The View From the Summit

The Investing Daily Summit

This week I will speak about energy investing at Investing Daily's annual Investing Summit in Alexandria, Virginia. Last year's presentation in Scottsdale, Arizona was my first since joining Investing Daily, and I laid out my personal philosophies for creating long-term wealth. They are:

Spend less than I earn and invest the rest

Minimize personal debt

Invest in businesses I understand

Understand the risk level

Avoid investments that are dependent on government subsidies and/or mandates

Identify long-term trends and invest accordingly

Have an exit strategy

I will cover a number of long-term trends in the energy business. One is that oil will continue to be hard to replace, and even though new supplies are coming online, voracious demand from developing countries and the higher costs of developing unconventional reserves will keep prices high. Another is that coal and nuclear power both face a lot of headwinds, and investors have to be extremely picky if they choose to invest in these sectors. On the other hand, solar power's prospects look bright, and solar will in the long run become perhaps our most important source of energy.

Natural Gas Powers Ahead

But the story of the year for me is the developing picture with natural gas. In my presentation last year, I had a slide that simply said "Natural gas is cheap." I went on to explain why I felt like natural gas was undervalued, and I made the case for investing in natural gas producers on the basis of several long-term bullish drivers.

What has happened since then?

Natural gas prices are up about 20 percent since I wrote that, and natural gas producers — undervalued for so long in my opinion — have begun to surge. Over the course of the year we added a number of natural gas producers to the various Energy Strategist portfolios, and by my count now! hold 10 of the country's top 20 as shown in the table below:

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Top 20 natural gas producers in 2013. Source: Natural Gas Supply Association

For example, we added Chesapeake Energy (NYSE: CHK) — the country's second-largest natural gas producer — to our Aggressive Portfolio on May 13 and have gained 42 percent since. (Check the latest Energy Strategist for our current advice on Chesapeake and the other natural gas producers.)

Devon Finally Bounces

But Chesapeake isn't an exception to the rule. All of our natural gas producers in the portfolios — 100 percent — are sitting on gains. I personally bought the nation's fourth-largest natural gas producer — Devon Energy (NYSE: DVN) — last September because I felt the market was discounting both the potential for higher gas prices and Devon's moves toward even more lucrative liquids production. Devon's shares were pretty flat from the time I bought them until early February. I was in no hurry, because remember, I am targeting long-term trends and positioning accordingly.

But the very cold winter meant I didn't have to wait for investors to recognize the long-term bullish factors that I believe will support a natural gas price rise. The short-term factors lined up as well, as natural gas inventories depleted at a record pace this winter. Since Feb. 1, Devon shares have surged by more than 20 percent, and are regularly breaking through new 52-week highs:

Devon Energy’s share price, Feb. 3 through April 25

A similar picture ha! s emerged! for other natural gas stocks. They have all begun to move higher over the past few months. Since most natural gas producers also have substantial liquids production, oil prices that are stubbornly clinging to $100 a barrel have helped.

Cabot's Production Surges

As I have been saying for months, most of these producers will report better year-over-year results versus last year. Last week Cabot Oil & Gas (NYSE: COG) — with most of its focus in Pennsylvania's gas-rich Marcellus Shale and the Eagle Ford crude oil shale of Texas — reported first-quarter results. Some highlights for the quarter were:

Natural gas and liquids production of 119.9 billion cubic feet equivalent (Bcfe), an increase of 34 percent over last year’s comparable quarter

Discretionary cash flow of $319.5 million, an increase of 36 percent over last year’s comparable quarter

Net income excluding selected items of $109.7 million, an increase of 102 percent over last year’s comparable quarter

Total unit costs of $2.66 per thousand cubic feet equivalent (Mcfe), a 19 percent improvement over last year’s comparable quarter

Despite what was shaping up to be a good quarter, shares had recently sold off after Cabot announced production would be flat during the first half of the year as a result of a transition to the more efficient pad drilling. Several brokerage houses even downgraded the company on the basis of this short-term outlook, but shares have surged since last week's earnings report, and are now up 17 percent in the last 10 trading days.

Conclusions

Based on my forecast for natural gas prices this year, I expect this to be a great year for the shares of most major natural gas producers. Some have already made strong advances, but many are still undervalued. For the long-term investor especially, it's certainly not too late to buy in.

(Follow Robert Rapier on Twitter, LinkedIn, or Facebook.)

What a Dizzying Day in the Markets

Top Industrial Disributor Companies To Own In Right Now

NEW YORK (TheStreet) -- What a volatile trading day it was on Monday -- all the indexes roared out of the box, making huge gains, only to see those gains all wiped out before regaining their footing at the close.

The DJIA was up 138 points in early trading at 16500.37 before losing all those gains and hitting an intraday low of 16312. The DJIA closed at 16448.74, up 87.28 points. The S&P 500 closed at 1869.43, up 6.03 points.

The Nasdaq and Russell 2000 indexes, both in Trend Bearish territory as I have mentioned on many occasions, closed in the red today. The Nasdaq closed down 1.16 points at 4074.40. This was on the heels of Apple (AAPL) soaring 22.34 points to close at 594.28. One can only imagine what the Nasdaq would have looked like without the huge AAPL gains. The Russell 2000 closed down 5.97 points to finish at 1117.06.

Once again, we have two different markets. The DJIA and the S&P 500 vs. the Nasdaq and the Russell 2000. This is not a healthy stock market environment. The volume on Monday, which is always a concern of mine, finally showed some nice upward movement on a green day. The S&P 500 Trust Series ETF (SPY) traded well over 110 million shares on Monday. This was the first time since April 15 of this year. I would like to make a comment about my algorithm process that I utilize at www.strategicstocktrades.com. When I observe volume in relation to price movement, I like to look at the weekly trend, which is a three-month or longer time frame. The volume indicator, which I term the SST Volume Trend, has been showing a bearish divergence with all the index price movements since the week ended Dec. 20, 2013. As the price of the indexes has continued to rise, the volume has been steadily falling.

There is not a lot of buying force behind this upward trend in index prices. This is known as a negative divergence. It is just a matter of time before the market indexes will start to roll over. As a matter of fact, we may be seeing that take place at the present time. That is why the Nasdaq and the Russell 2000 indexes have been diverging from the DJIA and the S&P 500. What this all means from a trading standpoint is be cautious. The perceived strength behind this market is not as strong as it appears. This market has no memory from day to day, let alone week to week. Apple, the big winner again today, is now well into overbought territory, according to my algorithm process. It will be approaching the extreme overbought signal Tuesday on green. Watch for AAPL profit-taking to kick in within the next day or two. Chasing AAPL at these levels is not a good idea. I did purchase two new positions today. I started a long in Lululemon Athletics, (LULU), a large-cap stock with a market cap of over $4 billion. I also started a small-cap long position in Oculus Innovative Sciences, (OCLS). Both are for short-term trades based on my extreme oversold indicator according to my algorithm process. At the time of publication, the author was long LULU and Oculus Innovative Sciences. This article represents the opinion of a contributor and not necessarily that of TheStreet or its editorial staff.

Stock quotes in this article: AAPL, LULU, OCLS 

Should BlackBerry Be Considered at These Prices?

With shares of BlackBerry (NASDAQ:BBRY) trading around $9, is BBRY an OUTPERFORM, WAIT AND SEE or STAY AWAY? Let's analyze the stock with the relevant sections of our CHEAT SHEET investing framework:

T = Trends for a Stock’s Movement

BlackBerry is a designer, manufacturer, and marketer of wireless solutions for the worldwide mobile communications market. Through the development of integrated hardware, software, and services, it provides platforms and solutions for seamless access to information, including email, voice, instant messaging, SMS, Internet, and intranet-based applications and browsing. Its products and services include the BlackBerry wireless solution, the Research In Motion Wireless Handheld product line, the BlackBerry PlayBook tablet, software development tools, and other software and hardware.

BlackBerry’s portfolio of products, services, and embedded technologies are used by thousands of organizations and millions of consumers around the world. Several economies around the world are growing and adopting these technologies into their daily lives. The company has also recently rebranded, which may offer a boost to their bottom line. However, a recent negative earnings report has the stock hurting.

T = Technicals on the Stock Chart are Weak

BlackBerry stock has not done very well over the last few years as it struggles against key competition. Recently, the stock has broken-down after a negative earnings announcement. Analyzing the price trend and its strength can be done using key simple moving averages. What are the key moving averages? The 50-day (pink), 100-day (blue), and 200-day (yellow) simple moving averages. As seen in the daily price chart below, BlackBerry is trading below its key averages which signal neutral to bearish price action in the near-term.

(Source: Thinkorswim)

Taking a look at the implied volatility (red) and implied volatility skew levels of BlackBerry options may help determine if investors are bullish, neutral, or bearish.

	Implied Volatility (IV)	30-Day IV Percentile	90-Day IV Percentile
BlackBerry Options	5 Best Communications Equipment Stocks To Watch For 2015 65.13%	26%	23%

What does this mean? This means that investors or traders are buying a minimal amount of call and put options contracts, as compared to the last 30 and 90 trading days.

	Put IV Skew	Call IV Skew
July Options	Steep	Average
August Options	Steep	Average

As of today, there is an average demand from call buyers or sellers and high demand by put buyers or low demand by put sellers, all neutral to bearish over the next two months. To summarize, investors are buying a minimal amount of call and put option contracts and are leaning neutral to bearish over the next two months.

On the next page, let’s take a look at the earnings and revenue growth rates and the conclusion.

E = Earnings Are Decreasing Quarter-Over-Quarter

Rising stock prices are often strongly correlated with rising earnings and revenue growth rates. Also, the last four quarterly earnings announcement reactions help gauge investor sentiment on BlackBerry’s stock. What do the last four quarterly earnings and revenue growth (Y-O-Y) figures for BlackBerry look like and more importantly, how did the markets like these numbers?

	2013 Q1	2012 Q4	2012 Q3	2012 Q2
Earnings Growth (Y-O-Y)	86.87%	-78.23%	-96.08%	-171.43%
Revenue Growth (Y-O-Y)	9.13%	-41.26%	-47.21%	-31.07%
Earnings Reaction	-25.20%	-0.89%	-22.73%	5.04%

BlackBerry has seen decreasing earnings and revenue figures over most of the last four quarters. From these numbers, the markets have been disappointed with BlackBerry’s recent earnings announcements.

P = Poor Relative Performance Versus Peers and Sector

How has BlackBerry stock done relative to its peers, Apple (NASDAQ:AAPL), Google (NASDAQ:GOOG), Nokia (NYSE:NOK), and sector?

	BlackBerry	Apple	Google	Nokia	Sector
Year-to-Date Return	-18.87%	-20.83%	25.31%	-1.27%	4.62%

BlackBerry has been a poor relative performer, year-to-date.

Conclusion

BlackBerry is attempting to change the wireless communications industry with its rebranded company and products. After a negative earnings announcement, the stock has broken down and seems to be heading lower. Over most of the last four quarters, earnings and revenue figures have declined which has really disappointed investors in the company. Relative to its peers and sector, BlackBerry has been a poor year-to-date performer. WAIT AND SEE what BlackBerry does in future quarters.

How Apple Will Benefit From the End of Smartphone Subsidies

Much of the attention surrounding the end of smartphone subsidies has been focused on the impact on wireless carriers. T-Mobile (NYSE: TMUS  ) is in the process of rolling out new plans, and there are rumors that Verizon (NYSE: VZ  ) will probably end subsidies soon as well; if so, AT&T (NYSE: T  ) will certainly be close behind. But how will smartphone makers such as Apple (NASDAQ: AAPL  ) be affected?

In the following interview with the Fool's Alison Southwick, Fool.com contributor Doug Ehrman discusses some of the potential impacts on Apple of the end of smartphone subsidies and why this might actually be good news for the iPhone maker.

