AT&T Inc. Eyes Vodafone Group Plc Takeover (T)

Telecom giant AT&T Inc. (T) is looking to make a big move after watching its main competitor, Verizon Wireless (VZ), turn in a big earnings win.

The strategy may actually involve a firm that was, until recently, heavily involved with Verizon. Vodafone Group Plc (VOD) held a major stake in Verizon, which the latter only recently purchased back to operate on its own.

With AT&T looking to expand its operations, joining forces with a firm like Vodafone can help push the boundaries on its reach and customer base. Though the companies have yet to enter formal negotiations, sources state that executives at AT&T are discussing a bid to takeover Vodafone.

It is also rumored that T is looking at the U.K. firm, EE, but that seems less likely than the Vodafone deal. The company is expected to announce a bid sometime next year and the move is heavily expected by buy-side investors. The rumors alone had Vodafone’s stock trading higher on the day.

T shares were up 1 cent at Thursday’s close. The stock is up approximately 7.5% on the year.

Is Halliburton Still a Winner?

With shares of Halliburton Company (NYSE:HAL) trading at around $43.51, is HAL an OUTPERFORM, WAIT AND SEE or STAY AWAY? Let's analyze the stock with the relevant sections of our CHEAT SHEET investing framework:

C = Catalyst for the Stock's Movement

This pretty much comes down to strong international performance and sub-par North American performance. Considering 53 percent of revenues are from North American operations, this is somewhat of a concern. However, there are many factors working in Halliburton's favor as well.

Halliburton recently beat expectations. It has beaten expectations in four out of the last five quarters. Completion & Production revenues declined 4.4 percent year-over-year, but Drilling & Evaluation revenues increased 11.5 percent year-over-year. Margins have improved, and management expects them to continue to improve throughout the year.

Domestic demand might have slowed, but Halliburton has seen vigorous international drilling activity. The deepwater drilling revival in the Gulf of Mexico is also a big positive. Furthermore, Halliburton has strong relationships with key players in the industry throughout the world, and it has reached the expert level when it comes to finding ways to cut costs. Other positives include a positive outlook, consistent cash flow, quality debt management, diversification, and a recent dividend hike.

In regards to company culture, Halliburton comes in above average, which is a good sign. According to Glassdoor.com, employees have rated their employer a 3.3 of 5, which is above average. A decent 65 percent of employees would recommend the company to a friend, and 79 percent of employees approve of CEO Dave Lesar.

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The chart below compares fundamentals for Halliburton, Baker Hughes International (NYSE:BHI), and Schlumberger (NYSE:SLB).

	HAL	BHI	SLB
Trailing P/E	20.20	16.83	18.46
Forward P/E	10.72	11.18	13.24
Profit Margin	6.96%	5.65%	12.70%
ROE	13.09%	7.13%	15.96%
Operating Cash Flow	3.27B	2.30B	7.07B
Dividend Yield	1.20%	1.30%	1.60%
Short Position	2.10%	2.10%	1.00%

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

T = Technicals Are Strong

Halliburton has outperformed its peers for every time frame listed below. It’s also trading above its averages.

	1 Month	Year-To-Date	1 Year	3 Year
HAL	6.44%	25.75%	39.32%	59.78%
BHI	-0.38%	12.56%	11.33%	4.28%
SLB	-0.65%	8.89%	13.96%	21.25%

50-Day SMA	40.72
200-Day SMA	37.83

E = Equity to Debt Ratio Is Strong

The debt-to-equity ratio is stronger than the industry average of 0.40.

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	Debt-To-Equity	Cash	Long-Term Debt
HAL	0.31	2.32B	4.82B
BHI	0.29	1.10B	5.09B
SLB	0.31	5.56B	11.10B

E = Earnings Are Steady

Earnings and revenue have consistently improved over the past several years. However, revenue and earnings haven’t been as consistent on a quarterly basis.

Fiscal Year	2008	2009	2010	2011	2012
Revenue ($) in billions	18.28	14.68	17.97	24.83	28.50
Diluted EPS ($)	2.45	1.27	2.01	3.08	2.84

Quarter	Mar. 31, 2012	Jun. 30, 2012	Sep. 30, 2012	Dec. 31, 2012	Mar. 31, 2013
Revenue ($) in billions	6.87	7.23	7.11	7.29	6.97
Diluted EPS ($)	0.68	0.79	0.65	0.7186	-0.02

Now let's take a look at the next page for the Trends and Conclusion. Is this stock an OUTPERFORM, a WAIT AND SEE, or a STAY AWAY?

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Conclusion

Halliburton has been a steady performer over the past three years. This trend is likely to continue as long as the broader market stays healthy. Then again, a market that only moves in one direction is an unhealthy market, but that's a conversation for another time. As long as the trend is up, Halliburton should ride the wave. If there are any slowdowns, the 1.20 percent yield should help a little.

The ABC’s of the 3:2:1 Spread

There are a handful of MLPs that hold refining assets, but investors should really understand the refining business before attempting to take the plunge. The refining sector is cyclical, which may imply too much volatility for some investors looking for consistent, stable payouts from their master limited partnerships. But those who understand the nuances of the sector, are willing to accept somewhat higher risks and can correctly anticipate the cycles should be in line for rich rewards.

Refiners make money by converting crude oil into finished products such as gasoline, diesel and fuel oil. A refiner’s profit margin is the difference between the cost of crude oil purchased and the price of finished products sold. This is what’s known in the industry as “the crack spread.” “Crack” refers to the fact that oil is being cracked, or split up, into the various refined products, and “spread” reflects the price spread between the raw material (crude) and the processed fuels.



Although a barrel of oil is refined into many finished products like lubricants, waxes, coke, asphalt and liquefied petroleum gases, the crack spread typically refers only to the crude oil input and the gasoline and distillate output. The most widely utilized crack spread for US refineries is called the 3:2:1, which estimates the profitability of converting three barrels of oil into two barrels of gasoline and one barrel of distillate (diesel, jet fuel, and fuel oil).

The crack spread is a rough approximation of a refiners’ profitability. Because it depends on the differential between the price the refinery pays for oil and the price it receives for products, refiners are one segment of the oil and gas industry that can see profits increase as oil prices fall! . But they also are at risk of seeing profits decline when oil prices are rising.

West Texas Intermediate (WTI) is a benchmark for crude oil prices in the US. Brent crude, which is of slightly lower quality than WTI, is the benchmark for most of the global oil trade. The price of Brent also strongly influences the price of finished products.  Certain refiners can benefit (or suffer) from their location and logistics by buying crudes at WTI prices and selling finished products influenced by Brent prices. Thus, the differential in the price of Brent and WTI can influence the crack spread for these refiners.

Historically, the price difference between WTI and Brent has been small. Prior to 2010, WTI was usually slightly more expensive than Brent. But starting in 2010, the expansion in US oil production resulted in insufficient pipeline capacity for getting mid-continent oil to coastal markets. A glut of crude developed across the mid-continent, and as a result, the price of WTI became depressed relative to Brent. After years of having traded at a $1 to $3 discount to WTI, Brent suddenly began to trade at a premium to WTI. In 2011 this differential increased to more than $25/bbl, and it remained elevated in 2012.

The substantial increase in the Brent-WTI differential created profitable opportunities for refiners that could buy WTI-type crudes and sell the finished products into markets at prices where products were more reflective of Brent crude. As a result, refiners made strong advances in 2011 and 2012. But pipeline capacity started to catch up in 2013, and as the Brent-WTI differential shrank so did the share prices of most refiners.

Many analysts downgraded the refining sector in Q3 after the Brent-WTI differential had already collapsed. Simmons downgraded the sector to Neutral because of concerns about refining margins in Q3 and into 2014. JPMorgan, Cowen, and Credit Suisse also recently downgraded refiners, and other brokerages lowered their price targets.

Witho! ut a doub! t, refiners are going to turn in disappointing year-over-year results for Q3. In Q3 2012, the Brent-WTI differential averaged $17.43/bbl. In Q3 of this year, the differential averaged $4.43/bbl. That is going to significantly drag down quarterly earnings of refiners relative to a year ago. Refinery MLPs are going to have a lot less cash relative to a year ago from which to make Q3 distributions.

But the Brent-WTI differential has increased significantly since Q3. Q4 performance will still almost certainly be below that of a year ago when the Brent-WTI differential averaged $22/bbl, but the differential is now back above $10/bbl and poised to head higher if WTI prices continue to weaken.

As a result, there may be some buying opportunities if the refining MLPs dip after announcing what will likely be disappointing Q3 results. In next week’s issue, I will profile the MLPs that own refineries, and discuss their prospects.

(Follow Robert Rapier on Twitter, LinkedIn, or Facebook.)

Will Digital Realty's Crisis Of Confidence Persist?

Trading 30% lower than it did around a year ago and with a short float of around 20%, data services provider Digital Realty (DLR) has developed into the REIT industry's most controversial stock. Short interest has more than doubled over the past six months, aided largely by a highly publicized bearish position taken by Highfield Capital's Jonathan Jacobsen. Though the stock trades at a fairly low multiple based on current operating expectations, investors appear about as motivated to buy a piece of DLR as they would a beach house with a hurricane approaching.

In this article, we will take up brief discussion of Jacobson's bear thesis, management's rebuttal and struggle with regaining investor confidence, the bullish counterpoint, and some general long-term industry observations and speculations.

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The Bear Case

As part of a presentation at the Ira Sohn Investment Conference in May, hedge fund manager Jacobson contended that DLR is not including enough recurring maintenance expenditure when it calculates its AFFO. He says as a result DLR's yield is "illusory," and that stock offerings are being used to pay for an uncovered company dividend. Further, Jacobson said he sees low barriers to entry, competition, and generally weak fundamentals affecting the company's bottom line going forward. He thinks the stock is worth in the neighborhood of $20 a share.

Company Rebuttal

In a half hour presentation (listen here) at a REIT conference in June, Digital Realty management addressed each and every issue Jacobson brought to the forefront. Most importantly the company declared that its dividend was "well covered and will continue to grow," with DLR CEO Michael Foust calling Highfield's accounting contention "ridiculous.! "

Management went on to extol the virtues of its building portfolio, noting a 3-year mean property age, and the long expected life of both its buildings and the components it utilizes in the buildings.

DLR CEO Michael Foust

However, somewhat acquiescing to Jacobson's competition concerns, company management did acknowledge that a fragmented and emerging competitive landscape was starting to build, with both public and opportunistic private entities entering the fray. Further, the company admitted that it anticipates a flattish rent environment over the next several years.

Despite its assurances in June, and what would probably be considered an uneventful quarter operationally, the company announced recharacterization of capex, which seems to have put more of a damper on investor attitude. Citigroup, in a research note, went so far to say that DLR has "damaged its credibility and lost investors' confidence." The stock has traded down as a result.

