Is bull market morphing into Fed-driven bubble?

NEW YORK — Is the great stock market rally of 2013, which has been turbocharged by the Federal Reserve's easy-money policies, a boom to be savored — or a bubble to be feared?

The bubble debate has become increasingly murky in recent weeks as more of the traditional financial fingerprints Wall Street uses to identify a frothy market show up on investors' radar.

A growing chorus of Wall Street pros say a bubble is forming in the U.S. stock market. They blame the Fed's unprecedented stimulus, including its $85 billion in monthly bond purchases, for artificially inflating stock prices. There is concern that if the Fed does not dial back its asset purchases soon, stocks could shoot higher and become even more delinked from business fundamentals.

The Fed said this week that it would continue its asset purchases at the current level, once again delaying the inevitable tapering of a program designed to stimulate the economy by keeping interest rates low. The policy, however, has pushed rates so low that a lot of the $1 trillion the Fed is injecting into markets annually has made its way into the stock market.

"We believe a bubble is developing in stocks," says Patrick Adams, portfolio manager at PVG Asset Management. "Fed policy is forcing money into (stocks), pushing forward returns that would have come in future years. There are clear excesses. "

Signs of exuberance abound. The Dow Jones industrials and Standard & Poor's 500 are setting records at a pace not seen since 1999. And the year-to-date gains are huge. In a flashback to the 1990's dot-com stock craze, the Nasdaq composite is up almost 30%.

Similarly, the S&P 500's current price-to-earnings ratio, a gauge of how pricey stocks are, has ticked up as high as 16.7, says Bespoke Investment Group. That's the highest in a year and close to the 17-plus level seen near the market's last top in 2007, Thomson Reuters says. In another sign of optimism, Main Street investors who say they are "bearish," or think stock! s will fall, recently fell to less than 18%, its lowest since January 2012, says the American Association of Individual Investors.

"There's no bubble yet," although the potential for one is there, counters Rod Smyth, chief investment strategist at Riverfront Investment Group. "It's hard to say stocks are in a bubble when you look at the pace of earnings." He says stocks are simply getting back to fair value after a steep drop and reflect an improving global economy. The S&P 500 is up just 12% from its 2007 high while corporate earnings have nearly doubled since 2009, Smyth says.

"The bubble could get bigger," warns Adams. "The Fed looks like it will continue to blow the bubble up a little bit more, which will just make the pain worse on the downside."

Sell JCP NOW – JCPenney Stock Slashed In Half Over Last Month

Shares of JCPenney (JCP) fell below the $7 mark this week, bringing 1-month losses to around 50% and 12-month losses to 75%. That’s the lowest level JCP stock has seen in 33 years.

JCPenney stock did manage to regain a sliver of recent losses yesterday, but that still wasn’t enough to send shares of JCP back over the $7 mark, much less bring them back to the 20-day moving average just over $8. JCPenney stock closed up 1.87% at $6.50 for the day.

Fun fact: That makes the share price less than the amount of cash JCPenney held per share as of the end of the second quarter.

The balance sheet could have changed slightly since then — something we will find out when third-quarter JCPenney earnings are released next month, on Nov. 19. But it seems likely that there will still be little value, if any, in shares of JCP stock beyond the company’s pile of cash.

Besides, debt per share for JCP was around four times that cash per share as of the the second quarter’s end.

That’s an ugly picture for falling JCPenney stock, and just part of the growing pile of reasons investors are best advised to stay away.

A Pile of Struggles for JCP

If you’re still not convinced an investment in JCP stock is too big of a risk, the red flags don’t end there.

First of all, JCP stock continued its downtrend this week because Imperial Capital analyst Mary Ross-Gilbert reiterated her “underperform rating” and slashed her price target to just $1. That $1 floor was cited by a Citi analysts as the liquidation value last month as well.

While Ross-Gilbert pointed to the possibility of bankruptcy as the reason for more JCP downside, there are plenty of other headwinds for JCPenney stock.

Brian Sozzi, CEO & Chief Equities Strategist at Belus Capital Advisors recently said that the retailer needs a historic holiday season to survive, mentioning the aforementioned huge pile of bills to pay. That type of holiday season sure doesn’t look to be in the cards for JCP.

Deutsche Bank (DB) analysts, for example, expect the department store space overall to struggle this holiday season in the face of declining mall traffic and overall spending that is lackluster. That means they expect stronger stores like Macy’s (M) and Nordstrom (JWN) to post even lower earnings, and flailing JCPenney to post an even wider loss.

That’s hardly what JCPenney needs — especially considering holiday sales fell 30% last year under the reign of Ron Johnson.

And that means there’s a pretty good chance that JCP stock will continue its never-ending slide. Besides, on the off chance there is a substantial rebound, it’s almost guaranteed that bottom-fishing investors aren’t going to time it right.

The bottom line: Stay away from sinking JCPenney stock. Everytime it seems like the stock can’t fall any further, it doesn. And there’s simply no reason trying to time a bottom in a stock with little value and little hope at a turnaround anyways.

As of this writing, Robert Martin did not hold a position in any of the aforementioned securities.

10 Best Casino Stocks To Invest In 2014

Whether or not "sell in May and walk away" will play out this year remains to be seen as the S&P 500 rallied to a new all-time record high to begin this week. For skeptics like me, that's an opportunity to see whether companies have earned their current valuations.

Keep in mind that some companies�deserve�their current valuations. Take Waste Management (NYSE: WM  ) , for instance, which has rallied ever since reporting its first-quarter results last week. The company's internal revenue growth from yield for its collection and disposal operations came in at a two-year high, 1.4%, and the company modestly improved its adjusted year-over-year EPS. Trash disposal and recycling are necessity businesses and make Waste Management a solid long-term buy.

Still, other companies might deserve a kick in the pants. Here's a look at three companies that could be worth selling.

Time to make the switch
If I could name a sector that I'd certainly tread lightly around considering that consumers are tightening their wallets, it would be the casino sector. Casino companies rely on loose wallets and vacations to drive profits. This is why I feel it could be the time to say goodbye to casino and race track operator Pinnacle Entertainment (NYSE: PNK  ) near its 52-week high.

10 Best Casino Stocks To Invest In 2014: Wynn Resorts Limited(WYNN)

Wynn Resorts, Limited, together with its subsidiaries, engages in the development, ownership, and operation of destination casino resorts. The company owns and operates Wynn Las Vegas casino resort in Las Vegas, which includes approximately 22 food and beverage outlets comprising 5 dining restaurants; 2 nightclubs; 1 spa and salon; 1 Ferrari and Maserati automobile dealership; wedding chapels; an 18-hole golf course; meeting space; and foot retail promenade featuring boutiques. Wynn Las Vegas casino resort also features approximately 147 table games, 1 baccarat salon, private VIP gaming rooms, 1 poker room, 1,842 slot machines, and 1 race and sports book. It also owns and operates an Encore at Wynn Las Vegas resort, a destination casino resort located adjacent to Wynn Las Vegas that features a 2,034 all-suite hotel, as well as a casino with 95 table games, 1 sky casino, 1 baccarat salon, private VIP gaming rooms, and 778 slot machines. In addition, the company operates Wyn n Macau casino resort located in the Macau Special Administrative Region of the People?s Republic of China. Wynn Macau casino resort features approximately 595 hotel rooms and suites, 410 table games, 935 slot machines, 1 poker room, 1 sky casino, 6 restaurants, 1 spa and salon, lounges, meeting facilities, and retail space featuring boutiques. Further, it operates Encore at Wynn Macau resort located adjacent to Wynn Macau. Encore at Wynn Macau resort features approximately 410 luxury suites and 4 villas, as well as casino gaming space, including a sky casino consisting of 60 table games and 80 slot machines, 2 restaurants, 1 luxury spa, and retail space. The company was founded in 2002 and is based in Las Vegas, Nevada.

Advisors' Opinion:

• [By Kyle Spencer]

  Unfortunately, the Chinese frozen food market is an oligopoly, which means there aren't U.S. listed stocks that stand to benefit at this point, apart from General Mills (GIS) subsidiary Wan Chai Ferry. On the other hand, there are plenty of short opportunities, including YUM brands (YUM), and Wynn Resorts (WYNN), despite the amusingly Panglossian report that RBC Capital released on Wynn Resorts Monday.

• [By Jon C. Ogg]

  Wynn Resorts Ltd. (NASDAQ: WYNN) was downgraded to Neutral from Outperform, but the price target was raised to $160 from $149, at Credit Suisse.

  Zoetis Inc. (NYSE: ZTS) was raised to Overweight from Equal Weight at Morgan Stanley.

• [By Dan Caplinger]

  4. Nevada
  The $8.25 minimum wage that Nevada pays comes with an interesting twist: Companies that offer health insurance benefits to their employees are allowed to pay $1 less in hourly wages. Although a referendum in 2006 required the state to index its base wage to inflation, the wage has stayed the same since 2010. Another perk: Tipped employees have to receive the same minimum wage as other workers. That's a big cost for Las Vegas Sands (NYSE: LVS  ) , Wynn Resorts (NASDAQ: WYNN  ) , and other companies with casinos in the state that might otherwise be able to pay many of their tip-earning workers less.

• [By Ben Levisohn]

  He also likes Wynn Resorts (WYNN), despite its 34% gain.�Santarelli writes:

  As for WYNN, we believe near-term estimates continue to take a back seat to capital returns and the discounting of Cotai, though we do find near term numbers to be beatable in Macau given QTD trends, most notably on the VIP side. Net-net, we find WYNN to be the most compelling longer-term story in our coverage universe and given the scope of the Cotai development and its impact on valuation, we anticipate value attribution for the project will come well in advance of the historical rule of thumb for new openings in the space, which has generally been about one year.

10 Best Casino Stocks To Invest In 2014: Pinnacle Entertainment Inc.(PNK)

Pinnacle Entertainment, Inc. owns, develops, and operates casinos, and related hospitality and entertainment facilities in the United States. It operates casinos, such as L'Auberge du Lac in Lake Charles, Louisiana; River City Casino and Lumiere Place in St. Louis, Missouri; Boomtown New Orleans in New Orleans, Louisiana; Belterra Casino Resort in Vevay, Indiana; Boomtown Bossier City in Bossier City, Louisiana; and Boomtown Reno in Reno, Nevada. The company also operates River Downs racetrack in southeast Cincinnati, Ohio. As of May 26, 2011, it operated seven casinos and one racetrack. The company was formerly known as Hollywood Park, Inc. and changed its name to Pinnacle Entertainment, Inc. in February 2000. Pinnacle Entertainment, Inc. was founded in 1935 and is based in Las Vegas, Nevada.

