Investors should buy Gold on any correction

Last month's sharp sell-off set gold into a consolidation mode. During the month, gold prices traversed in a broad range of $100 from USD 1,725 to USD 1,625. Considering the significant influence that Dollar movements had on gold prices, gold appears to have regained its negative correlation with the US Dollar. Another rather interesting cause of the large swings noticed in gold markets has been "The Bernanke Factor" - the comments and criticism unleashed by Fed Chairman generating market reactions causing volatility in gold and other asset markets as well.

Since Ben Bernanke's prior public speeches did not hint at another round of Quantitative Easing, there was no expectation of any further monetary stimulus in the near term. As a result, gold prices dipped sharply at the end of last month. However, he recently defended the Central bank's very low interest rate policy and the continuing of its accommodative policies, and also spoke about how the US economy needs to grow more quickly in order to bring down unemployment. This recent statement gave rise to speculations that money-printing exercises would continue, and thus, reinstated investor's preference for gold, causing prices to appreciate. 

The volatility in gold prices can be credited to this lack in clarity from policymakers, who despite what they may say, prove in action that they still believe that the economy can only be strengthened through more monetary inflation, further credit expansion and increased government spending. 

Other factors such as the developments in the Euro zone and geopolitical concerns, also influence the value of the dollar and in turn that of gold.

Though it may appear that gold is moving along with risk assets, it is actually simply following its historical relationship with the dollar. The immediate economic concerns have been papered over by the policy makers and therefore before we see a fresh bout of crisis, this movement will likely continue until then. 

The possibility of a decline in the gold consumption of key countries, viz India and China, could also have an adverse impact on gold markets. The economic growth target announced by China is probably the lowest in seven years and has worked against global growth, curbing prospective demand for commodities including gold. On the other hand, the Indian Government, in a bid to improve its surging current account deficit, has further raised its customs duty by 2%. Duties and taxes now add more than 5% to the gold price. The government has also introduced an excise duty of 1% on non-branded jewelry and a consumer tax of 1% on cash transactions for gold purchases exceeding Rs. 2, 00,000 in value. 

While the industry did go on a nationwide strike to oppose these custom hikes, the shutting of shops only further contributed to a decline in demand. Even markets expect that weighing on prices, demand would be impacted, at least in the short term. However, demand from these key consumption centers would likely remain buoyant over the long run baring any short term sentimental impact on demand in the near term.  

Outlook: The global economy is shrouded in various uncertainties. The long term issues of rising deficits and debts are still in want of some meaningful resolution. The western world is still grappling with a massive and unrealistic heap of sovereign debt. These high levels of debt, combined with slow economic growth have compelled central banks around the world to 'print' more dollars (and other currencies), stimulate the economy and inflate away the debt burden with an intentional plan of currency devaluation. Countries such as Iran who has stubbornly carried on with its efforts to develop nuclear plants despite all the talks and sanctions impinged on them; have added to the prevailing uncertainties.

In the light of these macro events, gold appears to remain favorable, as an effective portfolio diversifier. Investors should keep allocating to gold in a systematic manner and could use any corrections as an opportunity to buy in.

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

Best Stocks To Buy For 2014

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Triangle Petroleum  (NYSEMKT: TPLM  )  jumped 10% today after the company released earnings.

So what: Revenue rose 17% in the quarter to $34.3 million, above the $31.5 million estimate. On the bottom line, the company went from a $3 million loss a year ago to a $5.2 million profit, or $0.10 per share, double what Wall Street estimated.  

Now what: Momentum is picking up and quarterly sales volumes were up 284% in the quarter. Management expects drilling costs to decline going forward, and there will be a benefit from gas sales that started in June. There's a lot of risk in small miners but I think the operational momentum and the new profit can push shares higher. 

Interested in more info on Triangle Petroleum? Add it to your watchlist by clicking here.

Best Stocks To Buy For 2014: Southern Copper Corporation(SCCO)

Southern Copper Corporation engages in mining, exploring, producing, smelting, and refining copper and other minerals in Peru, Mexico, and Chile. It is involved in the mining, milling, and flotation of copper ore to produce copper and molybdenum concentrates; smelting of copper concentrates to produce anode copper; and refining of anode copper to produce copper cathodes, as well as refined silver. The company operates Toquepala and Cuajone mines in the Andes Mountains located southeast of the city of Lima, Peru, as well as a smelter and refinery in the coastal city of Ilo, Peru. It also operates La Caridad and Buenavista copper mines, and smelting and refining plants in Mexico. In addition, the company operates five underground mines that produce zinc, copper, lead, silver, and gold; a coal mine which produces coal and coke; and a zinc refinery. Further, it has 145,064 hectares of mineral rights in Peru; 176,250 hectares of exploration concessions in Mexico; 1,068 hectares of exploration concessions in Argentina; 35,958 hectares exploration concessions in Chile; and 2,544 hectares of exploration concessions in Ecuador. The company was founded in 1952 and is based in Phoenix, Arizona. Southern Copper Corporation is a subsidiary of Americas Mining Corporation.

Advisors' Opinion:

• [By Roberto Pedone]

  Southern Copper (SCCO) produces copper, molybdenum, zinc and silver. This stock closed up 4.3% at $28.79 in Friday's trading session.

  Friday's Volume: 3.76 million
  
  Three-Month Average Volume: 1.89 million
  
  Volume % Change: 180%

  From a technical perspective, SCCO soared higher here back above its 50-day moving average of $28.17 with strong upside volume flows. This stock has been downtrending badly for the last six months, with shares plunging lower from its high of $41.35 to its recent low of $25.75. During that downtrend, shares of SCCO have been consistently making lower highs and lower lows, which is bearish technical price action. That said, shares of SCCO have now started to rip off that $25.75 low and quickly move within range of triggering a near-term breakout trade. That trade will hit if SCCO manages to take out some near-term overhead resistance at $29.11 with high volume. If that breakout hits, then SCCO could be ready to reverse its downtrend and enter a new uptrend.

  Traders should now look for long-biased trades in SCCO as long as it's trending above Friday's low of $27.58 or above $27 and then once it sustains a move or close above $29.11 with volume that's near or above 1.89 million shares. If that breakout triggers soon, then SCCO will set up to re-test or possibly take out its next major overhead resistance levels at $34 to $36.

Best Stocks To Buy For 2014: Northwest Resources Ltd (NWR.AX)

Northwest Resources Limited engages in the exploration and development of mineral properties in Australia. It primarily explores for gold and antimony deposits. The companyÂ's principal project is the Blue Spec Shear project located in the eastern Pilbara region of Western Australia. Northwest Resources Limited is based in Sydney, Australia.

Best Stocks To Buy For 2014: Sterlite Industries(India)

Sterlite Industries (India) Limited operates as a non-ferrous metals and mining company in India and internationally. It engages in the smelting and processing of copper and production of copper byproducts. The company?s primary products consist of copper cathode and continuos cast rods, as well as by products comprise sulphuric acid, phosphoric acid, hydrofluoro silicic acid, gypsum, ferro sand, and slime. It also owns the Mt. Lyell copper mine at Tasmania in Australia, as well as owns various zinc assets, including Skorpion Zinc in Namibia; Black Mountain Mines in South Africa; and Lisheen Mines in Ireland. In addition, the company produces aluminum from its bauxite mines. Its aluminum products include aluminum ingots and wire rods; rolled products, such as coils and sheets; and vanadium sludge as a by-product. Further, the company smelts and produces lead and zinc, as well as produces and sells sulphuric acid to fertilizer manufacturers and other industries; and silver ingots primarily to industrial users. It operates three lead-zinc mines in the state of Rajasthan, northwest India. Additionally, it involves in power generations business. As of March 31, 2011, the company had a power generation capacity of 1,041 MW from its thermal power plants and wind power plants. The company was formerly known as Sterlite Cables Limited and changed its name to Sterlite Industries (India) Limited in 1986.The company was incorporated 1975 and is based in Mumbai, India. Sterlite Industries (India) Limited is a subsidiary of Vedanta Resources plc.

Best Stocks To Buy For 2014: CDI Corporation(CDI)

CDI Corp. provides engineering and information technology project outsourcing solutions and professional staffing services primarily in the United States, the United Kingdom, and Canada. It operates in four segments: ES, MRI, Anders, and ITS. The ES segment provides engineering, design, project management, staffing, and outsourcing solutions to oil, gas, refining, alternative energy, power generation and energy transmission, chemicals, and heavy manufacturing industries; engineering, design, logistics, and staffing services to the defense industry, primarily in marine design, systems development, and military aviation support; engineering, design, project management, staffing, and facility start-up services to pharmaceutical, bio-pharmaceutical, and regulated medical services industries; and architecture, civil and environmental engineering, communication technology, and consulting services to governmental, educational, and private industry customers. The MRI segment opera tes as a global franchisor that does business as MRINetwork and provides the use of its trademarks, business systems, and training and support services to its franchisees who engage in the search and recruitment of executive, technical, professional, and managerial personnel for employment by their customers. It also provides training, implementation services, and back-office services to enable franchisees to pursue staffing opportunities. The Anders segment provides contract and permanent placement candidates to customers in the areas of architecture, building services, rail, commercial and industrial construction, consulting engineering, facilities management, interior design, surveying, and town planning. The ITS segment offers various information technology related services, which include staffing augmentation, permanent placement, outsourcing, and consulting. The company was founded in 1950 and is based in Philadelphia, Pennsylvania.

