Top 5 Oil Companies To Buy For 2014

In the U.S., when the topic of clean energy comes up, we like to debate concepts like climate change or global warming, turning it into a political debate more than a strategic one. Subsidies to industries such as wind or solar, no matter how small, take criticism from politicians and the media while the government continues to subsidizes oil, gas, coal, and nuclear production to the tune of billions of dollars each year. We neglect to account for externalities such as the cost of war ships keeping the Suez Canal open when Iran threatens to close it, oil spills inland and offshore, the wars in Iraq, and the limited liability given to the operators' nuclear plants. If Fukishima happened here, it would be no problem for U.S. companies -- Uncle Sam would pick up the tab.

In China, the energy debate is very different. When China sees its imports of coal rising and dependence on foreign oil growing, it springs into action. Not by screaming, "Drill, baby, drill," but by investing billions of dollars in home-grown energy sources. Yes, I'm talking about clean, renewable energy, and China's investment in these energy sources make U.S. subsidies look like the half-hearted effort they are.

Top 5 Oil Companies To Buy For 2014: Halcon Resources Corp (HK)

Halcon Resources Corporation (Halcon Resources), incorporated on February 5, 2004, is an independent energy company focused on the acquisition, production, exploration and development of onshore liquids-rich oil and natural gas assets in the United States. The Company has oil and natural gas reserves located primarily in Texas, North Dakota, Louisiana, Oklahoma and Montana. On August 1, 2012, the Company acquired GeoResources by merger. On December 6, 2012, the Company completed the acquisition of entities owning approximately 81,000 net acres prospective for the Bakken / Three Forks formations primarily located in Williams, Mountrail, McKenzie and Dunn Counties, North Dakota (the Williston Basin Assets), from Petro-Hunt, L.L.C. and Pillar Energy, LLC (the Petro-Hunt parties). As of December 31, 2012, the Company has working interests in approximately 128,000 net acres prospective for the Bakken / Three Forks formations in North Dakota and Montana.

The Company�� Woodbine / Eagle Ford acreage is prospective for the Woodbine, Eagle Ford and other formations, with targeted depths ranging anywhere from 7,000 feet to 10,400 feet. As of December 31, 2012, The Company has approximately 198,000 net acres leased or under contract primarily in Leon, Madison, Grimes, Brazos, and Polk Counties, Texas. The Company is the operator and has a 100% working interest in more than 12,000 net acres in Wichita and Wilbarger Counties, Texas that it is actively water flooding in shallow Cisco aged Pennsylvania sandstone and limestone reservoirs. As of December 31, 2012, the Company produced 484 million barrels of oil equivalent from approximately 700 active producing wells and approximately 230 active water injection wells.

The Company�� position in the La Copita Field covers 3,720 gross acres and 2,829 net acres in Starr County, Texas. As of December 31, 2012, the Company�� average net daily production was 623 barrels of oil equivalent per day. The Company operates 100% of this production a! nd its working interest ranges from 75% to 100%. The Company has various other oil and natural gas properties with varying working interests located across the United States, including the Austin Chalk Trend and Eagle Ford Shale in Texas, the Fitts-Allen Fields in Central Oklahoma, and various other areas across South Louisiana, Montana, North Dakota, New Mexico, and West Virginia.

Advisors' Opinion:

• [By Roberto Pedone]

  One energy player that insiders are active in here is Halcon Resources (HK), which is engaged in the acquisition, development, exploitation, exploration and production of oil and natural gas properties. Insiders are buying this stock into notable weakness, since shares are off by 22% so far in 2013.

  Halcon Resources has a market cap of $1.99 billion and an enterprise value of $4.71 billion. This stock trades at a premium valuation, with a trailing price-to-earnings of 112.50 and a forward price-to-earnings of 12.56. Its estimated growth rate for this year is 900%, and for next year it's pegged at 79.2%. This is not a cash-rich company, since the total cash position on its balance sheet is $3.06 million and its total debt is $2.71 billion.

  A director just bought 200,000 shares, or about $1.02 million worth of stock, at $5.10 per share. A beneficial owner also just bought 5.2 million shares, or about $26.44 million worth of stock, at $5.10 per share.

  From a technical perspective, HK is currently trending below both its 50-day and 200-day moving averages, which is bearish. This stock has been downtrending badly for the last six months, with shares moving lower from its high of $8.12 to its recent low of $4.92 a share. During that downtrend, shares of HK have been making mostly lower highs and lower lows, which is bearish technical price action. That said, this stock has started to find some buying interest off some previous support areas at $4.92 to $5.10 a share.

  If you're bullish on HK, then look for long-biased trades as long as this stock is trending above some key near-term support levels at $5.10 to $4.92 and then once it breaks out back above its 50-day at $5.67 a share with high volume. Look for a sustained move or close above that level with volume that hits near or above its three-month average volume of 5.14 million shares. If that breakout triggers soon, then HK will set up to re-test or possibly take out its next major overhead resistance levels at $6.11 to $6.54 a share. Any high-volume move above those levels will then give HK a chance to tag $6.75 to $6.84 a share.

Top 5 Oil Companies To Buy For 2014: Nuverra Environmental Solutions Inc (NES)

Nuverra Environmental Solutions, Inc., formerly Heckmann Corporation, incorporated on May 29, 2007, provides environmental solutions to protect, enhance and advance environmental sustainability. Nuverra provides full-cycle environmental solutions to a national customer base consisting of two distinct end markets: Shale Solutions and Industrial Solutions.

The Company is focused on the removal, treatment, recycling, transportation and disposal of restricted solids, fluids and hydrocarbons for E&P customers. It also provides a one-stop-shop for energy recovery, re-refining and recycling of used motor oil and oily wastewater; plus a closed loop spent antifreeze program for retail, automotive and manufacturing customers. Nuverra specializes in providing environmentally compliant and sustainable solutions to a national footprint of customers.

Shale Solutions

Shale Solutions provides environmental solutions for unconventional oil and gas exploration and production, including the delivery, collection, treatment, recycle, and disposal of restricted environmental products used in the development of unconventional oil and natural gas fields. The Company operates in select shale areas in the United States, including the Marcellus/Utica, Eagle Ford, Bakken, Haynesville, Barnett, Permian, Mississippian Lime and Tuscaloosa Marine Shale areas. It serves customers seeking fresh water acquisition, temporary water transmission and storage, transportation, treatment or disposal of fresh water and complex water flows, such as flowback and produced brine water, in connection with shale oil and gas hydraulic fracturing drilling or hydrofracturing operations. The Company also transports fresh water for production and provides services for site preparation, water pit excavations and remediation.

Industrial Solutions

Industrial Solutions provides environmental and waste recycling solutions to its customers through collection and recycling services for waste prod! ucts, including UMO, which the Company processes and sells as RFO, oily water, spent antifreeze, used oil filters and parts washers, and provision of complementary environmental services for a diverse commercial and industrial customer base. Industrial Solutions operates a scalable network infrastructure of 34 processing facilities, approximately 385 tanker trucks, vacuum trucks and trailers and over 200 railcars. With a geographic presence in 19 states in the Western United States stretching from Washington to Texas, Industrial Solutions provides its services to a diverse range of more than 20,000 commercial and industrial customer locations.

Best Canadian Stocks To Buy Right Now: Exxon Mobil Corporation(XOM)

Exxon Mobil Corporation engages in the exploration and production of crude oil and natural gas, and manufacture of petroleum products, as well as transportation and sale of crude oil, natural gas, and petroleum products. The company manufactures and markets commodity petrochemicals, including olefins, aromatics, polyethylene and polypropylene plastics, and other specialty products. As of December 31, 2010, it operated 35,691 gross and 30,494 net operated wells. The company has operations in the United States, Canada/South America, Europe, Africa, Asia, and Australia/Oceania. Exxon Mobil Corporation was founded in 1870 and is based in Irving, Texas.

Advisors' Opinion:

• [By Hawkinvest]

  Exxon (XOM) is a must-own stock for many oil investors. This company has a strong balance sheet and a very significant reserve base, which grows in value with the price of oil. Exxon recently reported solid results with earnings for the fourth quarter of 2011 coming in at $1.97 per share. The company also reported that it bought back about $5 billion worth of shares. Weaker margins in the refinery business did impact results, but overall, the report shows that the company is poised for a solid year ahead. Exxon has a very strong balance sheet and it can afford to continue buying back shares which will help to boost future earnings. This stock was trading for about $80 per share in December, but has been trending higher. Exxon shares have recently been finding support around $83 per share, so buying on dips at that level are particularly attractive.< /span>

  Here are some key points for XOM:

  Current share price: $86.57

  The 52 week range is $67.03 to $88.23

  Earnings estimates for 2011: $8.25 per share

  Earnings estimates for 2012: $8.99 per share

  Annual dividend: about $1.88 per share which yields about 2.2%

Top 5 Oil Companies To Buy For 2014: Transportadora de Gas del Sur SA (TGS)

Transportadora de Gas del Sur S.A. (TGS) is engaged in the transportation of natural gas and production and commercialization of natural gas liquids (NGL). TGS�� pipeline system connects major gas fields in southern and western Argentina with gas distributors and industries in those areas and in the greater Buenos Aires area. The Company also renders midstream services, which consist of gas treatment, removal of impurities from the natural gas stream, gas compression, wellhead gas gathering and pipeline construction, operation, and maintenance services. The Company operates in three segments: natural gas transportation services through its pipeline system; NGL production and commercialization, and other services, which include midstream and telecommunication services.

During the year ended December 31, 2009, the Company�� gas transportation represented approximately 42% of total net revenues. During 2009, its NGL production and commercialization segment accounted for 50% of the total revenues of the Company. During 2009, its other services segment accounted for 8% of total revenues of the Company. Its other services segment consists of midstream and telecommunications services. Through midstream services, TGS provides integral solutions related to natural gas from wellhead up to the transportation systems. The services consists of gas gathering, compression and treatment, as well as construction, operation and maintenance of pipelines, which are generally rendered to natural gas and oil producers at wellhead. The customers��portfolio also includes distribution companies, industrial users, power plants and refineries.

During 2009, the Company provided a range of technical services to different customers. The services consisted of connections to the transportation system, engineering inspections, project management and professional technical counseling. Telecommunication services are provided through Telcosur S.A. (Telcosur), who renders services both as an independent c! arrier of carriers and to corporate clients within its area. Telcosur has a digital land radio connection system.

