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Why Do Airlines Hedge Fuel Costs?

Most airlines in the U.S. today hedge fuel costs in a systematic fashion. Each quarter, they open new hedge positions in future quarters, with earlier periods tending to be more heavily hedged than periods further in the future.

If you asked airline executives why they hedge fuel, they would almost all say that since they sell most of their tickets several months in advance, they need to lock in some of their fuel costs in advance, too. However, most airlines hedge fuel one to two years out. Thus, they are hedging far beyond what is necessary to cover previously sold tickets. Most executives would probably claim that they do this in order to mitigate their risk, since it's difficult to pass fuel prices through to customers immediately.

This fuel-hedging strategy has questionable utility over the long term. Airlines that follow this practice are locking in some of their future fuel consumption each month, and so over time these companies' fuel costs are tied to the market price just as they would be if they did not hedge at all. The only difference is one of timing; hedging programs tend to smooth out the cost of fuel over time.

However, systematic hedging programs have very clear costs. Oil prices tend to be quite volatile, leading to high hedging premiums. Moreover, the relationship between oil prices and jet fuel is not constant, creating a risk that fuel hedges will be "ineffective". As a result, from a long-term investor's perspective, hedging fuel costs does not make very much sense. Over a typical economic cycle, hedging losses will tend to outweigh hedging gains.

Swimming against the tide
Alone among legacy carriers, US Airways (NYSE: LCC  ) abandoned its fuel-hedging program after the Great Recession. The company determined that the cost of hedging premiums was excessive.

Moreover, by locking in fuel prices through collars, swaps, forward price contracts, or similar hedging instruments, airlines lock in a minimum fuel price as well as a maximum price. In the event of a sudden economic shock -- something like the Great Recession -- the airline would face low demand, but fuel prices would be locked in at an above-market price by the hedges. In other words, hedges provide the least protection in the most dangerous economic environment.

The move away from fuel hedging has worked out well for US Airways -- despite the fact that oil prices have risen dramatically from 2009 to today. Since 2010, US Airways has paid a lower average fuel price compared to each of the four largest airlines in the country -- AMR (NASDAQOTH: AAMRQ  ) , Delta Air Lines (NYSE: DAL  ) , Southwest Airlines (NYSE: LUV  ) , and United Continental (NYSE: UAL  ) -- all of which use fuel hedges extensively.

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Airline yearly average fuel prices (2010-present):

Year

American

Delta

Southwest

United Continental

US Airways

2010

$2.316

$2.32

$2.36

$2.34

$2.25

2011

$3.013

$3.01

$3.18

$3.079

$3.11

2012

$3.201

$3.25

$3.28

$3.272

$3.17

2013 (YTD)

$3.140

$3.13

$3.17

$3.145

$3.07

Average

$2.89

$2.90

$2.97

$2.93

$2.88

Source: Airline annual 10-K reports 

In 2011, when fuel prices skyrocketed due to strong demand and fears about the Arab Spring, US Airways paid slightly more for fuel than most of its competitors. However, this has been balanced out by lower fuel bills in every other year, when competitors' hedge premiums went to waste.

Over the full period, US Airways has saved anywhere from $0.01 per gallon (compared to AMR), to $0.09 per gallon (compared to Southwest). In a declining fuel price environment, US Airways would have shown an even bigger advantage. Since the major airlines use billions of gallons of jet fuel each year, they are potentially losing tens or even hundreds of millions of dollars annually from hedging.

Back to square one
Over the past several years, US Airways has shown quite convincingly that the costs of fuel hedging outweigh the benefits. Even in a rising fuel price environment -- when hedging should offer the most benefits -- US Airways has still paid less than competitors for fuel, on average. So why do most of US Airways' competitors continue to hedge?

The real reason is most likely that executives want to increase the predictability of earnings. By hedging, airlines restrain their profit growth when fuel prices drop while mitigating the drag of fuel price increases. Airline executives look better to shareholders in the short-run if they can make earnings relatively predictable.

However, hedging costs are significant over time. For long-term investors, having a higher long-term earnings stream should be more important than artificially keeping earnings steady from year to year, as long as a company can maintain comfortable liquidity throughout the business cycle. (Major airlines tend to hold billions of dollars in cash, so this shouldn't be a major issue.) Unfortunately, only US Airways is really looking out for long-term investors' interests when it comes to fuel hedging.

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Is Netflix Shortchanging Its Subscribers?

File this one under "You can't please all of the people all of the time." After years of catching flak from Wall Street for spending too much on content, Netflix (NASDAQ: NFLX  ) is now facing questions about spending too little.

In fact, the question that opened this week's earnings release call was from an analyst who asked, "How do you think about the risk of allowing domestic margins to rise too quickly, for example [in] attracting more competition or underinvesting in future growth?"

That's right, there's at least one Wall Street firm out there that's worried about a company's profits rising too quickly.

But the question actually raises a good point. Netflix's streaming margins in the U.S. have grown much faster than even the company expected.

Source: Netflix financial filings.

That's one big benefit of having your subscriber base grow faster than your expenses do. Still, that pace of profit expansion is twice the 1%-per-quarter growth that management has targeted.

And it's true that those kinds of profits will attract plenty of competition. Coinstar (NASDAQ: CSTR  ) and Verizon's (NYSE: VZ  ) new Redbox Instant service pairs DVD rentals with online video, and it just started taking paying subscribers. Verizon sees the project as having the potential to boost profits starting next year.

Other streaming rivals like Amazon.com (NASDAQ: AMZN  ) and Hulu have been bidding so aggressively for content that they've driven up prices for streaming titles, according to Netflix CEO Reed Hastings. Amazon isn't planning on slowing down on that pace, either. CEO Jeff Bezos just told shareholders that the company's "heavy investments" in digital media are a key part of its long-term strategy to improve the customer experience.

As for the risk to future growth, that's also worth worrying about. After all, the big reason that Netflix's membership additions have been so strong is that the company has spent billions to beef up its library. Netflix doesn't want to kill that virtuous cycle by passing on popular but expensive content just to boost short-term profits.

But I don't see Netflix falling into that trap. Instead, it just looks like the company's push into original content like House of Cards has made the service more engaging for existing members, and an easier sell to new ones.

Netflix hasn't slowed the pace of fresh content deals, having recently spent hundreds of millions on titles from Disney, Hasbro, and DreamWorks. And there are plenty more exclusive, original series in the works for this year and next. As long as those major deals keep coming, there's no reason both subscribers and shareholders can't be happy with Netflix's content investments.

Don't get shortchanged
The tumultuous performance of Netflix shares since the summer of 2011 has caused headaches for many devoted shareholders. While the company's first-mover status is often viewed as a competitive advantage, the opportunities in streaming media have brought some new, deep-pocketed rivals looking for their piece of a growing pie. Can Netflix fend off this burgeoning competition, and will its international growth aspirations really pay off? These are must-know issues for investors, which is why The Motley Fool has released a premium report on Netflix. Inside, you'll learn about the key opportunities and risks facing the company, as well as reasons to buy or sell the stock. The report includes a full year of updates to cover critical new developments, so make sure to click here and claim a copy today.

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10 Best Tech Stocks To Watch Right Now

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3D Systems is at the leading edge of a disruptive technological revolution, with the broadest portfolio of 3-D printers in the industry. However, despite years of earnings growth, 3D Systems' share price has risen even faster, and today the company sports a dizzying valuation. To help investors decide whether the future of additive manufacturing is bright enough to justify the lofty price tag on the company's shares, The Motley Fool has compiled a premium research report on whether 3D Systems is a buy right now. In our report, we take a close look at 3D Systems' opportunities, risks, and critical factors for growth. You'll also find reasons to buy or sell the stock today. To start reading, simply click here now for instant access.

10 Best Tech Stocks To Watch Right Now: Lionbridge Technologies Inc.(LIOX)

Lionbridge Technologies, Inc. provides language, development, and testing services. Its Global Language and Content segment provides product localization services, such as creating foreign language versions of its clients? products and software applications, including the user interface, online help systems, and documentation; and content translation services, such as translating and maintaining clients? Web-based content, eLearning courseware and training materials, technical support, and sales and marketing information. It also offers technical authoring, eLearning courseware development, and production and integration of content; and global language and content services delivery. The company?s Global Development and Testing segment develops and maintains on-premise, SaaS, and smart phone and tablet applications, as well as provides Web production services. This segment also offers various testing services under the VeriTest brand, including managed test teams, test proc ess design, test automation, functional testing, performance testing, globalization testing, and product certification. In addition, it provides specialized search relevance, online content editorial, keyword optimization, and related services. Its Interpretation segment offers interpretation services for government business and healthcare organizations that require experienced linguists to facilitate communication. It provides interpretation communication services, such as onsite interpretation, over-the-phone interpretation and interpreter testing, training, and assessment services in approximately 360 languages and dialects. The company serves the technology, mobile and telecommunications, Internet and media, life sciences, government, manufacturing, automotive, retail, and aerospace sectors in the Americas, Europe, and Asia. Lionbridge Technologies, Inc. was founded in 1996 and is headquartered in Waltham, Massachusetts.

Advisors' Opinion:

• [By Vodicka]

  Lionbridge Technologies (NASDAQ: LIOX) provides language, development and testing services to businesses all over the world. Its focus is on technology, and it helps its clients manage their enterprise content and technology applications, and supports those efforts with training materials, as well as sales and marketing information. By affecting optimal communication in local languages, it helps its clients capture market share, escalate adoption of their global content and products, increase the return on their enterprise application investments and boost workforce productivity. All while reducing costs! So it’s no wonder that the 10 largest software companies and the five largest Internet portals in the world use LIOX to help them internationalize their products and services.

