Wednesday, July 31, 2013

Best China Companies To Own In Right Now

In 2009 I called China the “Michael Jackson economy,” meaning that it was kept going by artificial stimulants, but that inevitably their cumulative effects would cause serious, and perhaps fatal problems. They mask the effect of the underlying ailment, and have severe side effects. China responded to the 2008 financial crisis by engaging in massive stimulus, and has inflated credit bubbles whenever growth stuttered in the past several years. Moreover, allocation of credit and investment in the economy is subject to substantial direct and indirect government control. Local governments invest massive amounts in infrastructure and housing projects, and the banking system is tilted to direct credit to large state enterprises that invest primarily in heavy industry-steel manufacture and shipbuilding, for instance.

Best China Companies To Own In Right Now: Air Methods Corporation(AIRM)

Air Methods Corporation, together with its subsidiaries, provides air medical emergency transport services and systems in the United States. It transports persons requiring intensive medical care from either the scene of accident or general care hospitals to highly skilled trauma centers or tertiary care centers. The company operates through three segments: Community-Based Services, Hospital-Based Services, and United Rotorcraft. The Community-Based Services segment provides air medical transportation services, including aircraft operation and maintenance, medical care, dispatch and communications, and medical billing and collection services. This segment operates 201 helicopters and 15 fixed wing aircraft in 29 states. The Hospital-Based Services segment offers air medical transportation services, and medically equipped helicopters and airplanes for hospitals. It operates 212 helicopters and 6 fixed wing aircraft in 34 states. The United Rotorcraft segment designs, manufa ctures, installs, and certifies modular medical interiors, multi-mission interiors, and other aerospace and medical transport products for domestic and international customers, as well as provides quality assurance and certification services. Air Methods Corporation was founded in 1982 and is headquartered in Englewood, Colorado.

Best China Companies To Own In Right Now: Mitel Networks Corporation(MITL)

Mitel Networks Corporation provides integrated communications solutions to the small-to-medium sized enterprise market in the United States, Europe, the Middle East, Africa, Canada, Caribbean, Latin America, and the Asia Pacific. It offers Internet protocol (IP) telephony platforms, including IP telephony software that performs various functions comprising multi-media call control and communications, which allow business users to reach each other, share information, and collaborate; appliances; and desktop devices, such as IP and digital phones, specialty desktop devices, and peripherals. The company also provides a suite of UCC applications, which consist unified communicator advanced, mobility, customer interaction solution, unified messaging, speech auto attendant, telecollaboration solution, teleworker solution, and business dashboard, as well as audio, video, and Web conferencing for integrating voice, video, and data communications with business applications. In addi tion, it offers network services that include local access services; long distance services; mobile voice and data services; data services, such as Internet access and private networking services; hosted offerings, which comprise network monitoring and management, audio conferencing, Web conferencing, hosted secure Internet access, and Web hosting; and hosted IP telephony services. Further, the company provides managed services, including project management, installation, training, maintenance, professional, consulting, business requirements review, and disaster recovery planning services; support services; and financing of its solutions. It serves education, government, healthcare, hospitality, and retail markets through wholesale distributors, solution providers, system integrators, authorized channel partners, and other technology providers. The company is headquartered in Ottawa, Canada.

Top Stocks To Invest In: Cls Holdings(CLI.L)

CLS Holdings plc engages in the investment, development, and management of commercial properties, primarily office buildings. It leases its properties for office, industrial, residential, community centre, car parking, leisure, studios/workshops, nursing home, and education/hospital uses to various sectors, including government, business services, manufacturing, information technology, and finance. As of December 31, 2010, the company had a portfolio of 28 properties with an aggregate lettable area of 127,700 square meters in London, the United Kingdom; 26 properties covering an area of 96,500 square meters in France; 16 properties with 138,000 square meters of lettable space in Germany; and approximately an area of 45,500 square meters in Sweden. CLS Holdings plc was founded in 1987 and is based in London, the United Kingdom.

Tuesday, July 30, 2013

Boeing's F-15 on Target for Largest Foreign Arms Sale in U.S. History

The U.S. is in the middle of major defense budget cuts because of sequestration, but Saudi Arabia is clearly not in the same predicament. In fact, the Royal Saudi Air Force, or RSAF, is in the middle of a fleet modernization program and has gone on a veritable shopping spree with U.S defense contractors. More pointedly, this latest venture is the largest foreign arms sale in U.S. history. For Boeing's (NYSE: BA  ) F-15SA, in particular, this is excellent news. 

Photo: U.S. Air Force, via Wikimedia Commons. 

Boeing on target
In 2011, Air Force officials announced that the RSAF would purchase 84 new Boeing F-15SA fighters and upgrade 70 of its current F-15C/D Eagle Fleet aircraft to the SA configuration -- since reduced to 68 upgrades -- in a deal worth $3.5 billion for Boeing, and part of a $29.4 billion foreign military sale between the U.S. and Saudi Arabia.

Since then, Boeing's F-15SA successfully completed its maiden voyage, and met all of the test objectives, on Feb. 20, and in a financial statement released on July 3, Boeing revealed that three F-15SAs had been delivered for the flight trials campaign. Although the report didn't specify delivery to Saudi Arabia, the RSAF is currently the only customer for the new F-15SA. 

Put together, these reports indicate that Boeing's F-15SA is on track for its scheduled 2015 delivery to the Kingdom of Saudi Arabia. Further, Col. Robert Stambaugh, the Air Force Security Assistance program manager for the F-15SA program at Robins Air Foce Base, Ga., stated, "Completing this major milestone in less than one year after program implementation was truly remarkable." Great news for Boeing. It's also great news for Lockheed Martin (NYSE: LMT  ) , which is helping with modernization of the F-15s, for the fixed price of $253.4 million.  

Clear skies ahead
The news that Boeing is on track with its F-15SA is certainly welcome, especially given the latest issues with the Dreamliner. And while nothing is certain regarding an on-time delivery of the F-15SAs, right now, it looks promising.

Boeing has had a rocky few weeks, but that doesn't mean its future isn't bright. Still, there are some things to consider before investing in Boeing. A recent Motley Fool report, "3 Strong Buys for a Global Economic Recovery," outlines three companies, including Boeing, that could take off when the global economy gains steam. Click here to read the free full report!

2 Stocks Leading the Dow to New Heights

Today, the Dow Jones Industrial Average (DJINDICES: ^DJI  ) is slowly continuing its upward climb. As of 1 p.m. EDT the Dow is up just 11 points, while the S&P 500 (SNPINDEX: ^GSPC  ) is up about two points.

There were no U.S. economic releases today. The market is awaiting Wednesday's release of the notes from the May 1 Federal Open Market Committee meeting. Investors hope to get more information on when the Fed will slow or stop its quantitative-easing program, in which the Fed is purchasing $85 billion worth of long-term assets each month in an effort to keep rates down and spur the economy.

Two weeks ago The Wall Street Journal's Jon Hilsenrath laid out the Fed's exit strategy. He said the Fed plans to slow purchases depending on inflation and the performance of the economy. That's in contrast to 2003, when the Fed steadily raised rates by 0.25% for 17 straight quarters. The Fed wants to give itself some leeway and avoid surprising investors with whatever action it ends up taking.

On days when there is no real news, you see the underlying trend of the market -- which has been heading straight up this year. Leading the Dow higher today is American Express (NYSE: AXP  ) , up 1.6% to $74.48. The company's stock has risen 30% this year, as American Express benefits from the improving economy. And unlike Visa and MasterCard, American Express is both a payment-processor and a lender, so as consumers spend more and default less often on their credit cards, the company benefits doubly.

Second for the Dow today is Alcoa (NYSE: AA  ) , up 1.3% to $8.72. Alcoa's stock has been weighed down for the past few years by overcapacity in the aluminum industry, as well as slowing demand around the world. The aluminum giant has been cutting production at its highest-cost facilities in an effort to lower capacity and combat the drop in prices. While Alcoa expects worldwide demand to grow 7% this year, that won't mean a thing if supply grows with it.

