Costco Is Worth the Premium

There is no doubt about the fact that a sizeable chunk of the world population has been touched by the Internet and that people have now gone online for most things like shopping, medical help and even raising funds for start-ups. While this is definitely a positive step in terms of technology advancement, this shift to the online world has done reasonable damage to the offline retail industry comprising of huge retail chains like Wal-Mart (WMT), Target Corp (TGT) and Costco (COST). However, Costco has been above the rest in terms of delivering consistent results because of its robust membership model, high employee morale and effective cost management.

Reasonable Numbers

For the second quarter of 2014, Costco's earnings slid to $1.05 per share from $1.24 per share, a year ago. Though the company's last year earnings were impacted by a $52 million or $0.14 per share tax benefit, the current earnings are still a few notches below the prior-year period. Sales were up by approximately 6% in quarter two on an overall basis and 3% on a comp basis. As management pointed out, the four-week period between Thanksgiving and Christmas saw weak sales as compared to the previous year mainly because of a snowy weather prevalent at that time.

The Might of e-Commerce

Besides the large collection of items that online websites boast, these e-commerce websites have also introduced the customers to a plethora of discount deals and other membership benefits. As such, customers have become more focused on the value-for-money aspect with regard to their purchases and scouting for the best deals. Costco is a fantastic alternative in brick-and-mortar retail stores, whose membership model bestows privileged benefits to customers at reasonable cost and thus, matches up with the might of e-retailing.

Costco's Membership Model Is a Hit

The data for the second quarter shows the effectiveness of Costco's membership model. New membership signups in the second quarter company-wide were up 13% year over year while the overall membership fees were up by 4% yyear over year to $550 million. Also, the paid executive memberships stood to the right of 14 million in the quarter, approximately an increase of 2,00,000 since the end of first quarter; it is significant to note that this type of membership represents approximately two-thirds of Costco's total sales.

I have given all these numbers to highlight quite an important point that a major chunk of this retail giant's revenue comes from membership fees as compared to product sales, unlike other chains like Wal-Mart and Target Corp. This is one of the reasons that Costco's quarterly result is notches better than Wal-Mart, which reported a decline of 0.4% in same-store sales for 14 weeks ended on Jan. 31. The reason that Wal-Mart's earnings beat consensus estimates by a whisker was the fact that analysts had lowered their expectations after the announcement of guidance warnings made by the company.

Wal-Mart's Dividend Announcement Was a Shocker

Wal-Mart's performance was affected by similar factors as Costco including harsh weather conditions, fluctuation in currency and strengthening presence of online retail enterprises. However, the event that actually jolted the investor community was an increase of a mere 2% in annual dividend, a considerable aberration from Wal-Mart's strong dividend history. As per past data, this dividend increase is the smallest in the last 10 years and could imply a negative foreseeable future.

This being said, it should also be factored in that brick and mortar retailers faced certain generic unfavorable conditions in December and this poor performance could be a one-off case. It is actually impressive to see that Wal-Mart is at least stepping up its game in e-retailing, which is under its control and can be leveraged. For instance, this report points out the company's plans to push for an e-retailing business model in India similar to that of Amazon (AMZN) and eBay (EBAY). This is a significant step from the company considering the fact that it failed to establish brick and mortar stores in the country after hanging there for almost six years.

Final Words

It is evidently clear that Costco's strength revolves around it membership model and the ability to provide a no-frills shopping experience to its privileged members at a low price. Additionally, the retail giant is making strides in the organic foods business, a growing segment of the grocery industry. As Richard Galanti pointed out in the earnings call: The organic business is big and growing fast and will provide a robust revenue stream for the future.

To sum it up, Costco is an ideal candidate for investment for the following reasons:

1. The threatening growth of online retail business has already done good damage to the brick-and-mortar stores. However, Costco's strong membership model has enabled it to build and sustain its revenues, making it the best pick among all the retail chains.

2. For the quarter, comparable store sales grew by around 3%, in spite of a weak economy and unfavorable business conditions. The primary reason for this growth is the huge discount, i.e. around 55% that members can avail of by purchasing from warehouse clubs. Thus, low prices and commendable quality have been consistently upheld by the company through its warehouse purchase model, and it is going to be a key element of Costco's future growth.

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A Relative Strength Play With Big Insider Buying

DELAFIELD, Wis. (Stockpickr) -- The market continues to struggle today, and that weakness is most notable with technology stocks, or stocks that trade on the Nasdaq exchange.

>>5 Stocks Ready to Pop on Bullish Earnings

The Nasdaq Composite is trending lower right now by around 25 points, or by 0.5%, to just under 4,060. Traders continue to puke up technology stocks despite the recent strong earnings reports from iPhone maker Apple (AAPL) and social media giant Facebook (FB).

If you take a look at the chart for the PowerShares QQQ Trust (QQQ), an ETF that tracks the Nasdaq 100 Index, you'll see that it has been downtrending over the last two months, with shares moving lower from its high of $91.15 to its recent low of $83.28 a share. The QQQ recently bounced sharply off that $83.28 low right up to its 50-day moving average, but this technology ETF has started to fail at it 50-day and once again is heading lower. A test of the 200-day moving average on the QQQ at just below $83 seems likely now.

>>5 Stocks Poised for Breakouts

Since the Nasdaq is weak and clearing in a medium-term downtrend, I am doing my scans and looking for names that trade on that exchange that are showing relative strength and not going down today. These names could be the next stocks to make sharp moves higher since the bears are gaining little traction in taking them down in a weak environment. Relative strength is a momentum investing strategy that compares the performance of a stock with the overall market or the index it trades on.

One Nasdaq-based name that's showing relative strength today in the face of the index's weakness is Sears Holdings (SHLD), a retailer with 2,172 full-line and 1,338 specialty retail stores in the U.S. operating through Kmart Holding Corporation and Sears, and 500 full-line and specialty retail stores in Canada operating through Sears Canada, a 95%-owned subsidiary. Over the last three months, shares of SHLD have trended higher by 12% vs. the Nasdaq composite, which has dropped by 1.4%.

Shares of SHLD are trading higher today by 3.8% to just over $43 with decent upside volume. The volume so far has eclipsed 1.11 million shares, which is getting very close to its three-month average volume of 1.56 million shares. The relative strength performance is worth following here for shares of SHLD, but another thing that should make traders perk up is the recent large insider buy. Company director Thomas Tisch recently bought 475,000 shares, or about $15.9 million worth of stock, at $33.40 to $33.60 per share. Tisch holds about 3.7 million shares of SHLD, which makes him one of its largest shareholders.

>>5 Stocks Under $10 Set to Soar

Another reason that traders should put this relative strength name on their trading radar is due to the large short interest in the stock. The current short interest as a percentage of the float for SHLD is very high at 36.8%. That means that out of the 43.35 million shares in the tradable float, 15.59 million shares are sold short by the bears. That is a monster short interest on a stock with a relatively low tradable float. The shorts who're heavily involved in this stock have failed to take it lower during the recent weakness in the Nasdaq. That could be a signal that shares of SHLD are slipping out of the control of the bears and the stock is setting up to trend much higher.

Sears Holdings is not performing very well from a fundamental perspective. This company has reported 28 consecutive quarters of sales declines, with a loss of close to $1.4 billion last year. There doesn't look to a turnaround for Sears Holdings anywhere on the horizon, but the company and the stock might be attractive here for other reasons. Some speculation has entered the market that Amazon.com (AMZN) would be wise to buy Sears Holdings for its vast real estate assets and other retail synergies. I doubt that happens, but what's more likely to occur is that Sears Holdings continues to spin off and sell assets and real estate like it recently did with its Lands End (LE) unit.

