the country is sitting on more than 12 billion barrels of oil.

  The recent sell-off has put shares of Petrobras deep into bargain territory, trading at just 7.3 times projected 2011 profits and 1.2 times tangible book value.

• [By ETF Authority]  

  Current Price: $47.68 12-month target: $80

  PBR plans to invest $174 billion by 2013 to support the largest oil discovery in 30 years. PetroBras has both the backing of the Brazilian government who invested over $30 billion and the Chinese private investors who have pledged over $20 billion to PBR’s discovery. Brazils government proposed to make PBR the only operator of all new offshore pre-salt oil fields yet to be exploited. PetroBras expects oil production to increased from 2.4 million barrels a day to around 5.7 million barrels a day by 2020. PBR has long-term views and have been expanding renewable energy programs such as solar, biofuel, and energy. Biofuel production is expected to increase 18% by 2013.

Top 10 Dividend Stocks To Buy Right Now: Fluor Corporation(FLR)

Fluor Corporation, through its subsidiaries, provides engineering, procurement, construction, maintenance, and project management services worldwide. Its Oil & Gas segment offers design, engineering, procurement, construction, and project management services to upstream oil and gas production, downstream refining, chemicals, and petrochemicals industries. This segment also provides consulting services comprising feasibility studies, process assessment, and project finance structuring and studies. The company?s Industrial & Infrastructure segment offers design, engineering, procurement, and construction services to the transportation, wind power, mining and metals, life sciences, manufacturing, commercial and institutional, telecommunications, microelectronics, and healthcare sectors. Its Government segment provides engineering, construction, logistics support, contingency response, management, and operations services to the United States government focusing on the Departme nt of Energy, the Department of Homeland Security, and the Department of Defense. The company?s Global Services segment offers operations and maintenance, small capital project engineering and execution, site equipment and tool services, industrial fleet services, plant turnaround services, temporary staffing services, and supply chain solutions. Its Power segment provides engineering, procurement, construction, program management, start-up and commissioning, and operations and maintenance services to the gas fueled, solid fueled, plant betterment, renewables, nuclear, and power services markets. The company also offers unionized management and construction services in the United States and Canada. Fluor Corporation was founded in 1912 and is headquartered in Irving, Texas.

5 Best Safest Stocks To Watch For 2014: Under Armour Inc.(UA)

Under Armour, Inc. develops, markets, and distributes performance apparel, footwear, and accessories for men, women, and youth primarily in the United States, Canada, and internationally. It offers products made from moisture-wicking synthetic fabrics designed to regulate body temperature and enhance performance regardless of weather conditions. The company provides its products in three fit types: compression (tight fitting), fitted (athletic cut), and loose (relaxed) extending across the sporting goods, outdoor, and active lifestyle markets. Its footwear offerings comprise football, baseball, lacrosse, softball, and soccer cleats; slides; performance training footwear; and running footwear. The company also provides baseball batting, football, golf, and running gloves, as well as licenses bags, socks, headwear, custom-molded mouth guards, and eyewear that are designed to be used and worn before, during, and after competition. Under Armour sells its products through retai l stores, as well as directly to consumers through its own retail outlets and specialty stores, Website, and catalogs. The company was founded in 1996 and is headquartered in Baltimore, Maryland.

Advisors' Opinion:

• [By Fernandez]

  Under Armour designs, develops, markets, and distributes performance apparel, footwear, and accessories for men, women, and youth primarily in the United States and Canada.
  

  You’ve probably seen the company’s “Protect This House” or “Click-Clack” commercials, and probably seen anyone from the weekend warrior to professional sports teams wearing the company’s moisture-wicking synthetic fabrics, which are designed to keep perspiration away from the skin, and regulate body temperature regardless of weather conditions.

  I must admit for full disclosure that I am an Under Armour nut, and own about 20 pairs of their shorts, shirts and shoes.

  I can attest from personal experience as a natural bodybuilder and athlete that the Under Armour apparel are the best workout clothing I have ever worn, and they look pretty darn cool too.

  Now let me make a clear distinction between a great company, and a great stock.

  Up until recently, Under Armour was the former, but not the latter.

  It has now entered into a zone where the valuation metrics, even in the face of a consumer slowdown, is looking more and more attractive.

  In fact, Under Armour just released earnings Monday.

  They were pretty much in line with analyst’s expectations, and then Under Armour slightly lowered their forward guidance for the remainder of 2008 based on those same consumer headwinds.

  The market liked what it heard sending shares up 20% (of course, the overall market was up 10%, so…). Shares have since rebounded further are now up almost 50% from their lows just last week!

  This leads me to my investment thesis in shares of Under Armour.

  I believe that Under Armour represents one of the quintessential brands of this decade when it comes to sports apparel, the way Under Armour’s fiercest rival Nike (NYSE: NKE) dominated the 90’s.

  Until now the valuation of the company was not commensurate with the! projected profit and growth, which I thought were way too high, and still might be, along with certain inventory related problems that the company now seems to be getting a handle on.

  Still, with the spike in share price, along with the uncertainty in the market and overall economy, I feel that we will still be able to purchase shares of this great company at a great price in the near future and that we’re seeing a bit of a short squeeze in shares of Under Armour.

  Why I Like the Company: One of the quintessential brands of this decade; Valuation is reaching reasonable to “cheap” levels depending on direction of consumer market and Under Armour’s stock price; Dedicated and fully invested founder with over 77% voting power via class B shares; Improved business fundamentals via better inventory controls and operational structure, and new product offerings; Further expansion available outside the U.S.; Relatively higher margins than competition

• [By Glenn]  

  Current Price: $27.27 12-month target: $37

  I see potential in opportunities for new product adjacencies, and expanding distribution worldwide. Footwear growth will continue to increase. Revenues for these products have increased over 69% in 2009. Adding to this I still see growth in Under Armour’s apparel sales, which are up 8%. Under Armor had yet to even break into the international market, which offers a plethora of new opportunities for this growing brand. I believe sales will rise drastically in 2010 driven by international sales, new women’s clothing line, and expansion within their own footwear line.
• [By Roger]

  Under Armour (NYSE:UA), a maker and designer of apparel, footwear and accessories that target sports enthusiasts, has more than doubled in one year. But despite the advance, many research firms still have a “strong buy” recommendation on the stock. And S&P recently revised its annual target to $93.

  Technically UA has advanced on a series of stair steps, sometimes called “base moves.”? These are very bullish formations that resemble cups. UA reversed up recently following a signal from our proprietary Collins-Bollinger Reversal (CBR) indicator. If the recent pullback to its 50-day moving average (blue line) holds, then the next move up should break the prior high with a target of $85.

  Traders could take risk positions now with a target of $85 to $90. But be careful and use stop-loss orders to protect against a violent reversal, which could drop prices back to support at $62 where this volatile stock could be bought again.

Belden Dividend Steady at a Nickel

Top Growth Stocks To Buy Right Now

Increased spending from Starbucks (NASDAQ: SBUX  ) loyalty cards helped the company report great sales growth so far this year. In fact, the company's success with prepaid cards has been phenomenal.�

Consider these statistics:

Starbucks customers add $3 billion annually to their cards, a pace that rivals many banks. One-third of all Starbucks transactions in the U.S. are made using prepaid cards. Starbucks expects its rewards membership base to double this year, to 9 million people.

In the following video, Fool contributor Demitrios Kalogeropoulos discusses how important loyalty cards have been to Starbucks, and how prepayments have been a good indicator of sales growth in future quarters.