Materials industries are traditionally known for their high barriers to entry, and the aluminum industry is no exception. Controlling about 15% of global production in this highly consolidated industry, Alcoa is in prime position to take advantage of growth that some expect will lead to total industry revenue approaching $160 billion by 2017. Based on this prospect and several other company-specific factors, Alcoa is certainly worth a closer look. For a Foolish investment perspective on this global giant, simply click here now to get started.

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More Expert Advice from The Motley Fool
The Motley Fool's chief investment officer has selected his No. 1 stock for the next year. Find out which stock in our brand-new free report: "The Motley Fool's Top Stock for 2013." I invite you to take a copy, free for a limited time. Just click here to access the report and find out the name of this under-the-radar company.

Sunday, July 28, 2013

Hot Growth Companies To Invest In Right Now

Las Vegas Sands (NYSE:LVS) will report its 1Q 2013 earnings on May 1. Despite a slowdown in the Chinese economy last year, the company continued to do well in Macau, the world's biggest casino market. Given the success of Las Vegas Sands' integrated resorts in Macau and increased gaming revenues in China, we expect good results in the first quarter. However, growth in the company's Singapore operations is likely to be slow due to relatively strict government regulations and a decline in the number of foreign visitors

Riding High On Macau

For the first three months of 2013, Macau's gaming revenues surged 15% to $10 billion compared to the same period last year. In March alone, revenues were up 25% amounting to $4 billion (source). While Macau's strong growth will help the casino operators in the region, Las Vegas Sands in particular will be a key beneficiary as it has established a critical mass in the market with its diverse properties and resorts. This gives the company a competitive edge over the other players such as Wynn Resorts (NASDAQ:WYNN) and MGM Resorts International (NYSE:MGM).

Hot Growth Companies To Invest In Right Now: Nordstrom Inc.(JWN)

Nordstrom, Inc., a fashion specialty retailer, offers apparel, shoes, cosmetics, and accessories for women, men, and children in the United States. It offers a selection of brand name and private label merchandise. The company sells its products through various channels, including Nordstrom full-line stores, off-price Nordstrom Rack stores, Jeffrey? boutiques, treasure & bond, and Last Chance clearance stores; and its online store, nordstrom.com, as well as through catalog. Nordstrom also provides a private label card, two Nordstrom VISA credit cards, and a debit card for Nordstrom purchases. The company?s credit and debit cards feature a shopping-based loyalty program. As of September 30, 2011, it operated 222 stores, including 117 full-line stores, 101 Nordstrom Racks, 2 Jeffrey boutiques, 1 treasure & bond store, and 1 clearance store in 30 states. The company was founded in 1901 and is based in Seattle, Washington.

Advisors' Opinion:
  • [By Kevin1977]

    Director of Nordstrom Inc., Felicia D Thornton, bought 1,140 shares on 9/09/2011 at an average price of $47.89. Nordstrom, Inc. is one of the nation's fashion specialty retailers, with stores located in a number of states, including full-line stores, Nordstrom Racks, Faconnable boutiques, and free-standing shoe stores. Nordstrom Inc. has a market cap of $10.44 billion; its shares were traded at around $47.89 with a P/E ratio of 15.7 and P/S ratio of 1.1. The dividend yield of Nordstrom Inc. stocks is 2% Nordstrom Inc. had an annual average earnings growth of 27.3% over the past 10 years. GuruFocus rated Nordstrom Inc. the business predictability rank of 3.5-star.

    On August 11, Nordstrom Inc. reported net earnings of $175 million, or $0.80 per diluted share, for the second quarter ended July 30, 2011. This represented an increase of 20 percent compared with net earnings of $146 million, or $0.66 per diluted share, for the same quarter last year.Second quarter same-store sales increased 7.3 percent compared with the same period in fiscal 2010. Net sales in the second quarter were $2.72 billion, an increase of 12.4 percent compared with net sales of $2.42 billion during the same period in fiscal 2010.

    Last week, Director Felicia D Thornton bought 1,140 shares of JWN stock.

    Executive Vice President Ken Worzel and Director Philip G Satre bought shares in August.

Hot Growth Companies To Invest In Right Now: MEDIFAST INC(MED)

Medifast, Inc., through its subsidiaries, engages in the production, distribution, and sale of weight management and disease management products, and other consumable health and diet products in the United States. The company?s product lines include weight and disease management, meal replacement, and vitamins. It also operates weight control centers that offer Medifast programs for weight loss and maintenance, customized patient counseling, and inbody composition analysis. The company markets its products under the Medifast and Essential brand names, including shakes, appetite suppression shakes, women?s health shakes, diabetics shakes, joint health shakes, coronary health shakes, calorie burn drinks, calorie burn flavor infusers, antioxidant shakes, antioxidant flavor infusers, bars, crunch bars, soups, chili, oatmeal, pudding, scrambled eggs, hot cocoa, cappuccino, chai latte, iced teas, fruit drinks, pretzels, puffs, brownie, pancakes, soy crisps, crackers, and omega 3 and digestive health products. Medifast Inc. sells its products through various channels of distribution comprising Web, call center, independent health advisors, medical professionals, weight loss clinics, and direct consumer marketing supported via the phone and the Web; Take Shape for Life, a physician led network of independent health coaches; and weight control centers. The company was founded in 1980 and is headquartered in Owings Mills, Maryland.

Advisors' Opinion:
  • [By Mark]

    Revenues are expected to grow 27% next year and yet MEDIFAST (MED: 15.68 0.00%) trades at only 16x consensus 2011 earnings. The company continues to gain market share in the competitive weight management sector and provides investors with the double benefit of both a growth stock and a potential acquisition target.

Best Clean Energy Stocks To Own For 2014: Crocs Inc.(CROX)

Crocs, Inc. and its subsidiaries engage in the design, development, manufacture, marketing, and distribution of footwear, apparel, and accessories for men, women, and children. The company primarily offers casual and athletic shoes, and shoe charms. It also designs and sells a range of footwear and accessories that utilize its proprietary closed cell-resin, called Croslite. The company?s footwear products include boots, sandals, sneakers, mules, and flats. In addition, it provides footwear products for the hospital, restaurant, hotel, and hospitality markets, as well as general foot care and diabetic-needs markets. Further, the company offers leather and ethylene vinyl acetate based footwear, sandals, and printed apparels principally for the beach, adventure, and action sports markets; and accessories comprising snap-on charms. The company sells its products through the United States and international retailers and distributors, as well as directly to end-user consumers th rough its company-operated retail stores, outlets, kiosks, and Web stores primarily under the Crocs Work, Crocs Rx, Jibbitz, Ocean Minded, and YOU by Crocs brand names. As of December 31, 2010, it operated 164 retail kiosks located in malls and other high foot traffic areas; 138 retail stores; 76 outlet stores; and 46 Web stores. Crocs, Inc. operates in the Americas, Europe, and Asia. The company was formerly known as Western Brands, LLC and changed its name to Crocs, Inc. in January 2005. Crocs, Inc. was founded in 1999 and is headquartered in Niwot, Colorado.

Advisors' Opinion:
  • [By Paul]  

    They’re back! Two years ago everyone was convinced that Crocs (CROX: 23.33 0.00%) was just a fad, but their stock price exploded in 2010 gaining 206%. Revenues are expected to climb 20% this year and analysts are looking for 27% earnings growth in 2011. That type of growth could make Crocs a hot item again in 2011, especially if they can continue to top Wall Street’s estimates each quarter.

Hot Growth Companies To Invest In Right Now: Thoratec Corporation(THOR)

Thoratec Corporation engages in the development, manufacture, and marketing of proprietary medical devices used for circulatory support. The company?s primary product lines include ventricular assist devices, such as HeartMate II, an implantable left ventricular assist device consisting of a rotary blood pump to provide intermediate and long-term mechanical circulatory support (MCS); and HeartMate XVE, an implantable and pulsatile left ventricular assist device for intermediate and longer-term MCS. Its ventricular assist devices also comprise Paracorporeal Ventricular Assist Device, an external pulsatile ventricular assist device, which provides left, right, and biventricular MCS approved for bridge-to-transplantation (BTT), including home discharge, and post-cardiotomy myocardial recovery; and Implantable Ventricular Assist Device, an implantable and pulsatile ventricular assist device designed to provide left, right, and biventricular MCS approved for BTT comprising hom e discharge, and post-cardiotomy myocardial recovery. The company also provides CentriMag, an extracorporeal full-flow acute surgical support platform that offers support up to 30 days for cardiac and respiratory failure. In addition, it offers PediMag and PediVAS extracorporeal full-flow acute surgical support platforms designed to provide acute surgical support to pediatric patients. The company sells its products through direct sales force in the United States, as well as through a network of distributors internationally. Thoratec Corporation was founded in 1976 and is headquartered in Pleasanton, California.