  This strong customer base helped the company weather the recession, as its top 10 customers expanded their business by more than 8% in the fourth quarter over the third quarter. This helped the company generate $11.7 million in cash flow, improve its gross profit to 33.5% and revenues grow 7% quarter over quarter. That’s definitely a great sign, especially since technology spending is taking flight, and globalization of industry is in a rapid phase of expansion. Buy LIOX under $4.50.

10 Best Tech Stocks To Watch Right Now: Astea International Inc.(ATEA)

Astea International Inc. develops, markets, and supports service management software solutions worldwide. The company licenses its solutions to various companies that sell and service equipment, and/or sell and deliver professional services. It offers Astea Alliance suite that includes series of applications to address lead generation, project quotation, service and billing, and asset retirement services. Astea International Inc. integrates and optimizes business processes for campaigns, call center, depot repair, field service, logistics, projects, and sales and order processing applications; provides mobile, dynamic scheduling, portals, and business intelligence solutions; and offers infrastructure tools and services. It also provides FieldCentrix Enterprise suite, a service management solution that runs on various mobile devices, such as handheld computers, laptops and PCs, and pocket PC devices, as well as integrates with CRM and ERP applications; and features a Web-ba sed customer self-service portal, workforce optimization capabilities, and equipment-centric functionality. In addition, the company offers consulting, implementation, training, and maintenance services. Its solutions are used in information technology, medical devices and diagnostic systems, industrial controls and instrumentation, retail systems, office automation, imaging systems, facilities management, telecommunications, and other industries with equipment sales and service requirements. Astea International Inc. markets its products through a network of direct and indirect sales and services offices; and through distributors consisting of value-added resellers, system integrators, and sales agents, as well as original equipment manufacturer partners. The company was formerly known as Applied System Technologies, Inc. and changed its name to Astea International Inc. in 1992. Astea International Inc. was founded in 1979 and is headquartered in Horsham, Pennsylvania.

Top Value Companies To Invest In Right Now: LRAD Corporation(LRAD)

LRAD Corporation engages in the design, development, and commercialization of directed sound technologies and products in North America, Europe, the Middle East, and Asia. The company develops and delivers directed acoustic products that beam, focus, and control sound over short and long distances. It offers Long Range Acoustic Device, which creates directed acoustic beam to communicate at operational ranges in high ambient noise environments, primarily for military applications. The company also provides SoundSaber thin film magnetic speaker technology that provides high clarity throughout the audio range for emergency and mass notification, public address, and other sound applications. Its SoundSaber hardened panels are used in acoustic environments, such as hangar bays, industrial buildings, airports, and other facilities. LRAD Corporation sells its products directly to government, military, large end-users, and defense-related companies. The company was formerly known as American Technology Corporation and changed its name to LRAD Corporation in March 2010. LRAD Corporation was founded in 1980 and is based in San Diego, California.

10 Best Tech Stocks To Watch Right Now: Geeknet Inc.(GKNT)

Geeknet, Inc. operates an online network for the global geek community comprising technology professionals, technology enthusiasts, and general consumers of technology-oriented goods, services, and media. The company operates through two segments, e-Commerce and Media. The e-Commerce segment sells geek-themed retail products for technology enthusiasts and general consumers through the ThinkGeek.com Web site. The Media segment provides Web properties that serve as platforms for the creation, review, and distribution of online peer produced content. It owns and operates a network of Websites, including SourceForge, Slashdot, and Freecode, which enable technology professionals and enthusiasts to create, improve, compare, and distribute open source software, and to debate and discuss current issues relating to the technology. The company markets its e-Commerce products through its online Website; and media products through its direct sales force and representatives in the Unit ed States, Europe, Asia, and Australia. The company was formerly known as SourceForge, Inc. and changed its name to Geeknet, Inc. in November 2009. Geeknet, Inc. was founded in 1993 and is headquartered in Fairfax, Virginia.

10 Best Tech Stocks To Watch Right Now: Jds Uniphase Canad Exchangeable(JDU.TO)

JDS Uniphase Corporation provides communications test and measurement solutions, and optical products for telecommunications service providers, wireless operators, cable operators, network-equipment manufacturers, and enterprises worldwide. The company?s Communications Test and Measurement segment supplies instruments, software, and services to enable the design, deployment, and maintenance of communication equipment and networks. Its product portfolio consists of test tools, platforms, software, and services for wireless and fixed networks. The company?s Communications and Commercial Optical Products segment offers components, modules, subsystems, and solutions that are used by communications equipment providers for telecommunications and enterprise data communications. This segment?s products comprise transmitters, receivers, amplifiers, ROADMs, optical transceivers, multiplexers and demultiplexers, switches, optical-performance monitors and couplers, splitters, and c irculators, which enable the transmission of video, audio, and text data through fiber-optic cables. It also provides various laser products, including diode, direct-diode, diode-pumped solid-state, fiber, and gas lasers for micromachining, materials processing, bioinstrumentation, consumer electronics, graphics, medical/dental, and optical pumping; and photovoltaic products, such as concentrated photovoltaic cells and receivers for generating energy from sunlight, as well as fiber optic-based systems for delivering and measuring electrical power. The company?s Advanced Optical Technologies segment offers optical solutions for security and brand-differentiation applications; and thin film coatings for a range of public and private-sector markets. This segment also provides multilayer product-security solutions that deliver overt, covert, forensic, and digital product and document verification. JDS Uniphase Corporation was founded in 1979 and is headquartered in Milpitas, Ca lifornia.

10 Best Tech Stocks To Watch Right Now: Accelrys Inc.(ACCL)

Accelrys, Inc. develops and commercializes scientific business intelligence software and solutions in the United States, Europe, and the Asia Pacific. The company offers Pipeline Pilot, Accelrys enterprise R&D platform, which allows users to aggregate, integrate, and mine structured and unstructured scientific data, such as chemical structures, biological sequences, and complex digital images; and filters, normalizes, and performs statistical analysis on the scientific data and provides visual reports to scientists and scientific managers. It also provides computer aided design modeling and simulation software that allows scientists to perform computations of chemical, biological, and materials properties to simulate, visualize, and analyze chemical and biological systems, as well as communicate the results to other scientists; and data management and informatics software to capture, store, manage, and mine scientific data information. In addition, the company offers Enter prise Lab Notebook, which provides a digital environment to plan, execute, record, store, back-up, and share daily research activities; lab execution systems; and content databases to support research activities through a collection of factual databases and reference works. Further, it provides software wrappers that allows customers to run their own algorithms on the company?s R&D platform; enterprise-wide informatics systems, which integrate customers? internal systems with software from various vendors; contract research services; onsite training and implementation, Web-based training, and data migration services; and support services. The company serves pharmaceutical, biotechnology, agricultural, energy, chemicals, aerospace, consumer packaged goods, and industrial product industries, as well as government and academic entities through direct sales force, telesales, and distributors. Accelrys, Inc. was founded in 1993 and is headquartered in San Diego, California.

10 Best Tech Stocks To Watch Right Now: Northamber(NAR.L)

Northamber plc engages in the distribution of information technology equipment in the United Kingdom. It supplies computer hardware, computer printers and peripheral products, computer telephony products, and other electronic transmission equipment. The company?s products include desktops and servers, portable computing devices, storage and memory products, monitors and projectors, printers and scanners, networking equipment, audio visual products, and personal computer build products, as well as software solutions. Northamber plc is headquartered in Chessington, the United Kingdom.

10 Best Tech Stocks To Watch Right Now: Ecs Holdings Limited (E18.SI)

ECS Holdings Limited, an investment holding company, engages in the distribution of information and communications technology products and services. The company�s Enterprise Systems segment offers enterprise systems tools, including middleware, operating systems, Unix/NT servers, databases, storage, and security products for information technology (IT) infrastructure. Its IT Services segment is involved in the IT infrastructure design and implementation, training, maintenance, and support services. The company�s Distribution segment distributes IT products, such as desktop PCs, notebooks, handhelds, and printers for the commercial and consumer markets. It also engages in the retail of IT products and equipment, and accessories. ECS Holdings Limited distributes its products in Singapore, China, Thailand, Malaysia, Indonesia, and the Philippines. The company was founded in 1985 and is based in Singapore. ECS Holdings Limited is a subsidiary of VST Holdings Limited.

10 Best Tech Stocks To Watch Right Now: Unisys Corporation (UIS)

Unisys Corporation provides information technology (IT) services, software, and technology that solve mission-critical problems for clients worldwide. It operates in two segments, Services and Technology. The Services segment provides outsourcing services, including management of customers� data centers, computer servers, and end-user computing environments, as well as specific business processes; systems integration and consulting services, such as assessing the security and cost effectiveness of clients� IT systems and enabling them to design, integrate, and modernize mission-critical applications; infrastructure services consisting of design, warranty, and support services for its customers� IT infrastructure, such as networks, desktops, servers, and mobile and wireless devices; and maintenance services. The Technology segment designs and develops servers and related products consisting of enterprise-class servers, which comprise the ClearPath family of servers and t he ES7000 family of Intel-based servers, as well as operating system software and middleware; and provides data center, infrastructure management, and cloud computing offerings for clients to virtualize and automate their data-center environments. The company serves public sector; financial services; and other commercial markets comprising communications and transportation. Unisys Corporation markets its products and services primarily through direct sales force, as well as through distributors and alliance partners. Unisys Corporation was founded in 1886 and is headquartered in Blue Bell, Pennsylvania.

10 Best Tech Stocks To Watch Right Now: PHAZAR CORP(ANTP)

PHAZAR CORP, through its subsidiaries, engages in the design, manufacture, and marketing of antennas, wireless mesh network solutions, guyed and self supported towers, support structures, masts, and communication accessories worldwide. Its products include military mesh radio wireless networking systems, ground to air collinear antennas, instrument landing antennas and towers, fixed system multi-port antenna arrays, tactical quick erect antennas and masts, shipboard antenna tilting devices, surveillance antennas, antenna rotators, positioners and controls, and high power broadcast baluns. The company also offers commercial products, such as panel, sector, omnidirectional, and distributed antenna systems; antennas for the cellular and wireless markets, paging and yagi antennas, guyed towers and self supported towers, and commercial mesh radio systems. It primarily serves the United States government, military and civil agencies, the United States government prime contractor s, and commercial clients. The company was founded in 1972 and is based in Mineral Wells, Texas.

