Madison Square Garden Stock Jumps As Los Angeles Clippers Fetch $2 Billion

The Dolan family, the controlling owners of publicly traded Madison Square Garden, are big winners in the sale of the Los Angeles Clippers for an NBA record price of $2 billion.

Yes, the New York Rangers are in the Stanley Cup Finals for the first time in 20 years, and the $2 million plus the hockey team nets on average from each  home playoff game will boost MSG's bottom line. But the main reason for MSG's surging stock is the sale of the Los Angeles Clippers by Donald and Rochelle Sterling to former Microsoft CEO Steve Ballmer for MSG's surging stock.

As this chart shows, shares of MSG, the company that owns the hockey team, the NBA's New York Knicks and Madison Square Garden, underperformed the overall stock market as the Rangers advanced through the first three rounds of the playoffs. But the stock price for MSG is up 3% in the two days since I wrote that the Clippers would fetch close to $2 billion.

This is a sign that at least for now investors believe the $2 billion price tag for the Clippers will rub off on the rest of sports. Or at least other big market basketball teams.

 

5 Stocks Rising on Unusual Volume

DELAFIELD, Wis. (Stockpickr) -- Professional traders running mutual funds and hedge funds don't just look at a stock's price moves; they also track big changes in volume activity. Often when above-average volume moves into an equity, it precedes a large spike in volatility.

>>5 Stocks Insiders Love Right Now

Major moves in volume can signal unusual activity, such as insider buying or selling -- or buying or selling by "superinvestors."

Unusual volume can also be a major signal that hedge funds and momentum traders are piling into a stock ahead of a catalyst. These types of traders like to get in well before a large spike, so it's always a smart move to monitor unusual volume. That said, remember to combine trend and price action with unusual volume. Put them all together to help you decipher the next big trend for any stock.

>>5 Stocks Set to Soar on Bullish Earnings

With that in mind, let's take a look at several stocks rising on unusual volume today.

Shenandoah Telecommunications

Shenandoah Telecommunications (SHEN), with its subsidiaries, provides integrated voice, video and data communications services to end-user customers and other communications providers. This stock closed up 3.9% at $19.81 in Wednesday's trading session.

Wednesday's Volume: 245,000

Three-Month Average Volume: 64,788

Volume % Change: 300%

>>5 Stocks Under $10 Set to Soar

From a technical perspective, SHEN jumped higher here right off its 50-day moving average of $18.97 with strong upside volume. This stock has been uptrending strong for the last month, with shares moving higher from its low of $17.06 to its intraday high of $19.85. During that move, shares of SHEN have been consistently making higher lows and higher highs, which is bullish technical price action. That move is starting to push shares of SHEN within range of triggering a near-term breakout trade. That trade will hit if SHEN manages to take out some near-term overhead resistance levels at $20.26 to its 52-week high at $21 with high volume.

Traders should now look for long-biased trades in SHEN as long as it's trending above its 50-day at $18.97 or above more support at $18.50 and then once it sustains a move or close above those breakout levels with volume that hits near or above 64,788 shares. If that breakout hits soon, then SHEN will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that move are $24 to $25.

AMC Network

AMC Network (AMCX) owns and operates several popular and award-winning brands in cable television, including AMC, IFC, Sundance Channel, WE tv and IFC Films. This stock closed up 1.3% at $66.41 in Wednesday's trading session.

Wednesday's Volume: 814,000

Three-Month Average Volume: 445,048

Volume % Change: 120%

>>5 Stocks Ready for Breakouts

From a technical perspective, AMCX trended modestly higher here back above its 50-day moving average of $66.06 with above-average volume. This stock recently pulled back sharply from its August high of $72.46 to its recent low of $61.05. Shares of AMCX found some buying interest right above its 200-day, and the stock has now rebounded sharply back above its 50-day. That move is now pushing shares of AMCX within range of triggering a near-term breakout trade. That trade will hit if AMCX manages to take out some near-term overhead resistance at Wednesday's high of $67.25 to more resistance at $68.41 with high volume.

Traders should now look for long-biased trades in AMCX as long as it's trending above $65 or $64.50 and then once it sustains a move or close above those breakout levels with volume that hits near or above 445,048 shares. If that breakout hits soon, then AMCX will set up to re-test or possibly take out its 52-weeek high at $72.46.

Alamos Gold

Alamos Gold (AGI), a gold mining company, engages in the development, exploration, mining, and extraction of precious metals, primarily gold in Mexico and Turkey. This stock closed up 7.7% at $16.89 in Wednesday's trading session.

Wednesday's Volume: 517,000

Three-Month Average Volume: 90,013

Volume % Change: 571%

>>5 Rocket Stocks to Buy as Mr. Market Climbs

From a technical perspective, AGI spiked sharply higher here right off its 50-day moving average of $15.13 with heavy upside volume. This marked the third day in a row that shares of AGI have seen strong upside volume flows. Shares of AGI are now quickly moving within range of triggering a major breakout trade. That trade will hit if AGI manage to take out Wednesday's high of $17 to $17.04 with high volume.

Traders should now look for long-biased trades in AGI as long as it's trending above its 50-day at $15.13 or above its 200-day at $14.50, and then once it sustains a move or close above those breakout levels with volume that's near or above 90,013 shares. If that breakout hits soon, then AGI will set up to re-test or possibly take out its next major overhead resistance levels at $19.79 to $20.61.

Xcel Energy

Xcel Energy (XEL) is engaged in the generation, purchase, transmission, distribution and sale of electricity and in the purchase, transportation, distribution and sale of natural gas. This stock closed up 3.1% at $27.94 in Wednesday's trading session.

Wednesday's Volume: 9.37 million

Three-Month Average Volume: 3.45 million

Volume % Change: 305%

>>5 Hated Earnings Stocks You Should Love

From a technical perspective, XEL bounced notably higher here right above some previous support at $26.86 with monster upside volume. This move pushed shares of XEL into breakout territory, since the stock took out some near-term overhead resistance levels at $27.87 to $27.81. Shares of XEL are now trending within range of triggering another big breakout trade. That trade will hit if XEL manages to take out both its 200-day moving average at $28.15 and its 50-day moving average of $28.46 with high volume.

Traders should now look for long-biased trades in XEL as long as it's trending above some key near-term support at $26.86 and then once it sustains a move or close above those breakout levels with volume that's near or above 3.45 million shares. If that breakout hits soon, then XEL will set up to re-test or possibly take out its next major overhead resistance levels at $29.75 to $30.

AngloGold Ashanti

AngloGold Ashanti (AU), a gold exploration, mining and marketing company, holds a portfolio of operations and projects on four continents. This stock closed up 8.9% at $14.30 in Wednesday's trading session.

Wednesday's Volume: 10.26 million

Three-Month Average Volume: 4.11 million

Volume % Change: 325%

>>5 Stocks Under $10 in Breakout Territory

From a technical perspective, AU exploded higher here back above its 50-day moving average of $13.41 with monster upside volume. This stock recently formed a double bottom chart pattern at $12.69 to $12.50. Following that bottom, shares of AU have started to rebound sharply higher and move within range of triggering a big breakout trade. That trade will hit if AU manages to take out some near-term overhead resistance levels at $14.95 to $15.23 with high volume.

Traders should now look for long-biased trades in AU as long as it's trending above its 50-day at $13.41 or above more support at $12.50 and then once it sustains a move or close above those breakout levels with volume that's near or above 4.11 million shares. If that breakout hits soon, then AU will set up to re-test or possibly take out its next major overhead resistance levels at $17 to $18, or even $19.

To see more stocks rising on unusual volume, check out the Stocks Rising on Unusual Volume portfolio on Stockpickr.

-- Written by Roberto Pedone in Delafield, Wis.

RELATED LINKS:

>>5 Stocks Under $10 Making Big Moves

>>Why Wall Street Got Apple Wrong

>>5 Breakout Trades to Take

Follow Stockpickr on Twitter and become a fan on Facebook.

At the time of publication, author had no positions in stocks mentioned.

Roberto Pedone, based out of Delafield, Wis., is an independent trader who focuses on technical analysis for small- and large-cap stocks, options, futures, commodities and currencies. Roberto studied international business at the Milwaukee School of Engineering, and he spent a year overseas studying business in Lubeck, Germany. His work has appeared on financial outlets including

CNBC.com and Forbes.com. You can follow Pedone on Twitter at www.twitter.com/zerosum24 or @zerosum24.

The top 5 reasons why you're broke

In the event of a financial catastrophe such as a job loss, would you be able to cover your bills and expenses for three months? What about six months? If you answered "no" to either of these questions, you fall into the same category as around half of Americans. According to a Bankrate survey, 55% of women and 45% of men do not have at least three months' worth of emergency savings.

The official poverty rate in the U.S. is 15%. That's 46.5 million people earning less than $11,670 per year ($972.50 per month) for single-person households. Families of four in this category are earning $23,850 or less annually.

Although many of the lower-income earners are among those who have no emergency savings and are in essence broke, they are not the only ones. Most Americans -- 76%, in fact -- live paycheck to paycheck. This category includes those across many income levels, particularly middle-income earners. Why is this? Why is the average consumer who is earning a middle-class income broke? Here are five reasons why.

1. Employment and earnings

In all likelihood, you're earning less than the middle-class members of some of the previous generations. A family that earns a median household income of $51,017 today is a fairly accurate representation of a middle class household in the United States. In 1969, a middle-class household earned $54,817 in today's money. In 1979, that number went up to $54,993 in today's money. By 1999, middle-class households were earning $59,758 in today's dollars — more than $8,700 per year more than they are making today.

In addition to the middle class earning less than it did in the past, the recent economic downturn caused a spike in unemployment in 2009, where rates reached 10% in October and then remained at 9% or above for the next 23 months. When there are that many people unable to find a job who are actively looking, many of them end up obtaining low-paying positions for which they are overqualified.

2. Prices

While you're earning less! , you're also paying more for the goods and services you purchase. A publication by Daily Finance compares prices between 1999 and 2009. A gallon of gas was $1.30 in 1999, and by 2009, that price went up to $2.56. Today, you pay an average price of $3.65 per gallon at the pump. For a McDonald's Big Mac, you'd shell out $2.50 in 1999 and today, you're looking at an average of around $4.60.

3. Lifestyle and overspending

Consumerism is such a strong ideology in today's society. One estimate indicates that 52% of Americans are spending more than they earn. The Bureau of Labor Statistics' consumer expenditure surveys reflects this sentiment. Annual expenditures exceed income across several locations, income levels, and demographics.

Each time the newest piece of technology hits the market, consumers rush out to purchase it. Wants have turned into perceived necessities, resulting in more spending and less savings.

4. Student loans

In addition to earning less and spending more, you may also begin your career in debt. Starting out behind, it may be difficult to get caught up while paying your loans on top of a home, vehicle, and all of your other expenses. Student loan debt in the U.S. adds up to a combined total of more than $1 trillion.

5. Credit and debt

Interest on revolving lines of credit may result in long-term high monthly payments. The result is you end up paying for a single credit card purchase or series of purchases for several years. As of late 2013, Creditcards.com reports the total revolving debt in the U.S. was around $860 billion, with the average cardholder owning 3.7 credit cards each.

So while you are earning less, spending more, and starting your adult life in debt, you are also borrowing additional funds at high interest rates just to get by – that is why you are broke.

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

GAO: Trusted-traveler programs are popular

Enrollment in trusted-traveler programs to win expedited processing at border crossings quadrupled during the last five years, according to a Government Accountability Office report Friday.

But Customs and Border Protection has had trouble keeping up with the applications, according to the 76-page report.

Global Entry, a program to expedite the return of air travelers from overseas, led the way by topping 1 million members by January, according to the GAO.

The other programs are Nexus with 950,393 members for crossing the northern border, Sentri with 369,745 members for crossing the southern border and Fast with 78,414 members among commercial truckers at northern and southern borders.

With nearly 1 million people entering land, sea and air borders each day, the advantage to the expedited programs is getting through customs and immigration lines faster.

Global Entry costs $100 for five years. Applicants provide biographical information and travel history for a criminal-background check, then fingerprints and an interview.

If successful, participants can swipe their passport at an airport kiosk, which digitally takes their customs declaration, and then skip the line processing hundreds of other people from the flight.

"Trusted travelers generally experience shorter wait times than regular travelers," the GAO said.

Customs and Border Protection calculated it saved $15.5 million in personnel costs at border inspection booths last year, according to Jim Crumpacker, director of Department of Homeland Security's office dealing with the GAO.

Of the 31 airports with kiosks, the biggest share of travelers using Global Entry are Houston's Bush and Raleigh-Durham at 5% and Chicago's O'Hare, Dallas/Fort Worth, Denver, Newark, Salt Lake City and Washington's Dulles at 4%.

Customs and Border Protection is also allowing citizens of Germany, Qatar, Panama and the United Kingdom to participate in Global Entry, and has agreements to include Israel and Saudi Arabi! a.

Trusted traveler programs have become popular. Applications grew to 895,830 last year from 233,833 in 2009, according to GAO.

Enrollments grew to 857,529 last year from 209,117 in 2009, GAO said.

The use of Global Entry kiosks nearly doubled to 1.9 million entries last year from 1.1 million in 2012. But there is room for growth, with 77 million entries from aboard at airports last year.