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A shift in the way wireless carriers do business may impact the fact that Apple has a history of cranking out revolutionary products -- and then creatively destroying them with something better. Read about the future of Apple in the free report, "Apple Will Destroy Its Greatest Product." Can Apple really disrupt its own iPhones and iPads? Find out by clicking here.

Tesla: Elon Musk Gets Paid How Much?

Poor Elon Musk. After getting more than $78 million in options, the founder of Tesla Motors (TSLA) was paid just $69,989 in options and cash in 2013, according to a filing today.

REUTERS

Bloomberg explains:

Musk's large option award in 2012 was intended as compensation over a 10-year term, based on achieving specific goals, the company said in the filing. Those include the market capitalization reaching $43.2 billion within a decade; it's $25.8 billion now and was $3.9 billion at the end of 2012.

To get the full value, Tesla also must expand its lineup with the Model X sport-utility vehicle, a lower-priced sedan, and raise its electric vehicle production to 300,000 units annually with Musk still at the company.

Of course, he does own 23% of the shares in the $25.6 billion company. Tesla dropped 3.9% to $199.85 today.

Hot High Dividend Stocks For 2015

As earnings season reaches the halfway point, we're once again seeing stunningly large share buyback announcements.

Yet investors are scratching their heads. These buybacks are often seen in tandem with share prices hitting fresh multi-year lows. Gone are the days when companies would resort to buybacks only when their stock was deeply out of favor, far from its 52-week high.

Why are these companies "buying at highs"? In almost every instance, they appear to have little other use for their cash. They could go out and complete acquisitions that boost the top and bottom lines. Or they could seek to offer up very high dividends. Instead, they simply are managing their business with an eye toward maximizing cash flow, and using buybacks as a primary way to reward investors.

Here's a look at companies that have recently initiated or extended share buyback programs that could shrink the numbers of shares outstanding by more than 10%.

Hot High Dividend Stocks For 2015: Gol Linhas Aereas Inteligentes SA (GOL)

Gol Linhas Aereas Inteligentes S.A. (GoL) is a low-cost, low-fare airline in the world providing service on routes connecting all of Brazil�� cities and from Brazil to cities in South America and select touristic destinations in the Caribbean. As of March 31, 2010, GoL offered approximately 800 daily flights per day to 61 destinations connecting cities in Brazil, as well as destinations in Argentina, Bolivia, Curacao, Aruba, Chile, Colombia, Paraguay, Uruguay and Venezuela. GoL is a holding company, which owns directly or indirectly shares of five subsidiaries: VRG Linhas Aereas S.A. (VRG) and four offshore finance subsidiaries, Gol Finance Cayman and GAC Inc., which owns Sky Finance and Sky Finance II. VRG is the Company�� operating subsidiary, under which it conducts its business. Gol Finance, GAC Inc., Sky Finance and Sky Finance II are off-shore companies established for the purpose of facilitating cross-border general and aircraft financing transactions.

GoL�� passenger transportation services include ticketless travel; online sales, check-in, seat assignment and flight change and cancellation services; online flight status service; Web-enabled cell phone ticket sales and check-in; self check-in at kiosks at designated airports; designated female lavatories; friendly and efficient in-flight service; modern aircraft interiors; quick turnaround times at airport gates; free or discounted shuttle services between airports and drop-off zones on certain routes; buy on board services on certain flights; mobile check-in and boarding pass (100% paperless boarding), and iPhone application for check-in, electronic boarding pass and Smiles account management. On December 31, 2009, the Company had an operational fleet of 108 operational aircraft and a total fleet of 127. As of March 31, 2010, one of its Boeing 767 aircrafts was subleased to a charter company in the United States, one is under final formalization process for a wet lease to a Brazilian company for flights connecting Brazil to! Angola and three are under final stages of negotiation to be chartered to operate intercontinental flights. At December 31, 2009, GoL had a total of 127 aircraft, 94 of which were under operating leases and 33 were under finance leases.

The Company competes with TAM Linhas Aereas S.A.

Advisors' Opinion:

• [By Jake L'Ecuyer]

  Gol Linhas Aereas Inteligentes (NYSE: GOL) was down, falling 6.31 percent to $4.0850 after the company posted a loss in the third quarter.

  Commodities
  In commodity news, oil traded up 1.33 percent to $94.28, while gold traded up 0.28 percent to $1,274.70.

• [By Jon C. Ogg]

  Gol Linhas A茅reas Inteligentes S.A. (NYSE: GOL) is a Brazilian airline carrier, as well as a mail and cargo carrier. At $4.65, the 52-week trading range is $2.74 to $7.67.

• [By Jim Jubak]

  One place to look for it this week has been in the ADRs, the New York traded ADRs, American Depository Receipts of GOL. One of the two big Brazilian airlines is the only one that is not owned by somebody else. The symbol is (GOL). It went up like 9.5% on October 21; it went up about 4.5% on October 22, pulled back a tiny little bit on October 23, but still a major, major move. This is basically on the effect of a weaker dollar versus the Brazilian real, since GOL is basically a domestic airline and almost all their revenue is denominated in real, which means that when the real gets cheap against the dollar, it hurts their revenue, especially because most of their costs, a lot of their costs, probably about 80% of their costs are denominated in dollars. A strong dollar means what they pay for oil, kerosene, jet fuel, what they pay for debt service, what they pay on airplane leases, all denominated in dollars, goes up, so GOL has been getting hammered on this. The reversal of this is a big deal for the stock.

Hot High Dividend Stocks For 2015: Meritor Inc (MTOR)

Meritor, Inc. (Meritor), incorporated on March 31, 2000, is a global supplier of a range of integrated systems and components to original equipment manufacturers (OEMs) and the aftermarket for the commercial vehicle, transportation and industrial sectors. The company serves commercial truck, trailer, off-highway, military, bus and coach and other industrial OEMs and certain aftermarkets. Its products are axles, undercarriages, drivelines, brakes and braking systems. Meritor serves a range of customers globally, including medium- and heavy-duty truck OEMs, specialty vehicle manufacturers, certain aftermarkets, and trailer producers. Its new business segments are Commercial Truck & Industrial; and Aftermarket & Trailer. On January 2, 2012, it completed the sale of its Commercial Truck manufacturing facility located in St. Priest, France to Renault Trucks SAS, an affiliate of AB Volvo.

The Company�� Commercial Truck segment supplies drivetrain systems and components, including axles, drivelines and braking and suspension systems, for medium- and heavy-duty trucks in North America, South America and Europe. The Industrial segment supplies drivetrain systems including axles, brakes, drivelines and suspensions for off-highway, military, construction, bus and coach, fire and emergency, and other industrial applications. This segment also includes all of its original equipment (OE) businesses in Asia Pacific, including all on- and off-highway activities. The Aftermarket & Trailer segment supplies axles, brakes, drivelines, suspension parts, and other replacement and re-manufactured parts, including transmissions, to commercial vehicle and industrial aftermarket customers. This segment also supplies a range of undercarriage products and systems for trailer applications in North America.

Axles, Undercarriage & Drivelines

The Company is a supplier of axles for medium- and heavy-duty commercial vehicles. Its truck axle product line includes a range of front steer axles and! rear drive axles. Its front steer and rear drive axles can be equipped with its cam, wedge or air disc brakes, automatic slack adjusters, complete wheel-end equipment, such as hubs, rotors and drums, and (through its WABCO Holdings, Inc. (WABCO) joint venture) anti-lock braking systems (ABS) and vehicle stability control systems.

The Company supplies heavy-duty axles for use in off-highway vehicle applications, including construction, material handling, and mining. It also supplies axles for use in medium- and heavy-duty military tactical wheeled vehicles in North America. It also supplies axles for use in buses, coaches and recreational vehicles, fire trucks and other specialty vehicles in North America, Asia Pacific and Europe.

The Company manufacturers heavy-duty trailer axles in North America. Its trailer axles are available in more than 40 models in capacities from 20,000 to 30,000 pounds for all heavy trailer applications and are available with its range of suspension modules, brake products, including drum brakes, disc brakes, anti-lock and trailer stability control systems, and ABS (through our WABCO joint venture). Its supplies universal joints and driveline components, including its Permalube universal joint and RPL Permalube driveline, which are lubricated designs used in the mileage on-highway market. It supplies drivelines in a range of global regions, for use in numerous on-highway vehicle applications, including construction, material handling and mining. It supplies transfer cases and drivelines for use in medium- and heavy-duty military tactical wheeled vehicles, principally in North America. It also supplies transfer cases for use in specialty vehicles in North America. Anti-lock brakes and stability control systems are also used in military vehicles and specialty vehicles. In addition, it supplies trailer air suspension systems and products with an increasing market presence in North America. It also supplies advanced suspension modules for use in light-, ! medium- a! nd heavy-duty military tactical wheeled vehicles, principally in North America. Through a joint venture, it develops, manufactures and sells truck suspensions, trailer axles and suspensions and related wheel-end products in the South American market.

Brakes and Braking Systems

The Company is an independent supplier of air brakes to medium- and heavy-duty commercial vehicle manufacturers in North America and Europe. Through manufacturing facilities located in North America, Asia Pacific and Europe, it manufactures a range of foundation air brakes, as well as automatic slack adjusters for brake systems. Its foundation air brake products include cam drum brakes, which offer lining life and tractor/trailer interchangeability; wedge drum brakes, which are lightweight and provide automatic internal wear adjustment; air disc brakes, and wheel-end components, such as hubs, drums and rotors. Its brakes and brake system components also are used in medium- and heavy-duty military tactical wheeled vehicles, principally in North America. It also supplies brakes for use in buses, coaches and recreational vehicles, fire trucks and other specialty vehicles in North America and Europe, and also supply brakes for commercial vehicles, buses and coaches in Asia Pacific.

Other Products

The Company sells other complimentary products, including third party and private label items, through its aftermarket distribution channels. These products are sold under master distribution or similar agreements with outside vendors and include brake shoes and friction materials; automatic slack adjusters; yokes and shafts; wheel-end hubs and drums; ABS and stability control systems; shock absorbers and air springs; air brakes, air systems, air dryers and compressors.

Advisors' Opinion:

• [By Rich Duprey]

  Auto-parts supplier�Meritor� (NYSE: MTOR  ) �announced yesterday that it's offering�$250�million worth�of senior unsecured notes in a bid to swap out higher-rate debt for notes that carry a lower rate while extending the terms of maturity.

• [By Rich Duprey]

  In an effort to strengthen its balance sheet, auto-parts supplier Meritor (NYSE: MTOR  ) agreed to sell the 50% stake it has in a Brazilian joint venture for�$195 million in cash and other consideration.

Hot Warren Buffett Companies To Buy Right Now: Discover Financial Services(DFS)

Discover Financial Services, a bank holding company, offers direct banking and payment services in the United States. It operates in two segments, Direct Banking and Payment Services. The Direct Banking segment offers Discover card-branded credit cards to individuals and small businesses that are accepted on the Discover Network. This segment also provides other consumer banking products and services, including personal loans, student loans, and prepaid cards, as well as other consumer lending and deposit products, such as certificates of deposit, money market accounts, online savings accounts, and individual retirement account. The Payment Services segment operates the PULSE network, an automated teller machine, debit, and electronic funds transfer network; the Diners Club International network, a global payments network; and third-party issuing business, which includes credit, debit, and prepaid cards issued on the Discover Network by third parties. The company was found ed in 1986 and is based in Riverwoods, Illinois.

Advisors' Opinion:

• [By Jon C. Ogg]

  Discover Financial Services (NYSE: DFS) rose after beating fourth quarter estimates. The credit card issuer said that its loan balances were up 4%, while its sales volume rose by 3%. Shares were up as much as 5% at one point, but a 2% broad market correction managed to bring down those gains to “only” 2.8% to $53.88. This is still close to its high of $56.20 for the year and the stock’s high on Friday was $55.50. Being a financial stock and closing up on a day like Friday is impressive by almost all counts, even if the closing price was only 13-cents above the daily low. The more than 9 million shares which traded was about 3-times normal trading volume for Discover.