Top 5 Oil Companies To Buy For 2014: Chevron Corporation(CVX)

Chevron Corporation, through its subsidiaries, engages in petroleum, chemicals, mining, power generation, and energy operations worldwide. It operates in two segments, Upstream and Downstream. The Upstream segment involves in the exploration, development, and production of crude oil and natural gas; processing, liquefaction, transportation, and regasification associated with liquefied natural gas; transportation of crude oil through pipelines; and transportation, storage, and marketing of natural gas, as well as holds interest in a gas-to-liquids project. The Downstream segment engages in the refining of crude oil into petroleum products; marketing of crude oil and refined products primarily under the Chevron, Texaco, and Caltex brand names; transportation of crude oil and refined products by pipeline, marine vessel, motor equipment, and rail car; and manufacture and marketing of commodity petrochemicals, plastics for industrial uses, and fuel and lubricant additives. It a lso produces and markets coal and molybdenum; and holds interests in 13 power assets with a total operating capacity of approximately 3,100 megawatts, as well as involves in cash management and debt financing activities, insurance operations, real estate activities, energy services, and alternative fuels and technology business. Chevron Corporation has a joint venture agreement with China National Petroleum Corporation. The company was formerly known as ChevronTexaco Corp. and changed its name to Chevron Corporation in May 2005. Chevron Corporation was founded in 1879 and is based in San Ramon, California.

Advisors' Opinion:

• [By Jonas Elmerraji]

  Oil and gas supermajor Chevron (CVX) is another name that's showing investors a bullish technical setup right now. Chevron is forming a textbook ascending triangle pattern, a price setup that we've seen a lot of on the way up in 2013. Here's how to trade it.

  Chevron's ascending triangle is formed by horizontal resistance above shares at $127.50 and uptrending support below shares. Basically, as CVX bounces in between those two technical price levels, it's getting squeezed closer and closer to a breakout above $127.50. When that breakout happens, we've got our buy signal.

  The energy sector spent the last quarter as a bit of a laggard, but it's been heating back up in the last month and change. With a breakout trade getting close to triggering here, Chevron offers one of the best-in-breed ways to play the trend this summer.

• [By GuruFocus] Tom Gayner initiated holdings in Chevron Corp. His purchase prices were between $114.81 and $126.43, with an estimated average price of $120.86. The impact to his portfolio due to this purchase was 0.18%. His holdings were 43,000 shares as of 06/30/2013.
  
  New Purchase: Brookfield Property Partners LP (BPY)
  
  Tom Gayner initiated holdings in Brookfield Property Partners LP. His purchase prices were between $19.57 and $23.64, with an estimated average price of $21.67. The impact to his portfolio due to this purchase was 0.13%. His holdings were 175,122 shares as of 06/30/2013.
  
  New Purchase: ONEOK, Inc. (OKE)
  
  Tom Gayner initiated holdings in ONEOK, Inc.. His purchase prices were between $41.16 and $52.13, with an estimated average price of $46.98. The impact to his portfolio due to this purchase was 0.1%. His holdings were 70,000 shares as of 06/30/2013.
  
  New Purchase: Blackstone Group LP (BX)
  
  Tom Gayner initiated holdings in Blackstone Group LP. His purchase prices were between $19.1 and $23.45, with an estimated average price of $21.2. The impact to his portfolio due to this purchase was 0.09%. His holdings were 116,900 shares as of 06/30/2013.
  
  New Purchase: BlackRock Inc (BLK)
  
  Tom Gayner initiated holdings in BlackRock Inc. His purchase prices were between $245.3 and $291.69, with an estimated average price of $267.9. The impact to his portfolio due to this purchase was 0.08%. His holdings were 9,100 shares as of 06/30/2013.
  
  New Purchase: KKR & Co LP (KKR)
  
  Tom Gayner initiated holdings in KKR & Co LP. His purchase prices were between $17.8 and $21.15, with an estimated average price of $19.85. The impact to his portfolio due to this purchase was 0.08%. His holdings were 115,000 shares as of 06/30/2013.
  
  New Purchase: Eni SpA (E)
  
  Tom Gayner initiated holdings in Eni SpA. His purchase prices were between $40.39 and $48.96, with an estimated average price of $45.85. The impact to his portfolio due to this purchase was 0.04%. His ! holdings were 30,000 shares as of 06/30/2013.
  
  New Purchase: Ross Stores, Inc. (ROST)
  
  Tom Gayner initiated holdings in Ross Stores, Inc.. His purchase prices were between $59.26 and $66.5, with an estimated average price of $64.05. The impact to his portfolio due to this purchase was 0.04%. His holdings were 18,000 shares as of 06/30/2013.
  
  New Purchase: Carlyle Group LP (CG)
  
  Tom Gayner initiated holdings in Carlyle Group LP. His purchase prices were between $24.19 and $32.87, with an estimated average price of $29.56. The impact to his portfolio due to this purchase was 0.02%. His holdings were 20,000 shares as of 06/30/2013.
  
  Sold Out: EOG Resources (EOG)
  
  Tom Gayner sold out his holdings in EOG Resources. His sale prices were between $113.44 and $137.9, with an estimated average price of $128.22.
  
  Sold Out: State Street Corp (STT)
  
  Tom Gayner sold out his holdings in State Street Corp. His sale prices were between $56.51 and $67.44, with an estimated average price of $62.2.
  
  Sold Out: Bunge Ltd (BG)
  
  Tom Gayner sold out his holdings in Bunge Ltd. His sale prices were between $66.4 and $73.51, with an estimated average price of $70.39.
  
  Added: UnitedHealth Group Inc (UNH)
  
  Tom Gayner added to his holdings in UnitedHealth Group Inc by 45.25%. His purchase prices were between $58.54 and $66.09, with an estimated average price of $62.22. The impact to his portfolio due to this purchase was 0.4%. His holdings were 569,800 shares as of 06/30/2013.
  
  Added: Liberty Media Corporation (LMCA)
  
  Tom Gayner added to his holdings in Liberty Media Corporation by 102.38%. His purchase prices were between $108.75 and $130.01, with an estimated average price of $119.32. The impact to his portfolio due to this purchase was 0.2%. His holdings were 85,000 shares as of 06/30/2013.
  
  Added: National Oilwell Varco, Inc. (NOV)
  
  Tom Gayner added to his holdings in National Oilwell Varco, Inc. by 40.44%. His purchase prices were bet! ween $64.! 14 and $71.57, with an estimated average price of $68.35. The impact to his portfolio due to this purchase was 0.14%. His holdings were 191,000 shares as of 06/30/2013.
  
  Added: Google, Inc. (GOOG)
  
  Tom Gayner added to his holdings in Google, Inc. by 86%. His purchase prices were between $765.914 and $915.89, with an estimated average price of $849.25. The impact to his portfolio due to this purchase was 0.13%. His ho
• [By Hawkinvest]

  Chevron Corporation (CVX) is a leading integrated energy company with exposure to oil, natural gas, refining, etc. This could be one of the most undervalued stocks in the market. Chevron pays a dividend that beats many other stock and bond yields, plus it has a below market price to earnings ratio of about 8 times earnings. The average stock in the S&P 500 Index currently trades for over 12 times earnings. If oil prices continue to rise, the already healthy profit estimates for Chevron might be too low. With oil prices showing strength this early in the season, Chevron could be poised to beat earnings in the coming months. However, the stock is trading at the upper end of the recent trading range. Recently, it has been possible to buy this stock at about $102 per share, so waiting for dips could pay off.

  Here are some key points for CVX:

  Current share price: $104.25

  The 52 week range is $85.63 to $110.01

  Earnings estimates for 2012: $12.66 per share

  Earnings estimates for 2013: $13.20 per share

  Annual dividend: $3.42 per share which yields 3.1%

Mylan Notches Patent Court Fight Win - Analyst Blog

Mylan Inc. (MYL) recently announced that the US district court for the southern district of N.Y. has issued a favorable final judgment in a patent infringement case with Sunovion Pharmaceuticals.

The final verdict was in line with the decision issued by the Court of Appeals for the Federal Circuit. According to the order issued by the court, Mylan's five patents related to its chronic obstructive pulmonary disease drug Perforomist stand as valid and enforceable and are infringed by Sunovion's Brovana. Brovana is approved for controlling the symptoms of COPD, including chronic bronchitis and emphysema. Both Brovana and Perforomist are long-acting beta-2 agonists.

In 2012, Mylan settled its patent dispute with Sunovion Pharma pertaining to Brovana. Sunovion recognized that Brovana infringed two of Mylan's patents, which are valid till Jun 22, 2021.

Following the currently issued favorable ruling, Mylan's seven patents pertaining to Perforomist stand as valid and enforceable and are infringed by Sunovion's Brovana.

We note that the Perforomist inhalation solution is marketed by the Mylan Specialty segment. The drug performed well in the first quarter of 2013. The most significant product in this segment is EpiPen auto-injector, which is used to treat severe allergic reactions.

The bulk of the revenues come from the company's generic division. The generics business has been consistently performing well. Mylan's generic unit has seen quite a few launches over the past few months. One of the important recent launches includes the company's generic version of Pfizer Inc.'s (PFE) erectile dysfunction drug Viagra. Dr. Reddy's Laboratories Ltd. (RDY) too has been making multiple generic launches over the past few months.

Mylan carries a Zacks Rank #2 (Buy). Simcere Pharmaceutical Group (SCR) appears to be equally attractive.

Get Ready For Brazil’s Consumer Explosion

Times are pretty tough across most of the emerging world, but seem especially difficult in BRIC superstar Brazil. Falling commodity prices and slowing growth coupled with political and social unrest have sent shares of Brazilian firms downwards since the beginning of the year. Overall, broad measures- like the benchmark iShares MSCI Brazil ETF (NYSE:EWZ) –have lost about 25% of their value since the beginning of the year.

As investors have focused on the short-term headwinds facing the emerging market leader, longer term values are beginning to show themselves. One of which could be in Brazil's massive and growing consumer market. For investors, betting on Brazil's buying could be one of the better bets over the longer term and now could be a great time to do just that.

SEE: Investing In Brazil 101

Boom In Consumerism
The change in consumer behavior that is currently underway in Brazil can be compared to America's post-WWII period of the 1950s and 1960s. During this time, everything from durables, household products and personal care goods saw an increase in sales.

For Brazilian citizens, that trend is shaping up to be just as big.

While the previous decade helped bring many families out of poverty, the current decade is being marked by a growth in affluence. According to research conducted by Boston Consulting Group (BCG), some 5.3 million households will rise from the restricted to the emergent middle-class segment in Brazil over the next ten years. At the same time, an additional 1.6 million and 1.9 million families will enjoy established middle-class and affluent lifestyles, respectively. Overall, families in these middle class categories will make up 37% of Brazilian households by 2020. This compares to just 29% back in 2010 and 24% in 2000.

