Cal-Maine Foods Inc Posts Higher Q3 Earnings; Shatters Estimates (CALM)

Before the opening bell on Monday morning, Cal-Maine Foods Inc (CALM) reported its third quarter earnings, posting higher revenues and earnings than last year’s same period.

CALM’s Earnings in Brief

CALM reported third quarter sales of $395.5 million, which were up from last year’s Q3 revenues of $360.4 million. Net income for the quarter came in at $42.9 million, or $1.77 per diluted share, up from last year’s earnings of $30.6 million, or $1.27 per share. Cal-Maine blew analysts’ EPS estimates of $1.41 out of the water.

CEO Commentary

CALM’s chairman, president and CEO, Dolph Baker, had the following comments: “Cal-Maine Foods delivered a solid performance for the third quarter of fiscal 2014 with our net sales up 10 percent over the same period last year. The higher sales reflect both improved volumes through the holiday season and higher average selling prices compared with the third quarter of fiscal 2013. Consumer demand for shell eggs has been strong at the retail level for both generic and specialty eggs, supported by below average temperatures across the country. In addition, the egg products segment of the industry has continued to experience strong demand due to the introduction of breakfast items at many quick serve restaurants, as well as increased exports.

CALM’s Dividend

Cal-Maine has been inconsistent with its dividend payments in the past, having paid its most recent dividend of 36 cents on February 13. Before that the company paid a dividend of 7 cents in November, 2013. It’s hard to predict what CALM’s next payout will be, but judging from its history of paying out higher dividends in April/May versus February, and due to its positive earnings release, CALM is likely to declare a dividend above 36 cents in the coming month.

Stock Performance

CALM stock was inactive in pre-market trading. YTD, the company’s stock is up 0.19%.

CALM Dividend Snapshot

As of 8:30am on March 31, 2014

Click here to see the complete history of CALM dividends.

Why I Finally Added Apple Stock to My Portfolio

Over the past six months, to say Apple (NASDAQ: AAPL  ) stock has fallen from grace seems a massive understatement. To be sure, take a look at Apple's dismal performance next to the respectable gains offered by the S&P 500 over the same interval:

Source: AAPL Total Return Price data by YCharts.

Ouch! That's nearly 43% of frustrating underperformance turned in by a company, which, curiously enough, managed to earn nearly $42 billion (yep, with a "b") on almost $165 billion in revenue during 2012 alone.

Why buy now?
So why, oh why, did I buy shares of Apple in my personal portfolio for the first time last week? After all, truly Foolish investors know you should never buy a stock simply because it fell, especially since much of the time those stocks have been punished for a reason.

Even so, we should also recognize short-term fluctuations are wildly unpredictable. So let's zoom out a little, shall we?

Take a look at what Apple has done over the past five years relative to the S&P 500:

Source: AAPL Total Return Price data by YCharts.

Sure, the index didn't do half bad by gaining nearly 34% over the last half decade, but the fact remains that Apple has absolutely crushed it over the longer term by nearly tripling investors' money over the same period.

Even still, Apple's share price to date doesn't mesh with its ever-increasing levels of profitability. For example, check out how quickly the company has grown its revenue, book value, and diluted earnings per share since then:

Source: AAPL EPS Diluted TTM data by YCharts.

So what's the problem? For one, investors certainly didn't take too kindly to Apple's earnings per share leveling off toward the end of the above chart, and that largely resulted in the aforementioned mass exodus from the stock of a company that could formerly do no wrong. This should have come as little surprise, though, when we consider the mathematical impossibility of any company indefinitely keeping up that breakneck pace of growth.

However, thanks to the market's manic nature, I'm convinced the sell-off in Apple stock over the past several months has been ridiculously overblown. As it stands, shares of Apple currently trade for a mouth-watering 9.7 times trailing earnings and just 8.7 times forward estimates. In addition, the company boasted an incredible $137 billion in cash and investments on its balance sheet with no debt at the end of the most recent quarter. If that weren't enough, Apple shareholders can also look forward to collecting a 2.5% dividend, which amounts to a payout ratio of just 12%.

Moving forward
With this in mind, who's to say Apple will be able to maintain its incredible levels profitability from here on out? And what's to stop Android-based competitors from the likes of Samsung and Google (NASDAQ: GOOG  ) from eating Apple's lunch over the long term? For instance, as I pointed out in February, Android-powered smartphone shipments from Samsung have easily outpaced Apple in the global market recently, and Apple has experienced its fair share of challenges getting its higher-priced devices to gain traction in key emerging markets like China.

Image source: Apple. 

Even so, it's easy to forget despite selling fewer phones than Samsung, Apple still managed to nab more than 70% of all smartphone profits last year.

In China, as fellow Fool Chris Neiger pointed out recently, Apple has plenty of room to correct its course in the region when we note its devices aren't even available on China's largest mobile network in China Mobile (NYSE: CHL  ) . Not yet, anyway.

Furthermore, the bear case also largely ignores that Apple is due to refresh its iPhone line in the near future, and it's a safe bet Cupertino has its massive eyes on the untapped growth potential for new, innovative products down the road. Possible imminent contenders include gadgets such as an iWatch, iTV, and perhaps even a number of devices featuring game-changing flexible displays.

In the end, while the recent pullback admittedly made my decision easier, there's just too much to like about Apple's business over the long haul for me not to love it from an investment standpoint. And that, my fellow Fools, is why Apple stock will remain one of my personal holdings for the foreseeable future.

Of course, I also know there is a debate raging as to whether Apple remains a buy. If you'd still like to learn more, the Motley Fool's senior technology analyst and managing bureau chief, Eric Bleeker, is prepared to fill you in on both reasons to buy and reasons to sell Apple and the opportunities left for the company (and your portfolio) going forward. To get instant access to his latest thinking on Apple, simply click here now.

Get Ready for Microsoft's 7-Inch Surface

Smaller tablets are all the rage these days. Tablets with displays of 7 inches to 8 inches are turning out to be the sweet spot with consumers, balancing mobility and usability while carrying lower price points relative to larger tablets with displays of 9 inches to 10 inches.

Amazon.com (NASDAQ: AMZN  ) was the first to show the market the way, with its 7-inch Kindle Fire being the first mover in the smaller-sized segment. Google (NASDAQ: GOOG  ) followed suit nearly a year later with the Nexus 7. Even Apple (NASDAQ: AAPL  ) has come around, launching its iPad Mini late last year, which is quickly eating into full-sized iPad sales.

Now Microsoft (NASDAQ: MSFT  ) is preparing to get in the 7-inch game, according to a recent report from The Wall Street Journal. Insiders say that a 7-inch Surface is set to enter production later this year, which is a relatively recent development since last year Microsoft had no plans for such a device. The WSJ report is but the latest piece of evidence pointing toward Microsoft's inevitable move downmarket.

Not only has the software giant been incentivizing OEMs to explore smaller touchscreen devices through a series of discounts and price cuts, but also Microsoft's upcoming Windows 8.1 update (code-named "Blue") will include support for 7-inch tablets.

The company has also tweaked its guidelines for Windows certification to a similar effect, reducing the minimum supported resolution. The company said the change was not meant to encourage OEMs to use lower resolutions, but instead was to allow them to explore "designs for certain markets."

In doing so, the company also seemingly acknowledged that its choice of a 16:9 aspect ratio may have been misguided, since using Surface in portrait mode is comical at best and downright awkward at worst. Microsoft is opening the door to a 4:3 aspect ratio, which is what Apple uses in its iPads with much success (Amazon and Google both use 16:10).

Even Amazon is having a hard time selling its 8.9-inch Kindle Fire HD. The e-tailer just got aggressive with that device's pricing, and the price drop presumably isn't because Amazon was selling so many of them.

Microsoft has no choice if it hopes for any semblance of tablet success. A 7-inch Surface is coming.

It's been a frustrating path for Microsoft investors, who've watched the company fail to capitalize on the incredible growth in mobile over the past decade. However, with the release of its own tablet, along with the widely anticipated Windows 8 operating system, the company is looking to make a splash in this booming market. In this brand-new premium report on Microsoft, our analyst explains that while the opportunity is huge, the challenges are many. He's also providing regular updates as key events occur, so make sure to claim a copy of this report now by clicking here.

3 FTSE Shares Hitting New Highs

LONDON -- The FTSE 100 (FTSEINDICES: ^FTSE  ) has been off its highs for the past month, having set a new five-year record of 6,534 points on March 12. In April it even dipped back below the 6,300 level -- but the last couple of days have shown some recovery, with the index of top U.K. stocks climbing back to 6,401 as of 10 a.m. EDT today.

But if the FTSE isn't setting new records, there are plenty of individual companies that are. Here are three.

GlaxoSmithKline (LSE: GSK  ) (NYSE: GSK  )
GlaxoSmithKline just keeps on chugging. It reached yet another 52-week record of 1,563.5 pence today, though it's currently back a bit to 1,558 pence. The shares have had a cracking year so far, already up 16% since the start of the January, which is pretty good going for a 76 billion pound FTSE 100 giant.

But even after that rise, current forecasts still only put the shares on an undemanding forward P/E of 13, with analysts predicting a full-year dividend yield of about 5%. I'm happy to be holding GlaxoSmithKline shares in the Fool's Beginners' Portfolio.

SSE (LSE: SSE  )
Electricity supplier SSE is flying as well, ending yesterday on a 52-week closing high of 1,535 pence after setting an intraday record of 1,547 pence during the afternoon. The shares are down slightly today to 1,523 pence, but that's still a rise of 15% over the past 12 months -- and it comes on top of a regular annual dividend yield of about 5.5% to 6% per year.

While dividend cover might not be the strongest in the business, analysts seem pretty much unanimous in expecting a payment of about 84 pence for the year to March 31. On today's price, that would represent a yield of 5.5%. Full-year results are due on May 22.

Persimmon (LSE: PSN  )
Also a Beginners' Portfolio constituent, homebuilder Persimmon is doing well, rising to a 52-week peak of 1,116 pence this morning before falling back a few pennies to 1,108 pence. This year will see a 75 pence per-share special dividend paid as part of the firm's plan to return cash, but that should be it until a 95 pence payment scheduled for 2015 -- and that averages out to an annual yield of 5.1% on the current price.

We should be getting our next performance update from Persimmon on April 18.

If you're looking for high-performing top-drawer shares that should take you all the way to a comfortable retirement, I recommend the Fool's special new report detailing five blue-chip shares. They'll be familiar names to many, and they've already provided investors with decades of profits. But the report will only be available for a limited period, so click here to get your hands on these great ideas -- they could set you on the road to long-term riches.

Apple's Not Innovating Fast Enough

It's been six months since the last major product announcement from Apple (NASDAQ: AAPL  ) , and the tech giant is allowing competitors to catch-up. Google's (NASDAQ: GOOG  ) Android, Samsung's Galaxy S4, and even Microsoft's (NASDAQ: MSFT  ) Windows Phone 8 have had time to improve products while Apple has largely sat on the sidelines. Erin Miller sat down with Travis Hoium to see what Apple needs to do to excite consumers and investors again.

There's no doubt that Apple is at the center of technology's largest revolution ever and that longtime shareholders have been handsomely rewarded, with more than 1,000% gains. However, there is a debate raging as to whether Apple remains a buy. The Motley Fool's senior technology analyst and managing bureau chief, Eric Bleeker, is prepared to fill you in on both reasons to buy and reasons to sell Apple and what opportunities are left for the company (and your portfolio) going forward. To get instant access to his latest thinking on Apple, simply click here now.