Today in History: Central Banks, Trans-Atlantic Telegraphs, and Bugs Bunny

On this day in economic and business history ...

The Bank of England was established by royal decree on July 27, 1694. Formally known as the Corporation of the Governor and Company of the Bank of England, it was only the second central bank to be established anywhere in the world (Sweden's was established in 1668), and it soon became the model for central banks everywhere.

Established to fund England's revival after a crushing series of naval defeats at French hands, the Bank of England is the third-oldest continuously operating bank in the United Kingdom, and by far the most important. The bank also helped to underwrite English industrialization in the 18th and 19th centuries through debt issuance and loans. It has also historically served as the nation's chief store of gold reserves, which led to its enshrinement as issuer of the national currency when the currency was linked to gold in 1844. Today, it is the only bank with authority to issue bank notes in England, and it regulates the issuance of currency elsewhere in the United Kingdom. The bank also serves in much the same way as the United States Federal Reserve, as it is tasked with maintaining stable rates of inflation while engaging in other economically beneficial monetary policies.

As important as it might be, language buffs and fiscal historians alike might have a difficult time plowing through the bank's formative charter. Despite comprising only two pages of modern size, this document might just contain one of the longest opening sentences ever committed to paper in the English language. By this writer's calculation, that first sentence contains more than 600 words.

What's up, Doc?
Bugs Bunny made his debut on July 27, 1940, in the animated Warner Bros. short A Wild Hare. The cartoon rabbit soon became Warner's (now Time Warner (NYSE: TWX  ) ) answer to Mickey Mouse -- and like Mickey, Bugs came out of the gate strong, as this short earned Warner an Academy Award nomination. Since his debut, Bugs has gone on to become the cartoon world's most enduring icon, appearing in more films of any length  than any other animated character. Hollywood has since rewarded Bugs with only the second star ever given to an animated character (after Mickey, of course), and the wisecracking rabbit continues to serve as Warner's mascot.

A spark across the Atlantic
The first permanent trans-Atlantic telegraph cable was completed on July 27, 1866, linking Newfoundland and Ireland with 1,600 miles of wire. It was the first time in the history of the world (with one small caveat) that two people, standing an ocean apart, might communicate nearly instantaneously rather than over the span of days or weeks.

Although it was completed only five years after the first transcontinental telegraph line in the United States, the trans-Atlantic telegraph line had been on the drawing board for far longer. Western Union (NYSE: WU  ) built the transcontinental telegraph in less than a year, taking advantage of extant lines, but trans-Atlantic cable-laying efforts had been stymied twice in the 1850s before the effort was nearly derailed by the American Civil War.

A trans-Atlantic line was built and successfully transmitted messages for a few days in 1858 before succumbing to corrosive damage in the Atlantic. That project's developer, Cyrus Field, would return to his dream after the war with a better cable design in 1866, and this one would hold up until 1872. By then, newer cables were already in the works. Field's company, the Anglo-American Telegraph Company, laid down four more trans-Atlantic cables from 1873 to 1912, when its assets were leased by the far stronger Western Union. This arrangement continued until 1963, by which point modern telecommunications cables -- in service beneath the Atlantic since the late 1950s -- had rendered the old lines obsolete.

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Why Activision Blizzard Shares Soared

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 video game publisher Activision Blizzard (NASDAQ: ATVI  ) surged 13% today after announcing an $8.2 billion deal to split from parent company Vivendi. 

So what: Activision is buying the stake from Vivendi at a 10% discount -- $13.60 per share -- to its closing price on Thursday, suggesting that the Call of Duty and World of Warcraft purveyor is getting a pretty sweet deal to gain back its freedom. The Vivendi sale will reduce its holdings from 61.1% of Activision's common shares to just 12%, triggering optimism that the deal will allow Activision to finally unleash some of its seemingly pent-up entrepreneurial creativity.

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Now what: The deal is expected to close by the end of September 2013, subject to standard closing conditions. "We should emerge even stronger -- an independent company with a best-in-class franchise portfolio and the focus and flexibility to drive long-term shareholder value and expand our leadership position as one of the world's most important entertainment companies," said Activision CEO Bobby Kotick. So while I wouldn't usually touch such a hot stock, today's pop might just be the start for the suddenly nimble, flexible, and independent Activision.

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.

Get Ready for More Volatility

Nothing happens during the trading day anymore.

 

Over the past few weeks, all the action in the stock market has occurred on the opening bell – or shortly thereafter. Then stocks spend the rest of each day locked in a tight trading range.

 

Traders used to worry about stepping away from their desks – even for just a few minutes to go to the bathroom – out of fear of missing a trade. Now we can take a nap... go for an extended lunch... or even play a round of golf and not miss anything.

 

Volatility, it seems, has died.

 

We're not sure why, of course. Maybe the market's one-way run higher this year has lulled investors into such a sense of complacency, they no longer care to do anything while the market is open for trading. Or perhaps the folks in charge of the high-frequency trading programs are under strict orders not to let the market wander too freely during the day.

 

Whatever the reason... things sure are quiet these days.

 

Too quiet.

 

There are few "absolutes" when it comes to the stock market. But one thing we do know is periods of low volatility are ALWAYS followed by periods of high volatility. And by the look of the following chart, we may be headed for one of those higher-volatility periods soon...

 

This is a 60-minute chart of the Volatility Index (the "VIX"). It gives a better picture of the intraday volatility than the daily chart does...

 

 

You can see how volatility spiked higher at about this time last month. The VIX ran above 18 and has been trending lower ever since. Now, the chart has traced out a consolidating-triangle formation. And the VIX is currently trading just above the support line of the triangle.

 

Notice also the positive divergence on the MACD momentum indicator (the bottom box in the chart above). While the VIX has been moving lower, the MACD indicator has been trending higher. This positive divergence often serves as an early warning sign of a change in trend.

 

So with the VIX at support... with the MACD indicator trending higher... and with investors in general feeling comfortable with the market... now seems like a good time for volatility to rise from the dead.

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Best regards and good trading,

 

Jeff Clark

Why Active Management Isn't as Dumb as You Think

Millions of investors have learned that if you can't beat the market indexes, you're better off joining them. The popularity of passive investment strategies has exploded higher with the rise of exchange-traded funds, most of which use formulaic criteria to choose their stock holdings rather than qualitative analysis.

Yet as valuable as low-cost index funds can be, some investors are too quick to dismiss all actively managed mutual funds as being a waste of money. In particular, if you focus too much on short-term results to justify abandoning active investing strategies, you could end up making the same mistakes as short-term traders who move in and out of stocks too quickly to capture the lion's share of their long-term gains.

Active managers fall short -- again
S&P Dow Jones Indices recently did a study looking at the results of actively managed stock mutual funds. In particular, it looked at more than 700 mutual funds that finished in the top 25% in terms of one-year performance as of March 2011. After two years, fewer than 5% of those 700 funds managed to stay in the top 25% during each of the ensuing two 12-month periods.

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Moreover, when S&P expanded the test to include managers in the top half, it produced similar results: Just 18% of funds in the top half by performance in 2011 managed to repeat those top-half returns in both 2012 and 2013. Looking back a longer period, only 2% to 5% of funds in various sub-asset classes managed to stay in the top half of performers for five consecutive years. Those figures are less even than a random distribution would predict, strongly suggesting that good performance in one period is more likely to be followed by worse performance in the next.

The wrong reason to go passive
Yet judging mutual funds based on streaks of short-term performance is exactly the wrong way to evaluate a long-term fund's holdings. If you're committed to an investment strategy for the long haul, then occasional one-year underperformance shouldn't amount to anything.

Perhaps the best example of this phenomenon lately comes from Bruce Berkowitz, manager of the Fairholme Fund (NASDAQMUTFUND: FAIRX  ) . In 2011, Berkowitz was coming off three straight years of having been among the top 10% of fund managers in the large-cap value category, earning himself an award as Morningstar's Fund Manager of the Decade for stocks. Yet in 2011, he made big bets on financial stocks that turned out to be far too early. Investments in Bank of America (NYSE: BAC  ) , mortgage- and bond-insurance company MBIA (NYSE: MBI  ) , and insurer juggernaut AIG (NYSE: AIG  ) didn't pan out as quickly as he'd hoped, and investors suffered 32% losses for the year while the S&P posted modest 2% gains. Investors fled the fund in droves, sending assets under management plunging.

Yet by 2012, Bank of America had recovered, doubling in value with help from capital financing courtesy of Warren Buffett and rising prospects in the banking sector. Meanwhile, AIG continued its strategy of divesting non-core assets and getting out from under government control. Fairholme's return more than doubled the S&P in 2012. More recently, MBIA's settlement with Bank of America sent shares soaring, allowing Berkowitz to sell out at a large profit.

Admittedly, 2011's massive underperformance did a lot to undermine Fairholme's longer-term track record. The fund's five-year performance now just barely beats out the average for the category. Yet with the rule applying even in an extreme situation, you can more easily see how a fund that just pokes down into the bottom half in performance one year could still put together an impressive track record over time.

Be careful, but don't panic
One thing is true: Higher-cost mutual funds have a greater burden to overcome in producing after-cost returns for their shareholders. That's why in the long run, many index funds beat out actively managed funds. But if you decide passive investing is for you, make sure you do it for the right reasons -- not just because a fund you own didn't manage to top the performance list every single year you owned it.