Advisors' Opinion:

• [By Sean Williams]

  Time to make the switch
  If I could name a sector that I'd certainly tread lightly around considering that consumers are tightening their wallets, it would be the casino sector. Casino companies rely on loose wallets and vacations to drive profits. This is why I feel it could be the time to say goodbye to casino and race track operator Pinnacle Entertainment (NYSE: PNK  ) near its 52-week high.

Top Biotech Companies To Invest In Right Now: Boyd Gaming Corporation(BYD)

Boyd Gaming Corporation, together with its subsidiaries, operates as a multi-jurisdictional gaming company in the United States. As of December 31, 2011, the company owned and operated 1,042,787 square feet of casino space, containing approximately 25,973 slot machines, 655 table games, and 11,418 hotel rooms. It also owned and operated 16 gaming entertainment properties located in Nevada, Illinois, Louisiana, Mississippi, Indiana, and New Jersey. In addition, the company owns and operates a pari-mutuel jai-alai facility located in Dania Beach, Florida, as well as a travel agency in Hawaii. Further, it holds a 50% controlling interest in the limited liability company that operates Borgata Hotel Casino and Spa in Atlantic City, New Jersey. Boyd Gaming Corporation was founded in 1988 and is headquartered in Las Vegas, Nevada.

Advisors' Opinion:

• [By Seth Jayson]

  Boyd Gaming (NYSE: BYD  ) reported earnings on April 24. Here are the numbers you need to know.

  The 10-second takeaway
  For the quarter ended March 31 (Q1), Boyd Gaming met expectations on revenues and beat expectations on earnings per share.

10 Best Casino Stocks To Invest In 2014: (XTRN)

Las Vegas Railway Express Inc. focuses to re-establish a conventional passenger train service between the Las Vegas and Los Angeles metropolitan areas. It plans to establish a ?Vegas-style? passenger train service. The company is based in Las Vegas, Nevada.

10 Best Casino Stocks To Invest In 2014: Umax Group Corp (UMAX)

Umax Group Corp., incorporated on March 21, 2011, is a development-stage company. The Company focuses to develop and distribute its product to the arcade and entertainment industry. The Company�� products include Rocket Launch, is Strength testing game which allows players to test their pushing/ throwing strength; Space Hockey, is a two player hockey game - each player must score as many as possible goals and Boxer, is a Simple punch testing game: insert coin/token/bill, press start button, hit the punch bag, wait for result, and try to beat opponent�� score or high score.

As of April 30, 2013, the Company had no revenues. The Company has developed its business plan, and executed exclusive distribution contract GEO a private enterprise, where it engages GEO as an independent contractor for the specific purpose of developing, manufacturing and supplying games for the Company.

10 Best Casino Stocks To Invest In 2014: Penn National Gaming Inc.(PENN)

Penn National Gaming, Inc. and its subsidiaries own and manage gaming and pari-mutuel properties in the United States. It operates approximately 27,000 gaming machines; 500 table games; and 2,000 hotel rooms in 23 facilities in 16 jurisdictions, including Colorado, Florida, Illinois, Indiana, Iowa, Louisiana, Maine, Maryland, Mississippi, Missouri, New Jersey, New Mexico, Ohio, Pennsylvania, West Virginia, and Ontario. The company was formerly known as PNRC Corp. and changed its name to Penn National Gaming, Inc. in 1994. Penn National Gaming, Inc. was founded in 1982 and is based in Wyomissing, Pennsylvania.

Advisors' Opinion:

• [By Roberto Pedone]

   

  Penn National Gaming (PENN) is a diversified, multi-jurisdictional owner and manager of gaming and pari-mutuel properties. This stock closed up 1.4% at $56.13 in Monday's trading session.

   

  Monday's Volume: 1.11 million
  
  Three-Month Average Volume: 824,334
  
  Volume % Change: 73%

   

   

  From a technical perspective, PENN jumped modestly higher here right above some near-term support at $54.71 with above-average volume. This move is quickly pushing shares of PENN within range of triggering a breakout trade. That trade will hit if PENN manages to take out some near-term overhead resistance at $57.44 to some past resistance at $58 with high volume.

   

  Traders should now look for long-biased trades in PENN as long as it's trending above Monday's low $55.65 or above more support at $54.71 and then once it sustains a move or close above those breakout levels with volume that this near or above 824,334 shares. If that breakout hits soon, then PENN will set up to re-test or possibly take out its 52-week high at $59.93. Any high-volume move above $59.93 will then give PENN a chance to hit $65.

   

10 Best Casino Stocks To Invest In 2014: MGM Resorts International(MGM)

MGM Resorts International, through its subsidiaries, primarily owns and operates casino resorts in the United States. The company?s resorts offer gaming, hotel, dining, entertainment, retail, and other resort amenities. It also owns and operates golf courses and a golf club. As of December 31, 2010, the company owned and operated 15 properties located in Nevada, Mississippi, and Michigan; and has 50% investments in 4 other casino resorts in Nevada, Illinois, and Macau. In addition, MGM Resorts International has an agreement with the Mashantucket Pequot Tribal Nation, which owns and operates a casino resort in Connecticut, to carry the ?MGM Grand? brand name. The company was formerly known as MGM MIRAGE and changed its name to MGM Resorts International in June 2010. MGM Resorts International was founded in 1986 and is based in Las Vegas, Nevada.

Advisors' Opinion:

• [By Travis Hoium]

  Cotai continues to be the growth engine of Macau. The Macau Peninsula, where Wynn Resorts (NASDAQ: WYNN  ) and MGM Resorts (NYSE: MGM  ) are located, have been holding steady but the growth is on Cotai, and that's why investors are willing to pay a premium for Melco Crown and Las Vegas Sands.

10 Trends The Washington Compromise Will Not Change At All

A deal between Democrats and Republicans has supposedly been reached in Washington D.C. to end the government shutdown and to end the debt ceiling expiration. While many people expect that this will prevent Treasury defaults, the reality is that many other trends are not likely to change at all in the weeks and months ahead. It is unfortunate to say that the inverse may not be true if the deal falls apart.

24/7 Wall St. has been tracking many of these and other trends before and during this last round of infighting in Washington D.C. Some trends have been rather obvious. Others have been harder to assume or predict. What we wanted to alert our readers to is what the settlement in Washington does not really change at all.

This is a quick-hit list of bullet points of what to look for in the coming weeks and months. One caveat has to be made that these set in stone issues are based upon a settlement actually going through.

Read Also: 11 Nations That Still Have Perfect Credit

Here are ten things that will not likely be changed at all versus what you saw before the government shutdown and during the shutdown.

1) D.C. Crisis Management Will Continue

The first thing to consider is that this is not the last crisis management in Washington. It appears that this is simply kicking the can down the road a few months, and 2014 is an election year. This Congress and this President seem only able to come together when all failed efforts are shown to come with an outcome that is far worse than coming together. Washington D.C. management simply moves from one crisis to another and that will continue. The media loves this frenzy too because it keeps people interested, so you might even be led to think there is a big fight even if there is just a small argument.

2) Long Live QE!

The second consideration is that Quantitative Easing is likely to continue. Janet Yellen’s appointment as the next Chairman of the Federal Reserve is one which is aimed at continuing low interest rates and other measure. This will follow Ben Bernanke’s move of keeping the $85 billion in monthly bond purchases alive into 2014, being very dovish on interest rates ahead, and targeting unemployment. We do expect the Janet Yellen appointment to be confirmed even if it is a process. The Fed’s latest Beige Book was already suggesting weaker growth and that was before the full impact of the federal government shutdown. It is shocking to us how the Federal Reserve balance sheet is approaching $4 trillion, and we think that $4 trillion in assets will be hit in December of January. To put that in context, the Fed’s balance sheet is now larger than Germany’s GDP.

Hot Penny Stocks For 2014

3) U.S. Credit Rating Risks Remain

The third consideration to keep in mind is that Fitch’s warning about the “full faith and credit” will remain relevant. If the debt ceiling debate is pushed out only until January or February, we are soon to be right back at the same place again. It will feel like you were sent back to Go, without collecting $200 and without a new role of the dice. Fitch’s warning was more dire once you get inside the report for the hidden meaning. Fitch may even announce very soon that they are removing the Rating Watch Negative bias, but this will come right back on the table if the infighting in January and February is a repeat of October. Will the U.S. get a downgrade? Perhaps not, but the risks to the downside are likely to remain higher than risks to the upside.

Wal-Mart kicks off holiday shopping season online

NEW YORK (AP) — Wal-Mart Stores Inc. is upping the ante on holiday shopping.

The world's largest retailer is pulling forward by nearly a month seven big deals on items like TVs and tablets that were originally reserved for the day after Thanksgiving and so-called Cyber Monday.

Shoppers will be able to purchase the items online starting shortly after midnight Friday. At the same time, the company's website will be pushing another 300 holiday deals.

The seven deals include a 42- inch JVC LED TV for $299, a savings of 36%, and a 10-inch XELIO tablet for $49, a 51% discount. The items will be available while supplies last. Last year, Wal-Mart offered about 100 holiday deals online right after Halloween, but the offerings were focused on home decor.

"It's been a tough year for the average American family," Joel Anderson, president and CEO of Wal-Mart.com, told The Associated Press. "It's our job to be able to help our customers."

He said Wal-Mart decided to accelerate offering the seven deals a month ago. Wal-Mart declined to say whether it would be repeating the discounts during the Thanksgiving weekend.

Anderson noted that on top of economic challenges, there are loyal shoppers who want to be able to shop for bargains early. Last year, Wal-Mart saw traffic on its website surge right after Halloween, he noted.

The move comes as Wal-Mart, like others, have seen customers scale back purchases heading into the holiday shopping season, which accounts for anywhere from 20% to 40% of retailers' annual revenue. While the job and housing markets are recovering, the improvements haven't been enough to sustain increased spending among shoppers.

Best Warren Buffett Companies To Watch For 2014

The partial government shutdown, which lasted 16 days, also soured shoppers' confidence. The National Retail Federation, the nation's largest retail trade group, expects an in! crease of 3.9% in sales for the November-December period. That's higher than last year's 3.5%, but the forecast didn't account for the prolonged shutdown. Online sales are expected to be up 13% to 15%, according to the group.