These newly emerged middle class residents will result in annual spending power of about 3.2 trillion Brazilian reals- $1.6 trillion by 2020. That massive spending power will mean that citizens will demand have more access to appliances, electrical goods and travel opportunities. Additionally, growth in personal/financial services, and private education will explode as more families move up to the affluent -more than $45,000 per year in earnings- category.

Already, this is holding true as Brazilian sales are growing four times faster than the U.S. Retail sales in the emerging market nation are increasing at 7 to 8% a year. Meanwhile, with high debt loads and stubbornly high unemployment, the U.S. is only seeing retail sales growth of about 2%.

Making A Brazilian Consumer Play
Given the long-term consumer story and the recent downturn in Brazilian stocks, investors may want to give those firms catering to its new middle class a buy. The most direct play is through the Global X Brazil Consumer ETF (NASDAQ:BRAQ). The fund tracks 35 different consumer plays including food manufacturer BRF S.A. (NASDAQ:BRFS) and sugarcane firm Cosan (NYSE:CZZ). However, while the ETF does hone in on the theme, trading volumes and asset under management continue to be anemic- despite launching in 2010. A better play could be the broad iShares S&P Global Consumer Discretionary ETF (NYSE:RXI). That fund features several firms- like Estée Lauder (NYSE:EL) –which are deriving a high percentage of their earnings from the nation.

Or Investors could go the individual Brazilian stock route.

A prime candidate could be fast food kingpin Arcos Dorados (NYSE:ARCO). The company offers a play on the nation's consumers appetite for more "American" style foods as it is the largest South American McDonald's (NYSE:MCD) franchisee with over 2000 restaurants in 20 countries. However, the bulk of them in Brazil at 735- with the nation contributing almost 48% of all of ARCO's sales. The stock continues to trade below its IPO price, despite paying a good dividend and offering much growth potential. Likewise, Companhia de Bebidas das Américas (NYSE:ABV) or AmBev is also a great play on growing beer consumption within the nation.

Operating more than 1600 hypermarkets, supermarkets, department stores across Brazil, Companhia Brasileiras de Distribuicao (NYSE:CBD) represents a direct play on rising spending. That rising spending is translating to rising earnings as the firm predicts that sales will grow by more than 10% throughout 2013.

The Bottom Line
With Brazilian stocks currently down in the dumps, long-term investors currently have the opportunity to load up on one of the biggest trends affecting the nation- its rising consumer wealth. For portfolios, the previous picks- along with bank Itaú Unibanco (NYSE:ITUB) –make ideal selections to play the $1.6 trillion potential.

Hot Undervalued Stocks To Own For 2014

LONDON -- Ace City investor Neil Woodford, who manages more than 拢20 billion of investors' money, has thrashed the market over the last five, 10 and 15 years. And he has done it again this year.

The master investor's Edinburgh Investment Trust has just announced its annual results. The fund delivered a 20.1% return for shareholders over its latest financial year, compared with a 16.8% gain by the FTSE All-Share index.

Woodford told us that while the market as a whole is no longer as cheap as it was, "some high quality, dependable growth companies remain significantly undervalued." He added that he remains convinced by "their potential to deliver attractive positive returns over the medium/long term, regardless of the economic headwinds we expect to prevail."

Blue chip Imperial Tobacco (LSE: IMT  ) (NASDAQOTH: ITYBY  ) and midcap defense firm Chemring (LSE: CHG  ) are two companies in which Woodford sees significant value. I'll tell you what he has to say about them in a minute.

Hot Undervalued Stocks To Own For 2014: Och-Ziff Capital Management Group LLC(OZM)

Och-Ziff Capital Management Group LLC is a publicly owned investment manager. The firm provides investment advisory services for its clients. It invests in equity markets across the world. The firm makes its investments in alternative markets across the world. It employs quantitative and qualitative analysis to make its investments. The firm also manages a buyout fund, Och-Ziff Energy Fund. Och-Ziff Capital Management Group LLC was founded in 1994 and is based New York, New York with additional offices in London, United Kingdom; Hong Kong; Tokyo, Japan; Bangalore, India; and Beijing, China.

Hot Undervalued Stocks To Own For 2014: Sonoco Products Company(SON)

Sonoco Products Company provides industrial and consumer packaging products, and packaging services worldwide. It offers composite paperboard cans; paperboard packages; fiber cartridges; layered bottles and jars; laminated tubs, cups, and spools; consumer and institutional trays; and aluminum, steel, and peelable membrane easy-open closures, as well as flexible packaging, product design, tool design, fabrication, and manufacturing services. The company also produces paperboard tubes, cores, roll packaging, molded plugs, pallets, pallet components, concrete forms, rotary die boards, recycled paperboard, chipboard, tube board, lightweight corestock, boxboard, linerboard, corrugating medium, specialty grades, and recovered paper products; and steel, nailed wooden, plywood, recycled, and polyfiber reels, as well as recycles old corrugated container, paper, plastic, metal, and glass materials. In addition, it manufactures custom-printed glass covers and coasters; offers custom packing, fulfillment, and primary package filling services, as well as operates scalable service centers; contract packaging, co-packing, and fulfillment services; and temporary, semipermanent, and permanent point-of-purchase displays. Further, the company provides fabricated foam, corrugated paperboard, molded EPS and EPP, antistatic fabricated foam solutions, nesting and stacking trays, molded foam dunnage, totes and tote inserts, energy-absorbing and flotation components, and insulation components, as well as contract package testing service. Additionally, it offers insulated shippers, durable transport chests, gel packs, phase change materials, lab/pharma/diagnostic specimen transport, refrigerant materials, edge and corner protection, and temperature assurance solutions; high-visibility packaging and printed products; and blister packaging machines. The company, formerly known as Southern Novelty Company, was founded in 1899 and is based in Hartsville, South Carolina.

Hot Bank Companies For 2014: Williams-Sonoma Inc.(WSM)

Williams-Sonoma, Inc. operates as a specialty retailer of home products. It offers culinary and serving equipment, including cookware, cookbooks, cutlery, informal dinnerware, glassware, table linens, specialty foods, and cooking ingredients; and bridal and gift items under the Williams-Sonoma brand name. The company also provides home furnishing categories, including furniture, textiles, decorative accessories, lighting, and tabletop items under the West Elm brand name; bed and bath products under the Pottery Barn brand name; and children?s furnishings and accessories under the Pottery Barn Kids brand name. Williams-Sonoma, Inc. sells its home products through four retail store concepts, which include Williams-Sonoma, Pottery Barn, Pottery Barn Kids, and West Elm; six direct-mail catalogs that comprise Williams-Sonoma, Pottery Barn, Pottery Barn Kids, Pottery Barn Bed and Bath, PBteen, and West Elm; and six e-commerce Websites, which consist of williams-sonoma.com, potte rybarn.com, potterybarnkids.com, pbteen.com, westelm.com, and wshome.com. As of January 30, 2011, it operated 592 stores, including 260 Williams-Sonoma, 193 Pottery Barn, 85 Pottery Barn Kids, 36 West Elm, and 18 outlet stores located in 44 states of the United States; Washington, D.C.; Canada; and Puerto Rico. The company was founded in 1956 and is headquartered in San Francisco, California.

Conglomerates: Cash Cows Or Corporate Chaos?

Conglomerates are companies that either partially or fully own a number of other companies. Not long ago, sprawling conglomerates were a prominent feature of the corporate landscape. Vast empires, such as General Electric (NYSE:GE) and Berkshire Hathaway (NYSE:BRK.A), were built up over many years with interests ranging from jet engine technology to jewelry. Corporate hodgepodges like these pride themselves on their ability to avoid bumpy markets. In some cases, they have produced impressive long-term shareholder returns - but this doesn't mean that corporate conglomerates are always a good thing for investors. If you're interested in investing in these behemoths, there are a few things you should know. Here we explain what conglomerates are and give you an overview of the pros and cons of investing in them.

The Case for Conglomerates
The case for conglomerates can be summed up in one word: diversification. According to financial theory, because the business cycle affects industries in different ways, diversification results in reduced investment risk. A downturn suffered by one subsidiary, for instance, can be counterbalanced by stability, or even expansion, in another venture. In other words, if Berkshire Hathaway's brick-making division has a bad year, the loss might be offset by a good year in its insurance business.

At the same time, a successful conglomerate can show consistent earnings growth by acquiring companies whose shares are more lowly rated than its own. In fact, GE and Berkshire Hathaway have both promised - and delivered - double-digit earnings growth by applying this investment growth strategy.

The Case Against Conglomerates
However, the prominent success of conglomerates such as GE and Berkshire Hathaway is hardly proof that conglomeration is always a good idea. There are plenty of reasons to think twice about investing in these stocks, particularly in 2009, when both GE and Berkshire suffered as a result of the economic downturn, proving that size does not make a company infallible.

Investment guru Peter Lynch uses the phrase "diworsification" to describe companies that diversify into areas beyond their core competencies. A conglomerate can often be an inefficient, jumbled affair. No matter how good the management team, its energies and resources will be split over numerous businesses, which may or may not be synergistic.

For investors, conglomerates can be awfully hard to understand, and it can be a challenge to pigeonhole these companies into one category or investment theme. This means that even managers often have a hard time explaining their investment philosophy to shareholders. Furthermore, a conglomerate's accounting can leave a lot to be desired and can obscure the performance of the conglomerate's separate divisions. Investors' inability to understand a conglomerate's philosophy, direction, goals and performance can eventually lead to share underperformance.

While the counter-cyclical argument holds, there is also the risk that management will keep hold of businesses with poor performance, hoping to ride the cycle. Ultimately, lower-valued businesses prevent the value of higher-valued businesses from being fully realized in the share price.

What's more, conglomerates do not always offer investors an advantage in diversification. If investors want to diversity risk, they can do so by themselves, by investing in a few focused companies rather than putting all of their money into a single conglomerate. Investors can do this far more cheaply and efficiently than even the most acquisitive conglomerate.

The Conglomerate Discount
The case against conglomerates is a strong one. Consequently, the market usually applies a haircut to the piecewise, or sum-of-parts, value - that is, it frequently values conglomerates at a discount to more focused companies. This is known as the conglomerate discount. According to a 2001 article in CFO Magazine, academic studies have suggested in the past that this discount could be as much as 10-12%, but more recent academic inquiries have concluded that the discount is closer to 5%. Of course, some conglomerates command a premium but, in general, the market ascribes a discount.