Advisors' Opinion:
  • [By McWillams]

    Wall Street is expecting Thoratec’s (THOR: 30.70 0.00%) growth rate to accelerate to 15% next year with earnings growth of over 20%. That type of growth has Wall Street analysts bullish on the medical device stock. The stock has a consensus price target of $38 and some analysts think THOR could go to $50.

Hot Growth Companies To Invest In Right Now: Intuitive Surgical Inc.(ISRG)

Intuitive Surgical, Inc. designs, manufactures, and markets da Vinci surgical systems for various surgical procedures, including urologic, gynecologic, cardiothoracic, general, and head and neck surgeries. Its da Vinci surgical system consists of a surgeon?s console or consoles, a patient-side cart, a 3-D vision system, and proprietary ?wristed? instruments. The company?s da Vinci surgical system translates the surgeon?s natural hand movements on instrument controls at the console into corresponding micro-movements of instruments positioned inside the patient through small puncture incisions, or ports. It also manufactures a range of EndoWrist instruments, which incorporate wrist joints for natural dexterity for various surgical procedures. Its EndoWrist instruments consist of forceps, scissors, electrocautery, scalpels, and other surgical tools. In addition, it sells various vision and accessory products for use in conjunction with the da Vinci Surgical System as surgical procedures are performed. The company?s accessory products include sterile drapes used to ensure a sterile field during surgery; vision products, such as replacement 3-D stereo endoscopes, camera heads, light guides, and other items. It markets its products through sales representatives in the United States, and through sales representatives and distributors in international markets. The company was founded in 1995 and is headquartered in Sunnyvale, California.

Advisors' Opinion:
  • [By Jim Lowell]

    Intuitive Surgical (ISRG: 329.49 0.00%) is an expensive stock and their stock price is currently well below the $400 level that it flirted with in April. However, the stock is a compelling growth story with revenues and earnings expected to climb 19% in 2011. The company faces little competitive pressure and 2011 is likely the year that consumers opt for procedures that they delayed in 2009-10. That could produce some blowout earnings results for ISRG in 2011.

  • [By Jim Lowell]

    Intuitive Surgical (ISRG: 329.49 0.00%) is an expensive stock and their stock price is currently well below the $400 level that it flirted with in April. However, the stock is a compelling growth story with revenues and earnings expected to climb 19% in 2011. The company faces little competitive pressure and 2011 is likely the year that consumers opt for procedures that they delayed in 2009-10. That could produce some blowout earnings results for ISRG in 2011.

Hot Growth Companies To Invest In Right Now: Sara Lee Corporation(SLE)

Sara Lee Corporation engages in the manufacture and marketing of a range of branded packaged meat, bakery, and beverage products worldwide. Its packaged meat products include hot dogs and corn dogs, breakfast sausages, sandwiches and bowls, smoked and dinner sausages, premium deli and luncheon meats, bacon, beef, turkey, and cooked ham. It also offers frozen baked products, which comprise frozen pies, cakes, cheesecakes, pastries, and other desserts. In addition, Sara Lee provides roast, ground, and liquid coffee; cappuccinos; lattes; and hot and iced teas, as well as refrigerated dough products. The company sells its products under Hillshire Farm, Ball Park, Jimmy Dean, Sara Lee, State Fair, Douwe Egberts, Senseo, Maison du Caf Advisors' Opinion:

  • [By Carlson]

    Director of Sara Lee Corp., James S Crown, bought 37,500 shares on 9/12/2011 at an average price of $17.5. Sara Lee Corporation is a global manufacturer and marketer of high-quality, brand-name products for consumers throughout the world. Sara Lee Corp. has a market cap of $10.24 billion; its shares were traded at around $17.5 with a P/E ratio of 19.9 and P/S ratio of 1.2. The dividend yield of Sara Lee Corp. stocks is 2.7%.

    On August 11, Sara Lee Corp. reported earnings for the fourth quarter 2011. The fourth quarter included an 8% increase in adjusted net sales from continuing operations to $2.3 billion; 9% reported net sales increase, 40% increase in adjusted operating income to $189 million; and reported operating income increase of 19%.

    Last week, Director James S Crown bought 37,500 shares of SLE stock. Executive Chairman Jan Bennink bought 58,400 shares in August.

Saturday, July 27, 2013

Facebook’s Youth Advantage Explained

Teens may like Twitter more than they did a year ago, but they still love Facebook (NASDAQ: FB  ) . New research from the Pew Research Center and Harvard's Berkman Center shows that 94% have a page and 81% say Facebook is the social network they use most frequently.

Twitter's influence is clearly growing. Nearly a quarter of teens make use of the microblogger, up from 16% in 2011. But that's still orders of magnitude less than what Facebook serves. So long as younger users continue to prefer Mark Zuckerberg's creation, the more attractive it is as an investment, says Tim Beyers of Motley Fool Rule Breakers and Motley Fool Supernova in the following video.

What attracts teens to Facebook is, in many ways, reminiscent of what attracts business users to LinkedIn, Tim says. Both networks make it easy to organize into groups built around common interests, and teens are a cliquish sort.

They also possess an inordinate amount of disposable income. In appealing to teens, Facebook is positioning itself to sell more profitable ads and deliver the big gains in per-user revenue investors have long been hoping for. It's an all or nothing bet that, judging by the research, is working out well so far.

Do you agree? Please watch the video to get Tim's full take, and then let us know whether you would buy, sell, or short Facebook stock at current prices.

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The Fool Looks Ahead

There's never a dull week on Wall Street. Let's go over some of the news that will shape the week to come.

Monday
The first trading day of the week kicks off with Herbalife (NYSE: HLF  ) reporting quarterly results on Monday afternoon. Is Herbalife a fast-growing company that sells nutritional products through a network of independent distributions? Is Herbalife a pyramid scheme with distributors merely recruiting more distributors?

This has been one of the more heated publicly traded companies over the past year, as Bill Ackman (the bear) and Carl Icahn (the bull) have a lot of money riding on which way Herbalife ultimately turns.

Tuesday
3D Systems (NYSE: DDD  ) steps up on Tuesday morning with fresh financials. The company went public two years ago, failing to generate a whole lot of excitement in 2011. It was a different story last year, as the stock soared on the prospects for 3-D printing.

This isn't sci-fi stuff. 3D Systems has real products on the market, and they're selling briskly. Analysts see share growth in revenue and earnings come Tuesday.

Wednesday
NVIDIA (NASDAQ: NVDA  ) is finally ready to pull up its SHIELD. The video graphics giant is putting out the handheld gaming device that plays PC and Andriod games, complete with a 5-inch touchscreen and an analog controller.

NVIDIA abruptly delayed the release last month, blaming a faulty component provided by a third-party supplier. The company has also slashed the price by $50 to $300.

The device is geared toward diehard gamers, but it remains to be seen whether they're geared up for the device.

Thursday
ZAGG (NASDAQ: ZAGG  ) has been a brutal disappointment for investors who thought they were getting a thinking investor's play on the smartphone and tablet revolutions. The maker of protective screens, keyboard covers, and other mobile-gadget accessories has fallen hard after hosing down its outlook twice over the past three months.

ZAGG reports on Thursday, but it has already let the market know that this is going to be another difficult quarter.

Friday
The market is usually quiet on Fridays, but we're waist-deep in earnings season. One of the companies checking in with its latest quarterly financials is Alpha Natural Resources (NYSE: ANR  ) .