Current Bull Case

As I mentioned at the outset, from a quantitative standpoint, DLR shares appear cheap, selling at about 12X this year's FFO with expectations for 10 percent FFO growth next year. Leverage sits at a manageable 35% of enterprise value. REIT cohort Brad Thomas pounded the table on DLR in a recent writing, with mainly a valuation tilt, arguing that the market is missing the big picture with its focus on the inconsequential nature of the accounting flap at DLR.

Bulls further tend to point towards general technology growth and IT outsourcing trends as a bullet point for investment in this space and specifically DLR.

My Take

Though I have no current position in the stock, I am intrigued by the sell off and the continuing controversy surrounding the company's accounting and growth prospects. I will start by saying that in so far as REITs go, Digital Realty's risk/r! eward pro! file appears much higher than its peers solely due to the business it is engaged it. Let's face it, while DLR owns real estate and its income is rent and services based, it is a quasi-participant in the evolution of technology, which in and of itself raises the risk bar in my opinion.

While a more conservative triple net REIT like Realty Income (O) engages in leaseback transactions with time tested, mundane industries such as drug stores, auto parts distributors, and restaurants, DLR, a public entity for less than 10 years, is building somewhat specialized structures with raised floors to accommodate miles of wiring and hundreds of electronic components. Looking long-term, though trends would indicate that growth here will sustain, I'd argue that technological evolution and data compaction could lessen the need for gigantic data centers at some point in the future.

Digital Realty's business harkens me back to the height of the Internet frenzy when Exodus Communications ramped up its server farms and was a darling of technology analysts and day traders. The company expanded too quickly, had a number of credit-unworthy "dot bombs" as customers, and ultimately collapsed shortly after the 9/11 tragedy. While DLR is no Exodus from an expansion or client perspective, technology is a fickle, ever changing space, and its inherent risks are certainly relevant to those looking for a dependable income investment.

Touching on the Highfield's argument for a moment, I find the assertion that DLR is worth only $20 a share sensationalistic. Keep in mind that the goal of a short seller is to stoke fear in the minds of investors, which the firm certainly has accomplished. While a short-sell strategy may be profitable longer-term if data centers indeed are entering a period of secular decline, which is part of Highfield's contention, it's not something that is going to h! appen ove! rnight. On the accounting issue, there don't appear to be many red flags waving, although the investment community doesn't seem totally satisfied with the way in which management is addressing the situation.

Until the market seems convinced one way or another, I suspect the stock will tread water, with aggressive income investors looking closely at its ever growing dividend yield. Despite its attractive valuation, unlike Brad, I'm personally not inclined to go rushing into Digital Realty right now, given the elevated risk profile I perceive and better alternatives in the REIT space. I do think the stock presents an opportunity for ultra aggressive total return players, however. If the company assumes a more rigid footing with the investment community and regains a higher FFO multiple, the stock could race higher as short sellers are forced to cover. But that might be a big if at this point.

Source: Will Digital Realty's Crisis Of Confidence Persist?

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. (More...)

Additional disclosure: Disclaimer: The above should not be considered or construed as individualized or specific investment advice. Do your own research and consult a professional, if necessary, before making investment decisions.

Why Wesco Aircraft Holdings's Earnings May Not Be So Hot

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

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

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

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

Over the past 12 months, Wesco Aircraft Holdings generated $54.5 million cash while it booked net income of $97.1 million. That means it turned 6.5% of its revenue into FCF. That sounds OK. However, FCF is less than net income. Ideally, we'd like to see the opposite.

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

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

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

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

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

With questionable cash flows amounting to only 8.9% of operating cash flow, Wesco Aircraft Holdings's cash flows look clean. Within the questionable cash flow figure plotted in the TTM period above, other operating activities (which can include deferred income taxes, pension charges, and other one-off items) provided the biggest boost, at 39.7% of cash flow from operations. Overall, the biggest drag on FCF came from changes in accounts receivable, which represented 57.5% of cash from operations. Wesco Aircraft Holdings investors may also want to keep an eye on accounts receivable, because the TTM change is 3.2 times greater than the average swing over the past 5 fiscal years.

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

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

Add Wesco Aircraft Holdings to My Watchlist.

Why the 2014 Jeep Patriot Is the Best SUV on the Market

The 2014 Jeep Patriot really is the complete package. Photo credit: Chrysler

Have you ever come to the point where your current vehicle just isn't cutting it anymore? It just seems like one thing happens after another and you realize that it's time for an upgrade. Unfortunately, that just opens up a whole new set of issues as you now need to find that new set of wheels.

That's exactly the position my wife and I found ourselves in recently, when it became apparent it was time to replace our 2007 Jeep Liberty. Because Jeep stopped manufacturing the Liberty after the 2012 model year, we were forced to look elsewhere for our upgrade. Surprisingly, there wasn't much on the market that appealed to us. We were looking for something having the rugged good looks of the Liberty, but with better gas mileage and more comfort for long trips. Not only that, but we needed something with four-wheel drive for visits to family during the winter. Oh, and we wanted it all for a price we could afford.

We spent hours looking online at vehicles including Ford's  (NYSE: F  )  Escape, which, in all honesty, didn't have the rugged good looks we wanted. It was the same story when comparing General Motors' (NYSE: GM  )  Chevy Equinox. Further, while both are excellently built vehicles, when putting a price tag on the fully featured vehicle we were looking for, it really wasn't as appealing as the vehicle we ended up purchasing: the 2014 Jeep Patriot. 

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Not only did the Patriot have the rugged good looks we desired, but the price really couldn't be beat. Its base Sport model starts at just $15,995, while the more luxurious Limited can be had starting at $23,995. Compared with the Chevy Equinox which starts at $24,225, or the Ford Escape at $22,700, it's evident why the Patriot has been called the best-priced SUV in America.

Best of all, the Patriot put our gas-guzzling Liberty to shame, as the four-wheel drive 2.4L World Engine our Patriot is equipped with gets up to 27 MPG on the highway and 21 MPG in the city -- though I will point out Ford's Escape and Chevy's Equinox can both get up to 32 MPG on the highway. When it comes down to the overall value, missing out on a few MPGs was a compromise we were willing to make, especially in light of the fact that we were lucky if our old Liberty would give us 20 MPG on the highway. 

With CAFE standards set to nearly double to a tough new 54.5 MPG standard by 2025, both automakers and consumers have really been putting a premium on those more fuel-efficient vehicles. The industry has been making great progress, especially when it comes to SUVs. Today's SUVs are now getting similar gas mileage as midsize sedans were delivering earlier in the decade. That's great news for customers wanting the space of an SUV without paying a lot extra at the pump. 

What's not surprising is that customers are beginning to take notice. This past June was the best sales month for Chrysler since 2007, with sales of its flagship Jeep Grand Cherokee leading the way up 33%. All Jeep brand vehicles recorded double-digit sales gains last month, and the Patriot set a record for its best June ever, as sales jumped 20%. 

The more fuel-efficient Ford Escape has also performed well on the market, as its sales have been on a record-setting pace, though it was just up 1% last month to 28,694 vehicles. Still, the increase helped drive Ford's overall sales, which were up 13%. Meanwhile, over at GM, its total sales were up 6%, with the Equinox having a stellar month as its sales were at record levels, up 14%.  

The key takeaway is that customers want an SUV that gets pretty decent gas mileage at an affordable price. While the Patriot might not have the best gas mileage in its class, when you combine its safety features (it was named an Insurance Institute for Highway Safety top safety pick), price, and rugged good looks, it's really in a class of its own. That, in my opinion, makes it the best SUV on the market today.

Elevated oil prices has kept the price of gas high, making it critical for SUVs and crossovers to provide customers for more miles per gallon. If you've been considering how you can profit from those high prices, you might wan to check out The Motley Fool's special report on "3 Stocks for $100 Oil." For free access to this report, simply click here now.

With Crude Falling, The Time to Buy Oil Stocks Is Now

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Wall Street Gurus Agree – Oracle and Cabot Oil are Buys

There's no way around it — the E&P industry in North America is turning out tons and tons of oil.

By fracking regions like the Bakken and Eagle Ford, the oil and gas industry is setting America on a course to energy independence.

Analysts at the Energy Information Administration (EIA) now expect the U.S. to produce an average of 7.5 million barrels a day of oil this year. That number will rise to roughly 8.4 million barrels a day in 2014.

This is certainly great news. Except for one slight problem: It's creating a huge supply glut.

As we've fracked along, inventories have continued to rise. That's a big issue, because American's current demand isn't coming close to using those big inventories. While we still import some oil — mostly from Canada and Mexico — supplies across the U.S. continue to rise. That's managed to push prices from NYMEX traded Texas Tea down below $100 per barrel for the first time in months.

However, they won't stay that way as many long-term catalysts are ready to send prices higher in the future. For investors, the time to buy oil stocks could be on.

WTI at Four Month Lows

West Texas Intermediate (WTI) has fallen had over the last few weeks as demand simply hasn’t kept up with rising inventories. As E&P firms continue to tap our shale resources at a rapid pace, supplies of crude oil in America have risen to record highs.

After being delayed due to the government shutdown, the EIA report for the week ending Oct. 18 showed crude oil supplies expanded by more than 5.2 million barrels. That was more than expected by analysts and pushed inventories to 379.8 million barrels — the highest amount since July and above five-year averages.

What's more important is that those supplies have risen 6.8% — or 24.2 million barrels — in the last five weeks alone.

Given the bearish picture facing WTI, is understandable that prices for American crude oil benchmark would take a hit, all the way past the psychological $100 per a barrel mark. December futures for WTI can currently be had for only $96.40 per barrel. That's the lowest settlement price on the NYMEX for WTI since June.

Overall, WTI futures have slipped about 6% since mid-October.

Better News For Crude Longer Term

While there are plenty of reasons to be sour on WTI crude at the moment, the longer-term picture is still quite rosy for oil producers and oil stocks.

First, drilling costs continue to rise … by a lot. Using of all this high-tech gear in order to frack a well or drill deep offshore is getting downright expensive. According to think tank McKinsey, the inflation-adjusted average cost of starting a new oil well has more than doubled over the past decade. Meanwhile, the most advanced deepwater drilling rigs can cost about $600,000 a day to rent.

These higher and higher costs need to be covered by producers in order to justify drilling in the first place. Oil prices need to be high and if they're not “cutting the mustard,” E&P firms will stop drilling and cut supplies. Think about natural gas just a few months ago. The same scenario will play out in the oil markets.

Secondly, new sources of demand may be at hand. But they aren't coming from here in the U.S.

Currently, it's illegal for producers in the U.S. to export their bounty to nations without free-trade agreements. However, given the huge plethora of supplies and the desire to keep jobs growing, exports could be a thing of the future. Already, several CEO's of energy companies shave begun drumming up support for the idea and analysts estimate that the U.S. will begin exporting crude within a few years.

