Gold: A sip on every slip

Argument against investing in Gold is not invalid. It produces nothing, pays no dividends, it's inherently subject to theft and incurs negative carrying costs, but that is the price you pay for tranquility.

In a world of undercapitalized banks, over leveraged sovereigns and political ineptitude wherever you look, it is prudent to allocate a portion of one's  capital to an asset that is not someone else's liability An ounce of Gold is an ounce of Gold has to go up in relation to paper money . To what price depends on the pace of inflation and we all know that inflation will continue.

While the short term trend for international Gold prices stays bearish a weaker rupee will prevent domestic prices from crashing.

The main way to tap into investing in Gold stays the traditional method of buying physical bullion / coins from your jeweler. Not as convenient as investing in an ETF or a Gold Fund but definitely safer. For the more sophisticated investor there is always the futures and option market.

We've always maintained that monthly SIPS are the best way to protect any investment, irrespective trends, charts, emotions and sentiment. That view holds true for Gold as well. Sip every slip should be your investing mantra.

Perhaps the best tribute to a SIP lies in the fact that even your grandmother could make money from her investment in Gold.

And she never understood markets.

Authored by Rajiv Goel, C.E.O. of BCS

GoM Rig Count Highest Since 2009 - Analyst Blog

In its weekly release, Houston-based oilfield services company Baker Hughes Inc. (BHI) reported a rise in the U.S. rig count (number of rigs searching for oil and gas in the country). This upside can be attributed to an increase in the tally of both oil and natural gas-directed rigs. In particular, rigs working in the U.S. Gulf of Mexico (GoM) jumped to its highest level in 4 years.

The Baker Hughes' data, issued since 1944, acts as an important yardstick for energy service providers in gauging the overall business environment of the oil and gas industry.

Analysis of the Data

Weekly Summary: Rigs engaged in exploration and production in the U.S. totaled 1,757 for the week ended Jul 3, 2013 – a period curtailed by the Independence Day. This was up by 9 from the previous week's rig count and indicates the first increase in 3 weeks.

The current nationwide rig count is more than double the lowest level reached in recent years (876 in the week ended Jun 12, 2009), though it is way below the prior-year level of 1,965. It rose to a 22-year high in 2008, peaking at 2,031 in the weeks ending Aug 29 and Sep 12.

Rigs engaged in land operations ascended by 6 to 1,676, offshore drilling was up by 3 to 59 rigs, while inland waters activity remained steady at 22 units.

Natural Gas Rig Count: The natural gas rig count – which recently slumped to its lowest point since Jun 1995 – increased for the second successive week to 355 (a gain of 2 rigs from the previous week). Despite the weekly improvement, the number of gas-directed rigs is down by 56% from its 2012 peak of 811.

In fact, the current natural gas rig count remains 78% below its all-time high of 1,606 reached in late summer 2008. In the year-ago period, there were 542 active natural gas rigs.

Oil Rig Count: The oil rig count – that rocketed to a 25-year high of 1,432 in Aug last year – jumped by 5 to 1,395. It has recovered strongly from a low of 179 in Jun 2009, rising 7.8 times. However,! the current tally is below the previous year's rig count of 1,419.

Miscellaneous Rig Count: The miscellaneous rig count (primarily drilling for geothermal energy) at 7 was up by 2 from the previous week.

Rig Count by Type: The number of vertical drilling rigs fell by 7 to 434, while the horizontal/directional rig count (encompassing new drilling technology that has the ability to drill and extract gas from dense rock formations, also known as shale formations) was up by 16 to 1,323. In particular, horizontal rig units – that reached an all-time high of 1,193 in May 2012 – edged up by 1 from the last week's level to 1,068.

Gulf of Mexico (GoM): The GoM rig count was up by 3 to 57, the highest level since Feb 2009. Oil drilling increased to 43 rigs from 40 a week ago, while gas rigs remained steady at 14.

A Key Barometer of Drilling Activity: An increase or decrease in the Baker Hughes rotary rig count heavily weighs on the demand for energy services – drilling, completion, production etc. – provided by companies that include large-cap names like Halliburton Co. (HAL) and Schlumberger Ltd. (SLB). However, our preferred pick in this group is Newpark Resources Inc. (NR). The Woodlands, TX-based firm – sporting a Zacks Rank #2 (Buy) – has a solid secular growth story with potential to rise from current level.

Prestige Brands Acquires Care Pharma - Analyst Blog

Prestige Brands Holdings, Inc. (PBH) recently announced that it has acquired Australia-based Care Pharmaceuticals Pty Ltd. Effective from Jul 1, 2013, this privately held marketer and distributor of over-the-counter (OTC) healthcare products became a part of Prestige Brands. Financial details of the deal were not provided. Prestige Brands saw its share price moving up by 10.9% on the news.

This acquisition will strengthen Prestige Brands' portfolio with Care Pharma's principal brand Fess and other brands including Painstop, Rectogesic and Fab. Prestige Brands funded this acquisition through an existing credit facility and cash on hand.

We note that Prestige Brands is heavily into acquisitions. The company acquired 17 brands in 2012 and 6 brands in 2011 in the OTC Healthcare category, supplementing its existing OTC Healthcare brands.

On Jan 31, 2012, the company acquired 15 OTC healthcare brands, including related contracts, trademarks and inventory from GlaxoSmithKline plc (GSK) and its affiliates. The other two brands, namely, Debrox and Gly-Oxide, were acquired on Mar 30, 2012.

On Nov 1, 2010, the company acquired Blacksmith Brands Holdings, Inc., which owned five brands, namely, Efferdent, Effergrip, PediaCare, Luden's and NasalCrom. On Jan 6, 2011, the company acquired some assets comprising the brand Dramamine in the US.

Prestige Brands carries a Zacks Rank #2 (Buy). The latest acquisition is a great strategic fit for the company. The two companies have similar business models and a common culture focusing on building brands, innovation and new products. It will also help Prestige Brands in expanding its business in the Asia Pacific region.

Right now, companies like Santarus, Inc. (SNTS) and Jazz Pharmaceuticals (JAZZ) look well positioned with a Zacks Rank #1 (Strong Buy).

The Window To Buy Low On These Commodities Is Closing Fast

When the Federal Reserve launched its plans to stimulate the economy through quantitative easing in 2009, virtually all asset classes were expected to benefit as the massive increase in liquidity would trickle through the markets. Indeed, commodity prices initially surged in tandem with stock and bond prices.

Yet commodities simply couldn't keep up, and eventually faltered. Over the past two years, the S&P 500 index has risen 40%, while the iPath DJ-UBS Commodity Index Total Return ETN (NYSE: DJP) has fallen 20%. (The fact that crude oil accounts for roughly 20% of this exchange-traded fund (ETF) means that results would have been even worse if crude oil were excluded.)

Yet a case can be made that the storm clouds over commodities are starting to part. And as always, it comes down to supply and demand.

 

On the demand side of the equation, the discussion has focused on China, which had been showing signs of a rapid economic slowdown in the first half of 2013. Yet in recent weeks, various data suggest China's slowdown may not be as bad as feared. In a Bloomberg article this week, a fund manager at Shanghai-based Dragon Life noted that "Signs are emerging that China's economy will rebound." In fact, several economists have recently boosted their growth forecasts for the Chinese economy after a series of earlier downgrades. 

But perhaps it's time to think about commodities in a global light. The Chinese market is surely important, but both the U.S. and Europe each account for one-fourth of global economic activity, and signs are pointing to growth (albeit off of a low base) in those areas well, which should lift demand for commodities.

Investors also need to track the supply side of the equation. A wide range of mining companies, from BHP Billiton (NYSE: BHP) to Vale (NYSE: VALE) to Rio Tinto (NYSE: RIO) have all removed billions of dollars of new mining projects from their development slate. There is always a lag time between changes in capital spending and the impact on industry output, but the stage is set for a more constrained supply picture in 2014 and especially 2015. 

Meanwhile, various commodity prices are showing signs of a rebound, or are at least forming a bottom. Take copper, for example, which had been in freefall, until recent economic clues out of China boosted sentiment.

If copper has indeed found a floor, then Freeport-McMoRan (NYSE: FCX) is well positioned for upside, as I discussed recently.

In a similar fashion, agricultural commodity prices are showing recent signs of stabilization after sharp drops. Corn prices, for example, appear to have fallen to a level that has led poultry and cattle farmers to step up their purchases.

And the spot price for soybeans appears to have also made a bottom.

Perhaps the best way to capitalize on the apparent bottom in agriculture prices is the PowerShares DB Agriculture ETF (NYSE: DBA), which made a 52-week low in early August before a recent modest rebound. 

Investors should also explore the opportunities emerging in coffee after prices plunged to multi-year lows in the face of a robust global harvest. These sharp swings in coffee always tend to set the stage for their own reversal as low prices lead some major coffee traders to withhold supply from the market. The iPath DJ-UBS Coffee Total Return Sub-Index ETN (NYSE: JO), has plunged from nearly $43 to $23 in the past year, and is well below the $80 level seen back in early 2011.

Selectivity Is Key
Not all commodities are poised for a rebound anytime soon. Finished commodities such as steel and aluminum are still dogged by too much industry capacity.

	According to the World Gold Council, roughly half of all gold bars and coins are being bought in China and India.

And trying to get a handle on the direction of gold prices is quite hard, simply because demand from places like India and China is proving to be fickle. According to the World Gold Council, roughly half of all gold bars and coins are being bought in those two countries. Yet the Indian government has raised taxes on gold imports on three occasions since the start of 2012 to blunt a staggering trade deficit, which could eventually crimp Indian demand.