The conglomerate discount gives investors a good idea of how the market values the conglomerate as compared to the sum value of its various parts. A deep discount signals that shareholders would benefit if the company were dismantled and its divisions left to run as separate stocks.

Let's calculate the conglomerate discount using a simple example. We'll use a fictional conglomerate called DiversiCo, which consists of two unrelated businesses: a beverage division and a biotechnology division.

DiversiCo has a $2 billion stock market valuation and $0.75 billion in total debt. Its beverage division has balance sheet assets of $1 billion, while its biotechnology division has $0.765 billion worth of assets. Focused companies in the beverage industry have median market-to-book values of 2.5, while pure play biotech firms have market-to-book values of 2. DiversiCo's divisions are fairly typical companies in their industries. From this information, we can calculate the conglomerate discount:

Example - Calculating the Conglomerate Discount Total Market Value DiversiCo: = Equity + Debt = $2 billion + $0.75 billion = $2.75 billion Estimated Value Sum of the Parts: = Value of Biotech Division + Value of Beverage Division = ($0.75 billion X 2) + ($1 billion X 2.5) = $1.5 billion + $2.5 billion = $4.0 billion So, the conglomerate discount amounts to: = ($4.0 billion - $2.75 billion) / $4.0 billion = 31.25%

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DiversiCo's 31.25% conglomerate discount seems unusually deep. Its share price does not reflect the true value of its separate divisions. It becomes clear that this multibusiness company could be worth significantly more if it were broken up into individual businesses. Consequently, investors may push for divesting or spinning off its beverage and biotech divisions to create more value. If that were to happen, Diversico might be worth closer examination as a buying opportunity.

What to Look for
The big question is whether investing in conglomerates makes sense. The conglomerate discount suggests it does not. But there may be a silver lining. If you invest in conglomerates that break up into individual pieces through divestitures and spinoffs, you could capture an increase in value as the conglomerate discount disappears. As a general rule, you stand to get greater returns when conglomerates break up than when they are built.

That said, some conglomerates do command a valuation premium - or at least a slim conglomerate discount. These are extremely well-run companies. They are managed aggressively, with clear targets set for divisions. Underperforming companies are quickly sold, or divested. More importantly, successful conglomerates have financial rather than strategic or operating objectives, adopting strict approaches to portfolio management.

If you choose to invest in conglomerates, look for ones with financial discipline, rigorous analysis and valuation, a refusal to overpay for acquisitions and a willingness to sell off existing businesses. As with any investment decision, think before you buy and don't assume that big companies always come with big returns.

Have You Researched Your Car More Than Your Portfolio?

A majority of affluent Americans are highly engaged in most aspects of their lives, but a significant number are not actively engaged in their portfolios, according to a new study released Wednesday by Charles Schwab.

Koski Research in mid-April surveyed 1,000 Americans on behalf of Schwab. Respondents ranged in age from 25 to 75, had $250,000 or more in investable assets and were mainly clients of large, national brokerage firms.

They were also highly engaged in their lives. Respondents said it was important for parents to be active in their children’s education (88%), thought hard work made the country great (74%) and conducted their own research before making major purchases (86%) or on health concerns (67%). Only 4% would let a professional make decisions without their involvement.

The study found that 61% of respondents were actively involved in their investment portfolios, while 39% said they were not actively engaged.

All survey respondents exhibited similarly tenacious attitudes and behaviors in their lives, but numerous differences emerged between those who were engaged in investing and those who were not.

Of the more engaged, 72% reviewed their portfolio every month, but only 37% of the less engaged did. Sixty-one percent of the former took time to understand available investment products, while 23% did not.

And 57% of the more engaged changed their portfolio in response to life changes; just 31% of the less engaged did so.

Focusing specifically on the group less engaged in investing, the study found attitudes and behaviors that were inconsistent with this group’s general level of engagement in life. Seventy-six percent said they took charge in their lives and wouldn’t have it any other way, yet just 33% thought  it was very important to be engaged with investing, and 94% called themselves planners, but only 38% actually had a financial plan.

Interestingly, the Schwab study found that in contrast to their behavior in other aspects of their lives, both groups were less engaged in certain areas of investing, including how they interacted with professionals (among those with a primary investment professional).

These discrepancies are more pronounced among the less engaged group:

“In our opinion, the financial services industry, especially traditional Wall Street brokerage firms, has made investing too complex, opaque, and inflexible, all of which we believe create roadblocks for engagement,” John Clendening, executive vice president and co-head of Schwab Investor Services, said in a statement.

“We’ve seen an influx of new clients who are increasingly engaged and demanding clarity, choice, and control across all areas of their lives. We’re squarely focused on serving these needs, and we encourage others firms to do a better job of delivering information, products and services on these terms to build investing engagement.”

AdvisorOne Is Now ThinkAdvisor

Nearly three years ago we successfully launched AdvisorOne. Today we’re relaunching and renaming the premier site for advisor news and analysis to ThinkAdvisor. The change reflects our sharpened focus on delivering to advisors the thought leadership they want and need at every stage of their career development.

ThinkAdvisor is a major expansion of AdvisorOne, the leading news and information website in the investment advisory industry. ThinkAdvisor goes beyond news and information to provide advisors with access to unique resources that support their professional development.

ThinkAdvisor provides users with AdvisorOne’s trusted news and industry information, vendor resources and best practices as well as continuing education and professional reference publications. ThinkAdvisor features a new, simplified layout, optimized for readability and multi-device support, including smartphones and tablets.

At the same time, ThinkAdvisor engages users with new interactive resources, including live events, virtual tradeshows, and webcasts, as well as features like The Academy, an interactive knowledge center used by advisors to drive their businesses and grow in their careers. As part of the change, we'll be encouraging advisor users to become members of the site; members will be the first to preview new community features, and have the ability to manage how they receive information based on their personal preferences.

Why make the change? AdvisorOne’s original charter was to present, aggregate and curate news and analysis from across the Web. While we succeeded, we realized from monitoring user behavior and through a series of reader forums that in addition to news, analysis and data, advisors wanted and needed assistance at every stage of their career development. They wanted and needed to easily delve more deeply into  specific topics of interest. They wanted and needed to make sure to read everything that Moshe Milevsky or Mark Tibergien or Angie Herbers or Michael Kitces had to say in their columns or their blogs. They wanted and needed a community of peers and industry experts where they could express themselves and continually learn from each other.

That’s what ThinkAdvisor is and will be. We’ve changed the name but we will retain our commitment to delivering the news and information advisors want and need, delivered by the most knowledgeable, experienced editorial staff in the business.

Fiserv Signs New DNA Contract - Analyst Blog

Fiserv Inc (FISV) recently signed a contract with Community Bank - Wheaton / Glen Ellyn. The community bank, a subsidiary of Community Financial Shares, Inc. (CFIS), chose Fiserv's DNA account processing platform to upgrade its banking infrastructure.

The community bank serves Wheaton, Glen Ellyn and surrounding communities in DuPage County, Ill. and has more than 29K customers. It manages assets worth $355.0 million. The bank selected DNA due to its closely integrated complementary solutions, customer friendly approach and strong business intelligence tools.

The DNA account processing solution has gained significant momentum in recent times. Recently, Fiserv won contracts from three leading credit unions namely Greater Nevada, MIDFLORIDA and Navigant, which on a combined basis have more than 302K members.

DNA banking platform was the primary reason behind Fiserv's acquisition of Open Solutions early this year. The acquisition of the DNA platform is expected to expand Fiserv's customer base going forward. Most of the DNA contracts are long term in nature, which is significant. These will add a recurring revenue source to Fiserv's top line.

Fiserv expects to earn revenue synergies of more than $75.0 million and cost synergies of $50.0 million over the next several years from the acquisition of Open Solutions. The acquisition is expected to be significantly accretive to earnings per share going forward.

Accretive acquisitions have been a key growth factor for Fiserv over the years. In the first quarter of 2013, processing and services revenues increased 7.6% year over year to $966.0 million, of which $65.0 million was derived from acquisitions.

Acquisitions have helped Fiserv expand its foothold in the financial and payment solutions business through its diversified product portfolio and continued technology upgrades. The company's advanced product ranges are likely to further enhance its revenue streams.

This is evident from the fact that! the company signed 90 new clients, which helped it to expand its total number of clients for the Mobiliti solution to 1,500 at the end of the first quarter.

Client demand for the Popmoney solution continues to remain strong as Fiserv signed 89 new institutions in the quarter, bringing the total number of customers to 1,900. During the quarter, Fiserv signed 78 electronic bill payment clients and 36 debit processing clients.

We believe that various contract wins and accretive acquisitions will help Fiserv to fight stiff competition from Fidelity (FIS) and Mastercard (MA) in the near term.

However, a volatile macroeconomic environment, banking and financial service consolidation, poor cash flow, tough competition and increasing industry regulations are the primary near-term concerns.

Currently, Fiserv has a Zacks Rank #3 (Hold).

Top 5 Medical Companies For 2014

With the spinoff complete from Covidien (NYSE: COV  ) effective June 28, the medical device manufacturer's�former specialty pharmaceutical arm,�Mallinckrodt, begins its new life today as an independently traded public company. It is listed on the NYSE under the symbol MNK.

Mallinckrodt President and CEO�Mark Trudeau said:

Today marks a significant new chapter in Mallinckrodt's proud history.�We are well positioned to leverage the skills and capabilities that have been developed over 145 years of�pharmaceuticals�industry experience. There are many benefits to our being independent that will accrue to Mallinckrodt's shareholders, customers, and employees going forward. We are excited about the growth opportunities that lie ahead.

The pharmaceutical business of�Mallinckrodt and the medical device�business of Covidien had divergent long-term objectives, and the latter announced in late 2011 its intention to spin off the specialty pharma.�In the distribution, Mallinckrodt issued one share for every eight shares of Covidien stock held as of the close of business on June 19, the date of record for the distribution.