>>5 Rocket Stocks to Buy for May Gains

10 Best Railroad Stocks To Own Right Now

From a technical perspective, shares of Sears Holdings have been uptrending strong over the last few weeks, with shares moving higher from its low of $31.26 to its recent high of $44.67 a share.

During that uptrend, shares of SHLD have been consistently making higher lows and higher highs, which is bullish technical price action. The recent run for SHLD has now pushed the stock back above both its 50-day and 200-day moving averages, which is bullish. This move is quickly pushing shares of SHLD within range of triggering a near-term breakout trade.

Traders should look for long-biased trades in SHLD if it manages to break out above some near-term overhead resistance at $44.67 a share with high volume. Look for volume on that move that registers near or above its three-month average action of 1.56 million shares. If that breakout materializes soon, then SHLD will set up to re-test or possibly take out its next major overhead resistance levels at $52.50 to $56 a share. Any high-volume move above those levels will then give SHLD a chance to make a run at its next major overhead resistance levels at $62.57 to its 52-week high at $67.50 a share.

Market players can look for long-biased trades in SHLD off weakness as long as it's trending above its 200-day at $39.22 or its 50-day at $37.05 a share. One could also look to buy SHLD off strength once it takes out $44.67 a share with volume and then simply use a stop that's a comfortable percentage point from your entry.

-- Written by Roberto Pedone in Delafield, Wis.

RELATED LINKS:

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>>4 Hot Tech Stocks to Trade (or Not)

>>5 Mega-Cap Stocks to Trade for Gains

Follow Stockpickr on Twitter and become a fan on Facebook.

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

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

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

A French Company Being Taken Over by a U.S. Rival

The industrial conglomerates sub-industry includes major players that operate in several markets and draw a majority of revenue from overseas demand. The current trend is to focus on countries with higher growth potential.

In this article, let's take a look at a company that serves customers in more than 100 countries and try to explain to investors the reasons this is an apparently appealing investment opportunity.

The Biggest Acquisition

General Electric Co. (GE) operates as an infrastructure and financial services company worldwide. This company sells products ranging from aircraft engines and gas turbines to consumer appliances, railroad locomotives, medical equipment, business and consumer financing, media content and industrial products.

General Electric is one of the largest technology and financial services corporations in the world. It focuses on units that make jet engines, locomotives and industrial equipment and shrinking the finance division, called GE Capital. The firm expects to have a "double digit" growth in the coming years in countries like China. Few months ago, General Electric announced the joint venture with China XD Electric Co., which is one of the world's biggest transmission equipment makers.

Furthermore, yesterday we found on the news that General Electric will buy Alstom SA (ALO), the French builder of power plants and transmission gear. The deal could consist on the separation of Alstom's transport business, which manufactures high-speed TGV trains, to make easier the approval of the French government. A potential value for Alstom at about $13 billion would be about 25 percent more than its current market value. As a consequence, stock price surged as much as 18 percent in Paris, the biggest jump in the last nine years. General Electric will gain control of Alstom's technology for power transmission and power plant maintenance.

Relative Valuation, Earnings and ROE

In terms of valuation, General Electric sells at a trailing P/E of 20.9x, trading at a slightly premium compared to the industry mean. Earnings per share (EPS) have increased by 19.5% in the most recent quarter compared to the same quarter a year ago. This year, Wall Street expects an improvement in earnings ($1.7 versus $1.47).

In the next graph we include the stock price because EPS often lead the stock price movement. As we can appreciate in the chart, the price performance showed an interesting upward trend in the last five years.

Finally, I always like to see one of the most important financial ratios applying to stockholders, the best measure of performance for a firm's management: the return on equity. The ratio has slightly decreased from the same quarter one year prior. This is a clear sign of weakness within the company.

Let´s compare the current ratio with the peer group in the next table:

Ticker	Company Name	ROE (%)
GE	General Electric	10
MMM	3M Company	26.24
DHR	Danaher Corp.	12.08
CSL	Carlisle Companies Incorporated	12.46
PHG	Koninklijke Philips N.V	10.44
RAVN	Raven Industries Inc.	18.14

General Electric has a current ratio of 10% which is lower than all the comps: 3M Company (MMM), Danaher Corp. (DHR), Carlisle Companies Incorporated (CSL), Koninklijke Philips N.V (PHG) and Raven Industries Inc. (RAVN).

Final Comment

As outlined in this article, under the General Electric-Alstom deal, strong synergies are going to surge as well as a good fit in the company´s growth strategies. These conclusions make me feel bullish on General Electric.

I would recommend investors to consider adding the stock for their long-term portfolios. Manning & Napier Advisors, Inc., which is the only manager that has beaten S&P500 for consecutive 10 years, has taken long positions on it on the first quarter of 2014.

Disclosure: Victor Selva holds no position in any stocks mentioned.

Currently 5.00/512345 Rating: 5.0/5 (3 votes)

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Hot International Companies To Invest In 2014

Hot International Companies To Invest In 2014: OriginOil Inc (OOIL)

OriginOil, Inc., incorporated on June 1, 2007, is a technology company. The Company is primarily involved in research and development activities, and sales of pilot and demonstration equipment. The Company has developed an energy production process for harvesting algae and cleaning up oil and gas water. To develop the energy and ancillary markets, the Company sells smaller-scale equipment, such as the Algae Appliance. The Company's process, CLEAN-FRAC, represents a generation of water treatment that is chemical free. The Company's water cleanup technology, Electro Water Separation (EWS), is a chemical-free process that extracts organic contaminants from large quantities of water. Its products include EWS Algae, EWS Algae A4, EWS Algae A60, EWS Algae A200, EWS Petro P160, and EWS Aqua Q60.

The Company intends to embed its technology into larger systems through licensing and joint ventures. The Company is in the process of pursuing secondary licensing opportu nities outside of energy, including aquaculture. EWS Algae A4 is an entry-level algae harvester designed to make it easier and faster for producers and researchers to try and buy the Company's harvesting technology. EWS Algae A60 is a pilot scale algae harvester providing a low energy, chemical-free, continuous flow wet harvest system to dewater and concentrate the microalgae. EWS Petro Model 160 is designed to remove organics, such as crude oil, and suspended solids and bacteria from process water, such as produced or frac flowback water at a continuous flow rate of one barrel per minute or 160 liters per minute in continuous, chemical free operation. EWS Aqua Q60 is a commercial fish farming pond water treatment system, designed to clean pond water of ammonia, bacteria and aquatic animal pathogens in a continuous loop.

Advisors' Opinion:

• [! By CRWE]

  Today, OOIL has shed (-3.12%) down -0.01 at $.31 with 95,929 shares in play thus far (ref. google finance Delayed: 2:04PM EDT October 15, 2013).

  OriginOil, Inc. previously reported it has signed its first pay-per-barrel agreement with Industrial Systems, Inc. (ISI) for a water treatment system integrating OriginOil's process as the first stage of treatment.

  Delta, Colorado-based ISI has agreed that it will operate the Model P160 as part of its overall frac flowback water cleanup service, and pay OriginOil a fee for each barrel processed.

source from Top Stocks Blog:http://www.topstocksblog.com/hot-international-companies-to-invest-in-2014.html

Chesapeake’s Troubles Make It a Stock to Stay Away From

Chesapeake Energy (CHK), America's second-largest natural gas producer, has struggled with its numbers as the natural gas market had had a tough time of late. Chesapeake incurred a net loss of $159 million in the last reported quarter. It was, however, able to increase its revenue by 28% to $4.54 billion.