Retailers also say that there's more pressure this year, because the period between Thanksgiving and Christmas is six days shorter than in 2012.

Against this background, a slew of stores including J.C. Penney and Macy's have announced they are opening their doors on Thanksgiving evening for the first time. Wal-Mart, which started deals at its stores Thanksgiving evening last year, hasn't said when it will start doing so this year.

Wal-Mart has been particularly vulnerable to the economy's woes since it caters to low-income shoppers. But the retailer is also trying to offer its shoppers anywhere, anytime access and using its website as a weapon in the holiday wars.

Marketers started promoting the Monday after Thanksgiving as "Cyber Monday" in 2005 to push people to shop online.

Heading into the holiday season, Wal-Mart's website has doubled the number of products it offers online to 5 million. It's now offering free shipping for orders of more than $50 on nearly 99% of the items sold on the site. That's up from 15%.

Such moves are expected to help fuel the company's online sales, which the company forecast to increase 30% to $10 billion in its current fiscal year. However, it's still a sliver of its annual revenue of $486 billion.

The Best Unknown Strategies In Your 401(k)

Top Dividend Stocks To Watch Right Now

One of the biggest and most legitimate complaints of 401(k) retirement plans are the lack of investment options available to you. It's not uncommon for plans to offer only 19 funds* (from my viewpoint many of whom do not provide true diversification) so how do you know how to pick the right funds for you? Many 401(k) participants start by looking at past returns as an indicator of future success but this approach can be fraught with problems because often times high-flying funds tend to fall back to earth. The old saying is that "it worked, right up until it didn't."

Your 401(k) money is sacred and represents decades of work and sacrifice, do you think there could be a better way to invest and diversify your life savings without the limits imposed by your employer? What's a smart 401(k) saver to do? Here are quite possibly the best strategies that your 401(k) fund manager would rather you not know about:

Could You Be Missing Out on Some Little-Known 401(k) Strategies? (Photo credit: Wikipedia)

1. "Open The Window" – Look beyond the plain vanilla options in your 401(k) and investigate whether your plan offers a brokerage window. When I've shared this idea with new clients they rarely even know this is an option in their 401(k). A brokerage window, once opened, allows access to almost the entire fund universe, and in some cases, stocks and tactical money managers. By using a brokerage window it allows your 401(k) to be customized to your liking and goals (it's your money after all), but I've found that most fund company(s) would rather you keep your money with them hence the reason many 401(k) savers don't even realize its an available option. The best place to start to determine if a brokerage window exists in your plan is to check with your HR department. If you find that you don't have one available then combine efforts with your fellow co-workers and ask your employer to add a brokerage window to your plan.

Executive Pay: How Much Do Shareholders Really Care?

Best Biotech Companies To Own In Right Now

How much do shareholders--or the public--really care about executive pay? A new proposal from the U.S. Securities and Exchange Commission may be aimed at finding out.

The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, ("Dodd-Frank") requires publicly traded companies to hold non-binding (advisory) "say-on-pay" proxy votes at least once every three years on executive compensation policies.

In the short history of say-on-pay, these votes have at times attracted considerable publicity. In 2011, shareholders of Stanley Black & Decker, a tools and hardware company based in New Britain, Conn., issued a "no" vote, and the company's board lowered the CEO's pay by 63%, raised minimum officer stock-holding requirements and altered its severance pay agreements to be less CEO-friendly.

In 2012, Vikram Pandit was forced out as CEO of Citigroup six months after shareholders rejected an increase in his compensation.

Although say-on-pay votes are non-binding, their effects can be significant, and have the potential to reshape the way companies create, disclose and communicate their executive compensation policies.

This year, a proposed rule under Dodd-Frank, recently approved by the SEC, would require companies to disclose the ratio between the pay of CEOs and the median pay for all other employees. Democratic Sen. Robert Menendez (N.J.), who wrote the provision on pay-ratio disclosure, said that the proposed rule will help investors monitor how a company treats its average workers and whether its executive pay is reasonable.

Critics of the proposed rule say that it is mostly intended to create public outrage against companies that are perceived to be awarding overly high salaries to CEOs. The reality is that executive pay continues to rise - about 875% between 1978 and 2011, according to a 2012 study ! by the Economic Policy Institute - despite regulatory and shareholder efforts to restrain it.

Upward Spiral
The proposed rule is part of a continued emphasis on disclosure under Dodd-Frank, although the focus on transparency could actually contribute to steadily rising executive salaries. For one thing, the publicity surrounding CEO pay gives executives a good idea of how much they can ask their own companies to pay them. But there may be a more important reason for the continuing increases.

Corporate governance experts Charles M. Elson and Craig K. Ferrere, faculty members at the John L. Weinberg Center for Corporate Governance at the University of Delaware, point to a more important reason: the way boards of directors set salaries. Their recently published analysis, "Executive Superstars, Peer Groups and Over Compensation – Cause, Effect and Solution," showed that most company boards use a statistical technique called peer benchmarking to set CEO salaries.

It usually works like this: a board's first step is to gather a "peer group," made up of companies that are in the same line of business, similar in size and have a variety of similar characteristics. Next, the board gathers data that specifies the level of CEO compensation at each company. To complete the process the board decides at what percentile they want to target their own CEO's total compensation. Most boards set their chief executive's pay no lower than the median (50th percentile) of the group, while boards at other companies could decide to place CEO salaries at the 75th or even the 90th percentile. And with other peer group companies using the same benchmarking process, it all but guarantees that CEO salaries will continue to rise.

The proposed rule sharply divided the SEC commissioners, but won approval by a 3-2 margin.

Commissioner Luis A. Aguilar said: "If comparing CEO compensation solely to the compensation of other CEOs can lead to an … upward spiral, then comparing CEO compensation to the compensation of an average worker may help offset that trend."

Another member expressed strong diss! ent. Commissioner Daniel M. Gallagher said: "There are no – count them, zero – benefits that our staff have been able to discern. As the proposal explains, '[T]he lack of a specific market failure identified as motivating the enactment of this provision poses significant challenges in quantifying potential economic benefits, if any, from the pay ratio disclosure.'"

Plansponsor.com, a news and information website for retirement industry professionals, published the results of a poll by the consulting firm Towers Watson. That firm polled 375 corporate executives and compensation professionals regarding the ruling. The poll revealed that 56% of poll respondents said they are most concerned about the process of complying with the new disclosure requirement, especially collecting pay data, deciding how to approach data-sampling and determining the median employee. Only one-third of respondents (34%) said they are confident they will have the information necessary to comply by 2015.

What Shareholders Want
The benchmarking process itself raises important questions about executive compensation. For example, when do shareholders care about CEO pay, and what matters most when they vote, yes or no, on CEO compensation?

The impetus for passage of Dodd-Frank's say-on-pay requirement in 2011 focused on remedying "excessive" CEO pay. Shareholders generally expressed outrage that CEOs of companies considered to be "underperforming" were receiving large salaries and other compensation (e.g., stock options and other equity-based compensation). Few if any shareholders ever complained about CEOs who were underpaid relative to above-average company performance. This largely explains why say-on-pay votes are usually discussed in terms of reducing overall CEO pay, rather than strengthening links between pay and performance.

A group of researchers conducted experiments to discover whether shareholders care equally about both of the outcomes described above, or whether they considered CEO pay, company performance, or lack of alignment between pay and performance, differentially. The researchers conducted two experiments, rather than use existing data on say-on-pay votes, because it allowed them to focus on different combinations of pay and performance conditions and determine whether causal relationships exist.

Somewhat surprisingly, the results showed that "shareholders" in the experiment were no more likely to reject high CEO pay than low CEO pay. Adding company performance, however, added some necessary context. Participants in the study were much more likely to reject high CEO pay only if the company showed poor performance relative to its peer group. Otherwise, study participants expressed no preference for high or low CEO pay, or for a CEO pay increase or decrease, when company performance was strong. Shareholders were concerned only with CEOs whom they considered to be overpaid when their company performed poorly.

The study's results are confirmed by real-world performance data. Equilar, an independent consulting firm that provides information about executive compensation, analyzed key financial metrics of companies that have held say-on-pay votes in 2013, to investigate a possible correlation! between the company's financial performance and its say-on-pay passing rates. Equilar's analysis considered such key metrics as change in earnings and one-year total shareholder return (TSR, assuming all capital gains distributions and dividends are reinvested), as well as revenue and market capitalization (the total value of shares a company has issued) at the end of the fiscal year.

The companies that passed their say-on-pay votes had an increase in year-over-year earnings of 4.5% and a one-year TSR of 17.1%. These companies had $1 billion in revenue and $1.6 billion in market capitalization. Conversely, the companies that failed their say-on-pay votes had a decrease in year-over-year earnings of 14.4% and a one-year TSR of 11%. In addition, they had $0.8 billion in revenue and $1.3 billion in market capitalization.

Those that passed performed better in all of the key metrics observed compared with those that failed. These results suggest that financial performance does, in fact, have a positive correlation with shareholders voting in favor of executive pay packages.

It should be noted that the number of companies that failed (31) is significantly smaller than the number of companies that passed (1,567). Equilar's analysis found that "pay for performance disconnect" – a high level of executive compensation coupled with poor relative company performance – was the most common reason that shareholders voted against a company's say-on-pay proposal.

Global Say-on-Pay Policies
The most important difference between the U.S. approach to say-on-pay and evolving regulations in Europe is that U.S. companies are not legally required to address negative shareholder votes, as European corporations may soon be required to do.

Earlier this year, Switzerland became the latest European country to require binding shareholder say-on-pay votes. Australia has a variation on binding say-on-pay called the "two-strikes" rule, which requires a company's entire board of directors to stand for re-election if at least 25% of shareholders vote against executive compensation in two consecutive meetings.

The Netherlands, Norway and Sweden already had some form of binding say-on-pay rules. The United Kingdom is expected to join this group, pending passage of legislation this year that would require a binding say-on-pay vote every three years. Germany and the European Union are also expected to introduce binding votes before the end of 2013.

Except for India, say-on-pay policies have not yet become an accepted aspect of corporate governance in Asia. Shareowner Rights Across the Markets, a publication of CFA Institute that provides individual reports for 28 different markets, surveyed whether shareholders are able to affect a company's remuneration (pay) policies through either binding or non-binding votes. It reports, in part:

In India, compensation policies and limits are approved by shareholders and may be altered by shareholders. Indian companies generally provide incentives through a commission on profits, rather than through options or other equity-based plans.