Coal has been out of favor lately, and Alpha Natural Resources has shed more than 90% of its value since the start of 2011. The supplier of metallurgical and thermal coal is posting losses these days, but the silver lining is that it has posted much smaller deficits than analysts were expecting in its three previous quarters.

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Friday, July 26, 2013

Invest Like A Billionaire And Earn A 12% Yield

What does Paris Hilton have in common with Andrew Carnegie, J.P. Morgan, Carl Icahn, T. Boone Pickens and Henry Kravis, along with a host of other ultra-wealthy people? 

I am not talking about anything as obvious as having lots of money. The core concept here is a never-changing rule of wealth in a capitalistic society: Nearly every vast fortune was built upon investing in businesses. 

Businesses are the cornerstone of capitalism, and private equity and debt is the fuel that transforms them into society-sustaining enterprises. Since the Industrial Revolution, wealthy investors have been directly involved in providing equity, leadership and knowledge to growing companies. These growing entities, in turn, enrich their risk-taking, life providers, beyond belief in many cases.

 

This rarefied world of directly helping companies thrive is no longer just reserved for the wealthy. Today, anyone with a brokerage account can get involved in the business of funding a business. One of the easiest ways to do this is to invest in business development companies (BDCs).

My colleague Amy Calistri talks about dividend-paying dynamos like these in her Daily Paycheck advisory. BDCs lend capital to established small or midsize companies to assist their growth. 

In fact, by investing directly in companies, BDCs have advantages that even the world's wealthiest families would have a hard time attaining. The primary advantage available to the small investor in BDCs -- other than access to a variety of vetted and proven companies -- is liquidity. 

When wealthy investors and institutions invest directly in private companies, there is generally a lockup of funds. This lockup means the invested dollars are unavailable for a period of time, which can sometimes be years. In contrast, shares of BDCs can be bought and sold with zero lockup of capital. This is a huge positive, particularly in a volatile economy. 

Other advantages include consistently high dividend payouts, diversification across a wide swath of sectors, expert guidance, no corporate income tax, and the potential to profit despite rising interest rates. Let me explain the advantages in terms of taxes and rising rates.

Tax Advantages: In the eyes of the Internal Revenue Service, BDCs are pass-through entities, meaning they don't pay corporate income taxes. Instead of directly paying tax, BDCs must pay out a minimum of 90% of their net income to shareholders, generally through dividends. In other words, shareholders are taxed on the dividends rather than the company being taxed. 

Rising Interest Rates: This can create headwinds for nearly every investment. However, BDCs can be different. If the majority of a BDC's funds are in floating-rate investments and it's borrowing money at a fixed rate, the BDC can charge higher rates as rates increase, but the rates locked in by the BDC remain the same. This can result in the BDC increasing its earnings in an environment of rising rates. 

My favorite BDC is Fifth Street Finance (Nasdaq: FSC), which fits all the points made above and has been in business for 15 years. 

Fifth Street Finance calls itself an alternative lender that provides capital to proven small to midsize companies alongside world-class private equity companies. Here's how it works: A private equity firm finds a company it wants to purchase, with the goal of unlocking the untapped potential or other value inherent within the targeted company and selling the company at a profit. The private equity firm provides the equity to purchase the company, and Fifth Street steps in by providing the needed debt. Fifth Street's profits come from interest and capital gains. 

Fifth Street is widely diversified across various sectors such as health care, technology, defense and energy, among others. It pays a monthly dividend of about 10 cents per share, which works out to about a 12% yield. As of late March, 74% of Fifth Street's debt investments are in floating-rate securities. As I explained, this stands to benefit the company should interest rates continue to increase. 

What closed the deal for me on Fifth Street is the recent buying by insiders and institutional investors. On June 19, Fifth Street CEO Leonard Tannenbaum added 20,000 shares to his portfolio. In addition, a variety of other company officers have recently increased their holdings -- and there's no stronger endorsement than insider buying. In addition, hedge fund manager David Einhorn of Greenlight Capital recently purchased almost 2 million shares, and even analysts at JPMorgan Chase (NYSE: JPM) say the dividend is "secure."  

Technically, I like this stock as a momentum play. Buying now after the breakout makes technical sense.

Risks to Consider: Fifth Street Finance does its best to mitigate risk through diversification and investing alongside top-tier private equity companies, but losses are always a possibility. In addition, be aware of the risks of overleveraging and being locked into illiquid investments. Always use stops and position size properly when investing.

Action to Take --> Adding Fifth Street Finance to your portfolio of high-dividend stocks is an ideal way to diversify and add another revenue source.

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Thursday, July 25, 2013

Dunkin' Donuts Finally Makes It to Southern California

For the first time in its 63-year history, Dunkin' Donuts, part of the Dunkin' Brands Group (NASDAQ: DNKN  ) , will open restaurants in the Southern California market after signing multi-unit store development agreements with four franchise groups, the company announced today.

Combined, the four franchise groups have committed to opening 45 new Dunkin' Donuts in Southern California, with the first stand-alone facilities scheduled for 2015 in Orange and Los Angeles counties, Dunkin' Donuts said. In addition to its plans for stand-alone restaurants, some "non-traditional Dunkin' Donuts locations may open over the next several months," according to today's press release.

Paul Twohig, president Dunkin' Donuts U.S. and Canada, commented "Our continued focus on franchisee profitability and restaurant economics has made our long-awaited expansion into California possible, and we continue to believe that Dunkin' Donuts has tremendous domestic growth opportunities both east and west of the Mississippi."

The company has more than 10,500 restaurants in 31 countries.

link

Wednesday, July 24, 2013

Why Broadcom Shares Got Bonked

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

What: Shares of communications chip maker Broadcom (NASDAQ: BRCM  ) sank 15% today after its quarterly results and guidance disappointed Wall Street.

So what: Broadcom's second-quarter adjusted EPS managed to top estimates, but a slight miss on the top line -- revenue of $2.09 billion versus the consensus of $2.11 billion -- coupled with downbeat guidance for the current quarter is triggering worries over slowing growth. Specifically, analysts cited uncertainty over the company's product transition, increasing competition, and overall weakening demand for smartphones as reasons to be concerned, giving short-term-oriented traders little reason to stick around.  

Now what: Management now sees third-quarter revenue in the range of $2.05 billion to $2.2 billion, below the average analyst estimate of $2.25 billion, but expects its market share to remain in good shape for the rest of the year. "Looking forward, we see continued growth driven by our industry leading portfolio of wired and wireless communication platforms," said CEO Scott McGregor in a statement. More important, with the stock hitting a new 52-week low today and trading at a paltry forward P/E of 8, now might be an opportune time to buy into that long-term bullishness.

It's incredible to think just how much of our digital and technological lives are almost entirely shaped by just a handful of companies. Find out "Who Will Win the War Between the 5 Biggest Tech Stocks?" in The Motley Fool's latest free report, which details the knock-down, drag-out battle being waged by the five kings of tech. Click here to keep reading.

Tuesday, July 23, 2013

Why Brown-Forman's Earnings May Not Be So Hot

This Changes Everything at Pandora

One of the more impressive revelations in Pandora's (NYSE: P  ) quarterly report last week was the dramatic uptick in paying subscribers. Music fans willing to pay up for Pandora One more than doubled over the past year to top 2.5 million with 700,000 of those coming on during the first three months of this year.

This is not a big number compared to its more than 70 million active listeners. Most of Sirius XM's (NASDAQ: SIRI  ) 24.4 million subscribers are paying subscribers. Spotify attracts a smaller total audience than Pandora but has more more than twice as many premium accounts. Google (NASDAQ: GOOG  ) rolled out All Access this month exclusively as a premium platform. 

The market for premium radio is heating up, and in this video longtime Fool contributor Rick Munarriz explains why getting customers to pay up at Pandora is more important than just the subscription revenue.

Cracking open Pandora's box
Pandora has won millions of devotees among music fans but few supporters on Wall Street. The online jukebox seems to be redefining the way we consume music, a transformation that's only likely to grow. But high royalty rates and competition from all corners threatens to silence the company. Can Pandora translate success with its listeners into a prosperous business model that will deliver for investors? Learn about the key opportunities and potential pitfalls facing the upstart radio streamer in The Motley Fool's premium research report. All you have to do is click here now to subscribe to this invaluable investor's resource.

