Things worth hearing on HP earnings call

SAN FRANCISCO -- We speculated earlier this week that another sudden move in Hewlett-Packard's share price would follow its earnings report -- and after the fiscal-year performance turned in by CEO Meg Whitman and CFO Catherine Lesjak, the mood on the company was upbeat Wednesday.

Whitman made it clear company executives and the stock analysts who cover the company are very much on the same page these days, with H-P's fiscal 2014 profit forecast precisely in line with Wall Street estimates.

H-P shares remain attractive to income investors hungry for fat dividends because Whitman, in her second year with the company, made major progress turning around the venerable company's struggling operations.

And Lesjak's balance sheet and cash flow management allowed the company to pay down debt even while its sales fell and it paid its bills on time.

In the just completed year, H-P's free cash flow rose 21% to $9.1 billion, $1 billion more than the company's original forecast.

That helps explain why its shares are up about 80% this year.

On the revenue side, H-P beat Wall Street's estimate by $1 billion through incremental market share improvements in several large hardware markets, including servers, storage gear and PCs.

Commercial PC sales revenue rose 4% from a year earlier.

H-P also said it plans to hire more engineers to win business through innovation.

Given the chaos Whitman inherited near the end of 2010, H-P's performance is a feather in her cap on Wall Street. "It was a good, solid quarter," Whitman told USA TODAY in a phone interview Tuesday. "The innovation engine (at H-P) is alive and well."

Still, the Silicon Valley company either laid off or bought out 24,600 H-P employees during the just-completed fiscal year -- and the jury is still out on the stock for value growth investors on the hunt for a turnaround story.

That's because most of H-P's business units compete in markets whose near-term future growth is forecast to be weak.

John Shinal, technology columnist for USA TODAY.(Photo: USA TODAY)

Whitman, near the end of an analysts' call Tuesday, agreed with the current 2014 forecast from market researcher IDC, which calls for the PC business to shrink 6% to 7% next year.

Wall Street's 2014 revenue forecast still calls for a slight overall revenue decline for H-P.

It could rise if H-P takes more market share in servers, storage or networking gear, and Whitman is competing harder for all of it.

The company's gross margins on hardware fell in 2013 as it traded profitability for market share.

Even so, in fiscal 2013, sales fell 7% overall and 6% in the Americas region. They dipped 9% in H-P's European region.

In China, H-P's businesses posted year-over-year revenue drops – except for networking equipment, which rose 3%.

Lastly, H-P's free cash flow, which helps fund dividend payments, is about to make a major reversal in trajectory.

The company's forecast on the call was for 2014 free cash flow to drop about 28%, to a range between $6 billion and $6.5 billion, as severance payments, restructuring costs and employee bonuses that are now payable will create "working capital pressure" that is "front-end loaded" in the new fiscal year, Lesjak said near the end of the call.

The company's very efficient use of cash – H-P's cash cycle dropped to an average of 17 days during the period – is about to become less efficient, though also more sustainable.

"We pulled cash into 2013 by reducing our cash position to 17 days," Lesjak said. "We'll give some of that back" in the early part of the new fiscal year, she added, returning to a long-term sustainable cash flow position of about 20 or 21 days.

These! working ! capital headwinds mean the company won't be able to reduce debt the way it did in the just-completed year.

It will, however, keep paying a hefty dividend.

To shareholders who own the stock on Dec. 11, H-P will pay a dividend of $14.52 a share on Jan. 2, 2014.

That will help make H-P shares a likely holiday present for income investors unworried by short-term market swings.

For growth investors who do, H-P's success will depend on whether Whitman and H-P's sales people can find some respectable growth among slow-growing markets.

John Shinal has covered tech and financial markets for 15 years at Bloomberg, BusinessWeek, the San Francisco Chronicle, Dow Jones MarketWatch, Wall Street Journal Digital Network and others.

Save money on holiday expenses

Thanksgiving Day airfares surged 8.2% in September alone.

(Money Magazine) A jump in airfares is just one of the ways this holiday season can carve a hole in your wallet.

With airlines cutting back on seats, Turkey Day fares in late September were 8.2% costlier than a year earlier, reports CheapAir.com. And that price differential could hit 20% by November. Use these travel, shopping, and giving strategies, then, to make it through 2013 with more cash left over.

More holiday tips

Fly a day less traveled. Save a bundle by avoiding the standard Wednesday-to-Sunday rush, says CheapAir CEO Jeff Klee. A Monday return, for example, cuts $90 from the $593 average domestic fare.

Get a delayed discount. Use the free deal-alert web app Hukkster to bookmark each gift you buy, and you'll be notified if the store cuts the price. Then ask for cash back. Most national retailers offer 15- or 30-day price adjustments, says co-founder Erica Bell.

  Angry traveler pays big bucks for tweet

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Magnify your charity. Give more, painlessly, by adding a matching gift from your employer. At least $10 billion in workplace matches go unclaimed annually, though 65% of big companies offer them. Yours doesn't? Find givers who do at matchingdonations.org.

Start LTC Planning Now, Save a Bundle Later: Genworth

Families could save almost $11,000 per year on out-of-pocket expenses for long-term care if they started planning a little earlier, a report released Monday by Genworth found.

Genworth surveyed more than 1,200 caregivers and recipients for the “Beyond Dollars: A Way Forward” report. More than half of those who identified as caregivers said they had lost income because of those responsibilities.

Care recipients who use professional care were more likely to have planned for that eventuality. Forty percent of respondents who receive care at a day facility made plans ahead of time to meet those needs, compared with 23% of people who moved into a family member’s home.

Long-term care is still a difficult subject for clients. Thirty-eight percent of care recipients said they didn’t address their needs because they didn’t want to admit care was needed, and 28% said they didn’t want to talk about it. Twenty-three percent said they weren’t sure where to start.

Wendy Boglioli, national spokeswoman for Genworth and a former Olympic swimmer, has been in the long-term care industry since 1998. She says that sometimes, it’s the advisors who don’t want to bring up the subject of long-term care. “I’m seeing the shift more and more," she said. "Ten or 15 years ago, advisors didn’t want to talk about it, but it has shifted. If they’re a little leery, they just need to understand that they owe this conversation to every single client they have.”

That reticence shifts a significant financial and emotional burden to family members. Thirty-eight percent of caregivers said they could have avoided a lot of stress if care had started planning earlier. Thirty-five percent of recipients agreed.

Boglioli stressed that young clients need to talk about long-term care just as much as older clients. “Long-term care might seem forever away,” she said, but it’s important to “fill in the blanks for them to be able to see what is coming down the road because it’s all about being prepared.”

Boglioli said most clients in their 40s, 50s or 60s already have “a long-term care story or situation” or are expecting one in their near future. “They’re pretty in tune to needing that conversation.”

It’s important to include family members in long-term care planning. “Family is the backbone of caregiving in this county,” he said, while adding that emphasis on family as caregivers is going to change. Older generations were more likely to have large families whereas younger families are more likely to have only one or two children. She recounted a story about her own family.

“My mother is going to be 93. She will have been in a nursing home in Wisconsin going on three years. I see my mother if not every month, at least every six to eight weeks. I’m one of seven and we all rotate through, so we’re all spending a fair amount of money to fly and spend several days with my mother: you’ve got to get a hotel, rent a car, so there’s those kinds of expenses as well as the cost of the nursing home. My mother is in a nursing home that costs $8,000 a month. Now, the good news is I’m one of seven children, so the seven of us are paying that bill. If I were a single child or one of a few, it would be astronomical.”

She suggested approaching clients about bringing family members in for a meeting over the holidays when out-of-town guests are visiting. “I usually see it around Thanksgiving or early in January.”

Many feel they made a mistake by not purchasing long-term care insurance. Almost 60% of respondents who didn’t have a policy wish they’d purchased one. Of those, 59% feel it would have been easier on their finances and put less strain on their family.

“There are only four ways to pay for care,” Boglioli said. The first way is through family and their support. Advisors need to “walk clients through what that looks like for them,” Boglioli said, so they can understand how it will affect the care they receive.

Government programs are another possibility. While Medicare does not cover most long-term care services, Medicaid does. “Today Medicaid does if you are in poverty or indigent,” Boglioli said.

Another way to pay for care is to self-pay, although Boglioli pointed out that this is where planning can get difficult. “What are the financial things we can do early on to build that nest egg, but as you build it, do you really want to spend that money on care?”

Finally, of course, is an insurance policy. “An [LTC] insurance policy is the least expensive way to go.”

However, one of the biggest obstacles to long-term care planning is just putting it off, Boglioli said. “When it comes to long-term care conversations, there are physical issues — will I need care or be providing care — financial issues, emotional issues; how do I get that all together? How do I coalesce that into a plan?”

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With its quickly growing population, emerging market superstar China is facing a bit of a problem- a surging electric bill. Back in 2010, the nation topped the U.S. to be the number one consumer of energy and seen overall energy consumption surge 111% from 1990 to 2008. Future projections for Asia�� Dragon continue that trend upwards for next few decades as China continues to modernize.

To cope with that exponentially rising demand, China isn�� just focusing on traditional fossil fuels such as coal, natural gas and oil. The nation has begun to tackle the issue with methods a bit more ��reen.��And according to a new report from the International Energy Agency (IEA), China will be leading producer of renewable energy in the next few decades.

For investors, China�� push to add more solar, wind and other alternatives could be one of the best long term catalysts for adding renewable energy to a portfolio.

The Biggest Player

China's breakneck economic growth has required vast amounts of energy, stemming from its heavy industry and infrastructure development. As a result, the Beijing government has taken on the task of balancing economic growth with responsible energy usage among its 1.3 billion people. The IEA�� latest World Energy Outlook report shows just how far China will go to meet its needs as well as balance the kinds of energy it produces.

Top 10 Diversified Bank Stocks For 2015: Rayonier Inc. REIT(RYN)

Rayonier, Inc. engages in the sale and development of real estate and timberland management, as well as in the production and sale of cellulose fibers in the United States, New Zealand, and Australia. The company operates in four segments: Timber, Real Estate, Performance Fibers, and Wood Products. Timber segment owns, leases, or manages timberlands and sells standing timber at auction to third parties, as well as sells delivered logs. Real Estate segment sells medium and large tracts of land with infrastructure. This segment holds development and rural properties primarily in the southeast United States. Performance Fibers segment manufactures cellulose specialties that are used principally in acetate textile fibers, cigarette filters, rigid packaging, LCD screens, photographic film, impact-resistant plastics, high-tenacity rayon yarn, pharmaceuticals, cosmetics, detergents, food casings, and food products; and absorbent materials that are used in disposable baby diapers, feminine hygiene products, incontinence pads, convalescent bed pads, industrial towels and wipes, and nonwoven fabrics. Wood Products segment primarily manufactures and sells dimension lumber used for residential and industrial construction applications. In addition, Rayonier involves in trading and exporting logs, lumber, and wood panel products. As of December 31, 2005, it owned, leased, or managed approximately 2.5 million acres of timberland and real estate. The company has a joint venture with RREEF Infrastructure to own and manage timber lands in New Zealand. Rayonier has elected to be treated as a real estate investment trust (REIT) for federal income tax purposes and would not be subject to federal income tax on its REIT income that it distributes to its shareholders. The company, formerly known as Rainier Pulp & Paper Company, was founded in 1926. Rayonier is headquartered in Jacksonville, Florida.

Advisors' Opinion:

• [By Matt DiLallo]

  For perspective, Weyerhaeuser owns almost as many total acres in the Pacific Northwest as Rayonier (NYSE: RYN  ) has in its entire portfolio, and well above the nearly 390,000 acres it has in the Pacific Northwest. Weyerhaeuser is also well above No. 2 timberland owner Plum Creek (NYSE: PCL  ) which holds just 471,000 acres in the Pacific Northwest. These newly acquired acres really puts Weyerhaeuser in a league of its own when it comes to having assets in the strategic Pacific Northwest.