To learn about two retailers with especially good prospects, take a look at The Motley Fool's special free report: "The Death of Wal-Mart: The Real Cash Kings Changing the Face of Retail." In it, you'll see how these two cash kings are able to consistently outperform and how they're planning to ride the waves of retail's changing tide. You can access it by clicking here.

Top Growth Stocks To Buy Right Now: Questar Corporation(STR)

Questar Corporation operates as an integrated natural gas holding company. The company develops and produces natural gas and crude oil from its properties located in the Rocky Mountain region, primarily in the Pinedale, Moxa Arch, Vermillion, and Uinta producing areas. It also provides interstate natural gas-transportation and underground-storage services in Utah, Wyoming, and Colorado; and wellhead automation and measurement services for Rockies oil and gas producers. The company owns and operates approximately 2,568 miles of interstate pipeline with total firm-capacity commitments of 4,983 Mdth per day transporting natural gas from Rocky Mountain producing areas to other pipeline systems, distribution systems, and other utility systems; the Overthrust Pipeline in southwestern Wyoming and the eastern segment of Southern Trails Pipeline, a 487-mile line that extends from the Blanco hub in the San Juan Basin to just inside the California state line near the Arizona border; the White River Hub facilities that connect with 6 interstate-pipeline systems and a processing plant near Meeker, Colorado; the Clay Basin storage facility, an underground-storage reservoir in the Rocky Mountain region; and gathering lines and processing facilities, which provide gas-processing services for third parties near Price, Utah. In addition, it distributes natural gas as a public utility in Utah, southwestern Wyoming, and a small portion of southeastern Idaho. Questar Corporation was founded in 1922 and is headquartered in Salt Lake City, Utah.

Advisors' Opinion:

• [By Peter Leeds]

  Libya without Ghadafi, much like Iraq after the removal of Hussein, will be much less stable. A power vacuum will cause Libya's already divided tribal nation to fragment into warring factions, set on competing for power and settling old scores. Meanwhile, America, Russia, and China will jostle for influence in this oil-rich flashpoint.

  This will create higher oil prices, greater volatility, and a higher risk premium built into costs of the commodity. Due to less reliable overseas oil supplies, America will look to further increase exploration and production from friendlier sources, such as Canada.

  I am expecting Questar (STR 0.00%) to be a big beneficiary of this trend. It is a leading producer and distributor of natural gas to the American domestic market. It is profitable ($36 million in Q3), and had strong 33% growth in third quarter earnings per share, year over year. It also sports a nice 3% dividend. My price outlook: $31.

• [By Peter Leeds]

  A growing population (7 billion), and an increasingly sophisticated diet among China and other developing nations have led to rapidly increasing demand for food around the world. According to Food and Agriculture Organization (FAO) data, China's per capita intake of calories, protein, and fat were below the world average in 1975, but are now well above the world average. Expect this trend to accelerate in China, as well as India, Pakistan, Indonesia, and other developing nations.

  The problem is that there's not even close to enough food, while challenging agricultural environments routinely wipe out crops.

  That's where Monsanto (MON 0.00%) comes in. It enables more food to be produced on smaller parcels of land with less water usage and limited crop loss. Global demand for MON's products and services just keeps growing.  I am expecting its $20 billion in assets and constant net earnings ($1.6 billion in 2011) to translate into further gains in the share price. My price outlook:  $94.

• [By Peter Leeds]

  We are currently seeing currency devaluations from USA to Switzerland and from South Korea to the eurozone. In America in 1960, $1,000 worth of goods would now cost you $7,360, according to the web site MeasuringWorth.com. I expect inflation to continue and, since precious metals are bought in American dollars, I anticipate higher prices for all metals.

  I think Newmont Mining (NEM 0.00%) will be one of the biggest beneficiaries of this trend. It is currently producing and selling gold and developing new reserves all over the world. NEM posted net earnings of $2.3 billion in 2010 and currently sits on $29 billion in total assets. I think it could trade up to $89.50.

Top Growth Stocks To Buy Right Now: Domtar Canada Pape Exchangeable (UFX.TO)

Domtar Corporation engages in the design, manufacture, marketing, and distribution of fiber-based products in North America. The company operates in three segments: Pulp and Paper, Distribution, and Personal Care. The Pulp and Paper segment offers business papers, including copy and electronic imaging papers, which are used with ink jet and laser printers, photocopiers, and plain-paper fax machines, as well as computer papers, preprinted forms, and digital papers. It also provides commercial printing and publishing papers consisting of uncoated freesheet papers, such as offset papers and opaques used in sheet and roll fed offset presses and digital printing; publishing papers comprising tradebook and lightweight uncoated papers used primarily in book publishing applications, such as textbooks, dictionaries, catalogs, magazines, hard cover novels, and financial documents; design papers for use in brochures and annual reports; and base papers for the manufacture of envelopes , tablets, business forms, and data processing/computer forms. In addition, this segment offers paper products for the packaging of food and medicines; and specialty papers for use in industrial applications, including sandpapers, medical gowns, drapes, transfer paper for printing processes, and products for security applications. It sells papers to merchants, converters, end-users, stationers, printers, and retailers. The Distribution segment is involved in purchasing, warehousing, selling, and distributing business papers, printing and publishing papers, and industrial products to commercial printers, publishers, quick copy firms, catalog and retail companies, and institutional entities. The Personal Care segment manufactures and sells incontinence products, such as branded and private label briefs, protective underwear, underpads, pads, and washcloths, as well as distributes disposable washcloths. Domtar Corporation is headquartered in Montreal, Canada.

Best Trucking Stocks To Invest In Right Now: OUM(OUM.AX)

Outback Metals Limited engages in the exploration of gold and other mineral deposits in Northern Territory, Australia. It holds interest in the Wingates gold project and the Mount Wells project located to the south of Darwin. The company is based in Hove, Australia.

Is Standard Motor Products a Cash Machine?

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

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

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

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

Over the past 12 months, Standard Motor Products generated $63.8 million cash while it booked net income of $45.3 million. That means it turned 6.6% of its revenue into FCF. That sounds OK.

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

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

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

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

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

With 20.1% of operating cash flow coming from questionable sources, Standard Motor Products investors should take a closer look at the underlying numbers. Within the questionable cash flow figure plotted in the TTM period above, other operating activities (which can include deferred income taxes, pension charges, and other one-off items) provided the biggest boost, at 11.1% of cash flow from operations. Overall, the biggest drag on FCF came from capital expenditures, which consumed 15.8% of cash from operations.

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

If you're interested in companies like Standard Motor Products, you might want to check out the jaw-dropping technology that's about to put 100 million Chinese factory workers out on the street – and the 3 companies that control it. We'll tell you all about them in "The Future is Made in America." Click here for instant access to this free report.

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

Add Standard Motor Products to My Watchlist.

2 New Melanoma Drugs and 1 Vaccine Acquisition

Top 10 Beverage Companies To Invest In 2014

On Thursday, PepsiCo (NYSE: PEP  ) will release its latest quarterly results. The key to making smart investment decisions on stocks reporting earnings is to anticipate how they'll do before they announce results, leaving you fully prepared to respond quickly to whatever inevitable surprises arise. That way, you'll be less likely to make an uninformed, knee-jerk reaction to news that turns out to be exactly the wrong move.