Why the Average McDonald's Makes Twice as Much as Burger King

Alamy McDonald's (MCD) may recently have struggled to lure customers, but it still does far more business at each location than rival burger chains. The average McDonald's restaurant in the U.S. drew $2.6 million in revenue last year. Average sales for No. 2 chain Burger King (BKW): $1.2 million, according to data from its largest franchisee, Carrols Restaurant Group (TAST). What accounts for this more-than-a-million gap? "Everything from marketing and site selection to product initiatives and franchisee selection have been historical factors," said Nick Setyan, vice president in charge of equity research at Wedbush Securities, in an email. Here are four factors that drive higher sales volumes at McDonald's: 1. McDonald's gets more customers during off-peak hours. Look no further than the strength of its breakfast business relative that of Burger King, says Darren Tristano, executive vice president at restaurant consultancy Technomic. Egg McMuffin is part of the fast-food vocabulary in a way Burger King can't match. And beverage and snack offerings such as McCafe and wraps have helped increase McDonald's sales between meals. The dramatic impact from off-peak business explains why chains such as Taco Bell (YUM) are entering the battle for morning customers, while others such as Starbucks (SBUX) are seeking more afternoon and evening business. 2. The power of the Happy Meal. McDonald's has the largest share of kids meal sales in the fast-food industry and gets about 10 percent of total sales from Happy Meals, the most commonly advertised child-oriented fast-food item on television. Burger King, meanwhile, is still trying to win back "parties with kids and seniors and women," said Josh Kobza, Burger King's chief financial officer, at a conference last year. One way to do that: "We got rid of the creepy king character that tended to scare away women and children." 3. McDonald's has an edge on efficiency. Despite recent operational challenges at McDonald's, which have slowed down service, it is still more efficient. Its drive-through service can handle more cars at peak times, Tristano says, and McDonald's restaurants are adding a third service window to get customers through even faster. The average service time at McDonald's drive-throughs is 189.49 seconds, compared to 198.48 at Burger King, according to QSR Magazine. Drive-through service is important: Burger King franchisee Carrols gets 65 percent of its sales from the drive-through. 4. More marketing dollars. McDonald's spends a lot more on marketing than competitors, as Tristano points out. Its advertising costs in 2012 were $787.5 million vs. Burger King's $48.3 million, and the gap widened last year when Burger King itself spent only a few million on advertising in order to focus on equipment updates. In its 10-K submission, Burger King said it expects to spend less on advertising until 2016; the company declined to comment for this story. -.

Tucked away at the McDonald's C.O.B. — or Campus Office Building — is the test kitchen, where the fast food chain comes up with all sorts of products.

Top 5 Defensive Companies To Buy For 2014

It may be time to go on the offensive on the defensive consumer staples sector, as the charts suggest a minimum upside target that’s 5% above current levels, and potentially a lot more.

Robert Sluymer, managing director of U.S. technical research at RBC Capital Markets, recommends investors “increase exposure” to the sector, because the SPDR Consumer Staples Select Sector exchange-traded fund (XLP) has produced bullish breakouts on multiple technical fronts.

1) The XLP has broken through the top of a “rectangle” consolidation pattern. The XLP had been stuck within a range of $39 to $42 since April, with multiple tests of the upper and lower boundaries. The XLP was up 0.7% at $42.85 midday Tuesday, after running up 1.3% on Monday.

Mr. Sluymer said he’s also encouraged that the XLP’s rally started from the 200-day moving average, after multiple failures earlier in the month to get below that longer-term trend proxy.

Top 5 Defensive Companies To Buy For 2014: Carter's Inc.(CRI)

Carter's, Inc., together with its subsidiaries, designs, sources, and markets branded children?s wear. The company provides products under the Carter?s, Child of Mine, Just One You, Precious Firsts, OshKosh, and related brand names. Its Carter?s brand baby products include bodysuits, pants, undershirts, towels, washcloths, receiving blankets, layette gowns, bibs, caps, and booties; playclothes products consist of knit and woven cotton apparel; sleepwear products comprise pajamas and blanket sleepers; and other products consist of bedding, outerwear, swimwear, shoes, socks, diaper bags, gift sets, toys, and hair accessories. The company also provides playclothes products, including denim apparel products, overalls, woven bottoms, knit tops, and playclothes products for sizes newborn to 12 under the OshKosh brand. In addition, it offers baby, sleepwear, outerwear, shoes, hosiery, and accessories under the OshKosh brand. The company sells its products in department stores, national chains, and specialty retailers, as well as through its Carter?s and OshKosh retail stores; and online at carters.com and oshkoshbgosh.com. As of December 31, 2011, it operated 359 Carter?s and 170 OshKosh outlet and brand retail stores in the United States; and 65 retail stores in Canada. The company was founded in 1865 and is headquartered in Atlanta, Georgia.

Advisors' Opinion:

• [By AnnaLisa Kraft]

  Carter's (NYSE: CRI  ) , the branded marketer of baby and children's wear, is facing the headwinds of declining birthrates in the US and Canada. In the US, the crude birth rate (births per 1,000 people) has declined to levels not seen since the Great Depression: down 7% plus since 2007.Worldwide, the crude birth rate is expected to decline from the early 1950's 37.2 births to 13.4.

Top 5 Defensive Companies To Buy For 2014: Sharp Corp (SRP)

Sharp Corporation is a Japan-based company mainly engaged in the manufacture and sale of electric telecommunication, electric and electronic equipment. The Company operates in two business segments. The Electronics Equipment segment offers audio and video (AV) and communication products, including liquid crystal color televisions, projectors and various telephones; health and environmental equipment, including refrigerators, microwaves and air conditioners, as well as information equipment, such as handy terminal equipment, electronic registers, information displays and copy machines. The Electronic Component segment provides liquid related products such as liquid crystal display modules, solar cells, as well as other electronic devices, such as parts for satellite broadcasting, regulators and optical sensors. The Company withdrawed from solar battery production in United Kingdom by end of Feb. 2014. Advisors' Opinion:

• [By Sofia Horta e Costa]

  Vivendi SA climbed 2.7 percent after posting better-than-estimated third-quarter profit and saying it plans to spin off its French phone carrier SFR by July 2014. Serco Group Plc (SRP) increased 1.7 percent as UBS AG upgraded the stock. Safran SA (SAF) lost 3.2 percent as its largest shareholder sold a stake.

Best Medical Stocks To Invest In 2014: MFS Special Value Trust (MFV)

MFS Special Value Trust (the fund) is a closed-end fund and maintains a portfolio that includes investments in fixed income and equity securities. During the fiscal year ended October 31, 2007, the MFS Special Value Trust provided a total return of 5.11%, at net asset value. The fund's investment objective is to seek high current income, but may also consider capital appreciation.

MFS Special Value Trust normally invests the fund's assets primarily in debt instruments. MFS Special Value Trust normally invests the fund's assets in United States Government securities, foreign government securities, mortgage backed and other asset-backed securities of United States and foreign issuers, corporate bonds of United States and foreign issuers, debt instruments of issuers located in emerging market countries, and equity securities. MFS Special Value Trust�� investment advisor is Massachusetts Financial Services Company.

Advisors' Opinion:

• [By Dividends4Life]

  According to a Gabelli Funds report, managed distribution policies offer several advantages, including:1. Lower difference between the fund�� market price and its NAV per share.2. Provides support during periods when the stock market is in a decline.3. Provides a measurable performance target for the investment adviser.Below are several high-yield funds from CEFA that have a managed distribution policy (yields as of December 16):Aberdeen Australia Eqty (IAF)- Distribution Yield: 10.4%- Income Yield: 3.46%Bexil Advisers LLC� (DNI)- Distribution Yield: 11.1%- Income Yield: 3.56%BlackRock En Capital&Inc (CII)- Distribution Yield: 8.78%- Income Yield: 2.34%Cornerstone Strat Value (CLM)- Distribution Yield: 18.77%- Income Yield: 1.83%Cornerstone Total Return (CRF)- Distribution Yield: 19.10%- Income Yield: 0.85%Delaware Inv Div & Inc (DDF)- Distribution Yield: 6.70%- Income Yield: 5.26%Gabelli Equity Trust (GAB)- Distribution Yield: 7.58%- Income Yield: 1.54%Gabelli Utility Trust (GUT)- Distribution Yield: 9.45%- Income Yield: 2.84%MFS Special Value Trust (MFV)- Distribution Yield: 9.60%- Income Yield: 5.73%Nuveen Tx-Adv TR Strat (JTA)- Distribution Yield: 6.70%- Income Yield: 3.12%TCW Strategic Income (TSI)- Distribution Yield: 10.54%- Income Yield: 7.88%Zweig Total Return (ZTR)- Distribution Yield: 7.27%- Income Yield: 1.95%As noted in the Gabelli report, a managed distribution policy may create confusion regarding the true current yield since the reported yield includes the return of capital portion. You can see the disparity above between the income yield and the distribution (reported) yield.If you are looking for a sustainable and growing dividend, you may want to consider some blue-chip dividend stocks such as these with a Free Cash Flow Payout less than 50%, 50+ years of consecutive dividend increases and a 2%+ yield:3M Co. (MMM) is a diversified global company provides enhanced product functionality in electronics, health care, industrial, consumer

Top 5 Defensive Companies To Buy For 2014: Unit Corporation(UNT)

Unit Corporation, together with its subsidiaries, engages in the contract drilling, oil and natural gas, and mid-stream businesses in the United States. The company?s Contract Drilling segment engages in land contract drilling of onshore oil and natural gas wells for oil and natural gas companies in Oklahoma, Texas, Louisiana, Wyoming, Colorado, Utah, Montana, and North Dakota. Its Oil and Natural Gas segment is involved in the acquisition, exploration, development, and production of oil and natural gas properties located primarily in Oklahoma, Texas, Louisiana, and North Dakota, as well as in Arkansas, New Mexico, Wyoming, Montana, Alabama, Kansas, Mississippi, Michigan, Colorado, Pennsylvania, and a small portion in Canada. As of December 31, 2011, this segment had approximately 121 gross proved undeveloped wells. The company?s Mid-Stream segment buys, sells, gathers, processes, and treats natural gas. It operates 3 natural gas treatment plants, 10 operating processing plants, 35 active gathering systems, and 934 miles of pipeline in Oklahoma, Texas, Kansas, Pennsylvania, and West Virginia. The company operates a fleet of 127 drilling rigs. Unit Corporation was founded in 1963 and is based in Tulsa, Oklahoma.

Advisors' Opinion:

• [By Robert Rapier]

  Having said that, I can’t find anything in the article archives about Unit Corp. (NYSE: UNT). Unit describes itself as a diversified energy company engaged in the exploration for and production of oil and natural gas, the acquisition of producing oil and natural gas properties, the contract drilling of onshore oil and natural gas wells, and the gathering and processing of natural gas.

Top 5 Defensive Companies To Buy For 2014: C&J Energy Services Inc (CJES)

C&J Energy Services, Inc., incorporated on December 15, 2010, is a provider of hydraulic fracturing, coiled tubing, wireline and other complementary services with a focus on complex, technically demanding well completions. The Company also manufactures and repairs equipment to fulfill its internal needs and for third-party companies in the energy services industry. The Company operates in three reportable segments: Stimulation and Well Intervention Services, Wireline Services and Equipment Manufacturing.