Tough Times

Nevertheless, the dynamics of the natural gas industry do not look very impressive. Therefore, this will affect the company's performance in the long run and lead to disappointment. Moreover, Chesapeake's daily production declined 3% in the last quarter as a result of reduction in well connections. Chesapeake has also terminated drilling rig contracts recently as it incurred heavy expenses due to severe weather conditions and other macroeconomic headwinds such as growing demand of shale gas that is affecting natural gas pricing, eventually leading to further loss of its market share.

Top Oil Service Companies To Own In Right Now

Chesapeake is concentrating on various aspects of its business to get rid of these tough situations and has definite and concrete strategies to raise its cash through sale of assets that will assist the company to decrease its expenditure and boost its income. In addition, Chesapeake is planning to spin off the oil field service division and raise about $4.4 billion. Chesapeake is also focusing on discovering and developing natural gas and oil assets onshore in the U.S. through these spin-off strategies. This could perhaps turn the company to profitability in the long run.

Selling Assets

In addition, Chesapeake has also declared the sale of up to 437 natural gas units and related assets as natural gas pricing remains unfavorable due to rising demand of shale gas. The evolution of horizontal drilling and hydraulic fracturing over the past few years has allowed companies to tap shale gas at cheaper rates. This, on the contrary, has led to increased production of natural gas in the U.S., well above the growth in consumption that has affected its price ultimately.

However, Chesapeake has recently noticed significant increase in prices of natural gas abroad due to accelerated export demand. Hence, the company expects much better financial and operational performance in the current fiscal 2014. Further, exports are expected to play a key role in lifting natural gas prices in the U.S. despite surging supply from shale gas resources.

In addition to this, electricity demand is also expected to grow in the future, a positive sign for the company that will certainly help natural gas price to shoot up, because of the fact that natural gas has much lower carbon intensity compared to coal. This provides the company an attractive alternative fuel for new power generation plants because of relatively low capital costs and favorable heat rates. But, analysts expect the momentum in reduction of natural gas prices will continue in the future as well. Even Chesapeake feels the same pressure on the natural gas pricing that is supposed to decline in the future, therefore Chesapeake is focusing on asset sales to maintain profitability, or else it would be in dire straits.

But the company can take heart from the fact that natural gas is expected to remain the fastest growing global energy source until 2013, growing at a rate of 1.9%, regardless of current pricing. However, the shore-term prediction does not look promising as natural gas prices have declined in the past six to seven years.

Conclusion

Overall, the present scenario for Chesapeake is very complex. As a result, investors would be better off if they don't invest in the stock.

Currently 2.50/512345 Rating: 2.5/5 (2 votes)

Voters:

Subscribe via Email Subscribe RSS Comments Vgm - 11 hours ago

Your view contrasts with that of Longleaf, as discussed in their latest Quarterly Report from last week. But I'd agree the current price level is not attractive entry point:

"Energy company Chesapeake retreated 5% in the quarter following a strong 2013. Short-term questions about production levels, the mix between gas and liquids, and additional asset sales pressured the stock. Our appraisal, however, grew slightly due to successful cost reductions. CEO Doug Lawler has made substantial progress since taking the helm last year, and we believe his capital discipline and operational effectiveness will reward shareholders."

(I am long CHK and optimistic for its 3-5 year future)

Please leave your comment:
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Edmunds:The key to simplifying your life

After a long and brutal winter it was easy to wonder if spring would ever come. But, yesterday while walking the park I noticed tiny buds on some trees and daffodils swaying in the warm 75-degree breeze. And I breathe a sigh of relief that spring has finally arrived.

Spring serves as a reminder to get busy with the spring-cleaning. It's message says that we can lighten the load and pack up the winter gear in exchange for the things that are less burdensome.

Spring is my reminder to live the simple life. I get visions of enjoying ice tea and warm weather and taking walks in the park and throughout the neighborhood to watch the bulbs planted last fall come into their own.

It's enjoying these simple things that makes life grand, and it takes this time of the year to remind me to check and double check that I continue to simplify my life.

You may think that being an entrepreneur and simplifying your life are contradictory activities, especially if you envision the entrepreneur as having a busy schedule and a simple lifestyle as being laid back and easy.

The truth is that many people are happy living a simple lifestyle. And a great number of people are millionaires who are first-generation entrepreneurs.

One of my favorite nonfiction books is The Millionaire Next Door. The authors, Thomas Stanley and William Danko, learned through extensive research that most financially well-heeled entrepreneurs achieved their success because of a simple lifestyle.

They wrote that self-discipline is the key word they consistently came across when studying how successful individuals, most of whom were entrepreneurs, attained their way of life.

Simplifying your life isn't difficult if you apply a little self-discipline. You don't have to give up your city home and rush off to the country to buy a farm. You can start right now and where you are.

To live a simple lifestyle, you can trade material trappings for freedom and less stress, quality instead of quantity.

! Take a look at how you spend your money. Do you insist on designer clothes, flashy cars, support your adult children, buy all the latest gadgets, and have to attend every social event?

If your money is fueling one or more of the above and you are happy, skip the rest of this article. Simple living is not for everyone.

I remember some time ago when cell phones became popular I was walking the park and stopped to go to the restroom. I accidently dropped my cellphone into the toilet. When I called the cell phone company to see if they would replace my phone they told me that they would be happy to replace the phone for a mere $400. I wasn't interested in buying a phone and decided to see what would life be like without having a phone attached to me.

I spent 3 years without a cell phone and it was the most peaceful years of my career. Yes I now have a cell phone that no one calls me on because they know I will not answer but I do receive and send text messages. It seems to be a much easier system of living.

Recently I was standing in line at the post office and a phone started ringing. Three women started rummaging through their purses in search of their phones to see if it was their phone that was ringing. Turns out the ringing phone belonged to the woman in front of me and she dropped her packages and nearly dumped everything out of her purse in search for that ringing phone. By the time she found her phone it had stopped ringing and she looked both frustrated and aggravated. I am all to familiar with the problems that a purse can bring.

I decided one day that life should become less complicated as I grew older. I started by giving up the burden of carrying a purse. Who needs both a purse and a brief, was my thought. The decision wasn't difficult, since most of the time I could never find things in it when I wanted them. Just searching for my keys was a major event.

The final straw came one morning when the trash had to be taken out. To save myself time ! and an ex! tra trip back into the house, I grabbed my car keys from the kitchen counter, my purse, briefcase and the trash.

I dropped the trash off at the curb and took off in the car headed for the office. After arriving at my desk after a 45 minute commute, I reached for my purse to put my keys away—and yikes, no purse! I ran back to the parking garage to search the car, hoping that maybe I had left it on the seat. There was no purse in the car!

Then I thought it might have slipped off my shoulder when I set the trash down. I had visions of my purse being crushed in the garbage truck's compactor.

I drove at breakneck speed, shaving about 15 minutes off of that 45-minute commute. I prayed all the way home that the trash men hadn't arrived. When I turned onto our street I breathe a sigh of relief. The trash was still there! I jumped out of the car and rushed over to the green plastic bags, feeling certain that my purse would be there. No Purse!

Frustrated and upset, I entered the house. When I walked into the kitchen, there on the counter, was my purse.