Whether you choose an actively managed fund or an index ETF, it's more important than ever to start investing right now. That's why we've brought you a brand-new special report, "Your Essential Guide to Start Investing Today." Inside, the Motley Fool's personal finance experts show you why investing is so important and what you need to do to get started. Click here to get your copy today -- it's absolutely free.

Tune in every Monday and Wednesday for Dan's columns on retirement, investing, and personal finance. You can follow him on Twitter @DanCaplinger.

5 Best Gold Stocks To Invest In 2014

Just as we examine companies each week that may be rising past their fair value, we can also find companies potentially trading at bargain prices. While many investors would rather have nothing to do with companies tipping the scales at 52-week lows, I think it makes a lot of sense to determine whether the market has overreacted to the downside, just as we often do when the market reacts to the upside.

Here's a look at three fallen angels trading near their 52-week lows that could be worth buying.

(Au)Rico suave
Another week and yet another addition from the mining side of the business in AuRico Gold (NYSE: AUQ  ) . AuRico is a Canadian gold miner with land assets in Canada and Mexico, and, like many of its peers, it's been obliterated by the falling price of gold. Relative to many of its peers, it boasts one of the highest trailing P/E ratios and its cash mining costs are roughly middle of the pack at best. Yet I believe that multiple factors are poised to send AuRico significantly higher.

5 Best Gold Stocks To Invest In 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.

5 Best Gold Stocks To Invest In 2014: Golden Star Resources Ltd(GSS)

Golden Star Resources Ltd., a gold mining and exploration company, through its subsidiaries, engages in the acquisition, exploration, development, and production of gold properties. It owns and operates the Bogoso/Prestea gold mining and processing operation that covers approximately 40 kilometers of strike along the southwest-trending Ashanti gold district in western Ghana; and the Wassa open-pit gold mine located to the east of Bogoso/Prestea in southwest Ghana. The company also has an 81% interest in the Prestea underground gold mine located in Ghana. In addition, it holds interests in various gold exploration projects in Ghana, Sierra Leone, Burkina Faso, Niger, and Cote d?Ivoire, as well as holds and manages exploration properties in Brazil in South America. The company was founded in 1984 and is based in Littleton, Colorado.

Advisors' Opinion:

• [By Curtis]

  Golden Star Resources, Ltd Com (AMEX:GSS): This equity had 10,766,183 shares sold short as of Aug 31st, as compared to 9,400,663 on Aug 15th, which represents a change of 1,365,520 shares, or 14.5%. Days to cover for this company is 3 and average daily trading volume is 3,419,976. About the equity: Golden Star Resources Ltd. is a mid-tier gold mining company. The Company’s operating mines are situated along the Ashanti Gold Belt in Ghana, West Africa.

5 Best Stocks To Watch For 2014: Northgate Minerals Corporation(NXG)

Northgate Minerals Corporation, together with its subsidiaries, engages in exploring, developing, processing, and mining gold and copper deposits in Canada and Australia. Its principal producing assets include 100% interests in the Fosterville and Stawell Gold mines in Victoria, Australia; and the Kemess South mine located in north-central British Columbia, Canada. The company was formerly known as Northgate Exploration Limited and changed its name to Northgate Minerals Corporation in May 2004. Northgate Minerals Corporation was founded in 1919 and is headquartered in Toronto, Canada.

Advisors' Opinion:

• [By Christopher Barker]

  I've been reminding Fools to consider positioning for Northgate Minerals' golden explosion for months, and patient gold investors continue to await the day when Northgate's powerful prospects are more fully reflected in the shares. Construction of the critical Young-Davidson mine continues right on schedule, and first production now stands about two quarters away. That means Northgate is reasonably likely to achieve its 2012 production target of 300,000 ounces, followed by 350,000 ounces in 2013. Meanwhile, Northgate recently drilled "one of the best holes ever intersected on the property" -- featuring 4.31 grams of gold per ton over a very wide 79.6-meter segment -- from a new discovery zone outside of the existing 2.8 million-ounce reserve.

  If Young-Davidson were Northgate's sole asset, these shares would still be undervalued here at about $2.60 per share. With a preliminary assessment looming for the reworked Kemess Underground project, a new drill program at the Awakening Gold project in Nevada, and two operating gold mines in Australia, Northgate figures among the clearest bargains in the gold patch.

5 Best Gold Stocks To Invest In 2014: First Majestic Silver Corp.(AG)

First Majestic Silver Corp. engages in the production, development, exploration, and acquisition of mineral properties with a focus on silver in Mexico. The company owns interests in La Encantada Silver Mine comprising 4,076 hectares of mining rights and 1,343 hectares of surface land located in Coahuila; La Parrilla Silver Mine consisting of mining concessions covering an area of 69,867 hectares; and San Martin Silver Mine comprising approximately 7,841 hectares of mineral rights and approximately 1,300 hectares of surface land rights located in Jalisco. It also holds interests in Del Toro Silver Mine consisting of 393 contiguous hectares of mining claims and an additional 129 hectares of surface rights located in Zacatecas; Real de Catorce Silver Project comprising 22 mining concessions covering 6,327 hectares located in San Luis Potosi state; and Jalisco Group of Properties consisting of mining claims totalling 5,240 hectares located in Jalisco. The company was founded in 1979 and is headquartered in Vancouver, Canada.

Advisors' Opinion:

• [By Goodwin]

  The shares closed at $88.19, down $1.1, or 1.23%, on the day. Its market capitalization is $77.08 billion. About the company: Siemens AG manufactures a wide range of industrial and consumer products. The Company builds locomotives, traffic control systems, automotive electronics, and engineers electrical power plants. Siemens also provides public and private communications networks, computers, building control systems, medical equipment, and electrical components. The Company operates worldwide.

• [By Sy_Harding]

  First Majestic Silver is one of the purest silver plays on the market. The company owns and operates three primary silver mines in Mexico: La Parrilla, San Martin, and La Encantada.

  Shares of AG have risen more than 60% for the year.

  First Majestic generates 85% of its revenue through the production and sale of silver. The rest of the company's revenue is generated through gold, lead, and zinc.

  First Majestic expects to increase total silver output from its operations to 7.5 million ounces of silver in 2011, and up to 16.0 million ounces by 2014.

5 Best Gold Stocks To Invest In 2014: Agnico-Eagle Mines Limited(AEM)

Agnico-Eagle Mines Limited, through its subsidiaries, engages in the exploration, development, and production of mineral properties in Canada, Finland, and Mexico. The company primarily explores for gold, as well as silver, copper, zinc, and lead. Its flagship property includes the LaRonde mine located in the southern portion of the Abitibi volcanic belt, Canada. The company was founded in 1953 and is based in Toronto, Canada.

Advisors' Opinion:

• [By Vatalyst]

  With headquarters in Canada, Agnico-Eagle is a gold producer that has been around for a while with operations in Canada, Finland and Mexico and the United States that has paid a cash dividend for 29 consecutive years. AEM gained 25% over the year and reported 83.5% growth in quarterly earnings. It has a market capitalization of $11.4 billion and a trailing P/E ratio of 34x with expectations of earning $0.55 per share. AEM, like other operators like it, are likely a better bet than ETF trust options like SPDR Gold Shares (GLD).

10 Best Financial Stocks For 2014

Investors love stocks that consistently beat the Street without getting ahead of their fundamentals and risking a meltdown. The best stocks offer sustainable market-beating gains, with robust and improving financial metrics that support strong price growth. Does Stratasys (NASDAQ: SSYS  ) fit the bill? Let's look at what its recent results tell us about its potential for future gains.

What we're looking for
The graphs you're about to see tell Stratasys' story, and we'll be grading the quality of that story in several ways:

Growth: Are profits, margins, and free cash flow all increasing? Valuation: Is share price growing in line with earnings per share? Opportunities: Is return on equity increasing while debt to equity declines? Dividends: Are dividends consistently growing in a sustainable way?

What the numbers tell you
Now, let's take a look at Stratasys' key statistics:

10 Best Financial Stocks For 2014: Nuveen California Select Quality Municipal Fund Inc.(NVC)

Nuveen California Select Quality Municipal Fund, Inc. is a closed-ended fixed income mutual fund launched by Nuveen Investments, Inc. The fund is managed by Nuveen Asset Management. It invests in the fixed income markets of California. The fund invests primarily in municipal securities rated Baa/BBB or better. It invests in securities that provide income exempt from federal and California income tax. The fund employs fundamental analysis with bottom-up stock picking approach to create its portfolio. It benchmarks the performance of its portfolio against the S&P California Municipal Bond Index and the S&P National Municipal Bond Index. Nuveen California Select Quality Municipal Fund, Inc. was formed on April 3, 1991 and is domiciled in the United States.

10 Best Financial Stocks For 2014: American Select Portfolio Inc.(SLA)

American Select Portfolio Inc. is a close ended fixed income mutual fund launched and managed by FAF Advisors, Inc. It is co-managed by Nuveen Fund Advisors, Inc. and Nuveen Asset Management, LLC. The fund invests in the fixed income markets of the United States. It primarily invests in mortgage-related assets that directly or indirectly represent a participation in or are secured by and payable from mortgage loans. The fund has an overall credit quality of BBB. It benchmarks the performance of its portfolio against the Lehman Brothers Mutual Fund Government/Mortgage Index. The fund will not invest in inverse floaters, principal-only securities, interest-only securities, inverse interest-only securities, Z-bonds. American Select Portfolio Inc. was formed on September 21, 1993 and is domiciled in the United States.