By August 2013, Customs and Border Protection had a backlog of 90,000 applications awaiting vetting and 33,000 applicants awaiting interviews. At that point, the agency reduced the maximum length of interviews to 15 minutes from 20.

The agency also eliminated interviews for renewals that didn't have any derogatory material against the applicant. One enrollment center holds group briefings for new members about how the programs work.

Ballmer has the money for the L.A. Clippers

SAN FRANCISCO — Steve Ballmer, the former CEO of Microsoft who is buying the Los Angeles Clippers for $2 billion, certainly has the money for the deal.

Ballmer was Microsoft's 30th employee, beginning at the company in 1980. He was Microsoft's CEO from 2000 until Satya Nadella stepped in earlier this year.

Word of Microsoft CEO Steve Ballmer's planned retirement sent shockwaves through the tech and business community. And on the Internet, users flocked to YouTube to relive the flamboyant CEO's most infamous moments.

As of Microsoft's proxy filed in October, Ballmer held 333.2 million shares. At Thursday's $40.34 close, his shares — 4% of Microsoft's shares — are worth more than $13.4 billion.

One thing Ballmer can expect is a lot of jokes on the theme of Clippy, Microsoft's much-derided animated assistant which was discontinued in 2004.

"New Clipper mascot!" multiple people tweeted.

CONFIRMED: #Clippy officially speaks as new @LAClippers mascot "It looks like you're rooting for a team, how can I help?"

— Vee! (@VLangs) May 30, 2014

Another making the rounds: "I see you're trying to run a basketball franchise, do you need help?" in the much-hated perky style of the Clippy animation. spouted as soon as any new action was undertaken on a PC running it.

Ballmer managed Harvard's football team while he was an undergraduate there, according to the Harvard Crimson.

However, according to a book published in 2000, Bad Boy Balmer: The Man Who Rules Microsoft, it wasn't because he liked football.

The author, Fredric Alan Maxwell, says instead it was part of a larger plan to get into Harvard's prestigious business school.

"He did some research and found the manager of the Harvard football team always seemed to be offered a place at the Harvard Business School the following year," Maxwell wrote. "Therefore, Steve Ballmer became equipment manager of the varsity football team"

Documents show another delayed GM recall

.

DETROIT — General Motors recalled a small number of Pontiac G6 midsize cars to fix a faulty brake light system in 2009, yet waited more than five years to call back over 2 million other cars with the same system, according to company documents filed with federal safety regulators.

The documents, filed Thursday, show that GM recalled about 8,000 Pontiacs from the 2005 and 2006 model years because the brake lights might not work when the driver stepped on the brake pedal. But the company didn't recall later-model G6s or the Chevrolet Malibu and Saturn Aura until three weeks ago. The cars are nearly identical.

GM says the problem has caused 13 accidents and 2 injuries. GM thought the addition of a lubricant would fix the problem in newer cars, but it proved insufficient. Dealers were made aware of the problem, but car owners weren't told directly. As a result, a potential safety problem went uncorrected for years.

The company waited to recall the other cars until this year because the problem didn't happen as frequently as it did in the 2005 and 2006 G6 models, spokesman Alan Adler said. "We were monitoring these vehicles and looking to see what was happening with them all along," he said. "We made a decision that we thought was appropriate."

In addition, the National Highway Traffic Safety Administration didn't pressure GM to recall the newer cars. It even closed an investigation into the matter in 2009 after GM announced the initial G6 recall.

The company says it has changed its criteria for recalling cars. It now issues recalls based on the severity of a safety problem rather than the number of warranty claims or complaints, Adler said.

It's another example of how GM previously resisted recalling cars and trucks to fix safety problems.

The company is facing investigations from Congress and the Justice Department over why it waited at least a decade to recall about 2.6 million older small cars to fix an ignition switch problem. The company says that prob! lem is linked to crashes that killed 13 people, but trial lawyers say the death toll is at least 60.

The problem can affect some of a car's other functions. If the cruise control is on, drivers may have to push harder on the brake pedal to get it to disengage, and the cars could be shifted out of "park" without the driver having a foot on the brake. Also, the cars' traction control, electronic stability control and panic braking assist features, all designed to prevent crashes or lessen their severity, could become disabled.

In total, the brake light recall covers 2.4 million G6, Malibu, Malibu Maxx and Aura models spanning model years 2004 through 2012, according to the documents.

GM has been checking into past safety issues and recalling cars with potential problems. The review has led to the recall of 13.8 million cars and trucks so far this year. That beats the full-year record of 10.75 million in 2004.

Diageo announces plan for new distillery in Ky.

LOUISVILLE, Ky. (AP) — Global liquor giant Diageo on Thursday announced plans to build a new distillery in Kentucky amid a global boom in American whiskey sales.

The U.K.-based company called the $115 million project about 30 miles east of Louisville a significant investment in the state's growing bourbon industry. It still needs approval from local government officials, but Diageo hopes to complete the project by the end of 2016.

A variety of current and future Diageo bourbon and whiskey brands would be distilled at the facility, with a production capacity of 750,00 9-liter cases per year.

"Diageo has a long tradition within the craft of whiskey-making, and we look forward to bringing this artisanship to the new distillery," said Diageo North America President Larry Schwartz.

Diageo's brands include Johnnie Walker, Smirnoff, Guinness, Bulleit Bourbon and George Dickel Tennessee Whisky. Global rival Brown-Forman, maker of Jack Daniel's Tennessee Whiskey, is headquartered in Louisville.

In the U.S., sales volume for bourbon and Tennessee whiskeys has grown 26 percent over the past decade, according to the Distilled Spirits Council, and industry group. Exports of U.S. whiskeys has grown to roughly $1 billion last year, more than double what it was a decade ago.

State and local officials expressed enthusiasm about the project that would create about 30 jobs for whiskey distillation and maturation, saying they look forward to working with the company as it expands its presence in Kentucky.

"Distilled spirits remain a marquee industry in the commonwealth, and Diageo's new distillery will ensure that even more Kentucky bourbon is enjoyed around the globe," said Gov. Steve Beshear.

State Sen. Paul Hornback, who represents the district, said it would be a "fantastic investment" for the community.

"We are thankful for the positive economic impact this will bring and are proud that bourbon, a signature industry of Kentucky, will now be made right here in She! lby County," Hornback said.

The proposed 300-acre distillery site would also include six barrel storage warehouses. Barrel storage has become a legal issue for Diageo in neighboring Tennessee, where the company has sued the state to halt the enforcement of a law requiring whiskey made there to be stored in-state.

Dickel said it stores all of its Tennessee Whisky at its distillery near Tullahoma, about 60 miles south of Nashville. But other products made there are stored at a company-owned distillery in Kentucky. The federal lawsuit claims that state law violates interstate commerce rights under the U.S. Constitution.

If the law isn't tossed out, the company said it would have to decide whether to expand storage capacity in Tennessee or reduce production of spirits other than George Dickel Tennessee Whisky at the distillery, which would likely lead to job cuts there.

Diageo spokeswoman Kristen Crofoot said Thursday's announcement was "unrelated" to the Tennessee litigation.

"Those warehouses will be for the product we make there," she said of the new facility.

Schelzig reported from Nashville.

PIMCO’s El-Erian Sees Tiny Taper at Fed Meeting, Yellen as Frontrunner

PIMCO’s Mohamed El-Erian says that he expects a drop — or taper — of about $10 billion to $15 billion in the level of the government’s monthly asset purchases when the Federal Open Market Committee meets Tuesday and Wednesday.

The Fed’s current leader, Ben Bernanke, is expected to step down in January, when his second term as chairman expires. A top candidate for the job, Larry Summers, withdrew his name for the post on Sunday amid growing opposition among Democrats.

“Suddenly, Janet Yellen has regained her status as frontrunner; that signals to the market more policy continuity, which the market takes well,” El-Erian (left), PIMCO CEO and co-CIO, said on CNBC early Monday. “The yield curve gets anchored, you get a bull steepener, the front end does well, repression of volatility, the equity market, the credit market like that, and [what] you get is a broad-based rally, and that’s what we’re getting this morning.”

(Other names batted around, observers say, include former Fed Vice Chairman Donald Kohn and former Treasury Secretary Timothy Geithner.)

Investors may enjoy the Yellen rally, but whoever is ultimately chosen for the post “won’t have as much room for maneuver as people expect,” El-Erian noted.

Over the next 12 months, the market expert predicts three things to happen at the Fed with respect to quantitative easing.

“First, they will taper. They’ll taper small to begin with, but they will taper,” he said, coming down from the current $85 billion-a-month bond-buying level.

Second, the Fed is “likely to favor the mortgage market, which means they’ll taper more with Treasuries in proportional terms,” El-Erian noted.

Third, he believes, the Fed will give itself “quite a bit of wiggle room” due to future uncertainly. In addition, it will “strengthen the forward guidance in order to minimize the impact on markets of the taper.”

Once this process is over, the PIMCO executive said, “I don’t think you’re going to see an increase in interest rates, because the economy remains weak. We’re nowhere near escape velocity.”

This week’s expected taper is not related to any declared “victory on the economy,” El-Erian says. “It’s because they’re worried about what Mr. Bernanke has called the costs and risks, the collateral damage, if you like, of using such a blunt instrument to impact markets.

Future Focus

While the Fed succeeded in “buying time for the system,” El-Erian explains, its approach has become increasingly ineffective: “You cannot repress interest rates forever in a modern market system without causing damage, and I think the Fed realizes that. That’s why it’s likely to engage on the taper.”

Bernanke’s replacement will have to wrestle with the question of rising interest rates and related matters in the medium term, experts say.

Sen. Sherrod Brown, D-Ohio, began circulating a letter in late July calling on President Barack Obama to appoint Yellen. It was signed by 20 Senate Democrats. More than half of the Democratic women in the U.S. House signed a separate letter requesting Yellen’s nomination.

On Sunday, a group of more than 450 economists sent a letter to Obama supporting Yellen in a campaign organized by the Institute for Women’s Policy Research. The list included Robert Shiller of Yale, Alan Blinder of Princeton, Lawrence Kotlikoff of Boston University, Alice Rivlin of Brookings, Christina and David Romer of UC Berkeley, and Joseph Stiglitz of Columbia.

A week ago, it was reported that Lael Brainard, under secretary for international affairs at the Treasury Department, is under consideration for a vacancy at the Federal Reserve.

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Check out these related stories on ThinkAdvisor:

New Hire Roundup: AIG Advisor Group Names Couch EVP of National Sales

This week in personnel announcements and new hires, AIG Advisor Group named Allison Couch executive vice president of national sales. Jason Stamm was named central region president for the Private Client Reserve of U.S. Bank, FNEX brought in Chris Nelson, Eric Wilkinson and Marcus Relthford and Milbank, Tweed, Hadley & McCloy LLP announced that it has hired Catherine Leef Martin.

Also, James Larson II went to Wealth & Pension Services Group, and Franklin Templeton welcomed Jason Colarossi.

Allison Couch Joins AIG Advisor Group

AIG Advisor Group has announced that Allison Couch will join June 2 as executive vice president, national sales, a newly created position. She will be based in New York and report to Erica McGinnis, president and CEO.

Couch began her career as a financial advisor and managing executive affiliated with Royal Alliance. After more than 10 years as a producing advisor, she became a vice president of business development for Royal Alliance, and then SVP and head of business development at FSC Securities. She subsequently held a variety of positions and spent several years at LPL Financial as SVP. Most recently she served as managing director, wealth management, for Cetera Financial Group.

Franklin Templeton Welcomes Colarossi

Franklin Templeton has announced the hire of Jason Colarossi as vice president and head of strategic accounts for its investment-only division in the U.S. He reports to Yaqub Ahmed, senior vice president and head of investment-only division-U.S., who oversees the firm’s retail defined contribution and variable annuity IO businesses.

A 17-year veteran in the asset management and DC industry, Colarossi most recently served as national account manager within JPMorgan's defined contribution investment solutions group. Prior to that, he held positions with Putnam Investments and the Bostonian Group.

Stamm Named Central Region President for Private Client Reserve

U.S. Bank Wealth Management announced that Jason Stamm was appointed regional vice president of the Private Client Reserve. He succeeds Mike Ott, who was recently named president of the Private Client Reserve of U.S. Bank. Stamm will be based in the Private Client Reserve’s headquarters office in Minneapolis.

With 21 years of financial services experience, Stamm has served with BMO Private Bank and its predecessors since 1996. In his most recent capacity as regional president, he led the business operations and talent integration for the Private Bank of BMO, Harris Bank and M&I in the north central region.

FNEX Welcomes Three

FNEX announced that it has hired Chris Nelson as the firm’s chief technology officer, and also added Eric Wilkinson and Marcus Relthford as vice presidents of business development in its sales division. Wilkinson will manage business development efforts based in Chicago and working across various states in the Northwest and upper Midwest; Relthford will manage business development efforts based in Cincinnati and working across the lower and south Midwest.

Nelson brings over 18 years of experience in technology, and joins from Delivra, where he was director of operations; he also spent many years there as director of information technology. Prior to Delivra, he held multiple roles at T2 Systems and Indiana Farm Bureau Insurance and earlier served as airborne communications operator for the U.S. Navy.

Prior to joining, Wilkinson was a financial advisor with Edward Jones. Previously he served as the chief operating officer with Grain/OTC/Options-Markets and vice president at Fed Fund Futures/Options.

