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 A little over a year ago, legislation was introduced to expand the universe of Master Limited Partnerships (MLP) to include a number of renewable energy technologies. The Master Limited Partnerships Parity Act (MLPPA) was sponsored in the Senate by Sen. Chris Coons (D-DE) and in the House by US Rep. Ted Poe (R-TX). The summary of the MLPPA (S.795, H.R.1696) reads: Master Limited Partnerships Parity Act - Amends the Internal Revenue Code, with respect to the tax treatment of publicly traded partnerships as corporations, to expand the definition of “qualifying income” for such partnerships to include income and gains from renewable and alternative fuels (in addition to fossil fuels), including energy derived from thermal resources, waste, renewable fuels and chemicals, energy efficient buildings, gasification, and carbon capture in secure geological storage. The bill seeks the same tax treatment for renewable energy partnerships as that given to fossil fuel partnerships. MLPs are designed to lower the cost of capital for companies, but when Congress legislated the rules for publicly traded partnerships in 1987 it required that at least 90 percent of an MLP's income must come from qualified sources, such as real estate or natural resources. Section 613 of the tax code requires qualifying energy sources to be depletable resources or their derivatives such as crude oil, petroleum products, natural gas and coal. Recent case-by-case Internal Revenue Service rulings have expanded the range of activities qualifying for MLP treatment. The MLP Parity Act would further expand the definition of "qualified" sources to projects involving wind and solar power, as well as closed and open loop biomass, geothermal, municipal solid waste, hydropower, marine, fuel cells, and combined heat and power. The bill has bipartisan support, but some Republicans have indicated they would only support! the MLPPA if certain renewable energy subsidies — namely the current Production Tax Credit (PTC) and the solar Investment Tax Credit (ITC) — are eliminated. The ITC is a 30 percent federal tax credit for solar systems on residential and commercial properties, in effect through the end of 2016. The PTC is a tax credit paid for each kilowatt-hour (kWh) of renewable electricity produced. The PTC provides 2.3 cents per kilowatt-hour (¢/kWh) for wind, geothermal, and closed-loop biomass systems, and 1.1¢/kWh for other eligible technologies (typically through the first 10 years of operation). Republicans argued that the MLPPA would merely place another layer of subsidy on top of these tax breaks. Senator Coons opposed eliminating the PTC and ITC in exchange for support on the MLPPA, and the bill has been stuck in committee since (which is where the previous incarnation of this bill died after being introduced in the 112th Congress). Now the Union of Concerned Scientists (UCS) — one of the 235 groups urging passage of the MLPP — has weighed in with an analysis that estimates the bill would expand the investor base for renewable energy and lower the cost of financing projects by 40 percent or more. The analysis further estimates that lower financing costs would reduce the all-in cost of generating electricity from wind projects by 1.2 cents per kilowatt-hour, or about 40 percent of the value of the PTC for wind power. Citing a 2012 study by the National Renewable Energy Laboratory (NREL) that estimates that $50 billion to $70 billion per year in capital investment would be required to increase non-hydro renewables to 30 percent of US electricity generation by 2025, UCS estimates that this level of funding could be a achieved with a shift of 0.7 to 1 percent of the total portfolio of the $15 trillion US mutual fund market and the $11 trillion U.S. defined-benefit pension market. As I argued in Is MLP Parity Act a Game Changer?, solar or wind projects with attra! ctive, lo! ng-term power purchase agreements (PPA) could work well as MLPs, similar to a midstream pipeline operator with long-term fee-based contracts. This is very different from a biofuel offtake agreement, since in most cases advanced biofuels aren't yet economically viable and hence will find it difficult to benefit from a long-term offtake deal structure. In the case of solar, the cost of production can be estimated, and it has continued to fall over the years. Thus solar, wind, geothermal, biomass combustion — all of the current commercially available renewable power production options — could benefit greatly from MLP status. Under the scenario modeled by the UCS, approximately 20 percent of all MLPs could be renewable energy MLPs, which would provide the estimated capital needed to make the shift to 30 percent renewable US electricity generation over the next decade. This is an ambitious target to be sure, but an approach that is preferable in my view to the current system of arbitrary and inconsistent subsidies. But it's going to require Congress to come together and perhaps compromise — which is why the prognosis is that there is only a 1 percent chance that the current Congress will pass the bill. (Follow Robert Rapier on Twitter, LinkedIn, or Facebook.)
Best Machinery Companies To Own In Right Now: AB SKF (SKFRY.PK) AB SKF, formerly SKF AB, is a global supplier of products, solutions and services within rolling bearings, seals, mechatronics, services and lubrication systems. The services provided by the Company include technical support, maintenance services, condition monitoring and training. The Company operates in three divisions: Industrial Division and Service Division, servicing industrial original equipment manufacturers (OEMs) and aftermarket customers respectively, and Automotive Division, servicing automotive OEMs and aftermarket customers. SKF operates in around 40 customer segments, including cars and light trucks, wind energy, railway, machine tool, medical, food and beverage and paper industries. In April 2009, the Company acquired the remaining 49% interest in SKF Polyseal. In February 2008, the Company acquired QPMAerospacess metallic rods business. In October 2008, the Company acquired Cirval S.A Argentina. In November 2008, the Company acquired GLO s .r.l. Italy. In December 2008, the Company acquired the remaining 30% of the operations of SKF Automotive Bearings Company. In September 2008, the Company acquired PEER Bearing Company and its manufacturing units in the Peoples Republic of China and Thailand. Industrial Division The Industrial Division serves industrial OEMs customers in some 30 global industry customer segments with a range of energy-efficient offerings. The solutions and know-how are based on the manufacturing of a wide range of bearings, such as spherical and cylindrical roller bearings, angular contact ball bearings, medium deep groove ball bearings and superprecision bearings, as well as lubrication systems, linear motion products, magnetic bearings, by-wire systems and couplings. Service Division The Service Division serves the global industrial aftermarket providing products and knowledge-based services for customers plant asset effici! ency. T he solutions are based on SKFs knowledge of bearings, sea! ls, lubrication systems, mechatronics and services, and customers are served by SKF and its network of over 7,000 authorized distributors. The division runs a network of Condition Monitoring Centres, which designs and produces global hardware and software. Service Division is also responsible for all SKFs sales in certain markets. Automotive Division The Automotive Division serves manufacturers of cars, light trucks, heavy trucks, buses, two-wheelers and the vehicle service market, supporting them in bringing solutions to global markets. In addition, the division provides energy-saving solutions for home appliances, power tools and electric motors. Within the Automotive Division, SKF develops and manufactures bearings, seals and related products and services. Products include wheel hub bearing units, tapered roller bearings, small deep groove ball bearings, seals, and automotive specialty products for engine, steering and driveline applications. For the vehicle service market, the division provides complete repair kits, including a range of drive shafts and constant velocity joints. Logistics Services SKFs business is supported by its logistics processes and systems, which involve all parts of the logistics needs in the supply chain. SKF Logistics Services provides warehousing, transportation, packaging and inventory management based on seamless information and communication technology for the SKF Group globally. Advisors' Opinion: - [By Stephen Simpson, CFA]
I wrote on bearings and velocity control products company Kaydon (KDN) in early March of this year, and I didn't see a lot of value at the time. As the year went on, that call looked worse and worse, as the stock climbed about 18% - well above the S&P 500, and well above industry peers/competitors like Timken (TKR) and SKF (SKFRY.PK). To top it all off, Kaydon announced this morning (September! 5) that ! it had received and accepted a buyout offer from SKF valuing the company at $35.50 - some 45% higher than the price when I thought it looked only about 10% undervalued. So what did I get wrong here, and what can investors do to avoid a similar mistake? source from USA Best Stocks:http://www.usabeststocks.com/best-machinery-companies-to-own-in-right-now.html
JC Penney’s (JCP) shares have skyrocketed as the company has managed to take itself off deathwatch. That gain is too much for the folks at Imperial Capital, who believe there’s better value in JC Penney’s debt than its equity.  Bloomberg Imperial’s Mary Ross-Gilbert and Seweryn Sztalkoper explain why they like JC Penney’s bonds… We are maintaining out BUY ratings on the longer-dated senior notes (maturing in 2020-2097)…We think the bonds likely continue to trade up (for potential returns of ~20%) on anticipated favorable operating momentum in F2Q14-4Q14, benefiting from: 1) full restoration of private and exclusive brand assortments, 2) the re-merchandise of the “home” department (which was closed for the better part of 2013), 3) elimination of “excess” clearance inventory, and 4) easy comparison to the last two years, which experienced comp sales declines of approximately 30% in F2Q-FQ4. Furthermore, at recent prices in the low-80s, the longer dates bonds create JCP at 37% of revenue (45% excluding excess cash), which compares favorably to other major department store retailers trading in the 43% – 91% range. …and why they don’t like JC Penney’s stock: We are maintaining out Underperform rating on the shares and our one-year price target of $2.50, reflecting the leveraged optionality on the shares based on valuation. With recent favorable upside momentum in the shares, we think JCP could consider another secondary stock offering with proceeds to go toward reducing debt…dilution and valuation using FY15 EBITDA cannot support the current share price. Shares of JC Penney have jumped 4% to $8.94 today.
