Friday, May 31, 2013

Top 5 Gas Utility Companies To Buy Right Now

The fun continues at JPMorgan Chase (NYSE: JPM  ) for bank executives and bank investors. The New York Times is reporting today that the country's biggest bank is under investigation by the Federal Energy Regulatory Commission for "manipulative schemes" in the California and Michigan electric markets.�

This is less than a week after JPMorgan lost yet another top executive. The markets have responded to this news with a 1.02% drop in the share price.

Manipulative schemes and more
The Times' source for the breaking news is what was intended to be a confidential document sent by the federal government to the bank this past March. According to the document, the above-mentioned manipulative schemes allegedly "transformed 'money-losing power plants into powerful profit centers.'"

Top 5 Gas Utility Companies To Buy Right Now: Marlin Business Services Corp.(MRLN)

Marlin Business Services Corp. provides commercial equipment financing solutions primarily to small and mid-sized businesses in the United States. It finances approximately 100 categories of commercial equipment, including copiers, security systems, computers and software, telecommunications equipment, and commercial and industrial equipment. The company offers its solutions through a network of independent commercial equipment dealers and lease brokers, as well as through direct solicitations. As of December 31, 2011, it serviced approximately 65,000 active equipment leases for approximately 55,000 small and mid-sized business customers. The company also operates as the holding company for the Marlin Business Bank, which is a state-chartered commercial bank. In addition, it is involved in reinsurance business activities. The company was founded in 1997 and is based in Mount Laurel, New Jersey.

Top 5 Gas Utility Companies To Buy Right Now: Comverge Inc.(COMV)

Comverge, Inc. provides intelligent energy management (IEM) solutions for utilities, commercial and industrial customers, and residential consumers. The company operates in two segments, Residential Business and Commercial and Industrial Business. The Residential Business segment offers IEM solutions for residential and small commercial end-use participants. Its solutions include IntelliSOURCE software that provides demand management functionality enabling control of various end-use devices and systems, integration into the utility customer?s back office operational systems, and inter-operability with advanced metering infrastructure, as well as offers a two-way real-time communication link to residential customers; a suite of intelligent hardware comprising one-way load control switches, smart thermostats, and in-home displays; and services, including installation, marketing, and program management. This segment also offers virtual peaking capacity (VPC) program that pro vides verifiable kilowatts of capacity by owning and operating the IEM network; and turnkey programs for utilities to the IEM network, and provides services and solutions. The Commercial and Industrial Business segment provides IEM solutions to utilities and independent system operators that manage programs or energy markets for large commercial and industrial consumers. This segment delivers its solutions through the management of megawatts for commercial and industrial consumers in VPC and open market programs, as well as through the completion of energy efficiency projects. It also offers energy efficiency program that provides permanent base load reduction through equipment upgrades, energy auditing and consulting, building automation, lighting retrofits, and other measures to reduce commercial and industrial consumers total energy consumption. The company was founded in 1974 and is headquartered in Norcross, Georgia.

Best Quality Stocks To Own For 2014: Questar Corporation(STR)

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

Advisors' Opinion:
  • [By Peter Leeds]

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

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

  • [By Peter Leeds]

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

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

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

  • [By Peter Leeds]

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

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

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

Top 5 Gas Utility Companies To Buy Right Now: American Select Portfolio Inc.(SLA)

American Select Portfolio Inc. is a close ended fixed income mutual fund launched and managed by FAF Advisors, Inc. It is co-managed by Nuveen Fund Advisors, Inc. and Nuveen Asset Management, LLC. The fund invests in the fixed income markets of the United States. It primarily invests in mortgage-related assets that directly or indirectly represent a participation in or are secured by and payable from mortgage loans. The fund has an overall credit quality of BBB. It benchmarks the performance of its portfolio against the Lehman Brothers Mutual Fund Government/Mortgage Index. The fund will not invest in inverse floaters, principal-only securities, interest-only securities, inverse interest-only securities, Z-bonds. American Select Portfolio Inc. was formed on September 21, 1993 and is domiciled in the United States.

Top 5 Gas Utility Companies To Buy Right Now: Providence and Worcester Railroad Company(PWX)

Providence and Worcester Railroad Company operates as an interstate freight carrier with railroad operations in Massachusetts, Rhode Island, Connecticut, and New York. It transports various commodities that include automobiles, construction aggregates, iron and steel products, chemicals and plastics, including ethanol, lumber, scrap metals, plastic resins, cement, coal, construction and demolition debris, and processed foods and edible foodstuffs, such as corn syrup and vegetable oils. The company also sells properties; grants easements, licenses, and leases of land and tracks; and provides various mechanical services to other railroads, as well as services a double-stack intermodal terminal facility in New England. Providence and Worcester?s rail freight system comprises approximately 516 miles of track. The company was founded in 1969 and is based in Worcester, Massachusetts.

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