10 Best Paper Stocks To Buy Right Now

That fiasco was more than enough for me. That day, instead of returning to my office, I stayed home, emptied my closet of purses, and donated them to Goodwill. The problems, time and energy my purses had caused were just not worth it.

Cutting back on spending is another way to simplify your life. If you are looking to simplify, the next time you go shopping and see what you think is a "must have," ask yourself, "Do I have to maintain it, dust it, wash it, feed it or store it?" If you answer yes to these questions and it doesn't cause clutter or a burden in any way, then go for it.

That brings me to my final thoughts on simplifying life; clearing and cleaning away clutter. I once read somewhere that if you go through a whole season and didn't wear it or use it, then get rid of it.

A s! implified lifestyle means more freedom, which means more time, More time for the things you want and need to do to balance your life.

Once I simplified my life, I spent less time cleaning, dusting, and looking for things like my keys and I enjoy life more.

Let the joy of these spring days be a reminder of how beautiful the simple life really is.

Gladys Edmunds, founder of Edmunds Travel Consultants in Pittsburgh, is an author and coach/consultant in business development. Her column appears Wednesdays. E-mail her at gladys@gladysedmunds.com. An archive of her columns is here. Her website is gladysedmunds.com

.

Here's Why Apple Supplier TriQuint Can Soar After Earnings

Apple (AAPL) supplier TriQuint Semiconductor (TQNT) has been zooming this year with the stock up almost 60%. TriQuint's share price received a boost after it announced a merger with RF Micro Devices (RFMD). Now, TriQuint is expected to release its first-quarter earnings report in April 23. Let's take a look at what's expected of the company and if it can sound out a good outlook.

What Are the Expectations?

Analysts, according to Yahoo! Finance, expect TriQuint to post revenue of $176 million in the first quarter. This would be a drop of around 4% from the year-ago period. The bottom line, on the other hand, is expected to improve from a loss of $0.17 last year to $0.11 in the first quarter. TriQuint had issued a mixed outlook the last time it reported earnings, so the consensus estimates now reflect the company's own expectations.

TriQuint's mixed outlook was on account of a drop off in sales at Apple, which started cutting orders due to excess inventory. However, Apple is expected to be a solid growth driver going forward due to a multitude of reasons, driving TriQuint's revenue higher, while the merger with RF Micro will give rise to strong cost synergies that would enable the company to improve the bottom line.

Apple's Expected Moves

Apple (via Foxconn) is TriQuint's largest customer with 44% of revenue. TriQuint supplies power amplifier chips to Apple, so if Apple is able to grow its addressable market, TriQuint should benefit.

Recently, it has been reported that Apple is working toward releasing a couple of iPhones next time. One would be a 4.7-inch version that would bring Apple close to flagship devices from rivals, while a larger model at 5.5 inches is also expected to help Apple benefit from the phablet market.

This is a smart move on behalf of Apple. According to CNET (which got hold of analyst Ming Chi-Kuo's latest reports):

"iPhone 6 4.7/5.5 phablet: There certainly has not been a dearth of iPhone 6 rumors, so this part of the Kuo's report was probably the least revelatory. He essentially repeated rumors of 4.7-inch and 5.5-inch iPhones while offering a few additional details.

The 5.5-inch model may be positioned as a phablet, according to the analyst. It will come out "later in the holiday quarter" and may eat into sales of the iPad Mini. The 5.5-inch model will pack a big battery with "50% to 70% more watt-hours" than the 5S.

Only the high-end phones, such as a 64GB version of the 5.5-inch device, will get a sapphire screen cover, according to the analyst.

The 4.7-inch model will be the most popular, Kuo claims, with full-year shipments hitting about 60 million units."

Apple's move into phablets will help the company grab a share of the phablet market that's expected to grow to 146 million units by 2016 from just 60.4 million units last year, according to Statista. Since TriQuint is an Apple supplier and almost half of its top line is driven by the smartphone behemoth, these moves should certainly benefit the company in the future.

Cost Reduction Moves

TriQuint is looking to improve its product mix, as a result of which it should see an increase in its profitability going forward. In addition, TriQuint is reducing its overall gas capacity, resulting in lower cost and better alignment to market requirements in response to changes in industry demand. The company's focus on higher value products, reducing unused capacity, and tightly managing the overall spending led to a better performance in the second half of last year and the trend is expected to continue going forward.

In 2014, the gross margin is expected to average 40% for the last three quarters, excluding Q1, where lower demand is anticipated due to short-term inventory correction. Looking forward, the increasing handset filter content, strong base station demand, and cost reductions in operations are expected to increase gross margin by approximately 500 basis points from 2013.

TriQuint is investing in higher value products, including discrete filters. These products are designed to support the growing demand for LTE devices and also push up margins. To improve its cost profile, TriQuint reduced gas capacity in the fourth quarter to better align its factory to market demand. Moreover, it is transitioning its Texas gas scan line from 4 inches to 6 inches to improve yield, throughput, and reduce cost in order to further optimize its gas footprint.

RF Micro Gains

TriQuint looks well-positioned for growth in the long run. Also, the company is looking to reduce costs and the merger with RF Micro will do just that. RF Micro and TriQuint will together have a diversified and broad portfolio of products to address the smartphone market. Moreover, the cost synergies that are expected as a result of this merger will play a big role in driving earnings growth in the future. Both companies expect cost synergies of around $150 million.

Conclusion

TriQuint's strong performance should continue going forward. The company's relationship with Apple and its cost-reduction moves should ensure that it performs well in the long run. Once the merger with RF Micro is complete, TriQuint will be in an even better position to make the most of the smartphone and connectivity market. As such, investors should still consider buying TriQuint even after its rapid rise this year.

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Top Building Product Stocks To Buy Right Now

Investors are bargain hunting in shares of housing contractor Installed Building Products Inc.(IBP), which saw its initial public offering price well below expectations late Wednesday.

The Columbus, Ohio-based company settled for a much smaller initial share sale than it had planned, as institutional investors involved in pricing the deal late Wednesday balked at the valuation the company had pitched. The IPO priced at $11 a share, versus the company�� forecast of $14 to $16. Further reducing the deal�� size, the company sold 17% fewer shares than expected.

But the shares opened up 12% in their trading debut Thursday, and extended gains later in the morning.

Installed Building Products��debut follows mixed performance from shares of some newly public building-products companies. Through Tuesday, siding manufacturer Ply Gem Holdings Inc.(PGEM)�� shares were down 39% from the offer price in its $381 May debut. Wood-products maker Boise Cascade Co.(BCC) was up 46% from its $284 million February IPO.

Top Building Product Stocks To Buy Right Now: American International Group Inc.(AIG)

American International Group, Inc. is an international insurance organization. The company operates property and casualty insurance networks worldwide and conducts activities in the U.S. life insurance and retirement services industry. It also involves in commercial aircraft leasing and residential mortgage guaranty insurance businesses. The company, through Chartis Inc., provides various property and casualty insurance products under commercial and consumer categories worldwide. These products include surplus lines, executive liability/directors? and officers? liability, employment practices, excess casualty, and travel/assistance lines. American International Group, through SunAmerica Financial Group, offers a suite of life insurance and retirement products and services, including term life, universal life, accident and health, fixed and variable deferred annuities, fixed payout annuities, mutual funds, and financial planning products and services to individuals and grou ps in the United States. The company, through International Lease Finance Corporation, operates as an aircraft lessor that acquires commercial jet aircraft from various manufacturers and other parties, and leases those aircraft to airlines worldwide. It also sells aircraft from its fleet to other leasing companies, financial services companies, and airlines, as well as provides management services to third-party owners of aircraft portfolios. American International Group, through United Guaranty Corporation, issues residential mortgage guaranty insurance that covers mortgage lenders from the first loss for credit defaults on high loan-to-value conventional first-lien mortgages for the purchase or refinance of one- to four-family residences in the U.S. and internationally. The company was founded in 1967 and is based in New York, New York.