10 Best Stocks To Invest In 2014: NewBridge Bancorp(NBBC)

NewBridge Bancorp operates as a bank holding company for NewBridge Bank that provides various banking products to small to medium-sized businesses and retail clients. It accepts various deposit products, including interest bearing and noninterest bearing demand deposit accounts, certificates of deposits, savings accounts, NOW accounts, and individual retirement accounts. The company also provides a range of lending products comprising construction, commercial, real estate, and consumer loans. In addition, it offers overdraft protection, personal and corporate trust services, safe deposit boxes, online banking, corporate cash management, brokerage, financial planning and asset management, and mortgage production, as well as secured and unsecured loans. As of December 31, 2010, the company operated 31 branch offices, 2 commercial loan production offices, and 2 mortgage loan production offices in the Piedmont Triad region and coastal region of North Carolina, and the Shenando ah Valley region of Virginia; 1 mortgage loan production office in Raleigh, North Carolina; and 1 in Charlotte, North Carolina. NewBridge Bancorp was founded in 1949 and is based in Greensboro, North Carolina.

10 Best Financial Stocks For 2014: BlackRock Municipal Income Trust (BFK)

BlackRock Municipal Income Trust is a closed ended fixed income mutual fund launched by BlackRock, Inc. It is managed by BlackRock Advisors, LLC. The fund invests in fixed income markets. It invests in companies operating across industrial and pollution control, hospital, tobacco, housing, transportation, education, water and sewer, and power industries. BlackRock Municipal Income Trust was formed on July 31, 2001 and is domiciled in United States.

10 Best Financial Stocks For 2014: Lon.fin & Inv Grp(LFI.L)

London Finance & Investment Group PLC, together with its subsidiaries, operates as an investment finance and management company. It primarily invests in smaller U.K. quoted companies, which are balanced by a general portfolio that consists of investments in U.K. and European equities. The general portfolio includes interest in food and beverage, oil, natural resources, chemicals, and tobacco sectors. The firm is based in London, the United Kingdom.

10 Best Financial Stocks For 2014: Blackrock MuniEnhanced Fund Inc. (MEN)

BlackRock MuniEnhanced Fund, Inc. is a closed ended fixed income mutual fund launched by BlackRock, Inc. It is co-managed by BlackRock Advisors, LLC and BlackRock Investment Management LLC. The fund invests in fixed income markets. It invests primarily in long-term, investment grade municipal obligations. BlackRock MuniEnhanced Fund, Inc. was formed in 1988 and is domiciled in United States.

10 Best Financial Stocks For 2014: Solar Senior Capital Ltd.(SUNS)

Solar Senior Capital Ltd., a business development company, provides investment management services in the United States. The company primarily invests in senior secured loans, including first lien, unitranche, and second lien debt instruments. It serves middle-market companies. The company was founded in 2010 and is headquartered in New York, New York.

10 Best Financial Stocks For 2014: Nexgenrx Inc (NXG.V)

NexgenRx Inc. provides administration and health benefit claims adjudication services in Canada. It administers, adjudicates, and pays drug, dental, and other extended health-care claims for the beneficiaries of health benefit plans underwritten by its customers. The company�s services include prescription drug claims adjudication; dental claims adjudication; and claims adjudication for extended health benefits, including paramedical services, such as chiropractors, podiatrists, and massage therapists. It also provides retrospective and prospective claims data analysis; individual and aggregate stop loss products; emergency out of province/country travel benefits; and medical concierge services. The company offers its services to various organizations who manage health benefit plans on behalf of various plan sponsors, as well as directly to Canadian plan sponsors who wish to provide an administrative services only health benefit plan to their plan members. NexgenRx Inc. w as founded in 2003 and is headquartered in Toronto, Canada.

10 Best Financial Stocks For 2014: Beacon Federal Bancorp Inc.(BFED)

Beacon Federal Bancorp, Inc. operates as the bank holding company for Beacon Federal that provides various banking services. The company?s deposit products include savings accounts, health savings accounts, certificates of deposit, interest and noninterest-bearing checking accounts accounts, money market accounts, and individual retirement accounts. Its loan products portfolio comprises one-to four-family residential mortgage loans, consumer loans, home equity loans, commercial real estate loans, multi-family mortgage loans, and commercial business loans. The company also sells tax preparation services, as well as investment and insurance products on an agency basis. It operates from its corporate office located in East Syracuse, New York; and from eight full-service branches located in Syracuse, Marcy, and Rome, New York; Smartt and Smyrna, Tennessee; Tyler, Texas; and Chelmsford, Massachusetts. The company was founded in 1953 and is headquartered in East Syracuse, New Y ork.

10 Best Financial Stocks For 2014: Southern First Bancshares Inc.(SFST)

Southern First Bancshares, Inc. operates as the holding company of Southern First Bank, N.A that provides various banking products and services. It accepts various deposit products that include checking accounts, commercial checking accounts, savings accounts, and time deposits. The company?s loan portfolio comprises commercial real estate loans; construction and development loans; residential real estate loans; home equity loans; commercial business loans for various lines of businesses, such as the manufacturing, service industry, and professional service areas; and consumer loans, including secured and unsecured installment loans and revolving lines of credit. In addition, Southern First offers safe deposit boxes, traveler's checks, direct deposits, the United States savings bonds, banking by mail, Internet banking services, bill payment services, and cash management services. The company was formerly known as Greenville First Bancshares, Inc. and changed its name to S outhern First Bancshares, Inc. in July 2007. Southern First Bancshares, Inc. was founded in 1999 and is headquartered in Greenville, South Carolina. The company was formerly known as Greenville First Bancshares, Inc. and changed its name to Southern First Bancshares, Inc. in July 2007. Southern First Bancshares, Inc. was founded in 1999 and is headquartered in Greenville, South Carolina.

How Altria Earnings Could Keep Shares Smoking

Altria (NYSE: MO  ) will release its quarterly report next Tuesday, and the stock has made its way higher to reach its best levels since the company spun off its interest in globally focused Philip Morris International. Even as usual concerns about the health impacts of tobacco, and regulatory pressure, continue to weigh on the industry, Altria earnings look poised to keep growing steadily.

Altria's business is deceptively simple, obtaining tobacco and then imposing big markups in its well-marketed cigarettes and other tobacco products. Having largely avoided massive product lawsuit liability, Altria and its peers have rewarded long-term shareholders with huge dividend payouts throughout their history. Let's take an early look at what's been happening with Altria over the past quarter, and what we're likely to see in its quarterly report.

Stats on Altria

Analyst EPS Estimate	$0.63
Year-Ago EPS	6.8%
Revenue Estimate	$4.62 billion
Change From Year-Ago Revenue	0.9%
Earnings Beats in Past 4 Quarters	2

Source: Yahoo! Finance.

How will Altria earnings fare this quarter?
Analysts have largely kept their views on Altria earnings stable recently, with no change to their June-quarter estimates, and a single $0.01 per-share rise for consensus figures for the 2013 and 2014 years. The stock has continued its slow but steady ascent, rising about 6% since mid-April.

The simple story of Altria's success generally involves making the most of its opportunity for as long as it lasts. Even as revenue has been flat, and volumes of its premium Marlboro brand have dropped substantially in recent years, the company has nevertheless used a combination of cost-cutting and higher sales prices to keep its margins rising and ensure growth in profits.

Nevertheless, Altria has continued feeling the pinch of greater regulation and higher excise taxes. Proposals in the Obama administration's budget to raise cigarette taxes by another $0.94 per pack would give Altria and its peers even greater headaches, and even though the budget seems unlikely to pass, regulatory threats, and anti-smoking campaigns, continue to weigh on Altria's future prospects.

Another problem that could eventually hit Altria earnings is counterfeiting. So far, Altria, Lorillard, and Reynolds American haven't seen a huge hit from counterfeiting within the U.S., as sophisticated packaging that makes counterfeiting more difficult has been an effective deterrent, and Philip Morris International has had to deal with the much-more challenging European market in protecting its brands. Yet, as proposals for higher taxes at the state and federal level add to costs, the incentives for counterfeiting keep rising, and the problem could worsen for Altria looking forward.

In the Altria earnings report, watch to see how the tobacco giant responds to efforts from rival Lorillard to bolster its e-cigarette business. With greater regulation making Americans seek alternative ways to get nicotine, e-cigarettes are gaining in popularity, and Altria has promised to come out with a product in August that will serve the market. Depending on how the FDA chooses to regulate e-cigarettes, the company's success or failure with its product could make a huge difference to Altria earnings going forward.

Altria's long-term record has shown that the best investing approach is to choose great companies and stick with them for the long term. The Motley Fool's free report, "3 Stocks That Will Help You Retire Rich," names some other stocks that could help you build long-term wealth and retire well, along with some winning wealth-building strategies that every investor should be aware of. Click here now to keep reading.

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

Why CapLease Shares Soared

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 CapLease (NYSE: LSE  ) , a REIT focused on investing in commercial real estate that is net-leased, soared as much as 23% after agreeing to be acquired by American Realty Capital (NASDAQ: ARCP  ) for $2.2 billion.

So what: The deal, which values CapLease at $8.50 a share, follows American Realty's unsuccessful attempt to purchase Cole Credit Property Trust earlier this year and would now make it the third largest company in the net-lease sector. According to American Realty, it expects the deal will add an additional $0.11 per year in funds from operations and plans to boost its dividend by $0.03 to an annualized rate of $0.94 once the deal closes.

Now what: On paper this looks like a great deal for both parties given that the ongoing low interest rate environment is only going to fuel investor interest in these high yielders, and the fact that net-leased properties (those which require the renter to pay additional expenses beyond rent) cost little to maintain. On the flipside, though, I have to admit I'm a bit worried about American Realty taking on $1.2 billion of CapLease's debt. Overall, this could be a net positive for shareholders in both companies, but I'd tread cautiously around American Realty, especially if the Federal Reserve begins to wind down its bond-buying program.

Craving more input? Start by adding CapLease to your free and personalized Watchlist so you can keep up on the latest news with the company.