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That will once again make WTI an international benchmark and with that prestige comes more global demand and higher prices.

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With WTI falling, investors are being given an early Christmas present — an opportunity to buy energy stocks. As crude has fallen, so have share prices for several producers like EOG Resources (EOG) and Cabot Oil & Gas (COG) … although both oil stocks have regained a sliver of those losses so far today.

Given the longer-term picture, the markets are giving portfolios are great chance to re-up exposure to oil stocks. Of course, an exchange-traded fund remains the easiest way to buy oil stocks.

Fellow InvestorPlace contributor Lawrence Meyers recently recommended the Energy SPDR (XLE) as good ETF to hold for life. I like the pick and you could certainly do worse, but my personal favorite way to play WTI crude would be the iShares U.S. Energy ETF (IYE).

The ETF tracks 82 domestic energy firms across all sub-sectors of the industry. This provides exposure to the E&P players, refiners, midstream and oil service stocks. There are even a few alternative energy names — such as First Solar (FSLR) — as well. The fund also provides exposure to faster growing small- and mid-cap players. That gives investors an opportunity to play the current low price situation (the refiners will have juicer margins) to the high (the producers will be better).

That diverse focus has allowed the fund to rack up some impressive annual returns of 14.18% over the last 10 years. Fees run a cheap 0.45%, or $45 per $10,000 invested.

All in all, the current low price market for WTI crude won't stay this way forever. That means investors should run, not walk, into energy and oil stocks. The iShares U.S. Energy ETF is the best domestic way to do that.

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

Post-Holiday, Pentagon Slow to Return to Work Awarding Contracts

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Showing that private sector workers aren't the only ones who have trouble "ramping back up" after a holiday, the Department of Defense eased back into its awarding of contracts the day after the July 4.

DoD issued a grand total of three -- yes, three -- contracts Friday, and one of those went to privately held TRI-COR Industries. As for the two contracts going to publicly traded companies, those were for:

$134 million: A cost-plus-incentive-fee modification to a previously awarded advance acquisition contract awarded to United Technologies (NYSE: UTX  ) to support Low Rate Initial Production Lot VI of the Joint Strike Fighter F135 Propulsion System -- that's the Pratt & Whitney engine that power's Lockheed's F-35 fighter jet. Engines included in this production "lot" are destined for the U.S. Air Force, Navy, and Marine Corps, as well as for the militaries of Italy, the U.K., Turkey, Australia, the Netherlands, Canada, Norway, and Denmark. UTC is expected to complete work on this contract by December 2015. $10.8 million: Going to BAE Systems (NASDAQOTH: BAESY  ) under a 56-calendar day, firm-fixed-price contract to perform dry dock work on the Military Sealift Command's dry cargo/ammunition ship USNS Carl Brashear (T-AKE 7). Optional work under this contract, if exercised by the Navy, could increase the value of this contract to as much as $12.3 million, and extend it past its expected Sept. 25, 2013 completion date.

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More than two years ago, I identified 10 companies that I would be putting $40,000 of my own retirement money behind. This was, has been, and will continue to be my way of helping the world to invest better.

Since then, that sum of money has grown to $53,880 -- a 34.7% increase, and $3,280 better than if I had just invested the money in the S&P 500.

Every month, I look over these stocks to see which three are tempting. I call these my "Buy Now" stocks because I think they're pretty good deals.

Read the chart below to see how the whole portfolio has performed, check out my best buys and, at the end, I'll offer up access to a special free report.

Company

Publication Date

Change

Vs. S&P 500 (percentage points)

Google (NASDAQ: GOOG  )	6/26/11	82.4%	53
PriceSmart	6/28/11	76.5%	49
Baidu (NASDAQ: BIDU  ) *	9/15/12	(14.6%)	(40)
Intuitive Surgical	7/25/11	26.2%	3
National Oilwell Varco	7/28/11	(13.9%)	(41)
Coca-Cola	6/21/11	28%	0
Whole Foods	7/5/11	67%	43
Amazon.com (NASDAQ: AMZN  )	7/12/11	31.5%	6
Apple (NASDAQ: AAPL  )	6/30/11	20.7%	(5)
Johnson & Johnson	8/1/11	43%	14
Total		34.7%	8.2

Source: YCharts. Prices include dividends reinvested and are accurate as of market open, July 1, 2013. *BIDU replaced ATVI on Sept. 15, 2012. Returns reflect combined positions.

Although the portfolio is actually down from last month, it significantly increased its lead over the S&P 500. And with the market down recently, there are deals to be had. Below are my three favorites.

Apple
With the price of Apple stock now sitting below $400, there's a lot of pessimism priced in. I don't fault the market for pricing Apple so low right now compared to other technology heavyweights -- it simply doesn't have the same competitive advantages as Google does with its search engine or Amazon does with its network of fulfillment centers.

Add into the fray the fact that Apple hasn't come out with any new breakthrough technologies since Steve Jobs passed, and it makes sense the stock is down more than 40% since last September.

But two things could change this course. First, if Apple were to come out with a new device -- as CEO Tim Cook keeps promising -- it would reassure investors that the company still has its innovative edge. And second, because of recent changes in how it spends its money, I'm relatively certain that Apple is purchasing backs millions of dollars of its shares while prices are so low -- a move that benefits shareholders.

Baidu
Another month gone by, another chance for Baidu shareholders to bemoan the stock's perplexing stagnation. There's no doubt that earnings growth is slowing considerably for China's largest search engine, as it faces the three-headed dragon of competition from Qihoo 360, shrinking margins while it builds out its mobile advertising strategy, and a stalling Chinese economy.

But all of these factors aren't as devastating as I think they could be. Sure, they might stop Baidu from appreciating another 1,000% as it did between 2009 and 2012, but that doesn't mean there's not still tons of room for growth. Chinese citizens are still coming online by the hundreds of millions. Baidu still has the dominant market share. Keep your eyes peeled to see what management has to say when earnings come out at the end of the month.

Google
Yes, Google stock has been on a tear recently -- up 50% in the past year.  And, yes, shares are now trading hands for more richly valued 26 times earnings.  But I simply think Google's best days are still ahead of it.

Google's leadership and culture of innovation are factors that can't really be quantified. The company's "20% time," which allows employees to spend a fifth of their working hours on independent projects, has yielded amazing results, and I don't see that changing anytime soon.

With global Internet usage continuing to rise, a dominant market share, an Android system that's on fire, and several periphery revenue channels coming online (e.g., YouTube), Google stock is a good buy for long-term, buy-to-hold investors.

Just getting started?
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10 Best Penny Stocks To Buy For 2014

The Future of Your Car's Entertainment: Ford Sync vs. Apple's iOS in the Car

The following video is from Friday's installment of the Motley Fool's Weekly Tech Review, in which host Chris Hill, and analysts Eric Bleeker and Jason Moser take a look at the biggest stories driving the tech sector this week.

While much ado has been made about the battle for your living room among the tech giants, your car is a battleground often overlooked by investors, and the competition is heating up. In this segment, Eric discusses how including cars in Apple's (NASDAQ: AAPL  ) iOS or Google's (NASDAQ: GOOG  ) Android ecosystems could keep the technology from becoming outmoded longer than if automakers make their own proprietary in-car systems. He also discusses which automakers are already on board with the idea, and why some holdouts such as Ford (NYSE: F  ) could be making a big mistake.

The full video is available here.

It's incredible to think just how much of our digital and technological lives are almost entirely shaped and molded 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.

The relevant video segment can be found between 0:00 and 4:06.

Wednesday's Top News Headlines

Here are today's top news headlines from Fool.com. Check back throughout the day as this list is updated, and follow us on Twitter at TMFBreaking.

Pentagon Hands Out $880 Million-Plus in New Contracts Tuesday

DISH Brushes Off Sprint Lawsuit As a Diversion

US Bancorp Raises Common Stock Dividend 18%

Duke Energy Elects New President and CEO

Jamba Shareholders Finish Converting Preferred Shares

Gulf Keystone Petroleum Drilling New Shaikan Well

DISH Bowing Out to SoftBank on Sprint Deal

Tesla Issues Partial Recall of Model S

General Dynamics Splits $94 Million Flare-Round Contract

Cyprus Seeks Help From Creditors for Troubled Bank

Netflix to Bring Its Streaming Service to the Netherlands

Alcoa Expands Aluminum-Lithium Production

Boeing to Help Embraer Market New Tanker Aircraft

TripAdvisor Acquires GateGuru App

Fifth Third Raises Dividend 9%

Top China Companies To Buy For 2014

American Capital Mortgage Slices Dividend 11%

Teva Settles Legal Dispute Over Executive Compensation

Crude Oil and Gasoline Inventories Increase

Fed to Keep Rate Near Zero; Bernanke Forecasts Bond-Buying Slowing

Fed Expects Faster GDP Growth in 2014, Unemployment Rate Improvements

SodaStream Buyout Chatter Keeps On Popping

Things continue to get bubbly at SodaStream (NASDAQ: SODA  ) .

The stock hit a fresh 52-week high today -- closing in on its all-time high set two summers ago -- on reports of canceling an upcoming conference presentation.

CNBC's Herb Greenberg is tweeting that SodaStream shares are popping as word spreads that SodaStream won't be appearing as originally scheduled at Oppenheimer's 13th Annual Consumer Conference in two weeks.

In a statement to StreetInsider.com, SodaStream President Yonah Lloyd explains that SodaStream is coming off its successful investor day last month and recent marketing presentations by Lloyd in the Northeast, so heading out to Boston to present at the conference on June 25 would be overkill.

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It's clear what the market's thinking.

Speculators are betting that there's some meat to the story that broke in Israeli's Calcalist daily business newspaper last week, citing an unnamed source that claimed that PepsiCo (NYSE: PEP  ) made a $2 billion unsolicited offer to acquire the company. SodaStream was reportedly trying to see if there was any rival interest from Coca-Cola (NYSE: KO  ) before weighing PepsiCo's proposal.

Why speak at a conference if it's going to be bombarded with questions that it can't answer? Why present if it's already in play?

Investors may relish the new highs, but the news will clearly make SodaStream a more volatile investment in the near term. As the chatter fizzles -- and that's what happens more often than not -- SodaStream shares will retreat. After all, what would Coke or Pepsi do with SodaStream? An acquisition of SodaStream is feasible, but not at the hands of the two companies that stand to lose the most if making soda at home becomes even more popular than it is right now. They have bottlers and high-margin syrup sales to protect. Why go after a fringe player that commands less than 1% of the market if it sends the wrong message to folks consuming Coke and Pepsi products in bottles and cans and fountain sales today?

It's a shame that SodaStream has become a hype play, because it's really in much better shape than it was when it last traded this high nearly two years ago. SodaStream's generating far more revenue and earnings. The model has been validated in dozens of countries as the spike in consumables proves that folks are actually using these beverage systems.