Advisors' Opinion:

• [By Jessica Alling]

  Last week Citigroup (NYSE: C  ) made headlines when it was revealed that a House bill that would weaken some of the derivative rules in the Dodd-Frank bill was largely composed of suggestions from the bank. As one of the largest derivatives traders in the U.S., it's no surprise that Citi wanted to get involved in the regulatory changes. But now we're seeing some other financial companies step up to the plate to take their shot at regulations through a new avenue. With AIG (NYSE: AIG  ) and JPMorgan Chase� (NYSE: JPM  ) leading the pack, is it a good thing for investors if Wall Street goes to Washington?

• [By Dan Caplinger]

  Finding the most attractive stock in a given industry
  Book value is just one way to estimate true intrinsic value, and just because a stock trades at or below book value doesn't prevent it from suffering losses. Plenty of stocks trade well below book value, with infamous insurance giant AIG (NYSE: AIG  ) being a particularly good example. Even after its recent rebound in light of its refocusing its business on its core insurance unit and selling off non-core assets, AIG still trades at just two-thirds of its book value. One risk with book value is that if the value of underlying assets doesn't match up with what's on a company's books, then valuations based on book value will be inherently misleading.

• [By Jessica Alling]

  After Monday's tornado in Oklahoma, Allstate (NYSE: ALL  ) , Progressive Insurance (NYSE: PGR  ) , and�Traveler's Companies (NYSE: TRV  ) all fell in the market. Along with AIG (NYSE: AIG  ) , these insurance companies represent four of the top 10 providers for property and casualty insurance in the U.S. But when disaster strikes, should investors flee, or hunker down and wait it out?

Top Building Product Stocks To Buy Right Now: China Yuchai International Limited (CYD)

China Yuchai International Limited, through its subsidiaries, manufactures and sells diesel and natural gas engines primarily in the People�s Republic of China (PRC). It operates in two segments, Yuchai and HLGE. The company provides engines for light, medium, and heavy-duty for highway vehicles; generator sets; and marine and industrial applications, as well as supplies after-market parts and services. It also offers diesel power generators that are used in the construction and mining industries; diesel engine parts; and remanufacturing services. In addition, the company operates hotels and engages in property development activities primarily in the PRC and Malaysia. It distributes its products directly to auto plants and agents. The company was founded in 1951 and is based in Singapore.

Advisors' Opinion:

• [By Rich Duprey]

  Following the abrupt resignation of director and President Benny H. Goh on May 27, China Yuchai International (NYSE: CYD  ) has been operating with an interim officer, Kok Ho Leong,�who also held the position of CFO while a replacement was found.

Best India Stocks To Buy Right Now: Western Gas Partners LP (WES)

Western Gas Partners, LP (the Partnership) is a master limited partnership (MLP) organized by Anadarko Petroleum Corporation to own, operate, acquire and develop midstream energy assets. The Partnership operates in East and West Texas, the Rocky Mountains (Colorado, Utah and Wyoming) and the Mid-Continent (Kansas and Oklahoma) and are engaged primarily in the business of gathering, processing, compressing, treating and transporting natural gas, condensate, natural gas liquids (NGLs) and crude oil for Anadarko and third-party producers and customers. As of December 31, 2011, the Company�� assets consist of 11 gathering systems, seven natural gas treating facilities, seven natural gas processing facilities, one NGL pipeline, one interstate pipeline, and interests in a gas gathering system and a crude oil pipeline. Its assets are located in East and West Texas, the Rocky Mountains (Colorado, Utah and Wyoming), and the Mid-Continent (Kansas and Oklahoma). In August 2012, it has acquired an additional 24% membership interest in Chipeta Processing LLC from Anadarko Petroleum Corporation.

On January 13, 2012, the Partnership completed the acquisition of Anadarko�� 100% ownership interest in Mountain Gas Resources, LLC, which owns the Red Desert Complex (Red Desert), a 22% interest in Rendezvous Gas Services, LLC (Rendezvous) and related facilities. Red Desert includes the Patrick Draw processing plant, the Red Desert processing plant, 1,295 miles of gathering lines and related facilities. Rendezvous owns a 338-mile mainline gathering system serving the Jonah and Pinedale Anticline fields in south-western Wyoming, which delivers gas to the Granger complex and other locations. In July 8, 2011, the Company acquired the Bison gas treating facility from Anadarko. In February 28, 2011, it acquired a natural gas gathering system and cryogenic gas processing facilities, collectively referred to as the Platte Valley assets, financed with borrowings under its revolving credit facility. On February 28,! 2011, Kerr-McGee Gathering LLC, a wholly owned subsidiary of Western Gas Partners, LP (the Partnership), acquired midstream assets from Encana Oil & Gas (USA) Inc. These assets are located in the Denver-Julesburg Basin, northeast of Denver, Colorado, and consist of an approximately 1,054-mile natural gas gathering system and related compression and other ancillary equipment, and gas processing facilities with current cryogenic capacity of 84 one million cubic feet per day.

Rocky Mountains

The Bison treating facility consists of three amine treaters with a combined treating capacity of 450 million cubic feet per day located in the north-eastern corner of Wyoming. The assets also include three compressors with a combined compression of 5,230 horsepower and five generators with combined power output of 6.5 megawatts. The Company operates and has a 100% working interest in the Bison assets, which provide carbon dioxide (CO2) treating services for the coal-bed methane gas gathered in the Powder River Basin. During the year ended December 31, 2011, Anadarko provided approximately 73% of the throughput at the Bison treating facility, and the remaining throughput was from one third-party producer. The Bison treating facility treats and compresses gas from the coal-bed methane wells in the Powder River Basin. The Bison Pipeline, operated by TransCanada, is connected directly to the facility, which is the only inlet into the pipeline. The Bison treating facility also has access to the Ft. Union and Thunder Creek pipelines.

The Company is the managing member of Chipeta, a limited liability company owned by the Partnership (51%), Ute Energy Midstream Holdings LLC (25%) and Anadarko (24%). The Chipeta complex includes a natural gas processing plant with two processing trains, the Natural Buttes plant, and a 100% Partnership-owned 17-mile natural gas liquid (NGL) pipeline connecting the Chipeta plant to a third-party pipeline. The Chipeta assets has cryogenic and refrigeration ! processin! g capacity of 670 million cubic feet per day. These assets provide processing and transportation services in the Greater Natural Buttes area in Uintah County, Utah. During 2011, Chipeta began construction of a second cryogenic train at the Chipeta plant with processing capacity of approximately 300 million cubic feet per day. During 2011, Anadarko is a customer on the Chipeta system with approximately 94% of the system throughput. The Chipeta system has access to Anadarko and third-party production in the area with excess available capacity in the Uintah Basin. Anadarko controls approximately 217,000 gross acres in the Uintah Basin. Chipeta is connected to both Anadarko�� Natural Buttes gathering system and to the Three Rivers gathering system owned by Ute Energy and a third party. The Chipeta plant delivers NGLs through its 17-mile pipeline to the Mid-America Pipeline (MAPL), which provides transportation through the Seminole pipeline in West Texas and ultimately to the NGL markets at Mont Belvieu, Texas and the Texas Gulf Coast. The Chipeta plant has natural gas delivery points through the pipelines, which includes Colorado Interstate Gas Company (CIG), Questar Pipeline Company�� pipeline, and Wyoming Interstate Company, Ltd.