Top 5 Medical Companies For 2014: Cell Therapeutics Inc (CTIC)

Cell Therapeutics, Inc. (CTI), incorporated in 1991, develops, acquires and commercializes treatments for cancer. The Company�� research, development, acquisition and in-licensing activities concentrate on identifying and developing new ways to treat cancer. As of December 31, 2011, CTI focused its efforts on Pixuvri (pixantrone dimaleate) (Pixuvri), OPAXIO (paclitaxel poliglumex) (OPAXIO), tosedostat, brostallicin and bisplatinates. As of December 31, 2011, it developed Pixuvri, an anthracycline derivative for the treatment of hematologic malignancies and solid tumors. Another late-stage drug candidate of the Company, OPAXIO, is being studied as a potential maintenance therapy for women with advanced stage ovarian cancer, who achieve a complete remission following first-line therapy with paclitaxel and carboplatin. As of December 31, 2011, it also developed tosedostat in collaboration with Chroma Therapeutics, Ltd. (Chroma). On May 31, 2012, CTI completed its acquisition gaining worldwide rights to S*BIO Pte Ltd.'s (S*BIO) pacritinib.

Pixuvri

As of December 31, 2011, the Company developed Pixuvri, an aza-anthracenedione derivative, for the treatment of non-Hodgkin�� lymphoma (NHL), and various other hematologic malignancies, and solid tumors. Pixuvri was studied in the Company�� EXTEND, or PIX301, clinical trial, which was a phase III single-agent trial of Pixuvri for patients with relapsed, refractory aggressive NHL who received two or more prior therapies and who were sensitive to treatment with anthracyclines. On September 28, 2011, CTI announced that a second independent radiology assessment of response and progression endpoint data from its PIX301 clinical trial of Pixuvri was achieved with statistical significance. The results of the EXTEND trial met its primary endpoint and showed that patients randomized to treatment with Pixuvri achieved a significantly higher rate of confirmed and unconfirmed complete response compared to patients treated with standard chem! otherapy had a significantly increased overall response rate and experienced a statistically significant improvement in median progression free survival. Pixuvri had predictable and manageable toxicities when administered at the proposed dose and schedule in the EXTEND clinical trial in heavily pre-treated patients. In March 2011, the Company initiated the PIX-R trial to study Pixuvri in combination with rituximab in patients with relapsed/refractory diffuse large B-cell lymphoma (DLBCL). Pixuvri has also been studied in patients with HER2-negative metastatic breast cancer who have tumor progression after at least two, but not more than three, prior chemotherapy regimens. In the second quarter of 2010, the NCCTG opened this phase II study for enrollment. The study is closed to accrual and results are expected to be reported by the NCCTG later in 2012.

OPAXIO

OPAXIO is the Company�� biologically-enhanced chemotherapeutic agent that links paclitaxel to a biodegradable polyglutamate polymer, resulting in a new chemical entity. As of December 31, 2011, the Company focused its development of OPAXIO on ovarian, brain, esophageal, head and neck cancer. OPAXIO was designed to improve the delivery of paclitaxel to tumor tissue while protecting normal tissue from toxic side effects. In November 2010, results were presented by the Brown University Oncology Group from a phase II trial of OPAXIO combined with temozolomide (TMZ), and radiotherapy in patients with newly-diagnosed, high-grade gliomas, a type of brain cancer. The trial demonstrated a high rate of complete and partial responses and a high rate of six month progression free survival (PFS). Based on these results, the Brown University Oncology Group has initiated a randomized, multicenter, phase II study of OPAXIO and standard radiotherapy versus TMZ and radiotherapy for newly diagnosed patients with glioblastoma with an active gene termed MGMT that reduces responsiveness to TMZ. A phase I/II study of OPAXIO combined with radi! otherapy ! and cisplatin was initiated by SUNY Upstate Medical University, in patients with locally advanced head and neck cancer.

Tosedostat

In March 2011, the Company entered into a co-development and license agreement with Chroma Therapeutics, Ltd. (Chroma), providing the Company with marketing and co-development rights to Chroma�� drug candidate, tosedostat, in North, Central and South America. Tosedostat is an oral, aminopeptidase inhibitor that has demonstrated anti-tumor responses in blood related cancers and solid tumors in phase I-II clinical trials. Interim results from the phase II OPAL study of tosedostat in elderly patients with relapsed or refractory acute myeloid leukemia (AML) showed that once-daily, oral doses of tosedostat had predictable and manageable toxicities and results demonstrated response rates, including a high-response rate among patients who received prior hypomethylating agents, which are used to treat myelodysplastic syndrome (MDS), a precursor of AML.

Brostallicin

As of December 31, 2011, the Company developed brostallicin through its wholly owned subsidiary, Systems Medicine LLC, which holds rights to use, develop, import and export brostallicin. Brostallicin is a synthetic deoxyribonucleic acid (DNA) minor groove binding agent that has demonstrated anti-tumor activity and a favorable safety profile in clinical trials, in which more than 230 patients have been treated as of December 31, 2011. The Company uses a genomic-based platform to guide the development of brostallicin. A phase II study of brostallicin in relapsed, refractory soft tissue sarcoma met its predefined activity and safety hurdles and resulted in a first-line phase II clinical trial study that was conducted by the European Organization for Research and Treatment of Cancer (EORTC).

The Company competes with Bristol-Myers Squibb Company, Sanofi-Aventis, Pfizer, Roche Group, Genentech, Inc., Astellas Pharma, Eli Lilly and Company, Celgene, Telik, I! nc., TEVA! Pharmaceuticals Industries Ltd. and PharmaMar.

Top 5 Medical Companies For 2014: Uroplasty Inc (UPI)

Uroplasty, Inc., incorporated in January 1992, is a medical device company that develops, manufactures and markets products for the treatment of voiding dysfunctions. The Company�� primary focus is on two products: the Urgent PC Neuromodulation system and Macroplastique Implants. The Urgent PC system is a United States Food and Drug Administration (FDA)-approved minimally invasive, office-based neuromodulation therapy for the treatment of overactive bladder (OAB) and associated symptoms of urinary urgency, urinary frequency, and urge incontinence; and Macroplastique Implants a urethral bulking agent for the treatment of adult female stress urinary incontinence primarily due to intrinsic sphincter deficiency (ISD). Outside of the United States, the Company�� Urgent PC is also approved for treatment of fecal incontinence, and Macroplastique is also approved for treatment of male stress incontinence and vesicoureteral reflux.

Urgent PC Neuromodulation System

Using a small-gauge needle electrode inserted above the ankle, the Urgent PC System delivers electrical impulses to the tibial nerve that travel to the sacral nerve plexus, a control center for pelvic floor and bladder function. Components of the Urgent PC system include a hair-width needle electrode, a lead set, and an external, handheld, battery-powered stimulator. For each 30-minute, office-based therapy session, the physician or other qualified healthcare provider inserts the needle electrode in the patient�� lower leg and connects the electrode to the stimulator. Typically, a patient undergoes 12 consecutive weekly treatment sessions, with follow-up maintenance treatments as required to sustain the therapeutic effect. The Company has received regulatory clearances for sale of the Urgent PC system in the United States, Canada and Europe. It also has launched its second generation Urgent PC system.

Macroplastique

Macroplastique is designed to restore the patient�� urinary contine! nce immediately following treatment. Macroplastique is a soft-textured, permanent implant injected, under endoscopic visualization, around the urethra distal to the bladder neck. It is a composition of heat vulcanized, solid, soft, irregularly shaped polydimethylsiloxane (solid silicone elastomer) implants suspended in a biocompatible excretable carrier gel. Macroplastique does not degrade, is not absorbed into surrounding tissues and does not migrate from the implant site. The Company has sold Macroplastique for several urological indications in over 40 countries outside the United States.

Other Uroplasty Products

The Company markets outside of the United States minimally invasive products to address fecal incontinence. Its PTQ Implants offer minimally invasive, soft-textured permanent implant for treatment of fecal incontinence. The PTQ Implants are implanted circumferentially into the submucosa of the anal canal, creating a bulking and supportive effect similar to that of Macroplastique injection for the treatment of stress urinary incontinence. The PTQ is Conformite Europeenne (CE) marked and is sold outside the United States in various international markets. The Urgent PC is also CE marked and sold outside of the United States for the treatment of fecal incontinence. In addition to urological applications, the Company markets its tissue bulking material outside the United States for otolaryngology vocal cord rehabilitation applications under the trade name VOX Implants. In the Netherlands and the United Kingdom only, the Company distributes certain wound care products in accordance with a distributor agreement.

The Company competes with Pfizer Inc., Johnson and Johnson, Novartis, Allergan, GlaxoSmithKline, Carbon Medical Technologies, BioForm, Inc., Q-Med AB and Contura.

Hot Safest Companies To Own For 2014: Fuse Science Inc (DROP)

Fuse Science, Inc. ( Fuse Science), incorporated on September 21, 1988, is a consumer products holding company. The Company maintains the rights to sublingual and transdermal delivery systems for bioactive agents that can effectively encapsulate and charge many varying molecules in order to produce complete product formulations which can be consumed orally, applied topically or delivered otherwise sublingually or transdermally, thereby bypassing the gastrointestinal tract and entering the blood stream directly. The Fuse Science technology is designed to accelerate conveyance of medicines or nutrients relative to traditional pills and liquids and can enhance how consumers receive these products. In December 2012, the Company launched its initial DROP products, PowerFuse, an energy formulation in a concentrated drop and ElectroFuse, an electrolyte formula in a concentrated drop, online, with the expansion into targeted retail distribution channels.

The Company is developing formulations and devices, which are compatible with alternative delivery systems for energy, medicines, vitamins and minerals, among other bioactives. These alternative systems include, but are not limited to, sublingual, transdermal and buccal drug delivery methods. use Science has developed and continues to advance, in conjunction with its scientific team, sublingual and transdermal delivery systems for bioactives that can effectively encapsulate and charge varying molecules in order to produce product formulations which can be consumed orally, applied topically or otherwise delivered sublingually or transdermally, thereby bypassing the gastrointestinal tract and entering the blood stream directly. The delivery technology is consists of encapsulation vesicles and ion exchange permeation enhancers. This technology utilizes a gradient across the mucosa membrane to help deliver the bioactive more efficiently through the mucosa.

The Company�� products consist of EnerJel, PowerFuse and ElectroFuse. Ene! rJel is a topical product leveraging some of its technology, which is designed to address muscle fatigue and soreness, before, during and after physical activity. The product contains a natural anti-inflammatory and energy source which is directly applied to the problem area. PowerFuse contains natural ingredients, causes no sugar crash with zero calories and less than half the caffeine of an eight ounce cup of premium coffee. It is available in a great tasting Berry Blast Flavor. ElectroFuse contains natural ingredients, causes no sugar crash with zero calories, is easily portable and is available in a great tasting Salty-Sweet flavor.