Advisors' Opinion:

• [By Vodicka]

  CDI Corp. provides engineering and information technology outsourcing and professional staffing services to its customers. Its EPS forecast for the current year is 0.45 and next year is 0.76. According to consensus estimates, its topline is expected to grow 10.13% current year and 8.49% next year. It is trading at a forward P/E of 20.04. Out of four analysts covering the company, one is positive and has a buy recommendation and three have hold ratings.

Best Stocks To Buy For 2014: Cathay General Bancorp(CATY)

Cathay General Bancorp operates as the holding company for Cathay Bank, which offers various commercial banking products and services for individuals, professionals, and small to medium-sized businesses primarily in California. Its deposit products include passbook accounts, checking accounts, money market deposit accounts, certificates of deposit, individual retirement accounts, college certificates of deposit, and public funds deposits. The company?s loan portfolio comprises commercial mortgage loans, commercial loans, small business administration loans, residential mortgage loans, real estate construction loans, and home equity lines of credit. It also offers installment loans to individuals for automobile, household, and other consumer expenditures. In addition, the company provides trade financing, letters of credit, wire transfers, forward currency spot and forward contracts, traveler?s checks, safe deposit, night deposit, social security payment deposit, collecti on, bank-by-mail, drive-up and walk-up windows, automatic teller machines, Internet banking, and other customary bank services. As of April 20, 2011, Cathay General Bancorp operated 31 branches in California, 8 branches in New York State, 1 branch in Massachusetts, 2 branches in Texas, 3 branches in Washington State, 3 branches in the Chicago, Illinois area, 1 branch in New Jersey, and 1 branch in Hong Kong, as well as a representative office in Shanghai and in Taipei. The company was founded in 1961 and is headquartered in Los Angeles, California.

Best Stocks To Buy For 2014: Key Energy Services Inc. (KEG)

Key Energy Services, Inc. operates as an onshore rig-based well servicing contractor in the United States and internationally. The company offers rig-based services, including the maintenance, workover, and recompletion of existing oil and gas wells; completion of newly-drilled wells; and plugging and abandonment of wells at the end of their lives, as well as specialty drilling services to oil and natural gas producers. It also provides fluid management services, such as vacuum truck services, fluid transportation services, and disposal services for operators, whose wells produce saltwater or other non-hydrocarbon fluids; and equipment trucks that are used to move large equipment from one well site to the next, as well as supplies frac tanks, which are used for temporary storage of fluids associated with fluid hauling operations. In addition, the company operates a fleet of hot oilers for pumping heated fluids that are used to clear soluble restrictions in a wellbore; and offers intervention services, such as coiled tubing, pumping, and nitrogen service. Further, it provides fishing services that involve recovering lost or stuck equipment in the wellbore utilizing an array of fishing tools; rental equipment comprising drill pipe, tubulars, pressure-control equipment, power swivels, and foam air units, as well as handling tools comprising Hydra-Walk pipe-handling units and services; oilfield service equipment controls, data acquisition, and digital information flow services; and drilling, project management, consulting, and reservoir engineering services. The company was formerly known as Key Energy Group, Inc. and changed its name to Key Energy Services, Inc. in December 1998. Key Energy Services, Inc. was founded in 1977 and is headquartered in Houston, Texas.

Are you chasing FAST money or QUICK money?

The dictionary meaning of 'fast' and 'quick' may be the same. But in "my" financial parlance they are totally different. In fact, so different that it becomes a matter of life and death- or a matter of poverty or prosperity- if you do not appreciate the distinction.

For example, Honda City runs faster than Maruti 800; Mercedes runs faster than Honda City; and Ferrari runs faster than Mercedes.  In short, "fast" as per my definition is inherent in the quality of the product.

For example, Banks FDs give more returns than Savings A/c; Company FDs give more return than Bank FDs; and Shares give more return than Company FDs. In short, there is a product-wise grading of the returns that you can expect from different investments.

If you are planning your investments suitably to earn "faster" returns- based on your risk-talking ability- you are doing fine. No problems at all!

The problem is when people chase "quick" money.

For example, people cut lanes in their Maruti 800 to go ahead of Honda City; Honda City breaks red signal to go ahead of Mercedes; or a Mercedes overtakes from the wrong side to go ahead of Ferrari. In short, "quick" as per my definition is the POOR and DANGEROUS quality of driving.

For example, people invest in FDs of dubious company to earn more returns than bank FDs; they invest in shares based on 'hot' tips to make more money than company FDs; and they trade in Futures and Options to make more money than shares. This is nothing but POOR and DANGEROUS quality of investing.

As you will appreciate, poor quality of driving is too risky. You may be lucky many times for many years. But one- just one- stroke of bad luck and you may not live to tell the tale.

As many incidents in the past- Harshad Mehta scam, C.R. Bhansali scam, Teak Plantation scam, StockGuru scam, Ketan Parekh scam, SpeakAsia Scam, Abhinav Gold scam, Home Trade scam and many more- prove that people lose crores and crores to poor quality of investing. And even if there is no scam, people are losing money every day in F&O trading and penny stocks.

I have always wondered, but the answer still eludes me- despite being aware of the grave risks, why are people so reckless and foolish with their driving habits? Why are people so reckless and foolish with their investing habits?

If I find the answer, I will surely share with you. But in the meantime, let me reiterate the obvious:

Look for fast returns as per your risk-appetite and with appropriate precautions, and Please desist from taking shortcuts to make quick money.

Murray Stahl Includes Some Risk with His Top Three New Stocks

Murray Stahl founded Horizon Kinetics in 1994 and has held the same philosophy for picking stocks since inception to today. Stahl theorizes that the glut of investors seeking short-term gains in the markets create inefficiencies which long-term investors, like himself, can capitalize on. Both quantitative and qualitative factors of investing matter to him, as he believes investing is at its best when data is combined with historical perspective, social context and fundamental analysis.
Stahl has trailed the markets in the last five years, returning 4.4% cumulatively compared to 12.2% for the S&P 500. His long-term record is better, with a 10-year cumulative return of 81.5% compared to the S&P 500's 16.4%.

Though his fund was down 11% for 2011, Stahl explained in his year-end letter that the companies in his portfolio are unpopular as he believes the market is in a bubble phase. The loss had more to do with the share price of the companies in his portfolio than simply having low intrinsic value or being purchased at an insufficient discount.

"As a group, these companies are quite profitable, maintain liquid balance sheets and are managed by owner-operators. These are highly successful individuals who are typically their companies' largest shareholders and their equity typically represents a large or dominant portion of their personal wealth, such that they have the greatest self-interest in the appreciation of those shares," he writes.

In the fourth quarter, he bought 32 new stocks. The largest new buys are: Air Lease (AL), Colfax (CFX) and Republic Bancorp Inc. (RBCAA).

Air Lease (AL)

Air Lease Corporation is an aircraft leasing company principally engaged in purchasing commercial aircraft and leasing to airlines around the world. Air Lease has a market cap of $2.49 billion; its shares were traded at around $25.22.

Air Lease Corporation went public in April 2011 and traded as high as $29.94 per share, but soon fell to as low as $17.24 per share! in the fourth quarter. Stahl was able to buy 2,242,516 shares at an average price of $22 in the fourth quarter.

Stahl gave a lengthy analysis of Air Lease in his fourth quarter letter:

Air Lease is the second coming of Steven Udvar-Hazy. In 1973, Mr. Udvar-Hazy co-founded what became International Lease Finance Corp. ("ILFC"), and in doing so established a new industry: leasing commercial aircraft to airline companies. He was successful both in concept and execution. ILFC, which is the world's largest aircraft lessor, was sold to American International Group ("AIG") in 1990 for $1.3 billion. Mr. Udvar-Hazy remained CEO of ILFC until 2009, and retired from AIG in February 2010. By April 2011, he had engineered the IPO of a new aircraft lessor, Air Lease, bringing with him ILFC's senior officers, who had worked for him there since 2002.

The basis for this new venture appears to be the reluctance of AIG to invest in the business. The two largest aircraft lessors are owned by diversified financial companies, the 2nd being GE Capital, which, like other major finance companies, is shrinking its balance sheets. Yet, this is occurring at what seems to be an opportune moment to allocate additional capital to the business:

− On a secular basis, airlines continue to increase their use of leasing. The proportion of aircraft fleets leased was about 0% in 1973, about 20% 25 years later in 1998, and 35% 12 years later in 2010. Leasing permits airlines to deploy their insufficient capital elsewhere, to more readily expand and diversify their fleets, and is a particularly helpful mechanism for new, rapidly expanding low-cost airlines such as abound in emerging economies.
− The airline industry is expanding. Historically, passenger traffic has increased on a 1:1 basis with world GDP growth, but most of that growth has been coming from emerging economies. Asia/Pacific traffic, for instance, which was 17% of world traffic in 1990, was 29% in 2010. Therefore, market size exp! ansion in! the next decade should be greater than in the decade prior.
− As mentioned, some of the largest aircraft lessors, like ILFC, are policy constrained with regard to expanding their capital base.
− The cost of capital, which is to say interest rates, has never been as low.

Accordingly, Mr. Udvar-Hazy is entering a market that is growing in overall size, for which penetration of this particular service is also expanding, in which major competitors are constrained, and for which expansion capital is cheap. Certainly, he knows how to build such a business.

The worldwide commercial aircraft inventory is a far more stable figure than one might infer, given the cyclicality in passenger traffic. Inventory has trended up even during downturns, as orders placed during a preceding cyclical upturn in traffic are ultimately delivered. Borrowing from ILFC's financial statements for reference, revenues and earnings of that company increased sequentially between 2005 and 2009, even through the financial crisis and the decline in passenger traffic during 2008 and 2009. Neither, compared with most finance companies, do aircraft lessors use a great deal of leverage; ILFC's debt to equity ratio in 2009 was 3.5x, and its interest coverage ratio was also 3.5x.