The Company provides hydraulic fracturing coiled tubing and related well intervention services through its Stimulation and Well Intervention Services segment to oil and natural gas exploration and production companies. On June 7, 2012, the Company acquired Casedhole Holdings, Inc. and its operating subsidiaries, including Casedhole Solutions, Inc.

Stimulation and Well Intervention Services

The Company's Stimulation and Well Intervention Services segment provides hydraulic fracturing and coiled tubing and other well intervention services, with a focus on complex, technically demanding well completions. The Company's customers use the Company's hydraulic fracturing services to enhance the production of oil and natural gas from formations with low permeability, which restricts the natural flow of hydrocarbons. Hydraulic fracturing involves pumping a fluid down a well casing or tubing at sufficient pressure to cause the underground producing formation to fracture, allowing the oil or natural gas to flow more freely. The Company's engineering staff also provides technical evaluation, job design and fluid recommendations for the Company's customers as an integral element of its fracturing service. The Company's engineering staff also provides technical evaluation, job design and fluid recommendations for the Company's customers as an integral element of its fracturing service.

Wireline Services

The Company's Wireline Services segment p! rovides cased-hole wireline and other complementary services. Its services includes logging, perforating, pipe recovery, pressure testing and pumpdown services, which are critical throughout a well's life cycle.

Equipment Manufacturing

The Company's Equipment Manufacturing segment constructs oilfield equipment, including hydraulic fracturing pumps, coiled tubing units, pressure pumping units and other equipment for the Company's Stimulation and Well Intervention Services and Wireline Services segments as well as for third-party customers in the energy services industry. This segment also provides equipment repair services and oilfield parts and supplies to the energy services industry and to meet the Company's own internal needs.

The Company competes with Halliburton, Schlumberger, Baker Hughes, Weatherford International, RPC, Inc., Pumpco, an affiliate of Superior Energy Services, Frac Tech, Stewart & Stevenson, Enerflow Industries Inc., United Engines Manufacturing, Dragon Products and National Oilwell Varco, Inc.

Advisors' Opinion:

• [By Matt DiLallo]

  C&J Energy Services (NYSE: CJES  )
  One of the more interesting purchases this quarter is the $7.4 million Soros poured into C&J Energy Services. The oilfield service company specializes in complex well completions, making it an important company for extracting ever-harder-to-reach oil and gas. With operations spanning the most active shale plays, an investment in C&J is one that benefits as oil and gas companies drill more wells using even more complex hydraulic fracturing techniques.

Best route to venture capital? Be a man

If you're old enough to remember the 1980s or like watching vintage TV on Hulu, think back to a detective show called Remington Steele.

In that series, a talented female private eye set up her own detective firm, only to find that clients wouldn't hire a woman. To combat this sexism, she recruited a handsome front man — Pierce Brosnan before he became James Bond — to play the part of her boss.

Of course, she still ran the company and did the work.

If you're a female entrepreneur looking for venture capital, a new study suggests you may want to find your own Remington Steele — a good-looking guy to be your front man — at least if you want male investors to finance your company.

This ground-breaking research — conducted by scholars from the Massachusetts Institute of Technology, Harvard and the Wharton School of Business at the University of Pennsylvania and published in the Feb. 20 edition of Proceedings of the National Academy of Sciences of the United States — supports what women entrepreneurs have long felt, that they have a much harder time getting money just because they're female.

COLUMN: Women get into the start-up game
STORY: Women make mark in venture capital

Here's what authors Alison Wood Brooks, Laura Huangb, Sarah Wood Kearney and Fiona E. Murray, and editor Nancy Hopkins concluded:

"We find that investors prefer entrepreneurial pitches presented by male entrepreneurs compared with pitches presented by female entrepreneurs, even when the content of the pitch is the same," they wrote. "This effect is moderated by male physical attractiveness: attractive males are particularly persuasive, whereas physical attractiveness does not matter among female entrepreneurs."

Independent, entrepreneurial women like Stephanie Zimbalist in 'Remington Steele' from the 1980s, still don't excite venture capitalists a generation later.(Photo: The Kobal Collection, NBC-TV)

First, the authors looked at the results of real business-plan competitions and found that males were 60% more likely to win.

OK, but the reasons for that could be numerous. So, they ran controlled studies.

To begin, the researchers selected winning business-plan pitches and presented them to individuals with financial incentives to choose the most promising business concepts. The "pitch" consisted of a video presentation with a voiceover narration.

Randomly, these presentations used either a female voice or a male voice to present the exact same script. The finding? 68.33% chose the pitch from a male even though the business presentation was otherwise identical.

They then took their research a step farther. They wanted to see if both gender and attractiveness affected financing decisions.

So the authors added a photo to the voiceover presentation. They had four types of photos, attractive and less attractive males and attractive and less attractive females.

Once again, males were more likely to receive money and their pitches were considered more persuasive.

Attractive males were significantly more likely to be seen as investment worthy than less attractive males. But even less attractive males did quite a bit better than women, attractive or not.

These results are powerful because they reflect the reality that such a small percentage of women-led companies receive professional venture financing — only 13% of venture capital investments have a woman among the founding team.

STORY: Female-led start-ups on upswing in Silicon Valley
OPINION: Venture capitalists, it's time to invest in women

And that has nothing to do with the nature of the business. I've seen venture capitalists invest in companie! s that sp! ecialize in retail or education or other areas with predominantly female customers, yet they have no females in leadership positions or on the board.

What can women entrepreneurs do?

A woman may be the brains behind an organization, but having a handsome guy like Pierce Brosnan, with Stephanie Zimbalist in a 1982 photo for 'Remington Steele,' attracts the cash, a study shows.(Photo: NBC)

1. Find women investors. Women-led angel investor groups and early stage venture funds are cropping up all over the country.

Experienced, successful women entrepreneurs have realized a lot of money can be made investing in women-led companies. Some of the groups include Springboard, Belle Capital and Golden Seeds.

2. Start lean. Today, you can start a company with far less money.

That means you don't need to raise as much, and you're a better candidate for financing from friends and family.

3. Try crowdfunding. It's a new source of money for start-ups. If you've got a cool gizmo or product, this might be a route to go.

4. Think big. One problem women often have when pitching is that their vision isn't as big as many men — and investors want to see the possibility of big returns.

5. Join with other women entrepreneurs. Groups like Women 2.0 help women entrepreneurs succeed.

Finally, forget Remington Steele. Make it on your own.

But do diversify your team because both men and women build better companies when they have a mix of ideas, backgrounds, genders, ages and ethnicities.

Tweets about "#6WkStartup"

Rhonda Abrams is president of The Planning Shop and publisher of books for entrepreneurs. Her most recent book is Ent! repreneur! ship: A Real-World Approach. Register for Rhonda's free newsletter at PlanningShop.com. Twitter: @RhondaAbrams. Facebook: facebook.com/RhondaAbramsSmallBusiness. Copyright Rhonda Abrams 2014.

3 Stocks Spiking on Big Volume

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

>>5 Stocks With Big Insider Buying

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

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

>>5 Hated Earnings Stocks You Should Love

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

MEI Pharma

MEI Pharma (MEIP), a development-stage oncology company, focuses on the clinical development of therapeutics for the treatment of cancer. This stock closed up 3% at $10 in Wednesday's trading session.

Wednesday's Volume: 190,000

Three-Month Average Volume: 136,021

Volume % Change: 50%

From a technical perspective, MEIP spiked notably higher here with above-average volume. This stock recently pulled back from its high of $11.63 to its low of $9.15. That low corresponded with MEIP's 50-day moving average and since that pullback shares of MEIP have started to rebound a bit. That rebound is starting to push shares of MEIP within range of triggering a near-term breakout trade. That trade will hit if MEIP manages to take out some near-term overhead resistance levels at $10.53 to $10.75 with high volume.

Traders should now look for long-biased trades in MEIP as long as it's trending above $9.50 or above its 50-day moving average of $9.05 and then once it sustains a move or close above those breakout levels with volume that hits near or above 136,021 shares. If that breakout hits soon, then MEIP will set up to re-test or possibly take out its next major overhead resistance levels at $11.63 to its 52-week high of $12.45.

Netflix

Netflix (NFLX) provides Internet television network service that enables subscribers to stream TV shows and movies directly on TVs, computers and mobile devices in the U.S. and internationally. This stock closed up 0.39% to $372.28 in Wednesday's trading session.

Wednesday's Volume: 3.47 million

Three-Month Average Volume: 2.92 million

Volume % Change: 50%

From a technical perspective, NFLX bounced modestly higher here right above its recent low of $365.75 with above-average volume. This stock has been absolutely destroyed by the sellers over the last few weeks, with shares plunging sharply lower from its high of $458 to its low of $365.75. During that move, shares of NFLX have been consistently making lower highs and lower lows, which is bearish technical price action. That move has now pushed shares of NFLX into oversold territory, since its current relative strength index reading is 24. Oversold can always get more oversold, but it's also an area where a stock can rebound sharply higher from.

Traders should now look for long-biased trades in NFLX as long as it's trending above its recent low of $365.75 and then once it sustains a move or close above Wednesday's high of $377.45 to more resistance at $384.93 with volume that hits near or above 2.92 million shares. If we get that move soon, then NFLX could rebound higher towards $400 or even its 50-day moving average of $412.07.

Baxter International

Baxter International (BAX) develops, manufactures and markets products for people with hemophilia, immune disorders, infectious diseases, kidney diseases, trauma and other chronic and acute medical conditions. This stock closed up 2.4% at $70.08 in Wednesday's trading session.

Wednesday's Volume: 8.16 million

Three-Month Average Volume: 3.11 million

Volume % Change: 146%

From a technical perspective, BAX ripped higher here right above its 200-day moving average of $68.12 with heavy upside volume. This spike pushed shares of BAX into breakout territory, after the stock took out some near-term overhead resistance levels at $68.64 to $69.65. Shares of BAX also flirted with some more resistance at $70.24 before the stock closed just below that level at $70.08. Market players should now look for a continuation move higher in the short-term if BAX manages to take out Wednesday's high of $70.75 with strong volume.

Traders should now look for long-biased trades in BAX as long as it's trending above Wednesday's low of $68.39 or above its 50-day at $68.09 and then once it sustains a move or close above $70.75 with volume that's near or above 3.11 million shares. If we get that move soon, then BAX will set up to re-test or possibly take out its next major overhead resistance levels at $72 to $73.01, or even its 52-week high at $74.60. Any high-volume move above $74.60 will then give BAX a chance to tag $80.

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

-- Written by Roberto Pedone in Delafield, Wis.

RELATED LINKS:

>>3 Hot Stocks to Trade (or Not)

>>Beat the S&P With the Stocks Everyone Else Hates

>>5 Big Tech 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.

Public Poll – Will You Buy The Ally Financial IPO?

Ally Financial Inc. is soon to become a public company again. The taxpayer has a stake here in this auto lender, considering that the U.S. government stake will be selling the majority of its stake held since the bailout. The proposed sale of stock will be for up to $3.06 billion if the full number of shares (including the overallotment option) are sold.

If the IPO market holds up and if the pricing comes at the indicated levels, the U.S. Treasury will have turned a profit. The U.S. Treasury is offering 95,000,000 shares of common stock in this offering, currently pegged between $25.00 and $28.00 per share. Ally’s last amended filing used 481,500,794 shares outstanding for calculation purposes.

Ally was bailed out for roughly $17 billion, and taxpayers have already recovered over $15 billion prior to the IPO. This new $3 billion or so will put the Treasury in the black on the bailout.