In Indonesia, the picture is somewhat mixed. Company practices vary in the approval of compensation for boards of directors. In some cases, compensation of board members is approved by a board of commissioners, but other companies require the approval of both commissioners and shareholders.

In China, shareholders are not usually given any vote on compensation issues or on a compensation report p! roduced by a company, although in the banking sector, shareholders have sometimes been given a binding vote on specific compensation, such as bonuses.

The Bottom Line
It's clear that there's a huge gap between how companies compensate executives and what they pay their regular workers. The SEC's proposed rule on CEO pay ratios, however, may be less about providing additional information to investors and more about creating public outrage over executive pay. After all, the SEC already requires companies to disclose the salaries of top management. The question is whether showing the disparity between the pay of executives and rank and file will prompt enough of a reaction from shareholders - or the public - to really make a difference.

How To Hedge Against A Government Shutdown

Rising tensions in Washington have trigged anxiety in the stock market. Investors are climbing a wall of worry. But those who want to protect their portfolio in the event of a government shutdown or contentious debt-ceiling debate might consider hedging with put options.

In a note published today, Goldman Sachs analysts Robert Boroujerdi, John Marshall, Michael Chanin and Krag Gregory say not much gfear has been priced into put options for either the S&P 500 or stocks with higher exposure to government spending. As a result, they suggest one of the following hedging strategies:

Buy the optimal SPX puts to hedge a 5% down-move: Buying a November 1650 put on the S&P 500 index costs 1.2% and Goldman estimates a 2.7-to-1 payout if the index falls 5% by mid-October. Beware of government exposure: The firm tracks a basket of more than 100 companies that derive at least 20% of their revenue from the government. Though the list includes defense contractors and tech giant, more than half of the names are health-care companies, including Amgen (AMGN), HCA (HCA) and UnitedHealth Group (UNH). Buy puts on stocks with high government exposure: November puts on government-exposed names cost 2.4% on average (5% out of the money strike).

What's The Deal With Big, Round Numbers?

The media's fascination with round numbers on the major indices - especially the Dow Jones Industrials (NYSE: DIA) - is one of the great mysteries of the investing game.

When the Dow breaks through an important milestone, there tend to be celebrations (remember Dow 10,000?). But whenever the venerable index fails to surmount a big, round number, there is usually disappointment.

The difference may be as little as twenty-five or thirty Dow points - or less than one quarter of a percent. But for some reason, breaking above what amounts to a line in the sand is good while failing to do so is bad.

Milestones Aren't What They Used To Be

Back in the old days, the big, round numbers meant more for at least a couple of reasons. First, the absolute levels of the indices were much lower. Thus, the Dow moving the 100 points from 4,900 to above 5,000 was a bigger deal than the 100 points needed to overtake 16,000.

In addition, investing in an index used to be tough. Back in the early 1980's mutual funds had barely taken root as an investment tool for the public. So, there was no passive vs. aggressive discussion (because there wasn't much in the way of index funds). And to be sure, there wasn't an ETF to replicate every index known to man. No, index investing wasn't a thing yet.

But regardless of the financial math involved, the media still loves to make big deal about those big, round numbers.

So, for those who pay attention to such things, imagine the excitement coming into Monday's session as the DJIA was flirting with 16,000, the S&P 500 (NYSE: SPY) was closing in on 1,800, the NASDAQ (NYSE: QQQ) was flirting with 4,000 (something it hasn't done in at least a decade) and while, considerably less important, the S&P Midcap (NYSE: MDY) was just above 1,300. In short, if a big, round number is important, then four of them must be monumental, right?

Top 5 Oil Companies To Own For 2014

Related: Does Yellen See A Bubble In Stocks?

Case In Point

Five minutes after the opening bell on Monday, the DJIA had broken on through to the other side of the semi-magical 16K level and all was right with the world. However, once Carl Icahn started yammering on about the idea that stocks are expensive, a series of sell programs materialized and within minutes, the financial anchors were nervously talking about the market's failure to hold those all-important levels.

Sure, the decline was algo-induced. Yes, it is true that the negative catalyst was (a) hard to identify and (b) of very little substance. But the bottom line in this game tends to be the bottom line. And the bottom line here was that the major indices all failed to close above those big, round numbers.

Why Does Anybody Care?

One of the reasons that some folks care about these so-called market milestones is they represent an external cue to take action. For example, if you believe that stocks have run too far, that valuations are too high, and that the only reason stocks continue to go up is an addiction to monetary meth, then a big, round number is a logical place to take a stand.

Given that the market has indeed enjoyed a strong run and that some valuations measures are becoming a bit stretched, Monday's big, round numbers represented a nice spot for the fast money, gambler types to take a shot at some downside.

Related: What Kind of Bull Market Is This Anyway?

Everybody knows that all good things come to an end at some point. Everybody knows that this bull move is getting long in the tooth. And everybody knows that if the market "fails" at a big, round number, disappointment ensues. Thus, those looking to slip into their bear costumes for a trader were likely eyeing Dow 16,000, S&P 1800, and NASDAQ 4000 - especially if they all were in play at the exact same time.

Who Will Prevail?

So, the question of the day is who will win this turf war? Will there be some additional downside action to test the bulls' mettle? And if so, will the dip-buyers continue to do their thing? Or will the bulls simply continue to trample anyone in their way into the end of the year (it has happened before)?

So stick around, because with not one, not two, not three,

Monday Market Movement – Up, of Course!

S&P 1,850?  Dow 16,000?  Why stop there?  

As you can see from the chart on the right, Emerging Markets are being dumped all year long, even relative to junk bonds and why not, when our Developled Markets move like Emerging Markets used to.  Of course, we never took big moves in Emerging Markets seriously because they inevitably became bubbles and imploded, right?

Imagine how dumb the last guy in Zimbabwe felt, who spent $40 Trillion for one share of Hippo Vally Estates (HIPO.zw).  Didn't those people know that their markets were only going up because their Reserve Bank kept printing money to pay their debt?  Of course, when you create a population of Trillionaires, things begin selling for Trillions of Dollars, right?

In the US, in 2013, we have 2010 new Billionaires, that's more Billionaires than there were in the World, TOTAL, in 2002.  In fact, there are now 1,426 people wakling this Earth who can lose $1,000,000 1,000 times and still be rich!  

Keep in mind that's what these people have LEFT – AFTER TAXES!  It used to be that we would tax back some of that wealth, to keep it circulating in the Global Economy but that's an old-fashioned notion that has been drummed out of our thought process by the media these same Billionaires have taken Global Control of along with the political processes of our Nations. 

And just how rich is the "average" Billionaire?  According to Forbes, our 1,426 Global Billionaires have 5,432 BILLION Dollars between them.  That's $3.8Bn EACH!  That's 10% of the Global GDP in the hands of the top 0.0000001%.  Japan's ENTIRE GDP is $5.9Tn, Germany's is $3.4Tn.  Carlos Slim ($73Bn) and the Koch Brothers ($68B) both have personal fortunes bigger than the GDP of most of the countries on Earth!

The Walton Family has $116Bn, yet the people who work for them require $1.7Bn a year in government assistance to stay above the poverty line.  A 1.5% tax against that $116Bn would allow taxpayers to stop having to bail out WMT workers so the Waltons can get richer next year.

 

 

IN PROGRESS

 

 

 

 

 

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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: Futures Pre-Market Outlook Markets

Originally posted here...

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Twitter options volume heavy on first day

Reuters Enlarge Image

SAN FRANCISCO (MarketWatch) -- Twitter Inc. shares slipped Friday after the social network got a sell rating from S&P Capital and options trading began on the New York Stock Exchange.

/quotes/zigman/23556538/delayed/quotes/nls/twtr TWTR 43.98, -0.71, -1.59% Twitter Inc.

Twitter (TWTR) shed 1.6% to close at $43.98, below its opening price of $45.10 when it went public last week. But the microblogging site's stock ended its first full trading week up 5.6%.

More than 122,000 Twitter options contracts traded across all exchanges, according to the NYSE. That would be considered very active for a stock on its first day of options trading.

Twitter on Friday was also given a sell rating and a price target of $30 by S&P Capital IQ.

In initiating coverage on the microblogging site's stock, S&P Capital analyst Scott Kessler said Twitter has "substantial revenue growth potential, given what we see as a notable multinational brand and user base, emerging monetization efforts, and strength in mobile." But he said the San Francisco-based social network "has been spending to support expansion, leading to considerable losses."

Click to Play CIA collecting Americans' personal info

Hot Blue Chip Stocks To Own Right Now

The Central Intelligence Agency is building a vast database of international money transfers that includes millions of Americans' financial and personal data, such as Social Security numbers, Photo: Getty Images

Other social media stocks were up. Facebook (FB)  rose a fraction to close at $49.01, while LinkedIn (LNKD)  gained 4.3% to close at $231.06 and Yelp Inc. (YELP)   added 5.2% to close at $70.77.

The tech sector also got a lift from shares of Agilent Technologies (A) , which were up 8.7% to close at $54.93 after the company reported better-than-expected profit.

On the downside, shares of Apple Inc. (AAPL)  fell a fraction to close at $524.99.

The Nasdaq Composite Index (COMP)  was up 0.3% to close at 3,986. The benchmark ended the week up 1.7%. The Morgan Stanley High Tech 35 Index (MSH)  and the Philadelphia Semiconductor Index (SOX)  were each up a fraction.

This Is My Favorite Kind of Money

My favorite kind of money does three things.

First, it grows. And it keeps growing every single year - by double digits.

Second, and unlike most corporate profits, it only gets taxed once.

And third, it's "lean." The businesses paying my favorite kind of money are very sensitive to cost, while retaining virtually no earnings. After all, they have to pass through nearly all their income to investors.

Few investments give you all three of these benefits, of course. That's what makes the shares below so attractive.

First, let's look at each of my "favorite money factors" more closely...

Factor No. 1 Double-Digit Growth Financial planners like to put you in one of two camps:

The "growth camp," which they say is right for younger investors, and the "income camp," which they say is proper for retirees and those close to retirement.

As we've said before, don't believe it. In reality, growth and income are inseparable.

There's only one reliable way to make 10% or more a year... especially now, in a rising interest rate environment.

We have to seek total return. For me, this means targeting companies that: generate decent current income, around 5% to 10% a year, and
support that income with strong underlying business fundamentals... resulting in another 5% to 10% of capital appreciation.

