What Went Wrong With Coal's Biggest Player?

Peabody Energy (NYSE: BTU  ) is the largest and most diversified publicly traded pure-play coal miner. Its first quarter loss of nearly $0.20 a share doesn't inspire confidence in the broader coal market's future. But the company's global footprint does provide a glimpse of what's going on throughout the industry. 

Met coal's stranglehold
A year ago, Peabody lost $0.09 a share in the first quarter. Management had been calling for earnings to fall between $0.14 a share and a loss of a dime. They obviously missed their estimate, though some of that was from one-time items. The biggest detractor, however, was continued supply-driven pricing pressures in metallurgical coal.

(Source: CIA)

Peabody only mines met coal in Australia, where coal revenues fell around 17% in 2013 despite selling nearly 6% more tons of coal from the region. The big problem was an over 20% drop in revenues per ton, largely driven by the oversupply of met coal. The company's Aussie business hasn't improved, with revenues per ton down about 17% year over year in the just-ended quarter.

That pairs nicely with what's going on at domestic player Natural Resource Partners (NYSE: NRP  ) , which cut its dividend by 36% in early January because of continued weakness in the coal market. However, in an April presentation it gave an update on the market that helps to clarify where the problem lies. The thermal outlook was generally positive, but the first two bullet points on the met side were, "Prices at lowest level in several years" and, "Market is currently being overproduced." So the outlook for Peabody's Aussie operations through the rest of the year isn't great.

It's no wonder that Natural Resource Partners has been buying into non-coal assets in recent years. Those businesses accounted for around 30% of the top line in 2013, up from about 5% in 2005. And that number should get even larger this year as recent investments in natural gas assets should lead to a doubling of revenues from the relatively new gas segment.

Thermal goodness
The diversification effort should lead to a relatively solid first quarter for Natural Resource Partners -- especially since the company's outlook for thermal coal is actually pretty constructive. For example, management highlighted the cold winter, low utility inventories, an increase in natural gas prices, and foreign demand as positives. This suggests that the domestic thermal downturn might actually be nearing an end.

(Source: XTUV0010 via Wikimedia Commons)

In fact, during Peabody Energy's fourth quarter conference call, CEO Gregory Boyce noted, "PRB prices were up nearly 40% from their lows of last year." Based on Natural Resource Partners' April update on the thermal market, it's no surprise that U.S. thermal coal was actually a positive for Peabody, with a 10% jump in PRB shipments offsetting an overall 7% price decline in its U.S. business (the company also mines in the Illinois Basin).

The PRB accounted for almost 40% of revenues in 2013. Moreover, Peabody produced over 4.5 times as much coal from its PRB business as it did from its Australian met mines, its second largest operating segment. So, even a small price increase in the PRB will do a lot of good through the rest of the year. Keep an eye on this region and its impact on Peabody's business.

That's less true for Natural Resource Partners, which has relatively little exposure to the PRB. In fact, met coal is the partnership's largest revenue source at around 25% of the top line -- thus the dividend cut despite continuing diversification efforts and the signs of a nascent turnaround in the U.S. thermal coal market.

Listen to the words
At the end of the day, Peabody's update on the coal market is probably more important than its weak earnings result. The big news is that the PRB appears to be signaling a U.S. thermal coal rebound. That would be good for all of the domestic miners, particularly if it starts to spread to the other major coal basins. The other big news is that metallurgical coal is still struggling. That, unfortunately, means continued headwinds for Peabody and Natural Resource Partners.

Coal may be in trouble, but this energy boom is just getting underway
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Pennsylvania Real Estate Investment Trust is Oversold

The DividendRank formula at Dividend Channel ranks a coverage universe of thousands of dividend stocks, according to a proprietary formula designed to identify those stocks that combine two important characteristics — strong fundamentals and a valuation that looks inexpensive. Pennsylvania Real Estate Investment Trust (NYSE: PEI) presently has a stellar rank, in the top 10% of the coverage universe, which suggests it is among the top most "interesting" ideas that merit further research by investors.

But making Pennsylvania Real Estate Investment Trust an even more interesting and timely stock to look at, is the fact that in trading on Tuesday, shares of PEI entered into oversold territory, changing hands as low as $16.35 per share. We define oversold territory using the Relative Strength Index, or RSI, which is a technical analysis indicator used to measure momentum on a scale of zero to 100. A stock is considered to be oversold if the RSI reading falls below 30.

Click here to find out what 9 other oversold dividend stocks you need to know about, at DividendChannel.com »

In the case of Pennsylvania Real Estate Investment Trust, the RSI reading has hit 29.7 — by comparison, the universe of dividend stocks covered by Dividend Channel currently has an average RSI of 54.7. A falling stock price — all else being equal — creates a better opportunity for dividend investors to capture a higher yield. Indeed, PEI's recent annualized dividend of 0.80/share (currently paid in quarterly installments) works out to an annual yield of 4.85% based upon the recent $16.52 share price.

A bullish investor could look at PEI's 29.7 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. Among the fundamental datapoints dividend investors should investigate to decide if they are bullish on PEI is its dividend history.

In general, dividends are not always predictable; but, looking at the history chart below can help in judging whether the most recent dividend is likely to continue.

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According to the ETF Finder at ETFChannel.com, PEI makes up 1.00% of the iShares Retail Real Estate Capped ETF (AMEX: RTL) which is trading relatively unchanged on the day Tuesday.

 

LinkedIn Compliance Program Offers SEC, FINRA Help

LinkedIn announced Thursday its LinkedIn Certified Compliance Partner program, which help advisors stay compliant with Securities and Exchange Commission and Financial Industry Regulatory Authority rules.

The program now includes six certified compliance partners: Hearsay Social, Smarsh, Socialware, Global Relay, Erado and Actiance.

“Increasingly, customer conversations are happening across LinkedIn Company Pages, individual profiles and LinkedIn Groups,” Clara Shih, CEO of Hearsay Social, told ThinkAdvisor in an email. “It’s imperative for today’s financial firms, business units, and representatives to take part in these conversations. We are proud to partner with LinkedIn to enable compliant business success across the financial sector.”

As LinkedIn notes, the Certified Compliance Partners provide “expert monitoring, archiving, and management of communications for enterprises in regulated industries.”

As Smarsh CEO Stephen Marsh noted in a recent statement, “LinkedIn is the No. 1 social media channel used and requested by financial advisors.” Smarsh, which delivers cloud-based archiving solutions, has “worked closely with LinkedIn to construct a solution that simplifies and strengthens compliance oversight, but also gives our mutual customers the freedom to connect, share ideas and discover opportunities using the world’s largest professional network,” he said.

Smarsh’s “enhanced archiving solution” in partnership with LinkedIn has already been rolled out to more than 600 existing financial services customers around the world, the company said in the statement.

Smarsh said that it captures content through a direct connection with LinkedIn APIs, which allows customers to search and supervise their organization’s LinkedIn activity, including Company Pages, Profiles, Posts and Groups.

Firms can also:

Preserve LinkedIn content in an unalterable format that is easily producible for regulatory examinations, audits or e-discovery events; 

Search and review LinkedIn content intelligently in a new interface designed to showcase the full conversation and context of posts, comments and messages; 

Leverage the archiving platform’s universal search capabilities across all supported content, including email, instant messaging, mobile, and other social platforms; and 

Manage the provisioning of archiving for each LinkedIn account with self-service administrative tools.

Is Activision Too Inactive?

With shares of Activision Blizzard (NASDAQ:ATVI) trading at around $14.90, is ATVI 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

For the week ending April 20, Activision had several top-selling games in the TOP 75 (global), but its top spot was #9 with Call of Duty: Black Ops II (X360). Its second spot was at #16 with Call of Duty: Black Ops II (PS3). The next spot claimed by Activision was #28 with Starcraft II: Heart of the Swarm (personal computer). At #58 was Starcraft II: Wings of Liberty (personal computer). Skylanders: Spyro's Adventure and Skylanders Giants also made the list. Overall, that's a decent performance, but Nintendo claimed three of the Top 10 spots with Tomodachi Collection: Shin Seikatsu, Luigi's Mansion: Dark Moon, and Fire Emblem: Awakening.

Take-Two Interactive (NASDAQ:TTWO) is holding its own with Bioshock Infinite, NBA 2K13, Major League Baseball 2K13, and Grand Theft Auto IV. Electronic Arts (NASDAQ:EA) is also still making its presence felt with FIFA Soccer 13, Sim City, Madden NFL 13, Battlefield 3, Crysis 3, and Tiger Woods PGA Tour 14.

What stands out most about the information above is: where are all the new and exciting games? Of course, there is a lot being done in regards to game development, but the industry needs something new and fresh – a different angle that will excite gamers once again. Which company is capable of producing such a title?

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Looking at Activision in a big-picture sense (opposed to specific gaming titles), there are many positives, which include:

Consistent profits Free cash flow improvement Consistent annual revenue growth (despite industry concerns) Analysts love the stock: 23 Buy, 2 Hold, 0 Sell A 3.1 of 5 rating on Glassdoor.com (indicates strong company culture) Quality debt management Strong margins 1.30 percent dividend yield (peers don't offer any yield)

There aren't enough negatives to form a list. One potential negative is that the stock didn't hold up well in 2008. However, not many stocks did, and Activision held up better than its peers at that time.

Now let's take a look at some comparative numbers. The chart below compares fundamentals for Activision, Electronic Arts, and Take-Two. Activision has a market cap of $16.61 billion, EA has a market cap of $5.37 billion, and Take-Two has a market cap of $1.34 billion.

	ATVI	EA	TTWO
Trailing   P/E	14.67	32.69	N/A
Forward   P/E	14.39	16.11	6.90
Profit   Margin	23.66%	4.42%	-11.18%
ROE	10.54%	8.29%	-19.62%
Operating   Cash Flow	$1.34 Billion	$378.00 Million	$11.10 Million
Dividend   Yield	1.30%	N/A	N/A
Short   Position	N/A	5.60%	19.30%

 

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

E = Equity to Debt Ratio Is Strong   

The debt-to-equity ratio for Activision is stronger than the industry average of 0.30. Debt management has been superb.

	Debt-To-Equity	Cash	Long-Term Debt
ATVI	0.00	$4.38 Billion	$0
EA	0.28	$1.49 Billion	$554.00 Million
TTWO	0.58	$448.72 Million	$330.31 Million

 

T = Technicals Are Strong     

Activision has been a steady performer over the past three years.

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	1 Month	Year-To-Date	1 Year	3 Year
ATVI	2.35%	41.38%	17.03%	35.16%
EA	0.51%	23.14%	16.71%	-9.56%
TTWO	-2.86%	41.69%	9.09%	44.44%

 

At $14.90, Activision is trading above all its averages.

50-Day   SMA	14.50
100-Day   SMA	12.97
200-Day   SMA	12.26

 

E = Earnings Have Been Steady                   

Earnings and revenue have consistently improved on an annual basis. This is somewhat rare, and it's certainly a positive.

	2008	2009	2010	2011	2012
Revenue   ($)in   billions	N/A	3.03	4.45	4.76	4.86
Diluted   EPS ($)	N/A	0.09	0.33	0.92	1.01

 

 

	12/2011	3/2012	6/2012	9/2012	12/2012
Revenue   ($)in   billions	1.41	1.17	1.08	841.00M	1.77
Diluted   EPS ($)	0.09	0.33	0.16	0.20	0.32

 

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 Might Support the Industry

Changes take place in the industry at a rapid pace. Companies involved must be willing and capable of making necessary adjustments. Creating excitement with a new technological angle or game title is a key to success. It's also imperative that digital is a part of the game plan. The biggest potential negative is consumer weakness, which has been a concern for quite some time now.

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Conclusion

Activision is a very well-run company that's still trading at a fair valuation. There will be setbacks, especially during bear markets, but over the long haul, Activision is a winner. It's also possible that Activision will make an important acquisition at some point in the future. This would increase market share, and Activision has the cash to do it. However, it's not a necessary move.

There's Another Side to the Nuclear Puzzle

Cameco (NYSE: CCJ  ) has a lot invested in the future growth of nuclear power. And it expects good things, particularly in Asia. However, nuclear power has older plants (built decades ago) that need to be cleaned up. That's where companies like Fluor (NYSE: FLR  ) can make a buck.

The future is electric
According to uranium miner Cameco, there will be 144 new nuclear power plants built by 2023. That will push the total number of nuclear facilities up more than 20%. Although there is currently an oversupply of uranium in the market, the new facilities should take up that slack.

In fact, Cameco believes that about 20% of future demand will require new supplies, or there will be shortfalls of uranium. That's great for Cameco, which has the capacity to increase production by about 50% over the next few years. However, because of the current oversupply, the company has backed away from firm expansion commitments. It's planning to bring on new supply as the market requires.

Source: Cameco data by YCharts.

That's not a bad call, since Cameco telegraphing new supply might lead customers to hold off on orders and hamper price discussions. Note that the shares remain well off their 2011 peak. And despite three years of falling earnings (between 2009 and 2012), Cameco's bottom line advanced 20% last year. Now could be a good time to take a look at this pure play since future nuclear growth appears solid. In fact, about half of the new nuclear plants (Cameco expects by 2023) were already under construction last year.

What about the past?
The thing about nuclear power is that some of the existing plants were built decades ago. The technology, to put it mildly, is out of date. Massive disasters like the recent events in Fukushima, Japan, prove this. In fairness, no one expected an earthquake leading to a tsunami leading to a nuclear meltdown. But, in hindsight, there were design elements that could have stopped the meltdown even under such perfect-storm conditions.