NEW YORK (AP) — As Memorial Day approaches several theme parks have raised their ticket prices. But don't let that put a damper on your plans. Here are several ways to control the cost of a theme park visit. Tickets It's usually cheaper to buy tickets online than at the gate. Printing tickets out at home also means less time wasted at the park waiting to buy tickets. You'll pay premium prices for one-day tickets, making multi-day tickets a better deal. Universal Orlando's one-day ticket for both of its parks runs $136, but a four-day park-to-park pass is $195.99 — just $49 a day. At some parks, a season pass will pay for itself in two visits. At Universal Studios Hollywood in Los Angeles, you can trade in a single-day general admission ticket for a pass good for the rest of the year at no additional charge. THEME PARKS: USA TODAY's guides to the best theme parks Sign up for park email newsletters, which often include exclusive deals; look for savings on sites like Groupon.com. Check park websites like Disneyworld.com for special offers and planning guides. Christopher Elliott, a National Geographic travel expert and author of How to Be the World's Smartest Traveler, says "a lot of travel agents — particularly AAA agents — have some really great deals not available online." Some parks reduce prices during off-peak hours, like weekdays or late afternoons and evenings. Cedar Point in Sandusky, Ohio, offers cheaper "Starlight Tickets" between 5 p.m. and 10 p.m., a great option for teenagers. Lines are shorter too. Check with your employer, union, university and other groups to see if they have access to park deals. Many parks also offer discounts to members of the military, and many Florida parks offer deals to in-state residents. Check out Costco's web site for theme park discounts. For AAA offers, click on "Entertainment and Attractions" at its web site. Some parks partner with stores or products. Look for Six Flags coupons on Coke ! cans, or enter the promo code "coke" if you're buying Six Flags tickets on Sixflags.com. Fans of Pennsylvania's Hersheypark can get coupons this month at participating Burger King, CVS and Subway locations; Giant Food stores in four states sell discount Hersheypark tickets too. Food and drink Some parks let you bring food and drinks in; others don't. You can always bring a collapsible water bottle and fill it from a fountain. If you're not parked too far away, plan a tailgate picnic at mealtime. At Walt Disney World in Florida, guests can bring a small cooler — no bigger than 24 inches long by 15 inches wide by 18 inches high — as long as it's not on wheels and doesn't contain any glass bottles or alcohol. Rent a locker if you don't want to carry it all day. If you don't mind sharing, the supersized drink is always a better deal than small cups. Some parks offer large souvenir cups with free refills. Parking If you're flying to Orlando or California and plan a multi-day visit to Disney or Universal, consider the cost of car rentals, gas and parking when pricing hotels. Even if rooms are cheaper away from the park, you might save money (and time) staying at a park-run hotel with free shuttles to and from the park. Packages at park-run properties may include other incentives, like meal discounts and extra hours at the park. Elliott notes that "time is money" at a theme park. The longer it takes to get into the park from your car, the less time you have for rides. Extras
Before you go, make a budget for extras. Give the kids $10 or $20 each to blow as they please, but once you set the limit, don't budge. Alternatively, declare all extras off-limits. Stay out of gift shops, ignore pricey souvenir photos of screaming kids on roller coasters, say no to activities with additional fees like carnival game! s, bungee! -jumping and ziplining. Pack well Avoid rip-off prices in the park. Bring sunscreen, camera supplies and rain ponchos from home.
Boeing’s (BA) shares rose yesterday following its investor day, in which it said it would seek to become more like Apple (AAPL). Today, the gains are continuing as investors digest the meat of the presentation.  Reuters Morgan Stanley’s John Godyn and team called Boeing’s presentation “bullish on balance.” They explain why: Consistent with our expectations heading into the event, BA’s investor day was characterized with upbeat commentary, albeit few hard numbers, on key bull-case themes including capital returns, OE cycle fundamentals, and Partnering for Success. More directly related to the stock’s performance through year-end, we left with more confidence in: (1) an uptick in 777 orders, (2) margin beats and (3) continued, elevated buybacks if the stock languishes. 787 deferred production tracking above $25B is a risk this year – but one which appears increasingly well-vetted by an investor base looking to buy dips. As such, we reiterate our Overweight on shares… JPMorgan’s Joseph Nadol and team call the lack of details on the 787 ‘frustrating.’ They explain: Management focused on productivity and cost control at this year's investor meeting, and given the success of Partnering for Success thus far, we see potential for Boeing Commercial Airplanes (BCA) margins to continue to surprise to the upside in the coming quarters and years. However, most of the commentary was qualitative, so it is difficult to pinpoint the earnings opportunity. The path to a 787 deferred production peak of $25 bn by year end was another topic of interest coming in, but Boeing offered little additional data beyond remaining committed to the target. The next meaningful data points should be Q2 and Q3 earnings reports in July and Oct, and we continue to assume Boeing will roughly achieve its guidance on this front, though the investor meeting did nothing to increase (or decrease) our confidence level. And no mention of Apple in either one. Shares of Boeing have gained 0.9% to $132.19 at 10:24 a.m., while fellow jet makers Embraer (ERJ) and Airbus (EADSY) have risen 0.9% and 0.6%, respectively. Shares of Apple have dropped 0.2% to $605.25.