Until the fizz goes flat, SodaStream will be a tricky stock to lasso. Hopefully, when it all settles, investors will remember that SodaStream is an attractively priced company making a dynamic product that's gaining ground. The rumor will likely prove to be rubbish, but SodaStream is definitely not.

Pop star
SodaStream's carbonation technology sounds simple, but this razor-and-blade company offers an intriguing opportunity for growth that could very well disrupt the soda industry. The Motley Fool's premium report on SodaStream explains the opportunities as well as the risks in the company. The report comes with a year's worth of updates, so just click here to get started.

Ex-employees: Madoff and aide ran scam alone

NEW YORK – Lawyers for five ex-employees of Bernard Madoff opened their defense case Thursday by symbolically trying to give the infamous Ponzi scheme mastermind the trial he never got before pleading guilty and going to prison.

Responding to prosecution arguments that Madoff alone couldn't have kept the multibillion-dollar scam running for decades, the attorneys portrayed him as a charismatic pathological liar who duped fellow Wall Street titans, government regulators and thousands of investors.

He did have help, but it wasn't the five former staffers whose trial opened this week, the attorneys argued. Instead, they depicted a former Madoff top lieutenant as playing Mini Me to the disgraced financier's Dr. Evil — expected star prosecution witness Frank DiPascali.

"This is a man that had a genius, an utter genius at manipulating," Eric Breslin, defense counsel for JoAnn Crupi, said of Madoff. "Who did he fool? The better question is, who did he not fool?"

EARLIER: Prosecutors' opening statement

Defense lawyers argued that Crupi and the four former co-workers charged with conspiracy and fraud numbered among the thousands of investors, charities, celebrities and financial institutions victimized by the fraud that ran up an estimated $19 billion in losses.

They said the defendants, like many other former Madoff staffers, appeared to have been hired because they lacked extensive experience with securities industry norms and regulatory requirements. That enabled Madoff and DiPascali, Madoff's former chief financial officer, to mold them to carry out the work of what was touted as a highly successful securities investment business but was actually a massive scam.

"They wanted a pawn," argued Larry Krantz, the attorney for former Madoff computer programmer George Perez, 47.

Daniel Bonventre, 66, a former Madoff manager, "did not know about the Ponzi scheme" and never intended to harm anyone, said defense attorney Andrew Frisch. "Dan's principal job was to pro! tect customers in (Madoff's) broker-dealer business, and the evidence will show that's exactly what he did."

WHO'S WHO: A look at the former employees and their charges

Defense lawyer Roland Riopelle showed jurors electronic slides that argued prosecution evidence won't prove former Madoff assistant Annette Bongiorno, 64, "knew that she was helping anyone to commit a crime" or "ever intended to steal from Madoff's customers or anyone else, including the Internal Revenue Service."

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Bongiorno "thought all those years she was playing in the National League," said Riopelle. "She didn't know it was fantasy baseball."

Jerome O'Hara, 50, another former Madoff computer programmer, had no way of knowing that the electronic work he and Perez did helped perpetuate a fraud, said defense attorney Gordon Mehler.

But Madoff right-hand man DiPascali, 56, did know, the defense team argued. He allegedly relayed Madoff's instructions and ensured that lower-ranking employees carried out the orders.

Hoping to avoid a prison sentence similar to Madoff's 150-year term, DiPascali negotiated a cooperation agreement with federal prosecutors and provided evidence in a nearly five-year government investigation of the fraud.

Using the admitted perjurer as a government witness against the five former co-workers "is the equivalent of the Big Bad Wolf getting on the witness stand and condemning Little Red Riding Hood," argued Mehler.

The trial, expected to last as long as five months, is scheduled to resume Monday with testimony from the first prosecution witnesses.

China's Box Office To Surpass The U.S. By 2018, Says IMAX CEO

China's box office receipts will surpass that in the U.S. by 2018, and double the U.S. figure by 2025, said IMAX CEO Richard Gelfond at the 2013 National Committee on U.S. –China Relations Gala Dinner on Wednesday evening.

Gelfond's optimism has its roots in IMAX's rapid growth in China in recent years, as seen in the expansion of IMAX theaters from 22 in 2009 to 141 by the end of June. In late July, its long-term Chinese partner, Wanda Cinema Line Corporation, upgraded a 75-theater joint venture agreement with IMAX to between 115 and 195 theaters, and extended lease terms for new theaters from 10 years to 12. The Chinese government has also done it a big favor last year by allowing the import of an additional 14 foreign films in IMAX or 3D format, which Gelfond attributed partly to the lobbying efforts of his Chinese partners.

China's box office receipts have maintained higher than 30% annual growth for the past ten years and totaled $2.7 billion in 2012, according to the State Administration of Radio, Film and Television. That is roughly a quarter of domestic grosses in America, which grew only 5.9% last year, and makes China the world's second largest film market. More than half of the $2.7 billion came from foreign films, with three IMAX movies topping the popularity roster—an indication that the increasingly sophisticated Chinese consumers desire not simply more entertainment, but more world-class products, said Gelfond.

But don't assume that just means easy money for foreign film producers. China's business and political landscape is never easy to navigate, especially in the closely guarded and heavily censored film industry. Even for a China veteran like Gelfond, who has made regular visits to China since 1998, it is a "monumental challenge" to grasp how quickly, and in what ways, the landscape is evolving. "A lot of the old structures and old regulations are being replaced by new ones," Gelfond pointed out, "you have different constituencies with different views. He described his China experience as a stock market graph that "goes up over time overall," but is "a little bit like a roller coaster ride."

"You just have to be very patient," Gelfond said.

Young Workers Face Big Challenges in Saving for Retirement

Marcio Jose Sanchez/APLike many younger workers, 28-year-old Michael Maher, co-owner of Taylor Stitch, a San Francisco clothing retailer, says saving for retirement isn't a priority.

The current personal savings rate in the United States is not a number to inspire confidence. Yes, it has almost doubled in the past five years. However, the current rate remains only half what it was 50 years ago. Furthermore, not everyone is saving (baby boomers are more likely to have a retirement account than other generations). What is happening here? Is there a generational shift in savings tendencies, or is it simply an example of myopic vision in which people don't think about saving for retirement when it seems so far in the future? There is some evidence of a generational shift. Members of older generations are more likely to have retirement accounts. They are also more likely to have a longer time horizon for their investments than younger individuals. Despite this generational shift, younger generations actually need to save more than their parents. There are several problems that they face: Pensions on the decline: There has been a significant change in retirement benefits since the establishment of 401(k) plans in 1975. Whereas companies used to fund employees' retirement through pension plans, most now have plans that require active contributions from employees. The irony is that this change of funding from employer to employee is concurrent with the declining savings rate. Social Security: Since the Social Security Act was signed in 1935, life expectancy has risen and the number of workers per beneficiary has fallen. The full retirement age is already rising and there may be additional changes in order to keep the system solvent. Furthermore, Social Security was established as a safety net rather than as a total wage replacement vehicle. Although individuals with low earnings ($13,100 annual salary) will receive Social Security benefits equal to 89 percent of their wage, those at the top of the pay scale (over $200,000) will only receive a wage replacement rate of 20 percent from Social Security. For the average American, 40 percent of retirement income comes from Social Security. The propensity to save is established young: A study by David Whitebread and Sue Bingham, "Habit Formation and Learning in Young Children," shows that children learn (or fail to learn) habits from their parents and teachers at a young age. Although they may not understand financial concepts such as delay of gratification, they may learn habits of mind such as impulse control, persistence, and thinking outside the box. These skills can be critical as adults for balancing current expenditures with saving for a future retirement. Absence of savings: The average personal savings rate of 4.6 percent is just that -– an average. The disturbing statistic is the number of people with no savings. According to a Harris Poll taken in 2011, one-third of Americans have no retirement or personal savings. So the question is, "How much money should I be saving?" Obviously, this will vary from person to person, depending upon their expected retirement age, income level and wage replacement rate. A general rule of thumb is that retirement savings should be 10 percent to 13 percent of income. However, this is for an individual who starts saving in his early 20s. The longer a person waits to start, the harder the task becomes, not only because there are fewer years to save, but also because there are fewer years for the savings to grow. Thus, an individual who begins saving for retirement at age 35 to 45 must save 13 percent to 20 percent of their income and an individual who starts saving at age 45 to 55 must save 20 percent to 40 percent of their salary. Later savers are also more likely to have to delay retirement.

China Holiday Boosts ADRs

Top Gold Stocks To Invest In 2014

The National Day holiday, coupled with an extensive amount of growth in China's travel and tourism, helped this company's stock jump up last week, writes MoneyShow's Jim Jubak, also of Jubak's Picks.

The New York traded ADRs of China's Home Inns and Hotels Management (HMIN) have climbed 15.5% from September 24 to the close on October 11.

Part of the reason is a October 10 recommendation from Goldman Sachs that added the ADRs to its top pick list. And part of the reason is a huge surge in domestic travel during China's recently concluded National Day holiday week. (Home Inns and Hotels Management is a member of my Jubak's Picks portfolio.)

Goldman's call is based on a belief that China's economy is picking up speed again. As the economy recovers, tourism and business travel pick-up and budget chains, of which Home Inns and Hotels is the largest in China, see occupancy rates climb. That, in turn, pushes up the all-important RevPAR (revenue per available room) numbers.

But huge growth in travel and tourism during the National Day holiday also demonstrates the potential in China's domestic travel and hospitality sector. Tourism revenue climbed 21% to 223 billion yuan ($36.4 billion) during this year's National Day holiday from the same holiday in 2012, according to the China National Tourism Administration.

You didn't need a market researcher to see the trend during the October 1 to 7 holiday. Just counting heads would do. For example, almost one million people visited Beijing's top tourist sights on October 3 alone, with 175,000 crowding into the Forbidden City.

As of October 11, I'm raising my target price on Home Inns and Hotels to $43 an ADR by March 2014, from my recent target of $37.

Full disclosure: I don't own shares of any of the companies mentioned in this post in my personal portfolio. When in 2010 I started the mutual fund I manage, Jubak Global Equity Fund, I liquidated all my individual stock holdings and put the money into the fund. The fund did not own shares of Home Inns and Hotels Management as of the end of June. For a complete list of the fund's holdings as of the end of June see the fund's portfolio here.

Is the housing market making a major shift?

The real estate market has been one of the strongest pillars of the economy following the greatest financial downturn since the Great Depression. Amid low interest rates and a great deal of intervention from policymakers, home buyers received an added incentive to purchase a home. Meanwhile, sellers enjoyed low inventory levels and rising prices. However, a new survey finds that sellers might be losing their control on the market.