Relthford served as vice president of institutional sales at Institutional Shareholder Services (ISS) prior to joining and covered markets in North America and EMEA. Before that he worked for the Montgomery County, Ohio, treasurer’s office and Scudder Private Investment Counsel.

Milbank Adds Martin

Milbank, Tweed, Hadley & McCloy LLP announced that Catherine Leef Martin has joined the firm as a special counsel in the alternative investments practice. She will be based in New York.

Martin, an Investment Company Act (1940 Act) and Advisers Act attorney, was previously counsel at Davis Polk in New York.

Wealth & Pension Services Group Adds Larson

Atlanta-based Wealth & Pension Services Group has announced that it has hired James Larson II as head of its new office in South Florida near West Palm Beach with the title of certified fund specialist.

Larson was formerly a vice president of investments with the Mutual Fund Store.

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Check out HighTower, Focus Add Wirehouse Advisors on ThinkAdvisor.

These 3 Dow Stocks' Huge Cash Hoards Make Them Much Cheaper Than You Think

Everyone wants to find a great stock that is trading at a bargain price. Some investors spend hours poring through data on hundreds of companies to find one standout stock to anchor a portfolio. But it might be far easier than you think to find your next great investment, especially if you start with the 30 stocks that make up the Dow Jones Industrial Average (DJINDICES: ^DJI  ) .

These companies generally exemplify the qualities we look for in great long-term investments: they're established market leaders with sustainable dividends and have put together decades of strong growth in all sorts of economic environments. Those qualities of size, strength, and stability also make many of these companies phenomenal at generating cash: 13 of the Dow's 30 components control nearly $700 billion in cash abroad, in addition to the billions they've got stashed right here at home. Cash comes in handy when a large-cap company is looking to buy its way to more business, but it can also make fairly valuing that company a little trickier; for Dow components General Electric (NYSE: GE  ) , Cisco (NASDAQ: CSCO  ) , and Microsoft (NASDAQ: MSFT  )  it can alter valuations so significantly that we're practically talking about a different company.

What does this mean?

When we talk about valuations, we're usually talking about the price-to-earnings ratio, or P/E. This is usually calculated by dividing a company's share price by its earnings per share. But this valuation encompasses all parts of a company -- the moving parts that are making (or losing) money, and the money itself, which is usually sitting somewhere waiting to be used.

Subtracting a company's cash per share from its P/E illustrates how valuable the market thinks that company's business is on its own, without the impact of those idle billions of dollars. General Electric, Cisco, and Microsoft are three America's largest corporate holders of cash abroad, but it's their size relative to the easily deployed part of their cash hoards that gives them the largest discount out of all 30 Dow stocks.

Let's look at what makes these three companies the stocks with the biggest "cash discount" of the Dow's components. At the end of this article, you'll find a table with the complete ranking of the 30 blue-chip stocks, from the largest to the smallest discount. Keep in mind that several Dow stocks operate in the cash-dependent financial industry, which is why they've been excluded from our official ranking here. 

Third-largest "cash discount" on the Dow: Microsoft
Bill Gates' baby has been a legendary cash machine for decades, as net margins have rarely dipped below 20% since its IPO nearly three decades ago. Microsoft has made a few splashy acquisitions over the years, but even its all-time high buyout price -- $8.5 billion for Skype in 2011 -- hasn't done much to dent the company's mountain of money. Microsoft is so good at making money that its cash discount has doubled from a relatively modest 13% at the start of 2010 to 26% today:

MSFT Cash and Short Term Investments (Quarterly) data by YCharts.

Second-largest "cash discount" on the Dow: Cisco
Cisco hasn't been quite as good as Microsoft at making money, as its available cash has only grown by 44% over the past five years, while Microsoft's hoard is nearly three times larger now than it was in late 2009. However, the market has evidently taken a dimmer view toward Cisco's business operations than it has toward Microsoft's, as the networking kingpin for several years has sported one of the largest discrepancies between baseline P/E and cash-less P/E of any Dow stock:

CSCO Cash and Short Term Investments (Quarterly) data by YCharts.

Today Cisco is tied for the second-cheapest nonfinancial Dow stock when cash is taken out of the equation, which is rather remarkable for a company that has more than doubled its earnings per share over the past decade.

The largest "cash discount" on the Dow: General Electric
GE has so much money in its coffers right now -- over $132 billion, at last count -- that it could buy 14 of its fellow Dow components outright. Not only is GE by far the largest holder of foreign cash of any U.S. company, it's also one of America's largest financial companies -- its GE Capital arm boasts over $500 billion in total assets thanks to hundreds of billions of dollars in loans made to businesses and consumers around the world. That gives GE an unparalleled position among its Dow peers, as its industrial operations are supported by so much cash from its financing segment that the company as a whole trades at a 50% lower valuation without that cash:

GE Cash and Short Term Investments (Quarterly) data by YCharts.

General Electric has been trying to slim down its financing arm since the Great Recession, but its cash on hand hasn't been hurt in the process, since GE now holds over $30 billion more in easily deployable resources than it did coming out of the crash. Investors who focus on GE's headline P/E figure are missing the bigger picture by a mile -- the company has never had such a large gap between its inclusive P/E and its cash-free P/E ratios, and this latter ratio hasn't been so consistently low in decades.

 

Top dividend stocks for the next decade
The smartest investors know that dividend stocks simply crush their non-dividend paying counterparts over the long term. That's beyond dispute. They also know that a well-constructed dividend portfolio creates wealth steadily, while still allowing you to sleep like a baby. Knowing how valuable such a portfolio might be, our top analysts put together a report on a group of high-yielding stocks that should be in any income investor's portfolio. To see our free report on these stocks, just click here now.

 

Video: How Would the Markets React to a Syria Attack?

There's a great deal of uncertainty about whether there will be a Syria attack from the United States - but investors want to know how markets would react to such a strike.

Secretary of State John Kerry has said a Syria attack - when and if it comes - would be "extremely limited and targeted," and support for an attack is far from ironclad.

Despite all this uncertainty, the Dow Jones Industrial Average is up about 150 points so far today.

Would the markets "like" an attack on Syria, or would they pull back? And could an attack mean even more stimulus and bond buying for Bernanke?

Money Morning Chief Investment Strategist Keith Fitz-Gerald speaks with FOX Business' Stuart Varney of "Varney & Co."and gives the surprising answers to these questions.

 

You can take advantage of the "calm before the storm" in Syria, and make some serious energy profits on the "Syrian premium." Dr. Kent Moors of our Energy Advantageservice shows you what to do before the shooting starts. Click here for how to play the "Syrian Premium."

Whole Foods and Sprouts Farmers Market: Two Organic Grocery Store Chains to Watch

People love organic food which contains no unnatural ingredients such as pesticides or fertilizers.  They increasingly crave food that will allow them to live healthier, longer, and cheaper due to the rising cost of health care. Organic grocery store chains Whole Foods Market (NASDAQ: WFM  ) and Sprouts Farmers Market (NASDAQ: SFM  ) certainly reap the benefit of this increasing consumer preference.

However, it always pays to do your research to see if these companies grow their revenue and cash flow. Companies that can grow cash flow increase shareholder value, boost dividends, and most importantly reinvest in the business. Let's take a look under the proverbial hood and see how these companies perform.

Source: Motley Fool Flickr by John Bromels

An organic pioneer
The first Whole Foods Market opened its doors in 1980.  As of the most recent quarter, the company operated 374 stores. Over the past five years Whole Foods Market grew its revenue, net income, and free cash flow 70%, 403%, and 122%  respectively. Year to date, Whole Foods Market grew its revenue and net income 10% and 4% respectively.  Comparable store sales increases of 5% and the opening of 12 new stores contributed to the recent increases in revenue and net income.  However, Whole Foods Market's free cash flow declined 27% so far this year due to increased capital expenditures on store expansions.

Whole Foods Market possesses an excellent balance sheet with cash and short-term investments clocking in at 27% of stockholder's equity. The company harbors no long-term debt which represents a good thing as interest can choke out profitability and cash flow over the long term.  Whole Foods Market paid out 34% of its year to date free cash flow in dividends.Currently the company pays its shareholders $0.48 per share per year and yields around 1.3% annually.

Sprouting competition
The success of Whole Foods Market enticed new entrants into the marketplace such as Sprouts Farmers Market. Founded in 2002, Sprouts Farmers Market is relatively young and has expanded  to 171 stores as of the most recent quarter.  The company competes on price under the motto, "Healthy Living for Less."

Over the past two years, the time that data is available for this company, Sprouts Farmers Market grew its revenue, net income, and free cash flow 36%, 163%, and 93%  respectively. Similarly, in the most recent quarter, Sprouts Farmers Market grew its revenue, net income, and free cash flow 26%, 86%,  and 61% respectively. New store expansion and comparable store growth of 13% served as catalysts for recent revenue and net income expansion.  Lower capital expenditures due to timing of payments for store openings, remodeling, and capital maintenance contributed to the increase in free cash flow. 

Sprouts Farmers Market's balance sheet isn't as good as Whole Foods Market. Its cash comes in at 26% of stockholder's equity. However, its long-term debt to equity ratio registers at 54%.  It's preferable for a company's long-term debt to equity ratio to reside at 50% or less. Sprouts Farmers Market does not currently pay a dividend.

Now what?
Whole Foods Market represents a well-established company with a rock solid balance sheet and no debt with a small dividend to boot. It also operates a larger chain of stores which means it garners greater purchasing power and an ability to survive on lower prices. Moreover, Whole Foods sports a profit margin of 4% versus 2% for Sprouts Farmers Market.

However, Sprouts Farmers Market represents a much smaller chain meaning it has more room to expand. Both Whole Foods Market and Sprouts Farmers Market merit more of your research time.

More stocks worthy of your time
If you thought the iPod, the iPhone, and the iPad were amazing, just wait until you see this. One hundred of Apple's top engineers are busy building one in a secret lab. And an ABI Research report predicts 485 million of them could be sold over the next decade. But you can invest in it right now... for just a fraction of the price of AAPL stock. Click here to get the full story in this eye-opening new report.

 

Don't Ignore This Reliable MLP -- It's Cheap Right Now

Master limited partnerships are not like other stocks, and the metrics we use to compare an MLP to its peers differ from the metrics we use to compare regular companies. For example, instead of the traditional P/E ratio, we emphasize MLP-specific metrics like distribution coverage ratio, and today's focus: price to distributable cash flow (P/DCF). I'll use MPLX (NYSE: MPLX  ) , Tesoro Logistics (NYSE: TLLP  ) , and Holly Energy Partners (NYSE: HEP  ) as our three examples.

Why this metric?
Price to distributable cash flow is the MLP metric that comes closest to the P/E ratio most investors know and love. Like any good ratio, it allows you to compare MLPs on a relative basis, regardless of size.

Distributable cash flow per unit replaces earnings per unit in these relative valuations because MLPs pass through almost all of their cash to unitholders. Distributable cash flow drives distribution growth, which in turn drives unit prices. That's really what investors care about the most with MLPs, and that's why analysts and management never discuss earnings per share for their MLPs; it's all about distributable cash flow.

How the metric works
To calculate P/DCF, you take the market cap of the MLP and divide it by a full year of distributable cash flow.

Let's use MPLX as our first example. We'll use distributable cash flow numbers from the four most recent quarters. The numbers shake out like this:

Q1 2014

 Q4 2013

 Q3 2013

 Q2 2013

 Total

$37.70	$28.30	$31.10	$27.20	$124.30

Source: MLPData.com. Dollar figures are in millions.

Now we'll divide the partnership's market cap by $124.3 million to derive our P/DCF multiple:

Market Cap

DCF

P/DCF

$4,370	$124.3	35.16x

Source: MLPData.com, Yahoo! Finance. Dollar figures are in millions.

The whole point of this exercise is relative valuation, so let's see how Enterprise's multiple compares to some of its peers. The DCF numbers for Tesoro Logistics and Holly Energy Partners come from the same four quarters that we used for MPLX.

MLP

Market Cap

DCF

P/DCF

MPLX	$4,370	$124	35x
TLLP	$3,760	$148	25x
HEP	$2,000	$156	13x

 Source: MLPData.com, Yahoo! Finance. Dollar figures are in millions.

It's an interesting group, and a bit surprising perhaps to see that MPLX appears grossly overvalued right now, based on this one metric. But what is the benchmark for this cash flow multiple anyway? Most investors have heard that a P/E ratio greater than 15 is high, and the further it floats above that magic number, the more overvalued the stock is. According to analysts at Morgan Stanley and Wells Fargo, the average multiple for large-cap MLPs like today's group has been between 15 and 16 times price to distributable cash flow.

By that standard, Holly Energy Partners is the only MLP here that is "cheap." This is a signal to investors to ramp up their research. For starters, Holly Energy Partners has a tremendous distribution history, increasing its payout each quarter for the last nine-and-a-half years. Distribution consistency is driven by the fact that 100% of its shipping agreements are fee-based, mitigating its exposure to commodity risk.

Despite having a rough go of it price-wise over the last 12 months, Holly Energy Partners total return for the last 10 years is north of 424%. It is a slow grower, to be sure, but it has an investment grade credit rating and is a healthy MLP, certainly worthy of further research.