So, seeking yield alone is dangerous. It can suck you into bad investments. After all, a high yield is high for a reason.

Factor No. 2 A Brilliant Tax Structure

My favorite kind of money comes directly to me, and it doesn't make any stops along the way, either. That's why I like master limited partnerships (MLPs), real estate investment trusts (REITs), business development corporations (BDCs), and private equity firms.

You see, all of these companies are organized as pass-through entities. They're set up differently than traditional public corporations. While traditional corporate structures are designed to retain earnings, pass-through entities such as these are designed to funnel at least 90% of their earnings directly to shareholders.

And you'll get to keep far more of your pass-through profits, too.

For shareholders, pass-through securities offer the limited liability protection of traditional corporations, but without the infamous double tax bite you'd normally take from Uncle Sam.

Because pass-through securities' cash flow is paid out to shareholders - without corporate tax - and is only taxed once at the partner level.

The reason for this is due to the legal structure of pass-through securities, which, as I've mentioned, are set up to distribute at least 90% of their earnings directly to shareholders or unitholders.

This single taxation, as opposed to the double taxation on traditional corporations, means dividend payouts from pass-through entities are bigger - much bigger. As we'll see, this makes many of their annual dividend yields much more attractive.

How these entities treattheir own money is pretty impressive, too.

Factor No. 3 Highly Efficient Management

Because these companies are obligated to distribute some 90% of their earnings to unitholders, there is little in the way of retained earnings left... for management to spend on perks such as private jets and $500,000 holiday parties. This forces MLPs to be lean and efficient, compared to traditional corporations, fat with cash.

Because of lower taxes, cash-producing assets such as oil wells become more profitable under MLP ownership than corporate ownership. Many MLPs take advantage of their favorable tax structure by buying oil wells from energy companies barely making money on these wells after-tax.

You'll love the yield, too.

Of course, the most attractive aspect of pass-through securities is their outstanding yields. While most energy stocks offer yields of about 3%, most of the biggest energy MLPs offer yields in the 8% to 10% range. This kind of yield is something that's attractive to most investors, especially those who are focused on generating income from their existing assets.

I remember the 1980s, when Congress first approved the use of MLP structure in energy exploration and production firms. I knew then, as now, that this unique approach had a bright, and profitable, future ahead of it. It wasn't long after approval that other companies in other industries made the move to become pass-through entities. The tax advantages alone made sure that happened. And three decades later, we have much more to choose from: MLPs, REITs, BDCs, and private equities.

They're different securities, of course, but they're all my favorite kind of money.

What I'm Looking at Right Now

These shares all represent MLPs, REITS, BDCs, and private equity. There are plenty of great investments in this group, but these are my very favorites:

Vornado Realty Trust (NYSE: VNO)

Teekay LNG Partners L.P. (NYSE: TGP)

Kinder Morgan Energy Partners L.P. (NYSE: KMP)

The Blackstone Group L.P. (NYSE: BX)

Kohlberg Kravis Roberts & Co. L.P. (NYSE: KKR)

10 Best Stocks Under $10 to Buy Now

Popular Posts: 5 Stocks Under $10 a Share to Buy Now7 Generous Dividend Stocks Giving Big Cash Back to Shareholders5 Best Stocks for Continued Dividend Growth Recent Posts: 10 Best Stocks Under $10 to Buy Now How to Protect Your Gains with Partial Profits or Trailing Stops 5 Trading Ideas Overshadowed by the Twitter IPO View All Posts

Finding the best stocks under $10 per share is no easy task. Inherently, cheap stocks come with bigger risks because they are either very small companies or a big company that has been beaten down to a low price.

But the best cheap stocks do share some common characteristics: a bit of short-term momentum, good long-term outlook and preferably a balance sheet that is in the black and supporting dividend payments.

You can't find all of these things all the time, of course, but when looking for the best stocks under $10 this is a good checklist to keep in mind.

Most of the 10 picks on this list hit all those marks — and if they don't, they at least have an especially strong short-term performance or long-term outlook to make up for it.

Huntington Bancshares

One sector of the stock market that has big potential in 2014 is regional banks. And among these players, Huntington Bancshares (HBAN) is one of the strongest regional banks on Wall Street.

Broadly speaking, smaller banks can be safer than the big players like Bank of America (BAC) or JPMorgan Chase (JPM) because they aren't exposed to the same risks of massive lawsuits over subprime mortgages, and they don't operate aggressive trading desks that could cost them a fortune if the bets go bad.

Consider $13 billion in fines recently paid by JPM as a case study in the kind of pricey risks that come with major financial stocks.

Regional banks like HBAN are pickier with their mortgage exposure and thus safer. And while regional banks are certainly a cyclical play based on stronger business and consumer lending, there's a brighter outlook for 2014 as unemployment continues to mend.

Throw in a 2.3% dividend for this stock and you've got a decent winner under $10 a share.

Banco Santander

If you're looking for a more aggressive play in the financial sector, consider Spain financial player Banco Santander (SAN).

Battered by the downturn in Europe, Santander has had a lot of trouble since 2009 but is finally showing signs of turning around as Spain starts growing once more. Furthermore, Santander has extensive operations in Latin America to fuel growth in addition to being a play on Europe's recovery.

Adding the international stock like Banco Santander is easy, too, because the company trades on the New York Stock exchange just like Walmart (WMT).

If you're looking to get a position in Europe as the continent bounces back from recession or if you want to play the emerging market consumer in Latin America, SAN is a great way to do so. And with an annualized dividend yield of about 7%, this bank stock will pay you nicely even if the share price stays put.

Lionbridge Technologies

Lionbridge (LIOX) is the kind of cheap, small-cap stock that investors love. This player has soared 60% in the last three months thanks to nice earnings and improving investor sentiment.

LIOX provides language translation services for some of the leading international industrial and technology companies, including Microsoft (MSFT) and Google (GOOG). But in the past few years, the company has grappled with cut-backs and soft enterprise spending from its major clients.

After some lackluster results, the company had a much better second-quarter and said that activity among its leading customers was much better. The stock went on a tear soon after and has yet to cool off.

Margins could improve along with sales in the coming quarters to boost this cheap stock even higher. While there's always the risk that businesses will spend less on IT should the economy get rocky, recent improvement shows that LIOX has momentum on its side right now and remains a hot tech play.

Alcoa

Commodity stocks and materials stocks have been laggards for quite some time thanks to weak industrial demand and soft prices for base metals. But while Alcoa (AA) has bounced around between $8 and $10 since late 2011, there may be signs of a recovery ahead for this battered aluminum giant.

Consider that, after big losses in 2009 and a struggle to turn a profit all the way through fiscal 2012, Alcoa is projecting 70% earnings growth this year and another 30% earnings growth in fiscal 2014.

This is despite very soft aluminum pricing due to a strong dollar depressing commodity prices and weak manufacturing outlooks around the world, particularly in China.

However, China's economy is still growing at a brisk rate of about 7.5%, Europe is seeing a mild recovery now that it has exited recession, and America continues to slowly improve with each passing month.

AA stock is up about 10% since early October, so there's hope that the worst is behind this aluminum giant … even if it is no longer a Dow component after getting the boot from this benchmark index in September.

Annaly Capital Management

Interest rates have been rock-bottom since the Great Recession, but that will change in the years ahead. And when it does, Annaly Capital Management (NLY) is the best way to profit from rising rates.

Annaly is well position to profit because it is able to make more money from the loans it services in a higher interest rate environment. Annaly manages real-estate debt, so the amount of money it makes in interest payments rises with interest rates.

Also, Annaly pays a massive dividend of 13% as a result of this structure — passing on much of the interest payments it receives from borrowers directly to its shareholders.

If the housing market does crash a second time, however, Anally will be in dire straits as all those mortgages go bad. And a decrease in loan portfolio income would probably result in a quick draw-down of NLY's dividend, doubling investors' pain.

But considering the cheap share price, the potential for dividends in the short-term as well as appreciation in the long-term under a higher interest rate environment, NLY stock seems like a decent play to consider for more aggressive investors.

Advanced Semiconductor Engineering

Advanced Semiconductor Engineering (ASX) builds and distributes integrated circuits and other electronics. It's not as sexy as some mobile chipmakers, but thankfully it doesn't have to be — ASX is simply capitalizing on the general demand for microchips in everything from cars to computers to TVs.

The company is based in Taiwan, close to many Asian electronics manufacturers. And regardless of whether those manufacturers crank out something as hot as the iPhone from Apple (AAPL), the stock will still have a strong baseline simply because of how many high-tech devices exist in the world.

Year-to-date, ASX has underperformed but since August it has tacked on more than 20% thanks to improvement in operations. Also, the diverse business of Advanced Semiconductor makes it a bit more stable in the long haul than a company very reliant on laptops and desktops.

ASX is not a chip designer, so it doesn't have the same big margins as the companies who create the next hot chip … but it also doesn't have the same risk. That allows Advanced Semiconductor to keep cranking out products in a reasonable reliable fashion — and support a 3.6% dividend yield as a result.

Exco Resources

Exco Resources (XCO) is one of many oil and gas small-caps that could be great long-term buys considering the recent underperformance of the energy sector and the hopes of a recovery in 2014. But beware that, at least in the short-term, the momentum is pretty disappointing.

Exco is an onshore oil and natural gas play focused mainly on shale operations. Its focus is on using horizontal drilling to extract gas from shale formations in east Texas, north Louisiana, Appalachia and the Permian Basin in west Texas.

Year-to-date XCO is off about 20% thanks to weaker natural gas prices and a lack of demand.

But the good news is that Exco is the right size for these lean times and should be able to bounce back in 2014. For instance, in fiscal 2012, EXCO reduced drilling rigs from 24 to just five, and laid off more than 60% of its contractors and one-sixth of its full-time workers. All in all, it slashed capital expenses by more than a billion dollars. The restructuring hit the company hard, but has put it back on track.

The company also pays a nice 3.7% dividend to tide you over as you wait for a recovery in energy prices, demand or both.

Alpha Natural Resources

Coal stocks are hardly a low-risk or high-popularity investment right now. President Obama continues to hit the sector with harsh regulations for coal-fueled power plants, and the crash in commodity prices means that the coal sector is caught between two very harsh pressures.

But coal remains a huge export from the U.S. and a popular power source in China. That means companies like Alpha Natural Resources (ANR) aren't going away anytime soon — no matter how much the environmental lobby wishes that it were so.