• [By Dan Caplinger]

  Even with those unfavorable conditions, though, fellow forest-products REIT Rayonier (NYSE: RYN  ) reported second-quarter sales that more than doubled from year-ago levels thanks to the company's boost in ownership of a joint venture in New Zealand from 26% to 65%. Even excluding those effects, higher sawlog demand in its Gulf of Mexico region and strong export demand for its Pacific Northwest products offset higher logging costs. Those gains were much healthier than what Rayonier experienced in its performance-fibers division, but the company expects to exit the higher-cost portion of that business segment. Rayonier's results set the stage for similar performance from Plum Creek.

• [By Matt DiLallo]

  Not only are�homebuilders�benefiting�but this improvement in housing has had a nice effect on the bottom line of forestry companies.�Weyerhaeuser (NYSE: WY  ) �saw its first-quarter earnings more than triple as its wood products business reported its strongest quarterly earnings since 2005. Industry peer Rayonier (NYSE: RYN  ) also experienced a successful first quarter as its income from continuing operations nearly doubled year over year from $52 million last year to $103 million.

• [By Jake L'Ecuyer]

  Rayonier (NYSE: RYN) was also up, gaining 6.78 percent to $43.97 after the company reported Q4 results and announced its plans to separate into two public companies.

Top 10 Diversified Bank Stocks For 2015: Mckay Secs(MCKS.L)

McKay Securities PLC, a commercial property investment company, engages in the development and refurbishment of buildings in central London and the southeast of England. The company?s portfolio consists of office, industrial, retail, and residential properties. As of March 31, 2008, its property portfolio comprised 38 properties. The company was founded in 1946 and is based in Reading, the United Kingdom.

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Cohen & Steers Infrastructure Fund, Inc. operates as a closed-end, nondiversified management investment company. It invests primarily in a portfolio of common stocks, preferred stocks, and other equity securities issued by utility companies; and in preferred securities and other fixed income securities of other companies. The fund?s investment portfolio primarily includes investments in various companies operating in utilities, agricultural chemicals, financials media real estate, specialty, food products, insurance, oil exploration and production, automotive, telecommunications sectors. Cohen & Steers Capital Management, Inc. serves as the investment manager of the fund. The fund, formerly known as Cohen & Steers Select Utility Fund, Inc., was founded in 2004 and is based in the New York City.

Top 10 Diversified Bank Stocks For 2015: Rpt Uranium Corp (RPT.V)

ArPetrol Ltd. operates as a junior oil and natural gas exploration and development company in Latin America. It explores, develops, and produces oil and natural gas from concessions in Argentina. The company is also involved in third-party natural gas processing activities. It holds a 100% interest in the CA-11 Faro Virgenes concession covering an area of approximately 34,000 acres in the Santa Cruz province. In addition, the company owns and operates a gas processing facility with a capacity of approximately 85 million cubic feet per day in Argentina. ArPetrol Ltd. is headquartered in Calgary, Canada.

Top 10 Diversified Bank Stocks For 2015: Inter-Rock Minerals Inc.(IRO.V)

Inter-Rock Minerals Inc. engages in the production and marketing of specialty dolomite minerals for the beef, cattle, and dairy cow feed industries in the United States. The company also involves in the exploration of gold and copper mineral properties. Its property portfolio includes the Sentinel Peak, a gold property comprising 22 claims that covers 440 acres, as well as Cove Copper project consisting of 12 unpatented claims in Humbolt County, Nevada. The company also holds claims in a gold mining district of northwest Nevada. Inter-Rock Minerals Inc. is based in Toronto, Canada.

Top 10 Diversified Bank Stocks For 2015: Oracle Corporation(ORCL)

Oracle Corporation, an enterprise software company, develops, manufactures, markets, distributes, and services database and middleware software, applications software, and hardware systems worldwide. It licenses of database and middleware software, including database management software, application server software, service-oriented architecture and business process management software, data integration software, business intelligence software, identity and access management software, content management software, portals and user interaction software, development tools, and Java; and applications software comprising enterprise resource planning, customer relationship management, enterprise performance management, supply chain management, business intelligence applications, enterprise portfolio project management, Web commerce, and industry-specific applications software. The company also offers customers with rights to unspecified software product upgrades and maintenance releases; Internet access to technical content; and Internet and telephone access to technical support personnel. In addition, its hardware systems products consist of computer server and hardware-related software, including the Oracle Solaris Operating System; and storage products, such as tape, disk and networking solutions for open systems and mainframe server environments. Its hardware systems support solutions include software updates for the software components. Further, the company offers consulting solutions in business and IT strategy alignment, enterprise architecture planning and design, initial product implementation and integration, and ongoing product enhancements and upgrades; cloud services, including Oracle Cloud Services and Advanced Customer Services; and education solutions comprising instructor-led, media-based, and Internet-based training in the use of its software and hardware products. The company was founded in 1977 and is headquartered in Redwood Ci ty, California.

Advisors' Opinion:

• [By Paul Ausick]

  Oracle Corp. (NYSE: ORCL) also lost share and posted lower revenues, while fifth place Cisco Systems Inc. (NASDAQ: CSCO) gained 1.5% of market share and saw revenues rise by 42.6%. Cisco�� total second-quarter revenues, however, amounted to just $537 million.

• [By Chuck Carnevale]

  If you examine most of our greatest technology names, you discover that as a sector they are trading at below market valuations. Yet, as a sector, they have produced the strongest historical growth and are expected to produce some of the strongest future growth as well. Today we find Microsoft (MSFT) trading at a PE ratio of 11, Oracle (ORCL) at a PE ratio of 12.9, and Hewlett-Packard (HPQ) can be bought at a PE of only 7. Even the mighty Apple (AAPL) computer only trades at a PE ratio of 15. These appear to be extremely low valuations when you consider both the importance and the promise of the technology sector�� contribution to our future.

Top 10 Diversified Bank Stocks For 2015: Lorain Capital Corp(MWX.V)

Medworxx Solutions Inc. engages in the provision of health information technology solutions for hospitals primarily in Canada, the United States, and the United Kingdom. It develops technologies that are used to assist health care practitioners? abilities to communicate, aggregate, and analyze knowledge. The company offers patient flow solutions, including Medworxx utilization management, a clinically-based solution to assess, analyze, and advance patient flow challenges; Medworxx bed board, an electronic bed board that presents status indicators for every bed and patient; and Medworxx assessments for special patient flow measures. It also provides compliance and education solutions comprising Medworxx learning management system that supports the development, management, and delivery of classroom and online learning; Medworxx content management system, a content management system that is used by hospitals to improve the functionality and content of Intranet and Internet W ebsites; Medworxx policy and documentation management system, which enables healthcare organizations to automate and simplify the management and publication of policies and procedures in a Web-based environment; and Medworxx emergency readiness systems. In addition, the company offers maintenance and hosting, and consulting services. Medworxx Solutions Inc. was founded in 2004 and is headquartered in Toronto, Canada.

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Theratechnologies Inc., a specialty pharmaceutical company, engages in the discovery and development of therapeutic peptide products with a focus on growth-hormone releasing factor (GRF) peptides. Its primary products include EGRIFTA (tesamorelin for injection), an approved therapy for the reduction of excess abdominal fat in HIV-infected patients with lipodystrophy, which is marketed in the United States, Latin America, Africa, the Middle East, Europe, Russia, South Korea, Taiwan, and Thailand. The company was founded in 1993 and is headquartered in Montr茅al, Canada.

Top 10 Diversified Bank Stocks For 2015: Hewlett-Packard Co (HWP)

Hewlett-Packard Company (HP), incorporated on February 11, 1947, is a provider of products, technologies, software, solutions and services to individual consumers, small- and medium-sized businesses (SMBs) and large enterprises, including customers in the Government, health and education sectors. Its operations are organized into seven segments: the Personal Systems Group (PSG), Services, the Imaging and Printing Group (IPG), Enterprise Servers, Storage and Networking (ESSN), HP Software, HP Financial Services (HPFS) and Corporate Investments. The Company�� offerings include personal computing and other access devices; multi-vendor customer services, including infrastructure technology and business process outsourcing, technology support and maintenance, application development and support services and consulting and integration services, and imaging and printing-related products and services. It also provides enterprise information technology infrastructure, including enterprise storage and server technology, networking products and solutions, information technology (IT) management software, information management solutions and security intelligence/risk management solutions. As of October 31, 2011, HP owned an approximately 99% equity interest in Autonomy Corporation plc. In December 2011, the Company acquired Hiflex Software GmbH.

In March 2012, HP had consolidated PSG and IPG into a Printing and Personal Systems Group. HP continues to report the results of IPG and PSG separately. Subsequent o the fiscal year ended October 31, 2011, the Company completed five others realignments, which included the transfer of Indigo and Scitex support and the LaserJet and enterprise solutions trade support business from the technology services (TS) business unit within Services to the Commercial Hardware business unit within IPG; the transfer of the TippingPoint business from the Networking business unit within ESSN to Software; the transfer of the business intelligence services business from Corpor! ate Investments to a Application and Business Services (ABS) business unit within Services; the consolidation of the Application Services, Business Process Outsourcing and Other Services business units within Services into the ABS business unit, and the transfer of the information management services business from Software to the ABS business unit within Services.

Personal Systems Group

PSG provides commercial personal computers (PCs), consumer PCs, workstations, calculators and other related accessories, software and services for the commercial and consumer markets. The Company groups commercial notebooks, commercial desktops and workstations into commercial clients and consumer notebooks and consumer desktops into consumer clients. Commercial PCs include the HP ProBook and the HP EliteBook lines of notebooks and the Compaq Pro, Compaq Elite, HP Pro and HP Elite lines of business desktops, as well as the TouchSmart and Omni PCs, HP Mini-Note PCs, retail POS systems, HP Thin Clients and HP Slate Tablet PCs. Consumer PCs include the HP and Compaq series of multi-media consumer notebooks, desktops and mini notebooks, including the TouchSmart line of touch-enabled all-in-one notebooks and desktops. PSG provides workstations that run on both Windows and Linux-based operating systems.

Services

Services provide consulting, outsourcing and technology services across infrastructure, applications and business process domains. Services delivers to its clients by leveraging investments in consulting and support professionals, infrastructure technology, applications, standardized methodologies, and global supply and delivery. Services are divided into four main business units: infrastructure technology outsourcing, technology services, applications services and business process outsourcing. Infrastructure Technology Outsourcing services encompass the data center and the workplace (desktop); network and communications; and security, compliance and business contin! uity. It ! also offers a set of managed services. Technology Services provides support and consulting services, as well as warranty support across HP's product lines. HP's technology services offerings are available in the form of service contracts, pre-packaged offerings (HP Care Pack services) or on an individual basis. The Company�� Applications Services encompass application development, testing, modernization, system integration, maintenance and management. Applications Services also provides technology consulting and systems integration solutions and services that use cloud computing, hybrid delivery, enterprise mobility, information management and real-time analytics. Business Process Outsourcing services includes both industry-specific and cross-industry solutions. Its cross-industry solutions include a range of enterprise-shared services, customer relationship management services, financial process management services and administrative services.

Imaging and Printing Group

IPG provides consumer and commercial printer hardware, supplies, media and scanning devices. IPG is also focused on imaging solutions in the commercial markets. These solutions range from managed print services to capturing high-value pages in areas, such as industrial applications, outdoor signage, and the graphic arts business. Inkjet and Web Solutions delivers HP's consumer and SMB inkjet solutions (hardware, supplies, media, web-connected hardware and services) and develops HP's retail publishing and Web businesses. It includes single function and all-in-one inkjet printers targeted toward consumers and SMBs, as well as retail publishing solutions, Snapfish and ePrintCenter. LaserJet and Enterprise Solutions delivers products, services and solutions to the medium-sized business and enterprise segments, including LaserJet printers and supplies, multi-function devices, scanners, Web-connected hardware and services and enterprise software solutions, such as Exstream Software and Web Jetadmin. Managed Enterp! rise Solu! tions provides managed print services products and solutions delivered to enterprise customers partnering with third-party software providers to offer workflow solutions in the enterprise environment. Graphics Solutions provides large format printing (Designjet and Scitex), large format supplies, WebPress supplies, Indigo printing, specialty printing systems and inkjet high-speed production solutions. Graphic Solutions targets print service providers, architects, engineers, designers and industrial solution providers. Its printer supplies offerings include LaserJet toner and inkjet printer cartridges, graphic solutions ink products and other printing-related media.