Fed taper speculation and rising Treasury yields have been like garlic for a vampire, causing the once-popular sector to underperform. The Utilities Select Sector SPDR (XLU) has gained 9.5% this year, less than half the S&P 500′s 21% return. Reuters The underperformance, however, might be good news for utility investors, Goldman Sachs says. Analyst�Michael Lapides and team write: Utilities now trade at or even slightly below their average levels over the last 5-10 years, which should enable Regulated Utilities to act defensively again. With yields on the 10-year Treasury rising over 100 bps since May 2013, multiple compression for utilities has brought sector valuations back closer to 5-10 year average levels ��3.5x-14.0x our 2015 earnings estimates. While peak valuations in 2012-2013 implied utilities would struggle to act defensively during a period of rising interest rates, current valuations imply this is less of a headwind ��especially given our economists��expectations for Treasury yield increases to slow from the spike seen over the last few months to a slower grind higher. Hot Defensive Stocks To Own For 2015: Weir Group PLC (WEIR) The Weir Group PLC is engaged in engineering businesses. It operates in three segments: Minerals, Oil and Gas, and Power and Industrial. The Minerals segment provides slurry handling equipment and associated aftermarket support for abrasive high wear applications used in the mining and oil sands markets. The Oil & Gas segment provides products and service solutions to upstream, production, transportation, refining and related industries. The Power & Industrial segment designs and manufactures valves, pumps and turbines as well as providing specialist support services to the global power generation, industrial and oil and gas sectors. The Company�� subsidiaries include American Hydro Corporation, EnviroTech Pumpsystems Inc, Gema Industrigummi AB, Linatex Rubber Products Sdn Bhd and Mesa Manufacturing Inc. Advisors' Opinion: Hot Defensive Stocks To Own For 2015: Arc Wireless Solutions Inc.(ARCW) ARC Wireless Solutions, Inc., together with its subsidiaries, provides wireless network components and solutions in the United States. It is involved in the design, development, manufacture, marketing, and sale of antennas and related wireless communication systems, including cellular base stations, mobiles, cellulars, and flat panel antennas. The company?s products also include global positioning systems; and conformal, portable, and other antennas, as well as antenna accessories. ARC Wireless Solutions, Inc. markets its commercial line of antennas directly to distributors, installers, and retailers of antenna accessories, as well as to commercial, government, and retail markets. It offers its products under the Freedom Antenna Exsite, Omnibase, Parity, Arc Vlpa, Airbase, and And Freedom Blade brand names. The company was formerly known as Antennas America, Inc. and changed its name to ARC Wireless Solutions, Inc. in October 2000. ARC Wireless Solutions, Inc. was founded in 1987 and is based in Denver, Colorado. Advisors' Opinion: - [By Jake L'Ecuyer]
Meanwhile, top decliners in the sector included ARC Group Worldwide (NASDAQ: ARCW), down 6.8 percent, and 8x8 (NASDAQ: EGHT), off 5.7 percent. Top Headline
Apple (NASDAQ: AAPL) is in talks to acquire headphone maker Beats Electronics, according to a Financial Times report from Thursday afternoon. The deal is rumored to be around $3.2 billion, which would make it Apple's largest acquisition to date.
Hot Defense Stocks To Own For 2015: Meru Networks Inc.(MERU) Meru Networks, Inc., together with its subsidiaries, provides wireless local area network (LAN) solutions in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. It offers a virtualized wireless LAN solution based on its System Director Operating System, which runs on its controllers and access points to enable enterprises to deliver business-critical applications over wireless networks. The company?s System Director Operating System provides centralized coordination and control of various access points on the network; controllers synchronize access points to optimize the user experience and manage traffic on the network; and Wi-Fi certified access points to provide network connectivity for wireless devices. It also offers Meru Networks E(z)RF application suite comprising E(z)RF Network Manager, E(z)RF Service Assurance Manager, E(z)RF Location Manager, E(z)RF OnTheGo, Spectrum Manager, and wired and wireless management solutions, which enable enterprises to configure, monitor, troubleshoot, secure, and operate virtualized wireless LAN solution. In addition, the company provides Identity Manager that simplifies enterprise network access and identity management; Wireless Intrusion Prevention System to recognize and mitigate threats; Compliance Manager to reduce the risk of security breach by protecting customer and employee personal information by extending security to the wireless network; AirFirewall to intercept and block unwanted communications as they transmit over the air, stopping them before they reach the network; and Security Gateway SG1000 to meet the demands of the Federal Information Processing Standard, 140-2 Level 3 security required by federal government agencies and other security-conscious organizations. It serves the education, healthcare, hospitality, manufacturing, retail, technology, finance, government, telecom, transportation, and utility markets. The company was founded in 2002 and is headquartered in Sunnyvale, California. Advisors' Opinion: - [By Eric Volkman]
Meru Networks (NASDAQ: MERU ) isn't wasting any time in finding a successor to one of its top executives. The company announced Monday it had appointed Brian McDonald to be its new CFO to replace the resigning Brett White. McDonald took up his position today, although White will remain at the firm through July 1 in order "to effect a smooth transition."
Hot Defensive Stocks To Own For 2015: Royale Energy Inc.(ROYL) Royale Energy, Inc. operates as an independent oil and natural gas producer in the United States. It engages in the production and sale of oil and natural gas; acquisition of oil and gas lease interests and proved reserves; drilling of exploratory and development wells; and sale of working interests in wells to be drilled. The company also owns wells and leases located principally in the Sacramento Basin and San Joaquin Basin in California, as well as in Utah, Texas, and Louisiana. In addition, it holds proved developed producing reserves of oil and natural gas in Texas and Louisiana. As of December 31, 2009, Royale Energy operated 52 natural gas wells in California; owned and operated 7 natural gas wells in Utah; and had non operating interests in 17 oil and gas wells in Texas, 3 in Oklahoma, 1 in California, and 2 in Louisiana. It also had proved developed reserves of 4,563 MMcf and total proved reserves of 4,617 MMcf of natural gas; and proved developed oil reserves of 16 Mbbl and total proved oil reserves of 16 Mbbl. The company was founded in 1986 and is based in San Diego, California. Advisors' Opinion: - [By James E. Brumley]
With nothing more than a passing glance at Royale Energy, Inc. (NASDAQ:ROYL), it would be easy to dismiss it as just another volatile small caps... one of many small cap stocks that gets a little squirrelly every now and then. The longer you study the chart of ROYL, however, the clearer it becomes... this chart looks like it's coming out of a slightly bearish lull and working its way into an uptrends. - [By James E. Brumley]
Does the name Royale Energy, Inc. (NASDAQ:ROYL) ring a bell? If you're a regular reader of the Small Cap Network site or newsletter, it might. Back on February 3rd, yours truly penned some bullish thoughts on the way ROYL was acting at the time. Given what we had seen up until that time, though Royale Energy had not yet begun to rally, the stock was getting within reach of a monster-sized breakout. Well, that breakout may be underway as of today.
Hot Defensive Stocks To Own For 2015: Oculus Innovative Sciences Inc.(OCLS) Oculus Innovative Sciences, Inc. develops, manufactures, and markets tissue care products that prevent and treat infections in open wounds and skin care, as well as, through a separate mechanism of action, heal wounds while reducing the need for antibiotics. The company, through its platform technology, Microcyn, a solution of electrically charged oxychlorine small molecules treats organisms that cause disease, which include viruses, fungi, spores, and antibiotic-resistant strains of bacteria, such as methicillin-resistant Staphylococcus aureus and vancomycin-resistant Enterococcus in wounds, as well as Clostridium difficile. It sells Microcyn technology-based human wound care products as prescription and over-the-counter products. The company markets its products through sales force and distributors in the United States, Mexico, Europe, and internationally. Oculus Innovative Sciences, Inc. offers its products to pharmacies; care centers; hospitals; nursing homes; urgent c are clinics; home healthcare; physicians; nurses; and other healthcare practitioners who are the primary caregivers to patients being treated for acute or chronic wounds or undergoing surgical procedures, as well as to dermatologists for treatment of various skin afflictions. The company was formerly known as Micromed Laboratories, Inc. and changed its name to Oculus Innovative Sciences, Inc. in August 2001. Oculus Innovative Sciences was incorporated in 1999 and is based in Petaluma, California. Advisors' Opinion: - [By John Udovich]
Small cap stocks Derma Sciences Inc (NASDAQ: DSCI), Oculus Innovative Sciences, Inc (NASDAQ: OCLS)�and Arch Therapeutics Inc (OTCBB: ARTH) specialize or have a focus on wound care���a medical problem that has plagued mankind since the dawn of time. After all and think back to our Civil War when disease along with infections resulting from improper wound care probably killed more soldiers than actual battles. Even today, infection after surgery or after receiving a wound or injury of any kind is still a constant threat. And then there is the scaring that can result from any sort of invasive surgery or injury. With those thoughts in mind, here are three small cap wound care stocks trying address these problems:
 Sue Ogrocki/AP Home Depot (HD) the world's largest home improvement chain, said its sales were "robust" in May and that it expected to realize in the current quarter most of the sales lost in the first quarter due to a severe winter in the United States. Shares of the company, which reported lower-than-expected first-quarter sales, rose 2.7 percent Tuesday in morning trading. Home Depot said its sales of landscape items and products such as concrete were improving as a result of repairs needed after the harsh winter weather. The company gets much of its business from building contractors, who are vulnerable to weather-related disruptions. Spring is also an important time for the company, as households prepare their gardens and get set for the barbecue season. Home Depot maintained its sales growth forecast of 4.8 percent for the year ending January, but analysts were skeptical. A slowing recovery in the U.S. housing market could make it difficult for Home Depot to meet its reiterated sales growth forecast, they said. "We remain neutral as we worry that a weaker housing market will impact sales as the year progresses," Janney Capital Markets analyst David Strasser wrote in a note. U.S. homebuilder sentiment weakened unexpectedly in May to its lowest in a year, the National Association of Home Builders said last week. Sales of previously owned homes fell each month in the first quarter, while new home sales declined in February and March. Home Depot, however, said that though housing statistics were not as robust as last year, they were not materially different from the assumptions the company based its expectations on. "Our fundamental view of the recovery in the home improvement market has not changed," Chief Executive Officer Francis Blake said on a post-earnings call. Home Depot rival Lowe's Cos. (LOW) is due to report its results Wednesday. Home Depot also raised its full-year earnings forecast to $4.42 a share from $4.38 a share. The increase reflects a 4 cents a share benefit from the sale of shares in HD Supply Holdings Inc and share buybacks this year. The company said it intended to buy back up to $3.75 billion additional shares this year. Home Depot's sales rose 2.9 percent to $19.69 billion in the first quarter ended May 4. Comparable-store sales increased 2.6 percent. Net income rose 12 percent to $1.38 billion, or $1 a share. The company earned 96 cents a share, excluding a 4 cent benefit related to the sale of HD Supply shares. Analysts on average had expected a profit of 99 cents a share on sales of $19.95 billion, according to Thomson Reuters I/B/E/S.