With so much of the financial industry getting bad press these days, it may be a greedy when others are fearful moment. Not surprisingly, some of Warren Buffett's biggest investments are in the space. In the Motley Fool's free report, "The Stocks Only the Smartest Investors Are Buying," you can learn about a small, under-the-radar bank that's too tiny for Buffett's billions. Too bad, because it has better operating metrics than his favorites. Just click here to keep reading.

5 Best Oil Stocks To Buy For 2014

President Obama's climate change address at Georgetown University has been hailed as among his best by environmental activists. However, the president's much awaited response to TransCanada's (NYSE: TRP  ) Keystone XL pipeline, hasn't exactly been the best in terms of clarity.

It seems as though both the proponents and the opponents of the 1200-mile crude oil pipeline project are claiming victory. The president, seemingly earnest in his quest to join the fight against greenhouse gas emissions, said that giving the green light for the Keystone XL pipeline only makes sense "if this project does not significantly exacerbate the problem of carbon pollution".�A senior administration official confirmed that the president will direct the State Department to "approve the pipeline only if it will not lead to a net increase in overall greenhouse gas emissions".

5 Best Oil Stocks To Buy For 2014: Imperial Oil Limited(IMO)

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

5 Best Oil Stocks To Buy For 2014: Halliburton Company(HAL)

Halliburton Company provides various products and services to the energy industry for the exploration, development, and production of oil and natural gas worldwide. It operates in two segments, Completion and Production, and Drilling and Evaluation. The Completion and Production segment offers production enhancement services, completion tools and services, cementing services, and Boots & Coots. Its production enhancement services include stimulation and sand control services; completion tools and services comprise subsurface safety valves and flow control equipment, surface safety systems, packers and specialty completion equipment, intelligent completion systems, expandable liner hanger systems, sand control systems, well servicing tools, and reservoir performance services; cementing services consist of bonding the well and well casing, while isolating fluid zones and maximizing wellbore stability, and casing equipment; and Boots & Coots include well intervention services , pressure control, equipment rental tools and services, and pipeline and process services. The Drilling and Evaluation segment provides field and reservoir modeling, drilling, evaluation, and wellbore placement solutions that enable customers to model, measure, and optimize their well construction activities. Its services comprise fluid services, drilling services, drill bits, wireline and perforating services, testing and subsea services, software and asset solutions, and integrated project management and consulting services. The company serves independent, integrated, and national oil companies. Halliburton Company was founded in 1919 and is headquartered in Houston, Texas.

Advisors' Opinion:

• [By Ethan Roberts]

  The third company with “energized” insider buying is oil and gas producer Haliburton (NYSE:HAL). On Feb. 3, Director Murry Gerber purchased 30,000 shares of HAL stock at $36.84 per share, for a total of over $1.1 million. However, Gerber is a fairly new board member, so that somewhat tempers my enthusiasm for his fi rst purchase since becoming a director. And unfortunately for him, those shares could have been purchased for as little as $31 as recently as December 2011.

  In fact, it was quite an interesting week for Gerber, who also purchased over $1.1 million worth of BlackRock (NYSE:BLK) stock the day before.

  It’s been a roller coaster ride for Haliburton, which provides various products and services to the energy industry for exploring, developing and producing oil and natural gas worldwide, in the past year. After peaking in August around $57 per share, the stock pulled all the way back to below $28 in October, but has fought its way back to above $38 in February.

  HAL has a current P/E of 12.02 and, but a meager 1% dividend yield. As with Dominion, if natural gas and oil prices continue to rise, this stock should benefit. However, as the one-year daily chart shows, there’s some overhead resistance at $38 and then again at $40. For that reason, I would look for a pullback to between $35 and $ 35.50 before purchasing  HAL.

  It’s also comforting to know that one would be buying shares cheaper than the company insiders!

• [By Nathan_Slaughter]

  Halliburton is ranked among the top oilfield services companies in America. It has global operations aiding oil companies in the exploration and drilling of wells. Ever since the introduction of the new horizontal drilling technology, Halliburton has been able to boost its productive capacity exponentially from 500 billion barrels about 5 years ago to nearly 4.5 trillion as of date. Revenue through overseas operations has increased nearly 20% since the third quarter of 2011. Also, the company is expected to expand its field of operations significantly in the coming years seeing that power-houses China and Argentina seek assistance from Halliburton for the development of their national oil and gas fields. The current market capitalization of the company is massive at a staggering $30 billion with total recorded revenue of $25 billion in 2011. At a current trading price of around $36, Halliburton has a price-to -earnings ratio of around 11 and earnings per share of almost $3. A positive dividend yield of nearly 1% has helped the company earn the trust of loyal investors. In my view, the company will continue to grow at a steady pace, opening new frontiers for investment such as the massive market of China. Therefore, I rank Halliburton among the safer stock investments for 2012.

• [By ETF Authority]

  Halliburton (HAL) is trading at $36.26. HAL is one of the leading oil equipment and service companies. The shares have traded in a range between $27.21 to $57.77 in the past 52 weeks. The 50-day moving avera ge is $39.37 and the 200-day moving average is $45.12. Earnings estimates for HAL are at $3.37 per share in 2011, and $4.49 for 2012. The book value is about $12.68. HAL pays a dividend of 36 cents per share which gives a yield of 1%. In July, 2011, UBS set a price target of $68 per share for HAL.

Top Stocks To Invest In 2014: Kodiak Oil & Gas Corp (KOG)

Kodiak Oil & Gas Corp. (Kodiak) is an independent energy company focused on the exploration, exploitation, acquisition and production of crude oil and natural gas in the United States. Kodiak has developed an oil and natural gas asset base of proved reserves, as well as a portfolio of development and exploratory drilling opportunities on high-potential prospects with an emphasis on oil resource plays. The Company�� oil and natural gas reserves and operations are primarily concentrated in the Williston Basin of North Dakota. As of January 31, 2012, it had approximately 169,000 net acres under lease, including 157,000 net acres in the Bakken oil play in the Williston Basin of North Dakota and Montana. In January 2012, the Company acquired Williston Basin oil and gas producing properties and undeveloped leasehold. On January 10, 2012, it acquired certain oil and gas leaseholds, overriding royalty interests and producing properties located in North Dakota.

5 Best Oil Stocks To Buy For 2014: Marathon Oil Corporation(MRO)

Marathon Oil Corporation, through its subsidiaries, operates as an international energy company with operations in the United States, Canada, Africa, the Middle East, and Europe. It operates through three segments: Exploration and Production, Oil Sands Mining, and Integrated Gas. The Exploration and Production segment explores for, produces, and markets liquid hydrocarbons and natural gas. The Oil Sands Mining segment mines, extracts, and transports bitumen from oil sands deposits in Alberta, Canada; and upgrades the bitumen to produce and market synthetic crude oil and vacuum gas oil. The Integrated Gas segment markets and transports products manufactured from natural gas, such as liquified natural gas and methanol. The company was formerly known as USX Corporation and changed its name to Marathon Oil Corporation in July 2001. Marathon Oil Corporation was founded in 1887 and is based in Houston, Texas.

Advisors' Opinion:

• [By Skousen]

  Marathon Oil (MRO) has been downgraded by TheStreet Ratings from buy to hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, reasonable valuation levels and good cash flow from operations. However, as a counter to these strengths, we find that the stock has had a generally disappointing performance in the past year.

  Marathon Oil Corporation, through its subsidiaries, operates as an international energy company with operations in the United States, Canada, Africa, the Middle East, and Europe. It operates through three segments: Exploration and Production, Oil Sands Mining, and Integrated Gas. The company has a P/E ratio of 8.1, above the average energy industry P/E ratio of 5.6 and below the S&P 500 P/E ratio of 17.7. Marathon Oil has a market cap of $18.9 billion and is part of the basic materials sector and energy industry. Shares are up 4.5% year to date as of the close of trading on Friday.

5 Best Oil Stocks To Buy For 2014: Encana Corporation(ECA)

Encana Corporation and its subsidiaries engage in the exploration for, development, production, and marketing of natural gas, oil, and natural gas liquids. The company owns interests in resource plays that primarily include the Greater Sierra, Cutbank Ridge, Bighorn, and Coalbed Methane resource plays located in British Columbia and Alberta, as well as the Deep Panuke natural gas project offshore Nova Scotia in Canada. It also holds interests in resource plays comprising the Jonah in southwest Wyoming, Piceance in northwest Colorado, Haynesville in Louisiana, and Texas resource play, including east Texas and north Texas. The company serves primarily local distribution companies, industrials, energy marketing companies, and other producers. Encana Corporation was founded in 1971 and is headquartered in Calgary, Canada.

Advisors' Opinion:

• [By Nelson]

  Encana is not the oil and gas company it once was – it spun off its oil division early in 2009 as Cenovus (another good name to pick up if you want to add to any of the above four), while leaving Encana itself as a pure natural gas play.  But if you want to invest in nat gas, Encana is your Cadillac.  It’s probably the best choice out there for a large cap, extremely well-managed name that you won’t lose sleep over.  You only have to be concerned with the underlying commodity price.

Top Heal Care Companies To Invest In Right Now

Shares of digital music specialist Pandora Media (NYSE: P  ) have taken a plunge today, dipping as low as 3%.

The catalyst for this minor panic? Instant-messaging expert Twitter confirmed that it bought out privately held song-recommendation service We Are Hunted and will launch its own music service in the near future.

Music lovers already have a plethora of choices to manage their playlists and media libraries. However, Twitter's service gets uncomfortably close to Pandora's special sauce. We Are Hunted recommends songs and builds playlists based on your personal preferences and listening habits, much like Pandora's vaunted Music Genome database.

But it's not a wholesale replacement for Pandora. This service seems focused on building better playlists from material you already own or can find for free online. It's not likely to expand your musical universe much. But that's exactly what Pandora does.