Enterprise Servers, Storage and Networking

ESSN provides server, storage and networking products in a number of categories. The Company�� Converged Infrastructure portfolio of servers, storage and networking combined with HP Software's Cloud Service Automation software suite creates HP's CloudSystem. This integrated solution enables enterprise and service provider clients to deliver infrastructure, platform and software as a service in a private, public or hybrid cloud environment. Industry Standard Servers offers primarily entry-level and mid-range ProLiant servers, which run primarily Windows, Linux and Novell operating systems and Intel Corporation (Intel) and Advanced Micro Devices (AMD) processors. The business spans a range of product lines that include pedestal-tower servers, density-optimized rack servers and HP's BladeSystem family of server blades.

The Company�� Business Critical Systems delivers Converged Infrastructure with a portfolio of HP Integrity servers based on the Intel Itanium processor that run the HP-UX and OpenVMS operating systems, as well as HP Integrity NonStop solutions. Business Critical Systems also offers HP's scale-up x86 ProLiant servers for scalability of systems. In addition, HP continues to support the HP9000 servers and HP AlphaServers by offering customers. Th! e Company! �� storage offerings include storage platforms for high-end, mid-range and small business environments. Its flagship product is the HP 3PAR Utility Storage Platform, which is designed for virtualization, cloud and IT-as-a-service. The Storage business has a range of products, including storage area networks, network attached storage, storage management software and virtualization technologies, StoreOnce data deduplication solutions, tape drives and tape libraries. Its switch, router, wireless local area network (LAN) and TippingPoint network security products deliver solutions for the data center, campus and branch networks. Its networking solutions are based on HP's FlexNetwork architecture.

HP Software

HP Software provides enterprise IT management software, information management solutions and security intelligence/risk management solutions. Solutions are delivered in the form of software licenses or as software-as-a-service. HP Software solutions enables IT organizations to manage infrastructure, operations, application life cycles, application quality and security, IT services, business processes, and structured and unstructured data.

HP Financial Services

HPFS supports HP's global product and service solutions, providing a range of financial life cycle management services. HPFS enables its worldwide customers to acquire IT solutions, including hardware, software and services. The Company offers leasing, financing, utility programs and asset recovery services, as well as financial asset management services for global and enterprise customers. HPFS also provides an array of specialized financial services to SMBs and educational and Governmental entities.

Corporate Investments

Corporate Investments includes business intelligence solutions, HP Labs, webOS software and certain business incubation projects. Business intelligence solutions enable businesses connect and share data across the enterprise and apply analytics.! This seg! ment also derives revenue from licensing specific HP technology to third parties.

The Company competes with Dell, Inc., Acer Inc., ASUSTeK Computer Inc., Apple Inc., Lenovo Group Limited, Toshiba Corporation, IBM Global Services, Computer Sciences Corporation, Accenture Ltd., Fujitsu Limited, Wipro Limited, Infosys Technologies Limited, Tata Consultancy Services Ltd, SAP, AG, Oracle Corporation, Microsoft Corporation, Canon U.S.A., Inc., Lexmark International, Inc., Xerox Corporation, Seiko Epson Corporation, Samsung Electronics Co., Ltd., Brother Industries, Ltd., International Business Machines Corporation, EMC Corporation, NetApp, Inc., CA, Inc., BMC Software, Inc., Cisco, McAfee and IBM Global Financing.

Top 10 Diversified Bank Stocks For 2015: Hampton Roads Bankshares Inc(HMPR)

Hampton Roads Bankshares, Inc. operates as the bank holding company for Bank of Hampton Roads (BOHR) and Shore Bank that provide community and commercial banking services primarily to individuals and small to medium-sized businesses. It offers traditional loan and deposit banking services, as well as telephone banking, Internet banking, remote deposit capture, and debit cards. The company also accepts commercial and consumer deposits that consist of various forms of demand and time accounts, including checking accounts, interest checking, money market accounts, savings accounts, certificates of deposit, and IRA accounts. In addition, it provides a range of commercial, real estate, and consumer lending products and services; commercial and industrial loans; construction loans; real estate-commercial mortgage; real estate-residential mortgage; and installment loans to individuals. Further, the company offers travelers? checks, coin counters, wire services, and safe deposit b ox services. Additionally, it provides letters of credit and standby letters of credit, and cash management products to commercial customers. The company also offers insurance products to businesses and individuals; securities, brokerage, and investment advisory services; and non-deposit investment products, including stocks, bonds, mutual funds, and insurance products, as well as engages in originating and processing mortgage loans. As of June 2, 2011, the company operates 48 banking offices in Virginia and North Carolina; and 8 banking offices in the eastern shore of Maryland and Virginia. It operates a network of sixty-seven ATM machines. The company was founded in 1961 and is headquartered in Norfolk, Virginia.

Top 10 Diversified Bank Stocks For 2015: Orvana Minerals Com Npv (ORV.TO)

Orvana Minerals Corp., a mining and exploration company, engages in the evaluation, development, and mining of precious and base metal deposits. It primarily explores for gold, copper, and silver ores. The company�s principal property includes the El Vall-Boinas/Carles mine located in the Rio Narcea Gold Belt in northern Spain. It also owns and operates the Don Mario Mine project comprising approximately 70,100 hectares of contiguous concessions situated in eastern Bolivia; and the Copperwood copper project covering approximately 712 hectares in the Upper Peninsula of the state of Michigan, the United States. The company was founded in 1992 and is based in Toronto, Canada.

Top 10 Diversified Bank Stocks For 2015: Cincinnati Financial Corporation(CINF)

Cincinnati Financial Corporation engages in the property casualty insurance business in the United States. Its Commercial Lines Property Casualty Insurance segment provides coverage for commercial casualty, commercial property, commercial auto, and workers? compensation. It also offers specialty packages, including coverages for property, liability, and business interruption for specific industry classes, such as artisan contractors, dentists, or street businesses. In addition, this segment provides contract and commercial surety bonds, fidelity bonds, and director and officer liability insurance, as well as machinery and equipment coverage. The company?s Personal Lines Property Casualty Insurance segment offers coverage for personal auto and homeowners, as well as other insurance products, such as dwelling fire, inland marine, personal umbrella liability, and watercraft coverages to individuals. Cincinnati Financial?s Excess and Surplus Lines Property Casualty Insurance s egment offers commercial casualty insurance that covers businesses for third-party liability from accidents occurring on their premises or arising out of their operations, including products and completed operations; and commercial property insurance, which insures loss or damage to buildings, inventory, equipment, and business income from causes of loss, such as fire, wind, hail, water, theft, and vandalism. The company?s Life Insurance segment provides term insurance; universal life insurance; whole life insurance; and worksite products, which include term, whole life, universal life, and disability insurance offered to employees through their employer. This segment also markets disability income insurance, deferred annuities, and immediate annuities. Its Investment segment invests in fixed-maturity investments, equity investments, and short-term investments. Cincinnati also offers commercial leasing and financing services. The company was founded in 1950 and is headquarte red in Fairfield, Ohio.

Advisors' Opinion:

• [By Dan Caplinger]

  Investors have always been interested in stocks that pay dividends, but lately, low interest rates on bonds and other fixed-income investments have made solid dividend payers even more valuable. Among the most promising dividend stocks in the market is Cincinnati Financial (NASDAQ: CINF  ) , and one big reason is that it is one of the few exclusive companies to make the list of Dividend Aristocrats. In order to become a member of this elite group, a company must have raised its dividend payouts to shareholders every single year for at least a quarter-century. Only a few dozen stocks manage to make the cut, and those that do tend to stay there for a long time.

• [By Dividends4Life]

  According to a Gabelli Funds report, managed distribution policies offer several advantages, including:1. Lower difference between the fund�� market price and its NAV per share.2. Provides support during periods when the stock market is in a decline.3. Provides a measurable performance target for the investment adviser.Below are several high-yield funds from CEFA that have a managed distribution policy (yields as of December 16):Aberdeen Australia Eqty (IAF)- Distribution Yield: 10.4%- Income Yield: 3.46%Bexil Advisers LLC� (DNI)- Distribution Yield: 11.1%- Income Yield: 3.56%BlackRock En Capital&Inc (CII)- Distribution Yield: 8.78%- Income Yield: 2.34%Cornerstone Strat Value (CLM)- Distribution Yield: 18.77%- Income Yield: 1.83%Cornerstone Total Return (CRF)- Distribution Yield: 19.10%- Income Yield: 0.85%Delaware Inv Div & Inc (DDF)- Distribution Yield: 6.70%- Income Yield: 5.26%Gabelli Equity Trust (GAB)- Distribution Yield: 7.58%- Income Yield: 1.54%Gabelli Utility Trust (GUT)- Distribution Yield: 9.45%- Income Yield: 2.84%MFS Special Value Trust (MFV)- Distribution Yield: 9.60%- Income Yield: 5.73%Nuveen Tx-Adv TR Strat (JTA)- Distribution Yield: 6.70%- Income Yield: 3.12%TCW Strategic Income (TSI)- Distribution Yield: 10.54%- Income Yield: 7.88%Zweig Total Return (ZTR)- Distribution Yield: 7.27%- Income Yield: 1.95%As noted in the Gabelli report, a managed distribution policy may create confusion regarding the true current yield since the reported yield includes the return of capital portion. You can see the disparity above between the income yield and the distribution (reported) yield.If you are looking for a sustainable and growing dividend, you may want to consider some blue-chip dividend stocks such as these with a Free Cash Flow Payout less than 50%, 50+ years of consecutive dividend increases and a 2%+ yield:3M Co. (MMM) is a diversified global company provides enhanced product functionality in electronics, health care, industrial, consumer

• [By Charles Carlson]

  If you are new to DRIP investing, treat yourself to a few DRIPs this holiday season. Trust me��t'll change your life.

  American Water Works (AWK)��ielding 2.7% with a DRIP minimum of $100
  
  Cincinnati Financial (CINF)��ielding 3.2% with a DRIP minimum of $25
  
  CVS Caremark (CVS)��ielding 1.4% with a DRIP minimum of $100
  
  Dominion Resources (D)��ielding 3.4% with a DRIP minimum of $40
  
  Domino's Pizza (DPZ)��ielding 1.2% with a DRIP minimum of $65
  
  Eaton (ETN)��ielding 2.3% with a DRIP minimum of $100
  
  Flowserve (FLS)��ielding 0.8% with a DRIP minimum of $100
  
  Kellogg (K)��ielding 3.0% with a DRIP minimum of $50
  
  New Jersey Resources (NJR)��ielding 3.7% with a DRIP minimum of $100
  
  Quest Diagnostics (DGX)��ielding 2.0% with a DRIP minimum of $100
  
  Tim Hortons (THI)��ielding 1.7% with a DRIP minimum of $25
  
  

  Subscribe to Dow Theory Forecasts here��/p>

Top 10 Diversified Bank Stocks For 2015: Li3 Energy Inc(LIEG.OB)

Li3 Energy, Inc., an exploration stage company, focuses on the discovery and development of lithium and potassium brine and nitrate, as well as iodine deposits in Chile, Argentina, and Peru. It holds interests in the Maricunga project, which consists of mining concessions covering an area of approximately 3,553 acres located in the Salar de Maricunga in northern Chile; Cauchari mining concession covering an area of approximately 2,995 acres situated on brine salars in Argentina; and undeveloped mineral claims covering an area of approximately 19,500 acres located in the Regions of Puno, Tacna, and Moquegua in Peru. The company was formerly known as NanoDynamics Holdings, Inc. and changed its name to Li3 Energy, Inc. in October 2009. Li3 Energy, Inc. was founded in 2005 and is based in Lima, Peru.

The Week Ahead: Another Wave of Panic Selling?

The debt ceiling is widely seen as more important than the government shutdown, but as the two events get closer together, MoneyShow's Tom Aspray examines the technical evidence for signs of potentially deeper corrections ahead.