In the wake of strong earnings results from Coca-Cola (NYSE: KO  ) , PepsiCo has something to prove. But the big question for the consumer giant is whether its snack business will boost its prospects above those of its more beverage-focused rival. Let's take an early look at what's been happening with PepsiCo over the past quarter and what we're likely to see in its quarterly report.

Top 10 Beverage Companies To Invest In 2014: Molson Coors Brewing Company(TAP)

Molson Coors Brewing Company brews, markets, sells, and distributes beer brands. It sells its products in Canada, under the Coors Light, Molson, Rickard's Red, Carling, Pilsner, Keystone Light, Creemore Springs, and Granville Island brands. The company also brews or distributes products under license from third parties, which include Heineken, Amstel Light, Murphy's, Asahi, Asahi Select, Miller Lite, Miller Genuine Draft, Miller Chill, Milwaukee's Best, Milwaukee's Best Dry, and Foster's. In addition, it imports, distributes, and markets the Corona, Coronita, Negra Modelo, and Pacifico brands, through a joint venture agreement with Grupo Modelo. Further, the company sells various brands in the United States, which include Coors Light, Miller Lite, Coors Banquet, Miller Genuine Draft, MGD 64, Miller Chill, Sparks, Miller High Life, Miller High Life Light, Keystone Light, Icehouse, Mickey's, Milwaukee's Best, Milwaukee's Best Light, Old English 800, Blue Moon, Henry Weinhard 's, George Killian's Irish Red, Leinenkugel's, Peroni Nastro Azzurro, Pilsner Urquell, Grolsch, Coors Non-Alcoholic, and Sharp's. Additionally, it sells various brands in the United Kingdom comprising Carling, C2, Coors Light, Worthington's, White Shield, Caffrey's, Kasteel Cru, and Blue Moon, as well as various regional ale brands. The company also sells the Grolsch brands through a joint venture with Royal Grolsch N.V. and the Cobra brands through a joint venture called Cobra Beer Partnership Ltd.; and distributes brands sold under license, including Corona, Coronita, Negra Modelo, Pacfico, Singha, and Magners Draught Cider. In addition, it markets and sells Zima, Si'hai, Coors Gold, and Coors Extra brands to various international markets. The company was formerly known as Adolph Coors Company and changed its name to Molson Coors Brewing Company as a result of its merger with Molson Inc. in February 2005. Molson Coors Brewing Company was founded in 1873 and is headquartere d in Denver, Colorado.

Top 10 Beverage Companies To Invest In 2014: Fomento Economico Mexicano SAB de CV (FMX)

Fomento Economico Mexicano, S.A.B. de C.V. (FEMSA), incorporated on May 30, 1936, is a holding company. The Company conducts its operations through principal holding companies, each of which it refers to as a principal sub-holding company. These companies are Coca-Cola FEMSA, S.A.B. de C.V. (Coca-Cola FEMSA), which engages in the production, distribution and marketing of soft drinks, and FEMSA Comercio, S.A. de C.V. (FEMSA Comercio), which operates convenience stores. The Company�� convenience store chain OXXO operated a total of 7,492 stores as of March 31, 2010. Compania Internacional de Bebidas, S.A. de C.V. (CIBSA) owns a 53.7% interest in Coca-Cola FEMSA. On April 30, 2010, FEMSA announced the closing of the transaction, pursuant to which FEMSA agreed to exchange 100% of its beer operations conducted by FEMSA Cerveza for a 20% economic interest in the Heineken Group. In February 2009, Coca-Cola FEMSA acquired with The Coca-Cola Company the Brisa bottled water business in Colombia from Bavaria, a subsidiary of SABMiller. Coca-Cola FEMSA acquired the production assets and the rights to distribute in the territory, and The Coca-Cola Company obtained the Brisa brand.

Coca-Cola FEMSA, S.A.B. de C.V.

Coca-Cola FEMSA is a bottler of Coca-Cola trademark beverages. Coca-Cola FEMSA operates in various territories, including Mexico, a substantial portion of central Mexico (including Mexico City and the states of Michoacan and Guanajuato) and southeast Mexico (including the Gulf region); Central America, including Guatemala (Guatemala City and surrounding areas), Nicaragua (nationwide), Costa Rica (nationwide) and Panama (nationwide); Colombia; Venezuela; Argentina, including Buenos Aires and surrounding areas, and Brazil, including the area of greater Sao Paulo, Campinas, Santos, the state of Mato Grosso do Sul, the state of Minas Gerais and part of the state of Goias.

Coca-Cola FEMSA produces, markets and distributes Coca-Cola trademark beverages, own brands and b! rands licensed from the Company. The Coca-Cola trademark beverages include sparkling beverages (colas and flavored sparkling beverages), water, and still beverages (including juice drinks, ready-to-drink teas and isotonics). Out of the more than 100 brands and line extensions of beverages sold and distributed by Coca-Cola FEMSA, its most important brand, Coca-Cola, together with its line extensions, Coca-Cola light, Coca-Cola Zero and Coca-Cola light caffeine free, accounted for 61.4% of total sales volume during the year ended December 31, 2009. Coca-Cola FEMSA�� next largest brands, Ciel (a water brand from Mexico), Fanta (and its line extensions), Sprite (and its line extensions), ValleFrut and Hit, accounted for 10.5%, 5.8%, 2.6%, 1.5% and 1.3%, respectively, of total sales volume in 2009. Coca-Cola FEMSA uses the term line extensions to refer to the different flavors in which it offers its brands.

Coca-Cola FEMSA produces, markets and distributes Coca-Cola trademark beverages in each of its territories in containers authorized by The Coca-Cola Company, which consist of a variety of returnable and non-returnable presentations in the form of glass bottles, cans and plastic bottles made of polyethylene terephtalate (PET). Coca-Cola FEMSA uses the term presentation to refer to the packaging unit in which it sells its products. Presentation sizes for its Coca-Cola trademark beverages range from a 6.5-ounce personal size to a 3-liter multiple serving size. For all of its products excluding water, Coca-Cola FEMSA considers a multiple serving size as equal toor larger than one liter. In addition, it sells some Coca-Cola trademark beverage syrups in containers designed for soda fountain use, which it refers to as fountain. It also sells bottled water products in bulk sizes, which refers to presentations equal to or larger than five liters, which have a much lower average price per unit case than its other beverage products.

In Mexico, Coca-Cola FEMSA�� product portfolio consis! ts of Coc! a-Cola trademark beverages, and includes Mundet trademark beverages licensed from FEMSA in some Mexican territories. Coca-Cola FEMSA�� product sales in Latincentro consist predominantly of Coca-Cola trademark beverages. Per capita consumption of its sparkling beverages products in Colombia and Central America was 92 and 146 eight-ounce servings, respectively, in 2009. Its product portfolio in Venezuela consists of Coca-Cola trademark beverages. Sparkling beverages per capita consumption of its products in Venezuela was 174 eight-ounce servings during 2009. Coca-Cola FEMSA�� product portfolio in Mercosur consists mainly of Coca-Cola trademark beverages, and the Kaiser beer brand in Brazil, which Coca-Cola FEMSA sells and distributes on behalf of FEMSA Cerveza. Sparkling beverages per capita consumption of its products in Brazil and Argentina was 214 and 359 eight-ounce servings, respectively, in 2009.