So while new nuclear plants are being erected, what's happening to the old ones? Some of them are coming down. Looking at Cameco's projections, the 144 new plants come at the same time that 51 are expected to be shut. That leads to a net advance of 93 plants.

But you don't just put up a closed sign and walk away from a nuclear plant. These giant facilities need to be decommissioned. And that's where companies like Fluor come into play. Fluor just won a joint bid to decommission 12 nuclear sites in the United Kingdom. The 14 year contract is worth nearly $12 billion.

(Source: Ken Hawkins, via Wikimedia Commons).

Fluor is a global engineering and construction company. And it's no small fry -- Fluor's sales last year topped $27 billion and earnings were over $4 a share, an almost 50% year-over-year advance. That said, construction tends to be cyclical, so earnings can be volatile.

Only about 4% of Fluor's revenue in the fourth quarter came from the power industry. However, at the end of the year the sector accounted for 6% of the company's nearly $35 billion backlog. Add in the UK contract and there's clearly more growth ahead. Note that the oil and gas sector, which is experiencing a Renaissance in the United States, accounted for about half of the revenue and backlog. Power projects like the one to decommission UK nuclear sites are really icing on this cake.

Take me to the cleaners...
Events like Fukushima show the dangers of nuclear power. While that won't stop the sector from growing, which is good for Cameco and its shareholders, it shows that there are older plants that need to be shut down. Engineering and construction companies like Fluor are there to do just that. Keep an eye on "the other side" of the nuclear power market because there's plenty of money to be made cleaning up old messes.

OPEC is absolutely terrified of this game-changer
Imagine a company that rents a very specific and valuable piece of machinery for $41,000… per hour (that's almost as much as the average American makes in a year!). And Warren Buffett is so confident in this company's can't-live-without-it business model, he just loaded up on 8.8 million shares. An exclusive, brand-new Motley Fool report reveals the company we're calling OPEC's Worst Nightmare. Just click HERE to uncover the name of this industry-leading stock… and join Buffett in his quest for a veritable LANDSLIDE of profits!

What's Getting Hacked Now? Your Phone, Your TV and Your Toilet

Blend Images, John Lund/Getty Images Think you're immune from hackers just because you've got an updated antivirus program on your computer? Well, think again. Hackers are regularly finding new and innovative ways to break into the various connected devices in your life. And security researchers are always publishing research demonstrating strange new methods that a determined hacker could use to invade your life. Here are a few of the terrifying threats we've come across lately. Hacking Your TV to Spy on You In the wake of revelations about the NSA's domestic surveillance programs, some observers expressed concern that the agency could compel Microsoft to use the camera attached to the new Xbox One to spy on users in their living rooms. But it turns out you don't need to be a government spook to watch people through their TVs. At last month's Black Hat security conference, researchers showed vulnerabilities in Samsung "Smart" TVs (which have Internet connectivity, webcams and other computers-like features) that could allow a hacker to take control of the television. And on Sunday, Sen. Chuck Schumer (D-NY) called for security standards to make sure that hackers couldn't use the built-in webcams to watch you while you watch TV. So if you don't want hackers watching you sit on the couch in your underwear, take the advice that the Black Hat researchers gave Mashable: "When in doubt, there's always a piece of tape or a post-it you can put on the camera." Hacking Your Phone Through a Charger If you've ever been stuck in an airport with your phone battery reading 10 percent, the sight of a charger plugged into a wall can look like an oasis in a desert. But wait! Is that really a charger? Not necessarily. Another demonstration at Black Hat showed an iPhone charger that was actually a micro-computer in disguise. Plug in your iPhone and the tiny computer could upload a fake Facebook app that looks like the real thing but is capable of accessing your contacts and stealing your passwords, among other mayhem. Apple has promised to fix the vulnerability -- but not until its next operating system, iOS 7, comes out sometime this fall. In the meantime, be wary of any chargers you see lying around. Hacking Your Toilet OK, probably not toilet, assuming you have a regular toilet that relies entirely on pipes and water and doesn't have electrical components. But one brand of pricey, high-tech toilet is apparently prone to being hacked and remotely controlled. For some reason, the Satis Toilet has a mobile app that can control certain functions of the toilet over Bluetooth -- raising and lowering the lid, flushing, and even operating the bidet. But it turns out that the app isn't password protected, which means anyone in the vicinity of your toilet who has the app could make the toilet go crazy. Since there's no apparent financial benefit to flushing someone else's toilet, we're guessing hackers aren't lining up to take advantage of this. Still, turning on the bidet while your roommate is sitting on the toilet would be a great prank.

Should You Get a Credit Card After Bankruptcy?

If you've recently had a bankruptcy discharged, your mailbox may be filling with new credit card offers.

Although it seems counterintuitive, some companies actually seek out and market their cards to recently bankrupt individuals. That may be due in part to the fact that once you've declared bankruptcy, the law limits how quickly you can do it again, up to eight years in some cases.

However, just because you can get a credit card after bankruptcy, should you?

Using credit cards to rebuild a credit score
One of the best reasons to get a credit card after bankruptcy is to improve your credit score.

Your credit score is based upon several factors, including your payment history as well as how long your accounts have been open. Therefore, it can make sense to apply for a credit card immediately after bankruptcy to begin reestablishing your creditworthiness. However, be sure you wait until after your discharge is complete before submitting any applications.

Once you get a credit card, go ahead and use it to charge a reasonable amount of purchases each month. Since post-bankruptcy cards can carry hefty interest rates, you won't want to carry a balance. Instead, only charge what you can pay off each month.

It's important to keep an eye out for and stay away from subprime cards targeted at individuals with bad or limited credit. The hefty fees and high interest rates of some of these cards will eat away at the already small credit limit these cards offer.

What you should know about secured credit cards
Credit cards for bad credit and credit cards for limited credit are typically secured. That means you pay a deposit to the company before the card is issued, and that deposit is your line of credit. In addition, they may have an annual fee and higher interest rates than those offered on other cards.

While the terms may not be as appealing as those offered on unsecured cards, don't discount them completely. Issuers of secured credit cards will report your payments to credit bureaus and help boost your credit score the same as other cards. However, as with other credit cards, compare several options to be sure you are getting the lowest fees and interest possible.

And although they may appear similar, don't confuse secured credit cards with prepaid cards. Except in rare instances, prepaid cards don't report to the credit bureaus and won't help your score.

Why you might think twice about credit cards after bankruptcy
Individuals file bankruptcy for a variety of reasons, from unemployment to medical emergencies to overspending. If overspending is what led you to bankruptcy court, you may want to carefully consider whether to apply for a new card.

Credit cards can be powerful tools to rebuild your finances, but they need to be used responsibly. Be honest about your ability to limit your spending and pay off your balance each month.

If you aren't sure, try to secure a card by self-funding a low credit limit. A low-limit card may help you test the waters without letting you get in over your head. If you reach a month where you can't pay off the balance, put the card away until you can.

Bankruptcy can be a stressful experience and most certainly will impact your credit score. However, it isn't permanent, and your credit can be salvaged.

The original article Should You Get a Credit Card After Bankruptcy? appeared on CardRatings.com

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More credit card articles can be found on CardRatings.com:

Sworn off credit cards? It could hurt your credit 

What's a credit builder loan?

Want to improve your credit score? Think like an insider

Week In FX Asia – PBoC Sets Yuan Fix Higher

S&P did not limit its focus to Russia on Friday. The rating agency noted that China shipbuilding, metal, mining and building material companies are vulnerable to defaults.

“A slowing economy and tough operating conditions in some leveraged industries facing cyclical downturns and overcapacity will lead to more missed payments” noted the agency.

However on the positive side, S&P does not see a “Lehman moment” because banks are predominately funded with retail and business deposits. However, it cannot rule out distress and credit losses over the next couple of years. Markets can expect Beijing to continue to support the financial system (especially banks) at least until authorities can administer orderly closings of troubled entities.

Last week's Q1 GDP report from China was significant, it not only revealed a slowdown in GDP growth to +7.4%, but also indicated that economy wide inflation slumped further towards outright “deflation.” There is a fear that deterioration in Chinese economic data will lead to exporting deflation via unavoidable Chinese currency devaluation.

The RMB is ending the week on a sour note, extending losses despite the PBoC setting the yuan fix stronger for the third consecutive session. At one point during Friday's intraday session the yuan happened to fall to its lowest level in 16-months. The central parity is set at 6.1576 vs. Thursdays 6.1589 (offshore NDF's 6.2669). It seems that the PBoC is deliberately setting the rate higher to perhaps give the perception that they are not intently weakening the yuan. Dealers still expect the Yuan to remain weak in Q2 on concerns of China's slowing economy.

  China's Big Banks Using use their own Capital Ratios Models Japan Leads Asian Equities Lower China Watches Obama Japan Visit Closely China May Still Lag Japan RBNZ Signals More Tightening NZD/USD at 0.8630 on hawkish RBNZ USD/JPY around 102.50 Before Tokyo CPI Obama Reaffirms Japan Commitment During Visit BOJ Governor Says Inflation Might Beat Expectations BOJ Says 90% of Japanese Banks Increased Risky Assets After QE China Opens 80 Projects to Private Investment Asian Equities Mixed after China PMI Signs China is Stabilizing after PMI Data Asian Equities Mixed after China Data China PMI Contracts for Fourth Month Yen's Safe Haven Status Under Threat Asian Equities Weaker following China's Lead Japan Open for Business Japan Could Ask US To Increase Shale Gas Export Japan-US To Resume TPP Talks Tuesday Japan Trade Deficit Balloons Due to Energy Imports

WEEK AHEAD

 

* GBP Gross Domestic Product
* EUR German Consumer Price Index
* USD Consumer Confidence
* EUR German Unemployment Rate
* EUR Euro-Zone Consumer Price Index
* CAD Gross Domestic Product
* USD Gross Domestic Product
* USD Federal Open Market Committee Rate Decision
* USD ISM Manufacturing
* USD Change in Non-farm Payrolls
* USD Unemployment Rate

 

The post Week In FX Asia – PBoC Sets Yuan Fix Higher appeared first on MarketPulse.

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

Posted-In: Forex Markets

Originally posted here...

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15 Oil and Gas Stocks to Sell Now

Popular Posts: 10 Oil and Gas Stocks to Buy Now15 Oil and Gas Stocks to Sell NowHottest Energy Stocks Now – RIG SDRL TDW ESV Recent Posts: Hottest Healthcare Stocks Now – PCRX EXAM HGR SIRO Biggest Movers in Financial Stocks Now – NLY PVD WSH FFG Biggest Movers in Technology Stocks Now – AAPL EA HRC NJ View All Posts

The ratings of 15 oil and gas stocks are down this week, according to the Portfolio Grader database. Each of these rates a “D” (“sell”) or “F” overall (“strong sell”).

Crescent Point Energy Corp. () earns an F (“strong sell”) this week, moving down from last week’s grade of D (“sell”). In Portfolio Grader’s specific subcategories of Earnings Revisions, Earnings Surprise, Cash Flow and Margin Growth, CPG also gets F’s. The stock currently has a trailing PE Ratio of 108.50. .

This week, Golar LNG Partners () falls to a D (“sell”), worse than last week’s grade of C (“hold”). Golar LNG Partners owns floating storage and regasification units and liquefied natural gas carriers. .

Kinder Morgan, Inc. Class P () earns an F this week, falling from last week’s grade of D. Kinder Morgan is a pipeline transportation and energy storage company. The stock’s trailing PE Ratio is 29.30. .

Slipping from a D to an F rating, Cosan Limited Class A () takes a hit this week. Cosan is a fully integrated company in the renewable energy and infrastructure segments in Brazil. The stock gets F’s in Cash Flow and Margin Growth. The stock has a trailing PE Ratio of 39.50. .

Goodrich Petroleum Corporation’s () rating weakens this week, dropping to a D versus last week’s C. Goodrich Petroleum explores, develops, produces and acquires oil and natural gas properties. The stock receives F’s in Earnings Growth, Earnings Revisions, Equity and Cash Flow. As of April 25, 2014, 35.6% of outstanding Goodrich Petroleum Corporation shares were held short. .

The rating of EXCO Resources, Inc. () slips from a D to an F. EXCO Resources is an oil and natural gas company involved in the exploration, exploitation, development and production of onshore North American oil and natural gas properties. The stock gets F’s in Earnings Surprise, Equity and Cash Flow. As of April 25, 2014, 15.5% of outstanding EXCO Resources, Inc. shares were held short. The trailing PE Ratio for the stock is 54.20. .

Calumet Specialty Products Partners, L.P. () experiences a ratings drop this week, going from last week’s D to an F. Calumet Specialty Products produces hydrocarbon products in North America. The stock gets F’s in Earnings Growth, Earnings Momentum and Earnings Revisions. Cash Flow and Margin Growth also get F’s. .

The rating of Chevron Corporation () declines this week from a D to an F. Chevron is an integrated energy company with operations in countries located around the world. .

Plains All American Pipeline, L.P. () gets weaker ratings this week as last week’s C drops to a D. Plains All American Pipeline is involved in interstate and intrastate crude oil pipeline transportation and crude oil terminalling storage activities. .

This week, TransCanada Corporation’s () rating worsens to an F from the company’s D rating a week ago. TransCanada develops and operates energy infrastructures, including natural gas pipelines. The stock’s trailing PE Ratio is 27.10. .