The 47-mile Clawson gathering system, located in Carbon and Emery Counties of Utah, to provide gathering services for Anadarko�� coal-bed methane development of the Ferron Coal play. The Clawson gathering system provides gathering, dehydration, compression and treating services for coal-bed methane gas. The Clawson gathering system includes one compressor station, with 6,310 horsepower, and a CO2 treating facility. During 2011, Anadarko is the shipper on the Clawson gathering system with approximately 97% of the total throughput delivered into the system, and the remaining throughput on the system was from one third-party producer. Clawson Springs Field has approximately 7,000 gross acres and produces primarily from the Ferron Coal play. The Clawson gathering s! ystem del! ivers into Questar Transportation Services Company�� pipeline. The Fort Union system is a 324-mile gathering system operating within the Powder River Basin of Wyoming, starting in west central Campbell County and terminating at the Medicine Bow treating plant. The Fort Union gathering system consists of three parallel pipelines and includes CO2 treating facilities at the Medicine Bow plant. At CO2 levels, the system is capable of treating and blending over one billion cubic feet per day while satisfying the CO2 specifications of downstream pipelines. Fort Union Gas Gathering, LLC is a partnership among Copano Pipelines/Rocky Mountains, LLC (37.04%), Crestone Powder River LLC (37.04%), Bargath, Inc. (11.11%) and the Partnership (14.81%). Anadarko is the field and construction operator of the Fort Union gathering system. The NGLs have market access to Enterprise�� Mid-America Pipeline Company (MAPCO), which terminates at Mont Belvieu, Texas, as well as to local markets.

The 810-mile natural gas gathering system and gas processing facility is located in Sweetwater County, Wyoming. The Granger system includes eight field compression stations with 41,950 horsepower. The processing facility has a cryogenic capacity of 200 million cubic feet per day and refrigeration capacity of 100 million cubic feet per day with NGL fractionation. During 2011, Anadarko is the customer on the Granger system with approximately 54% of throughput, and the remaining throughput was primarily from five third-party shippers. The Granger system is supplied by the Moxa Arch, the Jonah field and the Pinedale anticline across, which Anadarko controls approximately 568,000 gross acres. The Granger gas gathering system has approximately 690 receipt points. The residue gas from the Granger system can be delivered to the pipelines, which includes CIG, Kern River and Mountain Gas Transportation, Inc (MGTI) pipelines through a connect with Rendezvous Pipeline Company, Northwest Pipeline Co (NWPL), Overthrust Pipeline OTTCO, a! nd Questa! r Gas Management Company (QGM).

The 67-mile Helper gathering system, located in Carbon County, Utah, built to provide gathering services for Anadarko�� coal-bed methane development of the Ferron Coal play. The Helper gathering system provides gathering, dehydration, compression and treating services for coal-bed methane gas. The Helper gathering system includes two compressor stations with a combined 14,075 horsepower and two CO2 treating facilities. Anadarko is the shipper on the Helper gathering system. The Helper Field and Cardinal Draw Fields are Anadarko-operated coal-bed methane developments on the south-western edge of the Uintah Basin that produce from the Ferron Coal play. The Helper Field covers approximately 19,000 acres as of December 31, 2011 and Cardinal Draw Field, which lies immediately to the east of Helper Field, also covers approximately 20,000 acres. The Helper gathering system delivers into the Questar Transportation Services Company�� pipeline. Questar provides transportation to regional markets in Wyoming, Colorado and Utah and also delivers into the Kern River Pipeline, which provides transportation to markets in the western United States, primarily California.

The 1,056-mile Hilight gathering system, located in Johnson, Campbell, Natrona and Converse Counties of Wyoming, built to provide low and high-pressure gathering services for the area�� conventional gas production and delivers to the Hilight plant for processing. The Hilight gathering system has 11 compressor stations with 32,263 combined horsepower. The Hilight system has a capacity of approximately 30 million cubic feet per day and utilizes a refrigeration process and provides for fractionation of the recovered NGL products into propane, butanes and natural gasoline. Gas gathered and processed through the Hilight system is from numerous third-party customers, with the nine producers providing approximately 75% of the system throughput during 2011. The Hilight gathering system serves the g! as gather! ing needs of several conventional producing fields in Johnson, Campbell, Natrona and Converse Counties. The Hilight plant delivers residue gas into its MIGC transmission line.

The MIGC system is a 256-mile interstate pipeline regulated by FERC and operating within the Powder River Basin of Wyoming. The MIGC system traverses the Powder River Basin from north to south, extending to Glenrock, Wyoming. The MIGC system is well positioned to provide transportation for the natural gas volumes received from various coal-bed methane gathering systems and conventional gas processing plants throughout the Powder River Basin. MIGC offers both forward-haul and backhaul transportation services and is certificated for 175 million cubic feet per day of firm transportation capacity. During 2011, Anadarko is the firm shipper on the MIGC system, with approximately 86% of throughput, with the remaining throughput from 11 third-party shippers. As of December 31, 2011, Anadarko has a working interest in over 1.7 million gross acres within the Powder River Basin. Anadarko�� gross acreage includes substantial undeveloped acreage positions in the expanding Big George coal play and the multiple seam coal fairway to the north of the Big George play. MIGC volumes are redelivered to the Glenrock, Wyoming Hub, which accesses the interstate pipelines, which includes CIG, Kinder Morgan Interstate Gas Transportation Company, Williston Basin Interstate Pipeline Company, and Wyoming Interstate Gas Company. Volumes are also delivered to Anadarko�� MGTC, Inc. (MGTC) intrastate pipeline, a Hinshaw pipeline that supplies local markets in Wyoming.

The 179-mile Newcastle gathering system, located in Weston and Niobrara Counties of Wyoming, was built to provide gathering services for conventional gas production in the area. The gathering system delivers into the Newcastle plant, which has gross capacity of approximately two million cubic feet per day. The plant utilizes a refrigeration process and provides for frac! tionation! of the recovered NGLs into propane and butane/gasoline mix products. The Newcastle facility is a joint venture among Black Hills Exploration and Production, Inc. (44.7%), John Paulson (5.3%) and the Partnership (50.0%). The Newcastle gathering system includes one compressor station with 560 horsepower. The Newcastle plant has an additional 2,100 horsepower for refrigeration and residue compression. Gas gathered and processed through the Newcastle system is from 12 third-party customers, with the four producers providing approximately 92% of the system throughput during 2011. The producer, Black Hills Exploration, provided approximately 62% of the throughput during 2011. The Newcastle gathering system and plant primarily service gas production from the Clareton and Finn-Shurley fields in Weston County. Propane products from the Newcastle plant are typically sold locally by truck, and the butane/gasoline mix products are transported to the Hilight plant for further fractionation. Residue gas from the Newcastle system is delivered into Anadarko�� MGTC pipeline for transport, distribution and sale.