All pondering and historic bias aside, the real question is simple to ask but may not be a simple answer – As of now, would you be willing to buy Ally shares at the current terms?

For starters, the Treasury’s pre-IPO stake is almost 37%, but after the IPO it will be about 14% if all shares are sold in the offering.

Ally originally filed in early 2011 to come public, but market conditions got in the way. Now it looks as though the offering is going to make it, so long as market conditions allow it.

The underwriting group is massive. Ally’s joint global coordinators and joint book-running managers are Citigroup, Goldman Sachs, Morgan Stanley and Barclays. Its joint book-running managers are listed as BofA Merrill Lynch, Deutsche Bank Securities, and J.P. Morgan. The list of co-managers seems to include almost every firm you can think of: Sandler O'Neill, Keefe Bruyette & Woods, Credit Suisse, Stifel, and literally ten other firms.

Outside of the U.S. Treasury, activist Dan Loeb owns a 9.5% stake via his Third Point LLC. Affiliates of private equity firm Cerberus Capital Management own another 8.6% stake. Both Third Point and Cerberus are not selling in the offering.

Ally is one of the largest standalone auto finance houses operating with its Dealer Financial Services, for both wholesale and retail. It counts itself as the 19th largest U.S. bank holding company based on total assets. The company’s SEC filing shows that its assets were $151.2 billion of total assets and $52.9 billion of bank deposits as of December 31, 2013. At December 31, 2013, Ally had a Tier 1 capital ratio of 11.8% and a Tier 1 common ratio of 8.8%.

Net income was $361 million in 2013, down from $1.196 billion in 2012. Total net revenue was $4.263 billion in 2013, down from $4.465 billion in 2012. This was from Ally’s 11th amended filing and we have a poll for you to take below.

Take Our Poll

3 Reasons a Roth IRA Might Be Wrong for You

Alamy Many financial advisers believe that Roth individual retirement accounts are the best way available for you to save for retirement. With income tax rates having gone up in 2013 and with further increases potentially on the horizon, a retirement account that promises tax-free treatment not only while your money is invested within the account but also when you decide to make distributions is extremely valuable. Yet choosing a Roth IRA over other retirement-saving choices comes at a cost -- and for many taxpayers, it's too high a price to pay. Your Tax Rate Isn't Going to Get Any Higher The general idea behind a Roth IRA is that by making after-tax contributions, you get the benefit of tax-free growth throughout your career and tax-free withdrawals in retirement. But the tradeoff is that you give up the potential deduction you might be eligible to receive by making contributions to a traditional IRA or 401(k) account. Whether that tradeoff is worth it depends on several factors, but the most important compares your current tax rate with what you expect to pay after you retire. If you're in the prime of your career and have earnings that put you in the maximum tax bracket, the value of getting a tax deduction on traditional retirement-account contributions is extremely high. So using a Roth and giving up that deduction doesn't make much sense. For those who are just getting started and are in low tax brackets, it's a lot easier to justify giving up a smaller deduction now in exchange for big tax savings later. Your Employer Gives You a Better Deal Roth IRAs don't offer one thing that many workers get from their 401(k) plans: matching contributions from their employers. If you only have a limited amount to save for retirement, your first priority should generally be to contribute to your workplace 401(k) at least to maximize your employer match. After you've claimed all the free money your employer is willing to give, then it can be smart to look at a Roth as a secondary option. But with many employers offering matching contributions when you contribute as much as 6 percent or more of your salary, doing both 401(k) and a Roth might be more than you can afford. You're Scared of Washington What the tax laws give, tax law changes can take away. For instance, the latest administration budget proposal would set maximums on the amount of tax-favored retirement savings that you can set aside, as well as other provisions that would impose required minimum distributions on Roth IRAs for the first time. Some analysts worry that more substantive changes could be next, including potentially adding a surtax to Roth IRA distributions to effectively remove their tax-free status. The advantage of traditional IRAs is that you grab your deduction up front, making it impossible for lawmakers to take it away later. Although most believe that the chances of major Roth IRA changes are remote, those who are risk-averse should consider that possibility in choosing their retirement vehicle.

Gas Drillers Getting No Respect

My Valuation Test

I am always on the lookout for companies with attractive prospects that have been unfairly discounted by the market. That means I typically shy away from stocks that have already made strong advances, or those that are cheap for a reason.

You will never see me buy into a company like Tesla Motors (Nasdaq: TSLA). While its prospects for success appear good, Tesla is commanding a premium on almost every valuation metric. The stock is trading at what I consider to be an irrationally exuberant level, and while it certainly may trend higher from here, I value fundamentals over bullish investor sentiment — which can change very quickly. So Tesla passes my test for "good prospects going forward", but badly fails my value test.

Petrobras (NYSE: PBR) is just the opposite. I was once an investor in this giant Brazilian integrated oil and gas company, whose stock has fallen by nearly two-thirds over the past five years. Over that same span, shares of US integrated majors Chevron (NYSE: CVX) and ExxonMobil (NYSE: XOM) rallied 98 percent and 48 percent, respectively.

So market sentiment has been firmly against Petrobras, and there are more and more articles being written about the "bargain" PBR has become. Many made similar claims a year ago. But if you had bought then, you would have seen your shares decline another 35 percent in the year since.

The problem with Petrobras is that while it is indeed deeply discounted, the factors responsible for the discount remain in place. The Brazilian government owns the majority of the voting shares in the company, and has forced Petrobras to sell fuel at a loss in order to keep the Brazilian citizens happy. This practice is what caused me to sell my shares.

The policy has cost the company billions in foregone profits, and there are no signs that it will end anytime soon. In fact, late last year Brazilian President Dilma Roussef! f resisted a proposal to index gasoline price increases to inflation.

Petrobras and Tesla could both double over the next year, but I don't like my odds with either company. What I prefer is to find companies with the sunny outlook of Tesla, but the negative market sentiment of Petrobras.

It probably won't come as a surprise that those opportunities aren't generally obvious, and tend to be very controversial. After all, market sentiment is usually negative for a reason. If the opportunity were more obvious, sentiment wouldn't be so negative. So if you plan to invest in a company or sector with a negative prevailing market sentiment, there are going to be a lot of people ready to tell you why you are wrong.

Natural Gas Sector Passes the Test

Natural gas producers meet my test of suffering from market skepticism despite bullish fundamentals. Three weeks ago in The Energy Letter I explained the situation with natural gas inventories in Flirting With a Natural Gas Shortage.

In a nutshell, because of the extremely cold winter, natural gas inventories over the winter were drawn down at the fastest rate and in the greatest volumes on record. Since I wrote that article, natural gas in storage — which is reported weekly in the Energy Information Administration's (EIA) Weekly Natural Gas Storage Report — has dropped below 1 trillion cubic feet (tcf) for the first time in 11 years. The present inventory level is 49 percent below the level of a year ago, and 48 percent below the five year average.

Of course this doesn't mean we are going to run completely out of natural gas in storage. Within the next three weeks we should enter injection season, which is when gas inventories start to rebuild. Every year, inventories tend to bottom near April 1, on average.

So of course inventories will soo! n begin t! o rebuild, but we are going to go into injection season with a serious deficit. And historically a significant deviation of inventories from normal will have a lingering effect on natural gas prices.

That doesn't mean I believe natural gas is going to be $10/MMBtu for the rest of the year. It could spike to that level briefly, and has already spiked above $8/MMBtu twice (on Feb 5 and Feb. 10), but this is not my thesis. My thesis is that natural gas producers are going to have to produce a lot, and they are going to get better prices for their gas than they did a year ago. In other words, quarterly results should consistently top last year's comparables.

The EIA is projecting that the inventory situation is going to remain tight all the way until the winter of 2015-2016:

But how has the market reacted toward natural gas producers? It isn't all that impressed. Companies are being undervalued based on the very low prices of two years ago and even last year, instead of the prospects for better prices this year. In fact some of the major natural gas producers are trading down at near double-digits over the past month, even as the country sank into a deeper inventory hole.

So this sector fits perfectly with my investment thesis. The prospects look good going forward based on the current inventory situation, and the companies and their stocks are out of favor. The inventory situation could normalize if the next winter is abnormally warm, but if we have a normal winter inventories will still be uncomfortably low throughout, and if we have a winter resembling this one we are going to be looking at natural gas prices north of $10/MMBtu.

Conclusions

In 2013 the average closing price for Henry Hub natural gas was $3.73/MMBtu. I predicted the average would be higher this year, and as a result of the very cold! winter I! would guess we will end up averaging something like $4.50/MMBtu for the year. That is money in the bank for many natural gas producers. In fact, the latest monthly Short-Term Energy Outlook (STEO) released by the EIA projected the average natural gas price for 2014 at $4.44/MMBtu, which is 6 percent higher than the forecast from February's STEO.

Thus the downside risk appears to be low and fairly well known, while there is substantial upside. Of course it's possible that these companies will remain cheap. Many stocks remain cheap for a very long time, and sometimes it takes that long for market sentiment to shift. I expect within six months we will see higher valuations, and if we go into the winter without restoring inventories to a healthy level it's going to be very difficult for the market to ignore the sector.  

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

Portfolio Update

First Solar's Bright Tomorrows

Not many companies get to dramatically lower their current-year earnings forecast and not get beat up too badly in the market, and none can reasonably hope to see their stock jump 20 percent on the news, as First Solar (Nasdaq: FSLR) did Wednesday.

The solar panels maker and utility-scale projects developer managed that nifty feat by overshadowing its lackluster 2014 profit forecast with unexpectedly sunny bottom-line outlooks for the following two years.

The company is now aiming for earnings of $2.20 to $2.60 a share this year, well short of the prior consensus estimate of $3.21 a share. On the other hand it's projecting $4.50 to $6 per share in fiscal 2015, and $3.50 to $5 in fiscal 2016 on the bottom line, the low points of those ranges still beating Wall Street estimates by some 20 percent.

To get there from here will require a significant expansion in margins recently pressured by the market inroads of inexpensively financed Chinese-made rooftop panels assembled with the rival crystalline silicon technology.

But Fir! st Solar�! ��s forecast can't just be written off as hopeful wishcasting during a business lull. First, there's the matter of the continuing efficiency gains for First-Solar's proprietary cadmium telluride thin-film panel technology, which is continuing to gain on silicon more rapidly than expected, such that within a couple of years crystalline silicon's cost advantage should vanish and possibly turn into a deficit.

There is also the matter of the current management's conservative forecasting record, with the company meeting or exceeding most financial targets laid out two years ago amid a painful contraction and restructuring.

First Solar remains bullish on the future utility-scale projects in the US, noting the growing competitiveness of big solar plants as natural gas prices rise and coal faces new environmental restrictions.

But it's also marketing First Solar's expertise and services aggressively (and increasingly successfully) overseas in places like Japan and the Mideast, while expanding into silicon-based rooftop installations for commercial and industrial properties.

First Solar continues to deepen its technology partnership with General Electric (NYSE: GE) announcing a new product marketing its arrays with a new powerful GE transformer as an integrated system.

And management has clearly been devoting a significant amount of time to considering a "yield-co," an affiliate akin to a master limited partnership, albeit one delivering tax-deferred distributions based on accelerated depreciation and net operating loss carryforwards rather than an income-tax exemption.

Like MLPs, "yield-cos" are often more highly valued than their issuers on a cash flow basis, lowering the parent's cost of capital while juicing its returns. First Solar's CEO described his company as "the belle of the ball rather than a straggler" as it considers its options on this score. But the $1.5 billion of net cash on the balance sheet pretty much removes any financial pres! sure to m! ove quickly in this direction.