This week, Enbridge () drops from a D to an F rating. Enbridge is in the business of transportation and distribution of crude oil and natural gas primarily in Canada and the United States. The stock gets F’s in Earnings Growth, Earnings Momentum and Cash Flow. The stock currently has a trailing PE Ratio of 84.30. .

This is a rough week for StealthGas (). The company’s rating falls to D from the previous week’s C. StealthGas offers marine transport services for liquefied petroleum gas producers and users. In Earnings Growth, Earnings Revisions, Earnings Surprise and Cash Flow the stock gets F’s. Shares of the stock have been trading at an exceptionally rapid pace, up twofold from the week prior. .

Ultrapar Participacoes S.A. Sponsored ADR () is having a tough week. The company’s rating falls from a D to an F. Ultrapar Participacoes is engaged in the fuel distribution and chemical businesses in Brazil. .

Gevo () earns an F this week, falling from last week’s grade of D. Gevo operates as a technology development company for biobutanol. The stock gets F’s in Equity, Cash Flow and Sales Growth. As of April 25, 2014, 10.4% of outstanding Gevo shares were held short. .

This is a rough week for PDC Energy (). The company’s rating falls to D from the previous week’s C. PDC Energy is an oil and gas company with drilling and production operations in the Rocky Mountains, the Appalachian Basin and Michigan. The stock gets F’s in Earnings Revisions and Cash Flow. As of April 25, 2014, 11.1% of outstanding PDC Energy shares were held short. .

Louis Navellier’s proprietary Portfolio Grader stock ranking system assesses roughly 5,000 companies every week based on a number of fundamental and quantitative measures. Stocks are given a letter grade based on their results — with A being “strong buy,” and F being “strong sell.” Explore the tool here.

Dow Jones Industrials Hits Record High; S&P 500 Not Far Behind

Just when we were getting accustomed to the S&P 500 getting to hit all the new record highs, here comes the Dow Jones Industrial Average, hitting a new record high of its own.

AFP

The Dow Jones Industrial Average gained 0.7% to 15,746.88–its 33rd this year, tying it with the S&P 500–led higher by Microsoft’s (MSFT) 4.2% gain, UnitedHealth Group’s (UNH) 2.3% rise and Chevron’s (CVX) 2.3% advance. Only three Dow stocks finished in the red today, including Nike (NKE), which dropped 0.6%, and the Home Depot (HD), which fell 0.3%. Yes, it was that kind of day.

The S&P 500 gained 0.4% to 1,770.49, its second highest close of the year.

Ned Davis Research’s Ned Davis looks for reasons to be bearish and finds a few:

The weight of the indicator evidence continues to lean bullish. There are always indicators that disagree with the weight of the evidence, so it is important that we have an objective model…to help keep us in line with basic conditions, like a bullish tape and a friendly Fed.

Yet, one never knows for certain in this business, and it may be helpful, for flexibility and an open mind, to know the other side of the debate, should trends change.

Among the evidence that bothers me is [margin debt]. Margin Debt at the end
of September was at record high levels, even above 2000 and 2007. While margin
debt is usually bullish as long as it is rising, we are in a zone that has, on average,
suggested the upside was limited.

Pierpont Securities’ Stephen Stanley ponders the potential impact–or lack thereof–of tomorrow’s GDP release:

The first estimate of GDP always runs the risk of being viewed by market participants as "old news." In the case of tomorrow's Q3 GDP report, the data will almost certainly be viewed that way for two reasons. First, it is quite literally old news, in that the release was delayed by eight days by the federal government shutdown. Second, the specter of the fiscal disruptions in October have created a before shutdown/after shutdown breach in how the economic data are perceived. Any numbers that relate to conditions prior to the shutdown are dated, in that the landscape may (or may not) be considerably different, depending on whether the fiscal travails caused a lasting drag on activity and/or confidence.

Anyone for a new high tomorrow?

Best Defense Stocks To Buy For 2015

The Department of Defense awarded Honeywell (NYSE: HON  ) a sizable supply contract Tuesday.

The Defense Logistics Agency, Aviation, extended the term of Honeywell's three-year base contract for the supply of consumable and depot-level reparable spare parts for multiple weapons systems by an additional 18 months. The contract also has three, three-year option periods. One effect of this extension is to add $165.1 million to the�indefinite-delivery requirements contract. Another is to extend the completion date for Honeywell's performance to Nov. 6, 2014.

Weapons systems such as the ones covered in this contract generally accrue to Honeywell's Aerospace division, which at $12 billion in annual business, accounts for roughly $0.32 out of every $1 Honeywell brings in as revenue. As such, Tuesday's contract win could make up close to 1.4% of the Aerospace division's revenues over the next year -- and about 0.4% of Honeywell's overall sales for the year.

Today, the first trading day after the contract was announced, Honeywell shares are up 0.5% as of this writing, trading around $77.30.

Best Defense Stocks To Buy For 2015: Raytheon Company(RTN)

Raytheon Company, together with its subsidiaries, provides electronics, mission systems integration, and other capabilities in the areas of sensing, effects, and command, control, communications, and intelligence systems, as well as mission support services in the United States and internationally. It operates in six segments: Integrated Defense Systems, Intelligence and Information Systems, Missile Systems, Network Centric Systems, Space and Airborne Systems, and Technical Services. The Integrated Defense Systems segment provides integrated naval, air, and missile defense and civil security response solutions. The Intelligence and Information Systems segment offers intelligence, surveillance and reconnaissance, advanced cyber solutions, weather and environmental solutions, and information-based solutions for law enforcement and homeland security. The Missile Systems segment develops and produces weapon systems, including missiles, smart munitions, close-in weapon systems, projectiles, kinetic kill vehicles, and directed energy effectors for the armed forces of the U.S. and other allied nations. The Network Centric Systems segment provides net-centric mission solutions, including integrated communications systems, command and control systems, combat systems, and operations and precision components for the U.S. federal, state, and local government customers, as well as civil customers. The Space and Airborne Systems segment designs and develops integrated systems and solutions for missions, including intelligence, surveillance, and reconnaissance; precision engagement; unmanned aerial operations; and space. The Technical Services segment provides training, logistics, engineering, product support, and operational support services for the mission support, homeland security, space, civil aviation, counterproliferation, and counterterrorism markets. Raytheon Company was founded in 1922 and is based in Waltham, Massachusetts.

Advisors' Opinion:

• [By Rich Smith]

  The configuration described in DSCA's notification to Congress does not appear to be configured for ground attack, however. According to the notice, the French drones would be powered by Honeywell (NYSE: HON  ) turboprop engines, be equipped with Raytheon's (NYSE: RTN  ) AN/DAS-1 Multi-Spectral Targeting Systems and AN/APX-119 (or KIV-119) international friend-or-foe transponders, and also ARC-210 radio systems from Rockwell Collins (NYSE: COL  ) , but no mention is made of any munitions, or pylons for attaching them to the planes, being sold to France.

Best Defense Stocks To Buy For 2015: Safran SA (SAFRY.PK)

Safran SA is a France-based high-technology company which produces aircraft and rocket engines and propulsion systems. It divides its work into three segments: Aerospace, Aircraft, Defense and Security. The Aerospace Propulsion division provides engines, turbines and parts for aircraft, and rocket boosters for civil, military and spatial markets through several subsidiaries, including Snecma, among others. The Aircraft Equipment division produces landing gear, wheels and carbon brakes, aircraft engine nacelles and airborne power electronics through its subsidiaries, including Aircelle, among others. The Defense division includes the subsidiary, Sagem, and makes systems and equipment for inertial navigation and other defense applications to be used on military transport and combat aircraft, helicopters, warships, armored vehicles and artillery systems. In October 2013, the Company completed the sale of its United States-based subsidiary, Global Motors Inc to Allied Motion Inc. Advisors' Opinion:

• [By Daniel Lauchheimer]

  Currently, three main companies supply security equipment to the TSA - Safran (SAFRY.PK), Smiths (SMGKF.PK), and Level-3 Holdings (LLL). All three of these companies sell the whole range of their products to the TSA, with an ETD offering included. Recently, however, a new company, Implant Sciences Corporation (IMSC.PK) received approval from the TSA to begin selling their ETD equipment to airport security professionals. This approval has opened the door for IMSC to begin taking some market share away from the more established players in the US and beyond.

10 Best Life Sciences Stocks To Own Right Now: AvWorks Aviation Corp (SPLI)

AvWorks Aviation Corp., formerly Datamill Media Corp., incorporated on January 15, 1990, and its wholly owned subsidiary, Young Aviation, LLC (Young Aviation) operate as a diversified broker and supplier of parts and services to the worldwide aviation and aerospace markets. The Company services a broad range of clients such as aircraft leasing companies, major airlines, repair stations, fixed-base operators, leasing companies and aftermarket suppliers. The Company was a management consulting firm that planned to educate and assist small businesses to improve their management, corporate governance, regulatory compliance and other business processes, with a focus on capital market participation.

On October 3, 2011, the Company acquired 100% interests in Young Aviation. Young Aviation is a diversified broker and supplier of parts, components and products to the general aviation and aerospace markets of the United States, Europe and Asia. Young Aviation services a range of clients, such as aircraft leasing companies, major airlines, repair stations, fixed-base operators, leasing companies and after market suppliers.In December 2011, the Company announced the purchase and salvage of a Lear Jet 24 from a private owner. On June 22, 2011, Datamill Media Sub Corp. was organized as a wholly owned subsidiary of Datamill Media Corp. The principal business of this subsidiary was to act as a merger vehicle for the pending merger with M3X Media, Inc. On August 12, 2011, the Company terminated the Merger Agreement with M3X Media, Inc.

Advisors' Opinion:

• [By James E. Brumley]

  It's admittedly scary to try and catch a falling knife, but sometimes it's worth the risk. Case in point? AvWorks Aviation Corp. (OTCMKTS:SPLI) .... better known as Vapor Group. Without knowing more about the stock, the sheer fact that SPLI has fallen nearly 90% since March 26th - with about a third of that coming today alone - the stock would be best left avoided by nearly any trader. For the small group of savvy traders that know the tell-tale signs and know how the market really works, however, AvWorks Aviation, or Vapor Group, may be in a prime buying situation today.... yes, even in the midst of this bloodbath.

• [By James E. Brumley]

  It's a rarity that I reiterate an idea I've previously opined... particularly one that I only published just a couple of days earlier. The fact that I'm going to do so with AvWorks Aviation Corp. (OTCMKTS:SPLI) - perhaps better known to some as Vapor Group - should tell you how important it is to re-convey the message. Here goes...

Best Defense Stocks To Buy For 2015: Northrop Grumman Corp (NOC)

Northrop Grumman Corporation (Northrop Grumman), incorporated on January 16, 2001, provides products, services, and integrated solutions in aerospace, electronics, information and services to its global customers. As of December 31, 2011, the Company operated in four segments: Aerospace Systems, Electronic Systems, Information Systems and Technical Services. The Company conducts most of its business with the United States Government, principally the Department of Defense (DoD) and intelligence community. It also conducts business with local, state, and foreign Governments and domestic and international commercial customers. Effective as of March 31, 2011, the company completed the spin-off of Huntington Ingalls Industries, Inc. (HII). HII operates the Company�� former shipbuilding business. In September 2012, it acquired M5 Network Security Pty Ltd.

Aerospace Systems

Aerospace Systems is engaged in the design, development, integration and production of manned and unmanned aircraft, spacecraft, high-energy laser systems, microelectronics and other systems and subsystems. Aerospace Systems��customers, primarily domestic government agencies, use these systems in a number of different mission areas, including intelligence, surveillance and reconnaissance; communications; battle management; strike operations; electronic warfare; missile defense; earth observation; space science; and space exploration. The segment consists of four business areas: Strike & Surveillance Systems; Space Systems; Battle Management & Engagement Systems; and Advanced Programs & Technology. Strike & Surveillance Systems designs, develops, manufactures and integrates tactical and long-range strike aircraft systems, unmanned systems, and missile systems. Key programs include the RQ-4 Global Hawk unmanned reconnaissance system, B-2 stealth bomber, F-35 Lightning II (F-35), F/A-18 Super Hornet strike fighter, Minuteman III Intercontinental Ballistic Missile (ICBM), MQ-8B Fire Scout unmanned aircraft syste! m, and Multi-Platform Radar Technology Insertion Program (MP-RTIP).

Space Systems designs, develops, manufactures, and integrates spacecraft systems, subsystems and electronic and communications payloads. Its main programs include the James Webb Space Telescope (JWST), Advanced Extremely High Frequency (AEHF) payload and many restricted programs. The Battle Management & Engagement Systems designs, develops, manufactures, and integrates airborne early warning, surveillance, battlefield management, and electronic warfare systems. Key programs include the E-2 Hawkeye, Joint Surveillance Target Attack Radar System (Joint STARS), Broad Area Maritime Surveillance (BAMS) unmanned aircraft system, EA-6B Prowler and its next generation platform, the EA-18G Growler, and Long Endurance Multi Intelligence Vehicle (LEMV). Advanced Programs & Technology creates advanced technologies and concepts. Its programs include the Navy Unmanned Combat Air System (N-UCAS), and other directed energy and advanced concepts programs.