    Popular Posts: MLPs Are Absolutely Killing ItFirst Solar Crushes First-Quarter Earnings. Buy FSLR Stock at Will.The Rise in Coal Stocks Will Burn Up Quickly Recent Posts: Should You Invest in High-Dividend Royalty Trusts? Want to Play Renewable Energy? Focus on the New YieldCos The Rise in Coal Stocks Will Burn Up Quickly View All Posts  There are plenty of ways for investors to make money in the oil patch –from actually drilling wells to moving oil through pipelines to refining and selling energy downstream to end users.
Recently, Canada's largest natural gas producer EnCana (ECA) highlighted one of the most ignored ways to profit from the energy sector; ECA announced that they will place around 5.2 million acres worth of oil and gas reserves/wells in Alberta, Canada into a new subsidy called PrairieSky Royalty. EnCana will sell shares of the firm in order to raise some much needed cash. PrairieSky should IPO by mid-June. The key for ECA and, ultimately for investors, is that the new shares will actually be a royalty trust. Often overlooked, royalty trusts offer income seekers a chance to get some pretty high dividends. So what exactly are royalty trusts, and do they below in your portfolio? A Royalty Trust Primer PrairieSky won't actually be drilling for oil or natural gas on its properties, nor will it be transporting it through pipelines. That’s because a royalty trust is an entity that own the production rights on oil wells, natural gas fields or, as in the case of Great Northern Iron Ore Properties (GNI), iron ore mines. That means other firms do the heavy lifting, and the royalty trust owners sit back and collect fees & mineral rights tied to that production. There’s no growth plan here, since royalty trusts are strictly finance vehicles for the underlying land owners — and as a result, a reliable income stream for investors. In the case of PrairieSky, its 5.2 million acres are being tapped by such firms as Devon (DVN) and Apache (APA). For the owners of the royal trust units, they are treated to some hefty dividends. Like master limited partnerships (MLPs) and real estate investment Trusts (REITs), royalty trusts are designed as "pass-through entities" that get preferential tax treatment because of their business model. As such, they kick-back virtually all of what they earn in the form of distributions to shareholders. And because of that fact, these investment vehicles often yield in excess of 7%. Another added benefit is that due to depreciation and depletion, distributions from most trusts are not considered income in the eyes of the IRS. These non-income distributions are treated as return of capital and are used to reduce an owner’s cost basis in the royalty trust. Owners are taxed once they sell at the lower cost basis or if that basis hits zero. Now despite the benefits, royalty trust do come with some risks as well. The first is, obviously, commodity pricing risk. Many of the royalty trusts underlying fees are tied directly to the prices of oil and natural gas pulled from their lands. If natural gas is trading at multi-decade highs, their cash flows and dividends will reflect that with big paydays for investors. Consequently, if it's at lows, you'll see dramatically lower pay-outs. Many trusts monthly dividends fluctuate rapidly based on commodity prices. Then there is the most important aspect of all: royalty trusts have a finite life span. As finance vehicles, the trusts aren’t allowed to add new acreage or wells to their holdings. That means when the oil and natural gas are gone, they’re gone, too. As the energy is produced and depleted, distributions will fall and eventually hit zero… As will the trusts share price. Three Top Royalty Trusts With EnCana only filing the shelf registration for PrairieSky trust, investors looking to add some royalty trust income to their portfolios do have a few options. Here's three high yielding trusts to consider. BP Prudhoe Bay Royalty Trust (BPT): BPT is the largest conventional oil and gas trust in the U.S. and was originally formed in 1989 by BP (BP). The royalty trust collects fees on the first 90,000 barrels of oil collected in the massive Prudhoe Bay oil field located on Alaska’s North Slope. While production in Prudhoe Bay have slipped over the last few years, BPT is expected to continue pumping out dividends for another 15 years. This royalty trust yields a very hefty 11% based on the last four distributions. San Juan Basin Royalty Trust (SJT): Rising natural gas prices have been a boon to SJT as the royalty trust owns natural gas wells located in New Mexico. Units of trust are up around 30% this year on the back of these higher prices. Also up are SJT's distributions. The royalty trust paid out 4 cents per share per month last year. This May, SJT paid 10 cents- a nice 150% gain in dividends. SJT currently yields over 6% based on the last 12 months of monthly dividend payments. VOC Energy Trust (VOC): Formed by a private energy firm, VOC owns both oil and gas wells in has wells in Kansas and Texas. The royalty trust owns an 80% net royalty on the wells on its properties. That makes a prime play on rising energy prices- no matter which fuel is doing well. VOC’s royalties will expire at the end of 2031 and yield no terminal value. Meaning shares will go to zero. Yet, VOC features a trailing yield of about 14% based on the last four payments. As of this writing, Aaron Levitt did not own a position in any of the stocks named here.
Darden Restaurants said on Friday it has agreed to sell its Red Lobster casual dining chain and related real estate assets to investment firm Golden Gate Capital for $2.1 billion. Shares of Darden fell $2.20, or 4.3%, to close at $48.49 on Friday. The deal lets Darden shed its worst-performing chain to pay off some debt and focus on its flagship Olive Garden chain, which also has been struggling. Darden will receive net cash proceeds, after tax and transaction costs, of about $1.6 billion for the seafood chain with 700 restaurants in the U.S. and Canada. Orlando-based Darden says it will use $1 billion to pay off debt and use the rest to buy back shares. Sales at casual dining restaurants have been sluggish, with industry analysts blaming a general lack of innovation and also less appeal for younger consumers. Darden had considered various plans for unload Red Lobster, including a spin-off. Darden also approached real estate buyers about sale-leaseback financing for the business. Golden Gate, a private equity firm in San Francisco, announced a sale-leaseback deal Friday, to reduce its exposure to Red Lobster's real estate. In the $1.5 billion deal with American Realty Capital Properties for more than 500 Red Lobster restaurants, Golden Gate will sell the land and buildings to ARCP and lease them back. Darden said it chose Golden Gate because it was an all-cash offer and the deal allows the company to maintain its current dividend of 55 cents per share, or $2.20 per year. Red Lobster has been the laggard among Darden's chains, which also include LongHorn Steakhouse and The Capital Grille. In the fiscal third quarter ended Feb. 23, Red Lobster's sales at locations open at least a year fell 8.8% from a year ago to $611 million, and visits were down nearly 12%. In comparison, LongHorn Steakhouse sales rose 0.3%, while Oliv! e Garden reported a 5.4% decline. The company said that removing Red Lobster from its portfolio frees it to focus on reinvigorating Olive Garden, the company's leading revenue generator. "We believe this agreement addresses key issues that our shareholders have raised, including the need to preserve the company's dividend and regain momentum at Olive Garden," said Darden CEO Clarence Otis in a statement.