Bottom line
Again, the P/DCF ratio is useful for relative valuations, but by no means would you want to base your entire investing thesis on this one metric alone. In that regard, it is exactly like the P/E ratio: a great place to start your search.

Add some more reliable picks to your portfolio
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4 Reasons to Buy Disney Stock NOW

Popular Posts: 3 Preferred Stocks Yielding More Than 8%3 Covered Calls for a Cool $1,000 in Income4 Value Trap Stocks to Sell Before It’s Too Late Recent Posts: 4 Reasons to Buy Disney Stock NOW 3 ‘Forever Hold’ Stocks, 3 Ways to Make Income 4 Value Trap Stocks to Sell Before It’s Too Late View All Posts

There are some stocks I consider "forever hold" stocks because of the role the companies play in our lives, because they are absolutely essential to life on earth. And while Disney (DIS) isn’t quite as essential as, say, energy, it has ingrained itself into the global culture in a way that few other companies have.

In fact, Disney stock is a great buy right now for a number of reasons. Here are four of the best:

#1 — Nobody Understands Entertainment Better

Disney understands its customers better than any other entertainment company in the world. That's because it has always hewed closely to its brand – family comes first. Even as the culture has changed and teens have sought out more edgy material, Disney has programmed its television platforms to serve these audiences. The studio's original family-branded films always do well at the box office and in ancillary markets.

The studio also recognizes blockbuster potential. By purchasing Pixar, Marvel, and LucasFilm, the studio locked up three of the most powerful film brands in history. And for Disney stock, the films and ancillary market revenue from these acquisitions will literally pay off for decades.

#2 — Quality

Everything Disney gets involved with meets its legendary standards of high quality.

Its parks and resorts deliver on their intended experience. Sure, we can complain about crowds, but that isn’t Disney's fault — in fact, it speaks to the company’s success. People are willing to endure long lines and fight for space along the parade route and deal with the crowds because they know their kids will love the experience (and the adults will, too).

The film studio consistently makes good movies. Sure, they produce a stinker now and then, but based on box office receipts, parents associate Disney films with "quality family entertainment.” This also goes back to the Pixar, Marvel and LucasFilm acquisitions. Disney isn't just satisfied with internal content creation. It’s also on the hunt for quality content from other sources, and it and acquires that content when it can.

Despite the ubiquity of Disney toys, I actually think Disney’s consumer products is the company's weakest segment. A lot of the plastic toys I purchased for my kids were overpriced and junky. You'll never go wrong with a plush toy, but other consumer products have fallen short of the quality standards I expect. Still, the overall quality of Disney’s products extends all the way to Disney stock.

#3 — Pricing Power

Take a look at this chart of Disney theme park prices over the years. In 1971, the cost for one day at Disney World was $3.50. Today, it costs $99. The average annual inflation rate since 1971 is around 4.2%. Disney's price hikes average close to 8.25%. The ability of a corporation to sell its product consistently and effectively, and do so with increases at twice the rate of inflation? That's like having your own magic lamp.

#4 — Great Financials

As a diversified media company, Disney survived the financial crisis easily. That’s not surprising, because Disney is a cash flow machine. FCF ranges between $3.5 billion and $6 billion annually, and Disney stock generally pays out about 25% as a dividend.

DIS is loaded with $6.8 billion in cash and $10.9 billion in debt that only costs $235 million in interest each year … which amounts to about 2.5% of operating income. That's nothing. Disney is thus funding its empire with very cheap debt while simultaneously reaping massive growth.

Disney is a buy because it’s a "forever hold" stock. Disney stock is trading around $82, so on FY14 estimates of $4.19, it trades at about 20x earnings. Long-term growth is pegged at 16%, but I grant Disney the premium for its brand and its cash flow.

As of this writing, Lawrence Meyers was long DIS.

Will 3D Images Be Google’s Next Great Innovation?

Every product has a limited life and the only thing that can stretch its life is product development. Google (GOOG) constantly keeps improving its smartphone offerings with the aim to provide better and innovative features to its users. But no matter how much development is taking place, the scope of the offering is not expanding much. What about giving something new to the users? Well, it seems, with this latest development, Google is on to that.

The Mountain View based tech giant is busy working on a technology that will allow the users to take 3 dimensional (3D) pictures using their smartphones and tablets, allowing them to come out of the 2D world of pictures. Google has been working on this technology for quite some time now and finally it is going to roll out 4,000 tablets next month for the developers. The intention behind the move is to provide the developers with a prototype device which they can use to create apps that will complement the technology.

The Innovation And Its Implications Google is still in the testing phase of this technology and has not commented on how soon one can expect it to be commercially available. For the test phase the company has decided to offer the developers with tablets and not smartphones, forcing many to ask the question if the technology will be optimized for tablets only. However, industry experts and analysts are more than sure that the company will put equal weights on both the type of devices.

The latest trend in the smartphone space revolves around devices with improved camera capabilities. Companies such as Nokia (NOK) and Sony (SNE) have already started realizing the changing needs of the consumers and have started offering handsets with high quality camera. In fact, for several of these handsets, the camera quality is the unique selling point. Even Apple (AAPL) stresses greatly on the capabilities of the iSight camera in its devices.

Google too has taken a note of changing consumer preference and it's this realization that has pushed the company to develop 3D imaging. Despite innumerable advancements in the camera technology, the company feels the present day smartphone cameras are not able to do justice to the consumer needs. According the Johnny Lee, Project Lead at Advanced Technology and Project (ATAP) Group of Google, "Human beings live in a 3 dimensional world and yet the mobile devices assume that the physical world ends at the boundaries of the screen". Google wants to address this exact issue by incorporating in the devices "a human scale feeling of space and motion".

The tech guys at Google and even industry experts believe that once the technology has been tested and improved and made commercially available, it will be able to change the fundamentals of the way in which people interact with their environment.

How Is This Being Done In February Google had introduced a prototype smartphone that was being used by the tech guys at ATAP to improve the technology and finally it seems it must be ready since the company now wants the developers to take a look at it. The tablet devices that Google will roll out will be very similar to the smartphone it used, the only difference being in the screen size. The devices will come with a 4 megapixel rear camera, a motion tracking camera, infrared depth sensors and will be accompanied by software designed to capture 3D images.

The device will capture the image using the rear camera and the motion tracking camera will let the device understand from which angle the image is being taken. The motion tracking camera and the infrared depth sensors will allow the phone to track its motion in full 3D. The sensors will simultaneously take measurements and will update the position of the phone along with rotations and will finally bring together all the information in a single 3D model.

Departing Thoughts All this sounds pretty interesting no doubt, but the question remains how soon Google can translate this technology from being an idea into an actual commercial application. The primary barrier that Google is likely to face is not related to the development of the technology, rather it will be related to its application. The technology may be already ready, but the usage is yet to be seen. Even Google is not sure of the limits of 3D imaging and that's why it's allowing the developers to access it. It will be upon these developers to interpret, improvise and translate the technology into realistic applications that can make everyday life easier for the consumers. Once this dream is realized, this technology surely has the potential to change the smartphone and tablet game, yet again.

About the author:Quick PenA seasonal writer with a Management Degree in Finance and interests in automotive, technology, telecommunication and aerospace sectors.