Electronic Systems

Electronic Systems is engaged in the design, development, manufacture, and support of solutions for sensing, understanding, anticipating, and controlling the environment for its global military, civil, and commercial customers and their operations. Electronic Systems provides a variety of defense electronics and systems, airborne fire control radars, situational awareness systems, early warning systems, airspace management systems, navigation systems, communications systems, marine systems, space systems, and logistics services. The segment consists of five business areas: Intelligence, Surveillance, & Reconnaissance Systems; Land & Self Protection Systems; Naval & Marine Systems; Navigation Systems; and Targeting Systems. Intelligence, Surveillance & Reconnaissance (ISR) Systems delivers products and services for space satellite applications, airborne and ground-based surveillance, multi-sensor processing, analysis, and dissemination for com! bat units! and national agencies both domestically and internationally, providing battlespace awareness, missile defense, and command and control. Key products include the Space-Based Infrared System (SBIRS), Defense Meteorological Satellite Program (DMSP), Defense Support Program (DSP), ground processing, exploitation and dissemination systems, the TPS-78/703 family of ground based surveillance radars, and the Multi-role Electronically Scanned Array (MESA) radar.

Land & Self Protection Systems delivers products, systems, and services that support ground-based, helicopter and fixed wing platforms (manned and unmanned) with sensor and protection systems. These systems perform threat detection and countermeasures that defeat infrared and radio frequency (RF) guided missile and tracking systems. The division also provides integrated electronic warfare capability, communications, and intelligence systems; unattended ground sensors; automatic test equipment; and advanced threat simulators. Key programs include the U.S. Marine Corps Ground/Air Task Oriented Radar (G/ATOR) multi-mission radar; the Large Aircraft Infrared Countermeasures (LAIRCM) system for the U.S. Air Force, U.S. Navy, and strategic international and NATO allies; the AN/ALQ-131(V) electronic countermeasures pod; the LR-100 high-performance radar warning receiver (RWR)/electronic support measures (ESM)/electronic intelligence (ELINT) receiver system; the U.S. Army�� STARLite Synthetic Aperture Radar for Unmanned Aerial Vehicles (UAVs); the U.S. Army Vehicle Intercom Systems (VIC-3 and VIC-5); the U.S. Army Next Generation Automated Test System (NGATS); the U.S. Air Force Joint Threat Emitter (JTE) training range system; and the Vehicle and Dismount Exploitation Radar (VADER) system that enable airborne platforms to track individual persons or vehicles.

Naval & Marine Systems delivers products and services to defense, civil, and commercial customers supporting smart navigation, shipboard radar surveillance, ship control, mac! hinery co! ntrol, integrated combat management systems for naval surface ships, high-resolution undersea sensors (for mine hunting, situational awareness, and other applications), unmanned marine vehicles, shipboard missile and encapsulated payload launch systems, propulsion and power generation systems, and nuclear reactor instrumentation and control. Key products include Integrated Bridge and Navigation Systems, Voyage Management System, Integrated Platform Management Systems, Integrated Combat Management System, AN/WSN-7 Inertial Navigator, anti-ship missile defense and surveillance radars (Cobra Judy, AN/SPQ-9B, AN/SPS-74), propulsion equipment, missile launch, and sonar systems for the Virginia-class submarine, and launch system support for the Ohio-class submarine.

Navigation Systems delivers products and services to defense, civil, and commercial customers supporting situational awareness, inertial navigation in all domains (air, land, sea, and space), embedded Global Positioning Systems, Identification Friend or Foe (IFF) systems, acoustic sensors, cockpit video monitors, mission computing, and integrated avionics and electronics systems. Key products include the Integrated Avionics System, the AN/TYQ-23 Aircraft Command and Control System, Fiber Optic Acoustic Sensors, and a robust portfolio of inertial sensors and navigation systems. Targeting Systems delivers products and services supporting airborne combat avionics (fire control radars, multi-function apertures and pods), airborne electro-optical/infrared targeting systems, and laser/electro-optical systems including hand-held, tripod-mounted, and ground or air vehicle mounted systems. Key products include fire control radars for the B-1B, F-16 (worldwide), F-22 U.S. Air Force, and F-35; AN/APN-241 navigation/weather radar; the AN/AAQ-28(V) LITENING family of targeting pods; Distributed Aperture EO/IR systems; and the Lightweight Laser Designator Rangefinder (LLDR). In addition, the Electronic Systems segment also includes the Advanced Co! ncepts & ! Technologies Division (AC&TD), which develops next-generation systems and architectures.

Information Systems

Information Systems is a provider of advanced solutions for the DoD, national intelligence, federal civilian, state and local agencies, and commercial and international customers. Products and services focus on the fields of command, control, communications, computers (C4) and intelligence; airborne reconnaissance; intelligence processing; air and missile defense; decision support systems; cybersecurity; information technology; and systems engineering and integration. The segment consists of three business areas: Defense Systems; Intelligence Systems, and Civil Systems. Defense Systems is a provider of net-enabled Battle Management, C4 Intelligence, Surveillance, and Reconnaissance (C4ISR) systems, decision superiority, and mission-enabling solutions and services in support of the national defense and security of our nation and its allies. Defense Systems is a developer and integrator of many of the DoD�� programs-of-record, particularly for command and control (C2) and communications for the U.S. Air Force, U.S. Army, U.S. Navy, and Joint Forces. Major products and services include C4ISR Integration, Mission Systems Integration, Military Communications and Networks, Battle Management C2 and Decision Support Systems, Tactical and Operational C2, Ground and Maritime Combat Systems, Air and Missile Defense, Combat Support Solutions and Services, Enterprise Infrastructure and Applications, Defense Logistics Systems, Identity Management and Biometric Solutions, Cloud Computing, Maritime Mission Systems and Force and Critical Infrastructure Protection. Systems are installed in operational and command centers worldwide and across all DoD services and joint commands.

Intelligence Systems is focused on the delivery of intelligence-related systems and services to the United States Government and the international security community. Intelligence Systems focuses ! on missio! n areas, including Airborne Intelligence, Signals Intelligence (SIGINT) Systems, Cybersecurity, Geospatial Intelligence, Pervasive Intelligence, Surveillance and Reconnaissance (ISR), Ground Systems, Multi-Source Intelligence Data Fusion, and Dynamic Cyber Defense. Its offerings include intelligence sensing, processing, exploitation and dissemination systems, extremely Large-Scale Data Information Management, Intelligence and Prime Systems Integration, Knowledge Discovery Processes, ISR/Communications Quick Reaction Capability Solutions, Sensor Systems, Support to Special Operations, Cyber-SIGINT Mission Management/Multi-Intelligence, Language Services/Intelligence Analysis, Cyber Exploitation, Satellite Ground Stations, Weather Services, Geospatial Systems, Product Generation and Dissemination, Counter Narco-Terrorism, Drug Enforcement Operations, Geo-Intelligence Tradecraft Training, Enterprise Information Technology, Ground-Based Sensing, Studies and Analysis, Sustainment, Operations and Maintenance. Civil Systems provides specialized information systems and services in support of critical civilian government missions, such as homeland security, health, cybersecurity, civil financial, law enforcement and public safety. Primary customers are federal civilian agencies with some state and local and international customers. Civil Systems develops and implements solutions that combine a deep understanding of civil government domains with core expertise in prime systems integration, enterprise applications development, and high value information technology service, including cybersecurity, advanced networking and cloud computing.

Technical Services

Technical Services is a provider of logistics, infrastructure, and sustainment support, while also providing an array of modernization, high technology, and training and simulation services. The segment consists of three business areas: Defense and Government Services; Training Solutions; and Integrated Logistics and Modernization. De! fense and! Government Services provides maintenance, repair, and overhaul (MRO) of combat vehicles, engineering and high technology services for nuclear security and space missions, civil engineering work, military range work, launch services, and range-sensor-instrumentation operations. The division�� customer base includes the United States Army, Department of Energy, the DoD, NASA, and the intelligence community. Training Solutions provides training to senior military leaders, international and peacekeeping forces. The division designs and develops future conflict training scenarios, and provides warfighters and allies with live, virtual, and constructive training programs. The division offers training applications ranging from battle command to professional military education. Primary customers include the DoD, Department of State, and Department of Homeland Security. Integrated Logistics and Modernization provides life cycle product and weapon system sustainment and modernization. The division is focused on providing direct support to warfighters and delivering aircraft MRO; subsystem MRO and modernization; supply chain management services, warehousing and inventory transportation, field services and mobilization, sustaining engineering, maintenance, repair and overhaul supplies, and on-going weapons maintenance and technical assistance. The division specializes in quick reaction capability and deployed operations in support of customers. Primary customers include the DoD, as well as international military and commercial customers.

The Company competes with Lockheed Martin Corporation, The Boeing Company, Raytheon Company, General Dynamics Corporation, L-3 Communications Corporation, SAIC, BAE Systems Inc., EADS and Finmeccanica SpA.

Advisors' Opinion:

• [By Rich Smith]

  The contractor in charge of the project, Vinell Arabia, isn't exactly a household name here. But as it turns out, Vinell is a subsidiary of marquee defense contractor Northrop Grumman (NYSE: NOC  ) .

• [By Rich Smith]

  Christmas came early to the Pentagon this week, when on Friday, Northrop Grumman (NYSE: NOC  ) delivered its first new MQ-8C "upgraded" Fire Scout unmanned helicopter to the U.S. Navy.

• [By Katie Spence]

  Moreover, thanks to Northrop Grumman's (NYSE: NOC  ) Global Hawk, Boeing's Ground-Based Interceptors, Raytheon's (NYSE: RTN  ) SM-3 defense system, and Lockheed's Aegis Missile Defense System, America's powerhouse of missile technology would be pitted against a nation that's still learning how to fire a rocket -- think of it as a Chihuahua trying to fight a German shepherd: One bite, and the Chihuahua's a goner. �

• [By Russ Krull]

  Northrop Grumman (NYSE: NOC  ) launched $2.85 billion in debt split between five-, 10-, and 30-year tranches. The money is being used for the early redemption of notes maturing in 2014 and 2015. There's only $850 million outstanding between the two issues targeted for early redemption, so there will be plenty of money left for the "debt repayment, share repurchases, pension plan funding, acquisitions and working capital" mentioned in the company's press release.

Best Defense Stocks To Buy For 2015: Hexcel Corp (HXL)

Hexcel Corporation (Hexcel), incorporated in 1948, is a composites company. The Company develops, manufactures and markets composites, including carbon fibers, reinforcements, prepregs, honeycomb, matrix systems, adhesives and composite structures, for use in Commercial Aerospace, Space and Defense, and Industrial Applications. Its products are used in a variety of end applications, such as commercial and military aircraft, space launch vehicles and satellites, wind turbine blades, automotive, bikes, skis and a variety of other industrial applications. Hexcel has two segments: Composite Materials and Engineered Products. The Composite Materials consists of carbon fiber, reinforcements for composites, honeycomb core and matrix product lines. The Engineered Products consists of composite structures and specially machined honeycomb product lines.

Composite Materials

The Composite Materials segment manufactures and markets carbon fibers, fabrics and specialty reinforcements, prepregs, structural adhesives, honeycomb, composite panels, molding compounds, polyurethane systems and laminates that are incorporated into many applications, including military and commercial aircraft, wind turbine blades, recreational products and other industrial applications. HexTow carbon fibers are manufactured for sale to third-party customers, as well as for its own use in manufacturing certain reinforcements and composite materials. Carbon fibers are woven into carbon fabrics, used as reinforcement in conjunction with a resin matrix to produce pre-impregnated composite materials. Carbon fibers is also used in filament winding, hand layup, automatic tape layup and advanced fiber placement to produce finished composite components. Its carbon fibers��product applications include structural components for commercial and military aircraft, space launch vehicles, and certain other applications, such as recreational and industrial equipment.

Industrial fabrics and specialty reinforcements are ma! de from a variety of fibers, including carbon, aramid and other polymers, several types of fiberglass, quartz, ceramic and other specialty fibers. These reinforcements are used in the production of prepregs and other matrix materials used in primary and secondary structural aerospace applications, such as wing components, horizontal and vertical stabilizer components, fairings, radomes and engine nacelles, as well as overhead storage bins and other interior components. Hexcel�� reinforcements are also used in the manufacture of a variety of industrial and recreational products, such as wind energy blades, automotive components, boats, surfboards, skis and other sporting goods equipment.

HexPly prepregs are manufactured for sale to third-party customers and for internal use by its engineered products segment in manufacturing composite laminates and monolithic structures, including finished components for aircraft structures and interiors. Prepregs are manufactured by combining reinforcement fabrics or unidirectional fibers with a resin matrix to form a composite material with structural properties not present in either of the constituent materials. Reinforcement fabrics used in the manufacture of prepregs include glass, carbon, aramid, quartz, ceramic and other specialty reinforcements. Resin matrices include bismaleimide, cyanate ester, epoxy, phenolic, polyester, polyimide and other specialty resins.

Other fiber reinforced matrix developments include HexMC, a form of quasi-isotropic carbon fiber prepreg that enables small to medium sized composite components to be mass produced. HexTOOL is a specialized form of HexMC for use in the construction of high temperature composite tooling. HexFIT film infusion material is a product that combines resin films and dry fiber reinforcements in production and enables the manufacture of contoured composite structures, such as wind turbine blades.