Top 5 Medical Companies For 2014: Organovo Holdings Inc (ONVO.PK)

Organovo Holdings, Inc. (Organovo), formerly Real Estate Restoration & Rental, Inc., incorporated in 2007, is a development-stage company. The Company has developed and is commercializing a platform technology for the generation of three-dimensional (3D) human tissues that can be employed in drug discovery and development, biological research, and as therapeutic implants for the treatment of damaged or degenerating tissues and organs. On December 28, 2011, Real Estate Restoration and Rental, Inc.�� (RERR) entered into an Agreement and Plan of Merger, pursuant to which RERR merged with its, wholly owned subsidiary, Organovo (Merger Sub). On February 8, 2012, the Company merged with and into Organovo Acquisition Corp. (Acquisition Corp.), a wholly owned subsidiary of Organovo, with the Company surviving the merger as a wholly owned subsidiary of Organovo Holdings (the Merger). As a result of the Merger, Organovo acquired the business of Organovo, Inc.

The C ompany has collaborative research agreements with Pfizer, Inc. (Pfizer) and United Therapeutic Corporation (Unither). As of March 31, 2012, it has five federal grants, including Small Business Innovation Research grants and developed the NovoGen MMX Bioprinter (its first-generation 3D bioprinter). The Company is engaged in the development of specific 3D human tissues to aid Pfizer in discovery of therapies in two areas of interest. In addition, in October 2011, it entered into a research agreement with Unither to establish and conduct a research program to discover treatments for pulmonary hypertension using its NovoGen MMX Bioprinter technology. Additionally, under the research agreement with Unither, the Company granted Unither an option to acquire from the Company a worldwide, royalty-bearing license in certain intellectual property created under the research agreement solely for use in the treatment or prevention of pulmonary hypertension and all other lung diseases.

The Company�� NovoGen MMX Bioprinter is an aut! om! ated device that enables the fabrication of three-dimensional (3D) living tissues comprised of mammalian cells. A custom graphic user interface (GUI) facilitates the 3D design and execution of scripts that direct precision movement of the dispensing heads to deposit cellular building blocks (bio-ink) or supporting hydrogel. The Company is using a third party manufacturer, Invetech Pty., of Melbourne, Australia, to manufacture its NovoGen MMX Bioprinter. Its bioprinting technology and surrounding intellectual property and commercial rights serve as a platform for product generation across multiple markets that employ cell- and tissue-based products and services.

The Company competes with Organogenesis, Advanced BioHealing, Tengion, Genzyme, HumaCyte and Cytograft Tissue Engineering.

Top 5 Medical Companies For 2014: StemCells Inc (STEM)

StemCells, Inc. (StemCells), incorporated in August 1988, is engaged in the research, development, and commercialization of stem cell therapeutics and related tools and technologies for academia and industry. The Company is focused on developing and commercializing stem and progenitor cells as the basis for therapeutics and therapies, and cells and related tools and technologies to enable stem cell-based research and drug discovery and development. The Company�� primary research and development efforts are focused on identifying and developing stem and progenitor cells as potential therapeutic agents. The Company has two therapeutic product development programs, including its CNS Program, which is developing applications for HuCNS-SC cells, its human neural stem cell product candidate, and its Liver Program, which is characterizing the Company�� human liver cells as a therapeutic product.

CNS Program

The Company in its CNS Program, is in clinical development with its HuCNS-SC cells for a range of disorders of the central nervous system. The CNS includes the brain, spinal cord and eye. In February 2012, the Company had completed a Phase I clinical trial in Pelizeaus-Merzbacher Disease (PMD), a fatal myelination disorder in the brain.

The Company�� CNS Program is focused on developing clinical applications, in which transplanting HuCNS-SC cells protect or restore organ function of the patient before such function is irreversibly damaged or lost due to disease progression. The Company�� initial target indications are PMD, and more generally, diseases in which deficient myelination plays a central role, such as cerebral palsy or multiple sclerosis; spinal cord injury, disorders in which retinal degeneration plays a central role, such as age-related macular degeneration or retinitis pigmentosa. The Company�� product candidate, HuCNS-SC cells, is a purified and expanded composition of normal human neural stem cells. Its HuCNS-SC cells can be directly transp! lanted.

Liver Program

Liver stem or progenitor cells offer an alternative treatment for liver diseases. A liver cellular therapy or cell-based therapeutic provide or support liver function in patients with liver disease. The Company held a portfolio of issued and allowed patents in the liver field, which cover the isolation and use of both hLEC cells and the isolated subset, as well as the composition of the cells themselves.

The Company�� range of cell culture products, which are sold under the SC Proven brand, includes iSTEM, GS1-R, GS2-M, RHB-A, RHB-Basal, NDiff N2, and NDiff N2B27. Its iSTEM is a serum-free, feeder-free medium that maintains mouse embryonic stem cells in their pluripotent ground state by using selective small molecule inhibitors to block the pathways, which induce differentiation. RHB-A is a defined, serum-free culture medium for the selective culture of human and mouse neural stem cells and their maintenance and expansion as adherent cell populations. RHB-Basal is a defined, serum-free basal medium. When supplemented with specific growth factors, this media is formulated for the propagation and differentiation of adherent neural stem cells. RHB-Basal can also be tailored to specific-cell type requirements by the addition of customer preferred supplements.

The Company�� NDiff N2 is a defined serum-free scell culture supplement for the derivation, maintenance, expansion and/or differentiation of human and mouse embryonic stem (ES) cells and tissue-derived neural stem cells supplement. Its NDiff N2-AF is a serum-free and animal component-free version of NDiff N2. Its NDiff N2B27 is a defined, serum-free medium for the differentiation of mouse embryonic stem cells to neural cell types. NDiff N27-AF is a serum-free and animal component-free version of NDiff N27. Its GS1-R is a serum-free media formulation shown to enable the derivation and long-term maintenance of true, germline competent rat embryonic stem cells without the add! ition of ! cytokines or growth factors. Its GS2-M is a defined, serum- and feeder-free medium for the derivation and long-term maintenance of true, germline competent mouse iPS cells.

The Company also markets a number of antibody reagents for use in cell detection, isolation and characterization. These reagents are also under the SC Proven brand and it includes STEM24, STEM101, STEM121 and STEM123. Its STEM24 is a human antibody that recognizes human CD24, also known as heat stable antigen (HSA), a glycoprotein expressed on the surface of many human cell types, including immature human hematopoietic cells, peripheral blood lymphocytes, erythrocytes and many human carcinomas. Its CD24 is also a marker of human neural differentiation. Its STEM101 is a human-specific mouse antibody that recognizes the Ku80 protein found in human nuclei. Its STEM121 is a human-specific mouse antibody that recognizes a cytoplasmic protein of human cells. Its STEM123 is a human-specific mouse antibody that recognizes human glial fibrillary acidic protein (GFAP).

The Company�� Other products marketed under SC Proven include total cell genomic DNA (gDNA), RNA and protein lysate reagents purified from homogenous stem cell populations for intra-comparative studies, such as Epigenetic fingerprinting, Southern, Western and Northern blots, PCR, RT-PCR and microarrays. This range of purified stem cell line lysates includes mouse embryonic stem (ES) cells propagated in SC Proven 2i inhibitor-based GS2-M media and mouse ES cell-derived and fetal tissue-derived neural stem (NS) cells propagated in SC Proven RHB-A media.

EMCOR Subsidiary Wins Coast Guard Deal - Analyst Blog

EMCOR Group Inc.'s (EME) subsidiary, EMCOR Government Services, recently procured a contract for an undisclosed amount to operate and maintain the new headquarters of Coast Guard at the Government Service Administration's(GSA) St. Elizabeth's Campusin Washington, D.C.

Coast Guard is a division of the United States Armed Forces and provides maritime, military multi-mission service. Moreover, the GSA is a part of an independent agency of the United States government and helps in managing and supporting the basic functioning of federal agencies.

As per the agreement, EMCOR Government Services is expected to manage the operation and maintenance of 23 facilities at the new Coast Guard Headquarters. EMCOR's subsidiary will also be working on preventive maintenance and reactive service orders at the facilities, which occupy a vast area of approximately 2.6 million square feet.

GSA-approved and security cleared, EMCOR Government Services provides solution for critical needs of federal, state, local and other government organizations. The company has two operating divisions – Integrated Facilities Management & Maintenance Services.

EMCOR Government Services believes that it has the relevant expertise to comprehensively operate and maintain services for the Coast Guard and the recent contract win will stand in good stead to strengthen its long-standing business ties with it.

EMCOR is a leader in mechanical and electrical construction, energy infrastructure, and facilities services.

EMCOR currently carries a Zacks Rank #2 (Buy). Some other stocks within the industry worth mentioning include Chicago Bridge & Iron Company N.V. (CBI), Dycom Industries Inc. (DY) and Comfort Systems USA Inc. (FIX), each holding a Zacks Rank #1 (Strong Buy).

Things you should know before investing

India's GDP de-grew at 5.5% in April to June'12 quarter compared to 8% during the same period last year. The GDP growth was 5.3% in last quarter of Jan to March'2012. These figures are really alarming. The market has reacted badly to these GDP numbers and experts predict that they are likely to fall further. There is a deadlock in Parliament over CAG report on coal allocations, lack of political will of the government, GAAR issue, crude oil hovering above 95$ a barrel, rupee constantly above 55 against $, higher inflation tying the hand of the RBI in reducing the interest rates, worsening balance of payment and fiscal deficit as these are the major concerns for the Indian economy.

Further European crisis and Iran Israel tussle may add fuel to uncertainty. Things are going bad to worse and more so there is no hope of any early revival in the economy. Experts are also apprehensive about India's sovereign downgrade. Most of the equity investors are in a confused state and unable to take any investment decision. Whether this standstill will continue till next general election or we will have early general election? There are no specific answers to any of these questions.

Than what should lay investors do in the current market situation? Before coming to solution one must look back and check what happened in the past. We have seen nine governments in last twenty years post liberalization, three major stock scams, gulf war, Kargil war, communal riots, 26/11, US sub-prime crisis and European debt crisis. Still India is a preferred destination for investment for FIIs. What it tells us that uncertainty comes and goes, if you know what risks you are taking. You should know that your decision  may surprise you in the long run with good returns. Risk comes from not knowing what you are doing. If you take calculated risk it will benefit you in the longer run. Economy also runs in a cycle; like good phase, bad phase is also not permanent.