Asking whether Ford (NYSE: F ) or General Motors (NYSE: GM ) are good investments is very much like asking whether the global economy is growing or shrinking. We can talk about what type of auto models they've released, how well they're performing in China, the size of their unfunded pension liabilities, the number of plants open, and so on, until we're blue in the face. Ultimately, the only thing that matters to automakers is whether people have money that they want to spend on cars. It's very easy to see the relationship on a chart of Ford's stock price and its earnings per share since the beginning of the dot-com growth period of the 1990s: F Total Return Price data by YCharts Everyone wins during the dot-com bubble, including the automakers that happened to be perfectly positioned at the crossroads of the greatest wealth expansion in global history, and the widespread popularity of big, bulky, and very profitable vehicle platforms. Then, money gets a bit tighter. Luckily, all those refinanced mortgages during the subprime bubble gave a lot of car buyers their driving-around money. Where are we now? Well, from the looks of it, we're near the top of another auto-buying slowdown, the result of another economic slowdown. Top China Companies To Own For 2015: China Gerui Advanced Materials Group Limited(CHOP) China Gerui Advanced Materials Group Limited engages in the manufacture and sale of cold-rolled narrow strip steel products in the People's Republic of China. The company converts steel manufactured by third parties into thin steel sheets and strips. It sells its products directly to its customers in a range of industries, including food and industrial packaging, construction and household decorations materials, electrical appliances, and telecommunications wires and cables industries. The company was formerly known as Golden Green Enterprises Limited and changed its name to China Gerui Advanced Materials Group Limited in December 2009. China Gerui Advanced Materials Group Limited is based in Zhengzhou, China. Advisors' Opinion: - [By Jake L'Ecuyer]
Leading and Lagging Sectors
On Tuesday, the basic materials sector proved to be a source of strength for the US market after Yellen statement. Huntsman (NYSE: HUN) shares surged 2.62 percent after reporting strong quarterly earnings, while China Gerui Advanced Materials Group (NASDAQ: CHOP) gained around 2.5 percent.
Top China Companies To Own For 2015: Renesola Ltd.(SOL) ReneSola Ltd, together with its subsidiaries, engages in the manufacture and sale of solar wafers and solar power products. It offers virgin polysilicons, monocrystalline and multicrystalline solar wafers, and photovoltaic cells and modules. The company also provides cell and module processing services. Its products are used in a range of residential, commercial, industrial, and other solar power generation systems. The company sells its solar wafers primarily to solar cell and module manufacturers. It principally operates in Mainland China, Singapore, Taiwan, Hong Kong, Korea, India, Australia, Germany, Italy, Spain, Belgium, France, the Czech Republic, and the United States. The company was founded in 2003 and is based in Jiashan, the People?s Republic of China. Advisors' Opinion: - [By Travis Hoium]
What: Shares of solar manufacturer ReneSola (NYSE: SOL ) jumped as much as 26% today after the company increased guidance. So what: Management said that second-quarter shipments would be 760 MW-770 MW, well above the previous expectation of 700 MW-720 MW. Gross margin is also expected to be 5%-6%, above the 3%-5% previously expected. � - [By Travis Hoium]
There will be winners, though. Shares of polysilicon maker Renewable Energy fell 7% in trading immediately after the announcement because the company will likely see either lower prices or lower demand. But shares of GCL Poly, who manufactures in China and is the biggest polysilicon maker in the world, jumped 4% on Friday after the news was announced.�Renesola� (NYSE: SOL ) and LDK Solar� (NYSE: LDK ) also have lots of unused polysilicon capacity that will likely experience more demand because of the move. The question is if they have sufficient quality to supply the industry.
Best Small Cap Companies To Buy Right Now: Clean Diesel Technologies Inc.(CDTI) Clean Diesel Technologies, Inc. engages in the manufacture and distribution of emissions control systems and products for heavy duty diesel and light duty vehicle markets. The company operates in two divisions, Heavy Duty Diesel Systems and Catalyst. The Heavy Duty Diesel Systems division designs and manufactures verified exhaust emissions control solutions that are used to reduce exhaust emissions created by on-road, off-road, and stationary diesel and alternative fuel engines, including propane and natural gas. Its products include closed crankcase ventilation systems, diesel oxidation catalysts, diesel particulate filters, Platinum Plus fuel-borne catalysts, ARIS selective catalytic reduction reagents, catalyzed wire mesh diesel particulate filters, alternative fuel products, and exhaust accessories. This division offers its products for original equipment manufacturers of heavy duty diesel equipment, such as mining equipment, vehicles, generator sets, and construction equipment, as well as retrofit customers consisting of school districts, municipalities, and other fleet operators. The Catalyst division produces catalyst formulations using its proprietary MPC technology for gasoline, diesel, and natural gas induced emissions. Its products comprise catalysts for gasoline engines, diesel engines, and energy applications. This division supplies its catalysts to automotive manufacturers and large heavy duty diesel engine manufacturers. The company sells its products through a network of distributors and dealers, and its direct sales force worldwide. Clean Diesel Technologies, Inc. is based in Ventura, California. Advisors' Opinion: - [By James E. Brumley]
Did you miss today's 123% pop from Clean Diesel Technologies, Inc. (NASDAQ:CDTI)? If you didn't chase it higher after the bullish gap left behind at the open, then good for you - you made the right choice. As tempting as CDTI looked then (and still does), the bulk of any near-term gain here has already been realized, and there's no real point in jumping on the bandwagon now. Fear not if you missed the big move from Clean Diesel Technologies though. There's another, smaller name playing the same game, and you won't have to pay a fortune for it just to take a big risk. - [By Paul Ausick]
One Nasdaq stock posting outsized gains today is Clean Diesel Technologies Inc. (NASDAQ: CDTI) which is getting a share price boost of 68.85%. The company announced that it will begin shipping emissions control systems��catalysts to Honda in the first half of this year. The stock will close at around $4.82 in a 52-week range of $1.10 to $7.39 (the high was set today and was nearly double Monday�� closing price of $2.83). Volume was about 36-times the daily average of around nearly 525,000 shares traded. - [By CRWE]
Clean Diesel Technologies, Inc. (Nasdaq:CDTI), a cleantech emissions control company, will be a presenter at the 3rd Annual Craig-Hallum Capital Group Alpha Select Conference. The presentation is scheduled for 2:10 p.m. ET on Thursday, September 27, 2012 at the Sentry Centers in New York. - [By Bryan Murphy]
Look out Clean Diesel Technologies, Inc. (NASDAQ:CDTI), and Cummins Inc. (NYSE:CMI), you may want to take notice too. Little HydroPhi Technologies Group, Inc. (OTCMKTS:HPTG) is about to make a big splash in your pool, which could make life very difficult and much easier (respectively) for the two of you. How's that? In simplest terms, all signs point to HydroPhi Technologies' diesel efficiency working quite well, saving those who use it money, while simultaneously saving the environment.