Hot High Dividend Stocks For 2015: Global X China Consumer ETF (CHIQ)

Global X China Consumer ETF (the Fund) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Solactive China Consumer Index (the Underlying Index). The Underlying Index is a free float adjusted, liquidity tested and market capitalization-weighted index that is designed to measure performance of the investable universe of companies in the Consumer sector of the Chinese economy, as defined by Structured Solutions AG. Global X Management Company, LLC serves as the investment adviser to the Fund. Advisors' Opinion:

• [By pamatlarge]

  Investors looking to short a particular sector can choose from several Global X long ETFs. The Global X China Consumer ETF (CHIQ) concentrates its investments in consumer cyclical goods and consumer defense goods. The Global X China Energy ETF (CHIE) primarily holds stocks in coal, oil and utility companies. The Global X China Financials ETF (CHIX) only invests in financial services companies and real estate companies. The Global X China Industrials ETF (CHII) holds stocks in industrial companies and basic materials companies. The Global X China Materials ETF (CHIM) invests in basic materials stocks. The Global X China Technology ETF (CHIB) holds technology stocks as the core of its investments. All of these ETFs are particularly sensitive to sector downturns and general economic contractions.

Hot High Dividend Stocks For 2015: Telus Corporation(TU)

TELUS Corporation provides telecommunications products and services primarily in Canada. Its telecommunications products and services include wireless, data, Internet protocol (IP), voice, and television. The company operates through two segments, Wireless and Wireline. The Wireless segment provides digital personal communications, equipment sales, and wireless Internet services. The Wireline segment offers voice local and voice long distance services; data services, which include television, and managed and legacy data services, as well as Internet, enhanced data, and hosting services; and other telecommunications services. TELUS Corporation was founded in 1993 and is based in Burnaby, Canada.

Advisors' Opinion:

• [By Rich Duprey]

  Continuing with its practice of raising its dividend payment every year, Canadian telecom�Telus� (NYSE: TU  ) �announced today�its second-quarter dividend of $0.34 Canadian per share. Last quarter�the payout was $0.32 Canadian per share. That's a 6.25% increase.
  

• [By Tom Taulli]

  Big competitors for BCE include Rogers Communications (RCI) and Telus (TU), though it also faces niche players such as Public Mobile, Wind Mobile and Mobilicity. Until recently, there was buzz that Verizon (VZ) might enter the market by buying up the latter two, though VZ apparently scrapped plans for Canadian expansion until 2014.

• [By Ben Levisohn]

  Abbvie (ABBV)
  Ameren Corp. (AEE)
  Arthur J. Gallagher (AJG)
  E.I. DuPont de Nemours & Co. (DD)
  ENSCO (ESV)
  Enterprise Products Partners LP (EPD)
  General Mills (GIS)
  H&R Block (HRB)
  Hancock Holding (HBHC)
  Kraft Foods Group (KRFT)
  Lorillard (LO)
  Magellan Midstream Partners LP (MMP)
  MarkWest Energy Partners L P (MWE)
  McDonald’s (MCD)
  Microchip Technology (MCHP)
  NextEra Energy (NEE)
  Regency Centers (REG)
  TELUS Corp. (TU)
  West Corp. (WSTC)
  Williams Companies (WMB)

Procter & Gamble: Why Its Beat Doesn’t Matter

Investors haven’t expected much from Procter & Gamble (PG) and the consumer-staples giant has delivered much. That doesn’t look to change much after Procter & Gamble’s financial results today.

Associated Press

Shares of Procter & Gamble have dropped 3.2% during the past 12 months, lagging Unilever’s (UL) 2.5% rise, Colgate-Palmolive’s (CL) 8.7% advance and Kimberly-Clark’s (KMB) 3.1% gain.

The Wall Street Journal has the details on Procter & Gamble’s results:

For the latest quarter, P&G reported a profit of $2.61 billion, or 90 cents a share, up from $2.57 billion, or 88 cents a share, a year earlier. Excluding special items such as restructuring expenses, core earnings rose to $1.04 a share from 99 cents.

Sales fell slightly to $20.56 billion. Organic sales, which exclude impacts from currency movements and acquisitions and divestitures, rose 3%.

Analysts surveyed by Thomson Reuters had expected $1.01 a share in earnings and $20.68 billion in revenue.

Gross margin narrowed to 48.4% from 49.8% as input costs grew 2.5% to $10.6 billion.

The market, however, isn’t giving Procter & Gamble much credit for the beat, thanks to a big drop in its tax rate. Still, Citigroup’s Wendy Nicholson and team don’t understand what the market is worrying about:

While bears will fuss about the lower tax rate contributing to [Procter & Gamble's] EPS in the quarter, we think most folks should be marginally relieved that [Procter & Gamble's] organic sales growth and Core EPS growth was as solid as it was. Indeed, with the global marketplace still both sluggish in terms of overall growth (with marginally better growth in developed markets dragged down by EMs) and intensely competitive (both from a pricing/promotion and innovation perspective), we think the fact that [Procter & Gamble] is on track to deliver double-digit local currency EPS growth this year is pretty darned impressive.

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Shares of Procter & Gamble have dropped 0.9% to $79.91 at 11:27 a.m., while Unilever has gained 0.5% to $44.28, Colgate-Palmolive has fallen 0.5% to $66.05 and Kimberly-Clark has risen 0.4% to $108.83.

How the Dell Deal Will Shake Out

Dell (NASDAQ: DELL  ) has been thinking about a buyout for the better part of a year. The rumor mill caught wind of going-private dealings back in January, and was proven right when founder and CEO Michael Dell presented a solid offer. But he met resistance from corporate raider Carl Icahn, who put together his own competing deal.

The drawn-out process is coming to a close as Institutional Shareholder Services and other investor advisory firms picked a horse in this race. Just in time, too: Dell shareholders are set to vote on Michael Dell's proposal next week.

In the video below, Fool contributor Anders Bylund explains why he sees Michael Dell walking away with the prize -- and why he thinks that Hewlett-Packard (NYSE: HPQ  ) should walk down the same path while there's still time.

Dell is among the most hotly contested buys of 2013, but it's not the only attractive ticker on the market. The Motley Fool's chief investment officer has selected his No. 1 stock for this year. Find out which stock it is in the special free report: "The Motley Fool's Top Stock for 2013." Just click here to access the report and find out the name of this under-the-radar company.

5 Hated Earnings Stocks You Should Love

DELAFIELD, Wis. (Stockpickr) -- Short-sellers hate being caught short a stock that reports a blowout quarter. When this happens, we often see a tradable short squeeze develop as the bears rush to cover their positions to avoid big losses. Even the best short-sellers know that it's never a great idea to stay short once a bullish earnings report sparks a big short-covering rally.

 

 

This is why I scan the market for heavily shorted stocks that are about to report earnings. You only need to find a few of these stocks in a year to help enhance your portfolio returns -- the gains become so outsized in such a short time frame that your profits add up quickly.

 

That said, let's not forget that stocks are heavily shorted for a reason, so you have to use trading discipline and sound money management when playing earnings short-squeeze candidates. It's important that you don't go betting the farm on these plays and that you manage your risk accordingly. Sometimes the best play is to wait for the stock to break out following the report before you jump in to profit off a short squeeze. This way, you're letting the trend emerge after the market has digested all of the news.

 

Of course, sometimes the stock is going to be in such high demand that you risk missing a lot of the move by waiting. That's why it can be worth betting prior to the report -- but only if the stock is acting technically very bullish and you have a very strong conviction that it is going to rip higher. Just remember that even when you have that conviction and have done your due diligence, the stock can still get hammered if The Street doesn't like the numbers or guidance.

 

 

If you do decide to bet ahead of a quarter, then you might want to use options to limit your capital exposure. Heavily shorted stocks are usually the names that make the biggest post-earnings moves and have the most volatility. I personally prefer to wait until all the earnings-related news is out for a heavily shorted stock and then jump in and trade the prevailing trend.

 

With that in mind, here's a look at several stocks that could experience big short squeezes when they report earnings this week.

 

Netflix

 

My first earnings short-squeeze play today is Internet television network player Netflix (NFLX), which is set to release numbers on Monday after the market close. Wall Street analysts, on average, expect Netflix to report revenue $1.27 billion on earnings of 83 cents per share.

 

 

Just recently, Pacific Crest upgraded shares of Netflix to outperform from sector perform on expectations that the company's international growth will accelerate meaningfully over the next 18 months. Pacific Crest has a $500 price target on the shares.

 

The current short interest as a percentage of the float for Netflix is notable at 6.8%. That means that out of the 58.60 million shares in the tradable float, 3.91 million shares are sold short by the bears. This isn't a huge short interest, but it's more than enough to spark a decent short-covering rally post-earnings if the bulls get the earnings news they're looking for.

 

From a technical perspective, NFLX is currently trending right at its 200-day moving average and well below its 50-day moving average, which is neutral trendwise. This stock has been downtrending badly over the last two months, with shares moving lower from its high of $458 to its recent low of $312.10 a share. During that downtrend, shares of NFLX have been consistently making lower highs and lower lows, which is bearish technical price action. That said, shares of NFLX have started to bounce off that $312.10 low and it's starting to move within range of triggering a near-term breakout trade post-earnings.

 

If you're bullish on NFLX, then I would wait until after its report and look for long-biased trades if this stock manages to break out above some near-term overhead resistance levels at $349.73 to $357.48 a share with high volume. Look for volume on that move that hits near or above its three-month average action of 3.16 million shares. If that breakout triggers post-earnings, then NFLX will set up to re-test or possibly take out its next major overhead resistance levels at $370 to its 50-day moving average of $401.63 a share.

 

I would simply avoid NFLX or look for short-biased trades if after earnings it fails to trigger that breakout and then drops back below some near-term support levels at $330 to $320 a share with high volume. If we get that move, then NFLX will set up to re-test or possibly take out its next major support levels at $312.10 to $309 a share. Any high-volume move below those levels will then give NFLX a chance to re-test or drop below its next major support level at $282 a share.

 

iRobot

 

Another potential earnings short-squeeze trade idea is iRobot (IRBT), which designs, develops and markets robots for consumer, defense and security, telemedicine and video collaboration markets worldwide. iRobot is set to release its numbers on Tuesday after the market close. Wall Street analysts, on average, expect the company to report revenue $112.26 million on earnings of 16 cents per share.

 

 

The current short interest as a percentage of the float for iRobot is extremely high at 26.1%. That means that out of the 27.97 million shares in the tradable float, 7.24 million shares are sold short by the bears. The bears have also been increasing their bets from the last reporting period by 19.2%, or by about 1.16 million shares. If the bears get caught pressing their bets into a bullish quarter, then shares of IRBT could easily jump sharply higher post-earnings as the shorts rush to cover some of their bets.

 

From a technical perspective, IRBT is currently trending above its 200-day moving average and just below its 50-day moving average, which is neutral trendwise. This stock has been downtrending over the last month and change, with shares moving lower from its high of $48.36 to its recent low of $35.50 a share. During that move, shares of IRBT have been making mostly lower highs and lower lows, which is bearish technical price action. That said, shares of IRBT have started to bounce off that $35.50 low and its moving back above its 200-day moving average. That move is starting to push shares of IRBT within range of triggering a near-term breakout trade post-earnings.

 

If you're in the bull camp on IRBT, then I would wait until after its report and look for long-biased trades if this stock manages to break out back above its 50-day moving average of $41.58 a share with high volume. Look for volume on that move that hits near or above its three-month average action of 1.13 million shares. If that breakout hits post-earnings, then IRBT will set up to re-test or possibly take out its next major overhead resistance levels at $45 to its 52-week high at $48.36 a share. Any high-volume move above $48.36 will then give IRBT a chance to trend north of $50 a share.