Leases are typically net leases, under terms that require the lessee to pay all operating expenses, including insurance and maintenance, and to return the aircraft in a condition that conforms to a detailed set of qualitative criteria.

With $2.2 billion of equity capital raised in the IPO and a prior private placement, and $1.8 billion of borrowings, Air Lease has so far acquired $3.4 billion of planes, which numbered 79 as of September 30th. It has contracted to purchase another 126 aircraft between year-end 2011 and 2015, plus another 95 thereafter. It is in an early expansion phase.

As to valuation, current earnings cannot be used; they are not yet at normalized levels, since the current balance sheet can support a gre! ater amou! nt of operating assets than are yet in place. However, our position was established at only about 5% to 10% above book value and about 20% below the stock's closing price on the day of its IPO last April.

Colfax (CFX)

Colfax Corporation is a global supplier of fluid handling products, including pumps, fluid handling systems and specialty valves. Colfax has a market cap of $1.38 billion; its shares were traded at around $31.66 with a P/E ratio of 24.2 and P/S ratio of 2.6.

Colfax shares actually got pricier in the fourth quarter than they were during the rest of the year. In the last six months, the stock price has advanced 22%. Stahl bought 428,247 shares at an average price of $26 per share in the fourth quarter.

The company is now trading at record high P/B and P/S ratios, and a P/E ratio of 2012.

CFX pe,ps,pb Interactive Chart

After three years of choppy revenue and earnings growth, Colfax's shares went up in the fourth quarter due to its third-quarter results announced on October 27. The company reported a 71.6% year-over-year increase in earnings, a 28% increase in sales and a 53.2% increase in operating income.

The negative effects of the global economic downturn on the company's business began to lessen in mid-2010, when both sales and orders began to improve. The company still expects challenges, though. For instance, one of the company's clients is the U.S. Navy, which is slowing down its spending. It is expecting increased business from countries outside the U.S. as they expand their fleets.

Colfax derived approximately 66% of its sales from operations outside of the U.S. in the year ended Dec. 31, 2010, and it has manufacturing facilities in eight countries. It is aiming to grow its market share in emerging countries. However, the company is subject to fines for selling to countries that are subject to U.S. sanctions or embargoes. For instance, it made sales of $60,000 from 2003 to 2007 to Cuba, for which it is under review b! y the US ! State Department and could face fines or other sanctions. Most of its growth strategy is based on making acquisitions to expand into new markets, and it also plans to enhance its product offerings.

Republic Bancorp Inc. (RBCAA)

Republic Bancorp Inc. has 43 banking centers and is the holding company for Republic Bank & Trust Company and Republic Bank. Almost 50% of its loan portfolio is originating mortgage loans, and 30% is originating commercial real estate loans. The bank is 55% owned by Bernard, Scott and Steven Trager (the chairman, vice chairman and CEO).

Republic Bancorp Inc. has a market cap of $541.3 million; its shares were traded at around $25.83 with a P/E ratio of 5.8 and P/S ratio of 1.7. The dividend yield of Republic Bancorp Inc. stocks is 2.4%. Republic Bancorp Inc. had an annual average earnings growth of 11% over the past 10 years. GuruFocus rated Republic Bancorp Inc. the business predictability rank of 5-star.

Republic Bancorp shares took a distinct turn upward in the fourth quarter. Stahl bought 79,430 shares in the fourth quarter at an average price of $20.59, meaning he got it for under book value, which was $21.59. For much of the rest of the year they sold for under $20. Today the stock closed at $26 per share.

This is only financial company appearing on GuruFocus' Buffett-Munger screener, and it is trading at relatively low valuations.

RBCAA pe,ps,pb Interactive Chart

Many of its financial results are also quite positive. Its revenue has grown at an annual rate of 10% over the last 10 years, and cash flow has grown for each of the last four years. Return on equity is at a record 20.8%, and return on assets is at a record 2.8% for 2011. Earnings also grew each of the last four years.

Republic increased its dividend by 8% in the second quarter of 2011, representing the 12th consecutive year that it has increased its dividend.

A risk involved with the company is that its Republic Bank & Trust business derives 7! 8% of its! net income from TRS, which offers bank products that help get customers who electronically file their tax returns their payments. RB&T is only of the few financial institutions in the U.S. that provide the service. Under the program, the taxpayer may receive a Refund Anticipation Loan (RAL), which has been questioned by various governmental and consumer groups. In May 2011, RB&T received an order to cease and desist which could result in an order by the FDIC to terminate its RAL program. It has a hearing on Feb. 12, 2012 in Kentucky regarding the matter.

From the above holdings, it appears that Stahl is willing to take a small amount of risk into his portfolio. But if the negative events don't come to pass, he could make substantial gains from the stocks. See the rest of Murray Stahl's buys and sells here. Also check out the Undervalued Stocks, Top Growth Companies, and High Yield stocks of Murray Stahl.

Good News for Omeros on OMS302 - Analyst Blog

Good news recently flowed in at Omeros Corporation (OMER) from Europe when the European Medicines Agency (EMA) approved the positive opinion rendered by the European Pediatrics Committee (PDCO) related to the company's pediatric investigation plan (PIP) for its ophthalmology candidate, OMS302.

The approval is one of the preconditions for the submission of the Marketing Authorization Application (MAA) for OMS302. The company plans to submit the MAA to the EMA in mid-2013. The company is looking to get the candidate approved for maintaining intraoperative mydriasis (pupil dilation), prevent surgically induced miosis (pupil constriction) and reducing postoperative pain and irritation due to intraocular lens replacement (ILR) surgery, including cataract surgery and refractive lens exchange.

According to the pediatric investigation plan, Omeros will conduct a study to evaluate the safety and efficacy of OMS302 in patients aged between 13 and 17 years. Omeros will be eligible for an additional six months of patent exclusivity for OMS302 in Europe following the completion of the study (under the PIP). In Europe, currently issued patents related to OMS302 are set to expire in 2023.

Omeros also intends to get OMS302 approved for the above mentioned indication in the US. The company plans to submit the New Drug Application (NDA) to the US Food and Drug Administration (FDA) shortly. Omeros expects to seek US approval for the candidate before the MAA submission. Omeros is planning to seek pediatric exclusivity in the US as well.

Currently, the ophthalmology market is dominated by players like Allergan Inc. (AGN) and Novartis (NVS).

Omeros, a biopharmaceutical company, at present carries a Zacks Rank #4 (Sell). Biopharma stocks such as Jazz Pharmaceuticals (JAZZ), carrying Zacks Rank #1 (Strong Buy), currently look attractive.

AutoNation's June Sales Climb 10% - Analyst Blog

Automotive retailer AutoNation Inc. (AN) posted a 10% year-over-year increase in retail new vehicle sales to 25,162 units in June. The rise was attributable to strong sales in the Domestic segment.

On same-store basis, retail new vehicle sales went up 5% to 24,107 units. June had 26 selling days this year versus 27 selling days last year.

Sales in the Domestic segment increased 15% to 8,130 vehicles. The segment comprises retail automotive franchises that sell vehicles manufactured by Ford Motor Co. (F), Chrysler and others.

Sales in the Import segment went up 8% to 12,460 vehicles. The segment covers retail automotive franchises that sell vehicles manufactured by Toyota Motor Corp. (TM), Honda Motor Co. (HMC) and others.

Sales in the Premium Luxury segment rose 8% to 4,572 vehicles during the month. The segment consists of retail automotive franchises selling vehicles manufactured by Mercedes Benz, BMW, Lexus and others.

AutoNation recorded a 10% increase in new vehicle sales to 22,515 units in Apr and 11% growth to 26,372 units in May. The company registered nearly 10% increase in new vehicle sales to 74,049 units in the second quarter of 2013. Domestic segment sales improved 16%. Import segment sales rose 7% and Premium Luxury segment sales climbed 10% in the quarter.

Auto sales in the U.S. grew 9.2% to 1.40 million units in June, translating into a 13.2% year-over-year rise to a seasonally adjusted annual rate (SAAR) of 15.96 million units, the fastest since Dec 2007. The year-over-year improvement was attributable to the growing popularity of pickups among buyers together with improvements in housing, construction and energy sectors.

In addition, strong pent-up demand, launch of new models, lower interest on auto loans and a resilient economy leading to higher consumer confidence had favorable impacts on the results.

Based in Fort Lauderdale, Fla, AutoNation is the largest automotive retailer in the U.S. The company owns and operates ab! out 266 new vehicle franchises that sell 32 brands located in the major metropolitan markets across 15 states.

AutoNation posted a 21.4% rise in earnings per share to 68 cents in the first quarter of 2013 from 56 cents in the same quarter of 2012, topping the Zacks Consensus Estimate by 5 cents.

Revenues increased 10.8% to $4.1 billion, slightly ahead of the Zacks Consensus Estimate of $4.0 billion. The revenue growth was mainly attributable to strong new vehicle sales during the quarter. The company retains a Zacks Rank #2 (Buy).

July 11: Are Investors Headed for Disappointment? - ...

What did we see in Wednesday's Fed minutes and in the Bernanke speech afterwards that seem to have calmed the markets down? The dollar and treasury yields have eased a bit as a result and stocks are heading back towards new all-time highs.