Alpha Natural Resources is bleeding cash pretty badly, so that's a huge risk. However, the company was profitable as recently as 2010 and has taken some big steps in recent months to cut costs — including a big reduction in capital expenditures.

This is far from a sure thing, but ANR stock has already regained about 40% in the last three months despite still being in the red year-to-date, so there's clearly a short-term pop in sentiment.

If that continues, this cheap stock could be a high flier in 2014.

Lee Enterprises

Newspapers are hardly a growth industry, but after such a horrible fall from grace, publisher Lee Enterprises (LEE) may be a decent investment once more.

LEE stock is down almost 90% from its 2007 highs, and down about 40% from early 2010. The reasons are obvious — declining newspaper readership broadly, and the declining margins for news publishers as they trade "print dollars" for "digital dimes."

But the good news is that after some big losses over the last few years, Lee Enterprises is profitable once more and set to post its best earnings since 2010 — and only its second annual profit since before the Great Recession. As a result, the stock has almost tripled in 2013, going from about $1 a share to more than $3 in just six months.

The stock killed its dividend in 2008 amid the downturn, but there's a chance that the company could begin some modest form of payout again if it continues to stabilize.

There is admittedly big risk here, because print media is hardly a growth industry, but there is also stability since Lee tends to mostly serve small or midsized markets where the local news business remains very entrenched and part of the community. With about 1,500 daily and weekly newspapers, Lee could be a stable investment with modest upside in the year ahead now that it has "right-sized" its business.

Mitsubishi

Japanese stocks have been on a tear for about 12 months thanks to "Abenomics," a collection of loose central bank policies and stimulus measures that were meant to kick-start the nation's economy.

And though Mitsubishi UFJ Financial (MTU) has already tacked on an impressive 55% return since last November, there is still upside as Japan squeezes out a bit more growth and as the yen continues to trade at deep discounts to the Euro or the U.S. dollar.

Though it doesn't sit well with some investors, a weak currency boosts exports and can increase the corporate profits of businesses that do a lot of business abroad by simple virtue of a more favorable exchange rate.

Furthermore, the hopes of japan actually posting some decent growth — at least, relative to its minimal economic expansion since the late 1990s — could mean increased lending activity for MTU.

Throw in a nice 2.4% dividend and you have a pretty good case for a bargain buy in Mitsubishi Financial.

Jeff Reeves is the editor of InvestorPlace.com and the author of The Frugal Investor's Guide to Finding Great Stocks. Write him at editor@investorplace.com or follow him on Twitter at@JeffReevesIP. As of this writing, he did not own a position in any of the stocks named here.

5 Best Financial Stocks For 2014

Hot on the heels of a $15 million Consumer Financial Protection Bureau settlement with mortgage insurers Genworth Financial (NYSE: GNW  ) , MGIC Investment (NYSE: MTG  ) , Radian Group (NYSE: RDN  ) , and United Guaranty, a subsidiary of AIG (NYSE: AIG  ) , over kickbacks�paid to banks for mortgage insurance, comes some bad news in the same vein -- this time, for Bank of America (NYSE: BAC  ) .

Insurance and reinsurance
Even as the above insurers are forking over settlement checks to the CFPB, the bureau is investigating further the whole sordid mess that prompted the settlement in the first place. Now, it is turning its gaze to the recipients of those bribes: mortgage lenders like B of A.

But, that is a future concern. Right now, Bank of America will be forced to deal with homeowners who filed suit against the bank last year, claiming just the type of kickback scheme for which the insurers ponied up. B of A tried to get the claims dismissed, but a judge decided a little over a week ago that the bank will have to face those charges.�

5 Best Financial Stocks For 2014: Nuveen New York Select Quality Municipal Fund Inc.(NVN)

Nuveen New York Select Quality Municipal Fund, Inc. is a closed-ended fixed income mutual fund launched by Nuveen Investments, Inc. The fund is managed by Nuveen Asset Management. It invests in the fixed income markets of New York. The fund invests in tax exempt municipal bonds. It employs fundamental analysis, with bottom-up stock picking approach, to create its portfolio. The fund benchmarks the performance of its portfolio against the Standard & Poor?s New York Municipal Bond Index and Standard & Poor?s Insured National Municipal Bond Index. Nuveen New York Select Quality Municipal Fund, Inc. was formed on April 3, 1991 and is domiciled in the United States.

5 Best Financial Stocks For 2014: HCC Insurance Holdings Inc. (HCC)

HCC Insurance Holdings, Inc. underwrites non-correlated specialty insurance products worldwide. The company operates in five segments: U.S. Property & Casualty, Professional Liability, Accident & Health, U.S. Surety & Credit, and International. The U.S. Property & Casualty segment provides aviation, small account errors and omissions liability (E&O), public risk, contingency, disability, residual value, employment practices liability (EPLI), technical property, primary and excess casualty, and brown water marine insurance products, as well as title and mortgage reinsurance products in the United States. The Professional Liability segment offers directors� and officers� (D&O) liability, large account E&O liability, fiduciary liability, fidelity and bankers blanket bonds, and EPLI for the United States and International-based policyholders. The Accident & Health segment provides medical stop-loss, short-term domestic and international medical, HMO reinsurance, and medical excess coverages in the United States. The U.S. Surety & Credit segment offers contract surety bonds, commercial surety bonds, and bail bonds; credit insurance policies for export trade transactions and structured trade transactions; and political risk and letters of credit insurance products. The International segment provides energy, property treaty, liability, surety, credit, direct and facultative property, ocean marine, accident and health, and other smaller product lines for international customers. The company markets its products directly to consumers, as well as through a network of independent agents and brokers, producers, and managing general agents. HCC Insurance Holdings, Inc. was founded in 1974 and is headquartered in Houston, Texas.

Advisors' Opinion:

• [By WWW.GURUFOCUS.COM]

  HCC Insurance Holdings Inc. (HCC) underwrites non-correlated specialty insurance products worldwide. The company operates in five segments: U.S. Property and Casualty, Professional Liability, Accident and Health, U.S. Aug. 21, the company increased its quarterly dividend 36% to $0.225 per share. The dividend is payable October 1, 2013 and will be paid on or about Oct. 15, 2013. The yield based on the new payout is 2.1%.

Hot Undervalued Stocks To Own Right Now: First Citizens BancShares Inc.(FCNCA)

First Citizens BancShares, Inc. operates as the holding company for First-Citizens Bank & Trust Company that provides various banking products and services to retail and commercial customers in the United States. It offers transaction and savings deposit accounts, commercial and consumer loans, deposit and treasury services and products, cardholder and merchant services, wealth management services, and other commercial banking services. The company also operates as a broker-dealer in securities that provides investment services, including the sale of annuities and third party mutual funds, as well as title insurance agency services. In addition, it owns and leases real estate properties. The company provides its services through branch, telephone and online banking, and automated teller machine network. It operates branches in 17 states and the District of Columbia. The company was founded in 1893 and headquartered in Raleigh, North Carolina.

5 Best Financial Stocks For 2014: Eaton Vance Corporation (EV)

Eaton Vance Corp., through its subsidiaries, engages in the creation, marketing, and management of investment funds in the United States. It also provides investment management and counseling services to institutions and individuals. Further, the company operates as an adviser and distributor of investment companies and separate accounts. As of October 31, 2004, the company provided investment advisory or administration services to approximately 150 funds; approximately 1,300 separately managed individual and institutional accounts; and participated in approximately 40 retail-managed account broker/dealer programs. It markets and distributes shares of funds through a retail network of national and regional broker/dealers, banks, insurance companies, and financial planning firms. Eaton Vance Corp. was founded in 1944 and is headquartered in Boston, Massachusetts.

Advisors' Opinion:

• [By Rich Duprey]

  Investment management firm�Eaton Vance (NYSE: EV  ) announced yesterday its second-quarter dividend of $0.20 per share, the same rate it's paid for the past three quarters after raising the payout 5% from $0.19 per share.

• [By Marc Bastow]

  Investment management company Eaton Vance (EV) raised its quarterly dividend 10% to 22 cents per share, payable Nov. 13 to shareholders of record as of Oct. 31.
  EV Dividend Yield: 2.2%

• [By Value Digger]

  Halcon produced 18,348 boepd (81% oil and liquids) in Q4 2012, and it had 108.8 MMboe proved reserves as of December 2012. With Enterprise Value (EV) at $5.5 billion currently (including the recent additional debt), Halcon trades at $300,000 per flowing barrel, $50.5/boe of proved reserves and PBV=2.

5 Best Financial Stocks For 2014: Sunstone Hotel Investors Inc.(SHO)

Sunstone Hotel Investors, Inc. operates as a real estate investment trust. The firm engages in the acquisition, ownership, asset management, renovation, and sale of luxury, upper upscale, and upscale full-service hotels in the United States. Its portfolio also includes mid-scale hotels. Sunstone Hotel Investors was founded in 1995 and is based in Aliso Viejo, California.

5 Best Cheap Stocks To Watch Right Now

Reed Hastings wants Netflix (NASDAQ: NFLX  ) investing in more original series. And why not? House of Cards is already a success, and early signs point to a similarly strong showing for the horror series Hemlock Grove.

Trouble is, this sort of content doesn't come cheap. In a manifesto posted to Netflix's investor-relations site recently, Hastings confessed that original program development is "cash-intensive" and that producing more shows is likely to mean raising money from investors or partners:

As we expand Originals, they will consume cash. Since we are otherwise using domestic profits to fund international markets, we will raise capital as needed to fund the growth of Originals.

And that, Fool, is where Apple (NASDAQ: AAPL  ) comes in. The Mac maker should be investing in Netflix original programming.

Source: Netflix.