 

I would simply avoid IRBT or look for short-biased trades if after earnings it fails to trigger that breakout and then drops back below some key near-term support at $35.50 a share with high volume. If we get that move, then IRBT will set up to re-test or possibly take out its next major support levels at $33 to $29 a share.

 

VMware

 

Another potential earnings short-squeeze candidate is VMware (VMW), which provides virtualization infrastructure solutions in the U.S. and internationally. VMware is set to release numbers on Tuesday after the market close. Wall Street analysts, on average, expect the company to report revenue of $1.35 billion on earnings of 79 cents per share.

 

 

Just recently, CLSA upgraded shares of VMware to outperform on expectations the company is best positioned to capitalize on the software defined data center segment. The firm raised its price target on the stock to $115 a share from $99 a share.

 

The current short interest as a percentage of the float for VMware is very high at 23%. That means that out of the 80.64 million shares in the tradable float, 18.46 million shares are sold short by the bears. The bears have also been increasing their bets from the last reporting period by 1.5%, or by about 272,000 shares. If the bears get caught pressing their bets into a strong quarter, then shares of VMW could easily surge sharply higher post-earnings as the shorts jump to cover some of their positions.

 

From a technical perspective, VMware is currently trending above both its 50-day and 200-day moving averages, which is bullish. This stock has been uptrending for the last three months, with shares moving higher from its low of $86.88 to its recent high of $112.89 a share. During that move, shares of VMW have been making mostly higher lows and higher highs, which is bullish technical price action.

 

If you're bullish on VMW, then I would wait until after its report and look for long-biased trades if this stock manages to break out above some near-term overhead resistance levels at $104.50 to $107.50 a share with high volume. Look for volume on that move that hits near or above its three-month average action of 2.43 million shares. If that breakout kicks off post-earnings, then VMW will set up to re-test or possibly take out its 52-week high at $112.89 a share. Any high-volume move above that level will then give VMW a chance to tag or take out $120 a share.

 

I would avoid VMW or look for short-biased trades if after earnings it fails to trigger that breakout and then drops back below some key near-term support levels at $100 to $98.88 a share with high volume. If we get that move, then VMW will set up to re-test or possibly take out its next major support level at $92.73 to its 200-day moving average at $88.55 a share.

 

ResMed

 

Another earnings short-squeeze prospect is medical equipment player ResMed (RMD), which is set to release numbers on Wednesday after the market close. Wall Street analysts, on average, expect ResMed to report revenue of $400.01 million on earnings of 64 cents per share.

 

The current short interest as a percentage of the float for ResMed is extremely high at 25.6%. That means that out of the 139.26 million shares in the tradable float, 35.89 million shares are sold short by the bears. The bears have also been increasing their bets from the last reporting period by 5%, or by about 1.72 million shares. If the bears get caught pressing their bets into a bullish quarter, then shares of RMD could easily trend sharply higher post-earnings as the shorts rush to cover some of their positions.

 

From a technical perspective, RMD is currently trending above its 50-day moving average and just below its 200-day moving average, which is neutral trendwise. Shares of RMD have started to flirt with a near-term breakout trade today, since the stock has tested some past overhead resistance at $48.07 a share. That move is starting to push shares of RMD within range of triggering a much bigger breakout trade post-earnings.

 

If you're bullish on RMD, then I would wait until after its report and look for long-biased trades if this stock manages to break out above some key overhead resistance levels at $51.22 to $51.32 share with high volume. Look for volume on that move that hits near or above its three-month average action of 1.17 million shares. If that breakout hits post-earnings, then RMD will set up to re-fill some of its previous gap-down-day zone from October of 2013 that started just above $56 a share. If that gap gets filled with strong upside volume flows, then RMD could easily trend north of $60 a share.

 

I would simply avoid RMD or look for short-biased trades if after earnings it fails to trigger that breakout and then drops back below its 50-day moving average of $44.87 a share with high volume. If we get that move, then RMD will set up to re-test or possibly take out its next major support levels at $43 to $41.29 a share. Any high-volume move below those levels will then give RMD a chance to re-test its next major support level at $37.22 a share.

Top 5 Insurance Stocks To Buy Right Now

 

Quest Diagnostics

 

My final earnings short-squeeze play is diagnostic testing, information and services provider Quest Diagnostics (DGX), which is set to release numbers on Thursday before the market open. Wall Street analysts, on average, expect Quest Diagnostics to report revenue of $1.75 billion on earnings of 89 cents per share.

 

The current short interest as a percentage of the float for Quest Diagnostics is extremely high at 17.3%. That means that out of the 143.70 million shares in the tradable float, 24.80 million shares are sold short by the bears. If the bulls get the earnings news they're looking for, then shares of DGX could easily rip sharply higher post-earnings as the bears rush to cover some of their bets.

 

From a technical perspective, DGX is currently trending above both its 50-day and 200-day moving averages, which is bullish. This stock has been consolidating and trending sideways for the last month, with shares moving between $57 on the downside and $61.15 on the upside. Any high-volume move above the upper-end of that sideways trading chart pattern post-earnings will triggering a big breakout trade for shares of DGX.

 

If you're in the bull camp on DGX, then I would wait until after its report and look for long-biased trades if this stock manages to break out above some near-term overhead resistance levels at $60.76 to $61.15 a share with high volume. Look for volume on that move that hits near or above its three-month average volume of 2.55 million shares. If that breakout hits, then DGX will set up to re-test or possibly take out its 52-week high at $64.10 a share. Any high-volume move above that level will then give DGX a chance to tag $70 to $75 a share.

 

I would avoid DGX or look for short-biased trades if after earnings it fails to trigger that breakout, and then drops back below both its 200-day at $57.17 to its 50-day at $55.26 a share with high volume. If we get that move, then DGX will set up to re-test or possibly take out its next major support levels at $53 to $50 a share.

 

To see more potential earnings short squeeze plays, check out the Earnings Short-Squeeze Plays portfolio on Stockpickr.

 

-- Written by Roberto Pedone in Delafield, Wis.

 

RELATED LINKS:

 

>>Want to Buy Apple? Think Again

 

>>5 Big Trades to Survive a Roller Coaster Market

 

>>3 Stocks Spiking on Unusual Volume

 

Follow Stockpickr on Twitter and become a fan on Facebook.

 

At the time of publication, author had no positions in stocks mentioned.

 

Roberto Pedone, based out of Delafield, Wis., is an independent trader who focuses on technical analysis for small- and large-cap stocks, options, futures, commodities and currencies. Roberto studied international business at the Milwaukee School of Engineering, and he spent a year overseas studying business in Lubeck, Germany. His work has appeared on financial outlets including CNBC.com and Forbes.com.

 

You can follow Pedone on Twitter at www.twitter.com/zerosum24 or @zerosum24.

Weekly Insider Sells Highlight

Top Food Stocks To Own Right Now

According to GuruFocus Insider Data, the largest insider sells during the past week were: AthenaHealth Inc, Gilead Sciences Inc, JPMorgan Chase & Co, and Walgreen Company.

The overall trend of insiders is illustrated in the chart below:

AthenaHealth, Inc. (ATHN): Director David Eric Robinson sold 60,000 Shares

Director David Eric Robinson sold 60,000 shares of ATHN stock on 04/14/2014 at the average price of $140.61. David Eric Robinson owns at least 3,692 shares after this. The price of the stock has increased by 3.53% since.

AthenaHealth, Inc is a provider of Internet-based business services for physician practices. AthenaHealth, Inc. has a market cap of $5.44 billion; its shares were traded at around $145.58 with a P/E ratio of 8563.50 and P/S ratio of 9.54. AthenaHealth, Inc. had an annual average earnings growth of 23.90% over the past 5 years.

The company has reported its fourth quarter 2013 results. Total revenues grew by 48% over the prior year quarter. GAAP net income was $13.1 million, or $0.34 per diluted share. Non-GAAP adjusted operating income was $34.1 million.

CEO and President Jonathan Bush sold 1,000 shares of ATHN stock on 04/02/2014 at the average price of $161.74. President, Enterprise Services Stephen N Kahane sold 10,000 shares of ATHN stock on 04/16/2014 at the average price of $143.96. Other insiders have also sold shares of ATHN stock recently.

Gilead Sciences Inc (GILD): EVP, R&D and CSO Norbert W Bischofberger sold 90,000 Shares

EVP, R&D and CSO Norbert W Bischofberger sold 90,000 shares of GILD stock on 04/14/2014 at the average price of $67.03. Norbert W Bischofberger owns at least 119,302 shares after this. The price of the stock has increased by 4.43% since.

Gilead Sciences, Inc. was incorporated in Delaware on June 22, 1987. Gilead Sciences Inc has a market cap of $107.68 billion; its shares were traded at around $70.00 with a P/E ratio of 38.40 and P/S ratio of 10.59. Gilead Sciences Inc had an annual average earnings growth of 8.20% over the past 5 years.

Gilead Sciences Inc. had reported fourth quarter 2013 sales of $3.04 billion, up 21% compared to sales of $2.51 billion a year ago. Net income was $791.4 million, compared to $762.5 million prior year quarter.

Chairman and CEO John C Martin sold 140,625 shares of GILD stock on 04/01/2014 at the average price of $73.26. EVP Commercial Ops Paul Rutherford Carter, and director John Francis Cogan both also sold shares of GILD stock.

JPMorgan Chase & Co (JPM): Managing Director Daniel E Pinto sold 98,910 Shares

Managing Director of JPMorgan Chase & Co (JPM) Daniel E Pinto sold 98,910 shares on 04/14/2014 at an average price of $55.22.

JPMorgan Chase & Co is incorporated under Delaware law in 1968. JPMorgan Chase & Co has a market cap of $209.11 billion; its shares were traded at around $55.22 with a P/E ratio of 12.80 and P/S ratio of 2.18. The dividend yield of JPMorgan Chase & Co stocks is 2.80%. JPMorgan Chase & Co had an annual average earnings growth of 9.30% over the past 10 years.

JPMorgan Chase & Co has recently released its first quarter 2014 results. Quarterly net income was $5.3 billion compared to $6.5 billion in the first quarter of 2013. Revenue was $23.9 billion, a decrease of 8% year-over-year. Return on tangible common equity was 13% compared with 17% in the prior year quarter.

CFO Marianne Lake sold 4,879 shares of JPM stock on 04/14/2014 at the average price of $54.89.General Counsel Stephen M Cutler and multiple other insiders have also sold shares of JPM stock over the past week.

Walgreen Company (WAG): Pres., Pharmacy, Health & Well Kermit R Crawford sold 74,287 Shares

Pres., Pharmacy, Health & Well Kermit R Crawford sold 74,287 shares of WAG stock on 04/15/2014 at the average price of $66.01. Kermit R Crawford owns at least 90,166 shares after this. The price of the stock has increased by 1.12% since.

Walgreen Company was incorporated in the state of Illinois in 1909 as a successor to a business founded in 1901. Walgreen Company has a market cap of $63.7 billion; its shares were traded at around $66.75 with a P/E ratio of 23.50 and P/S ratio of 0.86. The dividend yield of Walgreen Company stocks is 1.80%. Walgreen Company had an annual average earnings growth of 9.60% over the past 10 years. GuruFocus rated Walgreen Company the business predictability rank of 3.5-star.

Walgreen Co. has released its fiscal second quarter 2014 results ended February 28, 2014. GAAP net income was $754 million ($0.78 per diluted share) for the quarter, compared to income of $756 million ($0.79 per share) last year. Quarterly sales increased 5.1% to $19.6 billion.

SVP, International Robert G Zimmerman sold 26,201 shares of WAG stock on 04/16/2014 at the average price of $66.07.

For the complete list of stocks that bought/sold by their company executives, go to: Insider Buys.