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Saturday, May 24, 2014 Top 10 Prefered Companies For 2015   Container Store keeps employees happy NEW YORK (CNNMoney) Investors have been flocking to initial public offerings this year. And several IPOs have been huge hits. So far in 2013, there have been six IPOs in which the stock doubled from its offering price on the first day of trading, according to Renaissance Capital, an IPO advisor in Greenwich, Conn. Could Twitter be the seventh? We'll find out soon enough. But even if Twitter doesn't soar on its first day, it's been an amazing year for IPOs. There haven't been six IPOs that have doubled since 2000, said Kathy Smith, a principal at Renaissance. Only eight IPOs have doubled on the first day in the period between 2001 and 2012, she added. Top 10 Prefered Companies For 2015: Questar Corporation(STR) Questar Corporation operates as an integrated natural gas holding company. The company develops and produces natural gas and crude oil from its properties located in the Rocky Mountain region, primarily in the Pinedale, Moxa Arch, Vermillion, and Uinta producing areas. It also provides interstate natural gas-transportation and underground-storage services in Utah, Wyoming, and Colorado; and wellhead automation and measurement services for Rockies oil and gas producers. The company owns and operates approximately 2,568 miles of interstate pipeline with total firm-capacity commitments of 4,983 Mdth per day transporting natural gas from Rocky Mountain producing areas to other pipeline systems, distribution systems, and other utility systems; the Overthrust Pipeline in southwestern Wyoming and the eastern segment of Southern Trails Pipeline, a 487-mile line that extends from the Blanco hub in the San Juan Basin to just inside the California state line near the Arizona border; the White River Hub facilities that connect with 6 interstate-pipeline systems and a processing plant near Meeker, Colorado; the Clay Basin storage facility, an underground-storage reservoir in the Rocky Mountain region; and gathering lines and processing facilities, which provide gas-processing services for third parties near Price, Utah. In addition, it distributes natural gas as a public utility in Utah, southwestern Wyoming, and a small portion of southeastern Idaho. Questar Corporation was founded in 1922 and is headquartered in Salt Lake City, Utah. Advisors' Opinion: [By Aimee Duffy] Customer diversification and fee-based revenue are tough to beat. Let's look at some of QEP's top customers: Anadarko Petroleum EOG Resources (NYSE: EOG  ) Questar (NYSE: STR  ) Ultra Resources, a subsidiary of Ultra Petroleum (NYSE: UPL  ) EOG Resources accounted for 11% of the midstream unit's revenue in 2012, while Questar accounted for 12%. Ultra is one of the two-largest shippers on QEP's Green River 60-mile crude oil pipeline (the other is Chevron). Top 10 Prefered Companies For 2015: Imperial Oil Limited(IMO) Imperial Oil Limited engages in the exploration, production, and sale of crude oil and natural gas in Canada. The company operates through three segments: Upstream, Downstream, and Chemical. The Upstream segment engages in the exploration and production of conventional crude oil, natural gas, synthetic oil, and bitumen primarily in the Western Provinces, the Canada Lands, and the Atlantic Offshore. Its primary conventional oil producing asset includes the Norman Wells oil field in the Northwest Territories. The Downstream segment engages in the transportation and refining of crude oil, as well as blending, distribution, and marketing of refined products. It owns and operates crude oil, and natural gas liquids and products pipelines in Alberta, Manitoba, and Ontario. The Chemical segment engages in the manufacture and marketing of various petrochemicals, including ethylene, benzene, aromatic and aliphatic solvents, plasticizer intermediates, and polyethylene resin. As of De cember 31, 2010, Imperial Oil Limited had 1,204 million oil-equivalent barrels of proved undeveloped reserves; maintained a nation-wide distribution system, including 24 primary terminals, to handle bulk and packaged petroleum products moving from refineries to market by pipeline, tanker, rail, and road transport; and sold petroleum products through 1,850 Esso retail service stations, of which approximately 510 were company owned or leased. The company was founded in 1880 and is headquartered in Calgary, Canada. Imperial Oil Limited operates as a subsidiary of Exxon Mobil Corporation. Advisors' Opinion: [By Arjun Sreekumar] Cost overruns and abandoned projects As a result of these factors, cost overruns have become quite common in Alberta. For instance, Imperial Oil (NYSEMKT: IMO  ) said it exceeded its cost estimates for the first phase of its Kearl bitumen mining facility by about C$2 billion.�And some companies have even decided to abandon expensive projects altogether. [By Aaron Levitt] For Imperial Oil (IMO), it�� good to have friends in high places. In this case, we��e talking about Exxon�� (XOM) 70% stake in the Canadian integrated oil firm. That relationship has provided plenty of capital and technological know-how to produce plenty of crude oil and natural gas via conventional and unconventional means. [By Caiman Valores] But as highlighted earlier Whitecap's Canadian light sweet crude is not as heavily discounted as Canadian heavy oil or bitumen. This does not leave it exposed to the same price risks and volatility as those companies that have a significant portion of their production made up by Canadian heavy oil and Bitumen, such as Husky Energy (HUSKF.PK), Suncor (SU), Imperial Oil (IMO) and Canadian Natural Resources (CNQ). [By Stephan Dube] Cold Lake's most notable producers: Husky Energy (HUSK.PK), see article here.Pengrowth Energy Corporation (PGH), see article here.Southern Pacific Resource (STPJF.PK), see article here.Canadian Natural Resources (CNQ), see article here.Devon Energy (DVN), see article here.Imperial Oil (IMO), see article here.Baytex, see article here.Bonavista Energy (BNPUF.PK), see article here. Athabasca's most notable producers: 5 Best Dividend Stocks For 2015: Markwest Energy Partners LP (MWE) MarkWest Energy Partners, L.P. (MarkWest Energy) is a master limited partnership engaged in the gathering, processing and transportation of natural gas; the transportation, fractionation, storage and marketing of natural gas liquids (NGLs), and the gathering and transportation of crude oil. It provides services in the midstream sector of the natural gas industry. The Company also provides processing and fractionation services to crude oil refineries in the Corpus Christi, Texas area through its Javelina gas processing and fractionation facility. As of December 31, 2011, the Company operated in four segments: Southwest, Northeast, Liberty and Gulf Coast. Effective December 31, 2011, the Company acquired the remaining 49% interest in MarkWest Liberty Midstream. On February 1, 2011, the Company acquired Langley processing plant. Southwest Segment The Company owns a system in East Texas that consists of natural gas gathering pipelines, centralized compressor stations, a natural gas processing facility and an NGL pipeline. The East Texas system is located in Panola, Harrison and Rusk Counties and services the Carthage Field. Producing formations in Panola County consist of the Cotton Valley, Pettit, Travis Peak and Haynesville formations. During the year ended December 31, 2011, approximately 77% of its natural gas volumes in the East Texas System result from contracts with six producers. The Company sells substantially all of the purchased and retained NGLs produced at its East Texas processing facility to Targa Resources Partners, L.P. (Targa) under a long-term contract. Such sales represent approximately 19.4% of its consolidated revenue in 2011. The Company owns a natural gas gathering system in the Woodford Shale play in the Arkoma Basin of southeast Oklahoma. The liquids-rich natural gas gathered in the Woodford system is processed through Centrahoma Processing LLC (Centrahoma), its equity investment, or other third-party processors. In addition, it owns the Foss Lake! natural gas gathering system and the Western Oklahoma natural gas processing complex, all located in Roger Mills, Beckham, Custer and Ellis Counties of western Oklahoma. The gathering portion consists of a pipeline system that is connected to natural gas wells and associated compression facilities. The Company also owns a gathering system in the Granite Wash formation in Wheeler County in the Texas panhandle that is connected to its Western Oklahoma processing complex. The Company completed the expansion of the Western Oklahoma natural gas processing plant in October 2011. Approximately 70% of its Oklahoma volumes result from contracts with three producers in 2011. The Company sells substantially all of the NGLs produced in the Western Oklahoma processing complex to ONEOK Hydrocarbon L.P. (ONEOK) under a long-term contract. Such sales represent approximately 13.2% of its consolidated revenue in 2011. The Company owns a number of natural gas gathering systems located in Texas, Louisiana, Mississippi and New Mexico, including the Appleby gathering system in Nacogdoches County, Texas. It gathers a portion of the gas produced from fields adjacent to its gathering systems, including from wells targeting the Haynesville Shale. In addition, it owns four lateral pipelines in Texas and New Mexico. Northeast Segment The Company�� Northeast segment assets include the Kenova, Boldman, Cobb, Kermit and Langley natural gas processing plants, an NGL pipeline and the Siloam NGL fractionation plant. In addition, it has two caverns for storing propane at its Siloam facility and additional propane storage capacity under a long-term firm-capacity agreement with a third party. The Northeast segment operations include fractionation and marketing services on behalf of the Liberty segment. The Company owns and operates a crude oil pipeline in Michigan (Michigan Crude Pipeline) providing transportation service for three shippers. Liberty Segment The Company pr! ovides na! tural gas midstream services in southwestern Pennsylvania and northern West Virginia through MarkWest Liberty Midstream. It is a processor of natural gas in the Marcellus Shale, with gathering, processing, fractionation, storage and marketing operations. Utica Segment Effective January 1, 2012, the Company and The Energy and Minerals Group (EMG) formed MarkWest Utica EMG, a joint venture focused on the development of natural gas processing and NGL fractionation, transportation and marketing infrastructure to serve producers' drilling programs in the Utica shale in eastern Ohio. During 2011, the Utica Segment did not have any operations. Gulf Coast Segment The Company owns and operates the Javelina processing facility, a natural gas processing facility in Corpus Christi, Texas that treats and processes off-gas from six local refineries operated by three different refinery customers. As of December 31, 2011, the Company owned a 40% interest in Centrahoma Processing LLC (Centrahoma), a joint venture with Cardinal Midstream, LLC (Cardinal). Centrahoma owns certain processing plants in the Arkoma Basin and Cardinal operates an additional processing plant that is not owned by Centrahoma but is located adjacent to and operates in conjunction with the Centrahoma plants. Advisors' Opinion: [By Dr. Kent Moors] From the Editor: Shares of MarkWest Energy Partners (NYSE: MWE) are up 63% since Kent recommended them in Energy Advantage. Genesis Energy LP (Nasdaq: GEL) is up 71%. But the MLP market is about to get much more interesting, according to Kent. That's why he's targeting the "clones" now... [By Ben Levisohn] Abbvie (ABBV) Ameren Corp. (AEE) Arthur J. Gallagher (AJG) E.I. DuPont de Nemours & Co. (DD) ENSCO (ESV) Enterprise Products Partners LP (EPD) General Mills (GIS) H&R Block (HRB) Hancock Holding (HBHC) Kraft Foods Group (KRFT) Lorillard (LO) Magellan Midstream Partners LP (MMP) MarkWest Energy Partners L P (MWE) McDonald’s (MCD) Microchip Technology (MCHP) NextEra Energy (NEE) Regency Centers (REG) TELUS Corp. (TU) West Corp. (WSTC) Williams Companies (WMB) [By David Dittman] Question: Thoughts on MarkWest Energy Partners LP (NYSE: MWE)? I live in Western Pennsylvania, and MarkWest hass been laying pipeline everywhere. Answer: The pullback since mid-March offers a good opportunity to buy MarkWest Energy under 66. Management recently boosted the quarterly distribution rate by 1.2 percent and increased the MLP’s revolving credit facility to $1.3 billion and extended its maturity by 18 months to March 2019. [By Greg Madison] On the supply side, Gulfport Energy Corp. (Nasdaq: GPOR) has contracted with Dominion Resources Inc. (NYSE: D) subsidiaries Dominion East Ohio and Dominion Transmission to transport the Utica natural gas from the Markwest Energy Partners LP (NYSE: MWE) gas-processing facility in Cadiz, Ohio, out to the wider American Midwest. And, like Chesapeake and American Energy Partners, Gulfport owns land, which it is exploring as well. Gulfport has some of the most diversified sources in Ohio, with 43% of its land atop dry gas, 27% atop condensates, 22% in the wet gas zone, and just 8% atop oil. Gulfport has started 24 wells in 2013 so far. Top 10 Prefered Companies For 2015: Legg Mason Inc (LM) Legg Mason, Inc. (Legg Mason), incorporated in 1981, is a global asset management company. The Company, through its subsidiaries, provides investment management and related services to institutional and individual clients, company-sponsored mutual funds and other pooled investment vehicles. It offers these products and services directly and through various financial intermediaries. The Company provides its asset management services through a number of asset managers, each of which generally markets its products and services under its own brand name and, in many cases, distributes retail products and services through a centralized retail distribution network. Its investment advisory services include discretionary and non-discretionary management of separate investment accounts in a number of investment styles for institutional and individual investors. Legg Mason�� investment products include mutual funds ranging from money market and other liquidity products to fixed income and equity funds managed in a variety of investment styles, other domestic and offshore funds offered to both retail and institutional investors and funds-of-hedge funds. As of March 31, 2012, assets under management were $643.3 billion. During the fiscal year ended March 31, 2012 (fiscal 2012), the Company sold Bartlett & Co., a Cincinnati-based wealth manager. Asset Managers The Company conducts its business primarily through 12 asset managers. Its asset managers are individual businesses, each of which generally focuses on a portion of the asset management industry in terms of the types of assets managed (primarily equity or fixed income), the types of products and services offered, the investment styles utilized, the distribution channels used, and the types and geographic locations of its clients. The Company�� asset managers provide a range of separate account investment management services to institutional clients, including pension and other retirement plans, corporations, insurance companies, ! endowments and foundations and governments, and to high-net-worth individuals and families. In addition, its asset managers also sponsor and manage various groups of the United States mutual funds, including the Legg Mason Funds, The Royce Funds and the Western Asset Funds, funds-of-hedge funds and a number of equity, fixed income, liquidity and balanced funds that are domiciled and distributed in countries worldwide, and provide investment advisory services to a number of retail separately managed account programs. Western Asset Management Company is a global fixed income asset manager for institutional clients. Western Asset's operations include investment operations in New York City, the United Kingdom, Japan, Brazil, Australia and Singapore. Western Asset offers a range of products spanning the yield curve and encompassing the bond markets, including a suite of limited duration and core products, emerging market and high yield portfolios, municipal portfolios and a variety of sector-oriented and global products. Among the services Western Asset provides are management of separate accounts and management of mutual funds, closed-end funds, international funds and other structured investment products. ClearBridge Advisors is an equity asset management firm. ClearBridge Advisors provides asset management services to 29 of the equity funds (including balanced funds and closed-end funds) in the Legg Mason Funds, to retail separately managed account programs, to certain of its international funds and, primarily through separate accounts, to institutional clients. ClearBridge also sub-advises domestic mutual funds that are sponsored by third parties. Royce & Associates is investment advisor to all of The Royce Funds and to certain of the Company�� international funds. In addition, Royce & Associates manages other pooled and separate accounts, primarily institutional. Brandywine Global Investment Management manages fixed income, including global and international fixed income, and equity portf! olios for! institutional and, through wrap accounts, high-net-worth individual clients. Batterymarch Financial Management manages the United States, international and emerging markets equity portfolios for institutional clients. Permal Group Ltd. is a global funds-of-hedge funds management firm. With a headquarters in London and other offices in New York City, Boston, Dubai, Paris, Tokyo, Hong Kong, Singapore and Nassau, Permal manages products, which include both directional and absolute return strategies, and are available through multi-manager and single manager funds, separately managed accounts and