5 Best Cheap Stocks To Watch Right Now: S&P Smallcap 600(PH)

Parker Hannifin Corporation manufactures fluid power systems, electromechanical controls, and related components worldwide. Its Industrial segment offers pneumatic and electromechanical components, and systems; filters, systems, and instruments to monitor and remove contaminants from fuel, air, oil, water, and other liquids and gases; connectors that control, transmit, and contain fluid; hydraulic components and systems for builders and users of industrial and mobile machinery and equipment; critical flow components for process instrumentation, healthcare, and ultra-high-purity applications; and static and dynamic sealing devices. This segment sells its products to original equipment manufacturers (OEMs) and their replacement markets in the manufacturing, transportation, and processing industries. The company?s Aerospace segment provides flight control systems and components, including hydraulic, electrohydraulic, electric backup hydraulic, electrohydrostatic, and electro -mechanical components for precise control of aircraft rudders, elevators, ailerons, and other aerodynamic control surfaces. It also provides electronics thermal management heat rejection systems, and single-phase and two-phase heat collection systems for radar, ISAR, and power electronics. This segment markets its products primarily to OEMs in the commercial, military, and general aviation markets, as well as to end users. Its Climate and Industrial Controls segment offers systems and components primarily for use in the mobile and stationary refrigeration, and air conditioning industry; and in fluid control applications in various industries, such as processing, fuel dispensing, beverage dispensing, and mobile emissions. This segment serves OEMs and their replacement markets. Parker-Hannifin Corporation markets its products through direct-sales employees, independent distributors, wholesalers, and sales representatives. The company was founded in 1918 and is headquartered i n Cleveland, Ohio.

Advisors' Opinion:

• [By Charles Mizrahi, President and CEO, Hampton Investors, Inc.]

  Parker Hannifin (PH) generates strong revenue from its aerospace division, while its primary industrial segment is lagging.

  Overall, we like the company's balanced portfolio. PH had solid order rates this past year with backlog of $3.6 billion between its industrial and aerospace segments.

• [By Marc Bastow]

  Motion and control systems manufacturer Parker-Hannifin (PH) raised its quarterly dividend 4.6% to 45 cents per share, payable on Dec. 6 to shareholders of record as of Nov. 8. The increase marks the 57th consecutive annual dividend increase.
  PH Dividend Yield:�1.55%

5 Best Cheap Stocks To Watch Right Now: Global Payments Inc.(GPN)

Global Payments Inc. provides electronic transaction processing services for merchants, independent sales organizations (ISO), financial institutions, government agencies, and multi-national corporations located in the United States, Canada, Europe, and the Asia-Pacific region. It offers a comprehensive line of processing solutions for credit and debit cards; business-to-business purchasing cards; gift cards; and electronic check conversion and check guarantee, verification, and recovery, including electronic check services, as well as terminal management. The company also offers proprietary software products to establish revolving check cashing limits for the casinos? customers in the gaming industry. In addition, it sells, installs, and services automated teller machine and point of sale terminals; and provides card issuing services, including card management and card personalization. The company markets its products directly, as well as through ISOs, retail outlets, tra de associations, alliance bank relationships, and financial institutions. Global Payments Inc. has a joint venture with La Caixa Group to provide merchant acquiring services to merchants in Spain. Global Payments Inc. was founded in 2001 and is headquartered in Atlanta, Georgia.

Advisors' Opinion:

• [By Monica Gerson]

  Global Payments (NYSE: GPN) reported upbeat fiscal first-quarter results and raised its annual forecast. Global Payments named Jeffrey S. Sloan as its new chief executive and announced its plans to buy back up to $100 million of its common stock. Global Payments shares surged 6.80% to $54.15 in the after-hours trading session.

10 Best Value Stocks To Buy Right Now: Ur Energy Inc(URG)

Ur-Energy Inc., an exploration stage junior mining company, engages in the identification, acquisition, evaluation, exploration, and development of uranium mineral properties. The company has 13 projects located in Wyoming and Nebraska, the United States; and 3 exploration projects located in the Northwest Territories and Nunavut, Canada. Its landholdings cover approximately 90,000 acres in the United States and approximately 140,000 acres in Canada. The company was founded in 2004 and is headquartered in Littleton, Colorado.

Advisors' Opinion:

• [By John Udovich]

  Since the start of the week, small cap nuclear fuel stock USEC Inc (NYSE: USU) more than doubled for investors, something that has not happened for investors in uranium stocks like Uranium Resources, Inc (NASDAQ: URRE), Denison Mines Corp (NYSEMKT: DNN), Ur-Energy Inc. (NYSEMKT: URG) and Uranerz Energy Corp (NYSEMKT: URZ). To recap: USEC Inc closed at the $6 level on Friday, but then it surged to the $15 level on Monday only to open at the $10 level on Tuesday when it ultimately closed at $12.46. So what in the world is going on with USEC Inc and is it time to revisit nuclear fuel and uranium stocks?

5 Best Cheap Stocks To Watch Right Now: First Busey Corporation(BUSE)

First Busey Corporation operates as the bank holding company for Busey Bank that provides various retail and commercial banking products and services to individual, corporate, institutional, and governmental customers in the United States. It accepts noninterest-bearing demand, interest-bearing transaction, savings, money market, and time deposits. The company?s loan portfolio includes commercial, agricultural, and real estate loans; individual, consumer, installment, first mortgage, and second mortgage loans; and commercial real estate, residential real estate, and consumer loans. It also provides money transfer, safe deposit, fiduciary, automated banking, and automated fund transfer services. In addition, the company provides asset management, brokerage, and fiduciary services, including financial planning, investment management, retirement planning, brokerage, and trust and estate advisory services to individuals; investment management, business succession planning, an d employee retirement plan services to businesses; and investment management, investment strategy consulting, and fiduciary services to foundations. Further, it offers pay processing solutions, such as walk-in payments processing for payments delivered by customers to retail pay agents; online bill payment solutions for payments made by customers on a billing company?s Website; customer service payments for payments accepted over the telephone; direct debit services; electronic concentration of payments delivered by the automated clearing house network; money management software and credit card networks; and lockbox remittance processing of payments delivered by mail. The company has 33 locations in Illinois, 7 locations in southwest Florida, and 1 location in Indianapolis, Indiana. First Busey Corporation was founded in 1868 and is headquartered in Champaign, Illinois.

5 Best Cheap Stocks To Watch Right Now: Sprott Resource Lending Corp.(SILU)

Sprott Resource Lending Corp., a natural resource lender, provides bridge and mezzanine financing to precious and base metal mining, exploration, and development companies, as well as energy companies worldwide. The company was formerly known as Quest Capital Corp. and changed its name to Sprott Resource Lending Corp. in September 2010. Sprott Resource Lending Corp. was incorporated in 1980 and is based in Toronto, Canada.

Hot Dividend Stocks To Buy Right Now

On Tuesday, Artesian Resources (ARTNA) declared a quarterly dividend of 20.88 cents per share, a 1.5% increase from the company’s previous quarterly payout.

The Newark, Delaware-based water distribution company previously had a yearly payout of 82.28 cents, and will now pay 83.52 cents per year.

The dividend will be payable on November 22nd, 2013 to all shareholders of record on November 8th, 2013. The ex-dividend date is November 6th, 2013.

ARTNA shares were up 6 cents, or .27%, at Tuesday’s market close. The company’s stock is down just over 3% YTD.

Hot Dividend Stocks To Buy Right Now: Horizon Lines Inc.(HRZ)

Horizon Lines, Inc., through its subsidiaries, provides container shipping and integrated logistics services. It ships a range of consumer and industrial items, such as refrigerated and non-refrigerated foodstuffs, household goods, auto parts, building materials, and other materials used in manufacturing. The company offers container shipping services to ports within the continental United States, Puerto Rico, Alaska, Hawaii, Guam, the U.S. Virgin Islands, and Micronesia. Its integrated logistics services comprise rail, truck brokerage, warehousing, distribution, expedited logistics, and non-vessel operating common carrier operations. Horizon Lines, Inc. also offers terminal services. The company operates terminals in Alaska, Hawaii, and Puerto Rico; contracts for terminal services in seven ports in the continental United States; and the ports in Guam, Yantian, and Xiamen, China, as well as Kaohsiung, Taiwan. In addition, it offers inland transportation services. As of Dec ember 20, 2009, the company owned or leased approximately 20 vessels and 18,500 cargo containers. Horizon Lines, Inc. serves consumer and industrial products companies, as well as various agencies of the U.S. government, including the Department of Defense and the U.S. Postal Service. The company was founded in 1956 and is based in Charlotte, North Carolina.

Hot Dividend Stocks To Buy Right Now: Windstream Corporation(WIN)

Windstream Corporation provides communications and technology solutions in the United States. The company offers various solutions, including IP-based voice and data services, multiprotocol label switching (MPLS) networking, data center and managed services, hosting services, and communications systems to businesses and government agencies. It also provides high-speed Internet, voice, and digital television services to residential customers primarily located in rural areas. The company?s data services include data center and managed hosting, MPLS networking, and dedicated access, as well as high-speed Internet to business customers; integrated solutions consist of multiple voice and data services delivered over an IP connection; voice services comprise local and long distance, call waiting, caller identification, and voicemail; and special access services include point-to-point switching arrangements for voice and data traffic. In addition, it provides wholesale services, which primarily include voice and data services on a wholesale basis to other carriers; usage sensitive services to long distance companies; and other local exchange carriers for access to the network in connection with the completion of long-distance calls, as well as reciprocal compensation received from wireless and other local connecting carriers for the use of its facilities. As of June 30, 2011, the company served approximately 3.3 million access lines, 1.3 million high-speed Internet customers, and operated approximately 60,000 fiber route miles. Windstream Corporation is based in Little Rock, Arkansas.

Advisors' Opinion:

• [By Selena Maranjian]

  What to seek and avoid
  When you're seeking dividend investments, go ahead and favor hefty dividend yields, but be wary when they're really hefty, because they might be unsustainable. Seek healthy and growing companies, too, and ones that are not paying out more in dividends than they're actually earning. For a sobering lesson, check out an article from October of last year by my colleague Brian Stoffel, who wrote about "3 Extremely Dangerous Dividends," discussing rural telecom specialist Windstream (NASDAQ: WIN  ) , supermarket concern Roundy's (NYSE: RNDY  ) , and electronics retailer RadioShack (NYSE: RSH  ) . It hasn't been much more than five months since the article was published, and while Windstream's payout is intact, RadioShack's has disappeared, and Roundy's has roughly been cut in half. Windstream may have low profit margins and a lot of debt, but it's been investing in new directions and growing its revenue. Roundy's is also saddled with debt and low margins, and operates in a tough industry. Still, it's at least free-cash-flow positive. RadioShack has long been struggling and recently posted shrinking quarterly revenue and widening losses. One ray of hope is its new CEO, turnaround specialist Joseph Magnacca.