Polymer matrix materials are sold in bulk and film form for use in direct pro! cess manu! facturing of composite parts. Resins can be combined with fiber reinforcements in manufacturing processes, such as resin transfer molding (RTM), resin film infusion (RFI) or vacuum assisted resin transfer molding (VARTM) to produce composite components for both aerospace and industrial applications. Hexcel manufactures and markets a range of Redux film and paste adhesives. These structural adhesives, which bond metal to metal and composites and honeycomb structures, are used in the aerospace industry and for many industrial applications.

HexWeb honeycomb is a cellular structure consisting of nested hexagonal cells. The product is similar in appearance to a cross-sectional slice of a beehive. It can also be manufactured in asymmetric cell configurations for more specialized applications. Honeycomb is primarily used as a lightweight core material and acts as an energy absorber. When sandwiched between composite or metallic facing skins, honeycomb increases the stiffness of the structure, while adding very little weight. The Company produces honeycomb from a number of metallic and non-metallic materials. Its metallic honeycomb is made from aluminum and is available in a selection of alloys, cell sizes and dimensions. Non-metallic materials used in the manufacture of honeycomb include fiberglass, carbon fiber, thermoplastics, non-flammable aramid papers, aramid fiber and other specialty materials. During the year ended December 31, 2011, revenues for the Composite Materials segment to third-party customers represented approximately 77% of its total revenues.

Engineered Products

The Engineered Products segment manufactures and markets composite structures and precision machined honeycomb parts for use in the aerospace industry. Composite structures are manufactured from a variety of composite and other materials, including prepregs, honeycomb, structural adhesives and advanced molding materials, using such manufacturing processes, as autoclave processing, multi-axis nu! merically! controlled machining, heat forming, compression molding and other composite manufacturing techniques. During 2011, revenues for the Engineered Products segment to third-party customers represented approximately 23% of its total revenues. The Engineered Products business unit has a 50% ownership interest in a Malaysian joint venture, Asian Composites Manufacturing Sdn. Bhd.

Advisors' Opinion:

• [By Seth Jayson]

  Hexcel (NYSE: HXL  ) reported earnings on July 22. Here are the numbers you need to know.

  The 10-second takeaway
  For the quarter ended June 30 (Q2), Hexcel met expectations on revenues and beat expectations on earnings per share.

• [By John Persinos]

  The standout stocks in this segment are Hexcel Corp. (HXL), the leading producer of carbon composites, and Allegheny Technologies (ATI), which dominates the market in titanium.

• [By Rich Smith]

  This series, brought to you by Yahoo! Finance, looks at which upgrades and downgrades make sense, and which ones investors should act on. Today, our headlines include a pair of aerospace upgrades for European Aeronautic Defence and Space Company (NASDAQOTH: EADSY  ) and Hexcel (NYSE: HXL  ) . But it's not all good news, so let's start off by finding out why.

Best Defense Stocks To Buy For 2015: United Technologies Corporation(UTX)

United Technologies Corporation provides technology products and services to the building systems and aerospace industries worldwide. The company?s Otis segment designs, manufactures, sells, and installs passenger and freight elevators, escalators, and moving walkways, as well as provides maintenance and repair services. Its Carrier segment offers heating, ventilating, air conditioning, and refrigeration systems, controls, services, and energy-efficient products for residential, commercial, industrial, and transportation applications. The company?s UTC Fire and Security segment provides electronic security products comprising intruder alarms, and access control and video surveillance systems; fire safety products, such as specialty hazard detection and fixed suppression products, fire extinguishers, fire detection and life safety systems, and other firefighting equipment; systems integration, video surveillance, installation, maintenance, and inspection services; and mon itoring, response, and security personnel services. Its Pratt and Whitney segment supplies aircraft engines for the commercial, military, business jet, and general aviation markets; industrial gas turbines; geo thermal power systems; and space propulsion systems, as well as provides fleet management, maintenance, repair, and overhaul services. The company?s Hamilton Sundstrand segment supplies aerospace products, such as power generation, management and distribution, flight control, engine control, environmental control, auxiliary power units, and propeller systems; and industrial products, including air compressors, metering pumps, and fluid handling equipment under the Sullair, Sundyne, and Milton Roy names. Its Sikorsky segment manufactures military and commercial helicopters, as well as offers aftermarket helicopter and aircraft parts and services. United Technologies Corporation was founded in 1934 and is based in Hartford, Connecticut.

Advisors' Opinion:

• [By Matt Thalman]

  United Technologies (NYSE: UTX  ) also announced earnings before the opening bell this morning and beat analysts' estimates of $1.58 per share with $1.70, while revenue came in slightly below expectations. But shares rose 2.95% today on news that the company was raising full-year guidance. Management expects to have sales of $64 billion for 2013, with earnings per share somewhere in the range of $6.00 to $6.15, which is $0.15 higher than the previous estimate range the company gave. While that may sound like a tall order, the company's aircraft unit is really performing well, and as we continue to see increased sales from Boeing�and Airbus, investors shouldn't have any doubt that the company can continue performing at a high level. �

Best Defense Stocks To Buy For 2015: Esterline Technologies Corp (ESL)

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

Avionics & Controls

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

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

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

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

Sensors & Systems

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

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

Advanced Materials

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

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

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

Advisors' Opinion:

• [By Ben Levisohn]

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

Apple Jumps on Earnings Beat, Stock Split

Updated from 4:08 p.m. to include comments from the conference call and updated share price.

NEW YORK (TheStreet) -- Apple (AAPL) shares jumped after the tech giant posted fiscal second-quarter earnings that beat Wall Street estimates, and announced a 7 for 1 stock split.

Apple reported second-quarter earnings of $11.62 a share, generating $45.6 billion in revenue. The company shipped 43.7 million iPhones, 16.4 million iPads, and shipped 4.1 million Macs during the quarter. Gross margin, a highly watched level for Apple, came in at 39.3%. On the conference call, Apple noted there are more than 800 million iTunes accounts, up from a previous number of around 600 million.

Apple CEO Timothy D. Cook noted on the call that Apple has sold more than 20 million Apple TV set-top boxes since the product was introduced. For the fiscal third quarter, Apple said it expects revenue between $36 billion and $38 billion, with gross margins between 37% and 38%. Operating expenses will be between $4.4 billion and $4.5 billion, and it will have a tax rate of 26.1%. Shares were soaring in after-hours trading, gaining 7.7% to $564.99.
WATCH: More market update videos on TheStreet TV | More videos from Kori Hale "We're very proud of our quarterly results, especially our strong iPhone sales and record revenue from services," said Cook in the earnings press release. "We're eagerly looking forward to introducing more new products and services that only Apple could bring to market." "We generated $13.5 billion in cash flow from operations and returned almost $21 billion in cash to shareholders through dividends and share repurchases during the March quarter," said Peter Oppenheimer, Apple's CFO, in the release. "That brings cumulative payments under our capital return program to $66 billion." Analysts surveyed by Thomson Reuters were expecting the Cupertino, Calif.-based Apple to report earnings of $10.18 a share on $43.53 billion in revenue, as Apple continues to promise new products and new categories. Apple also announced that it was upping its capital allocation program to over $130 billion by the end of calendar year 2015. As part of the program, the Board increased its share repurchase authorization to $90 billion from $60 billion, and boosted its quarterly dividend by 8% to $3.29 a share. "The Company also plans to increase its dividend on an annual basis. With annual payments of $11 billion, Apple is among the largest dividend payers in the world," the company said in the release. From August 2012 through March 2014, Apple has spent $66 billion in cash on its capital return program. Apple will access the public debt markets this year to help paying for the program, and raise an "amount of term debt similar to what the Company raised during 2013." "We are announcing a significant increase to our capital return program," Cook said, when discussing the allocation program. "We're confident in Apple's future and see tremendous value in Apple's stock, so we're continuing to allocate the majority of our program to share repurchases. We're also happy to be increasing our dividend for the second time in less than two years." "We believe our current stock price does not reflect the true value of the company," both Cook and new CFO Luca Maestri said on the call. The Board of Directors also announced a seven-for-one stock split, effective June 2, 2014. Shares will will begin trading on a split-adjusted basis on June 9, 2014. On the conference call, Cook noted Angela Ahrendts, the former CEO of Burberry, would be joining Apple's executive team next week, as she helps to lead Apple's retail stores.

Shares of Apple closed the regular session lower, falling 1.3% to close at $524.75. --Written by Chris Ciaccia in New York >Contact by Email. Follow @Chris_Ciaccia

Stock quotes in this article: AAPL 

Best Restaurant Stocks To Buy For 2015

Before Tuesday’s opening bell, fast food giant McDonald’s Corporation (MCD) reported lower first quarter earnings, as last year’s earnings were impacted by a tax benefit.�

MCD’s Earnings in Brief

MCD posted Q1 earnings of�$1.205 billion, or $1.21 per share, down from $1.270 billion, or $1.26 per share, a year ago.� Revenue rose to�$6.70 billion from $6.61 billion last year. On average, analysts expected to see earnings of $1.24 per share and�$6.73 billion in revenue.

CEO Commentary

Don Thompson, President and CEO of MCD, noted: “By leveraging a deeper understanding of what our customers want with the power of our business�model, our investments in restaurant capabilities and modernization, and our hard-earned competitive advantages, we will grow McDonald’s business and deliver enduring profitable growth over the long term. As we begin the�second quarter, global comparable sales for the month of April are expected to be modestly positive.”

Best Restaurant Stocks To Buy For 2015: Country Style Cooking Restaurant Chain Co Ltd (CCSC)

Country Style Cooking Restaurant Chain Co., Ltd. (CSC Cayman), incorporated on August 14, 2007, is a quick service restaurant chain in China. The Company offers delicious, everyday Chinese food. The Company conducts all of its restaurant operations through CSC China and its subsidiaries. As of June 30, 2012, it had 256 restaurants, including 124 restaurants in Chongqing municipality and 85 restaurants in Sichuan province.

Chongqing municipality and Sichuan province cover a region of 110 million people in Southwest China. CSC Cayman directly operates all of its restaurants. Its standard menu features its main dishes prepared in the Sichuan style, as well as a selection of other dishes, appetizers, desserts and beverages. The Company periodically offers new dishes and seasonal menu selections.

The Company competes with McDonald��, KFC and Yoshinoya.

Advisors' Opinion:

• [By CRWE]

  Country Style Cooking Restaurant Chain Co., Ltd (NYSE:CCSC), a fast-growing quick service restaurant chain in China, plans to release its unaudited second quarter 2012 financial results on Tuesday, August 14, 2012, after the market closes.

Best Restaurant Stocks To Buy For 2015: DineEquity Inc (DIN)

DineEquity, Inc., incorporated on May 07, 1976, owns franchise and operate two restaurant concepts: Applebee's Neighborhood Grill & Bar, (Applebee's), in the bar and grill segment of the casual dining category of the restaurant industry, and International House of Pancakes (IHOP), in the family dining category of the restaurant industry. As of December 31, 2012, the franchise operations segment consisted of 2,011 restaurants operated by Applebee's franchisees in the United States, one United States territory and 15 foreign countries and 1,569 restaurants operated by IHOP franchisees and area licensees in the United States, two United States territories and five foreign countries. As of December 31, 2012, the Company restaurant operations segment consisted of 23 Applebee's Company-operated restaurants, 10 IHOP Company-operated restaurants and two IHOP restaurants reacquired from franchisees and operated by IHOP on a temporary basis until refranchised. Financing operations revenue primarily consists of interest income from the financing of franchise fees and equipment leases, as well as sales of equipment associated with refranchised IHOP restaurants and a portion of franchise fees for restaurants taken back from franchisees not allocated to IHOP intellectual property. In October 2012, it completed the refranchising program and completed the transitioning to a 99% franchised restaurant system.

Applebee's

The Company develops, franchises and operates restaurants in the bar and grill segment of the casual dining category of the restaurant industry under the name Applebee's Neighborhood Grill & Bar. As of December 31, 2012, 68 franchise groups operated 2,011 of these restaurants and 23 restaurants were Company-operated. The restaurants were located in 49 states, one United States territory and 15 countries outside of the United States. During the year ended December 31, 2012, 20 domestic franchise restaurants opened, six domestic franchise restaurants closed. 154 Company-operated! restaurants were franchised. The number of restaurants held by an individual franchisee ranges from one to 438 restaurants. As of December 31, 2012, it is focusing on international franchising primarily in Canada, Mexico, Central and South America, and the Mediterranean/Middle East. As of December 31, 2012, there were 149 international Applebee's franchise restaurants. During 2012, 14 international franchise restaurants opened and 13 international franchise restaurants closed.

IHOP

The Company develops franchises and operates restaurants in the family dining category of the restaurant industry under the names IHOP and International House of Pancakes. As of December 31, 2012 there were a total of 1,581 IHOP restaurants of which 1,404 were subject to franchise agreements, 165 were subject to area license agreements, 10 were Company-operated restaurants and two restaurants were reacquired from franchisees and operated by IHOP on a temporary basis. The Company owns and operates 10 IHOP restaurants in the Cincinnati market area primarily to test new remodel programs, operating procedures, products, technology, cooking platforms and service models. IHOP restaurants are located in all 50 states of the United States, the District of Columbia, Puerto Rico and the United States Virgin Islands and internationally in Canada, the Dominican Republic, Guatemala, Mexico and the United Arab Emirates. As of December 31, 2012, the area licensee for the state of Florida and certain counties in Georgia operated or sub-franchised a total of 152 IHOP restaurants, and the area licensees for the province of British Columbia, Canada operated or sub-franchised a total of 13 IHOP restaurants. As of December 31, 2012, the Company had signed commitments and options from franchisees to build 245 IHOP restaurants over the next 17 years, comprised of 5 restaurants under single-restaurant or non-traditional development agreements, 120 restaurants under multi-restaurant development agreements and 63 restaurants! under in! ternational development agreements. As of December 31, 2012, there were 1,525 domestic IHOP franchise and area license restaurants. During 2012, its franchisees and area licensees opened 40 domestic franchise restaurants and 17 domestic franchise and area license restaurants were closed. As of December 31, 2012, there were 44 international IHOP franchise and area license restaurants. During 2012, its franchisees opened eight international franchise restaurants and no restaurants were closed.