The Company competes with Pepsi Beverage Company, Grupo Embotelladores Unidos, S.A.B. de C.V., Grupo Jumex, Groupe Danone, Cadbury Schweppes, Big Cola, Consorcio AGA, S.A. de C.V., Postobon, Florida Ice and Farm Co. S.A., Cerveceria Nacional, S.A., Pepsi-Cola Venezuela, C.A., AmBev and Quilmes Industrial S.A.

FEMSA Comercio, S.A. de C.V.

FEMSA Comercio operates a chain of convenience stores in Mexico, under the trade name OXXO. OXXO stores are concentrated in the northern part of Mexico, but also have a presence in central Mexico and the Gulf coast. FEMSA Comercio is the largest single customer of FEMSA Cerveza and of the Coca-Cola system in Mexico. During 2009, a typical OXXO store carried 1,954 different store keeping units (SKUs) in 31 main product categories.

The Company competes with 7-Eleven, Super Extra, Super City, Circle-K and AM/PM.

Advisors' Opinion:

• [By Jon Markman]

  Renowned trader, journalist and money manager Jon Markman finished one spot ahead of La Monica last year thanks to Hershey‘s (NYSE:HSY) 20% returns. This year, he’s trading in the sweets for emerging market pick Fomento Economico Mexicano (NYSE:FMX), often referred to asFemsa.

  While Markman thinks the U.S. will struggle with austerity in the coming months, he also believes that if we head just a little bit south, we will find one of the greatest potential growth profiles in the world: Mexico, where Femsa is based.

  “Femsa caters to more than 1.7 million retailers and 215 million consumers, and is the No. 1 beverage provider in every region that it operates in. The firm has grown revenues by 16% annually for the last 10 years,” he explains.

  In fact, last year, FMX tallied impressive 44% gains. On the next pullback, he says, it will be time to buy.

10 Best Recreation Stocks To Watch For 2014: Central European Distribution Corp (CEDCQ)

Central European Distribution Corporation (CEDC), incorporated on September 4, 1997, operates primarily in the alcohol beverage industry. CEDC is a producer of vodka and is Central and Eastern Europe�� integrated spirit beverages business. During the year ended December 31, 2011, as measured by total volume, the Company produced and distributed approximately 33.2 million nine-liter cases . The Company�� business primarily involves the production and sale of its own spirit brands (principally vodka), and the importation on a basis of a range of spirits, wines and beers. Its primary operations are conducted in Poland and Russia. In addition the Company also has operations in Hungary and Ukraine. CEDC has six manufacturing facilities located in Poland and Russia. On February 7, 2011, the Company completed purchasing of the remaining stake of the Whitehall Group.

CEDC is an importer of spirits, wines and beers in Poland, Russia and Hungary. The Company maintains import contracts for a number of internationally recognized brands, including Jim Beam Bourbon, Campari, Jagermeister, Remy Martin Cognac, Corona, Budweiser (Budvar), E&J Gallo wines, Carlo Rossi wines, Sutter Home wines, Metaxa Brandy, Sierra Tequila, Teacher�� Whisky, Cinzano, Old Smuggler, Grant�� Whisky and Concha y Toro wines. In addition to its operations in Poland, Russia, and Hungary the Company has Ukraine and distribution agreements for its vodka brands in a number of key export markets including the United Kingdom, Ukraine, the Baltics and the CIS for Green Mark, Zhuravli, Parliament and Zubrowka, the United States, Japan, the United Kingdom, France for Zubrowka and many other Western European countries. In 2011, exports represented 11% of its sales by value.

Poland

In Poland, CEDC is the vodka producers with a brand portfolio that includes Absolwent, Zubrowka, Zubrowka Biala, Bols, Palace and Soplica brands, each of which it produces at its Polish distilleries. It produces and sells vodka! s primarily in three vodka sectors: premium, mainstream, and economy. The Company owns two production sites in Poland: one in Oborniki and one in Bialystok. In the Oborniki distillery, it produces the Bols and Soplica vodka brands, among other spirit brands. In Bialystok it produces Absolwent and Zubrowka. Zubrowka is also exported out of Poland to many markets around the world, including the United States, England, Japan and also France. In addition to the Absolwent and Zubrowka brands, in Bialystok it produces the Zubrowka Biala brand. The Company has rights to import and distribute approximately 70 brands of spirits, wine and beer into Poland. It also provides marketing support to the suppliers. During 2011, the Company sold approximately 10.7 million nine-liter cases of vodka, wine and spirits through its Polish business during 2011 including both its own produced vodka brands as well as its exclusive agency import brands. During 2011, the Company sold approximately 191 thousand nine-liter cases of Zubrowka outside of Poland. During 2011, the Company�� Polish operations accounted for 26.3% of its revenue.

Russia

CEDC produces Green Mark in Russia and the sub-premium vodkas in Russia, Parliament and Zhuravli. During 2011 the Company introduced new brands to the Russian market Talka, Sotka and Silver Blend. The Company also produces Yamskaya, the economy vodka in Russia, and premixed alcohol drinks, or long drinks. The Company also owns Whitehall, which holds the exclusive rights to the import of such leading premium wine and spirit brands as Concha y Toro, Paul Masson, Robert Mondavi, DeKuyper, Jose Cuervo and Label 5. In addition to these import activities, Whitehall has distribution centers in Moscow, Saint Petersburg, and Rostov as well as a wine and spirits retail network located in Moscow. During 2011, the Company�� Russian operations accounted for 70.2% of its revenue. During 2011,the Company produced and sold approximately 16.6 million nine-liter cases of vodka th! rough its! Russian business in the main vodka segments in Russia: premium, sub-premium, mainstream, economy and cheap. In addition it produced and sold approximately 2.8 million nine-liter cases of long drinks.

Hungary

The Company sells Royal Vodka in Hungary through its Bols Hungary subsidiary. The imported brands to Hungary include Bols Vodka, Zubrowka, Royal Vodka, Campari, Cinzano, Jaegermeister, Bols Liqueurs, Cointreau, Carolans, Galliano, Irish Mist, Jose Cuervo, Calvados Boulard, Remy Martin, Metaxa, St Remy, Grant��, Glenfiddich, Tullamore Dew and Old Smuggler.

Top 10 Beverage Companies To Invest In 2014: Pepsico Inc.(PEP)

PepsiCo, Inc. engages in the manufacture, marketing, and sale of foods, snacks, and carbonated and non-carbonated beverages worldwide. The company operates in four divisions: PepsiCo Americas Foods (PAF); PepsiCo Americas Beverages (PAB); PepsiCo Europe; and PepsiCo Asia, Middle East, and Africa (AMEA). The PAF division offers Lay?s and Ruffles potato chips, Doritos and Tostitos tortilla chips and dips, Cheetos cheese flavored snacks, Fritos corn chips, Quaker Chewy granola bars, and SunChips multigrain snacks in North America; Quaker oatmeal, Aunt Jemima mixes and syrups, Cap?n Crunch cereal, Quaker grits, and Life cereal, as well as Rice-A-Roni, Pasta Roni, and Near East side dishes in North America; and various snack foods under Doritos, Marias Gamesa, Cheetos, Ruffles, Emperador, Saladitas, Sabritas, and Lay?s brands in Latin America. The PAB division provides carbonated soft drinks, beverage concentrates, fountain syrups, and finished goods under Pepsi, Mountain Dew, Gatorade, 7UP, Tropicana Pure Premium, Electropura, Sierra Mist, Epura, and Mirinda brands; ready-to-drink tea, coffee, and water products through joint ventures with Unilever and Starbucks; and sells concentrate to authorized bottlers, and branded finished goods directly to independent distributors and retailers. This division also manufactures third-party brands, such as Dr Pepper, Crush, Rock Star, and Muscle Milk. The PepsiCo Europe division offers Frito Lay Snacks, Pepsi-Cola beverages, Gatorade sports drinks, Tropicana juices, and Quaker foods in Europe. The AMEA division provides snack food under the Lay?s, Kurkure, Chipsy, Doritos, Smith?s, Cheetos, Red Rock Deli, and Ruffles brands; Quaker-brand cereals and snacks; and beverage concentrates, fountain syrups, and finished goods under the Pepsi, Mirinda, 7UP, and Mountain Dew brands. PepsiCo, Inc. was founded in 1898 and is headquartered in Purchase, New York.