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1 Reason WNS Looks Attractive

Margins matter. The more WNS (NYSE: WNS  ) keeps of each buck it earns in revenue, the more money it has to invest in growth, fund new strategic plans, or (gasp!) distribute to shareholders. Healthy margins often separate pretenders from the best stocks in the market. That's why we check up on margins at least once a quarter in this series. I'm looking for the absolute numbers, so I can compare them to current and potential competitors, and any trend that may tell me how strong WNS's competitive position could be.

Here's the current margin snapshot for WNS over the trailing 12 months: Gross margin is 32.4%, while operating margin is 7.8% and net margin is 4.6%.

Unfortunately, a look at the most recent numbers doesn't tell us much about where WNS has been, or where it's going. A company with rising gross and operating margins often fuels its growth by increasing demand for its products. If it sells more units while keeping costs in check, its profitability increases. Conversely, a company with gross margins that inch downward over time is often losing out to competition, and possibly engaging in a race to the bottom on prices. If it can't make up for this problem by cutting costs -- and most companies can't -- then both the business and its shares face a decidedly bleak outlook.

Of course, over the short term, the kind of economic shocks we recently experienced can drastically affect a company's profitability. That's why I like to look at five fiscal years' worth of margins, along with the results for the trailing 12 months, the last fiscal year, and last fiscal quarter (LFQ). You can't always reach a hard conclusion about your company's health, but you can better understand what to expect, and what to watch.

Here's the margin picture for WNS over the past few years.

Source: S&P Capital IQ. Dollar amounts in millions. FY = fiscal year. TTM = trailing 12 months.

Because of seasonality in some businesses, the numbers for the last period on the right -- the TTM figures -- aren't always comparable to the FY results preceding them. To compare quarterly margins to their prior-year levels, consult this chart.

Source: S&P Capital IQ. Dollar amounts in millions. FQ = fiscal quarter.

Here's how the stats break down:

Over the past five years, gross margin peaked at 32.4% and averaged 26.1%. Operating margin peaked at 7.8% and averaged 5.2%. Net margin peaked at 4.6% and averaged 2.5%. TTM gross margin is 32.4%, 630 basis points better than the five-year average. TTM operating margin is 7.8%, 260 basis points better than the five-year average. TTM net margin is 4.6%, 210 basis points better than the five-year average.

With TTM operating and net margins at a 5-year high, WNS looks like it's doing great.

Is WNS playing the right part in the new technology revolution? Computers, mobile devices, and related services are creating huge amounts of valuable data, but only for companies that can crunch the numbers and make sense of it. Meet the leader in this field in "The Only Stock You Need To Profit From the NEW Technology Revolution." Click here for instant access to this free report.

Add WNS to My Watchlist.

Natural Resource Stocks For Income, Value And Growth Investors

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Both the Dow Jones Industrial Average and the Standard & Poor's 500 Index are down in recent market action, prompting speculation that a correction is coming.

If a downturn does ensue, income, value and growth investors should take that event as an opportunity to buy stocks in the natural resource sector; stocks such as BP PLC (NYSE: BP), BHP Billiton (NYSE: BHP) and others at a discount for long term gains.

For income investors, it does not get much better than BP PLC or BHP Billiton.

At present, the average dividend yield for a member of the Standard & Poor's 500 Index is under two percent. The dividend yield for BP, the second largest oil company in Europe, is 4.77 percent. BHP Billiton, the world's largest natural resources firm, has a dividend yield of 3.37 percent. Both have a history of dividend growth to reward long term investors.

Related: 3 Reasons Family Offices Should Crowdfund 

Goldcorp (NYSE: GG), the world's largest gold company, has a great deal of appeal to value investors. It is selling under book value. Not only that, it is much more cheaply priced than many other precious metal firms. Increasing the appeal of Goldcorp is a low level of debt and high dividend yield of 2.53 percent.

Growth investors, meanwhile, should be pleased with the prospects of Premium Exploration (OTC: PMMEF) and Mondial Ventures (OTC: MNVN).

Both are very promising small caps operating in North America, a feature for which investors are willing to pay a premium. It is a dangerous world for natural resource businesses, which makes the United States very alluring for investors. Premium Exploration is a gold company with valuable holdings in Idaho -- while Mondial Ventures operates in the legendary oil country of Texas.

Small caps like these are where growth investors need to be in natural resources, as the high growth days for larger entities such as BHP Billiton and BP PLC are long gone.

If a correction is coming, then the natural resources sector will be attractive. Growth from China, India and other countries is increasing the demand for oil, gold and other commodities. China and India are the two biggest buyers of gold. For many products, China is the largest consumer on the planet.

Given those and other factors, long-term investors should be pleased by the returns from BP PLC, Premium Exploration, BHP Billiton, Mondial Ventures, and others in the natural resources group.

Posted-In: China Gold India metals and mining natural resources OilLong Ideas News Emerging Markets Dividends Small Cap Analysis Commodities Global Economics Markets Trading Ideas Best of Benzinga

© 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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Don’t Bet Against Warren Buffett

To many investors, Warren Buffett is over the hill. At 83, they say, he has lost more than a few steps. Over the past five years, the Class B shares of Berkshire Hathaway (BRK.B), the sprawling conglomerate he presides over, returned an annualized 14.8%—an average of 3.9 percentage points per year less than Standard & Poor's 500-stock index. There's nothing cutting edge about the insurance companies, railroads and utilities Berkshire owns. What's more, when Buffett leaves Berkshire, who will manage the company?

See Also: Dividends from Berkshire? Not on Buffett's Watch

To all that skepticism, Matthew Coffina, editor of Morningstar Stock Investor, says, essentially, "nuts." I couldn't agree with him more.

Sure, Berkshire's stock will lag in powerful markets, as it has in the current one. But Coffina says Berkshire will handily beat the S&P 500 in flat and down years. Overall, he predicts that Berkshire will return roughly 10% annually over the next ten years, and that should easily outpace the S&P 500.

Coffina has made Berkshire the largest position—10.9%—in his newsletter's model "tortoise" portfolio. (The newsletter also has a "hare" portfolio, which consists of slightly more-volatile stocks.) At its current price of $122, Berkshire shares are $21 below Morningstar's $143-per-share estimate of Berkshire's fair value. With so few stocks selling below what Morningstar analysts consider to be fair value, Berkshire looks like a steal. (Unless otherwise noted, prices and returns are as of April 11.)

Berkshire's long-term record is astounding. Berkshire high-priced Class A shares have returned an annualized 20.7% since Buffett took over the company in 1965. That's more than double the return of the S&P 500. Ancient history? Since October 9, 2007, just as the catastrophic 2007-09 bear market was getting under way, Berkshire has returned an annualized 6.3%, an average of 1.7 percentage points better than the S&P index. (Berkshire's Class B shares came into existence in 1996.)

But Buffett doesn't focus on share price as much as he does on book value (assets minus liabilities), his preferred method of figuring his company's performance. From 1965 through the end of 2013, Berkshire's book value has compounded at an average annual rate of 19.7%. That said, Buffett believes that book value underestimates the "intrinsic," or true, value of his company by a "meaningful amount." He has said that Berkshire, which is awash in cash, will buy back shares when they fall to 120% of book value, or about $108.

Buffett's buyback plans, Coffina says, "put a psychological floor under the stock, not that far below where we are currently."

Perhaps the biggest question on the minds of Berkshire shareholders is who will replace Buffett and Vice Chairman Charlie Munger, who are both in their 80s, when they leave the scene. Buffett has hired two talented stock pickers, Ted Weschler and Todd Combs, to manage Berkshire's massive stock portfolio; each already manages $7 billion worth of Berkshire assets. The bigger issue will be who runs the rest of the company. Buffett and the Berkshire board say they have a plan in place and have identified potential successors, but haven't disclosed any names yet.

No doubt Berkshire's price will plunge when Buffett announces his retirement or dies. But Coffina says Buffett is "taking the right steps to ensure that Berkshire's culture endures." He adds: "Berkshire has assembled a unique collection of businesses with solid management, sustainable competitive advantages and the ability to compound intrinsic value for years to come."

Buffett likes to say that he stays within his "circle of competence" when buying stocks or entire companies. That has led him to avoid technology altogether. The empire he has built contains an enormous number of companies in a variety of businesses.

Berkshire's "crown jewels," says Coffina, are in its insurance businesses: Geico and reinsurers General Re and Berkshire Hathaway Reinsurance. Berkshire's financial strength gives it the capital to underwrite risks that most firms can't—or won't—touch. Coffina says Berkshire's underwriting discipline and investing discipline distinguish it from competitors.

The insurance businesses allow Buffett to invest money during the often lengthy period after premiums are received but before claims must be paid out to policyholders. This "float" now stands at $77 billion.

Outside of insurance, Berkshire owns the Burlington Northern Santa Fe railroad and utility MidAmerican Energy, in addition to a hodgepodge of other businesses. Among the more recognizable names: Fruit of the Loom, Benjamin Moore paints, Shaw carpets, Dairy Queen and Clayton Homes.

To get a sense of just how sprawling Berkshire is, the 30-plus newspapers it owns represent no more than a rounding error in the company's $222 billion book value.

Coffina puts it well: "Berkshire's existing businesses can stand on their own. Although I think management will continue to add value for shareholders through new acquisitions and investments, this isn't necessary for Berkshire to be a worthwhile holding."

Plus, of course, Berkshire has major stock holdings in such companies as American Express (AXP), Coca-Cola (KO), International Business Machines (IBM) and Wells Fargo (WFC).

My bottom line: Buffett is to investing as Albert Einstein was to physics. Buffett may well be past his prime, but Einstein was a pretty smart old man, too.

Steve Goldberg is an investment adviser in the Washington, D.C., area.

What companies want from college grads

Employers expect to hire more college graduates from the class of 2014 than from the class of 2013, shows an update to the National Association of Colleges and Employers job outlook survey out Wednesday.

Employers plan to hire 8.6% more graduates this year than from the class of 2013. Though NACE says that rate of increase is about the same as in past years.

"Even though it's positive, we consider it somewhat flat," says Andrea Koncz, employment information officer for NACE. "It's not going gangbusters or anything."

So what's the recipe for job success? Bachelor's degrees are most in demand. And business, engineering, and accounting majors – you are a hot commodity. Nearly 70% of the employers who responded to the survey are hiring business majors. That's the most of any major.

Business majors also have the highest average starting salary, according to another survey from NACE out earlier this month. The average starting salary for business majors from the class of 2014 is $53,901, down slightly from the class of 2013's $54,234.

Health sciences and education students – sorry. You're at the bottom of the list. Less than 5% of employers want to hire you. Keep in mind though: The data reflect the types of companies that responded to the survey. The majority of respondents represent industries including finance, insurance and real estate, Koncz says.

But the average starting salary for health sciences gained the most ground this year. Students with that degree are expected to make an average of $51,541, up 3.7% from $49,713 last year.

Top 5 Services Stocks To Watch Right Now

Fall recruiting for the class of 2015 looks even more promising. About 43% of companies said they plan to hire more grads during fall 2014 recruiting than last year. During fall 2013 recruiting, less than a third of employers said they planned to hire more graduates. Still, Koncz says, "it's a ! bit early to see what they're actually going to do."

Why Tile Shop Is Poised to Keep Rallying

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, natural stone tile retailer Tile Shop Holdings (NASDAQ: TTS  ) has earned a coveted five-star ranking.

With that in mind, let's take a closer look at Tile Shop and see what CAPS investors are saying about the stock right now.

Tile Shop facts

Headquarters (founded)	Plymouth, Minn. (1985)
Market Cap	$1.4 billion
Industry	Home improvement retail
Trailing-12-Month Revenue	$193.6 million
Management	Founder/CEO Robert Rucker CFO Timothy Clayton
Trailing-12-Month Return on Capital	Best Defense Companies To Watch In Right Now 26.3%
Cash/Debt	$15.8 million / $68.8 million
Competitors	Home Depot  Lowe's Companies

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 98% of the 160 members who have rated Tile Shop believe the stock will outperform the S&P 500 going forward.