What about natural gas? The spot price has plunged from $4.30 per thousand cubic feet (Mcf) in May to a recent $3.55 per Mcf. Benign weather patterns, which crimped summertime electricity demand, are the key culprit. And gas isn't especially timely as we enter the shoulder season between summer and winter. Yet it pays to continue to track this commodity, which is far closer to a supply/demand equilibrium than it was a few years ago when gas prices plunged below $2 per MCF.

Risks to Consider: The biggest risk for commodity prices is on the demand side. If the Chinese economy falters badly, then commodities will likely see new lows. For that matter, the U.S. and Europe need to show at least modest signs of growth to help boost the demand side of the equation.

Action to Take --> Few are talking about commodities right now, after the sector has inflicted such deep pain. Yet it is such times that opportunities emerge. The forces of supply and demand may prove to be slow-changing, which means that patience will be required, but the stage is increasingly set for an upcycle as we head into the middle of the decade.

P.S. -- Several strategic metals are poised to be caught in a severe supply crunch in 2014. Used in everything from computers to satellites, these 17 exotic metals are essential to our modern way of life. But China has a stranglehold on these metals -- and is limiting supply to jack up the price. Click here to find out how you can position yourself now on the profit side of this development.

What's in Store for Yahoo!'s 2Q Earnings? - Analyst Blog

Yahoo! Inc. (YHOO) is set to report second quarter 2013 results on Jul 16. Last quarter, it posted a 36% positive surprise. Let's see how things are shaping up for this announcement.

Growth Factors this Past Quarter

Yahoo's search business continues to show signs of improvement, even in the face of tough competition from Facebook, Google and Microsoft. Improvements on the display side are ongoing, although the impact is not apparent just yet.

However, under its new CEO Marissa Meyer, Yahoo has been active on the acquisition front. It acquired multiple start-ups mainly in the mobile space. The acquisitions are part of a strategy to broaden and strengthen Yahoo's expertise in the mobile segment as adoption of mobile devices such as smartphones and tablets continue to accelerate.

With these acquisitions, Yahoo is picking up a whole lot of engineering talent as well as key technologies and products at a cheaper rate. Yahoo also expects that these acquisitions will enable it to enter the emerging social marketing segment, where its rivals have already established themselves.

Earnings Whispers?

Our proven model does not conclusively show that Yahoo is likely to beat earnings this quarter. This is because a stock needs to have both a positive earnings expected surprise prediction or ESP (Read: Zacks Earnings ESP: A Better Method) and a Zacks Rank #1, #2 or #3 for this to happen. That is not the case here as you will see below.

Negative Zacks ESP: The ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is -3.9%.

Zacks Rank #2 (Buy): Yahoo's Zacks Rank #2 when combined with a negative ESP makes surprise prediction difficult. We caution against stocks with Zacks Ranks #4 and #5 (Sell rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions momentum.

Other ! Stocks to Consider

Here are some other companies you may want to consider as our model shows that they have the right combination of elements to post an earnings beat this quarter:

SanDisk Corp. (SNDK), with an ESP of +4.55% and a Zacks Rank #1 (Strong Buy).

Syntel Inc. (SYNT), with an ESP of +3.81% and a Zacks Rank #1 (Strong Buy).

Scientific Games Corporation (SGMS), with an ESP of +100.00% and a Zacks Rank #2 (Buy).

Yahoo! Still Needs To Generate Better Intrinsic Value

A year into her tenure as Yahoo!'s (Nasdaq:YHOO) CEO, Marissa Mayer may have ruffled a few feathers, but Yahoo!'s feathers were badly in need of ruffling as it was well on the AOL (NYSE:AOL)/MySpace path to irrelevance and doom. While there's still quite a lot of work to be done in turning the business around, the better-than-70% rise in the shares over the past year has to be encouraging to shareholders. The biggest question now is whether or not Yahoo! can take the cash coming from the Alibaba IPO and reinvest it into sustainable cash-generating growth opportunities.

Second Quarter Results Disappoint
Yahoo!'s second quarter results are a good reminder that while the tone around the stock may have changed, the business is still struggling. It is still profitable and free cash flow positive, though, which ought to buy more time for Mayer's strategies to bear fruit.

Revenue (ex-TAC) declined 1% this quarter. Search came in more or less as expected (with revenue up 5%) on a 21% improved in paid clicks, but Display disappointed. Display revenue declined 11% as overall display ads declined 2% and a shift away from premium ads send pricing down about 12%. The company's relatively large "Other" category saw revenue rise 10%.

Although revenue was disappointing, profits weren't so bad. Gross margin more or less held steady, while operating income more than doubled from the year-ago period (while declining 25% on a sequential basis). All told, Yahoo!'s EBITDA came in about 4% to 5% better than many analysts expected.

All Eyes On Asia
There is no real sign that Yahoo! is making major progress in gaining ground on Google (Nasdaq: GOOG) or Facebook (Nasdaq:FB) in ads, and while an extension of the minimum payments agreement with Microsoft (Nasdaq: MSFT) in search is a plus, it doesn't change that Yahoo!'s core operations are still in need of serious improvement.

With that, a lot of the attention around Yahoo! focuses on the company's investments in Alibaba and Yahoo! Japan. Even with the weakness in China, Alibaba's results have been quite strong recently and speculation is running that Alibaba's post-IPO valuation will run in the $90 billion to $100 billion range. As a reminder, Yahoo!'s agreement with Alibaba requires it to sell half of its stake (roughly 12%) through the IPO, while the other half can be sold at management's discretion.

There's not much that Yahoo! can do to improve the value of this stake at this point, other than to explore various tax-efficient methods of selling that second half of the stake after the IPO. Speaking of which, the timing of an Alibaba IPO is still a big unknown, as the weakness in China has many analysts speculating that the deal will be delayed into 2014 pending better market conditions.

SEE: Strategies For Quarterly Earnings Season

It Will Take Time For Seeds To Sprout
Outside of the large and much-discussed Tumblr acquisition, Yahoo! has been busy on the M&A front, with well over a dozen deals in the past few quarters. Many of these deals look like "hire by acquisition" situations, though, and it could take time for their impact to show in Yahoo!'s traffic, revenue, and profits.

Even so, I think Mayer has a cogent plan for getting this business turned around. Refocusing around mobile makes sense (and many of the deals have been targeted at mobile apps) and there are signs that traffic is on the way back. Even so, the trick will be to keep those visitors coming back and encouraging others to join them.

The Bottom Line
It's interesting to compare Yahoo! and Facebook side-to-side, and notice the relative lack of overlap. I'm not saying or suggesting that Facebook will or should buy Yahoo!, but it's nevertheless interesting to note how their strengths and weaknesses complement each other.

As is, I think Yahoo! is pretty close to fair value today. I value the Alibaba and Yahoo! Japan stakes at around $15.50 per share combined, with almost another $4.50 from cash on the balance sheet. I see the core Yahoo! business as being worth about $10 today, but that is on the basis of extremely low assumptions for future revenue and cash flow growth. Should Mayer's traffic- and value-generation strategies pay off, there could certainly be meaningful upside to the core value of Yahoo!.

Top 10 Low Price Stocks To Buy For 2014

A classical example is that of Satyam Computer Services Ltd. After its debacle, the share prices of Satyam tumbled from over Rs 250 to Rs 10 within a day. Those who had bought the shares at lower prices might have made 10 times the returns on the stock.

This might not be the perfect example but there are so many well-managed large companies having a good product line and a dominant position in their respective industries and are trading at historically low prices. At times situations like these arise due to lack of interest in the company on part of the investors. More importantly, the share prices of many of these companies are beaten to such an extent that it appears as if they will cease their business activities from the very next day.

Is this because they fear the economy is not doing well, the interest rates are high, the product prices are low, the consumer demand is falling or concerns about how these companies will pay their debts?

Top 10 Low Price Stocks To Buy For 2014: Mutiny Gold Ltd(MYG.AX)

Mutiny Gold Limited, a diversified resource company, engages in the exploration and development of gold, copper, and nickel tenements in western Australia. Its lead project, the Deflector Gold/Copper deposit, which is within Gullewa tenements located in south Murchison region of western Australia. The company was founded in 2002 and is based in South Perth, Australia.

Top 10 Low Price Stocks To Buy For 2014: Carrols Restaurant Group Inc.(TAST)

Carrols Restaurant Group, Inc., through its subsidiary, Carrols Corporation, owns and operates quick-casual and quick-service restaurants. It operates restaurants under the Burger King, Pollo Tropical, and Taco Cabana names. As of January 1, 2012, the company owned and operated 547 restaurants, including 298 Burger King, 91 Pollo Tropical and 158 Taco Cabana restaurants in 17 states in the United States. It also franchised 36 restaurants in Puerto Rico, Ecuador, Honduras, Trinidad, the Bahamas, and Venezuela, as well as in college campuses in Florida. The company was formerly known as Carrols Holdings Corporation and changed its name to Carrols Restaurant Group, Inc. in November 2006. Carrols Restaurant Group, Inc. was founded in 1960 and is headquartered in Syracuse, New York.

Top 5 Cheap Stocks To Own For 2014: Continental Resources Inc. (CLR)

Continental Resources, Inc. engages in the exploration, development, and production of crude oil and natural gas primarily in the north, south, and east regions of the United States. The company primarily sells its oil and natural gas production to end users, as well as to midstream marketing companies or oil refining companies at the lease. As of December 31, 2011, its estimated proved reserves were 508.4 million barrels of crude oil equivalent, with estimated proved developed reserves of 205.2 million barrels of crude oil equivalent. The company had interests in 3,255 wells and served as the operator of 2,082 of these wells. Continental Resources, Inc. was founded in 1967 and is headquartered in Enid, Oklahoma.