 

Monday, July 22, 2013

Can Pepsi Earnings Keep Lifting the Stock?

PepsiCo (NYSE: PEP  ) will release its quarterly report on Wednesday, but its stock has already popped higher, hitting all-time record highs earlier this month. Despite the share-price celebration, though, Pepsi earnings growth has been somewhat less impressive, raising concerns about whether the stock is getting ahead of itself.

Many investors think of PepsiCo only for its No. 2 beverage business, but the company goes a lot further than rival Coca-Cola (NYSE: KO  ) in providing both snacks and drinks for hungry consumers. The snack business introduces both opportunities and challenges for PepsiCo, and lately, the company has had to focus not just on its core North American market but also on trying to make the most of growth prospects around the world. Let's take an early look at what's been happening with PepsiCo over the past quarter and what we're likely to see in its quarterly report.

Stats on PepsiCo

Analyst EPS Estimate

$1.19

Change From Year-Ago EPS

6.3%

Revenue Estimate

$16.79 billion

Change From Year-Ago Revenue

2%

Earnings Beats in Past 4 Quarters

4

Source: Yahoo! Finance.

Can Pepsi earnings keep fizzing higher?
Analysts haven't budged on their views of Pepsi earnings in the past few months, keeping both their short-term and long-term earnings estimates stable. The stock, though, has kept climbing higher, with a better-than-10% gain in the share price since mid-April.

One big reason for the stock's strong performance is that PepsiCo has produced good growth in the past. In the first quarter, for instance, the company grew organic net revenue by 4.4%, with a large part of its growth coming from the Asia-Middle East-Africa segment and its 15% sales gains when you exclude the impact of Chinese bottling refranchising. Pepsi's Latin America Foods division also posted double-digit sales gains, with 12% growth in Brazil coming as welcome news given the economic and social tensions there.

Both PepsiCo and Coca-Cola have identified the needs to bolster their growth in markets around the world. As Fool contributor Nicole Seghetti identified last week, India is a potential battleground for both countries, as soft drinks haven't made much headway among consumers in the world's second most populous nation. As the North American market continues to mature, such opportunities are the best way for PepsiCo to grow more quickly.

Lately, Pepsi has been a subject of takeover speculation, with one rumor having the company in talks to buy home-carbonator system-maker SodaStream (NASDAQ: SODA  ) . Pepsi denied the rumors, and it's hard to see how a buyout would enhance Pepsi's prospects, given the two completely different business models.

A more intriguing proposal floating around involves activist investor Nelson Peltz and his Trian Fund Management hedge fund. Peltz believes that PepsiCo should spin off its beverage business into a separate unit, with the remaining snack division combining forces with Mondelez (NASDAQ: MDLZ  ) to create a global snack empire. By doing so, PepsiCo could bolster its overseas snack business, which arguably has better prospects than its decelerating North American snack growth.

In the Pepsi earnings report, watch for the company to give some hints about its future strategic vision. Even if neither of these business combinations become reality, PepsiCo needs to explain where it will get the growth to support its rapidly rising stock.

On top of all its other attractive traits, PepsiCo pays a great dividend. If you like high-yielding stocks, The Motley Fool has compiled a special free report outlining our nine top dependable dividend-paying stocks. It's called "Secure Your Future With 9 Rock-Solid Dividend Stocks." You can access your copy today at no cost! Just click here.

Click here to add PepsiCo to My Watchlist, which can find all of our Foolish analysis on it and all your other stocks.

Sunday, July 21, 2013

Don't Get Too Worked Up Over PhotoMedex's Earnings

Although business headlines still tout earnings numbers, many investors have moved past net earnings as a measure of a company's economic output. That's because earnings are very often less trustworthy than cash flow, since earnings are more open to manipulation based on dubious judgment calls.

Earnings' unreliability is one of the reasons Foolish investors often flip straight past the income statement to check the cash flow statement. In general, by taking a close look at the cash moving in and out of the business, you can better understand whether the last batch of earnings brought money into the company, or merely disguised a cash gusher with a pretty headline.

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

Source: S&P Capital IQ. Data is current as of last fully reported fiscal quarter. Dollar values in millions. FCF = free cash flow. FY = fiscal year. TTM = trailing 12 months.

Over the past 12 months, PhotoMedex generated $15.2 million cash while it booked net income of $24.8 million. That means it turned 6.7% of its revenue into FCF. That sounds OK. However, FCF is less than net income. Ideally, we'd like to see the opposite.

All cash is not equal
Unfortunately, the cash flow statement isn't immune from nonsense, either. That's why it pays to take a close look at the components of cash flow from operations, to make sure that the cash flows are of high quality. What does that mean? To me, it means they need to be real and replicable in the upcoming quarters, rather than being offset by continual cash outflows that don't appear on the income statement (such as major capital expenditures).

For instance, cash flow based on cash net income and adjustments for non-cash income-statement expenses (like depreciation) is generally favorable. An increase in cash flow based on stiffing your suppliers (by increasing accounts payable for the short term) or shortchanging Uncle Sam on taxes will come back to bite investors later. The same goes for decreasing accounts receivable; this is good to see, but it's ordinary in recessionary times, and you can only increase collections so much. Finally, adding stock-based compensation expense back to cash flows is questionable when a company hands out a lot of equity to employees and uses cash in later periods to buy back those shares.

So how does the cash flow at PhotoMedex look? Take a peek at the chart below, which flags questionable cash flow sources with a red bar.

Source: S&P Capital IQ. Data is current as of last fully reported fiscal quarter. Dollar values in millions. TTM = trailing 12 months.

When I say "questionable cash flow sources," I mean items such as changes in taxes payable, tax benefits from stock options, and asset sales, among others. That's not to say that companies booking these as sources of cash flow are weak, or are engaging in any sort of wrongdoing, or that everything that comes up questionable in my graph is automatically bad news. But whenever a company is getting more than, say, 10% of its cash from operations from these dubious sources, investors ought to make sure to refer to the filings and dig in.

With 34.3% of operating cash flow coming from questionable sources, PhotoMedex investors should take a closer look at the underlying numbers. Within the questionable cash flow figure plotted in the TTM period above, stock-based compensation and related tax benefits provided the biggest boost, at 28.7% of cash flow from operations. Overall, the biggest drag on FCF came from changes in accounts receivable, which represented 52.8% of cash from operations. PhotoMedex investors may also want to keep an eye on accounts receivable, because the TTM change is 2.1 times greater than the average swing over the past 5 fiscal years.

A Foolish final thought
Most investors don't keep tabs on their companies' cash flow. I think that's a mistake. If you take the time to read past the headlines and crack a filing now and then, you're in a much better position to spot potential trouble early. Better yet, you'll improve your odds of finding the underappreciated home-run stocks that provide the market's best returns.

If you're interested in companies like PhotoMedex, you might want to check out the jaw-dropping technology that's about to put 100 million Chinese factory workers out on the street – and the 3 companies that control it. We'll tell you all about them in "The Future is Made in America." Click here for instant access to this free report.

We can help you keep tabs on your companies with My Watchlist, our free, personalized stock tracking service.

Add PhotoMedex to My Watchlist.

Here's What Fairholme's Bruce Berkowitz Has Been Buying

Every quarter, many money managers have to disclose what they've bought and sold, via "13F" filings. Their latest moves can shine a bright light on smart stock picks.

Today let's look at investing giant Bruce Berkowitz. He's the founder of Fairholme Capital Management, which oversees three mutual funds of interest: the flagship Fairholme Fund (FAIRX) seeks long-term growth of capital, the Fairholme Focused Income Fund (FOCIX) seeks current income, and the Fairholme Allocation Fund (FAAFX) seeks long-term total return. The funds are all rather focused, each owning less than two dozen stock holdings instead of the hundreds that many funds own.