There was nothing that was substantively new, but both the minutes as well as Bernanke went to great lengths to dial back expectations for the course of monetary policy - as a way to stem the rising tide of long-term interest rates. And as we have been seeing repeatedly over the last couple of weeks, the stock market seems to be liking what it is hearing from the Fed. The bond market still remains skeptical, though it appears to have a paused a bit as well.

The Fed minutes tried to emphasize that the decisions to start 'tapering' and hike Fed Funds rates were distinct and unrelated. In putting this gem of an insight into the minutes, the Fed was trying to make the point that 'tapering' didn't mean tightening. From the Fed's perspective, if they buy $65 billion bonds a month post 'tapering' instead of the current $85 billion, they are still easing.

The bond market and most of the other 'normal' people think otherwise. From the bond-market's perspective, 'tapering' amounted to the first shot in a gradual monetary policy normalization in which the Fed would first end the QE program and then start eying the Fed Funds rate. As a result, the bond market started rates higher, pushing it almost 100 basis points higher in less than two months.

The Fed appears to have been unnerved by the bond market's reaction and is trying its best to control it. Bernanke even went to the extent in his speech yesterday that the Fed could hold off on touching the Fed Funds rate for a very long time even after the unemployment rate fell to 6.5%, which was the Fed's prior target. We will see how all of this unfolds in the coming days and weeks. But at least for now, the stock market doesn't seem to be ov! erly concerned by the jump in treasury yields and has no problem reclaiming its May peak despite substantially higher interest rates.

The stock market's response could be justified on grounds of improved economic growth and corporate earnings outlook. While consensus GDP growth estimates for 2013 Q2 are barely close +1%, the same for the second half of the year and next year show a lot more momentum.

The same picture emerges from consensus earnings estimates for the second half of the year. While total earnings growth is expected to be barely in the positive territory in Q2, they are expected jump by more than +5% in Q3 and more than +11% in Q4. For full year 2014, total earnings are expected to be up an additional +11.5%. We haven't heard much positive guidance for the coming quarters from the companies that have already reported Q2 results like Oracle (ORCL), FedEx (FDX), Accenture (ACN) and others. Financial firms typically don't provide forward guidance, but it will be interesting to see how J.P. Morgan (JPM) and Wells Fargo (WFC) dealt with the sudden spike in interest rates in Q2. Both these banking leaders report before the open tomorrow.

But if recent history is any guide, then we should brace ourselves for another round of predominantly negative guidance this earnings season as well, causing estimates for Q3 and Q4 to start coming down. This trend has played out repeatedly over the last few quarters, with investors essentially shrugging negative estimate revisions each time. Market bulls believe that we will get a repeat performance this time around as well, with the stock market not losing even beat as estimates for the second half of the year and next year come down. May be the bulls are right and nothing will happen.

But forgive me for being a bit skeptical of these soothing voices. My sense is that the stock market is disregarding the jump in treasury yields because it is looking for strong earnings growth in the coming quarters. But earnings grow! th can'! t miraculously appear in the back half of the year or next year. With margins already at historical highs and revenue growth hard to come by in a growth-constrained world, double-digit earnings growth may firmly be in the rearview mirror. Investors bidding up stocks in hopes of strong earnings growth in the coming quarters are heading towards a disappointment.

ACE Worldview Now for ARM Clients - Analyst Blog

Recently, the retail unit of ACE Limited's (ACE) ACE Group – ACE USA has taken a step to expand its web-based desktop portal, ACE Worldview. Through the expansion, the platform, which mainly caters to multinational risk managers and their brokers, will now be available to the clients and brokers of ACE Risk Management (ARM). ACE Risk Management is a segment of ACE USA that provides risk management services to companies that have to deal with high financing expenses and risks associated with them.

ACE Worldview is tailored to help risk managers and brokers manage the various demands encountered by them. It enhances the efficiency of electronic delivery of policies and endorsements and thus provides clients with immediate access to information, reviews and updates pertaining to their U.S. domestic primary casualty programs. With the extension of this technology to ARM, this interactive portal will now enable ARM clients direct control over hefty and complex primary casualty programs, multiple policies and recent or imminent deals.

The new ACE Worldview for ARM will help ACE Risk Management to issue policies and endorsements using the electronic mode, ACE Worldview portal, thus making delivery of coverage information more efficient. It will also serve as an electronic library that would store all policies, endorsements, notifications, collateral agreements and captive reinsurance agreements, and help users review and verify premium audit adjustments. Moreover, it will serve as a service center whereby clients can submit service requests and the system will track, monitor and display updates. Thus ACE Risk Management will now be able to cater to its clients better and retain client confidence.

ACE is a company that prefers investing in technologies that boost its risk management capabilities and enhance customer satisfaction. The above expansion was one such endeavor. We expect the extension of the technology to ARM business to help the company augment its primary cas! ualty line of business thereby strengthening its competitive position in the market.

ACE currently carries a Zacks Rank #3 (Hold). Among other insurers, American Safety Insurance Holdings Ltd. (ASI), Catlin Group Limited (CLNGF) and Hilltop Holdings Inc. (HTH) carry a favorable Zacks Rank #1 (Strong Buy) and appear impressive.

Where Do The Bears Go Next With St. Jude Medical?

In a sell-side world where Underperform/Sell ratings are pretty rare, is a bit of exception, as several analysts have either recommended that investors sell St. Jude Medical (NYSE:STJ) or have issued what I'd call "neutral … but we really mean sell" calls. Many of these analysts believe that St. Jude is going to see serious share loss in cardiac rhythm management (pacemakers and ICDs) due to safety problems with the leads, but that just hasn't happened. But with CRM revenue holding up, they're increasingly turning to worrying about earnings quality and long-term growth potential.

Although I think St. Jude shares have gotten a little expensive, I think the bears are going to have to work harder to make their case. Simply put, while St. Jude isn't even close to the most dynamic name in med-tech, it's doing better than the bears want to acknowledge. So although I expect another round of attempts to talk down the numbers/performance, I still see more opportunities for the company to do better in the coming years.

SEE: A Checklist For Successful Medical Technology Investment

Q2 Results Not Great, But More Than Good Enough
Much as the bears who believe St. Jude's problems with its leads should be leading to steep share loss won't like it, it's just not happening yet. In fact, St. Jude delivered a pretty decent set of results in a difficult market.

Revenue was down slightly as reported (less than 1%), but up about 2% in constant currency terms, good for a 3% beat relative to sell-side estimates. CRM revenue declined 2%, but that was 5% better than expected and St. Jude topped the high end of its own guidance range by about 3%. ICD revenue was flat, while pacing revenue was down 6%, but St. Jude showed the first quarter of growth in U.S. ICDs in about three years.

Elsewhere, the results were mediocre. Cardiology revenue growth of 3% was okay, and 12% growth in atrial fibrillation was better than expected, but not as good as Johnson & Johnson's (NYSE:JNJ) 16% growth for the quarter. Neuromodulation still remains pretty sluggish with just 2% growth. It's worth noting that while I call these results mediocre, every business was notably stronger (on a yoy growth basis) than in the first quarter.

SEE: Abbott Labs Making Progress On Margins, Now It Needs More Growth

St. Jude likewise had mixed results in the margins – better than expected, but not great in absolute terms. Gross margin declined 110bp, but was slightly better than expected by the sell-side. Operating income declined 3% (1% better than expected), but operating margin declined about 80bp. I expect that bears will highlight the higher-than-expected spending in SG&A and try to make the case that the CRM growth was a byproduct of that SG&A spend (which may, or may not, be the case).

What Do Recent FDA Approvals Tell Us About The Lead Issue?
St. Jude does indeed have serious issues relating to old CRM leads, and the company is operating under FDA warning letters. Yet the FDA still approved the Ellipse ICD and Assura ICD in June (and they're manufactured at the facility covered by the warning letter). Both of these devices mitigate the risk of defective leads (they adjust the shock if there's a short in a lead and they have coatings that reduce lead friction) and that may be why the FDA approved them, but it's hard for me to reconcile the FDA giving the go-ahead to these products with the idea that St. Jude isn't making progress resolving its legacy lead issues.

What's The Future Worth?
We really won't know a lot about how St. Jude is faring in CRM under Boston Scientific (NYSE:BSX) reports earnings, but I expect that Medtronic (NYSE: MDT) will still be a share-gainer. My hope, though, is that the CRM business is growing again on an industry-wide basis.

That doesn't resolve some of the longer-term questions about St. Jude. On one hand, bears think that St. Jude is unlikely to make much impact against Edwards (NYSE:EW) and Medtronic in transcatheter heart valves (with its Portico valve), and likewise is going to be out-competed by Medtronic, Covidien (NYSE:COV), and maybe BSX and JNJ in renal denervation. I still maintain that St. Jude will do better than expected – not enough to lead any of these markets, but enough to offer upside to the long-term growth estimates.

Likewise, I think St. Jude is under-appreciated for the other growth opportunities it is accumulating. An investment in Spinal Modulation could give it access to a differentiated spinal cord stimulation platform, and I likewise think that CardioMEMS and a leadless pacemaker offer some long-term upside if they work out.

The Bottom Line
While I feel like I often come to St. Jude's defense, I'm not a huge bull on the stock today. With a long-term revenue growth rate of about 4% and a free cash flow growth rate slightly higher, St. Jude would seem to be worth about $45 after subtracting the company's net debt (which many analysts seem to ignore).