As we ended last week with no end in sight for the government shutdown, the economists were weighing in on its potential impact. In a recent WSJ article, the conclusion was that "The furloughs are likely to knock 0.1 to 0.2 percentage point off the annualized rate of fourth-quarter economic growth for each week that it lasts."

There are a wide range of views as some feel that the chances of a big economic shock and severe market decline have increased significantly while others worry about the complacency. Others are not expecting such a significant impact as they feel that the markets have already priced it in and a "shutdown for a couple of weeks would be unlikely to be detrimental."

Top Communications Equipment Stocks To Buy Right Now

There is more agreement regarding the impact of a failure to raise the debt ceiling but most feel that the adults won't let that happen. Global monetary authorities are also voicing their opinions as the IMF's Christine Lagarde expressed her concerns over the debt ceiling while the ECB's Mario Draghi is concerned over the impact of a prolonged government shutdown.

In the past two years, there have been three example of politically induced panic selling. The first started in late July and early August of 2011 as the debt ceiling debate ended in a stalemate. This was a decline that was difficult to withstand as the S&P fell from an early July high of 1356 to an October low of 1074. This was a drop of 20.8% from high to low. Soon after the October low, there were clear signs from the market internals that a low was in place.

The markets also reacted poorly to the re-election of President Obama as the Dow Industrials lost 800 points in eight days. The next month, stocks dropped 3.5% at the end of December in reaction to the fiscal cliff stalemate. Before this decline, the A/D line broke out to the upside indicating a pullback would be a buying opportunity.

I would not be surprised to see a 3-5% decline if the government shutdown persists for another week or so. A failure to raise the debt ceiling before the deadline is likely to have a much more severe impact on the global equity markets.

There are no signs of panic in the bond market as yields have declined in an orderly fashion. The weekly chart of the 10-year T-note yield shows the recent top in yields as first support in the 2.545% to 2.636% has been reached. The 38.2% Fibonacci retracement support is at 2.372% with the 50% at 2.197%. This is the likely downside target zone for the fourth quarter.

The daily chart of the Vanguard Total Bond Market ETF (BND) does show a completed bottom formation on the daily chart. From the late April highs to the early September low, BND lost over 6%.

The daily on-balance volume (OBV) formed a bullish divergence, line c, at the lows. The bottom was confirmed by the move through the downtrend, line b, and the July high. The next level to watch is the 38.2% Fibonacci retracement resistance at $81.54 and then the 50% at $82.54. This decline in yields should be an opportunity to shorten the maturity of your bond holdings and reduce your exposure to the long end of the bond market.

The Eurozone markets, like the Dax Index have not yet been hit with heavy selling. It is still up well over 44% since the June 2012 lows and is just 2% below its recent highs. The % change chart of the S&P 500 shows that it is now up 31%, which is down from last month's high of 34.5%.

NEXT PAGE: What to Watch

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Canaccord Genuity Raises Price Target on Avago (AVGO)

Canaccord Genuity announced on Monday that it has raised its price target on Avago Technologies Ltd (AVGO).

The firm has maintained a “Buy” rating on AVGO, and has increased the company’s price target from $45 to $53. This price target suggests a 20% upside from the stock’s current price of $42.55.

Analyst Michael Walkly commented: "Teardown analysis of the iPhone 5S and 5C by iFixit suggests Avago has maintained very strong RF dollar content share.”

“We believe these trends are consistent with our long-term thesis that Avago is well positioned to benefit from the rapidly growing demand for FBAR/BAW filters needed to support the growing mix of LTE smartphones.”

“We also believe Avago’s proprietary technologies, strong IP portfolio, and diverse customer base in several growth markets position the company for strong long-term growth trends with industry leading margins,” added the analyst.

Looking ahead, the analyst expects to see 2015 EPS of $3.93 per share. Revenue is expected to be $3.4 billion.

Avago Technologies shares were up 93 cents, or 2.26%, during Monday morning trading. The stock is up 34% YTD.

Don’t Ditch Bonds

Interest rate increases wreak havoc with bond returns. When interest rates rise, the principal values of older bonds decline as buyers flock into higher yielding new issues. But as inflation and interest rates creep upwards in the coming months, you’d be foolhardy to foresake bonds altogether. We explain why, as well as pinpoint a bond fund appropriate for this investment climate.

Let’s start with the graph below, from the Federal Reserve Bank of St. Louis, which shows the effective federal funds rate—the Fed’s benchmark interest rate—since the 1950s.

Knowing that rising interest rates are bad for bonds, it comes as little surprise that the single worst one-year period for bonds was 1980, when the federal funds rate whipsawed from 14 percent to 8.5 percent then back up to 20 percent. In that year, the aggregate return on bonds was -15.5 percent, as investors struggled to get a handle on the direction of interest rates.

The worst 20-year period for bonds, again not surprisingly, was between 1961 and 1981 as the fed funds rate gradually drifted higher from about 2 percent to 20 percent. Over that period, the aggregate return on bonds was -40.8 percent.

10 Best Penny Stocks To Buy Right Now

But bonds don’t always respond negatively to increases in the fed funds rate. Looking at the trailing one-year returns of 10-year Treasury bonds, bonds typically hold their own even when the interest rate ticks up.

In fact, in the four instances that 10-year Treasuries had a negative return in the 30 years between 1983 and 2013 (1987, 1994, 1999 and 2009), the fed funds rate was only on the rise in 1994. Over the course of that year, the federal funds rate rose from 3.25 percent to 5.5 percent, shaving more than $600 billion over the value of the US bond market.

So why did the massacre happen in 1994?

After nearly three years of economic growth and relatively tame inflation, commodity prices were beginning to rise and inflationary pressures grew. In response, the Fed tightened interest rates just slightly by 25 basis points. The move came like a lightning bolt out of the blue and the hikes just kept coming.

Much like today, in 1994 investors were accustomed to a low interest rate world. While there was the added dilemma of high gearing in the bond market in those days, the real crux of the problem was that investors were ignoring signs of a return to healthy growth in the global economy.

That scenario should sound familiar to investors today.

There’s no denying that the US recovery since the Great Recession has been anemic, but it has led the global economic rebound. The International Monetary Fund (IMF) raised its global growth forecast earlier this month by 0.1 percentage point to 3.7 percent, largely thanks to the fact that it bumped its outlook for US growth by 0.2 percentage point to 2.8 percent this year. While the picture on US jobs remains mixed, household net worth has regained the ground it lost in the recession, mostly because of improving home prices.

The IMF also boosted its outlook for Japan, the euro zone and China and only shaved its forecasts for Russia (down 1 percent) and Latin America (down 0.1 percent).

The global growth picture for 2014 looks good overall, with many equity markets somewhat overvalued.

Nonetheless, Fed Chairperson Janet Yellen has signaled repeatedly that she intends to keep interest rates at their current levels through 2015, even as the Fed tapers off its bond purchases. At the same time, the European Central Bank is unlikely to back off its own near-zero percent interest rate policy and the Bank of Japan is still actively pouring stimulus money into that country’s economy.

Thanks to those easy money policies, inflation expectations are picking up.

The graph below shows the breakeven rate, or the spread between the yield on a 10-year Treasury bond and a comparable Treasury Inflation Protected Security (TIPS). When the spread widens, investors are betting on growing inflation.

As you can see, inflation worries have been growing since December, even as the US central bank has stuck to its guns on low interest rates. Odds are, when the rate increases finally happen, investors will be stunned all over again. Looking at the futures curve on Treasury bonds, most investors aren’t betting on a rate increase over the next couple of years.

So while interest rate increases are never good for the value of fixed-income securities, bonds take the worst hit when those increases are largely unexpected. If you pair that with growing inflation expectations as occurred in the 1970s and early 1980s, the effect is even worse, widening the drawdown by between -0.5 percent and -6.0 percent, according to Federal Reserve research.

But even as the Fed walks a tightrope over interest rates, investors can’t abandon bonds either.

The temptation is to dump bonds in this type of environment, but they still add diversification value and a steady stream of income to your investment portfolio. That’s particularly true when you own well-diversified bond funds where managers can spread their bets and “upgrade” their holdings as the investment environment evolves.

Reexamine your asset allocation to determine if you should shorten the average duration (a measure of interest rate sensitivity) of your holdings. But don’t abandon bonds altogether, because they typically offer lower volatility than stocks and throw off predictable income.

Consider adding bond funds that offer interest rate and inflation hedges to your portfolio.

We take issue with the way the US government calculates inflation, but TIPS still look increasingly attractive in the current environment. With the general consensus being that headline US inflation will likely reach 2.5 percent this year even by the official measure, TIPS will put last year’s loss as an asset class well behind them.

While there are several exchange-traded funds (ETFs) devoted to TIPS, my favorite is PIMCO 1-5 Year US TIPS Index (NYSE: STPZ).

This ETF has one of the lowest durations of any of the TIPS funds at 2.7 years, so it won’t take much of a ding based on shifting interest rates.

There are cheaper TIPS funds available, but this one’s expense ratio of 0.20 percent is average for its category. It’s also worth the slightly higher expense because its short duration also means that its performance is more correlated to shorter-term inflation expectations, which is precisely what we want in the current climate.

With solid inflation hedging characteristics and little interest rate sensitivity, PIMCO 1-5 Year US TIPS Index is a terrific hedge up to 60.

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Stock Market News Today: Syria, Jobs, Septaper, and the Biggest Share-Price Moves

In major stock market news today, markets are pulling out of losses at midday after volatile morning trade. Investors pulled out of markets after Russian President Vladimir Putin today vowed to back Syria in the event of a U.S. attack.  

U.S. President Barack Obama, joining Putin at the G-20 Summit in St. Petersburg today, repeated his message that a U.S. attack would not be full scale, but would be on par with a recent attack on Damascus.

In other stock market news today, investors learned that the United States added 169,000 jobs in August as unemployment dropped slightly to 7.3% from 7.4%, according to the U.S. Labor Department. It was fewer jobs than economists anticipated.

And fewer people were looking for work as the labor force participation dropped to 63.2%, which is the lowest level since 1978, according to MarketWatch. Many investors suspect the worse-than-expected jobs data could delay the U.S. Federal Reserve's plans to ease out of its bond-buying program starting after the Sept. 17-18 Federal Open Market Committee (FOMC) meeting (Septaper).

Meanwhile, Chicago Federal Reserve President Charles Evans hinted that the Fed could begin increasing interest rates in 2015 as unemployment falls below 6.5%.

Amid the mixed economic data this week, Treasury yields, which have been rising all week, dropped today as Treasury prices rose on the jobs report data. The 10-year Treasury prices are up about 1% this morning.

Consumer Stocks in the News

Among top stock market news today, the consumer, technology, and healthcare sectors hold several movers...

In consumer stocks news, Mattress Firm Holding Corp. (Nasdaq: MFRM) shares are down 15% as the company reported Q2 adjusted earnings per share (EPS) of $0.43 versus consensus estimate of $0.51. Net sales were $302.5 million, compared to the $323 million the Street expected. Year-ago adjusted EPS was $0.42, on net sales of $262 million.

And, Ford Motor Co. (NYSE: F) says it may allow its chief executive officer to step down sooner than originally planned under a succession plan outlined last night, Reuters reports. Ford shares are down about 1%.

Healthcare Stocks in the News

Atossa Genetics Inc. (Nasdaq: ATOS) shares are up about 6% in midday trading due to a cancer breakthrough it plans to showcase this weekend...

Atossa will exhibit its ForeCYTE Breast Health Test at the 2013 Breast Cancer Symposium in San Francisco, CA, which starts Saturday.

Altossa's test detects reversible precancerous conditions in the breast up to eight years before the conditions turn into cancer. It uses no radiation and does not require invasive biopsy needles or surgical incisions.

Energy Stocks in the News

In energy stock news today, Layne Christensen Co. (Nasdaq: LAYN), a water management, construction, and drilling company, is down 6% today after it swung to a loss of $1.17 per diluted share in fiscal Q2 from a profit of $0.24 a year earlier. Q2 revenue declined to $232 million from $288 million. Analysts had expected an adjusted loss of $0.39 on revenue of $261 million.