The Platte Valley system, located in the Denver-Julesburg Basin, consists of a processing plant with current cryogenic capacity of 100 million cubic feet per day, two fractionation trains, a 1,099-mile natural gas gathering system and related equipment. The Platte Valley gathering system has 13 compressor stations with a combined 17,011 of operating horsepower. During 2011, approximately 8% of the Platte Valley system throughput was from Anadarko and the remaining throughput was from various third-party customers, the EnCana Corporation. There are 713 receipt points connected to the Platte Valley gathering system as of December 31, 2011. The system is connected to its Wattenberg gathering system. The Platte Valley system is primarily supplied by the Wattenberg field and covers portions of Adams, Arapahoe, Boulder, Broomfield, Denver, Elbert, and Weld Counties, Colorado. The Platte Valley system de! livers NG! Ls through the pipelines, which includes local markets, ONEOK Overland Pass Pipeline, and the Wattenberg Pipeline owned and operated by DCP Midstream (formerly the Buckeye Pipeline). In addition, the Platte Valley system can deliver to the CIG and Xcel Energy residue gas pipelines.

The Wattenberg gathering system is a 1,781-mile wet gas gathering system in the Denver-Julesburg Basin, north and east of Denver, Colorado, and includes six compressor stations and combined 72,579 of operating horsepower. The Fort Lupton processing plant has two trains with combined processing capacity of 105 million cubic feet per day. During 2011, Anadarko-operated production represented approximately 66% of system throughput. Approximately 29% of Wattenberg system throughput was from two third-party producers and the remaining throughput was from various third-party customers. There are 2,129 receipt points and over 5,900 wells connected to the gathering system as of December 31, 2011. The Wattenberg gathering system is primarily supplied by the Wattenberg field and covers portions of Adams, Arapahoe, Boulder, Broomfield and Weld counties. Anadarko controls approximately 762,000 gross acres in the Wattenberg field. Anadarko drilled 472 wells and completed 2,090 fracs at the Wattenberg field during 2011, and had identified 1,200 to 2,700 opportunities to increase production, including new well locations, re-fracs and recompletions. The Wattenberg gathering system has five delivery points, with the primary delivery points, which includes Anadarko�� Wattenberg processing plant, Fort Lupton processing plant, and Platte Valley processing plant.

The White Cliffs pipeline consists of a 526-mile crude oil pipeline that originates in Platteville, Colorado and terminates in Cushing, Oklahoma. It has an approximate capacity of 80,000 barrels per day. At the point of origin, it has a 100,000-barrel storage facility and a truck-loading facility with an additional 220,000 barrels of storage. The pipeline is a! joint ve! nture owned by SemCrude Pipeline LP (51%), Plains Pipeline LP (34%), Noble Energy, Inc. (5%) and the Partnership (10%). The White Cliffs pipeline has two throughput contracts with Anadarko and Noble Energy. During 2011, Anadarko was the shipper on the White Cliffs pipeline. The White Cliffs pipeline is supplied by production from the Denver-Julesburg Basin and is the only direct route from the Denver-Julesburg Basin to Cushing, Oklahoma. The White Cliffs pipeline delivery point is SemCrude�� storage facility in Cushing, Oklahoma, a major crude oil marketing center, which ultimately delivers to the mid-continent refineries.

Mid-Continent

The 1,953-mile Hugoton gathering system provides gathering service to the Hugoton field and is primarily located in Seward, Stevens, Grant and Morton Counties of Southwest Kansas and Texas County in Oklahoma. The Hugoton gathering system has 44 compressor stations with a combined 92,097 horsepower of compression. Anadarko is the customer on the Hugoton gathering system with approximately 76% of the system throughput, during 2011. During 2011, approximately 19% of the throughput on the Hugoton system was from one third-party shipper with the balance from various other third-party shippers. The Hugoton field is a natural gas fields in North America. The Hugoton gathering system is connected to DCP Midstream�� National Helium plant, which extracts NGLs and helium and delivers residue gas into the Panhandle Eastern pipeline. The system is also connected to the Satanta plant, which is owned by Pioneer Natural Resources Corporation (51%) and Anadarko (49%), for NGLs and helium processing and delivers residue gas into Kansas Gas Services and Southern Star pipeline.

East Texas

The 323-mile Dew gathering system is located in Anderson, Freestone, Leon and Robertson Counties of East Texas. The Dew gathering system has 10 compressor stations with a combined 36,175 horsepower of compression. Anadarko is the only shipper on the ! Dew gathe! ring system. As of December 31, 2011, Anadarko has approximately 833 producing wells in the Bossier play and controls approximately 122,000 gross acres in the area. The Dew gathering system has delivery points with Pinnacle Gas Treating LLC, which is the primary delivery point and is described in more detail below, and Kinder Morgan�� Tejas pipeline.

The Pinnacle gathering system includes the Partnership�� 266-mile Pinnacle gathering system and its Bethel treating plant. The Pinnacle system provides sour gas gathering and treating service in Anderson, Freestone, Leon, Limestone and Robertson Counties of East Texas. The Bethel treating plant, located in Anderson County, has total CO2 treating capacity of 502 million cubic feet per day and 20 long tons per day of sulfur treating capacity. During 2011, Anadarko was shipper on the Pinnacle gathering system with approximately 90% of system throughput and the remaining throughput on the system was from four third-party shippers. The Pinnacle gathering system provide gathering and treating services to the five-county area over, which it extends, including the Cotton Valley Lime formations, which contain concentrations of sulfur and CO2. The Pinnacle gathering system is connected to Atmos Texas pipeline, Enbridge Pipelines (East Texas) LP pipeline, Energy Transfer Fuels pipeline, Enterprise Texas Pipeline, LP�� pipeline, ETC Texas Pipeline, Ltd pipeline, and Kinder Morgan�� Tejas pipeline. These pipelines provide transportation to the Carthage, Waha and Houston Ship Channel market hubs in Texas.

West Texas

The 118-mile Haley gathering system provides gathering and dehydration services in Loving County, Texas and gathers a portion of Anadarko�� production from the Delaware Basin. During 2011, Anadarko�� production represented approximately 69% of the Haley gathering system�� throughput, and the remaining throughput is attributable to Anadarko�� partner in the Haley area. As of December 31, 2011, in the great! er Delawa! re basin, Anadarko has access to approximately 355,000 gross acres, is a portion of which is gathered by the Haley gathering system. The Haley gathering system has multiple delivery points. The primary delivery points are to the El Paso Natural Gas pipeline or the Enterprise GC, LP pipeline for delivery into Energy Transfer�� Oasis pipeline. It also delivers into Southern Union Energy Services��pipeline for further delivery into the Oasis pipeline. The pipelines at these delivery points provide transportation to both the Waha and Houston Ship Channel markets.

The Company competes with QEP Field Services Company, El Paso Midstream Group, Inc., XTO Energy, ETC Texas Pipeline, Ltd, Enbridge Pipelines (East Texas) LP, Kinder Morgan Tejas Pipeline, LP, MIGC, Thunder Creek Gas Services, Williston Basin Interstate Pipeline Company, TransCanada, Williams Field Services, Enterprise Gas Processing, LLC, Jonah Gas Gathering Company, QEP Field Services Company, Anadarko�� Delaware Basin JV Gathering LLC, Enterprise GC, LP, Targa Midstream Services LLC, Southern Union Energy Services Company, DCP Midstream, Merit Energy, ONEOK Gas Gathering Company, Pioneer Natural Resources and AKA Energy.

Advisors' Opinion:

• [By David Fickling]

  Wesfarmers Ltd. (WES), Australia�� largest private-sector employer, fell the most in more than two years in Sydney trading after it said earnings from its Target department stores would drop as much as 43 percent from a year earlier.