The Fairholme fund has many admirers, and Berkowitz was named Morningstar's fund manager of the decade in 2010. Berkowitz has some controversial holdings, such as St. Joe (NYSE: JOE  ) , the largest private landowner in Florida. While Berkowitz favors it, others, such as prominent hedge fund manager David Einhorn, have shorted it. In its last quarter, revenue shrank and net losses widened, but my colleague Matt Koppenheffer doesn't see a huge problem there, as he focuses more on the company's balance sheet.


Fairholme's reportable stock portfolio totaled $7.9 billion in value as of March 31. Its biggest holdings are AIG, Bank of America, Sears Holdings (NASDAQ: SHLD  ) , St. Joe, and Leucadia National.

Interesting developments
So what does Fairholme's latest quarterly 13F filing tell us? Here are a few interesting details.

The biggest new holdings are Chesapeake Energy (NYSE: CHK  ) and Canadian Natural Resources (NYSE: CNQ  ) . Long assailed for questionable and regrettable management moves, Chesapeake has been selling assets to pay down its significant debt -- but it hasn't been getting top dollar for them. It's not a lost cause, though, as the company's major presence in the Utica shale field, among other places, is promising, and the asset sales do make good sense.

Canadian Natural Resources is Canada's second-largest energy concern. It owns a lot of land but has suffered because of low prices for Canadian heavy crude and steep operating costs. Analysts at Zacks downgraded the stock in March, citing operational challenges and natural gas weakness as some concerns. Some see it as a possible takeover target. It stands to benefit if the controversial Keystone XL pipeline gets approved.

Among holdings in which Fairholme Capital Management increased its stake were Berkshire Hathaway and Sears Holdings, whose Kmart stores made a splash with its recent commercial for its shipping services. But many investors just don't see enough value in Sears Holdings, with its generally declining revenue and persistently negative free cash flow. Some have more faith in the new Sears Hometown and Outlets company.

Fairholme Capital Management reduced its stake in Wells Fargo and MBIA (NYSE: MBI  ) . MBIA recently won a court decision against Bank of America, with damages awarded likely to be a nice boost to MBIA and not devastating for Bank of America. MBIA's losses narrowed in its last quarter.

Finally, Fairholme's biggest closed positions included CIT Group and Jefferies Group, which was bought by Leucadia.

We should never blindly copy any investor's moves, no matter how talented the investor. But it can be useful to keep an eye on what smart folks are doing, and 13F forms can be great places to find intriguing candidates for our portfolios.

Energy investors would be hard-pressed to find another company trading at a deeper discount than Chesapeake Energy. Its share price depreciated after negative news surfaced concerning the company's management and spiraling debt picture. While the debt issues still persist, giant steps have been taken to help mitigate the problems. To learn more about Chesapeake and its enormous potential, you're invited to check out The Motley Fool's brand-new premium report on the company. Simply click here now to access your copy.

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More Expert Advice from The Motley Fool
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Saturday, July 20, 2013

Top 10 Safest Stocks To Invest In Right Now

The New York Times called it a "moment of reckoning." Widely followed commodities trader Dennis Gartman in a note to his clients wrote that he's "never...ever...EVER" seen anything quite like it.

The references, of course, are to March 15's collapse in the price of gold, the largest single-day percentage drop in 30 years, capping a two-day decline of 13%.

The selling was triggered in part by worries that Cyprus and possibly other European nations might have to dump their gold holdings to raise funds or satisfy bailout requirements. Also, after acting as a commodities tailwind for much of the past two years, the Fed's quantitative easing program looks to be winding down, which would relax inflationary pressure.

Suddenly, the "safest" investment no longer seemed so safe. In fact, there's a good chance that gold's 12-year streak of uninterrupted gains will come to an end this year.

Top 10 Safest Stocks To Invest In Right Now: 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 Fernandez]

    Under Armour designs, develops, markets, and distributes performance apparel, footwear, and accessories for men, women, and youth primarily in the United States and Canada.

    You’ve probably seen the company’s “Protect This House” or “Click-Clack” commercials, and probably seen anyone from the weekend warrior to professional sports teams wearing the company’s moisture-wicking synthetic fabrics, which are designed to keep perspiration away from the skin, and regulate body temperature regardless of weather conditions.

    I must admit for full disclosure that I am an Under Armour nut, and own about 20 pairs of their shorts, shirts and shoes.

    I can attest from personal experience as a natural bodybuilder and athlete that the Under Armour apparel are the best workout clothing I have ever worn, and they look pretty darn cool too.

    Now let me make a clear distinction between a great company, and a great stock.

    Up until recently, Under Armour was the former, but not the latter.

    It has now entered into a zone where the valuation metrics, even in the face of a consumer slowdown, is looking more and more attractive.

    In fact, Under Armour just released earnings Monday.

    They were pretty much in line with analyst’s expectations, and then Under Armour slightly lowered their forward guidance for the remainder of 2008 based on those same consumer headwinds.

    The market liked what it heard sending shares up 20% (of course, the overall market was up 10%, so…). Shares have since rebounded further are now up almost 50% from their lows just last week!

    This leads me to my investment thesis in shares of Under Armour.

    I believe that Under Armour represents one of the quintessential brands of this decade when it comes to sports apparel, the way Under Armour’s fiercest rival Nike (NYSE: NKE) dominated the 90’s.

    Until now the valuation of the company was not commensurate with the! projected profit and growth, which I thought were way too high, and still might be, along with certain inventory related problems that the company now seems to be getting a handle on.

    Still, with the spike in share price, along with the uncertainty in the market and overall economy, I feel that we will still be able to purchase shares of this great company at a great price in the near future and that we’re seeing a bit of a short squeeze in shares of Under Armour.

    Why I Like the Company: One of the quintessential brands of this decade; Valuation is reaching reasonable to “cheap” levels depending on direction of consumer market and Under Armour’s stock price; Dedicated and fully invested founder with over 77% voting power via class B shares; Improved business fundamentals via better inventory controls and operational structure, and new product offerings; Further expansion available outside the U.S.; Relatively higher margins than competition

  • [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.
  • [By Roger]

    Under Armour (NYSE:UA), a maker and designer of apparel, footwear and accessories that target sports enthusiasts, has more than doubled in one year. But despite the advance, many research firms still have a “strong buy” recommendation on the stock. And S&P recently revised its annual target to $93.

    Technically UA has advanced on a series of stair steps, sometimes called “base moves.”? These are very bullish formations that resemble cups. UA reversed up recently following a signal from our proprietary Collins-Bollinger Reversal (CBR) indicator. If the recent pullback to its 50-day moving average (blue line) holds, then the next move up should break the prior high with a target of $85.

    Traders could take risk positions now with a target of $85 to $90. But be careful and use stop-loss orders to protect against a violent reversal, which could drop prices back to support at $62 where this volatile stock could be bought again.

Top 10 Safest Stocks To Invest In Right Now: 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 Stocks 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 Safest Stocks To Invest In Right Now: 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.

Friday, July 19, 2013

Could Huge Shifts in TV Viewing Equal Monster Returns?

Since 2008, the number of hours Americans spend watching some type of media, be it conventional television, streaming media online, or videos on a mobile device, has shot up 23%. In this video, Motley Fool consumer goods analyst Blake Bos says that number is only set to continue upwards, as the baby boomer generation reaches retirement. This is because Americans age 65 and over watch 48% more television than the average viewer. Blake stresses just how much this trend could boost content producers across several media types, and gives investors a few of his picks.

The television landscape is changing quickly, with new entrants like Netflix and Amazon.com disrupting traditional networks. The Motley Fool's new free report "Who Will Own the Future of Television?" details the risks and opportunities in TV. Click here to read the full report!

Best Biotech Companies To Own In Right Now

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, biotechnology company Idenix Pharmaceuticals (NASDAQ: IDIX  ) has received a distressing two-star ranking.

With that in mind, let's take a closer look at Idenix and see what CAPS investors are saying about the stock right now.