This is a long-term story still worth investing in, but now mostly with house money for subscribers who bought on our advice on Aug. 28 and sold half of their initial stake on Thursday. The remainder now shows a total return of 99 percent. It will be well north of that if management once more delivers on its promises. Sell half of your initial stake in FSLR.     

  – Igor Greenwald

Hot Media Stocks To Buy Right Now

Recent stories have suggested that Microsoft (NASDAQ: MSFT  ) plans to buy the Nook Media division of Barnes & Noble (NYSE: BKS  ) , of which it already owns 17%. The story comes just days after the bookseller announced that Nook devices would include the full suite of Google (NASDAQ: GOOG  ) applications; the device runs on the Android operating system, but has never had full functionality.

In the video below, Fool.com contributor Doug Ehrman discusses the series of news events that have surrounded these three companies and then poses a question to Barnes & Noble about how information has been managed.

It's been a frustrating path for Microsoft investors, who've watched the company fail to capitalize on the incredible growth in mobile over the past decade. However, with the release of its own tablet, along with the widely anticipated Windows 8 operating system, the company is looking to make a splash in this booming market. In a��new premium report on Microsoft, a Motley Fool analyst explains that while the opportunity is huge, so are the challenges. The report includes regular updates as key events occur, so make sure to claim a copy of this report now by clicking here.

Hot Media Stocks To Buy Right Now: DIRECTV(DTV)

DIRECTV provides digital television entertainment in the United States and Latin America. The company provides direct-to-home (DTH) digital television services, as well as multi-channel video programming distribution services in the United States. It offers various channels of digital-quality video entertainment and CD-quality audio programming directly to subscribers' homes or businesses, as well as video-on-demand services; and approximately 160 national high-definition television channels and 4 3D channels. The company also provides premium professional and collegiate sports programming, such as the NFL SUNDAY TICKET package, which allows subscribers to view the NFL games. In addition, it offers DTH digital television services in Latin America and the Caribbean, including Puerto Rico. The company provides its local and international programming under the DIRECTV and SKY brand names. As of December 31, 2010, it served approximately 19.2 million subscribers in the United States; and 8.9 million subscribers in Latin America. The company was founded in 1990 and is based in El Segundo, California.

Advisors' Opinion:

• [By Doug Ehrman]

  DIRECTV (NASDAQ: DTV  ) stock surged when the company announced earnings results earlier this week, easily beating analyst estimates and highlighting the importance of sports programming to TV providers in driving revenues and profits. In the earnings call that followed the release, CEO Mike White was cagey about the future of the company's relationship with the NFL that costs about $1 billion per year and is set to expire in 2015. The market reacted well to the news, driving up DIRECTV stock by nearly 7% on the news, and allowing it to reach its highest level in a decade.

Hot Media Stocks To Buy Right Now: Gannett Co. Inc. (GCI)

Gannett Co., Inc. operates as a media and marketing solutions company in the United States and internationally. Its Publishing segment publishes 83 U.S. daily newspapers with affiliated online sites, including USA TODAY, a national, general-interest daily newspaper; USATODAY.com; USA WEEKEND, a magazine supplement for newspapers; Clipper Magazine, a direct mail advertising magazine; bi-weekly Nursing Spectrum and NurseWeek periodicals; and military and defense newspapers. This segment also includes 17 paid-for daily newspapers; approximately 200 weekly newspapers, magazines, and trade publications; and approximately 600 non-daily publications, as well as involves in commercial printing, newswire, marketing, and data services operations. The company?s Digital segment owns and operates CareerBuilder, an employment Web site, which offers online recruitment and career advancement services for employers, employees, recruiters, and job seekers; ShopLocal, which provides multicha nnel shopping and advertising services; Planet Discover, which offers hosted search and advertising services; PointRoll, which provides digital marketing services and technology; and Schedule Star, which offers scheduling solution for high school athletic departments. Its Broadcasting segment operates 23 television stations and affiliated Web sites, which produce local programming, such as news, sports, and entertainment programming. This segment also includes Captivate Network, a national news and entertainment network that delivers programming and full-motion video advertising on video screens located in elevators of office towers and select hotel lobbies in North America. The company has strategic business relationships with online affiliates, including Classified Ventures, ShopLocal.com, Topix, and Metromix LLC, as well as strategic marketing agreement with Microsoft. Gannett Co., Inc. was founded in 1906 and is headquartered in McLean, Virginia.

Advisors' Opinion:

• [By Laura Brodbeck]

  Earnings reports expected on Monday include:

  Netflix, Inc. (NASDAQ: NFLX) is expected to report third quarter EPS of $0.48 on revenue of $1.10 billion, compared to last year�� EPS of $0.13 on revenue of $905.09 million. Discover Financial Services (NYSE: DFS) is expected to report third quarter EPS of $1.19 on revenue of $2.07 billion, compared to last year�� EPS of $1.21. W.R. Berkley Corporation (NYSE: WRB) is expected to report third quarter EPS of $0.71 on revenue of $1.57 billion, compared to last year�� EPS of $0.61 on revenue of $1.42 billion. Gannett Co., Inc. (NYSE: GCI) is expected to report third quarter EPS of $0.44 on revenue of $1.27 billion, compared to last year�� EPS of $0.56 on revenue of $1.31 billion.

  Economics

• [By Dan Caplinger]

  Gannett (NYSE: GCI  ) will release its quarterly report next Monday, and investors are unusually enthusiastic about the company's prospects. Although a big acquisition raised awareness of Gannett's businesses outside the struggling newspaper industry, it's still unclear how much of a boost it will produce for Gannett earnings growth in the future.

• [By Monica Gerson]

  Gannett Co (NYSE: GCI) is expected to report its Q3 earnings at $0.41 per share on revenue of $1.27 billion.

  VMware (NYSE: VMW) is projected to report its Q3 earnings at $0.82 per share on revenue of $1.29 billion.

Top Warren Buffett Stocks To Own Right Now: Charter Communications Inc.(CHTR)

Charter Communications, Inc., through its subsidiaries, provides entertainment, information, and communications solutions to residential and commercial customers in the United States. The company offers cable video programming services, such as basic and digital video, premium channels, OnDemand, pay-per-view, high definition television, digital video recorder, and online video services; Internet services; Charter.net, which provides multiple e-mail addresses, as well as various entertainment, games, news, and sports content; and telephone services. It also provides broadband communications solutions, such as Internet access, data networking, fiber connectivity to cellular towers and office buildings, video entertainment services, and business telephone services under the Charter Business brand name to business and carrier organizations. As of December 31, 2011, the company served approximately 4.1 million video customers; approximately 3.5 million Internet customers; appr oximately 1.7 million telephone customers; and approximately 476,200 commercial primary service units. Charter Communications, Inc. was founded in 1999 and is based in St. Louis, Missouri.

Advisors' Opinion:

• [By Paul Ausick]

  Seeing how its initial bid of $132.50 per share ($37.3 billion) for Time Warner Cable Inc. (NYSE: TWC) produced an immediate rejection, cable operator Charter Communications Inc. (NASDAQ: CHTR) is reported to be considering sweetening its offer to somewhere in the low $140s.

• [By Michael Calia]

  Comcast Corp.(CMCSA) is much more likely to work with Charter Communications Inc.(CHTR) on a bid for Time Warner Cable Inc.(TWC) than to pursue an offer on its own, said a person familiar with the situation–a major boost to Charter’s hopes of winning the takeover battle.

Hot Media Stocks To Buy Right Now: News Corporation(NWSA)

News Corporation operates as a diversified media company worldwide. Its Cable Network Programming segment produces and licenses news, business news, sports, general entertainment, and movie programming for distribution through cable television systems and direct broadcast satellite operators primarily in the United States, Latin America, Europe, and Asia. The company?s Filmed Entertainment segment produces and acquires live-action and animated motion pictures for distribution and licensing in entertainment media, as well as produces and licenses television programming worldwide. Its Television segment operates 27 broadcast television stations in the United States. The company?s Direct Broadcast Satellite Television segment distributes programming services via satellite and broadband directly to subscribers in Italy. Its Publishing segment provides newspapers and information services, such as publishing national newspapers in the United Kingdom, approximately 146 newspapers in Australia, and a metropolitan and a national newspaper in the United States; book publishing services, including the publishing of English language books worldwide; and integrated marketing services comprising the publishing of free-standing inserts, which are marketing booklets containing coupons, rebates, and other consumer offers, as well as provides in-store marketing products and services, primarily to consumer packaged goods manufacturers in the United States and Canada. The company also sells advertising, sponsorships, and subscription services on the company?s various digital media properties and outdoor advertising space on various media primarily in Russia and eastern Europe; and provides data systems and professional services that enable teachers to use data to assess student progress and deliver individualized instructions. News Corporation was founded in 1922 and is headquartered in New York, New York.

Advisors' Opinion:

• [By WALLSTCHEATSHEET]

  News Corp. is a media and information services company that has recently spun-off of its very profitable entertainment segment. It is being reported that the company recently made a profit which is a turn around from last year, signaling signs of improvement. The stock has seen progress but is now pulling-back as markets book gains. Over the last four quarters, earnings and revenues have been on the rise which has left investors optimistic about the company. Relative to its peers and sector, News Corp. has been a weak year-to-date performer. WAIT AND SEE what News Corp. does this quarter.

• [By Gary Bourgeault]

  Storyful acquired by News Corp.
  It was an excellent decision by News Corp. (NASDAQ: NWSA  ) to acquire Storyful for $25 million. The company now has the resources to scale out much quicker in what will become a crowded market.

Hot Media Stocks To Buy Right Now: Discovery Communications Inc(DISCA)

Discovery Communications, Inc. operates as a non fiction media and entertainment company worldwide. The company provides original and purchased programming across various distribution platforms. Its content covers science, exploration, survival, natural history, sustainability of the environment, technology, docu-series, anthropology, paleontology, history, space, archaeology, health and wellness, engineering, adventure, lifestyles, forensics, civilization, and current events. The company owns and operates nine national television networks in the United States, including Discovery Channel, TLC, Animal Planet, Science Channel, Investigation Discovery, Military Channel, Planet Green, Discovery Fit & Health, and Velocity. Discovery Communications also has interests in Oprah Winfrey Network, a pay-television network and Web site; The Hub that features original programming, game shows, and live-action series and specials; and 3net, a three-dimensional network. In addition, it o ffers network branded Web sites, and mobile and video-on-demand services; and distributes various national and pan-regional television networks. Further, the company develops and sells curriculum-based products and services to public and private K-12 schools, such as access to an online VOD service that includes curriculum-based tools, professional development services, and student assessment and publication of hardcopy curriculum-based content; and postproduction audio services to motion picture studios, independent producers, broadcast networks, cable channels, advertising agencies, and interactive producers. As of December 31, 2011, it operated approximately 150 distribution feeds in 40 languages. The company is headquartered in Silver Spring, Maryland.

Advisors' Opinion:

• [By Ben Levisohn]

  Discovery Communications (DISCA) has gained 4.9% to $88.48 after the company reported a profit of 80 cents a share, beating forecasts for 72 cents.

• [By Lauren Pollock]

  Discovery Communications Inc.(DISCA) is mulling a bid for Scripps Network Interactive Inc.(SNI), the owner of cable channels like the Food Network and HGTV, according to a person familiar with the matter. Shares of Scripps jumped 10% to $83.01 premarket.