Investors must also try to understand equity as an asset class before investing. You cannot expect overnight profit from equity as it is always a long term game. It has always outperformed other assets class in the longer run. One should not forget that returns from the equity over one year period is tax-free. If you understand and follow the basic rules of investing in equity then this volatility in stock market will never affect you. Firstly your time horizon for investing in equity should be minimum 5 years and above. You must invest as per your asset allocation ratio and never go overboard and concentrate on single asset class. You must also review your investment portfolio periodically and rebalance the portfolio. Never try to time the market and always stay invested is the success mantra for investing in equity.

Hardly 5 to 7% people of India invest in equity the others feel it's gambling. Even those who invest in equity want their money to be doubled in 3 to 6 months and therefore end up losing their money. It is also important how you invest in equity. There are four different ways by which you can invest in equity. Direct equity investment through stock market, Portfolio management schemes, Unit linked Insurance plans and mutual fund investment. Direct investment through stock markets requires in-depth research and analysis and individually it is not possible for us to do so. Therefore, it is not recommend investing directly in equity. ULIP and PMS are also not advisable for retail investors looking at charges and complexity of the products. SIP in mutual fund schemes is the best solution for investing in equity for the long-term in a volatile market scenario. By investing through SIP you reap the advantage of rupee cost averaging. This lowers the average cost of your holding. Secondly if you invest through SIP, you do not have to worry about daily volatility of the market and thus do not have to time the market. Since SIP can be done with as small an amount as five hundred rupees you can start with a small saving also and get the advantage of power of compounding. It is not advisable to discontinue your SIPs in the current market scenario. Tough time is always the best period to invest in equity. It is rightly said it is the darkest before the dawn.

ApnaPaisa is India's leading Online market place for financial products such as loans , credit cards and insurance plans . Author can be reached at www.facebook.com/apnapaisa .

Oracle Is Too Cheap to Ignore Any Longer

Within the world of investing exists a dichotomy that has often befuddled us. On the one hand, we have investors that are interested in becoming owners of some of the most profitable and rapidly growing businesses on the planet. And, on the other hand, we have the trader mentality where the sole focus is on the erratic nature of short-term stock price movement. But what is most confusing of all is how even though the interests of these two groups are the polar opposites of each other, the irony of all ironies is that they need each other. The businesses need the traders to provide the liquidity and capital they need to function. While the traders need the businesses in order to have something to trade upon.

But the main point proposed from the above diatribe is how these polar opposites functioning together can create anomalies that can be exploited. We believe that one such anomaly that currently exists is how the market is currently undervaluing the technology sector. This sector contains some of our fastest growing and most powerful companies with records of profitable growth that is unequaled in the annals of business history. But even more importantly, the odds are extremely high that the technology sector sits at the forefront of the next leg of what might be the greatest transformation in the history of business. Yet somehow, Mr. Market, the short-term trader is currently seeing fit to price our best technology companies at some of the lowest valuations ever.

If you examine most of our greatest technology names, you discover that as a sector they are trading at below market valuations. Yet, as a sector, they have produced the strongest historical growth and are expected to produce some of the strongest future growth as well. Today we find Microsoft (MSFT) trading at a PE ratio of 11, Oracle (ORCL) at a PE ratio of 12.9, and Hewlett-Packard (HPQ) can be bought at a PE of only 7. Even the mighty Apple (AAPL) computer only trades at a PE ratio of 15. These appear to be extremely low v! aluations when you consider both the importance and the promise of the technology sector's contribution to our future.

The Possibility of Abundance: Abundance — The Future Is Better Than You Think.

There is a new book soon to be published that we had the privilege to be on the advance list of purchasers. With all the pessimism and fear of the future so prevalent today, we highly encourage every investor to get a copy of this important work. We believe you will find that it is not Pollyanna but full of facts and logical hypotheses supporting the case for optimism. The book is titled "Abundance — The Future Is Better Than You Think."

The book is written by Peter H. Diamandis and Steven Kotler, who are both renowned visionaries.

"Dr. Peter H. Diamandis, is Singularity University Cofounder and X PRIZE Foundation Chairman. The X PRIZE Foundation, leads the world in designing and launching large incentive prizes to drive radical breakthroughs for the benefit of humanity. Best known for the $10 million Ansari X PRIZE for private spaceflight and the $10 million Progressive Automotive X PRIZE for 100 mile-per-gallon equivalent cars, the Foundation is now launching prizes in Exploration, Life Sciences, Energy and Education.

Steven Kotler, is a science journalist. His articles have appeared in over 60 publications, including: New York Times Magazine, Wired, Discover, Popular Science, Outside, GQ, and National Geographic. He writes "The Playing Field," a blog about the science of sport and culture for PsychologyToday.com. Steven Kotler is also the co-founder and director of research at the Flow Genome Project, an international organization devoted to putting flow state research on a hard science footing."

What follows are a few excerpts from part one of their book, Perspective:

"Technology is a resource- liberating mechanism. It can make the once scarce the now abundant."

"Of course, the make more pies approach is nothing new, but ther! e are a f! ew key differences this time around. These differences will comprise the bulk of this book, but the short version is that for the first time in history, our capabilities have begun to catch up to our ambitions. Humanity is now entering a period of radical transformation in which technology has the potential to significantly raise the basic standards of living for every man, woman, and child on the planet. Within a generation, we will be able to provide goods and services, once reserved for the wealthy few, to any and all who need them. Or desire them. Abundance for all is actually within our grasp."

"In this modern age of cynicism, many of us bridle in the face of such proclamation, but elements of this transformation are already underway. Over the past 20 years, wireless technologies and the Internet have become ubiquitous, affordable, and available to almost everyone. Africa has skipped the technological generation, by-passing the land lines that stripe our Western skies for the wireless way. Mobile phone penetration is growing exponentially, from 2% in 2000, to 28% in 2009, to an expected 70% in 2013. Already folks with no education and little to eat have gained access to cellular connectivity unheard of just 30 years ago. Right now a Masai warrior with a cell phone has better mobile phone capabilities than the present United States did 25 years ago. And if he's on a smart phone with access to Google, then he has better access to information the president did just 15 years ago. By the end of 2013, the vast majority of humanity will be caught in the same World Wide Web of instantaneous, low-cost communications and information. In other words, we are now living in a world of information and communication abundance."

Oracle: A Paragon of Consistent Above-average Growth

Oracle (ORCL) is a world leader in the database software industry, and after acquiring Sun in 2010, is now the world leader in complete, open, integrated hardware and software systems. According to their webs! ite:
!
"With more than 380,000 customers — including 100 of the Fortune 100 — and with deployments across a wide variety of industries in more than 145 countries around the globe, Oracle offers an optimized and fully integrated stack of business hardware and software systems that helps organizations overcome complexity and unleash innovation."

The following graph plots Oracle's earnings-per-share growth since 1998, which averaged 20.8% per annum. Notice that the company initiated its first dividend in calendar year 2008 as depicted by the light blue shaded area on the graph.

Although Oracle (ORCL) is a leader in software innovation with a strong commitment to R&D, the company has primarily achieved its growth through acquisitions. Since calendar year 2005, the company has spent approximately $36 billion acquiring and integrating over 80 acquisitions.

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At Oracle's current price of approximately $28 per share, it is a $140 billion market cap technology titan. We would estimate fair value at approximately $49 per share (see earnings and price correlating graph below), which would give Oracle a market cap of over $246 billion. Consequently, we believe that Oracle, at its current valuation, represents an opportunity to build a position at a price that is almost 50% below its intrinsic value. The orange line with white triangles represents a PEG ratio fair valuation of 20.8. Therefore, the reader should note that any time the stock price is touching the orange line, it is trading at a PE ratio of 20.8.

But more importantly notice how the stock price has tracked the orange earnings line over time. With the exception of the irrationally exuberant period spanning 1999 to 2001, it is clear that the market has generally capitalized Oracle shares in line with its earnings growth. And, perhaps even more importantly, it is clear that every time! the stoc! k price falls below the orange earnings line, as it now does, it quickly comes back to value. Consequently, we believe the below graph paints a clear picture that based on historically normal valuation, Oracle is currently undervalued.

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When we calculate performance associated with the above graph, we discover that Oracle has significantly outperformed the S&P 500 even considering the 50% undervalued case we made above. Moreover, the 15.3% capital appreciation (closing annualized ROR) correlates to earnings growth adjusted by low valuation.

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With our next graph we overlay free cash flow (the orange shaded area marked with an F) in addition to price and earnings. Here we're provided a clear picture of Oracle's solid financial condition which supports their ability to continue making future acquisitions to support future growth.

On February 9, 2012 Oracle announced it is acquiring Taleo for $1.9 billion or $46 a share. The Taleo acquisition follows their recent acquisition of RightNow Technologies., a leading provider of cloud-based customer service. RightNow's Customer Service Cloud helps organizations deliver exceptional customer experiences across call centers, the web and social networks. We believe that both of these acquisitions indicate that Oracle is not willing to rest on its laurels and past successes, and continues to assess the future of technology.

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Our next earnings and price correlated graph calculates Oracle's earnings growth since 2003. This is offered to illustrate remarkable consistency of Oracle's growth. Our first graph covered the 15-year period (14! years pl! us the year were currently in) which averaged earnings growth of 20.8%. When calculating the shorter time frame since calendar year 2003, we discover that Oracle's earnings growth of 20.2% is virtually identical to the longer time period.

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In order to continue with our analysis of Oracle's growth, we shorten our time frame even further from 2008, the year of the great recession, to current. Here we continue to discover the remarkable consistency of Oracle's operating results. Once again we find that since 2008 Oracle has continued to grow earnings in excess of 20% per annum. Therefore, with each example we provided continuing evidence that Oracle is currently undervalued. Each time it has been undervalued in the past we see the stock price rather quickly moves back to the orange earnings justified valuation line.

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Oracle's Future

A careful examination of the above historical graphs will reveal that they do include forecasts for this fiscal year ending May 31, 2012 and a forecast for fiscal year ending May 31, 2013. Perhaps, the forecast of only 10% growth in fiscal 2013 might partially explain Oracle's current historically low valuation. Furthermore, the consensus of 24 analysts reporting to Capital IQ forecast Oracle's five-year average earnings growth rate to be 13% per annum. However, this is less than the 14.4% estimated growth by 19 analysts reporting to Zacks. Consequently, we are comfortable estimating a range of future growth of 12% to 17%.

Additionally, the reader should consider that there is at least a possibility of pessimism built into analysts' current thinking. Although Oracle's last quarterly earnings report was solid, it nevertheless disappointed analysts by missing by approximat! ely 3 cen! ts a share. However, if you study the annual rates of change of earnings growth at the bottom of the above historical earnings and price correlated graphs (orange shaded area), you'll see that this is not the first time that Oracle had a soft quarter. The reaction in their stock price acted like Oracle was going out of business, and not that they still produced a very profitable quarter.