Top 10 Low Price Stocks To Buy For 2014: Threegold Resources Inc (THG.V)

Threegold Resources Inc. engages in the acquisition and exploration of mineral properties located primarily in the Abitibi and Gasp茅sie regions of Canada. It primarily explores for gold, copper, zinc, precious metals, rare earth mineralizations, lead, and silver. The company was incorporated in 2002 and is headquartered in Val-d�Or, Canada.

Top 10 Low Price Stocks To Buy For 2014: Auburn National Bancorporation Inc.(AUBN)

Auburn National Bancorporation, Inc. operates as a holding company for AuburnBank that offers various banking products and services in east Alabama. The company?s deposit products include checking, savings, and transaction deposit accounts, as well as certificates of deposit, NOW accounts, money market accounts, and time deposits. Its loan portfolio comprises commercial, financial, agricultural, real estate construction, and consumer loans. In addition, the company provides automated teller services; Visa Checkcards, which are debit cards with the Visa logo that work where Visa is accepted, including automated teller machines (ATMs); online banking and bill payment services; and safe deposit boxes. As of December 31, 2009, it operated nine branches in Alabama, as well as three mortgage loan offices in Mountain Brook, Phenix City, and Valley, Alabama; and ATM machines in 13 locations. The company was founded in 1907 and is headquartered in Auburn, Alabama.

Top 10 Low Price Stocks To Buy For 2014: Hewlett-Packard Co (HWP)

Hewlett-Packard Company (HP), incorporated on February 11, 1947, is a provider of products, technologies, software, solutions and services to individual consumers, small- and medium-sized businesses (SMBs) and large enterprises, including customers in the Government, health and education sectors. Its operations are organized into seven segments: the Personal Systems Group (PSG), Services, the Imaging and Printing Group (IPG), Enterprise Servers, Storage and Networking (ESSN), HP Software, HP Financial Services (HPFS) and Corporate Investments. The Company�� offerings include personal computing and other access devices; multi-vendor customer services, including infrastructure technology and business process outsourcing, technology support and maintenance, application development and support services and consulting and integration services, and imaging and printing-related products and services. It also provides enterprise information technology infrastructure, including enterprise storage and server technology, networking products and solutions, information technology (IT) management software, information management solutions and security intelligence/risk management solutions. As of October 31, 2011, HP owned an approximately 99% equity interest in Autonomy Corporation plc. In December 2011, the Company acquired Hiflex Software GmbH.

In March 2012, HP had consolidated PSG and IPG into a Printing and Personal Systems Group. HP continues to report the results of IPG and PSG separately. Subsequent o the fiscal year ended October 31, 2011, the Company completed five others realignments, which included the transfer of Indigo and Scitex support and the LaserJet and enterprise solutions trade support business from the technology services (TS) business unit within Services to the Commercial Hardware business unit within IPG; the transfer of the TippingPoint business from the Networking business unit within ESSN to Software; the transfer of the business intelligence services business from Corpor! ate Investments to a Application and Business Services (ABS) business unit within Services; the consolidation of the Application Services, Business Process Outsourcing and Other Services business units within Services into the ABS business unit, and the transfer of the information management services business from Software to the ABS business unit within Services.

Personal Systems Group

PSG provides commercial personal computers (PCs), consumer PCs, workstations, calculators and other related accessories, software and services for the commercial and consumer markets. The Company groups commercial notebooks, commercial desktops and workstations into commercial clients and consumer notebooks and consumer desktops into consumer clients. Commercial PCs include the HP ProBook and the HP EliteBook lines of notebooks and the Compaq Pro, Compaq Elite, HP Pro and HP Elite lines of business desktops, as well as the TouchSmart and Omni PCs, HP Mini-Note PCs, retail POS systems, HP Thin Clients and HP Slate Tablet PCs. Consumer PCs include the HP and Compaq series of multi-media consumer notebooks, desktops and mini notebooks, including the TouchSmart line of touch-enabled all-in-one notebooks and desktops. PSG provides workstations that run on both Windows and Linux-based operating systems.

Services

Services provide consulting, outsourcing and technology services across infrastructure, applications and business process domains. Services delivers to its clients by leveraging investments in consulting and support professionals, infrastructure technology, applications, standardized methodologies, and global supply and delivery. Services are divided into four main business units: infrastructure technology outsourcing, technology services, applications services and business process outsourcing. Infrastructure Technology Outsourcing services encompass the data center and the workplace (desktop); network and communications; and security, compliance and business contin! uity. It ! also offers a set of managed services. Technology Services provides support and consulting services, as well as warranty support across HP's product lines. HP's technology services offerings are available in the form of service contracts, pre-packaged offerings (HP Care Pack services) or on an individual basis. The Company�� Applications Services encompass application development, testing, modernization, system integration, maintenance and management. Applications Services also provides technology consulting and systems integration solutions and services that use cloud computing, hybrid delivery, enterprise mobility, information management and real-time analytics. Business Process Outsourcing services includes both industry-specific and cross-industry solutions. Its cross-industry solutions include a range of enterprise-shared services, customer relationship management services, financial process management services and administrative services.

Imaging and Printing Group

IPG provides consumer and commercial printer hardware, supplies, media and scanning devices. IPG is also focused on imaging solutions in the commercial markets. These solutions range from managed print services to capturing high-value pages in areas, such as industrial applications, outdoor signage, and the graphic arts business. Inkjet and Web Solutions delivers HP's consumer and SMB inkjet solutions (hardware, supplies, media, web-connected hardware and services) and develops HP's retail publishing and Web businesses. It includes single function and all-in-one inkjet printers targeted toward consumers and SMBs, as well as retail publishing solutions, Snapfish and ePrintCenter. LaserJet and Enterprise Solutions delivers products, services and solutions to the medium-sized business and enterprise segments, including LaserJet printers and supplies, multi-function devices, scanners, Web-connected hardware and services and enterprise software solutions, such as Exstream Software and Web Jetadmin. Managed Enterp! rise Solu! tions provides managed print services products and solutions delivered to enterprise customers partnering with third-party software providers to offer workflow solutions in the enterprise environment. Graphics Solutions provides large format printing (Designjet and Scitex), large format supplies, WebPress supplies, Indigo printing, specialty printing systems and inkjet high-speed production solutions. Graphic Solutions targets print service providers, architects, engineers, designers and industrial solution providers. Its printer supplies offerings include LaserJet toner and inkjet printer cartridges, graphic solutions ink products and other printing-related media.

Enterprise Servers, Storage and Networking

ESSN provides server, storage and networking products in a number of categories. The Company�� Converged Infrastructure portfolio of servers, storage and networking combined with HP Software's Cloud Service Automation software suite creates HP's CloudSystem. This integrated solution enables enterprise and service provider clients to deliver infrastructure, platform and software as a service in a private, public or hybrid cloud environment. Industry Standard Servers offers primarily entry-level and mid-range ProLiant servers, which run primarily Windows, Linux and Novell operating systems and Intel Corporation (Intel) and Advanced Micro Devices (AMD) processors. The business spans a range of product lines that include pedestal-tower servers, density-optimized rack servers and HP's BladeSystem family of server blades.

The Company�� Business Critical Systems delivers Converged Infrastructure with a portfolio of HP Integrity servers based on the Intel Itanium processor that run the HP-UX and OpenVMS operating systems, as well as HP Integrity NonStop solutions. Business Critical Systems also offers HP's scale-up x86 ProLiant servers for scalability of systems. In addition, HP continues to support the HP9000 servers and HP AlphaServers by offering customers. Th! e Company! �� storage offerings include storage platforms for high-end, mid-range and small business environments. Its flagship product is the HP 3PAR Utility Storage Platform, which is designed for virtualization, cloud and IT-as-a-service. The Storage business has a range of products, including storage area networks, network attached storage, storage management software and virtualization technologies, StoreOnce data deduplication solutions, tape drives and tape libraries. Its switch, router, wireless local area network (LAN) and TippingPoint network security products deliver solutions for the data center, campus and branch networks. Its networking solutions are based on HP's FlexNetwork architecture.

HP Software

HP Software provides enterprise IT management software, information management solutions and security intelligence/risk management solutions. Solutions are delivered in the form of software licenses or as software-as-a-service. HP Software solutions enables IT organizations to manage infrastructure, operations, application life cycles, application quality and security, IT services, business processes, and structured and unstructured data.

HP Financial Services

HPFS supports HP's global product and service solutions, providing a range of financial life cycle management services. HPFS enables its worldwide customers to acquire IT solutions, including hardware, software and services. The Company offers leasing, financing, utility programs and asset recovery services, as well as financial asset management services for global and enterprise customers. HPFS also provides an array of specialized financial services to SMBs and educational and Governmental entities.

Corporate Investments

Corporate Investments includes business intelligence solutions, HP Labs, webOS software and certain business incubation projects. Business intelligence solutions enable businesses connect and share data across the enterprise and apply analytics.! This seg! ment also derives revenue from licensing specific HP technology to third parties.

The Company competes with Dell, Inc., Acer Inc., ASUSTeK Computer Inc., Apple Inc., Lenovo Group Limited, Toshiba Corporation, IBM Global Services, Computer Sciences Corporation, Accenture Ltd., Fujitsu Limited, Wipro Limited, Infosys Technologies Limited, Tata Consultancy Services Ltd, SAP, AG, Oracle Corporation, Microsoft Corporation, Canon U.S.A., Inc., Lexmark International, Inc., Xerox Corporation, Seiko Epson Corporation, Samsung Electronics Co., Ltd., Brother Industries, Ltd., International Business Machines Corporation, EMC Corporation, NetApp, Inc., CA, Inc., BMC Software, Inc., Cisco, McAfee and IBM Global Financing.