Advisors' Opinion:

• [By ETF Authority]

  Unlike its competitor, PepsiCo has a large exposure to the food industry. This has helped the company generate strong performance over the past decade versus Coca-Cola. I personally prefer the taste of Coke over Pepsi, however, and many consumers seem to have similar taste buds. PepsiCo tends to make large acquisitions, which have worked so far. Sometimes it tends to overpay them, like the recent acquisition of Wimm-Bill-Dann. PepsiCo is cheaper than Coca-Cola, and both have similar near-term prospects.

• [By Steven Goldberg]

  PepsiCo (PEP, $82.51, 2.6%) will likely never catch up with number one Coca-Cola (KO) in the soft drink business, but it is the dominant player globally in salty snacks. Brands include Lay's, Ruffles, Doritos, Cheetos and Tostitos, not to mention Quaker Oatmeal, Rice-a-Roni, Gatorade and Tropicana. The stock trades at a somewhat pricey 17 times estimated year-ahead earnings.

• [By Dennis Slothower]

  PepsiCo, Inc. (PEP) manufactures, markets, and sells various foods, snacks, and carbonated and non-carbonated beverages worldwide. The company operates in four divisions: PepsiCo Americas Foods (PAF), PepsiCo Americas Beverages (PAB), PepsiCo Europe, and PepsiCo Asia, Middle East and Africa (AMEA). PAF divisions. The company has raised distributions for 38 years in a row and yields 2.90%. The company is attractively valued at the moment at 16.60 times earnings.

Top 5 Valued Stocks To Watch Right Now

About a year ago, I attempted to value Berkshire Hathaway (NYSE: BRK-B  ) , and I found it to be at least 20% undervalued at $82�per B-share. Fast forward just over a year, and the B-shares have advanced 30% to almost $107. So, I figured it was time to sharpen up my pencil and reestimate the value.

My conclusion: It is just as undervalued, even at today's higher prices.

My valuation approach
Berkshire is a huge company, and notoriously difficult to value. Fortunately, Warren provides a pretty good framework for evaluating the intrinsic value. He laid it all out in his 2010 letter to shareholders. Basically, the value of Berkshire Hathaway shares comes down to two quantitative factors:

Investments per share Operating earnings per share

I've shown my math (and assumptions) below, and you're free to use this methodology, also known as the two-column approach, to create your own valuation.

Top 5 Valued Stocks To Watch Right Now: Caterpillar Inc.(CAT)

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

Advisors' Opinion:

• [By Dave Friedman]

  The shares closed at $91.37, up $1.56, or 1.74%, on the day. They have traded in a 52-week range of $63.34 to $116.55. Volume today was 10,450,473 shares, against a 3-month average volume of 9,960,260 shares. Its market capitalization is $59.03billion, its trailing P/E is 15.11, its trailing earnings are $6.05 per share, and it pays a dividend of $1.84 per share, for a dividend yield of 2.00%. About the company: Caterpillar Inc. designs, manufactures, and markets construction, mining, agricultural, and forestry machinery. The Company also manufactures engines and other related parts for its equipment, and offers financing and insurance. Caterpillar distributes its products through a worldwide organization of dealers.

• [By Jim Cramer]

  this stock could be a monster in 2011, especially with the integration of Bucyrus (BUCY), which I think will turn out to be a fantastic acquisition. Estimates, currently showing EPS at about $6, I think are way, way too low. I see this stock going to $120 in the next year. Too gutsy? Ask yourself what happens if the United States comes back as a growth nation. Right now almost all of the growth is overseas. Still a fantastic mineral play and a terrific call on world growth.

• [By Roberto Pedone]

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

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

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

Top 5 Valued Stocks To Watch Right Now: Tupperware Corporation(TUP)

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

Advisors' Opinion:

• [By Sam Collins]

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

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

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

10 Best Recreation Stocks To Own Right Now: Schlumberger N.V.(SLB)

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

Advisors' Opinion:

• [By Kathy Kristof]

  Headquarters: Houston
  
  52-Week High: $79.38
  
  52-Week Low: $56.86 
  
  Annual Sales: $39.5 bill.
  
  Projected Earnings Growth: 18% annually over the next five years 
  
  
  Energy-services giant Schlumberger is the prototypical multinational. The company derives roughly 85% of its revenues from overseas, including developing markets in Africa, Brazil and Asia. 
  
  With particular expertise in deep-water drilling, Schlumberger is well-positioned to compete in a world where oil is harder to find, says Argus Research analyst Philip Weiss. Admittedly, oil exploration is a cyclical business, driven largely by crude prices. And weak prices for natural gas have hit the company’s stock, Weiss says. But the price of natural gas has little to do with Schlumberger’s profits, so Weiss just sees this as an opportunity to get the shares at a more reasonable price.

• [By Robert Holmes]

   Schlumberger has the most potential upside of any stock in this group of 50 that also makes the firm's Best Ideas list. Analyst Ole Slorer says Schlumberger has "what we consider the most advanced technology portfolio in the industry."

  "Its fundamentals are impressive, with what we think are some of the best field personnel, a pristine service and performance reputation, and leading market share in most of its product lines," Slorer writes.

  Though Slorer's price target is 42% above current levels, his most bullish scenario for Schlumberger over the next year would see shares climb a whopping 116%. On the downside, his most bearish scenario for the company would see shares slide 38% over the next 12 months.

• [By Michael]

  Schlumberger Limited (NYSE: SLB): Cramer also had more than $100,000 invested in SLB. As of Feb. 15, his charitable trust owns 1,300 shares for a total of about $100,724. SLB is also quite popular among hedge funds. At the end of last September, there were 42 hedge funds with SLB positions in their 13F portfolios. Ken Fisher was the most bullish hedge fund manager about SLB -- Fisher Asset Management had nearly $500 million invested in SLB at the end of the third quarter. Jim Simons’ Renaissance Technologies also invested nearly $200 million in this stock.

  Schlumberger has reasonable debt levels, growing net income and revenue, and healthy cash flow from operations. It is relatively expensive compared with its competitors though. SLB has a forward P/E ratio of 13.6. Its expected annual EPS growth rate is 21.82% on the average for the next five years, which means that its P/E ratio for 2014 will be around 9.2. This is quite low compared with the market, but not so versus its peers.

Top 5 Valued Stocks To Watch Right Now: Dollar Tree Inc.(DLTR)

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

Advisors' Opinion:

• [By Sam Collins]

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

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

Will Toll Brothers Boom in Housing's Recovery?