Top China Companies To Own For 2015: Euro/Yen(EJ) E-House (China) Holdings Limited, through its subsidiaries, operates as a real estate services company in China. It provides primary real estate agency services, secondary real estate brokerage services, real estate information and consulting services, real estate advertising services, real estate promotional event services, real estate online services, and real estate investment fund management services. The company offers primary real estate agency services to real estate developers. Its secondary real estate brokerage services include offering advisory services on choices of properties; accompanying potential buyers on house viewing trips; drafting purchase contracts; negotiating price and other terms; and providing preliminary proof of title, as well as coordinating with the notary, the bank, and the title transfer agency. The company also provides real estate information services comprising data subscription services and data integration services; and real estate cons ulting services, including land acquisition consulting, development consulting, marketing consulting, and comprehensive solution consulting. In addition, it offers real estate advertising services consisting of advertising design and sales in print and other media; and real estate promotional event services, including securing venues, hiring caters and other various service providers, formulating event themes, and inviting speakers and guests for real estate promotional events. Further, the company provides real estate online services, including real estate news, information, property data, and access to online communities to real estate consumers and participants through local Web sites; and involves in real estate investment fund management activities that consist of investments in China?s real estate sector. E-House (China) Holdings Limited was founded in 2000 and is headquartered in Shanghai, the People?s Republic of China. Advisors' Opinion: - [By Belinda Cao]
E-House China Holdings Ltd. (EJ), a real estate brokerage, gained 9.2 percent to $9.70, extending it advance to a third week. Its American depositary receipts retreated 3.1 percent Sept. 20 from the highest level since May 2011. - [By Jake L'Ecuyer]
Leading and Lagging Sectors
Wednesday morning, the financial sector proved to be a source of strength for the market. Leading the sector was strength from SouFun Holdings (NYSE: SFUN) and E-House (China) Holdings (NYSE: EJ). In trading on Wednesday, energy shares were relative laggards, down on the day by about 0.67 percent. Among the energy stocks, Endeavour International (NYSE: END)was down more than 22 percent, while TransGlobe Energy (NASDAQ: TGA) tumbled around 6 percent. - [By Seth Jayson]
E-House (China) Holdings (NYSE: EJ ) reported earnings on May 16. Here are the numbers you need to know. The 10-second takeaway
For the quarter ended March 31 (Q1), E-House (China) Holdings crushed expectations on revenues and beat expectations on earnings per share. - [By Richard Schmidt]
Shares of e-House Holdings Limited (EJ) finally came to life in the last five months of last year. They cooled off in January, but moved back up in February.
Top China Companies To Own For 2015: CNinsure Inc.(CISG) CNinsure Inc., together with its subsidiaries, provides insurance brokerage and agency services, and insurance claims adjusting services in the People?s Republic of China. The company offers property, casualty, and life insurance products underwritten by domestic and foreign insurance companies operating in China. Its property and casualty insurance products include automobile, individual accident, commercial property, homeowner, cargo, hull, liability, and construction insurance; and life insurance products comprise individual whole life insurance, term life insurance, education annuity, and health insurance, as well as universal insurance and group life insurance. The company also offers insurance claims adjusting services, which include pre-underwriting survey, claims adjusting, disposal of residual value, loading and unloading supervision, and consulting services, as well as damage assessment, survey, authentication, and loss estimation to insurance companies and the i nsured; and value-added services to its customers in conjunction with distributing automobile insurance products. As of April 15, 2010, its distribution and service network consisted of 49 insurance agencies, 3 insurance brokerages, and 4 claims adjusting firms, with 571 sales and service outlets. The company was founded in 1998 and is headquartered in Guangzhou, the People?s Republic of China. Advisors' Opinion: - [By Jake L'Ecuyer]
Financial sector was the leading decliner in the US market today. Top losers in the sector included GSV Capital (NASDAQ: GSVC), off 9.3 percent, and Cninsure (NASDAQ: CISG), down around 6.6 percent.
Top China Companies To Own For 2015: China Automotive Systems Inc.(CAAS) China Automotive Systems, Inc., through its interests in Sino-foreign joint ventures, engages in the manufacture and sale of power steering systems and other component parts for the automotive industry in the People?s Republic of China. It offers a range of steering system parts for passenger automobiles and commercial vehicles. The company provides 4 separate series, 307 models of power steering, including rack and pinion power steering, integral power steering, electronic power steering and manual steering, steering columns, steering oil pumps, and steering hoses. China Automotive Systems, Inc. was founded in 2003 and is headquartered in Jing Zhou City, the People?s Republic of China. Advisors' Opinion: - [By Richard Schmidt]
China Automotive Systems (CAAS), which makes auto systems and components, reported record-high net sales for the third quarter. The report excited investors, who bid the stock up about 30% for the month.
Top China Companies To Own For 2015: Home Inns & Hotels Management Inc.(HMIN) Home Inns & Hotels Management Inc. develops, leases, operates, franchises, and manages a chain of economy hotels in the People?s Republic of China. The company operates its hotels under the Home Inn brand name. As of April 28, 2011, it had approximately 800 Home Inns in operation and 1,000 Home Inns sealed in franchise agreements. The company was incorporated in 2001 and is headquartered in Shanghai, the People?s Republic of China. Advisors' Opinion: - [By Monica Gerson]
Home Inns & Hotels Management (NASDAQ: HMIN) is estimated to post its Q4 earnings at $2.18 per share on revenue of $1.54 billion. Qiwi plc (NASDAQ: QIWI) is expected to report its Q4 earnings at $0.28 per share on revenue of $50.00 million. - [By Seth Jayson]
Home Inns & Hotels Management (Nasdaq: HMIN ) reported earnings on May 13. Here are the numbers you need to know. The 10-second takeaway
For the quarter ended March 31 (Q1), Home Inns & Hotels Management missed estimates on revenues and beat expectations on earnings per share.
Top China Companies To Own For 2015: Bitauto Holdings Limited (BITA) Bitauto Holdings Limited provides Internet content and marketing services for the automotive industry primarily in the People?s Republic of China. The company offers subscription services to new automobile dealers that enable them to list pricing and promotional information on its bitauto.com Website and partner Websites, and to interact with consumers through its virtual call center, as well as provides advertising service to dealers and automakers on its bitauto.com Website. It also offers listing services to used automobile dealers, which enable them to display used automobile inventory information through its ucar.cn Website and partner Websites; and advertising services to used automobile dealers and automakers with certified pre-owned automobile programs on its ucar.cn Website. In addition, the company provides digital marketing solutions, including Website creation and maintenance, online public relationship, online marketing campaigns, and advertising agent service s. Bitauto Holdings Limited was founded in 2000 and is headquartered in Beijing, the People?s Republic of China. Advisors' Opinion: - [By Victor Selva]
The firm is currently Zacks Rank # 3��old, and it also has a longer-term recommendation of ��eutral�� A Hold rating indicates that the stock, over the next 1 to 3 months, will perform at an annualized rate of 10.56%, very similar to the S&P 500. For investors looking for a better Zacks Rank, Bitauto Holdings Limited (BITA), E-Commerce China Dangdang Inc. (DANG) and Vipshop Holdings Limited (VIPS) could be better options. - [By Evan Niu, CFA]
What: Shares of Bitauto (NYSE: BITA ) have plunged today by as much as 18% after the company reported first-quarter earnings. So what: Revenue in the first quarter added up to $38.6 million, which translated into non-GAAP profits of $3.7 million. The top and bottom lines were up 34.6% and 29.1% relative to a year ago, but investors were still left wanting more. The results were in line with Bitauto's guidance. - [By Jake L'Ecuyer]
Leading and Lagging Sectors
Technology stocks gained Tuesday, with Ku6 Media Co (NASDAQ: KUTV) leading advancers. Among leading tech stocks, gains came from Rubicon Technology (NASDAQ: RBCN), Bitauto Holdings (NYSE: BITA) and Sify Technologies (NASDAQ: SIFY).