The Company competes with Chili's, T.G.I. Friday's, Ruby Tuesday's, Denny's, Cracker Barrel Old Country Store and Bob Evans Restaurants.

Advisors' Opinion:

• [By Rick Aristotle Munarriz]

  Alamy Fried chicken and waffles is a staple menu item at countless soul food and comfort food restaurants, but that's not stopping Burger King (BKW) from trying to give the meal a fast-food spin. Burger King is testing a new sandwich in the Northeast that takes the breaded chicken patty used in its Classic Crispy Chicken Sandwich from its King Deals Value Menu and replaces the bun with a split waffle. Burger King's Chicken & Waffle Sandwich isn't as hearty as the meal that it's based on. It's selling for as little as $2.29. But the chain's latest attempt to turn heads with a unique menu item will at least attract curious nibblers if it does decide to broaden the offering across the country. Waffling About Burger King isn't the first popular chain to attempt to reinvent this classic dish. As Nation's Restaurant News points out, last summer, Popeyes Louisiana Kitchen (PLKI) offered Chicken Waffle Tenders -- consisting of chicken tenders dipped in a vanilla maple-scented waffle batter, served with a honey maple dipping sauce. DineEquity's (DIN) IHOP did it three years ago by combining its chicken strips with Belgian waffle quarters. Yum! Brands (YUM) tried to breathe new life into its breakfast business last summer by testing a Waffle Taco -- an egg, sausage, and waffle breakfast sandwich. Even if it doesn't succeed -- and some of the early taste tests haven't been very flattering to the chain's new sandwich -- it's at least comforting to see that Burger King isn't just copying McDonald's (MCD) the way that it has for the past couple of years. Burger King followed McDonald's in offering fancy coffee drinks, fresh fruit smoothies, and popcorn chicken. It has gone on to roll out doppelgangers of the Egg McMuffin and McRib sandwiches. In November, it introduced the Big King, which any patron will quickly recognize as a body double to the Big Mac. Then again, it's not as if following McDonald's lead is such a clever idea right now. The world's largest re

• [By CNBC]

  Tony Tribble, Invision/AP Forget about Bloomin' Onions or boneless wings, for many consumers, the choice of where to dine often comes down to a different factor: which restaurant has the best booze. "Alcoholic beverages can be a key driver of traffic, differentiation, and loyalty," said David Decker, president of Consumer Edge Insight. According to the firm, two factors that keep customers coming back are "selection" and "pricing." Consumer Edge Insight recently surveyed restaurant customers to find out which casual-dining spots generated the most loyalty with their alcoholic beverages. Taking the top spot for "selection" was Buffalo Wild Wings (BWLD), with 29 percent of those surveyed saying they were "most likely to visit it most often due to its good selection of alcoholic beverages." Applebee's (DIN) took the second spot, with 24 percent, and Outback Steakhouse (BLMN) and T.G.I. Friday's tied for third place with 22 percent each. Prices also keep customers coming back to Buffalo Wild Wings. When asked which casual-dining brand they were "most likely to visit most often due to its good prices of alcoholic beverages," Buffalo Wild Wings came out on top with 30 percent. Chili's (EAT) was No. 2 at 23 percent, and Ruby Tuesday (RT) was third with 22 percent. Buffalo Wild Wings has always made alcohol a part of its experience, even making it part of its tagline: "Wings.Beer.Sports." The chain is the No. 1 account for more than 50 different beer brands and recently launched Game Changer, a new beer in a partnership with Redhook Brewery. Priced between cheaper domestic lagers and pricier craft beers, Game Changer became the fourth-most-popular draft beer at company-owned locations within two weeks of its release. "Among casual-dining restaurants, Buffalo Wild Wings is seeing the greatest positive effect in terms of building customer loyalty with its alcohol offerings," Decker said. "There are many steps other restaurants can take to improve their alcoho

• [By Victor Selva]

  As outlined in this article, the company underperformance in its core brands, Red Lobster and Olive Garden resulted in lower sales in the last quarter. Darden was not the only one facing trouble, other restaurants such as Dine Equity (DIN) and Yum! Brands (YUM) have also fallen short. On the other hand, we see we think Darden can continue to get benefitted from the acquisitions.

Top 10 Healthcare Equipment Companies To Own In Right Now: Einstein Noah Restaurant Group Inc (BAGL)

Einstein Noah Restaurant Group, Inc. (ENRGI), incorporated on October 21, 1992, is an owner/operator, franchisor and licensor of bagel specialty restaurants in the United States. ENRGI operates under the Einstein Bros. Bagels (Einstein Bros.), Noah�� New York Bagels (Noah��) and Manhattan Bagel Company (Manhattan Bagel) brands. ENRGI operates in three business segments: the Company-owned restaurants segment, the manufacturing and commissary segment, and the franchise and license segment. The Company-owned restaurants segment includes the restaurants that it owns. The manufacturing and commissary segment produces and distributes bagel dough and other products to its Company-owned restaurants, licensees and franchisees and other third parties. The franchise and license segment earns royalties and other fees from the use of trademarks and operating systems developed for the Einstein Bros., Noah�� and Manhattan Bagel brands.

During the fiscal year ended January 1, 2013 (fiscal 2012), ENRGI acquired eight restaurants and opened an additional 15 Company-owned restaurants. It closed one Company-owned restaurant during fiscal 2012. On January 31, 2012, the Company sold a Company-owned restaurant. As of January 1, 2013, it had 816 restaurants in 39 states and in the District of Columbia. In January 2013, the Company opened an Einstein Bros. franchise in Montana. Its product offerings include fresh-baked bagels and other bakery items baked onsite, ma de-to-order breakfast and lunch sandwiches on a range of bagels, breads or wraps, gourmet soups and salads, assorted pastries, premium coffees and an assortment of snacks. Its manufacturing and independent distribution network delivers ingredients that are delivered fresh to its restaurants.

Company-owned restaurants

Einstein Bros. offers a menu that provides food for breakfast and lunch, including fresh-baked bagels and hot breakfast sandwiches, freshly prepared lunch sandwiches, cream cheese and other spreads, specia! lty coffees and teas, soups, salads and other menu offerings. Noah�� is a neighborhood-based bakery/deli restaurant that serves fresh-baked bagels, hot breakfast sandwiches, made-to-order deli-style sandwiches, cream cheese and other spreads, specialty coffees and teas, soups, salads and other menu offerings. Manhattan Bagel provides a traditional New York style boil and baked bagel. Manhattan Bagel also serves a range of grilled sandwiches, freshly made deli sandwiches, freshly prepared breakfast sandwiches, soups, and a range of other fresh-baked sweets. Similar to Einstein Bros. and Noah��, Manhattan Bagel also features a line of fresh brewed coffees and specialty coffee/espresso beverages. During fiscal 2012, ENRGI generated approximately 90% of its total revenue from restaurant sales at its Company-owned restaurants.

Manufacturing and Commissaries

ENRGI operates a bagel dough manufacturing facility in Whittier, California and has contracts with two suppliers to produce bagel dough and sweets to the specifications. These facilities provide frozen dough, partially-baked frozen bagels and fully baked sweets for its Company-owned restaurants, franchisees and licensees. These operations provide the restaurants with food products, such as sliced meats, cheeses, and/or certain salad ingredients. It has recipes and production processes for the bagel dough, cream cheese and coffee. Frozen, or partially baked and frozen, bagel dough is shipped to all of its Company-owned, franchised and licensed restaurants where the dough is then baked onsite. Its purchases other ingredients used in the restaurants, such as meat, lettuce, tomatoes and condiments, from a select group of third party suppliers.

Franchise and Licensing

ENRGI offers Einstein Bros. franchises to qualified area developers. As of January 1, 2013, the Company was registered to offer Einstein Bros. franchises in 49 states and the District of Columbia. It also has a franchise base in the Manhatt! an Bagel ! brand. Its licensees are located primarily in colleges and universities, hospitals, airports and military bases. As of February 25, 2013, it had 28 development agreements in place for 136 total restaurants, 34 of which have already opened. During fiscal 2012, it opened 13 franchised locations and 27 licensed locations. During fiscal 2012, approximately 3% of its total revenue was generated by the Company�� franchise and license operations.

Advisors' Opinion:

• [By John Udovich]

  At the end of last week, small cap sandwich stock Potbelly Corp (NASDAQ: PBPB) had a delicious surge of 120% for its IPO���meaning its probably a good idea to see whether its still worth getting in on the action plus take a look at the performance of peers�Cosi Inc (NASDAQ: COSI), Panera Bread Co (NASDAQ: PNRA) and Einstein Noah Restaurant Group, Inc (NASDAQ: BAGL) as Subway remains private. I should mention that competing with Subway in the sandwich business is a tall order as they have 40,229 restaurants in 102 countries and territories as of early September���making them the�largest single-brand restaurant chain and the largest restaurant operator globally. However, Potbelly Corp and its peers Cosi Inc, Panera Bread Co and Einstein Noah Restaurant Group aren�� slugging it out directly with Subway.

• [By MARKETWATCH]

  SAN FRANCISCO (MarketWatch) -- Wall Street hedge-fund investor David Einhorn was active in the last quarter of 2013, taking new stakes in technology and energy companies, while trimming existing holdings in insurer Aetna (AET) , NCR Corp (NCR) and WPX Energy (WPX) , according to an SEC filing Friday. Einhorn's Greenlight Capital picked up stakes in Anadarko Petroleum (APC) , BP (BP) , McDermott Intl. (MDR) , Micron Technolgy (MU) and Take-Two Interactive (TTWO) , according to the latest 13F filing. He trimmed stakes in Aetna, Einstein Noah (BAGL) and WPX Energy, according to the filing.

Best Restaurant Stocks To Buy For 2015: Noodles & Co (NDLS)

Noodles & Company, incorporated on December 19, 2002, is a casual restaurant concept offering lunch and dinner. The Company offers noodle and pasta dishes, staples of many cuisines, with the goal of delivering fresh ingredients and flavors globally under one roof from Pad Thai to Mac & Cheese. The Company�� globally inspired menu includes a variety of cooked-to-order dishes, including noodles and pasta, soups, salads and sandwiches, which are served on china by its friendly team members.

As of May 28, 2013, including the 16 Company owned restaurants and one franchise restaurant opened in 2013. The Company opened 39 new company owned restaurants and six franchise restaurants. In 2012, the Company began using Your World Kitchen to describe the breadth of its offering and its customers' dining experience.

Advisors' Opinion:

• [By Jason Moser]

  In today's "Ask a Fool" segment,�Motley Fool One�analyst Jason Moser fields a question from a Fool who asks: "Is Noodles & Company (NASDAQ: NDLS  ) a long-term investment?" There's no question Noodles and Company's IPO has the stock headed in the right direction. Jason offers his take on the situation, and what investors should look out for.

• [By Alyce Lomax]

  However, maybe a huge part of the problem is continuing momentum toward quick-service restaurants with more upscale images or brands. For just a little more money, consumers can get a quick meal that's a bit healthier or includes fresher, whole ingredients at restaurants such as Chipotle Mexican Grill (NYSE: CMG  ) , Panera Bread (NASDAQ: PNRA  ) , and Noodles & Co. (NASDAQ: NDLS  ) .

• [By Andrew Marder]

  I've come to loathe precedents. Nothing is more annoying than someone telling you that their favorite new book is the next Harry Potter�or that the movie they just saw is going to be the next Godfather. So it shouldn't be a surprise that I'm not overly keen on the selling of Noodles & Company (NASDAQ: NDLS  ) as the next Panera (NASDAQ: PNRA  ) or Chipotle (NYSE: CMG  ) or Buffalo Wild Wings (NASDAQ: BWLD  ) . Instead, maybe we can judge the business on its merits, instead of on the success of restaurants that came before it.

• [By Roberto Pedone]

  Another stock that's starting to move within range of triggering a near-term breakout trade is Noodles (NDLS), which develops and operates fast casual restaurants that serves noodle and pasta dishes, soups, salads and sandwiches. This stock is off to a decent start so far in 2013, with shares up 12.2%.

  If you look at the chart for Noodles, you'll notice that this stock recently pulled back from $49.15 to $38.90 a share. During that pullback, shares of NDLS were marking lower highs and lower lows, which is bearish technical price action. That said, shares of NDLS have now started to stabilize below $39 a share and the stock is starting to form a near-term uptrend. That uptrend is quickly pushing NDLS within range of triggering a near-term breakout trade.

  Traders should now look for long-biased trades in NDLS if it manages to break out above some near-term overhead resistance at $42.73 a share with high volume. Look for a sustained move or close above that level with volume that hits near or above its three-month average action of 923,754 shares. If that breakout triggers soon, then NDLS will set up to re-test or possibly take out its next major overhead resistance levels at $45 to $47 a share. Any high-volume move above those levels will then give NDLS a chance to take out its all-time high of $51.97 a share.