structured products sponsored by a number of financial institutions. Legg Mason Capital Management is an equity asset management business that manages both institutional separate accounts and mutual funds. Legg Mason Capital Management manages 12 Legg Mason Funds, and also sub-advises the mutual fund managed by the joint venture described below and investment products sponsored by its other subsidiaries, including certain of the Company�� international funds. Legg Mason Investment Counsel & Trust Company, National Association is a national banking association with authority to exercise trust powers. Legg Mason Investment Counsel & Trust Company provides services as a trustee for trusts established by its individual and employee benefit plan clients and manages fixed income and equity assets. Legg Mason Investment Counsel, LLC, a subsidiary of Legg Mason Investment Counsel & Trust, manages equity, fixed income and balanced portfolios for high-net-worth individual and institutional clients and a number of its mutual funds. Legg Mason Investment Counsel operates out of offices in New York City, Cincinnati, Philadelphia, Easton, Maryland, and Bryn Mawr, Pennsylvania. Esemplia Emerging Markets is an emerging markets equities investment manager. Esemplia offers a range of portfolio management strategies, including core long-only and alpha-extension portfolios, to institutional investors worl! dwide, in! cluding pension funds and sovereign wealth funds. Private Capital Management manages equity assets for high-net-worth individuals and families, institutions, endowments and foundations in separate accounts and through limited partnerships. Legg Mason's business in Poland engages in portfolio management, servicing and distribution of both separate account management services and local funds in Poland. The firm provides portfolio management services primarily for equity assets to institutions, including corporate pension plans and insurance companies, and, through funds distributed through banks and insurance companies, individual investors. Legg Mason Australian Equities is an Australian asset management business that offers Australian equity products, Australian property trusts and asset allocation products. As of March 31, 2012, Legg Mason Australian Equities managed assets with a value of $1billion. United States Mutual Funds The Company�� United States mutual funds business primarily consists of three groups of mutual and closed-end funds, the Legg Mason Funds, The Royce Funds and the Western Asset Funds. The Legg Mason Funds invest in a range of domestic and international equity and fixed income securities. The Royce Funds invest primarily in smaller-cap company stocks using a value investment approach. The Western Asset Funds invest primarily in fixed income securities. The Legg Mason Funds consist of 113 mutual funds and 27 closed-end funds in the United States, almost all of which are sub-advised by its subsidiary asset managers. The mutual funds and closed-end funds within the Legg Mason Funds include 63 equity funds (including balanced funds) that invest in a spectrum of equity securities. The fixed income and liquidity mutual funds and closed-end funds within the Legg Mason Funds include 77 funds. As of March 31, 2012 , the Legg Mason Funds included $114.7 billion in assets, respectively, in their mutual funds and closed-end funds, of which approximate! ly 30% an! d 27%, respectively, were equity assets, approximately 24% and 18%, respectively, were fixed income assets and approximately 46% and 55%, respectively, were liquidity assets. The Royce Funds consist of 32 mutual funds and three closed-end funds, most of which invest primarily in smaller-cap company stocks. The Royce Funds are distributed through non-affiliated fund supermarkets, its centralized funds distribution operations, non-affiliated wrap programs, and direct distribution. In addition, two of the portfolios in The Royce Funds are distributed only through insurance companies. The Company�� mutual funds business also includes the Western Asset Funds, a family of nine mutual funds and two closed-end funds. The mutual funds are marketed primarily to institutional investors and retirement plans through the Company�� institutional funds marketing group. Western Asset Management Company manages these funds. The funds primarily invest in fixed income securities. International Funds The Company, outside the United States, manages, supports and distributes a number of funds across an array of global fixed income, liquidity and equity investment strategies. Its international funds include a range of cross border funds that are domiciled in Ireland and Luxembourg and are sold in a number of countries across Asia, Europe and Latin America. The Company�� international funds also include local fund ranges that are available for distribution in the United Kingdom, Australia, Japan, Singapore, Poland, Hong Kong and Canada. All of its international funds are distributed and serviced by Legg Mason's global distribution group. Its international funds include equity, fixed income, liquidity and balanced funds that are primarily managed or sub-advised by Batterymarch Financial Management, Brandywine Global, ClearBridge, Esemplia, Legg Mason Capital Management, Private Capital Management, Royce & Associates, Western Asset Management and its global asset allocation team. In a! ggregate,! the Company sponsors and manages more than 220 of these international funds. Retail Separately Managed Account Programs The Company is a provider of asset management services to retail separately managed account programs, commonly known as managed account or wrap programs. These programs typically allow securities brokers or other financial intermediaries to offer their clients the opportunity to choose from a number of asset management services. It provides investment management services to a number of retail separately managed account programs sponsored by a number of financial institutions. Distribution The Company�� centralized global distribution group distributes and supports its United States and international funds and retail separately managed account program business. The United States-based operations of the Company�� global distribution group support and distribute the Legg Mason Funds, The Royce Funds and the Western Asset Funds, and include its mutual fund wholesalers and its institutional funds marketing group. The Company�� mutual fund wholesalers distribute the Legg Mason Funds through a number of third-party distributors. The Company�� institutional funds marketing group distributes institutional share classes of the Legg Mason Funds and the Western Asset Funds to institutional clients and also distributes variable annuity sub-advisory services provided by its asset managers to insurance companies. Its institutional liquidity funds are primarily distributed by Western Asset's distributors. In addition to its centralized funds distribution group, Royce & Associates' distributors also distribute The Royce Funds. In addition to distributing funds, the wholesalers in the Company�� global distribution operations also support its retail separately managed account program services. These services are provided through programs sponsored by Morgan Stanley Smith Barney's retail business, as well as other financial institutions. ! The international distributors within the Company�� global distribution group offer its investment management services to individual and institutional investors across Asia, Europe and the Americas. These distributors operate out of distribution offices in 18 cities in 14 countries and are the sole distributors of its cross border funds globally and its international local funds in their respective countries. Legg Mason Investments is responsible for the distribution and servicing of cross border and local fund ranges across Europe, the Americas and Asia. Legg Mason Investments has offices in locations including London, Paris, Milan, Geneva, Frankfurt, Madrid, Singapore, Hong Kong, Taipei, Miami, Santiago and New York. In addition to Legg Mason Investments, the Company�� global distribution group includes separate distribution operations in Australia, Canada and Japan. In Australia, its distribution operations distribute local and cross border pooled investment vehicles sub-advised by the Company�� asset managers primarily to retail investors, pension plans, fund-of-funds managers, insurance companies and government funds/agencies. In Canada, its distribution operations distribute Legg Mason-managed products primarily to pension plans, endowments, foundations, banks and mutual fund companies and separately managed account programs. In Japan, the Company�� distribution operations distribute domestic investment funds, cross border funds and institutional separate accounts primarily to the retail market, which includes retail banks, private banks, asset managers, funds platforms and insurance companies. Advisors' Opinion: [By Zacks] Currently, shares of T. Rowe Price carry a Zacks Rank #2 (Buy). Among other investment managers, Invesco Ltd. (NYSE: IVZ) is scheduled to report December quarter end results on Jan 30, Legg Mason Inc. (NYSE: LM) on Jan 31 and Ameriprise Financial, Inc. (NYSE: AMP) on Feb 4. [By MONEYMORNING] Take a look at these other Nelson Peltz activist investing success stories: H.J. Heinz: When Peltz got involved with Heinz, the stock had been slumping. He encouraged management to cut costs, buy back shares, and refocus the company on its core brands. By the time Warren Buffett's Berkshire Hathaway (NYSE: BRK.A, BRK.B) bought it last year for $23 billion, the stock had shot up 75%. "Management did a great job executing the turnaround, but Peltz was the catalyst for a lot of the change," John Sini, a portfolio manager at Douglas C. Lane & Associates Inc., told Bloomberg News last year. "We are looking at this price now and saying, 'Thank you, thank you, thank you.'" Ingersoll-Rand PLC (NYSE: IR): Peltz took an interest in this manufacturer of industrial and commercial goods back in mid-2012; the stock is up 77% since then. Among the moves Peltz influenced was a spinoff of IR's security division, a $2 billion share repurchase program, and a 31% increase in the dividend. Legg Mason Inc. (NYSE: LM): Peltz owns 10% and has a seat on the board of the once high-flying financial firm that fell on hard times after the departure in 2008 of founder Raymond "Chip" Mason. Peltz helped get Legg Mason back on track by playing a leading role in selecting current Chief Executive Officer Joseph A. Sullivan, who assumed the top post in February 2013. The change in leadership worked; since December 2012, LM is up 75%. This "Peltzing" is a phenomenon of particular interest now that he has a new top holding... [By Shauna O'Brien] Susquehanna International reported on Wednesday that it has maintained a “Negative” rating on Legg Mason Inc (LM). The firm has reiterated a “Negative” rating on LM, but has increased the company’s price target from $23 to $24. This new price target suggests an 18% decline from the stock’s current price of $32.74. An analyst from the firm noted: ��e are raising our f2Q14 estimate to $0.6 Negative. 0 from $0.48 reflective of a lower tax rate and some revenue benefits from the market lift in September. We are modeling a 15% GAAP tax rate in f2Q as a result of new U.K. corporate tax reductions that were put into place. Our calendar 2013 and 2014 estimates are now $1.70 and $2.00 compared to $1.61 and $1.90, previously. The calendar 2014 revision is reflective of higher buybacks and some flow-through with higher equity asset levels to end the current quarter. Our target is now $24 or 12x our new calendar 2014 estimate. We expect net long-term outflows of $5 billion-$6 billion this quarter or a 4% organic decay rate, the worst since December 2012. Frankly, we do not think estimates or flow matter all that much to shares. The ability to repurchase stock remains the most important driver of the equity.��/p> Legg Mason shares were up 14 cents, or 0.43%, during Wednesday morning trading. The stock is up 27% YTD. Top 10 Prefered Companies For 2015: Comcast Corp (CCV) Comcast Corporation (Comcast), incorporated on December 12, 2001, is a provider of entertainment, information and communications products and services. The Company has developed, managed and operated cable systems. The Company operates in five segments: Cable Communications, Cable Networks, Broadcast Television, Filmed Entertainment and Theme Parks. Cable Communications provides video, high-speed Internet and voice services (cable services) to residential and business customers in 39 states and the District of Columbia. Cable Networks consists primarily of its national cable television networks, its regional sports and news networks, its international cable networks, its cable television production studio, and its related digital media properties. Broadcast Television consists primarily of its NBC and Telemundo broadcast networks, its NBC and Telemundo owned local television stations, its broadcast television production operations, and its related digital media properties. Filmed Entertainment consists of the operations of Universal Pictures, which produces, acquires, markets and distributes filmed entertainment and stage plays worldwide. Theme Parks consists primarily of its Universal theme parks in Orlando and Hollywood. Its other business interests are included in Corporate and Other and primarily include Comcast Spectacor, which owns the Philadelphia Flyers and the Wells Fargo Center, a multipurpose arena in Philadelphia. Comcast Spectacor also owns Global Spectrum, which provides facilities management, and Ovations Food Services, which provides food services, for sporting events, concerts and other events. In July 2012, Comcast acquired Microsoft Corporation's 50% stake in MSNBC.com. Effective March 19, 2013, it acquired a 49% interest in NBCUniversal Media LLC. On January 28, 2011, the Company closed its transaction with General Electric Company (GE) to form a new company named NBCUniversal, LLC (NBCUniversal Holdings). The Company controls and owns 51% of NBCUniversal Holdings, and! GE owns the remaining 49%.As part of the NBCUniversal transaction, GE contributed the businesses of NBCUniversal, which is a wholly owned subsidiary of NBCUniversal Holdings. The NBCUniversal businesses that were contributed included its national cable networks, the NBC and Telemundo broadcast networks and its NBC and Telemundo owned local television stations, Universal Pictures, the Universal Studios Hollywood theme park, and other related assets. The Company contributed its national cable networks, its regional sports and news networks, certain of its Internet businesses, including DailyCandy and Fandango, and other related assets (the Comcast Content Business), all of which are part of its Cable Networks segment. Cable Services The Company offers a variety of cable services over its cable distribution system to residential and business customers. Subscription rates and related charges vary according to the services and features the customer receives and the type of equipment they use, and customers typically pay the Company on a monthly basis. Residential customers may generally discontinue service at any time, while business customers may only discontinue service in accordance with the terms of their contracts, which typically have 1 to 3 year terms. As of December 31, 2011, its cable systems served 22.3 million video customers, 18.1 million high-speed Internet customers and 9.3 million voice customers and passed more than 52 million homes and businesses in 39 states and the District of Columbia. The Company offers a variety of video services with access to hundreds of channels depending on the level of service selected. Its levels of service typically range from a limited basic service with access to between 20 and 40 channels of video programming to a digital service with access to over 300 channels. Its video services generally include programming provided by national and local broadcast networks and by national and regional cable networks, as well as gov! ernmental! and public access programming. Its digital video services generally include access to over 40 music channels, its On Demand service and an interactive, on-screen program guide. The Company also offers packages that include extensive amounts of foreign-language programming, and it offers other specialty tiers of programming with sports, family and international themes. Its video customers may also subscribe to premium network programming. Premium networks include cable networks, such as HBO, Showtime, Starz and Cinemax, which generally offer, without commercial interruption, movies, original programming, live and taped sporting events, concerts and other special features. The Company�� On Demand service provides its digital video customers with more than 30,000 standard-definition and high-definition programming choices. A substantial portion of its On Demand content is available to its digital video customers at no additional charge. Digital video customers subscribing to a premium network have access to the premium network�� On Demand content without additional fees. Its On Demand service includes fee-based selections that allow its video customers to order individual new release and library movies and special-event programs, such as professional boxing, mixed martial arts, wrestling and concerts. The Company�� high-definition television (HDTV) service includes a selection of high-definition programming choices, including broadcast networks, national cable networks, premium networks and regional sports networks. In addition, its On Demand service provides HDTV video customers with a selection of up to 6,000 high-definition programming choices in select markets over the course of a month. Its digital video recorder (DVR) service allow digital video customers to select, record and store