And, GasLog Ltd. (NYSE: GLOG) is up 2.4% after it announced it has signed a memorandum of agreement to acquire the STX Frontier, a 153,600 cubic meter liquefied natural gas (LNG) carrier, from Singapore-based STX Pan Ocean LNG PTE. Ltd. The acquisition cost of the vessel is in the vicinity of US$160 million.

This Week's Major Stock Market News

In fact, GasLog's acquisition of STX Frontier is just one of several major mergers and acquisitions this week, especially in the technology sector...

Hot Performing Companies To Own For 2015

Nokia Corp. (NYSE ADR: NOK) rose more than 44% Monday after announcing a deal with Microsoft Corp. (Nasdaq: MSFT). Microsoft said it will purchase substantially all of Nokia's Devices & Services business, license Nokia's patents, and license and use Nokia's mapping services in a more than $7 billion deal.

And, also Monday, Verizon Communications Inc. (NYSE: VZ) surprised investors when it said it will pay $130 billion for Vodafone Group's (Nasdaq: VOD) 45% stake in VZ's wireless venture.

Along with communications technology, several other sectors were noting strong movements this week, including solar stocks and dry bulk shipping. Solar stocks have soared since JPMorgan said today the industry has significant room for growth. Suntech Power Holdings Co. Ltd. (NYSE ADR: STP) shares were up about 2.2% in afternoon trade.

And dry bulk shippers like FreeSeas Inc. (Nasdaq: FREE), Seanergy Maritime Holdings Corp. (Nasdaq: SHIP), and Eagle Bulk Shipping Inc. (Nasdaq: EGLE) are noting big gains today as shipping rates strengthen. FREE is up 8%, SHIP is up 13%, and EGLE is up 7% as capesize shipping rates increased overnight by about 10%, exceeding $20,000 for the first time since January 2012.

Now on to today's main story for Money Morning members: There's a major slip coming in the U.S. housing market "recovery." Misleading reported numbers mean you might have missed the signs - unless you read this just-released update from our housing market expert Shah Gilani.

DOL set to take a look at 'brokerage windows' in 401(k) plans

The Labor Department is poised to take a closer look at whether investors are protected in company retirement plans that enable employees to go beyond the plan's menu to choose investments.

The department is scheduled to release a request for comment in April on so-called brokerage windows in 401(k) plans. The mechanisms provide a way for workers to select investment vehicles that are not offered offered in the plan.

In 2012, the DOL addressed concerns about brokerage windows in two Field Assistance Bulletins. But the answers to the frequently-asked-questions posed in the documents generated more questions in the financial industry.

The comment solicitation is the first stage in a “rule-making project” that will focus on the “fiduciary obligations and regulatory safeguards” surrounding brokerage windows, according to the DOL, which put the topic on its regulatory agenda for the first time.

“This is potentially the beginning of a regulatory effort on brokerage windows that could be very broad and significant,” said Bradford Campbell, counsel at Drinker Biddle & Reath and a former DOL assistant secretary for the Employee Benefits Security Administration. “It is one of the surprises on the regulatory agenda. They're sticking their toe in the water.”

Plan sponsors are looking for more guidance on the use of brokerage windows, according to Timothy Kennedy, a partner at Montgomery McCracken Walker & Rhoads. There are questions about disclosures as well as whether a registered investment adviser has to be hired to help participants.

“It's a little unclear out there the fiduciary framework for brokerage windows,” Mr. Kennedy said. “Right now, people are doing their best. A more clear process would help plans.”

Harold Anderson, president of Parkshore Wealth Management, supports brokerage windows because they benefit clients who work for companies that provide limited investment options in their 401(k) plans. One large California employer, for instance, doesn't offer emerging market, real estate or small-cap value options.

“It allows the person to go out, especially working with a good adviser, and build a portfolio that's really adapted to their needs and risk tolerance,” Mr. Anderson said. “It's more custom to them.”

The efficacy of brokerage windows depends on who's using them, said Neal Solomon, managing director of WealthPro.

“When you get into something that is self-directed, all the risks and rewards that come with somebody having complete control of their own investment decisions comes into play,” Mr. Solomon ! said. “The individual participant may or may not be sophisticated as an investor.”

The brokerage windows need to have some kind of safeguards, Mr. Anderson said.

“You don't want people to lose their life savings,” Mr. Anderson said. “I think it's good to have some kind of warning light to say, 'Get an adviser,' or understand that the investment choices you make may not be as good as the investment choices the plan trustees have made on your behalf.”

Brokerage windows are not widespread. In 2012, they were offered in 17.1% of 686 401(k) plans surveyed by the Plan Sponsor Council of America.

“It's more of a niche in the industry,” said Robert Kaplan, national retirement consultant at ING U.S.

The focus on brokerage windows reflects the DOL's concern that plan participants are on their own if they opt to use the mechanism.

“They may make their decisions on emotion rather than investment savvy; that's the Department of Labor's worry,” Mr. Kaplan said.

Even when a brokerage window is included in a retirement plan, its use may be limited. The Employee Benefit Research Institute has included the mechanism in its plan for more than a decade.

“Over all these years, I'm the only one who's used it,” EBRI chief executive Dallas Salisbury said.

But he said that it is an important part of EBRI's retirement program for its employees.

“In a self-directed plan, you should allow individuals to pursue whatever [investment] fits their risk tolerance,” Mr. Salisbury said.

Johnson & Johnson Posts Higher Q4 Sales; Beats EPS Estimates; Gives Earnings Guidance (JNJ)

Before the opening bell on Tuesday, Johnson & Johnson (JNJ) announced its fourth quarter and full year earnings results, posting higher sales for both time frames compared to last year’s Q4 and full year figures.

JNJ Earnings in Brief

Johnson & Johnson’s worldwide quarterly sales came in at $18.4 billion, up 6.3% from last year’s Q4 sales of $17.6 billion; however, due to negative currency impacts, the sales gain comes in at 4.5%. Excluding special items, JNJ’s net earnings for the quarter came in at $3.6 billion, or $1.24 per share, increasing from $3.4 billion, or $1.19 per share, in last year’s Q4. JNJ beat analysts’ estimates of $1.20 EPS on revenues of $17.95 billion. The company announced full year sales of $71.3 billion and EPS of $4.81, marking increases from last year’s full year results. Looking ahead to full year 2014, JNJ gave earnings estimates in the range of $5.75 to $5.85, which is on the low end of what analysts are looking for.

CEO Commentary

Alex Gorsky, JNJ’s CEO and chairman, had the following to say about the company’s earnings report: ”Johnson & Johnson delivered strong results in 2013 led by the outstanding performance in our Pharmaceutical business, the strength of key brands in our US OTC and other Consumer businesses and continued progress in integrating Synthes into our Medical Devices and Diagnostics business.  We also advanced our longer term growth drivers, bringing innovative solutions to the global healthcare market and executing with excellence. I am proud of our exceptional Johnson & Johnson colleagues for their commitment to leading with purpose and advancing health and well-being for patients and consumers around the world.”

No Mention of Dividend

JNJ did not mention any dividend changes in its earnings report. The company most recently announced a dividend increase in April 2013, when it raised its dividend from 61 cents to 66 cents per quarter. The company will pay its next quarterly dividend on March 11, and the stock goes ex-dividend on February 21.

Stock Performance

JNJ’s stock was up 55 cents, or 0.58%, in pre-market trading. YTD, the company’s stock is up 4.43%.

Here's how you can manage multiple financial goals

While you can consider hybrid debt funds to manage your short term goals, you should focus on equity funds to fulfill your long term targets, Rustagi said.

Here is the edited transcript of the interview on CNBC-TV18.

Q: I can invest Rs 20,000 per month. I require Rs 5 lakh in the next three years and Rs 30 lakh in the next 20 years for child education. I also require Rs 35 lakh for my child's marriage and Rs 1 crore for retirement after 30 years. Right now, I have invested Rs 5 lakh in the stock market and mutual funds. I have around Rs 1.80 lakh by way of mutual funds. How should I allocate the money?

A: Clearly, you have taken the right steps to begin with. For example, you have defined your goal and you know exactly how much is the time horizon for each of your goals. Also, you have set some targets which are the first steps to start financial planning.

Your short term goal, which is three years away, is not long enough for you to make your portfolio very aggressive. In fact, I would also say that the portfolio for each of the goals has to be separate. Don't make a mistake of having one combined portfolio because as you yourself mentioned, the time horizon for each of these goals is different. So try and make individual portfolio for each of these goals so you can keep track of it and you will know exactly which direction your portfolio is going.

Coming back to this three year goal, since you don't have long enough time horizon, you need to focus on options, which are not very aggressive. At best, you can look at some debt oriented hybrid funds. Typically, in this category, you have monthly income plans, where you can opt for growth options or asset allocation plan.

MIPs typically invest around 80-85% in debt and the rest is invested in equity. Some of the fund that you can consider here are Reliance MIP or DSP Blackrock MIP. In the asset allocation space, you can consider IDFC asset allocation fund.

For your long term goals, your focus has to be on beating inflation and earn a positive real rate of return which is gross return minus inflation. Your focus has to be on equity funds. You already have some of the equity funds in the portfolio. You already have around five ELSS and four open ended funds.

Considering your current investment, I think you have far too many funds. You need to reduce the number of funds. Remember that most likely if DTC is implemented from April 1 next year, ELSS schemes will cease to exist. So whenever you complete three years in those ELSS funds, try and exit from there and reinvest that money in some of the existing funds.

In your existing portfolio, you can retain HDFC Top 200 . You can also retain SBI Magnum Emerging Business Fund . From the other two funds that you have - Reliance Growth and Reliance Natural Resources, I would say opt for a fund like Reliance Top 200 . As a combination, that will be good. Since you have to invest some more money for your other goals, maybe you can add one or two funds and that should suffice for your portfolio.

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Should you remain invested in mutual funds?  Monthly Income Plans: Should investors put money in? 

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Tags: Hemant Rustagi, Wiseinvest Advisors, investment, mutual fund, equity, insurance

No intent to control capital; fund-raising door open: FM

No intent to control capital; fund-raising door open: FM

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Federal Reserve Overstepped Bounds with Monetary Policy