Just yesterday, one of those Fools, pmadiraju, explained why the stock still has plenty of room to run:

The real estate market is turning around. Assuming home prices increase over time, equity in the homes increases, and home owners will spend money upgrading homes. TTS has a veteran management team, and is poised to increase stores across the country. I should have been in TTS 4 or 5 months back. Better late than never! Strongly outperform for the next 5 years!

If you want market-thumping returns, you need to put together the best portfolio you can. Of course, despite a strong five-star rating, Tile Shop may not be your top choice.

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

Stocks Surge, Dow Climbs Triple Digits

Stocks were jumping Monday, recovering some of the ground lost in Friday's big slide, helped by positive earnings news and retail sales.

Just before 11, the Dow Jones Industrial Average was up 120 points, or 0.8% to 16,146, while the Nasdaq, which had its biggest losses since 2012 on Friday, added 47 points, or 1.2%, to 4,046.  The S&P 500 was up 16 points, or 0.9%, to 1,832.

Part of the optimism comes from today's retail sales data, out from the Commerce Department, which showed the biggest jump since 2012. A better-than-expected earnings report from Citigroup (C) also improved the market's mood.

Citi isn't the only name to beat expectations this quarter. Thomson Reuters data out today show that of the 6% of S&P companies that have reported first-quarter earnings thus far, 51.6% have reported better-than-expected earnings per share, with 16.1% meeting expectations and 32.3% missing.  The picture is cloudier for revenue, however, with just 48.4% reporting above-consensus sales, and 51.6% missing expectations.  In a typical quarter, 62% of companies beat bottom-line estimates, and 61% beat top-line estimates.

Twitter stock already downgraded

  Twitter now under Wall St. microscope NEW YORK (CNNMoney) Twitter bird, you've flown too high. At least that's what some on Wall Street think.

Twitter enjoyed a white-hot initial public offering Thursday, with shares closing 73% higher. But analysts were extremely quick to tamp down the euphoria. Several wondered why Twitter (TWTR) deserves to be worth about $24.4 billion.

"That valuation is simply far too high for a company that's losing money and seeing their rate of sales growth decrease," said Brian Hamilton, the chairman of financial analysis firm Sageworks.

Twitter revealed in its IPO paperwork that it has not turned a profit for at least the last three years, and losses accelerated in the first nine months of 2013.

But that didn't stop investors from sending Twitter sharply higher in its market debut. That worried Pivotal Research Group senior analyst Brian Wieser.

Less than one hour after Twitter began trading, Wieser downgraded his rating on the stock to "sell" from "buy."

"Twitter is simply too expensive" at any level above the low $30s per share, Wieser wrote in a note to clients. He has a $30 price target on the stock. Twitter closed at $44.90 on Thursday. The stock was down more than 3% in late morning trading Friday.

Related story: Facebook is a better stock than Twitter

At $45 a share, Wieser pointed out, Twitter's valuation isn't too far below more established media companies like CBS (CBS, Fortune 500), Discovery Communications (DISCA) and Yahoo (YHOO, Fortune 500).

Wieser thinks $45 per share would be justified only if Twitter could log more than $6 billion in annual sales by 2018. But he said that revenue figure would be "overly optimistic." The company had $422 million in sales in the first nine month! s of 2013.

  NYSE CEO on Twitter IPO and Facebook

Wieser was a teddy bear compared to some other analysts.

Peter Garnry, head of equity strategy at Saxo Bank, slammed Twitter's stock, saying the company's current valuation "defies reality."

"The valuation at these price levels is disconnected from any logical calculation," Garnry wrote in a note to clients Thursday, "and reflects a huge downside risk for investors if Twitter does not meet expectations at every quarterly earnings release from now on."

Best Value Stocks To Own Right Now

That type of pressure can make the transition from private to public company a rocky one, as it was for the likes of Facebook (FB, Fortune 500), Groupon (GRPN) and Zynga (ZNGA). Like those startups before it, Twitter will now have to endure the scrutiny of shareholders and analysts. Twitter is likely to face its first grilling from Wall Street in January, when it is expected to report its results for the fourth quarter and all of 2013.

Top Quality Companies To Watch For 2015

Value investing is one of the most intuitively appealing investment methods out there, and the reason is simple: Everyone loves a bargain. But just like smart shoppers ask tough questions about product quality before they jump on a sale-priced item, so too do value investors have to look closely at beaten-down stocks to decide whether they're truly good values or just cast-off clearance-rack companies with few future prospects.

The dangers of cheap stocks
If value investing were as simple as finding stocks trading at cheap prices, then it would be a trivial endeavor to make money. Even most beginning investors understand that low share prices by themselves mean nothing, as the total value of a company depends not only on the price per share of stock but also on the number of shares outstanding. A company with 1 million shares priced at $100 is worth the same as one with 100 million shares priced at $1, so gauging whether a stock is expensive or cheap based solely on share price doesn't give you enough information to draw valid conclusions.

Top Quality Companies To Watch For 2015: Shoe Carnival Inc (SCVL)

Shoe Carnival, Inc. is a family footwear retailer. The Company offers customers an assortment of dress, casual and athletic footwear for men, women and children with emphasis on national and regional name brands. The Company�� stores averaged approximately 10,800 square feet, ranging in size from 6,000 to 26,500 square feet. As of January 28, 2012, the Company operated 327 stores located across 32 states and offered online shopping at www.shoecarnival.com. Its average store carries approximately 28,500 pairs of shoes in four general categories, such as men��, women��, children�� and athletics. In addition to footwear, its stores carry selected accessory items complementary to the sale of footwear.

The Company operates a single 410,000 square foot distribution center located in Evansville, Indiana. Women��, men�� and children�� non-athletic footwear categories are further divided into dress, casual, sport, sandals and boots. It classifies athletic shoes by functionality, such as running, basketball or fitness shoes. During the fiscal year ended January 28, 2012 (fiscal 2011), athletic styles, including children�� sizes, have represented approximately 50% of its footwear sales.

Advisors' Opinion:

• [By Lauren Pollock]

  Shoe Carnival Inc.'s(SCVL) fiscal third-quarter earnings slid 11%, with revenue declining due to an unfavorable calendar shift from the previous year.

• [By DailyFinance Staff]

  Job creation last month was shockingly weak, but analysts couldn't really explain why –- other than to blame the weather -- which left investors unsure how to react Friday. Many analysts say the numbers are likely to be revised higher next month, and in the end, market reaction was muted. The Dow Jones industrial average (^DJI) lost ground for a third straight day, declining nearly 8 points, but the Standard & Poor's 500 index (^GPSC) added 4, and the Nasdaq composite index (^IXIC) rose 18 points. Target (TGT) lost more than a point after saying the data breach that began on Black Friday was much worse than previously thought. The company now says as many as 70 million customers had personal information stolen. Target also lowered its fourth quarter outlook, partly because sales slumped after the data breach was first revealed. Sears (SHLD) tumbled by around 13.5 percent. It expects a big quarterly loss as sales fell during the holiday shopping season. Several smaller, specialty retailers also fell: Pacific Sunwear (PSUN) slid 16 percent, Five Below (FIVE) fell 7 percent, Shoe Carnival (SCVL) lost 5 percent, and Conn's (CONN) lost 2 percent. But Abercrombie & Fitch (ANF) jumped 12 percent. It raised its earnings forecast as sales were not as bad as expected. Elsewhere, Alcoa (AA) fell about 5.5 percent. It's not quite the economic bellwether it used to be, but the aluminum giant still matters, and its net came in a bit shy of expectations. YRC Worldwide (YRCW) tumbled 13 percent after workers rejected a contract offer. That has raised fears the trucking company could be forced into bankruptcy. On the upside, the weak jobs report could keep mortgage rates from rising, and that boosted housing stocks. KB Homes (KBH) rose 3 percent, William Lyons up 4 percent, and Lennar (LEN) was up 2 percent. And on Thursday we reported that shares of Intercept Pharmaceuticals nearly quadrupled in price on news of a positive clinical study for its liver dr

• [By Sue Chang]

  Shoe Carnival (SCVL) �is forecast to post earnings of 52 cents a share in the third quarter.

• [By Jeroen Jongbloed]

  Foot Locker (FL) is a retailer of athletic shoes and apparel which operates 3369 stores in the US, Canada, Europe, Australia and New-Zealand. On July 10th 2013, it completed its acquisition of Runners Point Group. In today's article, I will be looking at FL's revenue, net income, dividend and valuation. At certain points, I will use DSW, Inc. (DSW) and Shoe Carnival, Inc. (SCVL) for comparison.

Top Quality Companies To Watch For 2015: lululemon athletica inc.(LULU)

Lululemon Athletica Inc., together with its subsidiaries engages in the design, manufacture, and distribution of athletic apparel and accessories for women, men, and female youth primarily in Canada, the United States, and Australia. Its apparel assortments include fitness pants, shorts, tops, and jackets for healthy lifestyle activities, such as yoga, running, and general fitness. The company?s fitness-related accessories comprise bags, socks, underwear, yoga mats, instructional yoga DVDs, and water bottles. It sells its products through its retail stores; independent franchises; and a network of wholesale accounts, such as yoga studios, health clubs, and fitness centers, as well as directly to consumers through e-commerce. As of May 1, 2011, the company had 142 corporate-owned and franchise stores under the lululemon athletica and ivivva athletica brand names. Lululemon Athletica Inc. was founded in 1998 and is based in Vancouver, Canada.

Advisors' Opinion:

• [By Nicole Seghetti]

  Not to be outdone, lululemon athletica (NASDAQ: LULU  ) , originally known for its pricey yoga pants, now flaunts lines of running gear targeted toward both sexes. Enjoying $1,900 in sales per square foot, its stores make Lululemon one of the United States' most successful retailers. And growth opportunities abound for the company in North America and overseas, particularly in Europe and Asia.

• [By Teresa Rivas]

  In athletic apparel, lululemon (LULU) gained 4.7% and Under Armour (UA) lost 2.6% as Credit Suisse upgraded the former and downgraded the latter.

  Disney (DIS) also ended strong, building on yesterday�� gains on news it will meaningfully increase its share repurchase plan.

• [By Grace L. Williams]

  It�� no secret that Lululemon (LULU) has been one stock that everyone–from consumers to that investors–really loves to hate. Or at least that’s what we thought.

  Christian Science Monitor/Getty

  But yesterday, Citigroup’s Oliver Chen issued a positive note on Lululemon, and today RBC analyst Howard Tubin stepped off the sidelines and upgraded the battered company to Outperform from Sector Perform. Citing the company�� new leadership, strong brand and the current cheap look of the stock, Tubin sees serious upside. He writes:

  We believe lululemon represents a unique and compelling growth story in the apparel retail space. With most of the bad news from 2013 now in the rear view mirror and the shares meaningfully of their highs, we believe the entry point is compelling. Applying a 24-26 times multiple (a premium to the high-growth/niche softlines peer group based on better than average long-term growth prospects) to our 2014 estimate of $2.15 yields our price target of $56.

  Whether or not it�� truly time for investors to get in where they fit in (bad pun completely intended) remains to be seen, but we just ran a quick check of Lululemon’s stock and it is up 4.6% to $47.53 today at 3:50 p.m.m while Under Armour (UA) has risen 2.8% to $109.14, Nike (NKE) has advanced 1.6% to $72.64 and the Gap (GPS), which bested earnings forecasts today, is up 5.9% to $42.04.

  Still, Luluemon has a long way to go. Even after today’s gain it’s still down 20% this year alone.