programs on their set-top box and play them at whatever time is convenient. Its DVR service also provides the ability to pause and rewind live television. The Company also offers select ! programmi! ng in three dimensional (3D) format on the channels it distributes and On Demand to its HDTV customers who have 3D capable television (TV) sets. In 2012, it began streaming certain live television programming online and through its mobile applications in some of its markets. The Company offers a variety of high-speed Internet services with downstream speeds of up to 105 Mbps. These services also include its Internet portal, XFINITY.com, which provides access to email, voice mail, an address book, online storage, and online security features. Its customers also have the ability to access these services, including managing their e-mail accounts, through its mobile applications using smartphones and tablets. It offers voice service plans, using an interconnected Voice over Internet Protocol (VoIP) technology, that provide either usage-based or unlimited local and domestic long-distance calling, include the option for a variety of international calling plans, voice mail, caller identification (ID), call waiting and other features, including the ability to access and manage voice mail and other account information online and through its mobile applications using smartphones and tablets. The Company offers its cable services to small and medium-sized businesses (business services). In addition to the features provided to its residential customers, its services for business customers also include a Website hosting service, an interactive tool that allows customers to share, coordinate and store documents online, a business directory listing and the option to add up to 24 phone lines. Medium-sized business customers are also offered its Metro-Ethernet data service capable of connecting multiple locations at speeds of up to 10 gigabit per second. It also provides cell backhaul services to cellular network operators. To offer its video services, it licenses a substantial portion of its programming from cable and broadcast networks. Cable Networks The Company�! � Cable ! Networks segment operates a diversified portfolio of 15 national cable networks, 13 regional sports and news networks, more than 60 international channels, and digital media properties consisting primarily of brand-aligned and other websites, including DailyCandy, Fandango and iVillage. Its 13 regional sports and news networks are Comcast SportsNet Philadelphia, Comcast SportsNet Mid-Atlantic (Baltimore/Washington), Cable Sports Southeast, Comcast SportsNet Chicago, MountainWest Sports Network, Comcast SportsNet California (Sacramento), Comcast SportsNet New England (Boston), Comcast SportsNet Northwest (Portland), Comcast Sports Southwest (Houston), Comcast SportsNet Bay Area (San Francisco), New England Cable News (Boston), Comcast Network Philadelphia and Comcast Network Mid-Atlantic (Baltimore/Washington). The Company markets and distributes its cable network programming in the United States and internationally to multichannel video providers, as well as to Internet and wireless distributors. The Company�� cable networks develop their own programs or acquire programming rights from third parties. Its Cable Networks segment includes its production studio, Universal Cable Production that identifies, develops and produces original content for cable television and other distribution platforms both for its cable networks and for those of third parties. It licenses the content to all forms of television, including broadcast and cable networks, and through home video and various digital media platforms, both in the United States and internationally. Its Cable Networks segment primarily generates revenue from the distribution of its cable network programming and from the sale of advertising. Distribution revenue is generated from distribution agreements with multichannel video providers. Advertising revenue is generated from the sale of advertising time on its cable networks and related digital media properties. It also generates content licensing and other revenue from the licensing and sale! of its o! wned programming in the United States and internationally, including revenue from the sale of its owned programming on standard-definition digital video discs and Blu-ray discs (together, DVDs) and through digital media platforms, and from the licensing of its brands for consumer products. Broadcast Television The Company�� Broadcast Television segment operates the NBC and Telemundo broadcast networks, which together serve audiences and advertisers in all 50 states, including the United States metropolitan areas. Its Broadcast Television segment also includes its owned and operated NBC and Telemundo local television stations, its broadcast television production operations and its related digital media properties. Its Broadcast Television segment primarily generates revenue from the sale of advertising and from content licensing. Advertising revenue is generated from the sale of advertising time on its broadcast networks, owned local television stations and related digital media properties. Content licensing revenue is generated from the licensing of its owned programming in the United States and internationally. The Company also generates revenue from the sale of its owned programming on DVDs, through digital media platforms and from the licensing of its brands and characters for consumer products. In addition, its owned local television stations are beginning to receive retransmission fees from multichannel video providers in exchange for consent that allows carriage of the stations��signal. It also receives a portion of the retransmission fees received by its NBC affiliated stations. The NBC network distributes more than 5,000 hours of entertainment, news and sports programming annually, and its programs reach viewers in virtually all United States television households through more than 200 affiliated stations across the United States, including its10 NBC owned local television stations. The NBC network develops a range of content through its entertainment, news ! and sport! s divisions and also airs a variety of special-events programming. The NBC network�� television library consists of rights of varying nature to more than 100,000 episodes of television content, including current and classic titles, unscripted programming, sports, news, long-form and short-form programming and locally produced programming from around the world. In addition, the NBC network operates various Websites that extend its brands and content online. The NBC network produces its own programs or acquires the rights to programming from third parties. NBCUniversal has various contractual commitments for the licensing of rights to multiyear programming, including sports programming. The Company�� broadcast television production operations create and produce original content, including scripted and unscripted series, talk shows, and digital media projects that are sold to broadcast networks, cable networks, local television stations and other media platforms owned by the Company and third parties, as well as through home video, both in the United States and internationally. It also produces first-run syndicated shows, which are programs for initial exhibition on local television stations in the United States, on a market-by-market basis, without prior exhibition on a network. It distributes some of its programs after their exhibition on a broadcast network, as well as older television programs from its library, to local television stations and cable networks in the off-network syndication market in the United States. The Company owns and operates 10 NBC affiliated local television stations that collectively reached approximately 31 million United States television households, which represents approximately 27% of all United States television households, as of December 31, 2011. In addition to airing NBC�� national programming, its stations produce news, sports, public affairs and other programming that addresses local needs and acquire syndicated programming from other ! sources. ! Telemundo is a Hispanic media company that produces, acquires and distributes Spanish-language content in the United States and internationally. Telemundo�� operations include the Telemundo network; its owned local television stations; mun2, a cable network featuring diverse, youth-oriented entertainment for bicultural Latinos, and Telemundo-related digital media properties consisting primarily of brand-aligned websites, such as Telemundo.com. The Telemundo network is a Spanish-language broadcast network featuring original telenovelas, theatrical films, news, specials and sporting events. The Company develops its own programming primarily through Telemundo�� production studio and also acquire the rights to content from third parties. During the year ended December 31, 2011, it entered into an agreement with Federation Internationale de Football Association (FIFA) to license the Spanish-language United States broadcast rights to FIFA World Cup soccer from 2015 through 2022 and also acquired the Spanish-language United States broadcast rights for the National Football League (NFL) games that the NBC network will broadcast as part of its agreement with the NFL that runs through the 2022-23 season. As of December 31, 2011, Telemundo owned 15 local television stations, including 14 local television stations affiliated with the Telemundo network and an independent television station in Puerto Rico. Filmed Entertainment The Company�� Filmed Entertainment segment consists of the operations of Universal Pictures, which produces, acquires, markets and distributes filmed entertainment worldwide in various media formats for theatrical, home entertainment, television and increasingly through other distribution platforms. It also develops, produces and licenses stage plays. Its content consists of theatrical films, direct-to-video titles and its film library, which is comprised of approximately 4,500 titles in a variety of genres. It produces films both on its own and jo! intly wit! h other studios or production companies, as well as with other entities. Its films are produced under both the Universal Pictures and Focus Features names. Its films are marketed and distributed worldwide primarily through its own marketing and distribution companies. The Company also acquires distribution rights to films produced by others, which may be limited to particular geographic regions, specific forms of media or certain periods of time. After their theatrical release, it distributes its films globally for home entertainment use on digital versatile disc (DVD) and in various digital formats, which includes the licensing of its films to third parties for electronic sell-through over the Internet. The Company also licenses its films, including selections from its film library, to all forms of television, including broadcast, cable and premium networks, and pay-per-view and video on demand services. The Company�� Filmed Entertainment segment primarily generates revenue from the worldwide theatrical release of its owned and acquired films, content licensing and home entertainment. Content licensing revenue is generated from the licensing of its owned and acquired films to broadcast, cable and premium networks, as well as other distribution platforms. Home entertainment revenue is generated from the licensing and sale of its owned and acquired films through DVD sales to retail stores, rental kiosks and subscription by mail, as well as through digital media platforms, including electronic sell through. It also generates revenue from distributing third parties��filmed entertainment, producing stage plays, publishing music and licensing consumer products. Theme Parks The Company�� Theme Parks segment consists primarily of its Universal theme parks in Orlando and Hollywood. Universal Orlando includes two theme parks, Universal Studios Florida and Universal�� Islands of Adventure, as well as CityWalk, a dining, retail and entertainment complex. Universal Or! lando als! o features three on-site themed hotels, in which it owns a non-controlling interest. Its Universal theme park in Hollywood consists primarily of Universal Studios Hollywood. In addition, it licenses the right to use the Universal Studios brand name, certain characters and other intellectual property to third parties that own and operate the Universal Studios Japan theme park in Osaka, Japan and the Universal Studios Singapore theme park on Sentosa Island, Singapore. It also owns a water park, Wet �� Wild, located in Orlando. The Company�� Theme Parks segment licenses the right to use a substantial amount of intellectual property from third parties for its themed elements in rides, attractions, retail outlets and merchandising. ItsTheme Parks segment generates revenue primarily from theme park attendance and per capita spending, as well as from management, licensing and other fees. Per capita spending includes ticket price and in-park spending on food, beverage and merchandise. The Company competes with DIRECTV, DISH Network, AT&T, CenturyLink and Verizon. Advisors' Opinion: [By Brian Stelter] Comcast (CCV) has agreed to pay $158.82 per share of Time Warner Cable (TWC, Fortune 500) stock, according to two people with direct knowledge of the transaction who insisted on anonymity because the deal will not be publicly announced until Thursday morning. [By Mark Thompson] The European Union's antitrust watchdog said Monday it had begun formal proceedings to examine the licensing agreements between studios including Twentieth Century Fox, owned by 21st Century Fox (FOXA); Warner Bros, part of Time Warner Inc (TWX, Fortune 500) (CNNMoney's parent); Sony (SNE) Pictures; Comcast Corp (CCV)'s NBCUniversal and Viacom (VIA)'s Paramount Pictures. Top 10 Prefered Companies For 2015: Cubist Pharmaceuticals Inc.(CBST) Cubist Pharmaceuticals, Inc., a biopharmaceutical company, focuses on the research, development, and commercialization of pharmaceutical products that address unmet medical needs in the acute care environment. The company markets CUBICIN (daptomycin for injection), a once-daily, bactericidal, intravenous, antibiotic with activity against gram-positive organisms, including methicillin-resistant staphylococcus aureus. Its clinical development product pipeline consists of CXA-201, which is in the phase III clinical trial for patients with complicated urinary tract infections; and in phase II clinical trial for patients with complicated abdominal infections. The company is also developing CXA-201 for the treatment of hospital acquired pneumonia. In addition, its product under development comprises CB-183,315, an oral, bactericidal lipopeptide with in vitro bactericidal activity against C. difficile, for the treatment of clostridium difficile-associated diarrhea (CDAD). Further , the company?s pre-clinical programs include therapies to treat various bacterial infections and agents to treat acute pain. Additionally, it promotes MERREM I.V. (meropenem for injection), a carbapenem class intravenous antibiotic, in the United States under a commercial services agreement with AstraZeneca Pharmaceuticals, LP; and DIFICID as the treatment for CDAD in adults under the co-promotion agreement with Optimer Pharmaceuticals, Inc. The company also has collaborations with Forma Therapeutics, Inc. to discover and develop antibacterial compounds; an agreement with the Broad Institute to transform natural products discovery; a collaboration with Hydra Biosciences, Inc., to develop ion channel drugs; and a collaboration agreement with Alnylam Pharmaceuticals, Inc., for the development and commercialization of Alnylam's RNAi therapeutics as a therapy for the treatment of respiratory syncytial virus. The company was founded in 1992 and is headquartered in Lexington, Mas sachusetts. Advisors' Opinion: [By Alyssa Oursler] Another company with a megatrend in its corner is Cubist Pharmaceuticals (CBST) — the midcap stock that will replace Smithfield Foods in the S&P 400. [By Jake Keator] Shares of Cubist Pharmaceuticals (NASDAQ: CBST  ) exploded upward on Friday, finishing up over 9%. The company reported strong second-quarter results Thursday, beating average analyst estimates for both revenue and EPS. Total net revenues were $258.8 million, up 12.2% over Q2 2012, while non-GAAP diluted EPS was $0.42. Average analyst estimates were $254.73 million for revenue and EPS of $0.38. [By Victor Selva] Forest Laboratories has a current ratio of 2.69% which is higher than the ones registered by Endo International Plc (ENDP), Valeant Pharmaceuticals International (VRX) and Cubist Pharmaceuticals Inc. (CBST). For investors looking for a higher ROE, Allergan Inc. (AGN) and Actelion Ltd. (ATLN.VX) are good options. [By Jon C. Ogg] Cubist Pharmaceuticals Inc. (NASDAQ: CBST) was raised to Outperform from Market Perform at Leerink Swann. Diamondback Energy Inc. (NASDAQ: FANG) was downgraded to Hold from Buy at Canaccord Genuity. Top 10 Prefered Companies For 2015: WESCO International Inc. (WCC) WESCO International, Inc. engages in the distribution of electrical, industrial, and communications maintenance, repair, and operating (MRO) products; and original equipment manufacturers products and construction materials. It also provides supply chain management and logistics services. The company offers general and industrial supplies, such as wiring devices, fuses, terminals, connectors, boxes, enclosures, fittings, lugs, terminations, tapes, splicing and marking equipment, tools and testers, safety and security, personal protection, abrasives, cutting tools, consumables, fasteners, janitorial, and other MRO supplies. It also provides wires, cables, raceway, and metallic and non-metallic conduits; and communications products, such as structured cabling systems, broadband products, low voltage specialty