In the third quarter, 72% of real estate agents said now is a good time to sell a home, down from 86% in the previous quarter, and the first drop of the year, according to Redfin, an online estate brokerage. On the other side of the closing table, 55% of agents said now is a good time to buy, up from 46% at the beginning of the year. Thirty percent of agents also said that sellers are having difficulties getting their home to appraise for the contract purchase amount.

"At the end of this summer, you could smell the rubber on the road from buyers hitting the breaks," said Redfin San Diego agent Sara Fischer. "The cutthroat competition and frenzied demand has relaxed considerably."

Although interest rates are still low on a historical basis, the recent rise in home prices is affecting home affordability. In the second quarter, 69.3% of new and existing homes sold were affordable to families earning the U.S. median income of $64,400, according to the National Association of Home Builders. That is down from 73.7% in the first quarter and is the first reading below 70% since late 2008.

In August, home prices across the nation increased on a year-over-year basis for the 18th consecutive month. According to CoreLogic, a property information and analytics provider, home prices jumped 12.4% in August from a year earlier. In fact, home prices have logged double-digit gains for seven straight months. Home prices are still 17.1% below their bubble peak in April 2006, but every state posted an annual increase in August.

GOLD: Good for the global economy?

Going forward, the survey from Redfin finds that only 5% of agents believe home prices will rise a lot in the next 12 months, down from 44% at the beginning of the year. Meanwhile, 11% of agents believe prices will drop a little over the next year, compared to only 4% in the second quarter.

POLL: Congress less favorable than dog waste and cockroaches

Wall St. Cheat Sheet is a USA TODAY content partner offering financial news and commentary. Its content is produced independently of USA TODAY.

The Best Stock in the Aircraft Leasing Industry

To cut costs and keep their options open, more airlines are choosing to lease planes, rather than buy them. This strategy helps airlines avoid the expenses of actually owning jets, and gives them more freedom to change the size and makeup of their fleets as needed. In the booming aircraft leasing industry, Air Lease (NYSE: AL) looks like your best investment option, for five compelling reasons.

1. A young fleet
One of the characteristics of the aircraft leasing industry is the regular churning of aircraft. As new aircraft with higher fuel efficiency and capacity are introduced in the market, aircraft companies prefer to replace the old fleet with the new ones. A relatively younger fleet would allow the company to charge more for leasing those planes.

Air Lease's fleet has a weighted average age of 3.5 years, compared to 10.7 years for Aircastle (NYSE: AYR  ) and 5.1 years for AerCap Holdings (NYSE: AER  ) . As a result of this advantage, Air Lease is currently trading at a price-to-book value (P/BV) of 1.17, compared to 0.8 and 0.95 for Aircastle and AerCap Holdings, respectively.

2. A strong growth pipeline
Air Lease has a robust pipeline of 325 aircraft to be delivered over the next 10 years, at a cost of $23.4 billion. As these new aircraft come into operation, the resulting revenue and bottom-line growth will  likely translate into higher share value.

On the other hand, AerCap Holdings has a new aircraft pipeline of 44 aircraft with a total cost of $1.9 billion, while Aircastle does not have any new aircraft headed its way. Air Lease's more robust expansion plan gives it better odds of outperforming its peers.

3. High revenue visibility
As of the second quarter of 2013, Air Lease had an average remaining lease term of 7.1 years. This means the company has a good idea of what its revenue will look like for the next few years; unless a sharp economic downturn drives airline companies to cancel their lease contracts, Air Lease can count on that money coming in. In contrast, AerCap Holdings had a relatively higher lease term of 6.9 years, while Air Castle has a remaining lease term of only 4.7 years.

As Air Lease takes delivery of new aircraft for its fleet, and begins signing new leases for those jets, its average remaining lease term will increase, further boosting its exepected revenue and earnings. Better yet, those new aircraft will like have a higher annual lease rate than the relatively older ones. 

4. A comfortable debt position

All aircraft leasing companies have significant debt on their books, since they fund most of their purchases with debt. Aircastle scores higher its peers in terms of leverage, with a debt-to-EBITDA ratio of 5.2, compared to 6.9 and 7.3 for Air Lease and AerCap Holdings, respectively.

However, Aircastle has a higher cost of debt at 5.54%, compared to 3.53% of Air Lease and 3.6% for AerCap Holdings. As a result, the EBITDA interest coverage ratio for the company -- the ratio between the rough estimate of the cash it's bringing in and the annual cost of the paying the interest on its debt -- stands at 2.8, compared to 3.9 and 3.4 for Air Lease and AerCap Holdings respectively.

While leverage-backed growth is certainly not a negative in and of itself, Air Lease's comfortable debt position gives the company greater financial flexibility to fund its growth, compared to its peers.

5. Attractive valuations

For a company involved in the aircraft leasing industry, the best valuation parameters would be free cash flow and operating cash flow per share. The table below shows these trailing-12-month ratios for Air Lease and its competitors. 

 Metric Air Lease Aircastle AerCap

Price/FCF	-18.2	-3.3	-3.8
Price/OCF	4.8	5.3	5.7

Source: Company reports.

Air Lease looks the most attractively valued in terms of Price/OCF. The Price/FCF metric per share is significantly negative for Air Lease, primarily due to its high level of investment -- it's plowing all its cash back into growing its operations. This is also positive, since its high capital expenditures are likely to translate into robust cash flows in the future.

Conclusion

The airline industry will continue to boom, and the air leasing players will be one of that trend's key beneficiaries. Air Lease's making big investments now to capitalize on that boom, and right now, it looks more appealing than its two biggest rivals.

Best Performing Companies To Buy For 2014

Bull JACK 071713 rev1Jackin the Box JACK wasa momentum play last year and today it returnsas the Bull of the Day, albeit a unique story that may have slightlyhigherrisk due to some reorganization within the company after noticing acontinuousdecline in traffic due to macro concerns and conservative spending incertain arearestaurants.

After an extensive operational reviewand financial analysisof its Qdoba Mexican restaurants, Jack in the Box has made the decisionto close67 (10% of total) underperforming restaurants under its Qdoba MexicanGrillbrand by the end of fiscal 2013 (ending Sept 29, 2013).

There are currently 647 Qdobarestaurants worldwide, which includes340 company-owned units. When all is said and done, the company expectstoincur about $28 million as impairment charges related to the closingsandapproximately $12 million in lease-related costs during fiscal 2013.

Management believes that since therestaurants were notdoing well, closing them would improve the company�� future profit andenhancethe cash flow position.

Best Performing Companies To Buy For 2014: Naturally Advanced Technologies (NAT.V)

Crailar Technologies Inc. engages in the development and execution of CRAiLAR and CRAiLEX bast fiber processing technologies. The company focuses on providing textile, plastics, composite, and pulping solutions through the process of converting industrial hemp, flax, and other bast fiber crops through its patented technologies. It is involved in developing CRAiLEX advanced material technologies for processing of cellulose-based fibers in Pulp and Paper, dissolving pulp, and performance apparel industries; and CRAiLAR fiber technologies for applications in the textile industry. The company was formerly known as rally Advanced Technologies Inc. and changed its name to Crailar Technologies Inc. in October 2012. Crailar Technologies Inc. was founded in 1998 and is headquartered in Victoria, Canada.

Best Performing Companies To Buy For 2014: Nico Steel Holdings Limited(5GF.SI)

Nico Steel Holdings Limited, an investment holding company, provides metallurgical solutions. It provides metal slitting services; ferrous and non-ferrous raw materials in strip-in coils for the stamping and metal fabricating industries; metal shearing services for ferrous and non-ferrous raw materials in sheet form; and electro-plating process, material surface treatment, and chemistry blending for electronic products. The company serves consumer electronics, telecommunications, and the hard disk drive industries. It operates primarily in Singapore, the People?s Republic of China, Malaysia, and Thailand. The company is based in Singapore. Nico Steel Holdings Limited is a subsidiary of D.S.A.G Investment Pte Ltd.

5 Best Financial Stocks To Own For 2014: Fisher(j)

James Fisher and Sons plc, together with its subsidiaries, provides marine services and specialist engineering services in the United Kingdom, Ireland, Norway, and internationally. The company operates through four segments: Specialist Technical Services, Offshore Oil Services, Defence, and Marine Oil. The Specialist Technical Services engages in the hire and sale of large scale pneumatic fenders; provision of ship to ship transfer services; and design and supply of systems for monitoring strains and stress in structures and equipment. This segment also offers non-destructive testing services; and design, engineering, and manufacturing services for the nuclear decommissioning industries. The Offshore Oil Services segment manufactures and rents equipment for the offshore oil and gas industry; and designs and manufactures specialist down hole tools and equipment for extracting oil. This segment also offers related specialist labor, such as cranes, winches and pumps to the of fshore sector, wind farms, and for subsea operations. The Defence segment designs, constructs, and operates submarine rescue vehicles and remotely operated vehicles; and operates surface ships. It offers marine services to the Ministry of Defence (MoD) and other navies, including the United Kingdom; maintenance, asset management, and consultancy services; military strategic sealift capability through its operation of six roll on ? roll off vessels for the MoD; and submarine rescue services to the government of Singapore. The Marine Oil segment is involved in the sea transportation of clean petroleum products in north west Europe; and wharf operations. The company was founded in 1847 and is headquartered in Barrow-in-Furness, the United Kingdom.

Best Performing Companies To Buy For 2014: Wonder Auto Technology Inc.(WATG)

Wonder Auto Technology, Inc., through its subsidiaries, engages in the design, development, manufacture, and marketing of electrical parts, suspension products, and engine components. It offers starters, alternators, engine valves, and tappets in the People?s Republic of China, South Korea, and Brazil, as well as airbags and seatbelts in People?s Republic of China. The company?s products are primarily used in a range of passenger and commercial automobiles. It also manufactures and sells rectifier and regulator products for use in alternators; and various rods and shafts for use in shock absorbers, alternators, and starters. Its customers include automakers, engine manufacturers, and auto parts suppliers. Wonder Auto Technology, Inc. is headquartered in Jinzhou City, the People?s Republic of China.

Best Performing Companies To Buy For 2014: First Commonwealth Financial Corporation(FCF)

First Commonwealth Financial Corporation operates as the holding company for First Commonwealth Bank that provides consumer and commercial banking services to individuals and small and mid-sized businesses in central and western Pennsylvania. The company offers personal checking accounts, interest-earning checking accounts, savings accounts, health savings accounts, insured money market accounts, debit cards, investment certificates, fixed and variable rate certificates of deposit, and IRA accounts. It also provides secured and unsecured installment loans, construction and mortgage loans, safe deposit facilities, credit lines with overdraft checking protection, and student loans, as well as Internet and telephone banking, and automated teller machine services. In addition, the company offers commercial banking services, including commercial lending, small and high-volume business checking accounts, on-line account management services, ACH origination, payroll direct deposi t, commercial cash management services, and repurchase agreements. Further, it provides various trust and asset management services, as well as a complement of auto, home, business, and term life insurance. Additionally, the company offers annuities, mutual funds, stock, and bond brokerage services through an arrangement with a broker-dealer and insurance brokers. It operates 115 community banking offices in western Pennsylvania and 2 loan production offices in downtown Pittsburgh and State College, Pennsylvania. The company was founded in 1982 and is headquartered in Indiana, Pennsylvania.