For the stock to be really interesting today (a fair value of $55 or higher), you have to go up to about 7% or 8% long-term cash flow growth and that seems a bit ambitious. Consequently, I think St. Jude is a respectable hold today, but not a particularly interesting destination for new money unless you believe that St. Jude will grow dramatically faster than its analysts believe, not to mention quite a bit faster than most of its larger med-tech peers.

Is Wal-Mart Still a Steady Winner?

With shares of Wal-Mart Stores Inc. (NYSE:WMT) trading at around $77.40, is WMT an OUTPERFORM, WAIT AND SEE or STAY AWAY? Let's analyze the stock with the relevant sections of our CHEAT SHEET investing framework:

C = Catalyst for the Stock's Movement

Positives for Wal-Mart include strong cash flow, a generous 2.40 percent yield, consistent share buybacks, stock resiliency in bear markets, consistent stock performance, steadily increasing revenue on an annual basis, international sales growth, and fair valuation – the stock is currently trading at 15 times earnings.

NEW! Discover a new stock idea each week for less than the cost of 1 trade. CLICK HERE for your Weekly Stock Cheat Sheets NOW!

Q1 EPS came in at $1.14, which was a 4.6 percent increase year-over-year. Wal-Mart's Q1 comps declined 1.4 percent. The following reasons were given for the comps decline:

Delay in tax refund checks Challenging weather conditions Less grocery inflation than expected Payroll tax increase

CEO Mike Duke stated:

“In a quarter marked by considerable headwinds to top line sales, Walmart delivered solid EPS growth of 4.6 percent. Walmart’s mission is simple and focused — to help people save money so they can live better. When we simplify and focus our execution against this mission, it’s easy for our associates to prioritize what they have to do to serve our customers.

I’m confident about our long-term strategy and the direction Walmart is headed. Our expectations about our U.S. businesses’ performance, coupled with more discipline in International, will allow us to improve our performance throughout the year.

There is no doubt that our company is making the right investments in e-commerce to differentiate ourselves and become a better Walmart. And with our sales growth in the first quarter, we believe our investments are paying off.”

Q2 EPS is expected to come in between $1.22 and $1.27 compared to $1.18 for Q2 in 2012. Q2 comps for Wal-Mart are expected to be flat to 2 percent. Q2 comps for Sam's Club are expected to come in between 1 percent and 3 percent.

Wal-Mart is attempting to increase its online presence. According to Alexa.com, it currently has a global traffic rank of 181, and a United States traffic rank of 41. Over the past three months, pageviews-per-user has declined 12.32 percent, time-on-site has declined 11 percent, and the bounce rate (only one page per view) has increased 12 percent. Needless to say, Wal-Mart needs to make online improvements.

Below is a chart comparing fundamentals for Wal-Mart, Costco Wholesale Corporation (NASDAQ:COST), and Target Corp. (NYSE:TGT).

	WMT	COST	TGT
Trailing P/E	15.24	25.26	15.67
Forward P/E	13.17	22.32	12.79
Profit Margin	3.62%	1.90%	4.09%
ROE	23.62%	17.33%	18.52%
Operating Cash Flow	25.05B	3.34B	5.32B
Dividend Yield	2.40%	1.10%	2.00%
Short Position	1.70%	1.30%	2.90%

Let's take a look at some more important numbers prior to forming an opinion on this stock.

T = Technicals Are Mixed

Wal-Mart has underperformed its peers over the past year. However, investors aren’t looking for substantial gains in Wal-Mart. They’re looking for slow and steady while also collecting dividends.

At $77.40, Wal-Mart is trading below its 50-day SMA, but above its 200-day SMA.

	1 Month	Year-To-Date	1 Year	3 Year
WMT	-0.40%	15.02%	27.08%	62.87%
COST	8.55%	15.15%	48.11%	121.8%
TGT	3.07%	20.95%	30.54%	43.06%

50-Day SMA	78.03
200-Day SMA	72.68

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E = Equity to Debt Ratio Is Normal

The debt-to-equity ratio for Wal-Mart is close to the industry average of 0.70.

	Debt-To-Equity	Cash	Long-Term Debt
WMT	0.75	8.86B	57.08B
COST	0.47	5.65B	4.87B
TGT	1.07	788.00M	17.65B

E = Earnings Are Steady

Earnings and revenue have consistently improved on an annual basis.

Q1 EPS was $1.14 on $114.2 billion in revenue. Both were year-over-year improvements.

Fiscal Year	2009	2010	2011	2012	2013
Revenue ($) in millions	405,607	408,214	421,849	446,950	469,162
Diluted EPS ($)	3.39	3.70	4.47	4.52	5.02

Quarter	Apr. 30, 2012	Jul. 31, 2012	Oct. 31, 2012	Jan. 31, 2013
Revenue ($) in millions	113,018	114,296	113,929	127,919
Diluted EPS ($)	1.09	1.18	1.08	1.67

Now let's take a look at the next page for the Trends and Conclusion. Is this stock an OUTPERFORM, a WAIT AND SEE, or a STAY AWAY?

T = Trends Support the Industry                         

Wal-Mart is always well-positioned. Those loyal to Wal-Mart will shop there in any economic environment. When the consumer weakens, many middle-income consumers will switch to Wal-Mart. This has been proven in the past. While online retailers are a threat, the biggest threat is the dollar store.

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Conclusion

Many stocks have recently been rated OUTPERFORM here due to momentum. However, many of those trends aren't sustainable. Wal-Mart, on the other hand, is a long-term OUTPERFORM.

Top 5 Undervalued Stocks To Buy Right Now

Source: CONSOL Energy�

CONSOL Energy (NYSE: CNX  ) is having a bit of an identity crisis. The company can't decide if it's a coal company or a natural gas company. It's also not very fond of the value investors have placed on its stock, because investors apparently don't know how to identify CONSOL. Because of this, one thing has become is clear: CONSOL doesn't like the direction it's heading, which means that big changes could be on the horizon.

CONSOL's biggest issue is that it doesn't feel that it's getting the respect it deserves. The company believes that its assets are being undervalued by the market, and it's looking at ways to boost that value. According to CEO Brett Harvey, "everything's on the table" including a breakup of the company.

Top 5 Undervalued Stocks To Buy Right Now: Tupperware Corporation(TUP)

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

Advisors' Opinion:

• [By Sam Collins]

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

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

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

Top 5 Undervalued Stocks To Buy Right Now: Caterpillar Inc.(CAT)

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

Advisors' Opinion:

• [By Roberto Pedone]

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

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

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

• [By Ben Levisohn]

  For one day at least, this CAT is not a dog.

  Caterpillar (CAT) has gained 2% to $86.22 today, its largest gain since in a month and the largest gain among the Dow components. The machinery manufacturer has dropped 11% during the past six months, however, as a slowdown in China and cost-cutting at mining companies have hit its shares.

  Bloomberg

  Susquehanna’s Ted Grace offers reasons for optimism, even as he lowers his 12-month price target to $97 from $104:

  CAT remains Positive rated with 15% upside to our $97 price target and upside-downside of 1.2-to-1 (which, like most of our machinery names, is admittedly shy of the 2-to-1 or better ratio we prefer). Despite our 2014-15 EPS being ~6% below consensus, we view our updated estimates as closer to buyside expectations while noting that consensus appears to embed a low tax rate that explains over half of the variance. While there remains plenty of uncertainty on 2014/15, particularly in mining, we believe CAT shares currently discount reasonable top-line expectations while recent meetings with mgmt suggest potential for structural cost savings that could drive better than expected margins/ incrementals. While difficult to identify discernible catalysts, if CAT’s framework for flat-to-better RI revenue growth in 2014 proves correct (admittedly not assumed in our estimates), this would almost certainly debunk the core of the bear thesis and be meaningfully positive for shares.

  Investors waiting for the stock to actually, you know, rise can take comfort in Caterpillar’s $2.40 dividend per share and its more than $3 per share in buybacks in 2013, Grace says.

  Caterpillar’s 2% gain has trumped the Dow Jones Industrial Average’s 0.04% rise, and United Technology’s (UTX) 0.1% drop, while competitor Deere (DE) has gained 1.9% to $83.22.

• [By Jim Cramer,TheStreet]

  Caterpillar (CAT) could be a monster in 2011, especially with the integration of Bucyrus International (BUCY), which I think will turn out to be a fantastic acquisition.

  Current earnings-per-share estimates of about $6 are, I think, way too low. I see this stock going to $120 in the next year. Too gutsy? Ask yourself what happens if the United States comes back as a growth nation? Right now almost all of the growth is overseas.

  Still a fantastic mineral play and a terrific call on world growth.

Top 10 Oil Companies To Watch For 2014: Dollar Tree Inc.(DLTR)

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

Advisors' Opinion:

• [By Sam Collins]

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

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

Top 5 Undervalued Stocks To Buy Right Now: Schlumberger N.V.(SLB)

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

Advisors' Opinion:

• [By Kathy Kristof]

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

• [By Brian Stoffel]

  This company has been a pick of both Jordan DiPietro and Bryan White. And both analysts have pointed to the company's opportunity for oil exploration abroad -- which is where much of the demand will soon be coming from as well.

  Bryan points out that three-fourths of the company's revenue comes from abroad, with "Brazil, the Middle East, and Africa [as] key regions where activity is expected to be robust and growing."

  Jordan adds, "[Schlumberger] has an important presence in high-growth regions of the world such as Iraq, Mexico, and Russia, and has the competitive advantage to be able to offer full services, from managing entire oil fields to drilling wells."