On Wednesday, Toll Brothers (NYSE: TOL  ) will release its latest quarterly results. The key to making smart investment decisions on stocks reporting earnings is to anticipate how they'll do before they announce results, leaving you fully prepared to respond quickly to whatever inevitable surprises arise. That way, you'll be less likely to make an uninformed, knee-jerk reaction to news that turns out to be exactly the wrong move.

The housing market has started recovering much more quickly in recent months, making investors incredibly optimistic about the prospects for Toll Brothers and its homebuilding peers. But have the industry's stocks gotten ahead of their fundamentals? Let's take an early look at what's been happening with Toll Brothers over the past quarter and what we're likely to see in its quarterly report.

Stats on Toll Brothers

Analyst EPS Estimate	$0.07
Change From Year-Ago EPS	(30%)
Revenue Estimate	$511.06 million
Change From Year-Ago Revenue	37%
Earnings Beats in Past 4 Quarters	3

Source: Yahoo! Finance.

Will Toll Brothers see an earnings rebound this quarter?
Analysts haven't shared the general enthusiasm about housing in their earnings estimates on Toll Brothers, having slashed their April-quarter estimates by nearly two-thirds and cutting $0.16 per share from their full-year fiscal 2013 consensus earnings figures. The stock also hasn't moved very far lately, falling about 1% since mid-February.

Enthusiasm among homebuilders has been extremely strong lately, as favorable data on the housing front has lifted many stocks substantially in recent months. Late last month, D.R. Horton (NYSE: DHI  ) saw sales jump nearly 50%, as profits jumped nearly 175% in its most recent quarter. Smaller builders like Hovnanian (NYSE: HOV  ) , which suffered disproportionately hard during the housing bust, have recovered the most sharply. Hovnanian's stock quadrupled in 2012, and while it's down a bit year to date, it has still held onto massive gains compared to its peers.

But Toll Brothers hasn't seen nearly the magnitude of gains that its fellow homebuilders have enjoyed. In its fiscal second-quarter results announced in February, Toll Brothers fell short of expectations despite seeing signed contracts rise by 49%. Although the company noted increased demand and building momentum in its business, average selling prices fell 2%, and investors have held back on Toll Brothers and favored other, smaller homebuilder stocks.

Interestingly, Toll Brothers has decided to move beyond outright sales to promote luxury rentals. In a partnership with AECOM's (NYSE: ACM  ) Capital investment fund, Toll Brothers announced last month it would develop a 417-unit rental tower in Jersey City, with leasing expected by early 2015. The building is the first of a planned complex that will include 925 residential units, along with a performing arts center, retail space, and a pedestrian plaza. Given Toll Brothers' focus on luxury, catering both to renters and buyers makes sense for the company.

In Toll Brothers' report, look at whether the company is able to sustain growth at rates similar to what middle-end homebuilders have managed lately. If the luxury end of the housing market is struggling, it could have ramifications not just for Toll Brothers but for the U.S. economy as a whole.

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Will You Regret Selling British American Tobacco?

LONDON -- Undeniably, investors in British American Tobacco (LSE: BATS  ) have had a good run. Over the past 10 years, the company's shares have risen 460%, handsomely outperforming the FTSE 100's more modest 67% growth over the same period.

And if this weren't enough, it has also pleased income investors. A perennial favorite with dividend seekers, British American Tobacco has consistently offered a yield a shade below 5%.

In short, it's been a "have your cake and eat it" sort of company, offering an enviable total return. And as with fellow "sin stock" Diageo, it's difficult to escape the conclusion that the folks who bank on booze and baccy have been right all along.

Even so, I've never bought in myself, querying the logic of owning a stake in a business where the products that it sells kill those who consume them.

But if I did hold British American Tobacco, I might today be thinking of selling. Because the company's recent results may be signalling that cigarette manufacture has gone ex-growth.

All change
Of course, people have been saying that cigarette manufacturing ought to go ex-growth for years. But there are now signs that the drip, drip, drip effect of high taxation combined with anti-smoking legislation might be having an effect.

Just yesterday, for instance, Ireland -- one of the first countries in the world to ban smoking in pubs, restaurants, and workplaces, back in 2004 -- followed Australia and mandated that tobacco firms only sell cigarettes in plain, non‑branded packaging.

Here in the U.K., legislation that came into effect last year requires all large shops and supermarkets in England to cover up cigarettes, and hide tobacco products from public view.

Around the world, in short, selling tobacco is becoming an increasingly tough proposition -- and sure enough, British American Tobacco's results highlight falling sales.

Declining volumes
For me, one of the most striking things about British American Tobacco's full year results for 2012 -- apart from the slowing rate of dividend increases -- was the statistic that overall cigarette volumes were down 1.6%. This was "mainly due to contractions in some of our larger markets," said the company.

And look at the latest trading statement, released on April 24, and the same thing can be seen again: overall volume down 3.6%, with a rise in Asia Pacific of 6.7% partly masking falls of 10.3% in Western Europe, 1.8% in Eastern Europe and Middle East, and 15.6% in the Americas.

In other words, the rising revenues that have propelled British American Tobacco's resurgent share price and earnings look to be under threat. For the financial year ending Dec. 31, 2012, for instance, reported revenues were down 1%, with only its revenues at constant exchange rates showing a rise of 4%.

So is it time to sell -- and put the proceeds to work elsewhere, in a share with better long-term prospects? Had I got a stake in British American Tobacco, I suspect that I'd be asking that question. A temporary hiccup is one thing -- I view them as potential buying opportunities -- but long-term decline is another.

Follow the money
Of course, whether this recent decline in volume at British American Tobacco makes the business a "sell" is something that only you can decide.

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A Closer Look at Lloyds' Dividend Potential

This Oil Company Has Produced Tremendous Growth

There are not many companies that have benefited more from the North American oil and gas boom than Continental Resources (NYSE: CLR  ) . Not only has the company gone on a recent tear of beating analyst expectations, but production growth has been soaring for this Bakken-heavy producer.

In 2013, the company expects to increase production by as much as 40%. The Bakken has been the primary source of that growth, but the company is also aggressively pursuing another oil play in western Oklahoma known as the SCOOP play. 

Not everything is daffodils and rainbows for Continental though. The company is trying hard to resolve its gas-flaring issues in North Dakota, and it relies heavily on rail transport for moving its oil. In this video, Fool.com contributor Tyler Crowe explains how relying heavily on rail could deal a blow to operating expenses in the future if certain industry trends continue.

Kodiak Oil & Gas is another dynamic growth story -- it offers great opportunities, but with those opportunities come great risks. Before you hitch your horse to this carriage, let us help you with your due diligence. To find out whether Kodiak is currently a buy or a sell, you're invited to check out The Motley Fool's premium research report on the company, which comes with a full year of updates and analysis as key news breaks. To get started simply click here now.

Hot Long Term Companies For 2014

With its big push into producing exclusive programming, Netflix� (NASDAQ: NFLX  ) has had to take on more debt. What's more, the company says that it plans to keep spending on original content, and to fund that investment through more debt in the future.

NFLX Long Term Debt data by YCharts.

In the video below, Fool contributor Demitrios Kalogeropoulos argues that the gamble has been a good one, as exclusive shows like House of Cards�have created a halo effect around the service that's keeping existing subscribers longer, and making it easier for Netflix to sign up new members. Still, that only works as long as the company's subscriber growth continues, and as long as the hits keep on coming.