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Thesis for Oracle's Continued Growth

There are several reasons why we believe that Oracle is capable of continuing to grow its business at above-average rates far into the foreseeable future. We believe that corporate spending on software and services will continue to be in demand. Furthermore, we believe that Oracle is poised to offer many innovative products that are not currently factored into anybody's expectations.

Also, the company's financial condition remains excellent with a solid cash position and the continuing ability to generate free cash flow. Since we cannot know what acquisitions might be on the horizon, we have to rely on their track record as a guide. And as we have illustrated in this article, their track record is superb. More importantly, so is the track record of their management team. Management does not let any grass grow underneath them, and continues to innovate. We for one don't feel it's wise to bet against them.

The future for technology is certainly an unknown. However, one thing that prospective investors should realize is that technology does not grow in a linear fashion. Instead, both the history and we believe the future of technology experiences exponential growth. No other industry understands or participates in the power of compounding more than technology has, and we believe will continue to do. However, based on what we already know about technology, it is clear that the developing world will be, and alrea! dy is, pa! rticipating in the technology revolution.

For example, according to the book "Abundance — The Future Is Better Than You Think," referenced above, the information/communication revolution that is now underway is rapidly spreading across the planet:

"Over the next eight years, 3 billion new individuals will be coming online, joining the global conversation, and contributing to the global economy. Their ideas -ideas we've never had access to-will result in new discoveries products and inventions that will benefit us all."

Although it's hard to imagine what those ideas will mean, and how much growth they will provide, we believe it's a safe bet that Oracle Corp. will be an active participant.

Summary and Conclusions

We believe that Oracle Corp., as we mentioned in our opening remarks, is just one of many technology titans that we believe the market is mispricing. Furthermore, we believe part of that stems from the general level of pessimism that has created the so-called flight to safety out of equities. Pessimism thrives on uncertainty; and one of the main attributes of technology is uncertainty. Any time a long-term investor takes a position in a technology company (business), they must do it with the realization that it's more likely than not, that any future profits they are expecting will come from products and/or services that don't even exist today.

Investing in technology is never without risk. However, the above-average growth and above-average returns that technology stocks have traditionally generated support the taking of the extra risk. During more normal and benign market environments, technology stocks usually command above-average price earnings ratios, which add even more to the risk of investing in them.

However, as we previously indicated, many of our best technology stocks are trading at historically low valuations today. Not only are today's valuations lower than the norm for technology stocks, in many cases they! are belo! w the valuations of the average company as measured by the S&P 500. Therefore, we believe that investors seeking maximum capital appreciation at reasonable levels of risk might do well to take a hard look at not only Oracle, but the technology sector in general.

Disclosure: Long ORCL, HPQ, AAPL, MSFT at the time of writing.

Disclaimer: The opinions in this document are for informational and educational purposes only and should not be construed as a recommendation to buy or sell the stocks mentioned or to solicit transactions or clients. Past performance of the companies discussed may not continue and the companies may not achieve the earnings growth as predicted. The information in this document is believed to be accurate, but under no circumstances should a person act upon the information contained within. We do not recommend that anyone act upon any investment information without first consulting an investment adviser as to the suitability of such investments for his specific situation.

10 Best Safest Stocks To Buy For 2014

The following video is from Friday's Investor Beat, in which host James Early and analysts Ron Gross and Charly Travers dissect the hardest-hitting investing stories of the day.

Shares of Google rise on better-than-expected earnings, but should investors be concerned about the decline in cost per clicks? Chipotle serves us a 22% increase in first-quarter profits despite higher food costs. Will shares stay hot? And SeaWorld makes a big splash with its IPO. Should investors take the plunge? Our analysts also discuss why they're watching Apple and Coach.

As one of the most dominant Internet companies ever, Google has made a habit of driving strong returns for its shareholders. However, like many other web companies, it's also struggling to adapt to an increasingly mobile world. Despite gaining an enviable lead with its Android operating system, the market isn't sold. That's why it's more important than ever to understand each piece of Google's sprawling empire. In The Motley Fool's new premium research report on Google, we break down the risks and potential rewards for Google investors. Simply click here now to unlock your copy of this invaluable resource.

10 Best Safest Stocks To Buy For 2014: Under Armour Inc.(UA)

Under Armour, Inc. develops, markets, and distributes performance apparel, footwear, and accessories for men, women, and youth primarily in the United States, Canada, and internationally. It offers products made from moisture-wicking synthetic fabrics designed to regulate body temperature and enhance performance regardless of weather conditions. The company provides its products in three fit types: compression (tight fitting), fitted (athletic cut), and loose (relaxed) extending across the sporting goods, outdoor, and active lifestyle markets. Its footwear offerings comprise football, baseball, lacrosse, softball, and soccer cleats; slides; performance training footwear; and running footwear. The company also provides baseball batting, football, golf, and running gloves, as well as licenses bags, socks, headwear, custom-molded mouth guards, and eyewear that are designed to be used and worn before, during, and after competition. Under Armour sells its products through retai l stores, as well as directly to consumers through its own retail outlets and specialty stores, Website, and catalogs. The company was founded in 1996 and is headquartered in Baltimore, Maryland.

Advisors' Opinion:

• [By Glenn]  

  Current Price: $27.27 12-month target: $37

  I see potential in opportunities for new product adjacencies, and expanding distribution worldwide. Footwear growth will continue to increase. Revenues for these products have increased over 69% in 2009. Adding to this I still see growth in Under Armour’s apparel sales, which are up 8%. Under Armor had yet to even break into the international market, which offers a plethora of new opportunities for this growing brand. I believe sales will rise drastically in 2010 driven by international sales, new women’s clothing line, and expansion within their own footwear line.

10 Best Safest Stocks To Buy For 2014: Petroleo Brasileiro S.A.- Petrobras(PBR)

Petroleo Brasileiro S.A. primarily engages in oil and natural gas exploration and production, refining, trade, and transportation businesses. The company?s Exploration and Production segment involves in the exploration, production, development, and production of oil, liquefied natural gas (LNG), and natural gas in Brazil. This segment supplies its products to the refineries in Brazil, as well as sells surplus petroleum and byproducts in domestic and foreign markets. Its Supply segment engages in the refining, logistics, transportation, and trade of oil and oil products; export of ethanol; and extraction and processing of schist, as well as holds interests in companies of the petrochemical sector in Brazil. The Gas and Energy segment involves in the transportation and trade of natural gas produced in or imported into Brazil; transportation and trade of LNG; and generation and trade of electric power. In addition, the segment has interests in natural gas transportation and d istribution companies; and thermoelectric power stations in Brazil, as well engages in fertilizer business. The Distribution segment distributes oil products, ethanol, and compressed natural gas in Brazil. The International segment involves in the exploration and production of oil and gas, as well as in supplying, gas and energy, and distribution operations in the Americas, Africa, Europe, and Asia. Further, the company involves in biofuel production business. Petroleo Brasileiro was founded in 1953 and is based in Rio de Janeiro, Brazil.

Advisors' Opinion:

• [By Dave Friedman]

  Institutional investors bought 78,663,680 shares and sold 101,125,380 shares, for a net of -22,461,700 shares. This net represents 0.23% of common shares outstanding. The number of shares outstanding is 9,872,826,100. The shares recently traded at $27.61 and the company’s market capitalization is $170,178,700,000.00. About the company: Petroleo Brasileiro S.A. – Petrobras explores for and produces oil and natural gas. The Company refines, markets, and supplies oil products. Petrobras operates oil tankers, distribution pipelines, marine, river and lake terminals, thermal power plants, fertilizer plants, and petrochemical units. The Company operates in South America and elsewhere around the world.

Top 10 Penny Stocks For 2014: Goldman Sachs Group Inc.(The)

The Goldman Sachs Group, Inc., together with its subsidiaries, provides investment banking, securities, and investment management services to corporations, financial institutions, governments, and high-net-worth individuals worldwide. Its Investment Banking segment offers financial advisory, including advisory assignments with respect to mergers and acquisitions, divestitures, corporate defense, risk management, restructurings, and spin-offs; and underwriting securities, loans and other financial instruments, and derivative transactions. The company?s Institutional Client Services segment provides client execution activities, such as fixed income, currency, and commodities client execution related to making markets in interest rate products, credit products, mortgages, currencies, and commodities; and equities related to making markets in equity products, as well as commissions and fees from executing and clearing institutional client transactions on stock, options, and fu tures exchanges. This segment also engages in the securities services business providing financing, securities lending, and other prime brokerage services to institutional clients, including hedge funds, mutual funds, pension funds, and foundations. Its Investing and Lending segment invests in debt securities, loans, public and private equity securities, real estate, consolidated investment entities, and power generation facilities. This segment also involves in the origination of loans to provide financing to clients. The company?s Investment Management segment provides investment management services and investment products to institutional and individual clients. This segment also offers wealth advisory services, including portfolio management and financial counseling, and brokerage and other transaction services to high-net-worth individuals and families. In addition, it provides global investment research services. The company was founded in 1869 and is headquartered in New York, New York.

10 Best Safest Stocks To Buy For 2014: Fluor Corporation(FLR)

Fluor Corporation, through its subsidiaries, provides engineering, procurement, construction, maintenance, and project management services worldwide. Its Oil & Gas segment offers design, engineering, procurement, construction, and project management services to upstream oil and gas production, downstream refining, chemicals, and petrochemicals industries. This segment also provides consulting services comprising feasibility studies, process assessment, and project finance structuring and studies. The company?s Industrial & Infrastructure segment offers design, engineering, procurement, and construction services to the transportation, wind power, mining and metals, life sciences, manufacturing, commercial and institutional, telecommunications, microelectronics, and healthcare sectors. Its Government segment provides engineering, construction, logistics support, contingency response, management, and operations services to the United States government focusing on the Departme nt of Energy, the Department of Homeland Security, and the Department of Defense. The company?s Global Services segment offers operations and maintenance, small capital project engineering and execution, site equipment and tool services, industrial fleet services, plant turnaround services, temporary staffing services, and supply chain solutions. Its Power segment provides engineering, procurement, construction, program management, start-up and commissioning, and operations and maintenance services to the gas fueled, solid fueled, plant betterment, renewables, nuclear, and power services markets. The company also offers unionized management and construction services in the United States and Canada. Fluor Corporation was founded in 1912 and is headquartered in Irving, Texas.