By EconMatters  

  Checks & Balances   If you think about it the President has checks and balances, the Supreme Court has checks and balances, and even the two houses of Congress have checks and balances.    However as we have seen with the last 5 years of Fed policy that there is no actual checks and balances for what the Federal Reserve can and cannot do with regard to monetary policy, and there should be.  It might not be so apparent now, but it sure will be five years from now when all is evaluated. The big takeaway will be how in the heck did we let the Federal Reserve conduct all of these ad-hoc policy initiatives with some obvious detrimental effects and unintended consequences for financial markets and the US economy?    Where would Markets Go without $75 Billion assistance each month?   Let us start with the most obvious detriment to financial markets the bubble that is the US equities market. Despite what Goldman Sachs says  with their double speak to appease wealthy clients who they told to be invested in markets last week and this week said the markets are 10% over-valued, but there is no bubble – there is in fact a bubble in stocks.     Seems like a Bubble   The barometer to use is this: If the Fed stopped cold turkey tomorrow all asset purchases, the Dow would drop 3,500-4,000 points in less than a year (maybe even as little as 6 months), and this is a conservative 25% drop in value just in the short term.    If they were never allowed to intervene in financial markets with asset purchases ever again, eventually markets would fall back to sustainable levels, and all the previous liquidity fueled price appreciation in equities of the last 5 plus years would eventually come out of assets like stocks and real fundamental value would be established.    My guess is that the Dow would fall back to around the 1,000 level on its own merits over the next 3 years with no asset purchases whatsoever by the Federal Reserve, something in the order of a 40% drop in value.   Bond Market: A Debt Risk Valuation Mechanism    The Bond market is intended for debt to be issued by parties with parties independent of the debt issuers to then determine a fair market price for the risk of holding said debt in the marketplace, and not a social instrument for creating additional liquidity in financial markets which finds its way into the equities, commodities and currency markets via carry trade liquidity driven fund flows.     It is supposed to be a risk profiler to keep governments and issuers in check in regard to issuing responsible debt at appropriate times. When debt levels reach unsustainable levels, a healthy and natural bond market prices risk accordingly; thereby incentivizing necessary changes to fiscal and monetary policies.    This mechanism has been greatly distorted by Fed policy, and the long-term consequences are hard to adequately calculate at this point, but they are definitely a cost – the debate is just how high a cost?    Stock Market: A Valuation Mechanism   The most important point is this the stock market was intended to be a valuation mechanism for public companies based upon how well their business was being run, the economics of their given business paradigm, and the health of the broader macro-economic fundamentals of the market for their goods and services.   Social Engineering Instrument   It was not built as an instrument for social engineering, manipulation by a government entity, or tool to be used for monetary policy; private companies went public to raise additional financing for their capital structure to grow the business, and the market put a value on the business based upon the future prospects of the given business.    It was never intended as a risk free enterprise. Companies were going to fail, investors were going to lose money; others would flourish, investors would reward these companies with higher stock prices. Fundamentally, the market mechanism would both reward and punish based upon actual operating results of the companies.    This is how a healthy financial market is supposed to work, and we have devolved so far from this healthy and natural market valuation model that there cannot without question be major price discovery distortions in stocks, as in, a bubble in stocks, and the stock market pricing mechanism in general!   The Fed has positively incentivized the more Nefarious Elements of Stock Buybacks   Stock buybacks are bad enough, and have distorted operating results considerably with artificially making earnings appear better than they actually are, it provides incentives for other investors to front-run these company buybacks, and they are not being used properly these days by companies, i.e., buying back when shares are cheap relative to company prospects, and selling shares when they are expensive relative to company prospects – again a natural valuation mechanism.    Instead they are being utilized by management to distort prices not because business prospects are so bright, but rather they can borrow cheaply right now ( again thanks to the Fed) and artificially boost their own stock prices and make shareholders happy in their performance of running and managing the company.    Stock buybacks have in a sense become so perverted from their original purpose that they have become payoffs to like and invest in the company, not because the company is performing so well from an operation`s standpoint, but because they are going to buy back their own stock. It becomes both a deterrent for shorting the stock, and sort of 'mafia bribe' for shareholders to invest in the company.    Remember, this isn`t even company money, these companies are borrowing to buy back shares! This is fundamentally as screwed up from a management standpoint as one can get, one should borrow money to grow the business and create long-term value, not create balance sheet liabilities for the company solely for the purpose of juicing up the company`s stock price!    This further distorts actual natural market pricing in stocks, there is no actual business evaluation going on currently in financial markets, there are just liquidity injections or price distorting practices.   Textbook Definition of Bubble: Non Market Price Discovery    Moreover, since all these liquidity injection practices are from the long side, it would stand to reason that value is being distorted heavily to the upside, this is about as close to the text book definition of a bubble that one could possibly create, and the Federal Reserve is at the heart of doing just this act!    The stock market I repeat is supposed to be an evaluator of companies, and not a social welfare program to bring about some higher good for economy policy.      Even if they succeeded in creating a short-term wealth effect for a portion of the population that ended up trickling down to some small extent to the broader economy, the damage to the already shaky financial markets that have crashed three times in fifteen years from a long-term perspective is just a case of the Fed overstepping their bounds and destroying financial markets in the process! On any reasonably weighted Cost/Benefit Analysis this is just too high a price to pay!   Do not Trust Anything an I-Bank says for Public Consumption   Goldman Sachs like many of these investment banks have benefited immensely from the Fed overstepping their bounds in financial markets with asset purchases, they are never going to openly tell the American public whether there is a bubble in stocks.      In fact, they have a long history of not even telling their own clients their actual feelings on markets. And given how many times these investment banks have royally screwed up their own financial investments, half of them probably have no clue of the conditions ripe for constituting a bubble in the first place until after the fact!    Precedents & Moral Hazard    The real overstepping by the Federal Reserve to actually buying up financial assets has severely distorted the market process, and the long-term damage to what financial markets are supposed to be about from an overall philosophy, fundamental and mechanical methodology standpoint with the associated costs is really incalculable.      How do you put a value on destroying natural price discovery in financial markets? You cannot, so despite the current size of the bubble the fed has created short-term, the long-term bubble of completely destroying actual price discovery in financial markets by being able to step in and buy financial assets in markets is the real harm here.    Moreover, that this act has become acceptable fed policy turf, this precedent and the fact that there were no proper checks and balances to restrict and question this intervention is the harmful and malicious fallout that will inevitably become the Bernanke Legacy.   Either Markets are forever Annual Social Welfare Policy Programs or Legislation is Required to Restrict future Fed Intervention in Financial Markets with intermittent Asset Purchases   There are many other measures the Fed could entertain instead of the path that Bernanke chose in destroying forever the concept of what constitutes a market mechanism.    Consequently unless the Fed has forever changed what markets actually are, social good mechanisms for government wealth creation, and that means a socialized commitment for eternity, i.e., the market must appreciate 10% every year regardless of broader economics or fundamentals.    Then they have caused more damage by creating a short-term bubble that is unsustainable on its own, and have set the stage for future ad-hoc interventionist asset purchases in markets on equally subjectivist timeframes and justification!    This is the real area where the Fed is guilty of overstepping its bounds. They have forever destroyed financial markets with interventionist policies, and future legislation will have to be created to limit the Fed`s power in this area, and restore financial markets back to their intended purpose.     Yes financial markets are built and intended to fail at times, once they are no longer allowed to fail, they become state tools for policy outcomes. And this reality is a bigger failure in a democratic state, than any short-term and well-meaning goals that result from such policies.   

© EconMatters All Rights Reserved | Facebook | Twitter | Post Alert | Kindle

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

Posted-In: Economics Federal Reserve Markets

Originally posted here...

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Top Oil Companies To Buy Right Now

Oil and gas MLP�LINN Energy (NASDAQ: LINE  ) announced yesterday its monthly distribution of $0.2416 per unit, the same rate it's paid for the past two months after switching to a monthly payout scheme.�The distribution is payable Sept. 13 to unitholders of record at the close of business on Sept. 10.

The board of directors also announced that LinnCo (NASDAQ: LNCO  ) declared a monthly dividend of�$0.2416 per share payable on Sept. 16 to holders of record on Sept. 10. LinnCo has no operations or assets and was created for the sole purpose of owning shares of LINN Energy�so that it can receive distributions from the MLP and convert them into regular dividends.

The distribution and dividend payments both equate to a $2.90-per-unit and share annual payout, respectively, yielding 12% for LINN Energy unitholders based on the closing price on Aug. 30, and yielding 10.5% for LinnCo shareholders.

Editor's note: A chart that included Linn Energy's quarterly and monthly payouts has been removed from this article.

Top Oil Companies To Buy Right Now: Falcon Oil & Gas Ltd (FO)

Falcon Oil & Gas Ltd. (Falcon) is an energy company engaged in the business of acquiring, exploring and developing petroleum and natural gas properties. The Company focuses on the acquisition, exploration and development of conventional and unconventional petroleum and natural gas projects in Central Europe (specifically Hungary), Australia and South Africa. Falcon holds 100% interest in 245,775 acres in a production license in the Mako Trough, southern Pannonian Basin in Hungary. Effective July 18, 2013, Falcon Oil & Gas Ltd raised its interest to 96.9% from 72.68%, by acquiring a further 24.22% interest in Falcon Oil & Gas Australia Ltd, from Sweetpea Petroleum Corp Pty Ltd, a unit of PetroHunter Energy Corp. Effective September 19, 2013, Falcon Oil & Gas Ltd acquired the remaining 3.1% stake, which it did not already own, in Falcon Oil & Gas Australia Ltd, a oil and gas exploration and production company.

Top Oil Companies To Buy Right Now: Vecta Energy Corp (VER)

Vecta Energy Corporation is engaged in the exploration for, and the acquisition, development and production of oil, natural gas and natural gas liquids. The Company has non-operated interests in three areas: the foothills of Alberta, northeast BC and the Brewster area in central Alberta. The Company has interest in the Brewster area of west central Alberta (in townships 42, 43 and 44; range 12-13, W5). These lands are prospective in the Belly River formation at depths of 1,500 to 2,000 meters, as well as deeper zones including Nordegg, Rock Creek, Ellerslie, Ostracod, Falher and Notikewin. A total of six wells have been drilled on Company acreage. The 102/01-26-043-13 W5 well is producing 350 to 400 thousand cubic feet of natural gas with liquids. The 15-11-043-13 W5 well is producing of 350 to 400 thousand cubic feet of natural gas with liquids.

5 Best Dividend Stocks To Own For 2014: 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 Paul Ausick]

  Big Earnings Movers: Google Inc. (NASDAQ: GOOG) is up 13.8% at $1,011.65 after hammering estimates. Advanced Micro Devices Inc. (NYSE: AMD) is down 13.7% at $3.53. General Electric Co. (NYSE: GE) is up 3.6% at $25.57 after beating estimates. Morgan Stanley (NYSE: MS) is up 2.6% at $29.68. Schlumberger Ltd. (NYSE: SLB) is up 2.8% at $93.95 on solid earnings. All these stocks, except AMD, posted new 52-week highs today; Google posted its all-time high.

• [By Lee Jackson]

  Schlumberger Ltd. (NYSE: SLB) is the other top services name to own for 2014. The company looks to grow its share of E&P spending in 2014 and expects its margins to run higher than in the past. The Merrill Lynch analysts are negative on small and mid cap North American focused service companies. Investors are paid a 1.4% dividend. The Merrill Lynch price objective for the stock is $111, and the consensus target is set at $110.�Shares�closed Monday at $87.32.

• [By Dan Caplinger]

  One potential thing for Core Labs shareholders to watch out for is the prospect for a takeover bid. With a market cap of $6 billion, Core Labs would be a substantial acquisition for most industry players. But both Schlumberger (NYSE: SLB  ) and Halliburton (NYSE: HAL  ) are large enough to at least consider adding Core Labs to their respective oil-services portfolios, and both companies have fairly healthy balance sheets that could arguably withstand taking on more debt for a buyout.

• [By Matt DiLallo]

  Investors may wonder if peers like�Halliburton� (NYSE: HAL  ) �and�Schlumberger� (NYSE: SLB  ) �were pressured this quarter as well. Both companies have waded through the sluggish North American market by relying on growth overseas. If that trend continues, it should continue to mute some of the weakness Nabors experienced.

Top Oil Companies To Buy Right Now: EV Energy Partners LP (EVEP)

EV Energy Partners, L.P. (the Partnership) is engaged in the acquisition, development and production of oil and natural gas properties. As of December 31, 2011, the Company's properties were located in the Barnett Shale, the Appalachian Basin (which includes the Utica Shale), the Mid Continent areas in Oklahoma, Texas, Arkansas, Kansas and Louisiana, the San Juan Basin, the Monroe Field in Northern Louisiana, the Permian Basin, Central and East Texas (which includes the Austin Chalk area), and Michigan. On November 1, 2011, the Company acquired oil and natural gas properties in the Mid Continent area. On December 1, 2011, the Company along with certain institutional partnerships managed by EnerVest, acquired oil and natural gas properties in the Barnett Shale. It acquired a 31.02% proportional interest in these properties. On December 20, 2011, the Company, along with certain institutional partnerships managed by EnerVest, acquired additional oil and natural gas properties in the Barnett Shale. It acquired a 31.63% proportional interest in these properties. On February 7, 2012, the Company along with certain institutional partnerships managed by EnerVest, had a second closing on the oil and natural gas properties, and acquired a 31.63% proportional interest in these properties.

Barnett Shale

The Barnett Shale properties are located in Denton, Parker, Tarrant and Wise counties in Northern Texas. Its portion of the estimated net proved reserves as of December 31, 2011, was 647.4 one billion cubic feet equivalent (Bcfe), 72% of which is natural gas. During 2011, the Company drilled 35 wells. EnerVest operates wells representing 100% of its estimated net proved reserves in this area, and the Company owns an average 29% working interest in 976 gross productive wells.