Top 10 Low Price Stocks To Buy For 2014: Methanex Corporation (MEOH)

Methanex Corporation, together with its subsidiaries, engages in the production, marketing, and sale of methanol. The company also purchases and re-sells methanol produced by others. Its methanol is a clear liquid commodity chemical that is used to produce traditional chemical derivatives, including formaldehyde, acetic acid, and various other chemicals. The company�s methanol is also used in energy-related applications; for blending into gasoline, as a feedstock in the production of dimethyl ether, which can be blended with liquefied petroleum gas for use in household cooking and heating, and in the production of biodiesel; and used to produce methyl tertiary-butyl ether, a gasoline component, as well as used into olefins applications. The company supplies its methanol to petrochemical producers and distributors in North America, the Asia Pacific, Europe, and Latin America. Methanex Corporation was founded in 1968 and is headquartered in Vancouver, Canada.

Top 10 Low Price Stocks To Buy For 2014: SAIC Inc(SAI)

SAIC, Inc. scientific, engineering, systems integration, and technical services and solutions to various branches of the U.S. military, agencies of the U.S. Department of Defense, the intelligence community, the U.S. Department of Homeland Security and the other U.S. government civil agencies, state and local government agencies, foreign governments, and customers in select commercial markets. Its Government segment provides a range of technical services and solutions in the areas of systems engineering and integration, software development, cyber security, data processing and analysis, secure information sharing and collaboration, IT outsourcing, communication systems and infrastructure, command and control, logistics, research and development, environmental consulting, energy and utilities, design and construction, securing critical infrastructure, disaster preparedness and recovery, homeland security product, geospatial solutions, and modeling and simulation. The compan y?s Commercial segment provides consulting, systems integration, and managed IT services, as well as customizable IT software solutions to oil and gas customers; and enterprise information technology optimization, business intelligence, enterprise resource planning maintenance, and staff augmentation services to select commercial customers, and state and local government customers. In addition, it offers business, engineering, energy, and infrastructure consulting services; language translation, interpretation, and training services; architectural design services; and information systems and communications, and rapid prototyping of technical solutions and products focused on support to intelligence and special warfare operations. SAIC, Inc. was formerly known as Science Applications, Inc. The company was founded in 1969 and is headquartered in McLean, Virginia.

Top 10 Low Price Stocks To Buy For 2014: Onvia Inc.(ONVI)

Onvia, Inc. provides business information and research solutions in the United States and Canada. It offers Onvia Online Database, which provides search functionality on the company?s database of local, state, and federal government agency purchasing information; project information center that offers individual public sector procurement projects information at various stages of the purchasing cycle; and agency information center, which provides users with agencies? procurement histories, current projects, and spending forecasts in an application. The company provides Spending Forecast Center that offers an insight into budgets and capital improvement plans of agencies; and The Onvia Guide, which tracks the procurement activity of the agencies, industries, and markets for customers. In addition, the company offers management information reports, including Term Contracts report that provides sales information on term or continuing service contracts, which are pending for renewal at public agencies; Contact Lists that offers a list of decision makers, agency procurement officers, and zoning officials for customers to develop relationships and identify business partners; and Winning Proposals Library, which compares and contrasts winning proposals. It serves various businesses through small/medium business, enterprise, and content licenses. Onvia, Inc. was founded in 1996 and is headquartered in Seattle, Washington.

Top 10 Low Price Stocks To Buy For 2014: Timberline Resources Corp (TLR)

Timberline Resources Corporation (Timberline), incorporated on August 28, 1968, is an exploration-stage company. The Company is engaged in evaluating, acquiring and exploring mineral prospects with potential for economic deposits of precious and base metals. In June 2010, the Company acquired Staccato Gold Resources Ltd., which is engaged in the business of acquiring, exploring and developing mineral properties with a focus on gold exploration in the gold producing trends in Nevada. In September 2010, the Company closed its drilling services operation in Mexico, which was operated by its wholly owned Mexican subsidiary, World Wide Exploration, S.A. de C.V. (WWE). In October 2011, the Company sold its wholly owned contract drilling subsidiary, Timberline Drilling, Inc. In November 2011, the Company announced the sale of its wholly owned contract drilling subsidiary, Timberline Drilling, Inc. (TDI).

As of December 2010, Timberline had acquired mineral prospects for exploration in Nevada, Montana and Idaho mainly for commodities of gold, silver, zinc and copper. The prospects are held by both patented and unpatented mining claims owned directly by the Company or through agreements conveying exploration and development rights to the Company.

Nevada Gold Properties

Nevada Gold Properties consist of South Eureka Property, which comprises 845 unpatented and 15 patented claims and several projects, including Lookout Mountain, Hiero/Syracuse, Windfall Patents, South Ratto, Hoosac/North Amselco and New York Canyon. The South Eureka property is located five miles south and southwest of the town of Eureka, within the southern part of the Eureka mining district of Eureka County, Nevada, within T19N, R53E and unsurveyed T17N and T18N, R53E at the southern end of the Cortez Trend (Battle Mountain/Eureka Trend).

The Hoosac/North Amselco project comprises the Hoosac, North Amselco, and South Rustler/W-claim groups. As of September 30, 2010, the Hoosac and North Amse! lco claims were owned by the Company and were under lease to DFH Co., a subsidiary of Royal Gold, Inc. As of September 30, 2010, the Lookout Mountain project had 373 unpatented claims; South Ratto had 108 unpatented claims, and New York Canyon had 45 unpatented claims. As of September 30, 2010, the Company held 72% interest in the ICBM Project (Cortez/Battle Mountain Trend) and is the operator of the ICBM joint venture. The ICBM Joint Venture Project (Timberline/Barrick) is located in the Battle Mountain Mining District, Lander County, Nevada.

Montana Gold Properties

Montana Gold Properties consist of Butte Highlands Gold Project, which is located approximately 15 miles south of Butte, Montana in Silverbow County. The property covers 1,142 acres consisting of a combination of patented and unpatented mining claims. As of September 30, 2010, the Butte Highlands Gold Project claims included BHC 1 thru BHC 61, MC 1 thru MC 48, J.B. Thompson, Main Ripple, Murphy, Only Chance, Purchance, Red Mountain, Main Chance, Island, Atlantic, Barnard and Pony Placer.

Idaho Copper-Silver Property

Idaho Copper-Silver Property consists of the Snowstorm Prospect and the Spencer Prospect. The Snowstorm property is located in two miles northeast of the Lucky Friday Mine near Mullan in Shoshone County, Idaho. Timberline controls 100% of the Snowstorm Project. As of September 30, 2010, Timberline controls 100% of the Snowstorm Project. The Spencer prospect covers 640 acres on the western end of the Kilgore-Spencer Trend. As of September 30, 2010, Timberline did not consider the Snowstorm prospect and the Spencer Prospect to be a material property.

Montana Copper-Silver Properties

Montana Copper-Silver Properties comprises four properties, such as The Minton Pass, East Bull, Standard Creek, Lucky Luke, Clear Peak and Copper Rock Prospects. These properties are considered early-stage exploration prospects. As of September 30, 2010, Timberline did no! t conside! r any of the Minton Pass, East Bull, Standard Creek, Lucky Luke, Clear Peak or Copper Rock prospects to be material properties.

Can Dreamworks Continue This Bullish Run?

With shares of Dreamworks Animation (NYSE:DWA) trading around $23, is DWA an OUTPERFORM, WAIT AND SEE or STAY AWAY? Let's analyze the stock with the relevant sections of our CHEAT SHEET investing framework:

T = Trends for a Stock’s Movement

Dreamworks is engaged in the development and production of animated films and their associated characters in the worldwide film, home entertainment, television, merchandising and licensing markets. The company aims to create family entertainment, including animated feature films, television specials and series, live entertainment properties and related consumer products, meant for audiences of all ages. The company’s films are distributed through many outlets by Paramount Pictures Corporation, a subsidiary of Viacom (NYSE:VIA).

In a recent deal with Netflix (NASDAQ:NFLX), Dreamworks has agreed to add its content to the streaming service as Netflix looks to ramp-up its original programming menu with popular choices from the maker of Shrek, Madagascar, and Kung Fu Panda. With this deal, Dreamworks will continue to gain exposure and surely a growing audience.

T = Technicals on the Stock Chart are Strong

Dreamworks stock is surging higher after establishing lows just last year. The stock is now pulling-back after such an impressive run. Analyzing the price trend and its strength can be done using key simple moving averages. What are the key moving averages? The 50-day (pink), 100-day (blue), and 200-day (yellow) simple moving averages. As seen in the daily price chart below, Dreamworks is trading slightly above its rising key averages which signal neutral to bullish price action in the near-term.

(Source: Thinkorswim)

Taking a look at the implied volatility (red) and implied volatility skew levels of Dreamworks options may help determine if investors are bullish, neutral, or bearish.

	Implied Volatility (IV)	30-Day IV Percentile	90-Day IV Percentile
Dreamworks Options	62.35%	80%	78%

What does this mean? This means that investors or traders are buying a very significant amount of call and put options contracts, as compared to the last 30 and 90 trading days.

	Put IV Skew	Call IV Skew
August Options	Flat	Average
September Options	Flat	Average

As of today, there is an average demand from call buyers or sellers and low demand by put buyers or high demand by put sellers, all neutral to bullish over the next two months. To summarize, investors are buying a very significant amount of call and put option contracts and are leaning neutral to bullish over the next two months.

On the next page, let’s take a look at the earnings and revenue growth rates and the conclusion.

E = Earnings Are Mixed Quarter-Over-Quarter

Rising stock prices are often strongly correlated with rising earnings and revenue growth rates. Also, the last four quarterly earnings announcement reactions help gauge investor sentiment on Dreamworks’s stock. What do the last four quarterly earnings and revenue growth (Y-O-Y) figures for Dreamworks look like and more importantly, how did the markets like these numbers?