Top Building Product Stocks To Buy Right Now: Leucadia National Corporation(LUK)

Leucadia National Corporation, through its subsidiaries, engages in manufacturing, land based contract oil and gas drilling, gaming entertainment, real estate, medical product development, and winery operations in the United States and internationally. Its manufacturing operations include remanufacturing, manufacturing, and/or distribution dimension lumber, home center boards for retailers, pine decking, and other specialty wood products; and manufacturing and marketing lightweight plastic netting used in building and construction, erosion control, packaging, agricultural, carpet padding, filtration, and consumer products. The company?s land based contract oil and gas drilling operations include the provision of drilling services to independent oil and natural gas exploration and production companies in the Mid-Continent region of the United States, including Oklahoma, Texas, Arkansas, Louisiana, and Kansas. As of December 31, 2010, it had 38 drilling rigs. The company?s g aming entertainment operations consist of owning the Hard Rock Hotel & Casino Biloxi located in Biloxi, Mississippi, which consists of 325 rooms and suites, 1,268 slot machines, 52 table games, 6 live poker tables, 5 restaurants, and spa. Its real estate activities include investment in commercial properties, residential land development projects, and other unimproved land. The company?s medical product development operations comprise the development of MP4OX that has completed a phase II proof of concept clinical trial and is a solution of cell-free hemoglobin, administered intravenously to provide oxygen delivery to oxygen deprived tissues. In addition, Leucadia National Corporation engages in the production and sale of wines; and investment and evaluation of gasification projects to convert various types of low grade fossil fuels into energy products. The company was founded in 1854 and is based in New York, New York.

Advisors' Opinion:

• [By Michael Hooper]

  When compared with similar companies, Berkshire Hathaway carries a premium over Markel� (NYSE: MKL  ) , valued at 1.15 times book value and a 20 forward P/E ratio; and Leucadia National� (NYSE: LUK  ) , valued at 1.10 times book value and a 7.16 trailing P/E.�

Top Building Product Stocks To Buy Right Now: Wilshire Bancorp Inc.(WIBC)

Wilshire Bancorp, Inc. operates as the holding company for Wilshire State Bank that offers a range of financial products and services. It accepts various deposit products that include certificates of deposit, regular savings accounts, money market accounts, checking and negotiable order of withdrawal accounts, installment savings accounts, and individual retirement accounts. The company?s loan portfolio comprises commercial real estate and home mortgage loans, commercial business lending and trade finance, and small business administration lending, as well as consumer loans, including personal loans, auto loans, and other loans. It also provides trade finance services that include issuance and negotiation of letters of credit, handling of documentary collections, advising and negotiation of commercial letters of credit, transfer and issuance of back-to-back letters of credit, and trade finance lines of credit. In addition, the company offers Internet banking services, auto matic teller machines, and armored carrier services. It has 24 full-service branch offices in Southern California, Texas, New Jersey, and the greater New York City metropolitan area; and 6 loan production offices in Colorado, Georgia, Texas, New Jersey, and Virginia. The company was founded in 1980 and is headquartered in Los Angeles, California.

Advisors' Opinion:

• [By Rich Smith]

  Los Angeles-based Wilshire Bancorp (NASDAQ: WIBC  ) is acquiring some Korean banking customers... in New Jersey.

  On Monday, Wilshire announced that it has signed a definitive agreement to acquire�New Jersey's BankAsiana, a commercial bank�with three branches serving the Korean-American community in the New York/New Jersey market, boasting total assets of $207.3 million, total net loans of $161.2 million, and total deposits of $164.6 million.

• [By Marc Bastow]

  Los-Angeles, California-based bank holding company Wilshire Bancorp (WIBC) raised its quarterly dividend 67% to 5 cents per share, payable April 15 to shareholders of record as of March 31.
  WIBC Dividend Yield: 1.77%

Top Building Product Stocks To Buy Right Now: Alleghany Corporation(Y)

Alleghany Corporation, through its subsidiaries, engages in the property and casualty, and surety insurance business in the United States. It underwrites specialty insurance coverages in the property, umbrella/excess, general liability, directors and officers liability, professional liability lines of business, and homeowners insurance. The company also writes surety products, such as commercial surety bonds and contract surety bonds. In addition, Alleghany Corporation owns and manages improved and unimproved commercial land, and residential lots in the Sacramento, California. As of December 31, 2010, the company owned approximately 320 acres of property in various land use categories. Further, it engages in the oil and gas exploration and production business. The company was founded in 1929 and is based in New York, New York.

Advisors' Opinion:

• [By Chris Hill]

  Which investors are worth following? In this installment of MarketFoolery, our analysts talk about why they're following Cook and Bynum's Richard Cook and Dowe Bynum, Martin Capital's Frank Martin, Alleghany's (NYSE: Y  ) CEO Weston Hicks, and T. Rowe Price's (NASDAQ: TROW  ) �Preston Athey.�

Top Building Product Stocks To Buy Right Now: On Track Innovations Ltd (OTIV)

On Track Innovations Ltd. (OTI) designs, develops and markets solutions based on its secure contactless microprocessor-based smart card technology to address the needs of a range of markets. The Company�� products combine the benefits of both microprocessors and contactless cards. In addition to contactless microprocessor-based smart cards, it also sells products that are based on other card technologies. The Company has focused on the development of its technologies and its products based on its technological platform that consists of smart cards, smart card readers, software tools and secure communication technology. As of December 31, 2012, it offers three lines of solutions, each of which constitutes a complete system, as well as components (such as smart cards and readers) that we sell to original equipment manufacturers (OEMs), for incorporation into their own products. OTI�� three vertical markets include Payment Solutions, Petroleum Systems and SmartID Solutions. Advisors' Opinion:

• [By Roberto Pedone]

   

   

  One under-$10 technology player that's starting to trend within range of triggering a major breakout trade is On Track Innovations (OTIV), which designs, develops and markets contactless microprocessor-based smart card solutions to customers in Africa, Europe, the Far East, the Americas and Israel. This stock has been red hot over the last three months, with shares up a whopping 134%.

  If you take a look at the chart for On Track Innovations, you'll notice that this stock has been trending sideways and consolidating over the last month and change, with shares moving between $2.70 on the downside and $3.74 on the upside. Shares of OTIV have now started to spike higher off some near-term support at $3 a share and it's quickly moving within range of triggering a major breakout trade above the upper-end of its recent sideways trading chart pattern.

  Traders should now look for long-biased trades in OTIV if it manages to break out above its 52-week high at $3.74 a share with high volume. Look for a sustained move or close above that level with volume that hits near or above its three-month average volume of 626,538 shares. If that breakout triggers soon, then OTIV will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $4.50 to $5.50 a share.

  Traders can look to buy OTIV off weakness to anticipate that breakout and simply use a stop that sits just below some key near-term support levels at $3.20 or at $3 a share. One can also buy OTIV off strength once it starts to clear its 52-week high at $3.74 a share with volume and then simply use a stop that sits a comfortable percentage from your entry point.

• [By Markman Advisors]

  Public companies leveraging their patent portfolios, (aka "patent plays"), are getting the market's attention. Companies such as Vringo (VRNG), ParkerVision (PRKR), MGT Capital (MGT), Worlds Inc. (WDDD.OB) and others have presented trading opportunities due to their volatility while retaining the chance for a big payoff to those investors who stay the course. Yet there exist viable patent plays that are still undiscovered. Some of these so called "plays," which are not getting enough attention, are actually real companies making and selling real products or services in contrast to pure patent monetization companies. Some known examples are Single Touch Interactive (SITO.OB) and Blue Calypso (BCYP.OB). This article is focused on another one of these patent plays, On Track Innovations Ltd. (OTIV).