• [By Rebecca Lipman]

   Together with its subsidiaries, supplies technology, integrated project management, and information solutions to the oil and gas exploration and production industries worldwide. Market cap of $91.49B. EPS growth (5-year CAGR) at 24%. According to Morgan Stanley: "Thanks to an estimated $1 billion investment per year in R&D, Schlumberger has what we consider the most advanced technology portfolio in the industry."

BlackBerry Finally Looking For A Bidder, But Will A Real Buyer Bite?

It looks like an outbreak of rationality has hit BlackBerry (Nasdaq:BBRY), as the company announced on Monday that it had formed a special committee to "explore strategic alternatives" for the struggling handset company. While the company's announcement mentioned options like joint ventures, partnerships, and alliances, shareholders, analysts, and investors are are zeroing in almost exclusively on the possibility of a sale.

If BlackBerry is serious about a sale, it'll happen. I have no doubt that, at the right price, the company can find a buyer willing to take on the not-inconsiderable task of turning around this struggling high-end handset company. The trick is going to be that "at the right price" part. BlackBerry's enterprise value (that is, market capitalization net of cash and debt on the balance sheet) isn't very large, but any buyer is looking at a likely multi-year restructuring/turnaround program that will require capital, compress margins, and offer only uncertain payoffs.

SEE: Why Public Companies Go Private

Forget "Why Now?", Why Not Sooner?
There isn't an especially glorious history of growth-by-acquisition in the mobile space, as ventures like Sony Ericsson haven't really accomplished all that much. Still, I have to wonder why BlackBerry waited so long to openly consider a sale of the company, as Amazon (Nasdaq:AMZN) was reportedly interested back in 2011 – a time when not only was the Blackberry share price 4x higher, but the business as in considerably better shape.

Now the acquisition of the company looks hardly better than buying a second-hand goldfish. Although revenue was up in the most recent quarter, unit sales were down 13%, the BB10 appears to be on a disappointing launch trajectory and the news about subs has gotten bad enough that the company no longer wants to talk about it with investors.

Making matters worse, what BlackBerry does best (high-end handsets) is looking increasingly less valuable as investors and analysts begin to openly debate the risks that the high-end handset market has peaked. With BlackBerry already out of the top 5 and the company offering a weak apps ecosystem compared to Apple (Nasdaq:AAPL) and Google's (Nasdaq:GOOG) Android, a willingness to sell may have come too late for shareholders to get anything close to top dollar.

Lining Up The Suitors
With earnings season over, you can bet that there will be no shortage of rumors and sell-side reports trying to handicap the potential bidders for BlackBerry. To start with, private equity could very likely play a role – more than one Canada-based investor has declared a willingness or interest to participate, and the company's cash flow streams (even if they are at risk) could appeal to a PE buyer.

Looking at strategic buyers, Amazon is probably the first name on the list. BlackBerry would supposedly prefer to be acquired by a "Google-like" buyer, and Amazon would be the most likely name on the list. There have been rumors for years about Amazon getting into the handset space, and BlackBerry would certain complement and enhance the distribution possibilities of Amazon's existing tablet business. Amazon could also improve the app ecosystem almost overnight, and BlackBerry actually could enhance both Amazon's cloud assets and gross margins.

SEE: A Primer On Investing In The Tech Industry

After Amazon, it gets foggier. Microsoft (Nasdaq:MSFT) could be a candidate, particularly since management cannot control Nokia's (NYSE:NOK) restructuring efforts and there could be synergies with Microsoft's enterprise software and cloud businesses. On the other hands, the agreement with Nokia is long term in nature and I think there would be a shareholder revolt if Microsoft acquired a struggling player like BlackBerry.

Other companies that have already been prominently mentioned as suitors include Facebook (NYSE:FB), Huawei, Apple, and Google. I'll dismiss Apple and Google right away – there could be some appeal to BBRY's IP, its international distribution, and the ability to use cash locked away overseas, but I don't see the value of those pluses outweighing the cost and risks. With Huawei, it's anybody's guess – they definitely want to move up-market, and they have the resources to do the deal if they want. Last and not least, I think Facebook is an unlikely buyer as well – Facebook may want to monetize its mobile base, but management finally has the business looking good again and I don't know why management would think it can fix BlackBerry (apart from potential hubris).

Last and not least, I'm going to throw out Lenovo (Nasdaq:LNVGY) as a potential suitor. I know Lenovo is usually excluded as a bidder because of the amount of capital it would take to buy BlackBerry, but the two companies' global distribution systems could be quite synergistic, Lenovo wants to enter the North American handset market, and Lenovo understands better than most how to thrive in a business with serious margin pressure. All things considered, I don't think Lenovo does it (unless they can get a bargain-bin price), but I think they're a more credible contender than commonly believed.

The Bottom Line
Investors hoping for a Motorola Mobility-like purchase price are likely to be disappointed, as BlackBerry lacks the IP, tax loss, and divestable non-handset businesses that made Motorola workable to Google even at a headline price of over $12 billion. Moreover, as the drawn-out process of trying to sell Dell (Nasdaq:DELL) has shown, selling a struggling consumer/tech business can take a while. Nevertheless, management's willingness to sell now may very well give investors the best chance of maximizing their stake in this handset company.

Disclosure – At the time of writing, the author did not own shares of any company mentioned in this article.

Supreme Court Backs Mandatory Arbitration; NASAA Calls for Action

State securities regulators are up in arms over the Supreme Court’s recent decision upholding American Express’ right to bar customer class-action suits and are pressing Congress to stop forced arbitrations.

The Supreme Court on June 20 issued its opinion in American Express Co. v. Italian Colors Restaurant, which held that a group of merchants were bound by individual arbitration agreements with American Express "even if a class action is the only way to make the claim economically viable," NASAA says.

According to The Washington Post, a group of California restaurants led by Italian Colors had a dispute with American Express, over fees and other matters, from which each restaurant hoped to recover $40,000 or less. But the analysis necessary to prove their case would have cost the restaurants up to $1 million.

“The Supreme Court’s ruling effectively invites large corporations to use arbitration agreements to disregard effective vindication of consumer claims through class actions,” said Heath Abshure (right), NASAA President and Arkansas securities commissioner, in a statement.

“It is disappointing that the Supreme Court would turn a blind eye to the injustice of allowing large corporate interests to deny small businesses and individuals their day in court,” Abshure said. “It is now up to Congress to restore some vestige of consumer protection by prompt remedial legislation to restore the scales of justice to balance.”

In a 5-3 opinion by Justice Antonin Scalia, the Court held that a contractual provision mandating individual arbitration by means of a class-action waiver is enforceable under the Federal Arbitration Act (FAA), even if the costs of individual arbitration outweigh the potential recovery, according to attorneys Michael Miller and Adam Hunt of the law firm Morrison Foerster.

“Plaintiffs had argued that the costs of individual arbitration were so high that they would not be able to ‘effectively vindicate’ their federal statutory rights under the antitrust laws,” the two lawyers say. “But the Supreme Court shut the door on plaintiffs’ repeated efforts to push for the application of this ‘effective vindication’ exception that had been crafted by lower courts (including those in the Second Circuit).”

NASAA notes that it has been urging Congress to explore amending federal law to ensure that all investors, especially those investing small amounts, have a reasonable avenue to seek recovery.

“Arbitration should not be the sole forum available to aggrieved investors," Abshure said. "They should be able to seek relief in any forum and not be forced into an expensive arbitration that could foreclose the ability to obtain relief.”

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Check out Schwab Backs Off on Class-Action Ban—for Now on AdvisorOne.

10 Best Oil Stocks To Invest In Right Now

Here in North America, the F-150 pickup and its Super Duty siblings are Ford's (NYSE: F  ) bread and butter -- and they've been posting big sales gains lately, thanks to surges in the construction and oil markets. Now, a related segment -- commercial vans -- is showing signs of heating up, and Ford's small Transit Connect is posting big gains as well.

But sales of Ford's mainstay E-Series van have actually dropped lately. In this video, Fool.com contributor John Rosevear looks at the important commercial van market -- and at Ford's surprising plan to replace its familiar old Econoline with a very different product.

Ford's global product strategy is just one of several good reasons to think that the Blue Oval still has big growth opportunities ahead. The Fool's premium Ford research service gives you freshly updated guidance to those opportunities and Ford's prospects in coming years. Click here�to get started now.

10 Best Oil Stocks To Invest In Right Now: Imperial Oil Limited(IMO)

Imperial Oil Limited engages in the exploration, production, and sale of crude oil and natural gas in Canada. The company operates through three segments: Upstream, Downstream, and Chemical. The Upstream segment engages in the exploration and production of conventional crude oil, natural gas, synthetic oil, and bitumen primarily in the Western Provinces, the Canada Lands, and the Atlantic Offshore. Its primary conventional oil producing asset includes the Norman Wells oil field in the Northwest Territories. The Downstream segment engages in the transportation and refining of crude oil, as well as blending, distribution, and marketing of refined products. It owns and operates crude oil, and natural gas liquids and products pipelines in Alberta, Manitoba, and Ontario. The Chemical segment engages in the manufacture and marketing of various petrochemicals, including ethylene, benzene, aromatic and aliphatic solvents, plasticizer intermediates, and polyethylene resin. As of De cember 31, 2010, Imperial Oil Limited had 1,204 million oil-equivalent barrels of proved undeveloped reserves; maintained a nation-wide distribution system, including 24 primary terminals, to handle bulk and packaged petroleum products moving from refineries to market by pipeline, tanker, rail, and road transport; and sold petroleum products through 1,850 Esso retail service stations, of which approximately 510 were company owned or leased. The company was founded in 1880 and is headquartered in Calgary, Canada. Imperial Oil Limited operates as a subsidiary of Exxon Mobil Corporation.