Top China Companies To Own For 2015: Netease.com Inc.(NTES) NetEase.com, Inc., an Internet technology company, engages in the development of applications, services, and other technologies for the Internet in China. It provides online game services to Internet users through the in-house development or licensing of massively multi-player online role-playing games, including Fantasy Westward Journey, Westward Journey Online II, Westward Journey Online III, Tianxia II, Heroes of Tang Dynasty, and Datang, as well as the licensed game, Blizzard Entertainment's World of Warcraft. The company also offers online advertising on its Web sites. In addition, NetEase has paid listings on its search engine and Web directory, and classified advertising services, as well as an online mall, which provides opportunities for e-commerce and traditional businesses to establish their own storefront on the Internet. Further, it provides wireless value-added services, such as news and information content, matchmaking services, music, and photos from the We b over SMS, MMS, WAP, IVR, and Color Ring-back Tone technologies. Additionally, the company offers community services, including instant messaging, online personal advertisements, matchmaking, alumni clubs, and community forums; and aggregates news content on world events, sports, science and technology, and financial markets, as well as entertainment content, such as cartoons, games, astrology, and jokes from over 100 international and domestic content providers. NetEase.com, Inc. was founded in 1997 and is based in Beijing, the People?s Republic of China. Advisors' Opinion: - [By Jake L'Ecuyer]
NetEase (NASDAQ: NTES) was down, falling 4.55 percent to $66.25 after the company posted its Q3 unaudited financial results. Deutsche Bank downgraded the stock from Buy to Hold. - [By Victor Selva] hem. Ever since the Chinese gaming market exploded into a multi-billion dollar business, this online game operator has managed to reach its competitors SINA Corp. (SINA) and Sohu.com Inc. (SOHU), via an extensive brand portfolio of in-house and licensed games. Some of the core online games include Fantasy Westward Journey, Westward Journey Online II and Ghost II.
With Founder and CEO William Ding holding the reigns, this company has taken flight, in particular with its efficient game publishing initiatives and in-house research capabilities. In this article I analyze NetEase Inc.'s past profitability, debt, capital and operating efficiency. I will also take a look at which institutional investors have recently bought stock shares in the last quarter, and based on this information, we will get an understanding of the company' revenues, operating metrics and quality of earnings. Profitability Analysis Profitability is a class of financial metric used to analyse a business��ability to generate earnings compared with expenses and other relevant costs incurred during a specific period of time. In this section I will study several profitability metrics, such as return on assets, quality of earnings, cash flows and revenues. By analyzing these four metrics, we will be able to elucidate if the company is really making money. In addition, I always compare a company's revenue growth and operating cash flow growth. Over the past three years, the company's operating cash flow has increased by 4%. The company augmented its operating cash flow from $4.073 to $4.224. I advise looking for companies with strong cash generation profiles. ROA - Return on Assets = Net Income/Total Assets ROA is an indicator of how profitable a company is relative to its total assets, and shows how efficient management is at using its assets to generate earnings. In simple terms, ROA tells you what earnings were generated from invested capital (assets).
 Related MRK US Stock Futures Up Ahead Of Retail Sales Report Stock Market News for May 12, 2014 - Market News Merck Sells Japan Eye-Treatment Rights (Fox Business) With the Dow Jones Industrial Average finishing at a new closing high for a third straight day, you can bet on a lot of talk about stocks being frothy. But are they? Below are three different ways to spot stocks that may be frothy, and the top five identified by each marker. Some names recur, but the different indicators generate different top fives. The indicators are high trailing P/E ratios, high forward P/E ratios, and high relative strength index numbers. The 30 Dow Stocks Seem Fine The 30 stocks in the Dow itself are probably not overvalued. The trailing 12-month price/earnings ratio for the average was 16.37 after Tuesday's finish. That's down from 16.62 a year ago. The forward P/E ratio -- measuring price against earnings 12 months from now -- was 14.78, not outrageously high either. Related: Dow Closes At A New High As Late Month Rally Boosts Stocks A high P/E value can be a signal that a stock is at least ahead of the market. The reason the P/E ratios among the Dow stocks aren't as high as, say, Amazon, which sports a P/E ratio of 473, is that these stocks are known quantities. The 30 components all make money. None faces trouble that could threaten its existence. They have huge market capitalizations, averaging $162 billion. The group includes two of the four most valuable companies in the world: Exxon Mobil, with a market cap of $440 billion, and Microsoft, whose market cap is $334 billion. High Trailing P/E Ratios But some stocks are sporting prices that look rich, if judged by trailing P/E ratios, and could be ready for a pullback. Here are the top five: Merck (NYSE: MRK): Tuesday close: $55.75. P/E ratio 36.77. The stock had jumped 19 percent for the year through May 1, along with health-care stocks generally. Also, an important heart attack drug Zontivity recently won Food and Drug Administration approval. But the shares have pulled back in the last two weeks in part because of the sell-off in biotech stocks. Nike (NYSE: NKE): Tuesday close: $74.59. P/E ratio: 25.47. The company is seeing strong sales and profit gains from all of its regions. It expects to see sales jump with this year' World Cup soccer tournament. It's taking so much market share from competitors that Adidas's CEO even had to defend his company against charges that Adidas couldn't compete against Nike's soccer shoes. But the stock is down 5 percent this year in part because it jumped 52 percent in 2013. Visa (NYSE: V): Tuesday close: $212.06. P/E ratio: 25.09. The credit-card processor is seeing growth around the world. It also expects, like Nike, to be a winner from the World Cup. Boeing (NYSE: BA): Tuesday close: $133.45. P/E ratio: 23. The aerospace giant's commercial airline business is soaring, thanks to strong demand for more fuel efficient planes. It won a big order for 50 new-generation 737 planes from China's Juneyao Airlines. General Electric (NYSE: GE): Tuesday close: $26.92. P/E ratio: 22.14. GE's industrial business is growing rapidly, and the company is cutting costs and streamlining operations. High Forward P/E Ratios Using the P/E ratio measured against past earnings doesn't offer a view about how investors feel about a company's future. Using a 12-month forward P/E produces this list of five potentially overbought stocks. Nike: Forward P/E ratio: 22.15. The signal: A bit pricey. Visa: Forward P/E ratio: 20.36. The signal: A bit pricey. Coca-Cola (NYSE: KO): Tuesday close: $41.11. Forward P/E ratio: 20.36. The shares are down slightly in 2014 and could come down further unless the company can find ways to boost revenue and earnings. Procter & Gamble (NYSE: PG): Tuesday close: $81.61. Forward P/E ratio: 18.04. The shares are flat in 2014. Earnings have been weak, but the company has cheered investors with share buybacks. Walt Disney (NYSE: DIS). Tuesday close: $82.08. Forward P/E ratio: 17.84. The stock is up 7.4 percent this year, not bad considering the Dow is up just 0.8 percent on the year. Analysts have been upgrading the stock recently. Relative Strength Index There's one more way to look at if a stock is overvalued: relative strength index, which measures a stock's momentum. A stock is considered overbought and probably ready to pull back if its 14-day RSI is greater than 70. Here are the five Dow stocks with the highest RSI levels: Travelers Companies (NYSE: TRV): Tuesday close: $92.91. RSI: 78. The stock is up 2.6 percent in May and 9.3 percent for the quarter. At some point, investors will take profits in the stock. And probably soon. Caterpillar (NYSE: CAT): Tuesday close: $107.15. RSI: 71. Caterpillar is up 18 percent for the year and up 24.3 percent since early February. McDonald's (NYSE: MCD). Tuesday close: $103.53. RSI: 70. It probably is overbought. The stock is up 11 percent from a low in early February and is up 6.7 percent for the year. 3M (NYSE: MMM). Tuesday close: $92.91. RSI: 66. The shares may be flat for the year. But they're up 15 percent with little break from a low in early February. That's the risk. Coca-Cola: RSI: 65. The RSI is high because Coca-Cola shares have risen 11 percent since February 19, compared with the Dow's overall gain of 4.2 percent. Posted-In: Amazon Boeing Caterpillar Coca-cola disney Dow Jones Industrial Average Exxon Mobile GE McDonald's merck Microsoft Nike p/e ratio relative strength index visaEducation Markets Trading Ideas General Best of Benzinga © 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved. Most Popular 5 Companies Apple Could Buy Instead Of Beats JPMorgan Comments on J.C. 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 Popular Posts: Hottest Energy Stocks Now – HK QEP CLMT SDRL13 “Triple A” Stocks to Buy7 Biotechnology Stocks to Buy Now Recent Posts: Hottest Financial Stocks Now – ASPS MBI SF LPLA Biggest Movers in Healthcare Stocks Now – ALXN PODD ISIS REGN Hottest Technology Stocks Now – SATS WDAY P CGNX View All Posts This week, these five stocks have the worst ratings in Sales Growth, one of the eight Fundamental Categories on Portfolio Grader. Hatteras Financial () is a mortgage real estate investment trust. HTS gets F’s in Earnings Growth, Earnings Momentum, Equity, Cash Flow and Operating Margin Growth as well. . AG Mortgage Investment Trust, Inc. () focuses on investing, acquiring and managing a portfolio of residential mortgage assets, and other real estate-related securities and financial assets. MITT gets F’s in Earnings Growth, Earnings Momentum, Earnings Surprises, Equity, Cash Flow and Operating Margin Growth as well. . Lipocine, Inc. () is engaged in the development of pharmaceutical products in the areas of men'’s and women’'s health. . MannKind Corporation () is a biopharmaceutical company focused on the development and commercialization of therapeutic products for diseases such as diabetes, cancer, inflammatory and autoimmune diseases. MNKD gets F’s in Analyst Earnings Revisions and Cash Flow as well. . Uranium Energy () is an exploration-stage company that explores and develops mineral properties in the United States and Paraguay. UEC gets F’s in Analyst Earnings Revisions, Equity and Cash Flow as well. . Louis Navellier’s proprietary Portfolio Grader stock ranking system assesses roughly 5,000 companies every week based on a number of fundamental and quantitative measures. Stocks are given a letter grade based on their results — with A being “strong buy,” and F being “strong sell.” Explore the tool here.