• [By Michael Lewis]

  Since debuting on the public markets in 2008, yoga pant fabricator lululemon athletica (NASDAQ: LULU  ) has maintained extremely lofty valuations, often trading north of 40 times earnings. There's no doubt the company has grown quickly and rewarded early investors -- the stock has a to-date gain of nearly 360%. But for the price-conscious, risk-averse investor, it's never been a very appealing stock. That viewpoint has attracted more than just value-oriented investors, as the stock suffered a wardrobe malfunction of tremendous proportions, management shakeups, and now sagging product reviews. How long can Lululemon's valuation fly in an environment of increasing headwinds?

Top 5 Financial Stocks To Buy Right Now: Eldorado Gold Corp(EGO)

Eldorado Gold Corporation, together with its subsidiaries, engages in the discovery, exploration, development, production, and reclamation of gold properties in Brazil, the People?s Republic of China, Greece, and Turkey. It operates the Kisladag gold mine in Turkey; the Jinfeng, Tanjianshan, and White Mountain gold mines in the People?s Republic of China; and the Vila Nova iron ore mine in Brazil. The company?s development projects include the Efemcukuru gold mine in Turkey, the Eastern Dragon gold mine in the People?s Republic of China, the Perama Hill gold project in Greece, and the Tocantinzinho gold project in Brazil. As of December 31, 2010, Eldorado Gold Corporation had 18.7 million ounces of proven and probable gold reserves. The company was formerly known as Eldorado Corporation Ltd. and changed its name to Eldorado Gold Corporation in April 1996. Eldorado Gold Corporation was founded in 1992 and is headquartered in Vancouver, Canada.

Advisors' Opinion:

• [By Patricio Kehoe]

  After reaching a three-month high, gold prices fell once again following the announcement of a possible strike on Syria. Considering investors are already skeptical when it comes to gold mining firms, due to their cyclical nature, Yamana Gold Inc. (AUY) and Eldorado Gold Corp (EGO) have a lot to prove.

• [By Ben Levisohn]

  Newmont has dropped 2.2% to $25.73 at 3:02 p.m. While that’s in-line with the Market Vectors Gold Miners ETF’s (GDX) 2.2% fall to 23.03, it’s better than the most heavily traded gold-mining stocks. Shares of Barrick Gold (ABX), for instance, have dropped 3.6% to $17.20, Gold Corp (GG) is down 3.1% at $23.54 and Eldorado Gold (EGO) has declined 3.9% to $5.82.

Top Quality Companies To Watch For 2015: Accuride Corporation New (ACW)

Accuride Corporation, together with its subsidiaries, engages in designing, manufacturing, marketing, and supplying commercial vehicle components in North America. The company offers heavy- and medium-duty steel and aluminum wheels, light truck steel wheels, and military wheels; and wheel-end components and assemblies, such as brake drums, disc wheel hubs, spoke wheels, disc brake rotors, and automatic slack adjusters. It also provides truck body and chassis parts comprising bumpers, fuel tanks, battery boxes and toolboxes, front-end cross members, muffler assemblies, and crown assemblies and components, as well as fenders, exhaust components, sun visors, windshield masks, step assemblies, brackets, fuel tank supports, inner-hood panels, door assemblies, dash panel assemblies, and various other components. In addition, the company offers ductile and gray iron casting of transmission and engine-related components, which comprise flywheels, and transmission and engine-relate d housings and brackets; and ductile and gray iron casting of industrial components, such as flywheels, pump housings, small engine components, and other industrial components. Accuride Corporation markets its products under Accuride, Gunite, Imperial, and Brillion brand names. It serves heavy- and medium-duty truck, and commercial trailer original equipment manufacturers (OEM); and aftermarket suppliers, including OEM dealer networks, wholesale distributors, and aftermarket buying groups. The company was founded in 1986 and is headquartered in Evansville, Indiana.

Advisors' Opinion:

• [By George Putnam]

  Because of a very leveraged balance sheet, the company—Accuride Corp. (ACW)—could not survive the 2008-09 recession, and it filed for bankruptcy in October 2009.

• [By Seth Jayson]

  Basic guidelines
  In this series, I examine inventory using a simple rule of thumb: Inventory increases ought to roughly parallel revenue increases. If inventory bloats more quickly than sales grow, this might be a sign that expected sales haven't materialized. Is the current inventory situation at Accuride (NYSE: ACW  ) out of line? To figure that out, start by comparing the company's inventory growth to sales growth. How is Accuride doing by this quick checkup? At first glance, pretty well. Trailing-12-month revenue decreased 14.3%, and inventory decreased 30.5%. Comparing the latest quarter to the prior-year quarter, the story looks decent. Revenue dropped 28.6%, and inventory dropped 30.5%. Over the sequential quarterly period, the trend looks healthy. Revenue grew 9.2%, and inventory dropped 6.1%.

Top Quality Companies To Watch For 2015: Esterline Technologies Corp (ESL)

Esterline Technologies Corporation (Esterline) is a manufacturing company serving aerospace and defense customers. The Company designs, manufactures and markets engineered products and systems. It operates in three segments: Avionics & Controls, Sensors & Systems, and Advanced Materials, including thermally engineered components and specialized elastomers and other complex materials, for aerospace and defense markets. Its products are mission-critical equipment, which have been designed into particular military and commercial platforms. It has divested non-core businesses operating as Pressure Systems, Inc., Muirhead Aerospace and Traxsys Input Products Limited. In July 2011, the Company acquired Souriau Group. In December 2013, the Company announced that it has completed acquisition of Joslyn Sunbank Company, LLC, a unit of Meggitt PLC.

Avionics & Controls

The Company�� Avionics & Controls business segment includes avionics systems, control systems, interface technologies and communication systems capabilities. Avionics systems designs and develops cockpit systems integration and avionics subsystems for commercial and military applications. Control systems designs and manufactures technology interface systems for military and commercial aircraft and land- and sea-based military vehicles. Interface technologies manufactures and develops custom control panels and input systems for medical, industrial, military and casino gaming industries. Communication systems designs and manufactures military audio and data products for severe battlefield environments. In addition, communication systems designs and manufactures secure voice and data switching systems for military airborne, ground-based, and shipboard applications. It is engaged in positioning systems (GPS), head-up displays, enhanced vision systems, and electronic flight management systems that are used in a range of control and display applications. In addition, it develops, manufactures and markets technology interface ! systems for commercial and military aircraft. These products include lighted push-button and rotary switches, keyboards, lighted indicators, panels and displays. Its products have been integrated into aircraft designs, including Boeing commercial aircraft platform in production. It manufactures control sticks, grips and wheels, as well as specialized switching systems. In this area, it serves commercial and military aviation, and airborne and ground-based military equipment manufacturing customers.

The Company�� products are incorporated in a range of platforms ranging from military helicopters, fighters and transports, to commercial wide- and narrow-body, regional and business jets. During fiscal year ended October 29, 2010 (fiscal 2010), its customers for these products included BAE Systems, The Boeing Company, Canadian Commercial Corp., Hawker Beechcraft, Honeywell, Hamilton Sunstrand, Lockheed Martin, Rockwell Collins, and Sikorsky. It is also a supplier in custom input integration with a range of keyboard, switch and input technologies for specialized medical equipment, communications systems and comparable equipment for military applications. These products include custom keyboards, keypads, and input devices that integrate cursor control devices, bar-code scanners, displays, video, and voice activation. It also produces instruments that are used for point-of-use and point-of-care in vivo diagnostics. It has developed a range of technologies, including plastic and vinyl membranes that protect high-use switches and fully depressible buttons, and backlit elastomer switch coverings that are resistant to exposure from harsh chemicals. During fiscal 2010, its customers for these products included Alere, Dictaphone, DRS Tactical Systems, General Electric, IDEXX Laboratories, Jabil Circuit, Philips, Roche, Siemens, and WMS.

The Company designs and manufactures military personal communication equipment, primarily headsets. It is a sole supplier of active noise reduction (ANR)! headsets! to the British Army�� tracked and wheeled vehicle fleets under the Bowman communication system program. In the United States, it supplies ANR headsets to the U.S. Army�� tracked and wheeled vehicle fleets under the vehicle intercom system (VIS) and VIS-X programs comprising over 200,000 vehicles, and it is supplier to the United States Marine Corps for their M-ATV fleet. It is ANR headset supplier to the Canadian Army. During fiscal 2010, its customers for these products included Northrop Grumman, Lockheed Martin, Simex Defense, Sanmina-SCI, and the British Ministry of Defence (MoD).

The Company competes with Astronautics, BAE, Bose, ELBIT, EMS, Eaton, GE Aerospace, Honeywell, IAI, L-3, Otto Controls, RAFI, Rockwell Collins, SELEX, Telephonics, Thales, Ultra Electronics, Universal Avionics Systems Corporation and Zodiac.

Sensors & Systems

The Company�� Sensors & Systems business segment includes power systems and advanced sensors capabilities. It develops and manufactures temperature, pressure and speed sensors, electrical power switching, control and data communication devices, and other related systems for aerospace and defense customers. It is a supplier of temperature probes for use on all versions of the General Electric/Snecma CFM-56 jet engine. The customers for its products in this business segment are jet engine manufacturers and airframe manufacturers. During fiscal 2010, some of its customers for these products included The Boeing Company, Bombardier, Dassault, Eurocopter, Flame, General Electric, Honeywell, Rolls Royce, and SAFRAN.

The Company competes with Ametek, Eaton, Goodrich, Hamilton Sundstrand, MPC Products, Meggitt, STPI-Deutsch, Tyco and Zodiac.

Advanced Materials

The Company�� Advanced Materials business segment includes engineered materials and defense technologies capabilities. It develops and manufactures elastomer products used in a range of commercial aerospace, space, and military appl! ications,! and engineered thermal components for commercial aerospace and industrial applications. It also develops and manufactures combustible ordnance and countermeasures for military applications. It specializes in the development of formulations for silicone rubber and other elastomer products. Its elastomer products are engineered to address specific customer requirements where high temperature, high pressure, caustic, abrasive and other difficult eis critical. These products include clamping devices, thermal fire barrier insulation products, sealing systems, tubing and coverings designed in custom-molded shapes. It is a the United States supplier of performance elastomer products to the aerospace industry, with its customers for these products being jet and rocket engine manufacturers, commercial and military airframe manufacturers, as well as commercial airlines. During fiscal 2010, its customers included Alliant Techsystems, The Boeing Company, Honeywell, KAPCO, Lockheed Martin, Northrop Grumman, and Pattonair. It also develops and manufactures lightweight metallic insulation systems for aerospace and marine applications. Its commercial aerospace programs include the 737, A320, and A380 series aircraft and the V2500 and BR710 engines. Its insulation material is used on diesel engine manifolds for earthmoving and agricultural applications. In addition, it specializes in the development of thermal protection for fire, nuclear, and petro-chemical industries. It designs and manufactures temperature components for industrial and marine markets. Its manufacturing processes consist of cutting, pressing, and welding stainless steel, Inconel and titanium fabrications. During fiscal 2010, its customers of these products included Airbus, The Boeing Company, Goodrich, GKN Aerospace, Northrop Grumman, Pattonair, Rolls Royce, Short Brothers, Spirit AeroSystems, and Volvo.

The Company develops and manufactures combustible ordnance and warfare countermeasure devices for military customers. It manufactures ! molded fi! ber cartridge cases, mortar increments, igniter tubes and other combustible ordnance components for the United States Department of Defense. It also monitors safety metrics to ensure compliance. It is a supplier of combustible casings utilized by the United States Armed Forces. These products include the combustible case for the United States Army�� new generation 155 millimeters Modular Artillery Charge System, the 120 millimeters combustible case used with the main armament system on the United States Army and Marine Corps��M1-A1/2 tanks, and the 60 millimeters, 81 millimeters and 120 millimeters combustible mortar increments. It is a supplier of United States Army of infrared decoy flares used by aircraft to help protect against radar and infrared guided missiles. In addition it is a supplier of infrared decoy flares to the MoD and other international defense agencies.