	2013 Q1	2012 Q4	2012 Q3	2012 Q2
Earnings Growth (Y-O-Y)	-36.36%	-441.46%	26.09%	-62.50%
Revenue Growth (Y-O-Y)	-1.06%	20.87%	15.88%	-25.41%
Earnings Reaction	7.31%	-1.80%	6.69%	-6.30%

Dreamworks has seen decreasing earnings and mixed revenue figures over the last four quarters. From these numbers, the markets have had mixed feelings about Dreamworks’ recent earnings announcements.

P = Excellent Relative Performance Versus Peers and Sector

How has Dreamworks stock done relative to its peers, Twenty-First Century Fox (NYSE:FOXA), Disney (NYSE:DIS), Lions Gate Entertainment (NYSE:LGF), and sector?

	Dreamworks	Twenty-First Century Fox	Disney	Lions Gate Entertainment	Sector
Year-to-Date Return	43.39%	39.29%	29.36%	96.16%	35.87%

Dreamworks has been a relative performance leader, year-to-date.

Conclusion

Dreamworks is a provider of highly-demanded entertainment products to eager audiences around the world. A recent deal with Netflix may increase exposure for the company. The stock is now digesting gains after a strong surge higher, in recent months. Over the last four quarters, earnings have decreased for the company while revenue figures have been mixed which has produced mixed feelings among investors. Relative to its peers and sector, Dreamworks has been a year-to-date performance leader. Look for Dreamworks to OUTPERFORM.

Top 10 Heal Care Companies To Invest In Right Now

Roper Industries (NYSE: ROP  ) reported earnings on July 29. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended June 30 (Q2), Roper Industries met expectations on revenues and met expectations on earnings per share.

Compared to the prior-year quarter, revenue increased. Non-GAAP earnings per share grew. GAAP earnings per share dropped.

Gross margins increased, operating margins dropped, net margins contracted.

Revenue details
Roper Industries logged revenue of $804.9 million. The seven analysts polled by S&P Capital IQ hoped for revenue of $806.7 million on the same basis. GAAP reported sales were 8.2% higher than the prior-year quarter's $724.9 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

Top 10 Heal Care Companies To Invest In Right Now: KSK POWER VENTUR PLC ORD GBP0.001(KSK.L)

KSK Power Ventur plc, through its subsidiaries, engages in the development, operation, and maintenance of power generation assets primarily in India. The company develops and operates coal, gas, and lignite based power plants, as well as hydro electric power plants and wind farms. It has an operating capacity of approximately 933 mega watts. The company is also involved in identification, acquisition, development, beneficiation, and trading of coal and lignite reserves. In addition, it acts as an investment manager to third party funds for investments in energy businesses. KSK Power Ventur plc was founded in 1998 and is based in Douglas, the United Kingdom.

Top 10 Heal Care Companies To Invest In Right Now: Li3 Energy Inc(LIEG.OB)

Li3 Energy, Inc., an exploration stage company, focuses on the discovery and development of lithium and potassium brine and nitrate, as well as iodine deposits in Chile, Argentina, and Peru. It holds interests in the Maricunga project, which consists of mining concessions covering an area of approximately 3,553 acres located in the Salar de Maricunga in northern Chile; Cauchari mining concession covering an area of approximately 2,995 acres situated on brine salars in Argentina; and undeveloped mineral claims covering an area of approximately 19,500 acres located in the Regions of Puno, Tacna, and Moquegua in Peru. The company was formerly known as NanoDynamics Holdings, Inc. and changed its name to Li3 Energy, Inc. in October 2009. Li3 Energy, Inc. was founded in 2005 and is based in Lima, Peru.

10 Best Heal Care Stocks To Buy Right Now: Actions Semiconductor Co. Ltd.(ACTS)

Actions Semiconductor Co., Ltd. operates as a semiconductor company in the People?s Republic of China. The company designs, develops, and markets integrated platform solutions, including system-on-a-chips (SoCs), firmware, software development tools, and reference designs for the manufacturers of portable media players. Its SoCs are integrated circuits that incorporate digital signal processor, a micro controller unit, embedded memory, codec, a power management unit, and other components. The company?s SoCs products also comprise on-chip memory, controllers for color liquid crystal display, and analog components, including digital-to-analog converters, phase lock loops, and USB transceivers. Actions Semiconductor Co., Ltd.?s solution development kits include the embedded firmware code, software tools, and documentation to utilize its SoCs in portable media players. The company?s firmware utilizes an embedded structure design with interface that allows customers to pick and choose functionalities and add new device drivers. Its manufacturing software tools also allow its customers in the mass production of products based on its turnkey process. The company?s reference designs consist of detailed specifications of other required components and references, which allow customers to assemble a portable media player. Actions Semiconductor Co., Ltd. also offers semiconductor product testing services. The company sells its integrated platform solutions directly, as well as through distributors to portable media player manufacturers, brand owners, and value-added distributors in China and internationally. Actions Semiconductor Co., Ltd. was founded in 1999 and is headquartered in Zhuhai, the People?s Republic of China.

Top 10 Heal Care Companies To Invest In Right Now: PIMCO Municipal Income Fund(PMF)

PIMCO Municipal Income Fund is a closed ended fixed income mutual fund launched and managed by Allianz Global Investors Fund Management LLC. It is co managed by Pacific Investment Management Company LLC. The fund invests in the fixed income markets of the United States. It primarily invests in investment grade municipal bonds. The fund employs fundamental analysis with a top down stock picking approach to create its portfolio. It conducts in house research using proprietary models. PIMCO Municipal Income Fund was formed on June 29, 2001 and is domiciled in the United States.

Top 10 Heal Care Companies To Invest In Right Now: MedAssets Inc.(MDAS)

MedAssets, Inc. provides technology enabled products and services for hospitals, health systems, and other non-acute healthcare providers in the United States. It operates in two segments, Spend and Clinical Resource Management, and Revenue Cycle Management. The Spend and Clinical Resource Management offers a suite of cost management services, supply chain analytics, and data capabilities; medical device and clinical resource consulting, which includes implantable physician preference items, utilization management, and service line consulting; supply chain outsourcing and procurement services; capital equipment lifecycle management; lean process and workforce optimization solutions; process improvement consulting; business intelligence tools; and performance analytics and data management tools, such as service line analytics, spend analytics and strategic information services, e-commerce, client master item file services, electronic contract portfolio catalog, and decision support services. The Revenue Cycle Management segment provides a suite of products and services spanning the revenue cycle workflow from patient access and financial responsibility; case management, coding, and documentation; charge capture and revenue integrity; strategic pricing; claims processing; denials management and reimbursement integrity; revenue cycle and supply chain integration; revenue recovery and accounts receivable management; and outsourced services. It delivers technology-enabled solutions primarily through the company-hosted software, software-as-a-service, or Web-based applications. As of December 31, 2011, the company served approximately 4,200 acute care hospitals and 100,000 ancillary or non-acute provider locations. MedAssets, Inc. was incorporated in 1999 and is headquartered in Alpharetta, Georgia.

Top 10 Heal Care Companies To Invest In Right Now: Singapore Exchange Limited (S68.SI)

Singapore Exchange Limited operates as an integrated securities and derivatives exchange in Singapore and related clearing houses. The company provides listing, trading, clearing, depository, market data, and connectivity services; and member services and issuer services for the securities and derivatives market, as well as counterparty guarantee services. Its security products include stocks, American depository receipts, business trusts, company warrants, global depository receipts, real estates investment trusts, securities borrowing and lending, stapled securities, certificates, exchange traded funds, exchange traded notes, extended settlement, and structured warrants; and fixed income products comprise retail bonds, retail preference shares, SGS bonds, and wholesale bonds. The company�s derivative products include equity index, interest rates, and dividend index; commodities comprise agriculture, energy, and metals; and bulk commodities include freight, foreign excha nge forwards, interest rate swaps, and oil. It also operates SGX AsiaClear, a clearing platform for over-the-counter traded financial derivatives for technically specified rubber 20 (TSR20) rubber contract, bulk commodities, freight, interest rate swaps, and oil derivatives, as well as operates as a commodity exchange. In addition, the company provides data and information services, such as securities book, SGX derivatives quote, SGX news, SGX securities and derivatives market direct feed, SGX live data and news, historical market data, and broker services; and computer services and maintenance, and software maintenance services. Singapore Exchange Limited was incorporated in 1999 and is based in Singapore.

Top 10 Heal Care Companies To Invest In Right Now: Coffee Holding Co. Inc.(JVA)

Coffee Holding Co., Inc. engages in manufacturing, roasting, packaging, marketing, and distributing roasted and blended coffees in the United States and Canada. The company offers three categories of products: wholesale green coffee, private label coffee, and branded coffee. The wholesale green coffee product category consists of unroasted raw beans imported from worldwide that are sold to roasters and coffee shop operators in approximately 90 varieties. The private label coffee product category includes coffee roasted, blended, packaged, and sold under the specifications and names of others. As of October 31, 2010, the company supplied private label coffee under approximately 34 different labels to wholesalers and retailers in cans, brick packages, and instants in various sizes. The branded coffee product category comprises coffee roasted and blended to the company's own specifications and offered under its seven brand names in various segments of the market. The company also offers other products, including trial-sized mini-brick coffee packages; specialty instant coffees; instant cappuccinos and hot chocolates; and tea line products. Its coffee brands include Cafe Caribe, S&W, Cafe Supremo, Don Manuel, Fifth Avenue, Via Roma, IL CLASSICO, and Entenmann. Coffee Holding Co., Inc. markets its private label and wholesale coffee through trade shows, industry publications, face-to-face contacts, internal sales force, and non-exclusive independent food and beverage sales brokers, as well as through its Web site, coffeeholding.com. The company was founded in 1971 and is headquartered in Staten Island, New York.