Hot Long Term Companies For 2014: Web.com Group Inc(WWWW)

Web.com Group, Inc. provides Internet services for small- to medium-sized businesses (SMBs) in North America, South America, and the United Kingdom. It provides .com, .net, .co, .org, and .info domains, as well as domain services, including domain name registration, domain name transfers, domain name renewal, domain expiration protection, and domain privacy services; develops and supports a subscription Web service package that includes the tools and functionality necessary for a business to create and maintain online presence, as well as provide tutorials and tools for customers to edit and manage their sites. The company?s primary Do It For Me subscription offering comprise eWorks! XL, which provides domain name registration, initial site design, technical support, Webmail, online Web tools, and Internet scorecard; custom Website design services comprising map and directions pages, external links pages, Website statistics, database applications, password security, and e mail services; and social media and call center services. It also provides various Do-It-Yourself Website building and marketing solutions for SMBs, such as hosting services, Website design tools, email marketing tools, and LogoYes design and brand building tools. In addition, the company offers online marketing services, including search engine optimization, local and national search engine marketing, subscription-based services, budget-based search engine marketing, and click search engine marketing services; lead generation services consisting of Leads by Web.com to contractors, homebuilders, and remodeling professionals; and eCommerce merchant services. Web.com Group, Inc. markets its products and services through outbound and inbound telesales, online channel, affiliate network and private label partners, distribution partners, resellers, and direct sales. The company was incorporated in 1999 and is headquartered in Jacksonville, Florida.

Advisors' Opinion:

• [By Carlson]

  Web.com Group Inc. (NASDAQ: WWWW) finds itself in a very interesting place going into 2013. The online Web hosting and domain hosting provider has advertised aggressively to win new business, as many small businesses have to create a Web presence. With the rise of so many accidental entrepreneurs in recent years, this has been new fertile ground for Web.com. The addition of Network Solutions from VeriSign has been another big boost for Web.com, and it seems as though Wall St. analysts have not properly factored in the earnings and revenue power that this will add through time. This acquisition was a game changer by our take, and new services in Web development, hosting and other services is turning Web.com into a serious destination for website owners.

  At $15.58, the 52-week range is $10.54 to $19.72 and the market cap is $737 million. At 10-times current earnings and at just under eight-times expected 2013 earnings, we feel that Wall St. has not caught up to the Web.com story. We see this company as another long-term beneficiary of the consolidation (M&A) phase. With a consensus price target of $21.82, analysts see upside of just over 40% in Web.com.

Hot Long Term Companies For 2014: Red Robin Gourmet Burgers Inc.(RRGB)

Red Robin Gourmet Burgers, Inc., together with its subsidiaries, develops, operates, and franchises casual-dining restaurants in the United States and Canada. As of February 16, 2012, the company operated 465 Red Robin restaurants, including 328 company-owned restaurants and 137 restaurants operating under franchise agreements. Its restaurants offer gourmet burgers, as well as various salads, soups, appetizers, entrees, desserts, and signature Mad Mixology alcoholic and non-alcoholic specialty beverages Red Robin Gourmet Burgers, Inc. was founded in 1969 and is headquartered in Greenwood Village, Colorado.

Advisors' Opinion:

• [By Conrad]

  Red Robin Gourmet Burgers, Inc. (RRGB) is trading around $26.35. Red Robin is a gourmet burger restaurant based in Colorado. The relative strength index is about 65. The 50 day moving average is $23.78 and the 200 day moving average is $21.04. The fact that the 50 day moving average has crossed over the 200 dma indicates a bullish uptrend called a Golden Cross Formation. These shares have traded in a range between $16.85 to $29.10 in the last 52 weeks. RRGB is estimated to earn about $1 per share in 2011. You can see the repeated insider buying here.

  Who is buying at Red Robin: A number of insiders have been buying, mostly directors and the level of insider buying easily totals more than $100,000 in the past several weeks alone. This stock is trading well above the recent moving averages, so I would wait for pullbacks before considering a buy here.

Hot Warren Buffett Stocks To Watch For 2014: SeaBright Holdings Inc.(SBX)

SeaBright Holdings, Inc., through its subsidiaries, provides multi-jurisdictional workers? compensation insurance for maritime customers, state act customers, and employers in the construction industry. It offers insurance coverage for prescribed benefits that employers are required to provide to their employees, who may be injured in the course of their employment. The company also involves in general liability insurance business in conjunction with workers? compensation insurance for construction projects written under a controlled insurance program. In addition, it provides medical bill review, utilization review, nurse and physician case management, and related services. SeaBright Holdings, Inc. distributes its products through independent insurance brokers, licensed wholesale insurance brokers, and third-party managing general agents. The company was formerly known as SeaBright Insurance Holdings, Inc. and changed its name to SeaBright Holdings, Inc. in May 2010. Se aBright Holdings, Inc. was founded in 1986 and is headquartered in Seattle, Washington.

Hot Long Term Companies For 2014: Suncor Energy Inc (SU.TO)

Suncor Energy Inc., together with its subsidiaries, operates as an integrated energy company. The company primarily focuses on developing petroleum resource basins in Canada's Athabasca oil sands; explores, acquires, develops, produces, and markets crude oil and natural gas in Canada and internationally; transports and refines crude oil; markets petroleum and petrochemical products primarily in Canada; markets third-party petroleum products; and engages in energy trading activities. Its Oil Sands segment recovers bitumen from mining and in situ development in northern Alberta, and upgrades it into refinery feedstock, diesel fuel, and byproducts. The company�s Exploration and Production segment consists of offshore operations off the east coast of Canada and in the North Sea, and onshore operations in North America, Libya, and Syria. Its Refining and Marketing segment refines crude oil at Suncor's refineries in Edmonton, Alberta; Montreal, Quebec; and Sarnia, Ontario in Ca nada, as well as in Commerce City, Colorado into a range of petroleum and petrochemical products; and manufactures, blends, and markets specialty lubricants and waxes to retail, commercial, and industrial customers through a combination of company-owned, branded-dealer, and other retail stations in Canada and Colorado, a nationwide commercial road transport network in Canada, and a sales channel in Canada. The company was formerly known as Suncor Inc. and changed its name to Suncor Energy Inc. in April 1997. Suncor Energy Inc. was founded in 1953 and is headquartered in Calgary, Canada.

Adobe Acquires Agency for Creative Cloud

Today, Adobe (NASDAQ: ADBE  ) purchased the San Francisco creative consulting agency, Ideacodes. The company designs and creates user interfaces for smart applications, digital products, and networked communities, according to an Adobe press release.

The co-founders of Ideacodes, Emily Chang and Max Kiesler, will join Adobe's Creative Cloud business as creative directors. In a statement, Chang and Kiesler said, "We're thrilled to join Adobe at a time when Creative Cloud is beginning to take form, the potential to harness the power of connected networks is being realized, and the influence of good design on experience is being appreciated and expected from people worldwide."

Adobe said in the release that, "The Ideacodes team will help us realize our goal of making Creative Cloud indispensable for creatives worldwide." The Ideacodes acquisition comes just a week after Adobe announced that it was acquiring the developer team from Thumb Labs to create an enhanced mobile experience for Creative Cloud.

Adobe has not released further details or a purchase price for the Ideacodes acquisition.

Hot Oil Companies To Watch For 2014

For some three decades, Saudi Arabia and the rest of the Organization of the Petroleum Exporting Countries, or OPEC, have wielded tremendous influence over the global oil markets. Saudi Arabia, in particular, has enjoyed the unparalleled ability to influence global oil prices by increasing or reducing its production and exports -- an advantage it has exercised at various points over the past few decades. �

But the recent surge in non-OPEC crude oil supplies, fueled mainly by growing production from U.S. shale and Canada's oil sands, has radically altered the game for OPEC, even threatening to reduce the organization's share of the global oil market this year to its lowest level in more than a decade. But far from proclaiming gloom and doom, the Saudis say they aren't worried.