Hot Media Stocks To Buy Right Now: Comcast Corporation(CMCSA)

Comcast Corporation, together with its subsidiaries, provides entertainment, information, and communications products and services in the United States and internationally. Its Cable Communications segment provides video, high-speed Internet, and phone services to residential and business customers. As of June 30, 2011, its cable systems served approximately 22.5 million video customers, 17.5 million high-speed Internet customers, and 9.1 million phone customers. The company?s Cable Networks segment operates cable entertainment networks, such as USA Network, Syfy, E!, Bravo, Oxygen, Style, G4, Chiller, Sleuth, and Universal HD; news and information networks, including CNBC, MSNBC, and CNBC World; cable sports networks comprising Golf Channel and VERSUS; regional sports and news networks; international entertainment, and news and information networks, such as CNBC Europe, CNBC Asia, and Universal Networks International portfolio of networks; cable television production oper ations; and digital media properties consisting primarily of brand-aligned Websites and other Websites, such as DailyCandy, Fandango, and iVillage. Its Broadcast Television segment operates the U.S. broadcast networks, NBC and Telemundo; 10 NBC and 15 Telemundo owned local television stations; broadcast television productions; and related digital media properties. The company?s Filmed Entertainment segment operates Universal Pictures, which produces, acquires, markets, and distributes filmed entertainment and stage plays worldwide in various media formats for theatrical, home entertainment, television, and other distribution platforms. Its Theme Parks segment operates Universal Studios Hollywood park and Wet ?n Wild water park, as well as licenses intellectual properties and provides services to third parties that own and operate Universal Studios Japan and Universal Studios Singapore. Comcast Corporation was founded in 1963 and is based in Philadelphia, Pennsylvania.

Advisors' Opinion:

• [By Bloomberg]

  To spark a bidding contest for World Wrestling Entertainment Inc. (WWE), all Vince McMahon needs to do is wave a "for sale" sign. McMahon, 68, controls the voting power of the $2.3 billion company that's been entertaining spectators with staged fights for decades. The stock is at a record after WWE launched its own subscription streaming network and became the subject of takeover speculation. Should McMahon ever decide he's ready to sell, companies from Comcast Corp. (CMCSA) to Madison Square Garden Co. (MSG) may line up with offers, Albert Fried & Co. and National Alliance Capital Markets said. "What is McMahon's succession plan and who will he pass the keys of the kingdom to?" Robert Routh, an analyst at National Alliance, said in a phone interview. "WWE would be very attractive to many different types of buyers. What they've built can't be recreated. But without McMahon's blessing, it doesn't matter how much somebody is willing to pay for the company." The franchise that thrust Hulk Hogan and The Rock into stardom owns the television shows "Raw" and "Smackdown," which have a dedicated following and command high cable-TV ratings, Vertical Group said. The company, which is hosting its annual WrestleMania event in three weeks, will post its best revenue and profit growth in more than a decade next year, according to analysts' estimates compiled by Bloomberg. Stock Surge The stock has climbed 35 percent this month, in part because of takeover speculation, to close at $30.94 last week. WWE isn't in merger talks, Chief Financial Officer George Barrios said in an interview March 6. A representative for the Stamford, Connecticut-based company, declined to comment last week beyond Barrios' earlier statement. WWE's programs, which air on Comcast's USA and SyFy cable networks, may find a new home by the end of April, Barrios said. He said the company is in discussions on future domestic TV distribution with "multiple parties." It has held distribution tal

Hot Media Stocks To Buy Right Now: CBS Corporation(CBS)

CBS Corporation, together with its subsidiaries, operates as a mass media company in the United States and internationally. The company?s Entertainment segment distributes a schedule of news and public affairs broadcasts, sports, and entertainment programming; produces, acquires, and distributes programming, including series, specials, news, and public affairs; produces and distributes theatrical motion pictures across various genres; and operates online content networks for information and entertainment. Its Cable Networks segment owns and operates multiplexed channels that offers subscription program services, including recently released theatrical feature films, original series, documentaries, boxing, mixed martial arts and other sports-related programming, and special events; and CBS College Sports Network, a 24-hour cable program service related to college sports. This segment also owns and manages Smithsonian Networks, which operates Smithsonian Channel, a basic cab le service in the United States. The company?s Publishing segment publishes and distributes adult and children?s consumer books in printed, audio, and digital formats. Its Local Broadcasting segment owns 29 broadcast television stations; owns and operates 130 radio stations in 28 U.S. markets and related online properties; and owns local Websites that combine television and radio local media brands online to provide the latest news, traffic, weather, and sports information, as well as local discounts, directories, and reviews. The company?s Outdoor segment sells advertising space on various media, including billboards, transit shelters and other street furniture, buses, rail systems, mall kiosks, stadium signage, and in retail stores. CBS Corporation was founded in 1986 and is headquartered in New York, New York.

Advisors' Opinion:

• [By Rich Duprey]

  Mass media giant�CBS� (NYSE: CBS  ) �announced yesterday�its second-quarter dividend of $0.12 per share, the same rate it paid the last three quarters, after raising the payout 20%, from $0.10 per share.

• [By Tim Beyers]

  He's right. Network television used to command the highest ratings. Now, CBS (NYSE: CBS  ) , Comcast (NASDAQ: CMCSA  ) subsidiary NBCUniversal, News Corp.'s (NASDAQ: FOXA  ) Fox, and Walt Disney's (NYSE: DIS  ) ABC are fighting for every eyeball as AMC, HBO, and Netflix break rules.

Top Gas Companies To Own In Right Now

Oscar Wilde once said that experience is the name we give to our mistakes. My investment in Sandridge Mississippian Trust II (NYSE: SDR  ) has been the greatest experience of my Special Situations portfolio. But in investing, as in life, to be successful you must make the next right decision, rather than foolishly holding to a past commitment that has been proven wrong. So I've decided to sell my shares in this troubled royalty trust and move on to find a good investment. (I've got a good one here.)

Ouch, that hurts
This investment has been painful, mitigated only by the relatively small stake I took and the ongoing stream of distributions. I purchased shortly after the IPO at $22.20 per share. It was all downhill from there.

After Thursday's close, the stock is down to $7.34, or about 67%. The only salve is the cash distributions totaling $4.25. The overall return comes to -48%. Bad work if you can get it.

It's the second year in a row that the trust has recorded a significant downward revision in reserves. Increasingly the trust is relying on selling natural gas and liquids, as opposed to oil, as previously indicated in the prospectus. That is lowering royalties, which hurts cash distributions over time.

Top Gas Companies To Own In Right Now: Legacy Oil + Gas Inc (LEGPF.PK)

Legacy Oil + Gas Inc. (Legacy) is engaged in exploration, exploitation and development drilling for oil and natural gas reserves. Legacy's wholly owned subsidiary, Legacy Oil & Gas ND, Inc., holds properties and operates in the State of North Dakota. Its Southeast Saskatchewan properties are located in an area ranging from approximately 130 to 290 kilometers southeast of the city of Regina, Saskatchewan. Legacy has an average working interest of approximately 75% in 24,576 gross (18,647 net) acres of undeveloped land at Taylorton. It has an average working interest of approximately 70% in 32,959 gross (22,938 net) acres of undeveloped land in the Viewfield Bakken play with properties at Stoughton, Heward and Star Valley. On January 1, 2011, it amalgamated with its wholly owned subsidiaries Legacy VRI Ltd. and Legacy TV Ltd. In April 2013, it closed the acquisition of Villanova Oil Corp. (Villanova) and the acquisition of light oil assets. Advisors' Opinion:

• [By Value Digger]

  To open up new Cardium opportunities, Manitok is also expanding to the Southern Alberta Foothills, where it plans to drill the first well of the farm-in with Legacy Oil & Gas (LEGPF.PK) before year end. Legacy Oil has a 99% average working interest in the Farm-in Lands prior to Manitok earning. Manitok will pay 100% of the cost to drill, complete and equip one horizontal Cardium oil well in order to earn 70% of Legacy's working interest, in a small block of land within the Farm-in Lands. If Manitok drills, completes and equips 3 horizontal Cardium oil wells at 100% of the cost, it will earn the entire 70% of working interest in Legacy's Farm-in Lands.

Top Gas Companies To Own In Right Now: Atlas Resource Partners LP (ARP)

Atlas Resource Partners, L.P. (Atlas Resource Partners), incorporated on October 13, 2011, is an independent developer and producer of natural gas, crude oil and natural gas liquids (NGL), with operations in basins across the United States. The Company is a sponsor and manager of investment partnerships, in which it co-invests, to finance a portion of its natural gas and oil production activities. During the year ended December 31, 2012, its average daily net production was approximately 77.2 million cubic feet equivalent. On December 20, 2012, it completed the acquisition of DTE Gas Resources, LLC from DTE Energy Company. On September 24, 2012, the Company acquired Equal Energy, Ltd.�� (Equal) remaining 50% interest in approximately 8,500 net undeveloped acres included in the joint venture. On July 26, 2012, it completed the acquisition of Titan Operating, L.L.C. On April 30, 2012, it acquired certain oil and natural gas assets from Carrizo Oil & Gas, Inc. In April 2012, it acquired a 50% interest in approximately 14,500 net undeveloped acres in the oil and NGL area of the Mississippi Lime play in northwestern Oklahoma.

Through December 31, 2012, the Company owned production positions in the areas of the Barnett Shale and Marble Falls play in the Fort Worth Basin in northern Texas; the Appalachia basin, including the Marcellus Shale and the Utica Shale; the Mississippi Lime and Hunton plays in northwestern Oklahoma, and the Chattanooga Shale in northeastern Tennessee, the Niobrara Shale in northeastern Colorado, the New Albany Shale in southwestern Indiana and the Antrim Shale in Michigan. During 2012, the Company had ownership interests in over 525 wells in the Barnett Shale and Marble Falls play and 569.3 billion cubic feet equivalent of total proved reserves with average daily production of 31.9 million cubic feet equivalent. During 2012, the Company had ownership interests in over 10,200 wells in the Appalachian basin, including approximately 270 wells in the Marcellus Shale and 1! 12.6 billion cubic feet equivalent of total proved reserves with average daily production of 35.6 million cubic feet equivalent. During 2012, it owned 21 billion cubic feet equivalent of total proved reserves with average daily production of 1.9 million cubic feet equivalent in the Mississippi Lime and Hunton plays in northwestern Oklahoma. During 2012, the Company had average daily production of 7.8 million cubic feet equivalent in the Chattanooga Shale in northeastern Tennessee, the Niobrara Shale in northeastern Colorado, the New Albany Shale in southwestern Indiana, and the Antrim Shale in Michigan.

Advisors' Opinion:

• [By Matt DiLallo]

  The management team at oil and gas company�Atlas Energy (NYSE: ATLS  ) has really taken Warren Buffett's advice to heart. Buffett's old adage to "be fearful when others are greedy and greedy when others are fearful" seems to be that team's approach. After selling its shale assets to Chevron at the top of the market, the company has been diligently acquiring natural gas assets at the market's low. That blueprint continues to be followed as evidenced by the recently announced acquisition of substantial natural gas assets via its master limited partnership, Atlas Resource Partners (NYSE: ARP  ) .