Top Heal Care Companies To Invest In Right Now: Suffolk Bancorp(SUBK)

Suffolk Bancorp operates as the holding company for Suffolk County National Bank, a national-chartered commercial bank that provides domestic, retail, and commercial banking services, as well as trust services in Suffolk County, New York. The company offers various deposit products consisting of checking accounts, savings accounts, time and savings certificates, money market accounts, negotiable-order-of-withdrawal accounts, holiday club accounts, and individual retirement accounts. It also provides various secured and unsecured loans, including commercial loans to individuals, partnerships, and corporations; agricultural loans to farmers; installment loans to finance small businesses; automobile loans; and home equity and real estate mortgage loans. In addition, the company offers safe deposit boxes, and trust and estate services; sells mutual funds and annuities; and maintains a master pension plan for self-employed individuals? participation. As of December 31, 2010, i t operated 30 full-service offices in Suffolk County, New York. Suffolk Bancorp was founded in 1890 and is headquartered in Riverhead, New York.

Top Heal Care Companies To Invest In Right Now: Sourcefire Inc.(FIRE)

Sourcefire, Inc. provides intelligent Cybersecurity technologies to commercial enterprises and government agencies worldwide. The company?s network security products include Sourcefire appliances for detecting, blocking, and analyzing network traffic; Sourcefire IPS to examine network packets for threats; Sourcefire NGIPS to discover the characteristics and vulnerabilities of computing devices communicating on a network; Sourcefire NGIPS with Application Control to provide granular control of applications; Sourcefire NGFW that includes application control and firewall capabilities; and Sourcefire SSL Appliance, which decrypts SSL traffic for inspection by network security appliances. It also offers FireAMP, a malware protection solution that uses data analytics to discover, understand, and block malware outbreaks; and Sourcefire Defense Center that provides application programming interfaces to interoperate third-party systems, such as firewalls, routers, log management, security information event management, trouble ticketing, patch management systems, and other technologies. In addition, the company provides Sourcefire Virtual Appliance, an application to inspect communications between different virtual machines; Sourcefire Virtual Defense Center, which provides central management, event analysis, and reporting services; Snort, a traffic inspection engine used in intrusion prevention system; ClamAV, an open source anti-malware product; and Razorback, an open-source project that addresses threat detection and protection. Further, it provides customer support, professional, and education and certification services. The company serves financial institutions, defense contractors, health care providers, IT companies, telecommunication companies, and retailers, as well as national, state, and local government agencies. Sourcefire, Inc. was founded in 2001 and is headquartered in Columbia, Maryland.

5 Best Stocks To Own Right Now: Brilliant Mining Corp (BLT.V)

Brilliant Resources Inc., a junior resource company, engages in the acquisition, exploration, development, and mining of mineral properties primarily in Canada, and west and central Africa. It primarily explores for nickel, copper, cobalt, and platinum group elements. The company owns 100% interest in the Michikamau property that covers 4,325 hectares and is located in west central Labrador, Canada. It also owns rights to a geophysical survey project, which covers 28,051 square kilometers located in Equatorial Guinea, Africa. The company was founded in 1998 and is headquartered in Edmonton, Canada.

Top 10 Heal Care Stocks To Buy Right Now

Gone are the days where contemplating the purchase of $2,500 PC was a common occurrence. You'd have to go back to 1995 when the PC had zero competition from mobile computing and the idea of the "home computer" was a fairly new concept. Over the subsequent 18 years, Moore's Law has been hard at work bringing down the cost of computing, boosting performance, and helping drive worldwide adoption rates. Nowadays, an excellent laptop for the everyday user can be had for less than $500 and a solid tablet or smartphone can be bought for around $200. As a result, a combined 1.5 billion computing devices -- PCs, tablet, and smartphones -- are expected to ship this year. This is where it gets interesting: Of the 1.5 billion devices, only about 21% are expected to be of the PC variety. The world of computing has certainly changed.

Top 10 Heal Care Stocks To Buy Right Now: One Liberty Properties Inc.(OLP)

One Liberty Properties, Inc., a real estate investment trust (REIT), engages in the acquisition, ownership, and management of commercial real estate properties in the United States. The company�?s property portfolio includes retail furniture stores, as well as industrial, office, flex, health and fitness, and other properties. As of March 31, 2008, it owned 67 properties; holds a 50% tenancy in common interest in 1 property; and owns 4 properties through joint ventures. The company has elected to be treated as a REIT under the Internal Revenue Code. As a REIT, it would not be subject to federal income tax, if it distributes at least 90% of its taxable income to its shareholders. One Liberty Properties was founded in 1982 and is based in Great Neck, New York.

Top 10 Heal Care Stocks To Buy Right Now: FLYING BRANDS UTS(FBDU.L)

Flying Brands Limited operates as a home shopping retailer in the Channel Islands, the United Kingdom, Australasia, Europe, and internationally. It operates through four segments: Garden, Gifts, Entertainment, and Greetings Direct. The Garden segment sells gardening products, including bedding plants, fruit and vegetables, garden hardware, and wild bird foods. The Gift segment provides floral bouquets and pot plants delivered as gifts. The Entertainment segment offers audio books, memorabilia music, and DVDs. The Greetings Direct segment provides greetings cards. The company sells its products through catalogue promotions, press advertising, and Internet. Flying Brands Limited is headquartered in St Lawrence, the Channel Islands.

Top Stocks To Own Right Now: Blackrock Preferred (BTZ)

BlackRock Credit Allocation Income Trust IV is a closed ended balanced mutual fund launched by BlackRock, Inc. The fund is co managed by BlackRock Advisors, LLC, BlackRock Financial Management, Inc., and BlackRock Investment Management, LLC. It invests in the public equity and fixed income markets across the globe. The fund invests in the stocks of companies operating across diversified sectors. For the fixed income portion of the portfolio, it primarily invests in securities with an average credit quality of BBB by Standard & Poor�s Corporation. The fund was formerly known as BlackRock Preferred & Equity Advantage Trust. BlackRock Preferred & Equity Advantage Trust was formed on December 27, 2006 and is domiciled in the United States.

Top 10 Heal Care Stocks To Buy Right Now: Columbia Laboratories Inc.(CBRX)

Columbia Laboratories, Inc. engages in the research, development, and commercialization of women?s healthcare and endocrinology products. It develops products by utilizing its proprietary bioadhesive drug delivery technologies to treat various medical conditions. The company offers bioadhesive vaginal gel products that provide solutions for infertility, pregnancy support, amenorrhea, and other gynecologic conditions. Its products include CRINONE and PROCHIEVE, which are progesterone gels; and STRIANT, a testosterone buccal system. Columbia Laboratories, Inc. was founded in 1986 and is headquartered in Livingston, New Jersey.

Top 10 Heal Care Stocks To Buy Right Now: Linde AG (LNAGF.PK)

Linde AG is a German company engaged in the gases and engineering sector. It operates two divisions: Gases and Engineering, as core divisions, as well as Gist. The Gases Division includes Healthcare, producing medical gases; and Tonnage, as its two global business units; as well as the two business areas Merchant and Packaged Gases, offering liquefied and cylinder gases, and Electronics. The Company�� products are used in the energy sector, for steel production, chemical processing, environmental protection and welding, as well as in food processing, glass production and electronics. The Engineering division offers planning, project development and construction of turnkey industrial plants used in fields, such as petrochemical and chemical industries, in refineries and fertilizer plants, to recover air gases, to produce hydrogen and synthesis gases, to treat natural gas, and in the pharmaceutical industry. As of August 13, 2012, the Company acquired Lincare Holdings Inc.

Top 10 Heal Care Stocks To Buy Right Now: Rusoro Mining Ltd(RML.V)

Rusoro Mining Ltd. engages in the acquisition, exploration, development, and operation of gold mining and mineral properties in Venezuela. The company holds interests in two producing gold mines located in El Callao district in south-eastern Venezuela; and interests in various exploration projects and one development project in Venezuela. Its producing gold mines include the Choco 10 mine, in which the company holds a 95% ownership interest; and the Isidora mine, in which the company holds a 50% ownership interest. The company was formerly known as Newton Ventures Inc. and changed its name to Rusoro Mining Ltd. in November 2006. Rusoro Mining Ltd. was incorporated in 2000 and is headquartered in Vancouver, Canada.

Top 10 Heal Care Stocks To Buy Right Now: Provident New York Bancorp(PBNY)

Provident New York Bancorp operates as the bank holding company for Provident Bank that provides commercial, community business, and retail banking products and services to businesses, individuals, and municipalities in New York and New Jersey. It offers various deposit products, such as savings accounts, NOW accounts, checking accounts, money market accounts, club accounts, certificates of deposit, commercial checking accounts, IRAs, and other qualified plan accounts. The company?s loan portfolio includes commercial real estate, commercial business, and one-to four-family real estate loans; acquisition, development, and construction loans; and consumer loans, including homeowner, home equity lines of credit, new and used automobile loans, and personal unsecured loans, such as fixed-rate installment loans and variable lines of credit. In addition, it provides services, including cash management, sweep accounts, insurance agency, investment advisory, asset and investment m anagement, and Internet banking services. As of September 30, 2011, Provident New York Bancorp operated 30 retail branches and 7 commercial banking centers in the Hudson Valley region. The company was formerly known as Provident Bancorp, Inc. and changed its name to Provident New York Bancorp in June 2005. Provident New York Bancorp was founded in 1888 and is headquartered in Montebello, New York.

Top 10 Heal Care Stocks To Buy Right Now: BlackRock Municipal Income Trust (BFK)

BlackRock Municipal Income Trust is a closed ended fixed income mutual fund launched by BlackRock, Inc. It is managed by BlackRock Advisors, LLC. The fund invests in fixed income markets. It invests in companies operating across industrial and pollution control, hospital, tobacco, housing, transportation, education, water and sewer, and power industries. BlackRock Municipal Income Trust was formed on July 31, 2001 and is domiciled in United States.