Idenix facts

Headquarters

Cambridge, Mass. (1998)

Market Cap

$649.7 million

Industry

Best Biotech Companies To Own In Right Now: Celsion Corporation(CLSN)

Celsion Corporation, an oncology drug development company, develops and commercializes targeted chemotherapeutic oncology drugs based on its proprietary heat-activated liposomal technology. The company is developing its lead product, ThermoDox that is in Phase III clinical trial for primary liver cancer; and in phase II clinical trial for treatment of recurrent chest wall breast cancer. It has a license agreement with Yakult Honsha to commercialize and market ThermoDox for the Japanese market. The company also has a license agreement with Duke University under which it received exclusive rights to commercialize and use Duke's thermo-liposome technology. In addition, Celsion Corporation has a joint research agreement with Royal Phillips Electronics to evaluate the combination of Phillips' high intensity focused ultrasound with its ThermoDox to determine the potential of this combination to treat a range of cancers. The company was founded in 1982 and is based in Columbia, M aryland.

Advisors' Opinion:
  • [By Putnam]

    This is another play on clinical trial progress as a catalyst for higher share prices. This micro-cap stock uses heat-sensitive nano-particles to precisely place cancer-treatment drugs within specific tumors. A number of approaches are currently being tested. The first approach uses its ThermoDox technology in conjunction with radio frequency (RF) ablation for primary liver cancer. ThermoDox is being evaluated under a special protocol assessment with the FDA in a pivotal 600-patient Phase III trial. Results from this study are expected to be released in the next few months.

    Celsion shares weakened in the first quarter, as the company has sold new stock on a pair of occasions to keep the balance sheet healthy. Further equity offerings appear likely, but with positive feedback from the FDA, shares could pop nicely higher before that happens.

Best Biotech Companies To Own In Right Now: 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.

Best Stocks To Watch For 2014: Hemispherx Biopharma Inc (HEB)

Hemispherx Biopharma, Inc. (Hemispherx) is a specialty pharmaceutical company engaged in the clinical development of new drugs therapies based on natural immune system enhancing technologies for the treatment of viral and immune based chronic disorders. Hemispherx focuses on two core pharmaceutical technology platforms Ampligen and Alferon N Injection.The commercial focus for Ampligen includes application as a treatment for Chronic Fatigue Syndrome (CFS) and as an influenza vaccine enhancer (adjuvant) for both therapeutic and preventative vaccine development. Alferon N Injection is a United States Food and Drug Administration (FDA) approved product with an indication for refractory or recurring genital warts. Alferon LDO (Low Dose Oral) is a formulation under development targeting influenza. It has three subsidiaries BioPro Corp., BioAegean Corp., and Core BioTech Corp. The Company's foreign subsidiary is Hemispherx Biopharma Europe N.V./S.A.

Ampligen

Ampligen is an experimental drug, which is undergoing clinical development for the treatment of Myalgic Encephalomyelitis/Chronic Fatigue Syndrome (ME/CFS). Over 1,000 patients have participated in the Ampligen clinical trials representing the administration of more than 90,000 doses of this drug. The Company is also engaged in ongoing, experimental studies assessing the efficacy of Ampligen against influenza viruses.

Alferon N Injection

Alferon N Injection is the registered trademark for the Company's injectable formulation of natural alpha interferon. Interferons are a group of proteins produced and secreted by cells to combat diseases. The Company's natural alpha interferon is produced from human white blood cells. Alferon N Injection [Interferon alfa-n3 (human leukocyte derived)] is a highly purified, natural-source, glycosylated, multi-species alpha interferon product.

Alferon LDO (Low Dose Oral)

Alferon LDO [Low Dose Oral Interferon Alfa-n3 (Human Leukocyte Derived)]! is an experimental low-dose, oral liquid formulation of Natural Alpha Interferon and like Alferon N Injection should not cause antibody formation, which is a problem with recombinant interferon. It is an experimental immunotherapeutic that works by stimulating an immune cascade response in the cells of the mouth and throat, enabling it to bolster systemic immune response through the entire body by absorption through the oral mucosa.

The Company competes with Pfizer, GlaxoSmithKline, Merck, AstraZeneca, Baxter International, Fletcher/CSI, AVANT Immunotherapeutics, AVI BioPharma and Genta.

Best Biotech Companies To Own In Right Now: Vertex Pharmaceuticals Incorporated(VRTX)

Vertex Pharmaceuticals Incorporated engages in discovering, developing, manufacturing, and commercializing small molecule drugs for the treatment of serious diseases worldwide. Its products include telaprevir, a prescription medicine used for the treatment of patients with genotype 1 hepatitis C virus (HCV) infection; and Ivacaftor, a prescription medicine used for the treatment of cystic fibrosis. The company markets its products under the INCIVEK brand name in the United States and Canada; INCIVO brand in the United Kingdom, Germany, France, Sweden, Austria, Finland, Denmark, Switzerland, and Norway; KALYDECO brand in the United States; and TELAVIC brand in Japan. Its drug candidates comprise VX-222, a Phase II clinical trial drug candidate, and ALS-2200 and ALS-2158, a Phase I clinical trial drug candidates that are designed to inhibit the replication of HCV; VX-809 and VX-661, a Phase II clinical trial drug candidates that improve the function of defective cystic fibro sis; VX-509, a Phase II clinical trial drug candidate for the treatment of patients with rheumatoid arthritis and other immune-mediated inflammatory diseases; VX-765, a Phase II clinical trial drug for the treatment of epilepsy; and VX-787, an investigational drug candidate for the treatment of influenza A. The company was founded in 1989 and is headquartered in Cambridge, Massachusetts.

Advisors' Opinion:
  • [By Melly Alazraki]

    Vertex Pharmaceuticals (VRTX)topped the list with a 38.4% return as of Wednesday's close of $48.48. This $9.8 billion market capnon-profitablecompany is all promise. It is itspipelinethat's drawing investors, especially thehepatitis C treatment telaprevirandpotential cystic fibrosis drug VX-770.

    Both diseases present large market opportunities: Liver disease caused by the hepatitis C virusaffects 3.2 million individualsin the U.S. and as many as 100 million people worldwide. Cystic fibrosis is an inherited genetic disease that affects about 30,000 people in the U.S. and has few treatment options.

    Analysts ! have favored the stock, with aconsensus buy recommendation. However, just on Thursday, Vertex announcedtwomore telaprevir studyresultsthat did not impress investors and the stock declined 2% to $47.50. Also, Vertex is not without competitors and is in a race with Merck (MRK) and its experime ntal Hep C drug boceprevir to be the first to reach the market.

    The stock's 52-week high of $52.13 was set on March 7, up from a low of $31.25 set on July 1, 2011.

  • [By Dug]

    Vertex Pharmaceuticals is a discovery and development company focused on small molecule drugs for viral diseases such as Hepatitis C, cancer, autoimmune diseases and more. Their HCV (HepC virus) protease inhibitor drug, Telaprevir, is in Phase III trials, but the company also has a huge pipeline of additional candidates and collaborates with the likes of GlaxoSmithKline and Merck. Vertex shares were worth just under $25 in January 2012, peaked at nearly $35 in July and have held value showing a strong finish at just under $30 in December.

  • [By TheStreet Staff]

    Vertex Pharma's (VRTX ) cystic fibrosis drug Kalydeco will be approved. More importantly, studies testing Kalydeco combined with other Vertex's cystic fibrosis drugs will show strong benefit in a larger swath of patients. Vertex becomes a cystic fibrosis company. Hepatitis C? What's that?

    Correct. Kalydeco was approved in January -- in my opinion, the most important drug approval in 2012. The Kalydeco-VX-809 combination study was successful, even though the Street is still debating the magnitude of the regimen's benefit to cystic fibrosis patients

Thursday, July 18, 2013

New Navy Drone Flubs 2 More Landing Attempts

Maybe Northrop Grumman (NYSE: NOC  ) should have quit while it was ahead.

Last week, on July 10, the defense contractor made history when its X-47B prototype robotic fighter jet executed a flawless landing aboard the nuclear aircraft carrier USS George H.W. Bush off the Virginia coast. Turns out, the Navy thought the landing went so nice, they'd try it twice -- so the X-47B took off and landed on the Bush again. And that's where things went wrong.