Top 10 Heal Care Companies To Invest In Right Now: Anaren Inc.(ANEN)

Anaren, Inc. engages in the design, development, and manufacture of components, assemblies, and subsystems primarily for the wireless communications, satellite communications, and space and defense electronics markets worldwide. The company?s products receive, process, and transmit microwave and radio frequency (RF) signals. It provides Xinger line of products that consist of off-the-shelf surface mount microwave components for use in equipment for cellular base stations, wireless local area network, Bluetooth, and satellite television; and resistive products, such as resistors, power terminations, and attenuators for use in high power wireless, industrial, and medical applications. The company also custom splitting and combining products comprising RF backplanes, ferrite based power combiners, low-power radio receive splitter assemblies, and custom ferrite components for distribution of signals in wireless base station applications. In addition, it designs and manufactur es microwave-based hardware consisting of radar countermeasure subsystems, beamformers, switch matrices, radar feed networks, analog hybrid modules, and mixed signal printed circuit boards for use in radar systems, jamming systems, smart munitions, electronic surveillance systems, and satellite and ground based communication systems. The company markets its products to original equipment manufacturers and other industry participants. Anaren, Inc. was founded in 1967 and is based in East Syracuse, New York

Top 10 Heal Care Companies To Invest In Right Now: Vvc Exploration Corporation (VVC.V)

VVC Exploration Corporation engages in the exploration and development of mineral properties in Canada and Mexico. It primarily explores for gold, silver, lead, and zinc ores, as well as for precious and base metals. The company was incorporated in 1983 and is based in Toronto, Canada.

Top 10 Heal Care Companies To Invest In Right Now: Arcos Dorados Holdings Inc (ARCO)

Arcos Dorados Holdings Inc., incorporated on December 9, 2010, is a McDonald�� franchisee. As of December 31, 2010, the Company operated or franchised 1,755 McDonald��-branded restaurants, which represented 6.7% of McDonald�� total franchised restaurants globally. It operates McDonald��-branded restaurants under two different operating formats, Company-operated restaurants and franchised restaurants. As of December 31, 2010, of its 1,755 McDonald��-branded restaurants in the territories, 1,292 (or 74%) were Company-operated restaurants and 463 (or 26%) were franchised restaurants. It generates revenues from two sources: sales by Company-operated restaurants and revenues from franchised restaurants, which consist of rental income, which is based on the greater of a flat fee or a percentage of sales reported by franchised restaurants. As of December 31, 2010, it owned the land for 510 of its restaurants (totaling approximately 1.2 million square meters) and the buildings for all but 12 of its restaurants. It divides its operations into four geographical divisions: Brazil; the Caribbean division, consisting of Aruba, Curacao, French Guiana, Guadeloupe, Martinique, Puerto Rico and the United States Virgin Islands of St. Croix and St. Thomas; North Latin America division (NOLAD), consisting of Costa Rica, Mexico and Panama, and South Latin America division (SLAD), consisting of Argentina, Chile, Colombia, Ecuador, Peru, Uruguay and Venezuela. As of December 31, 2010, 35.1% of its restaurants were located in Brazil, 29.7% in SLAD, 27.1% in NOLAD and 8.1% in the Caribbean division. The Company conducts its business through its indirect, wholly owned subsidiary Arcos Dorados B.V.

Company-Operated and Franchised Restaurants

The Company operates its McDonald��-branded restaurants under two basic structures: Company-operated restaurants operated by the Company and franchised restaurants operated by franchisees. Under both operating alternatives the real estate location may ! either be owned or leased by the Company. It owns, fully manages and operates the Company-operated restaurants and retains any operating profits generated by such restaurants, after paying operating expenses and the franchise and other fees owed to McDonald�� under the Master Franchise Agreements (MFAs). In Company-operated restaurants, it assumes the capital expenditures for the building and equipment of the restaurant and, if it owns the real estate location, for the land as well. Under its franchise arrangements, franchisees provide a portion of the capital required by initially investing in the equipment, signs, seating and decor of their restaurants, and by reinvesting in the business over time. It is required by the MFAs to own the real estate or to secure long-term leases for franchised restaurant sites. It subsequently leases or subleases the property to franchisees.

In exchange for the lease and services, franchisees pay a monthly rent to the Company, based on the greater of a fixed rent or a certain percentage of gross sales. In addition to this monthly rent, it collects the monthly continuing franchise fee, which generally is 5% of the United States dollar equivalent of the restaurant�� gross sales, and pays these fees to McDonald�� pursuant to the MFAs. However, if a franchisee fails to pay its monthly continuing franchise fee, it remains liable for payment in full of these fees to McDonald��. As of December 31, 2010, it was engaged in several joint ventures, which collectively owned 24 restaurants, in Argentina, Chile and Colombia.

Restaurant Categories

The Company classifies its restaurants into one of four categories: freestanding, food court, in-store and mall stores. Freestanding restaurants are the type of restaurant, which have ample indoor seating and include a drive-through area. Food court restaurants are located in malls and consist of a front counter and kitchen and do not have their own seating area. In-store restaurants are part ! of a larg! er building and resemble freestanding restaurants, except for the lack of a drive-through area. Mall stores are located in malls like food court restaurants, but have their own seating areas. As of December 31, 2010, 808 (or 46.2%) of its restaurants were freestanding, 359 (or 20.5%) were food court, 265 (or 15.1%) were in-stores and 319 (or 18.2%) were mall stores. In addition, it has four non-traditional stores, such as food carts.

Reimaging

As of December 31, 2010, the Company had completed the reimaging of 308 of 1,569 restaurants. Many of the reimaging projects include the addition of McCafe locations to the restaurant. It has developed system-wide guidelines for the interior and exterior design of reimaged restaurants.

McCafe Locations and Dessert Centers

McCafe locations are stylish, separate areas within restaurants where customers can purchase a range of customizable beverages, including lattes, cappuccinos, mochas, hot and iced premium coffees and hot chocolate. As of December 31, 2010, there were 267 McCafe locations in the Territories, of which 12% were operated by franchisees. Argentina, with 71 locations, has McCafe locations, followed by Brazil, with 67 locations. In addition to McCafe locations, it has Dessert Centers. Dessert Centers operate from existing restaurants, but depend on them for supplies and operational support. As of December 31, 2010, there were 1,306 Dessert Centers in the Territories.

Product Offerings

The Company�� menus feature three tiers of products: affordable entry-level options, such as its Big Pleasures, Small Prices or Combo del Dia (Daily Extra Value Meal) offerings, core menu options, such as the Big Mac, Happy Meal and Quarter Pounder, and premium options, such as Big Tasty or Angus premium hamburgers and chicken sandwiches and low-calorie or low-sodium products, which are marketed through common platforms rather than as individual items. These platforms can be based on the ty! pe of pro! ducts, such as beef, chicken, salads or desserts, or on the type of customer targeted, such as the children�� menu.

Advisors' Opinion:

• [By Roberto Pedone]

  Arcos Dorados (ARCO) operates and franchises McDonald's restaurants in Latin America. This stock closed up 7.7% to $13.33 in Wednesday's trading session.

  Wednesday's Volume: 3.81 million
  
  Three-Month Average Volume: 856,761
  
  Volume % Change: 333%

  From a technical perspective, ARCO soared higher here back above both its 50-day moving average at $12.31 and its 200-day moving average at $12.86 with heavy upside volume. This move has now taken shares of ARCO out of its downtrend and the stock closed strong near the highs of the day. Shares of ARCO are now moving within range of triggering a near-term breakout trade. That trade will hit if ARCO manages to take out its intraday high of $13.42 and then once it clears more resistance at $14.35 with high volume.

  Traders should now look for long-biased trades in ARCO as long as it's trending above its 200-day at $12.86 or its 50-day at $12.31 and then once it sustains a move or close above those breakout levels with volume that hits near or above 856,761 shares. If that breakout triggers soon, then ARCO will set up to re-test or possibly take out its next major overhead resistance levels at $15.52 to its 52-week high at $16. Any high-volume move above those levels will then give ARCO a chance to tag $18 to $19.

• [By Jim Jubak]

  If you're the world's largest McDonald's franchisee, you expect to get hit when McDonald's (MCD) reports slowing growth (1.9% in the third quarter) in same-store sales. And when you're the largest operator of quick-service restaurants in Latin America, you expect to take a hit when growth slows in Brazil, one of your key markets. And if both happen at once, your shares plunge.

  That's a pretty good description of what happened to shares of Arcos Dorados (ARCO) when they went from $15.73 on Oct. 18 to $10.73 on Nov. 15, a drop of 31.8%. Since then, the shares have been slowly moving back up, climbing 17.8% through the close on Dec. 18.

  Why the recovery? Financial markets are looking ahead to easier year-to-year comparisons on growth that will kick in for McDonald's and Arcos Dorados after March. The recent gain on shares, though, outpaces the 7.7% gain for McDonald's in that period. That's because the general improvement on global economic growth will have more impact in the Latin American economies, where Arco Dorados operates, than in the United States, which accounts for 32% of McDonald's sales.

  The World Bank just raised its 2013 growth forecast for East Asia (to 7.5% from 7.2%) and for China (to 8.4% from 8.1%). I think that's positive news for Brazil's big commodity exporters. And for Brazil's economy as a whole. The World Bank is now projecting 4.2% growth for Brazil in 2013, up from a projected 2.9% in 2012. The 52-week high for shares of Arcos Dorados is $22.90.

Report: Merrill Lynch Legal Entity to Be Merged Into Bank of America, Brand Name Retained

Four years after purchasing Merrill Lynch, Bank of America (BAC) said it will end investment bank’s days as a separate legal entity. Bloomberg has the details:

AP

Bank of America Corp., the second-biggest U.S. lender, plans to merge its Merrill Lynch subsidiary into the parent company to reduce complexity and costs.