 The Securities and Exchange Commission on Tuesday charged the Chicago Board Options Exchange for various systemic breakdowns in its regulatory and compliance functions as a self-regulatory organization, including a “failure to enforce or even fully comprehend” rules to prevent abusive short selling.
Without admitting or denying the SEC’s findings, CBOE agreed to pay $6 million, accept a censure and cease-and-desist order, and implement significant undertakings. The SEC says the financial penalty is the first assessed against an exchange for violations related to its regulatory oversight. The SEC notes that self-regulatory organizations (SROs) must enforce the federal securities laws as well as their own rules to regulate trading on their exchanges by their member firms. In doing so, they must sufficiently manage an inherent conflict that exists between self-regulatory obligations and the business interests of an SRO and its members. But an SEC investigation found that CBOE failed to adequately police and control this conflict for Charles Schwab's optionsXpress, which later became the subject of an SEC enforcement action. CBOE, the SEC says, “put the interests of the firm ahead of its regulatory obligations by failing to properly investigate the firm’s compliance with Regulation SHO and then interfering with the SEC investigation of the firm.” Andrew Ceresney, co-director of the SEC’s Division of Enforcement, said in a statement announcing the fine that “the proper regulation of the markets relies on SROs to aggressively police their member firms and enforce their rules as well as the securities laws. When SROs fail to regulate responsibly the conduct of their member firms as CBOE did here, we will not hesitate to bring an enforcement action.” Daniel Hawke, chief of the SEC Enforcement Division’s Market Abuse Unit, added in the same statement that “CBOE’s failures in this case were disappointing. The public depends on SROs to provide a watchful eye on their exchanges and market activities occurring through them. They must have strong compliance cultures and adequate and dedicated compliance resources to ensure that they do not stray from their bedrock obligation to provide rigorous self-regulation.” According to the SEC’s order instituting settled administrative proceedings, CBOE demonstrated an overall inability to enforce Reg. SHO with an “ineffective surveillance program that failed to detect wrongdoing despite numerous red flags that its members were engaged in abusive short selling. CBOE also fell short in its regulatory and compliance responsibilities in several other areas during a four-year period.” According to the SEC’s order, CBOE moved its surveillance and monitoring of Reg SHO compliance from one department to another in 2008, and the transfer of responsibilities adversely affected its Reg SHO enforcement program. After that transfer, CBOE did not take action against any firm for violations of Reg SHO as a result of its surveillance or complaints from third parties, the SEC states. Reg SHO requires the delivery of equity securities to a registered clearing agency when delivery is due, generally three days after the trade date (T+3), the SEC explained. "If no delivery is made by that time, the firm must purchase or borrow the securities to close out that failure-to-deliver position by no later than the beginning of regular trading hours on the next day (T+4). CBOE failed to adequately enforce Reg SHO because its staff lacked a fundamental understanding of the rule. CBOE investigators responsible for Reg SHO surveillance never received any formal training. CBOE never ensured that its investigators even read the rules. Therefore, they did not have a basic understanding of a failure to deliver." --- Check out Schwab to Close Broker-Dealer BrokersXpress on AdvisorOne.
 OJO Images/Getty Images Three times a week, I get up early and work out with a personal trainer at my local gym. Many people quickly write off the idea of paying someone to yell at you and push you to lift more weights or run faster. But what if your job depended on staying physically fit? Or, what if you could save money on your life insurance or health insurance premiums by going to the gym and working out consistently? I take a lot of flak from my friends and coworkers for "wasting" that money. (A certified personal trainer can cost $35 or more for a half-hour session.) But to me, it's an investment that I'm making in myself and my health. We hardly think twice about spending money to continue our education to get ahead on our careers. I think we should look at spending money at the gym the same way. Do the Benefits Outweigh the Costs? Many researchers tie costs of not having a healthy life with our mood, health issues, happiness and sleep patterns. A study from researchers at the University of Texas Southwestern Medical Center published in the American Journal of Preventive Medicine found that exercise significantly reduced symptoms of depression in patients aged 20 to 45. Studies from the Northwestern University Feinberg School of Medicine show that aerobic exercise programs than run at least 16 weeks can help with insomnia. One reason that I love working out with a personal trainer is that he provides me with accountability. Paying him gives me an added incentive to go to the gym, because he charges me if I don't show up without giving at least 24 hours notice. That monetary penalty works for my personality. A personal trainer can help you form plans to diet, lift weights and conduct cardiovascular exercises. I find it extremely helpful to have a personal trainer who can teach me more challenging exercises and ensure I am performing them correctly. People in many professions -- such as police officers, firefighters, members of the military, prison guards -- are required by the nature of the work to be in good physical shape. In some of these jobs, a portion of your performance evaluation and eligibility for promotions is tied to your fitness level. For these workers, it can be a savvy strategic career move to hire a personal trainer. There is a tradeoff to these benefits: a cost associated with working out, in both time and money. Only you can decide of the benefits outweigh those costs. Working out could lower the cost of your life insurance and health insurance. Many U.S. companies, including Fortune 500 businesses, provide discounts on employee health insurance premiums to those who work out through company-approved programs. Factor a Physical Trainer Into Your Monthly Budget Do you want to work with a personal trainer? Do you think your job or health could depend on it, but you're not sure how you can afford one? Consider what is important to you. If working with a personal trainer and taking back control over you health is important to you, consider adding it to your family's monthly budget. While everyone's health and career are different, hiring a personal trainer can pay dividends in your life. Often it is hard to directly see the return the return on investment in monetary terms. But the second- and third-order effects of becoming healthier can help to make it worthwhile. Hank Coleman is the publisher of the personal finance blog Money Q&A, where he answers readers' tough money questions. Follow him on Twitter @MoneyQandA.
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