Appalachian Basin

The Company�� activities are concentrated in the Ohio and West Virginia areas of the Appalachian Basin. Its Ohio area properties are producing from the Knox and Clinton f! ormations and other Devonian age sands in 41 counties in Eastern Ohio and 11 counties in Western Pennsylvania. Its West Virginia area properties are producing from the Balltown, Benson and Big Injun formations in 23 counties in North Central West Virginia. Its estimated net proved reserves as of December 31, 2011, were 126.4 Bcfe, 76% of which is natural gas. During 2011, it drilled 33 grosswells, 26 of which were completed. EnerVest operates wells representing 92% of its estimated net proved reserves in this area, and it owns an average 41% working interest in 8,670 gross productive wells.

Mid-Continent Area

The properties are located in 47 counties in Oklahoma, 17 counties in Texas, four parishes in North Louisiana, one county in Kansas and six counties in Arkansas. The Company�� estimated net proved reserves as of December 31, 2011, were 81.2 Bcfe, 63% of which is natural gas. During 2011, it drilled 82 wells, all of which were completed. EnerVest operates wells representing 33% of its estimated net proved reserves in this area, and it owns an average 12% working interest in 1,864 gross productive wells.

San Juan Basin

The properties are located in Rio Arriba County, New Mexico and La Plata County in Colorado. The Company�� estimated net proved reserves as of December 31, 2011, 68.6 Bcfe, 59% of which is natural gas. During 2011, it drilled two wells, one of which were completed. EnerVest operates wells representing 94% of its estimated net proved reserves in this area, and it owns an average 71% working interest in 227 gross productive wells.

Monroe Field

The properties are located in two parishes in Northeast Louisiana. The Company�� estimated net proved reserves as of December 31, 2011, were 60.9 Bcfe, 100% of which is natural gas. During 2011, it drilled one well, which was completed. EnerVest operates wells representing 100% of its estimated net proved reserves in this area, and it owns an average 100% working i! nterest i! n 3,930 gross productive wells.

Permian Basin

The properties are located in the Yates, Seven Rivers, Queen, Morrow, Clear Fork and Wichita Albany formations in four counties in New Mexico and Texas. The Company�� estimated net proved reserves as of December 31, 2011, were 54.1Bcfe, 37% of which is natural gas. During 2011, it did not drill any wells. EnerVest operates wells representing 99% of its estimated net proved reserves in this area, and it owns an average 93% working interest in 160 gross productive wells.

Central and East Texas

The properties produce primarily from the Austin Chalk formation and are located in 30 counties in Central and East Texas. Its portion of the estimated net proved reserves as of December 31, 2011 was 60.9 Bcfe, 46% of which is natural gas. During 2011, the Company drilled 16 gross wells, 15 of which were completed. EnerVest operates wells representing 93% of its estimated net proved reserves in this area, and it owns an average 12% working interest in 1,829 gross productive wells.

Michigan

The properties are located in the Antrim Shale reservoir in Otsego and Montmorency counties in northern Michigan. The Company�� estimated net proved reserves as of December 31, 2011, were 44.9 Bcfe, 100% of which is natural gas. During 2011, it did not drill any wells. EnerVest operates wells representing 99% of its estimated net proved reserves in this area, and it has an average 84% working interest in 370 gross productive wells.

Advisors' Opinion:

• [By Arjun Sreekumar]

  Analysts expect some $2 billion worth of new projects to be revealed, in addition to the $2 billion of projects that have already been announced.�Major projects that have either been proposed or are under way include a natural gas liquids processing plant�by affiliates of NiSource and Hilcorp Energy; a gathering and processing plant by M3 Midstream LLC, Access Midstream Partners, and EV Energy Partners (NASDAQ: EVEP  ) ; and a proposed pipeline from Ohio to Detroit and Canada, to be built by DTE Energy, Spectra Energy (NYSE: SE  ) and Enbridge.

• [By Matt DiLallo]

  The big problem is that there aren't a lot of buyers, which is the issue that�EV Energy Partners� (NASDAQ: EVEP  ) has run into with its own Utica sale. With major players like Chesapeake and Devon exiting, and foreign buyers like Sinopec already securing a foothold in the play, there are few buyers left that are willing to risk capital on a play that's no longer viewed as a sure thing. This has left EV Energy stuck with the 100,000 net acres it has been marketing since last year. The company has chosen to change its marketing strategy to sell the acreage in smaller packages to appeal to more buyers.�

• [By Robert Rapier]

  3. EV Energy Partners

  EV Energy Partners (Nasdaq: EVEP) was the worst-performing oil and gas MLP. The partnership was plagued by cash flow problems, and as a result units declined by 40 percent for the year. At the most recent closing price, units yield 9.1 percent, but EVEP will likely need more cash flow in 2014 to support that yield.
  

  4. CVR Partners

Top Oil Companies To Buy Right Now: Statoil ASA (STO)

Statoil ASA (Statoil), incorporated on September 18, 1972, is an integrated energy company primarily engaged in oil and gas exploration and production activities. As of December 31, 2011, the Company had business operations in 41 countries and territories. Effective from January 1, 2011, the Company�� segments were Development and Production Norway; Development and Production International; Marketing, Processing and Renewable Energy; Fuel & Retail, Other. As of 31 December 2011, the Company had proved reserves of 2,276 million barrels (mmbbl) and 3,150 billion cubic meters (bcm) (equivalent to 17,681 trillion cubic feet (tcf)) of natural gas, corresponding to aggregate proved reserves of 5,426 mmboe. In December 2011, the Company acquired Brigham Exploration Company. On April 14, 2011, Statoil's formation of a joint venture and sale of 40% of the Peregrino field off the coast of Brazil to the Sinochem Group was closed. With effect from January 2011, Statoil formed a joint venture with PTTEP of Thailand in its oil sands business and, as part of that transaction, sold PTTEP a 40% interest in the leases in Alberta, Canada. Statoil retains 60% ownership and operatorship of the oil sands project. In June 2012, the Company divested its 54% interest in Statoil Fuel & Retail ASA to Alimentation Couche-Tard.

Development and Production Norway

Development and Production Norway (DPN) consists of the Company�� field development and operational activities on the Norwegian continental shelf (NCS). Development and Production Norway is the operator of 44 developed fields on the NCS. Statoil's equity and entitlement production on the NCS was 1.316 mmboe per day in 2011, which was about 71% of Statoil's total production. Acting as operator, DPN is responsible for approximately 72% of all oil and gas production on the NCS. In 2011, its average daily production of oil and natural gas liquids (NGL) on the NCS was 693 mboe, while its average daily gas production on the NCS was 99.1 mmcm (3.5 b! illion cubic feet (bcf)). The Company has an ownership interests in exploration acreage throughout the licensed parts of the NCS, both within and outside its production areas. It participates in 227 licenses on the NCS and is the operator for 171 of them. As of 31 December 2011, Statoil had a total of 1,369 mmbbl of proved oil reserves and 444 bcm (15.7 tcf) of proved natural gas reserves on the NCS. Total entitlement liquids and gas production in 2011 amounted to 1,316 mmboe per day.

Statoil's NCS portfolio consists of licenses in the North Sea, the Norwegian Sea and the Barents Sea. It has organized its production operations into four business clusters: Operations South, Operations North Sea West, Operations North Sea East and Operations North. The Operations South and Operations North Sea West and East clusters cover its licenses in the North Sea. Operations North covers the Company�� licenses in the Norwegian Sea and in the Barents Sea, while partner-operated fields cover the entire NCS and are included internally in the Operations South business cluster. During 2011, it two Statoil-operated oil discoveries: the Aldous discovery (PL265) in the North Sea and the Skrugard discovery (PL532) in the Barents Sea. The Aldous Major South discovery in PL265 on the Utsira Height in the Sleipner area is situated 140 kilometers west of Stavanger and 35 kilometers south of the Grane field. The Skrugard discovery is located about 250 kilometers off the coast from the Melkoya LNG plant in Hammerfest.

As of December 31, 2011, the Company�� fields under development included the Gudrun, Valemon, Visund South, Hyme, Stjerne, Vigdis North-East, Skuld, Vilje South, Skarv, and Marulk. In 2011, the Company�� total entitlement oil and NGL production in Norway was 252 mmbbl, and gas production was 36.2 bcm (1,287 bcf). The main producing fields in the Operations South area are Statfjord, Snorre, Tordis, Vigdis, Sleipner and partner-operated fields. Operations North Sea East is a gas area tha! t also co! ntains quantities of oil. The area includes the Troll, Fram, Vega, Oseberg and Tune fields. The Company�� producing fields in the Operations North area are Asgard, Mikkel, Yttergryta, Heidrun, Kristin, Tyrihans, Norne, Urd, Alve, Njord, Snohvit and Morvin.

Development and Production International

Development and Production International (DPI) is responsible for the development and production of oil and gas outside the Norwegian continental shelf (NCS). In 2011, the segment was engaged in production in 12 countries: Canada, the United States, Brazil, Venezuela, Angola, Nigeria, Iran, Algeria, Libya, Azerbaijan, Russia and the United Kingdom. In 2011, DPI produced 28.9% of Statoil's total equity production of oil and gas. Statoil has exploration licenses in North America (Gulf of Mexico, Canada and Alaska), South America and sub-Saharan Africa (Brazil, Cuba, Suriname, Venezuela, Angola, Mozambique and Tanzania), Middle East and North Africa (Libya and Iran) and Europe and Asia (the Faeroes, Greenland, the United Kingdom, Azerbaijan and Indonesia). The main sanctioned development projects in which DPI is involved are in the United States, Angola and Canada. The Brigham Exploration Company acquisition added production of approximately 21 mboe per day (as of December) to Statoil's production and gave access to 1,500 square kilometers (375,000 acres) in the Bakken and Three Forks formations in the Williston Basin.

The Company has exploration licenses in North America (Gulf of Mexico, Canada and Alaska), South America and sub-Saharan Africa (Brazil, Cuba, Suriname, Venezuela, Angola, Mozambique and Tanzania), Middle East and North Africa (Libya and Iran), and Europe and Asia (the Faroes, Greenland, the United Kingdom, Azerbaijan and Indonesia). It completed 16 wells in 2011. Five were announced as discoveries: the Mukuvo and Lira discoveries in Angola, the Gavea and Peregrino South discovery in Brazil and the Logan discovery in Gulf of Mexico (GoM). Statoil acquired in! terests i! n six new licenses in Indonesia in 2011. Statoil has activities in the United States, with approximately 300 exploration leases in the GoM and 66 in Alaska. It is also an operator and partner in exploration licenses off the coast of Newfoundland in Canada. Statoil is operator and partner in exploration licenses off the coast of Newfoundland (11,138 square kilometers). It has exploration licenses in Brazil, Cuba, Suriname, Venezuela, Angola, Mozambique and Tanzania. The Company has licenses in Libya, Iran, Faroes, Greenland, the United Kingdom, Azerbaijan and Indonesia. In 2011, Statoil's petroleum production outside Norway amounted to an average of 334 mboe per day of entitlement production and 534 mboe per day of equity production.

The Company has activities in the United States Gulf of Mexico, the Appalachian region, south-west Texas, the Williston Basin, off the East Coast of Canada and in the oil sands of Alberta, Canada. It also has a representative office in Mexico City. Offshore, the Company has production interests in Hibernia and Terra Nova, and interests in two development projects. Its development and production activities in South America and sub-Saharan Africa comprise the Peregrino operatorship in Brazil, the Petrocedeno project in Venezuela, the Agbami offshore field in Nigeria and four Angolan offshore blocks. Statoil's development and production in the Middle East and North Africa in 2011, primarily encompassed Algeria, Libya, Egypt, Iran and Iraq. The Company�� Development and Production in Europe and Asia primarily comprises Azerbaijan, Russia, United Kingdom and Ireland.