5 Best Value Stocks To Own Right Now: Gastar Exploration Ltd (GST)

Gastar Exploration Ltd (Gastar) is an independent energy company engaged in the exploration, development and production of natural gas and oil in the United States. The Company�� principal business activities include the identification, acquisition, and subsequent exploration and development of natural gas and oil properties with an emphasis on unconventional reserves, such as shale resource plays. As of December 31, 2011, it is pursuing the development of liquids-rich natural gas in the Marcellus Shale in the Appalachia area of West Virginia and, to a lesser extent, central and southwestern Pennsylvania. The Company also holds prospective acreage in the deep Bossier play in the Hilltop area of East Texas and conduct limited coal bed methane (CBM) development activities within the Powder River Basin of Wyoming and Montana. The Company is a holding company. Advisors' Opinion:

• [By Josh Young]

  The parallel to Goodrich in the transaction is Gastar Exploration (GST), which has approximately 100,000 net acres in the Hunton (excluding additional exposure from the WEHLU deal). Gastar, similar to Goodrich prior to the Sanchez TMS deal, seems to trade at a discount to a $2,000 per acre implied value for its unconventional oil acreage. In fact, Gastar's CEO recently said he thought the current liquidation value of Gastar's Marcellus assets would be $4-7 per share, net of debt, versus the current $4.25 share price.

Top Gas Companies To Own In Right Now: Chesapeake Utilities Corp (CPK)

Chesapeake Utilities Corporation (Chesapeake), incorporated in 1947, is a utility company engaged in energy and other businesses. The Company operates in three segments: Regulated Energy, Unregulated Energy and Other. The Company operates regulated energy businesses through its natural gas distribution divisions in Delaware, Maryland and Florida, natural gas and electric distribution operations in Florida through Florida Public Utilities Company (FPU), and natural gas transmission operations on the Delmarva Peninsula and Florida through its subsidiaries, Eastern Shore Natural Gas Company (Eastern Shore) and Peninsula Pipeline Company, Inc. (Peninsula Pipeline), respectively. Its unregulated businesses include its natural gas marketing operation through Peninsula Energy Services Company, Inc. (PESCO); propane distribution operations through Sharp Energy, Inc. and its subsidiary Sharpgas, Inc. (collectively Sharp) and FPU�� propane distribution subsidiary, Flo-Gas Corporation; and its propane wholesale marketing operation through Xeron, Inc. (Xeron). It also has an advanced information services subsidiary, BravePoint, Inc. (BravePoint). In February 2013, Florida Public Utilities Company, a a subsidiary of the Company announced that its propane subsidiary, Flo-Gas Corporation, purchased the propane operating assets of Glades Gas Company. In June 2013, the Company acquired Eastern Shore Gas Company (ESG) and Eastern Shore Propane Company (ESP). In June 2013, Chesapeake Utilities Corp announced that it has acquired the operating assets of Austin Cox Home Services, Inc.

Regulated Energy

The Company�� regulated energy segment provides natural gas distribution service in Delaware, Maryland and Florida, electric distribution service in Florida and natural gas transmission service in Delaware, Maryland, Pennsylvania and Florida. As of December 31, 2011, its Delaware and Maryland natural gas distribution divisions serve 53,851 residential and commercial customers and 97 industrial ! customers in central and southern Delaware and on Maryland�� eastern shore. Its Florida natural gas distribution operation consists of Chesapeake�� Florida division and FPU�� natural gas operation. As of December 31, 2011, its Florida electric distribution operation distributed electricity to 30,986 customers in four counties in northeast and northwest Florida. Eastern Shore operates a 402-mile interstate pipeline system, which transports natural gas from various points in Pennsylvania to its Delaware and Maryland natural gas distribution divisions, as well as to other utilities and industrial customers in southern Pennsylvania, Delaware and on the eastern shore of Maryland. Eastern Shore also provides swing transportation service and contract storage services. Peninsula Pipeline provides natural gas transportation service to a customer for a period of 20 years. This service is provided at a fixed monthly charge, through Peninsula Pipeline�� eight-mile pipeline located in Suwanee County, Florida.

The Company�� Delaware and Maryland natural gas distribution divisions have both firm and interruptible transportation service contracts with five interstate open access pipeline companies, including the Eastern Shore pipeline. These divisions are directly interconnected with the Eastern Shore pipeline, and have contracts with interstate pipelines upstream of Eastern Shore, including Transcontinental Gas Pipe Line Company LLC (Transco), Columbia Gas Transmission LLC (Columbia), Columbia Gulf Transmission Company (Gulf) and Texas Eastern Transmission, LP (TETLP). The Transco, Columbia and TETLP pipelines are directly interconnected with the Eastern Shore pipeline. The Gulf pipeline is directly interconnected with the Columbia pipeline and indirectly interconnected with the Eastern Shore pipeline.

Chesapeake�� Florida natural gas distribution division has firm transportation service contracts with Florida Gas Transmission Company (FGT) and Gulfstream Natural Gas System, LLC ! (Gulfstre! am). Eastern Shore has three contracts with Transco for a total of 7,292 dekatherms of firm peak day storage entitlements and total storage capacity of 288,003 dekatherms. Its electric distribution operation through FPU purchases all of its wholesale electricity from two suppliers: Gulf Power Company (Gulf Power) and JEA (formerly known as Jacksonville Electric Authority). The JEA contract provides generation, transmission and distribution service to northeast Florida. The Gulf Power contract provides generation, transmission and distribution service to northwest Florida.

Unregulated Energy

The Company�� unregulated energy segment provides natural gas marketing, propane distribution and propane wholesale marketing services to customers. As of December 31, 2011, its natural gas marketing subsidiary, PESCO, provided natural gas supply and supply management services to 3,080 customers in Florida and 16 customers on the Delmarva Peninsula. The gas, which PESCO sells, is delivered to retail customers through affiliated and non-affiliated local distribution company systems and transmission pipelines. PESCO bills its customers through the billing services of the regulated utilities that deliver the gas, or directly, through its own billing capabilities. As of December 31, 2011, Sharp, its propane distribution subsidiary, served 34,317 customers throughout Delaware, the eastern shore of Maryland and Virginia, and southeastern Pennsylvania. Its Florida propane distribution subsidiary provides propane distribution service to 14,507 customers in parts of Florida. Xeron, its propane wholesale marketing subsidiary, markets propane to petrochemical companies, resellers and retail propane companies in the southeastern United States. Its propane distribution operations purchase propane from suppliers, including oil companies, independent producers of natural gas liquids and from Xeron. In current markets, supplies of propane from these and other sources are readily available for purchase. It! s propane! distribution operations use trucks and railroad cars to transport propane from refineries, natural gas processing plants or pipeline terminals to its bulk storage facilities.

Other

The other segment consists of its advanced information services subsidiary, other unregulated subsidiaries, which own real estate leased to Chesapeake and its subsidiaries. Its advanced information services subsidiary, BravePoint, provides domestic and a range of international clients with information technology services and solutions for both enterprise and e-business applications. Skipjack, Inc. and Eastern Shore Real Estate, Inc. own and lease office buildings in Delaware and Maryland to affiliates of Chesapeake. Chesapeake Investment Company is an affiliated investment company.

Advisors' Opinion:

• [By Rich Duprey]

  Chesapeake Utilities� (NYSE: CPK  ) �has declared a regular quarterly dividend of $0.385 per share, a 5.5% increase over its previous payout of $0.365 per share. The dividend will be paid on July 5 to shareholders of record as of the close of business on June 17.�The increase raises the annualized dividend�$0.08�per share, from�$1.46, to�$1.54�per share.

• [By Rich Duprey]

  Natural gas and propane utility operator Chesapeake Utilities (NYSE: CPK  ) announced yesterday that as of May 31�it had completed the acquisition of Eastern Shore Gas (ESG) along with its affiliate Eastern Shore Propane (ESP), both indirect, wholly owned subsidiaries of Energy Equity Partners�that provide propane gas to residents of Worcester County, Md.

Top Gas Companies To Own In Right Now: CST Brands Inc (CST)

CST Brands, Inc., incorporated on November 7, 2012 , is a retailer of transportation fuels and convenience goods in North America. As of April 30, 2013, the Company operated 1,032 Corner Stores throughout the United States, including Texas, Louisiana, Arkansas, Oklahoma, New Mexico, Colorado, Wyoming, Arizona and California. Its stores also provide prepared foods. In May 2013, the Company announced that the Company which includes Corner Store and Depanneur du Coin, spun off from Valero Energy Corporation.

The Company offers a range of products, such as snack foods, tobacco products, beverages and fresh foods, including its own brands: Fresh Choices sandwiches, salads and packaged goods; U Force energy drinks; Cibolo Mountain coffees (the United States); Transit Cafe coffee and bakery (Canada); FC bottled sodas, and Flavors 2 Go fountain sodas. Its Corner Store locations also provide in-store Subway sandwich shops.

Advisors' Opinion:

• [By Roberto Pedone]

  Another potential earnings short-squeeze trade is CST Brands (CST), a retailer of transportation fuels and convenience goods in North America, which is set to release its numbers Tuesday before the market open. Wall Street analysts, on average, expect CST Brands to report revenue of $3.19 billion.

  The current short interest as a percentage of the float for CST Brands is very high at 19.4%. That means that out of the 55.66 million shares in the tradable float, 11.75 million shares are sold short by the bears. If the bulls get the earnings news they're looking for, then this stock could easily rip substantially higher post-earnings as the bears rush to cover some of their bets.

  From a technical perspective, CST is currently trending above its 50-day moving average, which is bullish. This stock has been trending sideways for the last three months, with shares moving between $30.31 on the downside and $33.96 on the upside. A high-volume move above the upper-end of its recent range could trigger a major breakout trade for shares of CST post-earnings.

  If you're in the bull camp on CST, then I would wait until after its report and look for long-biased trades if this stock manages to break out above some near-term overhead resistance levels at $32.99 to its all-time high at $33.96 a share with high volume. Look for volume on that move that hits near or above its three-month average action of 1.29 million shares. If that breakout hits, then CST will set up to enter new all-time high territory, which is bullish technical price action. Some possible upside targets off that breakout are $40 to $45 a share.

  I would simply avoid CST or look for short-biased trades if after earnings it fails to trigger that breakout and then drops back below its 50-day moving average of $32.12 a share with high volume. If we get that move, then CST will set up to re-test or possibly take out its next major support levels at $31.06 to $30.31 a share. Any high-vol

• [By David Sterman]

   

  3. CST Brands (NYSE: CST) The gas station operator was spun away from parent Valero Energy (NYSE: VLO) in May, and though shares eventually moved up above $33, they've been backsliding recently. A company director thought he spotted value by the time shares fell to $31.55 a share (where he picked up $142,000 in stock). But shares have continued to fall below $30.

  CST's newly independent management team aims to spruce up the company's 1,900 gas stations. It has the resources to make that happen: Valero left CST with more than $400 million in cash to work with. 

• [By John Kell]

  Valero Energy Corp.(VLO) said its fourth-quarter profit rose 28% as the oil refiner got a boost from the spinoff of gas-station retailer CST Brands Inc.(CST) Results easily topped estimates.