The Company competes with Chemring, Doncasters, Hitemp, J&M, JPR Hutchinson, Kmass, Dunlop Standard Aerospace Group, Rheinmetall, Trelleborg, ULVA and UMPCO.

Advisors' Opinion:

• [By Ben Levisohn]

  Since the initial drop, shares of United Tech have bounced back a bit. They’re down 0.8% at $106.93 at 12:03 p.m. That drop puts it out of step with other industrial stocks, which have been stronger today. General Electric (GE), for instance, has gained 1.1% to $24.16, Honeywell International (HON) has ticked up 0.2% to $83.19, Esterline (ESL) has risen 0.7% to $80.45 and Northrop Grumman (NOC) is up 0.6% at $95.87.

Top Quality Companies To Watch For 2015: Apollo Investment Corporation(AINV)

Apollo Investment Corporation is business development company and operates as a closed-end management investment company. The company invests in middle market companies. It provides direct equity capital, mezzanine and senior secured loans, and subordinated debt and loans. It also seeks to invest in PIPES transactions. The company may also invest in public companies that are thinly traded and may acquire investments in the secondary market. It prefers to invest in warrants, makes equity co-investments, and may also invest in cash equivalents, U.S. government securities, high-quality debt investments that mature in one year or less, high-yield bonds, distressed debt, non-U.S. investments, or securities of public companies that are not thinly traded. The company typically invests in building materials, business services, cable television, chemicals, consumer products, direct marketing, distribution, energy and utilities, financial services, healthcare, manufacturing, media, publishing, retail and transportation. It primarily invests between $20 million and $250 million in its portfolio companies. The company seeks to make investments with stated maturities of five to ten years.

Advisors' Opinion:

• [By James Brumley]

  The seller will let up as soon as the news is a fading memory, which should be soon.

  Apollo Investment Corp. (AINV)

  AINV Dividend Yield: 9.7%

• [By Tim Melvin]

  Here are a couple private equity-powered dividend stocks on my radar right now:

  Apollo Investment (AINV)

  Apollo Global Management (APO) is one of the world�� largest asset management and private equity firms with more than $100 billion under management. Its largest publicly offered vehicle is Apollo Investment (AINV), a business development company that invests in and ends to middle-market companies and pays out 90% of its net income to shareholders.

• [By MONEYMORNING]

  He's much better off in "total return" holdings, like Apollo Investment Corp. (Nasdaq: AINV) which we covered right here, and Kinder Morgan Energy Partners LP (NYSE: KMP), another long-term winner.

Top Quality Companies To Watch For 2015: Peregrine Semiconductor Corp (PSMI)

Peregrine Semiconductor Corporation (Peregrine), incorporated in February 1990, is engaged in the design, manufacturing and marketing radio frequency integrated circuits (RFICs) for the aerospace and defense, broadband, industrial, mobile wireless device, test and measurement equipment, and wireless infrastructure markets. The Company is provider of RFICs. Its products include RF switches-antenna, RFswitches-broadband and general purpose, digital attenuators, synthesizers, mixers/upconverters, prescalers, variable gain amplifiers, digitally tunable capacitors, DC-DC converters and power amplifiers. Its UltraCMOS technology enables the design, manufacture, and integration of multiple radio frequency (RF), mixed signal, and digital functions on a single chip. Its solutions target a range of applications in the aerospace and defense, broadband, industrial, mobile wireless device, test and measurement equipment, and wireless infrastructure markets.

As of December 25, 2010, The Company offers a portfolio of more than 120 RFICs, including switches, digital attenuators, mixers/upconverters, and prescalers, and it is developing power amplifiers (Pas), digitally tunable capacitors (DTCs), and DC-DC converters. During the fiscal year ended December 25, 2010, its products were sold to more than 1,400 module manufacturers, original equipment manufacturers (OEMs), contract manufacturers, and other customers, including such companies as Amalfi Semiconductor, Inc., The Boeing Company, EPCOS AG, Ericsson AB, Hitachi Media Electronics Company, Ltd., Hitachi Metals, Ltd., Humax Co., Ltd., Itron, Inc., LG Innotek Co., Ltd., Mini-Circuits, Inc., Motorola, Inc., Murata Manufacturing Company, Ltd., Planet Technology Corp., Rockwell Collins, Inc., Rohde & Schwarz, Inc., SIPAT Co., Ltd., Skyworks Solutions, Inc., Sony Corporation, Source Photonics, Inc., and Thales Alenia Space.

RF switches-antenna

RF Switches are utilized in the RF section of mobile devices to route RF signals between! the antenna and the handset core, through one or more signal paths. For mobile handsets, its switch products offer up to 10 RF signal paths with integrated digital bus support and onboard voltage regulation.

RFswitches-broadband and general purpose

The Company�� broadband and general purpose RF switches deliver combination of broadband linearity, settling time, and isolation while routing RF signals to their respective transmit or receive paths. Its attributes are being used by the OEMs of LED and plasma digital televisions (DTVs), set top box, cable infrastructure, test and measurement devices

Digital Attenuators

The Company provides digital step attenuators that are used to control the amplitude of an RF or analog signal. The products include digital control circuitry integrated with an RF attenuator core and are used in third generation (3G) and fourth generation (4G) cellular base stations, repeaters, and point-to-point nodes.

Synthesizers

The Company�� frequency synthesizers provide an electronic system for generating any of a range of frequencies from a single fixed timebase or oscillator. Its synthesizers provide low-power, ultra-low phase noise, programmable frequency synthesis for defense, broadband, industrial, and wireless infrastructure markets.

Mixers/Upconverters

The Company�� mixers/upconverters are used to translate encoded voice/data signals from one frequency to another to enable radio transmission. Its mixers / upconverters are incorporated into mixer modules and provide industry linearity, which is a metric to maximizing wireless data transmission rates. These attributes are critical in 3G and 4G cellular base station designs.

Prescalers

The Company�� prescalers operate in the C, X, and Ku bands to divide the frequency of a wireless signal in order to extend the operating range of a synthesizer beyond its base capability. Its prescalers complem! ent its f! requency synthesizer line, providing its customers with design.

Variable Gain Amplifiers

The Company�� Variable Gain Amplifiers (VGAs) are used in both the receiving and transmitting path of a radio system to maintain a signal�� strength at a level necessary for other circuits to operate optimally. Its DVGA is the monolithic integrated circuit (IC) to integrate three functional blocks, including digital attenuators, RF/IF amplifiers and a common serial interface onto a single IC.

DC-DC Converters

The Company�� frequency-configurable DC-DC converters efficiently perform voltage conversion using a high frequency switching technique that minimizes system noise. Its DC-DC converters are designed to enable a distributed power management architecture designed for satellite applications, replacing inefficient drop out regulators and central converters.

Power Amplifiers

The Company�� PAs amplify RF signals in order to generate the necessary power required to establish a radio link between a base station and a mobile device. With its UltraCMOS technology the Company has the ability to integrate its PAs on a single chip with other RF, mixed signal, and digital components.

The Company competes with Hittite, M/A-COM, NEC, Renesas, RFMD, Skyworks, Sony, Toshiba and TriQuint Semiconductor.

Advisors' Opinion:

• [By Lee Jackson]

  Peregrine Semiconductor Corp. (NASDAQ: PSMI) is a lesser known name that is a top stock to buy at Deutsche Bank. The company recently released a new radio frequency (RF) switch specifically designed for broadband cable systems. With HD content exploding, this could be a huge home run for the company. Deutsche Bank has a $14 price target for the stock, the same as the consensus target.

Top Quality Companies To Watch For 2015: LVMH Moet Hennessy Louis Vuitton SA (MC)

LVMH Moet Hennessy Louis Vuitton SA, (LVMH), is a France-based luxury goods company. It owns a portfolio of luxury brands and its business activities are divided into five segments: Wines and Spirits, Fashion and Leather Goods, Perfumes and Cosmetics, Watches and Jewelry, and Selective Retailing. The activities of the wines and spirits sector include the Champagne and Wines branch, and the Cognac and Spirits branch. The Fashion and Leather Goods group includes Louis Vuitton, Kenzo and Rossimoda among others. LVMH is present in the perfume and cosmetics sector through the French Houses Christian Dior and other brands. Watches and Jewelry sells such products as TAG Heuer, Zenith, Dior Watches, Chaumet and Fred, among others. Selective Retailing businesses operate in two segments: travel retail and the seleLVMH ctive retail concepts represented by Sephora and Le Bon Marche. In September 2013, the Company acquired majority stake in Nicholas Kirkwood, a British shoe designer company. Advisors' Opinion:

• [By Sarah Jones]

  LVMH Moet Hennessy Louis Vuitton (MC) SA rose 2.1 percent to 123.30 euros after Goldman Sachs Group Inc. added the luxury- goods maker to its conviction buy list, saying the stock�� underperformance presented an opportunity to invest. The shares fell 8 percent from April 15 through yesterday after the company reported the slowest growth in sales of fashion and leather products since 2009.

Top Quality Companies To Watch For 2015: Amphenol Corporation(APH)

Amphenol Corporation engages in the design, manufacture, and marketing of electrical, electronic, and fiber optic connectors; interconnect systems; and coaxial and specialty cables worldwide. Its Interconnect Products and Assemblies segment produces connectors and connector assemblies primarily for the communications, aerospace, industrial, and automotive markets. This segment provides connector and cable assembly products used in communication applications; smart card acceptor and other interconnect devices used in mobile telephones; set top boxes to facilitate reading data from smart cards; fiber optic connectors used in fiber optic signal transmission; backplane and input/output connectors and assemblies used for servers and data storage devices and linking personal computers and peripheral equipment; sculptured flexible circuits used for integrating printed circuit boards; and hinge products used in mobile phone and other mobile communication devices. It also designs a nd produces radio frequency connector products and antennas used in telecommunications, computer and office equipment, instrumentation equipment, local area networks, and automotive electronics. The company?s Cable Products segment produces coaxial cable and connector products used in cable television systems, including full service cable television/telecommunication systems; radio frequency and fiber optic interconnect components for full service cable television/ telecommunication networks; and data cables and specialty cables used to connect internal components in systems with space and component configuration limitations. Amphenol Corporation markets its products directly, as well as through manufacturers? representatives and distributors to original equipment manufacturers, contract manufacturers, cable system operators, and telecommunication companies. The company was founded in 1932 and is headquartered in Wallingford, Connecticut.

Advisors' Opinion:

• [By Ben Levisohn]

  Competitor AVX Corp. (AVX) has gained 1.1% to $12.96, while Molex (MOLX) has dropped 0.2% to $29.28 and Amphenol (APH) has ticked up 0.3% to $76.32.

• [By Sally Jones] % over 12 months, Amphenol Corporation has a market cap of $12.88 billion and is traded at a P/E of 21.70. The dividend yield is 0.60%.

  The current share price is around $80.94.

  Incorporated in 1987, Amphenol Corporation designs, manufactures and markets electrical, electronic and fiber optic connectors, interconnect systems and coaxial and specialty cable. The markets for the global company's products are communication systems for the converging technologies of voice, video and data communications and a wide range of industrial applications including factory automation and motion control systems, medical and industrial instrumentation, and commercial aerospace and military applications, and many more.

  Guru Action: As of June 30, 2013, Columbia Wanger reduced its position by 0.69%, selling 29,000 shares at an average price of $76.60, gaining 7.5%.

  Columbia Wanger is the top guru stakeholder with 4,184,650 shares or 2.63% of shares outstanding.

  Over a phenomenal five-year trading history, the firm averaged a gain of 215% on 828,250 shares bought at an average price of $25.71 per share. Columbia Wanger also gained 56% selling 1,608,300 shares at an average price of $51.91 per share.

  Check out the very active insider selling and seven gurus holding APH.

  Track share pricing, revenue and net income:

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