Advisors' Opinion:

• [By Paul McWilliams]

  Trailing 12-month free cash flow (FCF) was $1.58 per fully diluted share, versus Cree's reported non-GAAP earnings of $1.32, and net cash per fully diluted share increased by $2.06 year-over-year.

• [By Ray Merola]

  Global recession notwithstanding, International Paper has re-imagined itself as a strong cash generator. I focus upon Free-Cash-Flow (FCF), thereby subtracting routine capital expenditures from Operating Cash. What remains is what Warren Buffett refers to as "Owner Earnings," or what is left over after a company has handled all aspects of running and maintaining its business.

Best Performing Companies To Buy For 2014: Copper Ridge Explorations Inc.(KRX.V)

Redtail Metals Corp. engages in identifying, acquiring, and developing copper, lead, and zinc mineral deposits in the Yukon, Canada. It principally focuses on the Clear Lake massive sulphide zinc-lead-silver project located in the Yukon and the Babine porphyry copper-gold project in British Columbia. The company was formerly known as Copper Ridge Explorations Inc. and changed its name to Redtail Metals Corp. on May 30, 2011. Redtail Metals Corp. was founded in 1983 and is headquartered in Vancouver, Canada.

Wells Adds $5.8M Morgan Stanley Team

Wells Fargo Advisors (WFC) said Friday that a group four advisors joined the broker-dealer in Woodbury, N.Y., from Morgan Stanley.

The group has more than $1 billion in assets and about $5.8 million in combined yearly fees and commissions, according to Wells Fargo. It includes advisors Robert Alpert, Charles Ladenheim, Robert Fusaro and Michael Montuori, who collectively have more than 80 years of industry experience, and five client associates.

“There are three qualities that we believe are most important in building success for our clients — trust, service and hard work,” said Robert Alpert, in a press release. “After much thought and consideration, we made the move to Wells Fargo Advisors because they understand our philosophy when it comes to building success for our clients and because we believe in the strength of the Wells Fargo brand.”

10 Best Gold Stocks To Watch Right Now

In early September, Wells added five advisors from UBS (UBS) and Morgan Stanley (MS) with a total of $966 million in client assets.

“The Alpert Group epitomizes the high character and deep commitment to their clients to which all financial advisors aspire,” said Woodbury complex manager Greg O’Keefe, in a statement. “It’s a privilege to welcome them to Wells Fargo Advisors, and we look forward to supporting them in their work of helping clients succeed financially.”

As of June 30, Wells Fargo had 18,608 registered reps, of which 15,268 are financial advisors, 2,930 are in-bank advisors and the remainder — 408 — work with clients via phone.

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Check out Americans Don't Know Who to Trust on Money Matters on ThinkAdvisor.

Stocks to Watch: J.C. Penney, Nike, Finish Line

Among the companies with shares expected to actively trade in Friday’s session are J.C. Penney Co.(JCP), Nike Inc. and Finish Line Inc.(FINL)

J.C. Penney’s offering of 84 million shares priced at a 7.4% discount to the retailer’s closing price on Thursday, raising more than $800 million. The department-store chain is seeing some improvement in sales but is still facing concerns from creditors, who worry that the retailer’s road ahead is uncertain. Shares fell 7.5% to $9.64 in recent premarket trading, in line with the offering’s $9.65 price.

Nike's(NKE) fiscal first-quarter earnings rose 38% as its namesake brand posted revenue growth and wider margins. Shares rose 6.6% to $74.95 premarket as the athletic-gear company’s earnings beat Wall Street estimates.

Finish Line’s fiscal second-quarter earnings rose 6.1% as the athletic-gear retailer recorded a double-digit revenue increase. Shares were up 8.8% to $24.36 in light premarket trading as results beat analyst expectations.

Hot Value Stocks For 2014

Accenture(ACN) PLC’s fiscal fourth-quarter earnings rose 16%, mostly owing to a lower effective tax rate, while the global consulting and outsourcing firm also recorded improved revenue and margins. Shares fell 3.2% to $73.42 in premarket trading as the company forecast current-quarter revenue slightly below analysts’ estimates.

Nektar Therapeutics sa(NKTR)id its treatment for moderate to severe chronic pain in patients with osteoarthritis of the knee failed to meet its primary endpoint in a Phase 2 study. Shares fell 22% to $10.78 premarket.

Toray Industries Inc.(3402.TO), the global market leader in carbon fiber, agreed to buy smaller rival Zoltek Cos.(ZOLT) in a deal valued at $584 million. The Japanese synthetic-fiber maker offered $16.75 a share, a 9.5% discount to Thurday’s close. Zoltek has struggled amid what it has called a cyclical downturn in the wind energy market. Zoltek shares dropped 10% to $16.58 in light premarket trading.

AZZ Inc.'s(AZZ) fiscal second-quarter earnings rose 3.1%, but the company warned that delays in new construction for domestic and international nuclear-power projects and the delayed start for the “petrochemical renaissance” in the Gulf Coast have resulted in a significant portion of its backlog in the electrical and industrial segment. It lowered its outlook for the year and projected weak results for the current quarter.

Electronic Arts Inc.(EA) said it is canceling its popular college-football videogame next year, amid uncertainty about the future of the franchise and the continued legal acrimony surrounding college sports.

Entropic Communications Inc.(ENTR) said its board has authorized a $30 million share-repurchase program. The chip maker recently had a market capitalization of $394.1 million, according to FactSet.

Marathon Petroleum Corp.'s(MPC) board approved an additional $2 billion for stock repurchases, more than doubling the amount the refining-and-pipeline company has available for share buybacks.

Pet-products retailer PetSmart Inc.(PETM) boosted its quarterly dividend by 18% while announcing a plan to repurchase $535 million in shares.

RDA Microelectronics Inc.(RDA) has received a takeover proposal from Shanghai Pudong Science & Technology Investment Co. valuing the Chinese semiconductor company at $745 million. PDSTI, a state-owned investment company, offered to buy RDA for $15.50 an American depositary share, a 12% premium to RDA’s closing price Thursday. RDA shares were halted premarket ahead of the news.

Thor Industries Inc.’s fiscal fourth-quarter earnings jumped 31% as the recreational-vehicle maker reported a surge in sales. The company attributed the uptick in revenue to strong growth in motorized RV sales and more modest growth in towable RV sales.

Vail Resorts Inc.’s fiscal fourth-quarter loss widened as the ski-resort operator’s real-estate revenue shrank during the off-season quarter, missing top-line views.

10 Best Energy Stocks For 2014

For over 10 years, Argentina's government has held inconsistent energy policies in place. Residential and industrial electric and gas prices were well below marginal costs. As a result, companies such as Edenor (EDN) and its parent, the diversified energy holding Pampa Energia (PAM), lost millions. Low tariffs were simply not high enough to cover total operational costs.

But the outlook seems to be changing. After losing primary parliamentary elections about a month ago, the party that has been the major political force in Argentina since 2003 is preparing itself to leave the government as soon as 2015, when presidential elections are to be held. Moreover, the presidential candidates with real chances for 2015 are far more market-friendly than the current administration. Hence, energy policies should turn for the best, and companies such as Edenor, Pampa and even Transportadora de Gas del Sur (TGS), which is still making money despite low tariffs, should soar.

The question is: Should you go long now?

10 Best Energy Stocks For 2014: Spire Corporation(SPIR)

Spire Corporation develops, manufactures, and markets engineered products and services in the areas of PV solar, biomedical, and optoelectronics. It offers specialized equipment for the production of terrestrial photovoltaic modules from solar cells; and photovoltaic systems for application to powering buildings with connection to the utility grid, as well as supplies photovoltaic materials. It also provides surface treatments to manufacturers of orthopedic, cardiovascular, and other medical devices; and performs sponsored research programs into practical applications of biomedical and biophotonic technologies. In addition, the company offers custom compound semiconductor foundry and fabrication services to customers involved in biomedical/biophotonic instruments, telecommunications, and defense applications. Its services comprise compound semiconductor wafer growth, other thin film processes, and related device processing. Further, the company provides materials testing s ervices; and performs services in support of sponsored research into practical applications of optoelectronic technologies. The company offers its products primarily through its sales personnel in the United States, Europe, Africa, and Asia. Spire Corporation was founded in 1969 and is headquartered in Bedford, Massachusetts.

10 Best Energy Stocks For 2014: Caiterra International Energy Corp (CTI)

CaiTerra International Energy Corporation (Caiterra), formerly Cyterra Capital Corp., is a Canada-based company is engaged in the exploration and development of oil and gas properties. The Company�� project includes Faust, Amadou and Lac La Biche. On March 9, 2012, the Company completed its qualifying transaction with West Pacific Petroleum Inc. (WPP), pursuant to which the Company acquired all of WPP�� working interests in certain petroleum and natural gas leases and an oil sand lease in the Lac La Biche and Amadou Projects located in Alberta, Canada and certain other assets (the QT Oil and Gas Properties) from West Pacific Petroleum Inc. (WPP). On December 17, 2012 the Company acquired the Faust Property located just north of the Swan Hills oil field and south of the Town of Slave Lake.

5 Best Penny Stocks To Own For 2014: Ascent Solar Technologies Inc.(ASTI)

Ascent Solar Technologies, Inc., a development stage company, focuses on commercializing flexible photovoltaic (PV) modules using its proprietary technology. The company intends to manufacture roll-format PV modules that use copper-indium-gallium-diselenide (CIGS) on a plastic substrate. Its proprietary manufacturing process deposits multiple layers of materials, including a thin-film of CIGS semiconductor material on a plastic substrate and laser patterns the layers to create interconnected PV cells or PV modules through monolithic integration process. The company would serve the building applied photovoltaic (BAPV) and building integrated photovoltaic (BIPV) market, as well as specialty markets, such as defense, portable power, transportation, electronic integrated photovoltaic, and space and near-space. It has a strategic relationship with Norsk Hydro Produksjon AS to access customers in the BIPV/BAPV markets worldwide. Ascent Solar Technologies, Inc. was founded in 200 5 and is based in Thornton, Colorado.

10 Best Energy Stocks For 2014: BMB Munai Inc (BMBM)

BMB Munai, Inc., incorporated in July 1981, focuses on oil and natural gas exploration and production in the Republic of Kazakhstan (Kazakhstan) through a wholly owned operating subsidiary, Emir Oil LLP, (Emir Oil). Emir Oil holds an exploration contract that allowed exploration drilling and oil production in the Mangistau Province in the southwestern region of Kazakhstan. On February 14, 2011 the Company entered into a Participation Interest Purchase Agreement (the Purchase Agreement) with MIE Holdings Corporation (MIE), and its subsidiary, Palaeontol B.V (Palaeontol), pursuant to which the Company agreed to sell all of its interest in Emir Oil to Palaeontol (the Sale). On September 19, 2011, the Company completed the sale of all of its interests in Emir Oil LLP to a subsidiary of MIE Holdings Corporation. The operations of Emir Oil LLP is classified as discontinued.