Perhaps feeling their oats, the Navy then decided to try going 3-for-3 with the test jet, designated "Salty Dog 502." So off the plane took, circled, and tried to land a third and final time -- but this time the plane detected a "navigation computer anomaly," aborted the carrier landing, and went back to shore to land at Wallops Island Air Field in Virginia.

Five days later, the Navy tried to get another Northrop X-47B, this one dubbed "Salty Dog 501," to put itself down on deck. Unfortunately, this attempt, too, failed. Navy officials blamed "a minor test instrumentation issue" for the scrubbed landing.

Result: The Navy, and Northrop, turned a record of 2-for-2 successful landings into 2-for-4.

Wednesday, July 17, 2013

How Honeywell Earnings Could Send Shares to New Record Highs

Honeywell (NYSE: HON  ) will release its quarterly report on Friday, as the company seeks to prove that the optimism that investors have shown in bidding shares to all-time highs is justified. With promising conditions for many of its business segments, Honeywell earnings have the capacity to grow substantially both now and for years to come.

Honeywell makes a variety of products, ranging from aircraft engines, communications, safety, and lighting systems for planes of all sizes to environmental controls and brake systems for commercial and passenger vehicles. All of those areas have seen recent strength, and the company is doing its best to capitalize on its opportunity in all of them. Let's take an early look at what's been happening with Honeywell over the past quarter and what we're likely to see in its quarterly report.

Stats on Honeywell

Analyst EPS Estimate

$1.21

Change From Year-Ago EPS

6.1%

Revenue Estimate

$9.70 billion

Change From Year-Ago Revenue

2.8%

Earnings Beats in Past Four Quarters

4

Source: Yahoo! Finance.

How Honeywell earnings are vital to the stock's future
Analysts have had mixed views about Honeywell earnings in recent months, cutting a penny per share from their June-quarter estimates but adding that penny to their full-year 2013 expectations. The stock, though, has been unequivocally positive, rising 11% since mid-April.

Honeywell got the quarter started with strong results in its April earnings report, managing to boost its earnings by 17% despite sporting only the tiniest of revenue gains. More optimistically, the company increased its earnings guidance for the year, hiking the lower end of its previous range by a nickel per share, although it cut its sales expectations by $200 million, or about half a percent.

Yet the company continues to face macroeconomic uncertainties. Rival Johnson Controls (NYSE: JCI  ) reported extreme weakness in Europe in the first quarter, as automakers there have seen poor vehicle sales and generally weak industrial activity contribute to sluggish earnings growth. Honeywell has done its best to restructure its operations to turn its attention to higher-growth markets, but Europe could continue to hold back Honeywell from its full potential.

Arguably the biggest opportunity Honeywell has is in the aerospace industry. Boeing (NYSE: BA  ) expects industrywide demand for 35,000 aircraft over the next two decades, translating to revenue of $4.8 trillion. As a major supplier to Boeing and other aircraft manufacturers, Honeywell should be able to get its share of that pie.

Honeywell is also looking for growth beyond aerospace. In June, the company completed its acquisition of RAE Systems, which specializes in making systems and software to help detect gases and radiation. The move will boost Honeywell's existing lines of hand-held sensors and detection devices and help it serve its government, corporate, and public-safety clients with more comprehensive offerings.

In the Honeywell earnings report, look for management to comment on the recent investigation of a fire in a Boeing 787 Dreamliner aircraft. Investigators are looking at a Honeywell emergency-locator transmitter as a potential source of last week's fire, and given the notoriety of the Dreamliner's recent woes, any news will get a lot of attention. In the long run, though, Honeywell appears poised to keep growing no matter what comes of the investigation.

Manufacturing is going through a huge change, with technological advances potentially transforming the way everything from simple consumer goods to sophisticated system components are made. Read all about the biggest industry disruptor since the personal computer in our latest free report, "3 Stocks to Own for the New Industrial Revolution". Just click here to learn more.

Click here to add Honeywell to My Watchlist, which can find all of our Foolish analysis on it and all your other stocks.

The Wonderful Stock of Disney

My relationship with this 90-plus-year powerhouse began in the '90s with Toy Story and 101 Dalmatians, and has continued more recently with the releases of Iron Man 3 and Monsters University. The Walt Disney  (NYSE: DIS  )  empire has consistently been producing blockbuster films throughout my entire life. Disney's ubiquitous presence is not limited to solely the big screen; its involvement in television, electronics, and theme parks as well establishes the company as the go-to media content provider, and has solidified it as No. 66 on the most recent Fortune 500 list. As we pass the halfway point of the year, let's take a look at how Disney has done in the first six months of 2013, and how I think it will do in the following years.

As the No. 3 highest-grossing movie distributor in 2012, releasing 18 films and generating more than 1.5 billion domestically in revenue, Disney's appeal to all ages generates it a market share of over 14%. After its Marvel acquisition in 2009, Disney widened its audience viewer age range, with the likes of The Avengers, which generated more than $620 million in the U.S. alone. On May 3, Disney released Marvel's Iron Man 3, which has generated $406 million domestically. And in mere weeks since its release on June 21, Monsters University has generated over $400 million at the box office, $184.4 million from overseas. Though things appear to be going extremely well, there have been minor setbacks in the success of some of Disney's movies. Disney's release of The Lone Ranger flopped, taking in a mere $48.7 million domestically, while Despicable Me 2, released by Comcast's Universal, generated $141 million within a week. 

Despite the failure of The Lone Ranger, looking ahead, Disney has a strong pipeline of blockbuster sequels that the company plans on releasing in subsequent years, such as Finding Dory, the sequel to the highly successful Finding Nemo, in 2015 and Star Wars Episode VII, also in 2015, which analysts predict to gross $1.2 billion.

While Disney has proven itself time and time again in the movie business, its foray into the video game market has yet to live up to the success that accompanies its name. Disney's video game business model has always been that a recognizable character base takes precedence over any other gaming aspect, such as game play interface, graphics, or plot line. Whereas Disney previously marketed to the teenage demographic with the likes of Kingdom Hearts, its most recent focus is the preteen and younger age classification with the company's newest product, Disney Infinity. With Disney Infinity,  the consumer purchases toys that are then synthesized with the video game on any recent-generation console. The first-generation character base includes various Disney characters from its newest releases, such as from The Lone Ranger, The Incredibles, Monsters University, and Cars 2. Disney Infinity will be released in August, and hopes to rival the likes of the $1 billion industry of Activision Blizzard's (NASDAQ: ATVI  )  Skylanders, which has more or less the same structure as Disney Infinity but without the famous characters Disney brings to the table. Investors should keep in mind that Skylanders has been in existence for the past two years, and has a strong marketing campaign; Activision Blizzard, moreover, may have already captured the majority of the market share in this field. You can read more of my analysis of the Skylanders versus Disney Infinity debate in my most recent article.  Although the success of Skylanders could hold back Disney initially, the popularity of Disney's movies only helps to market the physical toys that are essential to the game.

Source: Infinity.Disney.com.

Growing up in the Washington, D.C., area and traveling the interstate highway, better known as the Beltway, up until the age of about 7, I was convinced that the Mormon Temple was in fact the famous castle that is trademark to the one and only Disney World. I later learned, disappointingly, that I lived almost 800 miles from the world's most visited theme park, which had more than 17 million visitors in 2012.  And what was the second-most-visited theme park in the world? Disneyland in California, which had more than 15 million visitors in 2012. How about the next six most-visited theme parks? All owned by Disney. According to its 2012 annual report, Disney generated $12.9 billion in revenue from Parks and Resorts, up 10% from the previous year. As for 2013, things are looking even better. The percentage of visitors to Disney's domestic parks rose 7% in its second quarter. As for the number of visitors this summer, a recent TripAdvisor survey indicated that 86% of respondents are planning a leisure trip this summer, which is up 7% compared to last year's travelers.  With the success of all the Disney-related parks, and the projected summer traveling, Disney's parks and resorts revenue will only grow.

Through its blockbuster pictures, expanding presence in the video game industry, and dominance in the Parks and Resorts field, Disney is a company that I see prospering in the near, and far, future. If you don't take my inexperienced advice, listen to fellow Fools Tim Beyers' and Jon Friedman's takes on Disney.

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