The move could happen as early as the fourth quarter and means Charlotte, North Carolina-based Bank of America assumes all the investment bank's obligations and debt, Merrill Lynch said in an Aug. 2 filing. Dissolving the legal entity also ends Merrill Lynch's need to file separate regulatory disclosures.

Shares of Bank of America have gained 1% to $14.47 today, while JPMorgan Chase (JPM)  has risen 0.7% to $53.66, Citigroup (C) has ticked up 0.3% to $51.01 and Wells Fargo (WFC) is up 0.3% to $43.13. The Financial Select Sector SPDR ETF (XLF) has gained 0.5% to $20.16.

Ouch! 8 Asset Managers Bitten Hard by Outflows

Outflows of bond funds and other products accelerated in late June. EPFR says that for the week ending on Wednesday, long-term products saw outflows of $40.7 billion. This is just a tad under the record equity-driven outflows of early August 2011.

While fixed-income mutual funds experienced $20.1 billion of outflows during the week, their ETF counterparts saw $3.3 billion go out the door. And equity products lost $13.1 billion worldwide.

How are individual asset managers doing?

Analysis released Friday by Jason Weyeneth, CFA, and Alex Levine of Sterne Agee Asset found the following trends for companies that reported their latest outflows and inflows:

---

For direct insights on the role of ETFs in client portfolios from multiple experts—including Rick Ferri, Ron Delegge, Skip Schweiss and more—we invite you to register for AdvisorOne’s premiere advisorcentric Virtual ETF Summit, which starts July 23 (and get multiple hours of CFP Board CE).

 

 

Gross Says Fed Won’t Tighten Till 2016

PIMCO manager Bill Gross has taken to Twitter to hammer home the idea that there’s value in bonds as the Fed continues to support markets with quantitative easing and bond buying.

The bond king’s Monday morning tweet was, initially, simple and direct: “One big idea—policy rates cannot normalize.” The manager fleshed out the tweet with “policy implications: curves remain steep, bullets beat barbells.”

 

GROSS: One Big Idea – policy rates cannot normalize. Portfolio implications: curves remain steep, bullets beat barbells.

 

While his Twitter followers asked for clarification (“could you explain the bullet strategy?” one tweet asked), an earlier Gross tweet on Sunday left little doubt the portfolio manager was long on bonds.

Gross: So bonds come out of their coffin & it’s not even Halloween. #Bernanke says follow policy rate & we agree. 2016 tightening @ earliest

Gross’s current tweets expand and amplify his latest long-form investment outlook, where — in his July letter to investors — he stated that bonds were oversold in response to Fed Chairman Ben Bernanke’s May comments about “tapering,” or reducing the Fed’s commitment to buying U.S. Treasuries and mortgage-backed securities.

In that outlook three weeks ago, Gross argued that the Fed was committed to a 25-basis-point federal funds rate to last beyond the end of its bond-buying program.

“If frontend curves are up to 50 basis points cheap, then intermediate curves — the 10-year Treasury — may be as much as 35 basis points too cheap," Gross wrote. "They belong in our opinion at 2.20% instead of 2.55%.”

Given the 10-year bond’s current 2.49% yield, the Gross investment thesis means bond prices have plenty of room to run up.

While Gross’ Monday tweet and July outlook focus on policy rates, market concern over “tapering” may also be yielding to diminished fear over the impact of reduced Federal Reserve bond buying.

Fed Chairman Ben Bernanke has walked back his tapering comments on a number of occasions, most recently in Senate testimony Thursday where he said that monetary authorities would be closely watching data on economic performance to determine timing issues.

An article in Monday’s Wall Street Journal notes that surveyed economists are now more pessimistic — amid disappointing corporate earnings and GDP growth — than when Bernanke announced the Fed’s intentions to gradually withdraw its support for Treasuries.

----

Check out Are TIPS From Bill Gross Worth Much Anymore? on ThinkAdvisor.

Obama: Decision by Fall on Next Fed Chief

Charles Dharapak/AP WASHINGTON -- President Barack Obama has said he's still considering a range of candidates to be the next chairman of the Federal Reserve and that whoever gets the job will need to focus in the near term on reducing unemployment. Obama said during a White House news conference Friday that former Treasury Secretary Lawrence Summers and current Fed Vice Chairman Janet Yellen are both highly qualified for the job, and that he's also considering others. He said he'll make his decision in the fall. Obama acknowledged that many think Summers has "an inside track" to the job after Obama gave a strong defense of him last week at a closed-door meeting with House Democrats. But Obama said he was simply standing up for Summers because he was "getting slapped around in the press for no reason." "The perception that Mr. Summers might have an inside track simply had to do with a bunch of attacks that I was hearing on Mr. Summers preemptively, which is sort of a standard Washington exercise that I don't like," Obama said.

Summers served as the head of the National Economic Council during Obama's first term and Treasury secretary under President Bill Clinton. Current Fed Chairman Ben Bernanke's current term ends Jan. 31. The president's choice to succeed Bernanke would have to be confirmed by the Senate. In his meeting with House Democrats, Obama had said that former Fed Vice Chairman Don Kohn was also being considered for the job. The administration's search for a successor for Bernanke has been unusually public. And it has stood in stark contrast to the more behind-the-scenes process that previous administrations have used for vetting potential Fed chairmen. A group of liberal Democratic senators has written Obama urging him to pick Yellen and House Democratic Leader Nancy Pelosi has also weighed in on Yellen's behalf. Summers has attracted support from former officials of the Clinton and Obama administrations who have said his crisis-management skills would make him the best choice. Obama said that his main objective is to find someone who strongly supports the Fed's dual mandate of keeping inflation in check while pursuing maximum employment. But he noted that unemployment is the bigger priority right now for the economy. "Right now the challenge is not inflation, the challenge is we've still got too many people out of work," Obama said "There's too much slack in the economy." -.

What separates extra-ordinary business from ordinary ones

Most businesses realise less than 10% of their potential while others rise to extraordinary heights. What separate an ordinary business from an extra-ordinary business is not the quantitative aspects rather the qualitative points.

Here we are going to discuss those qualitative factors that will have a long-term bearing on the business.

A. Financial Management �

� The management should encourage effective Balance Sheet management involving sufficient cash balances and relevant Working Capital management.

� The management should also encourage giving due regard to conservative accounting treatment.

� The finance department should ensure that sufficient transparency is maintained as suggested by accounting guidelines prescribed by ICAI and IFRS in future.

� The most commonly abused accounting practice is about related party transactions. The accounts and audit department should ensure that there is due compliance of Related Party Transactions in spirit and not just by the letter of law.

� The Balance sheet shall contain everything that shareholders should know for proper assessment of the company.

B. Strategic Management �

� The organization should define the vision and mission clearly. The business targets should be fixed and should be divided with parts delegated across the organization structure.
� Any new development in the industry and strategies of the competitors should be evaluated pro-actively rather than reactively and management should be ready with the corresponding counter-strategies.

C. General Principles �

� The organisation should be due compliant with the provisions and regulation of various statutes and should ensure timely payments of all the tax liabilities.

� If it is a listed entity the responsibility increases many fold. In listed companies, the shareholders wealth creation should be regarded as prime objective as they have invested their hard-earned money. Other stake holders such as creditors, debtors and lenders should also be regarded in organisation goal-setting.

� Proper public relations should be developed for constant communication with media to avoid contradictory views.

Extraordinary business is synonymous with business success.

Understanding that a business derives its revenues as part of a larger system � getting value from and contributing to that system � is what history has shown separates ordinary businesses from extraordinary ones. For last three decades India has produced several extra-ordinary businesses such as Infosys, Bharti etc which truly can be differentiated from ordinary ones

 

Gold Loans: Making Gold work for you!

Loans against Gold is traditionally considered taboo in households. Even when gold is pledged, it is still done as the last resort. Gold jewellery at home is considered on par with "Goddess Lakshmi" and hence hedging gold for a loan is considered inappropriate.

Gold loan market: This perception towards Gold loan has gradually undergone a change and individuals have started seeing the value of loan against gold as against availing a personal loan. The Gold loan market that was highly fragmented and dominated by local jewelers, has gradually seen the entry and growth of NBFCs and banks; a clear indication of the viability of gold loans as an important loan product.

The gold loans market has recently seen a lot of action from both the consumers and the industry. With gold spiraling upwards, borrowers are able to get decent valuation for their gold; and the process of getting such a secured loan is also largely hassle free. The southern Indian markets have been particularly lucrative for the gold loan business; ~ 85% - 90% of the gold loan market is in the States of Andhra Pradesh, Tamil Nadu and Kerala.

According to an estimation of the ICRA Management Consulting Services (IMACS), the organized gold loan-market in India stands at $8 billion and is growing at a compound annual growth rate (CAGR) of 40% since 2002. There is still ample potential in this segment and with more banks /NBFCs coming into this business, there could be considerable growth in terms of volume.

Below are the prominent features of Gold loans.