Marketing, Processing and Renewable Energy

Marketing, Processing and Renewable Energy (MPR) is responsible for the transportation, processing, manufacturing, marketing and trading of crude oil, natural gas, liquids and refined products, and for developing business opportunities in renewables. It runs two refineries, two gas processing plants, one methanol plant and three crude! oil term! inals. MPR is also responsible for marketing gas supplies originating from the Norwegian state's direct financial interest (SDFI). In total, it is responsible for marketing approximately 80% of all Norwegian gas exports. In 2011, Statoil sold 36.1 bcm (1.3 tcf) of natural gas from the Norwegian continental shelf (NCS) on its own behalf, in addition to approximately 33.5 bcm (1.2 tcf) of NCS gas on behalf of the Norwegian state. Statoil's total European gas sales, including third-party gas, amounted to 79.8 bcm (2.9 tcf) in 2011, of which 39.5 bcm (1.4 tcf) was gas sold on behalf of the Norwegian state. The Natural Gas business cluster is responsible for Statoil's marketing and trading of natural gas worldwide, for power and emissions trading and for overall gas supply planning. In 2011, the Company sold 36.1 bcm (1.3 tcf) of natural gas from the NCS on its own behalf, in addition to approximately 33.5 bcm (1.2 tcf) of NCS gas on behalf of the Norwegian state. Statoil's total European gas sales, including third-party gas, amounted to 79.8 bcm (2.9 tcf) in 2011, of which 39.5 bcm (1.4 tcf) was gas sold on behalf of the Norwegian state. In addition, it sold 5.5 bcm (0.2 tcf) of gas originating from its international positions, mainly in Azerbaijan and the United States, of which 2.7 bcm (0.1 tcf) was entitlement gas. As technical service provider (TSP), Statoil is responsible for the operation, maintenance and further development of the Karsto gas processing plant on behalf of the operator Gassco.

Statoil is the seller of crude oil, operating from sales offices in Stavanger, Oslo, London, Singapore, Stamford and Calgary and selling and trading crude oil, condensate, NGL and refined products. Statoil holds the lease for the South Riding Point crude oil terminal in the Bahamas, which includes, oil storage as well as loading and unloading facilities. It also operates the Mongstad terminal and has shared ownership with Petoro. The Company is a majority owner (79%) and operator of the Mongstad ref! inery in ! Norway, which has a crude oil and condensate distillation capacity of 220,000 barrels per day. It is the sole owner and operator of the Kalundborg refinery in Denmark, which has a crude oil and condensate distillation capacity of 118,000 barrels per day. In addition, it has rights to 10% of production capacity at the Shell-operated refinery in Pernis in the Netherlands, which has a crude oil distillation capacity of 400,000 barrels per day. The Company�� methanol operations consist of an 81.7% interest in the gas-based methanol plant at Tjeldbergodden, Norway, which has a design capacity of 0.95 million tons per year. It also operates the Oseberg Transportation System (36.2% interest), including the Sture crude oil terminal.

Technology, Projects and Drilling

Technology, Projects and Drilling (TPD) is responsible, as a global service provider to Statoil, for delivering projects and wells and for providing support through global expertise, standards and procurement. TPD is also responsible developing and implementing new technological solutions. Statoil's research and development portfolio is organized in seven programs covering the upstream building blocks. The research and development organization operates and develops laboratories and test facilities and has an academia program that addresses cooperation with universities and research institutes.

Global Strategy and Business Development

Global Strategy and Business Development (GSB) was established in 2011, with its main office in London. GSB sets the direction for Statoil and identifies, develops and delivers opportunities for global growth.

Advisors' Opinion:

• [By Arjun Sreekumar]

  The field, located about 250 miles southwest of New Orleans, is one of the biggest oil discoveries in the ultra-deepwater frontier of the Gulf of Mexico and is estimated to contain nearly 6 billion barrels of oil resource in place. Exxon and Statoil (NYSE: STO  ) , the Norwegian oil and gas giant, each hold a 50% interest in the field.

• [By Sara Murphy]

  HSBC�recently conducted an analysis of European oil majors' at-risk carbon reserves. The study found Norway's�Statoil� (NYSE: STO  ) to be the worst affected, with approximately 17% of its market capitalization at risk. HSBC also calculated that 6% of�BP's (NYSE: BP  ) reserves are at risk, along with 5% of�Total's (NYSE: TOT  ) .

• [By Dan Caplinger]

  Now more than ever, a comfortable retirement depends on secure, stable investments. Unfortunately, the right stocks for retirement won't just fall into your lap. As part of an ongoing series, I'm looking today at 10 measures to show whether Statoil (NYSE: STO  ) makes a great retirement-oriented stock.

Top Oil Companies To Buy Right Now: 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 Luke Jacobi]

  Transocean (NYSE: RIG) was also up, gaining 5.97 percent to $49.35 after the news that the company would be added to the S&P 500 hit the wires.

• [By Selena Maranjian]

  Icahn Associates increased its stake in Transocean (NYSE: RIG  ) , with Icahn agitating for a big dividend payout. Shareholders recently voted out the chairman and voted in an Icahn-backed nominee, but they supported the company's proposed $2.24 dividend, instead of Icahn's suggested $4.00. It has posted losses in recent years, in part due to rig downtime, but its last quarterly report featured profits and higher-than-expected revenue. It has a solid backlog, too.

• [By Dan Caplinger]

  Seadrill has done an excellent job of taking advantage of a huge boom in deepwater drilling activity. With the number of new finds below 4,000 feet of water in 2012 crushing the old record by 40%, there's been more than enough business for the entire industry. Rival Transocean (NYSE: RIG  ) has managed to increase its backlog of business to $28.5 billion as of April, while Seadrill's latest total stood at $21 billion. That backlog has given Seadrill the flexibility to embark on a massive building project, seeking to extend its reach with nearly two dozen rigs under construction, including seven ultra-deepwater drillships. With dayrates climbing above the $600,000 mark, those new ships should help expand profits once they come on line for Seadrill.

Top Oil Companies To Buy Right Now: Enbridge Inc(ENB)

Enbridge Inc. engages in the transportation and distribution of crude oil and natural gas primarily in Canada and the United States. Its Liquids Pipelines segment operates common carrier and contract crude oil, natural gas liquids (NGLs), and refined products pipelines and terminals. The company?s Gas Distribution segment distributes natural gas to residential, commercial, and industrial customers primarily in central and eastern Ontario, northern New York State, Quebec, and New Brunswick. Enbridge?s Gas Pipelines, Processing and Energy Services segment invests in natural gas pipelines, processing and green energy projects, and commodity marketing businesses, as well as performs commodity storage, transport, and supply management services. Its Sponsored Investments segment transports crude oil and other liquid hydrocarbons through common carrier and feeder pipelines, as well as transports, gathers, processes, and markets natural gas and NGLs; operates a crude oil and liqui ds pipeline and gathering system; and owns a 50% interest in the Canadian portion of Alliance Pipeline and partial interests in various green energy investments. The company was formerly known as IPL Energy Inc. and changed its name to Enbridge Inc. in October 1998. Enbridge Inc. was founded in 1949 and is headquartered in Calgary, Canada.

Advisors' Opinion:

• [By Tyler Crowe]

  There are several reasons shale drilling has taken off in the United States. One clear reason everyone can agree on is that the U.S. has one of the most complete energy infrastructures out there. While much of that infrastructure was built to deliver oil and gas from the Gulf of Mexico to destinations across the U.S., we we've taken that existing infrastructure and flipped it on its head. Pipeline reversals, such as the one on Enbridge's (NYSE: ENB  ) and Enterprise Products Partners' (NYSE: EPD  ) Seaway pipeline, provide an essential route to deliver resources from these emerging shale plays to the Gulf to be refined.�

• [By Aimee Duffy]

  Additionally, you can use this page to research spills not related to pipelines. For example, you can research spills by train, barge, truck, or plane. When we use this particular form to search for information on Enbridge (NYSE: ENB  ) , we do not find anything related to the 2010 oil spill in Kalamazoo, but we do find four other incidents dating back to 2005, including one spill from last year that cost more than $473,000 in damages. Again, any particular finding may not influence your investment thesis one bit, but when patterns emerge it matters.

• [By Callum Turcan]

  Bridging the way
  Enbridge (NYSE: ENB  ) currently carries 2.2 million barrels of crude oil and liquids�each day through its vast 15,372 thousand mile pipeline system.Enbridge has recently undergone�a $6.2 billion program to grow shipping capacity in Western Canada and the Bakken by 400,000 bpd. Western Canada is home to the booming oil sands play, so Enbridge is trying to capitalize on two high-growth markets.

• [By Aimee Duffy]

  The Seaway pipeline, the joint venture between�Enterprise Products Partners (NYSE: EPD  ) and Enbridge (NYSE: ENB  ) , has taken on a life of its own, as speculators are trying to gain access to the last bit of capacity to sell the space on a secondary market. In this video, Fool.com contributor Aimee Duffy explains what is going on and why this pipeline matters so much to oil producers and investors alike.

Top Oil Companies To Buy Right Now: Pengrowth Energy Corp (PGH)

Pengrowth Energy Corporation (Pengrowth) is engaged in the development, production and acquisition of, and the exploration for, oil and natural gas reserves in the provinces of Alberta, British Columbia, Saskatchewan, Ontario and Nova Scotia. The Company�� producing properties include Lindbergh, Swan Hills Area, Greater Olds/Garrington Area and Southeast Saskatchewan. In February 2012, the Company commenced the injection of steam at its Lindbergh pilot project. On May 31, 2012, the Company acquired NAL Energy Corporation. In November 2012, the Company acquired additional Lochend Cardium assets with production capability of approximately 650 barrels of oil equivalent, weighted 95% to light oil. In March 2013, the Company completed the divestiture of its non-core Weyburn asset. Advisors' Opinion:

• [By Roberto Pedone]

  Pengrowth Energy (PGH) is engaged in the development, production and acquisition of, as well as the exploration for, oil and natural gas reserves in the provinces of Alberta, British Columbia, Saskatchewan and Nova Scotia. This stock closed up 1.6% to $5.69 in Thursday's trading session.

  Thursday's Range: $5.60-$5.75
  
  52-Week Range: $3.82-$7.49
  
  Thursday's Volume: 1.06 million
  
  Three-Month Average Volume: 1.62 million

  From a technical perspective, PGH bounced modestly higher here right above some near-term support at $5.57 with decent upside volume. This stock recently pulled back after a solid uptrend, from $6.06 to that $5.57 low. Shares of PGH now look ready to resume its uptrend and potentially trigger a near-term breakout trade. That trade will hit if PGH manages to take out some near-term overhead resistance levels at $5.88 to $6.06 with high volume.

  Traders should now look for long-biased trades in PGH as long as it's trending above support at $5.57 to more support at $5.40 and then once it sustains a move or close above those breakout levels with volume that hits near or above 1.62 million shares. If that breakout triggers soon, then PGH will set up to re-test or possibly take out its next major overhead resistance levels at 7 to $7.50.

• [By WWW.GURUFOCUS.COM]

  Canadian Trusts- Baytex Energy Trust (BTE) | Yield: 6.1%
  - Enerplus Resources Fund (ERF) | Yield: 5.6%
  - Pengrowth Energy Trust (PGH) | Yield: 7.1%

• [By Dan Caplinger]

  Pengrowth Energy (NYSE: PGH  ) will release its quarterly report on Thursday, and with shares having climbed recently, investors seem to be expecting good things from the company. Yet Pengrowth earnings expectations don't appear to be behind the jump in the stock lately, with some one-time events drawing the bulk of investor attention instead.

• [By Selena Maranjian]

  Finally, Graham Capital's biggest closed positions included Hess�and calls on the SPDR S&P 500 ETF. Other closed positions of interest include Halcon Resources (NYSE: HK  ) and Pengrowth Energy (NYSE: PGH  ) . Oil and gas company Halcon, operating in the promising Bakken region, as well as Texas' productive Eagle Ford shale region, among others, posted 2012 net daily production 128% higher than year-earlier levels, and proven reserves up 417%. The stock was punished after a disappointing earnings result last month, despite surging revenue. Free cash flow has moved into the red, though.