  Traders can look to buy NDLS off any weakness to anticipate that breakout and simply use a stop that sits right below some key near-term support levels at $39.85 or $38.90 a share. One can also buy NDLS off strength once it takes out $42.73 with volume and then simply use a stop that sits a comfortable percentage from your entry point.

Best Restaurant Stocks To Buy For 2015: Darden Restaurants Inc (DRI)

Darden Restaurants, Inc. (Darden), incorporated in March 1995, is a company owned and full-service restaurant company. As of May 27, 2012, the Company operated through subsidiaries 1,994 restaurants in the United States and Canada. In the United States, it operated 1,961 restaurants in all 50 states, including 677 Red Lobster, 786 Olive Garden, 386 LongHorn Steakhouse, 46 The Capital Grille, 30 Bahama Breeze, 23 Seasons 52, eight Eddie V's Prime Seafood and three Wildfish Seafood Grille restaurants, and two test synergy restaurants, which house both a Red Lobster and Olive Garden restaurant in the same building. In Canada, the Company operated 33 restaurants, including 27 Red Lobster and six Olive Garden restaurants. Through subsidiaries, it owns and operates all of its restaurants in the United States and Canada, except for three restaurants located in Central Florida that is owned by joint ventures it manages. On November 14, 2011, it acquired eight Eddie V's Prime Seafood restaurants and three Wildfish Seafood Grille restaurants.

As of May 27, 2012, the Company had 28 restaurants outside the United States and Canada operated by independent third parties pursuant to area development and franchise agreements, including five LongHorn Steakhouse restaurants in Puerto Rico, 22 Red Lobster restaurants in Japan, and one Red Lobster restaurant in Dubai. During fiscal year ended May 27, 2012, it opened 89 net new restaurants in the United States and Canada.

Red Lobster

Red Lobster is a full-service dining seafood specialty restaurant operator in the United States. It offers a menu featuring fresh fish, shrimp, crab, lobster, scallops and other seafood. The menu includes a variety of specialty seafood and non-seafood entrees, appetizers and desserts. Red Lobster maintains different lunch and dinner menus and different menus across its trade areas.

Olive Garden

Olive Garden is a full service dining Italian restaurant operator in the United Stat! es. Olive Garden�� menu includes a range of authentic Italian foods featuring fresh ingredients and a wine list that includes a selection of wines imported from Italy. The menu includes flatbreads and other appetizers, soups, salad and garlic bread sticks, baked pastas, sauted specialties with chicken, seafood and fresh vegetables, grilled meats, and a variety of desserts. Olive Garden also uses coffee imported from Italy for its espresso and cappuccino.

LongHorn Steakhouse

LongHorn Steakhouse restaurants are full-service establishments serving both lunch and dinner. With locations in 35 states, primarily in the Eastern half of the United States, LongHorn Steakhouse restaurants feature a range of menu items, including signature fresh steaks, as well as salmon, shrimp, chicken, ribs, pork chops, burgers and prime rib.

The Capital Grille

The Capital Grille has locations in metropolitan cities in the United States. The Capital Grille offers seafood flown in daily and culinary specials created by its chefs. The restaurants feature a wine list offering over 350 selections, personalized service, and private dining rooms.

Bahama Breeze

Bahama Breeze restaurants bring guests the feeling of a Caribbean escape, offering the food, drinks and atmosphere found in the islands. The menu features Caribbean-inspired seafood, chicken and steaks, as well as signature specialty drinks. During fiscal 2012, it opened four Bahama Breeze restaurant.

Seasons 52

Seasons 52 is a grill and wine bar with seasonally inspired menus offering ingredients to meals that are lower in calories than comparable restaurant meals. It offers a wine list of more than 90 wines with approximately 60 available by the glass. As of May 27, 2012, there were 23 Seasons 52 restaurants in the United States.

Synergy restaurant

Synergy restaurant houses both a Red Lobster and Olive Garden restaurant in the same building, but ! with sepa! rate front doors, dining rooms and brand-specific menus. It opened a second synergy test location during fiscal 2012.

Advisors' Opinion:

• [By Wallace Witkowski]

  On the S&P 500, Darden Restaurants Inc. (DRI) �, PulteGroup Inc. (PHM) �, U.S. Steel Corp. (X) �and Apple Inc. (AAPL) �were the big gainers.

• [By DAILYFINANCE]

  Alan Diaz/AP NEW YORK -- The struggling parent company of Olive Garden and Red Lobster reported a sharply lower quarterly profit Friday and said that its president and chief operating officer will retire. Darden Restaurants (DRI) said Drew Madsen, 57, will be succeeded by the president of its specialty restaurant group, Gene Lee. The appointment is effective immediately. The company's specialty restaurant group, which includes chains such as The Capital Grille and Bahama Breeze, has performed better than the company's flagship chains. At Olive Garden, the company's biggest chain, sales fell 4 percent at restaurants open at least a year in the latest quarter. The figure fell 5.2 percent at Red Lobster. The declines came despite the company's ongoing efforts to revitalize menus and advertising to better reflect changing eating habits. In the specialty restaurant group, sales edged up 0.5 percent at restaurants open at least a year. The metric is a key gauge because it strips out the impact of newly opened and closed locations. To cut spending by about $50 million a year, the company is also reducing its workforce by between 80 to 85 positions, as well as making program cuts. A representative said the personnel cuts won't be at the restaurant level. For the three months ended Aug. 25, the company said it earned $70.2 million, or 53 cents a share. That's compared with $110.8 million, or 85 cents a share, in the year-ago period. Analysts expected a profit of 70 cents a share. Sales rose to $2.16 billion, helped by the opening of new locations. That was short of the $2.19 billion Wall Street expected, according to FactSet. Darden, based in Orlando, Fla., said Madsen will work with Lee and Darden's other executives on the transition until he retires. Madsen joined the company in 1998 as executive vice president of marketing for Olive Garden. He became COO in December 2004. Lee joined Darden in 2007. Kim Lopdrup will take over leadership of the company's speci

• [By Rick Aristotle Munarriz]

  Alamy Diners want more than Cheddar Bay biscuits these days, and no one knows this better than Red Lobster parent Darden Restaurants (DRI). The casual dining juggernaut behind Red Lobster, Olive Garden, and several smaller chains has been posting uninspiring financial results lately. We'll get another fresh snapshot when it reports quarterly results in two weeks. The last time out was a disaster. Back in September, Darden served up lower-than-expected profitability numbers as business fizzled out at its two marquee concepts. Same-restaurant sales -- an important metric for the industry as it measures how well the average eatery is holding up -- fell 4 percent at Olive Garden and 5 percent at Red Lobster. Darden's other restaurants are faring better for the most part, but it's not as if LongHorn Steakhouse, Bahama Breeze, and Capital Grille can move the needle here. Olive Garden and Red Lobster combine to account for 71 percent of Darden's business. Olive Garden is trying to liven things up by introducing a burger into its menu this month. Red Lobster may want to see what it can do to appeal to a broader audience, too. Have a Burger with Your Unlimited Breadsticks Olive Garden's Italiano Burger is rolling out across the chain this week. It's a hamburger, dolled up with prosciutto, mozzarella cheese, arugula, and marinated tomatoes. The buns are dressed up with a garlic aioli spread. Parmesan garlic fries come on the side. It's clearly Olive Garden's attempt to put an Italian spin on the traditional burger, but naturally there's no reason why you can't strip the sandwich of the Italian garnishes and just order your burger plain. Olive Garden is also introducing a sausage and bell pepper sandwich, but it's a safe bet that it's the Italiano Burger that's going to be turning heads because it helps defuse the "veto factor" that has likely held Olive Garden's performance back in the past. That's how the restaurant industry thinks of the problem of having just

• [By Jon Quast]

  Keep in mind that the company hasn't been driving growth by running promotions. Many restaurants do this, but growth often comes at the expense of profit margins. Consider that Darden (NYSE: DRI  ) banks its ability to grow comparable sales on promotions. It ran promotions across all its brands, which included a three-course Italian dinner for $12.95 at Olive Garden and endless shrimp for $15.99 at Red Lobster.

Best Restaurant Stocks To Buy For 2015: Fiesta Restaurant Group Inc (FRGI)

Fiesta Restaurant Group, Inc. (Fiesta Restaurant Group), incorporated on April 27, 2011, owns, operates and franchises two fast-casual restaurant brands, Pollo Tropical and Taco Cabana. The Company's Pollo Tropical restaurants offer a range of tropical and Caribbean inspired food, while the Company's Taco Cabana restaurants offers a range of fresh, authentic Mexican food. As of December 30, 2012 , the Company owned and operated a total of 251 restaurants across four states, which included 91 Pollo Tropical and 160 Taco Cabana restaurants. The Company franchises its Pollo Tropical restaurants internationally. As of December 30, 2012 , the Company had 35 franchised Pollo Tropical restaurants located in Puerto Rico, Ecuador, Honduras, Trinidad, the Bahamas, Venezuela, Costa Rica, Panama and on several college campuses in Florida. As of December 30, 2012 , the Company had eight Taco Cabana franchised restaurants located in Georgia, New Mexico and Texas.

Pollo Tropical

The Company's Pollo Tropical restaurants offer tropical and Caribbean inspired menu items, featuring grilled chicken marinated in the Company's blend of tropical fruit juices and spices. The Company's diverse menu also includes a line of TropiChops (a casserole bowl of grilled chicken, roast pork or grilled vegetables served over white, brown or yellow rice and red or black beans and topped with a range of condiments and sauces), a range of chicken sandwiches, wraps, salads, roast pork, grilled ribs and wings offered with a range of salsas, sauces and Caribbean style made from scratch side dishes, including black beans and rice, Yucatan fries and sweet plantains, as well as menu items, such as french fries, corn and salads. The Company also offers Hispanic desserts, such as flan and tres leches, and at certain locations, the Company offers a range of sangria, wine and beer.

The Company's Pollo Tropical restaurants feature signature dining areas. In additiona, the Company's Pollo Tropical restaurants ! provide its guests the option of take-out, as well as the convenience of drive-thru windows. The Company's Pollo Tropical restaurants are open for lunch, dinner and late night orders seven days per week. As of December 30, 2012, its company-owned Pollo Tropical restaurants were freestanding buildings. The Company's typical free-standing Pollo Tropical restaurant ranges from 2,800 to 3,500 square feet and provide interior seating for approximately 70 guests. As of December 30, 2012 , the Company owned and operated a total of 91 Pollo Tropical restaurants, of which 89 were located in Florida and two were located in Georgia. The Company is franchising its Pollo Tropical restaurants internationally. As of December 30, 2012, the Company had 35 franchised Pollo Tropical restaurants located in Puerto Rico, Ecuador, Honduras, Trinidad, the Bahamas, Venezuela, Costa Rica, Panama and on college campuses in Florida. The Company also has agreements for the future development of franchised Pollo Tropical restaurants in Tobago, Aruba, Curacao, Bonaire, Guatemala and India.

Taco Cabana

The Company's Taco Cabana restaurants serve Mexican food, including flame-grilled beef and chicken fajitas served on sizzling iron skillets, quesadillas, hand-rolled flautas, enchiladas, burritos, tacos, fresh-made flour tortillas, a selection of made from scratch salsas and sauces, customizable salads served in a Cabana bowl, traditional Mexican and American breakfasts and other Mexican dishes. The Company's Taco Cabana restaurants also offer a range of beverage choices, including soft drinks, frozen margaritas and beer.

The Company's Taco Cabana restaurants feature interior dining areas, as well as semi-enclosed and outdoor patio areas. In addition, the Company's Taco Cabana restaurants provide its guests the option of take-out. The Company's freestanding Taco Cabana restaurants average approximately 3,500 square feet (exclusive of the exterior dining area) and provide seating for approximatel! y 80 gues! ts, with additional outside patio seating for approximately 50 guests. As of December 30, 2012, its company-owned Taco Cabana restaurants were freestanding buildings. As of December 30, 2012, the Company owned and operated 160 Taco Cabana restaurants, of which 156 are located in Texas and four in Oklahoma.

Advisors' Opinion:

• [By Seth Jayson]

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

• [By GURUFOCUS]

  Fiesta Restaurant Group (FRGI) was the Fund's best performing position in the fourth quarter and for all of 2013. Over the past year the stock g ained over 240 percent and added 212 basis points of return. The fast-food chain has con tinued to restructure after spinning off Burger King restaurants and is now successfully ach ieving organic growth. We continue to believe the stock is undervalued and expect further growth ahead.

Best Restaurant Stocks To Buy For 2015: Blue Water Global Group Inc (BLUU)

Blue Water Global Group, Inc. (Blue Water), incorporated on March 3, 2011, is a development-stage company. The Company focuses on developing a chain of casual dining restaurants in tourist destinations throughout the Caribbean region. The Company's initial restaurant is going to be called Blue Water Bar & Grill and will be located in St. Maarten, Dutch West Indies.

As of February 7, 2013, the Company did not operate any restaurant properties, and did not have any ownership or leaseholds in any restaurant properties. As of February 7, 2013, the Company did not have any ownership or leaseholds in any restaurant properties.