• [By Muhammad Bazil]

  Windstream (WIN) is a leading provider of cutting-edge telecom services and infrastructure, including data and voice services, cloud computing, managed IP networking and network security to U.S. businesses (B2B) as well as broadband, home phone, digital TV and security pack services to residential consumers (B2C). On September 3, 2013, Windstream acquired a holding company and has been renamed into Windstream Holdings. According to the company's announcement:

• [By Dan Radovsky]

  Investors, if you are considering buying stock in Windstream (NASDAQ: WIN  ) , please ask yourselves this question: "Am I gong to purchase part of a company I think will continue to grow its telecom business, or am I only attracted to its high-yield dividend?"

Hot Warren Buffett Companies To Invest In Right Now: Constellation Energy Group Inc. (CEG)

Constellation Energy Group, Inc. operates as an energy company in the United States and Canada. The company develops, owns, operates, and maintains fossil and renewable generating facilities. As of December 31, 2010, it holds interests in qualifying facilities and power projects totaling to 9,030 megawatt (MW), as well as manages approximately 1,100 MW associated with long-dated tolling agreements. The company also provides operation and maintenance services, including testing and start-up to the owners of electric generating facilities. In addition, it offers electricity, natural gas, and other energy products and services to wholesale and retail electric and natural gas customers. The company supplies approximately 119 million megawatt hours (MWH) of aggregate electricity to distribution utilities, municipalities, residential, commercial, industrial, and governmental customers; approximately 334 million British Thermal Units of natural gas to residential, commercial, ind ustrial, and governmental customers; and approximately 7.8 million tons of coal primarily to its own fleet. Further, it manages generation facilities and natural gas properties; provides risk management services; trades energy and energy-related commodities; manages upstream natural gas activities; designs, constructs, and operates renewable energy, heating, cooling, and cogeneration facilities; provides home improvements; and engages in the sale of electric and gas appliances, and servicing of heating, air conditioning, plumbing, electrical, and indoor air quality systems. Additionally, the company purchases, transmits, distributes, and sells electricity, as well as purchases, transports, and sells natural gas in central Maryland. It maintains approximately 240 substations and approximately 1,300 circuit miles of transmission lines, and approximately 24,800 circuit miles of distribution lines. The company was founded in 1906 and is based in Baltimore, Maryland.

Hot Dividend Stocks To Buy Right Now: S&P GSCI(GD)

General Dynamics Corporation, an aerospace and defense company, provides business aviation; combat vehicles, weapons systems, and munitions; military and commercial shipbuilding; and communications and information technology products and services worldwide. Its Aerospace group designs, manufactures, and outfits various large and mid-cabin business-jet aircraft; provides maintenance, repair work, fixed-based operations, and aircraft management services; and performs aircraft completions for aircraft. The company?s Combat Systems group offers tracked and wheeled military vehicles, weapons systems, and munitions. Its product lines include wheeled combat and tactical vehicles; battle tanks and infantry vehicles; munitions and propellant; rockets and gun systems; and axle and drivetrain components and aftermarket parts. This group also manufactures and supplies engineered axles, suspensions, and brakes for heavy-load vehicles for military and commercial customers. The company Advisors' Opinion:

• [By Katie Spence]

  Who builds what
  Both General Dynamics' (NYSE: GD  ) Bath Iron Works shipbuilding company and Huntington Ingalls Industries' (NYSE: HII  ) Ingalls Shipbuilding build the DDG 51 Aegis Destroyer, with the Navy typically buying ships from each builder.

• [By Rich Smith]

  The Department of Defense issued $312.5 million worth of new contract awards Monday. Notable winners included subsidiaries of two major defense contractors, FLIR Systems (NASDAQ: FLIR  ) and General Dynamics (NYSE: GD  ) .

• [By Rich Smith]

  Huh? What?
  I know. That hardly seems to make sense, does it? Oshkosh simply crushed analyst earnings estimates for the quarter, delivering $0.97 per share in profit where only $0.86 were forecast. It added a dime to its full-year forecast as well, predicting that earnings could rise as high as $3.15 by year-end. First-half operating profit margins, at 5.8%, still fall far short of rival armored-vehicle makers Textron (NYSE: TXT  ) and General Dynamics (NYSE: GD  ) . But Oshkosh is now neck-and-neck with heavy-equipment maker Terex (NYSE: TEX  ) , and is simply smoking unprofitable rival MRAP maker Navistar (NYSE: NAV  ) .

Hot Dividend Stocks To Buy Right Now: ConocoPhillips(COP)

ConocoPhillips operates as an integrated energy company worldwide. The company?s Exploration and Production (E&P) segment explores for, produces, transports, and markets crude oil, bitumen, natural gas, liquefied natural gas, and natural gas liquids. Its Midstream segment gathers, processes, and markets natural gas; and fractionates and markets natural gas liquids in the United States and Trinidad. The company?s Refining and Marketing (R&M) segment purchases, refines, markets, and transports crude oil and petroleum products, such as gasolines, distillates, and aviation fuels. Its Chemicals segment manufactures and markets petrochemicals and plastics. This segment offers olefins and polyolefins, including ethylene, propylene, and other olefin products; aromatics products, such as benzene, styrene, paraxylene, and cyclohexane, as well as polystyrene and styrene-butadiene copolymers; and various specialty chemical products comprising organosulfur chemicals, solvents, catalyst s, drilling chemicals, mining chemicals, and engineering plastics and compounds. The company?s Emerging Businesses segment develops new technologies and businesses. It focuses on power generation; and technologies related to conventional and nonconventional hydrocarbon recovery, refining, alternative energy, biofuels, and the environment. This segment also offers E-Gas, a gasification technology producing high-value synthetic gas. ConocoPhillips was founded in 1917 and is based in Houston, Texas.

Advisors' Opinion:

• [By Matt DiLallo]

  Even if the Cline Shale doesn't live up to its lofty estimates, the Permian Basin has plenty of potential for investors. The play is really the gift that keeps on giving for oil producers. Take ConocoPhillips' (NYSE: COP  ) position in the play. The company has about a million net acres and is investing about $3 billion over its five-year capital plan to add about 40,000 barrels of oil equivalent production per day by 2017. After offsetting natural decline, that's a 7% annual production growth rate. In addition to that, the company is actively exploring emerging growth opportunities in the play including the Wolfcamp and Bone Spring.

• [By Claudia Assis]

  Major oil companies were mixed. Exxon shares rose 1%, and shares of ConocoPhillips (COP) �advanced 1.1%. Shares of Chevron, however, fell 0.1%.

Hot Dividend Stocks To Buy Right Now: FirstEnergy Corporation(FE)

Firstenergy Corp. operates as a diversified energy company. The company, through its subsidiaries and affiliates, involves in the generation, transmission, and distribution of electricity, as well as energy management and other energy-related services. It serves approximately 6 million customers within 67,000 square miles through 10 utility operating companies in Ohio, Pennsylvania, New Jersey, West Virginia and Maryland. The company was founded in 1996 and is headquartered in Akron, Ohio.

Advisors' Opinion:

• [By Justin Loiseau]

  Cutting back on coal
  Both Duke Energy stock and AEP stock have long relied on coal, clean or not, to power their profits. But some historically coal-centric utilities are calling it quits. FirstEnergy (NYSE: FE  ) counts on coal for around 64% of its total generation capacity�and had to idle several of its power plants last year as cheap natural gas prices and EPA regulations cut out coal's competitiveness. In early 2012, the utility announced plans to retire a whopping 3,400 MW of coal-fired power generation, more than a quarter of its current capacity.�

Hot Dividend Stocks To Buy Right Now: Himax Technologies Inc.(HIMX)

Himax Technologies, Inc., together with its subsidiaries, designs, develops, and markets semiconductors for flat panel displays. Its products include display drivers and timing controllers for various thin film transistor liquid crystal displays (TFT-LCD) panels, which are used in desktop monitors, notebook computers, televisions, and mobile handsets, as well as consumer electronics products comprising netbook computers, digital cameras, mobile gaming devices, portable DVD players, digital photo frame, and car navigation displays; and TFT-LCD television and monitor semiconductor solutions. The company also provides liquid crystal on silicon (LCOS) products for palm-size mobile projectors; power management integrated circuits, which include drivers, amplifiers, DC to DC converters and other semiconductors; complementary metal oxide semiconductor image sensors for camera-equipped mobile devices, such as mobile phones and notebook computers with a focus on lowlight image and video quality; and wafer level optics products. It serves TFT-LCD panel manufacturers, mobile device module manufacturers, and television makers. Himax Technologies, Inc. was founded in 2001 and is headquartered in Tainan, Taiwan.

Advisors' Opinion:

• [By John Udovich]

  On Monday, small cap Taiwanese advanced display maker�Himax Technologies, Inc (NASDAQ: HIMX) announced an agreement with Google�(NASDAQ: GOOG) where the later agreed to invest in the company's subsidiary, Himax Display Inc, fueling ever more speculation about Google Glass���a pair of glasses that will act like a wearable�smartphone. But what do we know about this Taiwanese small cap and is it enough for new investors to jump aboard?

Hot Dividend Stocks To Buy Right Now: British/Swiss Franc(UN)

UNILEVER N.V. operates as a fast-moving consumer goods company in Asia, Africa, Europe, and the Americas. It offers personal care products, including skin care and hair care products, deodorants, and oral care products under the brand names of Axe, Brylcreem, Dove, Fissan, Lifebuoy, Lux, Pond's, Radox, Rexona, Signal & Close Up, Simple, St Ives, Sunsilk, TRESemm� Vaseline, and VO5. The company also provides home care products comprising laundry tablets, powders and liquids, soap bars, and various cleaning products under the Cif, Comfort, Domestos, Omo, Radiant, Sunlight, and Surf brand names. In addition, it offers food products consisting of soups, bouillons, sauces, snacks, mayonnaise, salad dressings, margarines and spreads, as well as cooking products, such as liquid margarines. The company markets its food products under the brand names of Becel/Flora, Bertolli, Blue Band, Rama, Hellmann?s, Amora, and Knorr. Further, it provides refreshment products, which include ice cream, tea-based beverages, weight-management products, and nutritionally enhanced staples under the brand names of Heartbrand, Lipton, and Slim?Fast. UNILEVER N.V. sells its products through its own sales force, as well as through independent brokers, agents, and distributors to chain, wholesale, co-operative and independent grocery accounts, food service distributors, and institutions. The company, formerly known as Naamlooze Vennootschap Margarine Unie, was founded in 1927 and is based in Rotterdam, the Netherlands. Unilever N.V. is a subsidiary of The Unilever Group.