Saudis welcome U.S. oil boom
In fact, according to Saudi Arabia's Petroleum and Mineral Resources Minister Ali I. al-Naimi, the Kingdom welcomes the U.S. shale oil boom because the increase in U.S. crude supplies could help stabilize global oil markets.

Hot Oil Companies To Watch For 2014: Williams Partners L.P.(WPZ)

Williams Partners L.P. focuses on natural gas transportation, gathering, treating and processing, storage, natural gas liquid fractionation, and oil transportation activities in the United States. The company operates in two segments, Gas Pipeline, and Midstream Gas and Liquids. The Gas Pipeline segment owns and operates approximately 13,900 miles of pipelines with annual throughput of approximately 2,700 trillion British thermal units of natural gas and delivery capacity of approximately 13 million dekatherms of gas. This segment also owns interests in joint venture interstate and intrastate natural gas pipeline systems. The Midstream Gas and Liquids segment includes natural gas gathering, processing, and treating facilities; and crude oil gathering and transportation facilities that serve the producing basins in Colorado, New Mexico, Wyoming, the Gulf of Mexico, and Pennsylvania. Williams Partners GP LLC serves as the general partner of the company. Williams Partners L.P . was founded in 2005 and is based in Tulsa, Oklahoma.

Advisors' Opinion:

• [By Louis Navellier]

  Williams Partners (NYSE:WPZ) is an integrated natural gas company that is involved with exploration and production, midstream gathering and processing and interstate natural gas transportation. In the last nine-and-a-half months, WPZ stock has gained 18% since January 2011.

Hot Oil Companies To Watch For 2014: Marathon Oil Corporation(MRO)

Marathon Oil Corporation, through its subsidiaries, operates as an international energy company with operations in the United States, Canada, Africa, the Middle East, and Europe. It operates through three segments: Exploration and Production, Oil Sands Mining, and Integrated Gas. The Exploration and Production segment explores for, produces, and markets liquid hydrocarbons and natural gas. The Oil Sands Mining segment mines, extracts, and transports bitumen from oil sands deposits in Alberta, Canada; and upgrades the bitumen to produce and market synthetic crude oil and vacuum gas oil. The Integrated Gas segment markets and transports products manufactured from natural gas, such as liquified natural gas and methanol. The company was formerly known as USX Corporation and changed its name to Marathon Oil Corporation in July 2001. Marathon Oil Corporation was founded in 1887 and is based in Houston, Texas.

Advisors' Opinion:

• [By Skousen]

  Marathon Oil (MRO) has been downgraded by TheStreet Ratings from buy to hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, reasonable valuation levels and good cash flow from operations. However, as a counter to these strengths, we find that the stock has had a generally disappointing performance in the past year.

  Marathon Oil Corporation, through its subsidiaries, operates as an international energy company with operations in the United States, Canada, Africa, the Middle East, and Europe. It operates through three segments: Exploration and Production, Oil Sands Mining, and Integrated Gas. The company has a P/E ratio of 8.1, above the average energy industry P/E ratio of 5.6 and below the S&P 500 P/E ratio of 17.7. Marathon Oil has a market cap of $18.9 billion and is part of the basic materials sector and energy industry. Shares are up 4.5% year to date as of the close of trading on Friday.

Hot Internet Companies To Own For 2014: Weatherford International Ltd(WFT)

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

Advisors' Opinion:

• [By Tom Bishop]

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

Hot Oil Companies To Watch For 2014: Transocean Inc.(RIG)

Transocean Ltd. provides offshore contract drilling services for oil and gas wells worldwide. It offers deepwater and harsh environment drilling, oil and gas drilling management, and drilling engineering and drilling project management services. The company also offers well and logistics services. In addition, it engages in oil and gas exploration, development, and production activities primarily in the United States offshore Louisiana and Texas, and in the United Kingdom sector of the North Sea. As of February 10, 2011, the company owned, had partial ownership interests in, and operated 138 mobile offshore drilling units, including 47 high-specification floaters, 25 midwater floaters, 9 high-specification jackups, 54 standard jackups, and 3 other rigs, as well as 1 ultra-deepwater floater and 3 high-specification jackups under construction. Transocean Ltd. was founded in 1953 and is based in Zug, Switzerland.

Advisors' Opinion:

• [By John Paulson]

  Transocean LTD., formerly Transocean Inc., is an international provider of offshore contract drilling services for oil and gas wells. Transocean Ltd. has a market cap of $24.06 billion; its shares were traded at around $75.41 with a P/E ratio of 13.11 and P/S ratio of 2.51. Transocean Ltd. had an annual average earnings growth of 12.7% over the past 10 years. GuruFocus rated Transocean Ltd. the business predictability rank of 2.5-star.
  
  Transocean stock has not quite recovered from the market crash of 2008, when it plunged from a $160 range to the low $40 range. As of April 25, 2011, it is selling at $73.40, with a 52-week high of $90.53. Year to date, it is up 5.6%.
  
  Paulson initiated his stake in the company in the fourth quarter of 2010. He bought 7.2 million shares at an average price of $67.17. The stock has gained 12.3% since then.
  
  Transocean owned the right that exploded in the Gulf of Mexico oil spill in April, 2010. From 2006-2009, the company earned net income of $1 billion to over $5 billion. In 2010, the year of the oil spill, it took a dramatic hit, earning $961 million in net income. In the fourth quarter of 2010, it lost $799 million in net income. Transocean had a gross profit margin of 46.5% in 2010.
  
  In April, Transocean’s ultra-deepwater drillship set the record for deepest water drill in history: 10,194 feet off the coast of India. The company will also pay the first installment of a proposed dividend of approximately $1 billion in June.

Hot Oil Companies To Watch For 2014: Chesapeake Energy Corporation(CHK)

Chesapeake Energy Corporation engages in the acquisition, development, exploration, and production of natural gas and oil properties in the United States. It also provides marketing and other midstream services. The company?s properties are located in Alabama, Arkansas, Colorado, Kansas, Kentucky, Louisiana, Maryland, Michigan, Mississippi, Montana, Nebraska, New Mexico, New York, North Dakota, Ohio, Oklahoma, Pennsylvania, Tennessee, Texas, Utah, Virginia, West Virginia, and Wyoming. As of December 31, 2010, it had interests in approximately 45,800 gross productive wells. The company?s proved reserves include 17.096 trillion cubic feet of natural gas equivalent. Chesapeake Energy Corporation was founded in 1989 and is based in Oklahoma City, Oklahoma.

Advisors' Opinion:

• [By Sam Collins]

  Chesapeake Energy (NYSE: CHK) is one of the largest independent exploration and production companies in the United States. It focuses on U.S. onshore natural gas production east of the Rocky Mountains.?

  On Jan. 30, the company said that Cnooc Ltd. (NYSE: CEO) would pay $1.3 billion for access to acreage held by Chesapeake Energy. CHK has also developed a dominant natural gas shale position, and S&P “expects its expertise in unconventional drilling to carry over to liquids development.”?

  Technically, the close above $28 represents a major breakout from a three-year consolidation. The target for CHK is $39.