10 Best Oil Stocks To Invest In Right Now: Range Resources Corporation(RRC)

Range Resources Corporation, an independent natural gas company, engages in the acquisition, exploration, and development of natural gas properties primarily in the Appalachian and southwestern regions of the United States. The company?s Appalachian region drilling and producing activities include tight-gas, shale, coal bed methane, and conventional natural gas and oil production in Pennsylvania, Virginia, Ohio, and West Virginia. It owns 4,969 net producing wells, approximately 2,750 miles of gas gathering lines, and approximately 1.8 million gross acres under lease. The company?s Southwestern drilling and producing activities cover the Barnett Shale of North Texas, the Permian Basin of West Texas and eastern New Mexico, the East Texas Basin, the Texas Panhandle, and the Anadarko Basin of Western Oklahoma. It owns 1,954 net producing wells, as well as approximately 886,000 gross acres under lease. As of December 31, 2010, Range Resources Corporation had had 4.4 Tcfe of pr oved reserves. It sells gas to utilities, marketing companies, and industrial users. The company was formerly known as Lomak Petroleum, Inc. and changed its name to Range Resources Corporation in 1998. Range Resources Corporation was founded in 1975 and is headquartered in Fort Worth, Texas.

Advisors' Opinion:

• [By Louis Navellier]

  Range Resources Corp. (NYSE:RRC) is an independent natural gas and oil company that explores, develops and acquires primarily natural gas and oil properties in the U.S. This is another stock that is up big, gaining 46% year to date.

• [By CRWE]

  RANGE RESOURCES CORPORATION (NYSE:RRC) reported that its Board of Directors declared a quarterly cash dividend on its common stock. A dividend of $0.04 per common share is payable on June 29, 2012 to stockholders of record at the close of business on June 15, 2012.

Top Tech Stocks To Buy Right Now: Apache Corporation(APA)

Apache Corporation, together with its subsidiaries, engages in the exploration, development, and production of natural gas, crude oil, and natural gas liquids. The company has exploration and production interests in the Gulf of Mexico, the Gulf Coast, east Texas, the Permian basin, the Anadarko basin, and the Western Sedimentary basin of Canada; and onshore Egypt, offshore Western Australia, offshore the United Kingdom in the North Sea, and onshore Argentina, as well as on the Chilean side of the island of Tierra del Fuego. Apache Corporation sells its natural gas to local distribution companies, utilities, end-users, integrated oil and gas companies, and marketers; and crude oil to integrated oil companies, marketing and transportation companies, and refiners. As of December 31, 2009, it had total estimated proved reserves of 1,067 million barrels of crude oil, condensate, and natural gas liquids, as well as 7.8 trillion cubic feet of natural gas. The company was founded in 1954 and is based in Houston, Texas.

Advisors' Opinion:

• [By Dennis Slothower]

  Apache Corp. (NYSE:APA): Down 1.15% to $82.73. Apache Corporation is an independent energy company. The Company explores for, develops, and produces natural gas, crude oil, and natural gas liquids. The Company has operations in North America, onshore Egypt, offshore Western Australia, offshore the United Kingdom in the North Sea (North Sea), and onshore Argentina, as well as on the Chilean side of the island of Tierra del Fuego.

10 Best Oil Stocks To Invest In Right Now: El Paso Corporation(EP)

El Paso Corporation operates in the natural gas transmission, and exploration and production sectors of the energy industry primarily in the United States. It offers natural gas transmission services to a range of customers, including natural gas producers, marketers, and end-users, as well as other natural gas transmission, distribution, and electric generation companies through its interests in approximately 43,100 miles of interstate pipeline system. The company also operates approximately 240 billion cubic feet of storage capacity, and an LNG receiving terminal in Elba Island, Georgia. In addition, El Paso Corporation focuses on the exploration, acquisition, development, and production of natural gas, oil, and natural gas liquids in the United States, Brazil, and Egypt, as well as engages in midstream business. The company primarily sells its domestic natural gas and oil to third parties. As of December 31, 2010, it had proved natural gas and oil reserves of approximat ely 3.4 trillion cubic feet of natural gas equivalents. The company was founded in 1928 and is based in Houston, Texas.

Advisors' Opinion:

• [By Ken Sweet]

  Shares of El Paso Corp. (EP), owner of the nation's largest natural gas pipeline network, got a boost from increased investor interest in natural gas and stronger-than-expected earnings.

  The company recently raised its full-year guidance to between $1and $1.10 a share, citing higher oil and gas prices.

  Investors also responded positively to El Paso's decision last month to spin off its natural gas exploration and production division into a separate company, allowing El Paso to focus solely on its pipeline, transportation and distribution businesses.

10 Best Oil Stocks To Invest In Right Now: Devon Energy Corporation(DVN)

Devon Energy Corporation, together with its subsidiaries, engages in the acquisition, exploration, development, and production of natural gas and oil in the United States and Canada. It also involves in transporting oil, gas, and natural gas liquids (NGL); and processing natural gas. The company owns oil and gas properties in the mid-continent area of the central and southern United States; the Permian Basin in Texas and New Mexico; the Rocky Mountains area of the United States; and the onshore areas of the Gulf Coast, principally in south Texas and south Louisiana. It also owns oil and gas properties in the provinces of Alberta, British Columbia, and Saskatchewan, Canada. In addition, the company offers marketing and midstream services, including marketing of gas, crude oil, and NGL, as well as constructing and operating pipelines, storage and treating facilities, and natural gas processing plants. As of December 31, 2010, it had 2,042 million barrel of oil equivalent of proved developed reserves. The company sells its gas production to various customers, such as pipelines, utilities, gas marketing firms, industrial users, and local distribution companies; crude oil production to refiners, remarketers, and other companies; and NGL production to customers in petrochemical, refining, and heavy oil blending activities. Devon Energy Corporation was founded in 1971 and is headquartered in Oklahoma City, Oklahoma.

Advisors' Opinion:

• [By CRWE]

  Devon Energy Corporation (NYSE:DVN) reported that its management will present at the UBS Global Oil & Gas Conference in Austin, Texas on Wednesday, May 23, 2012, at 11:20 a.m. Central Time (12:20 p.m. Eastern Time).

• [By McWillams]

  Oklahoma-based Devon Energy(DVN) is an analyst favorite, receiving 21 "buy" ratings and nine "hold" calls, but no "sell" rankings.

  Devon explores for and produces natural gas and oil. Its stock has run up 33% in the past three months, fulfilling Jefferies' thesis. Now, it has just 3% of upside before passing the bank's price target. It might be best to wait for a pullback before buying Devon. But, most-bullish Macquarie, an Australian investment bank with a focus on energy companies, expects Devon's stock to advance another 14% to $98 in 12 months.

  Devon's business is largely focused on natural gas, with two-thirds of sales from that commodity and the other third coming from oil and natural gas liquids. It also owns gas pipelines and treatment facilities.

  Natural gas is domestically abundant. In fact, some geologists estimate that North America houses the richest natural gas deposits. For this reason, businessmen, such as T. Boone Pickens, think using this resource is critical to energy independence.

  The downside is that recent shale discoveries have expanded supply and dampened the commodity's pricing. Devon has been repositioning itself as an onshore North America gas company. Consequently, it has been divesting international assets and using the proceeds to lessen its float. In the third quarter, shares outstanding dropped 3% to 432 million.

10 Best Oil Stocks To Invest In Right Now: New Concept Energy Inc (GBR)

New Concept Energy, Inc. (New Concept), incorporated on May 30, 1991 in, owns and operates oil and gas wells in Ohio and West Virginia. The Company, through its wholly owned subsidiaries Mountaineer State Energy, Inc. and Mountaineer State Operations, LLC. operates oil and gas wells and mineral leases in Athens and Meigs Counties in Ohio and in Calhoun, Jackson and Roane Counties in West Virginia. As of March 30, 2012, the Company had 159 producing gas wells, 27 non-producing wells and related equipment and mineral leases covering approximately 20,000 acres. The Company operates in two primary business segments: oil and gas operations and retirement facilities.

During the year ended December 31, 2011, the Company had drilled eight wells. New Concept focuses on North American onshore oil and natural gas drilling and exploration. The Company's properties are concentrated in the Appalachian Basin, Fort Worth Basin, and the Arkoma Basin. The Company leases and operates Pacific Pointe Retirement Inn (Pacific Pointe) in King City, Oregon. Pacific Pointe has a capacity of 114 residents and provides community living with basic services, such as meals, housekeeping, laundry, 24/7 staffing, transportation and social and recreational activities.

10 Best Oil Stocks To Invest In Right Now: Shell Refining Company (SHELL)

Shell Refining Company (Federation of Malaya) Berhad is principally engaged in refining and manufacturing of petroleum products. The Company operates primarily in Malaysia. Its operations also include the gas to liquids (GTL) plant of its kind in Bintulu, Sarawak, and a refinery in Port Dickson, Negeri Sembilan. Its upstream operations focus on the development and extraction of crude oil and natural gas offshore Sarawak and Sabah. In downstream its main activity is in refining, supply, trading and shipping of crude oil and petroleum products through the sales and marketing of transportation fuels, lubricants, specialty products and technical services. The Company is also a partner in two joint ventures that convert natural gas to liquefied natural gas. Royal Dutch Shell plc is its holding company.