The initial distribution amount was determined after giving effect to the estimated closing adjustments, Escrow amount, repayment of the Convertible Senior Notes, and after providing for the payment of or reserve for other anticipated liabilities and transaction costs. In February 2012 the Company entered into a Management Services Agreement (Services Agreement) with Lakeview International, LLC (Lakeview). Pursuant to the Services Agreement, Lakeview is providing management, administrative and support personnel and services to the Company.

10 Best Energy Stocks For 2014: Genesis Energy LP (GEL)

Genesis Energy, L.P. (Genesis) is a limited partnership focused on the midstream segment of the oil and gas industry in the Gulf Coast region of the United States, primarily Texas, Louisiana, Arkansas, Mississippi, Alabama, Florida and in the Gulf of Mexico. The Company has a portfolio of customers, operations and assets, including pipelines, refinery-related plants, storage tanks and terminals, barges and trucks. Genesis provides an integrated range of services to refineries, oil, natural gas and carbon dioxide (CO2) producers, industrial and commercial enterprises that use sodium hydrosulfide (NaHS) and caustic soda, and businesses that use CO2 and other industrial gases. The Company operates in three segments: Pipeline Transportation, Refinery Services, and Supply and Logistics. In August 2011, the Company acquired black oil barge transportation business of Florida Marine Transporters, Inc. In November 2011, it acquired a 90% interest in a 3,500 barrel per day refinery located in Converse County, Wyoming, including 300 miles of abandoned 3- 6 pipeline. On January 3, 2012, it acquired interests in several Gulf of Mexico crude oil pipeline systems, including its 28% interest in the Poseidon pipeline system, its 29% interest in the Odyssey pipeline system, and its 23% interest in the Eugene Island pipeline system. In August 2013, the Company announced that it has completed the acquisition of all the assets of the downstream transportation business of Hornbeck Offshore Transportation, LLC (Hornbeck).

Pipeline Transportation

The Company transports crude oil and carbon dioxide (CO2) for others for a fee in the Gulf Coast region of the United States through approximately 550 miles of pipeline. Its Pipeline Transportation segment owns and operates three crude oil common carrier pipelines and two CO2 pipelines. Its 235-mile Mississippi System provides shippers of crude oil in Mississippi indirect access to refineries, pipelines, storage terminals and other crude oil infrastructure ! located in the Midwest. Its 100-mile Jay System originates in southern Alabama and the panhandle of Florida and provides crude oil shippers access to refineries, pipelines and storage near Mobile, Alabama. The Company�� 90-mile Texas System transports crude oil from West Columbia to several delivery points near Houston. Its crude oil pipeline systems include access to a total of approximately 0.7 million barrels of crude oil storage.

The Company�� Free State Pipeline is an 86-mile, 20 CO2 pipelines that extends from CO2 source fields near Jackson, Mississippi, to oil fields in eastern Mississippi. It has a twenty-year transportation services agreement (through 2028) related to the transportation of CO2 on its Free State Pipeline.

Refinery Services

Genesis provides services to eight refining operations located in Texas, Louisiana and Arkansas, which operates storage and transportation assets in relation to its business and sell NaHS and caustic soda to industrial and commercial companies. The refinery services involve processing refiner�� sulfur (sour) gas streams to remove the sulfur. The refinery services also include terminals and it utilizes railcars, ships, barges and trucks to transport product. Its contracts are long-term in nature and have an average remaining term of four years.

Supply and Logistics

The Company provides services to Gulf Coast oil and gas producers and refineries through a combination of purchasing, transporting, storing, blending and marketing of crude oil and refined products, primarily fuel oil. It has access to a range of more than 250 trucks, 350 trailers and 50 barges with 1.5 million barrels of terminal storage capacity in multiple locations along the Gulf Coast, as well as capacity associated with its three common carrier crude oil pipelines.

Advisors' Opinion:

• [By Seth Jayson]

  Genesis Energy (NYSE: GEL  ) is expected to report Q2 earnings around July 9. Here's what Wall Street wants to see:

  The 10-second takeaway
  Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Genesis Energy's revenues will grow 30.3% and EPS will grow 52.2%.

• [By Eric Volkman]

  Genesis Energy (NYSE: GEL  ) unitholders will take home a bit more money in dividends compared with previous periods. The company has declared its latest disbursement, which is to be $0.51 per common unit, to be handed out on Aug. 14 to shareholders of record as of Aug. 1. That amount is a shade above Genesis Energy's previous distribution of $0.4975 per share, which was paid in mid-May.

• [By Matt DiLallo]

  Genesis Energy (NYSE: GEL  )
  The final stock to get on your dividend watchlist is Genesis Energy. The company's business is split between pipeline transportation, refinery services, and supply and logistics, as you can see on the slide below. In addition to the assets it already has on the books, Genesis has a number of projects in the pipeline to drive future growth. Genesis estimates that these projects will enable it to provide distribution growth to investors in the low double digits well into the future. Genesis has quite the history to back those estimates up as the company has 31 consecutive quarters of distribution increases, including 26 which were more than 10%. That's what makes this dividend-paying stock one to watch.

10 Best Energy Stocks For 2014: PROS Holdings Inc.(PRO)

PROS Holdings, Inc. provides pricing and margin optimization software worldwide. It offers PROS Pricing Solution Suite, a set of integrated software products that enables enterprises to apply pricing and margin optimization science to determine, analyze, and execute optimal pricing strategies through the aggregation and analysis of enterprise application data, transactional data, and market information. The PROS Pricing Solution Suite consists of Scientific Analytics to gain insight into pricing performance; Price Optimizer to institute control of pricing policies; and Deal Optimizer to provide guidelines, additional context, and information to sales force. Its products also include PROS Revenue Management Solution Suite, a suite of industry specific revenue management software products for the enterprises in travel target markets. The PROS Revenue Management Solution Suite comprises PROS Analytics to identify hidden revenue leaks and opportunities, PROS Revenue Management product to manage passenger demand with leg- or segment-based revenue optimization, PROS O&D products to manage passenger demand with passenger name record or PNR based revenue optimization, PROS Real-Time Dynamic Pricing product to determine the optimal prices, PROS Group Revenue Management product to manage group request and booking revenues, PROS Network Revenue Planning product to deliver network-oriented fare class segmentation, PROS Cruise Pricing and Revenue Optimization for customers to understand consumers price sensitivities and track competitor behavior, PROS Hotel Revenue Optimization product that helps customers to enhance pricing decision. In addition, the company provides pricing and implementation professional, and ongoing support and maintenance services. It serves customers in the manufacturing, distribution, services, hotel and cruise, and airline industries primarily through its direct sales force. The company was founded in 1985 and is headquartered in Houston, Texas.

10 Best Energy Stocks For 2014: GulfMark Offshore Inc.(GLF)

GulfMark Offshore, Inc. provides offshore marine services primarily to companies involved in the offshore exploration and production of oil and natural gas. The company?s vessels provide various services supporting the construction, positioning, and ongoing operation of offshore oil and natural gas drilling rigs and platforms, and related infrastructure. Its vessels transport drilling materials, supplies, and personnel to offshore facilities, as well as move and position drilling structures, and provide anchor handling and towing services. The company?s fleet includes anchor handling, towing, and supply vessels; fast supply vessels; platform supply vessels; specialty vessels, including towing and oil response; and small anchor handling, towing, and supply vessels. GulfMark also offers management services to other vessel owners. As of April 27, 2011, its active fleet included 74 owned vessels and 15 managed vessels. It primarily serves integrated oil and natural gas compani es, large independent oil and natural gas exploration and production companies working in international markets, and foreign government-owned or controlled oil and natural gas companies, as well as companies that provide logistics, construction, and other services to such oil and natural gas companies and foreign government organizations. The company primarily operates in the North Sea, Southeast Asia, and the Americas. GulfMark Offshore, Inc. was founded in 1996 and is based in Houston, Texas.

10 Best Energy Stocks 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.

10 Best Energy Stocks For 2014: Euro FX(P)

Ecopetrol S.A. operates as an integrated oil company in Colombia, Peru, Brazil, and the U.S. Gulf Coast. The company engages in the exploration, development, and production of crude oil and natural gas. As of December 31, 2010, its proved reserves of crude oil and natural gas consisted of 1,714.0 million barrels of oil equivalent. The company also transports crude oil, motor fuels, fuel oil, and other refined products, as well as mixture of diesel and palm oil. It owns transportation network consisting of 3,003 kilometers of crude oil pipeline directly, as well as an additional 2,178 kilometers of crude oil pipeline with its business partners; and 3,017 kilometers of multi-purpose pipelines for transportation of refined products from refinery to wholesale distribution points. As of the above date, Ecopetrol S.A. owned 58 stations with a nominal storage capacity of 19 million barrels of crude oil and 6 million barrels of refined products. In addition, the company owns and o perates refineries that produce a range of refined products, including gasoline, diesel, kerosene, jet fuel, aviation fuel, liquefied petroleum gas, sulfur, heavy fuel oils, motor fuels, and petrochemicals, including paraffin waxes, lube base oils, low-density polyethylene, aromatics, asphalts, alkylates, cyclohexane and aliphatic solvents, and refinery grade propylene, as well as provides industrial services to third parties. Further, it markets various refined and feed stock products, including regular and high octane gasoline, diesel fuel, jet fuel, natural gas, and petrochemical products. The company was formerly known as Empresa Colombiana de Petroleos and changed its name to Ecopetrol S.A. in June 2003. Ecopetrol S.A. was founded in 1948 and is based in Bogota, Colombia.

Advisors' Opinion:

• [By Paul Ausick]

  Pandora Media Inc. (NYSE: P)�reported second-quarter fiscal 2014 results after markets closed today. The Internet radio company posted adjusted diluted earnings per share (EPS) of $0.04 on revenues of $162 million, which includes $4.7 million in the company�� subscription return reserve. In the same period a year ago, the company reported adjusted EPS of $0.01 on revenues of $33.5 million. Second-quarter results also compare to the Thomson Reuters consensus estimate for EPS of $0.02 on $156.35 million in revenues.

• [By Associated Press]

  With iTunes, people buy songs or albums to download to computers, phones and tablets. But streaming services such as Pandora (NYSE: P  ) and Spotify have emerged as popular alternatives for listening to music. Pandora relies on its users being connected to the Internet at all times and plays songs at random within certain genres for free. The service is supported by advertising. It is the most similar service to the one Apple is expected to announce Monday. The difference is that Apple is expected to feature a seamless way for listeners to purchase songs through iTunes.