Secured	Loan is borrowed against the gold deposited by the applicant.
Low disbursal times	NBFCs and the unorganized sector disburse loans at a much faster pace as compared with banks which may take a few days.
Loan-to-value (LTV) ratios	With the RBI's latest norms, the gold loan extended would be as low as 60%-65%
Tenure	There is no minimum period for the loan and, if need be, one can return the loan amount the very next day. The average tenure of the loan is about 90 to 100 days. The tenure would normally not exceed 1 year
Varied interest rates	The interest rate depends on the tenure and amount of loan. It varies from 12% to 18% in the case of banks, while for NBFCs, it could reach 24%. The interest rates charged in the unorganized sector are much higher and can range from 30% to 50%. Reasonable rates of interest are especially applied if the loan to value (LTV) does not exceed 50-60%.
Multiple repayment options	Repayment can be structured as just interest amount with principal being repaid at the end of the period in one lump sum. Repayment through EMI, covering interest as well as principal, can also be an option.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Personal Loan vs. Gold Loan:

Personal loans are mostly unsecured loans taken for a variety of purposes. Gold loans are secured loans taken by keeping gold as collateral Personal loans are dependent on income drawn, ability to repay and credibility, and at times the bank/NBFC may even demand a surety. Gold loans are extended based on loan to value ratio; with the latest RBI guidelines, the loan-to-value could range between 60%-65%, as compared to the earlier 70%-75% Gold loans are short term loans and one mostly does not associate EMIs with them (although this is now being offered as an option by newer entrants in the gold loan segment). Thus if the seeker is on the lookout for a long term loan with repayment in the form of EMI, a personal loan is more suitable over a gold loan Gold loans may also work out cheaper, given that the personal loan is extended without any underlying asset. There is that much more due diligence / paper work to be conducted by the bank/NBFC in the case of an unsecured loan. Interest rates on Gold loan are generally lower, considering the underlying assurance, incase of the personal loan, the bank runs a huge loss of default, hence the higher rate.

Santarus Achieves New 52-Week High - Analyst Blog

The share price of Santarus, Inc. (SNTS) reached a new 52-week high, touching $24.07 on Jul 8, 2013. The closing price (as of Jul 8) of this San Diego, Calif - based specialty biopharmaceutical company reflects a massive year-to-date return of 108.1%. The average volume of shares traded over the last three months stood at approximately 989K. The company had a market capitalization of $1.53 billion on Jul 8.

Furthermore, Santarus has delivered a massive average positive earnings surprise of 200.2% over the last four quarters. The long-term expected earnings growth rate for this stock is 26%.

Growth Drivers

Earlier this year, Santarus received a major boost when the US Food and Drug Administration (FDA) approved Uceris for the induction of remission in patients suffering from mild-to-moderate ulcerative colitis. The product was launched in the US in Feb 2013, earlier than the company's initial launch date of Mar 2013. Santarus' shares were up significantly on the FDA approval of Uceris. We are positive on the Uceris launch - Uceris is off to a strong start and should continue performing well. Santarus reported Uceris sales of $6.6 million in the first quarter of 2013.

We are also positive on the company's efforts to stem the decline in prescription trends for the branded Zegerid. Santarus resumed promotion of Zegerid in Feb 2013.

We note that Santarus has an impressive pipeline with phase III candidates such as Ruconest and rifamycin SV MMX.

Ruconest is currently under FDA review for the treatment of hereditary angioedema (HAE) patients suffering from acute angioedema attacks. Ruconest is already approved in Europe for the same indication. We note that it enjoys orphan drug status in the US for treating acute attacks of HAE as well as for the prophylactic treatment of HAE. Once approved, Ruconest could have 12 years of data exclusivity.

We expect investor focus to remain on the Uceris launch, the Zegerid re-launch and the outcome of the FDA advis! ory panel meeting for Ruconest.

Estimate Revisions

Over the last 60 days, the Zacks Consensus Estimate for 2013 has marginally gone up from $0.84 to $0.85 per share. Meanwhile, the Zacks Consensus Estimate for 2014 has risen from $1.21 to $1.32 per share.

Other Stocks to Consider

Santarus currently carries a Zacks Rank #1 (Strong Buy). At present, companies like Jazz Pharmaceuticals (JAZZ), Cadence Pharmaceuticals Inc. (CADX) and Valeant Pharmaceuticals (VRX) also carry a comparable rank.

Enstar to Acquire Torus Insurance - Analyst Blog

To enhance its insurance business, Bermuda based Enstar Group Limited (ESGR) has inked a deal to acquire global specialty insurer Torus Insurance Holdings Limited. The purchase consideration equates to $692 million.

Enstar will partially finance the deal by issuing 1.9 ordinary voting shares and 0.7 million newly created non-voting preferred shares. These shares sum up to $346 million or 50% of the purchase consideration.

Out of the remaining $346 million of the purchase price, Enstar will provide $69 million in cash and the other $277 million will be provided by affiliates of Stone Point Capital LLC through an equity co-investment. Stone Point is a private equity firm that makes investments and manages financial services businesses. The deal is expected to culminate by the end of 2013.

In addition to Torus, StonePoint has also partnered with Enstar for its previously announced acquisitions of Atrium Underwriting Group and Arden Reinsurance Company.

Stone Point affiliates will provide up to $106 million of equity capital for the acquisition of Atrium Underwriting Group and Arden Reinsurance Company from Arden Holdings Limited which was announced in Jun 2013 to provide live underwriting services. This deal is also expected to culminate by the end of 2013. On culmination of both the aforementioned deals, Enstar and Stone Point will have an ownership interest of 60% and 40% respectively in Torus and Arden Holdings.

The company has been taking frequent steps to foray into the live insurance market. At this juncture, the aforementioned endeavors make us pose an optimistic stance on the company. First, the acquisition of Atrium is in line with the company's objective of portfolio expansion. Second, the company has also been working towards enhancing its existing business.

The acquisition of Torus satisfies this aim of the company by enhancing its core legacy operations. Last but not least, the partnership with Stone Point for the past 13 years have proved succe! ssful and is thus expected to add value to the above acquisitions.

Concurrently, Enstar has entered into an amended and restated five-year revolving credit facility with National Australia Bank, Barclays Bank and Royal Bank of Canada, effective Jul 2018. As per this deal, Enstar can borrow up to $375 million for a coupon rate of LIBOR plus 2.75% for amounts drawn and 1.1% commitment fee on undrawn funds.

Enstar currently carries a Zacks Rank #1 (Strong Buy). Among other favorable names in the insurance industry, Cigna Corp. (CI), CNO Financial Group Inc. (CNO) and Assured Guaranty Ltd (AGO) also carry a Zacks Rank #1 (Strong Buy).

Illuminate Your Portfolio With LEDs

Let's face facts- we're energy hogs. Energy usage continues to rise at a rapid pace as people across the world live more modern and connected lives. And while new sources of supply- from shale gas to solar power- have taken some of the pressures off of that high demand, the truth is we're still using electricity at an alarming rate.

To that end, a variety of governments have been seeking solutions to the potential energy crisis and energy efficiency measures have become the topic du jour. A consumer's look to do more with less, one of the biggest opportunities could lie within in commercial and residential lighting space. New technologies are the main culprit of energy use across the world, but they are also helping to reduce the amount of energy needed to light-up our planet.

For investors, focusing on this need for energy efficiency could provide great long-term gains for a portfolio.

A Bright Future
Lighting our homes and business may hold the greatest potential for energy savings.

Currently, lighting accounts for approximately 20% of U.S. electricity consumption. Lighting our residences account for up to 20% of total electricity use, while in commercial buildings it accounts for nearly 36%. Much that energy demand comes from variations of incandescent and gas-discharge lamps. These bulbs produce light via a filament that glows when electricity heats it. They're downright inefficient, with roughly 90% of the energy they consume given off as heat, rather than light.

However, times are changing.

Semiconductors called light emitting diodes or LED's are driving that change, and saving energy. Although created in the 1960s, new technologies in LEDs are moving the semiconductor from the TV remote to high-efficiency bulbs. To produce the same amount of light as 40 to 100 watt incandescent bulb, a comparable LED will only consume 3 to 13 watts of power, a significant savings. Not to mention, they produce little to no heat and have an average lifespan of 50,000 hours. The average traditional incandescent bulb only lasts about 1500 hours.

The potential energy savings, bulb longevity as well as the shrinking costs for the LEDs themselves are helping set up a huge surge in adoption by government, commercial and residential consumers. Analysts at Navigant Research forecast that revenue from LED lamp sales will rise to $8.7 billion by 2021. That's a growing at a compound annual growth rate (CAGR) of 23.2% from today's numbers. Industrial icon General Electric (NYSE:GE) -whose founder invented the first light bulb- predicts that LEDs will make up between 70 and 80% of the general lighting market in that time frame.

SEE: Emerging Markets' Environmental Commitment

Shining A Light
Given the potential for LEDs and other solid state lamps (SSL) to dominate the lighting market over the next few decades, investors with longer termed timelines may want to consider the sector for a portfolio. The bulk of the market for LED bulbs is produced by a handful of manufacturers. Conglomerates like GE, Phillips (NYSE:PHG), Toshiba (OTCBB:TOSBF) and Panasonic (NYSE:PC) control more than half of LED sales. These large firms have many moving pieces and lighting is just one facet. However, investors do have a few –albeit more volatile- options with regards to pure players.

The best could be industry standard-bearer CREE (NASDAQ:CREE). The company continues to be one of the top innovators across both the commercial and residential space and recently introduced a flood light that looks and lights like a traditional incandescent BR30 but uses 85% less energy. CREE continues drive costs lower as well. This new bulb is only $19.99. CREE shares aren't the cheapest- at a forward P/E of 36- but its premium may be deserved as the industry leader. Diversified chip-maker Rambus (NASDAQ:RMBS) also makes an interesting LED choice.

Just as with the regular semiconductor market, there are plenty of companies who manufacture the chips themselves, but only a handful that make the equipment to do so. Both Veeco Instruments (NASDAQ:VECO), and Aixtron (NASDAQ:AIXG) produce the equipment needed to make LED chips, while GT Advanced Technologies (NASDAQ:GTAT) also produces solar panel equipment along with various LED applications. The three firms should see long term growth in their LED portfolios as adoption of the technology and potential shortages will cause the need for more production equipment.

The Bottom Line
While new sources of supplies are helping curb the energy crisis, the truth is that we are still using more and more. That's were energy efficiency measures could come in with LED technology being a perfect example of a technology that has a real impact on the amount of energy consumed. Over the long haul, the growth and adoption of LEDs is assured.