Advisors' Opinion:

• [By Peter Graham]

  Last Friday, small cap Digital Brand Media & Marketing Group Inc (OTCMKTS: DBMM) surged 22.22% while Blue Water Global Group Inc (OTCBB: BLUU) sank 18.42% and Medina International Holdings, Inc (OTCMKTS: MIHI) sank 50%. However, one of these small caps (Blue Water Global Group) appears to be reversing course in early morning trading today. So with it and the rest of these small cap stocks either sink or swim in trading this week? Here is a closer look to help you decide on an investing or trading strategy:

• [By Peter Graham]

  Small cap stocks Naturalnano Inc (OTCMKTS: NNAN), Global Payout, Inc (OTCMKTS: GOHE) and Blue Water Global Group Inc (OTCBB: BLUU) were either jumping higher or diving lower yesterday. To complicate matters for investors, two of these small cap stocks have been subjects of disclosures about paid promotion or investor relation campaigns. So what will these three small caps do for the rest of this week? Here is a closer look to help you decide on a trading or investing strategy:

• [By Peter Graham]

  Small cap stocks Caribbean International Holdings (OTCMKTS: CIHN), Blue Water Global Group Inc (OTCBB: BLUU) and Metrospaces Inc (OTCMKTS: MSPC) have been getting some attention lately in various investment newsletters and all three have focused their activities in the Caribbean or South America. However, all three have been the subject of paid promotions which have helped to get them mentions in various investment newsletters. With that in mind, will bets on the Caribbean or South America pay off big for these three small cap stocks and their investors? Here is a quick reality check:

Best Restaurant Stocks To Buy For 2015: Ignite Restaurant Group Inc (IRG)

Ignite Restaurant Group, Inc., incorporated on February 4, 2002, operates two restaurant brands, Joe's Crab Shack (Joe's) and Brick House Tavern + Tap (Brick House). The Company�� Joe's Crab Shack and Brick House Tavern + Tap operate in a diverse set of markets across the United States. Joe's Crab Shack is a national chain of casual seafood restaurants serving a variety of seafood items, with an emphasis on crab. Brick House Tavern + Tap is a casual restaurant brand that provides guests a gastro pub experience by offering a blend of menu items. As of December 31, 2012, the Company owned and operated 144 restaurants in 33 states. In September 2013, Ignite Restaurant Group Inc announced the opening of its newest Joe's Crab Shack restaurant, located in Newark, New Jersey.

Joe's Crab Shack

The Company�� Joe's Crab Shack offers an outdoor patio for guests to enjoy eating and drinking and a children's playground. Joe's also has many locations that are located on waterfront property. Interior design elements include a nautical, vacation theme to invoke memories of beach vacations and a genuine crab shack experience. Joe's Crab Shack restaurants have over 200 seats. Many of the Company�� restaurants also include a small gift shop where guests can purchase souvenirs to commemorate their dining experience. Joe's Crab Shack also leverages its crab-forward menu with other crab items, including Made-From-Scratch Crab Cakes, Crab Nachos and Crazy-Good Crab Dip. In addition to its core crab-focused menu, Joe's also offers a range of entrees featuring a variety of seafood, including the Get Stuffed Snapper, Surf 'N Turf Burger and The Big Hook Up, as well as a range of traditional seafood entrees like the Fisherman's Platter. Joe's also offers several out of water options, such as Pan Fried Cheesy Chicken and Whiskey Smoked Ribs. In addition, alcoholic beverages include the Shark Bite, Category 5 Hurricane and Mason Jar cocktails emerging as guests' top choices. Joe's menu inc! ludes more than 29 items made with either Queen, Snow, Dungeness or King Crabs sourced from government regulated and sustainable fisheries. Its menu offers 14 appetizers, including Made-From-Scratch Crab Cakes, Crab Nachos and Crazy-Good Crab Dip, and over 50 entrees, including Steampots, Crab in a Bucket, Skillet Paella, Stuffed Snapper and out of water options like Whiskey Smoked Ribs.

Brick House Tavern + Tap

The Company�� Brick House's interior decor includes custom lighting, dark mahogany woods, open sight lines, high definition television (HD TVs), and an inviting fireplace. In addition to a traditional dining room and bar area, Brick House also offers large communal tables and a section of leather recliners positioned in front of large HD TVs, where guests receive their own TV tray for dining. Outdoor seating is also available on the patio or around an open fire pit at nearly all locations. Both food and beverages are served by personable and engaging service staff. The typical Brick House restaurant is approximately 8,500 square feet and averages approximately 250 seats, which includes both traditional tables and seating options. Brick House offers its guests a selection of contemporary tavern food. Brick House's menu includes 17 appetizers and over 53 entrees. Handcrafted appetizers include Deviled Eggs, Meatloaf Sliders, Brick Pizza, Meat and Cheese Board and Fried Stuffed Olives. Brick House offers an array of burgers, including The Kobe, which is hand formed from American Wagyu beef. Guests can also choose from a selection of homemade entrees, such as Drunken Chops, BBQ Baby Backs, Chicken & Waffles, and its Prime Rib Sandwich. In addition, Brick House's Brick Burgers, include the Gun Show Burger and the Black & Bleu Burger. Brick House's beverage selection includes imported and domestic beers along with hand-pulled cask beer. All Brick House restaurants have a bar that supports a variety of liquor drinks, wine and beer cocktails like the Shandy and Bee Sting, a! s well as! specialty cocktails like the Dark & Stormy, Moscow Mule and The Zombie.

The Company competes with Red Lobster, Bonefish Grill, Landry's Seafood, Bubba Gump Shrimp Company, BJ's Restaurants, Yard House, Cheesecake Factory, Bravo Brio and Buffalo Wild Wings, Applebee's, Chili's, T.G.I. Friday's, Texas Roadhouse and Outback Steakhouse.

Advisors' Opinion:

• [By Victor Selva]

  The firm is currently Zacks Rank # 3 - Hold, and it also has a longer-term recommendation of ��nderperfom.��For investors looking for a Zacks Rank # 1 ��Strong Buy, Ignite Restaurant Group Inc. (IRG) and The Wendy's Company (WEN) could be the options.

• [By Seth Jayson]

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

Best Restaurant Stocks To Buy For 2015: Chanticleer Holdings Inc (HOTR)

Chanticleer Holdings, Inc., incorporated in 1999, is a business operator focused on expanding the Hooters casual dining restaurant brand in international markets. Chanticleer has rights to develop and operate Hooters restaurants in South Africa and has joint ventured with the current franchisee in Australia. The company also has franchise rights to develop Hungary and parts of Brazil while evaluating several additional opportunities internationally. During the year ended December 31, 2011, Chanticleer and a group of private equity investors acquired Hooters of America, Inc. (HOA). HOA is the franchisor and operator of over 450 Hooters restaurants in 44 states and 28 foreign countries. In October 2013, Chanticleer Holdings Inc purchased American Roadside Burgers, Inc. In December 12, 2013, Chanticleer Holdings Inc acquired a 51% interest in JF Restaurants LLC, an owner and operator of restaurants. In February 2014, it acquired Hooters' United States Pacific Northwest franchise rights and two existing restaurants in Oregon and Washington.

The Company operates in two business segments: Hooters franchise restaurants, and investment management and consulting services businesses. Hooters has also branched out to other areas, including licensing its name to a golf tour and the sale of packaged food in supermarkets. Its subsidiaries include Chanticleer Advisors, LLC, (Advisors), Avenel Ventures, LLC (Ventures), Avenel Financial Services, LLC (AFS), Chanticleer Holdings Limited (CHL), Chanticleer Holdings Australia Pty, Ltd. (CHA), Chanticleer Investment Partners, LLC (CIP), DineOut SA Ltd. (DineOut), Kiarabrite (Pty) Ltd (KPL), Dimaflo (Pty) Ltd (DFLO), Tundraspex (Pty) Ltd (TPL), Civisign (Pty) Ltd (CPL), Dimalogix (Pty) Ltd (DLOG) and Crown Restaurants Kft. (CRK).

South Africa

As of December 31, 2011, the Company had four Hooters locations in South Africa in Cape Town, Durban and Johannesburg (two locations), which are owned by four companies, which it control. The Com! pany formed a management company to operate the current South African Hooters locations. It owns 80% of the management company, with two members of local management owning the remaining 20%. The management company charges a management fee of 5% of net revenues to the Hooters locations in South Africa.

Other Countries

The Company has acquired development rights for Hooters in five states of Brazil, which would include Rio de Janeiro. It has applied to HOA for franchise rights in Hungary, where it own 80% of the entity the Company anticipate will hold the franchise rights and its local partner owns the remaining 20%. The Company has partnered with the Hooters franchisee in a joint venture in which it owns 49% and its partner 51%. The first Hooters restaurant under this joint venture (which would be the third Hooters restaurant open in Australia) opened in January 2012 in Campbelltown, a suburb of Sydney. It has a non-binding letter of intent with a franchisee to purchase 100% of an existing Hooters location.

Management and consulting services

The Company provides management and consulting services for small companies, which are seeking to become publicly traded. The Company also provides management and investment services for Investors LLC and Investors II, which are affiliates of the Company.

Advisors' Opinion:

• [By Chris Isidore]

  Restaurant chains are trying to hold the line on prices. Mark Allison, senior vice president of culinary operations at Chanticleer Holdings (HOTR), which operates the American Roadside Burger chain, said his chain raised prices about 12%, even though their beef costs are up even more than that.

Best Restaurant Stocks To Buy For 2015: BAB Inc (BABB)

BAB, Inc., incorporated on July 12, 2000, franchises and licenses bagel and muffin retail units under the Big Apple Bagel (BAB) and My Favorite Muffin (MFM) trade names. At November 30, 2012, the Company had 100 franchise units and 6 licensed units in operation in 24 states. The Company additionally derives income from the sale of its trademark bagels, muffins and coffee through nontraditional channels of distribution including under licensing agreements with Kohr Bros. Frozen Custard, Kaleidoscoops, Green Beans Coffee, Sodexo and through direct home delivery of specialty muffin gift baskets and coffee. The Company has two wholly owned subsidiaries: BAB Systems, Inc. (Systems) and BAB Operations, Inc. (Operations). At November 30, 2012, the Company had 100 franchise units and six licensed units in operation in 24 states.

The Company additionally derives income from the sale of its trademark bagels, muffins and coffee through nontraditional channels of distribution including under licensing agreements with Kohr Bros. Frozen Custard, Kaleidoscoops, Green Beans Coffee, Sodexo and through direct home delivery of specialty muffin gift baskets and coffee. The BAB franchised brand consists of units operating as Big Apple Bagels, featuring daily baked bagels, flavored cream cheeses, premium coffees, gourmet bagel sandwiches and other related products. Licensed BAB units serve the Company's par-baked frozen bagel and related products baked daily. BAB units are primarily concentrated in the Midwest and Western United States. The MFM brand consists of units operating as My Favorite Muffin, featuring a variety of freshly baked muffins, coffees and related products, and units operating as My Favorite Muffin and Bagel Cafe, featuring these products as well as a variety of specialty bagel sandwiches and related products.

The Company�� BAB offering franchises in all 50 states, its initial development focus is targeted for the Midwest, specifically Illinois, Michigan, Wisconsin and Ohio. A! s part of its introductory development plan, BAB will be donating 10% of the initial franchise fee from its 50 SweetDuet units to the Cystic Fibrosis Foundation, of which BAB is a corporate sponsor. SweetDuet, as its name implies, is a fusion concept, pairing self-serve frozen yogurt with BAB's exclusive line of My Favorite Muffin gourmet muffins, broadening the shop's offering and therefore differentiating itself from the numerous frozen yogurt outlets already populating the market. SweetDuet shops include BAB's Brewster's Coffee and a streamlined breakfast menu. The concept is designed to work in 1600 square feet of space.

BAB franchised stores daily bake a variety of fresh bagels and offer up to 11 varieties of cream cheese spreads. Stores also offer a variety of breakfast and lunch bagel sandwiches, salads, soups, various dessert items, fruit smoothies, gourmet coffees and other beverages. A typical BAB store is in an area with a mix of both residential and commercial properties and ranges from 1,500 to 2,000 square feet. The Company's current store design is approximately 1,800 square feet, with seating capacity for 20 to 30 persons, and includes approximately 750 square feet devoted to production and baking. A satellite store is typically smaller than a production store, averaging 800 to 1,200 square feet. Although franchise stores may vary in size from other franchise stores, store layout is generally consistent.

MFM franchised stores daily bake 20 to 25 varieties of muffins from over 250 recipes, plus a variety of bagels. They also serve gourmet coffees, beverages and, at My Favorite Muffin and Bagel Cafe locations, a variety of bagel sandwiches and related products. The typical MFM store design is approximately 1,800 square feet, with seating capacity for 20 to 30 persons.The Company advertises its franchising opportunities in directories, newspapers and the Internet.

The Company competes with Einstein Noah Restaurant Group, Panera Bread Company and Brue! gger's Ba! gel Bakery.

Advisors' Opinion:

• [By CRWE]

  Today, BABB remains (0.00%) +0.000 at $.800 thus far (ref. google finance July 11, 2013).

  For the quarter ended May 31, 2013, BAB had revenues of $658,000 and net income of $125,000, or $0.02 per share, versus revenues of $826,000 and net income of $267,000, or $0.04 per share, for the same quarter last year. For the quarter ended May 31, 2012, the Company received a $171,000 payment for the buyout of the Franchise Agreement from its Minot, ND franchisee so the franchisee could pursue its other business interests associated with the local energy boom. In that acceptance by the Company of the voluntary buyout is unique, no such transaction occurred nor was such income earned in the quarter ended May 31, 2013.