Top Gas Companies To Own In Right Now: Valero Energy Corporation(VLO)

Valero Energy Corporation operates as an independent petroleum refining and marketing company. The company operates through three segments: Refining, Ethanol, and Retail. The Refining segment engages in refining, wholesale marketing, product supply and distribution, and transportation operations. It produces conventional gasoline, distillates, jet fuel, asphalt, petrochemicals, lubricants, and other refined products. This segment also offers conventional blendstock for oxygenate blending, reformulated gasoline blendstock for oxygenate blending, gasoline meeting the specifications of the California Air Resources Board (CARB), CARB diesel fuel, low-sulfur and ultra-low-sulfur diesel fuel. The Ethanol segment produces ethanol and distillers grains. The Retail segment sells transportation fuels at retail stores and unattended self-service cardlocks; convenience store merchandise and services in retail stores; and home heating oil to residential customers. Valero Energy Corpora tion markets its refined products through bulk and rack marketing network; and sells refined products through a network of approximately 6,800 retail and wholesale branded outlets under the Valero, Diamond Shamrock, Shamrock, Ultramar, Beacon, and Texaco names in the United States, Canada, the United Kingdom, Aruba, and Ireland. As of December 31, 2011, it owned 16 petroleum refineries with a combined throughput capacity of approximately 3.0 million barrels per day; and operated 10 ethanol plants with a combined nameplate production capacity of approximately 1.1 billion gallons per year. The company was formerly known as Valero Refining and Marketing Company and changed its name to Valero Energy Corporation in August 1997. Valero Energy Corporation was founded in 1955 and is based in San Antonio, Texas.

Advisors' Opinion:

• [By Paul Ausick]

  Valero Energy Corp. (NYSE: VLO) posted a jump of 6.3% in short interest to a total of 12.6 million shares. Short interest comprises about 2.3% of Valero�� float. The company is scheduled to release fourth-quarter results Wednesday, and analysts are expecting EPS of $1.51 on revenues of $30.85. As with the two large integrated companies, Valero’s earnings and revenues are seen lower than a year ago.

Top Gas Companies To Own In Right Now: Alon USA Energy Inc. (ALJ)

Alon USA Energy, Inc. engages in refining and marketing petroleum products primarily in the South Central, Southwestern, and Western regions of the United States. The company operates in three segments: Refining and Marketing, Asphalt, and Retail. The Refining and Marketing segment refines crude oil into petroleum products, including gasoline, diesel fuel, jet fuel, petrochemicals, feed stocks, asphalts, and other petroleum products. It markets finished products and blend stocks through sales and exchanges with other oil companies, state and federal governmental entities, unbranded wholesale distributors, and various other third parties. This segment also markets motor fuels to distributors under the Alon brand; and licenses Alon brand name and provides payment card processing services, advertising programs, and loyalty and other marketing programs to licensed locations. The Asphalt segment is involved in the marketing of patented tire rubber modified asphalt products; and production of paving and roofing grades of asphalt comprising performance-graded asphalts, emulsions, and cutbacks. This segment sells paving asphalt to road and materials manufacturers and highway construction/maintenance contractors; polymer modified or emulsion asphalt to highway maintenance contractors; and roofing asphalt to roofing shingle manufacturers or other industrial users. The Retail segment operates retail convenience stores that offer various grades of gasoline, diesel fuel, food products, tobacco products, non-alcoholic and alcoholic beverages, and general merchandise primarily under the 7-Eleven and Alon brands. As of December 31, 2012, it had 298 retail convenience stores located in Central and West Texas, and New Mexico. The company was founded in 2000 and is headquartered in Dallas, Texas. Alon USA Energy, Inc. is a subsidiary of Alon Israel Oil Company, Ltd.

Advisors' Opinion:

• [By Robert Rapier] In last week’s issue I discussed the basics of the refining sector. Today I will provide an overview of four MLPs that hold refining assets.
  
  To review, the refining sector was very profitable in 2012 thanks to unusually high crack spreads, which for many US refiners are approximated by the price differential between Brent and West Texas Intermediate (WTI) crude oils. For a more thorough explanation of this phenomenon, please refer to last week’s issue.
  
  After years of trading at a $1 to $3 per barrel discount to WTI, Brent began fetching a premium a few years ago as a glut of crude developed in the mid-continent area of the US. In 2011 the Brent-WTI price differential increased to more than $25/bbl, and it remained historically high in 2012.
  
  But pipeline capacity started to catch up this year, and the share prices of refiners retreated as the glut began to dissipate and the Brent-WTI differential shrank. In Q3 2012, the Brent-WTI differential averaged $17.43/bbl, but by Q3 of this year, the differential had fallen to $4.43/bbl. This promises bad news for refiners about to report Q3 earnings.
  
  Many analysts downgraded the refining sector in Q3, but as the differential fell below $5/bbl it was hard to imagine that the news could get much worse. With poor Q3 results largely priced in, the differential subsequently rose back above $10/bbl, signaling better refining margins moving into Q4.
  
  Refiners began to post earnings this past week, and as expected they were weak. Valero (NYSE: VLO) reported slightly higher revenues year-over-year, but net earnings fell more than 50 percent from a year ago. Nevertheless, they beat the extremely pessimistic expectations of analysts, and Valero shares rose on the news.
  
  Phillips 66’s (NYSE: PSX) refining unit actually posted a loss, but its chemical business turned in a solid quarter which more than compensated for the disappointing refining results.
  
  The rest of the refine
• [By Ben Levisohn]

  Alon USA Energy (ALJ) and Alon USA Partners (ALDW) are surging thanks to a Credit Suisse upgrade, even as refiners like Valero Energy (VLO), Phillips 66 (PSX) and Holly Frontier (HFC) stumble.

  Bloomberg News

  Analyst Edward Westlake and team explain their optimism for the Alon USA pair:

  ALDW: Accounting for the revised commodity forecasts (plus support from
  the self-help programs that the company is pursuing), our LT EBITDA rises by c4% on average. Granted that there is the possibility that ALDW will not be able to pay out a distribution in 4Q13/1Q14, we flag that for those willing to look past the near-term headwinds, the rolling 12 month forward potential yield starting in 2Q14 is 15% (and rises to c20% by 4Q14) ��Certainly hard to overlook at these levels.

  ALJ: Accounting for the revised commodity forecasts (plus support from selfhelp
  programs), our LT EBITDA rises by c9% on average. ALJ could be worth up to c$15/sh (including the $2.25/sh expected contribution from the Bakersfield start-up ��Delivery of this project is key). At current levels, the stock still provides c20% upside in the scenario where Bakersfield does not proceed (or c40% if it does). We raise our rating and target price to Neutral and $14/sh.

  Alon USA Energy has gained 11% to $11.34 and Alon USA Partners has risen 5.2% to $11.12, even as Valero Energy has dropped 0.5% to $40.12, Phillips 66 has dipped 0.4% to $65.09 and Holly Frontier has fallen 1.1% to $43.71.

• [By Seth Jayson]

  Alon USA Energy (NYSE: ALJ  ) reported earnings on May 8. Here are the numbers you need to know.

  The 10-second takeaway
  For the quarter ended March 31 (Q1), Alon USA Energy beat expectations on revenues and crushed expectations on earnings per share.

• [By Dan Dzombak]

  Among companies with over a $1 billion market cap, today's oil and gas stocks leader was Alon USA Energy (NYSE: ALJ  ) , up 4.95% to $17.16. During the refiners' drop on Tuesday and Wednesday, Alon dropped 12.89%. Despite the comeback today, the stock is still down 8.6% from where it was before the plunge. Alon USA owns refineries in Louisiana and California, 11 asphalt terminals, as well as 300 7-11 retail locations. The company has been profiting heavily from the massive price difference between WTI and Brent crude. In November of 2012, the company IPO'd its Big Springs refinery as a master limited partnership, Alon USA Partners LP,�the proceeds of which Alon used to pay down debt.

Top Gas Companies To Own In Right Now: Helmerich & Payne Inc (HP)

Helmerich & Payne, Inc., incorporated on February 29, 1944, is engaged in contract drilling of oil and gases wells for others and this business. The Company's contract drilling business is composed of three reportable business segments: U.S. Land, Offshore and International Land. During the fiscal year ended September 30, 2012 (fiscal 2012), the Company's U.S. Land operations drilled in Oklahoma, California, Texas, Wyoming, Colorado, Louisiana, Pennsylvania, Ohio, Utah, Arkansas, New Mexico, Montana, North Dakota and West Virginia. Offshore operations were conducted in the Gulf of Mexico, and offshore of California, Trinidad and Equatorial Guinea. During fiscal 2012, the Company's International Land segment operated in six international locations: Ecuador, Colombia, Argentina, Tunisia, Bahrain and United Arab Emirates. The Company is also engaged in the ownership, development and operation of commercial real estate and the research and development of rotary steerable technology. Each of the businesses operates independently of the others through wholly owned subsidiaries. The Company's real estate investments located exclusively within Tulsa, Oklahoma, include a shopping center containing approximately 441,000 leasable square feet, multi-tenant industrial warehouse properties containing approximately one million leasable square feet and approximately 210 acres of undeveloped real estate. The Company's subsidiary, TerraVici Drilling Solutions, Inc. (TerraVici), is developing rotary steerable technology. As of September 30, 2012, it had 176 rigs under fixed-term contracts. During fiscal 2012, the Company leased a 150,000 square foot industrial facility near Tulsa, Oklahoma for the purpose of overhauling/repairing rig equipment and associated component parts.

U.S. Land Drilling

As of September 30, 2012, the Company had 282 of its land rigs available for work in the United States. During fiscal 2012, the Company's U.S. Land operations contributed approximately 85% of the Compan! y's consolidated operating revenues. During fiscal 2012, rig utilization was approximately 89%. During fiscal 2012, the Company's fleet of FlexRigs had an average utilization of approximately 97%, while the Company's conventional and mobile rigs had an average utilization of approximately 11%. As of September 31, 2012, 231 out of an available 282 land rigs were working.

Off Shore Drilling

During fiscal 2012, the Company's Offshore operations contributed approximately 6% of the Company's consolidated operating revenues. During fiscal 2012, rig utilization was approximately 79%. During fiscal 2012, the Company had eight of its nine offshore platform rigs under contract and continued to work under management contracts for four customer-owned rigs. During fiscal 2012, revenues from drilling services performed for the Company's offshore drilling customer totaled approximately 56% of offshore revenues.

International Land Drilling

During fiscal 2012, the Company's International Land operations contributed approximately 9% of the Company's consolidated operating revenues. During fiscal 2012, rig utilization was 77%. As of September 30, 2012, the Company had nine rigs in Argentina. During fiscal 2012, the Company's utilization rate was approximately 52%. During fiscal 2012, revenues generated by Argentine drilling operations contributed approximately 2% of the Company's consolidated operating revenues. The Argentine drilling contracts are with international or national oil companies. As of September 30, 2012, the Company had seven rigs in Colombia. During fiscal 2012, the Company's utilization rate was approximately 79%. During fiscal 2012, revenues generated by Colombian drilling operations contributed approximately 3% of the Company's consolidated operating revenues. During fiscal 2012, revenues from drilling services performed for the Company's customer in Colombia totaled approximately 1% of consolidated operating revenues and approximately 16% of inter! national ! operating revenues. The Colombian drilling contracts are with international or national oil companies. As of September 30, 2012, the Company had five rigs in Ecuador. During fiscal 2012, the utilization rate in Ecuador was 97%. During fiscal 2012, revenues generated by Ecuadorian drilling operations contributed approximately 2% of consolidated operating revenues. As of September 30, 2012, the Company had two rigs in Tunisia, four rigs in Bahrain and two rigs in United Arab Emirates.

Advisors' Opinion:

• [By Dividends4Life]

  Helmerich & Payne Inc. (HP) is the holding company for Helmerich & Payne International Drilling Company, an international drilling contractor.
  Yield: 3.0% | Years of Dividend Growth: 41