10 Best Energy Stocks For 2014: Phillips 66 (PSX)

Phillips 66 is a holding company. The Company is engaged in producing natural gas liquids (NGL) and petrochemicals. The Company operates in three segments: the Refining and Marketing (R&M) segment, the Midstream segment and the Chemicals segment. The Refining and Marketing (R&M) segment purchases, refines, markets and transports crude oil and petroleum products, mainly in the United States, Europe and Asia, and also engages in power generation activities. The Midstream segment gathers, processes, transports and markets natural gas, and fractionates and markets NGL, predominantly in the United States. The Chemicals segment manufactures and markets petrochemicals and plastics on a worldwide basis. The Company�� operations encompass 15 refineries with a gross crude oil capacity of 2.8 million barrels per day, 10,000 branded marketing outlets and 7.2 billion cubic feet per day of gross natural gas processing capacity.

R&M

The Company�� R&M segment primarily refines crude oil and other feedstocks into petroleum products (such as gasolines, distillates and aviation fuels); buys, sells and transports crude oil; and buys, transports, distributes and markets petroleum products. This segment also engages in power generation activities. R&M has operations in the United States, Europe and Asia.

The Company�� Bayway Refinery is located on the New York Harbor in Linden, New Jersey. The refinery produces a high percentage of transportation fuels, such as gasoline, diesel and jet fuel, as well as petrochemical feedstocks, residual fuel oil and home heating oil. Its Trainer Refinery is located on the Delaware River in Trainer, Pennsylvania. Refinery facilities include fluid catalytic cracking units, hydrodesulfurization units, a reformer and a hydrocracker. The Alliance Refinery is located on the Mississippi River in Belle Chasse, Louisiana. The single-train facility includes fluid catalytic cracking units, hydrodesulfurization units and a reformer and aromatics unit. Alli! ance produces a percentage of transportation fuels, such as gasoline, diesel and jet fuel. Other products include petrochemical feedstocks, home heating oil and anode petroleum coke.

The Lake Charles Refinery is located in Westlake, Louisiana. Its facilities include crude distillation, fluid catalytic cracker, hydrocracker, delayed coker and hydrodesulfurization units. The refinery produces a percentage of transportation fuels, such as gasoline, off-road diesel and jet fuel, along with home heating oil. It owns a 50% interest in Excel Paralubes, a joint venture which owns a hydrocracked lubricant base oil manufacturing plant located adjacent to the Lake Charles Refinery. The Sweeny Refinery is located in Old Ocean, Texas, approximately 65 miles southwest of Houston. Refinery facilities include fluid catalytic cracking, delayed coking, alkylation, a continuous regeneration reformer and hydrodesulfurization units. It produces a percentage of transportation fuels, such as gasoline, diesel and jet fuel. Other products include petrochemical feedstocks, home heating oil and coke.

The Company�� Merey Sweeny, L.P. (MSLP) owns a delayed coker and related facilities at the Sweeny Refinery. Fuel-grade petroleum coke is produced as a by-product and becomes the property of MSLP. The Company owns 50% operating interest in Sweeny Cogeneration, a joint venture, which owns a simple cycle, cogeneration power plant located adjacent to the Sweeny Refinery. The plant generates electricity and provides process steam to the refinery, and it also provides merchant power into the Texas market.

The Company�� Wood River Refinery is located in Roxana, Illinois, about 15 miles northeast of St. Louis, Missouri, at the convergence of the Mississippi and Missouri rivers. Operations include three distilling units, two fluid catalytic cracking units, hydrocracking, coking, reforming, hydrotreating and sulfur recovery. The refinery produces a percentage of transportation fuels, such as gasoline,! diesel a! nd jet fuel. Other products include petrochemical feedstocks, asphalt and coke. Its Borger Refinery is located in Borger, Texas, in the Texas Panhandle, approximately 50 miles north of Amarillo. The refinery facilities consist of coking, fluid catalytic cracking, hydrodesulfurization and naphtha reforming, in addition to a 45,000-barrels-per-day NGL fractionation facility. It produces a percentage of transportation fuels, such as gasoline, diesel and jet fuel, as well as coke, NGL and solvents.

The Ponca City Refinery is located in Ponca City, Oklahoma. It is a high-conversion facility, which includes fluid catalytic cracking, delayed coking and hydrodesulfurization units. It produces a range of products, including gasoline, diesel, jet fuel, liquefied petroleum gas (LPG) and anode-grade petroleum coke. The Billings Refinery is located in Billings, Montana. Its facilities include fluid catalytic cracking and hydrodesulfurization units. The Ferndale Refinery is located on Puget Sound in Ferndale, Washington, approximately 20 miles south of the United States-Canada border. Facilities include a fluid catalytic cracker, an alkylation unit, a diesel hydrotreater and an S-Zorb unit. The Los Angeles Refinery consists of two linked facilities located about five miles apart in Carson and Wilmington, California. The San Francisco Refinery consists of two facilities linked by a 200-mile pipeline. The Santa Maria facility is located in Arroyo Grande, California, about 200 miles south of San Francisco.

As of December 31, 2011, the Company marketed gasoline, diesel and aviation fuel through approximately 8,250 marketer-owned or -supplied outlets in 49 states. At December 31, 2011, its wholesale operations utilized a network of marketers operating approximately 6,875 outlets that provided refined product offtake from its refineries. In addition to automotive gasoline and diesel, it produces and markets aviation gasoline, which is used by smaller piston engine aircrafts. As December 31, 2011,! aviation! gasoline and jet fuel were sold through dealers and independent marketers at approximately 875 Phillips 66-branded locations in the United States.

The Company manufactures and sells automotive, commercial and industrial lubricants, which are marketed worldwide under the Phillips 66, Conoco, 76 and Kendall brands, as well as other private label brands. It also manufactures Group II and import Group III base oils and market both globally under the respective brand names Pure Performance and Ultra-S. It manufactures and markets graphite and anode-grade petroleum cokes in the United States and Europe for use in the global steel and aluminum industries. It also manufacture and market polypropylene to North America under the COPYLENE brand name. Its ThruPlus Delayed Coker Technology, a process for upgrading heavy oil into higher value, light hydrocarbon liquids, was sold in June 2011. In October 2011, it sold Seaway Products Pipeline Company to DCP Midstream. In December 2011, the Company sold its 16.55% interest in Colonial Pipeline Company and its 50% interest in Seaway Crude Pipeline Company. The Company manufactures and sells a variety of specialty products, including pipeline flow improvers and anode material for high-power lithium-ion batteries. Its specialty products are marketed under the LiquidPower and CPreme brand names.

The Company owns four refineries outside the United States: the Humber Refinery, Whitegate Refinery, Melaka Refinery and Wilhelmshaven Refinery. The Humber Refinery is located on the east coast of England in North Lincolnshire, United Kingdom. It is an integrated refinery, which produces a high percentage of transportation fuels, such as gasoline and diesel. Humber�� facilities encompass fluid catalytic cracking, thermal cracking and coking. The refinery has two coking units with associated calcining plants, which upgrade the heaviest part of the crude barrel and imported feedstocks into light oil products and graphite and anode petroleum cokes.

!

Th! e Whitegate Refinery is located in Cork, Ireland. The refinery primarily produces transportation fuels, such as gasoline, diesel and fuel oil, which are distributed to the inland market, as well as being exported to Europe and the United States. It also operate a crude oil and products storage complex consisting of 7.5 million barrels of storage capacity and an offshore mooring buoy, located in Bantry Bay, about 80 miles southwest of the refinery in southern Cork County.

The Mineraloelraffinerie Oberrhein GmbH (MiRO) Refinery, located on the Rhine River in Karlsruhe in southwest Germany, is a joint venture in which it owns an 18.75% interest. Facilities include three crude unit trains, fluid catalytic cracking, petroleum coking and calcining, hydrodesulfurization units, reformers, isomerization and aromatics recovery units, ethyl tert-butyl ether (ETBE) and alkylation units. MiRO produces a percentage of transportation fuels, such as gasoline and diesel. Other products include petrochemical feedstocks, home heating oil, bitumen, and anode- and fuel-grade petroleum coke. The Wilhelmshaven Refinery is located in the northern state of Lower Saxony in Germany, and has a 260,000 barrels-per-day crude oil processing capacity.

As of December 31, 2011, the Company had approximately 1,430 marketing outlets in its European operations, of which approximately 900 were Company-owned and 330 were dealer-owned. It also held brand-licensing agreements with approximately 200 sites. Through its joint venture operations in Switzerland, it also has interests in 250 additional sites.

Midstream

The Midstream segment purchases raw natural gas from producers, including ConocoPhillips, and gathers natural gas through pipeline gathering systems. Its Midstream segment is primarily conducted through its 50% investment in DCP Midstream. DCP Midstream also owns or operates 12 NGL fractionation plants, along with propane terminal facilities and NGL pipeline assets. It has a 25% inte! rest in R! ockies Express Pipeline LLC (REX).

Chemicals

The Chemicals segment consists of its 50% investment in CPChem. As of December 31, 2011, CPChem owned or had joint-venture interests in 38 manufacturing facilities. CPChem�� business is structured around two primary operating segments: Olefins & Polyolefins (O&P) and Specialties, Aromatics & Styrenics (SA&S). The O&P segment produces and markets ethylene, propylene, and other olefin products, which are primarily consumed within CPChem for the production of polyethylene, normal alpha olefins, polypropylene and polyethylene pipe. The SA&S segment manufactures and markets aromatics products, such as benzene, styrene, paraxylene and cyclohexane, as well as polystyrene and styrene-butadiene copolymers.

Advisors' Opinion:

• [By Aimee Duffy]

  Phillips 66 (NYSE: PSX  ) and its master limited partnership Phillips 66 Partners (NYSE: PSXP  ) have made the headlines recently, because of how high PSXP climbed during its first day of trading. It isn't the first refiner to find success with an MLP spinoff -- Marathon Petroleum's (NYSE: MPC  ) spinoff�MPLX (NYSE: MPLX  ) is up more than 16% year to date -- and it doesn't look as if it will be the last. In this video, Fool.com contributor Aimee Duffy looks at Valero's (NYSE: VLO  ) recent affirmation of its plan to convert its logistics assets into an MLP.

• [By Dividend]

  Phillips 66 (PSX) has a market capitalization of $36.15 billion. The company employs 12,400 people, generates revenue of $182.922 billion and has a net income of $4.131 billion. Phillips 66�� earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $8.939 billion. The EBITDA margin is 4.89 percent (the operating margin is 3.63 percent and the net profit margin 2.26 percent).

• [By Claudia Assis]

  Shares of refiner Phillips 66 (PSX) �were among the day�� top losers, down 0.7%.