systems, specialty wire and cable products, equipment racks and cabinets, access controls, alarms, cameras, and paging and voice solutions. In addition, the company off ers power distribution equipment, such as circuit breakers, transformers, switchboards, panel boards, metering products, and busway products; lighting and controls, including lamps, fixtures, ballasts, and lighting control products; and motor control devices, drives, surge and power protection, relays, timers, pushbuttons, operator interfaces, switches, sensors, and interconnects. Further, it provides value added services in the areas of construction, e-business, energy, engineering services, green and sustainability, production support, safety and security, supply chain optimization, training, and working capital. The company serves industrial and commercial businesses, contractors, governmental agencies, institutions, telecommunications providers, and utilities. It operates in North America and internationally. WESCO International, Inc. was founded in 1922 and is headquartered in Pittsburgh, Pennsylvania. Advisors' Opinion: [By Rich Smith] Instead, the winners who will compete among themselves to fulfill the $45 million firm-fixed-price, multiple-award, indefinite-delivery/indefinite-quantity contract include privately held Bluewater Communications Group LLC, small-cap Globecomm Systems (NASDAQ: GCOM  ) , and TVC Communications LLC, of Annville, Penn., a small subsidiary of larger electronics distributor WESCO International (NYSE: WCC  ) . All three will now be competing against each other to win the Pentagon's business on individual task orders for the Cisco and other HD equipment on order. [By Ben Levisohn] Citigroup’s Deane Dray and team took a long hard look at the U.S. economy and the their ratings on diversified industrial like United Technologies (UTX), Honeywell (HON), Tyco (TYC) and Wesco International (WCC) and decided it was time to makes some changes. Top 10 Prefered Companies For 2015: Ritchie Bros. Auctioneers Incorporated(RBA) Ritchie Bros. Auctioneers Incorporated, an industrial auctioneer, sells various equipment to on-site and online bidders. The company, through unreserved public auctions, sells a range of used and unused industrial assets, including equipment, trucks, and other assets utilized in the construction, transportation, agricultural, material handling, mining, forestry, petroleum, and marine industries. It also provides Internet bidding services, which facilitate customers access to live and online auction participation. The company primarily serves buyers and sellers of equipment, trucks, and other industrial assets; rental companies and brokers; finance companies; and truck and equipment dealers. As of December 31, 2011, it operated approximately 110 locations in approximately 25 countries, including 43 auction sites worldwide. The company was founded in 1963 and is headquartered in Burnaby, Canada. Advisors' Opinion: [By Canadian Value] Australians will remember 2013 in part for the fall of some of our national corporate icons. The Ford Falcon and Holden Commodore are unlikely to be produced domestically going forward, and Qantas has unsuccessfully sought subsidies from the Federal government. Due to elevated cost structures and a high exchange rate, Australia Inc. is increasingly unable to compete in a fiercely competitive global market.High on the Reserve Bank of Australia�� (RBA) Christmas wish-list this year will be a lower exchange rate and a business community more willing to loosen its purse strings in 2014. Unfortunately, the first wish will likely need to be granted before the second can be realized. We expect the RBA will need to keep policy accommodative over the cyclical horizon and 2014 will be a critical transition year for the Australian economy.Over the year through September 2013, real growth in business investment outside the mining sector slowed to almost zero (0.5% to be precise, as shown in Figure 1). Why has Australia Inc. invested so little into its businesses this year? As RBA Deputy Governor Philip Lowe commented in a speech in late October, the lack of business investment in recent years is actually a global phenomenon across the developed world.�Although hard to quantify, this ��nvestment drought,��as Lowe described it, has likely been influenced by a lingering risk aversion after the financial crisis as well as the political uncertainty that has been common in many developed countries over the past few years. But in Australia another variable has also been restraining non-mining capital expenditure, and that is the elevated exchange rate.As Figure 1 shows, changes in the real trade-weighted exchange rate have historically led changes in non-mining business investment. As the real exchange rate appreciates, domestic products and services become less competitive relative to foreign goods and services, both at home and abroad. And of course, the reverse is true w [By Chris Hill] Caterpillar's (NYSE: CAT  ) �first-quarter profit�fell 45% and the company lowered guidance. But its CEO said that his confidence is at a two-year high and sales in China rose. Should investors buy the stock? In this installment, our analysts discuss Caterpillar's future and explain why Ritchie Bros. Auctioneers (NYSE: RBA  ) could be a hidden winner. Top 10 Prefered Companies For 2015: CONSOL Energy Inc (CNX) CONSOL Energy Inc. (CONSOL Energy), incorporated in 1991, is a producer of coal and natural gas for global energy and raw material markets, which include the electric power generation industry and the steelmaking industry. During the year ended December 31, 2011, the Company produced 62.6 million tons of high-British thermal unit (Btu) bituminous coal from 12 mining complexes in the United States. In addition, it provides energy services, including river and dock services, terminal services, industrial supply services, coal waste disposal services and land resource management services. The Company operates in two segments: Coal and Gas. In July 2012, Cloud Peak Energy Inc. acquired Youngs Creek Mining Company, LLC (Youngs Creek) joint venture and other related coal and surface assets from Chevron U.S.A. Inc. (Chevron) and the Company. Coal Operations The principal activities of the Coal unit are mining, preparation and marketing of thermal coal, sold primarily to power generators, and metallurgical coal, sold to metal and coke producers. The Coal division consists of four reportable segments, which includes Thermal, Low Volatile Metallurgical, High Volatile Metallurgical and Other Coal. Each of these reportable segments includes a number of operating segments (mines or type of coal sold). During 2011, the Thermal aggregated segment included the Bailey, Blacksville #2, Enlow Fork, Fola Complex, Loveridge, McElroy, Miller Creek Complex, Robinson Run and Shoemaker mines. During 2011, the Low Volatile Metallurgical coal aggregated segment included the Buchanan mine. During 2011, the High Volatile Metallurgical coal aggregated segment included Bailey, Blacksville #2, Enlow Fork, Fola Complex, Loveridge, Miller Creek Complex and Robinson Run coal sales. The Other Coal segment includes its purchased coal activities, idled mine activities, as well as various other activities assigned to the coal division but not allocated to each individual mine. During 2011, the Company! �� reserves were located in northern Appalachia (62%), the mid-western United States (17%), central Appalachia (15%), the western United States (4%), and in western Canada (2%). As of December 31, 2011, the Company had an estimated 4.5 billion tons of proven and probable reserves. During 2011, 94% of its production came from underground mines, 6% from surface mines, and 91% of its production came from mines equipped with longwall mining systems. As of December 31, 2011, CONSOL Energy operated 22 towboats, five harbor boats and a fleet of 625 barges that serve customers along the Ohio, Allegheny, Kanawha and Monongahela Rivers. During 2011, over 84% of all the coal it produced was sold under contracts with terms of one year or more. Gas Operations The principal activity of the Gas division is to produce pipeline methane gas for sale primarily to gas wholesalers. The Gas Division consists of four reportable segments, which include Coalbed Methane (CBM), Marcellus, Shallow Oil and Gas and Other Gas. The Other Gas segment includes its purchased gas activities, as well as various other activities assigned to the gas division but not allocated to each individual well type. Its gas division focuses on developing the Marcellus acreage position in southwest Pennsylvania, central Pennsylvania and northwest West Virginia. CONSOL Energy�� all Other segment includes terminal services, river and dock services, industrial supply services and other business activities. Its gas operations primarily produce CBM, which is a gas that resides in coal seams. The Company�� Coalbed Methane operations are located in central Appalachia in Southwest Virginia. Its CBM production also comes from northern Appalachia in northwestern West Virginia and southwestern Pennsylvania where it drills vertical-to-horizontal CBM wells. As of December 31, 2011, the Company had rights to extract CBM in Virginia from approximately 359,000 net CBM acres, which cover a portion of its coal reserves in Cen! tral Appa! lachia. CONSOL Energy produces gas primarily from the Pocahontas #3 seam, which is the coal seam mined by its Buchanan Mine. The Company also has right to extract CBM in northwestern West Virginia and southwestern Pennsylvania from approximately 859,000 net CBM acres, which contains its recoverable coal reserves in Northern Appalachia. CONSOL Energy produces gas primarily from the Pittsburgh #8 coal seam. In central Pennsylvania, the Company has the right to extract CBM from approximately 263,000 net CBM acres, which contains its recoverable coal reserves, as well as leases from other coal owners. In addition, CONSOL Energy controls 810,000 net CBM acres in Illinois, Kentucky, Indiana and Tennessee. It also has the right to extract CBM on 139,000 net acres in the San Juan Basin, 20,000 net acres in the Powder River Basin and 92,000 net acres in eastern Ohio and central West Virginia. Its Marcellus wells are primarily horizontal wells with 2,500 to 5,000 feet of lateral length. As of December 31, 2011, the Company had the right to extract natural gas in Pennsylvania, West Virginia and New York from approximately 361,000 net acres. CONSOL Energy controls approximately 346,000 net acres of rights to gas in the New Albany shale in Kentucky, Illinois and Indiana. The New Albany shale is a formation containing gaseous hydrocarbons, and its acreage position has thickness of 50-300 feet at an average depth of 2,500-4,000 feet. CONSOL Energy has 249,000 net acres of Chattanooga Shale. It has 457,000 net acres of Huron shale in Kentucky and Virginia. During 2011, the Company drilled 254.9 net development wells and 47 net developmental wells. Other Operations CONSOL Energy provides other services to its own operations and others. These include land services, industrial supply services, terminal services, including break bulk, general cargo and warehouse services, and river and dock services water services. Fairmont Supply Company, which is CONSOL Energy�� subs! idiary, i! s a general-line distributor of mining, drilling, and industrial supplies in the United States. During 2011, approximately 12.6 million tons of coal was shipped through CNX Marine Terminal Inc.�� exporting terminal in the Port of Baltimore. CONSOL Energy�� river operations, located in Monessen, Pennsylvania, transport coal from its mines, coal from other mines and non-coal commodities from river loadout facilities located primarily along the Monongahela and Ohio Rivers in northern West Virginia and southwestern Pennsylvania. As of December 31, 2011, it operated 22 towboats, five harbor boats and 625 barges. In 2011, its river vessels transported a total of 19.1 million tons of coal and other commodities, including 6.2 million tons of coal produced by CONSOL Energy mines. CONSOL Energy provides dock services for its mines, as well as for third parties at its Alicia Dock, located on the Monongahela River in Fayette County, Pennsylvania. Its subsidiary CNX Water Assets LLC acquires and develops existing sources of water used to support its coal and gas operations. Advisors' Opinion: [By Dimitra DeFotis] Consol Energy (CNX), �which also produces natural gas, was up more than 3%, as was Cloud Peak Energy (CLD). The Moody’s press release, here. Coal insiders were active earlier this year, we noted here. [By Matt DiLallo] The coal used in the process is called anthracite, and the company sources it from Pennsylvania and has it delivered by railroad. Each restaurant uses about 100 pounds of coal per day, which it says burns cleaner and is more eco-friendly than gas or wood-fired methods. All that being said, at 100 pounds per day and just a handful of locations across the country, coal-fired pizza ovens won't be a big future driver for Appalachian basin coal producers like CONSOL Energy (NYSE: CNX  ) or Alpha Natural Resources (NYSE: ANR  ) . [By Claudia Assis] Refiner Valero Energy Corp. (VLO) �topped gainers among energy companies in the S&P 500 index, with shares up 3.7%. Coal producer Consol Energy Inc. (CNX) �was not too far behind, with shares up 2.1%. Marathon Petroleum Corp. (MPC) �rose 1.9%. [By Ben Levisohn] Consol Energy (CNX) isn’t the only coal miner that can beat earnings, as Alpha Natural Resources (ANR) managed that feat today. Walter Energy (WLT), however has fallen after missing badly. Shares of Alpha Natural Resources have gained 4.3% to $4.49 at 11:43 a.m., while Walter Energy has slid 5.1% to $6.83. Consol Energy has risen 2.1% a day after it released its own earnings, while Arch Coal (ACI) has jumped 2.6% to $4.70 and Peabody Energy (BTU) has dipped 0.1% to $18.99. Alpha Natural Resources reported a profit of 7 cents a share, beating forecasts for a loss 58 cents. Sterne Agee’s Michael S. Dudas and Satyadeep Jain explain why positives went beyond earnings: We are pleased to see more industry met supply rationalization; Alpha lowered 2014 met guidance by 1-2 MT. Management is constructive on thermal markets, expects met markets to tighten 2015. Stockpiles for all regions are below normal now; Alpha getting proposals for term business for Central Appalachian coals (CAPP) as well. We would add to or introduce positions at current levels for risk-tolerant investors. Walter Energy reported a loss of $1.50, well below forecasts for a loss of $1.21. Cowen’s Daniel Scott and Bryan Bergin explain why it’s not just Walter Energy’s earnings that disappointed: With the Canadian ops shutting down, the outlook for [Walter Energy] comes down to operating performance at Mine No. 4/7 and maintaining liquidity until seaborne met pricing recovers. While the lack of asset sales commentary may disappoint investors, we are not surprised given the current global met environment. JPMorgan’s John Bridges and Anant Inani were impressed by Consol Energy’s earnings, which were released yesterday. They explain why: Consol reported strong cost performance in Q1 on higher production as well as cost reduction efforts that have now started to pay off. Its cost profile should improve further now tha Top 10 Prefered Companies For 2015: Navios Maritime Partners LP (NMM) Navios Maritime Partners L.P. (Navios Partners) is an international owner and operator of dry cargo vessels formed by Navios Holdings. Navios GP L.L.C. (the General Partner), a wholly owned subsidiary of Navios Maritime Holdings Inc. (Navios Holdings) acts as the general partner of Navios Partners and received a 2% general partner interest in Navios Partners. Navios Partners is engaged in the seaborne transportation services of a range of drybulk commodities, including iron ore, coal, grain and fertilizer, chartering its vessels under medium to long-term charters. On May 19, 2011, Navios Partners acquired from Navios Holdings the Navios Orbiter, a 76,602 deadweight Panamax vessel. On May 19, 2011, Navios Partners acquired from Navios Holdings the Navios Luz. In June 2012, the Company purchased the Navios Buena Ventura, a 2010 South-Korean-built Capesize vessel of 179,259 dwt from Navios Maritime Holdings Inc. The Company is an international owner and operator of drybulk carriers formed by Navios Maritime Holdings Inc., a vertically integrated seaborne shipping company. Its vessels are chartered-out under medium to long-term time charters with an average remaining term of approximately four years to a group of counterparties, consisting of Cosco Bulk Carrier Co. Ltd., Mitsui O.S.K. Lines Ltd., Samsun Logix, STX Panocean, Sanko Steamship Co. Ltd., Daiichi Chuo Kisen Kaisha, Augustea Imprese Maritime, Rio Tinto, Constellation Energy Group and Mansel. As of December 31, 2011, the Company�� fleet consisted of 11 Panamax vessels, six Capesize vessels and one Ultra-Handymax vessel. Its fleet of dry cargo vessels has an average age of approximately 5.6 years. Panamax vessels are flexible vessels capable of carrying a range of drybulk commodities, including iron ore, coal, grain and fertilizer. All of its vessels operate under medium to long-term time charters of three or more years at inception with counterparties. It also operates vessels in the spot market until the vessels have! been fixed under appropriate medium to long-term charters. The Company competes with China Ocean Shipping, China Shipping Group, Mitsui O.S.K. Lines, Kawasaki Kisen, Nippon Yusen Kaisha, Cargill, Pacific Basin Shipping, Bocimar, Zodiac Maritime, Louis Dreyfus/Cetragpa, Cobelfret and Torvald Klaveness. Advisors' Opinion: [By Igor Greenwald] Our Aggressive Portfolio already includes one beneficiary of these trends��avios Maritime Partners (NMM), a partnership with 25 dry bulk carriers, and now, five newly-acquired container ships. 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