Top 10 Heal Care Stocks To Buy Right Now: El En(ELN.MI)

El.En S.p.A., through its subsidiaries, engages in the research, development, manufacture, distribution, and sale of laser systems in Europe and internationally. It offers laser systems for medical applications, including aesthetics, surgical, physiotherapy, dermatology, surgery, cosmetics, dentistry, and gynaecology. The company also provides laser systems for industrial applications, such as cutting, marking, and welding of metals, wood, plastic, and glass, as well as in the decoration of leather and fabric, and the conservative restoration of works of art; and systems for scientific applications and research. In addition, it offers after-sales service, including support for the installation and maintenance of its laser systems; and spare parts, consumables, and technical assistance services. The company sells its products through its subsidiaries, as well as through a network of distributors. El.En S.p.A. was founded in 1981 and is headquartered in Calenzano, Italy.

Top 10 Heal Care Stocks To Buy Right Now: Kingfisher(KGF.L)

Kingfisher plc, through its subsidiaries, operates as a home improvement retailer. The company primarily provides home improvement and garden products; kitchen, bathroom, and bedroom products; and DIY products. Its principal brand portfolio includes B&Q, Castorama, Brico Depot, and Screwfix. Kingfisher plc offers its products through 860 stores in 8 countries in Europe and Asia, primarily the United Kingdom, France, Poland, Turkey, and China, as well as through online. The company has a strategic alliance with Hornbach Holding A.G. Kingfisher plc was founded in 1980 and is headquartered in London, the United Kingdom.

W.W. Grainger Beats Analyst Estimates on EPS

Why Koppers Shares Dropped

Top 5 Stocks To Invest In 2014

Many professional financial planners will tell you that it's almost impossible to handle retirement planning on your own. But the simple truth is that by understanding a few basic principles, you can plan for your retirement without letting yourself get sidetracked by all the potential complications that could derail your finances.

The basics of retirement planning
At its core, retirement planning involves just a few basic goals:

During your career, you need to set aside some of your financial resources in order to prepare for a future in which you no longer earn as much. A large number of retirees face many of the same specific financial challenges after they retire, and taking steps to protect yourself from the potential damage that those challenges can wreak on your retirement savings can help you avoid problems down the road. Given the uncertainties of life expectancy, you want to make sure you won't outlive your money, yet you also want to make the best use of the financial resources you do have, both for your own benefit and for the benefit of your loved ones.

From there, of course, it's easy to go into incredible depth in covering each of these basic goals. For instance, saving for retirement can get extremely complex, as you navigate through tax-favored accounts like 401(k) plans and various types of IRAs. Different investment strategies can produce very different results, leading to large disparities in long-term returns that can produce nest eggs of much different sizes. Your own unique reactions to changing market conditions can lead you to take different actions than another person with exactly the same financial circumstances, also resulting in much different outcomes.

Top 5 Stocks To Invest In 2014: NMDC Ltd (NMDC.NS)

NMDC Limited (NMDC) is an India-based iron ore producer and exporter. The Company operates in two business segments: iron ore and other minerals and services. The Company is engaged in the exploration of a range of minerals including iron ore, copper, rock phosphate, lime stone, dolomite, gypsum, bentonite, magnesite, diamond, tin, tungsten, graphite, and beach sands. As of March 31, 2012, it produced about 30 million tons of iron ore from three fully mechanized mines, which include Bailadila Deposit-14/11C, Bailadila Deposit-5, 10/11A (Chhattisgarh State) and Donimalai Iron Ore Mines (Karnataka State). As of March 31, 2012, NMDC supplied 269.16 lakh tons of iron ore to domestic industries and had exported 3.85 lakh tons of iron ore. Its sponge Iron production was at 37,260 tons and its diamond production was 18043.44 carats during the year fiscal ended March 31,2012. On December 12, 2011, the Company's wholly owned subsidiary NMDC Power Ltd was incorporated.

Top 5 Stocks To Invest In 2014: Franklin Financial Corporation(FRNK)

Franklin Financial Corporation operates as a holding company for Franklin Federal Savings Bank that offers financial services to consumers and businesses. Its deposit products include passbook savings, money market savings, and money market checking, as well as certificates of deposit. The company?s loan portfolio comprises nonresidential real estate loans, multi-family real estate loans, one-to four-family residential loans, construction loans, land and land development loans, non-real estate loans, and second mortgages. It also offers a range of financial services, including mutual funds; debt, equity, and government securities; retirement accounts; insurance products; and fixed and variable annuities. Franklin Financial Corporation operates eight full-service retail banking offices in the Greater Richmond area of central Virginia. The company was founded in 1933 and is headquartered in Glen Allen, Virginia.

10 Best Computer Hardware Stocks To Buy For 2014: The Blackstone Group L.P.(BX)

The Blackstone Group, L.P., together with its subsidiaries, provides alternative asset management and financial advisory services worldwide. The company operates in five segments: Private Equity, Real Estate, Hedge Fund Solutions, Credit Businesses, and Financial Advisory. The Private Equity segment involves in private equity investing through five general private equity funds and one specialized fund focusing on communications-related investments. This segment engages in various transactions comprising leveraged buyout acquisitions of seasoned companies, transactions involving growth equity or start-up businesses in established industries, minority investments, corporate partnerships, distressed debt, structured securities, and industry consolidations. The Real Estate segment manages general opportunistic real estate funds and internationally focused opportunistic real estate funds. This segment also has debt investment funds targeting non-controlling real estate debt-rel ated investment opportunities in the public and private markets, primarily in the United States and Europe. The Hedge Fund Solutions segment manages funds of hedge funds, and Indian-focused and Asian-focused closed-end mutual funds. The Credit Businesses segment manages credit-oriented funds, CLOs, credit-focused separately managed accounts, and publicly registered debt-focused investment companies. The Financial Advisory segment offers financial and strategic advisory, including corporate finance, and mergers and acquisitions advice; restructuring and reorganization advisory; and fund placement services for alternative investment funds. Blackstone Group Management L.L.C. operates as the general partner of the company. The Blackstone Group, L.P. was founded in 1985 and is headquartered in New York, New York.

Advisors' Opinion:

• [By Alexandra Leigh]

  Blackstone has announced a partnership with a management team, led by the former Executive Chairman at Element Power and former head of Iberdrola Renewables Pedro Barriuso, through which to form Fisterra Energy, a firm owned by funds managed by Blackstone on behalf of its private equity investors. The new company’s primary concentration will be to identify, develop, finance, construct and operate large scale independent power projects in markets seeing capacity or transmission shortfalls, with a focus in Europe, Latin America, and the Middle East.

• [By Goldman]

  Blackstone(BX) is an alternative-investment company, structured as a publicly traded partnership, which invests roughly $104 billion of fee-generating assets in private equity, real estate and hedge funds. The firm also has an advisory unit, offering merger and acquisition, restructuring and reorganization assistance. It's currently overseen by billionaire investor Stephen Schwarzman.

  Goldman expects several of Blackstone's funds to surpass so-called high-water marks and to resume charging performance fees in 2011. Furthermore, It thinks funds could attract another $7 billion. Blackstone reported quarterly results Feb. 3.

  Blackstone posted fourth-quarter economic net income, profit excluding taxes and certain charges, of 46 cents a share, beating Goldman's estimate of 30 cents. On a GAAP basis, the company's loss decreased 92% to $11 million, or three cents a share, from $143 million, or 46 cents, a year earlier. Its 32 cent distribution beat Goldman's forecast of 24 cents. Goldman boosted its price target to $20 in reaction to the report. It now expects 86 cents of 2011 distributions, equivalent to a yield of more than 5%. Goldman says Blackstone is "in the sweet spot for both growth and income (from rising distributions amid portfolio realizations) and we still see room for further multiple expansion."

Top 5 Stocks To Invest In 2014: Tejon Ranch Co(TRC)

Tejon Ranch Co., together with its subsidiaries, engages in the real estate development and agribusiness business activities in the United States. The company operates in three segments: Commercial/Industrial Real Estate Development and Services, Resort/Residential Real Estate Development, and Farming. The Commercial/Industrial Real Estate Development and Services segment involves in entitling, planning, and permitting land for development; the construction of infrastructure, pre-leased buildings, and buildings to be leased or sold; and the sale of land to third parties. It leases land to a truck wash, auto service stations with convenience stores, fast-food operations, full-service restaurants, motel, antique shop, and the United States Postal Service facility, as well as for oil and mineral royalties and grazing. The Resort/Residential Real Estate Development segment engages in the land entitlement, land planning and pre-construction engineering, and land stewardship act ivities. The Farming segment farms various permanent crops, including wine grapes in 1,621 acres; almonds in 1,513 acres; and pistachios in 1,012 acres. It also manages farming of alfalfa and forage mix on 775 acres in the Antelope Valley; and leases 750 acres of land for the growing of vegetables. The company was founded in 1936 and is based in Lebec, California.

Top 5 Stocks To Invest In 2014: Stamford Land Corporation Ltd (H07.SI)

Stamford Land Corporation Ltd, an investment holding company, owns and operates a portfolio of luxury hotels in Australia, Singapore, and New Zealand. It operates hotels and resorts under the Stamford Grand North Ryde, Sir Stamford Circular Quay, Stamford Plaza Sydney Airport, Stamford Grand Adelaide, Stamford Plaza Adelaide, Stamford Plaza Melbourne, Stamford Plaza Brisbane, and Stamford Plaza Auckland names. It also engages in the investment, construction, development, and trading of residential apartments, and retail and commercial buildings. In addition, the company is involved in providing travel agency services; importing, exporting, and dealing in wall coverings, interior decorations, and furnishing products; and offering management and consultancy services. Stamford Land Corporation Ltd is based in Singapore.