10 Best Oil Stocks To Invest In Right Now: ONEOK Partners L.P.(OKS)

ONEOK Partners, L.P. engages in the gathering, processing, storage, and transportation of natural gas in the United States. The company?s Natural Gas Gathering and Processing segment gathers and processes natural gas produced from crude oil and natural gas wells located in the Mid-Continent region; and gathers natural gas in the Williston Basin, which spans portions of Montana and North Dakota, and the Powder River Basin of Wyoming. Its Natural Gas Pipelines segment primarily owns and operates regulated natural gas transmission pipelines, natural gas storage facilities, and natural gas gathering systems for non-processed gas. It also provides interstate natural gas transportation and storage services. This segment?s interstate natural gas pipeline assets transport natural gas through FERC-regulated interstate natural gas pipelines in North Dakota, Minnesota, Wisconsin, Illinois, Indiana, Kentucky, Tennessee, Oklahoma, Texas, and New Mexico. In addition, it transports intra state natural gas through its assets in Oklahoma; and owns underground natural gas storage facilities in Oklahoma, Kansas, and Texas. Its Natural Gas Liquids segment gathers, fractionates, and treats natural gas liquids (NGLs), as well as stores NGL products primarily in Oklahoma, Kansas, and Texas. This segment owns FERC-regulated natural gas liquids gathering and distribution pipelines in Oklahoma, Kansas, Texas, Wyoming, and Colorado; terminal and storage facilities in Missouri, Nebraska, Iowa, and Illinois; and FERC-regulated natural gas liquids distribution and refined petroleum products pipelines in Kansas, Missouri, Nebraska, Iowa, Illinois, and Indiana that connect its Mid-Continent assets with Midwest markets, including Chicago, Illinois. ONEOK Partners GP serves as the general partner of the company. The company was formerly known as Northern Border Partners, L.P. and changed its name to ONEOK Partners, L.P. in May 2006. The company was founded in 1993 and is based in Tulsa, Oklahoma.

Advisors' Opinion:

• [By Louis Navellier]

  Oneok Partners (NYSE:OKS) is known for gathering, processing, storage and transportation of natural gas in the U.S. OKS has posted more modest gains than others on this list but still is up 10% year to date.

10 Best Oil Stocks To Invest In Right Now: Magnum Hunter Resources Corp (MHR)

Magnum Hunter Resources Corporation (Magnum Hunter), incorporated in June 1997, is an independent oil and gas company engaged in the exploration for and the exploitation, acquisition, development and production of crude oil, natural gas and natural gas liquids, primarily in the states of West Virginia, Ohio, Texas, Kentucky and North Dakota and in Saskatchewan, Canada. The Company is also engaged in midstream operations, including the gathering of natural gas through its ownership and operation of a gas gathering system in West Virginia and Ohio, named as its Eureka Hunter Pipeline System. The Company�� portfolio includes Marcellus/Utica Shales in West Virginia and Ohio, the Eagle Ford Shale in south Texas, and the Williston Basin/Bakken Shale in North Dakota and Saskatchewan, Canada. As of December 31, 2011, its proved reserves were 44.9 million barrels of oil equivalent and were approximately 48% oil. In August 2012, the Company closed on the acquisition of 1,885 net mineral acres located in Atascosa County, Texas. With this acquisition, the Company has approximately 7,278 gross acres and 5,212 net acres located in Atascosa County, Texas.

On May 3, 2011, it acquired NuLoch Resources Inc. In April 2011, Triad Hunter, its wholly owned subsidiary, acquired certain Marcellus Shale oil and gas properties located in Wetzel County, West Virginia. On April 13, 2011, it acquired NGAS Resources, Inc. In February 2012, Triad Hunter acquired leasehold mineral interests located primarily in Noble County, Ohio.

Eagle Ford Shale Properties

Eagle Ford Shale is located in Gonzales, Lavaca, Atascosa and Fayette Counties, Texas. The Eagle Ford Shale properties are held primarily by its wholly owned subsidiary, Eagle Ford Hunter, Inc. As of February 27, 2012, the Company�� Eagle Ford Shale properties included approximately 54,000 gross (24,000 net) acres primarily targeting the Eagle Ford Shale oil window, principally in Gonzales and Lavaca Counties, Texas. As of December 31! , 2011, proved reserves attributable to the Eagle Ford Shale properties were 5.4 million barrels of oil equivalent, of which 94% were oil and 24% were classified as proved developed producing, and 5.4 million barrels of oil equivalent. As of February 27, 2012, its Eagle Ford Shale properties included 18 gross (10 net) productive wells, of which it operated 14.

Williston Basin Properties

The Williston Basin is spread across North Dakota, Montana and parts of southern Canada. The basin produces oil and natural gas from a range of producing horizons, including the Madison, Bakken, Three Forks/Sanish and Red River formations. As of February 27, 2012, the Company�� Williston Basin properties included approximately 413,003 gross (122,561 net) acres. As of December 31, 2011, proved reserves attributable to the Williston Basin properties were 8.9 million barrels of oil equivalent, of which 94% were oil and 42% were classified as proved developed producing, and 8.8 million barrels of oil equivalent. As of February 27, 2012, the Williston Basin properties included approximately 288 gross (98.9 net) productive wells.

The Williston Hunter United States property acreage is located in Divide and Burke Counties, North Dakota, with its primary production from the Bakken Shale and Three Forks/Sanish formations. As of February 27, 2012, its Williston Hunter United States properties included approximately 36,355 net acres in the Williston Basin in North Dakota. As of February 27, 2012, the Williston Hunter United States properties included approximately 105 gross (9.5 net) productive wells. The Company�� Williston Hunter Canada property is located primarily in Enchant, near Vauxhall, Alberta, Canada, at Balsam near Grande Prairie, Alberta, Canada and at Tableland, near Estevan, Saskatchewan, Canada. As of February 27 2012, the Williston Hunter Canada properties included approximately 107,270 gross acres (79,693 net acres). At December 31, 2011, the Williston Hunter Canada prope! rties inc! luded approximately 65 gross productive wells. As of December 31, 2011, Williston Hunter Canada had 41,797 gross (32,944 net) acres of land that is prospective for Bakken and Three Forks/Sanish oil in the Tableland field. The Enchant property consists of 10,720 acres. As of December 31, 2011, 48 wells (44.1 net) were producing on this acreage. As of December 31, 2011, the Company owned approximately 43% average interest in 15 fields located in the Williston Basin in North Dakota consisting of 151 wells, and approximately 15,000 gross (6,450 net) acres.

Appalachian Basin Properties

The properties acquired in the NGAS acquisition are held by its wholly owned subsidiary, Magnum Hunter Production, Inc. As of February 27, 2012, its Appalachian Basin properties included a total of approximately 484,412 gross (412,323 net) acres, located primarily in the Marcellus Shale, Utica Shale and southern Appalachian Basin. At December 31, 2011, proved reserves attributable to its Appalachian Basin properties were 29.9 million barrels of oil equivalent, of which 27% were oil and 59% were classified as proved developed producing, and 30.2 million barrels of oil equivalent. As of February 27, 2012, the Appalachian Basin properties included approximately 3,112 gross (2,257 net) productive wells, of which we operated approximately 88%.

As of February 27, 2012, it had approximately 58,426 net acres in the Marcellus Shale area of West Virginia and Ohio. The Company�� Marcellus Shale property is located principally in Tyler, Pleasants, Doddridge, Wetzel and Lewis Counties, West Virginia and in Washington, Monroe and Noble Counties, Ohio. As of February 27, 2012, the Company operated 33 vertical Marcellus Shale wells and 16 horizontal Marcellus Shale wells. As of February 27, 2012, approximately 63% of its leases in the Marcellus Shale area were held by production.

Other Properties

The Company�� East Chalkley field is located in Cameron Parish, Louisiana.! The fiel! d consists of approximately 714 gross acres (443 net acres). This developmental project is an exploitation of bypassed oil reserves remaining in a natural gas field located at depths between 9,300 and 9,400 feet. As of February 27, 2012, the Company operated the East Chalkley field and owned an approximately 62% working interest and an approximately 42.7% net revenue interest in the field. Other properties of the Company are located in Nacogdoches, Colorado, Lavaca, Bee, Fayette and Wharton Counties, Texas and Desoto Parish, Louisiana. As of February 27, 2012, these properties consisted of an aggregate of approximately 7,050 gross (1,188 net) acres.

10 Best Oil Stocks To Invest In Right Now: Southern Union Company(SUG)

Southern Union Company, together with its subsidiaries, engages in the gathering, processing, transportation, storage, and distribution of natural gas in the United States. It operates in three segments: Transportation and Storage, Gathering and Processing, and Distribution. The Transportation and Storage segment engages in the interstate transportation and storage of natural gas in the Midwest and from the Gulf Coast to Florida. It also provides liquefied natural gas (LNG) terminalling and regasification services. The Gathering and Processing segment involves in gathering, treating, processing, and redelivering natural gas and natural gas liquids (NGLs) in Texas and New Mexico. It operates a network of approximately 5,500 miles of natural gas and NGL pipelines, 4 cryogenic processing plants with a combined capacity of 415 MMcf/d, and 5 natural gas treating plants with a combined capacity of 585 MMcf/d. The Distribution segment engages in the local distribution of natural gas in Missouri and Massachusetts. This segment serves residential, commercial, and industrial customers through local distribution systems. The company was founded in 1932 and is based in Houston, Texas.

Advisors' Opinion:

• [By Louis Navellier]

  Southern Union Co. (NYSE:SUG) also is involved with the gathering, processing, transportation, storage and distribution of natural gas in the U.S. Southern Union stock has jumped 74% year to date.